CHAPTER-1 INTRODUCTION

As we are approaching to the twenty first century the FMCG product market is growing like a money plant in this world. Quantity. Notonly companies are gaining huge profit from these productsources but these products are also one of the main ingredients inour day today life. Quality. personal care. beverages. Through this we can understand that the customers in the currentscenario not only purchase the product based on the one qualitythat it contains. So knowing the customers attitude is important andwhat are the factors they considered when purchasing a product So by this project we can come to know the effect of branding on consumer while purchasing a FMCG product & Durable goods.advertisement. This minor project consist of the response of different age grouprespondents who specifies their predetermined factors which drives them while purchasingThe factors which drive them to buy the products are as under. Now a days customer has a wide variety of choice while selectingFMCG. Brand name. Availability.Chocolates & Confectionaries. . fabric care etc. So the customer has to think and decide on theproducts which he is going to purchase because of the availability of the choices replicates variants in every section of the products. Different factor governing the customer based on different product category like milk products. But they carefully analyze it and then go for thepurchase. producer has to innovate additional values to the product that the product continues it presence in the market. Packing. prepared dishes.Price.

Main characterstics of FMCG·s : y From the customers perspective : a) Frequent purchase. . b) Low in investment(price). c) Low in involvement. b)Low margin. FMCG refers to those retail goods that generally replaced or fully used up over a short period of days. compared to those that are usable for extended periods of time. c)Extensive distribution network. y From the marketers angle : a)High volume. d)High Stock turnover.weeks or months & within one year. The goods that comprise in this category are ones that need to be replaced frequently .FMGC-Fast moving consumable goods Meaning : A type of good that is consume every day by the average consumer.(Little or no effort to choose the item).

It helps in price differretiation of a product. 2. It estimates imitation. it denotes quality or standard of product. . It facilitates in making a choice. term. 6. or more specifically .[ Functions/Objects of Branding : 1.there is no way of making choice. 3.DURABLE GOODS : Durable good is a good that does not quickly wear out . It is essential for competition. because without a means for identification. It helps in product identification and gives distinctive to a product. It helps in create and sustain brand loyalty to a particular product. 4. It helps in advertising and packaging activities. 5. BRANDING : American marketing Association defines a brand as. one that yields utility over time rather than being completely consumed in one use. Indirectly . 7. 8. symbol or design or a combination of them which is intended to identify the goods or services of one seller and to differretiate them from those of the competitors. \a name.

2) Brand Image The seller can build up a bright image of his product around the brand.Advantage of Brand Name & Advantages to manufacturers : 1) Product differentiation Product differentiation by branding enables the manufacturers to establish his own price and eliminate price competition to some extent. 3) Creation of market Ever increasing competition leads to branding of product by a manufacturer to face competition and create exclusive market for the product. . branding and packing go hand to hand. display and sales promotion. services offered and the companys reputation. policies and marketing efforts. A brand image id built up through the years by quality of products produced. 4) Advertisement and publicity Branding helps advertising.

Rapid sales turnover assures fresh due to frequent replacement of stock with the retalier. . Advantages to customer : 1.5) Brand Prefernce Branding not only gives separate identiy and easy recognition to the product. A customer has an assurance of quality and consistency in the product attributes being offered. branding and packaging go hand to hand. Certain brands provide status and psychological satisfaction to the consumers. But it also creates special brand preference and brand loyalty. 2. 4. display and sales promtion. 7) Expanding the product mix Many successful multi product firms today began with the single product whose success created on umbrella which additional product could be launched with the less risk. There is considerable saving oftimes and energy in shopping for goods. 3. 6) Brand patronage Branding helps advertising.

social and physical of all potential consumers as they become aware of. It is important for marketers of Indian firms also to understand the Indian market and its characterstics so as enable them to take crucial marketing decisions related to products. It is the responsibility of the marketing system to discover and serve the market demand. purchase. It provides the vital link in connecting production (supply) and consumption that will ensure a desired standard of living in an economy. promotion and distribution.CONSUMER BEHAVIOUR We start with the defination of consumer Market. Consumer Behavior is defined asW \All psyhcological. This will help in matching company products with consumer needs. consume and tell others about products and services[ Nature and Characterstics of Indian consumers Philip kotler has rightly said ZMarket may be defined as a relationship between consumer and producer occuring at a time place and at a value mutually agreeable and acceptable to the concerned parties[. . \A consumer Market can be defined as all the individuals and households who buys goods and sevices for personal consumption can be said to be part of the concumer market. evaluate. price.

Age fator 6. Temperature in extreme north is low as compared to the south and north regions. food. Religion 10. Urban-Rural composition 4. Climate in terms of temperature is also varied. Knowledge about the density of . Geography 2. Related to density of population also there is diversity among the different regions/states depending upon topography. the distribution of the population is also unequally divided amongst the states of India. There are also various regions namely great mountain zone. the desert regions. Sex compositon 5. Further. Literacy level 7. Population : India is one of the worlds highly populted countries. Indo Gangetic plain. climate and level of economic development. habits and festival Georaphy : India ranks seventh in the world in terms of size. Linguistic diversity 9. Income level 8. Dress.Nature and Characteristics of Indian consumer 1. Population 3.

the role of women has undergone significant changes. This urban-rural feature will have a bearing on the consumption pattern of the consumers. This rate of increase in urban population has been more pronounced in the states of Gujurat and maharastra mainly. This knowledge of sex composition will help the marketer to understand the market better and work out . This shift towards urbanization is mainly due to seeking of better job prospects. In India the sex composition in most the states consists of more males than females except in Kerala where it is the other way round. During the period. the urban housewif is an active partner and plays a major role in the purchase decisions.population will help the marketing executives in developing appropriate priorities and alternative marketing stratagies. post interpendence period has seen a gradual shift of people towards urbanization. The profile of women has changed from tht of a housewife to a working woman. Today. the urban population increased almost four times whereas rural population could only double itslef. Urban-Rural Composition : About 80% of Indias population is rural whereas 20% is urban. However. Sex Composition : With increasing education. higher income and consequently better standard of living.

Age ´ .strategies to design suitable promotional techniques for each gender.