Fast Moving Consumer Goods (FMCG

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Dissertation Report On

Buying Behavior of FMCG Products

Submitted Submitted By: Prof. Vandana Chandra Director (ABS) (Agri-Business) AMITY AMITY University Lucknow Lucknow Campus

To: R.P.Singh MBA University Campus

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Under the supervision of: Mr. Ashish Chandra Faculty Guide (ABS) AMITY University Lucknow Campus

Acknowledgement
I consider my proud privilege to express deep sense of gratitude to Prof. R.P.Singh for his admirable and valuable guidance, keen interest, encouragement and constructive suggestions during the course of the project. I would also like to express my hearty gratitude to my faculty guides, Dr. Arun Bhadauria and Mr. Ashish Chandra of Amity University, Lucknow for their valuable guidance and sincere cooperation, which helped me in completing this summer project. I would also like to thank my mother Mrs. Usha Rani and my father Mr. Ramesh Chandra, for their inspiration and moral support received in completing this work. Last, but not the least, I sincerely thank all the members of my department for their immense support and assistance extended during the course of this project and in making it a valuable experience. Vandana Chandra
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Overview of FMCG 3 4.MBA (Agri . Comparison between FMCG in 2005 & 2006 4-5 6. Scope of FMCG 8 8. FMCG in 2006 4 5.Business) IVth Semester Table of Content 1. Introduction 2-3 3. Growth prospects 8-11 4 . Sector’s outlook 5-7 7. Executive summary 1-1 2.

15 13. 18. 15. 17. 12 11. 20. 14. 16. Top players in FMCG sector 11 10. 63 Analysis Conclusion Suggestions & recommendations 31-60 61-62 Research methodology Panoramic View Income based classification Socio – economic classification Age demographics Geographical dispersion 16-19 20-22 23-24 25-28 28-29 Review of literature Research objectives 12-14 Secondary players 5 . 30 19. 21. 12.9.

she has given few suggestions & recommendations regarding the topic.22. She has used stratified random sampling as her sampling procedure. 4. the researcher has first of all given a brief review about FMCG sector as a whole. sample unit. 5. 2. Then she has given a review of the findings of some of the researches that has already been conducted by various researchers. 9. 1.. sampling region. sampling procedure that she has used in her report. 7. Then finally. Then she has enumerated her research objectives. 8. Then she has given the panoramic view regarding the topic. the 6. 3. In this report. Then she has described her research methodology i. Questionnaire 66-68 64-65 Executive Summary In this research the researcher has put an effort to understand the buying behavior of the consumers towards FMCG products. Then she has analyzed the data which was collected by a questionnaire. References 23. sample size. 6 . Then she has concluded the findings of the survey.e.

shampoos. Fast moving consumer goods (FMCG) are popularly named as consumer packaged goods. It is wider and less competitive market for the FMCG.Introduction There was a time when the FMCG companies ignores rural market. 7 . The most common in the list are toilet soaps. household accessories. packaged food stuff. they took no any interest to produced or sell products in rural market in India. the demand of FMCG is increasing continuously. tooth paste. As the income level of the rural consumers increasing. Items in this category include all consumables (other than groceries/pulses) people buy at regular intervals. the strategy and marketing style of FMCG companies had been changed. It was the initial stage of FMCG companies in India. extends to certain electronic goods. These items are meant for daily or frequent consumption & have a high return. shoe polish. The rural market is the one of the best opportunity for the FMCG sector in the India. shaving products. detergents. As per as the time had passed.

.A major portion of the monthly budget of each household is reserved for FMCG products. A recent phenomenon in the sector was entry of multinationals and cheaper imports. as the number of products the consumer uses. FMCG companies maintain intense distribution network. gained the momentum. FMCG sector has now. Overview of FMCG Sector FMCG is an acronym for Fast Moving Consumer Goods. is comparatively very high.e. Also the market is more pressurized with presence of local players in rural areas and state brands. which refer to things that we buy from local supermarkets on daily basis. New entrants who wish to bring their products in the national level need to invest huge sums of money on promoting brands. i. principally because of the smaller companies 8 . The volume of products circulated in the economy against FMCG products is very high. the things that have high turnover & are relatively cheaper. Competition in FMCG sector is very high resulting in high pressure on margins. After 4 years of dull performance in both revenues & profits. Companies spend a large portion of their budget on maintaining distribution networks. Manufacturing can be outsourced. since 2005.

in FMCG depends on two factors: • • Growth Increase in penetration and consumption in rural areas Change in aspirations and tastes of the urban population 9 . Packets and sachets contributed to the highest growth in rural areas. however. The FMCG sector has under performed the benchmark BSE sensex in 2006. Comparison of 2006 and 2005 After two years of sinking performance of FMCG sector. Though both the indices were close to each other till august 2006. in the later part of the year the sensex surpassed the FMCG index by a reasonable margin.that have substantially improved their market shares at the cost of larger players. while both the urban and rural sector together registered a growth of around 8%. the regional players. With the rise in disposable income and the economy in good health. we would realize that the returns on money invested in FMCG index are much lower than the returns in benchmark index. Strong growth was seen across various segments in FY06. & in some cases. If we carefully observe the FMCG index & BSE index. the year 2005 has witnessed the FMCG’s demand growing. the urban consumers continued with their shopping spree. The rural demand grew at around 11%.

60. Besides demand. intense competition between the organized & unorganized 10 . Some companies absorbed higher input prices. 93. the FMCG sector in India is expected to grow at a compounded growth rate (CAGR) of 9% to a size of Rs. especially in small towns and rural India. the BSE FMCG index has. which could manage a growth of 41% only. A well established distribution network. because of which only the selected consumers moved up in the value chain. prices also increased. Sector’s Outlook FMCG is the fourth largest sector in the Indian Economy with a total market size of Rs. FMCG sector generates 5% of total factory employment in the country and is creating employment for three million people. even if on a very small base. The large format retail stores in metros also stimulated sales.Both these factors contributed to growth in 2006.1. while others were able to pass on the cost to the consumers. With a growth of 52. According to a CII – A T Kearney Report.5%.000 crores by 2010 from Rs.000 crores at present.000 crores.43. during the last 1 year outperformed the sensex.

toothpaste. low operating costs. such as health supplement. in the FY06. The sector's lack-luster performance in the last few years was due to price competition and increase in raw materials cost. The large consumer base. strong branding characterizes the market. as shown in table below: 11 .segments. particularly in rural sector. hair oils. and the growing middle class open up huge opportunities to FMCG companies to take the consumers to branded products and offer new generation products. However. and mosquito repellant. the sector has witnessed a double-digit growth in profits and revenues. The sector has registered an up trend in growth across categories. shampoo.

008 63.380 21.540 51.072 551. 2006 0% 23% Health -5% Supplement (Chyawanprash) Shampoo Toothpaste Hair Oils Mosquito Repellant 10% 5% 9% 13% 23% 6% 18% 10% 19% 16% 23% 29% Source: CII – A T Kearney Report.1% 45.2% 65.0% 27.241 2.746 Capitalization Enterprise Value Return Capital Employed (ROCE) P/E Ratio on 47.0% 17. (2000) Sector Financials 31-03-2006 Net Sales Sales Growth Profit Tax after 164.1% 26.971 PAT Growth Market 74.2006Sept.001 -24.7% 662.6% 31-03-2005 148.595 16.5% 21.810 645.196 10.Sales Value Growth % Categories 2004-2005 2005-2006 Apr.8% 19.477 In millions 31-03-2004 145.0% 12 .

500 crores in 2005 to Rs. FMCG sector is expected to grow by over 60% by 2010. female hygiene.2% of the world population in the villages of India. 92. Hindustan Levers Limited (HLL) has shown a healthy growth in the last quarter. Hair care.Source: CII – A T Kearney Report. For example. & the chocolates & confectionary categories are estimated to be the fastest growing segments. It has been estimated that FMCG sector will rise from around Rs. household care. Growth Prospects With the presence of 12.1 billion. An estimated double-digit growth over the next few years shows that the good times are likely to continue. 56. Though the sector witnessed a slower growth in 2002 – 04. (2000) Scope of the FMCG Sector The Indian FMCG sector has a market size of US $13. That will translate into an annual growth of 10% over a period of 5 years. male grooming.100 crores in 2010. the Indian rural FMCG market is something 13 . it has been to make a fine recovery since then. says an HSBC Report.

no one can overlook.e. rural India accounts for more than 40% consumption in major FMCG categories such as personal care. And if the companies are able to change the mindset of the consumers. would help the urban areas maintain their position in terms of consumption. household care and feminine hygiene. Increased focus on farm sector will boost rural incomes. Within the foods segment. Also. FMCG companies have immense possibilities for growth. increase in the urban population. will keep growing at relatively attractive rates. At present. FMCG sector is also likely to benefit from growing demand in the market. they would be able to generate higher growth in the near future. it is estimated 14 . along with increase in income levels and the availability of new categories. with rural India accounting for the remaining 34%. fabric care. boosting purchasing power in the countryside. home and personal care category. Better infrastructure facilities will improve their supply chain. the demand in urban areas would be the key growth driver over the long term. urban India accounts for 66% of total FMCG consumption. It is expected that the rural income will rise in 2007. including skin care. Because of the low per capita consumption for almost all the products in the country. and hot beverages. In urban areas. However. i. hence providing better growth prospects to the FMCG companies. if they are able to take the consumers to branded products and offer new generation products. However.

and dairy are long-term growth categories in both rural and urban areas. India is the largest producer of livestock. 2. spices and cashew and is the second largest producer of rice. coconut. which are required for the production of soaps and detergents.that processed foods. Indian Competitiveness and Comparison with the World Markets: The following factors make India a competitive player in FMCG sector: 1. sugarcane. bakery. India also produces caustic soda and soda ash. milk. The availability of these raw materials gives India the location advantage. wheat and fruits &vegetables. there is a large raw material base suitable for food processing industries. Labor cost comparison 15 . Availability of raw materials Because of the diverse agro-climatic conditions in India.

Low labor costs give the advantage of low cost of production. 3. India's labor cost is amongst the lowest in the world. after China & Indonesia. This brings India a more cost competitive advantage. Amul 16 .Low cost labor gives India a competitive advantage. For example. Presence across value chain Indian companies have their presence across the value chain of FMCG sector. Many MNC's have established their plants in India to outsource for domestic and export markets. right from the supply of raw materials to packaged goods in the food-processing sector.

17 . Nirma Ltd. Dabur India 6. Colgate-Palmolive (India) Ltd. 3. 4. etc. Britannia Industries 9. Procter & Gamble Hygiene & Health Care 10. Nestle India 4. Top Players in FMCG Sector 1. 2. Asian Paints (India) 7.supplies milk as well as dairy products like cheese. Tata Tea Ltd. Hindustan lever limited (HLL) 2. Marico Industries Secondary Players 1. GCMMF (AMUL) 5. butter. ITC (Indian Tobacco Company) 3. Cadbury India 8. Godrej Consumers Product Ltd.

She takes into consideration the study of National Council for Applied Economic Research (NCAER). the same is expected to grow from 65 million to 79 million. In some sense we can say that rural market is future of FMCG.5. H. She added the strategies of different FMCG companies for capturing rural market like Titan’s Sonata watches. Thus. suggested that the lifestyle of rural consumers is changing. different strategies of HUL and Marico etc. Coco Cola’s 200ml bottle. 1. Heinz Review of Literature Rural market is one of the best opportunities for the FMCG sector. Basu Purba (2004). the number of middle and high-income households in rural area is expected to grow from 140 million to 190 million by 2007. J. Parle Agro 6. In urban India. 18 . According to the NCAER projections. Rural Indian market and the marketing strategy have become the latest marketing buzzword for most of the FMCG majors. the absolute size of rural India is expected to be double that of urban India.

It was Hindustan Lever that several years ago popularized the idea of selling its products in tiny packages. Acceptability and Awareness provide us with a means of developing appropriate strategies to tackle the marketing issues for marketing telecom services in rural areas. The model is of the stolid Anglo-Dutch conglomerate Unilever Group. Tognatta Pradeep (2003). suggested that rural markets are an important and growing market for most products and services including telecom.5% in the industrial sector. which has enjoyed a century-long presence in India through its subsidiary Hindustan Lever Ltd. suggested that. 19 . the economic growth in India's agricultural sector in last year was over 10%. Affordability. Factors such as village psyche. strong distribution network and market awareness are few prerequisites for making a dent in the rural markets. This implies a huge market potentiality for the marketer to meet up increasing demand. Britannia with its low priced Tiger brand biscuits has become some of the success story in rural marketing.2. Aithal. compared with 8. Its sachets of detergent and shampoo are in great demand in Indian villages. K Rajesh (2004). The Bottom of the pyramid marketing strategies and the 4 A's model of Availability. The characteristics of the market in terms of low and spread out population and limited purchasing power make it a difficult market to capture. 3.

As per my concern of the research. Research objectives 20 . It will provide detail information about consumer preferences towards a good number of FMCG products which is too unique and different from those above researches.Successful cases like the Grameen Phone in Bangladesh and Smart Communications Inc in Philippines also provide us with some guidelines to tackling the issue. it is a detail study of different FMCG products used by rural consumers.

Research methodology 21 .• To understand the demand pattern of FMCG products in the rural market. • To know the amount of household income spent on the consumption of FMCG products. • To understand the image of the products in the eyes of the consumers.

school students.Data collection Sample unit: 1. 3. 2. 2. college students & senior citizens. 3. 4. 4. In these areas she can easily meet working people (both male & female). She has chosen GOMTI NAGAR. working people: 32% college students: 29% school students: 23% senior citizens: 16% Sampling region: 1. MAHANAGAR. which is given as follows: 22 . the Capital city of Uttar Pradesh as her area of study. 2. The population status of these areas can be shown in a tabulated manner. The researcher has selected LUCKNOW. working people (including men & women) college students school students senior citizens Sample size: 1. ALIGANJ as her areas of research.

She has chosen various areas that come under these areas. The areas covered by the researcher in Maha Nagar are Chandra Lok & Mahanagar Colony.nic. Vinamr Khand.12. The population statuses of these areas are: 23 .570 8. The researcher took school & college students as her sample unit.83.upgov. the population level of these areas are: Area Vishwas Khand Vipul Khand Vivek Khand Population 2.86.in/upinfo/census01/cen01-1.htm Note: As the examiner can see that the population of areas (areas that are chosen by the researcher) is very large.786 Source: Lucknow Development Authority Note: the researcher took these areas because these areas are near to various school & colleges. Vibhuti Khand . The areas covered by the researcher in Gomti Nagar are Viram Khand.97.640 Population is in approximate figures. therefore the researcher has stratified the area.768 2.93. Source: http://www.75.563 3.Area Gomti Nagar Mahanagar Aliganj Population 12.230 8.

Sampling procedure: The researcher will take stratified random sampling as the sampling procedure.34.863 3. 24 .683 Source: Lucknow Development Authority Note: The researcher took these areas because there are various schools & institutes nearby these places.89.84.Area Chandra Lok Mahanagar Colony Population 2.675 1. The areas covered by the researcher in ALIGANJ are Jankipuram & Sahara City.78. The population statuses of these areas are: Area Jankipuram Sahara City Population 2.986 Source: Lucknow Development Authority Note: The researcher took Aliganj as one of the areas for her study because she lives in jankipuram & it was quite easy for her to conduct the survey in that particular place.

internet. the survey is kept simple and user friendly. This questionnaire aims to gather information related to various Branded products. Also technical jargons are avoided to ensure that there is no confusion for respondents. journals. news papers. Words used in questionnaire are readily understandable to all respondent. Secondary data: it will be collected with the help of books. Research instruments: Questionnaire design: As the questionnaire is self administrated one. magazines. etc. Panoramic View 25 . Primary data: it will be collected with the help of a self administered questionnaire.Data collection method: 1. research papers. 2.

The bottom line is that Indian market is changing rapidly and is showing unprecedented regarding the choice of appropriate market 26 . any number of opportunities is available. India is also different in culture if compared with other Asian countries. different social customs & food habits categorize Indian consumer class. Several religious & personal beliefs. Besides this. Consumer goods marketers are often faced with a dilemma segment. increase in demand.India has a population of over 1 billion & 4 climatic Zones. 15 languages. presence of large number of young population. Therefore. Indian consumer goods market is expected to reach $400 billion by 2010. Consumer goods marketers’ experience that dealing with India is like dealing with many small markets at the same time. India has high distinctiveness in demand and the companies in India can get lot of market opportunities for various classes of consumers. In India they do not have to face this dilemma largely because rapid urbanization. India has the youngest population amongst the major countries. There are a lot of young people in India in different income categories.

potato chips Washin g Machin es TV 2 25 Market Share in % Indian Indian Compan MNCs Compan MNCs ies ies 1992 100 0 2004 52 48 6 35 100 0 37 63 40 570 3. As the restrictions on foreign investments were relaxed in 1991.consumer business opportunity.03 0 98 2 51 49 630 97 3 49 51 1992 $=30 rupees 2004 $=45 rupees Source: Center for Monitoring Indian Economy (CMIE) 27 . Market Size in $ million 15 1992 2004 Breakfa st cereals Wafers. Multi-National Companies have been entering India since then.

Geographical dispersion 28 . India is a big market for FMCG companies. Age demographics 4. The total number of rural households is expected to rise from 135 m in 2002 to 153 m in 2010. Around 70% of the total households in India reside in the rural areas. NCAER Indian consumer class can be classified according to the following criteria: 1.76 627. Rural and urban potential Urb Rural an Population 2001-02 (m household) Population 2009-10 (m household) % Distribution (2001-02) 53 69 135 153 28 72 3. which represents the largest potential market in the world.0 Market (Towns/Villages) 8 00 Source: Statistical Outline of India (2001-02).With a population of 1 billion people. Income 2. Socio-Economic status 3.

3. The real 29 . scenario for an international business because the purchasing power of currencies differs significantly. India's population can be divided into 5 groups on the basis of annual household income. 2. These groups are: 1.095 billion people. 5. comprising of 1/6th of the world population. Higher income Upper middle income Middle middle income Lower middle income Lower income The income classification does not represent a real 4.Income based classification India has a population of 1.

1 71. 6 7 Rs.6 90. 1622. 16. In addition to that.1 44 33 28. 2245. 215. income classification is not an effective tool to ascertain consumption and ownership trends in the economy.5 54.purchasing power of Indian rupee is higher than the international exchange value.2 2.9 54.6 74.000 Rs. .1 15. 180.000 and more Rs 45215.7 199. Consumer Classes The Rich The Consuming Class The Climbers The Aspirants The Destitute Total Annual 199 200 2001 Change Income in Rs.000 1.0 6.3 23.000 Below Rs.000 Rs.2 416% 179% 37% -65% -61% 21% 30 32.8 164. Consumer Classification According to National Council of Applied Economic Research (NCAER) there are 5 consumer classes that differ in their ownership patterns and consumption behavior across various segments of goods.4 12.

8 Source: NCAER 2 The 5 classes of consumer households (consumer classification) show the economic development across the country based on consumption trends. This is called as Socio-economic Classification (SEC). E1. D. Socio economic classification In addition to income classification and consumer classification. B1. The urban area is segregated into: A1. B2. SEC is made to understand the purchase behavior and the consumption pattern of the households. Indian households can also be segmented according to the occupation and education levels of the chief earner of the household (the person who contributes most to the household expenses). which is mainly used by market planners to target market before launching their new products. C. E2 31 . A2.

Socio-Economic Classification Occupati on Less than Illitera 4 yrs te in scho ol Skilled Unskilled Shop owner Petty trader Above E2 E2 D E2 E1 E2 D D Education 5-9 Som yrs School Poste Gradu of certific gradu colle ate scho ate ate ge ol D E1 C D C D B2 C C D B2 C B2 D A2 B2 B2 D A2 B2 Employer ofB1 B1 A2 A2 A1 A1 A1 32 .

constitutes 21% of the urban population Sections D & E refer to Low-class-.constitutes over a quarter of urban population Sec C refers to Middle-class-.constitutes over half the urban population To understand the table. consider an example: A trader whose monthly household income (MHI) is more than that of a person in section A cannot be included in this SEC because his educational qualification or occupations do not qualify him for inclusion. Sec C constitutes households whose Chief Wage Earners are employed as: Skilled workers 33% 33 .10 persons Below 10 persons None Clerk Supervis or Professi onal Senior executiv e Junior executiv e C D D D D B1 B2 C D D D B1 B2 B2 D C D B1 B1 B1 C C B2 B1 A2 A2 B2 B2 B1 A2 A1 A1 B1 B1 A2 A1 A1 A1 B1 A2 A1 A1 C C C B2 B1 A2 A2 Source: Indian readership survey (IRS) Sections A & B refer to High-class.

R3. R4. Bangalore.Petty traders Clerk/Supervisor Shop owners 12% 37% 18% 3/4th of them have studied till 10th or 12th class while the remaining 1/4th have studied till 9th class. while Skilled Workers are about 28%. Petty Traders are 18%. Those top 7 cities are Mumbai. Chennai. Ahmedabad. The rural area is segregated in to: R1. Kolkata. With increase in economic prosperity. Education of chief wage earner Pucca Profession al degree Graduation R1 R1 Type of House Semipucca R2 R2 Kuchcha R3 R3 34 . and Hyderabad. Less than half of the Chief Wage Earners of households belonging to sections D & E are unskilled workers. Delhi. R2. More than 80% of the population of upper strata consumers is living in the top 7 cities. this population (upper strata consumers) is growing at 10 percent annually.

The expenditure on essential goods and services has a higher share in 35 . Nearly two.thirds of its population is below the age of 35. Marketers explain that the boom in the consumption level and leisure related expenditure is because of this young population. There is huge potential for further consumption of goods and services due to the increased level of disposable income. it is expected that this will generate trade opportunities and continuous investment in the economy. It will have a significant impact over the consumer goods market. In addition to that. if compared with some advanced and developed countries. and nearly 50 % is below 25./ PG College SSC/HSC Class 4Class 9 Up to class 4 Selflearning Illiterate R1 R2 R3 R3 R3 R4 R2 R3 R3 R3 R4 R4 R3 R3 R4 R4 R4 R4 Age demographics India is a very young nation.

5 221.9% 0.68% 10.1 88.4 1996 119.2 122. and fuels) Clothing Footwear Medicare Transport & Communication Recreation.7 1094.developing countries as compared with that of developed countries.51% Less than 4% 3. power.3 101.4 279.5 233.1% 4. Education.0 246. and Culture Home Goods 45.7 1012.63% 4.2 90.25% Geographical dispersion 36 .7 224 178.5 239.25% 14.8 207.2 118.1 109.1 2001 108.2 Consumption Trends Food Essentials Essential Services (water. rent.7 934.1 239. Age distribution if Indian population (In Millions) Year/ Age Below 4 yrs 5-14 yrs 15-19 yrs 20-34 yrs 35-54 yrs 55 & above Total 2006 113.

and agricultural development. There are poor districts in many states. Analysis 37 . out of which 150 districts (category A) and next 150 districts (category B) account for 78% and 15% of the national market potential respectively. linked to the wealth creation from trade.There is large difference in economic prosperity levels among several states in India. India has 500 districts. industrial. Remaining 200 districts (category C) are backward and account for only 7% of national market potential. Category C districts have 40% of the geographical share. classified according to their market potential.

38 . DETTOL. the other brands (EXCEPT LUX. LUX. LIFEBUOY) covers 24% of the market share. the product of RECKITT BENCKISER with a market share of 22%. it could easily be concluded that LUX. the product of HUL covers 36% of the market share. the product of HUL with a market share of 18%. which is then followed by LIFEBUOY. Which soap u prefer to use? The reaction of people towards various SOAP brands can be tabulated in the following manner: Brands Percenta ge Lux 36 Dettol 22 Lifebuoy 18 others 24 In the survey that the researcher conducted. the product of HUL was highly in demand. After LUX.1. This is then followed by DETTOL.

Which pack u prefer to use? 39 .This data can be graphically explained with the help of the following bar graph: de ma nd o f so a p bra n ds 40 35 30 25 pe r ce nt a ge 20 15 10 5 0 br a nds lux de t t o l life buo y o t he rs 2.

40 . with below average household income. 56% consumers demand single pack. it was necessary for the researcher to distribute the consumers on the basis of their demand for the various packs of SOAP brands available in the market. the reaction of people towards various packs of SOAP can be tabulated in the following manner: Family pack (3 in 1) 44 Packs of soaps Percentage Single pack 56 In the survey that the researcher conducted. This classification can be done on the basis of the daily expenditure that people make.e. she tried to differentiate amongst people. average household income & above household income. 3 in 1 pack. However.In order to determine the income pattern of the consumers. 44% consumers demand family packs i.

Which tea u prefer to use? 41 .This data can be graphically explained with the help of the following bar graph: d e m a n d o f p a c ks o f s o a p 60 50 40 p e r c e n t a3 0 ge 20 10 0 p a c ks pr e fe r r e d b y customers s in g le p a c k fa m ily p a c k ( 3 in 1 ) 1.

BROOKE BOND. This is finally followed by TAJ MAHAL. BROOKE BOND. TAJ MAHAL) with a market share of 22%.The reaction of people towards various TEA brands can be tabulated in the following manner: Brooke Bond 28 Brands Percenta ge Tata Tea 32 Taj Mahal 18 Others 22 In the survey that the researcher conducted. the product of HUL which holds18% of the market share. it could easily be concluded that TATA TEA. Followed by other brands (EXCEPT TATA TEA. 42 . the product of TATA has a market share of 32%. This is followed by. with a market share of 28%.

This data can be graphically explained with the help of the following bar graph: dem and of tea brands 35 30 25 20 pe rce nta ge 15 10 5 0 bra nds tata tea b ro o ke bo n d taj mahal othe rs 43 .

2. she tried to differentiate amongst the people. it was necessary for the researcher to distribute the consumers on the basis of their demand for the various packs of TEA brands available in the market.20% consumers demand large pack. 32% consumers demand medium pack. 44 . This classification can be done on the basis of the daily expenditure that people make. Which tea pack u prefer to use? In order to determine the income pattern of the consumers. it can be concluded that sachets are most commonly used by the people .e.. However. the reaction of people towards various TEA packs can be tabulated in the following manner: Medium pack 32 TEA packs percentage Sachet 48 Large pack 20 In the survey that the researcher conducted. 48% consumers demand sachet packs. However. average household income & above household income.i. with below average household income.

This data can be graphically explained with the help of the following diagram: d e m a n d o f t e a p a c ks 50 40 30 pe rcenta ge 20 10 0 p a c ks p r e fe r r e d b y c u s t o m e r s sachet m e d iu m p a c k la r g e p a c k 45 .

it could easily be seen that COLGATE. the preference of consumers towards toothpaste has been changed. which covers 16% of the total market share.3. 46 .UP). Which tooth paste u prefer to use? In the initial years. datoons etc. the product of HUL is demanded by the customers. which covers 22% of the market share. Which is then followed by others brands (EXCEPT PEPSODENT. which covers 27% of the market share. COLGATE. Followed by CLOSE – UP. However. the product of HUL is demanded by the customers. the reaction of people towards various TOOTH PASTES can be tabulated as follows: Pepsoden t 27 Brands Percenta ge Colgate 35 Close Up 22 Others 16 In the survey that the researcher conducted. PEPSODENT. the rural consumers preferred tooth powders. which covers 35% of the total market. But from the last decade. After that. the product of COLGATE PALMOLIVE is the market leader. CLOSE . A huge number of toothpastes of different companies are sold in rural market.

This data can be graphically explained with the help of the following bar graph: dem and of tooth paste 35 30 25 20 pe rcenta ge 15 10 5 0 bra nds pepsodent c o lg a t e c lo s e u p othe rs 47 .

48% consumers demand medium packs. Which pack u prefer to use? In order to determine the income pattern of the consumers. she tried to differentiate amongst the people. it can be concluded that 34% consumers demand small packs.4. the reaction of people towards various TOOTH PASTE packs can be tabulated in the following manner: Tooth paste pack Percentage Medium pack 48 Small pack 34 Family pack 18 In the survey that the researcher conducted. with below average household income. 48 . 18% consumers demand large pack. However. average household income & above household income. it was necessary for the researcher to distribute the consumers on the basis of their demand for the various packs of TOOTH PASTE brands available in the market. However. This classification can be done on the basis of the daily expenditure that people make.

This data can be graphically explained with the help of the following graph: d e m a n d o f p a c ks o f to o th p a s te 50 40 30 pe rcenta ge 20 10 0 p a c ks p r e fe r r e d b y c u s t o m e r s s m a ll p a c k m e d iu m p a c k f a m ily p a c k 49 .

This is followed by TIDE. This is finally followed by other brands (EXCEPT SURF. the product of PROCTER & GAMBLE which has a market share of 27%. This is followed by SURF. 50 . it could be easily concluded that RIN. RIN.5. TIDE) which captures 16% of the market share. Which detergent u prefer to use? The reaction of people towards various DETERGENT brands can be tabulated in the following manner: Brands Percenta ge Surf 27 Rin 35 Tide 22 Others 16 In the survey that the researcher conducted. the product of HUL captures 35% of the total market share. the product of HUL which has a market share of 27%.

This data can be graphically explained with the help of the following bar graph: dem a nd o f deterge nts 35 30 25 20 pe rce nta ge 15 10 5 0 brands surf r in t id e others 51 .

However. However. average household income & above household income. it was necessary for the researcher to distribute the consumers on the basis of their demand for the various packs of DETERGENT brands available in the market. 30% 52 . with below average household income. she tried to differentiate amongst the people. This classification can be done on the basis of the daily expenditure that people make. the reaction of people towards various DETERGENT packs can be tabulated in the following manner: Detergent packs Percentage Medium pack 27 Sachet 43 Family pack 30 In the survey that the researcher conducted. Which pack u prefer to use? In order to determine the income pattern of the consumers. 43% consumers demand sachet packs.6.

27% consumers demand medium packs.consumers demand family packs. This data can be graphically explained with the help of the following bar graph: 53 .

Which shampoo u prefer to use? The reaction of people towards various SHAMPOO brands can be tabulated in the following manner: 54 .de m a nd o f de te rge n t p a cks 45 40 35 30 25 pe rcenta ge 20 15 10 5 0 sachet m e d iu m p a c k f a m ily p a c k p a c ks p r e fe r r e d b y c u s t o m e r s 7.

This data can be graphically explained with the help of the following bar graph: 55 . that the researcher conducted it can easily be concluded that CLINIC PLUS. This is followed by HEAD & SHOULDERS. HEAD & SHOULDERS) with a market share of 14%. the product of HUL.Brands Percenta ge Clinic plus 33 Sunsilk 25 Head & shoulders 28 Others 14 In the survey. the product of PROCTER & GAMBLE which holds 28% of the market share. the product of HUL which holds 25% of the market share. Finally followed by other brands (EXCEPT CLINIC PLUS. SUNSILK. This is followed by SUNSILK. captures the major portion of the market with a market share of 33%.

demand of shampoo 35 30 25 20 pe rce nta ge 15 10 5 0 brands c lin ic p lu s s u n s ilk h e a d & s h o u ld e r s others 8. Which pack u prefer to use? 56 .

the reaction of people towards various SHAMPOO packs can be tabulated in the following manner: Shampoo packs Percenta ge Small pack 32 Medium pack 28 Family pack 17 sachet 23 In the survey that the researcher conducted. she tried to differentiate amongst the people. 17% consumers demand large packs. However. 57 . This classification can be done on the basis of the daily expenditure that people make. average household income & above household income. 32% consumers demand SMALL PACK. it was necessary for the researcher to distribute the consumers on the basis of their demand for the various packs of SHAMPOO brands available in the market.In order to determine the income pattern of the consumers. However. with below average household income. 28% consumers demand medium pack.

This data can be graphically explained with the help of the following bar graph: d e m a n d o f s h a m p o o p a c ks 35 30 25 20 pe rcenta ge 15 10 5 0 p a c ks p r e fe r r e d b y c u s t o m e r s sachet s m a ll p a c k m e d iu m p a c k la r g e p a c k 58 .

Which biscuits u prefer to use? The reaction of people towards various BISCUITS brands can be tabulated in the following manner: Marie gold 24 Brands Percenta ge Good Day 38 Parle G 21 Others 17 In the survey. it can easily be concluded that GOOD DAY. This is followed by other brands (EXCEPT MARIE GOLD. another product of BRITANNIA which holds 24% of the market share.9.G. PARLE. 59 . GOOD DAY. After that. the product of BRITANNIA holds a major market share of 38%. holds 21% of the market share. that the researcher conducted.G) which hold a market share of 17%. PARLE. the product of PARLE. This is followed by MARIE GOLD.

This data can be graphically explained with the help of the following bar graph: d e m a n d o f b is c u it s 40 35 30 25 p e r c e n t2a0g e 15 10 5 0 brands m a r ie g o ld good day p a r le G others 60 .

the product of DABUR which captures 29% of the total market share. DABUR VATIKA) captures 15% of the market share. 61 . which hair oil u prefer to use? The reaction of people towards various HAIR OIL brands can be tabulated in the following manner: Parachut e 37 Dabur Amla 29 Dabur Vatika 19 Brands Percenta ge Others 15 In the survey. another product of DABUR which captures 19% of the market. DABUR AMLA.10. that the researcher conducted. followed by other brands (EXCEPT PARACHUTE. the product of MERICO captures 37% of the total market share. it can easily be concluded that PARACHUTE. This is followed by DABUR AMLA. This is followed by DABUR VATIKA. And after that.

This data can be graphically explained with the help of the following bar graph: d e m a n d o f h a ir o il 40 35 30 25 p e r c e n t a0 g e 2 15 10 5 0 brands parachute d a b u r a m la d a b u r v a t ik a others 62 .

27% consumers demand large packs. 32% consumers demand small pack. the reaction of people towards various HAIR OIL packs can be tabulated in the following manner: Hair oil Small pack 32 Medium pack 41 Large pack 27 packs Percentage In the survey that the researcher conducted. However. she tried to differentiate amongst the people. Which pack u prefer to use? In order to determine the income pattern of the consumers. average household income & above household income. 41% consumers demand medium packs.11. with below average household income. it was necessary for the researcher to distribute the consumers on the basis of their demand for the various packs of HAIR OIL brands available in the market. This classification can be done on the basis of the daily expenditure that people make. However. 63 . After that.

This data can be graphically explained with the help of the following bar graph: d e m a n d o f p a c k s o f h a ir o il 45 40 35 30 25 pe rcenta ge 20 15 10 5 0 s m a ll p a c k m e d iu m p a c k la r g e p a c k p a c ks p r e fe r r e d b y c u s t o m e r s 64 .

POND’s.12. that I conducted. POND’s. which holds 28% of the market share. the product of HUL. 65 . holds the major market with a share of 32%. the brand of AYUR ACADEMY OF NATURAL BEAUTY (AANB) which holds 14% of the total market share. Which cream u prefer to use? The reaction of people towards various CREAM brands can be tabulated in the following manner: Fair & lovely 32 Brands Percenta ge Pond’s 28 Ayur 14 Others 26 In the survey. FAIR & LOVELY & AYUR). it can easily be concluded that FAIR & LOVELY. another product of HUL. This is followed by AYUR. This is followed by. which captures 26% of the market share. other brands (EXCEPT. This is followed by.

This data can be graphically explained with the help of the following bar graph: 66 .

demand of cre ams 35 30 25 20 pe rcenta ge 15 10 5 0 brands ponds f a ir & lo v e ly ayur others 13. Which coffee u prefer to use? The reaction of people towards various COFFEE brands can be tabulated in the following manner: 67 .

A.. another product of NESTLE S. This data can be graphically explained with the help of the following bar graph: 68 . While the other brands hold only 10% of the market share. the product of HUL which holds. that the researcher conducted. it can be easily concluded that all the brands are facing tough competition.A.Brands Percenta ge Bru 26 Nestle 32 Nescafe 32 Others 10 In the survey. shares equal market share of 32% each. 26% of the market share. NESTLE. This is followed by BRU. & NESCAFE. the product of NESTLE S. This means that they are in a very tough competition.

d e m a n d o f c o ffe e 35 30 25 20 pe rcena tge 15 10 5 0 brands bru n e s t le n e s c a fe othe rs Conclusions In this report. 69 . It holds major shares in the soap. detergent. it can very easily be concluded that HUL. holds major portion of the FMCG market.

consumers do get brand loyal. As in the case of BISCUITS. medium & large). BRITANNIA holds the major market share. In the case of TEA. However. because they provide these products in different packs. because they do not want to take a risk with their tastes. These organizations supply 70 . large or family packs are still been bought by few consumers. NESTLE & NESCAFE holds the major share. Rural consumers favor BRITANNIA because it is an old organization & it has gained a lot of BRAND EQUITY which finally creates BRAND LOYALTY. So. Rural consumers favor TATA because it is an old organization & it has gained a lot of BRAND EQUITY which finally creates BRAND LOYALTY. consumers do get brand loyal. TATA holds a major share. considering the buying capacity of their consumers. They consider the fact that rural consumers do not have that much money to be spent on these products. So they prefer sticking to one brand. HUL’s products are mainly in demand. they prefer buying the small or the medium packs. In the case of COFFEE. In these products.shampoo & cream’s category. because they do not want to take a risk with their tastes. In case of BISCUITS. who are from a well – off families. So they prefer sticking to one brand. These organizations supply their products in various packs (small.

MERICO holds the major market share. Consumers are very concerned about their health. Consumers have confidence & trust in their product. So it is a known product. medium & large). Therefore. COLGATE PALMOLIVE holds a major market share. so if any product suits them they prefer sticking to that product. they prefer buying it. so rural consumers can use it according to their buying capacity. In the case of TOOTH PASTES. considering the buying capacity of their consumers. In the case of HAIR OILS.their products in various packs (small. MERICO is a much known organization & its product PARACHUTE has reached all the places. 71 . which has created a good amount of goodwill for the organization. And this product is also available in various packs.

because in the introduction stage. so that the organizations can easily sell their products to their consumers: 1. There is immense competition in this sector. 6. 3. the demand of a product is also affected by its life cycle. They should adapt rigorous marketing strategies. If the product is in the introduction stage. For the organizations that are not much popular amongst the consumers. 5. in order to sustain in the market. the organizations should try to gain competitive advantage against their competitor’s. 72 . 2. Therefore. They should try to reach as many people as possible. Application of 4A’s has also become an important task for all the organizations.Suggestions & recommendations The researcher would like to suggest the following points. Therefore. consumers are not much aware about the product. should adopt Sales Promotion. However. 4. as their marketing strategies. it’s the responsibility of the organization to create awareness amongst the consumers. then it will definitely take some time to capture the market.

(*4A=

Availability,

Affordability,

Acceptability,

Awareness)

References 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.
Kearney, A T, CII – Report, (2000) Purba basu, research on living style of rural consumers, (2004), pg. no. 5-8. Tognatta Pradeep, economic growth on agriculture sector, (2003), pg no. 6-10. Aithal K Rajesh, importance & growth of rural markets, (2004), pg no. 8-12. Center for Monitoring Indian Economy (CMIE) Statistical Outline of India (2001-02), NCAER National Council of Applied Economic Research (NCAER) Indian readership survey (IRS) http://www.upgov.nic.in/upinfo/census01/cen011.htm Lucknow Development Authority http://www.naukrihub.com/india/fmcg/overview/ http://www.naukrihub.com/india/fmcg/

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13. 14. 15. 16. 17. 18. 19.

http://www.naukrihub.com/india/fmcg/consumerclass/ http://www.naukrihub.com/india/fmcg/consumerclass/income/ http://www.naukrihub.com/india/fmcg/consumerclass/socio-economic/ http://www.naukrihub.com/india/fmcg/consumerclass/age/ http://www.naukrihub.com/india/fmcg/consumerclass/geography/ http://en.wikipedia.org/wiki/Fast_moving_consume r_goods *4A= Availability, Affordability, Acceptability, Awareness

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Questionnaire 1. name: 2. occupation: 3. monthly salary: a. less than 10,000 b. 10,000 – 25,000 c. 25,000 – 50,000 d. More than 50,000 4. address: 5. phone no.: 6. which soap u prefer to use? a. Lux b. dettol c. lifebuoy d. others 7. which pack u prefer to use? a. single b. family pack ( 3 in 1) 8. which tea u prefer to use? a. tata tea b. brooke bond c. taj mahal d. others

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medium pack c. b. which shampoo u prefer to use? clinic plus sunsilk head & shoulders others which pack u prefer to use? 14. c. a. family pack a. d. which tooth paste u prefer to use? pepsodent colgate close – up others which pack u prefer to use? a. 11. large pack 10. d. sachet b. 13. which pack u prefer to use? a. which detergent u prefer to use? surf rin tide others 12.9. c. sachet b. which pack u prefer to use? a. medium pack c. d. medium pack c. 15. c. small pack b. large pack a. b. 76 . b.

d. which cream u prefer to use? ponds fair & lovely ayur others which coffee u prefer to use? bru nestle Nescafe others 19. sachet small pack medium pack large pack 16. a. b. c. 20. large pack a. c. d. c. 77 . b. b. a. 18. c. d. 17. which biscuits u prefer to use? marie gold good day parle . d.G others which hair oil u prefer to use? parachute dabur amla dabur vatika others which pack u prefer to use? a.a. c. b. medium pack c. a. small pack b. b. d.

78 .

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