AMITY GLOBAL BUSINESS SCHOOL-MUMBAI

SUMMER ASSIGNMENT PROJECT ON

MARKETING STRATEGY IN FMCG INDUSTRY

CASE:- GODREJ NATURE’S BASKET

SUBMITTED BY:

KAUSTUBH SHRIVASTAVA

A30206416034

BBA (2016-19)

UNDER THE GUIDANCE OF

PROF. Y. NISHA

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DECLARATION

I ,Kaustubh Shrivastava,a student of Amity Global Business School, Mumbai, hereby declare
that I have done the Summer Internship Project at Godrej Nature’s Basket, Mumbai on
“Marketing Strategy in FMCG at Godrej Nature’s Basket from 4th June 2018 to 31st July 2018
.

I have done this project under the guidance of Prof.Y Nisha

The information of this Project is original and true to the best of my knowledge.

Kaustubh Shrivastava

Signature of Guide:

Prof.Y Nisha

Date:

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ACKNOWLEDGEMENT
 

The success and final outcome of this project required a lot of guidance and assistance from
many people and I am extremely privileged to have got this all along the completion of my
project. All that I have done is only due to such supervision and assistance and I would not
forget to thank them.

I respect and thank Mr.Abhishek Rao, for providing me an opportunity to do the project work
in Godrej Nature’s Basket and giving all support and guidance which made me complete the
project duly. I am extremely thankful to him for providing such a nice support and guidance,
although he had busy schedule managing the corporate affairs.

I owe my deep gratitude to our project guide Prof.Y Nisha , who took keen interest on our
project work and guided us all along, till the completion of our project work by providing all
the necessary information for developing a good system.

I am thankful to and fortunate enough to get constant encouragement, support and guidance
from my institute Amity Global Business School, for inculcating in me the management
knowledge and skills and then providing me the best opportunity to apply and update my
knowledge and skills.

 Kaustubh Shrivastava

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4
 TABLE OF CONTENTS

SR.No. PARTICULARS PAGE NO.

Chapter 1 INTRODUCTION

1.1 What is FMCG Industry

1.2FMCG Companies in India

1.3What is Marketing Strategy

1.4Marketing Strategies in FMCG Companies

1.5Company Profile

1.5.1Marketing Strategies in Godrej Nature’s Basket

1.6Aims and Objectives of Study

Chapter 2 Literature Review

Chapter 3 Research Methodology

3.1Research Design

3.2Sampling

3.3Limitation of Study

Chapter 4 Data Interpretation & Analysis

Chapter 5 Conclusion

Chapter 6 Recommendation & Suggestion

Bibliography
Annexure

Chapter1 INTRODUCTION
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1.1 What is FMCG Industry

Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that
are sold quickly and at relatively low cost. Examples include non-durable goods such as
packaged foods, beverages, toiletries, over-the-counter drugs and many other consumables.[1]
[2]
In contrast, durable goods or major appliances such as kitchen appliances are generally
replaced over a period of several years.

Many fast moving consumer goods have a short shelf life, either as a result of high consumer
demand or because the product deteriorates rapidly. Some FMCGs, such as meat, fruits and
vegetables, dairy products, and baked goods, are highly perishable. Other goods, such as pre-
packaged foods, soft drinks, chocolate, candies, toiletries, and cleaning products, have high
turnover rates. The sales are sometimes influenced by holidays and seasons.

Packaging is critical for FMCGs. The logistics and distribution systems often require
secondary and tertiary packaging to maximize efficiency. The unit pack or primary package
is critical for product protection and shelf life and also provides information and sales
incentives to consumers.

Though the profit margin made on FMCG products is relatively small (more so for retailers
than the producers/suppliers), they are generally sold in large quantities; thus, the cumulative
profit on such products can be substantial. FMCG is a classic case of low margin and high
volume business.

Fast Moving Consumer Goods (FMCG) is the 4th largest and one of the fastest growing
sectors in the Indian economy. In 2016-17, FMCG revenues reached USD 49 billion.

Demographic Trend Size of the Indian population, rising incomes and changing lifestyle.

Growth in modern retail Increased level of brand consciousness is leading to a fall in the
share of ehaviord market in the FMCG sector.

E-commerce Grofers, Big Basket, Nature’s Basket, Reliance SMART.

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E-tailing on Jabong, Flipkart, Amazon for easier access to products.

Rural Consumption Growing rural markets led by a combination of increasing income and
higher aspirations.

New Categories Young brands: Paperboat (beverages), Epigamia (greekyogurt), Mojo

(snacking bar), Raw Pressery (cold-pressed juices), Mcaffeine and AVA (beauty), Cambay
Tiger (seafood), Sresta Natural Bioproducts (organic ingredients), Slurrp Farm, Snackible
(snacks)

Key Statistics

India’s FMCG market is expected to grow at a CAGR of 20.6% to reach US$103 billion by
2020.

According to IBEF Report of 2017, aggregate financial performance of the leading 10 FMCG
companies over the past 8 quarters displays that the industry has grown at an average 16-21%
in the past two years.

Household and Personal Care is the prominent segment and accounts for 50% of the overall
market share followed by Healthcare (23%), and Food and Beverages (19%).

Urban segment contributed US$29 billion (60%) to the overall revenue in 2016-17. Semi-
urban and rural segments also continue to grow at a rapid pace.

Government Initiatives / Action

In Sep 2016 NITI Aayog announced that the Government is working towards bringing retail,
FMCG and e-commerce within a single policy framework.

As per the Amended Metrology Rules (July 2017), which aim to foster greater transparency,
enhance consumer protection and bring more parity between online and offline retail spaces,

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ecommerce companies will be required to declare expiry dates and maximum retail prices of
packaged consumer products online. The amended rules (related to uniform pricing of
identical products, declaration of ‘best before’ and ‘use by’ dates, and mandatory declarations
by e-commerce entities) will come into effect from January 1, 2018.

A Food Regulatory Portal has been introduced to serve as a single interface. It would focus
onfood standards, codified food safety practices, hassle-free food imports, consistent
enforcementand credible food testing.

Foreign Direct Investment (FDI)

100% FDI is allowed in food processing and single-brand retail and 51% in multi-brand
retail. The minimum capitalization for foreign companies to invest in India is US$100
million. Between April 2000 and March 2017 FMCG sector witnessed FDI inflow of
US$11.84 billion.

Within FMCG, food processing was the largest recipient with a share of 63.73%. Some
recent deals are:

Oct 2017 Ready-to-cook food brand Fingerlix raised US$7 million in Series B funding by
Accel Partners and Zephyr Peacock.

Sept 2017 Baby and mothercare brand, Mamaearth, raised a second round of funding of
US$1 million led by Fireside Ventures and other individuals.

Feb 2017 Britannia announced a joint venture with Greek baker,Chipita, to produce bakery

items.

Jan 2017 Schreiber Dynamix Dairies, a subsidiary of American Schreiber International,

opened an infant nutrition ingredient plant in Baramati, Maharashtra.

June 2016 Cremica Food raised US$15 million from Rabo Equity Advisors Pvt Ltd, by
selling a minority stake.

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May 2016 Maiyas Beverages and Foods raised US$30 million from Peepul Capital.

Impact of GST on FMCG Sector

Introduced on July 1, 2017 GST is expected to infuse greater overall efficiency and create a
level-playing field for the larger, established players. For most FMCG majors, the GST rate
structure is likely to be neutral or marginally positive, as their broad portfolios will witness a
mixed impact. The firms which were aiming at introducing premium products to drive
profitability, may experience a negative impact because of the higher taxes. Several may
consider new strategies and realignment of portfolios.

GST rate reductions are being progressively implemented and many important raw materials
required in the food processing industry are exempted. The highest tax rate of 28% is
restricted to fewer items, including luxury, cement, paints, white goods and demerit goods
like pan masala, cigars and cigarettes, aerated water and beverages.

Industry Opportunity

In 2015 the market size of the ehavior FMCG sector was 9% of the overall ehavior retail
market. It is expected to reach 30% by 2020. A CII-BCG report suggests fundamental shifts
towards premium products, e-commerce, Tier II/III area driven growth etc. Health and
wellness is a prominent influencer in shaping consumer preferences and shopping habits;
demand for Organic, Ayurveda and other specialty products is on the rise. There is also a
focus on improving packaging and designing of products to enhance experiences and shelf
life, and reduce costs.

With the emergence of e-commerce and digital connectivity, rural distribution is expanding.
Partnerships with e-commerce players stand to gain. In order to maintain competitive
advantage, there is emphasis on achieving high supply chain effectiveness through
upstream/downstream partnership, revenue sharing etc. (ANI-Newsvoir

1.2FMCG Companies in India

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In the year 2005, the FMCG Market in India was growing at a rapid rate of 5.3 percent. The
value of the industry stood at Rs. 48,000-crore in the same year.

Currently the FMCG Market in India is one of the biggest and is growing at a rapid rate of
almost 60 per cent. Despite the economic downturn the FMCG Market in India currently
stands at Rs.85,000 crore. The phenomenal growth of the FMCG industry especially in the
tier II and tire III cities in India is mostly due to the improvement in the standard of living of
the people of such cities and the rise in the level of disposable income. Over the last few
years companies like Dabur, HUL and ITC have managed to change the face of the FMCG
industry in India by using cutting edge technology in production and a very strong
distribution channel. Companies like Colgate Palmolive and Britannia have also managed to
penetrate into the urban areas of the country.

The FMCG sector in India happens to be the fourth largest in the world. According to experts
this industry will reach US$ 33.4 billion by 2015. Both the organized and the unorgaganized
sectors are largely responsible for the success of the Indian FMCG industry. The Indian
FMCG market also has a well defined and established distribution network that makes
products available even in the most urban areas of the country

The components of the FMCG Market in India are:-

Cosmetics
 This is one of the most popular segments. This includes products like color cosmetics
(lip, eye, face, and nail care products), talcum powder, perfumes, and deodorants.
Toiletries
 Toiletries are an essential part of the human life. These products are classified as oral
care products, hair care products, skin care products, personal wash products, etc.
Detergent
 The detergent market is mainly concentrated in the urban areas but the level of
penetration in the rural for the past few years has been good.

Shoe Polish

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  The shoe polish market is worth around Rs 110 crores, out of which the kirana stores
are worth around 80 crores.
Ice Cream
 In India, the per capita consumption of ice cream is extremely low, around 300 ml per
annum, in 2010, in comparison to that the international per capita consumption is
around 2 liters.
Packaged Food
 This is an important part of the food processing industry in India, as convenient foods
have become an essential part of the middle class kitchen.
Chocolate
 The volume of chocolate produced in India in a year is around 30,800 tons. Chocolate
Market in India is concentrated in the urban areas.

Key Companies

In 2016, some of the leading Indian FMCG companies, by revenue, were

Companies Revenue (FY2016) PAT (FY2016)

ITC (Indian Tobacco Company) US$5.94 billion US$1.51 billion

Hindustan Unilever Ltd US$4.92 billion US$628 million

Nestle India US$1.26 billion US$140 million

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Britannia Industries US$1.22 billion US$115 million

Dabur US$884.62 million US$144.54 million

Patanjali Ayurved US$769.23 million US$86.4 million

Godrej Consumer Products US$740.24 million US$113.8 million

Colgate-Palmolive India US$640.35 million US$88.69 million

1.3 What is Marketing Strategy

Marketing strategy is a long-term, forward-looking approach to planning with the

fundamental goal achieving a sustainable competitive advantage.[1] Strategic planning
involves an analysis of the company’s strategic initial situation prior to the formulation,
evaluation and selection of market-oriented competitive position that contributes to the
company’s goals and marketing objectives.[2]

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Strategic marketing, as a distinct field of study emerged in the 1970s, and built on strategic
management that preceded it. Marketing strategy highlights the role of marketing as a link
between the organization and its customers.

At its most basic level, strategic marketing addresses three deceptively simple questions: (1)
Where are we now? (2) Where are we going? And (3) How are we going to get there? In
attempting to answer these questions, strategic planners require sophisticated skills in both
research and analysis.

Definitions of marketing strategy

Scholars continue to debate the precise meaning of marketing strategy. Consequently, the
literature offers many different definitions. On close examination, however, these definitions
appear to centre around the notion that strategy refers to a broad statement of what is to be
achieved.

Marketing Strategy is:

“The marketing strategy lays out target markets and the value proposition that
will be offered based on an analysis of the best market opportunities.” (Philip
Kotler & Kevin Keller, Marketing Management, Pearson, 14th Edition)

“An over-riding directional concept that sets out the planned path.” (David
Aaker and Michael K. Mills, Strategic Market Management)

“Essentially a formula for how a business is going to compete, what its goals
should be and what policies will be needed to carry out these goals.” (Michael
Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors)

“The pattern of major objectives, purposes and goals and essential policies and
plans for achieving those goals, stated in such a way as to define what business
the company is in or is to be in”. (S. Jain, Marketing Planning and Strategy, 1993)
“An explicit guide to future ehavior.” (Henry Mintzberg, “ Crafting Strategy,”
Harvard Business Review)

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1.4 Marketing Strategies in FMCG Companies

Some of the major strategies adopted by FMCG companies for making their brands
outstanding compared to competitions are as follows: (i) Multi-brand Strategy (ii) Building
Product Lines (iii) New Product Development (iv) Product Life Cycle Strategy

The success of an FMCG depends greatly on its marketing strategy. An FMCG marketer
pursues a wide combination of strategies. For instance, when prices are competitive, the
company would use an extensive distribution network, design suitable advertising and sales
promotion schemes from time to time.

1) Multi-brand Strategy

Marketing of more than two competing and almost identical products, that

belongs to a single organization and is filled under different and unrelated
brands, is called multi-branding. The core idea of multi-brand strategy is to
increase the overall market share.

Due to the fact, that it’s almost impossible for a single brand to reach and
maintain the variation that market segmentation offers, diversifying and applying
multi-brand strategy to maximize the relevance to the customers is a practical
thing to do.

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 Example:-

2) Building Product Lines

A product line is a group of related products under a single brand sold by the
same company. Companies sell multiple product lines under their various
brands. Companies often expand their offerings by adding to existing product
lines, because consumers are more likely to purchase products from brands with
which they are already familiar.
Product lines are created by companies as a marketing strategy to capture sales
of consumers already buying the brand. The operating principle is that
consumers are more likely to respond positively to brands they know and love
and are willing to buy the new products based on their positive experiences with
the brand.

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 Example:-

3) New Product Development:

In business and engineering, new product development (NPD) covers the

complete process of bringing a new product to market. A central aspect of NPD
is product design, along with various business considerations. New product
development is described broadly as the transformation of a market opportunity
into a product available for sale. The product can be tangible (something
physical which one can touch) or intangible (like a service, experience, or
belief), though sometimes services and other processes are distinguished from
“products.” NPD requires an understanding of customer needs and wants, the
competitive environment, and the nature of the market. Cost, time and quality
are the main variables that drive customer needs. Aiming at these three variables,
companies develop continuous practices and strategies to better satisfy customer
requirements and to increase their own market share by a regular development of
new products. There are many uncertainties and challenges which companies
must face throughout the process. The use of best practices and the elimination

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 of barriers to communication are the main concerns for the management of the
NPD .
Example:-

4) Product Life Cycle Strategy

The product lifecycle, in a marketing context, is all the stages of a product’s life span that are
related to its promotion and sales. 

The marketing lifecycle is traditionally broken down into four stages: introduction, growth,
maturity and decline. 

1. In the introduction stage, the product is released to the market; pricing and branding
decisions are made and marketing begins. 

2. In the growth stage, vendors work to increase brand recognition and market share. 

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3. In the maturity stage, market saturation has been achieved. The attempt is to maintain
market share. Once sales begin to decrease, extension strategies may be employed to try
to keep the product in the maturity stage. 

4. Otherwise, the product is in its decline stage and an exit strategy may be set in motion. 

Example:-

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1.5 ABOUT GODREJ NATURE’S BASKET

Company Profile

Godrej Nature’s Basket is a neighbourhood grocery and fresh food store. It is a venture of the
Godrej Group (Parent Company).

Industry Food & Grocery

Founded 2005

Products Fruits & Vegetables, Indian Grocery, Snacks & Beverages, Cheese,
Eggs & Meat, Confectionary& Patisserie, Gift Hampers
Revenue 340 crore

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In- House Brands

Godrej Nature Basket has Five Brands under its name for exotic and organic produce.

1. Desi Nature

2.Get Nature’s Best

3.World Chef

4.L’Exclusif

5.Healthy Alternatives

Launched the Healthy Alternative Brand in Mumbai on 27th September 2016.

Godrej Nature’s Basket was founded in 2005 as a “world food store” and now operates 35
physical stores in cities such as Mumbai, Delhi, Bengaluru, Pune and Hyderabad.

The retail chain sells fresh vegetables, fruits, cold cuts, meats, cheese, organic foods and
diary products.

Currently, it operates as an online grocery store and mobile app platform which caters to 125
cities across India.

Nature Basket acquired Mumbai based online grocery store Ekstop.com in 2015 to
strengthen online presence across 125 cities in India. Nature Basket is planning to open up
70 stores in the financial Year 2021 and also eyeing revenues worth 1,000 crore by 2022.

Every item in the assortment is handpicked from the very best that Europe, Australia, Asia,
and the United States have to offer. It caters to the redefined needs of up-market urban
consumers for irresistibly authentic world food and ingredients.

GNB plans to invest over 100 crore for transforming and doubling its stores in West and
South India.

GNB is a subsidiary of Godrej Industries and competes in gourmet retailing with formats
like FoodHallI(Future Group ) and Gourmet West (Tata Group company)

Rather than entering new markets in the North and East, it is expanding existing markets will
be enhanced , from the current strength of 35 stores across cities like Mumbai and Banglore.

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Godrej Nature’s Basket is India’s pioneering food destination from the 119-year young
Godrej Group. Our beginnings were humble – what started in 2005 as a single store in
Mumbai has now transformed itself into an omni-channel retail business. We are present
through physical retail stores across India in neighborhoods, this combined with an online
portal and a mobile application.

Company’s aim is to redefine India’s freshest and finest food experience and be the go-to
place for our customer’s ‘Daily Food Delights’. Be it the freshest fruits & vegetables, the
finest meats, wide array of cheese, irresistible bakery products and more. For us, our
customers’ needs come first and to serve them better and offer the best in terms of quality,
benefits, flavor and taste we have grown and nurtured our own brands over the years. Healthy
Alternatives, L’Exclusif and Nature’s are our range of own brands, each providing a distinct
offering to cater to the discerning palate of the Indian consumer.

The Company believe in creating lasting experiences and go an extra mile to serve our
customers better. To make their journey an enjoyable one, our knowledgeable and passionate
staff answers any queries they may have, help one put together a perfect fine food gift or an
expertly selected cheese or meat platter for a special occasion.

 VISION

To be India’s dominant and pioneering omni-channel, gourmet retailer.

 Redefining India’s freshest and finest food experience by 2020

 To expand our footprint across metro & tier-I cities with our stores and to all India
with our E/M-commerce service
 To provide a brighter customer experience with an assortment of finest local and
international foods and highest level of service
 To continue to set benchmarks in gourmet food retailing

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PURPOSE

 To spread the joy of food

QUALITY STANDARDS

NATURE’S BASKET QUALITY POLICY

Quality is a word synonymous with Godrej and we at Godrej Nature’s Basket take pride in
our stringent quality standards. We go to great lengths and take the utmost care and
precaution to ensure that each day our customers get nothing but the very best across all our
products, services & interactions. Here are a few quality standards that we practice at Godrej
Nature’s Basket.

ONLY A+ QUALITY LEVELS

When you walk into a Godrej Nature’s Basket store you can be sure that you will get the best
quality level of fresh produce and bakery products in the city. Our teams take great pains to
locate and source only the finest available produce in every fruit and vegetable. Our bakery
products too are developed especially as per our stringiest standards.

EVERYDAY FRESHNESS
All fresh produce and bakery products retailed at our stores are procured on a daily basis.
These are very morning to the stores. Stale and old produce of the previous days is discarded
or sent back to be resold through other channels. This ensures Nature Basket consumers
always get to choose from a wide variety of the freshest produce & bakery products.

APPROPRIATE CARE IN STORAGE

We store our products as per recommended conditions and ideal temperatures. We do not
switch off our Freezers, Chillers or other refrigeration equipment at night. This is to ensure

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that temperature sensitive products are stored at correct temperatures all through. We switch
on exhaust fans at night to adequate ensure air circulation for ambient products. Even though
our store running costs are higher, we believe that this is a small price to pay to ensure 100%
fit for consumption products at all times.

ONLY HIGH QUALITY VENDORS

We only deal with suppliers and vendors who trade ethically. We do not deal with the grey
market or with vendors who have a reputation to deal in products by abusing and altering sell
by dates. In the unlikely event that any of our suppliers is caught tampering with sell by
dates, we penalize them appropriately and their supply contracts to our stores are terminated.

EXHAUSTIVE STOCK CHECKS

We thoroughly check all our branded products for expiry dates each month and segregate
those products that are close to expiry. These products are either sent back to vendors or
discarded completely. Products that are sent back to vendors are usually re-sold through other
channels by independent retail stores.

EXPERT CARE (MANAGEMENT)

All our store representatives compulsorily wear hand gloves and hairnet while handling food.
The store and all fixtures are sanitized at regular intervals. Food storage and display areas are
cleaned with food grade cleaners as per prefixed schedules.

RETURN POLICY:-
In the unlikely event that the products purchased from us are expired or spoilt when
purchased, we would be happy to replace or exchange the foods so purchased or refund the
money to the customer

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 1.5.1 Marketing strategies in Godrej Nature’s Basket

Segment Supermarket retail segment

Target Group Up-market urban consumers

To be India’s foremost retail destination for fine foods from across the World. The
Gourmet retail chain stocks the best international and domestic wines, cold cuts,
meats, cheese, organic foods and a large variety of pastas, noodles, beverages, exotic
and rare ingredients, meals, sauces, preserves and packaged food from around the
Positioning world.

Godrej Natures Basket SWOT Analysis

1. Differentiates itself from other supermarkets by offering a wide variety of

international brands of varied food products
2. Offers value-added such as home delivery, customer credit, customer loyalty
programs, clubs etc.
3. Extremely friendly and well-trained staff
4. Strategically located gourmet stores at high street locations in metro cities

Strengths 5. Strong backing of parent company helps establish brand image

1.The stores operations have still not achieved break-even financially

Weaknesses 2.Future growth calls for huge investment expenditure and debt

1.Gourmet retails sector in India is still small and niche-few competitors in India
2. This segment has massive buying power, is relatively price insensitive and
growing fast.
Opportunities 3.Foray into online e-commerce selling channel

1.Rising attrition rates and labour cost in India

Threats 2.Recession in real estate sector and rising cost of land and development

Godrej Natures Basket Competition

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 1.Lemarche’
Competitors 2. Carrefour

1.6 Aim & Objectives of the Study :-

o To know how Marketing Strategies really works in FMCG Industry in practical life.
o To know what type of responsibility has to be taken from the customers
o To get to know what are the various changes that should be done in order to convince
the customer.
o To enhance the company sales and support team by better learning the demand of the
Customers.
o To understand how consumers’ preferences and choices differ with respect to
different FMCG Products.

o To know that the main objective is making customer satisfaction which is the primary
goal of customer relationship management campaign is the surest way to improve the
bottom line.

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Chapter 2 Literature Review

FACTORS INFLUENCING BRAND PREFERENCE

Muneeswaran and Vethirajan (2013) revealed that Consumer ehavior assumes

much importance in the present consumer oriented marketing system with particular
reference to ‘gender attention’. The FMCG sector consists of four product categories such as
Household Care; Personal Care; Food and Beverages; and Tobacco each with its own hosts of
products that have relatively quick turnover and low costs. Every consumer is purchasing a
particular product due to the influence of many factors. The influencing factors differ from
one consumer to another and from product to product also. Similarly the brands which
hitherto occupied a place in the minds of the consumers have started to disappear due to
various sales promotion techniques and the quality brands from FMCG have slowly started to
attract the rural consumers. Though there is a different ways and means to exhaust and to
distribute abundantly produced Personal Care FMCGs products in markets, but the
consumers in the market are influenced generously by responding to selling habits of retailers
both in urban and rural market. In markets the consumers usually purchase what is available
at the retail outlet. Therefore the producers of personal care FMCGs should progressively
strengthen their distribution reach in the market. At the same time, there are some challenges
such as poor distribution system, fragmented rural market and heterogeneity of population
which the retailers ought to meet for satisfying the needs of consumers.

Mahalingam and Nandha Kumar (2012) concluded that the consumer ehavior plays
an important role in marketing. This is influenced by various factors. In the changing global
scenario we find that consumers needs and wants to buy a product also changes with it. In
this study titled “A Study on Consumer Behaviour towards Selected Fast Moving Consumer
Goods in Coimbatore City” the researcher has assessed the socio-economic profile ,shopping
pattern of consumers and found out the factors influencing the consumer to purchase the
selected FMCG products. The primary data required for the study was collected through
questionnaire which was distributed to 400 samples chosen from Coimbatore city

.The tools used for analysis are percentage analysis, garrett ranking and chi-square. From this
study it was found that most of the consumers are influenced by brand and quality in

26
purchase of FMCG products. There by the researcher has suggested improving the quality in
FMCG product through product development and external monitoring.

Ullah, Shafayet, Prince and Rozario (2012) depicted that Fast Moving Consumer
Goods (FMCG) sector is one of the largest sectors in the economy of Bangladesh. In the last
few years, the FMCG industry in Bangladesh has experienced a dramatic growth; both
qualitative and quantitative improvements have taken place in the consumer durables
segment. FMCG in marketing means convenient and low involvement products like, salt,
flours, pens, chocolates, etc. In recent years, the FMCG industry worldwide has experienced
a difficult market condition. In some categories, formerly popular brands have either been
deleted or squeezed between the category leaders and low-cost competitors. The study has
identified eight primary factors that influence consumers’ purchase decision of FMCG
products in Bangladesh. These factors are sales promotion, unavailability of brand, time
constraint, in-store TVC, variety-seeking ehavior, product features, end of aisle display and
product convenience. This study recommends focusing on three important factors, i.e., sales
promotion, time constraints and unavailability of brand to smoothen the progress of the
FMCG industry in Bangladesh. The FMCG industry will find better development
opportunities, if the findings of this study are used as an input in its strategic decision making

Md., Venkat and Khan (2012) revealed with more than six hundred thousand
villages and more than 70% of the population, rural India has become a massive consumer
goods market. FMCG has emerged as a major product category in rural consumption.
Companies marketing FMCG to rural consumers cannot merely extend their general
marketing strategies to rural markets. Instead, they need to devise rural specific strategies. In
this process, they need to understand crucial issues relating to rural consumer ehavior and
more specifically relating to different geographic regions of the country. This paper focuses
on understanding factors that affect the rural purchase of FMCG in South India. Empirical
study was conducted in 8 districts of South India to identify the key influencing variables.
Factor analysis was used to form 24 key variables into five groups (influencing factors).

Influence of retailers‘ recommendations has emerged as the most significant variable in the
trust factor. According to the study, rural consumers in South India consider that usage of
FMCG contributes to their lifestyle.

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 Kumar and Madhavi, (2006) conducted a study on Rural Marketing for FMCG. The
most preferred brands of toothpaste, shampoo and toilet soap in rural areas were identified on
the basis of gender interpretation. The study revealed that quality is the first factor that
influences rural customers followed by price, colour and taste. Among brand preference
Colgate plays a vital role among female respondents whereas male respondents mostly use
Pepsodent. Almost half of the respondents do not use shampoo because they are using
conservative products only and among the users 60 percent of them use Clinic Plus. No
significant relationship between gender and the use of shampoo was found. Majority of the
respondents using soaps preferred Hamam as their brand of toilet soap

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Chapter3 Research Methodology

3.1 RESEARCH DESIGN

It is a detailed outline of how an investigation will take place. A research design will
typically include how data is to be collected, what instruments will be employed, how the
instruments will be used and the intended means for analyzing data collected. This research is
descriptive in nature.

In descriptive research design a researcher is interested in describing a particular situation or

phenomena under his study. It is a theoretical type of researcher design based on the
collection designing and presentation of the collected data. Descriptive research design
covers the characteristics of people, materials, Scio-economics characteristics such as their
age, education, marital status and income etc. The qualitative nature data is mostly collected
like knowledge, attitude, beliefs and opinion of the people.

Research is a systematic plan for conducting research. There are two types of research:
Qualitative and Quantitative.

Qualitative research is aimed at gaining understanding of a specific organization or event

rather than surface description. Qualitative data collection methods vary using unstructured or
semi-structured techniques. Some common methods include focus groups (group
discussions), individual interviews, and participation/observations. The sample size is
typically small, and respondents are selected to fulfill a given quota.

Quantitative Research is used to quantify the problem by way of generating numerical data
or data that can be transformed into useable statistics. It is used to quantify attitudes,
opinions, behaviors, and other defined variables – and generalize results from a larger sample
population. It uses measurable data to formulate facts and uncover patterns in research.
Quantitative data collection methods are much more structured than Qualitative data

collection methods. It includes various forms of survey such as online surveys, paper surveys,
mobile surveys and kiosk surveys, face to face interviews, telephone interviews etc.

29
My research is a type of quantitative research wherein a questionnaire was prepared and data
was collected. It is also known as survey research which comes under quantitative research.
A survey is a research method in which subjects respond to a series of statements or questions
in a questionnaire or an interview. In my research, a questionnaire was prepared in printed
form which consisted of close ended and open ended questions. A questionnaire is a series of
written statements or questions.

3.2 SAMPLING

Sampling can be defined as the method or technique consisting of selection for the study of a
part with a view to draw conclusions or the solutions about the population. According to
Mildred Parton, “Sampling method is the process or the method of drawing a definite number
of the individuals, cases or the observations from a particular universe, selecting part of a
total group for investigation.”

While deciding about the sample of research, it is required from the researcher’s point to pay
attention to these under mentioned points :

 SAMPLE UNITS : A decision has to be taken concerning a sampling unit before

selecting a sample, a sampling unit may be geographical one such a state, District,
village etc. In this research sampling unit is from Bandra and Lokhanwala which is
located in the city of Mumbai.
 SAMPLE SIZE : This refers to the number of items to be selected from the universe
to constitute a sample. This is a major problem before the researcher. The size of the
sample should neither be excessively large nor too small, it should be optimum. This
size of population should also be kept in view for this also limits the sample size.
Sample size in this research is a total of 20 customers.

TOOLS AND TECHNIQUES

The primary data was collected through sample survey or census surveys from Bandra and
Lokhandwala which is located in the city of Mumbai that was taken by me from customers
while accompanying the delivery boys for a week. So for this purpose we have used the most
popular tool of primary data collection through direct communication with the respondents.
The tools used is a Questionnaire.

30
The idea behind the questionnaire was to get feedback from the customers to understand
their preferences and choices and also judge our performance in Godrej Nature’s Basket . A
total of 20 responses were collected and analyzed.

METHODS OF DATA COLLECTION

Primary Data: Primary data are basically the data which are collected afresh and for the first
time and this happens to be original in character. The primary data of my research are the
customers that regularly shop with Godrej Nature’s Basket Online as well as Offline.

Secondary Data : Secondary data are those which have already been collected by someone
else and which have already been used as per required. My Secondary Data is collected from
internet, magazines, newspapers.

3.2 Limitation Of Study

 Due to cost and time constraints the study was restricted to city of Mumbai
 The customer did not have time to give a contribute to the survey.
 Collecting information from different sources were time consuming
.

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Chapter4 Data Interpretation & Analysis

Data analysis is very important aspect of project, as it basically involves the analysis of all
the information that we collected. Data analysis is a body of methods that help to describe
facts,
detect patterns, develop explanations. After analysis of each of the question in a survey the
interpretation of the same is also being provided which includes the reason about the
particular aspect of the organization.

Following are the responses received from my survey:

Q.1 How is the experience shopping with Godrej Nature’s Basket ?

0
Excellent Good Bad Worse

Observations:-

Out of 20 customers that were surveyed, 8 of them found the experience to be excellent, 6 of
them found it to be good, and others were not satisfied with the experience shopping with
Nature’s Basket

32
Q.2 Are you satisfied by the service provided by the Delivery Expert?

Yes
NO

Observations:-

Out of 20 customers 14 customers i.e. 70% of the customers were satisfied with service
provided by the Delivery Expert and the remaining 6 customers i.e. 30% were not satisfied.

Q.3 Is the Quality of the Product up to the mark when you receive it ?

Yes
No

Observations:-

60% of the People i.e. 12 Customers found the Quality of the product up to the mark when
they received it and the remaining 40% of the people i.e. 8 Customers did not.

33
Q.4 Are the Frozen Products chill when you receive it ?

No

Yes

0 2 4 6 8 10 12 14 16 18 20

Observations:-

Majority of the Customers were receiving Frozen Products chilled i.e. 90% of them are
satisfied with Frozen Products when they receive it.

Q.5 Do you receive Delivery According to the Time Slot ?

Yes
No

Observations :-

When asked about the Time Slot, 85% of the people i.e. 17 Customers receive Delivery
according to the given time slot while the remaining did not receive it on time.

34
Q.6 After Lodging a Complaint, How many days does it take to resolve it ?

12

10

0
2 Days 3 Days 4 Days NA

Observations:-On Observing Majority of the Customers did not have any complaints and
Customers who had lodged a complaint , their complaints were resolved in 2 Days and in
some cases it took some more time.

Q.7 Do you receive a call from the store team if the product is not available or there is any
Substitution?

Yes
No

Observations:-

16 Customers (83%) did receive a call from the store team if the product was unavailable or
if there was any substitution while the remaining did not receive a call from the store team.

35
Q.8 Do you need any changes or improvement in terms of Delivery?

Yes
No

Observations:-

Most of the customers did not need any changes or improvement in terms of delivery that
sums up (80%) of them and few customers wanted some changes and improvements in the
delivery process(20%)

36
Chapter5 Conclusion

The brand strategies, selling expertise, multi pronged advertising strategies and

promotional offers are the major promotional and marketing strategies for Fast Moving

Consumer Goods (FMCG) adopted by Godrej Nature’s Basket.

The promotional and marketing strategies for Fast Moving Consumer Goods

(FMCG) such as quality of goods, warranty of goods, after sale service, location of the
outlets,

transportation charges, discount and rebate, credit, price, advertisement, response to

advertisement, gifts, discount coupons, buy back guarantee, free trails, contests

environmental friendly, health consciousness, freshness, celebrity endorsements,

sponsorship, beauty and fitness, social awareness, value for money, are the marketing

strategies adopted by Godrej Nature’s Basket.

The study has a quantitative approach as well as qualitative approach and the results and
responses of the survey are considered to draw the recommendations. Each of the research
questions has been identified as a parameter and the observations are recorded to draw
conclusions.

 Having a dedicated research methodology definitely improves the customer rating

towards customer service.
 Efficiency level and customer engagement increases with presence of Internal
Customer Care team.
 From the survey of Godrej Nature’s Basket , the company will improve in future if
there is an implementation of new products and the Quality of the Products will be up
to the mark when the customers receives it.

37
 Godrej Nature’s Basket have a good position in mind of customers but other
competitors have been succeeding in having a better position as compared to Godrej
Nature’s Basket.

 Godrej Nature’s Basket do realize the importance of both Customer service and
managing the relationship with customer independently.

38
Chapter6 Recommendation & Suggestion

 Company should focus on pricing policy in comparison to its competitors

because its competitors provide same products in lower rates
.
 The company should focus on their after sale services

 The customer rate quality of the service as the most relevant one and hence
Godrej Nature’s Basket should maintain the quality in products and after
Sale services and should make improvements in this feature.

 Many of dissatisfied Customers asked for more information about New

schemes .So the dissatisfaction may be due to not providing the latest news
about new schemes. So the company can make use of this opportunity to
retain its Customers by providing the right news.

 Any complaint is observed from the Customers, it should be dealt quickly.

This will reduce the chance for dissatisfaction.

 Company should try to Maintain competitive prices for consumers ,And

should focus on these to keep the brand image in the minds of people.

39
BIBLIOGRAPHY

 https://thrivehive.com/how-to-use-in-store-promotions-to-promote-your-business/
 https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/
personal-selling-and-sales-promotion-14/sales-promotion-95/objectives-of-a-sales-
promotion-469-4030/
 https://www.scribd.com/mobile/doc/9897769/Project-Report-on-Buying-Behaviour-
of-Consumers-Towards-Indegenious-Products
 https://www.omicsonline.org/open-access/analyzing-the-influence-of-sales-
promotion-on-customer-purchasing-behavior-2162-6359-1000243.php?aid=52367
 https://www.enotes.com/homework-help/what-primary-data-secondary-data-472774
 https://pingboard.com/work-life-balance/
 https://www.scribd.com/mobile/doc/14781627/Project-Report-on-Westside
 http://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/11162-in-
store-promotion.html

40
ANNEXURE

SURVEY

Customer Feedback Form

Q. How is the experience shopping with Godrej Nature’s Basket?

1) Excellent
2) Good
3) Bad
4) Worse

Q. Are you satisfied by the service provided by the Delivery Expert?

1) Yes

2) No

Q. Is the quality of the products up to the mark when you receive it?

1) Yes

2) No

Q. Are the Frozen Products chilled when you receive it?

1) Yes

2) No

Q. Do you receive delivery on time according to the Time Slot?

1) Yes

41
 2) No

Q. After lodging a complaint, How many days does it take to resolve?

1) 2 Days

2) 3 Days

3) 4 Days

4) NA

Q. Do you receive a call from the store team if the product is not available or there is any
substitution?

1) Yes

2) No

Q. Do you need any changes in terms of Delivery?

1) Yes

2) No

42