A PROJECT REPORT ON

“BRAND MARKETING IN FMCG SECTOR”

A Project Submitted to

University of Mumbai for partial completion of the degree of

Bachelor of Management Studies

Under the Faculty of Commerce

By

SAIFALI OVESHALI FATTEH

Under the Guidance of

PROF. TEJASHREE DONGARE SHAH

Chikitsak Samuha’s Sir Sitaram & Lady Shantabai Patkar College

of Arts & Science and V.P.Varde College of Commerce & Economics

S.V. Road, Goregaon West, Mumbai - 400062

March 2019
 A PROJECT REPORT ON

“BRAND MARKETING IN FMCG SECTOR”

A Project Submitted to

University of Mumbai for partial completion of the degree of

Bachelor of Management Studies

Under the Faculty of Commerce

By

SAIFALI OVESHALI FATTEH

Under the Guidance of

PROF. TEJASHREE DONGARE SHAH

Chikitsak Samuha’s Sir Sitaram & Lady Shantabai Patkar College

of Arts & Science and V.P.Varde College of Commerce & Economics

S.V. Road, Goregaon West, Mumbai - 400062

March 2019
 Chikitsak Samuha’s Sir Sitaram & Lady Shantabai Patkar College
of Arts & Science and V.P.Varde College of Commerce & Economics

S.V. Road, Goregaon West, Mumbai – 400062

CERTIFICATE
This is to certify that Mr. SAIFALI OVESHALI FATTEH
has worked and duly completed his Project Work for the degree of Bachelor of
Management Studies under the Faculty of Commerce in the subject of
MARKETING and his project is entitled, “BRAND MARKETING IN FMCG
SECTOR” under my supervision.

I further certify that the entire work has been done by the learner under my guidance
and that no part of it has been submitted previously for any Degree or Diploma of any
University.

It is his own work and facts reported by her/his personal findings and investigations.

Name and Signature of Guiding Teacher Course Coordinator

External Examiner Principal

Date of Submission
 DECLARATION BY LEARNER

I the undersigned Mr. SAIFALI OVESHALI FATTEH here by, declare that the
work embodied in this project work titled “BRAND MARKETING IN FMCG
SECTOR” forms my own contribution to the research work carried out under the
guidance of PROF. TEJASHREE DONGARE SHAH is a result of my own
research work and has not been previously submitted to any other University for any
other Degree/ Diploma to this or any other University.

Wherever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

Name and Signature of the learner

Name and signature of the Guiding Teacher

 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the depth
is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do
this project.

I would like to thank my Principal DR. SHARMISHTA MATKAR and Vice

Principal CEO DR. MALA KHARKAR for providing the necessary facilities
required for completion of this project.

I take this opportunity to thank our Co-coordinator MRS. SWATI TAKKAR for her
moral support and guidance.

I would also like to express my sincere gratitude towards my project guide

PROF. TEJASHREE DONGARE SHAH whose guidance and care made the
project successful.

I would like to thank my College Library, for having provided various reference
books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped
me in the completion of the project especially my Parents and Peers who supported
me throughout my project.
 INDEX
Sr no. Content Pg no.
CHAPTER 1- INTRODUCTION
1 Introduction 1
1.2 What is Marketing? 4
1.3 What is a Brand? 4
1.3.1 How Brands were Born 5
1.3.2 Branding and its Importance 6
1.3.3 Characteristics of a Brand 9
1.3.4 How to Build a Brand Identity 11
1.4 FMCG 16
1.4.1 FMCG Sector In India 18
1.4.2 Impact of the FMCG sector in India 20
1.4.3 Government Policies and Regulatory 22
Framework
1.4.4 New launches and product extension by 23
FMCG companies to boost growth and
market share
1.5 Marketing strategies 24
1.5.1 Market Segmentation 25
1.5.2 Target marketing 28
1.6 Market positioning 31
1.6.1 Types of Marketing Strategies 32
1.6.2 AIDAS model 34
1.6.3 Marketing communications 35
1.7 Brand image 37
1.8 Marketing Strategies in building Brand 42
Image of FMCG
 CHAPTER 2 - RESEARCH METHODOLOGY
2.1 Scope of the study 50
2.2 Objectives 50
2.3 Limitations of the study 50
CHAPTER 3 - LITERATURE REVIEW 51

CHAPTER 4 - DATA ANALYSIS,

INTERPRETATION & PRESENTATION 57

CHAPTER 5 - CONCLUSION 75
 CHAPTER 1 - INTRODUCTION
In today’s competitive environment where the customer has got tremendous choice
for selecting brands, it is a very challenging task for a marketer to attract new and
retain the old customer. To accomplish this objective the marketer uses different types
of marketing strategies to position their product in the mind framework of the
customer and establish their brand image in the market.

Marketing strategies are a method of utilizing the marketing mix to satisfy and attract
consumers to make a profit for the organization. The marketer should find out what
the consumers wish to purchase and how much they are willing to pay. The company
should then decide whether the desired product can be produced and sold at the price
consumer will pay and at a profit to the company. Modern marketing begins with the
customer, not with production, sales or technological advancements and last with the
customer satisfaction and social well-being. Under market-driven economy, buyer or
customer is the king.

With liberalisation and globalization the availability of products and services has
increased. The customer has wider choice and he is demanding more and more
benefits and the competition is increasing in the market place. The core of marketing
concept is that the customer and not the product shall be the axis of business systems.
All business operations revolve around customer service and satisfaction and many
companies are following customer oriented philosophy to ensure growth in sales,
profits and market share.

Now a day’s FMCG goods are purchased from various retail stores. With the trend of
shopping shifting to malls, the store culture has emerged as a very important tool to
attract customers. Consumers prefer to visit a retail store where they can purchase
variety of products under one roof, not only consumers but producers also prefer to
sell their products through various retail stores. Earlier the products were sold through
local stores or Kirana stores where the shopkeeper only provides those products which
were asked by the consumer, but the store culture allow them to have a look at all the
various available options which they can compare and then select the best among the
lot.

Fast Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG) are
products that are sold quickly and at a relatively low cost. Examples include non-
durable goods such as packed foods, beverages, toiletries, over the counter drugs, and
other consumables.

Many fast moving consumer goods have a short shelf life, either as a result of high
consumer demand or as a result of fast deterioration. Some FMCGs, such as meats,
fruits, vegetables, dairy products, and baked goods are highly perishable.

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Other goods such as pre-packed foods, soft drinks, candies, and toiletries have high
turnover rates. Sales are sometimes influenced by holiday and/or seasonal periods and
also by discounts offered.

Packaging is critical for FMCGs. To become successful in the highly dynamic and
innovative FMCG segment, a company not only has to be acquainted with the
consumer, brands, and logistics, but also, it has to have a sound understanding of
packaging and product promotions. The packaging has to be both hygienic and
customer attracting. Logistics and distribution system often require secondary and
tertiary packaging to maximize efficiency. Unit or primary packaging protects
products and extends shelf life while providing product information to consumers.

The profit margin on FMC products can be relatively small, but they are generally
sold in large quantities; thus, the cumulative profit on such products can be
substantial. According to BASES, 84% of professionals working for fast moving
consumer goods are under more pressure to quickly bring new products to the market
than they were five or ten years ago. With this in mind, 47% of those surveyed
confessed that product testing suffers most when deadlines are accelerated.

The growth of the internet over the past century and the rise of the brand community
phenomenon have contributed greatly to the demand for FMCGs.

A capable brand will improve customer’s attitude strength of the item relationship of
a brand, which is produced by involvement with the item. Brand name and what a
brand remains for are the centre qualities for most fast moving customer merchandise
(FMCGs). The essential trait of a Fast moving consumer goods are likewise vital for a
FMCG brand to exceed expectations in light of the fact that the quality of a brand
normally give the crucial strides to separating between a few contenders. Dominant
part of the FMCG brands have recognizable brand identifiers, for instance Lux soap,
Cadbury’s bournvita, thumbs up etc.

The symbolic aspects of branding can also persuade brand loyalty. Brand loyalty
refers to the consumer’s behaviour of time after time purchase a specific brand over a
definite period of time. This is based on the past behaviour and the brand loyal
consumer’s is expected to purchase a particular brand at present and in the future, thus
to make the experience of customer worth remembering marketer must provide all
possible facilities to convert a consumer into brand loyal consumer. Brand loyalty is
important for marketers because it helps in retaining customers and often requires less
marketing efforts than to acquire new ones. It also has positive implications on brand
equity.

In today’s competitive world where the customer is having varied choices in terms of
brands, the customer is very choosy in selecting a specific product or brand.

Hence, the marketers have started using the concept of store promotion to cater the
immediate needs of the customers and make them satisfied.

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Marketing professionals and specialist use many tactics to attract and retain their
customers. Sales Promotion strategies can help create that positive customer image
that leads to successful sales. Sales promotion spending plan covers very nearly 70%
of the aggregate customer deals special spending plan. It is additionally considered as
a brand differentiator by numerous huge players like Coca-Cola, Pepsi, Heinz and
some more. For some business specialists and scholastics, deals advancement is
viewed as run of the mill promoting strategies that increase the value of an item with a
specific end goal to accomplish particular advertising objectives.

The main role of offers advancement is to instigate the customers to settle on a speedy
purchasing choice keeping in mind the end goal to make expands deals. Common
place sample of offers advancement is to offer customers to take risk of winning a
prize or offering some additional items with the same cost. Deals advancement and
advertising are between related yet do not have the comparative reason. It is
publicizing which makes a stage for deals advancement where clients can see the
direct included benefit of purchasing a product. Then again, publicizing is an
impalpable advancement of the product to send the showcasing message to the
customer-base.

According to an article in economic times several ecommerce companies are opening

physical stores to give clients a touch and-feel experience of items and emerge in the
disorder of the inexorably overwhelmed online retail space. Flipkart, Zivame,
Pepperfry, FirstCry and Lenskart have begun logged off experience zones to separate
their offerings from their online adversaries and to build their validity.

FirstCry.com, an online children wear organization, decreased its showcasing

spending plan by 25% subsequent to opening 135 physical stores. Flipkart, the biggest
Indian ecommerce organization, has taken off 20 disconnected from the net stores
crosswise over 10 urban communities and would like to extend to 100 experience
zones by March.

The organization dispatched the stores in conjunction with its logistics arm eKart — a
key component in its provincial development procedure. Lenskart began opening
disconnected from the net stores in January. As of now, the online eyewear retailer
has around 110 stores crosswise over India and targets 1,000 by 2020. Specialists said
the line in the middle of online and disconnected from the net is getting obscured as
organizations from one side traverse to the next and the other way around. Retailers
including Reliance, Tata and Future Group have wandered online as a major aspect of
their technique to draw in more clients. Thus store promotion has become a very
important tool for every company.

This strategy of store promotion is widely used by the manufacturers of FMCG

products as these are the products which are consumed by the customers frequently
and regularly.

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Also in case of Fast Moving Consumer Goods, large numbers of variants are available
which provide the marketer the scope to use such promotional strategies which can
convince the customer to purchase their products by creating brand image.

Brand image is the consciousness in the consumer’s mind of a brand's total

personality. It is developed over time through advertising campaign with a constant
theme, and is authenticated through the consumer’s direct experience which can be
formed using in store promotional activities.

1.2 What is marketing?

Marketing refers to the activities of a company associated with buying and selling a
product or service. It includes advertising, selling and delivering products to people.
People who work in companies' marketing departments try to get the attention of
target audiences using slogans, packaging design, celebrity endorsements and general
media exposure.

Marketing is everything a company does to gain customers and maintain relationships

with them. Even the small tasks like writing thank-you letters, playing golf with a
prospective client, returning calls promptly and meeting with a past client for coffee
are marketing. The goal of marketing is to match a company's products and services
to the people who need and want them to ensure profitability.

Marketing refers to the activities of a business related to buying and selling a product
or service. It involves finding out what consumers want and determining whether it is
possible to produce it at the right price. The company then makes and sells it.

Marketing covers a vast area of business, including:

 how you communicate

 the brand
 the design
 pricing
 market research
 consumer psychology
 measuring effectiveness

At the core of marketing is an understanding of what customers need and value. A

company’s long-term success depends on learning what its customers’ needs are. It
then finds ways to add value through different approaches.

1.3 What is a Brand?

Brand is a product, services, person, company, or a concept which has characteristics
like a name, symbol, etc. to be differentiated from others in the market. A brand is
what makes the product identifiable and differentiable.

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Branding isn’t new. We’ve been branding people since the start. They had a face
(identity), were given names, people around them had an image of them in their
minds, etc. Branding of products started a bit later though.

It all started with brand names, other characteristics were put to use eventually. E.g.
Coca-Cola had to include different brand characteristics like a different bottle shape,
the colour (red and white), and the experience (happiness, joy) to make its own
identity.

A brand is the combination of properties within and outside a product a product which
gives an identity to the generic product. It cannot be separated from the product.
Imagine if Surf Excel starts producing soft drinks. Will you buy it?

Customers buy a brand. The tangible product is not the reason anymore. It’s now an
important part of the brand.

Will you buy Coca Cola, without any label, in a Sprite’s bottle?

The market is full of similar products. To make a product stand out, one needs to
assign to it some identification properties. Such identification properties include
certain associations like name, logo, colour, and many other attributes. These
branding attributes give the product a certain voice, etc, position the product at some
distinctive place in the consumers mind, and give them an experience wherever they
have a contact with the brand.

1.3.1 How Brands Were Born

There was a time, going back at least 70 years, when all it took to be successful in
business was to make a product of good quality. If you offered good coffee, whiskey
or beer, people would come to your shop and buy it. And as long as you made sure
that your product quality was superior to the competition, you were pretty much set.
Well into the 1970s, a savvy consumer could distinguish between high-quality and
shabby products quite easily.

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And yet, as much as we like to complain about what we buy, it remains a fact that we
live in a golden age for quality products. Today, it is much rarer to find cars that
consistently break down or kiddie pools that leak. I challenge you to walk into any
supermarket and find a product that is not of almost equal quality to the category
leader in terms of functional performance. Nevertheless, the companies that were
category leader in the early days often still are today. Some represent the
"foundational brands," the companies that in the 1950s and 1960s epitomized the kind
of smart marketing that is now ubiquitous. A handful of these marketing leaders are
listed in the gallery below.

And the reason they have survived the test of time comes down to the discipline of
marketing and branding.

The shift from simple products to brands has not been sudden or inevitable. You
could argue that it grew out of the standardization of quality products for consumers
in the middle of the 20th century, which required companies to find a new way to
differentiate themselves from their competitors.

In the 1950s, consumer packaged goods companies like Procter and Gamble, General
Foods and Unilever developed the discipline of brand management, or marketing as
we know it today, when they noticed the quality levels of products being offered by
competitors around them improve. A brand manager would be responsible for giving
a product an identity that distinguished it from nearly indistinguishable competitors.

This required an understanding of the target consumer and what we call a "branded
proposition" that offered not only functional but also emotional value. Over time, the
emotional value would create a buffer against functional parity. As long as the brand
was perceived to offer superior value to its competitors, the company offering the
brand could charge a little more for its products. If this brand "bonus" was bigger than
the cost of building a brand (the additional staff and often advertising costs), the
company came out ahead.

1.3.2 What is branding and why is it important for the business?

Branding, by definition, is a marketing practice in which a company creates a name,
symbol or design that is easily identifiable as belonging to the company. This helps to
identify a product and distinguish it from other products and services. Branding is
important because not only is it what makes a memorable impression on consumers
but it allows your customers and clients to know what to expect from your company.

It is a way of distinguishing yourself from the competitors and clarifying what it is

you offer that makes you the better choice. Your brand is built to be a true
representation of who you are as a business, and how you wish to be perceived.

There are many areas that are used to develop a brand including advertising, customer
service, promotional merchandise, reputation and logo. All of these elements work
together to create one unique and (hopefully) attention-grabbing professional profile.
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Why Is Branding Important?
Branding is absolutely critical to a business because of the overall impact it makes on
your company. Branding can change how people percept your brand; it can drive new
business and increase brand awareness.

1. Branding Gets Recognition

The most important reason branding is important to a business is because it is how a

company gets recognition and becomes known to the consumers. The logo is the most
important element of branding, especially where this factor is concerned, as it is
essentially the face of the company.

This is why a professional logo design should be powerful and easily memorable,
making an impression on a person at first glance. Printed promotional products are a
way of getting this across.

2. Branding Increases Business Value

Branding is important when trying to generate future business, and a strongly

established brand can increase a business’ value by giving the company more leverage
in the industry. This makes it a more appealing investment opportunity because of its
firmly established place in the marketplace.

3. Branding Generates New Customers

A good brand will have no trouble drumming up referral business. Strong branding
generally means there is a positive impression of the company amongst consumers,
and they are likely to do business with you because of the familiarity and assumed
dependability of using a name they can trust. Once a brand has been well-established,
word of mouth will be the company’s best and most effective advertising technique.

4. Improves Employee Pride and Satisfaction

When an employee works for a strongly branded company and truly stands behind the
brand, they will be more satisfied with their job and have a higher degree of pride in
the work that they do. Working for a brand that is reputable and help in high regard
amongst the public makes working for that company more enjoyable and fulfilling.
Having a branded office, which can often help employees feel more satisfied and have
a sense of belonging to the company, can be achieved through using promotional
merchandise for your desktop.

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5. Creates Trust within the Marketplace
A professional appearance and well-strategised branding will help the company build
trust with consumers, potential clients and customers. People are more likely to do
business with a company that has a polished and professional portrayal. Being
properly branded gives the impression of being industry experts and makes the public
feel as though they can trust your company, the products and services it offers and the
way it handles its business.

6. Branding Supports Advertising

Advertising is another component to branding, and advertising strategies will directly
reflect the brand and its desired portrayal. Advertising techniques such as the use of
promotional products from trusted companies such as Outstanding Branding make it
easy to create a cohesive and appealing advertising strategy that plays well into your
branding goals.

Branding and its Concepts:

Brand, just like living beings, have certain traits

1. Brand Association – The intangible product features like the logo, colour scheme,
ambassadors, owners, etc. which are associated with the product. They help in the
positioning of the product.

2. Brand Name – The part of the brand which gives it a spoken identity. Just like a
person’s name.

3. Brand Attributes – The characteristics of a brand. The core value of the brand. To
be a strong brand the brand should have some characteristics (attributes) like
relevancy, consistency, appeal, sustainable, credibility, etc.

4. Brand Identity – How an organization feels of its brand. It’s basically an image of
the brand from the company’s point of view. That is, how it want its customers to
perceive its brand.

5. Brand Image – The image of the brand in the customers’ mind. How they perceive
the brand.

6. Brand Personality – Just like humans, brands have a way they speak and behave.
Brand personality is basically the human personality traits of the brand. E.g. honest,
caring, luxurious, etc.

7. Brand Voice – The way a brand speaks to its customers. It is that unique and
constant feature included in every brand decision which makes your customers
recognize it and differentiate it from others. (E.g. Sprite, in India, has a unique brand
voice of being straight forward in everything) Brand voice gives rises to the
personality.

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8. Brand Positioning – Where does the brand stand among the competition?
Positioning is the distinctive/unique position of the brand in the market/customers
mind.

9. Brand Experience – How customers/consumers experience the brands when they

search for, shop for, or consume the brand. It includes the sensations, feelings,
responses evoked by a brand whenever the consumer interacts with it.

9. Brand Awareness – It is the extent to which consumers are acquainted with the
particular brand.

10. Brand Recall – Brand Recall is the ability of the consumers to recognize the
brand when the product category is mentioned. (E.g. coca cola is recalled when soft
drinks are mentioned)

11. Brand Recognition – Brand recognition is the ability of consumers to recognize

the brand when asked questions about the brand or when shown products of that
brand. (E.g. a product is shown to you and you`ve seen this before or not or do you
remember its name or not)

12. Brand Value – As the phrase states – Brand value is the value of the ‘Brand’ over
and above the tangible product. That is, how much extra will a customer pay (in
monetary terms) if he gets the product of a specified brand.

13. Brand Equity – The impact of a brand on the purchasing decision of a customer.
Brand equity is a set of brand assets and liabilities linked to a brand, which adds to or
subtracts from the value provided by a product or services. It is how a business is
affected because of perceptions, attitudes, and preference of the customers towards
the brand. Brand equity is difficult to estimate.

1.3.3 Characteristics of a Brand

Brand Characteristics are the core values and fundamentals that showcase the true
essence of the brand. They are a set of attributes that are identified as the physical,
distinctive, and personality traits of the brand similar to that of an individual. It is very
important for the brand to stand for something that is unique and consistent in nature
and this objective drives the management and the branding and marketing department
to define a set of Brand Characteristics working as one of the integral facets of the
entire brand management process.  

 Knowledge about the target market

It is not possible for any brand to appeal the entire market to promote its offerings of
products and services and the segregation and filtration of the target market is a must
and is the foremost Brand Characteristic for any brand to attain the pinnacle of
success.

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To start with, the target market or location needs to be identified and then the target
audience needs to be carefully analyzed and understood by filtering them on the
parameters of age, gender, lifestyle, income levels, disposable income, working
industry, and interest areas. Once the brand has an authentic and a thorough
knowledge of the target market, it can decide on the marketing channels and
promotional tools that can be opted to promote the offerings of products and services.

 Uniqueness

The Brand Characteristic of uniqueness holds the primal advantage for the brand to be
successful and gain the competitive edge in the market. There has to be a unique and
specific character to the brand that separates it from the other players in the market.

For example, Apple brand is renowned for offering innovative and technologically

advanced products as compared to its contemporaries plus its products has minimal
design aesthetic appeal working as a unique Brand Characteristic for the company.

Dominos promises to deliver the pizza delivery within 30 minutes from the order
placed, else free and it has been working in the favour of the brand for a very long
time as the company has been adhering to its Brand Characteristic and the promise of
timely delivery.

 Passion

The markets are always dynamic and the business is known for its volatile nature as
there is always a tough competition from the existing players in the market as well as
the new and budding ones entering and creating a foothold in the market.

Hence, the characteristics of passion, patience, and perseverance are a must for the
brand to survive and thrive in the ever competitive industry. Steve Jobs, the promoter
of Apple had this characteristic in his personality and the same was evident in
his technology brand as well that has made the brand to carve a niche for itself and
rank amongst the top brand consecutively for last 7 years.

 Consistency

The market insiders vouch for the fact that the customer changes his brand
preferences when the brand to which he has been loyal becomes inconsistent in its
values and attributes and functional benefits of its offerings. Hence, it is very
imperative for the brand to have the Brand Characteristic of consistency to keep the
loyal customers happy and satisfied giving a tough competition to its arch rivals.

Restaurants are one of the best examples of this characteristic as if the quality of food
is maintained and consistent throughout the operations of the restaurant, the brand
enjoys loyal customers that keep on visiting for enjoying the quality and scrumptious
food, and if there is any decrement in the levels of food quality or hygiene factors, it
can cost a fortune to the restaurant brand.

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 Competitiveness

As discussed earlier, success to business never comes easy as there are already
established brands in the market that work as a tough competition to the brand plus
the new entrants offer new and novel products on the table to the customers.

Hence, the factor of competitiveness that comprises of keeping a steady eye on the
competition, research and study on the latest industry trends, keeping a thorough pace
with the technological advancements, and offering novel and innovative products and
services to the customers is one of the crucial Brand Characteristic.

 Exposure

The brand needs to be heavily exposed in the market having bigger marketing budgets
to opt for the multiple media and promotional channels to make the target market and
the audience aware about the unique Brand Characteristics, ethos, fundamentals,
values, unique selling propositions, and how its products and services are different
from its competitors.

For the successful branding campaign, the brand should opt for a 360-degree
marketing approach utilizing media channels right from television, radio, print,
outdoor, digital and social media amongst others.

 Leadership

The CEO of a big firm will be the leader of the brand and in case of the small
business; owner will be the leader of the brand. In any case, the attribute of leadership
is a must to envisage the short-term and long-term business objectives, plan and
execute business strategies, motivate the internal staff, and maximize their strengths
that will help the brand to achieve its goals and objectives.

1.3.4 How to Build a Brand Identity

Ultimately, a brand identity is a way to communicate with the world, differentiate
yourself from your competition, and create a brand experience that encourages people
to engage with you. If you want your brand to succeed and thrive in the future, you
need to build a brand identity that accurately conveys your essence and is flexible
enough to evolve with you. But that doesn’t happen overnight. It requires deep
thinking, a team with strong communication and design skills, and an intimate
understanding of your brand. But it can be done well, with excellent results.

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Step 1: Complete Your Brand Strategy

Your brand identity is a tool to help you execute your brand strategy. Your strategy is
a detailed plan that outlines exactly what you’re trying to achieve and how you’re
going to achieve it. Your brand identity, along with your content strategy, helps you
communicate in ways that will let you achieve those goals.
As such, before you dive into your brand identity, it’s important to have a fully
fleshed out strategy.

As we walk through our creative process, we’ll cover some brand strategy elements,
but in this post we’ll be mostly focusing on the process of designing your brand
identity. 
To set yourself up for success, it’s important to complete your strategy and understand
your brand’s core values, brand voice, and brand messaging architecture (aka your
positioning, value prop, tagline, and brand stories), as your visual design will work in
tandem with those elements. 

Step 2: Understand What a Brand Identity Is and What Makes It Great

A logo and a colour palette alone do not make a brand identity. When designing your
identity, you need to create a comprehensive visual language that can be applied to
everything from your website to your packaging. Depending on your brand, your
needs may be more expansive, but a basic brand identity includes:

 Logo
 Colours
 Typography
 Design System
 Photography
 Illustration
 Iconography
 Data visualization
 Interactive elements
 Video and motion
 Web design

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Just because you design these elements don’t mean they’re effective. A strong brand
identity needs to work for everyone, both your internal team (e.g., brand ambassadors,
content creators) and the people who will interact with it (e.g., customers). As you
embark on the design process, make sure your brand identity is:

Distinct: It stands out among competitors and catches your people’s attention.

Memorable: It makes a visual impact. (Consider Apple: The logo is so memorable

they only include the logo—not their name—on their products.)

Scalable and flexible: It can grow and evolve with the brand.

Cohesive: Each piece complements the brand identity.

Easy to apply: It’s intuitive and clear for designers to use.

If any of these elements are missing, it will be challenging for your brand team to do
their job well.

Step 3: Do Your Research

When you begin a branding project, you want to approach each phase from a
philosophical and highly critical standpoint—inspect, poke, and prod until you get to
the core of your brand. Only once you have that intimate knowledge can you translate
it into a visual language. 

That means doing a fair amount of research before diving into design. Yes, this is
hands-down the most laborious stage. But it is crucial to build the foundation upon
which your visual language will stand. Here, your goal is to gather as much
information as you can about who you’re trying to communicate with, who your
competition is, and where your brand currently stands. 

 First, Create Personas

Your brand identity is the “face” that interacts with the entire world. Whatever you
create should accurately communicate who you are. However, one common
misconception is that a brand identity is exclusively informed by what your brand
wants to present.

This isn’t entirely true. It’s also informed by what your brand’s customers want to
engage with, or are accustomed to interacting with. If your identity doesn’t resonate
with them, it won’t be effective. This doesn’t necessarily mean your brand’s
customers will choose your logo colour; it means that you will make more effective
design choices once you understand their needs, wants, and values. To understand
who you’re trying to reach, try this easy exercise to create personas that represent
your different target segments.

13
These personas identify both demographic and psychographic information that gives
you insight into who these people are and what drives them. 
Beyond your primary audience (customers), you also want to consider how secondary
or tertiary groups might perceive your brand (e.g., other brands or potential
employees). This information can also influence your design decisions. 

 Then, Identify Your Competition

Building a brand identity is all about differentiation: making your brand visible,
relevant, and unique. However, without a firm understanding of your competitive
landscape, it’s easy to blend in.

Thus, it’s crucial to understand not just who your competition is but how your brand
compares, in perception and presentation. To get a snapshot of the competition, do a
thorough competitive analysis. If you haven’t done one before, here’s a guide to do it.
You can also make a copy of this template to help you document everything. As you
move through the process, pay special attention to how your competitors present
themselves in terms of common visual elements, trends, industry-specific visual
themes, brand personalities, etc. For example, we once did competitive research for a
brand and found that all of their competitors used the exact same four colours. This
isn’t uncommon, as many industries tend to gravitate toward the same visual elements
(think Netflix and YouTube’s red colour), but it revealed a great opportunity to
differentiate. One notable example of this: In 2011, video platform Twitch made a
splash with their all-purple branding at a time when their competitors used bold
greens and reds. The colour instantly became a hallmark of their brand. (BTW, the
company was so successful it sold to Amazon for a cool $1 billion in 2014.)

 Finally, Take a Look at Your Existing Brand

Whether you’re building your brand identity entirely from scratch or updating a stale
identity, you still need a full assessment of:

The current state of your brand’s identity

How that brand identity might be crafted or tweaked to align with your goals going
forward.

The goal is to understand how your brand is perceived, both internally and externally.
Getting an honest and accurate reflection is the only way to understand how and
where you’re succeeding or how you need to course correct.

14
This stage requires a fair amount of research, including conversations and surveys
with:

 Employees
 Higher-ups
 Customers

For your internal team, you should distribute a brand audit survey. (Here’s how to do
one, along with the questions to include.) This survey is a deep dive into every aspect
of your brand, from your values and personality to logo and positioning. Again, this is
why having a fleshed out brand strategy is so important.

Once you’ve completed your brand audit survey, you can use that info to inform your
creative brief. Things to include in your brief:

 Title  Brand perception

 Overview  Brand goal
 Objective/focus  Primary message
 Why are you rebranding?  Value proposition
 Budget  Tone/voice/personality
 Deadline  Success metrics
 Audience  Competitors
 Who they are, how this may  Important insights from past
have changed over the years experiences
 Current customers, ideal new
customers

Once you have a comprehensive and intimate understanding of your brand, it’s time
to move into design.

Step 4: Build Your Identity

By this time, you have a ton of information to help inform ideation, between your
competitive analysis, customer feedback, brand audit survey, and brief. At this stage,
you want to take that text-based information and translate it into visual concepts.
Luckily, the information you have is often steeped in emotional language about your
brand’s personality, goals, and values. Now the challenge is to figure out how to
communicate and enhance those sentiments through visuals.

You can tackle this by assembling your team to brainstorm word clouds. The focus is
not to free associate words into other words. The goal is to bring those words to life.
The associations may be abstract, but it is important to get everything out.

15
Step 5: Build Your Brand Style Guide

The only thing more heartbreaking than a poorly designed brand identity is a
beautifully designed identity that is never used or used incorrectly. A brand style
guide is the savior here—if it’s crafted the right way.

Include clear, easy-to-follow guidelines for every part of the brand identity, including
examples and use-cases. Also include practical detail, denoting as much information
as needed to help your designer replicate the brand identity successfully. Once
completed, make sure guidelines are distributed to the team, stored in an easy-to-
access place, and regularly updated.

1.4 FMCG
Fast Moving Consumer Goods (FMCG) are also well-known as consumer packaged
goods (CPG) are products that are sold rapidly and usually consumed at a habitual
basis, as divergent to durable goods such as kitchen appliances that are replaced less
frequently. The FMCG industry mainly includes the production, distribution and
marketing operations of consumer packaged goods.

Fast moving consumer goods are consumed by the consumers for their own use and
purchased repeatedly.

Consumers procure these products on regular intervals in small quantity. The price of
such products per unit is low. The consumption of such products is very high due to
the consumer’s necessity for Fast Moving Consumer Goods.

FMCGs usually refer to as non-durable products which are consumed in a short span
of time, and are often consumed daily Indian population is a huge population over 120
crore. A separate sector called FMCG sector is well established in India.

India has always been a country with a big part of world population, be it the 1950’s
or the twenty first century. Taking that into consideration, the FMCG market potential
has always been very big in India.

However, from the 1950’s to the 1980’s investments in the FMCG sector were very
less due to stumpy purchasing power and the government’s unconditional support to
the small-scale sector. FMCG sector is the fourth largest sector in the economy with a
total market size in excess of Rs 60,000 crore.

The giant players in this sector include Sara Lee, Nestle, Unilever, Coca-Cola,
Carlsberg, General Mills, Procter & Gamble, Pepsi, Reckitt Benckiser, Kleenex, Mars
and many more. In recent years, the fast moving consumer goods sector (FMCG) has
encountered increased use of marketing strategies all over the world.

This sector is characterized by products which have low unit value, require frequent
purchases and consumer behaviour reflecting a lesser amount of loyalty, impulse
buying, and less involvement on the part of a consumer.
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Every day, every minute, from the start to the end of the day, we are bounded by
products which make our life easier in a lot of ways. And this is achievable due to the
dedication and effort of FMCG companies. Examples of FMCG products comprise
toiletries, soap, cosmetics, oral hygiene, detergents, packaged food products, soft
drinks, shaving products, candy and chocolate bars, etc. This industry essentially
comprises Consumer Non Durable products which are required to fulfill the everyday
need of the population. A customer generally spends least amount of effort to procure
them. Based on the prime factor behind consumers buying, FMCG’s can be divided
into three classes:

Types of Fast Moving Consumer Goods:

FMCG

Impulse Emergency
Staples
Goods Goods

Staples Goods - Goods that consumer purchases on a regular basis. For example
toilet soap, detergent, sauce, toothpaste, biscuits etc.

Impulse Goods- Goods which are purchased with any planning or searching. These
good are usually purchased due to external stimulus. For example soft drink, potato
chips which are displaced in the stores because shoppers may not have thought of
buying until spotting them.

Emergency Goods- Emergency Goods are those goods which are purchased when
the need for that particular product arises. For example the requirement of seasonal
products such as umbrella required at the time of monsoon or sweaters in winters.

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1.4.1 FMCG Sector in India

India is one amongst the fastest developing economies in the world and its population
and territory are big also. Population is nearly 120 crore and territory is from J and K
to Kerala, from Assam to Gujarat is very wide. The industries are of different types
and markets are of different types and can be segmented as urban, sub- urban and
rural markets. The rural market is very wide and still it is difficult to cover. Nearly 70
percent of Indian population is living in rural areas. There is a great opportunity for
companies in Indian markets including FMCG sector for the companies in Indian
markets.

Up to 1991 Indian economy was a protected economy and in this year due to
liberalization a good number of MNCs have entered in India market and mainly in
FMCG sector also.

With a population of 1.28 billion, India is one amongst the largest economies in the
world in terms of purchasing power and growing consumer expenditure, next to
China.

The Indian FMCG industry, with an approximate market size of 2 trillion is the fourth
largest sector in India. In the last few years, the FMCG sector has grown-up at an
average of 11% a year; in the span of five years, annual growth has increased at a
compounded rate of 17.3%.

FMCG sector is characterized by strong presence of global business, intense

competition between organized and unorganized companies, well recognized
distribution network and less operational cost. Availability of key raw materials,
cheaper labour costs and existence across the whole value chain gives India a
competitive edge. During 2012, the country witnessed soaring inflation, muffled
salary hikes and slow economic growth, which affected the FMCG sector with
companies having reduction in volume growth which were seen in their quarterly
results. However, the trend seen in 2012 accelerated in 2013 as growth came from
rural dwellers through a rise in their disposable incomes.

There is tough competition from local and foreign companies in Indian markets. They
have started producing products like skin care, toothpaste, toiletries, fast food,
chocolates, cosmetics and many other products. The FMCG sector is flooded by
companies from India and abroad. In future the intensity of competition would
increase further. The situation in Indian economy is very favourable for foreign
companies. The major factors attracting them are availability of raw materials, low
labour cost, market potential for consumption and more disposable income of Indian
customers. More over the GDP in Indian economy is increasing every year so per
capita income increasing and there is scope for further development. At present large
and small companies are operating in Indian FMCG sector. Fast moving consumer
goods comprise of a large part of consumers’ income in all countries. The fast moving
consumer goods sector is an important contributor to India’s GDP.

18
The Indian FMCG sector is extremely fragmented with almost half the market
covered by unbranded, unpackaged home made products. The FMCG sector is the
fourth largest constituent of Indian economy with a market size of about Rs. 130,000
crore. India’s FMCG sector is the fourth largest sector in the economy and provide
employment to more than three million people in downstream activities.

The fast moving consumer goods market is expected to increase at a compound

annual growth rate of 14.7 per cent to touch US$ 110.4 billion in the period 2012-
2020 according to India brand equity foundation.

FMCG sector is the most competitive and growing sector as customers require these
products on regular basis and their demand for FMCG products keeps on increasing,
thus the companies need to promote their products so that they appear different and
better from the competitor’s product. Indian companies have their vicinity over the
quality chain of FMCG segment, right from the supply of crude materials to bundled
merchandise in the nourishment preparing part. For instance, Amul supplies milk and
dairy items like cheese, butter, etc.

FMCG product categories consist of food and dairy products, pharmaceuticals,

consumer electronics, packaged food products, household products, drinks and others.
On the other hand some common FMCG’s include coffee, tea, detergents, tobacco
and cigarettes, soaps and others.

Fast moving consumer goods will get to be Rs 400,000-crore industry by 2020. A

Booz and Company study discovers the patterns that will shape its future. Another
report by Booz and Company for the Confederation of Indian Industry (CII), called
FMCG Roadmap to 2020: The Game Changers, defines the key development drivers
for the Indian quick moving shopper merchandise (FMCG) industry in the previous
ten years and distinguishes the huge patterns and considers that will affect its future.

It has been evaluated that FMCG segment saw powerful year-on-year development of
around 11 for each penny in the most recent decade, very nearly tripling in size from
Rs 47,000 crore in 2000-01 to Rs 130,000 crore now (it represents 2.2 for every penny
of the nation's GDP).

Development was significantly quicker in the previous five years — just about 17 for
each penny every year since 2005. It recognizes strong GDP development, opening up
of rustic markets, expanded wage in country ranges, developing urbanization
alongside advancing customer ways of life and purchasing practices as the key drivers
of this development. It has been evaluated that the FMCG business will develop no
less than 12 for each penny every year to wind up Rs 400,000 crore in size by 2020.

Furthermore, if a percentage of the components play out positively, say, GDP grows
somewhat speedier, the legislature evacuates bottlenecks, for example, the
19
merchandise and benefits charge, foundation ventures get, there is more productive
spending on government endowment et cetera, development can be essentially higher.
It could be as high as 17 for each penny, prompting a general industry size of Rs
620,000 crore by 2020.

1.4.2 Impact of FMCG Sector in India

The fast-moving consumer goods sector is an important contributor to India’s GDP

and it is the fourth largest sector of the Indian economy. Products in this sector are
meant for repeated consumption and they usually yield a high return.

The most familiar in the list are toilet soaps, detergents, shampoos, toothpaste,
shaving products, shoe polish, packaged foodstuff, and extends to some electronic
goods. The Indian FMCG sector which is the fourth biggest sector in the India
contributing to a market size of `2 trillion with rural India contributing to one third of
the sector’s revenues.

FMCG companies have to incur a lot of money in heavy advertising, marketing,

packaging and distribution. The pricing of the finished product also depends on the
cost of raw material used in production. The growth of the sector has been driven by
both the rural and urban markets. India is one of the most attractive markets for
foreign FMCG players due to easy accessibility of imported raw materials and cheap
labour.

Distribution of categories has undergone a remarkable transformation in the past 15

years. According to D Shivakumar, chairman and CEO, PepsiCo India FMCG is
available in 8.8 million outlets and shampoo is available in 80% of those outlets.

He also added that "Skin creams have managed to get to the top 10 distributed
products and packaged tea, which was earlier the most distributed product, is now out
of the top 10 list. Data suggests that most of this evolution is due to the shifting of
consumption pattern of consumer’s preference to branded products from non-branded
products.

He also added that "Skin creams have managed to get to the top 10 distributed
products and packaged tea, which was earlier the most distributed product, is now out
of the top 10 list. Data suggests that most of this evolution is due to the shifting of
consumption pattern of consumer’s preference to branded products from non-branded
products.

For instance, in utensil cleaners and edible oils incursion has amplified to 36% from
33% and 21% to 17% from 2012 to 2014, respectively. "Earlier, people would visit at
shops with bottles to buy mustard oil.

20
That's changing with rising affluence levels and lower packaging costs. In coming
future, more unbranded to branded consumption in non-mature categories such as,
hair oils and hair conditioners will be seen," says Vijay Udasi, executive director,
Nielsen India.

The discoveries likewise uncover a drop in infiltration levels of cleansers cakes and
banish from 60% in 2012 to 59% in 2014 as more purchaser’s movement to clothes
washers to do their clothing. Additionally, skin creams have likewise seen a drop of
2% because of changes in purchaser conduct. "The portions inside of the skin creams
class have likewise changed. More individuals are purchasing developing items like
face washes, hostile to maturing and under-eye creams," says Udasi official chief,
Nielsen India.
For HUL, next step now is to make its brands available utilizing pack sizes and value
focuses customized to win the nation over. "We have possessed the capacity to keep
up our authority position in a following so as to develop business sector a business
sector improvement approach. A standout amongst the best endeavors on this front
has been the Dove 'twin sachet', which offers a cleanser and conditioner together at a
Rs 5 value point to impel trials," says Srirup Mitra, classification head - Hair Care,
HUL.

However, the predominance of non-nourishment classifications on the top could

change. There are dismal signs. Take the salty snacks classification for occasion.
Entrance has ascended from 58% to 64%. Indeed, even a classification like noodles,
which has still not broken into the main ten rundown, has seen an increment in
infiltration from 38% to 42%. "The following level of development exists in marked
nourishments," says Udasi. "There is a development of new sustenance classes in
bread spreads, including nutty spread and other flavours also. As opulence levels rise,
country shoppers will spend more on basic supply things and nourishment."
The Indian FMCG sector stands as the fourth largest sector in the economy with a
market size of US$13.1 billion. The sector has well established distribution networks,
and also has intense competition between the organized and unorganized sector.
FMCG sector in our country has a tough and competitive MNC existence across the
entire value chain. It has been predicted that the FMCG market will reach to US$ 33.4
billion in 2015 from US $ billion 11.6 in 2003.

The markets which have high potential and give brand makers the opportunity to
influence the customers to purchase branded products are the middle class and the
rural segments.

In India most of the product categories like jams, toothpaste, skin care, shampoos, etc
which have low per capita consumption as well as low penetration level, but the
potential for growth is huge have a lot of demand. The 14 Indian Economy is rolling

21
forward by leaps and limits, keeping pace with swift urbanization, rising literacy
levels, and growing per capita income.

The giant firms and small-time companies in FMGC sector are rising higher and
growing up fast. In a study conducted by AC Nielsen, 62 out of 100 brands belong to
MNCs, and the remaining by Indian companies. Fifteen companies own these
62brands, and 27 of these belong to Hindustan Lever. Pepsi stands at number three
and next to it is Thumps Up. Britannia occupies the fifth place, followed by Colgate
(6), Nirma (7), Coca-Cola (8) and Parle (9).

Despite the fact that FMCG development has been abating for quite a while, sliding
by 8.1% from 2010 to 2013, Nielsen predicts that India's FMCG industry will develop
from $37 billion in 2013 to $49 billion in 2016.
Appropriation development and advancements around sachet offerings will assume
real parts in fuelling development, which had backed off in the most recent couple of
years.
While the ascent of e-trade is by and large distinctly viewed, a few new models may
develop throughout the following couple of years.

1.4.3 Government Policies and Regulatory Framework

The various policies Government of India's and its regulatory frameworks such as
reduction of license rules and sanction of more than 50 per cent foreign direct
investment in multi-brand retail and 100 per cent in single-brand retail sector are
several reason of growth in this sector. The government has also made some changes
the Sugarcane Control Order, 1966, and replaced the Statutory Minimum Price of
sugarcane with Fair and Remunerative Price and the State Advised Price (SAP).
Goods and Service Tax (GST): GST, which has filled the place of multiple indirect
taxes levied on FMCG sector with a uniform, simplified and single-pint taxation
system, is likely to be implemented soon (the benefits are likely to come in by the end
of FY’14). The rate of GST on services is likely to be 16% and on goods is proposed
to be 20%. A swift move to the proposed GST may reduce prices, bolstering
consumption for FMCG products.

Some Government Policies and Regulatory Framework are mentioned below:

 Food Security Bill: The food security Bill has been approved recently in 2013
in the Union Cabinet. According to the Bill, 5Kg of food grains per person per
month will be made available at reduced prices from State Governments under
the targeted public distribution system.
With increased demand, the agriculture sector would have a boost and this
could lead to more investments in recovering agriculture productivity and
making it more competitive.

22
  FDI in retail: The choice of Government of India allow 51% FDI in multi
brand retail and 100% FDI in single brand retail responds well towards the
outlook of the FMCG sector in India. The decision has bolster employment,
and supply chains, apart from giving great visibility for FMCG brands in retail
markets, bolstering consumer spending, and encouraged a lot of product
launches. FDI of 100% under the automatic direction is authorized in the food
processing sector, which is taken as a priority sector. FMCG sector amounted
to 1.9% of the nation’s total FDI inflows in April 2000- September 2012. FDI
inflows into India from April 2000 to April 2013 in the food processing sector
was `9,000.33 crore, accounting for 0.96% of overall FDI inflows where as
that of soaps, cosmetics and toiletries was `3,115.54 crore in, accounting for
0.32%. The food processing sector had total FDI inflows of `6,198 crore
during April 2009 to December 2012.

 Relaxation of license rules: Industrial licenses are not necessary for almost
all food and agro-processing products, certain items which require license are
beer, potable alcohol and wines, cane sugar, and hydrogenated animal fats and
oils as well as items reserved for exclusive manufacturing in the small-scale
sector.

1.4.4 New launches and product extension by FMCG companies to

boost growth and market share

New product launches, innovation and product expansion are many of the few factors
which motivate a FMCG company for increasing their profitability to a greater extent.
As Indian customers prefer purchasing global brands and their aspirations and desires
are always focused on products of global companies, their desire to consume products
is also increasing.

Strong demand for already existing FMCG products is motivating more FMCG
companies to extend their brand umbrella and enlarge their product range as well,
strengthen the Indian FMCG space. Moreover to achieve higher market share and
maintain long-term growth, most of the FMCG companies are going for brand
extension strategy. Various gigantic industrial players have introduced new and
innovative products and ideas during FY’13. For instance,

 HUL’s one of the largest brands, Lifebuoy aims to change hand washing behavior
of people by educating them about their health and cleanliness.
At the event of Mahakumbh Mela, Lifebuoy partnered with over 100 restaurants
to raise awareness about hand hygiene. Over 2.5 million Rotis (carried the stamp
“Lifebuoy se haath dhoye kya? and reminded people to wash their hands before
eating.

23
 HUL’s Kissan strengthened its ‘natural’ advantage by re- positioning itself on
“Goodness of 100% real”. The idea was to give consumers a “real” experience –
in the products they buy and through participation in activities that help them
connect to nature. This inspired the launch of ‘Kissanpur’

 Marico entered a new category by launching Saffola oats in various flavors. It has
also launched new products in the category of hair care and skin care.

 The takeover of Paras Healthcare last year helped it extend into the male personal
care segment where it covered a good market and gained profit.

 For Godrej, the major share of growth came in from new launch, product
innovation, and diversification across regions and development of the distribution
network.
 New products such as cream-based hair colour and extension of Cinthol into new
categories such as face wash and moisturizers gave an added advantage to the
overall business. HUL also went in for product extensions in brands such as Lux,
Pepsodent and Pureit.

 In the year 2012 Dabur undertook a mega initiative to substantially expand its
distribution footprint and drive cost-effective growth. This expansion was taken to
increase the direct distribution coverage in rural markets, customizing promotional
activity and providing exclusive servicing through a dedicated sales team in these
markets.

1.5 Marketing Strategies

Marketing strategies serve as the elementary reinforcement of marketing plans formed

to fill market needs and reach overall objectives of the company. Plans and objectives
are generally tested for measurable results. Commonly, marketing strategies are
formed for a period of 12 months, with a deliberate plan detailing specific actions to
be accomplished in the same year. Time period included by the marketing plan vary
by company, by industry, and by nation, however, time spans are getting shorter as
the speed of change in the business environment increases. Marketing strategies are
dynamic and communicative. A most important objective of any marketing
strategy for the various product categories is to motivate consumers to repurchase the
brand because of liking or association with the brand.
Purchase intention is the implied promise to one’s self to purchase the product over
again whenever one makes next trip to the store.

It has a substantial importance because the companies want to increase the percentage
of a specific product sold in the market for the purpose to increase their profit. The

24
intention of consumers to repurchase a specific product can be promoted by the
marketer through various marketing strategies used in stores such as attractive product
display, cash discount, floor advertisement, in store television etc.

Marketing strategy

Market segmentation Market positioning

1. Identify customer needs 1. Identify differential

and segment the market. advantage for each segment

2. Develop Profiles of 2. Formulate marketing mix

resulting segments

Target marketing Market planning

1. Develop marketing of each

1. Evaluate attractiveness
segment
plan for each segment
2. Develop marketing
2. Select target segments
organization

Marketing has two distinct meanings according to Doyle (1998). The first and most
important is a philosophy for the whole business. It defines the primary goal of
everyone in the organization as meeting the needs of customers. The second meaning
of marketing is a distinct set of activities and tasks, which constitute marketing
planning and decision-making. These marketing decisions and plans centre on market
segmentation, target marketing, market positioning and market planning.

1.5.1 Market Segmentation

A market includes customers with related needs. But customers in a market are never
homogeneous. They differ in the benefits wanted.
The amount they are willing or able to pay for, the media they see and the quantities
they buy. (Doyle.1998). Very few products or services can satisfy all customers in a
market.
Not all customers want or are prepared to pay for the same things. To implement the
marketing concept and successfully satisfy customer needs, different product and

25
service assistance must be made to the varied customer groups that typically comprise
a market.

The technique used to get a hold of the diverse nature of markets is called market
segmentation, defined as:

“The identification of individuals or organizations with similar characteristics that

have considerable implications for the determination of marketing strategy” said by
(Jobber. 1998). A market segment is a customer group within the market that has
special characteristics for the determination of a marketing strategy, Doyle (1998).
According to Jobber (1998), the objective is to identify groups of individual with
related requirements so that they can be served effectively while being of sufficient
size for the products or services to be supplied efficiently. Usually in consumer
markets, it is not possible to create a marketing mix that satisfies every individual’s
requirements exactly. Market segmentation, by grouping together customers with
similar needs, provides a commercial viable method of serving these customers.

 Bases for segmentation:

Market division parcels a given business segment into distinctive sorts of sections
which engage a business to better concentrate on its things to the vital customers.
The diverse sorts of division variables, profilers, are expressive quantifiable customer
properties, for instance, industry, geographic region, nationality, age and pay. At the
point when all is said in done these variables are correlative to each other. Kotler
(2003) has exhibited a need-based administering procedure, where customer are
amassed into sections in light of related needs and points of interest required by
customer in fulfilling his particular use need.
For each needs—based segment, a determination of which demographics, lifestyles or
use practices make the section specific and identifiable is made.

 Finding the need:

The issue with this need or favourable position division is that. To dismember these
pieces and confer to them, the promoter needs to know who these people are: their
profiles or customer properties. To find the needs of customers in a given business
area, it is required to endeavour promoting examination. This will frequently
consolidate easygoing gatherings and focus social occasions to recognize what focal
points customers search for and the level of differentiations among them in their
longings in the key step.
The accompanying step will usually be dealing with a formal survey to an extensive
example of customers to quantify these refinements in necessities.
The issue with this need or point of interest division is that. To analyze these pieces
and grant to them, the publicist needs to know who these people are: their profiles or

26
customer properties. To find the needs of customers in a given business division, it is
required to endeavour promoting examination.

This will frequently consolidate easygoing gatherings and focus get-togethers to

recognize what favourable circumstances customers search for and the level of
differentiations among them in their wishes in the key step. The accompanying step
will usually be dealing with a formal survey to a far reaching example of customers to
quantify these qualifications in necessities.

 Consumer market segmentation:

The various segments based on Consumer market are given by Kotler (2003). The
four major segmentation variables for consumer markets are listed below:

Geographic
- Region of the country
- Urban or rural area
Demographic
- Ace, sex, family size
- Income, occupation
- Religion, race, nationality
Psychographic
- Social class
- Lifestyle type
- Personality type
Behavioral
- Product usage: light, medium, heavy user
- Brand loyalty: none, medium, high
- Type of user: occasions

 Organizational market segmentation:

The process of segmentation in industrial and other organizational markets is

analogous to that employed in consumer markets. First management have to segment
the market by benefits sought, then they have to describe the characteristics of these
customers. The organizational market can be segmented on several factors broadly
classified into two major categories: macro segmentation and micro segmentation.

 Macro segmentation
 Organizational size
 Type of industry
 Geographic location

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 Micro segmentation
 Choice criteria
 Decision making unit structure
 Decision-making process
 Buy class
 Purchasing organization
 Organizational innovativeness

1.5.2 Target Marketing

Once the organization has identified its market-segment opportunities, it has to decide
how many and which ones to target. Target marketing puts end market segmentation.
This is the choice of selecting a specific segment to provide them the product or
service in which the company is dealing and is a key element in marketing strategy.
The organization needs to evaluate segments and decide which ones to serve.
Marketers segment the market in order to target one or more of these segment with
tailored, specialized offerings.

A marketing strategy is selecting and describing one or more target markets that a
company's product or service will identify for business opportunities. A target market
is a defined group most likely to buy a company's products or services.
This group usually has similar product needs, such as college students who usually
have an appetite for affordable cars, technology products, dorm room goods, etc.
Once a target market is identified by a company, a target market strategy needs to be
created in order to decide on how to promote, communicate and reach the group.
There are three ways that a firm can identify target markets.

 Evaluating segments:

While evaluating different market segments the firm must look at two factors that are
the segments overall attractiveness and the company’s objectives and resources.
Various segments have characteristics that make it generally attractive, such as size,
growth, profitability, scale economies, and low risk. Investigating in the segment
make sense given the firm’s objectives, competences and resources. Some attractive
segments may not mesh with the company’s long rim objectives.

 Targeting strategies:

Targeting evaluates the attractiveness of the segments and chooses the target market.
Targeting is the process of selecting targets and matching the suitable response to

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them on the source of operational needs, capabilities and limitations. HUL targets
different types of customers with different products requirements.
For motivated customers, it offers Lifebuoy and Breeze, it offers Hammam and Lux
variants for aspiring customers and for prosperous customers, and it has Pears, Dove
and superior range of Lux.
In case of detergents, it offers Wheel for striving customers, Rin for wannabe
customer and Surf Excel for affluent customers.
Having evaluated various segments the organization should consider different target
marketing strategies.

Target Marketing Strategies

Undifferentiated Marketing

Target Marketing
Focused Strategies
Marketing Customized
Marketing

Differentiated
Marketing

 Undifferentiated marketing:

The company decides to develop a single marketing mix for the whole market.
This absence of segmentation is called undifferentiated marketing. (Jobber, 1998).
Here the firm ignores actual or potential differences among segments and targets one
offer to the entire market. (Doyle. 1998) Occasionally, a market will show no strong
differences in customer characteristics that have implication for marketing strategy.
Alternatively the cost in developing a separate marketing mix for separate segments
may offset the prospective gains of fulfilling customer needs more exactly.
Unfortunately this strategy can occur by default. For example, companies who lack a
marketing orientation may practice undifferentiated marketing through lack of
customer knowledge.

Marketing Mix Whole Market

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 Differentiated marketing:

When marketing segmentation reveals several potential targets, specific marketing

mixes can be developed to appeal to all or some of the segments. This is called
differentiated marketing (Jobber, 1998).
As with undifferentiated marketers, differentiators seek to compete across the
majority of’ the market, hut here they do so with different offers.
They develop different products and marketing programs for each segment of the
market (Doyle, 1998).

Marketing Mix 1 Segment 1

Marketing Mix 2 Segment 2

Marketing Mix 3 Segment 3

 Focused marketing:

The recognizable proof of a few portions in a business sector does not infer that an
organization ought to serve every one of them. At the point when an organization
adds to a solitary promoting blend went for one target market (specialty) it is
rehearsing centered showcasing. The organization does not expect to contend in most
of the business sector yet rather has practical experience in one portion, or a little
number of fragments.

Segment 1

Segment 2 Marketing Mix

Segment 3

 Customized Marketing:

A customized marketing is a sort of promotion technique whereby a publicist tries to

redo the message to the one of kind needs of a particular client or particular subset of

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clients. Custom promoting is generally focused toward high total assets specialty. In a
few markets the necessities of individual clients are special and their acquiring force
adequate to make planning a different advertising blend for each of the client needs.

Marketing Mix 1 Customer 1

Marketing Mix 2 Customer 2

Marketing Mix 3 Customer 3

A sort of promoting technique whereby a publicist tries to redo the message to the one
of kind needs of a particular client or particular subset of clients. Custom promoting is
generally focused toward a high total assets specialty. In a few markets the necessities
of individual clients are special and their acquiring force adequate to make planning a
different advertising blend for each of the client needs.

1.6 Market Positioning

Once market segmentation and target market selection is done the next step in
developing an effective marketing strategy is to evidently position a product or
service offering in the market place. It has been shown how a business can offer
superior value by strategies that can add value or reduce costs. The third way to
enhance its competitiveness is through positioning itself more effectively. Position
strategy is the choice of target market segments which determines where the business
competes and the choice of differential advantage which dictates how it competes
(Doyle, 1998), Jobber (1998) agrees when telling us that positioning is the choice of:
• Target market: where we want to compete
• Differential advantage: It includes how we wish to compete

Kotler defines positioning as, “The act of designing the company’s offering and
image to occupy a distinctive place in the mind of the target market.”

Marketing strategies helps in forming the very best marketing programs for the
business. Without strategies, the risk of becoming unfocused in the marketing efforts
is always there. To grow and increase customer base marketing strategies ought to be
integrated into the marketing plan (which in turn should be area of the business plan).
By integrating strategies to your overall company plans, company can better achieve
business objectives.

1.6.1 Types of Marketing Strategies

Types of marketing strategies are categorized as the follows:

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1. Image strategy: The idea in the consumer’s mind of a brand's total personality,
image is developed over time through advertising campaign which has a constant
theme, and is authenticated through the consumers' direct experience. In addition to
raising the perception of the proficiency of a brand, this strategy also enhances the
fame of the brand.
For example, a star or a famous athlete can be a suitable representer; a celebrity can
let customers notice the brand he or she uses.
Dabour has created a brand image and a enormous product following by associating
mega-names like super star Amitabh Bachchan, Rani Mukhurjee, Vivek Oberoi, and
Mandira Bedi. Dabur has invested Rs. 150 crore just on the advertising of it product
Real Fruit Juice and Real Active. Till this date the company has been successful in its
mission as the people now are aware about the brand and remember its products by
name.

2. Promotion strategy: It is a mix of all the promotional activities such as, an

advertising campaign, increased PR activity, a campaign offering free-sample, free
gifts or trading stamps, arranging demonstrations or exhibitions, setting up various
road shows with attractive prizes, price reductions on temporary basis, door-to-door
calling, telemarketing, and other methods such as sending personal letters to the
company. Every brand needs a detailed marketing communication or promotion. For
example, a sports brand related activity, or a campaign or contest based on a brand in
which customers can participate in or watch. It can help people to gain more
information about a brand and the sale of the related product. Promotion strategy is
also an activity designed to boost the sales of a product or service.
Britannia gives gift items bowls, boxes etc with its product Good day biscuits. Dabur
foods usually provide customers with some special offers during festival seasons like
free trips, free gifts etc.

3. Media marketing strategy: It refers to the use of appropriate media mix to achieve
optimum results from an advertising campaign. Other than just letting customers get
the main idea of a brand, different ways of exposure can be used to make people
aware of the appearance of the brand which may peak their curiosity.
As for the people who already know the brand, they may be provided with further
opportunities to understand more about the brand. This strategy also enhances the
purchase intention of first time consumers, as well as repurchases ones, allowing
customers to clearly know the information of a brand and its related products. This
can be done by updating the brand’s latest news via advertisements, the internet, and
even mass media.

4. Multiple choices strategy: Multiple choices marketing strategy is the practice of

businesses interacting with their customers using various communication channels,
meeting customers on the platforms that they prefer to use. It means to integrate with
the spirit of a brand, aiming for the personal tastes and the various needs of the
consumers, and then to publish a brand series to meet those needs.

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5. Brand slogan: A branding slogan is a small combination of words or a petite
phrase that a business uses to make its company and products stick in consumer’s
memories. An effective branding slogan not only sticks in a consumer’s mind, but
also adjures a mood and forms a bond with the consumer.
Branding slogans are used in both advertising and promotional materials used by a
business. Having a slogan with the spirit of a brand in it can stimulate the consumers,
causing them to have different feelings, as if sensing the enthusiasm of a brand, and
thus giving them confidence in the product. For example, the very popular slogan
“Daag Acche hain” which Unilever used for its product surf. Cadbury Dairy Milk’s,
“kuch meetha hojaye”.

6. Integrate the marketing channels: Integrated Marketing

Communication strategy refer to the combination of various marketing tools such as
advertising, marketing online, activities done to maintain public relation, direct
marketing, sales campaigns to promote various brands so that alike message reaches a
large number of customers. Effective integration of various brand communication
tools helps in promotion of products and services efficiently.
IMC coordinates all the promotional activities by using the same quality of service
and identical environmental design, this strategy lets consumers experience the exact
same service wherever they are.

7. Store Promotion Techniques: Store promotions influence a store’s operations and

performance to great extent. The fewer Store promotions are planned in any given
year, the less accustomed the staffs is to such events, which is a negative stressor that
also has a large impact on customer relations. In addition, often these special
promotions have a short span and the revenue generated from various strategies is
very high.
In other words, the correct use of store promotion can help the retailer to increase its
sale which result in increased profit for the store also the customers will be satisfied
and happy while leave the store.

1.6.2 AIDAS model:

AIDAS is an acronym that depicts what happens when a purchaser connects with a
promotion. The term and methodology are credited to American promoting and deals
pioneer, E. St. Elmo Lewis. In advertising, getting the consideration of potential
clients or customers is basic to increasing enthusiasm for the item.
When that hobby is set up, a business must make potential clients or customers want
the item enough to make a move, for the most part by buying the item. There's a
specific way buyers respond to a promoting message.

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Advertisers can pick up the consideration of potential consumers by free items,
extensive visual signs and other sensory techniques. Once the advertiser has the
potential consumer’s consideration, they must convert their interest through showing
them the product, informing them about the product information and promotions.
Organizations should then create final desire by concentrating on making a need for
their particular image, and at last, consumer activity through advancements, rebates
and getting out of elements or advantages.

 Attention:
Gaining attention is a skill and just like any skill, attracting consumer’s attention can
be improved upon with time and practice. A common phrase applicable over here is
“First impression is last impression” i.e. the first encounter of consumer with the
product creates the product’s overall impression. The initial attempt of the marketer
must be to put the customer completely at ease. Informal conversation is one of the
best openers after which the seals person can achieve customer attention by leading
him onto the sale.

 Interest:
Once the customer’s attention is grabbed, the next step is to bring customer’s interest
to the product or service. Some of the sales people are very good in the starting but as
the technicalities take over, they become uncomfortable while explaining the product.
Maintaining interest is a crucial part of the sales process and hence is included in the
AIDAS theory.

To make an interest Fanta composed an energized TVC which begins with the scene
of a room where a young lady is seen looking exhausted, sitting out of gear her time.
A kid enters with a bottel of "Fanta" in his grasp. As they take tastes from the jug, the
mind-set changes and they begin bouncing with satisfaction. The camera zooms out of
the window to another house where another young lady and a kid are seen sharing
Fanta and bouncing around. The camera then zooms out further and skillet around
demonstrating the whole city having some good times. Everything is seen throbbing
and hopping in a state of harmony as drops of Fanta spill and bob around.

 Desire:
In this stage viewer's interest is converted into a strong desire for the product or
service. A television ad must create a strong drive and create a need for purchasing
the product even if need is not there. This can happen only if the marketer has used
the correct sense of appeal in the advertisement.
For example an advertisement of a Deodorant should be highlighted in such a manner
that a customer might think “Why didn’t I buy this Deodorant before”. Thus kindling
that desire becomes an essential element of the AIDAS selling theory.

 Action:

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When a brand promotes its image through an advertisement, advertisers should ensure
they are able to convince their customers to make a concluding decision or be
interested to know more about the product/brand. How so ever attractive and
customer focused an advertisement be, if there is no strong positioning in the minds of
the customer your brand will be lost among the various other product available in
market and all of the efforts are then required to tell your audience how useful the
product is for its target market.

An advertisement will be in a position to make a solid effect just in the event that it
can highlight the advantages its objective business sector will get with utilizing the
item at exactly that point activity towards a buy will occur as individuals will
dependably purchase your item when they see the advantages joined with utilizing it.

A decent case that obviously shows item utilization advantage is that of Moov which
is Backache Specialist and is Ideal for shoppers with tumultuous ways of life and are
inclined to repeating spinal pains. The particular Ayurvedic ‘Fast Pain Relief
Formula’ penetrates deep inside, produces warmth and helps you recover fast.

 Satisfaction:
Once the customer has placed the order, the customer has just parted with his money.
The customer expect good service, so even after the customer has bought the product,
marketer need to assure the customer that he has made the correct decision. The
product is good for the customer.

1.6.3 Marketing Communications

Marketing communications gives the methods by which brands and associations are
introduced to their groups of onlookers. The objective is to invigorate a dialog that
will, preferably, prompt a progression of buys and finish engagement. This
cooperation speaks to and trade between every association and every client; as
indicated by the quality and fulfillment of the trade process, it will or won't be
rehashed.
It takes after, consequently, that correspondence is a critical and essential piece of the
trade procedure, and it is the expertise and judgment of administration that decide,
much of the time, achievement or disappointment. It is an action performed in group
of people focused.

Marketing communications refer to the messages and various related mediums used to
communicate with a market.
Marketing communications is included in the promotion part of the "marketing mix"
or the "four Ps" which are price, place, promotion, and product.

35
It s also referred as the strategy used by a company or individual to reach the target
market set for a particular product using various types of communication.

Key objective of marketing communication is to inform your target audience about

your brand and to persuade them to use your product or service. Through marketing
communication the marketer reminds the target audience about your product or
services using various marketing channels.

Picton et al (2001) defines marketing communications as “all the promotional tools of

the marketing mix which include the communications between an organization and its
target audiences on all matters that affect marketing performance. The concept target
audience is defined by describing it as “Those individuals or various formed groups
that are similar and have a direct or indirect effect on business performance, and are
selected to receive marketing communications.
Wells et al (2000) agree about it being an element in the marketing mix, the final
element to be exact, and define it as “persuasive communication planned to send
marketing linked messages to a selective audience targeted by the company.”
According to Doyle (1998) there are numerous reasons why managers want to
communicate to markets and audiences which are:

 Inform
 Persuade
 Image creation
 Reinforcement

Marketing communications process usually includes direct selling, media advertising,

direct response marketing, sales promotion and public relations (Doyle. 1998). The
range of activities’ tools available to an organization to communicate with its target
audience is called the marketing communications mix (Picton et al. 2000). According
to Kotler (2003) the marketing communications mix consists of five major forms of
communication which are as follows:

1) Advertising: Any paid form of non-personal presentation and promotion of ideas,

goods or services by an identified sponsor.

2) Sales promotion: A variety of short-term incentives to encourage trial or purchase

of a product or service.

3) Public relations and publicity: A variety of programs designed to promote or

protect a company’s image or its individual products.
4) Personal selling: Face-to-face interaction with one or more prospective purchasers
for the purpose of making presentations, answering questions and procuring orders.

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5) Direct and interactive marketing: Use of mail, telephone, fax, e-mails or Internet
to communicate directly with or ask for response or dialogue from particular
customers and prospects.

1.7 Brand Image

Brands are the most important asset for any business organization. A brand is a
recognizing name and/or image, (for example, logo, trademark, or bundle outline)
planned to distinguish the merchandise or administrations of either one dealer or a
gathering of vendors, and to separate those products or administrations from those of
contenders. A brand in this way flags to the client the wellspring of the item, and
ensures both the client and the maker from contenders who might endeavour to give
items that seem, by all accounts, to be indistinguishable.

The values which make up a brand exist because they are perceived. They are
additionally assessed decidedly or contrarily by clients and potential clients. These
assessments meet up to shape the brand's picture. The principal thing to acknowledge
about picture is that it is recognition and need not as a matter of course be certainty.
Purchasers can't know in a genuine sense everything to think around an organization.
What they don't know they may accept or expect with no goal proof; in basic terms
they will hold a feeling. Be that as it may, these discernments are to the purchaser,
pretty much as genuine as those in view of harder proof and in all likelihood will
impact the obtaining choice.

Given that most products and services on the market have great competition with
similar products and services made by other brands, there are only a small amount of
things that typically differentiate the two brand’s products. These incorporate the cost
of the item, the nature of the item, and any extraordinary qualities of the item.
On the other hand, when these qualities are excessively comparable, making it
impossible to separate, it is the brand itself that figures out which item or
administration will be picked. As Amazon CEO Jeff Bezos once said, “A brand is
what individual say about you when you leave the room”.

The brands need to have certain qualities such as credibility and trust. If the brand is
not trusted by the consumers, another brand will confine that market instantly.
Consumers are gradually experiencing more what they perceive as an improved image
from the consumption and ownership of branded products. It is demonstrate that
brand loyalty has significantly more importance behind it than a great many people
think.

With the incessant changes in buyer values over the world, it has gotten to be basic
that brands adjust their states of mind with every individual society. Purchasers have
now turned out to be more individualized, and keeping in mind the end goal to
succeed, brands must understand that.

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As indicated by the American Marketing Association, the meaning of brand is to
recognize its image, name, plan, sentence or message, in a blend which makes the
brand.
At the end of the day, brand is similar to the spirit of the item, and what makes a
difference the most is having its uniqueness. Kotler additionally demonstrated that
"brand" originated from the Scandinavia word "brandr," which refers to making a
"hotstamp" in clients' psyches so they can perceive the organization and the dealer of
the item, and afterward have their inclination.

The marking of quick moving purchaser merchandise has turned into a basic piece of
the lives of customers. Purchasers are truly stood up to with several brands once a day
and are, in this way, spoilt for decision. From a business' point of view, brands are
sole element for advertising and business methodology. Setting up a brand that has
earned the appreciation and esteem of buyers is of essential significance in
endeavouring to assemble piece of the overall industry and boost the abundance of
their shareholders by expanding turnover through imaginative showcasing effort.

The part and effect of marking and its necessary parts of bundling, evaluating,
advancement and quality will be grilled to set up how these variables contribute
towards this joining of recognitions which decides the brand value of quick moving
buyer merchandise. Obviously, the turnover created from the offers of quick moving
customer products frames a huge part of all deals produced by retail chain stores.

A brand is essentially a sellers promise to deliver a specific set of features, benefits

and services consistently to the customers. A good brand conveys a warranty of
quality and assurance. But a brand is an even more complex symbol. A brand can
convey up to six levels of meaning.

Attributes: a brand brings to mind certain attributes. For instance the brand named
Dettol has an image of safety.

Benefits: attributes must be translated into functional and emotional benefit. The
attribute “durable” could translate into the functional benefit.

Values: the brand also says something about the producer’s value. For example
values such as high performance, safety and prestige.

Culture: the brand may represent a certain culture. German culture, organized,
efficient.
Personality: the brand can project a certain personality.

User: The brand suggests the kind of consumer who buys or uses the product.

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Brand image has been studied extensively since the 20th century due to its importance
in building brand equity. In the inexorably aggressive world commercial center,
organizations need a more profound knowledge into purchaser conduct and instruct
shoppers about the brand with a specific end goal to create viable promoting
techniques.

The positive image of a brand can build the buy expectation among costumers, and
afterward surpass the acknowledgment and steadfastness toward the brand. Hence
forth, the brand image can speak to the majority of the data thought about the item.
Despite the fact that the brand image is the purchasers' close to home recognitions, not
the brand itself, a high-review brand can indeed promote loyalty, making itself stand
out from the competition in a competitive market and create their own kingdom. All
in all, the connection between brand and brand image is complementary. A
company’s good or positive image not only shows the characteristic of a brand,
catching people’s attention, but also promotes the positive merits and values of a
brand, as well as the loyalty of consumers.

Moreover, it can improve any negative images. In other words, brand image has a lot
of influence on consumers, and effective marketing strategy is helpful in promoting
the brand and its image. Brands can determine consumer’s behaviour because they
show the reliable qualities, images and prices of the product.

Brand image makes esteem in an assortment of ways, offering customers to process

data, some assistance with differentiating the brand, creating motivations to purchase,
giving positive emotions, and giving a premise to expansions.
It can help clients to know more around a brand by making an open minded
mindfulness, by demonstrating its uniqueness and by utilizing successful
representation.
This empowers the brand to pick up a positive impression, which thus reinforces the
shopper's buy goals.

 Benefits of Strong Brand Image:

High levels of brand awareness and a positive image increase the probability of a
product being chosen and decrease the vulnerability to competitive forces. Here are
nine specific benefits which a company will obtain from a strong brand image.

Large amounts of brand mindfulness and a positive image expand the likelihood of an
item being picked and diminish the powerlessness to aggressive strengths.
Here are nine particular advantages which an organization will acquire from a solid
brand picture.
 Premium costs can be acquired. A brand with a positive image will charge bigger
edges and be less powerless to aggressive powers. There will be less pressure to
offer at low costs or offer rebates.
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 The item will be requested by the customers. Brands which customers believe is
good and trustworthy are requested particularly by the customers. Individuals will
seek out a brand they truly need.

 Competitive brands will be dismisses. A well-known brand will go about as an

obstruction to individuals changing to contenders items. A brand is guards which
is for all time and protect a company from defamation.

 Communications will be all the more promptly acknowledged. Constructive

emotions around an item will bring about individuals having the capacity to
acknowledge new claims on its execution and they will warm them up with the
goal that they can be all the more effectively convinced to purchase more.

 The brand can be built by the company. A brand which is surely understood and
all around respected turns into a stage for including new products as a few parts of
the positive symbolism will help in the selling and brand building of new items.

 Customer fulfillment will be moved forward. A positive image will give clients
utmost fulfillment when they utilize the item. They will feel surer about
purchasing it.

 The item will be pulled through the dissemination system. A brand which
individuals request can all the more effectively be sold into wholesalers and
merchants who are to a great degree receptive to what their clients need.

 Licensing opportunities can be opened up. A solid brand might bolster joint
endeavour bargains or permit the brand to be authorized for use in new
applications or in different nations.

 The organization will be worth more when it is sold. An organization with a good
brand name will get a higher premium for the goodwill it holds in the market.

The companies not only enjoy the substantial benefits of building a strong brand in
the market they also face serious and heavy penalties if a strong brand is not created
in the mind of customers. The other way to reduce the loss is to compensate by
cutting prices of the products, discounts and cost-reduction various marketing
programmes.

 Provide driven image:

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This is the image driven from the company/brand. A brand is what it is because of the
company that makes it. For instance, a brand name like Tata signals quality in
everything it from steal to salt. In fact it is likely that a couple of percentage points of
the market share acquired by any Tata brand is owned to the brand Tata itself.
Sometimes the promoter’s/CEO’s positive image enhances a brand appeal. JRD
Tata’s image had a favourable impact on the group’s name. The same thing could be
true of brand names. Amul is synonymous with dairy products. The name Dettol is the
other name for anything aseptic be it antiseptic liquid or toilet soap. This image of
Dettol can be used to get into a new product category that has the same image. For
instance, it is possible to extend it to surgical sutures.

Many times brand image is influenced by the producers name besides the brands own
personality. Research in US showed that Crest ( a P&G toothpaste) was seen as a anti
cavity toothpaste while Hindustan lever’s brand Closeup, Aim Mint, Aim Regular
were all clustered together and viewed as cosmetics rather than medicinal toothpastes.

 User driven image:

This image is driven by lifestyle of the user. A particular lifestyle is sought to be

projected through a product. This is done through user-imagery. Naughty boy shoe
has more to do with a school boy’s image rather than the product characteristic. “Men
can be soft” is the idea of that Nivea cream innovatively communicates through its
positioning “Men who dare to care”. Here Nivea focuses more than on the product
features themselves.

Brand picture of most settled items is hard to change. A positive image is one which
will continue to work for a company, even when the market situation starts to go
wrong. An organization with a splendid notoriety can endure an intermittent slippage
in some zone and the client will be insensible about that. In comparison, a company
with a poor image will be castigated for any default and there will be no exoneration.
Cadbury were slow to admit to and recollect products that were contaminated with
salmonella that unquestionably cost the companies deeply in lost sales.
Brand Image is something which can be taken in the round. This overall image is the
pool of the all the perception and judgment which people hold on a company.

1.8 Marketing Strategies in building Brand Image of FMCG:

After analysing the essential characterises of FMCG’s and their markets, these are the
various growth strategies followed by FMCG companies. Generally the success of an
FMCG depends greatly on its marketing strategies. Typically a marketer purses a
wide range of marketing activity in order to increase the demand of its product.
For instance when the prices are competitive the company uses an extensive channel
of distribution; design a mix of promotional activity to attract more customers. Thus

41
there can be a lot of strategies which a FMCG company can adopt; some of them are
listed below:

 Multibrand strategy:

A company often nurtures a number of brands in same category. There are various
motives for using a umbrella of all its brand.
The main objective behind this strategy is to cover a wide market share by including a
lot of segments so as to crater the entire market.

For example the strategy adopted by Hindustan lever they have introduced many
brands in the personal wash and detergents category so that no segment is left
untouched. It has done in the ultra-premium segment, hamam for the economy
segment and brands like liril, lux and le sancy for the intervening segments. In the
detergents market also, surf itself is available in different formssurf ultra, surf
easywash, apart from the generic product. It has the surf range in the premium
segment, and wheel for the economy segment. It has thus covered itself against any
form of attack and captured market shares in every possible segment.

Nestle has also done something similar to their range of chocolates. It has barone,
Milkybar in the popular segment which cost for Rs. 10 each for popular categories
and then it has chocolates like KitKat and KitKat senses which are slightly more
expensive than the plain milk chocolates. Munch was positioned as a snack-food. In
this way, they are covering wide Varity or usages of chocolates.

Another reason to adopt multiple brand strategy is to protect its major brand by setting
up flanked brands. Sometimes the company inherits different brand names in the
process of acquiring other companies and each brand name in the process of acquiring
other companies and each brand name has a loyal following.
An example of this strategy in the Indian context would be that of coco cola which
acquired Thumps up, prior to its entry into the market. Today they have a portfolio of
soft drinks, each with a substantial market share.
 Product flanking:

It refers to the introduction of different combinations of product prices, to crater

several market segments as possible for the company. It is basically offering a similar
product to tap diverse market opportunities with altered prices and quantities.
The introduction of oil and shampoos in small sachet has made them affordable to the
lower segment of consumers who previously could not afford to spend anywhere
between Rs. 30 and Rs. 40 for a standard bottle of a good shampoo.
Although the sachets were initially launched to guard the main brand, surprisingly
they become a big success among new and small quantity users.
The thought behind this idea is to flank the center item by advertising different
variation of size and price so that the consumer finds some variety of brands to choose
42
from. Nestle has introduced so many variations of its product where consumers can
now buy Maggie masala, Maggie oats, Maggie vegetables in packets of 10, 20 and 58.
Maggie soup is available in small packets as well as big packets. They have come up
with a whole range of the same product in many sizes and prices to flank their main
brand.

 Brand extension:

Marketers like to have a loyal consumer base so that those particular brands enjoy
high brand equity in the market. In such cases, companies make brand extensions with
the expectation that the expansions will have the capacity to ride on the equity of the
successful brands, and that the new brand will stand in its own right in the course of
time. However, at times, the idea does not work and the result is that the strong
preference for the original brand itself gets diluted in the bargain. If this strategy
works, it has been of tremendous value leading to the formation of a number of
umbrella brands in a variety of products. Brand extension strategy offers a number of
advantages.

A well respected brand name gives the product instant recognition and easier
acknowledgment. It empowers the organization to enter new item classifications all
the more effectively. A classic example of this is Colgate and its brand extensions.
Today this brand has a number of extensions like Colgate toothpaste, Colgate
toothbrushes, Colgate toothpowder, Colgate whitening product and Colgate
mouthwash. All these brands have been positioned at different segments. Dettol soap
is a successful brand extension. There is very little use on its publicizing. It gets
overflow advantage from the advertisements of its parent “Dettol antiseptic liquid”.

 Building product lines:

Many companies add related new product lines to give the consumer the entire
product he/she would like to buy under one umbrella.
Britannia and Ponds has done precisely this.– The latter company added related
products in the product range so as to offer company added related products so as to
offer their customers a one stop shop for their daily requirement they could possible
need, ranging from Cold cream, Toilet soap, Shampoo, Tooth paste, Moisturizing
lotion, Talc to Face wash.

Britannia has embraced a comparable procedure. It has presented various types of

bread rolls and supported nourishment in the previous couple of years. By including
various flavours in every product offering the organization has developed in this
industry.
By building related lines is Britannia is today the market leader in the biscuits and
related backed food products industry.

43
 New product development:

Given the extreme rivalry in many items today, organizations that neglect to grow
new items are presenting themselves to awesome danger. Their current items are
defenseless against changing purchaser needs and taste, new advances, abbreviated
item life cycle and expanded household and remote rivalry. The nourishment
classification has likewise seen developments like softies in frozen yogurts, chapattis
by HUL, prepared to eat rice by HUL and pizzas by both GCMMF and Godrej
Pillsbury.

An organization can include new items through the devoting so as to secure of

different organizations or one's own particular endeavors on new item improvement.
With the assistance of new items an organization can enter a developing business
sector surprisingly, and supplement its current product offerings. New item could
likewise mean expansion to product offering or to supplement the association's
current product offering like Probiotic Ice Cream.

Predictable item improvement is a need for organizations endeavouring to stay aware

of changes and inclines in the commercial center to guarantee their future gainfulness
and achievement.

A focused item improvement procedure ought to incorporate a vast duty to making

things that satisfy specific shopper needs or attributes. These attributes may
incorporate shoppers' craving for the accompanying: items that are superb or minimal
effort; items that give the purchaser speed or adaptability; or items that offer some
other type of separation that sets them an attractive buy.

 Innovations in core products:

In the FMCG business, the life of a product is short. Marketers, therefore continually
try to introduce new brand to offer something new and meet the changing aspirations
of the customer. A consumer is also open to try out new options and, on the other
hand, brand loyal segment is persuaded to upgrade their choice. Hence it is prudent
for a marketer to innovate from time to time both by technological expertise and/or
based on the consumer’s feedback. Such innovations are tried around the core product
of a company.

For example Colgate redefined its toothpaste by selling Colgate gel. One of the
greatest changes to hit the FMCG business was the "sachet" bug. In the most recent 3
years, cleanser organizations, cleanser organizations, hair oil organizations, scone
organizations, chocolate organizations and a large group of others, have presented
44
items in littler bundle sizes, at lower cost focuses. This is the single enormous
development to reach new clients and grow piece of the pie for worth included items
in urban India, and for general FMCG items like cleansers, cleansers and oral
consideration in country India.

 Long term outlook:

Many companies adopt a long term outlook towards growth in FMCG market. In this
process short term loss might be absorbed for the long term prospects of the company.
The example of this can be the strategy used by Kelloggs in India.
The idea of cornflakes for breakfast advanced by Kelloggs is completely American in
nature. A nation like India, which is socially so not the same as America, couldn't
acknowledge the Kelloggs offer. However Kelloggs with its long term outlook took
years before finally breaking even. Today it is the market leader in the breakfast
cereals market, and controls and covers the whole market single handed.

 Extending the PLC:

During a product’s life, an FMCG company may have to reformulate its marketing
strategy because economic conditions change, competitors make new assaults and the
product encounters new type of buyers and new requirements. Organizations and their
advertising experts watch out for the life cycle of an item. As such, when an
organization discharges another item, they do as such realizing that the item will
experience a sure life cycle.

As that life cycle nears an end, the organization must choose what to do: resign the
item by and large or develop the life span of the item through various systems.
Among these methodologies are new ways to deal with bundling and highlighting the
item, diverse evaluating procedures for the item, re-marking strategies for the item,
and extending the business sector for the item to a group of people abroad.
For instance Lifebuoy, since commencement in late nineteenth century, was an agile
and great native brand of India, coming to a large number of country clients with a
guarantee of 'wellbeing and cleanliness' as a stage of its business. Its popular
publicizing jingle, tandurusti ki raksha karta hai Lifebuoy, was famous to the point
that it empowered the brand "Lifebuoy" to be seen as a 'red carbolic cleanser' for quite
a few years.

The brand went through delayed phases of development and development amid the
majority of the second 50% of twentieth century and was confronted with a decrease
stage amid mid-21st century with deals falling at the rate of 15%–20% every year.
The descending pattern of Lifebuoy carbolic cleanser deals made Hindustan Lever
Ltd., to pull back the item and repositioned as superior to the first with more
variations and bundled beautifully. The procedure expanded the lifecycle.

45
 Expanding market by usage:

A company usually expands the market for its brand in two ways. That is, either to
expand the quantity of clients or by empowering more utilization per admission. The
use rate of the purchasers can be expanded in various ways. For example, it might
attempt to instruct or induce clients to utilize the item all the more every now and
again.

Illustration Monaco bread rolls were at first situated as the "ideal salted" scones. To
expand the events for use, it pitched itself as fantastic plain, awesome with fixings.
What was basically a plain, salted roll transformed itself into bread that can be
expended as it is or with garnishes, along these lines expanding its event for use.

Company can try to induce users to consume more of the product on each occasion.
Say a shampoo marketer might convince the user that the shampoo is more effective
with two rises rather than one or the company may try to invent new product uses and
induce consumers to use the product in more varied ways. Fevicole and M-seal was
both industrial product till they decided to enter the consumer market.

 Wide distribution network:

A very straightforward method for expanding a FMCG organization's piece of the pie
is by adding to a solid dissemination system, ideally as far as more area. Once the
reach of the product has been extended, it is likely to gain in market share because of
its deep penetration.
An extensive distribution system can be developed in due course; then again the
organization might gain another organization which has an extensive distribution
network. As Brooke bond, Hindustan Unilever has developed a good distribution
network. This stands as the prime reason behind their market leadership in business.
Organizations are progressively utilizing retail channels other than the customary
merchants to help deals and target new purchasers. The quickest developing
conventional exchange divert in India today is physicists. This advancement is
conceivably imperative for FMCG brands on the grounds that physicists ordinarily
offer more show territory, draw in an alternate profile of customer than conventional
merchants, and add believability to the items sold.

Organizations like Hindustan Unilever, Procter and Gamble, Dabur – the

Ayurvedic maker, and restorative and social insurance maker Emami have long sold
OTC tablets, diapers, ladylike cleanliness and other important items through the
scientist channel.
The distinction today is that offers of excellence items and premium beautifying
agents are moving from neighbourhood food merchants to scientific experts.
Physicists are driving offers of premium creams, antiperspirants, cleansers, face wash

46
and cleanser. L'Oreal India is pushing its L'Oreal and Garnier brands through this
channel.

 Monitoring the pulse of the consumers:

Companies spend considerable effort to find out what’s, where’s, when’s and how’s
of their consumers. They figure out all sorts of things about them that the consumers
are not at all alert of. Big companies normally conduct market research to find out
more about their consumers and step by step instructions to fulfill their requirements
and needs in a superior way.

It helps them to monitor the pulse of their buyers so that they are able to identify and
anticipate the needs of the consumers and be able to satisfy them in a better manner
than the competitors.

 Advertising and media coverage:

Promotion is required to construct mindfulness around a FMCG or brand which is

accessible in the business sector yet relatively few individuals may think about it.
Instructive publicizing figures vigorously in the spearheading phase of an item class,
where the goal is to fabricate essential interest. Enticing publicizing gets to be
essential in the focused stage, where the organization's goal is to fabricate a specific
interest for a specific brand. For example Pantene shampoo attempts to persuade
consumers that it delivers more benefits than any other brand of shampoo.
Marketers try to establish the superiority of its brand through specific comparison
with one or more brands in its product class. Reminder advertising is very common
with established products. Expensive colour ads in magazines do not have the
objectives of informing or persuading buyers. Perhaps it tries to remind people to
purchase the product.
The basic idea about growth through advertising by a company is to increase market
share through more share of mind as more information about the company and its
product will induce the viewer at time of actual demand.

 Sales promotion:

Sales promotion offers a direct incentive to buy more in the short term. They are
designed to stimulate quicker and greater purchase of particular products by
consumers or the trade.
However, a few points have to be kept in mind. They yield faster and more assessable
responses in sales than advertising does. They mainly attract the deal prone
consumers who switch brands as deals become available.
Loyal buyers normally do not change their brand a result of competitive promotion.

47
For example lays attract customers by offering those trips abroad or Colgate asking
the consumers to use their product and get a chance to meet the super stars such as
actors or models. The promotional strategy of buy one and get one free on may
FMCG products persuade customers to buy the product.

In store promotion consists of a diverse collection of incentive tools, mostly short

term, designed to stimulate quicker or greater purchase of particular products or
services by consumers or the trade. In store promotion creates a positive impact on
consumer purchase intention and form long-term relationship with the customer thus
create brand image in customers mind.
Sixty percent of all in-store purchases are unplanned, according to associate professor
of marketing at Lehigh University in Bethlehem, Pennsylvania which provide a great
scope for the marketer to use in store promotional activities. The present study aims to
understand the impact of each store promotion tool in building brand image of a
FMCG product and also the overall impact of store promotional tools on consumer
buying decision in FMCG products.

 Store promotion:

Retailing involves sale of goods and services to the end user for personal use.
Retailing encompasses business activities concerned with selling goods and services
to consumers for their personal, family or household use. It includes every sale to the
ultimate consumer that can range from cars to apparel to meals. It is the last stage in
the distribution process.

According to Philip Kotler, retailing includes all the activities involved in selling
goods or services directly to the ultimate consumer for personal or non-business use.
Indian retail industry is the fastest growing industry of the economy. The retailers
have tapped the opportunity in growing Indian market.
The results can be seen with the emergence of huge super markets and shopping malls
like Big Bazaar, Central, Pantaloons, Shopper’s Stop, Nilgiris, Pyramid and Reliance,
More and many more. Store promotion is a marketing strategy that is meant to bring
people into the store and to buy definite items that are part of the store promotion.

These strategies most often come straight from producers or the product
manufacturing company where as sometimes when it is not provided by the producers
it may be presented by the store itself. The idea is to generate additional revenue due

48
to the additional sales of the products concerned, or even to induce a brand switch
when offered by the manufacturer.

These strategies help to drive traffic into the store, to eliminate too much stock, or to
create additional revenues when sales are slumping. It also helps in building the brand
image and creates customers intention to buy a specific product or brand.

CHAPTER 2 - RESEARCH METHODOLOGY

49
Research methodology is a systematic way to solve a problem. It is a science of
studying how research is to be carried out. Essentially, the procedures by which
researchers go about their work of describing, explaining and predicting phenomena
are called research methodology. It is also defined as the study of methods by which
knowledge is gained. Its aim is to give the work plan of research.

2.1 Scope of the study:-

The study is focused on finding out the various marketing strategies used by the
marketer to create its brand image of FMCG products. The study also finds out the
overall impact of brand promotion on consumer buying decision.

2.2 Objectives:-
1. To know the consumer`s level of awareness of important consumer sales
promotion techniques adopted by marketers and their attractiveness to them.

2. To study the effectiveness of sales promotion on consumer`s buying and

consumption behaviour.

3. To understand market segmentations and its implementation in the FMCG

companies.

4. To explore different targeting strategies used by FMCG companies.

5. To study the impact of demographic variables like gender, age, qualification

and occupation.

2.3 Limitations of the study:-

1. The sample size is 64 and is restricted only to Mumbai.

2. The inference drawn out of this research work should not be applied to the
whole population as the sample selected is purposive.

3. Sample size may not be exact representative of the universe. There can be a
chance of some error to a very limited extent.

4. Large number of variables was involved in study thus many of the respondents
felt it monotonous to fill the questionnaire which could lead to responses
errors in few cases. Also there were many respondents who missed out certain
information which could affect the quality of study
CHAPTER 3 - LITERATURE REVIEW

50
Factors influencing purchase of FMCG by rural consumer in South India.

Md. Abbas Ali, Venkat Ram Raj Thumiki, Naseer Ahmed Khan (2012) 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 behavior 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.

The impact of customer-based brand equity on the operational performance of

FMCG companies in India

Bijuna C Mohan, AH Sequeira (2016) Measurement of brand equity has posed a big
challenge to the companies in the Indian fast moving consumer goods (FMCG) industry. This
paper investigates the impact of brand equity on the operational performance of businesses in
the Indian FMCG industry. The research study adopts descriptive and exploratory approaches.
The results indicate that there is correlation between brand equity and operational
performance of business. The practical implications of the findings are that brand equity has
to be effectively managed for improved operational performance of business.

Relationship between marketing planning and annual budgeting

Russell Abratt, Maria Beffon, John Ford (1994) Marketing planning and the annual
budget are two procedures that organizations engage in. Although controlled by the
marketing department and the finance department respectively, the marketing plan
and annual budget are interlinked in many ways. Investigates the importance of this
interrelationship. Reports on the results of a study of 41 fast moving consumer goods
companies following a literature review of budgeting and marketing planning.

The results show that there is a high degree of interaction between the marketing and
finance departments.

They also show that most companies tended to do the marketing plan and annual
budget together. In addition, the sales forecast, although controlled by the marketing
department, are set to meet financial targets.

The role of marketing past, present and future

51
Tim Denison, Malcolm McDonald (1995) Responds to the recent criticism
associated with marketing′s poor contribution to business success. Reviews the state
of marketing in British industry, drawing on previous research and continues by
describing the major changes experienced in the business environment, arguing that
the future of marketing depends on recognizing these trends and responding to them.
Goes on to describe the steps that leading companies, based in the UK, are taking to
become truly marketing orientated, and the ways in which they are meeting the new
challenges they face. It ends by highlighting the new opportunities for market-led
companies and concludes that marketing′s contribution to business performance is in
its ascendancy and far from decline.

The basis of market segmentation: a critical review of literature

Sulekha Goyat (2011) This article addresses the research question, what is the best
method of consumer market segmentation. It deals with the issues that are already
discussed by the researchers and also identifies the research gap for the further
researches. It focuses on the definition, basis of market segmentation and issues
related to market segmentation in detail. This research paper will provide information
about the knowledge gap and will show a path for future research in the area of
market segmentation, which is the heart of marketing now a day.

Customer base analysis: partial defection of behaviorally loyal clients in a non-

contractual FMCG retail setting

Wouter Buckinx, Dirk Van den Poel (2005) Customer relationship management
(CRM) enjoys increasing attention as a countermeasure to switching behaviour of
customers. Because foregone profits of (partially) defected customers can be
significant, an increase of the retention rate can be very profitable.

In this paper we focus on the treatment of a company's most behaviorally loyal

customers in a non-contractual setting. We build a model in order to
predict partial defection by behaviorally loyal clients using three classification
techniques:

Logistic regression, automatic relevance determination (ARD) Neural Networks and

Random Forests. Focusing on partial attrition of high-frequency shoppers who exhibit
a regular visit pattern may overcome the problem of unidentifiability of total defection
in non-contractual settings.

Classification accuracy (PCC) and area under the receiver operating characteristic
curve (AUC) are used to evaluate classifier performance on a test/hold-out sample.

Using real-life data from an FMCG retailer, we show that future partial defection can
be successfully predicted, i.e. exceeding the benchmark hurdle of the null model.

There are no significant differences in terms of performance among alternative

classification techniques. Similar to direct-marketing applications we find that past

52
behavioural variables, more specifically RFM variables (regency, frequency, and
monetary value) are the best predictors of partial customer defection. This set of
variables complements demographic variables confirming findings by other authors
about its importance in predicting churn behaviour. Moreover, additional variables
(listed in decreasing order of importance) such as the length of customer relationship,
mode of payment, buying behaviour across categories, usage of promotions and brand
purchase behaviour are shown to be moderately useful to incorporate in attrition
models.

Srivastava and Kumar (2013) analyzed that FMCG sector is a vital contributor to
India‘s Gross Domestic Product. It has been contributing to the demand of lower and
middle-income groups in India. Over 73% of FMCG products are sold to middle class
households in which over 52% is in rural India. Rural marketing has become the
hottest marketing arena for most of the FMCG companies. The rural India market is
huge and the opportunities are unlimited. After saturation and cutthroat competition in
urban areas, now many FMCG companies are moving towards the rural market and
are making new strategies for targeting the rural consumer. The Indian FMCG
companies are now busy in formulating new competitive strategies for this untapped
potential market. Therefore, a comparative study is made on growth, opportunity, and
challenges of FMCG companies in rural market. One of the most attractive reasons
for companies to tap rural consumers is that an individual‘s income is rising in rural
areas and purchasing power of lower and middle income groups is also rising and they
are eager to spend money to improve their lifestyle. This research paper provides
detailed analysis about the contribution of FMCG industry in growth of Indian rural
market and aims to discuss about customer attitude towards better purchasing decision
for FMCG products in rural market with growing awareness and brand consciousness
among people across various socio-economic classes in rural market.

Nandagopal and Chinnaiyan (2003) studied that the level of awareness among rural
consumers about the brands of soft drink was high, which was indicated by the
purchase of soft drinks by “Brand Name”. The major source of brand awareness was
word of mouth followed by advertisements, family members, relatives and friends.

Aggarwal (2014) suggested that Consumer behaviour research is the scientific study
of the processes consumers use to select, secure, use and dispose of products and
services that satisfy their needs. Firms can satisfy those needs only to the extent they
understand their customers. The main objective of this paper is to study the
demographic differences in consumers buying behaviour of persons living in Madhya
Pradesh and when they buy FMCG products.

To attain this objective a survey was developed and administered across some part of
Madhya Pradesh. The findings confirm the factors influencing consumer buying
behaviour for tooth paste brands available in the market.

Sulekha and Kiran (2013) concluded that in India more than 72% population lives in
villages and FMCG companies are famous for selling their products to the
53
middleclass households; it implies that rural India is a profitable and potential market
for FMCG producers. Rural consumers incomes are rising and now they are more
willing to buy products which improve their lifestyle. Producers of FMCG have to
craft unique marketing strategies exclusively for rural consumers. In this process they
need to understand the rural consumer buying behaviour which may differ
geographically. The present study focuses on understanding the rural consumer
buying behaviour for FMCG in Haryana. The study emphasizes on the factors which
influence the purchasing pattern of rural consumers. The study was conducted in four
districts of Haryana namely Panipat, Jind, Kuruksetra and Gurgaon.

Banumathy and Hemameena (2006) exhibited on brand preference of soft drinks in

rural Tamil Nadu by using Garrets ranking technique, to rank factors influencing the
soft drinks preferred by rural consumers. They found that, the product quality was
ranked as first, followed by retail price. Good quality and availability were the main
factors, which influenced the rural consumers for a particular brand of a product.

Narang (2006) opined that, a buyer does not stick to one brand in case of food
purchasing. They should be able to recall different brand names when they go for
purchase. Repetitive advertising can be used to promote brand recall. The product
should be associated with style and trend, so that it appeals to the youth and the brand
name should be developed as a fashion statement. Promotional schemes such as
discounts and free offers with purchase were suggested to increase rates.

Kubendran and Vanniarajan (2005) studied that, the change in consumption pattern
was due to changes in food habits. If income and urbanization increase among
consumers, the percentage of income spent on consumption increased. The urban
consumer‘s preferred mostly branded products compared to rural consumers. The
most significant factors influencing buying decisions were accessibility, quality,
regular supply, door delivery and the mode of payment.

Sampathkumar (2003) studied about brand preference in soft drinks in Telangana

region of Andra Pradesh. He found that in rural market about 37.50 per cent of
consumers preferred Thumbs-up (urban 30%), followed by Coca cola (28.50%)
(urban 37.50%), Pepsi (12.50 %) (Urban 9.00%), Limca (4.00%) (Urban 8.50%) .
Most of the urban consumers (67.00%) purchased soft drinks in nearest Kirani stores
(rural 73.00%), followed by super bazaar (27.00%) (Rural 26.00%) and others
(6.00%) (Rural 1.00%). The method of physical distribution played very vital role in
company's success and failure in the market. Transportation was among the major
functions of physical distribution. Transport adds time and place utility for the
product.

Veena (1996) studied brand switching and brand loyalty of processed fruit and
vegetable products in Karnataka state by using Markov Chain analysis. The result of
the study revealed that Maggi, Sil and Kissan were having market retention of 74.20,

54
55.78 and 48.74 percent, respectively for jam products. The equilibrium shares
determined in order to predict future market position among the different brand
showed that in long run shares of Kissan, Rex. Other brands were likely to decline,
mainly on account of increased market shares of Gala, Sil and Maggi.

Dass and Reddy (1990) concluded that the educational level of smokers significantly
influences the formation of brand loyalty of cigarettes. Less educated smokers mostly
from their brand loyalty on the basis of price, quality and easy availability of
cigarettes, whereas, the educated smokers also consider company image, filter,
packaging, influence of friends and fire holding capacity of cigarettes to form their
brand loyalty. It also found that the income level of smokers considerably influences
their smoking habits. By and large, smokers with a monthly income of below Rs.
8,000 smoke cheaper brands but with higher intensity, whereas, smokers with a
monthly income of Rs. 8,000 or more smoke costlier brands but with low intensity. It
revealed that the occupation of a person does not influence his cigarette smoking
habits and there is a high degree of brand switching by the smokers an account of
change in income, change in price, irregular supply of their brand availability of a
cheaper brand with equivalent factors of satisfaction and change in their own taste.

Muneeswaran and Vethirajan (2013) revealed that Consumer behaviour assumes

much importance in the present consumer oriented marketing system with particular
50 references 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 behaviour
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

55
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, garret ranking and chi-square. From this study it was found
that most of the consumers are influenced by brand and quality in purchase of FMCG
products. There by the researcher has suggested improving the quality in FMCG
product through product development and external monitoring.

CHAPTER 4 - DATA ANALYSIS, INTERPRETATION &

PRESENTATION

56
1. Gender

Interpretation:-
The above table and the pie chart represent that out of the sample of 64 respondents,
31 are the male respondents and 33 are the female respondents.

2. Age

57
Interpretation:-
The above table and pie chart represents that the sample of 64 respondents consist of
different age group i.e. the age group consist of 15-20 which consist of 37
respondents. Similarly the age group of 21-25 which consist of 25 respondents, the
age group of 25-35 which consist of 0 respondents, the age group of 26-30 consist of
1 respondent, the age group of 31-35 consist of 1 respondent and the age of 36-40 and
above consist of 0 respondent.

58
3. Which of the following retail formats do you prefer to buy?

Choices % Count

Departmental Store 12.5 % 8

Super Market 67.19 % 43

Convenient Store 7.81 % 5

Kirana Store 12.5% 8

12.05% 12.05%

7.81%
Departmental Stores
Super Market
Convinient Stores
Kirana Stores

67.19%

Interpretation:-
The above table and pie chart represents that 8respondents would prefer to buy from
Departmental Store. Similarly 43 respondents would prefer to buy from Super
Market, 5 respondents would prefer to buy from Convenient Stores and 8 respondents
would prefer to buy from Kirana Store.

4. Select the reason for making purchase in your preferred stores.

59
 Interpretation:-
The above table and pie chart represents
that 25 respondents make their choice for
the product on the bases of discounts.
Similarly 26 repondents make their
choice on the variety of the product, 12
respondents prefer Servives provided by
the stores, 1 respondent prefer Ambiance
in the store.

5. The frequency of purchase for the FMCGs products is

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Interpretation:-
The above table and pie chart represents that 13 respondents always buy FMCG
products, 23 respondents often buy FMCG products, 14 respondents sometime buys
FMCG goods and 14 respondents are not sure about their purchase of FMCG
products.

6. Do you think branded products are better than unbranded

products?

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Interpretation:-
The above table and pie diagram represents that 39 respondents think agree that
branded products are better than unbranded products, 6 respondents don`t think that
branded products are better than unbranded products and 19 respondents are not sure
that if branded products are better than unbranded products.

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7. How long you have been using brands?

Interpretation:-
The above table and pie chart represents that 5respondents have been using branded
products for less than a year, 11 respondents are using branded products from 1-2
years, and 11 respondents are using branded products from 2-3 years and 37
respondents have been using branded products for more than 3 years.

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8. Do you look for various schemes for FMCG products?

Interpretation:-
The above table and pie char represents that 42 respondents always look for various
schemes for FMCG products; there is only 1 respondent who doesn’t look for
schemes and there are 21 respondents who may or may not look for the various
promotional schemes.

If yes which schemes?

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Interpretation:-
The above table and pie diagram represents that there are 18 respondents which
prefers coupons schemes, there are 36 respondents for price off scheme, 6 respondents
for extra quantity scheme, 1 respondent for lucky draw scheme, 2 respondents for
bundling offers and 1 respondent for scratch card offers.

9. Who influence your preference for brands?

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Interpretation:-
The above table and pie chart represents who influences for the preference of the
brands in which 13 respondents are influenced by the Family members for the
purchase of the brands. Similarly 12 respondents are influenced by friends, 21
respondents are influenced by the advertisements and 18 respondents are self
motivated to choose their own brand.

10. Do you think internet shopping is adaptable for FMCG?

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 Interpretation:-
The above table and pie chart represents the number of respondents thinks that
internet shopping is adaptable for FMCG in which 24 respondents agree that internet
shopping is adaptable for FMCG, 4 respondents disagree on the adaptability of
internet shopping for FMCG and 36 respondents think that internet shopping may or
may not be adaptable for FMCG.

11. Product discount will make you change your FMCG enterprise

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Interpretation:-
The above table and pie chart represents that can product discount change the choice
your FMCG enterprise in which 27 respondents agree that it can change their choice
for FMCG enterprise, 6 respondents disagree and 31 respondents may or may not
change their FMCG enter price.

12. Rural marketing is more challenging and needs more customized

products to satisfy the needs of the rural customers?

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Interpretation:-
The above table and pie chart represents
that is rural market more challenging and
needs more customized products to
satisfy the needs of the rural customers
in which 14 respondents strongly agree, 34 agree, 15 respondents have neutral
response and 1 respondent disagree with it.

13. Advertising affects the sales figure of the company?

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Interpretation:-
The above table and pie chart represents that does advertising affect the sales figure of
the company in which 21 respondents strongly agree that it affect the sales figure of
the company, 31 respondents agree, 10 respondents have neutral response, 1
respondent strongly disagree and 1 respondent disagree with it.

14. Heavy investment on packaging affects the sales of the product?

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Interpretation:-
The above table and pie chart represents that can heavy investments on packaging
affects the sales of the product in which 10 respondents strongly agree with it, 30
respondents agree, 22 respondents have neutral response, 1 respondent strongly
disagree and 1 respondent disagree with it.

15. Distributors and Retailers play an important role in the success of

the organization in terms of sales of the products and profits?

Interpretation:-
The above table and pie chart represents
that doe’s distributors and retailers play an important role in the success of the
organization in terms of the sales of the product and profits in which 19 respondents
strongly agree, 32 respondents agree, 12 respondents have neutral response and 1
respondent disagrees with it.

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16. Attractive packaging enables customers to buy a product?

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Interpretation:-
The above table and pie chart represents that attractive packaging enables customers
to buy a product, in which 19 respondents strongly agree, 34 respondents agree, 11
respondents have neutral response.

17. Small Packs of FMCG products are more in demand in

comparison to bigger packs?

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Interpretation:-
The above table and pie chart represents that small pack of FMCG products are in
more demand in comparison to bigger pack in which 9 respondents strongly agree, 16
respondents agree and 39 respondents have neutral response for it.

CHAPTER 5 - CONCLUSION
In this era of globalization, market is full of FMCG companies trying to sale their
product by creating a brand image in the minds of customers. Today FMCG sector
comprises of large part of consumer’s income as fast moving consumer goods are
products which are purchased frequently and are necessary for the customers.

Customers prefer to purchase FMCG product as and when need arises by visiting an
retail store according to their convenience this gives an excellent opportunity to the
retailer to attract the customers by using various marketing strategies so that the
customer purchases 4 or 5 products instead of 1 product he actually wanted to
purchase.

Customers are becoming extremely demanding with regards to the design and style of
any store they visit. They need to be pulled in and persuaded to enter a shop or slow
down at a counter and at that point of sale so as to sell the product. Leading retailing
organizations tries to form positive store image in the customers mind so that he visits
the store again. The retailers need to identify various promotional strategies which can
be used to attract consumers towards their product.

A noteworthy goal of any promotion technique for almost every fast moving
consumer good is to maintain old customers and attract new one by creating a brand

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through inclination or association. Promotional tools help companies to create a brand
image which helps the company in long run and also motive customers to purchase
the product again.

The repurchase goal of shoppers can be advanced through different advertising

techniques utilized by advertiser as a part of stores, for example, Image Strategy,
Promotion Strategy, Media Marketing Strategy, Multiple Choices Strategy, Brand
Slogan, Integrate the Marketing Channels and Store advancement.

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