SUMMER TRAINING PROJECT REPORT

ON

CONSUMER BEHAVIOR WITH REFERENCE

TO PACKAGING IN THE FMCG SECTOR

SUBMITTED BY
AAYUSHI ARORA

04316603922

SUBMITTED IN PARTIAL FULFILLMENT

OF THE AWARD OF THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION

UNDER THE SUPERVISION OF

Prof. MEENAKSHI HANDA

UNIVERSITY SCHOOL OF MANAGEMENT STUDIES

GURU GOBIND SINGH INDRAPRASTHA
UNIVERSITY SECTOR-16-C, DWARKA, NEW DELHI-
110078
 CERTIFICATE

This is to certify that the project entitled "Consumer behavior with respect to the
packaging of the products in FMCG sector" is an academic work undertaken by
AAYUSHI ARORA, Roll No. 04316603922 under my guidance and submitted in partial
fulfilment of the requirement for the award of Master of Business Administration from the
University School of Management Studies, Guru Gobind Singh Indraprastha University,
Delhi.

Prof. Meenakshi Handa

University School of Management Studies
Guru Gobind Singh Indraprastha University
 ACKNOWLEDGEMENT

I would like to take this opportunity to thank everyone who helped me complete this difficult
report in some way. No amount of written expression can express my heartfelt gratitude to
them.

I am very thankful to HOD prof. A.K. SAINI, MBA, USMS and my Guide, PROF.
MEENAKSHI HANDA for her everlasting support and guidance on the ground of which I
have acquired a new field of knowledge. By including current organisational and
management developments, the course structure developed for this curriculum has profited.

I would like to express my gratitude to everyone who helped me complete this minor project
successfully. I am grateful to all of the participants who provided useful information as part
of my minor project.
 DECLARATION

I hereby declare that the project work entitled "Consumer behavior with respect to the
packaging of the products in FMCG sector" submitted to the University School of
Management Studies, GGSIPU is a record of an original work done by me under the
guidance of Prof. Meenakshi Handa, and this project work is submitted in the partial
fulfillment of the requirements for the award of the degree of Master of Business
Administration. I hereby certify that all the endeavour put in the fulfillment of the task are
genuine and original to the best of my knowledge and I have not submitted it earlier
elsewhere.

Aayushi Arora
 CONTENTS

S.NO TOPIC
1. Introduction

2. Analysis & Interpretation

3. Literature Review

4. Research Methodology

5. Case Studies and Examples

6. Recommendations

7. Conclusion
INTRODUCTION
Abstract
The main goal of this study is to determine how product packaging influences consumers'
purchase decisions. According to a few studies, the viewpoint and appeal of product
packaging may aid in attracting and appealing to the target market. however, consumer
preference is the major element. A marketer must therefore pay attention to a number of
packaging elements. For the majority of successful organisations, product packaging is now a
key tool for marketing a product as well as a covert promotional strategy. We also know that
a number of factors, including beautiful product packaging, have a substantial impact on
customer purchasing decisions. As a result, the main objective of this research is to determine
how product packaging affects consumer purchase behaviour. The results of the survey
revealed that product packaging had the greatest impact on consumers' decisions to buy. For
aesthetically pleasing and expertly designed product packaging, consumers are eager to buy
and pay a high price. Additionally, research revealed a significant market opportunity and
high demand for product packaging. Packaging acts as a subtle form of promotion, thus
businesses should pay more attention to it. In order to succeed in a market that is always
changing, businesses might gain by acquiring and maintaining customers.

Introduction
Our world is changing quickly, and the state of the markets is no exception. Change adoption
is an essential part of every organisation. In order to compete in the global marketplace, firms
must take into account the rapidly changing market environment, comprehend consumer
expectations, and offer goods and services that fulfil those expectations. Consumer
satisfaction in the marketplace, not at a factory or by an organisation, is the single component
that determines consumer value. Many companies are engaging in promotions and raising
their marketing budgets. As a result, product packaging has significantly increased in recent
years. It also considers the notion that appealing product packaging has a bigger influence on
consumer purchase decisions in addition to ensuring product safety. A notion, a technique,
information, a service, or a commodity that satisfies a consumer's need or desire can all be
considered products. Consumers usually make impulsive purchases and are continuously
looking for new products and services. The attractive packaging of a company's products or
services attracts customers. Every product is made up of various parts; quality, protection,
meeting consumer needs, and packaging all support the existence of the product and aid the
buyer in developing a favourable opinion of it. Other features used by businesses as
marketing tools include colour, material, design, and others. Packaging stimulates impulsive
purchases because it is the entire bundle that a company offers to its clients. An attractive box
attracts customers and increases a product's sales. It also reduces the cost of marketing and
advertising for the goods. Businesses are increasingly putting more focus on the product
packaging as a result of the intense competition among all fast-moving consumer items.
Organisations now employ packaging as a sales promotion strategy. It is similar to how 21st-
century customers consume while watching. Aesthetically pleasing food and other products
promote consumption and the idea that they taste better. There are numerous methods for
drawing attention to your product. Among these strategies, packaging the goods
attractively enough to capture the
interest and appeal of the consumer is one of the most important. Today, a product cannot be
sold without appealing packaging due to the importance of packaging increasing. Due to
increasing consumer understanding, strong rivalry, and ongoing packaging improvement,
advertisers are being put to an astounding test. Most buyers in the market don't first look into
a product's history before making a purchase.

Product packaging
The fundamental part of every product is its packaging. Without proper packing, the product
cannot be kept or moved from one place to another. packaging offers the product a unique
personality as a result. In order to keep the product secure throughout material handling,
storage, and transportation as well as to inform the intended customers on the contents of the
package, packaging's primary objective is to produce a protective and educational covering
for the product.
Packaging is the process of creating the product's container and wrapping from scratch.
Additionally, it aids in handling, protecting the goods from harmful outside influences like
sunlight and moisture, and keeping them in storage. Additionally, it aids in handling,
protecting the goods from harmful outside influences like sunlight and moisture, and keeping
them in storage.
Packaging increases the product's appeal and works well as a sales-promoting tool.
Additionally, it works as a sneaky marketing tactic. Customers are drawn to and encouraged
to buy products when they are packaged attractively. Packages are attracting the company's
attention as a sales marketing approach more and more. The bundle becomes the main selling
factor.

Consumer behaviour
It outlines the procedures customers follow before making a purchase of a good or service.
You might use search engines, respond to messages on social media, or take any other
potential action as part of this process. Consumer purchasing behaviour describes the
methods used by consumers to find, choose, purchase, use, and dispose of goods and
services. Consumer decision-making is a process that aims to fulfil needs and desires.
purchasing behaviour that involves a difficult synthesis of necessities and wants.
It is influenced by a variety of factors, such as the desires and restraints of the consumer as
well as the norms and surroundings of the social and cultural environment.

FMCG sector
Fast-moving consumer products, often known as CPGs (consumer packaged goods), have
become one of India's key businesses as consumers' financial positions have improved. In the
FMCG industry, the need-based product model is giving way to the want-based product
model. Over 115 years have passed since the start of the FMCG industry.
FMCG goods customers have undergone a substantial change in the last ten years. They went
from tooth powder to toothpaste, for instance, and now they're looking for mouthwash under
the same heading. The Indian economy is driven by the FMCG industry. This industry makes
up the fourth-largest portion of the Indian economy.
Consumer packaged goods are another name for FMCG products. These goods are
inexpensive, and clients will not have any trouble buying them. End customers purchase
FMCG goods often and sparsely.
Toilet cleaners, ice cream, tea, coffee, dairy goods, cakes, bath soaps, laundry soaps, and
other personal care products are examples of FMCG products. Consumers frequently buy and
rebuy FMCG products. Soon after being purchased, FMCG products are applied, consumed,
and replaced. When making comparisons and purchases in this sector, consumers desire to
exert the least amount of effort possible. However, because consumers are less involved, have
more options, and are attracted by a range of inducements, a lot of sophisticated marketing
tactics have emerged from these products.
REVIEW OF LITERATURE
Review of literature
Janki Chitroda, et al. (2020): In their study titled "Product Packaging Impact on Consumer
Buying Behaviour," The main objective was to uncover and research the factors that affect
consumers' purchase decisions. Consumer perceptions of the various features of product
packaging are typically favourable, according to the survey. The packaging's colour,
background image, design, language, and printed content should all be carefully considered. A
product that is presented well will make the consumer feel pleased. The results of the study
demonstrate a connection between a product's packaging and its influence on consumers'
purchasing decisions, with the visual attractiveness of the package being more important than
its quality.
Maloth Naresh Naik, et al. (2019): This study's primary goal was to ascertain how product
packaging components affected consumers' buying decisions before analysing consumers'
purchasing power. Contrary to popular opinion, the study also found that packaging serves a
range of purposes at the point of sale rather than only acting as an outside covering or box.
Packaging also acts as a stealth salesperson to influence customers' purchasing decisions.
Nora Bezaz (2014): The impact of packaging colour on children's brand name memory
(recall and recognition) has been studied in the work on "Impact of packaging colour on
children's brand name memorization (7-12-year-old)". This study looked into the relationship
between packaging colours and memorability as well as the impact of age and educational
level on brand name recall. The study found that package hue positively influences brand
recognition but not recall. Additionally, recall capacity is greatly positively impacted by age,
in contrast to brand name recognition, which is unaffected by age.
Olga Ampuero, et al. (2006): in their study on Consumer perceptions of product packaging.
This study tries to comprehend how consumers perceive products to appropriately design
packaging and to put the brand where it wants to be in customers' minds. The results of the
study indicate that each positioning strategy appears to be connected to particular packing
dimensions. According to the survey, consumers have favourable opinions of product
packaging strategies and a general comprehension of what a certain package actually
represents. Because of this, companies should emphasise product packaging design more to
effectively meet consumers' expectations.
Ehsan and Samreen lodhi (2015): in their study on ‘Brand Packaging and Consumer
Buying Behavior’ examined a variety of packaging components that influence buyers to buy
a particular product. These factors included the label, size, shape, and colour of a package.
The main arguments used in the study to support the inclusion of these factors were shifts in
consumer lifestyles, a rise in self-service, and the growth of the internet. The research
revealed that the marketing sector was significantly impacted by this change.
Deliya(2012): in the research work on ‘Consumer Behavior towards the new Packaging of
FMCG Products’ describes how the design, colour, shape, labelling, and material used in
packaging—which is often considered of as a product's container—have an impact on the
physical appearance of the product. It asserts that package design has an impact on consumer
perceptions and can play a significant role in purchasing decisions.
Kumar(2006): in his study on the ‘Role of Packaging in Marketing Product and
Organization’ indicates that packaging is thought of as the covering for a real thing, usually a
good that will be sold. It deals with the steps taken to prepare equipment for use in storage,
transportation, preservation, product identification, and packaging. It highlights how
important packaging is as an essential step in the branding process. The image and identity of
a firm are communicated through packaging. The study states that packaging must function to
offer confinement, communication, preservation, and protection.
Gopal and George (2014): in their research work on ‘Packaging, A visual Art: An Analysis
on Packaging for FMCG Goods evaluated the creative and unique aspects of packaging that
influence consumers' when choosing between one product and its rivals, purchasing
behaviours and attitudes. The study places particular emphasis on the informational content
on the box, the phrasing, the fonts, and the image selections that affect consumers'
judgements and the brand image of goods. It was suggested in this study that packaging
provide long-term, practical, and novel benefits.
Miremadi & Faghani (2012): The purpose of this study was to identify the factors
influencing customer behaviour and purchasing preferences in the Iranian FMCG sector.
discovered that in the Iranian market, anti-dandruff, attractive packaging, reinforcing, and
shining acts are the most significant factors that influence consumer purchasing. In addition,
the perceived importance of durability, quality, and price in selecting to purchase branded
shampoo should be taken into account while developing a USP strategy for branded
shampoo. Marketing managers must improve the quality of their product if they want to
retain clients and prevent them from switching to a rival brand.
Objectives of the study

- To examine the effect of packaging elements on the buying behavior on consumers.

-To learn how packaging influences consumers' choice of products.

- To investigate consumer perceptions of new packaging for existing items.

- To ascertain whether price has an impact on these decisions.

 RESEARCH
METHODOLOGY
Research methodology

Research method: Empirical Research. It is a research approach that relies on verifiable data
to generate findings. The questionnaire responses are used in this study as the observations.

Research design: descriptive research design

Data collection: Primary data has been collected through sharing a questionnaire. (Attached
at the end of the project)

Population: the respondents are from Delhi

Sampling elements: combination of students, businessmen and homemakers

Sample size: 100 respondents

Sampling technique: convenience sampling

LIMITATIONS OF THE STUDY
LIMITATIONS AND RECOMMENDATIONS

The Study is used to create a general idea on the basis of the responses of a few individuals
The study's restricted generalizability is demonstrated by the very small size of the data
sample. The sample size should be raised in order to include a larger portion of the
population and get more reliable results.
The majority of the survey respondents were from Delhi, but the study may be expanded to
a larger global audience by gathering data from various regions to provide a more complete
picture of the influence social media is having on consumer purchasing behaviour.
Because the study was only conducted for a short period of time, it cannot be utilised to
assess behaviour across time because the timing was not determined to be representative.
The research only includes data on what needs to be investigated taking the objectives into
consideration in order to raise the degree of focus of the investigation.
The population's members who could readily engage in the study and were accessible to
provide data were gathered. This might result in a bias mistake and be an inaccurate portrayal
of the population.
Industry segments

Personal Care: Products include fragrances, personal wash (soaps), cosmetics, hair care, skin
care, and oral care.

Household Care: products include household cleansers and fabric washes.

Packaged Food and Beverages: Ice cream, beverages, processed fruits, vegetables, and
dairy items are among the products, along with healthy beverages, soft drinks, bakery goods,
and chocolates.

Exports
Personal care
An estimated $989 million will be spent on personal care products, with $831 million going
to hair care and $537 million going to dental care. While the overall personal wash market is
growing at a rate of 1%, premium and midrange soap prices are rising at a rate of 10%. The
leading rivals in this market are Godrej Soaps, Reckitt & Colman, HLL, Nirma, and Nirma.
The oral care market in India, notably the toothpaste sector, continues to be under-penetrated
(with penetration levels below 45%) due to a lack of hygiene awareness in rural regions. Both
major national corporations and smaller, more regionally focused enterprises must compete
hard in the market. The $274 million Indian skin care and cosmetics market is led by HLL,
Colgate Palmolive, Gillette India, and Godrej Soaps. The introduction of several foreign
brands, including Oriflame, Avon, and Aviance, has intensified rivalry in this market area.
72% of the market for hair oils comes from the coconut oil sector. Marico and Dabur are the
top competitors in the market for coconut hair oils. Branded coconut oil has a market of
around
$174 million in US dollars.

Household care
Over the past five years, the demand for detergents has increased at a pace of 10 to 11%
annually. Due to their ease of use, higher purchasing power, intense promotion, and growing
use of washing machines and detergents outsell bars in the urban market. In terms of
quantities, the regional and small unorganised firms represent a sizable portion of the overall
detergent industry.

Food and beverage

Food
The Indian food processing market is estimated to be worth $65.6 billion USD, including
20.6 billion USD in value-added goods, according to the Ministry of Food Processing. The
market for health beverages is estimated to be worth $230 billion in the US; that for bread
and biscuits is $1.7 billion; that for chocolates is $73 million; and that for ice creams is $188
million. Over US $1.1 billion is spent on the semi-processed/ready-to-eat food market. In
order to serve both domestic and foreign markets, large biscuit, confectionery, soya
processing plants have also been built. The three most popular packaged food categories are
packaged tea, cookies, and soft drinks.

Beverages
In markets like coffee and tea, there is an oversupply in the Indian beverage industry. But
more than half of this is offered in a loose or unpacked form. The tea industry dominates the
hot beverage market in India. Different regions of the nation's consumers have diverse tastes.
In 2000, the tea market was split 51:49 between urban and rural areas. Southern states are the
largest consumers of coffee. 19,600 tonnes, or $87 million, make up the whole packaged
coffee industry. are thought to be sold annually in the soft drink (carbonated beverages and
juices) sector. With monthly consumption ranging from 15 million crates in the offseason to
25 million crates in the peak season, the market is very seasonal. Urban areas dominate the
market, with rural areas contributing 25%. The two leading soft drink brands in India are
Coca-Cola and Pepsi. India has a market for mineral water of 65 million cartons ($50
million). The expected monthly consumption is 4.9 million crates on average.

Exports
India is one of the top producers of a wide range of FMCG products worldwide, although
exports only account for a relatively small portion of overall production. In 2001–2002, the
food processing sector exported a total of $2.9 billion in US dollars, with marine items
making up 40% of those exports. Even though Indian businesses are expanding abroad, they
are concentrating more on foreign markets like Bangladesh, Pakistan, Nepal, the Middle East,
and the CIS states due to similarities in these countries' lifestyles and consumption patterns to
India. Top exporting businesses include HLL, Godrej Consumer, Marico, Dabur, and Vicco
labs.
DATA ANALYSIS
Question 1.

Analysis: The survey respondents were mostly young adults. i.e. 20-30 years of age. This
implies that the responses are based on the mindset of a younger generation. Therefore the
conclusion must be drawn keeping this in mind.

Question 2.

Analysis: Out of all the respondents 53% respondents were males and the rest were females.
Question 3.

Analysis: Out of all the respondents, 54% were students and 17% were businessmen, the rest
belonged to other professions.

Question 4.

Analysis: The respondents in this survey, mostly belonged to a middle class family i.e. with
annual income ranging from 10-15L.
Question 5.

Analysis: Most of the respondents feel indifferent towards the packaging of the product as
long as the quality of the product is up to their standards. However some of the respondents
care a lot about the packaging of the product, this implies that some responses will buy the
product only if it appeals to them.

Question 6.

Analysis: People are thoughtful enough. They think about the packages & designs displayed
at the market. This means that somewhere there is some relation that is built up between the
packaging and consumer behavior.
Question 7.

Analysis: A company should work on all three aspects to satisfy consumers best as shown by
49% of the respondents. Most consumers prefer the packaging to be protective so as the
product is not damaged. However a fair number of consumers care about the eco friendliness
and attractiveness of the package as well.

Question 8.

Analysis: Today, the quality of the product still matters. Changes in the label or packaging
make much of a difference. 31% of respondents say that they will change the product due to
change in packaging and the other 33% might do that depending upon the new packaging,
whereas 36% refuse to change the product on the basis of change in packaging.
Question 9.

Analysis: 70% of the respondents say that they read the ingredients mentioned on the label.
This helps us determine that the respondents care more about what they are consuming.

Question 10.

Analysis: 76% of the respondents say that the information on the packet help evaluate the
product. This shows that nutritious information about the product is important to the
consumers.
Question 11.

Analysis: 48% respondents believe that design on the product is an important decision
making element whereas 30% respondents say it is an important sometimes. But 22%
respondents believe that design on the product is not very important.

Question 12.

Analysis: out of all the respondents 65% believe that price range does affect packaging.
People are willing to pay up until a certain price range. They’ll buy a product just on the basis
of its packaging.
Question 13.

Analysis: As per the demographics of the survey, since majority are middle class people they
say that if the product is between Rs. 500 to Rs.1000 people are willing to buy it just for the
packaging.
CONCLUSION
Findings of the Study:

● From the responses collected it can be stated that the details

mentioned on the label make a difference. The consumer is sensitive
when it comes to the details provided on the label. So, the content
on the label should be rightly presented.

● The quality of the product provided holds more importance.

When it comes to choosing whether to change the product due to
the
change in packaging most of the respondents disagreed. They would
prefer to continue with that product. So, no change in packaging
won’t change consumer behavior in most of the cases.

● The relation between the packaging & consumer is delicate in the

case of youth. As the data collected was mostly of the age group
15- 40 years, so this relationship can be established amongst that
age
group only.

● Packaging is very important as the durability of the packet is

in direct proportion with the durability of the product.
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QUESTIONNAIRE