Professional Documents
Culture Documents
Sangam Singh
Sangam Singh
ON
SESSION-2020-2023
SUBMITTED TO: SUBMITTED BY:
Dr. Ashutosh Shukla Sangam Singh
I claim the report to be my indigenous work and has not been published any where else.
Sangam Singh
MY sincere gratitude to Dr. Ashutosh Shukla (Assistant Professor) and all the
BBA faculty for their support in completion of this project who has through her vast
experience and knowledge has been able to guide me, both ably and successfully
towards the completion of the project.
I express my sincere thanks to my parents & friends for their constant support and
suggestions to accomplish my goals.
Last but not the least I thank God for his love and grace that enabled me to complete
this project.
Sangam Singh
Executive summary
The Indian FMCG sector is the fourth largest sector in the economy with a total market size in
excess of US$ 13.1 billion.
Introduction
Fast Moving Consumer Goods (FMCG), are products that are sold quickly at relatively low cost.
Though the absolute profit made on FMCG products is relatively small, they generally sell in large
quantities, so the cumulative profit on such products can be large. Examples of FMCG generally
include a wide range of frequently purchased consumer products such as toiletries, soap,
cosmetics, teeth cleaning products, shaving products and detergents, as well as other non-durables
such as glassware, light bulbs, batteries, paper products and plastic goods.[1] FMCG may also
include pharmaceuticals, consumer electronics, packaged food products and drinks, although these
are often categorized separately.
FMCG products contrast with durable goods or major appliances such as kitchen appliances, which
are generally replaced less than once a year. In Britain, "white goods" in FMCG refers to large
household electronic items such as refrigerators. Smaller items such as TV sets and stereo systems
are sometimes termed "brown goods".[
FMCG industry, alternatively called as CPG (Consumer packaged goods) industry primarily deals
with the production, distribution and marketing of consumer packaged goods. The Fast Moving
Consumer Goods (FMCG) are those consumables which are normally consumed by the consumers
at a regular interval. Some of the prime activities of FMCG industry are selling, marketing, financing,
purchasing, etc. The industry also engaged in operations, supply chain, production and general
management.
FMCG industry provides a wide range of consumables and accordingly the amount of money
circulated against FMCG products is also very high. The competition among FMCG manufacturers
is also growing and as a result of this, investment in FMCG industry is also increasing, specifically in
India, where FMCG industry is regarded as the fourth largest sector with total market size of
US$13.1 billion. FMCG Sector in India is estimated to grow 60% by 2010. FMCG industry is regarded
as the largest sector in New Zealand which accounts for 5% of Gross Domestic Product (GDP).
Some common FMCG product categories include food and dairy products, glassware, paper
products, pharmaceuticals, consumer electronics, packaged food products, plastic goods, printing
and stationery, household products, photography, drinks etc. and some of the examples of FMCG
products are coffee, tea, dry cells, greeting cards, gifts, detergents, tobacco and cigarettes,
watches, soaps etc.
Some of the merits of FMCG industry, which made this industry as a potential one are low
operational cost, strong distribution networks, presence of renowned FMCG companies. Population
growth is another factor which is responsible behind the success of this industry
FMCG industry creates a wide range of job opportunities. This industry is a stable, diverse,
challenging and high profile industry providing a wide range of job categories like sales, supply
chain, finance, marketing, operations, purchasing, human resources, product development, general
management.
Some of the well known FMCG companies are Sara Lee, Nestlé, Reckitt Benckiser, Unilever, Procter
& Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi and Mars etc
WHY INDIA
Large domestic market
India is one of the largest emerging markets, with a population of over one billion. India is one of
the largest economies in the world in terms of purchasing power and has a strong middle class base
of 300 million.
Now India has two major sectors where the market can be spotted. Urban and Rural markets.
Rural-urban profile
Urban Rural
% Distribution (2001-02) 28 72
Around 70 per cent of the total households in India (188 million) resides in the rural areas. The total
number of rural households is expected to rise from 135 million in 2001-02 to 153 million in
2009-10, this presents the largest potential market in the world. The annual size of the rural FMCG
market was estimated at around US$ 10.5 billion in 2001-02. With growing incomes at both the
rural and the urban level, the market potential is expected to expand further.
India - a large consumer goods spender
An average Indian spends around 40 per cent of his income on grocery and 8 per cent on personal
care products. The large share of fast moving consumer goods (FMCG) in total individual spending
along with the large population base is another factor that makes India one of the largest FMCG
markets.
Consumption pie
EXPENDITURE
Consumer Durables
clothing
vacations
eating out
footwear
entertainment
accessories
books and music
grocery
personal care
home textiles
savings and investments
Even on an international scale, total consumer expenditure on food in India at US$ 120 billion is
amongst the largest in the emerging.
Consumer Profile
1999 2001 2006
Urbanisation (%) 26 28 31
Rapid urbanisation, increased literacy and rising per capita income, have all caused rapid growth
and change in demand patterns, leading to an explosion of new opportunities. Around 45 per cent
of the population in India is below 20 years of age and the young population is set to rise further.
Aspiration levels in this age group have been fuelled by greater media exposure, unleashing a latent
demand with more money and a new mindset.
Demand-supply gap
Currently, only a small percentage of the raw materials in India are processed into value added
products even as the demand for processed and convenience food is on the rise. This demand
supply gap indicates an untapped opportunity in areas such as packaged form, convenience food
and drinks, milk products etc. In the personal care segment, the low penetration rate in both the
rural and urban areas indicates a market potential.
Health care –
Fabric wash (laundry soaps and synthetic detergents); household cleaners (dish/utensil
cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellents,
metal polish and furniture polish).
Food and beverages –
Health beverages; soft drinks; staples/cereals; bakery products (biscuits, bread, cakes); snack
food; chocolates; ice cream; tea; coffee; soft drinks; processed fruits, vegetables; dairy
products; bottled water; branded flour; branded rice; branded sugar; juices etc.
Personal care –
The structure
The Indian FMCG sector is the fourth largest sector in the economy and creates employment for
three million people in downstream activities. Within the FMCG sector, the Indian food processing
industry represented 6.3 per cent of GDP and accounted for 13 per cent of the country's exports in
2003-04. A distinct feature of the FMCG industry is the presence of most global players through
their subsidiaries (HLL, P&G, Nestle), which ensures new product launches in the Indian market
from the parent's portfolio.
• Heavy launch costs on new products on launch advertisements, free samples and product
promotions.
• Majority of the product classes require very low investment in fixed assets
• Extensive distribution networks and logistics are key to achieving a high level of penetration in
both the urban and rural markets
• Factors like low entry barriers in terms of low capital investment, fiscal incentives from
government and low brand awareness in rural areas have led to the mushrooming of the
unorganised sector
Here are a few breakups of what Indian standards look like when compared with the other similar
or powerfull countries. Few examples as to where our country stands…
Indian
Beverages
The Indian beverage industry faces over supply in segments like coffee and tea. However, more
than half of this is available in unpacked or loose form. Indian hot beverage market is a tea
dominant market. Consumers in different parts of the country have heterogeneous tastes. Dust tea
is popular in southern India, while loose tea in preferred in western India. The urban-rural split of
the tea market was 51:49 in 2000. Coffee is consumed largely in the southern states. The size of the
total packaged coffee market is 19,600 tonnes or US$ 87 million. The urban rural split in the coffee
market was 61:39 in 2000 as against 59:41 in 1995. The total soft drink (carbonated beverages and
juices) market is estimated at 284 million crates a year or US$ 1 billion. The market is highly
seasonal in nature with consumption varying from 25 million crates per month during peak season
to 15 million during offseason. The market is predominantly urban with 25 per cent contribution
from rural areas. Coca cola and Pepsi dominate the Indian soft drinks market.
Exports
India is one of the world's largest producers for a number of FMCG products but its exports are a
very small proportion of the overall production. Total exports of food processing industry was US$
2.9 billion in 2001-02 and marine products accounted for 40 per cent of the total exports. Though
the Indian companies are going global, they are focusing more on the overseas markets like
Bangladesh, Pakistan, Nepal, Middle East and the CIS countries because of the similar lifestyle and
consumption habits between these countries and India. HLL, Godrej Consumer, Marico, Dabur and
Vicco laboratories are amongst the top exporting companies.
National Players
Domestic players
Britannia India Ltd (BIL)
Britannia India Ltd was incorporated in 1918 as Britannia Biscuit Co Ltd and currently the Groupe
Danone (GD) of France (a global major in the food processing business) and the Nusli Wadia Group
hold a 45.3 per cent equity stake in BIL through AIBH Ltd (a 50:50 joint venture). BIL is a dominant
player in the Indian biscuit industry, with major brands such as Tiger glucose, Mariegold, Fifty-Fifty,
Good Day, Pure Magic, Bourbon etc. The company holds a 40 per cent market share in the overall
organised biscuit market and has a capacity of 300,000 tonne per annum. Currently, the bakery
product business accounts for 99.1 per cent of BIL's turnover. The company reported net sales of
US$ 280 million in 2002-03. Britannia Industries Ltd (BIL) plans to increase its manufacturing
capacity through outsourced contract manufacturing and a greenfield plant in Uttaranchal to
expand its share in the domestic biscuit and confectionery market.
Dabur India Ltd
Established in 1884, Dabur India Ltd is the largest Indian FMCG and ayurvedic products company.
The group comprises Dabur Finance, Dabur Nepal Pvt Ltd, Dabur Egypt Ltd, Dabur Overseas Ltd and
Dabur International Ltd. The product portfolio of the company includes health care, food products,
natural gums & allied chemicals, pharma, and veterinary products. Some of its leading brands are
Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola, Lal Dant Manjan, Pudin Hara and the Real
range of fruit juices. The company reported net sales of US$ 218 million in 200304. Dabur has
firmed up plans to restructure its sales and distribution structure and focus on its core businesses of
fast-moving consumer good products and over-the-counter drugs. Under the restructured set-up,
the company plans to increase direct coverage to gap outlets and gap towns where Dabur is not
present. A roadmap is also being prepared to rationalise the stockists' network in different regions
between various products and divisions.
Indian Tobacco Corporation Ltd (ITCL)
Indian Tobacco Corporation Ltd is an associate of British American Tobacco with a 37 per cent
stake. In 1910 the company's operations were restricted to trading in imported cigarettes. The
company changed its name to ITC Limited in the mid seventies when it diversified into other
businesses. ITC is one of India's foremost private sector companies with a turnover of US$ 2.6
billion. While ITC is an outstanding market leader in its traditional businesses of cigarettes, hotels,
paperboards, packaging and agriexports, it is rapidly gaining market share even in its nascent
businesses of branded apparel, greeting cards and packaged foods and confectionary. After the
merger of ITC Hotels with ITC Ltd, the company will ramp up its growth plans by strengthening its
alliance with Sheraton and through focus on international projects in Dubai and the Far East. ITC's
subsidiary, International Travel House (ITH) also aims to launch new products and services by way
of boutiques that will provide complete travel services.
Marico
Marico is a leading Indian Group incorporated in 1990 and operating in consumer products,
aesthetics services and global ayurvedic businesses. The company also markets food products and
distributes third party products. Marico owns well-known brands such as Parachute, Saffola,
Sweekar, Shanti Amla, Hair & Care, Revive, Mediker, Oil of Malabar and the Sil range of processed
foods. It has six factories, and sub-contract facilities for production. In 2003-04, the company
reported a turnover of US$ 200 million. The overseas sales franchise of Marico's branded FMCG
products is one of the largest amongst Indian companies. It is also the largest Indian FMCG
company in Bangladesh. The company plans to capture growth through constant realignment of
portfolio along higher margin lines and focus on volume growth, consolidation of market shares,
strengthening flagship brands and new product offerings (2-3 new product launches are expected
in 2004-05). It also plans to expand its international business to Pakistan.
Nirma Limited
Nirma Ltd, promoted by Karsanbhai Patel, is a homegrown FMCG major with a presence in the
detergent and soap markets. It was incorporated in 1980 as a private company and was listed in
fiscal 1994. Associate companies' Nirma Detergents, Shiva Soaps and Detergents, Nirma Soaps and
Detergents and Nilnita Chemicals were merged with Nirma in 1996-1997. The company has also set
up a wholly owned subsidiary Nirma Consumer Care Ltd, which is the sole marketing licensee of the
Nirma brand in India. Nirma also makes alfa olefin, fatty acid and glycerine. Nirma is one of the
most successful brands in the rural markets with extremely low priced offerings. Nirma has plants
located in Gujarat, Madhya Pradesh and Uttar Pradesh. Its new LAB plant is located in Baroda and
the soda ash complex is located in Gujarat. Nirma has strong distributor strength of 400 and a retail
reach of over 1 million outlets. The company reported gross sales of US$ 561 million in 2003-04. It
plans to continue to target the mid and mass segments for future growth.
Foreign Players
Data collection
Sample unit:
Sample size:
The researcher will take stratified random sampling as the sampling procedure.
1. Primary data: it will be collected with the help of a self administered questionnaire. This
questionnaire aims to gather information related to various Branded products.
2. Secondary data: it will be collected with the help of books, research papers, magazines,
news papers, journals, internet, etc.
Research instruments:
Questionnaire design:
As the questionnaire is self administrated one, the survey is kept simple and user friendly. Words
used in questionnaire are readily understandable to all respondent. Also technical jargons are
avoided to ensure that there is no confusion for respondents.
Panoramic View
India has a population of over 1 billion & 4 climatic Zones. Several religious & personal
beliefs, 15 languages, different social customs & food habits categorize Indian consumer class.
Besides this, India is also different in culture if compared with other Asian countries. Therefore,
India has high distinctiveness in demand and the companies in India can get lot of market
opportunities for various classes of consumers. Consumer goods marketers’ experience that dealing
with India is like dealing with many small markets at the same time.
Indian consumer goods market is expected to reach $400 billion by 2010. India has the
youngest population amongst the major countries. There are a lot of young people in India in
different income categories.
Consumer goods marketers are often faced with a dilemma regarding the choice of
appropriate market segment.
In India they do not have to face this dilemma largely because rapid urbanization, increase
in demand, presence of large number of young population, any number of opportunities is
available. The bottom line is that Indian market is changing rapidly and is showing unprecedented
consumer business opportunity.
India has a population of 1.095 billion people, comprising of 1/6th of the world
population. India's population can be divided into 5 groups on the basis of annual household
income. These groups are:
1. Higher income
2. Upper middle income
3. Middle middle income
4. Lower middle income
5. Lower income
The income classification does not represent a real scenario for an international business
because the purchasing power of currencies differs significantly. The real purchasing power of
Indian rupee is higher than the international exchange value.
The Rich Rs. 215,000 and more 1.2 2.0 6.2 416%
The Consuming Class Rs 45- 215,000 32.5 54.6 90.9 179%
The Climbers Rs. 22-45,000 54.1 71.6 74.1 37%
The Aspirants Rs. 16-22,000 44 28.1 15.3 -65%
The Destitute Below Rs. 16,000 33 23.4 12.8 -61%
Total 164.8 180.7 199.2 21%
Source: NCAER
Socio economic classification
Socio-Economic Classification
Occupation Education
Less
5-9 yrs
than 4 School Some
Illiterate of Graduate Post-graduate
yrs in certificate college
school
school
Skilled E2 E1 D C C B2 B2
Unskilled E2 E2 E1 D D D D
Shop owner D D C B2 B2 A2 A2
Petty trader E2 D D C C B2 B2
Employer of-
Above 10
B1 B1 A2 A2 A1 A1 A1
persons
Below 10
C B2 B2 B1 A2 A1 A1
persons
None D C B2 B1 A2 A1 A1
Clerk D D D C B2 B1 B1
Supervisor D D C C B2 B1 A2
Professional D D D B2 B1 A2 A1
Senior
B1 B1 B1 B1 A2 A1 A1
executive
Junior
C C C B2 B1 A2 A2
executive
Source: Indian readership survey (IRS)
Sections A & B refer to High-class- constitutes over a quarter of urban population
Sec C refers to Middle-class-- constitutes 21% of the urban population
Sections D & E refer to Low-class-- constitutes over half the urban
population
To understand the table, consider an example: A trader whose monthly household income (MHI) is
more than that of a person in section A cannot be included in this SEC because his educational
qualification or occupations do not qualify him for inclusion.
Sec C constitutes households whose Chief Wage Earners are employed as:
Clerk/Supervisor 37%
3/4th of them have studied till 10th or 12th class while the remaining 1/4th have studied till 9th
class.
Less than half of the Chief Wage Earners of households belonging to sections D & E are unskilled
Education of chief
Type of House
wage earner
workers. Petty Traders are 18%, while Skilled Workers are about 28%. More than 80% of the
population of upper strata consumers is living in the top 7 cities. Those top 7 cities are Mumbai,
Kolkata, Delhi, Chennai, Ahmedabad, Bangalore, and Hyderabad. With increase in economic
prosperity, this population (upper strata consumers) is growing at 10 percent annually.
Age demographics
India is a very young nation, if compared with some advanced and developed
countries. Nearly two- thirds of its population is below the age of 35, and nearly 50 % is below 25.
Marketers explain that the boom in the consumption level and leisure related expenditure is
because of this young population. It will have a significant impact over the consumer goods market.
In addition to that, it is expected that this will generate trade opportunities and continuous
investment in the economy. There is huge potential for further consumption of goods and services
due to the increased level of disposable income. The expenditure on essential goods and services
has a higher share in developing countries as compared with that of developed countries.
Below 4 yrs
113.5 108.5 119.5
5-14 yrs
221.2 239.1 233.2
15-19 yrs
122.4 109.0 90.7
20-34 yrs
279.1 246.8 224
35-54 yrs
239.2 207.3 178.1
55 & above
118.7 101.7 88.7
Total
1094.1 1012.4 934.2
Consumption Trends
Food Essentials
45.68%
Clothing
4.9%
Footwear
0.63%
Medicare
4.25%
Home Goods
3.25%
Geographical dispersion
There is large difference in economic prosperity levels among several states in India, linked to the
wealth creation from trade, industrial, and agricultural development. There are poor districts in
many states, classified according to their market potential. India has 500 districts, out of which 150
districts (category A) and next 150 districts (category B) account for 78% and 15% of the national
market potential respectively. Remaining 200 districts (category C) are backward and account for
only 7% of national market potential. Category C districts have 40% of the geographical share.
Analysis
The reaction of people towards various SOAP brands can be tabulated in the following
manner:
Percentage 36 22 18 24
In the survey that the researcher conducted, it could easily be concluded that LUX, the
product of HUL was highly in demand. LUX, the product of HUL covers 36% of the market share.
After LUX, the other brands (EXCEPT LUX, DETTOL, LIFEBUOY) covers 24% of the market share. This
is then followed by DETTOL, the product of RECKITT BENCKISER with a market share of 22%, which
is then followed by LIFEBUOY, the product of HUL with a market share of 18%.
This data can be graphically explained with the help of the following bar graph:
40
35
30 lux
25
dettol
percentage 20
lifebuoy
15
others
10
5
0
brands
2. Which pack u prefer to use?
In order to determine the income pattern of the consumers, it was necessary for the
researcher to distribute the consumers on the basis of their demand for the various packs of
SOAP brands available in the market.
However, the reaction of people towards various packs of SOAP can be tabulated in the
following manner:
Percentage 56 44
In the survey that the researcher conducted, she tried to differentiate amongst people,
with below average household income, average household income & above household income.
This classification can be done on the basis of the daily expenditure that people make. 56%
consumers demand single pack. 44% consumers demand family packs i.e. 3 in 1 pack.
This data can be graphically explained with the help of the following bar graph:
60
50
40
percentage 30 single pack
family pack ( 3 in 1 )
20
10
0
packs preferred by
customers
1. Which tea u prefer to use?
The reaction of people towards various TEA brands can be tabulated in the following manner:
Percentage 32 28 18 22
In the survey that the researcher conducted, it could easily be concluded that TATA TEA, the
product of TATA has a market share of 32%. This is followed by, BROOKE BOND, with a market
share of 28%. Followed by other brands (EXCEPT TATA TEA, BROOKE BOND, TAJ MAHAL) with a
market share of 22%. This is finally followed by TAJ MAHAL, the product of HUL which holds18% of
the market share.
This data can be graphically explained with the help of the following bar graph:
35
30
25 tata tea
20 brooke bond
percentage taj mahal
15
others
10
5
0
brands
2. Which tea pack u prefer to use?
In order to determine the income pattern of the consumers, it was necessary for the
researcher to distribute the consumers on the basis of their demand for the various packs of
TEA brands available in the market.
However, the reaction of people towards various TEA packs can be tabulated in the
following manner:
percentage 48 32 20
In the survey that the researcher conducted, she tried to differentiate amongst the
people, with below average household income, average household income & above household
income. This classification can be done on the basis of the daily expenditure that people make.
However, it can be concluded that sachets are most commonly used by the people .i.e., 48%
consumers demand sachet packs. 32% consumers demand medium pack.20% consumers
demand large pack.
This data can be graphically explained with the help of the following diagram:
50
40
sachet
30
medium pack
percentage
20 large pack
10
0
packs preferred by customers
3. Which tooth paste u prefer to use?
In the initial years, the rural consumers preferred tooth powders, datoons etc. But
from the last decade, the preference of consumers towards toothpaste has been changed. A
huge number of toothpastes of different companies are sold in rural market.
However, the reaction of people towards various TOOTH PASTES can be tabulated as
follows:
Percentage 27 35 22 16
In the survey that the researcher conducted, it could easily be seen that COLGATE, the product
of COLGATE PALMOLIVE is the market leader, which covers 35% of the total market. After that,
PEPSODENT, the product of HUL is demanded by the customers, which covers 27% of the
market share. Followed by CLOSE – UP, the product of HUL is demanded by the customers,
which covers 22% of the market share. Which is then followed by others brands (EXCEPT
PEPSODENT, COLGATE, CLOSE - UP), which covers 16% of the total market share.
This data can be graphically explained with the help of the following bar graph:
35
30
25 pepsodent
20 colgate
percentage close up
15
others
10
5
0
brands
4. Which pack u prefer to use?
In order to determine the income pattern of the consumers, it was necessary for the researcher
to distribute the consumers on the basis of their demand for the various packs of TOOTH PASTE
brands available in the market.
However, the reaction of people towards various TOOTH PASTE packs can be tabulated in
the following manner:
Percentage 34 48 18
In the survey that the researcher conducted, she tried to differentiate amongst the people,
with below average household income, average household income & above household income. This
classification can be done on the basis of the daily expenditure that people make. However, it can
be concluded that 34% consumers demand small packs. 48% consumers demand medium packs.
18% consumers demand large pack.
This data can be graphically explained with the help of the following graph:
50
40
small pack
30
medium pack
percentage
20 family pack
10
0
packs preferred by customers
5. Which detergent u prefer to use?
The reaction of people towards various DETERGENT brands can be tabulated in the following
manner:
Percentage 27 35 22 16
In the survey that the researcher conducted, it could be easily concluded that RIN, the
product of HUL captures 35% of the total market share. This is followed by SURF, the product of
HUL which has a market share of 27%. This is followed by TIDE, the product of PROCTER &
GAMBLE which has a market share of 27%. This is finally followed by other brands (EXCEPT
SURF, RIN, TIDE) which captures 16% of the market share.
This data can be graphically explained with the help of the following bar graph:
demand of detergents
35
30
25 surf
20 rin
percentage tide
15
others
10
5
0
brands
6. Which pack u prefer to use?
In order to determine the income pattern of the consumers, it was necessary for the researcher
to distribute the consumers on the basis of their demand for the various packs of DETERGENT
brands available in the market.
However, the reaction of people towards various DETERGENT packs can be tabulated in
the following manner:
Percentage 43 27 30
In the survey that the researcher conducted, she tried to differentiate amongst the
people, with below average household income, average household income & above household
income. This classification can be done on the basis of the daily expenditure that people make.
However, 43% consumers demand sachet packs. 30% consumers demand family packs. 27%
consumers demand medium packs.
This data can be graphically explained with the help of the following bar graph:
45
40
35
30 sachet
25 medium pack
percentage
20 family pack
15
10
5
0
packs preferred by customers
7. Which shampoo u prefer to use?
The reaction of people towards various SHAMPOO brands can be tabulated in the following
manner:
Head &
Brands Clinic plus Sunsilk Others
shoulders
Percentage 33 25 28 14
In the survey, that the researcher conducted it can easily be concluded that CLINIC PLUS,
the product of HUL, captures the major portion of the market with a market share of 33%. This is
followed by HEAD & SHOULDERS, the product of PROCTER & GAMBLE which holds 28% of the
market share. This is followed by SUNSILK, the product of HUL which holds 25% of the market
share. Finally followed by other brands (EXCEPT CLINIC PLUS, SUNSILK, HEAD & SHOULDERS) with a
market share of 14%.
This data can be graphically explained with the help of the following bar graph:
demand of shampoo
35
30
25 clinic plus
20 sunsilk
percentage
15 head & shoulders
others
10
5
0
brands
8. Which pack u prefer to use?
In order to determine the income pattern of the consumers, it was necessary for the researcher
to distribute the consumers on the basis of their demand for the various packs of SHAMPOO
brands available in the market.
However, the reaction of people towards various SHAMPOO packs can be tabulated in the
following manner:
Shampoo
sachet Small pack Medium pack Family pack
packs
Percentage 23 32 28 17
In the survey that the researcher conducted, she tried to differentiate amongst the people,
with below average household income, average household income & above household income. This
classification can be done on the basis of the daily expenditure that people make. However, 32%
consumers demand SMALL PACK. 28% consumers demand medium pack. 17% consumers demand
large packs.
This data can be graphically explained with the help of the following bar graph:
35
30
25 sachet
20 small pack
percentage medium pack
15
large pack
10
5
0
packs preferred by customers
9. Which biscuits u prefer to use?
The reaction of people towards various BISCUITS brands can be tabulated in the following manner:
Percentage 24 38 21 17
In the survey, that the researcher conducted, it can easily be concluded that GOOD DAY, the
product of BRITANNIA holds a major market share of 38%. This is followed by MARIE GOLD, another
product of BRITANNIA which holds 24% of the market share. After that, PARLE- G, the product of
PARLE, holds 21% of the market share. This is followed by other brands (EXCEPT MARIE GOLD,
GOOD DAY, PARLE- G) which hold a market share of 17%.
This data can be graphically explained with the help of the following bar graph:
demand of biscuits
40
35
30 marie gold
25 good day
percentage 20 parle G
15 others
10
5
0
brands
10. Which hair oil u prefer to use?
The reaction of people towards various HAIR OIL brands can be tabulated in the following manner:
Percentage 37 29 19 15
In the survey, that the researcher conducted, it can easily be concluded that PARACHUTE,
the product of MARICO captures 37% of the total market share. This is followed by DABUR AMLA,
the product of DABUR which captures 29% of the total market share. This is followed by DABUR
VATIKA, another product of DABUR which captures 19% of the market. And after that, followed by
other brands (EXCEPT PARACHUTE, DABUR AMLA, DABUR VATIKA) captures 15% of the market
share.
This data can be graphically explained with the help of the following bar graph:
40
35
30 parachute
25 dabur amla
percentage 20 dabur vatika
15 others
10
5
0
brands
11. Which pack u prefer to use?
In order to determine the income pattern of the consumers, it was necessary for the
researcher to distribute the consumers on the basis of their demand for the various packs of
HAIR OIL brands available in the market.
However, the reaction of people towards various HAIR OIL packs can be tabulated in
the following manner:
Percentage 32 41 27
In the survey that the researcher conducted, she tried to differentiate amongst the people,
with below average household income, average household income & above household income. This
classification can be done on the basis of the daily expenditure that people make. However, 41%
consumers demand medium packs. After that, 32% consumers demand small pack. 27% consumers
demand large packs.
This data can be graphically explained with the help of the following bar graph:
45
40
35
30 small pack
25 medium pack
percentage
20 large pack
15
10
5
0
packs preferred by customers
12. Which cream u prefer to use?
The reaction of people towards various CREAM brands can be tabulated in the following manner:
Percentage 28 32 14 26
In the survey, that I conducted, it can easily be concluded that FAIR & LOVELY, the product
of HUL, holds the major market with a share of 32%. This is followed by, POND’s, another product
of HUL, which holds 28% of the market share. This is followed by, other brands (EXCEPT, POND’s,
FAIR & LOVELY & AYUR), which captures 26% of the market share. This is followed by AYUR, the
brand of AYUR ACADEMY OF NATURAL BEAUTY (AANB) which holds 14% of the total market share.
This data can be graphically explained with the help of the following bar graph:
demand of creams
35
30
25 ponds
20 fair & lovely
percentage ayur
15
others
10
5
0
brands
13. Which coffee u prefer to use?
The reaction of people towards various COFFEE brands can be tabulated in the following manner:
Percentage 26 32 32 10
In the survey, that the researcher conducted, it can be easily concluded that all the brands
are facing tough competition. NESTLE, the product of NESTLE S.A. & NESCAFE, another product of
NESTLE S.A., shares equal market share of 32% each. This means that they are in a very tough
competition. This is followed by BRU, the product of HUL which holds, 26% of the market share.
While the other brands hold only 10% of the market share.
This data can be graphically explained with the help of the following bar graph:
demand of coffee
35
30
25 bru
20 nestle
percenatge nescafe
15
others
10
5
0
brands
Data analysis
Demographic profile of respondents
Gender
Age
100 57
33
50
6 3 1
0
Below 18 18-25 26-35 36-50 Above 51
Percentage
Occupation
From the graph its clear that most of the impulse buying is being done by students which
compromises of 51% of total 100 respondents 23% is for the services providing people and 20 % to
the business oriented person and at last only 6% comprises of house wife’s.
Organised Retail
26%
15% 17%
8% 10% 9%
3% 2% 3% 6%
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To Sum it Up
Consumers prefer organized retail outlets for FMCG products that are bought in large quantities
and for a larger duration of time. They also perceive it as a “family outing” and are drawn
towards it due to its convenience, variety and special offers.
Unorganised Retail
To Sum it up
Consumers prefer unorganized retail outlets for items that have low shelf life and are consumed
on a daily basis (such as vegetables). Logistical convenience and a sense of personalization are
key drivers for consumers to continue shopping at unorganized retail outlets.
Further Scope
Division of FMCG sector into Consumer Durables , Non Durables and Groceries
1. However, the demand of a product is also affected by its life cycle. If the
product is in the introduction stage, then it will definitely take some time to
capture the market, because in the introduction stage, consumers are not
much aware about the product. Therefore, it’s the responsibility of the
organization to create awareness amongst the consumers.
2. They should adapt rigorous marketing strategies, in order to sustain in the
market.
3. There is immense competition in this sector. Therefore, the organizations
should try to gain competitive advantage against their competitor’s.
4. They should try to reach as many people as possible.
5. For the organizations that are not much popular amongst the consumers,
should adopt Sales Promotion, as their marketing strategies.
6. Application of 4A’s has also become an important task for all the
organizations.
(*4A= Availability, Affordability, Acceptability, Awareness)
References
2. Purba basu, research on living style of rural consumers, (2004), pg. no.
5-8.
11. http://www.naukrihub.com/india/fmcg/overview/
12. http://www.naukrihub.com/india/fmcg/
13. http://www.naukrihub.com/india/fmcg/consumer-class/
15. http://www.naukrihub.com/india/fmcg/consumer-class/socio-economic/
16. http://www.naukrihub.com/india/fmcg/consumer-class/age/
17. http://www.naukrihub.com/india/fmcg/consumer-class/geography/
Questionnaire
1. name:
2. occupation:
3. monthly salary:
a. less than 10,000
b. 10,000 – 25,000
c. 25,000 – 50,000
d. More than 50,000
4. address:
5. phone no.:
The objective of this survey is to collect tangible information about shopping in Organized and
Unorganized Retail Sector. This questionnaire is being administered to people like you who have
visited and bought products in Retail Stores and Kiryana Store. Please let us know your spontaneous
response to the questions that pertain to your shopping experience in Retail Chains. All information
provided by you shall be kept confidential and we shall only be publishing the outcomes. Please
provide us your unbiased and frank opinions.
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8. How much time do you spend on shopping on every visit in Retail Store?
9. How much time do you spend on shopping on every visit in Kiryana Store?
10. Kindly rate the below of an organized retail and unorganized retail based upon your
preference?
Price 1 2 3 4 5 1 2 3 4 5
Quality 1 2 3 4 5 1 2 3 4 5
Variety 1 2 3 4 5 1 2 3 4 5
Location 1 2 3 4 5 1 2 3 4 5
Service 1 2 3 4 5 1 2 3 4 5
Everything at one Place 1 2 3 4 5 1 2 3 4 5
Offers 1 2 3 4 5 1 2 3 4 5
Relationship 1 2 3 4 5 1 2 3 4 5
Ambience 1 2 3 4 5 1 2 3 4 5
Home Delivery 1 2 3 4 5 1 2 3 4 5
Faster 1 2 3 4 5 1 2 3 4 5
11. Which of these factors affect your impulse buying behavior at Retail Store ?
Demographics
1. Name: ______________________________________________________