A

RESEARCH PROJECT REPORT

ON
“COMPARATIVE ANALYSIS OF COMPENSATION POLICY OF FORD

AND FERRARI MOTOR.”

FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR

THE AWARD OF

MASTER OF BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF:

DR. NIDHI TIWARI
SUBMITTED BY:
VIPIN KUMAR CHATURVEDI
ROLL NO- 2100110700239
BATCH-2021-2023

UNITED INSTITUTE OF MANAGEM

UPSIDC INDUSTRIAL AREA, NAINI, Prayagraj, U.P., 211010
 CERTIFICATE BY MBA DEPARTMENT
Certificate
Research Project Report -2023
This is to certify that Mr./Ms………………………………………………….
Roll No………………………………………...……………student of MBA 4rd
Semester of our institute has prepared a Research Project Report on
title………………………………………………………………………………
…………………………………………………………………………………..
He/she has carried out the research under my supervision and has completed the
same in conformance with / partial fulfilment of the provisions of AKTU,
Lucknow.
The work is based on Secondary data and has not been submitted anywhere else
in any manner.

Signature……………………………
Name –Mr./Ms/Dr………………….
Project Guide.
Department of Business
Administration
Date………………………………..

Counter signed
Signature……………………
(Prof K.K. Malviya)
Principal
Date………………………
 ACKNOWLEDGEMENT

First and foremost, I feel to acknowledge my parents. They are the ones who have
raised me and cared for me all the way through my life.

I am really very much grateful to Honourable Principal Sir Prof. K.K. Malviya,
United institute of management for providing the facilities for the student to
make this master of business course

It gives me immense pleasure to express sincere appreciation and gratefulness to

Dr. Rohit Kumar Vishwakarma (HOD), United Institute of management
Prayagraj, for his support, valuable suggestion and for providing all possible
help in repot making.

I owe enormous intellectual debt towards Faculty Mentor DR. NIDHI TIWARI
Asst. Professor, United Institute of Management for their continuous support
& Cooperative throughout my project without which the present work would
not have been possible. Working on this project has proved to be an enlightening
experience for me.

Date…………… Vipin Kumar Chaturvedi

 PREFACE
The course of MBA requires one to undergo a research project report with the

4th Semester UNITED INSTITUTE OF MANAGEMENT PRAYAGRAJ, so

as to get knowledge and understanding the aspects of all the theories read. It

helps us to make the best use of our skills and intelligence so as to make a better

research report.

It is really the most important thing during the course of the study.
 DECLARATION

I hereby declared that this research project report on “COMPARATIVE

ANALYSIS OF COMPENSATION POLICY OF FORD AND FERRARI

MOTOR” been successfully completed towards the fulfilment of the

requirement for the academic course MASTER OF BUSINESS

ADMINSTRATION (MBA) From UNITED INSTITUTE OF

MANAGEMENT PRAYAGRAJ. This manuscript is prepared by me under the

guidance and support of Research Project Report mentor DR. NIDHI TIWARI.

DATE……………. Vipin Kumar Chaturvedi

 TABLE OF CONTENT

CHAPTER TOPIC PAGEN

O.
1 OBJECTIVE OF THE STUDY 3-4

2 REVIEW OF LITRATURE 5-17

3 OVERVIEW OF FIRM 18-52

4 RESEARCH METHODOLOGY 53-64

5 DATA ANALYSIS 65-67

&INTERPRETATION
6 FINDING 68-69

7 CONCLUSION 70-71

8 RECOMMENDATIONS 72-73

9 BIBLIOGRAPHY 74-75
CHAPTER 1

OBJECTIVE

1
 OBJECTIVE

1. To study about the role of Advertising in Buying Behavior.

2. To understand the various Advertising Strategies followed by FMCG

Companies.

3. To analyze the impact of Advertising in FMCG sectors.

2
 CHAPTER 2

REVIEW OF LITERAT

3
Modak and Sinha, 2019 In their study titled “A Study on Emerging Trends in

Advertising for Fast Moving Consumer Goods in India” concluded that

advertising is a very powerful medium if one has to control the choices of the

audiences. Advertising also holds immense power in that helps the brand

influences the minds of the others. But how advertising uses this superpower

depends solely upon the needs of the needs of the society. There is a constant

change in the way advertisements work and these emerging trends is what makes

the advertising more and more interesting for the target audiences. The audiences

are more to get attracted towards the catchy advertisements with catchy messages.

The study further talks about the recent trends that advertisements have been

bringing about in order to catch the attention of people. Trends like Augmented

reality, Emotional advertising, Digital advertising, and Cause Based advertising

are on high these days. Out of the above-mentioned trends, one trend that has

been widely used and preferred by the FMCG industry is the Emotional

advertising. Emotional advertising although is a type of advertising appeal but it

is now also being used as a new trend. The reason behind this is that audiences

tend to react more towards the advertisements that connect with their emotions.

These emotions could be the emotions of happiness, remorse, surprise and anger.

Advertisers connect these emotions with with awareness and information for the

people. According to the study, emotional advertising are more likely to influence

an audience and drive them into making an emotional decision.

4
Neha Bhagat (2017) On her research paper titled, “Emerging trend of Emotional

Appeal in Indian Television Advertising” talks about the impact that advertising

has on the consumers. According to this paper advertising is a form of marketing

communication which is used to create awareness and promote a product or a

service. It can be understood as a non-personal form of communication that is

carried out with the agenda of increasing sales and creating brand awareness in

the minds of the users. Since the purpose of advertisement is to reach out to a

large number of people for effective communication of the advertising message,

it has benefitted a lot from the technological development in the field of media.

With a variety of channels available to the advertisers, it has made their work very

easy and ultimately advertising has emerged as a powerful tool for brands to

convince the consumers and form a strong brand image. For effective

communication of the message, the advertisers make use of different types of

appeals so that they can connect to the consumers

COMMERCE (AICM), ABDUL AZEES K A Dr. C. DHANALAKSHMI

(ASSISTANT PROFESSOR )

The paper focuses on marketing of fastmoving consumer goods. Fast moving

consumer goods are generally low profit margin. Products and therefore sold in

large quantities. Therefore, it is very important to focus on how to improve brand

value for the customers as many brands are available for the same categories of

products. Another area focused in the paper is how recession affects the demand

5
for fast moving Consumer Goods and what are the reasons for these changes. In

such a situation, it becomes necessary for the producers or the companies to

increase the investments in these brands and products so that consumers are

attracted towards them. In order to support these observations Dove’s Real

Beauty Campaign has been elaborately discussed and the points which lead to the

success of this campaign have been highlighted. Unilever was able to create a

brad value for Dove by taking regular consumers in its advertisements rather than

professionals or celebrities. Consumer women became its brand Ambassadors in

place of celebrities.

Ms Rachana Kejriwal, Dr. Dipti Kumar Chakravorty.

Advertising has also become an institution of persuasion to promote such social

and economic values as safety, health, education benevolence, Liberty,

democracy, free enterprise and tolerance. Today, advertising is wide- spread all

over the world in different countries. But advertising trends vary from country to

country. The turbulent environment of the 20th century, with rapid changes in

technology, products, processes, methods cut throat competition and emergence

of new marketing challenges only indicates the significant role of advertising,

which is expected to play in the survival and growth of business units. Over a

century ago, Harper’s Weekly commented that advertisements were ―a true

mirror of life, a sort of fossil history from which the future chronicler, if all other

historical monuments were to be lost, might fully and graphically rewrite the

history of our time. Advertising is simply an economic movement with only one

6
objective behind to increase the consumer demand of the product as well as to

enhance the sales volumes. Many advertisers and agencies believe that

advertising creates ―magic in the market place (Russell & Lane, 1996).

Advertising helps in persuading a target market to purchase or to consume a

particular brand. It serves to communicate an idea to a large number of people.

Dr. V.T. Dhanaraj M.Com., M.Sc. (FCA)., M.Com (CA) Ph.D. (Journal of

Information and Computational Science)

The term FMCG (Fast Moving Consumer Goods), although to the rising living

standards and modern values of the rural consumer along with better

infrastructure facilities by way of mobile and internet communication, roads and

rail connectivity fosters higher acceptance and sales of FMCG products in the

rural areas of erode district of Tamil Nādu. The outflow of families from rural to

the urban population of erode district of Tamil Nadu has been on the rise in search

for better jobs/career, and the current trend has been that most urban people are

settling down in the rural areas for pure habitat and peaceful living. Currently,

urban India accounts for 66% of total FMCG consumption, with rural India

accounting for the remaining 34%. However, rural India accounts for more than

40% consumption in major FMCG categories such as personal care, fabric care,

and hot beverages. Among the packaged food segment, it is estimated that

processed foods, bakery, and dairy have long-term growth potential in erode

7
district of Tamandu in both rural and urban areas due to dependence on

neighbouring states. Today the Personal care products, except those in oral care

category, are seldom regarded as luxury items. Both premium and popular

segments in the FMCG products are positioned catering the income class of the

rural consumers as well. With the increase in rural income and improvements in

infrastructure-roads & bridges network product the penetration levels have

increased substantially.

Asmit Sengar School of Business, Galgotias University (International

Journal for Multidisciplinary Research (IJFMR))

For a company's brand of good or services, advertisements are used to build an

image and/or symbolic appeal. Ads that elicit an emotional response from viewers

are more effective when they use a variety of appeals. Marketers frequently hold

the view that a brand's use will be immediately stimulated by a good emotional

message while a negative emotional message will accomplish the same goal

indirectly. How much of a negative emotional message drives consumers to

purchase a brand is frequently debated. One of the economies with the quickest

growth rates, Nigeria has a sizable young population. With the increase in

consumption that comes with buying power parity, marketers are looking for

ways to profit from it. Several international brands have recently been battling

and campaigning to enter the Indian market. As more brands are added daily,

consumers struggle to decide what to buy. Customer loyalty is declining, making

8
it essential for brands to differentiate themselves from the competition every time

they want to draw in customers in this cutthroat market. The onus is on

advertising since they are fully aware that they can't compete as much on costs

and products as they can on consumer emotions. A consumer is someone who

uses a product's goods and services. The goal of marketing is to fulfil the

requirements and desires of the target audience. Customers are put front and

centre in organisation activities according to the current marketing approach. The

goal of marketing concepts is to attract the most consumers possible, which

launches an analysis of each target market scenario.

Ms Rachana Kejriwal, Dr. Dipti Kumar Chakravorty (IOSR Journal of

Business and Management (IOSR-JBM))

The purpose of present study has been conducted to investigate the role of

advertisement on consumer. This paper aims to explore the role of advertisement

expenses by the company which leads to increase the sale of the company and the

profit of the company which in turn increases the overall growth of the company.

This study is done to see the relevance of research and development expenses,

advertisement and promotion expenses on the sales and growth of the Company.

Annual reports of the Company have been analysed to evaluate the impact of

advertisement expenses. The results exposed that advertisement attracts towards

the preference and choices to influence the consumer buying behaviour and

9
ultimately leads the sales of the company to grow. Advertisement expenses

influences the consumers and increases the sales of the company.

Dr. C. DHANALAKSHMI ASSISTANT PROFESSOR

COMMERCE (AICM), SREE KRISHNA ARTS AND SCIENCE

COLLEGE, COIMBATHORE

The paper focuses on marketing of fastmoving consumer goods. Fast moving

consumer goods are generally low profit margin. Products and therefore sold in

large quantities. Therefore, it is very important to focus on how to improve brand

value for the customers as many brands are available for the same categories of

products. Another area focused in the paper is how recession affects the demand

for fast moving Consumer Goods and what are the

reasons for these changes. In such a situation, it becomes necessary for the

producers or the companies to increase the investments in these brands and

products so that consumers are attracted towards them. In order to support these

observations Dove’s Real Beauty Campaign has been elaborately discussed and

the points which lead to the success of this campaign have been highlighted.

Unilever was able to create a brand value for Dove by taking regular consumers

in its advertisements rather than professionals or celebrities. Consumer women

became its brand Ambassadors in place of celebrities.

Savita Trivedi1, Jyothi K. 2

10
Industry Analysis and Changing Trends of FMCG Sector in India With

Reference To Selected Major FMCG Companies. In present scenario Fast

Moving Consumer Goods (FMCG) sector is the fourth largest sector in the Indian

economy and a major contributor to the country’s GDP (Gross Domestic

Product). The semi-urban and rural share to the sector is estimated to grow by the

end of 2020 and early 2021. The FMCG market is segmented into 4 major

categoriesFood and Beverages, Personal Care, Household care and Other

Products. Among all the segments Foods and Beverages category dominates the

industry followed by Personal Care, Household Care and Other Products. The

growth in the Foods and Beverages market is aided by change in tastes and

preferences, demand for innovative products, easy adaptability to the new

products and interest to try out new brands, of the upward middle- class section

of the urban area. Moreover, organized retail sector, new product launches of the

FMCG companies, increase in the demand for branded products or the demand

for the trusted brands etc have a positive influence on the growth of the FMCG

sector. Income and spending behaviour provides a way for the sector to grow at

9-10% in 2020. With the growing population in India, consumerism on rise,

where the FMCG companies have the opportunity to expand their business and

the industry can likely grow further on a much significant pace.

Ms Rachana Kejriwal, Dr. Dipti Kumar Chakravorty (IOSR Journal of

Business and Management (IOSR-JBM)

11
The purpose of present study has been conducted to investigate the role of

advertisement on consumer. This paper aims to explore the role of advertisement

expenses by the company which leads to increase the sale of the company and the

profit of the company which in turn increases the overall growth of the company.

This study is done to see the relevance of research and development expenses,

advertisement and promotion expenses on the sales and growth of the Company.

Annual reports of the Company have been analysed to evaluate the impact of

advertisement expenses. The results exposed that advertisement attracts towards

the preference and choices to influence the consumer buying behaviour and

ultimately leads the sales of the company to grow. Advertisement expenses

influences the consumers and increases the sales of the company.

Prof. Dr. Abdul Ghafoor Awan, Muhammad Ismail, Farisa Ghazal

Journal of Marketing and Consumer Research ISSN 2422-8451 An

International Peer-reviewed Journal Vol.19, 2016

Advertisement is generally use for creating awareness and promoting products. It

is controversial to measure how much advertisement attract the customers. The

objective of this paper is to find out how much advertisement bring effect on the

consumer’s buying behavior with reference to FMCGs. By using 5 point Likert

scale with cross sectional data, 250 questionnaires were distributed in five cities

of southern Punjab (Bahawalpur, Layyah, Tounsa, Bhakhar and Multan), as a

12
sample, and received 231 complete questionnaires from respondents after field

survey. With the help of Kirkpatrick model that contain one dependent and five

independent variables, a conceptual framework was developed. Data was

analyzed by using different statistical techniques such as descriptive statistic,

Correlation analysis, and regression analysis. Results of our study are robust

because the evidence shows that advertisements have significant impact on

consumers’ buying behavior and their choices.

Shefali Chhibber Bakshi

Journal of Public Relations and Advertising Vol. I, Issue 1, Jan- June. 2022

Natural products and their ingredients have been a part of our lives for centuries

before getting over powered by the use of various chemicals in our day-to-day

products. But the trend has come back with consumer preferring to buy products

that are made up of natural ingredients. This has been happening since more than

a decade now which has forced brands to enter the segment of natural products.

An important reason of shift towards natural products is because of the influence

created by advertisements. This paper tries to analyse the content of

advertisements in order to find out the elements that attract the attention of

consumers towards the natural products. The study is a descriptive study that

makes use of secondary data and the tool used is content analysis where

advertisements of four major conglomerates; Dabur, Himalaya, Patanjali,

Uniliver Ayush of the duration 2018-2020.

13
Kunta Somireddy (International Journal Peer Reviewed Journal Refereed

Journal Indexed Journal UGC Approved Journal Impact Factor MJIF: 4.25

E-ISSN: 2454-6615)

The present research paper study was conducted to find out the impact of

advertisements on consumers behaviour towards FMCG products in Hyderabad

city. A questionnaire was prepared to assess the impact of advertisements on

FMCG with selected products, with the sample of 174, the sample data has been

collected from selected area in the state capital of Telangana. Data analysis was

tested via descriptive statistics, percentages, ANOVA, correlation and multiple

regression analysis by using SPSS 20.0 Version. The result of ANOVAs the study

showed that advertisements, media vehicles, and advertisements appeals have

positive effect on consumer purchase of selected products of Fast-moving

consumer goods, Correlations results showed that there is a strong correlation

between media ads appeals and media strategy, occupation and media strategy,

multiple regression results indicated that media ads, media vehicles and media

strategy having significant impact on consumer purchase decisions. Correlations

results showed that there is a strong correlation between media vehicles and ads

appeals. Multiple regression results indicated that advisements, media vehicles

and ads appeal having significant impact on consumer purchase decisions.

Dr.Mohammas Naquibur rahman, 2012 -The impact of Advertisement: An

Empirical Study of FMCG Products. The paper aims to search the role of

14
Advertisement towards buying behaviour. These results showed that

advertisement has impact towards the preference and choices to influence the

consumer behaviour. Result also showed that Consumer trust advertisements

more as compare to other modes. Consumers were also impacted by the

advertisement on the Cinema screen. The ad must be creative enough to influence

the positive impact on the consumers. Advertisement appeal and its effectiveness

are both correlated to each other. It was also found out that people form attitudes

towards objects on the basis of their beliefs, perception and knowledge about

these objects. The findings explained consumers buys a particular brand because

it satisfies their needs.

Aneeza Bashir, Najma Iqbal Malik,2010

Every day, we come across to an advertisement in our life. People believe

advertisement as imaginary image of nature. It is evident from definitions of

advertisement that advertisement changes as time changes. However,

Advertisement always creates a strong impact on our life. Advertisement is a

strong pillar to increase sales. It is the primary objective of the advertiser is to

display his products in the advertisement in an effective way so that it can gain

benefits in the long run. Advertisement can run through different vehicles. Once

advertisement strategy and objective are decided then appropriate mode of media

is taken into the consideration to deliver message, such as outdoor advertisement,

online advertisement, offline advertisement, magazines etc. It can be seen that all

15
the effort to make an effective advertisement is to meet the customer perceptive

in a positive manner. Human community develops a system which provides

distribution of goods and services. In today’s advanced societies as the

development goes on this system becomes very complex because of wide range

of available goods. It is required to study person’s life experience to understand

the consumption of economic goods which involved Human. From this point of

view, consumer behaviour appears to be subsets of human behaviour for the

factors, which affect individuals in their daily lives, also influence their purchase

activities. Though environment is also important factor to take into consideration

but trustworthy is always an advertisement for a brand. So Advertiser must time

to time design the ad in a manner that it can grab the attention of the consumer

through a Quality ad.

Anmol talankar, Arpit Shukla Ashish Sharma2012, Consumer Market

provides success to those brands which can fulfil customers’ needs and want on

a right time. Rich Quality and policies is considered to be success of

advertisement. One survey revealed that the advertisements of detergent surf

excel significantly impact the buying decision. Presentation of idea and language

is the key element for the success of message 14 regarding the product. Therefore,

the campaign should not only retain the market but also give it a highest place in

the mind of the customers. Surf Excel is the example that celebrity endorsement

is necessary for not just attracting the consumer but also to know the psychology

16
of consumers, Surf excel that’s is mapped for using interpretive structural

modelling to analysed and identified as Advertising drivers such as consumer

behaviour models, advertising theories, advertising creativity theories.

Advertising is about placing the right message at the right time in the mind of the

customers; it creates an urge in the customer to buy the product. Advertisers in

India follow this but traditional method of advertisement is still alive. Social

media has changed the one-way communication into a two-way communication

which allows consumer to share their feedback and response. It can be concluded

through relevant literature that no single theory can do consumer advertisement

interaction, in most of the cases, alternative formulation can be the better fit.

Geeta Sonkusare,2017

Television is considered as an effective way of advertisement. With the ability of

both audio and video presentation, it has strong impact on the target customers,

which makes the product promotion convenient. Women consume FMCG

products after getting information about the product through television medium.

This study is to test the Impact of television advertisement of FMCG products

and the factor affecting advertisement strategies on buying behaviour of the

consumer and to The Primary and Secondary data has been collected for this

purpose. Through the results it has been concluded that Television has significant

impact on the women. Usually while purchasing any product customer collect the

proper information and advertisement is consider as the most adopted medium to

17
get the information about FMCG products. 15 There are various attributes which

can affect the buying decision of woman customers and it has been seen that both

social and personal factor are more influenced. The study was conducted in

Chandrapur city where, maximum women consumers influenced by word-of-

mouth. It has also been observed that woman consumers prefer advertisement as

a marketing strategy for FMCG products. In this way Television advertising plays

a significant role in buying behaviour of women consumers.

Pallavi G, Shashidhar,2011. Consumer Behaviour towards various products is

complex. The study conducted to observe the buying behaviour for the products

of two companies - HUL and P& G.HUL products includes daily use products of

the consumer like soaps, cosmetic products for women , detergents, tea etc,

whereas P& G deals in hygienic and health care products. It is an analysis of two

FMCG companies. As bith are consider the top FMCG companies and both spend

ample amount of money for the advertisement. Being a Consumer Goods

companies the top priority is the availability of product daily to the consumer

without any delay. Brand Awareness is also the focusing factor. The findings say

that at some segment both the company’s products have the significant choices in

the mind of the customer related to a particular product.

Shalini Srivastava, 2011

FMCG sector in India is considered as fourth largest sector in India which has

become the part of consumer’s day to day life. The Sector varies in different form

18
of areas as urban, semi urban, rural; slum because people have different mind-set

and requirements for their lifestyle. If one person considering a product as

essential that doesn’t mean it is also considered as essential to buy for the person

living in different demographical area. The research is to study the factors that

affect the consumers buying behaviour in unauthorized- colonies in urban areas.

It was found that people prefer brands as product preference in comparison of

generic products, it was 16 also found that time reliability, Product features,

promotional tools and economic and social factors have significant impact on the

Consumer buying behaviour. Consumer Behaviour not only includes buying the

product but also the process of consumption on the vast. In the entire process

consumers can be affected by various factors such as feelings, income, lifestyle,

culture etc.

Dr. K.Alex , M. Mary Suthanthira Malar ISSN- 2350-0530(O), ISSN- 2394-

3629(P) DOI: 10.5281/zenodo.844786 [Alex et. al., Vol.5 (Iss.7): July, 2017]

Advertising developed mainly in twentieth century. The development of

technology and research brought sophistication in advertising in recent decades.

It has developed significantly after Second World War. After 1950, television

became the important medium of advertising. Advertising business changed with

the business environment. It is rarely a stable business. Fast Moving Consumer

Goods (FMCG) are more in demand and frequently purchased by customers.

These goods include all Consumable goods (other than pulses and grains) and

19
consumers buy at regular intervals in small quantities. SWOT Analysis applied to

measures the Advertising Strategy of FMCG Sector. Both Primary and Secondary

sources of data were utilized for the study. Primary data was collected by means

of administering a questionnaire to the customers and advertising manager.

Secondary data had been collected from various publications, periodicals,

journals, etc. Convenience sampling technique was used for the survey.

Questionnaire filled by the selected respondents. The sample size selected is 200.

The study concluded that the companies are used the media as a mode of

promotion for the FMCG products and tough competition is being faced by the

company in market, media planners should be more careful in giving message to

the customers

20
 CHAPTER – 3

DESCRIPTION OF TOPIC

21
 INTRODUCTION

“ROLE OF ADVERTISING IN CONSUMER BUYING BEHAVIOUR OF

FMCG SECTOR”

Fast-moving consumer goods

The fast-moving consumer goods (FMCG) industry or consumer packaged goods

(CPG) industry is mainly responsible for producing, distributing and

marketing fast-moving consumer goods. The FMCG industry is the fourth largest

sector in the Indian economy. Household and personal care products accounts for

50% of the sales in the industry, healthcare accounts for 31-32% and food and

beverage accounts for the remaining 18-19%.The Fast-moving consumer goods

(FMCG) sector is the 4th largest sector of the Indian economy. It is characterised

by high turnover consumer packaged goods, i.e. goods that are produced,

distributed, marketed and consumed within a short span of time. FMCG products

that dominate the market today are detergents, toiletries, tooth cleaning products,

cosmetics, etc. The FMCG sector in India also

includes pharmaceuticals, consumer electronics, soft drinks packaged food

products and chocolates. Since the sector encompasses a diverse range of

products, different companies dominate the market in various sub-sectors.

However, some of the top FMCG companies in India are- Dabur (60%), Colgate

(54.7%), Hindustan Unilever (54%).

22
RURAL AND URBAN TRENDS

The FMCG industry in India is divided into the demographics of rural and urban

India. The urban market contributes 60% of the consumption revenue of the

FMCG market in India. In 2017, this sector recorded a market size of $ 29.4 bn.

While urban areas have spearheaded the growth of the FMCG industry in India,

semi-urban and rural segments are growing at a rate that cannot be ignored. Semi-

urban and rural segments contribute over 40% of the overall revenues of the

FMCG sector in India. FMCG companies in India have witnessed higher growth

in rural areas compared to urban ones. And with 12.2% of the world’s population

23
living in the villages of India, the Indian rural FMCG market cannot be ignored

by investors. Dabur, one of the top FMCG companies in India, generates over

45% of its domestic revenue through the sale of packaged consumer goods in

rural India. Hindustan Unilever, another name that has consistently dominated

the list of top FMCG companies in India, earns over 35% of its revenue from

rural areas. Rural India accounts for more than 40% of consumption in major

FMCG categories such as personal care, fabric care, and hot beverages. In urban

areas, home and personal care category- including skin care, household care, and

feminine hygiene- will continue to grow at attractive rates. Within the foods

segment, it is estimated that processed foods, bakery, and dairy are long-term

growth categories in both rural and urban areas.

DEMOGRAPHIC SUPPORT

An FMCG industry overview indicated that India’s demographic profile plays a

major role in the growth of this sector. Not only is India’s demographic young,

but this segment is also characterised by increased urbanisation and higher

expenditure. Urban development initiatives by the government, as well as the

increasing middle class of India, has led to an increase in the number of attractive

markets in the country. Ernst & Young’s research on the cities of India highlights

the emergence of 30 ‘new wave’ cities such as Jaipur and Surat. Consumption in

these cities is growing at a faster rate than that of many of India’s metros. India’s

young population is also characterised by a high degree of technological

24
awareness. Growing penetration of smartphones and better internet connectivity

in India has led to a burgeoning E-Commerce sector, which has, in turn, helped

formalise large sections of the unorganised retail sector. The E-Commerce

segment is projected to contribute 11% of overall Indian FMCG companies’ sales

in 2030. The online FMCG market is projected to reach $ 45 bn in 2020. This has

been a major catalyst in the development of the FMCG sector in rural India.

FMCG MARKET IN INDIA

The FMCG sector is one of the largest sectors of the Indian economy. According

to an FMCG industry overview, revenues of the FMCG sector reached $ 52.75

bn in FY18, and are estimated to reach $ 103.7 bn in 2020. As consumption in

India grows at an unprecedented rate, the FMCG industry remains a key sector

for investors. Acknowledging these trends in the FMCG industry profile, the

Government of India has undertaken various initiatives to promote the sector. For

instance, 100% FDI is permitted in SBRT and cash-and-carry models of retail,

and the minimum capitalisation for foreign FMCG companies to invest in India is

$ 100 mn. Even the implementation of GST in India has had far-reaching

consequences for the sector, as the highest selling FMCG products such as soap,

toothpaste and hair oil now come under the 18% tax bracket (as opposed to the

previous 24%)

INVESTMENTS IN FMCG INDUSTRY IN INDIA

25
Favourable demand drivers such as rising income levels and growing

urbanisation, among others, have recently encouraged major and diverse

investments in the FMCG sector. While top FMCG companies are expanding

their capacity to feed the growing domestic demand, homegrown brands have

ventured into international markets. Some of these include:

1. Patanjali- Their success has encouraged the brand to look at the

international stage, with plans to set up a 100% export-oriented

manufacturing unit in Milan SEZ, Nagpur

2. RP-Sanjiv Goenka Group- They have created a venture capital fund of $

14.74 mn to invest in FMCG startups. This move was made taking into

account the capital appreciation in the FMCG sector

We all see advertisement while watching our favourite serial, news, movie any

sports or playing any game on smartphone or watching any video online. These

are quite disturbing in our entertainment, either we mute the channel or we change

it to any other channel and start doing any other work but have you noticed why

do we see advertisement? What are the reasons behind these advertisements?

Advertising actually is the important pillar of any business. Almost every

business is engaged in promoting their products, services so that the end results

to be generating profit and the product visibility to all. Advertisement is gaining

importance day by day. Whenever a product launches in the market, the risks and

expenses occurred in promoting product through personal selling, free products,

discount are too high, also it is not possible to reach a wide reach. Here, comes

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the role of advertising agencies. With growing capability of production and output

in India, there is a growing demand for the users, Advertisement helps in bridging

this gap by grabbing the attention of the customer through its feature of audio and

video presentation about the product. Consumers have lots of preferences and

choices available to them through advertisement, as consumer can see the

alternative or the competitor’s product through advertisement. Advertisement

helps in mass marketing also. Advertising helps in mass marketing of the product.

It also increases the role of supply chain to make the product available in the

every corner of the country. Mass marketing is possible through mass level of

communication only that is why advertisement is becoming a main pillar for the

marketer. As this help the consumer to make buying decision for the product. At

some point of time while purchasing a product we are influenced by

advertisement once, by judging about the product features or comparing it with

others. Advertisement is actually boosting the economy of the products by

increasing the consumer demand of the products which ultimately increase sales

volume. It is believed that advertising is something that creates “magic in the

market place.” 3 Advertisement has changed its way over a period of time but

still advertisement is consider as the strong pillar of marketing which impact the

consumer’s behaviour and attitude towards the product which is not possible

without the proper advertisement. Therefore advertisement is an activity of

enhancing the sales by influencing the consumer behaviour towards the product

they want to buy, through advertisement they can take decision easily about the

27
product and it is also less time consuming for the consumer to make choices.

Once the product is as per their expectation, there are huge chances of repeated

purchase and an advantage for marketer to gain the customer’s trust. Nowadays

digital marketing is also playing an important role for the marketer in influencing

the behaviour of customer but television is still consider as the most popular

medium because of its ability in both audio and video representation and it is

present in every family nowadays. It is not possible to reach every segment of the

market with one advertisement as consumers have different preferences and

different nature. There are advertisements which are designed for a particular

segment of customers. Advertising industry is so large that all type of

advertisement can be covered through different media. An effective

advertisement consist of creativity in the message, originality and a meaningful

advertise and must be well carried out. Media is defined as the vehicle used as a

medium to deliver message to the consumer. Marketer uses different type of

media as per the requirement of the product and analysing the targeted consumer

preferences on the different modes of media. Modes of media are T.V, Newspaper,

Radio, billboards etc. An advertising agency should clearly define its’ objective

and message of the advertisement while making an advertisement making

advertisement budget, choosing media and size of an advertisement. Then the

next step is to measure the effectiveness of advertisement on the basis of pre and

post techniques such as storey board test, field test, recognition test, recall test

etc.

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FMCG Sector of India

Fast Moving Consumer Goods industry deals with production of goods which are

basically for the use of consumer market. This industry doesn’t deal in industrial

goods. It is also known as consumer-packaged goods industry. Primarily deals

with the production, distribution and marketing of consumer-packaged goods.

The FMCG sector is considered as the 4th largest sector in the context of Indian

economy. FMCG sector has also seen a significance growth in the rural

consumption. Lot of initiatives are also taken by the government to promote the

industry. FMCG Industry Economy The industry consist of large variety of

consumable goods through which there is large portion of money is supplied in

this sector. Because of which competition among the competitors is also

increasing. So, Investment in this sector is also increasing rapidly in case of India

which helps in improving the overall economy of the country. FMCG Products

Some FMCG products consist of those which are consumed as per daily

requirement in the life these are also consider as non-durable goods such

categories of the products are Dairy products like milk, Bread, Butter , Medical

Drugs, Household products, cosmetic products like hair care shampoos, ladies

makeup etc. and stationery products these are some categories come under the

FMCG because these products do not have long life they as compare to the

durable products which have generally life of more than 2 years.

ADVERTISEMENT IN FMCG SECTOR

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Companies are spending huge amount on the advertisement of the products only

because the market is homogeneous as lot of competitors are available in the

market and customer has wide range of choices. Generally, consumers prefer 5

those products which are highly recognised by them or recommended by others

and advertisement is the only medium through which it can reach large number

of people. If the product is offering the better quality than the competitor than

through advertisement it can be conveyed to the customer, otherwise it is not

possible to switch the customer from the competitor’s product to the new product.

Distribution of advertising expenditure in the FMCG industry across India in

2019 From this figure, it can be seen that advertising expenditure in FMCG

industry is accounted 63 percent, in 2019 across India, Digital medium with 16

percent stands on 2nd in terms of advertisement expenditure. It can be seen that

the expenditure on the radio is considered to be the lowest share in the

expenditure. This is simply because nowadays with the availability of

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smartphones and tabs people prefer more of the enhanced experience of

advertisement. This depicts that the market is more towards the customer centric

approach. Analysing the market makes it easy for the market to understand which

media is most popular for the advertisement because if the correct mode of

advertisement is not chosen then the efforts made on the advertisement would be

of no use.

Leading FMCG companies in India

Some leading FMCG companies in India which are selling the consumer goods

in the market are Hindustan Unilever Limited (HUL), Nestle, ITC, BRITANIA,

PARLE AGRO, DABUR, AMUL, MARICO, P&G, and GODEREJ. They have

generally large market share as compared to other companies in the market.

The food categories are gaining advantage by the launches of different products

from the most popular FMCG companies like HUL, GODEREJ, NESTLE, etc.

The category has also seen innovations by HUL and Godrej Pillsbury. This

31
particular category has much more advantage as compare to other FMCG

categories.

Amul

With more than 80 percent market share, Amul is well known companies in terms

of the products like Butter, milk, cheese etc. Amul also spend on advertisement

on a large platform, usually you can counter the advertisement on Television and

Radio.

Britannia

Britannia is also ranked among the top FMCG companies , it’s well known for 7

making biscuits . At present Britannia has different product line in Rusks, Cakes,

different types of biscuits and dairy products. It is India’s most popular and oldest

company in this segment.

For the Household categories,

Godrej and Reckitt

Under household category Godrej and Reckitt are the two top companies having

larger market share as compared to other competitors. The company has its

product in the insecticides as Good Knight and Morten of Reckitt’s has total

market worth of Rs. 4400 crore and it is projected to be Rs. 5200 buy 2020. For

the products like shampoos and soaps companies like HUL, Procter and Gamble,

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Himalayas are holding market by their products like sunsilk, clinic plus, Pantene

, etc

Dabur

Dabur is among the top five FMCG companies in the India with total revenue of

88.29 billion in 2018-19. Dabur is specialised in Ayurvedic products like

chayawanprash, some health care, hair care, oral care products etc

Cadbury

India Cadbury India is one of the most popular chocolate and toffee brands in

India with its most popular Dairy Milk. Cadbury has total market share of 70

percent. Some other products include 5 star, Eclairs, Gems , Bornvita etc. The

company spends big share in advertisement during the festival season such as

Diwali , Holi with its product as Cadbury Celebrations. To keep them a market

leader they also launches some new product like sik, oreo chocolate etc. by

targeting all types of consumers.

Hindustan Unilever Limited

Hindustan Unilever Limited is one of the largest FMCG company in the india

with its different categories of products like personal, food , Health care and

others area . Every two out of three Indian is using their product available in the

market. In a report of 2016, HUL top 6 brands have crossed over 32000 crores

which is half of the total HUL sales. They are also one the largest exporters in the

33
country by the name Golden Super Star Trading house by Indian Government.

There brands like Surf Excel, Rin, Wheel , Brooke Bond, kissan, R.O water ,

toothpaste as Pepsodent, CloseUP and shampoos such as Sunsilk, Dove, Clinic

Plus and cosmetic products like fair and lovely etc are products offered by HUL

in different categories across the country with excellent supply chain management

by reaching in the every corner of the country. It uses different strategies by

targeting customers through advertising. In the report HUL has spent over 3450

crore in 2 quarters in 2018. They have wide presence in the different parts of the

country. Covering over large number of retail outlets in both rural and urban

cities.

Procter & Gamble Co. (P&G Procter & Gamble Co.

P&G is an international company manufacturing large variety of Durable and

Non-Durable Consumer goods. P&G subsidies, P&G Hygiene and Health and

P&G Home care Ltd. are the fastest FMCG Companies in India. Among the

categories of different segments - personal care, health care, household products,

fabric care, baby care etc. , P&G is covering different brands as head and shoulder

shampoo. Olay beauty cream, Gillette shaving cream which is the most popular

brand among the men, toothpaste as Oral B, Sanitary Napkins in female hygiene-

Whisper , medication care as Vicks, Clearasil, Fabric care as Ariel, Tide and air

freshener products Ambi pur for car and home, etc. P&G from this wide variety

of products are covering all the household items which are consumed by the

34
consumers in day to day activities. P&G spends a large 9 amount of money on

advertisement to make consumer aware about their products by targeting different

customers. So, these are some popular FMCG companies in India which are

manufacturing and delivering products among the consumer in market.

All these companies spend a large portion of money in making different strategies

to make them the leader in the market of cut-throat competition. For a company

to survive in the market, innovation in the products and services and easy reach

of the products to the customers is the key challenge. Selling the product is not

the only goal of these companies nowadays; they are also focusing on the after

sales services to make the customer satisfy because consumers are much aware

of their rights against any cheating by the seller. And companies also understand

the same and offer the best service as possible to retain the customer by giving

them monetary benefits or new product in exchange of other . In a report, Some

FMCGs companies nowadays is facing slow consumer demand in the last 15

years, which is forcing the companies to cut down their advertisement budget and

shifting their focus on consumer promotions and focusing on the wholesaler and

distributers to push sales. But still the most effective way of increasing sale is

consider as advertisement. HUL and Marico Ltd. have seen profit in their sales

even after spending huge amount on advertisement.

Different strategies by FMCG for marketing brands

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All the brands in the world are backed up by a story. We are aware of some stories

of the stories. Every brand has an importance, standing, vital signs color, attitude,

and misc attributes. Marketing & Advertising is also an integral part for brand

promotion as we say in local lingo " Jo Dikhta hai Woh bikta hai" .

Brands are made competitive via following strategies:

1. Multibrand Strategy

´Marketing of two or more similar and competing products by the same firm. A

company often nurtures a number of brands in the same category. There are

various motives for doing this. ´The main rationale behind this strategy is to

capture as much of the market share as possible by trying to cover as many

segments as possible, as it is not possible for one brand to cater to the entire

market. This also enables the company to lock up more distributer shelf space.

2. Product Flanking

Refers to the introduction of different combinations of products at different

prices, to cover as many market segments as possible. It is basically offering the

same product in different sizes and price combinations to tap diverse market

opportunities.

The idea behind this concept is to flank the core product by offering different

variations of size and price so that the consumer finds some brand to choose from.

36
Shampoos in small sachets and premium detergents (Tide, Aeriel etc.) in small

pouches are examples of this strategy

3. Brand Extension

Companies make brand extensions in the hope that the extensions will be able to

ride on the equity of successful brands, and that the new brand will stand in its

own right in the course of time.A well respected brand name gives the new

product instant recognition and easier acceptance.

It enables the company to enter new product categories more easily. For

eg: Lifebuoy Plus & Lifebuoy liquid.

4. Building Product Line

Some companies add related new product lines to give the consumer all the

products he/she would like to buy under one umbrella. For e.g: Unilever has

added product lines one after another starting from Lifebuoy, Lux, & Dove.

5. New Product Development

A company can add new products through the acquisition of other companies or

by devoting one’s own efforts on new product development.

With the help of new products a company can enter a growing market for the first

time, and supplement its existing product lines.

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6.Innovations in Core Products

The life of a product is short in FMCG market

Marketers continually try to introduce new brands to offer something new and

meet the changing requirements of customer.

It is prudent for a marketer to innovate from time to time both by technological

expertise as well as from the consumer’s or dealer’s feedback.

7. Extending the product life cycle

Economic conditions change, competitors launch new assaults, and the products

encounters new types of buyers and new requirements are situations in which a

FMCG company try to extend the PLC.

In the mature stage of the PLC, some companies abandon their weaker products.

They prefer to concentrate their resources on their more profitable products and

quickly develop new products.

8. Expanding markets by usage

´A company usually expands the market for its brand in two ways, either to

increase the number of customers or by encouraging more consumption per

intake.

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The usage rate of the consumers can be increased in 3 ways :

1)It may try to educate or persuade customers to use the product more frequently.

2)The Company can try to induce users to consume more of the product on each

occasion.

3) The company can try to discover new product uses and convince customers to

use the product in more varied ways.

9. Wide Distribution Network

A very simple way of increasing FMCG company’s market share is by

developing a strong distribution network, preferably in terms of more locations.

An extensive distribution system can be developed over time, or the company

may acquire another company which has an extensive distribution network. Coca-

Cola and PepsiCo’s wide distribution network systems have made them market

leaders.

TOP 7 Digital Marketing Strategies Of FMCG Sector In India

With the advent of social media, expanding data networks and spread in the usage

of smartphones and the boom of eCommerce stores, the traditional marketing

method for FMCGs are under attack. Long gone are the days where a FMCG

would have only one advertisement they used for a product everywhere, with

39
digital marketing, each promotional push can be customised to meet the

consumers’ needs.

Let us now discuss the top 7 trends in digital marketing strategies of FMCGs in

India.

1. Customer-Centric Content Marketing :

Traditionally, FMCGs marketed their products by only talking about its

attributes. TVs, newspapers and radios all had the same message about what the

product was and does. Such marketing was not very effective because it was not

attractive and did not appeal to people individually. With the arrival of digital

marketing, the strategies of FMCGs in India have changed drastically.

Through digital marketing, the customers get the content which revolves around

them. They can engage and talk about the brand, show other people what they use

and help the brand reach recognition for their efforts. FMCGs have capitalised on

this trend heavily. With user-centric content marketing, a customer receives more

personalised branding and more relevant advertisement is shown to them.

2. Creating presence with social media

According to a survey, an average adult spends about 2 hours and 40 minutes on

their social media applications daily in 2020. This is a massive amount of time

where customers of a brand are highly engaged and can be easily reached. For an

organisation, it is now a must to have their presence in all the platforms relevant

to them.

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Every social media platform is different and effective for different kinds of

audience. While Facebook appeals well to age groups, Instagram is highly

effective for marketing to the youth. LinkedIn is effective for increasing

awareness about the work of an organisation, especially with professionals from

the age of 25 – 45. YouTube is a great platform to put on the visual and long-

form content, where Pinterest is great for running informative campaigns and

pictorial content.

An organisation needs to identify the best social media platforms for their purpose

and maximize their efforts on them.

3 . User-generated content

Traditional methods only allowed for one way communication, that is, the

company promoting its products to the users. Now with social media, the ability

to communicate between companies and users has changed things. Smart

organisations let their users do their promotions for them through applying UGC

or User Generated Content strategy.

In UGC, a user is asked to promote the product or service through putting a story

or post, tagging them and sharing hashtags. Such content acts as a great piece of

digital word of mouth and is considered to be one of the most authentic and

trusted sources of digital marketing. It engages the user to talk about the brand at

the same time increasing the brand’s perceived authenticity by the people who

see their friends’ posts and stories.

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4. Increasing appeal through Influencer Marketing:

People like to believe other people they look up to, and that precisely what

influencer marketing is based on. An influencer is someone with some form of

skills they are famous for. They command a public presence and are trusted for

their word. Through influencer marketing, a company asks them to produce

content using the brand’s product or service, and drive conversation amongst their

fans regarding that. An influencer can add a lot of legitimacy to a brand and its

product, this is especially true for FMCG brands.

5. Automated Email Marketing

As people get used to more and more email marketing, they get bored and

unaffected by them. The newest innovation in marketing is automated email

marketing. While earlier mass mailers for sending general messages and offers

were used, now we use action and preference generated email journeys to give

specialised experience for all. This email marketing format is also known as Drip

Marketing.

For example: When a customer first signs up, one email will be sent regarding

that. Now if the customer after signing up goes and puts an item in their online

cart, but does not check out, another email will be sent to remind you to complete

your purchase and so on.

Automated emails are a great way to influence a customer. By making specialised

action triggered emails, you can communicate to your customer more

42
appropriately and be better able to guide them to make a purchase. Such emails

also assist you in retargeting consumers who have already purchased from you.

6 . Hosting in-house eCommerce Store

This might sound absurd, but many FMCGs do not have their eCommerce stores

on their website. They rely on digital marketing to increase their offline sales but

do not use the easy way of directly selling to the customer online. Now is a great

time for the FMCGs to start direct selling through their websites as increasing

numbers of consumers are beginning to shop online. FMCGs should also have

their portals on websites like Amazon and Facebook to capture their customers

digitally, everywhere.

7. Online Reputation Management

When customers shop online, one of the key decision-making factors before

making a purchase is online reviews. All the eCommerce stores have a review

section where anyone who has bought the product can put a review. These

reviews help in increasing the authenticity of the product at the same time develop

trust with the customer that the product quality and usage is satisfying.

Customers who write reviews are also some of the most engaged users of a brand,

hence it is very important to talk to them. This process of engaging the users is

called ORM. An FMCG can capitalise on every positive review and smooth

overall negative reviews with a proper ORM strategy.

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Now that we have looked at the latest trends in Digital marketing strategies for

FMCGs in India, let us now discuss three separate case studies to understand

where and how these trends can be used in an FMCGs’ digital marketing strategy.

We will look at the research and then solutions proposed for each brand and learn

how to implement a business strategy using deep insights.

Advertising in FMCG Sector

Advertising is an integral aspect of any business or service. Small, or big, every

business provider aims at capturing and engaging their audience with advertising,

and marketing. A business advertises its products or services for aiming a bigger

market or for promoting their products, services, or offers. The possible objectives

of advertising are to inform, to persuade, to remind, and to reinforce.However, for

a few FMCG giants, advertising objective is not promotion, but maintaining or

creating brand value.

5 consumers oriented FMCG Television advertisements

Here, we take a look at 5 top FMCG brands and how their flagship product(s) are

advertised. We also take a look as to what these ads trigger in their target audience,

urging them to take the first step towards the purchase. These giants heavily

depend on television advertisements.

1. Cadbury Dairy Milk #SayThankyou campaign

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Cadbury’s #SayThankyou campaign aims at acknowledging the unsung heroes of

our daily lives, who work diligently without seeking any praise. This campaign

targets the emotional side of their audience, encouraging them to show gratitude

to people who assist them in their daily lives.

2. Nescafe- Karne se hee hona hai

Nescafe never fails to amaze the audience with their relatable yet hard-hitting

advertisements. A term that aptly defines their storyboards is ‘self-belief’. Adding

a new campaign to their profile, their Karne se hee hona hai is aimed at pushing

oneself even when things are not in one’s favor. In a time, where everything and

everyone has come to a standstill, Nescafe believes that nobody is going to push

you to success except yourself.

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3. Colgate- Begin again with a smile

One of the most valued brands, Colgate needs no introduction. After all, it is one

of the most essential household commodities. So, why and what does the brand

want to achieve with their Begin again with a smile campaign? For a few brands,

the objective of advertising is not to promote their products but to maintain their

brand value. And the formula for a sure shot successful campaign is tinging at

societal issues.

4. Britannia Good Day- Har khushi ko banaye khaas

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Don’t wait for special days, make days special, this motto is at the heart of

Britannia’s ‘HarKhushiKoBanayeKhaas’ campaign. The ad shows us that by

taking a small effort, you can make your or anyone’s day.

5. Maggi- Aao Maggi banaayein

Maggi’s Aao Maggi Banaayein targets the one thing which is inevitable for any

parent- their kids growing up. The least parents can do is to make them self-reliant.

And making Maggi is surely is the beginning of the self-reliant journey.

How digital marketing will revolutionise FMCG brands in 2021

Digital media is changing the landscape for marketers everywhere, especially in

the FMCG sector. Traditionally, campaigns for every FMCG product would

depend upon determining the right marketing mix of the 4 P’s (Product, Price,

Place and Promotion) that would best influence the target audience’s purchase

decisions. Today, however, consumers are making buying-decisions differently

and with this, strategies aimed at impacting this process need to evolve as well.

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Covid 19 only accelerated this trend even further with purchases via market

places, apps and direct to consumer brands has increased.

Consumers now are exposed to their phone and laptop screens more than they are

to traditional media like television, newspapers and billboards. There are also a

growing number of consumers who prefer to shop online for FMCG products

rather than visit a physical store. According to a report by Google and Bain and

Co. $11 billion, or two-thirds, of the total sales in beauty and hygiene products

will be influenced through online marketing. In today’s digital era, a strong full-

funnel digital marketing strategy is indispensable for FMCG brands

Adapting the 4 P’s for Digital Marketing

Digital marketing for FMCG companies doesn’t mean retiring the tried and

tested 4 P’s which formed the holy grail of marketing for years. Instead, it

involves tweaking the marketing mix for FMCG products to bring them into the

current era. Digital marketing trends in FMCG allow marketers to not just capture

the consumer at the final buying stage, but also to establish a relationship with

them from the start, something that was not possible before. This requires

marketers to formulate a holistic FMCG digital strategy to not just influence their

consumers, but also to personally engage with them.

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How Digital Marketing Can Benefit FMCG Brands

Incorporating a strong digital marketing strategy in the overall marketing mix

offers many clear advantages to brands.

1. It helps distinguish your brand

The FMCG sector is marked by a large variety of similar products, which offer

consumers a wide range to choose from. One of the biggest advantages of having

an effective digital marketing strategy in place is that it helps brands create a

unique brand identity. This helps consumers form a strong opinion of the brand,

which will ultimately influence their purchase decision.

2. It provides an innovative way to display your brand

In traditional marketing for FMCG, the product display was considered one of

the most important factors which influenced purchase decisions. Consumers are

visual creatures, so the more attractive your packaging, the higher the chance of

it being noticed by them. In much the same way, digital marketing for FMCG

companies can be approached as a virtual shelf display. It is even more effective

than a physical display because it helps you reach your specific target audience,

making your overall marketing strategy more cost-effective. This enables top-of-

mind awareness, which can influence purchase decisions. Like physical shelves,

digital marketing also allows you to position your products contextually. Through

tools like AdWords Smart Display, you can showcase your products while
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consumers browse through similar categories. For example, if you are a skincare

brand, you can display your ads next to beauty blogs your consumers are

browsing through.

Often, your product's own website is one of the best ways to showcase your brand

because you have complete control of a user's experience on it. Anmol, a

household name in the northern and eastern regions of India, wanted to upgrade

their website. We completely did away with the old, lifeless website and gave it

a fresh new look that was as vibrant as their products. Our UX, content and design

teams adopted an out-of-the-box approach that had a generation-wide appeal,

complete with interactive elements, engaging language and quirky designs.

3 It Allows You to Gain Consumer Insights and Increase ROI

One of the biggest advantages digital marketing has over traditional marketing

is that it helps you track every facet of your marketing efforts. FMCG brands

spend large sums on hoardings, TV commercials, print ads, radio ads and more.

However, the results of these campaigns are very difficult to measure effectively.

While speculative figures can be produced, there is no way to arrive at a definite

conclusion.

Digital marketing, on the other hand, helps you track and measure every aspect

of your campaign. With the help of analytic tools, brands can recover information

about number of impressions, clicks, conversions and more. It also lets them find

50
out exactly which ad prompted the consumer to make the purchase. Advanced

analytics can even let you gain deep consumer insights. This can help you create

campaigns and content that your target audience will actually find engaging. With

the ease of tracking digital marketing offers, FMCG brands can refine their

strategies and make it more cost-effective.

4. Mobile usage is only going to grow from here

Offline purchases might still form the bulk of FMCG sales but the future belongs

to mobile phones. Mobile phones and high speed, affordable internet have

penetrated almost every section of the Indian audience. A significant portion of

Indian consumers are shopping for FMCG products online through various apps

and this number is only going to grow. Digital marketing trends in FMCG need

to keep up with the increasing volume of customers who prefer to shop online.

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Purpose of Study

The purpose of this research is to find whether there is an impact on the consumer

behaviour by the use of advertisement in FMCG products. The FMCG sector

includes non-durable items which come for daily use in the lifestyle of the

consumers. FMCG goods are relatively cheap and market is vast. So the purpose

is to study whether there any relationship in advertisement and the buying

behaviour of consumer and its role in increase of sale, role of advertisement in

FMCG industry. Consumer purchase decision can be impacted by various factors

such as environmental, personal preference etc. Advertisement is also considered

to be the factor impacting the purchase decision.

Scope of study

The study is focused on the behaviour of consumer for buying FMCG goods,

considering Advertisement as one of the factor. The focus would be on analysing

the effective mode of advertisement, their role in increasing the sales that will

help in exploring the insights of the consumers so that marketers can concentrate

on those factors. The sample size is limited to 108 respondents and the focus is

limited to the advertisement as a factor for the imp 1act on buying behaviour.

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 CHAPTER - 4

RESEARCH METHODOLOGY

53
 RESEARCH METHODOLOGY

RESEARCH DESIGN:

In this research the focus is on the key factors that are influencing the Behaviour

of Consumers when they are making their decision to buy the product in FMCG

sector and how these factors are impacted through the advertisement. Initially, I

have focused on gaining more information about the subject through Literature

on understanding the role of advertisement in FMCG products. The main focus

while going through the literature was on going thoroughly through the similar

papers which are covering the role of fmcg and advertisement in different

attributes.

I have used DESCRIPTIVE RESEARCH DESIGN since the study is mainly

related to understand the Role of Advertising in Consumer Buying Behaviour

in FMCG Sectors.

Descriptive research design is a type of research design that aims to

systematically obtain information to describe a phenomenon, situation, or

population. More specifically, it helps answer the what, when, where, and how

questions regarding the research problem rather than the why.

SOURCES OF DATA COLLETION

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The sources of data in this study is Secondary data.

Secondary data is the data that has already been collected through primary

sources and made readily available for researchers to use for their own research.

It is a type of data that has already been collected in the past.

A researcher may have collected the data for a particular project, then made it

available to be used by another researcher. The data may also have been collected

for general use with no specific research purpose like in the case of the national

census.

Data classified as secondary for particular research may be said to be primary for

another research. This is the case when data is being reused, making it primary

data for the first research and secondary data for the second research it is being

used for.

SECONDARY SOURCE –

Books

Books are one of the most traditional ways of collecting data. Today, there are

books available for all topics you can think of. When carrying out research, all

you have to do is look for a book on the topic being researched, then select from

the available repository of books in that area. Books, when carefully chosen are

an authentic source of authentic data and can be useful in preparing a literature

review.

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Published Sources

There are a variety of published sources available for different research topics.

The authenticity of the data generated from these sources depends majorly on the

writer and publishing company. Published sources may be printed or electronic

as the case may be. They may be paid or free depending on the writer and

publishing company’s decision.

Unpublished Personal Sources

This may not be readily available and easily accessible compared to the published

sources. They only become accessible if the researcher shares with another

researcher who is not allowed to share it with a third party. For example, the

product management team of an organization may need data on customer

feedback to assess what customers think about their product and improvement

suggestions. They will need to collect the data from the customer service

department, which primarily collected the data to improve customer service.

Journal

Journals are gradually becoming more important than books these days when data

collection is concerned. This is because journals are updated regularly with new

publications on a periodic basis, therefore giving to date information. Also,

journals are usually more specific when it comes to research. For example, we

56
can have a journal on, “Secondary data collection for quantitative data” while a

book will simply be titled, “Secondary data collection”.

Newspapers

In most cases, the information passed through a newspaper is usually very

reliable. Hence, making it one of the most authentic sources of collecting

secondary data. The kind of data commonly shared in newspapers is usually more

political, economic, and educational than scientific. Therefore, newspapers may

not be the best source for scientific data collection.

Websites

The information shared on websites is mostly not regulated and as such may not

be trusted compared to other sources. However, there are some regulated websites

that only share authentic data and can be trusted by researchers. Most of these

websites are usually government websites or private organizations that are paid,

data collectors.

Blogs

Blogs are one of the most common online sources for data and may even be less

authentic than websites. These days, practically everyone owns a blog, and a lot

of people use these blogs to drive traffic to their website or make money through

paid ads. Therefore, they cannot always be trusted. For example, a blogger may

57
write good things about a product because he or she was paid to do so by the

manufacturer even though these things are not true.

Diaries

They are personal records and as such rarely used for data collection by

researchers. Also, diaries are usually personal, except for these days when people

now share public diaries containing specific events in their life.

RESEARCH TOOLS AND TECHNIQUE

The analysis of data collection is completed and presented systematically with

the use of Microsoft excel and MS word. The various tools which were used for

presentation are

1. Table

2. Pie charts

LIMITATIONS OF THE STUDY

1. The study would have been more effective if it was conducted for a longer

period to understand the FMCG Sectors.

2. It was not possible to directly interact with the laborers in the company due

to their continuous work schedule, strictly following rules and regulations

of the company, some of the records are not available.

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3. Since the source of data collection was Secondary, we cannot completely

realia on data.

59
 CHAPTER - 4

DATA INTERPRETATION AND ANALYSIS

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1. Analyse the Role of Advertisement in consumer buying while

purchasing FMCG products?

Interpretation

It can be interpreting that 95.3% of the people agree on the fact that it is

necessary 24 for the products under this category, whereas 4.7% think

that it is not necessary for the product.

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2. Analysis and Interpretation that how much Advertisement helps you

to make buying decision for FMCG products?

Interpretation

Around 63.2 % people believe that advertisement helps them to make buying

decision, whereas, 32.1 % are not clear on this question that whether it

encourage them or not and 4.7% says No about buying decision based on

Advertisement.

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3. Analysis of effective mode of Advertisement for FMCG Products, that

help in consumer buying.

Interpretation

After interpreting this graph it can be infer that more than 60 people strongly

agree that Television and Social Media has strong impact on buying behaviour,

and people have Neutral thought about the radio advertisement, few people

disagree that these modes are effective for advertisement whereas for outdoor

advertisement they do not consider as most effective.

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4. Analysis that how do advertisement plays significant role in increasing

Awareness about FMCG PRODUCTS.

Interpretation

FMCG products among processed food, Beverages, Baked goods, Cosmetics

and Office Supplies, it can be interpret that people generally agree that

advertisements play a significant role in increasing sales. Among Cosmetics

products it can be observed that significant amount of people strongly agree

that it increase the sales and for Office supplies less than 20 people believe

that it is significant. It can also be observed that for Beverages and processed

food more than 50 People agree that advertisement helps in increasing sales.

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5. Analysis and interpretation that Advertisement has a significant

Impact on FMCG sectors?

Interpretation

There are three FMCG companies through which we can interpretate that how

Advertising has impacted the FMCG sectors, as we can see that how much

these three companies are investing in there advertising more it generating the

revenue.

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6. Contemporary advertising trends in India with reference to FMCG
sector

Interpretation

As we can interpretate from the above figure that over the year the treads of

advertising have been increases tremendously. In 2012 it was 36.8, in 2013 it

was increased by 44.9 billion, till 2020 it reached up to 103.7 billion. Hence,

we can say that with passes of time the advertising has become the integral

part of FMCG industry.

66
7. Analysis and Interpretation of how digital marketing will revolutionise
FMCG brands in 2021.

Interpretation

As we can analyse that there is huge impact of digital marketing on FMCG

industry, its keep on revolving this sector in terms of influencing and

increasing the customers. And shaping there buying behaviour.

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8. Advertising is omnipresent in all sectors and industries.

And it is clearly evident with the revenue generated by the

Indian advertising sector.

Interpretation-

From the above graph it is clear that every successive years the advertising

has tremendous effect on the consumer buying behaviour. In recent year it was

1040 . One such industry that heavily utilizes the mantra of advertising

is FMCG (Fast Moving Consumer Goods). Forbes’ ‘The 2020 World’s

Most Valuable Brands’ states that only 7 out of 100 brands are from the

consumer goods sector. According to CARE Ratings, the FMCG sector

in FY20, is the biggest spender (Rs. 9,652 crores) on advertising and

sales promotion activities.

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9. Paradigm shift in FMCG advertising, and its impact on Consumer
buying behaviour.

Interpretation-

FMCG advertisement has undergone a paradigm shift, with the advent of

social media. The power of social media platforms, like Facebook,
Instagram, YouTube, and Twitter, to name a few, has opened an uncharted
territory of low-cost, high traffic advertising formula(s). FMCG brands
spend about 33% of their digital budget on video advertisement, and
rightfully so. According to Marketing Sherpa, 95% of the online adults
aged 18–34 are most likely to follow a brand via social networking.

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10. Major segment of FMCG sector that are most benefited by the
Advertising

Interpretation-

From the above graph it can be observe that the effect of advertising is on the

Food & Beverage is most, it approximately 53%. rest of the segment has less

effect of advertising as compare to food and bevera

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CHAPTER – 6

FINDINGS

71
 FINDING

1. In my research I have found that Advertising has important role in

consumer buying behavior because it influences the consumer to make a
purchase.

2. Through this research report I have observe the drastic change in way of
doing advertisement now FMCG companies are more focused on digital
advertising instead of traditional way.

3. In my study I found that among various strategies of advertising the

Television has maximum impact on consumer buying.

4. Through this research project I have found that how tremendously advent
of Social Media Advertising is increasing demand of FMCG products.

5. In my project I have found that the amount of money FMCG companies

are capable of investing , the more they are getting benefits from the
advertising.

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CHAPTER 7

CONCLUSION

73
 CONCLUSION

 FMCG Sector is expected to grow in the coming years and advertising will

play a crucial role for any company or brand.

 Advertising leaves an everlasting impression in the consumers’ mind so it

is essential that a brand chooses its method of advertising after a detailed

study of the segment they are serving.

 FMCG brands cannot only depend on one of the two advertising modes

i.e., traditional method of advertising and social media advertising. It needs

to be a balance of both.

 It is interpreted that Consumers consider that the advertisement has

significant role in increasing sales.

 it can be concluded that for FMCG product there is a significant impact of

advertising on the consumer buying behavior and increase in sales of the

companies. Also it has been scene that brand image can be developed

through effective advertisement

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 CHAPTER 8

RECOMMENDATION

75
 RECOMMENDATION

➢ It is recommended that advertisement should be creative so that it can grab

the attention of the consumer especially in FMCG industry because there

are lot of competitors are available in the market.

➢ It is recommended that the message design should not affect any

community other it could have the bad impact on the image of the company

➢ focus of the advertisement should be more during the festival season

example Diwali in which people use to exchange gift with their friends,

neighbor.

➢ Feedback from customer nowadays is consider as the primary factor for the

success of the product, so it is recommended that advertiser before

launching any new product, should consider the feedback of his target

audience.

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 CHAPTER- 9

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77
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