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Fast Fast Moving Moving Consumer Consumer Goods Goods (FMCG) (FMCG)

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Page 1: 47528385 Buying Behaviour of Fmcg Products Copy

FastFast MovingMoving

ConsumerConsumer Goods Goods (FMCG)(FMCG)

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Report On

Buying Behavior of FMCG Products

Submitted To: Submitted By:

The Authorities, Akanksha SharmaAhmedabad Campus Anil Sharma

Selin GurjarShailesh

UpadhyayHiral Gusai

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Ahmedabad Campus

Acknowledgement

We consider our proud privilege to express deep sense of

gratitude to Mr. Himanshu Vaidya for his admirable and

valuable guidance, keen interest, encouragement and

constructive suggestions during the course of the project.

We would also like to express our hearty

gratitude to our faculty guides, Prof. Jaydeep Banerjee

and Mr. Nitesh Khanna of Unitedworld, Ahmedabad for

their valuable guidance and sincere cooperation, which

helped us in completing this Singapore business trip project.

Last, but not the least, we sincerely thank all the

members of our team for their immense support and

assistance extended during the course of this project and in

making it a valuable experience.

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From:

Akanksha Sharma Anil Sharma

Selin GurjarShailesh

UpadhyeHiral Gusai

Ahmedabad Campus

Table of Content

1. Executive summary

1-1

2. Introduction

2-3

3. Overview of FMCG

3

4. FMCG in 2006

4

5. Comparison between FMCG in 2005 & 2006

4-5

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6. Sector’s outlook

5-7

7. Scope of FMCG

8

8. Growth prospects

8-11

9. Top players in FMCG sector

11

10. Secondary players

12

11. Review of literature

12-14

12. Research objectives

15

13. Research methodology

16-19

14. Analysis

19-60

15. Conclusion

61-62

16. Suggestions & recommendations

63

17. References

64-65

18. Questionnaire

66-68

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Executive Summary

In this research the researchers have put an effort to

understand the buying behavior of the consumers towards

Indian FMCG products in Singapore.

1. In this report, the researchers have first of all given a

brief review about FMCG sector as a whole.

2. Then we have given a review of the findings of some

of the researches that has already been conducted by

various researchers.

3. Then we have enumerated our research objectives.

4. Then we have given the panoramic view regarding the

topic.

5. Then we have described our research methodology i.e.,

the sample unit, sample size, sampling region,

sampling procedure that we have used in our report.

6. We have used stratified random sampling as our

sampling procedure.

7. Then we have analyzed the data which was collected

by a questionnaire.

8. Then we have concluded the findings of the survey.

9. Then finally, we have given few suggestions &

recommendations regarding the topic.

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Introduction

There was a time when the FMCG companies

ignored Singapore market, they took no any interest to

produced or sell products in Singapore markets except India.

It was the initial stage of FMCG companies in India. As per as

the time had passed, the strategy and marketing style of

FMCG companies had been changed.

The international market is the one of the best opportunity

for the FMCG sector in the India. It is wider for the FMCG. As

the income level of the international consumers increasing,

the demand of FMCG is increasing continuously abroad.

Fast moving consumer goods (FMCG) are popularly named

as consumer packaged goods. Items in this category include

all consumables (other than groceries/pulses) people buy at

regular intervals. The most common in the list are toilet

soaps, detergents, shampoos, tooth paste, shaving products,

shoe polish, packaged food stuff, household accessories,

extends to certain electronic goods. These items are meant

for daily or frequent consumption & have a high return.

A major portion of the monthly budget of each household is

reserved for FMCG products. The volume of products

circulated in the economy against FMCG products is very

high, as the number of products the consumer uses, is

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comparatively very high. Competition in FMCG sector is very

high resulting in high pressure on margins.

FMCG companies maintain intense distribution network.

Companies spend a large portion of their budget on

maintaining distribution networks. New entrants who wish to

bring their products in the national level need to invest huge

sums of money on promoting brands. Manufacturing can be

outsourced. A recent phenomenon in the sector was entry of

multinationals and cheaper imports. Also the market is more

pressurized with presence of local players in Singapore

markets.

Overview of FMCG Sector

FMCG is an acronym for Fast Moving Consumer

Goods, which refer to things that we buy from local

supermarkets on daily basis, the things that have high

turnover & are relatively cheaper.

After 4 years of dull performance in both revenues

& profits, FMCG sector has now, i.e., since 2005, gained the

momentum, principally because of the smaller companies

that have substantially improved their market shares at the

cost of larger players, & in some cases, the regional players.

If we carefully observe the FMCG index & BSE index, we

would realize that the returns on money invested in FMCG

index are much lower than the returns in benchmark index.

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The FMCG sector has under performed the benchmark BSE

sensex in 2006. Though both the indices were close to each

other till august 2006, however, in the later part of the year

the sensex surpassed the FMCG index by a reasonable

margin.

Comparison of 2006 and 2005 After two years of sinking performance of

FMCG sector, the year 2005 has witnessed the FMCG’s

demand growing. Strong growth was seen across various

segments in FY06. With the rise in disposable income and

the economy in good health, the urban consumers continued

with their shopping spree. The international demand grew at

around 11%, while both the domestic sector registered a

growth of around 8%. Packets and sachets contributed to the

highest growth in Singapore areas. Growth in FMCG

depends on two factors:

Increase in penetration and consumption in Singapore

markets

Change in aspirations and tastes of the urban

population abroad

Both these factors contributed to growth in 2006.

Besides demand, prices also increased, because of which

only the selected consumers moved up in the value chain.

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The large format retail stores in metros also stimulated

sales, even if on a very small base. Some companies

absorbed higher input prices, while others were able to pass

on the cost to the consumers.

Sector’s Outlook

FMCG is the fourth largest sector in the Indian Economy with

a total market size of Rs.60,000 crores. FMCG sector

generates 5% of total factory employment in the country and

is creating employment for three million people, especially in

small towns and rural India.

According to a CII – A T Kearney Report, the FMCG sector in

India is expected to grow at a compounded growth rate

(CAGR) of 9% to a size of Rs.1,43,000 crores by 2010 from

Rs. 93,000 crores at present.

With a growth of 52.5%, the BSE FMCG index has, during the

last 1 year outperformed the sensex, which could manage a

growth of 41% only. A well established distribution network,

intense competition between the organized & unorganized

segments, low operating costs, strong branding

characterizes the market.

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The large consumer base, particularly in Singapore market,

and the growing middle class open up huge opportunities to

FMCG companies to take the consumers to branded products

and offer new generation products.

The sector's lack-luster performance in the last few years

was due to price competition and increase in raw materials

cost. However, in the FY06, the sector has witnessed a

double-digit growth in profits and revenues. The sector has

registered an up trend in growth across categories, such as

health supplement, shampoo, toothpaste, hair oils, and

mosquito repellant, as shown in table below:

Sales Value Growth %

Categories 2004-2005 2005-2006 Apr.2006-

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Sept. 2006

Health Supplement (Chyawanprash)

-5% 0% 23%

Shampoo 10% 23% 19%

Toothpaste 5% 6% 16%

Hair Oils 9% 18% 23%

Mosquito Repellant

13% 10% 29%

Source: CII – A T Kearney Report, (2000)

Sector Financials In millions

  31-03-2006 31-03-2005 31-03-2004

Net Sales

Sales Growth

164,196

10.8%

148,241

2.0%

145,380

-

Profit after Tax

PAT Growth

19,595

16.6%

17,001

-24.2%

21,008

-

Market Capitalization

74,746 65,810 63,072

Enterprise Value

662,540 645,477 551,971

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Return on Capital Employed (ROCE)

47.1% 51.0% 45.5%

P/E Ratio 26.7% 27.1% 21.0%

Source: CII – A T Kearney Report, (2000)

Scope of the FMCG Sector

The Indian FMCG sector has a market size of US $13.1

billion. FMCG sector is expected to grow by over 60% by

2010. That will translate into an annual growth of 10% over a

period of 5 years. It has been estimated that FMCG sector

will rise from around Rs. 56,500 crores in 2005 to Rs. 92,100

crores in 2010. Hair care, household care, male grooming,

female hygiene, & the chocolates & confectionary categories

are estimated to be the fastest growing segments, says an

HSBC Report. Though the sector witnessed a slower growth

in 2002 – 04, it has been to make a fine recovery since then.

For example, Hindustan Levers Limited (HLL) has shown a

healthy growth in the last quarter. An estimated double-digit

growth over the next few years shows that the good times

are likely to continue.

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Growth Prospects

FMCG sector is also likely to benefit from growing demand in

the international market. Because of the low per capita

consumption for almost all the products in the country,

FMCG companies have immense possibilities for growth. And

if the companies are able to change the mindset of the

consumers, i.e. if they are able to take the consumers to

branded products and offer new generation products, they

would be able to generate higher growth in the near future.

It is expected that the international income will rise in 2007,

boosting purchasing power in abroad. However, international

Indian goods consumption accounts for more than 40%

consumption in major FMCG categories such as personal

care, fabric care, and hot beverages. In Singapore, home and

personal care category, including skin care, household care

and feminine hygiene, will keep growing at relatively

attractive rates. Within the foods segment, it is estimated

that processed foods, bakery, and dairy are long-term

growth categories in both domestic and Singapore.

Indian Competitiveness and Comparison with the World

Markets:

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The following factors make India a competitive player in

FMCG sector:

1. Availability of raw materials

Because of the diverse agro-climatic conditions in India,

there is a large raw material base suitable for food

processing industries. India is the largest producer of

livestock, milk, sugarcane, coconut, spices and cashew and

is the second largest producer of rice, wheat and fruits

&vegetables. India also produces caustic soda and soda ash,

which are required for the production of soaps and

detergents. The availability of these raw materials gives

India the location advantage.

2. Labor cost comparison

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Low cost labor gives India a competitive advantage. India's

labor cost is amongst the lowest in the world, after China &

Indonesia. Low labor costs give the advantage of low cost of

production. Many MNC's have established their plants in

India to outsource for domestic and export markets.

3. Presence across value chain

Indian companies have their presence across the value chain

of FMCG sector, right from the supply of raw materials to

packaged goods in the food-processing sector. This brings

India a more cost competitive advantage. For example, Amul

supplies milk as well as dairy products like cheese, butter,

etc.

Top Players in FMCG Sector

1. Hindustan lever limited (HLL)

2. ITC (Indian Tobacco Company)

3. Nestle India

4. GCMMF (AMUL)

5. Dabur India

6. Asian Paints (India)

7. Cadbury India

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8. Britannia Industries

9. Procter & Gamble Hygiene & Health Care

10. Marico Industries

Secondary Players

1. Colgate-Palmolive (India) Ltd.

2. Godrej Consumers Product Ltd.

3. Nirma Ltd.

4. Tata Tea Ltd.

5. Parle Agro

6. H. J. Heinz

Review of Literature

International market is one of the best

opportunities for the FMCG sector. In some sense we can say

that international market is future of FMCG.

1. Basu Purba (2004), suggested that the lifestyle of

urban consumers is changing. Urban Indian market and the

marketing strategy have become the latest marketing

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buzzword for most of the FMCG majors. She takes into

consideration the study of National Council for Applied

Economic Research (NCAER). According to the NCAER

projections, the number of middle and high-income

households in international area is expected to grow from

140 million to 190 million by 2013. In urban India, the same

is expected to grow from 65 million to 79 million. Thus, the

absolute size of international market is expected to be

double that of urban India.

As per our concern of the research, it is a

detail study of different FMCG products used by international

consumers. It will provide detail information about consumer

preferences towards a good number of FMCG products which

is too unique and different from those previous researches.

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Research objectives

To understand the demand pattern of FMCG products in

the international market.

To know the amount of household income spent on the

consumption of FMCG products.

To understand the image of the products in the eyes of

the international consumers.

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Research methodology

Data collection

Sample unit:

1. working people (including men & women)

2. college students

3. school students

4. senior citizens

Sample size:

1. working people: 32%

2. college students: 29%

3. school students: 23%

4. senior citizens: 16%

Sampling region:

1. The researchers have selected Singapore, as their area

of study.

2. We have chosen Ang Mo Kio, Little India, Tampines and

Orchard as her areas of research. In these areas she

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can easily meet working people (both male & female),

school students, college students & senior citizens.

Sampling procedure:

The researcher will take stratified random sampling as

the sampling procedure.

Data collection method:

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

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jargons are avoided to ensure that there is no confusion for

respondents.

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Analysis(Considering only the buyers

buying Indian Origin Goods And Data comprising only of Indian

goods.)

1. Which soap u prefer to use?

The reaction of people towards various Indian SOAP

brands can be tabulated in the following manner:

Brands Lux Dettol Lifebuoy others

Percenta

ge36 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

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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:

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0

5

10

15

20

25

30

35

40

percentage

brands

demand of soap brands

lux

dettol

lifebuoy

others

2. Which pack u prefer to use? In order to determine the income pattern of the

consumers, it was necessary for the researcher to

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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:

Packs of soaps Single packFamily pack (3 in

1)

Percentage 56 44

In the survey that the researchers conducted,

they 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.

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This data can be graphically explained with the help

of the following bar graph:

0

10

20

30

40

50

60

percentage

packs preferred bycustomers

demand of packs of soap

single pack

family pack ( 3 in 1 )

1. Which tea u prefer to use?

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The reaction of people towards various TEA brands can

be tabulated in the following manner:

Brands Tata TeaBrooke

BondTaj Mahal Others

Percenta

ge32 28 18 22

In the survey that the researchers 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.

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This data can be graphically explained with the help of the following bar graph:

0

5

10

15

20

25

30

35

percentage

brands

demand of tea brands

tata tea

brooke bond

taj mahal

others

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2. Which tea pack u prefer to use?

In order to determine the income pattern of the

consumers, it was necessary for the researchers 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:

TEA packs SachetMedium

packLarge pack

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.

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This data can be graphically explained with the

help of the following diagram:

0

10

20

30

40

50

percentage

packs preferred by customers

demand of tea packs

sachet

medium pack

large pack

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3. Which tooth paste u prefer to use?

However, the reaction of people towards various

TOOTH PASTES can be tabulated as follows:

BrandsPepsoden

tColgate Close Up Others

Percenta

ge27 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.

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This data can be graphically explained with the

help of the following bar graph:

0

5

10

15

20

25

30

35

percentage

brands

demand of tooth paste

pepsodent

colgate

close up

others

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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:

Tooth paste

packSmall pack

Medium

packFamily pack

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.

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This data can be graphically explained with the help

of the following graph:

0

10

20

30

40

50

percentage

packs preferred by customers

demand of packs of tooth paste

small pack

medium pack

family pack

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5. Which detergent u prefer to use?

The reaction of people towards various DETERGENT

brands can be tabulated in the following manner:

Brands Surf Rin Tide Others

Percenta

ge27 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.

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This data can be graphically explained with the

help of the following bar graph:

0

5

10

15

20

25

30

35

percentage

brands

demand of detergents

surf

rin

tide

others

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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:

Detergent

packsSachet

Medium

packFamily pack

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%

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consumers demand family packs. 27% consumers demand

medium packs.

This data can be graphically explained with the

help of the following bar graph:

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05

1015202530354045

percentage

packs preferred by customers

demand of detergent packs

sachet

medium pack

family pack

7. Which shampoo u prefer to use?

The reaction of people towards various SHAMPOO

brands can be tabulated in the following manner:

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BrandsClinic

plusSunsilk

Head &

shouldersOthers

Percenta

ge33 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%.

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This data can be graphically explained with the help of the

following bar graph:

0

5

10

15

20

25

30

35

percentage

brands

demand of shampoo

clinic plus

sunsilk

head & shoulders

others

8. Which pack u prefer to use?

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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

packssachet

Small

pack

Medium

pack

Family

pack

Percenta

ge23 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.

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This data can be graphically explained with the

help of the following bar graph:

0

5

10

15

20

25

30

35

percentage

packs preferred by customers

demand of shampoo packs

sachet

small pack

medium pack

large pack

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9. Which biscuits u prefer to use?

The reaction of people towards various BISCUITS brands can

be tabulated in the following manner:

BrandsMarie

goldGood Day Parle G Others

Percenta

ge24 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%.

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This data can be graphically explained with the help of the

following bar graph:

0

5

10

15

20

25

30

35

40

percentage

brands

demand of biscuits

marie gold

good day

parle G

others

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10. which hair oil u prefer to use?

The reaction of people towards various HAIR OIL brands can

be tabulated in the following manner:

BrandsParachut

e

Dabur

Amla

Dabur

VatikaOthers

Percenta

ge37 29 19 15

In the survey, that the researcher conducted, it can

easily be concluded that PARACHUTE, the product of MERICO

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.

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This data can be graphically explained with the help of

the following bar graph:

0

5

10

15

20

25

30

35

40

percentage

brands

demand of hair oil

parachute

dabur amla

dabur vatika

others

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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:

Hair oil

packs

Small pack Medium

pack

Large pack

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

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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:

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05

1015202530354045

percentage

packs preferred by customers

demand of packs of hair oil

small pack

medium pack

large pack

12. Which cream u prefer to use?

The reaction of people towards various CREAM brands can

be tabulated in the following manner:

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Brands Pond’sFair &

lovelyAyur Others

Percenta

ge28 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.

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This data can be graphically explained with the

help of the following bar graph:

0

5

10

15

20

25

30

35

percentage

brands

demand of creams

ponds

fair & lovely

ayur

others

13. Which coffee u prefer to use?

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The reaction of people towards various COFFEE brands can

be tabulated in the following manner:

Brands Bru Nestle Nescafe Others

Percenta

ge26 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.

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This data can be graphically explained with the

help of the following bar graph:

0

5

10

15

20

25

30

35

percenatge

brands

demand of coffee

bru

nestle

nescafe

others

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Conclusions

In this report, it can very easily be

concluded that HUL, holds major portion of the FMCG

market. It holds major shares in the soap, detergent,

shampoo & cream’s category. HUL’s products are mainly in

demand, because they provide these products in different

packs.. So, they prefer buying the small or the medium

packs. However, large or family packs are still been bought

by few consumers, who are from a well – off families.

In the case of TEA, TATA holds a major share. In

the case of COFFEE, NESTLE & NESCAFE holds the major

share. Rural consumers favor TATA because it is an old

organization & it has gained a lot of BRAND EQUITY which

finally creates BRAND LOYALTY. In these products,

consumers do get brand loyal, because they do not want to

take a risk with their tastes. So they prefer sticking to one

brand. These organizations supply their products in various

packs (small, medium & large), considering the buying

capacity of their consumers.

As in the case of BISCUITS, BRITANNIA holds

the major market share. Rural consumers favor BRITANNIA

because it is an old organization & it has gained a lot of

BRAND EQUITY which finally creates BRAND LOYALTY. In

case of BISCUITS, consumers do get brand loyal, because

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they do not want to take a risk with their tastes. So they

prefer sticking to one brand. These organizations supply

their products in various packs (small, medium & large),

considering the buying capacity of their consumers.

In the case of TOOTH PASTES, COLGATE

PALMOLIVE holds a major market share. Consumers are very

concerned about their health, so if any product suits them

they prefer sticking to that product. And this product is also

available in various packs, so various consumers can use it

according to their buying capacity.

In the case of HAIR OILS, MERICO holds the

major market share. MERICO is a much known organization

& its product PARACHUTE has reached all the places. So it is

a known product, which has created a good amount of

goodwill for the organization. Consumers have confidence &

trust in their product. Therefore, they prefer buying it.

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Suggestions & recommendationsThe researchers would like to suggest the following points,

so that the organizations can easily sell their products to

their consumers:

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.

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(*4A= Availability, Affordability, Acceptability,

Awareness)

References

1. Kearney, A T, CII – Report, (2000)

2. Center for Monitoring Indian Economy (CMIE)

3. Statistical Outline of India (2001-02), NCAER

4. National Council of Applied Economic Research (NCAER)

5. Indian readership survey (IRS)

6. http://www.upgov.nic.in/upinfo/census01/cen01-1.htm

7.Lucknow Development Authority

8.http://www.naukrihub.com/india/fmcg/overview/

9.http://en.wikipedia.org/wiki/Fast_moving_consumer_goods

10. *4A= Availability, Affordability, Acceptability, Awareness

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Questionnaire

1. name:2. occupation:3. monthly salary:4. address:5. phone no.:

6. which soap u prefer to use?a. Luxb. dettolc. lifebuoyd. others

7. which pack u prefer to use?a. single b. family pack ( 3 in 1)

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8. which tea u prefer to use?a. tata teab. brooke bondc. taj mahald. others

9. which pack u prefer to use?a. sachetb. medium packc. large pack

10. which tooth paste u prefer to use?a. pepsodentb. colgatec. close – upd. others

11. which pack u prefer to use?a. small pack b. medium pack c. family pack

12. which detergent u prefer to use?a. surfb. rinc. tided. others

13. which pack u prefer to use?a. sachetb. medium pack c. large pack

14. which shampoo u prefer to use?

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a. clinic plusb. sunsilkc. head & shouldersd. others

15. which pack u prefer to use?a. sachetb. small pack c. medium pack d. large pack

16. which biscuits u prefer to use?a. marie goldb. good dayc. parle - Gd. others

17. which hair oil u prefer to use?a. parachuteb. dabur amla c. dabur vatikad. others

18. which pack u prefer to use?a. small pack b. medium pack c. large pack

19. which cream u prefer to use?a. pondsb. fair & lovelyc. ayurd. others

20. which coffee u prefer to use?

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a. brub. nestle c. Nescafed. others