consumer behavior in fmcg products

8/3/2019 Consumer behavior in FMCG products

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Dissertation Report On

Consumer Behavior in

FMCG Products

Submitted To:

Submitted By:

Ms, Debjani BhattacharyaDiveya Khullar

Professor MBA

(Marketing & Operations)

Niilm Centre for Management Studies Niilm

Centre for Management Studies


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Acknowledgement

I consider my proud privilege to express deep sense of gratitude to

Prof. Debjani Bhattacharya for her admirable and valuable

guidance, keen interest, encouragement and constructive

suggestions during the course of the project.

I would also like to express my hearty gratitude to my

faculty guides, Prof. Arun Kumar for their valuable guidance and

sincere cooperation, which helped me in completing this dissertation

project.

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

members of my department for their immense support and

assistance extended during the course of this project and in makingit a valuable experience.

Diveya Khullar

MBA (Marketing & Operations)


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Dissertation Report For

Consumer Behaviour

In


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The FMCG (Fast Moving Consumer Goods)

Sector

Executive summary


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The Indian FMCG sector is the fourth largest sector in the economy with a total

market size in excess of US$ 13.1 billion.

It has a strong MNC presence and is characterized by a well-establisheddistribution network, intense competition between the organized and

unorganized segments and low operational cost.

Availability of key raw materials, cheaper labor costs and presence across the

entire value chain gives India a competitive advantage.

The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4billion in 2015. Penetration level as well as per capita consumption in most

product categories like jams, toothpaste, skin care, hair wash etc in India is low

indicating the untapped market Potential. Burgeoning Indian population,

particularly the middle class and the rural segments, presents an opportunity to

makers of branded products to convert consumers to branded products. Growth

is also likely to come from consumer 'upgrading' in the matured product

categories. With 200 million people expected to shift to processed andpackaged food by 2010, India needs around US$ 28 billion of investment in the

food-processing industry


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Introduction

Fast Moving Consumer Goods (FMCG), are products that are sold quickly at

relatively low cost. Though the absolute profit made on FMCG products is

relatively small, they generally sell in large quantities, so the cumulative profit

on such products can be large. Examples of FMCG generally include a wide

range of frequently purchased consumer products such as toiletries, soap,

cosmetics, teeth cleaning products, shaving products and detergents, as well as

other non-durables such as glassware, light bulbs, batteries, paper products and

plastic goods.[1] FMCG may also include pharmaceuticals, consumer electronics,

packaged food products and drinks, although these are often categorized

separately.

FMCG products contrast with durable goods or major appliances such as kitchen

appliances, which are generally replaced less than once a year. In Britain, "white

goods" in FMCG refers to large household electronic items such as refrigerators.

Smaller items such as TV sets and stereo systems are sometimes termed"brown goods".[

FMCG industry, alternatively called as CPG (Consumer packaged goods)

industry primarily deals with the production, distribution and marketing of

consumer packaged goods. The Fast Moving Consumer Goods (FMCG) are those

consumables which are normally consumed by the consumers at a regular
http://en.wikipedia.org/wiki/Fast_moving_consumer_goods#cite_note-0http://en.wikipedia.org/wiki/Durable_goodhttp://en.wikipedia.org/wiki/Major_appliancehttp://en.wikipedia.org/wiki/Fast_moving_consumer_goods#cite_note-0http://en.wikipedia.org/wiki/Durable_goodhttp://en.wikipedia.org/wiki/Major_appliance


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interval. Some of the prime activities of FMCG industry are selling, marketing,

financing, purchasing, etc. The industry also engaged in operations, supply

chain, production and general management.

FMCG industry provides a wide range of consumables and accordingly the

amount of money circulated against FMCG products is also very high. The

competition among FMCG manufacturers is also growing and as a result of this,

investment in FMCG industry is also increasing, specifically in India, where FMCG

industry is regarded as the fourth largest sector with total market size of

US$13.1 billion. FMCG Sector in India is estimated to grow 60% by 2010. FMCG

industry is regarded as the largest sector in New Zealand which accounts for 5%

of Gross Domestic Product (GDP).

Some common FMCG product categories include food and dairy products,

glassware, paper products, pharmaceuticals, consumer electronics, packaged

food products, plastic goods, printing and stationery, household products,

photography, drinks etc. and some of the examples of FMCG products are

coffee, tea, dry cells, greeting cards, gifts, detergents, tobacco and cigarettes,watches, soaps etc.

Some of the merits of FMCG industry, which made this industry as a potential

one are low operational cost, strong distribution networks, presence of

renowned FMCG companies. Population growth is another factor which is

responsible behind the success of this industry

FMCG industry creates a wide range of job opportunities. This industry is a

stable, diverse, challenging and high profile industry providing a wide range of

job categories like sales, supply chain, finance, marketing, operations,

purchasing, human resources, product development, general management.

Some of the well known FMCG companies are Sara Lee, Nestl, ReckittBenckiser, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, GeneralMills, Pepsi and Mars etc


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WHY INDIA

Large domestic market

India is one of the largest emerging markets, with a population of over onebillion. India is one of the largest economies in the world in terms of purchasing

power and has a strong middle class base of 300 million.

Now India has two major sectors where the market can be spotted. Urban and

Rural markets.

Rural-urban profile

Urban Rural

Population 2001 02 (mn house

hold)

53 135

Population 2009-10 (mn

household)

69 153

% Distribution (2001-02) 28 72

Market (Towns/Villages) 3,768 627,000

Universe of Outlets (mn) 1 3.3


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Around 70 per cent of the total households in India (188 million) resides in the

rural areas. The total number of rural households is expected to rise from 135

million in 2001-02 to 153 million in

2009-10, this presents the largest potential market in the world. The annual sizeof the rural FMCG market was estimated at around US$ 10.5 billion in 2001-02.

With growing incomes at both the

rural and the urban level, the market potential is expected to expand further.

India - a large consumer goods spender

An average Indian spends around 40 per cent of his income on grocery and 8

per cent on personal care products. The large share of fast moving consumergoods (FMCG) in total individual spending along with the large population base

is another factor that makes India one of the largest FMCG markets.

Consumption pie

EXPENDITURE

Consumer Durables

clothing

vacations

eating out

footwear

entertainment

accessories

books and music

grocery

personal care

home textiles

savings and investments


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Even on an international scale, total consumer expenditure on food in India at

US$ 120 billion is amongst the largest in the emerging.

Change in the Indian consumer profile

Consumer Profile

1999 2001 2006

Population (millions) 846 1,012 1,087

Population < 25 years of age 480 546 565

Urbanisation (%) 26 28 31

Rapid urbanisation, increased literacy and rising per capita income, have all

caused rapid growth and change in demand patterns, leading to an explosion of

new opportunities. Around 45 per cent of the population in India is below 20

years of age and the young population is set to rise further. Aspiration levels in

this age group have been fuelled by greater media exposure, unleashing a

latent demand with more money and a new mindset.

Demand-supply gap

Currently, only a small percentage of the raw materials in India are processed

into value added products even as the demand for processed and convenience


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food is on the rise. This demand supply gap indicates an untapped opportunity

in areas such as packaged form, convenience food and drinks, milk products

etc. In the personal care segment, the low penetration rate in both the rural and

urban areas indicates a market potential.

FMCG Category and

products

Health care

Fabric wash (laundry soaps and

synthetic detergents); household

cleaners (dish/utensil cleaners,

floor cleaners, toilet cleaners, air

fresheners, insecticides and

mosquito repellents, metal polish and furniture polish).

Food and beverages

Health beverages; soft drinks; staples/cereals; bakery products (biscuits,

bread, cakes); snack food; chocolates; ice cream; tea; coffee; soft

drinks; processed fruits, vegetables; dairy products; bottled water; branded

flour; branded rice; branded sugar; juices etc.

Personal care

Oral care, hair care, skin care, personal wash (soaps); cosmetics and

toiletries; deodorants; perfumes; feminine hygiene; paper products.


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Worlds View and India

The structure

The Indian FMCG sector is the fourth largest sector in the economy and createsemployment for three million people in downstream activities. Within the FMCG

sector, the Indian food processing industry represented 6.3 per cent of GDP and

accounted for 13 per cent of the country's exports in 2003-04. A distinct feature

of the FMCG industry is the presence of most global players through their

subsidiaries (HLL, P&G, Nestle), which ensures new product launches in the

Indian market from the parent's portfolio.

Critical operating rules in Indian FMCG sector

Heavy launch costs on new products on launch advertisements, free samples

and product promotions.

Majority of the product classes require very low investment in fixed assets

Existence of contract manufacturing


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Marketing assumes a significant place in the brand building process

Extensive distribution networks and logistics are key to achieving a high level

of penetration in both the urban and rural markets

Factors like low entry barriers in terms of low capital investment, fiscal

incentives from government and low brand awareness in rural areas have led to

the mushrooming of the unorganised sector

Providing good price points is the key to success.

Here are a few breakups of what Indian standards look like when compared with

the other similar or powerfull countries. Few examples as to where our country

stands


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Indian

FMCG market in the Urban Sector


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Most Indian FMCG companies focus on urban markets for value and ruralmarkets for volumes. The total market has expanded from US$ 17.6 billion in

1992-93 to US$ 22 billion in 1998-99 at current prices. Rural demand

constituted around 52.5 per cent of the total demand in 1998-99. Hence, rural

marketing has become a critical factor in boosting bottomlines. As a result, most

companies' have offered low price products in convenient packaging. These

contribute the majority of the sales volume. In comparison, the urban elite

consumes a proportionately higher value of FMCGs, but not volume.


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Local Kirana Shops

Products

Household care

The size of the fabric wash market is estimated to be US$ 1 billion, household

cleaners to be US$ 239 million and the production of synthetic detergents at 2.6million tonnes. The demand for detergents has been growing at an annual

growth rate of 10 to 11 per cent during the past five years. The urban market

prefers washing powder and detergents to bars on account of convenience of

usage, increased purchasing power, aggressive advertising and increased

penetration of washing machines. The regional and smallunorganised players

account for a major share of the total detergent market in volumes.

Personal care

The size of the personal wash products is estimated at US$ 989 million; hair

care products at US$ 831 million and oral care products at US$ 537 million.

While the overall personal wash market is growing at one per cent, the premium

and middle-end soaps are growing at a rate of 10 per cent. The leading players

in this market are HLL, Nirma, Godrej Soaps and Reckitt & Colman. The oral care

market, especially toothpastes, remains under penetrated in India (with

penetration level below 45 per cent) due to lack of hygiene awareness amongrural markets. The industry is very competitive both for organised and smaller

regional players. The Indian skin care and cosmetics market is valued at US$


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274 million and dominated by HLL, Colgate Palmolive, Gillette India and Godrej

Soaps. This segment has witnessed the entry of a number of international

brands, like Oriflame, Avon and Aviance leading to increased competition. The

coconut oil market accounts for 72 per cent share in the hair oil market. In thebranded coconut hair oil market, Marico (with Parachute) and Dabur are the

leading players. The market for branded coconut oil is valued at approximately

US$ 174 million.

Food and Beverages Food

According to the Ministry of Food Processing, the size of the Indian food

processing industry is around US$ 65.6 billion including US$ 20.6 billion of value

added products. Of this, the health beverage industry is valued at US$ 230

billion; bread and biscuits at US$ 1.7 billion; chocolates at US$ 73 million and

ice creams at US$ 188 million. The size of the semi-processed/ready to eat food

segment is over US$ 1.1 billion. Large biscuits & confectionery units,

soyaprocessing units and starch/glucose/sorbitol producing units have also

come up, catering to domestic and international markets. The three largest

consumed categories of packaged foods are packed tea, biscuits and soft

drinks.

Beverages

The Indian beverage industry faces over supply in segments like coffee and tea.

However, more than half of this is available in unpacked or loose form. Indian

hot beverage market is a tea dominant market. Consumers in different parts of

the country have heterogeneous tastes. Dust tea is popular in southern India,

while loose tea in preferred in western India. The urban-rural split of the tea

market was 51:49 in 2000. Coffee is consumed largely in the southern states.

The size of the total packaged coffee market is 19,600 tonnes or US$ 87 million.

The urban rural split in the coffee market was 61:39 in 2000 as against 59:41 in

1995. The total soft drink (carbonated beverages and juices) market is

estimated at 284 million crates a year or US$ 1 billion. The market is highly

seasonal in nature with consumption varying from 25 million crates per month

during peak season to 15 million during offseason. The market is predominantly


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urban with 25 per cent contribution from rural areas. Coca cola and Pepsi

dominate the Indian soft drinks market.

Exports

India is one of the world's largest producers for a number of FMCG products but

its exports are a very small proportion of the overall production. Total exports of

food processing industry was US$ 2.9 billion in 2001-02 and marine products

accounted for 40 per cent of the total exports. Though the Indian companies are

going global, they are focusing more on the overseas markets like Bangladesh,

Pakistan, Nepal, Middle East and the CIS countries because of the similar

lifestyle and consumption habits between these countries and India. HLL, Godrej

Consumer, Marico, Dabur and Vicco laboratories are amongst the top exporting

companies.

National Players

Domestic players

Britannia India Ltd (BIL)

Britannia India Ltd was incorporated in 1918 as Britannia Biscuit Co Ltd andcurrently the Groupe Danone (GD) of France (a global major in the food

processing business) and the Nusli Wadia Group hold a 45.3 per cent equity

stake in BIL through AIBH Ltd (a 50:50 joint venture). BIL is a dominant player in

the Indian biscuit industry, with major brands such as Tiger glucose, Mariegold,

Fifty-Fifty, Good Day, Pure Magic, Bourbon etc. The company holds a 40 per

cent market share in the overall organised biscuit market and has a capacity of

300,000 tonne per annum. Currently, the bakery product business accounts for99.1 per cent of BIL's turnover. The company reported net sales of US$ 280

million in 2002-03. Britannia Industries Ltd (BIL) plans to increase its


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manufacturing capacity through outsourced contract manufacturing and a

greenfield plant in Uttaranchal to expand its share in the domestic biscuit and

confectionery market.

Dabur India LtdEstablished in 1884, Dabur India Ltd is the largest Indian FMCG and ayurvedic

products company. The group comprises Dabur Finance, Dabur Nepal Pvt Ltd,

Dabur Egypt Ltd, Dabur Overseas Ltd and Dabur International Ltd. The product

portfolio of the company includes health care, food products, natural gums &

allied chemicals, pharma, and veterinary products. Some of its leading brands

are Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola, Lal Dant Manjan, Pudin

Hara and the Real range of fruit juices. The company reported net sales of US$218 million in 200304. Dabur has firmed up plans to restructure its sales and

distribution structure and focus on its core businesses of fast-moving consumer

good products and over-the-counter drugs. Under the restructured set-up, the

company plans to increase direct coverage to gap outlets and gap towns where

Dabur is not present. A roadmap is also being prepared to rationalise the

stockists' network in different regions between various products and divisions.

Indian Tobacco Corporation Ltd (ITCL)Indian Tobacco Corporation Ltd is an associate of British American Tobacco with

a 37 per cent stake. In 1910 the company's operations were restricted to

trading in imported cigarettes. The company changed its name to ITC Limited in

the mid seventies when it diversified into other businesses. ITC is one of India's

foremost private sector companies with a turnover of US$ 2.6 billion. While ITC

is an outstanding market leader in its traditional businesses of cigarettes,

hotels, paperboards, packaging and agriexports, it is rapidly gaining marketshare even in its nascent businesses of branded apparel, greeting cards and

packaged foods and confectionary. After the merger of ITC Hotels with ITC Ltd,

the company will ramp up its growth plans by strengthening its alliance with

Sheraton and through focus on international projects in Dubai and the Far East.

ITC's subsidiary, International Travel House (ITH) also aims to launch new

products and services by way of boutiques that will provide complete travel

services.Marico


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Marico is a leading Indian Group incorporated in 1990 and operating in

consumer products, aesthetics services and global ayurvedic businesses. The

company also markets food products and distributes third party products.

Marico owns well-known brands such as Parachute, Saffola, Sweekar, ShantiAmla, Hair & Care, Revive, Mediker, Oil of Malabar and the Sil range of

processed foods. It has six factories, and sub-contract facilities for production. In

2003-04, the company reported a turnover of US$ 200 million. The overseas

sales franchise of Marico's branded FMCG products is one of the largest

amongst Indian companies. It is also the largest Indian FMCG company in

Bangladesh. The company plans to capture growth through constant

realignment of portfolio along higher margin lines and focus on volume growth,consolidation of market shares, strengthening flagship brands and new product

offerings (2-3 new product launches are expected in 2004-05). It also plans to

expand its international business to Pakistan.

Nirma Limited

Nirma Ltd, promoted by Karsanbhai Patel, is a homegrown FMCG major with a

presence in the detergent and soap markets. It was incorporated in 1980 as a

private company and was listed in fiscal 1994. Associate companies' Nirma

Detergents, Shiva Soaps and Detergents, Nirma Soaps and Detergents and

Nilnita Chemicals were merged with Nirma in 1996-1997. The company has also

set up a wholly owned subsidiary Nirma Consumer Care Ltd, which is the sole

marketing licensee of the Nirma brand in India. Nirma also makes alfa olefin,

fatty acid and glycerine. Nirma is one of the most successful brands in the rural

markets with extremely low priced offerings. Nirma has plants located in

Gujarat, Madhya Pradesh and Uttar Pradesh. Its new LAB plant is located in

Baroda and the soda ash complex is located in Gujarat. Nirma has strong

distributor strength of 400 and a retail reach of over 1 million outlets. The

company reported gross sales of US$ 561 million in 2003-04. It plans to

continue to target the mid and mass segments for future growth.

Foreign Players


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Cadbury India Ltd

is a 93.5 per cent subsidiary of Cadbury Schweppes Plc, UK, a global major in

the chocolate and sugar confectionery industry. CIL was set up as a trading

concern in 1947 and subsequently began its operations with the small scaleprocessing of imported chocolates and food drinks. CIL is currently the largest

player in the chocolate industry in India with a 70 per cent market share. The

company is also a key player in the malted foods, cocoa powder, drinking

chocolate, malt extract food and sugar confectionery segment. The company

had also entered the soft drinks market with brands like 'Canada Dry' and

'Crush', which were subsequently sold to Coca Cola in 1999. Established brands

include Dairy Milk, Perk, Crackle, 5 Star, clairs, Gems, Fructus, Bournvita etc.The company reported net sales of US$ 160 million in 2003. The company plans

to increase the number of retail outlets for future growth and market expansion.

Cargill

Cargill Inc is one of the world's leading agri-business companies with a strong

presence in processing and merchandising, industrial production and financial

services. Its products and geographic diversity (over 40 product lines with a

direct presence in over 65 countries and business activities in about 130countries) as well as its vast communication and transportation network help

optimise commodity movements and provide competitive advantage. Cargill

India was incorporated in April 1996 as a 100 per cent subsidiary of Cargill Inc of

the US. It is engaged in trading in soyabean meals, wheat, edible oils, fertilisers

and other agricultural commodities besides marketing branded packaged foods.

It has also set up its own anchorage facilities at Rosy near Jamnagar in Gujarat

for efficient handling of its import and export consignments.Coca Cola

Coca-Cola started its India operations in 1993. The Coca-Cola system in India

comprises 27 wholly company-owned bottling operations and another 17

franchisee-owned bottling operations. A network of 29 contract-packers also

manufacture a range of products for the company. Leading Indian brands

Thums Up, Limca, Maaza, Citra and Gold Spot exist in the Company's

international family of brands along with Coca-Cola, Diet Coke, Kinley, Spriteand Fanta, plus the Schweppes product range. During the past decade, the


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Coca-Cola system has invested more than US$ 1 billion in India. In 2003, Coca-

Cola India pledged to invest a further US$ 100 million in its operations.

Colgate-Palmolive IndiaColgate Palmolive India is a 51 per cent subsidiary of Colgate Palmolive

Company, USA. It is the market leader in the Indian oral care market, with a 51

per cent market share in the toothpaste segment, 48 per cent market share in

the toothpowder market and a 30 per cent share in the toothbrush market. The

company also has a presence in the premium toilet soap segment and in

shaving products, which are sold under the Palmolive brand. Other wellknown

consumer brands include Charmis skin cream and Axion dish wash. Thecompany reported sales of US$ 226 million in 2003-04. The company's strategy

is to focus on growing volumes by improving penetration through aggressive

campaigning and consumer promotions. The company plans to launch new

products in oral and personal care segments and is prepared to continue

spending on advertising and marketing to gain market share. Margin gains are

being targeted through efficient supply chain management and bringing down

cost of operations.H J Heinz Co

A US$ 8.4 billion American foods major, H J Heinz Co comprises 4,000 strong

brand buffet in infant food, sauces and condiments. The company was the first

to commence manufacturing and bottling of tomato ketchup in 1876. In India,

Heinz has a presence through its 100 per cent subsidiary Heinz India Pvt Ltd.

Heinz acquired the consumer products division of pharmaceutical major Glaxo in

1994. Heinz's product range in India consists of Complan milk beverage, healthdrink Glucon-D, infant food Farex and Nycil prickly heat powder, besides the

Heinz ketchup range.

Hindustan Lever Ltd (HLL)

Hindustan Lever Ltd is a 51 per cent owned subsidiary of the Anglo-Dutch giant

Unilever, which has been expanding the scope of its operations in India since

1888. It is the country's biggest consumer goods company with net sales of US$

2.4 billion in 2003. HLL is amongst the top five exporters of the country and alsothe biggest exporter of tea and castor oil. The product portfolio of the company

includes household and personal care products like soaps, detergents,


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shampoos, skin care products, colour cosmetics, deodorants and fragrances. It

is also the market leader in tea, processed coffee, branded wheat flour, tomato

products, ice cream, jams and squashes. HLL enjoys a formidable distribution

network covering over 3,400 distributors and 16 million outlets.

Nestle India Ltd (NIL)

Nestle India Ltd a 59.8 per cent subsidiary of Nestle SA, Switzerland, is a leading

manufacturer of food products in India. Its products include soluble coffee,

coffee blends and teas, condensed milk, noodles (81 per cent market share),

infant milk powders (75 per cent market share) and cereals (80 per cent market

share). Nestle has also established its presence in chocolates, confectioneries

and other processed foods. Soluble beverages and milk products are the major

contributors to Nestle's total sales. Some of Nestle's popular brands are

Nescafe, Milkmaid, Maggi and Cerelac. The company has entered the chilled

dairy segment with the launch of Nestle Dahi and Nestle Butter. Nestle has also

made a foray in non-carbonated cold beverages segment through placement of

Nestea iced tea and Nescafe Frappe vending machines. Exports contribute to 23

per cent of its turnover and the company reported net sales of US$ 440 million

in 2003


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PepsiCo

PepsiCo is a world leader in convenient foods and beverages, with revenues of

about US$ 27 billion. PepsiCo brands are available in nearly 200 markets across

the world. The company has an extremely positive outlook for India. "Outside

North America two of our largest and fastest growing businesses are in India

and China, which include more than a third of the world's population" (Pepsico's

annual report). PepsiCo entered India in 1989 and is concentrating on three

focus areas - soft drink concentrate, snack foods and vegetable and food

processing. PepsiCo's success is the result of superior products, high standards

of performance and distinctive competitive strategies.

Procter & Gamble Hygiene and Health Care Limited

Richardson Hindustan Limited (RHL), manufacturer of the Vicks range of

products, was rechristened 'Procter & Gamble India' in October 1985, following

its affiliation to the 'Procter & Gamble Company', USA. Procter & Gamble

Hygiene and Health Care Limited (PGHHCL) acquired its current name in 1998,reflecting the two key segments of its business. P&G, USA has a 65 per cent

stake in PGHHCL. The parent also has a 100 per cent subsidiary, Procter &

Gamble Home Products (PGHP). The overall portfolio of the company includes

healthcare; feminine-care; hair care and fabric care businesses. PGHH operates

in just two business segments - Vicks range of cough & cold remedies and

Whisper range of feminine hygiene. The detergent and shampoo business has

been relocated globally to Vietnam. The company imports and markets most of

the products from South East Asian countries and China, while manufacturing,

marketing and export of Vicks and sanitary napkins has been retained in India.

The company reported sales of US$ 91 million in 2002-03. The parent company

has announced its plan to explore further external collaborations in India to

meet its global innovation and knowledge needs.


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Research objectives

To understand the demand pattern of FMCG products in the rural 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 consumers.

Research methodology

Data collection

Sample unit:

1. working people (including men & women)

2. college students

3. school students4. senior citizens

Sample size:

1. working people: 32%

2. college students: 29%

3. school students: 23%

4. senior citizens: 16%

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.


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2. Secondary data: it will be collected with the help of books, research

papers, magazines, news papers, journals, internet, etc.

Research instruments:

Questionnaire design:

As the questionnaire is self administrated one, the survey is kept simple and

user friendly. Words used in questionnaire are readily understandable to all

respondent. Also technical jargons are avoided to ensure that there is no

confusion for respondents.

Panoramic View

India has a population of over 1 billion & 4 climatic Zones. Several

religious & personal beliefs, 15 languages, different social customs & food

habits categorize Indian consumer class. Besides this, India is also different in

culture if compared with other Asian countries. Therefore, India has highdistinctiveness in demand and the companies in India can get lot of market

opportunities for various classes of consumers. Consumer goods marketers

experience that dealing with India is like dealing with many small markets at the

same time.

Indian consumer goods market is expected to reach $400 billion by

2010. India has the youngest population amongst the major countries. There area lot of young people in India in different income categories.

Consumer goods marketers are often faced with a dilemma regardingthe choice of appropriate market segment.

In India they do not have to face this dilemma largely because rapidurbanization, increase in demand, presence of large number of youngpopulation, any number of opportunities is available. The bottom line is that

Indian market is changing rapidly and is showing unprecedented consumerbusiness opportunity.


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Indian consumer class can be classified according to the following

criteria:

1. Income

2. Socio-Economic status3. Age demographics

4. Geographical dispersion

Income based classification

India has a population of 1.095 billion people, comprising of 1/6th of

the world population. India's population can be divided into 5 groups on the

basis of annual household income. These groups are:

1. Higher income

2. Upper middle income

3. Middle middle income

4. Lower middle income

5. Lower income

The income classification does not represent a real scenario for an

international business because the purchasing power of currencies differs

significantly. The real purchasing power of Indian rupee is higher than the

international exchange value.

In addition to that, income classification is not an effective tool to

ascertain consumption and ownership trends in the economy.

Consumer Classification

According to National Council of Applied Economic Research (NCAER) there are

5 consumer classes that differ in their ownership patterns and consumption

behavior across various segments of goods.

Consumer

Classes

Annual Income in

Rs.

1996 2001 2007 Change

The RichRs. 215,000 and

more1.2 2.0 6.2 416%
http://www.naukrihub.com/india/fmcg/consumer-class/income/http://www.naukrihub.com/india/fmcg/consumer-class/socio-economic/http://www.naukrihub.com/india/fmcg/consumer-class/age/http://www.naukrihub.com/india/fmcg/consumer-class/geography/http://www.naukrihub.com/india/fmcg/consumer-class/income/http://www.naukrihub.com/india/fmcg/consumer-class/socio-economic/http://www.naukrihub.com/india/fmcg/consumer-class/age/http://www.naukrihub.com/india/fmcg/consumer-class/geography/


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The ConsumingClass

Rs 45- 215,000 32.5 54.6 90.9 179%

The Climbers Rs. 22-45,000 54.1 71.6 74.1 37%

The Aspirants Rs. 16-22,000 44 28.1 15.3 -65%

The Destitute Below Rs. 16,000 33 23.4 12.8 -61%

Total164.

8180.7 199.2 21%

Source: NCAER

Socio economic classification

In addition to income classification and consumer classification,

Indian households can also be segmented according to the occupation and

education levels of the chief earner of the household (the person who

contributes most to the household expenses). This is called as Socio-economic

Classification (SEC), which is mainly used by market planners to target market

before launching their new products. SEC is made to understand the purchase

behavior and the consumption pattern of the households.The urban area is segregated into: A1, A2, B1, B2, C, D, E1, E2

Socio-Economic Classification

Occupation Education

Illiterat

e

Lessthan4 yrs

inschoo

l

5-9yrs of

school

School

certificate

Some

college

Graduat

e

Post-

graduate

Skilled E2 E1 D C C B2 B2

Unskilled E2 E2 E1 D D D D

Shopowner

D D C B2 B2 A2 A2

Pettytrader

E2 D D C C B2 B2

Employer of-

Above 10persons

B1 B1 A2 A2 A1 A1 A1


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Below 10persons

C B2 B2 B1 A2 A1 A1

None D C B2 B1 A2 A1 A1

Clerk D D D C B2 B1 B1

Supervisor D D C C B2 B1 A2

Professional

D D D B2 B1 A2 A1

Seniorexecutive

B1 B1 B1 B1 A2 A1 A1

Juniorexecutive

C C C B2 B1 A2 A2

Source: Indian readership survey (IRS)

Sections A & B refer to High-class- constitutes over a quarter of urbanpopulation

Sec C refers to Middle-class-- constitutes 21% of the urban population

Sections D & E refer to Low-class-- constitutes over half the urban

population

To understand the table, consider an example: A trader whose monthlyhousehold income (MHI) is more than that of a person in section A cannot beincluded in this SEC because his educational qualification or occupations do notqualify him for inclusion.

Sec C constitutes households whose Chief Wage Earners are employed as:

Skilled workers 33%

Petty traders 12%

Clerk/Supervisor 37%

Shop owners 18%


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3/4th of them have studied till 10th or 12th class while the remaining 1/4th havestudied till 9th class.

Less than half of the Chief Wage Earners of households belonging to sections D

& E are unskilled workers. Petty Traders are 18%, while Skilled Workers are

about 28%. More than 80% of the population of upper strata consumers is living

in the top 7 cities. Those top 7 cities are Mumbai, Kolkata, Delhi, Chennai,

Ahmedabad, Bangalore, and Hyderabad. With increase in economic prosperity,

this population (upper strata consumers) is growing at 10 percent annually.

Age demographics

India is a very young nation, if compared with some advanced and

developed countries. Nearly two- thirds of its population is below the age of 35,

and nearly 50 % is below 25.

Marketers explain that the boom in the consumption level and leisure related

expenditure is because of this young population. It will have a significant impact

over the consumer goods market. In addition to that, it is expected that this will

Education of

chief wage

earner

Type of House

Pucca Semi-pucca Kuchcha

Professionaldegree

R1 R2 R3

Graduation/ PG R1 R2 R3

College R1 R2 R3

SSC/HSC R2 R3 R3

Class 4-Class 9 R3 R3 R4

Up to class 4 R3 R3 R4

Self-learning R3 R4 R4

Illiterate R4 R4 R4


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generate trade opportunities and continuous investment in the economy. There

is huge potential for further consumption of goods and services due to the

increased level of disposable income. The expenditure on essential goods and

services has a higher share in developing countries as compared with that ofdeveloped countries.

Age distribution if Indian population (In Millions)

Year/ Age 2006 2001 1996

Below 4 yrs 113.5 108.5 119.5

5-14 yrs 221.2 239.1 233.2

15-19 yrs 122.4 109.0 90.7

20-34 yrs 279.1 246.8 224

35-54 yrs 239.2 207.3 178.1

55 & above 118.7 101.7 88.7

Total 1094.1 1012.4 934.2

Consumption Trends

Food Essentials 45.68%

Essential Services (water,

power, rent, and fuels) 10.1%

Clothing

4.9%Footwear 0.63%


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Medicare 4.25%

Transport & Communication 14.51%

Recreation, Education, andCulture Less than 4%

Home Goods 3.25%

Geographical dispersion

There is large difference in economic prosperity levels among several states in

India, linked to the wealth creation from trade, industrial, and agricultural

development. There are poor districts in many states, classified according to

their market potential. India has 500 districts, out of which 150 districts

(category A) and next 150 districts (category B) account for 78% and 15% of the

national market potential respectively. Remaining 200 districts (category C) are

backward and account for only 7% of national market potential. Category C

districts have 40% of the geographical share.

Analysis

1. Which soap u prefer to use?

The reaction of people towards various SOAP brands can be tabulated in

the following manner:


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Brands Lux Dettol Lifebuoy others

Percentage 36 22 18 24

In the survey that the researcher conducted, it could easily be

concluded that LUX, the product of HUL was highly in demand. LUX, the product

of HUL covers 36% of the market share. After LUX, the other brands (EXCEPT

LUX, DETTOL, LIFEBUOY) covers 24% of the market share. This is then followed

by DETTOL, the product of RECKITT BENCKISER with a market share of 22%,

which is then followed by LIFEBUOY, the product of HUL with a market share of

18%.

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

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 distribute the consumers on the basis of their

demand for the various packs of SOAP brands available in the market.


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However, the reaction of people towards various packs of SOAP can be

tabulated in the following manner:

Packs of soaps Single pack Family pack (3 in 1)

Percentage 56 44

In the survey that the researcher conducted, she tried to

differentiate amongst people, with below average household income,

average household income & above household income. This classification can

be done on the basis of the daily expenditure that people make. 56%

consumers demand single pack. 44% consumers demand family packs i.e. 3

in 1 pack.

This data can be graphically explained with the help of the

following bar graph:

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?

The reaction of people towards various TEA brands can be tabulated in the

following manner:


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Brands Tata TeaBrooke

BondTaj Mahal Others


In the survey that the researcher conducted, it could easily be

concluded that TATA TEA, the product of TATA has a market share of 32%. This

is followed by, BROOKE BOND, with a market share of 28%. Followed by other

brands (EXCEPT TATA TEA, BROOKE BOND, TAJ MAHAL) with a market share of

22%. This is finally followed by TAJ MAHAL, the product of HUL which holds18%of the market share.

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

0

5

10

15

20

25

30

35

percentag

brands

demand of tea bran

tata tea

brooke bon

taj mahal

others

2. Which tea pack u prefer to use?


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demand for the various packs of TEA brands available in the market.

However, the reaction of people towards various TEA packs can be


TEA packs Sachet Medium pack Large pack

percentage 48 32 20


differentiate amongst the people, with below average household income,


be done on the basis of the daily expenditure that people make. However, it

can be concluded that sachets are most commonly used by the people .i.e.,

48% consumers demand sachet packs. 32% consumers demand medium

pack.20% consumers demand large pack.

This data can be graphically explained with the help of thefollowing diagram:

0

10

20

30

40

50

percentage

packs preferred by customers

demand of tea packs

sachet

medium pack

large pack

3. Which tooth paste u prefer to use?


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In the initial years, the rural consumers preferred tooth powders,

datoons etc. But from the last decade, the preference of consumers towards

toothpaste has been changed. A huge number of toothpastes of different

companies are sold in rural market.

However, the reaction of people towards various TOOTH PASTES can

be tabulated as follows:

Brands Pepsodent Colgate Close Up Others


In the survey that the researcher conducted, it could easily be seen that

COLGATE, the product of COLGATE PALMOLIVE is the market leader, which

covers 35% of the total market. After that, PEPSODENT, the product of HUL is

demanded by the customers, which covers 27% of the market share.

Followed by CLOSE UP, the product of HUL is demanded by the customers,

which covers 22% of the market share. Which is then followed by others

brands (EXCEPT PEPSODENT, COLGATE, CLOSE - UP), which covers 16% of

the total market share.

This data can be graphically explained with the help of the following

bar graph:

0

5

10

15

20

25

30

35

percentage

brands

demand of tooth past

pepsodent

colgate

close up

others


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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 demandfor 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 pack Family 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.


graph:

0

10

20

30

40

50

percentage


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


Brands Surf Rin Tide Others


In the survey that the researcher conducted, it could be easily

concluded that RIN, the product of HUL captures 35% of the total market

share. This is followed by SURF, the product of HUL which has a market share

of 27%. This is followed by TIDE, the product of PROCTER & GAMBLE which

has a market share of 27%. This is finally followed by other brands (EXCEPT

SURF, RIN, TIDE) which captures 16% of the market share.

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

0

5

10

15

20

25

30

35

percentage

brands

demand of detergents

surf

rin

tide

others


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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 pack Family pack

Percentage 43 27 30


differentiate amongst the people, with below average household income,


be done on the basis of the daily expenditure that people make. However, 43%

consumers demand sachet packs. 30% consumers demand family packs. 27%

consumers demand medium packs.


bar graph:


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0

5

10

15

20

25

30

3540

45

percentage


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:

Brands Clinic plus Sunsilk

Head &

shoulders Others


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 marketshare. This is followed by SUNSILK, the product of HUL which holds 25% of the

market share. Finally followed by other brands (EXCEPT CLINIC PLUS, SUNSILK,

HEAD & SHOULDERS) with a market share of 14%.

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

graph:


44/67

0

5

10

15

20

25

30

35

percentage

brands

demand of shampoo

clinic plus

sunsilk

head & shoulders

others



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


Shampoo

packssachet Small pack Medium

pack

Family

pack




income & above household income. This classification can be done on the basisof the daily expenditure that people make. However, 32% consumers demand


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SMALL PACK. 28% consumers demand medium pack. 17% consumers demand

large packs.


bar graph:

0

5

10

15

20

25

30

35

percentage


demand of shampoo packs

sachet

small pack

mediumpack

large pack

9. Which biscuits u prefer to use?

The reaction of people towards various BISCUITS brands can be tabulated in the

following manner:

Brands Marie gold Good Day Parle G Others


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%.


graph:


46/67

0

5

10

15

20

25

30

3540

percentage

brands

demandof biscuits

marie gold

goodday

parle G

others

10.Which hair oil u prefer to use?

The reaction of people towards various HAIR OIL brands can be tabulated in the

following manner:

Brands ParachuteDabur

Amla

Dabur

VatikaOthers


In the survey, that the researcher conducted, it can easily be

concluded that PARACHUTE, the product of MARICO captures 37% of the total

market share. This is followed by DABUR AMLA, the product of DABUR which

captures 29% of the total market share. This is followed by DABUR VATIKA,

another product of DABUR which captures 19% of the market. And after that,followed by other brands (EXCEPT PARACHUTE, DABUR AMLA, DABUR VATIKA)

captures 15% of the market share.


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graph:

0

5

10

15

20

25

30

35

40

percentage

brands

demand of hair oil

parachute

dabur amla

dabur vatika

others




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




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income & above household income. This classification can be done on the basis

of the daily expenditure that people make. However, 41% consumers demand

medium packs. After that, 32% consumers demand small pack. 27% consumers

demand large packs.


graph:

0

5

10

15

20

25

30

35

40

45

percentage


demand of packs of hair oil

small pack

mediumpack

large pack

12. Which cream u prefer to use?

The reaction of people towards various CREAM brands can be tabulated in the

following manner:

Brands PondsFair &

lovelyAyur Others


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 isfollowed by, PONDs, another product of HUL, which holds 28% of the market

share. This is followed by, other brands (EXCEPT, PONDs, FAIR & LOVELY &


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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.


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?

The reaction of people towards various COFFEE brands can be tabulated in the

following manner:

Brands Bru Nestle Nescafe Others



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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 toughcompetition. 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.


bar graph:

0

5

10

15

20

25

30

35

percenatge

brands

demand of coffee

bru

nestle

nescafe

others

Data analysis

Demographic profile of respondents

Gender

Fig 1Demographic data for genders


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Age

Fig .2. Demographic data considering different age groups

0

50

100

Below 1818-25 26-35 36-50Above 51

6

57

33

3 1

Percentage

Occupation

Fig. 3. Demographic data considering their occupations

From the graph its clear that most of the impulse buying is being done by

students which compromises of 51% of total 100 respondents 23% is for the

services providing people and 20 % to the business oriented person and at last

only 6% comprises of house wifes.

Organised Retail


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Major Players in Organised Retail

Types of Purchases Made in Organized Retail

Top 10 Reasons Why Consumers Prefer Organized Retail

Consumer Rating on Various Criteria

Consumer Rating on Various Criteria


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To Sum it Up

Consumers prefer organized retail outlets for FMCG products that are

bought in large quantities and for a larger duration of time. They also

perceive it as a family outing and are drawn towards it due to its

convenience, variety and special offers.

Unorganised Retail

What Do Consumers Buy from Unorganized Retail


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Top 10 Reasons Why Customers Prefer Unorganized Retail

Consumer Ratings for Various Criteria


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Aspects That Consumers dont like about Unorganised Retail

To Sum it up

Consumers prefer unorganized retail outlets for items that have low

shelf life and are consumed on a daily basis (such as vegetables).

Logistical convenience and a sense of personalization are key drivers

for consumers to continue shopping at unorganized retail outlets.

Further Scope

Conduct Consumer Decision Process, Buying Behavior, Impulse

Buying.

Division of FMCG sector into Consumer Durables , Non Durables

and Groceries

Large sample size for generalization of findings.

Conclusions


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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 & creams category. HULs products

are mainly in demand, because they provide these products in

different packs. They consider the fact that rural consumers do not

have that much money to be spent on these products. 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 finallycreates BRAND LOYALTY. In case of BISCUITS, 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.

In the case of TOOTH PASTES, COLGATE PALMOLIVE

holds a major market share. Consumers are very concerned about


57/67

their health, so if any product suits them they prefer sticking to that

product. And this product is also available in various packs, so rural

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.

Suggestions & recommendations

The researcher 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, its 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 competitors.

4. They should try to reach as many people as possible.


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5. For the organizations that are not much popular amongst the

consumers, should adopt Sales Promotion, as their marketing

strategies.

6. Application of 4As has also become an important task for all

the organizations.

(*4A= Availability, Affordability, Acceptability, Awareness)

References

1. Kearney, A T, CII Report, (2000)

2. Purba basu, research on living style of rural consumers,(2004), pg. no. 5-8.

3. Tognatta Pradeep, economic growth on agriculture sector,(2003), pg no. 6-10.


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4. Aithal K Rajesh, importance & growth of rural markets,(2004), pg no. 8-12.

5. Center for Monitoring Indian Economy (CMIE)6. Statistical Outline of India (2001-02), NCAER7. National Council of Applied Economic Research (NCAER)

8. Indian readership survey (IRS)

9. http://www.upgov.nic.in/upinfo/census01/cen01-1.htm10. Lucknow Development Authority

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

12. http://www.naukrihub.com/india/fmcg/

13. http://www.naukrihub.com/india/fmcg/consumer-class/

14. http://www.naukrihub.com/india/fmcg/consumer-class/income/

15. http://www.naukrihub.com/india/fmcg/consumer-class/socio-economic/

16. http://www.naukrihub.com/india/fmcg/consumer-class/age/

17. http://www.naukrihub.com/india/fmcg/consumer-class/geography/
http://www.naukrihub.com/india/fmcg/overview/http://www.naukrihub.com/india/fmcg/overview/http://www.naukrihub.com/india/fmcg/http://www.naukrihub.com/india/fmcg/consumer-class/http://www.naukrihub.com/india/fmcg/consumer-%20class/income/http://www.naukrihub.com/india/fmcg/consumer-%20class/income/http://www.naukrihub.com/india/fmcg/consumer-class/socio-economic/http://www.naukrihub.com/india/fmcg/consumer-class/socio-economic/http://www.naukrihub.com/india/fmcg/consumer-class/age/http://www.naukrihub.com/india/fmcg/consumer-class/geography/http://www.naukrihub.com/india/fmcg/consumer-class/geography/http://www.naukrihub.com/india/fmcg/overview/http://www.naukrihub.com/india/fmcg/http://www.naukrihub.com/india/fmcg/consumer-class/http://www.naukrihub.com/india/fmcg/consumer-%20class/income/http://www.naukrihub.com/india/fmcg/consumer-%20class/income/http://www.naukrihub.com/india/fmcg/consumer-class/socio-economic/http://www.naukrihub.com/india/fmcg/consumer-class/socio-economic/http://www.naukrihub.com/india/fmcg/consumer-class/age/http://www.naukrihub.com/india/fmcg/consumer-class/geography/http://www.naukrihub.com/india/fmcg/consumer-class/geography/


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Questionnaire

1. name:

2. occupation:3. monthly salary:

a. less than 10,000b. 10,000 25,000c. 25,000 50,000d. More than 50,000

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. singleb. family pack ( 3 in 1)

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 pack

c. large pack

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

11. which pack u prefer to use?


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a. small packb. medium packc. family pack

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

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

14. which shampoo u prefer to use?a. clinic plusb. sunsilkc. head & shouldersd. others

15. which pack u prefer to use?

a. sachetb. small packc. medium packd. 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 amlac. dabur vatikad. others

18. which pack u prefer to use?a. small packb. medium pack


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c. large pack

19. which cream u prefer to use?a. ponds

b. fair & lovelyc. ayurd. others

20. which coffee u prefer to use?a. brub. nestlec. Nescafed. others

CONSUMER SURVEY QUESTIONNAIRE RETAIL CHAINS

The objective of this survey is to collect tangible information about shopping in Organized and

Unorganized Retail Sector. This questionnaire is being administered to people like you who have

visited and bought products in Retail Stores and Kiryana Store. Please let us know your spontaneous

response to the questions that pertain to your shopping experience in Retail Chains. All information

provided by you shall be kept confidential and we shall only be publishing the outcomes. Please

provide us your unbiased and frank opinions.


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1. What is your monthly shopping budget?

0-2K 2-5K 5-10K 10-20K 20-50K >50K

2. What do you shop, how often and from where?

Vegetables

Daily WeeklyBimonthly

Monthly

Organized Retail

Unorganized Retail

Grocery (Dal, Rice, Wheat)


Monthly

Organized Retail

Unorganized Retail

FMCG(Biscuits, Detergents,Soaps)


Monthly

Organized Retail

Unorganized Retail

Oil


Monthly

Organized Retail

Unorganized Retail

Garments/Clothes


Monthly

Organized Retail

Unorganized Retail

Utensils

Daily Weekly

BimonthlyMonthly

Organized Retail

Unorganized Retail

3. Which retail chains do you visit often?

Big Bazaar Six to Ten

Shoppers Stop Reliance Fresh

Westside Big Apple

Landmark More

Vishal Megamart Spencers


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Any other (Please specify) ________________________________

4. Where do you shop for your daily needs?

Retail Store Kiryana Store

5. Where do you shop for your bulk needs/monthly needs ?

Retail Store Kiryana Store

6. Does the environment of Retail Shop affect your buying behavior?

Yes

7. Why do you prefer to go for Organized Retail formats?

Price is Less Near House Everything atone Place

Good Service Good Quality Ambience

LongRelationship

Good Offers Large Variety

Aspiration Self Service Faster(takes lesstime)

OverallExperience

8. How much time do you spend on shopping on every visit in RetailStore?

0-30 Minutes 30-60 Minutes 1-2 Hour 2-3 Hours

3-4 Hours 4-5 Hours


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10. Kindly rate the below of an organized retail and unorganizedretail based upon your preference?

Parameter Organized Retail(rate)(1-Poor, 5- Best)

Un OrganizedRetail(rate)(1-Poor, 5- Best)

Price 1 2 3 45

1 2 3 45

Quality 1 2 3 45

1 2 3 45

Variety 1 2 3 45

1 2 3 45

Location 1 2 3 45

1 2 3 45

Service 1 2 3 45

1 2 3 45

Everything at onePlace

1 2 3 45

1 2 3 45

Offers 1 2 3 45

1 2 3 45

Relationship 1 2 3 45

1 2 3 45

Ambience 1 2 3 45

1 2 3 45

Home Delivery 1 2 3 45

1 2 3 45

Faster 1 2 3 45

1 2 3 45

11. Which of these factors affect your impulse buying behavior

at Retail Store ?


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1. Name: ______________________________________________________

2. Age: 15-20 20-30 30-40

40-50 50 & above

3. Occupation: Student Govt. Employee Private Employee

Businessman Any other (Pls specify) _______________

4. Income group: 5k-10k 10k-20k 20k-30k 30k-40k

40k-50k 50k & above

5. Education: Student Graduate Post-Graduate

MBA Any other (Pls specify) ___________________

6. Number of Family Dependants: Nil One Two Five

Any other (Pls specify)

7. Telephone Number / E-mail:___________________________________________

________________________________ Thank You______________________________

consumer behavior in fmcg products

Documents