taste,preference,habits fmcg

8/3/2019 Taste,Preference,Habits FMCG

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Consumer is the king

Products made on consumer preference

Consumer demand varies

Tastes, preferences and habits change

from person to person.



PRICE

CHANGING NEEDS

INCOME

TASTE

RURAL MARKET

HABIT

CONSUMER’S EXPECTATIONS

TARGET AUDIENCE

ADVERTISING



An important determinant.

Individual’s demand for a commodity depends

upon its price.

Higher the price, lower the demand and vice

versa.



Needs of consumer changes

from time to time.

For e.g. We buy medicines only

when we are sick.

We buy raincoats and gum

boots only in rainy season or

we buy sweaters and shawlsonly during winters.

Nowadays people shop in

malls rather than regular shops.



The disposable income of an individual also

determines demand. The higher the income, more is the quantity of

goods demanded and (vice versa)



Around 60% of population in India live in

villages. Their needs and demands differ from that of

the people in town or cities.



The demand for a commodity would also

depend upon the consumers’ habit.

When there are changes in habits, the demand

for a commodity would increase or decrease

even if the price does not change.



Consumers’

expectation of future

rise or fall in price of a commodity.

Due to this demand

in current periodincreases or decreases.



Some consumers areloyal towardspurchase of goods of

certain brands only. The targeted

consumers usually belong to a certain

group or certain age.



Modern day advertisements have tremendous influence

on the consumers’ choice in case of shampoos,

perfumes, soaps, toothpastes, biscuits etc. Advertising plays an important role in influencing the

demand pattern of children’s population.



Meaning –

Sold in large

quantity Relatively small

Products

Cumulative profit

is large



Meaning –

Sold in small

quantity Small and largeProducts

Profit fluctuatesduring the on-season and off-

season.



Cola war

Pepsi.Co’s Diet Pepsi

Coca cola’s Diet Coke

New Coke

Classic coke after new coke



Taste: Flavor

Preference: Health and sweetness

Habit: Cultural institution in south



Dairy milk (Flagship brand)

Brands Consumer convenience

Innovations

Backlash



Taste: Pure taste, smooth and

delicious

Preference: Safety, appealing advertisement by Ogilvy and Mather

Habits: Convenience and readily accessible



Disposable Shaving Systems

97% of lower end market uses DESB.

(Double- Edged Safety Blades) 7 O’clock, SuperMax, Wilkinson are popular

and convincing in lower-end market.

50% barbers and 50% self-shavers.



Barbers do not cater for long lasting blades.

They constitute 50 % of lower end market.

Indians pay premium price only for premiumproduct.

Indians are used to using DESB than shaving

system.



Baby-on-Board

Accessories

Adult’s Only



Taste: Mother-and-child products

Preference: Convenience

Habits: Buy clothes from local shops

or other shops.



Off- season strategy

The horror film story for promotion

Successful in selling 50% more in off-

season of its target market



Purchase of Air Conditioners during

September, October and Summers.

Indian habit of Cost Cutting More purchase during off-season due to

discount.

Increase in sales volume.



CEAT entering two-wheeler tyres.

Strategically formed supply alliances with - Hero

Honda, TVS Motors and Kinetic Motors.

Sold off its stake in the joint venture with South Asia Tyres to Goodyear.

Focus on the OEMs as half of the 20 lakh units of the

two-wheeler tyres



Large market for Two-wheeler tyres.

Used to concentrate on radial tyres.

Tough competition for CEAT

taste,preference,habits fmcg

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