RESEARCH REPORT ON EFFECT THE BRANDING ON CONSUMER OF FMCG AND DURABLE GOODS

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CHAPTER-1 INTRODUCTION

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Section-A

INTRODUCTION TO FMCG: As we are approaching to the twenty first century the FMCG product market is growing like a money plant in this world. Not only companies are gaining huge profit from these product sources but these products are also one of the main ingredients in our day today life. So the customer has to think and decide on the products which he is going to purchase because of the availability of the choices replicates variants in every section of the products.

Now a days customer has a wide variety of choice while selecting FMCG, producer has to add additional values to the product that the product continues its presence in the market. Different factor governing the customer based on different product category like milk products, beverages, prepared dishes, Chocolates & Confectionaries, personal care and Fabric care etc.

This minor project consist of the response of different age group respondents who specifies their predetermined factors which drives them while purchasing the factors which drive them to buy the products are as under, Price, Availability, Brand name, Quantity, Quality, Packing, advertisement.

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Through this we can understand that the customers in the current scenario not only purchase the product based on the one quality that it contains. But they carefully analyze it and then go for the purchase. So knowing the customers attitude is important and what are the factors they considered when purchasing a product So by this project we can come to know the effect of branding on consumer while purchasing a FMCG product & Durable goods.

FMGC-Fast moving consumable goods Meaning: A type of good that is consume every day by the average consumer. The goods that comprise in this category are ones that need to be replaced frequently, compared to those that are usable for extended periods of time. FMCG refers to those retail goods that generally replaced or fully used up over a short period of days, weeks or months & within one year.

Main characteristics of FMCGs: From the customers perspective : a) Frequent purchase. b) Low in investment (price). c) Low in involvement (Little or no effort to choose the item).

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From the marketers angle : a) High volume. b) Low margin. c) Extensive distribution network. d) High Stock turnover.

BRANDING: American marketing Association defines a brand as, a name, term, symbol or design or a combination of them which is intended to identify the goods or services of one seller and to differentiate them from those of the competitors.

Functions/Objects of Branding: 1. It helps in product identification and gives distinctive to a product. 2. Indirectly, it denotes quality or standard of product. 3. It estimates imitation. 4. It helps in advertising and packaging activities. 5. It helps in price differentiation of a product. 6. It facilitates in making a choice. 7. It helps in create and sustain brand loyalty to a particular product. 8. It is essential for competition, because without a means for identification, there is no way of making choice.

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Advantage of Brand Name & Advantages to manufacturers:

1) Product differentiation

Product differentiation by branding enables the manufacturers to establish their own price and eliminate price competition to some extent.

2) Brand Image

The seller can build up a bright image of his product around the brand. A brand image id built up through the years by quality of products produced, services offered and the companys reputation, policies and marketing efforts.

3) Creation of market

Ever increasing competition leads to branding of product by a manufacturer to face competition and create exclusive market for the product.

4) Advertisement and publicity

Branding helps advertising, display and sales promotion, branding and packing go hand to hand.

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5) Brand Preference Branding not only gives separate identity and easy recognition to the product. But it also creates special brand preference and brand loyalty.

6) Brand patronage Branding helps advertising, display and sales promotion, branding and packaging go hand to hand.

7) Expanding the product mix

Many successful multi product firms today began with the single product whose success created on umbrella which additional product could be launched with the less risk.

Advantages to customer: 1. A customer has an assurance of quality and consistency in the product attributes being offered. 2. Certain brands provide status and psychological satisfaction to the consumers. 3. There is considerable saving of time and energy in shopping for goods. 4. Rapid sales turnover assures fresh due to frequent replacement of stock with the retailer.
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CONSUMER BEHAVIOUR We start with the definition of consumer Market. A consumer Market can be defined as all the individuals and households who buy goods and services for personal consumption can be said to be part of the consumer market. Consumer Behavior is defined as All psychological, social and physical of all potential consumers as they become aware of, evaluate, purchase, consume and tell others about products and services

Nature and Characteristics of Indian consumers Philip kotler has rightly said Market may be defined as a relationship between consumer and producer occurring at a time place and at a value mutually agreeable and acceptable to the concerned parties. It is the responsibility of the marketing system to discover and serve the market demand. It provides the vital link in connecting production (supply) and consumption that will ensure a desired standard of living in an economy. It is important for marketers of Indian firms also to understand the Indian market and its characteristics so as enable them to take crucial marketing decisions related to products, price, promotion and distribution. This will help in matching company products with consumer needs.

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Nature and Characteristics of Indian consumer 1. 2. 3. 4. 5. 6. Geography Population Urban-Rural composition Sex composition Age factor Literacy level

7. Income level 8. Linguistic diversity 9. Religion 10. Dress, food, habits and festival

Geography: India ranks seventh in the world in terms of size. There are also various regions namely great mountain zone, Indo Gangetic plain, the desert regions. Climate in terms of temperature is also varied. Temperature in extreme north is low as compared to the south and north regions. Population: India is one of the worlds highly populated countries. Further, the distribution of the population is also unequally divided amongst the states of India. Related to density of population also there is diversity among the different regions/states depending upon

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topography, climate and level of economic development. Knowledge about the density of population will help the marketing executives in developing appropriate priorities and alternative marketing strategies.

Urban-Rural Composition: About 80% of Indias population is rural whereas 20% is urban. However, post independence period has seen a gradual shift of people towards urbanization. During the period, the urban population increased almost four times whereas rural population could only double itself. This rate of increase in urban population has been more pronounced in the states of Gujarat and Maharashtra mainly. This shift towards urbanization is mainly due to seeking of better job prospects, higher income and consequently better standard of living. This urban-rural feature will have a bearing on the consumption pattern of the consumers.

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Sex Composition: With increasing education, the role of women has undergone significant changes. The profile of women has changed from that of a housewife to a working woman. Today, the urban housewife is an active partner and plays a major role in the purchase decisions. In India the sex composition in most the states consists of more males than females except in Kerala where it is the other way round. This knowledge of sex composition will help the marketer to understand the market better and work out strategies to design suitable promotional techniques for each gender.

Age: This is another important factor to be kept in mind while segmenting the market so that suitable marketing strategies may be developed. On account of wide exposure to various communication media like television, private channels, magazines, etc., children are also participating in buying decisions related to their clothes, toys, books, books, etc. An analysis of the Indian consumer will not be complete without a mention of the urban teenagers and youth market. They are more modern, careless for tradition and religion. They have an inclination towards the western culture and are quick to seek novelties new fashions. Literacy Level: Depending upon the level of literacy amongst the target consumers, the marketers will have to design a suitable communication mix for promotion of a product or service.
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According to 1991 census, the nations average literacy rate is 52.11 Crore literacy among males was 63.86% while among females it was 39.42%. With the efforts of government continuing to bring down the level of illiteracy in the country, there should be an increase in the level of literate consumers in the coming years. Thus the literacy level goes a long way in shaping consumer demand by influencing the tastes, Living standards and aspirations of people.

Income Level: Income level, (money to spend or purchasing power) purchasing power or income has a direct effect on the potential demand for the product. Income levels can be analyzed on the basis of two income concepts, namely (a) disposable income(income minus taxes), (b) discretionary income, which is the income left after paying taxes and meeting expenses related to food clothing shelter and the other necessary items. Income, credit and assets are objective elements of our purchasing power. However, economic ability must be combined with willingness to buy i.e., the ability and willingness to spend the discretionary income will have a direct effect on the potential demand of the products. Purchasing power depends on the income of the target market. Thus, depending upon the income of its target market, the company will decide on the suitable marketing mix elements to be adopted especially related to pricing of the product.

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SECTION-B INDUSTRY PROFILE In this competitive economy FMCG market is having significant demand in low to middle income consumers and above all highly price sensitive.

It consists of goods, which are directly consumable, packaged and branded. The FMCG in India has undergone extreme changes following economic Liberalization. Qualitative and quantitative restrictions are under the new trade policy. India stands as third largest industry in FMCG industry food and processed foods, personal care products and dental products. Insecticides, liquor, batteries are also included in this category.

Progressive reduction in excise duties on major FMCG product categories, rapid extensions of media reach especially TV, considerable caring of licensing restrictions are some of licensing restrictions are some of major drives of the India FMCG market in the recent past.

The industry contributes to the exchequer of income tax and central excise to the extent of 95% and 16% respectively of the total collection employment both direct and indirect and in terms of 994 data, it provided 6% of the total 9.1 million. The Industry contributes to the exchequer by way of income tax and central excise to the extent of 95% and 16% respectively of the total collection. It provides considerable employment both
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direct and indirect and in terms of the 994 data, it provided 6% of the total 9.1 million. The industry has a significant rural bias and accounts for 56% of the total rural Demand.

Expenditure on consumer durable like washing machines, refrigerators and color televisions has shown an impressive growth during the 1990s. The rural share of the market for FMCG had been growing steadily over the last few years, from 54.24% in 1989-90 to 56.26% in 1992-93 and to 57.9% in 1995-96. This share went up to 59.3% in 1995-96. This share went up to 59.3% in 1997-98.

Industry Classification:

The FMCG industry is volume driven & is characterized by low margins. The products are branded & backed by marketing, heavy advertising, slick packaging & strong distribution networks. The FMCG segment can be classified under the premium segment & popular segment; the premium segment caters mostly to the higher/upper middle class which is not much price sensitive apart from being brand conscious. The price sensitive popular or mass segment consists of consumers belonging to the semi-urban or rural areas who are not particularly brand conscious. Products sold in the popular segment have considerably lower prices than their premium counterparts.

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THE FLIGHT WHICH FAILED TO TAKE OFF

Gujarat cooperative milk marketing federation limited (Amul) Amul is the third player in the chocolate market in India. The brand doesnt have any international lineage and is miniscule in terms of market share in chocolates and compared to the two other players Cadburys and nestle. Amul had an extremely focused positioning of a gift for someone you love albeit not target to a single group however Amul failed to capitalize on it seemingly due to the following reasons.

a. Chocolates have never been Amuls main products and hence there was lack of organizational commitment. The company has never really supported or pushed its chocolates. This reflects on the drastic cutback on advertisement expenditure for its chocolates which has negatively affected its top of the mind awareness level b. The company has enjoyed a high customer equity and pulls in butter and so it offered a very low retailer margin of 3.1 % as against the industry average of around 7-8 % Amul tried the same technique in chocolates too. However since it was neither leader nor enjoyed a customer pull like in butter the company got very little support for its chocolates.
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c. Amul chocolates have shown a very limited product differentiation and have not really given any important additional benefit to the consumers. The product line also suffered. d. in comparison to the portfolios of the competitor Cadbury and nestles. Its only strength was its low price

Following are the major brands of

Amul

Amul premium Milk

Amul badam bar Amul orange Amul fruit and nut Amul crisp

Inspired by the kaira Union, similar unions were formed in other parts of Gujarat. In 1973, these unions merged to form the Gujarat Cooperative Milk Marketing Federation Limited (GCMMFL). What started with a cooperative movement in Anand and about 250 litters of milk per day in the 1940s, gradually expanded to more than a thousand villages

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and 6 million liters of milk and milk products collected, processed and distributed across the country by 2004. The logistics adopted by AMUL in collecting more than 6 million liters of milk per day from 10,755 village cooperative societies spread throughout Gujarat and then processing it to produce the final packaged milk and milk products, set new standards in logistics management in India. The AMUL pattern of cooperative farming represented a system that was collectively owned , operated and controlled by the farmers. The three tiers involved in the AMUL model of dairy farming included the village societies , the district milk union and the milk federation. The traditional model, where the processing and marketing of dairy products were carried out by middlemen, leading to major diversion of profits, gave way to a better system of distribution and profit management for the producer. The village society of milk producers was the smallest and the basic unit under the AMUL pattern. The village Dairy Cooperative Society(DCS) was a Voluntary association of milk producers, who wished to market their milk collectively. Any producer could be a member of the DCS by paying an entrance fee and buying a share of the society. In addition, every member was committed to sell surplus milk only to the cooperative after meeting their family requirements. Each DCS had a milk collection center, where the villagers deposited their surplus production every morning and evening. The price of milk was fixed according to the quality of the produce, and the payments were made to the farmers accordingly. The society made a profit by selling milk to the district milk union, and at the end of each year, a portion of the profit was used to pay patronage bonus to the members based on the quality of milk they produced. The DCS

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was formed under the guidance of a supervisor from the milk union and the day-to-day operation of the cooperative was governed by a committee of nine members with a chairman elected from among themselves.

The District Cooperative Milk Products Union was owned by the village cooperative societies in the district. The milk bought the milk collected in different village societies and used their hired vehicles to transport the milk from the collection centres to the chilling/processing plants. These unions also provided additional services to the DCSs and their members, in terms of value-added technical inputs like veterinary and animal health care, artificial insemination, balanced cattle feed and fodder and training and consultation facilities in a committed effort to increase milk production. They derived profits from selling the processed milk to the state federation. The state fedration, known as GCMMFL, was responsible for processing and marketing of milk products across India. Supported by professionals management systems, the AMUL model symbolized a primary producers right to decide his own business policy by being an integral part of the supply chain. In this capacity of a shareholder of the village societies, he not only shared the profits of the business, but also received valuable inputs and technical services, which he individually could

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COCA COLA

Coca-Cola is a cola (a type of carbonated soft drink) sold in stores, restaurants and vending machines in more than 200 countries. It is produced by The Coca-Cola Company and is often referred to simply as Coke. Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman As a Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft drink market throughout the 20th century.

The company actually produces concentrate, which is then sold to various licensed CocaCola bottlers throughout the world. The bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola in cans and bottles to retail stores and vending machines. Such bottlers include Coca-Cola Enterprises, which is the largest single CocaCola bottler in North America and Western Europe. The Coca-Cola Company also sells concentrate for fountain sales to major restaurants and food service distributors.

The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name. The most common of these is Diet Coke, which has become a major diet cola. However, others exist, including Diet Coke Caffeine-Free, Cherry Coke, Coca-Cola Zero, Vanilla Coke and special editions with lemon and with lime and even with coffee
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The World of Coca-Cola opened on the Las Vegas Strip in the summer of 1997. It houses a living history museum of Coca-Cola history, a fountain and a digital storytelling theater which is the emotional heart of the attraction. The theater features live storytellers presenting stories created by Dana Ashley Productions. There are seven different shows which run fourteen hours a day. Outside the theater is a place for visitors to tell their own stories about their relationship with the world's most recognized brand. In 1969, The Coca Cola Company and its advertising agency, McCann-Erickson, ended their popular "Things Go Better with Coke" campaign, replacing it with a campaign that centered on the slogan "It's the Real Thing." Beginning with a hit song, the new campaign featured what proved to be one of the most popular ads ever created.

It was a prohibition law, enacted in Atlanta in 1886, that persuaded physician and chemist Dr. John Smith Pemberton to rename and rewrite the formula for his popular nerve tonic, stimulant and headache remedy, "Pemberton's French Wine Coca," sold at that time by most, if not all, of the city's druggists.

So when the new Coca-Cola debuted later that year--still possessing "the valuable tonic and nerve stimulant properties of the coca plant and cola nuts," yet sweetened with sugar instead of wine--Pemberton advertised it not only as a "delicious, exhilarating, refreshing and invigorating" soda-fountain beverage but also as the ideal "temperance drink."

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Though Pemberton died just two years later--five months, in fact, after his March 24, 1888, filing for incorporation of the first Coca-Cola Co.--the trademark he and his partners created more than one hundred years ago can claim wider recognition today than that of any other brand in the world.

And the Coca-Cola beverage, whose unit sales totaled a mere 3,200 servings in 1886 ("nine drinks per day" based on the twenty-five gallons of syrup sold to drugstores by Pemberton Chemical Co.), is today called the world's most popular soft drink--accounting for billions of servings at restaurants in 195 countries.

Such is the commercial legacy of a onetime Confederate lieutenant colonel who earned his medical degree at the age of nineteen, who served on the first Georgia pharmacy licensing board, who set up a top-rated laboratory for chemical analysis and manufacturing, and who, in his dozen-and-a-half years in Atlanta, established eighteen business ventures--including one, the Coca-Cola Co., which now can boast 1995 sales in excess of $15 billion.

Notwithstanding

Pemberton's

numerous

professional

and

entrepreneurial

accomplishments, however, Coca-Cola historians characterize him as "a local pharmacist" who concocted the world's most craved soft-drink syrup in a three-legged brass pot in his backyard.

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"Coca-Cola was not the creation of an inept, small-time corner druggist," said archivist Monroe Martin King, who has spent twenty-one years researching the life of John Pemberton--from his childhood in Rome, Ga., to his college days in Macon to his enterprising years in Atlanta.

"He's occasionally portrayed as a wandering medicine man," King added. "But Dr. Pemberton worked in a fully outfitted laboratory and claimed to manufacture every chemical and pharmaceutical preparation used in the arts and sciences."

According to King, Pemberton's analytical laboratory became the first state-run facility to conduct tests of soil and crop chemicals. It continues to be operated by the Georgia Department of Agriculture.

King further noted that Pemberton, who practiced medicine and surgery as a young man and later became a trustee of the former Emory University School of Medicine, earned a solid reputation for his skill in chemistry and his work in medical reform.

But King feels the Coca-Cola Co. of today drew an accurate conclusion when it stated: "Dr. Pemberton never fully realized the potential of the beverage he created."
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Indeed, while Pemberton gets credit for the formula behind the Coca-Cola taste, he has had capable successors in Asia Candler, Robert Woodruff and Roberto Goizueta--men who built the product and the company into an icon of pleasure and profit.

According to King, Pemberton actually remained more interested in expanding the market for French Wine Coca, a product based on the formula for another extremely popular coca-based beverage, Vim Mariana, which had been developed in Paris in 1863.

So when Atlanta's prohibition act was repealed in 1887, only a year after its passage, Pemberton resumed the manufacture and sale of his original patent medicine, leaving his son Charles to oversee the production of Coca-Cola.

Although Pemberton may have envisioned a future for his soft-drink creation--enticing six Atlanta businessmen to invest in the start-up Coca-Cola enterprise--for reasons that remain a mystery he soon began selling his interest in the formula.

"Dr. Pemberton . . . must have believed that it had little value and no potential assurance of substantial success," said Charles Candler in a 1953 biographical sketch about his father, titled "Asia Griggs Candler, Coca-Cola and Emory College."
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Asa Candler, who, according to King, had worked for Pemberton as early as 1872, wound up, after a series of transactions, controlling the company within a short time of Pemberton's death. By 1891 he owned all of the Coca-Cola business.

Charles Candler relates that one of his father's first missions was to change the original Pemberton formula in order "to improve the taste of the product, to ensure its uniformity and its stability."

According to Asia Candler's son, Candler hired Pemberton's former partner, Frank Robinson. The two of them, "by adding essential ingredients and taking others out . . . perfected the formula," Charles Candler said.

In fact, it was Robinson who created the Coca-Cola name and script logo, convincing the company to tie the classic slogan "delicious and refreshing" into all future advertising. After the turn of the century, when federal and state authorities began writing regulations to ban the sale of coca products because of their supposed contamination with the drug cocaine, Coca-Cola lawyers argued strenuously that their syrup contained only a minuscule flavor extract of the coca leaf.

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Coca-Cola attorneys also were called to battle against competitors who called the product name a misrepresentation if, as argued, its principal ingredients were neither the coca leaf nor the kola nut--a source of caffeine that made the early beverage useful in healing headaches.

Despite such obstacles, Candler's prowess as a merchandiser had driven the widely promoted Coca-Cola beverage into "every state and territory in the United States" by 1895.

Considered a pioneer in coupon promotions, Candler offered two gallons of Coca-Cola syrup "to any retailer or soda fountain man" who would dispense 128 free servings (a gallon's worth) of the beverage to customers who showed up with one of his cards.

Not only was syrup manufacturing facilities opening in such cities as Dallas, Chicago and Los Angeles, but a network of bottlers was being created nationwide as well.

Under Woodruff's tenure, from 1923 until 1981, Coca-Cola rose from national to international dominance--a move accompanied by the early, explosive growth of the bottled beverage.

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By 1928 bottled sales had eclipsed fountain sales, thanks to the pioneering introduction of a carton now popularly called the six-pack. The following year the company introduced metal open-top coolers. Then in 1933 at the Chicago World Fair automatic fountain dispensers made their debut.

Having expanded the brand into forty-four countries by the outbreak of World War II, Woodruff, within fifteen years of the war's end, had managed to double that number. "Now the saying is you have to be global," said Goizueta, Coca-Cola's current chairman and chief executive. "We were global when global wasn't cool."

Two decades later, when Coca-Cola's board elected Goizueta to the post of chairman and chief executive, the company was embarked on a financial mission--to become one of the best-performing corporations in America.

Average annual fountain-sales growth under Goizueta has continued to surge. And despite consumer uproar over the company's attempted Coca-Cola reformulation in 1985, the introduction of Diet Coke in 1982 was hailed as the most successful product launch of the past decade.

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Yet none of the company's strides in marketing, international expansion, product innovation or profit growth could have happened had it not been for Coca-Cola's inventor, John Pemberton.

Atlanta druggists--Asia Candler among them--closed their stores on the day of Pemberton's funeral "and attended the services in mass as a tribute of respect," according to newspaper records from that era.

"On that day," declared archivist Monroe King, "not one drop of Coca-Cola was dispensed in the entire city."

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Lifebuoy (soap)

Lifebuoy is a brand of soap containing phenol originally marketed by Lever Brothers in England beginning in 1895. Popular for over 100 years, it is still available in the United States, through specialty shops that import it through Jupiter Imports (UK) in England. Though Lifebuoy has gone out of production in the U.S. and the UK, it is still being mass produced by Unilever in Cyprus (for the UK, EU and USA). In India, it is the leading value brand there as well as in some other South Asian and South East Asian countries like Pakistan, Sri Lanka, Bangladesh and Indonesia.[1]

When the Philadelphia Phillies played at the Baker Bowl during the 1920s, an outfield wall advertisement for Lifebuoy stated, "The Phillies use Lifebuoy". One night a graffiti artist sneaked in and added to the ad, "And they still stink". Variations of the joke were also employed by detractors of other losing teams.

The term "B.O.", short for "body odor", was coined by Lifebuoy for an advertising campaign. The Lifebuoy radio ad, parodied by several Warner Brothers' Looney Tunes cartoons, used a foghorn-type sound to create the "B.O." sound.

Lifebuoy's goal is to provide affordable and accessible hygiene and health solutions that enable people to lead a life without fear of hygiene anxieties and health consequences.

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Improving health & hygiene for over 100 years

Lifebuoy is one of Unilever's oldest brands, a brand that was truly 'global' before the term 'global brand' was invented. Lifebuoy Royal Disinfectant Soap was launched in 1894 as an affordable new product in the UK, to support people in their quest for better personal hygiene. Soon after launch, Lifebuoy soap travelled across the world, reaching countries such as India, where even today it is still the market leading brand.

Lifebuoy saves lives

Consistent in Lifebuoy's 110+ year history has been its championing of health through hygiene. The brand's core promise of protection and a commitment to support life through unbeatable protection is at the heart of the brand name itself Lifebuoy, the guarantee of protection when you are threatened. For example, a 1930's campaign in the US was titled 'Clean hands help guard health', encouraging the use of Lifebuoy soap to kill the germs on hands that can cause health issues. A similar campaign continues today, with Lifebuoy hygiene education programmes ongoing in countries including India, Bangladesh, Pakistan, Sri Lanka, Indonesia and Vietnam.

A helping hand

According to the World Health Organisation, diarrhoea is the single largest cause of preventable death, killing 2.2 million people every year. In 2003, it killed 600 000 children aged under five in India alone. It's been estimated that if everyone washed their hands properly at key times during the day, up to half of all childhood deaths from diarrhoea more than one million children could be avoided.
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The Original Red Lifebuoy Soap (sometimes called Carbolic Soap)is one of the most famous soaps in the world. It has been on the market for over 100 years. Red Lifebuoy Soap is still manufactured in many countries by Unilever and its subsidiaries. In most of these countries Lifebuoy soap is the market leader.

Our Original Red Lifebuoy Soap is a very clean, healthy, carbolic soap. It is a pure anti-bacterial soap with excellent skin cleaning and cleansing properties and is suitable for the whole body. These days, this is essential with MRSA and all the superbugs, e-coli, salmonella, and other viruses around. You cannot have too much protection.

Lifebuoy Soap also used to be available in the White Toilet and the Red Lifebuoy Household Soap Twin Pack versions. These have now been discontinued. Now there is only the Red Lifebuoy Soap available, (used to be known as the Toilet Soap version.) The original Red Lifebuoy Soap available from us is manufactured by Unilever PMT to the highest standards and quality. It meets the latest rigorous standards set by the EU in both formulation and packaging. We are sole supplies to the UK, Europe, North America and other countries where the customer expects the carbolic red Lifebuoy Soap with the aroma and quality of the original red Lifebuoy Our Lifebuoy Soap. is the only Red Lifebuoy Carbolic Soap manufactured now with the carbolic, healthy aroma. All other Lifebuoy Soaps in the world have been reformulated with more modern ingredients, to smell sweeter and repackaged. My customers expect the carbolic original and this is what we are supplying.
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As reported above, not all Red Lifebuoy Soap soap produced around the world is the same, however all my customers agree that the Red Lifebuoy Soap available from Jupiter Imports (UK) is without doubt the original Red Lifebuoy Carbolic Soap We just dont want this unique soap to disappear from the market. For more information and to order, please visit our Lifebuoy Products section. Note: We have cases of Red Lifebuoy Soap (144 x 85g bars) available from New York, please ask for our special prices from there There is a special offer to our European Customers through the Post Office small packet (under 2kg) postal rates 20 x 85g bars of Red Lifebuoy Soap delivered anywhere in Europe for 45 Euros. This price includes all VAT (taxes), Packing and Postal costs. This is the minimum order we will dispatch inside the EU, for larger amounts, please ask. Contact us for details. .

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Dabur India Limited

Dabur India Limited is the fourth largest FMCG Company in India with interests in Health Care, Personal Care and Food Products. It is most famous for Dabur Chyawanprash and Hajmola.

Dabur had a turnover of approximately Rs. 19 billion (approx. US$ 420 million) during the fiscal year 2005-2006, with brands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola & Real. The company's growth rate rose from 10% to 40%. The expected growth rate for two years was two-fold. Dabur operates in more than 5 countries and distributes its products worldwide. The company was founded by Dr. S. K. Burman in 1884 as a small pharmacy in Calcutta (now Kolkata), West Bengal, India, and is now led by his great-grandson V.C. Burman. The company headquarters are in Ghaziabad, Uttar Pradesh, India, near the Indian capital of New Delhi, where it is registered. Dabur's manufacturing operations are in India, Africa and the United Arab Emirates.

The company, through Dabur Pharma Ltd. does toxicology tests and markets ayurvedic medicines in a scientific manner. They have researched new medicines which will find use in O.T. all over the country therein opening a new market.

Dabur Foods, a subsidiary of Dabur India is expecting to grow at 25%. Its brands of juices, namely, Real and Active, together make it the market leader in the Fruit Juice Category.

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Nature of Retail and Distribution Network

India, by and large, is a nation of small shopkeepers called kirana. This comes as a tremendous challenge to companies as they are traditionally used to large retailers as their primary channel of distribution. Due to lack of economics of scale, retail chains have not flourished in rural India. Most of the people in rural areas live in small houses, they lack refrigeration facilities. Because of this they are used to daily purchases from their neighborhood kirana store. For competing successfully consumer goods companies need to build an extensive distribution network. Only then can they reach Indias rural population. For getting a strong hold on their distribution network they have to first gain shelf space in all the kirana stores, then go further on and establish a relationship with the wholesalers and the distributors in order to expand their base. A few foreign companies have overcome the sales and distribution network through joint ventures with local partners. For example, Procter and Gamble collaborated with the Godrej Group to tap into their well-established sales and distribution network.

Retail Power: In rural independent retailers are fragmented groups, but they still have a substantial amount of power in driving consumer purchases. The consumer directly interacts with the retail salesperson and derives the owners personal opinion on the

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goods. Even these rural retailers carry at least one brand from a product category. For such kind of retailing environments its important for the consumer goods companies to be first on the rural retailers shelf and develop a privileged relationship. Only then will they be able to sustain themselves in the rural market.

Relative Cheapness of Labour: Cheap labour has its implication on the consumer goods industry. In developed markets it is cost efficient to replace human labour with machines, but in case of a market which is labour intensive, manufacturing and distribution through human labour remains economical. Its very difficult to find a soft drink vending machine, but we can easily find people selling soft drinks in a pushcart or dispensing drinks from a foundation and selling them in cups. This is because the cost of installing and maintaining a vending machine outweighs the cost of employing salespeople. Because of low labor costs large chain retailers have the difficulty in implementing their developed market strategy. It is difficult for the consumer good companies to achieve economics of scale as higher capital costs result in higher priced goods, higher than goods sold by the local shops. The other cost-efficient way to reach the large number of potential customers is by mass marketing either through television or any other form of media. In India, the most effective and inexpensive way is to employ direct sales force.The focus of corporate, therefore, needs to be on the introduction of brands specific to rural customer, and developing specific strategies.

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CHAPTER-03 RESEARCH DESIGN

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RESEARCH DESIGN

Title of the study: A study on effect of Branding on Consumers in Purchasing FMCG goods in Lucknow

STATEMENT OF THE PROBLEM: FMCG are of high sales and they have short life and as they are fast moving as the title says. This study helps to understand how branding affects the purchase decision of the consumer in buying FMCG.

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OBJECTIVES OF THE STUDY: 1. To analyze how the brand affects the customers purchasing decision in FMCG goods. 2. To understand the choice of the customer is Branded or Branded goods. 3. To analyze the need of branding in FMCG goods. 4. To analyze the attributes which attract consumers to purchase the branded product. 5. To analyze the effect of promotional activities on brands in the buying behavior of customers. 6. To analyze whether branding helps customers away from competition & protect market share. Scope of the study: This study helps us to know the necessity of branding on FMCG goods which have rapid sales.

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RESEARCH METHODOLOGY Type of study: This is a descriptive type of study which means Descriptive research, also known as statistical research, describes data and characteristics about the population or phenomenon being studied. Descriptive study answers the questions who, where, what, when and how.

Survey Method: Random sampling is done by circulating questionnaire to FMCG.

Questionnaires: A well structured questionnaire had been circulated to FMCG. A questionnaire consists of a set of questions regarding effect of branding FMCG.

Sample size: 100 consumers of FMCG were taken as sample for my study.

Sample population: This particular survey is directed at only who use FMCG.

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SOURCES OF DATA: Data was collected on two sources. 1. Primary Data 2. Secondary Data. PRIMARY DATA is collected through questionnaire, search and research through place where today's computer has been mostly used. SECONDARY DATA is being search sites like magazines, newspapers, journals, websites and the data has been collected through other approaches.

Methods of interpreting data : 1. Graphs 2. Bar charts 3. Percentage.

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DATA ANALYSIS AND INTERPRETATION Analysis of Age group of respondents Table no.1 Age group No. of % of respondents

respondents 15-20 21-25 26-30 31-35 35 and above Total 21 27 18 16 19 100 Source: Primary data 21 27 18 16 19 100

Analysis: From the survey it is clear that 27% of the respondents fall in age group of 2125, 21% come under 15-20, 18% are in between 26-30, 19% of them are above 35 and 16% are of 31-35 age group

Inference: It can be inferred from above table that majority of the respondents fall in the age group of 21-25.

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Graph No. 1

Graph title: "Age group of respondents"

15-20 21-25 26-30 31-35 35 and above

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Analysis of Gender of the respondents

Table no.2 Gender No respondents Male 69 69 of % of respondents

Female

31

31

Total

100 Source: Primary data

100

Analysis: From the survey it is clear that 69% of the respondents are male and 31% are female employees.

Inference: It can be inferred from the above table that majority of respondents are of male category.

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Graph no 2

Graph Title: Gender of the respondents

80 70 60 50 40 30 20 10 0 Male Female

No of respondents

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Analysis of respondents opinion regarding their brand loyalty Table no. 3 Options No. of respondents Yes 70 70 % of respondents

No

30

30

Total

100

100

Source: Primary data

Analysis: It is clear that 70% of the respondents are brand loyal and 30% of them are not brand loyal.

Inference: It can be inferred from the above table that majority of the respondents are brand loyal.

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Graph no. 3

Graph title: Respondents opinion regarding their brand loyalty

Yes No

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Analysis Respondents opinion regarding the attribute that attracts to buy a branded product Table no. 4 Attribute No. of respondents Brand name Cleanliness Price Easy availability others Total 34 24 23 9 10 100 Source: Primary data 34 24 23 9 10 100 % of respondents

Analysis: It is clear that 34% say brand name attracts in buying branded product, 24% say that its cleanliness, 23% say that its price, 10% opine that its other factors and 9% thinks that its price attracts them to buy branded product.

Inference: It can be inferred from the above table that majority of the respondents say that brand name attracts them to buy a product.
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Graph no 4

Graph Title: Respondents opinion regarding the attribute that attracts to buy a branded product

Brand name Cleanliness Price Easy availability others

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Analysis of respondents opinion regarding the reason for the delay between purchase decision and the actual purchase Table no. 5 Reasons No respondents Financial constraints Waiting for 27 more 55 27 55 of % of respondents

innovative product Waiting response Total 100 Source: Primary data 100 for market 18 18

Analysis: It is clear that 55% of the respondents delay the actual Purchase because they wait for more innovative product, 27% say that its financial constraints and 18% are delaying actual purchase because they wait for market response. Inference: It can be inferred from the above table that majority of the respondents wait for the innovative product before the actual purchase.

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Graph no 5

Graph Title: Respondents opinion regarding the reason for the delay between purchase decision and the actual purchase

60 50 40 30 20 10 0 Financial constraints Waiting for more Waiting for market innovative product response

No of

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Analysis of Respondents opinion regarding factors that influences to buy branded product Table no. 6 Influences No respondents Advertising Shop display Word of mouth Attractive packaging Family/Friends/ Relatives Dealer Any other Total 7 4 100 7 4 100 Source: Primary data 27 8 17 20 16 27 8 17 20 16 of % of respondents

Analysis: It is clear that 27% are influenced by advertising, 20% are influenced by attractive packaging, 17% from word of mouth and 16% are influenced by family/friends/relatives. Inference: It can be inferred from the above table that majority of the respondents feel that advertisement influences them to buy branded product.

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Graph no 6:

Graph Title: Respondents opinion regarding factors that influences to buy branded product

Advertising Shop display Word of mouth Attractive packaging Family/Friends/ Relatives Dealer Any other

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Analysis Respondents opinion regarding the influence of brand name in purchase of FMCG products Table no. 7 Options No respondents Agree 54 54 of % of respondents

Strongly agree

26

26

Disagree Strongly disagree Total

17 3 100 Source: Primary data

17 3 100

Analysis: It is clear that 54% agree, 26% strongly agree, 17% disagree and 3% strongly disagree that brand name influences the purchase of FMCG products.

Inference: It can be inferred from the above table that majority of the respondents agree that brand name influences the purchase of FMCG products.

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Graph no 7

Graph Title: Respondents opinion regarding the influence of brand name in purchase of FMCG products.
60

50

40

30

No of respondents

20

10

0 Agree Stongly agree Disagree Strongly disagree

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Respondents opinion regarding the influence of Quality in purchase of FMCG products Table no. 8 Options No respondents Agree 52 52 of % of respondents

Strongly agree

34

34

Disagree Strongly disagree Total

13 1 100 Source: Primary data

13 1 100

Analysis: It is clear that 52% agree, 34% strongly agree, 13% disagree and 1% strongly disagree that quality influences the purchase of FMCG products.

Inference: It can be inferred from the above table that majority of the respondents agree that quality influences the purchase of FMCG products.

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Graph no 8

Graph Title: Respondents opinion regarding the influence of Quality in purchase of FMCG products

60

50

40 No of respondents

30

20

10

0 Agree Strongly agree Disagree Strongly agree

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Analysis of Respondents opinion regarding the influence of price in purchase of FMCG products Table no. 9 Options No. of respondents Agree Strongly agree 43 30 43 30 % of respondents

Disagree Strongly disagree Total

23 4 100

23 4 100 Source: Primary data

.Analysis: It is clear that 43% agree, 30% strongly agree, 23% disagree and 4% strongly disagree that quality influences the purchase of FMCG products.

Inference: It can be inferred from the above table that majority of the respondents agree that quality influences the purchase of FMCG products.

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Graph no. 9

Graph title: Respondents opinion regarding the influence of price in purchase of FMCG products

Agree Strongly agree Disagree strongly agree

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Analysis of table of satisfaction of respondents towards the product features branded FMCG products

Table no. 10 Options No. of respondents Yes 80 80 % of respondents

No

20

20

Total

100 Source: Primary data

100

Analysis: It is clear that 80% of the respondents are satisfied and 20% of them are not satisfied with the product features of branded FMCG products

Inference: It can be inferred from the above table that majority of the respondents are satisfied with the product features of branded FMCG products.

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Graph no 10

Graph Title: Table of satisfaction of respondents towards the product features branded FMCG products

80 70 60 50 No of respondents 40 30 20 10 0 Yes No

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Analysis of respondents opinion regarding the influence of advertisement in purchase of FMCG products Table no. 11 Options No. of respondents Agree 47 47 % of respondents

Strongly agree

40

40

Disagree Strongly disagree Total

10 3 100 Source: Primary data

10 3 100

Analysis: It is clear that 42% agree, 40% strongly agree, 10% disagree and 3% strongly disagree that quality influences the purchase of FMCG products.

Inference: It can be inferred from the above table that majority of the respondents agree that quality influences the purchase of FMCG products.

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Graph no 11

Graph Title: Respondents opinion regarding the influence of advertisement in purchase of FMCG products
50 45 40 35 30 25 20 15 10 5 0 Agree Strongly agree Disagree Strongly disagree No of respondents

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Analysis of respondents opinion regarding the switching of brand preference if promotional scheme is offered with another brand Table no. 12 Options No. of respondents Yes 57 57 % of respondents

No

43

43

Total

100

100

Source: Primary data

Analysis: It is clear that 57% of the respondents would like to switch brand and 43% of them do not like to switch brand if promotional scheme is offered with another brand.

Inference: It can be inferred from the above table that majority of the respondents would like to switch brand preference if promotional scheme is offered with another brand.

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Graph no 12

Graph Title: Respondents opinion regarding the switching of brand preference if promotional scheme offered with another brand

Yes 2nd Qtr

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Respondents opinion regarding purchase of FMCG product if required immediately Table No.13 Options No of respondents Buy the available product 61 61 % of respondents

Search for the branded 39 product Total 100 Source: Primary data

39

100

Analysis: It is clear that 61% of the respondents would like to buy the available product and 39% of them would search for the branded FMCG product.

Inference: It can be inferred from the above table that majority of the respondents would like to buy the easily available product if required immediately.

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Graph no 13

Graph Title: Respondents opinion regarding purchase of FMCG product if required immediately

Buy the available product Search for the branded product

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Analysis of respondents opinion regarding branded FMCG products over unbranded FMCG products Table no. 14 Options No respondents Yes 63 63 of % of respondents

No

37

37

Total

100

100

Source: Primary data

Analysis: It is clear that 63% of the respondents say that branded FMCG products are better than unbranded FMCG products and 37% of them feel that unbranded FMCGs are better

Inference: It can be inferred from the above table that majority of the respondents feel that branded FMCG products are better than unbranded FMCG products.

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Graph no 14

Graph Title: Respondents opinion regarding branded FMCG products over unbranded FMCG products
70 60 50 40 30 20 10 0 Yes No No of respondents

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FINDINGS

1. It is clear from above table that majority of the respondents fall in the age group of 2125.

2. We can conclude that majority of respondents are of male category.

3. It can be inferred from the above table that majority of the respondents are brand loyal.

4. From the survey it is clear that majority of the respondents say that brand name attracts them to buy a product.

5. We can easily say that majority of the respondents wait for the innovative product before the actual purchase

6. It is clear the above table that majority of the respondents feel that advertisement influences them to buy branded product.

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7. We can conclude that majority of the respondents agree that brand name influences the purchase of FMCG products.

8. It is clear from the above table that majority of the respondents agree that quality influences the purchase of FMCG products.

9. From the survey it is clear that majority of the respondents agree that quality influences the purchase of FMCG products

10. It is clear that majority of the respondents are satisfied with the product features of branded FMCG products.

11. We can conclude that majority of the respondents agree that quality influences the purchase of FMCG products.

12. Survey shows that majority of the respondents would like to switch brand preference if promotional scheme is offered with another brand.

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13. It is clear that majority of the respondents would like to buy the easily available product if required immediately.

14. From the survey it is clear that majority of the respondents feel that branded FMCG products are better than unbranded FMCG products.

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QUESTIONNAIRE

Dear friends,

I am a BBM student, as a part of course curriculum; I have taken up a study on effect of branding on consumers in purchasing FMCG goods. I would be grateful if you kindly co-operate by answering this questionnaire.

The information is only for academic purpose and would be kept confidential.

PERSONAL DETAILS

NAME OF THE RESPONDENT:

OCCUPATION:

AGE GROUP: 15-

MONTHLY INCOME:

5000-10000

10001-20000

20001-30000

30000 and above

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1. Are you a brand loyal customer?

Yes

No

2. Which attribute did attract you to purchase branded products?

Brand Name

Transparent

Price

Cleanliness

Easy Availability

Others

3. What was the reason for the delay between the purchase decision and the actual purchase?

Financial constraints

waiting for more innovative product

waiting for market response

4. What influenced you to buy the branded products?

Advertising

Shop Display

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Word of mouth

Family/Friend/Relatives

Attractive packaging

any other

Dealer

5. Brand name influences in purchase of FMCG products.

Agree

Disagree

Strongly Agree

strongly disagree

6. Quality influences in purchase of FMCG products.

Agree

Disagree

Strongly Agree

strongly disagree

7. Price influences in purchase of FMCG products.

Agree

Disagree

Strongly Agree

strongly disagree

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8. Are you satisfied with the product features of branded FMCG products?

Yes

9. Advertisement influences in Purchase of FMCG products.

Agree

Disagree

Strongly Agree

strongly disagree

10. Will you like to switch your brand preference if you get some promotional scheme with another brand?

Yes

No

11. Do you think branded FMCG products are better than unbranded FMCG product?

Yes

No

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