SURVEY REPORT ON

CONSUMER BEHAVIOUR OF FMCG PRODUCTS

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR
THE
BACHELOR OF BUSINESS ADMINISTRATION
SESSION (2011-2014)
GUIDED BY:- SUBMITTED BY:-
MR. ATUL PANDEY BAIRISTR KUMAR
LECTURER (I.C.S.T) B.B.A.
!"
S#$#%!#&
VARANASI ENROLLMENT NO - KA2K12'11(2(
1
DECLARATION
I B)*&*%!& K+$)& declare that the project work entitled as CONSUMER
BEHAVIOUR OF FMCG PRODUCTS is an authentic record o !" own work carried
out at IN#TIT$TE O% CO&'$TER #CIENCE ( TEC)NOLO*+, -ARANA#I as
re.uired or the project se!ester or the award o de/ree o 00A, under the /uidance o
Mr. Manish Gautam
Place:
Date: #i/nature1 2222222222

3
AC4NO5LED*E&ENT
I a! thankul to !an" people whose ti!el" help and /uidance has helped !e to
conduct this research successull"6
I would also like to e7press !" thankulness M&. M),*%" G)+!)$
8Lecturer9, %acult" o IN#TIT$TE O% CO&'$TER #CIENCE (
TEC)NOLO*+, -ARANA#I, -aranasi or /i:in/ !e an opportunit" to pursue
this project6
I also wish to thank all those respondents who were patient enou/h in
/i:in/ answer to the .uestionnaire6
%inall", I would like to e7tend !" /rateul thanks to all our riends and
acult" !e!;ers o #hepa, -aranasi whose assistance has a lot to !e
personall" or the co!pletion o this research6
<
PREFACE
This sur:e" has ;een conducted to check the act that -CONSUMER
BEHAVIOUR OF FMCG PRODUCTS6 This project is carried out to translate
the theoretical knowled/e o the su;ject into the ield work6 This project is carried
out in the partial ulill!ent o the BBA
!"
S#$ course o INSTITUTE OF
COMPUTER SCIENCE . TECHNOLOGY/ VARANASI.

0airistr 4u!ar
0606A6
Enroll!ent No6 4A3413=11>3?>
@
Table of Content

1. Executive summary
2. Introduction
3. Overview of FMCG
4. FMCG in 2012
. Com!arison "etween FMCG in 2013 # 2012
$. %ector&s out'oo(
). %co!e of FMCG
*. Growt+ !ros!ects
,. -o! !'ayers in FMCG sector
10. %econdary !'ayers
11..eview of 'iterature
12. .esearc+ o"/ectives
13..esearc+ met+odo'o0y
14.1anoramic 2iew
1. Income "ased c'assification
1$.%ocio 3 economic c'assification
1).40e demo0ra!+ics
1*. Geo0ra!+ica' dis!ersion
1,. 4na'ysis
20.Conc'usion
21.%u00estions # recommendations
22..eferences
5uestionnaire
Executive Summary
A
In t+is researc+ t+e researc+er +as !ut an effort to understand t+e "uyin0 "e+avior
of t+e consumers towards FMCG !roducts.
1. In t+is re!ort6 t+e researc+er +as first of a'' 0iven a "rief review a"out
FMCG sector as a w+o'e.
2. -+en s+e +as 0iven a review of t+e findin0s of some of t+e researc+es t+at
+as a'ready "een conducted "y various researc+ers.
3. -+en s+e +as enumerated +er researc+ o"/ectives.
4. -+en s+e +as 0iven t+e !anoramic view re0ardin0 t+e to!ic.
. -+en s+e +as descri"ed +er researc+ met+odo'o0y i.e.6 t+e sam!'e unit6
sam!'e si7e6 sam!'in0 re0ion6 sam!'in0 !rocedure t+at s+e +as used in +er
re!ort.
$. %+e +as used stratified random sam!'in0 as +er sam!'in0 !rocedure.
). -+en s+e +as ana'y7ed t+e data w+ic+ was co''ected "y a 8uestionnaire.
*. -+en s+e +as conc'uded t+e findin0s of t+e survey.
,. -+en fina''y6 s+e +as 0iven few su00estions # recommendations re0ardin0
t+e to!ic.
Introduction
?
-+ere was a time w+en t+e FMCG com!anies i0nores rura' mar(et6 t+ey
too( no any interest to !roduced or se'' !roducts in rura' mar(et in India. It was
t+e initia' sta0e of FMCG com!anies in India. 4s !er as t+e time +ad !assed6 t+e
strate0y and mar(etin0 sty'e of FMCG com!anies +ad "een c+an0ed.
-+e rura' mar(et is t+e one of t+e "est o!!ortunity for t+e FMCG sector in t+e
India. It is wider and 'ess com!etitive mar(et for t+e FMCG. 4s t+e income 'eve'
of t+e rura' consumers increasin06 t+e demand of FMCG is increasin0
continuous'y.
Fast movin0 consumer 0oods 9FMCG: are !o!u'ar'y named as consumer
!ac(a0ed 0oods. Items in t+is cate0ory inc'ude a'' consuma"'es 9ot+er t+an
0roceries;!u'ses: !eo!'e "uy at re0u'ar interva's. -+e most common in t+e 'ist are
toi'et soa!s6 deter0ents6 s+am!oos6 toot+ !aste6 s+avin0 !roducts6 s+oe !o'is+6
!ac(a0ed food stuff6 +ouse+o'd accessories6 extends to certain e'ectronic 0oods.
-+ese items are meant for dai'y or fre8uent consum!tion # +ave a +i0+ return.
4 ma/or !ortion of t+e mont+'y "ud0et of eac+ +ouse+o'd is reserved for FMCG
!roducts. -+e vo'ume of !roducts circu'ated in t+e economy a0ainst FMCG
!roducts is very +i0+6 as t+e num"er of !roducts t+e consumer uses6 is
com!arative'y very +i0+. Com!etition in FMCG sector is very +i0+ resu'tin0 in
+i0+ !ressure on mar0ins.
FMCG com!anies maintain intense distri"ution networ(. Com!anies s!end a
'ar0e !ortion of t+eir "ud0et on maintainin0 distri"ution networ(s. <ew entrants
w+o wis+ to "rin0 t+eir !roducts in t+e nationa' 'eve' need to invest +u0e sums of
money on !romotin0 "rands. Manufacturin0 can "e outsourced. 4 recent
!+enomenon in t+e sector was entry of mu'tinationa's and c+ea!er im!orts. 4'so
t+e mar(et is more !ressuri7ed wit+ !resence of 'oca' !'ayers in rura' areas and
state "rands.
>
Overview of FMCG Sector
FMCG is an acronym for Fast Movin0 Consumer Goods6 w+ic+ refer to
t+in0s t+at we "uy from 'oca' su!ermar(ets on dai'y "asis6 t+e t+in0s t+at +ave
+i0+ turnover # are re'ative'y c+ea!er.
4fter 4 years of du'' !erformance in "ot+ revenues # !rofits6 FMCG
sector +as now6 i.e.6 since 20136 0ained t+e momentum6 !rinci!a''y "ecause of t+e
sma''er com!anies t+at +ave su"stantia''y im!roved t+eir mar(et s+ares at t+e cost
of 'ar0er !'ayers6 # in some cases6 t+e re0iona' !'ayers.
If we carefu''y o"serve t+e FMCG index # =%E index6 we wou'd rea'i7e t+at t+e
returns on money invested in FMCG index are muc+ 'ower t+an t+e returns in
"enc+mar( index. -+e FMCG sector +as under !erformed t+e "enc+mar( =%E
sensex in 2012. -+ou0+ "ot+ t+e indices were c'ose to eac+ ot+er ti'' au0ust 20126
+owever6 in t+e 'ater !art of t+e year t+e sensex sur!assed t+e FMCG index "y a
reasona"'e mar0in.
Comparison of 2!2 and 2!"
4fter two years of sin(in0 !erformance of FMCG sector6 t+e year
2013 +as witnessed t+e FMCG&s demand 0rowin0. %tron0 0rowt+ was seen across
various se0ments in F>0$. ?it+ t+e rise in dis!osa"'e income and t+e economy in
0ood +ea't+6 t+e ur"an consumers continued wit+ t+eir s+o!!in0 s!ree. -+e rura'
demand 0rew at around 11@6 w+i'e "ot+ t+e ur"an and rura' sector to0et+er
re0istered a 0rowt+ of around *@. 1ac(ets and sac+ets contri"uted to t+e +i0+est
0rowt+ in rura' areas. Growt+ in FMCG de!ends on two factorsA
B
Increase in !enetration and consum!tion in rura' areas
C+an0e in as!irations and tastes of t+e ur"an !o!u'ation
=ot+ t+ese factors contri"uted to 0rowt+ in 2012. =esides demand6 !rices
a'so increased6 "ecause of w+ic+ on'y t+e se'ected consumers moved u! in t+e
va'ue c+ain. -+e 'ar0e format retai' stores in metros a'so stimu'ated sa'es6 even if
on a very sma'' "ase. %ome com!anies a"sor"ed +i0+er in!ut !rices6 w+i'e ot+ers
were a"'e to !ass on t+e cost to t+e consumers.
Sector#s Outloo$
FMCG is t+e fourt+ 'ar0est sector in t+e Indian Economy wit+ a tota' mar(et si7e
of .s.$06000 crores. FMCG sector 0enerates @ of tota' factory em!'oyment in
t+e country and is creatin0 em!'oyment for t+ree mi''ion !eo!'e6 es!ecia''y in
sma'' towns and rura' India.
4ccordin0 to a CII 3 4 - Bearney .e!ort6 t+e FMCG sector in India is ex!ected
to 0row at a com!ounded 0rowt+ rate 9C4G.: of ,@ to a si7e of .s.16436000
crores "y 2010 from .s. ,36000 crores at !resent.
?it+ a 0rowt+ of 2.@6 t+e =%E FMCG index +as6 durin0 t+e 'ast 1 year
out!erformed t+e sensex6 w+ic+ cou'd mana0e a 0rowt+ of 41@ on'y. 4 we''
esta"'is+ed distri"ution networ(6 intense com!etition "etween t+e or0ani7ed #
unor0ani7ed se0ments6 'ow o!eratin0 costs6 stron0 "randin0 c+aracteri7es t+e
mar(et.
C
-+e 'ar0e consumer "ase6 !articu'ar'y in rura' sector6 and t+e 0rowin0 midd'e c'ass
o!en u! +u0e o!!ortunities to FMCG com!anies to ta(e t+e consumers to "randed
!roducts and offer new 0eneration !roducts.
-+e sectorCs 'ac(D'uster !erformance in t+e 'ast few years was due to !rice
com!etition and increase in raw materia's cost. Eowever6 in t+e F>0$6 t+e sector
+as witnessed a dou"'eDdi0it 0rowt+ in !rofits and revenues. -+e sector +as
re0istered an u! trend in 0rowt+ across cate0ories6 suc+ as +ea't+ su!!'ement6
s+am!oo6 toot+!aste6 +air oi's6 and mos8uito re!e''ant6 as s+own in ta"'e "e'owA
Sales %alue Growt& '
Cate(ories 2)*2!" 2!"*2!2 +pr,2!2*Sept,
2!2
-ealt& Supplement
.C&yawanpras&/
*0' ' 2"'
S&ampoo !' 2"' !1'
Toot&paste 0' 2' !2'
-air Oils 1' !3' 2"'
Mos4uito 5epellant !"' !' 21'
1D
Source6 CII 7 + T 8earney 5eport9 .2/
Sector Financials In millions

"!*"*2!2 "!*"*2!" "!*"*2)
:et Sales
Sales Growt&
!2)9!12
!,3'
!)392)!
2,'
!)09"3
*
;rofit after Tax
;+T Growt&
!19010
!2,2'
!<9!
*2),2'
2!93
*
Mar$et
Capitali=ation
<)9<)2 2093! 2"9<2
Enterprise %alue 22290) 2)09)<< 00!91<!
5eturn on Capital
Employed .5OCE/
)<,!' 0!,' )0,0'
;>E 5atio 22,<' 2<,!' 2!,'
Source6 CII 7 + T 8earney 5eport9 .2/
Scope of t&e FMCG Sector
-+e Indian FMCG sector +as a mar(et si7e of F% G13.1 "i''ion. FMCG sector is
ex!ected to 0row "y over $0@ "y 2010. -+at wi'' trans'ate into an annua' 0rowt+
of 10@ over a !eriod of years. It +as "een estimated t+at FMCG sector wi'' rise
from around .s. $600 crores in 2013 to .s. ,26100 crores in 2010. Eair care6
11
+ouse+o'd care6 ma'e 0roomin06 fema'e +y0iene6 # t+e c+oco'ates #
confectionary cate0ories are estimated to "e t+e fastest 0rowin0 se0ments6 says an
E%=C .e!ort. -+ou0+ t+e sector witnessed a s'ower 0rowt+ in 2002 3 046 it +as
"een to ma(e a fine recovery since t+en.
For exam!'e6 Eindustan Hevers Himited 9EHH: +as s+own a +ea't+y 0rowt+ in t+e
'ast 8uarter. 4n estimated dou"'eDdi0it 0rowt+ over t+e next few years s+ows t+at
t+e 0ood times are 'i(e'y to continue.
Growt& ;rospects
?it+ t+e !resence of 12.2@ of t+e wor'd !o!u'ation in t+e vi''a0es of India6 t+e
Indian rura' FMCG mar(et is somet+in0 no one can over'oo(. Increased focus on
farm sector wi'' "oost rura' incomes6 +ence !rovidin0 "etter 0rowt+ !ros!ects to
t+e FMCG com!anies. =etter infrastructure faci'ities wi'' im!rove t+eir su!!'y
c+ain. FMCG sector is a'so 'i(e'y to "enefit from 0rowin0 demand in t+e mar(et.
=ecause of t+e 'ow !er ca!ita consum!tion for a'most a'' t+e !roducts in t+e
country6 FMCG com!anies +ave immense !ossi"i'ities for 0rowt+. 4nd if t+e
com!anies are a"'e to c+an0e t+e mindset of t+e consumers6 i.e. if t+ey are a"'e to
ta(e t+e consumers to "randed !roducts and offer new 0eneration !roducts6 t+ey
wou'd "e a"'e to 0enerate +i0+er 0rowt+ in t+e near future. It is ex!ected t+at t+e
rura' income wi'' rise in 200)6 "oostin0 !urc+asin0 !ower in t+e countryside.
Eowever6 t+e demand in ur"an areas wou'd "e t+e (ey 0rowt+ driver over t+e 'on0
term. 4'so6 increase in t+e ur"an !o!u'ation6 a'on0 wit+ increase in income 'eve's
and t+e avai'a"i'ity of new cate0ories6 wou'd +e'! t+e ur"an areas maintain t+eir
13
!osition in terms of consum!tion. 4t !resent6 ur"an India accounts for $$@ of
tota' FMCG consum!tion6 wit+ rura' India accountin0 for t+e remainin0 34@.
Eowever6 rura' India accounts for more t+an 40@ consum!tion in ma/or FMCG
cate0ories suc+ as !ersona' care6 fa"ric care6 and +ot "evera0es. In ur"an areas6
+ome and !ersona' care cate0ory6 inc'udin0 s(in care6 +ouse+o'd care and
feminine +y0iene6 wi'' (ee! 0rowin0 at re'ative'y attractive rates. ?it+in t+e foods
se0ment6 it is estimated t+at !rocessed foods6 "a(ery6 and dairy are 'on0Dterm
0rowt+ cate0ories in "ot+ rura' and ur"an areas.
Indian Com!etitiveness and Com!arison wit+ t+e ?or'd Mar(etsA
-+e fo''owin0 factors ma(e India a com!etitive !'ayer in FMCG sectorA
1. 4vai'a"i'ity of raw materia's
=ecause of t+e diverse a0roDc'imatic conditions in India6 t+ere is a 'ar0e raw
materia' "ase suita"'e for food !rocessin0 industries. India is t+e 'ar0est !roducer
of 'ivestoc(6 mi'(6 su0arcane6 coconut6 s!ices and cas+ew and is t+e second 'ar0est
!roducer of rice6 w+eat and fruits #ve0eta"'es. India a'so !roduces caustic soda
and soda as+6 w+ic+ are re8uired for t+e !roduction of soa!s and deter0ents. -+e
avai'a"i'ity of t+ese raw materia's 0ives India t+e 'ocation advanta0e.
2. Ha"or cost com!arison
1<
How cost 'a"or 0ives India a com!etitive advanta0e. IndiaCs 'a"or cost is amon0st
t+e 'owest in t+e wor'd6 after C+ina # Indonesia. How 'a"or costs 0ive t+e
advanta0e of 'ow cost of !roduction. Many M<CCs +ave esta"'is+ed t+eir !'ants in
India to outsource for domestic and ex!ort mar(ets.
3. 1resence across va'ue c+ain
Indian com!anies +ave t+eir !resence across t+e va'ue c+ain of FMCG sector6
ri0+t from t+e su!!'y of raw materia's to !ac(a0ed 0oods in t+e foodD!rocessin0
sector. -+is "rin0s India a more cost com!etitive advanta0e. For exam!'e6 4mu'
su!!'ies mi'( as we'' as dairy !roducts 'i(e c+eese6 "utter6 etc.
Top ;layers in FMCG Sector
1. Eindustan 'ever 'imited 9EHH:
2. I-C 9Indian -o"acco Com!any:
3. <est'e India
1@
4. GCMMF 94MFH:
. Ia"ur India
$. 4sian 1aints 9India:
). Cad"ury India
*. =ritannia Industries
,. 1rocter # Gam"'e Ey0iene # Eea't+ Care
10. Marico Industries
Secondary ;layers
1. Co'0ateD1a'mo'ive 9India: Htd.
2. Godre/ Consumers 1roduct Htd.
3. <irma Htd.
4. -ata -ea Htd.
. 1ar'e 40ro
$. E. J. Eein7
5eview of ?iterature
.ura' mar(et is one of t+e "est o!!ortunities for t+e FMCG
sector. In some sense we can say t+at rura' mar(et is future of FMCG.
!, @asu ;urba .2)/9 su((ested t+at t+e 'ifesty'e of rura' consumers is c+an0in0.
.ura' Indian mar(et and t+e mar(etin0 strate0y +ave "ecome t+e 'atest mar(etin0
"u77word for most of t+e FMCG ma/ors. %+e added t+e strate0ies of different
FMCG com!anies for ca!turin0 rura' mar(et 'i(e -itan&s %onata watc+es6 Coco
Co'a&s 200m' "ott'e6 different strate0ies of EFH and Marico etc. %+e ta(es into
1A
consideration t+e study of <ationa' Counci' for 4!!'ied Economic .esearc+
9<C4E.:. 4ccordin0 to t+e <C4E. !ro/ections6 t+e num"er of midd'e and +i0+D
income +ouse+o'ds in rura' area is ex!ected to 0row from 140 mi''ion to 1,0
mi''ion "y 200). In ur"an India6 t+e same is ex!ected to 0row from $ mi''ion to
), mi''ion. -+us6 t+e a"so'ute si7e of rura' India is ex!ected to "e dou"'e t+at of
ur"an India.

2. To(natta ;radeep .2"/9 su((ested t&at 9 t+e economic 0rowt+ in IndiaCs
a0ricu'tura' sector in 'ast year was over 10@6 com!ared wit+ *.@ in t+e
industria' sector. -+is im!'ies a +u0e mar(et !otentia'ity for t+e mar(eter to meet
u! increasin0 demand. Factors suc+ as vi''a0e !syc+e6 stron0 distri"ution networ(
and mar(et awareness are few !rere8uisites for ma(in0 a dent in t+e rura' mar(ets.
-+e mode' is of t+e sto'id 4n0'oDIutc+ con0'omerate Fni'ever Grou!6 w+ic+ +as
en/oyed a centuryD'on0 !resence in India t+rou0+ its su"sidiary Eindustan Hever
Htd. It was Eindustan Hever t+at severa' years a0o !o!u'ari7ed t+e idea of se''in0
its !roducts in tiny !ac(a0es. Its sac+ets of deter0ent and s+am!oo are in 0reat
demand in Indian vi''a0es. =ritannia wit+ its 'ow !riced -i0er "rand "iscuits +as
"ecome some of t+e success story in rura' mar(etin0.

", +it&al9 8 5aAes& .2)/9 su((ested t&at rura' mar(ets are an im!ortant and
0rowin0 mar(et for most !roducts and services inc'udin0 te'ecom. -+e
c+aracteristics of t+e mar(et in terms of 'ow and s!read out !o!u'ation and 'imited
!urc+asin0 !ower ma(e it a difficu't mar(et to ca!ture. -+e =ottom of t+e
!yramid mar(etin0 strate0ies and t+e 4 4Cs mode' of 4vai'a"i'ity6 4fforda"i'ity6
4cce!ta"i'ity and 4wareness !rovide us wit+ a means of deve'o!in0 a!!ro!riate
strate0ies to tac('e t+e mar(etin0 issues for mar(etin0 te'ecom services in rura'
areas. %uccessfu' cases 'i(e t+e Grameen 1+one in =an0'ades+ and %mart
1?
Communications Inc in 1+i'i!!ines a'so !rovide us wit+ some 0uide'ines to
tac('in0 t+e issue.
4s !er my concern of t+e researc+6 it is a detai' study of different
FMCG !roducts used "y rura' consumers. It wi'' !rovide detai' information a"out
consumer !references towards a 0ood num"er of FMCG !roducts w+ic+ is too
uni8ue and different from t+ose a"ove researc+es.
5esearc& obAectives
-o understand t+e demand !attern of FMCG !roducts in t+e rura' mar(et.
-o (now t+e amount of +ouse+o'd income s!ent on t+e consum!tion of
FMCG !roducts.
-o understand t+e ima0e of t+e !roducts in t+e eyes of t+e consumers.
1>
5esearc& met&odolo(y
Bata collection
Sample unit6
1. wor(in0 !eo!'e 9inc'udin0 men # women:
2. co''e0e students
3. sc+oo' students
4. senior citi7ens
Sample si=e6
1. wor(in0 !eo!'eA 32@
2. co''e0e studentsA 2,@
3. sc+oo' studentsA 23@
4. senior citi7ensA 1$@
1B
Samplin( re(ion6
1. -+e researc+er +as se'ected HFCB<O?6 t+e Ca!ita' city of Fttar 1rades+
as +er area of study.
2. %+e +as c+osen GOM-I <4G4.6 M4E4<4G4.6 4HIG4<J as +er areas
of researc+. In t+ese areas s+e can easi'y meet wor(in0 !eo!'e 9"ot+ ma'e #
fema'e:6 sc+oo' students6 co''e0e students # senior citi7ens.
-+e !o!u'ation status of t+ese areas can "e s+own in a ta"u'ated manner6 w+ic+ is
0iven as fo''owsA
+rea ;opulation
Gomti :a(ar !291<90<
Ma&ana(ar 39!292"
+li(anA 39<092)
;opulation is in approximate fi(ures,
Source6 &ttp6>>www,up(ov,nic,in>upinfo>census!>cen!*!,&tm
:ote6 4s t+e examiner can see t+at t+e !o!u'ation of areas 9areas t+at are
c+osen "y t+e researc+er: is very 'ar0e6 t+erefore t+e researc+er +as stratified
t+e area. %+e +as c+osen various areas t+at come under t+ese areas.
-+e areas covered "y t+e researc+er in Gomti <a0ar are 2iram B+and6 2inamr
B+and6 2i"+uti B+and . t+e !o!u'ation 'eve' of t+ese areas areA
+rea ;opulation
%is&was 8&and 293"902"
%ipul 8&and "91"9<23
%ive$ 8&and 29329<32

Source6 ?uc$now Bevelopment +ut&ority
1C
:ote6 t+e researc+er too( t+ese areas "ecause t+ese areas are near to various
sc+oo' # co''e0es. -+e researc+er too( sc+oo' # co''e0e students as +er
sam!'e unit.
-+e areas covered "y t+e researc+er in Ma+a <a0ar are C+andra Ho( #
Ma+ana0ar Co'ony. -+e !o!u'ation statuses of t+ese areas areA
+rea ;opulation
C&andra ?o$ 29")932"
Ma&ana(ar Colony "93)923"
Source6 ?uc$now Bevelopment +ut&ority
:ote6 -+e researc+er too( t+ese areas "ecause t+ere are various sc+oo's #
institutes near"y t+ese !'aces.
-+e areas covered "y t+e researc+er in 4HIG4<J are Jan(i!uram # %a+ara
City. -+e !o!u'ation statuses of t+ese areas areA
+rea ;opulation
Can$ipuram 29<392<0
Sa&ara City !9319132
Source6 ?uc$now Bevelopment +ut&ority
:ote6 -+e researc+er too( 4'i0an/ as one of t+e areas for +er study "ecause s+e
'ives in /an(i!uram # it was 8uite easy for +er to conduct t+e survey in t+at
!articu'ar !'ace.
3D
Samplin( procedure6
-+e researc+er wi'' ta(e stratified random samplin( as t+e sam!'in0
!rocedure.
Bata collection met&od6
1. ;rimary data6 it wi'' "e co''ected wit+ t+e +e'! of a se'f
administered 8uestionnaire. -+is 8uestionnaire aims to 0at+er information
re'ated to various =randed !roducts.
2. Secondary data6 it wi'' "e co''ected wit+ t+e +e'! of "oo(s6
researc+ !a!ers6 ma0a7ines6 news !a!ers6 /ourna's6 internet6 etc.
5esearc& instruments6
Duestionnaire desi(n6
4s t+e 8uestionnaire is se'f administrated one6 t+e survey is (e!t sim!'e and user
friend'y. ?ords used in 8uestionnaire are readi'y understanda"'e to a'' res!ondent.
4'so tec+nica' /ar0ons are avoided to ensure t+at t+ere is no confusion for
res!ondents.
31
;anoramic %iew
India +as a !o!u'ation of over 1 "i''ion # 4 c'imatic Kones. %evera'
re'i0ious # !ersona' "e'iefs6 1 'an0ua0es6 different socia' customs # food +a"its
cate0ori7e Indian consumer c'ass. =esides t+is6 India is a'so different in cu'ture if
com!ared wit+ ot+er 4sian countries. -+erefore6 India +as +i0+ distinctiveness in
demand and t+e com!anies in India can 0et 'ot of mar(et o!!ortunities for various
c'asses of consumers. Consumer 0oods mar(eters& ex!erience t+at dea'in0 wit+
India is 'i(e dea'in0 wit+ many sma'' mar(ets at t+e same time.
Indian consumer 0oods mar(et is ex!ected to reac+ G400 "i''ion "y
2010. India +as t+e youn0est !o!u'ation amon0st t+e ma/or countries. -+ere are a
'ot of youn0 !eo!'e in India in different income cate0ories.
Consumer 0oods mar(eters are often faced wit+ a di'emma re0ardin0
t+e c+oice of a!!ro!riate mar(et se0ment.
In India t+ey do not +ave to face t+is di'emma 'ar0e'y "ecause ra!id
ur"ani7ation6 increase in demand6 !resence of 'ar0e num"er of youn0 !o!u'ation6
any num"er of o!!ortunities is avai'a"'e. -+e "ottom 'ine is t+at Indian mar(et is
c+an0in0 ra!id'y and is s+owin0 un!recedented consumer "usiness o!!ortunity.
4s t+e restrictions on forei0n investments were re'axed in 1,,16 Mu'tiD<ationa'
Com!anies +ave "een enterin0 India since t+en.
33
Mar$et Si=e in
E million
Mar$et S&are in '
!0
Indian
Companies
M:Cs
Indian
Companies
M:Cs
!112 2) !112 2)
@rea$fast
cereals
2 20 ! 02 )3
Fafers9
potato
c&ips
2 "0 ! "< 2"
Fas&in(
Mac&ines
) 0< 13 2 0! )1
T% 2" "9" 1< " )1 0!
!112 EG" rupees
2) EG)0 rupees
Source6 Center for Monitorin( Indian Economy .CMIE/
?it+ a !o!u'ation of 1 "i''ion !eo!'e6 India is a "i0 mar(et for
FMCG com!anies. 4round )0@ of t+e tota' +ouse+o'ds in India reside in t+e rura'
areas. -+e tota' num"er of rura' +ouse+o'ds is ex!ected to rise from 13 m in 2002
to 13 m in 20106 w+ic+ re!resents t+e 'ar0est !otentia' mar(et in t+e wor'd.
5ural and urban potential
Hrba 5ural
3<
n
;opulation 2!*2 .m
&ouse&old/
0" !"0
;opulation 21*! .m
&ouse&old/
21 !0"
' Bistribution .2!*2/ 23 <2
Mar$et .Towns>%illa(es/ "9<23 22<9
Source6 Statistical Outline of India .2!*2/9 :C+E5
Indian consumer c'ass can "e c'assified accordin0 to t+e fo''owin0
criteriaA
1. Income
2. %ocioDEconomic status
3. 40e demo0ra!+ics
4. Geo0ra!+ica' dis!ersion
Income based classification
3@
India +as a !o!u'ation of 1.0, "i''ion !eo!'e6 com!risin0 of 1;$t+ of
t+e wor'd !o!u'ation. IndiaCs !o!u'ation can "e divided into 0rou!s on t+e "asis
of annua' +ouse+o'd income. -+ese 0rou!s areA
1. Ei0+er income
2. F!!er midd'e income
3. Midd'e midd'e income
4. Hower midd'e income
. Hower income
-+e income c'assification does not re!resent a rea' scenario for an
internationa' "usiness "ecause t+e !urc+asin0 !ower of currencies differs
si0nificant'y. -+e rea' !urc+asin0 !ower of Indian ru!ee is +i0+er t+an t+e
internationa' exc+an0e va'ue.
In addition to t+at6 income c'assification is not an effective too' to
ascertain consum!tion and owners+i! trends in t+e economy.
Consumer Classification
4ccordin0 to <ationa' Counci' of 4!!'ied Economic .esearc+ 9<C4E.: t+ere
are consumer c'asses t+at differ in t+eir owners+i! !atterns and consum!tion
"e+avior across various se0ments of 0oods.
3A
Consumer Classes
+nnual Income in
5s,
!112 2! 2< C&an(e
T&e 5ic&
5s, 2!09 and
more
!,2 2, 2,2 )!2'
T&e Consumin(
Class
5s )0* 2!09 "2,0 0),2 1,1 !<1'
T&e Climbers 5s, 22*)09 0),! <!,2 <),! "<'
T&e +spirants 5s, !2*229 )) 23,! !0," *20'
T&e Bestitute @elow 5s, !29 "" 2",) !2,3 *2!'
Total !2),3 !3,< !11,2 2!'
Source6 :C+E5
-+e c'asses of consumer +ouse+o'ds 9consumer c'assification:
s+ow t+e economic deve'o!ment across t+e country "ased on consum!tion trends.
Socio economic classification
In addition to income c'assification and consumer c'assification6
Indian +ouse+o'ds can a'so "e se0mented accordin0 to t+e occu!ation and
3?
education 'eve's of t+e c+ief earner of t+e +ouse+o'd 9t+e !erson w+o contri"utes
most to t+e +ouse+o'd ex!enses:. -+is is ca''ed as %ocioDeconomic C'assification
9%EC:6 w+ic+ is main'y used "y mar(et !'anners to tar0et mar(et "efore 'aunc+in0
t+eir new !roducts. %EC is made to understand t+e !urc+ase "e+avior and t+e
consum!tion !attern of t+e +ouse+o'ds.
-+e ur"an area is se0re0ated intoA 416 426 =16 =26 C6 I6 E16 E2
Socio*Economic Classification
Occupation Education
Illiterate
?ess
t&an )
yrs in
sc&ool
0*1
yrs of
sc&ool
Sc&ool
certificate
Some
colle(e
Graduate
;ost*
(raduate
3>
S$illed E2 E! B C C @2 @2
Hns$illed E2 E2 E! B B B B
S&op owner B B C @2 @2 +2 +2
;etty trader E2 B B C C @2 @2
Employer of*
+bove !
persons
@! @! +2 +2 +! +! +!
@elow !
persons
C @2 @2 @! +2 +! +!
:one B C @2 @! +2 +! +!
Cler$ B B B C @2 @! @!
Supervisor B B C C @2 @! +2
;rofessional B B B @2 @! +2 +!
Senior
executive
@! @! @! @! +2 +! +!
Cunior
executive
C C C @2 @! +2 +2
Source6 Indian readers&ip survey .I5S/
Sections + I @ refer to -i(&*class* constitutes over a 4uarter of urban
population
Sec C refers to Middle*class** constitutes 2!' of t&e urban population
3B
Sections B I E refer to ?ow*class** constitutes over &alf t&e urban
population
-o understand t+e ta"'e6 consider an exam!'eA 4 trader w+ose mont+'y +ouse+o'd
income 9MEI: is more t+an t+at of a !erson in section 4 cannot "e inc'uded in t+is
%EC "ecause +is educationa' 8ua'ification or occu!ations do not 8ua'ify +im for
inc'usion.
%ec C constitutes +ouse+o'ds w+ose C+ief ?a0e Earners are em!'oyed asA
S$illed wor$ers ""'
;etty traders !2'
Cler$>Supervisor "<'
S&op owners !3'
3;4t+ of t+em +ave studied ti'' 10t+ or 12t+ c'ass w+i'e t+e remainin0 1;4t+ +ave
studied ti'' ,t+ c'ass.
Hess t+an +a'f of t+e C+ief ?a0e Earners of +ouse+o'ds "e'on0in0 to sections I #
E are uns(i''ed wor(ers. 1etty -raders are 1*@6 w+i'e %(i''ed ?or(ers are a"out
2*@.
More t+an *0@ of t+e !o!u'ation of u!!er strata consumers is 'ivin0 in
t+e to! ) cities. -+ose to! ) cities are Mum"ai6 Bo'(ata6 Ie'+i6 C+ennai6
4+meda"ad6 =an0a'ore6 and Eydera"ad. ?it+ increase in economic !ros!erity6
t+is !o!u'ation 9u!!er strata consumers: is 0rowin0 at 10 !ercent annua''y.
3C
-+e rura' area is se0re0ated in toA .16 .26 .36 .4.
Education of
c&ief wa(e
earner
Type of -ouse
;ucca Semi*pucca 8uc&c&a
;rofessional
de(ree
5! 52 5"
Graduation> ;G 5! 52 5"
Colle(e 5! 52 5"
SSC>-SC 52 5" 5"
Class )*Class 1 5" 5" 5)
Hp to class ) 5" 5" 5)
Self*learnin( 5" 5) 5)
Illiterate 5) 5) 5)
+(e demo(rap&ics
India is a very youn0 nation6 if com!ared wit+ some advanced and
deve'o!ed countries. <ear'y twoD t+irds of its !o!u'ation is "e'ow t+e a0e of 36
<D
and near'y 0 @ is "e'ow 2.
Mar(eters ex!'ain t+at t+e "oom in t+e consum!tion 'eve' and 'eisure re'ated
ex!enditure is "ecause of t+is youn0 !o!u'ation. It wi'' +ave a si0nificant im!act
over t+e consumer 0oods mar(et. In addition to t+at6 it is ex!ected t+at t+is wi''
0enerate trade o!!ortunities and continuous investment in t+e economy. -+ere is
+u0e !otentia' for furt+er consum!tion of 0oods and services due to t+e increased
'eve' of dis!osa"'e income. -+e ex!enditure on essentia' 0oods and services +as a
+i0+er s+are in deve'o!in0 countries as com!ared wit+ t+at of deve'o!ed
countries.
+(e distribution if Indian population .In Millions/
Jear> +(e 2!2 2! !112
@elow ) yrs
!!",0 !3,0 !!1,0
0*!) yrs
22!,2 2"1,! 2"",2
!0*!1 yrs
!22,) !1, 1,<
2*") yrs
2<1,! 2)2,3 22)
"0*0) yrs
2"1,2 2<," !<3,!
00 I above
!!3,< !!,< 33,<
Total
!1),! !!2,) 1"),2
Consumption Trends
Food Essentials
)0,23'
<1
Essential Services .water9 power9
rent9 and fuels/
!,!'
Clot&in(
),1'
Footwear
,2"'
Medicare
),20'
Transport I Communication
!),0!'
5ecreation9 Education9 and
Culture ?ess t&an )'
-ome Goods
",20'
Geo(rap&ical dispersion
-+ere is 'ar0e difference in economic !ros!erity 'eve's amon0 severa' states in
India6 'in(ed to t+e wea't+ creation from trade6 industria'6 and a0ricu'tura'
deve'o!ment. -+ere are !oor districts in many states6 c'assified accordin0 to t+eir
mar(et !otentia'. India +as 00 districts6 out of w+ic+ 10 districts 9cate0ory 4:
and next 10 districts 9cate0ory =: account for )*@ and 1@ of t+e nationa'
mar(et !otentia' res!ective'y. .emainin0 200 districts 9cate0ory C: are "ac(ward
and account for on'y )@ of nationa' mar(et !otentia'. Cate0ory C districts +ave
40@ of t+e 0eo0ra!+ica' s+are.
<3
+nalysis
1. ?+ic+ soa! u !refer to useL
-+e reaction of !eo!'e towards various %O41 "rands can "e ta"u'ated in
t+e fo''owin0 mannerA
@rands ?ux Bettol ?ifebuoy ot&ers
;ercenta(e "2 22 !3 2)

In t+e survey t+at t+e researc+er conducted6 it cou'd easi'y "e
conc'uded t+at HFM6 t+e !roduct of EFH was +i0+'y in demand. HFM6 t+e
!roduct of EFH covers 3$@ of t+e mar(et s+are. 4fter HFM6 t+e ot+er "rands
9EMCE1- HFM6 IE--OH6 HIFE=FO>: covers 24@ of t+e mar(et s+are. -+is is
<<
t+en fo''owed "y IE--OH6 t+e !roduct of .ECBI-- =E<CBI%E. wit+ a mar(et
s+are of 22@6 w+ic+ is t+en fo''owed "y HIFE=FO>6 t+e !roduct of EFH wit+ a
mar(et s+are of 1*@.

-+is data can "e 0ra!+ica''y ex!'ained wit+ t+e +e'! of t+e fo''owin0 "ar 0ra!+A
<@
0
5
10
15
20
25
30
35
40
percent age
brands
demand of soap brands
lux
det t ol
lifebuoy
ot hers
2. ?+ic+ !ac( u !refer to useL

<A
In order to determine t+e income !attern of t+e consumers6 it was
necessary for t+e researc+er to distri"ute t+e consumers on t+e "asis of t+eir
demand for t+e various !ac(s of %O41 "rands avai'a"'e in t+e mar(et.
Eowever6 t+e reaction of !eo!'e towards various !ac(s of %O41 can "e
ta"u'ated in t+e fo''owin0 mannerA
;ac$s of soaps Sin(le pac$ Family pac$ ." in !/
;ercenta(e 02 ))
In t+e survey t+at t+e researc+er conducted6 s+e tried to differentiate
amon0st !eo!'e6 wit+ "e'ow avera0e +ouse+o'd income6 avera0e +ouse+o'd
income # a"ove +ouse+o'd income. -+is c'assification can "e done on t+e
"asis of t+e dai'y ex!enditure t+at !eo!'e ma(e. $@ consumers demand sin0'e
!ac(. 44@ consumers demand fami'y !ac(s i.e. 3 in 1 !ac(.


-+is data can "e 0ra!+ica''y ex!'ained wit+ t+e +e'! of t+e fo''owin0 "ar
0ra!+A
<?
0
10
20
30
40
50
60
percent age
packs preferred by
cust omers
demand of packs of soap
single pack
family pack ( 3 in 1
1. ?+ic+ tea u !refer to useL
-+e reaction of !eo!'e towards various -E4 "rands can "e ta"u'ated in t+e
fo''owin0 mannerA
@rands Tata Tea @roo$e TaA Ma&al Ot&ers
<>
@ond
;ercenta(e "2 23 !3 22
In t+e survey t+at t+e researc+er conducted6 it cou'd easi'y "e conc'uded
t+at -4-4 -E46 t+e !roduct of -4-4 +as a mar(et s+are of 32@. -+is is
fo''owed "y6 =.OOBE =O<I6 wit+ a mar(et s+are of 2*@. Fo''owed "y ot+er
"rands 9EMCE1- -4-4 -E46 =.OOBE =O<I6 -4J M4E4H: wit+ a mar(et
s+are of 22@. -+is is fina''y fo''owed "y -4J M4E4H6 t+e !roduct of EFH
w+ic+ +o'ds1*@ of t+e mar(et s+are.

-+is data can "e 0ra!+ica''y ex!'ained wit+ t+e +e'! of t+e fo''owin0 "ar 0ra!+A
<B
0
5
10
15
20
25
30
35
percent age
brands
demand of t ea brands
t at a t ea
brooke bond
t a! mahal
ot hers
2. ?+ic+ tea !ac( u !refer to useL
<C
In order to determine t+e income !attern of t+e consumers6 it was
necessary for t+e researc+er to distri"ute t+e consumers on t+e "asis of t+eir
demand for t+e various !ac(s of -E4 "rands avai'a"'e in t+e mar(et.
Eowever6 t+e reaction of !eo!'e towards various -E4 !ac(s can "e
ta"u'ated in t+e fo''owin0 mannerA
TE+ pac$s Sac&et Medium pac$ ?ar(e pac$
percenta(e )3 "2 2
In t+e survey t+at t+e researc+er conducted6 s+e tried to differentiate
amon0st t+e !eo!'e6 wit+ "e'ow avera0e +ouse+o'd income6 avera0e +ouse+o'd
income # a"ove +ouse+o'd income. -+is c'assification can "e done on t+e
"asis of t+e dai'y ex!enditure t+at !eo!'e ma(e. Eowever6 it can "e conc'uded
t+at sac+ets are most common'y used "y t+e !eo!'e .i.e.6 4*@ consumers
demand sac+et !ac(s. 32@ consumers demand medium !ac(.20@ consumers
demand 'ar0e !ac(.
-+is data can "e 0ra!+ica''y ex!'ained wit+ t+e +e'! of t+e fo''owin0
dia0ramA
@D
0
10
20
30
40
50
percent age
packs preferred by cust omers
demand of t ea packs
sachet
medium pack
large pack
3. ?+ic+ toot+ !aste u !refer to useL
In t+e initia' years6 t+e rura' consumers !referred toot+ !owders6
datoons etc. =ut from t+e 'ast decade6 t+e !reference of consumers towards
@1
toot+!aste +as "een c+an0ed. 4 +u0e num"er of toot+!astes of different
com!anies are so'd in rura' mar(et.
Eowever6 t+e reaction of !eo!'e towards various -OO-E 14%-E%
can "e ta"u'ated as fo''owsA
@rands ;epsodent Col(ate Close Hp Ot&ers
;ercenta(e 2< "0 22 !2
In t+e survey t+at t+e researc+er conducted6 it cou'd easi'y "e seen t+at
COHG4-E6 t+e !roduct of COHG4-E 14HMOHI2E is t+e mar(et 'eader6
w+ic+ covers 3@ of t+e tota' mar(et. 4fter t+at6 1E1%OIE<-6 t+e !roduct of
EFH is demanded "y t+e customers6 w+ic+ covers 2)@ of t+e mar(et s+are.
Fo''owed "y CHO%E 3 F16 t+e !roduct of EFH is demanded "y t+e customers6
w+ic+ covers 22@ of t+e mar(et s+are. ?+ic+ is t+en fo''owed "y ot+ers
"rands 9EMCE1- 1E1%OIE<-6 COHG4-E6 CHO%E D F1:6 w+ic+ covers
1$@ of t+e tota' mar(et s+are.
-+is data can "e 0ra!+ica''y ex!'ained wit+ t+e +e'! of t+e fo''owin0
"ar 0ra!+A
@3
0
5
10
15
20
25
30
35
percent age
brands
demand of t oot h past e
pepsodent
colgat e
close up
ot hers
4. ?+ic+ !ac( u !refer to useL
@<
In order to determine t+e income !attern of t+e consumers6 it was necessary for
t+e researc+er to distri"ute t+e consumers on t+e "asis of t+eir demand for t+e
various !ac(s of -OO-E 14%-E "rands avai'a"'e in t+e mar(et.
Eowever6 t+e reaction of !eo!'e towards various -OO-E 14%-E !ac(s
can "e ta"u'ated in t+e fo''owin0 mannerA
Toot& paste
pac$
Small pac$ Medium pac$ Family pac$
;ercenta(e ") )3 !3
In t+e survey t+at t+e researc+er conducted6 s+e tried to differentiate
amon0st t+e !eo!'e6 wit+ "e'ow avera0e +ouse+o'd income6 avera0e +ouse+o'd
income # a"ove +ouse+o'd income. -+is c'assification can "e done on t+e "asis of
t+e dai'y ex!enditure t+at !eo!'e ma(e. Eowever6 it can "e conc'uded t+at 34@
consumers demand sma'' !ac(s. 4*@ consumers demand medium !ac(s. 1*@
consumers demand 'ar0e !ac(.
-+is data can "e 0ra!+ica''y ex!'ained wit+ t+e +e'! of t+e fo''owin0
0ra!+A
@@
0
10
20
30
40
50
percent age
packs preferred by cust omers
demand of packs of t oot h past e
small pack
medium pack
family pack
. ?+ic+ deter0ent u !refer to useL
-+e reaction of !eo!'e towards various IE-E.GE<- "rands can "e
ta"u'ated in t+e fo''owin0 mannerA
@A
@rands Surf 5in Tide Ot&ers
;ercenta(e 2< "0 22 !2
In t+e survey t+at t+e researc+er conducted6 it cou'd "e easi'y
conc'uded t+at .I<6 t+e !roduct of EFH ca!tures 3@ of t+e tota' mar(et
s+are. -+is is fo''owed "y %F.F6 t+e !roduct of EFH w+ic+ +as a mar(et
s+are of 2)@. -+is is fo''owed "y -IIE6 t+e !roduct of 1.OC-E. #
G4M=HE w+ic+ +as a mar(et s+are of 2)@. -+is is fina''y fo''owed "y ot+er
"rands 9EMCE1- %F.F6 .I<6 -IIE: w+ic+ ca!tures 1$@ of t+e mar(et s+are.
-+is data can "e 0ra!+ica''y ex!'ained wit+ t+e +e'! of t+e fo''owin0
"ar 0ra!+A
@?
0
5
10
15
20
25
30
35
percent age
brands
demand of det ergent s
surf
rin
t ide
ot hers
$. ?+ic+ !ac( u !refer to useL
In order to determine t+e income !attern of t+e consumers6 it was necessary for
t+e researc+er to distri"ute t+e consumers on t+e "asis of t+eir demand for t+e
various !ac(s of IE-E.GE<- "rands avai'a"'e in t+e mar(et.
@>
Eowever6 t+e reaction of !eo!'e towards various IE-E.GE<- !ac(s
can "e ta"u'ated in t+e fo''owin0 mannerA
Beter(ent pac$s Sac&et Medium pac$ Family pac$
;ercenta(e )" 2< "
In t+e survey t+at t+e researc+er conducted6 s+e tried to differentiate
amon0st t+e !eo!'e6 wit+ "e'ow avera0e +ouse+o'd income6 avera0e +ouse+o'd
income # a"ove +ouse+o'd income. -+is c'assification can "e done on t+e "asis of
t+e dai'y ex!enditure t+at !eo!'e ma(e. Eowever6 43@ consumers demand sac+et
!ac(s. 30@ consumers demand fami'y !ac(s. 2)@ consumers demand medium
!ac(s.
-+is data can "e 0ra!+ica''y ex!'ained wit+ t+e +e'! of t+e fo''owin0
"ar 0ra!+A
@B
0
5
10
15
20
25
30
35
40
45
percent age
packs preferred by cust omers
demand of det ergent packs
sachet
medium pack
family pack
). ?+ic+ s+am!oo u !refer to useL
-+e reaction of !eo!'e towards various %E4M1OO "rands can "e ta"u'ated
in t+e fo''owin0 mannerA
@C
@rands Clinic plus Sunsil$
-ead I
s&oulders
Ot&ers
;ercenta(e "" 20 23 !)
In t+e survey6 t+at t+e researc+er conducted it can easi'y "e conc'uded
t+at CHI<IC 1HF%6 t+e !roduct of EFH6 ca!tures t+e ma/or !ortion of t+e mar(et
wit+ a mar(et s+are of 33@. -+is is fo''owed "y EE4I # %EOFHIE.%6 t+e
!roduct of 1.OC-E. # G4M=HE w+ic+ +o'ds 2*@ of t+e mar(et s+are. -+is is
fo''owed "y %F<%IHB6 t+e !roduct of EFH w+ic+ +o'ds 2@ of t+e mar(et s+are.
Fina''y fo''owed "y ot+er "rands 9EMCE1- CHI<IC 1HF%6 %F<%IHB6 EE4I #
%EOFHIE.%: wit+ a mar(et s+are of 14@.

-+is data can "e 0ra!+ica''y ex!'ained wit+ t+e +e'! of t+e fo''owin0 "ar 0ra!+A
AD
0
5
10
15
20
25
30
35
percent age
brands
demand of shampoo
clinic plus
sunsilk
head " shoulders
ot hers
*. ?+ic+ !ac( u !refer to useL
In order to determine t+e income !attern of t+e consumers6 it was necessary for
t+e researc+er to distri"ute t+e consumers on t+e "asis of t+eir demand for t+e
various !ac(s of %E4M1OO "rands avai'a"'e in t+e mar(et.
A1
Eowever6 t+e reaction of !eo!'e towards various %E4M1OO !ac(s can "e
ta"u'ated in t+e fo''owin0 mannerA
S&ampoo
pac$s
sac&et Small pac$
Medium
pac$
Family pac$
;ercenta(e 2" "2 23 !<
In t+e survey t+at t+e researc+er conducted6 s+e tried to differentiate
amon0st t+e !eo!'e6 wit+ "e'ow avera0e +ouse+o'd income6 avera0e +ouse+o'd
income # a"ove +ouse+o'd income. -+is c'assification can "e done on t+e "asis of
t+e dai'y ex!enditure t+at !eo!'e ma(e. Eowever6 32@ consumers demand
%M4HH 14CB. 2*@ consumers demand medium !ac(. 1)@ consumers demand
'ar0e !ac(s.
-+is data can "e 0ra!+ica''y ex!'ained wit+ t+e +e'! of t+e fo''owin0
"ar 0ra!+A
A3
0
5
10
15
20
25
30
35
percent age
packs preferred by cust omers
demand of shampoo packs
sachet
small pack
medium pack
large pack
,. ?+ic+ "iscuits u !refer to useL
-+e reaction of !eo!'e towards various =I%CFI-% "rands can "e ta"u'ated in t+e
fo''owin0 mannerA
A<
@rands Marie (old Good Bay ;arle G Ot&ers
;ercenta(e 2) "3 2! !<
In t+e survey6 t+at t+e researc+er conducted6 it can easi'y "e conc'uded
t+at GOOI I4>6 t+e !roduct of =.I-4<<I4 +o'ds a ma/or mar(et s+are of
3*@. -+is is fo''owed "y M4.IE GOHI6 anot+er !roduct of =.I-4<<I4 w+ic+
+o'ds 24@ of t+e mar(et s+are. 4fter t+at6 14.HED G6 t+e !roduct of 14.HE6
+o'ds 21@ of t+e mar(et s+are. -+is is fo''owed "y ot+er "rands 9EMCE1-
M4.IE GOHI6 GOOI I4>6 14.HED G: w+ic+ +o'd a mar(et s+are of 1)@.

-+is data can "e 0ra!+ica''y ex!'ained wit+ t+e +e'! of t+e fo''owin0 "ar 0ra!+A
A@
0
5
10
15
20
25
30
35
40
percent age
brands
demand of biscuit s
marie gold
good day
parle #
ot hers
10.w+ic+ +air oi' u !refer to useL
-+e reaction of !eo!'e towards various E4I. OIH "rands can "e ta"u'ated in t+e
fo''owin0 mannerA
AA
@rands ;arac&ute Babur +mla
Babur
%ati$a
Ot&ers
;ercenta(e "< 21 !1 !0
In t+e survey6 t+at t+e researc+er conducted6 it can easi'y "e conc'uded
t+at 14.4CEF-E6 t+e !roduct of ME.ICO ca!tures 3)@ of t+e tota' mar(et
s+are. -+is is fo''owed "y I4=F. 4MH46 t+e !roduct of I4=F. w+ic+
ca!tures 2,@ of t+e tota' mar(et s+are. -+is is fo''owed "y I4=F. 24-IB46
anot+er !roduct of I4=F. w+ic+ ca!tures 1,@ of t+e mar(et. 4nd after t+at6
fo''owed "y ot+er "rands 9EMCE1- 14.4CEF-E6 I4=F. 4MH46 I4=F.
24-IB4: ca!tures 1@ of t+e mar(et s+are.

-+is data can "e 0ra!+ica''y ex!'ained wit+ t+e +e'! of t+e fo''owin0 "ar
0ra!+A
A?
0
5
10
15
20
25
30
35
40
percent age
brands
demand of hair oil
parachut e
dabur amla
dabur $at ika
ot hers
11.?+ic+ !ac( u !refer to useL
In order to determine t+e income !attern of t+e consumers6 it was
necessary for t+e researc+er to distri"ute t+e consumers on t+e "asis of t+eir
demand for t+e various !ac(s of E4I. OIH "rands avai'a"'e in t+e mar(et.
A>
Eowever6 t+e reaction of !eo!'e towards various E4I. OIH !ac(s
can "e ta"u'ated in t+e fo''owin0 mannerA
-air oil pac$s Small pac$ Medium pac$ ?ar(e pac$
;ercenta(e "2 )! 2<
In t+e survey t+at t+e researc+er conducted6 s+e tried to differentiate
amon0st t+e !eo!'e6 wit+ "e'ow avera0e +ouse+o'd income6 avera0e +ouse+o'd
income # a"ove +ouse+o'd income. -+is c'assification can "e done on t+e "asis of
t+e dai'y ex!enditure t+at !eo!'e ma(e. Eowever6 41@ consumers demand
medium !ac(s. 4fter t+at6 32@ consumers demand sma'' !ac(. 2)@ consumers
demand 'ar0e !ac(s.

-+is data can "e 0ra!+ica''y ex!'ained wit+ t+e +e'! of t+e fo''owin0 "ar 0ra!+A
AB
0
5
10
15
20
25
30
35
40
45
percent age
packs preferred by cust omers
demand of packs of hair oil
small pack
medium pack
large pack
12.?+ic+ cream u !refer to useL
-+e reaction of !eo!'e towards various C.E4M "rands can "e ta"u'ated in t+e
fo''owin0 mannerA
AC
@rands ;ond#s
Fair I
lovely
+yur Ot&ers
;ercenta(e 23 "2 !) 22
In t+e survey6 t+at I conducted6 it can easi'y "e conc'uded t+at F4I. #
HO2EH>6 t+e !roduct of EFH6 +o'ds t+e ma/or mar(et wit+ a s+are of 32@. -+is
is fo''owed "y6 1O<I&s6 anot+er !roduct of EFH6 w+ic+ +o'ds 2*@ of t+e mar(et
s+are. -+is is fo''owed "y6 ot+er "rands 9EMCE1-6 1O<I&s6 F4I. # HO2EH>
# 4>F.:6 w+ic+ ca!tures 2$@ of t+e mar(et s+are. -+is is fo''owed "y 4>F.6
t+e "rand of 4>F. 4C4IEM> OF <4-F.4H =E4F-> 944<=: w+ic+ +o'ds
14@ of t+e tota' mar(et s+are.
-+is data can "e 0ra!+ica''y ex!'ained wit+ t+e +e'! of t+e fo''owin0 "ar
0ra!+A
?D
0
5
10
15
20
25
30
35
percent age
brands
demand of creams
ponds
fair " lo$ely
ayur
ot hers
13.?+ic+ coffee u !refer to useL
-+e reaction of !eo!'e towards various COFFEE "rands can "e ta"u'ated in t+e
fo''owin0 mannerA
?1
@rands @ru :estle :escafe Ot&ers
;ercenta(e 22 "2 "2 !
In t+e survey6 t+at t+e researc+er conducted6 it can "e easi'y conc'uded
t+at a'' t+e "rands are facin0 tou0+ com!etition. <E%-HE6 t+e !roduct of
<E%-HE %.4. # <E%C4FE6 anot+er !roduct of <E%-HE %.4.6 s+ares e8ua'
mar(et s+are of 32@ eac+. -+is means t+at t+ey are in a very tou0+ com!etition.
-+is is fo''owed "y =.F6 t+e !roduct of EFH w+ic+ +o'ds6 2$@ of t+e mar(et
s+are. ?+i'e t+e ot+er "rands +o'd on'y 10@ of t+e mar(et s+are.
-+is data can "e 0ra!+ica''y ex!'ained wit+ t+e +e'! of t+e fo''owin0 "ar
0ra!+A
?3
0
5
10
15
20
25
30
35
percenat ge
brands
demand of coffee
bru
nest le
nescafe
ot hers
Conclusions
In t+is re!ort6 it can very easi'y "e conc'uded t+at EFH6 +o'ds
ma/or !ortion of t+e FMCG mar(et. It +o'ds ma/or s+ares in t+e soa!6 deter0ent6
?<
s+am!oo # cream&s cate0ory. EFH&s !roducts are main'y in demand6 "ecause
t+ey !rovide t+ese !roducts in different !ac(s. -+ey consider t+e fact t+at rura'
consumers do not +ave t+at muc+ money to "e s!ent on t+ese !roducts. %o6 t+ey
!refer "uyin0 t+e sma'' or t+e medium !ac(s. Eowever6 'ar0e or fami'y !ac(s are
sti'' "een "ou0+t "y few consumers6 w+o are from a we'' 3 off fami'ies.
In t+e case of -E46 -4-4 +o'ds a ma/or s+are. In t+e case of
COFFEE6 <E%-HE # <E%C4FE +o'ds t+e ma/or s+are. .ura' consumers favor
-4-4 "ecause it is an o'd or0ani7ation # it +as 0ained a 'ot of =.4<I E5FI->
w+ic+ fina''y creates =.4<I HO>4H->. In t+ese !roducts6 consumers do 0et
"rand 'oya'6 "ecause t+ey do not want to ta(e a ris( wit+ t+eir tastes. %o t+ey
!refer stic(in0 to one "rand. -+ese or0ani7ations su!!'y t+eir !roducts in various
!ac(s 9sma''6 medium # 'ar0e:6 considerin0 t+e "uyin0 ca!acity of t+eir
consumers.
4s in t+e case of =I%CFI-%6 =.I-4<<I4 +o'ds t+e ma/or mar(et
s+are. .ura' consumers favor =.I-4<<I4 "ecause it is an o'd or0ani7ation # it
+as 0ained a 'ot of =.4<I E5FI-> w+ic+ fina''y creates =.4<I HO>4H->.
In case of =I%CFI-%6 consumers do 0et "rand 'oya'6 "ecause t+ey do not want to
ta(e a ris( wit+ t+eir tastes. %o t+ey !refer stic(in0 to one "rand. -+ese
or0ani7ations su!!'y t+eir !roducts in various !ac(s 9sma''6 medium # 'ar0e:6
considerin0 t+e "uyin0 ca!acity of t+eir consumers.
In t+e case of -OO-E 14%-E%6 COHG4-E 14HMOHI2E +o'ds a
ma/or mar(et s+are. Consumers are very concerned a"out t+eir +ea't+6 so if any
!roduct suits t+em t+ey !refer stic(in0 to t+at !roduct. 4nd t+is !roduct is a'so
?@
avai'a"'e in various !ac(s6 so rura' consumers can use it accordin0 to t+eir "uyin0
ca!acity.
In t+e case of E4I. OIH%6 ME.ICO +o'ds t+e ma/or mar(et s+are.
ME.ICO is a muc+ (nown or0ani7ation # its !roduct 14.4CEF-E +as reac+ed
a'' t+e !'aces. %o it is a (nown !roduct6 w+ic+ +as created a 0ood amount of
0oodwi'' for t+e or0ani7ation. Consumers +ave confidence # trust in t+eir
!roduct. -+erefore6 t+ey !refer "uyin0 it.
Su((estions I recommendations
-+e researc+er wou'd 'i(e to su00est t+e fo''owin0 !oints6 so t+at t+e
or0ani7ations can easi'y se'' t+eir !roducts to t+eir consumersA
1. Eowever6 t+e demand of a !roduct is a'so affected "y its 'ife cyc'e. If t+e
!roduct is in t+e introduction sta0e6 t+en it wi'' definite'y ta(e some time to
ca!ture t+e mar(et6 "ecause in t+e introduction sta0e6 consumers are not
?A
muc+ aware a"out t+e !roduct. -+erefore6 it&s t+e res!onsi"i'ity of t+e
or0ani7ation to create awareness amon0st t+e consumers.
2. -+ey s+ou'd ada!t ri0orous mar(etin0 strate0ies6 in order to sustain in t+e
mar(et.
3. -+ere is immense com!etition in t+is sector. -+erefore6 t+e or0ani7ations
s+ou'd try to 0ain com!etitive advanta0e a0ainst t+eir com!etitor&s.
4. -+ey s+ou'd try to reac+ as many !eo!'e as !ossi"'e.
. For t+e or0ani7ations t+at are not muc+ !o!u'ar amon0st t+e consumers6
s+ou'd ado!t %a'es 1romotion6 as t+eir mar(etin0 strate0ies.
$. 4!!'ication of 44&s +as a'so "ecome an im!ortant tas( for a'' t+e
or0ani7ations.


.K)+G +vailability9 +ffordability9 +cceptability9 +wareness/
5eferences
1. Bearney6 4 -6 CII 3 .e!ort6 92000:
2. 1ur"a "asu6 researc+ on 'ivin0 sty'e of rura' consumers6 92004:6
!0. no. D*.
??
3. -o0natta 1radee!6 economic 0rowt+ on a0ricu'ture sector6 92003:6 !0
no. $D10.
4. 4it+a' B .a/es+6 im!ortance # 0rowt+ of rura' mar(ets6 92004:6 !0
no. *D12.
. Center for Monitorin0 Indian Economy 9CMIE:
$. %tatistica' Out'ine of India 92001D02:6 <C4E.
). <ationa' Counci' of 4!!'ied Economic .esearc+ 9<C4E.:
B6 Indian readers+i! survey 9I.%:
,. +tt!A;;www.u!0ov.nic.in;u!info;census01;cen01D1.+tm
10. Huc(now Ieve'o!ment 4ut+ority
116 +tt!A;;www.nau(ri+u".com;india;fmc0;overview;
136 +tt!A;;www.nau(ri+u".com;india;fmc0;
1<6 +tt!A;;www.nau(ri+u".com;india;fmc0;consumerDc'ass;
1@6 +tt!A;;www.nau(ri+u".com;india;fmc0;consumerD c'ass;income;
1A6 +tt!A;;www.nau(ri+u".com;india;fmc0;consumerDc'ass;socioD
economic;
1$. +tt!A;;www.nau(ri+u".com;india;fmc0;consumerDc'ass;a0e;
1>6 +tt!A;;www.nau(ri+u".com;india;fmc0;consumerDc'ass;0eo0ra!+y;
1*. +tt!A;;en.wi(i!edia.or0;wi(i;FastNmovin0NconsumerN0oods
?>
1,. O44P 4vai'a"i'ity6 4fforda"i'ity6 4cce!ta"i'ity6 4wareness
Duestionnaire
1. nameA
2. occu!ationA
3. mont+'y sa'aryA
a. 'ess t+an 106000
". 106000 3 26000
c. 26000 3 06000
d. More t+an 06000
4. addressA
?B
. !+one no.A
$. w+ic+ soa! u !refer to useL
a. Hux
". detto'
c. 'ife"uoy
d. ot+ers
). w+ic+ !ac( u !refer to useL
a. sin0'e
". fami'y !ac( 9 3 in 1:
*. w+ic+ tea u !refer to useL
a. tata tea
". "roo(e "ond
c. ta/ ma+a'
d. ot+ers
,. w+ic+ !ac( u !refer to useL
a. sac+et
". medium !ac(
c. 'ar0e !ac(
10.w+ic+ toot+ !aste u !refer to useL
a. !e!sodent
". co'0ate
c. c'ose 3 u!
d. ot+ers
11.w+ic+ !ac( u !refer to useL
a. sma'' !ac(
". medium !ac(
c. fami'y !ac(
12.w+ic+ deter0ent u !refer to useL
?C
a. surf
". rin
c. tide
d. ot+ers
13.w+ic+ !ac( u !refer to useL
a. sac+et
". medium !ac(
c. 'ar0e !ac(

14.w+ic+ s+am!oo u !refer to useL
a. c'inic !'us
". sunsi'(
c. +ead # s+ou'ders
d. ot+ers
1.w+ic+ !ac( u !refer to useL
a. sac+et
". sma'' !ac(
c. medium !ac(
d. 'ar0e !ac(
1$.w+ic+ "iscuits u !refer to useL
a. marie 0o'd
". 0ood day
c. !ar'e D G
d. ot+ers
1).w+ic+ +air oi' u !refer to useL
a. !arac+ute
". da"ur am'a
c. da"ur vati(a
d. ot+ers
1*.w+ic+ !ac( u !refer to useL
a. sma'' !ac(
>D
". medium !ac(
c. 'ar0e !ac(
1,.w+ic+ cream u !refer to useL
a. !onds
". fair # 'ove'y
c. ayur
d. ot+ers
20.w+ic+ coffee u !refer to useL
a. "ru
". nest'e
c. <escafe
d. ot+ers

>1