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$6 t+e sector +as witnessed a dou"'eDdi0it 0rowt+ in !rofits and revenues. -+e sector +as re0istered an u! trend in 0rowt+ across cate0ories6 suc+ as +ea't+ su!!'ement6 s+am!oo6 toot+!aste6 +air oi's6 and mos8uito re!e''ant6 as s+own in ta"'e "e'owA Sales %alue Growt& ' Cate(ories 2)*2!" 2!"*2!2 +pr,2!2*Sept, 2!2 -ealt& Supplement .C&yawanpras&/ *0' ' 2"' S&oo !' 2"' !1' Toot&paste 0' 2' !2' -air Oils 1' !3' 2"' Mos4uito 5epellant !"' !' 21' 1D Source6 CII 7 + T 8earney 5eport9 .2/ Sector Financials In millions
"!*"*2!2 "!*"*2!" "!*"*2) :et Sales Sales Growt& !2)9!12 !,3' !)392)! 2,' !)09"3 * ;rofit after Tax ;+T Growt& !19010 !2,2' !<9! *2),2' 2!93 * Mar$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&oo 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