Beruflich Dokumente
Kultur Dokumente
ON
“ADVERTISEMENT STRATEGY FOR FAST MOVING CONSUMER GOODS”
Submitted to
Punjab Technical University Jalandhar In
Partial fulfillment of the requirement for
the award of the degree of Masters in
Business Administration
Submitted by: Project guide:
JATINDER KUMAR MR.DINESH
(94512236933)
MBA IV-A
(Session 2009-20011)
Hereby declare that the final project report entitled “ADVERTISEMENT STRATEGY
FOR FAST MOVING CONSUMER GOODS” submitted for the degree of Master of
Business Administration, is my original work and the project report has not formed the
basis for the award of any diploma, degree, associate ship, fellowship or similar other
titles. It has not been submitted to any other university or institution for the award of any
degree or diploma.
:
JATINDER KUMAR
94512236933
MBA-IV A
CERTIFICATE
To best of my knowledge the report is original and has not been copied or submitted
anywhere else. It is an independent work done by him.
MR.DINESH
GJIMT
MOHALI
ACKNOWLEDGEMENT
Survey is an excellent tool for learning and exploration. No classroom routine can
substitute which is possible while working in real situations. Application of theoretical
knowledge to practical situations is the bonanzas of this survey.
Without a proper combination of inspection and perspiration, it’s not easy to achieve
anything. There is always a sense of gratitude, which we express to others for the help and
the needy services they render during the different phases of our lives. I too would like to
do it as I really wish to express my gratitude toward all those who have been helpful to
me directly or indirectly during the development of this project.
First of all I wish to express my profound gratitude and sincere thanks to my esteemed
learned Director Dr.VIMAL AGGARWAL, who allowed me to conduct the survey.
I would like to thank my professor DINESH who was always there to help and guide
me when I needed help. His perceptive criticism kept me working to make this project
more full proof. I am thankful to him for his encouraging and valuable support. Working
under him was an extremely knowledgeable and enriching experience for me. I am very
thankful to him for all the value addition and enhancement done to me.
JATINDER KUMAR
MBA
CONTENTS
Acknowledgement
BIBLIOGRAPHY
APPENDIX
QUESTIONNAIRES
ADVERTISEMENT EFFECT ON FAST MOVING CONSUMER
GOODS
In the mundane sense , the advertisement of fast moving consumer goods are the most
pertinent. The ads of like toiletries and the other items of daily use are most projected ads.
The major corporate giants like Hindustan lever ltd , dabur India ltd , procter and Gamble,
Hygiene & healthcare ltd coke & pepsi etc . are the major player in the market . the ads
are presented so that with their impact the consumer are inclined to buy the product . ads
by business firms are use to achieve its communication objectives with a target group.
The phase impact of ads and ad effevtiveness are synonymous . now what is ad
effectiveness ? effectiveness of ad cannot be measured with a mathematical or empirical
formula . ads alone cannot sell the product . There are many other factors- product quality
, price , packaging , product characteristics , easy availability etc . which contribute
toward the sale of the product.
Consumer ‘s decision to purchase the product is influenced by its ads . so ads are
projected in such a way that it makes the attitude of the people favorable toward the
product . so the selection of media , ad script , copy test are done by the producer very
carefully and effectively . pretestingof ads is done through various ways.
Paired comparison
Portfolio test
Trailer test etc
After all such things ads come in ti fore, how if effect the decision and how much the
decision are effected are judged after that . tests are made by the ad producer to know its
real effects . these tests are :
Penetration test
Error-in-recognition measurement
Triple association test etc.
Other way to judge ad effectiveness is through questionnaire survey.
Ad stimuli come in consumer mind and how consumer react to it depends upon consumer
black box . consumer decision to purchase is shaped by culture, sub culture , social
group , reference group , family , age , life cycle stage , occupation , learning , life style ,
economic condition etc . these effects are studied concentrating on :
Toothpaste
Shampoo
The study gives the knowledge about the fast moving consumer good industry, major
player in indian market and budget effect on FMCGs.
RURAL MARKET
Rural areas where nearly 70 percent of Indians live , have witnessed rapid market growth
in recent times , driven largely by agricultural growth , income distribution , and inroads
made by audio-visual media. The rural share of the market for durables goods has grown
steadily over the last few years , from 54.2 percent in 1980-90 to 57.9 percent in 1995-
1996 , while for a large variety of items such as bicycles , mechanical wrist watches ,
radio/transistors etc., the share of the rural market was in excess of 75 percent.
The economic liberalization has given enormous opportunities ti the fast moving
consumer goods than any other segment . the increased penetration of several brands to
the rural India has given a greater scope to the fast moving consumer good companies.
The fast moving consumer goods (FMCG) industry is poised to achieve an overall growth
between 8%-8.5% in 2005-06, up 2-2.5% over the growth rate clocked in the previous year. This
optimistic prognosis is revealed by the Survey on the FMCG sector carried out by FICCI's
research division.
The survey released by FICCI president Onkar S Kanwar reveals that personal care products
continue to ride high with ’excellent’ (20% plus) to ’high growth’ (10%-20%) rates in 12 products.
The FICCI survey based on feedback from large FMCG companies and associations, shows that
the sectors which are projected to achieve excellent growth of 20% and above in 2005-06 are
deodorants (40%), hair dyes (30%), shaving cream, cleaners/repellents (22%) and anti-dandruff
shampoos (20%).
The ‘excellent-growth’ achievers are thus set to improve their growth rates this year compared to
their performance in 2004-05. In that year the growth rates were deodorant (40%), hair dyes
(26%), shaving cream (21%), cleaners/repellents (22%), anti-dandruff shampoos (20%).
The survey shows that in 2005-06, the sectors that are projected to achieve high growth between
10%-20% are: soap & toiletries (14 %), toilet soap (14%), tooth paste (10 %), personal health care
(12%), oral care (12%), skin care & cosmetics (11%), skin/ fairness cream (12%), branded
coconut oil (18 %), feminine hygiene (12%), and dish wash (10 %).
In comparative terms, in the previous year, the sectors that have recorded high growth between
10%-20% are: personal health care (10%), oral care (10%), skin care & cosmetics (10%), branded
coconut oil (15 %), shampoos (16 %), feminine hygiene (10%).
The 2005-06 projections of some sectors that are set to record moderate and single digit growth
are: washing powder (8.5 %), detergent cakes (7 %), liquid detergent (8.5%), laundry soaps/ bars
(3 %), personal wash (7 %), tooth powder (5 %), tooth brush (5 %), coconut oil (6.5 %). In 2004-
05, the comparable growth rates were: soap & toiletries (6.5 %), washing powder (8 %), detergent
cakes (7 %), liquid detergent (8 %), laundry soaps/ bars (2 %), dish wash (8.5 %) personal wash
(6 %), toilet soap (6 %), tooth paste (4.5 %), tooth powder (2 %), tooth brush (5 %), skin/ fairness
cream (7.5%), coconut oil (5.5 %), feminine hygiene (10 %).
The survey notes that growth in urban markets has been much faster at about 7% and there has
been revival in rural markets, though at a relatively slower rate of about 4 %.
Higher growth rates in the companies like Dabur, Marico, Parle, Johnson & Johnson, Godrej
Consumer, Procter & Gamble, Gillette and others have been achieved by innovation and well-
planned distribution strategies adopted by the companies.
Innovation and launching of new brands are being adopted by the companies to grab the market.
For example, Godrej Consumer Products is focusing on product innovations and extensive
advertising campaigns to popularize its soap brands.
MAJOR PLAYERS
IN
FAST MOVING CONSUMER GOOD MARKET
Executive Summary
Business
PGHH's core business consists of anit-cold and feminine hygiene
products. Detergents and shampoos are manufactured for parents
100% subsidiary. The shampoo manufacturing arrangment has been
terminated w.e.f. H2 FY2000. Skin care and men toiletry products from
a small part of turnover and are not the main focus areas for P&G.
The following is the estimated turnover breakup from various
product segment.
Category Brand % Share in T/0
Cosmetics, Personal Products/Whisper 26
& Toiletries Clearasil 4
Soaps & Detergents Ariel, Tide, Camay 27
Vicks Vaporub 18
Ointments & Creams Old Spice Shaving Cream 3
Lozenges Vicks Lozenges 9
Tablets Vicks 500 9
Liquids Old Spice 2
RESEARCH DESIGN
1. Desk research : familiarity with the topic and the market were gained through
2. Pilot study : the main objectives was to finalise the method of measuring effects
of advertisement on purchase decision ( including testing its validity ). It proved
beneficial even for finalizing the research objectives , hypothesis and questinne .
for the pilot study a sample size of 100 was randomly selected from the city of
patiala and near by places.
3. Questionnaire :b care was taken to see that the question asked were neither in
exces of nor short of what was required by the research objectives anb
hypothesis . the coding plan for data entry was incorporated into the design of the
questionnaire thus making the subsequent task of data entry . numbers of
questionnaire used are two one for survey on shampoo or other for survey made
on toothpaste .
4. Sampling : data was collected from patiala city . this city was selected because of
the different profile of house hold offered by them . some care to include to the
people of different age group , income group , and occupation . within the town
the localities and household were selected randomly . the totakl sample size was
100 respondants 50 for survey made on shampoo and other for survey made on
toothpaste . respondents include both male and female .
6. Data checking validation and analysis : was done with the help of a computer .
given the nature of hypothesis and data, some assumption are used .
Monthly income of the students who taken the money from ther homes are taken of
their parents.
Unmarried boy are ask to tick husband alone while on the question as who influence
the purchase decision or as same in case of girls.
Every day each of us makes numerous decisions concerning every aspect of our daily
lives . these decision includes big decision and small decision about purchase of daily
consumable goods and our decision on these daily consumable goods are effected by our
level of knowledge because we generally not make a search for data to make such
decision . so we are more dependent on the knowledge we get easily from external
environment. Advertisement are the best source to get that knowledge. So advertisement
has effect on our purchasing decision . study is important to know how the advertisement
effects the decision while making the purchase .
From the company point of view, brands are expensive to create and have a high mortality
rate. It is in the interest of business to ensure that they stay strong and healthy. Only
advertisement can do this task more efficiently . given the importance of advertisement ,
marketing managers must know which element of m,arketing strategy can be used to
increase brand name through advertisement . study is important to know how the target
groups are given the advertisement and how the companies give the advertisement in that
competitive environment.
TOOTHPASTE MARKET
Many people in indfia still clean their teeth with traditional products like neem
twings , salt , ash , tobacoo or other herbal ingredients .
Average all India per capita consumption of toothpaste is a DISMAL 82 GMS
The dentist to population ratio is a critically low 1:35000 in the country . this
result in low oral hygiene consciousness and widespread dental disease.
Less than 15% of the Indian toothpaste users brush twice a day.
The toothpaste market grew at a CAGR of 7-8% between 1995-2000 but in 2005
the market grew by only 6%
ANALYSIS OF DATA
40
35
30
25 15-20
20 20-25
15 25-35
Above 35
10
5
0
%age
5
0
60
50
40
Male
30
Female
20
10
0
Survey is not restricted to either the male or female respondent
only. Both the sexes are included in the survey. Numbers of males are
more as 28 out of 50 or 56%, is not makes a big difference. No female
farmer of businessman found in the survey. I do the survey in district
court here I found some professional ladies. Some girls of university are
also in the survey and the service staff in government offices. Male
respondents are almost equal from all occupation.
Use Toothpaste No. of People %age
Yes 48 96
No 2 4
100
80
60 Yes
No
40
20
25
Close up
20
Colgate
15 Pepsodent
Babool
10
Others
5
For the question of brand preference, some selected brands are chosen
only. These are Closeup, Colgate, the Pepsodent, Babool and other if
any. Out of all there brand Closeup and Papsodent are of Hindustan
Lever Limited and have Limited and have more sale than other. Both
combine have 28 respondent out of 48 who use Closeup and Pepsodent
14 each and 10 who use Colgate and 4 who use Babool, 6 are those
who use other brands. There day HLL doing the more aggrieve
marketing and give more advertisement on T.V. so they naturally
acquire major share. Colgate, which was the main competitor of
Closeup, has now decreasing its market share.
Seen Product AD No. of People %age
Yes 50 100
No 0 0
100
80
60 Yes
No
40
20
0
When the people are asked that have they been seen the
advertisement of the product they are using> the results were 100% all
the 48 responded in yes. At because of fast growing use of television
and more number of channels, people are more aware of the product
through its advertisement. People now have more information about
the new brands come in the market and which brand is giving more
advertisement.
others
Newspaper 12%
8%
TV
Magazine
Newspaper
TV others
Magazine
72%
8%
Where the people seen the advertisement of the product they are
using? One more result, which comes in 100% that all the people seen
the advertisement on T.V. They have seen the advertisement on some
other places also such as retailer shop, magazines and newspaper.
Much of the information about the product in taken by the people from
advertisement on T.V. There day people are more rational in their
decision or they know every thing about the product and its attributes.
They need not to make much reach of additional data for taking their
decision because advertisement already increase their knowledge.
When seen the AD No. of People %age
7.00A.M. to 10.00A.M. 4 8
12.00P.M. to 4.00 P.M. 17 33
7.00 P.M. to 10.00 P.M. 25 51
After 10.00 P.M. 4 8
60
50
7.00A.M. to
10.00A.M.
40
12.00P.M. to
4.00 P.M.
30
7.00 P.M. to
10.00 P.M.
20
After 10.00 P.M.
10
As the people usually watch T.V. but that time it is alos more
important the time when they see the toothpaste advertisement more
and when their decision is more effected. Mostly people watch the
product advertisement at prime time of T.V. between 7.00 P.M. to
10.00P.M. as 24 out of 48 mean 50% and other higher number in 18
out of 48 means 33% seen the advertisement between 12.00 P.M. to
4.00 P.M. when the house ladies are at their home and watch the family
dramas of serials. Only 4 were seen the product advertisement at
morning time between 7.00A.M. to 10.00 A.M. and 4 who seen the
advertisement after 10.00 P.M. at night.
40
30 Husband/Alone
Wife/Alone
20 Children
10
50
40
3 Months
30
6 Months
20 1 Year
More than 1 Year
10
0
The use of toothpaste is more sable than in case of shampoo as
the toothpaste once purchase used for one month and next month
usually person purchase the same brand. Trail ability is more in case of
toothpaste also, as 50 gm. tube is also available. How long the
respondent are using the product, is 1 year or more than 1 year as 30
out of 48 use it 1 year or more than 1 year. But still some shift in also
there as some use it from 3 months and 6 months only mean there is
shift to the other brand. After some time companies come with new
and better in the product and knowledge about that they come to know
through T.V. advertisement.
30
25 AD Script
20 Projected
Celebrities
15
Voice
10
Spotting Action
5
80
70
60 Immediate
50 Purchase
40 Purchase After
Sometime
30
No Reaction at
20 all
10
0
Target Group
Toothpaste industry is now more targeted to the particulars
segment with their targeted consumer. Market for toothpaste is mainly
divided in four groups.
• People who prefer for Whitening teeth
• People who prefer for Gum Care
• People who prefer for Breath Freshness
• People who prefer Herbal Content
There are separate target group of customers but some
advertisement as brand try to target two or more groups also. The first
three groups have all most equal share and Herbal toothpaste have
fewer roles because of less advertisement.
How Target Groups Given AD
• Targeted segment are given the advertisement as the
product can solve their problem in the better way than by only
other brand.
• Projected celebrations are use, as models or young age
college-going students are shown. As the Colseup advertisement
show the young boy and girl come close because of breath
freshness.
• Time are most important as the advertisement are given mostly
on prime time between 7.00 p.m. to 10.00 p.m. to target the
most extent customers as possible.
• Advertisements are given on famous channels such Start
Plus, Zee T.V., Sports & Music Channel.
How the Decision Effected By ADS
• As the toothpaste don't have as much trainability as the
shampoo have but have some trainability with small size of
tubes which effect the purchase decision as the people can
try new product as product with new characteristics with
small size of tubes.
• Decision of the purchase in more effected by advertisement
if the customer face only problem and advertisement give
the solution to that problem.
• Price is not given much consideration as the Babool have
fewer sales instead of having less price.
• Decision in effected by advertisement and also by
availability of product in the market sometime you select
the brand but don't find with the retail and purchase some
other.
• Some people are of the view that we should change the
brand after some time, as it is being prescribe by doctors.
• More regular advertisement built more positive attitude of
the people towards a particular brand as these day Closeup
come with new slogan “Talk to me” which help them to
increase their role in market.
ANALYSIS OF DATA
40
35
30
5000-10000
25
10000-15000
20
15000-20000
15
Above 2000
10
5
0
Monthly incomes of people who are included in the survey have
monthly income between 5000-20000. Only two respondent have
ranging above 20000. 20 out of 50 had the monthly income 10000-
15000 followed by 14 people each in the group of 5000-10000 and
15000-20000. Middle class families are included as they are more
aware of brands and prices. Income of those who don't have fixed
monthly income like farmers, businessmen are taken annual income
divide by 12.
60
50
40
Male
30
Female
20
10
Survey includes both the genders. Out of 50, 30 were male and
20 were female, means almost an equal number. As the shampoo is
consume by both the male and female but the consumption by females
is more and they even purchase shampoo for her. Male consumption is
also more in Punjab because males here usually have long hair.
Females are mostly the students and servicemen/service women and
males are mostly the farmers, businessmen and self-employed. Both
the sexes are almost in all age group and income group.
Use Shampoo No. of People %age
Yes 45 90
No 5 10
100
80
60 Yes
No
40
20
80
70
60
50
Bottle
40
Pouch
30
20
10
0
People who are using the shampoo prefer to use it in small pouch
available just in Rs. 2 or more. The 14 use shampoo in bottle and 34
prefer in Pouch. Pouch increases the trailability of Shampoo as person
can try different brands if they are not satisfied with one. One more
important thing is that people like to pay small amount. They are ready
to purchase quality product at higher price but the payment in
installment. That is why Head & Shoulder is sold maximum instead of
having more price, as Rs. 4 per Pouch. These days packaging is one of
the very important tool in the market work as the 5th P of marketing
mix.
Seen Product AD No. of People %age
Yes 45 92
No 5 8
100
80
60 Yes
No
40
20
10
0
40
30 Husband
Wife
20 Children
10
30
25 AD Script
20
Projected
Celebrities
15
Voice
10
Spotting Action
5
90
80 Immediate
70 Purchase
60
50 Purchase
After
40
Sometime
30
No Reaction
20 at all
10
0
The last question in the survey was the reaction to the particular
advertisement. Mostly people don't go for the product immediately
after the advertisement comes on T.V. or at other place. People are
mostly follow people when product gains some share or reputation in
the market. In case of shampoo some people shift to the new products
immediately after the new product come with some new product
because of pouch available which make more trainability for the
product.
FINDING OF SURVEY SHAMPOO MARKET
Target Group
Shampoo industry in India is divided into four major segments
and each segment targeted to the fix consumers their segments are:-
• Shampoo for Dandruff Solution
• Shampoo for Glossy Hair
• Shampoo for prevent hair loss
• Shampoo with herbal content.
Survey finds that dandruff solution shampoos have more strong
market. So Head & Shoulder and Clinic Plus enjoy more market share.
How target groups given AD
• Advertisement to the target market is given as the
solution of the problem such as dandruff solution, preventing hair
lost etc. Advertisement are targeted mostly to the middle class
which have the effect of projected celebrates on their purchase
decision, so the famous film star, sports starts, model and
personality are show in the advertisement.
• Time of the advertisement is one of the most
important factors. Some advertisements are mostly give between
12.00P.M. to 4.00P.M. targeted to housewives, and at prime time
between 7.00 P.M. to 10.00 P.M. to reach the advertisement to
the maximum extant it can reach and maximum effect it can
make on purchase decision.
• Advertisements are mostly given on the T.V. in
famous serials and on famous channels such as Zee T.V. Star Plus
and on movies channel and one sports channels.
• Advertisements have the much effect on the
purchase decision of people show the maximum sale of heads
and shoulders because these day decisions more advertisement
of Head & Shoulder come on T.V.
How the Decision effected by ADS
• Product is put in the market more through pouches
this increases the trailability, mean people shift to new brand on
trail basis and stand their until new brand satisfied them more
better way.
• Product characteristic, mean if the product give the
solution to the problem they are facing they go for that product.
• People frequently shift to other brand after six
months or 1 year with the decreasing in advertisement on T.V.
and other brand start showing much advertisements.
• Purchase decision are effected by advertisement if
the product have some reputation in the market new product
with more advertisement is purchase only when the people come
to know about its demand in the market and after trail by himself
or herself.
• Cost of the product effect the purchase decision but
product characteristic has more influence.
What is lacking through ADS
• Survey shows that mostly house ladies are purchase
or decide to which brand to be purchased but advertisement of
shampoo never targeted to the segment.
• Herbal contents are not shown by much the product
advertisement, which can in the effect of the purchase decisions
more. As people have the perception is that the herbal mean
more natural with no harmful effect.
• Old age people never targeted by advertisement,
which can be a good segment for shampoo market.
• Sometime advertisement tries to show something
more than the actual product, which increase the people's
expectation, and later on cause the bad reputation of product in
the market.
• Advertisement should not shown obscene or vulgar
seen which are not come under ethical code of conduct.
Consumers View About ADS
• People are agreeing with the statement that
advertisements change their decision sometime in wrong
direction. It creates the feeling of sometime missing which is very
essential.
• Advertisements are not taken as the wastage of
expenditure as it increases the knowledge more than its
disadvantages. Only quality product service in the market.
• The advertisement leads to the monopoly in the
market as HLL enjoy the maximum share in daily consumable. So
there is the chance of raising prices.
LIMITATIONS OF THE RESEARCH
The project was based on the study of consumer behavior. How the
consumer decision for the purchase of daily consumable or durable
goods are affected through advertisement . companies or
advertisement agencies are tries to give the advertisement more
targeted to give the advertisement more targeted to the customer’s
need or desires . they first study the need or problem which the
QUESTIONNAIRE
Name______________________
Age group:
13-20 20-25
25-35 Above 35
Monthly income
5000-10000 10000-15000
15000-20000 above 20000
Sex
Male Female
1. Do you use shampoo?
Yes No
2. Which brand you are using or preferring
Clinic plus Herbs & shoulders
Pentine Vatika
Lux Any other
3. Have you seen that product ad. You are using ?
Yes No
4. Where did you see that ad ?
T.V. Newspaper
Magazine
5. Who purchase this product in your family
Husband Wife
Children
6. How long have you been using this brand ?
3 Months 6 Months
1 Year More than 1 year
7. Which factor appeal you most in the ad ?( one or more)
Ad script Projected celedrities
Voice Sporting action
8.How you reacted to the particular ad?
Immediately purchase the product
Purcahse after its reputation builds up
Not react at all
Questionnaire
Name______________________
Age group:
13-20 20-25
25-35 above 35
Monthly income
5000-10000 10000-15000
15000-20000 above 20000
Occupation
Self employed Serviceman
Farmer Businessman
Student
Sex
Male Female
1.Do you use toothpaste ?
Yes No
2.Which brand you are using or preferring
Colgate Close up
Babool Pepsodent
Any other
3. Have you seen that product ad. You are using ?
Yes No
4. Where did you see that ad ?
T.V. Newspaper
Magazine
5. If T.V when did you mostly see that ad
7.00-10.00 a.m 12.00-4.00 p.m
7.00-10.00 p.m After 10.00 p.m
6. Who purchase this product in your family
Husband Wife
Children
7. How long have you been using this brand ?
3 Months 6 Months
1 Year More than 1 year
8. Which factor appeal you most in the ad ?( one or more)
Ad script Projected celedrities
Voice Sporting action
9. Ads are wastage of resources ?
Strongly agree Agree neither agree nor disagree
Disagree Strongly disagree