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PREFACE

Preparing a project of this nature is an arduous task and I was fortunate enough to get support from a large number o persons. I wish to express my deep sense of gratitude to all those who generously helped in successful completion of this report by sharing their invaluable time and knowledge. It is my proud and previledge to express my deep regards to Respected HOD Dr. Pramesh Gautam, Head of Department of Business Management , SWAMI VIVEKANAND INSTITUTE OF TECHNOLOGY, SAGAR for allowing me to undertake this project. I feel extremely exhilarated to have completed this project under the able and inspiring guidance of Mr. Chaitanya Kaushakiya he rendered me all possible help me guidance while reviewing the manuscript in finalising the report. I also extend my deep regards to my teachers , family members , friends and all those whose encouragement has infused courage in me to complete to work successfully.

RAHUL JAIN MBA IST SEM.

ACKNOWLEDGEMENT
Preparing a project of this nature is an arduous task and I was fortunate enough to get support from a large number o persons. I wish to express my deep sense of gratitude to all those who generously helped in successful completion of this report by sharing their invaluable time and knowledge. It is my proud and privilege to express my deep regards to Respected , Head of Department Dr.Pramesh Gautam, Department of Business Management , SWAMI VIVEKANAND INSTITUTE OF TECHNOLOGY SAGAR for allowing me to undertake this project. I feel extremely exhilarated to have completed this project under the able and inspiring guidance of He rendered me all possible help me guidance while reviewing the manuscript in finalising the report. I also extend my deep regards to my teachers, family members , friends and all those whose encouragement has infused courage in me to complete to work successfully.

RAHUL JAIN MBA IST SEM.

DELCLARATION BY THE CANDIDATE


Date : I declare that the project report titled " MARKETING STRATEGIES OF TOP FIVE BRANDS OF FMCG SECTOR" on Market Segmentation is nay own work conducted under the supervision Mr. Chaitanya Kaushakiya Department of Business Management, SWAMI VIVEKANAND INSTITUTE OF TECHNOLOGY , SAGAR To the best of my knowledge the report does not contain any work , which has been submitted for the award of any degree , anywhere.

RAHUL JAIN MBA IST SEM.

CERTIFICATE
The project report titled " MARKETING STRATEGIES OF TOP FIVE BRAND OF FMCG "been prepared by RAHUL JAIN MBA IST SEM. under the guidance and supervision of Mr. Chaitanya Kaushakiya for the partial fulfillment of the Degree of MBA.

Signature of the Supervisor

Signature of the Head of the Department

Signature of the Examiner

CONTENTS

PREFACE ACKNOWLEDGEMENT CERTIFICATE DECLARATION CHAPTER I INTRODUCTION ABOUT PRODUCT AN INSIGHTOF COMPANY HISTORY MISSION AND VISION STANDING POSITION OF COMPANY BRAND VALUE CHAPTER II OBJECTIVE OF THE STUDY CHAPTER III RESEARCH METHODOLOGY CHAPTER IV MARKET ANALYSIS OVERVIEW BRANDS CHAPTER V CONSUMER GROUPS CONSUMER BEHAVIOUR CHAPTER VI PRODUCT PROFILE PLAN FOR PRODUCT MIX PRODUCT RANGE CHAPTER VII MARKETING STRATEGY PRICING POSITION AND DISTRIBUTION PROMOTION CHAPTER VIII ABOUT COMPETITORS COMPETITOR FOR PRODUCT PRICE OF COMPETITOR PRODUCT CHAPTER IX DATA ANALYSISAND INTERPRETATION CHAPTER X LIMITATION CHAPTER XI CONCLUSION & SUGGESTION BIBLIOGRAPHY QUESTIONNAIRE

INTRODUCTION

ABOUT PROJECT Fast Moving Consumer Goods (FMCG) FMCG are products that have a quick shelf turnover, at relatively low cost and don't require a lot of thought, time and financial investment to purchase. The margin of profit on every individual FMCG product is less. However the huge number of goods sold is what makes the difference. Hence profit in FMCG goods always translates to number of goods sold. Fast Moving Consumer Goods is a classification that refers to a wide range of frequently purchased consumer products including: toiletries, soaps, cosmetics, teeth cleaning products, shaving products, detergents, other non-durables such as glassware, bulbs, batteries, paper products and plastic goods, such as buckets. Fast Moving is in opposition to consumer durables such as kitchen appliances that are generally replaced less than once a year. The category may include pharmaceuticals, consumer electronics and packaged food products and drinks, although these are often categorized separately. The term Consumer Packaged Goods (CPG) is used interchangeably with Fast Moving Consumer Goods (FMCG). Three of the largest and best known examples of Fast Moving Consumer Goods companies are Nestl, Unilever and Procter & Gamble. Examples of FMCGs are soft drinks, tissue paper, and chocolate bars. Examples of FMCG brands are Coca-Cola, Kleenex, Pepsi and Believe. The FMCG sector represents consumer goods required for daily or frequent use. The main segments of this sector are personal care (oral care, hair care, soaps, cosmetics, toiletries), household care (fabric wash and household cleaners), branded and packaged food, beverages (health beverages, soft drinks,

staples, cereals, dairy products, chocolates, bakery products) and tobacco. The Indian FMCG sector is an important contributor to the country's GDP. It is the fourth largest sector in the economy and is responsible for 5% of the total factory employment in India. The industry also creates employment for 3 m people in downstream activities, much of which is disbursed in small towns and rural India. This industry has witnessed strong growth in the past decade. This has been due to liberalization, urbanization, increase in the disposable incomes and altered lifestyle. Furthermore, the boom has also been fuelled by the reduction in excise duties, de-reservation from the small-scale sector and the concerted efforts of personal care companies to attract the burgeoning affluent segment in the middle-class through product and packaging innovations. Unlike the perception that the FMCG sector is a producer of luxury items targeted at the elite, in reality, the sector meets the every day needs of the masses. The lower-middle income group accounts for over 60% of the sector's sales. Rural markets account for 56% of the total domestic FMCG demand. Many of the global FMCG majors have been present in the country for many decades. But in the last ten years, many of the smaller rung Indian FMCG companies have gained in scale. As a result, the unorganized and regional players have witnessed erosion in market share.

History of FMCG in India


In India, companies like ITC, HLL, Colgate, Cadbury and Nestle have been a dominant force in the FMCG sector well supported by relatively less

competition and high entry barriers (import duty was high). These companies were, therefore, able to charge a premium for their products. In this context, the margins were also on the higher side. With the gradual opening up of the economy over the last decade, FMCG companies have been forced to fight for a market share. In the process, margins have been compromised, more so in the last six years (FMCG sector witnessed decline in demand). Current Scenario The growth potential for FMCG companies looks promising over the long-term horizon, as the per-capita consumption of almost all products in the country is amongst the lowest in the world. As per the Consumer Survey by KSA-Technopak, of the total consumption expenditure, almost 40% and 8% was accounted by groceries and personal care products respectively. Rapid urbanization, increased literacy and rising per capita income are the key growth drivers for the sector. Around 45% of the population in India is below 20 years of age and the proportion of the young population is expected to increase in the next five years. Aspiration levels in this age group have been fuelled by greater media exposure, unleashing a latent demand with more money and a new mindset. In this backdrop, industry estimates suggest that the industry could triple in value by 2015 (by some estimates, the industry could double in size by 2010). In our view, testing times for the FMCG sector are over and driving rural penetration will be the key going forward. Due to infrastructure constraints (this influences the cost-effectiveness of the supply chain), companies were unable to grow faster. Although companies like HLL and ITC have dedicated initiatives targeted at the rural market, these are still at a relatively nascent stage. The bottlenecks of the conventional distribution system are likely to be removed once organized retailing gains in scale. Currently, organized retailing accounts for just 3% of total retail sales and is likely to touch 10% over the

next 3-5 years. In our view, organized retailing results in discounted prices, forced-buying by offering many choices and also opens up new avenues for growth for the FMCG sector. Given the aggressive expansion plans of players like Pantaloon, Trent, Shoppers Stop and Shoprite, we are confident that the FMCG sector has a bright future. Budget Measures to Promote FMCG Sector 2% education cess corporation tax, excise duties and custom duties Concessional rate of 5% custom duty on tea and coffee plantation machinery

Budget Impact The education cess will add marginally to the tax burden of all FMCG companies The dividend distribution tax on debt funds is likely to adversely effect the other income components of companies like Britannia, Nestle and HLL The measure to abolish excise duty on dairy machinery is a positive for companies like Nestle Concessional rate for tea and coffee plantation machinery is a positive for Tata Tea, HLL, Tata Coffee and other such companies Duty reduction in food grade hexane will have a marginally positive impact on companies like Marico and HLL Area specific excise exemptions for North East, J&K, Himachal Pradesh will continue to encourage FMCG companies to relocate to these areas. Budget over the years Budget 2001-02 From 35-55% to 75% for crude edible oil From 45-65% to 85% for refined Budget 2002-03 Increased focus on agricultural reforms with an aim to integrate the countrywide Budget 2003-04 Excise on biscuits reduced to 8% from 16%. Excise on soft drinks and sugar boiled

edible oil From 35% to 70% for copra, coconut, tea and coffee From 25% to 55% for crude palm oil Development allowance of tea industry raised to 40% from 20% All food preparations based on fruits and vegetables (pickles, sauces, ketchup, juices, jams etc.) made completely exempt from excise duty

food market Deregulation of the milk processing capacity Excise duty structure largely untouched. Only for tea, the duty was reduced from Rs 2 per Kg to Re 1 Customs duty on tea and coffee doubled to 100% Duty on imported pulses upped to 80%

Excise on cosmetics and toiletries halved to 16% India offers a large and growing market of 1 billion people of which 300 million are middle class consumers. India offers a vibrant market of youth and vigor with 54% of population below the age of 25 years. These young people work harder, earn more, spend more and demand more from the market, making India a dynamic and aspirational society. Domestic demand is expected to double over the ten-year period from 1998 to 2007. The number of households with "high income" is expected to increase by 60% in the next four years to 44 million households. India is rated as the fifth most attractive emerging retail market. It has been ranked second in a Global Retail Development Index of 30 developing countries drawn up by A T Kearney. A.T. Kearney has estimated India's total

Import duty on wine and liquor slashed from 210% to 180%

confectionery also reduced All states to switch to VAT in FY04 (deadline now has been extended till end FY05) Loans to agriculture and to small-scale sector will now be available at maximu 2% above prime lending rate (PLR) Development plans for roads, ports, railways and airports Customs duty on alcoholic beverages reduced

retail market at $202.6 billion, is expected to grow at a compounded 30 per cent over the next five years. The share of modern retail is likely to grow from its current 2 per cent to 15-20 percent over the next decade, analysts feel. The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. India is one of the worlds largest producers for a number of FMCG products but its FMCG exports are languishing at around Rs 1,000 crore only. There is significant potential for increasing exports but there are certain factors inhibiting this. Small-scale sector reservations limit ability to invest in technology and quality up gradation to achieve economies of scale. Moreover, lower volume of higher value added products reduce scope for export to developing countries. The FMCG sector has traditionally grown at a very fast rate and has generally out performed the rest of the industry. Over the last one year, however the rate of growth has slowed down and the sector has recorded sales growth of just five per cent in the last four quarters. The outlook in the short term does not appear to be very positive for the sector. Rural demand is on the decline and the Centre for Monitoring Indian Economy (CMIE) has already downscaled its projection for agriculture growth in the current fiscal. Poor monsoon in some states, too, is unlikely to help matters. Moreover, the general slowdown in the economy is also likely to have an adverse impact on disposable income and purchasing power as a whole. The

growth of imports constitutes another problem area and while so far imports in this sector have been confined to the premium segment, FMCG companies estimate they have already cornered a four to six per cent market share. The high burden of local taxes is another reason attributed for the slowdown in the industry At the same time, the long term outlook for revenue growth is positive. Give the large market and the requirement for continuous repurchase of these products, FMCG companies should continue to do well in the long run. Moreover, most of the companies are concentrating on cost reduction and supply chain management. This should yield positive results for them. The profile of major leading FMCG Market Players is as follows:

Vision & Mission


Vision Making people healthy and beautiful, naturally Mission To contribute whole heartedly towards the environment and society integrating all our stakeholders into the FMCG family

OBJECTIVE OF THE STUDY


The main objective of this study is to understand core aspects of the FMCG industry in India. Further the information regarding various famous FMCG companies and their brands will be knowledge boosting. Let us see main objectives of the comprehensive study as under: 1) To study the FMCG industry and its major players in India.

2) To analyze the FMCG industrys contribution towards Indian economy. 3) To know the growth potential of the FMCG industry in India. 4) To study the trends of the FMCG industry in India. 5) To know the key FMCG products and various famous brands in India. 6) To study the level of competition in the FMCG industry in India. 7) To study the effects of the Economic Reforms-1991 and Recession-2008 on the FMCGindustry in India.

RESEARCH METHODOLOGY
According to Green and Tall A research design is the specification of the methods and procedures for acquiring the information needed. It is the overall operational pattern or framework of the project that stipulates which information is to be collected, from where it is to be collected and by what procedures

This research process based on primary data analysis and secondary data analysis will be clearly defined to meet the objectives of the study.

I chose the primary sources to get the data. A questionnaire was designed in accordance with our mentor in FMCG. I chose a sample of about 30 corporate customers

I collected some data from the secondary sources like published Company documents, internet etc. Research Design A research design is the arrangement of conditions for collections and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedures. It is a descriptive cross sectional design .It is the conceptual structure with in which research is conducted; it constitutes the blueprint for the collection, measurement and analysis of data. It is needed because it facilitates the smooth sailing of the various research operations, thereby making research as efficient as possible yielding maximal information with minimal expenditure of effort, time and money. In the preliminary stage, my research stage constituted of exploratory study by which it is clear that the existence of the problem is obvious .So, I can directly head for the conclusive research. Sampling Plan Sampling plan is a distinct phase of research process. In this stage I have to determine who is to be sampled, how large should be the needed sample and how sampling unit is to be selected. Population In my research, I have defined my population as a complete set of customers of Sagar City. Sample Survey As compared to census study, a sample study has been conducted by us because of:

Wide range of population, it was impossible to cover the whole population Time and money constraints. Sample Unit In this survey I took the list of customers from the dealers of FMCG Sampling Technique Sampling technique implies the method of choosing the sample items, the two methods of selecting sample are: Probability method. Non-probability method. Probability method is those in which every item of the universe has an equal chance of the inclusion in the sample. Non-probability methods are those that do not provide every item in the universe with known cause of being included in the sample. The selection process is partially subjective. For my study, I employed the Non-probability sampling technique, in which I got the data of the customers from the dealer of FMCG. Instrument of collection of data I have used one set of questionnaire to collect data from the customers. This questionnaire is structured and highly ordered. This includes both close ended and open ended questions. The close ended questions included both dichotomous and multiple choice questions.

PRODUCT PROFILE
1. NESTLE INDIA

Nestl India is a subsidiary of Nestl S.A. of Switzerland. With six factories and a large number of co-packers, Nestl India is a vibrant Company that provides consumers in India with products of global standards and is committed to long-term sustainable growth and shareholder satisfaction.

The Company insists on honesty, integrity and fairness in all aspects of its business and expects the same in its relationships. This has earned it the trust and respect of every strata of society that it comes in contact with and is acknowledged amongst India's 'Most Respected Companies' and amongst the 'Top Wealth Creators of India'.
Nestls relationship with India dates back to 1912, when it began trading as The Nestl Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished products Brief History in the Indian market.

After Indias independence in 1947, the economic policies of the Indian Government emphazised the need for local production. Nestl responded to Indias aspirations by forming a company in India and set up its first factory in 1961 at Moga, Punjab, where the Government wanted Nestl to develop the milk economy. Progress in Moga required the introduction of Nestls Agricultural Services to educate, advise and help the farmer in a variety of aspects. From increasing the milk yield of their cows through improved dairy farming methods, to irrigation, scientific crop management practices and helping with the procurement of bank loans. Nestl set up milk collection centres that would not only ensure prompt collection and pay fair prices, but also instil amongst the community, a confidence in the dairy business. Progress involved the creation of prosperity on an on-going and sustainable basis that has resulted in not just the transformation of Moga into a prosperous and vibrant milk district today, but a thriving hub of industrial activity, as well. For more on Nestl Agricultural Services, Nestl has been a partner in India's growth for over nine decades now and has built a very special relationship of trust and commitment with the people of India. The Company's activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers, suppliers of packaging materials, services and other goods.

The Company continuously focuses its efforts to better understand the changing lifestyles of India and anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness through its product offerings. The culture of innovation and renovation within the Company and access to the Nestl Group's proprietary technology/Brands expertise and the extensive centralized Research and Development facilities gives it a distinct advantage in these efforts. It helps the Company to create value that can be sustained over the long term by offering consumers a wide variety of high quality, safe food products at affordable prices.

Nestl India is a responsible organization and facilitates initiatives that help to improve the quality of life in the communities where it operates. Beginning with its first investment in Moga in 1961, Nestls regular and substantial investments established that it was here to stay. In 1967, Nestl set up its next factory at Choladi (Tamil Nadu) as a pilot plant to process the tea grown in the area into soluble tea. The Nanjangud factory (Karnataka), became operational in 1989, the Samalkha factory (Haryana), in 1993 and in 1995 and 1997, Nestl commissioned two factories in Goa at Ponda and Bicholim respectively. Nestl India is now putting up the 7th factory at Pant Nagar in Uttaranchal

Products Product Category Milk Products Brands NESTL EVERYDAY Dairy Whitener NESTL EVERYDAY Ghee NESTL Curds NESTL CEREMEAL NESTL Jeera Raita NESTL Fresh 'n' Natural Dahi NESTL Fruit 'N Dahi

Beverages

Prepared Dishes

NESTL Milk NESTL Slim Milk NESCAF CLASSIC NESCAF SUNRISE NESTL MILO NESCAF 3 in 1 NESCAF Koolerz MAGGI 2-MINUTE Noodles MAGGI Healthy Soups MAGGI Dal Atta Noodles MAGGI MAGIC Cubes NESTL Milk Chocolate NESTL KIT KAT NESTL MUNCH NESTL MILKYBAR NESTL MILKYBAR CHOO NESTL BAR-ONE POLO NESTL Eclairs

Chocolates & Confectionaries

1.

Hindustan Lever Limited (HLL)

The Global arm of Hindustan Levers Limited is Unilever's and its mission is to add Vitality to life. Their products meet everyday needs for nutrition, hygiene, and personal care with brands that hel p people feel good, look good and get more out of life. HLL has deep roots in local cultures and markets around the world which gives them a strong relationship with their consumers, which are the foundation for their future growth. They benefit from there wealth of knowledge and international expertise to the service the local consumers - a truly multi-local multinational. Brief History

In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers". With it, began an era of marketing branded Fast Moving Consumer Goods (FMCG). In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). These three companies merged to form HLL in November 1956; HLL offered 10% of its equity to the Indian public, being the first among the foreign subsidiaries to do so. Unilever now holds 51.55% equity in the company. The rest of the shareholding is distributed among about 380,000 individual shareholders and financial institutions. Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986. The liberalization of the Indian economy, started in 1991, clearly marked an inflexion in HLL's and the Group's growth curve. Removal of the regulatory framework allowed the company to explore every single product and opportunity segment, without any constraints on production capacity. Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the most visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills Company (TOMCO) merged with HLL, effective from April 1, 1993. In 1995, HLL and yet another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Lever Limited, to market Lakme's market-leading cosmetics and other appropriate products of both the companies. Subsequently in 1998, Lakme Limited sold its brands to HLL and divested its 50% stake in the joint venture to the company. HLL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994, which markets Huggies Diapers and Kotex Sanitary Pads. HLL has also set up a subsidiary in Nepal, Nepal Lever Limited (NLL), and its factory represents the largest manufacturing investment in the Himalayan kingdom. The NLL factory manufactures HLL's products like Soaps, Detergents and Personal Products both for the domestic market and exports to India. The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on the Foods and Beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with significant interests in Instant Coffee. In 1993, it acquired the Kissan business from the UB Group and the Dollops Icecream business from Cadbury India. As a measure of backward integration, Tea Estates and Doom Dooma, two plantation companies of Unilever, were merged with Brooke Bond. Then in July 1993, Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL), enabling greater focus and ensuring synergy in

the traditional Beverages business. 1994 witnessed BBLIL launching the Wall's range of Frozen Desserts. By the end of the year, the company entered into a strategic alliance with the Kwality Icecream Group families and in 1995 the Milkfood 100% Icecream marketing and distribution rights too were acquired. In January 2000, in a historic step, the government decided to award 74 per cent equity in Modern Foods to HLL, thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. HLL's entry into Bread is a strategic extension of the company's wheat business. In 2002, HLL acquired the government's remaining stake in Modern Foods. In 2003, HLL acquired the Cooked Shrimp and Pasteurised Crabmeat business of the Amalgam Group of Companies, a leader in value added Marine Products exports. Products Product Category Product Name Lux Pears Lifebuoy Soap Liril Hamam Breeze Dove Rexona Ponds Skin Care Fair & Lovely Sunsilk Hair Care: Naturals Clinic Pepsodent Oral Care CloseUp Axe Deodorant Rexona Color Cosmetics Lakme Ayurvedic Healthcare Aysh Laundry Surf Excel Rin Wheel Brands

Personal Care

Fabric Care

Beverages Foods

Tea Coffee Salt Sauces Ice Creams

Brooke Bond Lipton Bru Knnor Annapurna Kissan Kwality Walls

3.

GLAXO SMITHKLINE

GlaxoSmithKline is a leader in t he worldwide consumer healthcare market. With nearly $5 billion in sales, over ten $100 million brands and present in 130 markets, the consumer healthcare business brings an added dynamic dimension to GSK. Operating in the fiercely competitive environment of retail and consumer marketing GlaxoSmithKline Consumer Healthcare brings oral healthcare, overthe-counter medicines and nutritional healthcare products to millions of people.

Brand names such as Panadol the analgesic, Aquafresh toothpaste, Lucozade the nutritional and Nicorette/ Niquitin smoking cessation products are household names around the world. In one year GSK Consumer Healthcare produces - among many others - nine billion tablets to relieve stomach upsets, six billion tablets for pain relief tablets and 600 million tubes of toothpaste. But the driving force behind GlaxoSmithKline's consumer healthcare business is science. With four dedicated consumer healthcare R&D centres and consumer healthcare regulatory affairs, the business takes scientific innovation as seriously as marketing excellence and offers leading-edge capability in both. The Company The company has a challenging and inspiring mission: to improve the quality of human life by enabling people to do more, feel better and live longer. This mission gives them the purpose to develop innovative medicines and products that help millions of people around the world. In fact, they are the only pharmaceutical company to tackle the World Health Organizations three priority diseases HIV/AIDS, tuberculosis and malaria. Headquartered in the UK and with operations based in the US, it is one of the industry leaders, with an estimated 7% of the world's pharmaceutical market. As a company has a emphasized more on research & development, estimated every hour they spend more than 300,000 (US$562,000) to find new medicines. The medicines produced are mainly in six major disease areas asthma, virus control, infections, mental health, diabetes and digestive conditions. In addition, it is a leader in the important area of vaccines and are developing new treatments for cancer. GSK at a glance

Mission is to improve the quality of human life by enabling people to do more, feel better and live longer Research-based pharmaceutical company It is the only pharmaceutical company to tackle the three "priority" diseases identified by the World Health Organization: HIV/AIDS, tuberculosis and malaria Its business employs over 100,000 people in 116 countries They make approximately four billion packs of medicines and healthcare products every year Over 15,000 people work in the research teams to discover new medicines We supply one quarter of the world's vaccines and by the end of 2005 we had 25 vaccines in clinical development In 2005 we donated 136 million albendazole tablets to help elimitate lymphatic filariasis (elephantiasis)

In 2005 we shipped 126 million tablets of preferentially-priced Combivir and 2005 Epivir (our HIV treatments) to developing countries

Almost 100 countries benefitted from our humanitarian product donations in

We sold 23 million bottle of Lucozade Sport Hydro Active in 2005

GSK Products Product name: Major Markets

Aquafresh

North and South America Europe East and South Africa Middle East

Asia Australia and New Zealand

Aquafresh is one of the world's largest and fastest growing toothpaste and toothbrush brands. The unique red, white and blue stripes of the toothpaste make the product not only visually attractive, but also underline the triple benefits of strong teeth, healthy gums and fresh breath whole mouth protection. The Aquafresh range of manual and electric toothbrushes not only clean teeth effectively, they are also gentle on gums because of their flexible necks. Their flexible heads and brush tips have been designed for cleaning even the hardest-to-reach parts of the mouth. The Aquafresh range also includes whitening, sensitive, tartar control and children's toothpaste, children's toothbrushes, dental lozenges and dental gum.

Product name: Major Markets


ENO

India Brazil South Africa and Thailand

ENO is the most global of GSK's gastrointestinal brands with sales of 29 million. The fast-acting effervescent fruit salts, used as an antacid and reliever of bloatedness, was invented in the 1850s by James Crossley ENO Product name: Major Markets India and UK Horlicks, 'The Great Family Nourisher,' is a nutritional drink made from wheat, milk and malted barley and is sold in powdered form. The brand is such an enormous success in its key market, India, that alongside the traditional family formula, there is a special formulation for children between one and three years of age and another for breast-feeding mothers. Horlicks

Financial review Operating profit and earnings per share Operating profit of 1,911 million grew by 13%, which was above the turnover growth of 9%, reflecting an improved cost of sales margin and higher other operating income partly offset by increased R&D expenditure. SG&A grew 8%. Excluding costs for legal matters, SG&A grew by 2%, well below turnover growth. In the quarter, gains from asset disposals were 91 million (10 million in 2005), costs for legal matters were 123 million (33 million in 2005), the fair value movements on the Quest collar and Theravance options were unfavorable 69 million (9 million unfavorable in 2005) and net income related to restructuring programmes was 4 million (24 million charge in 2005). The total operating profit impact of these items was a 97 million charge in 2006, compared with a 56 million charge in 2005, resulting in a 2 percentage point reduction in operating profit growth for the quarter. Profit after taxation grew by 14% which was marginally higher than the growth in operating profit and reflected lower net interest costs, partially offset by a higher expected tax rate for the year.EPS of 23.3 pence increased 15% in CER terms (14% in sterling terms) compared with Q2 2005. The adverse currency impact of 1% on EPS reflected exchange losses on settlement of foreign currency balances in the quarter partly offset by a stronger dollar.

4. COLGATE PAMOLIVE INDIA LIMITED From a modest start in 1937, when handcarts were used to distribute Colgate Dental Cream, Colgate-Palmolive (India) today has one of the widest distribution networks in India a logistical marvel that spans around 3.5 million retail outlets across the country, of which the Company services 9.40,000 outlets directly. The Company has

grown to a Rs. 9600 million plus with an outstanding record of enhancing value for its strong shareholder base. Colgate's tight focus in Oral Care in India while building its Personal Care business coupled with a simple, but sound worldwide financial strategy, has helped deliver consistent shareholder value. Colgate consistently increases gross margin while at the same time reducing overhead expenses. The increase in gross margin and the reduction in overhead expenses provide the money to invest in advertising to support the launch of new products, while at the same time increasing operating profit. Today, Colgate is a household name in India with one out of two consumers using a modern dentifrice. Consistently superior quality, innovation and value for money products emerging out of advanced technology employed, has enabled Colgate to be voted The Most Trusted Brand in India across all brands and categories for the third consecutive year in the Brand Equity AC Nielson ORG-MARG 2005 survey. Colgate has been the only brand to be ranked in the top three for all the five surveys and to hold the premier position for three consecutive years. This is a true measure of the trust and confidence that generations of consumers have placed in Colgate for their oral care needs.

5.

DABUR INDIA

Dabur India Limited is a leading Indian consumer goods company with interests in health care, Personal care and foods. Over more than 100 years we have been dedicated to providing nature-based solutions for a healthy and holistic lifestyle.

Through our comprehensive range of products we touch the lives of all consumers, in all age groups, across all social boundaries. And this legacy has helped us develop a bond of trust with us. 1979 1986 1992 1993 1994 1995 1996 1997 1998 2000 2003 2005 2006 2006 Sahibabad factory / Dabur Research Foundation Public Limited Company Joint venture with Agrolimen of Spain Cancer treatment Public issues Joint Ventures 3 separate divisions Foods Division / Project STARS Professionals to manage the Company Turnover of Rs.1,000 crores Dabur demerges Pharma Business Dabur aquires Balsara Dabur announces Bonus after 12 years Dabur crosses $2 Bin market Cap, adopts US GAAP

MARKETING MIX

Product Analysis Product Price Place Promotion Market Analysis Size ( Past , Present and Future) Growth ( Expected Trends ) Profitability Risks / Threats Distribution Channels

Market Analysis

ABOUT COMPETITOR
Materials availability India has a diverse agro-climatic condition due to which there exists a wide-ranging and large raw material base suitable for food processing industries. India is the largest producer of livestock, milk, sugarcane, coconut, spices and cashew and is the second largest producer of rice, wheat and fruits & vegetables. India also has an ample supply of caustic soda and soda ash, the raw materials in the production of soaps and detergents India produced 1.6 million tonnes of caustic soda in 2003-04. Tata Chemicals, one of the largest producers of synthetic soda ash in the world is located in India. The availability of these raw materials gives India the locational advantage.

Cost competitiveness
Labour cost comparison

Apart from the advantage in terms of ample raw material availability, existence of low-cost labour force also works in favour of India. Labour cost in India is amongst the lowest in Asian countries. Easy raw material availability and low labour costs have resulted in a lower cost of production. Many multi-nationals have set up large low cost production bases in India to outsource for domestic as well as exports market.

The FDI Policy (Foreign Direct Investment)


Automatic investment approval (including foreign technology agreements within specified norms), up to 100 per cent foreign equity or 100 per cent for NRI and Overseas Corporate Bodies (OCBs) investment, is allowed for most of the food processing sector except malted food, alcoholic beverages and those reserved for small scale industries (SSI). 24 per cent foreign equity is permitted in the small-scale sector. Temporary approvals for imports for test marketing can also be obtained from the Director General of Foreign Trade. The evolution of a more liberal FDI policy environment in India is clearly supported by the successful operation of some of the global majors like PepsiCo in India.

Ex. PepsiCo's India experience


After a not so successful attempt to enter the Indian market in 1985, Pepsi re-entered in 1988 with a joint venture of PepsiCo, Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. By 1994, Pepsi took advantage of the liberalized policies and took control of Pepsi Foods by making an offer to both Voltas and PAIC to buy their equity. The Indian government gave concessions to the company, Pepsi was allowed to increase its turnover of beverages component to beyond 25 per cent and was no longer restricted by its commitment to export 50 per cent of its turnover. The government approved more than US$ 400 million worth of investment of which over US$ 330 million has already been invested. The government also allowed PepsiCo to set up a new company in India called PepsiCo India Holdings Pvt Ltd, a wholly owned subsidiary of PepsiCo International, which is engaged in beverage manufacturing, bottling and exports activities as Pepsi Foods Ltd. Since then, the company has bought over bottlers in different parts of India along with Dukes, a popular soft-drink brand in western India to consolidate its market share. This was followed by an introduction of Tropicana juice in the New Delhi and Bangalore markets in 1999. Currently, soft drink concentrate, snack foods and vegetable and food processing are the key products of the company. Pepsi considers India, along with China, as one of the two largest and fastest growing businesses outside North America. Pepsi has 19 company owned factories while their Indian bottling partners own 21. The company has set up 8 Greenfield

sites in backward regions of different states. PepsiCo intends to expand its operations and is planning an investment of approximately US$ 150 million in the next two three years.

Removal of Quantitative Restrictions and Reservation Policy


The Indian government has abolished licensing for almost all food and agro-processing industries except for some items like alcohol, cane sugar, hydrogenated animal fats and oils etc., and items reserved for the exclusive manufacture in the small scale industry (SSI) sector. Quantitative restrictions were removed in 2001 and Union Budget 2004-05 further identified 85 items that would be taken out of the reserved list. This has resulted in a boom in the FMCG market through market expansion and greater product opportunities.

Central and state initiatives


Various states governments like Himachal Pradesh, Uttaranchal and Jammu & Kashmir have encouraged companies to set up manufacturing facilities in their regions through a package of fiscal incentives. Jammu and Kashmir offers incentives such as allotment of land at concessional rates, 100 per cent subsidy on project reports and 30 per cent capital investment subsidy on fixed capital investment upto US$ 63,000. The Himachal Pradesh government offers sales tax and power concessions, capital subsidies and other incentives for setting up a plant in its tax free zones. Five-year tax holiday for new food processing units in fruits and vegetable processing have also been extended in the Union Budget 2004-05. Wide-ranging fiscal policy changes have been introduced progressively. Excise and import duty rates have been reduced substantially. Many processed food items are totally exempt from excise duty. Customs duties have been substantially reduced on plant and equipment, as well as on raw materials and intermediates, especially for export production. Capital goods are also freely importable, including second hand ones in the food-processing sector.

Food laws
Consumer protection against adulterated food has been brought to the fore by "The Prevention of Food Adulteration Act (PFA), 1954", which applies to domestic and imported food commodities, encompassing food color and preservatives, pesticide residues, packaging, labeling and regulation of sales.

DATA ANALYSIS AND INTERPRETATION


The collected data were not easily understandable, so I like to analyze the collected data in a systematic manner and interpreted with simple method. The analysis and interpretation of the data involves the analyzing of the collected data and interpretation it with pictorial representation such as bar charts, pie charts and others. Gender: Gender play vital role in purchase decisions. Gender classified on sex Basis i.e. male and female. Gender classification is requiring to marketer because different gender exhibit different perception towards products. In classification of gender the following number is used to know their perception Sex Male Female Total No. of respondents 35 65 100 Percentage 35 65 100

Interpretation: 35% of the respondents are male and 65% of the respondents are female. From the above table we can conclude that, the majority of the respondents belong to female group.

Occupation: Occupation is also influences a persons consumption pattern. A blue Collar worker will buy work cloths, work shoes and lunch boxes. Similarly the FMCG products are purchased by various occupants. The following occupants of the respondents are classifies for the data collection. Occupation Business Employees House wives Others No. of respondents 20 10 65 05 Percentage 20 10 65 05

Interpretation: 20% of the respondents are business, 10% of the respondents are Employees, and 65% of the respondents are house wives, 05% of the Respondents are others group.

Purchasing F actor
Identification of various factors plays a vital role in consumer behavior study. The various factors such as quality, price easy available etc. is influencing lot and influences positively. The following data reveals how various factors are influencing to buying of FMCG products. Factors No of respondents Percentage Quality 38 38 Brand 28 28 Price 20 20 Easy availability 14 14 Others 0 0 Total 100 100

Interpretation: 38% of respondents buying FMCG products for its Good Quality, 28% of respondents use for its Band Name,20% of its Price Consideration, 14% of its easy availability of respondents buying FMCG products. Quality:

Company has two responsibility in a quality centered. First, they must participate in formulating strategies and policies designed to help the company win through total quality excellence. Second they must deliver marketing quality alongside production quality. This helps to company to attract more number of customers to their products. Hence I try to collect information related to quality of FMCG products. Opinions Durability Freshness Taste Others Total No of respondents 35 45 20 00 100 percentage 35 45 20 00 100

Interpretation: As per the data, 35% of the respondents buy the milk due to Thickness, 45% of the respondents for Freshness, and 20% of respondents for Taste. Quality takes vital role in every organization. From the above table we can conclude that majority of the respondents expressed that FMCG product

Opinion towards Products:


The behavior of users after his commitment to a product has been collected with respect product and terms of satisfaction with rating scale. The following are the data obtained related to FMCG products. Analysis of Rating towards FMCG products Ratings No of respondents Percentage Excellent 25 25 Good 48 48 Average 22 22 Poor 05 05 Total 100 100

Interpretation: 25% of the respondents rated that FMCG products are excellent. 48% of the respondents rated as good, 22% of the respondents rated as Average Quality. 05% of the respondents rated that FMCG products are Poor. From the above table we can conclude that majority of the respondents rated FMCG are of Good Quality

Purchasing Place:
Purchase place is also important to know where users choose their Purchase point. This helps to marketer to design various promotion and distribution programmers. The data is collected to know the various purchase place and availability. Easy available Yes No Total No of respondents 95 05 100 percentage 95 05 100

Interpretation: 95% of the respondents said that they are getting FMCG products easily. Only 05% of the respondents disagree with the easy available of FMCG products. From the above table we can conclude that majority of the respondents getting the FMCG products easily from the dealers or retailers

Value for the Money:


Consumers always think while paying price to the products such as how much we are paying towards products and how much we are getting. This data is gathered to know what value they are receiving from the FMCG Products. Response Yes No Total No of respondents 96 04 100 percentage 96 04 100

Interpretation: 96% of the respondents feel that they get the value for money they paid. Only 04% of the respondents feel that they are not getting the value for money what they paid. From the above table we can conclude that majority of the respondents are agreed that they are getting the value for money they paid.

Influence to Others to Buy Products:

Post experience & benefits will help organization in obtaining the additional sale. In this connection feedback its act as an influence to others to adopt the product the user survey has conducted to identify what an extent user recommends to others. The data has been extracted & it is as follows. Recommend Yes No Total No of respondents 95 05 100 percentage 95 05 100

Interpretation: 95% of the respondents recommended FMCG products, 05% of the respondents not recommended FMCG products to others. From the above table we can conclude that majority of the respondents recommended FMCG products.

LIMITATION
India needs around US$ 28 billion of investment to raise food processing levels by 810 per cent. In the personal care segment, the lower penetration rate also presents an untapped potential. Enhanced rural spends spell positive for the FMCG sector as rural markets are growing faster than urban. Positive for FMCG companies with large part of revenue coming from Rural India due to increased focus in Rural Development and increased allocation under NREGA and RKVY.
The Indian FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4

billion in 2015.

SUGGESTION & CONCLUSIONS


1. It is found in the survey that females are the main decision maker for the FMCG products. As per the data, 65% of female and 35% of male makes purchase decision. 2. Based on the occupation of the customer, it is found in the survey that 65% are the housewives and 35% are from various occupations such as a businessman, employee, farmers, etc for the FMCG products. 3. The main purchasing factors for the FMCG products are Quality and Brand image. The data reveals that 42% influences on Quality and 32% influenced for the Brand. 4. 88% of the total respondents are using product since from a long time. The majority of the respondents are using FMCG products from more than 3 years. 5. It is found in the survey that customer are influencing through Word of Mouth Conclusions: From the survey conducted it is observed that FMCG products have a good market share. From the study conducted the following conclusions can be drawn. The factors considered by the customer before purchasing FMCG products are freshness, taste, durability and easy availability. Finally I conclude that, majority of the customers are satisfied with the FMCG products because of its good quality, reputation, easy availabilities. Some customers are not satisfied with the FMCG products because of high price, lack of availability, spoilage and low shelf life etc. therefore, if slight modification in the marketing programme such as dealers and outlets, promotion programmers, product lines etc., definitely company can be as a monopoly and strong market leader.

QUESTIONNAIRE 1. Name 2. Occupation: a. Self-employed: [ ] c. House wife: [ ] b. Professional: [ ] d. Student: [ ]

3. What is the most important factor that matters while buying an FMCG? a. Quality: [ ] b. Price: [ ] c. Service: [ ] 4. How did you come to know about the FMCG product? a. By friends/family: [ ] b. Direct mailers: [ ] c. Press Ads: [ ] d. Reference website: [ ] e. T.V. Ads: [ ] 5. Which configuration would you decide on while buying an FMCG? a. Intermediaries: [ ] b. Standard: [ ] c. Latest / Advanced: [ ] 6. Are you satisfied with the quality of the product? a. Yes: [ ] b. No: [ ] 7. Do you think the price of FMCG product is high / low compared to Competitors product? a. Very good: [ ] b. High: [ ] c. Average: [ ] d. Same: [ ] 8. How often do you buy this product of FMCG? a. Daily: [ ] b. Monthly: [ ] c. Weekly: [ ] d. Occasionally: [ ] 9. What is your opinion about the performance of FMCG product? a. Outstanding: [ ] b. excellent: [ ] c. Good: [ ] d. Average: [ ] 10. Do the various schemes / promotional activities affect your purchase? a. Yes: [ ] b. No: [ ] 11. Suggestion (if any): __________________________________________________________ __________________________________________________________ __________________________________________________________ __________________ Date: SIGNATURE

BIBLIOGRAPHY

BOOKS:

Kothari, C.R, Interpretation and repot writing, Research Methodology, Second Edition, New Delhi, New Age International (P) Limited, 2004, Pg.344-359.

SITES www.fmcg.com www.google.com www.msn.com www.dabur.com www.hcl.co.in