Fast Moving Consumer Goods (FMCG)

Report On

Buying Behavior of FMCG Products

Submitted Submitted By: The Akanksha Sharma Ahmedabad Campus Sharma Upadhyay

To: Authorities, Anil Selin Gurjar Shailesh Hiral Gusai

Ahmedabad Campus

Acknowledgement
We consider our proud privilege to express deep sense of gratitude to Mr. Himanshu Vaidya for his admirable and valuable guidance, keen interest, encouragement and constructive suggestions during the course of the project. We would also like to express our hearty gratitude to our faculty guides, Prof. Jaydeep Banerjee and Mr. Nitesh Khanna of Unitedworld, Ahmedabad for their valuable guidance and sincere cooperation, which helped us in completing this Singapore business trip project. Last, but not the least, we sincerely thank all the members of our team for their immense support and assistance extended during the course of this project and in making it a valuable experience.

From: nksha Sharma Sharma Selin Gurjar Shailesh Upadhye Hiral Gusai Ahmedabad Campus Aka Anil

Table of Content
1. Executive summary

1-1 2. Introduction 2-3 3. Overview of FMCG 3 4. FMCG in 2006 4 5. Comparison between FMCG in 2005 & 2006 4-5

6. Sectors outlook 5-7 7. Scope of FMCG 8 8. Growth prospects 8-11 9. Top players in FMCG sector 11 10. 12 11. 12. 15 13. Research methodology 16-19
14. Analysis

Secondary players Review of literature Research objectives

12-14

19-60 15. 16. 63 17. References 18. Questionnaire 66-68 64-65 Conclusion Suggestions & recommendations 61-62

Executive Summary
In this research the researchers have put an effort to understand the buying behavior of the consumers towards Indian FMCG products in Singapore.
1. In this report, the researchers have first of all given a

brief review about FMCG sector as a whole.

2.

Then we have given a review of the findings of some of the researches that has already been conducted by various researchers.

3. Then we have enumerated our research objectives. 4. Then we have given the panoramic view regarding the

topic.
5. Then we have described our research methodology i.e.,

the

sample

unit,

sample

size,

sampling

region,

sampling procedure that we have used in our report.

6. We have used stratified random sampling as our

sampling procedure.
7.

Then we have analyzed the data which was collected by a questionnaire.

8. Then we have concluded the findings of the survey. 9. Then

finally,

we have given few

suggestions

&

recommendations regarding the topic.

Introduction
There was a time when the FMCG companies ignored Singapore market, they took no any interest to produced or sell products in Singapore markets except India. It was the initial stage of FMCG companies in India. As per as the time had passed, the strategy and marketing style of FMCG companies had been changed. The international market is the one of the best opportunity for the FMCG sector in the India. It is wider for the FMCG. As the income level of the international consumers increasing, the demand of FMCG is increasing continuously abroad. Fast moving consumer goods (FMCG) are popularly named as consumer packaged goods. Items in this category include all consumables (other than groceries/pulses) people buy at regular intervals. The most common in the list are toilet soaps, detergents, shampoos, tooth paste, shaving products, shoe polish, packaged food stuff, household accessories, extends to certain electronic goods. These items are meant for daily or frequent consumption & have a high return. A major portion of the monthly budget of each household is reserved for FMCG products. The volume of products circulated in the economy against FMCG products is very high, as the number of products the consumer uses, is

comparatively very high. Competition in FMCG sector is very high resulting in high pressure on margins. FMCG companies maintain intense distribution network. Companies spend a large portion of their budget on maintaining distribution networks. New entrants who wish to bring their products in the national level need to invest huge sums of money on promoting brands. Manufacturing can be outsourced. A recent phenomenon in the sector was entry of multinationals and cheaper imports. Also the market is more pressurized with presence of local players in Singapore markets.

Overview of FMCG Sector

FMCG is an acronym for Fast Moving Consumer Goods, which refer to things that we buy from local supermarkets on daily basis, the things that have high turnover & are relatively cheaper. After 4 years of dull performance in both revenues & profits, FMCG sector has now, i.e., since 2005, gained the momentum, principally because of the smaller companies that have substantially improved their market shares at the cost of larger players, & in some cases, the regional players. If we carefully observe the FMCG index & BSE index, we would realize that the returns on money invested in FMCG

index are much lower than the returns in benchmark index. The FMCG sector has under performed the benchmark BSE sensex in 2006. Though both the indices were close to each other till august 2006, however, in the later part of the year the sensex surpassed the FMCG index by a reasonable margin.

Comparison of 2006 and 2005

After two years of sinking performance of FMCG sector, the year 2005 has witnessed the FMCGs demand growing. Strong growth was seen across various segments in FY06. With the rise in disposable income and the economy in good health, the urban consumers continued with their shopping spree. The international demand grew at around 11%, while both the domestic sector registered a growth of around 8%. Packets and sachets contributed to the highest growth in Singapore areas. depends on two factors:

Growth in FMCG

Increase in penetration and consumption in Singapore markets Change in aspirations and tastes of the urban

population abroad

Both these factors contributed to growth in 2006. Besides demand, prices also increased, because of which

only the selected consumers moved up in the value chain. The large format retail stores in metros also stimulated sales, even if on a very small base. Some companies absorbed higher input prices, while others were able to pass on the cost to the consumers.

Sectors Outlook
FMCG is the fourth largest sector in the Indian Economy with a total market size of Rs.60,000 crores. FMCG sector generates 5% of total factory employment in the country and is creating employment for three million people, especially in small towns and rural India. According to a CII A T Kearney Report, the FMCG sector in India is expected to grow at a compounded growth rate (CAGR) of 9% to a size of Rs.1,43,000 crores by 2010 from Rs. 93,000 crores at present. With a growth of 52.5%, the BSE FMCG index has, during the last 1 year outperformed the sensex, which could manage a growth of 41% only. A well established distribution network, intense competition between the organized & unorganized segments, low operating costs, strong branding characterizes the market.

The large consumer base, particularly in Singapore market, and the growing middle class open up huge opportunities to FMCG companies to take the consumers to branded products and offer new generation products.

The sector's lack-luster performance in the last few years was due to price competition and increase in raw materials cost. However, in the FY06, the sector has witnessed a double-digit growth in profits and revenues. The sector has registered an up trend in growth across categories, such as health supplement, shampoo, toothpaste, hair oils, and mosquito repellant, as shown in table below:

Sales Value Growth % Categories 2004-2005 2005-2006 Apr.2006Sept. 2006

Health -5% Supplement (Chyawanprash) Shampoo Toothpaste Hair Oils Mosquito Repellant 10% 5% 9% 13%

0%

23%

23% 6% 18% 10%

19% 16% 23% 29%

Source: CII A T Kearney Report, (2000) Sector Financials 31-03-2006 Net Sales Sales Growth Profit Tax after 164,196 10.8% 19,595 16.6% 31-03-2005 148,241 2.0% 17,001 -24.2% 65,810 645,477 In millions 31-03-2004 145,380 21,008 63,072 551,971

PAT Growth

Market 74,746 Capitalization Enterprise Value Return Capital Employed (ROCE) P/E Ratio on 47.1% 26.7% 662,540

51.0% 27.1%

45.5% 21.0%

Source: CII A T Kearney Report, (2000)

Scope of the FMCG Sector

The Indian FMCG sector has a market size of US $13.1 billion. FMCG sector is expected to grow by over 60% by 2010. That will translate into an annual growth of 10% over a period of 5 years. It has been estimated that FMCG sector will rise from around Rs. 56,500 crores in 2005 to Rs. 92,100 crores in 2010. Hair care, household care, male grooming, female hygiene, & the chocolates & confectionary categories are estimated to be the fastest growing segments, says an HSBC Report. Though the sector witnessed a slower growth in 2002 04, it has been to make a fine recovery since then. For example, Hindustan Levers Limited (HLL) has shown a healthy growth in the last quarter. An estimated double-digit growth over the next few years shows that the good times are likely to continue.

Growth Prospects
FMCG sector is also likely to benefit from growing demand in the international market. Because of the low per capita consumption for almost all the products in the country, FMCG companies have immense possibilities for growth. And

if the companies are able to change the mindset of the consumers, i.e. if they are able to take the consumers to branded products and offer new generation products, they would be able to generate higher growth in the near future. It is expected that the international income will rise in 2007, boosting purchasing power in abroad. However, international Indian goods consumption accounts for more than 40% consumption in major FMCG categories such as personal care, fabric care, and hot beverages. In Singapore, home and personal care category, including skin care, household care and feminine hygiene, will keep growing at relatively attractive rates. Within the foods segment, it is estimated that processed foods, bakery, and dairy are long-term growth categories in both domestic and Singapore.

Indian Competitiveness and Comparison with the World Markets: The following factors make India a competitive player in FMCG sector: 1. Availability of raw materials

Because of the diverse agro-climatic conditions in India, there is a 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 produces caustic soda and soda ash, which are required for the production of soaps and detergents. The availability of these raw materials gives India the location advantage. 2. Labor cost comparison

Low cost labor gives India a competitive advantage. India's labor cost is amongst the lowest in the world, after China & Indonesia. Low labor costs give the advantage of low cost of production. Many MNC's have established their plants in India to outsource for domestic and export markets.

3.

Presence

across

value

chain

Indian companies have their presence across the value chain of FMCG sector, right from the supply of raw materials to packaged goods in the food-processing sector. This brings India a more cost competitive advantage. For example, Amul supplies milk as well as dairy products like cheese, butter, etc.

Top Players in FMCG Sector

1. Hindustan lever limited (HLL) 2. ITC (Indian Tobacco Company) 3. Nestle India 4. GCMMF (AMUL) 5. Dabur India 6. Asian Paints (India) 7. Cadbury India 8. Britannia Industries 9. Procter & Gamble Hygiene & Health Care 10. Marico Industries

Secondary Players

1. Colgate-Palmolive (India) Ltd. 2. Godrej Consumers Product Ltd. 3. Nirma Ltd. 4. Tata Tea Ltd. 5. Parle Agro 6. H. J. Heinz

Review of Literature
International market is one of the best opportunities for the FMCG sector. In some sense we can say that international market is future of FMCG. 1. Basu Purba (2004), suggested that the lifestyle of urban consumers is changing. Urban Indian market and the marketing strategy have become the latest marketing buzzword for most of the FMCG majors. She takes into consideration the study of National Council for Applied Economic Research (NCAER). According to the NCAER projections, the number of middle and high-income households in international area is expected to grow from 140 million to 190 million by 2013. In urban India, the same is expected to grow from 65 million to 79 million. Thus, the

absolute size of international market is expected to be double that of urban India.

As per our concern of the research, it is a detail study of different FMCG products used by international consumers. It will provide detail information about consumer preferences towards a good number of FMCG products which is too unique and different from those previous researches.

Research objectives

To understand the demand pattern of FMCG products in the international market.

To know the amount of household income spent on the consumption of FMCG products.

To understand the image of the products in the eyes of the international consumers.

Research methodology Data collection

Sample unit:
1. 2. 3. 4. working people (including men & women) college students school students senior citizens

Sample size:
1. 2. 3. 4. working people: 32% college students: 29% school students: 23% senior citizens: 16%

Sampling region:
1. The researchers have selected Singapore, as their area

of study.
2. We have chosen Ang Mo Kio, Little India, Tampines and

Orchard as her areas of research. In these areas she can easily meet working people (both male & female), school students, college students & senior citizens.

Sampling procedure:

The researcher will take stratified random sampling as the sampling procedure.

Data collection method:

1.

Primary data: it will be collected with the help

of a self administered questionnaire. This questionnaire aims to gather information related to various Branded products.

2.

Secondary data:

it will be collected with the

help of books, research papers, magazines, news papers, journals, internet, etc.

Research instruments: Questionnaire design:

As the questionnaire is self administrated one, the survey is kept simple and user friendly. Words used in questionnaire are readily understandable to all respondent. Also technical jargons are avoided to ensure that there is no confusion for respondents.

Analysis

(Considering only the buyers buying Indian Origin Goods And Data comprising only of Indian goods.)
1. Which soap u prefer to use?

The reaction of people towards various Indian SOAP brands can be tabulated in the following manner: Brands Percenta ge Lux 36 Dettol 22 Lifebuoy 18 others 24

In the survey that the researcher conducted, it could easily be concluded that LUX, the product of HUL was highly in demand. LUX, the product of HUL covers 36% of the market share. After LUX, the other brands (EXCEPT LUX, DETTOL, LIFEBUOY) covers 24% of the market share. This is then followed by DETTOL, the product of RECKITT BENCKISER with a market share of 22%, which is then followed by LIFEBUOY, the product of HUL with a market share of 18%.

This data can be graphically explained with the help of the following bar graph:

de ma nd o f so a p bra n ds

40 35 30 25 pe r ce nt a ge 20 15 10 5 0 br a nds lux de t t o l life buo y o t he rs

2. Which pack u prefer to use?

In order to determine the income pattern of the consumers, it was necessary for the researcher to distribute the consumers on the basis of their demand for the various packs of SOAP brands available in the market. However, the reaction of people towards various packs of SOAP can be tabulated in the following manner: Family pack (3 in 1) 44

Packs of soaps Percentage

Single pack 56

In the survey that the researchers conducted, they tried to differentiate amongst people, with below average household income, average household income & above household income. This classification can be done on the basis of the daily expenditure that people make. 56% consumers demand single pack. 44% consumers demand family packs i.e. 3 in 1 pack.

This data can be graphically explained with the help of the following bar graph:

d e m a n d o f p a c ks o f s o a p

60 50 40 p e r c e n t a3 0 ge 20 10 0 p a c ks pr e fe r r e d b y customers s in g le p a c k fa m ily p a c k ( 3 in 1 )

1. Which tea u prefer to use?

The reaction of people towards various TEA brands can be tabulated in the following manner: Brooke Bond 28

Brands Percenta ge

Tata Tea 32

Taj Mahal 18

Others 22

In the survey that the researchers conducted, it could easily be concluded that TATA TEA, the product of TATA has a market share of 32%. This is followed by, BROOKE BOND, with a market share of 28%. Followed by other brands (EXCEPT TATA TEA, BROOKE BOND, TAJ MAHAL) with a market share of 22%. This is finally followed by TAJ MAHAL, the product of HUL which holds18% of the market share.

This data can be graphically explained with the help of the following bar graph:

dem and of tea brands

35 30 25 20 pe rce nta ge 15 10 5 0 bra nds tata tea b ro o ke bo n d taj mahal othe rs

2. Which tea pack u prefer to use?

In order to determine the income pattern of the consumers, it was necessary for the researchers to distribute the consumers on the basis of their demand for the various packs of TEA brands available in the market. However, the reaction of people towards various TEA packs can be tabulated in the following manner: Medium pack 32

TEA packs percentage

Sachet 48

Large pack 20

In the survey that the researcher conducted, she tried to differentiate amongst the people, with below average household income, average household income & above household income. This classification can be done on the basis of the daily expenditure that people make. However, it can be concluded that sachets are most commonly used by the people .i.e., 48% consumers demand sachet packs. 32% consumers demand medium pack.20% consumers demand large pack.

This data can be graphically explained with the help of the following diagram:

d e m a n d o f t e a p a c ks

50 40 30 pe rcenta ge 20 10 0 p a c ks p r e fe r r e d b y c u s t o m e r s sachet m e d iu m p a c k la r g e p a c k

3. Which tooth paste u prefer to use?

However, the reaction of people towards various TOOTH PASTES can be tabulated as follows: Pepsoden t 27

Brands Percenta ge

Colgate 35

Close Up 22

Others 16

In the survey that the researcher conducted, it could easily be seen that COLGATE, the product of COLGATE PALMOLIVE is the market leader, which covers 35% of the total market. After that, PEPSODENT, the product of HUL is demanded by the customers, which covers 27% of the market share. Followed by CLOSE UP, the product of HUL is demanded by the customers, which covers 22% of the market share. Which is then followed by others brands (EXCEPT PEPSODENT, COLGATE, CLOSE - UP), which covers 16% of the total market share.

This data can be graphically explained with the help of the following bar graph:

dem and of tooth paste

35 30 25 20 pe rcenta ge 15 10 5 0 bra nds pepsodent c o lg a t e c lo s e u p othe rs

4. Which pack u prefer to use?

In

order

to

determine

the

income

pattern

of

the

consumers, it was necessary for the researcher to distribute the consumers on the basis of their demand for the various packs of TOOTH PASTE brands available in the market. However, the reaction of people towards various TOOTH PASTE packs can be tabulated in the following manner: Tooth paste pack Percentage Medium pack 48

Small pack 34

Family pack 18

In the survey that the researcher conducted, she tried to differentiate amongst the people, with below average household income, average household income & above household income. This classification can be done on the basis of the daily expenditure that people make. However, it can be concluded that 34% consumers demand small packs. 48% consumers demand medium packs. 18% consumers demand large pack.

This data can be graphically explained with the help of the following graph:

d e m a n d o f p a c ks o f to o th p a s te

50 40 30 pe rcenta ge 20 10 0 p a c ks p r e fe r r e d b y c u s t o m e r s s m a ll p a c k m e d iu m p a c k f a m ily p a c k

5. Which detergent u prefer to use?

The reaction of people towards various DETERGENT brands can be tabulated in the following manner: Brands Percenta ge Surf 27 Rin 35 Tide 22 Others 16

In the survey that the researcher conducted, it could be easily concluded that RIN, the product of HUL captures 35% of the total market share. This is followed by SURF, the product of HUL which has a market share of 27%. This is followed by TIDE, the product of PROCTER & GAMBLE which has a market share of 27%. This is finally followed by other brands (EXCEPT SURF, RIN, TIDE) which captures 16% of the market share.

This data can be graphically explained with the help of the following bar graph:

dem a nd o f deterge nts

35 30 25 20 pe rce nta ge 15 10 5 0 brands surf r in t id e others

6. Which pack u prefer to use?

In

order

to

determine

the

income

pattern

of

the

consumers, it was necessary for the researcher to distribute the consumers on the basis of their demand for the various packs of DETERGENT brands available in the market. However, the reaction of people towards various DETERGENT packs can be tabulated in the following manner: Detergent packs Percentage Medium pack 27

Sachet 43

Family pack 30

In the survey that the researcher conducted, she tried to differentiate amongst the people, with below average household income, average household income & above household income. This classification can be done on the basis of the daily expenditure that people make. However, 43% consumers demand sachet packs. 30%

consumers demand family packs. 27% consumers demand medium packs.

This data can be graphically explained with the help of the following bar graph:

de m a nd o f de te rge n t p a cks

45 40 35 30 25 pe rcenta ge 20 15 10 5 0

sachet m e d iu m p a c k f a m ily p a c k

p a c ks p r e fe r r e d b y c u s t o m e r s

7. Which shampoo u prefer to use?

The reaction of people towards various SHAMPOO brands can be tabulated in the following manner:

Brands Percenta ge

Clinic plus 33

Sunsilk 25

Head & shoulders 28

Others 14

In the survey, that the researcher conducted it can easily be concluded that CLINIC PLUS, the product of HUL, captures the major portion of the market with a market share of 33%. This is followed by HEAD & SHOULDERS, the product of PROCTER & GAMBLE which holds 28% of the market share. This is followed by SUNSILK, the product of HUL which holds 25% of the market share. Finally followed by other brands (EXCEPT CLINIC PLUS, SUNSILK, HEAD & SHOULDERS) with a market share of 14%.

This data can be graphically explained with the help of the following bar graph:

demand of shampoo

35 30 25 20 pe rce nta ge 15 10 5 0 brands c lin ic p lu s s u n s ilk h e a d & s h o u ld e r s others

8. Which pack u prefer to use?

In

order

to

determine

the

income

pattern

of

the

consumers, it was necessary for the researcher to distribute the consumers on the basis of their demand for the various packs of SHAMPOO brands available in the market. However, the reaction of people towards various SHAMPOO packs can be tabulated in the following manner: Shampoo packs Percenta ge Small pack 32 Medium pack 28 Family pack 17

sachet 23

In the survey that the researcher conducted, she tried to differentiate amongst the people, with below average household income, average household income & above household income. This classification can be done on the basis of the daily expenditure that people make. However, 32% consumers demand SMALL PACK. 28% consumers demand medium pack. 17% consumers demand large packs.

This data can be graphically explained with the help of the following bar graph:

d e m a n d o f s h a m p o o p a c ks

35 30 25 20 pe rcenta ge 15 10 5 0 p a c ks p r e fe r r e d b y c u s t o m e r s sachet s m a ll p a c k m e d iu m p a c k la r g e p a c k

9. Which biscuits u prefer to use?

The reaction of people towards various BISCUITS brands can be tabulated in the following manner: Marie gold 24

Brands Percenta ge

Good Day 38

Parle G 21

Others 17

In the survey, that the researcher conducted, it can easily be concluded that GOOD DAY, the product of BRITANNIA holds a major market share of 38%. This is followed by MARIE GOLD, another product of BRITANNIA which holds 24% of the market share. After that, PARLE- G, the product of PARLE, holds 21% of the market share. This is followed by other brands (EXCEPT MARIE GOLD, GOOD DAY, PARLE- G) which hold a market share of 17%.

This data can be graphically explained with the help of the following bar graph:

d e m a n d o f b is c u it s

40 35 30 25 p e r c e n t2a0g e 15 10 5 0 brands m a r ie g o ld good day p a r le G others

10.

which hair oil u prefer to use?

The reaction of people towards various HAIR OIL brands can be tabulated in the following manner: Parachut e 37 Dabur Amla 29 Dabur Vatika 19

Brands Percenta ge

Others 15

In the survey, that the researcher conducted, it can easily be concluded that PARACHUTE, the product of MERICO captures 37% of the total market share. This is followed by DABUR AMLA, the product of DABUR which captures 29% of the total market share. This is followed by DABUR VATIKA, another product of DABUR which captures 19% of the market. And after that, followed by other brands (EXCEPT PARACHUTE, DABUR AMLA, DABUR VATIKA) captures 15% of the market share.

This data can be graphically explained with the help of the following bar graph:

d e m a n d o f h a ir o il

40 35 30 25 p e r c e n t a0 g e 2 15 10 5 0 brands parachute d a b u r a m la d a b u r v a t ik a others

11. Which pack u prefer to use?

In order to determine the income pattern of the consumers, it was necessary for the researcher to distribute the consumers on the basis of their demand for the various packs of HAIR OIL brands available in the market. However, the reaction of people towards various HAIR OIL packs can be tabulated in the following manner: Hair oil Small pack 32 Medium pack 41 Large pack 27

packs Percentage

In the survey that the researcher conducted, she tried to differentiate amongst the people, with below average household income, average household income & above household income. This classification can be done on the basis of the daily expenditure that people make. However, 41% consumers demand medium packs. After that, 32% consumers demand small pack. 27% consumers demand large packs.

This data can be graphically explained with the help of the following bar graph:

d e m a n d o f p a c k s o f h a ir o il

45 40 35 30 25 pe rcenta ge 20 15 10 5 0

s m a ll p a c k m e d iu m p a c k la r g e p a c k

p a c ks p r e fe r r e d b y c u s t o m e r s

12. Which cream u prefer to use?

The reaction of people towards various CREAM brands can be tabulated in the following manner: Fair & lovely 32

Brands Percenta ge

Ponds 28

Ayur 14

Others 26

In the survey, that I conducted, it can easily be concluded that FAIR & LOVELY, the product of HUL, holds the major market with a share of 32%. This is followed by, PONDs, another product of HUL, which holds 28% of the market share. This is followed by, other brands (EXCEPT, PONDs, FAIR & LOVELY & AYUR), which captures 26% of the market share. This is followed by AYUR, the brand of AYUR ACADEMY OF NATURAL BEAUTY (AANB) which holds 14% of the total market share.

This data can be graphically explained with the help of the following bar graph:

demand of cre ams

35 30 25 20 pe rcenta ge 15 10 5 0 brands ponds f a ir & lo v e ly ayur others

13. Which coffee u prefer to use?

The reaction of people towards various COFFEE brands can be tabulated in the following manner:

Brands Percenta ge

Bru 26

Nestle 32

Nescafe 32

Others 10

In the survey, that the researcher conducted, it can be easily concluded that all the brands are facing tough competition. NESTLE, the product of NESTLE S.A. & NESCAFE, another product of NESTLE S.A., shares equal market share of 32% each. This means that they are in a very tough competition. This is followed by BRU, the product of HUL which holds, 26% of the market share. While the other brands hold only 10% of the market share.

This data can be graphically explained with the help of the following bar graph:

d e m a n d o f c o ffe e

35 30 25 20 pe rcena tge 15 10 5 0 brands bru n e s t le n e s c a fe othe rs

Conclusions
In this report, it can very easily be concluded that HUL, holds major portion of the FMCG market. It holds major shares in the soap, detergent,

shampoo & creams category. HULs products are mainly in demand, because they provide these products in different packs.. So, they prefer buying the small or the medium packs. However, large or family packs are still been bought by few consumers, who are from a well off families. In the case of TEA, TATA holds a major share. In the case of COFFEE, NESTLE & NESCAFE holds the major share. Rural consumers favor TATA because it is an old organization & it has gained a lot of BRAND EQUITY which finally creates BRAND LOYALTY. In these products, consumers do get brand loyal, because they do not want to take a risk with their tastes. So they prefer sticking to one brand. These organizations supply their products in various packs (small, medium & large), considering the buying capacity of their consumers. As in the case of BISCUITS, BRITANNIA holds the major market share. Rural consumers favor BRITANNIA because it is an old organization & it has gained a lot of BRAND EQUITY which finally creates BRAND LOYALTY. In case of BISCUITS, consumers do get brand loyal, because they do not want to take a risk with their tastes. So they prefer sticking to one brand. These organizations supply their products in various packs (small, medium & large), considering the buying capacity of their consumers.

In the case of TOOTH PASTES, COLGATE PALMOLIVE holds a major market share. Consumers are very concerned about their health, so if any product suits them they prefer sticking to that product. And this product is also available in various packs, so various consumers can use it according to their buying capacity. In the case of HAIR OILS, MERICO holds the major market share. MERICO is a much known organization & its product PARACHUTE has reached all the places. So it is a known product, which has created a good amount of goodwill for the organization. Consumers have confidence & trust in their product. Therefore, they prefer buying it.

Suggestions & recommendations

The researchers would like to suggest the following points, so that the organizations can easily sell their products to their consumers:
1. However, the demand of a product is also affected by

its life cycle. If the product is in the introduction stage, then it will definitely take some time to capture the market, because in the introduction stage, consumers are not much aware about the product. Therefore, its the responsibility of the organization to create awareness amongst the consumers. 2. They should adapt rigorous marketing strategies, in order to sustain in the market. 3. There is immense competition in this sector. Therefore, the organizations should try to gain competitive advantage against their competitors. 4. They should try to reach as many people as possible. 5. For the organizations that are not much popular amongst the consumers, should adopt Sales Promotion, as their marketing strategies. 6. Application of 4As has also become an important task for all the organizations.

(*4A=

Availability,

Affordability,

Acceptability,

Awareness)

References 1. 2. 3. 4. 5. 6.
1.htm Kearney, A T, CII Report, (2000) Center for Monitoring Indian Economy (CMIE) Statistical Outline of India (2001-02), NCAER National Council of Applied Economic Research (NCAER) Indian readership survey (IRS) http://www.upgov.nic.in/upinfo/census01/cen01-

7. Lucknow Development Authority 8. http://www.naukrihub.com/india/fmcg/overview/ 9. http://en.wikipedia.org/wiki/Fast_moving_consumer_go

ods

10.

*4A= Availability, Affordability, Acceptability, Awareness

Questionnaire 1. 2. 3. 4. 5. name: occupation: monthly salary: address: phone no.:

6. which soap u prefer to use? a. Lux b. dettol c. lifebuoy d. others 7. which pack u prefer to use? a. single b. family pack ( 3 in 1) 8. which tea u prefer to use?

a. b. c. d.

tata tea brooke bond taj mahal others

9. which pack u prefer to use? a. sachet b. medium pack c. large pack

10. a. b. c. d. 11.

which tooth paste u prefer to use? pepsodent colgate close up others

which pack u prefer to use? a. small pack b. medium pack c. family pack a. b. c. d. which detergent u prefer to use? surf rin tide others

12.

13.

which pack u prefer to use? a. sachet b. medium pack c. large pack which shampoo u prefer to use? a. clinic plus

14.

b. sunsilk c. head & shoulders d. others 15. a. b. c. d. which pack u prefer to use? sachet small pack medium pack large pack

16. a. b. c. d. 17. a. b. c. d. 18.

which biscuits u prefer to use? marie gold good day parle - G others which hair oil u prefer to use? parachute dabur amla dabur vatika others

which pack u prefer to use? a. small pack b. medium pack c. large pack a. b. c. d. which cream u prefer to use? ponds fair & lovely ayur others

19.

20.

which coffee u prefer to use? a. bru

b. nestle c. Nescafe d. others