Online Branding in FMCG Sector

Introduction Fast Moving Consumer Goods (FMCG) or Consumer packaged goods are products that are sold quickly
at a relatively low cost. The examples include non-durable goods such as soft drinks, toiletries and grocery items. Though the profit made on FMCG product is relatively small, they generally sell in large quantities, so the cumulative profit on FMCG products can be substantial. A Consumer usually spends a minimum effort while purchasing. However much of marketing activities have evolved from this class of products, where consumer show low involvement, get wider choice and allured by a host of inducement. The term FMCG refers to those goods that are generally used up or replaced over a short period of time. Some FMCG products are highly perishable like meat, fruit, and vegetables, baked goods and dairy products. Some FMCG products have high turnover rates like alcohol, pre-packaged foods, toiletries, soft drinks and cleaning products. FMCG Sector is an ever growing and booming sector in India. Fast Moving Consumer Goods (FMCG) are popularly known as consumer packaged goods. The most common products of FMCG are Soap, Detergent, Shampoo, Tooth Paste, Shaving Products, Shoes Polish, Packaged Food Stuff, Household accessories, and extended to certain electronic goods. The consumption of FMCG products are very frequently. Each Household expands a major portion of their income on FMCG products. Therefore the money circulation in this sector is very high, numbers of products are very big and also the competition is very high in this sector. FMCG Sector is the fourth largest sector in the economy and creates employment for more than 3 million people. The total FMCG Market is in excess of R. 85,000 Crores. It is currently growing at double digit growth rate and is expected to maintain a high growth rate. Based on the prime factor behind their buying, fast moving consumer goods can be further subdivided into three categories: Characteristics Examples Convenience Grocery Items Type of Product Shopping Fashion Item, Specialty Appliances, Fancy
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Jyoti.prakash.pgp13@iilm.edu
Major Motive
Easy availability
Clothing Spend Effort to choose the item of personal taste
Knowledge prior to purchase Effort spend to acquire products Frequency of purchase Willingness to accept substitutes Buying behavior
High minimal regular high
medium moderate Season/occasion moderate
Goods Make long deliberations before making the final selection of brand Low As much as necessary varies none
Low information search
Comparing option Intensive to acquire best consultation within budget before actual purchase
Staples: these are those goods that consumers purchase on a regular basis such as a toilet soap, detergent, toothpaste, sauce and biscuits etc. a buyer purchase such goods when stocks reach a critical level. Impulse goods: these are those goods that are purchased without any planning or search effort. These goods are usually procured due to external stimulus. Such as chocolates, Soft drink, and potato chips etc. So these products are displayed in the Kirana store because buyer may not have thought of buying item until spotting them. Emergency Goods: These are purchased when that particular need arises Such as umbrella or pullovers. The need for umbrella arises during rainy season and customer buy umbrella. Characteristics of FMCGs Product From Consumers Perspective: An FMCG is characterized by a few distinct factors. As it is clear from the name fast moving, FMCG has a low shelf life. A part from this these are other characteristics of FMCG products.
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Frequent purchase: as it is clear from the name itself, FMCG goods are purchased frequently by the consumers. Such as salt, soap etc it is an inexpensive product and is also available in almost all the shops around house. Low involvement: FMCGs are low involvement goods by their nature. When a consumer goes into a shop to purchase salt or a bottle of tomato ketchup, the consumer rarely makes an effort to choose the item. Generally if the brand a consumer asks for not be available, in most cases the consumer will take whatever is offered in that place. There is another factor which works in this direction is that there is usually a very large variety of options available in this product range. So if the prefer brand is not available, the consumer still has a large choice. Exception is everywhere, so a few exceptions is here also to this rule. Products like personal hygiene products, cigarettes etc. although satisfying all the other criteria of FMCGs but Shows a high level of brand loyalty. For example when a consumer gets used to a particular brand of shampoo, consumers do not easily accept any other brand. Low Price: FMCGs Products are generally low priced product. A consumer may go for an option to be high priced for a popular brand name. For an example, the most expensive toilet soap may cost Rs. 50. The goods such as soaps, detergents, potato wafers, tea are high volume products with a wide potential market base. Due to low price FMCGs products are fall into low involvement category. This is the reason why people shows less interest while purchasing these products.
From the Marketers Perspective Low Contribution Margin: because of high volume and cut throat competition, FMCGs products are generally sold low prices which are very close to their production costs. Therefore the margin offers for dealer/ distributors are low. Due to intense competitions, marketer sets prices as low as possible and ensures turnover through large volume sales and quick disposal of stock. High Volumes: the FMCG market is characterized by high volumes. For an example a medium sized family uses two or three soaps in a month. If
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the number is multiplied by the no. of such family using the name soap throughout the country, it will be a very large number. This phenomenon is noticed for FMCGs products like toothpaste, biscuits, soap etc. therefore these goods are manufactures in very large volumes. High Stock Turnover: Other characteristic of FMCG is that they have a high stock turn over. The FMCG products are bought frequently and at regular intervals. These goods have a short span of life. Therefore shopkeepers are willing to trade in these goods more readily because they find a high stock turn over which allows them to rotate their capital in a month or so. Extensive Distribution Network: The other characteristics of FMCG market is extensive distribution networks. Consumer preferences in this product are not rigid. A consumer may ask for any brand that he has just seen in an advertisement or the friends told him. Usually a buyer asks for a brand and the brand is not available in stock at that shop, he might be purchase some other brand due to low involvement in this product segment. A buyer may purchase a brand given by shopkeeper only. In other words we can say that the brand loyalty is not very prevalent among a large section of market. In the case of impulse goods consumer will generally require the product only on sight. So it becomes necessary for company to make sure that their product is well distributed in the market. For this a FMCG companies always use extensive distribution channel to reach their product at customer hand before their competitors.
SWOT MAJOR SEGMENT OF FMCG INDUSTRIES Household Care
ANALYSIS
Personal Wash:- this segment of FMCG can be divided into three sub segment : Premium, Economy & Popular. The penetration level of soaps is approx. 92 percent and it is available in 5 million retail stores, in which 75 percent are in the rural areas. HUL is the leader in this segment with market share of 53 percent. Godrej is at second position with a market share of 10 percent. The total market size of personal wash is estimated to be around Rs. 8300 Cr.
Growth in rural demand is expected to increase due to increase in disposable incomes, they are moving up towards premium products. Detergent: there is high degree of competition in this segment. The penetration level is also high. With rapid urbanization, the demand for small pack size and sachets is increasing day by day basically in the rural areas. Due to which regional & small players are dominating in the market. These unorganized players have a major share of the total volume of this market. The size of this market is estimated to be Rs. 12000 Cr. In washing Powder segment, HUL is the leader with 38 percent market share. Other major players are Henkel, proctor & gamble, and Nirma. Personal Care Hair Care:- the hair care market is estimated to be around Rs. 3800 Cr in India. This market can be segmented in to shampoos, hair oil, hair gels, and hair colorants & conditioners. Marico dominant in the hair oil segment with a market share of 33 percent whereas Dabur has second position with a market share of 17 percent. Skin Care:- the skin care market is estimated at around Rs. 3400 Cr. This market is at primary stage in India. With increase in disposable income, increasing standard of living, better product & their availability, people are becoming aware about personal grooming. Hindustan Unilever is the major player of this segment with a market share of 54 percent. Cavinkare occupies the second place with a market share of 12 percent and Godrej has a market share of 3 percent after Cavinkare. Oral Care:- Oral Care market is estimated at around Rs. 3500 Cr. This market canbe segmented into- Toothbrushes ( 17% ), Tooth Powder (23%), and Tooth Paste (60%). Colgate-Palmolive Dominated the Toothpowder/Toothpaste segment with a market share of 49 percent, and Hul has a second position with a market share of 30 Percent. In the toothpowder market Dabur & Colgates are major players. Shampoos:- the Indian shampoo market is estimated at around Rs. 2700 Cr. It contributes the 40% of total shampoo sale. Again the HUL is the leader in this segment with a market share of around 23 Percent. Today many variant of
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shampoos is available in this segment and this market is growing day by day because of availability of product in every range.
FOOD & BEVERAGE: Food Segment:- The major players in this segment are HUL, Godrej, ITC, Nestle, Amul etc this category had 18 major brand giving tough competition to each other and the market size is around to be Rs. 4600 Cr. Innovation such as ready to eat product is seen in recent years. Coffee:- The indian beverage industry faces over supply in segment like coffee and tea. More than 50 percent of market share is in unacked. The major player are Nestle, Tata Tea and HUL in this segment. Tea:- The major market share in this segment is dominated by unorganized players. More than 50 percent market share is capture by them. HUL and Tata Tea are leading brand in this segment. Growth Prospect Large Market: India is second largest populated country in this world with a population of more than 1.150 Billions and according to estimates by 2030 india total population will be around 1.450 Billion and india will be the largest populated country in this world. As FMCG products are directly related to population so FMCG industry is expected to maintain a robust growth rate.
CHANGING PROFILE AND

MIND SET OF CONSUMER As we can see that the consumer profile and mind sets are changing. They are looking at Money For Value rather than Value For Money. They are willing to pay for good products and brands because of rising disposable income and changing lifestyles etc. we have seen a sharp increase in the sales of packaged water and water purifier in recent years which is a sign of that consumers are switching from economy to premium products. Spending Pattern an increase in spending pattern has seen in Indian FMCG market. And this increase is seen not only in urban areas as well as rural area also. an increases in disposable income of household has leads to growth rate in FMCG goods. FMCG- Evolution 1950s-80s Low investment in FMCG sector Consumer had low purchasing power. Government emphasis was on small scale sector. Bid companied like HUL focused on urban market only Post Liberlization Entry of Multinational Companies as restrictions are lifted. Company focus shifted to getting the rural consumer first because of a huge untapped market. Some big companies like Nestle still focused on urban areas. Market was hit by sachets which earn a huge success in rural areas as the people were not willing to pay a big amount at a time. Nirma entered in the market and change the focus to value for money in the 70s Mushrooming of regional brand Post liberalization Jyoti laboratories, Ghari detergent and aanchor toothpaste giving the nation-wide brands a run for their money.
Hindustan Unilever
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Hindustan Unilever Limited(HUL) is the largest consumer goods company in India. Its headquarter in Mumbai, Maharastra. It is owned by the Unilever which is a British-Dutch Company with 52% majority stake in this company. In 1931, Unilever set up its first Indian subsidiary named Hindustan Vanaspati Manufacturing Company, followed by Lever brothers India Limited(1933) and united traders limited(1935). These three companies merged and formed a company named HUL in November 1956. The company was renamed as Hindustan unilever limited in june 2007. It has a distribution network of over 2 million retail outlets across India and its products are available in over 6.4 million outlets in the country. What an extensive distribution network it has. According to a Nielsens survey report, 2 out of 3 Indian uses HUL products. HUL is the market leader in Indian Consumer Products. Its presence in over 20 consumer categories such as tea, soap, shampoos, detergent etc. over 700 million Indian consumers use HUL products. Seventeen of HULs brands got place In ACNielsen Brand Equity list of 100 Most Trusted Brands Annual Survey (2011). PRODUCTS Company own 35 major Indian brands. Its brands Includes: Homecare Brand Active Wheel Detergent Comfort Fabric Softeners Cif Cream Cleaner Rin Detergent and bleach Domex disinfectant/toilet cleaner Sunlight detergent and colour care Vim dishwash Surf Excel detergent and Gentle wash Food Brand Bru coffee Annapurna Salt and aata Lipton Tea Brook Bond Tea( Taj mahal, Taaza, Red Label, 3 Roses)
Kissan squashes, ketchups, juices & jams Kwality Walls ice cream Knorr soups & meal makers and soupy noodles Modern Bread, ready to eat chapattis and other bakery items Personal Care Brnds Axe Deodorant and after shaving lotion Breeze Bauty Sop Aviance Beauty Solutions LEVER Ayush Therapy ayurvadic health care and personal care products Clear anti-dandruff hair products Close up tooth paste Denim shaving Products Clinic Plus Shampoo and oil Dove bar and skin cleansing, hair care range, lotions, creams, and Deodorants Hamam Lifebuoy soaps and handwash range Denim Shaving products Lakme beauty produts and salons Fair & Lovely- fairness products Liril Soap Pears Soap Lux Soap Pepsodent toothpaste Rexona Soap Sure anti-perspirant Ponds talcs and creams Sunsilk shampoo Vaseline petroleum jelly skin care lotions
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INTRODUCTION OF NESTLE INDIA Nestle S.A. is the largest food and nutrition company in the world. It was founded in Vevey, Switzerland. It came into existence with the merger of Anglo-Swiss milk company. Anglo-Swiss company was established in 1867 by two brothers George Page and Charles Page. Its first product was Farine Lactee Nestle formulated by Henri Nestle to provide and improved infant nutrition. Today the company is operating its business in 86 countries around the world and nearly 283,000 people are working in Nestle. Nestle India is a subsidiary of Nestle S.A. of Switzerland. It was started with seven factories and a large number of co-packers. Nestle India is a vibrant company that provides global standards products to Indian consumers. Nestle India is committed to long term sustainable growth and satisfaction of shareholders. The honesty, integrity and fairness in all aspects of its business is the beauty of Nestle India. Company has earned trust and respect from the every area of society, where it operated its business. The Nestle India is most respected companies and amongst the top wealth creators of India.
The company continuously focuses its effort to better understand the changing life styles of Indian people and fulfill Indian customer needs to provide its wide range of products. The culture of innovation and renovation within the company and freedom to access the Nestle Groups technology and extensive research and development facilities, gives it a distinct advantage in these efforts. It helps the company to create value that can be useful over the long term by offering consumers a wide range of high quality safe products at affordable prices.
HISTORY OF NESTLE INDIA
The relationship of India with Nestle started in 1912, When India started its business with Nestle Anglo-Swiss condensed milk company limited, importing and selling finished products in the Indian market. After the independence in 1947, When the Indian government created economic policies and emphasized the need for local production, Nestle responded to Indians aspiration very well and set up its first factory in 1961 at Mogra (Punjab) was followed soon after by set up its second plant in 1967 at (Chalodi Tamilnadu). Then after, Nestle India set up two factories first in 1989 at Nanjangud (Karnataka) and second in 1993 at Samalkha (Haryana). This was succeeded by the starting of two more factories in 1995 and 1997 at Ponda and Bicholim (Goa) respectively. The seventh factory was set up in 2006 at Pantnagar (uttarakhand). PRODUCTS OF NESTLE INDIA Nestle is a very big company. Nestle has 6000 brands with a wide range of product. Nestle India manufactures product of international standard under internationally famous brand names such as;
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Dabur India Limited is the fourth largest FMCG company in India with revenues of US$ 1 bilion and market capitalization of US$ 4 billion. It has built
on a legacy of quality and expertise of over 125 years. Dabur operates in product categories like oral care, Hair care, Health care, Home care, Skin Care & foods. Leading consumer goods company with a turnover of Rs. 5283 crores( FY(12) in India. It has 17 ultra-modern manufacturing units spread over the globe. It has 2 major strategic business unit- consumer care business and Internation business Division. It has 2 subsidiary group companies- Dabur international and NewU and several step down subsidiary like Dabur Egypt pvt lts, Dabur Nepal pvt lta, Asian comsumer care Pakistan, Asian consumer care Bangladesh, naturelle LLC ras al khaimah uae, afraican consumer care Nigeria, weilfield international uae, and jaquline inc. usa Its product marketed in over 60 countries
Proctor and Gamble is one of the largest and among the fastest growing consumer goods companies in India. It was established in 1964. It has over 650 million consumers in india. Its presence in the beauty and grooming segment, health & well being segment as well as the house hold care segment with trusted brands like Vicks, Tide, Ariel, Olay, Whisper, Gillette, Pampers, Ambipur, Pantene, Head & shoulder, Oral-B etc. it has five plants in India and over nine contract manufacturing. Brands of Proctor and Gamble Head & Shoulder Ambi Pur Ariel Duracell Gillette Olay Oral-B Pampers Pantene Tide
Vicks Well Whisper
ITC limited is an Indian public conglomerate company. Its headquartered in Kolkata. It has four segments: FMCG, Hotels, Paperboards, Paper & Packaging, and Agriculture Products. Its annual turnover is approx. $7 billion and has a market capitalization of over $33 billion. Over the last few years, ITC has rapidly scaled up presence in its newer FMCG businesses comprising branded Packaged foods, Education and Stationary Products, Lifestyle Retailing , Personal Care Products, Incense Sticks ( Agarbatti ) and Safety Matches with segment revenues growing at an impressive compound annual growth rate of 38% during the last 5 years.
Gujarat Cooperative Milk Marketing Federation Ltd.(GCMMF) is indias largest food product marketing organization with annual turn over of US$ 2.5 billion(2011-12). It is the apex organization of the dairy cooperatives of Gujarat, Popularly known as AMUL. It operates through 47 sales offices and has an extensive dealer network of approx. 5000 dealers and 10 lakhs retailers.
It has one of the largest networks in India. Its product range comprises milk, milk powder, ghee, health beverage, pizza chesse, chesse, butter, chocolates, paneer, ice-cream, and traditional indian sweets etc.
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Cadbury is a confectionery company. It is owned by Kraft Foods and is the second largest confectionery company in the world after MARS incorporated. Cadbury operated in more than 50 companied and its headquarter is in Uxbridge, London, England. Cadbury India ltd. is a part of Kraft food and began its operation in 1948 by importing chocolates. Today it has 6 companies owned- manufacturing at thane, Pune, Gwalior, Bangalore, Himachal Pradesh and Hyderabad. It has 4 sales offices in Kolkata, Mumbai, New Delhi and Chennai. The corporate office of Cadbury India is in Mumbai. Cadbury India has a value market share of over 70% in the chocolate category. In the milk food drink segment Bournvita is the leading malted food drink in the country. Cadbury India operated in Five Categories Beverages Chocolate Confectionery Candy Gum Biscuits Some of the key brands of Cadbury are Cadbury Dairy Milk, 5 Star, Bournvita, Bournville, Perk, Halls, Bubbaloo, Oreo, Tang, Eclairs, Gems, Celebrations.
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Marico is one of the Indias leading consumer product and Services Company in the area of health and beauty. Its headquarter is in Mumbai. It operates its business in more than 25 countries across Asia and Africa. The company turnover is Rs. 31.3 billion (approx. USD 695 Million) in 2010-11. It has a vast portfolio of brands like Saffola, Parachute, Nihar, Hare & Care, Manjal, Revive and Mediker etc. in addition, the company has recently acquired the erstwhile personal care from Reckitt Benckiser and now own popular brands like Zatak, Livon, Set Wet and other personal care brands.
The story of Britannia reads almost like fairy tale. Once upon a time in 1982, a biscuit company was started a nondescript house in Calcutta (Kolkata) with an initial investment of only Rs. 295. The company is known as Britannia today. Britannia Industries Ltd. is an Indian food-products corporation. The companys headquarter is in Kolkata. It is famous for its Britannia and Tiger brands of biscuits, which are very popular throughout the country. It has an estimated market share of 38%. Britannia brands reach more than 300 million homes across India More than 40% of Britannia consumption happens on rural India Britannia sells about 6 billion packs of biscuits products every year Britannia products are available through more than 3 million stores across country Britannia has a leader presence in very frequently consuming Bakery & Dairy Categories.
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Asian Paints is an Indian chemicals company. Its headquarter is in Mumbai, India. It manufactures a large range of paints for decorative and industrial use. Asian Paints is Indias Largest Paint Company and Asias 3rd Largest Paint Company With a turnover of Rs, 96.32 billion. Asian Paints operates in 17 countries and has 24 paint manufacturing facilities in the world. It has consumer in over 65 countries throughout the world. Asian Paints manufactures and markets Industrial and decorative coatings. Products and Brands In decorative paints it has four segment like Exterior wall Finishes, Interior Wall Finishes, Wood Finishes, and Enamels. Industrial Coating: Protective coating, Floor Coating, Road Marking Automotive: Body coating, Plastic Coating
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Prior to the arrival of internet, Branding was most closely associated with images which evoked feelings and emotions associated with particular brand of products or category of products.
The term online has specific meaning in regard to computer technology and communications. It is the condition of being connected to a network of computers or other devices. Online marketing is also known as internet marketing, web marketing or emarketing. It is referred to as the marketing of products or services over the internet. Brand is a name or symbol that is commonly used to identify a company or its products and distinguish them from their competitors. Branding is a type of marketing that helps a company to target their demographic audience. Online branding then is exactly the same like developing a strategy to market to target audience over the internet. Company can target their audience through a variety of different means including online advertisements, social media, online classified ads and other internet methods. Branding plays an integral part behind the success of a product whether it is online or offline. In real life scenario, brand is the identity on the web and differentiate the product from their competitiors product.onine branding decides the perception of targeted audience towards their ecommerce store. Branding online A company can use following branding medium to communicate their message to target audience. Domain Name Company domain name will be the name of their ecommerce store and used for effective online branding strategy. Company should choose a name that is unique, easy to remember and highlights the tpe of products sold in their ecommerce store. Logo
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When we think about any company, we are reminded of its logo before everything else like apple, windows. An appealing logo creates a lasting impression in the mind of consumers and has a global appeal. A meaningful logo is always helpful in online branding. Many successful online business used images as their logo to communicate easier since consumer easily relate these images/logos. Ecommerce Storefront Visitors remember online stores by their shopping experience. Company should build unique shopping experience by using innovative website templates with special emphasis on important things and navigation, product display and description, self-explanatory images. It can become major differentiation factor in online marketing. Tips for Online Branding Be consistent Online branding would require targeting visitors through multiple channels. Company should consistent in terms of their approach, their message, and their treatment given to a viewer through all these channels. Appeal to the target market Entire branding effort should be focused on a section of a large consumer segment. Company should communicate their message clearly and precisely. Their message should appeal to target audience and make them realize the benefit of visiting their stores. Be innovative Innovation is a key word in marketing these days. We can see the innovation in its all concept. Here in branding also innovation is a key element to get attention from visitors. Company should understand the likes and dislikes of their target audience before begin the work of online branding. Company should keep a close eye on the behavior of their visitors. Online branding is a major factor, which will help company to convert their visitors into consumers.
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Online Advertising....The Indian Scenario The share of India in online advertisement in world is almost negligible. But it has a huge potential in developing countries like India Where, Internet users are growing very fast. Indian Companies are also showing interest in this field. They have started promoting their products or services online and online sales even. Currently Finance Sector is most dominating sector in online advertising which accounted about 40% of total online advertisement in India. Some of the leading companies from this sector are ICICI, HDFC, UTI, SBI and Citibank, Whereas FMCG Companies accounted for 20 % of the total online advertisement in India. Consumer Durables Company accounted for 15 % of total online advertisement in India. Media sector accounted for 10% and rest 15% is occupied by others.
Current Scenario In Online Advertising

Finanace FMCG Consumer Durables Media Others
15% 10% 40%
15% 20%
In India most popular form of online advertising is banner advertising because it is easy to create, place and use. India has to cover a lot of grounds to reach the level of online advertisement as a country like U.S. There are many obstacles in the growth of Indian online advertising like High cost, Low education, Psychological fears of IT, and low awareness level. Many Indian companies are doubtful on the effectiveness of online advertisement.
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The IAMAI estimated in 2008 that Internet advertisement would grow at 40% and will reach a value of Rs. 750 Crore by 2012. And according to a report of FICCI-PWC in March 2010 India has already crossed a figure of Rs. 950 Crores. It shows that how fast online advertising is increasing in India. Building FMCG Brand through Internet Advertisement Advertisers forecast that online will represent a growing share of their budget over the next 2 years, especially in FMCG sectors. EIAA conducted a survey to understand the role of online advertising and attitudes towards the Internet amongst key advisers across Europe. They found that company already spent over 5% of their media budget online and 74% of respondent said that the internet is an vital component of their advertising strategy. And according to the Forecast of EIAA online as spend is to rise by over 65%. The way Indian companies use internet for marketing their products Most Indian companies are opening to marketing on the internet. Although there is a low penetration of performance in these initiatives, there is also brandcentric communication across industries which do not gather many headlines. The typical activities include: Banner on Horizontal sites Search Engine Marketing Sponsorship of properties Ad Network buys Advertisement medium at a glance The FMCG products used every day by everyone. That means there is a huge scope for the newcomers and there is a very healthy competition in this sector. The company tries to make huge profits and they are competing hard to its competitor to capture the more market share. As the number of competitors is huge in the market the FMCG brands needs to have a credibility and trust. If the consumer will not trust on the brand the other brand would take the position in less time. So FMCG use various practices to strengthen their brands. Following are the some practices which are generally used by the FMCG companies.
TV Advertisement The FMCG companies spend a great portion of their advertisement budget on TV. Print Media Online Advertisement The reason why FMCG should be marketed on Web FMCG Companies need to market their products on the internet because these are brands that rely on the relationships they have with their consumers. When a consumer buys their favorite brand of any FMCG product it is because they feel a familiarity with their chosen brand. It is a relationship based on trust and developed out of years of quality delivery. The challenge for FMCG brands is to develop and maintain this relationship with their market base and not let them stray to other. According to Andy Taoushiani, MD Artifact Advertising and head of the Artifact Group, this is where they see marketing on the internet being vital for FMCG brands. Artifact Advertising's digital marketing company, Artifact Online, views the integration of online marketing activities into a typical FMCG marketing mix as such: TV/Radio/Print- selling product to a mass audience that fits their demographic, driving the consumer to the store. In store marketing- grab the consumer at point of purchase Online Marketing- a tool to establish, rewards, and revitalized the relationship to the consumers. Online marketing is a tool to encourage consumers to interact with company and entrench their loyalty to the brand.
The Internet Advantage As on branding medium online advertisement is blessed with many unique benefits which have pushed marketers to look upon this medium as a potential media in future. This can be classified as:
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Core Benefits The core benefits from online advertisement are unique and very critical influential factor for the advertising decision. Interactive Approach Context Sensitivity Augmented Benefits Cost Effectice Dynamic Customization Impact Measurement Peripheral Benefits Duration of exposure Low spillage Data base collection Creativity And Innovation
2. RESEARCH DESIGN 2.1 TYPE OF DESIGN

There are basically three types of designs: 1. Exploratory Research
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It helps to identify new problems. It helps in formulating a problem for developing hypothesis. Its basically informal research that we undertake to gain information on the problem identified in the project. Its basically used in conditions like to solve problems, define terms, and to collect the information. 2. Descriptive Research It helps to describe the characteristics of a particular individual; group. Its basically based on the definition of the population. It basically answers questions related to who, what, were, when, why and how. It has to basically focus on key areas like- developing an objective, selecting the method which will be used for collection of data, selecting a sample, collection of data, processing of data, analysis of data, and findings. IN OUR PROJECT WE HAVE USED DESCRIPTIVE RESEARCH. 3. Casual Research In this type of research the researcher tests the hypothesis of casual relationship between variables. As casual relationships are determined by use of experiments, and use of other methods.
2.2 DATA COLLECTION FROM SECONDARY SOURCES

Secondary data basically includes the published sources which have been collected originally from some other purpose. Sources are internal company records, government publications, reports and journals, trade professional and business associations. Internet, E-journals, Newspaper articles (The Times of India, Hindustan Times) and Research journals were also quite helpful.
2.3 DATA COLLECTION FROM PRIMARY SOURCES

Primary data is basically that which is gathered for project at hand e.g. through questionnaire and interviews. Primary data sources include company salesman. Middleman, consumers and businessman, trade association executive, and other executives. Widely used methods of gathering Primary data: 1. Survey Method Information gathered directly from the users either through personal interviews or mail questionnaire. 2. Observation Method Research data is gathered through observing and recording their actions in a marketing situation. The technique is highly accurate. Its rather an expensive technique. 3. Experimental Method
It involves carrying out a small scale trial solution to a problem, while at the same time attempting to control all factors relevant to the problem. The main assumption is that the test conditions are essentially the same as those that will be encountered later when conclusions derived from the experiment are applied to broader marketing area. 4. Panel Research In this respondents is contracted for more than one occasion and the information obtained to find out if there has been any in their taste demand or they want any special colour, size , quality, packaging of the product.
2.4 SCALING TECHNIQUES SCALING

Scaling is an extension of measurement. It involves creating a continuum upon which measured objects are located. It is a process of placing the respondents on a continuum with respect to their attitude.
PRIMARY SCALES OF MEASUREMENT

1. NOMINAL SCALE A scale whose numbers serve only as labels or tags for identifying and classifying objects with a strict one to one correspondence between the number and the objects. Common example includes social security members. 2. ORDINAL SCALE A ranking scale in which numbers are assigned to objects to indicate the relative extent to which some characteristic is possessed. Thus it is possible to determine whether an object has more or less of a characteristic than some other object. Common example is quality rankings, ranking of teams in tournament. 3. INTERVAL SCALE A Scale in which the numbers are used to rate objects such that numerically equal distances on the scale represent equal distances in the characteristic being measured. Common example is temperature scale. 4. RATIO SCALE The highest scale. It allows the researcher to identify or classify objects, rank order the objects, and compare intervals or differences. It is also meaningful to compute ratios of scale values. Common examples include height, weight and age. COMPRISON OF SCALING TECHNIQUES 1. COMPARATIVE SCALES Comparative scales involve the direct comparison of stimulus objects. For e.g. Respondents might be asked whether they prefer coke or pepsi.
2. NON COMPARATIVE SCALES It is referred to as monadic or metric scales; each object is scaled independently of the others in the stimulus set. SCALE EVALUATION 1. RELIABILITY Reliability refers to the extent to which a scale produces consistent results if repeated measurements are made. 2. VALIDITY Validity of a scale may be defined as the extent to which differences in observed scale scores reflect true differences among objects on the characteristics being measured, rather than systematic or random error. 3. GENERALIZABILITY It refers to the extent to which one can generalize from observations at hand to a universe of generalizations. In our project we had used nominal, ordinal scaling techniques. Along with these scaling techniques we had used likert five point scales.
2.5 QUESTIONNAIRE DEVELOPMENT AND PRE TESTING

If one wants to know what type of dentifrice people use, what they think of, televisions commercials, or why they buy particular brand. Thus the questionnaire method has come to be more widely used of the two data collection method. Many consumers are familiar with the telephone caller who greets them with we are making a survey and then proceeds them to ask a series of questions. Some interviews are conducted in person, others by telephone and others by mail. Each of these has a special advantage, disadvantage and limitations. The questionnaire method has a number of pervasive advantages and disadvantages. Discussion of particular variations will be more meaningful if these characteristics of general method are brought out first. A questionnaire consists of list of questions to be asked from the respondents and the space provided to record the responses. Questionnaires can be used for personal interviews, focus groups, mails and telephonic interviews. The choice among this alternative is largely determined by the type of information to be obtained and by the type of respondents from whom it is to be obtained. The common factor in all varieties of the questionnaire method is the reliance on verbal responses to questions written or oral. Questionnaire in our project consists of:
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1. Multiple choice questions. 2. Dicthomus. 3. Open ended. MULTIPLE CHOICE QUESTIONS Questions of this type offer the respondents an alternative to choose the right answer among others. It is faster, time saving and less biased. It also simplifies the tabulating process. OPEN ENDED QUESTIONS In this respondents are free to answer in their own words and express the idea they think are relevant, such questions are good as first questions or opening questions. They introduce the subject and obtain general reaction. DICTHOMOUS These are the questions that are Boolean in nature. These answers are straight forward and respondents have to answer them in a straight way. That means answer can be either yes or no.
BRANCHING QUESTIONS This is another kind of questions but we havent used this kind of questions in our questionnaire. From the name itself we can find that there will be a link between few questions. In this type of questions alignment of question is very important. NEED FOR A QUESTIONNAIRE 1. To minimise the error for better analysis. 2. To motivate the respondents to be cooperate in filling the questionnaire. 3. Information is collected in the form of answers to the questions which helps ion the further processing of the data.
PROCESS INVOLVED IN QUESTIONNAIRE DESIGN

1. To be specific about the information which is needed to solve out the problem 2. Selection of the type of the interviewing method which is suitable and which will be convenient. 3. Development of the questions which is to be included in the questionnaire. 4. Question wording and the structure is basically decided. 5. Pretesting of the questionnaire is done to find out the accuracy level of the questionnaire and the responses which will be undertaken later.
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Pretesting was basically done to determine the effectiveness of our survey questionnaire as it was necessary to pretest it before actually using it. So we did a pretesting of about 10 questionnaires from our target group of consumers. As Pretesting helped us to determine the strength and weaknesses of survey. A very important part of the questionnaire construction process is its piloting known as pre testing . This involved testing the research instrument in conditions as similar as possible to the research which basically helped us a lot in the overall process and helped in the final analysis. Pretest was conducted systematically, with potential respondents and using the same methods of administration .Aim of testing questionnaire was to minimise measurement error . It generated a lot of benefits as it reduced survey development time, reduced survey cost and Improved the quality of data collected.
2.6 SAMPLING TECHNIQUE

Sample design is a definite plan of obtaining some items from the whole population. The sample design used in this project is two states sampling that is cluster and convenience. In the probability sampling methods each item in the sample is chosen one at a time from a complete list of universe elements. In market research practice it will sometime be more expedient to select clusters or groups of universe elements rather than to choose sample items individually. Sampling methods in which universe elements are chosen in groups rather than individually are called cluster sampling methods .They are widely used in the sampling of human populations. When no complete universe listing exist a type of sampling is called area sampling may be the only practically feasible form of probability sampling. Steps included in sampling design process are: Target the population, designing the sampling frame, Selection of the sampling technique, Finding out the sample size and its execution.
SAMPLING METHODS
Sample design is a definite plan of obtaining some items from the whole population. The sample design used in this project is two state sampling that is probability and nonprobability sampling and total sample size was 100. The sampling technique may be broadly classified as Non probability and Probability. Nonprobability sampling depends on the personal judgement of the researcher rather than chance to select sample element. The researcher can decide what elements to include in the sample. A core characteristic of non-probability sampling techniques is that samples are selected based on the subjective judgement of the researcher, rather than random selection. Types of Non probability sampling techniques are; Convenience sampling- Members of the population are chosen based on their relative ease of access. To sample friends, co-workers, or shoppers at a single mall,
are all examples of convenience sampling. ( WE HAD USED THIS SAMPLING FOR OUR SURVEY) Judgemental sampling-The researcher chooses the sample based on who they think would be appropriate for the study. This is used primarily when there are a limited number of people that have expertise in the area being researched. Quota sampling-A quota is established (say 65% women) and researchers are free to choose any respondent they wish as long as the quota is met. Snowball sampling-The first respondent refers a friend. The friend also refers a friend, etc. In our market research the sampling technique we have used is NON PROBABILITY sampling technique. Probability sampling, sampling units are selected by chance. It is possible to pre specify every potential sample of a given size that could be drawn from the population, as well as the probability of selecting each sample. Types of probability sampling technique are; Simple random sampling- Is selected so that all samples of the same size have an equal chance of being selected from the entire population. Systematic sampling- The sample is chosen by selecting point and then picking every ninth element in succession from the sampling frame. Stratified sampling- Involves selecting independent samples from a number of subpopulations, group or strata within the population. Great gains in efficiency are sometimes possible from judicious stratification. Cluster sampling- Involves selecting the sample units in groups. For example, a sample of telephone calls may be collected at by first taking a collection of telephone lines and collecting all the calls on the sampled lines.
SAMPLING IN OUR PROJECT A) SAMPLING TECHNIQUE Non probability sampling (In which each element in the population does not have an equal chance of getting selected.) Under this we used the convenience sampling as we did our survey in the places that were convenient for us like malls and other public places. B) SAMPLE UNIT People who buy chocolates available in retail outlets and superstores. C) SAMPLE SIZE 100 respondents were taken as sample size. D) METHOD Direct interview through questionnaire. E) DATA ANALYSIS METHOD
Graphical method F) AREA OF SURVEY Delhi and NCR
2.7 FIELD WORK

a) Questionnaire was prepared keeping in mind the objectives of research in mind. b) Questions were asked to respondents as regards to their willingness to purchase chocolates. c) The help of questionnaires conducted direct interviews in order to get accurate information. d) We visited many respondents and asked them their real likings about any chocolates and got an idea how a chocolate should be? e) It is really a Herculean task to understand consumer behaviour as the definition suggests Consumer behaviour is a physical activity as well as decision process individuals engaged in when evaluating, acquiring, using and disposing goods and services. f) Each and every questionnaire was filled personally by the respondent.
http://books.google.co.in/books?id=ESJzaCJE3fQC&pg=PA26&dq=what+is+f mcg&q=what+is+fmcg&hl=en#v=snippet&q=what%20is%20fmcg&f=false
http://en.wikipedia.org/wiki/Hindustan_Unilever_Limited http://www.hul.co.in/aboutus/ourhistory/ http://www.dabur.com/default.aspx http://www.nestle.co.in/nestle_india_landing.aspx http://en.wikipedia.org/wiki/ITC_Limited http://www.itcportal.com/itc-business/fmcg/index.aspx http://www.pg.com/en_IN/company/pg-india.shtml http://www.amul.com/m/organisation http://www.cadburyindia.com/in/en/About/ourbusinessinIndia.aspx http://en.wikipedia.org/wiki/Cadbury_India http://www.marico.com/html/about/overview.php http://en.wikipedia.org/wiki/Britannia_Industries http://www.britannia.co.in/index.htm http://www.startupdunia.com/india-mobile/india-online-advertising-market-worth-rs-250-croresindia-mobile-advertising-is-rs-40-crores-862
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Online Branding in FMCG Sector

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Online Branding in FMCG Sector

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Introduction Fast Moving Consumer Goods (FMCG) or Consumer packaged goods are products that are sold quickly

Clothing Spend Effort to choose the item of personal taste

High minimal regular high

medium moderate Season/occasion moderate

Low information search

SWOT MAJOR SEGMENT OF FMCG INDUSTRIES Household Care

CHANGING PROFILE AND

HISTORY OF NESTLE INDIA

Vicks Well Whisper

Current Scenario In Online Advertising

15% 10% 40%

2. RESEARCH DESIGN 2.1 TYPE OF DESIGN

2.2 DATA COLLECTION FROM SECONDARY SOURCES

2.3 DATA COLLECTION FROM PRIMARY SOURCES

2.4 SCALING TECHNIQUES SCALING

PRIMARY SCALES OF MEASUREMENT

2.5 QUESTIONNAIRE DEVELOPMENT AND PRE TESTING

PROCESS INVOLVED IN QUESTIONNAIRE DESIGN

2.6 SAMPLING TECHNIQUE

Graphical method F) AREA OF SURVEY Delhi and NCR

2.7 FIELD WORK

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