CONSUMER BEHAVIOR WITH REFERENCE TO FMCG

In partial fulfillment of the Requirement for the award of Degree of Master of Business Administration (MBA) 2011-13

SUBMITTED TO:
Mr. SUMIT PRASAD
Department of Management Studies Bhimtal K.U. Nainital

SUBMITTED BY:
AJENDRA ADHIKARI
4TH SEMESTER

ACKNOWLEDGEMENT

I extend my sincere thanks to all those who helped me in the completion of this project. Without their undying help and guidance, this project would not be what it is. I specially extend my heartfelt thanks to my Faculty guide Mr. Sumit Prasad (Faculty of Department) for helping me at every step, and guiding me in every way possible. This project would not have been successful without his help and continuous guidance throughout. A special note of thanks also goes out to the people from various fields for giving me their precious time and helping me with this project. I also extend my appreciation towards my family who encouraged me and were by my side whenever I needed them.

AJENDRA ADHIKARI

MBA IV Semester

STUDENT DECLARATION
I am a bonafide student of MBA IV semester of Department of Management Studies, Bhimtal has under gone a research project on CONSUMER REFERANCE WITH FMCG This project has been undertaken as a partial fulfillment of the requirement for the award of degree of MBA, Kumaun University Nainital.

The project was executed during the winter break after the third semester under the guidance of Mr. SUMIT PRASAD (Faculty of Department) at DMS, Bhimtal.
Further, I declared that this project is my original work and the analysis and the findings are for academic purpose only. This project has not been presented in any seminar or submitted elsewhere for the award of any degree or diploma.

Place: - Bhimtal Date: - 06-04-2013 Counter Signed by:Mr. SUMIT PRASAD

Faculty of D.M.S. campus, Bhimtal.

INDEX
ACKNOWLEGEMENT DECLARATION

CHAPTER -1
INTRODUCTION Overview of FMCG Scope of FMCG Panoramic View

CHAPTER -2
Review Of Literature

CHAPTER -3
RESEARCH METHODOLOGY Research Objective Sample Unit .. Sample size Sampling reason.. Data collection method Research instruments.

CHAPTER -4
Data Analysis And Interpretation

CHAPTER -5
Findings And Conclusion

CHAPTER -6
Suggestion And Recommendation .

Limitation Bibliography Annexure

CHAPTER-1

INTRODUCTION

To define Consumer behavior: - It is the study of consumers and the processes they use to choose use /consume and dispose of products and services. A more in depth definition will also include how that process impacts the world. Consumer behavior incorporates ideas from several sciences including psychology, biology, chemistry and economics. How many times throughout the day do people make product decisions? If you stop to think about it, many product decisions are made every day, some without much thought. What should I wear? What should I eat? What am I going to do today? Many product decisions are answered routinely every day and they help move the economy of cities, countries and ultimately the world. Consumer Goods:- Products that are purchased for consumption by the average consumer. Alternatively called final goods, consumer goods are the end result of production and manufacturing and are what a consumer will see on the store shelf. Clothing, food, automobiles and jewelry are all examples of consumer goods. Basic materials such as copper are not considered consumer goods because they must be transformed into usable products. This was a time when the FMCG companies not very much interested in rural market, they took no any interest to produced or sell products in rural market in India. It was the middle 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 rural market is the one of the best opportunity for the FMCG sector in the India. It is wider and less competitive market for the FMCG. As the income level of the rural consumers increasing, the demand of FMCG is increasing continuously. 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 rural areas and state brands.

Overview of FMCG Sector

FMCG is a short form of Fast Moving Consumer Goods, which refer to things that we purchase from local supermarkets on daily basis, the things that have high turnover & are relatively cheaper.

FMCG in 2012
After 2 years of dull performance in both revenues & profits, FMCG sector has now, i.e., since 2008, 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. 5 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 underperformed the benchmark BSE sensex in 2009. Though both the indices were close to each other till august 2009, however, in the later part of the year the sensex surpassed the FMCG index by a reasonable margin. But yes in 2008 it has not given loss like other indexes. It was also in dull phase but not so very low like IT sector and Bank Index.

Comparison of 2010 and 2012

After two years of sinking performance of FMCG sector, the year 2010 has witnessed the FMCGs demand growing. Strong growth was seen cross 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 rural demand grew at around 11%, while both the urban and rural sector together has registered a growth of around 8%. Packets and sachets contributed to the highest growth in rural areas. Growth in FMCG depends on two factors: 1) Increase in penetration and consumption in rural areas 2) Change in aspirations and tastes of the urban population Both these factors contributed to growth in 2010. 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 high input prices, while others were able to pass on the cost to the consumers.

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 rural sector, 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 uptrend in growth across categories, such as health supplement, shampoo, toothpaste, hair oils, and mosquito repellant, as shown in table below:

Sales Value Growth % Categories Health Supplement 2009-2010 2010-2011 March.2011-Sept. 2012

(Chyawanprash) Shampoo Toothpaste Hair Oils Mosquito Repellant

-5% 10% 5% 9% 13%

10% 13% 9% 13% 16%

23% 18% 19% 18% 18%

Scope of the FMCG Sector

The Indian FMCG sector has a market size of US $200 billion. FMCG sector is expected to grow by over 15% 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 2008 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 2007 08, 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 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 highest growth in the near future. It is expected that the rural income will rise in 2007, boosting purchasing power in the countryside. However, the demand in urban areas would be the key growth driver over the long term. Also, increase in the urban population, along with increase in income levels and the availability of new categories, would help the urban areas maintain their position in terms of consumption. At present, urban India accounts for 66% of total FMCG consumption, with rural India accounting for the remaining 32%. However, rural India accounts for more than 20% consumption in major FMCG categories such as personal care, fabric care, and hot beverages. In urban areas, 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 rural and urban areas. 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, this is a large raw material base suitable for food processing industries. India is the largest producer of livestock, milk, sugarcane, coconut, spices and cashews 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 Unilever limited (HUL) 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 10. Marico Industries 11. Reckitt Benckiser

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

Panoramic View

India has a population of over 1 billion & 2 climatic Zones. Several religious & personal beliefs, 15 languages, different social customs & food habits categorize Indian consumer class. Besides this, India is also different in culture if compared with other Asian countries. Therefore, India has high distinctiveness in demand and the companies in India can get lot of market opportunities for various classes of consumers. Consumer goods marketers experience that dealing with India are like dealing with many small markets at the same time. Indian consumer goods market is expected to reach $500 billion by 2015. India has the youngest population amongst the major countries. These are a lot of young people in India in different income categories. Consumer goods marketers are often faced with a dilemma regarding the choice of appropriate market segment. In India they do not have to face this dilemma largely because rapid urbanization, increase in demand, presence of large number of young population, any number of opportunities is available. The bottom line is that Indian market is changing rapidly and is showing unprecedented consumer business opportunity. As the restrictions on foreign investments were relaxed in 1991, Multi-National Companies have been entering India since then.

Market Size in Market Share in % $ million 15 2007 Breakfast cereals Wafers, potato chips Washing Machines TV 2007 $=32 rupees 2009 $=42 rupees 2 6 2009 25 35 100 100 Indian MNCs Companies 2010 0 0 52 37 Indian MNCs Companies 2011 28 63

20 630

570 3,030

98 97

2 3

51 29

29 51

2012 $=53rupees Source: Center for Monitoring Indian Economy (CMIE)

With a population of 1 billion people, India is a big market for FMCG companies. Around 70% of the total households in India reside in the rural areas. The total number of rural households is expected to rise from 145 m in 2005 to 193 m in 2010, which represents the largest potential market in the world.

Rural and urban potential Urban Rural Population 2001-02 (m household) 53 135 Population 2009-10 (m household) 69 193 % Distribution (2001-02) 28 72 Market (Towns/Villages) 3,768 627,000

Indian consumer class can be classified according to the following criteria:

1) Income 2) Socio-Economic status 3) Age demographics 4) Geographical dispersion

Income based classification

India has a population of 1.095 billion people, comprising of 1/6th of the world population. India's population can be divided into 5 groups on the basis of annual household income. These groups are: 1) 2) 3) 4) 5) High income Upper middle income Middle income Lower middle income Lower income

The income classification does not represent a real scenario for an international business because the purchasing power of currencies differs significantly. The real purchasing power of Indian rupee is high than the international exchange value. In addition to that, income classification is not an effective tool to ascertain consumption and ownership trends in the economy.

Consumer Classification
According to National Council of Applied Economic Research (NCAER) these are 5 consumer classes that differ in their ownership patterns and consumption behavior across various segments of goods.

Consumer Classes The Rich The Consuming Class The Climbers The Aspirants The Destitute Total Source: NCAER

Annual Income in Rs. 2007 Rs. 215,000 and more 1.2 Rs 25- 215,000 Rs. 22-25,000 Rs. 16-22,000 Below Rs. 16,000 32.5 52.1 22 33 162.8

2009 2.0 52.6 71.6 28.1 23.2 180.7

20011 6.2 90.9 72.1 15.3 12.8 199.2

Change 216% 179% 37% -65% -61% 21%

The 5 classes of consumer households (consumer classification) show the economic development across the country based on consumption trends.

Socio economic classification

In addition to income classification and consumer classification, Indian households can also be segmented according to the occupation and education levels of the chief earner of the household (the person who contributes most to the household expenses). This is called as Socio-economic Classification (SEC), which is mainly used by market planners to

target market before launching their new products. SEC is made to understand the purchase behavior and the consumption pattern of the households. To understand the table, consider an example: A trader whose monthly household income (MHI) is more than that of a person in section A cannot be included in this SEC because his educational qualification or occupations do not qualify him for inclusion. Sec C constitutes households whose Chief Wage Earners are employed as:

Skilled workers Petty traders Clerk/Supervisor Shop owners

33% 12% 37% 18%

3/2th of them have studied till 10th or 12th class while the remaining 1/2th have studied till 9th class. Less than half of the Chief Wage Earners of households belonging to sections D & E are unskilled workers. Petty Traders are 18%, while Skilled Workers are about 28%. More than 80% of the population of upper strata consumers is living in the top 7 cities. Those top 7 cities are Mumbai, Kolkata, Delhi, Chennai, Ahmadabad, Bangalore, and Hyderabad. With increase in economic prosperity, this population (upper strata consumers) is growing at 10 percent annually.

The rural area is segregated in to: R1, R2, R3, and R2.

Education of chief

Type of House

wage earner Pucca Professional degree Graduation/ PG College SSC/HSC Class 2-Class 9 Up to class 2 Self-learning Illiterate R1 R1 R1 R2 R3 R3 R3 R2 Age demographics
India is a very young nation, if compared with some advanced and developed countries. Nearly two- thirds of its population is below the age of 35, and nearly 50 % is below 25. Marketers explain that the boom in the consumption level and leisure related expenditure is because of this young population. It will have a significant impact over the consumer goods market. In addition to that, it is expected that this will generate trade opportunities and continuous investment in the economy. There is huge potential for further consumption of goods and services due to the increased level of disposable income. The expenditure on essential goods and services has a high share in developing countries as compared with that of developed countries.

Semi-pucca R2 R2 R2 R3 R3 R3 R2 R2

Kuchcha R3 R3 R3 R3 R2 R2 R2 R2

Age distribution if Indian population (In Millions) Year/ Age Below 2 yrs 5-12 yrs 15-19 yrs 2009 113.5 221.2 122.2 2010 108.5 239.1 109.0 2011 119.5 233.2 90.7

20-32 yrs 35-52 yrs 55 & above Total Consumption Trends Food Essentials

279.1 239.2 118.7 1092.1

226.8 207.3 101.7 1012.2

222 178.1 88.7 932.2

25.68% 10.1% 2.9% 0.63% 2.25% 12.51% Less than 2% 3.25%

Essential Services (water, power, rent, and fuels) Clothing Footwear Medicare Transport & Communication Recreation, Education, and Culture Home Goods

Geographical dispersion
There is large difference in economic prosperity levels among several states in India, linked to the wealth creation from trade, industrial, and agricultural development. There are poor districts in many states, classified according to their market potential. India has 500 districts, out of which 150 districts (category A) and next 150 districts (category B) account for 78% and 15% of the national market potential respectively. Remaining 200 districts (category C) are backward and account for only 7% of national market potential. Category C districts have 20% of the geographical share

CHAPTER-2

REVIEW OF LITERATURE
Rural market is one of the best opportunities for the FMCG sector. In some sense we can say that rural market is future of FMCG. 1. Basu Purba (2007) suggested that the lifestyle of rural consumers is changing. Rural Indian market and the marketing strategy have become the latest marketing buzzword for most of the FMCG majors. He added the strategies of different FMCG companies for capturing rural market like Titans Sonata watches, Coco Colas 200ml bottle, different strategies of HUL and Marico etc. He 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 rural area is expected to grow from 120 million to 190 million by 2007. In urban

India, the same is expected to grow from 65 million to 79 million. Thus, the absolute size of rural India is expected to be double that of urban India. 2. Tognatta Pradeep (2007) suggested that, the economic growth in India's agricultural sector in last year was over 10%, compared with 8.5% in the industrial sector. This implies a huge market potentiality for the marketer to meet up increasing demand. Factors such as village psyche, strong distribution network and market awareness are few prerequisites for making a dent in the rural markets. The model is of the stolid Anglo-Dutch conglomerate Unilever Group, which has enjoyed a century-long presence in India through its subsidiary Hindustan Lever Ltd. It was Hindustan Lever that several years ago popularized the idea of selling its products in tiny packages. Its sachets of detergent and shampoo are in great demand in Indian villages. Britannia with its low priced Tiger brand biscuits has become some of the success story in rural marketing. 3. Aithal, K Rajesh (2007) suggested that rural markets are an important and growing market for most products and services including telecom. The characteristics of the market in terms of low and spread out population and limited purchasing power make it a difficult market to capture. The Bottom of the pyramid marketing strategies and the 2 A's model of Availability, Affordability, Acceptability and Awareness provide us with a means of developing appropriate strategies to tackle the marketing issues for marketing telecom services in rural areas. Successful cases like the Grameen Phone in Bangladesh and Smart Communications Inc in Philippines also provide us with some guidelines to tackling the issue. As per my concern of the research, it is a detail study of different FMCG products used by rural consumers. It will provide detail information about consumer preferences towards a good number of FMCG products which is too unique and different from those above researches.

CHAPTER-3

RESEARCH METHODOLOGY Research objectives

To understand the demand pattern of FMCG products in the rural & urban 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 consumers.

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 researcher has selected haldwani city and nearest villages. 2. He has chosen Main- Haldwani, Katgodam, and Lalkuan as his areas of research. In these areas He can easily meet working people (both male & female), school students, college students & senior citizens.

The population status of these areas can be shown in a tabulated manner, which is given as follows:

Area Haldwani Kathgodam Lalkuan Population is in approximate figures.

Population 3,00,000 50,000 37,000

Note: As the examiner can see that the population of areas (areas that are chosen by the research is) is very large, therefore the research is has stratified the area. He has chosen various areas that come under these areas.

Source: Local Development Authority Note: The researchers took these areas because these areas are near to various school & colleges. The researchers took school & college students as his sample unit. The researchers took these areas because these are various schools & institutes nearby these places.

Sampling procedure:The researcher will take Area 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.

CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

1. Which soap you prefers to use? The reaction of people towards various SOAP brands can be tabulated in the following manner: Brands Percentage Lux 36 Dettol 22 Lifebuoy 20 Others 22

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 brand (EXCEPT LUX, DETTOL, and LIFEBUOY) covers 22% 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 20%. This data can be graphically explained with the help of the following bar graph:
demand of soap brands

40 35 30 25 percentage 20 15 10 5 0 brands lux dettol lifebuoy others

2. Which pack you prefers to use? In order to determine the income pattern of the consumers, it was necessary for the research is to distribute the consumers on the basis of their demand for the various packs of Soaps brands available in the market. However, the reaction of people towards various packs of SOAP can be tabulated in the following manner:

Packs of soaps Percentage

Single pack 56

Family pack (3 in 1) 22

In the survey that the research is conducted, He 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. 22% consumers demand family packs i.e. 3 in 1 pack.

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

60 50 40 percentage 30 20 10 0 packs preferred by customers single pack family pack ( 3 in 1 )

3. Which tea u prefers to use? The reaction of people towards various TEA brands can be tabulated in the following manner:

Brands Percentage

Tata Tea 32

Brooke Bond 28

Taj Mahel 18

Others 22

In the survey that the research is 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 others brands (EXCEPT TATA TEA, BROOKE BOND, and 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:

demand of tea brands

35 30 25 percentage 20 15 10 5 0 brands tata tea brooke bond taj mahal others

4. Which tea pack you prefer to use? In order to determine the income pattern of the consumers, it was necessary for the research is 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:

TEA packs Percentage

Sachet 28

Medium pack 32

Large pack 20

In the survey that the research is conducted, He 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., 28% 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:
demand of tea packs

50 40 percentage 30 20 10 0 packs preferred by customers sachet medium pack large pack

5. Which tooth paste you prefer to use? In the initial years, the rural consumers preferred tooth powders, datoons etc. But from the last decade, the preference of consumers towards toothpaste has been changed. A huge number of toothpastes of different companies are sold in rural market. However, the reaction of people towards various TOOTH PASTES can be tabulated as follows:

Brands Percentage

Pepsodent 27

Colgate 35

Close Up 22

Others 16

In the survey that the research is 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 this 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:
demand of tooth paste

35 30 25 percentage 20 15 10 5 0 brands pepsodent colgate close up others

6. Which pack you prefer to use?

In order to determine the income pattern of the consumers, it was necessary for the research is 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

Small pack 32

Medium pack 28

Family pack 18

In the survey that the research is conducted, He 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 32% consumers demand small packs. 28% consumers demand medium packs. 18% consumers demand large pack.

This data can be graphically explained with the help of the following graph:
demand of packs of tooth paste

50 40 percentage 30 20 10 0 packs preferred by customers small pack medium pack family pack

7. Which detergent you prefer to use?

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

Brands Percentage

Surf 27

Rin 35

Tide 22

Others 16

In the survey that the researchers 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 this brand (EXCEPT SURF, RIN, and TIDE) which captures 16% of the market share.

his data can be graphically explained with the help of the following bar graph:
demand of detergents

35 30 25 percentage 20 15 10 5 0 brands surf rin tide others

8. Which pack you prefer to use? In order to determine the income pattern of the consumers, it was necessary for the research is 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

Sachet 23

Medium pack 27

Family pack 30

In the survey that the research is conducted, He 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, 23% 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:
demand of detergent packs

45 40 35 30 25 percentage 20 15 10 5 0

sachet medium pack family pack

packs preferred by customers

9. Which shampoo you prefer to use? The reaction of people towards various SHAMPOO brands can be tabulated in the following manner:

Brands Percentage

Clinic plus 33

Sunsilk 25

Head & shoulders 28

Others 14

In the survey, that the research is 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 this brand (EXCEPT CLINIC PLUS, SUNSILK, and 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 percentage 20 15 10 5 0 brands clinic plus sunsilk head & shoulders others

10. Which pack you prefer to use?

In order to determine the income pattern of the consumers, it was necessary for the research is 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 Percentage

Sachet 23

Small pack 32

Medium pack 28

Family pack 17

In the survey that the researchers conducted, He 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:
demand of shampoo packs

35 30 25 percentage 20 15 10 5 0 packs preferred by customers sachet small pack medium pack large pack

11. Which biscuits you prefer to use?

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

Brands Percentage

Marie gold 22

Good Day 40

Parle G 21

Others 17

In the survey, that the research is conducted, it can easily be concluded that GOOD DAY, the product of BRITANNIA holds a major market share of 40%. This is followed by MARIE GOLD, another product of BRITANNIA which holds 22% of the market share. After that, PARLE- G, the product of PARLE, holds 21% of the market share. This is followed by others 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:

demand of biscuits

40 35 30 25 percentage 20 15 10 5 0 brands marie gold good day parle G others

12. Which hair oil you prefer to use?

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

Brands Percentage

Parachute 37

Dabur Amla 29

Dabur Vatika 19

Others 15

In the survey, that the research is 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, and DABUR VATIKA) captures 15% of the market share .

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

demand of hair oil

40 35 30 25 percentage 20 15 10 5 0 brands parachute dabur amla dabur vatika others

13. Which pack you prefer to use?

In order to determine the income pattern of the consumers, it was necessary for the research is 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 packs Percentage

Small pack 38

Medium pack 28

Large pack 34

In the survey that the research is conducted, He 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, 28% consumers demand medium packs. After that, 38% consumers demand small pack. 34% consumers demand large packs.

This data can be graphically explained with the help of the following bar graph:
demand of packs of hair oil

45 40 35 30 25 percentage 20 15 10 5 0

small pack medium pack large pack

packs preferred by customers

14. Which cream you prefer to use?

The reaction of people towards various CREAM brands can be tabulated in the following manner: Ponds 28

Brands Percentage

Fair & lovely 32

Ayur 12

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 12% of the total market share.

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

demand of creams

35 30 25 percentage 20 15 10 5 0 brands ponds fair & lovely ayur others

15. Which coffee you prefer to use?

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

Brands Percentage

Bru 26

Nestle 32

Nescafe 32

Others 10

In the survey, that the research is 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:

demand of coffee

35 30 25 percenatge 20 15 10 5 0 brands bru nestle nescafe others

CHAPTER-5

FINDING & CONCLUSION

In shop the product of HUL was highly in demand. LUX, the product of HUL covers 36% of the market share. The other brand (EXCEPT LUX, DETTOL, and LIFEBUOY) covers 22% of the market share. In the market various shop packs are available, but . 56% consumers demand single pack. 22% consumers demand family packs i.e. 3 in 1 pack. The product of TATA has a market share of 32%, BROOKE BOND, with a market share of 28%, TAJ MAHAL with a market share of 22% & the product of HUL which holds18% of the market share. In toothpaste the product of COLGATE PALMOLIVE is the market leader, which covers 35% of the total market, PEPSODENT covers 27% of the market share, CLOSE UP, the product of HUL is demanded by the customers, which covers 22% of the market share & the other covers the16% of the market share. In detergent RIN, the product of HUL captures 35% of the total market share. SURF, the product of HUL which has a market share of 27%, TIDE, the product

of PROCTER & GAMBLE which has a market share of 27% & (EXCEPT SURF, RIN, and TIDE) which captures 16% of the market share. In shampoo CLINIC PLUS, the product of HUL, captures the major portion of the market with a market share of 33%, HEAD & SHOULDERS, the product of PROCTER & GAMBLE which holds 28% of the market share, SUNSILK, the product of HUL which holds 25% of the market share & (EXCEPT CLINIC PLUS, SUNSILK, and HEAD & SHOULDERS) with a market share of 14%. In biscuits GOOD DAY, the product of BRITANNIA holds a major market share of 40%., MARIE GOLD, another product of BRITANNIA which holds 22% of the market share. After that, PARLE- G, the product of PARLE, holds 21% of the market share & others brands (EXCEPT MARIE GOLD, GOOD DAY, PARLEG) which hold a market share of 17%.

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. They consider the fact that rural consumers do not have that much money to be spent on these products. 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 rural 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.

CHAPTER-6

SUGGESTIONS & RECOMMENDATION

The research is 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 2As has also become an important task for all the organizations.

(*2A= Availability, Affordability, Acceptability, Awareness)

CHAPTER-7

LIMITATIONS
Every project has its own limitations. The purpose of mentioning is to help readers form a more accurate interpretation of the results. Present study is subject to the following limitations which would be taken into consideration.

1. Due to time constraints, the size of the sample was restricted. It may not be possible to
generalize the results on the basis of such small sample size

2. The feedback of the customer may be true or may not be 3. .The study is based on assumption basis. 4. Sample size for this research is only 100 customers of Haldwani, Kathgodam & Lalkuon
reason.

BIBILOGRAPHY (References)

Kearney, A T, CII
5-8.

Report, (2006) pg. no.

Purba basu, research on living style of rural consumers, (2007), Tognatta Pradeep, economic growth on agriculture sector, Aithal K Rajesh, importance & growth of rural markets, 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.ukgov.nic.in/ukinfo/census01/cen01-1.htm Local Development Authority http://www.naukrihub.com/india/fmcg/overview/

(2007), pg no. 6-10.

(2007), pg no. 8-12.

ANNEXURE Questionnaire
Name:.. Occupation:.. Address:... Phone no: Monthly salary:1. less than 10,000 2. 10,000 25,000 3. 25,000 50,000 4. More than 50,000 .. 1. Which soap you prefers to use? a. Lux b. Dettol c. Lifebuoy d. Others 2. Which pack you prefers to use? a. Single b. Family pack ( 3 in 1) 3. Which tea you prefer to use? a. Tata tea b. Brooke bond c. Taj mahel d. others 4. Which pack you prefer to use? a. Sachet b. Medium pack c. large pack

5. Which tooth paste you prefer to use ? a. Pepsodent b. Colgate c. Close up d. Others 6. Which pack you prefer to use? a. Small pack b. Medium pack c. Family pack 7. Which detergent you prefer to use? a. Surf b. Rin c. Tide d. Others 8. Which pack you prefer to use? a. Sachet b. Medium pack c. large pack 9. Which shampoo you prefer to use? a. Clinic plus b. Sunsilk c. Head & shoulders d. Others 10. Which pack you prefer to use? a. Sachet b. Small pack c. Medium pack d. large pack 11. Which biscuits you prefer to use? a. Marie gold b. good day c. Parle - G d. Others 12. Which hair oil you prefer to use? a. Parachute b. Dabur amla c. Bajaj almond d. Others

13. Which pack you prefer to use? a. Small pack b. medium pack c. large pack 14. Which ice-cream you prefer to use? a. Ponds b. Fair & lovely c. Ayur d. Others 15. Which coffee you prefer to use? a. Bru b. Nestle c. Nescafe d. Others