EFFECT OF ADVERTISEMENT ON CONSUMERS

Advertising is the means of informing as well as influencing the general public to buy
products or services through visual or oral messages. A Product or service is advertised to
create awareness in the minds of potential buyers. Some of the commonly used media for
advertising are T.V., radio, websites, newspapers, magazines, bill-boards, hoardings etc. As
a result of economic liberalization and the changing social trends advertising industry has
shown rapid growth in the last decade.
Advertising is one of the aspects of mass communication. Advertising is actually brandbuilding through effective communication and is essentially a service industry. It helps to
forms the basis of marketing. Advertising plays a significant role in todays highly
competitive world. A career in advertisement is quite glamorous and at the same time
challenging with more and more agencies opening up every day. Whether its brands,
companies, personalities or even voluntary or religious organizations, all of them use some
form of advertising in order to be able to communicate with the target audience.

The salary structure in advertising is quite high and if you have the knack for it one can
reach the top. It is an ideal profession for a creative individual who can handle workpressure. Today, new areas are emerging within advertising like event management, image
management, internet marketing etc. Event management wherein events are marketed,
Image management wherein a particular profile of an individual or an organization is
projected. Internet marketing has also brought about a lot of changes in advertisings
Internet means that one is catering to a select group of audience rather than a mass
audience .Today Celebrity Endorsement has attracted immense debate on whether it really
contributes to the brand building process or whether it is just another lazy tool to make the
brand more visible in the minds of the consumers.

Although it has been observed that the presence of a well-know personality helps in solving
the problem of over-communication that is becoming more prominent these days, there are
few undesirable impacts of this practice on the brand. The issue of matching the values of
the celebrity with the brand values is also very important, i.e. getting the right celebrity to
endorse the right brand.
Consumers perceive the brand as having superior quality because it has been endorsed by a
credible source. This makes endorsement as one of the indictors of quality for any brand.
Corporate credibility along with endorser credibility plays a significant role in the attitude
of the consumer towards the brand and the advertisement respectively

On the other hand, the over popularity of the celebrity sometimes overshadows the brand.
The goods used in day to day purposes of consumers which are purchased conveniently are
known as convenient goods. Advertising is one of the aspects of mass communication.
Advertising is actually brand-building through effective communication and is essentially a
service industry. It helps to forms the basis of marketing. Advertising plays a significant
role in todays highly competitive world. A career in advertisement is quite glamorous and
at the same time challenging with more and more agencies opening up every day. Whether
its brands, companies, personalities or even voluntary or religious organizations, all of
them use some form of advertising in order to be able to communicate with the target
audience. The salary structure in advertising is quite high and if you have the knack for it
one can reach the top. It is an ideal profession for a creative individual who can handle
work-pressure. Today, new areas are emerging within advertising like event management,
image management, internet marketing etc. Event management where in events are
marketed, Image management where in a particular profile of an individual or an
organization is projected.

Internet marketing has also brought about a lot of changes in advertising as Internet means
that one is catering to a select group of audience rather than a mass audience today.
Although it has been observed that the presence of a well-known personality helps in
solving the problem of over-communication that is becoming more prominent these days,
there are few undesirable impacts of this practice on the brand.
Consumers perceive the brand as having superior quality because it has been endorsed by a
credible source. This makes endorsement as one of the indictors of quality for any brand.
Corporate credibility along with endorser credibility plays a significant role in the attitude
of the consumer towards the brand and the advertisement respectively. On the other hand,
the over popularity of the celebrity sometimesAdvertising is a form of communication used
to help sell products and services.
Typically it communicates a message including the name of the product or service and
how that product or service could potentially benefit the consumer. However, Advertising
does typically attempt to persuade potential customers to purchase or to consume more of
particular brand of product or service.
Modern advertising developed with. the rise of mass production in the late 19th and early
20th centuries. The crescendo of celebrities endorsing brands has been steadily increasing
over the past 20 years or so. Marketers overtly acknowledge the power of celebrity in
influencing buyers purchase decision. They have firm believe that likeability or a favorable
attitude towards a brand is created by these of a celebrity.
The core of rupees spent per year on celebrity endorsement contracts show that celebrities
like Amitabh Bachchan, Sharukh khan and Sachin Tendulkar play an important role for the
advertising industry. It is an established fact that celebrity endorsement can bestow unique
features or special attributes upon a product that it may have lacked otherwise. My thesis
deals with the impact advertisement creates on a customers preference of a brand. In other
words, how does an ad in a television, radio, newspaper ,hoardings and banners lure a
customer to go and purchase the product.

Does he purchase because of the benefits or because he liked the advertisement which has
created a positive impact on him. Advertising is the means of informing as well as
influencing the general public to buy products or services through visual or oral messages.
A product or service is advertised to create awareness in the minds of potential buyers.
Some of the commonly used media for advertising are T.V., radio, websites, newspapers,
magazines, bill-boards, hoardings etc .As a result of economic liberalization and the
changing social trends advertising industry has shown rapid growth in the last decade.
Advertising is one of the aspects of mass communication. Advertising is actually brandbuilding through effective communication and is essentially a service industry. It helps to
forms the basis of marketing. Advertising plays a significant role in todays highly
competitive world. A career in advertisement is quite glamorous and at the same time
challenging with more and more agencies opening up every day.

Whether its brands, companies, personalities or even voluntary or religious organizations,

all of them use some form of advertising in order to be able to communicate with the target
audience. The salary structure in advertising is quite high and if you have the knack for it
one can reach the top. It is an ideal profession for a creative individual who can handle
work-pressure. Today, new areas are emerging within advertising like event management,
image management, internet marketing etc.
Event management wherein events are marketed, Image management wherein a particular
profile of an individual or an organization is projected. Internet marketing has also brought
about a lot of changes in advertising as Internet means that one is catering to a select group
of audience rather than a mass audience .
Today Celebrity Endorsement has attracted immense debate on whether it really contributes
to the brand building process or whether it is just another lazy tool to make the brand more
visible in the minds of the consumers. Although it has been observed that the presence of a
well-known personality helps in solving the problem of over-communication that is
becoming more prominent these days, there are few undesirable impacts of this practice on
the brand.

The issue of matching the values of the celebrity with the brand values is also very
important, i.e. getting the right celebrity to endorse the right brand. Consumers perceive the
brand as having superior quality because it has been endorsed by a credible source. This
makes endorsement as one of the indictors of quality for any brand.

CONVENIENT GOODS (FMCG)

A consumer item that is widely-available purchased frequently and with minimal effort. Because
a convenience good can be found readily, it does not require the consumer to go through an
intensive decision-making process. The goods used in day to day purposes of consumers which
are purchased conveniently are known as convenient goods Examples of convenience goods
include newspapers and candy.
Convenience goods are different than specialty goods, such as a car, which are more expensive
and often carry a greater opportunity cost to the consumer. Consumer goods are goods or
commodities which we use in our daily lives. Consumer goods are purchased from our local
markets. It is comprised of three subcategories on the basis of consumer buying habits:
convenience goods, shopping goods, and specialty goods.

Consumer goods can be changed on the basis of stability. Durable goods are products which we
have been using for a long or constant time, such as garden tools, furniture etc. The goods which
become outdated and cannot be used for an extensive period are called nondurable goods, such
as, foods, drinks etc. Convenience goods are items people want readily available to them for
simple purchase, in other words the goods are available upon the needs of the people or
consumers. Most nondurable goods are low priced and are mostly purchased in small quantities.
These goods can be divided into two subgroups, staple items and impulse items.
Staple convenience goods are items that people wish to buy before they come to a store. They
may make a list of it such as, milk, bread and toilet paper. Impulse items are other convenience
goods that people buy without any prior planning; usually people buy these goods when they
come to buy something else. Impulse items are not pre-meditated and may range from a variety
products such as candy bars, newspapers, magazines or soft drinks.
Shopping goods are bought only when the consumer compares the products from more than one
place or looks at more than one choice of goods before making a buying decision. These goods
are durable and usually expensive than convenience goods. Therefore, people dont buy it
frequently. Before making the buying decision, consumers typically look at the price, style and
color. Cell phones, cameras, computers, and televisions are examples of shopping goods.
People need and require shopping goods in their daily lives. Most often the stores are located in
active shopping areas.

ADVERTISING

The word advertising originates from a Latin word advertise, which means to turn to. The
dictionary meaning of the term is to give public notice or to announce publicly
.Advertising may be Sales promotion is the dissemination of information through a wide
variety of activities other than personal selling, advertising and publicity. Which stimulate
consumer purchasing and dealer effectiveness.
A personal selling is the between audience and employees of these sponsoring organization.
The source of information is the sponsoring organization. Publicity Advertising is the
dissemination of information by non-personal means through paid media where the source is
the sponsoring organization. Sales promotion, and defined as the process of buying sponsoridentified media space or time in order to promote a product or an idea.
The American Marketing Association, Chicago, has defined advertisings any form of nonpersonal presentation or promotion of ideas, goods or services, by an identified
sponsor.ORIGIN AND DEVELOPMENT OF ADVERTISING It has been wrongly assumed
that the advertising function is of recent origin. Evidences suggest that the Romans practiced
advertising; but the earliest indication of its use in this country dates back to the middle Ages,
when the use of the surname indicated a mans occupation.
The next stage in the evolution of advertising was the use of signs as a visual expression of
the tradesmans function and a means of locating the source of goods. This method is still in
common use. The seller in primitive times relied upon his loud voice to attract attention and
inform consumers of the availability of his services. If there were many competitors, he
relied upon his own personal magnetism to attract attention to his merchandise.

Often it became necessary for him to resort to persuasion top in point the advantages of this
products. Thus, the seller was doing the complete promotion job himself. Development of
retail stores, made the traders to be more concerned about attracting business. Informing
customers of the availability of supplies was highly important.
Some types of outside promotion were necessary. Signs on stores and in prominent places
around the city and notices in printed matters were sometimes used When customers were
finally attracted to the store and satisfied with the service at least once, they were still
subjected to competitive influences; therefore, the merchants signs and advertisements
reminded customers of the continuing availability of his services.

Sometimes traders would talk to present and former customers in the streets, or join social
organizations in order to have continuing contacts with present and potential customers. As

the markets grew larger and the number of customers increased, the importance of attracting
them also grew. Increasing reliance was placed on advertising methods of informing about
the availability of the products.
These advertising methods were more economical in reaching large numbers of consumers.
While these advertising methods were useful for informing and reminding, they could not do
the whole promotional job. They were used only to reach each consumer personally.
The merchant still used personal persuasion once the customers were attracted to his store.
The invention of hand press increased the potentialities of advertising. By Shakespeares
times, posters had made heir appearance, and assumed the function of fostering demand for
existing products.

Another important event was the emergence of the pamphlet as an advertising medium. The
early examples of these pamphlets disclose their sponsorship by companies want to generate
goodwill for their activities. The low cost of posters and hand bills encouraged a number of
publishers to experiment with other methods. Media of Advertising Print Media Electronic
Media other Media, Newspaper, Radio, Hoardings, Periodicals, .Television, Poster print
Media. Print media is a very commonly used medium of advertising by businessman.
It includes advertising through news paper, magazines, journals, etc. and is also called press
advertising. You must have read Newspapers. In our country newspapers are published in
English, Sinhala and Tamil. These are the sources of news, opinions and current events. In
addition, Newspapers are also a very common medium of advertising.
The advertiser communicates his message through newspaper which reaches to millions of
people. Newspaper normally have wide circulation and a single advertisement in the
newspaper can quickly reach to a large number of people
. The cost of advertising is relatively low because of wide publication. Generally newspapers
are published daily. Thus, the same advertisement can be repeated frequently and remind
reader every day The matter of advertisement can be given to newspaper at very short notice.
Are even last minute change in the content is also possible this makes advertising quite
flexible .Illiterate persons can not read and thus, newspaper advertising does not benefit
them. Periodicals are publications which come out regularly but not on a daily basis.

These may be published on a weekly, fortnightly, monthly, bimonthly, quarterly or even

yearly basis. For example you must have come across magazines and journals like India
Today, Famine, etc. All these periodicals have a large number of readers and thus,
advertisements published in them reach a number of people. Periodicals have a selected
readership and so advertisers can know about their target customers and accordingly selective
advertisements are given.

All of us are aware about a radio and must have heard advertisement for various products in.
it. In radio there are short breaks during transmission of any programmed which is filled by
advertisements of products and services. There are also popular programmers sponsored by
advertisers.
It is more effective as people hear it on a regular basis. It is also useful to illiterates, who can
not read and write. There are places where newspapers reading may not possible, but you can
hear radio. For example, you can hear radio while traveling on road or working at home; but
you can not read newspaper.
Similarly, while driving you can hear a radio but cannot read a news paper. A regular listener
may remember what he has heard. But, occasional listeners tend to forget what they have
heard in Radio. The message that any advertisement wants to communicate may not be
proper as there is no chance to hear it again immediately. There maybe some other
disturbances that distort communication. In comparison to Television, Radio is less effective
as it lacks visual impact.
Television Advertising With rapid growth of information technology and electronic media,
television has topped the list among the media of advertising. TV has the most effective
impact as it appeals to both eye and the ear. It is most effective as it has an audio-visual
impact. With catchy slogans, song and dance sequences, famous personalities exhibiting
products, TV advertising has a lasting impact.
With varieties of channels and programmes advertisers have a lot of choice to select the
channel and time to advertise. With regional channels coming up any person even illiterates
can watch the advertisements and understood it by seeing and hearing. TV advertisements are
usually expensive to prepare as well as to telecast. With almost every manufacturer trying to
communicate their message through TV advertising the impact among the viewers is also
reducing.
Now-a-days people are switching on channels whenever there is a commercial break.
Internet It is the latest method of communication and gathering information. If you have a
computer and with an access to internet you can have information from all over the world
within a fraction of second.
Through internet you can go to the website of any manufacturer or service provider and
gather information. Sometimes when you do not have website addresses you take help of
search engines or portals. Advantages Information from all over the world is made available
at the door steps .User can see the advertisement at their own time and as per their
requirement.

It is not accessible without a computer. It is not very suitable for general public.
It is not suitable for illiterate and those having no knowledge about the operation of
Internet. Other Media All the media of advertising discussed above are mostly used by
consumers while they are at home or inside any room, except radio and news papers or
magazines to some extent.
Moreover in all these media, the consumer has also to spend some money to access the
advertisement. However, there are other media available, where the consumer has to
spend nothing and he can see such advertisements while moving outside. Some of such
advertising are hoardings, posters, vehicular displays, gift items, etc. Hoardings While
moving on roads you must have seen large hoardings placed on iron frames or roof tops
or walls.
These are normally boards on which advertisements are painted or electronically
designed so that they are visible during day or night. The advertisers have to pay an
amount to the owners of the space, where the hoardings are placed. Posters Poster are
printed and posted on walls, buildings, bridges etc to attract the attention of customers.
Posters of films which are screened on cinema halls are a common sight in our country.
Vehicular displays.
You must have seen advertisements on the public transport like buses, trains, etc. Unlike
hoardings these vehicles give mobility to advertisements and cover a large number of
people. Advertisement is a mass communicating of information intended to persuade
buyers to by products with a view to maximizing companys profits .

INDUSTRY PROFILE

ADVERTISING INDUSTRY

Advertising Industry Overview Advertising and Marketing Communications Agencies

Introduction: Advertising is a form of communication that typically attempts to persuade
potential customers to purchase or to consume more of a particular brand of product or service
than competing brands or services or if the advertising in not on behalf of a brand but for
instance a public service to change their behavior.
Modern advertising developed with the rise of mass production in the late 19th and early 20th
centuries and has now developed as an essential part of influencing behavior across a wide
spectrum of interest groups. Many advertisements are designed to generate increased
consumption of those products and services through the creation and reinvention of a brand
image" . For these purposes, advertisements sometimes embed their persuasive message with
factual information.
Every major medium is used to deliver these messages, including television, radio, cinema,
magazines, newspapers, video games, the internet, direct mail, billboards, outdoor posters and
sponsorship (the list is getting longer as new media are developed). Advertising is often placed in
these media by an advertising agency acting on behalf of the client company or other
organization, therefore they are acting as agents.

Organizations that frequently spend large sums of money on advertising that sells what is not,
strictly speaking, a product or service include political parties, government departments, interest
groups, religious organizations, non-profit organizations and charities. However, just like brands
they are competing for the consumers attention if not to consume a product to influence their
behavior. For example
Money spent on advertising has increased dramatically in recent years. In 2007, spending on
advertising has been estimated at over $150 billion (100 bn in the United States and $385
billion worldwide (257 bn). While there might have been a decline in the recessionary years, it
is predicted that spending on advertising will exceed $450 billion (300 bn) after 2010. While
advertising can be seen as necessary for economic growth, it is not without social costs.
Unsolicited commercial email and direct mail have become prevalent
Marketers use various techniques in order to make promotions for products so that they look
appealing and attractive to the customers. These people target the various emotions and values of
the consumers and the people are pulled into buying the products. Some marketing techniques
are so successful that they attract even those people who really do not need the product in the
first place. Because of the power that advertising have on human mind, makes us to buy
unnecessary things.
Firstly, an advertisement manipulates choices and spending habits. A lot of people have difficulty
accepting the idea that ads are manipulative because we want to believe we're in complete
control of our choices. For example, some people, especially elder people, often are not able to
recognize that ads just offer them products and when the advertisement says that their eyeglasses
are the best according to Department of Health, then these older people do not see any reason
why not to buy new glasses. Another category are children, who are influenced by ads mostly
and are also mostly vulnerable because after they saw advertising an interesting toy, they begin
to persuade their parents to buy it, they are mostly willing to use a cry to achieve their will.
Therefore, most companies created special ads aimed only at children.
Secondly, Advertising is the art of convincing people to spend money on which they really dont
need. I remember that once I was watching television with my sister and we both saw an
advertisement for some new lamp with perfect lighting for the eyes and were giving out promises
that it can improve your grade. We were both laughing at the ad because we both thought that it
was a very stupid idea.

Advertising in India has created an incredible awareness among the people in the past decade
growing in to big industry. It has grown along with the press and today it has found its way into

the other two media - Radio and Television.Advertising, which was an American concept
originally, has found its place in a country like India, so much so that the number of commercials
has doubled in the media.Advertising in India grew with the Indian press. In the initial period, to
advertise meant to inform. The early newspapers and magazines announced births, deaths,
arrivals of ships from England, sale of household furniture etc.

In the beginning of the nineteenth century new products, discounts and special services got their
place in advertisements. Thus, gradually advertising started gaining power. It increased with the
growth of trade and commerce.The leading newspapers like The Times of India and the
statesman had their own advertising departments which prepared layouts for advertisements. In
early 20th century the advertising agencies such as Indian Advertising Agency and Calcutta
Advertising Agency were started. During Second World War, press advertising was used
extensively to raise funds for the war.The Indian professionals also learnt how to motivate the
masses through advertising. Between 1922 - 1939 many advertising agencies came up such as
New India Publicity Co., Paradise advertising Agency of Calcutta, and National Advertising
Agency and so on.The Advertising Agencies Association of India (AAAI) was established in
1945, training an authority to represent the interests and problems of advertising profession. At
the time of independence, advertising business was expanding.

It grew technically also with the introduction of multi-color printing, and improved printing
machines. Commercial art also grew as a profession which boosted the advertising business. In
1951, the Indian society of Advertisers was formed and in May 1958, the society of Advertising
Practitioners was formed.During pre-independence era, Indian advertisements were mostly about
clothes, travelling, eating and entertainment places, four-wheelers, tea, gramophones and
tailoring shops for Britishers in India and the princely families.In the post independence period,
the focus of advertisements shifted from luxury goods to consumer goods bought mainly for time
and labor saving purposes. In 1976, first commercial spot appeared on Television and in 1980,
the first advertisement sponsors were allowed.

Advertising in India has urban image, i.e. the urban products are advertised by urban models in
urban living styles. Many factors contributed to the advertising industry's growth and expansion
in India. The sharp increase in the media options in all spheres made it easy to reach the

audience. This offered new advertising opportunities of media planning.Many companies were
keen on encasing the innovations of the media and trying to be the first to catch the fascination
and attention of the target audience and advertising agencies readily offered their skills.With the
policy of liberalization, the business culture improved all around. This led advertising agencies to
raise their creative standards and improvements in functioning of the ad agencies.Moreover,
many specializations came up in advertising. Such as, financial advertising, direct marketing,
social advertising etc. This resulted in the growth in number and size of the in-house
agencies.Mudra Communications was promoted by Reliance Industries, Shristi was set up by
Lohia Machines, Ambience by Garden Silk Mills and Govan Advertising was parented by
Golden Tobacco. Later, these agencies grew in to fully fledge professional agencies, servicing
several outside clients besides the owner company.

CONVENEIENT GOODS (FMCG) INDUSTRY

Fast-moving consumer goods

Fast Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG) are products
that are sold quickly and at relatively low cost. Examples include non-durable goods such as soft
drinks, toiletries, and grocery items.[1][2] Though the absolute profit made on FMCG products is
relatively small, they generally sell in large quantities, so the cumulative profit on such products
can be substantial. Procter & Gamble and Unilever are the two biggest consumer goods company
that operate across the globe.
The term FMCGs refers to those retail goods that are generally replaced or fully used up over a
short period of days, weeks, or months, and within one year. This contrasts with durable goods or
major appliances such as kitchen appliances, which are generally replaced over a period of
several years.
FMCG have a short shelf life, either as a result of high consumer demand or because the product
deteriorates rapidly. Some FMCGs such as meat, fruits and vegetables, dairy products and
baked goods are highly perishable. Other goods such as alcohol, toiletries, pre-packaged foods,
soft drinks and cleaning products have high turnover rates. Biggest FMCG company across the
globe is nike,puma etc

Fast Moving Consumer Goods (FMCG) Industry in India

Overview
Fast Moving Consumer Goods (FMCG) Industry in India is one of the fastest developing sectors
in the Indian economy. At present the FMCG Industry is worth US$ 13.1 billion and it is the 4th
largest in the Indian Economy. These products have very fast turnaround rate, i.e. the time from
production to the revenue from the sell of the product is very less. In the present economic
scenario, time is regarded as money, so the FMCG companies have to be very fast in
manufacturing and supplying these goods.

Fast Moving Consumer Goods (FMCG) Industry in India

Facts

The Fast Moving Consumer Goods (FMCG) Industry in India include segments like cosmetics,
toiletries, glassware, batteries, bulbs, pharmaceuticals, packaged food products, white goods,
house care products, plastic goods, consumer non durables, etc. The FMCG market is highly
concentrated in the urban areas as the rise in the income of the middle-income group is one of the
major factors for the growth of the Indian FMCG market.
The penetration in the rural areas in India is not high as yet and the opportunity of growth in
these areas is huge by means of enhanced penetration in to the rural market and conducting
awareness programs in these areas. The scopes for the growth of the FMCG industry are high as
the per capita consumption of the FMCG products in India is low in comparison to the other
developed countries. The manufacturing of the FMCG goods is concentrated in the western and
southern belt of the country. There are other pockets of FMCG manufacturing hubs.

The fast-moving consumer goods (FMCG) sector is an important contributor to India's GDP. It is
the fourth largest sector of the Indian economy. The FMCG market is estimated to treble from its
current figure in the coming decade. Penetration levels as well as per capita consumption of most
product categories like jams, toothpaste, skin care and hair wash in India are low, indicating the
untapped market potential. The growing Indian population, particularly the middle class and the
rural segments, present an opportunity to makers of branded products to convert consumers to
branded products. The Indian rural market with its vast size and demand base offers a huge
opportunity for investment. Rural India has a large consuming class with 41 per cent of India's
middle-class and 58 per cent of the total disposable income.

Initially the FMCG majors neglect the Indian rural market but in present scenario the main focus
of the companies is to capture the highest share in the Indian rural market as the size of the
market suppose to increase many folds in the coming time and the urban market are showing
very slow growth rates. As the tempo of development is accelerating in rural India, with
increasing purchasing power.As Indian economy is basically rural economy because more than
700 million people living in rural areas in some 5,80,000 villages, about two third of its
workforce is engaged in agriculture and allied activities with a contribution of about of about 29
percent to India's Gross Domestic Product (GDP), India is an Agrarian economy.
Additionally, the Indian rural economy has very less impact of the global economic slowdown
according to the recent study conducted by the government agency RMAI.The research found
that the small town and the rural economies has very less impact of the global slowdown. The 60
per cent of the India's income remain insulated of the global crises.

Moreover the disposable income of the rural India is increasing from consecutive four years due
to the continuous growth of the agriculture industry.The Indian rural fast moving consumer
goods or FMCG market is expected to swell more than ten times to reach the $100 billion mark
by 2025, according to a fresh study by the marketing and advertising research firm, The Nielsen
Company.In more than half of the largest FMCG categories, growth in rural markets is expected
to outpace the urban markets, Some of the largest categories include salty snacks, cream,
biscuits, refined oil, chocolates, noodles, milk foods, soft drinks, and grooming products. Food
categories are currently driving the bulk of this growth in the rural market that now stands at $9
billion, according to the research firm.

On the other hand, there has also been a surge in the demand for products in the premium
segment such as hair color and fabric softener, and other grooming products like deodorants.
"The availability of lower priced packs has improved accessibility...and premium skincare brands
typically associated with urban areas are growing nearly twice as fast in rural, said Prashant
Singh, vice president, Nielsen, India.
Prasun Basu, executive director Nielsen, India, said the rise and stability in rural income, rise in
purchasing power, and evolved consumer preferences, backed by increasing awareness, and
improved availability were the leading drivers of this increase in rural consumption.Rural India
accounts for the 70 per cent of the toilet soap users and 40 % of the two wheelers sales in India
according to the National Council of Applied Research.Penetrating the rural market the
companies need different innovative thinking and new strategic methods to overcome the various
hurdles. Rural India meant reaching 6,27,000 square Km; it meant a distributor needs to travel
100 Km to target 5 shops in 5 different villages.
Thus, rural India has became one of the targets of all the multinationals, advertisers and
corporate. According, to the recent study by NCAER the purchasing power of the people of rural
India is increased due to high prices of the agriculture commodities and higher production of
crops added to the point. Rural marketing has become latest concern and mantra of most
companies like ITC, Hindustan Unilever, JNJ, P&G, Pepsi, Coca Cola all are making strategic
entry in the Indian rural markets.
The Indian FMCG sector has a market size of $ 13.1 billion. Well-established distribution
networks, as well as intense competition between the organized and unorganized segments are
the characteristics of this sector. FMCG in India has a strong and competitive MNC presence
across the entire value chain. It has been predicted that the FMCG market will reach $33.4
billion in 2015 from $11.6 billion in 2003. The middle class and the rural segments of the Indian
population are the most promising market for FMCG, and give brand makers the opportunity to
convert them to branded products. The rural market consists of 57 per cent share of the total
FMCG market in India.

The number of households in rural India have increased from 135 million in year 2002 to 153
million in year 2009 with such a huge potential market the major FMCG giants are keeping their

full concentration on the rural markets. They are trying to build the better distribution network
and dealer channel so that they can explore the markets.Consumer goods are goods or
commodities which we use in our daily lives. Consumer goods are purchased from our local
markets. It is comprised of three subcategories on the basis of consumer buying habits:
convenience
goods,
shopping
goods,
and
specialty
goods.
Consumer goods can be changed on the basis of stability.
Durable goods are products which we have been using for a long or constant time, such as
garden tools, furniture etc. The goods which become outdated and cannot be used for an
extensive period are called nondurable goods, such as, foods, drinks etc Convenience goods are
items people want readily available to them for simple purchase, in other words the goods are
available upon the needs of the people or consumers. Most nondurable goods are low priced and
are mostly purchased in small quantities.
These goods can be divided into two subgroups, staple items and impulse items.Staple
convenience goods are items that people wish to buy before they come to a store. They may
make a list of it such as, milk, bread and toilet paper. Impulse items are other convenience goods
that people buy without any prior planning; usually people buy these goods when they come to
buy something else. Impulse items are not pre-meditated and may range from a variety of
products such as candy bars, newspapers, magazines or soft drinks.
Shopping goods are bought only when the consumer compares the products from more than one
place or looks at more than one choice of goods before making a buying decision. These goods
are durable and usually expensive than convenience goods. Therefore, people dont buy it
frequently. Before making the buying decision, consumers typically look at the price, style and
color. Cell phones, cameras, computers, and televisions are examples of shopping goods.
People need and require shopping goods in their daily lives. Most often the stores are located in
active shopping areas

OBJECTIVES

1. To find the difference in buying habits of consumers after its advertisement.

2.How advertisement is helping retailers in selling their convenient goods.

3.Does most of the advertisements of convenient goods provide the right message to consumers.

4.Are advertisements able to showcase the different consumer requirements.

5.To find the various techniques used in advertising convenient goods.

METHODOLOGY

1.Primary data-Questionnaire methods(sample size kadavanthra).

2.Secondary data-Media,Internet,books.

LIMITATIONS

1.Time constrain.

2.The size of the location selected.