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A PROJECT REPORT

ON
CUSTOMER SATISFACTION IN FMCG INDUSTRY

BACHELOR OF BUSINESS ADMINISTRATION
(BATCH: 2011-14)

SUBMI TTED TO, SUBMI TTED BY,
Mr. CHANDRA SHEKHAR SINGH SUBHASH CHANDRA VISHWAKARMA
Lecturer B.B.A 6
th
Semester
SMS Varanasi Roll no. --114749






DECLARATION

I Subhash Chandra Vishwakarma, a student of BBA 6
th

Semester of school of management Sciences
VARANASI hereby declare that all the information is
correct in accordance with the sample size. All the
statistical diagrams are derived from the information

I also declare that no part of this project has been
duplicated from another source, the information included
in the project has been researched and project written
by me & the information collected or presented in the
report is correct to the best of my knowledge & belief.

(Subhash Chandra Vishwakarma)
BBA- VI SEMESTER
ROLL NO- 114749







ACKNOWLEDGEMENT

Firstly, I would like to express my thanks to Prof. P. N. Jha (Director,
SMS VARANASI) and Mr. Atish Khadse (coordinator BBA
Programme) who gave me an opportunity to work on this project.

This Report is an outcome of the sincere support and guidance of my
mentor Mr. Chandra Shekhar Singh (Lecturer, SMS Varanasi) who
constantly encouraged and helped me to complete this report
successfully.
I am also grateful to my parents without whose guidance, & support this
survey couldnt have been carried out.Last but not the least, I would offer
my special thanks to all those people who have spared their precious
time in filling


(Subhash Chandra Vishwakarma)
BBA- VI SEMESTER
ROLL NO- 114749







1. INTRODUCTION
1.1 OBJECTIVES
1.2 NEED AND PURPOSE OF THE STUDY
1.3 SCOPE OF THE STUDY
1.4 LIMITATIONS
2. RESEARCH METHODOLOGY
3. DATA ANALYSIS
4. FINDINGS
5. RECOMMENDATIONS
6. CONCLUSION
7. QUESTIONNAIRE (ENCLOSED)











Introduction OF FMCG industry
Products which have a quick turnover, and
relatively low cost are known as Fast
Moving Consumer Goods (FMCG). FMCG
products are those that get replaced within
a year. Examples of FMCG generally include
a wide range of frequently purchased
consumer products such as toiletries, soap,
cosmetics, tooth cleaning products, shaving
products and detergents, as well
as other non-durables such as glassware,
bulbs, batteries, paper products, and plastic
goods. FMCG may also include
pharmaceuticals,consumer
electronics,packaged food products, soft
drinks, tissue paper, and chocolate bars.
Indias FMCG sector is the fourth largest
sector in the economy and creates
employment for more than three million
people in downstream activities. Its
principal constituents are Household Care,
Personal Care and Food & Beverages. The
total FMCG market is in excess of Rs. 85,000
Crores. It is currently growing at double
digit growth rate and is expected to
maintain a high growth rate. FMCG Industry
is characterized by a well established
distribution network, low penetration
levels, low operating cost, lower per capita
consumption and intense competition
between the organized and unorganized
segments.

Customer satisfaction survey has been
conducted on Fast Moving Consumer Goods
(FMCG) industry; considering two significant
product categories in that industry; namely,
oral care and personal wash (soaps)
segments. Such a survey is very important as
customer satisfaction can impact every aspect
of the business from earnings to stock profits.
The survey was conducted to encourage
clients and customers to give vital feedback
on issues that can affect customer retention,
including:
Overall satisfaction
Product-specific satisfaction
Brand perception
Pricing
Timeliness of delivery
Customer service satisfaction
Returns and exchange process satisfaction
Interest in new products and services
It would help the companies involved in
FMCG industry to optimize the relationship
with their clients/ customers.
The objectives of this survey are:
1. Measure customer satisfaction levels
2. Improve customer retention
3. Gauge interest in new products and
service offerings
4. Pinpoint areas for process
improvement
5. Get actionable feedback at an affordable
price.










NEED AND PURPOSE OF THE STUDY:
The purpose of the study is to measure customer
perceptions of how well the FMCG industry as a whole
delivers on the critical success factors and dimensions
of the business. These usually include factors like
service promptness, staff responsiveness, and
understanding of the customer's problem. Customer
loyalty and satisfaction levels can be determined by
analyzing the data gathered from our survey questions.
discover new product and service development
ideas;
determine what makes customers loyal;
Understand customer issues and relationships of
industry with the consumers.
This study on customer satisfaction in FMCG industry
can assist decision-makers of FMCG companies in
developing strategies to achieve the all-important goal
of gaining and retaining customers. Results can play a
key role in identifying areas of the business that
require corrective action and improvement. It also
identifies areas that can be leveraged to achieve
business growth and expansion.
1. Importance for Small Business: Small and new
businesses can gain repeat customers.
2. Importance for Medium to Large Businesses: Larger
businesses can monitor customer satisfaction levels.
Larger businesses have levels of managers and
executives who usually don't have direct, one-on-one
contact with customers. Survey provides data and
feedback to monitor customer satisfaction levels and
assess employee performance in fulfilling management
objectives and goals. Survey targets specific customers
by demographics, by geography, marketplace needs
and more.
3. Importance to Customers: Results can provide
insights to increase business--in good and bad times.
Most customers actually desire a long-term
relationship with a brand, product or service provider.
Customer satisfaction survey provides a platform for
them to do so. Their responses, whether good or bad,
provide a wealth of information and feedback to utilize
in developing, retooling and improving the customer
experience with brands, products and services.







Risks of Not Conducting Surveys:
Some business decision-makers hold the opinion that
surveys only attract disgruntled customers. That
attitude could prove risky. It opts to rely on gut and
intuition without actual, quantitative and qualitative
information directly from customers. The result could
mean unrealized growth, missed opportunities and loss
of customers to competitors.








SCOPE OF THE STUDY:
It would help in understanding the extent of
satisfaction of consumers with the FMCG industry and
its multitude of segments. It can build a foundation on
which customer relationships can be built upon. The
study would be covering mostly the area of southern
India and customer satisfaction and loyalty of south
Indians over FMCG products. The study would concern
the opinions of customers over a minimum period of 1
month.





LIMITATIONS OF THE STUDY
Since the FMCG industry is a big industry harboring
numerous segments and thousands of products, it is
not possible to conduct survey on the whole FMCG
industry within a limited period of time. 2-3 product
categories may be taken. Limited time and lack of
awareness of other efficient data gathering techniques
and tools for analysis have limited the accuracy of our
findings in this survey.






RESEARCH METHODOLOGY
Research have been carried out by collecting data
directly, i.e; from the primary sources of data
because data collected in this manner is unique and
original. While collecting the primary data, we have
used the questionnaire method which is a popular
means of collecting data. We have used the
questionnaire in its own right as well as a basis for
interviewing and telephone survey. This method
was adopted as it was relatively cheaper, covers a
wider geographical area and respondent can
consider his/her responses before answering.
The questionnaire contains 17questions; Out of
which first 6 conveys personal information & rest
are regarding consumers opinion on FMCG industry.
It has a combination of both open-end and close-end
questions. Two are open-end questions & 9 are
closed- end questions. Except the final
2(unstructured), rest of the questions are structured
questions. Attitude questions have also been
employed. Semantic differential scale and likeart
scales have been used in the questionnaire to gauge
the customer response on a scale of 1-10 and 1-5.
Probability method of sampling has been used.
Numbers of the collected samples are 50.We have
considered the oral care category& personal wash
(soap) category while studying the FMCG industry.
For this purpose we have collected 25 samples from
oral care & 25 from personal wash (soaps) category.
Samples have been collected from diverse areas
around South India (Andhra Pradesh & Kerala) &
from different age groups & from housewife, daily
workers, retailers, professional workers, retired
people, students & so on.



Data analysis
The data is collected from a small sample of
population. We collected the data from 40 people
from different areas. Based on these data we could
able to find the following things. The data below
shows the findings of personal wash soaps.













Customer satisfactory survey on personal wash
(soaps) products


1. Age group of the sample
Age group No.
18-24 10
25-34 17
35-44 2
45-54 6
55-64 4
65 and above 1





2. Level of Education
Level of Education Number
Higher Secondary Or Below 7
Senior Secondary 8
Graduation 11
Post Graduation 8
Professional Course 6







3. Employment status

Employment Status Number
Govt Service 10
Private Service 13
Business 4
Self Employed 3
Retired 2
Student 8








4. Household Income Per Month
Household Income Per Month No.
Below 5000 5
5000-10,000 18
10,000-50,000 14
50,000-1,00,000 2
1,00,000 and above 1







5. Usage of product (soap)
Brand Percentage
Lux 37.5
Lifeboy 15
Dove 15
Pears 17.5
Medimix 5
Santoor 2.5
Other 7.5







6. Source by Which they Came to Know about the Product

How Came to Know About the Product No.
Friends/Relative 4
Television 26
News Paper 5
Magazine 2
Internet/ Websites 3
Other 0







7. Satisfactory Level of the Product







satisfactory
level
Very
Satisfied Satisfied Neutral Dissatisfied
Very
Dissatisfied
Lux 14 1 0 0 0
Lifeboy 5 1 0 0 0
Dove 6 0 0 0 0
Pears 7 0 0 0 0
Medimix 1 1 0 0 0
Santoor 1 0 0 0 0
Other 2 0 1 0 0
8. Order of Importance when Buying Soap

Order of Importance When Buying Soap No.
Quality 21
Price 7
Quantity 5
Brand Name 3
Familiarity 4








Customer Satisfaction Survey on Oral
(tooth paste) Care.

1. Age of Respondents

Age of respondents No.
18-24 15
25-34 7
35-44 8
45-54 9
55-64 1






2. Level of Education

Level of education of respondents No.
Higher secondary or below 2
Senior secondary 5
Graduation 16
Post graduation 9
Professional course 8







3. Employment Status

Employment status No.
Govt service 7
Private service 12
Business 4
Self empioyed 3
Retired 1
Student 13











4. Household Income Per Month

Household income per month No.
Below 5000 5
5000-10000 21
10000-50000 10
50000-100000 4
100000 and above 0









5. Source by Which they Came to Know about the Product

How did they came to know No
Friends/relative 6
Television 29
Newspaper 3
Magazine 1
Internet/Website 1
Other 0










6. Satisfaction Level

satisfaction
level
Very
Satisfied Satisfied Neutral
Dissatisfie
d
Very
Dissatisfied
Colgate 18 0 0 0 0
Pepsodent 5 1 0 0 0
Close-up 11 0 1 0 0
Dabur 1 0 1 0 0
Babool 0 1 0 0 0
Other 0 0 1 0 0







7. Product Users (tooth paste)

Users No.
Colgate 18
Pepsodent 6
Close-up 12
Dabur 2
Babool 1
Other 1





Findings:
From the above Survey we found that most of the
customers are quality oriented. Their first importance
in any product is quality, after that price and third
importance is quantity, fourth one is brand name, and
last one is familiarity. It means customers are more
aware of about quality not to the brand name and they
are also price conscious.
The main source of awareness is television. Most of
the people are getting familiar to the product through
television.
We find that more than 37% peoples are using LUX,
15%- Lifebuoy, and Dov-15%, Madimix-5%, Santoor-
2.5, and other brand-7.5%. It means LUX is very
famous brand in middle (10000-50000 per month) and
lower middle class (5000-10000 per month) families.
We found that overall satisfaction level of Pears and
Dove is very high, 100% people are very satisfied. And
for Lux 93% people are very satisfied, and 7% satisfied.
And for Lifebuoy 83% people are very satisfied, 17%
are just satisfied.
We found that most of the users of Colgate are from
middle and lower middle class society. Satisfaction
level of Colgate is also very high.







Recommendations
We find that people are more conscious about
product quality and price so marketer should
maintain the quality and fix the reasonable price.
They are not much aware about brand name so
marketers should dont waste the money on brand
promotion and advertising, as we found that more
than 70% people know about product b
Television so they invest in telemarketing.
So many consumers have commented on packaging,
variety and taste of Colgate so they should work on
it. Some peoples are not satisfied with color and
flavor of Pepsodent paste,



CONCLUSION
It has been an enlightening first hand experience to
conduct a consumer satisfaction survey using
questionnaires and the conclusion we have drawn is
based on direct responses from the respondents.
After collecting this sample survey we found that
most of the people are more aware about quality of
product this is a very good symbol for healthy
competition in market. After that they look on price
of the product, it means if product quality is good
they ready to pay more money but we found that
they are not much worry about brand name, thats
bad for marketers who didnt made brand loyalty in
customers.
We found that most of the people know about
product by Television. It means in rural area where
electricity is not available people are not much
aware about these products.