CHAPTER 1 INTRODUCTION

1.1 FAST MOVING CONSUMER GOODS

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. !amples o" FMCG generally include a wide range o" "requently purchased consumer products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as other non#dura$les such as glassware, $ul$s, $atteries, paper products, and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged "ood products, so"t drinks, tissue paper, and chocolate $ars. %u$sets o" FMCGs are Fast Moving Consumer lectronics which include innovative electronic products such as mo$ile phones, MP& players, digital cameras, GP% %ystems and 'aptops. (hese are replaced more "requently than other electronic products. )hite goods in FMCG re"er to household electronic items such as *e"rigerators, (.+s, Music %ystems, etc.

1.1.1 The FMCG Industry

(he ,ndian FMCG sector is the "ourth largest sector in the economy with a total market si-e in e!cess o" .%/ 0&.0 $illion. ,t has a strong M1C presence and is characteri-ed $y a well esta$lished distri$ution network, intense competition $etween the organi-ed and unorgani-ed segments and low operational cost. 2vaila$ility o" key raw materials, cheaper la$or costs and presence across the entire value chain gives ,ndia a competitive advantage. (he FMCG market is set to tre$le "rom .%/ 00.3 $illion in 455& to .%/ &&.6 $illion in 4507. Penetration level as well as per capita consumption in most product categories like 8ams,

1|Page

toothpaste, skin care, hair wash etc in ,ndia is low indicating the untapped market potential. 9urgeoning ,ndian population, particularly the middle class and the rural segments, presents an opportunity to makers o" $randed products to convert consumers to $randed products. Growth is also likely to come "rom consumer :upgrading: in the matured product categories. )ith 455 million people e!pected to shi"t to processed and packaged "ood $y 4505, ,ndia needs around .%/ 4; $illion o" investment in the "ood#processing industry. 2utomatic investment approval (including "oreign technology agreements within speci"ied norms), up to 055 per cent "oreign equity or 055 per cent "or 1*, and <verseas Corporate 9odies (<C9s) investment, is allowed "or most o" the "ood processing sector. FMCG industry, alternatively called as CPG (Consumer packaged goods) industry primarily deals with the production, distri$ution and marketing o" consumer packaged goods. (hese are products that have a quick turnover, and relatively low cost. Consumers generally put less thought into the purchase o" FMCG than they do "or other products. (hough the a$solute pro"it made on FMCG products is relatively small, they generally sell in large num$ers and so the cumulative pro"it on such products can $e large. %ome o" the prime activities o" FMCG industry are selling, marketing, "inancing, purchasing, etc. (he industry also engaged in operations, supply chain, production and general management. FMCG industry provides a wide range o" consuma$les and accordingly the amount o" money circulated against FMCG products is also very high. (he competition among FMCG manu"acturers is also growing and as a result o" this, investment in FMCG industry is also increasing, speci"ically in ,ndia, where FMCG industry is regarded as the "ourth largest sector with total market si-e o" .%/0&.0 $illion. FMCG %ector in ,ndia is estimated to grow 35= $y 4505.

2|Page

FMCG Industry Economy

FMCG Industry Economy

3|Page

that processed "oods, $akery, and dairy are long#term growth categories in $oth rural and ur$an areas.

Common FMCG roducts

%ome common FMCG product categories include "ood and dairy products, glassware, paper products, pharmaceuticals, consumer electronics, packaged "ood products, plastic goods, printing and stationery, household products, photography, drinks etc. and some o" the e!amples o" FMCG products are co""ee, tea, dry cells, greeting cards, gi"ts, detergents, to$acco and cigarettes, watches, soaps etc.

M!r"et otenti!#ity o$ FMCG industry

%ome o" the merits o" FMCG industry, which made this industry as a potential one, are low operational cost, strong distri$ution networks, presence o" renowned FMCG companies. Population growth is another "actor which is responsi$le $ehind the success o" this industry.

%e!din& FMCG com !nies

%ome o" the well known FMCG companies are %ara 'ee, 1estl>, *eckitt 9enckiser, .nilever, Procter ? Gam$le, Coca#Cola, Carls$erg, @leene!, General Mills, Pepsi and Mars etc.

4|Page

C!te&ories o$ FMCG Industry

5|Page

'roduct Ch!r!cteristics

6|Page

1.1.( The to 1) com !nies in FMCG sector

7|Page

,n the household care category (like mosquito repellents), Godre8 and *eckitt are two players. Good knight "rom Godre8, is worth a$ove *s 40A crore, "ollowed $y *eckitt:s Mortein at *s 06B crore. ,n the shampoo category, C.':s Clinic and %unsilk make it to the top 055, although P?G:s Cead and %houlders and Pantene are also trying hard to $e positioned on top. Clinic is nearly dou$le the si-e o" %unsilk. Da$ur is among the top "ive FMCG companies in ,ndia and is an her$al specialist. )ith a turnover o" *s. 0B $illion (appro!. .%/ 645 million) in 4557#4553, Da$ur has $rands like Da$ur 2mla, Da$ur Chyawanprash, +atika, Ca8mola and *eal. 2sian Paints is en8oying a "ormida$le presence in the ,ndian su$#continent, %outheast 2sia, Far ast, Middle ast, %outh Paci"ic, Cari$$ean, 2"rica and urope. 2sian Paints is ,ndia:s largest paint company, with a turnover o" *s.44.3 $illion (around .%D 70& million). For$es Glo$al maga-ine, .%2, ranked 2sian Paints among the 455 9est %mall Companies in the )orld Cad$ury ,ndia is the market leader in the chocolate con"ectionery market with a A5= market share and is ranked num$er two in the total "ood drinks market. ,ts popular $rands include Cad$ury:s Dairy Milk, 7 %tar, clairs, and Gems. (he *s.07.3 $illion (.%D &;5 Million) Marico is a leading ,ndian group in consumer products and services in the Glo$al 9eauty and )ellness space. Out#oo" (here is a huge growth potential "or all the FMCG companies as the per capita consumption o" almost all products in the country is amongst the lowest in the world. 2gain the demand or prospect could $e increased "urther i" these companies can change the consumer:s mindset and o""er new generation products. arlier, ,ndian consumers were using non#$randed apparel, $ut today, clothes o" di""erent $rands are availa$le and the same consumers are willing to pay more "or $randed quality clothes. ,t:s the quality, promotion and innovation o" products, which can drive many sectors.

8|Page

1.1.* S+OT An!#ysis o$ FMCG Sector

9|Page

1.1., Indi!n Com etiti-eness !nd Com !rison .ith the +or#d M!r"ets

/Fi&ure 1.1)

10 | P a g e

'ow cost la$or gives ,ndia a competitive advantage. ,ndia:s la$or cost is amongst the lowest in the world, a"ter China ? ,ndonesia. 'ow la$or costs give the advantage o" low cost o" production. Many M1C:s have esta$lished their plants in ,ndia to outsource "or domestic and e!port markets.

'resence !cross -!#ue ch!in ,ndian companies have their presence across the value chain o" FMCG sector, right "rom the supply o" raw materials to packaged goods in the "ood#processing sector. (his $rings ,ndia a more cost competitive advantage. For e!ample, 2mul supplies milk as well as dairy products like cheese, $utter, etc.

11 | P a g e

1.1.0 Distin&uishin& $e!tures o$ Indi!n FMCG 1usiness

12 | P a g e

Limited Mass Media Options - (he challenge associated with the launch andEor $rand# $uilding initiatives is that "ew num$er o" mass media options. (+ reaches 3A= o" ur$an consumers and &7= o" rural consumers. 2lternatives like wall paintings, theatres, video vehicles, special packaging and consumer promotions $ecome an e!pensive $ut required activity associated with a success"ul FMCG.

Huge Distribution Network - ,ndia is home to si! million retail outlets, including 4 million in 7,035 towns and "our million in 34A,555 villages. %uper markets virtually do not e!ist in ,ndia. (his makes logistics particularly "or new players e!tremely di""icult. ,t also makes new product launches di""icult since retailers are reluctant to allocate resources and time to slow moving products. Critical "actors "or success are the a$ility to $uild, develop, and maintain a ro$ust distri$ution network. *. Com etition

%igni"icant Presence o" .norgani-ed %ector # Factors that ena$le small, unorgani-ed players with local presence to "lourish include the "ollowingF 9asic technology "or most products is "airly simple and easily availa$le.

(he small#scale sector in ,ndia en8oys e!emptionE lower rates o" e!cise duty, sales ta! etc. (his makes them more price competitive vis#G#vis the organi-ed sector.

2 highly scattered market and poor transport in"rastructure limits the a$ility o" M1Cs and national players to reach out to remote rural areas and small towns.

'ow $rand awareness ena$les local players to market their spurious look#alike $rands. 'ower overheads due to limited geography, "amily management, "ocused product lines and minimal e!penditure on marketing.

13 | P a g e

1.( T2E STUD3

14 | P a g e

1.* COM'ANIES 'ROFI%E

15 | P a g e

children, care "or the destitute and C,+#positive, and rural development. C.' has also responded in case o" national calamities E adversities and contri$utes through various wel"are measures, most recent $eing the village $uilt $y C.' in earthquake a""ected Gu8arat, and relie" ? reha$ilitation a"ter the (sunami caused devastation in %outh ,ndia. ,n 455A, Cindustan .nilever was rated as the most respected company in ,ndia "or the past 47 years $y 9usiness world, one o" ,ndiaHs leading $usiness maga-ines. (he rating was $ased on a compilation o" the maga-ineHs annual survey o" ,ndiaHs Most *eputed Companies over the past 47 years. C.' is the market leader in ,ndian consumer products with presence in over 45 consumer categories such as soaps, tea, detergents and shampoos amongst others with over A55 million ,ndian consumers using its products. ,t has over &7 $rands. %i!teen o" C.'Hs $rands "eatured in the 2C1ielsen 9rand quity list o" 055 Most (rusted 9rands 2nnual %urvey (455;). 2ccording to 9rand quity, C.' has the largest num$er o" $rands in the Most (rusted 9rands 'ist. ,tHs a company that has consistently had the largest num$er o" $rands in the (op 75 and in the (op 05 (with 6 $rands). Cindustan .nilever:s distri$ution covers over 0 million retails outlets across ,ndia directly and its products are availa$le in over 3.& million outlets in ,ndia, i.e., nearly ;5= o" the retail outlets in ,ndia. ,t has &B "actories in the country. (wo out o" three ,ndians use the companyHs products and C.' products have the largest consumer reach $eing availa$le in over ;5 per cent o" consumer homes across ,ndia.

16 | P a g e

1.*.( 'roduct 'ort$o#io

Food

18 | P a g e

1.*.* 1CG M!tri4 $or 2indust!n Uni#e-er %imited

Ponds Fair ? 'ovely 'u! C!sh Co. is the second column which states that there is High Market Share and Low growth Industry. ,n this category "ollowing appearsF Pepsodent

%ur" !cel. ,t is a low growth industry $ecause detergent market is a saturated market.

19 | P a g e

Do& is the third column which states that it has a Low Market Share and it is Low Growth Industry. Following appears in this category 2viance )heel 5uestion M!r" is the "ourth column, which states that it has a Low Market Share and a High Growth Industry. Following appears in this categoryF Close .p *in

20 | P a g e

1.*., S+OT An!#ysis o$ 2indust!n Uni#e-er %imited

Stren&ths6
%trong company image %trong $rand port"olio %uccess o" the slogan Iuantity ? variety ""ective ? attractive packaging Cigh quality man power %olid $ase o" the company ,nnovative aspects Corporate $ehavior Cealth ? personal care products Celp people getting more out o" li"e

+e!"nesses6
Cigh prices o" products %u$stitutes products

Policy o" spending "or the social responsi$ility 'ack o" control in the market Dual leadership Decrease in revenues *educed spending "or research ? development

O ortunities6
Changing li"e style o" people 1ew markets ,ncrease the volume o" production

21 | P a g e

Focus on *?D 'ow income consumers Celp in improving people diet ? daily lives

Thre!ts6
Competitors(P?G,) Political e""ects 'egislative e""ect nvironmental e""ect conomic crises <$stacle "aced Change in li"e style o" people Chance "or price war ,ncrease in production ? la$or cost.

22 | P a g e

1.*.0 'rocter !nd G!m7#e

23 | P a g e

shampoo. ,n 0BBA Procter ? Gam$le Come Products launches Cead ? %houlders shampoo. ,n 4555, Procter ? Gam$le Come Products introduced (ide Detergent Powder # the largest selling detergent in the world. ,n 455&, Procter ? Gam$le Come Products 'imited launched Pampers # world:s num$er one selling diaper $rand. (oday, Proctor ? Gam$le is the second largest FMCG Company in ,ndia a"ter Cindustan 'ever 'imited.

24 | P a g e

1.*.8 'roduct 'ort$o#io

25 | P a g e

1.*.9 1CG M!tri4 $or 'rocter !nd G!m7#e

/Fi&ure1.*: St!rs, the "irst column in the matri! suggests that it is a High Growth Industry and likewise it has a High Market Share. ,n this category "ollowing appearsF

1.*.9 1CG M!tri4 $or 'rocter !nd G!m7#e

5uestion M!r" is the "ourth column o" the 9CG matri!, it suggests that there is Low Market Share and High Growth Industry, "ollowing appearsF

*e8oice %hampoo appears, the %hampoo industry has a lot o" growth potential $ut *e8oice has a low market share.

1.*.; S+OT An!#ysis o$ 'rocter !nd G!m7#e Stren&ths6

'eading Market Position

Diversi"ied and innovative product port"olio

%trong "inances in the past

+e!"ness6

Iuality control pro$lem

Decreased *evenues in their 1ortheast 2sian Market

O ortunities6

Developing Markets

Demographic trends across the world

Thre!ts6

Competitors

*ising cost o" energy prices

conomic %lowdown in the .% and uro -one

1ew *egulations

27 | P a g e

CHAPTER 2 RESEARCH METHODOLOGY

(.1 RESEARC2 DESIGN

*esearch design "or the pro8ect is Descriptive research design. 2 descriptive research design is the one which is description o" the state o" a""airs as it e!ists at present. ,t includes survey and "act "inding enquiries o" di""erent kinds. (he researcher has no control over the varia$les. ,n it detailed study o" the awareness o" $rand among customers will $e done. (he in"ormation will $e collected with the help o" an un$iased, non disguised and structured questionnaire.

(.( SAM'%E DESIGN

2 sample design is a de"inite plan "or o$taining a sample "rom a given population. ,t re"ers to the techniques or procedures the researcher would adopt in selecting items "or the sample. %ample design chosen "or the purpose o" the study is simple random sampling.

(.* SAM'%E SI<E

(he target sample "or this study is ()) res ondents in various areas o" Delhi that was done independently and they are "urther divided into 1)) m!#es !nd 1)) $em!#es= that lies in age group o" 45#65 including $usiness class, service class, students and house wives.

(., SAM'%E AREA

(he sampling unit may $e a Geographical one such as state, District etc. (he geographical sampling unit under study has covered the area o" Delhi. (he various locations where survey was conducted include *a8ouri Garden, *a8a Garden, *eliance "resh, (raditional %hops, %upermarket.

28 | P a g e

(.0 DATA CO%%ECTION

Data will $e collected through $oth $y primary and secondary sources. 'rim!ry D!t!: Primary data will $e collected through, a structured, un$iased and non disguised questionnaire, $eing "illed in $y those customers who are coming out o" the di""erent retail outlets. Personal survey will also help in collection o" data. Second!ry d!t!: %econdary data will $e collected through we$site o" the company, 8ournals and maga-ines. *eports pu$lished $y the various research organi-ations.

(.8 DATA ANA%3SIS

2"ter collecting the data, data analysis was done in which use o" graph, charts and ta$les and many other statistical tools were taken to do the analysis o" the present situation.

29 | P a g e

CHAPTER 3 ANALYSIS AND DESCRIPTION

T!7#e *.1 shows the data that has $een taken "rom the customers to know the pre"erence "or place o" shopping "or purchasing consumer goods.

're$erence $or #!ce o$ urch!sin& Consumer Goods. 2ttri$utes %upermarket Mall (raditional %hop #%hopping (otal Female 4B 07 7& & 055 Male &5 46 &B A 055 /T!7#e *.1: Percentage 4B.7= 0B.7= 63= 7= 055=

're$erence $or #!ce o$ 'urch!sin& Consumer Goods

53 60

50 39 40 29 30 15 20 7 10 0 Supermark et 3 E!opping Mal e 3 0 24 Fe mal e

Mall

Traditional S!op

/Fi&ure *.1:

30 | P a g e

*espondents were given the "ollowing options and were asked to choose out o" the "ollowing which is the most pre"erred place "or shopping o" household consuma$les. (he results o$tained were divided in two categories that are male and "emale. (he most pre"erred place "or shopping in case o" "emales is traditional shop. 2nd in case o" males again they pre"erred to shop "rom traditional shop. 2lmost 63= respondents "avored that they would go to traditional shop "or the shopping $ecause o" the ease o" going there, as these shops are near to oneHs home. 2"ter this second is supermarket people like to go there and shop. (he least pre"erred option was the # shopping as people do not "ind it convenient, moreover on net they are not a$le to see the products, so they pre"er it least.

31 | P a g e

T!7#e *.( depicts the purchasing pattern o" the consumers "or purchasing household consuma$les

'urch!sin& '!tterns o$ the Consumers. 2ttri$utes )eekly Fortnightly Monthly (otal Female 05 4A 3& 055 Male 7 45 A7 055 /T!7#e *.(: Percentage A.7= 4&.7= 3B= 055=

'urch!sin& '!tterns o$ the Consumers

75 "0 63 70 60 50 Fe mal e 27 20 10 5 Mal e

40

30 20 10

0 #eekl$ Fortnig!tl$ Mont!l$

/Fi&ure *.(: *espondents were asked a$out their purchase $ehavior. (hey were asked how "requently they go "or the purchase o" household consuma$les. 2gain "or this question responses were divided according to the "emale and male category. 9oth "emale and male respondents would like to go "or shopping on the monthly $asis. )hen contacted they replied that this helps in maintaining the $alances all the month. (hey purchase "or the whole month in advance and consume products accordingly. (hey also replied that it is convenient to "ollow this pattern as need o" going again and again to the shop is eliminated. 2"ter monthly second came the "ortnightly and the last one is weekly.

32 | P a g e

T!7#e *.* shows the e!penditure o" income on purchase o" various product categories. ,t shows

33 | P a g e

Cere we asked the respondents a$out their e!penditure on the various categories. <ptions given to them were skin care, oral care, hair care and laundry. (hese are the very $asic items that are required $y the households. *espondents replied in the "ollowing manner they said that ma8or part o" their income is spent on laundry i.e. &0= a"ter this came the hair care, 4A= and skin care 47=. (here is not much di""erence $etween skin care and hair care. 'ast was the oral care with 0A=. %o, the consumers spent most on laundry and least on oral care. 2n awareness regarding the oral care segment needs to $e generated, so that this sector can also grow like the other sectors.

34 | P a g e

T!7#e *., shows the 9rand *ecall o" the products o""ered $y Cindustan .nilever 'imited. Customers are required to name any 7 products o""ered $y Cindustan .nilever 'imited.

1r!nd Rec!##. 2ttri$utes %ur" !cel %unsilk Pepsodent Ma!imum *esponses 005 A5 75 /T!7#e *.,:

1r!nd Rec!##

110 120 100 70 "0 50 60 40 20 0 Sur% e&'el Sun ilk Pep odent Seri e 1

/Fi&ure *.,:

Cere we asked "rom the respondents to name 7 $rands o""ered $y the C.', these are the top & $rands that consumers remem$er. (op o" the list is %ur" !celJ this can $e attri$uted to the "act that C.' does a wonder"ul and innovative advertising "or %ur" !cel. 2"ter this second came %unsilk %hampoo "rom C.' and third came Pepsodent. )e can see that C.' has a diverse product port"olio and consumers remem$er di""erent products "rom the C.'. (his data indicated that the 9rand *ecall power o" C.' is very huge.

35 | P a g e

T!7#e *.0 shows the 9rand *ecall o" the products o""ered $y Procter ? Gam$le. Customers are required to name any 7 products o""ered $y Procter ? Gam$le.

1r!nd Rec!##. 2ttri$utes Pantene 2riel Cead ? shoulders Ma!imum *esponses B; 74 AA /T!7#e *.0:

1r!nd Rec!##
100 "0 60 Serie 1

40 20 0 Pantene (riel )ead * S!oulder

/Fi&ure *.0: Cere we asked "rom the respondents to name 7 $rands o""ered $y Procter and Gam$le. Cere ma!imum people remem$ered the Pantene %hampoo, this "act is attri$uted to 9rand endorser that P?G is using currently i.e. @atrina @ai". (his shows the e""ectiveness o" the advertisement. 2"ter this ne!t is the detergent 2riel, it is also used hugely $y the consumers. 2nother product that came in top & is the shampoo i.e. Cead and %houlders.

36 | P a g e

T!7#e *.8 shows the various parameters a$out the product that a""ect the $uying decisions o" the customers.

'!r!meters th!t !$$ect 7uyin& decisions. 2ttri$utes Iuality Price asy 2vaila$ility (otal *esponses 37 ;3 6B 455 /T!7#e *.8: Percentage &4.7= 6&= 46.7= 055=

'!r!meters th!t !$$ect 1uyin& Decisions

Iuali ty Pric e asy 2vaila$ility

49+ 25, "6+ 43,

65+ 32,

/Fi&ure *.8:

*espondents were given an option to choose "rom the "ollowing attri$utes the most in"luencing "actor that a""ects their $uying decisions. (he attri$utes were quality, price and easy availa$ility. 6&= o" the respondents gave their vote to the price "actor "ollowed $y quality which is &4= and the last is easy availa$ility which is 47=. (he respondentHs replies show that price is the most in"luencing "actor that a""ects a personHs $uying decision. )hat product consumer will purchase depends upon its price. 2"ter this came the quality, the products in FMCG category is availa$le very easily and they have a lot o"

37 | P a g e

su$stitutes also. %o consumer has a lot o" choice in this category so they should "ocus on quality

38 | P a g e

T!7#e *.; shows the Pre"erence o" shampoos $y the consumers. (hey were asked to choose the shampoo out o" the "ollowing that they currently use.

're$erence $or the use o$ Sh!m oo. 1ame o" the %hampoo %unsilk Cead and %houlder Pantene Clinic Plus (otal *esponses 65 73 A& &0 455 /T!7#e *.;: Percentage 45= 4;= &3.7= 07.7= 055=

're$erence $or the use o$ Sh!m oo

%unsilk Cead and %houlders 16, 36, 2", Pantene Clinic Plus

20,

/Fi&ure *.;:

Cere we asked the respondents a$out the hair care segment, and we "ocused on the shampoo that they would like to use out o" the "ollowing options. <ptions are designed on a predetermined $asis that includes the product "orm $oth C.' and Procter and Gam$le. %unsilk and Clinic Plus are the products o""ered $y C.' and Cead and shoulders and Pantene are the products o""ered $y Procter and Gam$le. Cere we can see that ma!imum respondents replied in the "avor o" Pantene which is &3= a"ter this ne!t is the Cead and %houlders which is 4;=, $oth these products are o""ered $y Procter and Gam$le. %o we can see that in this category Procter and

39 | P a g e

Gam$le is the winner. %unsilk "rom C.' got 45= votes and Clinic Plus "rom same $rand got

Gam$le is the winner. %unsilk "rom C.' got 45= votes and Clinic Plus "rom same $rand got

50 34 40 30 20 10 0 Sur% E&'el (riel 20 29 Seri e 1

Tide

-in

#!eel

/Fi&ure *.>: 2nother category to study in our pro8ect was the 'aundry section. (his is the most important part o" the household consuma$les. Cere also "or getting a direct comparison $etween C.' and Procter and Gam$le we have included the products "rom $oth the companies. %ur" !cel, )heel and *in are "rom C.' and 2riel and (ide are "rom Procter and Gam$le group. Ma!imum votes came in "avor o" %ur" e!cel i.e. &3= a"ter this came 2riel with 44.7= so here we can say that %ur" !cel and 2riel are positioned against each other.

40 | P a g e

2nd in the middle income level *in has gained more votes i.e. 0A= as compared to (ide i.e.05=. 9ut here we have to see that )heel a product o" C.' has got 06.7= share, which is also a signi"icant num$er. %o we came to the conclusion that C.' is the winner in the 'aundry Category.

T!7#e *.1) shows the toothpaste that is $eing used $y the consumers.

1r!nd o$ Tooth !ste used 7y the Consumers. 1ame o" the (oothpaste Close .p Pepsodent <ral 9 2ny other (otal *esponses 47 ;& &3 73 455 /T!7#e *.1): Percentage 04.7= 60.7= 0;= 4;= 055=

1r!nd o$ Tooth !ste used 7y the Consumers

"3 100 50 0 .lo e /p 25 Pep oden t 0ral 1 (n$ 0t!er 25 36 56

Serie 1

/Fi&ure *.1):

41 | P a g e

2nother category o" our study was the <ral Care %egment. Cere also we have included the products "rom $oth the companies in the options. Pepsodent "rom the C.' group got the ma!imum votes i.e. 60.7= "ollowed $y any other category in this respondents replied Da$ur 'al (oothpaste, Meswak (oothpaste. (his show that today people pre"ers the her$al products also. Close .p got 04.7= votes and <ral 9 "rom Procter and Gam$le got 0;= votes. %o here also C.' has the advantage, $ut Procter and Gam$le needs to launch more products in the <ral Care segment. T!7#e *.11 shows the data relating to the skincare product that is $eing used $y the consumers.

. S"in C!re 1r!nd used 7y the Consumers 1ame o" the Product Fair ? 'ovely Ponds <lay +aseline (otal *esponses 6; AB 7& 45 455 /T!7#e *.11: Percentage 46= &B.7= 43.7= 05= 055=

S"in C!re 1r!nd used 7y the Consumers

90 79 "0 70 60 4" 50 40 Serie 1 30 20 20 53

10 0 Fair * 3o4el$ Pond 0la$2a eline

/Fi&ure *.11:

42 | P a g e

%kin Care category is another part o" our study. Cere we have tried to analy-e the usage pattern o" the consumers in the skin care. ,t is the highly innovative marketJ new products keep on coming every day. 2gain options include products "rom $oth the companies C.' and Procter and Gam$le. Ponds o""ered $y C.' got the ma!imum votes i.e. &B.7= a"ter this came <lay o""ered $y Procter and Gam$le which got 43.7= votes. %o the competition here is intense. Procter and Gam$le has introduced 2nti#ageing "ormula in ,ndia with <lay (otal people are satis"ied with the results. ""ects and

CHAPTER 4 SUMMARY, CONCLUSION AND RECOMMENDATIONS

(he study was on the Comparative analysis o" two FMCG giants "ocusing upon the $rand awareness o" the consumers. .nder the pro8ect a comparative study was done $y taking the two leading FMCG companies working in ,ndia. (he two companies are Cindustan .nilever 'imited and Procter ? Gam$le. 9oth these companies are in competition with each other. 9oth the companyHs "ocus is on their advertising. (he companies have a wide port"olio o" products. Consumer goods are those goods that are used widely $y the consumers in their day to day li"e. %o a ma8or task is to make these products availa$le to the consumers. Cindustan .nilever 'imited is the num$er one company in ,ndia in FMCG category. ,t has a presence in laundry, skin care, hair care and oral care. %ame goes "or Procter ? Gam$le it also present in all the a$ove categories. (he study was "ocused on these three categories, what product port"olio $oth the companies have. (he study moves around the comparison o" $oth the companies, regarding their $rand

44 | P a g e

After successful completion of the study, we have come up with the following $indin&s6

.nilever may $e losing the $attle to Procter and Gam$le around the world, $ut when it comes to ,ndia it will take P?G a valiant e""ort to move ahead in the market dominated $y Cindustan .nilever 'imited (a su$sidiary o" .nilever). (he rivalry $etween the two has $een going on worldwide and is heated up in ,ndia too.

Cindustan .nilever 'imited is ,ndiaHs largest FMCG with an array o" household $rands. (heir products have $ecome an integral part o" the country used $y everyone in every strata o" the society.

(he strength o" Cindustan .nilever limited lies in its distri$ution network covering 3.& million outlets, an unmatcha$le port"olio o" $rands, innovation and research and development capa$ilities o" the parent company. ,n the hair care segment, two o" Cindustan .nilever 'imited $iggest $rands, %unsilk and Clinic Plus are pitted against Procter and Gam$leHs Pantene Pro#+ and Cead ? %houlders. From the study we came to know that today most o" the people pre"er Pantene Pro#+ and Cead ? %houlders, $oth these $rands are "rom Procter and Gam$le, share o" Cindustan .nilever 'imited has reduced. (his is due to the "act that $rand endorsers used $y P?G are a$le to connect well with the consumers and it is re"lected $y the consumerHs responses.

,n the "a$ric care or laundry sector also this competition is very strong. C.'Hs low priced $rand, )heel, still holds a ma8or share o" 06.7= which is greater than (ide and *in. Ma8or competition is $etween %ur" !cel and 2riel. 2riel has come strong in competition to C.' $ecause P?G have "ocused on certain niches and are pushing growth aggressively in premium categories. C.' has migrated its "lagship $rand *in %upreme $ar to the premium $rand %ur" !cel $ar to strengthen its presence in the *s. 7555 crore ,ndian "a$ric wash category.

Cindustan .nileverHs Ponds have speci"ically remained a top segment $rand and to compete with it. P?G has launched its popular range o" <lay (otal into the market. 2nd

45 | P a g e

in our survey, this "act has $een proved right again almost 65= o" the respondents replied in "avor o" Ponds $ut it is "ollowed $y P?GHs <lay which is appro!imately 4A=. ,n the oral care segment Cindustan .nilever 'imitedHs Pepsodent is the clear winner, Pepsodent has a very huge $rand recall, people have started using Pepsodent. 2nother ma8or "inding is that a lot o" people now use Da$ur 'al (oothpaste, and Meswak (oothpaste which are out o" the $rand $asket o" $oth Procter and Gam$le and Cindustan .nilever limited.

(he most in"luencing "actor that a""ects the $uying decision o" the consumers is still the price, "ollowed $y quality and then easy availa$ility. People still consider price as the most important "actor, during the price war $etween the two companies (ide emerged as a leader $ecause o" its low price.

2nother "inding is that most o" the consumers still want to go to traditional shop "or purchasing household consuma$les. # %hopping is the least pre"erred $y the consumers. 2"ter analy-ing the purchase pattern o" the consumers we "ind that 3B= o" the respondents said that they would like to shop "or household consuma$les on a monthly $asis. 2s they "ind it convenient to shop in this manner.

On the asis of the a ove findings these can e some recommend!tions for oth the companies, i!e! Hindustan "nilever Limited and #rocter and Gam le

Cindustan .nilever 'imited and Procter and Gam$le should launch new products and should e!pand their distri$ution network.

Cindustan .nilever 'imited will have to consistently widen its port"olio with new $ene"its, variants and "ormats to cater to a""luent people who have the propensity to spend.

9oth the companies should conduct more surveys in order to know a$out the customer satis"action in the rural areas.

46 | P a g e

9oth the companies can provide incentive in hair care segment like $uy one get one "ree o""er with shampoo, price cuts and massive advertising.

2s per the survey that has $een conducted "or the study we have "ound out that people still wants to go to traditional shop "or the purchase o" household dura$les, so the company should o""er attractive o""ers to the retailers to capture the greatest shel" space.

Detergent market is saturated, and $oth the companies have products in premium range and middle income range moreover, they are indulged in price war since 4556, now they have to launch new products like cloths conditioners, cloth whiteners, starching products etc all these sectors are untapped, they can "ocus on these sectors. 9ut prices o" these products should $e reasona$le as small companies like *eviveJ .8ala etc already e!ist and are good competition.

,n oral care C.' presence is very signi"icant with Pepsodent, $ut they are incurring lots o" losses with Close .p. (hey have introduced various "lavors $ut it had not worked as they have thought, they even had the advantage o" "irst mover $ecause it was with Close .p that Gel toothpastes are introduced in <ral Care segment. (hey should "ocus on a niche market and then position their product.

5n t!e Skin .are egment 6ot! t!e 'ompanie are gi4ing 'ompetition to ea'! ot!er7 (%ter Pro'ter and 8am6le introdu'ed 0la$ in 5ndia 9it! t!eir anti-ageing %ormula )indu tan /nile4er limited 'ame up 9it! anti-ageing %ormula 9it! Pond 7 1ot! are gi4ing ne'k-to-ne'k 'ompetition to ea'! ot!er7 (not!er 6rand o% )/3 i 2a eline+ 9!i'! !a a range o% lotion + 6ut it !a to 6e appre'iated 9it! e%%e'ti4e ad4erti ement7 T!e$ 'an 'reate a9arene %ree gi%t al o7 t!roug! door to door operation7 T!e$ 'an o%%er di 'ount and

47 | P a g e

REFERENCE

Re$erences $rom 'rint M!teri!#s

0. Malhotra 1aresh.@. K4556L, Marketing *esearchF 2n applied orientation, Pearson ducation. 4. (he Marketing Maga-ine o" ,,F( @olkata

&. Philip @otler (455A) M Marketing Management

Re$erences $rom E#ectronic Medi!

0. 4. &. 6. 7. A. www.hul.co.in httpFEEwww.pg#india.comEhpEinde!.htm www.i$e".org httpFEEi$e".orgEartdisplay.asp!NcatOidP66A?artOidPAB&&?re"erPi0500 httpFEEwww.economywatch.comEworld#industriesE"mcg.html httpFEEwww.chilli$ree-e.comEarticlesOvariousE"mcg#in#india.asp

3. www.i$e".orgEpd" "iles K2ccessed on 4B 1ovem$er, 455BL

;.

httpFEEwww.naukrihu$.comEindiaE"mcgEoverviewE

B. httpFEEwww.coolavenues.comEknowEmktgEamritanshuO4.php&

48 | P a g e

ANNEXURE

5uestionn!ire
, am PGDM student conducting a market survey on $rand awareness o" FMCG companies "or household consuma$les. Qou are kindly requested to respond to the "ollowing questions. (he in"ormation provided $y you will $e kept con"idential and will $e used "or academic purpose only. 1ameF RRRRRRRRRRRRRRRRR. <ccupationRRRRRRRRRRRRRRR.. GenderF 0. Ma le Femal e

)here do you like to go "or shopping o" household consuma$lesN a ) %uper market $) Mall c) (raditional %hop d) # shopping

4.

Cow "requently do you purchase the household consuma$lesN a )eekl $) c) ) y Fortnightly Monthly )hat is your annual incomeN a ) 9elow *s. 055555 p.a. $) *s. 055555#455555 p.a. d) 2$ove *s. 755555 p.a.

&.

c) *s. 475555#755555 p.a.

6.

a) 'aundry

Ma8or part o" your income is spent on which o" the "ollowing productsN $) Cair c) %kin d)<ral care Care Care

7. Do you know a$out the products o""ered $y Cindustan .nileverN 1ame any "ive RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR.. 3. Do you know a$out the products o""ered $y Procter and Gam$leN 1ame any "ive RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR... A. 2re you $rand consciousN a) Qes

$) 1o

;. )hich parameter a""ects your $uying decisionN

a) Iuality
49 | P a g e

$) Price

c) asy 2vaila$ility

B. 1ame any two FMCG companies producing household consuma$lesN RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR.. 05. )hich $rand do you pre"er out o" the "ollowingN

a )

%unsilk

$) Cead ? %houlders

c) Pantene

d) Clinic Plus

00. )hich detergent you use out o" the "ollowingN a ) %ur" !cel $) 2riel c) (ide d) *in e) )heel

04. )hich toothpaste do you use out o" the "ollowingN

a ) Close up $) Pepsodent c) <ral 9 d) 2ny other

0&. )hich o" the "ollowing skincare products you have used out o" the "ollowingN a Fair ? $) c) ) 'ovely PondHs <lay d) +aseline 06. 2re you satis"ied with the product availa$ility at your nearest shop or retail outletN a ) $ ) c ) +ery %atis"ied %atis"ied Dissatis"ied