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INTRODUCTION

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INTRODUCTION

There was a time when the FMCG companies ignores rural market, they took

no any interest to produced or sell products in rural market in India. It was the initial

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

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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 an acronym for Fast Moving Consumer Goods, which refer to things

that we buy from local supermarkets on daily basis, the things that have high turnover &

are relatively cheaper.

FMCG in 2009

After 4 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.

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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 under performed 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.

Comparison of 2008 and 2009

After two years of sinking performance of FMCG sector, the year 2008 has

witnessed the FMCGs demand growing. Strong growth was seen across various

segments in FY09. 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 registered a growth of around

8%. Packets and sachets contributed to the highest growth in rural areas. Growth in

FMCG depends on two factors:

Increase in penetration and consumption in rural areas

Change in aspirations and tastes of the urban population

Both these factors contributed to growth in 2009. 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 higher input prices, while others were able to pass on the cost

to the consumers.

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Sectors Outlook

FMCG is the fourth largest sector in the Indian Economy with a total market size of

Rs.60,000 crores. FMCG sector generates 5% of total factory employment in the country

and is creating employment for three million people, especially in small towns and rural

India.

According to a CII A T Kearney Report, the FMCG sector in India is expected to grow

at a compounded growth rate (CAGR) of 9% to a size of Rs.1,43,000 crores by 2010

from Rs. 93,000 crores at present.

With a growth of 52.5%, the BSE FMCG index has, during the last 1 year outperformed

the sensex, which could manage a growth of 41% only. 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 FY09, the sector has witnessed a

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double-digit growth in profits and revenues. The sector has registered an up trend in

growth across categories, such as health supplement, shampoo, toothpaste, hair oils, and

mosquito repellant, as shown in table below:

Sales Value Growth %

Categories 2005-2006 2007-2008 Apr.2009

Health Supplement

(Chyawanprash)

-5% 0% 23%

Shampoo 10% 23% 19%

Toothpaste 5% 6% 16%

Hair Oils 9% 18% 23%

Mosquito Repellant 13% 10% 29%

Source: CII A T Kearney Report, (2000)

Sector Financials In millions

31-03-2009 31-03-2008 31-03-2007

Net Sales

Sales Growth

164,196

10.8%

148,241

2.0%

145,380

-

Profit after Tax

PAT Growth

19,595

16.6%

17,001

-24.2%

21,008

-

Market Capitalization 74,746 65,810 63,072

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Enterprise Value 662,540 645,477 551,971

Return on Capital

Employed (ROCE)

47.1% 51.0% 45.5%

P/E Ratio 26.7% 27.1% 21.0%

Source: CII A T Kearney Report, (2000)

Growth Prospects

With the presence of 12.2% of the world population in the villages of India, the Indian

rural FMCG market is something no one can overlook. Increased focus on farm sector

will boost rural incomes, hence providing better growth prospects to the FMCG

companies. Better infrastructure facilities will improve their supply chain. 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 higher growth in the near future.

It is expected that the rural income will rise in 2008, 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 34%. However, rural

India accounts for more than 40% consumption in major FMCG categories such as

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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, there is a large raw material

base suitable for food processing industries. India is the largest producer of livestock,

milk, sugarcane, coconut, spices and cashew 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.

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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.

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Top Players in FMCG Sector

1. Hindustan lever limited (HLL)

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 Hygiene & Health Care

10. Marico Industries

Secondary Players

1. Colgate-Palmolive (India) Ltd.

2. Godrej Consumers Product Ltd.

3. Nirma Ltd.

4. Tata Tea Ltd.

5. Parle Agro

6. H. J. Heinz

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OBJECTIVE OF THE STUDY

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OBJECTIVE OF THE STUDY

To understand the demand pattern of FMCG products in the rural 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.

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SCOPE & IMPORTANCE

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SCOPE & IMPORTANCE

The Indian FMCG sector has a market size of US $13.1 billion. FMCG sector is expected

to grow by over 60% 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 2005 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 2002 04, 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.

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TOPIC DETAIL

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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 (2004), 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. She 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. She 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 140 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 (2003), 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.

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3. Aithal, K Rajesh (2004), 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 4 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.

Panoramic View

India has a population of over 1 billion & 4 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

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goods marketers experience that dealing with India is like dealing with many small

markets at the same time.

Indian consumer goods market is expected to reach $400 billion by 2010.

India has the youngest population amongst the major countries. There 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 $

millionMarket Share in %

15Indian

CompaniesMNCs

Indian

CompaniesMNCs

1992 2004 1992 2004

Breakfast

cereals2 25 100 0 52 48

Wafers,

potato

chips

6 35 100 0 37 63

Washing

Machines40 570 98 2 51 49

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TV 630 3,030 97 3 49 51

1992 $=30 rupees

2004 $=45 rupees

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 135 m in 2002 to 153 m in

2010, which represents the largest potential market in the world.

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Rural and urban potential

Urban Rural

Population 2001-02 (m household) 53 135

Population 2009-10 (m household) 69 153

% Distribution (2001-02) 28 72

Market (Towns/Villages) 3,768 627,000

Source: Statistical Outline of India (2001-02), NCAER

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

1. Income

2. Socio-Economic status

3. Age demographics

4. Geographical dispersion

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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. Higher income

2. Upper middle income

3. Middle middle income

4. Lower middle income

5. 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 higher 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.

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Consumer Classification

According to National Council of Applied Economic Research (NCAER) there are 5

consumer classes that differ in their ownership patterns and consumption behavior across

various segments of goods.

Consumer Classes

Annual Income in

Rs.

1996 2001 2007 Change

The Rich

Rs. 215,000 and

more

1.2 2.0 6.2 416%

The Consuming

Class

Rs 45- 215,000 32.5 54.6 90.9 179%

The Climbers Rs. 22-45,000 54.1 71.6 74.1 37%

The Aspirants Rs. 16-22,000 44 28.1 15.3 -65%

The Destitute Below Rs. 16,000 33 23.4 12.8 -61%

Total 164.8 180.7 199.2 21%

Source: NCAER

The 5 classes of consumer households (consumer classification) show the

economic development across the country based on consumption trends.

Socio economic classification

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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.

The urban area is segregated into: A1, A2, B1, B2, C, D, E1, E2

Socio-Economic Classification

Occupation Education

Illiterate

Less

than 4

yrs in

school

5-9 yrs

of

school

School

certificate

Some

college

Graduate

Post-

graduate

Skilled E2 E1 D C C B2 B2

Unskilled E2 E2 E1 D D D D

Shop owner D D C B2 B2 A2 A2

Petty trader E2 D D C C B2 B2

Employer of-

Above 10

persons

B1 B1 A2 A2 A1 A1 A1

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Below 10

persons

C B2 B2 B1 A2 A1 A1

None D C B2 B1 A2 A1 A1

Clerk D D D C B2 B1 B1

Supervisor D D C C B2 B1 A2

Professional D D D B2 B1 A2 A1

Senior

executive

B1 B1 B1 B1 A2 A1 A1

Junior

executive

C C C B2 B1 A2 A2

Source: Indian readership survey (IRS)

Sections A & B refer to High-class- constitutes over a quarter of urban population

Sec C refers to Middle-class-- constitutes 21% of the urban population

Sections D & E refer to Low-class-- constitutes over half the urban

population

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:

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Skilled workers 33%

Petty traders 12%

Clerk/Supervisor 37%

Shop owners 18%

3/4th of them have studied till 10th or 12th class while the remaining 1/4th 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, Ahmedabad, Bangalore,

and Hyderabad. With increase in economic prosperity, this population (upper strata

consumers) is growing at 10 percent annually.

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The rural area is segregated in to: R1, R2, R3, R4.

Education of

chief wage

earner

Type of House

Pucca Semi-pucca Kuchcha

Professional

degree

R1 R2 R3

Graduation/ PG R1 R2 R3

College R1 R2 R3

SSC/HSC R2 R3 R3

Class 4-Class 9 R3 R3 R4

Up to class 4 R3 R3 R4

Self-learning R3 R4 R4

Illiterate R4 R4 R4

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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 higher share in developing countries as

compared with that of developed countries.

Age distribution if Indian population (In Millions)

Year/ Age 2006 2001 1996

Below 4 yrs113.5 108.5 119.5

5-14 yrs 221.2 239.1 233.2

15-19 yrs122.4 109.0 90.7

20-34 yrs279.1 246.8 224

35-54 yrs239.2 207.3 178.1

55 & above118.7 101.7 88.7

Total1094.1 1012.4 934.2

Consumption Trends

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Food Essentials45.68%

Essential Services (water, power, rent,

and fuels)10.1%

Clothing4.9%

Footwear0.63%

Medicare4.25%

Transport & Communication14.51%

Recreation, Education, and Culture Less than 4%

Home Goods3.25%

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 40% of the geographical share.

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RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

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Research and experimental development is formal work which is undertaken

systematically to increase the stock of knowledge ,including knowledge of humanity,

culture and society and the use of this stock of knowledge to devise new applications , it

is used to establish facts, reaffirm the results of previous work ,solve new or existing

problems support theorems or developed new theories .A research project may also be an

expansion of past work in the field. To test the validity of instruments ,procedures or

experiments, research may replicate elements of prior projects ,or projects as a whole.

The primary purpose of basic research are documentation ,discovery, interpretation

Or the research and development of methods and systems for the advancements of human

knowledge.There are several forms of research

:scientific,humanities,artistic,economical,social,business,marketing,practitioner research

etc.

Data collection

1. Secondary data: it will be collected with the help of books, research papers,

magazines, news papers, journals, internet, etc.

Research instruments:

The research instruments that have been used in this report are :

GRAPHS

PI CHARTS

BAR GRAPHS

LINES

DIAGRAMS

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ANALYSIS & INTERPRETATION

ANALYSIS & INTERPRETATION

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1. Which soap u prefer to use?

The reaction of people towards various SOAP brands can be tabulated in the

following manner:

Brands Lux Dettol Lifebuoy others

Percentage 36 22 18 24

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 brands (EXCEPT LUX, DETTOL,

LIFEBUOY) covers 24% 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 18%.

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

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0

5

10

1520

25

30

35

40

percentage

brands

demand of soap brands

lux

dettol

lifebuoy

others

2. Which pack u prefer to use?

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

for the researcher to distribute the consumers on the basis of their demand for the

various packs of SOAP 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 Single pack Family pack (3 in 1)

Percentage 56 44

In the survey that the researcher conducted, she 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. 44% consumers

demand family packs i.e. 3 in 1 pack.


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0

1020

30

40

50

60

percentage

packs preferred by

customers

demand of packs of soap

single pack

family pack ( 3 in 1 )

1. Which tea u prefer to use?

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The reaction of people towards various TEA brands can be tabulated in the

following manner:

Brands Tata Tea Brooke Bond Taj Mahal Others


In the survey that the researcher 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 other brands (EXCEPT

TATA TEA, BROOKE BOND, 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.


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0

5

1015

20

25

30

35

percentage

brands

demand of tea brands

tata tea

brooke bond

taj mahal

others

2. Which tea pack u prefer to use?

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

for the researcher 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 Sachet Medium pack Large pack

Percentage 48 32 20

In the survey that the researcher conducted, she 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., 48% 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:

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0

10

20

30

40

50

percentage

packs preferred by customers

demand of tea packs

sachetmedium pack

large pack

3. Which tooth paste u prefer to use?

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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 Pepsodent Colgate Close Up OthersPercentage 27 35 22 16

In the survey that the researcher 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 others 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:

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0

5

10

15

20

25

30

35

percentage

brands

demand of tooth paste

pepsodent

colgate

close up

others


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

researcher 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


Tooth paste pack Small pack Medium pack Family pack

Percentage 34 48 18

In the survey that the researcher conducted, she 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 34% consumers demand small

packs. 48% consumers demand medium packs. 18% consumers demand large pack.

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

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0

10

20

30

40

50

percentage


demand of packs of tooth paste

small pack

medium pack

family pack

5. Which detergent u prefer to use?

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The reaction of people towards various DETERGENT brands can be tabulated in

the following manner:

Brands Surf Rin Tide Others


In the survey that the researcher 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 other brands (EXCEPT SURF, RIN, TIDE) which captures

16% of the market share.


graph:

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0

5

10

15

20

25

30

35

percentage

brands

demand of detergents

surf

rin

tideothers


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packs of DETERGENT brands available in the market.

However, the reaction of people towards various DETERGENT packs can be


Detergent packs Sachet Medium pack Family pack

Percentage 43 27 30




that people make. However, 43% consumers demand sachet packs. 30% consumers

demand family packs. 27% consumers demand medium packs.


graph:

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0

5

10

15

20

2530

35

40

45

percentage


demand of detergent packs

sachetmedium pack

family pack

7. Which shampoo u prefer to use?

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The reaction of people towards various SHAMPOO brands can be tabulated in the

following manner:

Brands Clinic plus Sunsilk

Head &

shoulders

Others


In the survey, that the researcher 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 other brands (EXCEPT CLINIC PLUS, SUNSILK, HEAD & SHOULDERS) with a

market share of 14%.


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0

5

10

15

20

25

30

35

percentage

brands

demand of shampoo

clinic plus

sunsilk

head & shouldersothers


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packs of SHAMPOO brands available in the market.

However, the reaction of people towards various SHAMPOO packs can be


Shampoo

packs

sachet Small pack Medium pack Family pack





that people make. However, 32% consumers demand SMALL PACK. 28% consumers

demand medium pack. 17% consumers demand large packs.


graph:

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0

5

1015

20

25

30

35

percentage


demand of shampoo packs

sachet

small pack

medium pack

large pack

9. Which biscuits u prefer to use?

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

following manner:

Brands Marie gold Good Day Parle G Others


In the survey, that the researcher conducted, it can easily be concluded that

GOOD DAY, the product of BRITANNIA holds a major market share of 38%. This is

followed by MARIE GOLD, another product of BRITANNIA which holds 24% of the

market share. After that, PARLE- G, the product of PARLE, holds 21% of the market

share. This is followed by other brands (EXCEPT MARIE GOLD, GOOD DAY,

PARLE- G) which hold a market share of 17%.


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0

5

10

15

20

25

30

35

40

percentage

brands

demand of biscuits

marie gold

good day

parle G

others

10. which hair oil u prefer to use?

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

following manner:

Brands Parachute Dabur Amla Dabur Vatika Others


In the survey, that the researcher 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, DABUR VATIKA) captures 15% of the market share.


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0

5

10

15

20

25

30

35

40

percentage

brands

demand of hair oil

parachute

dabur amla

dabur vatikaothers


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In order to determine the income pattern of the consumers, it was

necessary for the researcher 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


Hair oil packs Small pack Medium pack Large pack

Percentage 32 41 27




that people make. However, 41% consumers demand medium packs. After that, 32%

consumers demand small pack. 27% consumers demand large packs.


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0

5

10

1520

25

30

35

40

45

percentage


demand of packs of hair oil

small pack

medium pack

large pack

12. Which cream u prefer to use?

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The reaction of people towards various CREAM brands can be tabulated in the following

manner:

Brands Ponds Fair & lovely Ayur Others


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 14% of the total market

share.


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0

5

10

15

20

25

30

35

percentage

brands

demand of creams

ponds

fair & lovely

ayur

others

13. Which coffee u prefer to use?

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

manner:

Brands Bru Nestle Nescafe Others


In the survey, that the researcher 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.


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0

5

10

15

20

25

30

35

percenatge

brands

demand of coffee

bru

nestle

nescafe

others

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CONCLUSIONS

CONCLUSIONS

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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.

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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.

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LIMITATIONS

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LIMITATIONS

In attempt to make this project authentic and reliable, every possible aspect of the topic

was kept in mind. Nevertheless, despite of fact constraints were at play during the

formulation of this project. The main limitations are as follows:

Due to limitation of time only few people were selected for the study. So the

sample of consumers was not enough to generalize the findings of the study.

People were hesitant to disclose the true facts.

The chance of biased response cant be eliminated though all necessary steps were

taken to avoid the same.

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BIBLIOGRAPHY

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BIBLIOGRAPHY

Kearney, A T, CII Report, (2000)

Purba basu, research on living style of rural consumers, (2004), pg. no. 5-8.

Tognatta Pradeep, economic growth on agriculture sector, (2003), pg no. 6-10.

Aithal K Rajesh, importance & growth of rural markets, (2004), pg no. 8-12.

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.upgov.nic.in/upinfo/census01/cen01-1.htm

http://www.naukrihub.com/india/fmcg/overview/

http://www.naukrihub.com/india/fmcg/

http://www.naukrihub.com/india/fmcg/consumer-class/

http://www.naukrihub.com/india/fmcg/consumer- class/income/

http://www.naukrihub.com/india/fmcg/consumer-class/socio-economic/

http://www.naukrihub.com/india/fmcg/consumer-class/age/

http://www.naukrihub.com/india/fmcg/consumer-class/geography/
http://www.naukrihub.com/india/fmcg/overview/http://www.naukrihub.com/india/fmcg/http://www.naukrihub.com/india/fmcg/consumer-class/http://www.naukrihub.com/india/fmcg/consumer-%20class/income/http://www.naukrihub.com/india/fmcg/consumer-class/socio-economic/http://www.naukrihub.com/india/fmcg/consumer-class/age/http://www.naukrihub.com/india/fmcg/consumer-class/geography/http://www.naukrihub.com/india/fmcg/overview/http://www.naukrihub.com/india/fmcg/http://www.naukrihub.com/india/fmcg/consumer-class/http://www.naukrihub.com/india/fmcg/consumer-%20class/income/http://www.naukrihub.com/india/fmcg/consumer-class/socio-economic/http://www.naukrihub.com/india/fmcg/consumer-class/age/http://www.naukrihub.com/india/fmcg/consumer-class/geography/

fmcgfinal

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