Online Branding in Fmcg Sector

7/31/2019 Online Branding in Fmcg Sector

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Introduction

Fast Moving Consumer Goods (FMCG) or Consumer packaged goods areproducts that are sold quickly at a relatively low cost. The examples include

non-durable goods such as soft drinks, toiletries and grocery items. Though theprofit made on FMCG product is relatively small, they generally sell in largequantities, so the cumulative profit on FMCG products can be substantial. AConsumer usually spends a minimum effort while purchasing. However muchof marketing activities have evolved from this class of products, whereconsumer show low involvement, get wider choice and allured by a host of inducement.

The term FMCG refers to those goods that are generally used up or replacedover a short period of time. Some FMCG products are highly perishable likemeat, fruit, and vegetables, baked goods and dairy products. Some FMCGproducts have high turnover rates like alcohol, pre-packaged foods, toiletries,soft drinks and cleaning products.

FMCG Sector is an ever growing and booming sector in India. Fast MovingConsumer Goods (FMCG) are popularly known as consumer packaged goods.The most common products of FMCG are Soap, Detergent, Shampoo, ToothPaste, Shaving Products, Shoes Polish, Packaged Food Stuff, Householdaccessories, and extended to certain electronic goods. The consumption of FMCG products are very frequently.

Each Household expands a major portion of their income on FMCG products.Therefore the money circulation in this sector is very high, numbers of productsare very big and also the competition is very high in this sector.

FMCG Sector is the fourth largest sector in the economy and createsemployment for more than 3 million people. The total FMCG Market is inexcess of R. 85,000 Crores. It is currently growing at double digit growth rateand is expected to maintain a high growth rate.

Based on the prime factor behind their buying, fast moving consumergoods can be further subdivided into three categories:

Characteristics Type of ProductConvenience Shopping Specialty

Examples Grocery Items Fashion Item, Appliances, Fancy


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Clothing GoodsMajor Motive Easy availability Spend Effort to

choose the item of personal taste

Make longdeliberationsbefore making the

final selection of brandKnowledge priorto purchase

High medium Low

Effort spend toacquire products

minimal moderate As much asnecessary

Frequency of purchase

regular Season/occasion varies

Willingness to

acceptsubstitutes

high moderate none

Buying behavior Low informationsearch

Comparing optionto acquire bestwithin budget

Intensiveconsultationbefore actualpurchase

Staples: these are those goods that consumers purchase on a regular basis such

as a toilet soap, detergent, toothpaste, sauce and biscuits etc. a buyer purchasesuch goods when stocks reach a critical level.

Impulse goods: these are those goods that are purchased without any planningor search effort. These goods are usually procured due to external stimulus.Such as chocolates, Soft drink, and potato chips etc. So these products aredisplayed in the Kirana store because buyer may not have thought of buyingitem until spotting them.

Emergency Goods: These are purchased when that particular need arises Suchas umbrella or pullovers. The need for umbrella arises during rainy season andcustomer buy umbrella.

Characteristics of FMCGs Product

From Consumers Perspectiv e: An FMCG is characterized by a few distinctfactors. As it is clear from the name fast moving, FMCG has a low shelf life. Apart from this these are other characteristics of FMCG products.


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Frequent purchase: as it is clear from the name itself, FMCG goods arepurchased frequently by the consumers. Such as salt, soap etc it is aninexpensive product and is also available in almost all the shops aroundhouse.Low involvement: FMCGs are low involvement goods by their nature.When a consumer goes into a shop to purchase salt or a bottle of tomatoketchup, the consumer rarely makes an effort to choose the item.Generally if the brand a consumer asks for not be available, in most casesthe consumer will take whatever is offered in that place. There is anotherfactor which works in this direction is that there is usually a very largevariety of options available in this product range. So if the prefer brand is

not available, the consumer still has a large choice.Exception is everywhere, so a few exceptions is here also to this rule.

Products like personal hygiene products, cigarettes etc. although satisfyingall the other criteria of FMCGs but Shows a high level of brand loyalty. Forexample when a consumer gets used to a particular brand of shampoo,consumers do not easily accept any other brand.

Low Price: FMCGs Products are generally low priced product. A

consumer may go for an option to be high priced for a popular brandname. For an example, the most expensive toilet soap may cost Rs. 50.The goods such as soaps, detergents, potato wafers, tea are high volumeproducts with a wide potential market base. Due to low price FMCGsproducts are fall into low involvement category. This is the reason whypeople shows less interest while purchasing these products.

From the Marketers Perspective

Low Contribution Margin: because of high volume and cut throatcompetition, FMCGs products are generally sold low prices which arevery close to their production costs. Therefore the margin offers fordealer/ distributors are low. Due to intense competitions, marketer setsprices as low as possible and ensures turnover through large volume salesand quick disposal of stock.

High Volumes: the FMCG market is characterized by high volumes. Foran example a medium sized family uses two or three soaps in a month. If


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the number is multiplied by the no. of such family using the name soapthroughout the country, it will be a very large number. This phenomenonis noticed for FMCGs products like toothpaste, biscuits, soap etc.therefore these goods are manufactures in very large volumes.High Stock Turnover: Other characteristic of FMCG is that they have ahigh stock turn over. The FMCG products are bought frequently and atregular intervals. These goods have a short span of life. Thereforeshopkeepers are willing to trade in these goods more readily because theyfind a high stock turn over which allows them to rotate their capital in amonth or so.Extensive Distribution Network: The other characteristics of FMCG

market is extensive distribution networks. Consumer preferences in thisproduct are not rigid. A consumer may ask for any brand that he has justseen in an advertisement or the friends told him. Usually a buyer asks fora brand and the brand is not available in stock at that shop, he might bepurchase some other brand due to low involvement in this productsegment. A buyer may purchase a brand given by shopkeeper only. Inother words we can say that the brand loyalty is not very prevalent amonga large section of market. In the case of impulse goods consumer will

generally require the product only on sight. So it becomes necessary forcompany to make sure that their product is well distributed in the market.For this a FMCG companies always use extensive distribution channel toreach their product at customer hand before their competitors.

SWOT ANALYSIS

MAJOR SEGMENT OF FMCG INDUSTRIES

Household Care

Personal Wash:- this segment of FMCG can be divided into three sub segment :Premium, Economy & Popular. The penetration level of soaps is approx. 92percent and it is available in 5 million retail stores, in which 75 percent are inthe rural areas. HUL is the leader in this segment with market share of 53

percent. Godrej is at second position with a market share of 10 percent. Thetotal market size of personal wash is estimated to be around Rs. 8300 Cr.


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Growth in rural demand is expected to increase due to increase in disposableincomes, they are moving up towards premium products.

Detergent: there is high degree of competition in this segment. The penetration

level is also high. With rapid urbanization, the demand for small pack size andsachets is increasing day by day basically in the rural areas. Due to whichregional & small players are dominating in the market. These unorganizedplayers have a major share of the total volume of this market. The size of thismarket is estimated to be Rs. 12000 Cr. In washing Powder segment, HUL isthe leader with 38 percent market share. Other major players are Henkel,proctor & gamble, and Nirma.

Personal Care

Hair Care:- the hair care market is estimated to be around Rs. 3800 Cr in India.This market can be segmented in to shampoos, hair oil, hair gels, and haircolorants & conditioners. Marico dominant in the hair oil segment with amarket share of 33 percent whereas Dabur has second position with a marketshare of 17 percent.

Skin Care:- the skin care market is estimated at around Rs. 3400 Cr. This

market is at primary stage in India. With increase in disposable income,increasing standard of living, better product & their availability, people arebecoming aware about personal grooming. Hindustan Unilever is the majorplayer of this segment with a market share of 54 percent. Cavinkare occupiesthe second place with a market share of 12 percent and Godrej has a marketshare of 3 percent after Cavinkare.

Oral Care:- Oral Care market is estimated at around Rs. 3500 Cr. This marketcanbe segmented into- Toothbrushes ( 17% ), Tooth Powder (23%), and ToothPaste (60%). Colgate-Palmolive Dominated the Toothpowder/Toothpastesegment with a market share of 49 percent, and Hul has a second position witha market share of 30 Percent. In the toothpowder market Dabur & Colgates aremajor players.

Shampoos:- the Indian shampoo market is estimated at around Rs. 2700 Cr. Itcontributes the 40% of total shampoo sale. Again the HUL is the leader in thissegment with a market share of around 23 Percent. Today many variant of


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shampoos is available in this segment and this market is growing day by daybecause of availability of product in every range.

FOOD & BEVERAGE:

Food Segment:- The major players in this segment are HUL, Godrej, ITC,Nestle, Amul etc this category had 18 major brand giving tough competition toeach other and the market size is around to be Rs. 4600 Cr. Innovation such asready to eat product is seen in recent years.

Coffee:- The indian beverage industry faces over supply in segment like coffeeand tea. More than 50 percent of market share is in unacked. The major playerare Nestle, Tata Tea and HUL in this segment.

Tea:- The major market share in this segment is dominated by unorganizedplayers. More than 50 percent market share is capture by them. HUL and TataTea are leading brand in this segment.

Growth Prospect

Large Market:

India is second largestpopulated country in thisworld with a population of more than 1.150 Billions andaccording to estimates by 2030india total population will bearound 1.450 Billion and india

will be the largest populatedcountry in this world. AsFMCG products are directlyrelated to population soFMCG industry is expected tomaintain a robust growth rate.

CHANGING PROFILE AND


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MIND SET OF CONSUMER

As we can see that the consumer profile and mind sets are changing. They arelooking at Money For Value rather than Value For Money. The y are willing

to pay for good products and brands because of rising disposable income andchanging lifestyles etc. we have seen a sharp increase in the sales of packagedwater and water purifier in recent years which is a sign of that consumers areswitching from economy to premium products.

Spending Pattern

an increase in spending pattern has seen in Indian FMCG market. And thisincrease is seen not only in urban areas as well as rural area also. an increases in

disposable income of household has leads to growth rate in FMCG goods.

FMCG- Evolution

1950s -80s

Low investment in FMCG sectorConsumer had low purchasing power.Government emphasis was on small scale sector.Bid companied like HUL focused on urban market only

Post LiberlizationEntry of Multinational Companies as restrictions are lifted.Company focus shifted to getting the rural consumer first because of ahuge untapped market.Some big companies like Nestle still focused on urban areas.Market was hit by sachets which earn a huge success in rural areas as thepeople were not willing to pay a big amount at a time.

Nirma entered in the market and change the focus to value for moneyin the 70s Mushrooming of regional brandPost liberalization Jyoti laboratories, Ghari detergent and aanchortoothpaste giving the nation-wide brands a run for their money.

Hindustan Unilever


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Hindustan Unilever Limited(HUL) is the largest consumer goods company inIndia. Its headquarter in Mumbai, Maharastra. It is owned by the Unileverwhich is a British-Dutch Company with 52% majority stake in this company.

In 1931, Unilever set up its first Indian subsidiary named Hindustan VanaspatiManufacturing Company, followed by Lever brothers India Limited(1933) andunited traders limited(1935). These three companies merged and formed acompany named HUL in November 1956. The company was renamed asHindustan unilever limited in june 2007.

It has a distribution network of over 2 million retail outlets across India and itsproducts are available in over 6.4 million outlets in the country. What anextensive distribution network it has. According to a Nielsens survey report, 2out of 3 Indian uses HUL products.

HUL is the market leader in Indian Consumer Products. Its presence in over 20consumer categories such as tea, soap, shampoos, detergent etc. over 700million Indian consumers use HUL products. Seventeen of HULs brands gotplace In ACNielsen Brand Equity list of 100 Most Trusted Brands AnnualSurvey (2011).

PRODUCTSCompany own 35 major Indian brands. Its brands Includes:

Homecare Brand

Active Wheel DetergentComfort Fabric SoftenersCif Cream CleanerRin Detergent and bleachDomex disinfectant/toilet cleanerSunlight detergent and colour careVim dishwashSurf Excel detergent and Gentle wash

Food BrandBru coffeeAnnapurna Salt and aataLipton TeaBrook Bond Tea( Taj mahal, Taaza, Red Label, 3 Roses)


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Kissan squashes, ketchups, juices & jamsKwality Walls ice creamKnorr soups & meal makers and soupy noodlesModern Bread, ready to eat chapattis and other bakery items

Personal Care BrndsAxe Deodorant and after shaving lotionBreeze Bauty SopAviance Beauty SolutionsLEVER Ayush Therapy ayurvadic health care and personal care productsClear anti-dandruff hair productsClose up tooth paste

Denim shaving ProductsClinic Plus Shampoo and oilDove bar and skin cleansing, haircare range, lotions, creams, andDeodorantsHamamLifebuoy soaps and handwash rangeDenim Shaving products

Lakme beauty produts and salonsFair & Lovely- fairness productsLiril SoapPears SoapLux SoapPepsodent toothpasteRexona SoapSure anti-perspirantPonds talcs and creams Sunsilk shampooVaseline petroleum jelly skin care lotions


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INTRODUCTION OF NESTLE INDIA

Nestle S.A. is the largest food and nutrition company in the world. It wasfounded in Vevey, Switzerland. It came into existence with the merger of Anglo-Swiss milk company. Anglo-Swiss company was established in 1867 bytwo brothers George Page and Charles Page. Its first product was Farine LacteeNestle formulated by Henri Nestle to provide and improved infant nutrition.Today the company is operating its business in 86 countries around the worldand nearly 283,000 people are working in Nestle.

Nestle India is a subsidiary of Nestle S.A. of Switzerland. It was started withseven factories and a large number of co-packers. Nestle India is a vibrantcompany that provides global standards products to Indian consumers. NestleIndia is committed to long term sustainable growth and satisfaction of shareholders.

The honesty, integrity and fairness in all aspects of its business is the beauty of Nestle India. Company has earned trust and respect from the every area of society, where it operated its business. The Nestle India is most respected

companies and amongst the top wealth creators of India.


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The company continuously focuses its effort to better understand the changinglife styles of Indian people and fulfill Indian customer needs to provide its widerange of products. The culture of innovation and renovation within the companyand freedom to access the Nestle Groups technology and extensive researchand development facilities, gives it a distinct advantage in these efforts. It helpsthe company to create value that can be useful over the long term by offeringconsumers a wide range of high quality safe products at affordable prices.

HISTORY OF NESTLE INDIA

The relationship of India with Nestle started in 1912, When India started itsbusiness with Nestle Anglo-Swiss condensed milk company limited, importingand selling finished products in the Indian market.

After the independence in 1947, When the Indian government created economicpolicies and emphasized the need for local production, Nestle responded toIndians aspiration very well and set up its first factory in 1961 at Mogra(Punjab) was followed soon after by set up its second plant in 1967 at (ChalodiTamilnadu). Then after, Nestle India set up two factories first in 1989 atNanjangud (Karnataka) and second in 1993 at Samalkha (Haryana). This wassucceeded by the starting of two more factories in 1995 and 1997 at Ponda andBicholim (Goa) respectively. The seventh factory was set up in 2006 atPantnagar (uttarakhand).

PRODUCTS OF NESTLE INDIA

Nestle is a very big company. Nestle has 6000 brands with a wide range of product. Nestle India manufactures product of international standard underinternationally famous brand names such as;


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Dabur India Limited is the fourth largest FMCG company in India withrevenues of US$ 1 bilion and market capitalization of US$ 4 billion. It has built


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on a legacy of quality and expertise of over 125 years. Dabur operates inproduct categories like oral care, Hair care, Health care, Home care, Skin Care& foods.

Leading consumer goods company with a turnover of Rs. 5283 crores(FY(12) in India.

It has 17 ultra-modern manufacturing units spread over the globe. It has 2 major strategic business unit- consumer care business and

Internation business Division. It has 2 subsidiary group companies- Dabur international and NewU and

several step down subsidiary like Dabur Egypt pvt lts, Dabur Nepal pvtlta, Asian comsumer care Pakistan, Asian consumer care Bangladesh,

naturelle LLC ras al khaimah uae, afraican consumer care Nigeria,weilfield international uae, and jaquline inc. usa

Its product marketed in over 60 countries

Proctor and Gamble is one of the largest and among the fastest growingconsumer goods companies in India. It was established in 1964. It has over 650million consumers in india. Its presence in the beauty and grooming segment,health & well being segment as well as the house hold care segment with trustedbrands like Vicks, Tide, Ariel, Olay, Whisper, Gillette, Pampers, Ambipur,Pantene, Head & shoulder, Oral-B etc. it has five plants in India and over ninecontract manufacturing.

Brands of Proctor and Gamble

Head & ShoulderAmbiPurArielDuracellGilletteOlayOral-BPampers

PanteneTide


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VicksWellWhisper

ITC limited is an Indianpublic conglomeratecompany. Itsheadquartered in Kolkata.It has four segments:FMCG, Hotels,Paperboards, Paper &Packaging, and AgricultureProducts. Its annualturnover is approx. $7billion and has a marketcapitalization of over $33billion.

Over the last few years, ITC has rapidly scaled up presence in its newer FMCGbusinesses comprising branded Packaged foods, Education and StationaryProducts, Lifestyle Retailing , Personal Care Products, Incense Sticks (Agarbatti ) and Safety Matches with segment revenues growing at animpressive compound annual growth rate of 38% during the last 5 years.

Gujarat Cooperativ e Milk Marketing Federation Ltd.(GCMMF) is indiaslargest food product marketing organization with annual turn over of US$ 2.5billion(2011-12). It is the apex organization of the dairy cooperatives of Gujarat, Popularly known as AMUL. It operates through 47 sales offices andhas an extensive dealer network of approx. 5000 dealers and 10 lakhs retailers.


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It has one of the largest networks in India. Its product range comprises milk,milk powder, ghee, health beverage, pizza chesse, chesse, butter, chocolates,paneer, ice-cream, and traditional indian sweets etc.


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Cadbury is a confectionery company. It is owned by Kraft Foods and is thesecond largest confectionery company in the world after MARS incorporated.

Cadbury operated in more than 50 companied an d its headquarter is inUxbridge, London, England.

Cadbury India ltd. is a part of Kraft food and began its operation in 1948 byimporting chocolates. Today it has 6 companies owned- manufacturing at thane,Pune, Gwalior, Bangalore, Himachal Pradesh and Hyderabad. It has 4 salesoffices in Kolkata, Mumbai, New Delhi and Chennai. The corporate office of Cadbury India is in Mumbai. Cadbury India has a value market share of over70% in the chocolate category. In the milk food drink segment Bournvita is theleading malted food drink in the country.

Cadbury India operated in Five Categories

Beverages Chocolate Confectionery Candy Gum

BiscuitsSome of the key brands of Cadbury are Cadbury Dairy Milk, 5 Star, Bournvita,Bournville, Perk, Halls, Bubbaloo, Oreo, Tang, Eclairs, Gems, Celebrations.


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Marico is one of the Indias leading consumer product and Services Company inthe area of health and beauty. Its headquarter is in Mumbai. It operates itsbusiness in more than 25 countries across Asia and Africa. The companyturnover is Rs. 31.3 billion (approx. USD 695 Million) in 2010-11. It has a vastportfolio of brands like Saffola, Parachute, Nihar, Hare & Care, Manjal, Reviveand Mediker etc. in addition, the company has recently acquired the erstwhilepersonal care from Reckitt Benckiser and now own popular brands like Zatak,Livon, Set Wet and other personal care brands.

The story of Britannia reads almost like fairy tale. Once upon a time in 1982, abiscuit company was started a nondescript house in Calcutta (Kolkata) with aninitial investment of only Rs. 295. The company is known as Britannia today.

Britannia Industries Ltd. is an Indian food- products corporation. The companysheadquarter is in Kolkata. It is famous for its Britannia and Tiger brands of biscuits, which are very popular throughout the country. It has an estimatedmarket share of 38%.

Britannia brands reach more than 300 million homes across India

More than 40% of Britannia consumption happens on rural IndiaBritannia sells about 6 billion packs of biscuits products every yearBritannia products are available through more than 3 million stores acrosscountryBritannia has a leader presence in very frequently consuming Bakery &Dairy Categories.


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Asian Paints is an Indian chemicals company. Its head quarter is in Mumbai,India. It manufactures a large range of paints for decorative and industrial use.Asian Paints is Indias Largest Paint Company and Asias 3 rd Largest PaintCompany With a turnover of Rs, 96.32 billion. Asian Paints operates in 17countries and has 24 paint manufacturing facilities in the world. It has consumerin over 65 countries throughout the world.

Asian Paints manufactures and markets Industrial and decorative coatings.

Products and BrandsIn decorative paints it has four segment like Exterior wall Finishes, InteriorWall Finishes, Wood Finishes, and Enamels.

Industrial Coating: Protective coating, Floor Coating, Road Marking

Automotive: Body coating, Plastic Coating


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Prior to the arrival of internet, Branding was most closely associated withimages which evoked feelings and emotions associated with particular brand of products or category of products.

The term online has specific meaning in regard to computer technology andcommunications. It is the condition of being connected to a network of computers or other devices.

Online marketing is also known as internet marketing, web marketing or e-marketing. It is referred to as the marketing of products or services over theinternet.

Brand is a name or symbol that is commonly used to identify a company or itsproducts and distinguish them from their competitors. Branding is a type of marketing that helps a company to target their demographic audience. Onlinebranding then is exactly the same like developing a strategy to market to targetaudience over the internet. Company can target their audience through a varietyof different means including online advertisements, social media, onlineclassified ads and other internet methods.

Branding plays an integral part behind the success of a product whether it isonline or offline. In real life scenario, brand is the identity on the web anddifferentiate the product from their competitiors product.onine branding decidesthe perception of targeted audience towards their ecommerce store.

Branding online

A company can use following branding medium to communicate their messageto target audience.

Domain Name

Company domain name will be the name of their ecommerce store and used foreffective online branding strategy. Company should choose a name that isunique, easy to remember and highlights the tpe of products sold in theirecommerce store.

Logo


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When we think about any company, we are reminded of its logo beforeeverything else like apple, windows. An appealing logo creates a lastingimpression in the mind of consumers and has a global appeal. A meaningfullogo is always helpful in online branding. Many successful online business usedimages as their logo to communicate easier since consumer easily relate theseimages/logos.

Ecommerce Storefront

Visitors remember online stores by their shopping experience. Company shouldbuild unique shopping experience by using innovative website templates withspecial emphasis on important things and navigation, product display anddescription, self-explanatory images. It can become major differentiation factorin online marketing.

Tips for Online Branding

Be consistent

Online branding would require targeting visitors through multiple channels.Company should consistent in terms of their approach, their message, and theirtreatment given to a viewer through all these channels.

Appeal to the target market

Entire branding effort should be focused on a section of a large consumersegment. Company should communicate their message clearly and precisely.Their message should appeal to target audience and make them realize thebenefit of visiting their stores.

Be innovative

Innovation is a key word in marketing these days. We can see the innovation inits all concept. Here in branding also innovation is a key element to get attentionfrom visitors. Company should understand the likes and dislikes of their targetaudience before begin the work of online branding. Company should keep aclose eye on the behavior of their visitors. Online branding is a major factor,which will help company to convert their visitors into consumers.


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Online Advertising....The Indian Scenario

The share of India in online advertisement in world is almost negligible. But ithas a huge potential in developing countries like India Where, Internet users are

growing very fast. Indian Companies are also showing interest in this field.They have started promoting their products or services online and online saleseven.

Currently Finance Sector is most dominating sector in online advertising whichaccounted about 40% of total online advertisement in India. Some of the leadingcompanies from this sector are ICICI, HDFC, UTI, SBI and Citibank, WhereasFMCG Companies accounted for 20 % of the total online advertisement inIndia. Consumer Durables Company accounted for 15 % of total onlineadvertisement in India. Media sector accounted for 10% and rest 15% isoccupied by others.

In India most popular form of online advertising is banner advertising because itis easy to create, place and use. India has to cover a lot of grounds to reach thelevel of online advertisement as a country like U.S. There are many obstacles inthe growth of Indian online advertising like High cost, Low education,Psychological fears of IT, and low awareness level. Many Indian companies aredoubtful on the effectiveness of online advertisement.

40%

20%

15%

10%

15%

Current Scenario In Online AdvertisingFinanace FMCG Consumer Durables Media Others


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The IAMAI estimated in 2008 that Internet advertisement would grow at40% and will reach a value of Rs. 750 Crore by 2012. And according to areport of FICCI-PWC in March 2010 India has already crossed a figure of Rs. 950 Crores. It shows that how fast online advertising is increasing inIndia.

Building FMCG Brand through Internet Advertisement

Advertisers forecast that online will represent a growing share of their budgetover the next 2 years, especially in FMCG sectors. EIAA conducted a survey tounderstand the role of online advertising and attitudes towards the Internetamongst key advisers across Europe. They found that company already spentover 5% of their media budget online and 74% of respondent said that theinternet is an vital component of their advertising strategy. And according to theForecast of EIAA online as spend is to rise by over 65%.

The way Indian companies use internet for marketing their products

Most Indian companies are opening to marketing on the internet. Although thereis a low penetration of performance in these initiatives, there is also brand-centric communication across industries which do not gather many headlines.

The typical activities include:

Banner on Horizontal sites

Search Engine Marketing

Sponsorship of properties

Ad Network buys

Advertisement medium at a glance

The FMCG products used every day by everyone. That means there is a hugescope for the newcomers and there is a very healthy competition in this sector.The company tries to make huge profits and they are competing hard to itscompetitor to capture the more market share. As the number of competitors ishuge in the market the FMCG brands needs to have a credibility and trust. If theconsumer will not trust on the brand the other brand would take the position inless time. So FMCG use various practices to strengthen their brands. Followingare the some practices which are generally used by the FMCG companies.


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TV Advertisement

The FMCG companies spend a great portion of their advertisement budget onTV.

Print Media

Online Advertisement

The reason why FMCG should be marketed on Web

FMCG Companies need to market their products on the internet because theseare brands that rely on the relationships they have with their consumers. When aconsumer buys their favorite brand of any FMCG product it is because they feel

a familiarity with their chosen brand. It is a relationship based on trust anddeveloped out of years of quality delivery. The challenge for FMCG brands is todevelop and maintain this relationship with their market base and not let themstray to other.

According to Andy Taoushiani, MD Artifact Advertising and head of theArtifact Group, this is where they see marketing on the internet being vital forFMCG brands. Artifact Advertising's digital marketing company, ArtifactOnline, views the integration of online marketing activities into a typical FMCG

marketing mix as such:TV/Radio/Print- selling product to a mass audience that fits their demographic,driving the consumer to the store.In store marketing- grab the consumer at point of purchaseOnline Marketing- a tool to establish, rewards, and revitalized the relationshipto the consumers. Online marketing is a tool to encourage consumers to interactwith company and entrench their loyalty to the brand.

The Internet AdvantageAs on branding medium online advertisement is blessed with many uniquebenefits which have pushed marketers to look upon this medium as a potentialmedia in future. This can be classified as:


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Core BenefitsThe core benefits from online advertisement are unique and very criticalinfluential factor for the advertising decision.Interactive Approach

Context Sensitivity

Augmented Benefits

Cost EffecticeDynamic CustomizationImpact Measurement

Peripheral Benefits

Duration of exposureLow spillageData base collection

Creativity And Innovation

2. RESEARCH DESIGN

2.1 TYPE OF DESIGN

There are basically three types of designs:

1. Exploratory Research


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It helps to identify new problems. It helps in formulating a problem for developinghypothesis. Its basically informal research that we undertake to gain information onthe problem identified in the project.Its basically used in conditions like to solve problems, define terms, and to collect the

information.2. Descriptive ResearchIt helps to describe the characte ristics of a particular individual; group. Its basicallybased on the definition of the population. It basically answers questions related towho, what, were, when, why and how.It has to basically focus on key areas like- developing an objective, selecting themethod which will be used for collection of data, selecting a sample, collection of data, processing of data, analysis of data, and findings.IN OUR PROJECT WE HAVE USED DESCRIPTIVE RESEARCH.

3. Casual ResearchIn this type of research the researcher tests the hypothesis of casual relationshipbetween variables. As casual relationships are determined by use of experiments, anduse of other methods.

2.2 DATA COLLECTION FROM SECONDARY SOURCES

Secondary data basically includes the published sources which have been collectedoriginally from some other purpose.

Sources are internal company records, government publications, reports and journals,

trade professional and business associations. Internet, E-journals, Newspaper articles (The Times of India, Hindustan Times) and

Research journals were also quite helpful.

2.3 DATA COLLECTION FROM PRIMARY SOURCES

Primary data is basically that which is gathered for project at hand e.g. throughquestionnaire and interviews.

Primary data sources include company salesman. Middleman, consumers and

businessman, trade association executive, and other executives.Widely used methods of gathering Primary data:

1. Survey Method

Information gathered directly from the users either through personal interviews ormail questionnaire.

2. Observation Method

Research data is gathered through observing and recording their actions in amarketing situation. The technique is highly accurate. Its rather an expensivetechnique.

3. Experimental Method


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It involves carrying out a small scale trial solution to a problem, while at the sametime attempting to control all factors relevant to the problem. The main assumption isthat the test conditions are essentially the same as those that will be encountered laterwhen conclusions derived from the experiment are applied to broader marketing area.

4. Panel ResearchIn this respondents is contracted for more than one occasion and the informationobtained to find out if there has been any in their taste demand or they want anyspecial colour, size , quality, packaging of the product.

2.4 SCALING TECHNIQUES

SCALING

Scaling is an extension of measurement. It involves creating a continuum upon whichmeasured objects are located. It is a process of placing the respondents on a continuum withrespect to their attitude.

PRIMARY SCALES OF MEASUREMENT

1. NOMINAL SCALEA scale whose numbers serve only as labels or tags for identifying and classifyingobjects with a strict one to one correspondence between the number and the objects.Common example includes social security members.

2. ORDINAL SCALEA ranking scale in which numbers are assigned to objects to indicate the relativeextent to which some characteristic is possessed. Thus it is possible to determinewhether an object has more or less of a characteristic than some other object.Common example is quality rankings, ranking of teams in tournament.

3. INTERVAL SCALEA Scale in which the numbers are used to rate objects such that numerically equaldistances on the scale represent equal distances in the characteristic being measured.Common example is temperature scale.

4. RATIO SCALEThe highest scale. It allows the researcher to identify or classify objects, rank orderthe objects, and compare intervals or differences. It is also meaningful to computeratios of scale values.Common examples include height, weight and age.

COMPRISON OF SCALING TECHNIQUES

1. COMPARATIVE SCALESComparative scales involve the direct comparison of stimulus objects. For e.g.Respondents might be asked whether they prefer coke or pepsi.


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2. NON COMPARATIVE SCALESIt is referred to as monadic or metric scales; each object is scaled independently of theothers in the stimulus set.

SCALE EVALUATION1. RELIABILITY

Reliability refers to the extent to which a scale produces consistent results if repeated measurements are made.

2. VALIDITYValidity of a scale may be defined as the extent to which differences in observedscale scores reflect true differences among objects on the characteristics beingmeasured, rather than systematic or random error.

3. GENERALIZABILITYIt refers to the extent to which one can generalize from observations at hand to auniverse of generalizations.

In our project we had used nominal, ordinal scaling techniques. Along with these scalingtechniques we had used likert five point scales.

2.5 QUESTIONNAIRE DEVELOPMENT AND PRE TESTING

If one wants to know what type of dentifrice people use, what they think of, televisionscommercials, or why they buy particular brand. Thus the questionnaire method has come tobe more widely used of the two data collection method. Many consumers are familiar withthe telephone ca ller who greets them with we are making a survey and then proceeds themto ask a series of questions. Some interviews are conducted in person, others by telephoneand others by mail. Each of these has a special advantage, disadvantage and limitations. Thequestionnaire method has a number of pervasive advantages and disadvantages. Discussion of particular variations will be more meaningful if these characteristics of general method arebrought out first.

A questionnaire consists of list of questions to be asked from the respondents and the spaceprovided to record the responses. Questionnaires can be used for personal interviews, focusgroups, mails and telephonic interviews. The choice among this alternative is largelydetermined by the type of information to be obtained and by the type of respondents fromwhom it is to be obtained.

The common factor in all varieties of the questionnaire method is the reliance on verbalresponses to questions written or oral.

Questionnaire in our project consists of:


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1. Multiple choice questions.2. Dicthomus.3. Open ended.

MULTIPLE CHOICE QUESTIONS

Questions of this type offer the respondents an alternative to choose the right answer amongothers. It is faster, time saving and less biased. It also simplifies the tabulating process.

OPEN ENDED QUESTIONS

In this respondents are free to answer in their own words and express the idea they think arerelevant, such questions are good as first questions or opening questions. They introduce thesubject and obtain general reaction.

DICTHOMOUS

These are the questions that are Boolean in nature. These answers are straight forward andrespondents have to answer them in a straight way. That means answer can be either yes or no.

BRANCHING QUESTIONS

This is another kind of questions bu t we havent used this kind of questions in our questionnaire. From the name itself we can find that there will be a link between fewquestions. In this type of questions alignment of question is very important.

NEED FOR A QUESTIONNAIRE

1. To minimise the error for better analysis.2. To motivate the respondents to be cooperate in filling the questionnaire.3. Information is collected in the form of answers to the questions which helps ion the

further processing of the data.PROCESS INVOLVED IN QUESTIONNAIRE DESIGN

1. To be specific about the information which is needed to solve out the problem2. Selection of the type of the interviewing method which is suitable and which will be

convenient.3. Development of the questions which is to be included in the questionnaire.4. Question wording and the structure is basically decided.5. Pretesting of the questionnaire is done to find out the accuracy level of the

questionnaire and the responses which will be undertaken later.


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Pretesting was basically done to determine the effectiveness of our survey questionnaire as itwas necessary to pretest it before actually using it. So we did a pretesting of about 10questionnaires from our target group of consumers. As Pretesting helped us to determine thestrength and weaknesses of survey. A very important part of the questionnaire construction

process is its piloting known as pre testing . This involved testing the research instrument inconditions as similar as possible to the research which basically helped us a lot in the overallprocess and helped in the final analysis.

Pretest was conducted systematically, with potential respondents and using the same methodsof administration .Aim of testing questionnaire was to minimise measurement error . Itgenerated a lot of benefits as it reduced survey development time, reduced survey cost andImproved the quality of data collected.

2.6 SAMPLING TECHNIQUESample design is a definite plan of obtaining some items from the whole population. Thesample design used in this project is two states sampling that is cluster and convenience. Inthe probability sampling methods each item in the sample is chosen one at a time from acomplete list of universe elements. In market research practice it will sometime be moreexpedient to select clusters or groups of universe elements rather than to choose sample itemsindividually.

Sampling methods in which universe elements are chosen in groups rather than individuallyare called cluster sampling methods .They are widely used in the sampling of human

populations. When no complete universe listing exist a type of sampling is called areasampling may be the only practically feasible form of probability sampling.

Steps included in sampling design process are: Target the population, designing the samplingframe, Selection of the sampling technique, Finding out the sample size and its execution.

SAMPLING METHODS

Sample design is a definite plan of obtaining some items from the whole population. Thesample design used in this project is two state sampling that is probability and non-

probability sampling and total sample size was 100.The sampling technique may be broadly classified as Non probability and Probability.

Nonprobability sampling depends on the personal judgement of the researcher rather thanchance to select sample element. The researcher can decide what elements to include in thesample. A core characteristic of non-probability sampling techniques is that samples areselected based on the subjective judgement of the researcher, rather than random selection.Types of Non probability sampling techniques are;

Convenience sampling - Members of the population are chosen based on theirrelative ease of access. To sample friends, co-workers, or shoppers at a single mall,


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are all examples of convenience sampling. ( WE HAD USED THIS SAMPLINGFOR OUR SURVEY)

Judgemental sampling -The researcher chooses the sample based on who they think would be appropriate for the study. This is used primarily when there are a limited

number of people that have expertise in the area being researched. Quota sampling -A quota is established (say 65% women) and researchers are free tochoose any respondent they wish as long as the quota is met.

Snowball sampling -The first respondent refers a friend. The friend also refers afriend, etc.

In our market research the sampling technique we have used is NON PROBABILITYsampling technique.

Probability sampling , sampling units are selected by chance. It is possible to pre specifyevery potential sample of a given size that could be drawn from the population, as well as the

probability of selecting each sample.

Types of probability sampling technique are;

Simple random sampling- Is selected so that all samples of the same size have anequal chance of being selected from the entire population.

Systematic sampling- The sample is chosen by selecting point and then pickingevery ninth element in succession from the sampling frame.

Stratified sampling- Involves selecting independent samples from a number of subpopulations, group or strata within the population. Great gains in efficiency are

sometimes possible from judicious stratification. Cluster sampling- Involves selecting the sample units in groups. For example, a

sample of telephone calls may be collected at by first taking a collection of telephonelines and collecting all the calls on the sampled lines.

SAMPLING IN OUR PROJECT

A) SAMPLING TECHNIQUENon probability sampling (In which each element in the population does not have anequal chance of getting selected.) Under this we used the convenience sampling as we didour survey in the places that were convenient for us like malls and other public places.

B) SAMPLE UNITPeople who buy chocolates available in retail outlets and superstores.

C) SAMPLE SIZE100 respondents were taken as sample size.

D) METHODDirect interview through questionnaire.

E) DATA ANALYSIS METHOD


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Graphical method

F) AREA OF SURVEYDelhi and NCR

2.7 FIELD WORK

a) Questionnaire was prepared keeping in mind the objectives of research in mind.b) Questions were asked to respondents as regards to their willingness to purchase

chocolates.

c)

The help of questionnaires conducted direct interviews in order to get accurateinformation.d) We visited many respondents and asked them their real likings about any

chocolates and got an idea how a chocolate should be?e) It is really a Herculean task to understand consumer behaviour as the definition

suggests Consumer behaviour is a physical activity as well as decision processindividuals engaged in when evaluating, acquiring, using and disposing goods andservices.

f) Each and every questionnaire was filled personally by the respondent.

http://books.google.co.in/books?id=ESJzaCJE3fQC&pg=PA26&dq=what+is+f

mcg&q=what+is+fmcg&hl=en#v=snippet&q=what%20is%20fmcg&f=false
http://books.google.co.in/books?id=ESJzaCJE3fQC&pg=PA26&dq=what+is+fmcg&q=what+is+fmcg&hl=en#v=snippet&q=what%20is%20fmcg&f=falsehttp://books.google.co.in/books?id=ESJzaCJE3fQC&pg=PA26&dq=what+is+fmcg&q=what+is+fmcg&hl=en#v=snippet&q=what%20is%20fmcg&f=falsehttp://books.google.co.in/books?id=ESJzaCJE3fQC&pg=PA26&dq=what+is+fmcg&q=what+is+fmcg&hl=en#v=snippet&q=what%20is%20fmcg&f=falsehttp://books.google.co.in/books?id=ESJzaCJE3fQC&pg=PA26&dq=what+is+fmcg&q=what+is+fmcg&hl=en#v=snippet&q=what%20is%20fmcg&f=false


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http://en.wikipedia.org/wiki/Hindustan_Unilever_Limited

http://www.hul.co.in/aboutus/ourhistory/

http://www.dabur.com/default.aspx

http://www.nestle.co.in/nestle_india_landing.aspx

http://en.wikipedia.org/wiki/ITC_Limited

http://www.itcportal.com/itc-business/fmcg/index.aspx

http://www.pg.com/en_IN/company/pg-india.shtml

http://www.amul.com/m/organisation

http://www.cadburyindia.com/in/en/About/ourbusinessinIndia.aspx

http://en.wikipedia.org/wiki/Cadbury_India

http://www.marico.com/html/about/overview.php

http://en.wikipedia.org/wiki/Britannia_Industries

http://www.britannia.co.in/index.htm

http://www.startupdunia.com/india-mobile/india-online-advertising-market-worth-rs-250-crores-india-mobile-advertising-is-rs-40-crores-862
http://en.wikipedia.org/wiki/Hindustan_Unilever_Limitedhttp://en.wikipedia.org/wiki/Hindustan_Unilever_Limitedhttp://www.hul.co.in/aboutus/ourhistory/http://www.dabur.com/default.aspxhttp://www.dabur.com/default.aspxhttp://www.nestle.co.in/nestle_india_landing.aspxhttp://en.wikipedia.org/wiki/ITC_Limitedhttp://www.itcportal.com/itc-business/fmcg/index.aspxhttp://www.itcportal.com/itc-business/fmcg/index.aspxhttp://www.pg.com/en_IN/company/pg-india.shtmlhttp://www.amul.com/m/organisationhttp://www.amul.com/m/organisationhttp://www.cadburyindia.com/in/en/About/ourbusinessinIndia.aspxhttp://www.cadburyindia.com/in/en/About/ourbusinessinIndia.aspxhttp://en.wikipedia.org/wiki/Cadbury_Indiahttp://en.wikipedia.org/wiki/Cadbury_Indiahttp://www.marico.com/html/about/overview.phphttp://www.marico.com/html/about/overview.phphttp://en.wikipedia.org/wiki/Britannia_Industrieshttp://en.wikipedia.org/wiki/Britannia_Industrieshttp://www.britannia.co.in/index.htmhttp://www.startupdunia.com/india-mobile/india-online-advertising-market-worth-rs-250-crores-india-mobile-advertising-is-rs-40-crores-862http://www.startupdunia.com/india-mobile/india-online-advertising-market-worth-rs-250-crores-india-mobile-advertising-is-rs-40-crores-862http://www.startupdunia.com/india-mobile/india-online-advertising-market-worth-rs-250-crores-india-mobile-advertising-is-rs-40-crores-862http://www.startupdunia.com/india-mobile/india-online-advertising-market-worth-rs-250-crores-india-mobile-advertising-is-rs-40-crores-862http://www.startupdunia.com/india-mobile/india-online-advertising-market-worth-rs-250-crores-india-mobile-advertising-is-rs-40-crores-862http://www.britannia.co.in/index.htmhttp://en.wikipedia.org/wiki/Britannia_Industrieshttp://www.marico.com/html/about/overview.phphttp://en.wikipedia.org/wiki/Cadbury_Indiahttp://www.cadburyindia.com/in/en/About/ourbusinessinIndia.aspxhttp://www.amul.com/m/organisationhttp://www.pg.com/en_IN/company/pg-india.shtmlhttp://www.itcportal.com/itc-business/fmcg/index.aspxhttp://en.wikipedia.org/wiki/ITC_Limitedhttp://www.nestle.co.in/nestle_india_landing.aspxhttp://www.dabur.com/default.aspxhttp://www.hul.co.in/aboutus/ourhistory/http://en.wikipedia.org/wiki/Hindustan_Unilever_Limited

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