A PROJECT REPORT

ON

CUSTOMER SATISFACTION IN FMCG INDUSTRY

BACHELOR OF BUSINESS ADMINISTRATION (BATCH: 2011-14)

SUBMITTED TO, SUBMITTED BY,

Mr. CHANDRA SHEKHAR SINGH SUBHASH CHANDRA VISHWAKARMA

Lecturer B.B.A 6th Semester’

SMS Varanasi Roll no. --114749

DECLARATION

I Subhash Chandra Vishwakarma, a student of BBA 6th Semester of “school of management Sciences” VARANASI hereby declare that all the information is correct in accordance with the sample size. All the statistical diagrams are derived from the information

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

(Subhash Chandra Vishwakarma)

BBA- VI SEMESTER

ROLL NO- 114749

ACKNOWLEDGEMENT

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

This Report is an outcome of the sincere support and guidance of my mentor Mr. Chandra Shekhar Singh (Lecturer, SMS Varanasi) who constantly encouraged and helped me to complete this report successfully.

I am also grateful to my parents without whose guidance, & support this survey couldn’t have been carried out.Last but not the least, I would offer my special thanks to all those people who have spared their precious time in filling

(Subhash Chandra Vishwakarma)

BBA- VI SEMESTER

ROLL NO- 114749

CONTENTS

1. INTRODUCTION

1.1 OBJECTIVES

1.2 NEED AND PURPOSE OF THE STUDY

1.3 SCOPE OF THE STUDY

1.4 LIMITATIONS

2. RESEARCH METHODOLOGY

3. DATA ANALYSIS

4. FINDINGS

5. RECOMMENDATIONS

6. CONCLUSION

7. QUESTIONNAIRE (ENCLOSED)

INTRODUCTION

Introduction OF FMCG industry

Products which have a quick turnover, and

relatively low cost are known as Fast

Moving Consumer Goods (FMCG). FMCG

products are those that get replaced within

a year. Examples of FMCG generally include

a wide range of frequently purchased

consumer products such as toiletries, soap,

cosmetics, tooth cleaning products, shaving

products and detergents, as well

as other non-durables such as glassware,

bulbs, batteries, paper products, and plastic

goods. FMCG may also include

pharmaceuticals,consumer

electronics,packaged food products, soft

drinks, tissue paper, and chocolate bars.

Indias FMCG sector is the fourth largest

sector in the economy and creates

employment for more than three million

people in downstream activities. Its

principal constituents are Household Care,

Personal Care and Food & Beverages. The

total FMCG market is in excess of Rs. 85,000

Crores. It is currently growing at double

digit growth rate and is expected to

maintain a high growth rate. FMCG Industry

is characterized by a well established

distribution network, low penetration

levels, low operating cost, lower per capita

consumption and intense competition

between the organized and unorganized

segments.

INTRODUCTION

Customer satisfaction survey has been

conducted on Fast Moving Consumer Goods

(FMCG) industry; considering two significant

product categories in that industry; namely,

oral care and personal wash (soaps)

segments. Such a survey is very important as

customer satisfaction can impact every aspect

of the business from earnings to stock profits.

The survey was conducted to encourage

clients and customers to give vital feedback

on issues that can affect customer retention,

including:

Overall satisfaction

Product-specific satisfaction

Brand perception

Pricing

Timeliness of delivery

Customer service satisfaction

Returns and exchange process satisfaction

Interest in new products and services

It would help the companies involved in

FMCG industry to optimize the relationship

with their clients/ customers.

The objectives of this survey are:

1. Measure customer satisfaction levels

2. Improve customer retention

3. Gauge interest in new products and

service offerings

4. Pinpoint areas for process

improvement

5. Get actionable feedback at an affordable

price.

NEED AND PURPOSE OF THE

STUDY:

The purpose of the study is to measure customer

perceptions of how well the FMCG industry as a whole

delivers on the critical success factors and dimensions

of the business. These usually include factors like

service promptness, staff responsiveness, and

understanding of the customer's problem. Customer

loyalty and satisfaction levels can be determined by

analyzing the data gathered from our survey questions.

discover new product and service development

ideas;

determine what makes customers loyal;

Understand customer issues and relationships of

industry with the consumers.

This study on customer satisfaction in FMCG industry

can assist decision-makers of FMCG companies in

developing strategies to achieve the all-important goal

of gaining and retaining customers. Results can play a

key role in identifying areas of the business that

require corrective action and improvement. It also

identifies areas that can be leveraged to achieve

business growth and expansion.

1. Importance for Small Business: Small and new

businesses can gain repeat customers.

2. Importance for Medium to Large Businesses: Larger

businesses can monitor customer satisfaction levels.

Larger businesses have levels of managers and

executives who usually don't have direct, one-on-one

contact with customers. Survey provides data and

feedback to monitor customer satisfaction levels and

assess employee performance in fulfilling management

objectives and goals. Survey targets specific customers

by demographics, by geography, marketplace needs

and more.

3. Importance to Customers: Results can provide

insights to increase business--in good and bad times.

Most customers actually desire a long-term

relationship with a brand, product or service provider.

Customer satisfaction survey provides a platform for

them to do so. Their responses, whether good or bad,

provide a wealth of information and feedback to utilize

in developing, retooling and improving the customer

experience with brands, products and services.

Risks of Not Conducting

Surveys:

Some business decision-makers hold the opinion that

surveys only attract disgruntled customers. That

attitude could prove risky. It opts to rely on gut and

intuition without actual, quantitative and qualitative

information directly from customers. The result could

mean unrealized growth, missed opportunities and loss

of customers to competitors.

SCOPE OF THE STUDY:

It would help in understanding the extent of

satisfaction of consumers with the FMCG industry and

its multitude of segments. It can build a foundation on

which customer relationships can be built upon. The

study would be covering mostly the area of southern

India and customer satisfaction and loyalty of south

Indians over FMCG products. The study would concern

the opinions of customers over a minimum period of 1

month.

LIMITATIONS OF THE STUDY

Since the FMCG industry is a big industry harboring

numerous segments and thousands of products, it is

not possible to conduct survey on the whole FMCG

industry within a limited period of time. 2-3 product

categories may be taken. Limited time and lack of

awareness of other efficient data gathering techniques

and tools for analysis have limited the accuracy of our

findings in this survey.

RESEARCH METHODOLOGY

Research have been carried out by collecting data

directly, i.e; from the primary sources of data

because data collected in this manner is unique and

original. While collecting the primary data, we have

used the questionnaire method which is a popular

means of collecting data. We have used the

questionnaire in its own right as well as a basis for

interviewing and telephone survey. This method

was adopted as it was relatively cheaper, covers a

wider geographical area and respondent can

consider his/her responses before answering.

The questionnaire contains 17questions; Out of

which first 6 conveys personal information & rest

are regarding consumer’s opinion on FMCG industry.

It has a combination of both open-end and close-end

questions. Two are open-end questions & 9 are

closed- end questions. Except the final

2(unstructured), rest of the questions are structured

questions. Attitude questions have also been

employed. Semantic differential scale and likeart

scales have been used in the questionnaire to gauge

the customer response on a scale of 1-10 and 1-5.

Probability method of sampling has been used.

Numbers of the collected samples are 50.We have

considered the oral care category& personal wash

(soap) category while studying the FMCG industry.

For this purpose we have collected 25 samples from

oral care & 25 from personal wash (soaps) category.

Samples have been collected from diverse areas

around South India (Andhra Pradesh & Kerala) &

from different age groups & from housewife, daily

workers, retailers, professional workers, retired

people, students & so on.

Data analysis

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

Customer satisfactory survey on personal wash (soaps) products

1. Age group of the sample

Age group No.18-24 1025-34 1735-44 245-54 655-64 4

65 and above 1

2. Level of Education

Level of Education Number

Higher Secondary Or Below 7

Senior Secondary 8

Graduation 11

Post Graduation 8

Professional Course 6

3. Employment status

Employment Status Number

Govt Service 10

Private Service 13

Business 4

Self Employed 3

Retired 2

Student 8

4. Household Income Per Month

Household Income Per Month No.

Below 5000 5

5000-10,000 18

10,000-50,000 14

50,000-1,00,000 2

1,00,000 and above 1

5. Usage of product (soap)

Brand Percentage

Lux 37.5

Lifeboy 15

Dove 15

Pears 17.5

Medimix 5

Santoor 2.5

Other 7.5

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

How Came to Know About the Product No.

Friends/Relative 4

Television 26

News Paper 5

Magazine 2

Internet/ Websites 3

Other 0

7. Satisfactory Level of the Product

satisfactory level

Very Satisfied Satisfied Neutral

Dissatisfied

Very Dissatisfied

Lux 14 1 0 0 0

Lifeboy 5 1 0 0 0

Dove 6 0 0 0 0

Pears 7 0 0 0 0

Medimix 1 1 0 0 0

Santoor 1 0 0 0 0

Other 2 0 1 0 0

8.Order of Importance when Buying Soap

Order of Importance When Buying Soap No.

Quality 21

Price 7

Quantity 5

Brand Name 3

Familiarity 4

Customer Satisfaction Survey on Oral (tooth paste) Care.

1.Age of Respondents

Age of respondents No.

18-24 15

25-34 7

35-44 8

45-54 9

55-64 1

2.Level of Education

Level of education of respondents No.

Higher secondary or below 2

Senior secondary 5

Graduation 16

Post graduation 9

Professional course 8

3. Employment Status

Employment status No.

Govt service 7

Private service 12

Business 4

Self empioyed 3

Retired 1

Student 13

4. Household Income Per Month

Household income per month No.

Below 5000 5

5000-10000 21

10000-50000 10

50000-100000 4

100000 and above 0

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

How did they came to know No

Friends/relative 6

Television 29

Newspaper 3

Magazine 1

Internet/Website 1

Other 0

6. Satisfaction Level

satisfaction level

Very Satisfied Satisfied Neutral

Dissatisfied

Very Dissatisfied

Colgate 18 0 0 0 0

Pepsodent 5 1 0 0 0

Close-up 11 0 1 0 0

Dabur 1 0 1 0 0

Babool 0 1 0 0 0

Other 0 0 1 0 0

7. Product Users (tooth paste)

Users No.

Colgate 18

Pepsodent 6

Close-up 12

Dabur 2

Babool 1

Other 1

Findings:

From the above Survey we found that most of the

customers are quality oriented. Their first importance

in any product is quality, after that price and third

importance is quantity, fourth one is brand name, and

last one is familiarity. It means customers are more

aware of about quality not to the brand name and they

are also price conscious.

The main source of awareness is television. Most of

the people are getting familiar to the product through

television.

We find that more than 37% peoples are using LUX,

15%- Lifebuoy, and Dov-15%, Madimix-5%, Santoor-

2.5, and other brand-7.5%. It means LUX is very

famous brand in middle (10000-50000 per month) and

lower middle class (5000-10000 per month) families.

We found that overall satisfaction level of Pears and

Dove is very high, 100% people are very satisfied. And

for Lux 93% people are very satisfied, and 7% satisfied.

And for Lifebuoy 83% people are very satisfied, 17%

are just satisfied.

We found that most of the users of Colgate are from

middle and lower middle class society. Satisfaction

level of Colgate is also very high.

Recommendations’

We find that people are more conscious about

product quality and price so marketer should

maintain the quality and fix the reasonable price.

They are not much aware about brand name so

marketers should don’t waste the money on brand

promotion and advertising, as we found that more

than 70% people know about product b

Television so they invest in telemarketing.

So many consumers have commented on packaging,

variety and taste of Colgate so they should work on

it. Some peoples are not satisfied with color and

flavor of Pepsodent paste,

CONCLUSION

It has been an enlightening first hand experience to

conduct a consumer satisfaction survey using

questionnaires and the conclusion we have drawn is

based on direct responses from the respondents.

After collecting this sample survey we found that

most of the people are more aware about quality of

product this is a very good symbol for healthy

competition in market. After that they look on price

of the product, it means if product quality is good

they ready to pay more money but we found that

they are not much worry about brand name, that’s

bad for marketers who didn’t made brand loyalty in

customers.

We found that most of the people know about

product by Television. It means in rural area where

electricity is not available people are not much

aware about these products.