Chapter-1: Effect of Branding in Purchase in Purchase of FMCG Products
Chapter-1: Effect of Branding in Purchase in Purchase of FMCG Products
Chapter-1: Effect of Branding in Purchase in Purchase of FMCG Products
CHAPTER-1
INTRODUCTION
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Effect of branding in purchase in purchase of FMCG products
Section-A
INTRODUCTION TO FMCG:
As we are approaching to the twenty first century the FMCG product
market is growing like a money plant in this world. Not only
companies are gaining huge profit from these product sources but
these products are also one of the main ingredients in our day today
life. So the customer has to think and decide on the products which he
is going to purchase because of the availability of the choices
replicates variants in every section of the products.
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Effect of branding in purchase in purchase of FMCG products
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Effect of branding in purchase in purchase of FMCG products
BRANDING:
American marketing Association defines a brand as, “a
name, term, symbol or design or a combination of them which is
intended to identify the goods or services of one seller and to
differentiate them from those of the competitors.”
Functions/Objects of Branding:
1. It helps in product identification and gives distinctive to a
product.
2. Indirectly, it denotes quality or standard of product.
3. It estimates imitation.
4. It helps in advertising and packaging activities.
5. It helps in price differentiation of a product.
6. It facilitates in making a choice.
7. It helps in create and sustain brand loyalty to a particular
product.
8. It is essential for competition, because without a means for
identification, there is no way of making choice.
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Effect of branding in purchase in purchase of FMCG products
1) Product differentiation
2) Brand Image
3) Creation of market
5) Brand Preference
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Effect of branding in purchase in purchase of FMCG products
6) Brand patronage
Branding helps advertising, display and sales promotion,
branding and packaging go hand to hand.
Advantages to customer:
1. A customer has an assurance of quality and consistency in the
product attributes being offered.
2. Certain brands provide status and psychological satisfaction to
the consumers.
3. There is considerable saving of time and energy in shopping for
goods.
4. Rapid sales turnover assures fresh due to frequent replacement
of stock with the retailer.
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Effect of branding in purchase in purchase of FMCG products
CONSUMER BEHAVIOUR
We start with the definition of consumer Market. “A consumer
Market can be defined as all the individuals and households who buy
goods and services for personal consumption can be said to be part of
the consumer market.
Consumer Behavior is defined as… “All psychological, social
and physical of all potential consumers as they become aware of,
evaluate, purchase, consume and tell others about products and
services”
2. Population
3. Urban-Rural composition
4. Sex composition
5. Age factor
6. Literacy level
7. Income level
8. Linguistic diversity
9. Religion
10. Dress, food, habits and festival
Geography:
India ranks seventh in the world in terms of size. There are also
various regions namely great mountain zone, Indo Gangetic plain, the
desert regions. Climate in terms of temperature is also varied.
Temperature in extreme north is low as compared to the south and
north regions.
Population:
India is one of the world’s highly populated countries. Further,
the distribution of the population is also unequally divided amongst
the states of India. Related to density of population also there is
diversity among the different regions/states depending upon
topography, climate and level of economic development. Knowledge
about the density of population will help the marketing executives in
developing appropriate priorities and alternative marketing strategies.
Urban-Rural Composition:
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Effect of branding in purchase in purchase of FMCG products
Sex Composition:
With increasing education, the role of women has undergone
significant changes. The profile of women has changed from that of a
housewife to a working woman. Today, the urban housewife is an
active partner and plays a major role in the purchase decisions. In
India the sex composition in most the states consists of more males
than females except in Kerala where it is the other way round. This
knowledge of sex composition will help the marketer to understand
the market better and work out strategies to design suitable
promotional techniques for each gender.
Age:
This is another important factor to be kept in mind while
segmenting the market so that suitable marketing strategies may be
developed. On account of wide exposure to various communication
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Effect of branding in purchase in purchase of FMCG products
Literacy Level:
Depending upon the level of literacy amongst the target
consumers, the marketers will have to design a suitable
communication mix for promotion of a product or service. According
to 1991 census, the nation’s average literacy rate is 52.11 Crore
literacy among males was 63.86% while among females it was
39.42%. With the efforts of government continuing to bring down the
level of illiteracy in the country, there should be an increase in the
level of literate consumers in the coming years.
Thus the literacy level goes a long way in shaping consumer
demand by influencing the tastes, Living standards and aspirations of
people.
Income Level:
Income level, (money to spend or purchasing power)
purchasing power or income has a direct effect on the potential
demand for the product. Income levels can be analyzed on the basis of
two income concepts, namely (a) disposable income(income minus
taxes), (b) discretionary income, which is the income left after paying
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Effect of branding in purchase in purchase of FMCG products
taxes and meeting expenses related to food clothing shelter and the
other necessary items.
Income, credit and assets are objective elements of our
purchasing power. However, economic ability must be combined with
willingness to buy i.e., the ability and willingness to spend the
discretionary income will have a direct effect on the potential demand
of the products. Purchasing power depends on the income of the
target market.
Thus, depending upon the income of its target market, the company
will decide on the suitable marketing mix elements to be adopted
especially related to pricing of the product.
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Effect of branding in purchase in purchase of FMCG products
SECTION-B
INDUSTRY PROFILE
In this competitive economy FMCG market is having significant
demand in low to middle income consumers and above all highly
price sensitive.
994 data, it provided 6% of the total 9.1 million. The industry has a
significant rural bias and accounts for 56% of the total rural Demand.
Industry Classification:
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Effect of branding in purchase in purchase of FMCG products
CHAPTER-03
RESEARCH DESIGN
RESEARCH DESIGN
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Effect of branding in purchase in purchase of FMCG products
FMCG are of high sales and they have short life and as they are fast
moving as the title says.
This study helps to understand how branding affects the purchase
decision of the consumer in buying FMCG.
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Effect of branding in purchase in purchase of FMCG products
RESEARCH METHODOLOGY
Type of study:
This is a descriptive type of study which means Descriptive
research, also known as statistical research, describes data and
characteristics about the population or phenomenon being studied.
Descriptive study answers the questions who, where, what, when and
how.
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Effect of branding in purchase in purchase of FMCG products
Survey Method:
Random sampling is done by circulating questionnaire to
FMCG.
Questionnaires:
A well structured questionnaire had been circulated to FMCG.
A questionnaire consists of a set of questions regarding effect of
branding FMCG.
Sample size:
100 consumers of FMCG were taken as sample for my study.
SOURCES OF DATA:
1. Primary Data
2. Secondary Data.
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Effect of branding in purchase in purchase of FMCG products
1. Graphs
2. Bar charts
3. Percentage.
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Effect of branding in purchase in purchase of FMCG products
15-20 21 21
21-25 27 27
26-30 18 18
31-35 16 16
35 and above 19 19
Total 100 100
Source: Primary data
Graph No. 1
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Effect of branding in purchase in purchase of FMCG products
15-20
21-25
26-30
31-35
35 and above
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Effect of branding in purchase in purchase of FMCG products
Table no.2
Gender No % of respondents
of
respondents
Male 69 69
Female 31 31
Graph no 2
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Effect of branding in purchase in purchase of FMCG products
80
70
60
50
No of respondents
40
30
20
10
0
Male Female
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Effect of branding in purchase in purchase of FMCG products
Table no. 3
Options No. of % of respondents
respondents
Yes 70 70
No 30 30
Graph no. 3
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Effect of branding in purchase in purchase of FMCG products
Yes
No
Table no. 4
Attribute No. of % of respondents
respondents
Brand name 34 34
Cleanliness 24 24
Price 23 23
Easy availability 9 9
others 10 10
Total 100 100
Source: Primary data
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Effect of branding in purchase in purchase of FMCG products
Brand name
Cleanliness
Price
Easy availability
others
Reasons No % of respondents
of
respondents
Financial 27 27
constraints
Waiting for more 55 55
innovative
product
Waiting for 18 18
market response
Total 100 100
Source: Primary data
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Effect of branding in purchase in purchase of FMCG products
60
50
40
30
20
10
0
ts ct ns
e
ain du o
tr r o sp
ns ep re
co tiv ke
t
ic al va ar
an o
nn rm
Fin ei fo
or ng
r m aiti
fo W
ng
ia ti
W
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Effect of branding in purchase in purchase of FMCG products
Table no. 6
Influences No % of respondents
of
respondents
Advertising 27 27
Shop display 8 8
Word of mouth 17 17
Attractive 20 20
packaging
Family/Friends/ 16 16
Relatives
Dealer 7 7
Any other 4 4
Total 100 100
Source: Primary data
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Effect of branding in purchase in purchase of FMCG products
Advertising
Shop display
Word of mouth
Attractive packaging
Family/Friends/
Relatives
Dealer
Any other
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Effect of branding in purchase in purchase of FMCG products
Table no. 7
Options No % of respondents
of
respondents
Agree 54 54
Strongly agree 26 26
Disagree 17 17
Strongly disagree 3 3
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Effect of branding in purchase in purchase of FMCG products
Graph Title: “Respondents opinion regarding the
influence of brand name in purchase of FMCG
products”.
60
50
No of respondents
40
30
20
10
0
Agree Stongly agree Disagree Strongly disagree
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Effect of branding in purchase in purchase of FMCG products
Table no. 8
Options No of % of respondents
respondents
Agree 52 52
Strongly agree 34 34
Disagree 13 13
Strongly disagree 1 1
Graph no 8
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Effect of branding in purchase in purchase of FMCG products
60
50
40 No of respondents
30
20
10
0
Agree Strongly agree Disagree Strongly agree
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Effect of branding in purchase in purchase of FMCG products
Table no. 9
Options No. of % of respondents
respondents
Agree 43 43
Strongly agree 30 30
Disagree 23 23
Strongly 4 4
disagree
Total 100 100
Source: Primary data
Graph no. 9
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Effect of branding in purchase in purchase of FMCG products
Agree
Strongly agree
Disagree
strongly agree
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Effect of branding in purchase in purchase of FMCG products
Table no. 10
Options No. of % of respondents
respondents
Yes 80 80
No 20 20
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Effect of branding in purchase in purchase of FMCG products
Graph no 10
80
70
60
No of respondents
50
40
30
20
10
0
Yes No
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Effect of branding in purchase in purchase of FMCG products
Strongly agree 40 40
Disagree 10 10
Strongly disagree 3 3
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Effect of branding in purchase in purchase of FMCG products
Graph no 11
50
45
40
No of respondents
35
30
25
20
15
10
5
0
Agree Strongly agree Disagree Strongly disagree
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Effect of branding in purchase in purchase of FMCG products
No 43 43
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Effect of branding in purchase in purchase of FMCG products
Graph no 12
Yes
2nd Qtr
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Effect of branding in purchase in purchase of FMCG products
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Effect of branding in purchase in purchase of FMCG products
Graph no 13
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Effect of branding in purchase in purchase of FMCG products
No 37 37
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Effect of branding in purchase in purchase of FMCG products
Graph no 14
70
60
50
No of respondents
40
30
20
10
0
Yes No
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Effect of branding in purchase in purchase of FMCG products
FINDINGS
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Effect of branding in purchase in purchase of FMCG products
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Effect of branding in purchase in purchase of FMCG products
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Effect of branding in purchase in purchase of FMCG products
QUESTIONNAIRE
Dear friends,
PERSONAL DETAILS
SEX: M F
OCCUPATION:
MONTHLY INCOME:
5000-10000
10001-20000
20001-30000
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Effect of branding in purchase in purchase of FMCG products
Yes No
3. What was the reason for the delay between the purchase
decision and the actual purchase?
Financial constraints
Advertising Shop Display
Dealer
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Effect of branding in purchase in purchase of FMCG products
Agree Disagree
Agree Disagree
Agree Disagree
Yes No
Agree Disagree
Strongly Agree strongly disagree
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Effect of branding in purchase in purchase of FMCG products
10. Will you like to switch your brand preference if you get some
promotional scheme with another brand?
Yes No
Yes No
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