CONSUMER BUYING BEHAVIOUR on FMCG

GROUP MEMBERS

SHALAKA PATILAADITI RAUTNISHANT SINGHGANESH JONDHALEBHAGYESH DHANUPRIYESH SOLKAR

Consumer Buying Behavior

Consumer Buying Behavior

Consumer Buying Behavior The buying behavior of final consumers (individuals & households) who buy goods and services for personal consumption.

Study consumer behavior to answer: “How do consumers respond to

marketing efforts the company might use?”

Why do we need to study Consumer Behavior ?

Because no longer can we take the customer/consumer for the granted.

Characteristics Affecting Consumer Behavior

BuyerBuyer

Psychological

Personal

Social

Culture

Need RecognitionNeed Recognition

Information SearchInformation Search

Evaluation of AlternativesEvaluation of Alternatives

Purchase DecisionPurchase Decision

Postpurchase BehaviorPostpurchase Behavior

The Buyer Decision Process

Fast Moving Consumer Goods

Fast Moving Consumer Goods

Fast Moving Consumer Goods (FMCG) – or Consumer Packaged Goods (CPG) – are products that are sold quickly and at relatively low cost.

A type of good that is consumed every day by the average consumer.

Introduction

Also known as Consumer Packaged Goods (CPG)

Well established distribution network,

Low penetration levels,

Absolute profit made on FMCG products is

relatively

small but they sell in large quantity & earn large

profits,

Intense competition between the organized and

unorganized segments,

Lower per capital consumption &

Low operating cost.

FMCG Category & Products

Household Caree.g. laundry soaps, mosquito repellents, dish cleaners

etc.

Food & beveragese.g. soft drinks, bakery products, tea, coffee,

vegetables etc.

Personal Caree.g. oral care, hair care, skin care, cosmetics, deodorants, perfumes etc.

Packaging

Attractive packsVibrant colorsPack will show the important

feature of productProtective packaging( bru coffee)Size wise packing (Navratna oil

and Colgate)According to segmentation of

MarketPackaging should be enhanced

time by timeAffordable packs ( coca cola 200

ml).

Advertisement

Huge investment on advertisementFrequent broadcastSpecially during peak hoursDuring live matchesDuring popular TV showsTarget TV channelsThrough banners, posters, trial packs,

events, hoardings, radio etc.Based on Market Research

Why Advertisement?

As a reminderTo inform about our productTo show the success of brandTo attract the customersTo hamper the unsecured mind of

consumer (e.g. Saffola, Dettol)To arise the need purposelyTo attach consumer emotionally with

productTo show facts and figures of products

Hindustan Unilever Limited

Earlier known as Hindustan lever limited.

It was formed in 1933 as lever brothers India limited Headquartered in Mumbai.

Hul is the market leader in Indian products such as tea, soaps, detergentsetc.

The company’s statement of corporate purpose is to meet the everyday needs of

people, everywhere.´

The company was renamed in late June 2007 to Hindustan unilever limited.

Hul holds 100 factories across India for manufacturing its diverse product range.

ITC

ITC is one of India's foremost private sector companies with a market capitalization of over US $ 30 bln and a turnover of US $ 6 bln.

ITC ranks among India's 10 Most Valuable (company)Brands.

While ITC is an outstanding market leader in cigarettes, Hotels, Paperboards, Packaging and Agri-Export.

ITC is rated among the World's Best Big Companies.

Major Players

Market Structure

Monopolistically competitive market

Few barriers to entry and exit.

Intense Competition from increasing FMCG

companies.

Competition even from unorganized sector.

Products are slightly differentiated but close

substitutes

Decreasing returns of scale

Some degree of market power for companies.

Price Determinants

Rising prices of raw material due to inflation

Increase in Labor cost.

Price sensitivity of consumers.

Intense competition.

More choices for consumers.

Price War.

Marketing Strategy

Huge investment on advertising.

Increased spending on advertisement and

promotion: From 8-9% to 12-14%

Marketing plays significant role in Brand

building.

Marketing mix - T.V, Radio and Newspapers,

Banners, posters, trial packs, events, hoardings,

Internet and e-initiatives are gaining ground.

Marketing Strategy…

An eye on

strategies of the

competitor.

Ambush Marketing.

Targeting Rural

market.

Celebrity Brand

Endorsements.

DRAWING CONCLUSION