Dissertation Report On
Consumer Behavior in FMCG Products
Submitted Submitted By: Ms, Diveya Khullar
To: Debjani
Bhattacharya
Professor (Marketing & Operations)
MBA
Niilm Centre for Management Studies Centre for Management Studies
Niilm
Acknowledgement I consider my proud privilege to express deep sense of gratitude to Prof. Debjani Bhattacharya for her admirable and valuable guidance, keen interest, encouragement and constructive suggestions during the course of the project. I would also like to express my hearty gratitude to my faculty guides, Prof. Arun Kumar for their valuable guidance and sincere cooperation, which helped me in completing this dissertation project. Last, but not the least, I sincerely thank all the members of my department for their immense support and assistance extended during the course of this project and in making it a valuable experience.
Diveya Khullar MBA (Marketing & Operations)
Dissertation Report For
Consumer Behaviour In
The FMCG (Fast Moving Consumer Goods) Sector
Executive summary
The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a well-established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labor costs and presence across the entire value chain gives India a competitive advantage.
The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market Potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry
Introduction Fast Moving Consumer Goods (FMCG), are products that are sold quickly at
relatively low cost. Though the absolute profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be large. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, teeth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, light bulbs, batteries, paper products and plastic goods.[1] FMCG may also include pharmaceuticals, consumer electronics, packaged food products and drinks, although these are often categorized separately. FMCG products contrast with durable goods or major appliances such as kitchen appliances, which are generally replaced less than once a year. In Britain, "white goods" in FMCG refers to large household electronic items such as refrigerators. Smaller items such as TV sets and stereo systems are sometimes termed "brown goods".[ FMCG industry, alternatively called as CPG (Consumer packaged goods)
industry primarily deals with the production, distribution and marketing of consumer packaged goods. The Fast Moving Consumer Goods (FMCG) are those consumables which are normally consumed by the consumers at a regular
interval. Some of the prime activities of FMCG industry are selling, marketing, financing, purchasing, etc. The industry also engaged in operations, supply chain, production and general management.
FMCG industry provides a wide range of consumables and accordingly the
amount of money circulated against FMCG products is also very high. The competition among FMCG manufacturers is also growing and as a result of this, investment in FMCG industry is also increasing, specifically in India, where FMCG industry is regarded as the fourth largest sector with total market size of US$13.1 billion. FMCG Sector in India is estimated to grow 60% by 2010. FMCG industry is regarded as the largest sector in New Zealand which accounts for 5% of Gross Domestic Product (GDP). Some common FMCG product categories include food and dairy products, glassware, paper products, pharmaceuticals, consumer electronics, packaged food products, plastic goods, printing and stationery, household products, photography, drinks etc. and some of the examples of FMCG products are coffee, tea, dry cells, greeting cards, gifts, detergents, tobacco and cigarettes, watches, soaps etc. Some of the merits of FMCG industry, which made this industry as a potential one are low operational cost, strong distribution networks, presence of renowned FMCG companies. Population growth is another factor which is responsible behind the success of this industry FMCG industry creates a wide range of job opportunities. This industry is a
stable, diverse, challenging and high profile industry providing a wide range of job categories like sales, supply chain, finance, marketing, operations, purchasing, human resources, product development, general management. Some of the well known FMCG companies are Sara Lee, Nestlé, Reckitt Benckiser, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi and Mars etc
WHY INDIA Large domestic market India is one of the largest emerging markets, with a population of over one billion. India is one of the largest economies in the world in terms of purchasing power and has a strong middle class base of 300 million. Now India has two major sectors where the market can be spotted. Urban and Rural markets. Rural-urban profile Urban Population 2001 – 02 (mn house 53 hold)
Rural 135
Population household)
153
2009-10
% Distribution (2001-02)
(mn 69
28
Market (Towns/Villages)
Universe of Outlets (mn)
3,768
1
72
627,000
3.3
Around 70 per cent of the total households in India (188 million) resides in the rural areas. The total number of rural households is expected to rise from 135 million in 2001-02 to 153 million in 2009-10, this presents the largest potential market in the world. The annual size of the rural FMCG market was estimated at around US$ 10.5 billion in 2001-02. With growing incomes at both the rural and the urban level, the market potential is expected to expand further. India - a large consumer goods spender An average Indian spends around 40 per cent of his income on grocery and 8 per cent on personal care products. The large share of fast moving consumer goods (FMCG) in total individual spending along with the large population base is another factor that makes India one of the largest FMCG markets.
Consumption pie EXPENDITURE
Consumer Durables clothing vacations eating out footwear entertainment accessories books and music grocery personal care home textiles savings and investment s
Even on an international scale, total consumer expenditure on food in India at US$ 120 billion is amongst the largest in the emerging.
Change in the Indian consumer profile Consumer Profile
1999 Population(millions) Population<25yearsofage Urbanisation (%)
846
2001
2006
1,012
1,087
480
546
26
28
565 31
Rapid urbanisation, increased literacy and rising per capita income, have all caused rapid growth and change in demand patterns, leading to an explosion of new opportunities. Around 45 per cent of the population in India is below 20 years of age and the young population is set to rise further. Aspiration levels in this age group have been fuelled by greater media exposure, unleashing a latent demand with more money and a new mindset. Demand-supply gap Currently, only a small percentage of the raw materials in India are processed into value added products even as the demand for processed and convenience
food is on the rise. This demand supply gap indicates an untapped opportunity in areas such as packaged form, convenience food and drinks, milk products etc. In the personal care segment, the low penetration rate in both the rural and urban areas indicates a market potential.
FMCG
Category
and
products Health care –
Fabric wash (laundry soaps and synthetic detergents); household cleaners (dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellents, metal polish and furniture polish). Food and beverages –
Health beverages; soft drinks; staples/cereals; bakery products (biscuits, bread, cakes); snack food; chocolates; ice cream; tea; coffee; soft drinks; processed fruits, vegetables; dairy products; bottled water; branded flour; branded rice; branded sugar; juices etc. Personal care –
Oral care, hair care, skin care, personal wash (soaps); cosmetics and toiletries; deodorants; perfumes; feminine hygiene; paper products.
Worlds View and India The structure The Indian FMCG sector is the fourth largest sector in the economy and creates employment for three million people in downstream activities. Within the FMCG sector, the Indian food processing industry represented 6.3 per cent of GDP and accounted for 13 per cent of the country's exports in 2003-04. A distinct feature of the FMCG industry is the presence of most global players through their subsidiaries (HLL, P&G, Nestle), which ensures new product launches in the Indian market from the parent's portfolio. Critical operating rules in Indian FMCG sector • Heavy launch costs on new products on launch advertisements, free samples and product promotions. • Majority of the product classes require very low investment in fixed assets • Existence of contract manufacturing
• Marketing assumes a significant place in the brand building process • Extensive distribution networks and logistics are key to achieving a high level of penetration in both the urban and rural markets • Factors like low entry barriers in terms of low capital investment, fiscal incentives from government and low brand awareness in rural areas have led to the mushrooming of the unorganised sector • Providing good price points is the key to success.
Here are a few breakups of what Indian standards look like when compared with the other similar or powerfull countries. Few examples as to where our country stands…
Indian FMCG market in the Urban Sector
Most Indian FMCG companies focus on urban markets for value and rural markets for volumes. The total market has expanded from US$ 17.6 billion in 1992-93 to US$ 22 billion in 1998-99 at current prices. Rural demand constituted around 52.5 per cent of the total demand in 1998-99. Hence, rural marketing has become a critical factor in boosting bottomlines. As a result, most companies' have offered low price products in convenient packaging. These contribute the majority of the sales volume. In comparison, the urban elite consumes a proportionately higher value of FMCGs, but not volume.
Local Kirana Shops
Products Household care The size of the fabric wash market is estimated to be US$ 1 billion, household cleaners to be US$ 239 million and the production of synthetic detergents at 2.6 million tonnes. The demand for detergents has been growing at an annual growth rate of 10 to 11 per cent during the past five years. The urban market prefers washing powder and detergents to bars on account of convenience of usage, increased purchasing power, aggressive advertising and increased penetration of washing machines. The regional and smallunorganised players account for a major share of the total detergent market in volumes. Personal care The size of the personal wash products is estimated at US$ 989 million; hair care products at US$ 831 million and oral care products at US$ 537 million. While the overall personal wash market is growing at one per cent, the premium and middle-end soaps are growing at a rate of 10 per cent. The leading players in this market are HLL, Nirma, Godrej Soaps and Reckitt & Colman. The oral care market, especially toothpastes, remains under penetrated in India (with penetration level below 45 per cent) due to lack of hygiene awareness among rural markets. The industry is very competitive both for organised and smaller regional players. The Indian skin care and cosmetics market is valued at US$
274 million and dominated by HLL, Colgate Palmolive, Gillette India and Godrej Soaps. This segment has witnessed the entry of a number of international brands, like Oriflame, Avon and Aviance leading to increased competition. The coconut oil market accounts for 72 per cent share in the hair oil market. In the branded coconut hair oil market, Marico (with Parachute) and Dabur are the leading players. The market for branded coconut oil is valued at approximately US$ 174 million. Food and Beverages Food According to the Ministry of Food Processing, the size of the Indian food processing industry is around US$ 65.6 billion including US$ 20.6 billion of value added products. Of this, the health beverage industry is valued at US$ 230 billion; bread and biscuits at US$ 1.7 billion; chocolates at US$ 73 million and ice creams at US$ 188 million. The size of the semi-processed/ready to eat food segment is over US$ 1.1 billion. Large biscuits & confectionery units, soyaprocessing units and starch/glucose/sorbitol producing units have also come up, catering to domestic and international markets. The three largest consumed categories of packaged foods are packed tea, biscuits and soft drinks.
Beverages The Indian beverage industry faces over supply in segments like coffee and tea. However, more than half of this is available in unpacked or loose form. Indian hot beverage market is a tea dominant market. Consumers in different parts of the country have heterogeneous tastes. Dust tea is popular in southern India, while loose tea in preferred in western India. The urban-rural split of the tea market was 51:49 in 2000. Coffee is consumed largely in the southern states. The size of the total packaged coffee market is 19,600 tonnes or US$ 87 million. The urban rural split in the coffee market was 61:39 in 2000 as against 59:41 in 1995. The total soft drink (carbonated beverages and juices) market is estimated at 284 million crates a year or US$ 1 billion. The market is highly seasonal in nature with consumption varying from 25 million crates per month during peak season to 15 million during offseason. The market is predominantly
urban with 25 per cent contribution from rural areas. Coca cola and Pepsi dominate the Indian soft drinks market. Exports India is one of the world's largest producers for a number of FMCG products but its exports are a very small proportion of the overall production. Total exports of food processing industry was US$ 2.9 billion in 2001-02 and marine products accounted for 40 per cent of the total exports. Though the Indian companies are going global, they are focusing more on the overseas markets like Bangladesh , Pakistan, Nepal, Middle East and the CIS countries because of the similar lifestyle and consumption habits between these countries and India. HLL, Godrej Consumer, Marico, Dabur and Vicco laboratories are amongst the top exporting companies.
National Players Domestic players Britannia India Ltd (BIL) Britannia India Ltd was incorporated in 1918 as Britannia Biscuit Co Ltd and currently the Groupe Danone (GD) of France (a global major in the food processing business) and the Nusli Wadia Group hold a 45.3 per cent equity stake in BIL through AIBH Ltd (a 50:50 joint venture). BIL is a dominant player in the Indian biscuit industry, with major brands such as Tiger glucose, Mariegold, Fifty-Fifty, Good Day, Pure Magic, Bourbon etc. The company holds a 40 per cent market share in the overall organised biscuit market and has a capacity of 300,000 tonne per annum. Currently, the bakery product business accounts for 99.1 per cent of BIL's turnover. The company reported net sales of US$ 280 million in 2002-03. Britannia Industries Ltd (BIL) plans to increase its
manufacturing capacity through outsourced contract manufacturing and a greenfield plant in Uttaranchal to expand its share in the domestic biscuit and confectionery market. Dabur India Ltd Established in 1884, Dabur India Ltd is the largest Indian FMCG and ayurvedic products company. The group comprises Dabur Finance, Dabur Nepal Pvt Ltd, Dabur Egypt Ltd, Dabur Overseas Ltd and Dabur International Ltd. The product portfolio of the company includes health care, food products, natural gums & allied chemicals, pharma, and veterinary products. Some of its leading brands are Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola, Lal Dant Manjan, Pudin Hara and the Real range of fruit juices. The company reported net sales of US$ 218 million in 200304. Dabur has firmed up plans to restructure its sales and distribution structure and focus on its core businesses of fast-moving consumer good products and over-the-counter drugs. Under the restructured set-up, the company plans to increase direct coverage to gap outlets and gap towns where Dabur is not present. A roadmap is also being prepared to rationalise the stockists' network in different regions between various products and divisions. Indian Tobacco Corporation Ltd (ITCL) Indian Tobacco Corporation Ltd is an associate of British American Tobacco with a 37 per cent stake. In 1910 the company's operations were restricted to trading in imported cigarettes. The company changed its name to ITC Limited in the mid seventies when it diversified into other businesses. ITC is one of India's foremost private sector companies with a turnover of US$ 2.6 billion. While ITC is an outstanding market leader in its traditional businesses of cigarettes, hotels, paperboards, packaging and agriexports, it is rapidly gaining market share even in its nascent businesses of branded apparel, greeting cards and packaged foods and confectionary. After the merger of ITC Hotels with ITC Ltd, the company will ramp up its growth plans by strengthening its alliance with Sheraton and through focus on international projects in Dubai and the Far East. ITC's subsidiary, International Travel House (ITH) also aims to launch new products and services by way of boutiques that will provide complete travel services. Marico
Marico is a leading Indian Group incorporated in 1990 and operating in consumer products, aesthetics services and global ayurvedic businesses. The company also markets food products and distributes third party products. Marico owns well-known brands such as Parachute, Saffola, Sweekar, Shanti Amla, Hair & Care, Revive, Mediker, Oil of Malabar and the Sil range of processed foods. It has six factories, and sub-contract facilities for production. In 2003-04, the company reported a turnover of US$ 200 million. The overseas sales franchise of Marico's branded FMCG products is one of the largest amongst Indian companies. It is also the largest Indian FMCG company in Bangladesh. The company plans to capture growth through constant realignment of portfolio along higher margin lines and focus on volume growth, consolidation of market shares, strengthening flagship brands and new product offerings (2-3 new product launches are expected in 2004-05). It also plans to expand its international business to Pakistan. Nirma Limited Nirma Ltd, promoted by Karsanbhai Patel, is a homegrown FMCG major with a presence in the detergent and soap markets. It was incorporated in 1980 as a private company and was listed in fiscal 1994. Associate companies' Nirma Detergents, Shiva Soaps and Detergents, Nirma Soaps and Detergents and Nilnita Chemicals were merged with Nirma in 1996-1997. The company has also set up a wholly owned subsidiary Nirma Consumer Care Ltd, which is the sole marketing licensee of the Nirma brand in India. Nirma also makes alfa olefin, fatty acid and glycerine. Nirma is one of the most successful brands in the rural markets with extremely low priced offerings. Nirma has plants located in Gujarat, Madhya Pradesh and Uttar Pradesh. Its new LAB plant is located in Baroda and the soda ash complex is located in Gujarat. Nirma has strong distributor strength of 400 and a retail reach of over 1 million outlets. The company reported gross sales of US$ 561 million in 2003-04. It plans to continue to target the mid and mass segments for future growth.
Foreign Players
Cadbury India Ltd is a 93.5 per cent subsidiary of Cadbury Schweppes Plc, UK, a global major in the chocolate and sugar confectionery industry. CIL was set up as a trading concern in 1947 and subsequently began its operations with the small scale processing of imported chocolates and food drinks. CIL is currently the largest player in the chocolate industry in India with a 70 per cent market share. The company is also a key player in the malted foods, cocoa powder, drinking chocolate, malt extract food and sugar confectionery segment. The company had also entered the soft drinks market with brands like 'Canada Dry' and 'Crush', which were subsequently sold to Coca Cola in 1999. Established brands include Dairy Milk, Perk, Crackle, 5 Star, Éclairs, Gems, Fructus, Bournvita etc. The company reported net sales of US$ 160 million in 2003. The company plans to increase the number of retail outlets for future growth and market expansion. Cargill Cargill Inc is one of the world's leading agri-business companies with a strong presence in processing and merchandising, industrial production and financial services. Its products and geographic diversity (over 40 product lines with a direct presence in over 65 countries and business activities in about 130 countries) as well as its vast communication and transportation network help optimise commodity movements and provide competitive advantage. Cargill India was incorporated in April 1996 as a 100 per cent subsidiary of Cargill Inc of the US. It is engaged in trading in soyabean meals, wheat, edible oils, fertilisers and other agricultural commodities besides marketing branded packaged foods. It has also set up its own anchorage facilities at Rosy near Jamnagar in Gujarat for efficient handling of its import and export consignments. Coca Cola Coca-Cola started its India operations in 1993. The Coca-Cola system in India comprises 27 wholly company-owned bottling operations and another 17 franchisee-owned bottling operations. A network of 29 contract-packers also manufacture a range of products for the company. Leading Indian brands Thums Up, Limca, Maaza, Citra and Gold Spot exist in the Company's international family of brands along with Coca-Cola, Diet Coke, Kinley, Sprite and Fanta, plus the Schweppes product range. During the past decade, the
Coca-Cola system has invested more than US$ 1 billion in India. In 2003, CocaCola India pledged to invest a further US$ 100 million in its operations. Colgate-Palmolive India Colgate Palmolive India is a 51 per cent subsidiary of Colgate Palmolive Company, USA. It is the market leader in the Indian oral care market, with a 51 per cent market share in the toothpaste segment, 48 per cent market share in the toothpowder market and a 30 per cent share in the toothbrush market. The company also has a presence in the premium toilet soap segment and in shaving products, which are sold under the Palmolive brand. Other wellknown consumer brands include Charmis skin cream and Axion dish wash. The company reported sales of US$ 226 million in 2003-04. The company's strategy is to focus on growing volumes by improving penetration through aggressive campaigning and consumer promotions. The company plans to launch new products in oral and personal care segments and is prepared to continue spending on advertising and marketing to gain market share. Margin gains are being targeted through efficient supply chain management and bringing down cost of operations. H J Heinz Co A US$ 8.4 billion American foods major, H J Heinz Co comprises 4,000 strong brand buffet in infant food, sauces and condiments. The company was the first to commence manufacturing and bottling of tomato ketchup in 1876. In India, Heinz has a presence through its 100 per cent subsidiary Heinz India Pvt Ltd. Heinz acquired the consumer products division of pharmaceutical major Glaxo in 1994. Heinz's product range in India consists of Complan milk beverage, health drink Glucon-D, infant food Farex and Nycil prickly heat powder, besides the Heinz ketchup range. Hindustan Lever Ltd (HLL) Hindustan Lever Ltd is a 51 per cent owned subsidiary of the Anglo-Dutch giant Unilever, which has been expanding the scope of its operations in India since 1888. It is the country's biggest consumer goods company with net sales of US$ 2.4 billion in 2003. HLL is amongst the top five exporters of the country and also the biggest exporter of tea and castor oil. The product portfolio of the company includes household and personal care products like soaps, detergents,
shampoos, skin care products, colour cosmetics, deodorants and fragrances. It is also the market leader in tea, processed coffee, branded wheat flour, tomato products, ice cream, jams and squashes. HLL enjoys a formidable distribution network covering over 3,400 distributors and 16 million outlets.
Nestle India Ltd (NIL) Nestle India Ltd a 59.8 per cent subsidiary of Nestle SA, Switzerland, is a leading manufacturer of food products in India. Its products include soluble coffee, coffee blends and teas, condensed milk, noodles (81 per cent market share), infant milk powders (75 per cent market share) and cereals (80 per cent market share). Nestle has also established its presence in chocolates, confectioneries and other processed foods. Soluble beverage s and milk products are the major contributors to Nestle's total sales. Some of Nestle's popular brands are Nescafe, Milkmaid, Maggi and Cerelac. The company has entered the chilled dairy segment with the launch of Nestle Dahi and Nestle Butter. Nestle has also made a foray in non-carbonated cold beverages segment through placement of Nestea iced tea and Nescafe Frappe vending machines. Exports contribute to 23 per cent of its turnover and the company reported net sales of US$ 440 million in 2003
PepsiCo PepsiCo is a world leader in convenient foods and beverages, with revenues of about US$ 27 billion. PepsiCo brands are available in nearly 200 markets across the world. The company has an extremely positive outlook for India. "Outside North America two of our largest and fastest growing businesses are in India and China, which include more than a third of the world's population" (Pepsico's annual report). PepsiCo entered India in 1989 and is concentrating on three focus areas - soft drink concentrate, snack foods and vegetable and food processing. PepsiCo's success is the result of superior products, high standards of performance and distinctive competitive strategies. Procter & Gamble Hygiene and Health Care Limited Richardson Hindustan Limited (RHL), manufacturer of the Vicks range of products, was rechristened 'Procter & Gamble India' in October 1985, following its affiliation to the 'Procter & Gamble Company', USA. Procter & Gamble Hygiene and Health Care Limited (PGHHCL) acquired its current name in 1998, reflecting the two key segments of its business. P&G, USA has a 65 per cent stake in PGHHCL. The parent also has a 100 per cent subsidiary, Procter & Gamble Home Products (PGHP). The overall portfolio of the company includes healthcare; feminine-care; hair care and fabric care businesses. PGHH operates in just two business segments - Vicks range of cough & cold remedies and Whisper range of feminine hygiene. The detergent and shampoo business has been relocated globally to Vietnam. The company imports and markets most of the products from South East Asian countries and China, while manufacturing, marketing and export of Vicks and sanitary napkin s has been retained in India. The company reported sales of US$ 91 million in 2002-03. The parent company has announced its plan to explore further external collaborations in India to meet its global innovation and knowledge needs.
Research objectives •
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. Research methodology Data collection
Sample unit:
1.
working people (including men & women)
2. 3. 4.
college students school students senior citizens
Sample size:
1.
working people: 32%
2. 3. 4.
college students: 29% school students: 23% senior citizens: 16%
Sampling procedure:
The researcher will take stratified random sampling as the sampling procedure. Data collection method:
1.
Primary data: it will be collected with the help of a self administered
questionnaire. This questionnaire aims to gather information related to various Branded products.
2.
Secondary data: it will be collected with the help of books, research
papers, magazines, news papers, journals, internet, etc.
Research instruments: Questionnaire design:
As the questionnaire is self administrated one, the survey is kept simple and user friendly. Words used in questionnaire are readily understandable to all respondent. Also technical jargons are avoided to ensure that there is no confusion for respondents. 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 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.
Indian consumer class can be classified according to the following criteria: 1. Income 2. Socio-Economic status 3. Age demographics 4. Geographical dispersion
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. 2. 3.
Higher income Upper middle income Middle middle income
4. 5.
Lower middle income 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. 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 The Rich
Annual Income in 1996 Rs. Rs. 215,000 and more
1.2
2001
2007
Change
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%
164. 8
Total
180.7
199.2
21%
Source: NCAER
Socio economic classification
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 Less than 5-9 School Some Illiterat 4 yrs yrs of Graduat Postcertificat colleg e in schoo e graduate e e schoo l l
Skilled Unskilled
E2 E2
E1 E2
D E1
C D
C D
B2 D
B2 D
Shop owner
D
D
C
B2
B2
A2
A2
Petty trader
E2
D
D
C
C
B2
B2
B1
B1
A2
A2
A1
A1
A1
Employer ofAbove 10 persons
Below 10 persons
C
None Clerk
B2
B2
B1
A2
A1
A1
D
C
B2
B1
A2
A1
A1
D
D
D
C
B2
B1
B1
Supervisor
D
D
C
C
B2
B1
A2
Profession al
D
D
D
B2
B1
A2
A1
Senior executive
B1
B1
B1
B1
A2
A1
A1
Junior C C C B2 B1 A2 A2 executive 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: Skilledworkers
33%
Pettytraders
12%
Clerk/Supervisor Shopowners
37% 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 Education of chief wage earner
Type of House
Pucca
Semi-pucca
Kuchcha
R1
R2
R3
Professional degree GraduationP/ G
R1
R2
R3
College
R1
R2
R3
SSC/HSC
R2
R3
R3
Clas4 s -Clas9 s Utp colas4s Self-learning Illiterate
R3
R3
R3
R4
R3 R3 R4
R4 R4 R4
R4 R4
& 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.
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) YearA / ge
2006
2001
1996
Below 4 yrs
113.5
108.5
119.5
5-14 yrs
221.2
239.1
233.2
15-19 yrs
122.4
109.0
90.7
20-34 yrs
279.1
246.8
224
35-54 yrs
239.2
207.3
178.1
55 & above
118.7
101.7
88.7
Total
1094.1
1012.4
934.2
Consumption Trends Food Essentials
45.68%
Essential Services (water, power, rent, and fuels)
10.1%
Clothing
4.9%
Footwear
0.63%
Medicare
4.25%
Transport & Communication
14.51%
Recreation, Education, and Culture
Less than 4%
Home Goods
3.25%
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.
Analysis
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:
dem and of soap br ands
40 35 30
lux
25
dettol
percentage 20
lifebuoy
15
others
10 5 0 brands
2. Which pack u prefer to use? 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
Percentage
Family pack (3 in 1)
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. This data can be graphically explained with the help of the following bar graph: demand of packsf osoap
60 50 40 single pack
percentage 30
family pack (3 in 1 )
20 10 0 packs preferred by customers
1. Which tea u prefer to use? The reaction of people towards various TEA brands can be tabulated in the following manner:
Brands
Tata Tea
Percentage
32
Brooke Bond 28
Taj Mahal
Others
18
22
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. This data can be graphically explained with the help of the following bar graph:
demand of tea bran
35 30
percentag
25
tata tea
20
brooke bon taj mahal
15
others
10 5 0 brands
2. Which tea pack u prefer to use?
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 percentage
Sachet 48
Medium pack 32
Large pack 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: demand of tea packs
50 40 sachet 30 percentage 20
medium pack large pack
10 0 packs preferred by customers
3. Which tooth paste u prefer to use?
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
Percentage
27
35
22
Others 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:
demand of tooth past
35 30
percentage
25
pepsodent
20
colgate close up
15
others
10 5 0 brands
4. Which pack u prefer to use? 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 tabulated in the following manner: Tooth paste pack Percentage
Small pack
Medium pack
34
48
Family pack 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:
demand of packs of tooth paste
50 40 small pack 30 percentage 20
medium pack family pack
10 0 packs preferred by customers
5. Which detergent u prefer to use? The reaction of people towards various DETERGENT brands can be tabulated in the following manner: Brands
Surf
Rin
Tide
Others
Percentage
27
35
22
16
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. This data can be graphically explained with the help of the following bar graph:
demand of detergents
35 30 25
surf
20 percentage 15
rin tide others
10 5 0 brands
6. Which pack u prefer to use?
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 DETERGENT brands available in the market. However, the reaction of people towards various DETERGENT packs can be tabulated in the following manner:
Detergent packs Percentage
Sachet
Medium pack
43
27
Family pack 30
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, 43% consumers demand sachet packs. 30% consumers demand family packs. 27% consumers demand medium packs. This data can be graphically explained with the help of the following bar graph:
demand of detergent packs
45 40 35 30 25 percentage 20 15
sachet medium pack family pack
10 5 0 packs preferred by custom ers
7. Which shampoo u prefer to use? The reaction of people towards various SHAMPOO brands can be tabulated in the following manner: Brands
Clinic plus
Sunsilk
Head & shoulders
Others
Percentage
33
25
28
14
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%. This data can be graphically explained with the help of the following bar graph:
dem and ofsha mpoo
35 30 25
clinic plus sunsilk
20 percentage 15
head & shoulders others
10 5 0 brands
8. Which pack u prefer to use? 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 SHAMPOO brands available in the market. However, the reaction of people towards various SHAMPOO packs can be tabulated in the following manner: Shampoo packs Percentage
sachet
Small pack
23
32
Medium
Family
pack
pack
28
17
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, 32% consumers demand
SMALL PACK. 28% consumers demand medium pack. 17% consumers demand large packs. This data can be graphically explained with the help of the following bar graph:
dem and of shampoo packs
35 30 sachet
25
sm all pac k
20 percentage 15
mediumpack large pack
10 5 0 packs ref p err ed b y custom ers
9. Which biscuits u prefer to use? The reaction of people towards various BISCUITS brands can be tabulated in the following manner: Brands
Marie gold
Percentage
24
Good Day 38
Parle G 21
Others 17
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%. This data can be graphically explained with the help of the following bar graph:
dem and of biscuit s
40 35 30
m ari e gold
25
goodday
percentage 20
pa rle G
15
others
10 5 0 brands
10.Which hair oil u prefer to use?
The reaction of people towards various HAIR OIL brands can be tabulated in the following manner: Brands
Parachute
Percentage
37
Dabur
Dabur
Amla
Vatika
29
19
Others 15
In the survey, that the researcher conducted, it can easily be concluded that PARACHUTE, the product of MARICO 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.
This data can be graphically explained with the help of the following bar graph: dem and of hair oil
40 35 30
parachute
25
dabur am la
percentage 20
dabu r vat ika
15
others
10 5 0 brands
11.
Which pack u prefer to use?
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 tabulated in the following manner: Hair oil packs Percentage
Small pack 32
Medium pack 41
Large pack 27
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, 41% consumers demand medium packs. After that, 32% consumers demand small pack. 27% consumers demand large packs. This data can be graphically explained with the help of the following bar graph:
dem and of packshair of oil
45 40 35 30 25 percentage 20 15 10 5 0
sm all pa ck medium pack lar ge p ack
packs prefer red by custom ers
12.
Which cream u prefer to use?
The reaction of people towards various CREAM brands can be tabulated in the following manner: Brands Percentage
Pond’s 28
Fair & lovely 32
Ayur
Others
14
26
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, POND’s, another product of HUL, which holds 28% of the market share. This is followed by, other brands (EXCEPT, POND’s, 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. This data can be graphically explained with the help of the following bar graph:
demand of creams
35 30 ponds
25
fair & lovely
20 percentage 15
ayur others
10 5 0 brands
13.
Which coffee u prefer to use?
The reaction of people towards various COFFEE brands can be tabulated in the following manner: Brands
Bru
Nestle
Nescafe
Others
Percentage
26
32
32
10
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. This data can be graphically explained with the help of the following bar graph:
demand of coffee
35 30 bru
25
nestle
20 percenatge 15
nescafe others
10 5 0 brands
Data analysis Demographic profile of respondents
Gender Fig 1 Demographic data for genders
Age Fig
.2.
Demographic
100
data
considering
different
age
groups
57 33
50
6
3
1
0 Below1818-25 26-35 36-50Abov e 51
Percentage
Occupation Fig. 3. Demographic data considering their occupations
From the graph its clear that most of the impulse buying is being done by students which compromises of 51% of total 100 respondents 23% is for the services providing people and 20 % to the business oriente d person and at last only 6% comprises of house wife’s. Organised Retail
Major Players in Organised Retail
Types of Purchases Made in Organized Retail
Top 10 Reasons Why Consumers Prefer Organized Retail
Consumer Rating on Various Criteria Consumer Rating on Various Criteria
To Sum it Up Consumers prefer organized retail outlets for FMCG products that are bought in large quantities and for a larger duration of time. They also perceive it as a “family outing” and are drawn towards it due to its convenience, variety and special offers.
Unorganised Retail What Do Consumers Buy from Unorganized Retail
Top 10 Reasons Why Customers Prefer Unorganized Retail
Consumer Ratings for Various Criteria
Aspects That Consumers don’t like about Unorganised Retail
To Sum it up Consumers prefer unorganized retail outlets for items that have low shelf life and are consumed on a daily basis (such as vegetables). Logistical convenience and a sense of personalization are key drivers for consumers to continue shopping at unorganized retail outlets.
Further Scope
Conduct Consumer Decision Process, Buying Behavior, Impulse Buying.
Division of FMCG sector into Consumer Durables , Non Durables and Groceries
Large sample size for generalization of findings.
Conclusions
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 & cream’s category. HUL’s 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. 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.
Suggestions & recommendations The researcher would like to suggest the following points, so that the organizations can easily sell their products to their consumers: 1. However, the demand of a product is also affe cted by its life cycle. If the product is in the introduction stage, then it will definitely take some time to capture the market, because in the introduction stage, consumers are not much aware about the product. Therefore, it’s the responsibility of the organization to create awareness amongst the consumers. 2. They should adapt rigo rous marketing strategies, in order to sustain in the market. 3. There is immense competition in this sector. Therefore, the organizations should try to gain competitive advantage against their competitor’s. 4. They should try to reach as many people as possible.
5. For the organ izations that are not much popu lar amongst the consumers, should adopt Sales Promotion, as their marketing strategies. 6. Application of 4A’s has also becom e an important task for all the organizations. (*4A= Availability, Affordability, Acceptability, Awareness)
References
1. 2. 3.
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.
4.
Aithal K Rajesh, importance & growth of rural markets, (2004), pg no. 8-12.
5. 6.
Center for Monitoring Indian Economy (CMIE)
7. 8. 9. 10. 11.
National Council of Applied Economic Research (NCAER) Indian readership survey (IRS)
Statistical Outline of India (2001-02), NCAER
http://www.upgov.nic.in/upinfo/census01/cen01-1.htm Lucknow Development Authority http://www.naukrihub.com/india/fmcg/overview/
12.
http://www.naukrihub.com/india/fmcg/
13.
http://www.naukrihub.com/india/fmcg/consumer-class/
14.
http://www.naukrihub.com/india/fmcg/consumerclass/income/
15.
http://www.naukrihub.com/india/fmcg/consumerclass/socio-economic/
16. 17.
http://www.naukrihub.com/india/fmcg/consumer-class/age/
http://www.naukrihub.com/india/fmcg/consumerclass/geography/
Questionnaire
1. name: 2. occupation: 3. monthly salary: a. less than 10,000 b. 10,000 – 25,000 c. 25,000 – 50,000 d. More than 50,000 4. address: 5. phone no.: 6. which soap u prefer to use? a. Lux b. dettol c. lifebuoy d. others 7. which pack u prefer to use? a. single b. family pack ( 3 in 1) 8. which tea u prefer to use? a. tata tea b. brooke bond c. taj mahal d. others 9. which pack u prefer to use? a. sachet b. medium pack c. large pack 10.
which tooth paste u prefer to use? a. b. c. d.
11.
pepsodent colgate close – up others
which pack u prefer to use?
a. small pack b. medium pack c. family pack 12. a. b. c. d. 13.
which pack u prefer to use? a. sachet b. medium pack c. large pack
14.
15.
a. b. c. d.
which shampoo u prefer to use? clinic plus sunsilk head & shoulders others
a. b. c. d.
which pack u prefer to use? sachet small pack medium pack large pack
a. b. c. d.
which biscuits u prefer to use? marie gold good day parle - G others
16.
17.
which detergent u prefer to use? surf rin tide others
which hair oil u prefer to use? a. parachute b. amla c. dabur dabur vatika d. others
18.
which pack u prefer to use? a. small pack b. medium pack
c. large pack 19.
20.
a. b. c. d.
which cream u prefer to use? ponds fair & lovely ayur others
a. b. c. d.
which coffee u prefer to use? bru nestle Nescafe others
CONSUMER SURVEY QUESTIONNAIRE RETAIL CHAINS The objective of this survey is to collect tangible information about shopping in Organized and Unorganized Retail Sector. This questionnaire is being administered to people like you who have visited and bought products in Retail Stores and Kiryana Store. Please let us know your spontaneous response to the questions that pertain to your shopping experience in Retail Chains. All information provided by you shall be kept confidential and we shall only be publishing the outcomes. Please provide us your unbiased and frank opinions.
1. What is your monthly shopping budget?
0-2K >50K
2-5K
5-10K
10-20K
20-50K
2. What do you shop, how often and from where?
Daily Bimonthly
Vegetables
Weekly
Organized Retail Unorganized Retail
Monthly Grocery (Dal, Rice, Wheat)
Daily Bimonthly
Weekly
Organized Retail Unorganized Retail
Monthly FMCG(Biscuits, Soaps)
Daily Detergents, Bimonthly
Organized Retail Unorganized Retail
Monthly Daily Bimonthly
Oil
Weekly
Weekly
Organized Retail Unorganized Retail
Monthly Garments/Clothes
Daily Bimonthly
Weekly
Organized Retail Unorganized Retail
Monthly Utensils
Daily Bimonthly Monthly
3. Which retail chains do you visit often?
BigBazaar ShoppersStop
SixtoTen RelianceFresh
Westside
BigApple
Landmark
More
VishalMegamart
Spencer’s
Weekly
Organized Retail Unorganized Retail
Any other (Please specify) ________________________________ 4. Where do you shop for your daily needs?
RetailStore
KiryanaStore
5. Where do yo u shop for you r bulk needs /monthly needs ?
RetailStore
KiryanaStore
6. Does the environment of Retail Shop affect your buying behavior?
Yes
No
7. Why do you prefer to go for Organized Retail formats?
Price is Less
Near House
Good Service
Good Quality
Everything one Place Ambience
at
Long Relationship Aspiration
Good Offers
Large Variety
Self Service
Faster(takes less time)
Overall Experience 8. How much time do you spend on shopping on every visit in Retail Store?
0-30 Minutes 30-60 Minutes
1-2 Hour
3-4Hours
<5Hours
4-5Hours
2-3 Hours
9. How much time do you spend on shopping on every visit in Kiryana Store?
0-30 Minutes 30-60 Minutes
1-2 Hour
3-4Hours
<5Hours
4-5Hours
2-3 Hours
10. Kindly rate the below of an organized retail and unorganized retail based upon your preference?
Parameter
OrganizedRetail(rate) (1-Poor, 5- Best)
Price
1 5 1
Quality Variety Location Service Everything Place Offers
at
Relationship Ambience HomeDelivery Faster
one
5 1 5 1 5 1 5 1 5 1 5 1 5 1 5 1 5 1 5
2
3
4
2
3
4
2
3
4
2
3
2
3
4 4
2 2
3 3
2
4
4 3
2
4
3
2 2
Un Organized Retail(rate) (1-Poor, 5- Best) 1 2 3 4 5 1 2 3 4
4
3 3
4 4
5 1 5 1 5 1 5 1 5 1 5 1 5 1 5 1 5 1 5
2
3
4
2
3
4
2
3
4
2
3
4
2
3
4
2
3
4
2
3
4
2
3
4
2
3
4
11. Which o f these f actors affect y our im pulse b uying be havior at Retail Store ?
Demographics
1. Name:
______________________________________________________
2.Age:
15-20
20-30
40-50
3. Occupation:
30-40
50 & above
Student Govt. Employee Businessman
4. Income group: 5k-10k 40k-50k
5. Education:
Any other (Pls specify) _______________
10k-20k
20k-30k
30k-40k
50k & above
Student MBA
Private Employee
Graduate
Post-Graduate
Any other (Pls specify) ___________________
6. Number of Family Dependants: Nil
One
Two
Five
Any other (Pls specify)
7. Telephone Number / E-mail:___________________________________________
________________________________ Thank You______________________________
