Impact Of Brand Image On Buying Behavior Of FMCG Products With Special Reference To Mother Dairy India Limited

7/28/2019 Impact Of Brand Image On Buying Behavior Of FMCG Products With Special Reference To Mother Dairy India Limited

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PROJECT REPORT

On

Impact Of Brand Image On Buying Behavior OfFMCG Products With Special Reference To Mother

Dairy India Limited

FORTHE PARTIAL FULFILLMENT OF THE AWARD OF THE DEGREE OF

MASTER OF BUSINESS ADMINSTRATION

FROM GGS IP UNIVERSITY

DELHI

BATCH: 2011-13

SUBMITTED BY: SUBMITTED TO:

Prof. Preeti Kulshrestha

AARRMMYY IINNSSTTIITTUUTTEE OOFF MMAANNAAGGEEMMEENNTT && TTEECCHHNNOOLLOOGGYY,,

GGRREEAATTEERR NNOOIIDDAA ((UUPP)) 220011330066

Supervisor Certificate


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This is to certify that a student of Master of Business

Administration, Batch MBA07, Army Institute Management

& Technology, Greater Noida, has successfully completed

his project under my supervision.

During this period, he worked on the project titled Impactof brand image on buying behavior of FMCG products withspecial reference to Mother Dairy India limited in partial

fulfillment for the award of the degree of Master of BusinessAdministration of GGSIP University, Delhi.

To the best of my knowledge the project work done by the

candidate has not been submitted to any university for

award of any degree. His performance and conduct has been

good.

(Signature)

Name of the faculty

supervisor

AIMT-Gr. Noida

Date:


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TABLE OF CONTENTS

SUMMARY OF PROJECT 5

INTRODUCTION 6

RESEARCH OBJECTIVE 8

COMPANY PROFILE 9

LITERATURE REVIEW 16

CONSUMER BEHAVIOUR

DECISION PROCESS

BRAND BUILDING

BRAND EQUITY

BRAND POSITIONING

BRANDING OF COMMODITIES

PACKAGING AS A DIFFERENTIATING STRATEGY

FMCG PRODUCTS

RESEARCH METHODOLGY 43

SURVEY ANALYSIS 44

KEY FINDINGS 55

CONCLUSION 56

RECOMMENDATIONS 59

BIBLIOGRAPHY 60

ANNEXURE 61


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CHAPTER 1

SUMMARY OF PROJECT

This study aims to investigate how branding affect purchasing decision does. How much

consumers are prepared to pay for branded products, how important they consider price,

brand or other factors during their purchasing decisions. The study aims at comprehensive

literature review on branding, Brand loyalty, brand awareness, brand equity and brand

perceptions, price sensitivity and willingness to pay. The study has been undertaken with

special reference to Mother Dairy India Limited.

KEYWORDS: Branding, Consumers, Purchase Decision


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exclusively identifies the brand owner as the commercial source of products or services. A

brand owner may seek to protect proprietary rights in relation to a brand name through

trademark registration.

Brand energy is a concept that links together the ideas that the brand is experiential; that it is

not just about the experiences of customers/potential customers but all stakeholders; and that

businesses are essentially more about creating value through creating meaningful experiences

than generating profit. Economic value comes from businesses transactions between people

whether they be customers, employees, suppliers or other stakeholders. For such value to be

created people first have to have positive associations with the business and/or its products

and services and be energised to behave positively towards themhence brand energy. It has

been defined as "The energy that flows throughout the system that links businesses and alltheir stakeholders and which is manifested in the way these stakeholders think, feel and

behave towards the business and its products or services."[citation needed]Attitude branding

is the choice to represent a feeling, which is not necessarily connected with the product or

consumption of the product at all. Marketing labeled as attitude branding includes that of

Nike, Starbucks, The Body Shop, Safeway, and Apple Inc.

"A great brand raises the bar -- it adds a greater sense of purpose to the experience, whether

it's the challenge to do your best in sports and fitness, or the affirmation that the cup of coffeeyou're drinking really matters." - Howard Schultz (CEO, Starbucks Corp.)

The act of associating a product or service with a brand has become part of pop culture. Most

products have some kind of brand identity, from common table salt to designer clothes. In

non-commercial contexts, the marketing of entities which supply ideas or promises rather

than product and services (e.g. political parties or religious organizations) may also be known

as "branding".


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RESEARCH OBJECTIVE

To study and analyze the impact of brand image on buying behavior of FMCG products

with special reference to Mother Dairy India Limited.

To analyze the various products of mother dairy India limited.


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COMPANY PROFILE

MOTHER DAIRY

Mother Dairy - Delhi was set up in 1974 under the Operation Flood Programme. It is now asubsidiary company of National Dairy Development Board (NDDB). Mother Dairy sources

its entire requirement of liquid milk from dairy cooperatives. Similarly, Mother Dairy sources

fruits and vegetables from farmers/growers associations. Mother Dairy also contributes to the

cause of oilseeds grower cooperatives that manufacture/ pack the Dhara range of edible oils

by undertaking to nationally market all Dhara products. Mother Dairy is targeting a turnover

of about Rs 2,800 crore (Rs 28 billion) for the current financial year, a significantly higher

than last year's Rs 2,200 crore (Rs 22 billion). It has have been growing at 20 per cent for the

last three or four years

About 30 per cent of its revenues come from non-core milk business such as fresh and frozen

fruits The companys revenue from exports is around Rs 100 crore. Dhara, the vegetable oil

and food brand, contributes around Rs 370 crore to the revenue figure. Safal, the fresh and

frozen fruits, vegetables and juices brand add another Rs 300 crore.

It is Mother Dairy's constant endeavor to

a) Ensure that milk producers and farmers regularly and continually receive market prices

by offering quality milk, milk products and other food products to consumers at

competitive prices

b) Uphold institutional structures that empower milk producers and farmers through

processes that are equitable.

SAFAL

Fruit and Vegetable Unit was set up in the year 1988 by National Dairy Development Board,

an institute of national importance, a body corporate created by Government of India, with an

objective to provide a direct link between fruit and vegetable growers and consumers. The

unit has drawn on NDDB's three decades of dairy sector strengths in designing its state of the

art large and ultramodern central distribution facility to handle fresh and frozen fruit and

vegetable.

Safal, from Mother Dairy foods processing limited brings Indias finest fruit pulp and

concentrate as well as organic Fruit Products, fresh and frozen fruits and vegetables.


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329 specially designed modern retail outlets have been set up in and around Delhi to market

fresh and frozen fruit and vegetables, directly to the consumers. Each shop caters to large

number of customers, with a capacity to sell 1,600 kilos of fruit and vegetables a day. The

shops are equipped with electronic machines that automatically weigh the produce and print

item wise bills. Unit also manufactures products such as Jam, Squash, Ketchup etc at its

Ramgarh unit.

Safal, from Mother Dairy foods processing limited brings you Indias finest fruit pulp and

concentrates as well as organic Fruit Products, fresh and frozen fruits and vegetables.

The reason for Safals exceedingly high standards of quality, naturalness and freshness are

many.

Safal has the finest processing plant including a state- of- the- art processing plant in

Mumbai and BangloreIndia, developed with technical know-how and equipment of

Sasib Manzini Camaco SPS of Italy. Safal can process 50000 Mts of fruit per annum.

For organic, the select farms from which Safal products originate, are certified by

M/S ECOCERT International Gmbh in accordance with EEC Regulation 2092/91

Safals processing facility is ISO 9002, HACCP certified, a registered member of

SGF, Europe and participates in the voluntary control system to ensure quality andsafety.

HACCP and GMP quality systems are strictly followed in every stage of the process.

Safal Products do not contain any colouring, artificial sweeteners or preservatives,

and employ a unique seamless field to-consumer process that packs every last

ounce of natural taste, aroma and flavour into the products.

Safal pioneered the modern marketing of fresh and frozen produce through a chain of approx.

329 retail outlets served by a modern produce handling and processing facility.

Safal is supported by one of the most modern produce handling and processing facilities,

located at Mongolpuri, New Delhi which is designed to handle 1, 20,000 MT of fresh

produce annually.

A state-of-the-art plant at Mumbai in 1996 is equipped to produce tropical fruits pulps,

Pastes, juices and juice concentrated. Supported by the technical know-how and equipment of

CFT Manzini, Italy it is


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A 100% export oriented unit with a capacity of 15000 mts per annum.

Produces fruit pulp for export to various countries like U.S.A., U.K., Middle East,

Holland, Korea, Canada, Japan, Iran, Singapore, Germany, Russia

Safal has recently set up fruit and vegetable processing plant in Banglore which is one of the

best in India and has the capacity to handle 3500 Mts. of fruits per annum. This State- of-the-

art plant is spread across an area of over 60 acres and has the latest advanced process line

from CFT Manzini, Italy. This plant will surely add value to the horticulture produce for the

domestic and export markets.

To be closer to its international buyers, Safal has a marketing office in Rotterdam.

Backward Linkages-Selecting the Best

Safal unique emphasis on linking the farmer with the consumer means

that you can be assured of superior quality produce. Safal acts as the

link between the farmers and the consumer in a procurement process

that benefits both. The farmer gets the most remunerative price and the

consumer gets the best produce at a reasonable price.

The fruit is carefully plucked at the right stage of ripening to ensure superior quality products.

The Groups highly trained field staff works closely with the farmers to encourage modern

crop management techniques like the use of high grade seeds, scientific farming methods and

appropriate post harvest techniques. Precise quality standards are defined and as price is

linked to quality, the farmer has an incentive to improve his crop.

Produced by select farmers, grown from best quality seeds and managed with care, from

germination to harvest, the processing plant therefore receives the finest tropical fruit to

produce superior quality pulps, purees, concentrates and pastes. Mother Dairy has established

collection-cum-grading centres in the rural areas each covering a cluster of 8 - 10 villages.

The growers either supply their products individually or through societies and associations.

The entire procurement network is spread across the country and includes 144 direct

procurement sources, 13 procurement area offices, 111 growers associations and 8000

growers.

State-of-the-art Processing

The Safal plant is located in the heart of Indias finest tropical fruit growing region. An area

that produces an abundance of premium quality mangoes, bananas, papayas, fresh grapes and


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pomegranate. It is currently handling 1,00,000 MT fresh fruits and vegetables a year with

minimal post-harvesting loss. Mother Dairy is managing this by making use of 12 deep

freezing chambers of 900 MT each, five cold storage facilities 1000 MT each and a freezing

line (IQF) capable of handling 3.5 MT / hour. The central distribution facility (CDF) of

Mother Dairy, is also having seven ripening chambers of 175 MT each and a dispatch hall

and process hall of 2160 sq. metres and 3900 sq. metres area respectively for carrying out the

task of preservation of highly perishable fruits and vegetables

Ripening

The plant has custom- designed ripening rooms which are operated under controlled

temperature and humidity conditions to ensure the raw material is of uniform quality.

Extraction and refining

Extraction and refining of puree is done in a controlled atmosphere, using a turbo-refiner. An

ascorbic acid solution dosing system avoids product oxidation. Enzymes are inactivated by

heat exchangers to avoid discolouration and ensure high consistency. Puree concentration is

done to the desired brix strength using vacuum evaporators. Extraction and refining of puree

is done using state-of-the-art destoner and turbo refiner and the plant is equipped with

ascorbic acid, citric acid dozing system and aroma recovery plant. For banana puree,

equipments are having C02 dozing system. Plant is also having concentration plant for

manufacturing pulp/juice concentrate of desired total soluble solids under vacuum.

Sterilization

Before sterilization is heat exchangers, the product is homogenized using a pressure

homogenizer. The plant is equipped with state-of-the-art sterilizer, deaerator, metal detector

and homogenizer. Modern highly automated production machinery, supported by stringent

quality control practices at each step guarantees top quality produce. No colouring, artificial

sweeteners or preservatives are added. Our process from farm to market ensures that

every element of natural taste, aroma and flavour is sealed in. The unit has the facility for

canning and deep freezing pulp and concentrates. There is an IQF (Individual Quick

Freezing) process used in the frozen products, which helps in the freezing of each and every

grain individually so that frozen products retain their natural nutrition and flavour. The

product is filled in pre- sterilized aseptic bag with polyethylene in new MS drum or bag in

box for shipment


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The Mumbai plant produces mango puree/ pulp and concentrate, guava puree/pulp and

concentrate, banana puree/ pulp conventional, organic banana puree / pulp pomegranate juice

clarified / unclarified and concentrate of clarified juice, mango juice clarified and

concentrate, guava juice clarified and concentrate. mango blend, tropical fruit pulp blend.

Mumbai plant has entered in the production of single strength juices/ concentrates and

clarified juices of fruits like pomegranate of 5 6 tons/ hour capacity which is very close to

the orchards of pomegranate. Mumbai plant has the facility to store the product upto -18 deg

C. The product is available in 215 kg.net weight in aseptic bag in MS drum with polyethylene

liner.It may also be available in 20 Kg asceptic bag in box on request from the buyer

The Banglore plant produces red and yellow papaya pulp and concentrate, pink guava pulp

and concentrate, tomato paste. Banana, mango, guava, and papaya purees are extracted afterthe fruit is mechanically peeled and destined. Plant is equipped with the state-of-the-art

technology with modern atomization from CFT Manzini, Italy, with new cold extractor,

rotary vacuum filter, filter press and other modern equipments to obtain the clear juice of

pomegranate supported by the stringent updated quality control and practices at each steps

while processing of quality wholesome pomegranate to retain the characteristic flavour and

colour of the whole fruit in the final product.

Quality ControlKey to Success

We as an organization are committed to deliver highest quality product that is why at every

stage of the process we test the product for all physical, chemical, organoleptic and

microbiological quality parameters. Regular cutout tests ensure that the product is uniform

and meets every specification of our buyers.

The unit is a registered member of SGF, Europe, participating in the voluntary control

systems to ensure consumer safety and product quality.

The unit is ISO 9001:2000 and HACCP certified.

The products are kosher certified.

Hygienic conditions are strictly maintained in every part of the plant as per the good

Manufacturing practices.

All fruits waste is collected in a truck using screw conveyors and transported outside

for immediate disposal.


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Every entrance is equipped with air curtains and window/doors are made insect/fly

proof. Our forced air ventilation system maintains positive pressure throughout the

plant.

No colouring, artificial sweeteners or preservatives are added.

The modern and highly automated production machinery supported by stringent

quality control practices at each step guarantees top quality produce.

Safal ensure quality products for its buyers. That is why at each link in the value chain

from farm to plant during processing and in the after sales follow-up, it vouches for

the best.


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2. Ahmad Dr. Tauseef (2011)

Researcher has identified The Impulse Buying Behavior of Consumes For The

FMCG Products.

Findings:

His findings were as follows: In a research impulse buying was defined as anunplanned purchase and this definition can also be found in the research of Kollat andWillett (1967). In another research reported that impulse buying usually takes place,when a consumer feels a forceful motivation that turns into a desire to purchase acommodity instantly. Beatty and Ferrell (1998) defined impulse buying asinstantaneous purchase having no previous aim or objective to purchase thecommodity. Stern (1962) found that products bought on impulse are usually cheap.

It clearly indicate that there exists a weak association between consumer lifestyle,fashion involvement and post-decision stage of consumers purchasing behavior withthe impulse buying behavior including the attitudinal as well as behavioral aspects ofthe consumers buying behavior. Pre-decision stage ofconsumers purchasing behaviorestablished strong association with the impulse buying behavior of the consumers. So,it is established through this research that consumers purchasing products in the areaof plan their purchases, having shopping lifestyle related to planned purchases andtheir post-decisions are also not guilty. The pre-decision stage of the purchasingassociate these buyers with unplanned or impulse buying because these days stores arefull of variety of products and a buyer can easily get interested in purchasing a

product which appeals him or her while shopping the planned list of products and here

pleasure principle comes into play.

3. KulkarniDr. S.H. (july 2001)

(ASMs Institute of Business Management & Research)

Researcher has identified Study Of The Consumer Behaviour Towards FMCGProducts In Rural Areas.

Background of study:

According to him Things are changing fast now. The increasing literacy level andmedia explosion, people are becoming conscious about their lifestyles and about theirrights to live a better life. Brand consciousness is on the rise. This, clubbed withincreasing disposable income of rural households, has made the rural consumer moredemanding and choosier in his purchase behaviour than ever before. And the duskyvillage damsel has now learned to pine for a satin rose.

Findings:

His findings were as follows: Without a doubt, FMCG companies must focus productavailability in rural points. POS (both in primary & secondary) must be added


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prolifuratiously to foster visibility as there is a read y market for branded products.Organisations must focus on TV ads keeping the rural markets in mind, since a bigchunk of audience is influenced by the same. Organisations can no more becomplacent about their rural positions and must work on brand retention, sincemaximum people have an average life in the same.

People are becoming more and more aware about different brands available. Theywant to try new products. They are becoming brand conscious. Rural India has a

potential of $500-bn. Companies should try to explore rural market. There is a hugegrowth opportunity out there

4. . ChandraSekhar B.V.N.G (august 2004)

(Academic and Internship Programme Indian Institute of Management Baanagalore)

Researcher has identified Consumer Buying Behaviour and Brand Loyalty

Background of study:

According to him Indian Marketers on rural marketing have two understanding (i) Theurban metro products and marketing products can be implemented in rural marketswith some or no change. (ii) The rural marketing required the separate skills andtechniques from its urban counterpart. The Marketers have following facilities tomake them believe in accepting the truth that rural markets are different in so manyterms.

Findings:

His findings were as follows: In the study majority of the respondents are malecategories. Male members of the family are alone going to buy consumer products.Women are not interested in shopping and do not come out from their housesfrequently. Most of the families come under the agriculture category.Family income is very low. Product planning is very important to marketer to enterinto rural market. Non-Availability of brands is another reason which affects

purchasing decision. Packaging should be strong enough to stand rough handlingbecause of poor infrastructure facilities and pack should be small. Brand namesshould be simple, small and easy to remember and pronounce Effective IMC is

required to reach remote villages.


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CONSUMER BEHAVIOUR

Whatever else is may be in our lives-child, Parent, student, worker, jogger, or stamp

collector- we are all consumers, all of our days. We buy and use goods and services

constantly, to eat; to wear, to read, to watch, to play, to travel in, to keep us healthy, to make

us wealthy, and if not wise at least better educated, the act of consumption is therefore an

integral and intimate part of our daily existence. And that is there whether we have a lot of

money to spend or little.

In every long country of the world, billions of purchase of goods and services are made

every year. In the U.S. for example, the activity now accounts for most of the economy- some

$4 trillion, or about two third of the annual gross national product.

BUYING BEHAVIOUR

Consumer decision making varies with type of buying decision. The decision to buy

toothpaste, a tennis racket, a personal computer and a new car are all very different. Complex

and expensive purchases are likely to more buyer deliberation and more participants. Assael

distinguished four types of consumer buying behavior based on the degree of buyer

involvement and the degree of differences among brands.

COMPLEX BUYING BEHAVIOUR

Consumers engage in complex buying behavior when they are highly involved in a purchase

and aware of significant differences among brands. This is usually the case when the product

is expensive, bought infrequently, risky and highly self-expressive. Typically the consumer

does not know much about the product category and has much to learn. For example a person

buying a personal computer may not know what attributes to look for. Many of the product

features carry no meaning unless the buyer has done handsome research: 16K memory,

disk storage, screen resolution, and so on.

Complex buying behavior involves a three-step process. First the buyer develops beliefs

about the product. Second, he or she develops attitudes about the product. Third, he or she

makes a thoughtful purchase choice. For the consumers information gathering and

evaluation behavior the market needs to develop strategies.


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BRANDING OF COMMODITIES

In the past, in India, most commodities were sold in unbranded form. Today we notice the

reverse trend. It all started in early Nineties when foodgrains and spices were offered in

branded form. Vegetables followed this, and so did salt, sugar, etc. Today, more marketers

have jumped into the bandwagon. Say, Tata salt has used corporate name, oranges are

stamped with the growers level; tea s sold in special pack, design or names, common nuts and

bolts are packaged in cellophane with the distributors symbol, and automobile components-

spark plug, tyres, filter-bear separate brand names from the automakers. This craze for

branded commodities is also a result of the changed lifestyle of people, specially working

couples who have high disposable incomes and for whom quality and convenience now take

priority.

Marketers are flocking to the commodity market because of huge size they offer. For

instance, the branded rice market is at Rs. 1100 crore which constituted just about 10 % of

the rice market. This goes to show the immense opportunity. Generally speaking, marketers

have added value to commodities through branding, be it fertilizer, salt, spices, flour, rice or

sugar.

Hindustan Lever has achieved a thundering success when they differentiated its DAP

fertilizer under the brand name of paras. Similarly, Brooke Bond has branded frozen

vegetables with its Green Valley Brand. DCW Home product had modest success when it

first launched Captain Cook Salt and followed it up with Captain Cook Atta. Siel is into

sugar, NEPC has offered atta, maida, sooji and spices.


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Advantages

The brand name makes it easier for the marketer to process orders & track down

problems associated with the brand.

The marketers brand name & trademark provide legal protection( patent or copyrights)

of the unique features, which would otherwise be copied by competitors.

Branding gives the marketer the opportunity to attract loyal and profitable segment of

customers. Loyalty created over time offers the unique advantage of having assured

customer base against competition & greater control in their marketing programme.

It is wrong to assume that any commodity market is a homogeneous mass. Instead, the

task lies in skillfully identifying the different segments & understanding their specificneeds. Branding helps marketer to form suitable segmentation of the market. Different

brands can be aimed at different segments of customers.

In the long run it helps to build a strong association with the consumers as well as the

trade. By highlighting the same name, they could project their quality and image of the

company.

Last, but most important, to derive the first movers advantage and tap the huge market

potential.

CUSTOMERS BENEFITS

Branding of commodity products not only benefits the organization but it also helps the

customer.

1) Quality:- Customer will get the quality product from the wide variety of similar products.

a) The risk of getting adulterated product is minimized. For example unbranded masala

etc. may be adulterated which not only affects the taste of the food but also affects the

health of the person.

b) The manufacturing date is printed on the packet of branded commodity which helps

him to know how old the product is. For example the local grocery shop can give the

old Atta to the customer telling as fresh Atta but for branded customer can read the

manufacturing as well as expiry date.

2) Quantity:- In branded commodity products the customer is getting theright

quantityofproduct. The grocery shop cannot give him less amount.


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FMCG

Depending on the tangibility and durability found in an offering, products are

typically classified as service, durable and non-durable products. As the name

suggests, service has more of intangibles, whereas durable products offer both

tangibility and durability. Non-durable products are normally consumed fast and

hence purchased regularly. Here, consumers tend to spend the minimum of effort in

comparisons and buying the item.

Fst Moving Consumer Goods usually refer to non-durable product. Example include soft

drinks, toiletrics, grocery items, etc. A customer usually spends a minimum of effort of

procure them. However, much of astute marketing activities have evolved from this class of

product, where consumers show low involvement, get wider choice and allured by a host of

inducements.

Based on the prime factor behind their buying, fast moving consumer goods (henceforth

called FMCGs) can be further subdivided into three classes;

1. Staples. Goods that consumers purchase on a regular basis. For example, a buyer

purchases a toilet soap, detergent, sauce, toothpaste and biscuits ad and when stocks

reach critical level.

2. Impulse Goods. Good that are purchased without any planning are search effort.

These goods are usually procured due to external stimulus. Thus chocolates soft drink,

and potato chips are displayed in the Kirana store because shoppers may not have

thought of buying them until spotting them.

3. Emergency good. Emergency goods are purchased when that particular need arises.

The requirements for umbrellas arises during the rainy season or pullovers with the

advent of winter. Manufacturers of emergency goods will place them in many outlets

so as to capture the sale when the customer needs these goods.

Characteristics of An FMCG from Consumers Perspective

An FMCG is characterized by a few distinct factors. By its very name on is able to make

out the fact that an FMCG has a low shelf life. There are a host of other characterisitics

which have considerable implications for any marketer. These are now briefly described.


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reaching network in the rural markets. Little wonder then, that Lifebuoy is

the largest selling soap in the world!

4. High stock turnove. A characteristic feature of FMCGs is that they have a

very high stock turnover. This is a consequence of the fact that these

products are bought frequently and a t regular intervals. In other words, thee

goods have a short shelf life. Shopkeepers, therefore, a willing to trade in

these goods more readily because they find a high stock turnover, which

consequently allows them to rotate his capital a number of times in a month

or so. A pouch retailer, for example, can turn his capital over almost daily.

He buys his stocks in the morning and by the time he shuts at night, he has

regained his investment and more. The next day, the same money is

reinvested.

Growth Strategies for FMCG

We have already highlighted the fundamental characteristics of fast moving

consumer goods and their markets. We shall now consider the various growth

strategies followed by FMCG companies.

Typically, the success of an FMCG depends greatly on its marketing strategy.

Typically, a marketer purses a wide combination of strategies. For instance, when

prices are competitive the company would use an extensive distribution network,

design suitable advertising and sales promotion schemes from time to time.

However, what is it that can make an FMCG brand sell more than its competitor?

What makes some outstanding brands? How does a marketer convert a customer

from buying a generic washing powder to buying a particular brand, say Surf? Or

what makes Lifebuoy a symbol of health for over a century? Let us now discuss

various methods employed by the companies in an FMCG market.

1. Multibrand Strategy. A company often nurtures a number of brand in the same

category. There are various motives for doing this. The main rationale behind this

strategy is to capture as much of the market share as possible by trying to cover as

many segments as possible, as it is not possible for one brand to cater to the entire

market. This also enables the company to lock up more distributor shelf space.


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Take, for example, the strategy adopted by Hindustan Lever. They have introduced

many brands in the soaps and detergents market so that no segment is left untouched.

It has Dove in the Ultra-premium segment, Lifebuoy for the economy segment and

brands like Rexona, Liril, Lux and Le Sancy for the intervening segments. In the

detergents markets also, Surf itself is available in different forms- Surf Ultra, Surf

Easywash, apart from the generic product. It has the Surf range in the premium

segment, and Wheel for the economy segment. It has thus covered itself against any

form of attack and captured market shares in every possible segment.

Cadburys has also done something similar to their range of chocolates. It has Eclairs,

which is positioned in the economy segment, Break and Five Star, which cost less than

Rs. 10 each for popular categories and then it has chocolates with fruits and nuts,crispies and other exotic combinations which are slightly more expensive than the

plain milk chocolates. At the premium end, Cadbury offers bigger sizes of its dry

fruit filled range and it also manufacturers gift boxed containing big sized

chocolates. In its recent launch Perk was positioned as a snack-food. In this way, they

are covering many positions or usages of chocolates.

Another reason to adopt multiple brand strategy is to protect its major brand by setting

up flanked brands. Sometimes the company inherits different brand names in theprocess of acquiring other companies and each brand name has a loyal following. An

example of this strategy in the Indian context would be that of Coca Cola which

acquired Thums Up, prior to its entry into the market. Today they have a portfolio of

soft drinks, each with a substantial market share.

2 Product flanking. Product flanking refers to the introduction of different combinations

of products at different prices, to cover as many market segments as possible. It is

basically offering the same product in different sizes and process combinations to

tap diverse market opportunities. The introduction of shampoos in small sachet has,

for example, made them affordable to the lower segment of consumers who

previously could not afford to spend anywhere between Rs. 30 and Rs. 40 for a

standards bottle of a good shampoo. Although the sachets were initially launched to

guard the main brand surprisingly they have now become a big success among new

and small quantity users.


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Remote rural markets : Due to highly scattered market and poor transport

infrastructure, very few MNC companies/ organized players have been able to reach

out to remote rural areas and even small towns.

Low brand awareness enables local players to market their spurious look-alike brands.

Cost advantage : Lower overheads due to limited geography, family management,

focused product lines and minimal expenditure on marketing.

Critical success factors

FMCG business rests on the two pillars of brand equity and distribution network.

Brand equity

Brand equity refers to the intangible asset in the form of brand names. The consumer's loyalty

for a particular brand is due to the perception that the product

Has distinctively superior and consistent quality.

Satisfies his/ her specific needs.

Provides better value for money than other competing brands.

In FMCG products, brand equities are relatively stronger as the consumer is reluctant

to try unknown brands/ unbranded products as

Most of these products are for personal use.

It is often difficult to differentiate a product on technical or functional grounds and

therefore little reason to switch from a known brand.

A successful brand generates strong cash flow which enables the owner of the brand

to reinvest a part of it in the form of aggressive advertisement/ promotion to reinforce

the perceived superiority of the brand.

The worth of a brand is manifested in the consumers insistence on a particular brand

or willingness to pay a price premium for the preferred brand.


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CHAPTER 4

RESEARCH METHODOLGY

Descriptive Research was done which included surveys and fact-finding enquiries of

different kinds

Secondary data was collected from different sources such as brand equity, brandreporter, web sites, etc

Structured questionnaire was prepared so as to know consumer buying behavior

Graphs and diagrams were drawn out of the data analysis

Sample Size: 150 Respondents


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4. Factors you consider while purchasing a Mother dairy products

RANK THEM ACCORDING YOUR PRIORITY:

Packaging Quality Brand Shelf Life Price Availability

98 143 145 112 81 117

The

above bar graphs list the factors that matter the most in affecting the purchase decision of

respondents.

0

20

40

60

80

100

120

140

160

Packaging Quality Brand Shelf Life Price Availability

98

143 145

112

81

117


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3 Poor Planning. Error in judgment about target market/segment, in accurate

positioning often misses the opportunities.

4 Lack of Managment Enthusiasm. Management is, at times, complacent & avoids

entry into new area.

5 Lack of Organizations Expertise. Managing new products may call for expertise,

which an organization may sometimes lack.

6 Assigning inadequate resources to market development. Presuming that the

product is so good that it will sell on its own can prove to be wrong as special efforts

of market development are required.

7 Lack of Genuine Superiority. If a new product is merely & imitation of existing

product, but claims superiority with which the consumers do not quite agree, the

product will fail sooner or later.

8 Under Estimating The Competition. Underestimation of competitors capabilities

& possible reactions is at times the cause of product failure. If the product launch is

9 based on a lower cost of production & the assurance of good channel support. It may

face its match by competitors.

10 Poor market Research. The wrong reading of consumers mind & arriving at an

optimistic forecast of market demand is sometimes the reason for product failure.

11 Poor timing of Launch. Too early or too late an entry into the market is also a

common cause of failure.


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CHAPTER 8

BIBLIOGRAPHY

Kevin Lane Keller (2004), Strategic Brand Management, 2nd edition, Pearson Education,

New Delhi

Consumer Behavior, 6th Edition, by Lean G. Sehiffman and Leslic lazan Kanuk.

Consumer Behavior, 6th Edition, by Hawkins, Best ad Coney.


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CHAPTER 9

ANNEXURE

QUESTIONNAIRE

(Tick whichever applicable)

1. Which of the following Mother Dairy brands/products are you aware of?

Milk Curd

Ice-cream Juices

Vegetables Frozen Vegetables

Ghee Lassi

Butter Pickles

Jam Vegetable Oil

Cheese

2. How often do you consume Mother Dairy Products?

Daily Occasionally Never

3. How often do you purchase the Mother Dairy products?

Daily Once a week Fortnightly

Milk Products

Vegetables Frozen Products Jam, Pickles, etc

4. Factors you consider while purchasing a Mother dairy products


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Impact Of Brand Image On Buying Behavior Of FMCG Products With Special Reference To Mother Dairy India Limited

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