chapter no: 06 summary of findings &...

A Study of Branding Strategies of Indian Brand In Personal Care FMCG with special Reference to Maharashtra. 2015

Chapter No: 06 Finding, Conclusion Suggestion. Page 241

Chapter No: 06 Summary of findings &

Conclusion:

6.01 Introduction:

6.02 Summary:

6.03 Findings:

6.04 Conclusion:

6.05 Testing of Hypothesis:

6.06 Suggestion:

6.07 Further Scope of Research:

6.08 Managerial Implication:


Chapter No: 06 Finding, Conclusion Suggestion. 42

6.01 Introduction: The Indian FMCG sector is the fourth largest sector in the economy

with a total market size of Rs 167,100 Crores. The market is estimated to

grow to US$100 billion by 2025, According to market research Firm

Nielsen. 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 labour costs and presence

across the entire value chain gives India a competitive advantage. Also,

increase in the urban population, along with increase in income levels and

the availability of new categories, would help the urban areas maintain

their position in terms of consumption. At present, rural mindset is open

to consumption of newer, more contemporary food categories and as a

result, drives consistent growth. Rural India accounts for more than 700

Million consumers or 70 percent of the Indian population and account for

40 percent of the total FMCG Market.

The Indian rural Market is a large market space with very low

organized player Penetration. Across the globe, the Indian rural market is

probably the single largest “unit “of opportunity. Family income is one of

the variables which should be considered while designing the strategies.

There is significant difference between consumer preference and product

utilization. It is found that consumer deal proneness differs according to

marital status. Furthermore, it is also proved that married are more deal

prone compare to unmarried. Added to it brand equity perception differs

according to employment categories and attitude of costumer towards

brand. Overall, on international brand with scheme are Preferred.



6.02 Summary:

In the First chapter Introduction is made about brand its success

and development stages of Branding strategies through different Figures

and charts .Concentration is made on strength weakness, Opportunities

and threats of Indian FMCG in personal care through strategic objectives

and strategic effectiveness is studied.

Second chapter is concerned with a literature review of Branding

strategies of Both Indian as well as Multinational Internal and external

Analysis is studied some Alternative Analysis is also done. Focus is given

on managing a brand overtime of reinforcing Brand. Studied the effect of

Indian as well as Multinational Brand Personal care FMCG. Further

studied the Advertising impact on FMCG for sustainability.

The Third Chapter Research methodology where primary data is

collected through Questionnaire method for different Hypothesis to be

tested, Where research is designed for sampling Purpose Three Indian

Nirma ,Godrej and Marico as well as three Multinational Brand -Colgate

& Palmolive Ltd,Reckist Benckiser and Hindustan Unilever Ltd,is

considered for the purpose of study.

In Fourth Chapter Branding strategies in India are studied, Growth

of FMCG, Brand equity Perception and Frame work of Aaker equity is

studied. The review of five district of Maharashtra under study is

Aurangabad, Jalna Parbhani Nasik, and Ahmednagar is studied to know

the geographical area and it’s Importance for research purpose.



The universe of the study consists of all FMCG consumers in the

state of Maharashtra with sample size of 500 from Above district. The

convenient sampling Method is used for the purpose of study .The period

of the study is from 2010 to 2014 only.

While studying the primary data it was found that Indian people

are aware of FMCG in personal care. The marketing strategies of

multinational are effective than Indian FMCG in personal care. While

line extension and Brand extension are effective than new brand

strategies. The Chi-square test is used here to test the Hypothesis.

It is also seen that Indian consumer is scattered and many a time’s

different Ayurvedic Product Herbs or local Brands are used for personal

care FMCG traditionally in India. In Aurangabad it is seen that

Hindustan Lever ltd has a greater penetration than that of Indian Personal

care FMCG Godrej & Marico. The local brand and Ayurvedic also has an

impact on customer due to mouth Publicity and Advertise through local

Newspaper. While studying throughout Maharashtra it was found that

though Multinational companies had a greater penetration through brand

extension and line extension.

The Indian personal care FMCG companies though started late but

are sustaining In Indian market through different strategies of brand

extension, new Innovation and also through line extension. The research

can be further studied both quantatively and qualitatively in coming years

in Indian personal care FMCG .Also the emerging Ayurvedic Products

and customers loyalty towards brands . As purchasing power of Rural as

well as urban is increasing at rate of 17 percent per year. As people are



becoming more concern about their Health & Hygiene factors. As it

prevents the various epidemic diseases and thus increase the standard of

living of Indians.

6.03 Findings:

All samples 500 Number of Respondent were authentic Collected from

Five District of Maharashtra it was found that 51 percent were in the age

above 31 and 43percent were in age group of 21 to 30 Years.

Gender purpose both male and female is equally considered.

Occupational status the Employed were 150 respondents highest then

Professionals, student and housewife later. Out of the 500 respondent 26

percent were Professional and 30 percent were Employed in various

organizations.

The Educational background of 218 respondent highest are under

graduates. The 80 percent respondent were Qualified cumulatively and

43.6 percent were under graduate.

The family size statistics shows that there is nuclear family where number

of member in family is up to 4 of 250 respondents.

Marital status found was unmarried greater than married.

It was found that maximum respondent up to 230 use mix brand of

personal care FMCG. When we consider of liking brands it was found

that there is a mix response from respondents 48 percent highest as in



some brand multinational has a greater penetration than that of Indian

brands. Comparatively Indian brand liking is 26 percent higher than that

of Multinational which is 20 percent.

It was found that maximum 300 respondents use Kirana shop as

preference of purchasing than that of 120 in malls. It was found that

almost 60 percent respondent were comfortable in purchasing products

from Kirana stores as it found them friendly and easy reachable.

It is found that majority Reason for selecting Hair oil Brand by

Multinational and National brand user consumer during respondents are

enhance texture and quality, strengthen the structured damaged hair. We

see here that Multinational HUL has greater penetration than that of

Indian Marico in Hair oil they have different brands like sunsilk and

Dove with extended one as proved ahead. While in other product like

Shampoo, Skin care, Hand wash and Soap Multinational are ahead of

Indians brands as they are new in some cases.

Here we found that the reason for loyalty of consumer is seen major

towards Multinational Brand of HUL and CP(I) Ltd in all products as

Indian personal products are either new or people are not loyal more than

one year except in the case of Marico Hair oil .

Here we found that the awareness of consumer is major through

Advertisement & mouth publicity compare less towards reference group

Dermatologist and Doctor.



Reasons for major selecting different product by consumer during

respondent.

Table No: 6.01 Reasons for Major selecting different product by

consumer during Respondent

Product

Reason for selecting

Shampoo

The shampoo by consumer is majorly hair fall

Control and Nutritive Solution.

Hand wash

Hand wash by consumer is Oil clear Pure & gentle

and color Changing rest is there for penetrating in

market deep segment wise.

Soap

The soap is selected majorly by consumer to

Enriched with Natural Extract & Beautiful Florala’s

also sensitive to Skin.

Skin Care

Majorly for Touchable smooth to skin.

Hair oil

Affordable and Ayurvedic

The consumer selects the Hand wash soap Skin care because they

fill that it keeps them healthy and nourished.



The development of FMCG Market in Maharashtra is facilitated by

the economic viability of the State. It is one of the richest states of

India with one of the highest per capita income .So there is a gap of

huge demand and supply of Personal care Brand in FMCG.

The developing cities of Maharashtra have been one of the important

driving forces for the development of FMCG market and Mall

Concept and Brand culture helps to grow Personal Care FMCG sector.

It is found that there is substantial increase in the rate of

Consumerism in Maharashtra in recent years and such that the trend is

still growing with the increase in income.

It was unfortunate that very few respondents had awareness about

different consumer protection Acts and also whoever knew it was

difficult to recall which had became again a serious concern for the

marketers.

While the rural market certainly offers a big attraction to the

marketers, it would be naïve to think that any company can enter the

market without facing any barriers and walk away with a sizeable

share.

Distribution is the most important variable in the marketing plans of

most consumer goods manufacturers, because managing such a

massive sales and distribution network is in itself a huge task.



The wholesaler is the most important source of information for the

retailer. Also it has most influence on the retailer. The marketer would

try their best to motivate the wholesaler to get the retailer in the rural

market to stock his company’s products, particular the newer products

either by dumping for penetration in the Market.

FMCG shopping is still dominated by male in both urban and rural

area.

There are some unorganized distribution channels in the rural markets

i.e. Mandi and weekly markets. These can be studied to analyze their

impact on sales of branded products.

Most of the rural customer could know differentiate between original

and duplicate brands so they switched over to other brands if duplicate

ones were found.

For decades, foods items have been the most widely distributed

FMCG products in the country. But the rule of thumb is changing

Indians are more likely to find more personal care products than food

in a shop.

Major unbranded customer are shifting towards Branded one due to its

easy availability and affordable price at the nearest Kirana shop or

departmental stores.



6.04 Testing of Hypothesis:

Testing of The hypothesis by Chi- square Test at 5 percent level of

significance:

Table No: 6.02 Hypothesis testing 5 percent Level:

Sr No

Hypothesis Ho

Accepted/

Rejected

Type of

Error

First People are not aware of Branded

Indian FMCG In personal care

Rejected I

Second A new Brand strategy is effective

than line extension

Rejected I

Third

A new Brand strategy is effective

than Brand Extension.

Rejected I

Hair oil Multinational

Hindustan Unilever Ltd (HUL)

Accepted II

Hair oil National

Marico

Rejected I

Shampoo

Multinational

Rejected I

Hand wash Multinational Rejected I

Fourth The Marketing strategy of Indian

brand FMCG in personal care are

effective than Multinational FMCG

Rejected I



6.05 Conclusion:

It is concluded that Multinational Brands are penetrated more than

that of Indian Brand in personal care FMCG.

The Branding strategies of multinational are effective than that of

Indian brands of Personal care FMCG in Maharashtra state.

The Indian customer is aware of the product of Personal care

FMCG.

The multinational brand is having advantage of exposure of

Multinational market.

The Indian Brand has old Technology than that of Multinational

Brands for production and as a result the production cost goes high

and profit decreases overall.

The Advertising effect of Multinational are more effective and

result oriented than that of Indian Brand in personal care FMCG as

they can afford celebrities both local as well as National. They can

sustain for longer time as they have variety of product with

segmentation and special premium brand required for penetration

among different class and customer of different income group.

It is concluded that the customer are aware of the product regarding

its Hygiene Factors but not ready to compromise on price level.

That’s why many Indian Personal care FMCG like Nirma, who

produces soap and diversify its business further into Hand wash,



Hair oil, skin Care but could not success fail due to its having a

brand of producing Detergent powder at low affordable cost. So

people also accept the other products in same Brand at affordable

price which they cannot afford.

The sustainable strategy is being develop by some Indian Personal

care FMCG Like Marico By having Farmers participation in the

production of coconut at Kerala which is major raw material for

Hair oil Product.

The Indian personal care FMCG should revised its product under

different strategies to sustain and increased its market share by

Innovation in different production; Marketing strategies compare to

Multinational and try to catch the wave of customer mind.

It is concluded that Indian Customer loyalty in personal care

FMCG difficult to change as frequently change as in western

countries due to the exposure of Multinational Market. As we see

the parachute of Marico is penetrated is trusted by Generation to

generation. Similarly In the soap Multinational HUL is trusted

from generation to generation.

The buying behavior of Consumer is changing especially rural

areas as their purchasing power is increasing due to change in

Income level and literacy.



The Investment by Indian personal care FMCG is increasing after

2010 as special central as well state incentives are given to them to

sustain in Indian market.

The contract manufacturing operating rule is helping to enter and

quick the market very easily as trend changes.

Extensive distribution network and logistics is helping to sustain

and penetrate in market of Personal Care FMCG.

The low entry barriers in terms of low capital investment, Fiscal

incentives from government and low brand awareness in rural areas

have led to the mushroom of unorganized sector which hamper the

Branded product as they cost high compare to these local one.

The rise in per capita consumption, with improvement in incomes

and affordability and change in tastes and preferences which

increase the demand of Personal care FMCG.

The rural Market is extremely price sensitive small sachets were

introduced in almost all FMCG which are giving good returns in

Hair oil, Shampoo and skin care too.

The FDI policy and other central policy for personal care FMCG

are boosting the investment and new entries both Indians as well as

Multinationals.



The Quantative restrictions were removed which results into the

boom in FMCG market through market expansion and greater

product opportunities.

The FMCG giant HUL initiated “project shakti” to spur growth

and increase the penetration of its products in rural Indian while

changing lives and boosting Incomes.

The demand supply gap is more as due to innovation and new

Brand launching customer is always ready to taste the product.

The Indian Market is dominated by Ayurvedic Personnel care as

well as Local products at affordable and easy availability.

The GDP growth will boost the FMCG personnel care market in

coming years so heavy investment in this sector yet to come.

The branding evolution helps to read the mind set of fast changing

consumer.

Consumer is made aware of the product through fairs and festival

and cinema van shop which is bringing product towards customer

closely.



6.06 Suggestion:

A wide study is made on branding strategies of Indian and

Multinational personal care product and it was found that Multinational

has great penetrating market than Indians brands also Indian brands are

few in number compare to Multinational to sustain and grow the

researcher make below suggestions.

The following are the suggestion made by Researcher:-

More Indian personal care brands should be created.

The concentration should be done on local market and strategies should

be focus on local as well as national consumer depending upon the

geographical area.

Increasing demand of consumer to Ayurvedic with no side effect

advertising will give a challenge to local brand as well as National and

Multinational so product is to be design as per need and satisfaction of

consumer.

The brand Image should have local Ambassador as well as celebrities

for advertising Effect.

The brand strategies should be consumer oriented.

The use of branded product awareness program should be launched

through various media and group activities.



The Hygienic effect of branded product should be concentrated and taken

care off.

The Government should encourage Indian companies by giving some

relaxation in tax at beginning three years to sustain in market and

compete with Multinational who has large volume compare to new

entrants.

Reduce excise duty from 12.5percent -20 percent on industrial oils with

FFA of 20percent or more when imported for manufacture of soaps,

industrial fatty acids and fatty alcohols.

Reduce customs duty from 15percent to 10percent on palm fatty acid

distillate (PFAD), industrial mono-carboxylic fatty acids and fatty

alcohols.

Branded Indian Personal care should penetrate with different strategies

of sustaining and don’t give up in short runs they should think of long

term plan.

Concentration should be given on sale’s promotional activities by Indian

brands.

The success of brand should be measured from time to time and various

short as well as long term strategies should be adopted for sustaining in

market.

Brand repositioning should be done to attract customer back in the

Fold.



Voluntary admits consumer fillings.

Objectively evaluate appropriate CRM/MSA tools to meet the needs of

the sales force.

Take sales operations function to the next level.

Maintain the volume Growth increasing value boost margin and

Increase the Market share.

Launch premium products take care of its brand success.

Do innovation and give maximum preference to need and wants of

Organized and unorganized consumers patterns.

To continue thrust and higher allocations to social and developmental

programs especially MGNREGA.

For development and sustainability in the local market understand local

social responsibility and contribute to society in terms of charity or funds

for social uplift meant of weaker section of society through Education,

Medicine or building infrastructure facilities.

For sustainability for the raw material make farmers participation through

group building or Profit sharing for consistency in supply of Raw

material.



Indian Brand should increase limitation of local, try to make it

Multinational Brand by Exploiting Market, with available constraints.

Constant watch should be there on market shifts and necessary strategies

should be adopted as per need of the hour to sustain in market.

If the Finance Minister increases the income tax slab, focus more on the

rural Development and implement the GST. The FMCG sector has a good

growth.

People should be encourage and educated for Hygiene of personal care

through social activity and mass media.

The Indian FMCG Personal Care should increase the more company

outlet to face Competition with MNC for Penetration in the Market.

Innovation should be continuous process and R& D facilities should be

developed by Indian FMCG endogenously.

The more focus should be given up on newly open rural market and

product should be made Customer oriented and affordable easily.

Corporative sectors should be involved in reaching out to the customers.

The customer is looking for what he needs ‘is fast getting replaced with

what he wants’.



The rising income of Indian consumers has accelerated the trend towards

“Premiumisation” or up trading this should be cached by the Indian

Personal Care FMCG to accelerate growth.

The upper middle class wants to emulate the rich and up trade towards

higher priced products which offer greater functional benefits and

experience compared to products for mass consumption.

Due to liberal policy of government Indian companies continuously

seeking opportunities internationally and also have an access to more

global Brands, products and operating profits.

Increased and relevant functionality coupled with lower cost enable

technology development to drive significant benefits and allow

companies to address the complex business development.

The growing modern trade will compete with existing traditional trade

and offer both a distribution channel through its cash and carry model as

well as more avenues to interact with the customers so focus should be

given to modern trade.

The changing profile and mindset of the customers has shifted the

thought to “Value for money”, one from “Money for value”. The profile

and mindset should be concentrated to sustain in market.

The Indian FMCG should concentrate on High stock turnover for better

penetration and should stop dumping unnecessary.



The well Known brand like Marico and Nirma should be taken care off

in R & D and other functional Strategies require at grass root level.

The Consumer is giving up of tasting the new products frequently so

Indian FMCG personal care should concentrate on quality, Value, Price

and so on.

6.07 Further scope of research:

Fast moving consumer goods will become Rs 400,000-crore

industry by 2020. A Booz & Company study finds out the trends that will

shape its future. Considering this, the anti-ageing skincare category grew

five times between 2007 and 2008. It‘s today the fastest-growing segment

in the skincare market. Olay, Procter & Gamble‘s premium anti-ageing

skincare brand, captured 20 per cent of the market within a year of its

launch in 2007 and today dominates it with 37 per cent share. Who could

have thought of ready acceptance for anti-ageing creams and lotions some

ten years ago?

Consumption patterns have evolved rapidly in the last five to ten

years. The consumer is trading up to experience the new or what he

hasn‘t. He‘s looking for products with better functionality, quality, value,

and so on. What he needs’ is fast getting replaced with what he wants’. A

new report by Booz & Company for the confederation of Indian Industry

(CII), called FMCG Roadmap to 2020: The game changers, spells out the

key growth drivers for the Indian fast moving consumer goods (FMCG)

industry in the past ten years and identifies the big trends and factors that

will impact its future.



It has been estimated that the FMCG industry will grow at least 12

per cent annually to become Rs 400,000 Crore in size by 2020.

Additionally, if some of the factors play out favorably, say, GDP grows a

little faster, the government removes bottlenecks such as the goods and

services tax (GST), infrastructure investments pick up, there is more

efficient spending on government subsidy and so on, growth can be

significantly higher. It could be as high as 17 per cent, leading to an

overall industry size of Rs 620,000 Crore by 2020.

Abhishek Malhotra (2010) told that the Indian GDP per capita is

low but many Indian consumer segments which constitute rather large

absolute numbers are either close to or have already reached the tipping

point of rapid growth. The sector is poised for rapid growth over the next

10 years, and by 2020, the industry is expected to be larger, more

responsible and more tuned to its customers.

In the following areas the researcher who is interested to do

research in this area may take following topics for further research.

1. The present study is restricted to Maharashtra it can be studied further by

identifying different state in India.

2. The comparison of penetration of Indian and Multinational personal care

FMCG in rural areas.

3. The branding strategies of Indian Personal care to sustain in Indian

Market share.



4. The problem and challenges of Indian personal care FMCG in India.

5. The unbranded un-organized Customer shifting towards branded one.

6.08 Managerial Implication:

The Indian FMCG sector is the fourth largest sector in the economy

with a total market size of Rs 167,100 Crores.

Following are the Managerial Implication suggested by

researcher:

Increase competition between organized and unorganized sector by

innovation and launching premium products.

Exploit the availability of key raw material.

Manager should take advantage of cheaper labour costs presence

across the entire value chain.

Concentrate on income level rise of both urban and rural market.

Importance should be given to brand Image Local as well as

national depending upon geographical area.

Brand personality should be given importance through brand

image.



Brand success should be measure for short term as well as long

term and different strategies are adopted to sustain in market.

Decision of brand repositioning should be taken as per Indian

market and changing scenario.

The profit margin can be increased by increasing volume and

penetrating in market with effective sales force.

Companies should develop some policies concern with market,

social in philanthropy to increase the market share.

Indian brand companies instead of following or waiting for

revolution should take leadership of market by Innovation in

product improving, selling technique and decision capacity of

implementation.

Manager should exploit the policies avail by Government for

FMCG sector from time to time.

Should make different strategies for different market according to

product and its utility.

Price rate of unit should be maintained low as per completion

With Multinational.

Inventory of goods be control by proper distribution Channel

Network.

chapter no: 06 summary of findings &...

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