A

Comprehensive Project Report

On

A Study On Effectiveness Of Advertising In FMCG Industry

Under the Guidance ofDr. Arti Trivedi

In partial Fulfillment of the Requirement of the award of the degree of

Master of Business Administration (MBA)

Offered By

Gujarat Technological University

Ahmedabad

Prepared by

Sahil Patel (137680592119)

Hitesh Arya (137880592045)

MBA2013-15 (Semester - III)Submitted to

Institute Code: 123

SHRI CHIMANBHAI PATEL INSTITUTE OF MANAGEMENT AND RESEARCH

DECLARATION

We, Mr. Dhaval A. Radadiya and Ajay A. Kabariya hereby declare that the Report for Comprehensive Project entitled A Study On Effectiveness Of Advertising In FMCG Industry is a result of our own work and our indebtedness to other work publications, References, if any, have been duly acknowledged.Place:

(Sahil Patel)

Date:

(Hitesh Arya)

INSTITUTES CERTIFICATE

This is certified that this Comprehensive Project Report Titled A Study On Effectiveness Of Advertising In FMCG Industry is the bonafide work of Mr. Sahil Rameshbhai Patel (Enrolment No-137680592119) & Hitesh Subhash Arya (Enrolment No-137680592045), who carried out the research under my supervision. I also certify further, that to the best of my knowledge the work reported here in does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate. (Dr. Arti Trivedi)

(Director)

PREFACE

Project work is an essential part of the syllabus of MBA program. In project work student has to use his or her various skills like analytical skills, communication skills, writing skills, etc.

Practical training helps an individual to develop managerial abilities. Thus, training acts as a bridge between theories and actual practice implication. Thus, it helps an individual to know the actual uses and implication of the theoretical knowledge acquired in the classroom.

Conceptual studies are always observed during the project study. It gives us the complete understanding of the real life situation and happenings in the real world.

From the practical point of view a project plays an important role for the student. Before we present this project, we would like to say that this is a mirror image of whatever we have observed and have come through during our project work.

It gives us immense pleasure to present this project report. It is of great opportunity for a management student to get broad exposure to the corporate world during training for only one and a half months of period.

We tried our level best in all the ongoing and live projects on direct selling to learn and Gain new things that add value to our practical knowledge. And that was a great learning experience for us.ACKNOWLEDGEMENT

We owe our deepest thanks to great many people who helped and supported us during the writing of this project.

We express our sincere thanks to respected Dr. Arti Trivedi, Director of Shri Chimanbhai Institute of Management and Research and our mentor as well, for giving us an opportunity to have a real-time exposure of practical work direct us for the project, for guiding and correcting us throughout the project. He has taken pain to go through the project constantly and make necessary corrections as and when needed.

We express our deep sense of gratitude to our entire respondent who helps through giving a satisfied answer of our study, and our institute as well who gives us chance to gain such a wonderful experience of practical knowledge.

We would also like to thank our Institution and our faculty members without whom this project would have been a distant reality. We also extend our heartfelt thanks to our family and well-wishers. We also thankful of those all people who help us directly or indirectly in completion of this project.

TABLE OF CONTENT

SR. NO.CONTENTPG. NO.

PART 1: GENERAL IMFORMATON

1Introduction of direct selling7

2Overview of world market8

3Overview of Indian market10

4Growth of the direct selling industry11

5About major companies in the direct selling industry12

6Product profile 13

PART 2: PRIMARY STUDY

7Literature review 15

8Background of study18

9Problem statement of the study18

10Objective of the study19

11Hypothesis 19

12Research mythology20

INTRODUCTION

The Fast Moving Consumer Goods (FMCG) industry in India is one of the largest sectors in the country and over the years has been growing at a very steady pace. The sector consists of consumer non-durable products which broadly consists, personal care, household care and food & beverages. The Indian FMCG industry is largely classified as organized and unorganized. This sector is also buoyed by intense competition. Besides competition, this industry is also marked by a robust distribution network coupled with increasing influx of MNCs across the entire value chain. This sector continues to remain highly fragmented.

Industry Classification

The FMCG industry is volume driven and is characterized by low margins. The products are branded and backed by marketing, heavy advertising, slick packaging and strong distribution networks. The FMCG segment can be classified under the premium segment and popular segment. The premium segment caters mostly to the higher/upper middle class which is not as price sensitive apart from being brand conscious. The price sensitive popular or mass segment consists of consumers belonging mainly to the semi-urban or rural areas who are not particularly brand conscious. Products sold in the popular segment have considerably lower prices than their premium counterparts.What are Fast Moving Consumer Goods (FMCG)?Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are those that get replaced within a year. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged food products, soft drinks, tissue paper, and chocolate bars.

A subset of FMCGs is Fast Moving Consumer Electronics which include innovative electronic products such as mobile phones, MP3 players, digital cameras, GPS Systems and Laptops. These are replaced more frequently than other electronic products.

White goods in FMCG refer to household electronic items such as Refrigerators, T.Vs, Music Systems, etc.

In 2005, the Rs. 48,000-crore FMCG segment was one of the fast growing industries in India. According to one study, the industry grew 5.3% in value between 2004 and 2005.

The Indian FMCG sector is the fourth largest in the economy and has a market size of US$13.1 billion. Well-established distribution networks, as well as intense competition between the organized and unorganized segments are the characteristics of this sector. FMCG in India has a strong and competitive MNC presence across the entire value chain. It has been predicted that the FMCG market will reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The middle class and the rural segments of the Indian population are the most promising market for FMCG, and give brand makers the opportunity to convert them to branded products. Most of the product categories have potential for growth is huge.

The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid urbanization, increased literacy levels, and rising per capita income.

The big firms are growing bigger and small-time companies are catching up as well. List of FMCG Companies in India

ALPHABATESCOMPANIES

BBritannia

CColgate Palmolive(India) ltd.

DDabur India Limited

EEmami Limited

GGlaxoSmithKline Consumer Healthcare Limited

Godfrey Phillips India Limited

Godrej Consumer Products Limited

HHindustan Unilever Limited

IITC Limited

MMarico Limited

NNestle India LimitedNirma Limited

PProcter & Gamble Hygiene and Health Care Limited

RRadico Khaitan Limited

TTata Tea Limited

UUnited Breweries Limited

HYPERLINK "http://info.shine.com/company/United-Spirits-Limited/817.aspx"United Spirits Limited

WWeikfield Products Company India Private Limited

THE TOP 20 COMPANIES IN FMCG SECTORS. NO.Companies

1.Hindustan Unilever Ltd.

2.ITC (Indian Tobacco Company)

3.Nestl India

4. GCMMF (AMUL)

5.Dabur India

6.Asian Paints (India)

7.Cadbury India

8.Britannia Industries

9.Procter & Gamble Hygiene and Health Care

10.Marico Industries

11.Colgate-Palmolive (India)ltd.

12.Gillette India ltd.

13.Godfrey Phillips

14.Henkel spic

15.Johnson & Johnson

16.Modi Revlon

17.Nestle

18.Nirma ltd

19.Amul India

20.Godrej consumer products ltd.

The companies mentioned in Exhibit I, are the leaders in their respective sectors. The personal care category has the largest number of brands, i.e., 21, inclusive of Lux, Lifebuoy, Fair and Lovely, Vicks, and Ponds. There are 11 HLL brands in the 21, aggregating Rs. 3,799 crore or 54% of the personal care category. Cigarettes account for 17% of the top 100 FMCG sales, and just below the personal care category. ITC alone accounts for 60% volume market share and 70% by value of all filter cigarettes in India.

The foods category in FMCG is gaining popularity with a swing of launches by HLL, ITC, Godrej, and others. This category has 18 major brands, aggregating Rs. 4,637 crore. Nestle and Amul slug it out in the powders segment. The food category has also seen innovations like softies in ice creams, chapattis by HLL, ready to eat rice by HLL and pizzas by both GCMMF and Godrej Pillsbury. This category seems to have faster development than the stagnating personal care category. Amul, India's largest foods company, has a good presence in the food category with its ice-creams, curd, milk, butter, cheese, and so on. Britannia also ranks in the top 100 FMCG brands, dominates the biscuits category and has launched a series of products at various prices.

In the household care category (like mosquito repellents), Godrej and Reckitt are two players. Goodknight from Godrej is worth above Rs 217 crore, followed by Reckitt's Mortein at Rs 149 crore. In the shampoo category, HLL's Clinic and Sunsilk make it to the top 100, although P&G's Head and Shoulders and Pantene are also trying hard to be positioned on top. Clinic is nearly double the size of Sunsilk.

Dabur is among the top five FMCG companies in India and is a herbal specialist. With a turnover of Rs. 19 billion (approx. US$ 420 million) in 2005-2006, Dabur has brands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola and Real. Asian Paints is enjoying a formidable presence in the Indian sub-continent, Southeast Asia, Far East, Middle East, South Pacific, Caribbean, Africa and Europe. Asian Paints is India's largest paint company, with a turnover of Rs.22.6 billion (around USD 513 million). Forbes Global magazine, USA, ranked Asian Paints among the 200 Best Small Companies in the World

Cadbury India is the market leader in the chocolate confectionery market with a 70% market share and is ranked number two in the total food drinks market. Its popular brands include Cadbury's Dairy Milk, 5 Star, Eclairs, and Gems. The Rs.15.6 billion (USD 380 Million) Marico is a leading Indian group in consumer products and services in the Global Beauty and Wellness space.

OutlookThere is a huge growth potential for all the FMCG companies as the per capita consumption of almost all products in the country is amongst the lowest in the world. Again the demand or prospect could be increased further if these companies can change the consumer's mindset and offer new generation products. Earlier, Indian consumers were using non-branded apparel, but today, clothes of different brands are available and the same consumers are willing to pay more for branded quality clothes. It's the quality, promotion and innovation of products, which can drive many sectors.Most of the consumer durable goods will see a reduction in price as the government of India decided to reduce tax levied on them. 4 percentage point reduction in the Cenvat to 10 per cent from 14 per cent is the key driver.

SCOPE

The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the economy. A well-established distribution network, intense competition between the organized and unorganized segments characterize the sector. FMCG Sector is expected to grow by over 60% by 2010. That will translate into an annual growth of 10% over a 5-year period. It has been estimated that FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs 92,100 crores in 2010. Hair care, household care, male grooming, female hygiene, and the chocolates and confectionery categories are estimated to be the fastest growing segments, says an HSBC report. Though the sector witnessed a slower growth in 2002-2004, it has been able to make a fine recovery since then.

For example, Hindustan Levers Limited (HLL) has shown a healthy growth in the last quarter. An estimated double-digit growth over the next few years shows that the good times are likely to continue.

Growth ProspectsWith the presence of 12.2% of the world population in the villages of India, the Indian rural FMCG market is something no one can overlook. Increased focus on farm sector will boost rural incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure facilities will improve their supply chain. FMCG sector is also likely to benefit from growing demand in the market. Because of the low per capita consumption for almost all the products in the country, FMCG companies have immense possibilities for growth. And if the companies are able to change the mindset of the consumers, i.e. if they are able to take the consumers to branded products and offer new generation products, they would be able to generate higher growth in the near future. It is expected that the rural income will rise in 2007, boosting purchasing power in the countryside. However, the demand in urban areas would be the key growth driver over the long term. 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, urban India accounts for 66% of total FMCG consumption, with rural India accounting for the remaining 34%. However, rural India accounts for more than 40% consumption in major FMCG categories such as personal care, fabric care, and hot beverages. In urban areas, home and personal care category, including skin care, household care and feminine hygiene, will keep growing at relatively attractive rates. Within the foods segment, it is estimated that processed foods, bakery, and dairy are long-term growth categories in both rural and urban areas.Availability of raw materialsBecause of the diverse agro-climatic conditions in India, there is a large raw material base suitable for food processing industries. India is the largest producer of livestock, milk, sugarcane, coconut, spices and cashew and is the second largest producer of rice, wheat and fruits &vegetables. India also produces caustic soda and soda ash, which are required for the production of soaps and detergents. The availability of these raw materials gives India the location advantage.FMCG during RecessionAt a time when the economy and industry sectors such as automobiles, aviation and financial services are reeling from the global slowdown, the consumer goods sector in India has managed to buck the trend with most companies posting double-digit growth in net profits in the first half of fiscal 2009 backed by healthy sales

According to the recent reports, India's fast moving consumer goods industry has so far been resilient to the slowdown in the economy and a dip in consumer sentiment. If we go by the numbers for the past few months, the growth only seems to have got better when compared to the earlier months.

As very categorically said by the Amway India Enterprises managing director and chief executive, Mr. William Pinckney." I am not saying that our company (sector) is recession-proof but it is recession-resilient.

This statement on the whole stands strong for most the leading players in the FMCG sector.

ASIAN PAINTSAsian Paints was formed in 1942 in India. Asian Paints is dealing in marine and industrial coatings, automobile OEMs and refinishes, wood finishes, finish coats and an ancillary product in decorative paints. It manufactures and markets paints. The plants of the Group are located in:

Maharashtra

Gujarat

Andhra Pradesh

Uttar Pradesh

Tamil Nadu

Asian Paints is the largest paint company in India and the third-largest company in Asia. It has a turnover of US$ 680 million. The company is spread across 21 countries and has 29 paint manufacturing facilities.

Asian Paints serves through its subsidiaries by the name of:

Berger International Limited

Apco Coatings

SCIB Paints

Taubmans

Some Facts about Asian Paints:

- Asian Paints was ranked among 200 Best small companies in the world for 2002 and 2003 and was presented as the 'Best under a Billion Award' by Forbes Global Magazine;- In Feb 2001, Asian Paints was also awarded as the Ninth Best Player in India by the leading magazine called India Today;- Asian Paints was ranked as the Fourth most admired company across industries in India in a survey conducted by 'Economic Times' in January 2000;

NESTLENestl's relationship with India started in 1912. It started its trading with India as The Nestl Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market. Nestl India is amongst India's 'Most Respected Companies' and amongst the 'Top Wealth Creators of India'.

Nestl India is a subsidiary of Nestl S.A. of Switzerland. Nestl India is a company that provides Indian Consumers products with global standards and is committed to constant growth and shareholder satisfaction. Nestl India has also provided opportunities of growth and employment to about 1 million people including farmers, suppliers of packaging materials, services and other goods.

Nestl made its first investment in Moga in 1961. In 1967 Nestl established its next factory at Choladi (Tamil Nadu). At present, it has a number of factories in different parts of India such as:

1.Punjab2.Uttaranchal3.Delhi4.Gurgaon5.Kolkata6.Mumbai7.Goa8.Karnataka9.Chennai10.TamilNadu

Nestl's Brands in India

Milk Products & Nutrition

.Nestleverydaydairywhitener .Nestleverydayslim.NestleverydaYghee.Nestl milkmaid .Nestlfresh'n'naturaldahi.Nestlfresh'n'naturaLslimdahi .NesTlEjeeraraita .Nestle curds.Nestle milk.Nestlslimmilk.NestlEmilkmaidfruityoghurt

Beverages

.Nescafe classic .Nescafe sunrise.Nestlmilo.Nescafe3in1.Nescafekoolerz

Prepared Dishes and Cooking aids

.Maggi2-MINUTENoodles .MaggiVegetableAttaNoodles.MaggiDalAttaNoodles.MaggiRiceNoodlesMania.MaggiSauces.MaggIPizzAMazza.MaggiHealthySoups

Chocolates and Confectionary

.NestlKitKat.NestlKitKatLite.NestlMilkyBar.Nestle Munch.NestlMilkChocolate.NestlEFunBar.Polo.PoloPowermint.NestlMunchPopChoc. Nestl clairs

DABUR

Dabur India Ltd. is the fourth largest FMCG Company in India. Dabur deals in Health care and Personal care products. Today, Dabur has a turnover of Rs.1899.57 crores. The market penetration of Dabur is of about 1.5 million retail outlets all over India with 47 C& F agents and more than 5000 distributors. Dabur India is divided into 2 major strategic business units:

Consumer Care Division

Consumer Health Division

Dabur has 3 subsidiary group companies:1. Dabur Foods 2. Dabur Nepal 3. Dabur International- Further divided into Asian Consumer Care in Bangladesh, African Consumer Care in Nigeria and Dabur Egypt.

Dabur's Brands Vatika

Anmol

Hajmola

Dabur Amla

Dabur Chyawanprash

Dabur Lal Dant Manjan

CADBURY

Cadbury entered India in 1948 by importing chocolates. And now, it has manufacturing facilities in Mumbai, Pune, Gwalior, Bangalore, and Himachal Pradesh and 4 sales offices at Mumbai, Kolkata, New Delhi, and Chennai in India. The corporate office is in Mumbai. Cadbury is into the business of Chocolate Confectionary, Milk Food Drinks, and Candies. Some of Cadbury's key brands are: Chocolates

Cadbury Dairy Milk

5 Star

Perk

clairs

Celebrations

Milk food drinks Bournvita Candy

Halls.

MARICO

Marico is a leading Indian group operating in

Consumer Products

Aesthetic Services

Global Ayurvedics Business Marico has generated a turnover of Rs. 11.5 billion (US$ 250 Million) during 2005-06. It is a leading Indian group in Consumer Products and Services. Marico's well-known brands are:

Parachute

Saffola

Sweekar

Hair & Care

Nihar

Shanti

Mediker

Revive

Kaya

Sundari

Aromatic Fiancee

HairCode.

GCMMF(AMUL)

Gujarat Cooperative Milk Marketing FederationGujarat Cooperative Milk Marketing Federation (GCMMF) is the largest food product marketing organization of India. It aims to provide good returns to the farmers and also to fulfill the requirements of consumers by giving them quality products.

Amul was formed in 1946 by an apex co-operative organization, Gujarat Cooperative Milk Marketing Federation. AMUL means "priceless" in Sanskrit. Amul products are used by millions of people. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk, and Amulya has made Amul one of the leading

food brands in India. Amul products are sold at reasonable prices. Amul has a turnover of Rs. 37.74 billion in 2005-06

Amul's Products

Infant Milk Range

Amul Infant Milk Formula 1

Amul Infant Milk Formula 2

Amulspray Infant Milk Food

Milk Powders

Amulya Dairy Whitener

Sagar Skimmed Milk Powder

Sagar Tea and Coffee Whitener

Amul Full Cream Milk Powder

Bread Spreads

Amul Butter

Amul Lite Low Fat Bread Spread

Amul Cooking Butter

Pure Ghee

Sagar Pure Ghee

Amul Pure Ghee

Amul Cow Ghee

Cheese Range

Amul Emmental Cheese

Amul Gouda Cheese

Amul Malai Paneer (cottage cheese)

Utterly Delicious Pizza

Amul Pasteurized Processed Cheddar Cheese

Amul Pizza (Mozarella) Cheese

Amul Shredded Pizza Cheese

Amul Processed Cheese Spread

Mithaee Range (Ethnic Sweets)

Amul Mithaee Kulfi Mix

Avsar Ladoos

Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)

Amul Amrakhand

Amul Mithaee Gulabjamuns

UHT Milk Range

Amul Shakti

Amul Taaza

Amul Gold

Amul Lite Slim-n-Trim Milk

Amul Fresh Cream

Amul Snowcap Softy Mix

Fresh Milk

Amul Slim & Trim Double Toned Milk

Amul Saathi Skimmed Milk

Amul Taaza Toned Milk

Amul Gold Full Cream Milk

Amul Cow Milk

Amul Shakti Standardized Milk

Curd Products

Yogi Sweetened Flavored Dahi

Amul Masti Dahi

Amul Masti Spiced Butter Milk

Amul Lassee

Amul Ice creams

Royal Treat Range

Nut-o-Mania Range Nature's Treat

Sundae Range

Assorted Treat

Utterly Delicious

Chocolate & Confectionery

Amul Milk Chocolate

Amul Fruit & Nut Chocolate

Brown Beverage

Nutramul Malted Milk Food

Milk Drink

Amul Kool Flavored Milk

Amul Kool Cafe

Health Beverage

Amul Shakti White Milk Food

HUL

Hindustan Unilever Limited also called Hindustan Lever Limited (HLL) was established in 1933 as Lever Brothers India Limited. Hindustan Lever Limited (HLL) is India's largest Fast Moving Consumer Goods Company, with a customer base of 2 out of every 3 Indian in the category of Home & Personal Care Products and Foods & Beverages. The company has combined volumes of about 4 million tonnes and sales of Rs.10, 000 crores. HLL is also one of the country's largest exporters; the Government of India has recognized HLL as a Golden Super Star Trading House

PART 2: PRIMARY STUDY

Literature Review

A Publication of TRANS Asian Research Journals Vol.1 Issue 4, September 2012Advertising industry In Saudi Arabia, with its growing productive capacity and output, there is a need for finding consumers for this growing output, and advertising plays an important role in the process of moving the goods from the producers to the consumers. With mass marketing to distribute the output of production, the GDP (gross national product) may increase to a considerable extent. Advertising helps to increase mass marketing while aiding the consumer to choices and preferences from amongst the variety of products offered for his selection and option. It was only in the latter half of the 19th century, that mass advertising, as we know it today, came into being. Mass production became a reality, and channels of distribution had to be developed to cope with the physical movement of goods, creating a need for mass communication to inform consumers of the choices available to them. We are all influenced with advertisements in our day to day life. Its forms and contents both are well liked amongst consumers.. In other words advertising is simply an economic movement with only one objective behind to increase the consumer demand of the product as well as to enhance the sales volumes.

Many advertisers and agencies believe that advertising creates magic in the market place (Russell & Lane, 1996).

There is not just one kind of advertising; in fact, advertising is a large and varied industry and all types of advertising demand the creative, original messages that are strategically sound and well carried out (Wells et al., 1995).

Media is the vehicle that is used for the delivery of the message. Some important tools of advertisement is newspapers, magazines, radio, television, direct mail and mail order, outdoor display and transportation (Wells, Burnett &Moriarty, 2000).

Developing effective advertisements represent key ingredient marketing communications efforts. The advertising team should define the objective of advertisement; the target audience, the message theme used, the type of support needed, and any constraint apply. Then a creative works within the context of key advertising theories in selecting the correct media and designing a leverage point and message appeal that work effectively. The hierarchy of effects models suggest consumer move through a series of stages as they are persuaded to make a purchase

1. Awareness.

2. Knowledge

3. Liking

4. Preference

5. Conviction

6. Actual purchase.

The hierarchy of effects model can be combined with the three main elements present in attitudes; (1) cognitive, (2) affective, and (3) conative components. Advertisements are design to influence affective feelings cognitive knowledge, or conative intention to act or behave based on attitude. The process of designing ads for international markets is quite similar to that for domestic ads. The major difference is careful consideration of local attitudes with due care given to the language, custom and fashions. (Kenneth E.Clow and Donald Baack, 2012)

Above reference indicate the impact of advertisement on consumers buying behavior with reference to fast moving consumer goods (FMCGs). Milk as a FMCG brand has opted to know the impact and effects of advertisement were investigated. Everywhere advertisement is involved in our daily life through on television, radio, newspaper, magazine and billboards are common through which advertisement reach us. Advertiser and marketers are more concerned to know what are the consumers motives preferences options and their purchasing pattern and style in order to use different types of strategies to influence their consumer behavior.

Advertising Effectiveness by Jerry W. Thomas

he believe in the power of advertising, based on thousands of studies in our archives. Advertising has the power to persuade, the power to influence the mind and shape destiny. It has the power to change markets and improve profit margins. Advertising has short-term power (conveying new information, building awareness, enhancing credibility, etc.) and long-term power (conveying brand image, attaching emotional values to the brand, building positive reputation, etc.). The great power of advertising is seldom achieved in practice, but we cant give up. The potential and the promise are too great. The companies that master the creative guidance and the testing systems to consistently develop and deploy great advertising will own the future and the fortunes that go with it.

Lepkowska-White, Elzbieta, Brashear, Thomas G, Weinberger, Mare G (2003) in his study showed that successful advertising is a key requirement for overall success in the international market.

This study is attempted to investigate whether appeals designed for different product types can be standardized in distinct cultural settings. We use thinking/feeling and involvement characteristics of products and distinct national cultural characteristics of consumers in Poland and the United States to predict and compare reactions to ads with different appeals.

Finings of the study indicate that marketers can standardize ad appeals tested in this study from the market. The study also suggests that in the market, product characteristics are better predictors of consumer responses to ads than cultural characteristics or appeal types. This issue, along with other factors, such as country of origin, brand names, and so forth, may affect reactions to ads,investigated in the future to prevent advertising mistakes that have been common in the past.Zhou, Nan, Zhou, Dongsheng, Ouyang, Ming (2003)Conducted their study is to investigate the impact of short term advertising on long- term sales of consumer fast moving and slow moving goods. Our results show that, as a whole, advertising had long effects on sales of consumer durables, but did not have long term effects on sales of consumer fast moving goods. Tobias Maria Gunter (2003) in his study on "Measurement of advertising effectiveness and goodwill-transfer in case of vertical product differentiation" showed that consumer goods manufacturer spend a high percentage of their marketing budget for advertising, e.g. TV- advertising. In order to efficiently allocate the budget across time it is necessary to quantify the dynamic effects of advertising. The measurement of advertising effectiveness needs to address two important issues: pulsing policies and wear out effects. Pulsing policies describe advertising strategies when companies choose between high and low advertising budget in successive periods. Wear out effects describe the declining effectiveness of an advertisement which may lead to time- varying parameters. Time series techniques will be used to quantify advertising response models, This method will be modified and applied for the case of vertical product differentiation.

Gupta & Devi (2008) studied it will be around the impact of TV advertisements on buying pattern of adolescent girls. He found that the advertisement played a vital role in introducing anew product in the family list and making better choice during shopping. The girl's utilized pocket money received every moth for shopping. The adolescent girl is influenced by T.V. advertisement when he purchases clothing they were guided by fashion, fri

boutiques. The respondents preferred to buy branded and standardized product which are more advertised on television.

Elder & Krishna (2009) investigated the effects of advertising comply on sensory thoughts and perceived taste. We propose that advertisement (ad) content for food products can affect taste perception by affecting sensory cognitions. Our results are exhibited across three experiments and have many implications for cognition and sensory perception research with in consumer behavio

BACKGROUND OF THE STUDYFast-moving consumer goods(FMCG) orconsumer packaged goods(CPG) are products that are sold quickly and at relativelylow cost. Examples include non-durable goods such assoft drinks,toiletries,over-the-counter drugs,toys,processed foodsand many otherconsumables.In contrast, durable goods or major appliances such as kitchen appliances are generally replaced over a period of several years. FMCGs have a short shelf life, either as a result of high consumer demand or because the product deteriorates rapidly.[3]Though the profit margin made on FMCG products is relatively small (more so for retailers than the producers/suppliers), they are generally sold in large quantities; thus, the cumulative profit on such products can be substantial. FMCG is probably the most classic case of low margin and high volume business.

Fast-moving consumer electronics are a type of FMCG and are typically low priced generic or easily substitutableconsumer electronics, includingmobile phones,MP3 players,game players, anddigital cameraswhich are of disposable nature.PROBLEM STATEMENT OF THE STUDY

Here, through this study on effectiveness of an advertising in FMCG industry is we are looking at perception of people towards advertising.

In this study we have to identify which are the major factors that affect to advertising in FMCG industry.Trying to identify how customer behave and how advertise impact on customer mind.OBJECTIVE OF THE STUDY

To measure an effectiveness of an advertising in FMCG industry.

To know the behavior of people towards advertising.

To check out the perception of people towards advertisings.

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