survey report - copy.docx
TRANSCRIPT
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Institute of engineering and
technology
Submitted To: Submitted By:
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Survey report on
ROLE OF PLACE IN THE MARKETING MIXFOR THE F.M.C.G. PRODUCTS
Acknowledgement
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We take immense pleasure in thanking our Head of the MBA Department Mr D.N. Kakkar
sir who encouraged and challenged us through our academic program and for having permitted
us to carry out this survey work. He never accepted less than our best efforts.
Our special thanks to Sailesh sir and all our faculty members who helped us in preparing and
arranging the survey questions and for their invaluable suggestions in preparation and
completion of the report.
And especially to God, who made all things possible.
Finally, yet importantly, we would like to express our heartfelt thanks to our beloved parents for
their blessings.
INDEX
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1 INTRODUCTION
2 objective
3 research methodology
4 data analysis
5 Findings
6 conclusion
7 recommendations & suggestions
8 LIMITATIONS
9 BIBLIOGRAPHY
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Introduction
To understand the marketing mix we first have to understand what market and marketing really
is. The popular meaning of the term Market refers to a place where goods are bought and sold
against a price consideration between the buyers and the sellers. But it may be technically
defined as not just a place but a commodity or commodities and buyers and sellers who are in
direct competition with one another. It includes both the products and services provided.
In marketing, the term Market refers to a group of consumers or organizations that are
interested in the product or service, has the resources to purchase them, and is permitted by law
and other regulations to acquire the product.
The market definition begins with the total population and progressively narrows down to
Target Market and Penetrated Market.
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The Concept Of Marketing:
Marketing is generally understood as the sale and purchase of goods and services but it is just a
narrow thinking to understand it. The term Marketing is very wide; it simply does not just
refer to only sale and purchase of the goods and services. It means the entire process of satisfying
the needs of the consumers. It starts with the discovery of needs and wants of the consumers and
it continues till these needs and wants are satisfied.
Marketing may be defined as the process of matching the resources of the business with
identified consumer needs. In other words, marketing is concerned with the focusing of the
organizations resources to ensure that the consumer is satisfied and that while fulfilling the
consumers needs and wants the organization earns profit.
Some of the key questions a firm or an organization faces are:
What do customers want? Can we develop it while they still want it? How can we keep our customers satisfied?
In response to these discerning customers the firms adopt the Marketing Concept whichinvolves:
Focusing on customer needs before developing the product Aligning all functions of the company to focus on those needs Realizing a profit by successfully satisfying the customers needs over the long term
The marketing concept relies upon marketing research to define market segments, their size andtheir needs. To satisfy those needs, the marketing teams make decision about the controllable
parameters of the Marketing Mix.
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The Marketing Mix:
Marketing Mix is a combination of several elements of marketing. These elements include what
is commonly referred to as the The four Ps which are:
Product Price Place /Marketing Channel Promotion
When these elements are combined it is possible to see the target customers. This is considered
the result of carefully mixing the other elements. By combining different amount of the basic
elements, a different mixture can be created. This is used by the businesses to formulate a
marketing strategy for the products or services that they offer.
The four Ps are important during all stages of production from early development to the final
production, by adhering to a good marketing mix, the product will have a more focused target
customer. This can help the product or service to perform better in sales than if no marketing mix
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strategy is used. A marketing mix is also used to cater the product to the intended customer. If
the product is intended to be high profile, then the mix would be adjusted to focus on the
promotion while compromising on the other elements in the mix. If the main focus is the selling
price then elements would be adjusted to accommodate the lower price point of the item.
Place Mix or Marketing Channels:
Producer of a product rarely sell their goods or services directly to the consumers or the
customers. Marketing Channels or in terms of marketing mix Place, are the means by which
interdependent organisations move products or services from the producer to the person that
purchases or consumes the product. This is the basic role of distribution.
According Philip Kotler A marketing channel is a set of independent organizations that help a
product or service available for use or consumption by the consumer or business user.
Place has a number of names such as channel, distribution or intermediary. It is the mechanism
through which goods and/or services are moved from the manufacturer or the service provider to
the user or the consumer.
Some of the examples of the distribution decision or the place decision include:
Distribution channels Market coverage (inclusive, selective, or exclusive distribution) Specific channel members Inventory management Warehousing Distribution centers Order processing Transportation Reverse logistics, etc.
The survey focuses on the role of the place in the marketing mix of for the F.M.C.G products.
What is meant by the F.M.C.G. products? Is the first question that pops up in the mind.
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F.M.C.G:
F.M.C.G. stands for Fast Moving Consumer Goods. The fmcg industry includes food and
non-food everyday consumer products. They are usually purchased as an outcome of small-scale
consumer decision so they are heavily supported (advertising, promotion) by the manufacturers.
Typical purchasing of these goods occurs at grocery stores, supermarkets, hypermarkets etc. the
manufacturers are always exploring new outlets and sales locations while the traditional retailers
have introduced private label brands to capture additional profit. Every one of us uses fast
moving consumer products every day.
Fig: Some F.M.C.G. products
This business is based on building a powerful brands and achieving a high level of distribution.
Global power brands are the choice of multinational companies. Local brands can complement
these. Achieving superior distribution through a powerful supply chain and making sure the
products are available wherever someone might want or need it. The fmcg supply chain is
interrelated collection of processes and associated resources. It includes suppliers,
manufacturers, logistics service providers, warehouses, distributors, wholesalers and all other
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entities that lead up to delivery to the final customer. Followed in the market through sales force
activity it can help gain a high level of distribution.
Market research, consumer research, segmentation and product positioning is the compulsory
homework of any company in this industry. Advertising and promotions, POS activities drive
brand awareness, trial, purchase are core activities. While TV advertising is most common new
solutions are also used including internet advertisements. High budgets, creativity and detailed
planning are needed.
Fig: Some F.M.C.G. companies and brands
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Objective
The objective of our survey and research is based on one of the mixes of the
marketing mix:
To study the role of the Place in the marketing mix of the F.M.C.G.products.
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Literature REVIEW
The marketing mix paradigm, in its famous version of the 4 Ps, went all the way through the
evolution of marketing theory being object of discussion both in academic literature and
managerial practice. Though its a fact that the 4 Ps marketing mix is a milestone of marketing
theory, it is also true that the evolution of business contexts has created the need to review the
controllable factors which form the marketing mix.
In McCarthys version, the marketing mix is composed of: product, price, placeand promotion. Each of these Ps comprise a number of the twelve managerial
policies described by Borden (1964), thus including other sub-mixes within each P.
As noted by Kalyanam & McIntyre (2002), the marketing mix is a collection
of thousands of micro-elements clustered together in order to simplify managerial
activity. The validity or the exclusion of the traditional mix in the digital context is a
matter of if and how it is possible and convenient to extend the number of elements it includes
or to dismiss it and create a new one.
Place. Can be defined today as: everything that is done and necessary to smooth the process of
exchange (Yudelson 1999). The application of this definition to the digital context urges to add
the element of purchasing process as a key feature of place within the mix. The process must be
smooth and easy, while building relations with customers at the same time. The physical place
becomes virtual and includes intangible aspects of transaction. Bhatt & Emdad (2001) underline
that the main contribution of Internet to business is not the mere possibility of selling products
online, rather its capability of building relations with customers. The interactive capabilities of
Internet allow the implementation of more efficient and effective systems of digital Customer
Relationship Management (e-CRM). Internet enables to obtain information which can be used to
manage customers, thanks to the data gathered through the registration of users to the companys
Web page and the online purchase data for each customer. This helps to maintain
the service level and
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improve the management of the customer portfolio (Fjermestad & Romano, 2003; OLearly et
al., 2004). In the formulation of his twelve elements Borden (1964) pointed out that
it is necessary to create: 1) a list of the important elements or ingredients that make
up marketing programs; 2) a list of the forces that bear on the marketing operation of a firm and
to which the marketing manager must adjust in his search for a mix or program that can be
successful.
McCarthys marketing mix has been widely adopted through time by managers and academics,
becoming a key element of marketing theory and practice. This wide diffusion may be
justified on the basis of its simplicity of use and understanding which makes it a
useful tool both for marketing decisions and teaching. (Grnroos, 1994; Yudelson,
1999; Jobber, 2001). The concept of marketing mix is considered in the Managerial School of
Marketing (MSM)
The 4 Ps marketing mix was created in the early days of the marketing concept
when physical products, physical distribution and mass communication were dominant.
Today, with the new business environment created by the different and empowered
capabilities of digital contexts, the marketing mix paradigm increasingly becomes object of
criticisms. Although the mix has the capacity to include a wide set of variables in order to adapt
to a large range of mutations in the business environment, many authors believe it is obsolete and
inadequate for the 21st Century.
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Researchmethodology
SAMPLE DESIGN
SAMPLE UNIT: - All people are included both the genders i.e.males and females
irrespective of their education level
SAMPLE SIZE: - 100
SAMPLE REGION: - LUCKNOW
SAMPLING PROCEDURE: - Random Sampling
DATA COLLECTION METHOD
PRIMARY DATA :
Primary data was collected through a self administrated questionnaire. This q u e s t i o n n a i r e
a i m s t o g a t h e r i n f o r m a t i o n r e l a t e d t o v a r i o u s B r a n d e d Electronic Home
Appliances.
SECONDARY DATA:
Secondary data was collected through magazines, research papers, internet etc.
RESEARCH INSTRUMENT QUESTIONARRE DESIGN:
As the questionnaire is self administrated one, the survey is kept simple and user friendly. Words
used in questionnaire are readily understandable to all re s pond en t . Al so t e chn i ca lj a rgons a r e avo ide d to ensu r e th a t t he re i s n o confusion for respondents.
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Data Analysis and Interpretation:
According to the questions that were part of the questionnaire we got the responses and the
detailed results which were found are given in the following detailed pie charts.
The first detail which was asked to be filled was the Marital status of the person whowas filling the form. We got the following results :
About 72% respondent were unmarried and 28% respondent were married.
Then the Gender of the person was to be stated. Following results came :
1) MARITAL
STATUS
0% 1. MARRIED28%
2. UNMARRIED
72%
Marital status
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About 65% respondent were females and 35% respondent were males.
Then the person was asked to state his/her age group. Following results came :
2) GENDER
0% 1.MALE
35%
2.FEMALE
65%
Gender
3) WHICHAGE GROUP
DO YOU
BELONG?
0%1. 15-20 years
9%
2. 20-25 years
45%
3. 25-30 years
28%
4. Above 30
years
18%
Which age group do you belong?
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According to the results that came the majority of the people who were surveyed were between
the age of 20-25 years which topped with 45%. Rest were as follows 15-20 years 9%, 25-30
years 28%, and above 30 years were 18%.
Then they were asked give details of their income i.e., in what income group theycame? following was the income group:
1. Below 10,0002. 10,000 to 20,0003. 20,000 to 30,0004. Above 30,000
The following results came:
1. 25% had income Below 10,0002. 36% had income between 10,000 to 20,0003. 16% had income between 20,000 to 30,0004. 23% had income above 30,000
4) WHAT IS
YOUR
MONTHLY
INCOME?
0%
1. Below
10,000
25%
2. 10,000 To
20,000
36%
3. 20,000 To
30,000
16%
4. Above 30,000
23%
What is your monthly income?
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The next question was to state the area where they belonged? with the options being:1. Rural2. Urban3. Town
Following are the stats received from the response of the person filling the surveys:
1. 10% respondents belong to Rural area
2. 69% respondents belong to Urban area
3. 21% respondents belong Town area
Then we asked them how much distance were they willing to cover or travel forpurchasing the products? following were the results that came:
5) WHICH
AREA DO
YOU
BELONG ?
0%
1. Rural
10%
2. Urban
69%
3. Town
21%
Which area do you belong?
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The results showed that about 38% of the people would easily cover around 1-3 km for
purchasing the product that they desire whereas 23% would travel about 1 km for the same, next
there were around 26% people who will travel 3-5 km for purchasing a product and only about
13% were willing to travel more than 5 km to buy a product.
As the markets have broken the physical worlds barriers and have entered the virtualworld i.e., the World Wide Web so our next two questions were to see whether the
Lucknowites knew about this new market or not.
The first question was that Whether they knew about the online marketing and a majority
of people knew about the online marketing. The stats are displayed in the following chart.
6) HOW MUCH
DISTANCE ARE
YOU WILLING
TO COVER FOR
PURCHASING
PRODUCTS?0%
1. Less than 1 km
23%
2. 1-3 km
38%
3. 3-5 km
26%
4. More than 5 km
13%
How much distance are you willing to cover for
purchasing products?
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The next question that followed was again related to the online marketing, the respondents were
asked if they have purchased or purchase products online following were the options and
the percentage of the people who frequently bought products online, who rarely buy any product
online and those who have never bought any product online.
1. Frequently 6%2. Rarely 55%3. Never39%
The following shows the results:
7) DO YOU
KNOW ABOUT
ONLINE
MARKETING?
0%
1. Yes
79%
2. No
21%
Do you know about online
marketing?
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The respondents were now asked from where do they usually purchase theirproducts? following were the stats based on the answer given by them:
The results clearly indicated that maximum number of respondents prefer the General store and
Shopping malls to purchase their products with those who made most of their purchases from
the Retail stores and the least number of people bought products Online.
8) DO YOU
PURCHASE ANY
PRODUCT
ONLINE?
0%1. Frequently
6%
2. Rarely
55%
3. Never
39%
Do you purchase any product online?
9) FROM
WHERE DO YOU
USUALLY
PURCHASEYOUR
PRODUCT?
0%1. General Store
44%2. Retailers
19%
3. Shopping
Mall
31%
4. Online
6%
From where do you usually purchase
your product?
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The respondents were then asked to choose between a local product or a brandedproduct the respondents chose Branded products overLocal Products.
Then the respondents were asked that Whether they will prefer another company orbrand which is easily available near their residence or they will stick to their old
brand or company?
Following results show that more than half of the respondent were not able to decide whether
they will chose another brand over their old brand or not.
10) WHAT
WOULD YOU
PREFER A
LOCAL
PRODUCT
OR A
BRANDED
PRODUCT?
1. Local
12%
2. Branded
88%
What would you prefer a localproduct or a branded product?
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Then in the end the respondents were asked to Choose among the factors which theyfelt was important to them while purchasing a product
The majority of respondents chose the quality of the product to be the major factor and the least
of the respondents chose place as the factor which effected their purchase decision.
11) IF A
PRODUCT OF
ANOTHER
COMPANY OR
BRAND IS
EASILYAVAILABLE
NEAR YOUR
1. Yes
25%
2. No
24%
3. Maybe
51%
If a product of another company or
brand is easily available near your
residence will you change your oldcompany or brand?
12) WHICH
FACTOR DO YOU
GIVE MOST
IMPORTANCE
WHILE
PURCHASING A
PRODUCT?
0%
1. Place
6% 2. Price
20%
3. Quality
59%
4. Brand
15%
Which factor do you give more importancewhile purchasing a product?
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conclusion
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Limitations
The report has been prepared after surveying 100 people, rather a very small population in
comparison to the actual population of Lucknow. Hence the result of report cannot be stated as
standard for finding the role of place in marketing mix for fmcg products. This was the main
limitation of report.
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Bibliography
http://www.netmba.com/marketing/concept/ http://www.marketingplan.net/marketing-mix/ http://www.dokwayne.com/2011/marketing-mix/ http://marketingteacher.com/lesson-store/lesson-place.html# http://en.wikipedia.org/ http://www.fmcg.ws/ http://business.rediff.com/report/2010/jan/25/fmcg-companies-struggle-to-tackle-
fakes.htm
http://withfriendship.com/images/h/39530/Fast-moving-consumer-goods-image.jpg