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ON
GUIDED BY
SUBMITTED BY
Prof. B.B.Singla
Sukhdeep Singh
Roll No.6296
MBA-II (Marketing)
DECLARATION
I Sukhdeep Singh hereby declare that the project work titled A STUDY TO
ANALYSE THE EFFECTIVENESS OF ADVERTISEMENT ON BRAND EQUITY OF
FMCG is original work done by me and submitted to the Punjabi University for the
fulfillment of requirements for the award of Master of Business Administration (MBA)
IV semester under the guidance of Prof. B.B.Singla.
Sukhdeep Singh
MBA-II year (Marketing)
Roll no. 6296
ACKNOWLEDGEMENT
I offer my gratitude to those who have spent their precious time, interest and
continued encouragement through the study and for the completion of my project.
I would like to thanks to our project guide Prof.B.B.Singla for their
encouragement and support throughout the course of our project.
Last but not the least, I express my gratitude to all those who directly & indirectly
direct me for successful completion of the project.
Sukhdeep Singh
MBA-II year (Marketing)
Roll No. 6296
CHAPTER
NO.
1.
NAME
2.
ABOUT FMCG
4.
OBJECTIVE OF STUDY
5.
REVIEW OF LITERATURE
6.
RESEARCH METHODOLGY
7.
8.
9.
SUMMARY
10.
BIBLOGRAPHY
11.
QUESTIONNAIRE
INTRODUCTION
TABLE OF CONTENT
INTRODUCTION
In the dictionary definitions of advertising it does not tell us too much about the
modern uses or functions of this business tool. They tell you that Advertising means
to make know, to inform, to attempt, to persuade etc. One definition, found in The
Reader Digest Great Encyclopedia Dictionary, says advertising is the act or practice
of attracting public notice so as to create interest or induce purchase, also any
system or method used for such purposes. Many people would accept this definition
as simple and compact, but it is too broad. Advertising is a non-personal, multiple
presentations to the market of goods, services or commercial ideas by an identified
sponsor who pays for the delivery.
In essence, advertising is a substitute for human salesman talking personally to an
individual prospect or customer across a store, counter, or desk or an open door.
And as a substitute for the human salesman, advertising has the same function,
abilities and attributes as the human salesman, although usually in less effective
form. It is less effective than personal selling, principally because it must be
designed to appeal to a mass audience, in contrast with the personal salesman
ability to tailor his message to each individual prospect and because again unlike the
personal salesman, it has no opportunity to talk objections. As a substitute and an
extension of personal selling, advertising also has many of the same characteristics
as the personal salesman.
It can be hardworking and efficient, or lazy and wasteful. It can be upright and
honest or slick and shady. It can tell its story calmly and quietly without hyperbole, or
it can shout in your ear. It can address you as though you were a rational, thoughtful
human being. It can be serious and thoughtful, or flip and humorous, it can reason
with you, or entertain you, flatter you. It can be all these things and do all these
things, but no more. Because in the end, its success or failure and its value to the
advertiser who pays all its costs must rest on its ability to persuade a sufficient
number of prospects to do what it says or buys what it sells without the use of any
kind of force.
The American Marketing Association (AMA) defines advertising as any paid form of
non-professional presentation and promotion of ideas, goods and service by a
identified sponsor. Advertising is a powerful means of communication, which not
only leads to corporate, and product visibility but also creates, stimulates and
sustains the demand for the product.
The past few decades have led to the emergence of vibrant consumer markets
throbbing with the excitement of consumptions. The corporate organizations of today
can hardly afford to remain faceless entities and their products merely utilitarian
objects. It becomes increasingly imperative for the business houses to assume
humanized character and the product to have an emotive association through
advertising effort. Advertising does the job of reaching out to people with a set of
associations and appeals.
Advertising as such has a vast power in sharing the popular desires, and hence it is
one of the institutions, which has a formidable influence on our society. It is also
defined as a powerful but difficult form of communication, which helps immensely in
raising production-sales, bringing more clientele to service sector, and even
persuading people to change their perception on social issues. It stimulates greater
consumption and hence contributes to social progress through industrial growth.
Advertising is a component of marketing mix and it is the marketing mix which
determines the kind and nature of advertising and its strategy. Advertising is an art
because it involves process of communication of the message across the audience.
Advertising is a science because it involves rules, generalization and principles
relating to collection of useful information and its application in the advertisement
copy.
The present day Indian Industry is witnessing all the constituents of a market
economy. There are business concerns verying for a maximum share out of the
crakes not too big to accommodate all of them. There has been a flood of consumer
goods for the buyer to choose from. There are newer products as well as multiple
brands. When it comes to consumer goods in a market situation, there are wars on
price, quality and positioning fronts. In the light of all these things, advertising
assumes a great significance. It is a key weapon in marketing warfare. Building
added values, for a brand is the prime role of advertising. The success of effective
advertising campaigns is twofold: their ability to attract consumer trial with a
compelling dramatization of the product's story, and, their ability to communicate
continuous satisfaction or even cumulative benefit as a means of reinforcing loyalty.
According to Alyque Padamsee (1995), in the emerging high media clutter
environment, both print and electronic media advertising needs more than just to be
persuasive. It needs to be noticeable. A great advertisement is no longer one that
tells you a lot about a product rationally and emotionally. A great advertisement has
to first and foremost attract your attention. The value premium that a company
realizes from a product with a recognizable name as compared to its generic
equivalent. Companies can create brand equity for their products by making them
memorable, easily recognizable and superior in quality and reliability. Mass
marketing campaigns can also help to create brand equity. If consumers are willing
to pay more for a generic product than for a branded one, however, the brand is said
to have negative brand equity. This might happen if a company had a major product
recall or caused a widely publicized environmental disaster.
Brand Equity is the value and strength of the Brand that decides its worth. It can also
be defined as the differential impact of brand knowledge on consumers response to
the Brand Marketing. Brand Equity exists as a function of consumer choice in the
market place. The concept of Brand Equity comes into existence when consumer
makes a choice of a product or a service. It occurs when the consumer is familiar
with the brand and holds some favourable positive strong and distinctive brand
associations in the memory.
Brand Awareness
Brand Associations
Brand Loyalty
Perceived Quality: refers to the customers perception about the total quality of the
brand. While evaluating quality the customer takes into account the brands
performance on factors that are significant to him and makes a relative analysis
about the brands quality by evaluating the competitors brands also. Thus quality is a
perceptual factor and the consumer analysis about quality varies. Higher perceived
quality might be used for brand positioning. Perceived quality affect the pricing
decisions of the organizations Superior quality products can be charged a price
premium. Perceived quality gives the customers a reason to buy the product. It also
captures the channel members interest.
ABOUT FMCG
Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are
products that are sold quickly and at relatively low cost. Examples include nondurable goods such as FMCG, toiletries, and grocery items. Though the absolute
profit made on FMCG products is relatively small, they are generally sold in large
quantities, and so the cumulative profit on such products can be substantial.
Fast-moving consumer electronics are a type of FMCG and are typically low priced
generic or easily substitutable consumer electronics, including lower end mobile
phones, MP3 players, game players, and digital cameras, which have a short usage
life, typically a year or less, and as such are disposable. Cheap FMCG electronics
are often retained even after immediate failure, as the purchaser rationalizes the
decision to not return the goods on the basis that the goods were cheap to begin
with, and that the cost of return relative to the low cost of purchase is high. Thus lowquality electronic FMCG goods can be highly profitable for the vendors.
The term FMCGs refers to those retail goods that are generally replaced or fully
used up over a short period of days, weeks, or months, and within one year. This
contrasts with durable goods or major appliances such as kitchen appliances, which
are generally replaced over a period of several years.
FMCG have a short shelf life, either as a result of high consumer demand or
because the product deteriorates rapidly. Some FMCGssuch as meat, fruits and
vegetables, dairy products, and baked goodsare highly perishable. Other goods
such as alcohol, toiletries, pre-packaged foods, FMCG, and cleaning products have
high turnover rates. An excellent example is a newspaperevery day's newspaper
carries different content, making one useless just one day later, necessitating a new
purchase every day.
The following are the main characteristics of FMCGs:
From the consumers' perspective:
Frequent purchase
Low involvement (little or no effort to choose the item products with strong brand
loyalty are exceptions to this rule)
Low price
From the marketers' angle:
High volumes
Low contribution margins
Extensive distribution networks
High stock turnover
FMCG covers the sector overview in India, sector size, competitive landscape,
environmental scanning and recent developments in the industry. It also covers the
key economic indicators for India, trends in home care segment, trends in personal
care segment and trends in food and beverage segment, plus the profile,
comparative matrix and SWOT analysis of the industry leading players: Hindustan
Unilever Limited (HUL), Godrej Consumer Products Limited (GCPL), Indian Tobacco
Company (ITC) and Colgate-Palmolive India Limited (CPIL).
The Indian economy experienced an economic slowdown with high inflation in fiscal
year 2012. However, Indias FMCG Industry was resilient in face of slowdown with
growth in both sales and profitability. The ever increasing middle class backed by
rising per capital income is driving the growth of the FMCG sector in the country.
Moreover the wide distribution network built by major players ensures the high
penetration of the FMCG products in rural India as well, which is home to more than
65% of Indian population. Hence, FMCG is one of the sectors in the country which
has successfully mitigated the rural-urban divide.
In the second half of 2012, consumer confidence remained strong in the Indian
market. India was ranked first along with Indonesia in a consumer confidence index
published by Nielsen. However, inflation was hovering around the 10% mark which
prevented the Reserve Bank of India from initiating any cuts in benchmark interest
rate. The performance of leading players in FMCG sector was above par in the
second half with almost all of them experiencing double digit growths. Their stock
prices also saw a significant appreciation during the course of the year.
The outlook for Indian FMCG is positive because of growing sales, strong financials
of leading players and ever increasing urbanization. Reforms announced in second
half of the year like opening of retail sector to foreign companies will add further to
the growth of the sector.
Brands
HUL is the market leader in Indian consumer products with presence in over 20
consumer categories such as soaps, tea, detergents and shampoos amongst others
with over 700 million Indian consumers using its products. Eighteen of HUL's brands
featured in the ACNielsen Brand Equity list of 100 Most Trusted Brands Annual
Survey (2012). The company has a distribution channel of 6.3 million outlets and
owns 35 major Indian brands. Its brands include:
Food brands:
Bru coffee
Lipton tea
Homecare Brands:
ActiveWheel detergent
Vim dishwash
LEVER Ayush Therapy ayurvedic health care and personal care products
Close Up toothpaste
Dove skin cleansing & hair care range: bar, lotions, creams and antiperspirant deodorants
Hamam
Pears soap
Pepsodent toothpaste
Rexona soap
Sunsilk shampoo
Sure anti-perspirant
TRESemm
The company bagged four awards at the Spikes Asia Awards 2012, held in
September. The awards included one Grand Prix one Gold Award and two Silver
Awards.
HULs Chhindwara Unit won the National Safety Award for outstanding performance
in Industrial Safety. These awards were instituted by the Union Ministry of Labour
and Employment in 1965.
HUL was one of the eight Indian companies to be featured on the Forbes list of
World's Most Reputed companies in 2007.
In July 2012 Hindustan Unilever Limited won the Golden Peacock Occupational
Health and Safety Award for 2012 in the FMCG category for its safety and health
initiatives and continuous improvement on key metrics.
Pond's Talcum Powder's packaging innovation has bagged a Silver Award at the
prestigious 24th DuPont Global Packaging Award, in May 2012.The brand was
recognised for cost and waste reduction.
In May 2012, HUL & Star Bazaar bagged the silver award for 'Creating Consumer
Value through Joint Promotional and Event Forecasting' at the 13th ECR Efficient
Consumer Response Asia Pacific Conference.
In 2011, HUL was named the most innovative company in India by Forbes and
ranked 6th in the top 10 list of most innovative companies in the world.
Hindustan Unilever Ltd received the National Award for Excellence in Corporate
Governance 2011 of the Institute of Company Secretaries of India (ICSI) for
excellence in corporate governance
In 2012, Hindustan Unilever emerged as the No. 1 employer of choice for B-School
students who will graduate in 2012. In addition, HUL also retained the 'Dream
Employer' status for the 3rd year running
Hindustan Unilever ranked No. 2 in Fortune India's Most Admired Companies list,
which was released by Fortune India in partnership with the Hay Group. The
company received the highest scores for endurance and financial soundness
HUL was ranked 39th in The Brand Trust Report (2011) published by Trust Research
Advisory. Seven HUL brands also featured in the list: Lux, Ponds, Dove, Lakme,
Axe, Sunsilk and Pepsodent.
HUL emerged as the top 'Dream Employer' as well as the top company considered
for application in the annual B-School Survey conducted by Nielsen in November
2010. This was the second successive year that HUL has been rated as the top
'Dream Employer' in India. HUL has also emerged as the top employer of choice
among the top six Indian Institutes of Management (IIMA, B, C, L, K and I).
HUL won three awards at the 'CNBC Awaaz Storyboard Consumer Awards in 2011
Most Recommended FMCG Company of the Year; Most Consumer Conscious
Company of the Year and Digital Marketer of the Year.
The company was felicitated in April 2010 for receiving the highest number of
patents in the year 2009 at Annual Intellectual Property Awards 2010.
In 2007, Hindustan Unilever was rated as the most respected company in India for
the past 25 years by Businessworld, one of India's leading business magazines.
The rating was based on a compilation of the magazine's annual survey of India's
most reputed companies over the past 25 years.
HUL is one of the country's largest exporters; it has been recognised as a Golden
Super Star Trading House by the Government of India.
2. ITC
ITC Limited (BSE: 500875) or ITC is an Indian public conglomerate company
headquartered in Kolkata, West Bengal, India. Its diversified business includes four
segments: Fast Moving Consumer Goods (FMCG), Hotels, Paperboards, Paper &
Packaging and Agri Business. ITC's annual turnover stood at $7 billion and market
capitalization of over $34 billion. The company has its registered office in Kolkata. It
started off as the Imperial Tobacco Company of India and was rechristened to India
Tobacco Company in 1970, I.T.C. Limited in 1974 and finally ITC Limited in 2001.
The company is headed by Yogesh Chander Deveshwar. It employs over 29,000
people at more than 60 locations across India and is listed on Forbes 2000. ITC
Limited completed 100 years on 24 August 2010.
ITC has a diversified presence in FMCG (Fast Moving Consumer Goods), Hotels,
Paperboards & Specialty Papers, Packaging, Agri-Business and Information
Technology. While ITC is a market leader in its traditional businesses of Hotels,
Paperboards, Packaging, Agri-Exports and Cigarettes, it is rapidly gaining market
share even in its nascent businesses of Packaged Foods & Confectionery, Branded
Apparel, Personal Care and Stationery. Meera Shankar joined the board of ITC Ltd
as the first women director in its history. She is an additional non-executive director
of the cigarettes-FMCG-hotel major.
History
ITC was formed on August 24, 1910 under the name Imperial Tobacco Company of
India Limited. Later the name of the Company was changed from Imperial Tobacco
Company of India Limited to India Tobacco Company Limited in 1970 and then to
I.T.C. Limited in 1974. ITC contains a wide range of businesses - Cigarettes &
Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty
Papers, Agri-business, Foods, Lifestyle Retailing, Education & Stationery and
Personal Care . Finally the company changed its name to 'ITC Limited on
September 2001.
The earlier decades of the Company's existence were mainly depending on growth
and consolidation of the Cigarettes and Leaf Tobacco businesses, In the Seventies it
started to transform into a corporate. In 1975 the Company launched its Hotels
business with the acquisition of a hotel in Chennai which was rechristened 'ITCWelcomgroup Hotel Chola'. The objective of ITC's entry into the hotels business was
rooted in the concept of creating value for the nation In 1979, ITC entered the
Paperboard business by promoting ITC Bhadrachalam Paperboards Limited, which
today has become the market leader in India
In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint
venture. Since inception, its shares have been held by ITC, British American
Tobacco and various independent shareholders in Nepal. In August 2002, Surya
Tobacco became a subsidiary of ITC Limited and its name was changed to Surya
Nepal Private Limited (Surya Nepal). Also in 1990, leveraging its tends to 10 states
covering over 4 million farmers. ITC's first rural mall, christened 'Choupal Saagar'
was inaugurated in August 2004 at Sehore. On the rural retail front, 24 'Choupal
Saagars' are now operational in the 3 states of Madhya Pradesh, Maharashtra and
Uttar Pradesh.
In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with
the launch of Expressions range of greeting cards. A line of premium range of
notebooks under brand Paperkraft was launched in 2002. To augment its offering
and to reach a wider student population, the popular range of notebooks was
launched under brand Classmate in 2003. Classmate over the years has grown
to become Indias largest notebook brand and has also increased its portfolio to
occupy a greater share of the school bag. Years 2007- 2009 saw the launch of
Children Books, Slam Books, Geometry Boxes, Pens and Pencils under the
Classmate brand. In 2008, ITC repositioned the business as the Education and
Stationery Products Business and launched India's first environment friendly
premium business paper under the Paperkraft Brand. Paperkraft offers a diverse
portfolio in the premium executive stationery and office consumables segment.
Paperkraft entered new categories in the office consumable segment with the launch
of Textliners, Permanent Ink Markers and White Board Markers in 2009
ITC also entered the Lifestyle Retailing business with the Wills Sport range of
international quality relaxed wear for men and women in 2000. The Wills Lifestyle
chain of exclusive stores later expanded its range to include Wills Classic formal
wear (2002) and Wills Clublife evening wear (2003 ).
In 2000, ITC spun off its information technology business into a wholly owned
subsidiary, ITC Infotech India Limited, to more aggressively pursue emerging
opportunities in this area. Today ITC Infotech is one of Indias fastest growing global
IT and IT-enabled services companies and has established itself as a key player in
offshore outsourcing, providing outsourced IT solutions and services to leading
global customers across key focus verticals - Manufacturing, BFSI (Banking,
Financial Services & Insurance), CPG&R (Consumer Packaged Goods & Retail),
THT (Travel, Hospitality and Transportation) and Media & Entertainment.
ITC's foray into the Foods business is an outstanding example of successfully
blending multiple internal competencies to create a new driver of business growth. It
began in August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian
gourmet dishes. In 2002, ITC entered the confectionery and staples segments with
the launch of the brands mint-o and Candyman confectionery and Aashirvaad atta
(wheat flour). 2003 witnessed the introduction of Sunfeast as the Company entered
the biscuits segment. ITC's entered the fast growing branded snacks category with
Bingo! in 2007. In just over a decade, the Foods business has grown to a significant
size with over 200 differentiated products under six distinctive brands, with an
enviable distribution reach, a rapidly growing market share and a solid market
standing.
In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the
entire value chain found yet another expression in the Safety Matches initiative. ITC
now markets popular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega
and Aim Metro. ITC's foray into the marketing of Agarbattis (incense sticks) in 2003
marked the manifestation of its partnership with the cottage sector. ITC's popular
agarbattis brands include Spriha and Mangaldeep across a range of fragrances like
Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa.
ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath &
body care products for men and women in July 2005. Continuing with its tradition of
bringing world class products to Indian consumers the Company launched 'Fiama Di
Wills', a premium range of Shampoos, Shower Gels and Soaps in September,
October and December 2007 respectively. The Company also launched the 'Superia'
range of Soaps and Shampoos in the mass-market segment at select markets in
October 2007 and Vivel De Wills & Vivel range of soaps in February and Vivel range
of shampoos in June 2008
Cigarettes: W.D. & H.O. Wills, Gold Flake Kings, Gold Flake Premium, Gold
Flake Super Star, Navy Cut, Insignia, India Kings, Classic (Verve, Menthol,
Menthol Rush, Regular, Citric Twist, Mild & Ultra Mild), 555, Benson &
Hedges, Silk Cut, Scissors, Capstan, Berkeley, Bristol, Lucky Strike, Players
and Flake.
Personal care: (Fiama di Wills; Vivel; Essenza di Wills; Superia; Vivel di Wills
brands of products in perfumes, haircare and skincare)
Hotels: ITC's hotels (under brands including WelcomHotel) have evolved into
being India's second largest hotel chain with over 80 hotels throughout the
country. ITC is also the exclusive franchisee in India of two brands owned by
Sheraton International Inc.- The Luxury Collection and Sheraton which ITC
uses in association with its own brands in the luxury 5 star segment. Brands
in the hospitality sector owned and operated by its subsidiaries include
Fortune and WelcomeHeritage brands.
Infotech (through its fully owned subsidiary ITC Infotech India Limited which is
a SEI CMM Level 5 company)
3. NESTLE
Nestl is a Swiss multinational nutritional, snack food, and health-related consumer
goods company headquartered in Vevey, Switzerland. It is the largest food company
in the world measured by revenues.
Nestl's products include baby food, bottled water, breakfast cereals, coffee,
confectionery, dairy products, ice cream, pet foods and snacks. 29 of Nestl's
brands have annual sales of over 1 billion Swiss francs (about $ 1.1 billion),
including Nespresso, Nescaf, KitKat, Smarties, Nesquik, Stouffer's, Vittel, and
Maggi. Nestl has around 450 factories, operates in 86 countries, and employs
around 328,000 people. It is one of the main shareholders of L'Oral, the world's
largest cosmetics company.
Nestl was formed in 1905 by the merger of the Anglo-Swiss Milk Company,
established in 1866 by brothers George Page and Charles Page, and Farine Lacte
Henri Nestl, founded in 1866 by Henri Nestl. The company grew significantly
during the First World War and again following the Second World War, expanding its
offerings beyond its early condensed milk and infant formula products. The company
has made a number of corporate acquisitions, including Crosse & Blackwell in 1950,
Findus in 1963, Libby's in 1971, Rowntree Mackintosh in 1988 and Gerber in 2007.
Nestl has a primary listing on the SIX Swiss Exchange and is a constituent of the
Swiss Market Index. It has a secondary listing on Euronext. In 2011, Nestl was
listed No. 1 in the Fortune Global 500 as the world's most profitable corporation.
With a market capitalization of $ 200 billion, Nestl ranked No. 13 in the FT Global
2011.
History
Nestl's origins date back to 1866, when two separate Swiss enterprises were
founded that would later form the core of Nestl. In the succeeding decades, the two
Nestl felt the effects of the Second World War immaediately. Profits dropped from
US$20 million in 1938, to US$6 million in 1939. Factories were established in
developing countries, particularly in Latin America. Ironically, the war helped with the
introduction of the company's newest product, Nescaf ("Nestl's Coffee"), which
became a staple drink of the US military. Nestl's production and sales rose in the
wartime economy.
The end of World War II was the beginning of a dynamic phase for Nestl. Growth
accelerated and numerous companies were acquired. In 1947 Nestl merged with
Maggi, a manufacturer of seasonings and soups. Crosse & Blackwell followed in
1950, as did Findus (1963), Libby's (1971) and Stouffer's (1973). Diversification
came with a shareholding in L'Oral in 1974. In 1977, Nestl made its second
venture outside the food industry, by acquiring Alcon Laboratories Inc.
In 1984, Nestl's improved bottom line allowed the company to launch a new round
of acquisitions, notably American food giant Carnation and the British confectionery
company Rowntree Mackintosh in 1988, which brought the Willy Wonka brand
among others to Nestl.
The first half of the 1990s proved to be favourable for Nestl. Trade barriers
crumbled, and world markets developed into more or less integrated trading areas.
Since 1996, there have been various acquisitions, including San Pellegrino (1997),
Spillers Petfoods (1998), and Ralston Purina (2002). There were two major
acquisitions in North America, both in 2002 in June, Nestl merged its U.S. ice
cream business into Dreyer's, and in August a US$2.6 billion acquisition was
announced of Chef America, the creator of Hot Pockets. In the same time-frame,
Nestl came close to purchasing the iconic American company Hershey's, one of its
fiercest confectionery competitors, although the deal eventually fell through. Another
recent purchase included the Jenny Craig weight-loss program, for US$600 million.
In December 2005, Nestl bought the Greek company Delta Ice Cream for
240 million. In January 2006, it took full ownership of Dreyer's, thus becoming the
world's largest ice cream maker, with a 17.5% market share.
In November 2006, Nestl purchased the Medical Nutrition division of Novartis
Pharmaceutical for $2.5B, also acquiring, in 2007, the milk-flavouring product known
as Ovaltine.
In April 2007, returning to its roots, Nestl bought US baby-food manufacturer
Gerber for $5.5 billion.
In December 2007, Nestl entered into a strategic partnership with a Belgian
chocolate maker, Pierre Marcolini
Nestl agreed to sell its controlling stake in Alcon to Novartis on 4 January 2010.
The sale was to form part of a broader US$39.3 billion offer, by Novartis, for full
acquisition of the worlds largest eye-care company.
On 1 March 2010, Nestl concluded the purchase of Kraft Foods's North American
frozen pizza business for $3.7 billion.
In July 2011, Nestl SA agreed to buy 60 percent of Hsu Fu Chi International Ltd. for
about $1.7 billion. On 23 April 2012, Nestl agreed to acquire Pfizer Inc.'s infantnutrition unit for $11.9 billion Before the acquisition, there was a 'bidding war'
between the three shareholders Nestl, Mead Johnson Nutrition and Danone. Each
of the companies held a share, with Nestl holding the biggest share (17%)
(Johnson held 15%, Danone 13%).
Products
Main article: List of Nestl brands
Nestl has some 8,000 brands, with a wide range of products across a number of
markets, including coffee, bottled water, milkshakes and other beverages, breakfast
cereals, infant foods, performance and healthcare nutrition, seasonings, soups and
sauces, frozen and refrigerated foods, and pet food. Nestl's brands include:
Coffee mate
Dolce Gusto
Nescaf
Nespresso
Nestea and Enviga (controlled by the joint venture with The Coca-Cola Company, called Bev
Ricor
Special.T
Carnation (now part of Alaska Milk Corporation in the Philippines, but under a long-term licen
Caro
Juicy Juice
La Laitire (controlled by the joint venture with Lactalis)[22]
Milo
Nesquik
Ovaltine
Nestl Crunch
PowerBar
Quality Street
Rolo (licensed to The Hershey Company in U.S.)
Rowntree products
Smarties
Toffee Crisp
Wonka products
4. Godrej Group
Godrej Group is an Indian conglomerate headquartered in Mumbai, Maharashtra,
India. It was founded by Ardeshir Godrej and Pirojsha Godrej in 1897, Lalbaug,
Mumbai. It operates in diverse sectors such as real estate, consumer products,
industrial engineering, appliances, furniture, security and agricultural products,to
name a few. It's turnover is in excess of 3.3 billion dollars.
Background
Godrej Group is one of the largest conglomerates based in Mumbai, India, involved
in various industries that include appliances, precision equipment, machine tools,
furniture, healthcare, interior solutions, office equipment, food-processing, security,
materials handling and industrial storage solutions, construction and information
technology. Its products include Locks, access control systems, security systems
and safes, typewriters and word processors, rocket launchers, refrigerators and
furniture, outsourcing serble oils and chemical, mosquito repellents, car perfumes,
chicken and agri-products, material handling equipment like FORKLIFT trucks,
stackers, tyre handlers, sweeping machines, access equipment etc. The Group is
headed by Adi Godrej and Jamshyd Godrej.
Godrej Industries
Chemicals
Veg Oils
FMCG
Keyline Brands UK
Nutrine
AGRI
Godrej Agrovet
Animal Feeds
Oil Palm
Agri Inputs
Godrej Aadhaar
Nature's Basket
Plant Biotech
Services
Godrej Properties
Executive Magazine named P&G the best overall company for leadership
development in its list of the "40 Best Companies for Leaders".
History
William Procter, a candlemaker, and James Gamble, a soapmaker, emigrated from
England and Ireland respectively. They settled in Cincinnati initially and met when
they married sisters, Olivia and Elizabeth Norris Alexander Norris, their father-inlaw, called a meeting in which he persuaded his new sons-in-law to become
business partners. On October 31, 1837, as a result of the suggestion, Procter &
Gamble was created.
In 18581859, sales reached $1 million. By this point, approximately 80 employees
worked for Procter & Gamble. During the American Civil War, the company won
contracts to supply the Union Army with soap and candles. In addition to the
increased profits experienced during the war, the military contracts introduced
soldiers from all over the country to Procter & Gamble's products.
In the 1880s, Procter & Gamble began to market a new product, an inexpensive
soap that floats in water. The company called the soap Ivory. William Arnett Procter,
William Procter's grandson, began a profit-sharing program for the company's
workforce in 1887. By giving the workers a stake in the company, he correctly
assumed that they would be less likely to go on strike.
The company began to build factories in other locations in the United States
because the demand for products had outgrown the capacity of the Cincinnati
facilities. The company's leaders began to diversify its products as well and, in 1911,
began producing Crisco, a shortening made of vegetable oils rather than animal fats.
As radio became more popular in the 1920s and 1930s, the company sponsored a
number of radio programs. As a result, these shows often became commonly known
as "soap operas."
The company moved into other countries, both in terms of manufacturing and
product sales, becoming an international corporation with its 1930 acquisition of the
Thomas Hedley Co., based in Newcastle upon Tyne, England. Procter & Gamble
maintained a strong link to the North East of England after this acquisition.
Numerous new products and brand names were introduced over time, and Procter &
Gamble began branching out into new areas. The company introduced Tide laundry
detergent in 1946 and Prell shampoo in 1947. In 1955, Procter & Gamble began
selling the first toothpaste to contain fluoride, known as Crest. Branching out once
again in 1957, the company purchased Charmin Paper Mills and began
manufacturing toilet paper and other paper products. Once again focusing on
laundry, Procter & Gamble began making Downy fabric softener in 1960 and Bounce
fabric softener sheets in 1972. One of the most revolutionary products to come out
on the market was the company's Pampers, first test-marketed in 1961. Prior to this
point disposable diapers were not popular, although Johnson & Johnson had
developed a product called Chux. Babies always wore cloth diapers, which were
leaky and labor intensive to wash. Pampers provided a convenient alternative, albeit
at the environmental cost of more waste requiring landfilling.
Procter & Gamble acquired a number of other companies that diversified its product
line and significantly increased profits. These acquisitions included Folgers Coffee,
Norwich Eaton Pharmaceuticals (the makers of Pepto-Bismol), Richardson-Vicks,
Noxell (Noxzema), Shulton's Old Spice, Max Factor, and the Iams Company, among
others. In 1994, the company made headlines for big losses resulting from leveraged
positions in interest rate derivatives, and subsequently sued Bankers Trust for fraud;
this placed their management in the unusual position of testifying in court that they
had entered into transactions that they were not capable of understanding. In 1996,
Procter & Gamble again made headlines when the Food and Drug Administration
approved a new product developed by the company, Olestra. Also known by its
brand name 'Olean', Olestra is a lower-calorie substitute for fat in cooking potato
chips and other snacks.
Procter & Gamble has dramatically expanded throughout its history, but its
headquarters still remains in Cincinnati.
In January 2005 P&G announced an acquisition of Gillette, forming the largest
consumer goods company and placing Unilever into second place. This added
brands such as Gillette razors, Duracell, Braun, and Oral-B to their stable. The
acquisition was approved by the European Union and the Federal Trade
Commission, with conditions to a spinoff of certain overlapping brands. P&G agreed
to sell its SpinBrush battery-operated electric toothbrush business to Church &
Dwight. It also divested Gillette's oral-care toothpaste line, Rembrandt. The
deodorant brands Right Guard, Soft & Dri, and Dry Idea were sold to Dial
Corporation.[5] The companies officially merged on October 1, 2005. Liquid Paper,
and Gillette's stationery division, Paper Mate were sold to Newell Rubbermaid. In
2008, P&G branched into the record business with its sponsorship of Tag Records,
as an endorsement for TAG Body Spray.
P&G's dominance in many categories of consumer products makes its brand
management decisions worthy of study. For example, P&G's corporate strategists
must account for the likelihood of one of their products cannibalizing the sales of
another.
On August 24, 2009, the Ireland-based pharmaceutical company Warner Chilcott
announced they had bought P&G's prescription-drug business for $3.1 billion.
P&G exited the food business in 2012 when it sold its Pringles snack food business
to Kellogg's. The company had previously sold Jif peanut butter and Folgers coffee
in separate transactions to Smucker's.
Procter and Gamble was a tier one sponsor of London's 2012 Olympic Games and
sponsored 150 Athletes.
Operations
As of July 1, 2011, the company structure is categorized into two "Global Business
Units" with each one further divided into "Business Segments" according to the
company's 2011 Annual Report. Dimitri Panayotopoulos is Vice Chairman of Global
Business Units
Beauty segment
Grooming segment
hospital in New Brunswick, New Jersey. Upon his death in 1910, he was succeeded
in the presidency by his brother James Wood Johnson until 1932, and then by his
son, Robert Wood Johnson II.
Robert Wood Johnson's granddaughter, Mary Lea Johnson Richards, was the first
baby to appear on a Johnson & Johnson baby powder label. His great-grandson,
Jamie Johnson, made a documentary called Born Rich about the experience of
growing up as the heir to one of the world's greatest fortunes.
Consumer brands
The famous Johnson's Baby Shampoo (Johnson & Johnson consumer brand)
Acuvue
Actifed
Aveeno
Bactidol
Band-Aid
Benadryl
Benecol
Bengay
Benylin
Bonamine
Calpol
Calcough
Calprofen
Calgel
Calrub
Carefree
Coach
Coach Professional
Coach Sport
Codral
Combantrin
Compeed
Conceptrol
Cortaid
Cortef
Delfen
Desitin
Dolormin
E.P.T.
Efferdent
Euthymol
First-Aid
Gynol
Healthy Woman
Inadine
Imodium
Johnson's Baby
Jontex
K-Y
Lactaid
Listerine
Listermint
Lubriderm
Meds ]
Micatin
Monistat
Micralax
Migraleve
Modess
Motrin
Motrin Children
Myadec
Mylanta
Nasalcrom
Neko
Neosporin
Neutrogena
Nicoderm
Nicorette
Nizoral
Nu-Gauze
O.B.
OneTouch
Pediacare
Penaten
Pepcid
Pepcid AC
Polysporin
Tata Global Beverages Limited (formerly Tata Tea Limited) is an Indian multinational
non-alcoholic beverages company headquartered in Kolkata, West Bengal, India
and a subsidiary of the Tata Group. It is the world's second-largest manufacturer and
distributor of tea and a major producer of coffee
Tata Global Beverages markets tea under the major brands Tata Tea, Tetley, Good
Earth Teas and JEMA. Tata Tea is the biggest-selling tea brand in India, Tetley is
the biggest-selling tea brand in the United Kingdom and Canada and the second
biggest-selling in the United States and JEMA is the biggest-selling tea brand in
the Czech Republic .
Tata Global Beverages ventured into the Indian cafe market with a 50/50 joint
venture with Starbucks Coffee Company. The coffee shops branded as "Starbucks
Coffee - A Tata Alliance" will source coffee beans from Tata Coffee, a subsidiary
company of Tata Global Beverages.
History
1980 to 1990
In the early 1980s, the tea industry in India was experiencing rising input and labor
costs and dwindling margins as well as high taxes. India was facing competition on
the world market not just from China, but also from other countries entering the
business.
In 1983, Tata Tea bought the stake belonging to the James Finlay group to form the
individual entity Tata Tea. In the same year, the company decided to move from the
commodities business to consumer branding. The first brand Tata Tea was
introduced. This was followed by other brands like Kannan Devan, Agni, Gemini and
Chakra Gold. In spite of being the largest market in the world, the concept of
branded tea took time to be accepted.
In 1987, Tata Tea set up a fully owned subsidiary, Tata Tea Inc., in the USA.
1990 to 2000
In the 1990s, Tata Tea decided to take its brands into the global markets. It formed
an export joint venture with Britain's Tetley Tea in 1992. Other new enterprises
included a majority interest in Consolidated Coffee Ltd. (Tata Coffee Ltd.) and a joint
venture to manage agricultural estates in Sri Lanka. Tata Tea Inc. in the United
States processed and marketed instant tea from its facility in Florida, based on
sourcing of instant tea products out of Munnar and Kerala. In 1993, they entered into
a joint venture with Allied Lyons PLC in the UK to form Estate Tata Tetley.
In the mid-1990s, Tata Tea attempted to buy Tetley and the Lankan JVC acquired
51% shareholding in Watawala Plantations Ltd.
In 1997 the company was embroiled in a major scandal known as the "Tata Tapes
controversy" which related to funds the company provided to the outlawed United
Liberation Front of Asom (ULFA), an armed-struggle group operating in Assam.
By 1999, Tata Teas brands had a combined market share of 25% in India.The
company had 74 tea gardens and was producing 62 million kilograms of tea a year,
two-thirds of it packaged and branded. Towards the end of the year, the tea business
was hit by a drought in much of India. In addition, Russia, once the largest buyer of
Indian tea, temporarily withdrew from the market.
2000 to 2010
An important step for Tata Tea was the acquisition of the Tetley Group (based in the
United Kingdom) in 2000. It was a 271 million ($432 million) leveraged buyout. Tata
Tea reportedly outbid the American conglomerate Sara Lee in what was described
as the largest takeover of a foreign company by an Indian one to date. At the time,
Tetley was the world's second largest tea company after Unilever's Brooke BondLipton and had an annual turnover of 300 million. It was the market leader in Britain
and Canada and a popular brand in the United States, Australia and the Middle
East.
Established in 1837, Tetley was the first British tea company to introduce the tea bag
to the UK in 1953. The tea bag was followed by the first round tea bag in 1989 and
the 'no drip, no mess' drawstring bag in 1997. Tetley now contributes for around two
thirds of the total turnover of Tata Tea.
From 2005, Tata Tea began a restructuring exercise to divest direct ownership of
plantations in India, a process facilitated by subsidised loans from the World Bank's
International Finance Corporation.
In 2006, Tata Tea acquired Eight O'Clock Coffee, a US based coffee producer from
Gryphon Investors for $220m.
In 2007, Tata Tea launched the campaign Jaago Re! to awaken youth to social
issues. The campaign was extended into 2008. In 2009, their campaign revolve
around the issue of corruption with a new adline 'Ab Se Khilana Bandh, Pilana
Shuru'.
The international trade union IUF criticized the company in 2009 for not allowing
statutory maternity leave to pregnant tea pluckers, and for locking out 1,000 workers
on the Nowera Nuddy Tea Estate in West Bengal for so long that the local
government began distributing food coupons for emergency rations to workers and
their families. In May 2010, a crop sprayer died of suspected poisoning on a Tata
estate in Assam, leading to protests at which two more workers were shot dead by
riot police.
2010 to present
On 30 January 2012, Tata Global Beverages and Starbucks announced the creation
of a 50-50 joint venture called Tata Starbucks Limited, which will own and operate
Starbucks outlets branded as Starbucks Coffee "A Tata Alliance" in India. The stores
will start beginning to operate in 2012, launching initially in Delhi and Mumbai.
Operations
The company was rechristened as Tata Global Beverages to include the range of
health and nutritional beverages it wants to enter into. Via subsidiary companies,
Tata Global Beverages manufactures 70 million kilograms of tea in India, controls 54
tea estates, ten tea blending and packaging factories and employs around 59,000
people. The company owns 51 tea estates in India and Sri Lanka, especially in
Assam, West Bengal in eastern India and Kerala in the south. The company is the
largest manufacturer of Assam tea and Darjeeling tea and the second-largest
manufacturer of Ceylon tea.
Set up in 1964 as a joint venture with UK based James Finlay and Company to
develop value-added tea, Tata Global Beverages has now product and brand
presence in 50 countries. It is one of India's first multinational companies. The
operations of Tata Global Beverages and its subsidiaries focus on branded product
offerings in tea, but with a significant presence in plantation activity in India and Sri
Lanka.
The consolidated worldwide branded tea business of Tata Global Beverages
contributes to around 86 per cent of its consolidated turnover with the remaining 14
per cent coming from bulk tea, coffee and investment income. The company is
headquartered in Bangalore. With an area of approx 159 km under tea cultivation,
Tata Global Beverages produces around 30 million kg of black tea annually . Instant
tea is used for light density 100% teas, iced tea mixes and in the preparation of
ready-to-drink (RTD) beverages.
Tata Global Beverages owns five brands in India: Tata Tea, Tetley, Kanan Devan,
Chakra Gold, and Gemini. The company has a 100% export-oriented unit (KOSHER
and HACCP certified) manufacturing instant tea in Munnar, Kerala, which is the
largest such facility outside the United States. Tata Global Beverages has
subsidiaries in Australia, Great Britain, United States, Czech Republic and India.
The company has 70 researchers that study ayurvedic herbs and minerals. An
Hepatic drug, named Liv.52, is its flagship product, first introduced in 1955.
The Himalaya Drug Company produces, sells, and distributes pharmaceutical-grade
ayurvedic drugs and therapies for customers in India and internationally. It offers
pharmaceutical products for children, women, men, and general health; herbal and
oral care products; skincare products, including body lotions, face packs and
tonners, facial cleansers, fairness and lip care products, moisturizers, skin nutrients,
and soaps; and dental creams. The company also provides hair care products,
including anti-dandruff hair creams, oils, and shampoos; protein conditioners
shampoos and hair creams; and anti-hair loss creams, fall hair oils, and fall
shampoos. In addition, it offers capsules, acne-n-pimple.
9. Amul
Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India.
The word Amul is derived from the Sanskrit word Amulya meaning invaluable. The
co-operative is also sometimes referred to by the unofficial backronym: Anand Milk
Union Limited.
Formed in 1946, it is a brand managed by a cooperative body, the Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by
3.03 million milk producers in Gujarat.
Amul spurred India's White Revolution, which made the country the world's largest
producer of milk and milk products. In the process Amul became the largest food
brand in India and has also ventured into markets overseas.
Dr Verghese Kurien, founder-chairman of the GCMMF for more than 30 years
(19732006), is credited with the success of Amul.
History
The Kaira District Co-operative Milk Producers' Union Ltd. was registered on 1
December 1946 as a response to the exploitation of marginal milk producers by
traders or agents of the only existing dairy, the Polson (brand) dairy, in the small
town of Anand (in Kaira District of Gujarat). Milk Producers had to travel long
distances to deliver milk, which often went sour in summer, to Polson. The prices of
buffalo and cow milk were arbitrarily determined. Moreover, the government at that
time had given monopoly rights to Polson to collect milk from Anand and supply it to
Bombay city.
Angered by the unfair and manipulative trade practices, the farmers of Kaira
approached Sardar Vallabhbhai Patel under the leadership of local farmer leader
Tribhuvandas K. Patel. He advised them to form a cooperative and supply milk
directly to the Bombay Milk Scheme instead of Polson (who did the same but gave
them low prices). He sent Morarji Desai to organise the farmers. In 1946, the milk
farmers of the area went on a strike which led to the setting up of the cooperative to
collect and process milk. Milk collection was also decentralized, as most producers
were marginal farmers who could deliver atmost 12 litres of milk per day.
Cooperatives were formed for each village too.
The Cooperative was further developed and managed by Dr.Verghese Kurien along
with H.M. Dalaya. Dalaya's innovation of making skim milk powder from buffalo milk
for the first time anywhere in the world and a little later, along with Kurien's help,
making it on a commercial scale, led to the first modern dairy of the cooperative at
Anand, which would successfully compete against established players in the market.
The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon
spread to Anand's neighbourhood in Gujarat, and within a short span, five unions in
other districts Mehsana, Banaskantha, Baroda, Sabarkantha and Surat were set
up. In order to combine forces and expand the market while saving on advertising
and avoid competing against each other, the GCMMF, an apex marketing body of
these district cooperatives was set up in 1973. The Kaira Union which had the brand
name of Amul with it since 1955, transferred it to GCMMF.
Company info
The GCMMF is the largest food products marketing organisation of India. It is the
apex organisation of the Dairy Cooperatives of Gujarat. Over the last five and a half
decades, Dairy Cooperatives in Gujarat have created an economic network that links
more than 3.1 million village milk producers with millions of consumers in India .
These cooperatives collect on an average 9.4 million litres of milk per day from their
producer members, more than 70% of whom are small, marginal farmers and
landless labourers and include a sizeable population of tribal folk and people
belonging to the scheduled castes.
The turnover of GCMMF (AMUL) during 201011 was 97.74 billion (US$1.8 billion).
It markets the products, produced by the district milk unions in 30 dairy plants. The
farmers of Gujarat own the largest state of the art dairy plant in Asia Mother Dairy,
Gandhinagar, Gujarat which can handle 3.0 million litres of milk per day and
process 160 MTs of milk powder daily. Amul Dairy established at Anand is the crown
glory of the district. By launching the milk business in a scientific way, the dairy
heralded White Revolution in Gujarat which is well established now. The dairy has
provided the farmers an important source of supplementary income through animal
husbandry. Today it has become a world renowned organisation.
On 18 Aug 2012, Vipul Chaudhary of Mehsana district's milk cooperative was
elected chairman of GCMMF
Products
Amul's product range includes milk powders, milk, butter, ghee, cheese, Masti Dahi,
Yoghurt, Buttermilk, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns,
flavoured milk, basundi, Amul Pro brand and others. Amul PRO is a recently
launched brown beverage just like bournvita and horlicks offering whey protein, DHA
and essential nutrients. In January 2006, Amul launched India's first sports drink
Stamina, which competes with Coca Cola's Powerade and FMCGCo's Gatorade.
Amul also offers mithaimate which successfully competes with milkmaid by nestle by
offering more fat% at lower price.
In August 2007, Amul introduced Kool Koko, a chocolate milk brand extending its
product offering in the milk products segment. Other Amul brands are Amul Kool, a
low calorie thirst quenching drink; Masti Butter Milk; Kool Cafe, ready to drink coffee
and India's first sports drink Stamina.
Amul's Icecreams are made from milk fat and thus are icecreams in real sense of
the word, while many brands in India sell frozen desserts made from vegetable fat.
Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy Federation
Marketing Award for 2007
wholesale level, thus pitching it in competition with Danone, which had recently
established its own dairy business.
Biscuits
The company's factories have an annual capacity of 433,000 tonnes. The brand
names of biscuits include VitaMarieGold, Tiger, Nutrichoice Junior,Good day, 50 50,
Treat, Pure Magic, Milk Bikis, Good Morning, Bourbon, Thin Arrowroot, Nice, Little
Hearts and many more.
Tiger, the mass market brand, realised $150.75 million in sales including exports to
countries including the U.S. and Australia, or 20% of Britannia revenues in 2006.
In a separate dispute from the shareholder matters, the company alleged in 2006
that Danone had violated its intellectual property rights in the Tiger brand by
registering and using Tiger in several countries without its consent. Britannia claimed
the company found out that Danone had launched the Tiger brand in Indonesia in
1998, and later in Malaysia, Singapore, Pakistan and Egypt, when it attempted to
register the Tiger trademark in some of these countries in 2004. Whilst it was initially
reported in December 2006 that agreement had been reached, it was reported in
September 2007 that a solution remained elusive. In the meantime since Danone's
biscuit business has been taken over by Kraft, the Tiger brand of biscuits in Malaysia
was renamed Kraft Tiger Biscuits in September 2008.
Britannia initiated legal action against Danone in Singapore in September 2007. The
dispute was resolved in 2009 with Britannia securing rights to the Tiger brand
worldwide, and Danone paying Rs 220 million to utilise the brand.
the
impact
of
advertisements
in
term
of
consumer
OBJECTIVES
1. To find the role of media efficiency in advertisement
2. To find out the factors influencing the choice of brand.
3. To know consumers preference towards the FMCG brands.
.
(a) To know the reasons for the preference of their favourite brands.
(b) To check the brand loyalty of consumers towards their favourite brand.
The main purpose of this consumer survey is to see the recall ability of the
consumers and also to see the factors affecting the choice of brand and an
impact of advertisement on the purchase of FMCG.
REVIEW OF LITERATURE
Advertising is more than tool for selling goods and services. It has one overriding
task, to position a brand in the prospect's perception or perceptual space in relation
to competitors, so as to create distinctness and preference.
To formulate the problem scientifically and to point out the importance of undertaking
this study, it is essential to present a brief review of researches undertaking in this
area. Although the review involved a large number of studies, only a few studies
which have direct and indirect bearing on the present study have been reviewed in
this chapter. Some marketing researchers have concluded that brands are one of
the most valuable assets a company has, as brand equity is one of the factors which
can increase the financial value of a brand to the brand owner, although not the only
one. The brand can add significant value when it is well recognized and has positive
associations in the mind of the consumer. Brand equity is an intangible asset that
depends on associations made by the consumer. High brand equity levels are
known to lead higher consumer preferences and purchase intentions (Cobb-Walgren
et al. 1995) as well as higher stock returns (Aaker and Jacobson, 1994). brand
equity occurs when the consumer is familiar with the brand and holds some
favorable, strong, and unique brand associations in the memory.( Kamakura
&Russell 1993
(Lassar et al.1995)) The consumers perception of the overall superiority of a product
carrying that brand name when compared to other brands. Five
perceptual dimension of brand equity includes performance, social
image, value, trustworthiness and attachment.( Lassar et al.(1995)). Brand equity is:
(1) Loyalty (brands real or potential price premium),
(2) loyalty (customer satisfaction based), (3) perceived comparative
quality, (4) perceived brand leadership, (5) perceived brand value
Unnava and Brunkrant (1991) did a study whose main objective was to
compare the effects of varied versus same executions of advertisements on brand
name memory when the number of exposure to ads is held constant. They found out
that varied ad executions enhance memory for brand name over repeated same ad
executions. In varied ad executions learning was superior to learning when
executions remained the same.
Padamsee (1995) in an article titled "Rising above the clutter" has written that
because of the incredible noise level in today's media, print and electronic,
advertising needs more that just to be persuasive. It needs to be noticeable. A great
ad is no longer one that tells you a lot about a product rationally and emotionally. A
great ad has to first and foremost attract your attention. Moreover advertisers have
realised that along with the information customer also wants brand personality. So
advertising should project not only the attribute and unique selling points but an
image that the customer can react to.
A new product's campaign also has deal with the six phases of marketing.
The advertising campaign is considered successful if it defines its advertising
objectives, planned better, creative, and more beneficial to consumers.
An
increasing important role in advertising new and old products is using a creative
strategy. Advertisers should evaluate appeal messages used.
Products should
mean something to the consumers, advertisers help give products their meaning by
pointing out the desirable or meaningful benefits to them.
It is necessary for
products to be distinctive by telling how the product is better than other brands,
competing with the same product.
believable appeals. The impact of a message depends on what is said and how it is
said (Kotler & Armstrong, 1989).
thousand new products were introduces to drug stores and grocery stores in 1992.
In order to find out about a product's quality it had to be used, the consumer demand
initially would rely on the expectations of the consumer, basically beliefs about the
quality of a product were purchased. It was found that consumers compared new
information with past information, and based on this they formed future expectations.
Expectations about a new product's quality are built and changed over time.
"satisfaction
is
function
of
the
difference
between
experiences
and
Research Methodology
For this, sample of 200 people is taken. A questionnaire has been set which consists
of a number of questions printed in a definite order. The collection of data is mainly
done through schedules.
The
questionnaire
dealt
with
aspects
like
recall-ability
of
Sampling plan
Universe
The universe included all the consumers of FMCG who are exposed to TV
advertisement
Population
The population included all the consumers of FMCG who are exposed to
advertisement in TV purposively selected from two cities (Bathinda & Patiala)
of PUNJAB.
Sample unit
Single individual consumer of FMCG who is exposed to advertisement in TV
Sample size was taken to be 200.
Keeping in view the time and resources constant, the total sample size was
taken to be 200. In such a way that equal number of male and female
respondents is selected. Details are given below. In the age group 15-25
years almost all the respondents were two cities of Punjab. The respondents
in the age group above 25 years consisted of house holds located in two
cities of Punjab.
Sampling technique
The selections of the respondents were done on the basis of convenient
sampling. It was decided to include in the sample the consumers
representing different sexes. Respondents have been categorized sex wise
viz, male and female.
This classification of consumer resulted in the following four strata:
(a)
(b)
(c)
(d)
1.
2.
The results are based on data collected in two cities (Bathinda &
Patiala) of Punjab.
3.
4.
5.
The study was mainly an individual study, so all the limitations of such
study like limitation of time, finance, coverage were faced.
Total
(N=200)
1.
2.
3.
4.
5.
97%
96%
91%
67%
75%
6.
7.
8.
9.
91%
91%
63%
95%
Sex
Male
(N=100)
Female
(N=100)
98(98%)
96(96%)
194(97%
96(96%)
)
192(96%
88(88%)
)
182(91%
96(96%)
94(94%)
Total
(N=200)
70(70%)
64(64%)
)
134(67%
78(78%)
72(72%)
)
150(75%
)
86(86%)
96(96%)
182(91%
96(96%)
86(86%)
)
182(91%
62(62%)
)
126(63%
64(64%)
9. other
94(94%)
96(96%)
190(95%
)
The males are dominating with 98% recall of advertisements & those
advertisements of HUL PRODUCTS . And in case of females highest
recall is of JOHNSON & JOHNSON PRODUCTS & TATA GLOBAL
BEVERAGES PRODUCTS & HUL & ITC also which is 96%.
Total
(N=200)
FMCG
1. Small actions, Big difference.
2. Enduring value.
3. Good food, Good life/makes the very
99%
95%
98%
best.
4. Brighter living.
96%
97%
6. No more tears
91%
97%
80%
In the above table the total aided recall is shown. And in the table it is clear
that in case of FMCG Small actions, Big difference. is having the highest
recall which is 99%. This data is also analyzed in the parameters of sex. In
that case, data is analyzed in the two sex group i.e. males & females. This
analysis is given below.
Aided Recall of FMCG and FMCG Advertisement With Respect To
Slogans: Sex wise
Advertisement/FMCG
Sex
Male
(N=100)
Female
(N=100)
100(100%
98(98%)
198(99%
)
98(98%)
92(92%)
)
190(95%
100(100
96(96%)
)
196(98%
Total
(N=200)
best.
4.Brighter living.
%)
96(96%)
96(96%)
)
192(96%
98(98%)
96(96%)
)
194(97%
92(92%)
90(90%)
)
182(91%
96(96%)
98(98%)
)
194(97%
74(74%)
)
160(80%
86(86%)
Total
(N=200)
1.Priyanka chopra
2.Shahrukh khan
3.Soha ali khan
4.Yuvraj singh
97%
100%
95%
91%
98%
5.Krisma kapoor
6.Shilpa shetty
7.M.S.Dhoni
8.Deepika padukone
99%
95%
95%
Sex
Male
(N=100)
Female
(N=100)
Total
(N=200)
1.Priyanka chopra
2.Shahrukh khan
96(96%)
100(100%
98(98%)
100(100
194(97%)
200(100%
%)
94(94%)
88(88%)
100(100%
96(96%)
94(94%)
96(96%)
190(95%)
182(91%)
196(98%)
)
100(100%
98(98%)
198(99%)
)
98(98%)
94(94%)
92(92%)
96(96%)
190(95%)
190(95%)
Soha ali
TOTAL VALUE
1. Price
200
2. Easy availability
180
3. Brand name
165
4. Packaging
150
5. Advertisement
135
6.Taste
110
In the above table it is shown that the most influencing factor in case of
choice of brand is Price, followed by Easy availability & Brand name. This
data is also analyzed in the parameter of sex . In that case the data is
analyzed in the two sex group i.e. males & females. This analysis is given
below.
Factor Influencing Choice of Brand: Sex Wise
FACTORS
SEX
Male
(N=100)
Female
(N=100)
1.Price
100
100
200
2. Easy availability
100
80
180
3. Brand name
90
75
165
4. Packaging
70
80
150
5. Advertisement
6. Taste
85
50
50
60
135
110
Value
In the above table it is clear that according to male the most affecting factor
is Price and the Easy availability. And in case of females the Price and the
Packaging are affecting factors.
FACTORS
VALUE
1.Yes
70
2.No
130
In the above table it is shown that the 70 people buy products by calling
brand names and 130 people does not buy products by calling brand name.
This data is also analyzed in the parameter of sex. In that case the data is
analyzed in the two sex group i.e. males & females. This analysis is given
below.
SEX
Male
(N=100)
Female
(N=100)
1.Yes
40
30
70
2. No
80
50
130
TOTAL
Value
200
In the above table it is clear that according to 40 male they buy FMCGs by
using brand name and 30 female respectively. And 80 male dsnt buy
FMCGs by using brand names and 50 female respectively.
Total
(N=200)
1.
2.
3.
4.
5.
6.
7.
8.
9.
HUL
ITC Limited
Nestle india
Godrej Group
Procter & Gamble
Johnson & Johnson
Tata Global Beverages
Himalaya Herbal Healthcare
Other
99%
95%
98%
96%
97%
91%
97%
80%
95%
1. HUL
2. ITC Limited
3. Nestle india
4. Godrej Group
5. Procter & Gamble
Sex
Male
(N=100)
Female
(N=100)
100(100%
98(98%)
198(99%
)
98(98%)
92(92%)
)
190(95%
100(100%
96(96%)
)
196(98%
)
96(96%)
96(96%)
)
192(96%
96(96%)
)
194(97%
98(98%)
Total
(N=200)
92(92%)
90(90%)
182(91%
96(96%)
98(98%)
)
194(97%
86(86%)
74(74%)
)
160(80%
96(96%)
)
190(95%
9. Other
94(94%)
39%
16%
45%
Male
(N=100)
Female
(N=100)
33(33%)
18(18%)
35(35%)
45(45%)
14(14%)
55(55%)
Total
(N=200)
78(39%)
32(16%)
90(45%)
Total
(N=200)
50%
also.
2. A good advertisement can change my
11%
19%
20%
same taste.
Note: The total number of respondent is 200 so the number itself is %.
In the above table it is clear that maximum of the people i.e. 50% are saying
that liking advertisement does not mean we like that brand also. And very
few i.e. 11% are saying that a good advertisement can change their
preference for the FMCG. 19% of them said that they purchase those
FMCGs whose T.V. commercials are frequent. And 20% said that all FMCGs
have same taste.
Influence of the Advertisement on the Consumer Preference and Purchase
Behaviour: Sex Wise
STATEMENT
SEX
Male
(N=100)
Female
(N=100)
56(56%)
44(44%)
Total
(N=200)
100(50%
)
also.
2. A good advertisement can change
8(8%)
14(14%)
22(11%)
16(16%)
22(22%)
38(19%)
20(20%)
20(20%)
40(20%)
taste.
Note: The total number of respondent is 200 so the number itself is %.
The above table shows that 56% of the male and 44% female are saying
that liking advertisement does not mean that we like that brand and very few
i.e. 8% males and 14% females are saying that a good advertisement can
change their preference for FMCGs.16% of male & 22% of female are there,
who are saying that we purchase that FMCG whose advertisements are
more frequent.
Total
(N=200)
1. HUL
2. ITC Limited
3. P&G
4.Nestle india
5.Godrej Group
6.Johnson & Johnson
7.Tata Global Beverages
8.Himalaya Herbal Healthcare
9.Other
50%
25%
25%
22%
22%
20%
18%
8%
10%
SEX
Male
(N=100)
Female
(N=100)
Total
(N=200)
1. HUL
2. ITC Limited
3. P&G
4.Nestle india
5.Godrej Group
6.Johnson & Johnson
7.Tata Global Beverages
8.Himalaya Herbal Healthcare
9.Other
25(25%)
15(15%)
25(25%)
10(10%)
50(25%)
25(12.5%
10(10%)
15(15%)
)
25(12.5%
12(12%)
10(10%)
10(10%)
10(10%)
3(3%)
5(5%)
)
22(11%)
22(11%)
20(10%)
18(9%)
8(4%)
10(5%)
10(10%)
12(12%)
10(10%)
8(8%)
5(5%)
5(5%)
Total
(N=200)
1. Taste
2. Price
3. Advertisement
4. Easy Availability
5. Quality
6.Design
35%
55%
--60%
-----
In the above table it is clear that those persons who like FMCG, 60% out of
those like it because of its Easy availability & 55% just because of Price &
35% because of Taste .
1. Taste
2. Price
3. Advertisement
4. Easy Availability
5. Quality
6.Design
SEX
Male
(N=100)
Female
(N=100)
30(30%)
60(60%)
--70(70%)
40(40%)
50(50%)
--50(50%)
70(35%)
110(55%)
--120(60%
-----
)
-----
-----
Total
(N=200)
In the above table males like 70% of them because of its Easy availability
and 60% because of Price and out of female 50% like it just because of
price & Easy availability.
Total
(N=200)
28%
72%
72% will buy other FMCG brand, So it shows that the respondents are not
loyal towards their favourite brand of FMCG.
SEX
Male
(N=100)
Female
(N=100)
30(30%)
70(70%)
26(26%)
74(74%)
Total
(N=200)
56(28%)
144(72%
)
The most influencing factor price is followed by easy availability & brand
name. And the least value is given to taste as the factor that influences the
choice of FMCG brand.
It has been concluded that HUL is among the most favourite brand of
consumers followed by other FMCG brands. So HUL is highly preferred
brand of FMCGs for the consumers.
The consumers who like HUL maximum of them are saying that they just like
HUL because of Easy availability & remaining are saying because of price
and taste. And no one is saying advertisement is the reason for preference of
FMCG brands.
The survey shows that consumers are not showing loyalty for their favourite
FMCG brands. As maximum of the respondents are saying that they will buy
other FMCG brand because of non availability of their favourite FMCG brand.
And very few are saying that they will go to another shop to have their
favourite FMCG brand. So it shows that people are not loyal towards their
favourite brand.
from the whole study we can conclude that advertisement is very effective as
far as recall of the advertisement is concern and it is very effective way to create the
awareness of the product. And it can be very useful in selling during the initial stages
when product is new. But on the later stages there are many other factors that come
in to play for selection of FMCG brands. These factors are like price, easy
availability, taste etc. so the company must stress upon these factors because in the
initial stages when product is new at that time with the help of advertisement.
Company can convince the people to purchase their product once but if the products
are not good with respect to quality and also due to uneasy availability of their
product then company will be thrown out of the market and it will be hard for the
company to compete in the market in todays scenario.
SUMMARY:
This survey basically deals with purpose to know advertisement effectiveness
regarding FMCGs. For this consumer survey was conducted. The population
included in the survey was selected from Patiala & bathinda cities.It is further
stratified on the basis of sex. And the two categories of sexes, male and female
were taken. The sample size was restricted 200. The technique was followed in
such a way the equal number of male and female respondent were selected . The
information is collected from the respondent by the means questionnaire, which was
further analyzed to elucidate the objective of this study. The summary is given
below:For finding the effectiveness of advertisement the first parameter taken is the recall
of the FMCG advertisement which was analyzed on the basis of punch lines &
models . And also two type of test were there for recall i.e. aided & unaided recall.
The next recall was with respect to the models and in this Shahrukh khan,
Shilpa shetty, krisma kapoor and Priyanka chopra were recalled by
maximum number of people in the FMCG advertisement. And recalling with
respect to sex Shahrukh khan is were recalled by maximum number by both
male and female.
This objective was concern to know that what kind of urge people feel when they
watch the advertisement. And 35% of the males and 55% percent of the females are
saying that after watching advertisement they urge to have their favourite FMCG and
not that FMCG whose advertisement they are watching.
Respondents were asked to rank the given factors that influence their choice of
FMCG brand. In case of male & female the maximum value is given to price & Easy
availability. And the least value is given to advertisement & taste as the factor that
influences the choice of FMCG brand. The consumers who like HUL brand 97% of
them are saying that they just like that brand because of easy availability & price.
The survey shows that consumers are not showing loyalty for their favourite
FMCG brands. As 72% of the respondents are saying that they will buy other FMCG
because of non availability of their favourite FMCG. And very few (28%) are saying
that they will go to another shop to have their favourite FMCG brand. So it shows
that people are not loyal towards their favourite brand.
Bibliography
A.L., Biel and Bridgwater; C.A. 1990. Attributes of a Likeable T.V. Commercial,
Journal of Advertising Research 30(3):32-38.
Burnett, L. 1995.It does too- A Company Survey. A & M, January 15: 57-60.
Raj, S.P. 1982.The Effect of Advertising on High and Low Loyalty Consumer
Segments, Journal of Consumer Research.9 (1):77-89.
www.wikipedia.com
QUESTIONNAIRE
Personal Information
Name : _________________________ Age : __________ Sex : ___________
Address : _______________________________________________________
1
List the advertisement for the following brands of the FMCG?
(a) Hindustan Unilever Ltd. ____________________________________
(b) ITC Limited______________________________________________________
(c) Nestle
India______________________________________________________
(d) Godrej Group
____________________________________________________
(e) Procter & Gamble ________________________________________________
(f) Johnson & Johnson ______________________________________________
(g) Tata Global Beverages ___________________________________________
(h) Himalaya Herbal Healthcare ______________________________________
(i) Other
__________________________________________________________
2
1.
2.
3.
4.
5.
6.
7.
8.
9.
4. Yuvraj Singh
5. Krisma Kapoor
6. Shilpa Shetty
7. M.S. Dhoni
8. Deepika Padukone
(4)
1.
2.
3.
4.
_____
_____
_____
_____
_____
_____
_____
_____
_____
_____
_____
_____
_____
_____
_____
____
____
____
____
____
____
____
____
____
____
(b) NO
_____
_____
_____
_____
_____
_____
(f)
(g)
(h)
(i)
(7)
1.
2.
3.
(8)
Tick one statement given below with which you are agree?
1.
4.
(9)
2.
3.
HUL
ITC Limited
P&G
Nestle India
Godrej Group
Johnson & Johnson
_____
_____
_____
_____
(10)
1.
2.
3.
4.
5.
6.
Other