A Study On Factors That Are Responsible For Brand Preferance in FMCG Products Among College Students

A Project Report on the Topic of
“A STUDY ON FACTORS THAT ARE RESPONSIBLE FOR BRAND

PREFERANCE IN FMCG PRODUCTS AMONG COLLEGE STUDENTS”
Submitted In Final Fulfillment
Of the
Requirement of Master Degree in Business Administration
(2008 – 2010)
SUBMITTED TO SUBMITTED BY
Mrs.HARPOMINDER SUMIT MIDHA
MBA 4th SEMESTER
SAS INSTITUTE OF IT & RESEARCH MOHALI Page 1

CERTIFICATE
This to certify that Mr. Sumit Midha of SASIIT&R has successfully completed the project report
titled A STUDY ON FACTORS THAT ARE RESPONSIBLE FOR BRAND PREFERANCE
IN FMCG PRODUCTS AMONG COLLEGE STUDENTS. In the partial fulfillment of
requirement for the completion of MBA course as prescribed by the SASIIT&R.
This project report is the record of authentic work carried out by him during the last semester of
MBA .He has worked under my guidance.
Signature
Mrs.Harpominder
(Project guide)
Date……………

ACKNOWLEDGEMENT
“There is joy in work. There is no happiness except in the realization that we have
accomplished something.”-Henry ford
The making of any project requires contribution from many people, right from inception till its
completion. In my case also, there has been a few people who have made this happen. It was not
only learning but also an enriching experience.
I deeply indebted to mrs.harpominder my project guide for giving me such an opportunity with
this project and her constant guidance, professional help and support in every possible way
during the course of the project.
Special thanks and sincere gratitude to MR. SatinderPal sir. I shall remain indebted to him for
his wholehearted cooperation and mature guidance without which this report would not have
taken shape. His unconditional support and constant encouragement have made the successful
completion of this project possible.
Last but not least, I also take pleasure in thanking our teaching faculty and my
Classmates without their active cooperation the project would have not been possible.
Finally, I am grateful to my family for their moral support and understanding.
“Teachers open the door, but you must enter by yourself”

DECLARATION
I Sumit Midha, student of MBA at SAHIBZADA AJIT SINGH INSTITUTE OF

INFORMATION TECHNOLOGY & RESEARCH, MOHALI, Punjab hereby declare that
the project which is presented in this report entitled “A STUDY ON FACTORS THAT ARE
RESPONSIBLE FOR BRAND PREFERANCE IN FMCG PRODUCTS AMONG COLLEGE
STUDENTS” submitted in the partial fulfillment of the requirements for the award of the degree
of MBA, is an authentic record. The material embodied in this project work is correct to the best
of my knowledge.
SUMIT MIDHA

CONTENTS
1. INTRODUCTION………………………………………………………………6
2. INDUSTRY OVERVIEW………………………………………………………10
3. BRAND PREFERENCE………………………………………………………22
4. RESEARCH METHODOLOGY………………………………………………27
5. DATA ANALYSIS………………………………………………………………32
6. FINDINGS……………………………………………………………………..57
7. CONCLUSION………………………………………………………………..65
8. ANNEXURE………………………………………………………………….67

9. BIBLIOGRAPHY…………………………………………………………….74
INTRODUCTION

INTRODUCTION
The Fast Moving Consumer Goods (FMCG) industry in India is one of the largest sectors in the
country and over the years has been growing at a very steady pace. The sector consists of
consumer non-durable products which broadly consists, personal care, household care and food
& beverages. The Indian FMCG industry is largely classified as organized and unorganized. This
sector is also buoyed by intense competition. Besides competition, this industry is also marked
by a robust distribution network coupled with increasing influx of MNCs across the entire value
chain. This sector continues to remain highly fragmented.
Industry Classification
The FMCG industry is volume driven and is characterized by low margins. The products are
branded and backed by marketing, heavy advertising, slick packaging and strong distribution
networks. The FMCG segment can be classified under the premium segment and popular
segment. The premium segment caters mostly to the higher/upper middle class which is not as
price sensitive apart from being brand conscious. The price sensitive popular or mass segment
consists of consumers belonging mainly to the semi-urban or rural areas who are not particularly
brand conscious. Products sold in the popular segment have considerably lower prices than their
premium counterparts.

FMCG Industry in India
The Indian FMCG sector is the fourth largest sector in the economy with a total market size in
excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a well
established distribution network, intense competition between the organized and unorganized
segments and low operational cost. Availability of key raw materials, cheaper labor costs and
presence across the entire value chain gives India a competitive advantage. The FMCG market
is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as
well as per capita consumption in most product categories like jams, toothpaste, skin care, hair
wash etc in India is low indicating the untapped market potential. Burgeoning Indian population,
particularly the middle class and the rural segments, presents an opportunity to makers of
branded products to convert consumers to branded products. Growth is also likely to come from
consumer 'upgrading' in the matured product categories. With 200 million people expected to
shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment
in the food-processing industry. Around 70 per cent of the total households in India (188
million) reside in the rural areas. The total number of rural households is expected to rise from
135 million in 2001-02 to 153 million in 2009-10. This presents the largest potential market in
the world. The annual size of the rural FMCG market was estimated at around US$ 10.5 billion
in 2001-02. With growing incomes at both the rural and the urban level, the market potential is
expected to expand further. An average Indian spends around 40 per cent of his income on
grocery and 8 per cent on personal care products. The large share of fast moving consumer
goods (FMCG) in total individual spending along with the large population base is another
factor that makes India one of the largest FMCG markets. Rapid urbanization, increased literacy
and rising per capita income, have all caused rapid growth and change in demand patterns,
leading to an explosion of new opportunities. Around 45 per cent of the population in India is
below 20 years of age and the young population is set to rise further. Aspiration levels in this
age group have been fuelled by greater media exposure, unleashing a latent demand with more
money and a new mindset.

A distinct feature of the FMCG industry is the presence of most global players through their
subsidiaries (HLL, P&G, Nestle, Heinz, Colgate-Palmolive), which ensures new product
launches in the Indian market from the parent's portfolio. Availability of key raw materials and
cheap labor costs give India a competitive edge. Rural and semi-urban markets will drive the
FMCG business in the country to a compounded annual growth of 50% for the next six years. A
good number of malls, nearly 220 in the country, would come up in the next four to five years in
semi-urban areas that would lead to an increase in the demand for the products.
What are Fast Moving Consumer Goods (FMCG)?
Products which have a quick turnover, and relatively low cost are known as Fast Moving
Consumer Goods (FMCG). FMCG products are those that get replaced within a year. Examples
of FMCG generally include a wide range of frequently purchased consumer products such as
toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as
other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG
may also include pharmaceuticals, consumer electronics, packaged food products, soft drinks,
tissue paper, and chocolate bars.
A subset of FMCGs is Fast Moving Consumer Electronics which include innovative electronic
products such as mobile phones, MP3 players, digital cameras, GPS Systems and Laptops. These
are replaced more frequently than other electronic products.
White goods in FMCG refer to household electronic items such as Refrigerators, T.Vs, Music
Systems, etc.
In 2005, the Rs. 48,000-crore FMCG segment was one of the fast growing industries in India.
According to one study, the industry grew 5.3% in value between 2004 and 2005.
The Indian FMCG sector is the fourth largest in the economy and has a market size of US$13.1
billion. Well-established distribution networks, as well as intense competition between the
organized and unorganized segments are the characteristics of this sector. FMCG in India has a
strong and competitive MNC presence across the entire value chain.
It has been predicted that the FMCG market will reach to US$ 33.4 billion in 2015 from US $
billion 11.6 in 2003. The middle class and the rural segments of the Indian population are the
most promising market for FMCG, and give brand makers the opportunity to convert them to
branded products. Most of the product categories have potential for growth is huge.

The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid
urbanization, increased literacy levels, and rising per capita income.
The big firms are growing bigger and small-time companies are catching up as well.
INDUSTRY
OVERVIEW

List of FMCG Companies in India
ALPHABATES COMPANIES
B Britannia
C Colgate Palmolive(India) ltd.
D Dabur India Limited
E Emami Limited
G GlaxoSmithKline Consumer Healthcare Limited
Godfrey Phillips India Limited
Godrej Consumer Products Limited
H Hindustan Unilever Limited
I ITC Limited
M Marico Limited
N Nestle India Limited
Nirma Limited
P Procter & Gamble Hygiene and Health Care Limited
R Radico Khaitan Limited
T Tata Tea Limited
U United Breweries LimitedUnited Spirits Limited
W Weikfield Products Company India Private Limited

THE TOP 20 COMPANIES IN FMCG SECTOR
S. NO. Companies
1. Hindustan Unilever Ltd.
2. ITC (Indian Tobacco Company)
3. Nestlé India
4. GCMMF (AMUL)
5. Dabur India
6. Asian Paints (India)
7. Cadbury India
8. Britannia Industries
9. Procter & Gamble Hygiene and
Health Care
10. Marico Industries
11. Colgate-Palmolive (India)ltd.
12. Gillette India ltd.
13. Godfrey Phillips
14. Henkel spic
15. Johnson & Johnson
16. Modi Revlon
17. Nestle
18. Nirma ltd
19. Amul India
20. Godrej consumer products ltd.
The companies mentioned in Exhibit I, are the leaders in their respective sectors. The personal

care category has the largest number of brands, i.e., 21, inclusive of Lux, Lifebuoy, Fair and
Lovely, Vicks, and Ponds. There are 11 HLL brands in the 21, aggregating Rs. 3,799 crore or
54% of the personal care category. Cigarettes account for 17% of the top 100 FMCG sales, and
just below the personal care category. ITC alone accounts for 60% volume market share and
70% by value of all filter cigarettes in India.
The foods category in FMCG is gaining popularity with a swing of launches by HLL, ITC,
Godrej, and others. This category has 18 major brands, aggregating Rs. 4,637 crore. Nestle and
Amul slug it out in the powders segment. The food category has also seen innovations like
softies in ice creams, chapattis by HLL, ready to eat rice by HLL and pizzas by both GCMMF
and Godrej Pillsbury. This category seems to have faster development than the stagnating
personal care category. Amul, India's largest foods company, has a good presence in the food
category with its ice-creams, curd, milk, butter, cheese, and so on. Britannia also ranks in the top
100 FMCG brands, dominates the biscuits category and has launched a series of products at
various prices.
In the household care category (like mosquito repellents), Godrej and Reckitt are two players.
Goodknight from Godrej is worth above Rs 217 crore, followed by Reckitt's Mortein at Rs 149
crore. In the shampoo category, HLL's Clinic and Sunsilk make it to the top 100, although
P&G's Head and Shoulders and Pantene are also trying hard to be positioned on top. Clinic is
nearly double the size of Sunsilk.
Dabur is among the top five FMCG companies in India and is a herbal specialist. With a
turnover of Rs. 19 billion (approx. US$ 420 million) in 2005-2006, Dabur has brands like Dabur
Amla, Dabur Chyawanprash, Vatika, Hajmola and Real. Asian Paints is enjoying a formidable
presence in the Indian sub-continent, Southeast Asia, Far East, Middle East, South Pacific,
Caribbean, Africa and Europe. Asian Paints is India's largest paint company, with a turnover of
Rs.22.6 billion (around USD 513 million). Forbes Global magazine, USA, ranked Asian Paints
among the 200 Best Small Companies in the World
Cadbury India is the market leader in the chocolate confectionery market with a 70% market
share and is ranked number two in the total food drinks market. Its popular brands include
Cadbury's Dairy Milk, 5 Star, Eclairs, and Gems. The Rs.15.6 billion (USD 380 Million) Marico
is a leading Indian group in consumer products and services in the Global Beauty and Wellness
space.

Market Structure
The FMCG structure in India:
FMCG(HLL)
Personal Care Home Care Food & Beverages
Kirana Stores Door to Door Internet Super Store/Malls
Consumer

Major Players & their Sales Performance
The Major Players in the market are: HLL,

ITC, Nestle, Colgate-Palmolive, P&G, Dabur,
Godrej, Nirma and Marico.
HLL is the biggest player in the industry with

presence in all the segments of the FMCG
sector. The only company which matches
HLL’s presence in the entire industry is
P&G.
Revenue Sources
FMCG Industry’s revenue per segment
120000 45
40
100000
35
% Of Total Sales
Sales In Million
80000 30
25
60000
20
40000 15
10
20000
5
0 0
Food & Beverages Personal Care Home Care
Segment

Food & Beverages segment leads the revenue pack followed by Personal Care and Home care.
Food & Beverages segment is growing at 9% and dependent on the season. Personal care
segment leads the pack with the growth rate of 10% where Home care segment is growing at
9%.
FMCG SECTOR
Size of The Sector:

 In terms of Money.
The FMCG sector is the fourth largest sector in the Indian economy with a total market size
of around Rs 45,000 crore.
According CII figures for 2005, the size of the fabric wash market is estimated to be Rs
4,500 crore; of household cleaners to be Rs 1,100 crore; of personal wash products to be Rs
4,000 crore; of hair care and oral care products to be Rs 2,600 crore each; of health
beverages to be Rs 1,100 crore; of bread and biscuits to be Rs 8,000 crore; of chocolates to
be Rs 350 crore and of ice cream to be Rs 900 crore.
 Contribution to GDP.
The sector accounts for barely 2% of India's GD
Growth Trends:
According to a Economic Times report, the pace of growth recorded by the FMCG industry in
the fiscal year 2004-05 is expected to be the highest at 5%-6% in the last five years, following a
sharp rebound in rural demand.
A number of large and medium FMCG companies like HLL, Colgate, Dabur, Marico, and
Godrej Consumer Products have or are in the process of setting up manufacturing units in tax
havens like Uttaranchal, Himachal Pradesh, Jammu and Assam.
Most companies have shifted from outsourcing to manufacturing in a desperate bid to protect
profit margins in the absence of price increases.
According to figures of the National Council for Applied Economic Research, the ratio of the
consuming class to total households will touch 46% by FY-07. With per capita consumption low
in most categories and expectations of the consuming class growing in significant numbers, the
FMCG sector in India has immense growth potential in the long term.
The government's idea of making India an agri-processing hub will also boost the sector's
growth. Private sector initiatives like ITC's e-choupal and HLL's Shakti will shape the dynamics
of what farmers produce going forward, with improved efficiency.

Swot Analysis
Strengths:
• Well-established distribution network extending to rural areas.

• Strong brands in the FMCG sector.
• Low cost operations
Weaknesses:
• Low export levels.

• Small scale sector reservations limit ability to invest in technology and achieve
economies of scale.
• Several "me-too’’ products.
Opportunities:
• Large domestic market.

• Export potential
• Increasing income levels will result in faster revenue growth.
Threats :
• Imports
• Tax and regulatory structure
• Slowdown in rural demand

Factors affecting the growth:
Over the years, demand for consumer durables has increased with rising income levels, double-
income families, changing lifestyles, availability of credit, increasing consumer awareness and
introduction of new models. Products like air conditioners are no longer perceived as luxury
products.
The biggest attraction for MNCs is the growing Indian middle class. This market is characterised
with low penetration levels. MNCs hold an edge over their Indian counterparts in terms of
superior technology combined with a steady flow of capital, while domestic companies compete
on the basis of their well-acknowledged brands, an extensive distribution network and an insight
in local market conditions.
With companies opting for information technology a reduction in inventory levels and an
improvement in the working capital cycle is likely. This will benefit companies by controlling
costs and improving margins
Major Government Policies/Changes in the past three years:
The removal of surcharge on tea and duty on vanaspati and refined edible oils will have a
marginally positive impact on companies like Tata Tea, HLL and Marico.
The focus on replantation and rejuvenation of tea plantations will benefit the sector over the
long term, but there is nothing material in it for companies immediately.
Implementation of VAT is a positive move over the long term. This is likely to pave the way
for a singular tax going forward, which will help companies cut costs ands become more
competitive in the long run.
Reduction in duty on refrigerated vans will give a boost to the processed food industry. A
positive for players like Amul, Nestle, HLL and Britannia.
Area specific excise exemptions for North East, J&K, Himachal Pradesh will continue to
encourage FMCG companies to relocate to these areas.
The corporate tax rate change is unlikely to benefit the FMCG companies much, as most pay
an effective tax rate of less than 30% anyway.

The push to agriculture and rural India is likely to aid rural India's development in the long
run. It has the potential to induce increased usage of FMCG products going forward.
Individual tax benefits too are a positive for the sector.
Some critical news:
Outlook Of Investors(list major investors,FII etc.)

In the context of the positives and the negatives, investing in FMCG stocks is a tricky prospect.
Given this, one has to be active with FMCG stocks and should book profits as soon as the
targetted returns are reached. Unlike earlier times, nowadays, one cannot afford to buy an FMCG
stock and forget about it for a long time.
It is unlikely that the government's initiatives will boost the sector overnight. The ongoing price
wars mean that company earnings will continue to be volatile. Hence, in the short term, one
should look at individual companies' prospects rather than the overall sector's prospects. This
means that it is better to leave mutual funds that concentrate on FMCG companies and instead
buy shares depending upon the company.
It is not necessary that an MNC will be better than an Indian company. One should look at a
company's profile and analyse its prospects before investing in its shares.
It is not that you will lose out by buying FMCG stocks. But, in buying an FMCG stock, it will be
ideal to cash in during short bursts of activity.
Major Merger and Acquisitions in the past two years:

Vijay Mallya's United Breweries Group (through Group entities Mc Dowell & Co, Phipson
Distillery, United Spirits and United Breweries Holdings) acquired a controlling stake in the
Jumbo Group's Shaw Wallace & Company for a total deal value of Rs 16.2 billion ($371.6
million). The deal is made up of an acquisition of a 50 per cent stake from the promoters
(including a non-compete premium) a tender offer for an additional 25 per cent from other
shareholders, and the acquisition of two distribution subsidiaries.
The other Jumbo Group company to be sold was Shaw Wallace Breweries. SAB Miller
increased its stake by 50 percentage points to 99 per cent in the company through its Indian
subsidiary, Mysore Breweries. The stake was held by Shaw Wallace & Company and, hence,
had SAB Miller not undertaken this acquisition, Shaw Wallace Breweries would effectively have
been an joint venture between two rivals — UB and SAB Miller.
McLeod Russell India (part of the B. M. Khaitan Group) acquired a 90 per cent stake in

Williamson Tea Assam for Rs 2.1 billion ($48.2 million). Of this, a 70 per cent stake came
through the acquisition of holding company Borelli Tea Holdings from Williamson Tea of UK,
while the rest is to be acquired by a tender offer to other shareholders.
The P&G-Gillette merger - With the acquisition of Gillette's operations, P&G becomes the
second largest consumer goods company in the world
Expected Future Trends:

Huge investments in promoting brands, setting up distribution networks and intense competition
are what FMCG companies face.
Creating strong brands is important for FMCG companies and they will have to devote
considerable money and effort in developing brands.
Given the fragmented nature of the Indian retailing industry and the problems of infrastructure,
FMCG companies also need to develop extensive distribution networks to achieve a high level
of penetration in both the urban and rural markets. This will require a lot of resources.
The unorganised sector has a presence in most product categories of the FMCG sector. Small
companies from this sector have used their locational advantages and regional presence to reach
out to remote areas where large consumer products have only limited presence. Their low cost
structure also gives them an advantage. And this will only lead to price wars, which, though
good for consumers, will affect the bottomlines of companies.
According to Adi Godrej, the problem of counterfeiting and globalisation are two of the biggest
challenges facing the industry today. Godrej is all for the Indian FMCG sector internationalising
brands in a serious manner, rather than treating it like shooting an arrow in the dark.
Key Players:
Company Name
Hindustan Lever Ltd.
I T C Ltd.
Nirma Ltd.
Nestle India Ltd.
Britannia Industries Ltd.
Colgate-Palmolive (India) Ltd.
Godfrey Phillips India Ltd.
Dabur India Ltd.
Smithkline Beecham Consumer Healthcare Ltd.

Godrej Soaps Ltd.
Marico Industries Ltd.
Cadbury India Ltd.
Procter & Gamble Hygiene & Health Care Ltd.
Reckitt & Colman Of India Ltd.
I S P L Industries Ltd.
New players Planned to venture:
Mangalore-based CAMPCO has announced plans to enter the FMCG sector by marketing, and
promoting Effermint toothpaste. For CAMPCO this marks its maiden entry into the FMCG
sector, while for Thrissur-based Effermint India, this is the second time that it is entering in to a
marketing tie-up with a large player. It had on an earlier occasion partnered with TOMCO, the
FMCG arm in the Tata
thanx
Godrej Consumer Products Ltd (GCPL) has launched a new brand of soap, Nimin, on the
germicide platform. Pegged on a par with Lifebuoy's variant in the sub-popular category, Nimin
is priced at Rs 8 for 75 gm and Rs 13 for 125 gm.
GCPL has also decided to enter the hair oil market with a brand under its company name. The
company is already test marketing a thanda tel under the Godrej brand in UP. Now, players such
as Marico have entered the category with Shanti Thanda Tel.
FMCG during Recession

At a time when the economy and industry sectors such as automobiles, aviation and financial
services are reeling from the global slowdown, the consumer goods sector in India has managed
to buck the trend with most companies posting double-digit growth in net profits in the first half
of fiscal 2009 backed by healthy sales according to the recent reports, India's fast moving
consumer goods industry has so far been resilient to the slowdown in the economy and a dip in
consumer sentiment. If we go by the numbers for the past few months, the growth only seems to
have got better when compared to the earlier months.
As very categorically said by the Amway India Enterprises managing director and chief
executive, Mr. William Pinckney.

" I am not saying that our company (sector) is recession-proof but it is recession-resilient.”
This statement on the whole stands strong for most the leading players in the FMCG sector.
Brand Preference

Brand Preference
People begin to develop preferences at a very early age. Within any product category, most
consumers have a group of brands that comprise their preference set. These are the four or five
upmarket brands the consumer will consider when making a purchase. When building
preference,the goal is to first get on the consumer’s preference sets, and then to move up the
set’s hierarchy to become the brand consumers prefer the most – their upmarket brand. Gaining
and maintaining consumer preference is a battle that is never really won.
Definitions of brand preference are as follows:-
• Selective demand for a company's brand rather than a product; the degree to which
consumers prefer one brand over another
• The percentage of people who claim that a particular brand is their first choice.
In every product category, consumers have more choices, more information and higher
expectations than ever before. To move consumers from trial to preference, brands need to
deliver on their value proposition, as well as dislodge someone else from the consumer's existing
preference set.
Preference is a scale, and brands move up, down and even off that scale with and without a
vigilant brand management strategy. Pricing, promotional deals and product availability all have
tremendous impact on the position of our brand in the consumer’s preference set. If all things are
equal, the best defence is to make us more relevant to consumers than the competition. The
brands potential can only be fulfilled by continually reinforcing its perceived quality, upmarket
identity and relevance to the consumer. The same branding activities that drive awareness also
drive preference. And, while awareness alone will not sustain preference, it will improve the
brand’s potential for building and maintaining preference.
With a great story and a large enough investment, awareness can be attained rather quickly. It
takes time, however, and constant revaluation to build brand preference. Aristotle professed,
“We are what we repeatedly do. Excellence then is not an act, but a habit.” Attaining and
sustaining preference is an important step on the road to gaining brand loyalty. The ability to

generate more revenue, gain greater market share and beat off the competition is the reward
given by consumer toward particular brand.
Brand preference is the Selective demand for a company's brand rather than a product; the
degree to which consumers prefer one brand over another. In an attempt to build brand
preference advertising, the advertising must persuade a target audience to consider the
advantages of a brand,often by building its reputation as a long-established and trusted name in
the industry. If the advertising is successful, the target customer will choose the particular brand
over other brands in any category.
Basic communications model for development of brand preference
To better understand the process of brand preference, let's first look at a basic communications
model. The five components of this model are sender, medium, filter, receiver, and feedback. On
a daily basis, we are exposed to messages (sender/medium) via our radio, television, billboards,
Internet, mail, and word-of-mouth. Although these messages are pervasive, we continually
screen out (perceptual screen) or ignore content that has little or no relevance to us. All messages
are coded patterns and sensations – colours, sounds, odours, shapes, etc. Those messages
deemed recognizable, or a basis for a relationship, are decoded and stored in our memory
(filter/screen). A successful convergence between sender and receiver will result in some type of
response to a brand's compelling message (feedback).
Stored experiences in our long-term memory are connected through a series of nodes and
networks. An example could be all the associations you might have with the word Starbucks—
including coffee, rich aroma, relaxing, sofa, earth tones, etc. As presented by Shultz and Barnes,
"This node and connection process, called spreading activation, makes every person

different” (Strategic Brand Communications Campaigns, 1999). Since we all have different
experiences, connections, and relationships, this supports a theory that the consumer, not the
organization, owns the brand.
Consumer prefer particular brand because they find it easier to interpret what benefits brand
offers feel more confident of it and get more satisfaction from using it and get more satisfaction
from using it. Because of such consumer preference, the brand can charge a higher price,
command more loyalty, and run more efficient marketing programmes (e.g. it can spend more
retailer incentive and it cost less to launch brand extension) .The brand preference therefore
command a higher asset value.
Brand Preference choice criteria
There are six criteria choose brand preference. The first three element categorised as “Brand
building” in terms of how brand preference can be built up. And last three elements are known
as
“defensive” because it preserved in the face of different opportunity or different brands available
in market.
• Memorable : - How easily particular brand are recalled? How easily recognised? Is this
true at both purchased and consumption.
• Meaningful :-To what extent particular brand prefer in corresponding category? Does it
suggest something about a product ingredient or the type of person who might use the
brand?
E.g. fair and lovely cream, close-up toothpaste
• Likeability :-How aesthetically appealing do customer finds the brand element? Is it

inherently likeable visually, verbally and in other ways? Concrete brand name such as
Scorpio, Splender
• Transferable : Can the brand element be used to introduce in new product in the same or
different categories? To what extent does the brand add to brand equity across
geographical boundaries and market segments?
• Adaptable :-How adaptable and updatable is the brand element? E.g. Lifebuoy, the
largest selling soap brand all over world.
• Protectible:- How legally protectible is the brand element? How comparatively

protectable? Can it easily copy? It is important that names that becomes synonymous
with product categories. Such as Xerox, Fibreglass.

Six modes for building brand preference
Perhaps the first and most important question to ask is ``How will my prospective consumers
develop their preferences for my brand?'' If we know the answer to that question, then we can
help them build the kind of preference that will ensure greater patronage and loyalty. Consumers
do not develop a preference for M&Ms candy in the same way as they develop a preference for
Maytag washing machines. They do not prefer a BMW over other makes of cars for the same
reason that they prefer Budweiser over other brands of beer. Consumer tastes and preferences for
a product or brand might be built through one or more of six distinct modes:
(1) Need association - The product or brand is linked to one need through repeated association.
(2) Mood association - The mood is attached to the product or brand through repeated
association.
(3) Subconscious motivation - Suggestive symbols are used to excite consumers' subconscious
motives.
(4) Behavior modification - Consumers are conditioned to buy the brand by manipulating cues
and rewards.
(5) Cognitive processing - Perceptual and cognitive barriers are penetrated to create favorable
attitudes.
(6) Model emulation - Idealized social lifestyle models are presented for consumers to emulate.
These six modes are derived from the leading theories and perspectives on human learning that
have evolved in the fields of psychology and social psychology. Need association and mood
association are most closely linked to what is commonly called ``classical conditioning'' and the
work of Pavlov and others of his ilk. Subconscious motivation is derived mainly from the work
of Freud and his disciples while behavior modification has its roots primarily in the behaviorist
learning theories of Skinner and his followers. The cognitive processing mode leans heavily on
the information processing models so thoroughly presented and studied by cognitive
psychological theorists. Finally, model emulation finds its foundation in social psychology and
sociology, specifically in theories of the socialization process, social influence, social role
playing and meeting the expectations of others. Although different consumers might build the
same preference for a particular brand through different modes, certain modes are vastly more
effective for a given type of product or service than for others. In this article we will explore the

most effective ways to build consumer brand preference - the indispensable antecedent to brand
bonding.
RESEARCH
METHODOLOGY

OBJECTIVE OF THE STUDY
 To know the perception of consumers regarding brand equities in FMCG

industry.
 To know the factors that influence consumer or finish users to prefer brand
according to categories in FMCG industry.
 To know the impact of FMCG industry on youngsters or college students.

RESEARCH METHODOLOGY
SCOPE OF THE STUDY
FMCG (Fast Moving Consumer Goods) sector is one of the strongholds and the fourth largest
sector in Indian economy.
FMCG sector is long established and over the years, sustaining ups and downs of the Indian
economy. FMCG sector has total market size of around 14 billion US$. This is one outstanding
achievement in itself. The study then goes on to evaluate and analyse the findings so as to
present a clear picture of customer perception and preference of FMCG brands.
SIGNIFICANCE OF THE STUDY
SIGNIFICANCE TO THE INDUSTRY :
The Fast Moving Consumer Goods (FMCG) industry in India is one of the largest sectors in the
country and over the years has been growing at a very steady pace. The sector consists of
consumer non-durable products which broadly consists, personal care, household care and food
& beverages. The Indian FMCG industry is largely classified as organized and unorganized. This
sector is also buoyed by intense competition. Besides competition, this industry is also marked
by a robust distribution network coupled with increasing influx of MNCs across the entire value
chain. This sector continues to remain highly fragmented.
RESEARCH DESIGN
• EXPLORATORY & DISCRIPTIVE EXPERIMENTAL RESEARCH

The research is primarily both exploratory as well as descriptive in nature. The sources of
information are both primary & secondary.
A well-structured questionnaire was prepared and personal interviews were conducted to collect
the customer’s perception and brand awareness and preference, through this questionnaire.
SAMPLING METHODOLOGY
SamplingTechnique:
Due to time and money constrains judgmental and convenient sampling technique used. A pilot
study was done in order to know the accuracy of the Questionnaire. It is most common
instrument whether administered in person by phone or online questionnaires are very flexible.
The form of each question is also important. Sampling area of the research was
MOHALI(PUNJAB), India.
TYPE OF DATA COLLECTION

Primary data: -
I have taken great care while collecting primary data to answer that it is
relevant, accurate, current and unbiased. I have taken a sample of 100 people.
I have visited them personally to get data.
Secondary data: -
Secondary data consist of information that already exists somewhere,
having been collected for another purpose. I have gathered secondary data
from website of different operators, different magazines, newspapers and
libraries.
Sampling Unit:
It comprise of college students of different streams.

Sample size:
The sample size was restricted to only 100, which comprised of college students from different
colleges of Mohali due to time constraints.
Techniques used for Data Analysis
• Coding : The data collected from all the respondents was compiled and trascribed on the
coding sheet.
• Tabulation of Data : The responses from coding sheets were in the form of frequences.
These were then presented in the forms of tables as it made inference easier.
• Diagramatic Representation : Questions with significant responses were represented in
through form of Percentage graphs.
LIMITATIONS OF THE RESEARCH
1. The research is confined to a certain parts of mohali colleges and does not necessarily
shows a pattern applicable to all of Country.
2. Some respondents were reluctant to divulge personal information which can affect the
validity of all responses.

3. In a rapidly changing industry, analysis on one day or in one segment can change very
quickly. The environmental changes are vital to be considered in order to assimilate the
findings.
DATA ANALYSIS

PART-1 ANALYSIS
Q1. Brands with a high price means good quality compared to other brands?
Q2. Purchase of a well known brand is a pleasant experience for you?

Q3. i am more likely to purchase well known brands ,if any peers or family have purchased such
brands?
Q4. the brand that you buy reflects your personality?

Q5.i think, buying well known brands adds value to my purchase?
Q6. products offered by well known brands are as consistent as promised by the brand?

Q7. the brand I usually purchase always meets my expectations?

Q8. branded products are fashionable and stylish?
Q9. I purchase known brands as a way of self-gifting myself?
Q10. I purchase the product because of my favourite celebrity endorsing it?

PERCEPTION MEAN GRAPH

FACTOR’S SATISFACTION SUMMARY WITH %MEAN VALUES FOR PERCEPTION
QUESTIONS
FACTOR HIGHLY HIGHLY DIS- %MEAN

SATISFIED+SATISFIE SATISFIED+DIS- VALUE
D SATISFIED
Brands with a high 57 15 2.47
price means good
quality compared to
other brands

Purchase of a well 88 2 1.81
known brand is a
pleasant experience
for you.
I am more likely to 62 26 2.49
purchase well known
brands, if my peers or
family have
purchased such
brands.
The brand that you buy 75 12 2.09
reflects your personality
I think, buying well 72 7 2.15

known brands adds
value to my purchase.
products offered by well 58 9 2.37
known brands are as
consistent as promised
by the brand
.
The brand I usually 62 19 2.38
purchase always
meets my
expectations.
Branded products are 69 11 2.12
fashionable and stylish
.
I purchase known 72 11 2.21
brands as a way of
self-gifting myself.
I purchase the product 16 60 3.64
because of my
favourite celebrity
endorsing it
DOUBLE MEAN VALUES FOR PERCEPTION QUESTIONS IS:-
DOUBLE MEAN= 2.37
PART-2 ANALYSIS

1.1.Which brand of personal care products do you prefer to buy and use?(HAIR)
1.2.Which brand of personal care products do you prefer to buy and use?(ORAL)

1.3.Which brand of personal care products do you prefer to buy and use?(SKIN)
2. Which brand of Detergent products do you prefer to buy and use?

3. Which brand of Deodorant products do you prefer to buy and use?
4. Which brand of Bakery products do you prefer to buy and use?

5. Which brand of Milk products do you prefer to buy and use?
6.1.Which brand of Beverage products do you prefer to buy and use?(TEA)

6.2.Which brand of Beverage products do you prefer to buy and use?(COFFEE)
6.3.Which brand of Beverage products do you prefer to buy and use?(JIUCES)

6.4.Which brand of Beverage products do you prefer to buy and use?(CHOCOLATE)
6.5.Which brand of Beverage products do you prefer to buy and use?(SOFTDRINKS)

6.6.Which brand of Beverage products do you prefer to buy and use?(CHIPS)
7.1. Which brand of Electronic products do you prefer to buy and use?(laptops)
7.2. Which brand of Electronic products do you prefer to buy and use?(audio devices)
7.3. Which brand of Electronic products do you prefer to buy and use?(mobiles)
FACTOR ANALYSIS

1.When you buy a personal care product what are the main factors that influence you to prefer
it?
2. When you buy a Detergent product what are the main factors that influence you to prefer it?

3. When you buy a Deodorant product what are the main factors that influence you to prefer it?
4. When you buy a Bakery product what are the main factors that influence you to prefer it?

5. When you buy a Milk product what are the main factors that influence you to prefer it?
6. When you buy a Beverage product what are the main factors that influence you to prefer it?

7. When you buy a Electronic product what are the main factors that influence you to
prefer it?
FACTOR’S SATISFACTION SUMMARY WITH %MEAN VALUES FOR PERSONAL

CARE CATEGORY

D SATISFIED
Price 55 33 2.68
Quality 88 6 1.42
Advertisement 33 45 3.28
Availability 39 33 2.98
Brand image 73 12 2.04
Friend and family 17 53 3.53
influence
Stylish 23 53 3.51
Packaging 15 63 3.79
Value for money 28 48 3.37
services 29 55 3.42

FACTOR’S SATISFACTION SUMMARY WITH %MEAN VALUES FOR DETERGENT
CATEGORY

D SATISFIED
Price 58 27 2.60
Quality 93 3 1.34
influence
Stylish 16 62 3.75
Packaging 6 68 3.96
services 30 49 3.35
FACTOR’S SATISFACTION SUMMARY WITH %MEAN VALUES FOR DEODORANT

CATEGORY

D SATISFIED
Price 56 33 2.67
Quality 88 3 1.43
influence
Stylish 23 51 3.4
services 29 51 3.46
FACTOR’S SATISFACTION SUMMARY WITH %MEAN VALUES FOR BAKERY

CATEGORY

D SATISFIED
Price 54 28 2.65
Quality 93 6 1.32
influence
Stylish 18 60 3.67
services 29 49 3.48
FACTOR’S SATISFACTION SUMMARY WITH %MEAN VALUES FOR MILK

PRODUCTS CATEGORY

D SATISFIED
Price 56 30 2.65
Quality 95 3 1.29
influence
Stylish 18 57 3.67
services 26 51 3.45
FACTOR’S SATISFACTION SUMMARY WITH %MEAN VALUES FOR BEVERAGES

CATEGORY

D SATISFIED

Price 51 33 2.78
Quality 95 2 1.26
influence
Stylish 19 54 3.57
services 33 53 3.45
FACTOR’S SATISFACTION SUMMARY WITH %MEAN VALUES FOR ELECTRONIC

CATEGORY

D SATISFIED
Price 55 30 2.59
Quality 94 1 1.32
influence
Stylish 23 52 3.5
services 35 49 3.29
DOUBLE MEAN VALUES FOR FACTOR’S INFLUENCE THE BRANDS CATAGORIES
CATAGORIES DOUBLE MEAN

PERSONAL CARE 3.002
DETERGENT 3.00
DEODORANT 3.002
BAKERY 3.00

MILK PRODUCTS 3.001
BEVERAGES 3.004
ELECTRONIC 3.016

FINDINGS
FINDINGS
PART-1
1. In the perception satisfaction summary table it shows that Brands with a high price means
good quality compared to other brands? Got 57 response for highlysatisfied+satisfied and 15
response for highlydissatisfied+dissatisfied and its % mean value is 2.47.
2. In the perception satisfaction summary table it shows that Purchase of a well known brand is a
pleasant experience for you? Got 88 response for highlysatisfied+satisfied and 2 response for
highlydissatisfied+dissatisfied and its % mean value is 1.81.
3. In the perception satisfaction summary table it shows that I am more likely to purchase well
known brands, if my peers or family have purchased such brands? Got 62 response for
highlysatisfied+satisfied and 26 response for highlydissatisfied+dissatisfied and its % mean
value is 2.49.
4. In the perception satisfaction summary table it shows that The brand that you buy reflects your
personality? Got 75 response for highlysatisfied+satisfied and 12 response for
5. In the perception satisfaction summary table it shows I think, buying well known brands adds
value to my purchase? Got 72 response for highlysatisfied+satisfied and 7 response for
6. In the perception satisfaction summary table it shows that products offered by well known brands
are as consistent as promised by the brand? Got 58 response for highlysatisfied+satisfied and 9
7. In the perception satisfaction summary table it shows that The brand I usually purchase
always meets my expectations? Got 62 response for highlysatisfied+satisfied and 19 response for
8. In the perception satisfaction summary table it shows that Branded products are fashionable and
stylish? Got 69 response for highlysatisfied+satisfied and 11 response for
9. In the perception satisfaction summary table it shows that I purchase known brands as a way
of self-gifting myself? Got 72 response for highlysatisfied+satisfied and 11 response for
10. In the perception satisfaction summary table it shows that I purchase the product because of
my favourite celebrity endorsing it? Got 16 response for highlysatisfied+satisfied and 60
11. Double mean value for all mean is 2.37. It means respondent’s perception for all aspects is
between satisfied and neither satisfied nor dissatisfied.
12. According to all perception means 1.81 is most prominent so the basic perception is Purchase
of a well known brand is a pleasant experience for you?
PART-2
PERSONAL CARE CATEGORY:-

1. In personal care category for hair respondent choose garnier 46, hair&care 11, parachute 16,
other 33 and for oral, closeup 19, pepsodent 43, colgate 42, other 8 and for skin, dove 46, lux 25,
fair&lovely 12, other 25.
2. For factors influence in personal care category’s brand preference is

D SATISFIED
Price 55 33 2.68
Quality 88 6 1.42

influence
Stylish 23 53 3.51
services 29 55 3.42
3. Double mean value for all means of factors is 3.002.
DETERGENT CATEGORY:-
1. In detergent category respondent choose airel 14, tide 26, surfexcel 64, surf 4, other 6.
2. For factor’s influence in detergent category’s brand preference is

D SATISFIED
Price 58 27 2.60
Quality 93 3 1.34


influence
Stylish 16 62 3.75
Packaging 6 68 3.96
services 30 49 3.35
DEODORANT CATEGORY:-
1. In deodorant category respondents choose setwet 9,axe 33, wildstone 13, fa 16, temptation 26,
other 13.
2. For factor’s influence in detergent category’s brand preference is

D SATISFIED
Price 56 33 2.67
Quality 88 3 1.43

influence
Stylish 23 51 3.4

services 29 51 3.46
3. Double mean value for all means of factors is 3.00
BAKERY CATEGORY:-
1. In bakery category respondent choose tiger 6, goodday 51, britania 39, parle 10, other 8.
2. For factor’s influence in bakery category’s brand preference is

D SATISFIED
Price 54 28 2.65
Quality 93 6 1.32

influence
Stylish 18 60 3.67
services 29 49 3.48
MILK PRODUCTS CATEGORY:-
1. In milk product category respondents choose kwalitywalls 9, amul 33, verka 63, vadilal 5.

2 .For factor’s influence in milk products category’s brand preference is

D SATISFIED
Price 56 30 2.65
Quality 95 3 1.29

influence
Stylish 18 57 3.67
services 26 51 3.45
3. Double mean value for all means of factors is 3.001
BEVERAGES CATEGORY:-
1. In beverages category respondents choose in tea, taza 21, tajmahal 34, brokebond 33, others
14 and in coffee, bru 14, nescaffe 86 and in juices, real 37, fruity 28, Tropicana 34, others 5 and
in chocolates, dairymilk 74, perk 11, munch 9, others 9 and in softdrinks, pepsi 9, coke 24,
m.dew 41,others 27 and in chips, lays 66, kurkure 25, unclechips 16, others 0.
2. For factor’s influence in beverages category’s brand preference is

D SATISFIED
Price 51 33 2.78
Quality 95 2 1.26


influence
Stylish 19 54 3.57
services 33 53 3.45
ELECTRONIC CATEGORY:-
1. In electronic category respondents choose in laptops, Compaq 19, acer 5, sony 22, hp 23, dell
37, others 4 and in audio devices, sony 51,Phillips 15, apple 22, Panasonic 12, Chinese 0, others
7 and in mobiles, nokia 83, lg 6, sony 8, Motorola 5, Samsung 7, others 3.
2. For factor’s influence in electronic category’s brand preference is

D SATISFIED
Price 55 30 2.59
Quality 94 1 1.32

influence

Stylish 23 52 3.5
services 35 49 3.29

CONCLUSION
CONCLUSION
1. From the first part of the questionnaire I conclude the perception of the respondents for certain
characteristics for the FMCG brands. It shows that they mostly prefer these brands because
“purchase of well known brand is a pleasant experience for them.” And then they prefer because
“the brand that they buy reflects their personality.” And at third position they prefer because
“branded products are fashionable and stylish.”
2. In the second part of my questionnaire I conclude that
• For Personal care category Garnier(for hair), Pepsodent(for oral), Dove(skin) are mostly
preferred brands.

• Firstly Quality, secondly Brand image and thirdly Price are the factors those are highly
influenced the brand preference of personal care products.
• For Detergent category Surfexcel is most preferred brand.
influenced the brand preference of detergent products.
• For Deodorant category Axe is most preferred brand.
influenced the brand preference of deodorant products.
• For Bakery category Good day is most preferred brand.
influenced the brand preference of bakery products.
• For Milk products category Verka is most preferred brand.
• Firstly Quality, secondly Brand image and thirdly Availability are the factors those are
highly influenced the brand preference of milk products.
• For Beverages category Tajmahal(for tea), Nescafe(for coffee), Real(for juices),

Dairymilk(for chocolates), Mountain dew(for softdrinks), Lays(for chips) are mostly
preferred brands.
• Firstly Quality, secondly Brand image and thirdly Availability are the factors those are
highly influenced the brand preference of beverages products.
• For Electronic category Dell(for laptops), Sony(for audio devices), Nokia(for mobiles)
are mostly preferred brands.
influenced the brand preference of electronic products.
3. at last I conclude that in first part of my questionnaire mostly respondent’s perception is for all
aspects are between satisfied and neither satisfied nor dissatisfied. And in second part of
questionnaire mostly respondents shown their responses in neither satisfied nor dissatisfied for
factors those influence brand preference for brands in categories of FMCG industry.

ANNEXURE
Questionnaire used in the study:

I am conducting a survey on the topic, A STUDY ON FACTORS THAT ARE RESPONSIBLE
FOR BRAND PREFERANCE IN FMCG PRODUCTS AMONG COLLEGE STUDENTS in

order to find out opinions about certain aspects of brand preference of FMCG products. Please spare a
few minutes to answer the following questions:
FMCG PRODUCTS
We regularly talk about things like butter, potato chips, toothpastes, razors, household care products,
packaged food and beverages, etc. But do we know under which category these things come? They are
called FMCGs. FMCG is an acronym for Fast Moving Consumer Goods, which refer to things that we buy
from local supermarkets on daily basis, the things that have high turnover and are relatively cheaper.
Top FMCG COMPANIES
S. Companies
NO.
1. Hindustan Unilever Ltd.

2. ITC (Indian Tobacco Company)
3. Nestlé India
4. GCMMF (AMUL)
5. Dabur India
6. Asian Paints (India)
7. Cadbury India
8 Britannia Industries
9. Procter & Gamble Hygiene and Health Care
10. Marico Industries
FMCG PRODUCT LIST CATEGORY WISE
• Personal care: oral care, hair care, body care
• Fabric care
• Deodorants
• Bakery
• Milk products
• Beverages
• Electronics
Part I:- Factors that influence preference about FMCG brands:

The left column contains basic questions that will analyse the perceptions that you hold as a consumer
towards well known brand names. Please put a “X” mark in the appropriate column that indicates your
judgement. The distinguishing characters are shown on top of the scale.
Questions Strongly Agree Neither Disagree Strongly

agree Agree or Disagree
Disagree
Brands with a high price
means good quality
compared to other brands
Purchase of a well known

brand is a pleasant
experience for you.
I am more likely to purchase

well known brands, if my
peers or family have
purchased such brands.
The brand that you buy

reflects your personality
I think, buying well known

brands adds value to my
purchase.
products offered by well

known brands are as
consistent as promised by the
brand
The brand I usually purchase

always meets my
expectations.
Branded products are

fashionable and stylish
I purchase known brands as a

way of self-gifting myself.
I purchase the product

because of my favourite
celebrity endorsing it
Part II:-

This part contains a number of questions that will analyse various brand equities in FMCG industry
category wise for their brand preference. Please answer the following questions appropriately to indicate
your judgement. (These are multiple choice questions you can choose more than one)
Personal care category
1. Which brand of personal care products do you prefer to buy and use?
Hair Oral Skin
Garnier( ) closeup( ) dove( )
Hair&care( ) pepsodent( ) lux( )
Parachute( ) colgate( ) fair&lovely( )
Other ( ) other ( ) other ( )
2. When you buy a personal care product what are the main factors that influence you to prefer it?
(Please rank them 1 to 10)
price [ ] friends and family influence [ ]
quality [ ] stylish/prestige [ ]
advertisement(celebrity endorsement) [ ] packaging [ ]
availability [ ] value for money [ ]
brand image [ ] service [ ]
Detergents category
1. Which brand of Detergent products do you prefer to buy and use?
Ariel ( ) tide ( )
Surfexcel ( ) surf ( )
Other ( )

2. When you buy a Detergent product what are the main factors that influence you to prefer it?
Price [ ] friends and

family influence [ ]
quality [ ]
stylish/prestige [ ]
advertisement(celebrity endorsement) [ ] packaging

[ ]
availability [ ] value for

money [ ]
brand image [ ] service

[ ]
Deodorants category
1. Which brand of Deodorant products do you prefer to buy and use?
Setwet ( ) axe ( )
Wildstone ( ) fa ( )
Temptation ( ) other ( )
2. When you buy a Deodorant product what are the main factors that influence you to prefer it?

quality [ ] stylish/prestige
[ ]

[ ]
availability [ ] value for money

[ ]

[ ]

Bakery category
1. Which brand of Bakery products do you prefer to buy and use?
Tiger ( ) goodday ( )
Britannia ( ) parle ( )
Other ( )
2. When you buy a Bakery product what are the main factors that influence you to prefer it?

[ ]

[ ]

[ ]

[ ]
Milk products category
1. Which brand of Milk products do you prefer to buy and use?
Kwalitywalls pdts. ( ) amul pdts. ( )
Verka pdts. ( ) vadilal pdts. ( )
2. When you buy a Milk product what are the main factors that influence you to prefer it?

Quality [ ] stylish/prestige
[ ]
Advertisement (celebrity endorsement) [ ] packaging

[ ]
Availability [ ] value for money

[ ]
Brand image [ ] service

[ ]
Beverages category
1. Which brand of Beverage products do you prefer to buy and use?
Tea coffee juices chocolates softdrinks chips
Taza ( ) bru ( ) real ( ) dairymilk ( ) pepsi ( ) lays ( )
Tajmahal ( ) Nescafe ( ) fruity ( ) perk ( ) coke ( ) kurkure

( )
Brokebond ( ) Tropicana ( ) munch ( ) mountaindew ( ) unclechips

( )
Other ( ) other ( ) other ( ) other ( ) other ( )
2. When you buy a Beverage product what are the main factors that influence you to prefer it?


Quality [ ] stylish/prestige
[ ]
Advertisement (celebrity endorsement) [ ] packaging

[ ]
Availability [ ] value for money

[ ]
Brand image [ ] service

[ ]
Electronics category
1. Which brand of Electronic products do you prefer to buy and use?
Laptops audio equipment mobiles
Compaq ( ) Sony ( ) nokia ( )
Acer ( ) Philips ( ) LG ( )
Sony ( ) apple ( ) Sony ( )
Hp ( ) Panasonic ( ) Motorola ( )
Dell ( ) Chinese ( ) Samsung ( )
Other ( ) other ( ) other ( )
2. When you buy a Electronic product what are the main factors that influence you to prefer it?

[ ]

[ ]

[ ]

[ ]
Personal information:-
Name:-
Gender:-

Age:-
College name:-
Stream:-
THANK YOU
BIBLIOGRAPHY

BIBLIOGRAPHY
 KOTHARI C.R. research methodology, edition 2008.

 Brand preference-en.wikipedia.org/wiki/
 Brand_awareness,www.allaboutbranding.com/index.lasso?
page=11,54,0,www.investopedia.com
 Fmcg-
en.wikipedia.org/wiki/fast_moving_consumer_goods,www.economywatch.com,www.na
ukrihub.com/india/fmcg/overview/
 Fmcg-info.shine.com>industry information.

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A Project Report on the Topic of

“A STUDY ON FACTORS THAT ARE RESPONSIBLE FOR BRAND

Submitted In Final Fulfillment

Requirement of Master Degree in Business Administration

Mrs.HARPOMINDER SUMIT MIDHA

MBA 4th SEMESTER

SAS INSTITUTE OF IT & RESEARCH MOHALI Page 1

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“Teachers open the door, but you must enter by yourself”

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I Sumit Midha, student of MBA at SAHIBZADA AJIT SINGH INSTITUTE OF

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What are Fast Moving Consumer Goods (FMCG)?

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The FMCG structure in India:

Personal Care Home Care Food & Beverages

Kirana Stores Door to Door Internet Super Store/Malls

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The Major Players in the market are: HLL,

HLL is the biggest player in the industry with

FMCG Industry’s revenue per segment

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Size of The Sector:

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• Well-established distribution network extending to rural areas.

• Low export levels.

• Large domestic market.

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Major Government Policies/Changes in the past three years:

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Some critical news:

Outlook Of Investors(list major investors,FII etc.)

Major Merger and Acquisitions in the past two years:

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Expected Future Trends:

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FMCG during Recession

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Definitions of brand preference are as follows:-

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Basic communications model for development of brand preference

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• Likeability :-How aesthetically appealing do customer finds the brand element? Is it

• Protectible:- How legally protectible is the brand element? How comparatively

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 To know the perception of consumers regarding brand equities in FMCG

 To know the impact of FMCG industry on youngsters or college students.

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SIGNIFICANCE OF THE STUDY

SIGNIFICANCE TO THE INDUSTRY :

• EXPLORATORY & DISCRIPTIVE EXPERIMENTAL RESEARCH

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