CHAPTER VII SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSION

Transcription

1 CHAPTER VII SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSION 7.1 INTRODUCTION FMCG is an important contributor to India's Gross Domestic Product (GDP) and is also the fourth largest sector in the Indian economy responsible for providing employment to approximately 5% of the total factory employment. This sector also creates employment for around three million people in downstream activities, which are generally carried out in smaller towns and the rural India. Rural markets account for 56% of the total FMCG demand. The growth has been catalyzed by the ever increasing disposable income in the hands of people especially the middle class. The boom has been further fuelled by decreasing duty, degeneration from the small scale sector and increasing product or packaging innovations from the big FMCG companies. In this chapter the researcher presents the summary of findings, conclusion and suggestions. The main objective of the proposed study examined the various aspects of marketing and consumption of FMCGs. The objectives are as follows: 1. To study the marketing of FMCGs in general and consumer behavior towards Personal care products, Household care products and Food and beverage products in particular in Madurai District. 2. To determine the factors influencing the consumers to purchase particular brands of FMCGs in the study area. 3. To analyze the factors influencing the consumer s attitude towards post purchase of FMCGs. 252

2 4. To examine the relationship between demographic variables of retailers and consumers on the level of satisfaction over FMCGs. 5. To identify the problems faced by the retailers in the marketing of FMCGs. 6. To find out the problems faced by consumers in consumption of FMCGs. 7. To suggest better ways and means for effective marketing of FMCGs in the study area. This study was intended to analyze the perspective of the sample retailers and consumers of the Madurai district in the distribution and consumption of FMCGs. For making a survey with the retail traders, though there are many traders such as whole sale traders, distributors and super markets and shopping malls dealing in FMCGs in the study area, only retail traders were selected. For the selection of consumers by giving equal representation to gender, both male and female consumers were selected. A sample of 200 retail traders and 200 consumers were selected from Madurai district. Hence the applied sampling design of the present study is convenience sampling based on non-probability sampling manner. However the researcher took care to ensure that the sample represented the whole area of Madurai district. In order to collect the primary data, the survey was conducted from March 2012 to October 2012 with the help of pre designed questionnaire. The report of the present study has been organized and presented in seven chapters. The first chapter captioned as Introduction and Design of the Study starts with a brief introduction about the present study. It consists of statement of the problem, Objectives of the study, Scope of the study, Sampling, Hypotheses, Methodology, Data analysis, Limitations of the study and Chapter scheme. 253

3 The second chapter entitled Review of Literature, is a record of review of literature, such as books, articles published in reputed journals, publications, information from websites appropriate for the study. Of the previous studies related to the present research. The third chapter entitled Fast Moving Consumer Goods An Overview, focuses on the subject. The fourth chapter entitled Marketing and Consumer Behavior A Theoretical View, deals with introduction, marketing concepts, marketing mix, major factors influencing consumer behavior, buying decision process and post-purchase behavior. The fifth chapter under the title of Retail Traders An Analysis, presents the analysis. The perception of retail traders about various aspects of FMCGs are motivational factors, and reasons for dealing in FMCGs in retail business, level of satisfaction towards retail trading of FMCGs, opinion of factors influencing the level of satisfaction and problems faced by retail traders on marketing of FMCGs. The sixth chapter under the caption of Consumers Perception An Analysis, is a microscopic analysis the respondents, opinion about reasons for buying FMCGs from retail stores and supermarkets/departmental stores and reasons for buying of FMCGs from the same shop, Consumer attitudes towards post-purchase of FMCGs, and examines factors influencing brand preference, factors influencing level of satisfaction and problems towards consumption of FMCGs. 254

4 The seventh chapter, Summary of Findings, Suggestions and Conclusion, presents the overall findings from the interpretation of the results of the analysis and tables suggestion for furtherance of business and satisfaction. 7.2 SUMMARY OF FINDINGS Retail Traders An Analysis On education of the traders, 31.5 per cent of respondents have studied up to SSLC, 35 per cent of the respondents had studied up to HSC and 21 per cent of them had studied up to degree level whereas only 2.5 per cent of respondents had studied professional education. About age, 45.0 per cent of the retail traders are in the age group of years, 2.5 per cent above 50 years. Similarly 26.5 per cent belong to the age group of 30 to 40 years. Out of 200 respondents interviewed from the entire village of Madurai district, vast majorities of 87.5 per cent are males and remaining 12.5 per cent are females. On religion, 56.5 per cent belonged to Hindu category, whereas 15 per cent to Muslim category and 28.5 per cent of them belonged to Christianity. About caste, 39.0 per cent of the retail traders belong to backward class and 18 per cent belonged to the scheduled caste. About the status of the retail traders in the business, all the select retail traders are Sole Proprietors of their concerns. On the capital of the retail traders in the business, 48.5 per cent of the retail traders have a capital investment up to Rs. 1,00,000 and 14.5 per cent of them invested 255

5 from Rs. 1,00,000 to Rs.2,00,000 whereas 28.5 per cent of the retail traders invested above Rs. 3,00,000 in their retail business. Regarding the sources of finance for retail traders, 46.0 per cent of the retail traders are funded by borrowings from banks, 7.5 per cent of them availed finance from relatives, 18.5 per cent from money lenders and 28.0 per cent of them had own funds. Separating on motivational factors, majority of the respondents expresses that retailing of FMCG is hereditary occupation hence it is ranked followed by profitable business, own idea and personal interest are ranked second and third respectively. Similarly experience in the field, unemployment problem and persuasion of the friends and relatives occupied fourth to sixth rank respectively. With regard to experience to business, 25.0 per cent of the retail traders have 5 years of experience, 31.0 per cent have an experience of 6 10 years, and 18.0 per cent have an experience of years whereas 26.0 per cent had an experience of above 20 years. Opinions on membership in association, 75.0 per cent of the respondents are members in trade association whereas 25.0 per cent of them not members in any association under study. Of which 60.5 per cent of the respondents opined that they jointed association in order to get mutual help and 39 per cent of them opined that they are member in trade association to widen their business contacts. Opinion on methods of formation of business, 42.5 per cent of the respondents have undertaken family business and 47.5 per cent have newly started their business whereas 10.0 per cent have purchased their business from others. 256

6 On role of retail traders in their business, 73.0 per cent of 200 respondents opined that they have undertaken overall management of business and 12.5 per cent of them opined that they have financed only in their business and routine function of business is done by some of the family members whereas 9.5 per cent of them have involved only in the purchase function under study. About the registration of their business, 50 per cent of the total respondents have registered their business under TIN / TNGST since they belonged to super market category whereas 50 per cent of the respondents have not registered since they belonged to Retail Traders. Out of 100 respondents who have not registered, 30 per cent have done so for lack of knowledge whereas 50 per cent have not registered since they are not willing to do so are 20 per cent have not registered since their business is very small. Regarding the number of employees engaged in retail trading of FMCGs, 38 per cent of the respondents run their business by themselves without having any employees whereas 25.5 per cent have engaged of 3 to and of 6 employees and 17 per cent have engaged more than 6 employees. Of the major five brands of soap sold in the study area, 69 (34.5%) opt for Hamam soap. Of the shampoos, 65 (32.5%) retailers market Pantene shampoo. Among hair oil 58 (29.0%) retailers select Aswini hair oil. Regarding the toothpaste 80 (40.0%) retailers go in for Colgate. Of the major five brands of detergents, 73 (36.5%) of 200 retailers prefer Surf Excel. Among the Toiletries, 72 (36%) retailers opt for Harpic. While among the Mosquito Repellents 64 (32%) retailers prefer Goodknight. About the dish wash, 77 (38.5%) retailers go in for Vim. 257

7 Of the major five brands of soft drinks, 65 (32.5%) prefer Pepsi followed by Coco-Cola 43 (21.5%). As far as Tea/Coffee is concerned 60 (30.0%) retailers opt for Bru. 80 (40%) retailers go in for Aashirvaad is flour varieties. Of the Cooking oil, the choice of 67 (33.5%) retailers is Gold Winner. About the sources of supply of FMCGs, 66 per cent of the respondents purchase their stock of FMCGs directly from wholesale store whereas 34 per cent opine purchase from area distributors. With reference to nature of supply of FMCGs, 64.5 per cent of the respondents purchase their stock of FMCGs from the regular suppliers whereas 35.5 per cent from any supplier. About the mode of purchase of FMCGs, 55.5 per cent of the respondents purchase FMCGs by direct purchase method from the regular suppliers whereas 29.5 per cent telephone and 15 per cent through mail/online purchase. On the terms of purchase of FMCGs, 17 per cent of the respondents purchase the FMCG on cash alone and 50 per cent on cash cum credit basis and the remaining 33.0 per cent on credit basis only. Regarding of period for payment of credit purchase of FMCGs, 166 retail traders who purchase the FMCGs on credit, 83.5 per cent settle the amount of credit within in 15 days while 10 per cent within 15 to 30 days and 4.5 per cent within a 30 to 45 days. 33 per cent of the respondents sell their FMCGs at MRP only whereas 50 per cent sell at subsidized price as remaining 17 per cent at above MRP per cent of the respondents sell the FMCG for ready cash alone and 28.5 per cent for cash cum credit and the remaining 14.5 per cent sell for credit only. 258

8 Regarding the Period for Payment on Credit Sale of FMCGs, 86 retail traders sell the FMCGs for credit, receive the repayment of loan within 4 days whereas an identical of 22 per cent receive the amount within 2 days and above 6 days respectively. On the mode of transportation used in trading of FMCGs, 34 per cent of the retail traders make their own arrangement by their own vehicle while 47.5 per cent take the stock by door delivery system from distributors and 18.5 per cent through rented vehicles. About the reasons for dealing in FMCGs in retail business, majority of retail traders are in the business because of Low cost covering wide range of customer the mean score value shows highest at 6.35 and so it is ranked first rank followed by Creating adequate demand and Adequate supply of FMCGs the other reasons and they ranked are second and third position with a mean score value of 6.14 and 6.11 respectively. Regarding the method of selling of FMCGs, 74.5 per cent of the retail traders are engaged only in the counter sales whereas 25.5 per cent through profit door delivery sales per cent of the retail traders use credit sales and 24.5 per cent use advertisement as promotional tools to improve their sales of FMCGs. On the mode of advertisement used for sale of FMCGs, 17 per cent of the retail traders use point of purchase display advertisement while 54 per cent use cable television advertisement to improve their sales of FMCGs. Similarly since the responses of the retail traders towards factors influencing the level of satisfaction on retail trading of FMCGs are less than that neutral value of 600, according to Likert s Summated Scale, the respondents are believed to be 259

9 dissatisfied with the factors such as terms of unsold goods return to distributors, income from FMCG marketing, price offered to traders by distributors, demand of consumers, availability of variety of FMCG goods, customer relations, relationship between distributor and traders. Since the responses of the retail traders towards factors influencing the level of satisfaction on retail trading of FMCG are more than the neutral value of 600, according to Likert s Summated Scale, the respondents are believed satisfied with the factors such as Credit terms Sales of FMCGs and Terms of delivery of goods. Result of ANOVA, makes it clear that no significant variation in the education of the respondents among the various factors such as adequate demand, higher profit, immediate sales, low cost, supply is assured and family business and the reasons for trading of FMCGs at 5 per cent level of significance. Similarly there was no significant variation in the age of the respondents among the various factors such as adequate demand, higher profit, immediate sales, low cost, supply is assured, quality and no separate promotion needed and the reasons for dealing on trading of FMCGs at 5 per cent level of significance. Similarly there was no significant variation in the sex of the respondents among the various factors such as higher profit, low cost, supply is assured, quality and family business and the reasons for dealing on trading of FMCGs at 5 per cent level of significance. There was no significant variation in the religion of the respondents among the various factors such as higher profit, low cost, supply is assured, quality and family business, immediate sales and no separate promotion needed and the reasons for dealing on trading of FMCGs at 5 per cent level of significance. 260

10 There was a significant variation in the community and amount of investment of the respondents among the various factors such as adequate demand, higher profit, low cost, supply is assured, quality and family business, immediate sales and no separate promotion needed and the reasons for dealing on trading of FMCGs at 5 per cent level of significance. 54 (27%) respondents who had studied to HSC education have moderate level of satisfaction to retail trading of FMCGs, while 7 (3.5%) have low perception. 60 (30%) respondents belonging to the age group of years have moderate level of satisfaction towards trading of FMCGs, while 23 (11.5%) have low perception. 110 (55.0%) of male respondents have moderate level of satisfaction on retail trading of FMCGs, while 32 (16.0%) have low perception. 67 (33.5%) respondents belonging to the Hindu religion have moderate level of satisfaction on retail trading of FMCGs, while 21 (10.5%) have low perception. 50 (25.0%) respondents of the BC community have moderate level of satisfaction on retail trading of FMCGs, while 9 (4.5%) have low perception. 63 (31.5%) of respondents who have invested up to Rs. 1,00,000, have moderate level of satisfaction on retail trading of FMCGs, while 21 (10.5%) have low perception. 43 (21.5%) of respondents who have invested their own funds, have moderate level of satisfaction on retail trading of FMCGs, while 7 (3.5%) have low perception. Results of Chi Square test show that the computed value is less than the table value, there is no significant relationship between sex, religion of the retail traders and level of satisfaction on retail trading of FMCGs. Similarly as the computed value is 261

11 more than the table value, there is a significant relationship between age, community, amount of investment, nature of retail traders and sources of investment of the retail traders and level of satisfaction to retail trading of FMCGs. On the results of factor analysis, the first factor Demand and Sales of FMCGs represents five variables of which the variable availability of variety of FMCGs goods ( ) has the highest significant positive loading. The second factor Cost and Margin consists of three variables of which highest significant positive loading is Credit Terms ( ). The third factor Customer Relation consists of two variables. Of these Consumers Relations ( ) has the higher significant positive loading. About the problems faced by retail traders on marketing of FMCGs, as the calculated value is greater than the table value (i.e., 0.096), the null hypothesis framed on the statement such as frequent price fluctuations, undue delay in supply, variations in quality, pilferage, lack of credit facilities, loss due to storage, loss on account of unsold stock, shortage of working capital, arrivals low priced Chinese goods, inadequate supply of most wanted goods and misuse of sales person is rejected. As such, there is a significant difference in the importance ratings given by the select retail traders. Similarly as the calculated value is less than the table value (i.e., 0.096), for the null hypotheses framed on the statement such as damaged goods, problems of credit sales, competition and rival goods and presence of larger role of super markets is accepted. As such, there is no significant difference in the importance ratings given by the select retail traders. 262

12 Further the different intensities of favorability and unfavorability of the retail traders on their respective scores in the problems of retail trading of FMCGs from the point of view of retail traders of Madurai district were analyzed. The results of the analysis are as follows: Out of 200 respondents 154 (77.0%) feel that the frequent price fluctuations affect retail trading of FMCGs. 77 (38.5%) of the respondents feel that the undue delay in supply of FMCGs affect retail trading of FMCGs. 66 (33.0%) respondents feel that variations in the quality of products affect the retail marketing of FMCGs. 42 (21%) respondents feel that pilferage affect the retail trading of FMCGs. 115(57.5%) respondents feel that lack of credit facility affect the retail marketing of FMCGs. 98 (49.0%) respondents feel that damaged good affects retail marketing of FMCGs. 106 (53.0%) respondents feel that loss due to storage affects retail trading of FMCGs. 106 (53.0%) respondents feel that problem of credit sales affects retail trading of FMCGs. 120 (60.0%) of the respondents feel that loss on account of unsold stock also affect the retail marketing of FMCGs. 112 (56.0%) respondents feel that shortage of working capital affects the growth of retail trading of FMCGs. 83 (41.5%) respondents feel that competition and rival goods affect the retail marketing of FMCGs. 263

13 92 (46.0%) respondents feel that arrivals low priced Chinese goods also affects retail marketing of FMCGs to some extent. 108 (54.0%) respondents feel that inadequate supply of most wanted goods also affects retail marketing of FMCGs to some extent. 92 (46.0%) respondents, opine that larger role of super markets affects retail trading of FMCGs. 76 (38.0%) respondents express that misuse of sales person affects retail trading of FMCGs. About the risk bearing in retail trading of FMCGs, 46.0 per cent opine that the risk of theft and fire in retail trading of FMCGs is barred by recovery from insurance. Similarly 46.5 per cent opine that the risk of unsold stock in retail trading of FMCGs is barred by recovery from the company and distributors. Regarding the sources of marketing information towards retail trading of FMCGs, 47.5 per cent of the retail traders find the traders association to be a source of marketing information in retail trading of FMCGs whereas for 24.5 per cent the publication of websites is one of the sources of marketing information. About the FDI in retail marketing of FMCGs, 92.5 per cent of the retail traders do not favor of FDI in retail trading of FMCGs. 264

14 7.2.2 Consumers Perception An Analysis Out of 200 respondents, 50 per cent of the respondents are males and 50 per cent are females. On age, 43.5 per cent of the respondents belong to the age group of below years old. About marital status, 77.5 per cent of the respondents are married under study. Regarding the education, 42 per cent of the respondents are graduates, 27.5 per cent school level education. On occupational status, 29.5 per cent of the respondents are to agriculturists, and 48.5 per cent are the employees. About income, 20.5 per cent of the respondents earn below Rs.5, 000 and 27.5 per cent earn from of Rs. 5,001 to 10,000. On the position in family, 35.0 per cent of the respondents are fathers and 30.5 are mothers. On the monthly budget against purchase of FMCGs, 47 per cent of the respondents spend up to Rs. 1,000 for purchasing personal care products whereas 67 per cent spend up to Rs. 1,000 towards house hold care products. Regarding the monthly expenditure on food and beverages, 66.5 per cent of the respondents spend up to Rs. 1,000. On sources of purchase of FMCGs, 50 per cent of the respondents have purchase FMCGs from the Retail Stores whereas 50 per cent purchased FMCGs from super market. On reasons for buying of FMCGs from retail stores, majority of consumers Nearness of proximity as the major reason for and as the mean score value is the 265

15 highest at 3.55 ranked first followed by Credit Purchase and Non existence of Other Stores in the Nearby Areas. On reasons for buying of FMCGs from Super Markets, majority of consumers cite availability of all products at one roof as the main reasons and as the mean score value shows highest a 4.07 it is ranked in first followed by Free to Selection of Products and Offering Gift and Contest is another reasons associated with buying of FMCGs from super market. On the buying of FMCGs from the same shop always, 86.5 per cent of the respondents by the FMCGs from the same retailers in every time. On the reasons for buying of FMCGs from the same shop always, majority of consumers cite the trader is near to my house is the main reasons related with buying of FMCGs from the same store since per cent of respondents were favor to this statement hence it is ranked first rank followed by the trader keeps adequate stocks and makes the product available always and the traders offers credit facility is another reasons associated with buying of FMCGs from the same store and it is ranked in second and third position since per cent and per cent are favor to this statement respectively. On the time intervals of buying of FMCGs, 25.5 per cent opine purchase FMCGs weekly once whereas 32.0 per cent purchase FMCGs whenever needs arises. About the mode of payment for buying of FMCGs, 56.0 per cent purchase FMCGs for cash only whereas 34.0 per cent FMCGs for both cash and credit under study. On period for repayment on credit purchase of FMCGs, out of the 88 consumers who purchase the FMCGs for credit, 25 per cent of the consumers for purchase of FMCGs from their traders within a week. 266

16 Awareness about FMCGs products, 118 (59.0%) of the consumers have stated that the awareness about FMCGs products and brands through television is highly effective awareness followed by 85(42.5%) of the consumers have stated that the awareness about FMCGs products and brands through radio is ineffective among the various sources of creating awareness and 69 (34.5%) of the consumers have stated that the awareness about FMCGs products and brands through internet is no idea among the various sources of creating awareness followed by hoarding 44(22%) wall painting 42 (21%) and it occupies the next position accordingly. Of the five brands of soap preferred in the study area out of 200 selected consumers 54 (27.0%) have preferred the Hamam. Of the shampoos, 51 (25.5%) Clinic plus shampoo. Among hair oil 98 (49.0%) consumers select Parachute hair oil. Regarding the toothpaste 125 (62.5%) consumers go in for Colgate. Of the five brands of detergents preferred, 57 (28.5%) of 200 consumers prefer Power. Among the Toiletries, 64 (32%) consumers opt for Domex. While among the Mosquito Repellents 60 (30%) consumers prefer Good knight. About the dish wash, 67(33.5%) consumer go in for Vim. Of the major five brands of soft drinks, 68 (34%) prefer Bovanto followed by 7 up 44 (22%). As far as Tea/Coffee concerned 60 (30.0%) consumers use for 3 Roses, While 59 (29.5%) consumers go in for Annapurna flour varieties. Of the Cooking oil, the choice of 69 (34.5%) retailers is Anjali. On the buying of same brand of FMCGs always, 61 per cent of 200 respondents do not purchase the same brand of FMCGs every time of purchase. On the reasons for not buying of same brand of FMCGs always, out of 122 respondents, 39 per cent of the respondents have who change the brand of purchase do so as they want to take the advantages of newly introduced products. 267

17 On the sources of awareness of price of FMCGs, 53.5 per cent getting awareness of price FMCGs through personal enquiry while 21.5 per cent of the respondents through experience of previous purchase. On the time of decision taken to the purchase of FMCGs, 72 per cent of the respondents take spot decision on the choice of particular brand of FMCGs. On the buying motives of the FMCGs, 36 per cent of the respondents are motivated to purchase the FMCG to attract opposite sex, 28 per cent were motivated since they want to make others admire or respect. Regarding the perception of the consumers towards attitudes post purchase of FMCGs, above 50 per cent of the respondents have a positive attitude towards the statements such as suggested the desired brand to my relatives, share my experiences in using the product with my friends, relatives and neighbors, realizing of wrong selection of brand, pack size and shop, diminishing of purchase if not satisfied with purchase, complain to the traders if not satisfied with the product/ service and suggesting others for stopping from buying the brand if not satisfied with the product / service whereas the respondents not giving positive response on the statement that non response to others speaking about the desired brand. In the personal care products that majority of customers have opined that Freshness is the major reasons related with selection of particular brand of FMCGs and since the mean score value shows highest i.e it is ranked in first place followed by Medicinal value and Advertisement which is another reasons associated with selection of particular brand of FMCGs and it is ranked in second and third position and its mean score value shows 9.89 and Household care products that majority of customers have opined that Company image is the major reasons related with selection of particular brand of 268

18 FMCGs and since the mean score value shows highest i.e it is ranked in first place followed by Date of manufacturing and Advertisement which is another reasons associated with selection of particular brand of FMCGs and it is ranked in second and third position and its mean score value shows 9.94 and Food and beverage products that majority of consumers have opined that Date of manufacturing is the major reasons related with selection of particular brand of FMCGs and since the mean score value shows highest i.e it is ranked in first place followed by Price and Availability in different sizes which is another reasons associated with selection of particular brand of FMCGs and it is ranked in second and third position and its mean score value shows 9.93 and On the decision making towards purchase of various brand of FMCGs, 86 (43%) of the respondents have expresses that the decision on the on the purchase of various brand of FMCG is taken by husband in the family. On the factors influencing the level of satisfaction on consumption of FMCGs, Responses recording the level of satisfaction of the respondents for the factors such as Quality, Price, and Availability in different size, Package, Advertisement and Company brand image are more than neutral value of 600. Hence according to Likert s Summated Scale, the respondents are satisfied with those factors. Similarly on the responses regarding the level of satisfaction of the respondents on the factors such as Colours and Taste are less than the neutral value of 600. Hence according to Likert s summated scales, the respondents were dissatisfied with those factors under study. On the results of ANOVA, there is no significant variation in the age of the respondents among the various factors such as the trader offers credit facility, the 269

19 traders is near to my house, and reasons for buying of FMCGs from same traders always at 5 per cent level of significance. There is a significant variation in the marital status and monthly income, position in the family of the respondents among the various factors such as the trader offers credit facility, the traders gives the products for reasonable price, the traders keeps adequate stocks and makes the product available always, the traders keeps varieties of products, the traders is trustworthy, the products are fresh, the products are neatly displayed in the store, the service by the traders is very fast, the traders gives free home delivery and inside the shop get a chance to involve in shopping and reasons for buying of FMCGs from same traders always at 5 per cent level of significance. Similarly there is no significant variation in the education and occupation of the respondents among the various factors such as the trader offers credit facility, the traders is near to my house, the traders gives free home delivery and reasons for buying of FMCGs from same traders always at 5 per cent level of significance. Out of the 200 respondents, 59 (29.5%) of male respondents have a moderate level of satisfaction on consumption of FMCGs, while 32 (16.0%) have a low perception. Similarly 71 (35.5%) of female respondents have a moderate perception towards level of satisfaction on consumption of FMCGs, while 1 (0.5%) have a low perception. Similarly out of the 38 (19%) respondents belonging to the age groups of above years have a moderate level of satisfaction on consumption of FMCGs, while 29 (14.5%) have low a perception. 270

20 98 (49%) of married respondents have a moderate perception towards level of satisfaction on consumption of FMCGs, while 32 (16.0%) have a low perception. 57(28.5%) respondents belonging to the graduates among respondents have a moderate level of satisfaction to consumption of FMCGs, while 21 (10.5%) have a low perception. 64 (32%) respondents belonging to the employees groups have a moderate level of satisfaction to consumption of FMCGs, while 19 (9.5%) have low perception. Similarly 44 (22%) respondents earning to above Rs. 15,000 have a moderate level of satisfaction to consumption of FMCGs, while 8 (4%) have a low perception. 55 (27.5%) respondents belonging to the mother category in the family have a moderate level of satisfaction to consumption of FMCGs, while 6 (3%) have a high perception. On problems faced by customer on consumption of FMCGs, As the calculated value is greater than the table value (i.e., 0.096), the null hypothesis framed on the statement such as misleading information, selling of expired product, damaged goods, loss of quantity, inadequate availability of most wanted goods, higher rate, differential attitudes of traders, exploitation of traders in giving free, lack of information provided to customer about FMCGs, bills for purchase not provided is rejected. As such, there is a significant difference in the importance ratings given by the select consumers. According to intensity value analysis, 130 (65.0%) respondents stated that the misleading information not affects consumption of FMCGs. 271

21 77 (38.5%) respondents feel that the selling of expired product which affect consumption of FMCGs. 66(33.0%) respondents feel that damaged goods affect the consumption of FMCGs. 148(74.0%) respondents feel that loss of quantity not affects the further growth of consumption of FMCGs. 115(57.5%) respondents feel that inadequate availability of most wanted goods affects the consumption of FMCGs. 106(53.0%) respondents stated that higher Rate affects consumption of FMCGs. 98(49.0%) respondents stated that differential attitudes of traders which affects consumption of FMCGs. 106(53.0%) respondents feel that exploitation of traders in giving free affects consumption of FMCGs. 120 (60.0%) respondents feel that lack of information provided to consumers about FMCGs also affects the consumption of FMCGs. 112 (56.0%) respondents stated that bills for purchase not provided affects the further growth of consumption of FMCGs. About the opinion of consumers on FDI in retail marketing of FMCGs, 52.5 per cent of the consumers opine that they are favorable to allowing of FDI in retail trading of FMCGs under study. 272

22 7.3 SUGGESTIONS 1. From the analysis it is understood that the level of satisfaction of the retailer on the relationship between distributor/traders and customer relations, is less than the neutral value of 600. Hence according to summated scale, it means that the retailers are dissatisfied with those factors. Hence it is recommended for sustenance to healthy relationship between traders with association and customers. 2. Consumers must be given a choice to select the product availability of the local branded products in the retrial store, there should be important guideline given by the FMCG Company of the different FMCG product categories such as personal care, household care and food and beverage. 3. Illiteracy makes many of consumers, unaware of the offers provided by the companies. Hence many of the retailers in rural market cheat the consumers now and then. Further the retailers sell the free goods to consumers. Hence steps should be taken to check whether free goods reach the consumers properly. 4. The trader has to provide necessary as relevant information personal care, household care and food and beverage products on to consumer, so as to raise awareness among the new consumers. Hence it is recommended that innovative information may be added for further improvement of sale among the new customers. 5. From the analysis it is understood that the respondents are not very highly influenced by freshness, medicinal value, health, company image, and advertisement. Hence the marketing environment of the FMCGs should improve the other factors like freshness, medicinal value, health, company image and advertisement. 273

23 6. Responses regarding the level of satisfaction of the respondents on the colour and taste, the result is less than the neutral value of 600. Hence according to summated scale, it is concluded that the respondents are dissatisfied with those factors. Hence it it s suggested to the FMCG manufacture that they should improve factors like color and taste. 7. It has been observed that increasing consumers are reading through the nutritional information on products and becoming more conscious of harmful impact of categories such as personal care, household care and food and beverage. The FMCG industry should give information about the brand, it benefits. 7.4 CONCLUSION FMCG companies in India have always enjoyed a vast potential market because of the large population of the country. The improved economic situation of both the rural and urban consumers has helped FMCG companies further expand their market to the hinterlands of the country. The Indian FMCG companies enjoy a diverse industrial base and offer a variety of products to consumers, namely toiletries, personal care products, soaps, detergents, oral hygiene, packaged foods, beverages, grooming products, healthcare products, plastic products, bulbs, batteries, glassware. It is the fourth largest sector in India, creating employment for more than 3 million people in the country. The new phase of rural consumption appears to provide a great opportunity for the FMCG sectors. Marketers will need to evolve new strategies to connect and communicate with a more aware and unreserved consumer than ever before. With this, product and brand development cycles will need to undergo a dramatic change. Today s rural consumer is not just indulgent, but smart too. They want products that 274

24 carry the best of traditional wisdom and modern science, providing them convenience and individualism. Recognizing this, FMCG Companies can change the consumer's mindset and offer new generation products. Therefore the producers of FMCG have to progressively strengthen their distribution reach in the Indian rural market. At the same time there are key challenges for FMCG producers who are penetrating the rural markets such as poor distribution system, fragmented rural market and heterogeneity of Indian population. Hence the FMCG producers should understand these challenges and tune their strategies accordingly will surely be the winners in the years to come taking advantage of this economic boom for FMCGs in the rural sector of India. 7.5 SCOPE FOR FUTURE RESEARCH In continuation of the above research there is further scope for extensive research activities in the field of FMCGs marketing and consumption. In this regard the following topics are suggested for further research. 1. Effectiveness of FMCGs Distribution Channels with Respect to Satisfaction of Consumers in Urban markets. 2. Marketing Strategy and Consumer Behavior towards FMCGs with Reference to Rural Areas in Tamil Nadu. 3. A Comparative study may be attempted to analyze the Perception of Consumers towards Foreign branded goods with Indian branded goods. 4. A study on the effect of Advertisement among the Rural Consumers towards FMCGs may be attempted as further research in future. 275