AVS international Journal of Multidisciplinary Research

Transcription

1 A STUDY ON PURCHASE BEHAVIOUR OF RURAL CONSUMERS TOWARDS SELECTED FMCG WITH SPECIAL REFERENCE TO PERSONAL CARE PRODUCTS IN SALEM DISTRICT * G.Kannan * K.Sundararajan * Asst. Prof, PG & Research Dept. of Commerce, AVS College of Arts & Science, Salem. INTRODUCTION TO FMCG Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods. FMCG products are those that get replaced within a year. Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG), though the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large. Examples of FMCG generally include a wide range of frequently purchased consumer products such as soap, cosmetics, tooth products and detergents. The term FMCGs refers to those retail goods that are generally replaced or fully used up over a short period of days, weeks, or months, and within one year. This contrasts with durable goods or major appliances such as kitchen appliances, which are generally replaced over a period of several years. FMCG is also known as consumer packaged goods. FMCG Companies manufacture the products that are consumed by people at regular intervals. These products include the toothpaste, soaps, shampoos, packaged foods, etc. FMCG goods are actually meant for daily purpose products demanded by the customers and it gives a high return to the companies. LIST O COMPANIES IN FMCG SECTOR (PERSONAL CARE CATEGORY) The personal care category has the largest number of brands, 21, inclusive of Lux, Lifebuoy, Fair and Lovely, Vicks, and Ponds. There are 11 HLL brands in the 21, 54% of the personal care category. Dabur is among the top five FMCG companies in India and is a herbal specialist. Dabur has brands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola and Real. SWOT ANALYSIS OF FMCG Strengths: (i) Well-established distribution network extending to rural areas. (ii) Strong brands in the FMCG sector. (iii) Low cost operations. P a g e 8 Vol.1 Issue.1 July 2018

2 Weaknesses: (i) Low export levels. (ii) Small scale sector reservations limit ability to invest in technology and achieve economies of scale. (iii) Several "me-too products. Opportunities: (i) Large domestic market. (ii) Export potential (iii) Increasing income levels will result in faster revenue growth. Threats: (i) Imports. FACTORS INFLUENCING THE SALE OF FMCGS IN RURAL MARKET & FUTURE PROSPECTS FOR FMCG During the fiscal year , sale of FMCGs in rural and urban areas are reported to have increased substantially due to heavy advertisement. The electronic media has been playing a crucial role in creating awareness and strengthening FMCG products in rural and urban markets. Over 70% of the sale of FMCG products is made by middle class households and of this 50% is sold to the middle class in rural India. A major share of the profits of FMCG companies comes from rural areas. The consumption of FMCGs as a whole would show a substantial increase to come; the share of rural markets is likely to increase as growth in urban areas may slow down. Comparative stagnation in urban areas may also compel marketers to shift their focus more towards rural areas. However, up gradation among urban consumers to premium and higher quality brands, organic and environment friendly products etc. is likely to bring about some degree of shift in the pattern of demand for FMCGs in urban areas. Considering another dimension, increased competition could further reduce the margins for FMCG players. SCOPE OF FMCG The study focused on the point of view of rural consumers and hence an attempt is made to analyze the purchase behavior of the consumers towards selected FMCG products personal care products. In addition to it, the research has been undertaken to analyze the inducing factor for purchasing the product, the satisfactional level about the usage of the products and also to know the opinion of recommending to other consumers. Here the researcher would also like to conclude that with the help of advertisement the consumers are well aware of the FMCG companies and their product which creates impact on the purchase behavior of the urban consumers and also the difficulties which are faced by the consumers at the time of purchase. NEED OF THE STUDY FMCG sector is a major driving force behind the economic development of the country only through rural areas. It is aimed at a wide coverage of consumers from all over the world. India occupies P a g e 9 Vol.1 Issue.1 July 2018

3 STATEMENT OF THE PROBLEM second place in population so the level of consumption of products is more when comparing to other countries and hence because of this the FMCG companies are utilizing this opportunities to produce and sell their products in large volume. In this globalized world due to heavy competition all the FMCG companies have the responsibility to innovate new products for sustain their markets to retain their customers and also to attract new consumers. IMPORTANCE OF THE STUDY The rural consumers are high when compared to the urban consumers and also the rate of consumption and the level of purchase behavior are also high in the rural areas. At the same time they are able to analyze the position of the existing product prevailing in the market and even they are giving the entry pass for the latest products with their brands. The purchase behaviors of the rural consumers are the stepping way of the purchase behavior of the urban consumers. In addition to it, the usage of FMCG products by the rural consumers may be more than the urban consumers. The quantitative aspect is the major factor for increasing the profit of the fmcg companies. Finally the formulating strategy of the FMCG markets is based on the rural markets and it is in this context that understanding and identifying the purchase behavior of the rural consumers emerge as a crucial role and it holds the key to marketing success. Now a day s many varieties of personal care products like toothpaste & brush, bath soap, shampoo, hair oil, cosmetics etc are available in the market but the users are not in a position to identify and select a particular brand. In spite of this only some of the sources induce them to buy those products. In the mean time, the level of income and size of the family also affects the purchase behavior of the consumers which determines their standard of living. The researcher studies the level of satisfaction about the usage of their products and also to know the opinion of recommending it to other consumers. Finally, advertisements plays a vital role in informing about the product information to the consumers hence, the study focus on the impact of advertisement which affects the purchase behavior and what are all the problems faced by the consumers. OBJECTIVES OF THE STUDY 1. To discover the origin and growth of FMCG sector. 2. To know the profile of FMCG companies in India. 3. To know the profile of the Personal Care Product categories. P a g e 10 Vol.1 Issue.1 July 2018

4 4. To identify the factors influencing the purchase behaviour of FMCG by rural consumers. 5. To offer suitable suggestions to the FMCG companies. METHODOLOGY Collection of Data: Primary data required for the study were collected from the rural consumers who are located in Salem District. Collections of secondary data were collected from various literature reviews from various thesis, journals, magazines, books and websites etc. Sampling Design: The questionnaire was pretested with 05 consumers and then it was finalized. The survey was conducted among 100 respondents in Salem District. LIMITATIONS OF THE STUDY 1. The study is conducted only in Salem District. 2. The consumer s opinion may change from time to time. 3. The study is mainly focused on rural consumers only. 4. The study is focused only on personal care products. REVIEW OF LITERATURE ON FMCG It is concluded from this study that FMCG sector is growing and will continues to grow very fast. The futures for the FMCG sector look extremely encouraging. The sector having under gone a structural change is all set to emerge stronger in future. The FMCG market remains highly fragmented with almost half of the market representing brand up package homemade product. This presents a tremendous opportunity for the markets of branded product. The study on the consumer behaviour towards the products of FMCG has received a pivotal position in the market for paste, soap, shampoo although there are many competitors in the market.fmcg was able to maintain hold its top rank providing quality product at reasonable price to consumer. Quality is the main motivating factor for the consumer to buy the product of FMCG. Introduction of new products in the market to satisfy the consumer is also an importance reason for FMCGs to hold the top in the consumer market. It clears from the study that FMCG acquire a major share in the consumer goods market the manufacture as to provide quality goods at reasonable price. NUNTASAREE SUKAT (2009) in this article A model of male consumer behaviour in buying skin care products in Thai- land The study purpose of the research was evaluated in some depth the phenomena of male consumer behaviour in buying skin care products in Thailand. In order to cope with the research purpose, Fishbein and Ajzen s theory of reasoned action model P a g e 11 Vol.1 Issue.1 July 2018

5 is employed as a theoretical framework and modified by adding the self-image construct. The research objective was find out the To what extent do beliefs in product attribute, self-image, Normative influences, and attitudes toward applying skin care products, affect Thai male consumers purchase intention and purchase behaviour in buying skin care products. The researcher was find out the result or confirm that beliefs, selfimage, normative influences, and attitudes have impacts on purchase intention and purchase behaviour in buying skin care products among Bangkok male consumers. The modified theory of reasoned action is appropriate to explain male consumer behaviour in the purchase of specific cosmetic product in the Thai setting. Sukato and Elsey (2009) examined the phenomena of male consumer behaviour in buying skin care products in Thailand. In order to cope with the research purpose, Fishbein and Ajzen s theory of reasoned action model is employed as a theoretical framework and modified by adding the self-image construct. The results of the study confirm that beliefs, self-image, normative influences, and attitudes have impacts on purchase intention and purchase behaviour in buying skin care products among Bangkok male consumers and therefore, the modified theory of reasoned action is appropriate to explain male consumer behaviour in the purchase of specific cosmetic product in the Thai setting. Chandrasekhar (2012) analyzed the consumer buying behaviour and brand loyalty in rural markets regarding fast moving consumer goods and found that brand loyalty is more in Badangpet and Nadergul region and less in Chintulla in soaps category. In hair oil category, branded products usage is more in Badangpet and Nadergul villages and consumer prefer to purchase local brands in Chintulla village. It is also found that Vatika and Navratan hair oils dominate in Badangpet, Parachute hair oil in Nadergul and Gograda local brand and Dabur in Chintulla. In case of Biscuits category, consumers mostly buy in loose, which are available in nearby shops like Salt biscuits, Osmania biscuits etc. Parle-G and Tiger are mostly used brands in Badangpet. Tea is purchased in loose, which is available in local shops. The popular brands Red Label, Three Roses and Gemini are used in Badangpet village. Further, the study found that coffee consumption is very less or no consumption in Nadergul and Chintulla villages. In case of washing powder, Nirma dominate all the three selected P a g e 12 Vol.1 Issue.1 July 2018

6 sample rural markets regions. In remote area like Chintulla, Nirma sell Rs. 1 sachets. In washing soap category, Rin, 501, Nirma, XXX and Extra Local Brand dominates all the three selected rural markets. It is also concluded that Ponds, Chintol and Santoor face powder dominated the market and Pond s has dominated the market in consumption in Badangpet. Prajapati and Thakor (2012) innovative promotional tools used by toothpaste companies in rural market and its impact on consumer buying behaviour in Gujarat. The study found that rural consumers are more concerned about the quality, brand name of the oral care products purchased by them. Further, it was also found that once the rural consumers found that certain brands are suitable to them, they do not change it easily due to influence of friends or social groups and lack of availability of their usual brands. In toothpaste category, Colgate and Close-up are the most favorite brands. Price, color and availability of the product are more influencing factor when they buy the toothpaste. Rural consumers are generally following the instructions of the retailers for buying the toothpaste and also consider the promotional scheme when buy the toothpaste and the prices off schemes are the most influencing scheme to them. When there are special discount and dentist suggest them to purchase the toothpaste they definitely purchase it. Vani, et al. (2010) consumer behaviour in Bangalore city regarding toothpaste bands and found that consumer awareness of toothpaste is less in Bangalore. Oral care market offers huge potential as penetration and per capita consumption of oral care product is very low in India. Further, the study found brand image, advertising and offer play an important role in purchasing toothpaste, sometimes based on the offer the consumer compare with competitor product and select the best one. Product attribute also analyzed by the consumer for deciding a brand. Switching of one product to other company product is mainly based on advertisement, brand name, packaging availability and price rise. P a g e 13 Vol.1 Issue.1 July 2018

7 ANALYSIS AND INTERPRETATION OF DATA (No. of Respondents = 100) Factors Variable No.of Variable No.of Variable No.of Variable No.of Resp. Resp. Resp. Resp. Gender Male 76 Female Age Below Above years years Edu.Quali. Up-to Other 30 Graduates 43 HSC Quali Occupation Business 26 Pri/Go Emp. 18 Profes. 06 Other.Emp. 50 Income Below Rs Above Level Rs.5000 Rs Family Below 6 Above 6 68 Size Members Members Purchase Place Retail 83 Wholesale Purchase Mode Cash 64 Credit Standard of Living Yes 92 No Purchase of latest brand Yes 45 No KNOW ABOUT FMCG FACTORS CONSIDER MOST ON BUYING Sources No. of Resp. Rank Factors No of Resp. Rank Media 60 1 Brand name 13 2 Friends & Price Relatives 5 Family 06 4 Quality 21 3 Existing users 18 3 Offer/free 17 4 Shopping 04 5 Taste/ Flavor User suggestion 12 6 P a g e 14 Vol.1 Issue.1 July 2018

8 Amount Allot For Personal Care Product Amount Resp Amount Resp Amount Resp Below Rs Rs 250 Rs Above Rs Suggested by the seller Level of Satisfaction Highly Satisfied NSNDS Dis- Highly Dis- No.opinion Satisfied Satisfied satisfied Personal Care Products Preferences of the Respondents Tooth paste Tooth brush Bath soap Shampoo Hair oil Cosmetics Brand Res Res Res Res Res Brand Brand Brand Brand Resp Brand p p p p p Colgate 45 Oral-B 30 Hamam 72 Clinic Fair&Lo 58 Parachute 22 plus v 58 Pepsode Head&Sh VVD Fair 46 Colgate 45 Cinthol nt o. Gold Ever 33 Dabur 04 Pepsode M. Dabur Himalay Pantene nt Sandal Amla a 07 Himalay Himalay Navaratha Power 06 Others 09 a a na 02 Others 18 Others 03 Others 03 Others Aswani Total 100 Total 100 Total 100 Total 100 Others 13 Total 100 Motivational factors Resp Rank Problems facing Resp Rank Quality 20 3 Irregular Supply 07 5 User suggestion 26 2 Duplication 27 2 Brand name 05 5 Defects are not replacing 12 3 Price 05 5 Attraction of competitive 1 40 products Advertisement 34 1 Display not properly 6 6 P a g e 15 Vol.1 Issue.1 July 2018

9 Offer/free samples 04 6 Poor response on complaints 8 4 Taste/ flavour 06 4 Effect of Level of Satisfaction Level of Opinion of Recommend Advertisement Level of opinion Resp Level of opinion Resp Level of opinion Resp Very Effective 19 Highly Satisfied 15 Highly Recommended 20 Effective 60 Satisfied 65 Recommended 56 Neutral 09 Neither satisfied not dis-satisfied 12 Neutral 16 In-effective 02 Dis- Satisfied 03 Not Recommended 03 Highly in- Highly Dis- Highly not effective Satisfied Recommended 03 No-opinion 08 No-opinion 03 No-opinion 02 Chi-square Test: Test No: 1 H0: There is any association between income level and motivational factors. H1: There is no association between income level and motivational factors. Observed Frequency: Income User Brand Motivational Quality Sugg. name Level/ Factor Price Advt. Offer Taste Below Rs. 5, Rs. 5,000 to Rs. 10, Above Rs. 10, Total Expected Frequency: Income Motivational Level/ Factor Below Rs. 5, Rs. 5,000 to Rs. 10, Above Rs. 10, Total P a g e 16 Vol.1 Issue.1 July 2018

10 o Chi-Square Value = o Degree of Freedom: Chi-square n-1-4(x) = Chi-square (16) = Since the table value is at 5% Test No: 2 H0: There is any level of significance. Since the calculated value is greater than the table value. So Ho is accepted (H1 is rejected). association between income level and level of satisfaction. H1: There is no association between income level and level of satisfaction. There is no association between income level and motivational factors. Chi-square Test: Observed Frequency: Level of satisfaction H.S S N D H.D No.Op Below Rs. 5, Rs. 5,000 to Rs. 10, Above Rs. 10, Expected Frequency: Total Level of satisfaction Below Rs. 5, Rs. 5,000 to Rs. 10, Above Rs. 10, Total o Chi-Square Value = o Degree of Freedom: Chi-square n-1-4 (x). Since the calculated value is less than the table value. So Ho is accepted (H1 is rejected). There is no association between income level and level of satisfaction. FINDINGS FROM THIS STUDY 52 % of them belong to monthly income group below Rs.5 thousand, followed by 28 % Belong to monthly income group Rs.5-10 thousand and above Rs10 thousand is 20%.Among The respondents, 48 % of them have Monthly expense below Rs.2000 for FMCG, followed by 34 % have between Rs.2000 to The P a g e 17 Vol.1 Issue.1 July 2018

11 study, 42 % of them Spend below Rs.250 towards personal care Products monthly, Followed by 32 % spend Rs and Above Rs500 stood at 26%. Most of the respondents purchase the FMCG Most of The respondents buy the Pepsodent and close up brand of tooth paste, Colgate brand of tooth brush, Hamam brand of bath soap, Clinic plus brand of shampoo, VVD brand of hair oil and Fair & Lovely brand of cosmetics.. SUGGESTIONS FMCG companies must to concentrate on producing innovative & quality products, which will influence the purchase behavior of the rural consumers. Advertisement is a major role in informing the consumers about the products. FMCG companies can make to differentiate their products from others. Packaging should be made quality and differentiation to avoid adulteration. The various sources of awareness, through media stood at top and advertisement can strengthened to promote the brand loyalty of the products. Customers grievances regarding the product quality, damages and the like should be looked into promptly and quickly. products from retail shop (83%).Majority of the respondents reported that the purchase of FMCG leads to increase their standard of living (92%). While purchasing personal care products, consumers should give more preference to quality and brand aspects than to flavor. Be aware of duplicate and non-branded products marketed by the local manufacturers most on rural areas. CONCLUSION From this study that FMCG zone is growing at a fast due to mass production and usage of the products more from rural consumption. The present market of FMCG is highly competitive, to face the challenges through quality with brand image. Medias are major force to reach the consumers. The future of FMCG is very brighter, by various promotional tools adopted by the companies to retain their market. Every FMCG company meets their valuable consumers and satisfies them through products from different varieties. R & Development Department acts as Heart for the success of every FMCG company, and besides that, the rural consumers also can enjoy their needs with their products. P a g e 18 Vol.1 Issue.1 July 2018

12 References: 1. Indian Journal of Education and Information Management. Vol No: 1, Issue: 11, Nov 2012, ISSN: ABAC Journal Vol. 29, No. 1 (January-April 2009, pp.39-52) - Thailand. 4. IOSR Journal of Business and Management, Vol. 3, Issue 2, pp International Referred Research Journal, Vol. 3, Issue 3(2), pp Journal of Economics and Behavioral Studies, Vol. 1, No. 1, pp. 3. ABAC Journal, Vol. 29, No. 1, pp Thailand. P a g e 19 Vol.1 Issue.1 July 2018