V18i06 07
V18i06 07
This study has been done to find the consumer brand preference of FMCG, and it
attempts to find the level of brand awareness. This study is carried out to understand
consumer brand preference. Sakthi Masalais placed first in the market. Even though the
Sakthi Masala brand is placed one among the top in the choice still there is scope for
improvement. Based on the findings the researchers have given some suggestions to the
company. If the company incorporates ideas, they can improve brand preference, associations
and loyalty.
Keywords: Brand loyalty, Consumer preference, Perceived quality.
1. Introduction
Preferences are the desires by each individual for the consumption of goods and
services that translate in to preferences based on income or wealth for purchases of goods
and services to be combined with the consumer's time to define consumption activities.
Consumption is separated from production, logically, because two different consumers are
involved. In the first case consumption is by the primary individual; in the second case, a
producer might make something that he would not consume himself. Therefore, different
motivations and abilities are involved. The models that make up consumer theory are used
to represent prospectively observable demand patterns for an individual buyer on
the hypothesis of constrained optimization. Prominent variables used to explain the rate at
which the good is purchased (demanded) are the price per unit of that good, prices of related
goods, and wealth of the consumer
Fast Moving Consumer Goods (FMCG) goods are all consumable items (other than
groceries/pulses) that one needs to buy at regular intervals. These are items which are used
daily, and so have a quick rate of consumption, and a high return. FMCG can broadly be
categorized into three segments which are:
1. Household items as soaps, detergents, household accessories, etc,
2. Personal care items as shampoos, toothpaste, shaving products, etc and finally
3. Food and Beverages as snacks, processed foods, tea, coffee, edible oils, soft drinks
etc.
Global leaders in the FMCG segment are Nestlé, ITC, Hindustan Unilever Limited,
Reckitt Benckiser, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General
Mills, Pepsi, Gillette etc.
As per the recent developments in FMCG it is assured that the consumption of the
FMCG products will have a satisfactorily growth with the rising income level of Indian
populace in both the rural and urban areas. Around 200 million people are expected become
the consumer of processed and packaged foods by the year 2010.
The major activities of the food- processing sector are permitted 100% foreign equity
100% NRI and Overseas Corporate Bodies (OCB) investment to meet the rising demand of
the consumers.
Beverland (2001) studied the level of brand awareness within the New Zealand market
for ZESPRI kiwi fruit. The effectiveness of this branding strategy employed by kiwi fruit,
New Zealand was studied. It is indicated that brand awareness could be increased through a
relationship making program me involving targeted marketing and supply chain management.
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.
Vani, et al. (2010) examined consumer behaviour in Bangalore city regarding
toothpaste bands and found that consumer awareness of toothpaste is less in Bangalore city.
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 that 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.
4. Literature review
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 sample
rural markets regions. In remote area like Chintulla, Nirma sell Rs. 1 sachets.
Jain and Sharma (2012) analyzed the brand awareness and customer preferences for
FMCG products in rural market of Garhwal region. The study found that average awareness
of the respondents in the rural market is approximately 75 per cent, 70 per cent, 72 per cent,
64 per cent and 73 per cent in case of shampoo, washing powder, soap, tea, toothpaste
respectively, which infers that people in the rural market have on an average awareness about
most of the products. In the shampoo category, the study found that the respondents give 1st
rank to Pantene and last rank to Chik; in case of washing powder, 1st rank to Surf Excel and
last rank to Nirma; to soap category, 1st rank to Dettol and last rank to Rexona; in case of
Tea, 1st rank to Tata tea and last rank to Maharani tea and in category of toothpaste, 1st rank
to Colgate and last rank to Cibaca which infers that advertising and marketing activities have
major influences in choices of people in rural market. The study further found that among
various factors like quality, price, easy availability, family liking, advertisement, variety,
credit attributes of brand preference; the quality is the first preference in case of brand
choices and rural people give least preference to variety and credit attributes. It is also
concluded that there is a positive impact of media on brand preference of FMCG products
among consumers.
Jayswal and Shah (2012) analyzed the effect of some selected FMCG product‟s
television, advertisements with commonly used negative emotional appeals on cognitive
message rocessing style of Indian house wives. The study revealing different effect of
different advertisement with negative emotional appeals derived that advertising creative
aspect has considered most important and it has been truly said that “what you say is equally
important to how you say.” Through varied hypothesis developed by the researcher, the
findings is negative emotional advertising appeal makes the cognitive response positive,
helps to form positive attitude and this increases the customer intention to buy the brand. The
different advertising themes have difference in their effect on individual perception. Prajapati
and Thakor (2012) examined the competitive and 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.
Ranu and Rishu (2012) analyzed the scope of Ingredient branding in creating
sustainable differentiation advantage for FMCG companies. The results of the study revealed
that careful planning must be done before entering into a relationship in order to maximize
the benefits of any ingredient branding strategy. Along with the costs involved in forming
and maintaining the alliance, and the opportunity cost involved for the partnering firm, the
consumer‟s quality sensitivity and their ability to evaluate quality must also be considered.
Firms considering an ingredient branding strategy must also evaluate the customer‟s
perception toward each brand prior to the alliance. The perceived fit of the products as well
as the brands must be understood, and the level of customer familiarity with each brand must
be gauged. This will help marketers in developing a successful Ingredient branding strategy,
which builds on the strengths of the partnering brands and generates additional value for the
consumer.
Mishra, et al. (2012) examined the major dimensions of consumers‟ perception about
the benefits they derive from different types of sales promotion schemes in durable goods and
to build a framework showing the valid relationships among all types of multiple consumer
benefits of sales promotion in consumer durables. This exploratory study is mainly based on
field survey carried out in India. The findings indicate that consumers perceive factors like
savings, higher product quality, shopping convenience categorized as utilitarian benefits and
value expression, entertainment, exploration categorized as hedonic benefits as primary
reasons for taking advantage of various sales promotion schemes.
Vaishnani (2012) examined and measured brand equity perception with reference to
sales promotion schemes for selected FMCG products and it is concluded that there is no
significant difference between of brand equity perception among gender as one of the
demographic variables. Apart from it, it is concluded that there is significant difference
between brand equity perceptions among various employment status. Adding to it, it is clear
that self - employed consumers compare to not employed.
The identity dimensions reflection (i.e., image of the target group) and self-image (i.e.,
how the brand makes consumers feel) depict the receiver. The dimensions culture (i.e.,
values) and relationship (i.e., mode of conduct) form a bridge between the sender and the
receiver (Sritharan R, and Samudhrarajakumar C. 2008)
Tamizh jyothi and Samudhra Rajkumar (2005) concluded in their study on the
effectiveness of celebrity advertisements, wherein they have considered product categories
and brands are the important factors that influence the effectiveness of celebrity
advertisements.
Tamizh jyothi and Samudhra Rajkumar (2005) conducted a study on the effectiveness
of celebrity advertisements, and identified that the products and brands are the key factors in
the determination of the effectiveness of celebrity advertisements.
Kailasam Tamizhjyothi and Samudhra Rajakumar (2011) concluded in their study on
the role of profession in the prediction of effectiveness of multiple celebrity endorsement, and
found that attitude towards celebrity and attitude towards brands will be enhanced when it is
endorsed by multiple celebrities. However, profession of the celebrity is a major factor in the
prediction of multiple celebrity endorsement effectiveness.
Kailasam Tamizhjyothi and Samudhra Rajakumar (2011) found that attitude towards
celebrity and attitude towards brands have significant influence on the purchase of multiple
celebrity endorsed products or brands. Profession of the celebrity is also considered while
predicting the effectiveness of multiple celebrity endorsement.
5. Research Design
Descriptive research design is used in this study. This study includes both Primary
and Secondary data.The primary data are collected from the public through a well-structured
questionnaire. The secondary data are collected from internal and external records like
Websites, Journals, Books, and so on. The sample size of this study is 425.The sampling
method used in this research isQuota Sampling.
loyal of Sakthi Masala.The value ‘4' shows that the respondents agree with the opinion about
the choice of Sakthi Masala.The value ‘4' shows that the respondents agree with the opinion
about the good reputation of Sakthi Masala.The value ‘4' shows that the respondents agree
with the opinion about the trust of Sakthi Masala.The value ‘4' shows that the respondents
agree with the opinion about the attachment of Sakthi Masala.The value ‘4' shows that the
respondents agree with the opinion about the induce of Sakthi Masala.The value ‘3' shows
that the respondents neither agree – nor either agree with the opinion about the recommend of
Sakthi Masala.The value ‘4' shows that the respondents agree with the opinion about the
recommend of Sakthi Masala.The value ‘2' shows that the respondents disagree with the
opinion about the bad experience with this brand of Sakthi Masala.The value ‘4' shows that
the respondents agree with the opinion about the satisfied of Sakthi Masala.
8. Conclusion
This study is carried out to understand consumer brand preference towards Sakthi
Masala and it is placed first in the market. Even though the Sakthi Masalabrand is placed one
among the top in the choice still there are number of scopes for improvement. Based on the
findings, the researchers have given some suggestions to the company. If the company
incorporates suggestions, they can improve brand preference, associations and loyalty.
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