Why understanding of consumer behaviour is required for FMCG company?

The consumer behaviour plays an important role in marketing of fast moving consumer
goods. ... The fast moving consumer goods (FMCG) sector contributes a lot to the growth of
India's GDP. Therefore it is neccesary to identify the changes in consumer buying behaviour
towards FMCG products

What are the factors that influence the FMCG consumer buying behavior?
Besides BI, dependability, product characteristics, as well as social and economic aspects, have
a major influence on purchasing attitude. Brand attributes, brand values, and brand
personality emerged as an important factor for selection of FMCG brands.

What is the study of consumer behavior?

What are the 4 types of consumer behavior?

A consumer is consuming various goods and services as per his/her requirements and
needs. Now, a customer is getting many alternatives with superior and quality based goods
and services. The various choices and needs of customers are the big challenges to a
marketer in the present competitive market among competitors. Thus, the marketers should
offer the goods and services in such manner to cater the various needs and requirements of
customers. The marketers must study the behaviour of consumer before producing the …

The consumer behaviour plays an important role in marketing of fast moving consumer goods.This
behaviour is effected by various factors. In the present era of globalization needs and wants of
consumers changes with time.The fast moving consumer goods (FMCG) sector contributes a lot to the
growth of India’s GDP. Therefore it is necessary to identify the changes in consumer buying behaviour
towards FMCG products.

objectives of the study

1. To understand the concept of FMCG products.

Fast Moving consumer goods are those goods that are consumed every day by the average consumer
and are replaced or fully used up over a short period of days, weeks, or months, and within one year.
The Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG), is products
that have a quick turnover and relatively low cost. 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. Fast moving consumer goods have a short shelf life, either as a result of high consumer
demand or because the product deteriorates rapidly. Some Fast moving consumer goods – such as
meat, fruits and vegetables, dairy products and baked goods – are highly perishable. Other goods such
as alcohol, toiletries, pre-packaged foods, soft drinks and cleaning products have high turnover rates.
Fast moving consumer goods are products that have a quick shelf turnover, at relatively low cost and
don't require a lot of thought, time and financial investment to purchase. The margin of profit on every
individual Fast moving consumer goods product is less. However the huge number of goods sold is what
makes the difference. Hence profit in Fast moving consumer goods always translates to number of
goods sold. Fast Moving Consumer Goods is a classification that refers to a wide range of frequently
purchased consumer products. Examples of FMCG generally include a wide range of frequently
purchased consumer products such as toiletries, soap, cosmetics, teeth cleaning products, shaving
products and detergents, as well as other nondurables such as glassware, bulbs, batteries, paper
products and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged
food products and drinks, although these are often categorized separately. Three of the largest and best
known examples of Fast Moving Consumer Goods companies are Nestlé, Unilever and Procter &
Gamble. Examples of FMCGs are soft drinks, tissue paper, and chocolate bars. Examples of FMCG brands
are Coca-Cola, Kleenex, Pepsi and Believe Toiletries, Beauty Products, Home Cosmetics, Packaged Food,
Soft Drinks Household accessories are some of the best known examples of Fast Moving Consumer
Goods A subset of FMCGs are Fast Moving Consumer Electronics which contain innovative electronic
products such as mobile phones, MP3 players, digital cameras, GPS Systems, cell phones and Laptops
which are replaced more frequently than other electronic products mainly due to technology changes.
White goods in FMCG refer to large household electronic items such as refrigerators. Smaller items, TV
sets, stereo systems etc. are sometimes termed Brown goods. Unlike other economy sectors, FMCG
share float in a steady manner irrespective of global market dip, because they generally satisfy rather
fundamental - as opposed to luxurious – needs.

IV: Growth of FMCG in India

The Indian FMCG sector with a market size of US$14.8 billion is the fourth largest sector in the economy.
The FMCG market is set to double from USD 14.7 billion in 2011-12 to USD 30 billion in 2013. FMCG
sector will witness more than 60 per cent growth in rural and semi-urban India by 2014. Indian
consumer goods market is expected to reach $400 billion by 2014.Hair care, household care, male
grooming, female hygiene, and the chocolates and confectionery categories are estimated to be the
fastest growing segments. At present, urban India accounts for 66% of total FMCG consumption, with
rural India accounting for the remaining 34%. However, rural India accounts for more than 40%
consumption in major FMCG categories such as personal care, fabric care, and hot beverages. In urban
areas, home and personal care category, including skin care, household care and feminine hygiene, will
keep growing at relatively attractive rates. Within the foods segment, it is estimated that processed
foods, bakery, and dairy are long-term growth categories in both rural and urban areas. The growing
incline of rural and semi-urban folks for FMCG products will be mainly responsible for the growth in this
sector, as manufacturers will have to deepen their concentration for higher sales volumes. Major Players
in this sector include Hindustan Unilever Ltd., ITC (Indian Tobacco Company), and Nestlé India, GCMMF
(AMUL), Dabur India,

VI: Factors affecting Consumer Buying Behaviou

All of us are consumers. We consume things of daily use; we also consume and buy these products
according to our needs, preferences and comfort and luxury in small quantities or in bulk. For all this,
exchange is required. This exchange is usually between the seller and the buyer. It can also be between
consumers. Consumer behaviour can be defined as the decision-making process and physical activity
involved in acquiring, evaluating, using and disposing of goods and services. This definition clearly brings
out that it is not just the buying of goods/services that receives attention in consumer behaviour but,
the process starts much before the goods have been acquired or bought. A process of buying starts in
the minds of the consumer, which leads to the finding of alternatives between products that can be
acquired with their relative advantages and disadvantages.

Marketing Strategy and Consumer Behaviour

(i) Marketing Analysis (a) Consumer (b) Company (c) Competition (d) Condition (ii) Marketing
Segmentation (e) Identify product related needs (f) Group customers with similar need sets (g) Describe
each group (h) Select target market (iii) Marketing Strategy (I) Product (j) Price (k) Distribution (l)
Communication (m) Service (iv) Consumer Decision Process (n) Problem recognition (o) Information
search—internal, external (p) Alternative evaluation (q) Purchase (r) Use (s) Evaluation (v) Outcomes (t)
Customer satisfaction (u) Sales (v) Product/Brand imag

A lot of work has been done on various aspects of rural marketing. Hence, it was felt necessary to make
a humble attempt to study the importance of Brand in consumer Buying Behavior of FMCG goods in
rural markets.

objectives

To study on brand loyalty of various brands in rural markets 1.1.2 To study does the brand play a role in
the purchase behavior of rural customers 1.1.3 To study on which categories/products does brand play a
role 1.1.4 To identify the presence and the importance of local brands

What are the factors that influence the FMCG consumer buying behaviour?
promotion, lifestyle, trust, value, and product. It is concluded that from
each factors product education, packaging, availability, affordability, and
quality of products are the most important variables for customers while
purchasing FMCG

What are the factors that influence the FMCG consumer buying behaviour?
promotion, lifestyle, trust, value, and product. It is concluded that from each factors product
education, packaging, availability, affordability, and quality of products are the most important
variables for customers while purchasing FMCG