INTRODUCTION

1.1 INTRODUCTION TO THE AREA OF STUDY

Marketing depends heavily on an effective communication flow between the company and
the consumer. Manufacturing a product and making it available on the market is only a part
of the company’s job. It is equally important, or perhaps ore important, to make it known to
the consumer that the product is available in the market. In a competitive market, where
several firms are striving to win over consumers, it is not enough if just the availability is
made know. It is essential to propagate the distinctive features of the product. The process
does not end here either. The firm should also get feedback on how the consumers accept its
products and interpret its messages.

Traditionally, marketing men have been of the view that the ‘promotion mix’ consisting of
personal selling, advertising, sales promotion and publicity, is the only instrument available
for communicating with the consumer. In the past, marketing literature too adopted the same
approach and described the promotion mix as the sole instrument of marketing
communications. This approach has however, undergone significant changes over the years.
Today, besides promotion mix, other entities like product, price and the channel are also
viewed as components of marketing communications. In other words, all the four Ps of
marketing are considered as components of the communications mix of the firm. The firm
attempts to communicate with the consumer through quality products, attractive packages,
written messages, pictures, symbols, attractive showrooms and efficient salesmen. When the
various stimuli emanating form these sources are received and interpreted by the consumer,
marketing communication takes place.

Men, women and children all over the world are today influenced to some degree by
advertising and other forms of promotion. Organizations in both private and public sectors
have learned that the ability to communicate effectively and efficiently with their target
audiences is critical for their success in any business. Advertising and other types of
promotional messages are used to sell products ad services as well as to promote social

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causes, market political candidates, and deal with societal problems like alcohol and drug
abuse.

Marketing communications mix consists of “the specific blend of advertising, sales

promotion, public relations, personal selling and direct marketing tools that a company uses
to pursue its advertising and marketing objectives. Communication is an important function
in marketing, and constitutes one of the 4Ps of the marketing mix, i.e., Promotion, the other
three being Product, Price, and Place. Marketing communications are persuasive in nature,
aimed at influencing the consumer behavior in favor of a company’s product offerings. The
marketing success of any product, whether it is tooth paste, TV, or car, depends, to a large
extent, on appropriate use of the promotion mix by the companies.

The components of marketing communications mix are as follows

1. Advertising
Advertising includes any paid form of non- personal presentation and promotion of
ideas, goods or services by an identified sponsor. It includes the use of such media as
newspapers, magazines, outdoor posters, banners, hoardings, direct mail, radio, TV,
the internet, etc.

2. Sales promotion
Short- term incentives to promote sales like displays, samples, exhibitions,
demonstrations, coupons, contests, etc., constitute sales promotion.

3. Public Relations
Public relations include building good relations with the public by obtaining
favorable publicity, building a good corporate image, and handling or avoiding
unfavorable publicity, rumors and events.

4. Personal Selling
Personal selling includes direct personal presentation by company sales force for
sales and building customer relationships.

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 5. Direct Marketing
Direct marketing involves direct communication with selected target customers on a
one-to-one basis to obtain an immediate response and cultivate lasting customer
relationships, using telephone, direct mail, fax, the internet, etc.

6. Publicity
Publicity includes non- personal promotion of demand for products by obtaining
publicity through news in media like TV, radio, newspapers, and magazines. Unlike
advertising, this form of promotion is not paid for by the sponsor.

Advertising
The term advertising originates from the Latin ‘adverto.’ Which means to turn round.
Through advertisement, the advertiser intends to spread his ideas about his products/
offerings among his customers and prospects.

How advertising persuades the buyer?

Should be of interest to the audience

Advertisement should capture the attention of the target audience. To achieve this, it has to
provide the audience with information that is of interest to them. Some people like
information that is communicated through stories, others like figures and data; there may be
another category that may listen to information that is couched in real experience situations.
These complexities have to be tackled in developing the advertisement. In any case, the
advertising message should interest the audience.

The audience should interpret the message in the intended manner

It is essential that the audience see the advertisement and interpret in a way favorable to the
advertiser. The same advertising message under a given setting can be perceived and
interpreted by different people in different ways. An advertiser or communicator has to
ensure that his message is interpreted in the intended manner, in a favorable to his
products/offerings.

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The advertisement should influence the audience
It is not enough if the audience listens to the advertisement and interprets it the way the
advertiser or communicator expects it to be interpreted. It should also appeal to the audience
and influence their attitude, thought process and purchase behavior in favor of the advertised
offer.

Sales Promotion
Sales promotion consists of short term incentives to encourage purchase or sales of a
product or service. It adds extra value to the product and hence prompts the dealer/
consumer to buy the product.

Sales promotion v/s Advertising

Sales promotion differs from advertising on the following counts:
 Advertising is mostly an indirect and subtle approach towards persuading consumers
to try a product, sales promotion is a direct and almost open inducement to
consumers to immediately buy the product.

 While advertising normally has long-term objectives like positioning, building brand
awareness, or consumer loyalty, or developing new markets for the brand, sales
promotion performs an immediate task of increasing current sales.

 Advertising helps sales by adding some durable and long-term value to the product,
sales promotion aids selling by temporarily changing the existing price-value
equation of the product in favor of the consumer.

Tools and techniques of Sales Promotion

 Demonstrations
 Trade fairs and exhibitions
 Coupons, premiums, Price-offs
 Free samples
 Contests
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  Joint promotion

Consumer buying behavior

Buying Behavior is the decision processes and acts of people involved in buying and using
products.

A firm needs to analyze buying behavior for:

 Buyers’ reactions to a firms marketing strategy has a great impact on the firm’s
success.
 The marketing concept stresses that a firm should create a Marketing Mix (MM) that
satisfies (gives utility to) customers, therefore need to analyze the what, where, when
and how consumers buy.
 Marketers can better predict how consumers will respond to marketing strategies.

Stages of the Consumer Buying Process

The process of consumer buying involves 6 stages. All consumer decisions do not always
include all 6 stages

The 6 stages are:

1. Problem Recognition (awareness of need)

It is the difference between the desired state and the actual condition. It represents
deficit in assortment of products.

2. Information search

This can be of two types external or internal as follows

o Internal search on the basis of your memory.

o External search if you need more information. Friends and relatives (word of
mouth), public sources etc.

3. Evaluation of Alternatives

Need to establish criteria for evaluation, features the buyer wants or does not want.

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 4. Purchase decision

Choose buying alternative, includes product, package, store, method of purchase etc.

5. Purchase

May differ from decision, time lapse between 4 & 5, product availability.

6. Post-Purchase Evaluation

Outcome can be Satisfaction or Dissatisfaction. Cognitive Dissonance, have you

made the right decision. This can be reduced by warranties, after sales
communication

Categories that Effect the Consumer Buying Decision Process

A consumer, making a purchase decision will be affected by the following three factors:

1. Personal

These are the reasons which are unique to a particular person. Some of them are

 Demographic Factors
 Sex
 Race
 Age

2. Psychological factors

Psychological factors include

 Motives

A motive is an internal energizing force that orients a person's activities

toward satisfying a need or achieving a goal.

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  Perception

Perception is the process of selecting, organizing and interpreting

information inputs to produce meaning.

 Attitudes

Individual learns attitudes through experience and interaction with other

people. Attitudes and attitude change are influenced by consumer’s
personality and lifestyle.

 Personality

All the internal traits and behaviors that make a person unique, uniqueness
arrives from a person's heredity and personal experience. Examples include:

o Work holism
o Compulsiveness
o Self confidence
o Friendliness

3. Social Factors

Consumer wants, learning, motives etc. are influenced by opinion leaders, person's
family, reference groups, social class and culture.

 Opinion leaders

Marketers try to attract opinion leaders...they actually use (pay) spokespeople

to market their products. Michael Jordon (Nike, McDonalds, Gatorade etc.)

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 Roles and Family Influences

Individuals role are continuing to change therefore marketers must continue

to update information.

 Culture and Sub-culture--

Culture refers to the set of values, ideas, and attitudes that are accepted by a
homogenous group of people and transmitted to the next generation. Culture
also determines what is acceptable with product advertising.

Culture can be divided into subcultures:

o Geographic regions

o Human characteristics such as age and ethnic background.

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 DESIGN OF THE STUDY

2.1 OBJECTIVE OF THE STUDY

1. To study the impact of advertising and sales promotion in consumer’s buying behavior.

2. To find out the factors affecting the consumers buying behavior.

2.2 SCOPE OF THE STUDY

The project was focused on consumers of all age groups of Fast Moving Consumer
Goods(Soap, Shampoo, toothpastes). The study focuses on studying the impact of advertising
and sales promotion in consumer’s buying behavior.

2.3 RESEARCH METHODOLGY

DATA SOURCES

Primary Data Sources

Data is been collected through questionnaire.

Secondary data sources

Data is been collected from the web search.

2.4 SAMPLING PALN

I) Sampling Element : Consumers of FMCG

II) Target Population : Customers of Value for money Departmental Store

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 III) Sample Size : 50

IV) Sampling Method : Non-Probability (Convenience Sampling)

2.5 LIMITATIONS OF THE STUDY

Data collected for the study comes from the survey collected through a questionnaire, thus
suffers from sampling and non- sampling errors. Sampling error limits the reliability of any
generalization while non-sampling error adversely affects the quality of the data collected
which in turn affects analysis and findings of the study. Sources of non-sampling error may
be:

 The study is limited to selected target segment in the market.

 The study is confined to a certain area of Bangalore due to time constraints and does
not necessarily shows a pattern applicable to all the places.
 The sample size may not be adequate for the study.

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 INDUSTRY PROFILE

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.

India is one of the largest emerging markets, with a population of over one billion. India is
one of the largest economies in the world in terms of purchasing power and has a strong
middle class base of 300 million.
Rural and urban potential
Rural- urban profile

Urban Rural

Population 2001- 02
53 135
(mn household)
Population 2009-10 (mn
household) 69 153

% Distribution (2001-02)
28 72

Market (Towns/Villages)
3,768 627,000

Universe of Outlets (mn) 1 3.3

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

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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.

India - a large consumer goods spender

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.
Even on an international scale, total consumer expenditure on food in India at US$ 120
billion is amongst the largest in the emerging markets, next only to China.

Change in the Indian consumer profile

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.

Demand-supply gap

Currently, only a small percentage of the raw materials in India are processed into value
added products even as the demand for processed and convenience food is on the rise. This
demand supply gap indicates an untapped opportunity in areas such as packaged form,
convenience food and drinks, milk products etc.
In the personal care segment, the low penetration rate in both the rural and urban areas
indicates a market potential.

FMCG Category and products

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 Category Products

Fabric wash (laundry soaps and synthetic detergents);

House care products (dish/utensil cleaners, floor cleaners, toilet
cleaners, air fresheners, insecticides and mosquito repellents,
Household care metal polish and furniture polish).

Health beverages; soft drinks; staples/cereals;

Bakery products (biscuits, bread, cakes); snack food;
chocolates; ice cream; tea; coffee; soft drinks;
Processed fruits, vegetables; dairy products; bottled water;
branded flour; branded rice; branded sugar; juices etc.

Personal Care Oral care, hair care, skin care, personal wash (soaps,
shampoos, toothpastes); cosmetics and toiletries;
deodorants; perfumes; feminine hygiene; paper products.

INDIA COMPETITIVENESS AND COMPARISON WITH THE WORLD

MARKETS

Materials availability

India has a diverse agro-climatic condition due to which there exists a wide-ranging and
large raw material base suitable for food processing industries. India is the largest producer
of livestock, milk, sugarcane, coconut, spices and cashew and is the second largest producer
of rice, wheat and fruits & vegetables.

India also has an ample supply of caustic soda and soda ash, the raw materials in the
production of soaps and detergents – India produced 1.6 million tonnes of caustic soda in
2003-04. Tata Chemicals, one of the largest producers of synthetic soda ash in the world is
located in India. The availability of these raw materials gives India the locational advantage.
Apart from the advantage in terms of ample raw material availability, existence of low-cost
labor force also works in favor of India. Labor cost in India is amongst the lowest in Asian

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countries. Easy raw material availability and low labor costs have resulted in a lower cost of
production. Many multi-nationals have set up large low cost production bases in India to
outsource for domestic as well as export markets.

Presence across value chain

Indian firms also have a presence across the entire value chain of the FMCG industry from
supply of raw material to final processed and packaged goods, both in the personal care
products and in the food processing sector. For instance, Indian firm Amul's product
portfolio includes supply of milk as well as the supply of processed dairy products like
cheese and butter. This makes the firms located in India more cost competitive.

TRENDS AND PLAYERS

The structure
The Indian FMCG sector is the fourth largest sector in the economy and creates employment
for three million people in downstream activities. Within the FMCG sector, the Indian food
processing industry represented 6.3 per cent of GDP and accounted for 13 per cent of the
country's exports in 2003-04.
A distinct feature of the FMCG industry is the presence of most global players through their
subsidiaries (HLL, P&G, Nestle), which ensures new product launches in the Indian market
from the parent's portfolio.

Penetration
Rural - urban penetration
Penetration level in most product categories like jams, toothpaste, skin care, hair wash etc in
India is low.
The contrast is particularly striking between the rural and urban segments - the average
consumption by rural households is much lower than their urban counterparts. Low
penetration indicates the existence of unsaturated markets, which are likely to expand as the
income levels rise. This provides an excellent opportunity for the industry players in the
form of a vastly untapped market.

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 Moreover, per capita consumption in most of the FMCG categories (including the high
penetration categories) in India is low as compared to both the developed markets and other
emerging economies. A rise in per capita consumption, with improvement in incomes and
affordability and change in tastes and preferences, is further expected to boost FMCG
demand. Growth is also likely to come from consumer "upgrading", especially in the
matured product categories.

Most Indian FMCG companies focus on urban markets for value and rural markets for
volumes. The total market has expanded from US$ 17.6 billion in 1992-93 to US$ 22 billion
in 1998-99 at current prices. Rural demand constituted around 52.5 per cent of the total
demand in 1998-99. Hence, rural marketing has become a critical factor in boosting bottom
lines. As a result, most companies' have offered low price products in convenient packaging.
These contribute the majority of the sales volume. In comparison, the urban elite consume a
proportionately higher value of FMCGs, but not volume.

Consumer-class boom

Demand for FMCG products is set to boom by almost 60 per cent by 2007 and more than
100 per cent by 2015. This will be driven by the rise in share of middle class (defined as the
climbers and consuming class) from 67 per cent in 2003 to 88 per cent in 2015. The boom in
various consumer categories, further, indicates a latent demand for various product
segments. For example, the upper end of very rich and a part of the consuming class indicate
a small but rapidly growing segment for branded products. The middle segment, on the
other hand, indicates a large market for the mass end products.

The BRICs report indicates that India's per capita disposable income, currently at US$ 556
per annum, will rise to US$ 1150 by 2015 - another FMCG demand driver. Spurt in the
industrial and services sector growth is also likely to boost the urban consumption demand.

DATA ANALYSIS/ FINDINGS

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4.1 AGE OF RESPONDENTS

Table – 4.1

Sl. no Age Frequency Percentage

1 Below 20 12 12%
2 20- 30 36 36%
3 30- 40 40 40%
4 40- 50 10 10%
5 Above 50 2 2%
Total 100 100%

The Graphical representation of respondent’s age is as follows

45%
40%
40% 36%
35%
30%
25%
20%
15% 12%
10%
10%
5% 2%
0%
Below 20 20- 30 30- 40 40- 50 Above 50

Figure – 4.1

Interpretation and analysis

The graph shows that 40% respondents (majority) are within the age group of 30- 40 years.
Only 2% respondents are in the age group of above 50 years.

4.2 GENDER OF RESPONDENTS

Table – 4.2

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 Sl. no Gender Frequency Percentage
1 Male 19 38%
2 Female 31 62%
Total 50 100%

The Graphical representation of respondent’s gender is as follows

38%

Male
Female

62%

Figure- 4.2

Interpretation and analysis

The graph shows that 62% (majority) of respondents are female and 38% of respondents are
male.

4.3 OCCUPATION OF RESPONDENTS

Table – 4.3

Sl. no Occupation Frequency Percentage

1 Student 12 24%

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 2 Service 15 30%
3 Business 15 30%
4 Other 8 16%
Total 50 100%

The Graphical representation of respondent’s occupation is as follows

35%
30% 30%
30%

25% 24%

20%
16%
15%

10%

5%

0%
Student Service Business Other

Figure- 4.3

Interpretation and analysis

The graph shows that 30% of respondents are in service and business and 16% are others.

4.4 FACTORS INFLUENCING PURCHASE DECISION

a. Soaps

EXTREMELY VERY SOMEWHAT NOT VERY NOT AT ALL TOTAL

FACTORS IMPORTANT IMPORTANT IMPORTANT IMPORTANT IMPORTANT
a) Consistently 100
Good Quality

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b) Brand Image 100
c) Easy 100
Availability
d) Affordable 100
Price
e) Attractive 12 8 100
Sales
Promotion
f) Advertiseme 15 16 100
nt
100
TOTAL

Table – 4.4

The Graphical representation

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Interpretation and analysis

a. Shampoos

Table – 4.5

EXTREMELY VERY SOMEWHAT NOT VERY NOT AT ALL TOTAL

FACTORS IMPORTANT IMPORTANT IMPORTANT IMPORTANT IMPORTANT
a) Consistentl
y Good
Quality
b) Brand
Image
c) Easy
Availability
d) Affordable
Price

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 e) Attractive 6 10 16
Sales
Promotion
f) Advertisem 13 20 33
ent
100
TOTAL

The Graphical representation

Interpretation and analysis

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a. Toothpastes

Table – 4.4

EXTREMELY VERY SOMEWHAT NOT VERY NOT AT ALL TOTAL

FACTORS IMPORTANT IMPORTANT IMPORTANT IMPORTANT IMPORTANT
a) Consistentl
y Good
Quality
b) Brand
Image
c) Easy
Availability
d) Affordable
Price
e) Attractive 9 6 15
Sales
Promotion
f) Advertisem 18 17 35
ent

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 100
TOTAL

The Graphical representation

Interpretation and analysis

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Number of respondents being influenced by advertising for buying decision making

Product category # of Respondents Average Ad + S.P Percentage

Soaps 31
Shampoos 33
33 50 66%
Toothpastes 35

Number of respondents being influenced by sales promotion for buying decision making

Product category # of Respondents Average Ad + S.P Percentage

Soaps 20
Shampoos 16
17 50 34%
Toothpastes 15

Total Number Of Respondents Being Influenced By Advertising And Sales Promotions

Advertising: 33

Sales promotions: 17

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Total: 50

The Graphical representation of the influences of Advertising and sales promotion in

purchase decision is as follows

34%

Advertising
Sales Promotion

66%

Figure- 4.4

Interpretation and analysis

The graph shows that 66% of respondent’s buying behavior is influenced by advertising and
34% respondents by promotion.

The result shows that advertisements play an important role in buying behavior of the
consumers.

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4.5 FACTORS INFLUENCING MOST IN VARIOUS AGE GROUPS
COMPARATIVELY ( ADVERTISEMENT v/s SALES PROMOTION)

Table – 4.6

Sales
Advertising
promotion
Sl. no Age Percentage Percentage Total
(33)
(17)
1 Below 20 5 83% 1 17% 100%
2 20- 30 13 72% 5 28% 100%
3 30- 40 12 60% 8 40% 100%
4 40- 50 3 60% 2 40% 100%
5 Over 50 0 0% 1 100% 100%

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The graphical representation of factors influencing various age groups is as follows

120%

100%
100%

83%
80%
72%

60% 60%
60% advertising
sales promotion
40% 40%
40%
28%

20% 17%

0%
0%
Below 20 20- 30 30- 40 40- 50 Over 50

Figure- 4.5

Interpretation and analysis

83% of respondents of below 20 age group are influenced by advertisements and 17% of
them by sales promotion, 72% of 20- 30 age group are influenced by advertisements and
28% of them by sales promotion, 60% of 30- 40 age group are influenced by advertisements
and 40% of them by sales promotion, 60% of 40- 50 age group are influenced by

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 advertisements and 40% of them by sales promotion, 100% of age group of over 50 are
completely influenced by sales promotion.

4.6 BEST MEDIUM OF ADVERTISING

Table – 4.6

Sl. no Attributes Frequency Percentage

1 Television 20 61%
2 News paper 7 21%
3 Hoardings 5 15%
4 Pamphlets 1 3%
5 Others 0 0%
Total 33 100%

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The Graphical representation of the best medium of advertising is as follows

70%

60%

50%

40%

30%

20%

10%

0%
Television News paper Hoardings Pamphlets Others

Figure 4.6

Interpretation and analysis

The graph shows that 61% of respondents says television is the best medium of advertising,
21% says newspaper, 15% says hoardings and 3% pamphlets.

The result shows that television is the best means to attract the customers.

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4.7 ORDER OF PREFERANCE OF SALES PROMOTIONAL ACTIVITIES

Table – 4.7

Sl. no Attributes Frequency Percentage

1 Coupons 3 18%
2 Discounts 12 70%
3 Contests 1 6%
Point of purchase
4 1 6%
displays
Total 17 100%

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The Graphical representation of the best sales promotional activity is as follows

80%
70%
70%

60%

50%

40%

30%

20% 18%

10% 6% 6%

0%
Coupons Discounts Contests Point of purchase Displays

Figure 4.7

Interpretation and analysis

The graph shows that 70% of respondents take advantage of discounts, 18% take advantage of
coupons, 6% each for contests and point of purchase displays.

The result shows that most customers are pulled by discounts.

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4.8 PURCHASE OF PRODUCT PURELY INFLUENCED BY ADVERTISING

a. Frequency of purchase

Table – 4.8

Sl .no Attributes Frequency Percentage

1 Yes 25 76%
2 No 8 24%
Total 33 100%

b. Products purchased purely based on advertisement

Product category

Soaps
Shampoos
Toothpastes

c. Frequency of occurrence of post purchase dissonance

Sl .no Attributes Frequency Percentage

1 Yes
2 No
Total 33 100%

The Graphical representation of Purchase being purely influenced by advertising

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 24%

Yes
No

76%

Figure- 4.8

Interpretation and analysis

The graph shows that 76% of respondents being purely influenced by advertising have bought
products and 24% by other factors.

It signifies that most no. of customers though are influenced by advertising, there are other
factors which also influences purchase decision.

4.9 PURCHASE OF PRODUCT PURELY INFLUENCED BY SALES PROMOTION

a. Frequency of purchase

Table – 4.9

Sl .no Attributes Frequency Percentage

1 Yes 15 88%
2 No 2 12%
Total 17 100%

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 b. Products purchased purely based on sales promotion

Product category

Soaps
Shampoos
Toothpastes

c. Frequency of occurrence of post purchase dissonance

Sl .no Attributes Frequency Percentage

1 Yes
2 No
Total 17 100%

The Graphical representation of Purchase being purely influenced by sales promotion

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 12%

Yes
No

88%

Figure- 4.9

Interpretation and analysis

89% of respondents say that the attractive sales promotion made them to purchase and 11%
are influenced by others.

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4.10 PERSON WHO HELPS IN PURCHASE DECISION

Table – 4.10

Sl .no Attributes Frequency Percentage

1 Self decision 16 16%
2 Friends 30 30%
3 Family 44 44%
4 Others 10 10%
Total 100 100%

The Graphical representation of Person who helps in purchase decision is as follows

50%
45% 44%

40%
35%
30%
30%
25%
20% 16%
15%
10%
10%
5%
0%
Self decision Friends Family Others

Figure- 4.10

Interpretation and analysis

44% of respondents say that family assists them in making a purchase decision, 30% of
respondents say that friends assists them, 16% take self decisions and 10% others.

It signifies that family contributes majorly to one’s purchase decision.

4.11 SCHEDULE PURCHASES TO TAKE ADVANTAGE OF SEASONAL DISCOUNTS

Table – 4.11

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 Sl .no Attributes Frequency Percentage
1 Yes 68 68%
2 No 32 32%
Total 100 100%

The Graphical representation of whether respondents schedule their purchases

32%

Yes
No

68%

Figure- 4.11

Interpretation and analysis

68% of respondents schedule their purchases to grab seasonal discounts and 32% doesn’t
wait for seasonal discounts.

Result shows that seasonality plays a greater role in buying decision.

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 CONCLUSION

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.

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1. During the study it has been found that the companies are successful in using
advertisements as a mode of communication to influence the consumers purchase
decision.
2. Influence of advertisements/ sales promotion varies as per the age group. Youth’s
purchase decision are more influenced by advertisements whereas promotion, have
little more impact on the older people.
3. Television holds major share in the medium of advertising as most people responded
that it’s the best medium of advertising.
4. When it comes to influencing the customer by sales promotion, discount is one
which has an impact on the buying decisions of the consumer.
5. The study indicates the family plays a major role in directing one’s purchase
decision as most of the respondents were women, it also signifies that women are
more driven by their family than anything else. And it was also seen that there were
few respondents who make their own purchase decisions.
6. It was surprisingly found that most of the people plan their purchases as per the
seasonal discounts given from time to time.
7. Generally it was found that 66% of the respondents have influenced by advertising
and 34% of the respondents were influenced by sales promotion so, to conclude we
find that advertising plays a highly pivoted role in influencing consumer buying
behavior drastically for the majority of the Fast Moving Consumer Goods.

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