CASIRJ Volume 10 Issue 12 [Year - 2019] ISSN 2319 – 9202

A Study on Consumer Behaviour towards Fast Moving Consumer Goods

M AYANCI SHINY Dr. R SHOBA RANI

(Reg. No 19123101012005) Assistant professor

Research Scholar Head, Department of Commerce,
Nanjil Catholic College of Nanjil Catholic College of
Arts and Science, Arts and Science,
Kaliyakkavilai, Kaliyakkavilai,
Tamil Nadu, India Tamil Nadu, India
(Affiliated to ManonmaniamSundaranar (Affiliated to ManonmaniamSundaranar
University, Tirunelveli, 627012, University, Tirunelveli, 627012, Tamil
Nadu, India) Tamil Nadu, India)
ABSTRACT
The consumer behaviour plays an important role in marketing of fast moving consumer
goods. This behavior is affected 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. It is important for them to know consumers as
individual or groups opt for, purchase, consumer or dispose products and services and how they
share their experience to satisfy their wants or needs. In regard to the marketer’s view point, they
assume that the basic purpose of marketing is to sell goods and services to more people so that
more profit could be made. This principle of making profits is heavily applied by almost all
marketers. Earlier, the marketers were successful in accomplishing their purpose. However,
today, as the consumers are more aware about the use of product and other information of the
product, it is not easy to sell or attract customer to buy the product. It is important for marketers
to study consumer behaviour. Therefore it is necessary to identify the changes in consumer
buying behavior towards FMCG products.
Key words: Consumer Behaviour, Consumer Goods, FMCG, CPG
Introduction
The fast-moving consumer goods (FMCG) sector, also called the consumer packaged
goods (CPG) sector, is one of the largest industries worldwide. FMCGs are generally cheap
products that have a short shelf life, and purchased by consumers on a regular basis. Profit
margins on these products are usually low for retailers, who try to offset this by selling large
volumes. The FMCG sector comprises a large variety of products, with some of the most
important categories being food, beverages, personal care products, and home care products.
Within these categories, FMCG products are often near-identical, and for this reason price
competition between retailers can intense. To boost profitability, companies use marketing and
other techniques to set up loyalty to the product, which enables them to charge higher prices.
Fast Moving Consumer Goods are also playing a vital role in our everyday life. People are also
conscious to make better living standard in so many aspects. Now-a-days, in respect of this
awareness, FMCG have already become almost essential needs of the people. Considering the
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significance this study has strived to explore the factors that affect purchasing decisions of the
consumers in purchasing the FMCG of different companies. Researchers try to explore the
factors that influence the individual consumers to select their FMCG.
Objectives of the study

 To Study about the concept of FMCG products in India

 To know the Top 10 Best FMCGs in India

FAST MOVING CONSUMER GOODS (FMCG)

Fast moving consumer goods are the products that are consumed by every consumer in
day to day lives. These are to be used within days, weeks, months and years due to their shelf life
(Chengappa, 2000).
The Fast Moving Consumer Goods (FMCG) is also called as Consumer Packaged Goods
(CPG). These products are available at cost-effective prices and will reap the manufacturers
‘high turnover. However, the profits that are made on FMCG products are relatively low. When
these products are sold in bulk, then the manufacturer would get huge profits (Baumgartner,
2002).
Fast moving consumer goods have very short shelf life due to high demand for the
product or the product gets perished quickly. Few of the products that are categorized as fast
moving consumer goods include meat, vegetables, fruits, dairy products and baked items. These are perished
quickly. Few other goods such as alcohol, pre-packaged food items, soft drinks, cleaning products, toiletries would
have high turnover rates.
The level of involvement in buying these products is low, so consumers do not think or
take much time to buy these products.
Fast moving consumer goods are classified as the products that are often purchased by
consumers. Few of the fast moving consumer products that are frequently consumed by
consumers include soap, cosmetics, teeth cleaning products, shaving products, detergents,
toiletries and a few non-durable products including glassware, bulbs, batteries, paper products
and plastic items (IBEF, 2018). FMCG also include consumer electronics, packaged food items,
drinks, pharmaceuticals, though these are categorized separately.
Three best examples of Fast moving consumer goods companies include Nestle, Unilever
and Procter & Gamble. The subset of Fast Moving consumer goods are Fast moving consumer
electronics which would include MP3 players, digital cameras, GPS systems, cell phones, mobile
phones, laptops, etc.
Types of Fast-Moving Consumer Goods
As mentioned above, fast-moving consumer goods are nondurable goods, or goods that
have a short lifespan, and are consumed at a rapid or fast pace.
FMCGs can be divided into several different categories including:
 Processed foods: Cheese products, cereals, and boxed pasta
 Prepared meals: Ready-to-eat meals

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 Beverages: Bottled water, energy drinks, and juices

 Baked goods: Cookies, croissants, and bagels
 Fresh, frozen foods, and dry goods: Fruits, vegetables, frozen peas and carrots, and
raisins and nuts
 Medicines: Aspirin, pain relievers, and other medication that can be purchased without a
prescription
 Cleaning products: Baking soda, oven cleaner, and window and glass cleaner
 Cosmetics and toiletries: Hair care products, concealers, toothpaste, and soap
 Office supplies: Pens, pencils, and markers
GROWTH OF FMCG IN INDIA
The FMCG sector of India is considered to be the fourth largest one across the globe with
profits of over US $672 billion (IBEF, 2018). This contributes a high portion to the GDP growth
of India. It is predicted that the FMCG market share would double from US 1.1 Trillion by 2020
(IBEF, 2018).
The FMCG sector is likely to see a growth factor of around 60 percent in both rural and
semi-urban areas of India by 2020. Hair care products, household items, male grooming, female
hygiene, chocolates and confectionary items are found to be growing quickly. Today, urban India
is consuming over 66% of these fast moving consumer goods while rural India is consuming
over 34%. However, it is expected that rural India would increase the consumption of goods to
40% in key FMCG categories (IBEF, 2018). In urban areas people are most fond of using items
like personal care, skin care, household care and female hygienic products. The demand for these
products would be increasing day by day and are sold at an attractive price. In food segment, the
processed foods, bakery, daily products observes a long term growth in both urban and rural
areas. Growing population in both urban and semi-urban areas have resulted in the rise of
consuming FMCG products. The manufacturer is likely to receive huge sales volumes in the
coming years.
Characteristics

The following are the main characteristics of FMCGs:

 From the consumer perspective

o Frequent purchases
o Low engagement (little or no effort to choose the item)
o Low prices
o Short shelf life
o Rapid consumption
o Price Comparison over online purchase by customer.
 From the marketer perspective
o High volumes

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o Low contribution margins

o Extensive distribution networks
o High inventory turnover
List of Top 10 FMCG Leading Companies in India (2019)

FMCG or Fast Moving Consumer Goods are the answer to India’s rapidly growing
requirements for goods and services that are needed on a daily basis.
The vast majority of the population depends on FMCG companies to satisfy such basic needs.
FMCG products are those which are very quick to be purchased, are high in volume but low in
cost. Household items, over the counter medicines, food, personal care items, and stationery and
consumer electronics are some examples.
The best FMCG companies operate across the length and breadth of the country through
a wide distribution network to dispense their goods.

Top 10 Best FMCGs in India:

1. Hindustan Unilever Limited (HUL)

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HUL is a subsidiary of Unilever, one of the world’s leading suppliers of food, homecare,
and personal hygiene products with offices in 190 countries. Hindustan Unilever is one of the
best FMCGs that there is, serving more than 2 billion happy consumers for 85 years.
HUL has over 35 brands across 20 categories such as soaps, detergent, skincare,
cosmetics, tea, toothpaste and some famous names include Surf Excel, Dove, Lux, Lifebuoy,
Clinic Plus, Wheel, Sunsilk, Knorr etc. Here is the Annual Report of 2017-2018, Which Shows
that the Company has 18,000 employees and has sales of INR 34619 crores.
2. Colgate-Palmolive

Colgate-Palmolive grew from a small toothpaste and candle manufacturing unit in the
th
19 century New York and more than 200 years later, a global leader in personal healthcare
products.

The popular brands include the Colgate Toothpaste, Colgate Plax Active Salt Mouthwash, Halo
Shampoo, Palmolive Naturals and Protex Soap. Colgate-Palmolive’s core values of caring,
global teamwork and constant improvement makes them a prestigious name not only in the
Indian Fast Moving Consumer Goods industry but globally. According to the Annual Report of
2017-2018, the Company has roughly 38000 employees and has sales of INR 12045 crores.

3. ITC Limited
From its humble beginnings in 1910 Calcutta, ITC Limited has flourished into a premium
brand which with a multi-business portfolio that includes FMCG, hospitality, paperboards and
speciality papers, agri-business and information technology.

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The Fast Moving Consumer Goods supplied by ITC Limited includes soaps, incense
sticks, apparel, cigarettes and cigars, safety matches and food. ITC Limited has a deep
understanding of the Indian consumer psyche.
Their products boast of high quality in manufacture and packaging. Some of their labels
include old Flake, Classic, Navy Cut, Bingo, Sunfeast, Aashirvaad, Fiama, Vivel, Wills
Lifestyle, Paperkraft and Classmate. Annual report of 2017-2018 states that the company’s
growth is about Rs. 10500 crores within a Financial year.

4. Nestlé

Nestlé is a transnational food and beverage company, headquartered in Switzerland. Nestle India
is a subsidiary of NESTLE S.A. of Switzerland.
Nestle India dates back to 1912 when it began operating as the Nestle Anglo-Swiss
Condensed Milk Company. Post independence, Nestle has worked closely with indigenous
manufacturing and today has eight manufacturing facilities in the country for their products. The
India offices are in Kolkata, Mumbai, Chennai, and Delhi.
They cater to the nutritional and wellness requirements of Indian consumers and the
popular labels include Nescafe, Maggi, Milky Bar, Kit Kat, Bar One, Milkmaid, Nestea, Nestlé
Milk, Nestlé Slim Milk, Nestle Dahi and Nestle JeeraRaita. Nestle has truly emerged as the
largest manufacturer of food items globally. The Nestle Annual Report 2017-2018 shows that the
company has 328000 workers and has sales of INR 12045 crores.
5. Parle Agro

Parle Agro has been in the food and beverage industry since 1985. It is India’s largest
beverage company and valued at Rs. 3000 crores According to the Annual Report of 2017-2018.
Parle Agro employs about 5000 people and successfully operates 76 highly developed
manufacturing units.
The most well-known labels include Frooti, Frooti Fizz, Appy Fizz, Appy, Bailey, Bailey
Soda, Dhishoom, and Frio. Parle Agro has a strong presence in 50 countries and multiple
business verticals like beverages, packaged drinking water, and PET Preforms.

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One of the best FMCG, Parle Agro beverages have achieved a landmark stature in the
industry and they are on their way to becoming India’s first global giant in the food and
beverages sector.
6. Britannia Industries Limited

Britannia Industries is one of the oldest food producing companies in the country with a
heritage spanning more than a hundred years and According to the Annual report of 2017-2018,
the annual revenues exceeding Rs. 9000 crore.
Their products are available in more than five million retail outlets and more than 50% of Indian
homes are proud users of their range of food items.
The Britannia Industries Limited ethic has been encapsulated in their slogan, “Eat
Healthy. Think Better”. Britannia has successfully removed 8500 tones of Trans Fats from their
products and is India’s first Zero Trans Fat Company. Over 50% of the company’s products are
enriched with nutrients that are important to the body.
The labels include Good Day, Tiger, Milk Bikis, Marie Gold, Cake, Cheese, Milk, and
Yoghurt. The company is the largest brand in the organized bread market. Britannia’s
commitment to health and taste makes it one of the best FMCGs in the country.

7. Marico Limited

Marico is currently operating in 25 countries, in the emerging markets of Asia and Africa.
Determined to make a difference to FMCG (in line with their slogan, Make a Difference),
Marico has multiple brands in men’s grooming, fabric care, edible oils, skin care, hair care and
health foods.
Marico’s household brands include Parachute, Parachute Advanced, Saffola, Hair & Care, Nihar,
Nihar Naturals, Livon, Set Wet, Mediker and the global business offers brands such as
Parachute, HairCode, Fiancée, Caivil, Hercules, Black Chic, Isoplus, Code 10, Ingwe, X-Men
and ThuanPhat. Marico products are used by 1 out of 3 Indians which makes it one of the best
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FMCGs in the business. Their annual turnover was INR 63 billion as shown in the Annual report
of 2017-2018.

8. Procter and Gamble

Procter and Gamble are one of the most reputed and flourishing consumer goods
companies in the country. P&G operates under three entities in India – Procter & Gamble
Hygiene and Health Care Limited, Gillette India Limited and as one 100% subsidiary of the
parent company in the U.S. called ‘Procter & Gamble Home Products’ One of the best FMCGs,
Procter and Gamble India serve 650 million consumers.
The products are of grooming, personal hygiene, child care, health and wellbeing and
household use. Vicks, Ariel, Tide, Whisper, Olay, Gillette, Ambipur, Pampers, Pantene, Oral-B,
Head & Shoulders, Wella and Duracell are famous Procter and Gamble labels. The company has
five plants and over nine contractual manufacturing sites. The Company has the Sales of INR
58590 and 125000 workers according to the Annual Report of 2017-2018.

9. The Godrej Group

Started in 1897, the Godrej Group has business dealings in consumer goods, real estate,
appliances and agriculture. The Annual Report 2017-2018 of the company has generated
revenues of over 4.1 billion dollars and enjoys the support of 1.1 billion consumers on a global
scale.
Godrej has a substantial standing in Indian, Indonesian, Sub Saharan, and Latin American
markets where their goods especially household items, personal wash, and hair care products are
in high demand.
Some of their biggest brands are Good Night, Godrej Expert, Cinthol, B-Blunt, Hit,
Protekt, Godrej Aer, Frika, Soft and Gentle, IlicitColour, Cuticura, and Ezee. Godrej is also a
leading player in the United Kingdom as on one the prime manufacturers of hand sanitizers and

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female deodorants. The Godrej Group has cemented its position as one of the best FMCGs in the
Indian market, with a legacy dating back to 120 years now.
10. Amul

Amul is an integral part of India’s economic heritage. Amul traces its journey to 1946 as
a response to the exploitation suffered by the villagers due to the involvement of the middlemen.
To combat the disruptive presence of the cartels, villagers of Gujarat formed the Kaira District
Co-operative Milk Producers Union Ltd under the guidance of Vallabhai Patel, Morarji Desai,
and Tribhuvandas Patel.
This cooperative began with just two village dairy co-operative societies and is now
called Amul Dairy. DrVergheseKurien was entrusted the task of running the dairy from
1950.Popular Amul products include milk (Deshi A2 Cow Milk, Amul Gold), bread spreads
(butter, buttery chocolate, Amul Lite), cheese (processed cheese, Amul Gouda, Emmental
Cheese, Mozzarella), beverage (AmulKool, AmulKool Café) paneer, curd, milk powder
(Amulya, Amul Spray), chocolates, lactose free milk etc, and also Annual Report 2016-
2017 states that the company has sales of INR 15177.
Amul is an extremely trustworthy brand in the dairy and consumer products industry and
it is the trust factor that makes it one of the best FMCGs.India is a growing nation with
constantly improving standards of living. In this situation, the role of FMCGs is of prime
importance as suppliers of basic goods and services.
These companies listed above are the best FMCGs in the business due to their high
standards of manufacturing, product quality, packaging and constant innovation. These best
FMCGs have created a place for themselves in highly competitive markets due to their superior
products and a tradition of keeping consumers and households happy.

Conclusion
Consumer behavior can help in understanding the effect of price on buying. Whenever
the price is moderate on cheap more and more customer will buy the product .Nowadays
consumers are more value conscious and they want to extract the maximum benefits from a
particular product of a brand.In an organization, there are various departments like purchase,
personnel, finance, production, marketing and all departments have a motive to satisfy the

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