FACTORS AFFECTING THE CONSUMER BEHAVIOR IN RELATION TO

MARKETING OF FMCG

Faisal Mohamed
Introduction to the Research

• Fast Moving Consumer Goods (FMCG) are one of the industries which is emerging day by day. This
is due to increase of varieties of customer needs who are passionate on trying different things and feel
it for satisfaction. FMCG is in terms of products that people consume very frequently such as
processed foods, beverages, dry goods, prepared meals, cosmetics, candy, toiletries, etc. which are
easily bought from supermarket or any grocery around the corner.
• When discussed for Sri Lanka, main place of FMCG goods are distributed through any publically
known supermarket chains and grocery shops
• The social status, age groups, reference group, religion and cultural factors are effecting the customer
behavior in FMCG marketing in central province
Research Problem & Objectives

• To understand the suitable marketing strategies for FMCG manufacturing

organization and distributors

• 02. To understand the best value adding activities that can be applied in
FMCG manufacturing organization

• 03. To understand the factors which leads to influence consumer behavior

• 04. To understand the importance of brand awareness towards consumer
behavior
• 05. To understand the expectations and requirements of existing
consumers in improving customer retention
 Literature Review
NO Author (Year ) Topic Findings
01 Tariq et al, 2013 Fast Moving Consumer Goods (FMCG) are one of the
industries which is emerging day by day. This is due to increase
of varieties of customer needs who are passionate on trying
different things and feel it for satisfaction (Tariq et al, 2013).
02 Trading Economics, 2019 developing country like Sri Lanka where main factor of
determining demand of goods will be the income. Per Capita
Income of a person in Sri Lanka would be around 3936.50 US
dollars in 2018
03 Peter, 1999 where people would look to spend more on certain FMCG
products when they see there is a value
04. Poulis and Poulis, 2011 There may be instances that supermarket sells some
promotional strategies like, buy one get one free, buy two get
one free or sometimes attached gifts or same complementary
items or even different FMCG with same manufacturer
Literature Review
NO Author (year ) Topic Findings
05 Porter, 1985 Moreover, in order to bring a value to a product, it will not alone add
the value to the product unless there are several primary activities and
supportive activities are completed
06. Kumar and Joseph, When they are getting aged, the chance of purchasing FMCG goods will
2014 reduce drastically since they are more health conscious while spending
most of their disposable income or retirement plans on medical
products

07. Maslow, 1943 As per Maslow’s needs hierarchy, it discusses when a person motivates
to fulfill particular requirement starting from basic needs to end up
with self-actualization needs
08. Oh, 2000 Supermarket itself now packaging FMCG products under their brand
name in order to increase the competition and kill the new entrants to
the FMCG market at a risk of losing
09. Kumar, 2010 Building a strong relationship with customers can achieve higher sales
for supermarkets and it could be keep a happy customer on tight. On
the other hand, such customers instinctively recommend particular
product or market place to another one with positive word of mouth
promotion
Data Analysis and findings
• Sample Design: By adopting convenient sampling method, data have been collected from 1000
respondents, comprising of Keels super and Cargills food city
• Sample Size: There are totally 23 super markets of Cargills and keels

As of the Anova test performed (Attached in

Appendix 2) in case of all factors this null hypothesis
can be accepted as none of the factors depicts a
significance more than 0.05.
Recommendations
• Improvement and strategize of 4Ps - it is important to acquire correct distribution
channels to pass the product to the customer

• Value Adding Activities- Under that theory, how value can be delivered will be identified
based on three areas such as managing the product through creating the value, managing
the brand through communicating the value and managing the customer through
delivering the value. The key element here is to create and communicate the value of
particular FMCG product and delivering the advantages of using it over competitors will
be able to able to retain particular key customers who buy particular product or brand
regular manner

• Consumer Behavior - Increase of selling price is unlikely attractive customers if their

income is increased inline to inflation. Otherwise, manufacture would bear the cost of
increasing ingredient prices by cutting down fixed costs
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