INTRODUCTION:

As we are approaching to the twenty first century the FMCGproduct market is growing like a money plant in this world. Notonly companies are gaining huge profit from these productsources but these products are also one of the main ingredients inour day today life. So the customer has to think and decide on theproducts which he is going to purchase because of the availabilityof the choices replicates variants in every section of the products.

Now a day’s customer has a wide variety of choice while selectingFMCG, producer has to innovate additional values to the productthat the product continues it presence in the market. Differentfactor governing the customer based on different productcategory like milk products, beverages, prepared dishes,Chocolates & Confectionaries, personal care
,fabric care etc.

This minor project consist of the response of different age grouprespondents who specifies their predetermined factors whichdrives them while purchasing The factors which drive them to buy the products are as under,Price, Availability, Brand name, Quantity, Quality, Packing,advertisement Through this we can understand that the customers in the currentscenario not only purchase the product based on the one qualitythat it contains. But they carefully analyze it and then go for thepurchase. So knowing the customers attitude is important andwhat are the factors they considered when purchasing a product.

So by this project we can come to know the factors considered bya consumer while purchasing a FMCG product.

FAST MOVING CONSUMER GOODS(FMCG):

We regularly talk about things like butter, potatochips, toothpastes, razors, household care products, packagedfood and beverages, etc. But do we know under which categorythese things come? They are called FMCGs. FMCG is an acronymfor
Fast Moving Consumer Goods, which refer to things thatwe buy from local supermarkets on daily basis, the things thathave high turnover and are relatively cheaper. FMCG’s constitutea large part of consumers’ budget in all countries. The retailsector for FMCG’s in India is in the process of a drastictransformation. The transformation of the retail market is likely tohave a long-lasting impact on wholesale trade and the distributionof FMCG’s as well. Traditional wholesalers are the most likelylosers, because large retailers tend to buy directly from suppliers. The Indian FMCG sector is the fourth largest sector in theeconomy, with a total market size in excess of US$ 13.1 billion. Ithas a strong MNC presence and is characterized by a wellestablished distribution network, intense competition between theorganized and unorganized segments and low operational cost.Availability of key raw materials, cheaper labor costs andpresence across the entire value chain gives India a competitiveadvantage.

FMCG are products that have a quick shelf turnover, atrelatively low cost and don't require a lot of thought, time andfinancial investment to purchase. The margin of profit on everyindividual FMCG product is less. However the huge number of goods sold is what makes the difference. Hence profit in FMCGgoods always translates to number of goods sold.Fast Moving Consumer Goods is a classification that refers toa wide range of frequently purchased consumer productsincluding: toiletries, soaps, cosmetics, teeth cleaning products,shaving products, detergents, and other non-durables such asglassware, bulbs, batteries, paper products and plastic goods,such as buckets. ‘Fast Moving’ is in opposition to consumerdurables such as kitchen appliances that are generally replacedless than once a year. The category may include pharmaceuticals,consumer electronics and packaged food products and drinks,although these are often categorized separately. The termConsumer Packaged Goods (CPG) is used interchangeably withFast Moving Consumer Goods (FMCG).

Three of the largest and best known examples of FastMoving Consumer Goods companies are Nestlé, Unilever andProcter & Gamble. Examples of FMCGs are soft drinks, tissuepaper, and chocolate bars. Examples of FMCG brands are Coca-Cola, Kleenex, Pepsi and Believe. The FMCG sector represents consumer goods required for daily orfrequent use. The main segments of this sector are personal care(oral care, hair care, soaps, cosmetics, and toiletries), householdcare (fabric wash and household cleaners), branded andpackaged food, beverages (health beverages, soft drinks, staples,cereals, dairy products, chocolates, bakery products) andtobacco. The Indian FMCG sector is an important contributor to thecountry's GDP. It is the fourth largest sector in the economy andis responsible for 5% of the total factory employment in India. Theindustry also creates employment for 3 m people in downstreamactivities, much of which is disbursed in small towns and rural India. This industry has witnessed strong growth in the pastdecade. This has been due to liberalization, urbanization, increasein the disposable incomes and altered lifestyle. Furthermore, theboom has also been fuelled by the reduction in excise duties, de-reservation from the small-scale sector and the concerted effortsof personal care companies to attract the burgeoning affluentsegment in the middle-class through product and packaginginnovations.Unlike the perception that the FMCG sector is a producer of luxury items targeted at the elite, in reality, the sector meets theevery day needs of the masses. The lower-middle income groupaccounts for over 60% of the sector's sales. Rural marketsaccount for 56% of the total domestic FMCG demand. Many of theglobal FMCG majors have been present in the country for manydecades. But in the last ten years, many of the smaller rungIndian FMCG companies have gained in scale. As a result, theunorganized and regional players have witnessed erosion inmarket share.

HISTORY OF FMCG IN INDIA

In India, companies like ITC, HLL, Colgate, Cadbury andNestle have been a dominant force in the FMCG sector wellsupported by relatively less competition and high entry barriers(import duty was high). These companies were, therefore, able tocharge a premium for their products. In this context, the marginswere also on the higher side. With the gradual opening up of theeconomy over the last decade, FMCG companies have beenforced to fight for a market share. In the process, margins havebeen compromised, more so in the last six years (FMCG sectorwitnessed decline in demand)

PRODUCTS AND CATEGORIES:

Personal Care, Oral Care, Hair Care, Skin Care, PersonalWash (soaps); - Cosmetics and toiletries, deodorants, perfumes,feminine hygiene, paper product; Household care fabric washincluding laundry soaps and synthetic detergents, householdcleaners, such as dish/utensil cleaners, floor cleaners, toiletcleaners, air fresheners, insecticides and mosquito repellents,metal polish and furniture polish - Food and health beverages,branded flour, branded sugarcane, bakery products such asbread, biscuits, etc., milk and dairy products, beverages such astea, coffee, juices, bottled water etc, snack food, chocolates, etc

Top 10 FMCG Companies in India

1.Hindustan Unilever Ltd.

2.ITC (Indian Tobacco Company)

3.Nestle India

4.GCMMF (FMCG)

5.Dabur India

6.Asian Paints (India

7.Cadbury India

8.Britannia Industries

9.Procter & Gamble Hygiene and Health Care

10.Marico Industries

The factors which customer focuses while purchasingFMCG products are

•Price

•Availability

•Brand name

•Quantity

•Quality

•Packing

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•Reference