REASEARCH REPORT

ON
ANALYSE RETAIL PRODUCT DISPLAY RATIO OF TOP FMCG COMPANIES

Submitted in partial fulfillment of MBA program

Session-2017-2019
SUBMITTED TO: SUBMITTED BY:
Prof. Ajit Kumar Shukla Vikram Jaiswal
(Director of IMS) MBA-IV Sem.
Roll no. 10018527056

UNDER THE GUIDANCE OF

Dr. CHITRASEN GAUTAM
Assistant Professor of IMS, MGKVP

INSTITUTE OF MANAGEMENT STUDIES

MAHATMA GANDHI KASHI VIDYAPITH
VARANASI (U.P)

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 ACKNOWLEDGEMENT

I Vikram Jaiswal, would firstly like to thank my faculty guide, Prof. Chitrasen Gautam (assistant
professor, IMS MGKVP, VARANASI) for supervising and guiding me during this research study, who
was an ideal guide in true sense The way he guided and helped me wherever possible and needed in areas
such as, the topic of the research, for suggesting alternative solutions and sharing his personal valuable
experience & knowledge with me.

This research program helped me to apply my theoretical knowledge in practical field, hence enhance my
knowledge and information about Retail Product Display Ratio of FMCG Companies

Besides this, I would also like to give my sincere gratitude to all the friends and colleagues who
participated in the survey, without which this research would be incomplete.

VIKRAM JAISWAL

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 PREFACE

Without research, management education is meaningless. So long with the theory;

Study was provided to management students to apply their research skill and the find the solution of given
problem. Such part of management education provides a
Framework of knowledge relating to the concepts and practices of the assigned
Related to course of management

The research study is an integral part of the course curriculum of Master of Business Administration. In
this the student is in position to analyze the real problem-solving situations with mature eyes and
understand the dynamics in a better manner.

This particular research has been conducted in Varanasi. In the first phase of
Research project, there is an introduction of the topic as well as initiation of the study, which is given.
After that a market research was performed with a sample size of 150 units.

The research study was limited to Varanasi and Bhadohi. Here, in my survey, I have conducted the
respondents through personal interviews and Google forms with the help of questionnaires.

VIKRAM JAISWAL

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 DECLARATION

I hereby declare that the research paper titled “Analyse Retail Product Display Ratio of Top FMCG
Companies” submitted by me is based on actual and original work carried out be me. Any reference to
work done by any other person or institution or any material obtained from other sources have been duly
cited and referenced. I/We further certify that the research paper has not been published or submitted
publication anywhere else nor it will be send for publication in the future.

I cede the copyright of the research paper in favor of Management Wing, Director, Institute of management
studies, Mahatma Gandhi Kashi Vidyapith University, Varanasi.

Vikram Jaiswal
MBA 4thSEM
Roll no:-10018527056

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 TABLE OF CONTENTS

SI NO. CHAPTER NAME PAGE NO.

1 CHAPTER-1 INTRODUCTION 6-11
2 CHAPTER-2 OBJECTIVE 12
3 CHAPTER-3 OVERVIEW OF THE 13-29
RETAIL PRODUCT
DISPLAY OF FMCG
COMPANY

4 CHAPTER-4 WINDOW DISPLAY 30-35

OF RETAIL STORE

5 CHAPTER-5 RETAIL POINT OF 36-37

PURCHASE DISPLAY

6 CHAPTER-6 LITERATURE 38-43

REVIEW

7 CHAPTER-7 RESEARCH 44-45

METHODOLOGY

8 CHAPTER-8 SWOT ANALYSIS 46-52

9 CHAPTER-9 LIMITATION 53
10 CHAPTER-10 CONCLUSION 54

11 CHAPTER-11 BIBLIOGRAPHY 55
12 CHAPTER-12 QUESTIONNAIRE 56

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 CHAPTER -1

INTRODUCTION

Fast-Moving Consumer Goods (FMCG) or Consumer

Packaged Goods (CPG)
are products that are sold quickly and at a relatively low cost. Examples include non-durable goods such
as packaged foods, beverages, toiletries, over-the-counter drugs, and other consumables.
Many fast-moving consumer goods have a short shelf life, either as a result of high consumer demand or as
the result of fast deterioration. Some FMCGs, such as meats, fruits, vegetables, dairy products, and baked
goods are highly perishable. Other goods, such as pre-packaged foods, soft drinks, candies, and toiletries
have high turnover rates. Sales are sometimes influenced by holiday and/or seasonal periods and also by
the discounts offered.
Packaging is critical for FMCGs. To become successful in the highly dynamic and innovative FMCG
segment, a company not only has to be acquainted with the consumer, brands, and logistics, but also, it has
to have a sound understanding of packaging and product promotion.
The packaging has to be both hygienic and customers-attracting. Logistics and distribution systems often
require secondary and tertiary packaging to maximize efficiency. Unit or primary packaging protects
products and extends shelf life while providing product information to consumers.
The profit margin on FMCG products can be relatively small, but they are generally sold in large
quantities; thus, the cumulative profit on such products can be substantial. According to BASES, 84% of
professionals working for fast-moving consumer goods are under more pressure to quickly bring new
products to the market than they were five or ten years ago. With this in mind, 47% of those surveyed
confessed that product testing suffers most when deadlines are accelerated.
The growth of the internet over the past quarter century and the rise of the brand community phenomenon
have contributed greatly to the demand for FMCGs. For example, according to German research group
AGOF's internet facts, 73% of Germany's population is online. Additionally, 83.7% of internet users claim
to use the web to search for information and 68.3% to shop online. However, most FMCGs are not ordered
online as most consumers opt for the convenience of nearby brick and mortar stores for products in this
category.
Fast-moving consumer goods are products that sell quickly at relatively low cost. These goods are also
called consumer packaged goods.

FMCGs have a short shelf life because of high consumer demand—soda pop and confections—or because
they are perishable—meat, dairy products, and baked goods.

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These goods are purchased frequently, are consumed rapidly, are priced low, and are sold in large
quantities. They also have a high turnover when they're on the shelf at the store.

[Important: Slow-moving consumer goods, which have a longer shelf life and are purchased over
time, include items like furniture and appliances.]

Understanding Fast-Moving Consumer Goods (FMCG)

Consumer goods are products purchased for consumption by the average consumer. They are divided into
three different categories: durable, nondurable goods, and services. Durable goods have a shelf life of three
years or more while nondurable goods have a shelf life of less than one year. Fast-moving consumer goods
are the largest segment of consumer goods. They fall into the nondurable category, as they are consumed
immediately and have a short shelf life.

Nearly everyone in the world uses fast-moving consumer goods (FMCG) every day. They are the small-
scale consumer purchases we make at the produce stand, grocery store, supermarket, and warehouse outlet.
Examples include milk, gum, fruit and vegetables, toilet paper, soda, beer, and over-the-counter drugs like
aspirin.

FMCGs account for more than half of all consumer spending, but they tend to be low-involvement
purchases. Consumers are more likely to show off a durable good such as a new car or beautifully designed
smartphone than a new energy drink they picked up for $2.50 at the convenience store.

Fast-Moving Consumer Goods Categories

As mentioned above, fast-moving consumer goods are nondurable goods, or goods that have a short
lifespan, and are consumed at a rapidly 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.
 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.

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8
Description OF THE FMCG PRODUCTS

Overview

The fast moving consumer goods (FMCG) segment is the fourth largest sector in the Indian economy. The
market size of FMCG in India is estimated to grow from US$ 30 billion in 2011 to US$ 74 billion in 2018.

Food products is the leading segment, accounting for 43 per cent of the overall market. Personal care (22
per cent) and fabric care (12 per cent) come next in terms of market share.

Growing awareness, easier access, and changing lifestyles have been the key growth drivers for the sector.

What are FMCG goods?

FMCG goods are popularly known as consumer packaged goods. Items in this category include all
consumables (other than groceries/pulses) people buy at regular intervals. The most common in the list are
toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, and
household accessories and extends to certain electronic goods. These items are meant for daily of frequent
consumption and have a high return.

Rural – set to rise

Rural areas expected to be the major driver for FMCG, as growth continues to be high in these regions.
Rural areas saw a 16 per cent, as against 12 per cent rise in urban areas. Most companies rushed to
capitalise on this, as they quickly went about increasing direct distribution and providing better
infrastructure. Companies are also working towards creating specific products specially targeted for the
rural market.

The Government of India has also been supporting the rural population with higher minimum support
prices (MSPs), loan waivers, and disbursements through the National Rural Employment Guarantee Act
(NREGA) programme. These measures have helped in reducing poverty in rural India and given a boost to
rural purchasing power.

Hence rural demand is set to rise with rising incomes and greater awareness of brands.

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Urban trends

With rise in disposable incomes, mid- and high-income consumers in urban areas have shifted their
purchasing trend from essential to premium products. In response, firms have started enhancing their
premium products portfolio. Indian and multinational FMCG players are leveraging India as a strategic
sourcing hub for cost-competitive product development and manufacturing to cater to international
markets.

Top Companies

According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by MNCs, and the
balance by Indian companies. Fifteen companies own these 62 brands, and 27 of these are owned by
Hindustan UniLever.

The top ten India FMCG brands are:

1.Hindustan Unilever Ltd.
2. ITC
3. Nestlé India
4. GCMMF (AMUL)
5. Dabur India
6. Asian Paints (India)
7. Cadbury India
8. Britannia Industries
9. Procter & Gamble Hygiene and Health Care
10. Marico Industries

What the millenniums expect

According to a study by TMW and Marketing Sciences that surveyed 2,000 people across different age
groups ranging, young consumers are the most ‘rational’ and likely to spend more time weighing up
potential purchases. The survey also suggests that younger people are using recommendations from their
peers about products and services in order to make rational purchase decisions. According to the study,
shoppers aged 18 to 24 are 174 per cent more likely to use recommendations on social media than shoppers
aged 25 and over.

Another key factor today is – speed. Today's consumer wants packaged goods that work better, faster, and
smarter. The “ need for speed" trend highlights the importance of speed as a potentially decisive purchase
factor for packaged goods products in a world where distinctions between products are shrinking.

Younger consumers express the greatest need for speed, not a huge surprise for the smartphone generation.
Datamonitor's 2013 Consumer Survey found that younger consumers those in the 15-24 year old age group
were twice as likely to say that "results are achieved quickly" has a "very high amount of influence" on
their health and beauty product choices than consumers in the oldest age group, those aged 65 or older.
Speed matters, and 2014 will almost certainly see the introduction of new game-changing timesavers.

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Road Ahead
FMCG brands would need to focus on R&D and innovation as a means of growth. Companies that
continue to do well would be the ones that have a culture that promotes using customer insights to create
either the next generation of products or in some cases, new product categories.

One area that we see global and local FMCG brands investing more in is health and wellness. Health and
wellness is a mega trend shaping consumer preferences and shopping habits and FMCG brands are
listening. Leading global and Indian food and beverage brands have embraced this trend and are focused on
creating new emerging brands in health and wellness.

According to the PwC-FICCI report Winds of change, 2013: the wellness consumer, nutrition foods,
beverages and supplements comprise a INR 145 billion to 150 billion market in India, is growing at a
CAGR of 10 to 12%

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 CHAPTER-2
OBJECTIVE
 Make our knowledge in did website based on cosmetics product.

 Know customer desire on cosmetic products and give best product on our cosmetic products.

 Make sure our cosmetic product always good in market.

 The objective is to generate a competitive advantage increase the loyalty of a customers and to beat

the competitors.

 To study consumer behaviour with respect to FMCG product.

 To study media habits of consumers.

 To study the product differentiation of FMCG company.

 To study the marketing strategy each company.

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 CHAPTER-3

Overview of the Retail Product Display of FMCG

Company

Retail displays are a strategic aspect of your business that can help attract customers, retain their
interest, and increase sales. Visual merchandising helps to set you apart from your competition by creating
a look and feel that is unique to your business."Product Display" is the default content type that
Commerce Kickstart 1.x creates and it has a product reference field. Technically, any entity that has
a product reference field could be considered a product display.
Product display is important! The merchandise display happens to be a special presentation of the
products of a store that is used to attract and even entice consumers. The nature of these displays can vary
between industries, but all merchandise displays will be based on various basic principles that were
designed to help increase purchases. Yes, merchandise displays are a big part of the merchandising
concept, which is there to help promote sales by coordinating market, sales strategies and advertising.
There are many business consultants that truly believe that small business owners are the best for
innovative merchandise display strategies. It was stated in Chain Store Age Executive that in most
instances the smaller chains are leading the way for store ambience which supports their overall strategy
for marketing in a range of categories from hardware and houseware to fashion and even in building
supplies. It is by their nature that specialty stores depend on displays to generate a niche within the
marketplace. Plus, being much smaller in some cases will allow for a better response to conditions and
market trends. Successful retails are using displays to dispense merchandise productively and communicate
the right environment in retail.
Depending on the product and the site’s needs, products may be displayed on unique pages, on pages grouping
multiple products together (e.g. all the sizes of a t-shirt), on multiple different pages or Views, or not at all. For this
reason, Drupal Commerce enforces a separation between the definition of a product and the product display.

Visual Merchandising:

How to Display Products In Your Store

Visual merchandising is the practice of displaying products to help customers find what they want and
encourage larger purchases. Far more than simply setting up shelves, visual merchandising helps you find
the optimal store layout, and determine exactly where to place products. Visual merchandising is the
process of designing your floor layout, shelving layout and product displays to maximize sales and give
customers an exciting shopping experience. Visual merchandising as a science explains how customers
behave in a store, and thus, how your placement of products can provide them with the optimal shopping
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experience. Here are the main goals you should keep in mind when thinking through how to merchandise
your store.

 Brand Image – What’s your brand? Make sure that when customers walk in your store, they know
they are in the right spot.

Influence Customer Purchasing Habits – Correct shelf layout and product placement leads customers
through all the areas of your store where the money making items live. By practicing this concept you’ll
sway customers to purchase 4 items when they only came in for 2. Here are the main goals you should
keep in mind when thinking through how to merchandise your store.

 Brand Image – What’s your brand? Make sure that when customers walk in your store, they know
they are in the right spot.
 Influence Customer Purchasing Habits – Correct shelf layout and product placement leads
customers through all the areas of your store where the money making items live. By practicing this
concept you’ll sway customers to purchase 4 items when they only came in for 2
 Keeping these two things in mind will allow you to come up with a floor layout and associated
product merchandising plan to maximize your store’s full sales potential.Now, let’s discuss how to
get this all accomplished.

Floor Layouts and Aisle Spacing

Having a good floor layout will ensure that you can place all your products in locations that give the
highest change for a sale. Customers should notice how easy it is to move and shop your store without ever
having to take their eyes off the store shelves.

As you’re planning where you want your products to be displayed in your store, it’s important to know
your type of store layout. Store layout refers to how your shelving is placed throughout your store so that
your items are easily shopped and customer traffic flows to the items that make you the most profit.

There are three primary layouts and designs you might be using and it’s important to know a little about
each as they will determine how you plan your product placement. To learn more about store layouts, read
our article on planning your store layout.

1. Straight Store Layout

This layout gives you the maximum floor space to display merchandise and brings the customers to clearly
defined focal points. This floor plan is typically used by supermarkets convenience stores, and dollar store

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Notice how you are drawn to the what’s at the end of the aisle. These are called endcaps. We will talk
about what types of products should be placed in these locations just a little later

2. Angular Store Layout

Sometimes also called a “mixed” floor plan, an angular design uses a mix of display types. This floor plan
takes up more room but tends to be more visually pleasing: Every product can be shelved in it’s optimal
style and with proper light. The angular layout is typically used in jewelry stores, clothing stores and other
boutiques.

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16
1. Straight Store Layout

A loop floor plan also uses a combination of display units. The difference is that shelving is setup to form a
pathway for visitors to travel – typically in a “loop” through your store.

How To Organise Shop Shelves In Supermarkets To Display Products

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Supermarket display shelf placement:

Placing items strategically has a massive impact on the customer’s purchase. The products that are costly is
always placed at the top of the shelf, and those products that are popular among people and come looking
for it is situated on the lower shelves. The item that is most likely to entice the customer is placed at the eye
level. Read below to know more details about the various shelf placements.

 Top shelves: The top shelves of the supermarket storage racks is reserved for items that are either
costly or does not sell a lot. It is a part of the shelf where customers reach less, and hence you can store
products that are in-house, limited editions, etc. in those areas.
 Reach shelves: These supermarket display stands are also called as eye-level shelves, or bull’s eye as
only the best selling and leading products are put here. Since most of the shoppers look at this part of
the supermarket for buying stuff, it is considered as a premium area. You can also place next best
brands in this area along with the best sellers.
 Reach shelves for kids: Another trend noticed among shoppers is the increase in kids coming to
supermarkets along with their parents. So storage racks in Chennai stores place items that kids
like and can reach out. The products that cater to kids will have designs that look attractive to

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  children, and that mostly means more money to your supermarket.

 Bottom shelves: supermarket shelves manufacturers suggest placing Items that are large and heavy to
be placed on the bottom shelves. Also, it is more convenient for the customers to lift and carry them
from the shelf to the cash register.

Retail Display Racks

We are the Leading Manufacture and supplier of Retails Display Racks. The innovative range of Retail
Display Racks manufactured and supplied by us are used as display shelves in stores and supermarkets.
These racks are suited both for areas with small floor space of a few square meter or large floor spaces of
the very extensive markets. Notable for their sturdy construction, durability, precise finish, large shelf
space and ease of accessibility, these racks are highly functional, simple and can be easily assembled or

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dismantled. These racks are duly zinc passivated powder coated for providing resistance against corrosion.

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1. Gondola Retail Display

These are two-sided displays with adjustable shelves. This type of retail store display is used to
merchandise within your store. The freestanding frames are made of steel and can carry heavy goods.

Gondola style shelving is especially popular in grocery and pharmacy stores due to their ability to hold
many products. They can be adjusted to fit different-sized items. One disadvantage, however, is that
Gondola displays are expensive.

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2. Point of Purchase Retail Display

Point of sale shelves are placed near the cash register or the door. It is here that you place your fast-moving
and popular goods such as candy, cheap and popular items.

You can also place goods that are close to expiry date to entice customers to pick them up. It is usually
easy for the customer to reach out for an item within arm’s length and increase the possibility of an impulse
purchas

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3. Slat Wall Retail Display

Slat wall
is one of the most versatile shelving options. It can display a wide variety of
merchandise and can be wall mounted or freestanding. They consist of panels with
recessed horizontal spaces where shelves, hooks, pegs, and hangers are displayed. Slat
wall displays are affordable and do not require an expert to mount them. The cost
could increase if a professional installer is needed.

4. Grid Wall Retail Displays

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 Grid
wall displays feature wire panels, which can accommodate a variety of hooks and different shelf options.
Since they are easily customizable, they are a perfect choice for a trader with limited space. They look
great on your wall or even as freestanding fixtures. Just as the slat wall, a grid wall display is easy to
mount. It is also affordable. However, the cost could go up in case you need the services of a professional
installer.

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5. Garment Rack

Garment racks are ideal for hanging clothing. Made of metal, they are custom-made to display clothes and
other apparel. They come in different shapes and sizes. If yours is a garment selling retail store, or you
have a designated point within your retail store for clothes, you need to acquire garment racks. There is no
better way to display your garments than getting a garment rack for your retail store.

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6. Table Displays

Table
displays are made from different materials. They can be custom-made according to the needs of a client.
Place them near the entrance of your store to display craft items or other small items. They are excellent at
enticing a buyer to purchase items they had not planned to buy.

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7. Pegboards

Perfect for small items, pegboards are highly flexible. You can easily move hooks, shelves and bins to
create the space sizes you want. They are made of fiberboard and have rows of evenly-spaced holes for
attaching hooks and other storage accessories. They pair very well with other types of displays

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8. Specialty Displays

As the name suggests, specialty displays are designed for a specific purpose or product. Examples are
refrigerated displays where goods are kept fresh even when the shelves are left open for customers to pick
items.

9. Window Displays

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Window displays attract customers to your retail shop. They should be attractive and creative enough to
encourage people to come in for a closer look, and perhaps to buy. They should be placed strategically near
high foot traffic areas in your store.

Creatively display items to entice potential customers to come in and have a closer look. Do not clutter
your window display. Instead, only display just enough to prick a customer’s curiosity about your products
and entice them to step in. If your window display faces the sun, make sure items on display are those that
cannot be affected by sun.

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 CHAPTER-4

Window Displays
Of all the elements incorporated within visual merchandising, window displays are often the most direct in
attracting potential new customers.
They are usually the first point of visual contact a consumer has with a store and the starting step of the
retail experience.
Eye-catching and appealing window displays can easily be the difference between a consumer coming into
the store to view more or walking by.

The importance of window displays

Retailers need an effective window display in order to drive traffic into their stores. It's a unique form of
advertising which defines a store and gives the consumer an idea of what the brand is all about.
They are an effective form of merchandising and often creative and different types of window displays
create talking points amongst consumers and other retailers.
Research from Russell R. Mueller suggests that displays can increase sales by 540%, and a well-planned
hotspot can increase sales by 229%. Hotspots are the areas of your store that get the most traffic and are the
most visible.
More than half of those surveyed (63%) in a recent report admitted that digital signage catches their
attention.

Types of window displays

There are many different types of window displays and the one used will often depend on the store. Each
brand will have a different focus and approach which will reflect in the style of display they use. The
variety and importance of window displays are demonstrated by Mulberry and Thorntons: with Mulberry
focusing on heritage and luxury, displaying very few high-value products, in contrast to Thorntons, who
are at the higher end of high street retail, and utilise their window displays to cross-sell products before
visitors even enter the store.
The main types of window display include: closed, semi closed, open, elevated, corner, island and shadow
box.

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Open Window Display

In
Topshop's latest window display they worked with Blacks VM to create engaging visuals.
The ‘Neon Summer’ installation takes its inspiration from summer and features neon lighting words,
mannequins in festival themed clothing and white plinths lit up with neon lighting tubes.
The open back window displays give glimpses further into the store.

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Closed Window Display

Mulberry also created engaging visuals in their latest window display.They took their inspiration
from the AW17 Ready-to-wear collection in which checks make a feature. They created a grid
structure which added depth to the display and sat against a deep green closed display.

Island Window Display

Island window displays are usually found in large department and flagship stores, where retailers have a
huge space to fill but also want to create a sense of focus on the latest products or promotions.

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River Island launched their new flagship with a central island window display that was tiered to elevate
each mannequin above the next. Flanked either side by a full height window display, the island display
captures attention because of the clean natured design - in contrast to the range of product colours in the
background.

Semi-closed window displays

Semi-closed windows are created in an attempt to mix the structure that closed window provide, and the
inviting feel that open windows create.
This type of window display usually consists of a partial screen or graphic display, that covers the majority
- but not the whole - of the window.
Apple, who are famous for their open plan stores, do this particularly well. They frame their latest products
with coloured backgrounds or interactive elements, that sit back far enough from the (usually) all glass
front allowing passersby to see in-store.

Corner Window Displays

Put simply, these are window displays created on the corner of stores, however, retailers have continued to
innovate in their approach to corner window displays.

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Traditionally a tricky area to merchandise from an interior perspective, by freeing up this space for a corner
window display, retailers can create continuity in awareness as people walk around the outside of the store.

Elevated Window Displays

Elevated window displays are commonly used in jewellery and cosmetic applications, particularly for
higher value items where the shopper is likely to only make a single purchase.
This type of elevated display is used to raise featured products enough to catch the eye, usually combined
with a graphic display or method of displaying the item itself to raise awareness even further.
Particularly useful for smaller items, elevated window displays ensure products are in the ‘sweet-spot’ of
shopper awareness, with lighting below and further messaging higher in the display.

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Shadowbox window displays

Shadowbox displays feature heavily in the windows of stores that specialise in smaller items such as
jewellery and accessories.
They draw the attention of the consumer to the delicate products which would often be lost in a larger scale
window display.
Louis Vuitton geometric-inspired shadow box displays feature jewellery collections set against 20’s
inspired backdrops with rich colours and concealed lighting.

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 CHAPTER-5

Retail Point-of-Purchase Display?

Why POP Displays are Effective for Marketing Retail Products

A point-of-purchase or POP display is marketing material or advertising placed next to the merchandise it
is promoting. These items are generally located in the checkout area or other location where the purchase
decision is made. More commonly abbreviated to POP by retailers, this can be one of the most
underutilized tools in retail.

POP has become a staple strategy for manufacturers. Most vendors will have some sort of POP material
they can provide for free use in retail stores. This material will highlight the product and draw the
customers' attention to it, which is important in a retail store crammed with similar merchandise.

POP displays can be as simple as a sign or as elaborate as a display carton. For example, a retailer may use
a "shelf talker" (a sticker stuck to the end of the shelf to draw attention as the customer walks down the
aisle of a grocery store) which is a small visual item. Or they may create a full display where the vendor's
products are merchandised inside it. Think of a free-standing display with the vendor's branding on it, with
only its merchandise on display inside.

Where POPs Are Used

Not to be confused with other retailing terms like endcap, POPs have moved from the traditional location
of the cash wrap to other locations in the store. In its early forms, you would only find POP displays and
materials in the cash register area. But today, manufacturers and retailers have discovered that POP

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displays can be placed throughout a store with great

uccess.

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Multi Use Floor Stand

McPhersons - Footcare Floor Stand

Fonterra - Chiller Re-Dress

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 CHAPTER-6
Literature review

The retail sector probably is the most important sector of economy because it has to do directly
with consumer. It includes all stores, from kiosks and small groceries to supermarket chains and
shopping malls that sell products and services to final consumer for personal and household use. The aim
of this paper is to make an investigation of retail sector and its business type. To gather the data,
second resources has been used. A deeply scanning of literature has been performed. According to the
investigation, the retailing sector generally is organized in two main groups: the retailing within the
store and retailing out of the store. Retailing within the store is classified according to different
characteristics, but the most important types of classification
are those based on the form of the ownership, merchandise and price. According to the ownership-
based classification, the most important types are independent stores, chain stores,
franchising and leased department stores. According to the merchandise-based classification the most
important types of retailing are department stores, supermarkets, specialty stores, convenient stores,
superstores and retailer services. According to the price-based classification, the most important types
of retailing are discount stores, factory outlets, category killers, off-price stores, warehouse clubs and
hypermarkets. According to the place-based classification the most important type of MSc. Kujtim

HAMELI
_____________________________
Felix–Verlag, Holzkirchen, Germany and Iliria College, Pristina, Kosovo retailing are shopping centers.
The most important types of retailing out of the store are direct selling, direct marketing and automatic
vending machines sellin Key Words: retail, consumer, store, ownership, merchandise, price;
Retailing is a socio-economic system, which brings people together, to exchange goods and services
for a small consideration; which matches the needs of people, the ultimate consumers, with those of
manufacturers and agriculturists, which not only satisfies the essential daily necessities of life but also
promotes new lifestyles, thus peace, happiness and prosperity in the community (Rudrabasavaraj, 2010:
1). The origin of „retail‟ word comes from the French „retailer‟, that means „to cut a piece off‟ or „to
break bulk‟. In other words, it shows a first hand-transaction with the customer (Sharma, 2008: 1;
Dhotre, 2010: 47; Amit & Kameshvari, 2012: 466). Amit & Kameshvari define retailing as a group of
activities where goods and services are marketed to final consumers for personal or household
consuming. Retailing does this by making them available on a massive extent and offering them to
consumers on a relatively small extent Retailing is as old as exchange. Retailing is one of the oldest
businesses in the world and was practiced in prehistoric times. Earlier it was the exchange of food
and traditional weapon which followed the emergence of traders and peddlers. The day barter has been
replaced by exchange through money (in any form) the retailing came into existence (Tiwari,
2009: 1).

A few centuries ago, in the 16th and 17th centuries, some retail chains in some European cities were
known (Aydin, 2013: 1-2). However, the beginning of retailing development is acknowledged to be at
th th
the end of the 19 century and early of the 20 century. At the beginning, retailers

39
dominated with any merchandise. Later, retailers specializing in the market began to gain momentum. Last
few years, there are very large stores, but again selling every kind of merchandise. In countries that have
developed retailing, competition has reached high levels and has again started focusing on
specialized stores. But this time, they have started to show themselves very deeply (MEGEP, 2008:
13; Altunışık et al., 2012: 280). Retailing Functions

People often think that retailing is just selling goods at a store, while retailing at the same time
includes the sale of services. For example, accommodation in a hotel, visit at a doctor, hair
cutting, buying DVDs, VCDs or distributing a pizza at home are all retail services (Aydın et al.,
2013: 4).
Retailing can be differentiated in numerous manners from other business activities. It has following
characteristics (Arora, 2012: 12): There is a direct end-user interaction in retailing.
promotions. Sales at the retail level are generally in small unit sizes.
members of the value chain. Place utility: Generally, products should be available in a place that
the consumer chooses. Otherwise, consumers may not choose the merchandise or the required
merchandise can either replace or give up the merchandise completely Time utility: Because consumers are
looking for products at certain times, the retailer's job is to know this time and make the products
available at the required time. However, the retailer seeks to obtain the cost price of the offered capital.
The length of delivery time available to the product will affect the price leve
Ownership utility: The retailer selling to customers with credit provides the utility of ownership. It
transfers the ownership of the goods and the payment of the price relates to the maturity. From this
perspective there is a credit or financial cost of services to retailers. Sales people also
make a contribution to creating this benefit. They complete the documents for the transfer of ownership
and provide customer information about the product, charge the price, fill in the sales voucher, and so on.

Retailers generally can be classified by ownership, offered products, operating methods, service
level, and location. Below is the classification of retailer institutions
According to ownership: Independent Retailers
Unified Retailers (volunteer chains, retailer groups, chain stores, branch stores)

1. Based on the products offered

2. General stores
3. Stores that sell limited types of products
4. Special stores
5. Department stores
6. Convenient stores

3. According to the method of activity:

In store retailing
Out store retailing (sales by post, door-to-door sales, vending machines, sales by telephone, television,
computer)
4. According to the service level:
Self Service Retailing (choose-get itself)
Retailers who provide limited service
Retailers who provide full service

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5. According to the place they are:
Stores in the neighborhood
Stores s in the city cent
Secondary shopping centers
Stores in the city's main shopping centers
Stores in shopping malls
Retailers in neighborhood markets
Sellers on the edge of the highway
Stores in villages and towns
Retailers in moving (with and without a vehicle)
Truck dealer

In Store Retailing:
The main purpose of retail stores is to provide profit by selling final consumer goods. In
accomplishing this goal, retailers offer significant benefits to consumers (Altunışık et al., 2012: 282;
MEGEP, 2008: 16). The retailer by providing the right product, in the right place and in the right
time, realizes the sale and transfers the ownership and provides the place, time and ownership utility

chain stores, which belong to the retail classification by ownership, are the chain of businesses where two
or more retail stores are under one owner . From the shops which offer any kind of goods or service
can be created chains .Comparing to independent stores, chain stores have a lot of advantages. First,
because of their size reailers can buy in big quantities at lower prices and achieve promotional activities

Franchising is a contractual association, between a producer, wholesaler, or service business and

independent business people who buy the licence to own and act one or more units in the franchise
system (Tiwari, 2009: 74). Manufacturer gives franchise (authority) to a number of independent
retailers. But they are not the owners in the real sense. All independent retailers (franchisees) are
bound to follow certain rules and regulations laid by manufacturer (franchiser) (Dhotre, 2010: 108).
The biggest difference between franchise businesses and other contractual systems (voluntary
chains and retail cooperatives) is that franchise systems are normally based on some unique manufacturer
service; a method of making business; or the trade name, goodwill, or patent that the franchisor has
developedLeased Department Stores - As the name indicates itself, this isdepartmental store available
for rent from an outsider on leaserental. Leased Department Stores - As the name indicates itself, this
is a Departmental store available for rent from an outsider on leaserental. It is managed as an
sovereign unit responsible for its incomes and outcomes (Chunawalla, 2009: 32). It is a good
method available to the retailer for expanding his product offering to the customers. One can find
jewellery, shoe and perfume sold in this method in large department stores Supermarkets – This
type of retailing is the most frequently . Supermarkets are shops Super markets are shopswhich sell
specially food products, cleaning and personal care in special sectors with the self-service system. In
the sector, attention is paid to open-air showcases and performances Convenient Stores - Convenient
stores are shops that are established in places closer to the customer, working on the basis of self-
service, which have a few varieties but many food products (Tenekcioğlu et al., 2005: 195)

Convenience stores are small stores and carry a narrow line of every day sold convenience products
(Kotler & Armstrong, 2013: 377). Conventional grocery stores are a lighter type of traditional food
stores that have a limited product line. Convenience stores recently have also broaden their merchandise

41
to items such as snacks, tobacco products, sandwiches, softdrinks, alcoholic beverages such as beer
and wine, magazines, newspapers, lottery tickets and car washes. Convenient stores substitues the
consumer trip to supermarket.Shopping Malls: “A shopping mall is a group of retail A shopping
mall, shopping center, shopping arcade, shopping precinct or simply mall is one or more buildings
forming a complex of shops representing merchandisers, with interconnecting walkways enabling
visitors to easily walk from unit to unit, along with a park area – a modern, indoor version of the
traditional market place. Particularly, shopping malls offer diverse brands and utilities at the same
place and host independent retail stores, services, and parking and are maintained by a management firm
as a unit.Discount Stores - After World War II, some retailers began to focus

Discount stores, which were rented low, made cash payments, repaired itself any service or
problem, and sold on discounts to durable products such as cameras and televisions (Perreault et
al., 2013: 300). In the early 1950s, with the end of the war, brand makers were added and
discount stores got the opportunity to buy the desired goods and thus expanded their products. At
this stage, many discount stores were moved to more convenient locations and began to offer more
service and warranty. In this way, retail stores of this version were developed (Perreault et al.,
2013: 300). Discount shops are retailers who intend to sell to the consumer branded goods at low
prices continuously Specialty Stores - Stores that sell special merchandise are small, specialized,
mostly independent retailers, who with a certain product line address a particular segment of the market
but offer variety for clients in the specialized branch. They operate in such areas as, for example,
children's clothing, sportswear, coats, shoes for women, and sometimes even in the form of chain
stores Specialty stores sell particular types of products, high quality sports equipment. Specialty
Stores - Stores that sell special merchandise are small, specialized, mostly independent retailers, who
with a certain product line address a particular segment of the market but offer variety for clients in
the specialized branch. They operate in such areas as, for example, children's clothing, sportswear,
coats, shoes for women, and sometimes even in the form of chain stores (Mucuk, 2009: 289).
Specialty stores sell particular types of products, high quality sports equipment, privileged clothing,
mature products, and even antique products. They are intended to be units that provide better service
with knowledgeable employees and unique product range (Perreault et al., 2013: 299). Specialty
stores, host limited product lines with profound assortments within those lines. Today, these stores are
blooming. The increasing use of market segmentation, market targeting, and product specialization has
resulted in a greater need for these stores which focus on specific goods and segments (Kotler &
Armstrong, 2013: 376). In specialty stores, the purchase is facilitated by a service provided to certain
clients who are well known to management and sales representatives; sales speed increases, as well as
cost reductions in product fashion shift and style change Leased Department Stores - As the name
indicates itself, this is a Leased Department Stores - As the name indicates itself, this is a department
within a departmental store available for rent from an outsider on leaserental. It is managed as an
sovereign unit responsible for its incomes and outcomes (Chunawalla, 2009: 32). It is a good
method available to the retailer for expanding his product offering to the customers. One can find
jewellery, shoe and perfume sold in this method in large department stores

42
1: Trade promotion optimization

1.1Business challenges
• Identify the right price and discount point that maximises sales lift and return on investment (ROI)
• Optimise promotions to improve sales performance of newly launched products

Analytics solution and results

• Develop an analytic model showing impact of various marketing campaigns on sales • Evaluate media
effectiveness, ROI and simulate what-if scenarios The results: Media channel effectiveness
• Prioritised advertisement and promotion spend in favour of channels that provide better ROI
• Reduced the overall spend on advertising and promotion

2: Marketing mix modelling

Business challenges • Calculate ROI of advertisement spend across various channels like television, print
and web • Understand consumer behaviour with regard to exposure to advertising
Analytics solution and results • Calculate ROI of advertisement spend across various channels like
television, print and web • Understand consumer behaviour with regard to exposure to advertising •
Develop an analytic model showing impact of various marketing campaigns on sales • Evaluate media
effectiveness, ROI and simulate what-if scenarios The results: Media channel effectiveness • Prioritised
advertisement and promotion spend in favour of channels that provide better ROI •Reduced the overall
spend on advertising and promotion

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 CHAPTER-7
RESEARCH METHODOLOGY
The study has been done mainly on the basis of secondary data and information available from books and
published works and reports.

With the growth of population and spending power of the consumer has created the opportunities and
challenges for the FMCG companies in the world market Simultaneously, competition to win consumers
has been increased drastically. World is becoming the small village and Many MNC‘s have entered in
India and other countries. Marketing paradigm is shifting from consumer satisfaction to consumer delight.
The strategies of branding Indian personal care FMCG has to be studied.

44
While selecting Indian personal care FMCG for analysis 3 are selected of Indian origin and 3 of
Multinational based for comparison for the analysis purpose.

45
 CHAPTER-8

SWOT ANALYSIS

46
47
48
he fast moving consumer goods (FMCG) segment is the fourth largest sector in the Indian economy. The
market size of FMCG in India is estimated to grow from US$ 30 billion in 2011 to US$ 74 billion in 2018.

Food products is the leading segment, accounting for 43 per cent of the overall market. Personal care (22
per cent) and fabric care (12 per cent) come next in terms of market share.

Growing awareness, easier access, and changing lifestyles have been the key growth drivers for the sector.

49
What are FMCG goods?

FMCG goods are popularly known as consumer packaged goods. Items in this category include all
consumables (other than groceries/pulses) people buy at regular intervals. The most common in the list are
toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, and
household accessories and extends to certain electronic goods. These items are meant for daily of frequent
consumption and have a high return.

Rural – set to rise

Rural areas expected to be the major driver for FMCG, as growth continues to be high in these regions.
Rural areas saw a 16 per cent, as against 12 per cent rise in urban areas. Most companies rushed to
capitalise on this, as they quickly went about increasing direct distribution and providing better
infrastructure. Companies are also working towards creating specific products specially targeted for the
rural market.

The Government of India has also been supporting the rural population with higher minimum support
prices (MSPs), loan waivers, and disbursements through the National Rural Employment Guarantee Act
(NREGA) programme. These measures have helped in reducing poverty in rural India and given a boost to
rural purchasing power.

Hence rural demand is set to rise with rising incomes and greater awareness of brands.

Urban trends

With rise in disposable incomes, mid- and high-income consumers in urban areas have shifted their
purchasing trend from essential to premium products. In response, firms have started enhancing their
premium products portfolio. Indian and multinational FMCG players are leveraging India as a strategic
sourcing hub for cost-competitive product development and manufacturing to cater to international
markets.

Top Companies

According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by MNCs, and the
balance by Indian companies. Fifteen companies own these 62 brands, and 27 of these are owned by
Hindustan UniLever.

The top ten India FMCG brands are:

1.Hindustan Unilever Ltd.
2. ITC (Indian Tobacco Company)
3. Nestlé India
4. GCMMF (AMUL)
5. Dabur India
6. Asian Paints (India)

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7. Cadbury India
8. Britannia Industries
9. Procter & Gamble Hygiene and Health Care
10. Marico Industries

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52
 CHAPTER-9
LIMITATION

SCOPE AND LIMITATION OF THE STUDY:

1. Geographical scope: It is limited to Indian Brand FMCG personal care in Aurangabad

District and Maharashtra state only.

2. Operational: The study is primarily confine to the Marketing strategies of

Indian Brand FMCG in personal care.

3. Temporal scope: The investigation was collection of an exhaustive data from all the

FMCG Products of Varanasi ,Bhadohi,Mirzapur

district till date. The study is restricted to UP state only

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 CHAPTER-10
Conclusion

The FMCG industry has become increasingly competitive, with both private and own label
products competing for consumer attention on supermarket shelves. Within this
environment, packaging has become increasingly significant: further driven by consumers’
need for convenience, rising expectations, and environmental concerns. This has resulted in
an increasing emphasis on packaging, particularly with regard to design and marketing
communications. It is clear that packaging development and technology provide the
opportunity for firms to increase their competitiveness and provide new customer benefits.
This research is understood to be the first empirical study of its kind, investigating firms
management of packaging within their NPD activities. The study examined how firms
manage packaging within their NPD process, and how the development of new packaging
contributes to new product opportunities. In order to build a more comprehensive
understanding of the management of packaging development, this study incorporated the
significance of suppliers and their technologies, role of design agencies, and significance of
both absorptive capacity and the production process. It involved a preliminary research
phase, followed by two key data collection phases to address the research questions. The
development of a new framework and typology has significantly contributed to the
literature and understanding of the issues concerning the research context. The following
sections will evaluate the substantive findings of this research, particularly in relation to
prior research, examine the implications of the key findings, and detail the limitations of the
study and implications

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 CHAPTER-11
BIBLIOGRAPHY

https://en.wikipedia.org/wiki/Fast-moving_consumer_goods

http://info.shine.com/industry/fmcg/6.html

www.imagesretailing.com

www.reportbuyer.com

www.thirdeyesite.in

www.subhiksha.com

www.google.com

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