Corporate Internship Project Report

On
A Study on Consumer Buying Behavior for FMCG Products
(With Reference to Aashirwad Flour at ITC Ltd.)

ITC LIMITED

SUBMITTED IN
PARTIAL FULFILLMENT OF
BACHELOR OF BUSINESS ADMINISTRATION

Submitted by:
Ayushi Shah
(ICG/2015/19331)

Under the Supervision of:

(Dr. Monika Singh)
Assistant Professor
Department Of Management Studies
The IIS University
2017-2018

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 ACKNOWLEDGEMENT

Every project big or small is successful largely due to the efforts of number of wonderful people
who have always given their valuable advise lent a helping hand. I sincerely appreciate the
inspiration, support and guidance of all those people who have been instrumental in making this
project a success.
I would, at the very onset, like to thank Mr. Nitin Rao, Asst. Branch Manager, ITC Limited,
Jaipur for providing me the opportunity to perform my Corporate Internship Program in the
Company and made my journey in ITC Aashirwad a delight. I emphatically express the regards
and gratitiude towards my speculative guide, for his expert and invaluable guidance, constant
encouragement and constructive criticism to accompalish such labourious and exhaustive work
timely and perfectly.
I, would like to, give special thanks and gratitude to Dr. Monika Singh Asst.
Professor,Department of Management Studies. THE IIS UNIVERSITY, Jaipur without whose
support this project would not have seen the phase of culmination. And thanks for mentoring and
providing the necessary data and information as and when required throughout the project.
Last but not the least, I place a deep sense of gratitude to my family members and my friends
who have been constant source of inspiration during the preparation this project work. I solely
claim all the responsibilities for any shortcoming and limitation in this work.
AYUSHI SHAH

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 Preface
The Corporate Internship project report on Consumer buying behavior towards fmcg product has
been prepared in partial fulfillment of BACHELOR OF BUSINESS ADMINISTRATION (BBA)
from May 20 to July 4 2017.
The report is an earnest endeavor made to understand the behaviour of consumer about their
preferences for FMCG products of ITC.I was required to conduct a study on consumer behavior
towards Aashirvaad flour and bring out the potential and loyal retailers so that the company
could maintain the market leadership in the existing business scenario.
During the course of study, I visited around 100 shops and conducted personal Study with the
retailers to find out major competitors in fmcg products.
This report serve as a mean to enhance the learning and practical exposure while doing the
internship which provide me the platform where I will be able to face the practical aspects of
theoretical knowledge gained so far.
The corporate internship project report was scheduled for 45 days . It is integral part of BBA
curriculum.
The information presented in this Project Report was obtained from sources like Company
P e r s o n n e l , C o m p a n y We b s i t e s , O t h e r We b s i t e s , C o m p a n y R e p o r t s , a n d O t h e r
literature.

The summer internship was challenging, gainful and interesting and it gives real insight of the
corporate world.
AYUSHI SHAH

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 Table of Content

S.no Particulars Page no.

Cover page 1
Acknowledgement 2
Preface 3
Contents
1 Introduction to the topic 7-11

2 History of company 12-17

3 Research design 18-31

 Literature review

 Justification & Relevance of the Study

 Theoretical Framework (Variables of the study)

 Scope of the Study (Geographical Area covered)

 Research Objectives

 Universe and Sample details (Sampling technique

used and sample size with details of respondent) of the
Study

 Data Collection techniques

 Statistical techniques and tools used

 Techniques: Tables, diagrammatic presentation.

 Tools: MS-Excel
4 Data Analysis and Interpretation 31-48

5 Findings, Conclusions and Suggestions 45-48

 Findings
 Conclusions
 Suggestions
 Future Scope

References 49-50

Appendices (Questionnaire, Data Sheet, SPSS Output, etc.) 51-52

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LIST OF TABLES:
Table No. TITLE Page No.

3.7 Literature review summary 23-26

table

4.1 Types of Flour using by 32

consumers.

4.2 Most Preferred brands 33

4.3 Places Of Purchase 34

4.4 Factors influencing buying 35

decision
4.5 Quantity of flour 36

4.6 Types of advertising media 37

4.7 Opinion of customers 38

4.8 Users of aashirvaad flour 39

4.9 Rating of brand performance 40

4.10 Reason for brand loyalty 41

4.11 Loyalty of brand 42

LIST OF FIGURES:

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 Figure No. TITLE Page No.

2.1 Product mix of ITC 17

4.1 Types of Flour using by 32

consumers.

4.2 Most Preferred brands 33

4.3 Places Of Purchase 34

4.4 Factors influencing buying

decision
4.5 Quantity of flour 35

4.6 Types of advertising media 36

4.7 Opinion of customers 37

4.8 Users of aashirvaad flour 38

4.9 Rating of brand performance 39

4.10 Reason for brand loyalty 40

4.11 Loyalty of brand 41

INTRODUCTION
1.1 Marketing concept:

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Marketing is the communication between a company and the consumer audience that aims to
increase the value of the company or its merchandise, or to raise the profile of the company and
its products in the public mind. The purpose of marketing is to induce behavioral change in the
receptive audience. The American Marketing Association has defined marketing as "the activity,
set of institutions, and processes for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large."
The techniques used in marketing include choosing target markets through market analysis and
market segmentation , as well as understanding methods of influence on the consumer behavior.
From a societal point of view, marketing provides the link between a society's material
requirements and its economic patterns of response. This way marketing satisfies these needs and
wants through the development of exchange processes and the building of long-term
relationships.
In the case of nonprofit organization marketing, the aim is to deliver a message about the
organization's services to the applicable audience. Governments often employ marketing to
communicate messages with a social purpose, such as a public health or safety message, to
citizens.

1.2 TYPES OF MARKETING

 Services marketing
Services marketing relates to the marketing of services, as opposed to tangible products. A
service (as opposed to a good) is typically defined by the paraphrase of 5 I's :
 Inseparability - The customer cannot be separated from the service and therefore, the
use of it is inseparable from its purchase (i.e., a service is used and consumed
simultaneously)
 Intangibility - It does not possess material form, and thus cannot be touched. Yet, many
services are directly connected to products. Services (compared with goods) can also be
viewed as a spectrum. Not all products are either pure goods or pure services. An
example would be a restaurant, where a waiter's service is intangible, but the food is
tangible.

 Service Products - Those pure services or major service components, directly offered to
customers, such as a gig

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  Product Services - Those service elements associated with a physical objects such as on-
line shopping or instrument tuning
 Inconsistency (Variability) – Every delivery of the service will be different.
Furthermore, the use of a service is inherently subjective, meaning that several persons
experiencing a service would each experience it uniquely.

 Inventory (Perishability) – the service cannot last

 Involvement – customer can tailor the service while using it (e.g. hairdresser)
For example, a train ride can be deemed a service. If one buys a train ticket, the use of the train is
typically experienced concurrently with the purchase of the ticket. Although the train is a
physical object, one is not paying for the permanent ownership of the tangible components of the
train.

 Right-time marketing
Right-time marketing is an approach to marketing which selects an appropriate time and place
for the delivery of a marketing message.

 Guerrilla marketing
Guerrilla marketing is an advertising strategy in which low-cost unconventional means (graffiti
or street art, sticker bombing, flash mobs) are used, often in a localized fashion or large network
of individual cells, to convey or promote a product or an idea.

 Digital marketing
Digital marketing is an umbrella term for the targeted, measurable, and interactive marketing of
products or services using digital technologies to reach and convert leads into customers. The
key objective is to promote brands, build preference and increase sales through various digital
marketing techniques. It is embodied by an extensive selection of service, product and brand
marketing tactics, which mainly use the Internet as a core promotional medium, in addition to
mobile and traditional TV and radio.

 Psychological marketing

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Psychological marketing deals mainly with intangible aspects of communications, on the role of
mental images and representations. The Psychology of Marketing represents an interdisciplinary
research area, where several contributions converge, from cognitive science, neuroscience, social
psychology, and dynamic psychology. Early contributions were rooted mainly in social
psychology, with a strong attention to attitude research and the analysis of behavioral effects.
Recent approaches include a comprehensive analysis of several areas, including neuroscience,
linguistics, and experimental research. Key aspects are: effects of visual and verbal messages on
mental maps, effects of advertising on attitudes and emotions, psychophysiological response to
advertising messages and products observation, effects of marketing on emotional states,
consumer psychology insights, and group psychological dynamics.

1.3Consumer Buying Behavior

The collective actions, including the searching, evaluation, selection, purchasing, consuming,
disposing of products, taken by consumers in determining which goods and services hold the
most value for meeting their wants and needs. Marketers study consumer buying behavior to
determine the influence of psychological, sociological, demographical, and cultural factor shave
on buying decisions.

The ultimate objective of all production is consumption for the satisfaction of varied needs
of man. A free market economy provides freedom to the consumers to buy and consume goods of
their choice. Buying preferences of the consumers send signals to the producers to produce
various commodities in required quantities. Producers, therefore, produces only those
commodities which are desired by the consumers. Consumer behavior is related to likes and
dislikes and expectations of the consumers. Consumer behavior has changed in recent year
sowing to enhanced awareness, information technology and more importantly governmental
intervention through legislations. Thus, the manufacturers are more cautious in dealing with
consumers of their respective products .In recent years, the lifestyle of a large number of
consumers in India has changed dramatically and the process of change is on. The buying
behavior of the consumers is influenced by several factors such as socio-economic conditions,
cultural environment, literacy level, occupation, geographical location, efforts on the part of
sellers, exposure to media etc. Consumer behavior in the market is perplexing because of a
singular lack of consistency in groups which are homogeneous in parameters of demographics-
Age, occupation, education and income .The study of consumer behavior implies how & why a

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particular consumer reacts to the decisions of producers. It is the study of how individual make
decision to spend their available resources (time, money, effort) on consumption related items. It
includes the study of why they buy it, when they buy it, where they buy it, how often they buy it
& how often they use it.
This study focused on understanding the consumer buying behavior of FMCG products with
reference to Aashirvaad flour .It also focused on the issue that whether the marketing strategies
are properly implemented or not. The study would be beneficial for the ITC Company to
formulate the strategy for future.

COMPANY PROFILE

2.1 COMPANY OVERVIEW

ITC is one of the India`s foremost private sector companies with a market capitalization of
nearly US $ 15 billion & a turnover of US$ 6 billion. Rated among the World`s Leading
Companies by Forbes magazine, ITC ranks third in pre-tax profit among India`s private Sector
corpoiration

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ITC is one of India's foremost multi-business enterprise with a market capitalisation of US $ 50
billion and a turnover of US $ 8 billion. ITC is rated among the World's Best Big Companies,
Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine and as 'India's
Most Admired Company' in a survey conducted by Fortune India magazine and Hay Group. ITC
also features as one of world's largest sustainable value creator in the consumer goods industry in
a study by the Boston Consulting Group. ITC has been listed among India's Most Valuable
Companies by Business Today magazine. The Company is among India's '10 Most Valuable
(Company) Brands', according to a study conducted by Brand Finance and published by the
Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by
Business Week.
As one of India`s most valuable & respected corporations, ITC is widely perceived to be
dedicatedly nation- oriented. Chairman Y C Deveshwar calls this source of inspiration (a
commitment beyond the market).
In his own words; ( ITC believes that its aspiration to create enduring value for the nation provides
the motive force to sustain growing share holder value. ITC practices this philosophy by not only
driving each of its businesses towards international competitiveness but by also consciously
contributing to enhancing the competitiveness of the larger value chain of which it is a part).

ITC`s diversified status originates from its corporate strategy aimed at creating multiple
drivers of growth anchored on its time-tested core competencies: unmatched distribution reach,
superior brand-building capabilities, effective supply chain management & acknowledged
services skills in hoteliering. Over time, the strategic forays into new businesses are expected to
grammar a significant share of these emerging high-growth markets in India.

 One of India’s most Admired and Valuable companies - Market Capitalisation: ~Rs. 3.2
lakh crores
 A US$ 8 billion enterprise by Revenue - 58% of Net Revenue from non-Cigarette
segments
 Leading Fast Moving Consumer Goods (FMCG) marketer in India- Established several
world-class brands in the last 10 years .

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  10 year Value Addition ~ Rs. 2.8 lakh crores (US$ 51 billion). 75% of the incremental
Value-Added accrued to the Exchequer over the last 5 years. - Among the top tax payers
in the country.
 ITC& its Group Companies employ over 32,000 people directly; Sustainable
development models and value chains have supported creation of ~6 million sustainable
livelihoods.

 A global exemplar in sustainable business practices - Only enterprise in the world of
comparable dimensions to have achieved and sustained the 3 key global indices of
environmental sustainability of being 'water positive' (for 15 years), 'carbon positive' (for
12 years), and 'solid waste recycling positive' (for 10 years).

2.2History of ITC
ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company
of India Limited'. A leased office on Radha Bazar Lane, Kolkata, was the centre of the
Company's existence. The Company celebrated its 16th birthday
onAugust24,1926,by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L.
Nehru Road)Kolkata, for the sum of Rs 310,000. The Company's ownership progressively
Indianised, and the name of the Company was changed to I.T.C. Limited in 1974. In recognition
of the Company's multi-business portfolio encompassing a wide range of businesses - Cigarettes
&Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-
Exports, Foods, Lifestyle Retailing and Greeting Gifting & Stationery - the full stops in
theCompany's name were removed effective September 18, 2001.
ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for
ITC's Cigarettes business. It is today India's most sophisticated packaging house.
In 2002, ITC entered the confectionery and staples segments with the launch of the brands mint-
o and Candyman confectionery and Aashirvaad atta (wheat flour). 2003 witnessed the
introduction of Sunfeast as the Company entered the biscuits segment.
As one of India's most valuable and respected corporations, ITC is widely perceived to
bededicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration"a
commitment beyond the market"ITC employs over 26,000 people at more than 60 locations across
India. The Companycontinuously endeavors to enhance its wealth generating capabilities in

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aglobalisingenvironment to consistently reward more than 3,75,000 shareholders, fulfill the
aspirations of
its stakeholders and meet societal expectations.

2.2.1 ITC VISION

Sustain ITC’s position as one of the India’s most Valuable corporations through world Class
performance, creating growing value For the Indian & the company’s Stake holders.

2.2.3 ITC MISSION

To enhance the wealth generating capability of Enterprise in a globalizing environment,

delivering Superior & sustainable stake holder value. Over the years, ITC has evolved from a
single Product Company to a multiple business corporation. Its business separated over a wide
spectrum, Ranging from cigarettes & tobacco to hotels Packaging, paper & paperboards
&international.

2.2.4 Commodities trading

ITC defined Corporate Governance as a systemic Process by which companies are directed &
controlled to enhance their wealth generating capacity.
Since large corporation employ vast quantum of a societal Resources, we believe that the
governance process should Ensure that these companies are managed in a manner that
Meets stake holder’s aspirations & societal expectations.

2.2.6 CORE PRINCIPLES

ITC`s Corporate Governance initiative is based on two core principles. These are Management
must have the executive freedom to drive the enterprise forward without undue restraints; and
This freedom of management should be exercised with in a framework of effective
accountability

2.2.7 CONTROL

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ITC believes that control is a necessary concomitant of its second core principle of governance
that the freedom of management should be exercised within a framework of appropriate checks
and balances. Control should prevent misuse of power, facilitate timely management response to
change, and ensure that business risks are preemptively and effectively managed.

2.2.8 SWOT ANALYSIS

SWOT Analysis

1. ITC has a strong and experienced management

2. Strong brand presence, excellent products advertising
3. Diversified product and services portfolio which includes FMCG,
Hotel chains, paper & packaging and agri-business
4. Over 6500 E-Choupal CSR activities and sustainability initiatives
enhance ITC’s brand image reaching over 4 million farmers
5. ITC limited employees over 25,000 people
Strengths 6. Excellent research and development facilities

1. ITC is still dependant on its tobacco revenues and people have

cheaper substitutes and other brands
Weaknesses 2.Hotel industry has not been able to create a huge market share

1. Tap rural markets and increase penetration in urban areas

2.Mergers and acquisitions to strengthen the brand
3.Increasing purchasing power of people thereby increasing demand
Opportunities 4. More publicity of hotel chains to increase market share

Threats 1. Strict govt regulations and policies regarding cigarettes

2.Intense and increasing competition amongst other FMCG
companies and hotel chains

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 3.FDI in retail thereby allowing international brands
Source: www.scribd.com

2.2.9 PRODUCT MIX OF ITC

Figure 2.1

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 Research Methodology

This research is descriptive in nature as the study aims to find out the consumer behaviour about
FMCG product. The study is carried out the naturalistic observation and survey questioning,
which are attributes of descriptive research.

3.1 Introduction To Research Problem:

A research problem is a definite or clear expression [statement] about an area of concern, a
condition to be improved upon, a difficulty to be eliminated, or a troubling question that exists in
scholarly literature, in theory, or within existing practice that points to a need for meaningful
understanding and deliberate investigation. A research problem does not state how to do
something, offer a vague or broad proposition, or present a value question.

To Analyse the sales & distribution of aashirwad flour in different places of jaipur city and find
out the reason for decrease in it sales and also finds out the differences between its competitors
product.

3.2 REVIEW OF LITERATURE

A literature review is a text of a scholarly paper, which includes the current knowledge
including substantive findings, as well as theoretical and methodological contributions to a
particular topic. Literature reviews are secondary sources, and do not report new or original
experimental work. Most often associated with academic-oriented literature, such reviews are
found in academic journals, and are not to be confused with book reviews that may also appear
in the same publication. Literature reviews are a basis for research in nearly every academic
field.It is an evaluation report of studies found in the literature related to your selected area.
It should be defined, precise,evaluated and clarifies the literature.

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Broadbridge Adelina & Morgan Henry (2007), consumer buying behavior and perception
toward retail and brand baby products. A two-stage research methodology consisting of both
qualitative and quantitative research techniques was adopted. The population was defined as
‘parents of children under the age of five who use baby care products’.

Hysen Bytyqi & Mensur Vegara (2008) have research on analysis of consumer buying behavior
in regard to dairy products in kosovo. This survey was carried out by the Department of
Livestock and Veterinary Sciences, Agriculture Faculty of Prishtina, Kasovo during 2007.
Interviews of 304 respondents were conducted in super-markets (677) and mini-markets (397)
and later 23 interviews were completed in green market mainly for Sharri cheese and curd. To
study the reasons for choosing milk products upon supply, a coding approach from 1- 5 was used
(1 = very important; 2 = highly important; 3 = average; 4 = less important; 5 = not important).
Perception of consumers about dairy products was assessed using different variables i.e. habits,
trust, price, quality, package, age of consumer, origin of product, type of shop, brand and gender
of consumer. It was conclusion after analysis that the packaging has great effect on the purchase
of dairy products.

Nuntasaree S. and E Barry (2008) published a paper with subject of a model of male and
consumer behavior in buying skin care products in Thailand.. The conceptual model of male
consumer behavior in buying skin care products beliefs in product attributes Quality, Price,
Brand, Packaging, Advertising, Promotion, Salesperson, Distribution. This study used a
quantitative research method. A convenience sample with a shopping mall-intercept technique
was employed for the sampling method. The closed-ended questionnaire developed from
standard questions of relevant literature was chosen as a research instrument. The Statistical
Package for the Social Sciences program (SPSS) version 15.0 was used in this study with a 0.05
level of significance for all of the statistical assessments. The data set was screened and
examined for incorrect data entry, missing values, normality and outliers.

Gupta Kriti Bardhan (2009) had studied on Consumer Behavior for Food Products in India.
primary data was collected from 326 respondents in Uttar Pradesh and National Capital Region
The relative importance of various food purchasing criteria was estimated for four different food
categories, food and vegetables; milk and milk products; food grains and pulses; and processed
foods on 1-5 scale, The present study explored the consumer behavior for food products in India

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from different perspectives. People accepted the fact that their food habits get affected with the
shifting to a new region but many basic buying and consumption behavior do not change. Some
of the changes in buying and consumption behavior of relocated people, which were observed
after their settlement to a new region, were not significantly different from the level of changes
in behavior of non-moving people. However, compared to the last 10 years, people have started
preferring more healthy foods and are willing to try out new dishes. They tend to learn cooking
and eating new food items after relocation without discontinuing their traditional food items.
There is also influence of children on the type of food items that they eat.

Deliya Mitul & Parmar Bhavesh (2012) has studies the “Role of Packaging on Consumer
Buying Behavior – Patan District”. The aim of this article is to get the A study to point towards
role of packaging on consumer buying behavior. The basic purpose of this it is to find out how
such factors are behind the success of packaging. The purpose of this research is to know the
relationship between independent variable and dependent variables. The research is based in
Patan District of Gujarat (India). The packaging is the most important factor. The consumer
buying behavior is dependent on the packaging and on its features. Packaging elements like
Packaging color. Background Image, Packaging Material, Font Style, Design of wrapper, Printed
Information and Innovation is taken as predictors. Due to increasing self-service and changing
consumers’ lifestyle the interest in package as a tool of sales promotion and stimulator of
impulsive buying behavior is growing increasingly. So package performs an important role in
marketing communications, especially in the point of sale and could be treated as one of the most
important factors influencing consumer’s purchase decision.

Mor .Kiran & Sulekha (2013) In India more than 72% population is living in villages and FMCG
companies are famous in selling their products to the middleclass households, it means rural
India is a profitable and potential market for FMCG producers. Rural consumers’ incomes are
rising and willing to buy the products which improve their lifestyle. Producers of FMCG have to
craft their marketing strategies exclusively for rural consumers. In this process they need to
understand the rural consumer buying behaviour which may differ geographically. The present

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study focuses on the understanding of rural consumer buying behavior for FMCG in Haryana.
The study stresses on the factors which the purchasing of rural consumers. The study was
conducted in four districts of Haryana namely panipat, jind, kuruksetra and gurgaon.

Qasim M. Shehbaz & Agarwal Swati (2014) studied the field of consumer behaviour towards
FMCG products. There is marvellous complication in consumer behaviour. There may be several
aspects both rational and emotional that may act mutually in influencing the purchase decision.
Deva prasana (2013 showed) importance of packaging design as a vehicle for communication
and branding is growing in competitive markets for packaged FMCG products. This research
utilized afocus group methodology to understand consumer behaviour towards such products.
C. Muthuvelayutham (2012) in his study showed that among the variables age, education level
and gender have the most significant impact on consumer‟s brand loyalty.

Donkor Jacob & Kwarteng Collins Kankam Et.al (2014) investigate consumer perceptions
and choice dimension of locally produced and imported flour in Kumasi metropolis. Specifically
the paper aimed to test the relationship among price, quality and quantity in the consumer
choice of imported flour and locally produced flour. One hundred and twenty three (123)
consumers (household and commercial) of flour participated in the study. The research also
revealed that, respondents disagreed that locally produced flour is of higher quantity than
imported flour. In spite of the fact that the study found Price as major determinant factor in
influencing the purchasing decision of consumers for flour, the relationship among the three
variable prices, quality and quantity as shown by the correlation analysis is weak.

Kumar A,H. Hemanth & S.Franklin John (2014) conducted a study is to investigate internal
and external influences on consumers purchasing decisions on cosmetic products in Tamil nadu
and Kerala. The purpose of this study is To Find how consumer buying behavior factors
influence Consumers when purchasing cosmetic products.and to study the influence of Income
Level of the respondents on consumer buying behavior dimensions.

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B.V.N.G. ChandraSekhar(2012) conducted a study on fmcg products Within the broad
framework of marketing, consumer behavior is the most interesting area and one concerned
with understanding why an individual consumer acts in certain consumption related ways. The
complexity of behavior, however, varies with the nature of the product and need. While buying
a product to satisfy an individual need do the Brand plays an important role or not, In this
regard a study has conducted in rural areas to know the importance of Brand in consumer
buying behavior of FMCG goods.

Table 3.2 Literature review Summary Table

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 Paper title &Year
S.No Author of Publication Research Methodology Conclusion
objective
1. BroadbridgRetail-brand baby- To Find how Qualitative and This research
products: What do
e Adelina consumer behaves quantitative research investigated
consumers think?
& Morgan (2007) when purchasing techniques was consumer
Henry cosmetic products. adopted. perceptions of
baby-care products.

2. Hysen Analysis of The aim was to The information from This survey shows
Bytyqi & consumer develop the dairy interview was thatdairy companies
Mensur behavior in regard sector and using collected and put more emphasis
Vegara to Dairy products fresh milk as a inserted directly in on effective
(2008) in Kosovo(2008) promoter. questionnaire marketing policy.
3. Nuntasaree A MODEL OF The chief purpose of . A convenience This study implies
S. and E MALE CONSUMER the research is to sample with a that TRA can be
Barry BEHAVIOUR IN examine the shopping mall successfully applied
BUYING SKIN CARE phenomena of male intercept technique to Thai male
PRODUCTS IN consumer behaviour was employed for the consumers.
THAILAND (2008) . sampling method.
4. Gupta “Consumer To Know about A Descriptive The outcome of this
Kriti Behavior towards consumers’ Research Design was study is vital to
Bardhan , Functional Foods consciousness of deliberated as most functional food
Khadke in India- (2009). food components. suitable for this developers .
et.al research.

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5. Deliya CONSUMER Important attribute This research was The research work
Mitul & BEHAVIOR in research conducted through has been
Parmar TOWARDS THE Convenience, Brand Exploratory research successfully
Bhavesh NEW PACKAGING Name, Aesthetic, as well as Descriptive completed and it
OF FMCG Information. research. has helped us to
PRODUCTS(2012) understand the
mindset of the
consumers

6. Mor .Kiran An Investigation of The main objective For this data has It can be concluded
& Sulekha Consumer Buying of the present stud y been collected that FMCG
Behavior for is to identify the through primary companies make
FMCG: An factor responsible survey and for that such marketing
Empirical Study of for consumer buying structured strategies which
Rural Haryana behavior of rural questionnaire has create a favorable
Haryana. (2013) consumers for been designed to get environment for
FMCG in Haryana. the responses of rural consumers.
consumers.
7. Qasim M. Consumer I. To examine This research is It was found that
Shehbaz & Behaviour towards consumers descriptive in nature the most important
Agarwal selected FMCG preference towards as the study aims to choice is taste
Swati (Fast Moving various non- find out the motive, followed by
Consumer Goods) alcoholic beverages. consumer behaviour health aspects, so
in Delhi NCR . II. To analyse about FMCG marketers should
(2014) motives of different product.The study is pay strong attention
age group for carried out the to this fact in
selection of non- naturalistic designing their
alcoholic beverages. observation marketing channels
preceded by health
aspects.

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8. Donkor CONSUMER the paper aimed to The research The study revealed
Jacob & CHOICE test the relationship methodology that influence of
Kwarteng DIMENSION OF among price, quality involves the method price on purchasing
Collins LOCAL AND and quantity in the used in collecting decision was high. it
Kankam IMPORTED FLOUR consumer choice of data . It a includes indicates that the
Et.al (2014) imported flour and the presentation and influence of price on
locally produced analysis of data. Data purchasing decision
flour. for the study was of flour was present
gathered from both and consumers
primary and preferred both
secondary sources. imported and locally
produced flour.
9. Kumar A Study on factors The purpose of this The instruments of After analysis they
A,H. influencing study is to this study involved found that small
Hemanth consumer buying investigate internal two parts: the first differences exist in
& behavior in and external section of the the income level
S.Franklin cosmetic influences on instrument consisted that implies
John
Products .(2014) consumers of forced-choice different groups
purchasing questions about prefer or opinion
decisions. demographic differs on consumer
characteristics: buying behavior.
gender, marital
status, age,
occupation, monthly
income level. The
second section
variables chosen for
this study in order to
measure the
influence of
consumer buying

23
 behavior
10. B.V.N.G. Consumer Buying i) To study does the To study the i) Brand names
ChandraSek Behaviour and brand play a role in importance of Brand should be simple,
har Brand Loyalty in the purchase consumer Buying small and easy to
Rural Markets: behavior of rural Behavior of FMCG remember and
FMCG(2012) customers ii)To goods in rural areas, pronounce
study on which the primary data was ii) Effective IMC is
categories/products collected with the required to reach
does brand play a help of a structured remote villages.
role iii) To identify questionnaire.
the presence and
the importance of
local brands.

3.3 Scope Of The Study:

The Study covers the consumer behavior for FMCG Product at ITC Limited, jaipur.ITC
Aashirwad has one store in prime location of pink city.The study however focuses on branch of
ITC Aashirwaad located in C Scheme Jaipur.
The scope of the study will be to understand the consumer buying behavior towards FMCG
product carried at ITC Limited. This study helps to the candidates to know about the consumer
buying behaviour and its influencing factor and also to know about the consumer buying
behaviour pattern of their product.

24
3.4 OBJECTIVES OF THE STUDY
 To know the consumer buying behavior of the FMCG Products with reference to
Aashirwaad flour of ITC Ltd.
 To identify the nature of competition exists for the Product in the FMCG industry.
 To analyse the distribution of Aashirwad flour in Jaipur city.
 To know about the flour industry.
 To find the factors influencing the customer buying behavior of Aashirwaad flour at ITC
Ltd.
 To study the impact of advertisement on consumer.

RESEARCH METHODOLOGY
Research Methodology is a blue print of the Study conducted. The purpose of this chapter is to
focus on the methodology of the study and the process and methods according to which the
research was executed. The outline of this chapter includes the statement of the research
problem, the Objectives of the Study, Hypothesis to be tested, the type of Research Design and
related methodology i.e. tools and procedures which included the population of the study,
sampling procedure and sample size, conceptualization of the main concepts, data collection
techniques and data analysis techniques of the study.

This chapter outlines the research method used for this study, which includes data collection,
sample selection, type and contents of questionnaire, processing of data and finally interpretation
of the data. The study embraces both qualitative and quantitative research approaches.
3.5 Research Instrument:

Questionnaire is the research instrument used here.

3.6 Sample Design:

A sample design is made up of two elements.

25
 Sampling method. Sampling method refers to the rules and procedures by which some
elements of the population are included in the sample. Some common sampling methods
are simple random sampling , stratified sampling , and cluster sampling .

 Estimator. The estimation process for calculating sample statistics is called the estimator.
Different sampling methods may use different estimators.

3.6.1Sampled Population For The Study

A population is a group of individuals, object or items from which samples are taken
for measurement. All items in any field of enquiry constitute the universe. Here
populationrefers to the number of consumers and retailers who are using and selling
various pens.The sample population includes people from various categories like
Business Person,Service Person, Student, Housewife's Etc.

3.6.2 Sampling Area

It is the place where the sample is drowned. Here the researchers take samples from
various parts of Jaipur city.

3.6.3Sample Size
The number of sampling unit selected from the Population is called the size of the
sample.The sample size selected was 5 0 r e s p o n d e n t s

3.6.7 Sample Procedure:

In the study we will do simple random sampling.
A random sample is a sample that is chosen randomly. It could be more accurately called
a randomly chosen sample. Random samples are used to avoid bias and other unwanted
effects.
 A simple random sample is a subset of a statistical population in which each
member of the subset has an equal probability of being chosen.

3.6.8 METHODS OF SAMPLE DESIGN

1) Data Collection ( primary & secondary).
2) Graphical representation.

26
 3) Data representation.
4) Select different market of Jaipur.

Method of Data Collection

The data has been collected in two ways.

Primary Data
: Primary data are those, which are collected for the first time, and theyare original in character.
A suitable combination of Questionnaire techniques, &discussion with the respondents was used
to collect the required primary data.Primary data gives higher accuracy and facts, which is very
helpful for any research and its findings.
The researcher has collected primary data from questionnaire (i.e.) personal interview.

Secondary Data: -
The secondary data are those, which are already collected bysomeone for some purpose and are
available for the present study. Secondary datawas collected from the magazines, websites, and
other such sources.

3.6.9 Source of Data Collection:

The study is based on analysis and interpretation of a questionnaire which
was distributed to 50 respondent. The survey included open and close ended
questions. The information about the new respondent who are open the shop
recently or in few days.

3.6.10 Collection Of Data:

For collection of primary data we went to the different market of Jaipur city. For collection of
primary data. We prepared a questionnaire to know about the research. In this we meet the 100
respondents & ask them different-2 question to complete the objective that we have to done in
the research objective. In collection of primary data we use ITC website, news paper ITC report,
market trend, magazine article & other related information to complete the objective of research.

3.6.11 STATISTICAL TOOLS USED

PERCENTAGE METHOD
In this project percentage method test and used. The following are the formula

Percentage of Respondent = No. of Respondents/ Total no. of Responden x 100

27
3.6.12 Data Tools & Techniques
Pie Charts, graphs, diagrammatic presentation and tables was used as Statistical tools in the
study to analyse the consumer behavior towards aashirvaad flour.

Tools: MS EXCEL is used for the study.

4.1 DATAANALYSIS AND INTERPRETATION

The Analysis of data involves identifying the relations of quantified information to the research
problem in hand. Here percentage analysis is the tool for analyzing the data and establishing a
relationship between the information gathered and the research problem.

INTERPRETATION
The process of drawing inferences from the analyzed data in a research process is called as
interpretation. It refers to the technique of drawing inference from the collected facts and

28
explaining the significance of those inferences after an analytical and experimental study. It is a
search for broader and more abstract means of the research findings.

.1 CONSUMER BUYING BEHAVIOUR QUESTIONNAIRE ANALYSIS

SAMPLE SIZE DETAILS:
Sample Population: Business Person, Service Person, Student, Housewife's Etc.
Sample Size: 50 Consumers

Q.1 Which kind of flour do you use regularly?

Table 4.1 Types of Flour using by consumers
Sl.
No Category Number
1. Wheat Atta 46%
2. Multigrain Atta 18%
3. Sugar control 12%
4. Fortified Atta 8%
5. Others 16%
Source: Primary data

Others; 16.00%
Fortified Atta; 8.00%
Wheat Atta; 46.00%
Sugar control; 12.00%

Multigrain Atta; 18.00%

Figure 4.1 Types of Flour using by consumer

Inference:
It Can be revealed that 46%f the respondents use Wheat Flour. And the next best usage is of
Multigrain Atta by 18%,Other flour are used by 16%.Sugar control and fortified Atta are least
preferred by the consumers in the modern or present market condition.
- Majority of the consumers prefers and uses wheat flour than any other type of flour.

29
Q.2 Which brand of flour do you purchase?

TABLE 4.2 Most Preferred brands

Sl.
No Brand Number
1. Aashirvaad 38%
2. Shaktibhog 20%
3. Lakshmibhog 8%
4. Patanjali 16%
5. Others 18%
Source: Primary data

Others; 18.00%
Aashiwaad; 38.00%
Patanjali; 16.00%

Lakshmibhog; 8.00%
Shaktibhog; 20.00%

Fig.4.2 Most Preferred brands

Inference: From the above chart it has been analysed that majority of the consumers(i.e.) 38% of
them prefer Aashirvaad as a brand to be used which is followed by Shaktibhog , Patanjali&
Others by 20%, 16% & 18% responses whereas lakshmibhog flour is used by 8% only.
- Aashirvaad flour is the most preferred brand among consumers than its competitors.

Q.3 From where do you purchase flour?

TABLE 4.3 Places Of Purchase

30
 Sl.
No Type Number
1. Supermarket 40%
2. Local Kirana 32%
Shop
3. Local Mill 12%
4. Online 6%
5. Others 12%
Source: Primary data

Others; 11.76%
Online; 5.88%
Local Mill; 11.76% Supermarket; 39.22%

Local Kirana Shop; 31.37%

Figure.3 Places of Purchase

Inference:
- It can be analysed from the above graph that out of the total responses, 39% prefer
supermarket as their place of purchase.

Q.4 What is important for you when buying flour?

TABLE 4.4 FACTORS INFLUENCING BUYING DECISION

Sl. No Characterstics Number

1 Price 14%
2 Brand Value 16%
3 Family Loyalty 4%
4 Certified by reputed 6%
agency
5 Quality 40%
6 Packaging 12%
7 Availability at nearby 8%
stores

31
 Source: Primary data

Availability at nearby stores; 8.00%

Packaging; 12.00% Price; 14.00%
Brand Value; 16.00%

Family Loyalty; 4.00%

Certified by reputed agency; 6.00%
Quality; 40.00%

Chart 1.4 FACTORS INFLUENCING BUYING DECISION

Inference: From the above graph that it can be identified that 40% of consumer‟s
buyingdecisions are influenced by quality. The price and brand value of flour have 14%
and16% influence on buying decision.

Q.5 What quantity of flour do you generally prefer to buy?

TABLE 4.5 Quantity Of Flour

Sl. No Quantity Number

1 1 kg 4%
2 2kg 16%
3 5kg 24%
4 10kg 38%
5 40kg 18%
Source: Primary Data

32
 Figure 4.5 Quantity Of Flour
40kg; 18.00% 2kg; 16.00%
1kg; 4.00%

5kg; 24.00%
10kg; 38.00%

Inference
- It can be analyzed that 38% of the consumers prefer to buy 10kg flour and 24% of the
consumer use 5kg flour.
Whereas the next most preferred quantity is 40kg &2kg flour. And 1kg flour is least preferred by
the consumers.
- Consumer mostly favors and prefer their Quantity of 10kg.

Q.6 . Which advertising media influence you the most?

TABLE 4.1.6Types Of Advertising Media

Sl. No Media Type Number

1 Television 36%
2 Banner & Hoardings 30%
3 Newspaper 6%
4 Internet 8%
5 Word of Mouth 20%
Source: Primary Data

33
 Types Of Advertising Media

Word Of Mouth; 20.00% Television; 36.00%

Internet; 8.00%

Newspaper; 6.00%

Banner & Hoarding; 30.00%

Inference: It can be concluded that having almost 36% of the responses are influenced by
Television. The next most influencing media is Newspaper impacting the buying decision.
Banners & hoarding , word of mouth , and internet is the least influencing among all media.
TV Ads are the most influencing Ad impacting the buying decision of different consumer
segments.

Q.7 How much you like this brand?

Table 4.7 Opinion of customer

Sl No. Response Number

1 Strongly Like 44%

2 Do Not Like 4%
3 Strongly don,t Like 2%
4 Like This brand 28%
5 Neutral 22%
Source: Primary data

34
 Opinion Of Customers

Neutral; 22.00%
Strongly Like; 44.00%

Like ; 28.00%
Strongly don,tLike; 2.00% Do not like; 4.00%

Inference: It can be revealed that almost 44% users strongly like this brand, 4% and 2% of the
respondents don,t like this brand.

Q.8.Have you purchase Aashirwaad atta?

Table 4.8 Number of customers who have used Aashirvaad flour

Sl No. Response Number

1 Daily 6%
2 Weekly 30%
3 Monthly 36%
4 Yearly 8%
5 Never 20%
Source:Primary data

35
 No. of customers who have used Aashirvaad Flour

Never; 20.00% Daily; 6.00%

Weekly; 30.00%
Yearly; 8.00%

Monthly; 36.00%

Figure 4.8

Inference:It can be concluded that 36% of respondents have used Aashirvaad Flour On
monthly basis and 30 % of respondents used this flour on weekly basis. Majority of respondents
used Aashirvaad flour on monthly basis.

Q.9 Give a Rank the brand of flour according to your preference.

Table 4.9 Rating Of Brand Performance

SI NO. BRAND 1ST 2ND 3RD 4TH 5TH
1 Shaktibhog 7 15 18 4 7
2 Aashirvaad 19 10 13 4 4
3 Patanjali 11 3 7 14 4
4 Lakshmibho 5 9 9 19 8
g
5 Others 5 1 2 6 36

36
 Rating of Brand Performance
6

Axis Title 3

0
Shaktibhog Aashirvaad Patanjali Lakshmibhog Others

Figure 4.9

Inference: It is visualized that 19 respondents has given first rank and 10 gave
Rank 2nd to Aashirvaad flour. Lakshmibhog brand is the least preferred brand among
consumers.

Q.1010Why do you purchase the same brand?

Table 4. 10 Reason for brand loyalty

Sl.
No Category Number
1. High quality 44%
2. Brand Image 20%
3. Easy availability 18%
4. Value for money 14%
5. Others 4%
Source: Primary data

37
 Reason for brand loyalty

Others; 4.00%
Value for money; 14.00%
High quality; 44.00%
Easy availability; 18.00%

Brand image; 20.00%

Figure 4.1.10

Inference: It can be revealed that 44 % of respondent’s reason for brand loyalty is its high
quality. Easy availability and Brand image are the next reasons.

Q.11 Is this brand is trustworthy?

Table 4.11 Loyalty of brand

Sl No. Response Number

1 Strongly agree 48%

2 Disagree 6%
3 Agree 32%
4 Strongly disagree 8%
5 Others 6%
Source: Primary data

38
 Loyalty of Brand

Others; 6.00%
Strongly disagree; 8.00%

Strongly agree; 48.00%

Agree; 32.00%

Disagree; 6.00%

Figure 4..11

Inference: It can be concluded that 48 % customers trust this brand. And 6% respondents
disagree with the loyalty of this brand. So majority of the customers trust this brand

FINDINGS:

39
There were a lot of different findings that came via this project report . Some of those finding
are as follows :
After conducting the consumer buying behavior towards aashirvaad flour in Jaipur city,we find
that,

 It can be identified that Wheat flour is preffered most by the consumers as compared to
all other flours.
 Aashirvaad brand enjoys the market leader position and is also preferred by the
majority of the consumers as compare to other brands.
 Most of the consumers prefer buy flour from supermarket .
 It has been found that Quality of a flour is the most influencing factor for consumer
buying decision.
 Most of the consumers generally prefer to buy10 kg flour on an average basis.
 The Study revealed that 36% of the consumer are influenced by Television
advertisement are the most influencing media for customers to buy flour.
 Amongst the surveyed customers only 36% use aashirvaad flour on monthly basis.
 Aashirvaad flour is highy ranked among all the different brands.
 Though there is no strong brand loyalty towards any brand ,high quality can make the
customers to purchase the same brand.
 We also find that packaging of Aashirvad is that better than its competitor.

40
 CONCLUSION
The project entitled “A Study of the Consumer Buying Behavior of FMCG
product ”has helped in studying the various aspects of consumer behavior
especially towards flour.

The study also helped in understanding and analyzing customer satisfaction about
services and products offered to customers. Every player in the flour industry is
trying to cover more market share than the other. So the company must be more
alert providing high quality service and awareness to customers.
The researcher hope the company will find his findings relevant and sincerely
hope it uses his suggestions enlisted, which he hopes will take them miles ahead
of competition.

41
 SUGGESTION

These are the following suggestions:-

Company should decrease the rate of aashirvaad.

Company should more work on advertising of aashirvaad.

Company should also work for its distribution.

Company should reduce the awareness of people about itc.

Company should start many scheme & offer to increasing of aashirvaad.

Company should also analysis its competitors strategy.

42
 LIMITATIONS

A research study is never perfect. There is always some scope of improvement in

the study in the future. Thus, it becomes important to critically evaluate the results
and the whole study. The present study has certain limitations that need to be taken
into account when considering the study and its contributions:

1.There a number of a factor, which affects consumers perception about flour and
is not possible to take all of them into account. Thus, this study is limited to
variable under consideration.

2.The research is based on the responses given by the respondents, which may or
may not be biased.

3.The results shown are relative in nature and are not absolute. In other words, it is
the perception of an average customer.

4.The research study was conducted within the limited duration of time. So a
detailed and comprehensive study could not be made.

The study is limited.

The study is limited to some areas of Jaipur city.

No proper data was available about the stores in the city of Jaipur.

As the nature of research was exploratory so it was difficult to cover each and
every consumer.

During research cost, time, resources and information are major constraints. The time frame for
the research was very limited.

The customers were not available most of the time when the survey was conducted outdoor.

The customers were reluctant and skeptic to answer the questions.

43
Future Plans for the study:
Today, the Aashirvaad brand stands for atta and salt and is expected to add
suji, spicesand rice in the staples segment. In the ready-to-eat segment, Aashirvaad
has beenexpanding the range and the latest offering includes its combo packs of
rice and gravies.Besides, an all-purpose curry paste has also been included in the
range. To make asuccess of any foods business, apart from understanding the
palate, it would be procurement and sourcing which have to deliver on two fronts:
mainly that of quality andefficiency.As for its ready to eat category Kitchens of
India (KOI), the company’s strategy is to expand the KOI product porfolio. In this
category, the company plans to introduce new products to meet the evolving needs
of consumers. This premium brand is targeted attourists, consumers who order at
home, NRIs and women in the age group 25 plus.

44
 Bibliography
Research Papers:
 Gupta Kriti Bardhan (2009), consumer behaviour for food products in India, 19th annual
world symposium Indian institute of management.
 Nuntasaree S and Barry E. (2008), a model of male consumer behavior in buying skin
care products in Thailand, ABAC Journal Vol. 29, No. 1
 Mor .Kiran & Sulekha (2013) An Investigation of Consumer Buying Behavior for
FMCG: An Empirical Study of Rural Haryana Haryana.
 Deliya Mitul & Parmar Bhavesh (2012). “Role of Packaging on Consumer Buying
Behavior – Patan District” Global Journal of Management and Business Research,
Volume 12 Issue 10 Version 1.0 June 2012.
 Broadbridge Adelina & Morgan Henry (2007), consumer buying behavior and
perception .
 Hysen Bytyqi, Mensur Vegara (2008) , analysis of consumer behavior in regard to dairy
products in Kosovo, Agric. Res., 2008, 46(3)
 B.V.N.G. ChandraSekhar (2012) Consumer Buying Behaviour and Brand Loyalty in Rural
Markets: FMCG
 Kumar A,H. Hemanth & S.Franklin sJohn(2014) A Study on factors influencing
consumer buying behavior in cosmetic Products.
 Donkor Jacob & Kwarteng Collins Kankam Et.al (2014)Consumer Choice
Dimension Of L ocal And Imported Flour.
-Webliography:
 www.scribd.com
 Wikipedia.org/wiki/itcLimited
 www.itcportal.com
 mbaskool.com
 www.slideshare.net
 www.economywatch.com
 www.google.com

45
 www.researchomatic .com
 www.shodhganga.com
Books
 Chopra Dr. P.k Publisher : Dream Tech press.,2011 Edition
 Kotler Philip ,12th Edition -2006 By Pearson education
 Ghosh k., Anmol Publications pvt ltd ,New Delhi, Edition 1999.

46
 QUESTIONNAIRE
Dear Respondents.
As part of the curriculum, I was required to do a research on consumer buying behavior for
FMCG products. I need to ask some important questions in this regard, and I would be taking
some of your valuable time.
Name of the respondent:
Age:
Gender:
1.Which kind of flour do you use regularly?
a) Wheat Atta d)Fortified Atta
b)Multigrain Atta e)Others
c)Sugar release control

2.Which brand of flour do you purchase?

a) Aashirwaad d) Patanjali
b)Shaktibhog e) Others
c)Lakshmibhog

3.From where do you purchase flour?

a)Supermarket d)Online
b)Local kirana shop e)Others
c)Local mill

4. What is important for you when buying flour?

a)Price e)Quality
b)Brand value f)Packaging
c)Family loyalty g) availability at nearby stores
d) Certified by reputed agency
5. What quantity of flour do you generally prefer to buy?
a)1 kg d)10 kg

47
b)2 kg e) 40 kg
c)5 kg

6. Which advertising media influence you the most?

a)Television d)Internet
b).Banner and hoarding e).word of mouth
c).Newspaper

7.Have you purchase Aashirwaad atta?

a)Daily d) Yearly
b)Weekly e)Never
c) Monthly

8.How much do you like this brand?

a)I strongly like this brand d)I like this brand
b)I do not like e) Neutrals
cI strongly don,t like

9 Give a Rank the brand of flour according to your preference.

a)Shaktibhog d)Lakshmibhog
b)Aashirwaad e)Others
c)Patanjali

10Why do you purchase the same brand?

a)High Quality d)Value for money
b)Brand image e)Others
c)Easy availability

11Is this brand is trustworthy?

a)Strongly agree d)Strongly disagree
b)Disagree e)Others
c)Agree

48
49