“AFFECT OF BRANDING ON CONSUMER PURCHASE DECISION IN FMCG

GOODS AND DURABLE GOODS”

INTRODUCTION

What is a BRAND?

Brand recognition and other reactions are created by the use of the product or service and
through the influence of advertising, design, and media commentary. A brand is a
symbolic embodiment of all the information connected to the product and serves to create
associations and expectations around it. A brand often includes a logo, fonts, color
schemes, symbols, and sound, which may be developed to represent implicit values,
ideas, and even personality.

Concepts

Marketers engaged in branding seek to develop or align the expectations behind the brand
experience, creating the impression that a brand associated with a product or service has
certain qualities or characteristics that make it special or unique. A brand image may be
developed by attributing a "personality" to or associating an "image" with a product or
service, whereby the personality or image is "branded" into the consciousness of
consumers. A brand is therefore one of the most valuable elements in an advertising
theme. The art of creating and maintaining a brand is called brand management. A brand
which is widely known in the marketplace acquires brand recognition. When brand
recognition builds up to a point where a brand enjoys a critical mass of positive sentiment
in the marketplace, it is said to have achieved brand franchise. One goal in brand
recognition is the identification of a brand without the name of the company present. For
example, Disney has been successful at branding with their particular script font
(originally created for Walt Disney's "signature" logo) which it used in the logo for
go.com. "DNA" refers to the unique attributes, essence, purpose, or profile of a brand
and, therefore, a company. The term is borrowed from the biological DNA, the molecular
"blueprint" or genetic profile of an organism which determines its unique characteristics.

Brand equity measures the total value of the brand to the brand owner, and reflects the
extent of brand franchise. The term brand name is often used interchangeably with
"brand", although it is more correctly used to specifically denote written or spoken
linguistic elements of a brand. In this context a "brand name" constitutes a type of
trademark, if the brand name exclusively identifies the brand owner as the commercial
source of products or services. A brand owner may seek to protect proprietary rights in
relation to a brand name through trademark registration.

Brand energy is a concept that links together the ideas that the brand is experiential; that
it is not just about the experiences of customers/potential customers but all stakeholders;
and that businesses are essentially more about creating value through creating meaningful
experiences than generating profit. Economic value comes from businesses’ transactions
between people whether they be customers, employees, suppliers or other stakeholders.
For such value to be created people first have to have positive associations with the
business and/or its products and services and be energised to behave positively towards
them – hence brand energy. It has been defined as "The energy that flows throughout the
system that links businesses and all their stakeholders and which is manifested in the way
these stakeholders think, feel and behave towards the business and its products or
services." Attitude branding is the choice to represent a feeling, which is not necessarily
connected with the product or consumption of the product at all. Marketing labeled as
attitude branding includes that of Nike, Starbucks, The Body Shop, Safeway, and Apple
Inc.

"A great brand raises the bar -- it adds a greater sense of purpose to the experience,
whether it's the challenge to do your best in sports and fitness, or the affirmation that the
cup of coffee you're drinking really matters." - Howard Schultz (CEO, Starbucks Corp.)

The act of associating a product or service with a brand has become part of pop culture.
Most products have some kind of brand identity, from common table salt to designer
clothes. In non-commercial contexts, the marketing of entities which supply ideas or
promises rather than product and services (e.g. political parties or religious organizations)
may also be known as "branding".

OBJECTIVE of PROJECT work

Main Objective:-

The main objective of research is to analysis how the brand effects the customer
purchasing decision in FMCG goods and durable goods

Sub Objective:-

The sub objective of research is to understand the choice of the customer is branded or
non-branded goods.

Justification for choosing A PARTICULAR research proposal

Branding can be viewed as a tool to position a product or a service with a consistent

image of quality and value for money to ensure the development of a recurring preference
by the customer. It is common knowledge that the consumer’s choice is influenced by
many surrogates of which the simplest one is a brand name. Although there may be
equally satisfying products, the consumer when satisfied with some brand does not want
to spend additional effort to evaluate the other alternative choices. Once he or she has
liked a particular brand, he or she tends to stay with it, unless there is a steep rise in the
price or a discernible better quality product comes to his/her knowledge, which prompts
the consumer to switch the brand.

Companies spend a lot of money and time on the branding and thus it needs a careful
evaluation on the effect of branding on consumer buying behavior.

QUESTIONNAIRE

1. Are you a brand loyal customer?

| Yes | No
Which attributes did attract you to purchase branded products? Rank these attributes in
order of their importance to you.

| Brand Name | Transparent

| Price | Cleanliness

| Easy Availability | Others

What was the reason for the delay between the purchase decision and the actual
purchase?

| Financial constraints

| Waiting for more innovative product

| Waiting for market response

What influenced you to buy the above stated brand(s) ?

| Advertising | Shop Display

| Word of mouth | Family/Friend/Relatives

| Attractive packaging | Any Other

| Dealer
Influence of Brand name on purchasing decision

| Agree | Disagree

| Strongly Agree | Strongly disagree

6. Influence of Quality on Purchase Decision

| Agree | Disagree

| Strongly Agree | Strongly disagree

7. Influence of Price on Purchase Decision

| Agree | Disagree

| Strongly Agree | Strongly disagree

Influence of Product features on Purchase Decision

| Agree | Disagree

| Strongly Agree | Strongly disagree

Influence of Family members on Purchase Decision

| Agree | Disagree

| Strongly Agree | Strongly disagree

Influence of Peer group on Purchase Decision

| Agree | Disagree

| Strongly Agree | Strongly disagree

11. Influence of Advertisement on Purchase Decision

| Agree | Disagree

| Strongly Agree | Strongly disagree

12. Will you like to switch your brand preference if you get some promotional scheme
with another brand?

| Yes | No

13. Do you think branded products are better than unbranded products?

| Yes | No

NAME OF THE RESPONDENT:

ADDRESS:
EDUCATIONAL QUALITICATION:

OCCUPATION:

AGE:

MONTHLY INCOME:

Project Description :

Project Report on Internal Customer Satisfaction

INTRODUCTION

Customer is the king, this is all the more apt for today's business environment where, all
other factors remaining more or less constant, it is the value addition to the customer that
is making all the difference.

Customer satisfaction depends on the performance relative to a expectations.

A key premise in customer satisfaction is understanding the needs and meeting or

exceeding the expectations of customers. Further more, this is done while optimally using
resources. While most companies have developed strategies to improve quality and
external customer service, internal customer satisfaction is a much neglected component
of quality improvement. To this end, it is important to emphasize that total customer
satisfaction can be attained only if all employees devoted to external customer
satisfaction can work together and assist each other to achieve the common objective,
when the internal customer isn't satisfied, Relationships with the external customer suffer.
So, it is suggested to adopt customer oriented approach to keep the internal customer
satisfied and motivated, who in turn will focus their attention and energy upon meeting
the requirements of their customers, thereby maximizing the customer, thereby
maximizing the customer satisfaction.

Customer satisfaction survey is the process to monitor the satisfaction quotient of their
people. In internal satisfaction surveys therefore tracks the return on your investments in
keeping your people happy, high salaries, a quality culture, a healthy work environment.

Last, but not the least internal customer satisfaction survey helps in finding the critical
areas, which need further improvement.
Need of Internal Customer Satisfaction Survey arises due to following reasons.

Ø Rapidly growing organization.

Ø High or growing turnover rate.

Ø Excessive rumor's

Ø Highly competitive industry.

Ø Planned and recent organizational changes.

BENEFITS OF A INTERNAL CUSTOMER SATISFACTION SURVEY

Ø It creates better teamwork and much improved work process.

Ø It leads to higher output and superior quality product.

Ø It decreases the turnover.

Ø Reduced overheads, and increase customer satisfaction level's inter departmental.

Ø It enhance communication and hence helped in team building, hence there is less
wasted effort caused by lack of common purpose and poor communication.

Ø A good employee feedback survey improves employee attitude and boosts morals.
INTERNAL CUSTOMER-SUPPLIER RELATIONSHIP

In an organization, from procuring an order to delivering the final product, a series of

activities takes place. There are different deptts. To which these activities are assigned eg.
Raw material for production is purchased by one deptt. And supplied to other deptt.
Where the production initiates. Thus every deptt. play an important role of a customer
and supplier as well.

The importance of a customer is well known from the maxim, “ Customer is the
king”. Earlier, organizational administrators concentrated only on the satisfaction of
external customers i.e. the target market. But now it is being realized that if the internal
customer is satisfied the quality as well as the quantity is also appreciable. Higher the
customer satisfaction index, higher will be the quality of the production. This results in
the satisfaction of external customers and ultimately brings profits & prosperity to the
organization. It can benefit the organization in following ways:-

1) There will be less employee turnover.

2) Optimum utilization of available resources will take place.

3) High job satisfaction and feeling of belongingness in employees.

4) Qualitative product.

5) Least conflicts in the departments.

6) Good reputation in the market and many more benefits can be accrued.

Thus, every deptt. should ensure that the customer deptt. is satisfied with the product and
services provided by it as it will result into an overall improvement of the organization.

To serve a final customer first of all a company has to satisfy his employees. If
employees are satisfied then they will ultimately satisfy the final customer. Three types of
marketing arises. These are a follows:-

1) Internal marketing:

It is defined as when company communicates its policies to the employees. In this

understands their employees & provides good working condition, compensation and
incentives so as to satisfy their employees. Company satisfy their employees because
they are the person in touch with the final users.

2) External marketing:

When company communicates with its final end user regarding the product complaints &
suggestions so as to satisfy them.

3) Interactive marketing:

In this employees communicate company product to its final end users.

INTRODUCTION TO CUSTOMER SATISFACTION

Today’s companies are facing their toughest competition ever. These companies can
outdo their competition if they can move from product and sales philosophy to a
marketing philosophy. We spell out in detail how companies can go about winning
customers and outperforming competitors. The answer lies in doing a better job of
meeting and satisfying customers needs. Only customer-centered companies are adept at
building customers, not just building product. They are skilled in market engineering, not
just product engineering.
 Too many companies think that it is the marketing/sales department’s job to
procure customers. If that department cannot, the company draws the conclusion that its
marketing people aren’t very good . but in fact, marketing is only one factor in attracting
and keeping customers. The best marketing department in the world cannot spell products
that are poorly made or fail to meet anyone’s need. The marketing department can be
effective only in companies whose various departments and employees have designed
and implemented a competitively superior customer value-delivery system.

Although the customer oriented firms seek to create high customer satisfaction, its
main goal is to maximize customer satisfaction ,first the company can increase customer
satisfaction by lowering its prices, but results may be lower profits second the company
might be able to increase prices. Third the company has many stake-holders including
employees, dealers, suppliers and stock holders spending more to increase customer
satisfaction might divert funds from increasing the satisfaction of other partner. Estimate
the company must operate on the philosophy that it is trying to deliver a high level of
satisfaction to the other stake-holder within the constrains of its resources. From the past
studies of last three decades we observed that the company’s first task is to create and
satisfy customers. But today’s customers face a vast array of product and brand choice
prices and suppliers.

It is generally believed that customers estimate which offer will deliver the most
value customers are like value maximizes, within the bounds of search costs and limited
knowledge, mobility income, they form an expectation of value and act on it, whether or
not the offer lives up to the value expectations affects customer’s satisfaction and their
repurchase probability.

CUSTOMER VALUE

Customer delivered value is the difference between the total customer value and total
consumer cost. Consumer value is the bundle of benefits customers expect from a given
product or service. Total consumer cost it the bundle of costs consumer expect to incur in
evaluating, obtaining and using the product.

That two customers can report being “highly satisfied” for different reasons. one
may be easily satisfied most of the time and other might be hard to please but was
pleased on this occasion. Companies should also note that managers and salespeople can
manipulate their ratings on customer satisfaction. They can be especially nice just before
the survey. They can also try to exclude unhappy customers from the survey. Another
danger is that if customers will know that the company will go out of its way to please
customers, some customers may express high dissatisfaction (even if satisfied) in order to
receive more concession.

DELIVERING CUSTOMER VALUE AND SATISFACTION:

The value chain is a tool for identifying ways to create more customer value. every
firm is a collection of activities that are performed to design, produce, market, deliver and
support its product. The value chain identifies nine strategically relevant activities that
create value and cost in a specific business. These nine value-creating activities consist of
five primary activities and four support activities.

INTERNAL RECORD SYSTEM

Marketing managers rely on internal reports on orders, sales, prices, cost, inventory
levels, receivables, payables, and so on. By analyzing this information, they can spot
important opportunities and problems.
THE MARKETING INTELLIGENCE SYSTEM

A marketing intelligence system is a set of procedures and sources used by

managers to obtain everyday information about developments in the marketing
environment. Marketing managers collect marketing intelligence by reading books,
newspapers and trade publications; talking to customers, suppliers and distributors;
meeting with other company mangers.

First, it can train and motivate the sales force to spot and report new developments. Sales
representatives are positioned to pick up information missed by other means.

Second, the company can motivate the distributors, retailers, and other
intermediaries to pass along important intelligence.

Third, companies can collect competitive intelligence by purchasing competitors’

products; attending open houses and trade shows; reading competitors’ publishing
reports; attending stockholders’ meeting; talking to employees, dealers, distributors,
suppliers, and freight agents; collecting competitors’ ads; and looking up news stories
about competitors on the internet.
SOURCES OF INTERNAL DATA

Sources of internal data are of two types:

1. Internal or primary data

2. External or secondary data.

Internal Sources

Company profit-loss statements, balance sheets, sales figures, sales call reports, invoices,
inventory reports and prior research reports.
External Sources

A) Government publications

B) Periodicals and books

C) Commercial data
OBJECTIVESS OF STUDY

Ø The main objective of the study is to find out the level of satisfaction among the
internal customers.

Ø To know the present status of the suppliers in terms of their supplied material &
services.

Ø To collect and evaluate ideas/views and expectations of the internal customers for
the improvement in suppliers performance.

Ø To make company's internal suppliers aware about the dissatisfaction part of their
customers.

Ø To find out the most prominent area of dissatisfaction.

Ø To enhanced the communication & co-operation between the internal suppliers and
their customers.

RESEARCH METHODOLOGY

The quality and reliability of research study is dependent on the information collected in
a scientific and methodological manner. Scientific planning of designing of research
method is a blue print for any research study. Therefore, proper time and attention should
be given in designing the plan of research. While proper definition of problem tells the
researcher where he has to go, proper design tells him how he should go. Selection of
methodology for a particular project is made easy by sorting out a number of alternative
approaches, each of them having its own advantage and disadvantages. Efficient design is
that which ensure that the relevant data are collected accurately.

The researcher has to think about what procedure and techniques should be adopted in the
study. He should arrive at the final choice by seeing that the methodology chosen for
project is indeed the best one, when compared with others.

RESEARCH DESIGN :

Research design is the first and foremost step in methodology adopted and
undertaking research study. It is overall plan for the collection and analysis of data in the
research project. Thus it is an organized, systematic approach to be the formulation,
implementation and control of research project.

Infact a well planned and well balanced research design guards against collection
of irrelevant data and achieves the result in the best possible way.
SAMPLE DESIGN :-

The universe of study being large, researcher has to resort to sampling method of
data collection. On the basis of a section of the universe selected in a prescribed manner
one is able to deduce for the universe. For the sample results to be applicable on the
universe, sample should be adequately chosen so to make it representative and reliable.

Population : General Managers in the operation.

Sample : Sample covers the respondents of 20 departments.

Ø DATA COLLECTION METHOD :

Data are the bricks with which the researcher has to make a house. While the
quality of research findings depend on data, the adequacy of appropriate data in turn
depends upon proper method of data collection. A number of methods are at the disposal
of the researcher of which one has to select the most appropriate one for visualizing the
research objective. Thus he has to see that the method adopted is compatible with the
resources and research study.

a) Primary Data : Data which are collected fresh and for the first time and thus
happens to be original in character. Primary data are gathered for specific purpose.

b) Secondary data : Data that collected from primary data i.e., they are already
exit some where. For the purpose of our study we collected both the data.

Ø For the purpose of this study we collected :

Secondary data through induction manual, magazines, corporate journals and web
site &

Primary data through.

a) Questionnaire method.

b) Interview method.

In our study the main emphasis was on the questionnaire method. We used questionnaire
method which consisted of 4 attributes and again they were further divided into 12
parameter. Question, which were asked, were of multiple choice in nature and were of
closed ended.

Personal interview were also conducted. There was face to face conversation
between researcher and the respondents. All the answers were recorded while interview
was in progress. Through interviewing, additional information was received regarding
our study.
Ø Data Analysis :

Data collected, if not subjected to analysis is meaningless. For the purpose, data
after collection has to be presented in the form of tables, diagrams and graphs. It is only
after presentation that data can be analyzed, interpreted and inferences can be drawn.

The likert scale has been used for getting the responses through questionnaire.

We used 5 point scale, which are assigned to degree of satisfaction level of the
respondent with regard to the effectiveness of training which was imparted to them
during the last year.
1
2
3
4
5

Poor
Average
Good
V. Good
Excellent

The responses were collected and analyzed on the above mentioned 5 point scale. We
used weighted score and weighted average for the purpose of presenting our findings in
the Radar Chart and Pyramid Chart.

Weighted Score : This score was observed for every individual attribute for each
department. The score was obtained as :
Ø No. of response X Weights

These score were used to make Radar chart type (spider chart) for the presentation
of the performance of a particular department on 12 Parameters. The purpose of making
Spider Chart is to locate the position of department on each parameter.

Ø Weighted Average :

We get the Weighted Average for each attribute by :

Weighted Score / Total department (respondent) score

Through this method the weighted average for each individual parameter of a
particular department was obtained. And through these W.A. we calculated the mean of
the weighted average of a dept. Sum of the weighted averages of all the department
Ø Total No. of attributes.

This is the required weighted average, which we get for a department as a representative
of the performance with respect to others.

This weighted average was then used to make a pyramid chart to show the performance
of the departments on 5 point scale.

Ø Department-wise analysis :

We derive a rating scale in continuous series with a common class interval by using
the following methodology.

We take difference between highest and lowest rating obtained by the 2

departments (HRD-3.33 & Civil-2.15) & further divided by 4 so that to make a
continuous series of 4 classes with a common difference of 0.295 and assign it the
measurement criteria.
Rating Scale
Measurement Criteria

2.15 – 2.45
Below average performance

2.45- 2.74
Average Performance

2.74-3.04
Good Performance

3.04-3.33
High Performance

We used the above measurement criteria in our department-wise. Analysis chart also
show the performance of each internal supplier as compared to other.

Methods of evaluation

1. The opinion and judgment of head of the department .

2. Asking the head of the department to fill up evaluation forms.

3. Use of questionnaire .
4. Giving oral and written test .

5. Comparing departments performance.

6. Analysis of efficiency & effectiveness of time.

Measuring level of Quality, Delivery, Innovation and Productivity.

Limitations of the study

As no person is perfect in this world , in the same way no study can be considered as
fully reliable at one glance . there are a number of uncontrollable factors acting as
limitations in conducting the study . some of such limitations encountered by me in our
study are -

1. Non - availability of secondary data compelled me to start from the very minute
information .

2. Respondents in some department gave biased responses for fear of their position in
the company. This may have influenced the results .

3. Some people at top level were afraid and showed complete reluctance to give
responses to some questions.

CONCLUSIONS

After conducting the survey and analysis the data collected, it can be concluded that:-

1. The employees are not much aware of internal customer supplier concept.

2. Employees of different departments believe in concentrating only upon their

departmental functions.

3. Things are seen from department point of view and not from organization’s point of
view.

4. Certain problems which are faced by almost every department are:-

a) Inconsistency in quality of product/service supplied by the respective suppliers.

b) No group discussions, workshops or customer care programmes take place between

the customer - supplier deptts.
c) Requirement of a lot of follow up to the work done.

5. Quality of the product service provided needs improvement.

6. Lacking of customer training & knowledge sharing.

7. Need of improvement in feedback communication.

8. There is a need for the adoption of innovative tools and techniques.

9. Communication, coordination and feedback to internal customer to be strengthened.

10. There was no flexibility in adopting cost control techniques.

11. Lot of wastage of resources and under utilization machine/men-hours.

12. There was no promptness of service/response to the customer department.

13. Irregular availability of data, records and diagnostics approach to the customer deptt.

14. There was no consistency in services and lengthy strength.

15. Internet was limited.

16. No routine check-up of pc and printers.

Lacking in the best technology like “ON LINE TRACKING” of each batch of fabric etc.

SUGGESTIONS

General suggestions for improving internal customer satisfaction to be followed by the

organization to be really successful in exploiting the fullest potential of their employees
are as follows:

1. Cost control measures

2. Promptness

3. Pre-detection & proper maintenance of old dg sets

4. Consistency in quality of steam

5. Adherence to delivery commitments

6. Participative planning with customers

7. Communication and coordination should be more effective

8. Optimizing of machine and men-hours

9. Needs improvement in quality of product and services provided

10. Submission of summarized quality reports daily

11. To highlight problem and record the solution

12. Resistance in accepting the feedback regarding damages

13. Advanced information regarding any new quality is needed

14. To be more effective in inventory control and ordering through diagnostic approach

15. Training and knowledge sharing of financial reports

16. Provide advanced information about the failure

17. Needs better planning of procurement of packing material

18. Improve customer service in all respects

19. Resolve day to day problem quickly

20. Improvement in timely payment

Internal customer satisfaction survey

Internal customer dept._____________________________________________

Internal supplier dept._____________________________________________

Supply/Service received___________________________________________

Rate the answer on a scale 5.

1
2
3
4
5

Poor
Average Good
Very Good
Excellent

Sr. No. Parameters

1
2
3
4
5

1 Quality

a)
Quality of Product/Service

b)
Quality of feedback/communication

c)
Consistency of services
2 Delivery
1
2
3
4
5

a)
Promptness of response/service

b)
Accessibility & availability of documents

c)
Adherence of delivery commitments

3 Innovation
1
2
3
4
5

a)
Receptivity for innovation / new ideas
b)
Adoption of innovation tools & techniques

c)
Analysis of data/diagnostic approach

4 Productivity
1
2
3
4
5

a)
Adopting cost control measures

b)
Minimizing wastage of resources/time

c)
Optimization of machine/men-hours
· Kindly give your expectation from the service department which has not met

_____________________________________________________________
_____________________________________________________________

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