Finacial Inclution and Rural Credit in Indian Economy

8/17/2019 Finacial Inclution and Rural Credit in Indian Economy

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A Study on

“FINANCIAL INCLUSION AND RURAL CREDIT

IN INDIAN ECONOMY 2000-2010.”

Submitted in the partial fullment of the requirement

for qualifying

Master of Business AdministrationOf

Invertis University

Submitted by

Narendra Singh

Roll No:13!1!3!3"

#ro$e%t guide : A&&i&tant #rof Ra$ee' (handari

Spe%iali)ation: *inan%e


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DECLARATION

+o,

+he -O,

/n'erti& uni'er&ity

Re&pe%ted Sir,

/ the under&igned hereby de%lare that the pro$e%t report

entitled #er%eption and (uying (eha'iour of

0odern on&umer to2ard& #er&onal are

produ%t& original 2or de'eloped and &ubmitted by meunder the guidan%e of #rof. S.4.RO5

+he empiri%al nding& in thi& pro$e%t report are not %opied fromany report and are true and be&t of my no2ledge.

A+6:

#7A6: (areilly

RO77 NO.:13!1!3!!1

Signature of &tudent


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CERTIICATE

+hi& i& to %ertify that the pro$e%t entitled 89 &ubmitted by 8Afreen

An&ari9 in partial fullment for the a2ard of 0a&ter of (u&ine&&

Admini&tration /n'erti& ;ni'er&ity i& her original 2or and doe&

not form any part of the pro$e%t& undertaen pre'iou&ly.

Al&o it i& %ertied that the pro$e%t repre&ent& the original 2or

on the part of the %andidate.

#la%e: (areilly

ate:

Signature of the ire%tor Signature of


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AC!NO"LED#EMENT

=ith immen&e plea&e 2e are pre&enting “#er%eption

and (uying (eha'iour of 0odern on&umer

to2ard& #er&onal are produ%t&.” #ro$e%t report a&

part of the %urri%ulum of 80a&ter of (u&ine&& Admini&tration9.

=e 2i&h to than all the people 2ho ga'e u& unending &upport.

/ e>pre&& my profound than& to #rof. S.4 RO5. pro$e%t

guide and all tho&e 2ho ha'e indire%tly guided and helped u& in

preparation of thi& pro$e%t.

=e al&o lie to e>tend our gratitude to all &ta? and our

%olleague& of ollege of 0anagement, 2ho pro'ided moral&upport, a %ondu%ti'e 2or en'ironment and the mu%h@needed

in&piration to %on%lude the pro$e%t in time and a &pe%ial than&

to my parent& 2ho are integral part of the pro$e%t.

+haning you.

Afreen An&ari


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ABSTRACT

The first and most objective of my study is comparative study of

perception and consumers buying behaviour regarding personal care products. The study of consumer behaviour is the most important

factor for marketing of any goods and services. The consumer

behaviour suggest how individual, groups and organization select,

buy, use and dispose of goods, services, ideas or experience to satisfy

their needs and wants.

It also clues for improving or introducing products or services, setting

price, devising channels etc.

Since liberalization !!" #$I is allowed in India. This has attracted

foreign companies to penetrate the Indian market. The marketers

always look for emergent trends that suggest new marketing

opportunities and here in India a lot of opportunities are available.

The personal care sector is one of the best and important sectors at the

present time. There is a lot of future opportunity in this sector. Theincreasing trend of different cosmetic products, beauty care products,

skin care products, hair care products etc fuels the market growing

opportunity for cosmetic products.

#rom the last couple of years, the demand of personal care products is

not only increase in only women but also it increases in men .e.g.

%imani #air and %andsome mardon wali fairness cream. &ike thatthere are many opportunities has been arising and change is made in

consumers perception.


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Index

a' (cknowledgement

b' )refacec' *xecutive summary

d' contents

. Introduction

+. ack -round of the Study

. /bjective of the study

0. &iterature 1eview2. 1esearch 3ethodology

4. #inding, (nalysis 5 Interpretations

6. conclusion

7. suggestion

8. ibliography


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INTRODUCTION TO THE TOPIC

-enerally, personal care products are these products which a

consumer uses for his personal purpose. It includes differenttypes of cosmetic and skin care products like talc, cold cream,

fairness cream, toothpaste, toothbrush, perfume, deodorant,

hair oil, shampoo, soap, and all type of baby care and beauty

care products. These are the core #39- products. (ny person

need for these products every day.

)ersonal care products are a part of #39- industry. In somewords we can say that personal care products are the

backbone of #39- industry. (s per the time passes

away, the demand of personal care products are also

increasing day per day and future of these products are also

very bright and profitable.

There was a time when consumers not spend too muchamount on the personal care products. ut in those days, they

are not only eager for spending more money on the cosmetic

products, but at the same time they are looking for a good and prestigious brand for the particular product. 3odern media

and advertisement plays an important role in the increasing of

demand of personal care goods. )eople of metro cities are too

much brand conscious but if we look at the people of semiurban and rural areas, they are also looking for a good brand

for the particular product.

%imani #air and %andsome 3ardon :ali #airness 9ream,

Thanda Thanda 9ool 9ool ;avratna talc, International &ux

etc. are the some of the front drive of advertisement in the

way of the success of personal care products.


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BACKGROUND OF THE STUDY

The Indian cosmetic Industry has witnessed rapid growth over the last couple of decades. In that time the range of cosmetic

and beauty products in India has widened tremendously.

eauty products manufacturers in India mostly cater to the

great demand for cosmetics and toiletries that fall into the lowor medium


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bombarded with advertisements and information on new

cosmetic products which often translates into the desire to

purchase them. ( boom in the Indian fashion industry has

also been linked to the increased awareness of Indian peopleabout their appearances and conse=uently contributed to an

increase in the demand for cosmetic products. %owever, even

with the massive surge in the popularity of cosmetic products,

statistics have shown that the average Indian consumer spends

much less on cosmetic products than consumers from every

other part of the world. This means that the Indian cosmetic

industry has an even greater potential for growth than it is presently experiencing.

In the entire range of products that fall within the territory of

the Indian cosmetic and toiletries market, the most popular

items are colour cosmetics, of which nail varnish, lipsticks

and lip glosses account for the most sales. In this area, popular local brand names include &akme and 1evlon. Skin


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-reece and make


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Need of !e S"d#

The study is done for getting a deep knowledge and ideaabout Indian cosmetic>>personal care sector. The need or

objective of the study is to know the how much consumers

give preferences to the brand of cosmetic goods whether the

customers are satisfied with the cosmetic products of the

company and how far the company is able to satisfy the

customer in terms of =uality and cost factors since in todays

modern era customers are the focus for any company, anyorganization that without satisfying them no company can

survive in this global competitive age. ;on satisfaction of the

potential customers can lead them to switch over to anotherone. ;ow the policy every company or organization is to

provide satisfaction as there exists a lot of competition for

them. %ence it becomes necessary to conduct a

comprehensive research in terms of customer satisfaction so

that it is able to know how far it stands before others. This

also helps to judge whether if there is any lag in the policy

and could take immediate action to rectify it.

The need of this project also arose because an extensive

survey can help the company whether the work done by thecompany in the area of new products is able to satisfy the

customers or not. The major focus of the research conductedtherefore is to discover the factors that people are aware about

the upcoming new products and the attribute of the product

which attracted them for a trial. The study was restricted to

only around 2!


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/?*9TI@*

1*S*(19% /?*9TI@*

To know about consumers perception and buying behavior

about cosmetic goods when they purchased it.

SA /?*9TI@*

• To determine the actual demand of consumers.

• To know about the performance of popular brands of

different companies in market.


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MA$OR COMPANIES OF PERSONAL CARE SECTOR

MA$OR COSMETIC COMPANIES %&ORLD &IDE'

9ompanyB

. &oreal

+. )rocter 5 -amble

. Anilever

0. (lticor

2. Shiseido4. (von

6. eiers dorf

7. ?ohnson 5 ?ohnson8. (lberto


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MA$OR INDIAN COSMETIC COMPANIES(

In India, there is a complete range of cosmetic companies.itincludes regional companies, national and 3;9s. %industan

Anilever leads the companies which is followed by -odrej

consumer care, )rocter 5 -amble, *mami, $abur and 9alvin

9are.

( broad list of these companies has been given belowB

. %A&

+. -/$1*? 9/;SA3*1 9(1*.

. *3(3I0. IT9.

2. $(A1.

4. )1/9T*1 5 -(3&*.

6. 9(&@I; 9(1*.

7. %(;C*& I;$I( &T$.

8. 3(1I9/.

!. 1*9CITT *;9CIS*1 DI;$I(' &T$.

. 9/&-(T* )(&3/&I@* )@T. &T$.

+. 9%/&EI& )@T.&T$.

. ?.C.%*&*; 9/ATI*S &T$.0. ? & 3/1IS/; I;$I( &T$.

2. 3/$I 1(@&/; &T$.


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1) HUL %H*nd"+,n Un*e.e/ Ld)'

CEO(-N**n P/,n,e.

%industan Anilever &td. %as takes first position in the

cosmetic products selling in India. *very one out of two peoples uses the products of %A&. There is a wide range of

variety of products of %A& in India.

)roduct 1ange D9osmetic'B<

&ux, &ifeboy, %amam,&iril, reeze, $ove, )ears, 1exona

#air5&ovely, )onds,@asaline, (vience , Sunsilk,9linic ,(xe, (yush ,&akme

Surfexel,1in,Sunlight, :heel,

9loseup,,)epsodent

2) GODRE$ CONSUMER PRODUCTS LTD)

CEO(-Ad* God/e )

-odrej 9onsumer 9are is one of the biggest companies in the

field of #39- business. *very one out of three Indians uses

the product of -odrej. It also has a wide verity of cosmetic products.


9inthol, #air glow, *vita, ;o. , @igil, Shikakai, 9olour soft,

;upurDmehandi',

;o., )owder hair die, 1enew Dhair colour', 9inthol

Dshampoo,deo,talc, Saving gel',

*zee


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) EMAMI

CEO( -N)3ENKAT)


oro)lus, #air 5%andsome, #ast 1elief, %air &ife, 3alai

Cesar 9old 9ream, ;avratna /ilD/il, &ite, *xtra Thanda,

9ool Talc' aby massage oil,

4) ITC

CEO( -Y)C)De.e+5e/


*ssenja $e :ills, Inizio, #emme, #i maD2varities',

@ivel,Superia

67DABUR (

CEO(-S"n* D"88,)


(mla hair oil., (mla light oil, vatika, anmol sarson

(mla,-ulabary,9rFme, lotion,


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9) P:GCEO(-A)$)LAFELY

)roduct 1ange D9osmetic'B

)antene,%ead 5 Shoulders, -illette, Safeguard, Gest, /ld Spi

/lay, (ussieDshampoo',

;) M,/*


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>) CA3IN KARE CEO( -C)R,n8,n,!,n

)roduct 1ange D9osmetic'B

9hick, ;yle, Indica, meera badam shampoo, Carthika,#airever, SpinzDtalk5deo.',nyle

coldcream

OTHER COMPANIES

There are some other companies engaged in the business of

cosmetic products. Including them, some are the multinationalcompanies like


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COMPETITION AMONG MA$OR COMPANIES(

There is a huge competition among the companies working

with the personal care segment of #39- industry. %A& is

leading the market in many segments from last

couple of decade. ut right now it is facing a good

competition from the other existing companies like )5-,

3arico, -odrej 9onsumer 9are &td., $abur etc. ( full data ofthese companies and there market share is given in the

following above table.


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The countries largest maker of home and personal care

products, %industan Anilever &td D%A&', has lost marketshare by value over the five =uarters ended 3arch+!!8,

the erosion cutting across key categories such as soaps,

shampoos, toothpastes and skin creams, even as the broader

market expanded significantly

%A& lost considerable market share in soaps, detergents and

shampoos that contribute three


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-odrej ;o. is a product of -odrej 9onsumer )roducts &td

D-9)&' and Santoor is made by :ipro 9onsumer 9are and

&ighting, a unit of :ipro &td.

%A&Hs market share in the laundry segment grew to around

6.7" in the =uarter ended ?une from 2.2" in the same

period last year, according the market research

#irm .

%owever, this time, the increase was not at the expense of

price war with its multinational rival )rocter 5 -amble 9o.

)5- also gained !.2 percentage points, up to a 6.4" share. ;irma &td, the (hmadabad


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LITERATURE REI3E&

Indian cosmetic industry is one of the profitable and stable

sector. There is a bright and golden opportunity in this sector.3any of the scholars, research agencies has done their

research on this sector and given their own different views

and suggestions.

The global outlook series on )ersonal 9are )roducts provides

a collection of statistical anecdotes, market briefs, and concise

summaries of research findings. The report offers exclusive preludes, and primers on the global 9osmetics and Toiletries

markets such as Skin 9are )roducts, %air 9are, /ral %ygiene,

Shaving )roducts, ath 5 Shower )roducts, #acial 9are, &ip9are, #eminine %ygiene )roducts, $eodorants, #ragrances 5

)erfumes, and aby Toiletries. The report also includes a

compilation of recent mergers, ac=uisitions and strategic

corporate developments. 3ajor regional markets discussed

include Anited States, ?apan, *urope, #rance, -ermany, Italy,

AC, Spain, (sia, 9hina, India, South Corea, razil, and

3exico, among others. The report also includes an indexed,

easy


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for each region and product segment for the period of +!!

through +!2. ( ten9reams,

5 /thers', and, Sun 9are )roducts.The report provides


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separate comprehensive analytics for the AS, 9anada, ?apan,

*urope, (sia


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RESEARCH METHODOLOGY

METHOD OF DATA COLLECTION

a' Secondary

3y research aims to gather primary data for understanding

9onsumer behavior through =uestionnaire.

DATA SOURCE

Secondary data are those which has been collected by some

one else and which already have been passed through

statistical process. Secondary data has been taken frominternet, newspaper, magazines and companies web sites.

There are basically two sources to collect secondary data

a' InternallyB )rovided by the company>organization

b' *xternallyB @arious publication of central, state and local

-overnment.

ooks, magazines, newspapers Internet. (fter only keeping inmind one can think about what type of data has to be collected

during research as our research is concerned we have to gather secondary data for 9ustomer behaviour .


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DATA ANALYSIS B

There is a number of data analysis has been done on the basisof =uestionnaire and different basis. Theses basis of

=uestionnaire has been made on different preference and

buying habit of consumers. The data analysis is given as

followsB


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T(&* B


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Interpretation

The above data shows the expenses percentage of consumerson cosmetic products. (ccording to this table, +!" of

consumers below 2!! 1s. on cosmetic items, "peoples

spend 1s.2!!


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TABLE 2-

TRUST&ORTHINESS OF BRANDS

#actors ;o. of consumers

)roduct origin !

(wards received 2!

&aboratory reports 2!

*ditorial recommendation +!

A

(

33

!

Chart Tit$e

InterpretationB <

The above data shows that the " of consumers trust on

brands on the basis of awards received by the brands 5

laboratory reports. /nly +!" of consumers want to know

product origin.


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TABLE (-SOURCES OF BRAND A&ARENESS)

S/A19*S ;/. /f 9/;SA3*1S

Internet +!

Seminar !

;ewspaper 4!

Samples +2

&eaflets !

:ords of mouth +2

! C " D 1! 1

InterpretationB

The above table shows the different sources from where

consumers are able to know about cosmetic products. 2!" of


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the consumers are getting aware with the products from

advertising in T.@ or some other medium. +7" of the

consumers are get aware about the product by their

friends.+" of consumers are able to know about the productsthrough some other sources like free sampling, mass media,

brand promotion etc.

TABLE 4(-

(reas interest the consumer most

(rea ;o. of consumers$iscount 4!

&atest product 2!

)roduct reviews !eauty !

A

(

InterpretationB


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The above data shows the customer interest.0!" of customer

look for discount and " of consumers take interest towards

the availability of latest product in the market and +!" are

beauty conscious.

TABLE 6-

)1*#*1*9* /# $I##*1*;T 1(;$S D9/A;T1E

:IS*'

brands ;o. of consumers

;ational 7+

International 2

&ocal 6

22"0"

"

A

(


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InterpretationB

The above data table shows the preference of consumers

towards different brands of cosmetic products on the basis of

country. 22" of consumers prefer the brands of differentnational companies. The main reason is less price and

relatively good =uality. 0" consumers prefer the brands

international companies or imported products. These

consumers contains models, relatively rich people,

professionals etc. last " consumers prefers local goods.


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TABLE 9( -

S%/))I;- %(IT /# 9/;SA3*1S #/1 )&(9*

)laces ;o. of consumers

3alls +

Supermarkets 6+

Traditional shops 6

e


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The above data shows the different habits of consumers

during they are on a way to purchase the products. There was

a time when consumers gone to only one or two storesavailable in an area. They purchase only those things which

the retailer gives them. (t the time, the consumers have very

limited choice due to unavailability of more retail stores in an

area. ut now a day there is a bunch of availability of super

markets, malls, and different ways to shopping. (t the present

time, 07" of people goes to a super market, +2" goes to

same old traditional stores, these persons are eitherfrom backward area or some semi urban areas. +" peoples

goes to malls for shopping, these are the peoples of metro

cities or good developed city like &ucknow, (hemdabad, and)une etc. 1emaining 4" people deals with e


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TABLE ;(-

(##*9TI;- #(9T/1S 1*S)/;S&* #/1 T%*

AEI;- $*9ISI/;.

*ffecting factors ;o of consumers

9ompany 6

)ackaging +7rand name 26

price 07

1(;$ ;(3* 7"

)1I9* +"

)(9C(-I;- 8"

9/3)(;E "

A

(


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InterpretationB

The above table shows the different factors which effects the buying decision of the consumers. (t the present time more

than 2"D7"' of consumers prefers the brand name before

purchasing of a cosmetic product. +" of consumers prefers

price as a important factor in the purchasing of a cosmetic

product. 8" preference goes to the packaging and remaining

" preference goes to reputation of companies.


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CONCLUSION AND SUGGESTION

CONCLUSION(

(s the research has shown the comparison between customer

buying behaviour regarding Indian and International product

in recent time. Since the consumer buying behaviour is the

important factor to forecast the sales of any product in a

particular area. So company should keep close eye on the

market situation. yet, customer were price sensitive, but the

changing market trend and customer view and preferenceshown that customer are now =uality sensitive .They want

=uality product, good services, easy availability of product

and better performance by the product.

These days no of customer buying from malls has been

increased. (lso the fre=uency to visit the malls has been

increased substantially. )eople are more brands conscious and

they are satisfied with the range of products available there.

:e can conclude from our study that still more inclination is

towards indigenous product the preference ratio of indigenous

to imported products is 6B This is because of the relatively

higher price of imported product.


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S"88e+*on+

. 9ustomer like best =uality product on any price, socompany should add latest technology to their products.

+. after sales services is the area where Indian and

International 9ompany can highly satisfy the existing

customer, because they can make more customers through

Their word of mouth. So Indian and International 9ompany

should provide latest and reliable service to their customers. . 9ustomer behaviour always looks for some extra benefit

with purchasing. They demand for affordable price for

product and gifts with purchasing.

0. International 9ompany should make strategy to cater everyincome group customers in city. Apper income group are

affordable to purchase but lower income group is not. SoInternational 9ompany should make policies to send

their product and every home.

2. The Indian company should give more emphasis on

advertising to create market awareness and to make a brand

image in the minds of investors.

4. 9ompanies should do more publicity through road shows,

newspaper and advertisement. (s this will create awareness

about the fund and schemes that are at present managed by the

International 9ompany. 6. They should keep a close eye on competitor strategy.Refe/en


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;ews paperB

Finacial Inclution and Rural Credit in Indian Economy

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