survey report - Copy.docx

7/29/2019 survey report - Copy.docx

1/26

Institute of engineering and

technology

Submitted To: Submitted By:


2/26

Survey report on

ROLE OF PLACE IN THE MARKETING MIXFOR THE F.M.C.G. PRODUCTS

Acknowledgement


3/26

We take immense pleasure in thanking our Head of the MBA Department Mr D.N. Kakkar

sir who encouraged and challenged us through our academic program and for having permitted

us to carry out this survey work. He never accepted less than our best efforts.

Our special thanks to Sailesh sir and all our faculty members who helped us in preparing and

arranging the survey questions and for their invaluable suggestions in preparation and

completion of the report.

And especially to God, who made all things possible.

Finally, yet importantly, we would like to express our heartfelt thanks to our beloved parents for

their blessings.

INDEX


4/26

1 INTRODUCTION

2 objective

3 research methodology

4 data analysis

5 Findings

6 conclusion

7 recommendations & suggestions

8 LIMITATIONS

9 BIBLIOGRAPHY


5/26

Introduction

To understand the marketing mix we first have to understand what market and marketing really

is. The popular meaning of the term Market refers to a place where goods are bought and sold

against a price consideration between the buyers and the sellers. But it may be technically

defined as not just a place but a commodity or commodities and buyers and sellers who are in

direct competition with one another. It includes both the products and services provided.

In marketing, the term Market refers to a group of consumers or organizations that are

interested in the product or service, has the resources to purchase them, and is permitted by law

and other regulations to acquire the product.

The market definition begins with the total population and progressively narrows down to

Target Market and Penetrated Market.


6/26

The Concept Of Marketing:

Marketing is generally understood as the sale and purchase of goods and services but it is just a

narrow thinking to understand it. The term Marketing is very wide; it simply does not just

refer to only sale and purchase of the goods and services. It means the entire process of satisfying

the needs of the consumers. It starts with the discovery of needs and wants of the consumers and

it continues till these needs and wants are satisfied.

Marketing may be defined as the process of matching the resources of the business with

identified consumer needs. In other words, marketing is concerned with the focusing of the

organizations resources to ensure that the consumer is satisfied and that while fulfilling the

consumers needs and wants the organization earns profit.

Some of the key questions a firm or an organization faces are:

What do customers want? Can we develop it while they still want it? How can we keep our customers satisfied?

In response to these discerning customers the firms adopt the Marketing Concept whichinvolves:

Focusing on customer needs before developing the product Aligning all functions of the company to focus on those needs Realizing a profit by successfully satisfying the customers needs over the long term

The marketing concept relies upon marketing research to define market segments, their size andtheir needs. To satisfy those needs, the marketing teams make decision about the controllable

parameters of the Marketing Mix.


7/26

The Marketing Mix:

Marketing Mix is a combination of several elements of marketing. These elements include what

is commonly referred to as the The four Ps which are:

Product Price Place /Marketing Channel Promotion

When these elements are combined it is possible to see the target customers. This is considered

the result of carefully mixing the other elements. By combining different amount of the basic

elements, a different mixture can be created. This is used by the businesses to formulate a

marketing strategy for the products or services that they offer.

The four Ps are important during all stages of production from early development to the final

production, by adhering to a good marketing mix, the product will have a more focused target

customer. This can help the product or service to perform better in sales than if no marketing mix


8/26

strategy is used. A marketing mix is also used to cater the product to the intended customer. If

the product is intended to be high profile, then the mix would be adjusted to focus on the

promotion while compromising on the other elements in the mix. If the main focus is the selling

price then elements would be adjusted to accommodate the lower price point of the item.

Place Mix or Marketing Channels:

Producer of a product rarely sell their goods or services directly to the consumers or the

customers. Marketing Channels or in terms of marketing mix Place, are the means by which

interdependent organisations move products or services from the producer to the person that

purchases or consumes the product. This is the basic role of distribution.

According Philip Kotler A marketing channel is a set of independent organizations that help a

product or service available for use or consumption by the consumer or business user.

Place has a number of names such as channel, distribution or intermediary. It is the mechanism

through which goods and/or services are moved from the manufacturer or the service provider to

the user or the consumer.

Some of the examples of the distribution decision or the place decision include:

Distribution channels Market coverage (inclusive, selective, or exclusive distribution) Specific channel members Inventory management Warehousing Distribution centers Order processing Transportation Reverse logistics, etc.

The survey focuses on the role of the place in the marketing mix of for the F.M.C.G products.

What is meant by the F.M.C.G. products? Is the first question that pops up in the mind.


9/26

F.M.C.G:

F.M.C.G. stands for Fast Moving Consumer Goods. The fmcg industry includes food and

non-food everyday consumer products. They are usually purchased as an outcome of small-scale

consumer decision so they are heavily supported (advertising, promotion) by the manufacturers.

Typical purchasing of these goods occurs at grocery stores, supermarkets, hypermarkets etc. the

manufacturers are always exploring new outlets and sales locations while the traditional retailers

have introduced private label brands to capture additional profit. Every one of us uses fast

moving consumer products every day.

Fig: Some F.M.C.G. products

This business is based on building a powerful brands and achieving a high level of distribution.

Global power brands are the choice of multinational companies. Local brands can complement

these. Achieving superior distribution through a powerful supply chain and making sure the

products are available wherever someone might want or need it. The fmcg supply chain is

interrelated collection of processes and associated resources. It includes suppliers,

manufacturers, logistics service providers, warehouses, distributors, wholesalers and all other


10/26

entities that lead up to delivery to the final customer. Followed in the market through sales force

activity it can help gain a high level of distribution.

Market research, consumer research, segmentation and product positioning is the compulsory

homework of any company in this industry. Advertising and promotions, POS activities drive

brand awareness, trial, purchase are core activities. While TV advertising is most common new

solutions are also used including internet advertisements. High budgets, creativity and detailed

planning are needed.

Fig: Some F.M.C.G. companies and brands


11/26

Objective

The objective of our survey and research is based on one of the mixes of the

marketing mix:

To study the role of the Place in the marketing mix of the F.M.C.G.products.


12/26

Literature REVIEW

The marketing mix paradigm, in its famous version of the 4 Ps, went all the way through the

evolution of marketing theory being object of discussion both in academic literature and

managerial practice. Though its a fact that the 4 Ps marketing mix is a milestone of marketing

theory, it is also true that the evolution of business contexts has created the need to review the

controllable factors which form the marketing mix.

In McCarthys version, the marketing mix is composed of: product, price, placeand promotion. Each of these Ps comprise a number of the twelve managerial

policies described by Borden (1964), thus including other sub-mixes within each P.

As noted by Kalyanam & McIntyre (2002), the marketing mix is a collection

of thousands of micro-elements clustered together in order to simplify managerial

activity. The validity or the exclusion of the traditional mix in the digital context is a

matter of if and how it is possible and convenient to extend the number of elements it includes

or to dismiss it and create a new one.

Place. Can be defined today as: everything that is done and necessary to smooth the process of

exchange (Yudelson 1999). The application of this definition to the digital context urges to add

the element of purchasing process as a key feature of place within the mix. The process must be

smooth and easy, while building relations with customers at the same time. The physical place

becomes virtual and includes intangible aspects of transaction. Bhatt & Emdad (2001) underline

that the main contribution of Internet to business is not the mere possibility of selling products

online, rather its capability of building relations with customers. The interactive capabilities of

Internet allow the implementation of more efficient and effective systems of digital Customer

Relationship Management (e-CRM). Internet enables to obtain information which can be used to

manage customers, thanks to the data gathered through the registration of users to the companys

Web page and the online purchase data for each customer. This helps to maintain

the service level and


13/26

improve the management of the customer portfolio (Fjermestad & Romano, 2003; OLearly et

al., 2004). In the formulation of his twelve elements Borden (1964) pointed out that

it is necessary to create: 1) a list of the important elements or ingredients that make

up marketing programs; 2) a list of the forces that bear on the marketing operation of a firm and

to which the marketing manager must adjust in his search for a mix or program that can be

successful.

McCarthys marketing mix has been widely adopted through time by managers and academics,

becoming a key element of marketing theory and practice. This wide diffusion may be

justified on the basis of its simplicity of use and understanding which makes it a

useful tool both for marketing decisions and teaching. (Grnroos, 1994; Yudelson,

1999; Jobber, 2001). The concept of marketing mix is considered in the Managerial School of

Marketing (MSM)

The 4 Ps marketing mix was created in the early days of the marketing concept

when physical products, physical distribution and mass communication were dominant.

Today, with the new business environment created by the different and empowered

capabilities of digital contexts, the marketing mix paradigm increasingly becomes object of

criticisms. Although the mix has the capacity to include a wide set of variables in order to adapt

to a large range of mutations in the business environment, many authors believe it is obsolete and

inadequate for the 21st Century.


14/26

Researchmethodology

SAMPLE DESIGN

SAMPLE UNIT: - All people are included both the genders i.e.males and females

irrespective of their education level

SAMPLE SIZE: - 100

SAMPLE REGION: - LUCKNOW

SAMPLING PROCEDURE: - Random Sampling

DATA COLLECTION METHOD

PRIMARY DATA :

Primary data was collected through a self administrated questionnaire. This q u e s t i o n n a i r e

a i m s t o g a t h e r i n f o r m a t i o n r e l a t e d t o v a r i o u s B r a n d e d Electronic Home

Appliances.

SECONDARY DATA:

Secondary data was collected through magazines, research papers, internet etc.

RESEARCH INSTRUMENT QUESTIONARRE DESIGN:

As the questionnaire is self administrated one, the survey is kept simple and user friendly. Words

used in questionnaire are readily understandable to all re s pond en t . Al so t e chn i ca lj a rgons a r e avo ide d to ensu r e th a t t he re i s n o confusion for respondents.


15/26

Data Analysis and Interpretation:

According to the questions that were part of the questionnaire we got the responses and the

detailed results which were found are given in the following detailed pie charts.

The first detail which was asked to be filled was the Marital status of the person whowas filling the form. We got the following results :

About 72% respondent were unmarried and 28% respondent were married.

Then the Gender of the person was to be stated. Following results came :

1) MARITAL

STATUS

0% 1. MARRIED28%

2. UNMARRIED

72%

Marital status


16/26

About 65% respondent were females and 35% respondent were males.

Then the person was asked to state his/her age group. Following results came :

2) GENDER

0% 1.MALE

35%

2.FEMALE

65%

Gender

3) WHICHAGE GROUP

DO YOU

BELONG?

0%1. 15-20 years

9%

2. 20-25 years

45%

3. 25-30 years

28%

4. Above 30

years

18%

Which age group do you belong?


17/26

According to the results that came the majority of the people who were surveyed were between

the age of 20-25 years which topped with 45%. Rest were as follows 15-20 years 9%, 25-30

years 28%, and above 30 years were 18%.

Then they were asked give details of their income i.e., in what income group theycame? following was the income group:

1. Below 10,0002. 10,000 to 20,0003. 20,000 to 30,0004. Above 30,000

The following results came:

1. 25% had income Below 10,0002. 36% had income between 10,000 to 20,0003. 16% had income between 20,000 to 30,0004. 23% had income above 30,000

4) WHAT IS

YOUR

MONTHLY

INCOME?

0%

1. Below

10,000

25%

2. 10,000 To

20,000

36%

3. 20,000 To

30,000

16%

4. Above 30,000

23%

What is your monthly income?


18/26

The next question was to state the area where they belonged? with the options being:1. Rural2. Urban3. Town

Following are the stats received from the response of the person filling the surveys:

1. 10% respondents belong to Rural area

2. 69% respondents belong to Urban area

3. 21% respondents belong Town area

Then we asked them how much distance were they willing to cover or travel forpurchasing the products? following were the results that came:

5) WHICH

AREA DO

YOU

BELONG ?

0%

1. Rural

10%

2. Urban

69%

3. Town

21%

Which area do you belong?


19/26

The results showed that about 38% of the people would easily cover around 1-3 km for

purchasing the product that they desire whereas 23% would travel about 1 km for the same, next

there were around 26% people who will travel 3-5 km for purchasing a product and only about

13% were willing to travel more than 5 km to buy a product.

As the markets have broken the physical worlds barriers and have entered the virtualworld i.e., the World Wide Web so our next two questions were to see whether the

Lucknowites knew about this new market or not.

The first question was that Whether they knew about the online marketing and a majority

of people knew about the online marketing. The stats are displayed in the following chart.

6) HOW MUCH

DISTANCE ARE

YOU WILLING

TO COVER FOR

PURCHASING

PRODUCTS?0%

1. Less than 1 km

23%

2. 1-3 km

38%

3. 3-5 km

26%

4. More than 5 km

13%

How much distance are you willing to cover for

purchasing products?


20/26

The next question that followed was again related to the online marketing, the respondents were

asked if they have purchased or purchase products online following were the options and

the percentage of the people who frequently bought products online, who rarely buy any product

online and those who have never bought any product online.

1. Frequently 6%2. Rarely 55%3. Never39%

The following shows the results:

7) DO YOU

KNOW ABOUT

ONLINE

MARKETING?

0%

1. Yes

79%

2. No

21%

Do you know about online

marketing?


21/26

The respondents were now asked from where do they usually purchase theirproducts? following were the stats based on the answer given by them:

The results clearly indicated that maximum number of respondents prefer the General store and

Shopping malls to purchase their products with those who made most of their purchases from

the Retail stores and the least number of people bought products Online.

8) DO YOU

PURCHASE ANY

PRODUCT

ONLINE?

0%1. Frequently

6%

2. Rarely

55%

3. Never

39%

Do you purchase any product online?

9) FROM

WHERE DO YOU

USUALLY

PURCHASEYOUR

PRODUCT?

0%1. General Store

44%2. Retailers

19%

3. Shopping

Mall

31%

4. Online

6%

From where do you usually purchase

your product?


22/26

The respondents were then asked to choose between a local product or a brandedproduct the respondents chose Branded products overLocal Products.

Then the respondents were asked that Whether they will prefer another company orbrand which is easily available near their residence or they will stick to their old

brand or company?

Following results show that more than half of the respondent were not able to decide whether

they will chose another brand over their old brand or not.

10) WHAT

WOULD YOU

PREFER A

LOCAL

PRODUCT

OR A

BRANDED

PRODUCT?

1. Local

12%

2. Branded

88%

What would you prefer a localproduct or a branded product?


23/26

Then in the end the respondents were asked to Choose among the factors which theyfelt was important to them while purchasing a product

The majority of respondents chose the quality of the product to be the major factor and the least

of the respondents chose place as the factor which effected their purchase decision.

11) IF A

PRODUCT OF

ANOTHER

COMPANY OR

BRAND IS

EASILYAVAILABLE

NEAR YOUR

1. Yes

25%

2. No

24%

3. Maybe

51%

If a product of another company or

brand is easily available near your

residence will you change your oldcompany or brand?

12) WHICH

FACTOR DO YOU

GIVE MOST

IMPORTANCE

WHILE

PURCHASING A

PRODUCT?

0%

1. Place

6% 2. Price

20%

3. Quality

59%

4. Brand

15%

Which factor do you give more importancewhile purchasing a product?


24/26

conclusion


25/26

Limitations

The report has been prepared after surveying 100 people, rather a very small population in

comparison to the actual population of Lucknow. Hence the result of report cannot be stated as

standard for finding the role of place in marketing mix for fmcg products. This was the main

limitation of report.


26/26

Bibliography

http://www.netmba.com/marketing/concept/ http://www.marketingplan.net/marketing-mix/ http://www.dokwayne.com/2011/marketing-mix/ http://marketingteacher.com/lesson-store/lesson-place.html# http://en.wikipedia.org/ http://www.fmcg.ws/ http://business.rediff.com/report/2010/jan/25/fmcg-companies-struggle-to-tackle-

fakes.htm

http://withfriendship.com/images/h/39530/Fast-moving-consumer-goods-image.jpg

survey report - Copy.docx

Documents

Transcript of survey report - Copy.docx