WAY OF IMPROVING CUSTOMER SATISFACTION OF FMCG SECTOR

                                      (WITH RESPECT TO FMCG INDUSTRY)

A Project Report Submitted to

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY ANANTAPUR

In partial fulfilment of the requirements

for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

By

K.Mohan Mahendra

Regd. No: 21691E00E4

Under the guidance and supervision of

Karthikeyan V

Assistant Professor

DEPARTMENT OF MANAGE MENT STUDIES

MADANAPALLE INSTITUTE OF TECHNOLOGY & SCIENCE
(UGC Autonomous - Affiliated To Jawaharlal Nehru Technological
UniversityAnantapur)
MADANAPALLE-517 325
ANNAMAYYA DISTRICT, A.P.
2021-23

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 DECLARATION

I declare that this project entitled CUSTOMER SATISFACTION OF FMCG SECTOR is

a bonafide work submitted to Jawaharlal Nehru Technological University, Anantapur, under
the guidance and supervision of Karthikeyan V Ph.DAssistant Professor, MITS school of
Business , Madanapalle Institute of Technology & Science, Madanapalle, for the award of
MASTER OF BUSINESS ADMINISTRATION is a record of original work done by me and that
the project has not previously formed the basis for the award of any degree, diploma,
associate ship, fellowship or similar title.

(K.Mohan Mahendra)
(21691E00E4)

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 DEPARTMENT OF MANAGEMENT STUDIES

Certificate

Certificate that the project report entitled CUSTOMER SATISFACTION OF FMCG

SECTOR , submitted by K.Mohan Mahendra ( 21691E00E4) for the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION of Jawaharlal Nehru Technological University,
Anantapur, is a record of independent project work undertaken by him under my
supervision and guidance and the project has not been submitted either in par or whole for
the award of any other any degree or Diploma of any university.

Karthikeyan V
Project Guide Dr.Srimanth Basu Ph.D - IIT
Kharagpur, Dean- Administration
& International Relations, Head -
Department of Management Studies

INTERNAL EXAMINER EXTERNAL EXAMINER

ACKNOWLEDGEMENT

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I would like to thank all those persons who have contributed towards the successful
completion of the project work, I am glad to say that working on this project has been both
illuminating and enjoyable for me.

I have deep sense of gratitude to project guide .KarthikeyanV Assistant Professor, MITS
school of Business, for his encouragement, guidance and valuable suggestions throughout
the project.

I express my deep sense of gratitude to Dr.Srimanth Basu Ph.D - IIT Kharagpur, Dean-
Administration & International Relations, Head - Department of Management Studies for
his co-operation and suggestions.

I take this opportunity to thank our respected chairmanSri. N. Krishna Kumar garu,
Correspondent Sri. N. Vijay Bhaskar Chowdary garu and our beloved principal Dr. C.
YUVARAJ garu, MITS for their generosity and kindness to embrace us in Madanapalle
Institute of Technology & Science Madanapalle.

My heartfelt thanks to my parents and friends for going out of their way to see that I
successfully implement and complete this project. Their words of wisdom and patience
were much more than a blessing.

I would like to thank all the faculty members of M.B.A, Department, MITS and friends who
directly and indirectly helped me to complete this project.

(K.Mohan Mahendra)

(21691E00E4)

INDEX :

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S.NO Content Page NO

Title Sheet 1

Declaration 2

Certificate 3

Acknowledgement 4

Content Page 5

1 Chapter 6

Introduction 7

Introduction & Significances of the study 8-10

2 Chapter 11

Chapter II- Methodology 12

Research methodology & Sampling method 12

Data Analysis & Interpretation 13-27

3 Chapter III- Result, Findings & Conclusions 28

Finding & Suggestions 29

conclusion 30

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CHAPTER-1

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 INTRODUCTION

Introduction OF FMCG sector

Products which have a quick turnover, and relatively low cost are known as Fast Moving
Consumer Goods (FMCG). FMCG products are those that get replaced within a year.
Examples of FMCG generally include a wide range of frequently purchased consumer
products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products
and detergents, as well
as other non-durables such as glassware, bulbs, batteries, paper products, and plastic
goods. FMCG may also include pharmaceuticals,consumer electronics,packaged food
products, soft drinks, tissue paper, and chocolate bars.
India's FMCG sector is the fourth largest sector in the economy and creates
employment for more than three million people in downstream activities. Its principal
constituents are Household Care, Personal Care and Food & Beverages. The total FMCG
market is in excess of Rs. 85,000 Crores. It is currently growing at double digit growth
rate and is expected to maintain a high growth rate. FMCG Industry is characterized by a
well established distribution network, low penetration levels, low operating cost, lower
per capita consumption and intense competition between the organized and
unorganized segments.

INTRODUCTION

Customer satisfaction survey has been conducted on Fast Moving Consumer Goods (FMCG)
industry; considering two significant product categories in that industry; namely, oral care
and personal wash (soaps) segments. Such a survey is very important as customer
satisfaction can impact every aspect of the business from earnings to stock profits. The
survey was conducted to encourage clients and customers to give vital feedback on issues
that can affect customer retention, including:

● Overall satisfaction

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 ● Product-specific satisfaction

● Brand perception

● Pricing

● Timeliness of delivery

● Customer service satisfaction

● Returns and exchange process satisfaction

● Interest in new products and services

It would help the companies involved in FMCG industry to optimize the relationship with
their clients/ customers.

The objectives of this survey are:

1. Measure customer satisfaction levels

2. Improve customer retention
3. Gauge interest in new products and service offerings
4. Pinpoint areas for process improvement
5. Get actionable feedback at an affordable price.

NEED AND PURPOSE OF THE STUDY:

The purpose of the study is to measure customer perceptions of how well the FMCG
industry as a whole delivers on the critical success factors and dimensions of the business.
These usually include factors like service promptness, staff responsiveness, and
understanding of the customer's problem. Customer loyalty and satisfaction levels can be
determined by analyzing the data gathered from our survey questions.

● discover new product and service development ideas;

● determine what makes customers loyal;

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 ● Understand customer issues and relationships of industry with the consumers.

This study on customer satisfaction in FMCG industry can assist decision-makers of FMCG
companies in developing strategies to achieve the all-important goal of gaining and
retaining customers. Results can play a key role in identifying areas of the business that
require corrective action and improvement. It also identifies areas that can be leveraged to
achieve business growth and expansion.

1. Importance for Small Business: Small and new businesses can gain repeat customers.

2. Importance for Medium to Large Businesses: Larger businesses can monitor customer
satisfaction levels. Larger businesses have levels of managers and executives who usually
don't have direct, one-on-one contact with customers. Survey provides data and feedback
to monitor customer satisfaction levels and assess employee performance in fulfilling
management objectives and goals. Survey targets specific customers by demographics, by
geography, marketplace needs and more.

3. Importance to Customers: Results can provide insights to increase business--in good and
bad times. Most customers actually desire a long-term relationship with a brand, product or
service provider. Customer satisfaction survey provides a platform for them to do so. Their
responses, whether good or bad, provide a wealth of information and feedback to utilize in
developing, retooling and improving the customer experience with brands, products and
services.

Risks of Not Conducting Surveys:

Some business decision-makers hold the opinion that surveys only attract disgruntled
customers. That attitude could prove risky. It opts to rely on gut and intuition without
actual, quantitative and qualitative information directly from customers. The result could
mean unrealized growth, missed opportunities and loss of customers to competitors.

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 SCOPE OF THE STUDY:

It would help in understanding the extent of satisfaction of consumers with the FMCG
industry and its multitude of segments. It can build a foundation on which customer
relationships can be built upon. The study would be covering mostly the area of southern
India and customer satisfaction and loyalty of south Indians over FMCG products. The study
would concern the opinions of customers over a minimum period of 1 month.

LIMITATIONS OF THE STUDY

Since the FMCG industry is a big industry harboring numerous segments and thousands of
products, it is not possible to conduct survey on the whole FMCG industry within a limited
period of time. 2-3 product categories may be taken. Limited time and lack of awareness of
other efficient data gathering techniques and tools for analysis have limited the accuracy of
our findings in this survey.

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CHAPTER-2

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 RESEARCH METHODOLOGY

Research have been carried out by collecting data directly, i.e; from the primary sources
of data because data collected in this manner is unique and original. While collecting the
primary data, we have used the questionnaire method which is a popular means of
collecting data. We have used the questionnaire in its own right as well as a basis for
interviewing and telephone survey. This method was adopted as it was relatively
cheaper, covers a wider geographical area and respondent can consider his/her
responses before answering.

The questionnaire contains 17 questions; Out of which first 6 conveys personal

information & rest are regarding consumer’s opinion on FMCG industry. It has a
combination of both open-end and close-end questions. Two are open-end questions &
9 are closed- end questions. Except the final 2(unstructured), rest of the questions are
structured questions. Attitude questions have also been employed. Semantic differential
scale and likert scales have been used in the questionnaire to gauge the customer
response on a scale of 1-10 and 1-5.

Probability method of sampling has been used. Numbers of the collected samples
are 50.We have considered the oral care category & personal wash (soap) category
while studying the FMCG industry. For this purpose we have collected 25 samples from
oral care & 25 from personal wash (soaps) category. Samples have been collected from
diverse areas around South India (Andhra Pradesh & Kerala) & from different age
groups & from housewife, daily workers, retailers, professional workers, retired people,
students & so on.

Data analysis

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The data is collected from a small sample of population. We collected the data from 40
people from different areas. Based on these data we could able to find the following
things. The data below shows the findings of personal wash soaps

Customer satisfactory survey on personal wash (soaps) products

1. Age group of the sample

Age group No.

18-24 10
25-34 17
35-44 2
45-54 6
55-64 4
65 and above 1

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 2. Level of Education

Level of Education Number

Higher Secondary Or Below 7

Senior Secondary 8

Graduation 11

Post Graduation 8

Professional Course 6

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 3. Employment status

Employment Status Number

Govt Service 10

Private Service 13

Business 4

Self Employed 3

Retired 2

Student 8

4. Household Income Per Month

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 Household Income Per Month No.

Below 5000 5

5000-10,000 18

10,000-50,000 14

50,000-1,00,000 2

1,00,000 and above 1

5. Usage of product (soap)

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 Brand Percentage

Lux 37.5

Lifeboy 15

Dove 15

Pears 17.5

Medimix 5

Santoor 2.5

Other 7.5

6. Source by Which they Came to Know about the Product

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How Came to Know About the Product No.

Friends/Relative 4

Television 26

News Paper 5

Magazine 2

Internet/ Websites 3

Other 0

7. Satisfactory Level of the Product

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satisfactory Very Satisfie Dissatisfie Very
level Satisfied d Neutral d Dissatisfied

Lux 14 1 0 0 0

Lifeboy 5 1 0 0 0

Dove 6 0 0 0 0

Pears 7 0 0 0 0

Medimix 1 1 0 0 0

Santoor 1 0 0 0 0

Other 2 0 1 0 0

8. Order of Importance when Buying Soap

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Order of Importance When Buying Soap No.

Quality 21

Price 7

Quantity 5

Brand Name 3

Familiarity 4

Customer Satisfaction Survey on Oral (tooth paste) Care.

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 1. Age of Respondents

Age of respondents No.

18-24 15

25-34 7

35-44 8

45-54 9

55-64 1

2. Level of Education

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Level of education of respondents No.

Higher secondary or below 2

Senior secondary 5

Graduation 16

Post graduation 9

Professional course 8

3. Employment Status

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Employment status No.

Govt service 7

Private service 12

Business 4

Self empioyed 3

Retired 1

Student 13

4. Household Income Per Month

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Household income per month No.

Below 5000 5

5000-10000 21

10000-50000 10

50000-100000 4

100000 and above 0

5. Source by Which they Came to Know about the Product

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How did they came to know No

Friends/relative 6

Television 29

Newspaper 3

Magazine 1

Internet/Website 1

Other 0

6.Satisfaction Level

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satisfaction Very Satisfie Dissatisfie Very
level Satisfied d Neutral d Dissatisfied
Colgate 18 0 0 0 0
Pepsodent 5 1 0 0 0
Close-up 11 0 1 0 0
Dabur 1 0 1 0 0
Babool 0 1 0 0 0
Other 0 0 1 0 0

7.Product Users (tooth paste)

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Users No.

Colgate 18

Pepsodent 6

Close-up 12

Dabur 2

Babool 1

Other 1

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 CHAPTER-3

Findings:

From the above Survey we found that most of the customers are quality oriented. Their first
importance in any product is quality, after that price and third importance is quantity, fourth
one is brand name, and last one is familiarity. It means customers are more aware of about
quality not to the brand name and they are also price conscious.

The main source of awareness is television. Most of the people are getting familiar to the
product through television.

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We find that more than 37% peoples are using LUX, 15%- Lifebuoy, and Dov-15%, Madimix-
5%, Santoor-2.5, and other brand-7.5%. It means LUX is very famous brand in middle
(10000-50000 per month) and lower middle class (5000-10000 per month) families.

We found that overall satisfaction level of Pears and Dove is very high, 100% people are
very satisfied. And for Lux 93% people are very satisfied, and 7% satisfied. And for Lifebuoy
83% people are very satisfied, 17% are just satisfied.

We found that most of the users of Colgate are from middle and lower middle class society.
Satisfaction level of Colgate is also very high.

Recommendations’

We find that people are more conscious about product quality and price so marketer
should maintain the quality and fix the reasonable price. They are not much aware
about brand name so marketers should don’t waste the money on brand promotion and
advertising, as we found that more than 70% people know about product b
Television so they invest in telemarketing.

So many consumers have commented on packaging, variety and taste of Colgate so they
should work on it. Some peoples are not satisfied with color and flavor of Pepsodent
paste,

CONCLUSION

It has been an enlightening first hand experience to conduct a consumer satisfaction

survey using questionnaires and the conclusion we have drawn is based on direct
responses from the respondents.

After collecting this sample survey we found that most of the people are more aware
about quality of product this is a very good symbol for healthy competition in market.

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After that they look on price of the product, it means if product quality is good they
ready to pay more money but we found that they are not much worry about brand
name, that’s bad for marketers who didn’t made brand loyalty in customers.

We found that most of the people know about product by Television. It means in rural
area where electricity is not available people are not much aware about these products.

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