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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
JUNE 2011
VOL 3, NO 2
The impact of consumer behavior on FMCG’s
A study of Okara, Punjab( Pakistan)
Hafiza Hafsa Nayyab, Hamna Javed, Ahmad Ibraheem, Lubna Safdar
Abstract
In this report we put an effort to see the impact of consumer behavior on fast moving
consumer goods. The consumer behavior is studied through different dimension by
understanding demands patterns of the people regarding quality, price, brand loyalty and
demographics. These are the independents variables through which the behavior of is
gathered regarding different FMCG’s. Different FMCG’s company’s like Unilever, P&G,
Continental biscuits, Coca-cola and others products are taken to obtain the behavior of
regarding it. Our target market was Okara. The data was collected by the primary source
through questionnaire. We used stratified random sampling in the report. The population of
Okara is 27, 915 and we have selected the sample of about 100 respondents from different
classes that includes upper class, middle class and lower class (people having more then
15,000 income). We have seen that people in Okara mostly used Unilever products as they
are easily available at near stores. We also saw that they consider quality when they
purchase. There is no big retail store for the people. It was also seen that the market share is
mostly obtain by multinational companies in Pakistan.
Keywords: Consumer behavior, FMCG’s, Brand loyalty, Demographics
Introduction
Few years back the FMCG companies ignore the small cities market, no interest was given
for selling or producing products in Pakistan. That was the initial stage of FMCG
companies in Pakistan. As the time passing the marketing strategies of FMCG companies
are also changing. Small cities are the best opportunities for FMCG companies in Pakistan
as most of the people lives there and also because it is less competitive then big cities (like
Lahore, Islamabad and Karachi etc). As the time passing the income level of people is also
increasing as well as the demand of FMCG.
FMCG stands for fast moving consumer goods. It is also known as consumer packaged
goods and consumer goods. The fast moving consumer goods in Pakistan primarily deals
with the production, distribution and marketing of consumer packaged goods. These are the
products that can be used at regular intervals. The category of this sector includes foods&
beverage, personal care, plastic goods, and household products etc. The FMCG market can
be divided into four major consumer categories, namely; Food, Toiletry, Household, and
Health categories (FMCG & Retail Report 2008). And the most popular items are soaps,
shampoos, detergents, shoes polish, tooth paste, household accessories, packaged food
items and many more.
These are the products on which most of the portion of monthly budget is being spend. The
returns on this sector are large enough because these are products on which everyone has to
spend on as these are the basic necessities of life.
Every company should develop a strong distribution networks to prevent the new entrants
in the market. It would be done by developing the strong brand image and spending huge
amounts on the promotional of the brands. Most of the companies from which upper class
like to purchase are multinational companies in Pakistan because the national or local
companies in Pakistan are not providing high quality goods to the consumers. But the lower
and middle classes are using the national or local products too. This is the big reason why
most of the FMCG companies are multinational that are getting good returns. A lot of
multinational companies invested in Pakistan in FMCG sector and they are getting higher
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