Future Scope Of Probiotics Product In India

Published Date: 02 Nov 2017

Ajit Kumar

Roll No: 12001

Sec- D

ISB&M, Pune (Nande)

Under the guidance of:

Prof. Rahul Hans

ISB&M, Pune (Nande)

Dissertation submitted in partial fulfilment for the degree of 2- year Post Graduate Diploma in Management

International School of Business & Media, Pune

2013

Contents

CHAPTER 1: Introduction

1.1 Enquiry Overview The importance and relevance of new product launching in the competitive business environment is a known fact with a number of organisations developing and implementing different kinds of marketing tools and applications.

1.2: Research Aims & Objectives The research aims at understanding and investigating the impact and importance of customer acquisitions in the FMCG sector by focusing on the practices. The concept of customer acquisition is dependent on wide arrays of internal and external factors and often influenced by understanding the behaviour, attitude and perceptions of consumers in an analytical manner. The research also aims at achieving the following objectives:

1. To analyse and evaluate the impact and importance of new product development in the competitive business environment

2. To evaluate the current trend of customer towards the probiotic products.

3. To analyse and assess the marketing initiatives taken by different organisations to acquire the customer for probiotic products.

1.3: Research Questions

In order to understand and evaluate the impact and influence of probiotic products; a number of questions needs to be answered. Some of the questions designed can only be answer through an analysis about the current trend and the future scope of probiotic products. The questions to be addressed are as follows:

1. Does the companies are taking the right steps to create the awareness about the probiotic products?

2. Is India a good market for the probiotic products?

3. What are the positive and negative aspects for the companies to enter into probiotic products business?

1.4: Rationale of the Study Marketers is facing the problem of dealing with the consumers’ behavior and attitude towards the acceptance of probiotic products. All the organisation is in the business of probiotic products have been using effective marketing strategies to create awareness about the probiotic.

The mode of communication became more advanced and improved that helped in targeting large number of customers along with keeping a track of them to understand their buying and spending patterns. Under the influence of information and technology, the organisation reached to different customers along with understanding their taste, preferences and buying habits. An ongoing and periodic desired for products and services can be considered as a strong factor to the probiotic products Considering the present FMCG industry, it is very much clear that there is an ongoing and periodic desired for products and services amongst the customers is an important need to acquire and retain customers in the short as well as in the long run. However, considering the active number of customers buying products of probiotic, it can be assumed that the organisations are focusing on increasing the customer turnover along with more consumption.

Thus, it can be assumed that findings from this research would help in understanding the current and future market for the probiotic products.

1.5: Scope & Limitations The research has a wide scope of covering the different aspects regarding the acceptance of probiotic products in India. It also covers its usefulness in the FMCG industry by relating to the growth and development patterns of probiotic products.

The research scope can be considered a bit limited in terms of concentrating on a specific products operating in a specific industry rather than targeting an industry as a whole. The research has been inhibited by resource and time constraints that affected the data collection processes and presentation of findings. In addition to these limitations, collection of primary data has also been a major constraint as the researcher wanted to collect data from the management of Yakult and the current probiotic customers.

1.6: Summary The chapter comprehensively introduced the purpose of the research in an informative and analytical manner. The aim and objectives of the research has been identified and presented well along with highlighting the importance and relevance of the research in the current business environment. The rationale of the study has been presented in an illustrative manner highlighting the reasons behind the study based on logics. The scope and limitations of the study has been presented with a logical view and understanding. It can be said that the chapter explains the purpose, aim, objectives, rationale and scope of the research in an informative manner. The next chapter would analyse the literature along with identifying the significance and importance of probiotic products.

Chapter 2: Statement of the Problem

The Indian FMCG sector is the fourth largest sector in the economy with an estimated size of Rs.1, 300 billion. The sector has shown an average annual growth of about 11% per annum over the last decade. Unlike the developed markets, which are prominently dominated by few large players, India’s FMCG market is highly fragmented and a considerable part of the market comprises of unorganized players selling unbranded and unpackaged products.

Penetration level and per capita consumption in many product categories is very low compared to world average standards representing the unexploited market potential. Mushrooming Indian population, particularly the middle class and the rural segments, presents the huge untapped opportunity to FMCG players.

Still in India there are several products category which is yet not available. Probiotic products were one of them which were launched in India very lately. Here through this report i want to analyze the current trend of probiotic market and what can the future scope for the probiotic in India.

Chapter 3: Objective

The objective to prepare this report is to map the market and future scope for the probiotics product in India. Some of the key drivers that are favourable to the probiotics product are:

Greater emphasis on preventive healthcare

Changing demographics(rural to urban & semi-urban), and the

Emergence of wellness related retail chains.

Market Drivers and Potential Inhibitors

Increasing youth population

Increasing consumer interest in health and wellness

Increase in stress related & lifestyle disease

Increase in disposable income

Lack of consumer awareness about probiotics

Lack of appropriate distribution channels & cold chain facilities

Lack of labelling

Taste preference of the consumer

3.1 General objective: The general objective to prepare that report is for:-

To gaining knowledge about the FMCG sector in India.

Getting the knowledge about the probiotic product.

To get the knowledge about the consumption pattern of probiotic products.

To identify the probiotics product potential & future scope in India.

To understand the consumer attitude towards adopting new products.

To identify the nature of activities carried out on the probiotic products by the Indian & MNC Companies.

Identify the challenges faced by the companies in the monitoring and getting customer for the Probiotic products.

To make recommendations in order to mitigate challenges faced in monitoring getting Customer of probiotic products.

3.2 Research objective: The research objective of the report is:-

To gain depth knowledge about the Current market trend and future scope of probiotic products.

To know about the Market Drivers and Potential Inhibitors for the probiotic products.

Products in which probiotic can be used.

Different benefits of using the probiotic products.

Chapter 4: Review Literature

Introduction

To getting the depth knowledge and to prepare the report i had visited different websites, gone through several articles and news that came about the probiotic products & market in India. A survey has been also conducted to understand the current and future scenario of probiotic products in Indian market.

Probiotics are friendly bacteria or yeasts that are being used for centuries as natural ingredients. Probiotics are microorganisms that are non-pathogenic or harmless. Probiotics are effective in maintaining and restoring the balance of microbes in our gastrointestinal. Probiotics are vastly used worldwide.

India represents a huge market opportunity for probiotics. India is a nascent market which saw the launch of probiotics only around 2006-07. This is in sharp contrast to other Asian countries like Japan and South Korea, and western countries like the US and UK which have had a probiotics market since the 1980s.

The intake of probiotic drinks as a food supplement is yet to gain significance in the mind of the Indian consumer who is accustomed to home-grown dahi (yoghurt).

CMR’s estimate for the global probiotics drinks market during 2011 stands at US$ 18 billion. As per initial estimates by the CMR Healthcare & Life sciences Practice, India represents a market of only US$ 11 million in 2011, with competition being limited to a couple of home grown giants and two foreign entrants. The market is estimated to be growing at 16% p.a.

While the India probiotic drinks market is driven by increasing affluence, greater emphasis on preventive healthcare, changing demographics, and the emergence of wellness related retail chains, the key challenges include lack of standardization, product stability at room temperatures and the need for validating product claims.

This chapter presents the background to the research problem. It then situates and articulates the research problem. It then highlights the research objectives and questions. The chapter also defines the scope of the study, benefits and some of the key terms used. It then presents summary of the other chapters that make up the dissertation report.

4.1 Conceptual Clarification

Health and wellness is undoubtedly the category of the future for the fast moving consumer goods segment. And the probiotic food category is slowly moving over the learning curve to carve an industry.

Probiotics are friendly bacteria or yeasts that are being used for centuries as natural ingredients. Probiotics are microorganisms that are non-pathogenic or harmless. Probiotics, also known as ‘Friendly bacteria’ in lay terms, are live, non-pathogenic  microorganisms that benefit the consumer’s digestive system by restoring the naturally existing gastrointestinal microflora, preventing the colonization of the intestine by pathogens, and, consequently, improving the immune system. Clinical studies in the past have demonstrated benefits of probiotics in multiple diseases, such as intestinal infections and inflammations, colon cancer, gynaecological infections and allergies. Probiotics are available in the marketplace in the form of health foods (like yoghurt, ice-cream and milk

beverages) and dietary supplements (like capsules, tablets, and powders). The most commonly used probiotics in these commercially available products belong to Lactobacillus and Bifidobacteriumgenera, which are found naturally in dairy products. Probiotics are effective in maintaining and restoring the balance of microbes in our gastrointestinal. Probiotics are vastly used worldwide.

Chapter 5: Research Methodologies

5.1 Introduction

This chapter presents the research methodology of the study. It describes and justifies the methods and processes that were employed to collect data that was used in answering the research questions. The chapters starts by defining what research methodology is, it then reviews the different types of research with the view of classifying the research study and hence choice of appropriate research method. The different research methods are then reviewed and the appropriate one is chosen and the justification for the choice is made. The chosen descriptive survey research method is then operationalized by describing how the population was sampled, questionnaire designed and administered.

The research was mostly depend on the Secondary data, because the awareness rate about the probiotic products is very low, currently it is present in north India and companies are planning to expand the business into pan India.

Primary data is collected through survey, telephonic interaction & mail.

5.2 Research Methods

There are many kids of analysis that the social researcher can use for research. In practice, though, the options here used are "qualitative research".

Quantitative Research: This method tends to be associated with numbers as the unit of analysis. It is mostly applied in large-scale studies where the population is considerably larger. It has got a specific focus and it contains a pre-determined research design. The whole point of

quantitative research is to produce numerical data that are objective in the sense that they exist independently of the researcher and are not the result of undue influence on the part of the researcher himself or herself.

Drawback of Quantitative Research: The principle drawback of this kind of research is the circumstance of the learning or experimentation is overlooked. Quantitative research does not take into consideration effects in a usual situation or converse the connotation things have for diverse populace as qualitative research does.

Qualitative Research: This method is associated with words or images as the unit of analysis. It depends on transforming information from observations, reports and recordings into data in the form of the written word, not numbers. It is related with description and small scale studies where the population is considerably smaller. It has a holistic approach and involves an emergent research design.

Drawback of Qualitative Research: This is mostly dependent on the researcher which confers a subjective outlook of the process and the members. It is quite time consuming. Because the sample size is smaller so, the analysis done on the basis of the data could be less accurate.

5.2.1 Research Method for the present study: Since in this case, the main objective is to study the consumption pattern of consumers which involves a large-scale survey analysis of population, hence quantitative method is justified for the present research. The data will be collected by survey questionnaire methods where the questions will be close-ended and enumerative with numerical representation of graphs and charts, hence quantitative method has been chosen.

5.3 Purpose of the research study:

Research can be grouped into exploratory, descriptive and explanatory.

Exploratory Research: These studies are usually undertaken when relatively little is known about a phenomenon or an event. The goal is to determine whether a relationship exists among several variables under scrutiny. This type of study often operates as a pilot study to determine the feasibility of conducting a larger, more complex study and is mostly apt in quantitative studies. The main drawback of this kind of research is that it narrows down the opportunities in an exploration.

Descriptive Research: This kind of research attempts to describe a group of people, a phenomenon or an event. It is one of the first steps in understanding social problems and issues. It describes who is experiencing the problem, how widespread the problem is, and how long the problem has existed. This kind of research is mostly apt in qualitative studies. The main weakness of this kind of research is that it fails to explain the grounds behind a specific condition.

Explanatory Research: This focuses on why variables are related to one another. One main purpose of explanatory research is to test theory. In this kind of research, the investigator measures the variables and then provides evidence that either supports or refutes the contention that there is a cause and effect relationship that exists between these variables. This is also used in quantitative research to explain the relationships between the variables. The main weakness of this type of research it lacks relevancy to a particular situation.

5.4 Professional Ethics, Reliability & Validity:

The main phenomenon of research studies is that it should be an objective and free from bias. Researchers should not indulge in supporting a predetermined conclusion by using biased samples, biased questions, manipulating statistical analyses, or ignoring relevant information. These all aspects have been duly considered in the whole process while collection and interpretation of data.

Certain ethics should also be followed while collecting the data from respondents. It has been tried not to force the reluctant respondents for their feedback. Only those who willfully gave their feedback have been concerned. It has been tried not to interfere with the normal process in the shop and data has

been collected only after due consent from the shopkeepers to carry out the research. At the start of survey care has been taken to completely get acquainted with the consumers because people often dislike being interrupted while shopping. The privacy and anonymity of the respondents have been maintained throughout.

5.5 Conclusion: This section thus has explained clearly the methodology, approach, purpose and modes of data collection. From the above discussion, it can be concluded that the present research is quantitative in nature, with a deductive reasoning and exploratory in nature. Primary data has only been collected in this case by survey questionnaire analysis of respondents. From all aspects, reliability and validity of data has been maintained throughout the complete research process.

Chapter 6: Data Collection

There are mainly two types of data collected for the purpose of the research work, based in the sources of data:

Primary Data: Original data collected by individual researchers or organizations to meet specific objectives is known as primary data. In this case, primary data is collected for establishing the objectives of the research paper.

Secondary Data: Secondary data is those data which is already been available on internet or at any place. Secondary information is any data originally generated from different sources for some purpose other than the present research objectives. Secondary data includes both internal and external data. Since in this case primary data has been collected, hence this method is not dealt in depth.

6.1 Designing Primary Data for Quantitative Research Process:

The basic designs which are used in a quantitative research study are the following:

Observational Research

Experimentation

Surveys

Observational Research: Observational research is an important method of market research because marketers recognize the best way to gain in-depth understanding of the relationship between people and products is by watching the people in the process of buying and or using the products. Doing so enables observational researchers that comprehend what the product symbolizes to a consumer and provides greater insight into the bond between people and products that is the essence of brand loyalty. The two basic types of observational methods used by researchers are mechanical observation and physical observation.

Experimentation: It is possible to test the relative sales appeal of many types of variables, such as package designs, prices, promotional offers, or copy themes through experiments designed to identify cause and effect. In such experiments (called casual research), only some variables are manipulated (the independent variables), while all other elements are kept constant. A controlled experiment of this type ensures that any difference in the outcome (the dependent variable) is due to different treatments of the variable under study and not to extraneous factors.

Surveys: If researchers wish to ask consumers about their purchase preferences, consumption patterns and other related information they can do it, by mail, by telephone, or online. Each of these survey methods has certain advantages and certain disadvantages that the researcher must compare when selecting the method of contact given in table.

Mail

Telephone

Personal Interview

Online

Cost

Low

Moderate

High

Low

Speed

Slow

Immediate

Slow

Fast

Response Rate

Low

Moderate

High

Self-selected

Geographic Flexibility

Excellent

Good

Difficult

Excellent

Interviewer Bias

N/A

Moderate

Problematic

N/A

Interviewer Supervision

N/A

Easy

Difficult

N/A

Quality of Response

Limited

Limited

Excellent

Excellent

COMPARISON OF SURVEY METHODS SOURCE: SCHIFFMAN & KANUK

Personal Interview Surveys: This most often take place in the retail shopping areas. Where randomly the people has been chosen for the research. Some question also being asked during they were filling the questionnaire.

Telephone Surveys: These kinds of surveys are also used to collect consumer data; however evenings and weekends are often the only times to reach telephone respondents, who tend to be less responsive-even hostile to calls that interrupt routine work.

Mail Surveys: These kinds of surveys are carried out by sending questionnaires directly to individuals at their homes. One of the major problems of mail questionnaire is a low response rate, but we have developed a number of techniques to increase returns, such as using a provocative questionnaire and sending pre-notification letters as well as follow-up letters.

Online Surveys: Not Used

6.2 Quantitative Research Data Collection Instruments:

Data collection instruments are developed as a part of a study’s to design the systematize way for collection of data and to ensure that all respondents are asked the same questions in the same order. The two most important instruments are:

Questionnaires: It is mainly applied as a tool for conducting quantitative research. Questionnaire should include both substantive questions and demographic questions which should be unambiguous, interesting, objective and easy to complete. Questions can be disguised or undisguised and is generally close-ended where the respondent merely checks the appropriate answer from a list of options provided. These close ended questions are simple to analyze, depict diagrammatically through graphs and tabulated.

Attitude Scales: Researchers often present respondents with a list of questions or other attributes for which they are asked to indicate their relative feelings or evaluations. The various types of scales used are Likert Scale, Semantic Differential Scale, Behavior-intention scales and Rank order scales.

6.3 Collection of Primary Data for the present study:

Primary data has been collected through mall intercepts survey (Local kirana stores, Laxminagar Area, Delhi). The questionnaire consisting of close-ended undisguised questions was structured carefully to obtain the feedback of consumers regarding their purchase choice, demography and purpose of buying. The questions are structured and predetermined and the same questions in the same order are presented to the respondents. The questions are simple, limited in number and direct to avoid any kind of biasness. Data interpretation has been done through graphs and charts thus concluding the outcome.

6.4 Sampling & Sample Population:

Since it is almost impossible to obtain information from every member of the population or universe being studied, researchers use samples. A sample is a subset of the population that is used to estimate the characteristics of the entire population. There are two types of sampling:

Probability Sampling: (Simple random sampling and cluster (area) sampling).

Non-probability Sampling: (Convenience Sampling, Judgment Sampling).For the present study, random sampling has been used and the sampling details have been given below:

1. Sampling Unit: Laxminagar local retailers in Delhi.

2. Sampling Population: 50 respondents chosen randomly from the different kirana store.

3. Sampling Style: Systematic Random Sampling (In this a member of the population is selected at random and then every "nth" person is selected.

Parameters Measured:

Demographics (Age, Sex)

Income Profile.

Frequency of Purchase.

Influence of friends and families while buying.

Reason for purchase.

Chapter 7: Data Analysis

This chapter presents the findings of the study. It describes the response profile of the research study by highlighting the response rate of the survey, and the nature and number of the respondents that completed and returned the questionnaire. It then highlights and discusses the findings of the surveys presented under each of the four investigative questions. Prior to the presentation of findings of each investigative question the criterion for data analysis and interpretation is set.

SAMPLE: - We take a sample of 50 people in which the number of male & female was respectively. We take their opinion through different question & then we evaluate all the data together.

TOOLS: - Questionnaires are an inexpensive & easiest way to gather data from respondents. They are the only easiest way to reach a number of people for statistically analysis of the results. A well-designed questionnaire is used to gather information on both the overall performance, as well as information on specific components of the system. If the questionnaire includes demographic questions on the participants, they can be used to correlate performance and satisfaction with the test system among different groups of users. The tools that we used to conduct that survey was the questionnaire & get respond from them to get their view about the probiotic products. Through different question we get the information about the other related aspect with probiotic.

The findings are based on the survey conducted in Laxminagar area in Delhi where 50 respondents chosen randomly from different shops. The main questionnaire was divided into four different sections, the sections are chosen

such that to answer the research question and reflect the objectives of the research. The questionnaire is about demographic profile, income, awareness etc. to understand the respondent’s general background and the visitor’s profile.

Data Analysis

Q1. Name (Optional)

34 out of 50 respondents answered to this question. The response for this question was totally independent.

Q2. Your age falls between?

a. Less than 18 years

b. 18 or more up to 36 years

c. 36 or more up to 54 years

d. More than 54 years

The analysis to this answer show maximum respondents falling under the range of 18 till 36 age bracket with almost 44% representation. The graph below describes this scenario.

As we can see that the respondent’s age falls between the age ranges of 18 to 36. This indicates towards the young consumers increasing as a customer for big bazaar. It is also analogous from the fact that the middle income group population is increasing in India with buying power. This population is mainly young in India and it falls almost in the same range.

Q3. Gender

Male

Female

The number of male respondents is much more than female respondents. Almost 88 percent are male in the sample.

Q4. Income Profile, Please choose from the below range.

Less than 15,000 per month

From 15,000 to 30,000 per month

From 30,000 to 45,000 per month

From 45,000 to 60,000 per month

More than 60,000 per month

The above graph indicates the maximum number of respondents falls from the income range of <30,000 Rs per month. This indicates towards lower and middle-income group representation. There can be many interpretations from the representation. Again, this is cumulative results of the question asked above where we find maximum respondents from young age group.

Q5.Do you know about probiotic products?

Yes

No

From the above data it can understood that the awareness about the probiotic products is still low. Only 44 percent people are familiar with the probiotic products in a metro city. So, it is a most essential part of marketing to create awareness among the users. The companies should promote it in a better way that can increase the awareness rate.

Q6.From where did you know about the probiotic products?

Newspaper

Magazines

Television

Internet

Shopkeepers

As we can wee in the above graph that the major source from the people get information about the probiotic product is television and shopkeepers. Because only 22 people are aware about the probiotic products. So, the further question will answer by them only.

Q7. Are you aware with the benefits of probiotic products?

Yes

No

Somewhat

This question was asked to understand the knowledge of the products and its benefits. 73 percent people who know about the probiotic products are also aware with its benefits. It clearly shows that the people who know the benefits of the usage of probiotics preferred to use it.

Q8.In which category you put the probiotic products?

Healthcare Drink

Energy Drink

Both

None

This question was asked to understand about the members that are directly associated with the probiotic products. 14 percent people consume it because they understand it is a healthcare product and 18 percent people consume it because it is an energetic drink. But 64 percent people categorized it into healthcare as well as energetic drink.

Q9.How many times you use probiotic product daily?

1

2

>2

This question was put to check the pattern of consumption pattern of the people. 54 percent people use the probiotic products twice everyday. It is showing that the consumption pattern is relatively good and there have a good sign to have a huge and potential market in near future.

Q10.Are you satisfied with probiotic products?

Yes

No

Somewhat

Absolutely Not

The satisfaction rate with the probiotic products is very high. 64 percent people are satisfied with the product. 27 percent people are fairly satisfied with the probiotic products and they may continue to consume the products.

Q11.Do you recommend probiotic products to a friend or relative?

Yes

No

Maybe

Maybe not

It is pretty positive sign that 68 percent people will recommend to use the probiotic products to their friends and relatives. 18 percent people may also recommend to their friend and relatives. It is also a great opportunity for the companies to enter into probiotic business.

Q12. Is probiotic product worth of its price?

Yes

No

Can’t say.

The consumers are satisfied with their price. So it is also a positive sign for the companies to enter into the probiotic business. It is also showing a great potential of probiotic products in Indian market.

Q13.Do it is easily available?

Yes

No

We see above that 82 percent people think that it is easily available in the local market. So it can understand that the distribution network of the companies which are in the probiotic business. So companies should increase the awareness about the probiotic products because distribution is not an issue.

Q14.Do you think that benefits after use affects your purchase decision?

Yes

No

We can see the clear effect if the product is useful and have some benefits.95 percent people think that the purchase decision get affected if the product have attributes and useful. People don’t hesitate to buy. The respondents agree to effects in their responses. It is also showing that people became health conscious and ready to spend on the product which benefits the health or help them to be healthy. It is also showing a positive sign for the companies.

Q15. If, yes then how much?

Very much

High

Low

Normal

This question is quietly important to map the future potentiality of probiotic products in India. 45 percent people think that they will continue to purchase the products, if it benefits for the health. 32 percent people are also agreed that they will continue to purchase it if it benefits to them. The company can work on these attributes to attract more customers. Most customers are attracted for benefit sensitivity. So, companies can make strategy to communicate more about the health benefits after using the probiotic products.

Q16.Do you think that it cares your health?

Yes

No

Don’t know

The above graph clearly reflecting that 68 percent people are using it because it is beneficial for the health and because of that they are using it. It is also significant that probiotics is really a good drink that help people to keep them healthy and also free them from other health issues. This is showing a great potentiality of probiotic products in Indian market.

Q17. Is it good for all family members?

Yes

No

Don’t Know

The views of people can be clearly identified by the above response chart.68 percent people believe that it is good for all family and can be consumed by all age group. It is also a positive sign for the companies to enter or expand into pan India.

5.4 Conclusion:

The study clearly identifies different areas and able to achieve some significant insight about the probiotic markets. After the data analysis it can be understood that the Indian market are favourable for the probiotic products. The effects are discussed in subsequent chapters in detail to seek further insight into the subject area.

Chapter 8: Results

The above analysis was based on the response received from the consumers at different local retail outlet. The Survey was based on a questionnaire. The first part about demographics reveals some interesting facts about the nature of visitors who consume probiotic products. Consumers consider probiotic products as healthcare as well as energetic drink. The consumers are largely from the middle to higher income group. This fact is reflected from our response analysis. Main attraction of Indian market is its middle-income group and its purchasing strength. All companies are trying to cash on this aspect of Indian scenario. The age group representation is usually young, it is that age group having higher disposable income, and who can spend their earnings more lavishly. Most of the respondents are consuming probiotic products because it is cost effective as well as healthier, on which the current age group are ready to invest. The result also reflects purchasing habits and its consumption pattern. The questions are asked to view respondents purchasing preferences and habits in various scenarios. The questions also analyze other factors such as behavioral outlook, perception, buying necessity, etc. It is established that such attributes also effect the purchase decisions and are capable of affecting buying decisions.

The major issue that is find that the awareness about the probiotic products is low, which is also a big issue and it also preventing the company to penetrate the probiotic products into the market. Currently the probiotic product is mostly available in some part of north India, which is also under penetrated market. In a metro city like Delhi the aware rate is not as per the requirement. So it’s much important to create proper awareness if the product is new for the market or people are not aware with that product.

Chapter 9: Proposed Solution

The focus of discussion is to understanding the consumption pattern of the consumer where the product is available. In detail, analysis of consumer buying behaviour is established by analysis previous work and literatures of writers already worked in similar field. Literature review establishes various models of factors related to buying in FMCG segments.

After reviewing different literature and when i was doing the research, i found that the major issue is less awareness and the knowledge about benefits about the probiotic products. So if the awareness will increase there is strong probability that the probiotic market can grow significantly in next few years. After going through different articles it is also found that probiotic markets has been growing very rapidly and further if companies will take actions to increase the awareness it can grow much rapidly than the current growth rate.

The big players are already entered into probiotic products like Nestle, Mother Dairy, Yakult etc. It will help to attract the Indian consumers. Though these companies have a strong presence & brand recognition in India that is able to tap the Indian markets.

This study is although focused on probiotic products but it provides general overview of new FMCG products in Indian scenario. Although the competition between these organizations is increasing but still the main challenge is to lesser awareness about the probiotic products.

There are certain limitations of study such as limitation of approach, time and resource limitation etc that limits the validity in results. This study only represents a small sample from a large population. It might not be true reflection of real scenario, yet it gives a close approximation. Still this study is very useful as guidance for other researchers. Some respondents might not focus on proving true response to questions. This can be taken as practical study for approaching similar topics.

Chapter 10: Conclusion

For India probiotic is still a new concept, because the awareness is still very low and below the expectations.

There is a need for developing customised probiotic strains for specific products that can be used to promote the probiotic market growth in the country. The current market size is very modest (Presence in some cities of north India Only), there is a rapid growth and all key trends indicate that probiotics in India will experience a boom in the near future.

Marketing initiatives of probiotic drinks companies should engaging with the consumer and educating the Indian consumer. The benefits of probiotic products should be explained.

But it is also important, that the advantages of consuming probiotic-fortified foods are being well communicated to end-users, specifically in nascent markets like India. India specifically has lacking in the market as products like probiotic supplements are treated like pharmaceutical drugs by consumers. The early adopter segment of the population has driven the consumption of probiotics in yoghurt, beverages, ice creams, and other food products. To fulfill the rise in demand, the manufacturers would need to come together and develop strategic relationships to synergise their strengths and thus overcome any individual weaknesses. It is very essential to make a great market of probiotic products and it can do only when the companies will come together to develop market as well as to penetrate the market.

Chapter 11: References & Bibliography

Marketing management by Philip Kotler (edition 2010)

http://www.nishithdesai.com/New_Hotline/Pharma/PHARMA%20HOTLINE_Dec2609.htm

 http://cmrindia.com/indias-appetite-for-probiotics/

 http://www.thehindubusinessline.com/industry-and-economy/marketing/article3708067.ece?homepage=true&ref=wl_home

 http://www.frost.com/sublib/display-press-release.do?Src=RSS&id=266973403

 http://www.businesswire.com/news/home/20121017005959/en/Research-Markets-Assessment-Indian-Probiotics-Market

 http://www.thehindubusinessline.com/industry-and-economy/article3806915.ece?homepage=true&ref=wl_home