A Study on Customer Segmentation in the FMCG Sector:�A Case Analysis of Tata Consumer Products Ltd.

Saket Kumar Mallik

Enrollment No.: A9920123003844(el)

Guided by

Roshini Ganesh

Mentor

Date: 25-05-2025

Introduction & Company Profile

FMCG Landscape in India

• Over 1.4 billion consumers with diverse income, region, and lifestyle profiles

• Segmentation is vital to personalize offerings across mass and premium categories

Why Tata Consumer Products Ltd. (TCPL)?

• Reaches 200+ million Indian households through daily-use essentials

• Operates across Tea, Salt, Pulses, Cereals, and Wellness categories

Flagship Brands

• Tata Salt (Market Leader)

• Tata Tea Gold, Tata Sampann, Tata Soulfull - trusted for quality, health-focus, and

value-for-money positioning

Strategic Fit with Segmentation Models�• Applies STP for channel-specific product targeting�• Uses VALS to appeal to Thinkers, Achievers, and Health-focused buyers�• RFM logic aligns with staple categories and repeat purchase behaviors

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Objectives of the Study

Study Objectives

🔹 Segmentation Approach

• Understand how TCPL segments customers across income, geography, behavior, and psychographics
• Apply STP, VALS, and RFM models to evaluate segmentation strategy
• Validate segmentation using real-world datasets (NielsenIQ, EY, HCES, TCPL reports)

🔹 Strategic Outcome Focus

• Analyze impact of segmentation on design, pricing, and communication

Recommend sharper targeting and customer engagement

• Mapping TCPL’s segmentation logic, models, and outcome focus

Research Methodology & Data Analysis

Methodology Approach

• Adopted a secondary research strategy using verified public datasets
• Used structured segmentation frameworks: STP, VALS, and RFM
• Explored income, geographic, and psychographic dimensions

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Data Sources�• NielsenIQ FMCG Tracker (2023)�• EY Future Consumer Index (2023)�• HCES (2023)�• TCPL Annual Reports (2022–24)

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Analytical Focus

Evaluated customer purchase behavior, lifestyle patterns, and regional product preferences

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Framework progression used

�Key Findings – Income & Regional Segmentation�

• Higher FMCG spend observed in MPCE groups above ₹15,000/month (HCES, 2023–24)

• TCPL’s staples (Tata Salt, Tata Sampann) dominate among mid-income households

• Rural regions show stronger brand loyalty and value sensitivity

• Urban zones prefer diversified offerings like Tata Soulfull and Tata Tea Gold

• South and West India lead in premium category adoption

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�Key Findings – Psychographic & Behavioral Segmentation�

• Health-conscious consumers prefer Tata Soulfull and low-sodium salt variants
• VALS segmentation highlights Achievers and Thinkers as key target psychographics
• Working millennials value ready-to-use, fortified foods like Tata Sampann blends
• Behavioral trends show loyalty toward brands offering functional health benefits
• Higher RFM scores observed in customers purchasing staples monthly or biweekly

�Conclusion & Strategic Recommendations�

Conclusion

• TCPL’s use of structured segmentation bridges mass-market demand with premium product relevance
• Application of STP, VALS, and RFM enables tailored positioning across income, lifestyle, and purchase behavior
• Segmentation supports sharper brand differentiation and strengthens consumer loyalty

Strategic Recommendations

• Invest in digital-first analytics to refine psychographic personalization and RFM-driven CRM
• Scale health & wellness product visibility in high-growth zones like South & West India
• Align brand messaging with VALS types to connect emotionally with Achievers, Thinkers, and health-conscious consumers
• Leverage loyalty loops using high RFM customers to reduce churn and improve retention

Acknowledgement

I sincerely thank Ms. Roshini Ganesh, my project mentor through Qollabb under the guidance of Amity University Online, for her thoughtful direction, timely feedback, and consistent encouragement throughout the project.

Gratitude is also due to my wife, Roshani Ghimire, for her unwavering support, patience, and motivation that helped me stay focused and committed.

I appreciate the academic platform provided by Amity University Online, which enabled meaningful exploration of customer segmentation in the FMCG sector.

Finally, I’m thankful to my family and close friends for their quiet encouragement during this academic journey.

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Thank You!!!

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A Study on Customer Segmentation in the FMCG Sector

— Tata Consumer Products Ltd. | MBA Project | Amity University Online

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