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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

INTRODUCTION
1.1 Object of Project:
The project or presentation forms a very vital aspect during curriculum of Master Degree in business administration. During the first year student requires to undergo number of presentations these presentation are the integral part of MBA. All this certainly gives an overview about the organisation, various department in the organisation also deferent task performed and attributes required to perform such a task. The basic objectives of this study are to get knowledge about organisation and its management philosophy.

a)

To get an opportunity for understanding the life of business management.

b)

To get acquainted with organizational problems, perception & challenges.

c) d) e)

To get basic idea about company profile and products. To study the growth and expansion of organisation. Facilities provided by company

The project concludes with a written report, a presentation, and findings and recommendations. The programme integrates general management concepts that familiarise students with the knowledge required to be employed in numerous sectors in international organisations and environments.

Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

1.2

Selection of Topic:
Selling of any product, there is needed to build relationship with customer. For building a relationship there is need for knowing the customer behaviour and how will be they satisfied? This project is undertaken to know the consumer preference & buying behaviour towards vending machine of HUL (Lipton). Also through this project get awareness that which factors affect on the selling of vending machine of HUL (Lipton ) in the Nasik city area. Because the area where project was undergoing, it is almost industrial area. There were some limitations while doing the project. The data was collected by personal interviews of the respondents. It was very challenging to fill up the questionnaire as most of them did not show any interest in filling questionnaires. This study will help HUL to know the most popular way by which they are providing services and quality to the customers and to know various customers Perceptions. From the study, we found that, the customers were highly satisfied with the products and service of HUL, but there were some complaints regarding after sales. It was found that vending machine of HUL(Lipton ) is having a good brand image in the market. The present is the era of customers. Customers are more knowledgeable than ever before and because the customer is more knowledgeable, companies must be faster, more agile and more creative than few years ago. So companies should strive to enhance customer satisfaction through knowing their expectations regarding products.

Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

1.3

Objectives of study:
a) To know consumer behaviour for purchase vending machine of HUL (Lipton).

b) c)

Market share of competitors for Vending Machine in Nasik. To know Awareness of vending machines Among Sample respondent.

d)

To identify the factor which influences on consumers purchasing of vending machines.

e)

To know the role of advertisement (promotional activities) for creating awareness of vending machines.

f)

To know which medium play important role for purchasing Vending Machine.

g) h)

Study whether customers are satisfied with Product and services or not To study consumer preference for vending machine of HUL.

Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

1.4

Research Methodology:
1.4.1 Meaning of research: Research is a common parlance refers to a search for knowledge. One can also define research as a scientific & systematic search for pertinent information on a specific topic. In fact research is an art of scientific investigation. The meaning of research as a careful investigation or inquiry especially through search for new fact in any branch of knowledge. Redman & mory define research as a systematized effort to gain new knowledge. Some people consider research as a movement, a movement from the known to the unknown. 1.4.2 Sample Size : 150 industries.

1.4.3 Sampling Method: Sampling method used for this project is Simple random sampling Simple random sampling: This type of sampling is also known as chance sampling or probability sampling where each and every item in the population has an equal chance of inclusion in the sample and each and every item in the population has an equal chance of the same probability of being selected. 1.4.4 Source collecting the data: In dealing with any real life problem it is often found that data at hand are inadequate, and hence, it becomes necessary to collect data that are appropriate. There are several ways of collecting the appropriate data which differ considerably in context of money cost, time and other resources at the disposal of researcher. I. Primary data: Primary data collected for this project through personal interview. (i) Through personal interview:

The investigator follows a rigid procedure and seeks answers to the set of pre-conceived questions through personal interviews. This method of collecting data is usually carried out in a structured way where output depends upon the ability of the interviewer to a large extent.

Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

(ii)

By questionnaires: The researcher and the respondents do come in contact with each other if this method of survey is adopted. Questionnaires are mailed to the respondent with the request of return after completing the same. It is the most extensively used method in various economic and business survey.

II.

Secondary data: Here for this particular study we have use the secondary data collection it is the data which is not collected directly but obtained from the published and unpublished source and secondary data collected for this study are:

Through news paper. Magazines. Journal and books. Internet and websites. 1.4.5 Types of research: Type of research used for this project is Descriptive vs. Analytical. 1. Descriptive vs. Analytical: it includes surveys & fact-finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. In social science & business research we quite often use the term Ex post facto research for descriptive reset studies. The main characteristics of this method are that the researcher has no control over the variables; he can only report what was happened or what is happening. In analytical research, on the other hand, the researcher has to used facts or information already available.

1.4.6 Sample Unit: Industrial area in Nasik. 1.4.7 Sample Geography: Nasik MIDC area.

Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

1.5
(i)

Scope of Study:
This study helps to know the image of HUL products in customers mind.

(ii)

This study even helps to know about the market potential HUL vending business sector in Nasik region.

(iii)

This research also helps the company to know where they are lagging to their competitors and in order to increase the sales.

(iv)

The company can tap unknown market through these research studies available by increasing their potential of the product.

(v)

It gives position of all competitors in Nasik market

Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

1.6 (i)
(ii)

Significance:
Understanding their buying behaviour is one of the important aspects needed for small business marketing success. Unless you understand their buyer behaviour is is very hard to gain them as customers and keep them loyal.

(iii)

To get your customers to have an emotional attachment to your brand is one of the keys to keeping them loyal. As well it is one of the key factors in gaining referrals and recommendations.

(iv) (v)
(vi)

You need to have a clear understanding both the rational reasons and importantly the emotional reasons customers buy. Understanding this can help you with the timing of your marketing tactics. If you have a range of products and services it is a good idea to understanding which particular products or services they buy on a regular basis. By having this understanding you can make strategic decisions such as whether you keep the whole range, focus on one or two key products or services only.

(vii) Vending machines are machines that dispense drinks like tea, coffee, juice and other
consumer products that dont need a sales person.

(viii) Because of the fast-pace society we live in, we also need fast-paced machines to give
us what we need. (ix) The vending industries not only gives consumers the product they need, it also gives business opportunities to those who want to operate their own business without the need of high investment.

Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

1.7

Limitations:
(i) The training was for shorter period of time that is why it was not possible to carry out a detail study.

(ii) (iii)

The sample size was limited. The project period was after the pick season of Tea & Coffee, so it is difficult to convince outlet owners.

(iv)

Certain type of respondents such as important officials or executives or people in high income group may not be easily approachable under interview method and to that extent the data may prove inadequate.

(v)

The presence of interviewer on the spot may over stimulate the respondent, sometime even to the extent that he may give imaginary information just to make the interview interesting.

Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

1.8

Rational of study:
The study provides as good instrument for overall development for future manager as the student acquires both the theoretical as well as practical knowledge

The student develops qualities of good manager. Awareness regarding the industrial environment is mate to student. Study provides an opportunity to the management to take any corrective action based on results or recommendation.

Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

COMPANY PROFILE
Organisation Name:
Hindustan Unilever Limited (HUL)

2.1 Organisation Introduction:


HUL is India's largest consumer goods company based in Mumbai, Maharashtra. It is owned by the British-Dutch company Unilever which controls 52% majority stake in HUL. Its products include foods, beverages, cleaning agents and personal care products.

Hindustan Unilever's distribution covers over 2 million retail outlets across India directly and its products are available in over 6.4 million outlets in the country. As per Nielsen market research data, two out of three Indians use HUL products.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

2.2 History:
HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. Lever Brothers started its actual operations in India in the summer of 1888, when crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers" were shipped to the Kolkata harbour and it began an era of marketing branded Fast Moving Consumer Goods (FMCG). Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim. Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937. In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). These three companies merged to form HUL in November 1956; HUL offered 10% of its equity to the Indian public, being the first among the foreign subsidiaries to do so. Unilever now holds 52.10% equity in the company. The rest of the shareholding is distributed among about 360,675 individual shareholders and financial institutions. The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the company had launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was formed. Brooke Bond joined the Unilever fold in 1984 through an international acquisition. The erstwhile Lipton's links with India were forged in 1898. Unilever acquired Lipton in 1972, and in 1977 Lipton Tea (India) Limited was incorporated. Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986. Since the very early years, HUL has vigorously responded to the stimulus of economic growth. The growth process has been accompanied by judicious diversification, always in line with Indian opinions and aspirations.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

The liberalisation of the Indian economy, started in 1991, clearly marked an inflexion in HUL's and the Group's growth curve. Removal of the regulatory framework allowed the company to explore every single product and opportunity segment, without any constraints on production capacity. Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the most visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills Company (TOMCO) merged with HUL, effective from April 1, 1993. In 1996, HUL and yet another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Unilever Limited, to market Lakme's market-leading cosmetics and other appropriate products of both the companies. Subsequently in 1998, Lakme Limited sold its brands to HUL and divested its 50% stake in the joint venture to the company. HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994, Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary Pads. HUL has also set up a subsidiary in Nepal, Unilever Nepal

Limited (UNL), and its factory represents the largest manufacturing investment in the Himalayan kingdom.

The UNL factory manufactures HUL's products like Soaps, Detergents and Personal Products both for the domestic market and exports to India. The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on the Foods and Beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with significant interests in Instant Coffee. In 1993, it acquired the Kissan business from the UB Group and the Dollops Icecream business from Cadbury India. As a measure of backward integration, Tea Estates and Doom Dooma, two plantation companies of Unilever, were merged with Brooke Bond. Then in 1994, Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL), enabling greater focus and ensuring synergy in the traditional Beverages business. 1994 witnessed BBLIL launching the Wall's range of Frozen Desserts. By the end of the year,
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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

the company entered into a strategic alliance with the Kwality Icecream Group families and in 1995 the Milkfood 100% Icecream marketing and distribution rights too were acquired. Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998. The two companies had significant overlaps in Personal Products, Speciality Chemicals and Exports businesses, besides a common distribution system since 1993 for Personal Products. The two also had a common management pool and a technology base. The amalgamation was done to ensure for the Group, benefits from scale economies both in domestic and export markets and enable it to fund investments required for aggressively building new categories. In January 2000, in a historic step, the government decided to award 74 per cent equity in Modern Foods to HUL, thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. HUL's entry into Bread is a strategic extension of the company's wheat business. In 2002, HUL acquired the government's remaining stake in Modern Foods. In 2003, HUL acquired the Cooked Shrimp and Pasteurised Crabmeat business of the Amalgam Group of Companies, a leader in value added Marine Products exports. HUL launched a slew of new business initiatives in the early part of 2000s. Project Shakti was started in 2001. It is a rural initiative that targets small villages populated by less than 5000 individuals. It is a unique win-win initiative that catalyses rural affluence even as it benefits business. Currently, there are over 45,000 Shakti entrepreneurs covering over 100,000 villages across 15 states and reaching to over 3 million homes. In 2002, HUL made its foray into Ayurvedic health & beauty centre category with the Ayush product range and Ayush Therapy Centres. Hindustan Unilever Network, Direct to home business was launched in 2003 and this was followed by the launch of Pureit water purifier in 2004.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

In 2007, the Company name was formally changed to Hindustan Unilever Limited after receiving the approval of share holders during the 74th AGM on 18 May 2007. Brooke Bond and Surf Excel breached the the Rs 1,000 crore sales mark the same year followed by Wheel which crossed the Rs.2,000 crore sales milestone in 2008. On 17th October 2008 , HUL completed 75 years of corporate existence in India. In January 2010, the HUL head office shifted from the landmark Lever House, at Backbay Reclamation, Mumbai to the new campus in Andheri (E), Mumbai. On 15th November, 2010, the Unilever Sustainable Living Plan was officially launched in India at New Delhi. In March, 2012 HULs state of the art Learning Centre was inaugurated at the Hindustan Unilever campus at Andheri, Mumbai. In April, 2012, the Customer Insight & Innovation Centre (CiiC) was inaugurated at the Hindustan Unilever campus at Andheri, Mumbai

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

2.3 Organisation Profile:


HUL works to create a better future every day and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others. With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Ponds, Vaseline, Lakm, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Walls and Pureit.

The Company has over 16,000 employees and has an annual turnover of around Rs. 21,736 crores (financial year 2011 - 2012). HUL is a subsidiary of Unilever, one of the worlds leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about 46.5 billion in 2011. Unilever has about 52% shareholding in HUL.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

Hindustan Unilever Ltd Type : Public BSE: 500696 BSE SENSEX Constituent Industry Founded : : Consumer goods 1932 Mumbai, Maharashtra, India Harish Manwani (Chairman), Nitin Paranjpe (CEO and MD) Products : Foods, beverages, cleaning agents and personal care products Revenue : 19,401 crore (US$3.87 billion) (20102011) Net income : Employees : Parent Website : : 2,305 crore (US$459.85 million) 16,500 (2011) Unilever Plc (52%) www.hul.co.in

Traded as :

Headquarters: Key people :

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

2.4 Company Vision


Unilever products touch the lives of over 2 billion people every day whether that's through feeling great because they've got shiny hair and a brilliant smile, keeping their homes fresh and clean, or by enjoying a great cup of tea, satisfying meal or healthy snack. A clear direction The four pillars of our vision set out the long term direction for the company where we want to go and how we are going to get there:

We work to create a better future every day We help people feel good, look good and get more out of life with brands and services that are good for them and good for others.

We will inspire people to take small everyday actions that can add up to a big difference for the world.

We will develop new ways of doing business with the aim of doubling the size of our company while reducing our environmental impact.

We've always believed in the power of our brands to improve the quality of peoples lives and in doing the right thing. As our business grows, so do our responsibilities. We recognise that global challenges such as climate change concern us all. Considering the wider impact of our actions is embedded in our values and is a fundamental part of who we are.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

2.5 Company Purpose & principles


Our corporate purpose states that to succeed requires "the highest standards of corporate behaviour towards everyone we work with, the communities we touch, and the environment on which we have an impact." Always working with integrity Conducting our operations with integrity and with respect for the many people, organisations and environments our business touches has always been at the heart of our corporate responsibility.
Positive impact

We aim to make a positive impact in many ways: through our brands, our commercial operations and relationships, through voluntary contributions, and through the various other ways in which we engage with society.
Continuous commitment

We're also committed to continuously improving the way we manage our environmental impacts and are working towards our longer-term goal of developing a sustainable business.
Setting out our aspirations

Our corporate purpose sets out our aspirations in running our business. It's underpinned by our code of business Principles which describes the operational standards that everyone at Unilever follows, wherever they are in the world. The code also supports our approach to governance and corporate responsibility.
Working with others

We want to work with suppliers who have values similar to our own and work to the same standards we do. Our Business partner code, aligned to our own Code of business principles, comprises ten principles covering business integrity and responsibilities relating to employees, consumers and the environment.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

2.6 Company structure


Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods (FMCG) Company. It is present in Home & Personal Care and Foods & Beverages categories. HUL has over 16,500 employees, including over 1500 managers The fundamental principle determining the organisation structure is to infuse speed and flexibility in decision-making and implementation, with empowered managers across the companys nationwide operations. Executive directors: The Executive directors are members of the HUL Management Committee as well as the Board of HUL. Mr. Nitin Paranjpe - CEO and Managing Director Mr. Nitin Paranjpe (48) joined the Company as a Management Trainee in 1987. In his early years in the Company, Mr. Paranjpe worked as Area Sales Manager - Detergents and then Product Manager - Detergents. Mr. R. Sridhar - Chief Financial Officer Mr. Sridhar Ramamurthy (47) is a Chartered Accountant (Gold Medallist) as well as a Cost Accountant and Company Secretary. Mr Pradeep Banerjee - Executive Director, Supply Chain Mr. Pradeep Banerjee (51) joined HUL as a Management Trainee in 1980.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

Management Committee The day-to-day management of affairs of the Company is vested with the Management Committee which is subjected to the overall superintendence and control of the Board. The Management Committee is headed by Mr. Nitin Paranjpe and has functional heads as its members representing various functions of the Company

Mr. Nitin Paranjpe - CEO and Managing Director Mr. R. Sridhar - Chief Financial Officer Mr. Hemant Bakshi - Executive Director, Home & Personal Care Ms. Geetu Verma, Executive Director, Foods Mr. Manish Tiwary - Executive Director, Sales and Customer Development Mr Pradeep Banerjee - Executive Director, Supply Chain Ms. Leena Nair - Executive Director, HR Mr Dev Bajpai Executive Director, Legal and Company Secretary

Non-executive directors The Company has Non-Executive Chairman and four Non-Executive Independent Directors

Mr. Harish Manwani - Chairman Mr. A. Narayan - Independent Director Mr. S. Ramadorai - Independent Director Dr. R. A. Mashelkar - Independent Director Mr. O. P. Bhatt - Independent Director

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

2.7 Product line of Hindustan Unilever Limited.


I. Food brands HUL is one of Indias leading food companies. Our passion for understanding what people want and need from their food - and what they love about it - makes our brands a popular choice

Brooke Bond 3 Roses Brooke Bond Red Label Brooke Bond Taj Mahal Kissan Kwality Walls Modern

Annapurna Brooke Bond Taaza Bru Knorr Lipton Brooke Bond Sehatmand

II.

Home care brands HUL has a diverse portfolio of brands offering home care solutions for millions of consumers across India.

Active Wheel

Cif

Comfort Fabric Conditioner Domex Rin Surf Excel Sunlight Vim

III.

Personal care brands Our personal care brands, including Axe, Dove, Lux, Pond's, Rexona and Sunsilk, are recognised and love by consumers across India. They help consumers to look good and feel good and in turn get more out of life.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

Aviance LEVER Ayush Therapy Clear Closeup Gel Toothpaste Fair & Lovely Lakme Liril 2000 Pears Ponds Sunsilk

Axe Breeze Clinic Plus Dove Hamam Lifebuoy Lux Pepsodent Rexona Vaseline

Net Sales Rs. 19,401 Crores Net Profit Rs. 2,306 Crores

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

2.8 Out-of-home to push foods business:


The country's largest fast moving consumer goods (FMCG) company, Hindustan Unilever (HUL), is using out-of-home' aggressively to grow its foods business. Out-ofhome here means initiatives undertaken beyond just selling products. Polman had said out-of-home had a key role to play in galvanising its foods business in India. HUL Managing Director Nitin Paranjpe agreed: "Out-of-home is a very significant opportunity. And we will look to leverage that." The company has taken few steps in that direction, with the launch of three Bru cafes in three cities, including Mumbai, recently. Bru is the coffee brand of HUL. The move, say FMCG analysts, is to build traction for the brand on the ground, something Paranjpe doesn't deny. He said, "We will systematically approach the business of foods, enter categories, take up initiatives, where Unilever has an advantage and where we will be able to build the market for the long-term." Even as it steps into the cafe space, HUL is also ramping up its Swirls ice-cream parlours. "At the moment, we have 130 of them," said Paranjpe. "We will add rapidly to the number in 2011, possibly one a week." On packaged foods, while there is no plan to do anything out-of-home, the company has been using experiential marketing tools to increase awareness and improve sampling. During the launch of Knorr soupy noodles last year, vans dishing out portions of it were posted at different locations in cities such as Mumbai. As HUL attempts to push its foods business using out-of-home, analysts say the success of it will depend on how much business these outlets can generate. Paranjpe does not get into the details of how much these outlets, especially the Swirls parlours, are generating at the moment. But the service model has been a difficult one for other FMCG companies. Amul, for instance, is looking to discontinue its pizza and ice cream parlours.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

Distribution network of HUL ooh division: OOH division has a very basic distribution network, with materials coming directly from factory to depot & from there to distributors. Fron distributors it directly goes to customers. Haryana region has 16 distributors, with service part, taken care by eureka Forbes for all customers.

FACTORY

DEPOT

DEPOT

Distributer Customer

Distributer Customer

Distributer Customer

Distributer Customer

As far as sales lead generation & acquisition of accounts is concerned, that is done by HUL OOH divisions personnel, & later those accounts are alloted to distibutors depending on their size & capability of handling an account. Then distibutors technician team would install the machine. On an average per month a distibutors sells 5-6 tonnes of materials, the largest distibutor in the region has a sale of 15-18 tonnes of premix. On an average a distibutors has 8% to 12% margine in products given by the company.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

2.9 Prospect market capture by hunting process:

Cold Calling Meeting


Quotation send

Discussion
Rate finalisation

Installation

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

2.10 Awards and honours 2011


In 2011, HUL received more than 70 awards and honours. Here's a list of some of them: HUL received the prestigious 'Golden Peacock Global Award' for Corporate Social Responsibility

HUL received the 'Golden Peacock Environment Management Award' in the FMCG sector

HUL received the 'Outstanding CSR Award' in the FMCG category at the India Shining Star Awards organised by Wockhardt Foundation

HUL conferred the 'Best Sustainability & CSR Practices Award' by the Asian Centre for Corporate Governance & Sustainability

HUL received the 'Rolta Corporate Award' for the top Indian Company in the FMCG sector at the awards ceremony organised by Dun & Bradstreet
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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

HUL has been awarded the National Award for Excellence in Corporate Governance by the ICSI HUL was recognised as one of the 'Top Five Indian Companies in Corporate Governance' by IR Global Rankings

HUL has earned the award for the Best FMCG Company of the Year by CNBC Awaaz Storyboard Consumer Awards

HUL has been ranked No.2 in the Fortune India's Most Admired Companies list (announced in 2012)

HUL has been ranked sixth in the list of 'The World's Most Innovative Companies' published by Forbes magazine

HUL emerged as the 'Dream Employer' in the annual B-School Survey conducted by A.C. Nielsen.

HUL has been recognised as the Best Employer Brand in Asia at the Asia's Best Employer Brand Awards

HUL awarded CII-Prize for Leadership in HR Excellence

HUL has been awarded the 'No. 1 Best Employer for 2011 in India' by Outlook Business and Aon Hewitt

HUL ranked sixth in the list of 'Global Top Companies for Leaders 2011 Study Results' by Aon Hewitt, The RBL Group, and Fortune

The Pureit in-home water purifier received the 'UNESCO Water Digest Award' in the 'Best Domestic

Non-Electric Water Purifier', and the 'Best Water R&D and Technological Breakthrough' categories
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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

Pure it Compact was voted 'Product of the Year 2011' in the 'Water Purifier' category at the globally-acclaimed consumers' recognition forum.

Pure it Compact received the votes of 30,000 consumers from 36 markets across the country, in an online study conducted by A.C. Nielsen

Six HUL brands have been ranked among the Top 15 brands in Brand Equity's 'India's Most Trusted Brands Survey' conducted by A.C. Nielsen

HUL's Khamgaon factory received the 'Greentech Environment Excellence Award' in the FMCG category

HUL's Khamgaon factory received the Gold Award in FMCG Sector for Outstanding Achievement in Safety Management

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

PRODUCT PROFILE
3.1 Vending Solution Market: Beverage Vending Solution market in India is roughly 15 years old, which marked the entry of Nescafe in the market. In next some years, others players like HUL, CCD, Barista etc. entered in this market. In order to have a better understanding of the vending solutions market we first need to study, thats why a vending machine is preferred by corporate houses & other institutes & organization. Cost Savings: Each of the vended beverages contains exactly the same amount of ingredients. It is found that the biggest saving comes from the reduction in the need for fresh milk as the machine holds powdered milk. The powdered mixes are great & can add a really good creamy froth on beverages. Drink Choice: Modern vending machine are not only compact but can offer 8 or more choices that can include anything from an espresso to a regular Tea, flavored teas caf latte, moccachino, chocachino, cappuccino & yes plain white or black coffee too. Drinks can be selected with or without sugar & milk too, allowing an incredible choice of beverages. Its great to offer clients & staff real choices. Convenience: There is no waiting for the kettle to boil when you have a vending machine. It remains on & ready for the moment you press the button. So be it late in night or early in the morning, it can vend a hot cup of beverages anytime & also fast. This also adds value in the coffee environment where getting a quick cup of tea/coffee, means exactly that. Hygiene: As the vending machine holds all the ingredients inside airtight canisters, there are no messy containers left out on kitchen or pause area tables to attract ants or cockroaches. The machines have automatic rinsing cycles and hot water is flushed through the dispensing pipes & mixing bowls to keep them clean. Reliability: Modern machine are robust & will vend cup without interruption. Only things is needed to be done is to keep them clean & empty the waste containers & replace a few rubber seals every now & then after all the are exposed to heat & water

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

Services: Wide CoverageThe service infrastructure of OOH covers over 300 concessionaries across 100 plus towns with over 600 dedicated skilled technicians to facilitate 24/7 technical support & assistance. Strong resourcingour trained and well equipped technical, sales & support teams are fully geared to meet all your services & maintainance requirements. We also have a wide footprint to support natonal deals, keeping pace with the growth aspirations of our clients as they expand into new regions. World Class Researchwe have a global Unilever research centre, at Bangalore which has world class research facilities which give us an edge in product & technical innovation. SafetyHot water auto flush feature in machines for auto cleaning of mixing units at regular intervals. Also temperature lock feature in machines is provided to ensure that drinks dont get dispensed below minimum specified temperatute. HygineEasily detachable machine parts to facilitate cleaning. Also the machine has an intrusion resistant design so as to have minimum possibilities of external impurities getting inside. QualityAll machines undergo strict internal quality checks & audits. All products are microbiologically tested, & are safe for consumption. ConsistencyThe DC motors in the machine are better suited to handle voltage fluctuations. Patented canister design for smooth & consistent flow of premixes. External AuditFor regular monitoring & better control we have engaged an independent agency to conduct external audits & MIS reports to generates unbiased feedback. The agency also provides elaborate demonstrations for the operators to uplift the safety & hygine standardes at sites.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

3.2 Lipton Vending Machines We are one of the leading authorized dealers of Vending Machines across the country. Manufactured using premium quality raw material, advanced machines, tools and equipment in compliance with latest market trends, these are available in various sizes, shapes and other associated specification for our clients. Moreover, these are quality tested on various parameters to ensure their high quality, strength and dependability. Our clients can avail these vending machines from us at the most competitive prices.

We offer qualitative range of cold and hot vending machines, it is used in offices, hotels, fast food joints, cafeterias and in many other places. Our range of vending machines such as 4 lane u cup vending machine, single option vending machines, 3 lane vending machines, 2 lane vending machines, high speed vending machine, 4 lane vending machines are manufactured by using high grade raw material and adheres to the international standards. We also have expertise in offering customized solutions to our customers.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

Smart Card Machine:


Features: Option of 5 ingredients in nature of coffee, tea soup etc. Post or prepaid option through smart card Option of consumption data down loading to PC for MIS processing. Staggered dispensing option for tea bag Temperature interlocking Auto Cleaning Water source- Built in tank bubble top

This mechanism can be provided to suit the need of big establishments. The card reader can be externally attached to the vending machine. Specification: Dimension Height-890 mm

Width-440 mm

Depth- 585 mm

Weight Power Supply Absorbed Power Canister Capacity

60 kg 230 Volts/50Hz 200 watts 1.2 kg

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

High speed machine:


Featurs: Option of 5 ingredients in nature of coffee, dairy whitener , soup etc. Option of simultaneous dispensing of any 3 drinks. Option of Cappuccion Staggered whitener Dispensing rate 15 cups/min of 100 ml each (approx 250 cups non-stop) Temperature interlocking Auto cleaing Water Source - Built-in water tank/Online We offer a wide selection of Lipton high speed machine coffee machines perfect for bulk coffee making in hotel industry. Our coffee machines brew hot, delicious coffee and specialty coffee in just few seconds. These machines are made of quality steel and equipment using superior technology to meet the required specifications of our client's Specification: Specification: Dimensions Height- 890mm Width-440mm Depth- 585mm Weight Power Supply Absorbed Power Canister Capacity 60kg 230Volts/50Hz 2500 watts _ 1.2 kg dispensing option for dairy

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

Fresh brew machine:


Features: Option of 4 ingredients in the nature of coffee beans, dairy whitener, soup etc Proving 10 drinks option including 6 options of fresh beans coffee. Dispensing rate-2 cup/min of 100 ml Temperature interlocking Water Source- On-line / Bubble top.

Our range of Fresh Brew Machines is widely appreciated and in high demand. These are a type of instant coffee machine, which has got a high demand in the global markets. These machines are capable of making delicious and hot coffee within few seconds. These coffeemakers are excellent coffee making equipments that have been procured from reputed brands like Rancilio. We provide them in different technical varieties and makes at market leading prices. Specification: Dimensions Height - 665 mm Length - 410 mm Depth - 560 mm Weight Power Supply Observed Power Pre- mix canister cap. Coffee bean canister cap. 50 Kg 230 Volt/ 50 Hz 2000 Watts 1 Kg 1 Kg

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

2 Lane (Cute) Vending Machine


Featurs: Option of 2 ingredients Dispensing Rate (cups/min)- 03-05 Cups Boiler Capacity - 2.0 Ltrs. (Insulated) 21 Half Cup Facility Digital Counters Auto cleaning Water Source - 20 Ltrs. (Bubble Top)

Specification:

Specifications Machine Dimension (WDH)mm Premix Capacity (each lane) Weight of Machine Max. Load Power Supply Mixing Unit Separate Hot Water Option Hi-speed Option Password Locking in PCB

Lane 2 (Cute) 200 X 440 X 625 1.2 kg each 15 kg 1.4 Kw. 230 AC, 15A 1 No No No

2 Lane (Robo) Vending Machine


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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

Features: Option of 2 ingredients Dispensing Rate (cups/min)- 04-06 Cups Temperature Interlocking Password Locking in PCB Boiler Capacity - 2.0 Ltrs. (Insulated) 21 Half Cup Facility Digital Counters Auto cleaning
Water Source - 20 Ltrs. (Bubble Top)

Specification:

Specifications Machine Dimension (WDH)mm Premix Capacity (each lane) Weight of Machine Max. Load Power Supply Mixing Unit Separate Hot Water Option Hi-speed Option

Lane 2 (Robo) 330 X 430 X 620 1.2 kg each 22 kg 2.2 Kw. 230 AC, 15A 2 No No

2 Lane Machine:

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

Features: Option of 2 ingredients Dispensing Rate (cups/min)- 04-06 Cups Temperature Interlocking Password Locking in PCB Boiler Capacity - 2.60 Ltrs. (Insulated) Half Cup Facility Digital Counters (for Each Lane) Auto cleaning
Water Source - 20 Ltrs. (Bubble Top)

Specification:

Machine Dimension (W*D*H)mm Premix Capacity (each lane) Weight of Machine Max. Load Power Supply Separate Hot Water Option Hi-Speed Opt. (8-10 cups/min.)

330 X 430 X 620

1.2 kg. 28 kg 2.2 Kw 230V AC, 15A Yes Yes

3 Lane ( Robo) Vending Machine:


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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

Features: Option of 3 ingredients Dispensing Rate (cups/min)- 04-06 Cups Temperature Interlocking Password Locking in PCB Boiler Capacity - 2.6 Ltrs. (Insulated) 21 Half Cup Facility Digital Counters Auto cleaning Water Source - 20 Ltrs. (Bubble Top) Specification: Water Source - 20 Ltrs. (Bubble Top) Specifications Machine Dimension (WDH)mm Premix Capacity (each lane) Weight of Machine Max. Load Power Supply Mixing Unit Separate Hot Water Option Hi-speed Option Lane 3 (Robo) 330 X 430 X 620 1.2 kg each 23 kg 2.2 Kw. 230 AC, 15A 3 No No

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

3 Lane Machine
Features: Option of 3 ingredients Dispensing Rate (cups/min)- 04-06 Cups Temperature Interlocking Password Locking in PCB Boiler Capacity - 2.6 Ltrs. (Insulated) 21 Half Cup Facility Digital Counters Auto cleaning Water Source - 20 Ltrs. (Bubble Top) Specification: Water Source - 20 Ltrs. (Bubble Top) Machine Dimension (WDH)mm Premix Capacity (each lane) Weight of Machine Max. Load Power Supply Mixing Unit Separate Hot Water Option Hi-speed Option 330 X 430 X 620 1.2 kg each 23 kg 2.2 Kw. 230 AC, 15A 3 Yes Yes

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

4 Lane Machine:
Features: Option of 4 ingredients Dispensing Rate (cups/min)- 04-06 Cups Temperature Interlocking Password Locking in PCB Boiler Capacity - 3 Ltrs. (Insulated) Half Cup Facility Digital Counters (for Each Lane) Auto cleaning Water Source - 20 Ltrs. (Bubble Top) We are one of the leading suppliers of 4 Lane Coffee Vending Machines. These machines are highly suitable for making 4 cups of coffee at same time. Water Source - 20 Ltrs. (Bubble Top) Manufactured using high quality material, our range is rust free and can work for longer period Specification:

Machine Dimension (W*D*H)mm Premix Capacity (each lane) Weight of Machine Max. Load Power Supply Separate Hot Water Option Hi-speed Opt. (8-10 cups/min.)

330 X 520 X 660 1.2 kg each 28 kg 2.2 Kw. 230V AC, 15A Yes Yes

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

The New 4 Lane U Cup Machine:


Features: Option of 4 ingredients in nature of coffee, tea, soup etc. Staggered dispensing option for tea bag Temperature interlocking Auto cleaning Water source- online/ bubble top

HUL is one of the leading suppliers of 4 lane coffee vending machine.

Specification:
Height- 650mm Widtht-325mm Dimension Depth-590mm Weight Power Supply Absorbed Power Canister Capacity 25 Kg 230V/50Hz 2500 Watts 1 Kg

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

6 Lane Machine:
Features: Option of 6 ingredients Dispensing 04/06/11Cups Temperature Interlocking Password Locking in PCB Boiler Capacity - 3 Ltrs. (Insulated) Half Cup Facility Digital Counters (for Each Lane) Auto cleaning Water Source - 20 Ltrs. (Bubble Top) Specification: Water Source - 20 Ltrs. (Bubble Top) Rate (cups/min)-

Height- 620mm Machine Dimension (W*D*H)mm Width-470mm Depth-430mm Premix Capacity (each lane) Weight of Machine Max. Load Power Supply Separate Hot Water Option 1.2 kg 35 kg 2.4 Kw 230V AC, 15A Yes

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

3.3 Premixes for Lipton machine:


Our Lipton premix provides a rich taste and essence. Specially prepared for tea drinkers, they contain no artificial flavors, colors and preservatives. 100% natural, they are also available in various flavors of cardamom, masala, lemon. just by adding hot water, one can easily relish its taste. We are one of the prominent manufacturers, suppliers and exporters of a wide range of Tea Premix. 1) Hot Lemon Tea Premix: Lemon flavour brings out that real punch of the fruit and is an excellent choice for a hot or iced tea. We are well equipped with proper warehousing facilities to store our product. Lemon flavor brings out that real punch of the fruit and is an excellent choice for a hot or iced tea. We are well equipped with proper warehousing facilities to store our products.

2) Lipton Cardamom Tea Premix: We are one of the reputed companies that supply a quality range of Lipton Cardamom Tea all across the country. These are hygienically prepared and are highly appreciated by our clients all over the nation. We are also offering hot tea along with cardamom to give excellent flavour. Our products are highly used in canteens, restaurants, colleges, hospitals and many more.

Features: Widely used in various places Very tasty Popular

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

3) Lipton Hot Lemon Tea (Black):

Lipton Hot Lemon Tea (Black) is a unique product from the stables of Lipton that also comes with several other flavours and forms. Tea has always been a staple product used in the cultural diets for centuries even though research has just started providing how beneficial they could be to our health. This tea includes several herbal ingredients available in several flavors and varieties.

4) Lemon Ice Tea Premix:


Low Calorie, no artificial flavors. Ingredients: Sugar(91%), Acidifying Agent (330), Instant tea, Salt, Lime Juice powder, Sucralose (sweetener). Lipton Ice Tea gives you great refreshment and its Healthy.

5) Milk Badam
We also serve delicious Milk Badaam to our valued clients. Best quality nuts / badaam are used in preparing this drink. The flavour of this drink is very tasty and mouth watering. This can me drank in winters using warm milk instead of cold milk. This is a nutritional drink and is demanded by the customers. Features: Nutritious and healthy Fresh Relishing

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

6) Bru Coffee: We are also offering a wide range of Bru coffee through our machines. These are being processed using high grade coffee beans sourced from a reliable and certified dealer. The coffee powder is easily mixed with milk and water. The taste of the coffee is very refreshing and soothing. We are supplying these products according to the needs of our clients.

Features: Delicious taste Authentic texture Highly popular Gives natural flavor

Highly demanded 7) Dairy Milk Powder: Our firm is one of the leading firms that supply a quality range of Dairy Milk Powder all around the country. These are quality tested at every stage of production as per the international standards and norms. The powder is very helpful in reducing the cholesterol and purifying blood. We are offering these products as per the requirements of our clients.

Features: Stringent test Pure Knorr Tomato soup powder Demanding

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

8) Knorr Tomato soup powder


In the series of Premixes, we are also supplying a quality range of Knorr Soups to meet the demands of our customers. These are best soups available in the market. Different flavors and varieties are available in these soups. The ingredients that are mixed in the soups are white pepper, soy and dry fenugreek leaf. Soups are the starters that are had before the main course. But people all over the world have soups as snack. We offer nutritionally rich Tomato Soup Powder that are mixed in boiled water and served hot. The delicious Soup Mixes offered by us are prepared from

Lipton Tea Premix (sugar Free):


Features: Delicious Widely appreciated Popular

fresh vegetables and spices.

9) Lipton Tea Premix (sugar Free):


Tea has never tasted so good. Enjoy the sweet, tart taste of LIPTON sugar free Tea Mix, an instant glass of sugar-free, berry-filled flavor. LIPTON sugar free tea mix has a sweet, tart taste. Mix with water and enjoy an instant glass of sugar-free, berry-filled flavor. LIPTON sugar free Tea Mix has total refreshment down. Instant refreshment is yours anytime with the powdered mixes.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

THEORY RELATED WITH PROJECT


4.1 Consumer Markets and Consumer Buyer Behaviour. Buying behaviour is never simple, yet understanding it is essential task of marketing management. Consumer buyer behaviour refers to the buying behaviour of final consumers-individual and households that buy goods and services for personal consumption. All of these final consumers combine to make up the consumer market. Consumers around the world vary tremendously in age, income, education level, and tastes. They also buy an incredible variety of goods and services. Hoe these diverse consumers relate with each other and with other elements of the worlds around their choice among various products, services, and companies. Here examine the fascinating array of factors that affect consumer behaviour.

1.2Model of Consumer Behaviour:

We can measure the input to consumer buying decisions- for example, Apple introduces new iTouch device and features it in TV ads. And we can often measures the outputs of consumer buy the new Apple device at the companys Web site within a week of introduction

But its very difficult to see inside the consumers head and figure out the whys of buying behaviour (Thats why its called the Black Box). Marketers spend lot of time and money trying to figure out what makes customer tick.

The environment Marketing stimuli Other Product Economic Price Technological Place Social Promotion Cultural

Buyers black box Buyers characteristics Buyers decision process

Buyer responses Buying attitude and preferences purchase behaviour: what the buyer buys, when, where, and how much Brand and company relationship behaviour

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

4.3 Characteristics of consumer behaviour:


Consumer purchases are influenced strongly by cultural, social, personal and psychological characteristics shown in Figure I. Cultural Factors

Cultural factor exert a broad and deep influence on consumer behaviour. The marketers need to understand the role played by the buyers culture, subculture, and social class. a) Culture: Culture is the most basic cause of a persons want and behaviour. Growing up in society, a child learned basic values, perception, wants, and behaviour from the family and other important institute. A child normally learns or is exposed to the following values: achievements and success, activity and involvement, efficiency and practicability, progress, hard work, material comfort, respect for elders, humanitarianism, youthfulness, and fitness and health. Every group or society has culture, and culture influences on buying behaviour may vary greatly from country to country. Failure to adjust these differences can result in ineffective marketing or embarrassing mistakes. b) Subculture : Each culture contains smaller subcultures, or groups of people with shared value systems based on common life experience and situations. Subcultures include nationalities, religions, racial groups, and geographic regions. Many subcultures make up important market segments, and markters also design products and marketing program tailored to their need. c) Social Class: Almost every society has some form of social class structure. Social Classes are societys relatively permanent and ordered divisions whose member shares similar values, interest and behaviour. Social factor is not determined by a single factor , such as income but is measured as a combination of occupation , income, education, wealth, and other variables.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

II.

Social Factors:

A consumers behaviour also is influenced by social factors, such as the consumers small groups, family, and social roles and status. a) Groups and Social Networks: Many small groups influence a persons behaviour. Groups that have a direct influence and to which a person belongs are called membership groups. In contrast, reference groups serve as direct (faceto- face) or indirect points of comparison or reference in forming a person's attitudes or behaviour. Reference groups to which they do not belong often influence people. Marketers try to identify the reference groups of their target markets. Reference groups expose a person to new behaviours and lifestyles, influence the person's attitudes and self-concept, and create pressures to conform that may affect the person's product and brand choices. The importance of group influence varies across products and brands. It tends to be strongest when the product is visible to others whom the buyer respects. Manufacturers of products and brands subjected to strong group influence must figure out how to reach opinion leaderspeople within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert influence on others. Many marketers try to identify opinion leaders for their products and direct marketing efforts toward them. In other cases, advertisements can simulate opinion leadership, thereby reducing the need for consumers to seek advice from others. The importance of group influence varies across products and brands. It tends to be strongest when the product is visible to others whom the buyer respects. Purchases of products that are bought and used privately are not much affected by group influences because neither the product nor the brand will be noticed by others.

b) Family:
Family members can strongly influence buyer behaviour. The family is the most important consumer buying organization in society, and it has been researched extensively. Marketers are interested in the roles and influence of the husband, wife, and children on the purchase of different products and services.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

Husband-wife involvement varies widely by product category and by stage in the buying process. Buying roles change with evolving consumer lifestyles. Such changes suggest that marketers who've typically sold their products to only women or only men are now courting the opposite sex. For example, with research revealing that women now account for nearly half of all hardware store purchases, home improvement retailers such as Home Depot and Builders Square have turned what once were intimidating warehouses into female friendly retail outlets. The new Builders Square II outlets feature decorator design centres at the front of the store. To attract more women, Builders Square runs ads targeting women in Home, House Beautiful, Woman's Day, and Better Homes and Gardens. Home Depot even offers bridal registries. Similarly, after research indicated that women now make up 34 percent of the luxury car market, Cadillac has started paying more attention to this important segment. Male car designers at Cadillac are going about their work with paper clips on their fingers to simulate what it feels like to operate buttons, knobs, and other interior features with longer fingernails. The Cadillac Catera features an air-conditioned glove box to preserve such items as lipstick and film. Under the hood, yellow markings highlight where fluid fills go. Children may also have a strong influence on family buying decisions. For example, it ran ads to woo these "back-seat consumers" in Sports Illustrated for Kids, which attracts mostly 8- to 14- year-old boys. "We're kidding ourselves when we think kids aren't aware of brands," says Venture's brand manager, adding that even she was surprised at how often parents told her that kids played a tie-breaking role in deciding which car to buy. In the case of expensive products and services, husbands and wives often make joint decisions. c) Roles and Status A person belongs to many groupsfamily, clubs, organizations. The person's position in each group can be defined in terms of both role and status. A role consists of the activities people are expected to perform according to the persons around them. Each role carries a status reflecting the general esteem given to it by society. People usually choose products appropriate to their roles and status.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

III.

Personal Factors

A buyer's decisions also are influenced by personal characteristics such as the buyer's age and lifecycle stage, occupation, economic situation, lifestyle, and personality and selfconcept.

a) Age and Life-Cycle Stage


People change the goods and services they buy over their lifetimes. Tastes in food, clothes, furniture, and recreation are often age related. Buying is also shaped by the stage of the family life cyclethe stages through which families might pass as they mature over time. Marketers often define their target markets in terms of life-cycle stage and develop appropriate products and marketing plans for each stage. Traditional family life-cycle stages include young singles and married couples with children. b) Occupation A person's occupation affects the goods and services bought. Blue-collar workers tend to buy more rugged work clothes, whereas white-collar workers buy more business suits. Marketers try to identify the occupational groups that have an above-average interest in their products and services. A company can even specialize in making products needed by a given occupational group. Thus, computer software companies will design different products for brand managers, accountants, engineers, lawyers, and doctors. c) Economic Situation A person's economic situation will affect product choice. Marketers of incomesensitive goods watch trends in personal income, savings, and interest rates. If economic indicators point to a recession, marketers can take steps to redesign, reposition, and reprice their products closely. d) Lifestyle People coming from the same subculture, social class, and occupation may have quite different lifestyles. Life style is a person's pattern of living as expressed in his or her psychographics. It involves measuring consumers' major AIO dimensionsactivities (work, hobbies, shopping, sports, social events), interests (food, fashion, family, recreation), and opinions (about themselves, social issues, business, products). Lifestyle

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

captures something more than the person's social class or personality. It profiles a person's whole pattern of acting and interacting in the world. Several research firms have developed lifestyle classifications. It divides consumers into eight groups based on two major dimensions: self-orientation and resources. Selforientation groups include principle-oriented consumers who buy based on their views of the world; status-oriented buyers who base their purchases on the actions and opinions of others; and action-oriented buyers who are driven by their desire for activity, variety, and risk taking. Consumers within each orientation are further classified into those with abundant resources and those with minimal resources, depending on whether they have high or low levels of income, education, health, self-confidence, energy, and other factors. Consumers with either very high or very low levels of resources are classified without regard to their self-orientations (actualizers, strugglers). Actualizers are people with so many resources that they can indulge in any or all self-orientations. In contrast, strugglers are people with too few resources to be included in any consumer orientation. e) Personality and Self-Concept Each person's distinct personality influences his or her buying behavior. Personality refers to the unique psychological characteristics that lead to relatively consistent and lasting responses to one's own environment. Personality is usually described in terms of traits such as self-confidence, dominance, sociability, autonomy, defensiveness, adaptability, and aggressiveness. Personality can be useful in analyzing consumer behaviour for certain product or brand choices. For example, coffee marketers have discovered that heavy coffee drinkers tend to be high on sociability. Thus, to attract customers, Starbucks and other coffeehouses create environments in which people can relax and socialize over a cup of steaming coffee. Many marketers use a concept related to personalitya person's self-concept (also called self-image). The basic self-concept premise is that people's possessions contribute to and reflect their identities; that is, "we are what we have." Thus, in order to understand consumer behavior, the marketer must first understand the relationship between consumer self-concept and possessions. For example, the founder and chief executive of Barnes & Noble, the nation's leading bookseller, notes that people buy books to support their selfimages

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

IV.

Psychological Factors
A person's buying choices are further influenced by four major psychological factors: motivation, perception, learning, and beliefs and attitudes. a) Motivation A person has many needs at any given time. Some are biological, arising from states of tension such as hunger, thirst, or discomfort. Others are psychological, arising from the need for recognition, esteem, or belonging. Most of these needs will not be strong enough to motivate the person to act at a given point in time. A need becomes a motive when it is aroused to a sufficient level of intensity. A motive (or drive) is a need that is sufficiently pressing to direct the person to seek satisfaction. Psychologists have developed theories of human motivation. Two of the most popularthe theories of Sigmund Freud and Abraham Maslowhave quite different meanings for consumer analysis and marketing. Maslow's Theory of Motivation

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

Abraham Maslow sought to explain why people are driven by particular needs at particular times. Why does one person spend much time and energy on personal safety and another on gaining the esteem of others? Maslow's answer is that human needs are arranged in a hierarchy, from the most pressing to the least pressing. Maslow's hierarchy of needs is shown in Figure. In order of importance, they are physiological needs, safety needs, social needs, esteem needs, and self-actualization needs. A person tries to satisfy the most important need first. When that need is satisfied, it will stop being a motivator and the person will then try to satisfy the next most important need. For example, starving people (physiological need) will not take an interest in the latest happenings in the art world (self-actualization needs), nor in how they are seen or esteemed by others (social or esteem needs), nor even in whether they are breathing clean air (safety needs). But as each important need is satisfied, the next most important need will come into play. b) Perception A motivated person is ready to act. How the person acts is influenced by his or her own perception of the situation. All of us learn by the flow of information through our five senses: sight, hearing, smell, touch, and taste. However, each of us receives, organizes, and interprets this sensory information in an individual way. Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world. People can form different perceptions of the same stimulus because of three perceptual processes: selective attention, selective distortion, and selective retention. People are exposed to a great amount of stimuli every day. For example, the average person may be exposed to more than 1,500 ads in a single day. It is impossible for a person to pay attention to all these stimuli. Selective attentionthe tendency for people to screen out most of the information to which they are exposedmeans that marketers have to work especially hard to attract the consumer's attention. Even noted stimuli do not always come across in the intended way. Each person fits incoming information into an existing mind-set. Selective distortion describes the tendency of people to interpret information in a way that will support what they already believe. Selective distortion means that marketers must try to understand the mind-sets

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

of consumers and how these will affect interpretations of advertising and sales information. c) Learning When people act, they learn. Learning describes changes in an individual's behaviour arising from experience. Learning theorists say that most human behaviour is learned. Learning occurs through the interplay of drives, stimuli, cues, responses, and reinforcement. d) Beliefs and Attitudes Through doing and learning, people acquire beliefs and attitudes. These, in turn, influence their buying behaviour. A belief is a descriptive thought that a person has about something. Buying behaviour differs greatly for a tube of toothpaste, a tennis racket, an expensive camera, and a new car. More complex decisions usually involve more buying participants and more buyer deliberation. Figure shows types of consumer buying behaviour based on the degree of buyer involvement and the degree of differences among brands.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

4.4 Types Buying Behaviours


High involvement Significant differences between brands Few differences between brands Complex buying behaviour Low involvement Variety-seeking buying behaviour

Dissonance reducing buying behaviour

Habitual buying behaviour

I.

Complex Buying Behaviour Consumers undertake complex buying behaviour when they are highly involved

in a purchase and perceive significant differences among brands. Consumers may be highly involved when the product is expensive, risky, purchased infrequently, and highly self-expressive. Typically, the consumer has much to learn about the product category. For example, a personal computer buyer may not know what attributes to consider.

Many product features carry no real meaning: a "Pentium Pro chip," "super VGA resolution," or "megs of RAM." This buyer will pass through a learning process, first developing beliefs about the product, then attitudes, and then making a thoughtful purchase choice. Marketers of high-involvement products must understand the information-gathering and evaluation behaviour of high-involvement consumers. They need to help buyers learn about product-class attributes and their relative importance, and about what the company's brand offers on the important attributes. Marketers need to differentiate their brand's features, perhaps by describing the brand's benefits using print media with long copy. They must motivate store salespeople and the buyer's acquaintances to influence the final brand choice. II. Dissonance-Reducing Buying Behaviour Dissonance reducing buying behaviour occurs when consumers are highly involved with an expensive, infrequent, or risky purchase, but see little difference among brands. For example, consumers buying carpeting may face a high-involvement decision because carpeting is expensive and self-expressive. Yet buyers may consider most carpet brands in a given price range to be the same. In this case, because perceived brand differences are not large, buyers may shop around to learn what is available, but buy

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

relatively quickly. They may respond primarily to a good price or to purchase convenience. After the purchase, consumers might experience post purchase dissonance (aftersale discomfort) when they notice certain disadvantages of the purchased carpet brand or hear favourable things about brands not purchased. To counter such dissonance, the marketer's after-sale communications should provide evidence and support to help consumers feel good about their brand choices. III. Habitual Buying Behaviour Habitual buying behaviour occurs under conditions of low consumer involvement and little significant brand difference. For example, take salt. Consumers have little involvement in this product categorythey simply go to the store and reach for a brand. If they keep reaching for the same brand, it is out of habit rather than strong brand loyalty. Consumers appear to have low involvement with most low-cost, frequently purchased products. In such cases, consumer behaviour does not pass through the usual beliefattitude-behaviour sequence. Consumers do not search extensively for information about the brands, evaluate brand characteristics, and make weighty decisions about which brands to buy. Instead, they passively receive information as they watch television or read magazines. Ad repetition creates brand familiarity rather than brand conviction. Consumers do not form strong attitudes toward a brand; they select the brand because it is familiar. Because they are not highly involved with the product, consumers may not evaluate the choice even after purchase. Thus, the buying process involves brand

beliefs formed by passive learning, followed by purchase behavior, which may or may not be followed by evaluation. Because buyers are not highly committed to any brands, marketers of low-involvement products with few brand differences often use price and sales promotions to stimulate product trial. In advertising for a low-involvement product, ad copy should stress only a few key points. Visual symbols and imagery are important because they can be remembered easily and associated with the brand. Ad campaigns should include high repetition of short-duration messages. Television is usually more effective than print media because it is a low-involvement medium suitable for passive learning. Advertising planning should be based on classical conditioning theory, in which buyers learn to identify a certain product by a symbol repeatedly attached to it.
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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

Marketers can try to convert low-involvement products into higher-involvement ones by linking them to some involving issue. Procter & Gamble does this when it links Crest toothpaste to avoiding cavities. At best, these strategies can raise consumer involvement from a low to a moderate level. However, they are not likely to propel the consumer into highly involved buying behaviour. IV. Variety-Seeking Buying Behaviour Consumers undertake variety seeking buying behaviour in situations

characterized by low consumer involvement but significant perceived brand differences. In such cases, consumers often do a lot of brand switching. For example, when buying cookies, a consumer may hold some beliefs, choose a cookie brand without much evaluation, then evaluate that brand during consumption. But the next time, the consumer might pick another brand out of boredom or simply to try something different. Brand switching occurs for the sake of variety rather than because of dissatisfaction. In such product categories, the marketing strategy may differ for the market leader and minor brands. The market leader will try to encourage habitual buying behaviour by dominating shelf space, keeping shelves fully stocked, and running frequent reminder advertising. Challenger firms will encourage variety seeking by offering lower prices, special deals, coupons, free samples, and advertising that presents reasons for trying something new.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

4.5 Buyer Decision Process


Now that we have looked at the influences that affect buyers, we are ready to look at how consumers make buying decisions. Figure shows that the buyer decision process consists of five stages: need recognition, information search, evaluation of alternatives, purchase decision, and post purchase behaviour. Clearly, the buying process starts long before actual purchase and continues long after. Marketers need to focus on the entire buying process rather than on just the purchase decision. The figure implies that consumers pass through all five stages with every purchase. But in more routine purchases, consumers often skip or reverse some of these stages. A woman buying her regular brand of toothpaste would recognize the need and go right to the purchase decision, skipping information search and evaluation. However, we use the model in Figure because it shows all the considerations that arise when a consumer faces a new and complex purchase situation.
Need Reorganisation Information search Evaluation of alternative Purchase decision Post purchase behaviour

I.

Need Recognition The buying process starts with need recognitionthe buyer recognizes a problem

or need. The buyer senses a difference between his or her actual state and some desired state. The need can be triggered by internal stimuli when one of the person's normal needshunger, thirstrises to a level high enough to become a drive. A need can also be triggered by external stimuli. At this stage, the marketer should research consumers to find out what kinds of needs or problems arise, what brought them about, and how they led the consumer to this particular product. By gathering such information, the marketer can identify the factors that most often trigger interest in the product and can develop marketing programs that involve these factors.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

II.

Information Search An aroused consumer may or may not search for more information. If the

consumer's drive is strong and a satisfying product is near at hand, the consumer is likely to buy it then. If not, the consumer may store the need in memory or undertake an information search related to the need. At one level, the consumer may simply enter heightened attention. The consumer can obtain information from any of several sources. These include personal sources (family, friends, neighbours, acquaintances), commercial sources (advertising, salespeople, dealers, packaging, displays, Web sites), public sources (mass media, consumer-rating organizations), and experiential sources (handling, examining, using the product). The relative influence of these information sources varies with the product and the buyer. Generally, the consumer receives the most information about a product from commercial sourcesthose controlled by the marketer. The most effective sources, however, tend to be personal. Commercial sources normally inform the buyer, but personal sources legitimize or evaluate products for the buyer. People often ask othersfriends, relatives, acquaintances, professionalsfor recommendations concerning a product or service. Thus, companies have a strong interest in building such word-of-mouth sources. These sources have two chief advantages. First, they are convincing: Word of mouth is the only promotion method that is of consumers, by consumers, and for consumers. Having loyal, satisfied customers that brag about doing business with you is the dream of every business owner. Not only are satisfied customers repeat buyers, but they are also walking, talking billboards for your business. Second, the costs are low. Keeping in touch with satisfied customers and turning them into word-of-mouth advocates costs the business relatively little. As more information is obtained, the consumer's awareness and knowledge of the available brands and features increases. The information also helped her drop certain brands from consideration. A company must design its marketing mix to make prospects aware of and knowledgeable about its brand. It should carefully identify consumers' sources of information and the importance of each source. Consumers should be asked how they first heard about the brand, what information they received, and what importance they placed on different information sources.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

III.

Evaluation of Alternatives We have seen how the consumer uses information to arrive at a set of final brand choices. How does the consumer choose among the alternative brands? The marketer needs to know about alternatives evaluationthat is, how the consumer processes information to arrive at brand choices. Unfortunately, consumers do not use a simple and single evaluation process in all buying situations. Instead, several evaluation processes are at work. The consumer arrives at attitudes toward different brands through some evaluation procedure. How consumers go about evaluating purchase alternatives depends on the individual consumer and the specific buying situation. In some cases, consumers use careful calculations and logical thinking. At other times, the same consumers do little or no evaluating; instead they buy on impulse and rely on intuition. Sometimes consumers make buying decisions on their own; sometimes they turn to friends, consumer guides, or salespeople for buying advice. Marketers should study buyers to find out how they actually evaluate brand alternatives. If they know what evaluative processes go on, marketers can take steps to influence the buyer's decision. IV. Purchase Decision In the evaluation stage, the consumer ranks brands and forms purchase intentions. Generally, the consumer's purchase decision will be to buy the most preferred brand, but two factors can come between the purchase intention and the purchase decision. The first factor is the attitudes of others. The second factor is unexpected situational factors. The consumer may form a purchase intention based on factors such as expected income, expected price, and expected product benefits. However, unexpected events may change the purchase intention. Thus, preferences and even purchase intentions do not always result in actual purchase choice. V. Post purchase Behaviour The marketer's job does not end when the product is bought. After purchasing the product, the consumer will be satisfied or dissatisfied and will engage in post purchase behaviour of interest to the marketer. What determines whether the buyer is satisfied or dissatisfied with a purchase? The answer lies in the relationship between the consumer's
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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

expectations and the product's perceived performance. If the product falls short of expectations, the consumer is disappointed; if it meets expectations, the consumer is satisfied; if it exceeds expectations, the consumer is delighted. The larger the gap between expectations and performance, the greater the consumer's dissatisfaction. This suggests that sellers should make product claims that faithfully represent the product's performance so that buyers are satisfied. Some sellers might even understate performance levels to boost consumer satisfaction with the product. For example, Boeing's salespeople tend to be conservative when they estimate the potential benefits of their aircraft. They almost always underestimate fuel efficiencythey promise a 5 percent savings that turns out to be 8 percent. Customers are delighted with better-thanexpected performance; they buy again and tell other potential customers that Boeing lives up to its promises. Almost all major purchases result in cognitive dissonance, or discomfort caused by post purchase conflict. After the purchase, consumers are satisfied with the benefits of the chosen brand and are glad to avoid the drawbacks of the brands not bought. However, every purchase involves compromise. Consumers feel uneasy about acquiring the drawbacks of the chosen brand and about losing the benefits of the brands not purchased. Thus, consumers feel at least some post purchase dissonance for every purchase. Why is it so important to satisfy the customer? Such satisfaction is important because a company's sales come from two basic groupsnew customers and retained customers. It usually costs more to attract new customers than to retain current ones, and the best way to retain current customers is to keep them satisfied. Customer satisfaction is a key to making lasting connections with consumersto keeping and growing consumers and reaping their customer lifetime value. Satisfied customers buy a product again, talk favourably to others about the product, pay less attention to competing brands and advertising, and buy other products from the company. Many marketers go beyond merely meeting the expectations of customersthey aim to delight the customer. A delighted customer is even more likely to purchase again and to talk favourably about the product and company. A dissatisfied consumer responds differently. Whereas, on average, a satisfied customer tells 3 people about a good product experience, a dissatisfied customer gripes
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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

to 11 people. In fact, one study showed that 13 percent of the people who had a problem with an organization complained about the company to more than 20 people. Clearly, bad word of mouth travels farther and faster than good word of mouth and can quickly damage consumer attitudes about a company and its products. Therefore, a company would be wise to measure customer satisfaction regularly. It cannot simply rely on dissatisfied customers to volunteer their complaints when they are dissatisfied. Some 96 percent of unhappy customers never tell the company about their problem. Companies should set up systems that encourage customers to complain. In this way, the company can learn how well it is doing and how it can improve. The 3M Company claims that over two-thirds of its new-product ideas come from listening to customer complaints. But listening is not enoughthe company also must respond constructively to the complaints it receives.

4.6 Participants in buying process: Roles


Initiators

Activity
The individual in the organisation who first recognise the need for service or product.

Influencer

The individual who affect the buying decision either directly or indirectly.

Decider

The individual who have authority to decide supplier who will provide the service or product.

Buyers Users

The individual who will actually make the purchase. The individual within the organisation who will use the service or product.

Gatekeepers

The individual who will control the flow of information into buyers centre.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

DATA ANALYSIS 5.1 Analysis on basis of factor analysis


Component 1 Sr.no 1 Life cycle Cost Overall cost of cup/ beverage Ease of operation HUL Prices are more as compared to Nestle & in case of small low cost producers, like Amazon FHCL etc., it is difficult to complete HUL provides an array of vending machines, for special needs of customer like smart card operated machine, for educational institute like NIIT, Educomp, etc. These machines can be used to download data for MIS purposes also. These machines also offer convenience of half & full cup. Can work as a differentiating factor for HUL. As features like microprocessor controlled Water temperature, inbuilt digital counter, hardware lock, auto flesh system reduce maintained. Although now most companies follow these standards.

Lower Maintains

Component 2 Sr.no Brand Value 1 Consumer Preferences HUL HUL with its strong brand of Taj Mahal in tea enjoys similar position, as that of Nestle in coffee market. With recent revamping of its coffee brand BRU, Company is trying to create strong consumer base in coffee market also. HUL with its Lipton & BRU brands in vending solution market enjoys limited brand awareness as Compared to nestle & even CCD. Thus this is one of the prime area of improvement for OOH divisions. HUL claims to have a strong after sales support to its customer, with its fortnightly audits & expansive distributor network it provides service to its customers. On market survey it was found that there is enough room of improvement for OOH division on this, as this can be a strong differentiating factor for company.
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Brand Image

After Sales Services

Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

5.2 Cost comparison of vending machine v/s pantry:


In order to make a valid point in favour of vending machine for cusomers, a cost benefit analysis has to be done for them, which could actualy show them that how this offer is more economical to their organizations. A similar cost benefit analysis is shown below:S.N o No.of employees Overall daily Consumption ( no.of cups) Daily consumption Of Tea ( no.of cups) Daily consumption Of Coffee ( no.of cups) Monthly Cost in pantry (Rs.) Monthly cost in Vending Machine (Rs.) Rent (Rs.) Total billing in Vending Machine (Rs.)

1. 2. 3. 4. 5. 6.

20-40 50-100 100-200 200-400 500-1000 1500-3000

60 170 300 600 1000 3500

35 100 170 350 600 2000

25 70 130 250 400 1500 Table 5.1

12750 36000 64500 127500 210000 750000

4350 12300 21900 44400 72000 255000

800 800 0 0 0 0

5150 13100 21900 44400 72000 255000

As clearly shown in the above table, cost benefit for the organizations is quantified in terms of the no. of employees in the organization, which gives us approximate daily consumption of the beverages in the company. As most of the companies & organizations outsource pantry to a third party.

800000 700000 600000 Cost in Rs. 500000 400000 Cost of pantry 300000 200000 100000 0 Cost of vending machine

Number of employees

Graph 5.1

Source: from available prices of tea and coffee.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

5.3 Survey analysis:


1. Strength of employees.

Strength of employee In organization refer for survey


Range of strength No. Of Organization Percentage 0-20 70 47% 20-100 45 30%
Table 5.2

100-300 25 17%

300-2000 10 6%

Total 150 100

70 70 Number of organisation in perticular range 60 50 40 30 20 45

strenght of employee In organisation

0-20 21-100 25 101-300 301-2000 10

10 0 0-20 21-100 101-300 301-2000 Range of employee strenght

Graph 5.2

Source: Primary data (Questionnaire).

Interpretation: We have visited 150 organisations out of which 70 organisation having their strength 0 to 20. 45 organisation having strength between 20 to 100. 25 organisation with strength 100 to 300 10 organisation having strength between 300 to 2000. As 47% organisation having strength 0 to 20 and 30% organisation having strength 21 to 100. These segments have huge market for vending machines in Nasik.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

2. Industrial occupation / the type of firm Industrial occupation Agricultu re Sector 18 12% Manufactu ring 37 25% Retailing service sector 40 27%
Table 5.3

Bank

Hospital

Educational

Total

8 5%

17 11%

15 10%

15 10%

150 100

Industrial Occupation
10% 10% Agriculture Sector 11% 25% Manufacturing Retailing service sector 5% 27% bank Hospital Educational 12%

Graph 5.3

Source: Primary data (Questionnaire).

Interpretation: To study the buying behaviour of customer towards vending machine it is important to get an idea about the organisations working environment and culture in our survey we come across 18 Agricultural, 37 Manufacturing, 8 Retailing, 40 Service sector, 17 Banks, 15 Hospitals, 15 Educational organisations. According to above segments, for vending machines both Institutional and Government markets are huge.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

3. Daily hot beverages you offering to your staff Daily hot beverages Tea only 45 30% Coffee only 0 0% Tea and coffee 95 63%
Table 5.4

Not offering 10 7%

Total 150 100

Organisation offer to staff

100 95 50 45 0 tea only 0 coffee only tea and coffee Not Offering Beverages 10

Graph 5.4

Source: Primary data (Questionnaire).

Interpretation: From 150 organisations 30% organisations offers only tea to their employee. No organisation offers only coffee, 95 organisations offers tea and coffee both and 10 are not offering anything. Culture and custom can strongly influence business buyer reaction to marketers behaviour. And in India peoples are less habitual to coffee than tea but most of the organisation offers Tea and coffee both to their employee.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

4. The most convenient way to serve the hot beverages

Most convenient way to serve beverages Vending Machine 60 40% Boiled tea 50 33%
Table 5.5

Outside buying 40 27%

Total 150 100

Most convenient way to serve beverages

Outsode buying 27%

Vending Machine 40%

Vending Machine Boiled tea

Boiled tea 33%

Outsode buying

Graph 5.5

Source: As per the data got from questionnaire.

Interpretation: 27% organisations take the beverages from outside, while 33% are use to serve the boiled tea or coffee from own canteen facility and 40% organisations have vending machine for same purpose. 40% Vending machines user shows that business buyer affected by technological developments in the environments.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL 5. Having Vending Machine

Having vending machine Yes 60 40% No 90 60%


Table 5.6

Total 150 100

Vending Machine
90

90 80 70 60 50 40 30 20 10 0 Yes No 60 Yes No

Graph 5.6

Source: As per the data got from questionnaire.

Interpretation: From 150 60 are using vending machines while 90 are using other sources. Business buyers determine which products and services their organisations need to purchase and then find, evaluate, and choose among alternative suppliers and brand. To increase the customers of vending machine from 40% B-to-B marketers must do their best to understand business markets and business buyer behaviour.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL 6. The provider of vending machine and premix

vending machine and premix provider Nestle Premix Vending Machine 34% 33% Lipton 50% 50% Table 5.7 CCD 3% 3% Instta 10% 5% Good morning 3% 9%

Vending machines and premix in market


60% Percentage of having perticular brand 50% 40% 34% 30% 20% 10% 0% nestle Lipton 10% 3% 3% CCD Brands 5% Instta 9% 3% Good morning 33% Premix Vending Machine 50% 50%

Graph 5.7

Source: As per the data got from questionnaire.

Interpretation: There are 33% clients for Nestls vending machine while 34% Clients of Premix of Nestle.50% clients of HUL for both vending machines and premix. But Instta have 5% clients of vending machines and 10% clients of premix. Also in case of Good morning they have 9% clients of vending machines and 3% clients of premix. Customer has different type of machine & they also use different companies premix.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

7. Brands of Vending Machine you are aware of Brand do you aware about Nestle 60 40% Lipton 65 43% CCD 10 7%
Table 5.8

Instta 10 7%

Good Moring 5 3%

Total 150 100

70 60 60 50 40 30 20

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Awareness of Brands

nestle lipton ccd Instta G.M 10 10 5

10 0 nestle lipton ccd Instta

G.M

Graph 5.8

Source: As per the data got from questionnaire.

Interpretation: As it is important to create awareness of brand to increase the market according to survey 60 institutes or company are aware about Nestls vending services, 65 are aware about Lipton, 10 are aware about CCD and Instta each, 5 aware about Good morning. HUL is successful to create awareness about Lipton vending machine in Nasik as compare to others.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL 8. Customer conscious about brand

Conscious about brand Yes 94 63% No 56 37%


Table 5.9

Total 150 100%

Consious about brand

37% yes no 63%

Graph 5.9

Source: As per the data got from questionnaire.

Interpretation: 94 i.e 63% business buyers are Brand conscious and 56 i.e 37% business buyers are not brand conscious. Brand are more than just names and symbols Brand represents consumers perception and feelings about a product and its performance. It is said that Products are created in factory but brands are created in mind.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

9. Factors due to which customers dont like to prefer Vending Machine

Factors due to which customers dont like to prefer Vending Machine


Taste 60 67% Quality 25 28% Maintenance 5 5% Table 5.10 Price 0 0% Total 90 100

Factors due to which customers dont like to prefer Vending Machine


60 60 50 Taste 40 30 20 10 0 5 0 25 Quality Mantenance Price

Graph 5.10

Source: As per the data got from questionnaire.

Interpretation: 60 buyers are not using machine tea because they are not satisfied with taste of tea from vending machine, 25 refuse to take machine tea or coffee because of Quality of tea and coffee and 5 are not using vending machines due to maintenance problem. Though there is technical development and buyer has capacity to pay some of the buyers not using machine tea because they are not satisfied with taste of beverages.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

10. Purchasing of Vending Machine

purchasing vending machine Outright purchase 30 50% 10 17%


Table 5.11

Free

On rent

Total

20 33%

60 100

purchasing vending machine

on rent 33%

Outright Purchase 50%

Outright Purchase free on rent

free 17%

Graph 5.11

Source: As per the data got from questionnaire.

Interpretation: From 60, 30 are using machine with outright purchase, 10 are using free machines, and 20 are using vending machines on rent. HUL is providing free machines to their customer where intake of tea and coffee is large. And some retailers are using machine on rent for business purpose.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

11. View of customers about Advertisements create more awareness of vending service

Advertisement creates more awareness about vending machine Agree 100 67% Disagree 50 33%
Table 5.12

Total 150 100

Advertisement creates more awareness about vending machine

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 67% Disagree Agree 33%

Graph 5.12

Source: As per the data got from questionnaire.

Interpretation: 67% of customers agreed that advertisements are important to create awareness about vending machines. While 33% are not agreed with advertisements are very important. Thought HUL has good awareness in market of Lipton vending machines advertisements are important to create brand value in customers mind

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

12. Do you have any other Vending Machine before Purchase new Vending Machine Other Brand's vending machines before current Vending Machine Yes 20 33% No 40 67% Total 60 100

Table 5.13

Have other Brand's vending machine before current vending machines

40 No 20 Yes

10

20

30

40

Graph 5.13

Source: As per the data got from questionnaire.

Interpretation: 20 customers of vending machine was using other brands vending machine and their service and 40 customers are loyal to one brand only. 67% customers are satisfied with their vending machine provider and service given by their provider. 67% customers are loyal customer to their brand. HUL need to focus on new customers in market.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL 13. The reasons for purchasing new vending machines

Reason to switch on the brand of V.M Old out of function 10 17% To change the taste 25 42% Table 5.14 Price 12 20% To try new 13 21% Total 60 100

Reasons to switch on the brand of V.M

100%

17%

80%

20% Old out of function Price 21%

60%

To try new service To change the taste

40% 42% 20%

0%

Graph 5.14

Source: As per the data got from questionnaire.

Interpretation: 42% of customers change their provider and brand of vending machine to change the taste 21% customers are not happy with current vending services so they want to try new vending services 20% customers change their vending services because of fluctuation in prices of vending machines. And 17% customers faced the problem with functioning of vending machine. Customers always need some change in taste; they want to try different things and different flavours.
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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

14. Rate the factors you consider while purchasing a Vending Machine Factors consider for purchasing Price Quality Taste Function After sales service Not important at all Not much important Important Very important Weight average method Rank 18 38 57 37 103.2 4 0 0 30 120 142.2 2 0 0 55 95 136.2 3 Table 5.15
140 120 120 100 80 60 40 20 0 57 38 37 18 00 00 30 55 60 52 20 18 00 60 53 45 40 35 30 95 140

Brand

Ingredients

18 20 60 52 111.5 5

0 0 10 140 147.5 1

23 53 60 14 91.25 7

30 35 45 40 98.75 6

not important at all not much important important very important

23 10 14

Graph 5.15

Source: As per the data got from questionnaire.

Interpretation: 57 customers are saying that price is considering factor for purchasing new vending machine.120 are saying that quality is very important, for 95 customers taste is important, and 140 are saying that after sales service is more important for them, 60 are more conscious about brand. As per the survey it has been seen that customer are giving more preference to the after sales service, therefore, the service providers task is to make the service tangible in one or more ways and to send the right signals about quality.
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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

15. Rate the following schemes that attract you most.

Scheme attracts more Free machine 40 67% Free service 20 33% Table 5.16 Total 60 100

Scheme attracts more

Free Service 33% free machine 67% free machine Free Service

Graph 5.16

Source: As per the data got from questionnaire.

Interpretation: 67% customers are more attracted towards the scheme of free machines and 33% customers are more attracted towards scheme of vending machines with free service. HUL is providing scheme of vending machines to the organisations where daily intake of beverages in high.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

16. If someone in your reference group and wants to purchase a new Vending machine, would you suggest your companys brands

Suggest other to take a brand you are using Yes 50 83% No 10 17% Total 60 100

Table 5.17

Suggest other to take a brand you are using

100% 80% 60%

17%

No Yes 83%

40% 20% 0%

Graph 5.17

Source: As per the data got from questionnaire.

Interpretation: 50 customers would like to suggest other to take the brand they are using. And 10 would not like to suggest others to take the same brand. Interpersonal factors and individual factors plays important role to influence the buyer

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

5.4 SWOT Analysis:

Strengths:
Strong and well differentiated brand with leading share position. Strong R&D capability. Integrated and efficient supply chain. Attractive design and distinctive features of machine. Good market response. Wide range of tea and coffee premix are provided. Good quality management.

Weaknesses:
Much higher Machine prices as compare to other brands. Revenue is low during offseason. Tea and coffee are less prefer in the summers. Complex configuration. People complaints about health problem due to machine tea. supply chain

Opportunities:
Market growth through increasing penetration in the anventured industrial area. Changing lifestyles increase the opportunity market. Growing consumption in out of home category. Developing technology to more products that provides Nutrition, Health and wellness. Hosting functions the will different games, the to increase the

Threats:
Other competitors like Nestle, CCD. Comparative prices of Lipton are higher than other competitors. Consumption of product varies according to seasonality.

influence

development of vending operators to fill the gap in the market.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

FINDINGS
1. Customers are more attracted towards the promotional schemes provided by company, in HUL promotional strategies for vending machines are not good.

2. This business is mostly focus on industrial area, but now there is large scope for this business in institutes and hospitals, malls, bus stands etc. 3. Lipton tea and coffee are more hygienic and better taste than other vending machines. 4. Most of the customers are ready to installed vending machines which will be freely installed. 5. It is found that distributors are demanding more margins from company. 6. Small customers expect regular maintenance as given to big institutional buyer. 7. It is found that many new customers are interested in buying vending machines and premix. 8. It is found that there is no proper available stock in godowns for most preferable flavour of premix.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

CONCLUSION
According to collected data through this survey we get an idea about consumer preference and buying behaviour of the consumer. In survey it is found that most of the consumers prefer the boiled tea than machine tea, but machine tea is more hygienic than boiled tea and coffee from out of Home. Many companies in Nasik now changing their minds toward the vending machine to serve the daily hot beverages to their employee, because of low costing and hygienic. The study concludes that the HUL has to strengthen its product line by introducing new flavours in new sizes. It has to increase its stock holding capacity and availability of premix.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

SUGGESTIONS
Following are some suggestions that can be implemented to increase the customer satisfaction and profitability of the company Hindustan Unilever Lmt. 1. Lipton has to improve their after sales service to give more satisfaction to their customers.

2. Some companies wants to change their machines due to some technical problems but the prices of Lipton are higher than other brands and Local brands. 3. Company should improve the distribution channel management. 4. Different kinds of offer provide by the company where more convenient that the customer will able to access that offer. 5. The company should launch the new innovative schemes or premix so that customer get attracts and will keep machine and premix. 6. The company should collect the proper feedback from customer to know their preferences and satisfaction level.

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL
CONSUMER PREFERENCES AND BUYING BEHAVIOUR OF CUSTOMER TOWARDS VENDING MACHINE OF HUL. Name Of Company: Add: Contact No. : Total Employees:

1. Strength of employees. a. 0 to 20 b. 20 to 100 c. 100 to 300 d. 300 to 2000 2. Industrial occupation / the type of firm a. Primary (farming, forestry, fishing quarrying etc) b. Manufacturing c. Retailing and distribution d. Service industries e. Public service f. Armed forces g. Education h. Professions (doctors, dentists, architects etc) i. Others 3. What you offering to your staff for daily hot beverages ? a. Tea only b. Coffee only c. d. Tea & coffee both Not applicable [ [ [ [ ] ] ] ] [ ] [ [ [ [ [ [ ] ] ] ] ] ] [ [ [ [ ] ] ] ]

4. Total number of cups / day? __________________ 5. Source of beverages ? a. Own canteen b. Procurement from outside c. Any other arrangement________________
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[ [

] ]

Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

6. What will be the most convenient way to serve the hot beverages? a. Vending machine b. Boiled tea c. Outside buying 7. If boiled tea do you know about vending services ? a. Yes b. No [ [ ] ] [ [ [ ] ] ]

8. If yes which brands of Vending Machine are you aware of? a. HUL b. Nestle c. Other___________________________ 9. Is the customer conscious about brand? a. Yes b. No 10. Do you have your own Vending Machine? a. Yes b. No 11. If yes, machine who is the provider? a. HUL b. Nescafe c. Other____________________ 12. If no, why dont you prefer machine tea? a. Dont know about it b. Taste c. Maintains d. Costing e. Quality f. Bad after sale service g. Never used before 13. How do you purchase Vending Machine? a. On Sold b. On Rent c. Free [ [ [ ] ] ] [ [ [ [ [ [ [ ] ] ] ] ] ] ] [ [ ] ] [ [ ] ] [ [ ] ] [ [ ] ]

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

14. Do you have any other Vending Machine before Purchase new Vending Machine a. Yes [ ] b. No [ ] If yes, then reason for purchasing new one,
(i) Old Vending Machine out of function/problematic (ii) Better & Modern Vending Machine available (iii) Capacity of old Vending Machine is not sufficient [ [ [ ] ] ]

(iv) Any other_________________________________ 15. Who is decision maker for purchasing Vending Machine in your firm? a. higher managerial b. intermediate managerial c. Supervisory [ [ [ ] ] ]

16. View of customers about Advertisements create more awareness of vending service: a. Yes b. No 17. Rate the factors you consider while purchasing a Vending Machine? 1 a. Price 2 3 4 5 [ [ ] ]

b. Quality

c.

Taste

d. Functions / Features Offered

e. After-sale service

f. Brand

g. Ingredients of premix 18. Who influenced you while purchasing the Vending Machine? a. Friends (Word of mouth) b. Employee c. Media(Advertisement) d. By internet [ [ [ [ ] ] ] ]

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

19. Which premix tastes do you like most? a. Nestle b. Lipton c. Other____________________ 20. How you rate your vending services? a. Poor b. Average c. Good d. Excellent [ [ [ [ ] ] ] ] [ [ ] ]

21. Do you intent to buy Vending Machine in near future with new features? a. Yes b. No 22. What features would you like to have in your Vending Machine? Specify_______________________________________________________________ ________________________________________________ 23. When did you purchase/would like to purchase Vending Machine? a. When promotional schemes are open b. irresponsive of promotional schemes [ [ ] ] [ [ ] ]

24. Rate the following schemes that attract you most. a. New Machine b. Free Machine c. Free premix 25. If someone in your reference group and wants to purchase a new Vending machine, would you suggest your companys brands? a. Yes b. No [ [ ] ]

If No, then why: ________________________________ 26. Your suggestion for improvement in the existing services ? _____________________________________________________________________ _____________________________________________________________________ __________________________________________________________________

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Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

BIBLIOGRAPHY
List of books.
1. Principles of Marketing-13th edition by Philip Kotler, Gary Armstrong,Prafulla Y. Agnihotri, Ehsan ul Haque 2. Research Methodology Methods & techniques-2nd edition by C.R. Kothari 3. Marketing Managemen-13th edition t by Kotler, keller, Koshy, Jha.

List of Journals
1. Indian journal of Marketing Volume 41 4. Indian journal of Marketing Volume 42 5. Focus Websites 1. 2. 3. 4. www.unilever.com www.wikipedia.org/wiki/Lipton www.lipton.com www.coffeevendingmachines.in/beverage-vending-machines.html Number 1 Jan 2012 Number 5 May 2011

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