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LCM MBA Research Report On Promotional Strategies of HUL PDF
LCM MBA Research Report On Promotional Strategies of HUL PDF
Submitted To: MISS P.VAKULA Submitted By: RAJEEV KUMAR MBA (II SEM)
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ACKNOWLEDGEMENT
The research on “PROMOTIONAL STRATEGY OF HINDUSTAN UNILEVER LTD..” has been given
to me as part of the curriculum in the completion of 2-Years Master of business
Administration. I have tried my best to present this information as clearly as
possible using basic terms that I hope will be comprehended by the widest spectrum
of researchers, analysts and students for further studies. I have completed this
project under the able guidance and supervision of Miss NAMRATA TRIPATHI. I will be
failed in my duty if I do not acknowledge the esteemed scholarly guidance,
assistance and knowledge I have received from them towards fruitful and timely
completion of this work.
We also thanks NIRMA DISTIBUTER & DELER‟S, INDORE who believed in us and by
providing ALL valuable information and data that helped us in understanding the
problem areas of their organization and hence developing the application as per
their requirements.
FROMANSHUL TIWARI
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INDEX
Sr. No.
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.
Contents
EXECUTIVE SUMMARY INTRODUCTION OBJECTIVE LITERATURE REVIEW (COMPANY PROFILE) DATA
ANALYSIS DATA INTERPRETATION HYPOTHESIS FINDINGS RECOMMENDATIONS CONCLUSION
BIBLIOGRAPHY ANNEXURE
Page No.
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EXECUTIVE SUMMARY
Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods
company, with leadership in Home & Personal Care Products and Foods & Beverages.
HUL's brands, spread across 20 distinct consumer categories, touch the lives of two
out of three Indians. They endow the company with a scale of combined volumes of
about 4 million tonnes and sales of nearly Rs.13,718 crores. The mission that
inspires HUL's over 15,000 employees is to "add vitality to life". With 35 Power
Brands, HUL meets everyday needs for nutrition, hygiene, and personal care with
brands that help people feel good, look good and get more out of life. It is a
mission HUL shares with its parent company, Unilever, which holds 51.55% of the
equity. The rest of the shareholding is distributed among 360,675 individual
shareholders and financial institutions. A Fortune 500 transnational, Unilever
sells Foods and Home and Personal Care brands in about 100 countries worldwide. HUL
is also one of the country's largest exporters; it has been recognised as a Golden
Super Star Trading House by the Government of India. Over time HUL has developed
into a viable & competitive sourcing base for Unilever world wide in Home and
Personal Care & Foods & Beverages category of products. HUL is also a global
marketing arm for select licensed
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Unilever brands and also works on building categories with core country advantage
such as branded basmati rice.
HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's,
Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna,
Kwality Wall's – are household names across the country and span many categories -
soaps, detergents, personal products, tea, coffee, branded staples, ice cream and
culinary products. They are manufactured over 40 factories across India. The
operations involve over 2,000 suppliers and associates. HUL's distribution network,
comprising about 4,000 redistribution stockists, covering 6.3 million retail
outlets reaching the entire urban population, and about 250 million rural
consumers.
HUL believes that an organisation's worth is also in the service it renders to the
community. HUL is focusing on health & hygiene education, women empowerment, and
water management. It is also involved in education and rehabilitation of special or
underprivileged children, care for the destitute and HIV-positive, and rural
development. HUL has also responded in case of national calamities / adversities
and contributes through various welfare measures, most recent being the village
built by HUL in earthquake affected Gujarat, and relief & rehabilitation after the
Tsunami caused devastation in South India.
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In 2001, the company embarked on an ambitious programme, Shakti. Through Shakti,
HUL is creating micro-enterprise opportunities for rural women, thereby improving
their livelihood and the standard of living in rural communities. Shakti also
includes health and hygiene education through the Shakti Vani Programme, and
creating access to relevant information through the iShakti community portal. HUL
is also running a rural health programme – Lifebuoy Swasthya Chetana. If Hindustan
Unilever straddles the Indian corporate world, it is because of being single-minded
in identifying itself with Indian aspirations and needs in every walk of life.
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HISTORY
YEAR MILESTONES 1888 Sunlight soap introduced in India. 1895 Lifebuoy soap
launched; Lever Brothers appoints agents in Mumbai, Chennai, Kolkata, and Karachi.
1902 Pears soap introduced in India. 1903 Brooke Bond Red Label tea launched. 1905
Lux flakes introduced. 1913 Vim scouring powder introduced. 1914 Vinolia soap
launched in India. 1918 Vanaspati introduced by Dutch margarine manufacturers like
Van den Berghs, Jurgens, Verschure Creameries, and Hartogs.
1922 Rinso soap powder introduced. 1924 Gibbs dental preparations launched. 1925
Lever Brothers gets full control of North West Soap Company. 1926 Hartogs registers
Dalda Trademark. 1930 1931 Unilever is formed on January 1 through merger of Lever
Brothers and Margarine Unie. Hindustan Vanaspati Manufacturing Company registered
on November 27; Sewri factory site bought. Application made for setting up soap
factory next to the Vanaspati factory at Sewri; Lever Brothers India Limited
incorporated on October 17.
Soap manufacture begins at Sewri factory in October; North West Soap 1934 Company's
Garden Reach Factory, Kolkata rented and expanded to produce Lever brands. 1935
United Traders incorporated on May 11 to market Personal Products. 1937 Mr. Prakash
Tandon, one of the first Indian covenanted managers, joins HVM.
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1939 1941 1942
1943 Personal Products manufacture begins in India at Garden Reach Factory. 1944
1958 Research Unit starts functioning at Mumbai Factory. 1959 Surf launched. 1961
Mr. Prakash Tandon takes over as the first Indian Chairman; 191 of the 205 managers
are Indians.
1962 Formal Exports Department starts. 1963 Head Office building at Backbay
Reclamation, Mumbai, opened. 1964 Etah dairy set up, Anik ghee launched; Animal
feeds plant at Ghaziabad; Sunsilk shampoo launched.
1965 Signal toothpaste launched; Indian shareholding increases to 14%. Lever's baby
food, more new foods introduced; Nickel catalyst production 1966 begins; Indian
shareholding increases to 15%. Statutory price control on Vanaspati; Taj Mahal tea
launched. 1967 Hindustan Unilever Research Centre, opens in Mumbai. Mr. V. G.
Rajadhyaksha takes over as Chairman from Mr. Prakash Tandon; 1968 Fine Chemicals
Unit commissioned at Andheri; informal price control on soap begins.
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1969 1971
Rin bar launched; Fine Chemicals Unit starts production; Bru coffee launched Mr. V.
G. Rajadhyaksha presents plan for diversification into chemicals to Unilever
Special Committee - plan approved; Clinic shampoo launched. Pilot plant for
industrial chemicals at Taloja; informal price control on soaps withdrawn; Liril
marketed.
1973 Mr. T. Thomas takes over as Chairman from Mr. V. G. Rajadhyaksha. 1974
Ten-year modernisation plan for soaps and detergent plants; Jammu project 1975 work
begins; statutory price control on Vanaspati and baby foods withdrawn; Close-up
toothpaste launched. 1976 1977 Construction work of Haldia chemicals complex
begins; Taloja chemicals unit begins functioning. Jammu synthetic Detergents plant
inaugurated; Indian shareholding increases to 18.57%.
1978 Indian shareholding increases to 34%; Fair & Lovely skin cream launched. 1979
Sodium Tripolyphospate plant at Haldia commissioned. 1980 Dr. A. S. Ganguly takes
over as Chairman from Mr. T. Thomas; Unilever shareholding in the company comes
down to 51%.
1982 Government allows 51% Unilever shareholding. 1984 Foods, Animal Feeds
businesses transferred to Lipton. Agri-products unit at Hyderabad starts
functioning - first range of hybrid 1986 seeds comes out; Khamgaon Soaps unit and
Yavatmal Personal Products unit start production. 1988 Launch of Lipton Taaza tea.
1990 Mr. S. M. Datta takes over as Chairman from Dr. A. S. Ganguly. 1991 Surf Ultra
detergent launched. 1992 HUL recognised by Government of India as Star Trading
House in Exports. HUL's largest competitor, Tata Oil Mills Company (TOMCO), merges
with the company with effect from April 1, 1993, the biggest such in Indian 1993
industry till that time. Merger ultimately accomplished in December 1994; Launch of
Vim bar; Kissan acquired from the UB Group. HUL forms Unilever Nepal Limited, HUL
and US-based Kimberley-Clark 1994 Corporation form 50:50 joint venture - Kimberley-
Clark Lever Ltd. - to market Huggies diapers and Kotex feminine care products.
Factory set up at
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Pune in 1995; HUL acquires Kwality and Milkfood 100% brandnames and distribution
assets. HUL introduces Wall's. HUL and Indian cosmetics major, Lakme Ltd., form
50:50 joint venture – 1995 Lakme Lever Ltd.; HUL enters branded staples business
with salt; HUL recognised as Super Star Trading House. Mr. K. B. Dadiseth takes
over as Chairman from Mr. S. M. Datta; Merger of 1996 Group company, Brooke Bond
Lipton India Limited, with HUL, with effect from January 1; HUL introduces branded
atta; Surf Excel launched. 1997 Unilever sets up International Research Laboratory
in Bangalore; new Regional Innovation Centres also come up.
Group company, Pond's India Ltd., merges with HUL with effect from 1998 January 1,
1998. HUL acquires Lakme brand, factories and Lakme Ltd.'s 50% equity in Lakme
Lever Ltd. Mr. M. S. Banga takes over as Chairman from Mr. K. B. Dadiseth, who
joins the Unilever Board; HUL acquires 74% stake in Modern Food Industries 2000
Ltd., the first public sector company to be disinvested by the Government of India.
2002 HUL enters Ayurvedic health & beauty centre category with the Ayush range and
Ayush Therapy Centres.
2003 Launch of Hindustan Lever Network; acquisition of the Amalgam Group 2005
Launch of "Pureit" water purifiers
HLL's brands, spread across 20 distinct consumer categories, touch the lives of two
out of three Indians. They endow the company with a scale of combined volumes of
about 4 million tonnes and sales of Rs.10,000 crores. The leading business
magazine, Forbes Global, has rated Hindustan Lever as the best consumer household
products company. Far Eastern Economic Review has rated HLL as India‟s most
respected company. Asiamoney has rated HLL as one of India‟s best managed
companies. Leading national publications, like The Economic Times, Business World,
and Business Today have also rated HLL as one of India‟s most respected companies
and the number one in Market Value Added and EVA. The vision that inspires HLL's
32,400 employees (40,000 including Group Companies), including about 1,425
managers, is to “meet everyday needs of people everywhere - to anticipate the
aspirations of our consumers and customers and to respond creatively and
competitively with branded products and services which raise the quality of life.”
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This objective is achieved through the brands that the company markets. It is an
ethos HLL shares with its parent company, Unilever, which holds 51.55% of the
equity. A Fortune 500 transnational, Unilever sells Foods and Home and Personal
Care brands through 300 subsidiary companies in about 100 countries worldwide with
products on sale in a further 50. Business nature HLL is India's largest marketer
of Soaps, Detergents and Home Care products. It has the country‟s largest Personal
Products business, leading in Shampoos, Skin Care Products, Colour Cosmetics, and
Deodorants. HLL is also the market leader in Tea, Processed Coffee, branded Wheat
Flour, Tomato Products, Ice cream, Soups, Jams and Squashes. HLL is also one of the
country's biggest exporters and has been recognised as a Golden Super Star Trading
House by the Government of India; it is a net foreign exchange earner. HLL is also
driving exports in chosen areas where India has a competitive advantage – Marine
Products, Basmati Rice, Castor Oil and its Derivatives. It is India's largest
exporter of Marine Products, and one of the largest global players in castor.
Market leading brands HLL‟s brands have become household names. The company‟s
strategy is to concentrate its resources on 30 national power brands, and 10 other
brands which are strong in certain regions. The top five brands together account
for sales of over Rs.3000 crores. Each of these mega brands has a potential scale
of Rs.1000 crores in the foreseeable future. Some of the big brands in Soaps and
Detergents are Lifebuoy, Lux, Liril, Hamam, Breeze, Dove, (all soaps), Surf Excel,
Surf, Rin, Wheel (the number one detergent brand in India, and HLL's largest), 501,
Sunlight (all detergents). HLL also markets the Vim and Domex range of Home Care
Products. In the Personal Products business, HLL's Hair Care franchises are Clinic,
Sunsilk and Lux shampoos; the company markets Nihar oil. In Oral Care, the
portfolio comprises Close-up and Pepsodent toothpastes and toothbrushes. In Skin
Care, HLL markets Fair & Lovely Skin Cream and Lotion, the largest selling Skin
Care Product in India; a brand developed in India, it is now exported to over 30
countries. It has been extended as an Ayurvedic cream, an under-eye cream, a soap
and a talc, in line with the strategy to take brands across relevant categories.
The other major Skin Care franchises are Pond‟s, Vaseline, Lakme and Pears. In
Colour Cosmetics, HLL markets the Lakme and Elle-18 ranges. In Deodorants, the key
brands are Rexona, Axe, Denim and Pond's, while the Talc brands are Pond's, Liril,
Fair & Lovely, Vaseline and Lifebuoy. Axe and Denim are HLL‟s franchises for Men‟s
toiletries. HLL has recently launched Lever Ayush Ayurvedic Health & Personal Care
Products. HLL markets products, which consistently offer value in terms of price
and quality and are safe for their intended use. Its operations are run in an
environmentally sound and sustainable manner, ensuring that the processes and
products conform to standards set by the authorities
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S.W.O.T ANALYSIS
SWOT Analysis is a strategic planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or in a business
venture. It involves specifying the objective of the business venture or project
and identifying the internal and external factors that are favorable and
unfavorable to achieving that objective. The technique is credited to Albert
Humphrey, who led a research project at Stanford University in the 1960s and 1970s
using data from Fortune 500 companies.
Strengths
Weaknesses
Centralized Control – Low Flexibility High Consumer churn rates Threats Increased
Competition Market saturation in Europe Emergencies of Low cost Brands
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DISTRIBUTION NETWORK
HUL's products, manufactured across the country, are distributed through a network
of about 7,000 redistribution stockists covering about one million retail outlets.
The distribution network directly covers the entire urban population. The general
trade comprises grocery stores, chemists, wholesale, kiosks and general stores.
Hindustan Unilever services each with a tailor-made mix of services. The emphasis
is equally on using stores for direct contact with consumers, as much as is
possible through in-store facilitators.
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The distribution network in general trade is as follows:-
FACTORY
REDISTRIBUTION STOCKIST
CONSUMER
The products that are manufactured are first brought to the JIT (Just In Time)
Depot from the factory. Then these products are delivered to the Redistribution
Stockiest according to the order placed by them, this is done through Permanent
Despatch Plan.Then this stock is send to either retailers or wholesalers, according
to the channel followed by them. From there it reaches to the consumers.
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At the supermarkets
Self-service stores and supermarkets are fast emerging in metros and large towns.
To service modern retailing outlets in the metros, HUL has set up a fullscale sales
organisation, exclusively for this channel. The business system delivers excellent
customer service, while driving growth for the company and the store. At the same
time, innovative marketing initiatives are taken to provide consumers with
experience of our brands at the store itself, through product tests and in-store
sampling. This is termed as Modern Trade. It has got different distribution network
and work differently. It is fast gaining pace as more and more people are turning
to malls for shopping. Today shoppers don‟t just want to buy their daily groceries
but they also want a shopping experience. They want to spend time in air
conditioned store, no more they are ready to sweat for spending money. These big
box retailers provide them a platform where they can roam around, pick, compare and
choose their products. These stores provide them a whole new experience of shopping
without shedding any drop of sweat.
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DISTIBUTION NETWORK
FACTORY
CONSUMER
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PRODUCT PROFILE
Hindustan Unilever is biggest company in the FMCG (Fast Moving Consumer Goods)
sector. Its products are divided into various categories. These are given as
follows: Home and Personal Care: under this it is further divided into two parts:
1. Dets : all the detergents and dishwashers are covered in this. For example, Vim,
Rin, Surf Exel.
2. Personal Products : this comprises of all the products related to personal care.
these are as follows:
- Oral: toothpaste and toothbrush ( Pepsodent, Close Up) - Skin: soaps, talcum
powder, fairness cream, body lotion, winter cream ( Pears, Vaseline, Fair & Lovely,
Ponds‟) - Hair: Shampoos ( Sunsilk, Clinic All Clear)
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INTRODUCTION
“Marketing is a social and managerial process by which individuals and groups
obtain what they need and want, through creating, offering and exchanging products
of value with others”. - Philip Kotler.
Marketing includes all those activities having to do with effecting changes in the
ownership and possession of goods and services. It is that part of economics which
deals with the creation of time, place and possession utilities and that phase of
business activity through which human wants are satisfied, by the exchange of goods
and services for some valuable consideration. - American Marketing Association.
Marketing is the process of discovering and translating consumer wants into product
and service specifications and then in turn helping to make it possible for more
and more of consumers to enjoy more and more of these products and services.
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Marketing consists of analyzing marketing opportunities, researching and selecting
target markets, designing marketing strategies, planning marketing programs and
organizing, implementing and controlling marketing effort. Companies have to
identify long and short term marketing opportunities and research the selected
market by measuring and forecasting attractiveness of the given market. Having
selected the market, the companies need to develop a differentiating and
positioning strategy for the target market. The marketing strategy must be
transformed into marketing programs by deciding on marketing expenditures and the
marketing mix. The final step is organizing the marketing resources and
implementing and controlling the marketing plan.
MARKETING MIX
Marketing mix is the set of marketing tools that a firm uses to pursue its
marketing objectives in the target market. McCarthy has popularized a four factor
classification of marketing tools known as the 4P‟s of the marketing mix. They are:
Product Price Place Promotion
Product :
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Product stands for the firm‟s tangible offer to the market, including the product
quality, design, features, branding and packing. It deals with new product
development, product life cycle, product mix, product lines, branding and
associated services to a product. From the customer‟s point of view, it helps in
satisfying the customer‟s needs and wants.
Price :
Price is the monetary value of the product. Price deals with selecting the pricing
objectives, setting the price, discounts, allowances, payment policies and credit
terms. It is very important to the customers as it decides the cost the customer
has to pay to gain the product value.
Place :
This marketing tool stands for the various activities the company undertakes to
make the product accessible and available to the customer. It involves market size,
channel selection and management, storage and physical distribution with the
ultimate purpose of efficiently supplying the company‟s offer to the target market.
To the customer, this marketing tool refers to convenience.
Promotion:
Promotion stands for various activities the company undertakes to communicate and
promote its products to the target market. It involves communication
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programs i.e. direct marketing, advertising, sales promotions, public relations and
motivation of sales force. To the customer this tool provides knowledge and
information.
Advertising:
It is any paid form of non-personal presentation and promotion of ideas, goods or
services by an identified sponsor.
Direct Marketing:
It refers to the use of mail, telephone and other non-personal contact tools to
communicate with or solicit a response from specific customers and prospects.
Personal Selling:
Face to face interaction with one or more prospective purchasers for the purpose of
making a sale refers to personal selling.
Sales Promotions:
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The short-term incentive to encourage trial or purchase of a product or service
refers to sales promotion. Whereas advertising offers a reason to buy; sales
promotion offers an incentive to buy.
Sales Promotion
Sales promotion refers to the short-term incentives to encourage sales of a product
or service. It consists of a diverse collection of incentive tools, mostly short-
term, designed to stimulate quicker and greater purchase of products or services by
consumers.
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To use sales promotion, a company must set objectives, select the right tools,
develop the best program and implement it and evaluate the results.
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The main consumer promotion tools are as follows; Samples: They are offers of a
trial amount of a product. It consists of inviting prospective purchasers to try
the product without cost or at a lower cost in the hope that they will buy the
product. Samples may be free or discounted. Coupons: Coupons are certificates
that give buyers a saving when they purchase a specified product. Coupons can be
mailed, placed in advertisements or included with other products. Rebates: Rebate
is also known as cash refund offers. Rebates are offers to refund part of the
purchase price of a product to its customers who send a proof of purchase to the
manufacturer. These are like coupons except that the price reduction occurs after
the purchase and not at the point of sale.
Price Packs: Cents-off deals or price packs offer consumers savings by way of
reducing prices that are marked by the producer directly on the package.
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Premiums: These are the goods offered either free or at a low cost as an
incentive to buy a product. Premiums may be in-pack or on-pack (outside the pack).
Prizes: They are offers of chance to win something such as cash, trips or goods –
by luck or through extra efforts. Contests of talent and sweepstakes or draws the
most popular prize offering promotions. Tie-in Promotions: Tie-in promotions
involve two or more brands or companies that team up on coupons, refunds or
contests to increase their pulling powers.
Cross Promotions: Cross promotions involve using one brand to advertise non-
competing brand.
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patronage of a certain vendor or a group of vendors. They aim at building brand
loyalty.
PoP Promotions: Point of purchase (PoP) includes displays and demonstrations that
take place at the point of purchase or sale.
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Free goods are the extra merchandise offered to middlemen who buy a specific amount
of a product. Companies also offer push money and specialty advertising items to
the middlemen.
Clearly, sales promotions play an important role in the total promotion mix. To use
it well, the marketer must define the sales promotion objectives, select the best
tools, design the sales promotion program, pretest and implement the program and
evaluate its results.
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RESEARCH METHODOLOGY
RESEARCH DESIGN In my project I have used various tools of Exploratory Research.
This research will be done to gain background information of the problem. An
initial research will be conducted to clarify and define the nature of the problem.
The various tools used are experience surveys, in depth interviews, secondary data
analysis. Descriptive research was done where questionnaires were given to the
retailers and the wholesalers to find out the competition in HUL skin category.
QUESTIONNAIRE DESIGN The questionnaire consists of predominantly closed ended and
option based question in order to provide some ease to the respondents. In order to
make the questionnaire more effective following points are covered: • Uniformity in
questions and ease of tabulation and analysis. • Reduce subjectivity • Easier to
receive response • Less time consuming. The questions tried to cover all aspects
required to analyze the skin category of HUL and other competitive brands. The
various variables are analyzed in the questions.
SAMPLING METHODOLOGY
SAMPLE PLAN
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The project was conducted for the geographical region of Bilaspur. The sample
consists of both the retailers and wholesalers of the general trade.
DATA COLLECTION The data collection exercise was carried over a period of 15 days,
in the various markets of the region. Over the period of 15 days the data was
collected and then all the data was very carefully studied and the results were
found out. “Marketing research means the systematic gathering, recording, analyzing
of data about problems relating to the marketing of goods and services” Marketing
research has proved an essential tool to make all the need of marketing management.
Marketing research therefore is the scientific process of gathering and analyzing
of marketing information to meet the needs of marketing management. But gathering
of observation is must be systematic. The systematic conduct of research requires:
Orderliness, in which the measurements are accurate. Impartiality in analysis
and interpretation.
All of research can be categorized into basic and applied. 1. BASIC RESEARCH: -
Basic Research is that intended to expand the body of knowledge for the use of
others. 2. APPLIED RESEARCH: - Applied Research is one, which is carried out to
find the solution for a particular problem or for guiding a specific decision. It
is usually private in nature. My research on Vodafone is carried on for guiding
specific decisions and its results are useful only to Vodafone for taking
particular decision regarding product quality, staff and security. Hence the nature
of my research study is “APPLIED RESEARCH “.
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Research Approach
Data collection methods
a) Secondary Research
External secondary data has been generated to obtain volume of sales regarding
beverage markets, fruit drinks, each of the brands and the positioning of each of
the brands.
b) Survey Research
Data was collected from candidates using questionnaire. The questionnaire was
distributed in colleges and people on the street. I distributed the
questionnaires outside the shops to gather data from people who had come to visit
there. I made an online questionnaire and circulated on the internet and gathered
results from those.
Measurement Instruments:
The measurement instrument in the questionnaire was a five point Likert scale.
Apart from details regarding their choice of drink for refreshment, their frequency
of visits and the channels they choose, their spending patterns will also be
mapped. The data was extracted and put in MS Excel. All the further analysis was
then carried out using SPSS. The measurement was designed to get a fair idea
about the various attributes and conducted factorial analysis of the important
attributes.
Samples
The aim was to collect 100 samples for the analysis. The samples should be such
that they are consumers of fruit drinks. I also tried to get an adequate ratio
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of men and women in the samples. The main demographics targeted were the younger
age group as they are more health conscious and aware of such health drinks. Also I
tried to focus more on the college going crowd and young professionals as they
would be more interested in trying out new products and were more conscious. Buyers
who have been consuming fruit drinks were better able to answer the questions
regarding the influencing factors and the reasons for their consumption and
purchase. The samples collected from internet have also been very valuable in the
research.
Analysis Techniques
The analysis techniques used have been on SPSS and the tests were performed to
ascertain the factors influencing the consumer decision while buying fruit drinks.
Factor analysis was conducted to discern out of the 13 factors mainly which
factors influence the buying habits of the consumers. Ultimately I identified 5
factors which mainly have an influence. I also conducted correlation tests to
find out the various reasons for purchasing any particular brand of fruit drink.
SOURCES OF DATA
Primary Data
Secondary Data
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Limitations:
The main limitation is the sampling conducted. It was done in a random manner and
no particular technique followed. In the first survey a greater number of college
students have been surveyed. The data might not be representative of the entire
population. Various statistical techniques as learned have been implemented and
conclusions as best possible have been drawn making few assumptions as and when
required. Since no data was on interval or ratio scale it was not feasible to
conduct Regression and ANOVA.
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5. There were time constraints.
Specific Findings:
1. The company adopts a variety of promotional methods such as paper insertion,
telemarketing, display stalls, participating in exhibitions, direct mail,
presentations and showrooms. 2. Every player is vying with each other to capture a
larger pie in the markets. 3. Transparency is maintained at the levels of the
organization.
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4. The activities carried out by each and every department of the organization is
systematic.
General Findings:
1. Foreign companies can invest up to 100% in most of the manufacturing industries
in India, including furniture. 2. With the vast array of modular option available
in market, the consumer isn‟t really strapped for choice. 3. In a nutshell, this
means to say that the competition is very intense. 4. Many branded companies
outsource the products because of which the delivery time of the product ordered is
stretched. 5. HUL offers a wide range of products. This gives it an edge over the
others. 6. “Quality never comes cheap”. This is true but at the same time, it is
also true that quality can come at a reasonable price. With regard to the quality,
products of HUL are at par with the other players having brand names and at the
same time the products are reasonable priced. 7. Majority of the marketing
executives are male. 8. The prices of the products are reasonable though they are
competitive. 9. The products are of good quality and are at par with other
competitors having brand names.
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10. Reasonable pricing, customized products, quality and finishing contributes in
differentiating the products of the organization from that of the others.
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Data Analysis
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Data Analysis
Type of Respondent Cumulative Percent 19.2 85.9 100.0
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Deals in HUL Products Frequency Valid Yes Total 19 80 99 Percent 19.2 80.8 100.0
Valid Percent 19.2 80.8 100.0 Cumulative Percent 19.2 100.0
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Personal Care Frequency Valid yes Total 19 80 99 Percent 19.2 80.8 100.0 Valid
Percent 19.2 80.8 100.0 Cumulative Percent 19.2 100.0
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Confectionery Frequency Valid No yes Total 19 14 66 99 Percent 19.2 14.1 66.7 100.0
Valid Percent 19.2 14.1 66.7 100.0 Cumulative Percent 19.2 33.3 100.0
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Dental Care Frequency Valid No yes Total 19 8 72 99 Percent 19.2 8.1 72.7 100.0
Valid Percent 19.2 8.1 72.7 100.0 Cumulative Percent 19.2 27.3 100.0
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Detergent and Soaps Cumulative Percent 19.2 32.3 100.0
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Visits of Agents per week
44
Orders Placed Per Month Frequency Valid 1 2 3 4 5 6 9 Total Missing System Total 1
9 20 24 22 3 1 80 19 99 Percent 1.0 9.1 20.2 24.2 22.2 3.0 1.0 80.8 19.2 100.0
Valid Percent 1.3 11.3 25.0 30.0 27.5 3.8 1.3 100.0 Cumulative Percent 1.3 12.5
37.5 67.5 95.0 98.8 100.0
45
Quantity in Single Purchase ( '000) Frequency Valid 5 6 8 25 30 40 50 Total Missing
System Total 34 14 18 4 8 1 1 80 19 99 Percent 34.3 14.1 18.2 4.0 8.1 1.0 1.0 80.8
19.2 100.0 Valid Percent 42.5 17.5 22.5 5.0 10.0 1.3 1.3 100.0 Cumulative Percent
42.5 60.0 82.5 87.5 97.5 98.8 100.0
46
Most Difficult to Sold Frequency Valid Dental Care Total 19 80 99 Percent 19.2 80.8
100.0 Valid Percent 19.2 80.8 100.0 Cumulative Percent 19.2 100.0
47
Easy to Sold Cumulative Percent 19.2 100.0
48
Incentive Frequency Valid Cash Discounts Free Gifts Trade Discounts Total 19 10 14
56 99 Percent 19.2 10.1 14.1 56.6 100.0 Valid Percent 19.2 10.1 14.1 56.6 100.0
Cumulative Percent 19.2 29.3 43.4 100.0
49
Attraction to Offers Frequenc y Percent Valid No Yes Total 19 13 67 99 19.2 13.1
67.7 100.0 Valid Percent 19.2 13.1 67.7 100.0 Cumulative Percent 19.2 32.3 100.0
50
Customer have knowledge of product Cumulative Percent 19.2 52.5 100.0
51
customer have knowledge of Company Frequency Valid No Yes Total 19 50 30 99 Percent
19.2 50.5 30.3 100.0 Valid Percent 19.2 50.5 30.3 100.0 Cumulative Percent 19.2
69.7 100.0
52
Customers Attracted by Offers Cumulative Percent 19.2 31.3 100.0
53
P&G Cumulative Percent 19.2 69.7 100.0
54
ITC Cumulative Percent 19.2 60.6 100.0
55
Others Cumulative Percent 19.2 100.0
56
Chi Square Analysis
57
Visits of Agents per week * Orders Placed Per Month
Analysis Table Orders Placed Per Month 1 Visits of Agents per week 1 Observed
Expected 1 .1 2 0 1.0 .0% 1 3.8 11.1% 8 4.2 88.9% 9 9.0 100.0% 3 6 2.3 30.0% 14 8.5
70.0% 0 9.3 .0% 20 20.0 100.0%
% within Orders Placed 100.0% Per Month 2 Observed Expected % within Orders Placed
Per Month 3 Observed Expected % within Orders Placed Per Month Total Observed
Expected 0 .4 .0% 0 .5 .0% 1 1.0
58
Analysis Table Orders Placed Per Month 4 Visits of Agents per week 1 Observed
Expected % within Orders Placed Per Month 2 Observed Expected % within Orders
Placed Per Month 3 Observed Expected % within Orders Placed Per Month Total
Observed Expected % within Orders Placed Per Month 1 2.7 4.2% 15 10.2 62.5% 8 11.1
33.3% 24 24.0 100.0% 5 0 2.5 .0% 3 9.4 13.6% 19 10.2 86.4% 22 22.0 100.0% 6 1 .3
33.3% 0 1.3 .0% 2 1.4 66.7% 3 3.0 100.0%
59
Analysis Table Orders Placed Per Month 9 Visits of Agents per week 1 Observed
Expected % within Orders Placed Per Month 2 Observed Expected % within Orders
Placed Per Month 3 Observed Expected % within Orders Placed Per Month Total
Observed Expected % within Orders Placed Per Month 0 .1 .0% 1 .4 100.0% 0 .5 .0% 1
1.0 100.0% Total 9 9.0 11.3% 34 34.0 42.5% 37 37.0 46.3% 80 80.0 100.0%
60
Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear
Association N of Valid Cases 56.420a 64.482 4.999 80 df 12 12 1 Asymp. Sig.
(2sided) .000 .000 .025
a. 15 cells (71.4%) have expected count less than 5. The minimum expected count
is .11.
61
Visits of Agents per week * Quantity in Single Purchase ( '000)
Analysis Table Quantity in Single Purchase ( '000) 5 Visits of Agents per week 1
Observed Expected % within Quantity in Single Purchase ( '000) 2 Observed Expected
% within Quantity in Single Purchase ( '000) 3 Observed Expected % within Quantity
in Single Purchase ( '000) Total Observed Expected % within Quantity in Single
Purchase ( '000) 6 3.8 17.6% 23 14.5 67.6% 5 15.7 14.7% 34 34.0 6 0 1.6 .0% 0 6.0 .
0% 14 6.5 8 0 2.0 .0% 0 7.6 .0% 18 8.3
62
Analysis Table Quantity in Single Purchase ( '000) 25 Visits of Agents per week 1
Observed Expected % within Quantity in Single Purchase ( '000) 2 Observed Expected
% within Quantity in Single Purchase ( '000) 3 Observed Expected % within Quantity
in Single Purchase ( '000) Total Observed Expected % within Quantity in Single
Purchase ( '000) 1 .5 25.0% 3 1.7 75.0% 0 1.9 .0% 4 4.0 100.0% 30 1 .9 12.5% 7 3.4
87.5% 0 3.7 .0% 8 8.0 100.0% 40 0 .1 .0% 1 .4 100.0% 0 .5 .0% 1 1.0 100.0%
63
Analysis Table Quantity in Single Purchase ( '000) 50 Visits of Agents per week 1
Observed Expected % within Quantity in Single Purchase ( '000) 2 Observed Expected
% within Quantity in Single Purchase ( '000) 3 Observed Expected % within Quantity
in Single Purchase ( '000) Total Observed Expected % within Quantity in Single
Purchase ( '000) 1 .1 100.0% 0 .4 .0% 0 .5 .0% 1 1.0 100.0% Total 9 9.0 11.3% 34
34.0 42.5% 37 37.0 46.3% 80 80.0 100.0%
64
Chi-Square Tests Asymp. Sig. (2sided) .000 .000 .003
df 12 12 1
a. 15 cells (71.4%) have expected count less than 5. The minimum expected count
is .11.
65
Incentive * Orders Placed Per Month
Analysis Table Orders Placed Per Month 1 Incentive Cash Discounts Observed Expected
% within Orders Placed Per Month Free Gifts Observed Expected % within Orders
Placed Per Month Trade Discounts Observed Expected % within Orders Placed Per Month
Total Observed Expected % within Orders Placed Per Month 0 .1 .0% 0 .2 .0% 1 .7
100.0% 1 1.0 100.0% 2 0 1.1 .0% 8 1.6 88.9% 1 6.3 11.1% 9 9.0 100.0% 3 8 2.5 40.0%
0 3.5 .0% 12 14.0 60.0% 20 20.0 100.0%
66
Analysis Table Orders Placed Per Month 4 Incentive Cash Discounts Observed Expected
% within Orders Placed Per Month Free Gifts Observed Expected % within Orders
Placed Per Month Trade Discounts Observed Expected % within Orders Placed Per Month
Total Observed Expected % within Orders Placed Per Month 2 3.0 8.3% 0 4.2 .0% 22
16.8 91.7% 24 24.0 100.0% 5 0 2.8 .0% 4 3.8 18.2% 18 15.4 81.8% 22 22.0 100.0% 6
0 .4 .0% 2 .5 66.7% 1 2.1 33.3% 3 3.0 100.0%
67
Analysis Table Orders Placed Per Month 9 Incentive Cash Discounts Observed Expected
% within Orders Placed Per Month Free Gifts Observed Expected % within Orders
Placed Per Month Trade Discounts Observed Expected % within Orders Placed Per Month
Total Observed Expected % within Orders Placed Per Month 0 .1 .0% 0 .2 .0% 1 .7
100.0% 1 1.0 100.0% Total 10 10.0 12.5% 14 14.0 17.5% 56 56.0 70.0% 80 80.0 100.0%
68
Chi-Square Tests
df 12 12
a. 17 cells (81.0%) have expected count less than 5. The minimum expected count
is .13.
69
Incentive * Quantity in Single Purchase ( '000)
70
Analysis Table Quantity in Single Purchase ( '000) 25 Incentive Cash Discounts
Observed Expected % within Quantity in Single Purchase ( '000) Free Gifts Observed
Expected % within Quantity in Single Purchase ( '000) Trade Discounts Observed
Expected % within Quantity in Single Purchase ( '000) Total Observed Expected %
within Quantity in Single Purchase ( '000) 0 .5 .0% 0 .7 .0% 4 2.8 100.0% 4 4.0
100.0% 30 0 1.0 .0% 0 1.4 .0% 8 5.6 100.0% 8 8.0 100.0% 40 0 .1 .0% 0 .2 .0% 1 .7
100.0% 1 1.0 100.0%
71
Analysis Table Quantity in Single Purchase ( '000) 50 Incentive Cash Discounts
Observed Expected % within Quantity in Single Purchase ( '000) Free Gifts Observed
Expected % within Quantity in Single Purchase ( '000) Trade Discounts Observed
Expected % within Quantity in Single Purchase ( '000) Total Observed Expected %
within Quantity in Single Purchase ( '000) 0 .1 .0% 0 .2 .0% 1 .7 100.0% 1 1.0
100.0% Total 10 10.0 12.5% 14 14.0 17.5% 56 56.0 70.0% 80 80.0 100.0%
72
Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio N of Valid Cases 93.445a
89.145 80 df 12 12 Asymp. Sig. (2-sided) .000 .000
a. 16 cells (76.2%) have expected count less than 5. The minimum expected count
is .13.
73
RECOMMENDATIONS AND SUGGESTIONS
This report lists the various recommendations and suggestions with respect to the
findings and in congruence with the objectives of the study.
2. Quality clubbed with reasonable pricing and quick delivery made the product of
the company stand apart. The marketing campaign should focus on this aspect and
made according to its line.
3. The strength of the company is its customized products. This very fact must be
highlighted in the marketing campaign.
4. As the products are reasonably priced, the ambit of the target consumers should
be stretched so that middle class consumers also fit into it.
74
5. The company must stick to a norm while giving discounts on repeat purchase. This
will certainly help in sales promotion in order to create repeat purchase.
6. In order to have a rapid market access, the company can include dealers, if not
retailers at the moment.
7. The company can introduce some reward schemes so that a person is benefited
after the fulfillment and over achievement of the target. This is predominantly
done to motivate the sales force and enhance their performance.
8. Other than emphasis on design, craftsmanship and product quality, the company‟s
unique strength also lies in its capability as a fully – integrated furniture
manufacturer. This fact should be highlighted during the advertisement campaigns.
75
Suggestions:
1. Everyone is aware of the growth in wealth and change in lifestyle among
Bangalore‟s novae riche. So the marketing campaign should be designed to woo the
customers.
2. The company should explore all possible ways in order to aggressively sell its
products.
3. In today‟s crowed market place in order to increase the size of the pie, the
Company can adopt innovative promotional strategies. It will help in creating and
reinforcing the Company‟s identity in the minds of the consumer.
4. In order to be extra ordinary, the Company has to walk the extra mile. A method
named „Experimental Marketing‟ can be adopted by the Company wherein the
prospective consumers can be invited to visit the showroom and touch and feel the
products.
BIBLIOGRAPHY
Name Of Book year Name Of Author Edition &
Paramhans Foundation
Fourth
C.R.Kothari
Second
Philip Kotler
Twelth
D.N. Elhance
Present
77
REFRENCES
1) 2) 3)
QUESTIONNAIRES
1. Do You Deal in FMCG Products of HUL. o Yes 2. Which Products of HUL Do You Deal
In. o o o o Staple Confectionery Packed Food Biscuits
o No
3. How frequent the agents of HUL Visit You o More than once a o Once a fortnight
week o Once a month o Once a week 4. How many orders you place a
month ? ...........................................................................
... 5. How much quantity is there in single
purchase? .........................................................................
........... 6. Which Product you find most difficult to
sell? .............................................................................
. 7. Which Product you find most easily
sold? .............................................................................
.
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8. How much margin do you get on the HUL Products? Snacks Staple
Confectionery Packed Food
Biscuits .......................................... ...............................
........... .......................................... ............................
.............. ..........................................
9. Is there additional incentive for promotion of HUL product? If Yes Specify the
Type of
Incentive .........................................................................
................. 10.What is the Selling Technique adopted by the
HUL? ..............................................................................
.......... 11.What type of promotional offers you get from
HUL? ..............................................................................
........... 12.Do you get attracted by such
offers? ...........................................................................
............... 13.What type of promotional offers is there for the final
customers? ........................................................................
.................. 14.Dose the customer have knowledge of the
product? ..........................................................................
.................. 15.Dose the customer have knowledge of the Company? 16.Are the
customers attracted by the adds. o Yes
o No
17.Which other FMCG Company’s Product You Deal in? HUL Any
Other ................... P &G None
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18.Which Company’s Products are demanded the most by the
customers? ........................................................................
................. 19.What is the difference between that company and HUL promotion
techniques. .......................................................................
......................................................... .........................
.........................................
20.Are you satisfied with the approach of the HUL if Not Give your
Suggestions .......................................................................
.................................................... ..............................
...................................................................................
.......... ........................................................................
................................................... ...............................
...................................................................................
......... .........................................................................
.................................................. ................................
...........................................................................
80