Chetana’s Institute of Management & Research

Bandra (East), Mumbai

A study of factors affecting consumer

purchase decision of personal care
products Company- Hindustan Unilever

Industry Oriented Project

Submitted in fulfillment of the requirements for

Post Graduate Diploma in Management

Academic Year: 2020-2021

Submitted By
Prashant Mishra
Roll No:36
Batch:2019-2021
 Declaration

I hereby declare that this project report titled “A study of factors affecting consumer purchase decision of
factors affecting consumer purchase decision of personal care products Company – Hindustan Unilever”
submitted in partial fulfilment of the requirement of Post Graduate Diploma in Management to Chetana’s
Institute of Management and Research, is my original work and not submitted for award of any degree or
diploma fellowship or for similar title or prize. References of work and related sources of information
have been duly acknowledged in the report.

The project has been carried out under the guidance of Dr. Rajiv Ghatne
I further declare that I have no objection and grant the rights to Chetana’s Institute of Management and
Research to publish any chapter/project or use it for future reference if they deem fit.

Place : Mumbai

Date : 27th April,2021

Name : Prashant Mishra

Division : M2

Roll No. : 36

Digital Signature :
 Certificate
This is to certify that the project titled “A study of factors affecting consumer purchase decision of
factors affecting consumer purchase decision of personal care products Company – Hindustan Unilever”
submitted by Prashant Mishra to Chetana’s Institute of Management & Research in partial fulfillment of
the requirement of Master of Management Studies, has been done under the guidance of the undersigned
during the period December 2020 to April 2021.

Date: 27th April,2021

Place: Mumbai

Dr. Madhumita Patil Project Guide

I/C Director Dr. Rajiv Ghatne

CIMR
 Table Of Content
Executive summary

A. General Management:

Introduction to the Industry:

 Facts about the sector

 Challenges, Opportunities, Growth Drivers

 Emerging trends

 Government Initiatives

 Road map for future

About the Company:

 History
 Performance snapshot
 SWOT Analysis

B. Social Relevance:

 Corporate Governance

 Code of conduct
 Specific CSR initiatives

C. Functional Perspective:

 Objectives of the Project

 Research Methodology

 Secondary research

 Conclusions & Recommendations.

D. Annexures

Bibliography

Questionnaire

Turnitin report
 1) Introduction

1.1) Introduction to Sector

The Fast-moving shopper merchandise (FMCG) area is the fourth biggest

area of the Indian economy. FMCG items that overwhelm the market today are
cleansers, toiletries, tooth cleaning items, beauty care products, and so forth
The FMCG area in India likewise incorporates drugs, buyer gadgets, soda pops
bundled food items and chocolates. Since the area includes an assorted scope
of items, various organizations overwhelm the market in different sub-areas.
People are easily attracted towards Ayurveda things, which has major
improvement, Patanjali Ayurveda,US$ 1.57 billion in FY17.The organization
plans to grow all around the world in the following 5 to 10 years.

Developing interest

Rising livelihoods and developing youth populace have been key

development drivers of the area. Brand awareness has additionally supported
demand India's commitment to worldwide utilization is required to
dramatically increase to 5.8 percent by 2020. Level II/III urban communities
are seeing quicker development in present day exchange
Appealing Opportunities

Low infiltration levels in rustic market offers space for development .

Discretionary cashflow in rustic India has expanded because of the immediate
money move plot .

Fares is another developing fragment . Web based business organizations

like Amazon are fortifying their business in FMCG area, by situating their
foundation wash room as cutting edge offering to drive day by day items deals.

Strategy Support

Venture endorsement of up to 100 percent unfamiliar value in single brand

retail and 51 percent in multi-brand retail . Activities like Food Security Bill
and direct money move appropriations reach around 40% of families in India .
The base capitalisation for unfamiliar FMCG organizations to put resources
into India is US$100 million

Higher Investments

Numerous players are venturing into new topographies and classifications

Different Companies are planning to invest in different region of India.

Specially they are targeting tier -2 ,3 cities and also focusing in rural area. For
Brand awareness companies are spending good amount which leads to higher
investment.
MAIN SEGMENTS

Food and Drinks

It represents 19% of the area. This fragment incorporates wellbeing

refreshments, staples/oats, bread shop items, snacks, chocolates, frozen yogurt,
tea/espresso/sodas, prepared leafy foods, dairy items, and marked flour

Medical care Family

It represents 31% of the sector.This portion incorporates OTC items and

ethicals.

Individual Consideration

It represents 50% of the sector.This portion incorporates oral consideration,

hair care, healthy skin, beautifiers/antiperspirants, fragrances, ladylike
cleanliness and paper items, Texture wash, family cleaners
 Revenue
Income of FMCG region are surveyed to create from US$ 49 billion of each
year by 2020. The territory is evaluated to have seen pay advancement of
14.8 percent in mid decade, maintained by progress in client assessment and
climb in common interest. The Union Budget exercises are needed to
assemble the optional income in the ownership of the average citizens,
especially in the nation domain, which will be worthwhile for the space.
FMCG region to obtain support for advancement from (IWAI) multi-
particular transportation undertaking of payload town at Varanasi which
will join retailers, appropriation focus chairmen and collaborations expert
communities, adventure worth Rs 1.7 b illion. The FMCG region is
depended upon to enroll total compensation improvement of 11.8 percent in
fourth quarter March 2018 in light of accelerated volume advancement,
GST drove hold reserves and higher impact benefits Indian FMCG region is
expected to report pay advancement of around 11 -12 percent in FY19 from
8% in FY18.

DEMOGRAPHIC SUPPORT
A FMCG industry outline demonstrated that India's segment profile assumes a
significant part in the development of this area.

Metropolitan advancement activities by the public authority, just as the expanding

working class of India, has prompted an expansion in the quantity of appealing business
sectors in the country. Ernst and Young's examination on the urban communities of India
features the rise of 30 'new wave' urban areas like Jaipur and Surat. Utilization in these
urban areas is developing at a quicker rate than that of a large number of India's metros.
India's young populace is likewise portrayed by a serious level of mechanical mindfulness.
Developing entrance of cell phones and better web availability in India has prompted an
expanding E-Commerce area, which has, thus, formalized huge areas of the chaotic retail
area. The E-Commerce section is projected to contribute 11% of generally speaking Indian
FMCG organizations' deals in 2030. The online FMCG market is projected to reach $ 45
bn in 2020. This has been a significant impetus in the advancement of the FMCG area in
rustic India.
 Urban Sector
Representing an income portion of around 45 for each cent rural fragment is the
biggest supporter of the general income produced by the FMCG area in India.
Urban section is developing at a quick speed and represented an income
portion of 55% in the general incomes recorded by FMCG area in India. In the
most recent couple of years, the FMCG market has developed at a quicker speed in
rustic India contrasted and metropolitan India. In 2018-19, incomes from the
country section are relied upon to grow 15-16 percent outperforming FMCG items
represent 50% of all out provincial spending. Demand for quality labor and
products has been going up in rustic spaces of India, on the rear of improved
circulation channels of assembling and FMCG organizations. FMCG metropolitan
fragment is required to have a consistent income development at 8% in FY19.
Rural Sector
In FY18, common India addressed ½ times of the hard and fast
FMCG market. This was incepted long back by majority of the
FMCG companies from 2010 itself. Because of which all the
companies came up with various strategies to enter and penetrate the
rural market. Stockiest and super stockiest was appointed by
companies to made their products available in the rural market As
pay levels are rising, there is also a sensible upswing in the bit of non-
food use in provincial India. Earlier in the decade, five percent
growth was observed and later by the decade end companies were
able to see around twenty percent of growth.
Marketing Strategy

Promotions and offers

FMCG organizations are attempting to impact customers with different

consumers offer and discounts. HUL started with 3+1 offer on soaps and
various products. BOGO was also another way to launch their new products in
the market. Because of this, increases in sales was observed. And eventually
depending on the different seasons, promotions and offer were made available
to end customer

Online buying behaviour

Due to busy schedule and pandemic situation, companies made sure

their products are also available online through different medium and also on
their website. This was done to make customer aware about ongoing offers and
scheme of the products.

Remembering the changing preferences of the Indian buyer, companies make

different launch depending on different geographical area and preferences.
Personalisation ad through internet is possible and many companies are
applying such strategies to increase their scale and also enhance the customer’s
experience.Digital marketing is the new wat to enhance the business and
penetrate the market
 Expansion
I
FMCG organisation keeps on expanding, they believe on acquisition of local
companies .This eventually help the companies to capture the different market
with different products. This creates an image in the mind of customer about
the diversification of the particular company and also a sense of belonging.
For example ,ITC acquitted Savlon to enter into disinfectant liquid market.

Customization

Flanking strategy is a way a company placed their products in such a way that
they are able to target each and every product of opposition. This is very
Simple and easy way to customize the companies presence in the market

Green Activities to bring down cost

FMCG organizations have planned to put resources into energy plants to profit
the end customer and reduce the cost in the long run. Unilever satisfies of it’s
force prerequisite for its plant mostly from sunlight energy. The organization
has had the option to diminish the carbon impression of its assembling plants
by thirteen percent
Joint Endeavor

Eveready Enterprises India has entered into a JV with Wings Gathering, an

enormous aggregate and one of the esteemed FMCG organizations in called as,
Widespread Prosperity. Through this JV with All inclusive Prosperity,
Eveready has arranged showcasing and conveyance of an enormous bushel of
FMCG items in India

Analytics
Hindustan Unilever Ltd (HUL) carried out a groundbreaking system
called Associated 4 Development (C4G) to help drive business by speed up to
advertise, quicker dynamic, confined and swifter innovation. Patanjali utilizes
Prophet and SAP for Big business Asset Arranging (ERP), they will
additionally normalize the usuage SAP. It intends to utilize AI for quality
control and item upgrade. They are likewise in converses with Net Application
for enormous information arrangement.

Product/Class Extension

Switzerland- based FMCG goliath, Settle, has ventured into India's pet
consideration section by presenting a scope of premium canine food, called
'Purina Supercoat', under , Settle Purina. According to the organization, there
are approximately nineteen million pets, so the pet food industry has a great
deal of potential and the business is assessed by mid decade.
 Introduction to company

History
In the late spring of last decade 1800, near Kolkata harbor saw containers brimming
with Sunlight cleanser bars, designed "Made in England by Lever Brothers" this
started a period of showcasing marked Fast Moving Consumer Goods (FMCG).

Later we saw Lifebuoy and other renowned brands like Pears, Lux and Vim. Vanaspati
was dispatched in early centuries and the Dalda brand went to the market.

Unilever set up its first Indian auxiliary, Hindustan Vanaspati Manufacturing

Company, owned by Lever Brothers India Limit. These three organizations converged
to shape HUL, it offered 10% of its value to the Indian public, being first of the
unfamiliar auxiliaries to do as such. Unilever presently holds more than half value of
in the organization. The remainder of the shareholding is dispersed among around three
lakh singular investors and monetary foundations.
The recent Brooke Bond's quality in India traces all the way back . The organization
had dispatched Red Label tea in the country. Brooke Bond and Co. India Limited was
framed. Brooke Bond joined the Unilever overlapped through a worldwide
procurement. The recent Lipton's connections with India were produced and Unilever
procured Lipton and Lipton Tea Limited was consolidated.

Lake's Limited were available in India since lndependence It joined the Unilever
overlap through a global procurement of 2 Pond's USA

Since the early years, it has vivaciously reacted to the upgrade of monetary
development. The development interaction has been joined by prudent broadening,
consistently in accordance with Indian feelings and yearnings.

The progression of the Indian economy, unmistakably denoted an emphasis in HUL's

and the Group's development bend. Evacuation of the administrative structure
permitted the organization to investigate each and every item and opportunity section
and distribution of it.

All the while, liberation allowed coalitions, acquisitions and consolidations. In quite
possibly the most noticeable and discussed occasions of India's corporate history, the
recent Tata Oil Mills Company converged with HUL, successful . In new century , in a
notable advance, the public authority chose to grant 3/4th value in Modern Foods to
HUL, accordingly starting the division of government value in open area endeavors to
private area accomplices. HUL's entrance into Bread is an essential expansion of the
organization's wheat business. It obtained the public authority's excess stake in Modern
Foods.

HUL dispatched a large number of new business drives in the early century.
Undertaking Shakti was begun.. It is a novel mutually advantageous drive that
catalyzes country riches even as it benefits business. At present, there are more than
half a lakh of Shakti business visionaries covering more than thousands of towns
across different states and coming to most families residing in these states.

HUL made its introduction to Ayurvedic production and mainly focus class with the
Ayurvedic products reach and Ayush Therapy Centers. HUN, Direct to home business
was dispatched and this was trailed by the dispatch of 'Pureit' purifier.

The Company name was officially changed to Hindustan Unilever Limited subsequent
to accepting the endorsement of investors during the 74th AGM . Brooke Bond and
Surf Excel penetrated the thosands crore deals mark that very year followed by Wheel
which crossed the another crore deals achievement

On seventeenth October of the year, HUL finished 3/4th century of years of corporate
presence in India. In new decade , head office moved from the milestone Reclamation,
Mumbai to the new part of Mumbai.

The Unilever Sustainable Living Plan was authoritatively dispatched in India at New
Delhi .
HUL: iHindustan iUnilever iLimited

ORGANIZATION iSTRUCTURE
VP

GM

Sr isales imanager

Area isales imanager

Territory isalesimanager

Team iLeader

Sales iexecutive

`
 About Unilever

On quickly, 2.5 billion individuals use Unilever items to look great, feel better and get
more out of life – giving us an interesting chance to fabricate a more promising time
to come.

Making reasonable living ordinary

Extraordinary items from our scope of in excess of 400 brands give us an interesting
spot in the existences of individuals everywhere on the world.

At the point when buyers go after healthfully adjusted food varieties or liberal frozen
yogurts, moderate cleansers that battle illness, sumptuous shampoos or ordinary
family care items, there's a decent possibility the brand they pick is one of our own.
Seven out of each ten families all throughout the planet contain at any rate one
Unilever item, and our scope of world-driving, easily recognized name brands
incorporates Lipton, Knorr, Dove, Ax, Hellmann's and Omo. Believed neighborhood
brands intended to meet the particular necessities of buyers in their home market
incorporate Pureit and Suave.

Whatever the brand, any place it is purchased, we're attempting to guarantee that it has
an influence in satisfying our motivation as a business – making feasible living typic

An economical marketable strategy

We need our business to develop yet we perceive that development to the detriment of
individuals or the climate is both inadmissible and monetarily unreasonable.
Reasonable development is the lone adequate model for our business.

Our Unilever Sustainable Living Plan (USLP) is integral to our plan of action. It sets
out how we'll decouple our development from our ecological effect, while
simultaneously expanding our positive social effect.

Our USLP has three major objectives:

• Help in excess of a billion group to improve their wellbeing and prosperity.

• Halve the ecological impression of our items.

• Source 100% of our agrarian crude materials economically and upgrade the
vocations of individuals across our worth chain.
• Working with others to assemble a more promising time to come

We realize that our items should be practical at each stage in their life-cycle, not
simply in our plants. That implies working with others, including our providers,
buyers, governments, NGOs and different organizations to help make the significant
changes that are expected to address the greatest difficulties confronting our reality.

HUL attempts to make a superior future consistently and assists individuals with
feeling better, look great and get more out of existence with brands and
administrations that are useful for them and useful for other people.

With more than 35 brands spreading over 20 unmistakable classifications like

cleansers, cleansers, shampoos, skin health management, toothpastes, antiperspirants,
beautifying agents, tea, espresso, bundled food varieties, frozen yogurt, and water
purifiers, the Company is a piece of the regular day to day existence of millions of
purchasers across India. Its portfolio incorporates driving family brands .
 CSR Activities

In accordance with the necessities of the Companies Act, 2013, HUL

distributed the CSR Annual Report which structures part of this Annual
Report. Here's a short outline of HUL's ventures

Water Conservation Project

India has scarcity of water and water supply is depended on seasonal rain
thusly Unilever Restricted (HUL) has recognized water as a fundamental
space of intercession and set-up Hindustan Unilever Establishment (HUF). It
is a not-income driven Organization that anchors water the board related
neighborhood and practicality exercises of it.It works the 'Water for Public
Great' program, with unequivocal focus on connecting close by neighborhood
to supervise water resources and improving farm based occupations through
gathering of proper utilization of water. Through the Establishment's water
insurance and farm based occupations exercises, aggregately, a capacity to
direct more than 450 billion liters of water has been made, roughly double
digit lakhs enormous heaps of additional cultivating creation has been
delivered and in excess of half lakhs of century individual extensive
stretches of work has been delivered. It has projects across right around major
towns in tier 2 area with good number assistants in India.
Domex Toilet Academy

Domex Toilet Academy (DTA) is an interesting business sector based

enterprising model dispatched by the Company in mid decade . The program
trains business people and artisans to help fabricate and look after latrines;
gives admittance to miniature financing and drives interest for latrines in low-
pay families. Since its initiation, the DTA has prepared in excess of 600
miniature business people. Until now, more than lakhs latrines have been
constructed, profiting more than lakhs of individuals.
 Swachh Aadat Swachh Bharat

The 'Swachh Aadat, Swachh Bharat' (SASB) program is as per the Public
(Clean India Mission)mission to propel incredible prosperity and tidiness
practices.

The program continued propelling extraordinary prosperity and tidiness

practices by zeroing in on the need to accept three clean affinities ('Swachh
Aadat') of washing hands multiple times every day, using a toilet for crap and
getting protected drinking water practices. To spread thoughtfulness
regarding the three clean affinities, 'A Playing Billion' campaign film was
dispatched that included how youngsters leave behind the direct enjoyments
of pre-adulthood in view of reiterated disease and urged people to get the
three essential neatness inclinations.

VSTM

The Organization moreover adds to the Town Social Change Mission (VSTM)
through its Swachhata Educational plan. This instructive program shows
understudies of class 1-5 about the three inclinations for washing hands with
cleaning agent, accepting safe drinking water rehearses and using clean
restrooms. It gives an applied appreciation of orderliness, germs and the ideal
inclinations to be embraced in a fun and interfacing with route across a 21-day
time interval.

The People group Cleanliness Center – Suvidha Center – is another critical

undertaking by the Organization to add to SASB.

The public setting gives drinking water, sanitization, handwashing, shower

workplaces and dress organizations at a sensible cost. The center uses indirect
economy norms to reduce water use. The center was verifiable relationship
with the Metropolitan Organization of More noteworthy Mumbai and Pratha
Samajik Sanstha, a neighborhood affiliation.
Venture Prabhat

' Prabhat' is HUL's USLP-associated program which adds to the progression of close
by networks around key objections including manufacturing zones. Prabhat beat the
longing objective of clearly influencing the presences of lakh of people. From its
dispatch in December 2013 of each eight regions, Task Prabhat is presently live in
excess of 30 regions the country over and clearly benefits over two millions of
people. The key community domains are updating occupations, saving water and
prosperity and neatness care.

Under Prabhat's occupation exercises, in relationship with labour, tara and Deshi
Establishment in excess of people have been adequately attested and more than
twenty thousand have successfully been associated with business openings by the
decade end.
Asha Daan

Asha Daan is place for abandoned and in an unforeseen way abled adolescents
in Mumbai, HIV-positive and out for the count people. From its inception, the
Organization has been really focusing on the upkeep of the premises. At
whatever point, there are around 500 detainees at Asha Daan.

Sanjeevani

The Company runs a free portable clinical benefit camp 'Sanjeevani' for the
nearby local area close to Doom Dooma plant in Assam. There are two
versatile vans devoted to the undertaking. Every vehicle involves one male ,
one female specialist, two medical attendants, a clinical chaperon and a driver.
The vans are furnished with essential packs like demonstrative unit, circulatory
strain estimating unit, drugs and a portable cot.
Ankur

Ankur was set up in 1993 as a middle for a custom curriculum for in an

unexpected way abled kids at Doom Dooma in Assam. Ankur has given
instructive and professional training to 352 in an unexpected way abled
youngsters.

Project Shakti

Undertaking Shakti is the Organization's drive which plans to financially

empower and give work opportunities to women in common India. The Shakti
Business people are given planning for acclimation with the Organization's
things and central statutes of scattering the chiefs. The Organization has a
gathering of Provincial Deals Advertisers (RSPs) who coach and help Shakti
Business visionaries in managing their business.

This recollects help for business essentials and researching similarly as

preparing In milder capacities of trade and correspondence, which enable them
to keep up their business effectively. Undertaking Shakti has right around lakh
of Shakti Business people across majority of states.
 3.1- Objectives of the study
• To identify consumers personal care products purchase patterns
• To identify how frequently a consumer buys such products
• To identify the factors that influence consumers decision
• To identify where most of these products are purchased from
• To identify which shampoo brand of is more preferred
• To identify why Hindustan unilever dominates most of the market

3.2 Research Methodology

• Problem Definition- A study of factors affecting consumer purchase

decision of personal care products
• Research Type- Descriptive
• Analysis method- Quantitative Analysis
• Source of data collection – Primary data
• Research instrument- Structured Questionnaire
• Sampling technique- Convenience sampling
• Sampling size- 100
• Analysis technique- Percentage Analysis
4) Analysis and Findings
From where do you purchase these
products ?
11 5 responses

@ General store
@ Supermarket
Online
@ Wholesaler
@ Agent
@ Own shOp

How often do you purchase personal

care products like shampoo and soap
115 responses

@ Daily
@ Weekly
Monthly
@ Yaarly
@ Quatarly
Which FMCG companies shampoo do
you prefer
115 responses

@ Hindustan Unilever
@ ITC
Proctor & Gambl...
@ Loreal
@ Cavincare
@ Godrej
@ Amway
@ Dabur
@ Dove
@ Ayurveda shamp...

1/2

Which FMCG companies products is

easily available in your area
115 responses

@ Hindustan Unilever
@ ITC
Wipro
@ Godrej
@ Cavincare
 Which factor plays an important role in
your buying decision
115 responses

Brand name

Qua lity 99 (8f

Availability

P rice 46 (40%)

Advertisements

How much do you spend in a month

on soaps and shampoos
115 responses

@ 0-200
200-400
400-600
600 and above
 5.1 Conclusion
The data contains more of millennial, in the age group of 19-24,
followed by age group 25-30 years in Mumbai locality
80% of the sample size purchase their personal care products on a
monthly basis while 9.6% purchase on a weekly basis
36% of the sample size spend about Rs 400-600 on personal care
products , 32% spend Rs 200-400
17.4% of sample size purchase products within the price range of
Rs 200 Quality is the most important attribute, followed by price
and brand name The general trend is that 51.3% of sample size
purchase from supermarket, followed by 21.7% purchasing their
products from general store.
13.9 people purchase their products online
%
10.4 prefer to purchase it from a wholesaler
%
56.5 of sample size prefers Hindustan Unilever
% products
11.3 prefer P&G
%
16.5 prefer L’oreal
%
 5.2 Recommendation

• Today's purchasers are extremely keen, so business ought to be done in a moral

manners. Indeed, even step by step different laws are being authorized for ensuring
purchasers rights. Thus organization ought to be sufficiently straightforward to give
insights concerning different items and extraordinary missions ought to be dispatch to
make shoppers mindful about how to separate misleading items and the organization ought
to legitimately fall back on start activity against the individuals who are associated with it
and severe lawful activities ought to be implemented.

• For the improvement and making country purchaser very much aware, a different
office at organization level ought to be made which will deal with the issues and issues of
rustic customers.

• Company should consider cost separate system for metropolitan and provincial
customer.

• Rural shoppers for the most part really like to purchase those items, where they
can have credit offices. Explicitly in provincial regions individuals are firmly known to
one another. So rustic customers would like to buy the items from where they can benefit
credit office. So organization ought to broaden their help explicitly for provincial retailers
by furnishing Acknowledge office for sensible pace important to build the deals of the
items in the country zones.

• An undertaking should be made to evaluate the notification ampleness in rural

locales. There is no vulnerability that, advertisement is planned for making care yet
thusly it should moreover be ensured that AIDA model is gotten suitably by the country
buyers.e haat is exceptionally essential and nearby stage advanced by the rustic
individuals and for the provincial individuals, and which has as of now acquire a decent
acknowledgment level by country buyers, so organization should thinks to exploit a
similar market by making their quality accessible in to the haat culture and cause the
rustic individuals to feel that the items are made for them as it were.
• As most of the fmcg products have low involvement, companies need to be
active promotion and consumer offer.So that customer repetition can be increased
drastically and gradually converting them into loyal ones.

 Since quality is the most important aspect more emphasis can be given on
premium products
 Companies should focus on penetration of the products
 The data shows an incline towards supermarket so more of sales promotion
activities can be done there
 Youth is the biggest influencer in making purchase decisions so the
marketing and sales promotion techniques should be directed towards .