You are on page 1of 71



SUBMITTED TO PUNJAB TECHNICAL UNIVERSITY, JALANDHAR In the partial Fulfillment for the degree of MASTER OF BUSINESS ADMINISTRATION (M.B.A.) Submitted ByRandeep Baweja University Roll no.-618221298

DEPARTMENT OF BUSINESS MANAGEMENT Guru Nanak Institute of Management & Technology Model Town, Ludhiana 141 002

The big task of undertaking such a work is not singly possible, my project report on advertisement effect on fast moving consumer goods is a result of contribution of lot of persons who provided me with their indispensable guidance, to all those who were connected with the preparations of this project report. Without their overwhelming support and co-operation the presentation of this report would not have been possible. I extend my sincere and whole hearted thanks to

MR. L.DEV RAJAN(Company Head),ING VASAYA BANK and for the encouragement, guidance and co-operating selflessly at all times for many valuable discussion.


PREFACE MBA is stepping stone to management career. In order to achieve practical, positive and concrete results, the classroom learning need to be effectively fed to the realities of the situation existing outside the classroom. This is practical true for manage. To develop healthy managerial and administrative skills in the potential managers it is necessary that theoretical knowledge must be supplemented with exposure of real environment. Actually it is very vital for the management and it is in the practical training that the measuring of management is itself realized. I took summer training in well-managed organization and was fortunate to get a good exposure. In this project report an attempt has been made to cover different aspects of my training.


Certificate I
This is to certify entitled A study of


Submitted in partial fulfillment of the requirement For the degree of Master of Business Administration (M.B.A.) of Punjab Technical University, Jalandhar By RANDEEP BAWEJA University Roll No. 618221298 Has been prepared under my supervision and guidance and no part of it has been submitted for the awarded of the any other degree and that the work has not been published in any journal, magazine or book.

Faculty Signature Mrs. Inderpreet Kaur Sen. Lecturer GNIMT


In the mundane sense, the advertisement effect of fast moving consumer goods is the most pertinent. The ads of like toiletries and the other items of daily use are most projected ads. The major corporate giants like Hindustan lever ltd, dabur India ltd. Hygiene & healthcare ltd coke & Pepsi etc. are the major player in the market. The ads are presented so that with their impact the consumer are inclined to buy the product. Ads by business firms are use to achieve its communication objectives with a target group. The phase impact of ads and ad effectiveness are synonymous. Now what is ad effectiveness? Effectiveness of ad cannot be measured with a mathematical or empirical formula. Ads alone cannot sell the product. There are many other factors- product quality, price, packaging, product characteristics, easy availability etc. which contribute toward the sale of the product. Consumers decision to purchase the product is influenced by its ads. so ads are projected in such a way that it makes the attitude of the people favorable toward the product . So the selection of media, ad script, copy test are done by the producer very carefully and effectively . Protesting ads is done through various ways. Paired comparison Portfolio test Trailer test etc After all such things ads come in it fore, how if effect the decision and how much the decision are effected are judged after that. Tests are made by the ad producer to know its real effects. These tests are:

Penetration test Error-in-recognition measurement Triple association test etc. Other way to judge ad effectiveness is through questionnaire survey. Ad stimuli come in consumer mind and how consumer react to it depends upon consumer black box. consumer decision to purchase is shaped by culture, sub culture , social group , reference group , family , age , life cycle stage , occupation , learning , life style , economic condition etc . These effects are studied concentrating on: Toothpaste Shampoo The study gives the knowledge about the fast moving consumer good industry, major player in Indian market and budget effect on FMCGs.


The FMCG (Fast Moving Consumer Goods) Industry comprises of goods, which are mass use goods directly consumable, packaged and branded having significant demand in low to middle income strata and above all highly price sensitive.

Fast-Moving-Consumer-Goods, commonly referred to as FMCG's, are all those products that are on the shelf one minute and gone the next. They are the types of products which the regular consumer, like you or I, encounter on a daily basis. In the morning you clean your teeth with toothpaste, you wash down you breakfast with orange juice, and you race out the door grabbing your copy of the daily newspaper. . . . You get the idea? There really are an infinite number of FMCG's in today's market place, and if you blink for too long you will miss the launch of another one (or a whole new range). Essentially, they are the types of products found in retail outlets such as New World Supermarkets, the rapidly sprouting Star-Mart convenience stores, and the corner dairy. The FMCG (Fast Moving Consumer Goods) industry comprises of goods, which are mass use goods directly consumable, packaged and branded having significant demand in low to middle income strata and above all highly price sensitive.

The FMCG Industry in India is the third largest Industry after Textiles and Petroleum with a turnover of over Rs. 86,000 cores. Its participant profile is 8

extensive and includes food and related products such as tea, salt, tobacco, oils, fats and processed foods, personal care products such as soaps, detergents, hair oils, and toiletries and dental products. Other goods include batteries, sanitary napkins, shoe polish, insecticides and liquor. The Industry contributes to the exchequer by way of Income Tax and Central Excise to the extent of 9% and 16% respectively of the total collection. It provides large employment both, direct and indirect and in terms of the 1994 data, it provided 6% of the total 9.1 million. It directly provides employment with a multiplier of 5.5. Each manufacturing employee supports 7 people downstream. The Industry has a significant rural bias and accounts for 56% of the total rural demand. Expenditure on consumer durables like washing machines, refrigerators, and color televisions has shown an impressive growth during the 1990's. In 199394 households owned 586 million durable goods, which increased to 705 million by the year 1995-96, Le. a rise of about 20.3 percent in two years. Even allowing for increase in population, the average ownership per household went up from 3.72 percent in 199394 to 4.27 percent in 1995-96. The rural share of the market for durable goods has been growing steadily over the last few years, from 54.24% in 1989-90 to 56.6% in 199293 and to 57.9% in 1995-96. This share went up to 59.3% in 1997-98. For some products, like bicycles, mechanical wristwatches and radios, the rural share was in excess of 75%. In 1989-90 only 6 products had a share of over 50%, in 1995-96, this jumped to 10 products. During 1997-98, there were 11 products having more than 50% of its market in rural areas. 9


Consumer group The very rich The consuming class The climbers The aspirants The destitute Household income Above rs 215000 Rs 45,001-215,000 Rs 22,001-45,000 Rs 16,001-22,000 Below rs 16,000 Number (million) 1.2 32.5 54.1 44 33

Rural areas where nearly 70 percent of Indians live , have witnessed rapid market growth in recent times , driven largely by agricultural growth , income distribution , and inroads made by audio-visual media. The rural share of the market for durables goods has grown steadily over the last few years , from 54.2 percent in 1980-90 to 57.9 percent in 1995-1996 , while for a large variety of items such as bicycles , mechanical wrist watches , radio/transistors etc., the share of the rural market was in excess of 75 per. products Sales in rural markets(in percent ) Radio/transistor 75.2 Bicycle 78.08 Mechanical watches 76.59 Sewing machine 64.34 Table fans 61.89 Quartz watches 54.00 Black & white TVs 62.65 Cassette recorder 55.03 Motorcycles 47.87 Pressure cookers 51.51 Ceiling fans 50.36 Electric iron 43.85 Tooth paste 39.98 Talcum powder 45.25 The economic liberalization has given enormous opportunities it the fast moving consumer goods than any other segment. the increased penetration of several brands to the rural India has given a greater scope to the fast moving consumer good companies.



The fast moving consumer goods (FMCG) industry is poised to achieve an overall growth between 8%-8.5% in 2005-06, up 2-2.5% over the growth rate clocked in the previous year. This optimistic prognosis is revealed by the Survey on the FMCG sector carried out by Focis research division. 11

The survey released by FICCI president Onkar S Kanwar reveals that personal care products continue to ride high with excellent (20% plus) to high growth (10%-20%) rates in 12 products. The FICCI survey based on feedback from large FMCG companies and associations, shows that the sectors which are projected to achieve excellent growth of 20% and above in 2005-06 are deodorants (40%), hair dyes (30%), shaving cream, cleaners/repellents (22%) and anti-dandruff shampoos (20%). The excellent-growth achievers are thus set to improve their growth rates this year compared to their performance in 2004-05. In that year the growth rates were deodorant (40%), hair dyes (26%), shaving cream (21%), cleaners/repellents (22%), anti-dandruff shampoos (20%). The survey shows that in 2005-06, the sectors that are projected to achieve high growth between 10%-20% are: soap & toiletries (14 %), toilet soap (14%), tooth paste (10 %), personal health care (12%), oral care (12%), skin care & cosmetics (11%), skin/ fairness cream (12%), branded coconut oil (18 %), feminine hygiene (12%), and dish wash (10 %). In comparative terms, in the previous year, the sectors that have recorded high growth between 10%-20% are: personal health care (10%), oral care (10%), skin care & cosmetics (10%), branded coconut oil (15 %), shampoos (16 %), feminine hygiene (10%). The 2005-06 projections of some sectors that are set to record moderate and single digit growth are: washing powder (8.5 %), detergent cakes (7 %), liquid detergent (8.5%), laundry soaps/ bars (3 %), personal wash (7 %), tooth powder (5 %), tooth brush (5 %), coconut oil (6.5 %). In 2004-05, the comparable growth rates were: soap & toiletries (6.5 %), washing powder (8 %), detergent cakes (7 %), liquid detergent (8 %), laundry soaps/ bars (2 %), dish wash (8.5 %) personal wash (6 %), toilet soap (6 %), tooth paste (4.5 %), tooth powder (2 %), tooth brush (5 %), skin/ fairness cream (7.5%), coconut oil (5.5 %), feminine hygiene (10 %). 12

The survey notes that growth in urban markets has been much faster at about 7% and there has been revival in rural markets, though at a relatively slower rate of about 4 %. Higher growth rates in the companies like Dabur, Marico, Parle, Johnson & Johnson, Godrej Consumer, Procter & Gamble, Gillette and others have been achieved by innovation and well-planned distribution strategies adopted by the companies.Innovation and launching of new brands are being adopted by the companies to grab the market. For example, Godrej Consumer Products is focusing on product innovations and extensive advertising campaigns to popularize its soap brands.




Hindustan Lever Limited, 51.6% subsidiary of Unilever Plc, is the largest FMCG Company in the country, with a turnover of Rs. 114bn. The company's business sprawls from personal and household care products to foods, beverages, specialty chemicals and animal feeds. The company has a dominating market share in most categories that it operates in such at toilet soaps, detergent, skincare, hair care, color cosmetics, etc. It is also the leading player in food products such as branded packaged tea, coffee, ice cream and other culinary products.

HLL grew at a fast pace in the mid 90's driven by its aggressive acquisition spree. From a Rs. 38bn turnover (contributed 70% by soaps, detergents and personal products), HLL's turnover has now grown to Rs. 114bn, with personal products contributing to 56% to turnover and beverages and food products contributing to 36% to turnover. While growth during the last five years was being driven by fast growing personal products business, the pace has slackened significantly since 2005. In F12/00, soaps business de-grew by 3%, detergents grew by 8%, while other personal products (household care, oral acre, skin care, hair care, color cosmetics0 grew by only 4%. Expansion of the foods business, which has been identified as a major growth area, has not been as fast as anticipated. beverage sales move largely with commodity price trends, which have not been too 14

encouraging. Branded tea business grew by 5% in F12/00 while the ice-cream business has failed to takeoff registering a 4.3% degrwoth. The Rs. 2.7bn staple food business grew by 23.6% on the small base. The fast moving consumer goods business is characterized by two pillars strong brand equity and a wide distribution network. Brand equities are built over a period of time by technological innovations, consistent high quality, aggressive advertisement and marketing. Availability near the consumer through a wide distribution network is another crucial success factor, as products are of small value, frequently purchased, daily use items. HLL is strong on both these fronts with 110 brands and a 1mn strong direct retail reach. A slowdown in industrial growth and erratic monsoon in several parts of the country has led to a slowdown in consumer demand during the last.

HLL is the market leader in the detergent and soap industry. Nirma is a close competitor in detergents and has been slowly gaining ground in toilet soaps too. The other significant competitor in detergents is P&G. Despite being the global leader in this segment, has been unable to achieve a critical mass in India due to premium pricing strategy. In oral care segment, HLL has emerged as a strong No. 2 player, giving stiff competition to the market leader Colgate. In the hair care segment, HLL dominates the shampoo market and is the No. 2 player in hair oils. In the skin care market, besides competition from leading global players, HLL has also been losing share to south based player Cavincare Ltd. In the foods business, Tata Tea in packet tea, Nestle in Coffee and culinary products, GCMMF (Amul) in ice creams, and Godrej Pillsbury in staple food are the main competitors.



Personal Products Toilet Soaps Detergents Detergent cakes/Bars Scourers Oral care Shampoo Hair oil Skin care Talcum Powder 59% 39% 47% 59% 36% 64% 15% 55% 62% Foods & Beverages Tea Instant Coffee Roast & Ground coffee Ice cream Ketchup Jams & Squashes Atta Salt Edible oil & fats 36% 32% 54% 25% 41% 74% 18% 17% 27%

Profitable growth is the new mantra of the FMCG major's new Chairman Vindi Banga, who took over the reins from Keki Dadiseth last year. In contrast to Dadiseth's strategy of expansion through acquisition, Mr. Banga's strategy revolves around rationalization. A focus on 30 power brands, which are major contributors to profitability, seeking new avenues of expanding distribution reach, improving profitability of Foods businesses, which is in the investment phase are the thrust areas outlined by him. The non-FMCG businesses are either being are hived off or are being strengthened by

Partnerships with players who have the technological expertise in tose bossiness.

HLL's core business comprises of soaps (18%), detergents (16%), personal products (19%), Tea (16%), coffee (2%), Ice-cream (1%), culinary products (1%). Animal Feed, specialty chemicals and other small business contribute to the balance 18% of HLL's turnover. 16



Dabur India is into business of manufacturing and selling of ayurvedic medicines, ayurvedic, natural and herbal personal & health products and processes foods either directly or indirectly through its subsidiaries. The company is among top FMCG companies in the country. It its presence in Indian market for past 115 years. Most of its ayurvedic/OTC brands are the 17

market leaders in their respective segments. Dabur has developed considerable expertise in these

Traditional areas and has well developed considerable expertise in these traditional areas and has well understood the consumer preferences for the traditional ayurvedic remedial measures. The company hitherto had been a family run business but with increasing competition the company has undertaken massive restructuring over past 2 years and has exited form a number of low margin businesses. The company has hived off its foods business into a 100% subsidiary. In FY00 the company sold off its entire stake in Excelsia JV with Nestle for manufacturing biscuits for a nominal value of Rs. 10. The company has also decided to wind up its finance businesses.

Though the company exited form beauty products business but with increasing market size and higher margins the company has revived its interests in reentering the business. The company recently decided to venture into Insurance sector in a tie up with Allstate. In Q1 FY01 the company's sales grew 6.1% yoy growth to Rs. 2.5bn. On a comparable basis (i.e. excluding sales from foods business) yoy growth in sales would have been higher at 10%. Operating profit margin excluding other income has recorded a 0.7% point gain from 6.5% to 7.2% mainly aided by lower raw material cost. Net profit in the previous corresponding quarter was inflated due to a non-recuring income of Rs. 211mn from sale of stake in confectionery joint venture General de Confeteria (now Joyco India). Adjusted


net profit after including this non-recurring income therefore displays a 73% yoy decline of Rs. 72mn.

BUSINESS Ayurvedic products, based on natural elements/herbal extracts, originated in India. Have become popular in the OTC segment, wherein significant advertising and promotional expenses have to be incurred in order to increase consumer awareness. But, in the absence of price controls margins are attractive once a brand is established. Most large ayurvedic players such as Dabur, Zandu, Baidyanath etc. leverage on brand equity, new product launches and established distribution network to drive sales. Exports are also limited to mainly OTC products promoted as tonics/food supplements etc.

The company has also established strong brand equity in personal products like hair oils, shampoo, etc. The company has diversified into the foods business, directly and throughjoint ventures.Dabur's key growth driving brands are Chyawanprash, PudinHara, Hajmola, Dabur Amla, Dabur Vatika and Lal Dant Manjan.

1. Desk research : familiarity with the topic and the market were gained through 2. Pilot study: the main objectives were to finalize the method of measuring effects of advertisement on purchase decision (including 19

testing its validity). It proved beneficial even for finalizing the research objectives, hypothesis and questionnaire. For the pilot study a sample size of 100 was randomly select from college and near by places. 3. Questionnaire: Care was taken to see that the question asked were neither in excess of nor short of what was required by the research objectives and hypothesis. The coding plan for data entry was incorporated into the design of the questionnaire thus making the subsequent task of data entry. Numbers of questionnaire used are two one for survey on shampoo or other for survey made on toothpaste. 4. Sampling: data was collected from college campus. It was selected because of the different profile of house hold offered by them. Some care to include to the people of different age group, income group, and occupation. Within the town the localities and household were selected randomly. The total sample size was 100 respondents 50 for survey made on shampoo and other for survey made on toothpaste. Respondents include both male and female. 5. sources of data : data is collected both through Secondary sources - Media- from where the knowledge about different brands and their ads, Journals etc. Primary sources - Field survey through filling of questionnaire. 6. Data checking validation and analysis: was done with the help of a computer . given the nature of hypothesis and data, some assumption are used. 7. some assumption in the questionnaire : Monthly income of the students was the money taken from their parents



What are the target groups of various product ads? How the target groups of various products are reached through ad? How much and how the consumer decision are effected by the ads? Where the ads are lacking the target? What the consumer view about ads, are they think that ad deceives them or wastage of money?



Every day each of us makes numerous decisions concerning every aspect of our daily lives. This decision includes big decision and small decision about purchase of daily consumable goods and our decision on these daily consumable goods are effected by our level of knowledge because we generally not make a search for data to make such decision. So we are more dependent on the knowledge we get easily from external environment. Advertisement is the best source to get that knowledge So advertisement has effect on our purchasing decision. Study is important to know how the advertisement effects the decision while making the purchase. From the company point of view, brands are expensive to create and have a high mortality rate. It is in the interest of business to ensure that they stay strong and healthy. Only advertisement can do this task more efficiently. Given the importance of advertisement, marketing managers must know which element of marketing strategy can be used to increase brand name through advertisement. Study is important to know how the target groups are given the advertisement and how the companies give the advertisement in that competitive environment.



Many people in India still clean their teeth with traditional products like neem twings, salt, ash, tobacco or other herbal ingredients. Average all India per capita consumption of toothpaste is a DISMAL 82 GMS The dentist to population ratio is a critically low 1:35000 in the country. This result in low oral hygiene consciousness and widespread dental disease. Less than 15% of the Indian toothpaste users brush twice a day. The toothpaste market grew at a CAGR of 7-8% between 1995-2000 but in 2005 the market grew by only 6% Colgate and Hindustan lever together account for over 85% of the organized toothpaste market. Red and black toothpowder still accounts for 35% of the toothpowder market. In toothpowders , Colgate and dabur are the leading players sharing between them 75% of the market Penetration of toothpaste in the urban areas has been declining, as more and more consumes switch from powder to paste. Brand loyalty is quite high for toothpaste, but is extremely low for Toothbrushes. 10 years ago the most expensive toothbrush was priced at Rs 4. today one can also buy a toothbrush priced at Rs.999



Age Group 15-20 20-25 25-35 Above 35

40 35 30 25 20 15 10 5 0 %age

No. of People 5 20 15 10

%age 10 40 30 20

15-20 20-25 25-35 Above 35

Survey was made on the people who use toothpaste. Survey includes the people of different groups such as 13-20, 20-25, 25-35 and above 35. Mostly are the young mature people, as 20 are in age group of 20-25 and 15 in age group of 25-25. Mostly are the married people and single earner in their family. Students are more in the age group of 20-25 and 13-20 all are students. Old age people are less included in the survey. People between the age group old 25-35 are mostly the serviceman and having both the couple working.


Monthly Income 5000-10000 10000-15000 15000-20000 Above 20000

No. of People 12 18 12 8

%age 24 36 24 16

40 35 30 25 20 15 10 5 0 %age 5000-10000 10000-15000 15000-20000 Above 20000

Mostly incomes of the most of the people are between 10000-15000, as out of 50, 18 have the income in this group and 12 each come under 5000-10000 and 15000-20000 income groups. A person belongs to lower middle class; milled class and upper middle class are included in the survey. Only 1 has the income more than 20000. Some family have the combine income of both the husband and wife but the income is taken of one who included in the survey. If their

Occupation Serviceman Farmer Self employed Businessman Student

No. of People 18 4 6 12 10 25

%age 36 8 12 24 20

40 35 30 25 20 15 10 5 0 Serviceman Farmer Self employed Businessman Student

Respondents are tried to include of different occupation such as Serviceman, Farmer, Self-employed, Businessman and Students. Numbers of serviceman are more as survey includes 18 out of 50. Servicemen mostly have two earners in their family as both the husband and wife are working. Students are also part of the survey mostly the university student who doesn't earn him or her; they get the money from their parents. But student are the most important segment as they are more targeted by most of the advertisement.

Sex Male Female

No. of People 28 22

%age 56 44


60 50 40 30 20 10 0 Male Female

Survey is not restricted to either the male or female respondent only. Both the sexes are included in the survey. Numbers of males are more as 28 out of 50 or 56%, is not makes a big difference. No female farmer of businessman found in the survey. I do the survey in district court here I found some professional ladies. Some girls of university are also in the survey and the service staff in government offices. Male respondents are almost equal from all occupation.

Use Toothpaste Yes

No. of People 48 27

%age 96


100 80 60 40 20 0 Yes No

A survey try to include those people only, who are using toothpaste as 48 out of 50 use toothpaste and only 2 who are (Datoon) only. Some other also use (Datoon) sometime but mostly uses toothpaste. One person who use D Student Datton only are the age of 62 years and a retired retirement and the other a student how believe in using natural things provided by nature. These two never use brush and toothpaste and he believes that his teeth are stronger than other. But normally people use toothpaste only.

Brand Preference Close up Colgate Pepsodent Babool Others

No. of People 14 10 14 4 6 28

%age 29 21 29 8 13

30 25 20 15 10 5 0 Close up Colgate Pepsodent Babool Others

For the question of brand preference, some selected brands are chosen only. These are Closeup, Colgate, the Pepsodent, Babool and other if any. Out of all there brand Closeup and Papsodent are of Hindustan Lever Limited and have limited and have more sale than other. Both combine have 28 respondents out of 48 whom use Closeup and Pepsodent 14 each and 10 who use Colgate and 4 who use Babool, 6 are those who use other brands. There day HLL doing the more aggrieve marketing and give more advertisement on T.V. so they

Seen Product AD Yes No

No. of People 48 0

%age 100 0


100 80 60 40 20 0 Yes No

When the people are asked that have they been seen the advertisement of the product they are using> the results were 100% all the 48 responded in yes. At because of fast growing use of television and more number of channels, people are more aware of the product through its advertisement. People now have more information about the new brands come in the market and which brand is giving more advertisement.

Where seen the AD T.V. Magazines Newspapers Others

No. of People 48 4 6 10 30

%age 70 6 9 15

70 60 50 40 30 20 10 0 T.V. Magzine Newspapers Others

Where the people seen the advertisement of the product they are using? One more result, which comes in 100% that all the people seen the advertisement on T.V. They have seen the advertisement on some other places also such as retailer shop, magazines and newspaper. Much of the information about the product in taken by the people from advertisement on T.V. There day people are more rational in their decision or they know every thing about the product and its attributes. They need not to make much reach of additional data for taking their decision because advertisement already increase their knowledge.

When seen the AD 7.00A.M. to 10.00A.M. 12.00P.M. to 4.00 P.M. 7.00 P.M. to 10.00 P.M. After 10.00 P.M.

No. of People 4 16 24 4

%age 8 33 51 8


60 50 40 30 20 10 0 7.00A.M. to 10.00A.M. 12.00P.M. to 4.00 P.M. 7.00 P.M. to 10.00 P.M. After 10.00 P.M.

As the people usually watch T.V. but that time it is also more important the time when they see the toothpaste advertisement more and when their decision is more effected. Mostly people watch the product advertisement at prime time of T.V. between 7.00 P.M. to 10.00P.M. as 24 out of 48 mean 50% and other higher number in 18 out of 48 means 33% seen the advertisement between 12.00 P.M. to 4.00 P.M. when the house ladies are at their home and watch the family dramas of serials. Only 4 were seen the product advertisement. Morning time between 7.00A.M. to 10.00 A.M. and 4 who seen the advertisement after 10.00 P.M. at night. Channel Zee T.V. Star Plus Movies Sports No. of People 22 30 14 10 %age 24 32 15 11


35 30 25 20 15 10 5 0 Zee T.V. Star Plus Movies Sports

Channel where the advertisement is shown is very important. Marketer tires to give the advertisement on those channels, which is watched by the majority of the people. Respondent are given four options only. The results are more in favour of Star PLUS as 30 respondent watches the advertisement on the channel. Another important channel is ZEE TV. Less of the respondents see toothpastes advertisement on movies or sports channels. But big problem faces by the advertiser is that the people shift to the other channel when the advertisement come on one channel.

Who influence Purchase Husband/Alone Wife/Alone Children

No. of People 18 24 6

%age 38 49 13


50 40 30 20 10 0 Husband/Alone Wife/Alone Children

Purchase decision about the product or brand to be purchased is most important. In most of the families the housewives and ladies take the decision about daily usage small goods. Some in the case of toothpaste, wife's generally tell their husband about brand to be purchased or sometime they herself purchased the product from the market as 24 out of 48 are wife/alone. Husband/alone are 18 including hostlers those who take the money from his father, but the decisions about the purchase of brand is their own. Children who came between the ages of 13.20 are purchase the toothpaste mostly after seeing the advertisement on T.V.

How long have you been using 3 Months 6 Months 1 Year More than 1 Year

No. of People 8 10 20 10 34

%age 17 21 41 21

50 40 3 Months 30 20 10 0 6 Months 1 Year More than 1 Year

The use of toothpaste is more sable than in case of shampoo as the toothpaste once purchase used for one month and next month usually person purchase the same brand. Trail ability is more in case of toothpaste also, as 50 gm. tube is also available. How long the respondent are using the product, is 1 year or more than 1 year as 30 out of 48 use it 1 year or more than 1 year. But still some shift in also there as some use it from 3 months and 6 months only mean there is shift to the other brand. After some time companies come with new and better in the product and knowledge about that they come to know through T.V. advertisement. Influences Purchase Decision Cost Loyal Customer Availability Product Characteristics Other No. of People 16 12 14 22 8 %age 22 17 19 31 11


35 30 25 20 15 10 5 0

Cost Loyal Customer Availability Product Characteristics Other

Now comes the influences on purchase decision, which factor out of cost, loyalty, availability, product characteristics influence the purchase decision. Respondents are asked to tick one or more. So the maximum people purchase toothpaste because of product characteristics or its attributes. Then the second more importance is given to the cost. Here one surprising fact is that people give the importance to price but the percentage of people who use Babool toothpaste are less instead of heaving less price. Then comes the availability of products in the particular market. Some time we decide to purchase a particular brand but purchase some other because that brand was not available in the market at the time. This is also one of the strong point which influence the purchase decision. Why this brand only Whitening teeth Gum care Breath freshness Herbal Contents No. of People 26 24 18 8 %age 33 32 24 11


35 30 25 20 15 10 5 0 Whitening teeth Gum care Breath freshness Herbal Contents

Question arises here is that, if the entire brands are usually having the equal price, why the people purchase a particular brand? As I find out earlier that people purchase particular brand because of product characteristics so their decision is more influence by the problem which they face, and the product, which satisfied their need in the better way. Mostly people purchase the product for whitening their teeth, as 26 out of 48 given this reason. 12 purchase from gum Care, 18 for breath freshness and some because of herbal contents. So the toothpaste market is more targeted to a particular segment.

What appeal in AD AD Script Projected Celebrities Voice Spotting Action

No. of People 16 12 12 18

%age 28 21 21 30


30 25 20 15 10 5 0 Spotting Action AD Script Projected Celebrities Voice

So, what appeal more in the advertisement? Ad script, projected celebrities, voice of music, spotting action. The respondents are asked to tick one or more than one answer. The maximum are agree with the spotting action such as comedy, romance etc. Other more number are in favour of Ad script. 18 says about spotting action and 16 says about Ad script, 12 each are in favour of projected celebrities such as famous models, kids etc. or voice and background music. If the advertisement appeals more to the customer then he/she will definitely go for the purchase of that brand.

One more statement with likert scale given the questionnaire so that, how much the people are agreed with the statement that advertisement deceives of cheats customers. People have equal thinking about both the views or mostly never think about it. Some respondents first disagree with the statement but after some time they shift to the neutral or disagreement side. Maximum 14 are neither agreed nor disagree with the statement, 18 was agree or strongly agree, 16 was disagree or strongly disagree with the statement.


People normally don't think about that they are not aware about the think is that their decision change because of advertisement effect.

What the people think about money spend by companies on advertisement? As we know that expenditure on advertisement add to the product cost, what the people think about? Do they agree with the statement that advertisements are the wastage of money? People are disagreeing with the statement. Some who responses that advertisements deceive or cheat customer are also disagree with the statement because they believe that advertisement give the knowledge of products or brand which satisfied their need or desire in the better way. 20 out of 48 was disagree with the statement, 8 neither agree nor disagree, 10 was agree and 2 was strongly agree with the statement. He told that more than 50% of cost of the product increases due to the expenditure on advertisement.

Reaction to the AD Immediate Purchase Purchase After Sometime No Reaction at all

No. of People 8 36 4

%age 17 75 8


80 70 60 50 40 30 20 10 0 Immediate Purchase Purchase After Sometime No Reaction at all

Now the last question in the toothpaste survey is the reaction of people to the particular advertisement, means after how much time they take to go for the purchase of product. Either they do immediate purchase or purchase after the products get some market share or not react at all. 36 out of 48 say that they purchase the product only after the product gets some good reputation in the market. Some purchase product satisfied their need or desire in the better way as compared to the previous product; they shift to that brand otherwise go back to their old product. Trail ability make the shampoo market more fluctuating, so the common point of view is that the decisions are taken on advertisement basis but only after the product gets some reputation in the market.


Target Group


Toothpaste industry is now more targeted to the particulars segment with their targeted consumer. Market for toothpaste is mainly divided in four groups. People who prefer for Whitening teeth People who prefer for Gum Care People who prefer for Breath Freshness People who prefer Herbal Content

There is separate target group of customers but some advertisement as brand try to target two or more groups also. The first three groups have all most equal share and Herbal toothpaste have fewer roles because of less advertisement.


Targeted segment are given the advertisement as the product can solve their problem in the better way than by only other brand.

Projected celebrations are use, as models or young age college-going students are shown. As the Close-up advertisement show the young boy and girl come close because of breath freshness.

Time is most important as the advertisement is given mostly on prime time between 7.00 p.m. to 10.00 p.m. to target the most extent customers as possible. 41

Advertisements are given on famous channels such Start Plus, Zee T.V., Sports & Music Channel.


As the toothpaste don't have as much trainability as the shampoo have but have some trainability with small size of tubes which effect the purchase decision as the people can try new product as product with new characteristics with small size of tubes.

Decision of the purchase in more effected by advertisement if the customer face only problem and advertisement give the solution to that problem.

Price is not given much consideration as the Babul have fewer sales instead of having less price.

Decision in effected by advertisement and also by availability of product in the market sometime you select the brand but don't find with the retail and purchase some other.

Some people are of the view that we should change the brand after some time, as it is being prescribed by doctors.


More regular advertisement built more positive attitude of the people towards a particular brand as these day.

Close-up come with new slogan Talk to me which help them to increase their role in market.


Survey shows that mostly house ladies are purchase or decide about which brand to be purchased by advertisement of toothpastes target them less. As mostly youngster are targeted with advertisement.

Herbal contents shown by many product advertisements, which can in the effect of the purchase decision more. But still not shown to the much extent, which can be a good market.

Old age people never targeted by advertisement, which can be a good segment for toothpaste market.

Sometime advertisement tries to show something more than the actual product, which increase the people's expectation, and later on cause the bad reputation of product.

Advertisement should not show obscene or vulgar scene, which are not come under ethical code of conduct.



People are agreeing with the statement that advertisements change their decision sometime in wrong direction. It creates the feeling of sometime missing which is very essential.

Advertisements are not taken as the wastage of expenditure as it increases the knowledge more than its disadvantage. Only quality product service in the market.

This advertisement leads to the monopoly in the market as HLL enjoy the maximum share in daily consumable. So there are the chances or raising prices.



The frequency of shampoo usage is very low. Most consumers use shampoos only once or twice a week. In many cases, these products are used on special occasions such as weddings, parties etc. Some consumers use shampoo only to address a specific problem such as dandruff or when they need to condition their hair.

Use of conditioners is not common. It is restricted to the super premium segment or those are very involved with their hair care About 50% of consumers use ordinary toilet soaps to wash their hair. About 15% of consumers use toilet soaps as well as shampoo for cleaning their hair. Brand loyalties in shampoos are not very strong. Consumers frequently look for a change, particularly in fragrances. Consumers attribute lathering to the act of cleaning. Major expectations from the product are improvement in texture and manageability, giving softness and bounce to hair, curing and avoiding damage to the hair. An Indian needs more shampoo for a proper wash (average 6 ml) compared to 4 ml needed in Western countries as most Indian women have long hair. Most consumers do not use shampoo daily. Regular users would need smaller quantity of shampoo per bath. Southern market is predominately a sachet market, accounting for 70% of sachet, volumes. In sharp contrast, shampoo bottles are sold in the Northern region alone. In the North, local brands such as Ayur have strong equities and these products being low priced dilute sachet's USP of low price. 45

ANALYSIS OF DATA Age Group 13-20 20-25 25-35 Above 35

40 35 30 25 20 15 10 5 0 13-20 20-25 25-35 Above 35

No. of People 6 14 18 12

%age 12 28 36 24

Survey includes the people between the age of 15-20, 20-25,k 25-30, above 35. More people were in age group of 25-35 as 18 or 36%, followed by 20-25 as 14 and above 35 as 12. Survey tries to include those people who usually purchase the shampoo in their family. Survey includes mostly the young age respondent with the income group of 10000-15000. They are mostly the servicemen and some have two earners in their family. Students are more in age group of 13-20 and 20-25. Ladies are almost equally included in al age group.


Monthly income 5000-10000 10000-15000 15000-20000 Above 2000

40 35 30 25 20 15 10 5 0

No. of People 14 20 14 2

%age 28 40 28 4

5000-10000 10000-15000 15000-20000 Above 2000

Monthly incomes of people who are included in the survey have monthly income between 5000-20000. Only two respondents have ranging above 20000. 20 out of 50 had the monthly income 10000-15000 followed by 14 people each in the group of 5000-10000 and 15000-20000. Middle class families are included as they are more aware of brands and prices. Income of those who don't have fixed monthly income like farmers, businessmen are taken annual income divide by 12.

Sex Male Female

No. of People 30 20

%age 60 40


60 50 40 30 20 10 0 Male Female

Survey includes both the genders. Out of 50, 30 were male and 20 were female, means almost an equal number. As the shampoo is consume by both the male and female but the consumption by females is more and they even purchase shampoo for her. Male consumption is also more in Punjab because males here usually have long hair. Females are mostly the students and servicemen/service women and males are mostly the farmers, businessmen and self-employed. Both the sexes are almost in all age group and income group.

Use Shampoo Yes No

No. of People 45 5

%age 90 10


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

Out of 50 people include in the survey only 2 are the non-user of shampoo and person use Kashnikhar soap. Some other people also use soap and other things but they use soap and other things but they use soap and other things but they use shampoo also. As the people are more careful about their hairs usage of shampoo is now increasing. Only few remain on the old ways or using soap. The entire student, servicemen use shampoo only. Some other also uses soap and other

Brand Preference Clinic Plus Head & Shoulders Pantine Vatika Lux Others

No. of People 12 18 8 4 4 2

%age 25 38 17 8 8 4


40 35 30 25 20 15 10 5 0 Clinic Plus Head & Shoulders Pantine Vatika Lux Others

There are different brands available in the market. Survey includes Clinic Plus, Heads and shoulders, Pentene, Lux and Vatika and other comes under if any other. Most of the people use Head & Shoulders instead of having higher price, as 18 out of 48 and 12 uses Clinic Plus. One thing must be noted here is that, these days more advertisement of Head & Shoulder are coming on the T.V. Lux which the company targeted to those who like glossy hairs have only 4 user.

Packing Preference Bottle Pouch

No. of People 14 34

%age 29 71


80 70 60 50 40 30 20 10 0 Bottle Pouch

People who are using the shampoo prefer to use it in small pouch available just in Rs. 2 or more. The 14 use shampoo in bottle and 34 prefer in Pouch. Pouch increases the trainability of Shampoo as person can try different brands if they are not satisfied with one. One more important thing is that people like to pay small amount. They are ready to purchase quality product at higher price but the payment in installment. That is why Head & Shoulder is sold maximum instead of having more price, as Rs. 4 per Pouch. These days packaging is one of the very important tool in the market work as the 5th P of marketing mix.

Seen Product AD Yes No

No. of People 44 4 51

%age 92 8

100 80 60 40 20 0 Yes No

While talking about the product advertisement of the brand, which they are presently using, 44 out of 48 see the advertisement either on T.V. or some other place. As they come to know about the new brand from advertisement only. Those who not the advertisements of the product they are using are either the hostlers or come know about the product from retailer shop only. One interesting thing told by the respondent that some brands are suggested by the retailer as it a part of strategy use by the companies to give more commission to the retailer.

Where seen the AD T.V. Magazines Newspapers Others

No. of People 38 6 0 10 52

%age 70 11 0 19

70 60 50 40 30 20 10 0 T.V. Magazines Newspapers Others

As because of increasing channels and more people are watching T.V. Mostly people see the advertisement only on T.V. because they don't have a habit of reading newspaper or magazines. Only 6 out of 44 who see the advertisement on magazine and 10 see it at retailer shop only. T.V. is the most preferable mean used by the companies to give advertisement. Some advertisement of toothpaste is give no newspaper or magazine but very less on some selected newspapers or magazines.

When seen the AD 7.00A.M. to 10.00A.M. 12.00P.M. to 4.00 P.M. 7.00 P.M. to 10.00 P.M. After 10.00 P.M.

No. of People 4 12 24 4

%age 9 27 55 9


60 50 40 30 20 10 0 7.00A.M. to 10.00A.M. 12.00P.M. to 4.00 P.M. 7.00 P.M. to 10.00 P.M. After 10.00 P.M.

When they see the advertisement, mean that time when the people mostly watch T.V. and watch the advertisement at that time. Most of the people watch T.V. from 7.00 P.M. to 10.00 P.M. so they seen the advertisement at that time as 20 out of 44 and followed by 12 from 12.00 P.M. to 4.00 P.M. when the housewives are mostly in home and they watch family drama and serial. Housewives are mainly deciding about these daily wage products as what brand and what quantity so advertisement at that time targeted to them only.

Channel Zee T.V. Star Plus Movies Sports Other

No. of People 20 24 24 12 16

%age 23 27 18 14 18


30 25 20 15 10 5 0 Zee T.V. Star Plus Movies Sports Other

Channel use by the companies or advertisement agencies is those with strong viewers. These days Star PLUS, Zee TV, Sony are the most popular channels in India so mostly the advertisement targeted to households are given on these channels. 24 out of 38 who had seen the advertisement see it on Star Plus, 20 on Zee TV, 16 on various movie channels, 12 on sports channels and 16 on some other channels. Some are seen the advertisement on more then one channels. Respondents was ask to tick one or two if some other channel.

Who influence Purchase Husband Wife Children

No. of People 16 24 8

%age 33 50 17


50 40 30 20 10 0 Husband Wife Children

Purchase of shampoo is mostly making by ladies as 24 out of 48 responses on flavor of ladies. Some men also told that there wives tell them the shampoo to be purchased. Men are 16 who himself purchase the shampoo or tell their wives to purchase the particular brand for him. Children are 8 only who below the age of 20. As I told earlier that housewives mostly purchase daily wage products, so the ladies are the more targeted group for fast moving consumer goods by the advertisement companies. Men also have influence on purchase but they usually take those decision where the big monetary transactions are involves.

How long have you been using 3 Months 6 Months 1 Year More than 1 Year

No. of People 18 14 10 6

%age 29 42 21 8


45 40 35 30 25 20 15 10 5 0 M ore than 1 Year 1 Year 3 Months 6 Months

As the people prefer to use the shampoo in pouches. They shift two other brands after some time. Respondents mostly use the product from 6 months and 3 months. Only 14 are those who are using the product from 1 year and 6 those who use it from more than one year. It means they are not stitch to the one brand for a long time. These days new and new shampoos are rounding with additional attributes force or influence the customer to shift to that brand. Trail

Influences Purchase Decision Cost Loyal Customer Availability Product Characteristics Other

No. of People 14 10 15 19 9

%age 21 15 22 29 13


30 25 20 15 10 5 0

Cost Loyal Customer Availability Product Characteristics Other

Purchase decision made by family on these types of daily usage products is mainly effected by the price of the product, but this was not so true in case of shampoo. 19 people out of 48 have the influence of product characteristics on their decision. People purchase the shampoo because of product characters and its availability in the particular market as some people don't have fix brands they use any brand available in the market with the product characteristics that satisfied their need.

Why this brand only Dandruff Glossy Hair Preventing Hair Loss Herbal Contents

No. of People 24 16 18 14

%age 34 22 25 19


35 30 25 20 15 10 5 0 Dandruff Glosy Hair Preventing Hair Loss Herbal Contents

Shampoo industries are growing very fast from part four to five years. Products are coming targeted to particular segment. As the popular segments are dandruff shampoo, for glossy hairs, for preventing hair lose and shampoo with herbal content. Each enjoy good market share. More people prefer dandruff shampoo as 24 out of 48, followed by 18 who purchase for preventing hair. Dandruff problem is one of main reason the Head & Shoulder are sold maximum Ludhiana because shampoo provide the better dandruff solution.

What appeal in AD AD Script Projected Celebrities Voice Spotting Action

No. of People 16 18 10 16

%age 25 30 20 25


30 25 20 15 10 5 0 Spotting Action AD Script Projected Celebrities Voice

At the time of purchase decision the influence of advertisement is there. What the people like most in the particular advertisement, which affect most their decision. As maximum 18 out of 44 are influenced by projected celebrities like any film star or sports star etc. Other thing appeal more in the advertisement is advertisement script or sporting action like comedy, romance etc. the success of the advertisement decide the volume of sales and more liked advertisement have more influence on purchase decision of the consumer. What the people think about the advertisement either advertisement deceives customers or not. Respondent have equal number of agreement or disagreement as 12 were agree with the statement and 8 were strongly agree, 14 were disagree or 4 were strongly disagree, 19 were those were neither agree nor disagree with the statement. As some think that advertisement force them to purchase the product as advertisement create a feeling of something missing in the life but other think that advertisement give the knowledge and helps as in taking more rational decision, 60 which otherwise could be

wrong.Advertisement is not the wastage of expenditure as most of the people are disagree or strongly disagree with the statement. 18 out of 48 disagree with the statement and only 12 are agreed or strongly agreed. Some of those who think those advertisements deceive them also disagree with the statement because the knowledge given by the advertisements are more useful. They think that it advantages are more than its disadvantages.


Reaction to the AD Immediate Purchase Purchase After Sometime No Reaction at all

90 80 70 60 50 40 30 20 10 0

No. of People 4 40 4

%age 8 84 8

Immediate Purchase Purchase After Sometime No Reaction at all

The last question in the survey was the reaction to the particular advertisement. Mostly people don't go for the product immediately after the advertisement comes on T.V. or at other place. People are mostly follow people when product gains some share or reputation in the market. In case of shampoo some people shift to the new products immediately after the new product come with some new product because of pouch available which make more trainability for the product.


Shampoo industry in India is divided into four major segments and each segment targeted to the fix consumers their segments are: Shampoo for Dandruff Solution Shampoo for Glossy Hair Shampoo for prevent hair loss Shampoo with herbal content.

Survey finds that dandruff solution shampoos have more strong market. So Head & Shoulder and Clinic Plus enjoy more market share.


Advertisement to the target market is given as the solution of the problem such as dandruff solution, preventing hair lost etc. Advertisement are targeted mostly to the middle class which have the effect of projected celebrates on their purchase decision, so the famous film star, sports starts, model and personality are show in the advertisement.

Time of the advertisement is one of the most important factors. Some advertisements are mostly give between 12.00P.M. to 4.00P.M. targeted to housewives, and at prime time between 7.00 P.M. to 10.00 P.M. to reach the advertisement to the maximum extant it can reach and maximum effect it can make on purchase decision.


Advertisements are mostly given on the T.V. in famous serials and on famous channels such as Zee T.V. Star Plus and on movies channel and one sports channels.

Advertisements have the much effect on the purchase decision of people show the maximum sale of heads and shoulders because these day decisions more advertisement of Head & Shoulder come on T.V.


Product is put in the market more through pouches this increases the trailability, mean people shift to new brand on trail basis and stand their until new brand satisfied them more better way.

Product characteristic, mean if the product give the solution to the problem they are facing they go for that product.

People frequently shift to other brand after six months or 1 year with the decreasing in advertisement on T.V. and other brand start showing much advertisements.

Purchase decision are effected by advertisement if the product have some reputation in the market new product with more advertisement is purchase only when the people come to know about its demand in the market and after trail by himself or herself. 64

Cost of the product effect the purchase decision but product characteristic has more influence.


Survey shows that mostly house ladies are purchase or decide to which brand to be purchased but advertisement of shampoo never targeted to the segment.

Herbal contents are not shown by much the product advertisement, which can in the effect of the purchase decisions more. As people have the perception is that the herbal mean more natural with no harmful effect.

Old age people never targeted by advertisement, which can be a good segment for shampoo market.

Sometime advertisement tries to show something more than the actual product, which increase the people's expectation, and later on cause the bad reputation of product in the market.

Advertisement should not shown obscene or vulgar seen which are not come under ethical code of conduct.



People are agreeing with the statement that advertisements change their decision sometime in wrong direction. It creates the feeling of sometime missing which is very essential.



The findings of this research apply, at best, to Punjab only. Even there, the selection was not random and some could consider a sample size of 50 respondents small.

As all income groups were included in the scope of the research the questions had to kept simple so that the uneducated and the in articulate could also answer them. This ruled out the use of sophisticated analytical techniques.

Questionnaires don't have any question about what is lacking in the advertisement, which was the part of objective.

Error may occur due to calculation and tabulation.

As human intelligence and perception are different there may be chance that analysis, interpretation and conclusion drawn out of the findings subject to error.

Then, of course, there are those limitations that are common to all empirical researchers and can arise at any stage of the research process e.g. mistakes may have been made in selecting respondents, in asking questions, while recording answers, while entering data or while correcting it etc. Respondents may have deliberately or inadvertently misled the data collector.


The project was based on the study of consumer behavior. How the consumer decision for the purchase of daily consumable or durable goods are affected through advertisement . companies or advertisement agencies are tries to give the advertisement more targeted to give the advertisement more targeted to the customers need or desires .


QUESTIONNAIRE Name______________________ Age group: 13-20 20-25 25-35 above 35 Monthly income 5000-10000 Occupation Self employed serviceman Farmer Student Sex Male 1. Do you use shampoo? Yes no female businessman 10000-15000 15000-20000 above 20000

2. Which brand you are using or preferring clinic plus Pentine Any other herbs & shoulders vatika lux

3. Have you seen that product ad? You are using? yes no

4. Where did you see that ad? TV. Magazine 5. If t.v. when did you mostly see that ad 7.00-10.00 a.m 7.00-10.00 p.m 12.00-4.00 p.m after 10.00 p.m 69 Newspaper

6. who purchase this product in your family Husband Children 7. Which channel you usually watch ? (One or more) Zee t.v star plus movies sports others 8. How long have you been using this brand ? 3 months 6 months 1 year more than 1 year 9. Which factor influencing you to making a purchase? Less cost Easy availability Any other 10. why you are using that brand only? for dandruff solution preventing hair loss glossing hair herbal content loyalty product characteristics wife

11 you are using that brand because of ad. Effect? strongly agree strongly disagree 12. Which factor appeal you most in the ad ?( one or more) ad script projected celedrities Voice sporting action 13. Ads deceive customer? strongly agree agree strongly disagree 70 neither agree nor disagree disagree agree disagree Neither agree nor disagree

14. ads are wastage of resources ? strongly agree agree neither agree nor disagree disagree strongly disagree

15. How you reacted to the particular ad? immediately purchase the product Purchase after its reputation builds up not react at all