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ANALYSIS OF DIRECT MARKETING AND CONSUMER

BUYING BEHAVIOUR
Submitted in partial fulfillment of the Requirements for
(M.M.S)
(2009-2010)

SUBMITTED BY
SUDHIRKUMAR SURENDRANATH
PANDEY
Roll No: (39)
(Marketing)
Batch: (2009 - 2011)

UNDER THE GUIDANCE OF


Mr. SATYARAJ SUDHAKARAN (TSO)
(HINDUSTAN UNILEVER)

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H & G H Mansukhani Institute of Management

H & G H Mansukhani Institute of Management


Ulhasnagar
MAY 2010- JUNE 2010

Student’s Declaration

I hereby declare that this report submitted in partial fulfillment of


the requirement of the award for the Master of Management
Studies to H & G H Mansukhani Institute of Management is my
original work and not submitted for award of any degree or
diploma fellowship or for similar titles or prizes.

Place : Ulhasnagar

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Date : September, 2010

Name : SUDHIRKUMAR SURENDRANATH PANDEY

Class : S.Y.MMS (Marketing)

Roll No. : 39

Certificate

This is to certify that the dissertation submitted in partial


fulfillment for the award of (M.M.S) of H & G H Mansukhani
Institute of Management is a result of the bonafide research work
carried out by Mr. SUDHIRKUMAR SURENDRANATH PANDDEY
under my supervision and guidance, no part of this report has
been submitted for award of any other degree, diploma,
fellowship or other similar titles or prizes. The work has also not
been published in any journals/Magazines.

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Date Industry guide : Mr. SATYARAJ
SUDHAKARAN (TSO)

Company :Hindustan Unilever

Place: Designation : _______________

I/c Director

(Mrs. Swati
Sabale)

ACKNOWLEDGEMENT

Preparing a project of this nature is an arduous task and I was fortunate


enough to get support from large number of persons to whom I shall always
remain grateful.

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I take this opportunity to express my deep sense of gratitude and
appreciation to my project guide Mr. SATYARAJ SUDHAKARAN (TSO) for
assistance, motivation, and being a continual source of encouragement for
me.

I am thankful to my project guide Miss. Manali Paradkar for his timely


guidance, Cooperation and encouragement with immense pleasure I would
like to express my sincere thanks & gratitude to my college and colleagues
for having given their invaluable inputs directly or indirectly towards this
project.

I would also like to thank all the respondents for giving their precious time
and relevant information and experience I required , without which this
project would perhaps not have been possible,

Table of Contents

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Sr.No. CONTENTS Page Number

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CHAPTER 1 1. Executive Summary

2.1 Introduction

2.1.1 Introduction to the Subject

2.1.2 Introduction to the Industry

2.1.3 Introduction to the Company

2.1.4 Introduction to the Project

2.2 Objectives

2.3 Methodology

2.4 Sampling Design and Sample Size

2.5 Limitations of the Report

CHAPTER 3 3.1 Analysis & Findings

CHAPTER 4 4.1 Conclusions

4.2 Recommendations

ANNEXURES A-1 All tables

A-2

A-3

E xecutive S
ummary

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Hindustan Unilever Limited is the Indian arm of the Anglo-Dutch Company –Unilever. Both
Unilever and HUL have established themselves well in the Fast Moving Consumer Goods
(FMCG) category. In India, the company offers many households brands like, Dove, Lifebuoy,
Lipton, Lux, Pepsodent, Ponds, Rexona, Sunsilk, Surf, Vaseline etc. Some of its efforts were
also rewarded when four of HUL brands found place in the ‘Top 10 brands’ list for the year
2008 published in The Economic Times.

In this competitive world, every person has to be perfect, in the same manner, company which is
an artificially person also has to be perfect in all sense like increasing its profitability, good
quality and satisfactory goods and services in order to maintain their good will which relies upon
the quality of goods and services provided to consumer.

After analyzing the market we have found out that there is huge market opportunity in water
purifier. Due to low price and different variety there is more chance that pureit can become the
market leader successfully. The water purifier market is growing by 25-28% annual. If we talk
about local competition, it is very less. The local players get the help by the government also
where the government has distributed free water purifier to households and started a project to
provide water supply to those households. There is huge competition from outside because many
multinational firms entered in this field to capture the market share in which Eureka Forbes is on
the top.

In marketing mix if we talk about segmentation, we can segment our market base on income,
geographic and physiographic bases. We can position ourselves in the market as new technology
low price and good quality. We can target the government where the government buy our
product and distributed to households and we can also target by income level.

HUL is also known for its strong distribution network in India. In order to further strengthen its
distribution, HUL launched a Project SAFE WATER ZONE in 2003 in Chennai. The idea
behind this project was to protect lives to water borne disease such as typhoid, jaundice and
diarrhea. In 2007 water division started national. Now it presents in all states and already
protected 15 million lives.

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Introduction
1. Introduction of subject:

➢ Marketing:
Marketing is the process by which companies create customer
interest in products or services. It generates the strategy that underlies sales techniques, business
communication, and business development. It is an integrated process through which companies
build strong customer and create value for their customers and for themselves.

➢ Personal Selling:
Personal selling is the process of selling goods and
services directly to customers. Personal selling is far more significant than other forms of
promotion as it allows the salesperson to describe the product in detail to the customer in person.
Personal selling is therefore a highly interactive tool of promotion and is best suited for products
or services that are complex in nature.
The effectiveness of communication between the salesperson and the customer during the sales
process decides the success of the sales call. As a part of the selling process, salespersons
perform two entirely different tasks - sales development and sales maintenance. These tasks
require different skill sets and different approaches, making it tough for salespeople. As most
companies require the same salesperson to carry out both tasks simultaneously, salespersons
often tend to ignore the more difficult of the two tasks, that is, sales development. Sales
management has to differentiate between these two selling jobs for the company to be
successful. The objectives of the sales force are of two kinds, qualitative and quantitative.

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Qualitative objectives relate to the methods of sales force operations while quantitative
objectives are the measurable actions of the sales force. The sales force strategies of a company
fall into two categories - strategies for gaining market access and account relationship strategies.
Market access can be gained by using distributors, telemarketing, independent sales agents, the
Internet, developing hybrid marketing systems and by establishing strategic alliances.

The theories of personal selling include the AIDAS theory, the buying formula theory of selling,
the behavioral equation theory and the right set of circumstances theory. AIDAS is an acronym
for Attention, Interest, Desire, Action and Satisfaction. This theory states that a prospective
customer's mind passes through these five stages before he makes the actual purchase. The
buying formula theory states that the purchase process is characterized by a psychological
sequence of events that take place in the prospect's mind.
The selling process consists of a series of seven steps - prospecting, pre-approach, approach,
sales presentation, handling objections/sales resistance, close and post sales follow-up.
Companies should devote significant attention to customer satisfaction, so that customers remain
loyal to the company for a long time. Some critical customer related issues in personal selling
include understanding types of customers through different styles of selling, finding customers,
researching customers, communicating effectively, providing customer service and finally,
creating customer satisfaction.

➢ Consumer Behavior:
Consumer Behavior is defined as “the decision making process and physical activity involved in
acquiring, evaluating using and disposing of goods & services”.

All of us are consumers. We consume many things such as of daily use, luxuries and etc. we buy
& consume these products according to our needs, preference & buying power, The buying
patterns of consumer depends on many factors such as perception, social & cultural background,

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age group, attitude, personality, motivation, beliefs, eagerness to buy the products etc and many
other factor which are both internal as well as external.
Here the marketing person role begins that is he tries to understand the needs of different
consumers & societies. Different societies include societies where there is a lot of affluence and
these societies can afford to buy in greater quantities & at shorter intervals. The other one is the
poor society were the consumers can barely meets the barest needs. The marketers having
understood the different needs & behavior of consumer which require an in-depth study of
external as well as internal factor, they formulate their plans for marketing.
Consumer Behavior in management is very young concept. During 1950’s marketing concept
was developed & various scholars & academicians concentrated on consumer behavior.
Marketing starts with consumer needs & ends with consumers it became a necessity to make a
study on buying patterns of consumer behavior.

Behavior of consumers exist from ancient days it was not a need to understand the behavior of
consumer but now-a-days as there are a number of substitutes available for a particular
customer, their needs, their behavior towards a particular product.
Consumer behavior is not just buying of goods & services but in fact the process starts much
before the goods have been bought. It starts with the need for the goods in minds of the
consumer & this lead to the searching of alternatives between the products, which can be
acquired with their relative advantage & disadvantage. It leads to internal & external research.
then follows the process of decision making for purchase and using the goods then there post
purchase behavior which is very important as only because of it a marketer can understand
whether his product has been a success or not.

The key to a company’s survival, profitability and growth in a highly competitive marketing
environment is its ability to identify and satisfy unfulfilled consumers needs better and sooner
than the competition. A successful marketer is market oriented which focuses on the needs of
buyer & production oriented marketer is one who focuses on needs of seller.

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Introduction to the Industry
➢ Water purifier sector:
Total market for water purifiers in India is valued at INR 9 bn in 2009 and is expected to grow
significantly in near future. Market comprises of three segments Ultra Violet (UV) based
Purifiers, Reverse Osmosis (RO) purifiers and storage / resin based purifiers.

The report provides a snapshot of the market. An overview gives a quick picture of the market
with estimated market size, growth rate, segment share, and revenue split between organised and
unorganised sectors. An analysis of drivers reveals that the scarcity of clean drinking water, low
penetration of water purifiers, increasing urbanization and rising water borne diseases is driving
growth in this sector. The key challenges identified include lack of standards and low awareness
levels.

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Future trends identified include tie-ups for enhancing distribution, increasing product Portfolio
and rural expansion. The competitive landscape identifies major players in this sector. The
report also provides details of the key developments in this space.

Approximately 80% of diseases in India are caused by water borne micro organisms. This is true
in rural as well as urban India. However, awareness of health risks linked to unsafe water is still
very low among the rural population. The few who treat water resort to boiling or use domestic
candle filters. In comparison, the urban Indian is definitely more health conscious and
understands the necessity of purifying water before it is fit for consumption.

Even so, it is estimated that roughly 7% of urban Indians use non manual water purifiers. More
Indians need to become aware of the importance of installing drinking water purifiers. There
remains a huge untapped market.

Though quite a few city dwellers still boil water, many are switching over to modern domestic
water purifiers. Electrical or chemical based home water purification systems are most suitable
for urban households because they require little or no manual operation and depending on the
technology can eliminate biological contaminants, chemical toxins and excessive salts. The main
contaminants are, however, micro organisms. UV purifiers and advanced chemical based
systems deal effectively with viruses, giardia and bacteria. This is one of the reasons why UV
and resin based purifiers are the most widely used water purifiers in India today.

It is estimated that around 80% of urban dwellers do not purify tap water. Many of them are
from the lower income strata and cannot afford UV or reverse osmosis water purification
systems.

They are the potential buyers of economical but effective chemical purifiers. This is the market
that Eureka Forbes and Hindustan Unilever are tapping aggressively. Chemical based purifiers,
Aqua sure and Pureit, together account for 20% of water purifiers sold. Both are becoming
increasingly popular because they are effective and affordable. The two brands are reported to
be growing at 100 percent per annum. Also, they do not run on electricity and are ideal for
locations where power supply is unpredictable. Neither do they demand continuous water
supply. Power and water are still scarce even in urban India.

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It is estimated that roughly two thirds of the existing water purification market belongs to UV
water purifiers and one third is shared between reverse osmosis purification systems and
chemical purifiers. In the UV purifier segment, Eureka Forbes’ Aquaguard is the clear market
leader with approximately 68% market share. Other brands include Philips’ Intelligent Water
Purifier and Kent’s UV purifier. The UV purifier market is estimated to be growing at a lower
rate than the chemical based segment.

Reverse osmosis purifiers, which are rather expensive and not the preferred option in many
areas, have a smaller share of the market when compared with UV purifiers and chemical based
Systems. In the reverse osmosis segment, Eureka Forbes is again the major player with 60%
share. A major portion of the remaining 40% belongs to Kent reverse osmosis Systems.

That the Indian market has tremendous potential is evident from the fact that global majors such
as Philips and Hindustan Lever have stepped in and are looking to increase their share of the
market. The three principal players today are Eureka Forbes, Hindustan Lever and Philips. In the
years to come, we are likely to see others entering the fray.

India with a population of 120 crores is potentially one of the largest consumer markets in the
world. With urbanization and development of economy tested and interests of people changes
according as the advanced nation.

Marketing of any product depends upon the consumer’s wants, preferences, and taste. In market
we’ll consider things very carefully because FMCG is the essential consumer need purchased by
individual to fulfill the need and for refreshment also.

There’re many ways to consumer awareness & sell water purifier products in the market like
dealers distribution, kiosk (canopy), d2d, cold call(referral, database..) etc.

Applying various tools and techniques every water purifier company like HUL, EURKA
FORBES, TATA, KENT etc. try to capture the market. To increase the sales of water purifier
products initially, the position of the company in the market is to offer various range of
products. Potentiality of given products of the company strike rate of the company products and
finally the current market share of the company products in the same product profile segment of

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the market must be known to us. So that we can design and implement the right marketing
strategy for increase sales and consumer awareness as well as know the water drinking Habits in
Kalyan.

➢ Market:
The market is dominated by the organized sector
Water purifiers generally use chemical purification, ultraviolet treatment and filtration,
or reverse osmosis techniques
The market has tremendous growth potential as only b% of urban Indians use non
manual purifiers

Drivers &
Challenges
Drivers:
– Scarcity of clean drinking water

– Low penetration of water purifiers

– Increasing urbanization

– Water borne diseases

➢ Challenges:
– Lack of standards

– Low awareness levels

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➢ Trends:
– Tie-ups for enhancing distribution

– Increasing product portfolio

– Rural expansion

➢ Competition:
– Company 1 is the dominant player in the market

– In the low end segment Company 2’s ABC leads on account of first
mover advantage

– Pricing is critical for success of a water purifier in the Indian market

– Water purifier companies have also been focusing on advertising and after
sales service as a part of their marketing strategies

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Introduction to the Company
In the summer of 1888, visitors to the Kolkata harbor noticed crates full of Sunlight soap bars,
embossed with the words "Made in England by Lever Brothers". With it began an era of
marketing branded Fast Moving Consumer Goods (FMCG).

HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as
Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co.
Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and has employee strength of
over 15,000 employees and contributes for indirect employment of over 52,000 people. The
company was renamed in June 2007 to “Hindustan Unilever Limited”.

In 2007, Hindustan Unilever was rated as the most respected company in India for the past 25
years by Business world, one of India’s leading business magazines. The rating was based on a
compilation of the magazine’s annual survey of India’s Most Reputed Companies over the past
25 years. HUL is the market leader in Indian consumer products with presence in over 20
consumer categories such as soaps, tea, detergents and shampoos amongst others with over 700
million Indian consumers using its products. It has over 35 brands. Sixteen of HUL’s brands
featured in the ACNielsen Brand Equity list of 100 Most Trusted Brands Annual Survey (2008).
According to Brand Equity, HUL has the largest number of brands in the Most Trusted Brands
List. It’s a company that has consistently had the largest number of brands in the Top 50 and in
the Top 10 (with 4 brands).

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HUL is a subsidiary of Unilever, one of the world’s leading suppliers of fast moving consumer
goods with strong local roots in more than 100 countries across the globe. Unilever has about
52% shareholding in HUL. Hindustan Unilever was recently rated among the top four
companies globally in the list of “Global Top Companies for Leaders” by a study sponsored by
Hewitt Associates, in partnership with Fortune magazine and the RBL Group. The company was
ranked number one in the Asia-Pacific region and in India.

Hindustan Unilever's distribution covers over 1 million retails outlets across India directly and
its products are available in over 6.3 million outlets in India, i.e., nearly 80% of the retail outlets
in India. It has 39 factories in the country.
HUL launched a slew of new business initiatives in the early part of 2000’s. Project Shakti was
started in 2001. It is a rural initiative that targets small villages populated by less than 5000
individuals. It is a unique win-win initiative that catalyses rural affluence even as it benefits
business. Currently, there are over 45,000 Shakti entrepreneurs covering over 100,000 villages
across 15 states and reaching to over 3 million homes.
The mission that inspires HUL's more than 15,000 employees, including over 1,400 managers, is
to “add vitality to life". The company meets every day 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 about 52 % of the equity. Hindustan
Unilever Network, Direct to home business was launched in 2003 and this was followed by the
launch of ‘Pureit’ water purifier in 2004.
In 2002, HUL made its foray into Ayurvedic health & beauty centre category with the Ayush
product range and Ayush Therapy Centres. Hindustan Unilever Network, Direct to home
business was launched in 2003 and this was followed by the launch of ‘Pureit’ water purifier in
2004.
SWOT Analysis

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➢ STRENGTH

HUL enjoys a formidable distribution network covering over 3400 distributors and 16 million
outlets. The new sales organization named 'One HUL' brings "Household and Personal
Care" and foods distribution networks together, thereby aligning all the units towards the
common goal of achieving success. HUL has been continuously able to grow at a rate more than
growth rate for FMCG Sector, thereby reaffirming its future stronghold in Indian market.

➢ Weaknesses

HUL market dominance, originating from its extensive reach and strong brand presence,
allowed it to raise the prices even as raw materials were getting cheaper. Hence, though the
volumes decreased, the margins grew, and company was able to earn more profits. But higher
margins attracted competition in areas of operations. HUL strategy remained focused on creating
power brands and earning higher margins. It was not left with any other option but to try cutting
down the costs in order to protect volumes, if not increase it.

➢ Opportunities
India is one of the world's largest producers of FMCG goods but its exports are miniscule as
compared to production. Though Indian Cos. has been going global, their focus is more towards
Asian countries because of the similar preferences. HUL is one of the top companies exporting
FMCG goods from India. An expansion of horizons towards more and more countries would
help HUL grow its consumer base and henceforth the revenues. Penetration levels for some

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major categories like skin-cream (22%), shampoo (38%), toothpaste (48%) and processed foods,
continue to remain low offerings but great growth opportunities products

➢ Threats
ITC has reduced its dependence on the cigarettes business - Contribution of the core business in
revenues has come down from 87% in FY99 to 70% in FY’05. Over a period of five years, ITC
has extended its presence into areas like foods, retailing, hotels, greetings, agriculture, paper,
etc. These are businesses that can give it growth impetus in the long run. With ITC gaining
momentum in each of these businesses, it is turning into a consumer monolith, and hence, the
greatest threat to HUL's Business.

Introduction of project

A. Competitor:
PRICE STRATEGY OF WATER PURIFIER:

• Penetration strategy
• Product price range started for 1000 – 5200
• Very Low cost of maintenance and consumable
• Low cost for product
• Best price for other than competitor
• Attractive discount on replacement of device for customer

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• No credit terms
• Attractive allowance for dealers

PROMOTION / MARKETING COMMUNICATION STRATEGY OF


WATER PURIFIER:

• Activated subscription immediately


• Fastly installation of products
• Properly repair services
• Free Services during life time
• Commercial TV advertisement
• Advertisement in news paper ,Broacher
• Sales force (8000+ across country)
• Marketing surveys through:-
Kiosk
Demonstration
Cold call

4 P’S of Marketing Strategies

Product:-
The product is the physical product or service offered to the costumer. In the
case of physical product, it also refers to any services or conveniences that are part of the
offering. Product decision includes aspects such as functions, appearance, packaging, service,
warranty, etc.

Price:-

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Pricing decision should take into account profit margins and the probable pricing
response of competitors. Pricing includes not only the list price, but also discounts, financing,
and other options such as leasing.

Place:-
Place decisions are those associated with channels of distribution that serve as the
means for getting the product to the target customers. The distribution system performs
transactional, logistical, and facilitating functions.

Promotion:-
Promotion decisions are those related to communicating and selling to potential
consumers. Since these costs can be large in proportion to the product price, a break-even
analysis should be performed when making promotion decision. It is useful to know the value
off a customer in order to determine whether addition customers are worth the cost of acquiring
them.

• How a pureit is better than other method water


purifier:

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Key Features PUREIT BOILING LEADING UV CANDLE
PROCESS INLINE FILTER
PURIFIER
Kills/Removes Yes 30-40 min Yes No
harmful Viruses**
Kills/Removes Yes 30-40 min yes No
harmful Bacteria**
Kills/Removes Yes 30-40 min Yes No
harmful parasites
(causes
amoebiasis,diarrhea,
etc)**
End-of-life indicator Yes No Yes No
Auto switch-off yes No yes no

Great taste yes No Yes No


Improves clarity Yes No yes No
Removes odour yes No Yes No

Doesn’t need Yes No Yes Yes


expensive gas
Doesn’t need Yes Yes No Yes
expensive electricity
Doesn’t need yes Yes No yes
continuous tap water
Doesn’t need Yes Yes N0 Yes
plumbing
Doesn’t need an Yes yes No yes
expensive
Maintenance contract
Low initial cost Yes Yes No Yes
Low on-going cost yes No No Yes

A. Product Information

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Pureit – a water purifier designed and developed to provide “as safe as Boiled water”

• Performance:
Pureit removes visible dirt, kills all viruses and bacteria, removes parasites
and pesticide impurities giving you water that is ‘as safes as boiled water’

• Additional Features:

a) Great sensorial – clear, odour-free water: removes organics, pesticides , suspended


matter(turbidity)
b) Any time, any where performance: works
-without electricity
-without piped water
c) Convenience – No hassles of boiling, No maintenance costs like plumbing
d) Cost – Rs.1/- for every 4 liters of water

• Technology:

I. Chlorination of water is a known fact & is used as a world wide phenomenon by


municipal corporations for supply of potable water.
II. It kills all bacteria and viruses in water.
III. However chlorine added in water by these corporation is not done scientifically
especially in third world countries like. Hence the amount of chlorination may be more
or less depending on the quantity of water, Thus again making this water unsafe for
human consumption.

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Pureit is the world’s most advanced in-home water
purifier. Pureit, a breakthrough offering of
Hindustan Unilever (HUL), provides complete
protection from all water-borne diseases, unmatched
convenience and affordability.
Machine Features Pureit’s unique Germkill Battery technology kills all
harmful viruses and bacteria and removes parasites
Type of water purifier and pesticide impurities, giving you water that is "as
Storage
Storage capacity(Liters) safe as boiled water". It assures your family 100%
9
Method of purification protection from all water-borne diseases like
Purification stages jaundice, diarrhea, typhoid and cholera. What’s
4
more, it doesn’t need gas, electricity or continuous
Pre-filter purification tap water supply.
Yes
Silver-impregnated activated carbon yes
1. Micro-fiber Mesh- Removes visible dirt
purification
Reverse Osmosis 2. Compact Carbon Trap - removes remaining
no
Exteriors dirt, harmful parasites & pesticide impurities
Material of Body 3. Germkill
Food gradeProcessor – uses 'programmed
ABS plastic
Exterior Features chlorine release chlorine technology' and its stored
Colours Available Germkill
White process
and targets and kills harmful virus and
Maroon
Power Requirement bacteria
no
4. Polisher – removes residual chlorine and all
Dimensions disinfectant by-products, giving clear odourless and
Width (mm) 290
great tasting water
Dimensions
Height(mm) 5. Battery Life Indicator - Ensures total safety
610
Weight(kgs) because when the Germkill power is exhausted, the
6.1
indicator turns red, warning you to replace the
Yes
After Sales service battery
Warranty period (years) 6 moths Auto-Switch off - In case, the battery is
Advanced
not changed when it turns fully red, as an additional
assurance of safety, the advanced Auto-Switch off
will automatically switch-off the flow of water.
• Performance testing:

Leading scientific institutions

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✔ Central food technology research institute.
✔ National institute of cholera and enteric Diseases
✔ Indian Public Health Association
✔ Institution of Public Health Engineers

Leading Medical Institutions:

✔ King institute of preventive Medicine


✔ Sundaram Medical Foundation
✔ Apollo Hospitals
✔ SRL Ranbaxy Clinical Reference laboratories

Leading international institutions

✔ London school of Hygiene and Medicine UK


✔ Scottish parasite Diagnostic Laboratory, Glassgow, UK

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O bjectives

To do an in-depth survey of water purifiers available in the market and to arm


you with the information with which you can select the best water purifier device suitable for
your home. And its Benefits are logical reasons to allow the customer to justify to himself, his
own desire to buy.

This will help us to know the market tends demand and consumption patterns future prospectus
in term of potential growth consumer test and buying behavior for the HUL product water
purifier and other aspects related to channels and networks i.e. distribution. At the same time
some bottlenecks and loopholes in the entire process could also be taken into consideration for
their solution as well as betterments. In short following few aspects could be taken care of
through this study:-

 To study distribution network of HUL.


 To identify the attributes those compel the dealers to select the product.
 To study about the relationship and association of the household with the company.
 To identify the dealer’s response towards brands they are dealing.
 To know about the credit policy of the company (motivational tools)
 Popularity of company product among customers.
 Customer’s opinion towards packaging.
 To know about the awareness of drinking water used by various households.

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Methodology
Usually it is said that if marketing would be a train, then market research would be the
locomotive. In other words, market research should ideally be the starting point of any
marketing exercise. Conducting any marketing exercise – be it related to pricing, promotion or
distribution of a product or service, without researching the potential market is as sensible as
setting out to sell sand in the Sahara desert.

Market research can help create a business plan, launch a new product or service, fine tune
existing products and services, expand into new markets etc. It can be used to determine which
portion of the population will purchase the product/service, based on variables like age, gender,
location and income level.

• RESEARCH DESIGN:
This is the comprehensive master plan of the study undertaking given the general statement of
the method used and procedure followed. It help the researcher to insure that the requisite data,
in accordance with the topics of the study of all the aspects of corporate management, it will also
be consist of detail understanding all the competitive brands of HUL, and an Questionnaire
study will be conducted of own walk in different companies study will be conducted of own
walk in different companies with the reference of HUL was descriptive in nature. It is a kind of
study, which is undertaken when the researcher is interested in knowing to which water purifier
is operating and tries to take an appointment so that I can explain about my product.

We are used Descriptive Research which includes survey and fact-finding enquiries of different
kinds. The main characteristics of this method are that the researchers have no control over the
variables; he can only report what has happened or what is happening. The major purpose of
descriptive research is description of the state of affairs as exists as present.

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• Descriptive research design: -
Alone with some exploratory research was applied
which descriptive the state of affairs as they subsists. Descriptive research was used in the study
of marketing strategies for the sale of company’s product also studying about the parameters
which affect the competitiveness of the product.

Sampling Design &Sample Size


Sampling is that part of statistical practice concerned with the selection of an unbiased or
random subset of individual observations within a population of individuals intended to yield
some knowledge about the population of concern, especially for the purposes of making
predictions based on statistical inference. Sampling is an important aspect of data collection.
Researchers rarely survey the entire population for two reasons first one is when the cost is too
high, and second is when the population is dynamic in that the individuals making up the
population may change over time. The three main advantages of sampling are that the cost is
lower, data collection is faster, and since the data set is smaller it is possible to ensure
homogeneity and to improve the accuracy and quality of the data.

• Sampling Technique:
For my survey we are used Cluster Sampling technique. We
are selected a sample of more than 1500 people around the area and interviewed them according
to the questionnaire. In the survey we are tried to find out their preferences & tastes, their
purchasing habit, are they brand loyal or they consider their friends advice or some reference
group during purchasing. We are also tried to find out that are they satisfied with the quality or
present stature of product, did they want any change in the existing product.

• Accidental sampling:
Accidental sampling is a type of non probability sampling
which involves the sample being drawn from that part of the population which is close to hand.
That is, a sample population selected because it is readily available and convenient. The

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researcher using such a sample cannot scientifically make generalizations about the total
population from this sample because it would not be representative enough. For example, if the
interviewer was to conduct such a survey at a shopping center early in the morning on a given
day, the people that he/she could interview would be limited to those given there at that given
time, which would not represent the views of other members of society in such an area, if the
survey was to be conducted at different times of day and several times per week. This type of
sampling is most useful for pilot testing.

➢ Collection of data:

• Primary source:
Sources from where first hand information is
gathered directly are called primary data.

1. Personal interviews:
The interviewer asks questions generally in face to face
regarding product information. If customer does not know all information about product so we
give detail knowledge about product to customer.

2. Questionnaire method:
We are going to door to door and
asking sum specific question regarding HUL product and water purifier industry and we try to
generated need in customer to buy our product.

3. Telephonic interview:
So, with regards to my study to collect the primary data we
went through the company records we call to past customer those who are bye already pure it
product. If any reference he want to give we collected them and then call to that customer but

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when it is not possible to contact the respondent directly, then interview is conducted through
telephone.

➢ Data Collection Method:


The following method is widely used for collecting data:-

Questionnaire:
Questionnaire methods were mainly used for the undertaken topic.
Survey method was mostly used for collecting data through Questionnaire study with the
helped off the framed questionnaire, regarding survey a detailed study are conducted which
is consists of areas covering of all the aspects of corporate sector, this survey is also includes
the detail understanding of all the competitive brands of HUL through the framed
questionnaire to understand the physiology of the competitors, need of the customer,
problem facing by the customer etc.

Panel method :

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In this method, data is collected from the same sample
respondents at the some interval either by mail or by personal interview. This is used for
studies on:

1. Expenditure pattern.

2. Consumer behavior.

3. Effectiveness of advertising.

4. Voting behavior, etc.

Limitations
Although all the efforts have been made to make the results as accurate as possible, yet the
survey suffers from some limitations. Following are some of the limitations of the study. The
purpose of mentioning these limitations is not to dilute the quality of results rather to enable the
reader to judge the validity of the result regarding the study. Following are some limitation of
the study.

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➢ Lack of funds was the major abstraction to limit my survey to a small sample of
respondents.
➢ Duration of study is also limited further intensive study field wise.
➢ Many respondents were not interested to give the required time for the questionnaire.

➢ There was only some certain hours in a day in the idle hours in which the
respondents was ready to talk.
➢ Last but not the least “weather” was the most important constraint because it changes
continuously. However, the limitation has been judiciously counter balanced as far as
practicable. However the research of this type cannot be absolutely fixed in a
perpetual framework of time but spite of some inherent limitations, think that the
very report may be useful for the particular organization.

Analysis & Findings

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➢ Do you use any kind of water purifier at home?
• Yes
• No

Interpretation-

In the survey 60% people are you using water purification method and 40%
People are not using any kind of purification method.

➢ If yes, which purifier do you use?


• Aqua guard or Aqua sure
• Pureit
• Kent water purifier
• Usha Brita
• Philips
• Other

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Interpretation-
After a survey of 1500 house holds, we are found that-
➢ Pureit is the market leader in kalyan.
➢ The sale of HUL water purifier is more then other purifier companies.
➢ Aquaguard is the closest competitor of Pureit.
Due to entrance of new companies like Kent, Philips and usha, HUL is facing a tough
competition.

➢ Comment on the price of your water purifier?


○ Affordable
○ High
○ Should be Revised

Interpretation-

After a survey, we are found that price of water purifier is-

• Affordable for 53% people,


• The price is high for 30% people.
• The water purifier Companies should reduce there prices but does not reduce
quality of the product in order to increase its market share

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➢ Do you know that boiled water is not necessarily safe water?
○ Yes
○ No

Interpretation –
After a survey of about 1500 house holds, we are found that-
➢ 62% says that boil water is safe.
➢ 38% of the people have a opinion that boil water is safe only for few hours
➢ This shows that even after boiling water isnot safe for drinking purpose.

Have you recently come across any kind of marketing activities for purifiers?
○ Kiosk
○ Demonstration
○ Direct Marketing

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○ T V Commercial

Interpretation- After a survey we are found that TV advertisement play main role in
making awareness. 70% People are coming for product knowledge through TV Commercial,
15% people come through direct marketing, 10 % People come through Kiosk and 5%
people are came demonstration marketing activity.

➢ Do you get any type of after sale services from the Company?
○ Yes
○ No
○ Exceptional

Interpretation-after a survey, we are found that 52% water purifier not dependable on
company to timely service..
➢ People are in need those companies who can provide them suggestions and can help in
solving there problems regarding the product they are using.

➢ Criteria considered for Purchase?

1. Brand name

2. Technology

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3. Aesthetics

4. Price

Interpretation- In the survey of 1500 people randomly, I found that 30 people gives
importance to price and then after they consider the Brand name.
➢ The technology used must also be considered by the Companies in order to increase
there profits.

➢ Where you did heard about the product?

○ TV commercial

○ Newspaper print ads

○ In shop branding

○ Friend’s references

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Interpretation: from that above graph it is clear that most portion of the households purchase
products of Companies by watching TV commercial advertisements. The Companies should be
more focused on TV commercial Advertisements.

➢ Where do you prefer to buy a water purifier from?


○ Retail Outlets
○ Franchisee dealers
○ Direct Marketing

Interpretation- in the survey we are found that people like to purchase water purifier by direct
marketing. In the survey we are found that 45% people preferred direct marketing, 35% people
preferred Retails outlets and 20% people preferred Franchisee to purchase the water purifier.

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1. Does the water purifier ensure that water is not wasted while purifying?
• Yes
• No
• Do not know

When we ask to people its your purifier is wastage water the answer is given yes is 20% and
70% of the people said no but 10% of the people said we doesn’t know about our purifier is
wasted the water or not waste the water.

1. Does it remove pesticide impurities from drinking water?


• Yes
• No
• Do not know
Wastage

1. Does your water purifier consume more electricity?


• Yes
• No.
• Do not know

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1. How frequently do you need to change the candle in your purifier?
• 3 months
• 6 months
• Once in a year
• More than a year

1. Does the water after purification taste good, is odorless, and looks clear?
• Yes
• No
• Do not know

1. Is your water purifier backed by dependable after sales service?


• Yes
• No
• Exceptional

1. Does your water purifier comes with warranty if yes how much?
• One year
• Six month
• Three month

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• More than above

1. Have you recently come across any kind of marketing activities for purifiers?
• Road shows
• Visual merchandising
• Direct marketing
• TV Commercial

Those are said no we are not using any purifier we are trying to ask some specific
question like you see any tv commercial advertisement so almost 70% people are
said yes and when we ask you see any direct marking of any kind of purifier like
any kiosk so 15% people are said yes and if we ask you see any road shows of
purifier than only 5% people said yes and when we ask customer you see any visual
merchandising only 10% people are said yes we see visual merchandising.

1. Where do you prefer to buy a water purifier from?


• Retail Outlets
• Franchisee dealers
• Demo at your door step
• Direct marketing

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1. While buying any water purifier what comes to your mind first?
• Price
• Health & safety
• Both

For customer we ask when you buying any water purifier what comes to
your mind first for buying water purifier than 25% of people are said for us
price is more important. They wanted purifier but on low price. And 55%
people are said health and safety are more preference comparing to price.
And 20% people are said we are looking best product on best feature with
best price.

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Conclusion
The project on direct marketing gives the deep understanding of all the aspect of direct
marketing. Which cover all the key area for selling’s. We are trying level best to cover all the
aspect of direct marketing of HUL water purifier pure it along with the competitor’s analysis of
the HUL product. In spite of some limitations, the project is completed covering the detail study
of direct marketing.

Really, this project was like a challenge for me, we are accepted and completed with the best of
our efforts, knowledge and skills.

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Findings

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 Approximately 40% market share is left, in and around kalyan, where no water purifier
machine is installed and which shows substantial sale of machine could be made in this
area by persuading the probable customers.

 HUL should motivate its staff members to be more committed and loyal to the company
so that they can do value addition to HUL by serving better to the customer. Motivation
for store staff members include launching of incentive schemes like providing
commissions and awards like for the best who achieve the maximum sales target in the
year.

 HUL should promote segmental targeting i.e. it should come up with schemes for
focused target segment.

Recommendations
As per the survey done following were the findings and recommendations of the Survey:

✔ Price structure should be revised for 2000/- Rs, product.

✔ After sale service is something which company should pay more attention on it.
✔ All models not available for display in retail outlets and also broachers should be made
available.

✔ TV advertisements can be renewed explaining the product feature and aggressive


marketing will help the company.
✔ Sales person at the field or retails counters it should have proper knowledge about the all
type of product.
✔ Should focus more on brand awareness.

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ANNEXURES:

Questionnaire
1. Do you use any kind of water purifier at home?
• Yes
• No

1. If yes, which purifier do you use?


• Aquaguard or Auasuere
• Pureit
• Kent water purifier
• Whirlpool pura fresh
• Other

1. Does the water purifier ensure that water is not wasted while purifying?
• Yes
• No
• Do not know

1. Does it remove pesticide impurities from drinking water?


• Yes
• No
• Do not know

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1. Does your water purifier consume more electricity?
• yes
• no
• Do not know

1. How frequently do you need to change the candle in you purifier?


• 3 months
• 6 months

• Once in a year
• More than a year

1. Does your purifier provide facility to drain out stagnant water?


• Yes
• No
• Cannot say

1. Does the water after purification taste good, is odorless, and looks clear?
• Yes
• No
• Do not know

1. What technique does your water purifier uses?


• Ultra violet
• Reverse osmosis
• E-boiling

1. What price do you think is appropriate for a water purifier?


----------------------------------------------------------------------------------------
2. Is your water purifier backed by dependable after sales service?
• Yes

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• No
• Exceptional

1. Does your water purifier comes with warranty if yes how much?
• One year
• Six month
• Three month
• More than above

1. Have you recently come across any kind of marketing activities for purifiers?
• Road shows
• Visual merchandising
• Others

1. Where do you prefer to buy a water purifier from?


• Retail Outlets
• Franchisee dealers
• Demo at your doorstep

1. While buying any water purifier what comes to your mind first?
• Price
• Health & safety
• Both

1. Have you recently come across any ad campaigns for water purifiers, if yes
which one and what did you really liked in the ad?

Name: age: Sex: M/F

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Address:

Bibliography
 Concerned Books
1) Marketing management ---- Philip kotler

2) Marketing Research -------- C. R. Kothari

 Magazines:
4Ps

 Newspapers:
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Economics times

 Websites:
www.hul.com

www.google.com

www.yahoo.com

www.pureitwater.com

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