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A RESEARCH REPORT ON PROMOTIONAL STRATEGY OF HUL Research report submitted in the fulfillment of

A RESEARCH REPORT ON PROMOTIONAL STRATEGY OF HUL

Research report submitted in the fulfillment of requirements for the Master of business Administration (II SEM)

Submitted To:

MISS P.VAKULA

Submitted By:

RAJEEV KUMAR MBA (II SEM)

DEPARTMENT OF MANAGEMENT STUDIES

CHOUKSEY ENGINEERING COLLEGE, BILASPUR

1

CERTIFICATE

This is to certify that RAJEEV JHA student of second semester, Master of Business administration (MBA) has completed the project report work entitled PROMOTIONAL STRATEGY OF HINDUSTAN UNILEVER LTD.” based on syllabus and has submitted a satisfactory account of his work in this report.

Lecturer MISS. RUCHI TIWARI MDITM,INDORE

2

ACKNOWLEDGEMENT

The research on

has been given to me as part of the curriculum in

the completion of 2-Years Master of business Administration.

I have tried my best to present this information as clearly as possible using basic terms that I hope will be comprehended by the widest spectrum of researchers, analysts and students for further studies.

I have completed this project under the able guidance and supervision of Miss NAMRATA TRIPATHI. I will be failed in my duty if I do not acknowledge the esteemed scholarly guidance, assistance and knowledge I have received from them towards fruitful and timely completion of this work.

UNILEVER LTD

PROMOTIONAL

STRATEGY

OF

HINDUSTAN

We also thanks NIRMA DISTIBUTER & DELER‟S, INDORE who believed in us and by providing ALL valuable information and data that helped us in understanding the problem areas of their organization and hence developing the application as per their requirements.

FROM-

ANSHUL TIWARI

3

INDEX

Sr. No.

Contents

Page

No.

1.

EXECUTIVE SUMMARY

 

2.

INTRODUCTION

 

3.

OBJECTIVE

 

4.

LITERATURE REVIEW (COMPANY PROFILE)

 

5.

DATA ANALYSIS

 

6.

DATA INTERPRETATION

 

7.

HYPOTHESIS

 

8.

FINDINGS

 

9.

RECOMMENDATIONS

 

10.

CONCLUSION

 

11.

BIBLIOGRAPHY

 

12.

ANNEXURE

 

4

EXECUTIVE SUMMARY

Hindustan Unilever Limited (HUL) is India's largest fast moving consumer

goods company, with leadership in Home & Personal Care Products and Foods

& Beverages. HUL's brands, spread across 20 distinct consumer categories,

touch the lives of two out of three Indians. They endow the company with a

scale of combined volumes of about 4 million tonnes and sales of nearly

Rs.13,718 crores. The mission that inspires HUL's over 15,000 employees is to

"add vitality to life". With 35 Power Brands, HUL meets everyday needs for

nutrition, hygiene, and personal care with brands that help people feel good,

look good and get more out of life. It is a mission HUL shares with its parent

company,

Unilever, which holds 51.55% of the equity.

The rest

of the

shareholding is distributed among 360,675 individual shareholders and financial

institutions. A Fortune 500 transnational, Unilever sells Foods and Home and

Personal Care brands in about 100 countries worldwide.

HUL is also one of the country's largest exporters; it has been recognised as a

Golden Super Star Trading House by the Government of India.

Over time HUL has developed into a viable & competitive sourcing base for

Unilever world wide in Home and Personal Care & Foods & Beverages

category of products. HUL is also a global marketing arm for select licensed

5

Unilever brands and also works on building categories with core country

advantage such as branded basmati rice.

HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely,

Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan,

Knorr-Annapurna, Kwality Wall's are household names across the country

and span many categories - soaps, detergents, personal products, tea, coffee,

branded staples, ice cream and culinary products. They are manufactured over

40 factories across India. The operations involve over 2,000 suppliers and

associates. HUL's distribution network, comprising about 4,000 redistribution

stockists,

covering

6.3

million

retail

outlets

reaching

the

entire

urban

population, and about 250 million rural consumers.

HUL believes that an organisation's worth is also in the service it renders to the

community.

HUL

is

focusing

on

health

&

hygiene

education,

women

empowerment, and water management. It is also involved in education and

rehabilitation of special or underprivileged children, care for the destitute and

HIV-positive, and rural development. HUL has also responded in case of

national

calamities

/

adversities

and

contributes

through

various

welfare

measures, most recent being the village built by HUL in earthquake affected

Gujarat, and relief & rehabilitation after the Tsunami caused devastation in

South India.

6

In 2001, the company embarked on an ambitious programme, Shakti. Through

Shakti, HUL is creating micro-enterprise opportunities for rural women, thereby

improving their livelihood and the standard of living in rural communities.

Shakti also includes health and hygiene education through the Shakti Vani

Programme, and creating access to relevant information through the iShakti

community portal. HUL is also running a rural health programme Lifebuoy

Swasthya Chetana. If Hindustan Unilever straddles the Indian corporate world,

it is because of being single-minded in identifying itself with Indian aspirations

and needs in every walk of life.

7

HISTORY

YEAR

MILESTONES

1888

Sunlight soap introduced in India.

 

Lifebuoy soap launched; Lever Brothers appoints agents in Mumbai, Chennai, Kolkata, and Karachi.

1895

 

1902

Pears soap introduced in India.

1903

Brooke Bond Red Label tea launched.

1905

Lux flakes introduced.

1913

Vim scouring powder introduced.

1914

Vinolia soap launched in India.

 

Vanaspati introduced by Dutch margarine manufacturers like Van den Berghs, Jurgens, Verschure Creameries, and Hartogs.

1918

 

1922

Rinso soap powder introduced.

1924

Gibbs dental preparations launched.

1925

Lever Brothers gets full control of North West Soap Company.

1926

Hartogs registers Dalda Trademark.

 

Unilever is formed on January 1 through merger of Lever Brothers and Margarine Unie.

1930

 
 

Hindustan Vanaspati Manufacturing Company registered on November 27; Sewri factory site bought.

1931

 

1932

Vanaspati manufacture starts at Sewri.

 

Application made for setting up soap factory next to the Vanaspati factory at Sewri; Lever Brothers India Limited incorporated on October 17.

1933

 
 

Soap manufacture begins at Sewri factory in October; North West Soap

1934

Company's Garden Reach Factory, Kolkata rented and expanded to produce Lever brands.

 

1935

United Traders incorporated on May 11 to market Personal Products.

1937

 

Mr. Prakash Tandon, one of the first Indian covenanted managers, joins HVM.

8

 

Garden Reach Factory purchased outright; concentration on building up Dalda Vanaspati as a brand.

1939

 

Agencies in Mumbai, Chennai, Kolkata and Karachi taken over; company acquires own sales force.

1941

 

Unilever takes firm decision to "train Indians to take over junior and senior management positions instead of Europeans".

1942

 

1943

Personal Products manufacture begins in India at Garden Reach Factory.

 

Reorganisation of the three companies with common management but separate marketing operations.

1944

 

1947

Pond's Cold Cream launched.

 

Mr. Prakash Tandon becomes first Indian Director. Shamnagar, Tiruchy, and Ghaziabad Vanaspati factories bought.

1951

 

1955

65% of managers are Indians.

 

Three companies merge to form Hindustan Unilever Limited, with 10% Indian equity participation.

1956

 

Unilever Special Committee approves research activity by Hindustan Unilever.

1957

 

1958

Research Unit starts functioning at Mumbai Factory.

1959

Surf launched.

 

Mr. Prakash Tandon takes over as the first Indian Chairman; 191 of the 205 managers are Indians.

1961

 

1962

Formal Exports Department starts.

1963

Head Office building at Backbay Reclamation, Mumbai, opened.

 

Etah dairy set up, Anik ghee launched; Animal feeds plant at Ghaziabad; Sunsilk shampoo launched.

1964

 

1965

Signal toothpaste launched; Indian shareholding increases to 14%.

 

Lever's baby food, more new foods introduced; Nickel catalyst production

1966

begins; Indian shareholding increases to 15%. Statutory price control on Vanaspati; Taj Mahal tea launched.

 

1967

Hindustan Unilever Research Centre, opens in Mumbai.

 

Mr. V. G. Rajadhyaksha takes over as Chairman from Mr. Prakash Tandon;

1968

Fine Chemicals Unit commissioned at Andheri; informal price control on soap begins.

 

9

 

Rin bar launched; Fine Chemicals Unit starts production; Bru coffee launched

1969

 

Mr. V. G. Rajadhyaksha presents plan for diversification into chemicals to Unilever Special Committee - plan approved; Clinic shampoo launched.

1971

 

1973

Mr. T. Thomas takes over as Chairman from Mr. V. G. Rajadhyaksha.

 

Pilot plant for industrial chemicals at Taloja; informal price control on soaps withdrawn; Liril marketed.

1974

 

Ten-year modernisation plan for soaps and detergent plants; Jammu project

1975

work begins; statutory price control on Vanaspati and baby foods withdrawn; Close-up toothpaste launched.

 

Construction work of Haldia chemicals complex begins; Taloja chemicals unit begins functioning.

1976

 

Jammu synthetic Detergents plant inaugurated; Indian shareholding increases to 18.57%.

1977

 

1978

Indian shareholding increases to 34%; Fair & Lovely skin cream launched.

1979

Sodium Tripolyphospate plant at Haldia commissioned.

 

Dr. A. S. Ganguly takes over as Chairman from Mr. T. Thomas; Unilever shareholding in the company comes down to 51%.

1980

 

1982

Government allows 51% Unilever shareholding.

1984

Foods, Animal Feeds businesses transferred to Lipton.

 

Agri-products unit at Hyderabad starts functioning - first range of hybrid

1986

seeds comes out; Khamgaon Soaps unit and Yavatmal Personal Products unit start production.

 

1988

Launch of Lipton Taaza tea.

1990

Mr. S. M. Datta takes over as Chairman from Dr. A. S. Ganguly.

1991

Surf Ultra detergent launched.

1992

HUL recognised by Government of India as Star Trading House in Exports.

 

HUL's largest competitor, Tata Oil Mills Company (TOMCO), merges with the company with effect from April 1, 1993, the biggest such in Indian industry till that time. Merger ultimately accomplished in December 1994; Launch of Vim bar; Kissan acquired from the UB Group.

1993

 

HUL forms Unilever Nepal Limited, HUL and US-based Kimberley-Clark

1994

Corporation form 50:50 joint venture - Kimberley-Clark Lever Ltd. - to market Huggies diapers and Kotex feminine care products. Factory set up at

 

10

 

Pune in 1995; HUL acquires Kwality and Milkfood 100% brandnames and distribution assets. HUL introduces Wall's.

HUL and Indian cosmetics major, Lakme Ltd., form 50:50 joint venture

1995

Lakme Lever Ltd.; HUL enters branded staples business with salt; HUL recognised as Super Star Trading House.

 

Mr. K. B. Dadiseth takes over as Chairman from Mr. S. M. Datta; Merger of

1996

Group company, Brooke Bond Lipton India Limited, with HUL, with effect from January 1; HUL introduces branded atta; Surf Excel launched.

 

Unilever sets up International Research Laboratory in Bangalore; new Regional Innovation Centres also come up.

1997

 

Group company, Pond's India Ltd., merges with HUL with effect from

1998

January 1, 1998. HUL acquires Lakme brand, factories and Lakme Ltd.'s 50% equity in Lakme Lever Ltd.

 

Mr. M. S. Banga takes over as Chairman from Mr. K. B. Dadiseth, who joins the Unilever Board; HUL acquires 74% stake in Modern Food Industries Ltd., the first public sector company to be disinvested by the Government of India.

2000

 

HUL enters Ayurvedic health & beauty centre category with the Ayush range and Ayush Therapy Centres.

2002

 

2003

Launch of Hindustan Lever Network; acquisition of the Amalgam Group

2005

Launch of "Pureit" water purifiers

HLL's brands, spread across 20 distinct consumer categories, touch the lives of two out of three Indians. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of Rs.10,000 crores. The leading business magazine, Forbes Global, has rated Hindustan Lever as the best consumer household products company. Far Eastern Economic Review has rated HLL as India‟s most respected company. Asiamoney has rated HLL as one of India‟s best managed companies. Leading national publications, like The Economic Times, Business World, and Business Today have also rated HLL as one of India‟s most respected companies and the number one in Market Value Added and EVA. The vision that inspires HLL's 32,400 employees (40,000 including Group Companies), including about 1,425 managers, is to “meet everyday needs of people everywhere - to anticipate the aspirations of our consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of life.”

11

This objective is achieved through the brands that the company markets. It is an ethos HLL shares with its parent company, Unilever, which holds 51.55% of the equity. A Fortune 500 transnational, Unilever sells Foods and Home and Personal Care brands through 300 subsidiary companies in about 100 countries worldwide with products on sale in a further 50. Business nature HLL is India's largest marketer of Soaps, Detergents and Home Care products. It has the country‟s largest Personal Products business, leading in Shampoos, Skin Care Products, Colour Cosmetics, and Deodorants. HLL is also the market leader in Tea, Processed Coffee, branded Wheat Flour, Tomato Products, Ice cream, Soups, Jams and Squashes. HLL is also one of the country's biggest exporters and has been recognised as a Golden Super Star Trading House by the Government of India; it is a net foreign exchange earner. HLL is also driving exports in chosen areas where India has a competitive advantage Marine Products, Basmati Rice, Castor Oil and its Derivatives. It is India's largest exporter of Marine Products, and one of the largest global players in castor. Market leading brands HLL‟s brands have become household names. The company‟s strategy is to concentrate its resources on 30 national power brands, and 10 other brands which are strong in certain regions. The top five brands together account for sales of over Rs.3000 crores. Each of these mega brands has a potential scale of Rs.1000 crores in the foreseeable future. Some of the big brands in Soaps and Detergents are Lifebuoy, Lux, Liril, Hamam, Breeze, Dove, (all soaps), Surf Excel, Surf, Rin, Wheel (the number one detergent brand in India, and HLL's largest), 501, Sunlight (all detergents). HLL also markets the Vim and Domex range of Home Care Products.

In the Personal Products business, HLL's Hair Care franchises are Clinic, Sunsilk and Lux shampoos; the company markets Nihar oil. In Oral Care, the portfolio comprises Close-up and Pepsodent toothpastes and toothbrushes. In Skin Care, HLL markets Fair & Lovely Skin Cream and Lotion, the largest selling Skin Care Product in India; a brand developed in India, it is now exported to over 30 countries. It has been extended as an Ayurvedic cream, an under-eye cream, a soap and a talc, in line with the strategy to take brands across relevant categories. The other major Skin Care franchises are Pond‟s, Vaseline, Lakme and Pears. In Colour Cosmetics, HLL markets the Lakme and Elle-18 ranges. In Deodorants, the key brands are Rexona, Axe, Denim and Pond's, while the Talc brands are Pond's, Liril, Fair & Lovely, Vaseline and Lifebuoy. Axe and Denim are HLL‟s franchises for Men‟s toiletries. HLL has recently launched Lever Ayush Ayurvedic Health & Personal Care Products. HLL markets products, which consistently offer value in terms of price and quality and are safe for their intended use. Its operations are run in an environmentally sound and sustainable manner, ensuring that the processes and products conform to standards set by the authorities

12

S.W.O.T ANALYSIS

SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. The technique is credited to Albert Humphrey, who led a research project at Stanford University in the 1960s and 1970s using data from Fortune 500 companies.

 

Strengths

Weaknesses

Internal

Leadership Position Global Brand Strength High Geographical reach

Centralized Control Low Flexibility High Consumer churn rates

 

Opportunities

Threats

External

Expanding marketing boundaries Strategic Alliances

Increased Competition Market saturation in Europe Emergencies of Low cost Brands

13

DISTRIBUTION NETWORK

Hindustan Unilever's distribution network is recognised as one of its key

strengths. Its focus is not only to enable easy access to their brands, but also to

touch consumers with a three-way convergence of -

product availability,

brand communication,

and higher levels of brand experience.

HUL's products, manufactured across the country, are distributed through a

network of about 7,000 redistribution stockists covering about one million retail

outlets. The distribution network directly covers the entire urban population.

The general trade comprises grocery stores, chemists, wholesale, kiosks and

general stores. Hindustan Unilever services each with a tailor-made mix of

services. The emphasis is equally on using stores for direct contact with

consumers, as much as is possible through in-store facilitators.

14

The distribution network in general trade is as follows:-

FACTORY

JUST IN TIME DEPOT

REDISTRIBUTION STOCKIST

MARKET ( CHANNEL WISE )

CONSUMER

The products that are manufactured are first brought to the JIT (Just In Time)

Depot from the factory. Then these products are delivered to the Redistribution

Stockiest according to the order placed by them, this is done through Permanent

Despatch Plan.Then this stock is send to either retailers or wholesalers,

according to the channel followed by them. From there it reaches to the

consumers.

15

At the supermarkets

Self-service stores and supermarkets are fast emerging in metros and large

towns. To service modern retailing outlets in the metros, HUL has set up a full-

scale sales organisation, exclusively for this channel. The business system

delivers excellent customer service, while driving growth for the company and

the store. At the same time, innovative marketing initiatives are taken to provide

consumers with experience of our brands at the store itself, through product

tests and in-store sampling.

This is termed as Modern Trade. It has got different distribution network and

work differently. It is fast gaining pace as more and more people are turning to

malls for shopping. Today shoppers don‟t just want to buy their daily groceries

but they also want a shopping experience. They want to spend time in air

conditioned store, no more they are ready to sweat for spending money. These

big box retailers provide them a platform where they can roam around, pick,

compare and choose their products. These stores provide them a whole new

experience of shopping without shedding any drop of sweat.

16

DISTIBUTION NETWORK

FACTORY

JUST IN TIME DEPOT

CUSTOMER SERVICE PROVIDER

BIG BOX RETAILER

CONSUMER

17

PRODUCT PROFILE

Hindustan Unilever is biggest company in the FMCG (Fast Moving Consumer

Goods) sector. Its products are divided into various categories. These are given

as follows:

Home and Personal Care: under this it is further divided into two parts:

1. Dets : all the detergents and dishwashers are covered in this. For

example, Vim, Rin, Surf Exel.

2. Personal Products : this comprises of all the products related to

personal care. these are as follows:

- Oral: toothpaste and toothbrush ( Pepsodent, Close Up)

- Skin: soaps, talcum powder, fairness cream, body lotion,

winter cream ( Pears, Vaseline, Fair & Lovely, Ponds‟)

- Hair: Shampoos ( Sunsilk, Clinic All Clear)

18

INTRODUCTION

“Marketing is a social and managerial process by which individuals and groups

obtain what they need and want, through creating, offering and exchanging

products of value with others”.

- Philip Kotler.

Marketing includes all those activities having to do with effecting changes in

the ownership and possession of goods and services. It is that part of economics

which deals with the creation of time, place and possession utilities and that

phase of business activity through which human wants are satisfied, by the

exchange of goods and services for some valuable consideration.

- American Marketing Association.

Marketing is the process of discovering and translating consumer wants into

product and service specifications and then in turn helping to make it possible

for more and more of consumers to enjoy more and more of these products and

services.

19

Marketing

consists

of

analyzing

marketing

opportunities,

researching

and

selecting target markets, designing marketing strategies, planning marketing

programs and organizing, implementing and controlling marketing effort.

Companies have to identify long and short term marketing opportunities and

research the selected market by measuring and forecasting attractiveness of the

given market. Having selected the market, the companies need to develop a

differentiating and positioning strategy for the target market. The marketing

strategy

must

be

transformed

into

marketing

programs

by

deciding

on

marketing expenditures and the marketing mix. The final step is organizing the

marketing resources and implementing and controlling the marketing plan.

MARKETING MIX

Marketing mix is the set of marketing tools that a firm uses to pursue its

marketing objectives in the target market.

McCarthy has popularized a four factor classification of marketing tools known

as the 4P‟s of the marketing mix. They are:

Product

Price

Place

Promotion

Product :

20

Product stands for the firm‟s tangible offer to the market, including the product

quality, design, features, branding and packing. It deals with new product

development, product life cycle, product mix, product lines, branding and

associated services to a product. From the customer‟s point of view, it helps in

satisfying the customer‟s needs and wants.

Price :

Price is the monetary value of the product. Price deals with selecting the pricing

objectives, setting the price, discounts, allowances, payment policies and credit

terms. It is very important to the customers as it decides the cost the customer

has to pay to gain the product value.

Place :

This marketing tool stands for the various activities the company undertakes to

make the product accessible and available to the customer. It involves market

size, channel selection and management, storage and physical distribution with

the ultimate purpose of efficiently supplying the company‟s offer to the target

market. To the customer, this marketing tool refers to convenience.

Promotion:

Promotion stands for various activities the company undertakes to communicate

and promote its products to the target market. It involves communication

21

programs i.e. direct marketing, advertising, sales promotions, public relations

and motivation of sales force. To the customer this tool provides knowledge and

information.

The Promotion Mix of a company includes the following tools;

Advertising:

It is any paid form of non-personal presentation and promotion of ideas,

goods or services by an identified sponsor.

Direct Marketing:

It refers to the use of mail, telephone and other non-personal contact tools to

communicate with or solicit a response from specific customers and prospects.

Personal Selling:

Face to face interaction with one or more prospective purchasers for the

purpose of making a sale refers to personal selling.

Public Relations and Publicity:

It refers to the variety of programs designed to promote and or protect a

company‟s image or its individual products.

Sales Promotions:

22

The short-term incentive to encourage trial or purchase of a product or

service refers to sales promotion. Whereas advertising offers a reason to buy;

sales promotion offers an incentive to buy.

Sales Promotion

Sales promotion refers to the short-term incentives to encourage sales of a

product or service. It consists of a diverse collection of incentive tools, mostly

short-term, designed to stimulate quicker and greater purchase of products or

services by consumers.

Purpose of Sales Promotion

Sales promotion tools vary in their specific objectives. They may be used to

attract new customers, to reward loyal customers and to increase the repurchase

rates of occasional users. Sales promotion usually targets brand switchers

because non-users and users of other brands do not always notice a promotion.

Sales promotions are thus also seen as a tool for breaking down loyalty to other

products.

Sales promotions also let manufacturers adjust to short term changes in supply

and demand and differences in customer segments. They also let manufacturers

to experiment by varying prices. Sales promotions also lead to greater consumer

awareness of prices.

23

To use sales promotion, a company must set objectives, select the right tools,

develop the best program and implement it and evaluate the results.

Objectives of Sales Promotion

The specific objectives set for sales promotions will vary with the type of

the target market. For consumer promotions, objectives include encouraging

purchasing of larger sized units, building trial among non-users and attracting

switchers away from the competitor‟s brands. For trade promotions, objectives

may include; including retailers to carry new items and higher level of

inventory, encouraging off-seasonal buying, of-setting competitive promotions,

building brand loyalty of retailers and gaining entry into new retail outlets. The

sales force promotions help in encouraging support of a new product or model,

encouraging more prospecting and stimulating off-seasonal sales. But most

importantly, sales promotion should be focused on consumer relationship

building.

 

Sales Promotion Tools

 

Many

tools

can

be

used

to

accomplish

sales

promotion

objectives.

Descriptions of the main promotional tools are as follows;

Consumer Promotion Tools

24

The main consumer promotion tools are as follows;

Samples:

They are offers of a trial amount of a product. It consists of inviting

prospective purchasers to try the product without cost or at a lower cost in

the hope that they will buy the product. Samples may be

discounted.

Coupons:

free or

Coupons are certificates that give buyers a saving when they purchase a

specified product. Coupons can be mailed, placed in advertisements or

included with other products.

Rebates:

Rebate is also known as cash refund offers. Rebates are offers to refund

part of the purchase price of a product to its customers

who send

a

proof of purchase to the manufacturer. These are like coupons except

that the price reduction occurs after the purchase and not at the point

of sale.

Price Packs:

Cents-off

deals

or

price

packs

offer

consumers

savings

by

way

of

reducing

prices

that

are

marked

by

the

producer

directly

on

the

package.

25

Premiums:

These

are

the

goods

offered

either

free

or

at

a

low

cost

as

an

incentive to buy a product. Premiums may be in-pack or on-pack (outside

the pack).

Prizes:

They are offers of chance to win something such as cash, trips or goods by

luck or through extra efforts. Contests of talent and sweepstakes or draws the

most popular prize offering promotions.

Tie-in Promotions:

Tie-in promotions involve two or more brands or companies that team up on

coupons, refunds or contests to increase their pulling powers.

Cross Promotions:

Cross promotions involve using one brand to advertise non-competing brand.

Advertising Specialties:

These are useful articles imprinted with an advertiser‟s name, given as gifts

to consumers.

Patronage Rewards:

They are cash or other awards for the regular use of company‟s products or

services. They are values (in cash otherwise) that are proportional to one‟s

26

patronage of a certain vendor or a group of vendors. They aim at building

brand loyalty.

PoP Promotions:

Point of purchase (PoP) includes displays and demonstrations that take place

at the point of purchase or sale.

Trade Promotion Tools

More money is spent by companies on trade promotion (58%) than on

consumer promotions (42%). The major trade promotion tools are as follows;

Discounts:

It is also known as price-off or off-invoice or off-list. Discounts price cut off

the list price on a particular quantity purchased during a stated time.

Allowances:

They are the amount offered in return for an agreement by the retailer to

feature the manufacturer‟s products in some way; displays, advertising or

otherwise.

Free Goods:

27

Free goods are the extra merchandise offered to middlemen who buy a

specific amount of a product.

Companies also offer push money and specialty advertising items to the

middlemen.

 

Business Promotion Tools

 

Companies

spend

huge

amount

on

promotions

focused

on

industrial

consumers. The major business promotion tools are as follows;

Trade Shows and Conventions.

Sales Contests.

Clearly, sales promotions play an important role in the total promotion mix. To

use it well, the marketer must define the sales promotion objectives, select the

best tools, design the sales promotion program, pretest and implement the

program and evaluate its results.

28

RESEARCH METHODOLOGY

RESEARCH DESIGN

In my project I have used various tools of Exploratory Research. This research will be done to gain background information of the problem. An initial research will be conducted to clarify and define the nature of the problem. The various tools used are experience surveys, in depth interviews, secondary data analysis. Descriptive research was done where questionnaires were given to the retailers and the wholesalers to find out the competition in HUL skin category.

QUESTIONNAIRE DESIGN

The questionnaire consists of predominantly closed ended and option based question in order to provide some ease to the respondents. In order to make the questionnaire more effective following points are covered:

Uniformity in questions and ease of tabulation and analysis.

Reduce subjectivity

Easier to receive response

Less time consuming.

The questions tried to cover all aspects required to analyze the skin category of HUL and other competitive brands. The various variables are analyzed in the

questions.

SAMPLING METHODOLOGY

SAMPLE PLAN

29

The project was conducted for the geographical region of Bilaspur. The sample consists of both the retailers and wholesalers of the general trade.

DATA COLLECTION

The data collection exercise was carried over a period of 15 days, in the various markets of the region. Over the period of 15 days the data was collected and then all the data was very carefully studied and the results were found out.

“Marketing research means the systematic gathering, recording,

analyzing of data about problems relating to the marketing of goods and

services”

Marketing research has proved an essential tool to make all the need of

marketing management. Marketing research therefore is the scientific process of

gathering and analyzing of marketing information to meet the needs of

marketing management. But gathering of observation is must be systematic. The

systematic conduct of research requires:

Orderliness, in which the measurements are accurate.

Impartiality in analysis and interpretation.

All of research can be categorized into basic and applied.

1. BASIC RESEARCH: - Basic Research is that intended to expand the

body of knowledge for the use of others.

2. APPLIED RESEARCH: - Applied Research is one, which is carried out

to find the solution for a particular problem or for guiding a specific

decision. It is usually private in nature.

My research on Vodafone is carried on for guiding specific decisions and

its results are useful only to Vodafone for taking particular decision regarding

product quality, staff and security. Hence the nature of my research study is

“APPLIED RESEARCH “.

30

Research Approach

Data collection methods

a) Secondary Research

External secondary data has been generated to obtain volume of sales regarding beverage markets, fruit drinks, each of the brands and the positioning of each of the brands.

b) Survey Research

Data was collected from candidates using questionnaire. The questionnaire was distributed in colleges and people on the street.

I distributed the questionnaires outside the shops to gather data from people who had come to visit there.

I made an online questionnaire and circulated on the internet and gathered results from those.

Measurement Instruments:

The measurement instrument in the questionnaire was a five point Likert scale.

Apart from details regarding their choice of drink for refreshment, their frequency of visits and the channels they choose, their spending patterns will also be mapped.

The data was extracted and put in MS Excel. All the further analysis was then carried out using SPSS.

The measurement was designed to get a fair idea about the various attributes and conducted factorial analysis of the important attributes.

Samples

The aim was to collect 100 samples for the analysis. The samples should be such that they are consumers of fruit drinks. I also tried to get an adequate ratio

31

of men and women in the samples. The main demographics targeted were the younger age group as they are more health conscious and aware of such health drinks. Also I tried to focus more on the college going crowd and young professionals as they would be more interested in trying out new products and were more conscious. Buyers who have been consuming fruit drinks were better able to answer the questions regarding the influencing factors and the reasons for their consumption and purchase. The samples collected from internet have also been very valuable in the research.

Analysis Techniques

The analysis techniques used have been on SPSS and the tests were performed to ascertain the factors influencing the consumer decision while buying fruit drinks.

Factor analysis was conducted to discern out of the 13 factors mainly which factors influence the buying habits of the consumers. Ultimately I identified 5 factors which mainly have an influence.

I also conducted correlation tests to find out the various reasons for purchasing any particular brand of fruit drink.

SOURCES OF DATA

any particular brand of fruit drink. SOURCES OF DATA Primary Data Secondary Data Questionnaire Newsletter
any particular brand of fruit drink. SOURCES OF DATA Primary Data Secondary Data Questionnaire Newsletter

Primary Data

Secondary Data

Questionnaire

Newsletter

Observation

Journals

Interviews

Magazines

Visits to other

Newspapers

Companies Information

Books

Through Departmental heads

Websites

32

Limitations:

The main limitation is the sampling conducted. It was done in a random manner and no particular technique followed. In the first survey a greater number of college students have been surveyed. The data might not be representative of the entire population.

Various statistical techniques as learned have been implemented and conclusions as best possible have been drawn making few assumptions as and when required.

Since no data was on interval or ratio scale it was not feasible to conduct Regression and ANOVA.

Limitations of the Study

Every study is bound by limitations and as such this is no exceptions.

1.

“Change is Constant” rule of nature. Hence, the study undertaken may

not hold good for longer duration.

2.

The study was conducted under the assumption that the information given

by the respondents is authentic.

3.

The analysis and suggestion are given only with respect to marketing

aspects as technical suggestion with respect to the product could not be

given.

4.

Confidential matters were not disclosed by the company.

33

5. There were time constraints.

SUMMARY OF FINDINGS AND CONCLISION

A Summary of Findings:

The finding can be grouped together into two broad categories such as;

Specific Findings :

This is pertaining to the objectives of the study.

General Findings :

This is with regard to the market dynamics and visits made by the

researcher to companies having almost similar products profile.

Specific Findings:

1. The company adopts a variety of promotional methods such as paper

insertion, telemarketing, display stalls, participating in exhibitions, direct

mail, presentations and showrooms.

2. Every player is vying with each other to capture a larger pie in the

markets.

3. Transparency is maintained at the levels of the organization.

34

4. The

activities

carried

out

by

each

organization is systematic.

and

every

General Findings:

department

of

the

1. Foreign companies can invest up to 100% in most of the manufacturing

industries in India, including furniture.

2. With the vast array of modular option available in market, the consumer

isn‟t really strapped for choice.

3. In a nutshell, this means to say that the competition is very intense.

4. Many branded companies outsource the products because of which the

delivery time of the product ordered is stretched.

5. HUL offers a wide range of products. This gives it an edge over the

others.

6. “Quality never comes cheap”. This is true but at the same time, it is also

true that quality can come at a reasonable price. With regard to the

quality, products of HUL are at par with the other players having brand

names and at the same time the products are reasonable priced.

7. Majority of the marketing executives are male.

8. The prices of the products are reasonable though they are competitive.

9. The products are of good quality and are at par with other competitors

having brand names.

35

10. Reasonable

pricing,

customized

products,

quality

and

finishing

contributes in differentiating the products of the organization from that of

the others.

36

Data Analysis

37

Data Analysis Type of Respondent Cumulative Frequency Percent Valid Percent Percent Valid 19 19.2 19.2
Data Analysis
Type of Respondent
Cumulative
Frequency
Percent
Valid Percent
Percent
Valid
19
19.2
19.2
19.2
Retailer
66
66.7
66.7
85.9
Wholesellr
14
14.1
14.1
100.0
Total
99
100.0
100.0
38
 

Deals in HUL Products

 
         

Cumulative

 

Frequency

Percent

Valid Percent

Percent

Valid

 

19

19.2

19.2

19.2

Yes

80

80.8

80.8

100.0

Total

99

100.0

100.0

 
  19 19.2 19.2 19.2 Yes 80 80.8 80.8 100.0 Total 99 100.0 100.0   39

39

 

Personal Care

 
         

Cumulative

 

Frequency

Percent

Valid Percent

Percent

Valid

 

19

19.2

19.2

19.2

yes

80

80.8

80.8

100.0

Total

99

100.0

100.0

 
  19 19.2 19.2 19.2 yes 80 80.8 80.8 100.0 Total 99 100.0 100.0   40

40

Confectionery Cumulative Frequency Percent Valid Percent Percent Valid 19 19.2 19.2 19.2 No 14 14.1
Confectionery
Cumulative
Frequency
Percent
Valid Percent
Percent
Valid
19
19.2
19.2
19.2
No
14
14.1
14.1
33.3
yes
66
66.7
66.7
100.0
Total
99
100.0
100.0

41

 

Dental Care

 

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

 

19

19.2

19.2

19.2

No

8

8.1

8.1

27.3

yes

72

72.7

72.7

100.0

Total

99

100.0

100.0

 
No 8 8.1 8.1 27.3 yes 72 72.7 72.7 100.0 Total 99 100.0 100.0   42

42

 

Detergent and Soaps

 
         

Cumulative

 

Frequency

Percent

Valid Percent

Percent

Valid

 

19

19.2

19.2

19.2

No

13

13.1

13.1

32.3

Yes

67

67.7

67.7

100.0

Total

99

100.0

100.0

 
No 13 13.1 13.1 32.3 Yes 67 67.7 67.7 100.0 Total 99 100.0 100.0   43

43

 

Visits of Agents per week

 
         

Cumulative

 

Frequency

Percent

Valid Percent

Percent

Valid

 

1 9

9.1

11.3

11.3

 

2 34

34.3

42.5

53.8

   

3 37

37.4

46.3

100.0

Total

80

80.8

100.0

 

Missing

System

19

19.2

   
 

Total

99

100.0

   
80.8 100.0   Missing System 19 19.2       Total 99 100.0     44

44

 

Orders Placed Per Month

 
         

Cumulative

 

Frequency

Percent

Valid Percent

Percent

Valid

1

1

1.0

1.3

1.3

2

9

9.1

11.3

12.5

3

20

20.2

25.0

37.5

4

24

24.2

30.0

67.5

5

22

22.2

27.5

95.0

6

3

3.0

3.8

98.8

9

1

1.0

1.3

100.0

Total

80

80.8

100.0

 

Missing

System

19

19.2

   
 

Total

99

100.0

   
80.8 100.0   Missing System 19 19.2       Total 99 100.0     45

45

 

Quantity in Single Purchase ( '000)

 
         

Cumulative

 

Frequency

Percent

Valid Percent

Percent

Valid

5

34

34.3

42.5

42.5

6

14

14.1

17.5

60.0

8

18

18.2

22.5

82.5

25

4

4.0

5.0

87.5

30

8

8.1

10.0

97.5

40

1

1.0

1.3

98.8

50

1

1.0

1.3

100.0

Total

80

80.8

100.0

 

Missing

System

19

19.2

   
 

Total

99

100.0

   
80.8 100.0   Missing System 19 19.2       Total 99 100.0     46

46

 

Most Difficult to Sold

 
         

Cumulative

 

Frequency

Percent

Valid Percent

Percent

Valid

 

19

19.2

19.2

19.2

Dental Care

80

80.8

80.8

100.0

Total

99

100.0

100.0

 
19 19.2 19.2 19.2 Dental Care 80 80.8 80.8 100.0 Total 99 100.0 100.0   47

47

Easy to Sold Cumulative Frequency Percent Valid Percent Percent Valid 19 19.2 19.2 19.2 Personal
Easy to Sold
Cumulative
Frequency
Percent
Valid Percent
Percent
Valid
19
19.2
19.2
19.2
Personal Care
80
80.8
80.8
100.0
Total
99
100.0
100.0
48
 

Incentive

 
         

Cumulative

 

Frequency

Percent

Valid Percent

Percent

Valid

 

19

19.2

19.2

19.2

Cash Discounts

10

10.1

10.1

29.3

Free Gifts

14

14.1

14.1

43.4

Trade Discounts

56

56.6

56.6

100.0

Total

99

100.0

100.0

 
14.1 14.1 43.4 Trade Discounts 56 56.6 56.6 100.0 Total 99 100.0 100.0   49

49

 

Attraction to Offers

 
   

Frequenc

 

Valid

Cumulative

 

y

Percent

Percent

Percent

Valid

 

19

19.2

19.2

19.2

No

13

13.1

13.1

32.3

Yes

67

67.7

67.7

100.0

Total

99

100.0

100.0

 
No 13 13.1 13.1 32.3 Yes 67 67.7 67.7 100.0 Total 99 100.0 100.0   50

50

 

Customer have knowledge of product

 
         

Cumulative

 

Frequency

Percent

Valid Percent

Percent

Valid

 

19

19.2

19.2

19.2

No

33

33.3

33.3

52.5

Yes

47

47.5

47.5

100.0

Total

99

100.0

100.0

 
No 33 33.3 33.3 52.5 Yes 47 47.5 47.5 100.0 Total 99 100.0 100.0   51

51

 

customer have knowledge of Company

 
         

Cumulative

 

Frequency

Percent

Valid Percent

Percent

Valid

 

19

19.2

19.2

19.2

No

50

50.5

50.5

69.7

Yes

30

30.3

30.3

100.0

Total

99

100.0

100.0

 
No 50 50.5 50.5 69.7 Yes 30 30.3 30.3 100.0 Total 99 100.0 100.0   52

52

Customers Attracted by Offers Cumulative Frequency Percent Valid Percent Percent Valid 19 19.2 19.2 19.2
Customers Attracted by Offers
Cumulative
Frequency
Percent
Valid Percent
Percent
Valid
19
19.2
19.2
19.2
No
12
12.1
12.1
31.3
Yes
68
68.7
68.7
100.0
Total
99
100.0
100.0

53

 

P&G

     

Cumulative

   

Frequency

Percent

Valid Percent

Percent

Valid

 

19

19.2

19.2

19.2

no

50

50.5

50.5

69.7

yes

30

30.3

30.3

100.0

Total

99

100.0

100.0

 
no 50 50.5 50.5 69.7 yes 30 30.3 30.3 100.0 Total 99 100.0 100.0   54

54

 

ITC

         

Cumulative

 

Frequency

Percent

Valid Percent

Percent

Valid

 

19

19.2

19.2

19.2

no

41

41.4

41.4

60.6

yes

39

39.4

39.4

100.0

Total

99

100.0

100.0

 
no 41 41.4 41.4 60.6 yes 39 39.4 39.4 100.0 Total 99 100.0 100.0   55

55

 

Others

       

Cumulative

Frequency

Percent

Valid Percent

Percent

Valid

 

19

19.2

19.2

19.2

yes

80

80.8

80.8

100.0

Total

99

100.0

100.0

 
  19 19.2 19.2 19.2 yes 80 80.8 80.8 100.0 Total 99 100.0 100.0   56

56

Chi Square Analysis

57

Visits of Agents per week * Orders Placed Per Month

 

Analysis Table

     

Orders Placed Per Month

     

1

2

3

Visits of Agents per week

1

Observed

1

0

6

Expected

.1

1.0

2.3

       
 

%

within Orders Placed

100.0%

.0%

30.0%

Per Month

     
 

2

Observed

0

1

14

 

Expected

.4

3.8

8.5

%

within Orders Placed

.0%

11.1%

70.0%

Per Month

     
 

3

Observed

0

8

0

 

Expected

.5

4.2

9.3

%

within Orders Placed

.0%

88.9%

.0%

Per Month

 

Total

Observed

1

9

20

 

Expected

1.0

9.0

20.0

%

within Orders Placed

100.0%

100.0%

100.0%

 

Per Month

 

58

 

Analysis Table

     

Orders Placed Per Month

 

4

5

6

Visits of Agents per week

1

Observed

1

0

1

Expected

2.7

2.5

.3

 

%

Per Month

within Orders Placed

4.2%

.0%

33.3%

 

2

Observed

15

3

0

 

Expected

10.2

9.4

1.3

%

within Orders Placed

     

Per Month

62.5%

13.6%

.0%

 

3

Observed

8

19

2

 

Expected

11.1

10.2

1.4

%

within Orders Placed

     

Per Month

33.3%

86.4%

66.7%

 

Total

Observed

24

22

3

 

Expected

24.0

22.0

3.0

%

within Orders Placed

     

Per Month

100.0%

100.0%

100.0%

59

 

Analysis Table

     

Orders Placed

 
 

Per Month

     

9

Total

Visits of Agents per week

1 Observed

0

9

 

Expected

.1

9.0

 

% within Orders Placed Per Month

   

.0%

11.3%

   

2 Observed

1

34

 

Expected

.4

34.0

% within Orders Placed Per Month

   

100.0%

42.5%

   

3 Observed

0

37

 

Expected

.5

37.0

% within Orders Placed Per Month

   

.0%

46.3%

 

Total

Observed

1

80

 

Expected

1.0

80.0

% within Orders Placed Per Month

   

100.0%

100.0%

60

Chi-Square Tests

Asymp. Sig. (2- sided)

Value

df

Pearson Chi-Square

56.420 a

12

.000

Likelihood Ratio

64.482

12

.000

4.999

1

.025

Linear-by-Linear Association

80

N of Valid Cases

a. 15 cells (71.4%) have expected count less than 5. The minimum expected count is .11.

Association 80 N of Valid Cases a. 15 cells (71.4%) have expected count less than 5.

61

Visits of Agents per week * Quantity in Single Purchase ( '000)

 

Analysis Table

     

Quantity in Single Purchase ( '000)

 
     

5

6

8

Visits of Agents per week

1

Observed

6

0

0

Expected

3.8

1.6

2.0

 

%

within Quantity in

     

Single Purchase (

17.6%

.0%

.0%

'000)

 

2

Observed

23

0

0

 

Expected

14.5

6.0

7.6

%

within Quantity in

     

Single Purchase (

67.6%

.0%

.0%

'000)

 

3

Observed

5

14

18

 

Expected

15.7

6.5

8.3

%

within Quantity in

     

Single Purchase (

14.7%

100.0%

100.0%

'000)

 

Total

Observed

34

14

18

 

Expected

34.0

14.0

18.0

%

within Quantity in

     

Single Purchase (

100.0%

100.0%

100.0%

'000)

62

 

Analysis Table

     

Quantity in Single Purchase (

   

'000)

     

25

30

40

Visits of Agents per week

1

Observed

1

1

0

Expected

.5

.9

.1

 

%

within Quantity in

     

Single Purchase (

25.0%

12.5%

.0%

'000)

 

2

Observed

3

7

1

 

Expected

1.7

3.4

.4

%

within Quantity in

     

Single Purchase (

75.0%

87.5%

100.0%

'000)

 

3

Observed

0

0

0

 

Expected

1.9

3.7

.5

%

within Quantity in

     

Single Purchase (

.0%

.0%

.0%

'000)

 

Total

Observed

4

8

1

 

Expected

4.0

8.0

1.0

%

within Quantity in

     

Single Purchase (

100.0%

100.0%

100.0%

'000)

63

 

Analysis Table

 
     

Quantity in

 
 

Single

Purchase (

'000)

     

50

Total

Visits of Agents per week

1 Observed

1

9

   

Expected

.1

9.0

 

%

within Quantity in

100.0%

11.3%

Single Purchase ( '000)

   
   

2 Observed

0

34

   

Expected

.4

34.0

%

within Quantity in

.0%

42.5%

Single Purchase ( '000)

   
   

3 Observed

0

37

   

Expected

.5

37.0

%

within Quantity in

Single Purchase ( '000)

.0%

46.3%

 

Total

 

Observed

1

80

   

Expected

1.0

80.0

%

within Quantity in

100.0%

100.0%

 

Single Purchase ( '000)

   

64

Chi-Square Tests

Asymp. Sig. (2- sided)

Value

df

Likelihood Ratio

86.082

12

.000

Linear-by-Linear Association

8.850

1

.003

N of Valid Cases 80
N of Valid Cases
80

a. 15 cells (71.4%) have expected count less than 5. The minimum expected count is

.11.

1 .003 N of Valid Cases 80 a. 15 cells (71.4%) have expected count less than

65

Pearson Chi-Square

71.081 a

12

.000

Incentive * Orders Placed Per Month

 

Analysis Table

     

Orders Placed Per Month

     

1

2

3

Incentive

Cash Discounts