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I also extend my heartiest gratitude to all of respondents and all those who
directly or indirectly helped me in this project without whom the project
would not have been otherwise.
R.NAVEENDRAN
(MBA-1STYEAR)
CONTENTS
2 Objectives
Scope of the study
Limitations
3 Review of Literature
4 Research methodology
7 Bibliography
Annexure
PREFACE
Research is the feedback, which any organization sought for the purpose of
effective policy making. It is the systematic problem Analysis, model
building and fact finding for the purpose of important decision -making and
control in the marketing of goods and services. Practical aspect gives more
knowledge and experience than the theory and no learning can be completed
without practical aspect.
FMCG Company has been playing a pivotal role in the national economy in
both rural and urban sector.
-1-
INDUSTRY PROFILE
Cleaning the closet in the bathroom/washroom could be a demanding task. Thanks
to some sophisticated products, it is no longer a cumbersome task. Some actually find it
intriguing enough to indulge in it.
Our focus today is on one such product which makes cleaning toilets very easy. We
would have seen some advertisements on the television about this from time to time, but
here we are covering some different aspects of this wonder cleaning liquid – HARPIC.
For starters, Harpic is a brand owned by a British company called Reckitt Benckiser who
is a strong player in the Indian Market along with many other interesting products. We
will cover them one after another in the coming days. Interestingly enough, Reckitt
Benckiser was previously known as Reckitt & Colman India. Harpic was originally
invented by Mr. Harry Pickup (hence the name!).
Launched in England in the 1920s, Harpic toilet bowl cleaner has been successfully
extended to 47 countries on a platform of powerful cleaning. Harpic provides a full range
of liquid toilet bowl cleaners, tablets, wipes, toilet bowl blocks, cistern blocks and brush
systems. (taken from Reckitt Benckiser’s website)
One of the features on the product is that it has a “child-proof” cap which has to be
pressed and opened, making it safe against kids at home.The primary claims of the
product enhanced by its ”Opti-Thick” formula are:
The product is available in 500 ml, 200 ml and 35 ml quantities. The first two are bottles
whereas the last one is a sachet.
The competing products for Harpic are primarily “Sanifresh” and other local players such
as phenyl and powder based cleaning agents.
COMPANY PROFILE
Company Overview
The company has the sales of over 6 billion pounds consistently going ahead
of the industry due to its leading brands, its operation in over 60 countries
and sales in 180, and its highly motivated multinational management.
The operating profit of the company was GBP 1,505.00 million during the
fiscal year 2008, an increase of 22.06% over 2007. The net profit of the
company was GBP 1,120.00 million during the fiscal year 2008, an increase
of 19.40% over 2007. In 2008, the BBC broadcast an investigaton into the
methods Reckitt Benckiser used to maintain the market share of the
Gaviscon powerbrand.
The company held Platinum status in 2005, 2006, 2007, and 2008 in the
Business.
History
RECKITT COLMAN
Colman's was founded in 1814 when Jeremiah Colman began milling flour
and mustard in Norwich, England. Reckitt & Sons started in 1840 when
Isaac Reckitt rented a starch mill in Hull, England. He diversified into other
household products and in due course passed on his business to his four
sons. Reckitt & Sons was first listed on the London Stock Exchange in 1888.
In 1938 Reckitt & Sons merged with J&J Colman to become Reckitt &
Colman Ltd. Reckitt & Colman sold the Colman's food business in 1995 but
still has some food brands.
Benckiser
Johann A. Benckiser founded a business in Germany in 1823. Its main
products were industrial chemicals. Benckiser went public in 1997.
Reckitt & Benckiser Plc, UK, promote Reckitt & Benckiser of India Ltd
(Reckitt & Benckiser).The company has business interests in household
products, personal care and pharmaceuticals.Key brands include Dettol,
Cherry Blossom, Harpic, Robin liquid blue and Mortein. Around 40% of the
company´s sales come from its flagship product Dettol. Dettol`s market
share hovers around 85% and its product portfolio comprises toilet soaps,
anti germ liquids and talcum powder. The remaining divisions, namely
fabric care, shoe care and floor care contribute approximately 15% to the
total turnover.
Within the household products and the personal care segments, Reckitt &
Benckiser is mainly into insecticides, lavatory care, surface care, shoe care
and air fresheners. Insecticides contribute over 50% to Reckitt &
Benckiser’s household business and 26% to its total sales. The company has
a strong brand Mortein in the insect repellent market with a total market
share of 45% (coil 12% and mats 33%). In the relatively small lavatory care
market (Rs320m), Reckitt & Benckiser’s Harpic enjoys a 79.6% market
share. Its brand Cherry enjoys a 79% market share in the Indian shoe care
industry. The Indian air freshener market is estimated at Rs120m with
Balsara Hygiene’s Odonil leading the market with an 80% share. Reckitt &
Benckiser has positioned its Haze brand at the premium end of the market.
Regarding the wash-segment, Reckitt & Benckiser is currently present only
in the post-wash segment with its flagship brand Robin Blue, which is in
existence since 1984. Robin Blue powder market share is around 20%.
The company has entered into a joint venture, operational from March 1998,
with pharmaceutical major Nicholas Piramal; a company having a strong
distribution reach with chemists. The UK parent and Nicholas Piramal hold
40% stake each while the balance is with Reckitt & Benckiser. The joint
venture, Reckitt Piramal, is the largest over the counter (OTC)
pharmaceutical company in the country. The JV, besides improving sales of
its flagship product Dettol, which currently contributes to over 80% of the
JV´s sales, would also help in pushing other products like Dispirin and
Gelora.
Recent Development
Reckitt Benckiser Plc and Lancaster Square Holdings SL, have made a
voluntary offer to the equity shareholders of Reckitt Benckiser India Ltd to
acquire 41,91,339 equity shares of Rs 10each, representing 12.73 per cent of
the paid up equity share capital of Reckitt Benckiser India,at Rs 250 per
share, payable in cash. The specified date is August 16, 2002. The date of
the opening of the offer is September 2, 2002. The date of the closing of the
offer is October 1, 2002.
In aggregate, Reckitt Benckiser Plc and Lancaster Square at present hold
28,721,849 fully paid up equity shares of Rs 10 each, representing 87.27 per
cent of the paid up equity share capital of Reckitt Benckiser India. After the
open offer the company plans to delist its shares.
Reckitt Benckiser Plc has received approval from the Foreign Investment
Promotion Board (FIPB) for infusion of funds of Rs 403.19 crore for the
open offer of its subsidiary, Reckitt Benckiser (India) Ltd. The parent has
made an open offer to acquire the public shareholding of Reckitt Benckiser
(India) at Rs 250 per share.
As part of its strategy, Reckitt & Benckiser has decided to pull out of its
food products business. Its factory at Chetla, which manufactures the
Robinson brand of barley, is proposed to be sold as a going concern.
Negotiations in this regard are currently underway.
The merged overseas parent, christened Reckitt Benckiser Plc, which holds
51 per cent of the company`s equity stake, was firming up its strategy to
garner a higher share of the market for dish wash, home care, fabric care and
health care products. Reckitt & Benckiser would draw up its strategy some
time later in line with the parent company`s strategy. A decision on change
in the name of Reckitt & Benckiser would also be taken after the legal
formalities are completed in the UK.
VISION
‘Reckitt Benckiser is about passionately delivering better solutions in
household cleaning and health & personal care to customers and consumers,
wherever they may be, for the ultimate purpose of creating shareholder
value.’
This vision defines both our purpose and our values as a Company and
encompasses our commitment to product quality and safety, customer
service, innovation, global reach and corporate social responsibility.
VALUES
Our core values are a set of guiding principles through which we think,
behave and conduct our business in order to deliver on our vision.
OBJECTIVES
JA Benckiser circa1823(left),
Isaac Reckitt circa 1860s (right)
• Derby site director Andre Croatto said: “We are incredibly proud of
what we have achieved over the past four years. Improvements in
efficiency and cost savings have more than justified the capital
investment levels and personal commitment that the Group’s senior
management has shown in Derby. It is also a huge credit to the team
here at all levels, and has not been without its problems or pain at
times - but the results have been outstanding. We are confident,
despite fierce competition in all our market sectors, that the future
both for Derby and the company as a whole, is very bright.”
COMPETITORS
Sanifresh
Others (Domex)
MARKET SIZE
The term consumer behavior refers the behavior that consumers display in
the searching for purchasing, using, evaluating and disposing of product and
services that they expect, will satisfy their needs. Consumer is highly
complex individuals, subject to a variety of psychological needs and buying
behavior. Need and priorities of the different consumers segment differ
effectively.
To know how the several factors like price, quality, brand name,
availability affects the buying decision.
Although every effort is made to make the result accurate but almost all the
report suffers from certain limitations. The result which I obtained from this
study, also suffers from certain limitations. The limitations of this study are
as follows.
Sometimes some consumers were not in full mood to give the answers
of my questions so some of the answers may not be exact.
SCOPE OF THE STUDY
This study helps to analyze the confidence and skill level of the
students .
REVIEW OF LITERATURE
A literature review is a body of text that aims to review the critical points
of current knowledge and or methodological approaches on a particular
topic. Literature reviews are secondary sources, and as such, do not report
any new or original experimental work. A good literature review is
characterized by: a logical flow of ideas; current and relevant references
with consistent, appropriate referencing style; proper use of terminology;
and an unbiased and comprehensive view of the previous research on the
topic
CONSUMER:-
BEHAVIOUR:-
Definition
Process by which individuals search for, select, purchase, use, and dispose
of goods and services, in satisfaction of their needs and wants.
Need to understand:
Types of risk:
• Personal risk
• Social risk
• Economic risk
The purchase of the same product does not always elicit the same
Buying Behavior. Product can shift from one category to the next.
1. Personal
2. Psychological
3. Social
Personal
Psychological factors
Psychological factors include:
Motives--
o Physiological
o Safety
o Love and Belonging
o Esteem
o Self Actualization
Perception--
Attitudes—
Personality--
All the internal traits and behaviors that make a person unique,
uniqueness arrives from a person's heredity and personal experience.
Examples include:
o Workaholism
o Compulsiveness
o Self confidence
o Friendliness
o Adaptability
o Ambitiousness
o Dogmatism
o Authoritarianism
o Introversion
o Extroversion
o Aggressiveness
o Competitiveness.
Traits effect the way people behave. Marketers try to match the store
image to the perceived image of their customers.
There is a weak association between personality and Buying
Behavior, this may be due to unreliable measures..
Lifestyle--
Social Factors
Opinion leaders--
Family is the most basic group a person belongs to. Marketers must
understand:
The Family life cycle: families go through stages, each stage creates
different consumer demands:
o bachelor stage...
o newly married, young, no children...me
o full nest I, youngest child under 6
o full nest II, youngest child 6 or over
o full nest III, older married couples with dependant children
o empty nest I, older married couples with no children living with
them, head in labor force
o empty nest II, older married couples, no children living at
home, head retired
o solitary survivor, in labor force
o solitary survivor, retired
o Modernized life cycle includes divorced and no children.
Social Class--
Lower class people tend to stay close to home when shopping, do not
engage in much prepurchase information gathering.
Stores project definite class images.
Family, reference groups and social classes are all social influences on
consumer behavior. All operate within a larger culture.
Culture refers to the set of values, ideas, and attitudes that are
accepted by a homogenous group of people and transmitted to the
next generation.
o geographic regions
o human characteristics such as age and ethnic background.
RESEARCH METHODOLOGY
Sources of Data
This data is that the researcher collects himself. It is reliable way to collect
data as it requires the learner to interact with the source and extract
information. It allows the learner to access original & unedited information.
Its methods are –
• Surveys
• Observations
• Questionnaire
• Experiments
Secondary Sources
Data sources are edited primary sources, second hand versions. It represent
thinking of someone else. Secondary sources take the role of analysing,
explaining & combining the information from the primary source with
additional information.
• Internet
• Magazines
• Management books
DATA SOURCE
Questionnaire:-
To a self-administered process whereby the respondent himself reads the
questions and answer his questions without the assistance of an interviewer.
Structured Questionnaire:-
A structured questionnaire is one in which every aspect of the questionnaire
is determined and there is no scope of any modification or alteration after the
final draft is adopted. For example, a question with four alternative possible
answers may be given and the respondents has to select the closest answer
within the four alternative given.
SAMPLE SIZE:-
Sample size denotes the number of elements selected for the study. For the
present study, 50 respondents were selected at random.
SAMPLING METHOD:-
A sample is a representative part of the population. In sampling technique,
information is collected only from a representative part of the universe and
the conclusions are drawn on that basis for the entire universe.
Further, coding and analysis was done for each question’s response to reach
into finding .
QUESTIONNAIRE
Dear Respondent,
I am Doing MBA program “VEL RANGARAJAN SAKUNTHALA
COLLEGE OF MANAGEMENT & SCIENCE”,CHENNAI.
Where I have been given a project .The title of my research is “To study the
consumer buying behavior towards HARPIC TOILET CLEANER.
Disclaimer
This is to acknowledge that the following survey is purely for educational
purposes. The identity of the respondent will be kept confidential.
Name -
Age
a) 18 to 25years b) 25 to 35years c) 35 to 45years d) above 45years
Sex
a) male b) female
Income Level
a) Less than 5000 b) 5000 – 10000 c) 10000 – 15000 d) above 15000
10. Do you typically read the back and side panel of the product’s package ?
a) Yes b) no
11. Over all, how do you rate the quality of the product ?
a) Excellent b) good c) moderate d) poor e) very poor