M y P roject P aper Excellence is our Passion My Project Paper has come in existence to ease companies and students to prepare best of project with professionalism to showcase what they want to portray. My Project Paper has helped several students and corporate clients by providing them with analytical report, comparative statements, trend analysis, reports for merger and acquisitions, marketing papers and customized research work We have launched a website www.myprojectpaper.com to ease companies and students across the globe to avail this facility, and grab the best from the Knowledge Domain We are really happy to have you as a client and love to provide you with the best solution available in the industry. Thanks for having faith in us. -: Business head Chanpreet S Grover My Project Paper Mail me at: [email protected]
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M y P roject P aper Excellence is our Passion
My Project Paper has come in existence to ease companies and students to prepare best of project with professionalism to showcase what they want to portray.
My Project Paper has helped several students and corporate clients by providing them with analytical report, comparative statements, trend analysis, reports for merger and acquisitions, marketing papers and customized research work
We have launched a website www.myprojectpaper.com to ease companies and students across the globe to avail this facility, and grab the best from the Knowledge Domain
We are really happy to have you as a client and love to provide you with the best solution available in the industry. Thanks for having faith in us.
-: Business head Chanpreet S Grover My Project Paper
Research Report on Lakme (A Product of Hindustan Unilever Ltd)
CONTENTS
EXECUTIVE SUMMARY
1. INTRODUCTION
2. CRITICAL REVIEW OF LITERATURE
3. RESEARCH METHODOLOGY
3.1 OBJECTIVE OF THE STUDY3.2 HYPOTHESIS3.3 RESEARCH DESIGN3.4SAMPLE DESIGN
4. INDUSTRY PROFILE
5. DATA,FINDING & ANALYSIS
6. RECOMMENDATION & CONCLUSION
7. BILIOGRAPHY
8. REFRENCES
Executive summary
About the project
Within a short span of the last five-six years, the use of cosmetics by Indian consumers has increased significantly with more and more women and men taking greater interest in personal grooming, increasing disposable incomes, changing life styles, influence of satellite television and greater product choice and availability.
This cosmetics and personal care industry has been growing at an average rate of 20 per cent for the last few years. The growing Indian cosmetics market offers promising prospects for international brands. The growth rate in the cosmetics market reflects an increasing demand for beauty care products in India. Perfumes and fragrances, skin care, and hair care products are some of the major segments with promising prospects for U.S. companies.
Penetration of most cosmetic and toiletries is very low in India. Current consumption of many products is well below that of many countries in Asia. The low market penetration of many cosmetics and personal care products offers room for growth.
The urban population with increasing purchasing power is the major force driving demand for cosmetics and toiletries. India is a very price-sensitive market and mass-market products constitute the major part of the cosmetics and toiletries market. India’s import of cosmetics and toiletries and intermediate raw materials is around US$ 120 million, of which the U.S. has a share of approximately 10 percent.
Plan of the project
Beauty is skin deep… and sure enough Lakme understand it like no one does .Today brand lakme stand strong as one of the 100 most powerful brands and right fully so ,for it’s ‘the’ brand that lights up the face of million girls ,everyday. It’s a brand that inspire, motivate and infuses confidence Colours , shades, brushes and tones to beautify , have been the core attribute of the products. The challenge which the cosmetic industry has to break was the negative connotation of “being fashionable’’.Though the brand missed out on during the past year despite having roped top brand ambassadors is that it scored low on promotional gauge. In the following project we basically seeks to provide experiential marketing solutions to a brand (Lakme) .We also gauge into reasons that why Lakme’s position as market leader was threatened when international majors like Revlon and Maybelline entered the fray in the mid-90s.The research process was entailed by visiting lakme outlets in noida ,which includes the response received from target audiences(Min age 19yrs- Max -45yrs) via through questionnaire for deeper insights.
CHAPTER 2- CRITICAL REVIEW OF LITERATURE
1A STUDY ON CONSUMER BUYING BEHAVIOR ON BRITANNIA
MARIE GOLDBISCUITS
By G.PRAKASH
(41502631064)Of
SRM ENGINEERING COLLEGE A PROJECT REPORT
Submitted to theFACULTY OF MECHANICAL ENGINEERING
In partial fulfillment of the requirementsFor the award of the degree
OfMASTER OF BUSINESS ADMINISTRATION
ANNA UNIVERSITYCHENNAI- 600 025
JUNE, 20042BONAFIDE CERTIFICATE
Certified that this project report titled “A STUDY ON CONSUMER BUYING
BEHAVIOR ON BRITANNIA MARIE GOLD BISCUITS ” Mr. G.PRAKASH
[41502631064] who carried out the research under my supervision. Certified further, that
to the best of my Knowledge the work reported herein does not form part of any other
project or dissertation on the basis of which a degree or award was conferred on an earlier
occasion on this or any other candidates.PROJECT GUIDE HEAD OF THE DEPARTMENT
WHOLESALERS FOR :BRITANNIA INDUSTRIES LTD ], for having given me opportunity to
associate myselfwith the Organisation.
Last but not least, I would like to thank my friends and parents for justbeing there whenever I needed their support.
(PRAKASH.G)4LIST OF CONTENT
CHAPTER NO TITLE PAGE NOCHAPTER-1
1.1 INTRODUCTION 11.2 PROFILE OF BISCUIT INDUSTRY 3
1.3 COMPANY PROFILE 51.4 PRODUCT PROFILE 7
1.5 OBJECTIVES 81.6 SCOPE OF THE STUDY 9
1.7 REVIEW OF LITERATURE 101.8 LIMITATIONS 18
CHAPTER – 22.1 RESEARCH METHODOLOGY 19
2.2 RESEARCH DESIGN 192.3 DATA COLLECTION METHODS 20
2.4 SAMPLING SCHEME 232.5 QUESTIONNAIRE DESIGN 24
2.6 STATISTICAL TOOLS USED FOR ANALYSIS 252.72.8
ANALYSIS AND INTERPRETATIONSTATISTICAL TEST
26475
CHAPTER-33.1 FINDINGS
523.2 SUGGESTION
533.3 CONCLUSION
553.4 APPENDIX
563.5 BIBLIOGRAPHY
586TableNo.
Titles PageNo.
2.7.1 Classification on the basis of gender 262.7.2 Classification on the basis of age 27
2.7.3 Classification of occupation 282.7.4 Awareness about Britannia Marie gold biscuits 29
2.7.5 Mode of awareness about Britannia Marie gold biscuits 302.7.6 Whether they buy Britannia Marie gold biscuits 312.7.7 Reason for buying Britannia Marie gold biscuits 32
2.7.8 No of packs do they buy in one month 332.7.9 Opinion about the price of the biscuits 34
2.7.10 Whether they are interested to buy with current price 352.7.11 Ratings of the opinion that attracts the customers to buy the
biscuit 362.7.12 Ratings of the factors which influence them the choice of biscuits
372.7.13 The frequency of purchase of biscuits 38
2.7.14 Ratings of the various features of Britannia Marie gold biscuits with
respect to taste39
2.7.15 Ratings of the various features of Britannia Marie gold biscuits with
respect to price40
2.7.16 Ratings of the various features of Britannia Marie gold biscuits with
respect to quality41
2.7.17 Ratings of the various features of Britannia Marie gold biscuits with
respect to package42
2.7.18 Ratings of the various features of Britannia Marie gold biscuits with
respect to brand image43
2.7.19 Ratings of the various features of Britannia Marie gold biscuits with
respect to others44
2.7.20 Pack size preferred in buying Britannia Marie gold biscuits 452.7.21 Whether Britannia Marie gold biscuits are easily available 467
ChartNo.
Titles PageNo.
2.7.1 Classification on the basis of gender 262.7.2 Classification on the basis of age 27
2.7.3 Classification of occupation 282.7.4 Awareness about Britannia Marie gold biscuits 29
2.7.5 Mode of awareness about Britannia Marie gold biscuits 302.7.6 Whether they buy Britannia Marie gold biscuits 312.7.7 Reason for buying Britannia Marie gold biscuits 32
2.7.8 No of packs do they buy in one month 332.7.9 Opinion about the price of the biscuits 34
2.7.10 Whether they are interested to buy with current price 352.7.11 Ratings of the opinion that attracts the customers to buy the
biscuit 362.7.12 Ratings of the factors which influence them the choice of biscuits
372.7.13 The frequency of purchase of biscuits 38
2.7.14 Ratings of the various features of Britannia Marie gold biscuits with
respect to taste39
2.7.15 Ratings of the various features of Britannia Marie gold biscuits with
respect to price40
2.7.16 Ratings of the various features of Britannia Marie gold biscuits with
respect to quality41
2.7.17 Ratings of the various features of Britannia Marie gold biscuits with
respect to package42
2.7.18 Ratings of the various features of Britannia Marie gold biscuits with
respect to brand image43
2.7.19 Ratings of the various features of Britannia Marie gold biscuits with
respect to others44
2.7.20 Pack size preferred in buying Britannia Marie gold biscuits 452.7.21 Whether Britannia Marie gold biscuits are easily available 468
CHAPTER – 11.1 INTRODUCTION
All business concerns conduct market research to improve their business in all
aspects. Having the same in view Britannia Industries Limited was into market study on
wafer biscuits in Chennai city.Britannia Industries Limited wanted to identify the sales of wafer
biscuits atChennai city with regard to customers, so they decided to conduct
market study and
improve the demand for wafer biscuits. To fulfill the purpose of this market study the
survey are conducted towards the customers over there. This attempt of market study
will surely help BIL to improve their sales at Chennai city buy taking appropriate,
decisions and to develop strategies.The producer’s attempts to find out people who will pay for his product
and buythem for his own satisfaction from the products while manufactures
make decision of thescope for the products, they satisfy consumer wants and needs.
Advertisers try tounderstand basic forces that cost human behavior with in the market.
They get suchknowledge from psychology and sociology for their desires. This is called
consumerbehavior, which is used to construct models by which marketing people
plan strategies,later on, these are used in advertising campaign.
Consumer behavioral deals with the characteristics of human behavior.
Marketing belongs to human behavior as it deals with buying decision; Advertising is a
socio – psychological art. The advertisement writer like a teacher has to study psychology
behind human behavior in respect of satisfaction of his wants. Harlow Gale thought
advertising a new field for psychological work and of great and increasing importance.
Consumer psychological are interested in the behavior of masses of consumer rather than
the behavior patterns of single individuals.There are four principles areas of interest,
1. Decision making in the market place.2. Changes in attitudes & behavior of consumers.
3. Influence of time & uncertainty.
4. Studies of group belonging.9 Many models have been developed on consumer behavior. Thus
here is stimulusresponse model coming from the behaviorist, “Exposure advertising
virtually guarantorswhether consumer will respond in a manner desired by the advertisers,
even if this isagainst the consumer’s best interests”. Thus the consumer can be
manipulated by the willof the seller by this is not the case now if it was even true before 20 years.
1.2 PROFILE OF BISCUIT INDUSTRYIn India the biscuit industry started in the middle of the 19
t h century. In 1887, the
first bakery was set up in India. There were four factories during Second World War.
The Second World War helped the industry to prosper with an increase for its products
both for military and civilian consumption.After the Second World War the biscuit production in India increased
rapidly.Now there are more than 31 units in the organized sectors but also there
are maybe smallscale sectors involved in biscuit productions.Biscuit making is made adaptable to small-scale units because of the
simplemanufacturing process, easy availability of raw materials and the low
cost involved in itsproduction. The ingredients that go in its production are wheat flour,
sugar, leaveningagents, permitted emulsifier, flavor and dough conditioners.
A survey conducted by the Institute of Industry and Market Research in New
Delhi, indicated that during 1973-1974 there were about 180 units, manufacturing
biscuits in the factory sector and about 3000 units in the family sector. By now it should
be twice the figure.
The well-known companies which produce biscuits are:ß AUROFOODS (TRUE)
ß BAKEMAN’Sß BRITANNIA INDUSTRIES LIMITED
ß KELLOG’Sß KWALITY
ß NUTRINE (SARA LEE)ß PARLE
ß SMITHKLINE BEECHAM10EXPORT PERFORMANCE
India exports biscuits to the Middle East, African and other neighboring countries.
There is stiff competition from European countries. U.K. has been the major competitor
as far as India in concerned.IMPORT PERFORMANCE
Import of biscuits by general trade has been discontinued since years. However
some quantity of biscuits are imported only by military and for other special purpose.
The major countries from which these are imported are West Germany, Netherlands and
U.S.A.1.3 COMPANY PROFILE
Britannia Industries Limited has deep rooted its name firmly in each andeveryone’s mind and heart, the company deals with producing wide
range of biscuits,cakes, dairy products and snacks. The corporate identity – “Eat
Healthy, Think Better”proves its quality.
A humble beginning was made to manufacture biscuits in a small house in central
Calcutta with an investment of Rs. 295. In the year 1918 Gupta Brothers took
Mr.C.H.Holmes, an English businessman in Calcutta, as a partner. The Britannia Biscuit
Company Limited (BBCo.) was registered on March 21, 1918 and brand name
‘Britannia’ was launched.In the year 1979 they changed the company name as Britannia Industries
Limited(BIL). In 1968 BIL celebrated Golden Jubilee and in 1992 BIL
celebrated its PlatinumJubilee. During the World Cup of Cricket ’99, “The single biggest
promotion ever inIndian marketing history” was undertaken by BIL. BIL is given ISO
9002 for its qualityproduction.11
BIL have reduced their exports. They export only biscuits to Russia and other
African countries. In 1998, company’s sales were Rs.1000 crores. Britannia now
produces over 1,00,000 tones of biscuits every year and over 60,000 tones of bread and
cake, with 4 production units, over 5800 employees and 21 franchise manufacturers, and
of course an excellent distribution network of more than 34 warehouse and more than
2,00,000 retail outlets. BIL produces 28 brands of bakery biscuits, breads, 8 varieties of
cakes, 5 brands of dairy products and 8 brands of snacking.In 1977, the Government reserved the industry for small-scale sector,
whichconstrained Britannia's growth. Britannia adopted a strategy of
engaging contract packers(CP) in the small-scale sector. This led to several inefficiencies at the
operating level. InApril ’97, the Government de reserved the biscuit sector from small
scale. Britannia hasexpanded captive manufacturing facilities and has modernized and
upgraded its facilitiesin the last five years. It has also forayed into the Dairy Business with the
· Good day - Pista Badam· Good day - Coconut Crunchees
· Good day - Choco Nut1.5 OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVE1. To find the consumer buyer behaviour of Britannia Marie Gold
biscuits.SECONDARY OBJECTIVE
The secondary objective of the study is given as follows: To identify the awareness about Britannia Marie Gold biscuits available
in the
market. To find the reason for buying the biscuit & their opinion about the
Britannia MarieGold Biscuits.
To identify the satisfaction level of the various factors of Marie Gold biscuits.
To know the pack size preferred by the consumers.13 1.6 SCOPE OF THE STUDY
The study is conducted towards customers at Chennai City.· To know their preferable taste in Marie biscuits
· To know the level of awareness about the various brands of Marie biscuits and
also about the choice and frequency of preference of Marie biscuits.· To know the satisfaction level of perception regarding the quality of
variousMarie biscuits.
· To know the problems in identifying the Marie biscuits in the shop.1.7 REVIEW OF LITERATURE
The purpose of services of literature is to find out similar situational variables and
their appropriateness that is situated for present day situation. It also indicates various
attitude of dealer with regard to other similar products. In order to make more relevant
the review of literatures from both Indian and Foreign Studies been reviewed.
1.7.1 CREATING NEW MARKET SPACEAccording to Macborgne Renel er-al, in his article entitled “Creating
New MarketSpace” most companies focus on marketing and beating their rivals. As
a result theirstrategies tend to take on similar dimensions.
The authors say innovative company breaks free from competitions by staking out
fundamentally new market space that is by creating products services for which there are
no competitions.
According to the managers, they must look not only across the conventional
boundaries but also the territory that represent real value on innovations.14
1.7.2 CROSS PROMOTION: MARKETING FOR TODAY & TOMORROW
According to Kene Anders et-al; in his article states that cross promotion is when
two (or) more groups (business, government, non-profit) with shared market and value
join forces to reach their kind of customer more memorably, efficiently, frequently and
credibly. According to authors it has following benefit, save money, stabilizes
cash flow, andbuilds credibility make news and build right spirit. Cross promotions is
not limited tosize and typed of company. One examples is United Airlines began
serving Starbucksadvertised their fact at their outlet and united airline spread the message
through in flightmagazine.
According to them, in today’s global competitive area the ability to join hands with
like minded people to reach similar customers in cost effective manner could prove to be
difference between losing & winning.1.7.3 STRATEGIC COMPETITION
According to Dr. Rajan Das in his article “INTO THE FUTURE” strategically (1997)
states that under standing competition and competitive behaviour in strategic terms is
extremely important.Hamel and Prahlad observe that there are three levels of competition viz.· Competition for intellectual leadership to get new ideas that may create
newadvantages or new basis for competition.
· Competition for translating such new ideas into commercial products and services
faster than other.15· Competition for market share. According to these two authors the
competition formarket share cannot to won unless formidable advantages are created at
the firsttwo levels. Ability to see customer needs and competition beyond
present servedmarket and also assess the capabilities at competition to come up with
breakthrough products and services that may alter future competitive is a key
requisitefor understanding strategic competition.
1.7.4 MARKETING MIXAccording to Adriyan Payan, The marketing mix concept is a well-
establishedtool used as a structured by marketers. It consists of the various
elements of a marketingprogramme which need to be considered in order to successfully
implement themarketing strategy and positioning in the company’s marketers.
Traditionally, most marketers have considered four basic elements of a marketing
mix: product, price, promotion and place. But as for as concerned product, price,
promotion are taken into consideration, regarding project.1.7.4.1 PRODUCT
According to Harsh V. Verma,, the term the ‘product’ generally conjures up the
vision a car, a pen, a racquet or anything that is tangible. It is very rarely that one thinks
of ‘product’ in a service firm, for service business is an inward-looking, activity-basedclassification.
“A product is anything that can be offered to a market for attention, acquisition,
use or consumption that might satisfy a want or need. It includes physical objects,
person, places organization and ideas”. Product definition has an implicit reference to a
market and a need. The physical character of goods is useful in convincing the market
that the said product is capable of satisfying a need and is superior to competition.
A product generally, has four levels, viz, generic, expected, augmented and
potential.161. The Generic Product: It refers to the rudimentary substantive thing.
It isthe product at its basic level.
2. The Expected Product: It refers to the customer’s minimum set ofexpectation from an expectations from a product.
3. The Augmented Product: It refers to offerings in addition to what thecustomer expects.
4. The Potential Product: It refers to doing everything potentially feasible to
hold and attract the customer.1.7.4.2 PRICE
Price is the most important thing for the product. Generally for any type of
price fixing the manufactures has to aware of his production cost and adds some
margin to that production cost they can fire the prices.Price = Cost of the Production + Margin [Equation
1.1]1.7.4.3 PRICING
Pricing plays a pivotal part in the marketing mix because pricing attacks revenues
to the business. Pricing decisions are important in determining the value for the customer
and play a role in the building of an image for the service. Price also gives apperception
of quality. Pricing decisions are generally taken by adding a percentage mark up on cost.
Service firms, at least within deregulated markets, need to use pricing more strategically
to help gain competitive advantage.Pricing decisions will affect the channel members including suppliers,
salespeople, distributors, competitors and customers.17
Pricing has some objectives like,· Survival
· Profit maximization· Sales maximization
· Prestige· Return on investment
1.7.4.4 PRICING METHODSPricing has some methods, they are as fallows.
i) Cost-plus pricing: Here, a specific percentage mark up is sought.ii) Rate of return pricing: Here, the firm wants to achieve a given rate of
returnon investment or assets. This is sometime called ‘ target return’ pricing.iii) Competitive parity pricing: Here, the price is determined considering
theCompetitive prices in the market.
iv) Loss leading pricing: Here, the price is set on a short – term basis, to establish
a position in the market or to provide an opportunity.v) Value-based pricing: Here, the price is determined on the service’s
perceivedValue to a given customer segment.
vi) Relationship pricing: Here, the price is determined on consideration of future
potential profit streams over the lifetime of customers.181.7.4.5 PROMOTION
1.7.4.5.1 IMPORTANCE OF PROMOTIONThe marketing mix activities of product planning, pricing and
distribution are
performed mainly with in the organization or between the organization and its marketing
partners. However with promotional activities the firm communicates directly with
potential customers.Promotion is the element in an organization marketing mix that served
to informpersuade and remained the market of the organization and its products.
Basicallypromotion is an attempt to influence whether a particular promotional
activity is designedto inform pursued or remained the ultimate objective is to Influence the
recipient feelingsbeliefs or behaviors. In our socio economic system this is not only
acceptable. It isessential one of the attributes of a free society is the right of use
combination as a tool ofinfluence.
1.7.4.5.2 PROMOTIONAL METHODSThe promotional mix is the combination of personal selling advertising,
sales,promotion, publicity and public relations that helps an organization
achieve its marketingobjectives. These five methods of promotion defined as follows.
· PERSONAL SELLING:Personal selling is the presentation of a product to a prospective
customer by arepresentative of the selling organization. Across all business more
money is spent onpersonal selling than any other form of promotion.
· ADVERTISING:19Advertising is any paid form of impersonal mass communication in
which thesponsor is clearly identified. The common forms are broad cost and print
media using.· SALES PROMOTION:
Sales promotion is designed to supplement advertising and co-ordinate personal
selling includes sales promotion are screen activities as contents for sales people and
consumers trade shows in store displays, samples.Sales promotion is one of the most commonly used in the marketing
vocabulary.We define sales promotional activities that are intended to stimulate
customers demandand improve the marketing performance of sellers. Sales promotion
includes coupons,premiums, displays and samples.
Sales promotion activities may be conducted by producers or middlemen. The
target for producer’s sales promoters may be middleman or end users-house holds.
Business or the producers own sales force middleman direct sales promotion at his sales
people or prospects further down the channel of distribution.Sales promotion is different form advertising and personal selling. But
all theseactivities often are interacted. In fact a major function of sales
promotion is to serve asbridge advertising and personal selling to supplement and co-ordinate
efforts on thesetwo areas.
Recently sales promotion has been fastest growing method of promotion with
rupees being shifted from advertising total annual expenditures for sales promotion are
estimated to parallel or even exceed those for advertising. Sales promotion is also being
integrated into the total marketing strategy. In many firms, it’s being introduced at the
conception or a promotion campaign.20Several factors in the marketing environment contribute to the surveying
popularity of sales promotion.
Short run orientation:Sales promotions such as campaign and trade allowance produce quicker
moreasurable sales results. How ever, this strategy agree that these
intermediate benefits comeat he expense of building a strong brand in case in consumers minds and
condition.Buyers to expect incentives. Thus, they feel an over emphasis on sales
promotions willunder mine a product future.
· PUBLICITY:Publicity is similar to advertising in that it is a mass communication type
ofdemand stimulations. Publicity usually consists of favorable means
presentationpublicity for a product organization presented in any media. The unique
features ofpublicity are that it is not paid for and it has the credibility of editorial
material.Organizations frequently provide the material for publicity in the form
of news, pressconferences and photographs.
· PUBLIC RELATIONS:Public relations are planned effort by an organization to influence the
attitudesand opinions of a specific group.
The target may be customer, stockholders, a government agency are special
interest group. Promotion is a critical ingredient of many marketing strategies. Product
differentiation market segmentation, trading up and trading down and branding all
enquires effective promotion.211.8 LIMITATIONS OF THE STUDY
The study has the following constraints¨ The sample sizes are restricted to 200 customers, due to time and
financial
constraints.¨ Convenience sampling has its own limitations, being biased and
unsatisfactory.¨ 200 customers sample cannot be generalized to entire universe.
¨ The study is conducted considering the prevailing condition which aresubjected to change in future.
¨ Also less cooperation from the respondents.CHAPTER – 2
2.1 RESEARCH METHODOLOGYA research cannot be conducted abruptly. Researcher has to proceed
systematically in the already planned direction with the help of a number of steps in
sequence. To make the research systemized the researcher has to adopt certain methods.
The methods adopted by the researcher for completing the project are called ResearchMethodology.
In other words, Research Methodology is simply the plan of action for a research
which explains in detail how data is to be collected, analyzed and interpreted.
Data’s becomes information only when a proper methodology is adopted. Thus
we can say Methodology is a tool which process the date to a reliable information. The
present chapter attempt to highlight the research methodology adopted in this project.
2.2 RESEARCH DESIGNA research design is a arrangement of conditions for collection and
analysis ofdata in a manner that aims to combine relevance to the research purpose
with economy in22procedure. Out of the research design said above the research design
took for the studywas “Descriptive Research Design”.
2.3 DATA COLLECTION METHODS
In this study the primary data collection method have been used to collect data.
Now let us see about the primary data collection method Primary Data Collection
Primary data are those which are collected a fresh and for the first time and thus
happen to be original in character.Primary data collection is nothing but the data that is directly collected
from thepeople by the researcher himself. Primary data may pertain to
demographic / socioeconomic characteristics or the customers, altitudes and opinions of
people, theirawareness and knowledge and other similar aspects.
In this study Primary Data collection method has helped the researcher to a great
extent in arriving at the results. METHODS OF PRIMARY DATA COLLECTIONThere are three methods of collecting Primary data
1. Survey2. Observation3. Experiments
Among these, the method adopted for the study was Survey MethodSurvey Method
Survey method is the systematic gathering of data from the respondents survey is
the most commonly used method of primary data this is widely used because of its
Extreme FlexibilityReliability
Easy Understandability23The main purpose of survey is facilitate understanding or enable
prediction ofsome aspects of the population being surveyed
SAMPLING INSTRUMENTThe instrument used to collect data for the study was the structured
questionnaire.
METHODS OF SAMPLINGIn this study non probability sampling has been adopted. Under the non
probability sampling convenience sampling has been taken for the purpose of study.
CONVENIENCE SAMPLINGThe sampling units are chosen primarily on the basis of convenience to
theresearcher is known as Convenience Sampling.
SAMPLE SIZE [PILOT STUDY]One can say that the sample must be an optimum size that it is should be
neither excessively large nor too small. Technically, the sample size should be large
enough to give a confidence interval of desired width and as such the size of the sample
must be chosen by logical process before sample is taken from the universe.
In order to extract much feasible results through the study, a sample sizeof 200 has been taken for the study.24
2.4 SAMPLING SCHEME : Sampling design of the study consist of two steps
a) Selection of the study area.b) Selection of the sample size
a) SELECTION OF THE STUDY AREA : The study was full and full in house project, so the study
area wascomplete chennai Lanson Toyota showroom.b) SELECTION OF THE SAMPLE SIZE:
Since the population is large, to anlayze the customer perception
towards the service quality a sample of 300 is selected. The customer was selected on
the basis of convenience sampling technique.2.5 QUESTIONNAIRE DESIGN
The required information was collected through a well-structured
questionnaire.The structured questionnaire of this study included the following
a) Closed ended questionb) Open ended question
a) Closed ended question; In this type both questions and its respective answers are
arranged in astructured pattern. This includes.
i) Rating Scaleii) Dichotomous Questions
b) Rating Scale : These type of question helps to rate the customer perception
The no of question in the study are from 1 to 15. Dichotomous Question:25
Dichotomous Question allows for only two possible answers “yes” and“no”.
These type of question is the study are 16 & 18.2.6 STATISTICAL TOOLS USED FOR ANALYSIS
i WEIGHTED AVERAGE METHOD In this method the issue price is calculated by dividing the value
of materials inhand by the no of units in hand. Average price to be charged to issue will
continue to bethe same until a new purchase is made which will necessitate
computation of a new average. ii CONFIDENCE LEVEL & SIGNIFICANCE LEVEL
The confidence level or reliability is the expected percentage of times that
the actual value will fall within the stated precision limits. Thus, we take a confidence
level of 95%, then we mean that there are 95 chances in 100 (or .95 in 1) that the sample
results represent the true condition of the population within a specified precision range
against 5 chances in 100 (or .05 in 1) that it does not.Iii ONE SAMPLE RUN TEST
TO DETERMINE THE RANDOMNESS OF THE SELECTED SAMPLES
H0 : Samples are randomly chosen
H1 : Samples are not randomly chosen262.7 ANALYSIS & INTERPRETATION
TABLE 2.7.1CLASSIFICATION ON THE BASIS OF GENDER
S.NO GENDERNO OF
RESPONDENTSPERCENTAGE
(%)1. MALE 148 74
2. FEMALE 52 26TOTAL 200 100
SOURCE: PRIMARY DATAINFERENCE:
Most of the respondents are male in the classification27TABLE 2.7.2
CLASSIFICATION ON THE BASIS OF AGES.NO
AGE NO OF RESPONDENTSPERCENTAGE
(%)1. >20 100 50
2. 21 – 30 66 333. 31 – 40 34 17TOTAL 200 100
SOURCE: PRIMARY DATAINFERENCE:
Most of the respondents are in the age group of less than 20 & some of them in the age
group of 21 – 30.CHART 2.2.2 CLASSIFICATION ON THE BASIS OF AGE
503317010
2030405060
>20 21 – 30 31 – 40 AGE
NO. OF RESPONDENTSTABLE 2.7.3CLASSIFICATION OF OCCUPATION
S.NOOCCUPATION NO. OF
RESPONDENTSPERCENTAGE (%)1 STUDENT 80 40
2 EMPLOYEE 40 203 BUSINESS 20 10
4 PROFESSIONAL 14 75 HOUSEWIFE 46 23
TOTAL 200 100SOURCE: PRIMARY DATA
INFERENCE:Most of the consumers are Students and Housewife
804020144601020304050607080
NO. OF RESPONDENTS
STUDENT PROFESSIONALOCCUPATION
CHART 2.2.3CLASSIFICATION OF OCCUPATIONii
TABLE 2.7.4AWARENESS ABOUT BRITANNIA MARIE GOLD BISCUITS
S.NO AWARENESS NO OF RESPONDENTSPERCENTAGE
(%)1. YES 200 100
2. NO - -TOTAL 200 100
SOURCE: PRIMARY DATAINFERENCE:
All the respondents are aware of Britannia Marie Gold BiscuitsCHART 2.2.4
AWARENESS ABOUT BRITANNIA MARIE GOLD
BISCUITSY E S
1 0 0 %N O0 %
Y E S N OiiiTABLE 2.7.5
MODE OF AWARENESS ABOUT BRITANNIA MARIE GOLD BISCUITS
ABSTRACTEvery organization envisioned at maximizing the productivity and the
profit neverfails to show immense interest on knowing their customer requirements.
Fulfilling theneeds and satisfying the customers becomes very much essential, since a
satisfiedcustomer becomes an unpaid advertisement for the company. It is
equally important tosatisfy the dealers and retailers if the company is in the business of Fast
MovingConsumer Goods.
This project is a study on consumer buying behavior on Britannia Marie gold
biscuits. Through this study work, major brand leaders in the market, the reason for
which a particular brand is preferred and the satisfaction level are identified.
A questionnaire was set containing appropriate questions and survey was made on
200 respondents belonging to different categories. The statistical tools such as run test,
weighted average, Percentage method and confidence interval was used.From the survey it is identified that most of the customers are not
changing thebrand due to high consumer preference and brand image .They are
satisfied servicesprovided by the company. So the company must improve the quality of
their products andby making good relationship with the customers to increase its market
share.ACKNOWLEDGEMENT
I am very indebted to the Chairman, Thiru.T.R.Pachamuthu, the
Principal Dr. Venkatramani, , the Head of the Department Dr. Jayashree Suresh
M.B.A, Ph.D, and the staffs of the Department of Management Studies, S.R.M. Institute
of management for giving me valuable suggestions in carrying out this project.
I wish to thank my lecturer Mr. T.Ramachandran M.com, M.PhilM.B.A, for guiding me to take up the project and for enthusiasm shown
towards thisproject. His effort in establishing a methodical work routing has lead to
the successfulcompletion of the project.
I am extremely thankful to Mr.Senthil Ramaswamy Deputy General Manager
Sales(Chennai City) KALYANI AGENCIES[AUTHORISED WHOLESALERS FOR :
BRITANNIA INDUSTRIES LTD ], for having given me opportunity to associate myself
with the Organisation.Last but not least, I would like to thank my friends and parents for just
being there whenever I needed their support.(PRAKASH.G)4
LIST OF CONTENTCHAPTER NO TITLE PAGE NO
CHAPTER-11.1 INTRODUCTION 1
1.2 PROFILE OF BISCUIT INDUSTRY 31.3 COMPANY PROFILE 51.4 PRODUCT PROFILE 7
1.5 OBJECTIVES 81.6 SCOPE OF THE STUDY 9
1.7 REVIEW OF LITERATURE 101.8 LIMITATIONS 18
CHAPTER – 22.1 RESEARCH METHODOLOGY 19
2.2 RESEARCH DESIGN 192.3 DATA COLLECTION METHODS 20
2.4 SAMPLING SCHEME 232.5 QUESTIONNAIRE DESIGN 24
2.6 STATISTICAL TOOLS USED FOR ANALYSIS 252.72.8
ANALYSIS AND INTERPRETATIONSTATISTICAL TEST
26475
CHAPTER-33.1 FINDINGS
523.2 SUGGESTION
533.3 CONCLUSION
553.4 APPENDIX
563.5 BIBLIOGRAPHY
586TableNo.
Titles PageNo.
2.7.1 Classification on the basis of gender 262.7.2 Classification on the basis of age 27
2.7.3 Classification of occupation 282.7.4 Awareness about Britannia Marie gold biscuits 29
2.7.5 Mode of awareness about Britannia Marie gold biscuits 302.7.6 Whether they buy Britannia Marie gold biscuits 312.7.7 Reason for buying Britannia Marie gold biscuits 32
2.7.8 No of packs do they buy in one month 332.7.9 Opinion about the price of the biscuits 34
2.7.10 Whether they are interested to buy with current price 352.7.11 Ratings of the opinion that attracts the customers to buy the
biscuit 36
2.7.12 Ratings of the factors which influence them the choice of biscuits 37
2.7.13 The frequency of purchase of biscuits 382.7.14 Ratings of the various features of Britannia Marie gold biscuits
withrespect to taste
392.7.15 Ratings of the various features of Britannia Marie gold biscuits
withrespect to price
402.7.16 Ratings of the various features of Britannia Marie gold biscuits
withrespect to quality
412.7.17 Ratings of the various features of Britannia Marie gold biscuits
withrespect to package
422.7.18 Ratings of the various features of Britannia Marie gold biscuits
withrespect to brand image
432.7.19 Ratings of the various features of Britannia Marie gold biscuits
withrespect to others
442.7.20 Pack size preferred in buying Britannia Marie gold biscuits 452.7.21 Whether Britannia Marie gold biscuits are easily available 467
ChartNo.
Titles PageNo.
2.7.1 Classification on the basis of gender 262.7.2 Classification on the basis of age 27
2.7.3 Classification of occupation 282.7.4 Awareness about Britannia Marie gold biscuits 29
2.7.5 Mode of awareness about Britannia Marie gold biscuits 302.7.6 Whether they buy Britannia Marie gold biscuits 312.7.7 Reason for buying Britannia Marie gold biscuits 32
2.7.8 No of packs do they buy in one month 332.7.9 Opinion about the price of the biscuits 34
2.7.10 Whether they are interested to buy with current price 352.7.11 Ratings of the opinion that attracts the customers to buy the
biscuit 362.7.12 Ratings of the factors which influence them the choice of biscuits
372.7.13 The frequency of purchase of biscuits 38
2.7.14 Ratings of the various features of Britannia Marie gold biscuits with
respect to taste39
2.7.15 Ratings of the various features of Britannia Marie gold biscuits with
respect to price40
2.7.16 Ratings of the various features of Britannia Marie gold biscuits with
respect to quality41
2.7.17 Ratings of the various features of Britannia Marie gold biscuits with
respect to package42
2.7.18 Ratings of the various features of Britannia Marie gold biscuits with
respect to brand image43
2.7.19 Ratings of the various features of Britannia Marie gold biscuits with
respect to others44
2.7.20 Pack size preferred in buying Britannia Marie gold biscuits 452.7.21 Whether Britannia Marie gold biscuits are easily available 468
CHAPTER – 11.1 INTRODUCTION
All business concerns conduct market research to improve their business in all
aspects. Having the same in view Britannia Industries Limited was into market study on
wafer biscuits in Chennai city.Britannia Industries Limited wanted to identify the sales of wafer
biscuits atChennai city with regard to customers, so they decided to conduct
market study andimprove the demand for wafer biscuits. To fulfill the purpose of this
market study thesurvey are conducted towards the customers over there. This attempt of
market studywill surely help BIL to improve their sales at Chennai city buy taking
appropriate,decisions and to develop strategies.
The producer’s attempts to find out people who will pay for his product and buy
them for his own satisfaction from the products while manufactures make decision of the
scope for the products, they satisfy consumer wants and needs. Advertisers try to
understand basic forces that cost human behavior with in the market. They get such
knowledge from psychology and sociology for their desires. This is called consumer
behavior, which is used to construct models by which marketing people plan strategies,
later on, these are used in advertising campaign. Consumer behavioral deals with the characteristics of human
behavior.Marketing belongs to human behavior as it deals with buying decision;
Advertising is asocio – psychological art. The advertisement writer like a teacher has to
study psychology
behind human behavior in respect of satisfaction of his wants. Harlow Gale thought
advertising a new field for psychological work and of great and increasing importance.
Consumer psychological are interested in the behavior of masses of consumer rather than
the behavior patterns of single individuals.There are four principles areas of interest,
1. Decision making in the market place.2. Changes in attitudes & behavior of consumers.
3. Influence of time & uncertainty.4. Studies of group belonging.9
Many models have been developed on consumer behavior. Thus here is stimulus
response model coming from the behaviorist, “Exposure advertising virtually guarantors
whether consumer will respond in a manner desired by the advertisers, even if this is
against the consumer’s best interests”. Thus the consumer can be manipulated by the will
of the seller by this is not the case now if it was even true before 20 years.1.2 PROFILE OF BISCUIT INDUSTRY
In India the biscuit industry started in the middle of the 19t h
century. In 1887, thefirst bakery was set up in India. There were four factories during
Second World War.The Second World War helped the industry to prosper with an increase
for its productsboth for military and civilian consumption.
After the Second World War the biscuit production in India increased rapidly.
Now there are more than 31 units in the organized sectors but also there are maybe smallscale sectors involved in biscuit productions.
Biscuit making is made adaptable to small-scale units because of the simple
manufacturing process, easy availability of raw materials and the low cost involved in its
production. The ingredients that go in its production are wheat flour, sugar, leavening
agents, permitted emulsifier, flavor and dough conditioners.A survey conducted by the Institute of Industry and Market Research in
NewDelhi, indicated that during 1973-1974 there were about 180 units,
manufacturingbiscuits in the factory sector and about 3000 units in the family sector.
By now it shouldbe twice the figure.
The well-known companies which produce biscuits are:ß AUROFOODS (TRUE)
ß BAKEMAN’Sß BRITANNIA INDUSTRIES LIMITED
ß KELLOG’Sß KWALITY
ß NUTRINE (SARA LEE)ß PARLE
ß SMITHKLINE BEECHAM10EXPORT PERFORMANCE
India exports biscuits to the Middle East, African and other neighboring countries.
There is stiff competition from European countries. U.K. has been the major competitor
as far as India in concerned.IMPORT PERFORMANCE
Import of biscuits by general trade has been discontinued since years. However
some quantity of biscuits are imported only by military and for other special purpose.
The major countries from which these are imported are West Germany, Netherlands and
U.S.A.1.3 COMPANY PROFILE
Britannia Industries Limited has deep rooted its name firmly in each and
everyone’s mind and heart, the company deals with producing wide range of biscuits,
cakes, dairy products and snacks. The corporate identity – “Eat Healthy, Think Better”
proves its quality.A humble beginning was made to manufacture biscuits in a small house
in centralCalcutta with an investment of Rs. 295. In the year 1918 Gupta Brothers
tookMr.C.H.Holmes, an English businessman in Calcutta, as a partner. The
Britannia BiscuitCompany Limited (BBCo.) was registered on March 21, 1918 and brand
name‘Britannia’ was launched.
In the year 1979 they changed the company name as Britannia Industries Limited
(BIL). In 1968 BIL celebrated Golden Jubilee and in 1992 BIL celebrated its Platinum
Jubilee. During the World Cup of Cricket ’99, “The single biggest promotion ever in
Indian marketing history” was undertaken by BIL. BIL is given ISO 9002 for its quality
production.11BIL have reduced their exports. They export only biscuits to Russia and
otherAfrican countries. In 1998, company’s sales were Rs.1000 crores.
Britannia nowproduces over 1,00,000 tones of biscuits every year and over 60,000 tones
of bread andcake, with 4 production units, over 5800 employees and 21 franchise
manufacturers, andof course an excellent distribution network of more than 34 warehouse
and more than2,00,000 retail outlets. BIL produces 28 brands of bakery biscuits,
breads, 8 varieties ofcakes, 5 brands of dairy products and 8 brands of snacking.
In 1977, the Government reserved the industry for small-scale sector, which
constrained Britannia's growth. Britannia adopted a strategy of engaging contract packers
(CP) in the small-scale sector. This led to several inefficiencies at the operating level. In
April ’97, the Government de reserved the biscuit sector from small scale. Britannia has
expanded captive manufacturing facilities and has modernized and upgraded its facilities
in the last five years. It has also forayed into the Dairy Business with the launch of
· Good day - Coconut Crunchees· Good day - Choco Nut
1.5 OBJECTIVES OF THE STUDYPRIMARY OBJECTIVE
1. To find the consumer buyer behaviour of Britannia Marie Gold biscuits.
SECONDARY OBJECTIVEThe secondary objective of the study is given as follows:
To identify the awareness about Britannia Marie Gold biscuits available in the
market. To find the reason for buying the biscuit & their opinion about the
Britannia MarieGold Biscuits.
To identify the satisfaction level of the various factors of Marie Gold biscuits.
To know the pack size preferred by the consumers.13 1.6 SCOPE OF THE STUDY
The study is conducted towards customers at Chennai City.· To know their preferable taste in Marie biscuits
· To know the level of awareness about the various brands of Marie biscuits and
also about the choice and frequency of preference of Marie biscuits.· To know the satisfaction level of perception regarding the quality of
variousMarie biscuits.
· To know the problems in identifying the Marie biscuits in the shop.1.7 REVIEW OF LITERATURE
The purpose of services of literature is to find out similar situational variables and
their appropriateness that is situated for present day situation. It also indicates various
attitude of dealer with regard to other similar products. In order to make more relevant
the review of literatures from both Indian and Foreign Studies been reviewed.
1.7.1 CREATING NEW MARKET SPACEAccording to Macborgne Renel er-al, in his article entitled “Creating
New MarketSpace” most companies focus on marketing and beating their rivals. As
a result theirstrategies tend to take on similar dimensions.
The authors say innovative company breaks free from competitions by staking out
fundamentally new market space that is by creating products services for which there are
no competitions.According to the managers, they must look not only across the
conventionalboundaries but also the territory that represent real value on
innovations.141.7.2 CROSS PROMOTION: MARKETING FOR TODAY &
TOMORROWAccording to Kene Anders et-al; in his article states that cross promotion
is whentwo (or) more groups (business, government, non-profit) with shared
market and valuejoin forces to reach their kind of customer more memorably, efficiently,
frequently andcredibly.
According to authors it has following benefit, save money, stabilizes cash flow, and
builds credibility make news and build right spirit. Cross promotions is not limited to
size and typed of company. One examples is United Airlines began serving Starbucks
advertised their fact at their outlet and united airline spread the message through in flight
magazine. According to them, in today’s global competitive area the ability to
join hands with
like minded people to reach similar customers in cost effective manner could prove to be
difference between losing & winning.1.7.3 STRATEGIC COMPETITION
According to Dr. Rajan Das in his article “INTO THE FUTURE” strategically (1997)
states that under standing competition and competitive behaviour in strategic terms is
extremely important.Hamel and Prahlad observe that there are three levels of competition viz.· Competition for intellectual leadership to get new ideas that may create
newadvantages or new basis for competition.
· Competition for translating such new ideas into commercial products and services
faster than other.15· Competition for market share. According to these two authors the
competition formarket share cannot to won unless formidable advantages are created at
the firsttwo levels. Ability to see customer needs and competition beyond
present servedmarket and also assess the capabilities at competition to come up with
breakthrough products and services that may alter future competitive is a key
requisitefor understanding strategic competition.
1.7.4 MARKETING MIXAccording to Adriyan Payan, The marketing mix concept is a well-
establishedtool used as a structured by marketers. It consists of the various
elements of a marketingprogramme which need to be considered in order to successfully
implement themarketing strategy and positioning in the company’s marketers.
Traditionally, most marketers have considered four basic elements of a marketing
mix: product, price, promotion and place. But as for as concerned product, price,
promotion are taken into consideration, regarding project.1.7.4.1 PRODUCT
According to Harsh V. Verma,, the term the ‘product’ generally conjures up the
vision a car, a pen, a racquet or anything that is tangible. It is very rarely that one thinks
of ‘product’ in a service firm, for service business is an inward-looking, activity-basedclassification.
“A product is anything that can be offered to a market for attention, acquisition,
use or consumption that might satisfy a want or need. It includes physical objects,
person, places organization and ideas”. Product definition has an implicit reference to a
market and a need. The physical character of goods is useful in convincing the market
that the said product is capable of satisfying a need and is superior to competition.
A product generally, has four levels, viz, generic, expected, augmented and
potential.161. The Generic Product: It refers to the rudimentary substantive thing.
It isthe product at its basic level.
2. The Expected Product: It refers to the customer’s minimum set ofexpectation from an expectations from a product.
3. The Augmented Product: It refers to offerings in addition to what thecustomer expects.
4. The Potential Product: It refers to doing everything potentially feasible to
hold and attract the customer.1.7.4.2 PRICE
Price is the most important thing for the product. Generally for any type of
price fixing the manufactures has to aware of his production cost and adds some
margin to that production cost they can fire the prices.Price = Cost of the Production + Margin [Equation
1.1]1.7.4.3 PRICING
Pricing plays a pivotal part in the marketing mix because pricing attacks revenues
to the business. Pricing decisions are important in determining the value for the customer
and play a role in the building of an image for the service. Price also gives apperception
of quality. Pricing decisions are generally taken by adding a percentage mark up on cost.
Service firms, at least within deregulated markets, need to use pricing more strategically
to help gain competitive advantage.Pricing decisions will affect the channel members including suppliers,
salespeople, distributors, competitors and customers.17
Pricing has some objectives like,· Survival
· Profit maximization· Sales maximization
· Prestige· Return on investment
1.7.4.4 PRICING METHODSPricing has some methods, they are as fallows.
i) Cost-plus pricing: Here, a specific percentage mark up is sought.ii) Rate of return pricing: Here, the firm wants to achieve a given rate of
returnon investment or assets. This is sometime called ‘ target return’ pricing.iii) Competitive parity pricing: Here, the price is determined considering
theCompetitive prices in the market.
iv) Loss leading pricing: Here, the price is set on a short – term basis, to establish
a position in the market or to provide an opportunity.v) Value-based pricing: Here, the price is determined on the service’s
perceivedValue to a given customer segment.
vi) Relationship pricing: Here, the price is determined on consideration of future
potential profit streams over the lifetime of customers.181.7.4.5 PROMOTION
1.7.4.5.1 IMPORTANCE OF PROMOTIONThe marketing mix activities of product planning, pricing and
distribution areperformed mainly with in the organization or between the organization
and its marketingpartners. However with promotional activities the firm communicates
directly withpotential customers.
Promotion is the element in an organization marketing mix that served to inform
persuade and remained the market of the organization and its products. Basically
promotion is an attempt to influence whether a particular promotional activity is designed
to inform pursued or remained the ultimate objective is to Influence the recipient feelings
beliefs or behaviors. In our socio economic system this is not only acceptable. It is
essential one of the attributes of a free society is the right of use combination as a tool of
influence.1.7.4.5.2 PROMOTIONAL METHODS
The promotional mix is the combination of personal selling advertising, sales,
promotion, publicity and public relations that helps an organization achieve its marketing
objectives. These five methods of promotion defined as follows.· PERSONAL SELLING:
Personal selling is the presentation of a product to a prospective customer by a
representative of the selling organization. Across all business more money is spent on
personal selling than any other form of promotion.· ADVERTISING:19
Advertising is any paid form of impersonal mass communication in which the
sponsor is clearly identified. The common forms are broad cost and print media using.
· SALES PROMOTION:Sales promotion is designed to supplement advertising and co-ordinate
personalselling includes sales promotion are screen activities as contents for sales
people andconsumers trade shows in store displays, samples.
Sales promotion is one of the most commonly used in the marketing vocabulary.
We define sales promotional activities that are intended to stimulate customers demand
and improve the marketing performance of sellers. Sales promotion includes coupons,
premiums, displays and samples.Sales promotion activities may be conducted by producers or
middlemen. Thetarget for producer’s sales promoters may be middleman or end users-
house holds.Business or the producers own sales force middleman direct sales
promotion at his salespeople or prospects further down the channel of distribution.
Sales promotion is different form advertising and personal selling. But all these
activities often are interacted. In fact a major function of sales promotion is to serve as
bridge advertising and personal selling to supplement and co-ordinate efforts on these
two areas.
Recently sales promotion has been fastest growing method of promotion with
rupees being shifted from advertising total annual expenditures for sales promotion are
estimated to parallel or even exceed those for advertising. Sales promotion is also being
integrated into the total marketing strategy. In many firms, it’s being introduced at the
conception or a promotion campaign.20Several factors in the marketing environment contribute to the surveying
popularity of sales promotion.Short run orientation:
Sales promotions such as campaign and trade allowance produce quicker more
asurable sales results. How ever, this strategy agree that these intermediate benefits come
at he expense of building a strong brand in case in consumers minds and condition.
Buyers to expect incentives. Thus, they feel an over emphasis on sales promotions will
under mine a product future.· PUBLICITY:
Publicity is similar to advertising in that it is a mass communication type of
demand stimulations. Publicity usually consists of favorable means presentation
publicity for a product organization presented in any media. The unique features of
publicity are that it is not paid for and it has the credibility of editorial material.
Organizations frequently provide the material for publicity in the form of news, press
conferences and photographs.· PUBLIC RELATIONS:
Public relations are planned effort by an organization to influence the attitudes
and opinions of a specific group.
The target may be customer, stockholders, a government agency are special
interest group. Promotion is a critical ingredient of many marketing strategies. Product
differentiation market segmentation, trading up and trading down and branding all
enquires effective promotion.211.8 LIMITATIONS OF THE STUDY
The study has the following constraints¨ The sample sizes are restricted to 200 customers, due to time and
financialconstraints.
¨ Convenience sampling has its own limitations, being biased andunsatisfactory.
¨ 200 customers sample cannot be generalized to entire universe.¨ The study is conducted considering the prevailing condition which are
subjected to change in future.¨ Also less cooperation from the respondents.
CHAPTER – 22.1 RESEARCH METHODOLOGY
A research cannot be conducted abruptly. Researcher has to proceedsystematically in the already planned direction with the help of a number
of steps insequence. To make the research systemized the researcher has to adopt
certain methods.The methods adopted by the researcher for completing the project are
called ResearchMethodology.
In other words, Research Methodology is simply the plan of action for a research
which explains in detail how data is to be collected, analyzed and interpreted.
Data’s becomes information only when a proper methodology is adopted. Thus
we can say Methodology is a tool which process the date to a reliable information. The
present chapter attempt to highlight the research methodology adopted in this project.
2.2 RESEARCH DESIGNA research design is a arrangement of conditions for collection and
analysis ofdata in a manner that aims to combine relevance to the research purpose
with economy in22procedure. Out of the research design said above the research design
took for the studywas “Descriptive Research Design”.
2.3 DATA COLLECTION METHODSIn this study the primary data collection method have been used to
collect data.Now let us see about the primary data collection method
Primary Data CollectionPrimary data are those which are collected a fresh and for the first time
and thushappen to be original in character.
Primary data collection is nothing but the data that is directly collected from the
people by the researcher himself. Primary data may pertain to demographic / socio
economic characteristics or the customers, altitudes and opinions of people, their
awareness and knowledge and other similar aspects.In this study Primary Data collection method has helped the researcher
to a greatextent in arriving at the results.
METHODS OF PRIMARY DATA COLLECTIONThere are three methods of collecting Primary data
1. Survey2. Observation3. Experiments
Among these, the method adopted for the study was Survey MethodSurvey Method
Survey method is the systematic gathering of data from the respondents survey is
the most commonly used method of primary data this is widely used because of its
Extreme FlexibilityReliability
Easy Understandability23The main purpose of survey is facilitate understanding or enable
prediction ofsome aspects of the population being surveyed
SAMPLING INSTRUMENTThe instrument used to collect data for the study was the structured
questionnaire. METHODS OF SAMPLING
In this study non probability sampling has been adopted. Under the nonprobability sampling convenience sampling has been taken for the
purpose of study. CONVENIENCE SAMPLING
The sampling units are chosen primarily on the basis of convenience to the
researcher is known as Convenience Sampling. SAMPLE SIZE [PILOT STUDY]
One can say that the sample must be an optimum size that it is should beneither excessively large nor too small. Technically, the sample size
should be largeenough to give a confidence interval of desired width and as such the size
of the samplemust be chosen by logical process before sample is taken from the
universe.In order to extract much feasible results through the study, a sample size
of 200 has been taken for the study.242.4 SAMPLING SCHEME :
Sampling design of the study consist of two stepsa) Selection of the study area.b) Selection of the sample size
a) SELECTION OF THE STUDY AREA : The study was full and full in house project, so the study
area wascomplete chennai Lanson Toyota showroom.
b) SELECTION OF THE SAMPLE SIZE: Since the population is large, to anlayze the customer
perceptiontowards the service quality a sample of 300 is selected. The customer was
selected onthe basis of convenience sampling technique.
2.5 QUESTIONNAIRE DESIGN The required information was collected through a well-
structuredquestionnaire.
The structured questionnaire of this study included the followinga) Closed ended questionb) Open ended question
a) Closed ended question; In this type both questions and its respective answers are
arranged in astructured pattern. This includes.
i) Rating Scaleii) Dichotomous Questions
b) Rating Scale : These type of question helps to rate the customer perception
The no of question in the study are from 1 to 15. Dichotomous Question:25
Dichotomous Question allows for only two possible answers “yes” and“no”.
These type of question is the study are 16 & 18.2.6 STATISTICAL TOOLS USED FOR ANALYSIS
i WEIGHTED AVERAGE METHOD In this method the issue price is calculated by dividing the value
of materials inhand by the no of units in hand. Average price to be charged to issue will
continue to bethe same until a new purchase is made which will necessitate
computation of a new average. ii CONFIDENCE LEVEL & SIGNIFICANCE LEVEL
The confidence level or reliability is the expected percentage of times that
the actual value will fall within the stated precision limits. Thus, we take a confidence
level of 95%, then we mean that there are 95 chances in 100 (or .95 in 1) that the sample
results represent the true condition of the population within a specified precision range
against 5 chances in 100 (or .05 in 1) that it does not.Iii ONE SAMPLE RUN TEST
TO DETERMINE THE RANDOMNESS OF THE SELECTED SAMPLES
H0 : Samples are randomly chosenH1 : Samples are not randomly chosen262.7 ANALYSIS & INTERPRETATION
TABLE 2.7.1CLASSIFICATION ON THE BASIS OF GENDER
S.NO GENDERNO OF
RESPONDENTSPERCENTAGE
(%)1. MALE 148 74
2. FEMALE 52 26TOTAL 200 100
SOURCE: PRIMARY DATAINFERENCE:
Most of the respondents are male in the classification27TABLE 2.7.2
CLASSIFICATION ON THE BASIS OF AGES.NO
AGE NO OF RESPONDENTSPERCENTAGE
(%)1. >20 100 50
2. 21 – 30 66 333. 31 – 40 34 17TOTAL 200 100
SOURCE: PRIMARY DATAINFERENCE:
Most of the respondents are in the age group of less than 20 & some of them in the age
group of 21 – 30.CHART 2.2.2 CLASSIFICATION ON THE BASIS OF AGE
5033170102030405060
>20 21 – 30 31 – 40 AGE
NO. OF RESPONDENTSTABLE 2.7.3CLASSIFICATION OF OCCUPATION
S.NOOCCUPATION NO. OF
RESPONDENTSPERCENTAGE (%)1 STUDENT 80 40
2 EMPLOYEE 40 203 BUSINESS 20 10
4 PROFESSIONAL 14 75 HOUSEWIFE 46 23
TOTAL 200 100SOURCE: PRIMARY DATA
INFERENCE:Most of the consumers are Students and Housewife
80402014
4601020304050607080
NO. OF RESPONDENTSSTUDENT PROFESSIONAL
OCCUPATIONCHART 2.2.3CLASSIFICATION OF
OCCUPATIONiiTABLE 2.7.4
AWARENESS ABOUT BRITANNIA MARIE GOLD BISCUITSS.NO AWARENESS NO OF RESPONDENTS
PERCENTAGE(%)
1. YES 200 1002. NO - -
TOTAL 200 100SOURCE: PRIMARY DATA
INFERENCE:All the respondents are aware of Britannia Marie Gold Biscuits
CHART 2.2.4 AWARENESS ABOUT
BRITANNIA MARIE GOLD BISCUITS
Y E S1 0 0 %
N O0 %
Y E S N OiiiTABLE 2.7.5
MODE OF AWARENESS ABOUT BRITANNIA MARIE GOLD BISCUITS
Inference:Since the no of runs (=50) is inside the curve, H0 is accepted. i.e. samples
arechosen randomly.
CHAPTER – 33.1 FINDINGS OF THE STUDY
v Among the outlet surveyed 74% is male and 26% female.v Most of the respondents belongs to male [74%].
v All the surveyed 200 outlets sell biscuitsv Most of the respondents are in the age group of less than & some of
them in theage group of 21 – 30 & 31 – 40. [
v Most of the respondents are students [40%] and whereas some of them are house
wives (23%) and employees (20%) & others (17%)v Out of the 200 outlets surveyed, all the respondents are aware of
Britannia MarieGold biscuits.
v Most of the respondents are aware of Britannia Marie Gold biscuits through
advertisement & some of them through friends.xxivv 80% of the respondents buy Britannia Marie Gold biscuits and while
few of themdon’t buy Britannia Marie Gold biscuits.
v The main reason behind the purchase of Britannia Marie Gold biscuits is mostly
for its taste & quality & price.v Britannia Marie Gold moves fast when compared to respondents buy
biscuits inone month.
v Most of the respondents are satisfied with the price of Britannia Marie Gold
biscuits and whereas few of them are dissatisfied.
v Among the 200 retail outlets surveyed 74% of the respondents had said it is
costly, 9.5% said it is cheap.v 54% of the respondents are interested buy in the same price. 46% of
them are notinterested to buy in the same price.
v Most of the consumers frequency of purchase of biscuits are weekly and next
comes daily & fortnightly.v 46% of respondents are satisfied the Britannia Marie Gold biscuits.v 49% of the respondents are satisfied with the price of the Britannia
Marie Goldbiscuits.
v Most of the respondents are highly satisfied with the 54% quality & 46% with
packaging & 39% with brand image & others 66% of Britannia Marie Gold
biscuits.v Most of the respondents prefer in buying 200 gm of Britannia Marie
Gold andnext preferable size is 100 gm and some of them like 400 gm.
v 70% of the respondents are feel that Britannia Marie Gold biscuits is easily
available in the market.xxv3.2 SUGGESTIONS
ÿ The company may provide the biscuits at reduced / concessional price for the
customer in Chennai provided at round off price say re.1 or re.2.ÿ The company may advertise by television, newspaper & hoardings etc.
ÿ The company may advertise to create awareness regarding the nutrients included
in the biscuits.ÿ The company may provide samples to the customers.
ÿ The company may provide some consumer offer to the customer.ÿ The company may introduce new products the would help the
customers for theirtaste.
ÿ Mostly respondents suggested for reduction of pricesÿ Give different shapes, which will be new & will be attractive for
childrenÿ Introduce new products, which can be meant for occasions
ÿ Improving the taste and also giving more flavors can attract attract more
customers3.3 CONCLUSION
The market study on biscuits at Chennai city as helped to know the status of biscuits.
It has revealed the requirements of the retailers, the profile, characteristics, and taste of
the consumer of biscuits. Britannia biscuits are having a good market share in Chennai
city. Carring out relevant sales promotional activities can increase biscuits demand in
Chennai city with regard to various brand of biscuits. This study has helped the
researcher to gain good experience and more information about the biscuit market.xxvi
3.4 APPENDIXQUESTIONNAIRE
1. Name :2. Sex: Male o Female o
3. Age: <20 o 21 – 30 o 31 – 40 o >41 o4. Occupation:
Student o Employee o Business o Professional oHousewife Others
5. Are you aware of Britannia Marie gold biscuits?Yes No
6. How did you come to know about Britannia Marie Gold?Through Shops o Advertisements o Friends o
Others o7. Do you buy Britannia Marie Gold biscuits?
Yes o No o8. What is the reason for buying Britannia Marie Gold biscuits?
Taste o Qualityo Less Price o Quantity o
Package o9. How many packs do you buy in one monh?
1 o 3 o 5 o 7 o 10 o10. What is your opinion about the price of the biscuits?
Reasonable o Costly o Cheaper o11. Are you interested to buy in the current price?
Yes o No o12. Please rate the opinion that attracts you in buying the biscuit?
Qualityo Price o Packaging o Flavour oAvailability o
13. Rank the factors that influence you in selecting Britannia Marie Gold biscuit?
Advertisement o Attractive Packing o Brand Image oFree Gifts o Price o Qualityo Quantity oxxvii
14. How often do you purchase Britannia Marie Gold biscuits?Daily o Weekly o Fortnightly o Monthly o
Occasionally o15. Indicate your level of satisfaction of the various factors of Britannia
Marie Goldbiscuits
FACTORS HighlySatisfiedSatisfied
Neither Satisfiednor Dissatisfied
DissatisfiedHighly
DissatisfiedPrice
QualityPackaging
Brand ImageOthers
16. Which pack size do you prefer in buying Britannia Marie gold Biscuits?
100 gm o 200 gm o 400 gm o
17. Do you find Britannia Marie Gold biscuits easily available in the market?
Yes o No o3.5 BIBLIOGRAPHY
TEXT BOOKSÿ Philip Kotler : Marketing Management (Millennium edition), Prentice
– Hall ofIndia (P) Ltd., New Delhi – 2001.
ÿ Aakar, Day and Kumar, Essentials of Marketing Research, John Wiley & Sons2001.
ÿ Richard I.Levin and David S.Rubin, Statistics for Management, 7t h
Edition,ÿ S.P.Gupta Statistical Methods
ÿ Prentice Hall of India Pvt.Ltd., New Delhi 1997o Joseph F.Hair, Jr, Marketing Research, McGraw Hill, 2000
o G.C.Beri, Marketing Research, McGraw Hill, 2000WEB SITE : WWW.britannia.comxxviii
Below the line initiatives are extremely important in the cosmetic segment since the buying experience is as important as brand image and advertising. Significant focus is on sales counters, beauty advisors and dealer aids. We constantly integrate a lot of the above the line campaigns like 'Whose watching your lips' with below the line initiatives Anil Chopra, Business Head, Lakme Lever
''Lakmé is at the forefront of product-innovation. Almost everyone has a Lakmé-something in their (cosmetics) collection,'' said Mumbai-based fashion choreographer Lubna Adams.
The Indian cosmetics industry is in churn. Even as the premium segment is getting crowded, the rural market is turning out to be the stronghold of smaller, regional players. Although stiff competition has emerged for Lakme Lever within the Rs 250-crore colour cosmetics market, it continues to lead. In the skincare market, estimated at Rs 700 crore, Lakme's market share averages 7-8 per cent. Catalyst spoke to Anil Chopra, Lakme Lever's Business Head.
.
INTRODUCTION
High priestess of sacred Indian temple meets English army officer who's unwittingly strayed into holy ground. They fall in love. Her orthodox father vows vengeance... That's the story of Lakmé, a 19th century opera written by Frenchman Leo Delibes, from which Simone Tata borrowed the name Lakmé (French for Lakshmi, the name of the priestess).
The current size of the Indian cosmetic market is approximately US$ 600 million. Of this, the fastest growing segment is color cosmetics, accounting for around US$ 60 million of the market. Industry sources estimate a rapid growth rate of 20 percent per annum across different segments of the cosmetics industry reflecting an increasing demand for all kinds of beauty and personal care product. Growth has come mainly from the low and medium-priced categories that account for 90 percent of the cosmetics market in terms of volume.
Even with a 20 percent average growth rate, the per capita consumption of cosmetics is very low in India. Current per capita expenditure on cosmetics is approximately US$ 0.68 cents as compared to US$ 36.65 in other Asian countries. However, with changing lifestyles, higher disposable incomes, increasing advertising, penetration of satellite television, awareness of the western world and growing importance of beauty pageants, there have been significant changes and use of cosmetics is on the rise.
Lakme, a brand originally introduced by the Tata group of India, now bought over by Hindustan Unilever (HUL) of the Unilever group, Tips & Toes, another domestic player, and Revlon dominate the US$ 60 million color cosmetics market. Multinationals, Revlon of the U.S. and L'Oreal's Maybelline has a dominant share of the small premium lipsticks and nail enamels market. Mass-market products account for a major share, while the premium segment accounts only for a mere 9 per cent in lipsticks and 5 per cent in nail enamels. Lipsticks account for nearly a third of the market at US$ 21 million, while the market for nail enamels is estimated at around US$ 23 million. The color cosmetics
segment is very competitive and has a high penetration level of 80 percent.
The skin care market in India is estimated at US$ 180 million. Within the last decade, this segment has seen many consumers slowly shift from the mass to the premium end of the market. The penetration rate is high in the skin-care segment as compared to color cosmetics. In the skin-care segment, price and volume played an equal role in value growth. Moisturizing lotions, fairness creams and face cleansers are the popular categories in the skin-care segment and account for approximately 60 percent of the skin-care segment. The major players in this segments are Lakme, Ponds, Fair & Lovely of the HUL group with a 50 percent market share, followed by players such as J.L. Morison that markets the Nivea range of products in India, Godrej and Revlon. Penetration levels of international cosmetics brands in India are still low. Foreign brands currently constitute only 20 percent of the market. A major reason for low penetration of international brands can be attributed to high pricing. These companies initially gained sales on their international brand image, however, repeat purchases were not forthcoming and to retain their sales growth, several foreign companies reformulated price strategies to tap the large Indian middle class. Urban women in the middle and upper income groups in the age range of 23-50 is the target group for international brands, as this group looks for better products and is willing to pay a premium for international quality products. Industry estimates suggest that there are close to 10 million such women in India.
Chapter 3
RESEARCH METHODOLOGY
The research is based on:-
Primary Data1) Questionnaire
Secondary Data Internet Company Reports& Broachers Magazines Newspapers Articles &journals
Data is also gathered by talking to the respondents (Target Audience, understanding their beauty needs,what aspire them to go for the (lakme)brand. Also the level of :-
Brand awareness, Price level, Visibility of brand personality. Expectancy of Communication
All these factors were the prime criterion for selecting (Which brand??), Short listing and ranking (level of trustworthiness? or most favoured ) which had helped us for identifying the winner in cosmetics industry.
Objective
1 Help in building a positive association with people thereby enhancing brand personality
2 How to break the negative connotation of ‘’Being fashionable’’
3 Why has Lakme missed out on promotional gauge despite roping in top brand ambassadors.
4 How can the brand retain its lost spot?
HYPOTHESIS
In the classical tests of significance, two kinds of hypothesis are used the null hypothesis and the alternate hypothesis. Null hypothesis ( Ho) is used for testing. It is the statement that no difference exists between the parameter and the statistic being compared. Second is Alternative hypothesis(HA) is alternative hypothesis is alternative hypothesis which holds that there has been a change.
Hypothetical testing can be viewed as a six steps procedure; Establish a null hypothesis Choose the statistical test on the basis of assumption about the
population distribution and measurement level select the desired level of significance Parametric and non parametric tests are applicable under various
conditions like parametric operates with the interval and ratio data and are preferred when their assumptions can be met. Non parametric tests do not require stringent assumptions about the population distribution and are less useful with less nominal and ordinal values.
In this report our null hypothesis and alternative hypothesis are stated below:
Ho: Respondents are satisfied with the quality of Lakme products. Ha: Respondents are not satisfied with the quality
Ho: Respondents are brand Loyal Ha: Respondents are not brand Loyal
Ho: Respondents prefer lakmeHa: Respondents do not prefer lakme
HO: Respondent are satisfied nor aware of new product rangeH: Respondent are not aware of new range.
HO: Respondent do believe that endorsement by celebrity play any role in the decision makingHA: Respondent do not believe that endorsement by celebrity play an important role in the decision making
RESEARCH DESIGN
Our research is based on the Exploratory Study.
Research is exploratory when you use no earlier model as a basis of your study. The most usual reason for using this approach is that you have no other choice. Normally you would like to take an earlier theory as a support, but there perhaps is none, or all available models come from wrong contexts.
Exploratory research means that hardly anything is known about the matter at the outset of the project. You then have to begin with a rather vague impression of what you should study, and it is also impossible to make a detailed work plan in advance.
The gradual process of accumulating intelligence about the object of study means also that it will be impossible to start by defining the concepts of study. You have to start with a preliminary notion of your object of study, and of its context. During the exploratory research project, these provisional concepts then gradually gain precision.
We have collected our data by drafting a questionnaire and thereby interpreted or analyzed or result by using the Microsoft excel.
Sample design
The sampling procedure used to produce any type of sample Sample size of 100 customers.
Half a century ago, as India took her steps into freedom, Lakme, India's first beauty brand was born. At a time when the beauty industry in India was at a nascent stage, Lakme tapped into what would grow to be amongst the leading, high consumer interest segments in the Indian Industry - that of skincare and cosmetic products. Armed with a potent combination of foresight, research and constant innovation, Lakme has grown to be the market leader in the cosmetics industry. Lakme today has grown to have a wide variety of products and services that cover all facets of beauty care, and arm the consumer with products to pamper herself from head to toe. These include products for the lips, nails, eyes, face and skin, and services like the Lakme Beauty Salons.
A little bit of Lakmé history:
In 1995, Lakmé Ltd (a Tata Group company) and HLL formed a 50:50 venture Lakmé Lever that would market and distribute Lakmé's products. In 1998, Lakmé sold its brands (and the 50 per cent it owned in the JV) to HLL, renamed itself Trent and entered a different business (retail). Only, the years between 1995 and 2000 saw HLL wrestling with several issues with a bearing on Lakmé's future. A brand that has over 5 decades talked of beauty is none other than Lakmé. Launched in 1952, it offered a range of cosmetics with nail polishes & lipsticks from the early 80’s. Lakmé also understands the importance of maintaining and accentuating a women’s natural beauty, for this it has introduced a range of skincare products from 1987. These ranges have been constantly innovated to bring specialized beauty care and complete the range for the definitive women.
A brand that has over 5 decades talked of beauty is none other than Lakmé. Launched in 1952, it offered a range of cosmetics with nail polishes & lipsticks from the early 80’s. Lakmé also understands the importance of maintaining and accentuating a women’s natural beauty, for this it has introduced a range of skincare products from 1987. These
ranges have been constantly innovated to bring specialized beauty care and complete the range for the definitive women.
Chopra accepts that distribution has been the company's Achilles heel for some time: ''The supply-chain hasn't been as robust as it should have been, but that has been the result of our efforts to reposition and reintroduce the brand.'' The positioning bit, although complex, is clear: Ponds is Lever's primary skincare brand; Lakmé, its aspirational colour cosmetics brand, which also has a presence in skincare.The 'aspirational' qualification would mean Lakmé would compete at what the company terms the 'upper-mass' (premium) end of the colour cosmetics spectrum (products priced between Rs 85 and Rs 250) where a slew of competitors, ranging from Revlon (through Modi Revlon) to Chambor, are already slugging it out. Says Meghna Modi, 26, Executive Director, Modi Revlon: ''The numbers say it all. According to ORG-MARG's retail audit, we have an 84 per cent share of the premium end of the colour cosmetics market.'' Chopra is quick to rubbish this claim; he says ORG-MARG does not have a representative sample of the 60,000 outlets through which colour cosmetics are sold in India.Still, it is conceivable that Lakmé's new-found aspirational strategy could have been brought about by competitors like Revlon and Maybelline, which targeted this segment. Indeed, the company's non-transfer lip-colour range follows in the wake of Maybelline's launch of a similar range, and its new nail-enamel colours come soon after Maybelline and Revlon launched their nail-enamel range. The company's defense is that it takes at least 15 months from the conceptualization to the actual launch of products.And fashion consultants like Meher Castelino believe the brand commands an edge at the high-end: ''By appropriating the fashion platform for itself, Lakmé has entrenched itself at the glamour-end.''
SWOT ANALYSIS Of LAKME
Strengths : local brand of specific relevance to India. Strong R&D capability, well linked with business. Integrated supply chain and well spread manufacturing units. Ability to deliver Cost Savings. Access to Unilever global technology capability and sharing of
best practices from other Unilever
Weaknesses : Price positioning in some categories allows for low price
competition. Varying quality range in its products. Falling Quality of Lame salons
Opportunities : Brand growth through increased consumption depth and frequency
of usage across all categories. Upgrading consumers through innovation to new levels of quality
and performance. Building brand image by collaborating with top designers in
Lakme Fashion week
Threats : Aggressive price competition from local and multinational players. Spurious/counterfeit products in rural areas and small towns. Non Existence of brand image in long Run
Everything a girl wants
Lakmé has a wide range of products in color cosmetics that bring visible results. To add to this vast repertoire is a range of specialized skin care products for the discerning women. Keeping skin looking healthy and glowing is also a part of looking great. Lakmé provide the complete package with the skin care range and the wide range of colors to spice up the look.
Lakme products
Colours
From the spicy shades to the flattering look, Lakme offers a range of products in the face, lips, eyes and nail segment for the beauty aficionados.
True Wear Nail Enamel -Nail Enamel with Lacquer-like finish. Contains resins and silicone with colour lock technology that gives brilliant long lasting shine
Skin
For radiant skin Lakmé is there to pamper your skin with specialized products for the diva in you.
Cleansing
Strawberry Silk Splash Face Wash , Lakmé Fundamental Deep Pore Cleansing Milk -
Moisturizing
1. Lakmé Fundamental Peach Milk Moisturiser skin.
2. Lakmé Fundamental Winter Care Lotion -
Sun Protection
The range comprises of lotions to keep your skin healthy and younger looking.
CHAPTER 5 INDUSTRY PROFILE
Hindustan Unilever Limited
Chairman: Harish Manwani CEO and Managing Director: Douglas (Doug) Baillie Director, Finance and IT: D. Sundaram
Hindustan Unilever Limited (abbreviated to HUL), formerly Hindustan Lever Limited , is India’s largest consumer products company and was formed in 1933 as Lever Brothers India Limited. It is currently headquartered in Mumbai India and its 41,000 employees are headed by Harish Manwani, the non-executive chairman of the board. It is Fast-Moving Consumer Goods (FMCG) Industry that includes detergents, soap, shampoo deodorant, toothpaste, and other personal care items, and cosmetics HUL's personal care brands include soap brands such as Lux, Lifebuoy, Liril, Breeze, Dove, Pear's, and Rexona; shampoos and hair coloring brands including Sunsilk Naturals and Clinic; skin care brands Fair & Lovely and Pond's; and oral care brands Pepsodent and Close-Up. The company's cosmetic line is led by the Lakme brand. HUL also produces a line of Ayurvedic personal and healthcare items under the Ayush brand. In addition to the FMCG segment, HUL has developed a line of food items, primarily under the Kissan and Knorr Annapurna brands, as well as the ice cream brand Kwality Wall's.
To earn the love and respect of India, by making a real difference to every Indian.. HLL follows its parent company’s mission to “add vitality to life”. They strive to meet everyday needs of nutrition, hygiene, and personal care products that help people “feel good, look good, and get more out of life”.
STRATEGY
Grow ahead of the market by leading market developmentActivities
Leverage positive impact of growing Indian economy onconsumer spending
Grow a profitable foods and Top end business
Grow the bottom-line ahead of top line
Strong commitment to sustainable development
DISTRIBUTION
With respect to distribution related activities like sales and marketing, HLL is second to none in pushing the
boundaries of what is possible financially, structurally, and logistically. Beyond its pioneering work FMCG distribution, the company has sought to instill in its customers an elevate sense of brand experience while simultaneously providing greater and more varied access to its products as well as improved clarity to its communications. New initiatives include raising brand visibility through in-store promotions, store-based product facilitators, and self-service. HLL has enabled an even further level of personalization and brand experience in the direct sales arena with its ground-breaking Hindustan UniLever Network, having amassed an army of consultants 250,000 strong with access to 80 % of city dwelling Indians.
Hindustan Unilever – Present Scenario
15,000 employees 1,200 managers 2,000 suppliers & associates 75 Manufacturing Locations Total Coverage 6.3 Mln Outlets Direct Coverage 1 Mln outlets
Market Overview
The current size of the Indian cosmetic market is approximately US$ 600 million. Of this, the fastest growing segment is color cosmetics, accounting for around US$ 60 million of the market. Industry sources estimate a rapid growth rate of 20 percent per annum across different segments of the cosmetics industry reflecting an increasing demand for all kinds of beauty and personal care product. Growth has come mainly from the low and medium-priced categories that account for 90 percent of the cosmetics market in terms of volume.
The Shahnaz and the Biotique brands dominate the premium herbal cosmetics segment in India, estimated at USD 100 million.
. Since liberalization, many international brands like Avon, Burberrys, Calvin Klein, Cartier, Christian Dior, Estee Lauder, Elizabeth Arden,
Lancome, Chambor, Coty, L'Oreal, Oriflame, Revlon, L'Oreal, Yardley, Wella, Schwarzkopf, Escada, Nina Ricci, Rochas, Yves St. Laurent and Japanese cosmetics company, Shiseido have entered the Indian market. The prices of most foreign brands have been fairly high, which has deterred average Indian consumers. International brands cater to a segment that can broadly be classified as the urban higher income group.
Market Trends
Cosmetics and toiletries are not just the domain of women any longer and Indian men too are increasingly taking to the use of more and more body sprays, perfumes and other cosmetics and toiletries. With rising demand from men, the Indian market is getting enlarged and many players are coming out with cosmetic products especially skin care products for men. The market size of men's personal care segment is estimated at approximately US$ 165million, with Gillette having the largest market share. Other major players in this segment include Godrej, J.L. Morison and HLL. The growing demand for men's cosmetics have made many direct selling companies such as Modicare and Amway to launch new products for men.
In the last five/six years, there has been a renewed craze for herbal cosmetic and personal care products, especially in the skin care segment with the growing belief that chemical-based cosmetics are harmful. Shehnaz Hussain, Biotique, and Lotus Herbals are the major players in this segment. Many companies also expanded their range to include herbal variants..
The urban population in the major cities with increasing purchasing power is the main force that drives demand for various cosmetic products in India. The advent of satellite television and awareness of the western beauty and fashion world, advertisements and promotions,
increasing number of women joining the work force is changing preferences, customs and cultures in India
Import Market
Costs for importing products are much higher than producing it in the country. India allows entry of imported cosmetics without any restrictions but the average import tariff on cosmetics products is currently very high at 39.2 percent. This makes imported products very expensive for most consumers. Most foreign cosmetics companies selling premium brands have had a difficult time developing the low volume premium market in India. Many had to re-work price strategies towards the mass segment. Price is not the only reason responsible for their problems. Poor assessment of the size of the upper middle and high-income groups, and price sensitivity even within these groups, had added to their problems.
According to estimates of industry experts and trade publications, India's annual imports of cosmetics and toiletries and intermediate raw materials is approximately US$ 120 million. Countries like US, Europe, mainly France, Germany, Italy, Netherlands, and Spain account for the major share; and Australia, China, and Japan account for rest of the share.
Competition
The Indian cosmetic market, which has been traditionally a stronghold of a few major Indian players like Lakme, and Ponds has seen a lot of foreign entrants to the market within the last decade. India is a very price sensitive market and the cosmetics and personal care product companies, especially the new entrants have had to work out new innovative
strategies to suit Indian preferences and budgets to establish a hold on the market and establish a niche market for themselves.
Given the price-sensitivity of the Indian consumer who do not normally prefer to fork out a large sum at one time, many cosmetic and toiletries companies launched their products in smaller pack sizes to make them more affordable. HLL and Revlon were the first to introduce small pack sizes. Revlon introduced its small-range of 8 ml nail polishes and lipsticks, and was soon followed it its strategy by major Indian companies as well.
Stiff competition in the cosmetics and toiletries market also saw an increase in the range of new products being introduced for newer application concepts in the last few years. In the skin-care segment, from just creams and moisturizers, there has been a upgrade to value-added products such as under-eye wrinkle removing creams, dark circle removing creams toners, sunscreen lotions, fairness creams, and many more. . Beauty counselors or advisors at retails outlets have been very successful in gaining attention, creating product awareness and overcoming consumers lack of familiarity with, and fears about many cosmetics and personal care products such as home hair permanents and color cosmetics. Some companies such as Lakme have even set up exclusive Lakme beauty parlors at major cities in India through the franchisee route .
L'Oreal markets its range of specialized hair care products exclusively through salons and beauty parlors. L'Oreal currently is the only company in the market that has a hair color range tailored exclusively for parlors..
A strong brand promotional campaign, good distribution network, constant product innovation and quality improvement, and the
ability to provide a variety of quality products are some of the major reasons for the success of most companies.
HLL, is currently India's largest cosmetics and personal care products producer and its brands has the dominant share (more than 50 percent) in segments such as personal wash, skin care, shampoos, lipsticks and nail polish. Sales Prospects
The growing Indian cosmetics market offers promising opportunities for international brands. The growth rate in the cosmetics market reflects an increasing demand for beauty care products in India. The most promising segments for international companies to pursue are perfumes and fragrances, and specialized/professional skin care and hair care products. The fastest growing market is however color cosmetics, which account for US$ 60 million of the total market.
The rural market in India for cosmetics and toiletries remains is largely untapped. Major domestic players have also not been able to penetrate this market. The urban market itself for specialized cosmetic products remains to be fully exploited. The Indian skin-care market is not yet fully tapped and offers promising prospects as a growth area. Penetration of color cosmetics is lower than the penetration prospects of the skin-care segment.
To promote the growth of their products, a dominant player like Lakme have embarked upon a business plan to establish their exclusive franchised beauty salons across major metros in the country.
Imported cosmetics have had a major impact on the Indian market. Foreign products have enhanced growth of the Indian market by attracting aspirational consumers and increasing acceptance of color cosmetics, previously perceived by many as harmful to skin. Indians generally perceive foreign brands as being of superior quality.
Other key issues regarding sales prospects are product variety and retailing strategies as well. There is a marked shift among consumers from functional common-fits-all products to more specialized formulations. This is one of the reasons why an increasing number of cosmetic companies are dealing with consumers directly through special exclusive counters in major departmental stores and malls featuring their own beauty consultants. L'Oreal India has established a consumer advisory unit and Ponds, as mentioned earlier offers skin care advise through touch-screen kiosks, and telephone help-lines.
Market Access
Prior to March 31, 1999, India had cosmetics and toiletries on its restricted list of imports and a special import license was required for import of cosmetics and toiletries into the country. This regulation has now been done away with and, India today, permits import of cosmetics and toiletries without any restrictions. This has made the Indian market more attractive to foreign cosmetic companies. Imports have been made easier, but not necessarily cheaper.
The total import duty rate on cosmetics and toiletries classified under HS Code 33.03 to 33.07 is 39.20 percent, which even though has been scaled down over the past few years is still very much on the higher side. The high duties cause imports to be price uncompetitive. Certain high - end products just do not sell in India because the final price to bring it into India is too high for consumers to pay.
Chapter 6
Questionnaire
Q) Do lakme provides Quality Products?
Q) Are You Brand Loyal to Lakme?
Q) For what purpose You use lakme products ?
Q)What do you think about the price level of Lakme products ?
Q)If not Lakme then which Other brand ?
Q) Do celebrity endorsements in advertisements attract you
towards Lakme products ?
Q)What inspire you to go for any cosmetic product?
Q)What changes you would like to see in the Lakme
products?
CHAPTER 7- FINDING & ANALYSIS
Hypothesis Testing using Chi Square
Overall Satisfaction
χ2=86.1Table value=9.49Since the table value is less than the χ2.So the Ho is rejected.
χ2=54.503Table value=5.99Since the table value is less than the χ2.So the Ho is rejected.
CHAPTER 8
RECOMMENDATIONS
Promotions beyond fashion week The brand should not lose its focus away from cosmetics. It can
proved to very detrimental. For vast reach unlikely, in the short-term. “Some sort of an alliance
or co-branding with the salons that already exist may, perhaps, have been a better strategy.
The general perception is that company-owned salons are expensive. Though Lakme beauty salons are reasonably priced, it has not been communicated well enough.
CHAPTER 9 -CONCLUSION
Since the Null hypothesis is rejected therefore it states that the customers are not satisfied well with the lakme products . This would be the major cause of lose of market share in the country. Another reason is the upcoming of Regional brands in the country that is making lakme loose its sheen. Therefore the company should take in strategic steps and planning to revive its brand image accordingly.
The local cosmetics and toiletries market is valued at approximately RM3 billion or about US$800 million, with a growth rate of 13% annually. It is estimated that there are more than 60,000 types of cosmetic products in the local market. Imported products from Thailand, the United States, France, Singapore and Japan dominate the market.
The local cosmetics and toiletries industry generally involves mixing and formulation processes, using imported ingredients. Many of these companies are contract manufacturers, mainly for products such as shampoo and conditioners, other hair care products, perfumes, and cosmetics.
Advertising and promotion is crucial for cosmetics and toiletries products, in order to create an awareness of new products and build brand loyalty among consumers. Advertisements in TV and the print media such as newspaper and magazines, especially women’s magazines, are very common. Samples of toiletries products are distributed to individual households and products in sachet form are attached to magazines. Free gifts are given during promotion periods and are advertised in the local major newspapers and on the web.
According to the industry, the market is saturated with many different types of products, and in the long run, established brands that emphasize quality and service will have the edge.
.
BIBLIOGRAPHY
Kotler Philip , Keller Lane Kevin marketing , prentice hall of India , 2005
S.P Gupta , Business Statistics, 14th edition , 2005 Business Statistics , J. K Sharma , edition 2005 Tata Mc graw-Hill Edtion , Business research methods ,
o Colour/Shadeso Priceo Packagingo Versatilityo Others
2. Are You Brand Loyal to Lakme or you Switch To others too.?
o Yes
o No3. Do you Think Lakme provides quality Products to its customers?
o Yes
o No
o Can,t Say
4. For Which Purpose you usually use Lakme Products ?
o Eyes
o Lip Colour
o Face
o Nail Enamel
5. According to you what kind of promotional activities can make
Lakme reach customers in a better way which can increase there market share ?
o Lucky Draws
o Free Bonanza
o Free sample Distibutions
o Discount Coupons
o Others
6. What do you think about the price level Of Lakme products?
o High
o Optimum
o Low
7. From Where do you purchase your product ?
o Departmental store
o Cosmetic stores
o Drug/Pharmacy
o Supermarket
o Beauty Salon
o Others
8 If not Lakme , then which other brand?
o Revlon
o Oriflame
o Blue Heaven
o L’Oreal
o Lissome
o Others
9. Are you aware of the new range of Lakme Products?
o Yes
o No
10. How would you rate the Lakme products ?
o Good
o Very Good
o Poor
o Average
o Can’t Say
11. Do the Celebrity Endorsements in the Advertisements attract you towards the product ?
o Yes
o No
12. What changes you would like to see in the Lakme products?
o More product range
o More shades
o Better packaging
o All of the above
13. Will you Recommend Lakme products to Others ?
o Yes
o No
Case Study
Lakme (A Brand of Hindustan Unilever Ltd.)
Half a century ago, as India took her steps into freedom, Lakme, India's first beauty brand was born. At a time when the beauty industry in India was at a nascent stage, Lakme tapped into what would grow to be amongst the leading, high consumer interest segments in the Indian Industry - that of skincare and cosmetic products. Armed with a potent combination of foresight, research and constant innovation, Lakme has grown to be the market leader in the cosmetics industry. Lakme today has grown to have a wide variety of products and services that cover all facets of beauty care, and arm the consumer with products to pamper herself from head to toe. These include products for the lips, nails, eyes, face and skin, and services like the Lakme Beauty Salons.
A little bit of Lakmé history:
In 1995, Lakmé Ltd (a Tata Group company) and HLL formed a 50:50 venture Lakmé Lever that would market and distribute Lakmé's products. In 1998, Lakmé sold its brands (and the 50 per cent it owned in the JV) to HLL, renamed itself Trent and entered a different business (retail). Only, the years between 1995 and 2000 saw HLL wrestling with several issues with a bearing on Lakmé's future. A brand that has over 5 decades talked of beauty is none other than Lakmé. Launched in 1952, it offered a range of cosmetics with nail polishes & lipsticks from the early 80’s. Lakmé also understands the importance of maintaining and accentuating a women’s natural beauty, for this it has introduced a range of skincare products from 1987. These ranges have been constantly innovated to bring specialized beauty care and complete the range for the definitive women.
A brand that has over 5 decades talked of beauty is none other than Lakmé. Launched in 1952, it offered a range of cosmetics with nail polishes & lipsticks from the early 80’s. Lakmé also understands the importance of maintaining and accentuating a women’s natural beauty, for this it has introduced a range of skincare products from 1987. These ranges have been constantly innovated to bring specialized beauty care and complete the range for the definitive women.
With a unique blend of understanding of women of all ages, today, Lakmé is all about setting trends and dominating the fashion arena.
Hindustan Lever’s Lakme Lever
Lakme is the brand of Hindustan Unilever Limited (abbreviated to HUL), formerly Hindustan Lever Limited , is India’s largest consumer products company and was formed in 1933 as Lever Brothers India Limited. It is currently headquartered in Mumbai India and its 41,000 employees are headed by Harish Manwani, the non-executive chairman of the board. It is Fast-Moving Consumer Goods (FMCG) Industry that includes detergents, soap, shampoo deodorant, toothpaste, and other personal care items, and cosmetics HUL's personal care brands include soap brands such as Lux, Lifebuoy, Liril, Breeze, Dove, Pear's, and Rexona; shampoos and hair coloring brands including Sunsilk Naturals and Clinic; skin care brands Fair & Lovely and Pond's; and oral care brands Pepsodent and Close-Up. The company's cosmetic line is led by the Lakme brand. HUL also produces a line of Ayurvedic personal and healthcare items under the Ayush brand. In addition to the FMCG segment, HUL has developed a line of food items, primarily under the Kissan and Knorr Annapurna brands, as well as the ice cream brand Kwality Wall's.
Lakme Going Global ?
If the company manages to scale up the brand and increase its consumption within India, there are strong indications that Lakme could leverage Unilever’s global reach on the back of the Anglo-Dutch major’s priorities on personal care and D&E (developing and emerging markets).
Given Lakme’s service sector lineage, the business model could benefit from what is perceived to be Unilever’s proposed area of interest for the future - services.
The company has Unilever Foodsolutions which works with customers including caterers, restaurateurs and major hotel and fast-food chains to create food solutions that help grow their business.
Reviving Of Lakme’s Brand
Lakme Lever had revived its youth-oriented brand, Elle 18. Having put the brand on `maintenance' mode, this division of HLL was focusing on Lakme.
Launched in 1998, Elle 18 targeted the first-time cosmetic user and currently sports two product lines comprising lipsticks and nail enamel.
"In the first three years, Elle 18 registered sharp growth rates and the purpose was to create a new segment of consumers," said Mr Chopra.
At that point of time, Elle 18's main competitor in the youth-based cosmetics market was Tips & Toes, a brand that is almost non-existent today.
Pricing
With a pricing that is almost one-third that of Lakme, Elle 18, of late, has also unleashed a campaign based on its products.
"There was a change in our strategy in the past. While Lakme has been high on innovation, Elle 18 has been on maintenance mode. The brand has been growing at a lower rate than Lakme. But now we are now relooking at Elle 18 as there is still no brand that is so sharply positioned on the youth platform," said Mr Chopra.
There was a conscious price differential between the brands to attract the first generation users of cosmetics. So, while a Lakme Lipstick would have an MRP of Rs 165, an Elle 18 Lipstick was pegged at Rs 55.
Meanwhile, Lakme Lever continues to innovate for its existing range of skincare and colour cosmetics under the Lakme brand. It recently relaunched its skincare range under the name of Lakme Fundamentals.
"While there is no new product, we will be upgrading the existing skin care range with new formulation and packaging," Mr Chopra said.
In colour cosmetics it has roped in designer Sabyasachi Mukerjee to unleash the `Free Spirit' range as part of its winter collection.
"The overall beauty market has been growing between 15-20 per cent but we have been growing higher than the market."
However, it is the salon business that has been registering the highest growth rates for Lakme Lever. "With a small base, our salon business has been growing the fastest," Mr Chopra said.
There are plans to have 100 Lakme salons by the end of the year from the existing 92 salons across the country.
Besides, Lakme Lever intends consolidating its hair care portfolio launched last year under the Lakme Hair Next brand.
Problems
Increasing Competition Low Rating of lame Salons (not so good customer services)
No new Strategies to look for improvements.
May loose its Sheen in a long run.
Recommendations
Promotions beyond fashion week The brand should not lose its focus away from cosmetics. It can proved to
very detrimental. For vast reach unlikely, in the short-term. “Some sort of an alliance or co-
branding with the salons that already exist may, perhaps, have been a better strategy.
The general perception is that company-owned salons are expensive. Though Lakme beauty salons are reasonably priced, it has not been communicated well enough.
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