Summer Project Roll No39

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ANALYSIS OF DIRECT MARKETING AND CONSUMER

BUYING BEHAVIOUR

Submitted in partial fulfillment of the Requirements for

(M.M.S)

(2009-2010)

SUBMITTED BY

SUDHIRKUMAR SURENDRANATH

PANDEY

Roll No: (39)

(Marketing)

Batch: (2009 - 2011)

UNDER THE GUIDANCE OF

Mr. SATYARAJ SUDHAKARAN (TSO)(HINDUSTAN UNILEVER)

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H & G H Mansukhani Institute of Management

H & G H Mansukhani Institute of Management

Ulhasnagar

MAY 2010- JUNE 2010

Students Declaration

I hereby declare that this report submitted in partial fulfillment of

the requirement of the award for the Master of Management

Studies to H & G H Mansukhani Institute of Management is my

original work and not submitted for award of any degree or

diploma fellowship or for similar titles or prizes.

Place : Ulhasnagar

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Date : September, 2010

Name : SUDHIRKUMAR SURENDRANATH PANDEY

Class : S.Y.MMS (Marketing)

Roll No. : 39

Certificate

This is to certify that the dissertation submitted in partial

fulfillment for the award of (M.M.S) of H & G H Mansukhani

Institute of Management is a result of the bonafide research work

carried out by Mr. SUDHIRKUMAR SURENDRANATH PANDDEY

under my supervision and guidance, no part of this report has

been submitted for award of any other degree, diploma,

fellowship or other similar titles or prizes. The work has also notbeen published in any journals/Magazines.

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Date Industry guide :Mr. SATYARAJSUDHAKARAN (TSO)

Company :Hindustan Unilever

Place: Designation : _______________

I/c Director

(Mrs. Swati

Sabale)

ACKNOWLEDGEMENT

Preparing a project of this nature is an arduous task and I was fortunateenough to get support from large number of persons to whom I shall always

remain grateful.

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I take this opportunity to express my deep sense of gratitude and

appreciation to my project guide Mr. SATYARAJ SUDHAKARAN (TSO) for

assistance, motivation, and being a continual source of encouragement for

me.

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

guidance, Cooperation and encouragement with immense pleasure I would

like to express my sincere thanks & gratitude to my college and colleagues

for having given their invaluable inputs directly or indirectly towards this

project.

I would also like to thank all the respondents for giving their precious time

and relevant information and experience I required , without which this

project would perhaps not have been possible,

Table of Contents

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Sr.No. CONTENTS Page Number

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CHAPTER 1 1. Executive Summary

2.1 Introduction

2.1.1 Introduction to the Subject

2.1.2 Introduction to the Industry

2.1.3 Introduction to the Company

2.1.4 Introduction to the Project

2.2 Objectives

2.3 Methodology

2.4 Sampling Design and Sample Size

2.5 Limitations of the Report

CHAPTER 3 3.1 Analysis & Findings

CHAPTER 4 4.1 Conclusions

4.2 Recommendations

ANNEXURES A-1 All tables

A-2

A-3

Executive Summary

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Hindustan Unilever Limited is the Indian arm of the Anglo-Dutch Company Unilever. Both

Unilever and HUL have established themselves well in the Fast Moving Consumer Goods

(FMCG) category. In India, the company offers many households brands like, Dove, Lifebuoy,Lipton, Lux, Pepsodent, Ponds, Rexona, Sunsilk, Surf, Vaseline etc. Some of its efforts were

also rewarded when four of HUL brands found place in the Top 10 brands list for the year

2008 published in The Economic Times.

In this competitive world, every person has to be perfect, in the same manner, company which is

an artificially person also has to be perfect in all sense like increasing its profitability, good

quality and satisfactory goods and services in order to maintain their good will which relies upon

the quality of goods and services provided to consumer.

After analyzing the market we have found out that there is huge market opportunity in water

purifier. Due to low price and different variety there is more chance that pureit can become the

market leader successfully. The water purifier market is growing by 25-28% annual. If we talk

about local competition, it is very less. The local players get the help by the government also

where the government has distributed free water purifier to households and started a project to

provide water supply to those households. There is huge competition from outside because many

multinational firms entered in this field to capture the market share in which Eureka Forbes is on

the top.

In marketing mix if we talk about segmentation, we can segment our market base on income,

geographic and physiographic bases. We can position ourselves in the market as new technology

low price and good quality. We can target the government where the government buy ourproduct and distributed to households and we can also target by income level.

HUL is also known for its strong distribution network in India. In order to further strengthen its

distribution, HUL launched a Project SAFE WATER ZONE in 2003 in Chennai. The idea

behind this project was to protect lives to water borne disease such as typhoid, jaundice and

diarrhea. In 2007 water division started national. Now it presents in all states and already

protected 15 million lives.

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Introduction1. Introduction of subject:

Marketing:

Marketing is the process by which companies create customer

interest in products or services. It generates the strategy that underlies sales techniques, business

communication, and business development. It is an integrated process through which companies

build strong customer and create value for their customers and for themselves.

Personal Selling:

Personal selling is the process of selling goods and

services directly to customers. Personal selling is far more significant than other forms of

promotion as it allows the salesperson to describe the product in detail to the customer in person.

Personal selling is therefore a highly interactive tool of promotion and is best suited for products

or services that are complex in nature.

The effectiveness of communication between the salesperson and the customer during the sales

process decides the success of the sales call. As a part of the selling process, salespersons

perform two entirely different tasks - sales development and sales maintenance. These tasks

require different skill sets and different approaches, making it tough for salespeople. As most

companies require the same salesperson to carry out both tasks simultaneously, salespersons

often tend to ignore the more difficult of the two tasks, that is, sales development. Sales

management has to differentiate between these two selling jobs for the company to be

successful. The objectives of the sales force are of two kinds, qualitative and quantitative.

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Qualitative objectives relate to the methods of sales force operations while quantitative

objectives are the measurable actions of the sales force. The sales force strategies of a company

fall into two categories - strategies for gaining market access and account relationship strategies.

Market access can be gained by using distributors, telemarketing, independent sales agents, the

Internet, developing hybrid marketing systems and by establishing strategic alliances.

The theories of personal selling include the AIDAS theory, the buying formula theory of selling,

the behavioral equation theory and the right set of circumstances theory. AIDAS is an acronym

for Attention, Interest, Desire, Action and Satisfaction. This theory states that a prospectivecustomer's mind passes through these five stages before he makes the actual purchase. The

buying formula theory states that the purchase process is characterized by a psychological

sequence of events that take place in the prospect's mind.

The selling process consists of a series of seven steps - prospecting, pre-approach, approach,

sales presentation, handling objections/sales resistance, close and post sales follow-up.

Companies should devote significant attention to customer satisfaction, so that customers remain

loyal to the company for a long time. Some critical customer related issues in personal selling

include understanding types of customers through different styles of selling, finding customers,

researching customers, communicating effectively, providing customer service and finally,creating customer satisfaction.

Consumer Behavior:

Consumer Behavior is defined as the decision making process and physical activity involved in

acquiring, evaluating using and disposing of goods & services.

All of us are consumers. We consume many things such as of daily use, luxuries and etc. we buy

& consume these products according to our needs, preference & buying power, The buying

patterns of consumer depends on many factors such as perception, social & cultural background,

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age group, attitude, personality, motivation, beliefs, eagerness to buy the products etc and many

other factor which are both internal as well as external.

Here the marketing person role begins that is he tries to understand the needs of different

consumers & societies. Different societies include societies where there is a lot of affluence and

these societies can afford to buy in greater quantities & at shorter intervals. The other one is the

poor society were the consumers can barely meets the barest needs. The marketers having

understood the different needs & behavior of consumer which require an in-depth study of

external as well as internal factor, they formulate their plans for marketing.

Consumer Behavior in management is very young concept. During 1950s marketing concept

was developed & various scholars & academicians concentrated on consumer behavior.

Marketing starts with consumer needs & ends with consumers it became a necessity to make astudy on buying patterns of consumer behavior.

Behavior of consumers exist from ancient days it was not a need to understand the behavior of

consumer but now-a-days as there are a number of substitutes available for a particular

customer, their needs, their behavior towards a particular product.

Consumer behavior is not just buying of goods & services but in fact the process starts much

before the goods have been bought. It starts with the need for the goods in minds of the

consumer & this lead to the searching of alternatives between the products, which can beacquired with their relative advantage & disadvantage. It leads to internal & external research.

then follows the process of decision making for purchase and using the goods then there post

purchase behavior which is very important as only because of it a marketer can understand

whether his product has been a success or not.

The key to a companys survival, profitability and growth in a highly competitive marketing

environment is its ability to identify and satisfy unfulfilled consumers needs better and sooner

than the competition. A successful marketer is market oriented which focuses on the needs of

buyer & production oriented marketer is one who focuses on needs of seller.

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Introduction to the Industry Water purifier sector:

Total market for water purifiers in India is valued at INR 9 bn in 2009 and is expected to grow

significantly in near future. Market comprises of three segments Ultra Violet (UV) based

Purifiers, Reverse Osmosis (RO) purifiers and storage / resin based purifiers.

The report provides a snapshot of the market. An overview gives a quick picture of the market

with estimated market size, growth rate, segment share, and revenue split between organised and

unorganised sectors. An analysis of drivers reveals that the scarcity of clean drinking water, low

penetration of water purifiers, increasing urbanization and rising water borne diseases is drivinggrowth in this sector. The key challenges identified include lack of standards and low awareness

levels.

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Future trends identified include tie-ups for enhancing distribution, increasing product Portfolio

and rural expansion. The competitive landscape identifies major players in this sector. The

report also provides details of the key developments in this space.

Approximately 80% of diseases in India are caused by water borne micro organisms. This is true

in rural as well as urban India. However, awareness of health risks linked to unsafe water is still

very low among the rural population. The few who treat water resort to boiling or use domestic

candle filters. In comparison, the urban Indian is definitely more health conscious and

understands the necessity of purifying water before it is fit for consumption.

Even so, it is estimated that roughly 7% of urban Indians use non manual water purifiers. More

Indians need to become aware of the importance of installing drinking water purifiers. There

remains a huge untapped market.

Though quite a few city dwellers still boil water, many are switching over to modern domestic

water purifiers. Electrical or chemical based home water purification systems are most suitable

for urban households because they require little or no manual operation and depending on the

technology can eliminate biological contaminants, chemical toxins and excessive salts. The main

contaminants are, however, micro organisms. UV purifiers and advanced chemical based

systems deal effectively with viruses, giardia and bacteria. This is one of the reasons why UV

and resin based purifiers are the most widely used water purifiers in India today.

It is estimated that around 80% of urban dwellers do not purify tap water. Many of them are

from the lower income strata and cannot afford UV or reverse osmosis water purificationsystems.

They are the potential buyers of economical but effective chemical purifiers. This is the market

that Eureka Forbes and Hindustan Unilever are tapping aggressively. Chemical based purifiers,

Aqua sure and Pureit, together account for 20% of water purifiers sold. Both are becoming

increasingly popular because they are effective and affordable. The two brands are reported to

be growing at 100 percent per annum. Also, they do not run on electricity and are ideal forlocations where power supply is unpredictable. Neither do they demand continuous water

supply. Power and water are still scarce even in urban India.

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It is estimated that roughly two thirds of the existing water purification market belongs to UV

water purifiers and one third is shared between reverse osmosis purification systems and

chemical purifiers. In the UV purifier segment, Eureka Forbes Aquaguard is the clear marketleader with approximately 68% market share. Other brands include Philips Intelligent Water

Purifier and Kents UV purifier. The UV purifier market is estimated to be growing at a lower

rate than the chemical based segment.

Reverse osmosis purifiers, which are rather expensive and not the preferred option in many

areas, have a smaller share of the market when compared with UV purifiers and chemical based

Systems. In the reverse osmosis segment, Eureka Forbes is again the major player with 60%

share. A major portion of the remaining 40% belongs to Kent reverse osmosis Systems.

That the Indian market has tremendous potential is evident from the fact that global majors such

as Philips and Hindustan Lever have stepped in and are looking to increase their share of the

market. The three principal players today are Eureka Forbes, Hindustan Lever and Philips. In the

years to come, we are likely to see others entering the fray.

India with a population of 120 crores is potentially one of the largest consumer markets in the

world. With urbanization and development of economy tested and interests of people changes

according as the advanced nation.

Marketing of any product depends upon the consumers wants, preferences, and taste. In market

well consider things very carefully because FMCG is the essential consumer need purchased by

individual to fulfill the need and for refreshment also.

Therere many ways to consumer awareness & sell water purifier products in the market like

dealers distribution, kiosk (canopy), d2d, cold call(referral, database..) etc.

Applying various tools and techniques every water purifier company like HUL, EURKA

FORBES, TATA, KENT etc. try to capture the market. To increase the sales of water purifier products initially, the position of the company in the market is to offer various range of

products. Potentiality of given products of the company strike rate of the company products and

finally the current market share of the company products in the same product profile segment of

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the market must be known to us. So that we can design and implement the right marketing

strategy for increase sales and consumer awareness as well as know the water drinking Habits in

Kalyan.

Market:The market is dominated by the organized sector

Water purifiers generally use chemical purification, ultraviolet treatment and filtration,

or reverse osmosis techniques

The market has tremendous growth potential as only b% of urban Indians use non

manual purifiers

Drivers&

Challenges

Drivers:

Scarcity of clean drinking water

Low penetration of water purifiers

Increasing urbanization

Water borne diseases

Challenges:

Lack of standards

Low awareness levels

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Trends:

Tie-ups for enhancing distribution

Increasing product portfolio

Rural expansion

Competition:

Company 1 is the dominant player in the market

In the low end segment Company 2s ABC leads on account of first

mover advantage

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

Water purifier companies have also been focusing on advertising and after

sales service as a part of their marketing strategies

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HUL is a subsidiary of Unilever, one of the worlds leading suppliers of fast moving consumer

goods with strong local roots in more than 100 countries across the globe. Unilever has about52% shareholding in HUL. Hindustan Unilever was recently rated among the top four

companies globally in the list of Global Top Companies for Leaders by a study sponsored by

Hewitt Associates, in partnership with Fortune magazine and the RBL Group. The company was

ranked number one in the Asia-Pacific region and in India.

Hindustan Unilever's distribution covers over 1 million retails outlets across India directly and

its products are available in over 6.3 million outlets in India, i.e., nearly 80% of the retail outlets

in India. It has 39 factories in the country.

HUL launched a slew of new business initiatives in the early part of 2000s. Project Shakti was

started in 2001. It is a rural initiative that targets small villages populated by less than 5000

individuals. It is a unique win-win initiative that catalyses rural affluence even as it benefits

business. Currently, there are over 45,000 Shakti entrepreneurs covering over 100,000 villages

across 15 states and reaching to over 3 million homes.The mission that inspires HUL's more than 15,000 employees, including over 1,400 managers, is

to add vitality to life". The company meets every day needs for nutrition, hygiene, and personal

care, with brands that help people feel good, look good and get more out of life. It is a mission

HUL shares with its parent company, Unilever, which holds about 52 % of the equity. Hindustan

Unilever Network, Direct to home business was launched in 2003 and this was followed by the

launch of Pureit water purifier in 2004.

In 2002, HUL made its foray into Ayurvedic health & beauty centre category with the Ayush

product range and Ayush Therapy Centres. Hindustan Unilever Network, Direct to home

business was launched in 2003 and this was followed by the launch of Pureit water purifier in

2004.

SWOT Analysis

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STRENGTHHUL enjoys a formidable distribution network covering over 3400 distributors and 16 million

outlets. The new sales organization named 'One HUL' brings "Household and Personal

Care" and foods distribution networks together, thereby aligning all the units towards the

common goal of achieving success. HUL has been continuously able to grow at a rate more than

growth rate for FMCG Sector, thereby reaffirming its future stronghold in Indian market.

WeaknessesHUL market dominance, originating from its extensive reach and strong brand presence,

allowed it to raise the prices even as raw materials were getting cheaper. Hence, though the

volumes decreased, the margins grew, and company was able to earn more profits. But higher

margins attracted competition in areas of operations. HUL strategy remained focused on creating

power brands and earning higher margins. It was not left with any other option but to try cutting

down the costs in order to protect volumes, if not increase it.

OpportunitiesIndia is one of the world's largest producers of FMCG goods but its exports are miniscule as

compared to production. Though Indian Cos. has been going global, their focus is more towards

Asian countries because of the similar preferences. HUL is one of the top companies exporting

FMCG goods from India. An expansion of horizons towards more and more countries would

help HUL grow its consumer base and henceforth the revenues. Penetration levels for some

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major categories like skin-cream (22%), shampoo (38%), toothpaste (48%) and processed foods,

continue to remain low offerings but great growth opportunities products

ThreatsITC has reduced its dependence on the cigarettes business - Contribution of the core business in

revenues has come down from 87% in FY99 to 70% in FY05. Over a period of five years, ITC

has extended its presence into areas like foods, retailing, hotels, greetings, agriculture, paper,

etc. These are businesses that can give it growth impetus in the long run. With ITC gaining

momentum in each of these businesses, it is turning into a consumer monolith, and hence, the

greatest threat to HUL's Business.

Introductionof project

A. Competitor:

PRICE STRATEGY OF WATER PURIFIER:

Penetration strategy

Product price range started for 1000 5200

Very Low cost of maintenance and consumable

Low cost for product Best price for other than competitor

Attractive discount on replacement of device for customer

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No credit terms

Attractive allowance for dealers

PROMOTION / MARKETING COMMUNICATION STRATEGY OF

WATER PURIFIER:

Activated subscription immediately

Fastly installation of products

Properly repair services

Free Services during life time

Commercial TV advertisement

Advertisement in news paper ,Broacher

Sales force (8000+ across country)

Marketing surveys through:-

Kiosk

Demonstration

Cold call

4 PS ofMarketing Strategies

Product:-

The product is the physical product or service offered to the costumer. In thecase of physical product, it also refers to any services or conveniences that are part of the

offering. Product decision includes aspects such as functions, appearance, packaging, service,

warranty, etc.

Price:-

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Pricing decision should take into account profit margins and the probable pricing

response of competitors. Pricing includes not only the list price, but also discounts, financing,

and other options such as leasing.

Place:-

Place decisions are those associated with channels of distribution that serve as themeans for getting the product to the target customers. The distribution system performs

transactional, logistical, and facilitating functions.

Promotion:-Promotion decisions are those related to communicating and selling to potential

consumers. Since these costs can be large in proportion to the product price, a break-evenanalysis should be performed when making promotion decision. It is useful to know the value

off a customer in order to determine whether addition customers are worth the cost of acquiring

them.

How a pureit is better than other method water

purifier:

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A. ProductInformation

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Key Features PUREIT BOILING

PROCESS

LEADING UV

INLINE

PURIFIER

CANDLE

FILTER

Kills/Removes

harmful Viruses**

Yes 30-40 min Yes No

Kills/Removes

harmful Bacteria**

Yes 30-40 min yes No

Kills/Removes

harmful parasites

(causes

amoebiasis,diarrhea,

etc)**

Yes 30-40 min Yes No

End-of-life indicator Yes No Yes NoAuto switch-off yes No yes no

Great taste yes No Yes NoImproves clarity Yes No yes NoRemoves odour yes No Yes No

Doesnt need

expensive gas

Yes No Yes Yes

Doesnt need

expensive electricity

Yes Yes No Yes

Doesnt need

continuous tap water

yes Yes No yes

Doesnt need

plumbing

Yes Yes N0 Yes

Doesnt need an

expensive

Maintenance contract

Yes yes No yes

Low initial cost Yes Yes No YesLow on-going cost yes No No Yes


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

Performance:Pureit removes visible dirt, kills all viruses and bacteria, removes parasites

and pesticide impurities giving you water that is as safes as boiled water

Additional Features:

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

matter(turbidity)

b) Any time, any where performance: works

-without electricity

-without piped waterc) Convenience No hassles of boiling, No maintenance costs like plumbing

d) Cost Rs.1/- for every 4 liters of water

Technology:

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

municipal corporations for supply of potable water.

II. It kills all bacteria and viruses in water.

III. However chlorine added in water by these corporation is not done scientifically

especially in third world countries like. Hence the amount of chlorination may be moreor less depending on the quantity of water, Thus again making this water unsafe for

human consumption.

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Machine Features

Type of water purifier StorageStorage capacity(Liters) 9Method of purification

Purification stages 4

Pre-filter purification YesSilver-impregnated activated carbon

purification

yes

Reverse Osmosis noExteriorsMaterial of Body Food grade ABS plasticExterior FeaturesColours Available White and Maroon

Power Requirement no

Dimensions

Width (mm) 290DimensionsHeight(mm) 610Weight(kgs) 6.1

After Sales service Yes

Warranty period (years) 6 moths

Performance testing:

Leading scientific institutions

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Pureit is the worlds most advanced in-home water

purifier. Pureit, a breakthrough offering ofHindustan Unilever (HUL), provides complete

protection from all water-borne diseases, unmatched

convenience and affordability.

Pureits unique Germkill Battery technology kills allharmful viruses and bacteria and removes parasitesand pesticide impurities, giving you water that is "assafe as boiled water". It assures your family 100%protection from all water-borne diseases likejaundice, diarrhea, typhoid and cholera. Whatsmore, it doesnt need gas, electricity or continuoustap water supply.

1. Micro-fiber Mesh- Removes visible dirt

2. Compact Carbon Trap - removes remainingdirt, harmful parasites & pesticide impurities

3. Germkill Processor uses 'programmedchlorine release chlorine technology' and its storedGermkill process targets and kills harmful virus andbacteria

4. Polisher removes residual chlorine and alldisinfectant by-products, giving clear odourless andgreat tasting water

5. Battery Life Indicator - Ensures total safetybecause when the Germkill power is exhausted, theindicator turns red, warning you to replace thebattery

Advanced Auto-Switch off - In case, the battery isnot changed when it turns fully red, as an additionalassurance of safety, the advanced Auto-Switch offwill automatically switch-off the flow of water.


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Central food technology research institute.

National institute of cholera and enteric Diseases

Indian Public Health Association Institution of Public Health Engineers

Leading Medical Institutions:

King institute of preventive Medicine

Sundaram Medical Foundation

Apollo Hospitals

SRL Ranbaxy Clinical Reference laboratories

Leading international institutions

London school of Hygiene and Medicine UK

Scottish parasite Diagnostic Laboratory, Glassgow, UK

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

you with the information with which you can select the best water purifier device suitable for

your home. And its Benefits are logical reasons to allow the customer to justify to himself, his

own desire to buy.

This will help us to know the market tends demand and consumption patterns future prospectus

in term of potential growth consumer test and buying behavior for the HUL product water

purifier and other aspects related to channels and networks i.e. distribution. At the same time

some bottlenecks and loopholes in the entire process could also be taken into consideration for

their solution as well as betterments. In short following few aspects could be taken care of

through this study:-

To study distribution network of HUL.

To identify the attributes those compel the dealers to select the product.

To study about the relationship and association of the household with the company.

To identify the dealers response towards brands they are dealing.

To know about the credit policy of the company (motivational tools)

Popularity of company product among customers.

Customers opinion towards packaging.

To know about the awareness of drinking water used by various households.

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Methodology

Usually it is said that if marketing would be a train, then market research would be the

locomotive. In other words, market research should ideally be the starting point of any

marketing exercise. Conducting any marketing exercise be it related to pricing, promotion ordistribution of a product or service, without researching the potential market is as sensible as

setting out to sell sand in the Sahara desert.

Market research can help create a business plan, launch a new product or service, fine tune

existing products and services, expand into new markets etc. It can be used to determine which

portion of the population will purchase the product/service, based on variables like age, gender,

location and income level.

RESEARCH DESIGN:

This is the comprehensive master plan of the study undertaking given the general statement ofthe method used and procedure followed. It help the researcher to insure that the requisite data,

in accordance with the topics of the study of all the aspects of corporate management, it will also

be consist of detail understanding all the competitive brands of HUL, and an Questionnaire

study will be conducted of own walk in different companies study will be conducted of own

walk in different companies with the reference of HUL was descriptive in nature. It is a kind of

study, which is undertaken when the researcher is interested in knowing to which water purifier

is operating and tries to take an appointment so that I can explain about my product.

We are used Descriptive Research which includes survey and fact-finding enquiries of different

kinds. The main characteristics of this method are that the researchers have no control over thevariables; he can only report what has happened or what is happening. The major purpose of

descriptive research is description of the state of affairs as exists as present.

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Descriptive research design: -

Alone with some exploratory research was applied

which descriptive the state of affairs as they subsists. Descriptive research was used in the study

of marketing strategies for the sale of companys product also studying about the parameters

which affect the competitiveness of the product.

Sampling Design &Sample Size

Sampling is that part ofstatisticalpractice concerned with the selection of an unbiased orrandom subset of individual observations within a population of individuals intended to yieldsome knowledge about the population of concern, especially for the purposes of makingpredictions based on statistical inference. Sampling is an important aspect ofdata collection.

Researchers rarely survey the entire population for two reasons first one is when the cost is toohigh, and second is when the population is dynamic in that the individuals making up thepopulation may change over time. The three main advantages of sampling are that the cost islower, data collection is faster, and since the data set is smaller it is possible to ensurehomogeneity and to improve the accuracy and quality of the data.

Sampling Technique:For my survey we are used Cluster Sampling technique. We

are selected a sample of more than 1500 people around the area and interviewed them according

to the questionnaire. In the survey we are tried to find out their preferences & tastes, their

purchasing habit, are they brand loyal or they consider their friends advice or some reference

group during purchasing. We are also tried to find out that are they satisfied with the quality or

present stature of product, did they want any change in the existing product.

Accidental sampling:Accidental sampling is a type ofnon probability samplingwhich involves the sample being drawn from that part of the population which is close to hand.

That is, a sample population selected because it is readily available and convenient. The

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http://en.wikipedia.org/wiki/Statisticalhttp://en.wikipedia.org/wiki/Randomhttp://en.wikipedia.org/wiki/Population_(statistics)http://en.wikipedia.org/wiki/Statistical_inferencehttp://en.wikipedia.org/wiki/Data_collectionhttp://en.wikipedia.org/wiki/Nonprobability_samplinghttp://en.wikipedia.org/wiki/Sample_(statistics)http://en.wikipedia.org/wiki/Statisticalhttp://en.wikipedia.org/wiki/Randomhttp://en.wikipedia.org/wiki/Population_(statistics)http://en.wikipedia.org/wiki/Statistical_inferencehttp://en.wikipedia.org/wiki/Data_collectionhttp://en.wikipedia.org/wiki/Nonprobability_samplinghttp://en.wikipedia.org/wiki/Sample_(statistics)


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researcher using such a sample cannot scientifically make generalizations about the total

population from this sample because it would not be representative enough. For example, if the

interviewer was to conduct such a survey at a shopping center early in the morning on a givenday, the people that he/she could interview would be limited to those given there at that given

time, which would not represent the views of other members of society in such an area, if the

survey was to be conducted at different times of day and several times per week. This type of

sampling is most useful for pilot testing.

Collection of data:

Primary source:Sources from where first hand information is

gathered directly are called primary data.

1. Personal interviews:The interviewer asks questions generally in face to face

regarding product information. If customer does not know all information about product so wegive detail knowledge about product to customer.

2. Questionnaire method:

We are going to door to door and

asking sum specific question regarding HUL product and water purifier industry and we try to

generated need in customer to buy our product.

3. Telephonic interview:So, with regards to my study to collect the primary data we

went through the company records we call to past customer those who are bye already pure it

product. If any reference he want to give we collected them and then call to that customer but

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

telephone.

Data Collection Method:

The following method is widely used for collecting data:-

Questionnaire:

Questionnaire methods were mainly used for the undertaken topic.

Survey method was mostly used for collecting data through Questionnaire study with the

helped off the framed questionnaire, regarding survey a detailed study are conducted which

is consists of areas covering of all the aspects of corporate sector, this survey is also includes

the detail understanding of all the competitive brands of HUL through the framed

questionnaire to understand the physiology of the competitors, need of the customer,

problem facing by the customer etc.

Panel method :

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In this method, data is collected from the same samplerespondents at the some interval either by mail or by personal interview. This is used for

studies on:

1. Expenditure pattern.

2. Consumer behavior.

3. Effectiveness of advertising.

4. Voting behavior, etc.

LimitationsAlthough all the efforts have been made to make the results as accurate as possible, yet the

survey suffers from some limitations. Following are some of the limitations of the study. The

purpose of mentioning these limitations is not to dilute the quality of results rather to enable the

reader to judge the validity of the result regarding the study. Following are some limitation ofthe study.

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Lack of funds was the major abstraction to limit my survey to a small sample of

respondents.

Duration of study is also limited further intensive study field wise.

Many respondents were not interested to give the required time for the questionnaire.

There was only some certain hours in a day in the idle hours in which the

respondents was ready to talk.

Last but not the least weather was the most important constraint because it changes

continuously. However, the limitation has been judiciously counter balanced as far as

practicable. However the research of this type cannot be absolutely fixed in a

perpetual framework of time but spite of some inherent limitations, think that the

very report may be useful for the particular organization.

Analysis & Findings

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Interpretation-

After a survey of 1500 house holds, we are found that-

Pureit is the market leader in kalyan.

The sale of HUL water purifier is more then other purifier companies.

Aquaguard is the closest competitor of Pureit.

Due to entrance of new companies like Kent, Philips and usha, HUL is facing a tough

competition.

Comment on the price of your water purifier? Affordable

High

Should be Revised

Interpretation-

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

Affordable for 53% people,

The price is high for 30% people.

The water purifier Companies should reduce there prices but does not reduce

quality of the product in order to increase its market share

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Do you know that boiled water is not necessarily safe water? Yes

No

Interpretation

After a survey of about 1500 house holds, we are found that-

62% says that boil water is safe.

38% of the people have a opinion that boil water is safe only for few hours

This shows that even after boiling water isnot safe for drinking purpose.

Have you recently come across any kind of marketing activities for purifiers?

Kiosk

Demonstration

Direct Marketing

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T V Commercial

Interpretation- After a survey we are found that TV advertisement play main role in

making awareness. 70% People are coming for product knowledge through TV Commercial,

15% people come through direct marketing, 10 % People come through Kiosk and 5%

people are came demonstration marketing activity.

Do youget any type of after sale services from the Company?

Yes

No

Exceptional

Interpretation-after a survey, we are found that 52% water purifier not dependable on

company to timely service..

People are in need those companies who can provide them suggestions and can help in

solving there problems regarding the product they are using.

Criteria considered for Purchase?

1. Brand name

2. Technology

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3. Aesthetics

4. Price

Interpretation- In the survey of 1500 people randomly, I found that 30 people gives

importance to price and then after they consider the Brand name.

The technology used must also be considered by the Companies in order to increase

there profits.

Where you did heard about the product? TV commercial

Newspaper print ads

In shop branding

Friends references

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Interpretation: from that above graph it is clear that most portion of the households purchase

products of Companies by watching TV commercial advertisements. The Companies should be

more focused on TV commercial Advertisements.

Where do you prefer to buy a water purifier from? Retail Outlets

Franchisee dealers

Direct Marketing

Interpretation- in the survey we are found that people like to purchase water purifier by direct

marketing. In the survey we are found that 45% people preferred direct marketing, 35% people

preferred Retails outlets and 20% people preferred Franchisee to purchase the water purifier.

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1. Does the water purifier ensure that water is not wasted while purifying?

Yes

No

Do not know

When we ask to people its your purifier is wastage water the answer is given yes is 20% and

70% of the people said no but 10% of the people said we doesnt know about our purifier is

wasted the water or not waste the water.

1. Does it remove pesticide impurities from drinking water?

Yes

No

Do not know

Wastage

1. Does your water purifier consume more electricity?

Yes

No.

Do not know

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

3 months

6 months

Once in a year

More than a year

1. Does the water after purification taste good, is odorless, and looks clear?

Yes

No

Do not know

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

Yes

No

Exceptional

1. Does your water purifier comes with warranty if yes how much?

One year

Six month

Three month

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More than above

1. Have you recently come across any kind of marketing activities for purifiers?

Road shows

Visual merchandising

Direct marketing

TV Commercial

Those are said no we are not using any purifier we are trying to ask some specific

question like you see any tv commercial advertisement so almost 70% people are

said yes and when we ask you see any direct marking of any kind of purifier like

any kiosk so 15% people are said yes and if we ask you see any road shows of

purifier than only 5% people said yes and when we ask customer you see any visual

merchandising only 10% people are said yes we see visual merchandising.

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

Retail Outlets

Franchisee dealers

Demo at your door step

Direct marketing

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1. While buying any water purifier what comes to your mind first?

Price Health & safety

Both

For customer we ask when you buying any water purifier what comes to

your mind first for buying water purifier than 25% of people are said for us

price is more important. They wanted purifier but on low price. And 55%

people are said health and safety are more preference comparing to price.

And 20% people are said we are looking best product on best feature with

best price.

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Conclusion The project on direct marketing gives the deep understanding of all the aspect of directmarketing. Which cover all the key area for sellings. We are trying level best to cover all the

aspect of direct marketing of HUL water purifier pure it along with the competitors analysis ofthe HUL product. In spite of some limitations, the project is completed covering the detail study

of direct marketing.

Really, this project was like a challenge for me, we are accepted and completed with the best of

our efforts, knowledge and skills.

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Findings

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Approximately 40% market share is left, in and around kalyan, where no water purifier

machine is installed and which shows substantial sale of machine could be made in this

area by persuading the probable customers.

HUL should motivate its staff members to be more committed and loyal to the company

so that they can do value addition to HUL by serving better to the customer. Motivation

for store staff members include launching of incentive schemes like providing

commissions and awards like for the best who achieve the maximum sales target in the

year.

HUL should promote segmental targeting i.e. it should come up with schemes for

focused target segment.

Recommendations

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

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

After sale service is something which company should pay more attention on it.

All models not available for display in retail outlets and also broachers should be made

available.

TV advertisements can be renewed explaining the product feature and aggressive

marketing will help the company.

Sales person at the field or retails counters it should have proper knowledge about the all

type of product.

Should focus more on brand awareness.

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ANNEXURES :

Questionnaire

1. Do you use any kind of water purifier at home?

Yes

No

1. If yes, which purifier do you use?

Aquaguard or Auasuere

Pureit

Kent water purifier

Whirlpool pura fresh

Other

1. Does the water purifier ensure that water is not wasted while purifying?

Yes

No

Do not know

1. Does it remove pesticide impurities from drinking water?

Yes

No

Do not know

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1. Does your water purifier consume more electricity?

yes no

Do not know

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

3 months

6 months

Once in a year

More than a year

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

Yes

No

Cannot say

1. Does the water after purification taste good, is odorless, and looks clear?

Yes

No

Do not know

1. What technique does your water purifier uses?

Ultra violet

Reverse osmosis

E-boiling

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

----------------------------------------------------------------------------------------

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

Yes

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No

Exceptional

1. Does your water purifier comes with warranty if yes how much?

One year

Six month

Three month

More than above

1. Have you recently come across any kind of marketing activities for purifiers?

Road shows

Visual merchandising

Others

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

Retail Outlets

Franchisee dealers Demo at your doorstep

1. While buying any water purifier what comes to your mind first?

Price

Health & safety

Both

1. Have you recently come across any ad campaigns for water purifiers, if yes

which one and what did you really liked in the ad?

Name: age: Sex: M/F

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Address:

Bibliography

ConcernedBooks

1) Marketing management ---- Philip kotler

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

Magazines:

4Ps

Newspapers:

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Economics times

Websites:

www.hul.com

www.google.com

www.yahoo.com

www.pureitwater.com
http://www.hul.com/http://www.google.com/http://www.yahoo.com/http://www.pureitwater.com/http://www.hul.com/http://www.google.com/http://www.yahoo.com/http://www.pureitwater.com/

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