Anuja Kumar PROJECT

7/30/2019 Anuja Kumar PROJECT

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A study on effect of Advertisement on Buyers Behavior in FMCG Sector with special reference to Hindustan Unilever Limited.

J. L. Chaturvedi College of Engineering Department of Business Management, Nagpur

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EXECUTIVE SUMMARY

This project involves the study of advertisement effect on buyers behavior in FMCG

sector. During this project it was tried to know the advertisement watching/read /listening

interest of general customer and their effect on their buying behavior.

The main objective of this project includes knowing the Advertisement effect of HUL on

consumer mind as compare to others Company, to find out the Factors those are making

Advertisement effective for consumer, effective media for advertisements etc.

Its scope includes are to understand the important factors that are required for effective

Advertisement, to build product awareness and Brand Building in the Market, to

understand the customers perception towards advertisement.

This project covers various research methodology and sources of data.

Primary data is collected from consumer directly. Means it collected from customer by

questionnaires. While the source of secondary data is Book, Internet etc.

The research methodology is used in this project is mainly descriptive. And Hypothesis of

this project is null hypothesis.

There are various factors that make advertisement effective and change the perception of

customer. Like clear & fair message, Truthfulness, Celebrity promotion, Creativity in

advertisement etc.

Product detail information, Product quality, Differentiating point, Product punch etc are the factors

that make advertisement effective.

While we tried to minimize the effect of limitation on this project but still there are certain

limitation which is present in this project.


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Some suggestion and recommendation is also suggested by this project. Hope that it will be

helpful for the organization and others.

.


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ADVERTISEMENT

What is advertising?

The word advertising is derived from the Latin word viz, "advertero" "ad"

meaning towards and "verto" meeting towards and "verto" meaning. "I turn literally

specific thing".

Simply stated advertising is the art "says green." Advertising is a general term for

and all forms of publicity, from the cry of the street boy selling newspapers to the most

celebrate attention attracts device. The object always is to bring to public notice some

articles or service, to create a demand to stimulate buying and in general to bring together

the man with something to sell and the man who has means or desires to buy".

Advertising has been defined by different experts. Some of the quoted definitionsare:

American marketing association has defined advertising as "any paid form of non personal

presentation and promotion of ideas, goods or services by an identified sponsor. The

medium used are print broad cast and direct.

Stanton deserves that "Advertising consists of all the activities involved in presenting

to a group a non- personal, oral or visual openly, sponsored message regarding a product,

service, or idea. This message called an advertisement is disseminated through one or more

media and is paid for by the identified sponsor.


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Advertising is any paid form of non personal paid of presentation of ideas goods or

services by an identified sponsor.

Advertising is a "non- personal paid message of commercial significance about a

product, service or company made to a market by an identified sponsor.

In developing an advertising program, one must always start by identifying the

market needs and buyer motives and must make five major decisions commonly referred as

5M (mission, money message, media and measurement) of advertising.

INTRODUCTION OF ADVERTISING EFFECTIVENESS

The objectives of all business are to makes profits and a merchandising concern can do that

by increasing its sales at remunerative prices. This is possible, if the product is widely

polished to be audience the final consumers, channel members and industrial users and

through convincing arguments it is persuaded to buy it. Publicity makes a thing or an idea

known to people. It is a general term indicating efforts at mass appeal. As personal

stimulation of demand for a product service or business unit by planting commercially

significant news about it in a published medium or obtaining favorable presentation of it

upon video television or stage that is not paid for by the sponsor.

On the other hand, advertising denotes a specific attempt to popularize a specific

product or service at a certain cost. It is a method of publicity. It always intentional openly

sponsored by the sponsor and involves certain cost and hence is paid for. It is a common

form of non- personal communication about an organization and or its products idea

service etc. that is transmitted to target audiences through a mass medium. In common

parlance the term publicity and advertising are used synonymously.


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Basic Features of Advertising:

On the basis of various definitions it has certain basic features such as:

1. It is a mass non-personal communication.

2. It is a matter of record.

3. It persuades buyers to purchase the goods advertised.

4. It is a mass paid communication.

5. The communication media is diverse such as print (newspapers and magazines)

6. It is also called printed salesmanship because information is spread by means of the

written and printed work and pictures so that people may be induced to act upon it.

Functions of Advertising:

For many firms advertising is the dominant element of the promotional mix

particulars for those manufacturers who produce convenience goods such as detergent, non

prescription drugs, cosmetics, soft drinks and grocery products. Advertising is also used

extensively by maters of automobiles, home appliances, etc, to introduce new product and

new product features its uses its attributes, pt availability etc.

Advertising can also help to convince potential buyers that a firms product or

service is superior to competitors product in make in quality, in price etc. it can create

brand image and reduce the likelihood of brand switching even when competitors lower

their prices or offer some attractive incentives.

Advertising is particularly effective in certain other spheres too such as:

I) When consumer awareness of products or service is at a minimum.

ii) When sales are increasing for all terms in an industry.


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iii) When a product is new and incorporates technological advance not strong and.

iv) When primary buying motive exists.

It performance the following functions:

i) Promotion of sales

ii) Introduction of new product awareness.

iii) Mass production facilitation

iv) Carry out research.

v) Education of people.

Types of Advertising:

Broadly speaking, advertising may be classified into two categories viz., product and

institutional advertising.

a) Product Advertising:

The main purpose of such advertising is to inform and stimulate the market about the

advertisers products of services and to sell these. Thus types of advertising usually

promote specific, trended products in such a manner as to make the brands seam more

desirable. It is used by business government organization and private non-business

organizations to promote the uses features, images and benefits of their services and

products. Product advertising is sub-divided into direct action and indirect actionadvertising, Direct action product advertising wages the buyer to take action at once, ice he

seeks a quick response to the advertisement which may be to order the product by mail, or


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mailing a coupon, or he may promptly purchase in a retail store in response to prince

reduction during clearance sale.

Product advertising is sub-divided into direct & indirect action advertising &

Product advertising aims at informing persons about what a products is what it does, how it

is used and where it can be purchased. On the other hand selective advertising is made to

meet the selective demand for a particular brand or type is product.

b) Institutional Advertising:

It is designed to create a proper attitude towards the sellers to build company

image or goodwill rather than to sell specific product or service. Its purpose is to

create a frame of mind and to implant feeling favorable to the advertisers company.

Its assignment is to make friends for the institution or organization.

It is sub-divided into three categories: patronage, public, relations and public Service

institutional advertising.

i) In patronage institutional advertising the manufacturer tells his prospects and Customer

about himself his policies and lives personnel. The appeals to the Patronage motivation ofbuyers. If successful, he convinces buyers that his Operation entitles him to the money

spent by them.

ii) Public relations institutional advertising is used to create a favorable image of the firm

among employees, stock-holders or the general public.

iii) Public service institutional advertising wages public support.

c) Other Types:

The other types are as follows:


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i) Consumer advertising.

ii) Comparative advertising.

iii) Reminder advertising.

iv) Reinforcement advertising.

Advertising objectives:

The long term objectives of advertising are broad and general, and concern the

contribution advertising should make to the achievement of overall company objectives.

Most companies regard advertising main objective as hat of proving support to personal

selling and other forms of promotion. But advertising is a highly versatile communications

tools and may therefore by used for achieving various short and long term objectives.

Among these objectives are the following:

1. To do the entire selling job (as in mail order marketing).

2. To introduce a new product (by building brand awareness among potential

buyers).

3. To force middlemen to handle the product (pull strategy).

4. To build brand preference by making it more difficult for middleman to sell substitutes).

5. To remind users to buy the product (retentive strategy).

6. To publicize some change in marketing strategy (e.g., a price change, a new model or an

improvement in the product).

7. To provide rationalization (i.e. socially acceptable excuses).

8. To combat or neutralize competitors advertising.


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9. To improve the moral of dealers and/or sales people (by showing that the

company is doing its share of promotion).

10. To acquaint buyers and prospects with the new uses of the product (to extend the PLC).

Benefits:

The functions of advertisement, and that purpose its ethics, may be discussion

below:

1. It leads to cheaper prices. "No advertiser could live in the highly competitive arena of

modern business if his methods of selling were more costly than those of his rivals."

2. It acquaints the public with the features of the goods and advantages which buyers will

enjoy.

3. It increases demand for commodities and this results in increased production.

Advertising:

a) Creates and stimulates demand opens and expands the markets.

b) Creates goodwill which loads to an increase in sales volume.

c) Reduces marketing costs, particularly product selling costs.

d) Satisfied consumer demands by placing in the market what he needs.

4. It reduces distribution expenses in as much as it plays the part of thousands of salesman

at a home. Information on a mass scale relieves the necessity of expenditure on sales

promotion staff, and quicker and wider distribution leads to diminishing of the distribution

costs.


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5. It ensures the consumers better quality of goods. A good name is the breath of the life to

an advertiser.

6. By paying the way for large scale production and increased industrialization, advertising

contributes its quota to the profit of the companies the prosperity of the shareholder the

uplifts of the wage earners and the solution of the unemployment problem.

7. It raises the standard of living of the general public by impelling it to use to articles of

modern types which may add to his material well being. "Modern advertising has made

the luxuries of yesterday the necessities of today. It is a positive creative force in

business. It makes two blades of grass grow in the business world where one grew before.

8. It establishes the goodwill of the concern for the test articles produced by it and in

course of time they sell like hot cakes consumer search for satisfaction of their needs

when they purchase goods what they want from its beauty, superiority, economy,

comfort, approval, popularity, power, safety, convenience, sexual gratification and so on.

The manufactures therefore tries to improve this goodwill and reputation by knowing the

buyer behavior.

To sum up it may be said that advertising aims at committing the producers, educating the

consumer, supplementing the salesman converting the producer and the dealer to eliminatethe competitor, but above all it is a link between the produce and the consumer.

Why & When to Advertise?

Advertising as a tool to marketing not only reaches those who buy, but also those whose

opinions or authority is counted for example a manufacturer of marble Tiles and building

boards advertises not only to people who intend to build houses but Also to architect and

engineers. While the manufacturers of pharmaceuticals products Advertise to doctors as

well as to the general public. At time it is necessary for a Manufacturer or a concern to


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advertise things which it does not sell but which when Sold stimulates the sales of its own

product. There are concerns like electric heaters, Iron etc. because the use of these

increases the demand for their products.

Advertising should be used only when it promises to bring good result more

economically and efficiently as compared to other means of selling. There are goods for

which much time and efforts are required in creating a demand by sending

Salesman to prospective buyers than by simply advertising them. In the early days of the

cash register in America it was sold by specially trained salesman who called on the

prospective users and had the difficult task of convincing them that they could no Longer

carry on with the old methods, and that they urgently needed a cash register. In Our

country certain publishers have found it less costly to sell their books by sending Salesman

from house to house among prospective buyers than to advertise them. In these two

examples the cost of creating demand would be too high if attempted by Advertising alone

under such circumstances advertising is used to make the salesman acceptable to the people

they call upon to increase the confidence of the public in the house. Naturals when there

are good profits competitors will be attracted and they should be kicked out as and when

sufficient capital is available by advertising on a large scale. Immediate result may not

justify the increased expenditure but it will no doubt secure future sales.

Designing advertising campaign:

Advertising is an organized series of advertising messages. It has been defined as "a

planned, co-ordinate series of promotional efforts built around a central theme and

designed to reach a specified goal." In other words, it is an orderly planned effort

consisting of related but self contained and independent advertisements. The

campaign may appear in one more media. It has single theme or keynote idea and a single

objective or goal. Thus, "a unified theme of content provides psychological continuity

throughout the campaign while visual and oral similarities provide physical continuity. In


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short run, all campaign want pre-determined psychological reaction in the long run,

practically all campaigns have sales goal.

The series of advertisements used in the campaign must be integrated with the sales

promotional efforts and with the activities of the sales force. Campaign varies in length

some may run only for a few days, other for weeks, yet other for a season or the entire

year. Usually a range of 3 to 6 months includes many campaigns. Many factors influences

campaign length such as competitors advertising media, policies, seasonal falls curves

of the product involved, the size of the advertising funds, campaign objectives and

the nature of the advertisers marketing programme.

Objectives of campaign:

The advertising campaign, especially those connected with the consumers aims at

achieving these objectives:

i) To announce a new product or improve product.

ii) To hold consumers patronage against intensified campaign use.

iii) To inform consumers about a new product use.

iv) To teach consumers how to use product.

v) To promote a contest or a premium offer.

vi) To establish a new trade regional, and

vii) To help solve a coca regional problem.

The institutional advertising campaign on the other hand, has these objectives.

i) To create a corporate personality or image.

ii) To build a company prestige.


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iii) To keep the company name before the public.

iv) To emphasize company services and facilities.

v) To enable company salesman to see top executive consistently when making sales calls,

and

vi) To increase friendliness and goodwill towards the company.

BUYERS BEHAVIOR

Consumer behavior is the study of when, why, how, and where people do or do not buy a

product. It blends elements from psychology, sociology, social anthropology and

economics. It attempts to understand the buyer decision making process, both individually

and in groups. It studies characteristics of individual consumers such as demographics and

behavioral variables in an attempt to understand people's wants. It also tries to assess

influences on the consumer from groups such as family, friends, reference groups, and

society in general.

Customer behavior study is based on consumer buying behavior, with the customer playing

the three distinct roles of user, payer and buyer. Research has shown that consumer

behavior is difficult to predict, even for experts in the field. Relationship marketing is an

influential asset for customer behavior analysis as it has a keen interest in the re-discovery

of the true meaning of marketing through the re-affirmation of the importance of the

customer or buyer. A greater importance is also placed on consumer retention, customer

relationship management, personalization, customization and one-to-one marketing. Social

functions can be categorized into social choice and welfare functions.


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Figure: - Buyer behavior - The decision-making process


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INTRODUCTION TO COMPANY

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods

Company with a heritage of over 75 years in India and touches the lives of two out of threeIndians.


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HUL works to create a better future every day and helps people feel good, look good and

get more out of life with brands and services that are good for them and good for others.

With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos,

skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and

water purifiers, the Company is a part of the everyday life of millions of consumers across

India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel,

Rin, Wheel, Fair & Lovely, Ponds, Vaseline, Lakm, Dove, Clinic Plus, Sunsilk,

Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Walls and Pureit.

The Company has over 16,000 employees and has an annual turnover of around Rs.19, 401

crores (financial year 2010 - 2011). 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 with annual sales of about 44 billion in 2011. Unilever has

about 52% shareholding in HUL.

Company History


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In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight soap

bars, embossed with the words "Made in England by Lever Brothers". With it began an era

of marketing branded Fast Moving Consumer Goods (FMCG).

Soon after followed Lifebuoy in 1895 and other famous brands like

Pears, Lux and Vim. Vanaspati was launched in 1918 and the famous Dalda brand came to

the market in 1937.

In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing

Company, followed by Lever Brothers India Limited (1933) and United Traders Limited

(1935). These three companies merged to form HUL in November 1956; HUL offered 10%

of its equity to the Indian public, being the first among the foreign subsidiaries to do so.

Unilever now holds 52.10% equity in the company. The rest of the shareholding is

distributed among about 360,675 individual shareholders and financial institutions.

Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold

through an international acquisition of Chesebrough Pond's USA in 1986.

The liberalization of the Indian economy, started in 1991, clearly marked an inflexion in

HUL's and the Group's growth curve. Removal of the regulatory framework allowed the

company to explore every single product and opportunity segment, without any constraints

on production capacity.

Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the

most visible and talked about events of India's corporate history, the erstwhile Tata Oil

Mills Company (TOMCO) merged with HUL, effective from April 1, 1993. In 1996, HUL

and yet another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme


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Unilever Limited, to market Lakme's market-leading cosmetics and other appropriate

products of both the companies. Subsequently in 1998, Lakme Limited sold its brands to

HUL and divested its 50% stake in the joint venture to the company.

HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994,

Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary Pads. HUL

has also set up a subsidiary in Nepal, Unilever Nepal Limited (UNL), and its factory

represents the largest manufacturing investment in the Himalayan kingdom. The UNL

factory manufactures HUL's products like Soaps, Detergents and Personal Products both

for the domestic market and exports to India.

As a measure of backward integration, Tea Estates and Doom Dooma, two plantation

companies of Unilever, were merged with Brooke Bond. Then in 1994, Brooke Bond India

and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL), enabling

greater focus and ensuring synergy in the traditional Beverages business. 1994 witnessed

BBLIL launching the Wall's range of Frozen Desserts. By the end of the year, the company

entered into a strategic alliance with the Kwality Icecream Group families and in 1995 the

Milkfood 100% Icecream marketing and distribution rights too were acquired.

Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internalrestructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998.

The two companies had significant overlaps in Personal Products, Speciality Chemicals

and Exports businesses, besides a common distribution system since 1993 for Personal

Products. The two also had a common management pool and a technology base..

In January 2000, in a historic step, the government decided to award 74 per cent equity in

Modern Foods to HUL, thereby beginning the divestment of government equity in public

sector undertakings (PSU) to private sector partners. HUL's entry into Bread is a strategic

extension of the company's wheat business. In 2002, HUL acquired the government's

remaining stake in Modern Foods.


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In 2003, HUL acquired the Cooked Shrimp and Pasteurised Crabmeat business of the

Amalgam Group of Companies, a leader in value added Marine Products exports.

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.

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.

In 2007, the Company name was formally changed to Hindustan Unilever Limited after

receiving the approval of share holders during the 74th AGM on 18 May 2007. Brooke

Bond and Surf Excel breached the Rs 1,000 crore sales mark the same year followed by

Wheel which crossed the Rs.2, 000 crore sales milestone in 2008.

On 17th October 2008, HUL completed 75 years of corporate existence in India


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Company structure

Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods (FMCG)

Company. It is present in Home & Personal Care and Foods & Beverages categories.

HUL has about 15,000 employees, including over 1400 managers.

The fundamental principle determining the organization structure is to infuse speed and

flexibility in decision-making and implementation, with empowered managers across the

companys nationwide operations.

Board of Directors:

The Board of Directors of the Company represents an optimum mix of professionalism,

knowledge and experience. The total strength of the Board of Directors of the Company is

nine Directors, comprising Non-Executive Chairman, four Executive Directors and four

Non-Executive Independent Directors.

Mr. Harish Manwani -

Chairman

Mr. Harish Manwani (57)

assumed charge as the Non-

Executive Chairman of the

Company with effect from 1st

July, 2005.


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Mr. Nitin Paranjpe - CEO

and Managing Director

Mr. Nitin Paranjpe (48) joined

the Company as a ManagementTrainee in 1987. In his early

years in the Company, Mr.

Paranjpe worked as Area Sales

Manager - Detergents and then

Product Manager - Detergents.

Mr. R. Sridhar - Chief

Financial Officer

Mr. Gopal Vittal - Executive

Director, Home &

Personal Care.

Mr Pradeep Banerjee -

Executive Director,

Supply Chain

Mr. O. P. Bhatt -

Independent Director

Mr. A. Narayan -



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Mr. S. Ramadorai -


Dr. R. A. Mashelkar - Independent Director

Company vision:

Unilever products touch the lives of over 2 billion people every day

whether that's through feeling great because they've got shiny hair and

a brilliant smile, keeping their homes fresh and clean, or by enjoying a

great cup of tea, satisfying meal or healthy snack.

The four pillars of our vision set out the long term direction for the

company where we want to go and how we are going to get there:

We work to create a better future every day

We help people feel good, look good and get more out of life

with brands and services that are good for them and good for

others.


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We will inspire people to take small everyday actions that can

add up to a big difference for the world.

We will develop new ways of doing business with the aim of

doubling the size of our company while reducing our

environmental impact.

Purpose & principles:

Our corporate purpose states that to succeed requires "the highest

standards of corporate behavior towards everyone we work with, the

communities we touch, and the environment on which we have an

impact."

Always working with integrity.

Positive impact.

Continuous commitment.

Setting out our aspirations.

Working with others.

COMPANY BRANDS

Food brands:

HUL is one of Indias leading food companies. Our passion forunderstanding what people want and need from their food - and what

they love about it - makes our brands a popular choice.


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The popular brands of HUL are:

Annapurna

Partnering with the mom in

nurturing her dreams,

Annapurna Atta is aimed at

helping her provide wholesome

tasty nutrition to her family.

Red Label

Brooke Bond Red Label

'Chuskiyaan Zindagi ki'

Brooke Bond Taaza

Brooke Bond Taaza

Kissan

Eat Happily. Grow Happily.

Kwality Walls

A good honest scoop of daily

pleasure.

Lipton

Lipton has a range of vitality

teas that truly encompass the

goodness of tea

Home care brands:


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HUL has a diverse portfolio of brands offering home care solutions for

millions of consumers across India.

Active Wheel

New Active Wheel with

Power of lemons and freshness

of thousands of flowers!

Comfort

The worlds largest fabric

conditioner brand.

Domex

The sheer power of Domex

bleach gives you the

confidence you need,

eradicating all known germs.

Rin

Rin provides best in class

whiteness which is

demonstrable.

Surf Excel

Giving your kids the freedom

to get dirty and experience life,

safe in the knowledge that Surf

Excel will remove those stains


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Vim

Created in 1885, the Vim brand is

still innovating and using the

magic of natural ingredients to

create unbeatable results over ahundred years late

Personal care brands:

Our personal care brands, including Axe, Dove, Lux, Pond's, Rexonaand Sunsilk, are recognised and love by consumers across India. They

help consumers to look good and feel good and in turn get more out

of life.

Axe

Axe with Best Quality

Fragrance

Clear

New CLEAR with Nutrium 10goes 3 layers deep** into the

scalp to nourish such that

Dandruff Wont Come Back*!

Clinic Plus

Clinic Plus - makes hair insidestrong, outside long!

Closeup

Freshness that brings youCloser

Sunsilk

Sunsilk has had a re-style


Page 27
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Fair & Lovely

More than 30 years ago, a

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Pepsodent

Pepsodent India is committedto improve the overall Oral

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Ponds

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Lakme

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Lux

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Lifebuoy

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Page 28
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Pears

Pears the purest and most

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Vaseline

Your skin is amazing. It

deserves to be treated as such.

Breeze

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glyceringives soft, fragrant and smooth

skin.

Liril 2000

Liril 2000-Now come closer to

your loved ones.

Water:

Pureit is the worlds most advanced in-home water purifier. Pureit, a

breakthrough offering of Hindustan Unilever (HUL), provides

complete protection from all water-borne diseases, unmatched

convenience and affordability.


Page 29
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Pureits unique Germkill Battery technology kills all harmful viruses

and bacteria and removes parasites and pesticide impurities, giving you

water that is "as safe as boiled water". It assures your family 100%

protection from all water-borne diseases like jaundice, diarrhea,

typhoid and cholera. Whats more, it doesnt need gas, electricity or

continuous tap water supply.

Pureit not only renders water micro-biologically safe, but also makes

the water clear, odourless and good-tasting. Pureit does not leave any

residual chlorine in the output water.

1. Micro-fiber MeshTM - Removes visible dirt

2. Compact Carbon TrapTM - removes remaining dirt, harmful

parasites & pesticide impurities

3. Germkill ProcessorTM uses 'programmed chlorine release chlorine

technology' and its stored germkill process targets and kills harmful

virus and bacteria

4. PolisherTM removes residual chlorine and all disinfectant by-

products, giving clear odourless and great tasting water

5. Battery Life Indicator - Ensures total safety because when the

germkill power is exhausted, the indicator turns red, warning you to

replace the battery

Advanced Auto-Switch off - In case, the battery is not changed when

it turns fully red, as an additional assurance of safety, the advanced

Auto-Switch off will automatically switch-off the flow of water.


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OBJECTIVE

The main objective of the study is as follows:-

To know the Advertisement effect of HUL on consumer mind

as compare to others Company.

To find out the Factors those are making Advertisement

effective for consumer.

How does the Advertisement of HUL persuade to purchase a

Product to consumer?

To know the different form (Media) of Advertisement that

HUL require in different area to convince the different type of

consumer.


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HYPOTHESIS

Fair and clear Advertisement creates a positive impact on

consumer mind.

Advertisement is important and essential for company

Television is the most effective medium for advertisements

of FMCG product.


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SCOPE OF STUDY

This project is helpful for FMCG sector to understand the

important factors that are required for effective Advertisement.

This project is helpful to build product awareness and Brand

Building of HUL in the Market.

This project is helpful for HUL to understand the customers

perception towards advertisement.

This project is helpful for HUL to launching new Products in

future with focus on right type of advertisement campaigning.


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7.1 Research design:

A research design is the arrangement of condition and analysis of data

a manner that aims to combine relevance to the research purpose with

economy in procedure.

Types of research design-

1) Descriptive design.

2) Diagnostic design.

3) Exploratory method.


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7.2 Primary data

Primary data is the data that is collected for specific purpose or for a

specific research project, the source of data for this study was basically

the primary data. Primary data for this project was collected through

field survey, by face to face interview, through questionnaires and

paper sources.

7.3 Secondary data

Secondary data is the data that was collected initially and already

exists in the form of reports, journals, articles (on published data), on

website etc.

7.4 Population

In statistical usages the term population is applied to any finite or

infinite collection of individuals. In this case the population includes

the total number of customer in Nagpur Nandanvan area. .

7.5 Sample size

It is a part of population or a subset from a set of units, which is

provided by some process or other usually by deliberate selection with

the object of investigating the properties of the parent population.

Sample size: - 200 customers.


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7.6 Sampling method

The sample for the study was confined to the general customers.

Random sampling was done for survey. A random sample gives every

unit of the population a known and non-zero probability of being

selected.

Since random sampling implies equal probability to every unit in the

population, it is necessary that the selection of the sample must be free

from human judgment.

7.7 Method of data collection

The data collection was primary in nature. The data was collected

through direct contact with respondent. This method also helps to get

fresh and accurate information for analysis of the problem faced by

organization. The sample was chosen based on area. The Nandanvan

market is residential area. The respondent from these area are selected

randomly.

However some secondary data was also collected from company

record and previous market research.


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Q.1) Do you see/watch/hear advertisement?

Table-1


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Option No. of Respondent % of Response

Yes 194 97

No 6 6

Total 200 100

Chart-1

97%

3%

Do you see/watch/hear advertisement?

Yes

No

Interpretation:-

From above data we found that maximum number of customer

see/watch/hear advertisement, while very few number of people

said they dont see/watch/hear advertisement,

Q.2) Do you purchase a product after watching advertisement?


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Table-2


Yes 90 45

No 30 15

Sometime 80 40Total 200 100

Chart-2

Yes

45%

No15%

Sometime

40%

Do you purchase a product after watching advertisement?

Interpretation:-

From above data we found that maximum customer purchasethe product after watching advertisement.

Many people said that sometime they purchase the productafter watching the advertisement

While few customer has negative view on this question.


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Q.3) Which media or mode of advertisement you mostly

prefer?

Table-3


TV 160 80

Radio 10 5

Newspaper 20 10

Other 10 5

Total

Chart-3

0

10

20

30

40

50

60

70

80

TVRadio

NewspaperOther

which media or mode of advertisement you mostly prefer?

Interpretation:

Television is the most effective media for advertisement of

FMCG product, while secondary priority newspaper.


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Radio and other media dont have much significant for

advertisement of FMCG product.

Q.4) Which Brand or product advertisement in FMCG sector

you like mostly?

Table-4


HUL 114 57

Dabur 34 17

ITC 44 22

Other 8 4

Total 200 100

Chart-4

0

20

40

60

80

100

120

HUL Dabur ITC Other

Which Brand or product advertisement in FMCG sector you like

mostly?

Which Brand or product

advertisement in FMCG

sector you like mostly?

Interpretation:


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From above data we found out that consumers are mostlyattracted by Hindustan Unilever Limited product

advertisement.

ITC also attract customer up to certain level.

It shows that HUL advertisement is more effective as compareto other company in FMCG sector.

Q.5) Why do you like such advertisement?

Table-5


Clear & fair message 82 41

Truthfulness 36 18

Celebrity promotion 26 13

Creativity 46 23Other 10 5

Total 200 100

Chart-5


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0

10

20

30

40

50

60

70

80

90

Clear & fair

message

Truthfullness Celebrity

pramotion

Creativity Other

Why do you like such advertisement?

Interpretation:

From above data we found out that clear and fair message

attract consumer mostly.

Creativity and truthfulness in advertisement also important

factor for the customer.

Celebrity promotion also attract customer up to some extent.

Q.6) What are the factors that make advertisement effective

according to you?

Table-6


Product information 50 25

Product quality 54 27

Differentiating point 10 5

Product punch line 16 8

All 68 34


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Any other 2 1

Total 200 100

Chart-6

50 54

10 16

68

2

What are the factors that make advertisement effectiveaccording to you?

Interpretation:

From above data we found that all factors (product information,

product quality, product punch line etc) make advertisement

more effective.

Q.7) Do you think above factors are present in HUL

advertisement?

Table-7



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Yes 118 59

No 28 14

up to certain extent 54 27

Total 200 100

Chart-7

Do you think above factors are present in

HUL advertisement?

Yes

No

Upto certain extent

Interpretation:

From above data it is clear that most of consumers thought that

the factors which make the advertisement effective are present

in HUL advertisement.

While some customers thought that it is present up to certainextent.

Few customers have given negative answer also to the question.

Q.8) Is the advertisement of HUL changes your purchase

decision or perception towards product?

Table-8


Yes 90 45No 26 13

Sometime 84 42

Total 200 100


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Chart-8

020

40

60

80

100

YesNo

Upto certain

extent

90

26

84

Interpretation:

From the above graph it is clears that HUL advertisement

mostly changes the perception of consumers.

42% customer said that HUL advertisement changed their

perception up to certain extent.

Here negative answer is also given by FEW customer and they

dont feel that HUL advertisement changed their perception.

Q.9) How does advertisement of HUL changes your purchase


Table-9


By celebrity promotion 48 24

By changing perception 48 24

By detailing product features 96 48

Other 8 4

Total 200 100

Chart-9


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By celebrity

promotion

24%

By changing

perception

24%

By detailing

product features

48%

Other

4%

How does advertisement of HUL changes your purchase


Interpretation:

By detailing product features it changes consumer

perception/purchase decision.

Celebrity promotion also one of the factor that changescustomers perception towards the product.

Q.10) From where you get maximum information about

product?

Table-10


TV 148 74

Radio 10 5Newspaper 32 16

Other 10 5

Total 200 100


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Chart-10

0

20

40

60

80

100

120

140

160

TV Radio Newspaper Other

148

10

32

10

From where you get maximum information about product?

Interpretation:

From above data we found that consumer get maximum

information about product is from TV.

While newspaper has also some impact.

Other media doesnt keep much important.

Q.11) In advertisement what factor insists you to purchase the

product?

Table-11


Product message appeal 32 16

Product promotion method 28 14


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Product design 48 24

Product information 26 13

All 64 32

Other 2 1

Total 200 100

Chart-11

16%

14%

24%

13%

32%1%

In advertisement what factor insists you to purchase the product?

Product message appealProduct promotion method

Product design

Product information

All

Other

Interpretation:

From above data we found that all factors (product message

appeal, product promotion method, product design, and product

information) insist customer to purchase the product.

Q.12) Which media advertisement is more effective/necessary

for sale of FMCG product?

Table-12


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TV 148 74

Newspaper 30 15

Magazine 14 7

Other 8 4

Total 200 100

Chart-12

0

20

40

60

80

100

120

140

160

TVNewspaper

MagazineOther

148

30

148

Which media advertisement is more effective/necessary for sale of FMCG product?

Interpretation:

Above data show that TV is most effective media for sale of

FMCG products.

Newspaper is also little bit effective medium.

While other media doesnt has significant value.

Q.13) Do you think the advertisement is necessary for sale of

FMCG Product?


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Table-13

Option No. of Respondents % of Response

Necessary 96 48

Very Necessary 76 38Not Necessary 12 6

Cant Say 16 8

Total 200 100

Chart-13

48%

38%

6%

8%

Do you think the advertisement is necessary for sale of FMCGProduct?

Necessary Very necessary Not necessary Can't say

Interpretation:

From above data we found out that advertisement necessary for

sale of FMCG product.


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Very few customers have said that it is not necessary.


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FINDING OF STUDY

1. 97% (Majority of customer) watch/see/hear advertisement.

2. As per opinion of customer most of customer purchase the

product after watching /see/ hearing advertisement.

3. 80% customer prefers Television as an advertising media, and

very few prefer other media of advertisement of FMCG

product.

4. Mostly customer like HUL advertisement as compare to other

company in FMCG sector.

5. Clear and fair message attract customer mostly and creativity

also attract up to some extent.

6. Mostly customer said that all factors (product quality, product

information, product punch line, differentiating point) make

advertisement more effective.

7. Majority of customer told that above factors are present in

HUL advertisement, while some negative answer was also

present.

8. Mostly customer feel that HUL advertisement changed their

perception/towards product.

9. Detailing product features and celebrity promotion mostly

change the perception of customer towards the product.


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10. TV plays a major role in spreading information as compare to

other medium.

11. Mostly all factors (product message appeal, Product promotion

method, product information, product design) insist customer to

purchase the product.

12. According to customer point of view TV is the most effective

mode of advertisement for FMCG product, as compare to other

media.

13. Majority of customer said that advertisement is necessary for

sale of FMCG product.


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CONCLUSION

Majority of customer see/watch/hear advertisement.

Advertisement also helps the customer to purchase a product.

Television is the most effective media for advertisement toattract customer.

HUL advertisement mostly attracts the customer in FMCGsector.

Clear and fair message is effective way to attract customer.


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Many factors including Product information, Product quality,Differentiating point, Product punch line is necessary to make

advertisement effective.

Above factors are present in HUL product.

HUL advertisement mostly changes the perception ofcustomer towards the product.

Mostly customer gets information about the product fromTelevision.

Television is most effective media of advertisement forFMCG product.

Advertisement is necessary for sale of FMCG product.


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SUGGESTION AND RECOMMENDATION

Advertisement is essential for FMCG Company.

Advertisement should mostly broadcast on Televisionto attract customer.

HUL need some change or creativity in theiradvertisement so those unconvinced customers also like

it.

HUL should give more emphasis on clear and fairmessage and creativity in advertisement.


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LIMITATION

The study was thoughtful for knowing the analysis of effect of

advertisement on buyers behavior in FMCG sector with special

reference to HUL, Nagpur.

Preparing this project report, still there were some limitations. These

limitations are unavoidable. Some major limitations which I faced

while preparing this project are as follows:

The main limitations of the study are:-

The study is based on only in the Nagpur City in Nandanvan

area.

The study was restricted to FMCG products only.

Study may not fully represent the whole population.

I was able to interact and analyses only 200 questionnaires

which were very less to know about perception of people incurrent market towards advertisement.


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Some respondents showed unwillingness in responding the

questionnaire due to time factor.

Some respondents were not able to fill the questionnaire

properly. They leave some questions and dont feel necessary

to answer.

Owing to their pre occupation some customers were unable to

answer the complete questionnaire.

The project was constrained by time limit.


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BIBLIOGRAPHY

Book referred:


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Website:

http://www.hul.co.in/aboutus/introductiont

ohul/

http://en.wikipedia.org/wiki/Hindustan_Unil

ever

http://en.wikipedia.org/wiki/Consumer_beh

aviour


Page 67

Sr.

No.

Title Author Publication Edition

1. Research

Methodology

C. R. Kothri New Age

International

2nd revised

edition

2. Marketing

Management

Philip Kotlar and

Kelvin Keller

Pearson Hall

Publication

12th edition
http://www.hul.co.in/aboutus/introductiontohul/http://www.hul.co.in/aboutus/introductiontohul/http://en.wikipedia.org/wiki/Hindustan_Unileverhttp://en.wikipedia.org/wiki/Hindustan_Unileverhttp://en.wikipedia.org/wiki/Consumer_behaviourhttp://en.wikipedia.org/wiki/Consumer_behaviourhttp://www.hul.co.in/aboutus/introductiontohul/http://www.hul.co.in/aboutus/introductiontohul/http://en.wikipedia.org/wiki/Hindustan_Unileverhttp://en.wikipedia.org/wiki/Hindustan_Unileverhttp://en.wikipedia.org/wiki/Consumer_behaviourhttp://en.wikipedia.org/wiki/Consumer_behaviour


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Documents

Anuja Kumar PROJECT