RESEARCH REPORT

On
“A STUDY ON CONSUMER BUYING BEHAVIOUR
TOWARDS HINDUSTAN UNILEVER LTD.
PRODUCTS IN LUCKNOW CITY.”

Towards partial fulfillment of Master of Business

Administration (MBA)
School of Management, BabuBanarasi Das University, Lucknow

SUBMITTED BY
SHREYA
Roll No.1210672248
MBA IVTH SEMESTER

Session 2022-2023

School of Management
BabuBanarasi Das University
Sector I, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P.) India.
 DECLARATION

I declare that the thesis entitled “A Study on consumer buying behavior towards

Hindustan Unilever ltd. Products in Lucknow city. ” submitted by me for the

degree of Master of Business Administration (MBA) is the record of research

work carried out by me under the supervision of Ms. Fatima Aafreen, Faculty

Guide From Babu Banarasi Das University, Lucknow and this has not formed the

basis for the award of any degree, diploma, associate ship, fellowship, titles in this

or any other University or other institution of higher learning.

I further declare that the material obtained from other sources has been duly

acknowledged in the Research Report. I shall be solely responsible for any

plagiarism or other irregularities, if noticed in the Research Report.

DATE: (SHREYA)

PLACE: LUCKNOW Roll No. 1210672248

 ACKNOWLEDGEMENT

The present work is an effort to throw some light on “A Study on consumer

buying behavior towards Hindustan Unilever ltd. Products in Lucknow city”. I

give my regards and sincere thanks to Dean Prof. Dr. Sushil Pande for his earnest

coordination and valuable efforts.

With deep sense of gratitude I acknowledge the encouragement and guidance

received by my faculty guide Ms. Fatima Aafreen She constantly encouraged me

right from the inception to final preparation of my project. She has been a constant

source of knowledge, information, help and motivation for me through her depth

knowledge and experiences. The work would not have been possible to come to the

present shape without the able guidance, supervision and help to me by number of

people.

I convey my heart full affection to all those people who helped and supported me

during the course, for completion of my Project Report.

SHREYA
 PREFACE

Research Report is an important part of the Management studies. It bears

immense important in the field of Business Management. It offers the student to

explore the valuable treasure of experience and an exposure to real work culture

followed by the industries and thereby helping the students to bridge gap between

the theories explainedin the book and their practical implementations.

Research plays an important role in future building of an individual so that we can

understand the real world in which he has to work in future. The theories greatly

enhance our knowledge and provide opportunities to blend theoretical with the

practical knowledge where researcher gets familiar with certain aspect of research. I

feel proud to get myself to do research at topic “A Study on consumer buying

behavior towards Hindustan Unilever ltd. Products in Lucknow city”.

 EXECUTIVE SUMMARY

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

Goods Company, touching the lives of two out of three Indians with over 20

distinct categories in Home & Personal Care Products and Foods & Beverages.

The company‘s Turnover is Rs. 17,523 crores (for the financial year 2009 - 2010)

HUL is a subsidiary of Unilever, one of the world‘s leading suppliers of fast

moving consumer goods with strong local roots in more than 100 countries across

the globe with annual sales of about €40 billion in 2009 Unilever has about 52%

shareholding in HUL. Hindustan Unilever was recently rated among the top four

companies globally in the listof ―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.

The mission that inspires HUL's more than 15,000 employees, including over

1,400 managers, is to 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. It is a

mission HUL shares with its parent company, Unilever, which holds about 52 %

of the equity.
 TABLE OF CONTENT

Sr. Topic Page no.

Certificate i

Declaration ii

Acknowledgement iii

Preface iv

Executive summary v
1. Introduction 1

2. Company profile 18

3. Objectives of study 42

4. Research methodology 44

5. Data Analysis and interpretations 49

6. Findings 59

7. Suggestions 61

8. Limitations 63

9. Conclusions 65

Bibliography

Appendix

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 CHAPTER-1
INTRODUCTION

2|Page
 INTRODUCTION

Consumer behavior refers to the mental and emotional process and the observable

behavior of consumers during searching, purchasing and post consumption of a

productor service.

Consumer behavior involves study of how people buy, what they buy, when they

buy and why they buy. It blends the elements from psychology, sociology,

sociopsychology, anthropology and economics. It also tries to assess the influence

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

in general.

Buyer behavior has two aspects: the final purchase activity visible to any

observer and the detailed or short decision process that may involve the interplay

of a number of complex variables not visible to anyone.

What influences consumers to purchase products or services? The consumer

buying process is a complex matter as many internal and external factors have an

impact on the buying decisions of the consumer.

When purchasing a product there several processes, which consumers go through.

These will be discussed below.

Purchase decision

Through the evaluation process discussed above consumers will reach their final

purchase decision and they reach the final process of going through the

purchase action

e.g. The process of going to the shop to buy the product, which for some

consumers can be as just as rewarding as actually purchasing the product.

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Purchase of the product can either be through the store, the web, or over the

phone.

Post Purchase Behavior

Ever have doubts about the product after you purchased it? This simply is post

purchase behavior and research shows that it is a common trait amongst

purchasers of products. Manufacturers of products clearly want recent consumers

to feel proud of their purchase, it is therefore just as important for manufacturers

to advertise for the sake of their recent purchaser so consumers feel comfortable

that they own a product from a strong and reputable organization. This limits

post purchase behavior. i.e. You feel reassured thatyou own the latest advertised

product.

Factors influencing the behavior of buyers.

Consumer behavior is affected by many uncontrollable factors. Just think, what

influences you before you buy a product or service? Your friends, your

upbringing, your culture, the media, a role model or influences from certain

groups?

Culture is one factor that influences behavior. Simply culture is defined as our

attitudes and beliefs. But how are these attitudes and beliefs developed? As an

individual growing up, a child is influenced by their parents, brothers, sister and

other family member who may teach them what is wrong or right. They learn

about their religion and culture, which helps them develop these opinions, attitudes

and beliefs (AIO) . These factors will influence their purchase behavior however

other factors like groups of friends, or people they look up to may influence their

4|Page
choices of purchasing a particular product or service. Reference groups are

particular groups of people some people may look up towards to that have an

impact on consumer behavior. So they can be simply a band like the Spice Girls

or your immediate family members. Opinion leaders are those people that you

look up to because your respect their views and judgments and these views

may influence consumer decisions. So it maybe a friend who works with the IT

trade who may influence your decision on what computer to buy. The economical

environment also has an impact on consumer behavior; do consumers have a

secure job and a regular income to spend on goods? Marketing and advertising

obviously influence consumers in trying to evoke them to purchase a particular

product or service.

Peoples social status will also impact their behavior. What is their role within

society? Are they Actors? Doctors? Office worker? and mothers and fathers also?

Clearly being parents affects your buying habits depending on the age of the

children, the type of job may mean you need to purchase formal clothes, the

income which is earned has an impact. The lifePerformence of someone who

earns £250000 would clearly be different from someone who earns £25000. Also

characters have an influence on buying decision. Whether the person is extrovert

(out going and spends on entertainment) or introvert (keeps to themselves and

purchases via online or mail order) again has an impact on the types of purchases

made .

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Maslow‟s Hierarchy of Needs

Abraham Maslow hierarchy of needs theory sets out to explain what motivated

individuals in life to achieve. He set out his answer in a form of a hierarchy. He

suggests individuals aim to meet basic psychological needs of hunger and thirst.

When this has been met they then move up to the next stage of the hierarchy,

safety needs, where the priority lay with job security and the knowing that an

income will be available to them regularly. Social needs come in the next level of

the hierarchy, the need to belong or be loved is a natural human desire and

people do strive for this belonging. Esteem need is the need for status and

recognition within society, status sometimes drives people, the need to have a

good job title and be recognized or the need to wear branded clothes as a symbol

of status.

But how does this concept help an organization trying to market a product or

service? Well as we have established earlier within this website, marketing is

about meeting needs and providing benefits, Maslow‘s concept suggests that needs

change as we go along our path of striving for self-actualization. Supermarket

firms develop value brands to meet the psychological needs of hunger and thirst.

Harrods develops products and services for those who want have met their esteem

needs. So Maslow‘s concept is useful for marketers as it can help them

understand and develop consumer needs and wants.

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THEORETICAL BACKGROUND OF STUDY

Market

The term market may be considered as a convenient meeting place where buyers

and sellers gather together for the exchange of goods and services. Market means

a group of people having unmet wants, purchasing power to make their demand

effective and the will to spend their income to fulfill those wants. Today a market

is equated with the total demand.

The American marketing association defines a market, ‗as the aggregate demand

of potential buyers for a product or service‘.

Under keen competition, a marketer wants to create or capture and retain the

market i.e. customer demand through an appropriate marketing mix offered to a

target market. The market offering i.e. supply must meet customer demand, which

are unmet needs and desires.

Marketing

Marketing is a comprehensive term and it includes all resources and set of

activities necessary to direct and facilitate the flow of goods and services form the

producer to the consumer through the process of distribution. Businessmen

regards marketing as a management function to plan promote and deliver products

to the clients or customers. Human efforts, finance and management constitute the

primary resources in marketing.

We have twin activities, which are most significant in marketing:

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1. Matching the product with demand i.e. customer needs and desires or

the targetmarket.

2. The transfer of ownership and possession at every stage in the flow of goods

from theprimary producer to the ultimate consumer.

The American marketing association defines marketing as the process of planning

and executing the conception, pricing, promotion and distribution of ideas, goods

and services to create exchanges that satisfy individual and organizational

objectives.

Marketing Management

Marketing management represents an important functional area of business

management efforts for the flow of goods and services from the producer to the

consumers. It looks after the marketing system of the enterprise. It has to plan and

develop the product on the basis of known customer demand.

Marketing management may be defined as, a process of management of marketing

programs for accomplishing organizational goals and objectives. Marketing

management has to build up appropriate marketing plan or marketing mix to

fulfill the set goals of the business. It has to formulate sound marketing policies

and programs. It looks after their implementation and control. It has to implement

marketing strategies, programs and campaigns. It must evaluate the effectiveness

of each part of marketing mix and introduce necessary modifications to remove

discrepancies in the actual execution of plans, policies, strategies, procedures and

8|Page
programs.

Marketing Mix

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

objectives in the target market.

There are four elements or variables that make a marketing mix, they are:

1. Decisions on product or service.

2. Decisions on promotion

3. Decisions on price

4. Decisions on distribution.

The four ingredients are closely interrelated. Under the systems approach the

decision in one area affects action in the other. Marketing mix decisions constitute

a large part of marketing management.

According to Philip Kotler the term marketing mix is, ‗the set of controllable

variables that the firm can use to influence the buyers response‘. In the simplest

manner, the basic marketing mix is the blending of four inputs or sub mixes,

which Product mix decision refers to decisions on product variety, quality,

design, features,brand image, packaging, sizes, services, warranties and returns.

Price mix decision refers to decisions on the product list price, discounts,

allowances, andpayment period and credit terms available.

Place mix decision refers to decisions on the channels, coverage, assortments,

locations,inventory and transport of the market offering.

form the core of the marketing system.

9|Page
 Promotion mix decisions refer to decisions on the products advertising, sales

promotion,sales force, public relations and direct marketing.

Together they form the four P‘s of marketing.

Marketing Planning

A marketing plan lies down in writing the marketing objectives, programs and

policies to be adopted to achieve the set marketing objectives. Even before an

integrated marketing plan is prepared the company shall prepare functional plan

for each component of marketing mix. To have a sound marketing plan, every

operation is to be examined and the problems are to be identified. The overall

marketing plan should be linked to the distribution channel of the company to

have effective marketing operations.

Marketing Research

Marketing research is the systematic gathering, recording and analyzing of the

data about problems connected to the marketing of goods and services i.e.

problems relating to product, price, promotion and distribution of the 4p‘s of the

marketing mix.

Marketing research is concerned with all those factors, which have a direct impact

upon the marketing of products and services. Marketing research has grown along

with the expanded role of marketing as the focus for the business decision-

making.

Need of marketing research

Marketing research is conducted for different purposes. They are:

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 1. To estimate the potential market for a new product.

2. To know the reactions of consumers to a product already existing in the market.

3. To find out the general marketing condition and tendencies.

4. To know the types of consumer buying and their buying motives.

5. To know the reactions of failure of a product already in the market.

6. To assess the strength and weakness of competitors.

Consumer

A person who purchase or has the capacity to purchase the goods of service often

for saleby the marketing firm in order to satisfy personal need and desires.

Perception

Perception is the sensing of stimuli external to the individual organism the act or

processof comprehending the world in which the individual exists.

Perception has been defined by social psychologists as the ―Complex process‖

by which people select organize and interpret sensory stimulation in to a

meaningful and coherent picture of the work.

Attitude

Social psychologist defined attitude as an emotionalized predisposition to respond

positively or negatively to an object. Predisposition can be thought of as

categories of meaning stored in the memory of a person and are based on previous

experience. Predisposing the person to have in an specific manner towards a

certain objects in the environment.

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Brand

A brand is a name, term, symbol, design or a combination of them which is

intended to identify the goods or services of one seller or group of sellers and to

differentiate them from those of competitors.

Consumer Behavior

The term consumer behavior can be defined, as, ‗the behavior that the consumer

display in searching for, purchasing, using and evaluating products, services and

ideas, which they expect, will satisfy their needs‘. The study of consumer

behavior enables marketers to understand and predict consumer behavior in the

market place; it also promotes understanding of the role that consumption plays in

the lives of individuals.

Consumer behavior refers to all psychological social and physical behavior of

potential consumers as they become aware of, evaluate, purchase and

consume and tell others about products and services. It is the pattern of response

of buyers to marketing offer of a firm. It refers to the process as how consumers

make their purchase decisions. It is concerned with what, why, how much, when

and from whom buyers make their purchases of goods and services.

Model of consumer behavior

The starting point of understanding consumer behavior is the stimulus-response

model. Marketing and environmental stimuli enter the buyer‘s consciousness. The

buyer‘s characteristics and decision process lead to certain purchase decisions.

The marketer‘s task is to understand what happens in the buyer‘s consciousness

between the arrival of outside stimuli and the buyers purchase decisions.

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 Major Factors Influencing Consumer Behavior

Consumers buying behavior is influenced by cultural, social, personal and

psychological factors.

1. Cultural Factors

Cultural factors exert the broadest and deepest influence on consumer

behavior. The roles played by the buyers culture, subculture and social class

are particularly important.

• Culture

Culture refers to that complex whole which includes in it knowledge,

beliefs, art or anything man acquires as a member of society.

• Subculture

Each culture consists of smaller subcultures that provide more specific

identification and socialization for their members. Sub cultures include

nationalities, religions,racial groups and geographic regions.

• Social Class

Virtually all-human societies exhibit social stratification. Stratification

sometimes takes the form of a caste system where the members of different

castes are reared for certain roles and cannot change their caste membership

more frequently; stratification takes the form of social class.

1. Social Factors

o Reference Groups

A persons reference groups consists of all the groups that have a direct or

indirectinfluence on the person‘s attitudes or behavior.

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o Family

The family is the most important consumer buying organization in the society and it

constitutes the most influential primary reference group.

o Roles and statuses

A person participates in many groups, family, clubs, organizations etc. The

person‘s position in each group can be defined in terms of role and status. A

role consists of the activities that a person is expected to perform. Each role

carries a status.

2. Personal Factors

o Age and stage in the life cycle

People buy different goods and services over their lifetime. Taste in clothes,

furnitureand recreation is all age related.

Consumption is shaped by the family life cycle. Marketers often choose

life-cyclegroups as their target market.

o Occupation and economic circumstances

Occupation also influences a person‘s consumption pattern.

Product choice is greatly affected by economic circumstances; spendable

income, savings and assets, debts, borrowing power and attitude toward

spending versussaving.

o Lifestyle

People from the same subculture, social class, and occupation may lead quite

different lifestyles. A lifestyle is the person‘s pattern of living in the world

expressed in activities, interest‘s ands opinions. Lifestyle portrays the world

14 | P a g e
 person interacting with his or her environment.

o Personality and self concept

Each person has a distinct personality that influences buying behavior. It is

that distinguishing psychological characteristics that lead to relatively

consistent and enduring responses to environment. Related to personality is

self-concept or self image. Marketers try to develop brand images that match

target markets self image.

Psychological Factors

o Motivation

A person has many needs at a given time. A need becomes a motive

when it is aroused to a sufficient level of intensity. A motive is a need that is

sufficiently pressing to drive the person to act.

o Perception

Perception is the process by which an individual selects, organizes and

interprets information inputs to create a meaningful picture of the world. How

a, motivated person actually acts is influenced by his or her perceptions of the

situation.

o Learning

When people act they learn. Learning involves changes in an individual‘s

behavior arising from experience. Learning theory teaches marketers that they

can build up demand for a product by associating it with strong drives, using

motivating cues and positive reinforcement.

o Beliefs and attitudes

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 Through doing and learning, people acquire beliefs and attitudes. These in

turn influence buying behavior. A belief is a descriptive thought that a person

holds about something. The beliefs make up product and brand images and

people act on these images. An attitude is a person enduring favorable or

unfavorable evaluations, emotion feelings and action tendencies toward some

object or idea. Thus a company would be well advised to fit product into

existing attitudes rather than try and change people‘s attitudes.

After the globalization of India economy in 1991 the telecommunication sector

remained one of the most happening sectors in India. The recent years

witnesses rapid and dramatic changes in the field of telecommunications. In the

last few years more and more companies both foreign, domestic, come into

cellular service, service market and offers large number of services to the people.

A consumer may be referred to anyone engaged in evaluating, acquiring, using

or disposing of services which he expects will satisfy his wants. If any producer

makes out the marketing programmer ignoring the consumer preferences, he

cannot possibly achieve his ultimate objectives. A manufacturer must plan his

production and distribution to suit the consumer‘s convenience rather than his

own. Therefore a marketer must know more and more about the consumers, so

that the products can be produced in such a fashion to give satisfaction to them.

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 CHAPTER-2

COMPANY PROFILE

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 COMPANY PROFILE

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.

Unilever was a result of the merger between the Dutch margarine company,

Margarine Unie, and the British soap-maker, Lever Brothers, way back in 1930.

For 70 years, Unilever was the undisputed market leader but now faces tough

competition from Proctor& Gamble and Colgate-Palmolive.

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

strengthen its distribution in the rural areas and to empower the local women,

HUL launched a Project Shakti in 2000 in a district in Andhra Pradesh. The idea

behind this project was to create women entrepreneurs and provide them

with micro-credit and training in enterprise management, which would enable

them to create self- help groups and become direct-to-home distributors of HUL

products. Today Project Shakti is present across 80,000 villages in 15 states and is

helping many underprivileged women earn their livelihood.

As the per-capita income of India is increasing along with the Indian population.

So, the future for the FMCG Companies is bright. To analysis the past

performance & the future demand of HUL, FMCG products we have considered

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 following points:

• We have a listed the different FMCG product lines of HUL.

• We have done competitor‘s analysis in which the market share of top FMCG

companies are analysed & the market share of HUL‘S different categories

product are analysed with comparison to its competitors.

• Then performance analysis is made by taking 10 year financial data from 1998-

2007. The profit & sales growth is analysed We have done SWOT analysis to

know the threat & opportunities of HUL in present market.

• The future opportunities for FMCG products are taken into consideration by

analyzing the increased per capita income & increased disposable income to

forecast the future demand of HUL.

– Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods
Company, touching the lives of two out of three Indians with over 20 distinct

categories in Home & Personal Care Products and Foods & Beverages. The

company‘s Turnover is Rs. 20, 239 crores (for the 15 month period – January 1,

2008 to March 31, 2009).

– Hindustan unilever limited is a subsidiary of Unilever, one of the world‘s leading

suppliers of fast moving consumer goods with strong local roots in more than 100

countries across the globe with annual sales of €40.5 billion in 2008. Unilever has

about 52% 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

19 | P a g e
 magazine and the RBL Group. The company was ranked number one in the Asia-

Pacific region and in India.

– 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 everyday needs for

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

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

Unilever, which holds about 52 % of the equity.

Heritage

HUL‘s heritage dates back to 1888, when the first Unilever product, Sunlight, was

introduced in India. Local manufacturing began in the 1930s with the

establishment of subsidiary companies. They merged in 1956 to form Hindustan

Lever Limited (The company was renamed Hindustan Unilever Limited on June

25, 2007). The company created history when it offered equity to Indian

shareholders, becoming the first foreign. subsidiary company to do so. Today, the

company has more than three lakh resident shareholders.

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

Lovely, Sunsilk, Clinic, Close-up, Pepsodent, Lakme, Brooke Bond, Kissan,

Knorr, Annapurna, Kwality-Walls - are household names across the country and

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

staples, ice cream and culinary products. They are manufactured in over 35

factories, several of them in backward areas of the country. The operations

involve over 2,000 suppliers and associates. HUL's distribution network covers

6.3 million retail outlets including direct reach to over 1 million.

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HUL has traditionally been a company, which incorporates latest technology in all

its operations. The Hindustan Lever Research Centre (now Hindustan Unilever

Research Centre) was set up in 1958

Doing well by doing good

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

community. HUL focuses on hygiene, nutrition, enhancement of livelihoods,

reduction of greenhouse gases and water footprint.It is also involved in education

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

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

calamities / adversities and contributes through various welfare measures, most

recent being the relief and rehabilitation of the people affected by the Tsunami

disaster, in India. HUL‘s Project Shakti is a rural initiative that targets small

villages populated by less than 5000 individuals. Through Shakti, HUL is

creating micro-enterprise opportunities for

rural women, thereby improving their livelihood and the standard of living in rural

communities. Shakti also provides health and hygiene education through the

Shakti Vani programme.The program now covers 15 states in India and has over

45,000 women entrepreneurs in its fold, reaching out to 100,000 villages and

directly reaching to over three million rural consumers.

HUL also runs a rural health programme, Lifebuoy Swasthya Chetana. The

programme endeavours to induce adoption of hygienic practices among rural

Indians and aims to bring down the incidence of diarrhoea. It has already touched

120 million people in approximately 50, 676 villages across India.

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If Hindustan Unilever straddles the Indian corporate world, it is because of being

single- minded in identifying itself with Indian aspirations and needs in every

walk of life.

Type Public company BSE: 500696

Industry Fast Moving Consumer Goods FMCG)

Founded 1933

Headquarters Mumbai, India

Key people Harish Manwani (Chairman), Nitin Paranjpe (CEO

and Managing Director)

Products Home & Personal Care, Food & Beverages

Revenue 17,873.44 crore (US$3.97 billion) (2009-2010)

Net income 2,202.03 crore (US$488.85 million)

Employees Over 65,000 direct & indirect employees

Parent Unilever Plc (52%)

Website www.hul.co.in

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 History of HUL

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.

The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the

company had launched Red Label tea in the country. In 1912, Brooke Bond & Co.

India Limited was formed. Brooke Bond joined the Unilever fold in 1984 through

an international acquisition. The erstwhile Lipton's links with India were forged in

1898. Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited

was incorporated.

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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.

Since the very early years, HUL has vigorously responded to the stimulus of

economic growth. The growth process has been accompanied by judicious

diversification, always in line with Indian opinions and aspirations. The

liberalisation 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 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

24 | P a g e
products like Soaps, Detergents and Personal Products both for the domestic

market and exports to India.

In 1993, it acquired the Kissan business from the UB Group and the Dollops Ice-

cream business from Cadbury 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 Ice-cream Group families and in 1995 the Milk-food 100% Ice-

cream marketing and distribution rights too were acquired.

Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal

restructuring 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. The amalgamation was done to ensure

for the Group, benefits from scale economies both in domestic and export markets

and enable it to fund investments required for aggressively building new

categories.

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

25 | P a g e
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.

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 2000‘s.

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 In 2002, HUL made its foray into Ayurvedic health & beauty centre

category with the Ayush product range and Ayush Therapy Centr es. Hindustan

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

followed by the launch of

‗Pure-it‘ 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 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

26 | P a g e
 Vision of Hindustan unilever limited

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.

A clear direction

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.

• We will inspire people to take small everyday actions that can add up to a big

differencefor the world.

• We will develop new ways of doing business that will allow us to double the

size of our company while reducing our environmental impact. We've always

believed in the power of our brands to improve the quality of people‘s lives and in

doing the right thing. As our business grows, so do our responsibilities. We

recognise that global challenges such as climate change concern us all.

Considering the wider impact of our actions is embedded in our values and is a

fundamental part of who we are.

Purpose & principles of hul

Our corporate purpose states that to succeed requires "the highest standards of

corporate behaviour towards everyone we work with, the communities we touch,

27 | P a g e
and the environment on which we have an impact."

Always working with integrity

Conducting our operations with integrity and with respect for the many people,

organisations and environments our business touches has always been at the heart

of our corporate responsibility.

Positive impact

We aim to make a positive impact in many ways: through our brands, our

commercial operations and relationships, through voluntary contributions, and

through the various other ways in which we engage with society.

Continuous commitment

We're also committed to continuously improving the way we manage our

environmental impacts and are working towards our longer-term goal of

developing a sustainable business.

Setting out our aspirations

Our corporate purpose sets out our aspirations in running our business. It's

underpinned by our code of business Principles which describes the operational

standards that everyone at Unilever follows, wherever they are in the world. The

code also supports our approach to governance and corporate responsibility.

Working with others

We want to work with suppliers who have values similar to our own and

work to the same standards we do. Our Business partner code, aligned to our own

Code of business principles, comprises ten principles covering business integrity

and responsibilities relating to employees, consumers and the environment.

28 | P a g e
 MARKETING STRATEGY OF HINDUSTAN UNILEVER

LIMITED

1) HUL‟S NEW GROWTH STRATEGY:

After having fought a bitter price battle for market share with its rivals, Hindustan

Unilever Ltd (HUL), Indian subsidiary of the Anglo- Dutch consumer goods

company Unilever Plc, is now working on a new growth strategy for its laundry

business.

―Price cut or hike is not a long-term growth strategy. Pricing, in fact, is now

passe,‖ insists Sudhanshu Vats, category head, home care. ―Our strategy for

growth, now is focused on product innovation, new consumer and retail trends

and aggressive marketing and promotions,‖ he said.

This comes even as Unilever is scouting for a potential buyer for its laundry

business in the US.

HUL says it is quite upbeat about the segment and says the laundry segment is

one of its―key growth areas. ―We have done key innovations across the product

portfolio and it is working for us,‖ says Vats. ―We successfully migrated from

Rin Supreme to Surf Excel and Wheel Smart Srimati—which was rolled out in

2006—is also on the right track.‖ HUL‘s market share in the laundry segment

grew to around 37.8% in the quarter ended June from 35.5% in the same

period last year, according the market research firm.

29 | P a g e
2) SUSTAINABILITY STRATEGY

We have a long-standing set of values and principles that guides our behaviour.

These values underpin our approach to sustainability. We have always been a

business driven by a strong set of values. Today those values are as important as

ever. We now know that the well-being of society and the environment is critical

to our ability to grow.

Our Sustainability strategy

Unilever‘s vision is to double the size of its business while reducing the overall

impact on environment. This new vision recognises that the world is changing,

populations are growing and the rise in incomes is fuelling a growth in the

demand for consumer products. Products like ours rely on an increasingly

constrained set of natural resources, whether it is fuel, water, or other raw

materials.

In Hindustan Unilever Limited (HUL), the principle of Corporate Responsibility

(CR) is an integral part of our commitment to all our stakeholders – consumers,

customers, employees, the environment and the society that we operate in.

Today, India is battling multiple issues like water scarcity, poverty, and problems

arising out of low awareness of health, hygiene, and nutrition. If these issues are

not addressed soon, they will create insurmountable barriers to business growth.

We believe that helping society prosper and ensuring a sustainable future for the

planet goes hand in hand with our goal of ensuring growth that is competitive,

profitable, and sustainable for our organisation.

30 | P a g e
 For example, if one household uses Surf Excel detergent, it can conserve two

buckets of water per wash. A million Indian households using Surf Excel can save

enough water for meeting the basic hygiene needs of many Indians. Thus, small

individual actions multiplied with our large consumer base will make a big

difference in combating the issues society faces.

We will further demonstrate that successful business strategies are driven by

responsiblebusiness practices. The key to this approach is developing a CR

framework whichintegrates the social, economic, and environmental agenda with

our business priorities –growing markets, maintaining the competitive edge,

enjoying goodwill in thecommunities we operate in, and building trust and an

exceptional reputation. Hence, inthe future, the three cornerstones for CR

integration with business at HUL will be:

Growing markets responsibly:

We will address issues related to hygiene and nutrition through product innovations

and awareness. Gathering information about the concerns expressed by consumers,

communities, and stakeholders can help us identify opportunities for innovation at the

category, brand, and marketing plan level. We have a very strong and trusted position

in India and we can leverage this to our competitive advantage. Ensuring sustainable

practices in our operations:

31 | P a g e
To secure a thriving future, we need to establish sustainable sources for raw

materials. Being a company that is heavily dependent on water, agriculture, fuels

and petrochemicals, we must plan now for a future in which water could be

scarce, agriculture could be under pressure, and fuels will be expensive. Our

consumers add up to two-thirds of the Indian population, hence addressing

sustainability issues is a high priority.

Building a good reputation through responsible leadership:

CR is one of the key components of reputation and trust. A good reputation can be

a major competitive advantage and can build employer brand and consumer

loyalty.

3) Engaging with our stakeholders

Listening to others and learning from our stakeholders informs our decision-

making, strengthens our relationships and helps us succeed as a business.

Stakeholder engagement for identifying issues that are material to us:

We appointed Sustainability International to conduct stakeholder engagement on

our behalf. They analysed and assimilated the expectations of stakeholders

regarding issues that matter to them. These expectations were similar to the areas

identified by us, where HUL's contribution could create a significant impact.

Scoping the areas for intervention

While the issues are many, it is necessary to address them in a systematic manner

to make a real difference. Instead of spreading thin across all issues, we have

chosen towork on five areas to ensure a deep impact.

32 | P a g e
These areas have been arrived at using the output from our stakeholder

engagement process and areas which we are poised to address through our

business.

4) Governance

We aim to have strong governance structures in place to manage our social and

environmental responsibilities carefully and thoughtfully.

Corporate Responsibility at HUL is led by the CEO and the Management

Committee (MC) of the company. The MC governs the sustainability strategy

33 | P a g e
 with a view of key strategic approaches and seeks reports on impacts and efforts

against clear targets.

Each of the nine cells (in the daigram shown in Sustainability strategy section) is

owned by an MC member. For the execution of the strategy there is a team of 12

Sustainability Governing Council (SGC) members based on their respective

functions.

Sustainability Governing Council

The Sustainability Governing Council is responsible for:

• Recommending sustainability priorities for approval by the MC and monitoring

itsprogress

• Recommending HUL's positions on critical issues for approval by MC

• Receiving stakeholder feedback

The role of the SGC is formalised, with a clear mandate and terms of reference

outlining its mission, purpose, membership, meeting schedule, and reporting

systems.

34 | P a g e
5) COMPETATIVE STRATEGY

As Competition Heats Up, India‘s Top Consumer-Products Company Woos

Affluent Shoppers With Global Brands Like Dove, While Cooking Up Its Foods

The middle-aged Briton strolling the aisles and checking out the products doesn‘t

attract much notice from other shoppers in Mumbai‘s Hypercity, the India

hypermarket chain. That‘s how Douglas Baillie likes it. Baillie, the managing

director of Hindustan Unilever, India‘s premier consumer-products company,

wants to see how his products are stocked, what consumers are buying, and how

shoppers are reacting to competitive brands. It‘s primary market research at its

most elemental, and it‘s best done incognito.

Hindustan Unilever has traditionally relied on small traders and mom-and-pop

corner stores to retail its products. But India‘s recent retail boom has created large

stores and malls, so the company wants to make sure it‘s in with the new

marketing crowd. Hence Baillie‘s Hypercity visits, and the calls he makes on the

headquarters of the big retail chains.

This is quite a change for Hindustan Unilever, whose executives used to have

emissaries make obeisance at Lever house in downtown Mumbai. ―I can‘t

imagine any head from Lever House ever visiting other company offices like

this,‖ says an amazed Damodar Mall, chief executive of innovation and incubation

at Pantaloon Retail, India‘s largest retailer and a former manager at Hindustan

Unilever.

35 | P a g e
 6) OTHER STRATEGY

• Grow ahead of market by leading market development activites.

• leverage positive impact of growing Indian economy on consumer spending.

• Grow a profitable foods and top end business.

• Grow the bottom-line ahead of top line.

• Strong commitment to sustainable development.

SWOT ANALYSIS

STRENGTHS

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

Consumer Goods company, touching the lives of two out of three Indians

with over 20 distinct categories in Home & Personal Care Products and

Foods & Beverages..

• Due to its long presence in India – has deep penetration – 20 consumer product

category, over 15,000 employees, including over 1,300 managers, is to "add

vitality to life."

• The company derives 44.3% of its revenues from soaps and detergents,

26.6% from personal care products, 10.5% from beverages, and the rest

from foods, ice creams, exports, and other products.

• Low cost of production due to economic of scale. That means higher and /

or more competitioners. Better market penetration.

• HUL is also one of the country's largest exporters; it has been

recognised as a Golden Super Star Trading House by the Government of

36 | P a g e
 India.

Weakness

• Strong competitors and availability of substitute products.

• Low export levels

• High price of some products

• High advertising cost.

Opportunities

• Increasing per capita national income resulting in higher disposable income.

• Growing middle class and growing urban population.

• Increasing gifts cultures.

• Increasing departmental stores concept – impulse @ at cash counters.

• Globalization.

Threats

• HUL's tea business has declined marginally, reason is that, cost pressure

is likelydue to rising crude and freight costs.

• Tax and regulatory structure.

• Mimic of brands.

• Removal of import restrictions resulting in replacing of domestic brands.

• Temporary slowdown in economy can have an impact on FMCG in Industry.

37 | P a g e
 PEST ANALYSIS

P:

since the budget range is decontrolled, no political effects are envisaged.

E:

• increasing per capita income resulting in higher Disposable income

• Growing middle class/urban population – increase in Demand

• Low cost of production – better penetration

S:

• Per capita consumption expected to increase – fashion

• Increasing gifts culture – increase in demand

T:

• Will have to reinforce technology to international levels Once India is

a ―fully free‖ economy.

MAJOR INDIAN COSMETIC COMPANIES:-

In India, there is a complete range of cosmetic companies.it includes regional companies,

national and MNCs. Hindustan Unilever leads the companies which is followed by Godrej

consumer care, Procter & Gamble, Emami, Dabur and Calvin Care. A broad list of these

companies has been given below :-

38 | P a g e
 1. HUL

2. GODREJ CONSUMER CARE.

3. EMAMI

4. ITC.

5. DABUR.

6. PROCTER & GAMBLE.

7. CALVIN CARE.

8. HANKEL INDIA LTD.

9. MARICO.

10. RECKITT BENCKISER (INDIA) LTD.

11. COLGATE PALMOLIVE PVT. LTD.

12. CHOLYIL PVT.LTD.

13. J.K.HELEN COUTIES LTD.

14. J L MORISON INDIA LTD.

15. MODI RAVLON LTD.

• HUL (Hindustan Unilever Ltd.)

CEO ;- Nitin Pranjape.

Hindustan Unilever Ltd. Has takes first position in the cosmetic products

39 | P a g e
 selling in India. Every one out of two peoples uses the products of HUL . There

is a wide rangeof varity of products of HUL in India.

Product Range (Cosmetic):-

Lux, Lifeboy, Hamam,Liril, Breeze, Dove, Pears, Rexona Fair&Lovely, Ponds,

Vasaline, Avience , Sunsilk,Clinic ,Axe, Ayush ,Lakme Surf exel,Rin,Sunlight,

Wheel, Close up,Pesodent

COMPETITION AMONG MAJOR COMPANIES:-

There is a huge competition among the companies working with the personal care

segment of FMCG industry. HUL is leading the market in many segments from

last couple of decade. But right now it is facing a good competition from the other

existing companies like P&G, Marico, Godrej Consumer Care Ltd., Dabur etc. A

full data of thesecompanies and there market share is given in the following above

table.

TABLE 1 :- MARKET SHARE OF DIFFERENT FMCG COMPANIES IN

THESESECTORS.

COMPANIE SHAMPO SOA DETERGEN SKINCAR TOOTHPAST

S O P T E E
(%) (%) (%) (%) (%)
HUL 44.7 47.5 36.8 47.2 28

40 | P a g e
 P&G 24.3 - 14.2 6.4 -

DABUR 6.1 - - 5.0 10

ITC 6.0 10.2 9.0 6.0 -
GCPL 5.5 13.3 - 2.1 -
EMAMI - - - 15.4 -

CAVIN 5.2 5 - 12.5 -

KARE
MARICO 3.9 4.7 - 9.9 -
COLGATE - 6 - - 50.1
OTHERS 4.3 8.2 45 11.9

The country‘s largest maker of home and personal care products, Hindustan

Unilever Ltd (HUL), has lost market share by value over the five quarters ended 31

March2009, the erosion cutting across key categories such as soaps, shampoos,

toothpastes and skin creams, even as the broader market expanded significantly

HUL lost considerable market share in soaps, detergents and shampoos that

contribute three-quarters of its sales, securities house DSP Merrill Lynch Ltd said in

a recent report, citing data from market research firm ACNielsen.

Market share for soaps, detergents and shampoos declined to 47.5%, 36.8%, and

44.7% in the three months ended March, from 53.4%, 38.9% and 46.3%,

respectively, in the January-March quarter of 2008. In some categories such as tea

and coffee, HUL expanded its market share marginally. In tea, for instance, its share

rose to 23%, from 22.6%.

41 | P a g e
In soaps, the company‘s market share dropped in each of the five quarters even as

the overall soap market, according to ACNielsen, grew 18% in the year to Rs7,967

crore. HUL‘s soap portfolio includes popular brands such as Dove, Lux, Hamam

and Breeze.

―Discount brands such as Godrej No.1 and Santoor have been gaining share from

HUL‘s Breeze and Lux,‖ said India Infoline‘s Nagwekar.

Godrej No.1 is a product of Godrej Consumer Products Ltd (GCPL) and Santoor is

made by Wipro Consumer Care and Lighting, a unit of Wipro Ltd.

HUL‘s market share in the laundry segment grew to around 37.8% in the

quarter ended June from 35.5% in the same period last year, according the market

research firm ACNielsen. However, this time, the increase was not at the expense of

price war with its multinational rival Procter & Gamble Co. P&G also gained 0.5

percentage points, up to a 7.6% share. Nirma Ltd, the Ahmedabad-based

manufacturer, however, saw its market share dip by 1.7% percentage points to

13.5%. Wheel, a value brand that, according to Vats contributes around 50% of

HUL‘s laundry segment revenues, increased its market share by 2 percentage points

in the same period, with a total share of about 18%.―Laundry has been an attractive

segment in the past and is likely to keep growing in the near future. The recent price

war between companies led to erosion in their profitability but now, the industry is

stabilizing,‖ says Unmesh Sharma, an analyst at Macquarie Securities here.

According to Vats, the laundry business is witnessing a surge in demand from cities

and HUL is focusing on Tier I and II cities to tap that demand.

42 | P a g e
CHAPTER:3

OBJECTIVES
OF THE STUDY

43 | P a g e
 OBJECTIVES OF THE STUDY

a. The main objective of this project is to find, what are the steps Hindustan

Unilever Ltd. is adapting to be market leader and to differentiate itself from its

competitors.

b. What is the steps company is utilizing to find current trend in the market.

c. To study various brands of HUL

d. To study the competitive brands in the market of ,home care products,.food

brands,personal care products.

e. To find the market share of the HUL brands and its competitive brands.

f. To determine the key areas of strength and weakness for HUL brands To
develop promotion plan for brand communication of the HUL.

g. To study various marketing strategies of huL.

44 | P a g e
 CHAPTER : 4

RESEARCH

METHODOLOGY

45 | P a g e
 RESEARCH METHODOLOGY

Research is a common parlance which refers to search for knowledge. It is a

procedure of logical and systematic application of the fundamentals of science to

the general and overall questions of a study and scientific technique, which

provide precise tools, specific procedures, and technical rather philosophical

means for getting and ordering the data prior to their logical analysis and

manipulating different type of research designs is available depending upon the

nature of research project, availability of manpower and circumstances.

RESEARCH DESIGN

A research design is the arrangement of conditions for collection and analysis of

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

economy in procedure. In fact, the research design is the conceptual structure

within which research is conducted. This research was descriptive in nature

DESCRIPTIVE RESEARCH:

The research undertaken was a descriptive research as it was concerned with

specific predictions, with narration of facts and characteristics concerning a study

on customer satisfaction of Hindustan Unilever products in Lucknow city.

46 | P a g e
a. Methods of Data Collection. There are several methods of collecting primary
data, particularly in surveys and descriptive researches. In descriptive research,

we obtain primary data either through observation or through direct

communication with respondents in one form or another or through personal

interviews. I have used questionnaires (Primary) and Internet source (Secondary)

for data Collection .

b. DATA SOURCE

There were two types of data sources used in this research. These were

1. PRIMARY DATA

Primary data is the data collected for the first time from the source and never have

been used earlier. The data can be collected through interviews, observations and

questionnaires.

2. SECONDARY DATA

Secondary data is the data collected from already been use or published

information like journals, diaries, books, etc .In this research project, secondary

source used were various journals, and website of various online journals.

c. SAMPLE DESIGN

A sample design is made up of two elements. Sampling method. Sampling

method refers to the rules and procedures by which some elements of the

47 | P a g e
 population are included in the sample. Some common sampling methods are

simple random sampling, stratified sampling, and cluster sampling.

I have used simple random sampling for study.

d. UNIVERSE OF STUDY: Universe of the study means all the Customers

of Hindustan Unilever products in Lucknow city.

Sample Area: Lucknow

e. SAMPLE TYPE: I have used Random sample for study.

f. SAMPLE SIZE: A sample of minimum respondents will be selected from

customers of Hindustan Unilever products in Lucknow city. . An effort was

made to select respondents evenly. The survey was carried out on 100

respondents.

g. SAMPLE UNIT: customers of Hindustan Unilever products in Lucknow city.

h. STATISTICAL TOOLS TO BE USED: A structured questionnaires is used to

collect the data and data will be analyzed with the help of percentage table,

respective graph, bar graph and pie charts

i. TOOLS OF PRESENTATION:

It means what all tools are used to present the data in a meaningful way so that it

becomes easily understandable. In this research tables and graphs were used for

presenting the data.

48 | P a g e
 CHAPTER : 5

DATA ANALYSIS AND

INTERPRETATION

49 | P a g e
 DATA ANALYSIS & INTERPRETATION

There is a number of data analysis has been done on the basis of questionnaire and

different basis. Theses basis of questionnaire has been made on different preference

and buying habit of consumers. The data analysis is given as follows:-

TABLE 1 :- SHOPPING HABIT OF CONSUMERS FOR

PLACE

SHOPPING HABITS OF CONSUMERS

MALLS
SUPER MARKET
TRADITIONAL SHOPS
E-SHOPPING

Interpretation :-

The above data shows the different habits of consumers during they are

on a way to purchase the products. There was a time when consumers gone to only

one or two stores available in a area. They purchase only those things which the

retailer gives them. At the time, the consumers has very limited choice due to

unavailability of more retail stores in a area. But now a days there is a bunch of

50 | P a g e
availability of super markets, malls, and different ways to shopping. At the present

time, 48% of people goes to a super market, 25% goes to same old traditional stores,

these persons are either from backward area or some semi urban areas. 21% peoples

goes to malls for shopping, these are the peoples of metro cities or good developed

city like Lucknow, Ahemdabad, Pune etc. Remaining 6% peoples deals with e-

shopping.

TABLE 2 :- DURATION BETWEEN SHOPPING

DURATION BETWEEN SHOPPING

DURING WEEKENDS
15-20 DAYS
MONTHLY
RARELY

Interpretation :-

The above table shows the shopping durations of people for purchase of cosmetic

products. Basically shopping duration depends upon the size and weight of the

product .But generally, majority of people purchase these goods on the duration

of 15 to 20 days. At the present time 49% of the people goes to purchase the

51 | P a g e
products at duration of 15 to 20 days. At the same time 35% of the consumers goes

to purchase the cosmetic products at a duration of a month, these people contains the

common general people. 11% people goes to purchase a cosmetic product at a

duration of a week. These are very beauty conscious and expensive peoples. At last

remaining 5% peoples rarely purchase these cosmetic products.

TABLE 3: BRAND CONCIOUSNESS OF PEOPLE

BRAND CONCIOUSNESS OF PEOPLE

BRAND CONCIOUSNESS

FEW BRAND
CONCIOUSNESS
NOT BRAND
CONCIOUSNESS

Interpretation :-

The above table shows the brand consciousness of the common

consumers. On the basis of above table, at the present time there are 78% people of

India are brand conscious 14% consumers are brand conscious for only few brands

and remaining 8% people who belongs to backward areas are not brand conscious.

52 | P a g e
 TABLE4:-PREFERECE OF DIFFERENT BRANDS
(COUNTRY WISE

PREFERENCES OF DIFFERENT BRANDS

NATIONAL
INTERNATIONAL
LOCAL

Interpretation :-

The above data table shows the preference of consumers towards

different brands of cosmetic products on the basis of country. 55% of consumers

prefer the brands of different national companies. The main reason is less price and

relatively good quality. 34% consumers prefers the brands international companies or

imported products. . These consumers contains models, relatively rich people,

professionals etc. last 11% consumers prefers local goods.

53 | P a g e
 TABLE 5:- BASIS OF PURCHASE

BASIS OF PURCHASE

QUALITY
PRICE
EASY AVAILABILITY
NATION

Interpretation:-

The above table shows the basis of purchase of cosmetic products by consumers.

45% of consumers looking for a good quality, 24% consumers are price conscious.

Generally they are looking for a discount. 18% consumers purchase those goods

which are easy avilabe in the nearest market. Remaining 13% consumers are

purchase the goods on the basis of nation ( like- made in India, made in Japan etc.).

54 | P a g e
 TABLE 6:- EXPENDITURE ON COSMETICS

EXPENDITURE ON COSMETICS

10% OF SALARY
20% OF SALARY
30% OF SALARY
MORE THAN 50% OF SALARY

Interpretation :-

The above data shows the expenses percentage of consumers on cosmetic products.

According to this table, 42% of consumers spend 20% of their salary on cosmetic

items, 28%peoples spend 10% of their salary on cosmetics. 22% consumers spend

30% of their salary on cosmetics. At last remaining 8% consumers spend more than

50% of their salary on cosmetics.

55 | P a g e
TABLE 7:- MOST PREFERD COSMETIC COMPANY.

MOST PREFERRED COSMETIC COMPANY

HUL
P&G
ITC
DABUR
OTHER MNC

Interpretation:-

The above table shows the demand of the major companies which engaged in the

business of cosmetic products. At the present time, HUL remains top in this list

with 32% of market demand due to its wide product range and verity of different

segments. P&G occupies second position with the market size of 24%. 18% of the

products of ITC is demanding by consumers due to a good response of Fiama De

Willis and Vivel. At the present time 16% of the different products of Dabur has

been demanded by consumers. Last 10% of the consumers are looking for the

product of a MNC.

56 | P a g e
 TABLE 8:- SOURCES OF BRAND AWARENESS.

DECISION MAKERS

ADVERTISEMENT
FRIENDS
NEIGHBOUR
OTHER SOURCES

Interpretation :-
The above table shows the different sources from where a consumers are able to

know about cosmetic products. 36% of the consumers are get aware with the

products from advertising in T.V or some other medium. 28% of the consumers

are get aware about the product by there friends. 21% awareness comes from

nearest neighbor. Remaining 15% of consumers are able to know about the products

through some other sources like free sampling, mass media, brand promotion etc.

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 TABLE 9:- FFECTING FACTORS RESPONSBLE FOR
THE BUYING DECISION OF CONSUMERS.

EFFECTING FACTORS

COMPANY
PACKAGING
PRICE
BRAND NAME

Interpretation :-
The above table shows the different factors which effects the buying decision of the

consumers. At the present time more than 35%(38%) of consumers prefers the brand

name before purchasing of a cosmetic product. 32% of consumers prefers price as a

important factor in the purchasing of a cosmetic product. 19% preference goes to the

packaging and remaining 11% preference goes to reputation of companies.

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CHAPTER-6

FINDINGS

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 Findings

a. 32% of the customers prefer the products of Hindustan unilever ltd. In lucknow which is

more than other brands.

b. Around 45 % of the total customers buy products on the basis of quality which is provided

by HUL to them.

c. 55% of the customers choose national products over international products and local

products because of its quality and price.

d. 78% of the customers are brand conscious and chose their brand products accordingly.

e. Around 49% of customers buy the products of HUL within the duration of 15- 20days.

f. 48% people prefer to buy HUL products from supermarkets.

g. HUL Products are most preffered brand of customers in Lucknow city because of its variety

in products and high range of product line.

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 CHAPTER-7

RECOMMENDATIONS

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 RECOMMENDATION

i. Customer like best quality product on any price, so company should add latest

technology to their products.

ii. After sales services is the area where Indian and International Company can

highly satisfy the existing customer, because they can make more customer through

their word of mouth. So Indian and International Company should provide latest and

reliable service to their customers.

iii. Customer‘s behavior always looks for some extra benefit with purchasing. They

demand for affordable price for product and gifts with purchasing.

iv. International Company should make strategy to cater every income group

customers in city. Upper income group are affordable to purchase but lower income

group is not. So International Company should make policies to send their

product each and every home.

v. The Indian company should give more emphasis on advertising to create market

awareness and to make a brand image in the minds of investors.

vi. The International Company should do more publicity through road shows,

newspaper and advertisement. As this will create awareness about he fund and

schemes that are at present managed by the International Company.

vii. They should keep a close eye on competitor strategy.

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 CHAPTER-8

PROBLEMS AND LIMITATIONS

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 LIMITATIONS

In attempt to make this project authentic and reliable, every possible aspect of the

topic was kept in mind. Nevertheless, despite of fact constraints were at play

during the formulation of this project.

The main limitations are as follows:

1. Due to limitation of time only few people were selected for the study. So

thesample of consumers was not enough to generalize the findings of the study.

2. The main source of data for the study was primary data with the help of self-

administered questionnaires. Hence, the chances of unbiased information are less.

3. People were hesitant to disclose the true facts.

4. The chance of biased response can‘t be eliminated though all necessary stepswere

taken to avoid the same.

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 CHAPTER-9

CONCLUSIONS

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 CONCLUSIONS

As the research has shown the comparison between customer buying behavior

regarding Indian and International product in recent time. Since the consumer

buying behavior is the important factor to forecast the sales of any product in a

particular area. So company should keep close eye on the market situation. yet,

customer were price sensitive, but the changing market trend and customer view and

preference shown that customer are now quality sensitive .They want quality

product, good services, easy availability of product and better performance by the

product.

These days no of customer buying from malls has been increased.

Also the frequency to visit the malls has been increased substantially. People are

more brands conscious and they are satisfied with the range of products available

there.

We can conclude from our study that still more inclination is towards

indigenous product the preference ratio of indigenous to imported products is 7:3

This is because of the relatively higher price of imported product.

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BIBLIOGRAPHY

67 | P a g e
 BIBLIOGRAPHY

REFRENCES

• News paper: - 1. The Economic Times.

2. Business Standard.

• Journals: - Business World, Business Today.

• Website: -

1. www.wikipedia.com

2. www.fmcgmarketers.blogspot.com

3. www.google.com

4. www.a2zmba.com

• Book: Kotler Philip , Principle of Management

Khothri C R ,

Research Methodology

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APPENDIX

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 QUESTIONNAIRE

Name:-

Address:-

Occupation:-

Contract no:-

1) What is your annual income?

a) Below 100000 p.a b) Rs.100000 to 200000 p.a

c) Rs.250000 to 500000 p.a d)Above Rs. 50000

2) Where do you like to go for shopping?

a) Super market b) Malls

c) Traditional shopping d) e-shopping

3) How many time you like to visit this place for purchasing cosmetic products?

a)During weekends b) monthly

c) weekly d) rarely

4) Are you brand conscious?

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 a) Yes

b) No

5) Are you satisfied with the variety of brand availability in the market?

a) Yes

b) No

6) If yes you prefer?

a) National b) Interntional

7) Which parameter/s effect you‟re buying decisions?

a) Quality b) Price

c) Easy availability d) National / state

8) Which type of Cosmetic products you prefer?

a) Indigenous b) Imported

9) How much percent you spend on cosmetic products from your total consumption ?

a) 10% b)20%

c) 30% d) more than 50%

10) Which company‟s cosmetic brands you prefer much more?

a) HUL b) P&G

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 c) ITC d) DABUR e) other company

11) Which factor mostly affects your decision while purchasing any cosmetic

product ?

( ) FRIENDS ( ) ADVERTISEMENTS ( ) PARENTS

( ) OTHER

12) How will you rate your product in terms of following factors ?

PRICE [ ] [ ] [ ] [ ] [ ]

QUALIT [ ] [ ] [ ] [ ] [ ]

LOOK [ ] [ ] [ ] [ ] [ ]

Durability [ ] [ ] [ ] [ ] ]

Fragnence [ ] [ ] [ ] [ ] [ ]

13)Which character attract your choice?

a) Brand name b) Price

c) Packaging d) Company

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