report truconsumer preferences and buying behaviour of customer towards vending machine of hulpti1...

7/27/2019 Report TruConsumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HULpti1 (1)

http://slidepdf.com/reader/full/report-truconsumer-preferences-and-buying-behaviour-of-customer-towards-vending 1/90

Consumer Preferences and buying Behaviour Of Customer Towards Vending Machine of HUL

1

INTRODUCTION

1.1 Object of Project:

The project or presentation forms a very vital aspect during curriculum of

Master Degree in business administration. During the first year student requires to

undergo number of presentations these presentation are the integral part of MBA.

All this certainly gives an overview about the organisation, various department

in the organisation also deferent task performed and attributes required to perform such a

task.

The basic objectives of this study are to get knowledge about organisation and

its management philosophy.

a) To get an opportunity for understanding the life of business

management.

b) To get acquainted with organizational problems, perception &

challenges.

c) To get basic idea about company profile and products.

d) To study the growth and expansion of organisation.

e)

Facilities provided by company

The project concludes with a written report, a presentation, and findings and

recommendations.

The programme integrates general management concepts that familiarise

students with the knowledge required to be employed in numerous sectors in international

organisations and environments.




2

1.2 Selection of Topic:

Selling of any product, there is needed to build relationship with customer. For

building a relationship there is need for knowing the customer behaviour and how will

be they satisfied?

This project is undertaken to know the consumer preference & buying behaviour

towards vending machine of HUL (Lipton). Also through this project get awareness that

which factors affect on the selling of vending machine of HUL (Lipton ) in the Nasik

city area. Because the area where project was undergoing, it is almost industrial area.

There were some limitations while doing the project. The data was collected by

personal interviews of the respondents. It was very challenging to fill up the

questionnaire as most of them did not show any interest in filling questionnaires.This study will help HUL to know the most popular way by which they are providing

services and quality to the customers and to know various customers Perceptions.

From the study, we found that, the customers were highly satisfied with the products and

service of HUL, but there were some complaints regarding after sales. It was found that

vending machine of HUL(Lipton ) is having a good brand image in the market.

The present is the era of customers. Customers are more knowledgeable than ever

before and because the customer is more knowledgeable, companies must be faster,

more agile and more creative than few years ago. So companies should strive to enhance

customer satisfaction through knowing their expectations regarding products.




3

1.3 Objectives of study:

a) To know consumer behaviour for purchase vending machine of HUL

(Lipton).

b) Market share of competitors for Vending Machine in Nasik.

c) To know Awareness of vending machines Among Sample

respondent.

d) To identify the factor which influences on consumer‘s purchasing of

vending machines.

e) To know the role of advertisement (promotional activities) for creating

awareness of vending machines.

f) To know which medium play important role for purchasing Vending

Machine.

g) Study whether customers are satisfied with Product and services or not

h) To study consumer preference for vending machine of HUL.




4

1.4 Research Methodology:

1.4.1 Meaning of research:

Research is a common parlance refers to a search for knowledge. One can also

define research as a scientific & systematic search for pertinent information on a specific

topic. In fact research is an art of scientific investigation. The meaning of research as ―a

careful investigation or inquiry especially through search for new fact in any branch of

knowledge.‖ Redman & mory define research as a ―systematized effort to gain new

knowledge.‖ Some people consider research as a movement, a movement from the

known to the unknown.

1.4.2 Sample Size : 150 industries.

1.4.3 Sampling Method:

Sampling method used for this project is Simple random sampling

Simple random sampling:

This type of sampling is also known as chance sampling or probability sampling

where each and every item in the population has an equal chance of inclusion in

the sample and each and every item in the population has an equal chance of the

same probability of being selected.

1.4.4 Source collecting the data:

In dealing with any real life problem it is often found that data at hand are

inadequate, and hence, it becomes necessary to collect data that are appropriate. There

are several ways of collecting the appropriate data which differ considerably in context

of money cost, time and other resources at the disposal of researcher.

I. Primary data:

Primary data collected for this project through personal i nterview.

(i) Through personal interview:

The investigator follows a rigid procedure and seeks answers to the set of pre-conceived

questions through personal interviews. This method of collecting data is usually carried

out in a structured way where output depends upon the ability of the interviewer to a

large extent.




5

(ii) By questionnaires:

The researcher and the respondents do come in contact with each other if this method of

survey is adopted. Questionnaires are mailed to the respondent with the request of return

after completing the same. It is the most extensively used method in various economic

and business survey.

II. Secondary data:

Here for this particular study we have use the secondary data collection it is the

data which is not collected directly but obtained from the published and unpublished

source and secondary data collected for this study are:

Through news paper.

Magazines.

Journal and books.

Internet and websites.

1.4.5 Types of research:

Type of research used for this project is Descri ptive vs. Analytical .

1. Descriptive vs. Analytical:

it includes surveys & fact-finding enquiries of different kinds. The major

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

In social science & business research we quite often use the term Ex post facto research

for descriptive reset studies. The main characteristics of this method are that the

researcher has no control over the variables; he can only report what was happened or

what is happening. In analytical research, on the other hand, the researcher has to used

facts or information already available.

1.4.6 Sample Unit: Industrial area in Nasik.

1.4.7 Sample Geography: Nasik MIDC area.




6

1.5 Scope of Study:

(i) This study helps to know the image of HUL products in customers mind.

(ii) This study even helps to know about the market potential HUL vending

business sector in Nasik region.

(iii) This research also helps the company to know where they are lagging to their

competitors and in order to increase the sales.

(iv) The company can tap unknown market through these research studies

available by increasing their potential of the product.

(v) It gives position of all competitors in Nasik market




7

1.6 Significance:

(i) Understanding their buying behaviour is one of the important aspects needed for small

business marketing success.

(ii) Unless you understand their buyer behaviour is is very hard to gain them as customers

and keep them loyal.

(iii) To get your customers to have an emotional attachment to your brand is one of the

keys to keeping them loyal. As well it is one of the key factors in gaining referrals and

recommendations.

(iv) You need to have a clear understanding both the rational reasons and importantly the

emotional reasons customers buy.

(v) Understanding this can help you with the timing of your marketing tactics.

(vi) If you have a range of products and services it is a good idea to understanding which

particular products or services they buy on a regular basis. By having this

understanding you can make strategic decisions such as whether you keep the whole

range, focus on one or two key products or services only.

(vii) Vending machines are machines that dispense drinks like tea, coffee, juice and other

consumer products that don‘t need a sales person.

(viii) Because of the fast-pace society we live in, we also need fast-paced machines to give

us what we need.

(ix) The vending industries not only gives consumers the product they need, it also gives

business opportunities to those who want to operate their own business without the

need of high investment.




8

1.7 Limitations:

(i) The training was for shorter period of time that is why it was not possible to carry

out a detail study.

(ii) The sample size was limited.

(iii) The project period was after the pick season of Tea & Coffee, so it is difficult to

convince outlet owners.

(iv) Certain type of respondents such as important officials or executives or people in

high income group may not be easily approachable under interview method and to

that extent the data may prove inadequate.

(v) The presence of interviewer on the spot may over stimulate the respondent,

sometime even to the extent that he may give imaginary information just to make

the interview interesting.




9

1.8 Rational of study:

The study provides as good instrument for overall development for future manager

as the student acquires both the theoretical as well as practical knowledge

The student develops qualities of good manager.

Awareness regarding the industrial environment is mate to student.

Study provides an opportunity to the management to take any corrective action

based on results or recommendation.




10

COMPANY PROFILE

Organisation Name: Hindustan Unilever Limited (HUL)

2.1 Organisation Introduction:

HUL is India's largest consumer goods company based in Mumbai, Maharashtra.

It is owned by the British-Dutch company Unilever which controls 52% majority stakein HUL. Its products include foods, beverages, cleaning agents and personal care

products.

Hindustan Unilever's distribution covers over 2 million retail outlets across India

directly and its products are available in over 6.4 million outlets in the country. As per

Nielsen market research data, two out of three Indians use HUL products.

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

http://en.wikipedia.org/wiki/Mumbai,_Maharashtra

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

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

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


http://en.wikipedia.org/wiki/File:Hindustan_Unilever_Logo.svg

http://en.wikipedia.org/wiki/File:Hindustan_Unilever_Logo.svg










11

2.2 History:

HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956

as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati

Mfg. Co. Ltd. and United Traders Ltd.

Lever Brothers started its actual operations in India in the summer of 1888, when crates

full of Sunlight soap bars, embossed with the words "Made in England by Lever

Brothers" were shipped to the Kolkata harbour and 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 isdistributed 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.

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.

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

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




12

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.

The UNL factory manufactures HUL's products like Soaps, Detergents and Personal

Products both for the domestic market and exports to India.

The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on the

Foods and Beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari General

Foods, with significant interests in Instant Coffee. In 1993, it acquired the Kissan business

from the UB Group and the Dollops Icecream 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,

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.




13

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 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 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, 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.




14

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.

In January 2010, the HUL head office shifted from the landmark Lever House, at

Backbay Reclamation, Mumbai to the new campus in Andheri (E), Mumbai.

On 15th

November, 2010, the Unilever Sustainable Living Plan was officially launched

in India at New Delhi.

In March, 2012 HUL‘s state of the art Learning Centre was inaugurated at the Hindustan

Unilever campus at Andheri, Mumbai.

In April, 2012, the Customer Insight & Innovation Centre (CiiC) was inaugurated at the

Hindustan Unilever campus at Andheri, Mumbai




15

2.3 Organisation Profile:

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, Pond‘s, Vaseline, Lakmé, Dove,

Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan,Kwality Wall‘s and Pureit.

The Company has over 16,000 employees and has an annual turnover of around

Rs. 21,736 crores (financial year 2011 - 2012). 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 €46.5 billion in

2011. Unilever has about 52% shareholding in HUL.




16

Hindustan Unilever Ltd

Type : Public

Traded as BSE: 500696BSE SENSEX Constituent

Industry Consumer goods

Founded 1932

Headquarter Mumbai, Maharashtra, India

Key people Harish Manwani (Chairman), Nitin

Paranjpe (CEO and MD)

Products Foods, beverages, cleaning agents and

personal care products

Revenue 19,401 crore (US$3.87 billion) (20102011)

Net income 2,305 crore (US$459.85 million)

Employees 16,500 (2011)

Parent Unilever Plc (52%)

Website www.hul.co.in

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

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

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

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

http://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500696

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




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

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

http://en.wikipedia.org/w/index.php?title=Nitin_Paranjpe&action=edit&redlink=1




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

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

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



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


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

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


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



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







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

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



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

http://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500696

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

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

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

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




17

2.4 Company Vision

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

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.

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.

Unilever products touch the lives

of over 2 billion people every

day – whether that's throughfeeling 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:




18

2.5 Company Purpose & principles

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

behaviour towards everyone we work with, the communities we touch, 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 environmentalimpacts 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.




19

2.6 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 over 16,500 employees, including over 1500 managers

The fundamental principle determining the organisation structure is to infuse

speed and flexibility in decision-making and implementation, with empowered managers

across the company‘s nationwide operations.

Executive directors:

The Executive directors are members of the HUL Management Committee as well as the

Board of HUL.

Mr. Nitin Paranjpe - CEO and Managing Director

Mr. Nitin Paranjpe (48) joined the Company as a Management

Trainee 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. Sridhar Ramamurthy (47) is a Chartered Accountant (Gold Medallist) as well as a

Cost Accountant and Company Secretary.

Mr Pradeep Banerjee - Executive Director, Supply Chain

Mr. Pradeep Banerjee (51) joined HUL as a Management Trainee in 1980.

http://www.hul.co.in/aboutus/companystructure/executivedirectors/NitinParanjpe.aspx

http://www.hul.co.in/aboutus/companystructure/executivedirectors/RSridhar.aspx

http://www.hul.co.in/aboutus/companystructure/executivedirectors/PradeepBanerjee.aspx







20

Management Committee

The day-to-day management of affairs of the Company is vested with the ManagementCommittee which is subjected to the overall superintendence and control of the Board.

The Management Committee is headed by Mr. Nitin Paranjpe and has functional heads

as its members representing various functions of the Company

Mr. Nitin Paranjpe - CEO and Managing Director

Mr. R. Sridhar - Chief Financial Officer

Mr. Hemant Bakshi - Executive Director, Home & Personal Care Ms. Geetu Verma, Executive Director, Foods

Mr. Manish Tiwary - Executive Director, Sales and Customer Development

Mr Pradeep Banerjee - Executive Director, Supply Chain

Ms. Leena Nair - Executive Director, HR

Mr Dev Bajpai – Executive Director, Legal and Company Secretary

Non-executive directors

The Company has Non-Executive Chairman and four Non-Executive IndependentDirectors

Mr. Harish Manwani - Chairman

Mr. A. Narayan - Independent Director

Mr. S. Ramadorai - Independent Director Dr. R. A. Mashelkar - Independent Director

Mr. O. P. Bhatt - Independent Director



http://www.hul.co.in/aboutus/companystructure/executivedirectors/HemantBakshi.aspx


http://www.hul.co.in/aboutus/companystructure/executivedirectors/geetu-verma.aspx


http://www.hul.co.in/aboutus/companystructure/executivedirectors/manish-tiwary.aspx




http://www.hul.co.in/aboutus/companystructure/executivedirectors/LeenaNair.aspx


http://www.hul.co.in/aboutus/companystructure/executivedirectors/devbajpai.aspx




http://www.hul.co.in/aboutus/companystructure/nonexecutivedirectors/HarishManwani.aspx


http://www.hul.co.in/aboutus/companystructure/nonexecutivedirectors/ANarayan.aspx


http://www.hul.co.in/aboutus/companystructure/nonexecutivedirectors/SRamadorai.aspx


http://www.hul.co.in/aboutus/companystructure/nonexecutivedirectors/RAMashelkar.aspx


http://www.hul.co.in/aboutus/companystructure/nonexecutivedirectors/OPBhatt.aspx


















21

2.7 Product line of Hindustan Unilever Limited.

I. Food brands

HUL is one of India‘s leading food companies. Our passion for understanding what

people want and need from their food - and what they love about it - makes our brands a

popular choice

Brooke Bond 3 Roses Annapurna

Brooke Bond Red Label Brooke Bond Taaza

Brooke Bond Taj Mahal

Bru

Kissan Knorr

Kwality Wall’s Lipton

Modern Brooke Bond Sehatmand

II. Home care brands

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

consumers across India.

Active Wheel Cif

Comfort Fabric Conditioner Domex

Rin Sunlight

Surf Excel Vim

III. Personal care brands

Our personal care brands, including Axe, Dove, Lux, Pond's, Rexona and 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.

http://www.hul.co.in/brands/foodbrands/3Roses.aspx


http://www.hul.co.in/brands/foodbrands/Annapurna.aspx


http://www.hul.co.in/brands/foodbrands/RedLabel.aspx


http://www.hul.co.in/brands/foodbrands/Taaza.aspx


http://www.hul.co.in/brands/foodbrands/TajMahal.aspx


http://www.hul.co.in/brands/foodbrands/Bru.aspx


http://www.hul.co.in/brands/foodbrands/Kissan.aspx


http://www.hul.co.in/brands/foodbrands/Knorr.aspx


http://www.hul.co.in/brands/foodbrands/KwalityWalls.aspx

http://www.hul.co.in/brands/foodbrands/lipton.aspx


http://www.hul.co.in/brands/foodbrands/modern.aspx


http://www.hul.co.in/brands/foodbrands/sehatmand.aspx


http://www.hul.co.in/brands/homecarebrands/ActiveWheel.aspx


http://www.hul.co.in/brands/homecarebrands/Cif.aspx


http://www.hul.co.in/brands/homecarebrands/Comfort.aspx


http://www.hul.co.in/brands/homecarebrands/Domex.aspx


http://www.hul.co.in/brands/homecarebrands/Rin.aspx


http://www.hul.co.in/brands/homecarebrands/Sunlight.aspx


http://www.hul.co.in/brands/homecarebrands/SurfExcel.aspx


http://www.hul.co.in/brands/homecarebrands/Vim.aspx

http://www.hul.co.in/brands/homecarebrands/Vim.aspx











http://www.hul.co.in/brands/foodbrands/KwalityWalls.aspx












22

Aviance Axe

LEVER Ayush Therapy Breeze

Clear Clinic Plus

Closeup Gel Toothpaste Dove

Fair & Lovely Hamam

Lakme Lifebuoy

Liril 2000 Lux

Pears Pepsodent

Pond’s Rexona

Sunsilk Vaseline

Net Sales Rs. 19,401 Crores

Net Profit Rs. 2,306 Crores

http://www.hul.co.in/brands/personalcarebrands/Aviance.aspx


http://www.hul.co.in/brands/personalcarebrands/Axe.aspx


http://www.hul.co.in/brands/personalcarebrands/LEVERAyushTherapy.aspx

http://www.hul.co.in/brands/personalcarebrands/Breeze.aspx


http://www.hul.co.in/brands/personalcarebrands/Clear.aspx

http://www.hul.co.in/brands/personalcarebrands/ClinicPlus.aspx

http://www.hul.co.in/brands/personalcarebrands/Closeup.aspx


http://www.hul.co.in/brands/personalcarebrands/Dove.aspx


http://www.hul.co.in/brands/personalcarebrands/FairAndLovely.aspx

http://www.hul.co.in/brands/personalcarebrands/Hamam.aspx


http://www.hul.co.in/brands/personalcarebrands/Lakme.aspx


http://www.hul.co.in/brands/personalcarebrands/Lifebuoy.aspx


http://www.hul.co.in/brands/personalcarebrands/Liril.aspx


http://www.hul.co.in/brands/personalcarebrands/Lux.aspx


http://www.hul.co.in/brands/personalcarebrands/Pears.aspx


http://www.hul.co.in/brands/personalcarebrands/Pepsodent.aspx


http://www.hul.co.in/brands/personalcarebrands/Ponds.aspx


http://www.hul.co.in/brands/personalcarebrands/RexonaSoap.aspx


http://www.hul.co.in/brands/personalcarebrands/Sunsilk.aspx


http://www.hul.co.in/brands/personalcarebrands/Vaseline.aspx













http://www.hul.co.in/brands/personalcarebrands/FairAndLovely.aspx



http://www.hul.co.in/brands/personalcarebrands/ClinicPlus.aspx

http://www.hul.co.in/brands/personalcarebrands/Clear.aspx


http://www.hul.co.in/brands/personalcarebrands/LEVERAyushTherapy.aspx






23

2.8 Out-of-home to push foods business:

The country's largest fast moving consumer goods (FMCG) company, Hindustan

Unilever (HUL), is using ‗out-of-home' aggressively to grow its foods business. Out-of-

home here means initiatives undertaken beyond just selling products.

Polman had said out-of-home had a key role to play in galvanising its foods business in

India. HUL Managing Director Nitin Paranjpe agreed: "Out-of-home is a very

significant opportunity. And we will look to leverage that."

The company has taken few steps in that direction, with the launch of three Bru cafes in

three cities, including Mumbai, recently. Bru is the coffee brand of HUL. The move, say

FMCG analysts, is to build traction for the brand on the ground, something Paranjpe

doesn't deny. He said, "We will systematically approach the business of foods, enter

categories, take up initiatives, where Unilever has an advantage and where we will be

able to build the market for the long-term."

Even as it steps into the cafe space, HUL is also ramping up its Swirls ice-cream

parlours. "At the moment, we have 130 of them," said Paranjpe. "We will add rapidly to

the number in 2011, possibly one a week."

On packaged foods, while there is no plan to do anything out-of-home, the company has

been using experiential marketing tools to increase awareness and improve sampling.

During the launch of Knorr soupy noodles last year, vans dishing out portions of it were

posted at different locations in cities such as Mumbai.

As HUL attempts to push its foods business using out-of-home, analysts say the success

of it will depend on how much business these outlets can generate. Paranjpe does not get

into the details of how much these outlets, especially the Swirls parlours, are generating

at the moment. But the service model has been a difficult one for other FMCG

companies. Amul, for instance, is looking to discontinue its pizza and ice cream

parlours.




24

Distribution network of HUL ooh division:

OOH division has a very basic distribution network, with materials coming

directly from factory to depot & from there to distributors. Fron distributors it directly

goes to customers. Haryana region has 16 distributors, with service part, taken care byeureka Forbes for all customers.

As far as sales lead generation & acquisition of accounts is concerned, that is done by

HUL OOH divisions personnel, & later those accounts are alloted to distibutors

depending on their size & capability of handling an account. Then distibutors technician

team would install the machine.

On an average per month a distibutors sells 5-6 tonnes of materials, the largest distibutor

in the region has a sale of 15-18 tonnes of premix. On an average a distibutors has 8% to

12% margine in products given by the company.

FACTORY

DEPOT DEPOT

Distributer Distributer Distributer Distributer

Customer Customer Customer Customer




25

2.9 Prospect market capture by hunting process:

Cold Calling

Meeting

Quotation

send

Installation

Rate finalisation

Discussion




26

2.10 Awards and honours 2011

In 2011, HUL received more than 70 awards and honours. Here's a list of some of them:

HUL received the prestigious 'Golden Peacock Global Award' for Corporate Social

Responsibility

HUL received the 'Golden Peacock Environment Management Award' in the FMCG

sector

HUL received the 'Outstanding CSR Award' in the FMCG category at the India Shining

Star Awards organised by Wockhardt Foundation

HUL conferred the 'Best Sustainability & CSR Practices Award' by the Asian Centre for

Corporate Governance & Sustainability

HUL received the 'Rolta Corporate Award' for the top Indian Company in the FMCG

sector at the awards ceremony organised by Dun & Bradstreet




27

HUL has been awarded the National Award for Excellence in Corporate Governance by

the ICSI

HUL was recognised as one of the 'Top Five Indian Companies in Corporate

Governance' by IR Global Rankings

HUL has earned the award for the Best FMCG Company of the Year by CNBC Awaaz

Storyboard Consumer Awards

HUL has been ranked No.2 in the Fortune India's Most Admired Companies list

(announced in 2012)

HUL has been ranked sixth in the list of 'The World's Most Innovative Companies'

published by Forbes magazine

HUL emerged as the 'Dream Employer' in the annual B-School Survey conducted by

A.C. Nielsen.

HUL has been recognised as the Best Employer Brand in Asia at the Asia's Best

Employer Brand Awards

HUL awarded CII-Prize for Leadership in HR Excellence

HUL has been awarded the 'No. 1 Best Employer for 2011 in India' by Outlook Business

and Aon Hewitt

HUL ranked sixth in the list of 'Global Top Companies for Leaders 2011 Study Results'

by Aon Hewitt, The RBL Group, and Fortune

The Pureit in-home water purifier received the 'UNESCO Water Digest Award' in the

'Best Domestic

Non-Electric Water Purifier', and the 'Best Water R&D and Technological Breakthrough'

categories




28

Pure it Compact was voted 'Product of the Year 2011' in the 'Water Purifier' category at

the globally-acclaimed consumers' recognition forum.

Pure it Compact received the votes of 30,000 consumers from 36 markets across the

country, in an online study conducted by A.C. Nielsen

Six HUL brands have been ranked among the Top 15 brands in Brand Equity's 'India's

Most Trusted Brands Survey' conducted by A.C. Nielsen

HUL's Khamgaon factory received the 'Greentech Environment Excellence Award' in

the FMCG category

HUL's Khamgaon factory received the Gold Award in FMCG Sector for Outstanding

Achievement in Safety Management




29

PRODUCT PROFILE 3.1 Vending Solution Market:

Beverage Vending Solution market in India is roughly 15 years old, which

marked the entry of Nescafe in the market. In next some years, others players like HUL,

CCD, Barista etc. entered in this market. In order to have a better understanding of the

vending solutions market we first need to study, that‘s why a vending machine is

preferred by corporate houses & other institutes & organization.

Cost Savings:

Each of the vended beverages contains exactly the same amount of ingredients. It is

found that the biggest saving comes from the reduction in the need for fresh milk as themachine holds powdered milk. The powdered mixes are great & can add a really good

creamy froth on beverages.

Drink Choice:

Modern vending machine are not only compact but can offer 8 or more choices that can

include anything from an espresso to a regular Tea, flavored teas café latte, moccachino,

chocachino, cappuccino & yes plain white or black coffee too. Drinks can be selected

with or without sugar & milk too, allowing an incredible choice of beverages. It‘s great

to offer clients & staff real choices.

Convenience:

There is no waiting for the kettle to boil when you have a vending machine. It remains

on & ready for the moment you press the button. So be it late in night or early in the

morning, it can vend a hot cup of beverages anytime & also fast. This also adds value in

the coffee environment where getting a quick cup of tea/coffee, means exactly that.

Hygiene:

As the vending machine holds all the ingredients inside airtight canisters, there are no

messy containers left out on kitchen or pause area tables to attract ants or cockroaches.

The machines have automatic rinsing cycles and hot water is flushed through the

dispensing pipes & mixing bowls to keep them clean.

Reliability:

Modern machine are robust & will vend cup without interruption. Only things is needed

to be done is to keep them clean & empty the waste containers & replace a few rubber

seals every now & then after all the are exposed to heat & water




30

Services:

Wide Coverage-

The service infrastructure of OOH covers over 300 concessionaries across 100 plus

towns with over 600 dedicated skilled technicians to facilitate 24/7 technical support

& assistance.

Strong resourcing-

our trained and well equipped technical, sales & support teams are fully geared to

meet all your services & maintainance requirements. We also have a wide footprint to

support natonal deals, keeping pace with the growth aspirations of our clients as they

expand into new regions.

World Class Research- we have a global Unilever research centre, at Bangalore which has world class

research facilities which give us an edge in product & technical innovation.

Safety-

Hot water auto flush feature in machines for auto cleaning of mixing units at regular

intervals. Also temperature lock feature in machines is provided to ensure that drinks

don‘t get dispensed below minimum specified temperatute.

Hygine- Easily detachable machine parts to facilitate cleaning. Also the machine has an

intrusion resistant design so as to have minimum possibilities of external impurities

getting inside.

Quality-

All machines undergo strict internal quality checks & audits. All products are

microbiologically tested, & are safe for consumption.

Consistency-

The DC motors in the machine are better suited to handle voltage fluctuations.

Patented canister design for smooth & consistent flow of premixes.

External Audit-

For regular monitoring & better control we have engaged an independent agency to

conduct external audits & MIS reports to generates unbiased feedback. The agency

also provides elaborate demonstrations for the operators to uplift the safety & hygine

standardes at sites.




31

3.2 Lipton Vending Machines

We are one of the leading authorized dealers of Vending Machines across the country.

Manufactured using premium quality raw material, advanced machines, tools and

equipment in compliance with latest market trends, these are available in various sizes,shapes and other associated specification for our clients. Moreover, these are quality

tested on various parameters to ensure their high quality, strength and dependability. Our

clients can avail these vending machines from us at the most competitive prices.

We offer qualitative range of cold and hot vending machines, it is used in offices,

hotels, fast food joints, cafeterias and in many other places. Our range of vending

machines such as 4 lane u cup vending machine, single option vending machines, 3 lane

vending machines, 2 lane vending machines, high speed vending machine, 4 lane

vending machines are manufactured by using high grade raw material and adheres to the

international standards. We also have expertise in offering customized solutions to our

customers.




32

Smart Card Machine:

This mechanism can be provided to suit the need of big establishments. The card reader

can be externally attached to the vending machine.

Specification:

Dimension Height-890 mm

Width-440 mm

Depth- 585 mm

Weight 60 kg

Power Supply 230 Volts/50Hz

Absorbed Power 200 watts

Canister Capacity 1.2 kg

Features:

Option of 5 ingredients in nature of coffee,

tea soup etc.

Post or prepaid option through smart card

Option of consumption data down loading

to PC for MIS processing.

Staggered dispensing option for tea bag

Temperature interlocking

Auto Cleaning

Water source- Built in tank bubble top




33

High speed machine:

We offer a wide selection of Lipton high speed machine coffee machines perfect for bulk

coffee making in hotel industry. Our coffee machines brew hot, delicious coffee and

specialty coffee in just few seconds. These machines are made of quality steel and

equipment using superior technology to meet the required specifications of our client's

Specification:

Specification: Dimensions Height- 890mm

Width-440mm

Depth- 585mm

Weight 60kg

Power Supply 230Volts/50Hz

Absorbed Power 2500 watts _

Canister Capacity 1.2 kg

Featurs:

Option of 5 ingredients in nature of coffee,dairy whitener , soup etc.

Option of simultaneous dispensing of any 3

drinks.

Option of Cappuccion

Staggered dispensing option for dairy

whitener

Dispensing rate – 15 cups/min of 100 ml each

(approx 250 cups non-stop)


Auto cleaing




34

Fresh brew machine:

Our range of Fresh Brew Machines is widely appreciated and in high demand.

These are a type of instant coffee machine, which has got a high demand in the global

markets. These machines are capable of making delicious and hot coffee within few

seconds. These coffeemakers are excellent coffee making equipments that have been

procured from reputed brands like Rancilio. We provide them in different technical

varieties and makes at market leading prices.

Specification:

Dimensions Height - 665 mm

Length - 410 mm

Depth - 560 mm

Weight 50 Kg

Power Supply 230 Volt/ 50 Hz

Observed Power 2000 Watts

Pre- mix canister cap. 1 Kg

Coffee bean canister cap. 1 Kg

Features:

Option of 4 ingredients in the nature of

coffee beans, dairy whitener, soup etc

Proving 10 drinks option including 6

options of fresh beans coffee.

Dispensing rate-2 cup/min of 100 ml


Water Source- On-line / Bubble top.




35

2 Lane (Cute) Vending Machine

Specification:

Specifications Lane 2 (Cute)

Machine Dimension (WDH)mm 200 X 440 X 625

Premix Capacity (each lane) 1.2 kg each

Weight of Machine 15 kg

Max. Load 1.4 Kw.

Power Supply 230 AC, 15A

Mixing Unit 1

Separate Hot Water Option No

Hi-speed Option No

Password Locking in PCB No

2 Lane (Robo) Vending Machine

Featurs:

Option of 2 ingredients

Dispensing Rate (cups/min)- 03-05 Cups

Boiler Capacity - 2.0 Ltrs. (Insulated)

21 Half Cup Facility

Digital Counters

Auto cleaning

Water Source - 20 Ltrs. (Bubble Top)




36

Specification:

Specifications Lane 2 (Robo)




Max. Load 2.2 Kw.


Mixing Unit 2


Hi-speed Option No

2 Lane Machine:

Features:


Dispensing Rate (cups/min)- 04-06 Cups

Temperature Interlocking

Password Locking in PCB



Digital Counters

Auto cleaning

Water Source - 20 Ltrs. Bubble To




37

Specification:

Machine Dimension(W*D*H)mm

330 X 430 X 620

Premix Capacity (each lane) 1.2 kg.


Max. Load 2.2 Kw

Power Supply 230V AC, 15A

Separate Hot Water Option Yes

Hi-Speed Opt. (8-10 cups/min.) Yes

3 Lane ( Robo) Vending Machine:

Features:


Dispensing Rate (cups/min)- 04-06

Cups




Half Cup Facility

Digital Counters (for Each Lane)

Auto cleaning




38

Specification:

Specifications Lane 3 (Robo)




Max. Load 2.2 Kw.


Mixing Unit 3


Hi-speed Option No

Features:



Cups





Digital Counters

Auto cleaning




39

3 Lane Machine

Specification:




Max. Load 2.2 Kw.


Mixing Unit 3


Hi-speed Option Yes

Features:


Dispensing Rate (cups/min)- 04-06Cups





Digital Counters

Auto cleaning




40

4 Lane Machine:

We are one of the leading suppliers of 4 Lane Coffee Vending

Machines. These machines are highly suitable for making 4 cups of coffee at same time.

Manufactured using high quality material, our range is rust free and can work for longer

period

Specification:

Machine Dimension (W*D*H)mm 330 X 520 X 660



Max. Load 2.2 Kw.



Hi-speed Opt. (8-10 cups/min.) Yes

Features:



Cups



Boiler Capacity - 3 Ltrs. (Insulated)

Half Cup Facility


Auto cleaning




41

The New 4 Lane U Cup Machine:

HUL is one of the leading suppliers of 4 lane coffee vending machine.

Specification:

Dimension

Height- 650mm

Widtht-325mm

Depth-590mm

Weight 25 Kg

Power Supply 230V/50Hz

Absorbed Power 2500 Watts

Canister Capacity 1 Kg

Features:

Option of 4 ingredients in nature of

coffee, tea, soup etc.

Staggered dispensing option for tea bag


Auto cleaning

Water source- online/ bubble top




42

6 Lane Machine:

Specification:

Machine Dimension (W*D*H)mm

Height- 620mm

Width-470mm

Depth-430mm

Premix Capacity (each lane) 1.2 kg


Max. Load 2.4 Kw



Features:


Dispensing Rate (cups/min)-

04/06/11Cups



Boiler Capacity - 3 Ltrs. (Insulated)

Half Cup Facility


Auto cleaning

Water Source - 20 Ltrs. (Bubble Top)




43

3.3 Premixes for Lipton machine:

Our Lipton premix provides a rich taste and essence. Specially prepared for

tea drinkers, they contain no artificial flavors, colors and preservatives. 100% natural,

they are also available in various flavors of cardamom, masala, lemon. just by adding

hot water, one can easily relish its taste. We are one of the prominent manufacturers,

suppliers and exporters of a wide range of Tea Premix.

1) Hot Lemon Tea Premix:

2) Lipton Cardamom Tea Premix:

Lemon flavour brings out that real punch of the fruit and is an

excellent choice for a hot or iced tea. We are well equipped with

proper warehousing facilities to store our product. Lemon flavor

brings out that real punch of the fruit and is an excellent choice for

a hot or iced tea. We are well equipped with proper warehousing

facilities to store our products.

We are one of the reputed companies that supply a quality range

of Lipton Cardamom Tea all across the country. These are

hygienically prepared and are highly appreciated by our clients

all over the nation. We are also offering hot tea along with

cardamom to give excellent flavour. Our products are highly used

in canteens, restaurants, colleges, hospitals and many more.

Features:

Widely used in various places

Very tasty

Popular




44

3) Lipton Hot Lemon Tea (Black):

4) Lemon Ice Tea Premix:

5) Milk Badam

Lipton Hot Lemon Tea (Black) is a unique product from

the stables of Lipton that also comes with several other

flavours and forms. Tea has always been a staple product

used in the cultural diets for centuries even though

research has just started providing how beneficial they

could be to our health. This tea includes several herbal

ingredients available in several flavors and varieties.

Low Calorie, no artificial flavors.

Ingredients: Sugar(91%), Acidifying Agent (330),

Instant tea, Salt, Lime Juice powder, Sucralose

(sweetener).

Lipton Ice Tea gives you great refreshment and its

Healthy.

We also serve delicious Milk Badaam to our valued clients.

Best quality nuts / badaam are used in preparing this drink.

The flavour of this drink is very tasty and mouth watering.

This can me drank in winters using warm milk instead of

cold milk. This is a nutritional drink and is demanded by the

customers.

Features:

Nutritious and healthy

Fresh

Relishing

http://media.bigbasket.com/media/uploads/p/l/281596.jpg






45

6) Bru Coffee:

7) Dairy Milk Powder:

Knorr Tomato soup powder

We are also offering a wide range of Bru coffee through our

machines. These are being processed using high grade coffee

beans sourced from a reliable and certified dealer. The coffee

powder is easily mixed with milk and water. The taste of the

coffee is very refreshing and soothing. We are supplying these

products according to the needs of our clients.

Features:

Delicious taste

Authentic texture

Highly popular

Gives natural flavor

Our firm is one of the leading firms that supply a qualityrange of Dairy Milk Powder all around the country. These

are quality tested at every stage of production as per the

international standards and norms. The powder is very

helpful in reducing the cholesterol and purifying blood. We

are offering these products as per the requirements of our

clients.

Features:

Stringent test

Pure

Demanding




46

8) Knorr Tomato soup powder

Lipton Tea Premix (sugar Free):

9) Lipton Tea Premix (sugar Free):

In the series of Premixes, we are also supplying a quality range of

Knorr Soups to meet the demands of our customers. These are

best soups available in the market. Different flavors and varieties

are available in these soups. The ingredients that are mixed in the

soups are white pepper, soy and dry fenugreek leaf. Soups are the

starters that are had before the main course. But people all over

the world have soups as snack. We offer nutritionally rich

Tomato Soup Powder that are mixed in boiled water and served

hot. The delicious Soup Mixes offered by us are prepared from

fresh vegetables and spices.

Features:

Delicious

Widely appreciated

Po ular

Tea has never tasted so good. Enjoy the sweet, tart taste of

LIPTON sugar free Tea Mix, an instant glass of sugar-free,

berry-filled flavor. LIPTON sugar free tea mix has a sweet, tart

taste. Mix with water and enjoy an instant glass of sugar-free,

berry-filled flavor. LIPTON sugar free Tea Mix has total

refreshment down. Instant refreshment is yours anytime with

the powdered mixes.




47

THEORY RELATED WITH PROJECT 4.1 Consumer Markets and Consumer Buyer Behaviour.

Buying behaviour is never simple, yet understanding it is essential task of

marketing management. Consumer buyer behaviour refers to the buying behaviour of

final consumers-individual and households that buy goods and services for personal

consumption. All of these final consumers combine to make up the consumer market.

Consumers around the world vary tremendously in age, income, education level,

and tastes. They also buy an incredible variety of goods and services. Hoe these diverse

consumers relate with each other and with other elements of the worlds around their

choice among various products, services, and companies. Here examine the fascinatingarray of factors that affect consumer behaviour.

1.2 Model of Consumer Behaviour:

The environment

Marketing stimuli Other

Product Economic

Price Technological

Place Social

Promotion Cultural

Buyer’s black box

Buyer‘s characteristics

Buyer‘s decision

process

Buyer responses

Buying attitude and

preferences purchase

behaviour: what the

buyer buys, when, where,

and how much Brand and

company relationship

But its very difficult to see inside the

consumers head and figure out the whys of

buying behaviour (That’s why it’s called the

Black Box). Marketers spend lot of time and

money trying to figure out what makes

customer tick.

We can measure the input to consumer

buying decisions- for example, Apple

introduces new iTouch device and features it

in TV ads. And we can often measures the

outputs of consumer buy the new Apple

device at the company’s Web site within a

week of introduction




48

4.3 Characteristics of consumer behaviour:

Consumer purchases are influenced strongly by cultural, social, personal and psychological

characteristics shown in Figure

I. Cultural Factors

Cultural factor exert a broad and deep influence on consumer behaviour. The marketers

need to understand the role played by the buyer‘s culture, subculture, and social class.

a) Culture:

Culture is the most basic cause of a person‘s want and behaviour. Growing up in

society, a child learned basic values, perception, wants, and behaviour from the family andother important institute. A child normally learns or is exposed to the following values:

achievements and success, activity and involvement, efficiency and practicability, progress,

hard work, material comfort, respect for elders, humanitarianism, youthfulness, and fitness

and health. Every group or society has culture, and culture influences on buying behaviour

may vary greatly from country to country. Failure to adjust these differences can result in

ineffective marketing or embarrassing mistakes.

b) Subculture :

Each culture contains smaller subcultures, or groups of people with shared value

systems based on common life experience and situations. Subcultures include nationalities,

religions, racial groups, and geographic regions. Many subcultures make up important

market segments, and markters also design products and marketing program tailored to their

need.

c) Social Class:

Almost every society has some form of social class structure. Social Classes are

society‘s relatively permanent and ordered divisions whose member shares similar values,

interest and behaviour.

Social factor is not determined by a single factor , such as income but is measured as

a combination of occupation , income, education, wealth, and other variables.




49

II. Social Factors:

A consumer‘s behaviour also is influenced by social factors, such as the consumer‘s small

groups, family, and social roles and status.

a) Groups and Social Networks:

Many small groups influence a person‘s behaviour. Groups that have a direct

influence and to which a person belongs are called membership groups. In contrast,

reference groups serve as direct (faceto- face) or indirect points of comparison or reference

in forming a person's attitudes or behaviour. Reference groups to which they do not belong

often influence people. Marketers try to identify the reference groups of their target markets.

Reference groups expose a person to new behaviours and lifestyles, influence the person'sattitudes and self-concept, and create pressures to conform that may affect the person's

product and brand choices.

The importance of group influence varies across products and brands. It tends to be

strongest when the product is visible to others whom the buyer respects. Manufacturers of

products and brands subjected to strong group influence must figure out how to reach

opinion leaders — people within a reference group who, because of special skills, knowledge,

personality, or other characteristics, exert influence on others.

Many marketers try to identify opinion leaders for their products and direct

marketing efforts toward them. In other cases, advertisements can simulate opinion

leadership, thereby reducing the need for consumers to seek advice from others. The

importance of group influence varies across products and brands. It tends to be strongest

when the product is visible to others whom the buyer respects. Purchases of products that

are bought and used privately are not much affected by group influences because neither the product nor the brand will be noticed by others.

b) Family:

Family members can strongly influence buyer behaviour. The family is the most

important consumer buying organization in society, and it has been researched extensively.

Marketers are interested in the roles and influence of the husband, wife, and children on the

purchase of different products and services.




50

Husband-wife involvement varies widely by product category and by stage in the

buying process. Buying roles change with evolving consumer lifestyles.

Such changes suggest that marketers who've typically sold their products to only

women or only men are now courting the opposite sex. For example, with research revealing

that women now account for nearly half of all hardware store purchases, home improvement

retailers such as Home

Depot and Builders Square have turned what once were intimidating warehouses into

female friendly retail outlets. The new Builders Square II outlets feature decorator design

centres at the front of the store. To attract more women, Builders Square runs ads targeting

women in Home, House Beautiful, Woman's Day, and Better Homes and Gardens. Home

Depot even offers bridal registries.

Similarly, after research indicated that women now make up 34 percent of the luxury

car market, Cadillac has started paying more attention to this important segment. Male car

designers at Cadillac are going about their work with paper clips on their fingers to simulate

what it feels like to operate buttons, knobs, and other interior features with longer

fingernails. The Cadillac Catera features an air-conditioned glove box to preserve such items

as lipstick and film. Under the hood, yellow markings highlight where fluid fills go.

Children may also have a strong influence on family buying decisions. For example,

it ran ads to woo these "back-seat consumers" in Sports Illustrated for Kids, which attracts

mostly 8- to 14- year-old boys. "We're kidding ourselves when we think kids aren't aware of

brands," says Venture's brand manager, adding that even she was surprised at how often

parents told her that kids played a tie-breaking role in deciding which car to buy. In the case

of expensive products and services, husbands and wives often make joint decisions.

c) Roles and Status

A person belongs to many groups — family, clubs, organizations. The person's

position in each group can be defined in terms of both role and status. A role consists of the

activities people are expected to perform according to the persons around them. Each role

carries a status reflecting the general esteem given to it by society. People usually choose

products appropriate to their roles and status.




51

III. Personal Factors

A buyer's decisions also are influenced by personal characteristics such as the buyer'sage and lifecycle stage, occupation, economic situation, lifestyle, and personality and self-

concept.

a) Age and Life-Cycle Stage

People change the goods and services they buy over their lifetimes. Tastes in food,

clothes, furniture, and recreation are often age related. Buying is also shaped by the stage of

the family life cycle — the stages through which families might pass as they mature over

time. Marketers often define their target markets in terms of life-cycle stage and develop

appropriate products and marketing plans for each stage. Traditional family life-cycle

stages include young singles and married couples with children.

b) Occupation

A person's occupation affects the goods and services bought. Blue-collar workers

tend to buy more rugged work clothes, whereas white-collar workers buy more business

suits. Marketers try to identify the occupational groups that have an above-average interest

in their products and services. A company can even specialize in making products needed

by a given occupational group. Thus, computer software companies will design different

products for brand managers, accountants, engineers, lawyers, and doctors.

c) Economic Situation

A person's economic situation will affect product choice. Marketers of income-

sensitive goods watch trends in personal income, savings, and interest rates. If economic

indicators point to a recession, marketers can take steps to redesign, reposition, and reprice

their products closely.

d) Lifestyle

People coming from the same subculture, social class, and occupation may have

quite different lifestyles. Life style is a person's pattern of living as expressed in his or her

psychographics. It involves measuring consumers' major AIO dimensions — activities

(work, hobbies, shopping, sports, social events), interests (food, fashion, family,

recreation), and opinions (about themselves, social issues, business, products). Lifestyle




52

captures something more than the person's social class or personality. It profiles a person's

whole pattern of acting and interacting in the world.

Several research firms have developed lifestyle classifications. It divides consumers

into eight groups based on two major dimensions: self-orientation and resources. Self-

orientation groups include principle-oriented consumers who buy based on their views of

the world; status-oriented buyers who base their purchases on the actions and opinions of

others; and action-oriented buyers who are driven by their desire for activity, variety, and

risk taking. Consumers within each orientation are further classified into those with

abundant resources and those with minimal resources, depending on whether they have

high or low levels of income, education, health, self-confidence, energy, and other factors.

Consumers with either very high or very low levels of resources are classified withoutregard to their self-orientations (actualizers, strugglers). Actualizers are people with so

many resources that they can indulge in any or all self-orientations. In contrast, strugglers

are people with too few resources to be included in any consumer orientation.

e) Personality and Self-Concept

Each person's distinct personality influences his or her buying behavior. Personality

refers to the unique psychological characteristics that lead to relatively consistent and

lasting responses to one's own environment. Personality is usually described in terms of

traits such as self-confidence, dominance, sociability, autonomy, defensiveness,

adaptability, and aggressiveness. Personality can be useful in analyzing consumer

behaviour for certain product or brand choices. For example, coffee marketers have

discovered that heavy coffee drinkers tend to be high on sociability. Thus, to attract

customers, Starbucks and other coffeehouses create environments in which people can

relax and socialize over a cup of steaming coffee.

Many marketers use a concept related to personality — a person's self-concept (also

called self-image). The basic self-concept premise is that people's possessions contribute to

and reflect their identities; that is, "we are what we have." Thus, in order to understand

consumer behavior, the marketer must first understand the relationship between consumer

self-concept and possessions. For example, the founder and chief executive of Barnes &

Noble, the nation's leading bookseller, notes that people buy books to support their self-

images




53

IV. Psychological Factors

A person's buying choices are further influenced by four major psychological

factors: motivation, perception, learning, and beliefs and attitudes.

a) Motivation

A person has many needs at any given time. Some are biological, arising from

states of tension such as hunger, thirst, or discomfort. Others are psychological, arising

from the need for recognition, esteem, or belonging. Most of these needs will not be strong

enough to motivate the person to act at a given point in time. A need becomes a motive

when it is aroused to a sufficient level of intensity. A motive (or drive) is a need that is

sufficiently pressing to direct the person to seek satisfaction. Psychologists have developed

theories of human motivation. Two of the most popular — the theories of Sigmund Freud

and Abraham Maslow — have quite different meanings for consumer analysis and

marketing.

Maslow's Theory of Motivation




54

Abraham Maslow sought to explain why people are driven by particular needs at

particular times. Why does one person spend much time and energy on personal safety

and another on gaining the esteem of others? Maslow's answer is that human needs are

arranged in a hierarchy, from the most pressing to the least pressing. Maslow's hierarchy

of needs is shown in Figure. In order of importance, they are physiological needs, safety

needs, social needs, esteem needs, and self-actualization needs. A person tries to satisfy

the most important need first. When that need is satisfied, it will stop being a motivator

and the person will then try to satisfy the next most important need. For example,

starving people (physiological need) will not take an interest in the latest happenings in

the art world (self-actualization needs), nor in how they are seen or esteemed by others

(social or esteem needs), nor even in whether they are breathing clean air (safety needs).

But as each important need is satisfied, the next most important need will come into

play.

b) Perception

A motivated person is ready to act. How the person acts is influenced by his or

her own perception of the situation. All of us learn by the flow of information through

our five senses: sight, hearing, smell, touch, and taste. However, each of us receives,

organizes, and interprets this sensory information in an individual way. Perception is the

process by which people select, organize, and interpret information to form a meaningful

picture of the world.

People can form different perceptions of the same stimulus because of three

perceptual processes: selective attention, selective distortion, and selective retention.

People are exposed to a great amount of stimuli every day. For example, the average

person may be exposed to more than 1,500 ads in a single day. It is impossible for a person to pay attention to all these stimuli. Selective attention — the tendency for people

to screen out most of the information to which they are exposed — means that marketers

have to work especially hard to attract the consumer's attention.

Even noted stimuli do not always come across in the intended way. Each person

fits incoming information into an existing mind-set. Selective distortion describes the

tendency of people to interpret information in a way that will support what they already

believe. Selective distortion means that marketers must try to understand the mind-sets




55

of consumers and how these will affect interpretations of advertising and sales

information.

c) Learning

When people act, they learn. Learning describes changes in an individual's

behaviour arising from experience. Learning theorists say that most human behaviour is

learned. Learning occurs through the interplay of drives, stimuli, cues, responses, and

reinforcement.

d) Beliefs and Attitudes

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

influence their buying behaviour. A belief is a descriptive thought that a person has

about something. Buying behaviour differs greatly for a tube of toothpaste, a tennis

racket, an expensive camera, and a new car. More complex decisions usually involve

more buying participants and more buyer deliberation. Figure shows types of consumer

buying behaviour based on the degree of buyer involvement and the degree of

differences among brands.




56

4.4 Types Buying Behaviours

I. Complex Buying Behaviour

Consumers undertake complex buying behaviour when they are highly involved

in a purchase and perceive significant differences among brands. Consumers may be

highly involved when the product is expensive, risky, purchased infrequently, and highly

self-expressive. Typically, the consumer has much to learn about the product category.

For example, a personal computer buyer may not know what attributes to consider.

Many product features carry no real meaning: a "Pentium Pro chip," "super VGA

resolution," or "megs of RAM." This buyer will pass through a learning process, first

developing beliefs about the product, then attitudes, and then making a thoughtful

purchase choice. Marketers of high-involvement products must understand the

information-gathering and evaluation behaviour of high-involvement consumers. They

need to help buyers learn about product-class attributes and their relative importance,

and about what the company's brand offers on the important attributes. Marketers need

to differentiate their brand's features, perhaps by describing the brand's benefits using

print media with long copy. They must motivate store salespeople and the buyer's

acquaintances to influence the final brand choice.

II. Dissonance-Reducing Buying Behaviour

Dissonance reducing buying behaviour occurs when consumers are highly

involved with an expensive, infrequent, or risky purchase, but see little difference among

brands. For example, consumers buying carpeting may face a high-involvement decision

because carpeting is expensive and self-expressive. Yet buyers may consider most carpet

brands in a given price range to be the same. In this case, because perceived brand

differences are not large, buyers may shop around to learn what is available, but buy

Complex buying

behaviour

Dissonance reducing

buying behaviour

Habitual buying

behaviour

Variety-seeking

buying behaviour

High involvement Low involvement

Significant

differences

between brands

Few differences

between brands




57

relatively quickly. They may respond primarily to a good price or to purchase

convenience.

After the purchase, consumers might experience post purchase dissonance (after-

sale discomfort) when they notice certain disadvantages of the purchased carpet brand or

hear favourable things about brands not purchased. To counter such dissonance, the

marketer's after-sale communications should provide evidence and support to help

consumers feel good about their brand choices.

III. Habitual Buying Behaviour

Habitual buying behaviour occurs under conditions of low consumer

involvement and little significant brand difference. For example, take salt. Consumers

have little involvement in this product category — they simply go to the store and reach

for a brand. If they keep reaching for the same brand, it is out of habit rather than strong

brand loyalty. Consumers appear to have low involvement with most low-cost,

frequently purchased products.

In such cases, consumer behaviour does not pass through the usual belief-

attitude-behaviour sequence. Consumers do not search extensively for information aboutthe brands, evaluate brand characteristics, and make weighty decisions about which

brands to buy. Instead, they passively receive information as they watch television or

read magazines. Ad repetition creates brand familiarity rather than brand conviction.

Consumers do not form strong attitudes toward a brand; they select the brand because it

is familiar. Because they are not highly involved with the product, consumers may not

evaluate the choice even after purchase. Thus, the buying process involves brand

beliefs formed by passive learning, followed by purchase behavior, which may or may

not be followed by evaluation. Because buyers are not highly committed to any brands,

marketers of low-involvement products with few brand differences often use price and

sales promotions to stimulate product trial. In advertising for a low-involvement product,

ad copy should stress only a few key points. Visual symbols and imagery are important

because they can be remembered easily and associated with the brand. Ad campaigns

should include high repetition of short-duration messages. Television is usually more

effective than print media because it is a low-involvement medium suitable for passive

learning. Advertising planning should be based on classical conditioning theory, in

which buyers learn to identify a certain product by a symbol repeatedly attached to it.




58

Marketers can try to convert low-involvement products into higher-involvement

ones by linking them to some involving issue. Procter & Gamble does this when it links

Crest toothpaste to avoiding cavities. At best, these strategies can raise consumer

involvement from a low to a moderate level. However, they are not likely to propel the

consumer into highly involved buying behaviour.

IV. Variety-Seeking Buying Behaviour

Consumers undertake variety seeking buying behaviour in situations

characterized by low consumer involvement but significant perceived brand differences.

In such cases, consumers often do a lot of brand switching. For example, when buying

cookies, a consumer may hold some beliefs, choose a cookie brand without much

evaluation, then evaluate that brand during consumption. But the next time, the

consumer might pick another brand out of boredom or simply to try something different.

Brand switching occurs for the sake of variety rather than because of dissatisfaction.

In such product categories, the marketing strategy may differ for the market

leader and minor brands. The market leader will try to encourage habitual buying

behaviour by dominating shelf space, keeping shelves fully stocked, and running

frequent reminder advertising. Challenger firms will encourage variety seeking by

offering lower prices, special deals, coupons, free samples, and advertising that presents

reasons for trying something new.




59

4.5 Buyer Decision Process

Now that we have looked at the influences that affect buyers, we are ready to

look at how consumers make buying decisions. Figure shows that the buyer decision

process consists of five stages: need recognition, information search, evaluation of alternatives, purchase decision, and post purchase behaviour. Clearly, the buying

process starts long before actual purchase and continues long after.

Marketers need to focus on the entire buying process rather than on just the

purchase decision. The figure implies that consumers pass through all five stages with

every purchase. But in more routine purchases, consumers often skip or reverse some of

these stages. A woman buying her regular brand of toothpaste would recognize the need

and go right to the purchase decision, skipping information search and evaluation.

However, we use the model in Figure because it shows all the considerations that arise

when a consumer faces a new and complex purchase situation.

I. Need Recognition

The buying process starts with need recognition — the buyer recognizes a problem

or need. The buyer senses a difference between his or her actual state and some desired

state. The need can be triggered by internal stimuli when one of the person's normal

needs — hunger, thirst — rises to a level high enough to become a drive. A need can also

be triggered by external stimuli. At this stage, the marketer should research consumers

to find out what kinds of needs or problems arise, what brought them about, and how

they led the consumer to this particular product. By gathering such information, the

marketer can identify the factors that most often trigger interest in the product and can

develop marketing programs that involve these factors.

Need

Reorganisation

Information

search

Evaluation of

alternative

Purchase

decision

Post purchase

behaviour




60

II. Information Search

An aroused consumer may or may not search for more information. If the

consumer's drive is strong and a satisfying product is near at hand, the consumer is likely

to buy it then. If not, the consumer may store the need in memory or undertake an

information search related to the need. At one level, the consumer may simply enter

heightened attention. The consumer can obtain information from any of several sources.

These include personal sources (family, friends, neighbours, acquaintances), commercial

sources (advertising, salespeople, dealers, packaging, displays, Web sites), public

sources (mass media, consumer-rating organizations), and experiential sources

(handling, examining, using the product). The relative influence of these information

sources varies with the product and the buyer. Generally, the consumer receives the mostinformation about a product from commercial sources — those controlled by the

marketer. The most effective sources, however, tend to be personal. Commercial sources

normally inform the buyer, but personal sources legitimize or evaluate products for the

buyer.

People often ask others — friends, relatives, acquaintances, professionals — for

recommendations concerning a product or service. Thus, companies have a strong

interest in building such word-of-mouth sources. These sources have two chief

advantages. First, they are convincing: Word of mouth is the only promotion method that

is of consumers, by consumers, and for consumers. Having loyal, satisfied customers that

brag about doing business with you is the dream of every business owner. Not only are

satisfied customers repeat buyers, but they are also walking, talking billboards for your

business. Second, the costs are low. Keeping in touch with satisfied customers and

turning them into word-of-mouth advocates costs the business relatively little. As more

information is obtained, the consumer's awareness and knowledge of the available

brands and features increases. The information also helped her drop certain brands from

consideration. A company must design its marketing mix to make prospects aware of

and knowledgeable about its brand. It should carefully identify consumers' sources of

information and the importance of each source. Consumers should be asked how they

first heard about the brand, what information they received, and what importance they

placed on different information sources.




61

III. Evaluation of Alternatives

We have seen how the consumer uses information to arrive at a set of final brand

choices. How does the consumer choose among the alternative brands? The marketer

needs to know about alternatives evaluation — that is, how the consumer processes

information to arrive at brand choices. Unfortunately, consumers do not use a simple and

single evaluation process in all buying situations. Instead, several evaluation processes

are at work.

The consumer arrives at attitudes toward different brands through some

evaluation procedure. How consumers go about evaluating purchase alternatives depends

on the individual consumer and the specific buying situation. In some cases, consumers

use careful calculations and logical thinking. At other times, the same consumers do

little or no evaluating; instead they buy on impulse and rely on intuition. Sometimes

consumers make buying decisions on their own; sometimes they turn to friends,

consumer guides, or salespeople for buying advice. Marketers should study buyers to

find out how they actually evaluate brand alternatives. If they know what evaluative

processes go on, marketers can take steps to influence the buyer's decision.

IV. Purchase Decision

In the evaluation stage, the consumer ranks brands and forms purchase

intentions. Generally, the consumer's purchase decision will be to buy the most preferred

brand, but two factors can come between the purchase intention and the purchase

decision. The first factor is the attitudes of others. The second factor is unexpected

situational factors. The consumer may form a purchase intention based on factors such

as expected income, expected price, and expected product benefits. However,

unexpected events may change the purchase intention. Thus, preferences and even

purchase intentions do not always result in actual purchase choice.

V. Post purchase Behaviour

The marketer's job does not end when the product is bought. After purchasing the

product, the consumer will be satisfied or dissatisfied and will engage in post purchase

behaviour of interest to the marketer. What determines whether the buyer is satisfied or dissatisfied with a purchase? The answer lies in the relationship between the consumer's




62

expectations and the product's perceived performance. If the product falls short of

expectations, the consumer is disappointed; if it meets expectations, the consumer is

satisfied; if it exceeds expectations, the consumer is delighted. The larger the gap

between expectations and performance, the greater the consumer's dissatisfaction. This

suggests that sellers should make product claims that faithfully represent the product's

performance so that buyers are satisfied. Some sellers might even understate

performance levels to boost consumer satisfaction with the product. For example,

Boeing's salespeople tend to be conservative when they estimate the potential benefits of

their aircraft. They almost always underestimate fuel efficiency — they promise a 5

percent savings that turns out to be 8 percent. Customers are delighted with better-than-

expected performance; they buy again and tell other potential customers that Boeing

lives up to its promises.

Almost all major purchases result in cognitive dissonance, or discomfort caused

by post purchase conflict. After the purchase, consumers are satisfied with the benefits

of the chosen brand and are glad to avoid the drawbacks of the brands not bought.

However, every purchase involves compromise. Consumers feel uneasy about acquiring

the drawbacks of the chosen brand and about losing the benefits of the brands not

purchased. Thus, consumers feel at least some post purchase dissonance for every purchase.

Why is it so important to satisfy the customer? Such satisfaction is important

because a company's sales come from two basic groups — new customers and retained

customers. It usually costs more to attract new customers than to retain current ones, and

the best way to retain current customers is to keep them satisfied. Customer satisfaction

is a key to making lasting connections with consumers — to keeping and growing

consumers and reaping their customer lifetime value. Satisfied customers buy a product

again, talk favourably to others about the product, pay less attention to competing brands

and advertising, and buy other products from the company. Many marketers go beyond

merely meeting the expectations of customers — they aim to delight the customer. A

delighted customer is even more likely to purchase again and to talk favourably about

the product and company.

A dissatisfied consumer responds differently. Whereas, on average, a satisfiedcustomer tells 3 people about a good product experience, a dissatisfied customer gripes




63

to 11 people. In fact, one study showed that 13 percent of the people who had a problem

with an organization complained about the company to more than 20 people. Clearly,

bad word of mouth travels farther and faster than good word of mouth and can quickly

damage consumer attitudes about a company and its products. Therefore, a company

would be wise to measure customer satisfaction regularly. It cannot simply rely on

dissatisfied customers to volunteer their complaints when they are dissatisfied. Some 96

percent of unhappy customers never tell the company about their problem. Companies

should set up systems that encourage customers to complain. In this way, the company

can learn how well it is doing and how it can improve. The 3M Company claims that

over two-thirds of its new-product ideas come from listening to customer complaints.

But listening is not enough — the company also must respond constructively to the

complaints it receives.

4.6 Participants in buying process:

Roles Activity

Initiators The individual in the organisation who first recognise the need

for service or product.

Influencer The individual who affect the buying decision either directly

or indirectly.

Decider The individual who have authority to decide supplier who will

provide the service or product.

Buyers The individual who will actually make the purchase.

Users The individual within the organisation who will use the

service or product.

Gatekeepers The individual who will control the flow of information into

buyers centre.




64

DATA ANALYSIS

5.1 Analysis on basis of factor analysis

Component 1

Sr.no ―Life cycle Cost‖ HUL

1 Overall cost of cup/

beverage

Prices are more as compared to Nestle & in caseof small low cost producers, like Amazon FHCLetc., it is difficult to complete

2 Ease of operation HUL provides an array of vending machines, for special needs of customer like smart card

operated machine, for educational institute like NIIT, Educomp, etc. These machines can beused to download data for MIS purposes also.These machines also offer convenience of half &full cup.

3 Lower Maintains Can work as a differentiating factor for HUL. Asfeatures like microprocessor controlled Water temperature, inbuilt digital counter, hardwarelock, auto flesh system reduce maintained.Although now most companies follow these

standards.

Component 2

Sr.no Brand Value HUL

1 Consumer Preferences HUL with its strong brand of Taj Mahal in tea enjoyssimilar position, as that of Nestle in coffee market.With recent revamping of its coffee brand BRU,Company is trying to create strong consumer base in

coffee market also.

2 Brand Image HUL with its Lipton & BRU brands in vendingsolution market enjoys limited brand awareness asCompared to nestle & even CCD. Thus this is one of the prime area of improvement for OOH divisions.

3 After Sales Services HUL claims to have a strong after sales support to itscustomer, with its fortnightly audits & expansivedistributor network it provides service to its customers.On market survey it was found that there is enoughroom of improvement for OOH division on this, as thiscan be a strong differentiating factor for company.




65

5.2 Cost comparison of vending machine v/s pantry:

In order to make a valid point in favour of vending machine for cusomers, a

cost benefit analysis has to be done for them, which could actualy show them that how

this offer is more economical to their organizations. A similar cost – benefit analysis isshown below:-

S.N

o

No.of

employees

Overall daily

Consumption

( no.of cups)

Daily

consumption

Of Tea

( no.of cups)

Daily

consumption

Of Coffee

( no.of cups)

Monthly

Cost in

pantry

(Rs.)

Monthly

cost in

Vending

Machine

(Rs.)

Rent

(Rs.)

Total billing

in Vending

Machine

(Rs.)

1. 20-40 60 35 25 12750 4350 800 5150

2. 50-100 170 100 70 36000 12300 800 13100

3. 100-200 300 170 130 64500 21900 0 219004. 200-400 600 350 250 127500 44400 0 44400

5. 500-1000 1000 600 400 210000 72000 0 72000

6. 1500-3000 3500 2000 1500 750000 255000 0 255000

Table 5.1

As clearly shown in the above table, cost benefit for the organizations is

quantified in terms of the no. of employees in the organization, which gives us

approximate daily consumption of the beverages in the company. As most of the

companies & organizations outsource pantry to a third party.

Graph 5.1 Sour ce: from available prices of tea and coffee.

0

100000

200000

300000

400000

500000

600000

700000

800000

C o s t i n R s .

Number of employees

Cost of pantry

Cost of vending

machine




66

5.3 Survey analysis:

1. Strength of employees.

Table 5.2

Graph 5.2 Source: Primary data (Questionnaire).

Interpretation:

We have visited 150 organisations out of which 70 organisation having their

strength 0 to 20. 45 organisation having strength between 20 to 100. 25 organisation with

strength 100 to 300 10 organisation having strength between 300 to 2000.

As 47% organisation having strength 0 to 20 and 30% organisation having strength

21 to 100. These segments have huge market for vending machines in Nasik.

0

10

20

30

40

50

60

70

0-20 21-100 101-300 301-2000

70

45

25

10

N u m b e r o f o r g a n

i s a t i o n i n p e r t i c u l a r r a n g e

Range of employee strenght

strenght of employee In organisation

0-20

21-100

101-300

301-2000

Strength of employee In organization refer for survey

Range of strength 0-20 20-100 100-300 300-2000 Total

No. Of Organization 70 45 25 10 150

Percentage 47% 30% 17% 6% 100




67

2. I ndustr ial occupation / the type of firm

Industrial occupation

Agricultu

re Sector

Manufactu

ring

Retailing service

sector

Bank Hospital Educational Total

18 37 8 40 17 15 15 150

12% 25% 5% 27% 11% 10% 10% 100

Table 5.3


Interpretation:

To study the buying behaviour of customer towards vending machine it is

important to get an idea about the organisation‘s working environment and culture in our

survey we come across 18 Agricultural, 37 Manufacturing, 8 Retailing, 40 Service

sector, 17 Banks, 15 Hospitals, 15 Educational organisations.

According to above segments, for vending machines both Institutional and

Government markets are huge.

12%

25%

5%

27%

11%

10%

10%

Industrial Occupation

Agriculture Sector

Manufacturing

Retailing

service sector

bank

Hospital

Educational




68

3. Daily hot beverages you offering to your staff

Daily hot beverages

Tea only Coffee only Tea and coffee Not offering Total

45 0 95 10 150

30% 0% 63% 7% 100

Table 5.4


Interpretation:

From 150 organisations 30% organisations offers only tea to their employee.

No organisation offers only coffee, 95 organisations offers tea and coffee both and

10 are not offering anything.

Culture and custom can strongly influence business buyer reaction to

marketers behaviour. And in India peoples are less habitual to coffee than tea but

most of the organisation offers Tea and coffee both to their employee.

0

50

100

tea only

coffee onlytea and coffee

Not Offering

45

0

95

10

Beverages

Organisation offer to staff




69

4. The most convenient way to serve the hot beverages

Most convenient way to serve beverages

Vending Machine Boiled tea Outside buying Total

60 50 40 150

40% 33% 27% 100

Table 5.5

Graph 5.5 Sour ce: As per the data got from questionnai re.

Interpretation:

27% organisations take the beverages from outside, while 33% are use to serve the

boiled tea or coffee from own canteen facility and 40% organisations have vending

machine for same purpose.

40% Vending machines user shows that business buyer affected by technological

developments in the environments.

Vending Machine

40%

Boiled tea

33%

Outsode buying

27%

Most convenient way to serve beverages

Vending Machine

Boiled tea

Outsode buying




70

5. Having Vending Machine

Having vending machine

Yes No Total

60 90 150

40% 60% 100

Table 5.6


Interpretation:

From 150 60 are using vending machines while 90 are using other sources.

Business buyers determine which products and services their organisations need to

purchase and then find, evaluate, and choose among alternative suppliers and brand. To

increase the customers of vending machine from 40% B-to-B marketers must do their

best to understand business markets and business buyer behaviour.

Yes

No

0

10

20

30

40

50

60

70

80

90

60

90

Vending Machine

Yes

No




71

6. The provider of vending machine and premix

Table 5.7

Graph 5.7 Source: As per the data got from questionnai re.

Interpretation:

There are 33% clients for Nestlé‘s vending machine while 34% Clients of Premix

of Nestle.50% clients of HUL for both vending machines and premix. But Instta have

5% clients of vending machines and 10% clients of premix. Also in case of Good

morning they have 9% clients of vending machines and 3% clients of premix.

Customer has different type of machine & they also use different companies

premix.

34%

50%

3%

10%

3%

33%

50%

3%

5%

9%

0%

10%

20%

30%

40%

50%

60%

nestle Lipton CCD Instta Good

morning

P e r c e n t a g

e o f h a v i n g p e r t i c u l a r b r a n d

Brands

Vending machines and premix in market

Premix

Vending Machine

vending machine and premix provider

Nestle Lipton CCD Instta Goodmorning

Premix 34% 50% 3% 10% 3%

Vending Machine 33% 50% 3% 5% 9%




72

7. Brands of Vending Machine you are aware of

Brand do you aware about

Nestle Lipton CCD Instta Good Moring Total

60 65 10 10 5 150

40% 43% 7% 7% 3% 100

Table 5.8


Interpretation:

As it is important to create awareness of brand to increase the market accordingto survey 60 institutes or company are aware about Nestlé‘s vending services, 65 are

aware about Lipton, 10 are aware about CCD and Instta each, 5 aware about Good

morning.

HUL is successful to create awareness about Lipton vending machine in Nasik as

compare to others.

0

10

20

30

40

50

60

70

nestle lipton ccd Instta G.M

60

65

10 10

5

Awareness of Brands

nestle

lipton

ccd

Instta

G.M




73

8. Customer conscious about brand

Conscious about brand

Yes No Total

94 56 150

63% 37% 100%

Table 5.9


Interpretation:

94 i.e 63% business buyers are Brand conscious and 56 i.e 37% business buyers

are not brand conscious.

Brand are more than just names and symbols Brand represents consumer‘s

perception and feelings about a product and its performance. It is said that Products are

created in factory but brands are created in mind.

63%

37%

Consious about brand

yes

no




74

9. Factors due to which customers don’t like to prefer Vending Machine

Factors due to which customers don‘t like to prefer Vending Machine

Taste Quality Maintenance Price Total

60 25 5 0 90

67% 28% 5% 0% 100

Table 5.10


Interpretation:

60 buyers are not using machine tea because they are not satisfied with taste of tea

from vending machine, 25 refuse to take machine tea or coffee because of Quality of tea

and coffee and 5 are not using vending machines due to maintenance problem.

Though there is technical development and buyer has capacity to pay some of the

buyers not using machine tea because they are not satisfied with taste of beverages.

0

10

20

30

40

50

60

60

25

5

0

Factors due to which customers don’t like to prefer

Vending Machine

Taste

Quality

Mantenance

Price




75

10. Purchasing of Vending Machine

purchasing vending machine

Outright

purchase

Free On rent Total

30 10 20 60

50% 17% 33% 100

Table 5.11


Interpretation:

From 60, 30 are using machine with outright purchase, 10 are using free

machines, and 20 are using vending machines on rent.

HUL is providing free machines to their customer where intake of tea and coffee

is large. And some retailers are using machine on rent for business purpose.

Outright

Purchase

50%

free

17%

on rent

33%

purchasing vending machine

Outright Purchase

free

on rent




76

11. View of customers about “Advertisements create more awareness of vending

service”

Advertisement creates more awareness about vending machine

Agree Disagree Total

100 50 150

67% 33% 100

Table 5.12


Interpretation:

67% of customers agreed that advertisements are important to create awareness

about vending machines. While 33% are not agreed with advertisements are very

important.

Thought HUL has good awareness in market of Lipton vending machines

advertisements are important to create brand value in customers mind

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

67%

33%

Advertisement creates more awareness about vending

machine

Disagree

Agree




77

12. Do you have any other Vending Machine before Purchase new Vending

Machine

Other Brand's vending machines before current Vending Machine

Yes No Total

20 40 60

33% 67% 100

Table 5.13


Interpretation:

20 customers of vending machine was using other brand‘s vending machine and

their service and 40 customers are loyal to one brand only.

67% customers are satisfied with their vending machine provider and service

given by their provider. 67% customers are loyal customer to their brand.

HUL need to focus on new customers in market.

0 10 20 30 40

20

40

Have other Brand's vending machine before current vending

machines

No

Yes




78

13. The reasons for purchasing new vending machines

Reason to switch on the brand of V.M

Old out of

function

To change the taste Price To try new Total

10 25 12 13 60

17% 42% 20% 21% 100

Table 5.14


Interpretation:

42% of customers change their provider and brand of vending machine to change

the taste 21% customers are not happy with current vending services so they want to try

new vending services 20% customers change their vending services because of

fluctuation in prices of vending machines. And 17% customers faced the problem with

functioning of vending machine.

Customers always need some change in taste; they want to try different things and

different flavours.

0%

20%

40%

60%

80%

100%

42%

21%

20%

17%

Reasons to switch on the brand of V.M

Old out of function

Price

To try new service

To change the taste




79

14. Rate the factors you consider while purchasing a Vending Machine

Factors consider for purchasing

Price Quality Taste Function After sales

service

Brand Ingredients

Not important at all 18 0 0 18 0 23 30

Not much important 38 0 0 20 0 53 35

Important 57 30 55 60 10 60 45

Very important 37 120 95 52 140 14 40

Weight average method 103.2 142.2 136.2 111.5 147.5 91.25 98.75

Rank 4 2 3 5 1 7 6

Table 5.15


Interpretation:

57 customers are saying that price is considering factor for purchasing new

vending machine.120 are saying that quality is very important, for 95 customers taste is

important, and 140 are saying that after sales service is more important for them, 60 are

more conscious about brand.

As per the survey it has been seen that customer are giving more preference to the

after sales service, therefore, the service providers task is to make the service tangible in

one or more ways and to send the right signals about quality.

0

20

40

60

80

100

120

140

18

0 0

18

0

2330

38

0 0

20

0

53

35

57

30

5560

10

60

4537

120

95

52

140

14

40

not important at all

not much important

important

very important




80

15. Rate the following schemes that attract you most.

Scheme attracts more

Free machine Free service Total

40 20 60

67% 33% 100

Table 5.16


Interpretation:

67% customers are more attracted towards the scheme of free machines and 33%

customers are more attracted towards scheme of vending machines with free service.

HUL is providing scheme of vending machines to the organisations where daily

intake of beverages in high.

free machine

67%

Free Service

33%

Scheme attracts more

free machine

Free Service




81

16. If someone in your reference group and wants to purchase a new Vending

machine, would you suggest your company’s brands

Suggest other to take a brand you are using

Yes No Total

50 10 60

83% 17% 100

Table 5.17


Interpretation:

50 customers would like to suggest other to take the brand they are using. And

10 would not like to suggest others to take the same brand.

Interpersonal factors and individual factors plays important role to influence the

buyer

0%

20%

40%

60%

80%

100%

83%

17%

Suggest other to take a brand you are using

No

Yes




82

5.4 SWOT Analysis:

Strengths:

Strong and well differentiated

brand with leading share position.

Strong R&D capability.

Integrated and efficient supply

chain.

Attractive design and distinctive

features of machine.

Good market response.

Wide range of tea and coffee

premix are provided.

Good quality management.

Weaknesses:

Much higher Machine prices as

compare to other brands.

Revenue is low during off-

season.

Tea and coffee are less prefer in

the summers.

Complex supply chain

configuration.

People complaints about health

problem due to machine tea.

Opportunities:

Market growth through increasing

penetration in the anventured

industrial area.

Changing lifestyles increase the

opportunity to increase the

market.

Growing consumption in out of

home category.

Developing technology to more products that provides Nutrition,

Health and wellness.

Hosting the different games,

functions will influence the

development of vending operators

to fill the gap in the market.

Threats:

Other competitors like Nestle,

CCD.

Comparative prices of Lipton

are higher than other

competitors.

Consumption of product varies

according to seasonality.




83

FINDINGS

1. Customers are more attracted towards the promotional schemes provided by company, in

HUL promotional strategies for vending machines are not good.

2. This business is mostly focus on industrial area, but now there is large scope for this

business in institutes and hospitals, malls, bus stands etc.

3. Lipton tea and coffee are more hygienic and better taste than other vending machines.

4. Most of the customers are ready to installed vending machines which will be freely

installed.

5. It is found that distributors are demanding more margins from company.

6. Small customers expect regular maintenance as given to big institutional buyer.

7. It is found that many new customers are interested in buying vending machines and

premix.

8. It is found that there is no proper available stock in godowns for most preferable flavour

of premix.




84

CONCLUSION

According to collected data through this survey we get an idea about consumer

preference and buying behaviour of the consumer. In survey it is found that most of the

consumers prefer the boiled tea than machine tea, but machine tea is more hygienic than

boiled tea and coffee from out of Home.

Many companies in Nasik now changing their minds toward the vending

machine to serve the daily hot beverages to their employee, because of low costing and

hygienic.

The study concludes that the HUL has to strengthen its product line by

introducing new flavours in new sizes. It has to increase its stock holding capacity and

availability of premix.




85

SUGGESTIONS

Following are some suggestions that can be implemented to increase the customer

satisfaction and profitability of the company Hindustan Unilever Lmt.

1. Lipton has to improve their after sales service to give more satisfaction to

their customers.

2. Some companies wants to change their machines due to some technical

problems but the prices of Lipton are higher than other brands and Local

brands.

3. Company should improve the distribution channel management.

4. Different kinds of offer provide by the company where more convenient that

the customer will able to access that offer.

5. The company should launch the new innovative schemes or premix so that

customer get attracts and will keep machine and premix.

6. The company should collect the proper feedback from customer to know their

preferences and satisfaction level.




86

CONSUMER PREFERENCES AND BUYING BEHAVIOUR OF CUSTOMER TOWARDS

VENDING MACHINE OF HUL.

Name Of Company:

Add:

Contact No. :

Total Employees:

1. Strength of employees.

a. 0 to 20 [ ]

b. 20 to 100 [ ]

c. 100 to 300 [ ]

d. 300 to 2000 [ ]

2. I ndustr ial occupation / the type of firm

a. Primary (farming, forestry, fishing quarrying etc) [ ]

b. Manufacturing [ ]

c. Retailing and distribution [ ]

d. Service industries [ ]

e. Public service [ ]

f. Armed forces [ ]

g. Education

h. Professions (doctors, dentists, architects etc) [ ]

i. Others

3. What you offering to your staff for daily hot beverages ?

a. Tea only [ ]

b.

Coffee only [ ]c. Tea & coffee both [ ]

d. Not applicable [ ]

4. Total number of cups / day?

__________________

5. Source of beverages ?

a. Own canteen [ ]

b. Procurement from outside [ ]

c. Any other arrangement________________




87

6. What will be the most convenient way to serve the hot beverages?

a. Vending machine [ ]

b. Boiled tea [ ]

c. Outside buying [ ]

7. If boiled tea do you know about vending services ?

a. Yes [ ]

b. No [ ]

8. If yes which brands of Vending Machine are you aware of?

a. HUL [ ]

b. Nestle [ ]

c. Other___________________________

9. Is the customer conscious about brand?

a. Yes [ ]

b. No [ ]

10. Do you have your own Vending Machine?

a. Yes [ ]

b. No [ ]

11. If yes, machine who is the provider?

a. HUL [ ]

b. Nescafe [ ]

c. Other____________________

12. If no, why don’t you prefer machine tea?

a. Don‘t know about it [ ]

b. Taste [ ]

c. Maintains [ ]

d. Costing [ ]e. Quality [ ]

f. Bad after sale service [ ]

g. Never used before [ ]

13. How do you purchase Vending Machine?

a. On Sold [ ]

b. On Rent [ ]

c. Free [ ]




88

14. Do you have any other Vending Machine before Purchase new Vending Machinea. Yes [ ]

b. No [ ]

If yes, then reason for purchasing new one,

(i) Old Vending Machine out of function/problematic [ ]

(ii) Better & Modern Vending Machine available [ ]

(iii) Capacity of old Vending Machine is not sufficient [ ]

(iv) Any other_________________________________

15. Who is decision maker for purchasing Vending Machine in your firm?

a. higher managerial [ ]

b. intermediate managerial [ ]

c. Supervisory [ ]

16. View of customers about “Advertisements create more awareness of vending service”:

a. Yes [ ]

b. No [ ]

17. Rate the factors you consider while purchasing a Vending Machine?

1 2 3 4 5

a. Price

b.

Quality

c. Taste

d. Functions / Features Offered

e. After-sale service

f. Brand

g. Ingredients of premix

18. Who influenced you while purchasing the Vending Machine?

a. Friends (Word of mouth) [ ]

b. Employee [ ]

c. Media(Advertisement) [ ]

d. By internet [ ]




89

19. Which premix tastes do you like most?

a. Nestle [ ]

b. Lipton [ ]

c. Other____________________

20. How you rate your vending services?

a. Poor [ ]

b. Average [ ]

c. Good [ ]

d. Excellent [ ]

21. Do you intent to buy Vending Machine in near future with new features?

a. Yes [ ]

b. No [ ]

22. What features would you like to have in your Vending Machine?

Specify_______________________________________________________________

________________________________________________

23. When did you purchase/would like to purchase Vending Machine?

a. When promotional schemes are open [ ]

b. irresponsive of promotional schemes [ ]

24. Rate the following schemes that attract you most.

a. New Machine

b. Free Machine

c. Free premix

25. If someone in your reference group and wants to purchase a new Vending

machine, would you suggest your company’s brands?

a. Yes [ ] b. No [ ]

If No, then why: ________________________________

26. Your suggestion for improvement in the existing services ?

_____________________________________________________________________

_____________________________________________________________________

__________________________________________________________________




BIBLIOGRAPHY

List of books.

1. Principles of Marketing-13th edition by Philip Kotler, Gary Armstrong,Prafulla Y.

Agnihotri, Ehsan ul Haque

2. Research Methodology Methods & techniques-2nd

edition by C.R. Kothari

3. Marketing Managemen-13th edition t by Kotler, keller, Koshy, Jha.

List of Journals

1. Indian journal of Marketing

Volume 41 Number 5 May 2011

4. Indian journal of Marketing

Volume 42 Number 1 Jan 2012

5. Focus

Websites

1. www.unilever.com

2. www.wikipedia.org/wiki/Lipton

3. www.lipton.com

4. www.coffeevendingmachines.in/beverage-vending-machines.html

http://www.lipton.com/



report truconsumer preferences and buying behaviour of customer towards vending machine of hulpti1...

Documents