contents

1.0 Introduction 9

2.0 Industry Profile 12

3.0 Company Profile 15

4.0 Need for the Study 27

5.0 Concepts of Retailing 34

6.0 Data Analysis 39

7.0 Findings 50

8.0Annexure

Questionnaire 53

Bibliography 54
 CHAPTER-1
INTRODUCTION
CONSUMER:
A Customer is someone who makes use of or receives the products or
services of an individual or organisation. The word customer historically
derives from custom, meaning habit, a customer was someone who
frequented a particular shop, who made it a habit to purchase goods there, and
with whom the shopkeeper had to maintain a relationship to keep his or her
custom, meaning expected purchases in the future.

CONSUMER SATISFACTION:

Customer satisfaction refers to the emotional response that people feel

after making a purchase from a company. The more positive the level of
customer satisfaction, the more likely the purchaser is to come back and buy
again and to recommend that company to others who are looking for what the
seller has to offer. Word of mouth and referrals are often the most promising
ways for a business to grow.

DEFINITION :-
It is a measure of how products and services supplied by a company meet or
surpass customer expectation. Customer satisfaction is defined as the
number of customers, or percentage of total customers, whose reported
experience with a firm, its products, or its services (ratings) exceeds specified
satisfaction.

Therefore, it is essential for businesses to effectively manage customer

satisfaction. To be able do this, firms need reliable and representative measures
of satisfaction

"Customer satisfaction provides a leading indicator of

consumer purchase intentions and loyalty."Customer satisfaction data are
among the most frequently collected indicators of market perceptions. Their
principal use is twofold:"
Here are the top six reasons why customer satisfaction is so important
Its a leading indicator of consumer repurchase intentions and loyalty
Its a point of differentiation
It reduces customer churn
It increases customer lifetime value
It reduces negative word of mouth
Its cheaper to retain customers than acquire new ones
 CHAPTER-2
INDUSTRY PROFILE
 INDUSTRY PROFILE:

FMCG goods are referred to as fast moving, quite simply, because they are
the quickest items to leave the supermarket shelves. They also tend to be the
high volume, low cost items.

Fast moving consumer goods (FMCG) is the fourth largest sector in the Indian
economy. The over all FMCG market is expected to increase at a compound
annual growth(CAGR).

DEFINITION:
Fast-moving consumer goods (FMCG) or consumer packaged
goods(CPG) are products that are sold quickly and at relatively low
cost. Examples include non-durable goods such as soft drinks,
toiletries, over-the-counter drugs, toys, processed foods and many
other consumables.
Though the absolute profit made on FMCG products is relatively
small, they generally sell in large quantities, so the cumulative profit
on such products can be substantial.
WHAT IS THE FMCG INDUSTRY:
Resilient, rewarding and really, really fast
FMCG industry is also known as the Consumer Packaged Goods or CPG
Industry, this multi-million dollar sector is made up of a huge range of famous
brand names the kind that we use every single day.

These fast moving consumer goods are the essential items we purchase when
we go shopping and use in our everyday lives. They are the household items
you pick up when you are buying groceries or visit your local chemist or
pharmacy.

FMCG goods are referred to as fast moving, quite simply, because they are
the quickest items to leave the supermarket shelves. They also tend to be the
high volume, low cost items.

Cleaning and laundry products, over the counter medicines, personal care items
and food stuffs make up a large bulk of the goods in the FMCG arena, but it
does not end there. Paper products, Pharmaceuticals, consumer electronics,
plastic goods, printing and stationery, alcoholic drinks, tobacco and Cigarettes
can all be considered fast moving consumerable goods too.
 CHAPTER-3
COMPANY PROFILE
 Sanjiv Mehta
COMPANY PROFILE:
HUL was established on october17,1933 as Lever Brothers and, in 1956,
became known as Hindustan Lever Limited, as a result of a merger
between Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders
Ltd. It is headquartered in Mumbai, India and employs over 16,000 workers,
whilst also indirectly helping to facilitate the employment of over 65,000
people. The company was renamed in June 2007 as "Hindustan Unilever
Limited".

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

Goods Company with a heritage of over 80 years in India and touches the lives
of two out of three Indians.

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.

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.
The "most trusted brands" from HUL in the top 100 list (their rankings in
brackets) are: Lux (6), Surf Excel (7), Clinic Plus (8), Rin (13), Lifebuoy (15),
Close up (21), Pond's (22), Pepsodent (24), Fair & Lovely (29), Dove (30),
Sunsilk (34), Vim (48), Wheel (67), Vaseline (70),Pears (78), Lakme (91).

The latest launches for Hindustan Unilever include: Knorr Chinese Noodles,
Schezwan and Hot & Spicy, Lakme Absolute Sculpt Range, Lakme Lip Love,
Magnum Choco Cappuccino and Axe Gold Temptation.
Its brands include:
 Active wheel 3Roses Annapurna

Aviance Axe Breeze international

Brooke bond3 roses Bru Brylcreem

 Cif Clear Clinic plus

Close up Comfort Cornetto

Domex Dove Ellei8

Fair& Lovely Indulekha bringha oil Hamam

Kissan Knorr Kwality walls

Lakme Ayush therapy Lifebuoy

 Lipton Lux Liril

Magnum Pears Ponds

Rexona Sunlight Rin

 Pure it V sure Surf excel

Vaseline Vim Tresemme

Toni&guy Tigi Taj mahal

HEAD QUARTERS OF HUL:

HUL PORTFOLIO:
 CHAPTER-4
NEED FOR STUDY
 OBJECTIVES OF THE STUDY

Primary objective:

To determine the consumer satisfaction towards HUL products.

To analyse the customers requirement.
To study the competitors service attitude to customers.
To find out the strengths and weaknesses of HUL products.
To know the opinion and suggestions of customers.

Secondary objective:

To study about the consideration set of alternatives during the

satisfaction of the customer.
To identify the external forces influencing the satisfaction.
 RESEARCH METHODOLOGY

The project consisted of analysis of performance of the several consumer

durable brands .In this particular project fundamental research was also carries
out which attempted to explore knowledge through methods like personal
interaction with the customer. The required information for the project was
gathered through the following ways.

The research methodology is used to analyse the project is mainly based on

survey method and this survey was conducted for knowing about awareness,
preference and satisfaction of HUL products through questionnaires and it also
include direct contact with consumer. For survey sample size was taken from
different location of Kurnool. So the total number of sample is 100.

Research design: A research design is purely and simply the work or plan for a
study that guides the collection and analyses of the data. We have chosen
descriptive research design for study.

The researcher specifically pinpoints that to carry out the research properly.

How the data to be collected?

Which instruments for data collection would be used?
What sampling plan would be used?

Research instrument: contacting the customer through personally and studying

the responds. The questionnaire was field up, related to usages of particular
branded products. For the collection of primary data a structured questionnaire
was prepared covering various aspects of the study. The questionnaire contains
close-ended and dichotomus question.

Research approach: Sample survey method.

Sampling:
Sample unit: Individual is different occupation of different group were taken
into account because all they come under the segment of potential customer.

Sample design: Random sampling.

Sampling size: Sampling size is the number of people being surveyed. In my

research, 100 consumers are my sample size.

DATA COLLECTION INSTRUMENTS: Questionnaire method.

Data analysis technique:
The data analyses instruments used for conducting the research stastical tools.

Bar chart.

Pie chart.
 LIMITATIONS OF STUDY:

Although all efforts have been taken to make the results of survey as accurate as
possible but the survey suffers from the following limitations.

The sample size is restricted to 100 respondents only.

Due to certain constraints, the survey is limited to the Kurnool city.
The time period of study was very less so it was not possible to cover all
the areas and make analysis.
The survey cannot be generalised to rural areas.
Some respondents left some of the questions unanswered either due to
inability to put a strain on mind or they did not know answer.
Some respondents did not provide the requisite information pertaining to
the question.

`
 CHAPTER-5
CONCEPTS OF CONSUMER
SATISFACTION
 Theoretical Background of Consumer Satisfaction

It is no longer enough to satisfy consumers. You must delight them.

Satisfaction
Satisfaction is a person feeling of pleasure or disappointment resulting from
comparing the products received performance is or (outcome) in relation to his
or her expectations.

As this definition makes clear satisfaction is a function of received performance

and expectations. With the performance falls sharp expectations, the customer is
dissatisfied. If the performance exceeds expectations, the customer is highly
satisfied or delighted.

Mini companies are aiming for high satifactioons because customers who are
just satisfied still find it easy to switch when a better offer comes along. Those
who are highly satisfied are much less ready to switch.

High satisfactions are delights create an emotional brand. Not just rational
performance the result in high customer loyalty Xeroxes senior managers
believes that a very satisfied or delighted customer is worth tenth times as much
to the company as a satisfied customer. A very satisfied customer is likely to
stay with Xerox many more years and buy more than a satisfied customer.

A customers decision to be loyal or to defect is the some of many small

encounters with the company. Consulting from forum corporation says that in
order for all this small encounters to add up to customers loyalty, companies
need to create a branded customer experience in addition to customer value
expectations and satisfactions companies need to monitor their competitors
performance in this areas. For example a company was pleased to find 80% of
his customers said they were satisfied.

Then the CEO found out that its leading competitors attended a 90% customer
satisfaction score. He was further dismayed when he learned that this
competitor was aiming to reach a 95% satisfaction score.

Although the customer centered firm seeks to create high customer satisfaction,
its main goal is not to maximize customer satisfaction by lowering its prices or
increasing its services, the result may be lower profits. The company might be
able to increase its profitability by means other than increased satisfaction (for
example, by improving manufacturing processes are investing more in R & B),
also the company has many stake holders, including employers, dealers,
suppliers and stock holders. Spending more to increase customer satisfaction
might divert funds from increasing the satisfaction of other partners. Ultimately
the company must operate on philosophy that it is trying to deliver faction to
other stake holders within the constraints of its total resources.

Defining consumer satisfaction:

Over 35 years above PETER DRUCKER observed that a companys first task is
to create customers. But todays customers face a vast vary of product and
brand choices, prices and suppliers.

The key to customer retention is customer satisfaction. A highly satisfied

customer:

Stay loyal longer.

Buys more as the company introduces new products and upgrade existing
products.
Talks favourably about the company and its products.
Pays less attention to competing brands and advertising and is less
sensitive to price.
Offers products or services and ideas to the company.
Costs less to serve than new customers because transactions are
routinized.

Thus a company would be wise to measure customer satisfaction regularly. The

Company could phone resent buyers and inquire how many are highly satisfied,
indifferent and dissatisfied.

Consumer Satisfaction:
Today in the consumer driven economy, all firms are engaged in a rat race to
attract customers and build a long term relationship with their loyal relationship.
The key to customers loyalty is through customer satisfaction.
A satisfied customer will act as a spoke person of the companys product, and
bring in more buyers. There is the pareto principle or the 80/20 rules; it says
80% of one thing comes from 20% of another. That is to say a small percentage
of loyal customers will lend a large weight to the companys sales.

So marketers have to ensure customers value satisfaction. For this they have to
ensure:

Products are developed to meet consumer requirements.

Brands are positioned so as to convey distinctiveness.
Communications are used to convey to customer to experience that goes
on using a value added product.
Delivery to reinforce the promptness in making available to the
consumers a value added product.
Relationships are build to offer life time customer value to enable the
consumer to experience value satisfaction.

Here are the top six reasons why customer satisfaction is so

important:

1. Its a leading indicator of consumer repurchase

intentions and loyalty

Customer satisfaction is the best indicator of how likely a customer will make a
purchase in the future. Asking customers to rate their satisfaction on a scale of
1-10 is a good way to see if they will become repeat customers or even
advocates.

Any customers that give you a rating of 7 and above, can be considered
satisfied, and you can safely expect them to come back and make repeat
purchases. Customers who give you a rating of 9 or 10 are your
potential customer advocates who you can leverage to become evangelists for
your company.
2. Its a point of differentiation:

In a competitive marketplace where businesses compete for customers;

customer satisfaction is seen as a key differentiator. Businesses who succeed in
these cut-throat environments are the ones that make customer satisfaction a key
element of their business strategy.

3. It reduces customer churn:

An Accenture global customer satisfaction report (2008) found that price is not
the main reason for customer churn; it is actually due to the overall poor quality
of customer service.

Customer satisfaction is the metric you can use to reduce customer churn. By
measuring and tracking customer satisfaction you can put new processes in
place to increase the overall quality of your customer service.

I recommend you put an emphasis on exceeding customer expectations and

wowing customers at every opportunity. Do that for six months, than measure
customer satisfaction again. See whether your new initiatives have had a
positive or negative impact on satisfaction.

4. It increases customer lifetime value:

A study by InfoQuest found that a totally satisfied customer contributes 2.6

times more revenue than a somewhat satisfied customer. Furthermore, a
totally satisfied customer contributes 14 times more revenue than a somewhat
dissatisfied customer.

Satisfaction plays a significant role in how much revenue a customer generates

for your business.

Successful businesses understand the importance of customer lifetime value

(CLV). If you increase CLV, you increase the returns on your marketing dollar.
5. It reduces negative word of mouth:

McKinsey found that an unhappy customer tells between 9-15 people about
their experience. In fact, 13% of unhappy customers tell over 20 people about
their experience.

Thats a lot of negative word of mouth.

How much will that affect your business and its reputation in your industry?

Customer satisfaction is tightly linked to revenue and repeat purchases. What

often gets forgotten is how customer satisfaction negatively impacts your
business. Its one thing to lose a customer because they were unhappy. Its
another thing completely to lose 20 customers because of some bad word of
mouth.

To eliminate bad word of mouth you need to measure customer satisfaction on

an ongoing basis. Tracking changes in satisfaction will help you identify if
customers are actually happy with your product or service.

6. Its cheaper to retain customers than acquire new ones:

This is probably the most publicized customer satisfaction statistic out there. It
costs six to seven times more to acquire new customers than it does to retain
existing customers.

If that stat does not strike accord with you then theres not much else I can do to
demonstrate why customer satisfaction is important.

Customers cost a lot of money to acquire. You and your marketing team spend
thousands of dollars getting the attention of prospects, nurturing them into leads
and closing them into sales.
 CHAPTER-6
DATA ANALYSIS &
INTERPRETATION
 1. Table showing the brand awareness

YES NO

100 0
(100%) (0%)

PIE DIAGRAM SHOWING BRAND

AWARENESS
0

yes
no

100

INFERENCE:
From the above pie chart it can be inferred that all the consumers are 100%
aware of the brand hul.
2. Which brand you generally use?

BRANDS % OF RESPONDENTS
HUL 70%
ITC 20%
nestle 6%
Others 4%

No.of respondents
70%
70%
60%
50%
40%
No.of respondents
30% 20%
20%
6% 4%
10%
0%
Hul ITC nestle others

INFERENCE:
From the above pie chart it can be inferred that all the consumers are 70% use
the brand hul.
3.Do you think hul brand is?

BRANDS % OF RESPONDENTS
TOP 90%
MIDDLE 30%
LAST 20%
Others 10%

OTHERS 10

LAST 20

Series1
MIDDLE 30

TOP 90

0 20 40 60 80 100

INFERENCE:
From the above pie chart it can be inferred that HUL brand is 90% at the top.
4. Does your product satisfy your needs?

BRANDS % OF RESPONDENTS
YES 95%
DEFINITELY 80%
NOT SURE 30%
NO 10%

95
100
90 80
80
70
60
50 Series1
40 30
30
20 10
10
0
1.YES 2.DEFINITELY 3.NOTSURE 4.NO

INFERENCE:
From the above pie chart it can be inferred that HUL brand satisfy the needs of
the customer.
5. If you go for repurchase of your product, will you prefer going for the same
product?

BRANDS % OF RESPONDENTS
YES 90%
DEFINITELY 95%
NOT SURE 80%
NO 20%

100
95
90 90
80 80
70
60
50
Series1
40
30
20 20
10
0
0 1 2 3 4 5

INFERENCE:
From the above pie chart it can be inferred that HUL brand will repurchase by
the customer.
 6. Which product of HUL you use more?

BRANDS % OF RESPONDENTS
HOMECARE 95%
FOODBRANDS 90%
PERSONAL BRANDS 80%
BEVERAGES 20%

80
4.BEVERAGES

85
3.PERSONAL BRANDS

Series2
90 Series1
2.FOODBRANDS

95
1. HOMECARE

70 75 80 85 90 95 100

INFERENCE:
From the above pie chart it can be inferred that in HUL brand the customer use
more homecare brands.
7. Do you find it is easily available in the market

BRANDS % OF RESPONDENTS
YES 95%
DEFINITELY 90%
NOT SURE 80%
NO 10%

95
100 90
90 80
80
70
60
50
40 Series1
30
20 10
10
0

INFERENCE:
From the above pie chart it can be inferred that in HUL brand is easily
available in market
8. Why did you like the brand most?

BRANDS % OF RESPONDENTS
Sensitive to skin 50%
Fragrance 70%
Fresh 80%
Good 90%

90
90 80
80 70
70
60 50
50
Series1
40
Series2
30
20
10
0
1. Sensitive 2. Fragrance 3. Fresh 4.GOOD
to Skin

INFERENCE:
From the above pie chart it can be inferred that in HUL brand is liked by so
many customers.
9. How you Know these Product?

BRANDS % OF RESPONDENTS
Advertisement 80%
Mouth publicty 90%
Reference Group 70%
NEWS PAPER 78%

90
80
70
60
50
40 Series1
30
20
10
0
PAP
1.Advertisement
2. Mouth Publicity
3. Reference Group
4.NEWS PAPER

INFERENCE:
From the above pie chart it can be inferred that HUL brand is popularly known
by mouth publicity.
10. Will you recommend HUL brand to others?

BRANDS % OF RESPONDENTS
YES 95%
DEFINITELY 90%
NOT SURE 80%
NO 10%

1.YES
2.DEFINITELY
3.NOT SURE
4.NO

INFERENCE:
From the above pie chart it can be inferred that HUL brand will recommend by
the customers to others.
CHAPTER-7
FINDING
 SUGGESTIONS/RECOMMENDATIONS

It is recommended that the HUL should focus more on the utility of

the products while promoting in the rural areas. The life-style of these
people is different from those in the urban areas.
These people want value for their money, so they want the promotions
to be more informative rather being more glamorous.
The value-for-money means that people will definitely buy, but they
will buy only that product which suits their needs.
If once they purchase a wrong product they will never purchase it again.
This word-of-mouth may spread across and company might loss in the
long run

The HUL should provide full information in the rural promotions starting
for the need, utility, availability, price and the pack sizes available. It is
recommended that the pack sizes should be small and the pricing should
be done in coinage system example: Re.1, Rs.2, Rs.5, Rs.10 etc. This
increases the affordability among the rural consumers.

As per collected data it can be said that, 95% of rural respondents are
using television as their main source of information. So H.U.L. should
focus more on television advertisement.

There is no doubt that high price products, have high customer

involvement and lead towards the high product satisfaction with brand
loyalty.

But here H.U.L. being F.M.C.G. company, it should be ensured that

customers have repetitive purchase which may turn them in loyal
customers and to ensure the loyalty, the blending of 4ps should be
devised considering the specific needs, wants, perceived performance and
various products attributes for the rural consumers. As per collected data,
Annexure -1 Table-3, majority 93% of the rural.
CHAPTER-8
CONCLUSION
 CONCLUSION
In recent years, the FMCG sector declined due to down trading. Also
because of presence of large number of companies trying to seize this
opportunity, this force the old HUL for the change and thus, their
transformation has resulted in a new HUL, which has successfully faced
this challenge and reversed this trend.
It has done so by substantially strengthening their brands and building
capabilities.
This has already begun to yield benefits and they are returning to growth.
Volume growth is being followed by value growth, which in turn is
bringing profit growth.
India is one of the most exciting markets offering great potential. Over
the next10 years, the per capita income in India is likely to double.
In FMCG, there is an opportunity to catalyze penetration, increase
usage, and upgrade consumers.
As a result, the FMCG market is expected to grow to over Rs.100,000
crores from its current base of Rs.40,000 crores.
The new Hindustan Lever see an exciting opportunity for growth.
They have 35 powerful brands covering all segments, with leading
market positions in most.
Today, these are stronger and more relevant to the consumer than ever.
The people are energized by the scale of the opportunity and
determined to seize it.
The scale of the business and operations gives them the resources
needed.
They are delivering good services and the changes they brought in the
products are well taken by the customers, by this they are generating
sustainable profitable growth.
ANNEXURE
 QUESTIONAIRE

1 .Are you aware of the brand HUL?

1. YES 2. NO 3.NOT SURE 4.DEFINITELY

2. Which brand you generally use?

1. HUL 2.ITC 4. HALDIGRAMS 3.OTHERS

3. Do you think HUL brand is ?

1. TOP 2. MIDDLE 3. LAST 4.NONE OF ABOVE

4. Does your product satisfy your needs?

1. YES 2. NO 3.DEFINITELY 4.NOT SURE

5. If you go for repurchase of your product, will you prefer going for the same
product?

1. YES 2.NO 4.DEFINITELY 3.NOT SURE

6. Which product of HUL you use more?

1. HOMECARE 2.FOODBRANDS 3.PERSONAL BRANDS

4.BEVERAGES

7. Do you find it is easily available in the market?

1. YES 2.NO 3.DEFINETLY 4.NOT SURE

8. Why did you like the brand most?
1. Sensitive to Skin 2. Fragrance 3. Fresh 4.GOOD

9. How you Know these Product?

1.Advertisement 2. Mouth Publicity 3. Reference Group 4.NEWS PAPER

10. Will you recommend HUL brand to others?

1.YES 2. Definitely 2. Not sure 3. Definitely not

 BIBLIOGRAPHY

While preparing the report I took the help of the internet and some related
books. The names of the website that I have visited are given below

1. www.wikipedia.com
2. www.google.com
3. www.hul.com

Apart from visiting the websites I have also read books of marketing and
consumer satisfaction of some authors like

Marketing Management - Philip Kotler

Consumer Satisfaction - Peter Drucker