Anuja Kumar PROJECT

A study on effect of Advertisement on Buyers Behavior in FMCG Sector with special reference to Hindustan Unilever Limited.
J. L. Chaturvedi College of Engineering Department of Business Management, Nagpur
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EXECUTIVE SUMMARY
This project involves the study of advertisement effect on buyers behavior in FMCG sector. During this project it was tried to know the advertisement watching/read /listening interest of general customer and their effect on their buying behavior. The main objective of this project includes knowing the Advertisement effect of HUL on consumer mind as compare to others Company, to find out the Factors those are making Advertisement effective for consumer, effective media for advertisements etc. Its scope includes are to understand the important factors that are required for effective Advertisement, to build product awareness and Brand Building in the Market, to understand the customers perception towards advertisement. This project covers various research methodology and sources of data. Primary data is collected from consumer directly. Means it collected from customer by questionnaires. While the source of secondary data is Book, Internet etc. The research methodology is used in this project is mainly descriptive. And Hypothesis of this project is null hypothesis. There are various factors that make advertisement effective and change the perception of customer. Like clear & fair message, Truthfulness, Celebrity promotion, Creativity in
advertisement etc. Product detail information, Product quality, Differentiating point, Product punch etc are the factors that make advertisement effective.
While we tried to minimize the effect of limitation on this project but still there are certain limitation which is present in this project.
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Some suggestion and recommendation is also suggested by this project. Hope that it will be helpful for the organization and others.
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ADVERTISEMENT What is advertising?

The word advertising is derived from the Latin word viz, "advertero" specific thing". Simply stated advertising is the art "says green." Advertising is a general term for and all forms of publicity, from the cry of the street boy selling newspapers to the most celebrate attention attracts device. The object always is to bring to public notice some articles or service, to create a demand to stimulate buying and in general to bring together the man with something to sell and the man who has means or desires to buy". Advertising has been defined by different experts. Some of the quoted definitions are: American marketing association has defined advertising as "any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor. The medium used are print broad cast and direct. Stanton deserves that "Advertising consists of all the activities involved in presenting to a group a non- personal, oral or visual openly, sponsored message regarding a product, service, or idea. This message called an advertisement is disseminated through one or more media and is paid for by the identified sponsor. "ad" meaning towards and "verto" meeting towards and "verto" meaning. "I turn literally
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Advertising is any paid form of non personal paid of presentation of ideas goods or services by an identified sponsor. Advertising is a "non- personal paid message of commercial significance about a product, service or company made to a market by an identified sponsor. In developing an advertising program, one must always start by identifying the market needs and buyer motives and must make five major decisions commonly referred as 5M (mission, money message, media and measurement) of advertising.
INTRODUCTION OF ADVERTISING EFFECTIVENESS

The objectives of all business are to makes profits and a merchandising concern can do that by increasing its sales at remunerative prices. This is possible, if the product is widely polished to be audience the final consumers, channel members and industrial users and through convincing arguments it is persuaded to buy it. Publicity makes a thing or an idea known to people. It is a general term indicating efforts at mass appeal. As personal stimulation of demand for a product service or business unit by planting commercially significant news about it in a published medium or obtaining favorable presentation of it upon video television or stage that is not paid for by the sponsor. On the other hand, advertising denotes a specific attempt to popularize a specific product or service at a certain cost. It is a method of publicity. It always intentional openly sponsored by the sponsor and involves certain cost and hence is paid for. It is a common form of non- personal communication about an organization and or its products idea service etc. that is transmitted to target audiences through a mass medium. In common parlance the term publicity and advertising are used synonymously.
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Basic Features of Advertising:

On the basis of various definitions it has certain basic features such as: 1. It is a mass non-personal communication. 2. It is a matter of record. 3. It persuades buyers to purchase the goods advertised. 4. It is a mass paid communication. 5. The communication media is diverse such as print (newspapers and magazines) 6. It is also called printed salesmanship because information is spread by means of the written and printed work and pictures so that people may be induced to act upon it.
Functions of Advertising:
For many firms advertising is the dominant element of the promotional mix particulars for those manufacturers who produce convenience goods such as detergent, non prescription drugs, cosmetics, soft drinks and grocery products. Advertising is also used extensively by maters of automobiles, home appliances, etc, to introduce new product and new product features its uses its attributes, pt availability etc. Advertising can also help to convince potential buyers that a firms product or service is superior to competitors product in make in quality, in price etc. it can create brand image and reduce the likelihood of brand switching even when competitors lower their prices or offer some attractive incentives. Advertising is particularly effective in certain other spheres too such as: I) When consumer awareness of products or service is at a minimum. ii) When sales are increasing for all terms in an industry.
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iii) When a product is new and incorporates technological advance not strong and. iv) When primary buying motive exists.
It performance the following functions:

i) Promotion of sales ii) Introduction of new product awareness. iii) Mass production facilitation iv) Carry out research. v) Education of people.
Types of Advertising:
Broadly speaking, advertising may be classified into two categories viz., product and institutional advertising.
a)
Product Advertising:
The main purpose of such advertising is to inform and stimulate the market about the
advertisers products of services and to sell these. Thus types of advertising usually promote specific, trended products in such a manner as to make the brands seam more desirable. It is used by business government organization and private non-business organizations to promote the uses features, images and benefits of their services and products. Product advertising is sub-divided into direct action and indirect action advertising, Direct action product advertising wages the buyer to take action at once, ice he seeks a quick response to the advertisement which may be to order the product by mail, or
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mailing a coupon, or he may promptly purchase in a retail store in response to prince reduction during clearance sale. Product advertising is sub-divided into direct & indirect action advertising & Product advertising aims at informing persons about what a products is what it does, how it is used and where it can be purchased. On the other hand selective advertising is made to meet the selective demand for a particular brand or type is product.
b)
Institutional Advertising:
It is designed to create a proper attitude towards the sellers to build company
image or goodwill rather than to sell specific product or service. Its purpose is to create a frame of mind and to implant feeling favorable to the advertisers company. Its assignment is to make friends for the institution or organization. It is sub-divided into three categories: patronage, public, relations and public Service institutional advertising. i) In patronage institutional advertising the manufacturer tells his prospects and Customer about himself his policies and lives personnel. The appeals to the Patronage motivation of buyers. If successful, he convinces buyers that his Operation entitles him to the money spent by them. ii) Public relations institutional advertising is used to create a favorable image of the firm among employees, stock-holders or the general public. iii) Public service institutional advertising wages public support.
c)
Other Types:
The other types are as follows:
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i) Consumer advertising. ii) Comparative advertising. iii) Reminder advertising. iv) Reinforcement advertising.
Advertising objectives:
The long term objectives of advertising are broad and general, and concern the contribution advertising should make to the achievement of overall company objectives. Most companies regard advertising main objective as hat of proving support to personal selling and other forms of promotion. But advertising is a highly versatile communications tools and may therefore by used for achieving various short and long term objectives. Among these objectives are the following: 1. To do the entire selling job (as in mail order marketing). 2. To introduce a new product (by building brand awareness among potential buyers). 3. To force middlemen to handle the product (pull strategy). 4. To build brand preference by making it more difficult for middleman to sell substitutes). 5. To remind users to buy the product (retentive strategy). 6. To publicize some change in marketing strategy (e.g., a price change, a new model or an improvement in the product). 7. To provide rationalization (i.e. socially acceptable excuses). 8. To combat or neutralize competitors advertising.
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9. To improve the moral of dealers and/or sales people (by showing that the company is doing its share of promotion). 10. To acquaint buyers and prospects with the new uses of the product (to extend the PLC).
Benefits:
The functions of advertisement, and that purpose its ethics, may be discussion below: 1. It leads to cheaper prices. "No advertiser could live in the highly competitive arena of modern business if his methods of selling were more costly than those of his rivals." 2. It acquaints the public with the features of the goods and advantages which buyers will enjoy. 3. It increases demand for commodities and this results in increased production. Advertising: a) b) c) d) Creates and stimulates demand opens and expands the markets. Creates goodwill which loads to an increase in sales volume. Reduces marketing costs, particularly product selling costs. Satisfied consumer demands by placing in the market what he needs.
4. It reduces distribution expenses in as much as it plays the part of thousands of salesman at a home. Information on a mass scale relieves the necessity of expenditure on sales promotion staff, and quicker and wider distribution leads to diminishing of the distribution costs.
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5. It ensures the consumers better quality of goods. A good name is the breath of the life to an advertiser. 6. By paying the way for large scale production and increased industrialization, advertising contributes its quota to the profit of the companies the prosperity of the shareholder the uplifts of the wage earners and the solution of the unemployment problem. 7. It raises the standard of living of the general public by impelling it to use to articles of modern types which may add to his material well being. "Modern advertising has made the luxuries of yesterday the necessities of today. It is a positive creative force in business. It makes two blades of grass grow in the business world where one grew before. 8. It establishes the goodwill of the concern for the test articles produced by it and in course of time they sell like hot cakes consumer search for satisfaction of their needs when they purchase goods what they want from its beauty, superiority, economy, comfort, approval, popularity, power, safety, convenience, sexual gratification and so on. The manufactures therefore tries to improve this goodwill and reputation by knowing the buyer behavior. To sum up it may be said that advertising aims at committing the producers, educating the consumer, supplementing the salesman converting the producer and the dealer to eliminate the competitor, but above all it is a link between the produce and the consumer.
Why & When to Advertise?

Advertising as a tool to marketing not only reaches those who buy, but also those whose opinions or authority is counted for example a manufacturer of marble Tiles and building boards advertises not only to people who intend to build houses but Also to architect and engineers. While the manufacturers of pharmaceuticals products Advertise to doctors as well as to the general public. At time it is necessary for a Manufacturer or a concern to
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advertise things which it does not sell but which when Sold stimulates the sales of its own product. There are concerns like electric heaters, Iron etc. because the use of these increases the demand for their products. Advertising should be used only when it promises to bring good result more economically and efficiently as compared to other means of selling. There are goods for which much time and efforts are required in creating a demand by sending Salesman to prospective buyers than by simply advertising them. In the early days of the cash register in America it was sold by specially trained salesman who called on the prospective users and had the difficult task of convincing them that they could no Longer carry on with the old methods, and that they urgently needed a cash register. In Our country certain publishers have found it less costly to sell their books by sending Salesman from house to house among prospective buyers than to advertise them. In these two examples the cost of creating demand would be too high if attempted by Advertising alone under such circumstances advertising is used to make the salesman acceptable to the people they call upon to increase the confidence of the public in the house. Naturals when there are good profits competitors will be attracted and they should be kicked out as and when sufficient capital is available by advertising on a large scale. Immediate result may not justify the increased expenditure but it will no doubt secure future sales.
Designing advertising campaign:

Advertising is an organized series of advertising messages. It has been defined as "a planned, co-ordinate series of promotional efforts built around a central theme and designed to reach a specified goal." In other words, it is an orderly planned effort consisting of related but self contained and independent advertisements. The campaign may appear in one more media. It has single theme or keynote idea and a single objective or goal. Thus, "a unified theme of content provides psychological continuity throughout the campaign while visual and oral similarities provide physical continuity. In
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short run, all campaign want pre-determined psychological reaction in the long run, practically all campaigns have sales goal. The series of advertisements used in the campaign must be integrated with the sales promotional efforts and with the activities of the sales force. Campaign varies in length some may run only for a few days, other for weeks, yet other for a season or the entire year. Usually a range of 3 to 6 months includes many campaigns. Many factors influences campaign length such as competitors advertising media, policies, seasonal falls curves of the product involved, the size of the advertising funds, campaign objectives and the nature of the advertisers marketing programme.
Objectives of campaign:
The advertising campaign, especially those connected with the consumers aims at achieving these objectives: i) To announce a new product or improve product. ii) To hold consumers patronage against intensified campaign use. iii) To inform consumers about a new product use. iv) To teach consumers how to use product. v) To promote a contest or a premium offer. vi) To establish a new trade regional, and vii) To help solve a coca regional problem. The institutional advertising campaign on the other hand, has these objectives. i) To create a corporate personality or image. ii) To build a company prestige.
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iii) To keep the company name before the public. iv) To emphasize company services and facilities. v) To enable company salesman to see top executive consistently when making sales calls, and vi) To increase friendliness and goodwill towards the company.
BUYERS BEHAVIOR
Consumer behavior is the study of when, why, how, and where people do or do not buy a product. It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioral variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. Customer behavior study is based on consumer buying behavior, with the customer playing the three distinct roles of user, payer and buyer. Research has shown that consumer behavior is difficult to predict, even for experts in the field. Relationship marketing is an influential asset for customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalization, customization and one-to-one marketing. Social functions can be categorized into social choice and welfare functions.
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Figure: - Buyer behavior - The decision-making process
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INTRODUCTION TO COMPANY
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company with a heritage of over 75 years in India and touches the lives of two out of three Indians.
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HUL works to create a better future every day and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others. With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Ponds, Vaseline, Lakm, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Walls and Pureit. The Company has over 16,000 employees and has an annual turnover of around Rs.19, 401 crores (financial year 2010 - 2011). HUL is a subsidiary of Unilever, one of the worlds leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about 44 billion in 2011. Unilever has about 52% shareholding in HUL.
Company History
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In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers". With it began an era of marketing branded Fast Moving Consumer Goods (FMCG).
Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim. Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937. In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). These three companies merged to form HUL in November 1956; HUL offered 10% of its equity to the Indian public, being the first among the foreign subsidiaries to do so. Unilever now holds 52.10% equity in the company. The rest of the shareholding is distributed among about 360,675 individual shareholders and financial institutions. Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986. The liberalization of the Indian economy, started in 1991, clearly marked an inflexion in HUL's and the Group's growth curve. Removal of the regulatory framework allowed the company to explore every single product and opportunity segment, without any constraints on production capacity. Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the most visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills Company (TOMCO) merged with HUL, effective from April 1, 1993. In 1996, HUL and yet another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme
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Unilever Limited, to market Lakme's market-leading cosmetics and other appropriate products of both the companies. Subsequently in 1998, Lakme Limited sold its brands to HUL and divested its 50% stake in the joint venture to the company. HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994, Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary Pads. HUL has also set up a subsidiary in Nepal, Unilever Nepal Limited (UNL), and its factory represents the largest manufacturing investment in the Himalayan kingdom. The UNL factory manufactures HUL's products like Soaps, Detergents and Personal Products both for the domestic market and exports to India. As a measure of backward integration, Tea Estates and Doom Dooma, two plantation companies of Unilever, were merged with Brooke Bond. Then in 1994, Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL), enabling greater focus and ensuring synergy in the traditional Beverages business. 1994 witnessed BBLIL launching the Wall's range of Frozen Desserts. By the end of the year, the company entered into a strategic alliance with the Kwality Icecream Group families and in 1995 the Milkfood 100% Icecream marketing and distribution rights too were acquired. Finally, BBLIL merged with HUL, with effect from January 1, 1996. The 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.. In January 2000, in a historic step, the government decided to award 74 per cent equity in Modern Foods to HUL, thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. HUL's entry into Bread is a strategic extension of the company's wheat business. In 2002, HUL acquired the government's remaining stake in Modern Foods.
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In 2003, HUL acquired the Cooked Shrimp and Pasteurised Crabmeat business of the Amalgam Group of Companies, a leader in value added Marine Products exports. HUL launched a slew of new business initiatives in the early part of 2000s. Project Shakti was started in 2001. It is a rural initiative that targets small villages populated by less than 5000 individuals. It is a unique win-win initiative that catalyses rural affluence even as it benefits business. Currently, there are over 45,000 Shakti entrepreneurs covering over 100,000 villages across 15 states and reaching to over 3 million homes. In 2002, HUL made its foray into Ayurvedic health & beauty centre category with the Ayush product range and Ayush Therapy Centres. Hindustan Unilever Network, Direct to home business was launched in 2003 and this was followed by the launch of Pureit water purifier in 2004. In 2007, the Company name was formally changed to Hindustan Unilever Limited after receiving the approval of share holders during the 74th AGM on 18 May 2007. Brooke Bond and Surf Excel breached the Rs 1,000 crore sales mark the same year followed by Wheel which crossed the Rs.2, 000 crore sales milestone in 2008. On 17th October 2008, HUL completed 75 years of corporate existence in India
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Company structure
Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods (FMCG) Company. It is present in Home & Personal Care and Foods & Beverages categories. HUL has about 15,000 employees, including over 1400 managers. The fundamental principle determining the organization structure is to infuse speed and flexibility in decision-making and implementation, with empowered managers across the companys nationwide operations.
Board of Directors:
The Board of Directors of the Company represents an optimum mix of professionalism, knowledge and experience. The total strength of the Board of Directors of the Company is nine Directors, comprising Non-Executive Chairman, four Executive Directors and four Non-Executive Independent Directors. Company with effect from 1st July, 2005.
Mr.
Harish Chairman
Manwani
Mr.
Harish
Manwani
(57)
assumed charge as the NonExecutive Chairman of the
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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. Gopal Vittal - Executive Director, Home & Personal Care.
Mr
Pradeep Executive
Banerjee
Director,
Supply Chain
Mr.
R.
Sridhar
Chief Mr. O. P. Bhatt -
Financial Officer Independent Director
Mr.
A.
Narayan
Independent Director
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Mr.
S.
Ramadorai
Independent Director
Dr. R. A. Mashelkar - Independent Director
Company vision:
Unilever products touch the lives of over 2 billion people every day whether that's through feeling great because they've got shiny hair and a brilliant smile, keeping their homes fresh and clean, or by enjoying a great cup of tea, satisfying meal or healthy snack. The four pillars of our vision set out the long term direction for the company where we want to go and how we are going to get there:

We work to create a better future every day We help people feel good, look good and get more out of life with brands and services that are good for them and good for others.
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We will inspire people to take small everyday actions that can add up to a big difference for the world.
We will develop new ways of doing business with the aim of doubling the size of our company while reducing our environmental impact.
Purpose & principles:

Our corporate purpose states that to succeed requires "the highest standards of corporate behavior towards everyone we work with, the communities we touch, and the environment on which we have an impact." Always working with integrity. Positive impact. Continuous commitment. Setting out our aspirations. Working with others.
COMPANY BRANDS Food brands:

HUL is one of Indias leading food companies. Our passion for understanding what people want and need from their food - and what they love about it - makes our brands a popular choice.
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The popular brands of HUL are:
Annapurna Partnering with the mom in nurturing her dreams, Annapurna Atta is aimed at helping her provide wholesome tasty nutrition to her family.
Kissan Eat Happily. Grow Happily.
Kwality Walls Red Label Brooke Bond Red Label 'Chuskiyaan Zindagi ki' A good honest scoop of daily pleasure.
Brooke Bond Taaza Brooke Bond Taaza
Lipton Lipton has a range of vitality teas that truly encompass the goodness of tea
Home care brands:
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HUL has a diverse portfolio of brands offering home care solutions for millions of consumers across India. Domex The sheer power of Domex bleach gives you the confidence you need, eradicating all known germs.
Active Wheel New Active Wheel with Power of lemons and freshness of thousands of flowers!
Rin Rin provides best in class whiteness which is Comfort The worlds largest fabric conditioner brand. demonstrable.
Surf Excel Giving your kids the freedom to get dirty and experience life, safe in the knowledge that Surf Excel will remove those stains
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Vim
Created in 1885, the Vim brand is still innovating and using the magic of natural ingredients to create unbeatable results over a hundred years late
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. Clinic Plus Clinic Plus - makes hair inside strong, outside long! Axe Axe with Best Quality Fragrance Closeup Freshness that brings you Closer
Clear New CLEAR with Nutrium 10 goes 3 layers deep** into the scalp to nourish such that Dandruff Wont Come Back*!
Sunsilk Sunsilk has had a re-style
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Fair & Lovely More than 30 years ago, a unique brand was born. Wrapped within a humble lavender tube, it went on to become the Worlds No.1 Fairness cream.
Lakme is an ally to the Indian Woman and inspires her to express her unique beauty and sensuality. Thus, enabling her to realize the potency of her beauty.
Lux Lux For soft and smooth skin!
Pepsodent Pepsodent India is committed to improve the overall Oral health of Indians.
Dove Dove stands for real beauty. All around the world, Dove is making real women feel more beautiful!
Ponds Get the expert to look after your skin
Lifebuoy Lifebuoy is available in multiple variants in soaps and specialist formats such as liquid hand wash, catering to the entire family.
Lakme
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Vaseline Pears Pears the purest and most gentle way to skincare! Your skin is amazing. It deserves to be treated as such.
Breeze Breeze, with the goodness of glycerin gives soft, fragrant and smooth skin. Liril 2000 Liril 2000-Now come closer to your loved ones.
Water:
Pureit is the worlds most advanced in-home water purifier. Pureit, a breakthrough offering of Hindustan Unilever (HUL), provides complete protection from all water-borne diseases, unmatched convenience and affordability.
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Pureits unique Germkill Battery technology kills all harmful viruses and bacteria and removes parasites and pesticide impurities, giving you water that is "as safe as boiled water". It assures your family 100% protection from all water-borne diseases like jaundice, diarrhea, typhoid and cholera. Whats more, it doesnt need gas, electricity or continuous tap water supply. Pureit not only renders water micro-biologically safe, but also makes the water clear, odourless and good-tasting. Pureit does not leave any residual chlorine in the output water. 1. Micro-fiber MeshTM - Removes visible dirt 2. Compact Carbon TrapTM - removes remaining dirt, harmful parasites & pesticide impurities 3. Germkill ProcessorTM uses 'programmed chlorine release chlorine technology' and its stored germkill process targets and kills harmful virus and bacteria 4. PolisherTM removes residual chlorine and all disinfectant byproducts, giving clear odourless and great tasting water 5. Battery Life Indicator - Ensures total safety because when the germkill power is exhausted, the indicator turns red, warning you to replace the battery Advanced Auto-Switch off - In case, the battery is not changed when it turns fully red, as an additional assurance of safety, the advanced Auto-Switch off will automatically switch-off the flow of water.
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OBJECTIVE
The main objective of the study is as follows: To know the Advertisement effect of HUL on consumer mind as compare to others Company. To find out the Factors those are making Advertisement effective for consumer. How does the Advertisement of HUL persuade to purchase a Product to consumer? To know the different form (Media) of Advertisement that HUL require in different area to convince the different type of consumer.
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HYPOTHESIS
Fair and clear Advertisement creates a positive impact on consumer mind. Advertisement is important and essential for company Television is the most effective medium for advertisements of FMCG product.
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SCOPE OF STUDY
This project is helpful for FMCG sector to understand the important factors that are required for effective Advertisement. This project is helpful to build product awareness and Brand Building of HUL in the Market. This project is helpful for HUL to understand the customers perception towards advertisement. This project is helpful for HUL to launching new Products in future with focus on right type of advertisement campaigning.
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7.1 Research design: A research design is the arrangement of condition and analysis of data a manner that aims to combine relevance to the research purpose with economy in procedure. Types of research design1) Descriptive design. 2) Diagnostic design. 3) Exploratory method.
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7.2 Primary data Primary data is the data that is collected for specific purpose or for a specific research project, the source of data for this study was basically the primary data. Primary data for this project was collected through field survey, by face to face interview, through questionnaires and paper sources.
7.3 Secondary data Secondary data is the data that was collected initially and already exists in the form of reports, journals, articles (on published data), on website etc.
7.4 Population In statistical usages the term population is applied to any finite or infinite collection of individuals. In this case the population includes the total number of customer in Nagpur Nandanvan area. .
7.5 Sample size It is a part of population or a subset from a set of units, which is provided by some process or other usually by deliberate selection with the object of investigating the properties of the parent population. Sample size: - 200 customers.
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7.6 Sampling method The sample for the study was confined to the general customers. Random sampling was done for survey. A random sample gives every unit of the population a known and non-zero probability of being selected. Since random sampling implies equal probability to every unit in the population, it is necessary that the selection of the sample must be free from human judgment.
7.7 Method of data collection The data collection was primary in nature. The data was collected through direct contact with respondent. This method also helps to get fresh and accurate information for analysis of the problem faced by organization. The sample was chosen based on area. The Nandanvan market is residential area. The respondent from these area are selected randomly. However some secondary data was also collected from company record and previous market research.
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Q.1) Do you see/watch/hear advertisement? Table-1
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Option Yes No Total
No. of Respondent 194 6 200 Chart-1
% of Response 97 6 100
Do you see/watch/hear advertisement?
3%
Yes No 97%
Interpretation: From above data we found that maximum number of customer see/watch/hear advertisement, while very few number of people said they dont see/watch/hear advertisement,
Q.2) Do you purchase a product after watching advertisement?
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Table-2 Option Yes No Sometime Total No. of Respondent 90 30 80 200 Chart-2 Do you purchase a product after watching advertisement? % of Response 45 15 40 100
Sometim e 40%
Yes 45%
No 15%
Interpretation: From above data we found that maximum customer purchase the product after watching advertisement. Many people said that sometime they purchase the product after watching the advertisement While few customer has negative view on this question.
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Q.3) Which media or mode of advertisement you mostly prefer? Table-3 Option TV Radio Newspaper Other Total No. of Respondent 160 10 20 10 % of Response 80 5 10 5
Chart-3
which media or mode of advertisement you mostly prefer?
80 70 60 50 40 30 20 10 0 TV Radio
Newspaper
Other
Interpretation: Television is the most effective media for advertisement of FMCG product, while secondary priority newspaper.
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Radio and other media dont have much significant for advertisement of FMCG product. Q.4) Which Brand or product advertisement in FMCG sector you like mostly? Table-4 Option HUL Dabur ITC Other Total No. of Respondent 114 34 44 8 200 Chart-4 % of Response 57 17 22 4 100
Which Brand or product advertisement in FMCG sector you lik e mostly?
120 100 80 60 40 20 0 HUL Dabur ITC Other Which Brand or product advertisem ent in FMCG sector you like m ostly?
Interpretation:
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From above data we found out that consumers are mostly attracted by Hindustan Unilever Limited product advertisement. ITC also attract customer up to certain level. It shows that HUL advertisement is more effective as compare to other company in FMCG sector. Q.5) Why do you like such advertisement? Table-5 Option Clear & fair message Truthfulness Celebrity promotion Creativity Other Total No. of Respondent 82 36 26 46 10 200 Chart-5 % of Response 41 18 13 23 5 100
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Whydo you like such advertisement?

90 80 70 60 50 40 30 20 10 0 Clear & fair message Truthfullness Celebrity pramotion Creativity Other
Interpretation: From above data we found out that clear and fair message attract consumer mostly. Creativity and truthfulness in advertisement also important factor for the customer. Celebrity promotion also attract customer up to some extent. Q.6) What are the factors that make advertisement effective according to you? Table-6 Option Product information Product quality Differentiating point Product punch line All No. of Respondent 50 54 10 16 68 % of Response 25 27 5 8 34
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Any other Total
2 200 Chart-6
1 100
What are the factors that make advertisement effective according to you?
50
54 10 16
68 2
Interpretation: From above data we found that all factors (product information, product quality, product punch line etc) make advertisement more effective. Q.7) Do you think above factors are present in HUL advertisement? Table-7 Option No. of Respondent % of Response
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Yes No up to certain extent Total
118 28 54 200 Chart-7 Do you think above factors are present in HUL advertisement?
Yes No
59 14 27 100
Upto certain extent
Interpretation: From above data it is clear that most of consumers thought that the factors which make the advertisement effective are present in HUL advertisement. While some customers thought that it is present up to certain extent. Few customers have given negative answer also to the question. Q.8) Is the advertisement of HUL changes your purchase decision or perception towards product? Table-8 Option Yes No Sometime Total No. of Respondent 90 26 84 200 % of Response 45 13 42 100
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Chart-8
100 80 60 40 20 0
90 84 26 Yes No
Upto certain extent
Interpretation: From the above graph it is clears that HUL advertisement mostly changes the perception of consumers. 42% customer said that HUL advertisement changed their perception up to certain extent. Here negative answer is also given by FEW customer and they dont feel that HUL advertisement changed their perception. Q.9) How does advertisement of HUL changes your purchase decision or perception towards product? Table-9 Option By celebrity promotion By changing perception By detailing product features Other Total No. of Respondent 48 48 96 8 200 Chart-9 % of Response 24 24 48 4 100
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How does advertisement of HUL changes your purchase decision or perception towards product?
Other 4%
Bycelebrity prom otion 24%
Bydetailing product features 48% Bychanging perception 24%
Interpretation: By detailing product features it changes consumer perception/purchase decision. Celebrity promotion also one of the factor that changes customers perception towards the product. Q.10) From where you get maximum information about product? Table-10 Option TV Radio Newspaper Other Total No. of Respondent 148 10 32 10 200 % of Response 74 5 16 5 100
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Chart-10
Fromwhere you get m axim um inform ation about product? 160 140 120 100 80 60 40 20 0 TV Radio Newspaper Other 32 10 10 148
Interpretation: From above data we found that consumer get maximum information about product is from TV. While newspaper has also some impact. Other media doesnt keep much important. Q.11) In advertisement what factor insists you to purchase the product? Table-11 Option Product message appeal Product promotion method No. of Respondent 32 28 % of Response 16 14
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Product design Product information All Other Total
48 26 64 2 200 Chart-11
24 13 32 1 100
In advertisement what factor insists you to purchase the product?
Product m essage appeal 32% 1% 16% 14% 24% 13% Product prom otion m ethod Product design Product inform ation All Other
Interpretation: From above data we found that all factors (product message appeal, product promotion method, product design, and product information) insist customer to purchase the product. Q.12) Which media advertisement is more effective/necessary for sale of FMCG product? Table-12
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Option TV Newspaper Magazine Other Total
No. of Respondent 148 30 14 8 200 Chart-12
% of Response 74 15 7 4 100
Which m edia advertisem ent is m ore effective/necessary for sale of FMCG product? 160 140 120 100 80 60 40 20 0 TV Newspaper 30 14 8 Magazine Other 148
Interpretation: Above data show that TV is most effective media for sale of FMCG products. Newspaper is also little bit effective medium. While other media doesnt has significant value. Q.13) Do you think the advertisement is necessary for sale of FMCG Product?
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Table-13 Option Necessary Very Necessary Not Necessary Cant Say Total No. of Respondents 96 76 12 16 200 Chart-13 Do you think the advertisement is necessary for sale of FMCG Product?
Necessary Verynecessary Not necessary Can't say
% of Response 48 38 6 8 100
8% 6%
48%
38%
Interpretation: From above data we found out that advertisement necessary for sale of FMCG product.
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Very few customers have said that it is not necessary.
Page 56
FINDING OF STUDY
1. 97% (Majority of customer) watch/see/hear advertisement. 2. As per opinion of customer most of customer purchase the product after watching /see/ hearing advertisement. 3. 80% customer prefers Television as an advertising media, and very few prefer other media of advertisement of FMCG product. 4. Mostly customer like HUL advertisement as compare to other company in FMCG sector. 5. Clear and fair message attract customer mostly and creativity also attract up to some extent. 6. Mostly customer said that all factors (product quality, product information, product punch line, differentiating point) make advertisement more effective. 7. Majority of customer told that above factors are present in HUL advertisement, while some negative answer was also present. 8. Mostly customer feel that HUL advertisement changed their perception/towards product. 9. Detailing product features and celebrity promotion mostly change the perception of customer towards the product.
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10. TV plays a major role in spreading information as compare to other medium. 11. Mostly all factors (product message appeal, Product promotion method, product information, product design) insist customer to purchase the product. 12. According to customer point of view TV is the most effective mode of advertisement for FMCG product, as compare to other media. 13. Majority of customer said that advertisement is necessary for sale of FMCG product.
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CONCLUSION
Majority of customer see/watch/hear advertisement. Advertisement also helps the customer to purchase a product. Television
is the most effective media for advertisement to
attract customer.
HUL
advertisement mostly attracts the customer in FMCG
sector.
Clear and fair message is effective way to attract customer.
Page 59
Many factors including Product information, Product quality,

Differentiating point, Product punch line is necessary to make advertisement effective.
Above factors are present in HUL product. HUL

advertisement mostly changes the perception of
customer towards the product.
Mostly
customer gets information about the product from
Television.
Television
is most effective media of advertisement for
FMCG product.
Advertisement is necessary for sale of FMCG product.
Page 60
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SUGGESTION AND RECOMMENDATION
Advertisement is essential for FMCG Company. Advertisement should mostly broadcast on Television to attract customer. HUL need it. some change or creativity in their
advertisement so those unconvinced customers also like
HUL should give more emphasis on clear and fair message and creativity in advertisement.
Page 62
Page 63
LIMITATION
The study was thoughtful for knowing the analysis of effect of advertisement on buyers behavior in FMCG sector with special reference to HUL, Nagpur. Preparing this project report, still there were some limitations. These limitations are unavoidable. Some major limitations which I faced while preparing this project are as follows: The main limitations of the study are: The study is based on only in the Nagpur City in Nandanvan area. The study was restricted to FMCG products only. Study may not fully represent the whole population. I was able to interact and analyses only 200 questionnaires which were very less to know about perception of people in current market towards advertisement.
Page 64
Some respondents showed unwillingness in responding the questionnaire due to time factor. Some respondents were not able to fill the questionnaire properly. They leave some questions and dont feel necessary to answer. Owing to their pre occupation some customers were unable to answer the complete questionnaire. The project was constrained by time limit.
Page 65
BIBLIOGRAPHY
Book referred:
Page 66
Sr. No. 1. 2.
Title Research Methodology Marketing Management
Author C. R. Kothri Philip Kotlar and Kelvin Keller
Publication New Age International Pearson Hall Publication
Edition 2nd revised edition 12th edition
Website: http://www.hul.co.in/aboutus/introductiont ohul/ http://en.wikipedia.org/wiki/Hindustan_Unil ever http://en.wikipedia.org/wiki/Consumer_beh aviour
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A study on effect of Advertisement on Buyers Behavior in FMCG Sector with special reference to Hindustan Unilever Limited.

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

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

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

ADVERTISEMENT What is advertising?

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

INTRODUCTION OF ADVERTISING EFFECTIVENESS

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

Basic Features of Advertising:

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

It performance the following functions:

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

The other types are as follows:

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

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

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

Why & When to Advertise?

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

Designing advertising campaign:

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

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

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

Figure: - Buyer behavior - The decision-making process

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

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

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

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

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

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

assumed charge as the NonExecutive Chairman of the

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

Mr. Gopal Vittal - Executive Director, Home & Personal Care.

Chief Mr. O. P. Bhatt -

Financial Officer Independent Director

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

Dr. R. A. Mashelkar - Independent Director

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

Purpose & principles:

COMPANY BRANDS Food brands:

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

The popular brands of HUL are:

Kissan Eat Happily. Grow Happily.

Brooke Bond Taaza Brooke Bond Taaza

Home care brands:

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

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

Personal care brands:

Sunsilk Sunsilk has had a re-style

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

Lux Lux For soft and smooth skin!

Ponds Get the expert to look after your skin

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

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

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

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

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

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

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

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

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

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

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

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