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A THESIS ON

Measuring the Advertising Effectiveness of Surf Excel


(HUL) and Its Effect on Consumer Buying Behavior

By

Vipul Kohli

INC AdamSmith, Gurgaon

(8nbma001)

Nov 13, 2009

1
A Thesis on
Measuring the Advertising Effectiveness of Surf
Excel (HUL) and Its Effect on Consumer Buying
Behavior

BY

Vipul Kohli

Enroll No. - 8nbma001

A Report submitted in partial fulfillment of the requirements of

THE MBA PROGRAM

(Class of 2009)

Under the guidance of

Miss Vandana Sharma

Faculty Marketing

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GURGAON

ACKNOWLEDGMENT

I am grateful to all those who have helped me directly or indirectly in


company this project .I firmly believe that there is always scope for
improvement and accordingly. I shall take forward to receive
suggestions.

I exuberantly thankful to Miss Vandana Sharma who guides


me and help taking right direction in field work. I further welcome
inspiration and suggestion to make it best.

I sincerely believe that the road of improvement is


never ending. Hence I shall forward to end gratefully acknowledge all
suggestions received. My sincere apology is who helped me in a variety
of wage and whose name could not be individually acknowledged.

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Preface
Professional education is not perfect without fieldwork. Project it on
essential port of M.B.A. It make familiar to the student with current
market position .This report is a humble attempt to sketch the
advertising effectiveness of surf excel and its effects on consumer buying
behavior.

This project report will be helpful in analysis of perception of Customers


towards advertising of surf excel and also measure the effect on
consumer buying behavior. I am very thankful to Miss Vandana
Sharma (faculty guide) who allowed me to take my project in HUL
Gurgaon. I invite suggestion and convection with open heart for further
incorporation and improvement of this project report.

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TABLE OF CONTENT

Acknowledgements

Preface

List of Tables

Abbreviations

Summary

1. Introduction
1.1 Objectives
1.2 Limitations
1.3 Methodology

2. Advertising
2.1 Introduction
2.2 Medium of advertising

2.3 History of Advertising

3. Future of Advertising

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4. Company Profile

4.1 Introduction

4.2 Products of HUL

4.3 Who’s Who

5. Literature Review

5.1 Overview

6. Research & Methodology

6.1 Data Collection and Procedure

6.2 Sampling

6.3 Variables

6.4 Questionnaire Testing

7. Empirical Analysis

8. Findings & Observations

9. Conclusion and Suggestions

10. Appendices

11. References

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List of Tables

1. Table 1 – with Bar Chart

34

2. Table 2 – with Pie Chart

35

3. Table 3 – with Bar Chart 36

4. Table 4 – with Pie Chart 37

5. Table 5 – with Pie Chart

38

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6. Table 6 – with Bar Chart 39

7. Table 7 – with Bar Chart 40

8. Table 8 – with Bar Chart 41

9. Table 9 – with Bar Chart 42

10. Table 10 – with Column Chart


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Abbreviations

NFR Need for recognition

i.e. That is

B2B Business to business

B2C Business to consumer

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Mktg Marketing

Mkt Market

Ad Advertisement

WWW World Wide Web

CPC Cost Per Click (online advertising)

IAB Internet Advertising Bureau

Summary

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This project is mainly based on first hand observation in the market, the

way customers perceive the various advertisements and in way it effects

their buying behavior.

The Study which I had done in this was about to analyze the
advertising effectiveness of Surf Excel and its effect on consumer buying
behavior. First of all I had to go with some past studies which are called
Literature review to know the way of completing the project or some
valuable ideas regarding my studies.

After literature review, I came to know that what variable I should include in
my study, considering those variables I prepared the questionnaire to know
the desired results and checked it with one small sample i.e. 10people.

During testing the questionnaire, I came to know some points which i had to
change in the questionnaire to put off the confusion of the respondents.

Then I collected the data of 50 people using convenient sampling.

Information was collected related to the effect of advertising on consumer

buying behavior with the help of a questionnaire.

Then I summarized all the data, and test it with questionnaire on Likert
Scale. I made all the calculations with the help of EXCEL 2007.

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INTRODUCTION

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Objectives of Study

The main aim of undertaking this study is to accomplish the following


objective:

 To study the consumer buying behavior.

 To study the impact of advertising of surf excels on consumer buying


behavior.

 Conducting a market survey and understanding the


customer perception.

 Analysis of customer awareness of product.

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Limitations of Study

Though the present study aimed to achieve the above-


mentioned objectives in full earnest and accuracy, it was
hampered due to certain limitations. Some of the limitations of
this study may be summarized as follows:

 Presence of various advertising medium.

 It may be possible that the same tools are being used by the different
companies.

 Time was a major limiting factor and it was very tough to get the time
of the survey and other activities because of the study.

 Unwillingness on the part of few respondents to disclose the


information.

 Getting accurate responses from the respondents due to


their inherent problems was difficult. They were partial,
and refused to cooperate.

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Methodology
The objective of the present study can be accomplished by conducting a
systematic market survey. Market Research is a systematic design,
collection, analysis and reporting of data and finding that are relevant to
different market situation facing by the company. I had to know the
advertising effectiveness of Surf Excel and its effect on consumer buying
behavior. I prepared one questionnaire, which I tested with 10 people data;
it also helped me to rectify the questionnaire where some questions were
confusing the respondents.

For this synopsis, the fit with a quantitative study is better because of the
need for several different views on the questions and to decrease the factor
of that different people think differently. For quantitative, the corresponding
are; structured observations, interviews and surveys, and attitude scaling.

I used the convenience sampling method to collect the data. First of all, I
interact with them and find out 50 such customers who use the Surf Excel in
daily life.

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Advertising

Is a form of communication used to influence individuals to


purchase products or services or support political candidates or ideas.
Frequently it communicates a message that includes the name of the
product or service and how that product or service could potentially benefit
the consumer. Advertising often attempts to persuade potential customers
to purchase or to consume a particular brand of product or service.

Medium of Advertising

✔ Magazines: Print advertising describes advertising in a printed


medium such as a newspaper, magazine, or trade journal. This
encompasses everything from media with a very broad readership
base, such as a major national newspaper or magazine, to more
narrowly targeted media such as local newspapers and trade journals
on very specialized topics. A form of print advertising is classified
advertising, which allows private individuals or companies to purchase
a small, narrowly targeted ad for a low fee advertising a product or
service.

✔ Television: The TV commercial is generally considered the most


effective mass-market advertising format, as is reflected by the high
prices TV networks charge for commercial airtime during popular TV
events. The annual Super Bowl football game in the United States is
known as the most prominent advertising event on television. The
majorities of television commercials feature a song or jingle that
listeners soon relate to the product.

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✔ Radio: Radio advertising is a form of advertising via the medium of
radio. Radio advertisements are broadcasted as radio waves to the air
from a transmitter to an antenna and a thus to a receiving device.
Airtime is purchased from a station or network in exchange for airing
the commercials.

✔ Billboards: Billboards are large structures located in public places


which display advertisements to passing pedestrians and motorists.
Most often, they are located on main roads with a large amount of
passing motor and pedestrian traffic; however, they can be placed in
any location with large amounts of viewers, such as on mass transit
vehicles and in stations, in shopping malls or office buildings, and in
stadiums.

✔ Online advertising: Online advertising is a form of promotion that


uses the Internet and World Wide Web for the expressed purpose of
delivering marketing messages to attract customers. Examples of
online advertising include contextual ads on search engine results
pages, banner ads, Rich Media Ads, Social network advertising, online
classified advertising, advertising networks and e-mail marketing,
including e-mail spam.

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History of Advertising

Egyptians used papyrus to make sales messages and wall posters.


Commercial messages and political campaign displays have been found in
the ruins of Pompeii and ancient Arabia. Lost and found advertising on
papyrus was common in Ancient Greece and Ancient Rome. Wall or rock
painting for commercial advertising is another manifestation of an ancient
advertising form, which is present to this day in many parts of Asia, Africa,
and South America. In the 17th century advertisements started to appear in
weekly newspapers in England. These early print advertisements were used
mainly to promote books and newspapers, which became increasingly
affordable with advances in the printing press and medicines, which were
increasingly sought after as disease ravaged Europe. At the turn of the
century, there were few career choices for women in business; however,
advertising was one of the few. Since women were responsible for most of
the purchasing done in their household, advertisers and agencies recognized
the value of women's insight during the creative process. In the early
1920s, the first radio stations were established by radio equipment
manufacturers and retailers who offered programs in order to sell more
radios to consumers. As time passed, many non-profit organizations
followed suit in setting up their own radio stations, and included: schools,
clubs and civic groups. When the practice of sponsoring programs was
popularized, each individual radio program was usually sponsored by a
single business in exchange for a brief mention of the business' name at the
beginning and end of the sponsored shows. However, radio station owners
soon realized they could earn more money by selling sponsorship rights in
small time allocations to multiple businesses throughout their radio station's
broadcasts, rather than selling the sponsorship rights to single businesses
per show. This practice was carried over to television in the late 1940s and
early 1950s. In the early 1950s, the Dumont Television Network began the
modern trend of selling advertisement time to multiple sponsors. The late
1980s and early 1990s saw the introduction of cable television and
particularly MTV.

Pioneering the concept of the music video, MTV ushered in a new type of
advertising: the consumer tunes in for the advertising message, rather than
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it being a by-product or afterthought. As cable and satellite television
became increasingly prevalent, specialty channels emerged, including
channels entirely devoted to advertising, such as QVC, Home Shopping
Network, and Shop TV Canada.

Marketing through the Internet opened new frontiers for advertisers and
contributed to the "dot-com" boom of the 1990s. The share of advertising
spending relative to GDP has changed little across large changes in media.
For example, in the U.S. in 1925, the main advertising media were
newspapers, magazines, signs on streetcars, and outdoor posters.
Advertising spending as a share of GDP was about 2.9 percent. By 1998,
television and radio had become major advertising media. Nonetheless,
advertising spending as a share of GDP was slightly lower—about 2.4
percent.

Future of Advertising

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Global Advertising: Advertising has gone through five major stages of
development: domestic, export, international, multi-national, and global.
For global advertisers, there are four, potentially competing, business
objectives that must be balanced when developing worldwide advertising:
building a brand while speaking with one voice, developing economies of
scale in the creative process, maximizing local effectiveness of ads, and
increasing the company’s speed of implementation. Born from the
evolutionary stages of global marketing are the three primary and
fundamentally different approaches to the development of global advertising
executions: exporting executions, producing local executions, and importing
ideas that travel.

Some Examples of Advertising was showed in 19’s and 18’s

A Coca-Cola ad from the 1890s

Edo period advertising flyer from 1806 for a traditional medicine called
Kinseitan

An 1895 advertisement for a weight gain product.

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A print advertisement for the 1913 issue of the Encyclopedia Britannica

Advertisement for "Murad" Turkish cigarettes 1918

Dove Evolution in a 2006 Commercial

Money spent on advertising has increased in recent years. In 2007,


spending on advertising was estimated at more than $150 billion in the
United States and $385 billion worldwide and the latter to exceed $450
billion by 2010. Many people are now looking for less costly forms of
advertising, as well as more effective forms of advertising.

Company Profile
Fast Moving Consumer Goods (FMCG) goods are popularly named as
consumer packaged goods. Items in this category include all consumables
(other than groceries/pulses) people buy at regular intervals. The most
common in the list are toilet soaps, detergents, shampoos, toothpaste,

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shaving products, shoe polish, packaged foodstuff, and household
accessories and extends to certain electronic goods

The FMCG sector is the fourth largest sector of Indian


economy. The Indian rural market with its vast size and demand base offers
a huge opportunity for investment. Rural India has a large consuming class
with 41 per cent of Indias middle-class and 58 per cent of the total
disposable income. It has a strong MNC presence and is characterized by a
well established distribution network, intense competition between the
organized and unorganized segments and low operational cost.The top most
players in this sector are:

1. Hindustan Unilever Limited

2. ITC

3. Asian Paints

4. Proctor And gamble

5. Cadbury India

Is one of the earliest MNCs to have entered India. It was


in the summer of 1888 that Unilever of England first
marketed Sunlight soap in INDIA. 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’s business activities are divided into four broad areas:


1. Home and personal care (personal wash, home care, skin care, hair
care, deodorants and talcs, cosmetics)

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2. Foods (tea, coffee, branded staples, ice creams, Modern Foods
ranges)
3. New Ventures (Hindustan Lever Network, Ayush ayurvedic products
and services, Pureit water purifiers)
4. Exports (HPC, beverages, marine products, rice)

Surf Excel

Surf Excel, launched in 1954, is one of the oldest


detergent powders in India. Initially, the brand was
positioned on the clean proposition of “washes whitest”.
However, with the emergence of numerous local detergent manufacturers
and the entry of other global brands,
A pioneer in the Indian detergent powder market, Surf Excel has constantly
upgraded itself over the years, to answer the constantly changing washing
needs of the Indian homemaker. Today Surf Excel offers outstanding
Stain removal ability on a wide range of stains. This means that mothers
now have the freedom to let their kids experience life without worrying
about stains.
Surf Excel quick wash is powered with a path-breaking technology- it
reduces water consumption and time taken for rinsing by 50%. It is a
significant benefit, given the acute water scarcity in most of India.
Surf Excel is available in 3 variants: Surf Excel Blue, Surf Excel Quick
Wash and Surf Excel Automatic. So whatever is the need, Surf Excel
hai Na.

WHO’S WHO

Directors of the company Harish Manwani


Dhaval Buch
D.S. Parekh

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C.K. Prahalad

CEO& Managing Director Nitin Pranjpe

Chief Financial Officer Mr. R. Sridhar

Executive Director Mr. Shreejit Mishra (Foods)


Mr. Gopal Vittal
Mr. Ashok Gupta (Legal)
Ms Leena Nair (H.R.)

Review of Literature

I have gone through several studies through journal available in


the campus library; from them I got the idea that how should I
proceed. It was very helpful to me because it was my first time
with such kind of research study regarding investor’s perception
about advisory services, so I didn’t know that what variables I
should include in my study. What tests can I do to make it fruitful.
How should I collect the data regarding these variables.

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These literatures gave me a lot of references to handle the
forthcoming problems and I came to know the variables which
determine the customer’ perception about the various medium of
advertisement on consumer buying behavior..

This study also told me that which test I had to do, because I had
to do a comparative study also regarding customer’s perception
so I had to choose those variables which determine the best
advertisement media.

So these literature reviews have helped me a lot because without


that I was unable to find out the variables and the testing
methods. Any such study I didn’t get but I got the study on
customers’ perception about vishal mega mart and its impact on
shopping behavior which also give some important things that I
have mentioned above.

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Research and Methodology

Data Collection Procedure

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• Communication, asking questions and receiving a response in person

• Visiting the organization, libraries, internet and also preparation of the

questionnaire with the help of the project guide

The primary data has been analyzed with the help of five point rating

scale method. In the five points rating the employees have chosen from

options such as – Strongly Agree, Agree, Neither Agree nor Disagree,

Disagree, Strongly Disagree.

5 = Strongly Agree; 4 = Agree; 3 = neither Agree nor Disagree; 2 =

Disagree; 1 = Strongly Disagree

The ratings provided by the respondents have been converted into

mean scores and ranked accordingly. Graphs and tables have also been

used for analyzing the data.

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Nature of Data

1. Primary Source: Data which is collected for the first time and for a

specific purpose. So I had to prepare one questionnaire to collect the

responses from 40 people all around the Gurgaon City.

Sources of Data:

• Primary Data is collected from investors from the different locations in

Gurgaon like:

 Sector21

 Sector22

 Palam Vihar

 IDPL Complex

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Sampling Method

The selection of a sample from a defined target population requires the

construction of a sampling frame. The sampling frame is commonly

prepared in the form of a physical list of population elements. A well-

constructed sampling frame allows the researcher to ‘take hold’ of the

defined target population without the need to worry about contamination of

the listing with incorrect entries or entries which represent elements

associated with the excluded population.

Types of Sampling:

• Probability sampling: requires that each member of the defined

target population has a known, and non-zero, chance of being

selected into the sample.

• Non-probability sampling: It is sometimes carried out with the

(usually implied) justification that estimates derived from the sample

may be linked to some hypothetical universe of elements rather than

to a real population.

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Types of non-probability samples

There are three main types of non-probability samples:

• Judgment Sampling

• Convenience Sampling and

• Quota samples

Type of Sampling adopted under study: Convenience sampling

A sample of convenience is the terminology used to describe a sample in which


elements have been selected from the target population on the basis of their
accessibility or convenience to the researcher.

Convenience samples are sometimes referred to as ‘accidental samples’ for the


reason that elements may be drawn into the sample simply because they just
happen to be situated, spatially or administratively, near to where the researcher is
conducting the data collection.

The main assumption associated with convenience sampling is that the members
of the target population are homogeneous. That is, that there would be no
difference in the research results obtained from a random sample, a nearby sample,

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a co-operative sample, or a sample gathered in some inaccessible part of the
population.

Variables:
Variables are of two types: Dependent variables and independent variables

refer to values that change in relationship to each other.

Dependent Variables: The dependent variables are those that are

observed to change in response to the independent variables.

Independent Variables: The independent variables are those that are

deliberately manipulated to invoke a change in the dependent variables.

Dependent Variable under study

Consumer Buying Behavior

Independent Variable under study

Advertising effectiveness tools

➢ Newspaper

➢ Magazine

➢ Internet

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➢ Television

➢ Hoardings

Questionnaire Testing:

Once the questionnaire was prepared it was filled by at least 20 clients due

to whom a number of mistakes were identified in the questionnaire.

Problems which were overcome in revised questionnaire:

• Contradictory questions were eliminated so as to remove any kind of

misunderstanding and confusion in understanding the objective of

taking the information.

• Conditions were given so as to make a client convenient in answering

the correct question as per our requirements.

• Options were changed so as to make the data analysis easy and

convenient and the problem faced by the clients in verbalizing the

information to be provided can be eliminated.

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• Language of the questions was simplified so that clients can easily

understand and answer them appropriately.

Then I collected the data of 50 people through Convenience sampling and


now I had to present this data as per the given frequency, which I had
collected through questionnaire. Refer page no. 33

Empirical Analysis

Serial No. Questions Respondent’s options


Strongl Agre Neither Disagr Strongl
y e Agree ee y
Agree Nor Disagr
Disagre ee
e
1. You mostly get 20 10 10
influenced by the
positive messages
shown in ads
2. You mostly get 5 5 5 25
influenced by the
negative messages
shown in ads
3. I consider television as 20 15 5

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the most trustable
media for buying surfs
4. I am mostly influenced 15 10 10 5
by the lady celebrity in
the ads for surfs

5. Banners hoardings 10 10 10 10
related to surf often
persuades me to make
a purchase
6. I am usually influenced 10 10 20
by the ads given in
magazines about surf
7. The type of animation 10 10 15 5
used in surf ads helps
me in purchasing
8. The comparative ads 15 1 10
shown during the surf 5
ads makes a good
impact in buying a
product
9. Window display designs 20 20
of the retail outlets
selling surfs attracts me
to purchase a product
10.I quite often remember the 20 10 10
ads shown on internet while
making purchase especially
related to fmcg products like
surf

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Serial Calculations Rankin
No. g

1. 5*20+4*10+3*10+2*0+1*0 1
=170
2. 5*5+4*5+3*5+2*25+1*0 6
=110
3. 5*15+ 4*15+3*0+2*5+ 1*5 3
=150
4. 5*15+4*10+3*10+ 2*5+1*0 5
=125
5. 5*0+4*10+3*10+2*10+1*10 8
=100
6. 5*0+4* 0+3*10+2*10+1*20 10
=70
7. 5*0+4*10+3*10+2*15+1*5 7
=105
8. 5*15+4*15+3*0+2*10+1*0 2
=155
9. 5*0+4*0+3*20+2*0+ 1*20 9
=80
10. 5*0+4*20+3*10+2*10+1*0 4
=130

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Findings and Observations

35
You mostly get influenced by the positive messages shown in adds

Table -1

Rating Respondent
Percentages
5 50%
4 25%
3 25%
2 0
1 0

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You mostly get influenced by the negative messages shown in ad

Table-2
Rating Respondent
Percentages
5 12.5%
4 12.5%
3 12.5%
2 62.5%
1 0

I consider television as the most trustable media for buying surf

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Table-3

Rating Respondent
Percentages
5 50%
4 37.5%
3 0
2 12.5%
1 0

I am mostly influenced by the lady celebrity in the ads for surfs

Table-4

Rating Respondent
Percentages
5 37.5%
4 25%

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3 25%
2 12.5%%
1 0

Banners hoardings related to surf often persuades me to make a purchase

Table-5

Rating Respondent
Percentages
5 0
4 25%
3 25%
2 25%
1 25%

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I am usually influenced by the ads given in magazines about surf

Table-6

Rating Respondent
Percentages
5 0
4 0
3 25%
2 25%
1 50

40
The type of animation used in surf ads helps me in purchasing

Table-7

Rating Respondent
Percentages
5 0
4 25%
3 25%
2 37.5%
1 12.5%

The comparative ad shown during the surf ads makes a good impact in
buying a product

Table-8

Rating Respondent
Percentages
5 37.5%
4 37.5%

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3 0
2 25%
1 0

Window display designs of the retail outlets selling surfs attracts me to


purchase a product

Table-9

Rating Respondent
Percentages
5 0
4
3 50%
2 0
1 50%

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I quite often remember the ads shown on internet while making purchase
especially related to fmcg products like surf

Table-10

Rating Respondent
Percentages
5 0
4 50%
3 25%
2 25%
1 0

CONCLUSION

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As my topic is measuring the advertising effectiveness of surf excel (H.U.L)

and its effect on consumer buying behavior.

Analyze, so after doing some calculation, I reached on this conclusion that

Positive message framing helps in influencing the buying behavior of

customer. There was a high correlation between the advertisement shown

on television and the consumer buying behavior. So we can say that those

people who see surf advertisement on television has more effect on

consumer buying behavior and will most probably buy that product.

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APPENDICES

QUESTIONNAIRE
Name ____________

Gender Male Female

Age

Occupation Service Business Student


Hose Wife

Scoring Key:

5 – Strongly Agree 4–
Agree

3 – Neither Agree nor Disagree 2–


Disagree

1 – Strongly Disagree

Serial No. Questions Respondent’s options


Strongl Agre Neither Disagr Strongl
y e Agree ee y
Agree Nor Disagr
Disagre ee
e
1. You mostly get influenced by
the positive messages shown in
ads.
2. You mostly get influenced by
the negative messages shown in
ads.

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3. I consider television as the
most trustable media for buying
surfs.
4. I am mostly influenced by the
lady celebrity in the ads for
surfs.

5 Banners hoardings related to


surf often persuades me to
make a purchase
6. I am usually influenced by the
ads given in magazines about
surf.
7. The type of animation used in
surf ads helps me in purchasing.
8. The comparative ads shown
during the surf ads make a good
impact in buying a product.
9. Window display designs of
the retail outlets selling surfs
attract me to purchase a
product.
10. I quite often remember the
ads shown on internet while
making purchase especially
related to fmcg products like
surf.

46
References
Lohtia Ritu “The Impact of Content and Design Elements on Banner
Advertising Click-through Rates” (Journal of Advertising Research) vol2007

Harari Te’enj Tali “The importance of product involvement for


predicting advertising effectiveness among young people”
(International Journal of Advertising,) vol 2008

Robinson Helen “Internet advertising effectiveness: The effect of


design on click-through rates for banner ads” (International
Journal of Advertising) vol 2007

Journals Referred
Journals of Marketing

Books

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Business Research method

Marketing Management (Icfai)

Websites
www.hul.co.in

Moneycontrol.com

surfexcel.in

www.icmrindia.org

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