Analysis of Consumer Behaviour & measuring customer satisfaction

SUBMITTED BY:-

PRAVESH GURBANI
IICS,PUNE

INDIRA INSTITUTE OF CAREER STUDIES , PUNE 1

 Analysis of Consumer Behaviour & measuring customer satisfaction

ACKNOWLEDGEMENT

I have had a golden opportunity of being a part of Eureka Forbes Ltd .towards
fulfilling the requirement of summer training. The helping hand co-operative and
easy by which I was accepted to this family was by itself hearing experience.

I am greatly obliged to Ms.Sama kulkarni Director, II CS, Pune for providing me

the right kind of opportunity and facilities to complete this venture.

My heartfelt thanks to my respected Faculty Guide namely Prof. Vijay Rao

without his continuous help the project would not have been materialized in the
present form. His valuable suggestions helped me at every step.

I take this opportunity to express our graduate towards the HR division as whole.

I am extremely thankful to Mr. Shrijith Regional Head of Eureka Forbes Ltd. for
this kind permission to carry out the study for the organization.

A mere thank would be an inadequate world to express my true gratitude towards

Mr. Ashish Tondon & Ms. Betsy Varghese. HRD officer; he has been guiding
force behind the fulfillment of project. I would be failing in our duty if I don't thank
all staff member of BSL Ltd. for sharing their precious time and knowledge with
me.

(Pravesh)

INDIRA INSTITUTE OF CAREER STUDIES , PUNE 2

 Analysis of Consumer Behaviour & measuring customer satisfaction

||****************** CONTENTS ******************||

Sr. No. TOPIC Page No.

1. Introduction of Consumer Durable industry 6-8

2. History of Eureka Forbes Ltd. 9-13

3. Overview of Eureka Forbes Ltd. 14-16

4. Eureka Forbes Ltd. partnerships /company/ Brand 22-28

5. Introduction of Eureka Forbes Ltd. 29-34

6. Current scenario 35-40

7. SWOT analysis 41-42

8. Objective, Findings 58-62

9. Limitation Of Study 63-64

10. Recommendations 65-67

11. Bibliography 70-71

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 Analysis of Consumer Behaviour & measuring customer satisfaction

Introduction
Of
Consumer Durable Industry
Before the liberalization of the Indian economy, only a few companies like Kelvinator,
Godrej, Allwyn, and Voltas were the major players in the consumer durables market,
accounting for no less than 90% of the market. Then, after the liberalization, foreign
players like LG, Sony, Samsung, Whirlpool, Daewoo, Aiwa came into the picture. Today,
these players control the major share of the consumer durables market.
Consumer durables market is expected to grow at 10-15% in 2007-2008. It is growing
very fast because of rise in living standards, easy access to consumer finance, and wide
range of choice, as many foreign players are entering in the market.
On the flip side, the presence of a large number of players in the consumer durables
market sometimes results in excess supply.

The top 10 players in consumer durables sector are:

• Nokia India
• LG Electronics India Ltd.
• Philips India
• Titan Industries
• Samsung India Electronics
• Whirlpool Appliances
• Siemens
• Sony India
• Videocon Industries
• Blue star

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 Analysis of Consumer Behaviour & measuring customer satisfaction

History
Of
Eureka Forbes
Eureka Forbes, part of the Shapoorji Pallonji Group's Forbes Gokak based in
Mumbai is an Indian consumer appliances company. Eureka Forbes was the first to
introduce domestic water purifiers - the Aquaguard - model - as well as vacuum cleaners
to India in the 1980s The company operates in over 92 cities in India and employs over
6,000 individuals.

To introduce previously unknown products to a society in which nationwide commercial

campaigns were impossible, the company pioneered direct selling. The corps of suit-clad
Eureka Forbes salesmen were a tremendous success. They are now Asia's largest direct
selling organisation with a 5,000 strong direct sales force touching 1.25 million Indian
homes and adding 1,500 customers daily.Such was the success of Eureka Forbes that
Aquaguard has become a synonym for water purifier in India.

1982 - Eureka Forbes, started in 1982, which depended on technology provided by

Sweden for making vacuum cleaners and air purifiers, has grown into a Rs.800-crore
company employing nearly 8000 people, they pointed out. The company is the largest
direct selling organisation and has been considered as one among the most admired
consumer durable companies in the country. The company has also drawn up plans for
diversification to manufacture products aimed at 'smart homes /safe homes.

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 Analysis of Consumer Behaviour & measuring customer satisfaction

Overview
Of
Eureka Forbes
COMPANY OVERVIEW

Eureka Forbes, Ltd. offers water purification systems, vacuum cleaners, and air purifiers.
The company also offers security solutions, including home security systems, intrusion
alarm systems, access control systems, fire alarm systems, and surveillance systems. In
addition, it offers industrial solutions, such as industrial water purifiers, commercial and
industrial vacuum cleaners, hard floor cleaning and maintenance machines, high pressure
cleaners, and cleaning and hygiene products. Eureka Forbes offers its products through
dealers and institutional sales network. The company was incorporated in 1931 and is
based in Mumbai, India. Eureka Forbes, Ltd. operates as a subsidiary of Forbes &
Company Ltd.

Eureka Forbes
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 Analysis of Consumer Behaviour & measuring customer satisfaction

Partnerships
Brand
Eureka Forbes Partnerships

International Partnership Alliance

Lux and its partner companies Eureka Forbes India, AMC Classic South Africa, Aerus
Electrolux US, and the Forbes Lux Group Switzerland today employ over 16'000 people
in sales, administration, research and development. With a customer base of over 20
Million Lux and its alliance partners promote some of the world's leading brands in direct
sales. The Lux Partnership Alliance with its unique spirit and its focus on people and the
direct sales of innovative products today runs sales operations in many parts of the world.

Lux International AMC

Eureka Forbes Forbes Lux Aerus
Cookware

Western and Eastern

Asia Pacific, Eastern Europe, North
Europe, Africa, South South Africa,
Middle East Africa, Asia America
America Mauritius

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 Analysis of Consumer Behaviour & measuring customer satisfaction

Products

>> Aquaguard Total SENSA

>> Aquaguard Total Atom

>> Aquaguard Classic >> Aquaguard Integra Hi-Life

>> Aquaguard Compact

>> Aquaguard Total Reviva

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 Analysis of Consumer Behaviour & measuring customer satisfaction

>> Aquaguard Total INFINITI

>> Aquaguard Booster

>> Aquaguard Hi-Flo >> Aquaguard Total RO PROTEC+

Introduction
Of
Eureka Forbes Ltd.
Eureka Forbes - Starting From The Scratch

Eureka Forbes followed the globally 'tried and tested' direct selling route for marketing its
products in India, thus becoming one of the first direct selling companies in India.
Vacuum cleaners and water purifiers were rather new concepts for Indian consumers,
who had till then followed only the traditional methods of cleaning and filtering.

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 Analysis of Consumer Behaviour & measuring customer satisfaction

Therefore, Eureka Forbes had to first establish the concept of vacuum cleaners and water
purifiers in India before it could sell 'Eureka' as a brand. The company believed that its
core strength was its people. It employed dynamic, highly motivated individuals, called
'Eurochamps,' who projected the image of 'The friendly man from Eureka Forbes.'

Thus, for the average Indian consumer, Eureka Forbes became synonymous with the
smartly dressed salesman who came to their houses and cleaned up things in a jiffy or
showed how air/water purifiers were indispensable. Eurochamps initially targeted the
metros but soon began visiting smaller cities and towns also.

CURRENT SCENARIO

The consumer durables market in India is valued at US $ 4.5 billions currently. In 2006,
microwave ovens and air conditioners registered a growth of about 25%. Frost-free
refrigerators have registered significant growth as many urban families are replacing their
old refrigerators. Refrigerator sales amounted to 4.2 millions in 2006, whereas the
production of the refrigerators went up by 17% as compared to the preceding year.
Washing machines, which have always seen poor growth, have seen reasonable growth in
2006. More and more Indians are now buying electrical appliances due to change in
electricity scenario. The penetration level of color televisions (CTVs) is expected to
increase 3 times by 2007.

Swot Analysis

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 Analysis of Consumer Behaviour & measuring customer satisfaction

OBJECTIVE
Objective

CONSUMER BEHAVIOR:
THE PSYCHOLOGY OF MARKETING

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 Analysis of Consumer Behaviour & measuring customer satisfaction

The objectives of this project report are:

The study of consumers helps firms and organizations improve their marketing strategies
by understanding issues such as how

• The psychology of how consumers

think, feel, reason, and select between
different alternatives (e.g., brands, products);
• The psychology of how the consumer
is influenced by his or her environment (e.g.,
culture, family, signs, media);
• The behavior of consumers while
shopping or making other marketing
decisions;
• Limitations in consumer knowledge or
information processing abilities influence
decisions and marketing outcome;
• How consumer motivation and
decision strategies differ between products
that differ in their level of importance or
interest that they entail for the consumer;
and
• How marketers can adapt and improve
their marketing campaigns and marketing
strategies to more effectively reach the
consumer.

There are four main applications of consumer behavior:

• The most obvious is for marketing

strategy—i.e., for making better marketing
campaigns. For example, by understanding
that consumers are more receptive to food
advertising when they are hungry, we learn
to schedule snack advertisements late in the

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Analysis of Consumer Behaviour & measuring customer satisfaction

afternoon. By understanding that new

products are usually initially adopted by a
few consumers and only spread later, and
then only gradually, to the rest of the
population, we learn that (1) companies that
introduce new products must be well
financed so that they can stay afloat until
their products become a commercial success
and (2) it is important to please initial
customers, since they will in turn influence
many subsequent customers’ brand choices.
• A second application is public policy.
In the 1980s, Accutane, a near miracle cure
for acne, was introduced. Unfortunately,
Accutane resulted in severe birth defects if
taken by pregnant women. Although
physicians were instructed to warn their
female patients of this, a number still
became pregnant while taking the drug. To
get consumers’ attention, the Federal Drug
Administration (FDA) took the step of
requiring that very graphic pictures of
deformed babies be shown on the medicine
containers.
• Social marketing involves getting
ideas across to consumers rather than selling
something. Marty Fishbein, a marketing
professor, went on sabbatical to work for the
Centers for Disease Control trying to reduce
the incidence of transmission of diseases
through illegal drug use. The best solution,
obviously, would be if we could get illegal
drug users to stop. This, however, was
deemed to be infeasible. It was also
determined that the practice of sharing
needles was too ingrained in the drug culture
to be stopped. As a result, using knowledge
of consumer attitudes, Dr. Fishbein created a
campaign that encouraged the cleaning of
needles in bleach before sharing them, a goal
that was believed to be more realistic.
• As a final benefit, studying consumer
behavior should make us better consumers.

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 Analysis of Consumer Behaviour & measuring customer satisfaction

Common sense suggests, for example, that if

you buy a 64 liquid ounce bottle of laundry
detergent, you should pay less per ounce
than if you bought two 32 ounce bottles. In
practice, however, you often pay a size
premium by buying the larger quantity. In
other words, in this case, knowing this fact
will sensitize you to the need to check the
unit cost labels to determine if you are really
getting a bargain.

There are several units in the market that can be analyzed. Our main thrust in this course
is the consumer. However, we will also need to analyze our own firm’s strengths and
weaknesses and those of competing firms. Suppose, for example, that we make a product
aimed at older consumers, a growing segment. A competing firm that targets babies, a
shrinking market, is likely to consider repositioning toward our market. To assess a
competing firm’s potential threat, we need to examine its assets (e.g., technology, patents,
market knowledge, awareness of its brands) against pressures it faces from the market.
Finally, we need to assess conditions (the marketing environment). For example, although
we may have developed a product that offers great appeal for consumers, a recession may
cut demand dramatically.

Information Search and Decision Making

Problem Recognition.? One model of consumer decision making involves several steps.
The first one is problem recognition??ou realize that something is not as it should be.?
Perhaps, for example, your car is getting more difficult to start and is not accelerating
well.??? The second step is information search??hat are some alternative ways of solving
the problem?? You might buy a new car, buy a used car, take your car in for repair, ride
the bus, ride a taxi, or ride a skateboard to work.? The third step involves evaluation of
alternatives.? A skateboard is inexpensive, but may be ill-suited for long distances and
for rainy days.?? Finally, we have the purchase stage, and sometimes a post-purchase
stage (e.g., you return a product to the store because you did not find it satisfactory).? In
reality, people may go back and forth between the stages.? For example, a person may
resume alternative identification during while evaluating already known alternatives.

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Analysis of Consumer Behaviour & measuring customer satisfaction

INDIRA INSTITUTE OF CAREER STUDIES , PUNE 15

 Analysis of Consumer Behaviour & measuring customer satisfaction

FINDINGS
ABOUT Eureka
Forbes Ltd.
Questionarre:

Name: Address: Type of house: Flat / Bunglow

1. What is your source of drinking water ?

a) Borewell b) Corporation Water c) Can Water

2. Are you satisfied with the water which you drink daily ?

a) Yes b) no

3. What are the precautions do you take to purify the water ?

a) Boiling b) Purifier c) No method

4. Have your any family member been suffering / suffered from any disease?

a) Yes b) no

5. Do you know that unpurified water causes 80% diseases?

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 Analysis of Consumer Behaviour & measuring customer satisfaction

a) Yes b) no

6. What is your monthly medical expenses {in Rs.} ?

a) 250 to 500 b) 500 to 750 c) 750 to 1000 d) >1000

7. Do you have a water purifier ?

a) Yes b) no

8. If no , what are the reasons of not having water purifier ?

9. What are the criteria you will look for while buying a water purifier?

a) Features b) Price c) Benefits d) Brand

10.What are the different brands of Water Purifier you are aware of ?

a) Pure it b) Aquaguard c) Zero / B d) Kent

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 Analysis of Consumer Behaviour & measuring customer satisfaction

2. Are you satisf

Finding: People don’t understand the level of satisfaction, that’s why they
replied as such apart from this Satellite is the most educated area so here I found
most satisfaction.

50
3. What are the
45
a) Boiling 40
35
Finding: Most of the people of Naroda area don’t use purifiers as lack of knowledge
of water related problems as we can see the people of satellite have this knowledge.

30
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Analysis of Consumer Behaviour & measuring customer satisfaction

4. Have your an

Finding: That is the reason why we found maximum people suffering

in Naroda

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 Analysis of Consumer Behaviour & measuring customer satisfaction

5. Do you know
a
Finding: This is the most interesting question where we saw people do not know that
80% diseases are caused by unpurified water.

50
45
6. What
40
a)
352
Finding: We can tell people that you can save your general medical expenses by
using water purifier (Creating need)

INDIRA INSTITUTE OF CAREER STUDIES , PUNE

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Analysis of Consumer Behaviour & measuring customer satisfaction

8. If no , wh

Finding: People who know about the water related problems they using water
purifier certainly. Others are giving their own dramatic answer

• No nee
• No req
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Analysis of Consumer Behaviour & measuring customer satisfaction

9. What are

Finding : No matter be it any area, all other criteria are following benefits. In
advanced area I saw people are opting for Brand as well.

• Benefit
10.What are the d

a) Pure it
Finding : Aquaguard is nearly have become synonyms for water purifier but in
advertising,(Television Commercials)people Re also observing brands like
KENT, WHIRLPOOL,PURE IT etc..

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 Analysis of Consumer Behaviour & measuring customer satisfaction

LIMITATION
OF
STUDY

LIMITATIONS

The present study is subjected to following LIMITATIONS.

1. Method of data collection was through personal interview and therefore

bias becomes a major limitation.

2. Due to the time constraints all the customers were not covered.

3. The sample was restricted to 50 customers, which may restrict the scope
and completion of study.

4. Owing to their pre occupation some customers were unable to answer the
complete questionnaire.

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 Analysis of Consumer Behaviour & measuring customer satisfaction

RECOMMENDATION
Recommendations:

In this section I would be giving some recommendations on the basis of the survey
work and it’s findings plus on the basis of some general knowledge about the area
where the survey work was done:
Overall Eureka Forbes as a brand is tremendous and the customer are satisfied by
the quality, style, design, color and all other features provided by Eureka Forbes.
But still there are minor areas where Eureka Forbes is still lacking…

Recommendations are:

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 Analysis of Consumer Behaviour & measuring customer satisfaction

BIBLIOGRAPHY
Bibliography

This section throws light upon those internet sites and books from where help has
been taken from to make this project report (not in entirely). These have
been listed below:

Internet sites:

 www.eurekaforbes.co.in

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 Analysis of Consumer Behaviour & measuring customer satisfaction

 www.google.co.in
 www.wikipedia.com

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