sip report subhransu

8/8/2019 SIP Report Subhransu

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Regional College of Management (Autonomous), Bhubaneswar

This is to certify that Mr. Subhransu Sekhar Acharya has prepared this

project on "SATISFACTION LEVEL OF THE RETAILERS AND

PERCEPTION OF CUSTOMERS ABOUT RED LABEL DUST

TEAµ, under my guidance & supervision for the award of Master of

Business Administration. Wish all success in his future pursuits.

(MR. MUKESH MISHRA)




This is to certify that Mr. Subhransu Sekhar Acharya has prepared this

project on "SATISFACTION LEVEL OF THE RETAILERS AND

PERCEPTION OF CUSTOMERS ABOUT RED LABEL DUST

TEAµ, under my guidance & supervision for the award of Master of

Business Administration. Wish all success in his future pursuits.

(MR. SASWATA DATTA)




RED LABEL DUST TEAµ, being presented as a project for partial

fulfillment of Master of Business Administration at Regional College

of Management Autonomous, Bhubaneswar is original and this has

never been submitted either in part or full for the award of any other

degree to any other institution. The information presented herewith is

true to the best of my knowledge.

(Mr. Subhransu Sekhar Acharya)

MBA, RCM (A), Bhubaneswar

Roll No: 0906247033




First of all I would like to thank Mr. SaswataDatta, ADM, HUL,

Bhubaneswar without whose permission project would have been castle in the

air and who always helped me and provided me with relevant books and data in

the subject to enable to prepare the project. And also I would like to give thank

to Mr. TamalSengupta, Sales Officer,HUL who gave me the insights of FMCG

market.

I am equally grateful to Asst. Prof. Mr. Mukesh Mishra (Faculty, Marketing)

for his valuable suggestion and advice and without whose cooperation this

project could have not been completed.

Lastly but not the least, I pay my gratitude to my parents, family members,

friends, faculty members of RCMAand all executives of SathChidanand Traders,

Bhubaneswar for their moral support and whole hearted co-operation in

drafting this report.

(Mr. Subhransu Sekhar Acharya) MBA, RCM (A), Bhubaneswar

Roll No: 0906247033




intention was to get the insights of FMCG industry and competitive analysis of a

newly launched brand with a highly established brand.

The study gave exposure of several new things which is merely not possible to gain

in the classroom study. This study gave the exposure of the tea industry in India and

the trends in this market. The trends in the customer demands and their expectations

from a brand were studied. This was a really good experience to undertake a project

in HUL which is the largest FMCG Company in India.

This study gave the insights of the challenges that are faced by a newly launched

product in the market and the strategies to be taken to make the product successful

thereby. This report is a humble attempt to sketch the picture of the entire research

conducted in Bhubaneswar.




,

brands of tea. Red Label is one of such veteran brands that has a large customer

pool and one of the top most selling brands. Red Label is a leaf tea variant and quite

famous for its superior quality at a competitive price. Perceiving the opportunity of

penetrating into the dust tea segment, HUL went for a brand extension of Red Label

Leaf and introduced Red Label Dust in the market.

Tata Tea Premium is the market leader in the dust tea segment and due to is long

presence in the market; it has become the Generic Brand. Hence it is a major task

for HUL to create a separate position in the dust tea market as well as compete with

Tata Tea Premium. This lead the researcher to conduct a research to explore the

trends in the dust tea market, measure the satisfaction level of the retailers and the

reach of awareness of the promotional efforts made by HUL.

Satisfaction of the retailers depends on the margin given on the particular item with

respect to that given on its competitor¶s product, different schemes and most

importantly the demand of the product. Similarly the purchase decision of the

customers depends on the different promotional efforts of the company and the

value they derive out of that product. Hence the entire study revolves around these

issues that lead to the success or failure of any product.

The research was conducted in Bhubaneswar. The researcher interacted with both

the retailers and customers to find out different ways for Red Label Dust to penetrate

into the dust tea segment by influencing the purchase decision of the customers.




2 COMPANY PROFILE 14-21

PRODUCT PROFILE 22-24

3 OBJECTIVE AND SCOPE OF THE STUDY 25-26

RESEARCH METHODOLOGY 27-30

4 DATA ANALYSIS AND INTERPRETATION 31-56

5 HYPOTHESIS TESTING 57-62

6 FINDINGS AND SUGGESTIONS 63-69

LIMITATIONS OF THE STUDY 70

7 CONCLUSION 71-72

8 BIBLIOGRAPHY

ANNEXTURE 73-78




CHAPTER-I




,

are becoming very popular all over. Tea is made from the young leaves and leaf

buds of the tea bush Camellia sinensis. Ancient Chinese and Japanese legends

refer to a beverage made from an infusion of dried tea leaves.

In 1833, the East India Company, after losing its legal monopoly of the tea trade

between China and Britain, began to look for other sources of supply. As a result, the

cultivation of tea in India began in 1834, with the planting of wild tea found growing in

Assam in 1823. The tea industry has an important and special place in the Indian

economy. Tea is the country's primary beverage, with almost 85% of total

households in the country consuming tea.

India is the world's largest producer and consumer of tea, with India accounting for

27% of the world tea production. India's expenditure on beverages and processed

foods accounts for 8% of food expenditure in rural areas, and 15% in urban areas.

India is also an important tea exporter, accounting for around 12-13% of world tea

exports.

Further, certain varieties of tea (for example Darjeeling) are grown only in India and

are in great demand across the world. All Darjeeling teas possess the lightness of

flavor and fine coloring that set them apart from all other teas.

India's tea industry exports were estimated at C17.31 billion during FY2006,

accounting for 0.4% of India's exports. In value terms, tea ranks as the fourth-largest

agricultural product export item from India, with exports of around US$410 million in

2004. In terms of employment, the tea industry employs around 1.27 million people

at tea plantations and 2 million people indirectly, of which 50% are women.




(7.7%), and cocoa beans (1.7%).

Tea plantations in India are mainly located in rural hills and backward areas of North-

eastern and Southern States. The North- Eastern region with 82% of area accounts for

76% of total tea production. Major tea growing areas of the country are concentrated in

Assam, West Bengal, Tamil Nadu and Kerala. The other areas where tea is grown to a

small extent are Karnataka, Tripura, Himachal Pradesh, Uttaranchal, Arunachal

Pradesh, Manipur, Sikkim, Nagaland, Meghalaya, Mizoram, Bihar and Orissa.

The tea as an agricultural output earns more money for the country than as a

manufactured product. But this by no means indicates that tea manufacturing is a

nascent concept in India. The only player that has crossed the seven seas to promote

branded tea in form of Poly-packs etc. is Tata Tea. But the fact that there are no other

major house which has promoted itself as a tea manufacturing house provides enough

scope to the houses themselves to improve their status.

HUL, as the number one FMCG Company in India, offers the market with different brands

of tea. Our matter of concern is Red Label Dust which a new launch and an extension of

Red Label which is a leaf tea.

Most new products earn half their sales and profits far earlier in the product life cycle than

company leaders realize. After an early window of opportunity, new products are often

smothered by copycat competitors rushing to market, waning media and analyst attention,

sales channel apathy, price pressures and purchasers unable to distinguish the product

through all the competitive clutter.

With the correct launch, new and innovative products have great advantages early in their

life cycles²competition is light, media and analyst interest is heavy, sales channel




. ,

significant unmet customer need, will not succeed in the market if it is launched under the

wrong brand identity.




brand that, it has turned into a Generic Brand.

Being a new product, Red Label Dust faced some problems in the market. Those

problems created a necessity of a research to be conducted.

y Red Label is known for its Leaf Tea variant. Hence most of the customers

were not aware of its leaf tea variant.

y Tata Tea Premium Dust, as the market leader, dominated Red Label Dust.

y Red Label could not achieve the expected growth rate even though its price

was less than Tata Tea Premium.

y The exact reason behind the gap was quite unclear.

Therefore, the satisfaction level of the retailers and the awareness level of customers

were to be measured. The taste and preference of the customers was also

necessary to be understood.




CHAPTER-II




COMPANY PROFILE




,

consumer goods with strong local roots in more than 100 countries across the globe

with annual sales of about ¼40.5 billion in 2008. Unilever has about 52%

shareholding in HUL.

Hindustan Unilever was recently rated among the top four companies globally in the

list of ³Global Top Companies for Leaders´ by a study sponsored by Hewitt

Associates, in partnership with Fortune magazine and the RBL Group. The company

was ranked number one in the Asia-Pacific region and in India.

The mission that inspires HUL's more than 15,000 employees, including over 1,400

managers, is to 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. It is a mission HUL shares

with its parent company, Unilever, which holds about 52 % of the equity.

Heritage:

HUL¶s heritage dates back to 1888, when the first Unilever product, Sunlight, was

introduced in India. Local manufacturing began in the 1930s with the establishment

of subsidiary companies. They merged in 1956 to form Hindustan Lever Limited (The

company was renamed Hindustan Unilever Limited on June 25, 2007). The company

created history when it offered equity to Indian shareholders, becoming the first

foreign subsidiary company to do so. Today, the company has more than three lakh

resident shareholders.

HUL¶s brands -- like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Sunsilk,

Clinic, Close-up, Pepsodent, Lakme, Brooke Bond, Kissan, Knorr, Annapurna,

Kwality-Walls - are household names across the country and span many categories -

soaps, detergents, personal products, tea, coffee, branded staples, ice cream and




.

Doing Well by Doing Good:

HUL believes that an organization¶s worth is also in the service it renders to the

community. HUL focuses on hygiene, nutrition, enhancement of livelihoods,

reduction of greenhouse gases and water footprint.It is also involved in education

and rehabilitation of special or underprivileged children, care for the destitute and

HIV-positive, and rural development. HUL has also responded in case of nationalcalamities / adversities and contributes through various welfare measures, most

recent being the relief and rehabilitation of the people affected by the Tsunami

disaster, in India.

HUL¶s Project Shakti is a rural initiative that targets small villages populated by less

than 5000 individuals. Through Shakti, HUL is creating micro-enterprise

opportunities for rural women, thereby improving their livelihood and the standard of

living in rural communities. Shakti also provides health and hygiene educationthrough the Shakti Vani program.The program now covers 15 states in India and has

over 45,000 women entrepreneurs in its fold, reaching out to 100,000 villages and

directly reaching to over three million rural consumers.

HUL also runs a rural health program, Lifebuoy SwasthyaChetana. The program

endeavors to induce adoption of hygienic practices among rural Indians and aims to

bring down the incidence of diarrhea. It has already touched 120 million people in

approximately 50, 676 villages across India.

If Hindustan Unilever straddles the Indian corporate world, it is because of being

single-minded in identifying itself with Indian aspirations and needs in every walk of

life.




A clear direction

The four pillars of the vision set out the long term direction for the company ± where

HUL wants to go and how HUL is going to get there:

y HUL works to create a better future every day

y HUL 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.

y HUL will inspire people to take small everyday actions that can add up to a big

difference for the world.

y HUL will develop new ways of doing business that will allow us to double the

size of our company while reducing our environmental impact.

HUL has always believed in the power of our brands to improve the quality of

people¶s lives and in doing the right thing. As our business grows, so do our

responsibilities. HUL recognizes that global challenges such as climate change

concern us all. Considering the wider impact of our actions is embedded in our

values and is a fundamental part of who HUL are.

Purpose & principles

HUL¶s 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."




through the various other ways in which HUL engage with society.

Continuous commitment

HUL is also committed to continuously improving the way HUL manage our

environmental impacts and are working towards our longer-term goal of

developing a sustainable business.

Setting out our aspirations

HUL¶s corporate purpose sets out our aspirations in running our business. It's

underpinned by our code of business Principles which describes the

operational standards that everyone at Unilever follows, wherever they are in

the world. The code also supports our approach to governance and corporate

responsibility.

Working with other s

HUL wants to work with suppliers who have values similar to our own and

work to the same standards HUL does. HUL¶s Business partner code, aligned

to our own Code of business principles, comprises ten principles coveringbusiness integrity and responsibilities relating to employees, consumers and

the environment.

Making a difference thr ough community initiatives

HUL believes that an organization¶s worth beyond its business is captured by the

service it renders to the community. We focus on nutrition, health and hygiene

education, empowering livelihoods and eco-efficiency. We are committed to

responsible leadership by positively impacting India on her most challenging issues.

HUL¶s Goal




Food brands

Home care brands

Personal care brands

Water

Nutrition

Health, hygiene & beauty

Food brandsHUL is one of India¶s leading food companies. Its passion for understanding what

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

brands a popular choice

Brooke Bond 3 RosesPlayful banter, a little mischief, serious conversation« there¶s no

time for young couples like the time spent sharing a cup of 3 Roses.

Annapurna

Partnering with the mom in nurturing her dreams, Annapurna Atta is

aimed at helping her provide wholesome tasty nutrition to her family.

Red LabelIndia¶s favorite cup of tea, the great taste of Red Label brings

people closer together and strengthens relationships.

Brooke Bond Taaza

Brooke Bond Taaza lifts me and unshackles my mind, allowing me

to see and realize possibilities.




«

KissanWith Kissan, good food is loved not shoved!

Knorr Knorr helps families make meal times special, nutritious, tasty

and healthy.

Kwality Wall¶s A good honest scoop of daily pleasure.

LiptonLipton has a range of vitality teas that truly encompass the

goodness of tea.




PRODUCT PROFILE




Life is lived in those moments, one sip at a time.

Key facts:

y Red Label is a 105 year old brand and has tremendous equity and heritage in

the Indian market.

y It is the second largest tea brand in the country.

y It has both leaf and dust variants, as well as a health and immunity variant -

Red Label Natural Care.

y The Dust variant is named as Red Label Dust tea.

Fr om our range

Red Label Leaf Red Label Natural Care Red Label Dust




y Medium sized grains for the correct strength.

y Top leaves for the irresistible aroma.

Stock Keeping Units:

Red Label Dust is available in 4 SKUs. Those are,

1. Trial Pack of C 5

2. 50gm Pack

3. 100gm Pack

4. 200gm Pack

Punch Line:

In the perfect proportion to give that unmatchable taste in every single cup.




CHAPTER-III




competitors, especially Tata Tea Dust which is the market leader in dust tea

segment.

4. To find out the factors that gives the market leader an edge over the product

under consideration.

5. To understand the challenges faced by a newly launched product, more

importantly, in the case of brand extension.

6. To find out different ways to penetrate into the market leaded by a product

that has turned into a Generic Brand.

4.2 Scope of the study

This study emphasizes on the following areas:

1. To find out the position of the product in the market and measure the

performance.

2. To unveil the weak areas or in other the flank areas of the product and thesales force.

3. To find out the awareness level among the customers and reach of the

promotional efforts.

4. To suggest measures that can be taken to compete with the market leader

and penetrate into the market.

5. This study is helpful to that organization for conducting further research.

6. This study helps to make a managerial decision to the company.




H0 : Promotion by retailers and TV has a higher impact on the purchase decision of

customers.

Alt ernative Hypothesis:

H1 : There is no significant role of Retailers and TV in the purchase decision of

customers.

4.3 Type of Research

The research conducted by the researcher was intended to describe the

characteristics of the population and interrelation between them. Hence the research

is Descriptive Research. It is also known as statistical research that describes data

and characteristics about the population or phenomenon being studied. Descriptive

research answers the questions who, what, where, when and how.

Although the data description is factual, accurate and systematic, the researchcannot describe what caused a situation. Thus, descriptive research cannot be used

to create a causal relationship, where one variable affects another. In other words,

descriptive research can be said to have a low requirement for internal validity.

In short descriptive research deals with everything that can be counted and studied.

But there are always restrictions to that. Your research must have an impact to the

lives of the people around you. For example, finding the most frequent disease that

affects the children of a town. The reader of the research will know what to do toprevent that disease thus; more people will live a healthy life.




A research design is considered as the framework or plan for a study that guides as

well as helps the data collection and analysis of data. The research design may be

exploratory, descriptive and experimental for the present study. The exploratory

research design is adopted for this project.

4.4.2 Research Approach

The research worker contacted the respondents personally with well-prepared

sequentially arranged questions. The questionnaire is prepared on the basis of

objectives of the study. Direct contract is used for survey, i.e. contacting retailers and

customers directly in order to collect data.

4.4.3 Sample size

In order to conduct the exploratory research both the retailers and customers were

taken as two different samples. 100 retailers and 100 customers from various part of

Bhubaneswar were included in the research program.

4.4.4 Sampling Area

The research was conducted in various regions of Bhubaneswar. Grocers were

interacted with at their out lets and the customers visiting the outlets for purchase

were interacted at the very place. The reason behind this approach is that, at that

verymoment the customer has a purchase intention in his mind and reason behind

his product preference can be easily unveiled.




Communication and observation are the two basic means used for collecting primary

data. Communication involves questioning the respondents to secure the desired

information by using data collection instrument called µQuestionnaire¶. The

questionnaire used in this study consists of closed-end questions and one open

ended questions.

A. Closed-end questions:

Fixed alternative questions are used in the questionnaire. This consists of,

i. Dichotomous Questions:

The respondent is given a choice between only two alternatives.

ii. Multiple-choice Questions:

The respondents are given a set of alternatives to answer.

B. Open-ended questions:

The customers are asked to give suggestions to improve the service of

Hindustan Unilever Limited in the form of open-ended question at the end of

the questionnaire.

II. Collection of Secondary Data:

Internal and external secondary data is collected for the purpose of study. Internal

secondary data is collected within the company. This data includes company

records, previous research reports and other relevant information.




CHAPTER-IV




u u w

what validity data can be said to indicate any conclusions.

For the analysis of data, a number of closely related operations were performed with

the purpose of summarizing the collected data and organizing them in such a

manner that they answer the research questions. In this study the researcher

followed above process carefully and it is presented in this chapter.

As mentioned earlier, 100 retailers and 100 customers were interviewed and their responses were noted down in the questionnaire. The response were analyzed with

the help of various statistical tools, viz. Pie Chart, Bar Diagram in MS Excel and then

processed to get the desired results.

The hypothesis was tested in Statistical Package for Social Science (SPSS)

program.




Availability No Of Outlets

Available

Not Available 14

INTERPRETATION:

From the above figures we can conclude that the penetration level of Red LabelDust, as a newly launched product, is satisfactory. But the sales force must cover

those outlets in which Tata Tea has a remarkable impact and build up a better

Retailer-Salesman relation that will enable the product to penetrate in the market.

Available Not Available

86

14

No Of Outlets




Demand 17 19.76%

High Margin 5 5.82%

Total 86 100%

INTERPRETATION:

As per the figures, 50% of the retailers have an opinion that they sell Red Label Dust

Tea for the brand name of Red Label Leaf. Only 5.82% retailers feel that Red Label

Dust gives high margin and 19.76% retailers sell the product due to its demand.

24.42% retailers say that they sell the product as the sales persons provide them

with it. Hence, the company must create a demand in the market that will encourage

the retailers to sell the product.

Salesman Visit

24%

Brand Name

50%

Demand

20%

High Margin

6%




Less Margin 1 7.142857143

Irregularity of Salesman 2 14.28571429

Total 14 100

INTERPRETATION:

From the figures in the table, 64.29% retailers don¶t keep Red Label Dust due to less

demand. However, there is no remarkable impact of margin given in the product on

the sale of the product as only 1 retailer gave such response. 14.28% retailers were

unaware of the availability of the product and same number of retailers did not have

the product in their shop due to irregularity in salesman visit.

Unawareness

15%

Less Demand

64%

Less Margin

7%

Irregularity of

Salesman

14%




BRAND VISIBILITY IN OUTLETS

Red Label Dust 23

Tata Tea Premium 26

Both 18

None 33

INTERPRETATION:

In 26% of the outlets visited, Tata Tea Premium alone was on display. Red Label

Dust was displayed in 23% of the outlets. In 18% of the outlets, both the brands were

displayed and 33% of the outlets displayed none of the two brands. In those outlets,

the packets of tea were kept in such shelves which did not play any significant role indisplaying the product.

Hence HUL must take care of visibility in the potential outlets among those 33%

outlets.

Red Label Dust Tata Tea Premium Both None

2326

18

33

VISIBILITY AT POS




1-2 60 69.76744

3-4 17 19.76744

5-6 8 9.302326

7-8 1 1.162791

9-10 0 0

TOTAL 86 100

Average sale of Red Label Dust Tea for every 10kg Sale of Tata Tea Premium dust

is 2.27kg.

70%

20%

9%

1% 0%

1-2

3-4

5-6

7-8

9-10




INTERPRETATION:

The above figures show that, 1-2kg of Red Label Dust is sold in 70% of the outlets

for every 10kg sale of Tata Tea Premium, whereas 20% of the retailers sell 3-4 kg of

the product in the same scale. However, 9% of the respondents sell 5-6kg of Red

Label Dust with respect to 10kg of Tata Tea Dust. Only 1 respondent said that 7-8 kg

of Red Label Dust is sold when he sells 10kg of Tata Tea Premium.

The distribution of the sales is not even. 69.76% of the sales are below the average

sales and 30.24% of the sales are above the average sales. Hence, Red Label Dust

has to gain a significant demand in the market.

Hence the company must introduce some Quantity Purchase Scheme (QPS) to

encourage the retailers to keep more stock.

0

20

40

60

Below Average Above Average

60

26

Number of Outlets




Equal 34

Low 49

INTERPRETATION:

From the above responses, it is clear that none of the retailers believe that the priceof Red Label Dust is high. However, 17% of the retailers think that price of Red Label

Dust is at an average level. 34% respondents say that price of this product it almost

equal to that of Tata Tea Premium and 49% of the respondents said that Red Label

Dust has a lower price than Red Label Dust.

It is obvious that the price of Red Label Dust is lower than that of Tata Tea Premium,

but the variation of the responses is due to the following reason,

HUL has a pricing policy of rounding up the price of any product while

adjusting the volume accordingly.

The respondents who said that the price is not low had a perception that the

quantity must have been lowered a bit.

High, 0Average, 17

Equal, 34

Low, 49




Packaging 12

Advertisement

INTERPRETATION:

None of the customers are dissatisfied with the price of Red Label Dust. However,

42% of the retailers said that the advertisement did not send the proper message to

the customers. 31% retailers believe that Red Label Dust is lacking in taste and 15%

retailers believe that its quality is not competent enough. 12% retailers believe that

the packaging of Red Label Dust is not properly distinguishable from its leaf tea

variant.

Hence a better advertisement and distinguishable packaging can attract more

customers.

0

5

10

15

20

25

30

35

40

45

Quality Price Taste Packaging Advertisement

15

0

31

12

42




case of new product launch.

FACTORS Tata Tea Premium Red Label Dust Indifferent

CONSUMER PROMOTION 57 28 15

TRADE PROMOTION 53 35 12

SALESMAN RELATIONSHIP 38 51 11

AVAILABILITY OF PRODUCT 44 47 9

CREDIT PERIOD 43 35 22

CONSUMER

PROMOTION

TRADE

PROMOTION

SALESMAN

RELATIONSHIP

AVAILABILITY OF

PRODUCT

CREDIT PERIOD

57

53

38

44 43

28

35

51

47

35

1512 11

9

22

Tata Tea Premium Red Label Dust Indifferent




it and rate them at the same level.

Therefore, HUL has to use more consumer promotional tools in order to

attract more customers.

B. Trade Pr omotion: 35% of the retailers believe that Red Label dust is better in

Trade Promotion than Tata Tea Premium, where as 53% of the retailers think

in the reverse way. 12% of the retailers don¶t feel any difference in the various

promotional efforts put forth by the two brands.

Higher margin and better schemes can help Red Label in the Brand Building

Exercise.

C. Salesman Relationship: In this criterion, Red Label Dust has an edge over

Tata Tea Premium. 51% of the retailers believe that they feel more

comfortable in dealing with the salesmen of Red Label Dust Tea, whereas

38% of the retailers feel better in dealing with the salesmen of Tata Tea. 11%

of the retailers feel no difference in the behavior of the two sales forces.

Hence Red Label must maintain its service standard and try to satisfy those

retailers, who are not satisfied with the service like delivery, handling

complains, disseminating information etc.




higher by 47% of the retailers and Tata Tea Premium is rated higher by 44%

of the retailers. 9% of the retailers are indifferent about the availability of the

two products.

Hence, Red Label Dust must be made available at all the outlets better than

Tata Tea Premium. It can be done by introducing a toll free number in the

distribution channel for order booking and placing complaints.

E. Credit Period:Credit period is the time allotted for a retailer to pay back the

amount for the items taken to sell. It has a considerable impact on the amount

of order taken and satisfaction of the retailers.

In this criterion, Tata Tea Premium had an edge over Red Label Dust Tea.

35% of the retailers believe say that they get a longer credit period from HUL

for Red Label Dust; where as 43% of the retailers get a longer credit period

from Tata Tea. 22% of the retailers get the same credit period for the two

products.

Hence Red Label must take care of the potential Shoppe so as to push more

products into the market.




RESPONSE NUMBER OF RESPONDENTS

No Increase 37

Slightly increasing 29

Increasing 10

Depends on the Retailer 24

INTERPRETATION:

From the above question we can interpret that, 37% of the retailers don¶t feel any

change in the demand of the product. However, 29% of the retailers believe that, the

demand for Red Label Dust is slightly increasing and 10% of the retailers feel that

the demand is increasing significantly. 24% of the retailers believe that, they canpush the product to the customers due to their good relations and trustworthiness.

Hence such outlets must be taken care of properly to increase the market share.

No Increase, 37

Slightly

increasing, 29

Increasing, 10

Depends on the

Retailor, 24




.

I. Number of times a brand was ranked 1:

BRAND NUMBER OF TIMES RANKED 1

Tata Tea Premium 76

Red Label Dust 0

Taaza Tea 17

TajMahal 7

INTERPRETATION:

Out of the 100 retailers 76% ranked Tata Tea Premium as the number 1 brand.

Taaza was ranked 1 by 17% of the retailers and 7% ranked TajMahal as the number 1 brand according to demand. However, none of the retailers ranked Red label as

the number 1 brand which is a matter of serious discussion. Hence Tata Tea

Premium is the brand having highest demand in the market.

Tata Tea Premium

76%

Red Label Dust

0%

Taaza Tea

17%

Taj Mahal

7%




Second Taaza Tea

Third Red Label Dust

Fourth TajMahal

Hence we can conclude that, Tata Tea Premium has the highest demand in the

market and Red Label Dust has the third position among the options given to the

retailers.




.

Age Group Male Female Total

Upto 18 3 7 10

19-30 10 15 25

31-50 20 25 45

Above 50 15 5 20

Total 48 52 100

Tea Drinking Habit Number of Respondents

Tea Drinker 93

Non- Tea Drinker 7

Out of the 100 respondents, 93 respondents used to drink tea and 7 respondents

were non tea drinkers. Respondents from different age groups were interacted with

so as to understand the brand preference and brand loyalty stage at different stages

of life. This would help the researcher understand the trend in the market and

recommend different action plans to penetrate into the market.

The original Red Label brand is a leaf tea variant. Hence the major objective of this

study is to measure the awareness level of the respondents regarding Red label

Dust. This includes the reach of the advertisement, effort of the shopkeeper and

visibility in the retail outlet which play an important role in spreading knowledge of

arrival of any new product.




31-50 13 30 2

Above 50 4 15 1

Total 33 60 7

INTERPRETATION:

From the above chart, it is clear that the maximum preference of dust tea is in the

age group of 31-50 and above 50. The ratio of leaf and dust tea in this age group is

13:30 and 4:15 respectively. Whereas, that in the age group of 19-30 is 12:11.

However, the age group of below 18 is indifferent about the variant of tea.

Hence, the advertisement must be so designed that it can attract the consumer pool

of age group above 30.

Upto 18 19-30 31-50 Above 50

4

1213

44

11

30

15

2 2 21

Leaf Tea Dust Tea None




Number of Respondents 49 11 60

INTERPRETATION.

As per the responses, 82% of the customers are brand loyal and 18% customers are

switchers. Hence, Red Label Dust must build a strong image so that the switchers

can be converted into brand loyal.

Brand Loyal

82%

Switcher

18%




Tata Tea Agni 8

Tata Tea Gold 7

Red Label Dust 8

INTERPRETATION:

The number of brand loyal customers is much larger than that of Red Label dust.

Tata Tea Premium has 26 brand loyal customers where as Red Label Dust has only

8. However, Tata Tea Agni and Tata tea Gold are at the similar level of Red Label

Dust. The reason behind the popularity of Tata Tea Premium is its long existence in

the market. Therefore, Red Label Dust must provide attractive incentives to the

customers so as to compete with a brand which has turned into a generic brand in

Dust Tea market.

Tata Tea Premium Tata Tea Agni Tata Tea Gold Red Label Dust

26

8 7 8

Number of Brand Loyal Customers




Never Heard 9 10 19

Heard But Never Used 15 14 29

Buy Occasionally 28 9 37

Regular Basis 8 0 8

Total 60 33 93

INTERPRETATION:

Out of the 93 respondents, 33 respondents are leaf tea consumers and 60

consumers are dust tea consumers. 28 of the dust tea consumers and 9 of the leaf

tea consumers buy Red Label Dust occasionally. 9 of the dust tea consumers and 10of the leaf tea consumers have never heard about the launch of the dust tea variant

of Red Label. And 15 of the dust tea consumers and 14 of the leaf tea consumers

have never shown any interest for purchasing Red Label Dust.

0

5

10

15

20

25

30

35

40

Never Heard Heard But Never

Used

Buy Occasionally Regular Basis

915

28

8

10

14

9

0

Dust Tea Consumer Leaf Tea Consumer




FACTORS NUMBER OF RESPONSES Percentage

Quality 2 4.347826087

Taste 5 10.86956522

Packaging 5 10.86956522

Price 17 36.95652174

Advertisement 7 15

Unavailability of Tata Tea 4 8.695652174

Suggested by Retailer 6 13.04347826

TOTAL 46 100

Quality

4%

Taste

11%

Packaging

11%

Price

37%

Advertisement

15%

Unavailability of

Tata Tea

9%

Suggested by

Retailor

13%




There were two more responses which were not in the questionnaire, but are worth

mentioning. 9% of the customers purchased the product due to the unavailability of

Tata Tea Premium. 13% of the customers purchased the product being suggested

by the retailer.

Hence, retailers should be provided with higher margin and better schemes for a

certain period to put their effort in pushing the product to stabilize it.

Most importantly, the quality and taste must be improvised as its impact is very few

on the customers.




Unawareness 7 10

It is expensive 0 0

Don't Like The Product 0 3

No attractive offer 7 1

Never Thought of Switching 11 2

Leaf Tea Consumer 0 7

INTERPRETATION:

None of the consumers think that Red Label Dust is an expensive product. However,

11 of the dust tea consumers have never thought about switching and 7 think that

Red Label Dust doesn¶t give any attractive offer. 7 of the dust tea consumers and 10

of the leaf tea consumers were unaware of the availability of Red Label Dust. Hence,

it must be the prime objective of HUL to attract more and more customers by

providing more attractive offers.

Unawareness It is

expensive

Don't Like

The Product

No attractive

offer

Never

Thought of

Switching

Leaf Tea

Consumer

7

0 0

7

11

0

10

0

3

12

7

DUST TEA CONSUMERS LEAF TEA CONSUMERS




Magazine 5

Shopkeeper 16

Reference Group 9

INTERPRETATION

From the above figures, it is clear that, television plays an important role in

communicating about the product. 43% of the respondents came to know about Red

Label Dust from TV, 17% from newspaper and 7% from different magazines. Word-

of-mouth could circulate information among 12% of the respondents. However, 21%

of the respondents came to know about the product from the retail outlet. This

communication channel is one of the most important channels for spreading the

knowledge about the existence of any product. Hence, this channel must be

strengthened in order to make the product more popular.

Television43%

Newspaper

17%

Magazine

7%

Shopkeeper

21%

People

12%




CHAPTER-V




numbers are drawn from a standard normal distribution (i.e. 2= 1) with mean = 0,

and some of the numbers are drawn from a standard normal distribution with

unknown mean.

Now let¶s say we take a number out of the hat. There are two hypotheses that are

possible:

y H0: the null hypothesis. The number is from a standard normal distribution

with = 0.

y H A: the alternative hypothesis. The number is not from a standard normal

distribution with = 0.

The art of statistics is in finding good ways of formulating criteria, based on the value

of one more statistics, to either accept or reject the null hypothesis H 0.

Chi-Square Test

A chi-square test (also chi-squared or 2 test) is any statistical hypothesis test in

which the sampling distribution of the test statistic is a chi-square distribution when

the null hypothesis is true, or any in which this is asymptotically true, meaning that

the sampling distribution (if the null hypothesis is true) can be made to approximate a

chi-square distribution as closely as desired by making the sample size large

enough.

If a sample of size n is taken from a population having a normal distribution, thenthere is a well-known result (see distribution of the sample variance) which allows a

test to be made of whether the variance of the population has a pre-determined

value.




Television, newspaper, magazines are the promotional tool intended for mass

audience. The reach of these tools is high and brings fruitful results to the

organization. However, shopkeeper and reference group play a significant role in the

purchase decision of a customer.

The major aim of our study is to correlate the promotional effort of different sources

with the purchase decision of a customer. The data analysis for hypothesis testing

was done with the help of SPSS. Using Chi-Square test the researcher derived

conclusion of this study.

The assumption was that, promotion by retailers and TV has much more impact on

the purchase decision of the customers. Therefore the hypotheses are as follows.

Null Hypothesis:

H0 :Promotion by retailers and TV has a higher impact on the purchase decision of

customers.

Alternative Hypothesis:

H1 :There is no significant role of Retailers and TV in the purchase decision of

customers.




source * Use_status Cross Tabulation

Use_status

Totalregular ocassionally

heard but never

used

source shopkeeper Count 5 7 4 16

% within Use_status 62.5% 18.9% 13.8% 21.6%

tv Count 3 16 12 31


newspaper Count 0 8 5 13

% within Use_status .0% 21.6% 17.2% 17.6%

Magazine Count 0 2 3 5


reference group Count 0 4 5 9


Total Count 8 37 29 74


Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 11.775a 8 .162

Likelihood Ratio 12.551 8 .128

Linear-by-Linear Association 6.190 1 .013

N of Valid Cases 74





newspaper Count 0 8 5 13


Magazine Count 0 2 3 5


reference group Count 0 4 5 9


Total Count 8 37 29 74

a. 9 cells (60.0%) have expected count less than 5. The minimum expected count is .54.

Directional Measures

Value Asymp. Std. Error a

Approx. Tb

Approx. Sig.

Nominal by Nominal Lambda Symmetric .050 .057 .857 .391

source Dependent .047 .064 .710 .478

Use_status Dependent .054 .098 .536 .592

Goodman and Kruskal tau source Dependent .040 .024 .166c

Use_status Dependent .048 .034 .531c

a. Not assuming the null hypothesis.

b. Using the asymptotic standard error assuming the null hypothesis.

c. Based on chi-square approximation




Symmetric Measures

Value Approx. Sig.

Nominal by Nominal Phi .399 .162

Cramer's V .282 .162

Contingency Coefficient .371 .162

N of Valid Cases 74

Since the Phi value is 0.162, the null hypothesis is accepted.

Therefore, we can conclude that the promotional efforts done by retailers and TV has

a significant impact in the purchase decision of the customers.




CHAPTER-VI




The major findings and suggestions are as given below.

ANALYSIS OF QUESTIONNAIRE:

I. Finding: Out of the 86 retailers who are selling Red Label Dust, 50% are

maintaining the stock due to brand name of Red Label Leaf. There is no

significant response of demand and higher margin. Similarly, out of the 14

retailers who did not have Red Label Dust in their outlet, 65% of the retailers said

that they didn¶t keep the stock due to less demand.

Suggestion: Red Label Dust had to increase the customer pull by building a

strong brand image. This can be done by presenting the benefits, assuring

superior quality, making customers aware of the cost effective product and

commitment of value for money.

II. Finding: Issue of availability was not abundant i.e.14.28% only. However, a

single dissatisfied retailer gives birth to many non users of a brand.

Suggestion:Hence every single order must be delivered right on time in right

quantity. This can be facilitated by a Toll Free order booking number . In case

of non delivery or out of stock situations, retailers can directly contact the

company personnel and settle the matter immediately.

III. Finding: Visibility of Tata Tea premium was 3% more than that of Red Label

Dust and 33% of the outlets did not have any of the brands on display.




Premium it was found that the average sale of Red Label Dust Tea for every

10kg Sale of Tata Tea Premium dust is 2.27kg. The distribution of the sales is not

even through out the outlets i.e. 70% of the sales were below average and 30%

below the average sales. The retailers are not getting any incentive or additional

incentive for push marketing which is the major reason behind these figures.

Suggestion: Sales can be increased by the retailers. They are the

representatives of the company in front of the end users. Hence, incentives must

be given to the potential retailers. Here is an example of a scheme that can be

cost effective to the company and motivate the retailers.

HUL has a wide range of products which are sold at almost all the outlets.

The offer is such that if a retailer maintains a particular sales figure (Decided

by HUL) in all the brands that includes Red Label Dust, then they will be given

some prize.

This will not only help Red Label Dust stabilize in the market, but also helpful

in increasing the sales of other products too.

V. Finding: According to the retailers, the major factor for the unsatisfaction of the

customers is Advertisement and Taste.

Advertisement: The advertisement didn¶t send the proper message to the

customers. Most of the customers perceived it as a leaf tea which could not

attract the dust tea consumers.

Taste: Even though the retailers put forth their effort in push marketing, there

was not a significant amount of repeat sales.




. ,Red Label in Consumer Promotion, trade Promotion and credit Period.

a. Consumer Pr omotion: Red Label has not provided any offer for the

customers yet.

b. Trade Pr omotion: Margin on Red Label Dust is not significant enough for

push marketing.

c. Credit Period: Potential retailers are not getting more credit period from HUL

as compared to Tata.

Suggestion: Although it is a contradiction to the Product Life Cycle theory, but

HUL must give some offers on Red Label Dust to stimulate the customers.

Potential traders must be given a longer credit period and higher margin should

be provided to the retailers till the product becomes popular in the market.

VII. Finding:Popularity of dust tea is more in the age group of 31-50. 50% of the

dust tea consumers belong to this age group and 25% of the customers belong to

the age of more than 50.

Suggestion:Hence the advertisement must be so designed that it can stimulate

the customers of the age more than 30. For example, a rainy Sunday with wife

exchanging the experiences of collage days over a sip of Red Label Dust. The

message will be, ´ Red Label Dust: Refreshing Memories, Refreshing

Life.µ This will also be applicable to the customers of age more than 50.

VIII. Finding: Out of the 49 brand loyal customers, 26 customers preferred Tata Tea

Premium where as 8 preferred Red Label Dust. The gap is a bit higher and a

matter of discussion.




being suggested by the retailers, due to unavailability of Tata Tea or for tasting.

Hardly some of them repurchased the item. Hence, the product somewhere lacks

in taste and quality that could not bind all of the customers.

Suggestion:Hence, the quality and taste must be improvised to build a strong

brand image, because the difference in price of Red Label Dust and Tata Tea is

Rs.2 per 100gm. Better quality and taste will lead to customer satisfaction andmotivate the customers to be opinion leaders.

X. Finding:9 of the dust tea consumers were not aware of Red Label Dust and 11

of them have never thought of switching.

Suggestion:Hence brand awareness must be widened in order to give a tough

competition to Tata Tea Premium.

XI. Finding:The Success Factor of retailer as the source of information is much

higher than the other sources. The reach of TV is much higher but penetrating

capacity of retailers is higher than other sources.

Suggestion:Hence, retailers must be motivated for push marketing by providing

them with financial as well as non financial benefits. Non financial benefits

include ³Certificate of Best Seller´ from HUL.




. ,

selling capacity, customer base etc. But in HUL the credit period is same irrespective

of the size, location and customer base of the outlet.

This policy demotivates the retailers to keep more stock and try to sell them by their

effort. Hence a flexible credit policy must be adopted by HUL in order to increase its

good will in the market.

Lock System of HULHUL has a lock system. Due this system, if a retailer fails to pay the bill of any

product within 15 days, then supplies of all the products will be suspended till the

payment of that bill. Some of the retailers were highly dissatisfied due to this system.

Hence there are two options to redress this grievance.

a. The item for which the retailer has not paid the bill should be locked; not

other items.b. Single bill for all the items kept by a retailer. If the retailer fails to pay the

bill, then the supplies will be suspended.

Packaging of Red Label Dust

The packaging of Red Label Dust and Red Label Leaf are quite similar. There is only

a little difference in intensity of the color. While keeping the item in the shelves, the

word ³Dust´ is not visible properly. Due to this kind of packaging most of the

customers perceive it as the leaf tea of Red Label.

Hence a properly distinguishable color must be used for packaging and the word

³Dust´ must be emphasized and placed in such a place on the Top-Left-Corner of the

pack.




form. It may so happen that all the retailers will not send the filled in feed back form,

but the aggrieved retailers will definitely send the form with their complains. This will

help the management maintain a healthy relationship in the retail chain and good will

in the market.

Developing a Better Salesman-Retailer Relationship

Some of the retailers said that the salesmen of HUL are changed very frequently. So

they face a problem in coping with a new salesman. Hence, it would be better if one

sales man visits an outlet as long as possible so as to improve their relationship with

the retailers.




researcher could not widen the study.

The study could not be generalized due to the fact that researcher adapted

personal interview method.

The scorching heat of sun was another problem in collecting the responses

from the customers.

The retailers could not give time when there were customers in the shop.




CHAPTER-VII




susta na ty as we as oca env ronmenta an soc a ssues, es re , n a non-

invasive way. The idea is to nurture an upward spiral of values that is good for the

environment, good for your community, and what the hell, good for the company. In

a way, they act as gatekeepers determining which goods and services to be offered

and how they should be produced.

The satisfaction of the retailers depends on the margin they get on the product with

respect to that they get on the competitors product. Therefore it is a challenge for the

company to provide the retailers with adequate amount of margin, schemes and

other non-financial benefits to motivate them and play an active role in the

distribution channel.

A customer derives value from the product he uses. The repeat purchase depends

on the quality and reliability of the product. Hence the company must improve the

quality and taste of the product so as to influence the purchase decision of the

customer. Otherwise, the effort of the retailers and other promotional material will be

in vain.

However, working with HUL was a great pleasure for the researcher. This research

not only gave exposure to the FMCG market but it was also helpful in understanding

the needs and wants of the customers. The researcher got an insight of the strategic

planning that is to be implemented in the case of a new product launch. Moreover,

this research was a challenge for the researcher and thereby a wonderful

experience.




CHAPTER-VIII




3. The Marketing White Book 2009-10

4. Carvens, Hills, Woodruff Marketing Management.

5. Havaladar, Cavale, Sales and Distribution Management.

6. S.L Gupta, , Sales and Distribution Management.

Web Sites:

1. www.google.co.in

2. www.wikipedia.com

3. www.hul.co.in

4. www.marketingreserch.com

5. www.economictimes.com




(2) Age Group :

(a) Up to 18 [ ]

(b) Between 19 -30 [ ]

(c) Between 31 ± 50 [ ]

(d) Above 50 [ ]

(3) Gender:

(a)Male [ ](b) Female [ ]

(4) Do you consume TEA?

(a) Yes [ ]

(b) No [ ]

(5) If yes, what type of TEA do you prefer?

(a) Dust Tea [ ]

(b) Leaf Tea [ ]

(6) If Dust, Do you prefer any particular brand?

(a) Yes [ ]

(b) No [ ]

(7) If Yes, Which brand?

(a) Taaza Tea [ ] (b) Tata Agni [ ]

(c)Tata Premium Dust [ ] (d) Red Label Dust [ ]




(a) Yes [ ]

(b)No [ ]

(3) If No, what are the factors behind it?

(a)Unawareness [ ]

(b)Less Demand [ ]

(c) Less margin [ ]

(d)Availability of Products [ ]

(e) Other¶s«««««««««««««««««««««««

(4) If yes, what are the factors that motivate you to sale RED LABEL Dust Tea?

(a) High Margin [ ] (b) Demand [ ]

(c) Availability [ ] (d) Brand Name [ ]

(5) If you sell 10kgs of TATA PREMIUM Dust, how much of RED LABEL Dust do you

think you can sell?

(a) Below 5 kg [ ]

(b) 5 kg to 10 kg [ ]

(c) Above 10 kg [ ]

(6) According to you, rate the Brands from 1-4 basing on Demands.

(a) TajMahal [ ]

(b) Taaza Tea [ ]

(d) Tata Tea Premium [ ]

(e)Red Label Dust [ ]




(d)Low [ ]

(8)Compare RED LABEL Dust with TATA TEA PREMIUM Dust and rank these

factors 1 or 2.

RED LABEL DUST TATA TEA PREMIUM

(a) Consumer Promotion [ ] [ ]

(b)Trade Promotion [ ] [ ]

(c) Salesman Relationship [ ] [ ]

(d) Availability of Products [ ] [ ]

(e) Credit Periods [ ] [ ]

(9) On which part customers are not satisfied with RED LABEL Dust Tea?

(a)Quality [ ]

(b) Price [ ]

(c)Taste [ ](d) Packaging [ ]

(e)Advertisement [ ]

(10) How do you find the changing tastes and preferences in customer for RED

LABEL Dust Tea?

(11) Suggestions:

sip report subhransu

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