A STUDY ON CUSTOMER SAT SATISFACTION ISFACTION ABOUT P&G AND HUL
A final project report Submitted to
Punjab Technical University, Jallandhar (India)
In fulfillment of the reuirements to the de!ree of
"aster of #usiness Administration Administration ("#A) Submitted #y $arpreet Sin!h %oll &o' *+ Submitted To "r' -eepa. Sood
Institute of "ana!ement Studies #haddal Technical /ampus, %opar (Pb)'
ACKNOWLEGEMENT
0irst of all the researcher 1ould li.e to than. the supreme po1er, the almi!hty !od, 1ho is the one 1ho has al1ays !uided me to 1or. on the ri!ht path of my life' The researcher 1ould li.e to e2press 1ord of than.s to all those 1ho have provided her 1ith sincere advice and information durin! the course ' It 1as indeed a !reat pleasure 1or. in a very cooperative, enthusiastic and learnin! atmosphere at I"S #haddal' #had dal' The researcher 1ould also li.e to e2press her sincere than.s to 0aculty 3uide, "r' -eepa. Sood for her unstintin! !uidance and support throu!hout the project' She has been a !reat source of motivation to researcher' She has provided me .no1led!e 1hich 1ill definitely help me to enrich my career and help me to perform better in future'
Harpreet Sing
ACKNOWLEGEMENT
0irst of all the researcher 1ould li.e to than. the supreme po1er, the almi!hty !od, 1ho is the one 1ho has al1ays !uided me to 1or. on the ri!ht path of my life' The researcher 1ould li.e to e2press 1ord of than.s to all those 1ho have provided her 1ith sincere advice and information durin! the course ' It 1as indeed a !reat pleasure 1or. in a very cooperative, enthusiastic and learnin! atmosphere at I"S #haddal' #had dal' The researcher 1ould also li.e to e2press her sincere than.s to 0aculty 3uide, "r' -eepa. Sood for her unstintin! !uidance and support throu!hout the project' She has been a !reat source of motivation to researcher' She has provided me .no1led!e 1hich 1ill definitely help me to enrich my career and help me to perform better in future'
Harpreet Sing
TABLE OF CONTENTS Seria! n"#
T"pi$
Page n"#
'
Introduction to industry
456
+'
7bjective of the study
8
9'
%evie1 of literature
:
9''
%esearch methodolo!y
+4
'
-ata Analysis
+
'
;imitations
9+
*'
0indin!s
99
6'
Su!!estions
9
8'
/onclusion
9
:'
#iblio!raphy
9*
4'
96
INTRODUCTION OF THE INDUSTRY
0ast5movin! consumer !oods (0"/3) or consumer pac.a!ed !oods (/P3) are products that are sold uic.ly and at relatively lo1 cost' =2amples include non5durable !oods such as soft drin.s, toiletries, over5the5counter dru!s, processed foods and many other consumables' In contrast, durable !oods or major appliances such as .itchen appliances are !enerally replaced over a period of several years' 0"/3 have a short shelf life, either as a result of hi!h consumer demand or because the product deteriorates rapidly' Some 0"/3s, such as meat, fruits and ve!etables, dairy products, and ba.ed !oods, are hi!hly perishable' 7ther !oods, such as alcohol, toiletries, pre5pac.a!ed foods, soft drin.s, chocolate, candies, and cleanin! products, have hi!h turnover rates' The sales are sometimes influenced by some holidays and season' Thou!h the profit mar!in made on 0"/3 products is relatively small (more so for retailers than the producers>suppliers), they are !enerally sold in lar!e uantities? thus, the cumulative profit on such products can be substantial' 0"/3 is probably the most classic case of lo1 mar!in and hi!h volume business' The fast movin! consumer !oods (0"/3) se!ment is the fourth lar!est sector in the Indian economy' The mar.et si@e of 0"/3 in India is estimated to !ro1 from US 94 billion in +4 to US 6 billion in +48' 0ood products is the leadin! se!ment, accountin! for 9 per cent of the overall mar.et' Personal care (++ per cent) and fabric care (+ per cent) come ne2t in terms of mar.et share' 3ro1in! a1areness, easier access, and chan!in! lifestyles have been the .ey !ro1th drivers for the sector'
What are FMCG goods?
0"/3 !oods are popularly .no1n as consumer pac.a!ed !oods' Items in this cate!ory include all consumables (other than !roceries>pulses) people buy at re!ular intervals' The most common in the list are toilet soaps, deter!ents, shampoos, toothpaste, shavin! products, shoe polish, pac.a!ed foodstuff, and household accessories and e2tends to certain electronic !oods' These items are meant for daily of freuent consumption and have a hi!h return' Rural – set to rise
%ural areas e2pected to be the major driver for 0"/3, as !ro1th continues to be hi!h in these re!ions' %ural areas sa1 a * per cent, as a!ainst + per cent rise in urban areas' "ost companies rushed to capitali@e on this, as they uic.ly 1ent about increasin! direct distribution and providin! better infrastructure' /ompanies are also 1or.in! to1ards creatin! specific products specially tar!eted for the rural mar.et' The 3overnment of India has also been supportin! the rural population 1ith hi!her minimum support prices ("SPs), loan 1aivers, and disbursements throu!h the &ational %ural =mployment 3uarantee Act (&%=3A) pro!ramme' These measures have helped in reducin! poverty in rural India and !iven a boost to rural purchasin! po1er'
$ence rural demand is set to rise 1ith risin! incomes and !reater a1areness of brands' Urban trends
Bith rise in disposable incomes, mid5 and hi!h5income consumers in urban areas have shifted their purchasin! trend from essential to premium products' In response, firms have started enhancin! their premium products portfolio' Indian and multinational 0"/3 players are levera!in! India as a strate!ic sourcin! hub for cost5competitive product development and manufacturin! to cater to international mar.ets'
Top Companies
Accordin! to the study conducted by A/ &ielsen, *+ of the top 44 brands are o1ned by "&/s, and the balance by Indian companies' 0ifteen companies o1n these *+ brands, and +6 of these are o1ned by $industan Unilever' The top ten India FMCG brands are:
' $industan Unilever ;td' +' IT/ (Indian Tobacco /ompany) 9' &estlC India '3/""0 (A"U;) -abur India *'Asian Paints (India) 6'/adbury India 8'#ritannia Industries :'Procter D 3amble $y!iene and $ealth /are 4'"arico Industries What the millenniums expect
Accordin! to a study by T"B and "ar.etin! Sciences that surveyed +,444 people across different a!e !roups ran!in!, youn! consumers are the most ErationalF and li.ely to spend more time 1ei!hin! up potential purchases' The survey also su!!ests that youn!er people are usin! recommendations from their peers about products and services in order to ma.e rational purchase decisions' Accordin! to the study, shoppers a!ed 8 to + are 6 per cent more li.ely to use recommendations on social media than shoppers a!ed + and over' Another .ey factor today is G speed' TodayHs consumer 1ants pac.a!ed !oods that 1or. better, faster, and smarter' The need for speed trend hi!hli!hts the importance of speed as a potentially decisive purchase factor for pac.a!ed !oods products in a 1orld 1here distinctions bet1een products are shrin.in!'
Koun!er consumers e2press the !reatest need for speed, not a hu!e surprise for the Smartphone !eneration' -ata monitorFs +49 /onsumer Survey found that youn!er consumers those in the 5+ year old a!e !roup 1ere t1ice as li.ely to say that results are achieved uic.ly has a very hi!h amount of influence on their health and beauty product choices than consumers in the oldest a!e !roup, those a!ed * or older' Speed matters, and +4 1ill almost certainly see the introduction of ne1 !ame5chan!in! timesavers' Road head
0"/3 brands 1ould need to focus on %D- and innovation as a means of !ro1th' /ompanies that continue to do 1ell 1ould be the ones that have a culture that promotes usin! customer insi!hts to create either the ne2t !eneration of products or in some cases, ne1 product cate!ories' 7ne area that 1e see !lobal and local 0"/3 brands investin! more in is health and 1ellness' $ealth and 1ellness is a me!a trend shapin! consumer preferences and shoppin! habits and 0"/3 brands are listenin!' ;eadin! !lobal and Indian food and bevera!e brands have embraced this trend and are focused on creatin! ne1 emer!in! brands in health and 1ellness' Accordin! to the P1/50I//I report Binds of chan!e, +49L the 1ellness consumer, nutrition foods, bevera!es and supplements comprise a I&% billion to 4 billion mar.et in India, is !ro1in! at a /A3% of 4 to +M'
Financial !tatus
The consumer durables mar.et is e2pected to reach US +' billion in +4 and US +4'* billion by +4+4' Urban mar.ets account for the major share (* per cent) of total revenues in the consumer durables sector in India' There is a lot of scope for !ro1th from rural mar.ets 1ith consumption e2pected to !ro1 in these areas as penetration of brands increases' Also demand for durables li.e refri!erators as 1ell as consumer electronic !oods are li.ely to 1itness !ro1in! demand in the comin! years in the rural mar.ets as the !overnment plans to invest si!nificantly in rural electrification'
The 0"/3 sector has !ro1n at an annual avera!e of about per cent over the last decade' The overall 0"/3 mar.et is e2pected to increase at (/A3%) of '6 per cent to touch US 4' billion durin! +4+5+4+4, 1ith the rural 0"/3 mar.et anticipated to increase at a /A3% of 6'6 per cent to reach US 44 billion durin! +4+5+4+'0ood products is the leadin! se!ment, accountin! for 9 per cent of the overall mar.et' Personal care (++ per cent) and fabric care (+ per cent) come ne2t in terms of mar.et share' 3ro1in! a1areness, easier access, and chan!in! lifestyles have been the .ey !ro1th drivers for the consumer mar.et' The 3overnment of IndiaHs policies and re!ulatory frame1or.s such as rela2ation of license rules and approval of per cent forei!n direct investment (0-I) in multi5 brand and 44 per cent in sin!le5brand retail are some of the major !ro1th drivers for the consumer mar.et'
INTRODUCTION OF COMPANIES
"industan Unile#er $imited
In the summer of 888, visitors to the Nol.ata harbour noticed crates full of Sunli!ht so ap ba rs , embossed 1ith the 1ords "a de in =n!land by ;ev er #roth ers' Bith it, be!an an era of mar.etin! branded 0ast "ovin! /onsumer 3oods (0"/3) Soon after follo1ed ;ifebuoy in 8: and other famous brands li.e Pears, ;u2 and Oim' Oanaspati 1as launched in :8 and the famous -alda brand came to the mar.et in :96'In :9, Unilever set up its first Indian subsidiary, $industan Oanaspati "anufacturin! /ompany, follo1ed by ;ever #rothers India ;imited (:99) and United Traders ;imited (:9)' These three companies mer!ed to form $U; in &ovember :*? $U; offered 4M of its euity to the Indian public, bein! the first amon! the forei!n subsidiaries to do so' Unilever no 1 ho lds + ' 4M e ui ty in the company' The rest of the shareholdin! is distributed amon! about 9*4,*6 individual shareholders and financial institutions' $industan Unilever ;imited ($U;) is IndiaHs lar!est 0ast "ovin! /onsumer 3oods /ompany 1ith a herita!e of over 6 years in India and touches the lives of t1o out of three Indians'$U; 1or.s to create a better future every day and helps people feel !ood, loo. !ood and !et more out of life 1ith brands and services that are !ood for them and !ood for others' B it h o ve r 9 b ra n ds s pa n ni n! + 4 d is ti n ct c at e! o ri es s uc h a s s oa p s, d e t e r ! e n t s , shampoos, s.in care, toothpastes, deodorants, cosmetics, tea, coffee, pac.a!ed foods, ice cream, and 1ater purifiers, the /ompany is a part of the everyday life of millions of consumers across India' Its portfolio includes leadin! household brands such as ; u2 , ; if eb u oy, S ur f = 2c el , % in , Bh ee l, 0 ai r D ; ov el y, P on dFs, Oas el in e, ;a .mC, - o v e , / l i n i c P l u s , S u n s i l . , P e p s o d e n t , / l o s e u p , A 2 e , # r o o . e # o n d , # r u , N n o r r, Nissan, N1ality BallFs and Pureit' T h e / o m p a n y h a s o v e r * , 4 4 4 e m p l o y e e s a n d h a s a n a n n u a l t u r n o v e r o f a round %s':, 44 crores (financial year +44 5 +4)' $U; is a subsidiary of Unilever, one of the 1orldFs leadin! suppliers of fast movin! consumer !oods 1ith stron! local roots in more than 44 countries across the !lobe 1ith annual sales of about billion in +4' Unilever has about +M shareholdin! in $U;' $industan Unilever ;imited is IndiaHs lar!est 0ast "ovin! /onsumer 3oods (0"/3) /ompany' It is present in $ome D Personal /are and 0oods D #evera!es cate!ories'$U; and 3roup companies have about ,444 employees, includin! +44 mana!ers' The fund amen tal pri nc ip le det erm in in ! th e or !a ni @at io n st ruc tu re is to in fu se sp ee d an d fl e2ib il it y in decision5ma.in! and implementation, 1ith empo1ered mana!ers across the companyFs nation1ide operations'
$industan Unilever ;imited ($U;) is an Indian consumer !oods company based in "umbai, "aharashtra' It is o1ned by An!lo5-utch company Unilever 1hich o1ns a *6M controllin! share in $U; as of "arch +4 and is the holdin! company of $U;'Q+R $U;Hs products include foods, bevera!es, cleanin! a!ents, personal care products and 1ater purifiers' $U; 1as established in :99 as ;ever #rothers and, in :*, became .no1n as $industan ;ever ;imited, as a result of a mer!er bet1een ;ever #rothers, $industan Oanaspati "f!' /o' ;td' and United Traders ;td' It is headuartered in "umbai, India and employs over *,444 1or.ers,Q+R 1hilst also indirectly helpin! to facilitate the employment of over *,444 people' The company 1as renamed in June +446 as $industan Unilever ;imited' $industan UnileverHs distribution covers over + million retail outlets across India directly and its products are available in over *' million outlets in the country' As per &ielsen mar.et research data, t1o out of three Indians use $U; products' %rands
$U; is the mar.et leader in Indian consumer products 1ith presence in over +4 consumer cate!ories such as soaps, tea, deter!ents and shampoos amon!st others 1ith over 644 million Indian consumers usin! its products' Si2teen of $U;Hs brands featured in the A/&ielsen #rand =uity list of 44 "ost Trusted #rands Annual Survey (+4), carried out by #rand =uity, a supplement of The =conomic Times' The most trusted brands from $U; in the top 44 list (their ran.in!s in brac.ets) areL ;u2 (*), Surf =2cel (6), /linic Plus (8), %in (9), ;ifebuoy (), /lose up (+), PondHs (++), Pepsodent (+), 0air D ;ovely (+:), -ove (94), Sunsil. (9), Oim (8), Bheel (*6), Oaseline (64),Pears (68), ;a.me (:)' The latest launches for $industan Unilever includeL Nnorr /hinese &oodles, Sche@1an and $ot D Spicy, ;a.me Absolute Sculpt %an!e, ;a.me ;ip ;ove, "a!num /hoco /appuccino and A2e 3old Temptation' The Institute of /ompetitiveness, India, has reco!ni@ed $industan Unilever ;imitedFs Project Sha.ti for E/reatin! Shared OalueF and besto1ed upon the company the Porter Pri@e for +4' $U; 1as the hi!hest ran.ed Indian company on the 0orbes list of E"ost Innovative /ompaniesF across the !lobe for +4' Bas ran.ed number three on 0ortune IndiaFs list of IndiaFs most admired companies' In the list compiled 1ith the help of !lobal mana!ement consultancy $ay 3roup' $U; 1as reco!ni@ed as top 0"/3 /ompany in India by -un D #radstreet /orporate A1ards +4' $U; is /lient of the Kear at =ffies +49 G +4' $industan Unilever ;imited 1as
reco!nised as the H/onscious /apitalist of the KearH at the +49 0orbes India ;eadership A1ards' $U; 1on + a1ards overall 1ith 3olds, Silvers and #ron@es at the +49 =mvies A1ards' $U; ran.s number t1o on the on 0ortune IndiaHs +49 H4 "ost Admired /ompanies listH' $industan Unilever ;imited has emer!ed as the &o' H"ost %espected /ompany in IndiaH in a survey conducted by #usiness Borld in +49' As per the latest &ielsen /ampus Trac.5business school survey released in "arch +4, $industan Unilever has emer!ed as the &o' employer of choice for #5school students 1ho 1ill !raduate in +49, across functions' $U; also retained the H-ream =mployerH status for the *th year runnin! and continues to be the top company considered for application by #5School student in India' In +4+, $U; 1as reco!ni@ed as one of the 1orldHs most innovative companies by 0orbes' Bith a ran.in! of number *, it 1as the hi!hest ran.ed 0"/3 /ompany' $industan Unilever ;imited ($U;) 1on the first pri@e at 0I//I Bater A1ards +4+ under the cate!ory of Hcommunity initiatives by industryH for 3undar #asin Project, a 1ater conservation initiative' $industan Unilever ;imited 1on 9 a1ards at the =mvies +4+ "edia A1ards or!anised by the Advertisin! /lub #ombay in September +4+' The company received four a1ards at the Spi.es Asia A1ards +4+, held in September' The a1ards included one 3rand Pri2 one 3old A1ard and t1o Silver A1ards' $U;Hs /hhind1ara Unit 1on the &ational Safety A1ard for outstandin! performance in Industrial Safety' These a1ards 1ere instituted by the Union "inistry of ;abour and =mployment in :*' $U; 1as one of the ei!ht Indian companies to be featured on the 0orbes list of BorldHs "ost %eputed companies in +446' In July +4+ $industan Unilever ;imited 1on the 3olden Peacoc. 7ccupational $ealth and Safety A1ard for +4+ in the 0"/3 cate!ory for its safety and health initiatives and continuous improvement on .ey metrics' $industan Unilever ;imited is rated as best 9/i /ompany 1hich is re!istered 1ith &ational Industrial /lassification /ode 4' PondHs Talcum Po1derHs pac.a!in! innovation has secured a Silver A1ard at the presti!ious +th -uPont 3lobal Pac.a!in! A1ard, in "ay +4+'The brand 1as reco!ni@ed for cost and 1aste reduction'
In "ay +4+, $U; D Star #a@aar received the silver a1ard for H/reatin! /onsumer Oalue throu!h Joint Promotional and =vent 0orecastin!H at the 9th =/% =fficient /onsumer %esponse Asia Pacific /onference' In +4, $U; 1as named the most innovative company in India by 0orbes and ran.ed *th in the top 4 list of most innovative companies in the 1orld' $industan Unilever ;td received the &ational A1ard for =2cellence in /orporate 3overnance +4 of the Institute of /ompany Secretaries of India (I/SI) for e2cellence in corporate !overnance In +4+, $industan Unilever emer!ed as the &o' employer of choice for #5School students 1ho 1ill !raduate in +4+' In addition, $U; also retained the H-ream =mployerH status for the 9rd year runnin!' $industan Unilever ran.ed &o' + in 0ortune IndiaHs "ost Admired /ompanies list, 1hich 1as released by 0ortune India in partnership 1ith the $ay 3roup' The company received the hi!hest scores for endurance and financial soundness' $U; 1as ran.ed 6th in The #rand Trust %eport +4 published by Trust %esearch Advisory' 9* $U; brands also featured in the list includin! ;u2, -ove, ;ipton, Oim, Nissan, #ru, %e2ona, /lose Up, /linic Plus, PondHs, Nnorr, and Pepsodent amon! others'' $U; emer!ed as the top H-ream =mployerH as 1ell as the top company considered for application in the annual #5School Survey conducted by &ielsen in &ovember +44' This 1as the second successive year that $U; has been rated as the top H-ream =mployerH in India' $U; has also emer!ed as the top employer of choice amon! the top si2 Indian Institutes of "ana!ement (II"A, #, /, ;, N and I)' $U; 1on three a1ards at the H/&#/ A1aa@ Storyboard /onsumer A1ardsH in +4 G "ost %ecommended 0"/3 /ompany of the Kear? "ost /onsumer /onscious /ompany of the Kear and -i!ital "ar.eter of the Kear' The company 1as felicitated in April +44 for receivin! the hi!hest number of patents in the year +44: at Annual Intellectual Property A1ards +44' In +446, $industan Unilever 1as rated as the most respected company in India for the past + years by %usiness&orld , one of IndiaHs leadin! business ma!a@ines' The ratin! 1as based on a compilation of the ma!a@ineHs annual survey of IndiaHs most reputed companies over the past + years' $U; is one of the countryHs lar!est e2porters? it has been reco!nised as a 3olden Super Star Tradin! $ouse by the 3overnment of India'
'roducts •
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Personal 1ashL5 ;u2' ;ifebuoy, ;iril , $amam, #ree@e, "oti , -ove, Pears and %e2o na ;aundryL5 Surf =2cel, sun li!ht, %in , Bheel D Ala bleech -ish1asher L5 Oim -isinfectantsL5 -ome2, cif 0oodsL5 Nissan (Jam, Netchup , Suashes), Annapurna( Aata and salt), Nnorr Soups,"odern #read Ice5creamL5 N1ality BallHs #e1era!esL5 TeaL5 #roo.e bond, ;ipton, taj mahal /offeeL5 #roo.e bond bru #eauty ProductsL5 0air D ;ovely, ;a.me, Ponds, Oaseline and Aviance $air5/areL5 Sunsil. naturals, /linic , -ove and ;ifebouy 7ral5/areL5 Pepsodent and /lose5up -eo spray L5 A2e and %e2ona Bater PurifierL5 Pureit Ayurvedic Personal D health careL5 Ayush
'rocter ( Gamble
Procter D 3amble /o', also .no1n as PD3, is an American multinational consumer !oods company headuartered in do1nto1n /incinnati, 7hio, United States, founded by Billiam Procter and James 3amble, both from the United Nin!dom' Its products include cleanin! a!ents, and personal care products' Prior to the sale of Prin!les to the Nello!! /ompany, its product line also included foods and bevera!es' In +4, PD3 recorded 89' billion in sales' 7n Au!ust , +4, PD3 announced it 1as streamlinin! the company, droppin! around 44 brands and concentratin! on the remainin! * brands, 1hich produced : percent of the companyHs profits' A'3' ;afley, the companyHs chairman, president and /=7 until 7ctober 9, +4, said the future PD3 1ould be a much simpler, much less comple2 company of leadin! brands thatHs easier to mana!e and operate' -avid Taylor became PD3 /=7 and President effective &ovember , +4' PD3 remains a hi!hly selective employer as less than M of all applicants are hired annually
"istor)
7ri!ins /andle ma.er Billiam Procter and soap ma.er James 3amble, both born in the United Nin!dom of 3reat #ritain and Ireland, emi!rated from =n!land and Ireland respectively' They settled in /incinnati initially and met 1hen they married sisters, 7livia and =li@abeth &orris' Ale2ander &orris, their father5in5la1, called a meetin! in 1hich he persuaded his ne1 sons5in5la1 to become business partners' 7n 7ctober 9, 896, as a result of the su!!estion, Procter D 3amble 1as created' In 88G8:, sales reached million' #y that point, appro2imately 84 employees 1or.ed for Procter D 3amble' -urin! the American /ivil Bar , the company 1on contracts to supply the Union Army 1ith soap and candles' In addition to the increased profits e2perienced durin! the 1ar, the military contracts introduced soldiers from all over the country to Procter D 3ambleHs products' In the 884s, Procter D 3amble be!an to mar.et a ne1 product, an ine2pensive soap that floats in 1ater' The company called the soap Ivory' Billiam Arnett Procter, Billiam ProcterHs !randson, be!an a profit5sharin! pro!ram for the companyHs 1or.force in 886' #y !ivin! the 1or.ers a sta.e in the company, he correctly assumed that they 1ould be less li.ely to !o on stri.e' The company be!an to build factories in other locations in the United States because the demand for products had out!ro1n the capacity of the /incinnati facilities' The companyHs leaders be!an to diversify its products as 1ell and, in :, be!an producin! /risco, a shortenin! made of ve!etable oils rather than animal fats' As radio became more popular in the :+4s and :94s, the
company sponsored a number of radio pro!rams' As a result, these sho1s often became commonly .no1n as soap operas' International e2pansion The company moved into other countries, both in terms of manufacturin! and product sales, becomin! an international corporation 1ith its :94 acuisition of the Thomas $edley /o', based in &e1castle upon Tyne, =n!land' After this acuisition, Procter D 3amble had their UN $eaduarters at H$edley $ouseH in &e1castle upon Tyne, until uite recently' &umerous ne1 products and brand names 1ere introduced over time, and Procter D 3amble be!an branchin! out into ne1 areas' The company introduced Tide laundry deter!ent in :* and Prell shampoo in :6' In :, Procter D 3amble be!an sellin! the first toothpaste to contain fluoride, .no1n as /rest' #ranchin! out once a!ain in :6, the company purchased /harmin Paper "ills and be!an manufacturin! toilet paper and other paper products' 7nce a!ain focusin! on laundry, Procter D 3amble be!an ma.in! -o1ny fabric softener in :*4 and #ounce fabric softener sheets in :6+' 7ne of the most revolutionary products to come out on the mar.et 1as the companyHs Pampers, first test5mar.eted in :*, the same year Procter D 3amble came out 1ith $ead D Shoulders' Prior to this point disposable diapers 1ere not popular, althou!h Johnson D Johnson had developed a product called /hu2' #abies al1ays 1ore cloth diapers, 1hich 1ere lea.y and labor5 intensive to 1ash' Pampers provided a convenient alternative, albeit at the environmental cost of more 1aste reuirin! landfillin!' 0urther developments Procter D 3amble acuired a number of other companies that diversified its product line and si!nificantly increased profits' These acuisitions included 0ol!ers /offee, &or1ich =aton Pharmaceuticals (the ma.ers of Pepto5#ismol), %ichardson5Oic.s, &o2ell ( &o2@ema), ShultonHs 7ld Spice, "a2 0actor , the Iams /ompany, and Pantene amon! others' In ::, the company made headlines for bi! losses resultin! from levered positions in interest rate derivatives, and subseuently sued #an.ers Trust for fraud? this placed their mana!ement in the unusual position of testifyin! in court that they had entered into transactions that they 1ere not capable of understandin!' In ::*, PD3 a!ain made headlines 1hen the 0ood and -ru! Administration approved a ne1 product developed by the company, 7lestra' Also .no1n by its brand name H7leanH, 7lestra is a lo1er5calorie substitute for fat in coo.in! potato chips and other snac.s' In January +44 PD3 announced the acuisition of 3illette, formin! the lar!est consumer !oods company and placin! Unilever into second place' This added brands such as 3illette ra@ors, -uracell, #raun, and 7ral5# to their stable' The acuisition 1as approved by the =uropean Union and the 0ederal Trade /ommission, 1ith conditions to a spinoff of certain overlappin! brands' PD3 a!reed to sell its Spin #rush battery5operated electric toothbrush business to /hurch D -1i!ht, and 3illetteHs %embrandt toothpaste line to Johnson D Johnson' The
deodorant brands %i!ht 3uard, Soft and -ry, and -ry Idea 1ere sold to -ial /orporation' The companies officially mer!ed on 7ctober , +44' ;iuid Paper , and 3illetteHs stationery division, Paper "ate 1ere sold to &e1ell %ubbermaid' In +448, PD3 branched into the record business 1ith its sponsorship of Ta! %ecords, as an endorsement for TA3 #ody Spray' PD3Hs dominance in many cate!ories of consumer products ma.es its brand mana!ement decisions 1orthy of study' 0or e2ample, PD3Hs corporate strate!ists must account for the li.elihood of one of their products cannibali@in! the sales of another ' 7n Au!ust +, +44: the Ireland5based pharmaceutical company Barner /hilcott announced they had bou!ht PD3Hs prescription5dru! business for 9' billion' PD3 e2ited the food business in +4+ 1hen it sold its Prin!les snac. food business to Nello!!Hs for +'6 billion after the +'9 billion deal 1ith former suitor -iamond 0oods fell short' The company had previously sold Jif peanut butter and 0ol!ers coffee in separate transactions to Smuc.erHs' In April +4, the company sold its Iams pet food business in all mar.ets e2cludin! =urope to "ars, Inc' for +': billion' It sold the =uropean Iams business to Spectrum #rands in -ecember +4' %estructurin! In Au!ust +4, PD3 announced it 1as streamlinin! the company, droppin! around 44 brands and concentratin! on the remainin! *, 1hich 1ere producin! : percent of the companyHs profits' In "arch +4, the company announced it 1as sellin! its Oic.s Oapo Steam U'S' liuid inhalant business to $elen of Troy, part of a brand5restructurin! operation' This deal 1as the first health5 related divestiture under the brand5restructurin! operation' In July +4, the company announced the sale of 9 of its beauty brands to /oty, a beauty product manufacturer, in a US9 billion deal' It cited slu!!ish !ro1th for its beauty division as the reason for the mer!er' The sale is planned to be completed in the second half of +4*' In 0ebruary +4*, PD3 completed the transfer of -uracell to #er.shire $atha1ay throu!h an e2chan!e of shares'
'roducts
• • • • • • • • • •
• • • •
• • • • •
Al1ays feminine hy!iene products Ariel laundry deter!ent #ounty paper to1els, sold in the United States and /anada /harmin bathroom tissue and moist to1elettes /rest toothpaste -a1n dish1ashin! -o1ny fabric softener and dryer sheets 0ebre@e odor eliminator 3ain laundry deter!ents, liuid fabric softener, dryer sheets and dish 1ashin! liuid 3illette ra@ors, shavin! soap, shavin! cream, body 1ash, shampoo, deodorant and anti5 per spirant $ead D Shoulders shampoo 7lay personal and beauty products 7ral5# inter5dental products, such as 7ral5# 3lide Pampers D Pampers Nandoo disposable diapers and moist to1elettes' The +4 0inancial %eport lists Pampers as Procter D 3ambleHs lar!est brand'Q+R Pantene hair care products SN5II beauty products Tide laundry deter!ents and products Oic.s cou!h and cold products Bell a hair care products
OBJECTIVE
• • • • •
To .no1 about the customer satisfaction level re!ardin! $U; and PD3 products' To evaluate the problems faced by customers 1hile usin! the products' To .no1 about the su!!estions of customers to increase the sale of products' To .no1 about the source of information of products To .no1 about the uality of products'
REVIEW OF LITERATURE
Notler (+449) also defines satisfaction as a persons feelin! of pleasure or disappointment resultin! from comparin! a products perceived performance in relation to his or her e2pectations' Satisfaction is an overall customer attitude to1ards a service provider, or an emotional reaction to the difference bet1een 1hat the customer anticipate and 1hat they actually receive, as far as the fulfillment of some need, !oal and desire is concerned' ($ans mar. and Albinsson +44)'These definitions all point to the fact that every customer has in one 1ay or the other somethin! he>she e2pects from his>her service providers' These e2pectations have come into play because of a need that has to be satisfied' These e2pectations are not the same as there are many customers' Notler et al (+44+), posit that the customer !ets dissatisfied if performance is belo1 e2pectation and vice versa' If performance !oes beyond the e2pectation of the customer, the customer is hi!hly satisfied and deli!hted '"otley, (+449), corroborates the idea of matchin! service performance 1ith customers e2pectations' $e notes that the mission of a business is the creation of satisfied clients 1ho tend to favour the or!ani@ation throu!h time by patroni@in! the services bein! delivered by the business' $e !oes further to mentions that, businesses scan achieve this aim by understandin! 1hat satisfies and dissatisfies their customers orclients' /hristopher, Payne, and #allantyne (::9) have defined service uality as the ability of the or!ani@ation to meet or e2ceed customer e2pectations' Service uality is believed to depend on the !ap bet1een e2pected and perceived performance (Anderson, 0ornell,D ;ehmann, ::)'3itlo1, 7ppenheim, and 7ppenheim (:8:) also stated that service uality is the e2tent to 1hich the customer or users believe the service surpasses their needs and e2pectations' /ustomer Satisfaction and ;oyaltyL The %elationship The uestion 1hich needs to be ans1ered is 1hether there is any correlation and>or relationship bet1een customer satisfaction and customer loyalty' Notler (+449) put for1ard that there is no direct relationship bet1een customer satisfaction and customer loyalty' In other 1ords, the relationship is not proportional' The idea of customer satisfaction not directly lin.ed 1ith customer loyalty is supported by 7echsli and "att (+444)' They hold the vie1 that? the fact that a customer is satisfied 1ith the services of a business does not!uarantee his or her loyalty' They therefore see a sharp distinction bet1een customer satisfaction and loyalty' In their o1n 1ords, satisfaction is a fleetin! emotional response to the uality of the clients last business transaction' #ein! satisfied at the moment is no !uarantee of an on!oin! relationship' $o.anson (::) mentions the fact that a very satisfied customer does not necessarily mean a loyal customer' Binstanley and "artha (::6), have a different vie1 about the relationship bet1een customer satisfaction and loyalty' They perceive a direct relationship bet1een satisfaction and loyalty' They claim that 1hen customers are satisfied, they concentrate their business 1ith one business or service provider' Also customers 1ho are hi!hly satisfied are much more li.ely to vie1 their service providers as their main relationship business' Thus, /lar.e (+44), has put for1ard the ar!ument that, a business that focuses e2clusively on customer satisfaction runs the ris. of becomin! an undifferentiated brand 1hose customers believe only that it meets the minimum performance criteria for the cate!ory+44
RESEARCH METHODOLOGY
The purpose of methodolo!y is to describe the process involved in research 1or.' This includes the overall research desi!n, data collection method, the field survey and the analysis of data' In this study, the researcher has adopted descriptive research' a% Sap!e 'e(ign
SurveyL A sample of 44 customers' )% Re(ear$ De(ign
- e ta i le d a n d s t ru c tu r ed u e st i on n a ir e 1 a s d e si ! ne d ' T h e u e st i on n a ir e 1a s desi!ned to !et information from customers about their satisfaction and overall opinion about $industan Unilever ;imited Product and PD3' The methodolo!y developed 1as Primary and Secondary research' $% Data C"!!e$ti"n#
'rimar) data Primary data are those 1hich are collected as fresh and for the first time and thus happen to be ori!inal in character' It 1as collected throu!h uestionnaire' !econdar) data The secondary data are those 1hich have already been collected by someone else a n d 1 h i c h h a v e a l r e a d y b e e n t h r o u ! h t h e s t a t i s t i c a l p r o c e s s ' T h e d a t a 1e re collected in the form of company profile and produce profile from the 1eb sites' Some of the boo.s 1ere referred for theoretical concepts' '% Fie!' "* S+r,e-
The field 1or. for the survey 1as conducted in %opar' The e2ercise involved 1as fillin! out the uestionnaire by customers'
DATA ANALYSIS
' -o you use $U; and PD3 products
Use of HUL and P&G products 120 100
98
80
Use of HUL and P&G products
60 40 20 2 0 Yes
No
Data Interpretati"n. Te a)",e ta)!e ("/( tat 012 re(p"n'ent( +(e pr"'+$t( "* HUL an' P&G /i!e tere are "n!- 32 re(p"n'ent( /" '" n"t +(e te(e pr"'+$t(#
+' If yes, then 1hich one you prefer mostly
Which one 100 90
89
80 70 60
!"c! one
50 40 30 20
11
10 0 HUL
P&G
Data Interpretati"n. Te a)",e ta)!e ("/( tat 102 re(p"n'ent( +(e pr"'+$t( "* HUL /i!e tere are "n!- 442 /" +(e pr"'+$t( "* P&G#
5# Wat i( -"+r ain ("+r$e "* in*"rati"n a)"+t HUL an' P&G pr"'+$t(6
Information Source 90 80 70 60 nfor'at"on (ource
50 40 30 20 10 0 #ed"a
$roac!er
%r"ends
Data Interpretati"n. Te a)",e ta)!e ("/( tat 712 re(p"n'ent( $ae t" 8n"/ a)"+t te pr"'+$t( *r" e'ia9 432 *r" )r"a$er an' "n!- 4:2 *r" *rien'(#
;#
I* e'ia9 /i$ "ne6
Media 80 70 60 50
#ed"a
40 30 20 10 0 )*+*
,ad"o
nternet
Data Interpretati"n. Te a)",e ta)!e ("/( tat <72 re(p"n'ent( $ae t" 8n"/ a)"+t te pr"'+$t( tr"+g T#=#9 4;2 tr"+g ra'i" an' re(t 402 tr"+g internet#
># Sin$e "/ !"ng are -"+ +(ing te HUL an' P&G pr"'+$t(6
Time 60 49
50 40
)"'e 30
24
27
20 10 0 Less t!an one -ear
1.2-ear
#ore t!an 2-ear
Data Interpretati"n. Te a)",e ta)!e ("/( tat 3;2 re(p"n'ent( are t"(e /" are +(ing te pr"'+$t( *r" !e(( tan "ne -ear9 372 *r" "ne?t/" -ear( an' ;02 *r" "re tan t/" -ear(#
<# Wat i( -"+r (ati(*a$ti"n !e,e! *"r HUL an' P&G pr"'+$t(6
Satisfaction Level 45 40
42 36
35 30 (at"sfact"on Lee
25 20
18
15 10 4
5 0 H"/!- sat"sed
"ssat"sed
Data Interpretati"n. Te a)",e ta)!e ("/( tat 5<2 re(p"n'ent( are ig!- (ati(*ie' /it te pr"'+$t(9 ;32 are (ati(*ie'9 412 are 'i((ati(*ie' an' re(t ;2 are ig!- 'i((ati(*ie'#
6' Ha,e -"+ *a$e' an- pr")!e /i!e +(ing HUL an' P&G pr"'+$t(6
Problem 100 90
87
80 70 60
Proe'
50 40 30 20
13
10 0 Yes
No
-ata InterpretationL The above table sho1s that 86M respondent faced the problem 1hile usin! the products and 9M did not face the same problem'
1# Are -"+ (ati(*ie' /it te pri$e( "* te pr"'+$t(6
Satisfaction with prices 70
64
60 50 40
36
(at"sfact"on "t! pr"ces
30 20 10 0 Yes
No
Data Interpretati"n. Te a)",e ta)!e ("/( tat <;2 re(p"n'ent are (ati(*ie' /it te pri$e( "* te pr"'+$t an' 5<2 are 'i((ati(*ie' *"r te pri$e(#
0# A$$"r'ing t" -"+ /- HUL an' P&G pr"'+$t( a,e e'ge ",er "ter pr"'+$t(6
d!e over others 35 30
32 27 24
25 20
d/e oer ot!ers
17
15 10 5 0 Pr"ce
ua"t-
,an/e
'a/e
Data Interpretati"n. Te a)",e ta)!e ("/( tat 532 re(p"n'ent tin8 tat te- a,e e'ge ",er "ter( )e$a+(e "* g""' iage937 2 re(p"n'ent tin8 tat te- a,e e'ge ",er "ter( )e$a+(e "* g""' pri$e9 3;2 re(p"n'ent tin8 tat te- a,e e'ge ",er "ter( )e$a+(e "* g""' @+a!it-947 2 re(p"n'ent tin8 tat te- a,e e'ge ",er "ter( )e$a+(e "* g""' range#
4:# Weter -"+ /i!! p+r$a(e HUL an' P&G pr"'+$t( i* teir pri$e( are in$rea(e'6
Purchase after price increase 70 60
59
50 41 40
Purc!ase after pr"ce "ncrease
30 20 10 0 Yes
No
Data Interpretati"n. Te a)",e ta)!e ("/( tat "(t "* re(p"n'ent are pre*er P &G pr"'+$t( i* pri$e in$rea(e' an' re(t ;42 re(p"n'ent are an(/er n" i* pri$e i( in$rea(e'#
44# Wi$ i( te )e(t /a- "* pr""ting te (a!e( "* HUL an' P&G pr"'+$t(6
"est wa# of promotion 40 35 30 25 20 15 10 5 0
38 31 20 11
$est a- of pro'ot"on
Data Interpretati"n. Te a)",e ta)!e ("/( tat 512 re(p"n'ent are intera$t /it e!e$tr"ni$ e'ia9 542 re(p"n'ent are intera$t /it ("p 'i(p!a-93:2 re(p"n'ent intera$t /it "ar'ing( an' re(t 442 re(p"n'ent are intera$t /it '""r t" '""r (e!!ing#
LIMITATIONS ' +' 9' '
It is very difficult to collect the information from people as they are busy in their 1or.' This study 1as carried out only amon! the consumer in %opar city' The sample si@e 1as restricted to 44 due to time constraints The sample 1as ta.en on the basis of convenience there for the short comin! of the
convenience samplin! may also be present in this study' ' This study is based on the prevailin! satisfaction of the respondents' #ut their satisfaction may chan!e accordin! to time and technolo!y'
Fin'ing ' +' 9' ' '
"ajority of people are usin! PD3 and $U; products' "ost of the people prefer $U; products' "edia is a !ood information source for advertisement to interact 1ith customers' "ostly people are satisfied 1ith PD3 and $U; products It is also found that :M respondents prefer to purchase PD3 and $U; products even if
prices increased' *' *:M respondents are satisfied 1ith the products of PD3 and $U;'
SUGGESTIONS ' /ompanies should try to e2pand its mar.et share and should also try to increase the a1areness throu!h the advertisement' +' /ustomer feedbac. can be ta.en 1hich 1ill help the company for promotion' 9' #oth companies should increase their distribution channel' ' #oth companies should not increases their prices because most of the customer 1ill !et dissatisfied 1ith more prices'
CONCLUSION After studyin! various mar.et dynamics of $U; and PD3 products 1ith the help of /ustomer survey mar.et standin! of $U; products is uite clear' $U; and PD3 Products are clearly the mar.et leader in branded products' Accordin! to analysis it can be conducted that $U; and PD3 Products are havin! !ood mar.et share and e2cellent uality as compared to products' /ustomer considers uality of $U; and PD3 products as most important factor' "oreover the prices of the $U; and PD3 products are very competitive' Accordin! to customers, media is the main source of Information of $U; and PD3 products? electronic media is the best 1ay of Information' In nutshell, it can be concluded that mostly customers prefer $U; and PD3 Products and they are satisfied 1ith them'
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UESTIONNAIRE ' +' 9' '
&ame ' A!e '' 3ender ' -o you use $U; and PD3 products a) Kes b) &o
' If yes, then 1hich one you use a) $U; b) PD3 *' Bhat is your main source of information about $U; and PD3 products a) "edia b) 0riends c) #roacher
6' If media, 1hich one a) T'O c) %adio
b ) Internet
8' Since ho1 lon! are you usin! the $U; and PD3 products a) ;ess than one year b) 5+year c) "ore than +year
:' Bhat is your satisfaction level for $U; and PD3 products a) $i!hly satisfied
b) Satisfied
c) -issatisfied
d) $i!hly dissatisfied
4'$ave you faced any problem 1hile usin! $U; and PD3 products a) Kes b) &o
