APPENDIX-A

UNDERSTANDING THE CONSUMER BEHAVIOR ON

SAFE DRINKING WATER

PROJECT REPORT

Submitted in partial fulfillment of the

Requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

2011

NAME : REETESH KUMAR SINGH

ENROLLMENT NO.:

Under the supervision of

…………………………………………………..

INSTITUTE OF DISTANCE EDUCATION

UNIVERSITY OF MADRAS

1

APPENDIX-B

BONAFIDE CERTIFICATE

INSTITUTE OF DISTANCE EDUCATION

UNIVERSITY OF MADRAS

Certified that this is the bonafide Project work done by……………....

………………..with enrollment no……………………………………….

Of the final year M.B.A. Degree course in the institute of distance

education, University of madras, Chennai-600005 during year 2010.

Date:

Examiner 1 Supervisor

(Signature with seal)

Examiner 2

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APPENDIX-C

Format of attendance certificate

(To be given by the head of the firm/organization)

ATTENDENCE CERTIFICATE

Certified that Mr. /Ms……………………………………… with

Enrollment no…………………………………a student of MBA Degree course in the Institute of distance education, university of Madras has undergone the project work in the…………………………………………

From …………..to…………………………During the period of study and observation in our organization his/her conduct was good.

Date: Signature

1. Name of the head:

2. Name of the Industrial

Unit/business organization:

3. Place:

Office seal with date

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ACKNOWLEDGEMENT

There is always a sense of gratitude which one expresses to others for the help or

needy service they render during all phases of life. I would like to express my

gratitude towards all those who have been helpful to me in taking this mighty task of

live project to a successful end.

First of all, I consider it a pleasant duty to express my heart felt appreciation, gratitude

and indebtedness to my guide Ms.Ranjana srivastava for keen interest, invaluable

pain taking and excellent guidance, patience, endurance, encouragement and

thoughtful advice throughout the project work duration.

I would also like to be thankful to Mr. Ankur Gupta (BDE, Kotla SWZ), who has

given me the right direction to prepare my project report.

I would want to take this opportunity to thank all my family members for their help

and suggestions during the course of my project work. I am thankful to all my friends

who gave me constant and continuous inspiration to complete this project.

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DECLARATION

I, Reetesh Kumar Singh, student of MBA (2009-11) studying at K.R.MANGALAM

INSTITUTE OF MANAGEMENT, New Delhi, solemnly declare that the project

work titled- ‘Understanding the consumer behavior on safe drinking water’ was

carried out by me at Hindustan Unilever Ltd; New Delhi - Kotla, in partial

fulfillment of the MBA programme.

This programme was undertaken as a part of academic curriculum according to the

University rules and norms and by no commercial interest and motives.

Reetesh Kumar Singh

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CONTENT OF THE PROJECT

Chapter 1 Introduction

1.1 Organization profile

1.2 Concepts

1.3 Need for the study

1.4 Problem

1.5 Objectives

1.6 Procedure-Methodology

Chapter 2 Analysis

2.1 Analysis of the situation

2.2 Existing system

2.3 Need for the change in system

2.4 Proposed system

Chapter 3 Present condition with special reference to the

Organization/industry concern

Chapter 4 Summary, Conclusion and Suggestions

4.1 Summary of the system

4.2 Scope of the system

4.3 Suggestions.

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Chapter -1

Introduction

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1.1 Organization profile

Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods

company, touching the lives of two out of three Indians with over 20 distinct

categories in home & personal care products and food & beverages. They endow the

company with a scale of combined volumes of about 4 million tonnes and sales of

over Rs. 13,000 crores. HUL is also one of the country's largest exporters; it has been

recognized as a Golden Super Star Trading House by the Government of India.

Type : Public company BSE:HUL

Industry: Fast Moving Consumer Goods (FMCG)

Founded : 1933

Headquarter: Mumbai , India

Key people: Harish Manwani (Chairman),

: Nitin Paranjpe (CEO and Managing Director)

Products : Home & Personal Care, Foods, Water Purifier

Revenue: Rs  20,869.57 crore (US$ 4.45 billion) (2008-

2009)

Employees : Over 65,000 direct & indirect employees

Parent: Unilever Plc

Website : w ww.hul.co.in

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HUL was formed in 1933 as Lever Brothers India Limited and came into being in

1956 as Hindustan Lever Limited through a merger of Lever Brothers. Hindustan

Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India

and has employee strength of over 15,000 employees and contributes for indirect

employment of over 52,000 people. The company was renamed in June 2007 to

“Hindustan Unilever Limited”.

In 2007, Hindustan Unilever was rated as the most respected company in India for the

past 25 years by Business world, one of India’s leading business magazines. The

rating was based on a compilation of the magazines annual survey of India’s Most

Reputed Companies over the past 25 years. HUL is the market leader in Indian

consumer products with presence in over 20 consumer categories such as soaps, tea,

detergents and shampoos amongst others with over 700 million Indian consumers

using its products. It has over 35 brands. Sixteen of HUL’s brands featured in the AC

Nielsen Brand Equity list of 100 Most Trusted Brands Annual Survey (2008).

According to Brand Equity, HUL has the largest number of brands in the Most

Trusted Brands List. It’s a company that has consistently had the largest number of

brands in the Top 50 and in the Top 10 (with 4 brands).

Hindustan Unilever's distribution covers over 1 million retails outlets across India

directly and its products are available in over 6.3 million outlets in India, i.e., nearly

80% of the retail outlets in India. It has 39 factories in the country. Two out of three

Indians use the company’s products and HUL products have the largest consumer

reach being available in over 80 per cent of consumer homes across India.

The Anglo-Dutch company Unilever owns a majority stake (52%) in Hindustan

Unilever Limited. HUL was one of the eight Indian companies to be featured on the

Forbes list of World’s Most Reputed companies in 2007.

HISTORY OF HUL

In the summer of 1888, visitors to the Kolkata harbour noticed crates full of

Sunlight soap bars, embossed with the words "Made in England by Lever

Brothers". With it, began an era of marketing branded Fast Moving Consumer

Goods (FMCG).

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Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux

and Vim.

Vanaspati was launched in 1918 and the famous Dalda brand came to the

market in 1937. In 1931, Unilever set up its first Indian subsidiary, Hindustan

Vanaspati Manufacturing Company, followed by Lever Brothers India

Limited (1933) and United Traders Limited (1935). These three companies

merged to form HUL in November 1956; HUL offered 10% of its equity to the

Indian public, being the first among the foreign subsidiaries to do so. Unilever

now holds 52.10% equity in the company. The rest of the shareholding is

distributed among about 360,675 individual shareholders and financial

institutions.

The erstwhile Brooke Bond's presence in India dates back to 1900.

By 1903, the company had launched Red Label tea in the country.

In 1912, Brooke Bond & Co. India Limited was formed. Brooke Bond joined

the Unilever fold in 1984 through an international acquisition.

The erstwhile Lipton's links with India were forged in 1898. Unilever acquired

Lipton in 1972 and in 1977 Lipton Tea (India) Limited was incorporated.

Pond's (India) Limited had been present in India since 1947. It joined the

Unilever fold through an international acquisition of Chesebrough Pond's USA

in 1986.

Since the very early years, HUL has vigorously responded to the stimulus of

economic growth. The growth process has been accompanied by judicious

diversification, always in line with Indian opinions and aspirations.

The liberalization of the Indian economy, started in 1991, clearly marked an

inflexion in HUL's and the Group's growth curve. Removal of the regulatory

framework allowed the company to explore every single product and

opportunity segment, without any constraints on production capacity.

Simultaneously, deregulation permitted alliances, acquisitions and mergers.

In one of the most visible and talked about events of India's corporate history,

the erstwhile Tata Oil Mills Company (TOMCO) merged with HUL, effective

from April 1, 1993. In 1996, HUL and yet another Tata company, Lakme

Limited, formed a 50:50 joint venture, Lakme Unilever Limited, to market

Lakme's market-leading cosmetics and other appropriate products of both the

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companies. Subsequently in 1998, Lakme Limited sold its brands to HUL and

divested its 50% stake in the joint venture to the company.

HUL formed a 50:50 joint venture with the US-based Kimberly Clark

Corporation in 1994, Kimberly-Clark Lever Ltd, which markets Huggies

Diapers and Kotex Sanitary Pads.

HUL has also set up a subsidiary in Nepal, Unilever Nepal Limited (UNL),

and its factory represents the largest manufacturing investment in the

Himalayan kingdom. The UNL factory manufactures HUL's products like

Soaps, Detergents and Personal Products both for the domestic market and

exports to India.

The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on the

Foods and Beverages front.

In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with

significant interests in Instant Coffee.

In 1993, it acquired the Kissan business from the UB Group and the Dollops

Ice cream business from Cadbury India.

As a measure of backward integration, Tea Estates and Doom Dooma, two

plantation companies of Unilever, were merged with Brooke Bond.

Then in 1994, Brooke Bond India and Lipton India merged to form Brooke

Bond Lipton India Limited (BBLIL), enabling greater focus and ensuring

synergy in the traditional Beverages business. 1994 witnessed BBLIL

launching the Wall's range of Frozen Desserts.

By the end of the year, the company entered into a strategic alliance with the

Kwality Ice cream Group families and in 1995 the Milkfood 100% Icecream

marketing and distribution rights too were acquired.

Finally, BBLIL merged with HUL, with effect from January 1, 1996.

In January 2000, in a historic step, the government decided to award 74 per

cent equity in Modern Foods to HUL, thereby beginning the divestment of

government equity in public sector undertakings (PSU) to private sector

partners.

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HUL's entry into Bread is a strategic extension of the company's wheat

business. In 2002, HUL acquired the government's remaining stake in Modern

Foods.

In 2003, HUL acquired the Cooked Shrimp and Pasteurised Crabmeat

business of the Amalgam Group of Companies, a leader in value added

Marine Products exports.

HUL launched a slew of new business initiatives in the early part of 2000’s.

Project Shakti was started in 2001. It is a rural initiative that targets small

villages populated by less than 5000 individuals. It is a unique win-win

initiative that catalyses rural affluence even as it benefits business. Currently,

there are over 45,000 Shakti entrepreneurs covering over 100,000 villages

across 15 states and reaching to over 3 million homes.

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In 2002, HUL made its foray into Ayurvedic health & beauty centre category

with the Ayush product range and Ayush Therapy Centres.

Hindustan Unilever Network, Direct to home business was launched in 2003

and this was followed by the launch of ‘Pureit’ water purifier in 2004.

In 2007, the Company name was formally changed to Hindustan Unilever

Limited after receiving the approval of share holders during the 74th AGM on

18 May 2007.

Brooke Bond and Surf Excel breached the Rs 1,000 crores sales mark the

same year followed by Wheel which crossed the Rs.2,000 crores sales

milestone in 2008.

On 17 October 2008, HUL completed 75 years of corporate existence in

India.

MISSION AND VISION

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-

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positive, and rural development. HUL has also responded in case of national

calamities / 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 education

through the Shakti Vani programme.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 programme, Lifebuoy Swasthya Chetana. The

programme endeavors to induce adoption of hygienic practices among rural Indians

and aims to bring down the incidence of diarrhoea. 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.

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PRODUCTS:

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Product Groups and products range in each product group

PERSONAL WASH Lux,

Breeze,

Lifebuoy,

Dove,

Liril,

Pears, etc.

LAUNDARY Surf Excel,

Wheel,

Rin

SKIN CARE Fair & Lovely,

Pond's,

Vaseline.

HARE CARE Sunsilk Naturals,

Clinic Plus.

ORAL CARE Pepsodent,

Closeup.

DEODRANTS Axe,

Rexona,

Ayush.

COLOUR COSMETICS Lakme

WATER PURIFIER Pureit Compact,

Pureit Classic,

Marvella

WATER DIVISION OF HUL

History

Launched in Chennai; end 2003 Started national launch in beginning 2007 On date; national launch completed Present in all states Total field force of 8000+across the country Already protected 15 million lives.

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Product

Pureit

Purification Stage of Pureit :

Key stages of purification:

1. Micro Fiber mesh (MFM)

2. Compact Carbon Trap (CCT)

3. Germ Kill Processor (Chlorine Cartridge)

4. Polisher

Micro Fibre Mesh

Material-Non Woven Polyester

Removes suspended particulate>10 micron

Reduces filtration load on CCT

Average flow of 5 lit/min

Compact Carbon Trap

Material-Intermediate Activated Carbon-

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Binder is used for holding the carbon granules

Removes particulate impurities<10 micron

Removes organic load-improve taste of water

Removes pesticides

Remove Cysts

Germs kill Processor

Attached with bathing chamber.

Stored germs-kill power target and kill all harmful viruses and bacteria

Unique Auto Switch off Technology-

- After the battery life indicator turns fully red, the purifier will begins to

overflow from the battery life indicator on the front side.

- Some water may still pass through the purifier. However, please note

that the purifier has stopped purifying water & the water may no longer

he safe for drinking.

- The purifier has been designed to overflow to indicate that the battery

has not been replaced even after it has turned fully red.

-

Polisher

Made by activated granular carbon and coated by silver.

This design has reduced pressure drop, eliminated the level of fines coming in

water and reduced wastage of plastic in battery

Removes chlorine and disinfection by -products.

Radial Flow design-low pressure drop

Finally removes all odours, make water visually clear and gives great tasting

water.

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1.2 Concepts

Consumer behavior

Consumer behaviour is the study of when, why, how, and where people do or do not

buy a product. It blends elements

from psychology, sociology, social anthropology and economics. It attempts to

understand the buyer decision making process, both individually and in groups. It

studies characteristics of individual consumers such as demographics and behavioral

variables in an attempt to understand people's wants. It also tries to assess influences

on the consumer from groups such as family, friends, reference groups, and society in

general.

Customer behaviour study is based on consumer buying behaviour, with the customer

playing the three distinct roles of user, payer and buyer. Relationship marketing is an

influential asset for customer behaviour analysis as it has a keen interest in the re-

discovery of the true meaning of marketing through the re-affirmation of the

importance of the customer or buyer. A greater importance is also placed on consumer

retention, customer relationship management, personalization, customization and one-

to-one marketing. Social functions can be categorized into social choice and welfare

functions.

Each method for vote counting is assumed as social function but if Arrow’s

possibility theorem is used for a social function, social welfare function is achieved.

Some specifications of the social functions are decisiveness, neutrality, anonymity,

monotonicity, unanimity, homogeneity and weak and strong Pareto optimality. No

social choice function meets these requirements in an ordinal scale simultaneously.

The most important characteristic of a social function is identification of the

interactive effect of alternatives and creating a logical relation with the ranks.

Marketing provides services in order to satisfy customers. With that in mind, the

productive system is considered from its beginning at the production level, to the end

of the cycle, the consumer

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SWOT Analysis

STRENGTH

HUL enjoys a formidable distribution network covering over 3400 distributors and 16

million outlets. The new sales organization named 'One HUL' brings "Household

and Personal Care" and foods distribution networks together, thereby aligning all the

units towards the common goal of achieving success. HUL has been continuously

able to grow at a rate more than growth rate for FMCG Sector, thereby reaffirming its

future stronghold in Indian market.

Weaknesses

HUL market dominance, originating from its extensive reach and strong brand

presence, allowed it to raise the prices even as raw materials were getting cheaper.

Hence, though the volumes decreased, the margins grew, and company was able to

earn more profits. But higher margins attracted competition in areas of operations.

HUL strategy remained focused on creating power brands and earning higher

margins. It was not left with any other option but to try cutting down the costs in order

to protect volumes, if not increase it.

Opportunities

India is one of the world's largest producers of FMCG goods but its exports are

miniscule as compared to production. Though Indian Cos. has been going global, their

focus is more towards Asian countries because of the similar preferences. HUL is one

of the top companies exporting FMCG goods from India. An expansion of horizons

towards more and more countries would help HUL grow its consumer base and

henceforth the revenues. Penetration levels for some major categories like skin-cream

(22%), shampoo (38%), toothpaste (48%) and processed foods, continue to remain

low offerings but great growth opportunities products

Threats

ITC has reduced its dependence on the cigarettes business - Contribution of the core

business in revenues has come down from 87% in FY99 to 70% in FY’05. Over a

period of five years, ITC has extended its presence into areas like foods, retailing,

hotels, greetings, agriculture, paper, etc. These are businesses that can give it growth

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impetus in the long run. With ITC gaining momentum in each of these businesses, it

is turning into a consumer monolith, and hence, the greatest threat to HUL's Business.

WATER PURIFICTION

Water is a chemical substance that is composed of hydrogen and oxygen and is vital

for all known forms of life.

In typical usage, water refers only to its liquid form or state, but the substance also has

a solid state, ice, and a gaseous state, water vapor or steam. Water covers 71% of the

Earth’s surface On Earth, it is found mostly in oceans and other large water bodies,

with 1.6% of water below ground in aquifers and 0.001% in the air as vapor, clouds

(formed of solid and liquid water particles suspended in air), and precipitation.

Oceans hold 97% of surface water, glaciers and polar ice caps 2.4%, and other land

surface water such as rivers, lakes and ponds 0.6%. A very small amount of the

Earth's water is contained within biological bodies and manufactured products.

Water on Earth moves continually through a cycle of evaporation or transpiration,

precipitation and runoff, usually reaching the sea. Over land evaporation and

transpiration contribute to the precipitation over land.

Clean drinking water is essential to human and other life forms. Access to safe

drinking water has improved steadily and substantially over the last decades in almost

every part of the world. There is a clear correlation between access to safe water and

GDP per capita. However, some observers have estimated that by 2025 more than half

of the world population will be facing water-based vulnerability. A recent report

(November 2009) suggests that by 2030, in some developing regions of the world,

water demand will exceed supply by 50%. Water plays an important role in the world

economy, as it functions as a solvent for a wide variety of chemical substances and

facilitates industrial cooling and transportation. Approximately 70% of fresh water is

consumed by agriculture.

WATER BORNE DISEASES

Water-borne diseases are infectious diseases that spread primarily through

contaminated water. Though these diseases are spread either directly or through flies

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or filth, water is the chief medium for spread of these diseases and hence they are

termed as water-borne diseases.

Most intestinal (enteric) diseases are infectious and are transmitted through faecal

waste. Pathogens – which include virus, bacteria, protozoa, and parasitic worms – are

diseases-producing agents found in the faeces of infected persons. These diseases are

more prevalent in areas with poor sanitary conditions.

These pathogens travel through water sources and interfuses directly through persons

handling food and water. Since these diseases are highly infectious, extreme care and

hygiene should be maintained by people looking after an infected patient. Hepatitis,

cholera, dysentery, and typhoid are the more common water-borne diseases that affect

large populations in the tropical regions.

A large number of chemicals that either exist naturally in the land or are added due to

human activity dissolve in the water, thereby contaminating it and leading to various

diseases.

Pesticides: The organophosphates and the carbonates present in pesticides affect and

damage the nervous system and can cause cancer. Some of the pesticides contain

carcinogens that exceed recommended levels. They contain chlorides that cause

reproductive and endocrinal damage.

Lead: Lead is hazardous to health as it accumulates in the body and affects the central

nervous system. Children and pregnant women are most at risk.

Fluoride: Excess fluorides can cause yellowing of the teeth and damage to the spinal

cord and other crippling diseases.

Nitrates: Drinking water that gets contaminated with nitrates can prove fatal

especially to infants that drink formula milk as it restricts the amount of oxygen that

reaches the brain causing the ‘blue baby’ syndrome. It is also linked to digestive tract

cancers. It causes algae to bloom resulting in eutrophication in surface water.

Petrochemicals: Benzene and other petrochemicals can cause cancer even at low

exposure levels.

Chlorinated solvents: These are linked to reproduction disorders and to some cancers.

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Arsenic: Arsenic poisoning through water can cause liver and nervous system

damage, vascular diseases and also skin cancer.

Other heavy metals: Heavy metals cause damage to the nervous system and the

kidney, and other metabolic disruptions.

Salts: It makes the fresh water unusable for drinking and irrigation purposes.

Exposure to polluted water can cause diarrhoea, skin irritation, respiratory problems,

and other diseases, depending on the pollutant that is in the water body. Stagnant

water and other untreated water provide a habitat for the mosquito and a host of other

parasites and insects that cause a large number of diseases especially in the tropical

regions. Among these, malaria is undoubtedly the most widely distributed and causes

most damage to human health.

PREVENTIVE MEASURES

Water-borne epidemics and health hazards in the aquatic environment are mainly due

to improper management of water resources. Proper management of water resources

has become the need of the hour as this would ultimately lead to a cleaner and

healthier environment.

According to recent news and reports, most tap and well water are not safe for

drinking due to heavy industrial and environmental pollution. Toxic bacteria,

chemicals and heavy metals routinely penetrate and pollute our natural water sources

making people sick while exposing them to long term health consequences such as

liver damage, cancer and other serious conditions. We have reached the point where

all sources of our drinking water, including municipal water systems, wells, lakes,

rivers, and even glaciers, contain some level of contamination. Even some brands of

bottled water have been found to contain high levels of contaminants in addition to

plastics chemical leaching from the bottle.

In order to prevent the spread of water-borne infectious diseases, people should take

adequate precautions. The city water supply should be properly checked and

necessary steps taken to disinfect it. Water pipes should be regularly checked for leaks

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and cracks. At home, the water should be boiled, filtered, or other methods and

necessary steps taken to ensure that it is free from infection.

With more and more Indians becoming aware of the hazards of drinking impure

water, the demand for effective water purifiers is growing rapidly. The majority of

intestinal disorders and infections are caused by water borne micro organisms. As a

result, the number of consumers looking for reliable purification options is increasing

not only in the metros but also in towns across India.

WATER FILTRATION METHODS

1. BOILING:

TECHNOLOGY PRINCIPLE: Boiling of water to temperatures of 100

degree Celsius to kill/ inactive bacteria, viruses and cysts.

PERFORMANCE CLAIMS: The “household standard” for microbiological

purity kills all bacteria, viruses and cysts.

ESSENTIAL COMPONENTS: A vessel or pot for boiling water. Source of

heat-gas, wood or electricity.

POSITIVES

--- Microbiologically safe drinking water.

--- Does not require running water.

--- Simple to operate.

NEGATIVES

--- Need to ensure proper boiling time (at least 20 minutes).

--- Loss of precious water due to evaporation (about 20%).

--- Very long cycle times: heating- boiling- cooling- consumption.

--- Affects taste of water adversely.

--- Does not remove physical, chemical or organic impurities.

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--- Risk of recontamination on storage.

2. UV TECHOLOGY:

TECHOLOGY PRINCIPLE: Use of Ultraviolet (UV) Radiation.

PERFORMANCE CLAIMS: UV radiation kills bacteria and inactivates

viruses. Does not work against cysts.

ESSENTIAL COMPONENTS: Sediment filter to remove physical

impurities. Carbon pre-filter to remove organic material .UV lamp and

chamber.

POSITIVES

--- Easy to operate with the click of a switch.

--- “Online” system: no need to store water.

--- May not be adversely affected by hardness.

NEGATIVES

--- Need to remove particulate and organic impurities as they reduce UV

efficacy.

--- Requires electricity, constant voltages & running water.

--- High cost and requires regular maintenance.

--- Does not inactivate cysts.

--- UV Devices are easy to operate but are costly and requires regular

Maintenance.

3. CANDLE FILTRATION:

TECHNOLOGY PRINCIPLE: Use of ceramic candle filters to remove

impurities by size exclusion.

PERFORMANCE CLAIMS: Removal of physical impurities. Some removal

of bacteria (“100 %” bacteria removal only if impregnated with silver).

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ESSENTIAL COMPONENTS: Upper chamber with 1-3 cylindrical candles.

Lower collection chamber and tap for drawing water.

POSITIVES

--- Does not require running water.

--- Cheap and simple to operate.

--- May remove cysts.

--- Candle can be easily cleaned.

NEGATIVES

--- Does not provide safe water.

--- Very slow flow rates.

--- Needs 2 days to remove odor before device can be used for the first time.

--- No end- of- life indicator.

--- cleaning diminishes effectiveness of filtration.

--- Candle filters don’t destroy minute bacteria. They also serve as breeding

ground for bacteria and viruses.

--- Possibilities of iron used in the screws being rusted.

4. IODINE RESIN TECHOLOGY

TECHNOLOGY PRINCIPLE: An iodine- based biocide which is

impregnated onto a suitable resin, and is related when wetted with water.

PERFORMANCE CLAIMS: Kills common pathogenic bacteria. May kill

viruses.

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ESSENTIAL COMPONENTS (Storage type): Upper chamber with 3-

stages cartridge (filter bag, resin and bacteriostatic carbon).Lower collection

chamber & tap for drawing water.

POSITIVES

--- Does not require running water.

--- Does not require electricity.

--- Removes physical impurities.

--- Simple to operate & functions as storage device.

NEGATIVES

--- Iodine resin without dwell time does not kill viruses.

--- No cysts removal kills.

--- May not work with different types of water (e.g., hard water, high TOC

water).

--- Will leave a residual level of iodine or iodide, which may be harmful to

health.

--- Iodinated Resin technology does not remove or kill cyst .It leaves behind

residual levels of iodine or iodide which may be harmful.

5. REVERSE OSMOSIS

TECHNOLOGY PRINCIPLE: A semi- permeable membrane is used to

drive water across it at pressure and remove impurities.

PERFORMANCE CLAIMS: Removes all bacteria, viruses and cysts.

Removes suspended particles, harmful minerals, color and odor from water.

Reduces TDS by 90%.

ESSENTIAL COMPONENTS: Sediment filter, pre-carbon filter, RO

membrane and post-carbon cartridge.

POSITIVES

--- Gives “as safe as boiled” water.

--- Does not require electricity.

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--- Removes most kinds of physical and colloidal impurities.

--- Can work at high capacities.

NEGATIVES

--- Very expensive for domestic systems.

--- Membrane can clog and requires careful and professional maintenance.

--- Requires running water to work.

--- Reverse Osmosis: Though it gives water which is “as safe as boiled” it is

very expensive and requires running or pressurized water to work.

A good water filtration system installed in your home is the only way to proactively

monitor and ensure the quality and safety of your drinking water.

Major vendors include Eureka Forbes, Philips, Hindustan Unilever, Whirlpool and

Kent. Eureka Forbes is the overall market leader. Others are Ion Exchange, Zeolite,

Kenstar and Maharaja Whiteline. Prices range from less than Rs.2000 to Rs. 25000.

Eureka Forbes’ Aquaguard is still the market leader. Aquaguard Classic is a UV

purifier. Major global player, Philips has also launched UV purifiers, which are

selling well. Purifiers that use ultraviolet technology are usually priced above Rs.

4000.

Some chemical based purification systems include Hindustan Unilever’s Pureit and

Eureka Forbes’ Aquasure both of which are priced below Rs. 2000. They don’t run on

electricity so power outages and electricity bills are not a problem. Also, Pureit and

Aquasure are reported to be user friendly allowing customers to service the devices

themselves. There are several other resin based purifiers as well but these may not be

as effective as Pureit and Aquasure. Also, it is best to select a chemical purifier that is

capable of removing the chemicals that are used for purification.

MARKET SHARE

• Aquaguard is the market leader with approximately 68% market share.

• Aquasure and Pureit, together account for 20%of water purifiers sold and are

reported to be growing at 100 percent per annum.

27

• Two thirds of the existing water purification market belongs to UV water purifiers

and on third is shared between reverse osmosis purification systems and chemical

purifiers.

PRODUCT/SERVICE STRATEGY OF WATER PURIFIER

4 variety available in the market

Easy availability nation wide

Best quality of used plastic (ABS food grade)

Best quality based technological parts used.

Designed and developed to provide “As safe as Boiled Water”

Very attractive design in two color ( Royal blue and Burgundy )

Pure it removes visible dirt, kills all harmful viruses and bacteria,

Removes parasites and pesticide impurities giving you water is “as Save as Boiled water”

Great sensorial- Clear, odour-free water: removes organics,

Pesticides, suspended matter (turbidity)

Any time, anywhere (portable) performance : works-without electricity-without piped water

Very easy to use

Convenience – No hassles of boiling, No maintenance costs like Plumbing

Cost- Rs.1 /- for every 4 Liters of water

Top most brand name ( Hindustan Unilever Ltd )

Quick service ( with In 24 hour )

Life time free service

6 month warranty period

28

PRICE STRATEGY OF WATER PURIFIER

Penetration strategy

Product price range started for 1000 – 5200

Very Low cost of maintenance and consumable

Low cost for product

Best price for other than competitor

Attractive discount on replacement of device for customer

No credit terms

Attractive allowance for dealers

PROMOTION / MARKETING COMMUNICATION

STRATEGY OF WATER PURIFIER

Activated subscription immediately

Fastly installation of products

Properly repair services

Free Services during life time

Commercial TV advertisement

Advertisement in news paper

Broacher

Sales force (8000+ across country)

Marketing surveys through:-

o Kiosk

o Demonstration

o Cold call

o Reference by old customer

PLACE / DISTRIBUTION STRATEGY OF WATER

PURIFIER

Launched in Chennai : end 2003

29

Identify the place’s where Increase impurities than use for water

Identify the place’s where Increase disease

National launch in beginning 2007

Now present in all states

Where Direct sales possibility more (urban area’s mostly)

Easy available product (Good Transport facility )

At Jaipur 1 distributors (4 zone) and many dealers

1.3 Need for the study

The project entitled “Consumers behavior towards safe drinking water with special

reference to Pure It” was undertaken as a part of summer training in Hindustan

Unilever Limited at the safe water zone, Kotla. Hindustan Unilever Limited (HUL) is

India's largest Fast Moving Consumer Goods Company, touching the lives of two out

of three Indians with over 20 distinct categories in Home & Personal Care Products

and Foods & Beverages. The company’s Turnover is Rs. 20, 239 crores (for the 15

month period – January 1, 2008 to March 31, 2009).

Pureit is the world’s most advanced in-home water purifier. Pureit, a breakthrough

offering of Hindustan Unilever (HUL), provides complete protection from all water-

borne diseases, unmatched convenience and affordability.

Objective of the research can be defined as follows:

To understand consumers behavior towards safe drinking water.

Find their awareness about different water- borne diseases, causes of

such diseases and preventive measures.

Make consumers aware about different purification methods and also

find their awareness about HUL’S Pure it.

In this project the research design used was exploratory research with a sample size of

150 respondents. Primary data was collected from the respondents of different

locations of Delhi like Kalkaji, Govindpuri, Kailash colony, Sant nagar, Shalimar

30

Bagh etc., through the Questionnaires. The tools for analysis were SPSS and graphical

representation like bar graphs and pie charts and scale of measurement used was

Nominal Scale data.

The findings of the report were that although water being an essential part of life only

30% of the people considered that they are provided with safe drinking water.

Consumers are aware that there are many diseases caused by drinking contaminated

water but only 72.7% of the consumers know that 80% of the diseases are water-

borne. Consumers take different measures for protection like boiling of water, use

candle filter, electrical purifier or non-electrical purifier and it was also found that

they are aware of the technology used in their purifier. Maximum percent of

consumers preferred purifier with its cost being less than or equal to Rs.2000/-.

It was found that 92.7% consumers wanted to know about a product that provides as

safe as boiled water without use of electricity or gas. When asked whether they have

heard about Pureit it was amazing to know that everyone responded positively but

only 16.7% consumers responded that they are already using Pureit and maximum

people heard about Pureit through T.V commercials .Only 22.7% consumers were

aware that Pureit provides 4 litres of water in just 1 rupee. 56% consumers said that

they would like to see the free home demo. There are also a few reson for study.

for measuring Customer satisfaction

To know the awareness about safe drinking water in peoples.

To know the customer expectation.

To know the factors affecting customer towards particular water purifier.

For increasing the market share of Pureit.

Some basic facts of water problem-

Infected water causes an estimated 80% of disease in India, according to the

World Health Organization.

About half the world’s reported cases of polio, a crippling disease which is

waterborne, occur in India.

31

Each year diarrhea kills 500,000 Indian children.

Water is pure at the source which is municipal treatment plant. it comes to

your house through pipes.

These pipes are very old and have rusted, which may be the cause of

contamination.

Sewage lines are also in contact with underground water pipes.

People also break open pipes at places to have access to water. These open

cracks allow contaminated matter to get inside the water pipes.

With the ever growing problem of safe drinking water faced in India, HUL has

come with a social initiative of providing safe and pure drinking water by

means of pureit, a quality yet affordable water purifier.

32

1.4 Problem

There can be errors of data collection, data handling or sample selection process.

Typically, research studies that use different methodologies report differing results.

Market research has a vital role to play in improving our understanding of these

markets but it cannot provide us with definitive answers.

If respondents are effectively speculating themselves, rather than giving information

on how they regard or use an existing service, their views are of limited value. It is

also much easier to conclude whether there is some demand amongst identifiable

groups than to quantify it.

There are also other problem faced by me in the research-

1. As a lot of information was needed to be extracted out of the questionnaire,

the length of the questionnaire became too long.

2. Refusals was the other problem which I faced during my training, this was

sorted out by requesting them and selecting the right person on the place.

This survey report is also not free from limitations as usual. However the absence of

such limitation would have improved the quality of report as given

> Limited time period restricted to go in for more details the period was very

short to survey such a large area.

> Many respondents were not interested to give the required time for the

questionnaire.

> Respondents sometimes act artificially when know their information is noted

down.

> There was only some certain hours in a day in the idle hours in which the

respondents was ready to talk.

> This project was done on the basis of questionnaire through survey, so it may possible here that some of them might have not provided the correct information.

33

1.5 OBJECTIVE OF THE RESEARCH

The main objectives of the study are:

1. Conducting and analyzing market research.

2. Getting consumer feedback from the existing and potential customers.

3. To understand consumers behavior for safe drinking water

4. Find their awareness about different water- borne diseases, causes of such

diseases and preventive measures.

5. Make consumers aware about different purification methods and also find

their awareness about HUL’S Pure it.

1.6 RESEARCH METHODOLOGY

MARKET RESEARCH TOOLS APPLIED:

1. SPSS: It provides with a broad range of capabilities for the entire analytical

process output, helps us to share results with others using a variety of

reporting methods, and take advantage of the analytical asset storage and

deployment capabilities to other SPSS products. Results from data analysis

will enable us to make smarter decisions more quickly by uncovering key

facts, patterns and trends.

2. GRAPHICAL REPRESENTATION:(BAR GRAPHS, PIE CHARTS etc)

BAR GRAPHS/CHARTS: A Bar graph is a chart with rectangular

bars of lengths usually proportional to the magnitudes or frequencies of

what they represent. Sometimes the bars are not proportional, often

because the chart didn’t start at zero.

PIE DIAGRAMS: A circular graph having a radii dividing the circle

into sectors proportional in angle and area to the relative size of

quantities represented.

34

RESEARCH DESIGN:

1. EXPLORATORY RESEARCH: we gain insights into decision problems

and opportunities.

2. SAMPLING DESIGN:

SAMPLE SIZE:150

TYPE OF SAMPLING: Convenience sampling

DATA COLLECTION:

a) Type of data: Primary data and secondary data.

b) Method of collecting data: Questionnaire as it is convenient and very

feasible tool.

c) Location for filling questionnaire: Different areas of Delhi such as

Kalkaji,Govindpuri,Kailash colony, Santnagar etc.,

SCALES OF MEASUREMENT: Nominal scale

35

Chapter 2

Analysis

36

2.1 Analysis of the situation

DATA ANALYSIS AND INTERPRETATION

Do you consider water as an essential part of ones living?

Frequency Percent Valid Percent

Cumulative

Percent

Valid yes 150 100.0 100.0 100.0

37

Interpretation: We know that water is one of the essential elements that are needed

by a common man. This question was asked to determine whether the consumers

considered water an essential part of their living and the result showed that 100 %

customers responded positively.

What is your existing source of drinking water?(tick any one)

Frequency Percent Valid Percent

Cumulative

Percent

Valid Municipal water 145 96.7 96.7 96.7

Bore water 4 2.7 2.7 99.3

Tanker water 1 .7 .7 100.0

Total 150 100.0 100.0

38

Interpretation: This question was asked to determine the existing source through

which consumers got their drinking water and the result showed that 96.7% of the

consumers got their water from Municipal Corporation, 2.7% used bore water as their

drinking water and nearly .7% used tanker water.

39

Do you consider that the water you are provided with is safe for drinking?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Yes 45 30.0 30.0 30.0

No 105 70.0 70.0 100.0

Total 150 100.0 100.0

40

Interpretation: This question was asked to determine whether the consumers

considered that the water they were provided was safe for drinking and the result

showed that only 30% consumers considered it safe for drinking and the rest 70%

responded negatively.

Are you aware of diseases that are caused by drinking contaminated

water?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Yes 150 100.0 100.0 100.0

41

Interpretation: This question was asked to determine consumer’s awareness about the

diseases that are caused by drinking contaminated water and the result showed that 100%

consumers were of this fact.

42

Do you know that 80% of the diseases in our country are water bound?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Yes 109 72.7 72.7 72.7

No 41 27.3 27.3 100.0

Total 150 100.0 100.0

43

Interpretation: This question was asked to determine whether the consumers were

aware that 80% of the diseases are water bound and the result showed that 72.7%

consumers responded positively and 27.3 % responded negatively.

Do you take any measures to prevent these diseases that may harm your

family?(If No, move to Question 11)

Frequency Percent Valid Percent

Cumulative

Percent

Valid Yes 110 73.3 73.3 73.3

No 40 26.7 26.7 100.0

Total 150 100.0 100.0

44

Interpretation: This question was asked to determine whether the consumers were

taking any measures to protect themselves from such water-borne diseases and the

result showed that 73.3% responded positively and nearly 26.7% responded

negatively.

Are you using any purification method to purify water?(tick any one)

Frequency Percent Valid Percent

Cumulative

Percent

Valid Boiled water 30 20.0 27.3 27.3

Use candle filtered water 15 10.0 13.6 40.9

Use electrical water purifier 44 29.3 40.0 80.9

Use non-electrical water

purifier

21 14.0 19.1 100.0

Total 110 73.3 100.0

Missing System 40 26.7

Total 150 100.0

45

46

Interpretation: This question was asked to find out the different measures that the

consumers were taking to protect themselves from water-borne diseases and the result

showed that 27.3% consumers boiled their water, 13.6% consumers used candle filter,

40% and 19.1% used non-electrical purifier.

Are you aware of the technology used in your purifier?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Yes 80 53.3 73.4 73.4

No 29 19.3 26.6 100.0

Total 109 72.7 100.0

Missing System 41 27.3

Total 150 100.0

47

Interpretation: This question was asked to find out the whether the consumers were

aware of the technology that was used in their purification system and the result showed

that 73.4% responded positively and 26.6% consumers responded negatively.

48

What is the cost of the purifier you are using?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Less than or equal to Rs.2000 64 42.7 58.7 58.7

More than Rs.2000 to less

than Rs.6000

4 2.7 3.7 62.4

More than Rs.6000 to less

than Rs.10,000

1 .7 .9 63.3

More than Rs.10,000 40 26.7 36.7 100.0

Total 109 72.7 100.0

Missing System 41 27.3

Total 150 100.0

49

Interpretation: This question was asked to find out the cost at which the consumers

bought their purification system and the result showed that 58.7% consumers spend

nearly <=2000, 3.7% spent >2000 to <= 6000, .9% spent >6000 to <=10,000 and

36.7% spent >10,000 .

50

After how much time do you go for the service of your purifier?

Frequency Percent Valid Percent

Cumulative

Percent

Valid 3 months 22 14.7 25.6 25.6

6 months 56 37.3 65.1 90.7

9 months 7 4.7 8.1 98.8

1 year 1 .7 1.2 100.0

Total 86 57.3 100.0

Missing System 64 42.7

Total 150 100.0

51

Interpretation: This question was asked to find out the time period after which the

consumers got their purifier serviced and the result showed that 25.6% consumers went for

the service of their purifier after 3 months, 65.1% after 6 months, 8.1% after 9 months and

nearly 1.2 after 1 year.

Will you be interested in knowing about a product that gives “as safe as

Boiled water” without the use of gas or electricity?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Yes 139 92.7 92.7 92.7

No 11 7.3 7.3 100.0

Total 150 100.0 100.0

52

Interpretation: This question was asked to determine whether the consumers were

interested to know about a purifier that works without electricity or gas and provides as safe

as boiled water and the result showed that 92.7% consumers responded positively and

nearly 7.3% responded negatively.

53

Have you heard about Hindustan Unilever Limited’s Pure it?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Yes 150 100.0 100.0 100.0

54

Interpretation: This question was asked to determine consumers awareness about

Hindustan Unilever Limited’s Pure It and it was interesting to know that 100%

consumers responded positively.

Are you already using Pureit?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Yes 25 16.7 16.7 16.7

No 125 83.3 83.3 100.0

Total 150 100.0 100.0

55

56

Interpretation: This question was asked to determine the percentage of people who

were already using Pureit and it was found that 17% of the people responded

positively and rest responded negatively.

How did you come to know about Pure it?

Frequency Percent Valid Percent

Cumulative

Percent

Valid T.V commercials 92 61.3 61.3 61.3

References 36 24.0 24.0 85.3

Outlets 18 12.0 12.0 97.3

Clinics 4 2.7 2.7 100.0

Total 150 100.0 100.0

57

Interpretation: This question was asked to determine the source through which the

consumers came to know about Pure It and the result showed that 61.3% of the

consumers first saw it on T.V, 24.% came to know about it from references, 12% saw

it at an outlet and nearly 2.7% saw it in a clinic.

Do you know that Pure it provides 4 litres of water just in 1 rupee and that

too without any gas or electricity?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Yes 34 22.7 22.7 22.7

No 116 77.3 77.3 100.0

Total 150 100.0 100.0

58

Interpretation: This question was asked to determine whether the consumers were

aware that Pure It provides 4 litres of water just in 1 rupee without the use of gas or

electricity and the result showed that 22.7% consumers responded positively and

nearly 77.3% responded negatively.

59

Will you be interested in seeing the Free Home demo of Pure it?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Yes 76 50.7 56.7 56.7

No 58 38.7 43.3 100.0

Total 134 89.3 100.0

Missing System 16 10.7

Total 150 100.0

60

Interpretation: This question was asked to determine whether the consumers were

interested in seeing the free home demo of Pure It and the result showed that 56.7%

consumers responded positively and nearly 43.3% responded negatively.

61

How a Pureit is better than other method of water purifier:-

Main Feature Pureit Boil water Advance

UV inline

Purifier

Advance

Storage

Purifier

Remove/Kills

Viruses

Bacteria

Pesticides

Yes Must boil

water

30-

40minute

Yes No

End off life indicator Yes No Yes No

Auto switch off Yes No Yes No

18 ltr. Water storage

Capacity

Yes Yes No Yes

Manual backup Yes Yes No Yes

Not require Gas Yes No Yes Yes

Not require electricity Yes Yes No Yes

Dual fill Facility

(Manual or Auto fill)

Yes No No No

Better Taste of water

Removes Smell

Yes No Yes No

62

FAB ANALYSIS OF PUREIT

FEATURES:-Characteristics of a product or service.

BENEFITS:-How a feature meets a need

ADVANTAGES:-Ways in which the product can be of use to customer

NO. FEATURES ADVANTAGE BENEFIT

1 Lid in top cover Easy to pour water No need for running

water

2 Transparent window in

the top cover

Can see the level of

water

Can judge the amount

of water that you need

to pour into the device

3 Top Chamber- capacity 9

ltrs.

Enough for the

average Indian

family’s daily

consumption

No need to keep filling

up the device. One’s a

day is enough

4 Micro fiber mesh Removes all visible

dirt.

Enhances the life of

the compact corbon

Trap

5 Compact Carbon Trap-

corbon block

Removes dirt,

parasites and

pesticides.

Protects your family

from all water bone

disease.

6 Germkill process-

sustained release chlorine

technology.

Targets and kills all

bacteria and

virus.

Same as above

7 Germkill process-Battery

Life Indicator

Lets you know when

the battery is

exausted and has to

be replaced

Gives you time to buy

a new battery

8 Germkill process-Battery Full Red colour Same as above

63

Life Indicator indicates that the

battery power is

exhausted.

9 Polisher Removes all odor and

colour from the

water.

Gives you great tasting

and looking water.

10 Bottom chamber-9 ltr.

Capacity

You can store your

daily requirement of

water in this chamber

No chance of

recontamination.

11 Material ABS/SAN High quality, food

grade plastic.

Light, strong, durable

and good looking

device

64

Unique Advantages of Pureit

2.2 Existing system

Product analysis (Pureit)

Pureit- a water purifier designed and developed to provide “as safe as Boiled water”

Performance

Pureit removes visible dirt, kills all viruses and bacteria, removes parasites and

pesticide impurities giving you water that is ‘as safes as boiled water’

Additional Features:

Great sensorial – Clear, odour -free water : removes organics, pesticides,

suspended matter (turbidity)

Any time , any where performance : works

65

- Without electricity

- Without piped water

Convenience – No hassles of boiling, No maintenance costs like plumbing

Cost – Rs. 1/- for every 4 Liters of water

The Technology:

Chlorination of water is a known fact & is used as a world wide phenomenon

by municipal corporations for supply of potable water.

It kills all bacteria and viruses in water.

However chlorine added I n water by these corporation is not done

scientifically especially in third world countries like). Hence the amount of

chlorination may be more or less depending on the quantity of water; thus

again making this water unsafe for human consumption.

66

← Frame

← Non woven (polyester

cloth filter)

MICRO FIBRE MASH

Material – Non woven polyester

Removes suspended particulate > 10 micron

Reduces filtration load on CCT

Average flow rate of 5 lit/min

COMPACT CARBON

TRAP

Material – intermediate

activated carbon

Binder is used for holding

the carbon granules

Removes particulate

impurities < 10 micron

Removes organic load –

improves taste of water

Removes pesticides

Removes cysts

67

GERM KILL PROCESSOR

Attached with batching chamber.

Stored germ-kill power target and kill harmful viruses and bacteria

Unique Auto Switch off Technology –

> After the battery life indicator turns fully red, the purifier will begin to

overflow from the battery life indicator on the front side.

> Some water may still pass through the purifier. However, please note

that the purifier has stopped purifying water & the water may no longer

be safe for drinking.

> The purifier has been designed to overflow to indicate that the battery

has not been replaced even after it has turned fully red.

68

POLISHER

Made by activated granular carbon and coated by silver.

This design has reduced pressure drop, eliminating the level of fines coming in

the water and reduced wastage of plastics in battery

Removes chlorine and disinfection by-products.

Radial flow design – low pressure drop.

Finally removes all odour, makes water visually clear & gives great tasting

water

Pureit is a water purifier made by Hindustan Unilever. It is sold in India. Pureit is

claimed to meet the E.P.A. germ kill criteria but it has not been substantiated whether

actual EPA Guide Protocol has been used. There are doubts whether Pureit actually

meets the germ kill criteria under the actual EPA Guide Protocol. Moreover, during a

legal battle in Mumbai High Court in 2009, some evidence was presented that the

chlorine tablet used in Pureit is not approved by EPA (under EPA Registration

requirements for chemical disinfectants under United States FIFRA laws) for in-home

water purifiers, and therefore, the use of 'EPA' in Pureit's marketing literature was

argued to be misleading. EPA registration requires proving that the chemical poses no

risks to public, animal or aquatic life in the proposed end-use format, such as an in-

69

home water purifier like PureIt. No further information is available as the case was

settled out of court.

Market share of purifiers

• Aqua guard is the market leader with approximately 68% market share.

• Aqua sure and Pureit, together account for 20% of water purifiers sold and are

reported to be growing at 100 percent per annum.

• Two thirds of the existing water purification market belongs to UV water purifiers

and one third is shared between reverse osmosis purification systems and chemical

purifiers.

Institutions that have tested Pureit

Pureit has been tested by numerous institutions around the globe.

Medical institutions

SRL Ranbaxy Clinical Reference Laboratories, Mumbai, Maharashtra.

Sundaram Medical Foundation, Chennai, Tamil Nadu.

King Institute of Preventive Medicine, Chennai, Tamil Nadu.

Scientific institutions

Indian Public Health Association, Kolkata.

Institute of Public Health Engineers, Kolkata.

National Institute of Cholera and Enteric Diseases, Kolkata.

Central Food Technological Research Institute, Mysore, Karnataka.

National Environmental Engineering Research Institute, Chennai, Tamil Nadu.

International institutions

London School of Hygiene and Tropical Medicine, UK.

Scottish Parasite Diagnostic Laboratory, Glasgow, UK.

70

2.3 Need for change in system

For the company-

Company should introduce the hardness removing technology in the existing

product range which will give drastic increase in sales.

The problems should resolve in one time call by opening customer care 24X7.

The problem should register at any time and should be solved by next day.

Free services should provide time to time which increase the life of the

product.

Proper customer feedback should be taken for the technicians who will

provide after sales service which will update customer satisfaction and

performance of the technicians.

The 48 hours time limit should be decreased to 6 hours time limit which will

reflects the faster after sales service.

Attend to the complaints as soon as it arrives to avoid customer dissatisfaction.

Company can make Pureit available in various other colors as well due to

different preferences of customers.

71

2.4 Proposed system

There are various complaints regarding after sale service of the product.and there is

not any systematic methods of giving service to the old customers. So there should be

some rule regarding customer complaints and delay in giving service to customer. In

the research I have analysed that there are many customers who are not satisfied with

after sale service of HUL Pureit. This is right that product is excellent but there is

need of improvement in service delivery. I think in HUL there should be some

employee for giving service only. There should be any rule like after customer

complaint the service will be given within 24 hours etc. and also pureit is available in

two colours so we can increase product in some other colors also.

72

Chapter 3

Present condition with special reference to the

Organization/industry concern

73

HINDUSTAN UNILEVER LIMITED

PURE IT

ABOUT THE PRODUCT

Pureit is the world’s most advanced in-home water purifier. Pureit, a breakthrough

offering of Hindustan Unilever (HUL), provides complete protection from all water-

borne diseases, unmatched convenience and affordability.

Pureit’s unique Germkill Battery technology kills all harmful viruses and bacteria and

removes parasites and pesticide impurities, giving you water that is "as safe as boiled

water". It assures your family 100% protection from all water-borne diseases like

jaundice, diarrhea, typhoid and cholera. What’s more, it doesn’t need gas, electricity

or continuous tap water supply.

Pureit not only renders water micro-biologically safe, but also makes the water clear,

odorless and good-tasting. Pureit does not leave any residual chlorine in the

output water.

The output water from Pureit meets stringent criteria for microbiologically safe

drinking water, from one of the toughest regulatory agencies in the USA, EPA

(Environmental Protection Agency).

The performance of Pureit has also been tested by leading scientific and medical

institutions in India and abroad. This patented technological breakthrough has been

developed by HUL. This state-of –the-art engineering developed by a team of over

100 Indian and international experts from HUL and Unilever Research Centers has

made Pureit possible at the consumer price of just Rs. 2000.

Pureit runs with a unique ‘Germkill Battery Kit’ that typically lasts for 1500 litres of

water. The ‘Germkill Battery Kit is priced at Rs.365. This means consumers will get 4

litres of water that is ‘as safe as boiled water’ for just one rupee, which works out to

an extremely affordable 24 paise per litre.

KEY BENEFITS OF PUREIT

74

Pureit gives you manifold benefits. Some of the key benefits are as follows:

1. UNMATCHED SAFETY- No water-borne diseases. No tension

Pureit removes visible dirt, kills all harmful viruses and bacteria, removes

parasites and pesticides impurities giving water that is “as safe as boiling water”.

Therefore, it provides assured safety of drinking water as well as assured water to

wash vegetables and cereals, prepare tea and coffee or make ice cubes. This way,

Pureit assures you and your family of 100% protection from all water-borne

diseases like jaundice, diarrhea, typhoid and cholera.

2. UNMATCHED CONVENIENCE

Pureit doesn’t need gas, electricity or continuous tap water supply, making it an

absolutely hassle-free water purifier.

3. UNMATCHED SAVINGS OF MONEY

Pureit provides “as safe as boiling water” at an extremely affordable price. It saves

the cost of expensive gas required for boiling water. It saves electricity costs, or

any costs of installation, plumbing, service and maintenance.

WORKING OF PUREIT

Pureit in-home purification system uses a 4 stage purification process to deliver “as

safe as boiled water” without the use of electricity and pressurized tap water. Pureit

purifies the input drinking water in four stages, namely:

1. Micro-fiber Mesh - Removes visible dirt.

2. Compact Carbon Trap - removes remaining dirt, harmful parasites & pesticide

impurities.

3. Germkill Processor – uses 'programmed chlorine release chlorine technology'  and

its stored Germkill process targets and kills harmful virus and bacteria.

4. Polisher – removes residual chlorine and all disinfectant by-products, giving clear

odorless and great tasting water.

75

5. Battery Life Indicator - Ensures total safety because when the Germkill power is

exhausted, the indicator turns red, warning you to replace the battery.

Advanced Auto-Switch off - In case, the battery is not changed when it turns fully

red, as an additional assurance of safety, the advanced Auto-Switch off will

automatically switch-off the flow of water.

MARKETING STRATEGY FOR PUREIT

Pureit, which marked the company’s entry into the consumer durables business, was

introduced in 2005 in Chennai and then in other southern markets before its national

launch early this year.

Once the roll-out of the product in the urban markets was completed, HUL launched

Pureit in rural markets. The company also made substantial investments in sales and

distribution and advertising and promotions to ramp up its presence in the urban

markets. For rural markets, it had tied up with various government agencies and non-

profit organizations.

The most important strategy adopted by the company is the 1 crore challenge. The

company mentioned three conditions that were to be fulfilled for claiming 1 crore.

These were that the product you are claiming should be one which works without

electricity should have battery life indicator and should be certified by EPA

(Environmental Protection Agency

.Company also setup kiosks at different places. Kiosks are small brown colored stalls

with 2- 3 guys standing. The guys have a device of Pureit with them. The guys very

professionally entertain the customers by making them aware about the water borne

diseases and also tell them about the benefits that the product will provide the

customers with. They keep explaining it and the word Hindustan Unilever is very

prominent in their description. These kiosks are setup at different areas like markets,

places which are populated etc.,

The company has also added 2,500 more executives within nine months to Pureit’s

existing sales team of 7,500. Besides traditional advertising such as television

commercials, the company is promoting the product through non-traditional channels

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such as hospitals, clinics, government and non-government bodies and health care

agencies.

The water purifying business is a potential market of 1500 crore approximately in a

country where large areas lack access to safe drinking water. About 80% of India’s

domestic water supply comes from groundwater, according to the World Bank, in a

country where water-related diseases are common.

COMPETITORS OF PUREIT IN INDIAN MARKET

At present there are lots of companies in the market of water purifier. Now people are

more aware of pure water than before that’s why the demand of water purifiers

increasing day by day lots of companies are showing interest in making water purifier.

Some of them we mentioned below:

1. Kent grand:

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Kent - GrandProduct Summary: This storage water purifier has 8 Liters water storage capacity

and 5 purification stages like- Sediments purification, Pre-Carbon Filter, carbon

purification, UV and Reverse Osmosis technology purification. Its Reverse Osmosis

Technology, it uses semi-permeable membrane to divert dissolved salts, heavy metals,

chemicals, micro-organisms and other impurities to drain. In later stage it has resin

carbon cartridge, which polishes water to ensure fresh testing water. The Ultra-violet

purification system has a lamp which helps in eliminating bacteria and viruses thus

providing safe drinking water.

2. Philips intellegent:

Water purification

Philips established its new water purifier business, having achieved a 30% retail

market share in India with its UV water purifier and becoming the Brazilian market

leader in the on-tap water purifier category.

3. Whirlpool Pure Fresh:

Whirlpool launches Purafresh water purifiers :

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The Purafresh series is available in three models - Platinum, Elite and Deluxe Aiming

to provide the best in class products to its consumers, Whirlpool India, subsidiary of

Whirlpool Corporation, unveiled its new range of ‘Purafresh’ Reverse Osmosis Water

Purifiers.

Equipped with Whirlpool’s patented '6th Sense' technology, the new ‘Purafresh’ water

purifier claims to be the only Reverse Osmosis system on the market that not only

purifies but also protects the purity and freshness of the water with its prestigious gold

seal certification (from GOLD Seal of Water Quality Association, USA WQA).

Purafresh RO range is the only RO water purifier range in India to get this gold seal.

Priced between Rs 14, 450 – Rs 22,950, Purafresh is available in three models –

Purafresh Platinum, Purafresh Elite and Purafresh Deluxe.

The high end Purafresh platinum model, Whirlpool claims, is India’s first and Only

Direct Flow RO with no storage tank enabling immediate consumption of freshly

purified water with 72 ltrs per hour capacity (Normal RO products have 8-10 ltrs per

hour capacity). It has an advanced 5-stage purification process and also boasts a first–

of–its–kind electronic interface with a ‘Filter change indicator’, which alerts the

consumer on the need to change the filter and thus ensures continual purity &

protection of the water. Other diagnostics functions like no water on tap indication,

self cleaning mode indication, and water extraction indication makes it the most

advanced and best in class product.

Purafresh Deluxe and Elite models deliver the promise of ‘pure and fresh water

through its 6-stage purification process and unique ‘silver ceramic cartridge’ in the

tank which prevents growth of any microbes in post-purified water. The air-tight

storage tank further prevents entry of any contaminants post purification.

4. Jaipan:

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Description:

Jaipan water purifier.

Technical specification:

o Voltage :

With SMPS: 100 to 270v 50hz.

With STD: 180v to 230v 50hz

Features:

o Stainless steel u v chamber.

o Futuristic surface mount technology.

o State of the art switches mode power supply.

o I.C. controlled electronic monitoring systems.

o Eco-friendly power saver "sleep" mode.

o Silver impregnated activated carbon handle.

o Solid state electronic ballast.

o Musical water indication with dual l.ed.

o Warranty : 2years

5. Alpha Dewdrop:

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Alfa Dewdrop

This storage type water purifier has 4.5 litres water storage capacity and 4 purification

stages like- Pre-filter Sediments purification, Carbon filter, Reverse Osmosis

technology and Post Reverse Osmosis purification. Reverse Osmosis uses semi-

permeable membrane to separate dissolved salts, heavy metals, chemicals,

microorganism and other impurities to drain. In later stage it has resin carbon

cartridge, which polishes water to ensure fresh testing water. It is a tabletop design

and can be placed over the counter. Price - Rs 14,990

6. Eurotek System:

Product we incorporate explicit qualities in our products. We procure rust free raw materials & use sophisticated and latest machinery. We assemble water purifier & RO system and then sell them. The filtered water obtained from this purifier is highly hygienic & safe to drink. Rigorous process is followed to constantly enhance the design & efficiency of our products. Our appliances are available in most competitive industry prices. We also customize our products as per the clients demand.

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Some important features of our products are as following:

Easy maintenance

Less electricity consumption

Low noise

High operating speed

Maximum output

7. GenPure R.O System:

GenPure Reverse Osmosis (R.O.) system - is a Home RO Drinking Water System for

ultimate purity and good taste. It provides you the quality of bottled mineral water and

the convenience of producing it at home. Its multi-stage purification process and RO

technology, not only physically removes unwanted and life threatening micro-

organisms, but also removes harmful chemical pollutants and heavy salts present in

the water, to ensure clean and healthy drinking water.

Unique Features:

Six Stage Water Purification System

Smart LEDs for Power On, Purification On, Low Pressure Cut-Off & Auto

Flush On

Automatic RO Membrane Flushing System to flush out impurities

External pre-filter and anti-scalent to enhance the life of RO Membrane

In-built SMPs for voltage protection

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Auto Low pressure cut-off. Automatic On/Off water level micro-switch

Purification Capacity: up to 12 LPH

Tank Capacity: 8 Ltrs

Dimension: L: 10" x B: 5" x H: 13.5"

Weight: 10.5 Kg

Purification Stages:

1st Stage: External Dust Filter

2nd Stage: Anti-scalent Cartridge

3rd Stage: Pre Carbon Cartridge

4th Stage: Sediment Spun PP Filter Cartridge

5th Stage: RO Membrane

6th Stage: Post Activated Carbon Cartridge

8. KENSTAR-WATER-PURIFIER:

Kenstar a recognize company launches a new brand of water purifier. They claim that

the customer will be satisfied after using this product.

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9. Krona

Features:

Krona creates way to a safer & healthier Lifestyle through its RO Water

Purifiers

Industrial activities & urban growth have increased the strain on Natural &

Ecological resources

Krona, a time tested and a reliable name on which people can rely & place

their full confidence upon for - Pure Drinking Water

With several years of experience in the Water Treatment Industry, they offer a

variety of Services & Solutions to combat the ever-increasing demand for

clean, safe drinking water

Krona comprises of a dedicated team of Engineers, Technicians &

Administrators who are trained in their respective fields to provide Superior

Quality Products & Unmatched Customer Service

Krona offers a wide range of RO Water Purifiers, Dispensers & Parts that

speak of Quality, which is strongly supported by NSF, Certification, which is

recognized Worldwide

The company is committed to using its collective Knowledge, Experience &

Expertise to Develop Products, Systems & Services, which are incorporated

into the Widest Range of Water Treatment Equipments

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The expertise required to maintain such high Standard of Systems & Services

comes from ongoing R&D of Process & Control, Manufacturing Technology

& Colloidal Chemistry

Warranty: 1 Year Manufacturers Warranty

10. Astro-boy-water purifier:

Astro boy a recognize company launchesa new brand of water purifier. They claim

that the customer will be satisfied after using this product.

11. EuroFabs

It’s newly introducing a unique Water Purifier with the proud name of Eurofab. The

necessity of which has been felt for a long time. Our equipment will completely

purify the water with easiness to install, convenient and comfortable to operate by any

person. The internal mechanism of water purification provides you with absolutely

purified high quality of water which is capable and comparable with the machine of

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international standards. it heartily invite customers and welcome to this new venture,

thus insuring you of providing with purified, quality water for a better long healthy

life of you and your family members.

12. Aqua fresh Water Purifier P7

Brand Name: Aquafresh Waterpurifier P7

Place of Origin: India Delhi

Detailed Product Description

In this model, complete product is made of high grade stainless steel.

Retains natural quality of water

 A unique EMS to monitor the purification process

Solenoid Valve for regulation of water flow

Feather Touch Switch to ensure smooth & shock proof operation

Wide working voltage range for protection against fluctuations

13. Eureka Forbes-Aqua Guard

Eureka Forbes is pioneer in Home water purifiers, RO water purifiers, UV water

purifiers in India. They are specialist in 5 water technologies addressing 17 diverse

water conditions and are the World's largest manufacturer of Ultraviolet (UV) based

water purification system.

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The most important appliance in your kitchen is the water purifier. Regular filters are

not enough to kill the bacteria present in water supplied to most Indian homes. The

finance minister has promised clean, drinking water to one and all by making water

purifiers cheaper than what they used to be. With affordable water purifiers available,

pure clean drinking water will no longer be a luxury. Time, we thought, you tried this

test to check out how well equipped you are in your knowledge of water purifiers.

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Chapter 4

Summary, Conclusion and Suggestions

4.1 Summary of the system

Water is an essential part for everyone’s life. Clean drinking water is essential to

human and other life forms. Mostly tap and well water are not safe for drinking due to

heavy industrial and environmental pollution. Access to safe drinking water has

improved steadily and substantially over the last decades in almost every part of the

world.

The water purifying business is a potentially lucrative opportunity in a country where

large areas lack access to safe drinking water. About 80% of India’s domestic water

supply comes from groundwater, according to the World Bank, in a country where

water-related diseases are common.

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In order to prevent the spread of water-borne infectious diseases, people should take

adequate precautions. The city water supply should be properly checked and

necessary steps taken to disinfect it. Water pipes should be regularly checked for leaks

and cracks. At home, the water should be boiled, filtered, or other methods and

necessary steps taken to ensure that it is free from infection.

According to the research it is found that the main source of water for about 96.7%

consumers is municipal water. Water being essential part of life only 30% of the

consumers considered it safe for drinking. It was found that 72.7% of the customers

are aware that 80% of diseases are caused by drinking contaminated water.

Consumers purify their drinking water either by boiling it, using candle filtration,

electrical purifiers or non-electrical water purifier and the most preferred being in the

range of less than or equal to Rs.2000.

Seeing the competition among different water purifiers HUL also launched its water

purifier which works without electricity and provides as safe as drinking water. It was

found that 92.7% of consumers were interested in knowing about the product .The

company uses various marketing strategies to make consumers aware about the

product and after doing the survey it is found that everyone has heard about the

product either through T.V commercials, references, outlets or clinics but only 16.7%

consumers are using it. Only 22.7% consumers said that they are aware of the fact that

Pureit provides 4 litres of water in just one rupee. They are interested to know more

about it and want to see a demo of it so that they can buy it.

So it can be said that people are becoming aware of water-borne diseases and take

measures to prevent their family from being infected by these diseases. HUL has also

worked a lot to make people aware about such diseases and has provided people with

in-home water purifier which has helped them a lot, a purifier which is in reach of

every common man. The company should mainly target the people whose source of

drinking water is municipal water. No doubt everyone has heard about the but the

company should provide education to the consumers regarding safe drinking water by

setting educational camps or should do more advertisement showing people the

benefits of safe drinking water. The company should also set up more outlets and

install their product at maximum number of clinics so that consumers become more

aware of it.

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Soon HUL, unlike other players of water purifiers will also be able to capture a large

share in the market as their marketing strategies are positively working for them and

people are becoming aware of their purifier and if the company continues to spread

the awareness among consumers about water-borne diseases and provide them with a

solution their product will be a great success. The company is also coming with a

purifier that will target premium class and give competition to RO and UV purifiers.

4.2 Scope of the system

The scope of the study can be defined in 2 ways –

Geographical Scope-

Though the study is covering south Delhi, here have analyzed the scope of water

purifier(pureit) in the market and the response of customer on this new innovation , as

we know south Delhi is one of the best market in Delhi through analyzing it we are

able to identify the customer response..

Market Scope-

Here I have analyzed the various modes of entering in the market in order to find the

potential customer for the WATER PURIFIER (PUREIT) Of HUL. I targeted mainly

that how should they introduce their new innovation in market and how best they can

segment the market in order to give the right way to all their resources.

4.3 RECOMMENDATION & SUGESSTION

o Although Hindustan unilever- pureit is capturing a large market share, still

there are certain things which the company should take care of. They are:-

o Maintain long term customer relationships by providing valuable after sales

service,

o Promotional events should be done in a regular basis to keep the people

aware about the new technologies and products and also to prevent new

companies from capturing the market,

o The company should take initiative to give maximum features and design

in minimum price range.

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o Price structure should be revised

o Customer service is something which company should pay more attention at.

o Should focus more on brand awareness.

o Service should be improved in order to maintain long term relationship with the clients.

MARKET RESEARCH QUESTIONNAIRE

QUESTIONAIRE

1. Do you consider water as an essential part of ones living?

o Yes

o No

2. What is your existing source of drinking water?(tick any one)

o Municipal water

o Bore water

o Canned water

o Tanker water

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o Don’t know

3. Do you consider that the water you are provided with is safe for

drinking?

o Yes

o No

4. Are you aware of diseases that are caused by drinking contaminated

water?

o Yes

o No

5. Do you know that 80% of the diseases in our country are water bound?

o Yes

o No

6. Do you take any measures to prevent these diseases that may harm your

family?(If No, move to Question 11)

o Yes

o No

7. Are you using any purification method to purify water?(tick any one)

o Boiled water

o Use candle filtered water

o Canned water

o Use electrical water purifier

o Use non electrical water purifier

8. Are you aware of the technology used in your purifier?

o Yes

o No

9. What is the cost of the purifier you are using?

o Less than or equal to Rs.2000

o More than Rs.2000 to less than Rs.6000

o More than Rs.6000 to less than Rs.10,000

o More than Rs.10,000

10. After how much time do you go for the service of your purifier?

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o 3 months

o 6 months

o 9 months

o 1 year

11. Will you be interested in knowing about a product that gives “as safe as

Boiled water” without the use of gas or electricity?

o Yes

o No

12. Have you heard about Hindustan Unilever Limited’s Pure it?

o Yes

o No

13. Are you already using Pureit?

o Yes

o No

14. How did you come to know about Pure it?

o T.V commercials

o References

o Outlets

o Clinics

15. Do you know that Pureit provides 4 litres of water just in 1 rupee and that

too without any gas or electricity?

o Yes

o No

16. Will you be interested in seeing the Free Home demo of Pure it?

o Yes

o No

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BIBLIOGRAPHY

1. WEBSITES

www.scribd.net

www.hul.co.in

www.wikipedia.org

www.customercomplaint.in

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www.compareindia.com

www.pureit.in

www.bseindia.com

www.google.com

2. SUMMER INTERNSHIP MANUAL

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