research problem and its

7/28/2019 Research Problem and Its

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RESEARCH PROBLEM AND ITS RELEVANCE

RESEARCH PROBLEM

HUL is facing the problem rather challenges from

Continuous changes in the taste and preferences of the customers such problems wereidentified as Research Problems and the objective statement was formed on its basis.

Large no. of players in the marketRELEVANCE OF THE RESEARCH

The relevance of the research is to find out

Acceptability among the customers Promotional analysis

SCOPE OF THE RESEARCH

The scope of the research has been limited to the JAIPUR City. Keeping in mind the

objective stated, questionnaire was designed for the people. Subsequently a

research was conducted.

RESEARCH METHODOLOGY:

There is large no. of FMCG companies in the market, to find the defining strategies

used, the methodology used is interview and survey method.

Data Collection Method

For this research study, primary data as well as secondary data was collected.

Primary Data

It has been collected through personal contact. For this purpose both

questionnaire and one-on-one interview was considered with the consumers, shopowners and distributors & suppliers of the company.

Secondary data

It has collected from magazines, newspaper, company literature and websites.

Data analysis:

Analyzing codes to each question were awarded. There after every questionnaire was written.

After which the data were analyzed.


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MAJOR FINDINGS

Major competitors

D a b u r

J h a n d uJ o h n s o n & J o h n s o n

C a v i n C a r e

P r o c t e r & G a m b l e

B r i t a n n i a

I T C

G i l l e t t e

METHODOLOGY FOR RESEARCH PROBLEM

Following steps were taken in to consideration, to identify the research problem-

1 . I n f o r m a l i n v e s t i g a t i o n

Visit to the shop owners, talked to the distributors and to the consumers in the locality and

surrounding areas.

2. External and Internal Analysis

Understanding customer problem

Understanding the market structure

3 . S i t u a t i o n a l A n a l y s i s

Tastes & preferences

Needs & income

Major Competitors, ITC, Dabur, Procter & Gamble, Cavin Care, Amul, Johnson & Johnson,

etc

A comprehensive study of secondary and primary data (informal

interviews) was collected through specif ic quest ionnaires for people, shop

owners and distr ibuters.


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SAMPLING TECHNIQUE

For my survey I used

Cluster Sampling

I selected a sample of 100 people around the area and interviewed them according to

the questionnaire. In the survey I tried to find out their preferences & tastes, their purchasing

habit, are they brand loyal or they consider their friends advice or some reference group

during purchasing. I also tried to find out that are they satisfied with the quality or present

stature of product, did they want any change in the existing product. I also interviewed some

of the shop owner and distributors and try to find out what the company is doing to sustain

their customer and what new changes they are bringing in their product to gain competitive

advantage from other competitors

RESEARCH INSTRUMENT

Research instruments, for the purpose of primary data collection were Questionnaires.

The Questionnaires were designed in two sets, one is for customers and another is for shop-

owners and distributors.

The first set is to find out about the needs and preferences of the customers and what they

want from in the product and also the level of knowledge about different

products in the market.

Second set is all about what are the steps company are taking to get about

thei n f o r m a t i o n a b o u t h e c h a n g i n g p r e f e r e n c e s i n t h e t a s t e a n d n e e d s

o f t h e customers and what company is doing to sustain their market position as

well as to tap new market.

LIMITATIONS OF STUDY

1. The sample size may not adequately represent the national market.

2. This study has not been conducted over an extended period of time, it do not consider

any changes due to changes in the sudden needs of the customer because of some

sensational change or any kind of festivals.

DATA ANALYSIS

For the analysis of data collected through survey work, a series of steps were followed which

are given in a chronological order

Each question of the questionnaire was assigned codes (coding)


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Each questionnaire was punched into ms-excel sheet thus forming a data base

(punching)

Further the data was analyzed by using diagrams, graphs, charts etc.

The graphic rating scale and ranking method was used to measure the response and attitude

of the customer. Finally, an ef fort was made to extract meaningful information from

analyzed data, which acted as a base for the recommendations.

The new Hindustan Lever: Focused on FMCG

In 2000, 75% of our sales came from FMCG businesses. The rest came from several non-

FMCG businesses which were not profi table, and did not offer prospects

for long-term leadership. Besides, they were a drain on the core FMCG business, both in

terms of resource and focus. They decided to disengage from all non-FMCG

or commodity businesses. In all, we have divested and discontinued 15 businesses

including Animal Feeds, Speciality Chemicals, Nickel Catalyst, Adhesives,

Thermometers, Seeds, Mushrooms etc. With sales of Rs.1.750 crore as in 1999.Today they

are a focused on FMCG company with our branded business accounting for over

90% of sales, consisting of 35 brands across 20 categories. These will be

their m a i n e n g i n e s o f g r o w t h , w i t h h i g h e r l e v e l s o f r e s o u r c e c o n c

e n t r a t i o n , b e i t technology, people talent or media spend.

Building blocks of a strong Foods business

In Foods, there is enormous growth potential in leading the evolution of consumers

to branded and processed foods. Over the last few years they have focused on putting in place

the building blocks of a strong Foods business. Historically their Foods business was

fragmented and lacked scale. It was often commoditized with low margins. They recognized

that changing food habits would require considerable investment, which the current

business simply could not afford . Therefore they divested the non-value added parts

like Vanaspati. They have consolidated their portfolio and improved the gross margins by

over 13% through product mix and cos t reduction. They have also cleared the supply

chain of all old stock and geared up for fresh availability on shelf.

Today, their Foods business has a healthy gross margin and a supply chain driven by

freshness. The Foods business will now invest for growth through relevant innovation.


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FMCG still offers enormous potential

As the largest FMCG player it was up to them to reverse the down trading to realize its true

growth potential. They could achieve this by raising the bar and becoming world class in

what their brands offered and how they worked. Nothing less would do. Penetration levels

in several of the categories and consumption levels in all of the categories are

low by any comparison. Across the world, they are seeing a strong correlation

between income levels and the size of FMCG markets. Over the next 10years, per capita

income in India is likely to touch Chinas current levels. At those levels , the

FMCG market wil l be over Rs.100,000 crores from a current value

of Rs.40,000 crores. This is an opportunity that they have to seize.

Portfolio of Strong Brands

Their main challenge was to reverse the down trading in the categories and re-establish the

relevance of their brands in the mind of the consumer. In 2000, they had

11 0 brands, many undifferentiated and lacking scale. They chose to focus on 35

power brands covering all consumer appeal and price segments. They are already seeing

the benefits. Six brands Brooke Bond, Lifebuoy, Lux, Fair & Lovely, Rin and Wheel

have emerged as mega brands in the last f ive years, each with sales of

more thanRs.500 crores.

Better Value

The first step was to ensure that they offer world class quality and real differentiation backed

by technology to give them the advantage over low priced competition. They have invested

over Rs.400 crores, or 5% of sales, in the last three years to upgrade the brands. In several

cases they reduced prices to make the brands more affordable. Better quality

and more affordable prices have increased the value to the consumer. They have also

launched several low unit size and price packs for single use to make the brands more

accessible to all income groups. For example, they are the first to introduce

branded toothpas te in a tube at Rs.5 and a branded quality shampoo in a bottle at

Rs.5.

Bigger Role in Consumers Lives

Perhaps the most s ignif icant change has been to move the brands beyond

m er el ym a k i n g f u n c t i o n a l c l a i m s t o p l a y i n g a b i g g e r a n d d e e p e r r o l e i

n th e l i ve s o f consumers. They had to move f rom sel l ing soap o r a

detergent to something far more important and central to the consumers life. How


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often have we heard someone say, Soap is soap is soap? Or indeed, All detergents clean

clothes as well. In the case of Lifebuoy, it was only when they associated it with

the promise of health and protection against disease that it claimed a larger space in the

consumers mind. It moved from being a mere soap to a health essential. Today

Lifebuoy, their oldest brand, has grown at over 15% for the last three years.

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