Sajith 22451
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Transcript of Sajith 22451
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A STUDY ON THE EFFECTIVENESS
OF PROMOTIONAL ACTIVITIES
UNDERTAKEN BY EUREKA FORBES
LIMITED, RETAIL DIVISION, COCHIN
Report of the Research Project submitted in partial fulfillment of
the requirements for the MBA (Full time) Degree of the
Mahatma Gandhi University
Submitted by
Sajith P George
Reg. No.22451
2010-12 Batch
Focus on Excellence
FISAT BUSINESS SCHOOL
Hormis Nagar, Angamaly,Cochin 683 577.
June 2012
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ACKNOWLEDGEMENT
I wish to express my sincere gratitude to all those who have supported me in completing this
project successfully. I sincerely thank Mr. Shabu G Thomas, Marketing Officer, Eureka
Forbes Limited, Retail Division, Kerala for the valuable support and feedback throughout the
project.
I would like to express my hearty gratitude to Dr. P.A Mathew, Dean & Director, FISAT
Business School, for providing the opportunity to undertake the study.
I am extremely thankful to Mr. Jose Varghese for the constant guidance and Mrs. Dhanya M
who helped me prepare the project report in its atmost clarity. I also extend my gratitude to
all other faculty members of FISAT Business School for their help and support.
Finally, I would like to thank my parents, dear and near ones and all my friends who have
helped me in the completion of this project.
Place: Angamaly Sajith P George
Date:
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DECLARATION
I hereby declare that the Project Report entitled "A Study on the Effectiveness of
Promotional Activities Undertaken by Eureka Forbes Limited, Retail Division, Cochin" is a
record of bona fide work done by me in Eureka Forbes Limited, Retail Division, Cochin,
Kerala during month of June 2012 under the supervision of Mr. Shabu G Thomas, Marketing
Officer, Eureka Forbes Limited and Mr. Jose Varghese, Assistant Professor, FISAT Business
School and that no part of this Report has formed the basis for award of any degree, diploma,
associateship, fellowship or any other similar title or recognition in any other institution.
Place: Angamaly Sajith P George
Date:
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CERTIFICATE OF ORIGINALITY
This is to certify that this report entitled A Study on the Effectiveness of Promotional
Activities Undertaken by Eureka Forbes Limited, Retail Division, Cochin submitted to
Mahatma Gandhi University in partial fulfillment of the requirements for the award of the
degree, Master of Business Administration, is a bona fide record of the project study
undergone by Mr. Sajith P George. It is prepared under my guidance and has not been
submitted, in full or part thereof, to any University/Institution for the award of any degree or
diploma.
Dr.P.A.Mathew Mr. Jose Varghese
Dean & Director Assistant Professor
Place: Angamaly
Date:
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TABLE OF CONTENTS
Chapter Title Page No.
1 INTRODUCTION 1
1.1 Importance of the Study 2
1.2 Need and Relevance of the Study 3
1.3 Components of the Study 4
2 REVIEW OF LITERATURE 5
3 CONCEPTUAL OVERVIEW 8
4 INDUSTRY PROFILE 13
5 COMPANY PROFILE 16
6 RESEARCH METHODOLOGY 25
6.1 Objective of the Study 26
6.2 Scope of the Study 26
6.3 Research Design 26
6.4 Population Characteristics 27
6.5 Sample Design and Sample Size 27
6.6 Sources of Data 27
6.7 Tools and Methods of Statistical Analysis 28
6.8 Hypothesis for Testing 29
6.9 Limitations of the Study 30
7 DATA ANALYSIS & INTERPRETATION 31
7.1.1 Customer Profile - Location 32
7.1.2 Age Group 33
7.1.3 Gender 34
7.1.4 Income 35
7.2 Mode of using drinking water 36
7.3 Brand Awareness - Unaided Recall for Water Purifiers 37
7.4 Brand Awareness - Unaided Recall for Vacuum Cleaners 38
7.5 Awareness Aided Recall 39
7.6 Source of Information 40
7.7 Frequency of Promotional Activities 41
7.8 Brand Association 42
7.9 % of Customers surveyed 43
7.10 Promotional Activities Competitors 44
7.11 Brand Preference Water Purifiers 45
7.12 Brand Preference Vacuum Cleaners 46
7.13 Purchase place 47
7.14 Prior knowledge of Products 48
7.15 Influencing Factor AquaSure Water Purifier 49
7.16 Influencing Factor Forbes Vacuum Cleaner 50
7.17 Programmes/Events 51
7.18 Influence of programmes/events on purchase decision 52
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7.19 Customer Retention 53
7.20 Product Acceptance 54
7.21 Hypothesis 1 55
7.22 Hypothesis 2 56
7.23 Hypothesis 3 57
7.24 Hypothesis 4 58
8 FINDINGS, SUGGESTIONS AND CONCLUSION 60
8.1 Findings 61
8.2 Suggestions 63
8.3 Conclusion 64
9 BIBLIOGRAPHY 65
10 APPENDIX 67
10.1 Questionnaire 68
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LIST OF TABLES
Table Title Page No.
7.1.1.1 Customer Profile - Location 32
7.1.2.1 Age Group 33
7.1.3.1 Gender 34
7.1.4.1 Income 35
7.2.1 Mode of using drinking water 36
7.3.1 Brand Awareness - Unaided Recall for Water Purifiers 37
7.4.1 Brand Awareness - Unaided Recall for Vacuum Cleaners 38
7.5.1 Awareness Aided Recall 39
7.6.1 Source of Information 40
7.7.1 Frequency of Promotional Activities 41
7.8.1 Brand Association 42
7.8.2 Brand Association (Ranking) 42
7.9.1 % of Customers surveyed 43
7.10.1 Promotional Activities Competitors 44
7.11.1 Brand Preference Water Purifiers 45
7.11.2 Brand Preference Water Purifiers (Ranking) 45
7.12.1 Brand Preference Vacuum Cleaners 46
7.12.2 Brand Preference Vacuum Cleaners (Ranking) 46
7.13.1 Purchase place 47
7.14.1 Prior knowledge of Products 48
7.15.1 Influencing Factor AquaSure Water Purifier 49
7.15.2 Influencing Factor AquaSure Water Purifier (Ranking) 49
7.16.1 Influencing Factor Forbes Vacuum Cleaner 50
7.16.2 Influencing Factor Forbes Vacuum Cleaner (Ranking) 50
7.17.2 Programmes/Events 51
7.18.1 Influence of programmes/events on purchase decision 52
7.19.1 Customer Retention 53
7.20.1 Product Acceptance 54
7.21.1 Sales Data Water Purifier 55
7.22.1 Sales Data Vacuum Cleaners 56
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LIST OF FIGURES
Fig. Title Page No.
7.1.1.1 Customer Profile - Location 32
7.1.2.1 Age Group 33
7.1.3.1 Gender 34
7.1.4.1 Income 35
7.2.1 Mode of using drinking water 36
7.3.1 Brand Awareness - Unaided Recall for Water Purifiers 37
7.4.1 Brand Awareness - Unaided Recall for Vacuum Cleaners 38
7.5.1 Awareness Aided Recall 39
7.6.1 Source of Information 40
7.7.1 Frequency of Promotional Activities 41
7.9.1 % of Customers surveyed 43
7.10.1 Promotional Activities Competitors 44
7.13.1 Purchase place 47
7.14.1 Prior knowledge of Products 48
7.17.1 Programmes/Events 51
7.18.1 Influence of programmes/events on purchase decision 52
7.19.1 Customer Retention 53
7.20.1 Product Acceptance 54
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EXECUTIVE SUMMARY
The project is a study on the effectiveness of promotional activities undertaken by Eureka
Forbes Ltd, Retail Division, Cochin. The study is done with the intention of getting a deeper
insight into the significance of promotion in communicating the indented information to the
consumers. It will assess ability of the companys promotional activities in generating
awareness, affecting sales, improving product acceptance, retaining customers and building a
positive brand image. The study will be helpful for the companys marketing department in
evaluating their promotional strategies and making suitable changes to the same if found
necessary. It will also provide necessary input for further studies and exploration in the
similar field.
Eureka Forbes Limited is a pioneer in providing water purification and cleaning solutions in
India. It is a market leader in both water purifier and vacuum cleaner segment. AquaSure
Water Purifiers and Forbes Vacuum Cleaners are its products which cater to the retail
segment. Other brand like AquaGuard and EuroClean are sold through direct selling. The
study assumes greater significance in the state of Kerala since the problem of water
contamination and hygiene is high. The public has to be educated about the importance of
using these products and promotion is an important tool in this regard.
Objectives of the Study
Primary Objective
To study the impact of various promotional activities undertaken by Eureka Forbes, Cochin
on customer buying behavior.
Secondary Objectives
The secondary objective is to study the extend of brand awareness and product acceptance
generated, to study the impact of promotion on sales, to find out the most effective media for
communication and also to study the relationship between the awareness level and the
demographic profile of the customer.
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Research Methodology
The study is carried out for a period of 2 months in the state of Kerala, India. It involves data
collection from both primary and secondary sources. The primary data is collected through
questionnaires and direct interview of customers of Eureka Forbes as well as non-customers.
The sample size was restricted to 100. Secondary data was collected books, company files,
magazines, newspaper articles and the company website.
The study is coordinated from Eureka Forbes Relail Division Office at Cochin and is
restricted to the products sold only through Retail outlets across Kerala. The products under
study are AquaSure Water Purifiers and Forbes Vacuum Cleaners.
Limitations of the Study
The customers to be surveyed are highly scattered and there are possibilities of biased
responses. The time allotted to do carry out the project is also limited and hence the sample
size had to be restricted to 100.
Important Findings
1. The Brand name Eureka Forbes and also the product names are highly popular among
the public which shows high degree of awareness.
2. Traditional print media continuous to be the most effective medium for communication
followed by word of mouth while social media wasnt found to be very effective in this
regard.
3. Cleanliness, health and safety were the major aspects which people could relate to
Eureka Forbes.
4. Eureka Forbes was the most preferred brand in both its product segments.
5. Quality of the products is the paramount factor that led the customers to purchase
Eureka Forbes products. Service was found to be the least influencing factor.
6. Water-Testing programmes were found to be the most attention grabbing event
organized by the company
7. The customer retention and product acceptance in case of Eureka Forbes customers is
very high.
8. The promotional activities had a significant impact in generating sales of AquaSure
Water Purifiers while it was not the same in case of Forbes Vacuum Cleaners.
9. There was a significant relationship between the awareness level and the age of the
respondent.
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Important Suggestions
1. The company should increase its promotional efforts in case of vacuum cleaners since
the awareness level about vacuum cleaners was found to be low when compared to
water purifiers. Both the products should be given equal priority while designing
promotional activities.
2. The marketer can aggressively use social media as a means of interacting with the
customers. The concept of collaborative marketing can be explored using social media
where customers along with marketing managers co-create ideas, news and
technology at the same time consuming them.
3. The frequency of advertisements or other cost-effective promotional activities needs
to be improved.
4. Better responses to customers enquiries after the purchase has been made can change
the perception about poor after sales service.
5. Road Shows as a way of publicity can be explore more by the marketer since it is
highly effective in grabbing public attention.
6. The company should try to identify areas which are pollution hotspots and make an
attempt to educate the residents there and at the same time promoting their products.
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1. INTRODUCTION
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1.1 IMPORTANCE OF THE STUDY
The study makes an attempt to understand the effectiveness of promotional activities
undertaken by Eureka Forbes, Retail Division, Cochin. The study will be significant step
towards getting a deeper insight into the role of promotion in communicating the indented
information to the consumers. Promotion as tool for communication performs the function
of informing the target customer about the nature and type of the firm's product and
services, their unique benefits, uses and features as well as the price and place at which
these products can be purchased.
This study will be helpful in understanding the role of promotional activities in generating
awareness, affecting sales, improving product acceptance, retaining customers and building
a positive brand image. It will also help determine the most effective media of
communicating with the customer and at the same time find out the relationship between the
demographic profile of the customer and the awareness generated.
The study focuses on two major products sold by Eureka Forbes Ltd through retail outlets,
i.e. AquaSure Water Purifier and Forbes Vacuum Cleaners. Since both of the products are
related to the aspects of health, hygiene and cleanliness, it is required from the part of the
company to spread the message of a healthy and disease free living even before promoting
their products. This is where the importance of promotion comes into play as a tool for
communicating these messages. The state of Kerala especially faces the problem of unclean
drinking water and unhygienic living conditions leading to various infectious diseases. In
such circumstances studying the effectiveness of promotion in educating the people about
using these products for a safe living assumes greater significance.
The results and findings of this study will make significant contribution to the companys
marketing efforts in terms of understanding the positive impact and at the same time the
shortcomings of various promotional activities. The study will encourage the marketing
department to evaluate the present promotional strategies and make suitable changes if
found necessary. This will serve all the stakeholders of the organization as an important
source of marketing information. It will also provide a valuable input for academicians and
researchers for further studies and explorations in these particular areas of study.
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1.2 NEED AND RELEVANCE OF THE STUDY
A Study was undertaken by Indian Institute of Science, Bangalore funded by Malayala
Mamorama to test the quality of drinking water in Kerala in an aim to understand their
potability. It revealed that drinking water supplied all over the state is contaminated with
coliform bacteria. Some of the reasons cited for this condition was marine water intrusion,
less rainfall, contamination of source water (surface and ground waters) by agricultural run-
off or percolation of waters laden with agrochemicals (e.g. nitrates, phosphates).
Comparatively, water supplied in rural areas were better in water quality than the water
supplied in urban area by municipalities. In order to make water potable, its necessary to
boil the water for 20 minutes. This has two major implications, the loss of water by
evaporation and the cost of fuel. This study was able to stress the relevance of using water
treating equipments and the need to educate the public about it. Promotion serves as a
fundamental tool in this regard and hence measuring its effectiveness is of higher
importance.
In the current adverse economic climate, manufacturers and retailers are being confronted
with some painful realities around the current effectiveness of their promotional activities.
As a result in the severe degradation of consumer confidence, marketers, category and brand
managers are finding that the type of promotions that have served them well in the past, are
no longer as effective. A well designed promotion mix is extremely crucial for brand
building and positioning. In fact communication or promotional mix is at the centre stage in
brand positioning and brand building activities.
Many consumers do not patronize a companys product when they are ignorant of its
existence. Insufficient and inadequate use of marketing communication tools lead to low
sales turnover. Consumers find it difficult to make repeat purchase of a product whose
communication is not motivating and captivating. Improper application of marketing
strategies sometimes rob companies the opportunity of winning new customers and also
retaining the existing ones. The problem goes a long way to hinder the growth of the firm if
urgent solutions are not offered to deal with them. It is clear that promotional policies have
become questions of acute importance to the manufacturer as well as the marketer. Hence it
is highly advisable for organizations to measure the effectiveness of promotional activities
for evaluating the existing strategies and also focus on the future.
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1.3 COMPONENTS OF THE STUDY
This study is done in Eureka Forbes Limited, Retail Division, Cochin and covers the various
promotional activities undertaken by the company. The products sold through retail outlets
only are taken into consideration, i.e. AquaSure Water Purifier and Forbes Vacuum Cleaner.
The following aspects are studied to understand the promotional effectiveness:
The demographic profile of the customer.
The awareness level among the public about the company and its products measured
through brand recall and recognition.
The source of information.
The frequency of promotional activities.
Customer brand preference.
Mode of Purchase.
Influencing factor leading to purchase.
Acceptance of the product among consumers.
Customer retention.
Hypothesis testing is done to:
Understand the impact of promotional activities on the sales of Eureka Forbes
products.
Understand the relationship between the awareness level and the residential location
of the customer.
Understand the relationship between the awareness level and the age of the customer.
The study is based on the logic that the above mentioned factors can be used as tools for
studying the promotional effectiveness. Factors like brand awareness, customer preference,
customer retention, product acceptance etc can provide an understanding of the success or
failure of promotional activities. In this particular field of study, promotion also has a
greater role in educating the public about the importance of using safe drinking water,
cleanliness and hygiene for a healthy living. This study will help in effective evaluation of
the same and taking remedial actions if found necessary.
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2. REVIEW OF LITERATURE
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A detailed study was undertaken by Indian Institute of Science, Bangalore funded by
Malayala Mamorama to test the quality of drinking water in Kerala in an aim to
understand their potability. The quality of tap water from water supplies from 14
districts of Kerala state, India was studied. Parameters like pH, water temperature, total
dissolved solids, salinity, nitrates, chloride, hardness, magnesium, calcium, sodium,
potassium, fluoride, sulphate, phosphates, and coliform bacteria were enumerated. The
results showed that all water samples were contaminated by coliform bacteria. About
20% of the tap water samples from Alappuzha and 15% samples from Palakkad district
are above desirable limits prescribed by Bureau of Indian Standards. The contamination
of the source water (due to lack of community hygiene) and insufficient treatment are
the major cause for the coliform contamination in the state. The study stressed on the
importance of regular water testing mechanisms, constant monitoring, rainwater
harvesting and most importantly using effective water purification mechanisms.
Many studies have been carried out in the past to understand the effectiveness and role of
promotional activities as a major tool for marketing communications. They provide valuable
insights into the problem under study. Some of them are:
A project entitled A Study on the Effectiveness of the promotional activities of
Grameenphone Modem was done by Abida Noor, BRAC Business School to evaluate
the effectiveness of promotional activities of Grameenphone Modem in the country of
Bangladesh. The major objectives where to study the various promotional activities that
were undertaken by the company and to measure the success/failure of promotional
activities of internet providers of the country by analyzing the impact of these activities
on sales and consumer buying preference. The study identified that traditional
advertising through television was still a popular medium to carry out promotions. The
study also recognized the importance of using the whole promotion mix rather than just
advertising to attract customers at the same time suggesting internet as the next
emerging medium for marketing communications.
A Study to find out the effectiveness of promotional strategies for organizational success
done by Sruthi of IMC Shimla was indented to find out the best promotional mix for
promoting services. It also aimed at devising the most effective ways of communication.
The study was conducted for a telecommunication company and was focused on the
telecommunication industry. The study identified that print media was the most effective
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media for communicating various schemes offered by the operator. Not far behind was
the electronic media and the study recommended increased budget allocation in this
medium. It recognized the impact of word of mouth as as medium for building brand
image. Shaping customer perceptions through better promotional efforts was important
to achieve word of mouth publicity.
Another study entitled The Role of Promotion to Marketing Strategies in Business
Organisation done By Emmanuel Nelson of Bassey College of Accountancy and
Computer Technology for Goking International Limited to understand the role of
promotion in marketing strategies concluded that that promotion has great effect in
pushing products and services down the channel to the final users. The study reveals that
the ultimate object of promotion is to affect customers /consumers behaviour and
promotion promoters marketing of products and service.
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3. CONCEPTUAL OVERVIEW
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Promotion as seen from the dimension of different scholars, professional bodies and
associates have been given various definitions. Nevertheless, it is indeed noteworthy that
each definition is unique. Promotion is a vital component of marketing and an integral
aspect of or complex social economic system. However, few of the definitions by some
authors are as follows:
According to George E. Belch and Michael A. Belch, (2001) Promotion is the co-
ordination of all seller initiated efforts to get up channel of information and persuasion to
sell goods and services or promote an idea (advertising and Promotion Fifth Edition 2001)
Scoth Ogini (2005). Promotion is the marketers tool for communicating with customers for
understanding and patronage. Promotion is a short-term incentive to encourage sales of
goods and services. It is indeed an organized way or plan of communicating function of
marketing to customers to effect behaviour of diversified buyers-target customers and taking
advantage of competition market environment. More than half of the worlds economic
activities consist of exchanges between organization and most of these are commercial
enterprises that exist to provide products or services to other firms or ultimate consumer.
Communication plays an important role in marketing. Communication perform the function
of informing the target customer about the nature and type of the firm's product and
services, their unique benefits, uses and features as well as the price and place at which
these products can be purchased. The nature of marketing communication is persuasive
since it aims at influencing the consumer behavior in favor of the firm's offering. These
persuasive communications are commonly called "Promotion". In the context of marketing
promotion refers to the applied communication used by marketers to exchange persuasive
messages and information between the firm and its various prospective customers and
general public.
Marketing communication is the essential element of the promotion function of marketing.
Effective marketing depends on effective management of its promotion function. Effective
promotion comes through effective communication. Success of products purely depends on
the promotion function played by the respective marketing firms. With the growing
competition in the market place as well as the customers becoming better informed and
more choosy, it is important now that marketing communications of the right kind only are
made to the right group of target buyers.
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Components of Promotion Mix
Integration of all the elements of promotion mix is necessary to meet the information
requirements of all target customers. The elements of the promotion mix must be
coordinated and integrated so that they reinforce and complement each other to create a
blend that helps in achieving the promotional objectives of the organization.
There are seven main elements in a promotional mix. They are:
1. Advertising - Any paid form of non-personal communication through mass media about
a service or product or an idea by a sponsor is called advertising. It is done through non
personal channels or media. Print advertisements, advertisements in Television, Radio,
Billboard, Brouchers and Cataloges, Direct mails, In-store display, motion pictures, emails,
banner ads, web pages, posters are some of the examples of advertising. Paid promotion
and presentation of goods, services, ideas by a sponsor comes under the advertisement.
2. Personal Selling - This is a process by which a person persuade the buyer to accept a
product or a point of view or convince the buyer to take specific course of action through
face to face contact. It is an act of persuading through the use of oral presentation of
products or services. Examples: Sales Meetings, sales presentations, telemarketing etc.
3. Publicity - Non-personal stimulation of demand for a product, service or business unit
by generating commercially significant news about it in published media or obtaining
favorable presentation of it on radio, television or stage. This form of promotion is not paid
for by the sponsor. Thus, publicity is news carried in the mass media about an organization,
its products, policies, actions, personnel etc. The message is in the hands of media and not
controlled by the organization/firm.
4. Sales promotion - is any activity that offers an incentive for a limited period to obtain a
desired response from the target audience or intermediaries which includes wholesalers and
retailers. It stimulates consumer demand, market demand and improve product availability.
Examples: Contests, product samples, Coupons, sweepstakes, rebates, tie-ins, self-
liquidating premiums, trade shows, trade-ins, and exhibitions.
5. Corporate image - It is important to create a good image in the sight of general public as
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the Image of an organization is a crucial point in marketing. If the reputation of a company
is bad, consumers are less willing to buy a product from this company.
6. Exhibitions - Exhibitions provide a chance to try the product by the customers. It is an
avenue for the producers to get an instant response from the potential consumers of the
products.
7. Direct Marketing - is reaching the customer without using the traditional channels of
advertising such as radio, newspaper, television etc. This type of marketing reaches the
targeted consumers with techniques such as promotional letters, street advertising, catalogue
distribution, fliers etc.
Purpose of Promotion
1. Communicating Information:
The job of marketing is to identify consumer wants and then satisfy these wants with the
right kind of products, at the right place and at the right price. The purpose of
promotion in the marketing function is to convey to customers about the features of the
product and how it will satisfy consumer wants or any other relevant information needed
by consumers to affect sales.
2. Improve Brand Awareness:
Sometimes the goal of promotion is not to generate immediate sales. It is to improve the
awareness of the brand among people. People should be able to recall and recognize the
brand from a given set of choices. Even if the goal is not to generate immediate sales,
marketing and promotion are critical for generating brand awareness that can result in
eventual sales.
3. Establish Legitimacy:
Marketing and promotion are critical for establishing the legitimacy of businesses
among the base of potential customers. Through marketing, you establish the business as
a legitimate participant in the business community. It also sends consumers a message
that one is not running a fly-by-night operation.
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4. Generate Direct Sales
Marketing and promotion can generate immediate sales for the business. To generate
this favorable return, the business needs to focus on using the right media - TV,
newspapers or Internet and message to reach your target audience.
5. Increase Value of the Business
If the main goal is to eventually sell ones business, promotion can actually increase the
value of the business. There are several methods that are used to determine the value of a
business, but most use sales and earnings as key parts of the formulas. If a business can
use marketing and promotion to improve profitability, it may see an exponential return
on that investment when it's time to sell.
6. Recruiting New Employees
Promotion creates a positive image about an organization in the minds of potential and
present employees. This is important in attracting skilled candidates for recruitment
process since without new employees, the organization will not be able to function
properly. An improved reputation also helps companies in retaining their existing
employees as they feel proud and passionate to be part of such an organization.
Measuring the Effectiveness of Promotion:
The success of a promotional activity can be measured by taking into the consideration the
following factors:
i. The increase in sales after the implementation of the promotional activity.
ii. The number of customer enquiries after the campaign and how much of these have
been converted to sales.
iii. Increase in the awareness about the company and its products among the public.
iv. Customers ability to recall and recognize the brand from among a set of choices.
v. The levels of repeat purchase by the customer.
vi. Levels of customer retention.
vii. The demographic profile of the customer
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4. INDUSTRY PROFILE
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Indian Water Purifier Industry
Globally more than one billion people lack access to safe drinking water nearly all of them
in the developing countries, including India. Nearly a third of the worlds population
worldwide live in water-stressed areas. This figure is expected to rise to two-third of the
population by 2025. In India, over one lakh people die of water borne diseases annually. It is
reported that groundwater in one-third of Indias 600 districts is not fit for drinking as the
concentration of fluoride, iron, salinity and arsenic exceeds the tolerance levels. With
increasing number of people becoming conscious of the risks of drinking contaminated
water, the demand for water purifiers is rising rapidly. In the past few years, Indian water
purifier industry has witnessed an exponential growth of more than 22% CAGR.
The Indian water purifier industry sales grew dramatically during FY10 as compared to
previous fiscals due to improving demand and expanding production capacity. In 2011, the
organized water purifier market stood at INR1,500 Crore. Given the increasing awareness,
and largely untapped market potential, the sector is expected to grow at a CAGR of more
than 20 percent till 2016. The drivers of growth include scarcity of clean drinking water,
low penetration of water purifiers, increasing urbanization, and waterborne diseases, while
challenges faced are the lack of standards and low awareness levels
The Indian market has tremendous potential which is more evident from the fact that global
majors such as Philips and Hindustan Lever have stepped in and are looking to increase
their share of the market. The three principal players today are Eureka Forbes, KENT RO
and HUL. In the years to come, we are likely to see others entering the fray. There is also a
huge unorganized market in India, which is misleading the consumers.
Market Dynamics
The Indian water purifier market is on a high growth trajectory. It is estimated at Rs.2000
crore with total sales of about 5 million units. The top 5 brands, is together estimated at
Rs.1142.44 crore. The five brands are Eureka Forbes, Hindustan Unilever Limited, Kent,
Zero B, and Whirlpool.
Eureka Forbes has the highest turnover in the segment, estimated at over Rs.510 crore. It is
present in all the three categories RO + UV based, and storage purifiers through its
brand AquaSure.
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Hindustan Unilever Limited dominates the offline water purifiers market and has some
presence in the inline category with Marvella OGT and Autofill purifiers. Its turnover from
water purifiers division is estimated at Rs.300 crore.
Kent with its focus primarily on the premium RO-based purifiers had a sales turnover of
Rs.240 crore in 2010-11. Ion Exchange had sales of Rs.54.57 crore in 2010-11 from its
direct sales and retail counters for Zero B water purifiers for domestic use.
Whirlpool, Tata Chemicals, Usha Brita and Bajaj are the other aggressive brands. Many
other brands are making a foray into this segment. Some regional ones have a stronghold in
their respective areas. These include LG, IFB, Godrej, and Kelvin catering to the Delhi
market; and Gilma, Moniba, Morf, and Nasaka from the Okaya Power group, and many
more in the southern parts of India.
The Indian market has tremendous potential, which is evident from the fact that global
majors in the water purifiers segment have stepped in and are looking to increase their share
of the market. Many regional brands are successful in their respective geographical areas. In
the years to come, many others may enter the fray.
Indian Vacuum Cleaner Industry
Vacuum cleaner sales are directly linked to affordability, changing consumer lifestyles and
brand push by companies. With more working couples, dependence on domestic help rises,
but as costs of living in cities increase, home helps also become more expensive and
difficult to retain. Conversely, demand for tools that reduce dependence and yet help in
maintenance has grown. Vacuum cleaners are a healthy options in such a scenario. While
companies like Eureka Forbes actually used to target home helps to use vacuum cleaners,
during the review period, the company started talking directly to housewives too. Vacuum
cleaner volume sales are projected to grow at a CAGR of 6% over the forecast period.
According to industry estimates, the domestic vacuum cleaner market is around Rs 250
crore and Eureka Forbes claims to enjoy a market share of almost 90 per cent of this. Eureka
Forbes continued to dominate, selling a total of 16 brands in the country including a robotic
vacuum cleaner. The company has a history of Indianising vacuum cleaners, by way of
design, capacity and price. Other popular vacuum cleaners in India include LG, Panasonic,
Inalsa etc.
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16
5. COMPANY PROFILE
-
17
Eureka Forbes, is a joint venture between the Shapoorji Pallonji Groups Forbes &
Company Ltd. based in Mumbai and Electrolux of Sweden which came into existence in the
year 1982. An over Rs. 11,000 million multi-product, multi-channel organisation, it includes
Asia's largest direct sales force, dealer, institutional and rural channels; service and
franchised operations network s plus a water projects division.
The company pioneered and has led the water and air purifier, cleaning and security systems
categories through well-known Superbrand, Aquaguard and other brands likeEuroclean and
AquaSure. Eureka Forbes products can be found in over 39 countries across the globe Its
numerous accolades include being a case study at the Harvard Business School, one of
India's Best Employers (three years in a row) and several mentions in the MBA Marketing
Text Book by Philip Kotler.
Company History
Eureka Forbes launched its first range of vacuum cleaners, Euroclean in 1982 and
established its first sales office in the same year. The companys subsidiary for
manufacturing water purifiers, Aquamall Water Solutions was also launched in the same
year. The company began operations from a single office in Delhi, with just 10 field
representatives. Two years later it launched the Aquaguard range of water purifiers.
Subsequently, Eureka Forbes launched its dealer division in 1985, its industrial sales
division in 1986 and its exports division in 1989. In 1994, the company entered the air
purifier segment. In 1995, the company launched the Tornado range of vacuum cleaners
and the Aquaflo range of water purifiers exclusively for marketing through the dealer
route. In 1997, Eureka Forbes diversified into electronic security systems under the brand
name Eurovigil. The company established manufacturing facilities at Bhimtal, Hyderabad
and Bangalore. It also had a Research and Development center at Bangalore.
Mission Statement
To build sustainable relationships with customers, as their Friend for Life by satisfying
their evolving health, hygiene, safety and lifestyle needs.
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18
Vision Statement
A happy, healthy, safe and pollution-free environment built on trust and lasting relationships
with Customers.
Our people;
Whose entrepreneurial spirit and ambition is fuelled by the culture of pride, learning,
earning and fun.
Our products and services;
That reflect innovation, become quality benchmarks, and provide real value-for-money.
Our policies and practices;
That are fair, transparent and constantly improved to maximize stakeholder satisfaction and
achieve market leadership.
Our Values;
CUSTOMER is the centre of our business.
Integrity and highest ethical standards.
Mutual Respect and trust in our working relationships.
Communication that is open, consistent and two-way.
Diversity of people, cultures and ideas.
Innovation and encouragement to challenge the status quo.
Continuous Improvement development and learning in all we do.
Teamwork and meeting our commitments to one another.
Performance with recognition for results.
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19
Organizational Structure
-
20
Retail Business
The company decision to enter the retail business was primarily a result of launching its
Tornado vacuum cleaners and Aquaflo water purifiers in 1995. Over the years the retail
business assumed greater significance and by 1999. About 5% of the company sales came
from the 2500 strong dealer network. Eureka Forbes saw a lot of potential in its retail
business and decided to work towards expanding its dealer network further and doubling the
revenue from it. The move was in accordance to the companys plan to add more visibility
to its products.
Product Portfolio
Only the products sold through retail divisions are mentioned as the study encompasses only
these products.
I. AquaSure Water purification Systems
1. AquaSure RO+UV
2. AquaSure Spring Fresh DX RO
3. AquaSure Nano RO
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21
4. AquaSure Crystal UV
5. AquaSure Smart UV
6. AquaSure Aquaflo DX
7. AquaSure Amrit
8. AquaSure Galaxy
9. AquaSure Xtra Plus
-
22
II. Forbes Range of Vacuum Cleaners
1. Forbes Trendy Wet & Dry
2. Forbes Trendy Xeon
3. Forbes Trendy Steel
4. Forbes Trendy Nano
5. Forbes Easy Clean
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23
Promotional Activities undertaken by Eureka Forbes Limited, Cochin
There are various promotion activities undertaken by Eureka Forbes Limited, Cochin which
heads the marketing activities in the state of Kerala. These are aimed at spreading the
message of safe drinking water and hygiene and generate awareness about the company and
its products among the masses. Such activities are also intended to improve sales and also
create positive brand image among the general public. Some of the major promotional
activities undertaken by EFL in the state of Kerala are:
a) Water Testing Campaigns
Free Water Testing campaigns are conducted by EFL in various districts across Kerala.
It is done in association with major dealers who sell Eureka Forbes products such as
Nandilath G Mart, Kannankandy Sales Corporation, Nishkan Electronics etc. These
campaigns are usually conducted for two days and are advertised in popular dailies one
day in advance. Water samples are collected from people and results are provided after
detailed laboratory testing. Information is given about the problems and health risks
associated with the level of contamination and also recommendations are given as to
which water purifier is to used for solving the problem.
The campaign helps people to know the safety of the water they use for consumption
and also the health risks associated with it. It also provides the company an opportunity
to introduce their products to potential customers.
b) Exhibitions
Company stalls are put at various popular consumer exhibitions such as Vanitha Utsav,
Manorama etc for a period of 2 weeks. A recent such activity was done at Vanitha
Uthsav South Indias biggest consumer exhibition, conducted by Malayala Manorama.
It was participated through one of the companys major dealer, Bismi Home Appliances
& Distributor Spectrum Sales & Services, Ernakulam. An estimated figure of around 8
Lac customers visited the stall.
c) Live Demonstration Campaigns
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24
Through such campaigns, live demonstrations of the products are carried out to explain
to the public about its usage and advantages.
d) Road Shows
Road Shows are organized across the state as part of providing publicity to the
company and its products. Road Shows are highly attention grabbing and provide
opportunity to inform the public about new launches or offers.
The concept of Road Shows is based on the Eureka Forbes Safe Water Challenge.
The activity endorses the ability of AquaSure Water Purifiers in providing not just pure
but safe drinking water though its technology labeled as Kitanu magnet. Public is also
made aware about the inability of chlorine treatment and other chemical free storage
purifiers to remove both viruses and bacteria.
e) Advertisement through print media
Advertisements are posted in various dailies operating in the state. It provides high
coverage for the advertisements since newspaper readership is high in Kerala. Various
product launches, festival offers etc are usually informed to the consumers through this
medium.
f) Advertisements through banners and leaflets:
During festival seasons, products are aggressively promoted through banners erected at
various locations and notices given at certain locations. These are usually done in front
of dealer shops, modern retail outlets, co-operative societies etc to grap maximum
attentions. This activity is done mainly during festivals like Onam and gives
information regarding various oOnam offers.
g) Social Media
Eureka Forbes also use social networking and micro-blogging websites like Facebook and
Twitter to improve popularity and at the same time engage customers and other members to
provide valuable feedback and opinions. Social Networking offers the at most degree of
collaboration between the company and its customers which is not easy with other forms of
advertising.
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25
6. RESEARCH METHODOLOGY
-
26
6.1 OBJECTIVE OF THE STUDY
Primary Objective
To study the impact of various promotional activities undertaken by Eureka Forbes
Limited, Retail Division, Cochin on customer buying behavior.
Secondary Objectives
To study the extent of awareness generated in the public about the company and its
products through the various promotional activities.
To understand the relationship between the awareness generated and the demographic
profile of the customer.
To study the impact of these promotional activities on product sales.
To study the acceptance of the products among potential consumers.
To understand the most effective promotional activity in achieving the desired goals.
6.2 SCOPE OF THE STUDY:
The study is done to understand the impact of the promotional activities undertaken by
Eureka Forbes, Retail Division, Cochin in generating awareness and acceptance among
the target consumers as well as its role in generating sales. The study encompasses the
various promotional activities carried out by the company and seeks to find out the most
effective one among them.
The study is coordinated from Eureka Forbes Retail Division Office at Cochin and is
restricted to the products sold only through Retail outlets across Kerala. The products
under study are AquaSure Water Purifiers and Forbes Vacuum Cleaners.
The study will cover existing consumers and potential consumers of Eureka Forbes in the
state of Kerala. The duration of the study is two months.
6.3 RESEARCH DESIGN
A research design is the determination and statement of the general research approach or
strategy adopted for the particular project. It is the arrangement of condition and analysis of
data in a manner to combine relevance to the research purpose with economy in procedure.
-
27
It is the heart of the planning. If the design adheres to the research objectives, it will ensure
that the objectives of the research are met.
Descriptive research is used for the study. Descriptive research includes surveys and fact
finding enquiries of different kinds. This is a kind of research structure which is concerned
with describing the characteristics of the problem. In this way the main purpose of such a
research design is to present a descriptive picture about the marketing problem on the basis
of actual facts. For this it is important to obtain the complete and actual information about
the subjects.
6.4 POPULATION CHARACTERISTICS
The population under study consists of both the customers of Eureka Forbes as well as non-
customers across the state of Kerala.
6.5 SAMPLE DESIGN AND SAMPLE SIZE
A sample design is a definite plan for obtaining a sample from a given population. It refers
to the technique or procedure the researcher would adopt in selecting items for the sample.
Judgmental sampling has been used for this study.
The sample size of this study has been kept to 100.
6.6 SOURCES OF DATA
Both primary and secondary data were collected for the purpose of the study.
Primary Data
Primary data was collected by using direct interviews and questionnaires.
Secondary Data
Secondary data was collected books, company files, magazines, newspaper articles and the
company website.
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28
6.7 TOOLS AND METHODS OF STATISTICAL ANALYSIS
The analysis of collected data is done through various statistical tools. The following tools
have been used in this research for statistical analysis and interpretation:
1. Percentage Analysis
Percentage refers to a special kind of ratio. It is used to make comparison between two or
more series of data. They can be used to compare the relative items, the distribution of two
or more series of data since the percentage reduce everything as common base and allow the
meaningful comparison to be made.
No. of respondents
Percentage (%) = -------------------------- x 100
Total respondents
2. Analysis using Weighted Average Method
An average in which each quantity to be averaged is assigned a weight. These weightings
determine the relative importance of each quantity on the average. Weightings are the
equivalent of having that many like items with the same value involved in the average. he
average of a quantity is calculated after summing up all the values of that quantity and then
dividing it by the total number. A weighted average is calculated by taking into
consideration, additional conditions associated with each of the values for the data.
Weighted Average = (x1 w1 + x2 w2. .+ xn wn) / (w1 + w2. . + wn) = i = 1 to n (xi
wi) / i = 1 to n wi
3. Paired T-test Method
The paired t test provides a hypothesis test of the difference between population means for a
pair of random samples whose differences are approximately normally distributed.
The test statistic is calculated as:
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29
where d bar is the mean difference, s is the sample variance, n is the sample size and t is a
Student t quantile with n-1 degrees of freedom.
4. Chi-Square Test
It is a non-parametric test which can be used to determine if categorical data shows
dependency or the two classifications are independent. Chi-square test can be used to: (1)
test the goodness of fit, (2) test the significance of association of between two attributes, and
(3) test the homogeneity or the significance of the population variance.
5. SPSS
SPSS is a computer program used for survey authoring and deployment, data mining ,text
analytics, statistical analysis, and collaboration. SPSS (originally, Statistical Package for the
Social Sciences) was released in its first version in 1968. It is used by market researchers,
health researchers, survey companies, government, education researchers, marketing
organizations and others. It is used by market researchers, health researchers, survey
companies, government, education researchers, marketing organizations and others.
6. Tables, Graphs and Charts
Simple statistical tools like tables, graphs and charts are also used in this research for
tabulation and statistical representation of data.
6.8 HYPOTHESIS FOR TESTING
Hypothesis 1:
H0: The promotional activities have no significant impact on the sales of AquaSure Water
Purifiers.
H1: The promotional activities have significant impact on the sales of AquaSure Water
Purifiers.
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30
Hypothesis 2:
H0: The promotional activities have no significant impact on the sales of Forbes Vacuum
Cleaners.
H1: The promotional activities have significant impact on the sales of Forbes Vacuum
Cleaners.
Hypothesis 3:
H0: There is no significant relationship between the brand awareness and the residential
location of the respondent.
H1: There exists a significant relationship between the brand awareness level and the
residential location of the respondent.
Hypothesis 4:
H0: There is no significant relationship between the awareness level and the age group of the
respondent.
H1: There exists a significant relationship between the awareness level and the age group of
the respondent.
6.9 LIMITATIONS OF THE STUDY
The customers to be surveyed are highly scattered.
There are possibilities of biased responses.
The time allotted to do carry out the project is also limited.
The sample size had to be restricted to 100 due to time constraints.
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31
7. DATA ANALYSIS AND
INTERPRETATION
-
32
7.1 Customer Profile
7.1.1 Location
Table 7.1.1.1 Location
Rural Semi-Urban Urban Total
25 19 56 100
Fig 7.1.1.1 Location
Interpretation:
59% of the respondents surveyed are from urban areas since the problem of water pollution
and cleanliness is more prominent in urban living conditions. The other respondents include
25 % rural and 19% semi urban.
Rural25%
Semi-Urban19%
Urban56%
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33
7.1.2 Age Group
Table 7.1.2.1 Age Group
Less than 25 26 - 35 36 - 50 50 and above
19 19 30 32
Fig 7.1.2.1 Age Group
Interpretation:
Majority of the respondents belong to the age group of 50 and above closely followed by the
36 50 age group. As water purifiers and vacuum cleaners are household consumer durable
items most of the purchase decisions are made by senior members of the family, especially
homemakers.
0
5
10
15
20
25
30
35
Less than 25 26 - 35 36 - 50 50 and above
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34
7.1.3 Gender
Table 7.1.3.1 Gender
Male Female
66 34
Fig 7.1.3.1 Gender
Interpretation:
66 % of the respondents are males and 34 % are females. In most Kerala households, though
females take an active interest in purchase decisions regarding consumer durables, the final
decision is usually made by the male head of the family.
Male
66%
Female
34%
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35
7.1.4 Income
Table 7.1.4.1 Income
Less than
1 1 - 2.5 2.5 - 4 4 - 6.5 above 6.5
35 15 50 0 0
Fig 7.1.4.1 Income
Interpretation:
Majority of the respondents belonged to the income category of 2.5 4 lakh category which
represents the upper middle class section in Kerala. Increased awareness about water born
disease and hygiene living have made Eureka Forbes products popular even among the
lower income group.
0
5
10
15
20
25
30
35
40
45
50
Less than 1 1 - 2.5 2.5 - 4 4 - 6.5 above 6.5
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36
7.2 Mode of using drinking water
Table 7.2.1 Mode of using drinking water
Directly Boiled Filtered
UV
Purified Total
16 35 33 16 100
Fig 7.2.1 Mode of using drinking water
Interpretation:
35 % of the respondents use drinking water by boiling it, while a close 33 % use it filtered.
16% use it use UV purifiers while there is another 16 % who directly consume the drinking
water.
Directly
16%
Boiled
35%
Filtered
33%
UV Purified
16%
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37
7.3 Brand Awareness - Unaided Recall for Water Purifiers
Fig 7.3.1 Brand Awareness - Unaided Recall for Water Purifiers
Interpretation:
The question is intended to test the respondents ability to recall the brand names of
different water purifiers since recall forms an important parameter to measure brand
awareness. The top three responses were taken into consideration.
From the responses, it was clear that 84% respondents were able to recall The Eureka
Forbes brand name followed by Pureit (31%) and Kent (27%).
27%
31%
84%
Kent
Pure it
Eureka Forbes
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38
7.4 Brand Awareness - Unaided Recall for Vacuum Cleaners
Fig 7.4.1 Brand Awareness - Unaided Recall for Vacuum Cleaners
Interpretation:
The question is intended to test the respondents ability to recall the brand names of
different vacuum cleaners since recall forms an important parameter to measure brand
awareness. The top three responses were taken into consideration.
From the responses, it was clear that 68% respondents were able to recall The Eureka
Forbes brand name followed by Phiilps (10%) and Panasonic (8%).
8%
10%
68%
Panasonic
Philips
Eureka Forbes
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39
7.5 Awareness about the product Aided Recall
Table 7.5.1 Awareness Aided Recall
Yes No
77% 23%
Fig 7.5.1 Awareness Aided Recall
Interpretation:
Out of the 100 respondents, 77% said that they had they had heard of any one of the product
names or both of them and 23% said that they havent.
Yes
77%
No
23%
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40
7.6 Source of Information
Table 7.6.1 Source of Information
Print
Advertis
ements
Friends/
Relative
s
Exhibiti
ons/Tra
de
Shows
In-
Store
Kiosks
Company
Website/
Social
Media
Field
Demons
trations
Total
44 17 2 3 2 10 77
Fig 7.6.1 Source of Information
Interpretation:
57% of the respondents said that they came know about the product through print
advertisements. 22% said their friends/relatives were the source of information. 15% said
that they had seen field demonstrations, 4% in store kiosks and 2% through the company
website/social media.
57%
22%
2%
4%
2%13%
Print Advertisements
Friends/Relatives
Exhibitions/Trade Shows
In-Store Kiosks
Company Website/Social Media
Field Demonstrations
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41
7.7 Frequency of promotional activities
7.7.1 Frequency of Promotional Activities
Never Once a
Week
Once a
Month
Once
in 3
Month
s
Once
in 6
Month
s
Once a Year
7 0 7 9 39 15
Fig 7.7.1 Frequency of Promotional Activities
Interpretation:
This question was intended to test the frequency at which the respondents came across any
promotional activities of the company. 39 of the 77 respondents who said they were aware
of the products said that they had come across such activities once in 3 months. 15 of them
said once a year, 9 said once in 3 months and 7 said once in a month. 7 of tem said tey had
never came across such activities.
0 5 10 15 20 25 30 35 40 45
Never
Once a Week
Once aMonth
Once in 3 Months
Once in 6 Months
Once a Year
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42
7.8 Brand Association
Table 7.8.1 Brand Association
Rank Health Cleanliness Affordability
1 45 55 0
2 33 37 30
3 22 8 70
Table 7.8.2 Brand Association - Ranking
Health &
Safety Cleanliness Affordability
Weighted score 223 247 130
Rank 2 1 3
Interpretation:
Respondents were asked to rank the factors that come to their mind when they hear about
Eureka Forbes. With a weighted score of 247, Cleanliness was ranked 1 followed by Health
& Safety (223) and Affordability (130).
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43
7.9 Percentage of Customers and Non-Customers Surveyed
Table 7.9.1 % of Customers surveyed
Yes No
50% 50%
Fig 7.9.1 % of Customers surveyed
Interpretation:
The population was taken in such a manner that 50% of the respondents were customers of
Eureka Forbes and 50 % were non-customers.
Yes50%
No50%
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44
Information collected from non-customers only (7.10 7.12).
7.10 Promotional Activities Competitors
Table 7.10.1 Promotional Activities Competitors
Advertisements Road Shows Exhibitions Field
Demonstrations
34 2 4 10
Fig 7.10.1 Promotional Activities Competitors
Interpretation: This question was asked to determine if the respondents had come across
any of the promotional activities of any water purifier or vacuum cleaner brands companies.
68% of respondents replied that they had come across advertisements of various brands.
Other such promotions which they had come across are Field Demonstrations (20%),
Exhibitions (8%) Road Shows (4%).
Advertisements68%
Road Shows4%
Exhibitions8%
Field Demonstrations
20%
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45
7.11 Brand Preference Water Purifiers
Table7.11.1 Brand Preference Water Purifiers
Rank Eureka
Forbes Kent HUL Tata Godrej Bajaj
1 21 0 29 0 0 0
2 29 11 10 0 0 0
3 0 39 11 0 0 0
4 0 0 0 30 20 0
5 0 0 0 20 20 10
6 0 0 0 0 10 40
Table 7.11.2 Brand Preference Water Purifiers (Ranking)
Eureka
Forbes Kent HUL Tata Godrej Bajaj
Weighted
score 271 211 268 130 110 60
Rank 1 3 2 4 5 6
Interpretation:
This question was intended to know the brand preference of the respondents in case of water
purifiers. Respondents were asked to rank their preferences. With a weighted score of 271
Eureka Forbes was ranked first. It was followed by HUL (268), Kent (211), Tata (130),
Godrej (110) and Bajaj (60).
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46
7.12 Brand Preference Vacuum Cleaners
Table 7.12.1 Brand Preference Vacuum Cleaners
Rank Eureka LG Inalsa Panasonic
1 25 12 0 13
2 25 13 12 0
3 0 25 12 13
4 0 0 26 24
Table 7.12.2 Brand Preference Vacuum Cleaners (Ranking)
Eureka LG Inalsa Panasonic
Weighted score 175 137 86 102
Rank 1 2 4 3
Interpretation:
This question was intended to know the brand preference of the respondents in case of
vacuum cleaners. Respondents were asked to rank their preferences. With a weighted score
of 175 Eureka Forbes was ranked first. It was followed by LG (137), Panasonic (102) and
Inalsa (86).
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47
Information collected from Eureka Forbes customers only (4.13 4.20).
7.13 Place of Purchase
Table 7.13.1 Purchase place
Modern Retail Outlet Dealers Online
10 40 0
Fig 7.13.1 Purchase Place
Interpretation:
40 of the 50 customers surveyed had bought the product from Dealer Shops whereas 10 of
them had bought it from Modern Retail Outlets. None of the respondents had explored the
option of online purchase.
0
5
10
15
20
25
30
35
40
45
Modern Retail Outlet Dealers Online
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48
4.14 Prior knowledge of Products
Table 7.14.1 Prior knowledge of Products
Fig 7.13.1 Prior knowledge of Products
Interpretation:
This question was asked to determine if the customers who bought the Eureka Forbes
product had prior knowledge of the product when they came into the shop. 84% of the
surveyed customers said they had prior knowledge of the product and 16% said they hadnt.
84%
16%
Yes
No
Yes No
42 8
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49
7.15 Influencing Factor AquaSure Water Purifier
Table 7.15.1 Influencing Factor AquaSure Water Purifier
Rank Quality Price Service
Brand
Image
Salesman/De
aler Influence
1 36 0 0 13 0
2 7 0 6 22 10
3 6 22 7 6 10
4 0 13 14 8 16
5 0 14 22 0 13
Table 7.15.2 Influencing Factor AquaSure Water Purifier (Ranking)
Quality Price Service
Brand
Image
Salesman/
Dealer
Influence
Weighted
score 226 106 95 187 115
Rank 1 4 5 2 3
Interpretation:
Respondents were asked to rank the major influencing factors that led them to purchase
AquaSure Water Purifier in order to understand their priorities. With a weighted score of
226, it was found that Quality was the most influencing factors that led them to purchase the
product followed by Brand Image (187), Salesman/Dealer Influence (115), Price (106) and
Service (95).
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50
7.16 Influencing Factor Forbes Vacuum Cleaner
Table 7.16.1 Influencing Factor Forbes Vacuum Cleaner
Rank Quality
Ease of
Use Price
Brand
Image
Salesman
/ Dealer
Influence
1 9 7 0 0 0
2 7 6 0 0 3
3 0 0 1 15 0
4 0 3 7 0 6
5 0 0 8 1 7
Table 7.16.2 Influencing Factor Forbes Vacuum Cleaner (Ranking)
Quality
Ease of
Use Price
Brand
Image
Salesman/
Dealer
Influence
Weighted
score 73 65 25 46 31
Rank 1 2 5 3 4
Interpretation:
Respondents were asked to rank the major influencing factors that led them to purchase
Forbes Vacuum Cleaner in order to understand their priorities. With a weighted score of 73,
it was found that Quality was the most influencing factors that led them to purchase the
product followed by Ease of Use (65), Brand Image (46), Salesman/Dealer Influence (31)
and Price (25).
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51
7.17 Programmes / Events
Table 7.17.1 Programmes/Events
Water Testing
Programmes Exhibitions
Road
Shows Others None
17 7 2 0 24
Fig 7.17.1 Programmes/Events
Interpretation:
Many programmes and events are organized by Eureka Forbes in an effort to promote
themselves. This question intends to find out if the respondents have been part of or come
across any such events or programmes. 48% of the respondents mentioned that they havent
come across any such programmes. 34% mentioned about water-testing programmes, 14%
about exhibitions and another 4% about road-shows.
34%
14%4%
0%
48%
Water Testing Programmes Exhibitions Road Shows Others None
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52
7.18 Influence of programmes/events on purchase decision.
Table 7.18.1 Influence of programmes/events on purchase decision.
Yes No
21 6
Fig 7.18.1 Influence of programmes/events on purchase decision
Interpretation:
This question inquires whether the programmes or events mentioned in the previous
questions had any impact in respondents purchase decision. 78% said it had and 22% said it
didnt affect their purchase decision.
78%
22%
Yes No
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53
7.19 Customer Retention
Table 7.19.1 Customer Retention
Yes No
42 8
Fig 7.19.1 Customer Retention
Interpretation:
Customer retention is an important objective of promotion and this question intents to
examine that. 84% of the respondents said they would like to be a repeat customer if
provided a second chance and 16% said they would not.
Yes
84%
No
16%
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54
7.20 Product Acceptance
Table 7.20.1 Product Acceptance
Yes No
43 7
Fig 7.20.1 Product Acceptance
Interpretation:
This question intents to test whether the customers have accepted the Eureka Forbes
products and to find out whether they value them. 86% of the respondents said that they
would suggest the products to their friends or relatives and 14% said they wouldnt.
Yes
86%
No
14%
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55
HYPOTHESIS TESTING
7.21 Hypothesis 1:
H0: The promotional activities have no significant impact on the sales of AquaSure water
Purifiers.
H1: The promotional activities have a significant impact on the sales of AquaSure Water
Purifiers.
Method used: Paired T-test
Table 7.21.1 Sales Data in units sold (Water Purifier)
Dealer Name
Date of Activity
Sales
Water Purifier
June July Augus
t
Kannankandy Sales
Corporation, Calicut
22nd & 23rd June,
2012
5 25 44
Nikshan Electronics,
Kannur
3rd & 4th July,
2012
20 21 46
Nandilath G Mart, Thrissur 9th & 10th July,
2012
85 91 121
Before After
5 34.5
20 33.5
85 106
Appying T-test: T-test value = 0.04387
Interpretation:
Analyzing the sales of water purifiers before and after the promotional activity was carried
out using t-test, the output value obtained is 0.04378. Since the obtained value is less than
0.05, alternate hypothesis, H1 is accepted. Hence it can be concluded that the promotional
activities has a significant impact on sales of AquaSure water Purifiers.
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7.22 Hypothesis 2:
H0: The promotional activities have no significant impact on the sales of Forbes Vacuum
Cleaners.
H1: The promotional activities have a significant impact on the sales of Forbes Vacuum
Cleaners.
Method used: Paired T-test
Table 7.22.1 Sales Data in units sold (Vacuum Cleaner)
Dealer Name
Date of Activity
Sales
Vacuum Cleaner
June July Augus
t
Kannankandy Sales
Corporation, Calicut
22nd & 23rd June,
2012
4 7 25
Nikshan Electronics,
Kannur
3rd & 4th July,
2012
23 13 42
Nandilath G Mart, Thrissur 9th & 10th July,
2012
82 63 119
Before After
4 16
23 27.5
82 91
Appying T-test: T-test value = 0.0599
Interpretation:
Analyzing the sales of vacuum cleaners before and after the promotional activity was carried
out using t-test, the output value obtained is 0.0599. Since the obtained value is greater than
0.05, null hypothesis, H0 is accepted. Hence it can be concluded that the promotional
activities has no significant impact on sales of Forbes Vacuum Cleaners.
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7.23 Hypothesis 3:
H0: There is no significant relationship between the brand awareness and the residential
location of the respondent.
H1: There exists a significant relationship between the brand awareness and the residential
location of the respondent.
Method used: Chi Square Test
Location and awareness
Cases
Valid Missing Total
N Percent N Percent N Percent
Location &
Awareness 100 100.0 0 0.0% 100 100.0
Location & Awareness Cross tabulation
Count
Awareness Total
Yes No
Location
Rural 19 6 25
Semi-urban 17 2 19
Urban 41 15 56
Total 77 23 100
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Chi-Square Tests
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 2.137a 2 .344
Likelihood Ratio 2.429 2 .297
Linear-by-Linear
Association .274 1 .601
N of Valid Cases 100
a.1 cells (16.7%) have expected count less than 5. The minimum expected count is 4.37.
Interpretation:
Since value of Asymptotic significance is greater than 0.05, H1 is rejected and H0 is
accepted. This means that there is no significant relationship between the brand awareness
and the residential location of the respondent.
4.24 Hypothesis 4:
H0: There is no significant relationship between the brand awareness and the age group of
the respondent.
H1: There exists a significant relationship between the brand awareness and the age group of
the respondent.
Method used: Chi Square Test
Age Group and Awareness
Cases
Valid Missing Total
N Percent N Percent N Percent
Age &
Awareness 100 100.0% 0 0.0% 100 100.0%
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Age & Awareness Cross tabulation
Count
Awareness Total
Yes No
Age
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8. FINDINGS, SUGGESTIONS &
CONCLUSION
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8.1 FINDINGS
The study conducted at Eureka Forbes Ltd, Dealer Division, Cochin on the effectiveness of
promotional activities us reflects the following findings:
1. There is a significant number of households who use boiled water for drinking.
This group considers boiling as a substitute for water purifiers. There is also a
small proportion of households who use their drinking water directly. Both these
groups represent untapped market for water purifier companies to explore.
2. The Brand name Eureka Forbes is highly popular among the public. A vast
majority of the respondents were able to recall the brand name and when it comes
to water purifiers and vacuum cleaners without any aid.
3. AquaSure water purifiers are more popular among people than Forbes Vacuum
cleaners though both of them come from the same brand.
4. Traditional print media continuous to be the most effective medium for
communication followed by word of mouth. Emerging media like social
networking websites wasnt found to be very effective in this regard.
5. The frequency by which the company could reach the customers was found to be
low.
6. When it comes to brand association, cleanliness, health and safety were the major
aspects which people could relate to Eureka Forbes.
7. When it comes to competitors also, advertisement again was found to be the most
popular form of promotion.
8. Eureka Forbes was found to be the most preferred brand when it comes to both
water purifiers and vacuum cleaners. HUL, Kent (for water purifiers) and LG,
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Panasonic (for vacuum cleaners) were also not far behind when it comes to brand
preference.
9. The option of online buying is not all preferred by most of the customers.
10. A good majority of consumers had prior knowledge of the products before coming
to the shops to make the purchase. This indicates that customers actively engage in
collecting information about the products and that the company was highly
successful in delivering the required information.
11. Quality of the products is the paramount factor that led the customers to purchase
Eureka Forbes products. Service was found to be the least influencing factor.
12. Water-Testing programmes were found to be an important event organized by the
company which could attract good attention from the public followed by
exhibitions. A considerable proportion of the population hasnt been part of any
such programmes or events.
13. There is customer retention and product acceptance in case of Eureka Forbes
customers are very high.
14. The promotional activities had a significant impact in generating sales of
AquaSure water purifiers.
15. There hasnt been a significant impact of promotional activities in generating sales
of Forbes Vacuum Cleaners.
16. There exists a significant relationship between the brand awareness and age group
of the individual whereas no such significant relationship was found with the
residential location of the individual.
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8.2 SUGGESTIONS
1. The company should concentrate its efforts to the section of population who use
drinking water directly and by boiling and educate them about the advantages of
using a water purifier.
2. The company should increase its promotional efforts in case of vacuum cleaners
since the awareness level about vacuum cleaners was found to be low when
compared to water purifiers. For some, the name Eureka Forbes is synonymous to
water purifiers. Hence the promotion efforts should be channeled in such a way
that the vacuum cleaner brand is not overshadowed by the water purifier brand.
3. The marketer can aggressively use social media as a means of interacting with the
customers.
4. The concept of collaborative marketing can be explored using social media where
customers along with marketing managers co-create ideas, news and technology at
the same time consuming them. It is both an economical and efficient way of
marketing.
5. The frequency of advertisements or other cost-effective promotional activities
needs to be improved.
6. Affordability can be promoted more as a customer friendly aspect of Eureka
Forbes products since it was ranked lowest by the respondents.
7. The marketer can popularize the idea of online purchase and the benefits
associated with it.
8. Better responses to customers enquiries after the purchase has been made can
change the perception about poor after sales service.
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9. Road Shows as a way of publicity can be explored more by the marketer since it is
highly effective in grabbing public attention.
10. The company should try to identify areas which are pollution hotspots and make an
attempt to educate the residents there at the same time promoting their products.
8.3 CONCLUSION
This study was undertaken in an attempt to understand the effectiveness of promotional
activities undertaken by Eureka Forbes Limited, Retail Division, Cochin. The effectiveness
of any promotional activity is a measure of the awareness generated among the public about
the company and its products, the information it has been able to communicate, the sales
that it has been able to generate, product acceptance, establishment a positive brand image,
the number of customers retained and many more. Hence judging by the responses obtained
from the customers as well as non-customers of Eureka Forbes Ltd, it can be concluded that
the promotional activities had been highly effective in attaining its expected goals. This can
be inferred from the high brand awareness, high acceptance and high retention of its
products.
Eureka Forbes has been highly successful in promoting itself as a company which is
committed in providing happy, healthy, safe and pollution-free living conditions to all at the
same time caring for the environment and the society around it. The study was able to
reflect on high level of brand preference for Eureka Forbes products among the public. It
could also recognize the importance of promotions like advertisements, water-testing
programmes, exhibitions etc carried out by the company, its contribution to generating the
desired awareness and at the same time generating sales. Advertising which is an integral
form of promotion turns out to be the most effective media for communication. Quality is
the paramount factor that entices the customer to choose Eureka Forbes products. A
consistent customer oriented approach towards promotion strategy and adapting to the
changing methods of communication can help Eureka Forbes Ltd maintain and capitalize on
its existing competitive position.
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9. BIBLIOGRAPHY
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66
1. Books
Marketing Management - Kotler Philip, Keller Kevin Lane, Koshy Abraham & Jha
Mithileswar; Pearson Publications; 13th Edition, 2009
Research Methodology - Kothri C R, Vishwa Prakashan publications, 2002
Statistical Methods - Kothari C R, S P Gupta, Sultan Chand & Sons, 2002
2. Websites
http://www.eurekaforbes.com/
http://www.sp-group.co.in/index.php
http://www.ces.iisc.ernet.in/energy/water/paper/kerala_tap_water_quality/index.htm
http://www.adi-media.com/PDF/TVJ/annual_issue/011-Water-Purifiers.pdf
http://articles.economictimes.indiatimes.com/2010-07-17/news/28387647_1_eureka-
forbes-water-purification-new-product
http://timesofindia.indiatimes.com/business/india-business/Competition-hots-up-in-
water-purifier-business/articleshow/14659453.cms
3. Journals
Eureka Forbes Limited Annual Reports 2010 2011
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10. APPENDIX
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10.1 PROMOTIONAL ACTIVITIES - CUSTOMER SURVEY
(Use a tick mark to select the options)
1. Customer Details
i. Name .
ii. Location a) Rural b) Semi-Urban c) Urban
iii. Age group: a) Less than 25 b) 26 35 c) 36-50 d) 50 and above
iv. Gender : a) Male b) Female
v. Income (in lakh per annum): a) less than 1 b)1 2.5 c) 2.5 4 d) 4 6.5
e) 6.5 and above
2. How do you use your drinking water?
a) Directly b) Boiled c) Filtered d) UV Purified
3. Which all brands come to your mind when you hear of water purifiers?
a) ..
b) ..
c) ..
d) ..
e) ..
4. Which all brands come to your mind when you hear of vacuum cleaners?
a) ..
b) ..
c) ..
d) ..
e) ..
5. Have you heard of any of the following products of Eureka Forbes - AquaSure
Water Purifier/ Forbes Vacuum Cleaner?
a) Yes b) No
6. If yes, how did you come to know about this product?
a) Print Advertisements b) Friends/relatives c)Exhibitions/Trade Shows
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d) In-store Kiosks e) Company Website/Social media f) Field Demonstrations
g) Others (Specify).
7. How often have you come across similar promotional activities of the company?
a) Never b)Once a week c) Once a month d) Once in 3 months
e) Once in 6 months f) Once a year
8. Which of these aspects comes to your mind when you hear of Eureka Forbes? (Rank
your preference)
Health & Safety Cleanliness Affordability
9. Do you use any of the Eureka Forbes products?
a) Yes c) No
Questions 10 to 13 not applicable to Eureka Forbes Customers.
10. Have you come across any of the following promotional activities of any water
purifier/vacuum cleaner brands?
a) Advertisements b) Road Shows c) Exhibitions d) field Demonstrations
e) Others.
11. If given an opportunity to buy a water Purifier which brand would you prefer?
(Rank your preference
Eureka Forbes Kent Hindustan Unilever Pureit Tata
Godrej Bajaj Others
12. If given an opportunity to buy a Vacuum Cleaner which brand would you
prefer?(Rank your preference
Eureka Forbes LG Inalsa Panasonic Others
s
t
a
r
t
i
n
g
f
r
o
m
1
)
s
t
a
r
t
i
n
g
f
s
t
a
r
t
i
n
g
f
r
o
m
1
)
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70
Questions 14 to 22 applicable to Eureka Forbes Customers only.
13. Where did you buy the product from?
a) Modern Retail Outlet b) Dealers C) Online
14. Have you had prior knowledge of our product before you came in to the retail shop to
buy?
a) Yes b) No
15. What was the major influencing factor that led you to purchase AquaSure Water Purifier? (Rank your preference starting from 1)
Product Quality Price Service Brand image
Salesman/Dealer Influence
16. What was the major influencing factor that led you to purchase Forbes Vacuum Cleaner? (Rank your preference starting from 1)
Product Quality Ease of use Price Brand Image
Salesman/Dealer Influence
.
17. Have you come across or been part of any programmes/events organized by the
Eureka Forbes?
a) Water Testing Programmes b) Exhibitions c) Road Shows
d) Others (Specify) e) None
18. If yes, have such programmes or events influenced your purchase decision?
a) Yes b) No
19. Given your experience with