MAJOR PROJECT REPORT SUBMITTED TOWARDS THE PARTIAL

FULFILLMENT OF

BACHELOR OF BUSINESS ADMINISTRATION

MAJOR PROJECT REPORT ON

COMPARATIVE STUDY ON FMCG SECTOR BETWEEN

HUL AND ITC

BATCH 2016-2019

SUBMITTED BY: PROJECT GUIDE:

Name: Heena Gulati Name: Dr. Kanika Bankhad

Enrolment no.: 00924001716 Designation: Assistant Professor

TRINITY INSTITUTE OF PROFESSIONAL STUDIES

SECTOR – 9 DWARKA

Affiliated to Guru Gobind Singh Indraprastha University, New Delhi

I
 CERTIFICATE

This is to certify that the project work “COMPARATIVE STUDY ON FMCG SECTOR
BETWEEN HUL AND ITC” made by “HEENA GULATI OF BBA (GEN) 2ND SHIFT,
00924001716 is an authentic work carried out by under guidance and supervision of “DR.
KANIKA BANKHAD”.

The project report submitted has been found satisfactory for the partial fulfillment of the
degree of Bachelor of Business Administration.

Project supervisor: Dr. Kanika Bankhad

Signature:

II
 ACKNOWLEDGEMENT

It is in particular that I am acknowledging my sincere feeling towards my mentors who

graciously gave me their time and expertise.

They have provided me with the valuable guidance, sustained efforts and friendly approach.
It would have been difficult to achieve the results in such a short span of time without their
help.

I deem it my duty to record my gratitude towards the “Project supervisor: Dr. Kanika
Bankhad” who devoted her precious time to interact, guide and gave me the right approach to
accomplish the task and also helped me to enhance my knowledge and understanding of the
project.

Name of student: Heena Gulati

Enrollment No: 00924001716

Course/semester: BBA (GEN) / 6th semester

Shift: 2nd shift

Signature:

III
 DECLARATION

I hereby declare that the following documented Project Report titled “Comparative study on
FMCG Sector between HUL and ITC” is an original and authentic work done by me for
the partial fulfillment of Bachelors of Business Administration degree program.

I hereby certify that all the endeavor put in the fulfillment of the task are genuine and original
to the best of my knowledge & I have not submitted it earlier elsewhere.

Name of student: Heena Gulati

Course/semester/ shift: BBA (GEN) / 6th semester / 2nd shift

Enrollment no: 00924001716

Signature:

IV
 TABLE OF CONTENT

S. NO. PARTICULARS PAGE NO.

1. Chapter – 1 (Introduction and Literature Review)

1. Industrial Profile
1.1 Introduction 2
1.2 Characteristics 2
1.3 Fast Moving Consumer Electronics 3
1.4 FMCG Sector in India -Recent developments 3
1.5 FMCG Brands in India 4

2. Company Profile
2.1 HUL
2.1.1 Introduction 6
2.1.2 Vision and mission 6
2.1.3 History 7
2.1.4 SWOT 9
2.1.5 Hindustan Unilever Foundation 10
2.2 ITC
2.2.1 Introduction 11
2.2.2 Vision and Mission 11
2.2.3 History 11
2.2.4 SWOT 12
2.2.5 Corporate Social Responsibility 13

3. Literature Review 14

2. Chapter – 2 (Research objectives & Methodology)

1. Research Objectives 16

2. Research Methodology 16

3. Research Design
3.1 Approach used in study 17
3.2 General purpose 17
3.3 Types of Research Design 18

4. Data Collection
4.1 Importance 19
4.2 Sources 20

5. Sampling
5.1 Sampling technique 21
5.2 Sampling size 21

3. Chapter – 3 (Data Processing, Analysis and Interpretation) 23-32

4. Findings 33
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5. Limitations 34
6. Conclusion 35
7. Suggestions & Recommendations 36
8. Bibliography 37
9. Annexure 39

VI
VII
 CHAPTER – 1

INTRODUCTION AND LITERATURE

REVIEW

1
1.1 INDUSTRIAL PROFILE

1.1.1 INTRODUCTION

Fast moving consumer goods (FMCG) or Consumer packaged goods (CPG) are products that
are sold quickly and at a relatively low cost. Examples include non-durable goods such as
packaged foods, beverages, toiletries, over-the-counter drugs, and other consumables. Many fast-
moving consumer goods have a short shelf life, either as a result of high consumer demand or as the
result of fast deterioration. Some FMCGs such as meats, fruits, vegetables, dairy products, and baked
goods are highly perishable. Other goods, such as pre-packaged foods, soft toiletries have high
turnover rates. Packaging is critical for FMCGs. To become successful in the highly dynamic and
innovative FMCG segment, a company not only has to be acquainted with the consumer, brands, and
logistics, but also, it has to have a sound understanding of packaging and product promotion. The
packaging has to be both hygienic and customers-attracting. Logistics and distribution system often
require secondary and tertiary packaging to maximize efficiency. Unit or primary protects products
and extends shelf life while providing product information to consumers.

The profit motives on FMCG products can be relatively small, but they are generally sold in large
quantities; thus, the cumulative profit on such products can be substantial. According to BASES, 84%
of professionals working for fast-moving consumer goods are under more pressure to quickly bring
new products to the market than they were five or ten years ago. With this in mind, 47% of those
surveyed confessed that product testing suffers most when deadlines are accelerated.

The growth of the internet over the past quarter century and the rise of the brand community
phenomenon have contributed greatly to the demand for FMCGs. However, most FMCGs are not
ordered online as most consumers opt for the convenience of nearby brick and mortar stores for
products in this category.

1.1.2 CHARACTERISTICS

The following are the main characteristics of FMCGs:

A. From the consumer perspective

 Frequent purchases
 Low engagement (little or no effort to choose the item)
 Low prices
 Short shelf life
 Rapid consumption

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 B. From the marketer perspective
 High volumes
 Low contribution margins
 Extensive distribution networks
 High stock turnover

1.1.3 FAST- MOVING CONSUMER ELECTRONICS

Fast-moving consumer electronics are typically low-priced generic items with many
comparable alternatives offering similar functionality. Examples of consumer electronics
include: mobile phones, MP3 players, game players, earphones, headphones, OTG cables,
and digital disposable cameras.

1.1.4 FMCG SECTOR IN INDIA

The FMCG Sector in India is the fourth largest sector in the Indian economy. As per the
reports of the 2005-06 financial years, the market size of the sector was registered as USD
13.1 billion. The FMCG Sector in India involves a strict competition between the organized
and unorganized sector of consumer durables. India offers an abundance of raw materials,
low-priced labour costs and also has a presence across the entire value chain. As per the
recent developments in FMCG it is assumed that the consumption of the FMCG products will
have a satisfactory growth with the rising income level of Indian populace in both the rural
and urban areas. Around 200 million people are expected to become the consumers of
processed and packaged foods by the year 2010.

The FMCG sector has changed its strategies and has opted for a more well-planned marketing
of the products to penetrate both the rural and urban markets. To execute these tasks, the
FMCG companies are hiring more and more people which have led to an increase in the job
prospects in this sector. Thus, the FMCG sector is creating massive employment with good
career prospects. Marketing, retail, sales, services and supply are the key areas which
generates maximum career scopes in FMCG Industry in India.

FMCG sector in the Indian rural market is one of the most booming sectors in Indian
economy. The villages of India account for 12.2% of the world‟s population. The farm sector
has been one of the significant sectors which boosted the rural economy resulting in the
higher consumption of FMCG products. The consumers in both rural and urban sectors can

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afford high-priced branded products nowadays with the high disposable income. The FMCG
sector in India has grown significantly in the year 2007 and this gave rise to huge prospects in
the sector. The rural and urban fared equally well in the processed food items in the year
2007. The rural market separately performed well in the personal care, fabric care, and hot
beverages while the urban market did well in home care, personal care, bakery, dairy
products, and the like.

Recent Developments in FMCG Sector in India

 Finance Minister, Mr. P. Chidambaram declared several tax sops for the FMCG sector
in India along with putting due emphasis on the infrastructure developments in the
same.
 The usual growth drivers such as penetration, per capita consumption, population, and
household income were quite strong in 2007 and also the consumption of the FMCG
products has been increased outstandingly in 2007.
 Biscuits worth Rs.50 per kilogram are fully exempted from excise duty, customs duty
on food processing machineries were reduced from 7.5% to 5%, excise duties on
food mixes were reduced from 16% to 8%, and taxes were reduced on edible oils.
ITC, Dabur, HUL and Marico were directly benefited from these.
 The consumption of health and personal care products in FMCG sector has increased
in the recent past with rise in disposable income especially among the youth group in
India.

1.1.5 FMCG BRANDS IN INDIA

1. Hindustan Unilever Ltd. – Lux, Lifeboy, Brookebond, Kawality Walls, Surf Excel,
Pepsodent, Close Up, Vaseline, and many more
2. ITC (Indian Tobacco company) – W. D. & H. O. Wills, Insignia, India Kings, Classic,
Gold Flake, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake
3. Nestle India – Kitkat, Milkmaid, milky Bar, Maggie, Nescafe, Nestle Slim Milk,
Barone and Nestea
4. GCMMF (AMUL) – Amul Kool, Masti Butter Milk, Kool Café, Amul‟s sugar-free
Pro-Biotic ice-cream, etc.
5. Dabur India – Hajmola, Real, Vatika, Nature Care, Lal Dantmanjan, Chyawanprash,
Pudin Hara, Amla, etc.
6. Cadbury India – Gems, 5 star, Celebrations, Éclairs, and Dairy milk.

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7. Britannia Industries – Tiger, good day, 50-50, treat, milk bar, and nutri choice
8. Protector & Gamble Hygiene and Health Care – Vicks action 500+, Vicks VapoRub,
Vicks Cough Drops, Vicks Formula 44 Cough Syrup and Vicks Inhaler
9. Marico Industries – Parachute, Saffola, Medicare, Silk-n-Shine, Revive, Hair & Care,
Sweekar, Nihar, Manjal etc.

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1.2 COMPANY PROFILE

1.2.1 HUL

[Link] INTRODUCTION

Hindustan Unilever Limited (HUL) is India‟s largest Fast Moving Consumer Goods
Company with a heritage of over 80 years in India. On any given day, nine out of ten Indian
thousands use our products to feel good, look good and get more out of life – giving us a
unique opportunity to build a brighter future.

HUL works to create a better future every day and helps people feel good, look good and get
more out of life with brands and services that are good for them and good for others.

With over 35 brands spanning 20 district categories such as soaps, detergents, shampoos, skin
care, toothpastes, deodorants, cosmetic, tea, coffee, packaged foods, ice cream, and water
purifiers, the company is a part of the everyday life of millions of consumers across India.
Its portfolio includes leading household brands such as Lux, Lifeboy, Surf Excel, Rin, Wheel,
Fair & Lovely, Pond‟s, Vaseline, Lakme, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup,
Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Walls and Pureit.

The company has about 18,000 employees and has a sales of INR 34619 crores (financial
year 2017-18). HUL is a subsidiary of Unilever, one of the world‟s leading suppliers of Food,
Home care, Personal care, and Refreshment products with sales in over190 countries and an
annual sales turnover of 53.7 billion euro in 2017. Unilever has over 67% shareholding in
HUL.

[Link] VISION AND MISSION

Our vision is to grow our business, while decoupling our environmental footprint from our
growth and increasing our positive social impact. Our business has always been driven by a
sense of purpose, a thread that connects us to our founding companies and their social
missions to improve health, hygiene and livelihoods in their communities.

We continue to believe that business must make a positive contribution to addressing the
challenges the world faces and that this is the only way a business will succeed. In 2009, we

6
launched The Compass – our strategy for sustainable growth, setting out our determination to
build a sustainable business for the long term.

[Link] HISTORY

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).

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.

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.

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 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).

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. HUL's entry into Bread is a strategic

7
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.

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 shareholders 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 17th October 2008, HUL completed 75 years of corporate existence in India. In January
2010, the HUL head office shifted from the landmark Lever House, at Back Bay
Reclamation, Mumbai to the new campus in Andheri (E), Mumbai.

On 15th November, 2010, the Unilever Sustainable Living Plan was officially launched in
India at New Delhi. In March, 2012 HUL‟s state of the art Learning Centre was inaugurated
at the Hindustan Unilever campus at Andheri, Mumbai.

In April, 2012, the Customer Insight & Innovation Centre (CIIC) was inaugurated at the
Hindustan Unilever campus at Andheri, Mumbai

HUL completed 80 years of corporate existence in India on October 17th, 2013.

8
In 2013, HUL launched „Prabhat‟ (Dawn) - a Unilever Sustainable Living Plan (USLP)
linked program to engage with and contribute to the development of local communities
around its manufacturing sites. Also, Unilever‟s first aerosol plant in Asia was inaugurated in
Khamgaon, Maharashtra in 2013.

In 2014, The „Winning in Many India‟s‟ operating framework, piloted in 2013, launched
nationally. Sales offices expanded from four to seven with the launch of offices in Lucknow,
Indore and Bangalore in addition to the existing sales offices in Delhi, Kolkata, Mumbai and
Chennai.

In 2016, HUL unveiled „Suvidha‟ a first-of-its-kind urban water, hygiene and sanitation
community centre in Azad Nagar, Ghatkopar, one of the largest slums in Mumbai.

A new state-of-the-art manufacturing facility was commissioned in Doom Dooma Industrial

Estate, Assam on 11th March 2017.

In 2018, HUL signed an agreement with Vijay Kant Dairy and Food Products Limited
(VDFPL) and its group company to acquire its ice cream and frozen desserts business
consisting of its flagship brand „Adityaa Milk‟ and front end distribution network across
geographies.

[Link] SWOT ANALYSIS

Strength:

Strong based portfolio, price quantity and variety.

Solid base of the company.

Weakness:

Low export levels.

High advertising costs.

Opportunity:

Large domestic market – over a billion populations.

Untapped rural market.

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Threat:

Tax and Regulatory structure.

Mimic of brands.

[Link] HINDUSTAN UNILEVER FOUNDATION

According to estimates, by 2030 the supply of water in India will be half its demand. To
understand and partake in meeting this challenge, we set up Hindustan Unilever Foundation
(HUF) in 2010, a not-for-profit company that acts as a vehicle to anchor water management
related community development and sustainability initiatives of Hindustan Unilever Limited.
HUF operates the “Water for Public Good” programme in 57 districts across India in
partnership with 20 NGOs and multiple co-funding agencies.

The foundation supports programs focussed on water conservation, community-based

governance of water resources and efficient use of water in agriculture HUF also supports
several knowledge initiatives in this area.

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1.2.2 ITC

[Link] INTRODUCTION

ITC is one of India‟s foremost private sector companies with a market capitalisation of US
$10 billion. ITC has a diversified presence in FMCG, Hotels, Packaging, Paperboards &
Speciality Papers and Agri-Business. ITC‟s aspiration to be an exemplar in sustainability
practices is manifest in its status as the only company in the world, of its size and diversity, to
be carbon, water and solid waste recycling positive. In addition, ITC‟s businesses and value
chains create sustainable livelihoods for more than 6 million people, a majority of whom
represent the poorest in rural India.

ITC believes that its core values of trusteeship, customer focus, respect for people,
excellence, innovation and nation orientation have been the guiding principles behind the
Company's phenomenal growth, helping it to become one of India's most admired and valued
enterprises.

[Link] VISION AND MISSION

The ITC Vision: Sustain ITC‟s position as one of India‟s most valuable corporations through
world class performance, creating growing value for the Indian economy and the Company‟s
stakeholders.

The ITC Mission: To enhance the wealth generating capability of the enterprise in a
globalising environment, delivering superior and sustainable stakeholder value.

[Link] HISTORY

ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of
India Limited. As the Company's ownership progressively Indianised, the name of the
Company was changed from Imperial Tobacco Company of India Limited to India Tobacco
Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of the
Company's multi-business portfolio encompassing a wide range of businesses - Fast Moving
Consumer Goods comprising Foods, Personal Care, Cigarettes and Cigars, Branded Apparel,
Education and Stationery Products, Incense Sticks and Safety Matches, Hotels, Paperboards
& Specialty Papers, Packaging, Agri-Business and Information Technology - the full stops in
the Company's name were removed effective September 18, 2001. The Company now stands
rechristened 'ITC Limited,' where 'ITC' is today no longer an acronym or an initialised form.

11
The Company's beginnings were humble.
A leased office on Radha Bazar Lane, Kolkata, was the centre of the Company's existence.
The Company's headquarter building, 'Virginia House', which came up on that plot of land
two years later, would go on to become one of Kolkata's most venerated landmarks.

1925: Packaging and Printing: Backward Integration

1975: Entry into the Hospitality Sector - A 'Welcome' Move
1979: Paperboards & Specialty Papers - Development of a Backward Area
1985: Nepal Subsidiary - First Steps beyond National Borders
1990: Paperboards & Specialty Papers - Consolidation and Expansion
1990: Agri Business - Strengthening Farmer Linkages
2002: Education & Stationery Products - Offering the Greenest products
2000: Lifestyle Retailing - Premium Offerings
2000: Information Technology - Business Friendly Solutions
2001: Branded Packaged Foods - Delighting Millions of Households
2002: Agarbattis & Safety Matches - Supporting the Small and Cottage Sector
2005: Personal Care Products - Expert Solutions for Discerning Consumers
2010: Expanding the Tobacco Portfolio

[Link] SWOT ANALYSIS

Strength:

It is one of India‟s foremost private sector companies.

It leveraged it traditional businesses to develop new brands for new segments.

Weakness:

The company‟s original business was traded in tobacco.

Opportunity:

It is moving into new and emerging sectors including IT, supporting business solutions.

Threat:

Competition from both Domestic and International Markets.

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Duplicate items are available in abundance at much lesser rates.

[Link] CORPORATE SOCIAL RESPONSIBILITY

The core objective of ITC‟s CSR initiatives is to secure the livelihoods of these marginalised
communities not just for today but also for the future. Creating Highly Collaborative multi-
stakeholder Partnerships is a key element in ITC‟s model. In most initiatives, ITC works in
close collaboration with NGOs and target communities. NGO‟s are Project Implementation
agencies, interacting directly and extensively with target communities who have the final say
in major decisions – ensuring that the interventions are suited to their needs and thus have the
best chance of sustained success in the long run.

Other organisations – academic/technical service providers/financial institutions, etc. from

both the public and private sectors – are brought in as required so that that best appropriate
expertise is made available.

ITC also considers state and central governments to be important stakeholders, especially
vital in amplifying the scale of its CSR programmes through public-private partnerships.

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1.3 LITERATURE REVIEW

This section explains the research work already done in the concerned area. Sincere attempts
have been made to briefly summarize and review relevant and specific work in literature,
which may bear direct or indirect impact on the present study. Accordingly, the most relevant
study is listed and reviewed as follows:

ROSE LEAHY (2011):

The study aims to explore relationship marketing and the existence of relationships in mass
consumer markets from the consumer‟s perspective, with the focus on the fast moving
consumer goods (FMCG) sector. The study highlights the dominant negative attitudes that
exist among consumers to relationship marketing as it is operationalized in FMCG markets. It
is found that from the consumers‟ perspective relationships do not and cannot exist in these
markets and that the nature of exchange in such markets is not relationship based.
Consequently, the research concludes that there is a necessity to move away from relationship
rhetoric in FMCG markets, and to explore the true nature of exchange in the quest for
effective marketing strategies. The research also suggests that further research on relationship
marketing should focus on situations where relationships do and can exist and consequently
the boundaries of relationship marketing should be limited to only these situations. By
offering the consumer perspective on relationships and relationship marketing this study
broadens understanding of the phenomenon and makes an important contribution to the
relationship marketing debate.

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 CHAPTER-2

RESEARCH OBJECTIVES AND

METHODOLOGY

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2.1 RESEARCH OBJECTIVES OF THE STUDY

 To study the satisfaction level of users.

 To know the comparative position of HUL in comparison to ITC.
 To study the fast-moving consumer goods sector of both the companies.
 To suggest policy implications to improve the performance in FMCG sector.

2.2 RESEARCH METHODOLOGY

It is a way to systematically solve the research problem. It may be understood as a science of

studying how research is done scientifically. In it we study the various steps that are generally
adopted by the researcher in studying his research problems along with the logic behind
them. It is necessary for the researcher to know not only the research methods/techniques but
also the methodology. Researchers not only need to know how to develop certain tests or
how to apply particular research techniques, but they also need to know which of these
methods or techniques are relevant and which are not, and what would they mean and
indicate.

2.3 RESEARCH DESIGN

A research is a set of methods and procedures used in collecting and analysing measures of
the variables specified in the research problem. A research design is the set of methods and
procedures used in collecting and analysing measures of the variables specified in the
research problem. The design of the study defines the study type (correlational, semi-
experimental, experimental, review, meta-analytic) and sub-type (e.g. descriptive;
longitudinal case study); research problem, hypothesis, independent and dependent variables,
experimental design, and is applicable data collection methods and a statistical analysis plan.
Research design is the framework that has been created to find answers to research questions.

Most commonly used three designs are:

1. Descriptive Research: It is used to describe characteristics of a population or

phenomenon being studied. The objective of descriptive research is to describe the
characteristics of various aspects, such as the market potential for a product/company
or the demographics and attitudes of consumers who buy the product with the help of
primary data collected.
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 2. Exploratory Research: It is conducted for a problem that has not been clearly defined.
It helps determine the best research design, data collection method and selection of
subjects. It should draw definite conclusions only with extreme caution.
3. Casual Research: It is conducted in order to identify the extent and nature of cause
and effect relationships. To determine causality, it is important to observe variation in
the variable assumed to cause the change in the other variables and the measure the
change in the other variables. This type of research is very complex and the researcher
can never completely certain that there are no factors influencing the casual
relationship, especially when dealing with people‟s attitude and motivation.

2.3.1 APPROACH USED IN PRESENT STUDY:

In the study combination of two research designs have been used that is:

 Descriptive Research: It is used to describe characteristics of a population or

phenomenon being studied. The objective of descriptive research is to describe the
characteristics of various aspects, such as the market potential for a product/company
or the demographics and attitudes of consumers who buy the product with the help of
primary data collected.

2.3.2 GENERAL PURPOSE OF RESEARCH DESIGN

The purposes and criteria for formulating a design of research, conditions for judging
causality, and use of research design as a control of variance are discussed. The purpose of a
research design is to provide a plan of study that permits accurate assessment of cause and
effect relationships between independent and dependent variables. The classic controlled
experiment is an ideal example of good research design. Factors that jeopardize the
evaluation of the effect of experimental treatment (internal validity) and the generalizations
derived from it (external validity) are identified. Sources of variance can be controlled by
eliminating a variable, randomization, matching, or including a variable as part of the design.
A research project should be so designed that

(1) It answers the questions being investigated

(2) Extraneous factors are controlled

17
(3) The degree of generalization that can be made is valid.

2.3.3 TYPES OF RESEARCH

1. DESCRIPTIVE DESIGN: It is often used as a pre-cursor to more quantitative

research designs with the general overview giving some valuable pointers as to what
variables are worth testing quantitatively. Descriptive studies can yield rich data that
lead to important recommendations in practice. Approach collects a large amount of
data for detailed analysis.

2. EXPERIMENTAL DESIGN: A blueprint of the procedure that enables the researcher

to maintain control over all factors that may affect the result of an experiment. In
doing this, the researcher attempts to determine or predict what may occur.
Experimental research is often used where there is time priority in a causal relationship
(cause precedes effect), there is consistency in a causal relationship (a cause will
always lead to the same effect), and the magnitude of the correlation is great. The
classic experimental design specifies an experimental group and a control group. The
independent variable is administered to the experimental group and not to the control
group, and both groups are measured on the same dependent variable. Subsequent
experimental designs have used more groups and more measurements over longer
periods. True experiments must have control, Evidence-Informed Policy-Making
Training Curriculum 5 randomization, and manipulation.

3. PHILOSPHICAL DESIGN: This method makes use of the tools of argumentation

based on philosophical traditions, concepts, models, and theories to critically explore
and challenge, for instance, the relevance of logic and evidence in academic debates,
to evaluate arguments about fundamental problems, or to discuss the cause of existing
discourse about a research problem.

4. OBSERVATIONAL DESIGN: This kind of research design draws a conclusion by

evaluating subjects against a control group, in situations where the researcher doesn‟t
have control over the experiment. There are a couple of general types of observational
designs. In direct observations, people realize that you are watching them. Unobtrusive
measures include any way of studying behaviour where individuals have no idea they

18
 are being observed. An observational study allows a good insight into a phenomenon
and eliminates the ethical and practical complications of establishing a large and
cumbersome research project.

5. CROSS-SECTIONAL RESEARCH DESIGN: It has 3 exclusive features: no time

dimension, reliance upon present differences rather than change following
intervention; and, groups are chosen according to existing differences as opposed to
random allocation. The cross-sectional design can only measure differences between
or from among a number of people, subjects, or phenomena instead of change. As a
result, researchers employing this design can only use a relative passive approach to
making causal inferences based on findings.

2.4 DATA COLLECTION

The goal for all data collection is to capture quality evidence that then translates to rich data
analysis and allows the building of a convincing and credible answer to questions that have
been posed. Data collection is the process of gathering and measuring information on targeted
variables in an established systematic fashion, which then enables one to answer relevant
questions and evaluate outcomes. Data collection is a component of research in all fields of
study including physical and social sciences, humanities, and business. While methods vary
by discipline, the emphasis on ensuring accurate and honest collection remains the same. The
goal for all data collection is to capture quality evidence that allows analysis to lead to the
formulation of convincing and credible answers to the questions that have been posed.

2.4.1 IMPORTANCE OF DATA COLLECTION

Regardless of the field of study or preference for defining data (quantitative or qualitative),
accurate data collection is essential to maintaining the integrity of research. Both the selection
of appropriate data collection instruments (existing, modified, or newly developed) and
clearly delineated instructions for their correct use reduce the likelihood of errors occurring.

A formal data collection process is necessary as it ensures that the data gathered are both
defined and accurate and that subsequent decisions based on arguments embodied in the
findings are valid. The process provides both a baseline from which to measure and in certain
cases an indication of what to improve.

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2.4.2 SOURCES OF DATA COLLECTION

Data can be defined as the quantitative or qualitative values of a variable. Data is plural of
datum which literally means to give or something given. Data is thought to be the lowest unit
of information from which other measurements and analysis can be done. Data can be
numbers, images, words, figures, facts or ideas. Data in itself cannot be understood and to get
information from the data one must interpret it into meaningful information. There are
various methods of interpreting data. Sources of data collection can broadly be classified into:

 PRIMARY DATA: Primary data is first-hand information gathered directly from the
source and close to the truth. This data can be collected through experiments,
observations, and interviews through mails, telephones, emails or personal interviews.
The primary data used in this study was collected through interviews and
questionnaires. These companies were chosen based on some specific qualities they
have and all could give us different point of views on the subject because of those
qualities.
 SECONDARY DATA: Secondary data are information that already exists, collected
by others. These could be in form of books, journal articles, online data sources such
as web pages of companies, etc. This data was collected through Internet (web pages
and articles) and books. To make primary data collection more specific, secondary
data will help to make it more useful. It helps to improve the understanding of the
problem.

For this study both primary and secondary data is used to draw out the conclusion.

2.5 SAMPLING

In statistics, quality assurance, and survey methodology, sampling is concerned with the
selection of a subset of individuals from within a statistical population to estimate
characteristics of the whole population. Two advantages of sampling are that the cost is lower
and data collection is faster than measuring the entire population.

Each observation measures one or more properties (such as weight, location and colour) of
observable bodies distinguished as independent objects or individuals. In survey sampling,
weights can be applied to the data to adjust for the sample design, particularly stratified
sampling. Results from probability theory and statistical theory are employed to guide the

20
practice. In business and medical research, sampling is widely used for gathering information
about a population. Acceptance sampling is used to determine if a production lot of material
meets the governing specifications.

The sampling process comprises several stages:

1. Defining the population of concern

2. Specifying a sampling frame, a set of items or events possible to measure
3. Specifying a sampling method for selecting items or events from the frame
4. Determining the sample size
5. Implementing the sampling plan
6. Sampling and data collecting

2.5.1 SAMPLING TECHNIQUE

For this study convenience sampling has been used:-

CONVINIENCE SAMPLING: A convenience sample is a type of non-probability sampling

method where the sample is taken from a group of people easy to contact or to reach. For
example, standing at a mall or a grocery store and asking people to answer questions would
be an example of a convenience sample. This type of sampling is also known as grabbed
sampling or availability sampling. There are no other criteria to the sampling method except
that people be available and willing to participate. In addition, this type of sampling method
does not require that a simple random sample is generated, since the only criterion is whether
the participants agree to participate.

2.5.2 SAMPLE SIZE

Sample size is an important concept in statistics, and refers to the number of individual pieces
of data collected in a survey. A survey or statistic's sample size is important in determining
the accuracy and reliability of a survey's findings. The sample size of the survey conducted
for this project is 60.

21
 CHAPTER – 3

DATA PROCESSING, ANALYSIS

AND INTERPRETATION

22
1 Which company‟s food products do you use?

Table 1

PARTICULARS NUMBER PERCENTAGE

HUL 36 60%
ITC 14 23.30%
Others 10 16.66%

Figure 1

You use the food products of which company

OTHERS
17%

ITC
23% HUL
60%

INTERPRETATION:

From the above table and pie-chart we can interpret that 67% of people uses HUL food
products, 23% of people uses ITC products and 17% of people uses other company‟s
products.

23
2 Which company‟s product/service do you prefer in terms of quality?

Table 2

PARTICULARS NUMBER PERCENTAGE

HUL 26 43%
ITC 19 32%
Others 15 25%

Figure 2

Quality of products

OTHERS HUL
25% 43%

ITC
32%

INTERPRETATION:

From the above table and pie chart we can interpret that 43% of people prefer HUL in terms
of quality, 32% prefer ITC and 25% prefer others.

24
3 Which company‟s product/service do you prefer in terms of quantity?

Table 3

PARTICULARS NUMBER PERCENTAGE

HUL 21 35%
ITC 21 35%
Others 18 30%

Figure 3

Quantity of products

OTHERS HUL
30% 35%

ITC
35%

INTERPRETATION:

From the above table and pie-chart we can interpret that 35% of prefer HUL in terms of
quantity, 35% people prefer ITC and 30% people prefer others.

25
4 The Source of Promotion by the company you have recognized till now?

Table 4

PARTICULARS NUMBER PERCENTAGE

Television 15 25%
Newspapers/Magazines 11 18%
Hoardings 13 22%
Social Media 21 35%

Figure 4

Source of Promotion

Television
Social Media 25%
35%

Newspaper/Magazi
ne
18%
Hoardings
22%

INTERPRETATION:

From the above table and pie-chart we can interpret that 35% people recognized the company
and its products through Social media, 25% through television, 22% through Hoardings and
rest 18% through newspaper and magazines.

26
5 Which company‟s product/service do you prefer in terms of price?

Table 5

PARTICULARS NUMBER PERCENTAGE

HUL 22 37%
ITC 18 30%
Others 20 33%

Figure 5

Price

OTHERS HUL
33% 37%

ITC
30%

INTERPRETATION:

From the above table and pie-chart we can interpret that 37% people prefer HUL in terms of
pricing, 30% people prefer ITC and 33% people prefer others.

27
6 Which company‟s product/service do you prefer in terms of sales service?

Table 6

PARTICULARS NUMBER PERCENTAGE

HUL 18 30%
ITC 23 38%
Others 19 32%

Figure 6

After Sales Services

OTHERS HUL
32% 30%

ITC
38%

INTERPRETATION:

From the above table and pie-chart we can interpret that 30% people prefer HUL in terms of
after sales services, 38% people prefer ITC and 32% people prefer others.

28
7 Do celebrity endorsements influence to buy a product/service?

Table 7

PARTICULARS NUMBER PERCENTAGE

Yes 30 50%
No 30 50%

Figure 7

Celebrity endorsements

No
50% Yes
50%

INTERPRETATION:

From the above table and pie-chart we can interpret that 50% people are influenced by the
celebrity endorsements and 50% are not.

29
8 If other companies will provide you same quality of product/service at competitive price
then will you switch?

Table 8

PARTICULARS NUMBERS PERCENTAGE

Yes 33 55%
No 27 45%

Figure 8

Will you switch

NO
45%

YES
55%

INTERPRETATION:

From the above mentioned table and pie-chart we can interpret that 55% people will switch if
products are being sold at comparatively lower prices while the other 45% choose to stay
loyal towards the company.

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9 Does advertisements of product influences your purchasing decision?

Table 9

PARTICULARS NUMBER PERCENTAGE

Yes 35 58%
No 25 42%

Figure 9

Advertisement

NO
42%

YES
58%

INTERPRETATION:

From the above table and pie-chart we can interpret that 58% people are influenced by the
advertisement while the other 42% people are not influenced by the advertisement.

31
10 Which company‟s product/service do you prefer in terms of packaging?

Table 10

PARTICULARS NUMBER PERCENTAGE

HUL 21 35%
ITC 20 33%
Others 19 32%

Figure 10

Packaging

OTHERS HUL
32% 35%

ITC
33%

INTERPRETATION:

From the above table and pie-chart we can interpret that 35% people prefer HUL products in
terms of packaging, 33% people prefer ITC and 32% people prefer others

32
 4. FINDINGS

The findings of the study are as:

1. Majority of customers prefer HUL products over any other brand in terms of quality,
quantity and pricing of products.
2. The above study shows that the best way of recognition of products/services is
through social media.
3. It was found that the customers prefer ITC over HUL and other brands in terms of its
after sales services.
4. The survey shows that half of the population agrees to be influenced by the celebrity
endorsements while the other half does not
5. The above study shows that majority of customers may switch to other products if the
products are provided to them at comparatively lower prices.
6. The survey shows about 58% of customers agreed that advertisement of products
influences their purchasing decision.
7. The above study shows that 35% of people prefer HUL over ITC and others in terms
of Packaging.

33
 5. LIMITATIONS

A few limitations and constraints came in the way of conducting the study:

1. Due to the time constraint, the research for this project had to be limited.

2. Sample size selected may not be the true representative of the customer base.

3. Analysis was done based upon the personal opinion of respondents individually, not
from any focused groups.

4. Due to inaccessibility to all the needed sources, the research for this project had to be
limited.

5. Collecting data through questionnaire from consumers was time consuming.

34
 6. CONCLUSION

Fast moving consumer goods (FMCG) or Consumer packaged goods (CPG) are products that
are sold quickly and at a relatively low cost. Many fast-moving consumer goods have a short
shelf life, either as a result of high consumer demand or as the result of fast deterioration.
Packaging is critical for FMCGs. To become successful in the highly dynamic and innovative
FMCG segment, a company not only has to be acquainted with the consumer, brands, and
logistics, but also, it has to have a sound understanding of packaging and product promotion.
The packaging has to be both hygienic and customers-attracting. Logistics and distribution
system often require secondary and tertiary packaging to maximize efficiency. Unit or
primary protects products and extends shelf life while providing product information to
consumers.

After having analysed the data, it was observed that the companies not only have to be
acquainted with the consumers, brands, and logistics but also, they should have a sound
understanding of packaging and product promotion. The packaging has to be both hygienic
and customer-attracting.

35
 7. SUGGESTIONS AND RECOMMENDATIONS.

After having analysed the data, it was observed that the following should be taken care of:

1. The companies should be acquainted with the consumers, brands and logistics.

2. They should have a sound understanding of packaging and product promotion.

3. Packaging is critical factor for FMCGs.

4. The FMCG sector should opt for a more well-planned marketing of the products to
penetrate both the rural and urban markets.

5. The packaging of products should be both hygienic and customer-attracting.

36
8. BIBLIOGRAPHY

 (2019). About HUL. [Link].

 (2019). About ITC. [Link].

 (2019). history of HUL. [Link].

 (2019). History of ITC. [Link].

 (2019). Vision and Mission. [Link].

 (2019). Vision and Mission. [Link].

 A.L.P. (2016). Sampling and Evaluation.

 (August 2018). Fast Moving Consumer Goods. Wikipedia, the free encyclopedia.

 B.G.C. (2009). Marketing Research: Research Design 4th Edition. McGraw Hill Education.

 Jupp, D. (n.d.). Data Collection and Analysis.

 Kumar, R. (2005). Research Methodology: A step by step guide for Beginners. Pearson
Education.

 Leahy, R. (2011). Relationships in Fast Moving consumer goods market: The consumers
perspective. Europe: European Journal of Marketing.

 lokesh_045. (June 04' 2015). SWOT Analysis. Delhi: Scribd.

 (March 16' 2011). Recent Developments in FMCG. Business maps of [Link].

37
ANNEXURE

38
 QUESTIONNAIRE

Name:

Gender:

Contact number:

Please spare a few minutes of your valuable time to answer this simple questionnaire.

1. Which company‟s food products do you use?

a. HUL
b. ITC
c. Others

2. Which company‟s product/service do you prefer in terms of Quality?

a. HUL
b. ITC
c. Others

3. Which company‟s product/service do you prefer in terms of Quantity?

a. HUL
b. ITC
c. Others

4. The Source of Promotion you have recognized till now?

a. Television
b. Newspapers/Magazines
c. Hoardings
d. Social Media

39
5. Which company‟s product/service do you prefer in terms of Price?
a. HUL
b. ITC
c. Others

6. Which company‟s product/service do you prefer in terms of after sales services?

a. HUL
b. ITC
c. Others

7. Do celebrity endorsements influence you to buy a product/service?

a. Yes
b. No

8. If other companies will provide you same quality of product/service at competitive

price then will you switch?
a. Yes
b. No

9. Does advertisement of product influences your purchasing decision?

a. Yes
b. No

10. Which company‟s product/service do you prefer in terms of Packaging?

a. HUL
b. ITC
c. Others

40