Sajith 22451

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

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:

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:

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:

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

7.19 Customer Retention 53

7.20 Product Acceptance 54

7.21 Hypothesis 1 55




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

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

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

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.

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.

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.

5

2. REVIEW OF LITERATURE

6

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

9

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

11

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

14

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.

15

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.

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.

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.

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

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

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

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.

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.

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:

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.

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.

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%

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

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%

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

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%

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

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

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%

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

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

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).

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%

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%

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).

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).

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

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

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).

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).

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

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

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%

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%

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.

56

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.

57

7.23 Hypothesis 3:

H0: There is no significant relationship between the brand awareness and the residential


H1: There exists a significant relationship between the brand awareness and the residential


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

60

8. FINDINGS, SUGGESTIONS &

CONCLUSION

61

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,

62

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.

64

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.

65

9. BIBLIOGRAPHY

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

67

10. APPENDIX

68

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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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

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