A STUDY ON BRAND LOYALITY OF CUSTOMERS TOWARDS TAJ MAHAL TEA PROJECT REPORT SUBMITTED IN PARTIAL FULFILMENT FOR THE A WARD OF DEGREE OF
BACHELOR OF BUSINESS MANAGEMENT BY UNDER THE GUIDANCE OF
FACULITY MEMBER DEPARTMENT OF COMMERCE AND MANAGEMENT STUDIES
KURNOOL. (AFFILIATED TO S.K. UNIVERSITY, ANANTAPUR)
2009-2010
CERTIFICATE This is to certify that this is the bonafide Project work entitled ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………..
Is
carried
…………………………………………………………………...
out
by
Registered
Miss No
……………………….. Year ………………………. In partial fulfillment of the requirement for the award of Business Management of Sri Krishnadevaraya University, Anantapur.
Principal.
Examiner Project Guide.
PROJECT GUIDE CERTIFICATE a final year B.B.M. Student of Degree College, Kurnool in partial fulfillment for the award of BACHELOR OF BUSINESS MANAGEMENT has done her project entitled “A STUDY ON BRAND LOYALITY TOWARDS TAJMAHAL” under my guidance.
All details collected and furnished by her are true and original to my Knowledge. Place: Date:
Lecturer in Management
ACKNOWLEDGEMENT
I express my heartful and sincere gratitude to Principal, , Kurnool for the excellent inspiration provided. I express my spontaneous gratitude to my project guide Mr. Lecturer in Management Studies for her valuable opinions.
And also I thank all the commerce Department Lecturers for their continuous encouragement and suggestions. I express my sincere thanks to my friends, parents for there motivational and contructive criticism.
CONTENTS
CHAPTER-1 INTRODUCTION COMPAYN PROFILE PRODUCT PROFILE CHAPTER-2 BRAND LOYALTY CHAPTER-3 OBJECTIVES RESEARCH METHODOLOGY LIMITATIONS CHAPTER-4 DATA ANALYSIS & INTERPETATION CHAPTER-5 FINDINGS OF THE STUDY CHAPTER-6 SUGGESTIONS CHAPTER-7 ANNEXURE QUESTIONNAIRE BIBILIOGRAPHY
INTRODUTION Tea, discovered by Shen Nung In 2737 B.C., brought fortune to England as well as loss of her colonies in the New World.
Little did Chinese Emperor Shen Nung realize that in 2737 B.C., when dried leaves blew into his cup of hot water, the beverage he discovered would cause sensations around the world. During this time, water was always boiled for hygienic reasons. The pleasant aroma and refreshing taste enchanted him and soon every one in the realm was drinking tea. Tea continued to travel throughout the orient and it was during the time of the European explorers tea made its cultural broad jump .The East India Tea company brought tea into Holl and but its prohibitive cost of $100 per pound kept tea as a rich man’s beverage until so much was imported that tea prices fell and was sold in small food shops. In the 1880’s, America came to the fore font as the biggest importer of tea due to faster clipper ships and the ability to pay its debts in gold.
A tea plantation owner introduced iced tea to the St. Louis World‘s Fair in 1904 .It was an extremely warm day and his hot tea booth was being passed up by the crowds in favour of cold drinks .As desperate measure, since he was out time and money for even coming to the Fair, he added ice to the vats of liquid hot tea and in the process made it one of the highlights of the 1904 World’s Fair. The tea is grown on tea estates and 70% of the tea we drink is grown in Sri Lanka, India, Indonesia, Kenya, Argentina and China. Today there are three basic types of tea: black oolong and from these three types spring over 3,000 cultivated varieties.
COMPANY PROFILE In the summer of 1888, visitors to the Kolkata harbour noticed creates full of Sunlight soap bars, embossed with the words “Made in England by Lever Brothers”. With it,
began an era of marketing branded and Packaged Mass
Consumption Goods (PMCG).Leading in, 1933, to the formation of Lever Brothers India Limited, and finally Unilever Limited in 1956.
The brands which today are household names, in our portfolio, HUL are the leader in Home and Personal Care Products, Foods and Beverages.
The Hindustan Unilever Limited stepped into the Beverages Industry with brand name BROOKE BOND. In Beverages, Hindustan Unilever Limited is the world’s largest packet Tea marketer. The big Tea marketer. The big tea brands Tajmahal, Red label, 3Roses, Taaza and Yellow label.
HUL seek to “meet everyday needs of people every where to anticipate the aspirations of our consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of life”. Over the past 70 years. HUL has introduced about 110 brands. HUL focus on 30 Power Brands most of which have become market leaders and household names in the country. HUL is the country’s largest marketer of Soaps, Detergents and House hold Care Products. HUL expertise’s in Personal Products makes HUL the leader in Shampoos,
Skin Care Products, Colour Cosmetics, Deodorants, and
Fragrances. In Foods and Beverages, HUL remain undisputed market leaders in Tea, Processed Coffee, Branded Wheat Flour, Tomato Products, Ice cream, Jams, and Squashes. In New Ventures, the new entrants are in Healthcare, Confectionaries and Network Marketing.
Some of the HUL Brands are: BEVERAGES CARE BROOKE BOND Taj mahal Red label 3Roses Taaza Lipton Yellow Label Lipton Green Label Lipton Ice Tea BRU COFFEE FABIC WASH Personal Wash Surf Rin Wheel Colour Cosmetics Lakme
ANNAPURNA ATTA
Kwality Ice Creams KISSAN
SKIN Fair & Lovely Ponds ORAL CARE Pepsodent Close -Up Hair Care Sunsilk Clinic
Lifebuoy Liril Lux Breeze House Hold Care Vim
MARKETING HLL is present in Home & Personal Care and Foods & Beverages categories. HLL and Group companies have a bout 40,000 employees, including 1425 managers. For marketing, HLL divides the country into four regions, with regional branches in Delhi, Kolkata, Chennai, and Mumbai. Headed by a Regional Manager, they comprise Regional Sales Manages and Area Sales Managers, assisted by dedicated field forces, comprising Sales Officers and Territory Sales In charges. In marketing, each category has a Marketing Manager who heads a team of Brand Managers dedicated to each or a group of brands. The Brand Managers, wherever appropriate, focus exclusively on brand strategy or implementation.
MANUFACTURING Each Division has a nation wide manufacturing base, with each factory peopled by teams of Production, Engineering, Quality Assurance, Commercial and Personal Managers. India was the top producer of tea for nearly a century, but was displaced by China as the top tea producer in the 21 st century. Indian tea companies have acquired a number of iconic foreign tea enterprises including British brands Tetley and Typhoo. India is also the world’s largest tea-drinking nation. However, the per capita consumption of tea in India remains a modest 750 grams per person every year due to the large population base and high poverty level.
Brand Update: Taj Mahal Tea Taj Mahal tea has changed its Brand Ambassador. Recent TVC s show Saif Ali Khan endorsing the brand. Taj Mahal has been using the Tabla Maestro Ustad Zakir Hussain as its brand ambassador from 1990’s. Since Ustad Zakir was endorsing only this brand, the recall was high. Ustad and Taj Mahal was touted as the classic example of a successful celebrity endorsement. The collaboration with the brand and the ambassador went that far that Ustad once challenged in a TVC created lot of controversy. The new brand ambassador is Saif. HLL may have reasons for changing the brand ambassador. The brand manager may have been bored using the same face?.Saif may be an attempt to make the brand more contemporary. Ustad and his fans are older. Hence there is a chance that the new
generation may miss out on the charm of Ustad. So the attempt may be to make the brand relevant to the new generation. In Theory we site examples where the users of the brand getting older and the brand not able to connect the new generation.
TAJ MAHAL TEA: WAH TAJ Brand: Brooke Bond Taj Mahal Company: HLL Agency: O & M Brand Count: 101 Taj Mahal tea is the market leader in the 15,000,000 kg Indian Premium leaf tea market. This 40 year old brand is constantly evolving to the changing times. The brand which is estimated to be worth Rs.200 crore, so far had a consistent promotional strategy which placed itself in the top league. But with the competition catching up in the form of Tata Tetley and the fear of young consumers moving away from the brand is causing a concern to the brand owners. The brand has already undergone 4 makeovers. This July saw the relaunch of Taj with a new baseline and world class packaging. The new makeover comes after a change in the communication strategy in 2002-2003. Taj mahal tea was positioned by HLL as the best tea. In 2003 the much popular baseline was changed to “Sabse Khas Taj Ehasas” from the a famous and simple “Wah Taj”. 2006 saw the brand going back to the same famous positioning “Wah Wah Taj” With an additional “Wah”. Since 1869, Brooke Bond’s specialists have selected tender leaves from the best
Gardens to scientifically and ceremonially bring nature’s gift to you. Brooke Bond Tea is expertly tasted, graded and perfectly blended in the unique Brooke Bond Tea Excellence Centre to cheer your senses in all moments of life. Brooke Bond teas are rich, natural source of antioxidants called flavonoids that protect cells and tissues in your body. Our master blenders and tasters painstakingly select the finest teas to create a robust full-bodied brew with a lingering aroma that makes you say………..’Wah Taj’
INTRODUCTION CONSUMER With increasing number of products in the market and with the number of options available for the consumers the success of a product is not always guaranteed. With Almost all companies going for marketing strategies and with great variety of products a available the consumer faced different options which led to stiff competition a among the product markers. In order to gain more hold in the market
Various surveys are done and are being done by the experts and policy makers, the Of the consumers and develop products as per the aspiration of them. As a step to gain The interest of the consumers, product makers try to develop intimate relationship with The consumers, open outlets or stores with customers friendly staff, give incentives to the consumers in time of festivals etc., to gain grip over the consumer and ultimately Over the market. In the present highly competitive economic system the success, survival and growth of firms warrants accurate knowledge a bout consumers, their behavior How, why, where, when they buy? Understand consumer behavior is a crucial Task of the Market Manager, below we will try to know the length of consumer behavior.
Cause Related marketing and its impact on Corporate Brand Image and Sales Indian Scenario Cause related marketing and its impact on organizational selling and brand loyalty. 1. The HLL announced a contribution of a diarrhea project on sale of its LIFEBUOY brand soap. It helped to improve market share of ‘lifebuoy 2. In India ‘whisper’ a brand in the sanitary nappies market where the materialistic difference is minimal announced a contribution of Re. 1 on every pack of its sales for blind relief society. It helped to improve market share for ‘Whisper’. 3. NOVARTIS INDIA LTD., a pharmaceutical company in cause related marketing scheme donated 2% or value of sales of OVALTLINE PLUS towards CRY’S (a NGO’S) Gujarat rehabilitation operations. Total amount raised was approximate Rs. 40,000. 4. The HLL announced a Rs. 5/- contribution to SOS children‘s village, a social service organization working for educating every little heart by inserting coupons in its Brooke Bond Taj Mahal Tea powder packs. The customer has to tell the coupon number to the company through a toll free telephone number. 5. A segment market consists a group of customers who share similar set of wants. Loyalty Status Consumers have varying degrees of loyalty to specific brands, stores, and companies. Oliver defines loyalty as “A deeply held commitment to Re-buy or re-patronize a preferred produce or service in the future despite situations influences and marketing efforts having the potential to cause switching
Behavior. Buyers can be divided into four groups according to brand loyalty status. 1. Hard-core loyals: Consumers who buy one grand all the time. 2. Split loyals: Consumers who are loyal to two or three brands. 3. Shifting loyals: Consumers who shift from one brand to another. 4. Switchers: Consumers who show no loyalty to any brand. Each market consists of different numbers of the four types of buyers. A brand-loyal market is one with the high percentage of hard-core brandloyal buyers. The tooth-paste market and the beer market are fairly high brand-loyal markets. Companies selling in a brand-loyal market have a hard time gaining more market share, and companies that enter such a market have a hard time getting in. A company can learn a great deal by analyzing the degrees of brandloyalty (1) By studying its hard-core loyals; the company can identify its products strengths. (2) By studying its split loyals, the company can pinpoint which brands are most competitive with its own. (3) By looking at customers who are shifting away from its brand, the company can in learn about its marketing weakness and attempt to correct them. What appear to be brand-loyal purchase patterns may reflect habit, indifference, a low price,
A high switching cost, or the no availability of other brands. Thus a company must carefully interpret what is behind the observed purchase patterns.
OBJECTIVES
1. To know the Brand Loyalty towards different beverages brands. 2. To know the consumer satisfaction towards Brooke Bond Tea Products. 3. To know the different brands which are preferred by the consumers. 4. To determine the reasons for the purchase of Taj Mahal product. 5. To know the various factors that influenced the consumer to go for Brooke Bond products. 6. To know the consumer opinion regarding the quality, promotional activities and brand images of Brooke Bond products. 7. To know the consumer opinion regarding the price of Brooke Bond brands when compared to other brands. 8. To know the consumer feeling regarding the availability of the product.
RESEARCH METHODOLOGY To collect the information, marketing research is taken into consideration. Marketing research has been defined as “the systematic gathering, recording, analyzing of data about the problems relating to marketing of goods and services from producer to the consumer”. AMERICAN MARKETING ASSOCATION DATA SOURCES There are two sources of collecting data: (1) (2)
Primary data Secondary data In the survey being conducted both primary and secondary sources of data have been used in the collection of relevant information. PRIMARY DATA Primary data is the data collected specifically by or for the data us users. Primary data is the data gathered for a specific purpose or for a specific research report. A questionnaire is used as a tool for the systematic collection of relevant information. A well structured questionnaire consisting of 15 simple questions has been prepared and directed to the respondents. The questionnaire prepared consists of closed-ended questions which includes dichotomous, multiple choice and rating scale type of questions. The close-ended questions are very easy to answer from the questionnaires responded by the respondents. The relevant data regarding the market share, customer awareness and preference is gathered.
SECONDARY DATA Secondary data is the data that is collected for another purpose and already exist some where. Data pertaining to company is collected from the company’s website and catalogues. The company profile gives a detailed report of the history and the various products being manufactured by it. The first section of the questionnaire is prepared mainly for collecting the personal information about the respondent. The second section of the questionnaire consists of multiple choice questions. It is prepared to collect the information amount the brand name of Brooke Bond used by the consumer, source of awareness, opinion on the price, quality, brand image, availability, influencing factors, satisfaction of the respondents towards Brooke Bond products and finally their feelings, attitudes towards the product. 1) Sampling Unit
- Business people, Professionals
Housewives and Students are surveyed. 2) Sampling Size
- 100
3) Sampling procedure – Stratified random sampling method is used.
LIMITATONS 1. The method used in this project is survey method results obtained may not be fully accurate and believable. 2. The research has been centered to only 50 customers and then calculated to 100 customers rather than doing survey on millions of customers. 3. The whole project is confined to Kurnool city only. 4. Time was not sufficient and the project was restricted. 5. Some customers were not ready to part with their information.
HABITATION TO BEVERAGEZ YES/NO YES NO
% OF RESPONDENTS 90% 10%
Description: From the table it is found that, 90% of the respondents are habituated to beverages and 10% not habituated to beverages.
SOURCE:
Questionnaire
BEVERAGES PREFERRED BY THE CONSUMERS
BEVERAGE Coffee Tea Milk Others
% OF RESPONDENTS 10% 80% 10% 0%
DESCRIPTION: From the table, it is found that 10% of the respondents prefer Coffee, 90% prefer Tea, and 10% prefer Milk.
SOURCE: QUESTIONNAIRE
THE BRAND WHICH IS PREFFERED BY THE CONSUMER
TEA BRAND Brookebond Tata Society Others
% OF RESPODENTS 72% 11% 17% 0%
DESCRIPTION: From the survey it is found that 72% of the respondents prefer Brooke bond, 11% prefer Tata and 17% prefer Society.
Source: Questionnaire
TEA BRAND WHICH IS PREFERRED BY THE CONSUMER
PRODUCT Red Label Taj Mahal 3 Roses Lipton Others
% OF RESPONDENTS 48% 32% 8% 8% 8%
Description: From the above table, it is known that, 48% of the respondents prefer Red Label, 32% of the respondents prefer Taj Mahal, 8% prefer 3 Roses, 4% prefer Lipton and 8% prefer other products of Brooke Bond.
SOURCE: Questionnaire
SOURCE OF AWARENESS SOURCE
% OF RESPONDENTS
Ads Newspapers Friends Retailers Others
64% 4% 4% 16% 12%
DESCRIPTION: From the survey, it is found that, 64% of the respondents are aware through Ads, 4% are aware through Newspapers, 4% are aware through Friends, 16% are aware through Retailers and 12% are aware through Other Sources
SOURCE: Questionnaire
FACTORS WHICH INFLUENCED THE CONSUMERS TO GO FOR BROOKE BOND PRODUCTS
Factors Price Quality
% of Respondents 8% 92%
Others
0%
Description: From the above table, it is found that, 8% of the respondents are influenced by Price, 92% are influenced by Quality.
Source: Questionnaire
SATISFACTION ABOUT THE PACKAGE AND PRICE OF THE PRODUCT
Satisfaction Yes No
Package 88% 12%
Price 72% 28%
Description: From the above table, it is found that, 88% of the respondents are satisfied with the package of the Brooke bond products and 12% are not satisfied with the package of the Brooke bond products they prefer.
SOURCE: Questionnaire
OPINION ABOUT QUALITY AND AVAILABILITY OF PRODUCT
Opinion Excellent Better Best Poor
Quality 20% 36% 44% 0%
Availability 30% 50% 20% 0%
DESCRIPTION: From the survey, it is found that, 20% of the respondents opinion about Quality is excellent, 36% opinion is better, 44% opinion is best.
Source: Questionnaire
TIME OF CONSUMPTION OF THE PRODUCT
Time Occasions Generally
% of Respondents 16% 84%
DESCRIPTION: From the survey, it is found that 16% of the respondents will consume at the time of occasions, 84% will consume generally.
Source: Questionnaire
REASONS FOR PREFERENCE OF THE PRODUCT Reasons Refreshment Casual Habit
% of Respondent 56% 44%
DESCRITION: From the above table, it is know that, 56% of the respondents prefer this product this For this product for Refreshment and 44% prefer for Casual Habit.
Source: Questionnaire
CONCLUSIONS
1. It is found from the survey conducted that most of the people prefer Tea compare to the other beverages like Milk, Coffee etc., 2. From the survey it is found that most of the people go for Brooke bond Tea Products. 3. It is found from the survey most of the people go for Brooke bond Tea Products because of its Quality followed by Brand, Price etc. 4. It is found that most of the consumer’s opinion regarding the price is Reasonable. 5. It is found from the survey that most of the consumer’s opinion regarding quality is the best. 6. Most of the consumers purchase Brooke bond Tea products generally and others purchase during some occasions. 7. Most of the consumers take Brooke bond Tea product for refreshment and others consume it as Causal Habit. 8. The satisfaction level of different products in Brooke bond is good followed by excellent and fair. 9. It is found that the availability of the products in market is better. 10.The packaging model of Brooke bond products is good. 11.The survey shows that most of the people has came to know about this product through ads followed by Newspapers, Friends, retailers etc.,
SUGGESTIONS 1. The position in the market is to some extent only, so it can achieve Market Leader position by providing more quality. 2. By reduction in the prices of Brooke bond products it can attract more consumers. 3. Most of the people are not aware of some Brooke bond products like Lipton Ice Tea, Lipton Yellow Label, so the ad campaign for these products should be effective. 4. Promotional activities should be developed i.e. some offers like Lucky Coupons, providing 20% or 30% extra quantity at the same price so that it attracts more consumers. 5. The quality for Brooke bond Tea Products is best and it should reach to
excellent.
QUESTIONNAIRE 1. Are you habituated to beverages? a) Yes b)No 2. Which beverage do you prefer? a) Coffee b) Tea c) Milk d) Others 3. Which tea brand do you use? a) Brook bond b) Tata c) Society d) Others 4. If brook bond, which product do you prefer? a) Redlable b) Tajmahal c) 3roses d) Others 5. How do you come to know about this product? a) Ads b) Newspaper c) Friends d) Retailers 6. What makes you to prefer this product? a) Price b) quality c) others 7. Are you satisfied with the package of the product? a) Yes b) no 8. Your opinion about the quality? a) Good b) Better c) Best d) Poor
9. What opinion about the quality? a) 100 gms b) 250gms c) 599gms d) 1kg 10. What is the frequency of your purchase? a) Weekly b) Fortnightly c) Monthly 11. From where do you purchase this product mostly? a) Supermarkets b) Retailers 12. In which time do you consume it? a) Occasions b) Generally 13. Reasons for your preference to this product: a) Refreshment b) Casual Habit 14. Are you satisfied with the price range? a) Yes b) No 15. What do you feel about the availability of the product? a) Good b) Better c) Best d) Poor
BIBLIOGRAPHY
WEB SITE BRAND LOYALITY
WWW.HUL.COM PHILIP KOTLER
