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 Date:

Sajith P George

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 Date:

Sajith P George

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 Dean & Director

Mr. Jose Varghese Assistant Professor

Place: Angamaly Date:

TABLE OF CONTENTS Chapter 1 1.1 1.2 1.3 2 3 4 5 6 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 7 7.1.1 7.1.2 7.1.3 7.1.4 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 Title INTRODUCTION Importance of the Study Need and Relevance of the Study Components of the Study REVIEW OF LITERATURE CONCEPTUAL OVERVIEW INDUSTRY PROFILE COMPANY PROFILE RESEARCH METHODOLOGY Objective of the Study Scope of the Study Research Design Population Characteristics Sample Design and Sample Size Sources of Data Tools and Methods of Statistical Analysis Hypothesis for Testing Limitations of the Study DATA ANALYSIS & INTERPRETATION Customer Profile - Location Age Group Gender Income Mode of using drinking water Brand Awareness - Unaided Recall for Water Purifiers Brand Awareness - Unaided Recall for Vacuum Cleaners Awareness Aided Recall Source of Information Frequency of Promotional Activities Brand Association % of Customers surveyed Promotional Activities Competitors Brand Preference Water Purifiers Brand Preference Vacuum Cleaners Purchase place Prior knowledge of Products Influencing Factor AquaSure Water Purifier Influencing Factor Forbes Vacuum Cleaner Programmes/Events Influence of programmes/events on purchase decision Page No. 1 2 3 4 5 8 13 16 25 26 26 26 27 27 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52

7.19 7.20 7.21 7.22 7.23 7.24 8 8.1 8.2 8.3 9 10 10.1

Customer Retention Product Acceptance Hypothesis 1 Hypothesis 2 Hypothesis 3 Hypothesis 4 FINDINGS, SUGGESTIONS AND CONCLUSION Findings Suggestions Conclusion BIBLIOGRAPHY APPENDIX Questionnaire

53 54 55 56 57 58 60 61 63 64 65 67 68

LIST OF TABLES Table 7.1.1.1 7.1.2.1 7.1.3.1 7.1.4.1 7.2.1 7.3.1 7.4.1 7.5.1 7.6.1 7.7.1 7.8.1 7.8.2 7.9.1 7.10.1 7.11.1 7.11.2 7.12.1 7.12.2 7.13.1 7.14.1 7.15.1 7.15.2 7.16.1 7.16.2 7.17.2 7.18.1 7.19.1 7.20.1 7.21.1 7.22.1 Title Customer Profile - Location Age Group Gender Income Mode of using drinking water Brand Awareness - Unaided Recall for Water Purifiers Brand Awareness - Unaided Recall for Vacuum Cleaners Awareness Aided Recall Source of Information Frequency of Promotional Activities Brand Association Brand Association (Ranking) % of Customers surveyed Promotional Activities Competitors Brand Preference Water Purifiers Brand Preference Water Purifiers (Ranking) Brand Preference Vacuum Cleaners Brand Preference Vacuum Cleaners (Ranking) Purchase place Prior knowledge of Products Influencing Factor AquaSure Water Purifier Influencing Factor AquaSure Water Purifier (Ranking) Influencing Factor Forbes Vacuum Cleaner Influencing Factor Forbes Vacuum Cleaner (Ranking) Programmes/Events Influence of programmes/events on purchase decision Customer Retention Product Acceptance Sales Data Water Purifier Sales Data Vacuum Cleaners Page No. 32 33 34 35 36 37 38 39 40 41 42 42 43 44 45 45 46 46 47 48 49 49 50 50 51 52 53 54 55 56

LIST OF FIGURES Fig. 7.1.1.1 7.1.2.1 7.1.3.1 7.1.4.1 7.2.1 7.3.1 7.4.1 7.5.1 7.6.1 7.7.1 7.9.1 7.10.1 7.13.1 7.14.1 7.17.1 7.18.1 7.19.1 7.20.1 Title Customer Profile - Location Age Group Gender Income Mode of using drinking water Brand Awareness - Unaided Recall for Water Purifiers Brand Awareness - Unaided Recall for Vacuum Cleaners Awareness Aided Recall Source of Information Frequency of Promotional Activities % of Customers surveyed Promotional Activities Competitors Purchase place Prior knowledge of Products Programmes/Events Influence of programmes/events on purchase decision Customer Retention Product Acceptance Page No. 32 33 34 35 36 37 38 39 40 41 43 44 47 48 51 52 53 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.

1. INTRODUCTION

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.

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 runoff 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 pat ronize 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. 3

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.

2. REVIEW OF LITERATURE

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 6

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.

3. CONCEPTUAL OVERVIEW

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 wor lds 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. 9

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, selfliquidating 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 10

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. 11

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. ii. The increase in sales after the implementation of the promotional activity. The number of customer enquiries after the campaign and how much of these have been converted to sales. iii. iv. v. vi. vii. Increase in the awareness about the company and its products among the public. Customers ability to recall and recognize the brand from among a set of choices. The levels of repeat purchase by the customer. Levels of customer retention. The demographic profile of the customer

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4. INDUSTRY PROFILE

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Indian Water Purifier Industry Globally more than one billion people lack access to safe drinking water nearly all of them in the developing countries, including India. Nearly a third of the worlds population worldwide live in water-stressed areas. This figure is expected to rise to two-third of the population by 2025. In India, over one lakh people die of water borne diseases annually. It is reported that groundwater in one-third of Indias 600 dist ricts 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. 14

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. 15

5. COMPANY PROFILE

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Eureka Forbes, is a joint venture between the Shapoorji Pallonji Groups Forbes & Company Ltd. based in Mumbai and Electrolux of Sweden which came into existence in the year 1982. An over Rs. 11,000 million multi-product, multi-channel organisation, it includes Asia's largest direct sales force, dealer, institutional and rural channels; service and franchised operations network s plus a water projects division. The company pioneered and has led the water and air purifier, cleaning and security systems categories through well-known Superbrand, Aquaguard and other brands likeEuroclean and AquaSure. Eureka Forbes products can be found in over 39 countries across the globe Its numerous accolades include being a case study at the Harvard Business School, one of India's Best Employers (three years in a row) and several mentions in the MBA Marketing Text Book by Philip Kotler. Company History Eureka Forbes launched its first range of vacuum cleaners, Euroclean in 1982 and established its first sales office in the same year. The companys subsidiary for manufacturing water purifiers, Aquamall Water Solutions was also launched in the same year. The company began operations from a single office in Delhi, with just 10 field representatives. Two years later it launched the Aquaguard range of water purifiers. Subsequently, Eureka Forbes launched its dealer division in 1985, its industrial sales division in 1986 and its exports division in 1989. In 1994, the company entered the air purifier segment. In 1995, the company launched the Tornado range of vacuum cleaners and the Aquaflo range of water purifiers exclusively for marketing through the dealer route. In 1997, Eureka Forbes diversified into electronic security systems under the brand name Eurovigil. The company established manufacturing facilities at Bhimtal, Hyderabad and Bangalore. It also had a Research and Development center at Bangalore. Mission Statement To build sustainable relationships with customers, as their Friend for Life by satisfying their evolving health, hygiene, safety and lifestyle needs.

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Vision Statement A happy, healthy, safe and pollution-free environment built on trust and lasting relationships with Customers. Our people; Whose entrepreneurial spirit and ambition is fuelled by the culture of pride, learning, earning and fun. Our products and services; That reflect innovation, become quality benchmarks, and provide real value-for-money. Our policies and practices; That are fair, transparent and constantly improved to maximize stakeholder satisfaction and achieve market leadership. Our Values; CUSTOMER is the centre of our business. Integrity and highest ethical standards. Mutual Respect and trust in our working relationships. Communication that is open, consistent and two-way. Diversity of people, cultures and ideas. Innovation and encouragement to challenge the status quo. Continuous Improvement development and learning in all we do. Teamwork and meeting our commitments to one another. Performance with recognition for results.

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Organizational Structure

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Retail Business The company decision to enter the retail business was primarily a result of launching its Tornado vacuum cleaners and Aquaflo water purifiers in 1995. Over the years the retail business assumed greater significance and by 1999. About 5% of the company sales came from the 2500 strong dealer network. Eureka Forbes saw a lot of potential in its retail business and decided to work towards expanding its dealer network further and doubling the revenue from it. The move was in accordance to the companys plan to add more visibility to its products. Product Portfolio Only the products sold through retail divisions are mentioned as the study encompasses only these products. I. AquaSure Water purification Systems

1. AquaSure RO+UV

2. AquaSure Spring Fresh DX RO

3. AquaSure Nano RO

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4. AquaSure Crystal UV

5. AquaSure Smart UV

6. AquaSure Aquaflo DX

7. AquaSure Amrit

8. AquaSure Galaxy

9. AquaSure Xtra Plus

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II. Forbes Range of Vacuum Cleaners

1. Forbes Trendy Wet & Dry

2. Forbes Trendy Xeon

3. Forbes Trendy Steel

4. Forbes Trendy Nano

5. Forbes Easy Clean

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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 23

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. 24

6. RESEARCH METHODOLOGY

25

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. 26

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 noncustomers across the state of Kerala. 6.5 SAMPLE DESIGN AND SAMPLE SIZE A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or procedure the researcher would adopt in selecting items for the sample. Judgmental sampling has been used for this study. The sample size of this study has been kept to 100. 6.6 SOURCES OF DATA Both primary and secondary data were collected for the purpose of the study. Primary Data Primary data was collected by using direct interviews and questionnaires. Secondary Data Secondary data was collected books, company files, magazines, newspaper articles and the company website.

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6.7 TOOLS AND METHODS OF STATISTICAL ANALYSIS The analysis of collected data is done through various statistical tools. The following tools have been used in this research for statistical analysis and interpretation: 1. Percentage Analysis Percentage refers to a special kind of ratio. It is used to make comparison between two or more series of data. They can be used to compare the relative items, the distribution of two or more series of data since the percentage reduce everything as common base and allow the meaningful comparison to be made. No. of respondents Percentage (%) = -------------------------- x 100 Total respondents

2. Analysis using Weighted Average Method An average in which each quantity to be averaged is assigned a weight. These weightings determine the relative importance of each quantity on the average. Weightings are the equivalent of having that many like items with the same value involved in the average. he average of a quantity is calculated after summing up all the values of that quantity and then dividing it by the total number. A weighted average is calculated by taking into consideration, additional conditions associated with each of the values for the data. Weighted Average = (x1 w1 + x2 w2. .+ xn wn) / (w1 + w2. . + wn) = i = 1 to n (xi wi) / i = 1 to n wi 3. Paired T-test Method The paired t test provides a hypothesis test of the difference between population means for a pair of random samples whose differences are approximately normally distributed. The test statistic is calculated as:

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where d bar is the mean difference, s is the sample variance, n is the sample size and t is a Student t quantile with n-1 degrees of freedom. 4. Chi-Square Test It is a non-parametric test which can be used to determine if categorical data shows dependency or the two classifications are independent. Chi-square test can be used to: (1) test the goodness of fit, (2) test the significance of association of between two attributes, and (3) test the homogeneity or the significance of the population variance. 5. SPSS SPSS is a computer program used for survey authoring and deployment, data mining ,text analytics, statistical analysis, and collaboration. SPSS (originally, Statistical Package for the Social Sciences) was released in its first version in 1968. It is used by market researchers, health researchers, survey companies, government, education researchers, marketing organizations and others. It is used by market researchers, health researchers, survey companies, government, education researchers, marketing organizations and others. 6. Tables, Graphs and Charts Simple statistical tools like tables, graphs and charts are also used in this research for tabulation and statistical representation of data.

6.8 HYPOTHESIS FOR TESTING Hypothesis 1: H0: The promotional activities have no significant impact on the sales of AquaSure Water Purifiers. H1: The promotional activities have significant impact on the sales of AquaSure Water Purifiers.

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Hypothesis 2: H0: The promotional activities have no significant impact on the sales of Forbes Vacuum Cleaners. H1: The promotional activities have significant impact on the sales of Forbes Vacuum Cleaners.

Hypothesis 3: H0: There is no significant relationship between the brand awareness and the residential location of the respondent. H1: There exists a significant relationship between the brand awareness level and the residential location of the respondent.

Hypothesis 4: H0: There is no significant relationship between the awareness level and the age group of the respondent. H1: There exists a significant relationship between the awareness level and the age group of the respondent.

6.9 LIMITATIONS OF THE STUDY The customers to be surveyed are highly scattered. There are possibilities of biased responses. The time allotted to do carry out the project is also limited. The sample size had to be restricted to 100 due to time constraints.

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7. DATA ANALYSIS AND INTERPRETATION

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7.1 Customer Profile

7.1.1 Location Table 7.1.1.1 Location

Rural

Semi-Urban

Urban

Total

25

19

56

100

Rural 25% Urban 56% Semi-Urban 19%

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.

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7.1.2 Age Group

Table 7.1.2.1 Age Group Less than 25 19 26 - 35 19 36 - 50 30 50 and above 32

35 30 25 20 15

10
5 0 Less than 25 26 - 35 36 - 50 50 and above

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.

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7.1.3 Gender

Table 7.1.3.1 Gender Male 66 Female 34

Female 34% Male 66%

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.

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7.1.4 Income

Table 7.1.4.1 Income Less than 1 35

1 - 2.5 15

2.5 - 4 50

4 - 6.5 0

above 6.5 0

50 45 40 35 30 25

20 15
10 5 0 Less than 1 1 - 2.5 2.5 - 4 4 - 6.5 above 6.5

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.

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7.2 Mode of using drinking water

Table 7.2.1 Mode of using drinking water UV Purified 16

Directly 16

Boiled 35

Filtered 33

Total 100

UV Purified 16%

Directly 16%

Filtered 33%

Boiled 35%

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. 36

7.3 Brand Awareness - Unaided Recall for Water Purifiers

Eureka Forbes

84%

Pure it

31%

Kent

27%

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%).

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7.4 Brand Awareness - Unaided Recall for Vacuum Cleaners

Eureka Forbes

68%

Philips

10%

Panasonic

8%

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%).

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7.5 Awareness about the product Aided Recall

Table 7.5.1 Awareness Aided Recall

Yes 77%

No 23%

No 23%

Yes 77%

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.

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7.6 Source of Information

Table 7.6.1 Source of Information Print Advertis ements 44 Friends/ Relative s 17 Exhibiti ons/Tra de Shows 2 InStore Kiosks 3 Company Website/ Social Media 2 Field Demons trations 10

Total

77

Print Advertisements 2% 13% Friends/Relatives Exhibitions/Trade Shows 57% 22% Company Website/Social Media Field Demonstrations In-Store Kiosks

4%
2%

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.

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7.7 Frequency of promotional activities

7.7.1 Frequency of Promotional Activities Once in 3 Month s 9 Once in 6 Month s 39

Never 7

Once a Week 0

Once a Month 7

Once a Year 15

Once a Year

Once in 6 Months

Once in 3 Months

Once aMonth

Once a Week

Never

10

15

20

25

30

35

40

45

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. 41

7.8 Brand Association

Table 7.8.1 Brand Association Rank 1 2 3 Health 45 33 22 Cleanliness 55 37 8 Affordability 0 30 70

Table 7.8.2 Brand Association - Ranking Health & Safety 223 2

Cleanliness 247 1

Affordability 130 3

Weighted score Rank

Interpretation: Respondents were asked to rank the factors that come to their mind when they hear about Eureka Forbes. With a weighted score of 247, Cleanliness was ranked 1 followed by Health & Safety (223) and Affordability (130).

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7.9 Percentage of Customers and Non-Customers Surveyed

Table 7.9.1 % of Customers surveyed Yes 50% No 50%

No 50%

Yes 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.

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Information collected from non-customers only (7.10 7.12).

7.10 Promotional Activities Competitors

Table 7.10.1 Promotional Activities Competitors Advertisements 34 Road Shows 2 Exhibitions 4 Field Demonstrations 10

Field Demonstrations 20% Advertisements 68% Exhibitions 8%

Road Shows 4%

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%). 44

7.11 Brand Preference Water Purifiers

Table7.11.1 Brand Preference Water Purifiers Rank 1 2 3 4 5 6 Eureka Forbes 21 29 0 0 0 0 Kent 0 11 39 0 0 0 HUL 29 10 11 0 0 0 Tata 0 0 0 30 20 0 Godrej 0 0 0 20 20 10 Bajaj 0 0 0 0 10 40

Table 7.11.2 Brand Preference Water Purifiers (Ranking) Eureka Forbes Weighted score Rank 271 1 Kent 211 3 HUL 268 2 Tata 130 4 Godrej 110 5 Bajaj 60 6

Interpretation: This question was intended to know the brand preference of the respondents in case of water purifiers. Respondents were asked to rank their preferences. With a weighted score of 271 Eureka Forbes was ranked first. It was followed by HUL (268), Kent (211), Tata (130), Godrej (110) and Bajaj (60).

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7.12 Brand Preference Vacuum Cleaners

Table 7.12.1 Brand Preference Vacuum Cleaners Rank 1 2 3 4 Eureka 25 25 0 0 LG 12 13 25 0 Inalsa 0 12 12 26 Panasonic 13 0 13 24

Table 7.12.2 Brand Preference Vacuum Cleaners (Ranking) Eureka 175 1 LG 137 2 Inalsa 86 4 Panasonic 102 3

Weighted score Rank

Interpretation: This question was intended to know the brand preference of the respondents in case of vacuum cleaners. Respondents were asked to rank their preferences. With a weighted score of 175 Eureka Forbes was ranked first. It was followed by LG (137), Panasonic (102) and Inalsa (86).

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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 10 Dealers 40 Online 0

45 40 35 30 25 20 15 10 5 0 Modern Retail Outlet Dealers Online

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.

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4.14 Prior knowledge of Products

Table 7.14.1 Prior knowledge of Products Yes 42 No 8

16%

Yes No 84%

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.

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7.15 Influencing Factor AquaSure Water Purifier

Table 7.15.1 Influencing Factor AquaSure Water Purifier Brand Image 13 22 6 8 0 Salesman/De aler Influence 0 10 10 16 13

Rank 1 2 3 4 5

Quality 36 7 6 0 0

Price 0 0 22 13 14

Service 0 6 7 14 22

Table 7.15.2 Influencing Factor AquaSure Water Purifier (Ranking) Salesman/ Dealer Influence 115 3

Quality Weighted score Rank 226 1

Price 106 4

Service 95 5

Brand Image 187 2

Interpretation: Respondents were asked to rank the major influencing factors that led them to purchase AquaSure Water Purifier in order to understand their priorities. With a weighted score of 226, it was found that Quality was the most influencing factors that led them to purchase the product followed by Brand Image (187), Salesman/Dealer Influence (115), Price (106) and Service (95).

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7.16 Influencing Factor Forbes Vacuum Cleaner

Table 7.16.1 Influencing Factor Forbes Vacuum Cleaner Salesman / Dealer Influence 0 3 0 6 7

Rank 1 2 3 4 5

Quality 9 7 0 0 0

Ease of Use 7 6 0 3 0

Price 0 0 1 7 8

Brand Image 0 0 15 0 1

Table 7.16.2 Influencing Factor Forbes Vacuum Cleaner (Ranking) Salesman/ Dealer Influence 31 4

Quality Weighted score Rank 73 1

Ease of Use 65 2

Price 25 5

Brand Image 46 3

Interpretation: Respondents were asked to rank the major influencing factors that led them to purchase Forbes Vacuum Cleaner in order to understand their priorities. With a weighted score of 73, it was found that Quality was the most influencing factors that led them to purchase the product followed by Ease of Use (65), Brand Image (46), Salesman/Dealer Influence (31) and Price (25).

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7.17 Programmes / Events

Table 7.17.1 Programmes/Events Water Testing Programmes 17 Road Shows 2

Exhibitions 7

Others 0

None 24

Water Testing Programmes

Exhibitions

Road Shows

Others

None

34% 48%

14% 4%

0%

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 ha vent come across any such programmes. 34% mentioned about water-testing programmes, 14% about exhibitions and another 4% about road-shows.

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7.18 Influence of programmes/events on purchase decision.

Table 7.18.1 Influence of programmes/events on purchase decision. Yes 21 No 6

Yes

No

22%

78%

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.

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7.19 Customer Retention

Table 7.19.1 Customer Retention

Yes 42 No 8

No 16%

Yes 84%

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.

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7.20 Product Acceptance

Table 7.20.1 Product Acceptance Yes 43 No 7

No 14%

Yes 86%

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.

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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) Sales Water Purifier June July Augus t 5 25 44 20 85 21 91 46 121

Dealer Name Kannankandy Sales Corporation, Calicut Nikshan Electronics, Kannur Nandilath G Mart, Thrissur

Date of Activity 22nd & 23rd June, 2012 3rd & 4th July, 2012 9th & 10th July, 2012

Before 5 20 85

After 34.5 33.5 106

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. 55

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) Sales Vacuum Cleaner June July Augus t 4 7 25 23 82 13 63 42 119

Dealer Name Kannankandy Sales Corporation, Calicut Nikshan Electronics, Kannur Nandilath G Mart, Thrissur

Date of Activity 22nd & 23rd June, 2012 3rd & 4th July, 2012 9th & 10th July, 2012

Before 4 23 82

After 16 27.5 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. 56

7.23 Hypothesis 3: H0: There is no significant relationship between the brand awareness and the residential location of the respondent. H1: There exists a significant relationship between the brand awareness and the residential location of the respondent.

Method used: Chi Square Test

Location and awareness

Valid N Percent Location & Awareness 100 100.0

Cases Missing N Percent 0 0.0%

Total N Percent 100 100.0

Location & Awareness Cross tabulation Count Awareness Yes No 19 6 17 2 41 15 77 23 Total 25 19 56 100

Location Total

Rural Semi-urban Urban

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Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 2.137a 2.429 .274 100 df 2 2 1 Asymp. Sig. (2-sided) .344 .297 .601

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 N Percent Age & Awareness 100 100.0% 0 Missing N Percent 0.0% Total N Percent 100 100.0%

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Age & Awareness Cross tabulation Count Awareness Yes No 14 5 18 1 15 15 30 2 77 23

Total 19 19 30 32 100

Age

<25 26-35 36-50 51< Total

Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 20.911
a

df 3 3 1

Asymp. Sig. (2sided) .000 .000 .484

21.568 .489 100

a.2 cells (25.0%) have expected count less than 5. The minimum expected count is 4.37.

Interpretation: Since value of Asymptotic significance is less than 0.05, H0 is rejected and H1 is accepted. This means that there exists a significant relationship between the brand awareness and the age group of the respondent.

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8. FINDINGS, SUGGESTIONS & CONCLUSION

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8.1 FINDINGS

The study conducted at Eureka Forbes Ltd, Dealer Division, Cochin on the effectiveness of promotional activities us reflects the following findings:

1. There is a significant number of households who use boiled water for drinking. This group considers boiling as a substitute for water purifiers. There is also a small proportion of households who use their drinking water directly. Both these groups represent untapped market for water purifier companies to explore.

2. The Brand name Eureka Forbes is highly popular among the public. A vast majority of the respondents were able to recall the brand name and when it comes to water purifiers and vacuum cleaners without any aid.

3. AquaSure water purifiers are more popular among people than Forbes Vacuum cleaners though both of them come from the same brand.

4. Traditional print media continuous to be the most effective medium for communication followed by word of mouth. Emerging media like social networking websites wasnt found to be very effective in this regard.

5. The frequency by which the company could reach the customers was found to be low.

6. When it comes to brand association, cleanliness, health and safety were the major aspects which people could relate to Eureka Forbes.

7. When it comes to competitors also, advertisement again was found to be the most popular form of promotion.

8. Eureka Forbes was found to be the most preferred brand when it comes to both water purifiers and vacuum cleaners. HUL, Kent (for water purifiers) and LG,

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Panasonic (for vacuum cleaners) were also not far behind when it comes to brand preference.

9. The option of online buying is not all preferred by most of the customers.

10. A good majority of consumers had prior knowledge of the products before coming to the shops to make the purchase. This indicates that customers actively engage in collecting information about the products and that the company was highly successful in delivering the required information.

11. Quality of the products is the paramount factor that led the customers to purchase Eureka Forbes products. Service was found to be the least influencing factor.

12. Water-Testing programmes were found to be an important event organized by the company which could attract good attention from the public followed by exhibitions. A considerable proportion of the population hasnt been part of any such programmes or events.

13. There is customer retention and product acceptance in case of Eureka Forbes customers are very high.

14. The promotional activities had a significant impact in generating sales of AquaSure water purifiers.

15. There hasnt been a significant impact of promotional activities in generating sales of Forbes Vacuum Cleaners.

16. There exists a significant relationship between the brand awareness and age group of the individual whereas no such significant relationship was found with the residential location of the individual.

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8.2 SUGGESTIONS

1. The company should concentrate its efforts to the section of population who use drinking water directly and by boiling and educate them about the advantages of using a water purifier.

2. The company should increase its promotional efforts in case of vacuum cleaners since the awareness level about vacuum cleaners was found to be low when compared to water purifiers. For some, the name Eureka Forbes is synonymous to water purifiers. Hence the promotion efforts should be channeled in such a way that the vacuum cleaner brand is not overshadowed by the water purifier brand.

3. The marketer can aggressively use social media as a means of interacting with the customers.

4. The concept of collaborative marketing can be explored using social media where customers along with marketing managers co-create ideas, news and technology at the same time consuming them. It is both an economical and efficient way of marketing.

5. The frequency of advertisements or other cost-effective promotional activities needs to be improved.

6. Affordability can be promoted more as a customer friendly aspect of Eureka Forbes products since it was ranked lowest by the respondents.

7. The marketer can popularize the idea of online purchase and the benefits associated with it. 8. Better responses to customers enquiries after the purchase has been made can change the perception about poor after sales service.

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9. Road Shows as a way of publicity can be explored more by the marketer since it is highly effective in grabbing public attention.

10. The company should try to identify areas which are pollution hotspots and make an attempt to educate the residents there at the same time promoting their products.

8.3 CONCLUSION

This study was undertaken in an attempt to understand the effectiveness of promotional activities undertaken by Eureka Forbes Limited, Retail Division, Cochin. The effectiveness of any promotional activity is a measure of the awareness generated among the public about the company and its products, the information it has been able to communicate, the sales that it has been able to generate, product acceptance, establishment a positive brand image, the number of customers retained and many more. Hence judging by the responses obtained from the customers as well as non-customers of Eureka Forbes Ltd, it can be concluded that the promotional activities had been highly effective in attaining its expected goals. This can be inferred from the high brand awareness, high acceptance and high retention of its products. Eureka Forbes has been highly successful in promoting itself as a company which is committed in providing happy, healthy, safe and pollution-free living conditions to all at the same time caring for the environment and the society around it. The study was able to reflect on high level of brand preference for Eureka Forbes products among the public. It could also recognize the importance of promotions like advertisements, water-testing programmes, exhibitions etc carried out by the company, its contribution to generating the desired awareness and at the same time generating sales. Advertising which is an integral form of promotion turns out to be the most effective media for communication. Quality is the paramount factor that entices the customer to choose Eureka Forbes products. A consistent customer oriented approach towards promotion strategy and adapting to the changing methods of communication can help Eureka Forbes Ltd maintain and capitalize on its existing competitive position.

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9. BIBLIOGRAPHY

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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_eurekaforbes-water-purification-new-product http://timesofindia.indiatimes.com/business/india-business/Competition-hots-up-inwater-purifier-business/articleshow/14659453.cms

3. Journals Eureka Forbes Limited Annual Reports 2010 2011

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10. APPENDIX

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10.1 PROMOTIONAL ACTIVITIES - CUSTOMER SURVEY (Use a tick mark to select the options) 1. Customer Details i. Name . ii. Location iii. Age group: iv. Gender : a) Rural b) Semi-Urban c) Urban d) 50 and above c) 2.5 4 d) 4 6.5 b) 26 35 c) 36-50

a) Less than 25 a) Male

b) Female a) less than 1 b)1 2.5

v. Income (in lakh per annum):

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 68 c)Exhibitions/Trade Shows

d) In-store Kiosks e) Company Website/Social media g) Others (Specify).

f) Field Demonstrations

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 e) Others. c) Exhibitions d) field Demonstrations

11. If given an opportunity to buy a water Purifier which brand would you prefer? (Rank your preference Eureka Forbes Godrej Bajaj Kent Hindustan Unilever Pureit Others Tata

12. If given an opportunity to buy a Vacuum Cleaner which brand would you prefer?(Rank your preference Eureka Forbes LG Inalsa 69 Panasonic Others

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 e) None c) Road Shows

d) Others (Specify)

18. If yes, have such programmes or events influenced your purchase decision? a) Yes b) No

19. Given your experience with Eureka Forbes, would you like to be a repeat customer if provided a chance? a) Yes b) No 70

20. Would you suggest an AquaSure Water purifier/Forbes Vacuum Cleaner to your friends or relatives? a) Yes b) No

21. Do you have any suggestions for improving the communication between the company and yourself? ....

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