Project Midhun 321checked
Project Midhun 321checked
INTRODUCTION
In today’s highly competitive market product quality plays a crucial role in shaping
consumer perception and fostering brand loyalty. Companies that consistently deliver high-
quality products gain customer trust, which translates into long-term loyalty and repeat
purchases. This study focuses on assessing the impact of product quality on brand loyalty in
the context of two major Indian conglomerates- Hindustan Unilever Limited (HUL) AND
Imperial Tobacco company (ITC)
HUL and ITC have established themselves as dominant players in the FMCG (Fast-
Moving Consumer Goods) sector, offering a wide range of products across personal care,
food, and household segments. While HUL is known for brands like Dove, Lux, Surf Excel,
and BrookeBond, ITC has gained prominence with brands such as Aashirvaad, Sunfeast,
Fiama, and Vivel. Understanding how product quality influence consumer loyalty towards
these companies is essential for marketers to develop effective strategies for customer
retention and competitive advantage.
This study aims to examine the correlation between product quality attributes-such
as reliability, effectiveness, packaging and ingredients- and brand loyalty factors like repeat
purchases, brand advocacy, and emotional attachment. By analyzing consumer preferences
and perceptions, this research will provide insights into how HUL and ITC can enhance their
product offerings to strengthen customer loyalty and sustain their market leadership.
Grocery products are a staple in every household, and consumers expect high
standards in terms of freshness, nutritional value, taste, packaging, and safety. The
following key aspects of product quality significantly impact brand loyalty in this segment:
1. FRESHNESS AND SHELF LIFE: Consumers prefer grocery products that maintain
freshness over time.
1
[Link] AND FLAVOR CONSISTENCY: Brands that offer a consistent taste
experience tend to retain loyal customers.
4. PACKAGING AND HYGIENE: Proper packaging that ensure product safety and ease
of storage influence purchasing decisions.
This study will examine how these product quality attribute influence consumer
perceptions and brand loyalty towards HUL and ITC grocery products.
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CHAPTER-2
Hindustan Unilever Limited (HUL) is an Indian Fast moving consumer goods company,
headquartered in Mumbai. It is a subsidiary of the Anglo-Dutch company Unilever. Its
products include foods, beverages, cleaning agents, personal care products and other
consumer staples
WEBSITE [Link]
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ESTABLISHMENT
VISION
MISSION
4
COMPANY PROFILE -ITC
ITC is the second-largest FMCG company in India and the third-largest tobacco
company in the world.
INDUSTRY Conglomerate
5
PRODUCTS Consumer goods, Hotels and resorts,
WEBSITE [Link]
ESTABLISHMENT
VISION
MISSION
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2.2 PRODUCT PROFILE
Acne-Squad
Active Wheel 2 in 1
Axe
Boost
Breeze
Bru
CLEAR
Cif
Clinic Plus
Closeup
Comfort
Cornetto
Dermalogic
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Dove
ELLE 18
Hamam
Pears
Pepsodent
Rexona
Rexona Deo
Rin
Simple
Sunlight
Sunsilk
Surf excel
TRESemm’e
VWash
Vaseline
Vim
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Hellmann’s
Horlicks
Horlicks Lite
Junior Horlicks
Indulekha
Kissan
Knorr
Kwality wall’s
LUX
Lakme
Lifebuoy
Lipton
Liril
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Magnum
Moti
Nature Protect
Novology
Pond’s
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Imperial Tobacco Company Product List:
Aashirvaad Vermicelli
Aashirvaad Rava
Aashirvaad Chapati
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Sunfeast Bounce Day and Night
Tricolor Pasta
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B Natural Cocount Water
Candyman Tadka
Candyman Toffichoo
Gumon Strawberry
Gumon Spearmint
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Sunbean Beaten Caffe
Sunfeast Fantastick 4D
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Vivel Lotus oil
Engage Intense
SAVLON Mask
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CHARIMS Face Wash
CLASSMATE Notebooks
Homelite Matchbox
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2.3 INDUSTRY PROFILE
Home Care (33.9% of net sales): This segment includes detergents, soaps, an household
cleaning agents under brands like Surf Excel, Rin, Wheel, and Vim.
Beauty and Personal Care (46% of net sales): Encompasses skin care, hair care, oral
care, and cosmetic products with brands such as Dove, Lux, Pond’s, Sunsilk, and Close
up.
Foods and Refreshment (18.8% of net sales): Offers culinary products, beverages, and
ice creams under brands like Knorr, Kissan, Lipton, Bru, and Kwality Wall’s.
Others (1.3% of net sales): Includes activities like exports and consignment.
Market Presence:
HUL maintains a dominant position in the Indian FMCG sector, with its products
reaching over 700 million consumers. The company operates 28 production sites across India,
contributing to 96% of its net sales.
Financial Performance:
As of February 1,2025, HUL’S stock price on the Bombay Stock Exchange was
Rs.2,507.10. The company has consistently maintained an average dividend yield of 1.75%
over the past five financial years.
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Recent Developments:
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IMPERIAL TOBACCO COMPANY;
Business Segments:
Cigarettes and Cigars: ITC is a leading player in the Indian tobacco market. India
reported a gross revenue of over 234 billion Indian rupees from cigarette segment in
fiscal year.
Incense Sticks and Safety Matches: Marketed under the Mangaldeep brand.
Hotels: ITC’S hospitality segment, which was demerged into a separate entity in January
2025, operates over 100 hotels across various brands, including ITC Hotels, Welcomhotel,
Fortune Hotels.
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Information Technology: Through its wholly-owned subsidiary, ITC Infotech, the company
provides digital solutions and services to clients worldwide.
Financial Performance
Sustainability Initiatives
The company has also created over 6 million sustainable livelihoods reflecting its
commitment to inclusive growth .
Market Presence
ITC’s products are available in over 6 million retail outlets across India, and the company
employs approximately 24,567 people across more than 60 locations nationwide.
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3.1 SCOPE OF THE STUDY
The study aims to assess the impact of product quality on brand loyalty concerning
grocery products from Hindustan Unilever Limited (HUL) and ITC. The scope of the study
covers the following key areas:
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3.2 OBJECTIVES OF THE STUDY
To compare the product quality strategies of HUL and ITC and their impact on consumer
retention.
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3.3 LIMITATION OF THE STUDY
Only limited samples of 100 respondents were taken its consideration due of time
constraint.
The study is confined to Dharmapuri town which may not fully represent consumer
behavior in other regions. Preferences and purchasing patterns may differ across urban,
semi-urban, and rural markets.
The respondents of the questionnaire are very busy and could not afford more time to
answer it, and lack of willingness to share opinions.
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CHAPTER-4
RESEARCH METHODOLOGY
Definition of Research
Research Methodology
Research design
“Research design is the plan, structure and strategy design of investigation conceived so
as to obtain answer to research question and to control variance.”
From definition it is evident that research design is more or less a blue print of research
at the outset may be noted that there are several ways studying and taking a problem. There
is no signal perfect design.
Descriptive research method is used in this because it includes surveys, facts, and
findings, enquire of different kinds. The main purpose of this study is to find description of
the state of affairs as it exists at present.
Sample design
A sample is a selection of units from the entire group called the population or universe
of interest. It refers to the technique or the procedure the researcher would adopt in selecting
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items for the sample. Sample design also leads to a procedure to tell the number of items to
be included in the sample i.e., the size of the sample.
Sampling techniques
A sampling technique is the name or other identification of the specific process by which
the entities of the sample have been selected. For the purpose of analysis, the data has been
collected from 100 customers from the selected sampled respondents in Dharmapuri town
area.
Sample size
Primary data
The primary data are those whiles are collected a fresh and for the first time and the
happen to be original.
Secondary data
The secondary data was collected published data (various publications) from website,
books and records maintained the organization
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Statistical tools applied
Likert scale
Actual Respondents
Total Respondents
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CHAPTER-5
1. Male 70 70
2. Female 30 30
GENDER
30%
Male
Female
70%
Interpretation:
From the above Pie chart, we see that 70% of the respondents are Male, while 30% are
female. This analysis shows that male respondents make up the majority at 70%.
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TABLE NO: 5.2
1. 18-25 24 24
2. 25-35 42 42
3. 35-35 30 30
4. Above 50 4 4
AGE
50
40
30
20 [Link] Respondents
10
0
18-25 25-35 35-50 Above 50
Interpretation:
From the above bar graph illustrates the distribution of respondents across different age
groups: 24% belong to the 18-25 age group, 42% to the 25-35 age group, 30% to the 35-50
age group, and 4% are above 50.
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TABLE NO: 5.3
1. Government employee 14 14
2. Private employee 36 36
3. Business 20 20
4. Others 30 30
OCCUPATION
14%
30% Government employee
Private employee
Business
36%
20% Others
Interpretation:
From the above pie chart, represents the occupational distribution of the respondents: 14%
are government employees, 36% are private employees, 20% are engaged in business, and
30% are involved in other activities.
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TABLE NO: 5.4
2. 2 lakhs-5 lakhs 48 48
3. 5 lakhs-8 lakhs 12 12
4. Above 8 lakhs 2 2
CHART 5.4
ANNUAL INCOME
2%
12%
Interpretation:
From the above pie chart, it represents the annual income of distribution of respondents:
38% earn less than 2 lakhs, 48% earn between 2-5 lakhs, 12% earn between 5-8 lakhs, and
2% earn above 8 lakhs.
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TABLE NO: 5.5
1. Schooling 26 26
2. Graduate 53 53
4. Illiterate 5 5
EDUCATION QUALIFICATION
5%
16% 26% Schooling
Graduate
Post Graduate and above
Illiterate
53%
Interpretation:
From the above pie chart represents the educational qualifications of the respondents:
26% have completed schooling, 53% are graduates, 16% have a postgraduate degree or
higher, and 5% are illiterate.
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TABLE NO: 5.6
Table showing common place where the respondents usually buy grocery products
1. Super Markets 85 85
3. Online Stores - -
4. Wholesale Markets 5 5
Chart showing common place where the respondents usually buy grocery products
100
85 85
80
60
40
20 10 10
5 5
0 0
0
SUPER MARKETS LOCAL GROCERY WHOLESALE ONLINE STORES
STORES MARKETS
Interpretation:
From the above bar graph, it represents the common places where respondents usually
purchase grocery products: 85% shop at supermarkets, 10% at local grocery markets, 0% at
online stores, and 5% at wholesale markets.
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TABLE NO: 5.7
Table showing the factors that influence purchase decision of the respondents
1. Product Quality 48 48
2. Product Price 6 6
3. Product Availability 8 8
4. Brand Reputation 38 38
Chart showing the factors that influence purchase decision of the respondents
Product Quality
38%
48% Product Price
Product Availability
8% Brand Reputation
6%
Interpretation:
From the above pie chart illustrates the factors influencing respondents purchase
decision: 48% prioritize product quality, 6% consider product price , 8% focus on product
availability, and 38% value brand reputation.
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TABLE NO: 5.8
3. Both Equally 40 40
4. Others 6 6
GROCERY BRAND
6%
Hindustan Unilever Company
Imperial Tobacco Company
40% 50%
Both Equally
Others
4%
Interpretation:
From the above pie chart illustrates the grocery brands most commonly purchased by
respondents: 50% prefer Hindustan Unilever Limited, 4% choose Imperial Tobacco
company,40% purchase both equally, and 6% opt for other brands.
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TABLE NO: 5.9
Table showing the duration of usage of HUL and ITC products of the respondents
2. 1-3 Years 10 10
3. 3-5 Years 6 6
Chart showing the duration of usage of HUL and ITC products of the respondents
DURATON OF USAGE
100
80
60
[Link] Respondents
40
Percentage
20
0
Less than 1 1-3 Years 3-5 Years More than 5
Year Years
Interpretation:
From the above bar graph illustrates the duration of usage of HUL and ITC products of
the respondents: 4% of them using less than 1 year, 10% of them using 3-5 years, 6% of them
using 3-5 years, and 80% of them using more than 5 years.
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TABLE NO: 5.10
Table showing the impact of product quality on brand loyalty of the respondents
1. Yes 96 96
2. No 4 4
Chart showing the impact of product quality on brand loyalty of the respondents
Yes
No
96%
Interpretation:
From the above pie chart illustrates the impact of product quality on brand loyalty
among respondents: 96% responded “Yes”, while 4% responded “No”.
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TABLE NO: 5.11
1. Excellent 12 12
2. Good 54 54
3. Average 34 34
4. Poor 0 0
Interpretation:
From the above bar graph illustrates respondents rating for the value for money of HUL
and ITC products: 12% rated them as Excellent, 54% as Good, 34% as Average, and 0% as
poor.
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TABLE NO: 5.12
Table showing the helpfulness and informative of product packaging and wrappers of
the respondents
1. Yes 90 90
2. No 10 10
Chart showing the helpfulness and informative of product packaging and wrappers of
the respondents
10%
Yes
No
90%
Interpretation:
From the above pie chart illustrates respondents opinions on the helpfulness and
informativeness of product packaging and wrappers: 90% responded “Yes”, while10%
responded “No”.
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TABLE NO: 5.13
1. Taste 18 18
2. Packaging 20 20
3. Freshness 40 40
4. Ingredients Used 22 22
Interpretation:
From the above bar graph highlights the key aspects of product quality considered by
respondents: 80% prioritize taste, 20% focus on packaging, 40% value freshness, and 22%
consider the ingredients used.
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TABLE NO: 5.14
Table showing the likelihood of using HUL and ITC products in the future of the
respondents
1. Definitely 59 59
2. Probably 30 30
3. Probably not 11 11
4. Definitely not 0 0
Chart showing the likelihood of using HUL and ITC products in the future of the
respondents
0%
LIKELIHOOD OF USING PRODUCTS
11%
30%
59%
Interpretation:
From the above pie chart, the likelihood of respondents using HUL and ITC products in
the future is as follows: 59% said definitely, 30% said probably, 11% said probably not and
0% said definitely not.
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TABLE NO: 5.15
Table showing suggesting the products to friends and family by the respondents
1. Definitely 28 28
2. Probably 60 60
3. Probably not 8 8
4. Definitely not 4 4
Chart showing suggesting the products to friends and family by the respondents
8%
28%
Definitely
Probably
Probably not
Interpretation:
From the above pie chart it represents the respondents likelihood of recommending the
products to friends and family as follows: 28% said definitely, 60% said probably,8% said
probably not and 4% said definitely not.
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TABLE NO: 5.16
Table assessing the quality of HUL and ITC products by the respondents
1. Excellent 18 18
2. Good 50 50
3. Average 32 32
4. Bad 0 0
Chart assessing the quality of HUL and ITC products by the respondents
50
40
30
No. of Respondents
20
10
0
Excellent Good Average Bad
Interpretation:
From the above bar graph illustrates respondents feedback on the quality of HUL and
ITC products: 18% rated the quality as Excellent, 50% as Good, 32% as Average, and 0% as
Bad.
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TABLE NO: 5.17
Table assessing the innovation of HUL and ITC products by the respondents
1. Extremely innovative 26 26
2. Very innovative 36 36
3. Somewhat innovative 26 26
4. Not innovative 12 12
Chart assessing the innovation of HUL and ITC products by the respondents
INNOVATION
12%
26% Extremely innovative
Very innovative
26%
Somewhat innovative
Not innovative
36%
Interpretation:
From the above pie chart it represents the innovation of HUL and ITC products: 26%
consider them Extremely Innovative, 36% saying Very Innovative, 26% of considering
Somewhat Innovative, and 12%Not Innovative.
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TABLE NO: 5.18
Table showing the satisfaction level of the respondents towards HUL products
1. Product 40 30 26 4 0 100
quality
2. Product 20 48 25 7 0 100
quantity
3. Product 44 25 23 8 0 100
availability
5. Product 20 45 20 15 0 100
innovation
6. Product 48 24 28 10 0 100
packaging
7. Product 7 40 35 10 8 100
price
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CHART NO: 5.18
48 45 48
40 44 44 40
35
3026 2624 28
25 2523 24
20 20 20
15
7 8 6 10 7 10 8
4
0 0 0 0 0 0
Interpretation:
From the bar graph represents respondents satisfaction levels with HUL company
products. According to the data, 40% of respondents are high satisfied with the product
quality, while 48% are satisfied with the product quantity. Additionally 44% are very
satisfied with product availability and 44% expressed high satisfaction with the ease of use.
Similarly 45% are satisfied with product innovation, while 48% are very satisfied with the
product packaging. Lastly 40% are satisfied with the product price.
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TABLE NO: 5.19
Table showing the satisfaction level of the respondents towards ITC products
1. Product 30 40 20 10 0 100
quality
2. Product 19 42 24 15 0 100
quantity
3. Product 43 33 15 9 0 100
availability
5. Product 42 28 15 8 7 100
innovation
6. Product 25 34 26 10 0 100
packaging
7. Product 20 43 17 8 12 100
price
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CHART NO: 5.19
Chart showing the satisfaction level of the respondents towards ITC products
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40 42 43 42 43
33 34
30 28
24 23 25 26
20 19 17 20 17
15 15 13 15 12
10 9 87 10 8
0 0 0 0 0
Interpretation:
The bar graph represents respondents' satisfaction levels with ITC company products.
According to the data, 40% of respondents are satisfied with the product quality, while 42%
are satisfied with the product quantity. Additionally, 43% are very satisfied with product
availability, and 47% expressed high satisfaction with the ease of use. Similarly, 42% are
very satisfied with product innovation, while 34% are satisfied with the product packaging.
Lastly, 43% are satisfied with product price.
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CHAPTER-6
6.1 FINDINGS
Majority 42% of respondents are comes under the age group 25-35 years the above
analysis concluding that the middle aged person are responded
Majority of the respondents are earning annual income of 2 lakhs-5 lakhs of 48%
48% of respondents say that product quality influences the purchase decision.
80% of respondents using HUL and ITC products more than 5 Years.
90% of respondents say that the information in packaging wrapper is helpful and
informative
40% of respondents feel freshness of the product most matters in product quality.
60% of respondents recommend the HUL and ITC products to their friends and family.
50% of respondents say the product quality of HUL and ITC products is good.
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36% of respondents say the HUL and ITC company products are very innovative.
Satisfaction levels with HUL company products. According to the data, 40% of
respondents are high satisfied with the product quality, while 48% are satisfied with the
product quantity. Additionally 44% are very satisfied with product availability and 44%
expressed high satisfaction with the ease of use. Similarly 45% are satisfied with product
innovation, while 48% are very satisfied with the product packaging. Lastly 40% are
satisfied with the product price.
The bar graph represents respondents' satisfaction levels with ITC company products.
According to the data, 40% of respondents are satisfied with the product quality, while
42% are satisfied with the product quantity. Additionally, 43% are very satisfied with
product availability, and 47% expressed high satisfaction with the ease of use. Similarly,
42% are very satisfied with product innovation, while 34% are satisfied with the product
packaging. Lastly, 43% are satisfied with product price.
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6.2 SUGGESTION
HUL and ITC should focus on maintaining and improving product quality to foster brand
loyalty.
Companies should invest in quality control measures to ensure consistency in product
quality.
Marketers should emphasize the quality aspect of their products in their marketing campaigns
to increase consumer awareness and perception.
Further research should be conducted to explore the relationship between product quality and
brand loyalty in other regions and product categories.
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6.3 CONCLUSION
Assessing the impact of product quality is crucial in building brand loyalty for HUL and ITC
grocery products. High-quality products enhance customer satisfaction, leading to repeat
purchases and positive word-of-mouth. Consumers associate consistent quality with
reliability and trust, strengthening their emotional connection to the brand.
For HUL and ITC, maintaining superior product standards, ensuring hygiene, and adapting
to consumer preferences can significantly influence customer retention. Moreover, in a
competitive grocery market, product quality acts as a key differentiator, helping these brands
sustain long-term loyalty and market leadership. Therefore, continuous quality assessment
and improvement are essential strategies for fostering brand trust and loyalty.
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BIBLIOGRAPHY
Amstrong, G.,A & Kotler, p, (2020), Principles of Marketing (18th ed) Pearson.
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WEBLIOGRAPHY
[Link]
[Link]
[Link]
[Link]
[Link]
[Link]
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A STUDY ON ASSESSING THE IMPACT OF PRODUCT QUALITY
ON BRAND LOYALTY HUL AND ITC GROCERY PRODUCTS IN
DHARMAPURI TOWN
QUESTIONNAIRE
1. Name
2. Gender
a) Male b) Female
3. Age
a) 18-25 b) 25-35
c) 35-50 d) Above 50
4. Occupation
c) Business d) Others
5. Annual income
6. Education qualification
a) Schooling b) Graduate
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8. What factors influence your purchase decision the most ?
10. How long who have been using the HUL and ITC products ?
a) Yes b) No
12. How would you rate the value for the money of the HUL and ITC companies product ?
a) Excellent b) Good
c) Average d) Poor
13. Is the information provided in the products packaging wrapper is helpful and
informative ?
a) Yes b) No
a) Taste b) Packaging
15. Are you likely to use HUL and ITC products in the future ?
a) Definitely b) Probably
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16. Would you suggest HUL and ITC products to your friends and family?
a) Definitely b) Probably
17. How do you assess the quality of the HUL and ITC products ?
a) Excellent b) Good
c) Average d) Bad
18. How would you assess the innovation of HUL and ITC products ?
Product
Quality
Product
Quantity
Product
Availiability
Ease of
Use
Product
Innovation
Product
Packaging
Product
Price
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20. What is the level of satisfication with ITC products ?
Product
Quality
Product
Quantity
Product
Availiability
Ease of
Use
Product
Innovation
Product
Packaging
Product
Price
57