A STUDY ON MARKETING
STRATEGIES OF DIFFERENT PRODUCT
OF HUL LTD
SUBMITTED BY:
SUSHIL KUMAR
Roll No. 1337770108
MBA III Sem
DECLARATION
I Susuhil Kumar Student of MBA IIIrd SEM hereby declare that this
research report is an original work done by me independently and or
any part of this work has not been published for the award of any
other Degree or Diploma.
Project I herby that the report titled A study on marketing
strategies of different Products of HUL Ltd is the requirement of
the M.B.A. III Sem Mr. Praveen Malik, H.O.D., of Management,
GBIT, Meerut is my own efforts information furnished in this
research report, is true to the best of my knowledge.
SUSHIL KUMAR
Roll No. 1337770108
MBA III Sem
ACKNOWLEDGEMENT
In the process of completing this project Marketing Strategy of HUL. I
have received cooperation from many quarters.
I express my sincere gratitude and indebtness to Mr. Praveen Malik,
H.O.D., of Management, GBIT, Meerut , for giving me an opportunity to
SUSHIL KUMAR
Roll No. 1337770108
MBA III Sem
EXECUTIVE SUMMARY
3
The objective of the project was to enhance the sales & distribution of HUL
Personal Care products in the territory of Ghaziabad.
To achieve the objective, market visits were arranged on daily basis. In first stage of
the training the market visits were done with the Dealers Salesman (DS) in various
markets in order to gain an understanding of how to capture orders and delivery
processes to the various outlets which come under the respective beat plan of
Wholesale Distributor (W.D).
The second stage involved the visits to the Premium Grocery and Chemist (PG&C)
Outlets with the Territory Sales Incharge (TSI) in order to know the merchandising
solutions adopted by HUL. With the help of these visits the problems faced by the
Retailers and the Wholesalers were find out. The various features of HUL products
and their Unique Selling Proposition vis--vis competitors products were gained and
used these for effective sell-in. The report contains the findings based on the market
study and the recommendations given to enhance the sales and penetration of the
HUL Personal Care Products.
PREFACE
PREFACE
Gone are those days, when few companies used to enjoy in one business or the others
and the employees of such companies used to enjoy heavy dividends even for their
miniscule efforts. But at the face of Globalization Technological Advancement and
the easy access to information through different Media, todays markets are trains
forming at an incredible pace.
The situation a kin to the FMCG is not an exception. The endless list of substitutes,
competitive prices, rival connivances advertisement and the readily available services
at the door steps leave the consumers in a commendable position, from where they
can dictate the terms and choose what the Best is.
For an established name like Hindustan Lever Ltd. one of the most important
objectives is to get the feedback of their product line and services in order to gauge
the level satisfaction among consumers / customers. Another important objective for
an established firm is to protect its market share and increase it with time.
CONTENTS
1.
Introduction.. 8
2.
Objective....10
3.
Methodology..12
4.
5.
6.
Personal Products 33
7.
8.
Financial News.58
9.
Press Releases..62
10.
SWOT Analysis71
11.
Limitation..79
12.
13.
Conclusion.84
14.
Bibliography..87
15.
Questionnaire.....92
16.
Annexure...94
INTRODUCTION
INTRODUCTION
The Company being selected for study under this project report is Hindustan Unilever
Ltd; The number one FMCG in India. It can be said beyond any doubt that HUL is an
undisputed leader in FMCG products in urban as well as rural area. HUL caters to 850
million people in India which becomes 85% approx. of the total population. Hence the
study of HUL can give us a wide knowledge in the fields like successful
implementations of marketing strategy in urban and rural India cutting across so many
7 cultural, social, regional, religious, linguistic barriers.
Hindustan unilever Limited (HUL) is India's largest fast moving consumer goods
company. It is a leading player in home and personal care products, foods and
beverages, and speciality chemicals.
What differentiates HUL?
The product portfolio with its wide range of products sets HUL apart! It has achieved
market leadership in soaps and detergents (Surf) as well as hair and skin care products
(Sun Silk, Dove, Hamam). It is the second largest manufacturer of dental care
products (Close-up, Pepsodent). HUL is also market leader in tea (Taj), processed
coffee (Bru), ice cream (Kwality-Walls), tomato-based products (Kissan), jams and
squashes (Kissan), and branded staples (Kissan Annapurna).
The leading business magazine, Forbes Global, has placed Hindustan unilever at the
top among the best consumer (household) products companies worldwide for the
current year.
With a plethora of brands, Communication becomes imperative.
Every company has to communicate the presence of its products to capture a large
market share. How does a company do that? There are many tools that a marketer can
use: advertising, hoardings, radio, television and internet ads! Whats missing is the
freebie! Is sales promotion only made up of atta free with soap?
Objective
OBJECTIVE
10
11
RESEARCH METHODOLOGY
Research methodology is a systematic way. Which consists of series of section or step
necessary to effectively carry out research and the desired sequencing of these steps
the marketing research is a process of involves a number of inter related activates
which overlap and do rigidly follow a particular sequence. It consists of the following
step.
1. Formulating the objective of the study.
2. Designing the method of data collection.
3. Selecting the sample plan.
4. Collecting the data.
5. Processing and analyzing the data.
6. Reporting the finding,
Research Design
The research design is the basic framework which provides guidelines for the research
process. It is a map according to which the research is to be conducted. The research
design specifies the methods for data collection and data analysis.
After having discussed the HUL (Hindustan Liver Limited) detergent market and its
competitor in general, the present chapter Research Design has proposed to high
light the objectives, hypothesis, data collection, sampling arid measurement
techniques etc.
Data Collection Method
The date use is secondary data in nature. The secpmdaru data was collected from various
internet sites, books, and magazines. .
Sampling Method
12
The sample for the survey was selected at random. For this, the surveyor attempted to
get the information from respondents. Respondents were interviewed at exploratory
from the sites chosen.
Analysis Method
Prior to collection of the data or actual field work a pilot study was conducted in order to
analyze the degree of proper framing of the secondary data. The dummy data so
collected was used to develop an idea regarding specific information that is required to
carry out the actual research.
Collection Of Data
The following techniques were adopted for date collection.
The data collection phase of marketing research is generally the most expensive and
the most prove to error. In case of surveys, four major problem arise. Some
respondents did not use a particular detergent and must be reconnected or replaced.
Other respondent will refuse to cooperate still other will gave biased or dishonest
answer. As the study could not be conducted at the national level with in the specified
time. This study reties itself to the Ghaziabad region which divided into four clusters:
Shahibad, Rajnagar, Old Ghaziabad, New Ghaziabad,
SECONDARY DATA Primary data was collected through web site, books, and
magazines.
13
14
ADVERTISING
STRATEGY
credibility by helping your target group understand you better. Familiarity in this case
normally improves acceptability of who you are and what you are doing. Ignorance,
on the other hand, can lead to mistrust, or even contempt in some situations.
Corporate image is built through more than one strategic means, and often a
combination of activities. For instance1.
2.
3.
4.
5.
16
Good corporate image can be built if you treat it like one of the Ps of marketing the
fifth P stands for Performance professional corporate performance, doing it the
right way the first time. Its in this regard that creativity in PR comes to have a lions
share in the entire process of corporate image building.
Creativity in PR means more than just pretty pictures and good copy. It is building
image with activities, which generate all-round impact and visibility for the company.
What and How is the task here. Creative corporate advertising, is one route.
With respect to positioning similarly, the image communication and image building
activity must to able to find a right niche in the minds of the target group. The quality
of the message, and activity, is vital for this.
Companies which benefit most from corporate image are those who take a long-term
view and commitment towards communication and the image of their organisation
through it. HUL can be presented as a striking instance of it.
Image and Identity
There may be nothing new in saying that the corporate image is in the eye and the
mind of the receiver.
17
Even a particular character of an opera becomes very popular as the opera becomes
very popular. Hence building such character, which would personify the brand and
both the character as well as the brand would grow in due course of time. However
even if time constraint is removed, course content constraint comes in. But the scope
of story telling is far greater. Attention grabbing will be replaced with attract attention
and no zipping/zapping problem. Audience will be more receptive and comprehension
of course would be dependent upon how it is executed. Practicability of the idea
would be tested when it will be implemented. Hence unless it is tried and tested it can
be concluded that whether it will click or not. Let's take the example of Coca-Cola,
the scriptwriter would be creating situation in each episode of a family soap where
there would be opportunity to celebrate and drink coke! To give another example, a
multi utility vehicle with safe driving positioning plank could have exploited the plot
of the recent movie "Road".
If this concept clicks, there would be nothing like it for advertisers. If it happens, in
future big advertisers like HUL would be diversifying to entertainment business! Of
course the ad budget of HUL is far bigger than the total budget of many entertainment
houses.
Irrespective of whatever positive points or negative points it has, this concept can be
tried for programmes aired in pay channels simply because there is no other
alternative to advertise during the programme. Besides it is expected to solve the other
problems those are discussed above. Advertisement would be no more the
troublemaker and irritating. Hence catching attention would be much easier. Only
testing of this idea could help us to conclude whether to roll out from the concept
from programmes of pay channels to programmes of free channels.
Advertising
DOING BUSINESS WITHOUT ADVERTISING IS LIKE WINKING AT A GIRL
IN THE DARK; YOU KNOW WHAT YOU ARE DOING, BUT NOBODY ARE
DOES
According to the American Marketing Association, Chicago adverting is any paid
form of non personal presentation of ideas, goods and services by an identified
spoor.
19
2.
Concept Testing Once the new concept has been thought of, it goes into
qualitative research. This qualitative research primarily focuses on testing the
acceptance of the concept by the target segment as well as the evolving of an
appropriate positioning plank. The positioning could be attribute, cost or
benefit based. Based on consumer feedback, an appropriate positioning
platform is determined.
3.
Agency Brief Once the concept testing is successfully complete, the Brand
Manager prepares a brand positioning statement. This is a description of the
brand and includes the product description, likely brand name, category,
name, variants (if any) and key brand benefits (sensory, functional and
20
emotional). An agency brief is then prepared for the Agency, which includes
the BPS as well as answers to the following questions:
4.
Animating Testing: The storyboard is developed by the agency. After this has
been approved by the client, the animatics go into testing. These are
advertisements made from frame-by-frame shots of the storyboard with
appropriate music/dialogue/voice over. This is more economical when
compared to shooting the actual advertisement. The animatics are shown to
the sample audience for feedback and frame-by-frame analysis. The name,
product design, ambience, music and overall purchase intention after viewing
the advertisement are measured. Brand personification may be included. If
the results are positive, the advertising concept is frozen.
5.
Media Brief This is given to the media planner and is similar to the agency
brief. However, it includes media vehicles desired required awareness,
frequency (number of exposures) and reach (% target segment who should
view it).
6.
PUBLIC RELATION
Public relations practice is the deliberate planned and sustained effort to establish
and maintain mutual understanding between the organisation and its publics.
By :- Institute of Public Relation (British) 1948.
To understand the definition better it in important to know as to who does the word
publics refer to.
Public are 21
: Shareholder
: Customers
: Employees
: Trade Unions
Public Relations
Here we try to identity the distinguishing factors between Advertising and public
relations:
Advertising is a commercial persuasive activity aimed at promoting a particular idea
or a viewpoint product, or service, institution and so on through the mass media.
As refined by the British Institution & Practitioners of Advertising:ADVERTISING presents the most persuasive possible selling message to the light
prospects for the product or service at the lowest possible cost on the other hand .
Public Relations demands more time and effort than advertising because advertising is
limited to special selling and buying tasks.
22
To
continue the analogy, PR seeks to diagnose the ills of an organisation in its relations
with the public or any segment of the public, it prescribes remedies and proceeds to
administer them. It then keeps a watch on the patient to see whether the remedies
prescribed are producing the desired effect so that the medicine can be changed if
necessary after evaluating the results. Again, as in medicine prevention is considered
more important than the cure, PR believes in maintaining the good health of the
corporate body -so that drastic remedies and bitter pills may not have to be swallowed
later.
23
Analogies may be useful in giving a general idea but can never be as precise as a
definition.
defined so that we may be clear about what we are discussing when we talk about PR.
It is the attempt by information, persuasion and adjustment to engineer public
support for an activity, cause movement or institution.
applied social and behavioral science is that function which - measures, evaluates and
interprets the attitudes objectives for increasing public understanding and acceptance
of the organizations products, plans, policies and personnel; equates these objectives
with the interests, needs and goals of the various relevant publics; and develops,
executes and evaluates a programme to earn public understanding and acceptance.
AN OVERVIEW
Public relations today is still a very underdeveloped field.
It is growing in
prominence and has started showing results in various sectors of corporate India.
More and more companies are making use of PR to solve their problems and increase
their overall corporate equity. The entire process needs a closer look.
To gauge the effectiveness of PR in HUL over the last decade it is necessary to
examine its function and overall areas of applicability.
Social Responsibility of Business and Introduction
The need for PR arises also from the responsibility that an organisation owes to the
society, which nurtures it and enables it to function and operate. No organisation,
leave aside a modern business organisation, can function in a vacuum. It flourishes
only because a particular kind of social environment exists. This environment is often
taken for granted but in times of social turmoil when normal conditions are disrupted
the dependence of the organisation on the social environment is brought home
sharply. How often have we not seen during periods of national strife or serious
political instability leading to a break down of law and order that business comes to a
standstill? While these may be extreme examples they illustrate the fact that without
the right social environment no business can exist. Thus every business organisation
has a stake in the social environment and must contribute its mite towards its
continued existence and improvement.
A business organisations responsibilities to society cover a wide area. They range
from its responsibility to supply quality products at a reasonable price and to ensure
24
that it reaches the consumer at the right time and place to its responsibility to
contribute to the development of the Infrastructure, to the realization of national
objectives and to the identification of its interest with the vast population of the
country in which it operates. The world over business organisation which are forward
looking and farsighted are trying to make a contribution to social causes apart from
achieving their immediate and ultimate ends of producing goods for sale and
marketing them at a profit. Such contributions can range from grants to universities,
scholarships of various kinds, aid to hospitals and charitable institutions to actual
involvement in projects of social significance. An organisation in the USA sponsored
a research fellowship to discuss the causes of student unrest and to find solutions to
the problems of tension in the campuses.
organizations, which are aware of their social responsibility and have made an effort
to discharge it in accordance with their resources and the needs of the situation.
Studies on the extent of industrial pollution and ways and means of combating it,
Involvement in family planning programmes, development of low cost nutritious food
for the poorer sections of the people, studies on the causes of a States decline and the
steps needed to restore it to health are some examples of social responsibility in
corporate behaviour as practiced in India in recent years. But there is little doubt that
instances of such conduct are few indeed in relation to the enormity of the problems
facing a country as vast as India with a burgeoning population a large part of it living
below the poverty line.
PR and Environmental Path of HUL
The present generation has, quite understandably, made the environment a focus of
attention. With growing environmental awareness, there is now a clear perception that
our activities affect not only the air we breathe, but even the air which regulates our
climate. More importantly, uncontrolled activities cannot be sustained without loss of
plant and species, natural habitats, coast and hinterland and the decay of buildings,
places of natural beauty or historic interest. Hence, the need for a genuine
commitment to sustainable development which is integrated with the national policy
on industry, energy, transport, trading and planning.
In the above context, public relations professionals are well placed to direct attention
to environmental issues and can make a unique contribution to public and professional
debate, and to environmental education. In fact PR has to live up to its environment
25
26
It is true that corporate image concerns the industrial marketer directly as brand image
is crucial for the consumer market. The ordinary consumers, while oblivious of the
name of the manufacturer, can easily identify the brands of consumer products.
Repeat this test for industrial goods : the same respondents are aware of the name of
the manufacturers but many wont be able to name the industrial products.
Interestingly, a third set of organisation would be known both for their industrial or
consumer products as well as for their distinct corporate image. Where does corporate
PR stand in these diverse settings? Although easier desired than achieved, PR
attempts to create the desired image by its involvement in all the factors of corporate
identification programmes.
GOVERNMENT RELATIONS
A government relation has two facets to it. Firstly, the PR for the government (as an
organisation) and Secondly, PR with the governments as the target group. Both are
important and very needed by corporations.
Public relations for the government involves mobilising public support for
governments activity, for instance, family planing, control, environmental protection,
beautification of cites, etc. the company generally sponsors some of these activities by
providing monetary help or other resources. The basic objective of the company is to
build relations with the governments, and also help for the good of the community of
society.
Public relations with the government involves keeping the governmentpoliticians
and bureaucratson your side.
government, which will be of benefit to the company in its overall business plans and
operations. Public relations with the government in some ways is quite difficult and
demanding.
27
The government should not be looked at as an adversary. In fact, you should make all
efforts to help the government and support its activities and policies as far as possible.
Government leaders must be kept informed from your side about the organisations
activities and policiesespecially those which are contributing to the welfare and
development of the state or the nation. Such relations will be mutually beneficial in
the short-term and the long-term.
MEDIA RELATIONS
Media relations Is a vital tool in PR. A large amount of communications and PR are
conducted through the mediaespecially the Press. When a company gets media
coverage, it is not always flattering. Business is always vulnerable to attacks by the
media. Media can often aggravate problemsespecially crises. As in the case of
Union Carbide and HUL a few years ago. Hence, media, particularly the Press has to
be handled very carefully. The media must be kept on your side. All efforts must be
made to ensure this strategically. It takes years to build a good image, but to destroy
it you need just a few bad reports in the media.
It is important to build a working rapport with the media. You cannot afford
unnecessary reactions and distortions. If you do go to the media then always go with
a strategybe selective in the choice of media, use only influential media (especially
publications in the Press), do not spread your communication too thin, go for quality
rather than quantity. Selective and in-depth coverage is what you must aim at, as it is
more effective and produces the desired results. let your communication be complete
honest, and backed with hard facts. The organisation must be able to live up to its
claims and promises in media, otherwise you can be in for further problems. The
efforts made by HUL in this respect have been orchestrated well to build image as
well as to counter negative publicity.
FINANCIAL RELATIONS
With the growth of the Indian economy and the business sector, management of
financial promotions and PR has taken on a new dimension. HUL is making special
efforts to ensure the goodwill of their shareholders, investors, financial institutions,
28
and the rest of the financial community. This is being done in the mass media and
specialised media ranging from annual reports to special brochures to audio-visuals,
video films, and even corporate advertising in the Press and television.
The main target group of a company in financial PR is its shareholders and potential
investors. They have to be given information they are entitled to have, and they have
to be kept interested in the company. Public relations must establish, maintain, and
improve the companys image and reputation so that it can obtain funds from the
public and the financial institutions on the most favorable terms when it desires so
The financial and business Press, today, is very important in achieving this objective,
The importance of financial PR and the need for it is seen from the number and
growth of PR agencies specialising in financial promotion, advertising and PR
management in India. These include well-known names like Pressman, Clea, and
Sobhagya, now a host of others. They provide their clients a wide range of services
and expertise in PR and advertising.
CUSTOMER RELATIONS
In the past PR and marketing were considered separate and unconnected activities of
business in a company. Today, PR has a role to play in marketing not only to build
image, but to also help solve problems concerning a companys products
Or services among consumers or other special groups, and generally protecting the
companys reputation at the marketplace. Public relations with customers, and with
suppliers, in industrial products/services marketing at the institutional level is gaining
more and more importance today.
In todays competitive market customers opt for products that are known and have an
image, and are backed by quality and good after sales service. Marketing people
cannot ignore public opinion on such aspects. In the long run, unfavorable opinions
certainly affect sales. Public relations can help in controlling and setting right some
of these opinions; it is therefore essential for companies to assign some of their
attention and resources to develop PR in marketing.
COMMUNITY RELATIONS
29
Today, the relationship between corporations and the community is a vital issue in
management of business organisations. It is acknowledged that business is no longer
done for the sake of profits alone. Because a company functions within a community,
its responsibility extends to giving back to the community something for what it
makes from it. This has been the philosophy of the Tatas in India for years, today it
is accepted and is being followed by a number of other companies. This belief is now
also considered important and crucial by the government, consumerists and opinion
leaders.
Company relations at an organisation can vary from local community welfare
activities, to large-scale sustainable development programmes for the betterment of
lives of people. Companies have to consider the community as one of its prime target
groups. The objective of PR is to help build image of the company: as a good
corporate Citizen, a good company to do business with, and a good company to work
for.
EMPLOYEE RELATIONS
In employee relations, communicators are vital at every level. From top to bottom,
also from lower level to the top management level, and even the horizontal
communications among colleagues at the same level and between functions. The
basic function of communications and PR in the organisation is not just better
functioning, but a fostering of goodwill, trust, and togetherness among employees.
Employee in HUL one in a large number and they include both blue collar to white
collar. Internal PR must reach out to all of them. This makes the task tough and
critical, requiring much thinking and planning. Before planning PR programmes,
therefore, it is important to first assess the needs and requirements of employees. One
of the major goals of PR is to foster the participation of employees in decisionmaking, for this PR programmes must be evolved around their motivations, job
enrichment, training and development, working environment, productivity, and
overall growth in the company. This, in other words, means PR for better employees,
better employee morale, and better relationships, resulting in success and growth of
the organisation; and therefore, a better image and reputation for it.
30
In the case of PR with employee, the function may seen to overlap with the working
of the companys personnel department. In practice, however, it is necessary that the
two departments work closely together. They can mutually reinforce each other,
especially in areas like HRD. It is worth trying to integrate HRD with PR, if possible,
in a company. More so when with the growth of organisations in size, the individual
employee is becoming smaller and less significant, and thus losing his or her identity.
Public relations with HRD can play a crucial role in building and motivating the
employees on their jobs and in their contributing towards achieving the company
goals.
INDUSTRIAL RELATIONS
This is another important area of work for PR executives. Its importance is growing,
with staff and workers getting to be united, more enlightened and demanding.
Whether they are unionized or not does not make a difference in the PR work, in
either case, good relations have to be maintained.
important to realize that unions have their own goals. This makes it more difficult to
deal with them in many respects. Understanding these goals, and how they will affect
Industrial relations and PR efforts, is the first priority in dealing with unions.
Industrial relations concern the staff and workers in their relationship, as individuals
and as a group, with the management. Industrial relations are most often concerned
with problems related to wages, other monetary benefits, conditions of work.
31
PERSONAL PRODUCTS
32
Lovely Fairness Reviving Lotion, Fair & Lovely Fairness Cold Cream and Fair &
Lovely Fairness Soap.
2.
Ponds
3.
Close-Up, the youth brand, was the first gel toothpaste to be launched in India in 1975
and has remained the category leader ever since. The brand arose out of a universal
need for confidence in a social situation, starting with fresh breath.
In 2002, Close Up was relaunched in two variants - Close-Up Tingly Red and
Close-Up Eucalyptus Waves. Close-Up Tingly Red and Close-Up Eucalyptus
Waves with their superior formulation provide superior cleaning, enhanced flavour
and a freshness that extends from nose to throat. The communication for Close-Up
focuses on the base line, Jee Ke Dekho Yaar, which encourages young people to go
out and get a life!
The new flavours are in line with HULs endeavour to continuously innovate and offer
new advanced products to the consumers. These flavours have been specially
designed to win over competition consumers.
Recently, Close-Up Whitening, the tooth-whitening variant, was introduced with a
unique self check device called shade card. This helps consumers identify how
35
yellow their teeth really are and also to track the improvement in teeth colour as
they use the paste. The toothpaste helps teeth get whiter in 4 week of regular use.
4. Hair Care Product :
Sunsilk
Sunsilk was extended to hair colourants in June 2001. The colourants are available in
7 variants that are specially suited to Indian hair and skin tones and colour hair gently
and safely.
Clinic - for healthy hair
Clinic Plus shampoo was launched in India in the year 1987 and is positioned as the
'shampoo that makes your family's hair healthy and glowing.' Clinic Plus is targeted at
mothers, educated yet measuring their self-esteem through their children's
achievements.
In the year 1996, Hindustan unilever launched another variant of Clinic shampoo Clinic All Clear dandruff shampoo. The core proposition of Clinic All Clear is that it
is "the only shampoo that gives you dandruff-free soft hair." It is targeted at the
appearance conscious young adult, seeking dandruff-free, gorgeous hair to create a
positive impression.
5.
Deodorants
37
Axe, the deodorant that is considered cool, fashionable and stylish by young men was
launched in India in 1999. Available in more than 60 countries around the world, it is
a world leader in male toiletries.
Axe has a mix that is completely harmonised globally - from its proposition and
communication to the product, as available on the shelf.
Axe is available in four fragrances: Java, Alaska, Atlantis and Voodoo. Voodoo has
become the leading male deodorant brand in India within just one and a half years
from its launch.
Consumers associate a lifestyle of cool clubs, cool music, and cool fashion with Axe.
The youth view it as an icon which introduces many 'firsts' to their world of music
and dance - like the first "World's Longest Dance Party" and the first ever Axe
Voodoo Island Party.
6.
Colour Cosmestics
38
Beauty and fashion is not only about looking good but also feeling great, which is
reflected in the advertising line for Lakme, On Top Of the World'
Fabric Wash
Surf - Mummy's best friend
Launched in 1959, Surf was the first in the Indian detergent powder market. Over the
years, Surf has anticipated the changing washing needs of the Indian homemaker and
constantly upgraded itself.
Surf Excel, India's largest selling compact detergent powder, in its newest avatar
promises to tackle the toughest stains without damaging the color of the fabric. This is
because only Surf Excel has smart sensors that can differentiate stains from colors.
Now you don't have to worry about tackling the really tough stains, especially on your
colored clothes anymore. Surf Excel Hai Na!
For those who seek the Surf Excel clean in the front loaders, the specially designed
low suds formulation Surf Excelmatic promises to give just that - a superlative clean.
Those preferring the modern and convenient way to wash can rely on Surf Excel
Liquid. The liquid form penetrates deep allowing great wash results. For the really
39
tough stains, you can apply the liquid directly on the body of stain (through a stain
treater) - you will see tough stains being tackled with ease.
With
years
of
laundry
expertise,
Surf
Excel
now
has
Careline,
Wheel
Personal Wash
Lifebuoy
Lifebuoy Family health protection for my family and me
Worlds largest selling soap offers a stronger health benefit to the entire family
Launched in the year 1895, Lifebuoy, for over a 100 years, has been synonymous with
health and value. The brick red soap, with its perfume and popular Lifebuoy jingle
40
have carried the Lifebuoy message of health across the length and breadth of the
country, making it the largest selling soap brand in the world.
In 2002 Lifebuoy was relaunced, marking a new turning point in its history. The new
mix includes a new formulation and a repositioning of the brand to make it more
relevant to both new and existing consumers.
Lifebuoy is no longer a carbolic soap with cresylic perfume. It is now a milled toilet
soap with a new health fragrance. The new formulation has an ingredient, Active-B,
which offers protection against germs, which can cause stomach infection, eye
infection and infections in cuts and bruises. The new health perfume has been selected
after one of the most extensive perfume hunts in the industry. The new milled
formulation offers a significantly superior bathing experience and skin feel. The new
formulation, new health perfume and superior skin feel, along with the popular red
colour, have registered conclusive and clear preference among existing and new users.
The new Lifebuoy is targeted at todays discerning housewife with a more inclusive
family health protection for my family and me positioning. Lifebuoy has made a
deliberate shift from the male, victorious concept of health to a warmer, more
versatile, more responsible benefit of health for the entire family.
The new Lifebuoy range now includes Lifebuoy Active Red (125gm, 100 gm and 60
gm) and Lifebuoy Active Orange (100gm). Lifebuoy Active Orange offers the
consumer a differentiated health perfume while offering the health benefit of
Lifebuoy.
At the upper end of the market, Lifebuoy offers specific health benefits through
Lifebuoy International (Plus and Gold). Lifebuoy International Plus offers protection
against germs, which cause body odour, while Lifebuoy International Gold helps
protect against germs, which cause skin blemishes.
Lux
Lux - the film stars' choice
Endorsed by popular film stars, Lux is one of the biggest brands in the soap category.
Lux was launched in India in the year 1905.
41
Lux comes in 3 attractive variants - Lux Pink is a fragrant ensemble of almond oil,
Lux White a rich creation of milk cream and Lux Black (in a pastel shade of lemon
yellow) overflows with the goodness of honey, and is also the first of its kind in the
market.
The new, exotic addition includes International Lux Skin Care 'Sunscreen Formula'. A
unique soap, which protects the skin's fairness against darkening by the sun. The
product contains a combination of sunscreen actives, which are deposited on the skin
as a protective layer, even as the soap washes away dirt and grime. This breakthrough,
for the first time in the world, is the result of technology patented by HUL.
In short, Lux has worked its charm on millions of women, making their dreams of
beauty come true.
Breeze
Breeze - makes dreams a reality
Launched in 1991, Breeze is a mass-market soap that sells in the economy segment.
The fragrant ensemble from Breeze comprises 3 variants, which contain the real
goodness of natural ingredients such as rose water, sandal extracts and lime extracts,
giving skin a glowing radiance.
Originally launched in 1989, Breeze is today perceived to be a good value for money
brand - with outstanding sensory experience. Its strengths are its fragrance, lather and
the soft feeling it has on the skin. A new variant, a hair-and-body soap, Breeze 2-in-1,
was launched in January 2001. Enriched with coconut oil and lime extracts, it was the
very first of its kind and leaves the consumer looking and feeling beautiful.
42
The brand plays a critical role in its consumer's life, because Breeze for her is more
than just soap. It is, in fact, her beauty aid, her only cosmetic, and one that she can
afford. She regards Breeze as her only way of fulfilling her dream of looking
beautiful.
3.
Household Care
Vim
Vim is the market leader in the dishwash category. Today Vim is available in powder,
bar and liquid form. Vim continuously strives to innovate its products to enhance the
lives of its consumers. Whether it be through its new 'Stain Cutter' formula in its Vim
Bar or it's the stain busters in its powders, Vim stands for the best quality in dishwash
products.
44
FOODS
AND BEVERAGES
Ice Creams
45
Cornetto
46
Feast
Max
Cornetto Soft
the highest priority. The ingredients are pasteurized and homogenized, which ensure
true quality & consistency of the end product.
As a result Kwality Walls is the only one offering a superior and completely hygienic
product.
Kwality Wall's aims to ensure that the consumer gets a world class product delivered
to meet local taste requirement under strict Unilever standards of hygiene and at a
great price!
Irresistible
international
flavour
now
available
in
India
The exotic dessert, Kwality Walls Black Currant Sundae, launched in India, has a
mouth-watering black currant sauce and creamy vanilla. The Black Currant sauce has
been specially formulated by Kwality Walls, to offer a truly delectable dessert for its
consumers, that leaves them yearning for more.
Black currants are grown in Europe, USA and Chile, rich in vitamin C and minerals,
they are used to make exotic jellies, jams, drinks and sauces the world over.
There is an even more interesting history to sundaes. In the 1980s, when this
delightful dish was first put together in the US, it was against the law to sell soda and
consequently, ice-cream sodas on Sundays. So the trend of serving ice cream with
sauces and toppings instead of soda began. Soon, ice-cream sundaes became so
popular that people opted for this dessert on weekdays as well.
Kwality Walls Sundaes were launched in 2001 in India in Chocolate, Strawberry
and Mango flavors. These products were a phenomenal success and are now being
taken to the next level with an exotic Black Currant sauce and Black Currant Dry
Fruit pieces.
In a day and age, when families hardly find time to spend together, Kwality Walls
sees its Sundaes as an offering, which helps bring families together for fun and
enjoyment. 10 p.m. would henceforth stand for Kwality Walls Sundae time!
49
2.
Beverages
50
Brooke Bond Red Label Tea was launched in the year 1903, which makes it one of the
oldest brand of tea in the country. It also has the distinction of being the largest brand
of tea in India and has a truly national presence. For years, Red Label has stood for
good quality tea and it can be easily called as one of India's favourite tea brands.
The brand was relaunched in the year 2000 with a new product formulation, wherein
long Assam orthodox tea leaves were added to the base CTC tea to deliver enhanced
taste. These are referred to as 'Assam Super Tasters' in the brand's communication.
The new campaign highlights the irresistible taste of the new Red Label Tea through
executions that revolve around a very catchy base line 'Don't Mind - Ek Cup Aur' Ready for another cup!
Brooke Bond A1 was launched in the year 1995 as HUL's offering in the discount
segment of tea. It is targeted at converting consumers of loose tea and local packet tea
players.
Brooke Bond A1 has region specific blend formulations to meet the needs of the
consumers in different regions of India.
The core proposition of the brand is 'Strength'. The benefit to the consumer is 'Strong
tea that charges my confidence'.
Brooke Bond A1 Power, a variant of Brooke Bond A1, is fortified with Vitamins. It
has initially been launched in Karnataka in March 2001.
Brooke Bond A1 Power, similar to Brooke Bond A1, has the consumer offering of
"Strength" but has Vitamins as a reason for the consumers to believe in the
proposition. The choice of vitamins has largely been based on evidence of deficiency
among the target group.
Targeted at lower middle class consumers, this brand variant is expected to gain from
local players and upgrade Mother brand Brooke Bond A1.
Taj Mahal Tea was launched in 1966 as a premium CTC leaf brand. Over the years,
the brand has fulfilled its promise of India's best tea. The tea is carefully chosen from
51
a thousand teas from the best gardens of Assam to give it an exquisite aroma and
taste. It is endorsed by Ustaad Zakir Hussain who personifies the brand in all respects.
The brand has constantly led by innovation, whether it be the first tea bag in the
country in 1979 or the patented 'vacuum pack', which keeps the great quality intact.
No wonder tea lovers across the country start the day by saying 'Wah Taj!'
Lipton Taaza was launched in 1988. The strategy for the launch was to convert loose
tea users into packet tea. The brand was launched in a poly pouch format designed to
preserve the freshness of tea. The name Taaza signified 'fresh tea'. The core benefit
was refreshment. Taaza pioneered the format of pouches on a national scale.
Lipton Taaza is one of the largest tea brands in the country, specially in the Hindi belt.
The core proposition of the brand now is 'Fresh Taaza tea refreshes like no other tea
can.' The brand commercials in the past have shown fresh tea being selected from
select gardens and this in turn leading to amazing refreshment.
Lipton Yellow Label is Unilever's global tea brand and sells in many countries across
the world. It has pioneered the growth of tea through non-traditional formats like Tea
Bags and more recently Ice Tea.
Lipton Yellow Label is a brand for young minded people and offers an option to tea
lovers to enjoy their favourite drink in an exciting and refreshing way.
Brooke Bond Bru, launched in 1969, created history in the first year of launch by
growing to a record market share of 21%. Ever since, it has grown from strength to
strength and is now the single largest brand of Instant Coffee in India, with a
dominant presence in South India (which accounts for 65% of the All India market).
Initially positioned on the generic benefit of convenience, it was communicated in the
late 70s as 'the favourite of coffee lovers in the South.' This evolved in the 80's to the
52
well known 'Closest in taste to Filter Coffee' platform. Bru is one of the most salient
Packaged Mass Consumption Goods (PMCG) brands, especially in Southern India.
Bru has been instrumental in virtually creating the entire Instant Coffee category as it
exists today. It has been at the forefront of most innovations in the Instant Coffee
category - whether in coffee-chicory blends, refill packaging, vending operations, or
more recently the Low-unit-price packs. Bru's popularity cuts across all sections of
society - income, townclass and states, the name being synonymous with Instant
Coffee in all the Southern geographies.
Lipton Green Label is the only popular orthodox tea in the country. Chosen from the
best leaves of the best Darjeeling Gardens, the tea has an aroma and flavour that
testifies to its pedigree. The tea is packed in a special toptainer that is both a container
and a dispenser.
Lipton Green Label tea is best when the leaves are brewed in a pot of hot water to
keep the flavour intact. More and more people are discovering the delight of true
orthodox tea through Lipton Green Label.
3.
POPULAR FOODS
Annapurna
CULINARY PRODUCTS
KISSAN
DALDA
54
FINAN
CIAL NEWS
FINANCIAL NEWS
55
Home and Personal Care grew by 3.4% led by a 9% growth in its Power Brands.
Clinic and Lux led a 14.7% growth in the Hair category, while Pepsodent and CloseUp took toothpaste growth to 6% despite aggressive competition. Fair & Lovely and
Ponds grew the Skin business by 18.6%. Despite strong growth by Breeze and
reversal of the Lifebuoy decline, overall Personal Wash sales were marginally lower.
Wheel grew by 18% making it the number one brand in laundry and leading a total
Fabric Wash growth of 7%.
The focus on profitability in the Foods portfolio led to an improvement of 8.5
percentage points in Beverages and by 1 percentage point in Foods businesses. The
flagship brand, Taj Mahal recorded a sales growth of 6% while overall tea declined in
a declining market. Coffee, led by Bru, grew by 15%. Food sales were up 14% with a
18% rise in Oils and Fats. Modern Foods grew by an impressive 66%. Icecream sales
declined by 4%. Group Exports amounted to Rs 1829 crores, a marginal decline of
5%, mainly due to rationalisation in Traded Exports.
Other Income
Other income for the year rose by 11.6% from Rs.382 crores to Rs.385 crores.
Proactive management of surplus funds enabled this despite a sharp fall in the interest
rates.
Business Restructuring
The results for the year include a business restructuring cost of Rs.48 crores compared
to Rs.109 crores in the previous year and Rs.14 crores for the December quarter
compared to Rs.27 crores in the corresponding period.
Exceptional Items
The exceptional income of Rs.100 crores for the year include:
One off reduction in tax liability arising from amalgamation of IBL: Rs.28
crores
Provision for fixed asset write-off and estimated other related costs in respect
of Thermometer business: Rs.11 crores (net of deferred tax: Rs.7 crores)
Provision for fixed asset write-off and estimated other related costs in respect
of Icecream business: Rs.43 crores (net of deferred tax: Rs.28 crores)
Bonus Debentures
The shareholders of the Company at the Extraordinary General Meeting held on 12th
December 2001 have approved the restructuring of General Reserves by issue of
Bonus Debentures in the ratio of 1 Bonus Debenture of Rs.6 for every share of Re.1
held in HUL and payment of special dividend of Rs. 2.76 per share. These debentures
would be redeemed on the second and third anniversary following the issue and
would carry a 9% interest. The proposal is now pending approval from the
Honourable High Court of Bombay.
58
PRESS RELEASES
PRESS RELEASES
59
India can create 70 million new jobs and add 2% annually to GDP growth by
global sourcing of manufactured exports, says M.S. Banga
HUL gearing up for billion-dollar sourcing business out of India
MUMBAI, June 26, 2002: India can double its exports growth rate to 20%, adding
2% to GDP growth rate annually and creating 70 million new jobs in the private
organised sector over 10 years, if it leverages its potential to become a preferred
sourcing centre for manufactured exports, Mr. M.S. Banga, Chairman of Hindustan
unilever Limited (HUL), said here today.
Noting that India has already demonstrated the potential to become a global sourcing
centre for services, Mr. Banga highlighted, However, India cannot rely on services
alone to drive exports. Manufacturing constitutes 72% of global trade worth US$ 6
trillion. For exports to be a major platform for growth, it is imperative that we focus
on and drive manufactured exports.
Mr. Banga said that HUL, already one of Indias largest exporters, has decided to
make sourcing an integral part of the business strategy. Sourcing already accounts
for about half of our total exports of Rs.1500 crore. HULs vision is to build a billiondollar sourcing business out of India, he said. Mr. Banga was addressing HULs
annual general meeting.
Five initiatives: He said that India must move quickly to pre-empt other countries in
the race for global sourcing, and suggested five immediate initiatives, that
Government and Industry will have to take. This will help overcome Indias
disadvantages, in cost, image and process competitiveness, vis--vis other low-cost
nations, like China, Korea, Thailand or Mexico, which are already ahead in the race to
become global sourcing centres in manufactured exports.
The five initiatives are: identifying, nurturing and promoting 2 or 3 Star sourcing
sectors; creating Virtual Special Economic Zones; completely privatising Mumbai
60
and Chennai ports; driving industry productivity and process excellence through the
Total Process Management (TPM) tool; and an enabling fiscal and regulatory Regime.
Star Sourcing Sectors: Mr. Banga said that, within the countrys portfolio,
Pharmaceuticals, FMCG and Processed Marine products have the potential to become
Star sourcing sectors in the immediate term. There is a rationale for the choice of
these sectors. The US FDA requirements are stringent for pharma. Consumer
involvement in food items is high. FMCG items are items of mass consumption. If we
are able to successfully create a niche for ourselves in these sectors, it will give the
Made in India brand for manufactured exports a big boost, which we can then extend
to other sectors, he said.
To nurture the Star sourcing sectors, he called for the establishment of a quasigovernment Apex Sourcing Body, with strong linkages to both the Commerce and
Finance ministries, and independently managed by professionals deputed from
Industry. A good role model is NASSCOM, which has played a crucial role in
positioning India as a global IT services sourcing base. Manufactured goods sourcing
too will gain from a similar organisation, whose focus will be on building the India
Inc. brand through some key activities - attracting lighthouse global companies to
establish manufacturing bases in India; continuously highlighting legal and regulatory
changes required by the sector; and finally, being a knowledge repository for
information and research on the sourcing potential of India, he said.
Virtual Special Economic Zones: Welcoming the Special Economic Zone (SEZ)
legislation, he pointed out that to enjoy the benefits of this legislation, a company
needs to be physically located within the SEZ. This would require an exporter to
spend resources in relocating facilities. This might not be feasible for many industries,
which need to be located near the source of raw materials (e.g., steel) or skilled labour
61
pools (e.g., diamonds). Secondly, an SEZ will take two to three years to begin
functioning with the full infrastructure in place.
Therefore as an interim action, he suggested the establishment of Virtual SEZs
(VSEZs). A VSEZ is similar in concept to the current EOUs. Any unit that exports
more than 50% of its production in a block of three years, wherever it is located, will
be a deemed VSEZ, enjoying all the benefits available to an SEZ, including fiscal
advantages and freedom from administrative procedures. To begin with, the VSEZ
facility could be extended to those companies with an export of Rs.100 crore per
annum, which would kickstart sourcing without waiting till the SEZs are fully
established.
Privatisation of Mumbai & Chennai ports: In the light of the encouraging
experience of privatising three terminals in Chennai and Mumbai ports, Mr. Banga
called for the complete privatisation of these two ports. This will not only enhance
efficiencies and bring down costs, but also earn Rs.2000 crore, in addition to the
annual revenue streams. Besides establishing world-class processes and systems in at
least two ports, this will serve as a model to rapidly privatise other ports as well.
Productivity & process excellence: Highlighting the need for industry to develop an
obsessive commitment to productivity, he suggested the adoption of Total Process
Management (TPM) as a tool. A TPM factory is unbelievably superior to a non-TPM
one I have seen this for myself. On an average, HUL has doubled productivity
through TPM and, in some cases, taken it up to three times the original levels. We
have now adopted TPM in our offices and sales processes as well, he recounted. He
suggested TPM training to be included in ITI and Engineering education, which will
provide more than 200,000 TPM-trained personnel annually to industry. He also
proposed a JIPM (Japanese Institute of Plant Management) certification programme
62
for exporters along the lines of SEI-CMM for IT services companies, which will add
considerably to the image of Indias sourcing.
Fiscal & regulatory regime: Mr. Banga pointed out that the approach to the
regulatory regime for exports should be such that it actively enables exports as a
growth driver. He has suggested Comprehensive VAT for exports and Simplification
of Transfer Pricing rules.
Pointing out that 140 out of 147 countries in the WTO already have Comprehensive
VAT, he strongly suggested immediate introduction of Comprehensive VAT for the
exports sector, which would also provide useful learnings for implementation
subsequently in the domestic sector. On transfer pricing, he said that price fixation in
international markets is subject to many variables, all of which may not be common
across firms, industries or, indeed, across time. Therefore, transfer pricing rules must
be less formulaic. A simple solution is to increase the margin for variance from 5 to
15 %, and simplify the administrative and documentation procedures. In order to
learn, the simplified regime could first be implemented for imports, and then extended
to cover exports.
Mr. Banga concluded, India must move quickly to pre-empt other countries in the
race for global sourcing. Government and Industry must work together to dramatically
improve India's Cost, Image and Process competitiveness. The time is right for us to
move Exports to the top of the economic agenda and make it a national priority.
Kwality
Wall's
makes
its
consumers
'Ek
Din
Ka
Raja'
Rs.10 lakhs in One Day's shopping with their family in Mumbai! They can choose to
spend on consumer goods such as cars, home appliances, furnishings, garments, etc. but within 24 hours!
This 'dream-come-true' offer for the ice cream lovers comes at very affordable prices.
All that one needs to do is buy Kwality Wall's range of products - every pack has a
certain number of points on it. The consumer needs to collect wrappers / lids upto 150
points to be eligible to participate in the 'Ek Din Ka Raja' promo. On collection of
the same, they need to go to a redemption centre where they will be given a scratch
card. (Call centres have been set up at each of the major cities, which will direct
consumers to their nearest redemption centres as well as answer all their queries.)
Upon scratching the cards, 10 consumers can win the mega prize of 10 lacs and shop
till they drop with their families in Mumbai. There are over one million assured prizes
for all who get a scratch card - important to note that every scratch card has a
guaranteed prize (there are no try agains!)which is not very commonplace for such
kind of promotions. The other prizes include microwave ovens, walkmans, gold
plated watches, jigsaw puzzles, video games, fun books, zoomerangs etc.
The mega prize of EDKR entitles the consumer (with his family - upto 4 members) to
be flown into Mumbai with all hospitality taken care of in royal style! They will be
given a chauffeur driven car, two riders and a day to go on their dream-shopping
spree. The winners will get to shop at five popular categories where we are
associating with the best of brands in each category - BPL, Hyundai, Tanishq,
Westside, and Wipro.
"The Ek Din Ka Raja promotion is an effort by Kwality Wall's to connect to our
consumers in a more personal way - we have given them offerings that they love and now we are giving them something that all families love doing together shopping. The time limit of one day makes this promotion very exciting and
64
different from all others. This promo, we are confident, will go a long way in
strengthening the perception of Kwality Wall's as being a brand that emotes
togetherness, fun, sharing and laughter," says Mr J H Mehta, Executive Director Ice Creams, Hindustan unilever Limited.
The 'Ek Din Ka Raja' consumer promotion will be supported extensively by
multimedia communication tools - in what we believe is going to be one of the
biggest and certainly most innovative media support for any consumer promotion
seen before in the country. Apart from this we have an exclusive tie-up with Sony TV
and Indiatimes.com As part of these tie-ups, the consumers will also get to play
EDKR even if they have missed out while "scratching". We will also be reaching over
20 lac consumers directly as part of our extensive consumer contact programme. In
short, ensuring that the excitement of the promotion reaches one and all across the
country and becomes the new mantra for families wanting to shop together! After all as someone said 'The family that shops together - stays together!'
About Kwality Wall's
Kwality Wall's, a brand of Hindustan Unilever Ltd, currently commands a
marketshare of more than 50% of the organised Indian ice-cream sector. Kwality
Wall's has combined the state-of-the-art technical know-how of Unilever-- the global
leader in ice cream products--with a deep insight of the Indian market, to deliver a
range of superior quality products under its international brands. It has recently
revamped its complete brand portfolio and brand proposition in line with HUL's
Brand focus exercise. The essence is captured in the new baseline "Ho jaaye Dil ka
Connection..." a proposition which captures the fun of bonding between families and
friends.
And don't forget, the family that eats together, shops together.
Kwality Wall's launches Super Cornetto
65
gives you that warm feeling inside and is likely to be remembered as one of the all
time favourite ads for 2002.
Hindustan unilever Limited's (HUL) new businesses have made robust and steady
progress, all posting profitable growth. Lever Ayush, the Ayurvedic range of personal
care products, has gone national.
HUL launched Lever Ayush in May 2002. It is for the first time that rigorous testing
procedures of the pharmaceutical industry have been applied to Ayurvedic products.
Mumbai, October 09 th 2002
Pepsodent, Hindustan Unilever Ltd's leading oral care brand, today
announced the launch of Pepsodent Dental Insurance, a first of its kind
initiative in the oral care category in India. Undertaken through a
partnership with the New India Assurance, India's largest General
Insurance company, Pepsodent now offers its consumers free dental
insurance of Rs. 1000/- on purchase of any pack of Pepsodent.
Under this initiative Pepsodent offers its consumers insurance cover
against expenses for the extraction of a permanent tooth or teeth due to
severe Caries and Periodontitis including cost of medication in relation
there to. Caries and Periodontitis are two of the most widespread dental
ailments in India.
Announcing the launch of Pepsodent Dental Insurance Pradeep Banerjee,
Category Head - Oral Care, HUL, said, "Pepsodent Dental Insurance is a
unique concept and first of its kind in the Oral Care category in India. The
initiative not only strengthens Pepsodent's proposition of being a 'germprotector' but also displays our commitment towards improving oral
hygiene for our consumers."
67
Cola, 7Up, Mirinda and other popular carbonated soft drinks through vending
machines and fountains.With this alliance, HUL & Pepsi venture into offering hot
beverages through the Pepsi distribution system for the first time in the country as part
of their strategy to infuse new growth in the entire category of liquid refreshment
beverages.
70
SWOT ANALYSIS
SWOT ANALYSIS
71
72
73
PERSONAL WASH
60.1% of the respondents prefer HULLUX, CINTHOL preferred by 12.6% and
others were around 27.3%.
A.SURF EXCEL
B.CINTHOL
C. Others
WASHING POWDER
The above graph shows the sales share in market of Surf Excel of HUL in India
is 39.7% and other companies like Cinthol share has 23%.
75
B.P&G
C.Others
The above graph shows the sales share in market of Clinic All Clear Shampoo of
HUL in India is 64.9% and other companies like P&G is 13%.
76
C. Others
The above graph shows the sales share in market of Pepsodent of HUL in India
and other companies is 35.8%.colgate contributes around 47.8%
market share.
C. Others
SKIN CREAMS
The above graph shows the sales share in market of Lakme of HUL in India and
other companies is 54% whereas fairone contributes about 8%.
78
LIMITATIONS
LIMITATIONS
79
Though HUL seems to be ruling the roost in various segments of household goods
industry, findings suggest that its marketing strategies are not without loopholes. Let
us have a look at these loopholes or limitations in brief.
One very striking limitations is the fact that even though these products with allpercasive marketing and distribution channels, flourishing increasingly in
different parts of the world there appears
providing them substantial access to semi-urban and rural areas. In other words,
the products of HUL have a weaker grassroots bases.
The availability of these products to common people does not only depend on
marketing network, but also on the advertising strategies adopted by HUL. On this
count culinary products dont seem to offer much to create any stir and betray
manifest upward trends in terms of widening consumer base.
The pricing strategy adopted by HUL shows considerable fluctuation, which has
led the consumer base to remain almost stagnant in many segments. Usually, the
prices of these products are too high to make these affordable to the common
masses and particularly those belonging to low-income groups. This phenomenon
seems to be most evident in culinary goods segment, which constitutes the
backbone of HULs industrial base.
Agricultural pursuits have not yet attained the status of industrial activities to a
considerable degree. So, the supply mechanism adopted by HUL for the raw
materials tends more often to suffer from a kind of unpredictability syndrome in
terms of communication and planning. On certain occasions, the readily available
agricultural input is too low to cater to the needs of manufacturers because
cultivation for industrial production or industry-oriented farming is not popular
concepts even today in many countries of the world including India.
Though, the facilities of transportation and logistics for the supply of raw material
dont lack substantiality as much in case of HUL as most other players in the
industry even HUL is not totally luinune to the problems posed by it. On many
occasions, transportation costs are too high, which affect the overall pricing
strategy adopted by HUL.
HUL manufactures a large range of products along with those we call culinary
products. This diversification in products. But culinary products are usually
bracketed with other (major) products in case of these companies. So, no serious
or special attention is paid to devising separate or exclusive strategies for these
products. It makes their brand name rather than considerations of their qualitative
80
excellence the most significant criterion for their survival in the impredicable and
at times, precarious situation of consumer.
81
SUGGESTIONS AND
RECOMMENDATION
S
82
83
CONCLUSION
84
CONCLUSION
A look at the contemporary profit of the global industrial segment of household
goods brings it into clear focus that the situation prevailing in major markets is very
much in favour of HUL. The fact that should be acknowledged on the basis of current
trends betrayed by this segment tells us that HUL veritably stand out as on
indisputable market leader in this field and is sure to surge way ahead of other
players in future. The competitive strength, strategic acumen and ability to reach out
for a considerably larger consumer base that the company has been able to attain
through the years since its inception also point to this fact categorically.
An extremely pertinent views that emerges out of it amply suggests that it is the
dominance of HUL operating under the banner of Unilever in most of the countries
that contribute in a large measure to the creation of a market situation in which
consumers are nearly forced to purchase their choice at prices that might not be in
congruence with their speculations and calculative consideration of affordability
something that largely determines the phenomenon called consumer behaviour. It is
absolutely doubtless to assume are incomparable in term of their qualitative
excellence.
It is a bit surprising to observe that HUL is the market leader even though its capable
of manufacturing and marketing a vast range of products with an international
consumer base. Moreover, the tie-up of Prima India with HUL reflects that the latter
is not unwilling to share its technological expertise and infrastructural contrivances
with others. So, inspite of the near monopoly situation caused by HULs presence in
the global market, it points to a healthy flexibility in the companys fundamental
approach.
Another very striking aspect of HULs global marketing strategy and operations, as it
has been pointed out and dwelt upon in the present study, is its enormous ability to
capitalize on the resources available to it. The company has had the distincting of
taking determined steps to maximize opportunities of image building in the global
market. In order to accomplish this task, the management of HUL is poised to keep
infusing new spirit in its HRM wing in order that it may veritably serve as an
instrument for proliferating marketing prospects for HUL products. That way both
85
internal and external marketing are taken cognizance of with identical sense of
concern. This approach draws sustenance from the comprehensive international
network of overseas operation centres, associates, agents and allies.
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BIBLIOGRAPHY
87
BIBLIOGRAPHY
Book
Magazines
A&M
Business Barons
Business Today
Business World
Newspapers
Internet website
www.google.com
www.indiainfoline.com
www.hul.com
www.unilever.com
www.altavista.com
88
QUESTIONNAIRE
89
QUESTIONNAIRE
Name: Mr. / Mrs. / Ms.
Address:
Income:
Ph No.
Age group: Kindly tick whichever is applicable?
a. < 20
b. 25-30
c. 35 and above
Occupation
Who washed the clothes in your home?
a. Your self
b. Maid
c. Any other
Income group:
a. < 3000
b. 3000 3500
c. 3500 4000
d. 4000 and above
Q-1:- Do you wash your cloth at home?
a.
Yes
b. No
b. No
b. Wheel
c. Surf
d. Nirma
e. Tide
f. Ariel
g. Other
Q -4: What influence you to buy your preferred brand?
a. Friends
b. Neighbors
c. Advertisements
d. Self experience
e. Any other
Q-5:- What influence & your decision while buying the
detergent?
a. Whiteness
b. Lather
c. Easy on handle
d. Easy on fabric
e. Any other
Q-6:- Have you seen any promotional campaign of detergent?
a. Yes
b. No
a.
Less than 1 kg
b.
1-2 kg
c.
2-3 kg
d.
3-4 kg
e.
b. No
b. Rin
c. Wheel
d. Nirma
e. Tide
f. Henco
93
ANNEXURE
94
Questionnaire
Dear Sir/Madam,
I would, therefore, request you to kindly assist us in our efforts by sparing a
little time to give us your valuable feedback and suggestions in the feedback form
below. Please do not hesitate to inform us of any observation that you think may be
relevant. We assure you that we would try to come up to your expectations.
Name:
Sex :
Age:
Occupation:
..
Address:
D. Dove
2. Which of the following you would prefer as washing powder?
A. Surf Excel
B. Washing Powder
C. Tide
D. Wheel Active
3. Which of the following you would prefer as shampoo?
A.HUL-CLINIC ALL CLEAR
B. Head & shoulders
C. Pantine
D. Clinic Plus
4. Which of the following you would prefer as toothpaste?
A. HUL-Pepsodent
B. Colgate
C. Babool
D. Close Up
5. Which of the following you would prefer as SKIN CREAM?
A. HUL-LAKME
B. FAIRONE
C. Fair & Lovely
D. Fair & Handsome
D. Lipton
7. Which of the following you would prefer as washing bars?
A. Wheel
B. Nirma
C. Surf Excel
D. Rin
97