Professional Documents
Culture Documents
ON
MARKETING STRATEGIES
OF HINDUSTAN UNILEVER
LTD.
Submitted for the fulfillment towards the award of the degree in Master of Business
Administration of U.P.Technical. University, Lucknow
[2009-2011]
SUBMITTED BY SUBMITTED TO
MOHD. WAHID DR. V.K.BHATIA
Roll.No-0915870041 Director General
MBA -3rd Sem
JANHIT INSTITUTE OF EDUCATION & INFORMATION
GREATER NOIDA
(Affiliated by Uttar Pradesh Technical University,
Lucknow)
ACKNOWLEDGEMENT
MOHD. WAHID
2
TABLE OF CONTENTS
Executive Summary
Introduction
Company Profile
Current Market Context
Exports Portfolios
Corporate Management
Research & Innovation Centre
Safety & Health Policy
Market Strategies
HLL Distribution Network
Pioneering Channels
Hindustan Unilever Ltd.
Competitors
Research Methodology
Future Scope
Findings, Data Analysis & Conclusion
Recommendations
Suggestions
Limitations
Bibliography
(Annexure) Questionnaire
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EXECUTIVE SUMMARY
Products and Foods & Beverages. They endow the company with a
000 crores.
4
The research is based primarily on primary data; however few
references to industry figures from secondary data have been made.
Data has been collected through in depth interviews and administered
questionnaires.
5
INTRODUCTION
Over 100 years' link with India. In the summer of 1888, visitors to the
Kolkata harbor & noticed crates full of Sunlight soap bars, embossed
with the words "Made in England by Lever Brothers". With it, began an
Soon after followed Lifebuoy in 1895 and other famous brands like
Pears, Lux and Vim. Vanaspati was launched in 1918 and the famous
Dalda brand came to the market in 1937.
of its equity to the Indian public, being the first among the foreign
1903, the company had launched Red Label tea in the country. In
1912, Brooke Bond & Co. India Limited was formed. Brooke Bond
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joined the Unilever fold in 1984 through an international acquisition.
The erstwhile Lipton's links with India were forged in 1898. Unilever
acquired Lipton in 1972, and in 1977 Lipton Tea (India) Limited was
incorporated.
Pond's (India) Limited had been present in India since 1947. It joined
Since the very early years, HUL has vigorously responded to the
production capacity.
mergers. In one of the most visible and talked about events of India's
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corporate history, the erstwhile Tata Oil Mills Company (TOMCO)
merged with HUL, effective from April 1, 1993. In 1995, HUL and yet
in 1998, Lakme Limited sold its brands to HUL and divested its 50%
HUL formed a 50:50 joint venture with the US-based Kimberly Clark
Diapers and Kotex Sanitary Pads. HUL has also set up a subsidiary in
Nepal, Nepal Lever Limited (NLL), and its factory represents the
Personal Products both for the domestic market and exports to India.
8
As a measure of backward integration, Tea Estates and Doom Dooma,
Then in July 1993, Brooke Bond India and Lipton India merged to form
Brooke Bond Lipton India Limited (BBLIL), enabling greater focus and
end of the year, the company entered into a strategic alliance with the
Finally, BBLIL merged with HUL, with effect from January 1, 1996. The
Limited (PIL) with HUL in 1998. The two companies had significant
Personal Products. The two also had a common management pool and
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74 per cent equity in Modern Foods to HUL, thereby beginning the
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COMPANY PROFILE
for nutrition, hygiene, and personal care with brands that help people
feel good, look good and get more out of life. It is a mission HUL
shares with its parent company, Unilever, which holds 51.55% of the
HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair &
personal products, tea, coffee, branded staples, ice cream and culinary
directly covers the entire urban population, and about 250 million rural
consumers.
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technology in all its operations. The Hindustan Lever Research Centre
(HLRC) was set up in 1958, and now has facilities in Mumbai and
Bangalore. HLRC and the Global Technology Centres in India have over
South India.
Over the last three years the company has embarked on an ambitious
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creating access to relevant information through the iShakti community
practices among rural Indians and aims to bring down the incidence of
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HINDUSTAN UNILEVER LIMITED INDIA’S LARGEST FMCG COMPANY
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FINANCIAL OVERVIEW
15
Hindustan Lever Limited Shareholding
Pattern
Flls
13.7
Domestic
Fls
14.8 Unilever
51.6
Individual
19.9
16
PRESENT MARKETING STRATEGY:
Mission:
needs for nutrition, hygiene, and personal care with brands that help people feel
Policy:
HUL has earned a reputation for conducting its business with integrity and with
respect for the interests of those their activities can affect. This reputation is an
Their first priority is to be a successful business and that means investing for
growth and balancing short-term and long-term interests. It also means caring
about their consumers, employees and shareholders, their business partners and
From HUL Spokesperson “To succeed requires the highest standards of behavior
from all of us. The general principles contained in this Code set out those
standards. More detailed guidance tailored to the needs of different countries and
companies will build on these principles as appropriate, but will not include any
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We want this Code to be more than a collection of high-sounding statements. It
must have practical value in their day-to-day business and each one of us must
follow these principles in the spirit as well as the letter”.ref: business world
magazine.
HUL companies and employees are required to comply with the laws and
Employees
mutual trust and respect and where everyone feels responsible for the
• HUL are committed to safe and healthy working conditions for all
labour.
• HUL respect the dignity of the individual and the right of employees to
freedom of association.
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• HUL will maintain good communications with employees through
Consumers
offer value in terms of price and quality, and which are safe for their intended
use. Products and services will be accurately and properly labelled, advertised
and communicated.
Shareholders
principles of good corporate governance. They will provide timely, regular and
Business Partners
Community Involvement
fulfill their responsibilities to the societies and communities in which they operate.
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Public Activities
HUL companies are encouraged to promote and defend their legitimate business
interests. HUL will co-operate with governments and other organisations, both
proposed legislation and other regulations which may affect legitimate business
interests.
HUL neither supports political parties nor contributes to the funds of groups
The Environment
sustainable business.
HUL will work in partnership with others to promote environmental care, increase
Innovation
In their scientific innovation to meet consumer needs they will respect the
concerns of their consumers and of society. They will work on the basis of sound
Competition
HUL believes in vigorous yet fair competition and supports the development of
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appropriate competition laws. Their companies and employees will conduct their
operations in accordance with the principles of fair competition and all applicable
regulations.
Business Integrity
HUL does not give or receive, whether directly or indirectly, bribes or other
improper advantages for business or financial gain. No employee may offer, give
or receive any gift or payment which is, or may be construed as being, a bribe.
Any demand for, or offer of, a bribe must be rejected immediately and reported to
management.
Conflicts of Interests
All HUL employees are expected to avoid personal activities and financial
interests which could conflict with their responsibilities to the company.
HUL employees must not seek gain for themselves or others through misuse of
their positions.
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Compliance – Monitoring – Reporting
Assurance of compliance is given and monitored each year. Compliance with the
Code is subject to review by the Board supported by the Audit Committee of the
Board and the Corporate Risk Committee.
Any breaches of the Code must be reported in accordance with the procedures
specified by the Joint Secretaries. The Board of Unilever will not criticise
management for any loss of business resulting from adherence to these
principles and other mandatory policies and instructions.
Provision has been made for employees to be able to report in confidence and no
employee will suffer as a consequence of doing so.
In this Code the expressions 'Unilever' and 'Unilever companies' are used for
convenience and mean the Unilever Group of companies comprising Unilever
N.V., Unilever PLC and their respective subsidiary companies. The Board of
Unilever means the Directors of Unilever N.V. and Unilever PLC’.ref:THE NEWS
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Envoirment policy
Hindustan Unilever Limited (HUL) supplies high quality goods and services to
meet the daily needs of consumers and industry. In doing so, the Company is
committed to exhibit the highest standards of corporate behaviour towards its
consumers, employees, the societies and the world in which we live.
The company recognises its joint responsibility with the Government and the
Public to protect environment and is committed to regulate all its activities so as
to follow best practicable means for minimising adverse environmental impact
arising out of its operations.
This Policy document reflects the continuing commitment of the Board for sound
Environment Management of its operations. The Policy applies to development of
a process, product and services, from research to full-scale operation. It is
applicable to all company operations covering its plantations, manufacturing,
sales and distribution, research & innovation centres and offices. This document
defines the aims and scope of the Policy as well as responsibilities for the
achievement of the objectives laid down.
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The Vision
FMCG Markets
Slowdown in growth & then 2 years of decline
00 01 02 03
8
6
4
6.7
2 3.4
0
-1.1
-2.5
-2
-4
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FMCG Markets
2009 - Revival after 2 years of decline
Price reduction
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Price reduction (Bottles) & Value improvement (Sachets)
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Investment Behind Brands
Family – safe Petalsoft Water & effort saving Quick wash - 50% No mud Rin
Advance from germs
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Current Market Context
Actions
• Pricing
–Laundry : Price Reduction
–Shampoos: Value Improvement & Lower Price Points
–Toothpaste: Value Corrections & SKU rationalization
• Investments behind brands
– Innovations
– Quality
– Higher A&P
• Corrective actions in processed
Processed Foods
• Corrective actions
– Phased stock reduction
– Withdrawl of ‘03 innovation
– Defocus of Atta in unviable geographies
• Sales decline of 26% arising from above actions
• Market shares held / improved
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Sales Growth%
BRANDS
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PRODUCTS
Lux Breeze
Lifebuoy Dove
Liril Pears
Hamam Rexona
Axe Lakme
Rexona
Ayush
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India's Largest Branded FMCG Exporter
It was 1962. The reality of India then was very different from what it is today.
India's economy then suffered from foreign exchange shortage. Hindustan
Lever voluntarily decided to take up Exports to support the country's economy.
Today, HUL is India's largest exporter of branded Fast Moving Consumer Goods.
It has been recognized by the Government of India as a Golden Super Star
Trading House.
Focus Areas
HUL's Exports focuses on two broad areas. It is a sourcing base for Unilever
brands in Home & Personal Care (HPC) and Tea for supplies to other Unilever
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companies. It also focuses on becoming a preferred supplier to both non-
Unilever and Unilever clients in three categories in which India, as a country,
has competitive advantage - Marine Products, Castor and its Derivatives and
Rice. HUL enjoys international recognition within Unilever and outside for its
quality, reliability and speed of customer service.
HPC:
The categories are soaps, skin care products and oral care products. The brands
are Lux, Lifebuoy, Pears, Fair & Lovely, Dove, Vaseline, Close-Up, Pepsodent,
Signal. HUL is the only source of Pears soap across the world.
Tea:
The categories are branded packet tea, and instant tea for Unilever's ready-to-
drink tea business. The branded teas are Brooke Bond, Brooke Bond Red label,
Brooke Bond Taj Mahal, Lipton, Lipton Yellow Label, Lipton Green Label, Lipton
Brisk, Lipton 3-in-1 premix, Chinese Rickshaw.
Marine Products:
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Seal, Tara and Prima.
Rice:
The categories are Basmati Rice and Basmati Rice-based ready-to-eat rice
meals. The brands are Gold Seal Indus Valley, Rozana and Annapurna.
Castor:
The categories are Castor Oil, Castor-oil based products, like hydrogenated
castor oil, 12 - Hydroxy Stearic Acid, Ricinoleic Acid (used in grease and
lubricant industry, paints and surface coatings, cosmetics, emulsifiers), and
Speciality Castor Oils (USP grade, BP grade, DAB 10) etc used in
pharmaceutical preparations. HUL's Castor brand is Topsol.
Product Range
• Lever home range
• Male grooming
• Oral Care
• Ayurveda
• Personal Wash
• Foods
Reach - 1400 towns (Largest in India)
Consultant base - 330,000
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34
Accordingly, HUL's aims are to:
Ensure safety of its products and operations for the environment
by using standards of environmental safety, which are
scientifically sustainable and commonly acceptable.
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Work in partnership with external bodies and Government
agencies to promote environmental care, increase understanding
of environmental issues and disseminate good practice.
Responsibilities
Corporate
Nominate:
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Ensure implementation of HUL Policy on environment and
compliance with Unilever and HUL environmental standards and
the standards stipulated under relevant national / local
legislation. When believed to be appropriate, apply more
stringent criteria than those required by law.
Individual Units
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The overall responsibility for environment management at each
unit will rest with the Unit Head, who will ensure implementation
of HUL Policy on environment at unit level. Concerned line
managers / heads of departments are responsible for
environmental performance at department levels.
Ensure that the unit complies with Unilever and HUL mandatory
standards and the relevant national and state regulations with
respect to environment.
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Manage change in People, Technology and Facilities through a
planned approach based on training, risk assessment, pre-
commissioning audits and adherence to design codes.
Since most new products and processes are developed in these Units,
certain additional
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responsibilities devolve on them to ensure implementation of the
Environment Policy of the company. In addition to the Unit Head's
responsibilities outlined above, the heads of these units will:
QUALITY POLICY:
40
The company recognises that its employees are the primary stheirce of
success in its operations and is committed to training and providing
them the necessary tools and techniques as well as empowering them
to ensure broad base compliance of this policy in the organisation at all
levels.
The company will periodically review this quality policy for its
effectiveness and consistency with business objectives.
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SAFETY AND HEALTH POLICY
Introduction
Their Vision
HUL NEWS:”We will bring safety on top of mind for all employees and
will integrate it with all business processes. We will realize their Vision
through an Integrated Safety Management approach, which focuses on
People, Processes, Systems, Technology and Facilities, supported by
demonstrated leadership and employee commitment at all levels as
the prime drivers for ensuring a safe and healthy work environment”.
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Safety Principles:
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Consumer satisfaction
Home to over 700 million people, rural India comprises not only over
70% of India's billion-strong population, but also over 12% of the
world's population. The rural population already accounts for substantial
consumption of Fast Moving Consumer Goods and also consumer
durables. About 50% of the sales of soaps & detergents are generated
in rural India. Similarly, almost half the demand for black & white
television sets, pressure cookers, table fans, sewing machines also
comes from there.
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Cost management:
Hindustan Lever has taken many initiatives over the decades to create
markets in the rural hinterlands. By marketing relevant products, at
affordable prices.
At the same time, if products have to come up the order in the rural
purchase hierarchy, they have to be affordable. If rural India today
accounts for about half of detergents sales, it is because HUL has
developed low-cost value-for-money branded products, like Wheel. The
company has also taken initiatives to create markets even for
apparently premium products, by offering them in pack sizes, like
sachets, whose unit prices are within the reach of rural consumers. For
example, initiated in the 1980s, sachets (Rs.2, Re.1, or 50 paise) today
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constitute about 55% of Hindustan Lever's shampoo sales. With media
reach gradually increasing, rural consumers today, where the media has
its footprints, share the same aspirations with their urban counterparts.
HUL has responded to the trend with low unit price packs of even other
products - Lux at Rs.5, Lifebuoy at Rs.2, Surf Excel sachet at Rs.1.50,
Pond's Talc at Rs.5, Pepsodent toothpaste at Rs. 5, Fair & Lovely Skin
Cream at Rs.5, Pond's Cold Cream at Rs.5, Brooke Bond Taaza tea at
Rs.5.
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talcum powder, toothpaste and skin cream, along with educational
leaflets and audio-visual demonstrations. The project has helped
eliminate barriers to trial, and has strengthened salience of both
particular categories and brands. Similarly in 2002, Hindustan Lever has
launched a similar large-scale direct contact, called Lifebuoy Swasthya
Chetana, which already covers 70 million people in 18,000 villages of 8
states. The project is intended at generating awareness about good
health and hygiene practices, and specifically how a simple habit of
washing hands is essential to maintaining good health. The initiative will
involve interaction with students and senior citizens, who act as change
agents.
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identifies sub-stockists in a large village, connected by motorable road
to a small town. This sub-stockist in turn distributes the company's
products to outlets in adjacent smaller villages using transportation
suitable to interconnecting roads, like cycles, scooters or the age-old
bullock cart. Hindustan Lever is thus trying to circumvent the barrier of
motorable roads. As a result, the distribution network, as of now,
directly covers about 50,000 villages, reaching about 250 million
consumers. The company simultaneously uses the wholesale channel,
suitably incentivising them to distribute company products.
Over time, Hindustan Lever will further strengthen its rural distribution
through mutually beneficial alliances with rural Self Help Groups (SHGs).
Over the last five years, financial institutions, NGOs and government
organisations are working closely to establish SHGs, whose objective is
to alleviate poverty through sustainable income-generating activities.
Since 2001, Hindustan Lever is implementing Project Shakti, whereby
SHGs are being offered the option of distributing relevant products of
the company as a sustainable income-generating activity. The model
hinges on a powerful win-win relationship; the SHG engages in an
activity which brings sustainable income, while Hindustan Lever gets an
interface to interact and transact with the rural consumer. HUL's vision
for Project Shakti is to scale it up across the country by 2005, creating
about 25000 Shakti entrepreneurs, covering 100,000 villages, and
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touching the lives of 100 million rural consumers. Begun with 50 groups
in Nalgonda district of Andhra Pradesh, with the support of local
authorities, the project has been extended, as of now, to about 50,000
villages in 12 states. A typical Shakti entrepreneur conducts business of
around Rs.10,000 - Rs 15,000 per month, which gives her an income of
about Rs 700 - Rs.1000 per month on a sustainable basis. As most of
these women are from below the poverty line, and live in extremely
small villages (less than 2000 population), this earning is very
significant, and is almost double of their past household income. The full
benefit of Project Shakti will be realised after some years.
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HUL DISTRIBUTION NETWORK
WHOLESALERS
RETAILERS
CUSTOMERS
This is the whole Distribution Chain of HUL to cover the Rural market.
The company have remarkably worked upon to make the supply chain
from manufacturers to retailers simple with very few number of
mediators and jobbers. It has helped them to maintain the transparency
in the cycle and also have let them established a prompt delivery
process. The products are manufactured in the factories all across India
and then is supplied from there to the various Carriage and Forwarding
(C&F) units which are 5-10 per state depending on the area they have
to cover and are established by the company. These C&F units then
supply the products to the various Wholesalers confined to their area
only and according to the wholesalers demand. The wholesalers then
supply the products to the semi-wholesalers and the retailers as per the
volume of their order. Then the semi-wholesalers deliver the products to
the retailers and customers.
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MANUFACTURER
STAGE 1-
C&F
In this stage the products reach to the Carriage and Forwarding unit
from various manufacturing units established all across India. The
volume of the delivery depends upon the quantity required/ordered by
the C&F unit. The depot sends the request of the volume of the products
to the Head Office, which then order the various factories to supply the
products to the mentioned depot. The supply is met within a week. HUL
has 45 C&F’s with 7000 stockists and 2000+ suppliers and associates to
target the market.
C&F
STAGE 2-
WHOLESALERS
The C&F then supplies the products according to the demand of various
wholesalers. Each of the depot cover a region assigned to them.
Each C&F acquires 5-7 trucks and hire 4-5 more trucks to supply
products everyday.
They work on the concept of advance payment by DD by the
wholesalers and deposit them in the bank which is transferred to the
head office.
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NATION WIDE MANUFACTURING:
The year was 1923. Lord Leverhulme, the legendary founder of Lever
Brothers, was visiting India. The nationalist sentiment in India was for
locally manufactured products. Lord Leverhulme, who believed that
what is good for a country is equally good for the company, responded
to that aspiration because he too shared that dream.
These two factories were the first in a manufacturing base, which today
literally dots the length and breadth of India. From Assam to Gujarat,
from Uttaranchal to Kerala.
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DEVELOPING BACKWARD AREAS
Several HUL factories are situated in backward areas. The company has
consciously responded to the national policy of development of
backward areas by setting up manufacturing units in these places, which
provide several direct and indirect employment opportunities for these
areas, and leads to general economic development of these regions
through industrialisation. In fact, all major investments of HUL, in recent
years, have been either in A-Category backward areas or No-Industry
Districts. These include factories in Khamgaon and Yavatmal
(Maharashtra), Chhindwara (Madhya Pradesh), Orai, Sumerpur and
Khalilabad (Uttar Pradesh), Haldia (West Bengal), Silvassa (Dadra &
Nagar Haveli), Pondicherry, Goa, Doom Dooma (Assam), Haridwar
(Uttaranchal) and Barotiwala (Himachal Pradesh). Since 2001 itself, HUL
has set up nine new factories in backward areas.
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already received the TPM Consistency Award, and 14 factories have
been awarded with the TPM Excellence Award.
How do you ensure that Mr. Ramesh in Kanyakumari gets his Lifebuoy
soap and Mrs. Kulkarni in Jammu gets to know how Bru coffee tastes
even before she has bought it? Well, you need to have a cutting edge
distribution network in place.
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AT THE SUPERMARKETS
In the villages
HUL has also revamped its sales organisation in the rural markets to
fully meet the emerging needs and increased purchasing power of the
rural population. The company has brought all markets with
populations of below 50,000 under one rural sales organisation. The
team comprises an exclusive sales force and exclusive redistribution
stockists, under the charge of dedicated managers. The team focuses
on building superior availability, while enabling brand building in the
deepest interiors. HUL's distribution network in rural India already
directly covers about 50,000 villages, reaching about 250 million
consumers, through about 6000 sub-stockists.
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is available at the right place in right quantities, in the most cost-
effective manner. For this, stockists have been connected with the
company through an Internet-based network, called RSNet, for online
interaction on orders, despatches, information sharing and monitoring.
RS Net covers about 80% of the company's turnover. Today, the sales
system gets to know every day what HUL stockists have sold to almost
a million outlets across the country. RS Net is part of Project Leap,
HUL's end-to-end supply chain, which also includes a back-end system
connecting suppliers, all company sites and stretching right upto
stockists.
SHAKTI - Changing Lives in Rural India
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Rajasthan, Punjab, Haryana, West Bengal, Orissa, Bihar & Jharkhand.
The respective state governments and several NGOs are actively
involved in the initiative.
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Godavari districts. iShakti has been developed to provide information
and services to meet rural needs in medical health and hygiene,
agriculture, animal husbandry, education, vocational training and
employment and women's empowerment. The vision is to have 3,500
kiosks across the state by 2005.
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presents a range of customised offerings in Home & Personal Care and
Foods.
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NOVEL PRODUCT NEW PROCESS
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could be developed, which would help reduce water consumed in
washing of clothes. HUL's scientists have innovated a path-breaking
technology - it reduces water consumption and time taken for rinsing
by 50%. The technology has already been introduced.
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become a global success through exports to over 30 countries. The
product is equally used by the local population of these countries,
apart from those of Indian origin.
Energy conservation
In the past, one of the most significant breakthroughs of HUL's
research initiative has been the development of a technology to use
non-conventional forest seed oils for soap-making which, since the
1970s, has helped save around $1.2 billion in foreign exchange. HUL
had received the Government of India's prestigious award for import
substitution. Development of Structurant Technology for soap
manufacturing also helped save costly conventional oils without any
compromise on product performance and quality. The latest technology
to produce Distilled Fatty Acid for soap making and the resultant plant
capacity expansion has drastically brought down specific energy
consumption while improving distillation yields. The evolution of
continuous soap processing technology has also reduced energy
consumption.
HUL believes that technology is critical to delight consumers. Creative
application of technology has made Hindustan Lever successful in
launching products and services, which raise the quality of life.
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HELPING HANDS:
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HUL's employees are donating a day's salary, matched equally by the
Company for exclusive use in rehabilitation.
The biggest concern is, that people/ fishermen have lost their means
of livelihood. HUL plans to focus its rehabilitation efforts to restore
their means of livelihood so that the local communities can quickly get
back to their lives at the earliest.
HUL has always been a front runner in its call for national duty and
caring for the community. Its employees not only donate generously,
but volunteer to take part in relief operations by committing their time
and physical effort. This is in line with our corporate value of “care”
and our CSR mission which has become an integral part in our way of
doing business.
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Special Education & Rehabilitation
Under the Happy Homes initiative, HUL supports special education and
rehabilitation of children with challenges.
Asha Daan:
The initiative began in 1976, when HUL supported Mother Teresa and
the Missionaries of Charity to set up Asha Daan, a home in Mumbai for
abandoned, challenged children, and the destitute. Subsequently, Asha
Daan has also become a home to the HIV-positive. The objective in
supporting Asha Daan was and continues to be to share the
organsation's prosperity in supporting the Mother's mission of serving
the "poorest of the poor". Asha Daan has been set up on a 72,500-
square feet plot belonging to HUL, in the heart of Mumbai city. HUL
bears the capital and revenue expenses for maintenance, upkeep and
security of the premises. The destitute and the HIV-positive are
provided with food, shelter and medication for the last few days of
their lives. The needs of the abandoned challenged children are also
met through special classes of basic skills, physiotherapy and, if
possible, corrective surgery. At any point of time, it takes care of over
300 infants, destitute men and women and HIV-positive patients.
Over the years, HUL has opened schools for challenged children with a
sharper objective of supporting families of such children, helping the
children become self-reliant by learning appropriate skills to be
productive members of the household.
Ankur:
In 1993, HUL's Doom Dooma Plantation Division set up Ankur, a centre
for special education of challenged children. The centre takes care of
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children with challenges, aged between 5 and 15 years. Ankur provides
educational, vocational and recreational activities to over 35 children
with a range of challenges, including sight or hearing impairment, polio
related disabilities, cerebral palsy and severe learning difficulties.
These physically and mentally challenged children are taught skills,
such as cookery, painting, embroidery, bamboo crafts, weaving,
stitching, etc depending on their aptitudes. The centre has
rehabilitated 10 children, including self-employment for 6 children by
providing them with shops, and 3 girls have been provided
employment as creche attendants. It has also moved to normal
schools 18 children. Since inception it has covered about 80 children.
Ankur received the Lawrie Group Worldaware Award for Social
Progress in 1999 from HRH Princess Royal in London.
Kappagam:
Encouraged by Ankur's success, Kappagam ("shelter"), the second
centre for special education of challenged children, was set up in 1998
on HUL Plantations in South India. It has 17 children. The focus of
Kappagam is the same as that of Ankur. The centre has 17 children,
being taught self-help skills, useful vocational activities like making of
paper covers, greeting cards, wrapping papers, fancy stationery,
napkins, brooms made out of coconut leaves, candles, and also some
home care products. About 12 of the children have become relatively
self-reliant by earning through crafts learnt at the centre. Since
inception, it has covered about 28 children.
Anbagam:
Yet another day care center, Anbagam ("shelter of love"), has been
started in 2003 also in the South India Plantations. It takes care of 11
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children. Besides medical care and meals, they too are being taught
skills such that they can become self-reliant and elementary studies.
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All the brands in Skin category maintained their strong performance
leading to a double digit growth for the category. Consumer relevant
innovations continue to drive off-take and key innovations during the
quarter include the re-launch of “Thick and Strong” Sunsilk Pink, Lux
variants for the 75-year celebrations, and the national launch of
“Jasmine Fresh” Rin Advanced Powder.
For full year 2005, total sales were 11.4% higher than in the
previous year, with broad based growth across categories leading to
both HPC and Foods businesses growing by 14% and 8%, respectively.
Judicious price increases coupled with robust cost saving initiatives
partly neutralised the impact of both cost escalations, particularly in
the Laundry category, and the higher investments behind brands.
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Consequently, PBIT increased by 1.1%. A lower tax charge for the year
resulted in a PAT growth of 12.9%. Net Profit and Earnings Per Share
at Rs 6.40, grew by 17.6%.
DIVIDEND
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HUL is India's largest Fast Moving Consumer Goods company, touching
the lives of two out of three Indians. HUL’s mission is to “add vitality
to life” through its presence in over 20 distinct categories in Home &
Personal Care Products and Foods & Beverages. The company meets
everyday needs for nutrition, hygiene, and personal care, with brands
that help people feel good, look good and get more out of life.
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The acquisition of TEIL by Woodbriar Group will provide scale and bring
in synergy benefits to Woodbriar Group, as a large portion of TEIL
gardens are contiguous to the existing tea gardens of Woodbriar
Group. Canara Bank, Madurai Circle has funded the debt component to
Woodbriar Group for this acquisition.
With this disposal of shareholding in TEIL, HUL has completed its exit
from its tea plantations business both in South India and Assam. It
may be recalled that HUL had sold its interests in Rossell Industries
Limited and Doom Dooma Tea Company Limited in Assam during the
last 12 months.
About HUL:
HUL is India's largest Fast Moving Consumer Goods Company, touching
the lives of two out of three Indians. HUL's mission is to "add vitality to
life" through its presence in over 20 distinct categories in Home &
Personal Care Products and Foods & Beverages. The company meets
everyday needs for nutrition, hygiene, and personal care, with brands
that help people feel good, look good and get more out of life. For
more information visit www.HUL.com
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COMPETITORS
Financial Highlights
Fiscal Year End: June
Revenue (2005): 56741.00 M
Revenue Growth (1 yr): 10.40%
Employees (2005): 110,000
Employee Growth (1 yr): 0.00%
RESEARCH METHODOLOGY
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The section includes the overall research design, the sampling
procedure, the data collection method, the field method, and analysis
and procedure.
RESEARCH DESIGN
For this research project exploratory method is using
RESEARCH INSTRUMENT
SAMPLING PLAN
Keeping all the constrains in mind a sample size of 100 people .The
sampling procedure is systematic sampling
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SCOPE
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FINDINGS, DATA ANALYSIS AND CONCLUSIONS WHEN
COMPARED WITH PROCTER AND GAMBLE LTD.
Findings
Product line
Rexona .
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FOODS
In tea they have the brand name brook bond and lipton.
In coffee they have bru.
In foods they have kissan and kinnor annpuran.
In ice creams they have the kwality walls.
WATER
Procter and Gamble P&G Hygiene and Health care ltd. markets
several leading brands: Whisper sanitary napkins in the Feminine
Hygiene category; Health care products such as Vicks VapoRub, vicks
action 500, Vicks Cough Drops, Vicks Inhaler; skin care and cosmetic
products viz. Old Spice.
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DEALERS
MODE OF TRANSPORTATION
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Conclusion: Both P&G and HUL uses advanced tracking technology to
track the goods and both companies use railways and roadways for
transporting there products. In HUL transportation cost is shared by
HUL and the dealer, where as at P&G, transportation cost is paid by
P&G.
FLEXIBILITY
Conclusion: our group has found that Dealers of HUL are more
satisfied than the dealers of P&G and therefore HUL is a step ahead in
terms of flexibility of placing orders and accepting orders from the
dealers.
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DISTRIBUTION CHANNEL STRUCTURE
Conclusion- Our group has found that H.L.L. has more effective and
efficient distribution network as compared to P & G, which increases
the availability and presence of HUL product. HUL is also given
emphasis on penetrating the rural market as well.
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DEALING WITH UNSOLD & DAMAGED MERCHANDISE
Procter And Gamble- P & G replaces the damaged product with the
new one, it means that the damaged product are replaced by new
product.
Conclusion- Our group has found that both the companies take back
the unsold product however P & G is more flexible in returning the
damaged product as compared to the HUL. Hence P & G is more
flexible here.
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PERFORMANCE APPRAISAL SYSTEM
Conclusion- the conclusion that our group has found that there is
hardly any differences is the performance appraisal methods in both
the companies .both the companies are taking almost the same
measures and same parameters for performance appraisal , however
both the company were not willing to disclosed any changes brought in
performance appraisal system during the past five years .both of the
companies said that there have been change in some areas and which
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has shown positive results, but not willing to give any reasons and
what changes have been brought.
TARGETS
Procter And Gamble- P&G also has different channel members with
specified targets and they are intended to increase sales .P&G also
made changes in channel members during 2001-2006 to increase sales
of the company. The channel members expect ROI depending on there
knowledge and on there performance to. Channel members get credit
period of 30 days. Payment terms of P&G are also flexible to the
channel members and P&G also has flexible payment terms P&G also
offers many discounts to these channel members. P&G has made many
changes to there commercial terms during 2001-2006 to increase
sales.
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also sets targets to there channel members and provides very less
margins to dealers compared to P&G.
SALES FUNCTIONING
Hindustan Unilever Limited : HUL is emphasizing on rural areas
through project Shakti these days and sales also have been increased
and HUL does not have any sales outlets HUL assigns sales territory to
there sales persons according to there skill and experience and assigns
targets to them. Performance appraisal of sales force is done by
appraisal supervisor and it is done through 360 degree appraisal
method, parameter used is performance of the sales personnel . HUL
adopts on the job and off the job training system to there sales force it
is emphasized on improving skill and experience of the sales
personnel. Sales personnel are motivated through incentives and
promotions.
Procter And Gamble: P&G has increased the number of outlets in the
country and the population in the area also increased and there is no
effect on sales. P&G sets targets to there sales force on the basis of
increase or decrease in demand and also according to the previous
sales , sales territories are assigned according to the capabilities of the
sales personnel, responsibility of the sales personnel is to clarify the
doubts of the customer and make sales of the product. Performance
appraisal of sales force is done by the manager by doing meeting with
them parameters of appraisal is increase or decrease in sales it is done
on monthly basis. P&G trains their sales force by on the job training
and training process is emphasized on skill and experience, P&G has
also brought many changes in the training system that has affected its
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sales too. P&G motivates their sales force by providing them with
targets and incentives.
Conclusion; Both P&G and HUL trains their sales force and has a good
performance appraisal system, P&G does appraisal on a monthly basis
depending on increase and decrease of sales where as HUL does it
once in a year.
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RECOMMENDATIONS
Both the companies having good market share in India and it keep on
increasing. Both the co. i.e. HUL and P&G should open exclusive shop.
HUL is already having exclusive shop in Mumbai called SANGAM
STORE. But it is only in India so it should be increased. The employee
should be given uniforms in which the name of the company should be
printed, by doing this the sales people get motivated. These shops
should be opened for 24 hours. They should offer 24 hours free home
delivery system. The delivery vehicle should be attractive the name of
the company should be printed in that so that it becomes the sources
of advertisement.
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They should increase their CSR activities in northern India. At present
they are currently doing their CSR in southern India. So they should
increase their activities in north India also.
SUGGESTIONS
HUL sales growth in june 2004 was decreased due to the problem
with promotion and pricing. Although being the most competitive
product on the basis of the Market Operating Price (MOP), the
shampoos are still not selling much. This is perhaps due to the
bargaining stress on the customer and the weak push given by the
dealer to the particular item, when actually it should be sold like a high
volume product.
Another serious suggestion is that HUL must give good attention to
their all the products rice and all are not getting much attention. The
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dealers don’t provide much support to the customers in making them
understand the real Quality behind them. Either, the technical details
should be presented in a clearer manner or the dealers need to be
educated properly.
LIMITATIONS
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BIBLIOGRAPHY
3. Company’s brochure
4. www.google.co.in
5. www.HUL.com
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ANNEXURE
SPECIMEN
Name
Age
Address
Newspaper Magazines
Television Others _______
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YES NO
YES NO
Personal Wash
Laundary
Skin Care
Oral Care
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Pepsodent ________ Close-up ________
Others ________
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Deodorants
Axe ________ Lakme ________
Rexona ________
Colour Cosmetics
Lakme ________ Others ________
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RETAILER SURVEY QUESTIONNAIRE
a).Yes b). No
.
2. Why don’t you keep the products of Parle in your shop or why
did you stop keeping its products?
Yes No
Personal Wash
Laundary
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Skin Care
Deodorants
Colour Cosmetics
1. Very High
2. High
3. Average
4. Rarely
5. Very Rarely
6. Never
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5. From whom do you purchase your product?
1). Distributor
2). Dealer
3). Agency
4). Wholesaler
1. Excellent
2. Above Average
3. Average
4. Below Average
5. Extremely Poor
a).One
b)Two.
c)Three.
d)More than three.
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8. Which vehicle do they mainly use for delivery?
2) Three wheeler
3) Four wheeler
a) van__ ,b) truck__,c) others__.
_________________________________________________
_________________________________________________
PERSONAL DETAILS:
Name: ___________________________________________
Address: _________________________________________
Cont. No.: ________________________________________
Signature: ________________________________________
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