Amity International Business School, Noida.

Term Paper Report On FMCG Sector. Examiners:- Ms. Luvnica Rustogi Dr. S. Tripathi
Group Members:Ankit Jhanwar Nidhi Jakhar Niketa Kathel Sasanka Jyoti Das

CONTENTS

S.NO 1. 2. 3. 4. 5. 6. 7. 8. 9.

TITLE

PAGE NO.

ACKNOWLEDGEMENT
We would take the privilage of thanking AIBS for giving us the opportunity to work on the term paper project which helped us to learn and boost our knowledge on the FMCG sector.Futher we got help from our mentors Dr. swarnlipi chakroborty and Prof. V.P Kakkar which was very helpful for us to complete our term paper on time. The supervision and support that provided truly helped the progression and smoothness of the term paper project. Besides, this term paper project made us realize the value of working together as a team. The whole project really brought us together to appreciate the true value of friendship and respect of each other.
MEMBERS
ANKIT JHANWAR NIDHI JAKHAR NIKETA KATHEL SASANKA JYOTI DAS

Introduction of the chosen companies

1.

Procter and Gamble

Procter & Gamble (P&G) is a Fortune 500 American multinational corporation headquartered in downtown Cincinnati, Ohio and manufactures a wide range of consumer goods. In 2011, P&G made $82.6 billion dollars in sales. Fortune Magazine ranked P&G at fifth place of the "World's Most Admired Companies" list, which was up from sixth place in 2010. Procter & Gamble is the only Fortune 500 company to issue C Share common stock.

Operations:As of July 1, 2011, the company's operations are categorized into two "Global Business Units" with each Global Business Unit divided into "Business Segments" according to the company's 2011 Annual Report. Dimitri Panayotopoulos is Vice Chairman of Global Business Units.

- Beauty Segment - Grooming Segment - Health Care Segment - Snacks and Pet Care Segment

- Fabric Care and Home Care segment - Baby care and Family Home Care segment

Management and staff The board of directors of Procter & Gamble currently has eleven members: Robert A. McDonald, Angela Braly, Meg Whitman, Johnathan A. Rodgers, Ernesto Zedillo, Scott Cook, Patricia A. Woertz,Susan D. DesmondHellmann, Maggie Wilderotter, W. James McNerney, Jr. and Kenneth Chenault. In March 2011 Rajat Gupta resigned from the board after an SEC accusation of Galleon Group insider trading.
Procter & Gamble

Type

Public company

Traded as

NYSE: PG Dow Jones Industrial Average Component

Industry

Consumer goods

Founded

1837

Headquarters

Cincinnati, Ohio, U.S.

Area served

Worldwide

Key people

Bob McDonald
(Chairman, President and CEO)

Financial Statements

Revenue

US$ 78.938 billion (FY 2010)[1]

Operating income

US$ 16.021 billion (FY 2010)[1]

Net income

US$ 12.736 billion (FY 2010)[1]

Total assets

US$ 128.127 billion (FY 2010)[1]

Total equity

US$ 61.439 billion (FY 2010)[1]

Employees

127,000 (2010)[1]

Website

P&G - The official homepage

2. Hindustan Unilever Limited

Hindustan Unilever Limited (HUL) (BSE: 500696) is India's largest fast moving consumer goods company owned by the European company Unilever. The Anglo-Dutch company Unilever owns a 52% majority stake.

HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and has an employee strength of over 15,000 employees and contributes to indirect employment of over 52,000 people. The company was renamed in June 2007 as Hindustan Unilever Limited.

Hindustan Unilever's distribution covers over 1 million retail outlets across India directly and its products are available in over 6.3 million outlets in the country, nearly 80% of all retail outlets in India. The company claims that two out of three Indians use its many home and personal care products, food and beverages.

Brands:HUL is the market leader in Indian consumer products with presence in over 20 consumer categories such as soaps, tea, detergents and shampoos amongst others with over 700 million Indian consumers using its products. Sixteen of HULs brands featured in the ACNielsen Brand Equity list of 100 Most Trusted Brands Annual Survey (2008). According to Brand Equity, HUL has the largest number of brands in the Most Trusted Brands List. It has consistently had the largest number of brands in the Top 50, and in the Top 10 (with 4 brands).

The company has a distribution channel of 6.3 million outlets and owns 35 major Indian brands. Its brands include Kwality Wall's ice cream, Knorr soups & meal makers, Lifebuoy, Lux, Pears, Breeze, Liril, Rexona, Hamam and Moti soaps, Pureit water purifier, Lipton tea, Brooke Bond (3 Roses, Taj Mahal, Taaza, Red Label) tea, Bru coffee, Pepsodent and Close Up toothpaste and brushes, and Surf, Rin and Wheel laundry detergents, Kissan squashes and jams, Annapurna salt and atta, Pond's talcs and creams, Vaseline lotions, Fair and Lovely creams, Lakm beauty products, Clear, Clinic Plus, Clinic All Clear, Sunsilk and Dove shampoos, Vim dishwash, Ala bleach, Domex disinfectant, Modern Bread, Axe deosprays and Comfort fabric softeners.

Hindustan Unilever Ltd

Type

Public company BSE: 500696

Industry

Fast Moving Consumer Goods (FMCG)

Founded

1933

Headquarters Mumbai, India

Key people

Harish Manwani (Chairman), Nitin Paranjpe(CEO and Managing Director)

Products

Home & Personal Care, Food & Beverages

Revenue

19,987.14 crore (US$4.46 billion) (2010-2011) [1]

Net income

2,305.97 crore (US$514.23 million)

Employees

Over 65,000 direct & indirect employees

Parent

Unilever Plc (52%)

Website

www.hul.co.in

3. Loreal
The L'Oral Group is the world's largest cosmetics and beauty company. With its registered office in Paris and head office in the Paris suburb of Clichy, Hauts-de-Seine, France, it has developed activities in the field of cosmetics. Concentrating on hair colour, skin care, sun protection, make-up, perfumes and hair care, the company is active in the dermatological and pharmaceutical fields and is the top nanotechnology patent-holder in the United States. Board of Directors:Current members of the board of directors of LOral are: Jean-Paul Agon, Francisco Basco, Werner Bauer, Liliane Bettencourt, Franoise Bettencourt Meyers, Peter Brabeck-Letmathe, Charles-Henri Filippi, Xavier Fontanet, Bernard Kasriel, Marc Lacharrire, Jean-Pierre Meyers, Lindsay Owen-Jones, Franck Riboud, Annette Roux and Louis Schweitzer. Management Committee:The management committee includes:- Jean Paul Agon, CEO - Frederic Rose, CEO Loreal USA - Beatrice Dautresme, EVP of corporation communication - Jean Francois Grollier, EVP of Research and Development - Christian Mulliez, EVP of Finances - Jean-Jacques Lebel, President of Consumer Products - Nicolas Hieronimus, President of Professional Products - Geoff Skingsley, EVP of Human Resources

Type

Socit Anonyme

Traded as

Euronext: OR

Industry

Cosmetics

Founded

1909

Founder(s)

Eugne Schueller

Headquarters

Clichy, Hauts-de-Seine,France

Area served

Worldwide

Key people

Jean-Paul Agon (Chairman andCEO), Liliane Bettencourt (Non-executive director and major
shareholder)

Revenue

19.50 billion (2010)[1]

Operating income

3.057 billion (2010)[1]

Profit

2.240 billion (2010)[1]

Total assets

24.04 billion (end 2010)[1]

Total equity

14.87 billion (end 2010)[1]

Employees

66,620 (end 2010)[1]

4.

Dabur

Dabur India Limited has marked its presence with significant achievements and today commands a market leadership status. Our story of success is based on dedication to nature, corporate and process hygiene, dynamic leadership and commitment to our partners and stakeholders. The results of our policies and initiatives speak for themselves.

Leading consumer goods company in India with a turnover of Rs. 2834.11 Crore (FY09) 3 major strategic business units (SBU) - Consumer Care Division (CCD), Consumer Health Division (CHD) and International Business Division (IBD) 3 Subsidiary Group companies - Dabur International, Fem Care Pharma and newu and 8 step down subsidiaries: Dabur Nepal Pvt Ltd (Nepal), Dabur Egypt Ltd (Egypt), Asian Consumer Care (Bangladesh), Asian Consumer Care (Pakistan), African Consumer Care (Nigeria), Naturelle LLC (Ras Al Khaimah-UAE), Weikfield International (UAE) and Jaquline Inc. (USA). 17 ultra-modern manufacturing units spread around the globe Products marketed in over 60 countries Wide and deep market penetration with 50 C&F agents, more than 5000 distributors and over2.8 million retail outlets all over India

Consumer Care Division (CCD) adresses consumer needs across the entire FMCG spectrum through four distinct business portfolios of Personal Care, Health Care, Home Care & Foods

Celebrate Life

Type

Public (NSE, BSE)

Industry

Health Care, Food

Founded

1884

Founder(s)

Dr. S K Burman

Headquarters Dabur Tower, Kaushambi, Sahibabad, Ghaziabad 201010 (UP), India

Area served

Worldwide

Key people

Dr. Anand Burman

Chairman

Mr. Amit Burman

Vice-Chairman

Mr. Sunil Duggal

CEO

Products

Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola & Real

Net income

(INR) 425 Crore (2008-09)

Total assets

(INR) 559 crore (2008-09)

Employees

3000 (Approx.) [1]

Divisions

Dabur Nepal Pvt Ltd (Nepal), Dabur Egypt Ltd (Egypt), Asian Consumer Care (Bangladesh), Asian Consumer Care (Pakistan), African Consumer Care (Nigeria), Naturelle LLC (Ras Al Khaimah-UAE), Weikfield International (UAE), and Jaquline Inc. (USA).

Subsidiaries

Dabur International, Fem Care Pharma, newu

Website

Dabur.com

Principles of Global Business Management (PGBM)

Analysis of International Business Expansion Strategy of 4 companies of FMCG sector

LOREAL United Kingdom

Mizani move brings success MIZANI, the expert professional brand for African and mixed-race
hair was rolled out in the United Kingdom in 2005. Its unique formulations feature natural botanical ingredients, combined with the best in LORAL technologies, specially created by the Chicago-based LOreal Institute for Ethnic Hair and Skin Research. With its comprehensive range of services and its original approach to hairdressers training, MIZANI highlights the beauty of African and mixed-race hair with resolutely modern looks. This unique positioning brought immediate success in the United Kingdom, establishing a strong reputation for the brand.

Canada
Innovative retail concept for Active Cosmetics
The sales performance of Active Cosmetics in Canada (+16% in 2005) reflects the success of a new retail concept: the Dermocosmetic Skincare Centre. Initially introduced in drug stores, this concept enabled the brands to achieve very high growth figures including a+38.6% increase for LA ROCHE-POSAY and confirmed the leadership of VICHY in dermocosmetics.

ITC
ITC's personal care portfolio brings world-class products with clearly differentiated benefits to quality-seeking consumers. ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel UltraPro', 'Vivel' and 'Superia' brands has received encouraging consumer response and is being progressively extended nationally. ITC's state-of-the-art manufacturing facility meets stringent requirements of hygiene and benchmarked manufacturing practices. Contemporary technology and the latest manufacturing processes have combined to produce distinctly superior products which rank high on quality and consumer appeal. Extensive insights gained by ITC through its numerous consumer engagements have provided the platform for its R&D and Product Development teams to develop superior, differentiated products that meet the consumer's stated and innate needs. The product formulations use internationally recognised safe ingredients, subjected to the highest standards of safety and performance.

Procter & Gamble BRAZIL

With the launch in Brazil, head & shoulders is increasing its global footprint and making this highly successful brand available to more consumers around the world. As the market leader, head & shoulders has more than 50 years of scientific research on the scalp and dandruff, and the introduction will provide Brazilians with a wide range of shampoos and conditioners that provide outstanding anti-dandruff performance from the first wash and promote overall scalp health for beautiful hair.In Brazil, the product launch line-up includes 7 Shampoos and 4 conditioners to address a variety Of specific scalp and hair needs. The brand campaign will feature two Brazilian celebrities: actress Malu Mader and actor Marcio Garcia. Head & shoulders was launched in Brazil in November 2010, continuing the successful global expansion of the #1 anti-dandruff shampoo. The product is being sold in all trade channels, from club stores to high frequency stores, including drug chains and department stores.

DABUR
Dabur India Limited has marked its presence with significant achievements and today commands a market leadership status. International Business Expansion (IBE) caters to the health and personal care needs of customers across different international markets, spanning the Middle East, North & West Africa, EU and the US with its brands Dabur & Vatika Growing at a CAGR of 33% in the last 6 years and contributes to about 20% of total sales Leveraging the 'Natural' preference among local consumers to increase share in personal care categories Focus markets: - GCC - Egypt - Nigeria - Bangladesh - Nepal - US High level of localization of manufacturing and sales & marketing.

Marketing Management-A Global Perspective (MMAGP)

o Market Description and Current Marketing Situation with analysis using SWOT & PEST o Marketing Strategy Assessment o Competitive Assessment

SWOT AND PEST ANALYSIS1. LOREAL SWOT ANALYSIS

STRENGTH-Increasing Diversity in

Workforce

-Strong Brand Name for L'Oreal

WEAKNESS-Accused of

Using Banned Chemicals

-Prices are quite high.

OPPORTUNITIES-Brand

-New Innovations and Products -Acquisitions -Appearance Mentality

THREATS-Lower

Prices from Competitors

-Competition for L'Oreal

PEST ANALYSISPOLITICAL: L'Oreal, the world's largest cosmetics company entered the booming Indian hair color market in 1997. Since then, it has been meeting demands of its Indian consumers, competed from local and international companies and expanded from cities to the two and three-tier towns of India ECONOMIC: Buoyed by the 40 per cent growth in its India operations, LOral has identified the country as one of its top-five growing businesses globally. The French cosmetics majors sales in India grew 40.3 per cent last year Jean-Paul Agon, the CEO of LOral, has termed this potential as a big opportunity for the company. The company sees an addition of 70 million new consumers due to growth in per capita income in the worlds population projected by the World Bank. The company plans to open 110 more Body Shop outlets across the globe next year. The share of the Indian market to LOrals turnover of 15.8 billion is small, but is growing, said the company. With other emerging economies, Indias contribution to the growth in the global cosmetics market amounts to 60 per cent. Its portfolio of brands includes the cosmetics range of Lral Paris and Maybelline NY, shampoo range Garnier, luxury products such as Lancme and active cosmetics such as Vichy. Its closest global competitor in the premium make-up segment is Revlon. SOCIAL: Because L'Oral's business is at the center of people's everyday lives and well-being, the Group is closely involved in the life of the communities in which its facilities are located. LOreal operates in India through its wholly owned subsidiary, LOreal India, and has four divisions consumer products, professional products,

active cosmetics and luxury products. The beauty and wellness sector in India is on the brink of a boom, according to research agency AC Nielsen. LOreal has a duty to conduct itself as a socially responsible company and wants to contribute to projects that help the public, in the form of long-term sponsorships and partnerships. These are often local initiatives focusing on specific issues - women and science, solidarity, education - and are consistent with the values that the Group has espoused for almost a century. The aim of these initiatives is to establish a strong foothold in the economic and social life of the countries in question. The most striking and symbolic example of LOreals social commitment is the international corporate program For Women in Science, developed in partnership with UNESCO. TECHNOLOGICAL: Founded by a research scientist, Eugene Schueller, LOreal has always embraced technological innovation. LOreal is convinced that, in the long term, quality and innovation are the only ways to satisfy an increasingly diverse and ever more demanding consumer base

2. PROCTER & GAMBLESWOT ANALYSISSTRENGTH-STRONG FOCUS ON RESEARCH AND DEVELOPMENT

-LEADING MARKET POSITION -DIVERSIFIED PRODUCT PORTFOLIO -STRONG BRAND PORTFOLIO

WEAKNESS-INCREAING

INSTANCES OF PRODUCT RECALLS

-DEPENDS A LOT ON WALLMART STORES AND OTHER BIG CHAINS FOR MAJORITY OF ITS REVENUE

OPPORTUNITES-EXPANSION

IN DEVELOPING MARKETS

-FUTURE GROWTH PLANS -GROWING INDOAN FMCG MARKET

THREATS-REGULATORY ENVIRONMENT -GLOBAL ECONMIC CONDITION -COUNTERFIET GOODS

PEST ANALYSISPOLITICAL-MANUFACTURING TREND IN THE ECONOMY HAS CHANGED TO 4.5 -8.6

PERCENT FOR LAST 5 YEARS -COMPANY SHIFTS THERE BUSINESS OUTSIDE THE COUNTRY DUE TO TAXES

ECONOMIC-NATIONAL

INCOME AND GDP IS GROWING

-THE INFRASTRUCTURE DID NOT SUPPORT THE INDUSTRY -COMPANY DO NOT LIKE TO BUSINESS IN ECONOMIC SITUATIONS

SOCIAL-PEOPLE NOW MUCH CONCERNED ABOUT BRANDED PRODUCTS - AWARENESS IS CREATED

TECHNOLOGICAL-USING LATEST TECHNOLOGY TO ATTRACT CUSTOMERS -NO TECHNOLOGY TRANSFORMATION -COMPETITION FOR USING LATEST TECHNOLOGY

3. HULSWOT ANALYSISSTRENGTH
1. Strong and well differentiated brands with leading share positions 2. Distinctly placed products providing reach to every segment of society. 3. Consumer understanding and systems for building consumer insight 4. Integrated supply chain and well spread manufacturing units 5. Distribution structure with wide reach, high quality coverage The launch of project Shakti has helped HUL to create brand awareness and extensive reach in rural India. 6. Access to Unilever global technology, capability and sharing of best practices from other Unilever companies. 7. Well placed to take advantage of growth in rural India and lower strata of the society through Shakti. 8. It could look at introducing products from its parent company like margarine in order to cater to changing consumer tastes and opportunities in food sector. 9. It can be a leader in exports by positioning itself as a sourcing hub for Unilever companies in various countries.

WEAKNESS1. Price positioning in some categories allows for low price competition like Amul captured Kwalitys market. 2. Limited success in changing eating habits of people. 3. Competitors focusing on a particular product and eating up HULs share, like Nirma focusing on soaps and detergents.

OPPURTUNITIES1. Growing consumer base due to increasing income levels and new consumers from lower strata of the society 2. Untapped market in branded Ayurvedic medicines and other such consumer products. 3. Opportunity in Food sector: changing consumer tastes 4. Expansion of horizons towards more and more countries

THREATS1. Unfavourable raw material prices due to inflation, reducing profitability. 2. Heavy onslaught of competition in the core categories from emerging players like ITC will result in higher advertising expenditure 3. Spurious/counterfeit products in rural areas and small towns. 4. Reduction in real income of consumers due to high inflation.

PEST ANALYSISPOLITICAL HUL NEVER FUND ANY GOVERNMENT OR ANY POLITICAL PARTY MAOISTS ENFORCE STRIKE, CLOSE HINDUSTAN UNILEVERS NEPAL FACTORY

ECONOMIC RECESSION UNVEILS NEW BUSINESS OPPORTUNITIES FOR HINDUSTAN UNILEVER LIMITED: PAUL POLMAN, CEO, UNILEVER 14.5% GROWTH OF FMGC MARKET IN INDIA SHAMPOO SACHET

SOCIAL PEOPLE NOW MUCH CONCERNED ABOUT BRANDED PRODUCTS AWARENESS IS CREATED

TECHNOLOGICAL INNOVATION IS THE MAIN STRATEGY FOR HUL CONSTANT IMPROVEMENT TO MEET UP CONSUMERS DEMANDS

4. ITC SWOT ANALYSIS

STRENGTHS
ITC leveraged it traditional businesses to develop new brands for new segments. For example, ITC used its experience of transporting and distributing tobacco products to remote and distant parts of India to the advantage of its FMCG products. ITC master chefs from its hotel chain are often asked to develop new food concepts for its FMCG business. ITC is a diversified company trading in a number of business sectors including cigarettes, hotels, paper, agriculture, packaged foods and confectionary, branded apparel, personal care, greetings cards, Information Technology, safety matches, incense sticks and stationery.

WEAKNESSES
The company's original business was traded in tobacco. ITC stands for Imperial Tobacco Company of India Limited. It is interesting that a business that is now so involved in branding continues to use its original name, despite the negative connection of tobacco with poor health and premature death. To fund its cash guzzling FMCG start-up, the company is still dependant upon its tobacco revenues. Cigarettes account for 47 per cent of the company's turnover, and that in itself is responsible for 80% of its profits. So there is an argument that ITC's move into FMCG (Fast Moving Consumer Goods) is being subsidised by its tobacco operations. Its Gold Flake tobacco brand is the largest FMCG brand in India - and this single brand alone hold 70% of the tobacco market.

OPPORTUNITIES
Core brands such as Aashirvaad, Mint-o, Bingo! And Sun Feast (and others) can be developed using strategies of market development, product development and marketing penetration. ITC is moving into new and emerging sectors including Information Technology, supporting business solutions. e-Choupal is a community of practice that links rural Indian farmers using the Internet. This is an original and well thought of initiative that could be used in other sectors in many other parts of the world. It is also an ambitious project that has a goal of reaching 10 million farmers in 100,000 villages. Take a look at eChoupal here http://www.itcportal.com/agri_exports/echoupal_new.htm

ITC leverages e-Choupal in a novel way. The company researched the tastes of consumers in the North, West and East of India of atta (a popular type of wheat flour), then used the network to source and create the raw materials from farmers and then blend them for consumers under purposeful brand names such as Aashirvaad Select in the Northern market, Aashirvaad MP Chakki in the Western market and Aashirvaad in the Eastern market. This concept is tremendously difficult for competitors to emulate. Chairman Yogi Deveshwar's strategic vision is to turn his Indian conglomerate into the country's premier FMCG business. Per capita consumption of personal care products in India is the lowest in the world offering an opportunity for ITC's soaps, shampoos and fragrances under their Wills brand.

THREATS
The obvious threat is from competition, both domestic and international. The laws of economics dictate that if competitors see that there is a solid profit to be made in an emerging consumer society that ultimately new products and services will be made available. Western companies will see India as an exciting opportunity for themselves to find new market segments for their own offerings. ITC's opportunities are likely to be opportunities for other companies as well. Therefore the dynamic of competition will alter in the medium-term. Then ITC will need to decide whether being a diversified conglomerate is the most competitive strategic formation for a secure future. ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of India Limited'. Its beginnings were humble. A leased office on Radha Bazaar Lane, Kolkata, was the centre of the Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000

5. DABUR SWOT ANALYSISSTRENGTH-Strong presence in well defined niches(like value added Hair Oil and Ayurvedaspecialties) -Core knowledge of ayurveda as competitive advantage -Strong Brand Image -Product Development Strength -Strong Distribution Network -Extensive Supply Chain -IT Initiatives -R & D a key strength

WEAKNESS-Seasonal Demand( like chyawanprashin winter and Vatika not in winter) -Low Penetration(Chyawanprash) -High price(Vatika) -Limited differentiation (Vatika) -Unbranded players account for the 2/3 rd of the total market (Vatika)

OPPORTUNITIES-Untapped Market (Chyawanprash) -Market Development -Export opportunities.

-Innovation -Increasing income level of the middleclass -Creating additional consumption pattern

THREATS-Existing

Competition

-New Entrant -Threats from substitute

PEST ANALYSISPOLITICAL-TAXATION POLICY -ENVIRONMENTAL PROTECTION LAW -EMPLOYMENT LAWS

ECONOMICAL-INFLATION
- EMPLOYMENT -DISPOSABLE INCOME -BUSINESS CYCLES -ENERGY AVAILABILITY AND COST

SOCIAL-DEMOGRAPHICS
-DISTRIBUTION OF INCOME -SOCAIL MOBILITY -LIFESTYLE CHANGES -CONSUMERISM -LEVELS OF EDUCATION

TECHNOLOGICAL-NEW DISCOVERIES AND INNOVATION -SPEED OF TECHNOLOGY TRANSFER -INTERNET -INFORMATION TECHNOLOGY

MARKETING STATEGY ASSESSMENT OF FMCG SECTORPeople powerTotal commitment from top leadership, keeping in mind that rural marketing is a long-term relationship, is imperative - the successes of Hindustan Lever and ITC are proof of this statement. But even more important is the need for a dedicated task force.

Rural marketing efforts need special mindsets, which many of the urban-oriented management graduates who are at the helm of affairs at most organizations do not possess. A separate marketing and sales vertical headed by people with passion and commitment to rural marketing and supported by a field team that can face the rough and tough of the vast countryside with courage and conviction is a must. The best bet is to recruit students from specialized institutes such as the Indian Institute of Rural Management, or at least, management graduates who have studied the subject as an elective.

Many of these are students from small towns, people with fire in their bellies who want to prove themselves in big companies and have no issues about working in smaller markets. Pay them well - remember, you pay peanuts, you get only monkeys - and discuss the path their careers are likely to take in the organization. And send them out in the field only after thorough training. Ensure the consistency of the team involved in any project, until the completion of a specific task. Recently, we were involved with two big clients. In both cases, the teams that briefed us in the initial stages and participated enthusiastically in the campaign were shifted out midway, in keeping with their companies' policy of shifting and promoting people. The teams that succeeded felt no ownership of the campaigns they had not initiated. What started as a great rural marketing initiative has been relegated to the dustbin... the fate of many rural marketing initiatives in the country.

Goals are goodEarly on in the campaign, define your objective: is it a tactical effort to achieve increased sales in specific areas during a specific time, or do you want to build a strong equity for your brand in rural India? Our experience with FMCG companies is that they are more interested in the first choice. Most of them have previously appointed vendors who implement the company's ideas blindly, be they van campaigns or below-the-line activities. There is very little effort to tailor whatever communication is made in such efforts, to suit the local audience or fit it with the overall campaign efforts in the mass media. This invariably leads to less than satisfactory results in terms of awareness of the brands and long-term impact of the efforts in the targeted markets. If you are interested in the second alternative, a comprehensive brand building strategy in rural India, with both short term and long term goals, is a must.

Know your customersA good place to begin is studying the mindset of your customers, so you can create a customized plan of action. All too often, clients insist their knowledge of their customers (based on studies of urban India) is enough on which to base an action plan. Our experience shows that the attitudes, aspirations and fears of rural customers, with regard to products and brands, are very different from their urban counterparts. Research can give you invaluable ideas for new product development as well as new methods of reaching your target audience. The refrigerator with standby power for 12 hours, pressure cookers with two handles and a radio with key-winding mechanism are all the result of research. More and more companies turn to the local haats to sell their products. While haats offer opportunities to target consumers from several villages at one place, and to that extent make your effort cost-effective, ensure that the people who patronise these haats are the kind who will buy your brand. For instance, we recently conducted a survey among some haats in Tamil Nadu, with some interesting results. The haatswere popular with the poorest agricultural labourers who consciously buy the duplicate, spurious products that are sold in these bazaars, since they can't afford the real thing. It is estimated that FMCG companies lost more than Rs 10,000 crore (Rs 100 billion) to spurious products, mostly sold through such local haats and bazaars.

Ensure availabilityMost anecdotes about rural marketing centre on the distribution aspect - the humongous task of physically reaching your product to over 600,000 villages, most of them without motor able roads. But it's not really as nightmarish as it is made out to be, at least keeping in mind the present goals of marketing companies in rural India. We've all heard about the shampoo sachets that are available in even the smallest villages. How does that happen? It's a direct result of rising aspirations, fuelled by television commercials. The consumer demands the product from the local shopkeeper, who then buys the products from the nearest feeder markets

MARKETING STRATEGY OF LOREALA. Customer Satisfaction (Product; Price)

The LOreal Group is known for their continuous innovation in order to improve the quality of their products and the services they have to offer to their consumers. Part of their strategic plan is to cater to the best interest of their costumers, in other words, costumer satisfaction. Through giving a wide variety of products, consumers have a whole gamut of products and services that they can choose from and which best serves their preference. The range of their prices caters to the demands of women, from the younger ones to the aging, from the affluent to those with lower budget for cosmetic products. Through constant research and passion for innovation, the LOreal Group best caters to the demands of women of different cultures. The Company also sees to it that they know the latest trend, or better yet, set the trend in the market as to attract more consumers.

B. Control of the Company

A very vital aspect in the success of a company is how their leaders handle and run the business. In fact, the LOreal Group is very particular in the governance of the Company. The Board directors and the Board members are well aware of all of their duties required by their respective functions and of their collective mission, for it is in their hands that the Companys future depends on. The Board members are also obliged to act with due care and attention to their duties in order to carry out their responsibilities. Also expected from the Board is the strategic orientation of the control and correct running of the Company. Any transaction of the Board Members may directly affect the LOreal groups and so they are expected to act according to whats expected of them.

C. Worldwide Marketing (Place of Distribution; Promotion)

Part of the LOreal Groups strategic plan is the marketing of their products worldwide. From the bloom of LOreal during its primary stage, the Company already catered to the demands of women worldwide. In line with this, they are also well aware of the diversities of women around the world. Part of this strategy is to formulate products that suit other women from other parts of the world. Through research and development of their products, the LOreal group has already covered most parts of the globe and still got high approval ratings from their clients. Just recently, the LOreal Groups received the Diversity Best Practices 2004 Global Leadership Award for embracing diversity, not only in their employees, but also in their consumers (Anonymous, 2004). The Companys taking consideration of women of color is especially appreciated by its consumers for they are also being given the chance to enhance their features

and embrace their diversity without having to conform with the traditional concept of beauty, particularly that of the white Caucasian women. The LOreal Group also has employees who are considered minorities, such as the women and people of color. Valuing of the peoples culture and ideas is important to the LOreal Group, in order to best serve the interest of the consumers, the employees and the Company.

D. Impeccable Advertising (Promotion)

During the early days of advertising, LOreal commissioned promotional posters from various graphic artists to publicize the Companys products. The 1950s brought about a new advertising medium, particularly the movies. LOreal made its on-screen debut during this period and in 1953 won an award advertising Oscar, the first in a long series of awards. Today, LOreal takes on actresses or different personalities of all ages that best exudes the vision of the Company. Famous personalities enable average individuals to relate to their personal lives, that they can look as good, and so ensures higher sales.

COMPETITIVE ASSESMENT STRATEGY OF FMCG SECTORCompetitive Strategy consists of move of companies in order to attract customers. With stand competitive pressures and strengthen an organizations market position. The main objective of Competitive Strategy is to generate a competitive advantage, increase the loyalty of customers and to beat competitors. Five main competitive strategies are: Overall low cost leadership strategy cost providers strategy differentiation strategy low cost strategy differentiation strategy

Here competitive strategy varies from sector to sector and company to company. Thus, it is not easy to predict a single or to find a single strategy for the whole sector. When we come on to FMCG Sector main strategies lay behind market strategies, cost, and quality strategies. Here in this report you are going to get information about such type of strategies of FMCG giants.

Economic Analysis (EA) a. Nature of Competition (Number of companies, market share, market dominance, entry and exit barriers etc.) b. Impact of change in the National Income on the growth of the sector. c. Impact on the performance (revenue) of chosen sector due to change in technology, foreign investment and Government Policies d. Major Mergers, collaborations or Takeovers that have taken place in the sector.

Nature of competition in FMCG sector

NUMBER OF COMPANIES-

1. HUL 2. P&G 3. LOREAL 4. DABUR

MARKET SHARE -

MARKET SHARE OF HUL COMPARED TO ITS COMPETITORS

MARKET DOMINANCE-

MARKET DOMINANCE OF HUL SHAMPOO CAMPARED TO OTHER BRANDS

MERGERS AND TAKEOVERS IN FMCG SECTOR-

1. HLLs mergers with TOMCO, Lakme, Brook Bond Lipton India, Pond's India. 2. P&G and Gillette 3. Dabur acquired Balsara for 143 crores 4. HLL merge with unilever. 5. LOral purchased Synthlabo in 1973 to pursue its ambitions in the pharmaceutical field. Synthlabo merged with Sanofi in 1999 to become SanofiSynthlabo. Sanofi-Synthlabo merged with Aventis in 2004 to become SanofiAventis. 6. On 17 March 2006, L'Oral purchased cosmetics company The Body Shop for 652 million. 7. Nestle holds 29.7% stakes of LOreal.

Impact of change in the National Income on the growth of the FMCG sectorAt macro level Indian economy will be equanimous to remain resilient at 8.5% growth. This economic growth would impact large number of population, thus leading to more money in hands of the consumer. Changes in the demographic composition of the population and thus market will continue to impact the Indian FMCG industry. One of the major challenges which FMCG has to face is rural marketing. Rural India is vast with immense opportunities. 70% of Indian population resides in rural areas and these can bring in much needed volume and help FMCG companies to achieve higher growth. This should be a melody for FMCG companies who have reached saturation point in urban India. The focus is on rural sector is not only because they are large in number but also that they are becoming richer day by day. This is shown by statistics given by National Council of Applied Economic Research (NCAER):

Lower income group is expected to shrink from over 60% 1996 to 20% by 2007 and higher income group is expected to rise by more than 100%. This highlights immense growth opportunities for FMCG sector in coming years. Rural India sounds attractive but FMCG companies have to face difficulties in order capture this segment. One major difficulty which will arise would be that most FMCG players do not have critical size for going out for rural marketing.

Organizational Theory & HRM (OT&HRM) a. HRM Policies and Best Practices followed in the sector b. Cross Analysis of various data related to any one major aspect such as employee turnover/satisfaction/

training etc.
Organizational Theory & HRM (OT&HRM) a) HRM Policies and Best Practices followed in the sector
HR trends in FMCG firms
HR IN FAST moving consumer goods (FMCG) firms is progressively being pushed down the line, providing an opportunity to build partnerships and ensure business units exhibit a level of self-management when it comes to HR responsibilities. A recent survey of FMCG companies found that even in companies with several sites, HR still commonly remains a centralized function. As company size increases to more than 1,000 employees, HR tends to take on a more decentralized structure, often with site HR managers reporting into a central HR head office. The survey examined the HR practices of 58 FMCG companies such as Cadbury Schweppes, Coca-Cola Amatil, Colgate-Palmolive, GlaxoSmithKline, Lion Nathan and Unilever. It also found that training and development was most common HR KPI for coming 12 months (45 per cent), followed by staff retention (29 per cent), culture change (21 per cent) and performance management (21 per cent). The survey also revealed that paid parental leave is becoming commonplace, with 54 per cent of FMCG companies providing paid parental leave for females with 35 per cent also providing a similar policy for males. Another 21 per cent indicated an intention to introduce paid parental leave in the next 12 months. Financial incentives, training and development and career development opportunities rated as the most effective retention strategies, while the median staff turnover rate for FMCG firms was 11 per cent (comprising 8 per cent voluntary departures and 3 per cent involuntary departures). The survey found the majority of FMCG firms within Australia have a formal redundancy policy. Interestingly these policies are generally not written into employee contracts and twothirds of firms do not publicize the fact that they have redundancy policies.

Published by FMCG Careers, the FMCG HR Benchmarking Survey Australia & New Zealand 2004 examined 18 areas of HR practice from resourcing and employee retention to performance management, remuneration policy, succession planning and work-life balance policies.

b) Cross Analysis of various data related to any one major aspect such as employee turnover/satisfaction/training etc

Procter & Gamble

Training & Skills Development
Procter & Gamble Inc.'s training and skills development program is rated as exceptional. Employees receive tuition subsidies for courses related to their position. (Employers cover up to 100% of tuition). (Employers pay up to $5,000 in subsidies). Employees may also receive tuition subsidies for courses unrelated to their current position. (Employers cover up to 100% of non-related tuition). (Employers pay up to $5,000 in tuition subsidies for non-related courses). In addition to tuition subsidies, Procter & Gamble assists employees with in-house training programs; online training programs; online employee skills inventory; formal mentoring program; career planning services; new employee orientation program; formal management training program. Through its online training program, Procter & Gamble Canada offers over 1,000 courses on a wide variety of subjects. In addition to providing mandatory diversity training for all its employees, the company has a long history of supporting a variety of employeeled in-house initiatives to address specific workplace issues, including: a Women's Network; the French Canadian Network; the Asian Professional Network; the Gay, Bi-Sexual and Lesbian Employee Network; the Black Professional Network; and the Latin Network. Procter & Gamble Canada is is also a longstanding supporter of the "Inroads" and "Career Bridge" programs, providing student internships for visible minority Canadians.

HUL
Training and development
Learning is an integral part of life at Unilever & there are many ways in which you can develop your skills, both professional & personal.

On the job
You'll learn much of what you need to know by working with knowledgeable colleagues and receiving regular coaching and feedback. Wherever you join, in whatever capacity, you'll have a wide variety of experiences developing skills relevant to your job and giving you an overview of how our company works.

Professional skills
Specific programmes ensure you build expertise in your chosen career. The courses often use e-learning that enables you learn at your own pace and take control of your development. In some areas you can study for professional qualifications and, as you progress, you'll develop your leadership capabilities.

Continual update
Each function has its own Academy a team that continually updates its professional learning curriculum. E-learning modules are then made available on a dedicated intranet portal. Here you'll also find the very latest news, articles and thinking. Essentially, everything you need to keep in touch with the business.

Personal development
Passion, energy and creative thinking are traits that you'll already have when you join. But equally important is the ability to understand who you are as an individual and what you want to achieve from your career. We offer a whole range of personal development opportunities which can be tailored to your specific goals.

Essential IT Tools & Techniques for Global Managers (EITTGM) a. Use Statistical Tools & Techniques (predominantly MS Excel & SPPS) to analyze various facts, figures & trends as well as carry out projections & sensitivity analysis. b. Analysis of ICT trends in the sector

ICT trend in FMCG sector

An extensive amount of research has been done in the important domain of Supply Chain Management (SCM) and its Integration with Information and Communication Technology (ICT). However pragmatic insight to address the SCMICT integration challenges based upon real world contemporary case studies are scant .This work targets Fast Moving Consumer Good (FMCG) companies located in Pakistan. This paper examines data from the FMCG sector in India and proposes a model for Key Realization Concepts for Supply Chain Success (KRCSCS).During the course of this study it was discovered that those FMCG companies which integrated ICT with SCM in a sequentially structured approach, took shorter learning curves, had realistic Return on Investment (ROI) expectations, and where the top management demonstrated greater appreciation and commitment towards technology as a solution facilitator, proved to be more successful than those who did not have these characteristics. It is concluded that successful integration of ICT and SCM requires strategic commitment by the stakeholders and the top management, well thought and methodical plans of integration, rational ROI potential, and up to date technical knowhow. It is commonly acknowledged that ICT is and will be an increasing element of managing logistical operations in networks. However, in Pakistan there is less empirical evidence describing actual benefits of ICT in SCM due to lack of in-depth case studies analyzing the best cases and recording the impacts and benefits of ICT and capturing the researchers point of view. In general, even in the developed countries research has targeted success of businesses implementing technology but few have catered to the negative impact. ICT and SCM integrated solutions can be classified in the following two categories based upon various propositions suggested in literatures

Class 1: Successful e-biz solutions for improving customers relationship. Class 2: Solutions that identify critical activities such as planning, collaboration, Business Process Reengineering and Customer Request Resolution.

Quantitative Applications in Management (QAM)

Practical Application of all methods learnt on some form of live data collected for the sector/ company(s) therein.

QAM
Research Objective:- To analyse the sale of one shampoo product from each
of the chosen shampoo brand.

Research design-:
The method of data collection is doing survey from retailers of Noida by a questionnaire It is a statistical study required for quick results. The research environment was the field setting as the method of study was analyzing the data collected by conducting a survey.

Sampling procedure-:
Sample size- 20 Collection of database-: primary and Secondary source. Primary data-: Data is collected through survey of retail stores of shampoo dealers by filling a questionnaire. Secondry data-: Through Net Through magazines

Questionnaire
1. How would you rate the following brands in shampoo? a)Procter and Gamble 1___2___3___4___5___ b)Hindustan Unlilever 1___2___3___4___5___ c)Dabur d)Loreal 1___2___3___4___5___ 1___2___3___4___5___

2. Number of shampoo sold in last one month? a)Procter and Gamble b)Hindustan Unlilever c)Dabur d)Loreal ____ ____ ____ ____

3. Customers preference in sachets or bottles? a)Procter and Gamble 1___2___3___4___5___ b)Hindustan Unlilever 1___2___3___4___5___ c)Dabur d)Loreal 1___2___3___4___5___ 1___2___3___4___5___

4. How would you rate the following brands for customers problem resolution? a)Procter and Gamble 1___2___3___4___5___ b)Hindustan Unlilever 1___2___3___4___5___ c)Dabur d)Loreal 1___2___3___4___5___ 1___2___3___4___5___

5. How would you rate the following brands in claim settlement? a)Procter and Gamble 1___2___3___4___5___ b)Hindustan Unlilever 1___2___3___4___5___ c)Dabur d)Loreal 1___2___3___4___5___ 1___2___3___4___5___

In Ranking:-

1 For ______ Poor

2 For ______ Average

3 For ______ Good

4 For______ Very good

5 For ______ Excellent

Based on the survey done on various shampoo brands sale and usage by the customers of both urban and semi-urban areas the following observations were found:-

Customer Usage
5 4 3 2

Customer Usage

1 0
P&G HUL Loreal Dabur

Accounting for Managers (AFM)

Analysis of Financial Statements of selected 5 companies FMCG sector.