SUMMER TRAINING REPORT

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, Luc now !"##$%"#&&'

SUBM(TT)* B+ M,-*. .A-(* Roll.No-0915870041 MBA -3rd Sem

SUBM(TT)* T, */. 0.1.B-AT(A Director General

JANHIT INSTITUTE OF EDUCATION & INFORMATION GREATER NOIDA

(Affiliated by Uttar Prades Te! "i!al U"i#ersity$ %&!'"()*

ACKNOWLEDGEMENT

I wish to express my heartfelt appreciation to many who have contributed to this study. I would like to thank to Faculty Guide, JIEI, Greater Noida for her valuable uidance. I wish to express my ratitude to my faculty uide, who provided me with constant impetus to complete this pro!ect.

MOHD. WAHID

TABLE OF CONTENTS
Executive Summary Introduction Company Profile Current Mar et Context Export! Portfolio! Corporate Mana"ement #e!earc$ % Innovation Centre Safety % &ealt$ Policy Mar et Strate"ie! &LL 'i!tri(ution Net)or Pioneerin" C$annel! &indu!tan *nilever Ltd+ Competitor! #e!earc$ Met$odolo"y Future Scope Findin"!, 'ata Analy!i! % Conclu!ion #ecommendation! Su""e!tion! Limitation! Bi(lio"rap$y -Annexure. /ue!tionnaire

E0EC*TI1E S*MMA#2

"industan #nilever $imited %"#$& is India's lar est Fast (ovin )onsumer Goods )ompany, touchin the lives of two out of three

Indians with over *+ distinct cate ories in "ome , -ersonal )are -roducts and Foods , .evera es. /hey endow the company with a scale of combined volumes of about 0 million units and sales of 1s.2+, +++ crores.
"#$ is also one of the country's lar est exporters3 it has been reco ni4ed as a Golden 5uper 5tar /radin "ouse by the Government of India.

"ence, research

aims is that to study the existin marketin addressin plans and understandin of the advertisin

marketin

practices, emer in

companies business strate y with

its profile. /he main recommendations have been made on the messa e to the customers. 6n attempt "#$ products. In another has been made to formulate the communication in a way to build it on a platform of the basic need for buyin recommendation the su products has been iven a chance. estions towards better dealer interest in "#$

/he research is based primarily on primary data3 however few references to industry fi ures from secondary data have been made. 7ata has been collected throu h in depth interviews and administered 8uestionnaires.

T$e !tudy $a! "iven t$e re!earc$er! an in!ide of t$e Con!umer dura(le Indu!try and an opportunity to u!e t$e t$eoretical no)led"e in live pro3ect+

INT#O'*CTION
9ver 2++ years: link with India. In the summer of 2;;;, visitors to the <olkata harbor , noticed crates full of 5unli ht soap bars, embossed with the words =(ade in En land by $ever .rothers=. >ith it, be an an era of marketin branded. Fa!t Movin" Con!umer 4ood! -FMC4.+

5oon after followed $ifebuoy in 2;?@ and other famous brands like -ears, $ux and Aim. Aanaspati was launched in 2?2; and the famous 7alda brand came to the market in 2?BC.

In 2?B2, #nilever set up its first Indian subsidiary, "industan Aanaspati (anufacturin )ompany, followed by $ever .rothers India

$imited %2?BB& and #nited /raders $imited %2?B@&. /hese three companies mer ed to form "#$ in November 2?@D3 "#$ offered 2+E of its e8uity to the Indian public, bein the first amon the forei n

subsidiaries to do so. #nilever now holds @2.@@E e8uity in the company. /he rest of the shareholdin B;+,+++ individual shareholders is distributed amon and financial about

institutions.

/he erstwhile .rooke .ond:s presence in India dates back to 2?++. .y 2?+B, the company had launched 1ed $abel tea in the country. In 2?2*, .rooke .ond , )o. India $imited was formed. .rooke .ond

!oined the #nilever fold in 2?;0 throu h an international ac8uisition. /he erstwhile $ipton:s links with India were for ed in 2;?;. #nilever ac8uired $ipton in 2?C*, and in 2?CC $ipton /ea %India& $imited was incorporated.

-ond:s %India& $imited had been present in India since 2?0C. It !oined the #nilever fold throu h an international ac8uisition of )hesebrou h -ond:s #56 in 2?;D.

5ince the very early years, "#$ has vi orously responded to the stimulus of economic rowth. /he rowth process has been

accompanied by !udicious diversification, always in line with Indian opinions and aspirations.

/he liberali4ation of the Indian economy, started in 2??2, clearly marked an inflexion in "#$:s and the Group:s rowth curve. 1emoval

of the re ulatory framework allowed the company to explore every sin le product and opportunity se ment, without any constraints on production capacity.

5imultaneously, dere ulation permitted alliances, ac8uisitions and mer ers. In one of the most visible and talked about events of India:s

corporate history, the erstwhile /ata 9il (ills )ompany %/9()9& mer ed with "#$, effective from 6pril 2, 2??B. In 2??@, "#$ and yet another /ata company, $akme $imited, formed a @+F@+ !oint venture, $akme $ever $imited, to market $akme:s marketGleadin cosmetics

and other appropriate products of both the companies. 5ubse8uently in 2??;, $akme $imited sold its brands to "#$ and divested its @+E stake in the !oint venture to the company.

"#$ formed a @+F@+ !oint venture with the #5Gbased <imberly )lark )orporation in 2??0, <imberlyG)lark $ever $td, which markets "u ies

7iapers and <otex 5anitary -ads. "#$ has also set up a subsidiary in Nepal, Nepal $ever $imited %N$$&, and its factory represents the lar est manufacturin investment in the "imalayan kin dom. /he N$$

factory manufactures "#$:s products like 5oaps, 7eter ents and -ersonal -roducts both for the domestic market and exports to India.

/he 2??+s also witnessed a strin

of crucial mer ers, ac8uisitions and

alliances on the Foods and .evera es front. In 2??*, the erstwhile .rooke .ond ac8uired <othari General Foods, with si nificant interests in Instant )offee. In 2??B, it ac8uired the <issan business from the #. Group and the 7ollops Icecream business from )adbury India.

6s a measure of backward inte ration, /ea Estates and 7oom 7ooma, two plantation companies of #nilever, were mer ed with .rooke .ond. /hen in July 2??B, .rooke .ond India and $ipton India mer ed to form .rooke .ond $ipton India $imited %..$I$&, enablin and ensurin reater focus

syner y in the traditional .evera es business. 2??0

witnessed ..$I$ launchin the >all:s ran e of Fro4en 7esserts. .y the end of the year, the company entered into a strate ic alliance with the <wality Icecream Group families and in 2??@ the (ilkfood 2++E Icecream marketin and distribution ri hts too were ac8uired.

Finally, ..$I$ mer ed with "#$, with effect from January 2, 2??D. /he internal restructurin culminated in the mer er of -ond:s %India&

$imited %-I$& with "#$ in 2??;. /he two companies had si nificant overlaps in -ersonal -roducts, 5pecialty )hemicals and Exports businesses, besides a common distribution system since 2??B for -ersonal -roducts. /he two also had a common mana ement pool and a technolo y base. /he amal amation was done to ensure for the Group, benefits from scale economies both in domestic and export markets and enable it to fund investments re8uired for a buildin new cate ories. ressively

In January *+++, in a historic step, the

overnment decided to award

C0 per cent e8uity in (odern Foods to "#$, thereby be innin divestment of

the

overnment e8uity in public sector undertakin s %-5#&

to private sector partners. "#$:s entry into .read is a strate ic extension of the company:s wheat business. In *++*, "#$ ac8uired the overnment:s remainin stake in (odern Foods.

In *++B, "#$ ac8uired the )ooked 5hrimp and -asteurised )rabmeat business of the 6mal am Group of )ompanies, a leader in value added (arine -roducts exports.

10

COMPAN2 P#OFILE
/he mission that inspires "#$:s BD,+++ employees, includin over 2,B@+ mana ers,

is to =add vitality to life.= "#$ meets everyday needs for nutrition, hy iene, and personal care with brands that help people feel ood, look ood and et more out of life. It is a mission "#$ shares with its parent company, #nilever, which holds @2.@@E of the e8uity. /he rest of the shareholdin individual shareholders and financial institutions. is distributed amon B;+,+++

"#$:s brands G like $ifebuoy, $ux, 5urf Excel, 1in, >heel, Fair , $ovely, -ond:s, 5unsilk, )linic, -epsodent, )loseGup, $akme, .rooke .ond, <issan, <norrG

6nnapurna, <wality >all:s H are household names across the country and span many cate ories G soaps, deter ents, personal products, tea, coffee, branded staples, ice cream and culinary products. /hey are manufactured in close to ;+ factories. /he operations involve over *,+++ suppliers and associates. "#$:s distribution network, comprisin about C,+++ redistribution stockists, directly covers

the entire urban population, and about *@+ million rural consumers.

"#$ has traditionally been a company, which incorporates latest technolo y in all its operations. /he "industan $ever 1esearch )entre %"$1)& was set up in 2?@;, and now has facilities in (umbai and .an alore. "$1) and the Global /echnolo y )entres in India have over *++ hi hly 8ualified scientists and technolo ists, many with postGdoctoral experience ac8uired in the #5 and Europe.

"#$ believes that an or anisation:s worth is also in the service it renders to the community. "#$ is focusin on health , hy iene education, women empowerment,

11

and water mana ement. It is also involved in education and rehabilitation of special or underprivile ed children, care for the destitute and "IAGpositive, and rural development. "#$ has also responded in case of national calamities I adversities and contributes throu h various welfare measures, most recent bein the villa e

built by "#$ in earth8uake affected Gu!arat, and relief , rehabilitation after the /sunami caused devastation in 5outh India.

9ver the last three years the company has embarked on an ambitious pro ramme, 5hakti. /hrou h 5hakti, "#$ is creatin women, thereby improvin microGenterprise opportunities for rural in rural

their livelihood and the standard of livin

communities. 5hakti also includes health and hy iene education throu h the 5hakti Aani -ro ramme, and creatin access to relevant information throu h the i5hakti

community portal. /he pro ramme now covers about @+,+++ villa es in 2* states. "#$:s vision is to take this pro ramme to 2++,+++ villa es impactin over a 2++ million rural Indians. the lives of

"#$ is also runnin

a rural health pro ramme H $ifebuoy 5wasthya )hetana. /he rural

pro ramme endeavtheirs to induce adoption of hy ienic practices amon Indians and aims to brin

down the incidence of diarrhoea. It has already touched

C+ million people in approximately 2@+++ villa es of ; states. /he vision is to make a billion Indians feel safe and secure. If "industan $ever straddles the Indian corporate world, it is because of bein sin leGminded in identifyin itself with Indian

aspirations and needs in every walk of life.

12

&IN'*STAN *NILE1E# LIMITE' IN'IA5S LA#4EST FMC4 COMPAN2

13

FINANCIAL O1E#1IE6

14

Hindustan Lever Limited S are !"din# $attern Flls 13.7 Domestic Fls 14.8

Unilever 51.6

Individual 19.9
H ! "#$it% &a'ital - 50 Mn ( Mar)et &a'itali*ation - 7+300 Mn (

15

P/)S)2T MA/1)T(23 ST/AT)3+4

Mission4 Hind$*tan nile,er !imited mi**ion i* to add -italit% to li.e. /e meet e,er%da%

need* .or n$trition+ 0%1iene+ and 'er*onal care 2it0 3rand* t0at 0el' 'eo'le .eel 1ood+ loo) 1ood and 1et more o$t o. li.e. Policy4 H ! has earned a reputation for conductin its business with inte rity and with
respect for the interests of those their activities can affect. /his reputation is an asset, !ust as real as their people and brands. /heir first priority is to be a successful business and that means investin for rowth and balancin shortGterm and lon Gterm interests. It also means carin about their

consumers, employees and shareholders, their business partners and the world in which we live.

4rom H ! S'o)e*'er*on 5/o succeed re8uires the hi hest standards of behavior

from all of us. /he eneral principles contained in this )ode set out those standards. (ore detailed uidance tailored to the needs of different countries and companies

will build on these principles as appropriate, but will not include any standards less ri orous than those contained in this )ode. >e want this )ode to be more than a collection of hi hGsoundin statements. It

must have practical value in their dayGtoGday business and each one of us must

16

follow these principles in the spirit as well as the letterJ. ref: business world magazine.

,beying the Law H ! companies and employees are re8uired to comply with the laws and
re ulations of the countries in which they operate.

)m5loyees

H ! is committed to diversity in a workin environment where there is

mutual trust and respect and where everyone feels responsible for the performance and reputation of the company. "#$ will recruit, employ and promote employees on the sole basis of the 8ualifications and abilities needed for the work to be performed.

H ! are committed to safe and healthy workin

conditions for all

employees. >e will not use any form of forced, compulsory or child labour.

H ! are committed to workin with employees to develop and enhance

each individual:s skills and capabilities.

H ! respect the di nity of the individual and the ri ht of employees to

freedom of association.

H ! will maintain

ood

communications

with

employees throu h

company based information and consultation procedures.

17

6onsumers
"#$ is committed to providin branded products and services which consistently

offer value in terms of price and 8uality, and which are safe for their intended use. -roducts and services will be accurately and properly labelled, advertised and communicated.

Shareholders
"#$ will conduct its operations in accordance with internationally accepted principles of ood corporate overnance. /hey will provide timely, re ular and reliable

information on their activities, structure, financial situation and performance to all shareholders.

Business Partners H ! is committed to establishin mutually beneficial relations with their suppliers,
customers and business partners. In their business dealin s they expect their partners to adhere to business principles consistent with their own.

6ommunity (nvolvement H ! strives to be a trusted corporate citi4en and, as an inte ral part of society, to
fulfill their responsibilities to the societies and communities in which they operate.

Public Activities H ! companies are encoura ed to promote and defend their le itimate business
interests. "#$ will coGoperate with overnments and other or anisations, both

directly and throu h bodies such as trade associations, in the development of

18

proposed le islation and other re ulations which may affect le itimate business interests.

H ! neither supports political parties nor contributes to the funds of roups whose
activities are calculated to promote party interests.

The )nvironment H ! is committed to makin continuous improvements in the mana ement of their
environmental impact and to the lon erGterm business. oal of developin a sustainable

H ! will work in partnership with others to promote environmental care, increase

understandin of environmental issues and disseminate ood practice.

(nnovation
In their scientific innovation to meet consumer needs they will respect the concerns of their consumers and of society. /hey will work on the basis of sound science, applyin ri orous standards of product safety.

6om5etition
"#$ believes in vi orous yet fair competition and supports the development of appropriate competition laws. /heir companies and employees will conduct their operations in accordance with the principles of fair competition and all applicable re ulations.

Business (ntegrity H ! does not

ive or receive, whether directly or indirectly, bribes or other ain. No employee may offer, ive or

improper advanta es for business or financial

19

receive any

ift or payment which is, or may be construed as bein , a bribe. 6ny

demand for, or offer of, a bribe must be re!ected immediately and reported to mana ement.

H ! accountin records and supportin documents must accurately describe and

reflect the nature of the underlyin transactions. No undisclosed or unrecorded account, fund or asset will be established or maintained.

6onflicts of (nterests All "#$ employees are expected to avoid personal activities and financial interests
which could conflict with their responsibilities to the company.

H ! employees must not seek ain for themselves or others throu h misuse of
their positions.

20

Compliance 7 Monitorin" 7 #eportin"

&om'liance 2it0 t0e*e 'rinci'le* i* an e**ential element in t0eir 3$*ine** *$cce**. 60e nile,er Board i* re*'on*i3le .or en*$rin1 t0e*e 'rinci'le* are comm$nicated to+ and $nder*tood and o3*er,ed 3%+ all em'lo%ee*. Da%-to-da% re*'on*i3ilit% i* dele1ated to t0e *enior mana1ement o. t0e re1ion* and o'eratin1 com'anie*. 60e% are re*'on*i3le .or im'lementin1 t0e*e 'rinci'le*+ i. nece**ar% t0ro$10 more detailed 1$idance tailored to local need*. A**$rance o. com'liance i* 1i,en and monitored eac0 %ear. &om'liance 2it0 t0e &ode i* *$37ect to re,ie2 3% t0e Board *$''orted 3% t0e A$dit &ommittee o. t0e Board and t0e &or'orate Ri*) &ommittee. An% 3reac0e* o. t0e &ode m$*t 3e re'orted in accordance 2it0 t0e 'roced$re* *'eci.ied 3% t0e 8oint Secretarie*. 60e Board o. nile,er 2ill not critici*e mana1ement .or an% lo** o. 3$*ine** re*$ltin1 .rom ad0erence to t0e*e 'rinci'le* and ot0er mandator% 'olicie* and in*tr$ction*. 60e Board o. nile,er e9'ect* em'lo%ee* to 3rin1 to t0eir attention+ or to t0at o.

*enior mana1ement+ an% 3reac0 or *$*'ected 3reac0 o. t0e*e 'rinci'le*. :ro,i*ion 0a* 3een made .or em'lo%ee* to 3e a3le to re'ort in con.idence and no em'lo%ee 2ill *$..er a* a con*e#$ence o. doin1 *o. ;n t0i* &ode t0e e9're**ion* < nile,er< and < nile,er com'anie*< are $*ed .or con,enience and mean t0e N.-.+ nile,er Gro$' o. com'anie* com'ri*in1 nile,er nile,er :!& and t0eir re*'ecti,e *$3*idiar% com'anie*. 60e Board o. nile,er :!&=. ref:THE NEWS

nile,er mean* t0e Director* o. nile,er N.-. and

21

Envoirment policy

Hind$*tan

nile,er !imited >H !? *$''lie* 0i10 #$alit% 1ood* and *er,ice* to

meet t0e dail% need* o. con*$mer* and ind$*tr%. ;n doin1 *o+ t0e &om'an% i* committed to e90i3it t0e 0i10e*t *tandard* o. cor'orate 3e0a,io$r to2ard* it* con*$mer*+ em'lo%ee*+ t0e *ocietie* and t0e 2orld in 20ic0 2e li,e. 60e com'an% reco1ni*e* it* 7oint re*'on*i3ilit% 2it0 t0e Go,ernment and t0e :$3lic to 'rotect en,ironment and i* committed to re1$late all it* acti,itie* *o a* to .ollo2 3e*t 'ractica3le mean* .or minimi*in1 ad,er*e en,ironmental im'act ari*in1 o$t o. it* o'eration*. 60e com'an% i* committed to ma)in1 it* 'rod$ct* en,ironmentall% acce'ta3le+ on a *cienti.icall% e*ta3li*0ed 3a*i*+ 20ile .$l.illin1 con*$mer*< re#$irement* .or e9cellent #$alit%+ 'er.ormance and *a.et%. 60e aim o. t0e :olic% i* to do all t0at i* rea*ona3l% 'ractica3le to 're,ent or minimi*e+ encom'a**in1 all a,aila3le )no2led1e and in.ormation+ t0e ri*) o. an ad,er*e en,ironmental im'act ari*in1 .rom 'roce**in1 o. t0e 'rod$ct+ it* $*e or .ore*eea3le mi*$*e. 60i* :olic% doc$ment re.lect* t0e contin$in1 commitment o. t0e Board .or *o$nd "n,ironment Mana1ement o. it* o'eration*. 60e :olic% a''lie* to de,elo'ment o. a 'roce**+ 'rod$ct and *er,ice*+ .rom re*earc0 to .$ll-*cale o'eration. ;t i* a''lica3le to all com'an% o'eration* co,erin1 it* 'lantation*+ man$.act$rin1+ *ale* and di*tri3$tion+ re*earc0 @ inno,ation centre* and o..ice*. 60i* doc$ment de.ine* t0e aim* and *co'e o. t0e :olic% a* 2ell a* re*'on*i3ilitie* .or t0e ac0ie,ement o. t0e o37ecti,e* laid do2n.

22

The 0ision 60eir ,i*ion i* to contin$e to 3e an en,ironmentall% re*'on*i3le or1ani*ation ma)in1 contin$o$* im'ro,ement* in t0e mana1ement o. t0e en,ironmental im'act o. t0eir o'eration*. H ! 2ill ac0ie,e t0i* t0ro$10 an ;nte1rated "n,ironment Mana1ement a''roac0+ 20ic0 .oc$*e* on :eo'le+ 6ec0nolo1% and 4acilitie*+ *$''orted 3% Mana1ement &ommitment a* t0e 'rime dri,er.

4M&G Mar)et*
Slo2do2n in 1ro2t0 @ t0en B %ear* o. decline

7M63 Mar et 8-LL 6ategories9 3rowth:

00 8 A 4 B 0 -B -4 A.7 3.4 -1.1 -B.5 01 0B 03

23

4M&G Mar)et*
B009 - Re,i,al a.ter B %ear* o. decline

7M63 Mar et 8-LL 6ategories9 3rowth:

0B 8 A 4 B 0 -B -4 -1.1 0.8 -B.5 -B.8 B.0 A.1 03 C1 <04 CB <04 C3 <04 C4 <04

24

Pricin" action in 899:;

Price reduction

Price reduction -Bottle!. % 1alue improvement -Sac$et!.

25

Inve!tment Be$ind Brand!

Innovation % Superior /uality

Family H safe 6dvance from erms

-etalsoft

>ater , effort savin

Kuick wash G @+E

No mud 1in

-erfect 1adiance L@ in 2J hair breath health benefits

/otal )are

>hiter teeth

Fresher

26

Current Mar et Context

Action! M -ricin H$aundry F -rice 1eduction H5hampoosF Aalue Improvement , $ower -rice -oints H/oothpasteF Aalue )orrections , 5<# rationali4ation M Investments behind brands H Innovations H Kuality H "i her 6,M )orrective actions in processed Proce!!ed Food! M )orrective actions H -hased stock reduction H >ithdrawl of N+B innovation H 7efocus of 6tta in unviable eo raphies M 5ales decline of *DE arisin from above actions M (arket shares held I improved

27

Sa"es Gr!%t &

+RANDS

28

$RODU'TS
Lu $ifebuoy $iril "amam 5urf Excel 1in >heel 5unsilk Naturals )linic 6xe 1exona 6yush .rooke .ond $ipton <issan <norr 6nnapurna .ru !ree"e 7ove -ears 1exona Fair , $ovely -ond:s

-epsodent )loseGup $akme

<wality >all:s

29

India(s Lar#est )randed FM'G E*+!rter

It was 2?D*. /he reality of India then was very different from what it is today. India:s economy then suffered from forei n exchan e shorta e. "industan $ever voluntarily decided to take up Exports to support the country:s economy. /oday, "#$ is India:s lar est exporter of branded Fast (ovin )onsumer Goods. It has been reco ni4ed by the Government of India as a Golden 5uper 5tar /radin "ouse. 9ver time, "#$ in has cost developed and appropriate for a capabilities viable to be lobally

competitive Focu! Area!

8uality

Exports

business.

"#$:s Exports focuses on two broad areas. It is a sourcin

base for #nilever

30

brands in "ome , -ersonal )are %"-)& and /ea for supplies to other #nilever companies. It also focuses on becomin a preferred supplier to both nonG #nilever and #nilever clients in three cate ories in which India, as a country, has competitive advanta e G (arine -roducts, )astor and its 7erivatives and 1ice. "#$ en!oys international reco nition within #nilever and outside for its 8uality, reliability and speed of customer service. "#$:s Exports eo raphy comprises, at present, countries in 6sia, 6ustralia,

6frica, North 6merica and Europe.

&*L<! Export! portfolio &PC; /he cate ories are soaps, skin care products and oral care products. /he brands are $ux, $ifebuoy, -ears, Fair , $ovely, 7ove, Aaseline, )loseG#p, -epsodent, 5i nal. Tea; /he cate ories are branded packet tea, and instant tea for #nilever:s readyGtoG drink tea business. /he branded teas are .rooke .ond, .rooke .ond 1ed label, .rooke .ond /a! (ahal, $ipton, $ipton Oellow $abel, $ipton Green $abel, $ipton .risk, $ipton BGinG2 premix, )hinese 1ickshaw. Marine Product!; "#$ offers a comprehensive portfolio, ran in 5hrimps and several valueGadded products. 6mon from 5urimi, )rabsticks to its customers is Icelandic, "#$ is the only source of -ears soap across the world.

the world:s third lar est seafood company. In addition, "#$ has also become a part of #nilever:s supply chain in seafoods for Europe too. "#$:s (arine

31

-roducts brands are 9cean 7iamond, 9cean Excellence, 5ho un, "ima, Gold 5eal, /ara and -rima. #ice; /he cate ories are .asmati 1ice and .asmati 1iceGbased readyGtoGeat rice meals. /he brands are Gold 5eal Indus Aalley, 1o4ana and 6nnapurna. Ca!tor; /he cate ories are )astor 9il, )astorGoil based products, like hydro enated castor oil, 2* G "ydroxy 5tearic 6cid, 1icinoleic 6cid %used in 5peciality )astor 9ils %#5rade, .rade, 76. 2+& etc rease and used in lubricant industry, paints and surface coatin s, cosmetics, emulsifiers&, and pharmaceutical preparations. "#$:s )astor brand is /opsol. /oday, Exports is a substantial business in "#$, accountin for about 2*E of

the company:s turnover. "#$ believes that its competitive advanta es of cost competitiveness, process competitiveness and economies of scale both at the company and country level, hold it in ood stead. /hey position the company to become one of the hubs for sourcin (arine -roducts, )astor and 1ice. 'irect Sellin"; Product #an"e M $ever home ran e M (ale roomin M 9ral )are M 6yurveda M -ersonal >ash M Foods #eac$ = >?99 to)n! -Lar"e!t in India. by #nilever companies in "-) and /ea, lobal customers in and also simultaneously become a preferred partner to

32

Con!ultant (a!e = @@9,999

33

Accordin"ly, &*L<! aim! are to; Ensure safety of its products and operations for the environment by usin standards of environmental safety, which are scientifically sustainable and commonly acceptable. 7evelop, introduce and maintain environmental mana ement systems across the company to meet the company standards as well as statutory re8uirements for environment. Aerify compliance with these standards throu h re ular auditin . 6ssess environmental impact of all its activities and set annual improvement ob!ectives and tar ets and review these to ensure that these are bein levels. 1educe >aste, conserve Ener y and explore opportunities for reuse and recycle. Involve all employees in the implementation of this -olicy and provide appropriate trainin . -rovide for dissemination of information to employees on environmental ob!ectives and performance throu h suitable communication networks. Enctheira e suppliers and coGpackers to develop and employ environmentally superior processes and in redients and coG met at the individual unit and corporate

34

operate with other members of the supply chain to improve overall environmental performance. >ork in partnership with external bodies and Government a encies practice. #e!pon!i(ilitie! Corporate /he .oard and the (ana ement )ommittee of "#$ is committed to conduct the company operations in an environmentally sound manner. /he (ana ement )ommittee willF 5et mandatory standards and establish environmental to promote environmental care, increase ood understandin of environmental issues and disseminate

improvement ob!ectives and tar ets for "#$ as a whole and for individual units, and ensure these are included in the annual operatin plans. Formally review environment performance of the company once every 8uarter. 1eview environment performance when visitin reco nise exemplary performance. Nominate; G 6 senior line mana er responsible for environmental performance at the individual "#$ site. = &*L environmental coordinator+ units and

35

 /he

(ana ement

)ommittee,

throu h

the

nominated

environmental coordinator willF Ensure implementation of "#$ -olicy on environment and compliance with #nilever and "#$ environmental standards and the standards stipulated under relevant national I local le islation. >hen believed to be appropriate, apply more strin ent criteria than those re8uired by law. 6ssess environmental impact of "#$ operations and establish strate ies for sound environment mana ement and key implementation steps. Enctheira e manufacturin development of inherently safer and cleaner

processes to further raise the standards of

environment performance. Establish appropriate mana ement systems for environment mana ement and ensure re ular auditin to verify compliance. Establish systems for appropriate trainin in implementation of

Environment (ana ement 5ystems at work. Ensure that all employees are made aware of individual and collective responsibilities towards environment. 6rran e for expert advice on all aspects of environment mana ement. -articipate, wherever possible, with appropriate industry and Government bodies advisin protection of environment. on environmental le islation and interact with national and local authorities concerned with

36

Individual *nit! /he overall responsibility for environment mana ement at each unit will rest with the #nit "ead, who will ensure implementation of "#$ -olicy on environment at unit level. )oncerned line mana ers I heads of departments are responsible for environmental performance at department levels. In order to fulfill the re8uirements of the Environment -olicy at each site, the #nit "ead willF 7esi nate collatin a unit environment coordinator who will be for

responsible for coGordinatin expert advice.

environmental activities at unit, I arran in

environmental statistics and providin

6 ree with the (ana ement )ommittee (ember responsible for the unit, specific environmental improvement ob!ectives and tar ets for the unit and ensure that these are incorporated in the annual ob!ectives of the concerned mana ers and officers and are reviewed periodically. Ensure that the unit complies with #nilever and "#$ mandatory standards and the relevant national and state re ulations with respect to environment. Ensure formal environmental risk assessment to identify

associated environmental aspects and take appropriate steps to control risks at acceptable levels. Ensure that all new operations are sub!ected to a systematic and formal analysis to assess environmental impact. Findin s of

37

such exercises should be implemented prior to commencement of the activity. (ana e chan e in -eople, /echnolo y and Facilities throu h a planned approach based on trainin , risk assessment, preG commissionin audits and adherence to desi n codes. 1e ularly review environment performance of the unit a ainst set ob!ectives and tar ets and strive for continual improvement. 5ustain a hi h de ree of environmental awareness throu h re ular promotional campai ns and employee participation throu h trainin , safety committees, emer ency drills etc. Ensure dissemination of relevant information on environment within the unit and to outside bodies, and re ularly interact with Government environment. (aintain appropriate emer ency procedures consistent with available incidents. -rovide appropriate trainin to all employees. Ensure periodic audits to verify compliance with environment mana ement systems and personally carry out sample environment audits to check efficacy of the systems. 1eport environmental statistics to "#$ )orporate 5afety , Environment Group on a monthly basis. technolo ies to prevent I control environmental authorities concerned for protection of

#e!earc$ and Innovation Centre!

38

5ince most new products and processes are developed in these #nits, certain additional responsibilities devolve on them to ensure implementation of the Environment -olicy of the company. In addition to the #nit "ead:s responsibilities outlined above, the heads of these units willF Ensure that a formal and systematic risk assessment exercise is undertaken durin the processIproduct development sta e with specific reference to environmental impact. /ransfer technolo y to the pilot plant and main production throu h a properly documented process specification which will clearly define environmental impact and risks associated with processes, products, raw material and finished product handlin , transport and stora e. Ensure that treatment techni8ues are developed for any wastes enerated as a result of the new productIprocess and is incorporated into the process specifications. /*ALIT2 POLIC2; "industan #nilever $imited considers 8uality as one of the principal strate ic ob!ectives to uarantee its rowth and leadership in the markets in which it operates. /he company is committed to respond creatively and competitively to the chan in needs and aspirations of their consumers throu h relentless pursuit of technolo ical excellence, innovation and 8uality mana ement across their businesses, and offer superior 8uality

39

products and services that are appropriate to the various price points in the market as well as to their commitment to buildin value. /he company reco nises that its employees are the primary stheirce of success in its operations and is committed to trainin and providin them the necessary tools and techni8ues as well as empowerin all levels. /he company is committed to fulfill its le al and statutory obli ations and international standards of product safety and hy iene and will not knowin ly sell product that is harmful to consumers or their belon in s. It will institute systems and measures to monitor compliance in order to meet its responsibilities to consumers. /he company will maintain an open communication channel with its consumers and customers and will carefully monitor the feedback to continuously improve its products and services and set 8uality standards to fulfill them. /he company is committed to extend its 8uality standards to its contract manufacturers, key suppliers and service providers and by enterin into alliances with them, to !ointly improve the 8uality of its products and services. /his policy is applicable to production from its own facilities as well as to production that is outsourced. /he company will periodically review this 8uality policy for its effectiveness and consistency with business ob!ectives. them to ensure broad base compliance of this policy in the or anisation at shareholder

40

/he company dele ates authority and responsibility for dissemination and implementation of this policy to each .usiness and #nit "ead.

41

SAFET2 AN' &EALT& POLIC2 Introduction "industan #nilever $imited doin %"#$& supplies hi h 8uality oods and

services to meet the daily needs of consumers and customers. In so, the )ompany is committed to exhibit the hi hest standards of corporate behavior towards its consumers, employees, the societies and the environment in which we operate. /owards this, the )ompany reco ni4es its responsibility to ensure safety and protection of health of its employees, contractors and visitors in all its operatin work related travel. /his -olicy document defines the vision, principles, aim, re8uired actions and scope of the policy application as well as the responsibility for execution. T$eir 1i!ion /heir vision is to be an in!ury free or ani4ation. &*L NE6SFJ>e will brin safety on top of mind for all employees and will inte rate it with all business processes. >e will reali4e their Aision throu h an Inte rated 5afety (ana ement approach, which focuses on -eople, -rocesses, 5ystems, /echnolo y and Facilities, supported by demonstrated leadership and employee commitment at all levels as the prime drivers for ensurin a safe and healthy work environmentJ. sites, which include manufacturin , sales work and and distribution, research laboratories and offices durin

42

5afety -rinciplesF
"#$:s 9ccupational 5afety and "ealth -olicy is based on and supported by the followin ei ht -rinciples. /hese -rinciples have the same status as the )ompany:s )ode of .usiness -rinciplesF 6ll in!uries and occupational illnesses are preventable 6ll operational exposures can be safe uarded 5afety evaluation of all business processes is vital >orkin safely is a condition of employment /rainin all employees to work safely is essential (ana ement audits are a must Employee involvement is essential 6ll deficiencies must be reported and corrected promptly In order to facilitate operationalisation of the 5afety -rinciples, a separate document has been prepared, which coversF a& 5afety -rinciples b& 5uccess )riteria c& Illustrative <-I

43

 )onsumer satisfaction

Indira is *+ years old, a tribal woman at <onde aon villa e in .astar district. 5he is !ust back from the nearby !un les, collectin firewood. 6fter attendin to her baby son, she will o to the villa e well to take a 8uick wash. Oesterday her husband brou ht her a white soap, with pink petals in it. Indira had re8uested him to buy one, for the festival later this evenin . Indira is amon millions of consumers in rural India who use "industan $ever:s products. 5he came to know about $ux throu h the /A set at the community centre. It is not very costly, and also available nearby. "ome to over C++ million people, rural India comprises not only over C+E of India:s billionGstron population, but also over 2*E of the world:s population. /he rural population already accounts for substantial consumption of Fast (ovin )onsumer Goods and also consumer durables. 6bout @+E of the sales of soaps , deter ents are enerated in rural India. 5imilarly, almost half the demand for black , white television sets, pressure cookers, table fans, sewin machines also comes from there.

44

)ost mana ementF

.ut the potential is even lar er, both in terms of consumption and penetration. /he fact that C+E of the population accounts for only @+E of even relatively wellGpenetrated cate ories, like soaps , deter ents, indicates the enormous scope of consumptionGled rowth in these cate ories. /herefore such cate ories will derive rowth out of increased usa e. In cate ories, which are relatively less penetrated, like personal products, rural India offers an even bi er rowth opportunity throu h reater penetration and then consumption. For example only three out of 2+ consumers in rural markets use shampoo or skin care products. /herefore rowth in such cate ories will emer e, as more consumers purchase these products, and then continue to use them re ularly. "industan $ever has taken many initiatives over the decades to create markets in the rural hinterlands. .y marketin relevant products, at affordable prices. 6 uni8ue example is "industan $ever:s $ifebuoy soap. In rural India, health is of paramount importance, because indisposition is very directly related to loss of income. $ifebuoy, whose core e8uity is health and hy iene , has for decades now been synonymous with soap in rural India. 6t the same time, if products have to come up the order in the rural purchase hierarchy, they have to be affordable. If rural India today accounts for about half of deter ents sales, it is because "#$ has developed lowGcost valueGforGmoney branded products, like >heel. /he company has also taken initiatives to create markets even for apparently premium products, by offerin them in pack si4es, like sachets, whose unit prices are within the reach of rural consumers. For example, initiated in the 2?;+s, sachets %1s.*, 1e.2, or @+ paise& today

45

constitute about @@E of "industan $ever:s shampoo sales. >ith media reach radually increasin , rural consumers today, where the media has its footprints, share the same aspirations with their urban counterparts. "#$ has responded to the trend with low unit price packs of even other products G $ux at 1s.@, $ifebuoy at 1s.*, 5urf Excel sachet at 1s.2.@+, -ond:s /alc at 1s.@, -epsodent toothpaste at 1s. @, Fair , $ovely 5kin )ream at 1s.@, -ond:s )old )ream at 1s.@, .rooke .ond /aa4a tea at 1s.@.

9ther marketin strate iesF

For decades now, "industan $ever has also taken initiatives to circumvent the limitation in communication channels, by innovatively levera in nonGconventional media. 6mon them are wall paintin s, cinema vans, weekly markets %haat&, fairs and festivals. Given the rural consumer:s fascination for cinema, the cinema vans show popular movies, interspersed with products advertisements. >eekly markets, fairs and festivals are parts and parcel of rural life. /hey ive an opportunity to address consumers, spread over many tiny hamlets, at one location. /he occasions are used to demonstrate product benefits and also sell such products. 5uch demonstrations have played a si nificant role in creatin , for example, the deter ents market in rural India. In recent times, such demonstrations are bein deployed to illustrate how visible clean is not hy ienic clean, and how usin soap is essential to prevent easily avoidable infections. )ommunication throu h fairs and festivals are backed by direct consumer contact. For example, in 2??;G??, "industan $ever implemented a ma!or direct consumer contact, called -ro!ect .harat, which covered *.* crore homes. Each home was iven a box, at a special price of 1s.2@, comprisin a low unit price pack of shampoo,

46

talcum powder, toothpaste and skin cream, alon with educational leaflets and audioGvisual demonstrations. /he pro!ect has helped eliminate barriers to trial, and has stren thened salience of both particular cate ories and brands. 5imilarly in *++*, "industan $ever has launched a similar lar eGscale direct contact, called $ifebuoy 5wasthya )hetana, which already covers C+ million people in 2;,+++ villa es of ; states. /he pro!ect is intended at eneratin awareness about ood health and hy iene practices, and specifically how a simple habit of washin hands is essential to maintainin a ents. ood health. /he initiative will involve interaction with students and senior citi4ens, who act as chan e

6vailability of "#$'s -roductF

Generatin awareness pays dividends only when steps are taken to ensure constant availability of products. In rural India particularly, availability determines volumes and market share, because the consumer usually purchases what is available at the outlet, influenced very lar ely by the retailer. /herefore, over the decades, "industan $ever has pro ressively stren thened its distribution reach in rural India, which today has about BB lakh outlets. 7irect rural distribution in "industan $ever be an with the covera e of villa es ad!acent to small towns. /he company:s stockists in these towns were made to use their infrastructure to distribute products to outlets in these villa es. .ut this distribution mode could only be extended to villa es connected with motorable roads, and it could cover about *@E of the rural population by 2??@. /herefore in 2??;, "industan $ever launched -ro!ect 5treamline to further extend its distribution reach. #nder this initiative, the company

47

identifies subGstockists in a lar e villa e, connected by motorable road to a small town. /his subGstockist in turn distributes the company:s products to outlets in ad!acent smaller villa es usin transportation suitable to interconnectin roads, like cycles, scooters or the a eGold bullock cart. "industan $ever is thus tryin to circumvent the barrier of motorable roads. 6s a result, the distribution network, as of now, directly covers about @+,+++ villa es, reachin about *@+ million consumers. /he company simultaneously uses the wholesale channel, suitably incentivisin them to distribute company products. "#$ has in the recent past established a common distribution system in rural areas for all its products. Given the number of brands and their packs the rural retailer usually re8uires, one "#$ representative can take all the products from the company portfolio that he needs. /his common distribution system is now fully operational, under one 1e ional 5ales (ana er exclusively dedicated to rural markets of each re ion of the country. 9ver time, "industan $ever will further stren then its rural distribution throu h mutually beneficial alliances with rural 5elf "elp Groups %5"Gs&. 9ver the last five years, financial institutions, NG9s and overnment or anisations are workin closely to establish 5"Gs, whose ob!ective is to alleviate poverty throu h sustainable incomeG eneratin activities. 5ince *++2, "industan $ever is implementin -ro!ect 5hakti, whereby 5"Gs are bein offered the option of distributin relevant products of the company as a sustainable incomeG eneratin activity. /he model hin es on a powerful winGwin relationship3 the 5"G en a es in an activity which brin s sustainable income, while "industan $ever ets an interface to interact and transact with the rural consumer. "#$:s vision for -ro!ect 5hakti is to scale it up across the country by *++@, creatin about *@+++ 5hakti entrepreneurs, coverin 2++,+++ villa es, and
48

touchin the lives of 2++ million rural consumers. .e un with @+ roups in Nal onda district of 6ndhra -radesh, with the support of local authorities, the pro!ect has been extended, as of now, to about @+,+++ villa es in 2* states. 6 typical 5hakti entrepreneur conducts business of around 1s.2+,+++ G 1s 2@,+++ per month, which ives her an income of about 1s C++ G 1s.2+++ per month on a sustainable basis. 6s most of these women are from below the poverty line, and live in extremely small villa es %less than *+++ population&, this earnin is very si nificant, and is almost double of their past household income. /he full benefit of -ro!ect 5hakti will be realised after some years.

49

&*L 'IST#IB*TION NET6O#A

#$%UF$&'U(I%) U%I'* $LL $&(+** I%DI$

&@4 1

&@4 B

&@4 3

&@4 4

&@4 5

&@4 A

&@4 7

S6D&E;S6S

S6D&E;S6S

S6D&E;S6S

S6D&E;S6S

S6D&E;S6S

S6D&E;S6S

S6D&E;S6S

/HD!"SA!"RS
R"6A;!"RS

& S6DM"RS

/his is the whole 7istribution )hain of "#$ to cover the 1ural market. /he company have remarkably worked upon to make the supply chain from manufacturers to retailers simple with very few number of mediators and !obbers. It has helped them to maintain the transparency in the cycle and also have let them established a prompt delivery process. /he products are manufactured in the factories all across India and then is supplied from there to the various )arria e and Forwardin %),F& units which are @G2+ per state dependin on the area they have to cover and are established by the company. /hese ),F units then supply the products to the various >holesalers confined to their area only and accordin to the wholesalers demand. /he wholesalers then supply the products to the semiGwholesalers and the retailers as per the volume of their order. /hen the semiGwholesalers deliver the products to the retailers and customers.

50

MAN 4A&6 R"R

STA3) &%
&@4

In this sta e the products reach to the )arria e and Forwardin unit from various manufacturin units established all across India. /he volume of the delivery depends upon the 8uantity re8uiredIordered by the ),F unit. /he depot sends the re8uest of the volume of the products to the "ead 9ffice, which then order the various factories to supply the products to the mentioned depot. /he supply is met within a week. "#$ has 0@ ),F's with C+++ stockists and *+++P suppliers and associates to tar et the market.

&@4

STA3) "%
/HD!"SA!"RS

/he ),F then supplies the products accordin to the demand of various wholesalers. Each of the depot cover a re ion assi ned to them. Each ),F ac8uires @GC trucks and hire 0G@ more trucks to supply products everyday. /hey work on the concept of advance payment by 77 by the wholesalers and deposit them in the bank which is transferred to the head office.

51

NATION 6I'E MAN*FACT*#IN4;

;+ factories, across India

/he year was 2?*B. $ord $everhulme, the le endary founder of $ever .rothers, was visitin India. /he nationalist sentiment in India was for locally manufactured products. $ord $everhulme, who believed that what is ood for a country is e8ually ood for the company, responded to that aspiration because he too shared that dream. "is dream ultimately was realised in 2?B0. In 5eptember 2?B0, after more than a decade of discussions in $ondon and in India, a $ever factory was allowed to sprout on the land that had been reclaimed by the .ombay -ort /rust at 5ewri. From here, a month later rolled out the first cake of 5unli ht soap to be manufactured in India. /he same year, $ever .rothers took over the Garden 1each Factory in <olkata. /hese two factories were the first in a manufacturin base, which today literally dots the len th and breadth of India. From 6ssam to Gu!arat, from #ttaranchal to <erala. "industan $ever:s diverse product ran e is today manufactured in about ;+ factories. In addition, the company outsources from 2@+ other units. /he operations involve *,+++ suppliers and associates.

52

'E1ELOPIN4 BACA6A#' A#EAS

5everal "#$ factories are situated in backward areas. /he company has consciously responded to the national policy of development of backward areas by settin up manufacturin units in these places, which provide several direct and indirect employment opportunities for these areas, and leads to eneral economic development of these re ions throu h industrialisation. In fact, all ma!or investments of "#$, in recent years, have been either in 6G)ate ory backward areas or NoGIndustry 7istricts. /hese include factories in <ham aon and Oavatmal %(aharashtra&, )hhindwara %(adhya -radesh&, 9rai, 5umerpur and <halilabad %#ttar -radesh&, "aldia %>est .en al&, 5ilvassa %7adra , Na ar "aveli&, -ondicherry, Goa, 7oom 7ooma %6ssam&, "aridwar %#ttaranchal& and .arotiwala %"imachal -radesh&. 5ince *++2 itself, "#$ has set up nine new factories in backward areas. E8ually, "#$ has an enviable track record in takin over sick enterprises, in response to re8uests from Government, and convertin them into viable operations. /he company:s units at (an alore and 1a!pura all bear testimony to this achievement. In the process, "#$ has saved precious !obs and developed local economies. "#$:s manufacturin facilities, like the <ham aon soap plant and the 5umerpur deter ent bar unit, are reco nised as amon the best in the #nilever world. "#$ has adopted /otal -roductive (aintenance %/-(& for achievin manufacturin excellence since 2??0. 6s on date, /-( is in different sta es of implementation in *; factories. Four "#$ factories have

53

already received the /-( )onsistency 6ward, and 20 factories have been awarded with the /-( Excellence 6ward.

(arketin needs every where

"ow do you ensure that (r. 1amesh in <anyakumari ets his $ifebuoy soap and (rs. <ulkarni in Jammu distribution network in place. "industan $ever:s distribution network is reco nised as one of its key stren ths. Its focus is not only to enable easy access to our brands, but also to touch consumers with a threeGway conver ence G of product availability, brand communication, and hi her levels of brand experience. "#$:s products, manufactured across the country, are distributed throu h a network of about C,+++ redistribution stockists coverin about one million retail outlets. /he distribution network directly covers the entire urban population. /he eneral trade comprises rocery stores, chemists, wholesale, stores for ets to know how .ru coffee tastes ed e even before she has bou ht itQ >ell, you need to have a cuttin

kiosks and eneral stores. "industan $ever services each with a tailorG made mix of services. /he emphasis is e8ually on usin facilitators. direct contact with consumers, as much as is possible throu h inGstore

54

6/ /"E 5#-E1(61<E/5
5elfGservice stores and supermarkets are fast emer in lar e towns. /o service modern retailin in metros and

outlets in the metros, "#$

has set up a fullGscale sales or anisation, exclusively for this channel. /he business system delivers excellent customer service, while drivin rowth for the company and the store. 6t the same time, innovative marketin samplin . initiatives are taken to provide consumers with experience of our brands at the store itself, throu h product tests and inGstore

In the villa es
"#$ has also revamped its sales or anisation in the rural markets to fully meet the emer in rural population. /he needs and increased purchasin company has brou ht all power of the markets with

populations of below @+,+++ under one rural sales or anisation. /he team comprises an exclusive sales force and exclusive redistribution stockists, under the char e of dedicated mana ers. /he team focuses on buildin superior availability, while enablin brand buildin in the deepest interiors. "#$:s distribution network in rural India already directly covers about @+,+++ villa es, reachin consumers, throu h about D+++ subGstockists. "arnessin Information /echnolo y 6n I/Gpowered system has been implemented to supply stocks to redistribution stockists on a continuous replenishment basis. /he about *@+ million

55

ob!ective is to catalyse "#$:s

rowth by ensurin

that the ri ht

product is available at the ri ht place in ri ht 8uantities, in the most costGeffective manner. For this, stockists have been connected with the company throu h an InternetGbased network, called 15Net, for online interaction on orders, despatches, information sharin /oday, the sales system and monitorin . 15 Net covers about ;+E of the company:s turnover. ets to know every day what "#$ stockists have sold to almost a million outlets across the country. 15 Net is part of -ro!ect $eap, "#$:s endGtoGend supply chain, which also includes a backGend stretchin system connectin ri ht suppliers, upto all company stockists. sites and

S&AATI = C$an"in" Live! in #ural India 5hakti is "#$:s rural initiative, which tar ets small villa es with population of less than *+++ people or less. It seeks to empower underprivile ed rural women by providin incomeG eneratin opportunities, health and hy iene education throu h the 5hakti Aani pro ramme, and creatin i5hakti community portal. In eneral, rural women in India are underprivile ed and need a overnmental bodies and other livelihoods for rural women, livin standards them to to improve the status of rural women. access to relevant information throu h the

sustainable source of income. NG9s, institutions have been workin 5hakti is a pioneerin effort in creatin

or anised in 5elfG"elp Groups %5"Gs&, and improvin these women and their families, by e8uippin

in rural India. 5hakti provides critically needed additional income to and trainin become an extended arm of the company:s operation.

56

5tarted in *++2, 5hakti has already been extended to about ;+,+++ villa es in 2@ states G 6ndhra -radesh, <arnataka, /amilnadu, (aharashtra, Gu!arat, (adhya -radesh, )hattis arh, #ttar -radesh, 1a!asthan, -un!ab, "aryana, >est .en al, 9rissa, .ihar , Jharkhand. /he respective state overnments and several NG9s are actively involved in the initiative. 5hakti already has about *@,+++ women entrepreneurs in its fold. 6 typical 5hakti entrepreneur earns a sustainable income of about 1s.C++ G1s.2,+++ per month, which is double their avera e household income. 5hakti is thus creatin opportunities for rural women to live in improved conditions and with di nity, while improvin standard of livin the overall of in their families. In addition, it involves health and

hy iene pro rammes, which help to improve the standard of livin rural population. -lans are also bein overall rural development. drawn up to brin

the rural community. 5hakti:s ambit already covers about 2@ million in partners involved in a riculture, health, insurance and education to cataly4e

"#$:s vision for 5hakti is to scale it up across the country, coverin 2++,+++ villa es and touchin by *++@. 5hakti Aani is a social communication pro ramme. >omen, trained in health and hy iene issues, address villa e communities throu h meetin s at schools, villa e baithaks, 5"G meetin s and other social fora. In *+0, 5hakti Aani has covered 2+,+++ villa es in (adhya -radesh, )hattis arh and <arnataka. /he vision is to cover ;+,+++ villa es in *++@. the lives of 2++ million rural consumers

57

i5hakti, the InternetGbased rural information service, has been launched in 6ndhra -radesh, in association with the 6ndhra -radesh Government:s 1a!iv Internet Ailla e -ro ramme. /he service is now available in Nal onda, Aishakapatnam, >est Godavari and East Godavari districts. i5hakti has been developed to provide information and services to meet rural needs in medical health and hy iene, a riculture, animal husbandry, education, vocational trainin kiosks across the state by *++@. and employment and women:s empowerment. /he vision is to have B,@++

-ioneerin New )hannels

"industan $ever is simultaneously creatin new channels, desi ned on the same principle of holistic contact with consumers. -ro!ect 5hakti, "#$:s partnership with 5elf "elp Groups of rural women, is becomin an extended arm of the company:s operation in rural hinterlands. 5tarted in *++2, -ro!ect 5hakti has already been extended to about @+,+++ villa es in 2* states G 6ndhra -radesh, <arnataka, Gu!arat, (adhya -radesh, /amil Nadu, )hattis arh, #ttar -radesh, 9rissa, -un!ab, 1a!asthan, (aharashtra and >est .en al. /he respective state overnments and several NG9s are actively from "#$ and support involved in the initiative. /he 5"Gs have chosen to partner with "#$ as a business venture, armed with trainin from overnment a encies concerned and NG9s. "industan $ever Network %"$N& is the company:s arm in the 7irect 5ellin channel, one of the fastest rowin in India today. It already has about B.@ lakh consultants G all independent entrepreneurs,

58

trained and

uided by "$N:s expert mana ers. "$N has already ;+E of the urban

spread to over 2@++ towns and cities, coverin

population, backed by 0* offices and *0+ service centres across the country. It presents a ran e of customised offerin s in "ome , -ersonal )are and Foods. 9utGofG"ome consumption of products and services is a rowin

opportunity in India, as elsewhere in the world. "industan $ever is already the lar est player in the hot bevera es outGofGhome se ment, with over 2@+++ tea and coffee vendin expandin stren then the network a points. /he company is ressively, in the education, entertainment, this channel.

leisure and travel se ments. "#$:s allaince with -epsi will si nificantly

"ealth , .eauty 5ervices are "industan $ever:s simultaneous foray to meet the increasin consumer need for such products and services. $akme 5alons provide specialised beauty services and solutions, under the reco nised authority of the $akme brand. /he 6yush /herapy )entres provide easy access to authentic 6yurvedic treatments and products. "industan $ever, which once pioneered distribution in India, is today reinventin distribution G creatin new channels, and redefinin the way current channels are serviced. In the process it is conver in product availability, with brand communication and brand experience.

59

N9AE$ -197#)/ NE> -19)E55

"industan $ever:s mission is to meet everyday needs for nutrition, hy iene, and personal care, with brands that help people feel look ood and ood, et more out of life. "#$:s research , development

base, one of the lar est in Indian industry, helps achieve this mission, with novel products and new processes. /he company has over B;+ patents, demonstratin its leadin ed e in consumerGrelevant 1,7. /he "industan $ever 1esearch )entre %"$1)&, with facilities in (umbai and .an alore, and lobal technolo y centres in India have over *++ hi hly 8ualified scientists and technolo ists, many with postG doctoral experience ac8uired in the #5 and Europe. 5et up in 2?@;, "$1):s aim is to develop new products and processes, improvin benefits and 8uality of existin resources. (a!or innovations have taken place, down the decades, in every cate ory in which "#$ is present. From "ome )are to -ersonal care, .evera es to Foods. .etter cleanin , lesser water consumption products, and optimal use of

60

)onsider

for

example,

"#$:s

development

of

waterGsavin

technolo y for its deter ents. 9ne of the most severe problems that India faces today is shorta e of water. >ater scarcity affects one in every three Indians. In a typical Indian home, at least *+E of the water consumed oes behind washin of clothes. "#$ decided that it would be of immense benefit to an Indian household, if a technolo y could be developed, which would help reduce water consumed in washin of clothes. "#$:s scientists have innovated a pathGbreakin technolo y G it reduces water consumption and time taken for rinsin by @+E. /he technolo y has already been introduced. >orld:s most advanced water purifier -eople in cities and towns spend enormous amounts, either in fuel or devices, to ensure safe drinkin water. "#$:s scientists have developed a breakthrou h device, called =-ureit=, which purifies water as safe as boiled water, providin drinkin 2++E protection from all waterG tap borne diseases3 it also removes pesticides that may be present in water. Its operation does not re8uire electricity, runnin water and plumbin or expensive maintenance. It thus provides water

at a cost of !ust 1e.2 for every six litres G or less than *+ paise a litre. Iodine In 5alt G the vital in redient Iodine, it is wellGknown, is important for the mental development of youn children. Iodised salt is a wellGaccepted mode of ensurin appropriate iodine intake. Oet Iodine added to salt is lost in transport, stora e as well as in the process of cookin . "#$ scientists have developed a patented breakthrou h technolo y to stabilise iodine in salt, followin work on the stability of iodine under Indian conditions of stora e and cookin . /he technolo y has made it possible to

61

actually realise the purpose of iodised salt G that people appropriate iodine intake throu h the food they eat. /echnolo y of skin li htenin

et

1esearch in the biolo y of skin pi mentation has led to the formulation of a product like Fair , $ovely 5kin )ream and $otion. /he product has been periodically updated throu h new patented actives. It has now become a lobal success throu h exports to over B+ countries. /he product is e8ually used by the local population of these countries, apart from those of Indian ori in.

"#$ has e8ually developed new processes. InGhouse machine development /he company has the capability to desi n and manufacture machines inGhouse. /his enables the company to set up plants at half the cost of others. 5uch technolo ical developments have also led to si nificant improvement in productivity.

Ener y conservation
In the past, one of the most si nificant breakthrou hs of "#$:s research initiative has been the development of a technolo y to use nonGconventional forest seed oils for soapGmakin which, since the 2?C+s, has helped save around R2.* billion in forei n exchan e. "#$ had received the Government of India:s presti ious award for import substitution. manufacturin compromise 7evelopment on product of 5tructurant and /echnolo y 8uality. for /he soap latest also helped save costly conventional oils without any performance and the

technolo y to produce 7istilled Fatty 6cid for soap makin

62

resultant plant capacity expansion has drastically brou ht down specific ener y consumption while improvin evolution of continuous soap processin ener y consumption. "#$ believes that technolo y is critical to deli ht consumers. )reative application of technolo y has made "industan $ever successful in launchin products and services, which raise the 8uality of life. distillation yields. /he technolo y has also reduced

&ELPIN4 &AN'S;

"#$

)9((I/5

1s.

)191E5

F91

I((E7I6/E

1E$IEF,

1E"6.I$I/6/I9N /9 /5#N6(IG"I/ )9((#NI/IE5 (#(.6I, January C, *++@F "industan #nilever $imited relief and helpin %"#$& today

announced to commit, a total outlay of 1s.; crores for immediate people to rehabilitate themselves so that they can resume their livelihood, in the tsunamiGhit areas of -ondicherry, /amil Nadu and <erala. 9f this, 1s.@ crores %absolute value terms& is bein utili4ed for distribution of the )ompany:s nutritional , personal hy iene products for immediate relief to the needy. 6nother 1s.B crores will be raised partly by contributions from company employees and the balance contribution from the )ompany to be used in collaboration with NG9s workin back on their feet. with the community to provide the people, notably fishermen, with means of livelihood and help them

63

5ince 7ecember *D, employees of "#$ factories and offices in -ondicherry, /amil Nadu and <erala have been providin necessary relief to the tsunamiGhit people. /he relief operations include, distribution of bread and biscuits to over *+++ families in -ondicherry, 2*,+++ cooked meals for families in )hennai, Na apattinam, of )uddalore and 6ndamans. 9ver 2*,+++ dry relief packs, comprisin been "#$:s employees are donatin

)ompany:s dry rations and personal hy iene products have already distributed. a day:s salary, matched e8ually by the

)ompany for exclusive use in rehabilitation. /he bi est concern is, that peopleI fishermen have lost their means

of livelihood. "#$ plans to focus its rehabilitation efforts to restore their means of livelihood so that the local communities can 8uickly et back to their lives at the earliest.

"#$ has always been a front runner in its call for national duty and carin for the community. Its employees not only donate enerously, but volunteer to take part in relief operations by committin their time and physical effort. /his is in line with our corporate value of LcareJ and our )51 mission which has become an inte ral part in our way of doin business. Earlier durin the Gu!arat earth8uake, "#$ had adopted and

reconstructed a new villa e, Oashodadham, in .hachau /aluka of <utch district. Oashodadham, spread over *@ acres, comprises *;? homes, school buildin , an exclusive play round for children and a multiGpurpose community centre, includin an an anwadi %creche&, health centre, community room and panchayat office, an under round

64

reservoir and an overhead tank for water. 6ll the dwellin electricity, and piped water and are now fully occupied. "#$ is India:s lar est Fast (ovin

units have

)onsumer Goods company,

touchin the lives of two out of three Indians. "#$'s mission is to Ladd vitality to life= throu h its presence in over *+ distinct cate ories in "ome , -ersonal )are -roducts and Foods , .evera es. /he company meets everyday needs for nutrition, hy iene, and personal care, with brands that help people feel ood, look ood and et more out of life. Special Education % #e$a(ilitation #nder the "appy "omes initiative, "#$ supports special education and rehabilitation of children with challen es. A!$a 'aan; /he initiative be an in 2?CD, when "#$ supported (other /eresa and the (issionaries of )harity to set up 6sha 7aan, a home in (umbai for abandoned, challen ed children, and the destitute. 5ubse8uently, 6sha 7aan has also become a home to the "IAGpositive. /he ob!ective in supportin 6sha 7aan was and continues to be to share the the (other:s mission of servin or ansation:s prosperity in supportin s8uare feet plot belon in

the =poorest of the poor=. 6sha 7aan has been set up on a C*,@++G to "#$, in the heart of (umbai city. "#$ bears the capital and revenue expenses for maintenance, upkeep and security of the premises. /he destitute and the "IAGpositive are provided with food, shelter and medication for the last few days of their lives. /he needs of the abandoned challen ed children are also met throu h special classes of basic skills, physiotherapy and, if

65

possible, corrective sur ery. 6t any point of time, it takes care of over B++ infants, destitute men and women and "IAGpositive patients. 9ver the years, "#$ has opened schools for challen ed children with a sharper ob!ective of supportin productive An ur; In 2??B, "#$:s 7oom 7ooma -lantation 7ivision set up 6nkur, a centre for special education of challen ed children. /he centre takes care of children with challen es, a ed between @ and 2@ years. 6nkur provides educational, vocational and recreational activities to over B@ children with a ran e of challen es, includin learnin si ht or hearin impairment, polio related disabilities, cerebral palsy and severe difficulties. /hese physically and mentally challen ed children on their aptitudes. /he selfGemployment for D are tau ht skills, such as cookery, paintin , embroidery, bamboo crafts, weavin , stitchin , etc dependin centre has rehabilitated 2+ children, includin members families of such children, helpin of the household. the children become selfGreliant by learnin appropriate skills to be

children by providin them with shops, and B irls have been provided employment as creche attendants. It has also moved to normal schools 2; children. 5ince inception it has covered about ;+ children. 6nkur received the $awrie Group >orldaware 6ward for 5ocial -ro ress in 2??? from "1" -rincess 1oyal in $ondon.

Aappa"am; Encoura ed by 6nkur:s success, <appa am %=shelter=&, the second centre for special education of challen ed children, was set up in 2??; on "#$ -lantations in 5outh India. It has 2C children. /he focus of

66

<appa am is the same as that of 6nkur. /he centre has 2C children, bein tau ht selfGhelp skills, useful vocational activities like makin reetin cards, wrappin of paper covers, papers, fancy stationery,

napkins, brooms made out of coconut leaves, candles, and also some home care products. 6bout 2* of the children have become relatively selfGreliant by earnin throu h crafts learnt at the centre. 5ince inception, it has covered about *; children. An(a"am; Oet another day care center, 6nba am %=shelter of love=&, has been started in *++B also in the 5outh India -lantations. It takes care of 22 children. .esides medical care and meals, they too are bein tau ht skills such that they can become selfGreliant and elementary studies. 9ver *+,+++ individuals have benefitted from the "appy "omes initiatives since inception. "#$ is wholeheartedly involved with all four centres and will continue to be involved in the future.

&IN'*STAN *NILE1E# LIMITE' 7 'ECEMBE# /*A#TE# 899B #ES*LTS

/otal 5ales row by 20.0E3 F()G 5ales rowth at 2@.;E "-) and Foods row by 2CE and ?E respectively3 .road

based rowth across cate ories -.I/ rows 2B.@E3 Net -rofit increases by @DE E-5 for *++@ rows 2C.DE3 Final 7ividend 1s *.@+ per share of

1e 2IG each3 /otal 7ividend 1s @.++ per share for *++@

67

Mum(ai, Fe(ruary >?, 899C; "industan #nilever $imited

%"#$&

announced its results for 7ecember Kuarter *++@. Growth momentum achieved in the last three 8uarters has been sustained with total sales rowin by 20.0E. 7omestic F()G sales were hi her by 2@.;E with both "ome and -ersonal )are %"-)& and Foods performin well. "-) business rew by 2C.BE driven by stron performance in all

cate ories. 5i nificant sales rowth, with $ux performance leadin innovations durin rowin

rowth was achieved in the hi hly in market share

competitive cate ories of $aundry and 5hampoo. 5oaps recorded ood handsomely reflectin ains. 6ll the brands in 5kin cate ory maintained their stron to a double di it rowth for the cate ory. L/hick and )onsumer relevant innovations continue to drive offGtake and key the 8uarter include the reGlaunch of 5tron J 5unsilk -ink, $ux variants for the C@Gyear celebrations, and the national launch of LJasmine FreshJ 1in 6dvanced -owder. In Foods business, /ea achieved a modest market and fallin well. -rocessed Foods business rowth despite a declinin

commodity prices3 )offee continued to perform rew stron ly, albeit on a low base.

/he Icecream business also achieved a BBE increase in sales, led by the impulse cate ory. 1elaunch of <norr soup with a superior mix and introduction of new variants was the key Foods innovation durin 8uarter. -rofit before Interest and /axes %-.I/& increased by 2B.@E after absorbin a @+E hi her spend in 6dvertisin and -romotions. "i her crude oil price led cost pressures continued, particularly in $aundry the

68

cate ory,

but were

miti ated

by a

ressive

cost effectiveness

pro rams. -rofit after tax %-6/& items was hi her by @DE.

rew by **.CE due to a lower the impact of exceptional

effective tax rate and Net profit, includin

For full year 899B, total sales were 22.0E hi her than in the previous year, with broad based both "-) and Foods rowth across cate ories leadin rowin by 20E and to ;E, businesses

respectively. Judicious price increases coupled with robust cost savin initiatives partly neutralised the impact of both cost escalations, particularly in the $aundry cate ory, and the hi her investments behind brands. )onse8uently, -.I/ increased by 2.2E. 6 lower tax char e for the year resulted in a -6/ rowth of 2*.?E. Net -rofit and Earnin s -er 5hare at 1s D.0+, rew by 2C.DE. (r "arish (anwani, )hairman commentedF L>e have sustained the rowth momentum in 7ecember 8uarter and it continues to be broad based across "-) and Foods cate ories, particularly, in the competitive cate ories of $aundry and 5hampoo. /his was driven by hi her investment behind our brands with excitin si nificantly hi her levels of 6,- spends. of six years. 9ur strate ic priority remains unchan ed. leadership and >e will continue to innovations, excellent activation, new initiatives in )ustomer (ana ement and with /he double di it sales ap rowth of over 22E for the year *++@ has been achieved after a

levera e our focused portfolio of powerful brands to sustain market row our market position across strate ic brands and cate ories. In a competitive landscape, we shall continue to deliver

69

consumer value and invest behind our brands. in the competitive context, achievin

>e reco ni4e the

challen e of inflationary cost pressures driven by crude oil prices and, cost leadership across the extended supply chain continues to be a key priority.J

'I1I'EN' /he .oard of 7irectors at their meetin held on February 20 th, *++D eneral

has proposed a final dividend of 1s *.@+ per share of 1e 2 each, sub!ect to the approval of the shareholders at the annual meetin . /his alon with the interim dividend of 1s *.@+ per share

amounts to a total dividend of 1s @.++ per share for the year *++@.

"#$ is India:s lar est Fast (ovin touchin

)onsumer Goods company, "#$'s mission is to /he

the lives of two out of three Indians.

add vitality to life through its presence in over *+ distinct cate ories in "ome , -ersonal )are -roducts and Foods , .evera es. care, with brands that help people feel out of life. &*L T#ANSFE#S TEA ESTATES IN'IA TO MA06ELL 4OL'EN TEA P#I1ATE LIMITE' !umbai" !ar#h $%" &$$': "industan #nilever $imited transferred its entire shareholdin %"#$& has ood, look ood and company meets everyday needs for nutrition, hy iene, and personal et more

in its 2++E subsidiary /ea Estates

India $imited %/EI$& to (axwell Golden /ea -rivate $imited %(G/&, a >oodbriar Group company on (arch 2, *++D. /EI$ owns ; tea estates

70

and D factories for processin tons.

tea in the hi hGyieldin

belt of

/amilnadu with an avera e annual output of approx. 2+,@++ metric

>oodbriar Group has interests in plantations, insurance services and real estate. /he Group's rowin ardens are spread across the premium tea re ions in /amilnadu and <erala. "#$ mana ement believes terms

that the proposed transfer to >oodbriar Group is in the best interest of the tea plantation business and all its stakeholders. Existin and conditions of services of all /EI$ employees will be fully protected in accordance with applicable laws and terms of their employment. /he ac8uisition of /EI$ by >oodbriar Group will provide scale and brin /EI$ in syner y benefits to >oodbriar Group, as a lar e portion of ardens are conti uous to the existin tea ardens of >oodbriar

Group. )anara .ank, (adurai )ircle has funded the debt component to >oodbriar Group for this ac8uisition. >ith this disposal of shareholdin in /EI$, "#$ has completed its exit

from its tea plantations business both in 5outh India and 6ssam. It may be recalled that "#$ had sold its interests in 1ossell Industries $imited and 7oom 7ooma /ea )ompany $imited in 6ssam durin last 2* months. 75- (errill $ynch $imited acted as financial advisor to "industan #nilever $imited . A(out &*L; the

71

"#$ is India:s lar est Fast (ovin

)onsumer Goods )ompany,

touchin the lives of two out of three Indians. "#$:s mission is to =add vitality to life= throu h its presence in over *+ distinct cate ories in "ome , -ersonal )are -roducts and Foods , .evera es. /he company meets everyday needs for nutrition, hy iene, and personal care, with brands that help people feel ood, look ood and et more out of life. For more information visit www."#$.com

COMPETITO#S T$e Procter % 4am(le Company Company Profile /he -rocter , Gamble )ompany %-,G& is a brand behemoth. /he world:s S2 maker of household products courts market share and billionGdollar brands. -,G:s products fall into three cate oriesF lobal beauty care3 lobal health, baby, and family care3 and lobal household care. It also makes pet food and water filters and produces soap operas %6s the >orld /urns&. (ore than *+ of -,G:s brands are billionGdollar sellers %includin 6ctonel, 6lwaysI>hisper, .ounty, )harmin, )rest, 7ownyI$enor, Fol ers,
72

Iams, 9lay, -ampers, -antene, -rin les, /ide, and >ella&. 6c8uisitive -,G bou ht )lairol in *++2 and a ma!ority of >ella in *++B. Its purchase of Gillette in late *++@ was its bi company history. Financial &i"$li"$t! Fiscal Oear EndF 1evenue %*++@&F 1evenue Growth %2 yr&F Employees %*++@&F Employee Growth %2 yr&F June @DC02.++ ( 2+.0+E 22+,+++ +.++E est buy in

#ESEA#C& MET&O'OLO42
/he section includes the overall research desi n, the samplin procedure, the data collection method, the field method, and analysis and procedure. #ESEA#C& 'ESI4N For this research pro!ect exploratory method is usin 'ATA COLLECTION MET&O' /he data collect for the research can be classified as primary data and secondary data. -rimary data is by visitin existin customer and expected customer of "industan #nilever $imited and makin them fill up the 8uestionnaire. 5econdary data is from internet, books, ma a4ine etc.

1E5E61)" IN5/1#(EN/

73

/he instrument use for data collection is structured 8uestionnaire. Kuestion is open and close ended dependin that needed to be elicited. I am also usin assess the attitude of the customer. SAMPLIN4 PLAN <eepin samplin all the constrains in mind a sample si4e of 2++ people ./he procedure is systematic samplin upon the information techni8ue to the scalin

74

SCOPE
/he Indian F()G market currently appears to be at a crossroads, and "#$ are attemptin eneralities. /his meanwhile, is 8uite unlike the west where buyers consider aesthetics, comfort and safety, not necessarily in that order, before finalisin a purchase. LIt's smarter to think about emotions and what a "#$ attitudes, if marketers are to do a better !ob of marryin to chan e customer perceptions of their brands motivations appear to be replacin and where specific buyin

offers to the consumer's ima e of the offerin s. 6nother important outcome of the research is the believability of the claims. (ost of the claims are realistic and easy to understand. (ost of the people don't understand the 8uality claims by "#$. /he mindset of the Indian consumer is such that he is deli hted if he buys a pen a little cheaper than his nei hbour. /hin s are, however, slowly chan in and customers at the upper end of the market are now ready to pay more for more. I hope that this approach will soon enter the new era, maybe not with the same intensity . L5uccess will lar ely be determined to the extent a company can differentiate itself in terms of intan ibles that o with a -roductJ. /hus, success could well hin e on the best of bundle of services that "#$ provides."#$ rew from 4ero to the *,*D; (illion R, mark and the number 9ne F()G company in India this year. $ookin at the present scenario it can be said that thou h there is lot of competition in the market but "#$ is pickin up well. /he landmark achievement comes in C0 years in India after clinchin its first overseas sale.

75

FIN'IN4S, 'ATA ANAL2SIS AN' CONCL*SIONS COMPA#E' 6IT& P#OCTE# AN' 4AMBLE LT'+

6&EN

Findings 9n the basis of research, we found that there is a nominal difference in the efficiency of "industan leaver limited. visGTGvis -rocter and Gamble $td. I have reached to this conclusion on the basis of followin findin s. /hey are as follows.

Product line &indu!tan leaver limited "#$ "ome , -ersonnel )are U In personal >ash they have $ux , $ifebuoy, $iril, "amam, .ree4e, 7ove, -ears and 1exona . In $aundry they have 5urf Excel, 1in and >heel. In skin care their brands are Fair N $ovely and -onds. In hair )are they have 5unsilk Naturals and )linic 6ll clear. In 9ral )are their brands are -epsodent and )loseGup. In 7eodorants they have 6xe and 1exona. In )olour )osmetics they have $akeme. In 6yurvedic -ersonal 6nd "ealth )are they have 6yush.

76

FOO'S 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.

6ATE# "industan #nilever $imited has launched pueit, the most advanced in home water purifier in the world.

Procter and 4am(le -,G "y iene and "ealth care ltd. markets several leadin brandsF >hisper sanitary napkins in the Feminine "y iene cate ory3 "ealth care products such as Aicks Aapo1ub, vicks action @++, Aicks )ou h 7rops, Aicks Inhaler3 skin care and cosmetic products vi4. 9ld 5pice. -,G "ome -roducts $td. markets several leadin brands. In Fabric )are -,G has two of its world leadin deter ents /ide and 6riel, in "air )are they have -antene -ro A, "ead , 5houlders and 1e!oice. In .aby )are they have -ampers.

CONCL*SION= 6s "industan #nilever $imited has more brands in its basket then -rocter and amble so it is more close to common man and touchin his or her daily life in a more comprehensive manner.

77

78

DEALERS &indu!tan leaver limited >hile choosin the dealers "#$ mainly emphasi4es on the Nmarket potential of that area, dealer's financial position, and dealers back round %previous business&, present business, oodwill and risk takin capabilities ,by the ood responsibility of the dealer.

Procter and 4am(le there is no difference as such in the process of selection of dealers in -rocter and Gamble also. $ike "#$, -,G also considers dealer's financial position3 present business, oodwill and risk takin capabilities.

Conclu!ion; 7ealers of "#$ are satisfied by the companies support in there sales because the company provides them with various schemes and discounts, whereas satisfaction of -,G dealers lies in ood promotional activities, advertisement and the flexibility that the company provides them. 6ccordin to the senior officials of -,G it was found that it's a volume based company, hence all the above stated parameters helps the dealer to attract more and more customers. MODE OF TRANSPORTATION &indu!tan leaver limitedD "#$ uses modified trucks and rails to deliver the products from various production sites to the dealers. /hey are usin new state of the art technolo y so that they can even track every sin le bottle of shampoo. /ransportation cost is shared by "#$ and the dealer. Procter and 4am(le -,G is also usin road and railway transportation system to deliver product from various production sites to the dealers. /hey are also usin latest Information /echnolo y to track there consi nment whose backend is mana ed by infosys. Each dealer has to keep the Good 1eceipt Note %G1N& number and report of the whole items of delivered products. /ransportation cost is paid by -,G.

79

Conclu!ion; .oth -,G and "#$ uses advanced trackin technolo y to track the oods and both companies use railways and roadways for transportin there products. In "#$ transportation cost is shared by "#$ and the dealer, where as at -,G, transportation cost is paid by -,G.

FLEXIBILITY

&indu!tan leaver limited 6s far as flexibility is concerned3 our roup found that "#$ provides more flexibility in terms of delivery of produce. "#$ has there own warehouses in every state and if the dealer orders more , he is supplied with the products in time. Procter and 4am(le 6s far as flexibility is concerned3 our roup found that -,G does not provides more flexibility in terms of delivery of produce and in takin order from dealers.

Conclu!ion; our roup has found that 7ealers of "#$ are more satisfied than the dealers of -,G and therefore "#$ is a step ahead in terms of flexibility of placin orders and acceptin orders from the dealers.

80

DISTRIBUTION CHANNEL STRUCTURE

&indu!tan *nilever limited= "industan #nilever $imited channel

structures consist of whole seller, mass retailers, rural and modern trade. /heir new approach to distribution is holistic and seeks a three way conver ence of product availability brand communication and brand experience. /hey are reinventin channels and redefinin are buildin new capabilities in trainin distributionVcreatin new the way current channels are serviced. /hey the lar e number of people

involved in these initiatives. Procter and "am(le= -rocter and distribution system usin considerable cost and amble's channel structure also

have whole sellers, mass retailers. /hey are revampin the company's efficient consumer response WE ) 1X iven the company while si nificantly process efficiencies principles. /he new distribution system has

availability and visibility of the company's product in the stores.

Conclu!ion= 9ur

roup has found that ".$.$. has more effective and iven

efficient distribution network as compared to - , G, which increases the availability and presence of "#$ product. "#$ is also emphasis on penetratin the rural market as well.

81

DEALING WITH UNSOLD & DAMAGED MERCHANDISE

&indu!tan *nilever Limited=It depends on the condition and type of the product. If company feels that it is not the fault of the dealer then company would return it, unsold products are mostly taken back by "#$ Procter And 4am(le= - , G replaces the dama ed product with the new one, it means that the dama ed product are replaced by new product. Conclu!ion= 9ur roup has found that both the companies take back the

the unsold product however - , G is more flexible in returnin flexible here.

dama ed product as compared to the "#$. "ence - , G is more

82

PERFORMANCE APPRAISAL SYSTEM

&indu!tan *nilever Limited= /he performance appraisal system in "industan #nilever $imited is done under the supervisory of the 6ppraisal supervisor. /he supervisor keep track of the performance of the employees and based on their performance he choose the ri ht method of performance appraisal. /he main method of performance appraisal that have been adopted by "industan #nilever $imited are BD+ de ree appraisal and supervisory appraisal methods. it is done as an early exercise and performance appraisal parameter is the past performance of the employees.

Procter And 4am(le= the performance appraisal system in -rocter and amble is also done under the supervisory officer and almost same method are used as in the "industan #nilever $imited .

Conclu!ion= the conclusion that our

roup has found that there is almost the same

hardly any differences is the performance appraisal methods in both the companies .both the companies are takin both the company were not willin measures and same parameters for performance appraisal , however to disclosed any chan es brou ht the past five years .both of in performance appraisal system durin

the companies said that there have been chan e in some areas and

83

which has shown positive results, but not willin and what chan es have been brou ht.

to

ive any reasons

TA#4ETS
&indu!tan *nilever Limited ; "#$ has different channel members with specified tar ets and they are intended to increase sales, "#$ has also made chan es in channel members durin there *++2G*++D to increase sales of the company. Every channel member has to fulfill iven tar ets, channel members expect the company of 19I. ets credit period of two weeks. /here was *++2G*++D to Every channel member

also chan e in performance appraisal system durin

improve sales. "#$ has also made chan es in commercial terms intended to increase the sales in different channels and also to increase profit mar ins to company. Procter And 4am(le= -,G also has different channel members with specified tar ets and they are intended to increase sales .-,G also made chan es in channel members durin *++2G*++D to increase et sales of the company. /he channel members expect 19I dependin on there knowled e and on there performance to. )hannel members credit period of B+ days. -ayment terms of -,G are also flexible to the channel members and -,G also has flexible payment terms -,G also offers many discounts to these channel members. -,G has made many chan es to there commercial terms durin increase sales. Conclu!ion=.oth "#$ and -,G are flexible to channel members, but "#$ runs some monopoly over the market by offerin a credit period of only two weeks where as -,G offers credit period of B+ days. "#$ *++2G*++D to

84

also sets tar ets to there channel members and provides very less mar ins to dealers compared to -,G.

SALES FUNCTIONING
&indu!tan *nilever Limited ; "#$ is emphasi4in on rural areas throu h pro!ect 5hakti these days and sales also have been increased and "#$ does not have any sales outlets "#$ assi ns sales territory to there sales persons accordin to there skill and experience and assi ns tar ets to them. -erformance appraisal of sales force is done by appraisal supervisor and it is done throu h BD+ de ree appraisal method, parameter used is performance of the sales personnel . "#$ adopts on the !ob and off the !ob trainin it is emphasi4ed on improvin promotions. Procter And 4am(le; -,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. -,G sets tar ets to there sales force on the basis of increase or decrease in demand and also accordin sales , sales territories are assi ned accordin to the previous to the capabilities of system to there sales force skill and experience of the sales

personnel. 5ales personnel are motivated throu h incentives and

the sales personnel, responsibility of the sales personnel is to clarify the doubts of the customer and make sales of the product. -erformance appraisal of sales force is done by the mana er by doin meetin with them parameters of appraisal is increase or decrease in and trainin process is emphasi4ed on skill and sales it is done on monthly basis. -,G trains their sales force by on the !ob trainin experience, -,G has also brou ht many chan es in the trainin

85

system that has affected its sales too. -,G motivates their sales force by providin them with tar ets and incentives.

Conclu!ionD .oth -,G and "#$ trains their sales force and has a ood performance appraisal system, -,G does appraisal on a monthly basis dependin it once in a year. on increase and decrease of sales where as "#$ does

86

#ECOMMEN'ATIONS
.oth the companies havin "#$ is already havin ood market share in India and it keep on

increasin . .oth the co. i.e. "#$ and -,G should open exclusive shop. exclusive shop in (umbai called 56NG6( 5/91E. .ut it is only in India so it should be increased. /he employee should be iven uniforms in which the name of the company should be printed, by doin this the sales people et motivated. /hese shops should be opened for *0 hours. /hey should offer *0 hours free home delivery system. /he delivery vehicle should be attractive the name of the company should be printed in that so that it becomes the sources of advertisement. /he companies should emphasis on its advertisement, there should be .16N7 FI/ in that. For example when lux launch its advertisement with sharukh khan with irls. It was heavily critici4ed because it was not fit with the brand. It adversely affect the opinion of the customer and it results in decrease in sales. .oth companies should emphasis their business in areas. /hey should penetrate their business in the rural areas. D?E of the Indian population lives in rural areas. /here is hu e market there and very less market has been penetrated. .oth these companies should concentrate on rural areas. -,G has been hardly been seen in the rural areas. 5o they should increase their presence.

87

/hey should increase their )51 activities in northern India. 6t present they are currently doin their )51 in southern India. 5o they should increase their activities in north India also.

S*44ESTIONS
Aey attri(ute component!; Aalue for money and )ustomer )are 9perational attributes. -hysical attributes. .rand Ima e. )ustomer 5pecific 7etails. In any correspondence with the customers the messa e should be sent in these components only to have the maximum benefit from the advertisement. independently. 6lso /he these components lorifyin should be dealt only of with the advertisements should speak

believable concepts rather than

the pretentious ones. /he

basic need of the customer need to be addressed which is actually not much expensive and better 8uality. "#$ sales rowth in !une *++0 was decreased due to the problem the most competitive -rice %(9-&, the iven by the

with promotion and pricin . 6lthou h bein shampoos are still not sellin bar ainin

product on the basis of the (arket 9peratin

much. /his is perhaps due to the

stress on the customer and the weak push

dealer to the particular item, when actually it should be sold like a hi h volume product. 6nother serious su estion is that "#$ must ettin ive ood attention to their all the products rice and all are not much attention. /he

88

dealers don't provide much support to the customers in makin

them

understand the real Kuality behind them. Either, the technical details should be presented in a clearer manner or the dealers need to be educated properly.

LIMITATIONS
Everythin in this world has its own advanta es and disadvanta es

which shows Nnothin is perfect'. Followin are the problems faced but it's a part of ameF 2. /I(E )9N5#(INGF It is very much obvious that it is a time consumin process. 5o much time has been spent for this purpose. *. $9> -61/I)I-6/I9NF 9bviously many respondents have not participated in this and have also created some problems which simply shows that they were not interested. B. .I65NE55F 5ometimes interested customers were also biased so the collected fi ures involve both positive and ne ative fi ures. 0. It does not cover all the aspects of the company. @. 5#.JE)/IAEF /his pro!ect only tells you what it is all about.

89

BIBLIO4#AP&2
2. /he /imes of India and "industan /imes *. /he Economic /imes B. )ompany's brochure 0. www. oo le.co.in @. www."#$.com

90

ANNE0*#E

SPECIMEN C*STOME# S*#1E2 /*ESTIONNAI#E

Name 6 e 6ddress

K2. "ow many members are there in your familyQ

K*. "ave you ever heard of "#$ %"industan #nilever $imited &Q OE5 YYYYYY If Oes, from whereQ Newspaper /elevision (a a4ines 9thers YYYYYYY N9 YYYYYY

KB. 6re you usin any "#$ productQ

91

OE5

N9

K0. If Oes, then are you satisfiedQ OE5 K@. If No, then reason bein -oor 8uality No services "i h prices 9thers N9

KD. >hich brand do you use in the followin cate ories F Per!onal 6a!$ $ux YYYYYYYYYY .ree4e 9thers YYYYYYYYYYY YYYYYYYYYYY

7ove YYYYYYYYYY Laundary

5urf Excel YYYYYYY >heel S in Care Fair,$ovely 5unslik Naturals Oral Care
92

1in 9thers

YYYYYYYY

YYYYYYYY YYYYYYYY

-ond's YYYYYYYY 9thers YYYYYYYY

-epsodent YYYYYYYY 9thers YYYYYYYY

)loseGup YYYYYYYY

93

De!d!rants 6xe YYYYYYYY $akme YYYYYYYY 1exona YYYYYYYY Colour Co!metic! $akme YYYYYYYY 9thers YYYYYYYY

KC.

>hat 1ecommendations or su

estions would you like to

ive for improvement of our productsQ

94

#ETAILE# S*#1E2 /*ESTIONNAI#E

2. 7o you keep products of -arle in your shopQ % please tick mark on the appropriate answer& a&.Oes . b&. No

%If the answer is yes then o to 8uestion numberF B & *. >hy don't you keep the products of -arle in your shop or why did you stop keepin its productsQ Oes a&. erratic supply b&. lack of demand c&. low mar in d&. no supplier e&. don't know about the company B. >hich products of "#$ do you keepQ -ersonal >ash $ux YYYYYYYYYY .ree4e 9thers YYYYYYYYYYY YYYYYYYYYYY No

7ove YYYYYYYYYY $aundary

5urf Excel YYYYYYY >heel

1in 9thers

YYYYYYYY

95

5kin )are Fair,$ovely 5unslik Naturals 9ral )are -epsodent YYYYYYYY 9thers 7eodorants 6xe YYYYYYYY $akme YYYYYYYY YYYYYYYY )loseGup YYYYYYYY YYYYYYYY YYYYYYYY -ond's YYYYYYYY 9thers YYYYYYYY

1exona YYYYYYYY )olour )osmetics $akme YYYYYYYY 9thers YYYYYYYY

0. >hat is the salesIdemand of the productQ 2. Aery "i h *. "i h B. 6vera e 0. 1arely @. Aery 1arely D. Never

96

@. From whom do you purchase your productQ 2&. *&. B&. 0&. 7istributor 7ealer 6 ency >holesaler

D. "ow do you rate the delivery process by the dealerQ 2. Excellent *. 6bove 6vera e B. 6vera e 0. .elow 6vera e @. Extremely -oor

C. "ow many dealers are there in the districtQ a&.9ne b&/wo. c&/hree. d&(ore than three.

97

;. >hich vehicle do they mainly use for deliveryQ 2&. /wo wheeler

a&. scootersYY , b&. motorbikeYY. *& /hree wheeler B& Four wheeler a& vanYY ,b& truckYY,c& othersYY. 2B. >hat are the other schemes and incentives offered by themQ YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY . 20. >hat improvements would you like to have in the distribution processQ YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY

PE#SONAL 'ETAILS; NameF YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY 6ddressF YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY )ont. No.F YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY 5i natureF YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY

98