A

Project study report

On
Training Undertaken
At
HINDUSTAN UNILEVER LIMITED
MARKETING STRATEGIES AND POLICIES
Submitted in partial fulfillment of the requirements for MBA (Master of
Business Administration

Submitted By:

Submitted To :

Saddam Hussain

Dr. Manish Jain

MBA 3rd Semester

HOD

ARYA INSTITUTE OF ENGINEERING & TECHNOLOGY

JAIPUR

PREFACE
Hindustan

Unilever Limited (formerly Hindustan Lever Limited) is Indias largest Fast

Moving Consumer Goods company with a sales turnover of more than Rs.10,000 crores. At
1

least one of its products reaches two thirds of Indian households. It has 35 brands and
employs more than 15,000 people. Its promoter company Unilever, a fortune 500
multinational, holds 51.42% equity. Unilever has presence in more than 100 countries
worldwide in FMCG sector.

Hindustan Unilever Limited (HUL), a subsidiary of Unilever, is a fast moving consumer

goods (FMCG) company based in India. The company focuses on efficient delivery to
consumers with an improved supply chain, brand building initiatives and innovation, which
has helped the company to sustain its leadership position in the overall FMCG category in
India.

This project is a sincere effort to look for the market potential in

FMCG industry. A

descriptive research procedure had been applied to come to the conclusions of the project.
A detailed questionnaire had been prepared and the responses of the concerned people
had been collected for the analysis.

Acknowledgement

I express my warmest thanks & deep sense of gratitude to the individuals for their generous
help in discussing the project and giving their valuable time in successful completion of this
project. Time to time I got constructive suggestions, guidance and encouragement.
I would like to express my deep thanks to Dr. Arvind Agarwal, President, Arya Group of
Colleges and Prof. M. L. Gupta, Principal, Arya Institute of Engineering & Technology,
Jaipur for extending me the opportunity of presenting the project and providing all the
necessary resources for this purpose.
With much pride and delight I would like to express my sincere thanks to Dr. Manish Jain
(Head of the department) for his excellent guidance and valuable suggestions throughout
the project work. I express heartfelt thanks to Mr. Anshul mathur (Project Guide) for her
wonderful support and for giving me an opportunity to present project report on
MARKETING STRATEGIES AND POLICIES.
I also want to give my humble regards to Mrs.Padma sharma,Mr.Parmod sharma,Mrs.
Nisha goyal,Mr.Anshul Mathur,Mrs Ankita Pareek,Mrs.Anchal and Mrs.Priyanka for
their valuable support and believe in my work. Without their sustained interest and
encouragement, this work could not have been possible to reach the state of completion
with satisfaction. In fact it is their real devotion to the development work, which instilled in
me, the need of a passionate commitment to pursue this project.
I am also grateful to all my friends for providing critical feedback and support whenever
required. There are times in such projects when the clock beats you time and again and
you run out of energy, you just want to finish it once and forever. Parents made me endure
such times with their unfailing humour and warm wishes.
I regret for any inadvertent omissions.

SADDAM HUSSAIN
MBA IIIrd SEM.

EXECUTIVE SUMMARY

The Hindustan Unilever Ltds(HUL) Inc has taken the opportunity to offer us a broader
view of FMCG category. The Hindustan Unilever Ltd (HLL) is Indias no.1 FMCG is able to
share with their market insights based upon unparalleled breath of consumer goods
experience.
Hindustan Unilever Ltd (HUL) has grown from strength to strength with new technologies
being introduced to make the HLL consumer goods business, one of the most efficient in
the world. The companys history dates back to 1931 when Unilever set up its first Indian
subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India
Limited (1933) and United Traders Limited (1935). These three companies merged to form
Hindustan Lever Limited in November 1956. Effective July 19, 2007 the company has
changed the name to Hindustan Unilever Limited.
Hindustan Unilever Limited (HUL), a subsidiary of Unilever, is a fast moving consumer
goods (FMCG) company based in India. The company focuses on efficient delivery to
consumers with an improved supply chain, brand building initiatives and innovation, which
has helped the company to sustain its leadership position in the overall FMCG category in
India.
Hindustan Unilever is Unilever's main operating business in India. It is the country's biggest
consumer goods company, and far and away the leading advertiser. HUL inhabits virtually
every sector of the consumer goods market, including several not occupied by Unilever in
other markets such as preserves and bakery products, and is also one of the countrys top
five exporters. In addition to FMCG products it is the country's biggest exporter of tea. It is
generally acknowledged to be one of India's best-run businesses, although performance
slowed dramatically between 2000 and 2004, prior to restructuring.
Unilever, which sells soap to more than 500 million Indians, may see global revenue growth
slow in 2010 as Procter & Gamble Co. and ITC Ltd. step up marketing in Asia's thirdbiggest economy.
The world's second-largest consumer products maker has relied on accelerating shipments
of Surf Excel detergent in India to make up for sluggish sales in Europe.Now Cincinnatibased Procter & Gamble is stocking Indian stores with Olay skin- care products after nearly
halving the local prices of Ariel and Tide detergents in 2004.
Asia and Africa, which make up about a third of Unilever's worldwide sales, will see their
share of the company's growth fall to 2 percent in 2010 from 3.3 percent in 2007, according
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to Brussels-based brokerage Petercam SA. Revenue from the two continents rose 11.4
percent in the first nine months of last year, helping offset 1.9 percent growth in Europe and
4.2 percent in North and South America.
Unilever's overall sales growth will slow to 4.9 percent in 2010 from an estimated 5.3
percent in 2007, according to the median of five analysts in a Bloomberg survey.

CONTENTS

 Introduction to the Industry

Introduction to the organization
Research Methodology
o Title of the study
o Duration of the project
o Objective of the study
o Types of Research
o Sample size & Techniques
o Scope of study
o Limitation of Study
Facts and Findings
Data Analysis & Interpretation
SWOT Analysis
Recommendation & Suggestions
Questionnaire
Bibliography

INTRODUCTION TO THE INDUSTRY

Products which have a quick turnover, and relatively low cost are known as Fast Moving
Consumer Goods (FMCG). FMCG products are those that get replaced within a year.
Examples of FMCG generally include a wide range of frequently purchased consumer
products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and
detergents, as well as other non-durables such as glassware, bulbs, batteries, paper
products, and plastic goods. FMCG may also include pharmaceuticals, consumer
electronics, packaged food products, soft drinks, tissue paper, and chocolate bars.

A subset of Products which have a quick turnover, and relatively low cost are known as Fast
Moving Consumer Goods (FMCG). and Laptops. These are replaced more frequently than
other electronic products. White goods in FMCG refer to household electronic items such
as Refrigerators, T.Vs, Music Systems, etc.

In 2007, the Rs. 48,000-crore FMCG segment was one of the fast growing industries in
India. According to the AC Nielsen India study, the industry grew 5.3% in value between
2006 and 2007.

Indian FMCG Sector

The Indian FMCG sector is the fourth largest in the economy and has a market size of
US$13.1 billion. Well-established distribution networks, as well as intense competition
between the organised and unorganised segments are the characteristics of this sector.
FMCG in India has a strong and competitive MNC presence across the entire value chain. It
has been predicted that the FMCG market will reach to US$ 33.4 billion in 2015 from US $
billion 11.6 in 2006. The middle class and the rural segments of the Indian population are
the most promising market for FMCG, and give brand makers the opportunity to convert
them to branded products. Most of the product categories like jams, toothpaste, skin care,
shampoos, etc, in India, have low per capita consumption as well as low penetration level,
but the potential for growth is huge.

The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid
urbanization, increased literacy levels, and rising per capita income.

The big firms are growing bigger and small-time companies are catching up as well.
According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by
MNCs, and the balance by Indian companies. Fifteen companies own these 62 brands, and
27 of these are owned by Hindustan Lever. Pepsi is at number three followed by Thums Up.
Britannia takes the fifth place, followed by Colgate (6), Nirma (7), Coca-Cola (8) and Parle
(9). These are figures the soft drink and cigarette companies have always shied away from
revealing. Personal care, cigarettes, and soft drinks are the three biggest categories in
FMCG. Between them, they account for 35 of the top 100 brands.

THE TOP 10 COMPANIES IN FMCG SECTOR

1.

Hindustan Unilever Ltd.

2.

ITC (Indian Tobacco Company)

3.

Nestl India

4.

GCMMF (AMUL)

5.

Dabur India

6.

Asian Paints (India)

7.

Cadbury India

8.

Britannia Industries

9.

Procter & Gamble Hygiene and Health Care

10. Marico Industries

The companies mentioned are the leaders in their respective sectors. The personal care
category has the largest number of brands, i.e., 21, inclusive of Lux, Lifebuoy, Fair and
Lovely, Vicks, and Ponds. There are 11 HLL brands in the 21, aggregating Rs. 3,799 crore
or 54% of the personal care category. Cigarettes account for 17% of the top 100 FMCG
sales, and just below the personal care category. ITC alone accounts for 60% volume
market share and 70% by value of all filter cigarettes in India.

The foods category in FMCG is gaining popularity with a swing of launches by HLL, ITC,
Godrej, and others. This category has 18 major brands, aggregating Rs. 4,637 crore. Nestle
and Amul slug it out in the powders segment. The food category has also seen innovations
like softies in ice creams, chapattis by HLL, ready to eat rice by HLL and pizzas by both
GCMMF and Godrej Pillsbury. This category seems to have faster development than the
stagnating personal care category. Amul, India's largest foods company, has a good
presence in the food category with its ice-creams, curd, milk, butter, cheese, and so on.
Britannia also ranks in the top 100 FMCG brands, dominates the biscuits category and has
launched a series of products at various prices.

In the household care category (like mosquito repellents), Godrej and Reckitt are two
players. Goodknight from Godrej, is worth above Rs 217 crore, followed by Reckitt's
Mortein at Rs 149 crore. In the shampoo category, HLL's Clinic and Sunsilk make it to the
top 100, although P&G's Head and Shoulders and Pantene are also trying hard to be
positioned on top. Clinic is nearly double the size of Sunsilk.

Dabur is among the top five FMCG companies in India and is a herbal specialist. With a
turnover of Rs. 19 billion (approx. US$ 420 million) in 2006-2007, Dabur has brands like
Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola and Real. Asian Paints is enjoying a
formidable presence in the Indian sub-continent, Southeast Asia, Far East, Middle East,
South Pacific, Caribbean, Africa and Europe. Asian Paints is India's largest paint company,
with a turnover of Rs.22.6 billion (around USD 513 million). Forbes Global magazine, USA,
ranked Asian Paints among the 200 Best Small Companies in the World .

Cadbury India is the market leader in the chocolate confectionery market with a 70%
market share and is ranked number two in the total food drinks market. Its popular brands
include Cadbury's Dairy Milk, 5 Star, Eclairs, and Gems. The Rs.15.6 billion (USD 380
Million) Marico is a leading Indian group in consumer products and services in the Global
Beauty and Wellness space.

Outlook
9

There is a huge growth potential for all the FMCG companies as the per capita
consumption of almost all products in the country is amongst the lowest in the world. Again
the demand or prospect could be increased further if these companies can change the
consumer's mindset and offer new generation products. Earlier, Indian consumers were
using non-branded apparel, but today, clothes of different brands are available and the
same consumers are willing to pay more for branded quality clothes. It's the quality,
promotion and innovation of products, which can drive many sectors.

INTRODUCTION TO THE ORGANIZATION

Hindustan Unilever A 75 Year Commitment

15,000 employees
1,200 managers
2,000 suppliers & associates
75 Manufacturing Locations
45 C&FAs, 4,000 Stockists
Total Coverage 6.3 Mln Outlets
Direct Coverage 1 Mln outlets

Population of INDIA: 1027 Mln

5,545 Towns
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 2.5 Mln outlets

6,38,000 Villages
5.0 Mln outlets

HISTORY OF HINDUSTAN UNILEVER LTD

It was in the summer of 1888 that Unilever of England first marketed Sunlight soap in
India. This was followed by brands like Pears and Vim. Vanaspati was launched in
1918 and Dalda came to the market in 1937.

In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati

Manufacturing Company, followed by Lever Brothers India Limited (1933) and United
Traders Limited (1935). These three companies merged to form HUL in November
1956.

A number of prominent companies came into the HUL fold as result of Unilevers
international acquisitions. These included Brooke Bond (1984), Lipton (1972) and
Ponds (1986).

In 1993, Tata Oil Mills Company (TOMCO) merged with HUL. Two years later, HUL
and yet another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme
Lever Limited.

Subsequently in 1998, Lakme Limited sold its brands to HUL and divested its 50 per
cent stake in the joint venture to the FMCG giant.

HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in
1994, Kimberly-Clark Lever Ltd, which markets Huggies diapers and Kotex sanitary
pads.

HUL has also set up a subsidiary in Nepal, Nepal Lever Limited (NLL), and its factory
represents the largest manufacturing investment in the Himalayan kingdom. In a
historic step, HUL picked up 74 per cent of the equity of Modern Foods from the
Indian government.
11

In 2002, HUL acquired the government s remaining stake in Modern Foods.

FMCG major Hindustan Unilever Limited (HUL), formerly known as Hindustan Lever
Limited, employs 36,000 people, including over 1,350 managers. It is one of the
earliest MNCs to have entered India

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organizational structure

Managing
Direc
tor

General Manager

Vice President

Marketing

Manufacturing

Sales

Finance

Distribution

PRESENT STATUS
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods
company, touching the lives of two out of three Indians with over 20 distinct categories in
Home & Personal Care Products and Foods & Beverages. They endow the company with a
scale of combined volumes of about 4 million tonnes and

sales of Rs.10,000crore.

HUL is also one of the country's largest exporters; it has been recognised as a Golden
Super Star Trading House by the Government of

India.

The mission that inspires HUL's over 15,000 employees, including over 1,300 managers, is
to "add vitality to life." HUL meets everyday needs for nutrition, hygiene, and personal care
with brands that help people feel good, look good and get more out of life. It is a mission
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HUL shares with its parent company, Unilever, which holds 51.55% of the equity. The rest of
the shareholding is distributed among 380,000 individual shareholders and financial
institutions.

HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk,
Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality
Wall's are household names across the country and span many categories - soaps,
detergents, personal products, tea, coffee, branded staples, ice cream and culinary
products. They are manufactured over 40 factories across India. The operations involve
over 2,000 suppliers and associates. HUL's distribution network, comprising about 4,000
redistribution stockiest, covering 6.3 million retail outlets reaching the entire urban
population ,and about 250 million rural consumer.

HUL has traditionally been a company, which incorporates latest technology in all its
operations. The Hindustan Unilever Research Centre (HLRC) was set up in 1958, and now
has facilities in Mumbai and Bangalore. HLRC and the Global Technology Centres in India
have over 200 highly qualified scientists and technologists, many with post-doctoral
experience acquired in the US and Europe.

HULS NEW GROWTH STRATEGY

After having fought a bitter price battle for market share with its rivals, Hindustan Unilever
Ltd (HUL), Indian subsidiary of the Anglo-Dutch consumer goods company Unilever Plc, is
now working on a new growth strategy for its laundry business.

Price cut or hike is not a long-term growth strategy. Pricing, in fact, is now passe, insists
Sudhanshu Vats, category head, home care.

Our strategy for growth, now is focused on product innovation, new consumer and retail
trends and aggressive marketing and promotions, he said.This comes even as Unilever is
scouting for a potential buyer for its laundry business in the US.

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HUL says it is quite upbeat about the segment and says the laundry segment is one of its
key growth areas.
We have done key innovations across the product portfolio and it is working for us, says
Vats. We successfully migrated from Rin Supreme to Surf Excel and Wheel Smart Srimati
which was rolled out in 2006is also on the right track.

HULs market share in the laundry segment grew to around 37.8% in the quarter ended
June from 35.5% in the same period last year, according the market research firm
ACNielsen. However, this time, the increase was not at the expense of price war with its
multinational rival Procter & Gamble Co. P&G also gained 0.5 percentage points, up to a
7.6% share. Nirma Ltd, the Ahmedabad-based manufacturer, however, saw its market
share dip by 1.7% percentage points to 13.5%.Wheel, a value brand that, according to Vats
contributes around 50% of HULs laundry segment revenues, increased its market share by
2 percentage points in the same period, with a total share of about 18%. According to
ACNielsen, the laundry industry in India was worth Rs7,908 crore in 2006 and rose 8.4%
over 2005. HUL doesnt report its laundry revenues separately but puts them under the
soaps and detergent category.

In 2006, HULs soaps and detergents segment contributed around Rs5,596 crore to the
companys total sales of Rs12,103 crore.

Laundry has been an attractive segment in the past and is likely to keep growing in the
near future. The recent price war between companies led to erosion in their profitability but
now, the industry is stabilizing, says Unmesh Sharma, an analyst at Macquarie Securities
here.
According to Vats, the laundry business is witnessing a surge in demand from cities and
HUL is focusing on Tier I and II cities to tap that demand.

15

Consumers today are buying more clothes, says Vats. Trends suggest that the usage of
detergents has gone up as a result. Also, with premium quality of clothes, people want to
use better and branded products.
Still, analysts remain cautious. Some of HULs recent moves, such as promotional
campaigns and advertising, seem right, says Macquaries Sharma. Still, it is too early to
say what result their new strategies.

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PRODUCT PROFILE
HULs business activities are divided into four broad areas:
Home and personal care
personal wash, fabric wash, home care, oral care, skin care, hair care, deodorants
and talcs, colour cosmetic
Foods
tea, coffee, branded staples, culinary products, ice creams, Modern Foods ranges
New Ventures
Hindustan Lever Network, Ayush ayurvedic products and services, Sangam, Pureit
water purifiers.
Exports
HPC, beverages, marine products, rice

BRANDS

17

HUL s brands are household names across the country. They include:
\Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond s, Sunsilk, Clinic, Pepsodent,
Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna and Kwality Walls.

Research Methodology

Title
MARKETING STRATEGIES AND POLICIES
(Analysis and Scope of Marketing of FMCG Products)
(with special reference to Hindustan Unilever)

Duration of the Project

45 Days

Justification of the Title

The title is self explanatory as it is clear that the study is all about the financial services in
India and the growth and awareness of insurance services. It also studies the awareness of
Hindustan Unilever Co. Ltd. and its products among the people.

OBJECTIVE OF THE STUDY

To identify the marketing strategies and policies of Hindustan Unilever Limited

To analyse the influence of rival companys strategies on the performance of
Hindustan Unilever Limited
To analyse the various strategies adopted by the company to gain competitive
advantage

18

Type of Research
Research was of Exploratory and Descriptive Nature.

Exploratory Research: Exploratory research is a type of research conducted for a

problem that has not been clearly defined.Exploratory research helps determine the
best research design,data collection method and selection of subjects.

Descriptive Nature: Descriptive research also known as statistical research

describes data and characteristics about the population or phenomenon being
studied.however

it

does

not

answer

questions

about

characterstices occurred which is done under analytic research.

Sample Size and Technique

Sample Size: 100 samples
Sampling Technique: Convenient Sampling
Sampling Area: Jaipur

Data Collection
19

how/when/why

the

Data was collected from both primary as well as secondary sources:

Primary Data Collection:
# Sample questionnaire was prepared and the same was asked to fill in hands
# Personal interviews were conducted.

Secondary Data Collection:

# Secondary data was collected by the information given
- through the material provided by Hindustan Unilever Co. Ltd.
- magazines
- websites

Scope of the Study

A big boom has been witnessed in FMCG Industry in recent times. A large number of new
players have entered the market and are vying to gain market share in this
improving market. The study deals with Hindustan Unilever Co. Ltd.

rapidly

in focus and the

various segments that it caters to. The study then goes on to evaluate and analyze the
findings so as to present a clear picture of trends in the Insurance sector.

Limitations of the Study

The training was for a very short period of time. Thus it was difficult to analyze the
market thoroughly and come to any conclusion in such a short span of time.

The market study was to a limited area.

Some samples i.e. the respondents were reluctant to answer.

Errors may occur during data collection.

Errors may occur during analysis of data.

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FACTS & FINDINGS

The primary business of the company is for FMCG use. The company also produces oil
meal, food product from soya & value added products from downstream processing of
commodities.

The size of Indian FMCG industry is estimated around 85,000 crore.

The domestic FMCG consumption has been steadily growing & is estimated to be over 12.5
million MT in the currently year with fmcg products in which the company has a dominant
presence contributing over 50%.
In view of the demand supply gap, about 35-40% of the domestic FMCG consumption is
met by imports, with this accounting of over 95% of the imported volume.
The Hindustan Unilevers product 2010 of 9 million M.T was the highest ever in India.

CURRENT MARKET SCENARIO AND TRENDS

The category usage is universal and the market is quite dynamic and complex.

This market has been witnessing to several changes lately, which includes both :

CONSUMER RELATED

Increase in disposable income & purchase power

Changing societal norms & healthy & quality factor in all the product segments

Rising desire for convenience & I want more attitude

MARKET RELATED

Growing power of modern retail trade; has given new challenges and opportunities to
the marketers

Increasing influence of dieticians and doctors in the category causing lower usage,
frequent change of the oil species and looking for healthy option

21

Hindustan Unilever an established & key player in the Indian FMCG market, wants to
enhance its footprints in the growing modern retail industry

DATA ANALYSIS
PEST ANALYSIS
P: since the budget range is decontrolled, no political effects are envisaged.
E:

1) increasing per capita income resulting in higher

Disposable income
2) Growing middle class/urban population increase in
Demand
3) Low cost of production better penetration

S:

1) Per capita consumption expected to increase fashion

2) Increasing gifts culture increase in demand

T:

Will have to reinforce technology to international levels

Once India is a fully free economy.

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FIVE PS OF MARKETING
Product
Satisfaction suffices. But delight dazzles the average company will compete for customer
by conforming to her expectation consistently. But the winner will surpass them by
constantly exceeding her expectation, delivering to her door step additional benefits which
she would never have imagined possible. Hindustan Unilever Ltd(HUL) offer such product.
The wide variety products offered by the company include:
The companys popular products include:

Bathing soaps:
Lux, Lifebuoy, Liril, Hamam, Breeze, Dove, Pears and Rexona

Laundry items:
Surf Excel, Rin and Wheel

Skin care:
Fair & Lovely, Ponds and Vaseline

Hair care:
Sunsilk and Clinic

Oral care:
Pepsodent and Close up

Deodorants:
Axe and Rexona

Colour cosmetics:
Lakme

Ayurvedic:
Ayush

Tea:
Brooke Bond and Lipton
23

Coffee:
Bru

Foods:
Kissan, Annapurna and Knorr

Ice cream:
Kwality Walls .

Pricing
Make no mistake. Second P of marketing is not another name for blindly lowering prices
and relying on this strategy alone to increase sales dramatically. The strategy used by
Hindustan Unilever Ltd(HUL) is for matching the value that customer pays to buy the
product with the expectation they have about what the production is worth to them.
Hindustan Unilever Ltd(HUL) has launched various products which cater to all customer
segments. So every customer segment has different price expectation from the product.
Therefore maximizing the returns involves identifying right price level for each segment, and
then progressively moving through them.

Physical Distribution Place

BRAND ISNT THE ONLY ANY MORE. Marketers and finance manager need a new term
to evaluate their business:
Distribution Equity. It takes much more time and effort to build, but once built, distribution
equity is much together to erode.
The fundamental axiom of Indian consumer market is this:
You can set up a state-of the-art manufacturing facility, hire the hottest strategies on the
block, swamp prime television with best Ads, but the end of it all, you would be know of
selling your products. The cardinal task before the Indian market is managing is to shoehorn its product on retail shelves. Buyers are paying for distribution equity not brand equity
and market shares.
Why does the company need distribution equity more anything in India? With technology
and competitive pressure slash in it is becoming increasing difficult for marketers to retain a
24

unique product differentiation for ling period. In a product and price parity situation, the
brand that sells more is the one that reaches the highest number of customers.
India The operations involve over 2,000 suppliers and associates. HUL's distribution
network, comprising about 4,000 redistribution stockists, covering 6.3 million retail outlets
reaching the entire urban population, and about 250 million rural consumers.television has
already primed and population for consumption, and the marketer who can get to the to the
consumer ahead of competition will give a hard to overtake lead. But getting their
means managing wildly different terrains-climate, language, value system, life style,
transport and communication network. And your brand equity isnt going to help when it
comes to tackling these issues.
Own distribution network consist of clearing and forwarding (C&F) agents & distribution
stockiest. This network of distribution can either contact wholesalers and which in turn
retailers or the distributors can contact to the retailers directly.
Once the stock product reaches retailers, the prospective customers can have access to
the product.
Hindustan Unilever Ltd(HUL) distributes the product in the manner stated above.
Hindustan Unilever Ltd(HUL) distribution network has expanded. Beside use of improved
logistics, Hindustan Unilever Ltd(HUL) is also attempting to improve the distribution quality.
To address the issue of product stability, it has installed visi colors at several outlets. This
helps in maintaining consumption in summer when sales usually drops due to the fact that
the heal effects product quality and thereby off takes.
Looking at the low penetration of few products, a distribution expansion would itself being
incremental volume. The other reason is arch rival Procter & Gamble Co. reaches more
than a million retailers.
This increase in distribution is going to be accompanied by reduction in channel costs.
Hindustan Unilever Ltd(HUL) marketing costs, at 18% of total costs, is much higher than
Procter & Gamble Co. The company is looking to reduce this parity level. At Hindustan
Unilever Ltd(HUL), they believe that selling FMCG is it like selling soft drinks.

25

Promotion
If an advertisement is to communicate effectively, the receiver must at least half want it to,
and be prepared too take step toward the sender. Effective advertising is rarely hectoring or
loudly explicit. It often both attracts and generates arm feelings. More often than not, a
successful campaign has a stronger element of the unexpected a quality that good
advertising shares with much worthwhile literature.
To penetrate into the inner recesses of her memory, communication must first ensure
exposure, grab her attention evoke her comprehension, grab her acceptance and then
extract retention competing with thousands of other units of communication trying to do the
same.
Finding showed that the adults felt too conscious to be seen consuming a product actually
meant for children. The strategic response address the emotional appeal of the band to the
child within the adult.
Unilever Ltd(HUL)

Naturally, that produced just the value vacuum that Hindustan

was looking to fill. Thereafter it was the job of the advertising to

communicate customer the wonderful feeling that he could experience by re-discoursing the
careful, unself conscious, pleasure seeking child within himself a graft these feeling
onto the Ad campaign like hasso to khul k hasso for close up, cream bathing bar for
dove soap and daag ache hai for surf excel have been sure shot winner with the
audience.
It has also launched Pureit, a home water purifier which supplies drinking water without
boiling/need of electricity , As well as outdoor and radio ads, ad agency contract has
created communication for cinemas and even ATM machines for the brand.
All ICICI s ATM a message flashes on the screen as soon as customer insert his ATM card.
Something familiar is planned for phone-book as well. In cinemas, Hindustan
Unilever(Ltd)has a message on-screen just before the lights are dimmed to give them a
chance to get their product There will also be after dinner sampling in restaurants to begin
with, 30 catteries in Mumbai have been selected.
Ad spend in 2000 was about 14% of sales and the management said that plans to maintain
as spend at this level in the current year also.
Ad since any discussion today would be incomplete without mention e word, the
management plans to tap this new channel of marketing. Beside the company website (i.e.
26

www.unilever.com), that the company has launched, it had also entered into various
marketing relationship with other portals, specially targeted during festivals and events such
as Valentines day, etc.
Its a combination of spiffing up its key brand, researching and improving the newer
products that havent taken off, supported with high ad spends that Hindustan
Unilever(Ltd) hopes will see it emerges stronger after the current slowdown, as well as
expand the market.

Positioning
In the 1970s consumers were ready to pay more for more, and luxury goods flourished. In
the 1980s, consumers began to demand more for same, and the discounting era grew
strong. Todays consumer demanding more for less, and the winner will be that super
value marketers. Some of todays most successful companies recognize those customers
are more educated and able to recognize true customer value
Positioning is simply concentrating on an idea or even a word defines that company in
the mind of the consumer. It is more efficient to market one successful concept to one large
group of people than 50 product or service ideas to 50 separate group repositioning is a
must when customer attitude have changed and product have strayed away from the
consumers long standing perception of them
Hindustan Unilever(Ltd) is an anchor in sea of consumer products. As a variety of
competitive claims assails her senses, today customer uses complicated decision making
process to assess the alternative before making a purchase. Since Hindustan Unilever(Ltd)
is more clearly associated with a particular set of attributes in terms of benefits and prices,
the quicker becomes her search process.
Positioning of individual product:
1) Lifebuoy is one of Unilevers oldest brands with more than a hundred-year history,
as www.unilever.com informs. Lifebuoy has become more than just a red bar of
soap today the brand provides hygiene and health solutions for families
2) Fair & Lovely, a hot-selling fairness cream, which promises a lighter skin tone for
many of Indias complexion-conscious consumers
.

HINDUSTAN UNILEVERS MARKET SEGMENTATION

27

Market place for any product is comprised of many different segments of consumers, each
with different needs and wants. Markets segmentation can be defined in a number of ways
such as:
Demographic variables (e.g. Consumers are groups, gender, material states income
etc)
The lifestyle of consumers (i.e. their interests and activities) the benefits which
consumers look for in a product or on the occasions when the product might be
consumed.
Hindustan Unilever(Ltd) takes into account all these factors when producing a range
of products. It targets different segments within the market, such as the:
Break segment products which are normally consume as a snatched break and
often with tea and coffee.
Impulse segment these products are often purchase on impulse, used these and
then. They include product such as close up.
Take home segment this describes product that are normally purchased in
supermarkets, taken home consumed at a later stage.

28

The Real Taste of Rejuvenation

After having fought a bitter price battle for market share with its rivals, Hindustan Unilever
Ltd (HUL), Indian subsidiary of the Anglo-Dutch consumer goods company Unilever Plc, is
now working on a new growth strategy for its laundry business.
Price cut or hike is not a long-term growth strategy. Pricing, in fact, is now passe, insists
Sudhanshu Vats, category head, home care.
Our strategy for growth, now is focused on product innovation, new consumer and retail
trends and aggressive marketing and promotions, he said.
This comes even as Unilever is scouting for a potential buyer for its laundry business in the
US.
HUL says it is quite upbeat about the segment and says the laundry segment is one of its
key growth areas.
We have done key innovations across the product portfolio and it is working for us, says
Vats. We successfully migrated from Rin Supreme to Surf Excel and Wheel Smart Srimati
which was rolled out in 2006is also on the right track.
HULs market share in the laundry segment grew to around 37.8% in the quarter ended
June from 35.5% in the same period last year.
According to ACNielsen, the laundry industry in India was worth Rs7,908 crore in 2006 and
rose 8.4% over 2005. HUL doesnt report its laundry revenues separately but puts them
under the soaps and detergent category.
In 2006, HULs soaps and detergents segment contributed around Rs5,596 crore to the
companys total sales of Rs12,103 crore.

29

Laundry has been an attractive segment in the past and is likely to keep growing in the
near future. The recent price war between companies led to erosion in their profitability but
now, the industry is stabilizing.

COMPETITIVE STRATEGY
As Competition Heats Up, Indias Top Consumer-Products Company Woos Affluent
Shoppers With Global Brands Like Dove, While Cooking Up Its Foods Biz
The middle-aged Briton strolling the aisles and checking out the products doesnt attract
much notice from other shoppers in Mumbais Hypercity, the India hypermarket chain.
Thats how Douglas Baillie likes it. Baillie, the managing director of Hindustan Unilever,
Indias premier consumer-products company, wants to see how his products are stocked,
what consumers are buying, and how shoppers are reacting to competitive brands. Its
primary market research at its most elemental, and its best done incognito.
Hindustan Unilever has traditionally relied on small traders and mom-and-pop corner stores
to retail its products. But Indias recent retail boom has created large stores and malls, so
the company wants to make sure its in with the new marketing crowd. Hence Baillies
Hypercity visits, and the calls he makes on the headquarters of the big retail chains.
This is quite a change for Hindustan Unilever, whose executives used to have emissaries
make obeisance at Lever house in downtown Mumbai. I cant imagine any head from
Lever House ever visiting other company offices like this, says an amazed Damodar Mall,
chief executive of innovation and incubation at Pantaloon Retail, Indias largest retailer and
a former manager at Hindustan Unilever.

30

Facing Competition From P&G And Others

The reason for this new found egalitarianism is that the $3 billion Hindustan Unilever is
facing serious competition. The company, which is practically synonymous with India,
makes everything from detergents, soaps, and shampoos to soups, sauces and tea, and
dominates most of those categories. Yet early this year, Finnish handset maker Nokia
(NOK) dislodged it as the multinational with the highest revenues in India, after ringing up
India-based sales of $3.5 billion.

31

Now Hindustan Unilever is under siege from aggressive Indian and foreign competitors
such as Procter & Gamble (PG), Nivea, and LOral. In the last year, ACNielsen data
shows, Hindustan Unilevers lead in hand soaps, including the popular Lux, is down from
55.2% to 54%. Favorite detergent brands like Surf Excel and Rin are barely hanging onto
their 37% share. Hindustan Lever tea brands like Brooke Bond and Lipton have dipped
from a combined market share of 29.2% to 24.3%.
All this has taken a toll on Hindustan Unilevers operating margins, down from 21% a few
years ago to just 11.84% now. Thats why the company is wooing consumers in big retail
stores. These newly affluent shoppers present the best hope for the companys future in
India. According to retail consultant KSA Technopak, organized retail, currently just 3.5% of
Indias total $336 billion retail

market, will grow to 28% by

2017.

Hindustan Unilevers managers hope their revenues from big retail will increase from 5%
today to over 25% in 2012. It is a big game for us, says D. Sundaram, Hindustan
Unilevers finance director. Hindustan Unilevers strategy is to market its premium products
through the hundreds of megastores springing up across India.
That dovetails with parent company Unilevers new global realignment of products.Parent
Unilever will develop the brands and streamline product offerings across the world, while its
subsidiaries will

sell

the

products.

This means that all of Unilevers brands will be available across global markets, fitting in
quite nicely with Indias turn towards more international products being sold in
supermarkets.
Yet this is still a dramatic change for Hindustan Unilever which, not long ago, was the most
successful and profitable company in the Unilever group, the crown jewel whose managers
had free rein to develop and build brands suitable for the local market. The takeover of
Hindustan Lever by Unilever became evident in March, 2006, when Baillie, a Zimbabweborn British national, became the first foreigner in four decades to head the Indiancompany.

From Local Player To Multinational

Overnight the change sent shock waves through India. For many decades most Indians
thought Hindustan Lever was a local company, not a multinational, and the cream of Indias
management graduates made their careers there. Then in February, 2007, the company,

32

then known as Hindustan Lever, was rechristened Hindustan Unilever to reflect its
parentage.
Baillie first had to sort out some past problems. For instance, in 2002 the company adopted
Unilevers global strategy of focusing on just 30 power brands instead of the total basket of
110 more local brands. While the strategy aimed to conserve management energy, it also
left the field wide open for competitors to attack Hindustan Unilever in the niche soap and
detergent markets where its smaller brands held sway.
And there was some stiff competition from rival Procter & Gamble; a 2004 price war with
P&G in the detergent business forced Hindustan Unilever to slash prices on its premium
brand Surf Excel. The effect: The companys sales and operating profits stagnated at $2.5
billion for five years while operating profit plunged 37%, to $274 million in 2004. Last year
operating profits reached $357 million, thanks to price increases. But the rich margins of the
past

have

not

returned.

Tougher To Hold On To Market Share

Baillie says he intends to get the company back into the competitive growth zone and do
this in a manner that we can consistently deliver. He also wants to expand the foods
business in conjunction with the parent, where foods bring in half the revenues globally. In
India, the companys home and personal care businesses account for 80% of revenues and
85% of profits at Hindustan Unilever, while the companys track record in foods has been
dismal. Indeed, it has phased out more food productswheat flour, confectionery, frozen
breadthan it has launched.
Hindustan Unilever executives are realistic about the new era in which it now operates.
Nitin Paranjpe, executive director in charge of the home and personal care business,
admits that its now tougher to hold on to market share. If India is a great story, we arent
the only ones seeing it. Rivals like P&G and Nivea have also copied Hindustan Unilevers
best innovation: the small shampoo sachets it pioneered in the 1980s, which sold for less
than 2 cents each and which expanded the market for Hindustan Unilever products among
Indias rural masses. Currently, 80% of Indian shampoo sales come from sachets. But today
even LOreal has sachets of its Fructis shampoo.
In June, the Tata Groups beverage company Tata Tea overtook Hindustan Unilever as
Indias largest selling tea brand. According to ACNielsen, Tata Teas market share increased
33

from 16.7% in March, 2006, to 19.9% in July, 2007, while Hindustan Unilever slipped from
26.1% to 19.5%. Tata Tea is exultant. Managing Director Percy Siganporia says the gain is
a dream comes true for us.

FUTURE COMPETITIVE STRATEGY

2010 Expectations
P&G, the world's largest consumer-goods maker, will continue to gain share in the next five
years in India, according to Ali Dibadj, an analyst at Sanford C. Bernstein in New York, who
rates the stock ``outperform.'' Hindustan Unilever Ltd., 52 percent owned by the Londonand Rotterdam-based parent, lost ground in shampoo, bath soap, toothpaste and tea in the
quarter ended Sept. 30, compared with the year earlier, according to the company. Its share
of the shampoo market declined by more than a percentage point to 47.7 percent, the
company said.
ITC, the largest Indian cigarette maker and partly owned by British American Tobacco Plc,
is also making inroads. It started selling more brands including Fiama Di Wills shampoo and
Superia soap last year as the government raised tobacco taxes.

`Profitable' Cigarettes
The tobacco maker ``has a very profitable cigarettes business which will help it to invest
and expand its personal- care portfolio,'' said Anand Shah, an analyst at Angel Broking in
Mumbai, who has a ``neutral'' rating on the stock. ``It has the ability to take losses in this
segment as long as it grows its sales. This strategy will still satisfy investors.''
Rising prices of raw materials have made it more difficult for consumer-goods makers to
pass on higher costs. The price of palm oil, used to make soaps and foods, has surged 70
percent in the past year.
``Given the competition, profitability will continue to be under pressure,'' said Macquarie
Securities Ltd. analyst Unmesh Sharma, who has an ``underperform'' rating on Hindustan
Unilever. He expects the stock to drop to 180 rupees ($4.57) in the next year from 190.9
rupees. The company has a market value of about $11.8 billion.

34

India is Unilever's biggest market in Asia, generating about 6 percent of annual sales. It has
sold soap in the country since 1888 and controls about half of the sales of products such as
skin creams, bathing soaps and shampoo.

HUL-UNIQUELY POSITIONED TO CREATE VALUE

Our strategy

Competitive strengths

Innovation and R&D capabilities to straddle the pyramid

Versatile distribution network

Strong corporate responsibility and governance

Strong local and talent base

Strategy
Grow ahead of the market by leading market development activities.
Leverage positive impact of growing Indian economy on consumer spending.
Grow a profitable foods and top end business.
Grow the bottom line ahead of the top line.
Strong commitment to sustainable development.

35

Competitive Strengths

Corporate Social Responsibility-Aiding In The Development Of The

Country

36

Shakti
Three shakti initiatives

Shakti entrepreneur; currently~44000 women cover

1,25000

villages.

Shakti vani: one-to-many communication for category growth

ishakti: customized interaction with remote consumers.

Impact of community

business and social impact can go together.

partnerships with diverse stakeholders.

HINDUSTAN UNILEVER LIMITED

COMPARATIVE BUSINESS ANALYSIS
Hindustan Unilever Limited Formerly known as Hindustan Lever Limited. The Group's
principal activities are to manufacture and market consumer products. The Group operates
through seven segments: Soaps and Detergents, Personal Products, Exports, Beverages,
Foods, Ice Creams and Other. The products include home and personal care products,
37

foods and beverages, industrial and agricultural products. Home and personal care
products consists of personal and fabric wash, household, oral care, skin and hair care,
deodorants, perfumery, colour cosmetics and baby care. Foods and beverages includes
tea, coffee, cooking fats and oils, bakery fats, ice creams, tomato products, fruit and
vegetable products, rice, salt, atta and rawa, marine products and mushrooms. Industrial
and agricultural products includes specialty chemicals, bulk chemicals, fertilisers, animal
feeds, seeds, plant growth nutrients, processed-tri-glycerides and agri commodities, yeast,
leather, footwear and carpets, thermometers and plantations.
This analysis compares Hindustan Unilever Limited with three other companies in closely
related industry sectors.
The company focuses on efficient delivery to consumers with an improved supply chain,
brand building initiatives and innovation, which has helped the company to sustain its
leadership position in the overall FMCG category in India.
Its brands are spread across 20 consumer product categories. Hindustan Unilever markets
consumer goods throughout India. The company faces competition from international, local
and regional players.

RURAL- THE BIG INDIAN ROMANCE

Rural population larger than europe(800 million)
Low growth in agriculture;however rural income are growing

faster with 70%

population here,income growth is crucial.

Structural changes in the economy which are affecting this are:
Disintermediation in the agricultural market price discovery mechanism
has benefited farmers.
Government grants and subsidies.employment grants-Rs 40000cr

38

Did Hindustan Unilever Get Its Rural Pitch Right?

A new book from Wharton School Publishing is critical of Hindustan Unilevers advertising
strategy in India.
HUL missed an opportunity for increased marketing productivity when they repositioned,
retargeted, and relaunched Lifebuoy, write Leonard M. Lodish, Howard L. Morgan and
Shellye Archambeau, the authors of Marketing that Works. Though the company was
extremely innovative the way it handled the rural communications plan was very traditional,
they add.
The company basically worked with one agency, Ogilvy and Mather (O&M), and screened
some options to roll out one option that everyone was happy with, reads an observation in
a chapter titled entrepreneurial advertising that works.
A better strategy, according to the authors, would have been to develop a number of
different communications executions using different creative sources and then testing them
as part of the early rollout.
Advertising strategy came for mention when the company reported the second quarter
results, a few days ago. Mr D. Sundaram, Director (Finance & IT), HUL, said: We have
been phasing our advertising spends depending on the launches and relaunches of
brands. The advertising spends have not been linear for the company, he added. The
companys advertising and promotional spends during the quarter fell to Rs 336 crore, from
the earlier Rs 345 crore.
39

Lifebuoy is one of Unilevers oldest brands with more than a hundred-year history.
Lifebuoy has become more than just a red bar of soap today the brand provides hygiene
and health solutions for families, says the site, in a paragraph on innovation.
Differentiating soap products on the platform of health takes advantage of an opening in
the competitive landscape for soap, reads a quote in the book from C.K. Prahalads The
Fortune at the Bottom of the Pyramid .
HUL, through its innovative communication campaigns, has been able to link the use of
soap to a promise of health as a means of creating behavioural change, and thus has
increased sales of its low-cost, mass-market soap, Prahalad notes.
The O&M strategy, as explained by Mr Lodish et al, targeted 10,000 villages in nine states
where HUL stood to gain the most market share They spent a lot of effort in designing
low cost ways of communicating with their rural target.
The authors are of the view that government workers who have been interacting with
villagers might have come up with some excellent ideas; or the villagers themselves might
also be able to generate very effective communications vehicles.
So, why didnt HUL try alternative campaigns when rolling out its initiative? Probably the
biggest reason is that they always did their communications the same way even for
innovative programs, wonder the authors. As a big company, many times it is difficult to
change the procedures without creating significant political problems.
The HUL example, which is one of the many discussed in the book, concludes by stating
that globally very progressive and innovative firms can also benefit from being more
entrepreneurial and less traditional in how they manage their advertising and
communication.

40

JOINT VENTURE

Hindustan Unilever Sets Up Joint Venture With Smollan Holdings

Hindustan Unilever Limited (HUL) has decided to set up a Joint Venture (JV) with Smollan
Holdings of South Africa and the JV will be operational from January 1, 2008. The strategic
tie-up aims to build long term capabilities and bring in-store execution focus in servicing
the Companys Modern Trade customers.
The new company has been named as Hindustan Unilever Field Services Private Limited
(HUFS) and will work exclusively on behalf of HUL in Modern Trade channel only. The
operations will begin with the existing Modern Trade in-store execution team of HUL moving
into HUFS.
Smollan Holdings is one of the leading in-store execution and field services companies
internationally. It has leading edge capabilities in servicing Modern Trade focused on shelf
filling, logistics for merchandising materials and in store execution.
Modern Trade in India is growing and evolving very rapidly and our strategy for winning in
this growing retail market is to win at point-of-purchase with our shoppers & by delivering
best-in-class service to our Modern Trade customers. This JV will bring in world class
execution excellence in the market and build the right capabilities to deliver the companys
marketing strategy in Modern Trade.
Other Acquisition
Hindustan Unilever has acquired several Indian FMCG companies so far. This includes:
41

Tata Oil Mills Company

Brooke Bond

Lipton India

Modern Foods

It acquired Kissan brand from UB group; Dollops ice cream brand from Cadbury India;
Lakme cosmetics brands from Tata. It has also launched Pureit, a home water purifier
which supplies drinking water without boiling/need of electricity.
Hindustan Unilever Network is the direct selling channel of the company. It has about
350,000 consultants, all independent entrepreneurs, trained and guided by HLN's expert
managers and trainers.

NEW INITIATIVE
Bringing High-End Dove To India
Baillie is fighting back. Over the past six months, Hindustan Unilever launched a high-end
range of Ponds skin care and Dove hair care products from Unilevers international
portfolio. These premium brands retail not in neighborhood small stores but in
supermarkets and hypermarkets, where Indian customers love to touch and feel products.
Hindustan Unilever is also milking one of its top brandsFair & Lovely, a hot-selling
fairness cream, which promises a lighter skin, tone for many of Indias complexionconscious consumers. The advertising campaign, which suggests that regular use of the
cream helps women gain confidence and makes them eligible for marriage, has made the
brand a winner. That has spawned a host of competitive fairness creams, soaps, and
sunblock lotions. But Hindustan Unilevers brand is still tops.
Baillie is also getting aggressive on foods, focusing on the Knorr brand of soups and curry
mixesideal for the Indian market. Analysts believe the companys current strategy of
concentrating on premium products and marketing them in the large retail stores is a
winning one. Sumeet Budhraja, consumer analyst at Mumbai brokerage First Global
Securities, says that Hindustan Unilever could have addressed a lot more categories, but
they are more focused and regaining their aggressiveness. He points to the demand for
42

safe drinking water in India, which Hindustan Unilever exploited with the launch of water
purifier Pureit in 2005, at one-third the price of established Indian brands such as Aqua
guard.
These efforts have delivered some promising results, and Baillie is pleased with the modest
turnaround. In the quarter ended June, 2007, the companys sales grew 13%, with net profit
up 29.6%. Reason enough to keep patrolling those store aisles.

SERVICE TO SOCIETY
HUL believes that an organisation's worth is also in the service it renders to the community.
HUL is focusing on health & hygiene education, women empowerment, and water
management. It is also involved in education and rehabilitation of special or underprivileged
children, care for the destitute and HIV-positive, and rural development. HUL has also
responded in case of national calamities / adversities and contributes through various
welfare measures, most recent being the village built by HUL in earthquake affected
Gujarat, and relief & rehabilitation after the Tsunami caused devastation in South India.
In 2001, the company embarked on an ambitious programme, Shakti. Through Shakti, HUL
is creating micro-enterprise opportunities for rural women, thereby improving their livelihood
and the standard of living in rural communities. Shakti also includes health and hygiene
education through the Shakti Vani Programme, and creating access to relevant information
through the iShakti community portal. The program now covers 15 states in India and has
over 31,000 women entrepreneurs in its fold, reaching out to 100,000 villages and directly
reaching to 150 million rural consumers. By the end of 2010, Shakti aims to have 100,000
Shakti entrepreneurs covering 500,000 villages, touching the lives of

over

600

million people.
HUL is also running a rural health programme Lifebuoy Swasthya Chetana. The
programme endeavours to induce adoption of hygienic practices among rural Indians and
aims to bring down the incidence of diarrhoea. It has already touched 70 million people in
approximately 15000 villages of 8 states. The vision is to make a billion Indians feel safe
and

secure.

If Hindustan Unilever straddles the Indian corporate world, it is because of being singleminded in identifying itself with Indian aspirations and needs in every walk of life.

43

PERFORMANCE REVIEW

Leadership Across Diverse Fmcg Category

44

Financial Overview -2009

45

*FIGURES BASED ON FY 2009-10 AUDITED RESULTS

Monthly turnover of the whole seller

46

Analysis :-

shows that most of the business is generated from the whole seller whose monthly
turnover is less than 5 lacs.

47

Major selling category

Analysis :-shows that the major selling category of in the market is Tobacco and the
second seat is occupied by Biscuits after that there are many categories but tobacco
occupies the major market share that is 40%.

48

The brands in which the whole sellers deal in confectionary

ANALYSIS:-

as per the figure and analysis parle leads the market , with in 3 years of time itc
managed to capture 10% of the market

49

Analysis :it is clear that the demand of sun feast glucose biscuit is more in the market which
means that glucose biscuit is the best seller in the sun feast family then is cookies,
cream, coconut

50

ANALYSIS:Shows that consumer scheme are preferred in the market by the whole sellers due to
higher demand of that product.

51

SERVICE SATISFACTION LEVEL

300
250
200
150
100
50
0

Series1

HIGHLY
SATISFIED

SATISFIED

LESS
SATISFIED

NOT
SATISFIED

300

195

170

85

ANALYSIS:shows that percentage of highly satisfied retailers was highest

52

QUALITY SATISFACTION

375

400
350
300

263

250
200
150

90

100
50
0

22
POOR

GOOD

BETTER

EXCELLENT

ANALYSIS-:
shows that quality of Unilever products were found excellent

53

SWOT ANALYSIS
Strength

Best quality of material used.

Has complete variety.
Has strong brand awareness.
Has a very strong distribution network.

Weakness

I think some product is no good for health.

Opportunity

A variety of new products could be added to touch the raw market.

Rural market can be covered very easily.

Threats

As the company is new in the industry it faces competition by the older player
who offers extra discount to the market.
Faces competition from the local player.
Increasing cost due to inflation.

54

CONCLUSION
Unilever holds second position in the branded FMCG segment in Jaipur.
TAJA TEA is the best seller in TEA segment of Unilever products.
Consumer schemes are more preferred in the market then retailer schemes.
Being fresher in the confectionary market Unilever managed to capture around
10 % of market share in the branded confectionary.
clairs is the best seller in Unilever confectionary business.
Most of the retailers and whole sellers were satisfied by the companys
services.
Quality of Unilever Food products are highly accepted in the market.
Unilever has a very strong distribution channel.
This company project has demonstrated HINDUSTAN UNILEVERS MARKETING
STRATEGIES AND POLICIES that has proved to be extensive through, and of great
benefit to the company in furthering its competitive advantage.
In this project it possible to see the success of Hindustan Unilevers in its indorse its
strong potential to continue to do well.

55

56

RECOMMENDATIONS & SUGGESTION

In reference to my research I came to find out that merchandising helps in
buying decision. Recommendations on the basis of customer are:
1. Different Schemes should be introduced by which their sale will increase.
2. Some Gifts should be given to the retailers on giving the large orders so as to
motivate
3. The replacement of the defective products should be done effectively on the time.
4. They regularly check the stock of retailers.
5. If the company want to increase the sales in off season should increase the more
and more schemes in comparison to other products like TAJA TEA & SOAP
SECTION.
6. There should be a get together and General Meeting between all the company
employees and retailers every Quarter.

57

QUESTION NAIRE
1. Do you use FMCG products?
Yes

No

2. Which brand of FMCG products do you use?

Hindustan Unilever
P&G
Nivea
Others

3. Where do you buy FMCG products from?

Super stores
Retail Stores
Others
4. Are you aware of any campaign of the above brands?
Yes

No

5. Which Hindustan Unilevers product do you usually prefer or use?

Bathing soaps

Skin care

Foods

Deodorants

others

6. Do you think Hindustan Unilevers product is easily available in market ?

Yes

No

7. Describe Hindustan Unilever in one word?

58

8. Your comments on Hindustan Unilevers product?

_______________________________________________

59

BIBLIOGRAPHY

A L Ries (1996), Focus Harper Collins Publishers Ltd.

David A. Aaker (1991), Managing Brand Equity, The Free Press.

David A. Aaker (1996) Building Strong Brands, The Free Press.

Philip Kotler (Eighth Edition) Marketing Management, Prentice Hall of India

Ltd.

The Economic Times Brand Equity

Market survey and questionnaires

www.unilever.com

60