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PROJECT REPORT SUBMITTED TO: MS. Meghnaa Sharma Accman Institute of Management Greater noida, knowledge park-3 U.P
MOHD.ARISH UPMA JOSHI KAPIL
TABLE OF CONTENT
Sl.no Content 1. Executive summary 2. 3. 4. Introduction Objectives and Methodology Findings Product Line SWOT Analysis Competitors Analysis Performance Analysis Future Opportunities Future Projects of HUL Conclusion Bibliography
Page no. 3 4-5 6
7 8 9-12 13-15 15-18 19 20 21
Margarine Unie. So. For 70 years. Surf. Both Unilever and HUL have established themselves well in the Fast Moving Consumer Goods (FMCG) category. HUL is also known for its strong distribution network in India. In India. Ponds. and the British soap-maker. the company offers many households brands like. Pepsodent. The profit & sales growth is analysed. In order to further strengthen its distribution in the rural areas and to empower the local women. 3 . Lever Brothers. Then we have done SWOT analysis to know the threat & opportunities of HUL in present market. Unilever was a result of the merger between the Dutch margarine company. Some of its efforts were also rewarded when four of HUL brands found place in the ‘Top 10 brands’ list for the year 2008 published in The Economic Times. Unilever was the undisputed market leader but now faces tough competition from Proctor & Gamble and Colgate-Palmolive. To analysis the past performance & the future demand of HUL. the future for the FMCG Companies is bright. Lipton. Then the future opportunities for FMCG products are taken into consideration by analyzing the increased percapita income & increased disposable income to forecast the future demand of HUL. Dove. Then performance analysis is made by taking 10 year financial data from 19982007. The idea behind this project was to create women entrepreneurs and provide them with micro-credit and training in enterprise management. Rexona. which would enable them to create self-help groups and become direct-to-home distributors of HUL products.We have done competitor’s analysis in which the market share of top FMCG companies are analayised & the market share of HUL’S different categories product are analayised with comparison to its competitors. way back in 1930.000 villages in 15 states and is helping many underprivileged women earn their livelihood.Lux. FMCG products we have considered following points: We have a listed the different FMCG product lines of HUL. Vaseline etc. As the per capita income of India increasing along with the Indian population. Today Shakti is present across 80. Sunsilk. HUL launched a project Shakti in 2000 in a district in Andhra Pradesh.EXECUTIVE SUMMARY Hindustan Unilever Limited is the Indian arm of the Anglo-Dutch company –Unilever.Lifebuoy.
is INDIAs largest consumer products company and was formed in 1933 as Lever Brothers India Limited.HUL has produced many business leaders for corporate India. Lipton tea. It is currently headquartered in Mumbai. Lifebuoy. Annapurna salt and atta. Pureit Water Purifier. It is referred to as a ‘CEO Factory' in the Indian press for the same reasons. Some of its brands include Kwality Wall's ice cream. HUL is also a global marketing arm for select licensed Unilever brands and also works on building categories with core country advantage such as 4 . Bru Coffee. and Surf. the non-executive chairman of the board. formerly Hindustan Lever Limited. Kissan squashes and jams. Clinic All Clear. Hamam.000 employees are headed by Harish Manwani. Brooke Bond tea. Vaseline lotions. The company was renamed in late June 2007 as "Hindustan Unilever Limited". Pepsodent and Close Up toothpaste and brushes. Moti soaps. Liril. It has been recognized by the Government of India as a Golden SuperStarTradingHouse.Modern Bread and Axe deospray. Clinic Plus. Breeze. Rin and Wheel laundry detergents.INTRODUCTION Hindustan Unilever Limited (abbreviated to HUL). HUL is the market leader in Indian products such as tea. It’s leadership building potential was recognized when it was ranked 4th in the Hewiit Global Leadership Survey 2007 with only GE. India and its 41. P&G and Nokia ranking ahead of HUL in the ability to produce leaders with such regularity Today. soaps. Lakme beauty products. The Anglo-Dutch company Unilever owns a majority stake in Hindustan Unilever Limited. Pond's talcs and creams.Rexona. as its products have become daily household name in India. Ala bleach and Domex disinfectant. Rexona. Lux. Over time HUL has developed into a viable & competitive sourcing base for Unilever world wide in Home and Personal Care & Foods & Beverages category of products. HUL is one of India’s largest exporters of branded Fast Moving Consumer Goods. Vim dish wash. Sunsilk and Dove shampoos. Fair & Lovely creams. detergents.
brandedbasmatirice. Australia. HUL’s key focus in the exports business is on two broad categories. countries in Europe. It has a dedicated organization structure to support this endeavor and this has helped in growth of these businesses in particular. at present. HUL Exports offers high level of service with flexibility and responsiveness thorough out the supply chain. reliability and speed of customer service. Middle East. Intrinsic cost competitiveness in the end to end Supply chain with appropriate technology and competitive capital investment operations while delivering best in class quality enables HUL to position itself as a key sourcing hub for Unilever and also become a preferred partner for Global customers in categories we operate. HUL enjoys international recognition within Unilever and outside for its quality. HUL's Exports geography comprises. and North America etc. HUL’s products touches two out of three Indian everyday Reach 80% Households Direct Coverage of 1mln outlets 2000 Suppliers and Associates 71 Manufacturing locations 15000 Employees 1100 managers Shelf availability 84% outlets in India 5 . Africa. has competitive advantage – Branded Rice. Marine Products and Castor and its Derivatives. It also focuses on becoming a preferred supplier to both non-Unilever and Unilever clients in three categories in which India. as a country. Asia. It is a sourcing base for Unilever brands in Home & Personal Care (HPC) and Food and Beverages (F&B) for supplies to other Unilever companies.
6 . newspapers. Then by observing these graphs we have made our conclusions and recommendations. company research papers. etc. Secondary data’s are pre published and research data’s collected from different websites.OBJECTIVES AND METHODOLOGY OBJECTIVE Primary objective To find the past sale growth and demand analysis Secondary Objective Market structure analysis SWOT analysis Competitor analysis Performance evaluation Methodology In this project we have followed descriptive method of study. conceptual and organizational background analysis. These documents and data’s are very useful for the theoretical. journals. Detailed analysis of data’s is made by plotting different graphs and tables which can be easily understandable. journals. Research instrument Here project analysis is made by collecting secondary data from different websites.
PRODUCT LINE A) HOME AND PERSONAL CARE: 1) Personal wash Lux Lifebuoy Liril Hamam 2) Laundry Surf Excel Rin Wheel 4) Hair care Sunsilk naturals Clinic 6) Deodorants Axe Rexona Breeze Dove Pears Rexona 3) Skin Care Fair and lovely Pond’s Aviance 5) Oral care Pepsodent Close up 7) Colour Cosmetics Lakme 8) Ayurvedic Personal and health care: Ayush B) FOODS 1) Tea Brooke Bond Lipton 2) Coffee Brooke Bond Bru 3) Foods 4) Ice cream Kissan Kwality walls Knor Annapurna C) WATER PURIFIER Pureit 7 .
Nirma OPPORTUNITIES Huge Market Increasing per capital income Increasing consumption pattern Potential for making more impact of brand image. 8 .SWOT ANALYSIS STRENGTH Variety of products Distribution Network Brand image Quality Management Innovation and R&D strength THREATS From High Class Competitor Proctor & Gamble Pantene Dabur Babool Dabourlal Dent Manjan Reckitt Benckiser Dettol Palmolive Colgate.
ITC (Indian Tobacco Company) Nestlé India GCMMF (AMUL) Dabur India Asian Paints (India) Cadbury India Britannia Industries Procter & Gamble Hygiene and Health Care Marico Industries 9 . 9. 2. 3. in water purifiers WEAKNESS Not able to compete with local competitor in the rural market Not focus on upper class population Pricing policy is not good COMPETITORS ANALYSIS According to the market survey done by BUSINESS TODAY the top 10 companies of FMCG sector are given below.g. 1. 8. 6. 5. Coming in technology e. Hindustan Unilever Ltd. 10. 7. 4.
Nestle India Ltd.In different categories of FMCG products like shampoo. ETC…. skincare . HUL is enjoying the leader position in the market and is having highest market shares which are followed by the market challengers like Dabur India Ltd. and ITC LTD. etc 10 . coffee. jams..THE COMPARATIVE DATA OF % MARKET SHARE OF HUL AND ITS COMPETITOR IN QUARTER ENDED JUN’08 80 70 60 50 40 30 20 10 0 HUL(MARKET SHARE %) COMPETITOR (MARKET SHARE %) (Above graph showing %age Market share of HUL and its competitor in different categories of FMCG products) As mentioned in the above graph. deo.
60 50 40 30 30 20 10 0 TOOTH PASTE HUL(Market share%) COMPETITOR(Market share%) KETCHUP 24.In some category these market challengers are giving high level competition in different product lines such as ketchup and toothpaste (As shown in the graph below).5 27.6 47.9 (Above graph showing the two category of products in which HUL percentage market share is less than its competitor in Quarter ended JUN’08) So we can see that in overall FMCG business HUL is distantly ahead of rest of the companies as far as market share of different products are concerned. 11 .
We can see that HUL is enjoying the position of market leader and is followed by ITC as close second in the market share of FMCG products. 12 .MARKET SHARE OF FMCG COMPANIES IN INDIA OTHERS 19% HUL 34% DABUR 4% BRITANNIA 6% NESTLE 8% ITC 29% In the above pie chart we see the position of various FMCG companies doing business in India.
Lakhs) 13 .PERFORMANCE ANALYSIS Hindustan Unilever Ltd is one of the leading FMCG company in India which having the following past financial records we have taken for the analysis as follows: Table showing past 10 years financial data Sales growth of last 10 years 1500000 1400000 1300000 1200000 1100000 1000000 900000 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 sales(Rs.
but in the year 2002 we see that the sales fell but there was actually rise in the profit of the company . Reason for the steep fall in the profit of the company in the year 2004: The FMCG market in Urban India was attaining the saturation level and so companies had to expand its market in rural India. after plotting two graph one of sales & other of profit as shown in here we can see that both profit and sales of the company rose from the year 1998 till 2001.PROFIT OF LAST 10 YEAR 200000 180000 160000 140000 120000 100000 80000 60000 40000 20000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 PROFIT(Rs.Lakhs) DATA ANALYSIS: We have the sales and profit figures of HUL from the year 1998 to 2007 in the 10year past data from Yr1998-2007. This resulted in the downfall in the profit of HUL. In the year 2004 we see that there was a steep fall in the profit of the company and from the year 2005 onwards there was a slow but steady rise in the profit of the company. There was very aggressive advertising campaign by ITC in that year to set itself in the market this affected HUL who was enjoying the position of market leader and resulted in the fall in the profit of the company. 14 . but a rapid rise in the sales of the company in the given years.
In the following graph we can see the percentage growth in FMCG sales of HUL from March quarter ’07 to March quarter ’08. The opportunities are as follows: Increasing per capita income is driving FMCG growth in India India’s consuming class is growing rapidly Changing consumption pattern: Per capita income of Indian customer is increasing and FMCG products are relatively elastic in nature hence the expected sale should increase. FMCG Sales volume growth in last 5 quarter in 07-08 25 20 15 10 5 0 MQ'07 JQ'07 SQ'07 DQ'07 MQ'08 FMCG Sales volume growth in last 5 quarter in 07-08 (Graph showing the FMCG trend through last quarters) FUTURE OPPORTUNITIES India is a fast developing country with a huge population whose per capita income is growing rapidly and there is huge opportunity for FMCG companies. 15 .
the graphs showing the increasing percapita income. percapita disposable income and population of India respectively are as follows: Percapita income(Rs) 1200 1000 800 600 400 200 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 Percapita income(Rs) (Above graph showing percapita income of INDIANS through out Yr2000-2008) As shown in the above graph the percapita income of an INDIAN increased throughout years. and if this trend will continue in future the people can purchase more FMCG products. of INDIA) we can expect increase future demand of FMCG products.By the following three graphs(data collected from a research made by govt. 16 .
5 25 23.5 % Of past population rise and future expetation 2000 1950 1960 1970 1980 1990 2010 2020 (Above graph shows the past population and expected future population rise.5 30 27.5 35 41. of INDIA)Here by the above graphs we can see that there is huge scope for FMCG products and since HUL is the market leader in India hence it can gain the most out of it. data are collected from the research made by govt. 17 2030 .700 600 500 424 400 300 200 100 0 2002 2003 2004 2005 2006 2007 461 494 505 599 551 Percapita disposible income (Above graphs showing increased percapita disposable income from Yr20022007) % Of past population rise and future expetation 45 40 35 30 25 20 15 10 5 0 17 20 18.
7 15 13.7 13.CATEGORY WISE SALE GROWTH OF FMCG SECTOR OF HUL IN INDIA: CATEGORY %AGE Soaps & Detergents Personal Products Ice Cream Processed Foods Beverages Others 25 22.6 10 5 0 Soaps & personal Ice cream Processed Beverages detergents products foods Others % GROWTH OF DIFFERENT FMCG PRODUCTS OF HUL (Above graph shows the data of MAR’08 Quarter %growth of different products of HUL) 18 .7 13.4 15.7 19.6 19.4 19.4 20 19.3 22.4 13.3 15.
000 villages not reached directly by HUL. C) Awareness: Per capita consumption in Unilever categories is 33% of urban level. scattered settlements and poor infrastructure make distribution difficult. consumption. B) To Communicate: Low literacy hampers effectiveness of print media. Poor media-reach: 500 million Indians lack TV & radio.FUTURE PROJECTS OF HUL: As competition is increasing day by day. 19 . it’s difficult to maintain the leader position & to further strengthen the distribution network HUL made a project called project SHAKTI which will serve the following purpose: A) To Reach: Small. Over 500. C) To Influence: Low category penetration.
CONCLUSION Hindustan Unilever ltd. Though there was some downfall in sales and profit of the company in the beginning of this decade but after that HUL has shown considerable rise in both sales and profit. This will also be helpful not only increasing its market share but also fight competition. This may be considered a revolutionary step since the urban market is reaching its saturation level and there is a huge scope exploring rural market. The future of the company is also looking bright as FMCG market in India is still expanding and so we can safely conclude that HUL will be able to secure its number one position in FMCG product. HUL has placed itself successfully in the position of market leader in FMCG products. Customers in India are also spending more in FMCG as their standard of living is growing. HUL has also started project SHAKTI that has provided it direct reach to rural market. 20 . Is a leading FMCG company in India and from last three consecutive years has shown accelerated growth in FMCG portfolio.
AUTHOR’S NAME Ashish Benerjee H.com www. Ahuja BOOKS Principle of economics Modern Microeconomics Theory and Application Research Methodology C.scribd.L.com Besides it various books are also consulted to prepare project report.in www.co.oppapers.K.BIBLIOGRAPHY In order to make this project we have taken the help of the following websites & books: www.hul.wikipedia.com www.Kothari 21 .
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