IAMR, Ghaziabad

ANALYSIS OF HUL ON 4PS OF MARKETING AND ITS CONSUMER BEHAVIOUR

A PROJECT REPORT SUBMITTED BY ASHISH KUMAR SAINI PGDM III. Sem in partial fulfillment for the award of POST GRADUATE DIPLOMA IN MANAGEMENT Under the guidance of supervision of Miss. Subodh Chaudhary Alam (Faculty of HR) (BDO,HUL) Under the Mr. Shahnawaz

INSTITUTE OF ADVANCED MANAGEMENT AND RESEARCH

PGDM 1

IAMR, Ghaziabad

CERTIFICATE OF COMPLETION

PGDM 2

IAMR, Ghaziabad

BONAFIDE CERTIFIACATE

Certified that this project report ANALYSIS OF HUL ON 4PS OF MARKETING AND ITS CONSUMER BEHAVIOUR is the bona-fide work of ASHISH KUMAR SAINI who carried out the project work under my supervision.

Dr. Kriti Priya Gupta

Miss. Subodh Choudhary

(ACADEMIC CO-ORDINATOR PGDM) (SUPERVISOR) IAMR Ghaziabad

PGDM 3

IAMR, Ghaziabad

DECLARATION

I, Ashish Kumar Saini, hereby declare that the project work entitled ANALYSIS OF PUREIT ON 4 PS OF MARKETING AND CONSEMER BENHAVIOUR is an authenticated work carried out by me at HINDUSTAN UNILIVER LIMITED under the guidance of Miss. Subodh Choudhary for the partial fulfillment of the award of the Diploma of PGDM and this work has not been submitted for similar purpose anywhere else except to IAMR, Ghaziabad, approved by AICTE.

Date:

Place:

(ASHISH KUMAR

SAINI)

PGDM 4

IAMR, Ghaziabad

ACKNOWLEDGEMENT

I take this opportunity to express my gratitude to the Management of HUL at Jaipur for providing me the opportunity to get an exposure of their esteemed unit. I am sincerely thankful to the HR department for coordinating my training and explicitly express my thanks to Mr. Shahnawaz Alam for their continued help and guidance during my stay there. Last but not the least, I express my deep gratitude to my mentor Miss. Subodh Choudhary for sending me to a large integrated water division of Pureit of HUL and giving me a chance to acquire experience of my lifetime. I also express my thanks to parents and all family members and friends who directly or indirectly provided me their moral support.

(Ashi sh Kumar Saini) PGD M III Sem IAMR Ghaziabad PGDM 5

IAMR, Ghaziabad

EXECUTIVE SUMMARY

Hindustan Unilever Limited is the Indian arm of the Anglo-Dutch Company Unilever. Both Unilever and HUL have established themselves well in the Fast Moving Consumer Goods (FMCG) category. In India, the company offers many households brands like, Dove, Lifebuoy, Lipton, Lux, Pepsodent, Ponds, Rexona, Sunsilk, Surf, Vaseline etc. 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 a result of the merger between the Dutch margarine company, Margarine Unie, and the British soap-maker, Lever Brothers, way back in 1930. For 70 years, Unilever was the undisputed market leader but now faces tough competition from Proctor & Gamble and ColgatePalmolive.

HUL is also known for its strong distribution network in India. In order to further strengthen its distribution, HUL launched a Project SAFE WATER ZONE in 2003 in Chennai. The idea behind this project was to protect lives to water borne disease such as typhoid, jaundice and diarrhea. In 2007 water division started national. Now it presents in all states and already protected 15 million lives.

PGDM 6

IAMR, Ghaziabad

TABLE OF CONTENTS

CHAPTER NO.

TITLE

PAGE NO.

CERTIFICATE II
Bonafide certificate III

OF

COMPLETION

STUDENT IV

DECLARATION

ACKNOWLEDGMENT V
Executive VI Table of contents VII-VIII List of figures IX Key words IX Summary

1. Company Profile
1.1Introduction
PGDM 7

1- 2
3

IAMR, Ghaziabad

1.2 History 1.3 Doing well by doing good 1.4 Product line 1.5 Corporate social responsibility 1.6 SWOT analysis of HUL 1.7 A clear direction 1.7.1 Purpose 1.7.1 Mission & Vision

4 5 6-14 15 16-17 18 18 18

2. Introduction to project topic 2.1 Water Purifier- Pureit 2.2 Some basic facts on water problem 2.3 Product analysis Pureit 2.4 Competitors 2.5 How Pureit is better than other water purifier

19-20 21-22 23 24-28

29

30

3. 4 PS of Marketing Strategies

31-35

4. Scope and objective of the study

4.1 Scope of the study 4.2 Objective of the study

36
37 38

5. Research Methodology 5.1 Research design 5.2 Sampling plan 5.3 Assumption of the study
PGDM 8

39 39 40 40

IAMR, Ghaziabad

5.4 Data collection 5.4.1 Primary data 5.4.2 Secondary Data

41-42 41 41

6. SWOT Analysis 6.1 Data analysis and Interpretation

43-44 45-57

Findings and Recommendations Limitations Conclusion Annexure Bibliography

58 59 60 61-64 65

PGDM 9

IAMR, Ghaziabad

LIST OF FIGURES

Clustered column chart 3-D clustered column Clustered cylinder chart 3-D Clustered cylinder chart Pie chart Exploded pie chart

KEY WORDS

Hul FMCG
BDO FY

: Hindustan Uniliver Limited : Fast moving consumer goods

: Business Development Officer : Financial Year

PGDM 10

IAMR, Ghaziabad

COMPANY PROFILE & INTRODUCTION

PGDM 11

IAMR, Ghaziabad

Company Profile

Type Industry Founded Headquarter

:

Public company BSE:HUL Fast Moving Consumer Goods (FMCG)

:
:

1933 Mumbai, India

Key people

Harish Manwani (Chairman), Nitin Paranjpe (CEO and Managing Director) Home & Personal Care, Foods, Water Purifier Rs 20,869.57 crore (US$ 4.45 billion) (20082009)

: :
:

Products Revenue Employees Parent Website

:
: :

Over 65,000 direct & indirect employees Unilever Plc www.HUL.co.in

PGDM 12

IAMR, Ghaziabad

Introduction to HUL
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. The companys Turnover is Rs. 20, 239 crores (for the 15 month period January 1, 2008 to March 31, 2010). HUL is a subsidiary of Unilever, one of the worlds leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of 40.5 billion in 2008. Unilever has about 52% shareholding in HUL Hindustan Unilever was recently rated amongst the top four companies globally in the list of Global Top Companies for Leaders by a study sponsored by Hewitt Associates, in partnership with Fortune magazine and the RBL Group. The company was ranked number one in the Asia-Pacific region and in India. The mission that inspires HUL's more than 15,000 employees, including over 1,400 managers, is to add vitality to life". The company meets everyday needs for nutrition, hygiene, and personal care, with brands that help people feel good, look good and get more out of life. It is a mission HUL shares with its parent company, Unilever, which holds about 52 % of the equity.

PGDM 13

IAMR, Ghaziabad

History
HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and has employee strength of over 15,000 employees and contributes for indirect employment of over 52,000 people. The company was renamed in June 2007 to Hindustan Unilever Limited. The Anglo-Dutch company Unilever owns a majority stake (52%) in Hindustan Unilever Limited. HUL was one of the eight Indian companies to be featured on the Forbes list of Worlds Most Reputed companies in 2007

Heritage
HULs heritage dates back to 1888, when the first Unilever product, Sunlight, was introduced in India. Local manufacturing began in the 1930s with the establishment of subsidiary companies. They merged in 1956 to form Hindustan Lever Limited (The company was renamed Hindustan Unilever Limited on June 25, 2007). The company created history when it offered equity to Indian shareholders, becoming the first foreign subsidiary company to do so. Today, the company has more than three lakh resident shareholders. HULs brands -- like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Sun silk, Clinic, Close-up, Pepsodent, Lakme, Brooke Bond, Kissan, Knorr, Annapurna, KwalityWalls - 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 in over 35 factories, several of them in backward areas of the country. The operations involve over 2,000 suppliers and associates. HUL's distribution network covers 6.3 million retail outlets including direct reach to over 1 million.

Doing Well by Doing Good

HUL believes that an organizations worth is also in the service it renders to the community.

PGDM 14

IAMR, Ghaziabad

HUL focuses on hygiene, nutrition, enhancement of livelihoods, reduction of greenhouse gases and water footprint. 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 relief and rehabilitation of the people affected by the Tsunami disaster, in India. HULs Project Shakti is a rural initiative that targets small villages populated by less than 5000 individuals. 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 provides health and hygiene education through the Shakti Vani programme.The program now covers 15 states in India and has over 45,000 women entrepreneurs in its fold, reaching out to 100,000 villages and directly reaching to over three million rural consumers. HUL also runs 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 120 million people in approximately 50, 676 villages across India. If Hindustan Unilever straddles the Indian corporate world, it is because of being single-minded in identifying itself with Indian aspirations and needs in every walk of life. Unilever products touch the lives of over 2 billion people every day whether that's through feeling great because they've got shiny hair and a brilliant smile, keeping their homes fresh and clean, or by enjoying a great cup of tea, satisfying meal or healthy snack.

Brands for life (Product Line)

PGDM 15

IAMR, Ghaziabad

Hindustan Unilever Limited has been the pioneer in the field of Food brand, Home care brands, personal care brands, water purification systems, Nutrition, Health, Hygiene & beauty products The following are the basic products of Hindustan Unilever Ltd., which has always promised to provide safe and healthy living.

Food Brands.

Home Care Brands.

Personal Care Brands. Water Purification System.

Food brands
PGDM 16

IAMR, Ghaziabad

HUL is one of Indias leading food companies. Our passion for understanding what people want and need from their food - and what they love about it - makes our brands a popular choice.

Brooke Bond 3 Roses

Playful banter, a little mischief, serious conversation theres no time for young couples like the time spent sharing a cup of 3 Roses. To keep a relationship going, every young couple needs a little time to talk

Annapurna
Partnering with the mom in nurturing her dreams, Annapurna Atta is aimed at helping her provide wholesome tasty nutrition to her family. Annapurna Atta is aimed at helping the homemaker provide wholesome, tasty nutrition to her family.

Red Label
Indias favorite cup of tea, the great taste of Red Label brings people closer together and strengthens relationships. The brew that bonds.

Brooke Bond Taaza

Brooke Bond Taaza lifts me and unshackles my mind, allowing me to see and realize possibilities. The great refreshment of Taaza inspires women to have an identity beyond their homes and to refresh their lives.

Taj - Mahal
PGDM 17

IAMR, Ghaziabad

Brooke Bond Taj Mahal is an exclusive selection of teas for the discerning consumer. A taste for the finer things in life. Taj Mahal is not just a cup of tea, it is a sensory experience

Bru
Ek cup Bru aur mood ban jae Some moments in life are special and close to the heart. Bru makes these moments with loved ones even more magicalIts Indias largest coffee brand that offers a range of products in Instant coffee, Conventional coffee and premixes....Its rich aroma and unique blend makes every moment come alive

Knorr.
Knorr helps families make meal times special, nutritious, tasty and healthy

Kwality Walls
A good honest scoop of daily pleasure. . Kwality Walls, the brand with a big heart, offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians kids, teens and adults. We do so with our very popular brands - Cornetto, Feast, Paddle Pop, Selection & our award winning parlour concept, Swirls.

Home care brands

PGDM 18

IAMR, Ghaziabad

HUL has a diverse portfolio of brands offering home care solutions for millions of consumers across India.

Active Wheel
Active Wheel de "Mehnat se Aazadi" Freedom from painful & tiring laundry Active Wheel enables consumers to perform laundry chores, giving Great Clean within less effort.

Cif
Cif- the best cleaner to let you shine. Cif- The Worlds leading cream cleaner which gives you the power to deal with the toughest dirt is now in India.

Comfort
The worlds largest fabric conditioner brand. For most homemakers, ensuring their family's well-being is of utmost importance. Every task, whether its preparing a meal or washing the clothes, is an expression of her love and affection for the family.

Domex
The sheer power of Domex bleach gives you the confidence you need, eradicating all known germs. The sheer power of Domex bleach gives you the confidence you need, eradicating all known germs. With Domex, you can be absolutely certain that the job is done.

Rin
Rin provides best in class whiteness which is demonstrable.
PGDM 19

IAMR, Ghaziabad

Clothes talk for us. Rin plays an integral part in enabling us to look good by providing demonstrably superior whites, giving us the confidence to realize our ambitions.

Sunlight
Sunlight is a color care brand. A dash of pink, a splash of yellow, a hint of purple and a bit of orange. Colours can liven up any wardrobe and can make you look and feel precious and if theres one detergent brand thats committed to colour care, its Sunlight

Surf Excel
Giving your kids the freedom to get dirty and experience life, safe in the knowledge that Surf Excel will remove those stains. When children go out to play and get dirty, they don't just collect stains. They experience life, make friends, share with each other and learn from each other. This helps them get stronger and get ready for the world outside

Vim
Created in 1885, the Vim brand is still innovating and using the magic of natural ingredients to create unbeatable results over a hundred years later.

Personal care brands

PGDM 20

IAMR, Ghaziabad

Our personal care brands, including Axe, Dove, Lux, Pond's, Rexona and Sunsilk, are recognized and love by consumers across India. They help consumers to look good and feel good and in turn get more out of life. Aviance Aviance enables women actualize their unique potential through expert customized beauty solutions.
The Aviance promise Aviance believes that no two women are alike. A truly beautiful woman is constantly searching for ways to express and celebrate her own individuality. Aviance was created to empower this woman. Encourage her. And help her become all she can be.

Axe
Axe with Best Quality Fragrance. AXE is a cool, iconic, youth brand available in more than 60 countries. In India, Axe, which has been launched in 1999, is the largest selling Male Deodorant.. Breeze Breeze, with the goodness of glycerin gives soft, fragrant and smooth skin. Breeze makes use of a new revolutionary global technology which enhances the impact of world class perfumes in a much larger way, apart from bringing out the goodness of glycerine.

Clear
New Clear with Essential Oils, guarantees Zero dandruff and leaves your hair feeling fabulous.
PGDM 21

IAMR, Ghaziabad

New Clear. Zero dandruff, Just fabulous hair

Clinic Plus
Clinic Plus is Indias largest selling shampoo and has won the trust the millions of families across India. Clinic Plus understands that healthy hair is an important asset which helps your family progress in life and empowers you.

Closeup
Freshness that brings you Closer. Closeup is synonymous with Freshness that gives you the confidence to be close to someone.

Dove
Dove stands for real beauty. All around the world, Dove is making real women feel more beautiful! Since 1993, Indian women have relied on Dove for beautiful skin. Dove is known to be a keeper of promises and has given real products to women world over.

Fair & Lovely

More than 30 years ago, a unique brand was born. Wrapped within a humble lavender tube, it went on to become the Worlds No.1 Fairness cream. Hamam Holistic skin care experiences perfected over the ages to deliver healthy, beautiful skin

PGDM 22

IAMR, Ghaziabad

Hamam brings alive the wisdom behind time-less skincare rituals in convenient and contemporary formats

Lakme
Lakme is an ally to the Indian Woman and inspires her to express her unique beauty and sensuality. Thus, enabling her to realize the potency of her beauty.

Lakme is the Indian womans Beauty Sutra inspiring expression of her unique beauty and sensuality

Lifebuoy
Lifebuoy is available in multiple variants in soaps and specialist formats such as liquid handwash, catering to the entire family. Lifebuoy, an undisputed market leader for 112 years, has a compelling vision to make 5 billion people across the world, feel safe and secure by meeting their personal care hygiene & health needs

Liril
Awaken, and enliven your senses with a Liril bath. Over time, Liril has come to be synonymous with the freshness of limes, active energy and freedom of expression by its symbolic display of the uninhibited female form.

Lux
Lux believes in passion for beauty. It continues to be a favorite with generations of users for a sensuous experience of luxury.

PGDM 23

IAMR, Ghaziabad

Lux stands for the promise of beauty and glamour as one of India's most trusted personal care brands. Pears Pears the purest and most gentle way to skincare! Pears launched in India in 1902, exuberates a long heritage of purity. It is so pure that you can actually see through it! Pepsodent Pepsodent India is committed to improve the overall Oral health of Indians. Pepsodent is a 15 year old brand that offers various oral care solutions to specific need based solutions. Ponds Get the expert to look after your skin Ponds, has been listening to womens needs and desires for 150 years and this has enabled us to deliver new products customised to their needs. Ponds accompanies them on their journey to enhance the beauty of their skin. Rexona Rexona gives you 24 hr protection from sweat and body odour and therefore the confidence to handle whatever the day has in store.

Corporate Social Responsibility

HULs corporate social responsibility strategy seeks to address HUL's most significant sustainability impacts of hygiene, nutrition, enhancement of livelihoods, reduction of greenhouse gases and water footprint by integrating these objectives
PGDM 24

IAMR, Ghaziabad

into our brands , our people and our processes. Provided income-generating opportunities to 45,000 Shakti entrepreneurs in rural areas Across 15 states in 100,000 villages through Project Shakti Lifebuoy Swasthya Chetna has touched 12crore people in more than 50676 villages Across India since 2002 Pureit is available in more than 1500 towns nationally and already covers over 3 million Households across India. Exceeded the target of reducing CO2emissions from manufacturing operations by 25% on a base of 2004 Twenty Eight of our manufacturing sites are zero water discharge sites.

PGDM 25

IAMR, Ghaziabad

SWOT Analysis

PGDM 26

IAMR, Ghaziabad STRENGTH

HUL enjoys a formidable distribution network covering over 3400 distributors and 16 million outlets. The new sales organization named 'One HUL' brings "Household and Personal Care" and foods distribution networks together, thereby aligning all the units towards the common goal of achieving success. HUL has been continuously able to grow at a rate more than growth rate for FMCG Sector, thereby reaffirming its future stronghold in Indian market.
Weaknesses

HUL market dominance, originating from its extensive reach and strong brand presence, allowed it to raise the prices even as raw materials were getting cheaper. Hence, though the volumes decreased, the margins grew, and company was able to earn more profits. But higher margins attracted competition in areas of operations. HUL strategy remained focused on creating power brands and earning higher margins. It was not left with any other option but to try cutting down the costs in order to protect volumes, if not increase it.
Opportunities

India is one of the world's largest producers of FMCG goods but its exports are miniscule as compared to production. Though Indian Cos. has been going global, their focus is more towards Asian countries because of the similar preferences. HUL is one of the top companies exporting FMCG goods from India. An expansion of horizons towards more and more countries would help HUL grow its consumer base and henceforth the revenues. Penetration levels for some major categories like skin-cream (22%), shampoo (38%), toothpaste (48%) and processed foods, continue to remain low offerings but great growth opportunities products
Threats

ITC has reduced its dependence on the cigarettes business - Contribution of the core business in revenues has come down from 87% in FY99 to 70% in FY05. Over a period of five years, ITC has extended its presence into areas like foods, retailing, hotels, greetings, agriculture, paper, etc. These are businesses that can give it growth impetus in the long run. With ITC gaining momentum in each of these businesses, it is turning into a consumer monolith, and hence, the greatest threat to HUL's Business.
PGDM 27

IAMR, Ghaziabad

A clear direction
The four pillars of our vision set out the long term direction for the company where we want to go and how we are going to get there: We work to create a better future every day We help people feel good, look good and get more out of life with brands and services that are good for them and good for others. We will inspire people to take small everyday actions that can add up to a big difference for the world. We will develop new ways of doing business that will allow us to double the size of our company while reducing our environmental impact. We've always believed in the power of our brands to improve the quality of peoples lives and in doing the right thing. As our business grows, so do our responsibilities. We recognize that global challenges such as climate change concern us all. Considering the wider impact of our actions is embedded in our values and is a fundamental part of who we are.

Purpose & Principles

Our corporate purpose states that to succeed requires "the highest standards of corporate behavior towards everyone we work with, the communities we touch, and the environment on which we have an impact." Mission Unilever's mission is to add Vitality to life.

Vi si on
We're constantly developing our brands and products to keep pace with the changes in consumers lives
PGDM 28

IAMR, Ghaziabad

INTRODUCTION TO PROJECT TOPIC

PGDM 29

IAMR, Ghaziabad

INTRODUCTION TO PROJECT TOPIC

India with a population of 120 crores is potentially one of the largest consumer markets in the world. With urbanization and development of economy tested and interests of people changes according as the advanced nation. Marketing of any product depends upon the consumers wants, preferences, and taste. In market well consider things very carefully because FMCG is the essential consumer need purchased by individual to fulfill the need and for refreshment also. Therere many ways to consumer awareness & sell water purifier products in the market like dealers distribution, kiosk (canopy), d2d, cold call(referral, database..) etc. Applying various tools and techniques every water purifier company like HUL, EURKA FORBES, TATA, KENT etc. try to capture the market. . To increase the sales of water purifier products initially, the position of the company in the market is to offer various range of products. Potentiality of given products of the company strike rate of the company products and finally the current market share of the company products in the same product profile segment of the market must be known to us. So that we can design and implement the right marketing strategy for increase sales and consumer awareness as well as know the water drinking Habits in Jaipur City. In making a market survey of Access water purifiers on 4Ps of Marketing, I along with help my team members meet about 100 peoples. In the area which provided by my company guide to me, we tried to find out the success of marketing strategy like: sales of our products, brand and product awareness among the people.

PGDM 30

IAMR, Ghaziabad

Water Purifier-Pure it
Pureit is the worlds most advanced in-home water purifier. Pureit, a breakthrough offering of Hindustan Unilever (HUL), provides complete protection from all water-borne diseases, unmatched convenience and affordability. Pureits unique Germ kill Battery technology kills all harmful viruses and bacteria and removes parasites and pesticide impurities, giving you water that is "as safe as boiled water". It assures your family 100% protection from all water-borne diseases like jaundice, diarrhea, typhoid and cholera. Whats more, it doesnt need gas, electricity or continuous tap water supply. Pureit not only renders water micro-biologically safe, but also makes the water clear, odourless and good-tasting. Pureit does not leave any residual chlorine in the output water. The output water from Pureit meets stringent criteria for microbiologically safe drinking water, from one of the toughest regulatory agencies in the USA, EPA (Environmental Protection Agency). The performance of Pureit has also been tested by leading scientific and medical institutions in India and abroad. This patented technological breakthrough has been developed by HUL. This state-of the-art engineering developed by a team of over 100 Indian and international experts from HUL and Unilever Research Centers has made Pureit possible at the consumer price of just Rs. 2000. Pureit runs with a unique Germ kill Battery Kit that typically lasts for 1500 liters* of water. The Germ kill Battery Kit is priced at Rs.365. This means consumers will get 4 litres of water that is as safe as boiled water for just one rupee, which works out to an extremely affordable 24 paise per litre. Pureit in-home purification system uses a 4 stage purification process to deliver as safe as boiled water without the use of electricity and pressurized tap water.
PGDM 31

IAMR, Ghaziabad

Pureit purifies the input drinking water in four stages, namely; 1. Micro-fiber Mesh - Removes visible dirt 2. Compact Carbon Trap - Removes remaining dirt, harmful parasites & pesticide impurities 3. Germ kill Processor
TM

uses 'programmed chlorine release chlorine technology' and its

stored germ kill process targets and kills harmful virus and bacteria 4. Polisher
TM

removes residual chlorine and all disinfectant by-products, giving clear

odourless and great tasting water 5. Battery Life Indicator - Ensures total safety because when the germ kill power is exhausted, the indicator turns red, warning you to replace the battery

PGDM 32

IAMR, Ghaziabad

Some basic facts on water Problems

Infected water causes an estimated 80 percent, of disease in India, according to the World Health Organization (WHO). About half the worlds reported cases of polio, a crippling disease which is waterborne, occur in India. Each year, diarrhea kills 500,000 Indian children.

PGDM 33

IAMR, Ghaziabad

Water is pure at the source which is the municipal treatment plant. It comes to your house through pipes.

These pipes are very old and have rusted, which may be the cause of contamination.

Sewage lines are also in contact with underground water pipes. People also break open pipes at places to have access to water. These open cracks allow contaminated matter to get inside the water pipes.

With the ever growing problem of safe drinking water faced in India, HUL has come with a social initiative of providing safe and pure drinking water by means of Pureit, a quality yet affordable water Pureit.

Product analysis (Pureit) Pureit- a water purifier designed and developed to provide as safe as Boiled water Performance
Pureit removes visible dirt, kills all viruses and bacteria, removes parasites and pesticide impurities giving you water that is as safes as boiled water
PGDM 34

IAMR, Ghaziabad

Additional Features:

Great sensorial Clear, odour -free water : removes organics, pesticides, suspended matter (turbidity)

Any time , any where performance : works Without electricity Without piped water

Convenience No hassles of boiling, No maintenance costs like plumbing Cost Rs. 1/- for every 4 Liters of water

The Technology:
Chlorination of water is a known fact & is used as a world wide phenomenon by municipal corporations for supply of potable water.

It kills all bacteria and viruses in water. However chlorine added I n water by these corporation is not done scientifically especially in third world countries like). Hence the amount of chlorination may be more or less depending on the quantity of water; thus again making this water unsafe for human consumption.

PGDM 35

IAMR, Ghaziabad

Frame

Non woven

(polyester cloth filter)

MICRO FIBRE MASH Material Non woven polyester Removes suspended particulate > 10 micron Reduces filtration load on CCT Average flow rate of 5 lit/min COMPACT CARBON TRAP

Material intermediate activated carbon Binder is used for holding the carbon granules Removes particulate impurities < 10 micron Removes organic load improves taste of water Removes pesticides Removes cysts

PGDM 36

IAMR, Ghaziabad

GERM KILL PROCESSOR Attached with batching chamber. Stored germ-kill power target and kill harmful viruses and bacteria
Unique Auto Switch off Technology

> After the battery life indicator turns fully red, the purifier will begin to overflow from the battery life indicator on the front side. > Some water may still pass through the purifier. However, please note that the purifier has stopped purifying water & the water may no longer be safe for drinking. > The purifier has been designed to overflow to indicate that the battery has not been replaced even after it has turned fully red.

POLISHER
PGDM 37

IAMR, Ghaziabad

Made by activated granular carbon and coated by silver. This design has reduced pressure drop, eliminating the level of fines coming in the water and reduced wastage of plastics in battery Removes chlorine and disinfection by-products. Radial flow design low pressure drop. Finally removes all odour, makes water visually clear & gives great tasting water

Performance testing
PGDM 38

IAMR, Ghaziabad

Leading scientific institutions

o

Central Food Technology Research Institute.

o National Institute of Cholera and Enteric Diseases o Indian Public Health Association o Institution of Public Health Engineers

Leading Medical Institutions

o King Institute of Preventive Medicine o Sundaram Medical Foundation o Apollo Hospitals o SRL Ranbaxy Clinical Reference Laboratories

Leading International Institutions

o London School of Hygiene and Medicine UK
o

Scottish Parasite Diagnostic Laboratory, Glasgow, UK

COMPETITOR
PGDM 39

IAMR, Ghaziabad

Whirlpool Eureka Forbes Ltd. Usha Brita Kent zero B Philips

Ken star Tata Swatch

New Era (OSMO & Total aqua Fresh)

Key player in local market at Jaipur. Hindustan Unilever Ltd. Eureka Forbes Ltd. Kent Philips

How a Pureit is better than other method of water purifier:PGDM 40

IAMR, Ghaziabad

Main Feature

Pureit Boil water Advance UV inline Purifier

Advance Storage Purifier

No

Remove/Kills Viruses Bacteria Pesticides

Yes

Must boil water 3040minute

Yes

End off life indicator Auto switch off 18 ltr. Water storage Capacity Manual backup Not require Gas Not require electricity Dual fill Facility (Manual or Auto fill) Better Taste of water Removes Smell

Yes Yes Yes

No No Yes

Yes Yes No

No No Yes

Yes Yes Yes Yes

Yes No Yes No

No Yes No No

Yes Yes Yes No

Yes

No

Yes

No

PGDM 41

IAMR, Ghaziabad MARKETIG STRATEGY

TARGET MARKET STRATEGY

(Long Term)

MARKETIG MIX STRATEGY

(Short-

Term)

PRODUCT/ SERVICE STRATEGY

PROMOTION/ MARKETING COMMUNICATION STRATEGY

PRICE STRATEGY

DISTRIBUTION STRATEGY

4 PS of Marketing Strategies
The major marketing management decision can be classified on one of following four categories Product Price Place Promotion

These variables are known as the marketing mix or 4 Ps of marketing. They are the variables that marketing managers can control in order to best satisfy customers in the target market.
PGDM 42

IAMR, Ghaziabad

Product: The product is the physical product or service offered to the costumer. In the case of physical product, it also refers to any services or conveniences that are part of the offering. Product decision includes aspects such as functions, appearance, packaging, service, warranty, etc.

Price: Pricing decision should take into account profit margins and the probable pricing response of competitors. Pricing includes not only the list price, but also discounts, financing, and other options such as leasing. Place: Place decisions are those associated with channels of distribution that serve as the means for getting the product to the target customers. The distribution system performs transactional, logistical, and facilitating functions. Promotion: Promotion decisions are those related to communicating and selling to potential consumers.
Since these costs can be large in proportion to the product price, a break-even analysis should be performed when making promotion decision. It is useful to know the value off a customer in order to determine whether addition customers are worth the cost of acquiring them.

PGDM 43

IAMR, Ghaziabad

PRODUCT/SERVICE STRATEGY OF WATER PURIFIER

4 variety available in the market Easy availability nation wide Best quality of used plastic (ABS food grade) Best quality based technological parts used. Designed and developed to provide As safe as Boiled Water Very attractive design in two color ( Royal blue and Burgundy ) Pure it removes visible dirt, kills all harmful viruses and bacteria, Removes parasites and pesticide impurities giving you water is as Save as Boiled water Great sensorial- Clear, odour-free water: removes organics, Pesticides, suspended matter (turbidity) Any time, anywhere (portable) performance : works-without electricitywithout piped water Very easy to use Convenience No hassles of boiling, No maintenance costs like Plumbing Cost- Rs.1 /- for every 4 Liters of water Top most brand name ( Hindustan Unilever Ltd ) Quick service ( with In 24 hour ) Life time free service 6 month warranty period

PGDM 44

IAMR, Ghaziabad

PRICE STRATEGY OF WATER PURIFIER

Penetration strategy Product price range started for 1000 5200 Very Low cost of maintenance and consumable Low cost for product Best price for other than competitor Attractive discount on replacement of device for customer No credit terms Attractive allowance for dealers

PROMOTION / MARKETING COMMUNICATION STRATEGY OF WATER PURIFIER

Activated subscription immediately Fastly installation of products Properly repair services Free Services during life time Commercial TV advertisement Advertisement in news paper Broacher Sales force (8000+ across country) Marketing surveys through:o Kiosk o Demonstration o Cold call
PGDM 45

IAMR, Ghaziabad

o Reference by old customer

PLACE / DISTRIBUTION STRATEGY OF WATER PURIFIER

Launched in Chennai : end 2003 Identify the places where Increase impurities than use for water Identify the places where Increase disease National launch in beginning 2007 Now present in all states Where Direct sales possibility more (urban areas mostly) Easy available product (Good Transport facility )
At Jaipur 1 distributors (4 zone) and many dealers

PGDM 46

IAMR, Ghaziabad

SCOPE AND OBJECTIVE OF THE STUDY

PGDM 47

IAMR, Ghaziabad

SCOPE OF THE STUDY

This will help us to know the market tends demand and consumption patterns future prospectus in term of potential growth consumer test and buying behavior for the HUL product water purifier and other aspects related to channels and networks i.e. distribution. At the same time some bottlenecks and loopholes in the entire process could also be taken into consideration for their solution as well as betterments. In short following few aspects could be taken care of through this study:-

To study distribution network of HUL.

To identify the attributes those compel the dealers to select the product..
To study about the relationship and association of the household with the company.

To identify the dealers response towards brands they are dealing. To know about the credit policy of the company (motivational tools) Popularity of company product among customers.
Customers opinion towards packaging. To know about the awareness of drinking water used by various households.

PGDM 48

IAMR, Ghaziabad

OBJECTIVE OF THE STUDY

The main objective of this project is to find, what are the steps Hindustan Unilever Ltd. is adapting to be market leader and to differentiate itself from its competitors.
Most of the product of HUL comes in the category of convenience products. They are

frequently used and bought by the customers. There is large no. of players in the market, who are supplying similar product to the customers. Now, customers have become smart, they have great knowledge of market, product and suppliers. So, they are looking for the product which is providing something extra.
HUL has a wide range of product in FMCG sector, covering almost every needs and

wants of the customers. It has products for child, young & adult, male & female, etc. So, it has to differentiate its products taking into account the needs and demands of all the sectors of the society. Not, only product but it has to look upon the services and feed back from customers also. It should do something to give after sales service and collect feed back from the customers.
The basic objective of this project is as mentioned above to find ways so that HUL

remain market leader by considering all the needs & wants and fulfilling their demand.

PGDM 49

IAMR, Ghaziabad

RESEARCH METHODOLOGY
Its the way by which we collected data and used it to analysis the available fact for arriving at a particular results and suggestion. Basically there are two ways of collecting the data primary & secondary

RESEARCH DESIGN
It consists of clean statement of the research problem procedures and information processing and analysis of data collected. It includes hypothesis also. I have used Descriptive Research which includes survey and fact-finding enquiries of different kinds. The main characteristics of this method are that the researchers have no control over the variables; he can only report what has happened or what is happening. The major purpose of descriptive research is description of the state of affairs as exists as present.

Problem to retailers with their respective FMCG Company. Taste and preference of retailers and consumers towards the brand. Strategy of different players in the market. Different schemes of different brands.

Descriptive research design: - alone with some exploratory research was applied which descriptive the state of affairs as they subsists. Descriptive research was used in the study of marketing strategies for the sale of companys product also studying about the parameters which affect the competitiveness of the product. Analytical research:- in this kind of research researcher uses facts or information which are already available and analysis these for critical and rational facts of the past and present tends in
PGDM 50

IAMR, Ghaziabad

the demand and consumption, quality of product, packaging methods, supply and distribution and analyzed them for critical result and suggestion some recommendation.

SAMPLING PLAN
Sampling methods:- Snow ball sampling has been used for the purpose of those consumers and prospective customers as it helped in knowing the no. of users of Pureit product and convenient sampling methods was used for distributers in distance place as accessibility had emerged as a problem in some cases. Sampling unit: - It defines the target population that will sample together for carrying out the analysis. Here it includes different areas and households. Sampling size: - For conducting the study distribution channel system of HUL some region like Vidhayadhar Nagar, Shastri Nagar was selected.

ASSUMPTION OF THE STUDY

Questionnaire is distributed to different households in the different areas. Respondent have responded correctly. Information collected through various source is correct.

DATA ANALYSIS
Data become useful only affect they are properly analyzed. Data analysis involves coverings as series of recorded observation i.e. data into descriptive statement and inference about relationship. This task is helpful in identified the areas where the company each improve further collected data was analysis by the use of simple statistic tools like percentage and (univariate analysis) result have been represented by using bar chart columns and pie chart.
PGDM 51

IAMR, Ghaziabad

DATA COLLECTION
This was done by using:A. Primary data. These are the fast hand information as observation in leads to collect through

surveying as interviewing using questionnaire and schedules. Questionnaire- it can be recognized as a schedule, interview from or measuring instrument is a formalized set of question for obtaining information from the repaired. It is widely used in consumer and industrial marketing research analysis.
B. Secondary data these are the data which are already available in data which are already

available in usable forms various type secondary data used. Literature from various papers, journals, and magazines. E.g. News and Views and paper India. Annual report (previous record of the company.) Internet surfing. Other official sources.

RESEARCH APPROACH
PGDM 52

IAMR, Ghaziabad

The research is based initially on an exploratory research & finally followed by descriptive research.

RESEARCH INSTRUMENTS
The research instrument used in the study was predesigned up to designed questionnaire with closed ended multiple choice & open-ended questions.

QUESTIONNAIRE
The questionnaire is by far the most common instrument in collecting primary data & the questionnaire consists of question presented to respondent for their answers. The questionnaire used a set of open-ended question.

SAMPLE SIZE
Sample size is 100 households Type of research Statistical tools Data collection Descriptive research (it includes facts findings service) Pie charts, bar diagrams etc. Through questionnaire
PGDM 53

IAMR, Ghaziabad

UNIVERSE
In the data of the sampling, large sample units are preferred to get the accurate outcome of the research. I took two place as a sample for survey i.e. Vidhyadhar Nagar and Shastri Nagar in Jaipur

PGDM 54

IAMR, Ghaziabad

SWOT Analysis

PGDM 55

IAMR, Ghaziabad

PGDM 56

IAMR, Ghaziabad

DATA ANALYSIS & INTERPRETATION

Q1. How do you treat your water drinking water?

o Do nothing
PGDM 57

IAMR, Ghaziabad

o Boiled water o Use electrical water purifier o Use non electrical water purifier

Interpretation :-After the survey of 100 households: Most of the peoples are using electric water purifiers
This shows that people are more conscious about there health

Only a few portion of the households are not using any kind of water purifiers

Q2. Do you know that 80% of the diseases in our country are water bound?
Yes
PGDM 58

IAMR, Ghaziabad

No Not aware

Interpretation:- From the survey of 100 persons I found that

75% of the people are aware that most of diseases are mainly due to the water. 17%ofthe peoples say that it is not because of water there family members gets ill. 8% of the people are not aware about water born diseases

Q3. While buying any water purifier what comes to your mind first?
PGDM 59

IAMR, Ghaziabad

o Price o Health & Safety o Both

PGDM 60

IAMR, Ghaziabad

B uyingPreference

Both 15%
P rice 10%
Health& S afety 75%

InterpretationAfter a survey, I found that 75% people preference health and safety in buying water purifier.

PGDM 61

IAMR, Ghaziabad

Pureit offers an economical way of getting great tasting and 100 % safe drinking water. People are more conscious about they health.
They mainly make use of water which is rich in minerals.

Q4. Which Companies purifier do you use and prefer to buy it?
o Pure it o Aqua guard or Aqua sure o Kent water purifier o Philips o Usha Brita o Others

PGDM 62

IAMR, Ghaziabad

W ater Purifierof differentCom panies

25

20

15

10

) 0 ( d l s t i n u f . o N
5 0

pureit

a g qua uard

K ent

Philips

Usha

other

Interpretation- After a survey of 100 house holds, I have found that Pureit is the market leader.

W ater Purifier Com apnies

The sale of HUL water purifier is more then other purifier companies.

Aquaguard is the closest competitor of Pureit. Due to entrance of new companies like Kent, Philips and usha, HUL is facing a tough competition.

Q5. Comment on the price of your water purifier?

PGDM 63

IAMR, Ghaziabad

o Affordable o High o Should be Revised Comments on Prices of water purifiers

Revised-17%

Affordable53%
H h-30% ig

Interpretation- after a survey, I found that price of water purifier is Affordable for 53% people,

PGDM 64

IAMR, Ghaziabad

The price is high for 30% people. The water purifier Companies should reduce there prices in order to increase its market share

Q6.Do you know that boiled water is not necessarily safe water?
o Yes o No

PGDM 65

IAMR, Ghaziabad

Numberof people usingwater purifier yes no

38%

62%

Interpretation - After a survey of about 100 house holds, I have found that 62% says that boil water is safe.

38% of the people have a opinion that boil water is safe only for few hours This shows that even after boiling water isnot safe for drinking purpose.

PGDM 66

IAMR, Ghaziabad

Q7. Have you recently come across any kind of marketing activities for

purifiers?
o Kiosk o Demonstration o Direct Marketing o T V Commercial

PGDM 67

IAMR, Ghaziabad

Mark etingActivity
Demonstration TV Commercial Kiosk Direct Marketing

K iosk 10%

D irect Mark eting 15%

Dem onstra ti on 5%

T V C m om ercial 70%
Interpretation- After a survey I found that TV advertisement play main role in making awareness. 70% People come product knowledge through TV Commercial, 15% people
PGDM 68

IAMR, Ghaziabad

come through direct marketing, 10 % People come through Kiosk and 5% people come demonstration marketing activity.

Q8. Do you get any type of after sale services from the Company ?
o Yes o No o Exceptional

PGDM 69

IAMR, Ghaziabad

After S ales S ervice

35 30 25
e l 20 t i T s i x A 15

After Sales Service

10 5 0 yes no exceptional

Interpretation-after a survey, I found that 52% water purifier not dependable on company to timely service..
People are in need those companies who can provide them suggestions and can help in

solving there problems regarding the product they are using.

PGDM 70

IAMR, Ghaziabad

Q9. Criteria considered for Purchase?

1. Brand name 2. Technology 3. Aesthetics 4. Price

PGDM 71

IAMR, Ghaziabad

Whatis Important?
40 35 30 25 20
e l t T s i x A

15 10 5 0 0 1 2 3 4 5

What is Im port

AxisT itle Interpretation- In the survey of 100 people randomly, I found that 30 people gives

importance to price and then after they consider the Brand name. The technology used must also be considered by the Companies in order to increase there profits.

PGDM 72

IAMR, Ghaziabad

Q10.Where you did heard about the product?

o TV commercial o Newspaper print ads o In shop branding o Friends references

PGDM 73

IAMR, Ghaziabad

Preference
40 35 30 25 20 15 10 5 0 TV papaper Com ercial News m print Ad

Preferen

F riends R eference

Ins hop branding

PGDM 74

IAMR, Ghaziabad

Interpretation: from that above graph it is clear that most portion of the households purchse products of Companies by watching TV commercial advertisements. The Companies should be more focused on TV commercial Advertisements.

Q11. Where do you prefer to buy a water purifier from?

o Retail Outlets o Franchisee dealers o Direct Marketing

PGDM 75

IAMR, Ghaziabad

45

45 40 35 30 25 20 15 10 5 0
R etailsOutlets D irect Marketing F ranchis ee
20 35

Preffered Placesto buy

PGDM 76

IAMR, Ghaziabad

Interpretation- in the survey I found that people like to purchase water purifier by direct marketing. In the survey I found that 45% people preferred direct marketing, 35% people preferred Retails outlets and 20% people preferred Franchisee to purchase the water purifier.

PGDM 77

IAMR, Ghaziabad

Q12. Problems regarding: Colour Smell

Other visible impurities

Interpretation: After the survey I found that only a few households are facing problems regarding smell. colour and other impurities.

PGDM 78

IAMR, Ghaziabad

FINDINGS & RECOMMENDATIONS FROM THE PROJECT

As per the survey done following were the findings and recommendations of the survey:. o Customer service is something which company should pay more attention at.
o

All models not available for display in retail outlets and also brochures should be made available.

o Sales person at the retails counters should have proper knowledge about the product. o Should focus more on brand awareness. o TV advertisements can be renewed explaining the product feature and aggressive marketing will help the company. o Awareness of the product is less among the people. So, the company may take several steps to create such awareness regarding its values to the customers. o The company can adopt new strategies and policies to overcome the competition.

PGDM 79

IAMR, Ghaziabad

LIMITATIONS OF STUDY
This survey report is also not free from limitations as usual. However the absence of such limitation would have improved the quality of report as given
> Limited time period restricted to go in for more details the period was very short to

survey such a large area. > Many respondents were not interested to give the required time for the questionnaire. > Respondents sometimes act artificially when know their information is noted down. > There was only some certain hours in a day in the idle hours in which the respondents was ready to talk. > This project was done on the basis of questionnaire through survey, so it may possible here that some of them might have not provided the correct information.

PGDM 80

IAMR, Ghaziabad

Conclusion
Hindustan Unilever ltd. Is a leading FMCG company in India and from last three consecutive years has shown accelerated growth in FMCG portfolio. Customers in India are also spending more in FMCG as their standard of living is growing. HUL has placed itself successfully in the position of market leader in FMCG products. 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. 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 also started project SHAKTI that has provided it direct reach to rural market. 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. This will also be helpful not only increasing its market share but also fight competition I found many Water purifiers in the market, which can be compared with Pureit. As a conclusion I found that particularly in my provided area Pureit is really doing well and its performance is on surprising level. During the fieldwork and after intensive study it was found that main competitor of Parle is Aqua guard (Eureka forbs Ltd). So this is the comparison with other water purifier brands. According to our findings, we found that Pureit is the market leader followed by Hindustan Unilever Ltd.

PGDM 81

IAMR, Ghaziabad

ANNEXURE

PGDM 82

IAMR, Ghaziabad

QUESTIONNAIRE FOR PROSPECTIVE CUSTOMER

Name :.. Address:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Phone No.: - --------------------------1.

How do you treat your water drinking water?

o Do nothing o Boiled water o Use electrical water purifier o Use non electrical water purifier

2.

. Do you know that 80% of the diseases in our country are water bound?
Yes No Not aware

3.

Which companies purifier do you use and prefer to buy it ?

o Pure it o Aqua guard or Aqua sure o Kent water purifier o Philips o Usha Brita
PGDM 83

IAMR, Ghaziabad

o Others

Q4.While buying any water purifier what comes to your mind first?
o Price o Health & Safety o Both
o

Q5. Comment on the price of your water purifier?

o Affordable o High o Should be Revised

Q6. Do you know that boiled water is not necessarily safe water?
o Yes o No

Q7.Have you recently come across any kind of marketing activities for purifiers?
o Kiosk o Demonstration
PGDM 84

IAMR, Ghaziabad

o Direct Marketing

Q8.Do you get any type of after sale services from the company ?
o Yes o No o Exceptional

Q9. Criteria considered for Purchase?

1. Brand name 2. Technology 3. Aesthetics 4. Price

Q10.Where you did heard about the product?

o TV commercial o Newspaper print ads o In shop branding o Friends references

Q11.Where do you prefer to buy a water purifier from?

PGDM 85

IAMR, Ghaziabad

o Retail Outlets o Franchisee dealers o Direct Marketing

Q12. Problems regarding: Colour Smell Other visible impurities

DATE SIGNATURE-

BIBLIOGRAPHY www.HUL.com www.customercomplaint.in www.golakindia.com www.icmrindia.org www.compareindia.com www.pureit.in

PGDM 86

IAMR, Ghaziabad

Books Referred Marketing Research by C. R. Kothari

PGDM 87