Under The Supervision Of

: -

Submitted by: -

Ms. K.MANWANI

ISHEETA
B.COM(HONS) 3RD YEAR ROLL NO-061 SEC-B

ACKNOWLEDGEMENT

Doing this project has been of immense benefit to me as I had the opportunity of getting involved in the issue concerning the company that is of high interest to me i.e. Hindustan UNILever Limited. The experience was very satisfying. While working on this project, I was confronted with many such issues of HUL, which provided me a deeper insight of it. Today, I perceive myself as a person who has better knowledge of consumer care products as compared to what I had before this project commenced. This project work included application of various marketing techniques. These exercises provided me with a practical insight and were of great benefit to me. At the end I would like to thanks my parents, friends and my mentor MS.K.MANWANI, without whose support it was not possible to complete my project.

CERTIFICATE This is to certify that the project “Skin care products of Hindustan Unilever Limited” is the original work of ISHEETA GARG ,Roll no. 061 of “S.P.M. College”,Delhi University. And the project had been undertaken in my

supervision.I also certify that no part of this project has been submitted for any other degree/diploma courses in any other university.

MS.K.MANWANI Mentor Signature Signature

ISHEETA GARG Candidate

INDEX 1.

INTRODUCTION ABOUT THE COMPANY Hindustan Unilever Ltd (HUL) is India's largest Fast Moving Consumer Goods (FMCG) company. 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 a host of categories, such as soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary products. These products are manufactured over 40 factories across India and the associated operations involve over 2,000 suppliers and associates. Hindustan Unilever Limited's distribution network comprises about 4,000 redistribution stockists, covering 6.3 million retail outlets reaching the entire urban population, and about 250 million rural consumers. HUL is also one of India's largest exporters. It has been recognised as a Golden Super Star Trading House by the Government of India. Presently, HUL has over 16,000 employees including over 1,200 managers. Its mission is to "add vitality to life." In the late 19th and early 20th century Unilever used to export its products to India. This process began in 1888 with the export of Sunlight soap, which was followed by Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim soon after. 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). The three companies were merged in November 1956 and the new entity that came into existence after merger was called as Hindustan Lever Limited. HUL

offered 10% of its equity to the Indian public, and it was the first among the foreign subsidiaries to do so. Brooke Bond entered Indian market in 1900 and in 1903, it launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was formed. Unilever acquired Brooke Bond through an international acquisition. Similarly, Lipton's link with India date back to 1898. Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited was incorporated. Pond's (India) had been in Indian market since 1947. It joined the Unilever ranks through an international acquisition of Chesebrough Pond's USA in 1986. The liberalization of Indian economy in 1991 and subsequent removal of the regulatory framework allowed HUL to explore every single product and opportunity segment, without any constraints on production capacity. The 1990s witnessed a string of crucial mergers, acquisitions and alliances. In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with significant interests in Instant Coffee. In 1993, it acquired the Kissan business from the UB Group and the Dollops Ice-cream business from Cadbury India. In one of the most talked about events of India's corporate history, the erstwhile Tata Oil Mills Company (TOMCO) merged with HUL, effective from April 1, 1993. In July 1993, Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL). Brooke Bond Lipton India Limited launched Wall's range of Frozen Desserts in 1994 and by the end of the year, HUL entered into a strategic alliance with the Kwality Icecream Group families. BBLIL merged with HUL, with effect from January 1, 1996. HUL has also set up a subsidiary in Nepal, Nepal Lever Limited (NLL). The NLL factory manufactures HUL's products like Soaps, Detergents and Personal Products both for the domestic market and exports to India. In January 2000, as part of its divestment strategy, the government decided to award 74

per cent equity in Modern Foods to HLL. In 2002, HLL acquired the government's remaining stake in Modern Foods. In February 2007, the company has been renamed to "Hindustan Unilever Limited" to strike the optimum balance between maintaining the heritage of the Company and the future benefits and synergies of global alignment with the corporate name of "Unilever".

OBJECTIVES • To understand the skin category of Hindustan Unilever Limited. • To study various brands of HUL in skin category. • To study the competitive brands in the market of skin category. • To find the market share of the HUL brands and its competitive brands. • To determine the key areas of strength and weakness for HUL brands. • To develop a promotion plan for brand communication of the HUL skin category products. COMPANY PROFILE Hindustan Lever Limited Company Profile is the essential source for top-level company data and information. The report examines the company’s key business structure and operations, history and products, and provides summary

analysis of its key revenue lines and strategy. Scope of the Report - Provides all the crucial company information required for business and competitor intelligence needs - Contains a study of the major internal and external factors affecting the company in the form of a Swot analysis as well as a breakdown and examination of leading product revenue streams - Data is supplemented with details on the company’s history, key executives, business description, locations and subsidiaries as well as a list of products and services and the latest available company statement" Reasons to Purchase for suppliers - Support sales activities by understanding your customers’ businesses better - Qualify prospective partners and suppliers

- Keep fully up to date on your competitors’ business structure, strategy and prospects - Obtain the most up to date company information available

HISTORY YEAR MILESTONES 1888 Sunlight soap introduced in India. 1895 Lifebuoy soap launched; Lever Brothers appoints agents in Mumbai, Chennai, Kolkata, and Karachi.

1902 Pears soap introduced in India.

1903 Brooke Bond Red Label tea launched. 1905 Lux flakes introduced. 1913 Vim scouring powder introduced. 1914 Vinolia soap launched in India. Vanaspati introduced by Dutch margarine 1918 manufacturers like Van den Berghs, Jurgens, Verschure Creameries, and Hartogs. 1922 Rinso soap powder introduced. 1924 Gibbs dental preparations launched. 1925 Lever Brothers gets full control of North West Soap Company. Unilever is formed on January 1 through merger of Lever Brothers and Margarine Unie.

1926 Hartogs registers Dalda Trademark. 1930

Hindustan Vanaspati Manufacturing Company 1931 registered on November 27; Sewri factory site bought. 1932 Vanaspati manufacture starts at Sewri. Application made for setting up soap factory next to 1933 the Vanaspati factory at Sewri; Lever Brothers India Limited incorporated on October 17. Soap manufacture begins at Sewri factory in October; North West Soap Company's Garden Reach 1934 Factory, Kolkata rented and expanded to produce Lever brands. 1935 United Traders incorporated on May 11 to market

Personal Products. 1937 Mr. Prakash Tandon, one of the first Indian covenanted managers, joins HVM.

Garden Reach Factory purchased outright; 1939 concentration on building up Dalda Vanaspati as a brand. 1941 Agencies in Mumbai, Chennai, Kolkata and Karachi taken over; company acquires own sales force.

Unilever takes firm decision to "train Indians to take 1942 over junior and senior management positions instead of Europeans". 1943 1944 Personal Products manufacture begins in India at Garden Reach Factory. Reorganisation of the three companies with common management but separate marketing operations.

1947 Pond's Cold Cream launched. Mr. Prakash Tandon becomes first Indian Director. 1951 Shamnagar, Tiruchy, and Ghaziabad Vanaspati factories bought. 1955 65% of managers are Indians. 1956 1957 Three companies merge to form Hindustan Unilever Limited, with 10% Indian equity participation. Unilever Special Committee approves research activity by Hindustan Unilever.

1958 Research Unit starts functioning at Mumbai Factory. 1959 Surf launched.

1961

Mr. Prakash Tandon takes over as the first Indian Chairman; 191 of the 205 managers are Indians. Head Office building at Backbay Reclamation, Mumbai, opened. Etah dairy set up, Anik ghee launched; Animal feeds plant at Ghaziabad; Sunsilk shampoo launched. Signal toothpaste launched; Indian shareholding increases to 14%.

1962 Formal Exports Department starts. 1963 1964 1965

Lever's baby food, more new foods introduced; Nickel catalyst production begins; Indian 1966 shareholding increases to 15%. Statutory price control on Vanaspati; Taj Mahal tea launched. 1967 Hindustan Unilever Research Centre, opens in Mumbai.

Mr. V. G. Rajadhyaksha takes over as Chairman from Mr. Prakash Tandon; Fine Chemicals Unit 1968 commissioned at Andheri; informal price control on soap begins. 1969 Rin bar launched; Fine Chemicals Unit starts production; Bru coffee launched

Mr. V. G. Rajadhyaksha presents plan for diversification into chemicals to Unilever Special 1971 Committee - plan approved; Clinic shampoo launched. 1973 Mr. T. Thomas takes over as Chairman from Mr. V. G. Rajadhyaksha.

Pilot plant for industrial chemicals at Taloja; 1974 informal price control on soaps withdrawn; Liril marketed. Ten-year modernisation plan for soaps and detergent plants; Jammu project work begins; 1975 statutory price control on Vanaspati and baby foods withdrawn; Close-up toothpaste launched. 1976 1977 1978 1979 Construction work of Haldia chemicals complex begins; Taloja chemicals unit begins functioning. Jammu synthetic Detergents plant inaugurated; Indian shareholding increases to 18.57%. Indian shareholding increases to 34%; Fair & Lovely skin cream launched. Sodium Tripolyphospate plant at Haldia commissioned.

Dr. A. S. Ganguly takes over as Chairman from Mr. 1980 T. Thomas; Unilever shareholding in the company comes down to 51%. 1982 Government allows 51% Unilever shareholding. 1984 Foods, Animal Feeds businesses transferred to Lipton.

Agri-products unit at Hyderabad starts functioning first range of hybrid seeds comes out; Khamgaon 1986 Soaps unit and Yavatmal Personal Products unit start production. 1988 Launch of Lipton Taaza tea. 1990 Mr. S. M. Datta takes over as Chairman from Dr. A.

S. Ganguly. 1991 Surf Ultra detergent launched. 1992 HUL recognised by Government of India as Star Trading House in Exports.

HUL's largest competitor, Tata Oil Mills Company (TOMCO), merges with the company with effect from April 1, 1993, the biggest such in Indian 1993 industry till that time. Merger ultimately accomplished in December 1994; Launch of Vim bar; Kissan acquired from the UB Group. HUL forms Unilever Nepal Limited, HUL and USbased Kimberley-Clark Corporation form 50:50 joint venture - Kimberley-Clark Lever Ltd. - to market 1994 Huggies diapers and Kotex feminine care products. Factory set up at Pune in 1995; HUL acquires Kwality and Milkfood 100% brandnames and distribution assets. HUL introduces Wall's. HUL and Indian cosmetics major, Lakme Ltd., form 50:50 joint venture – Lakme Lever Ltd.; HUL enters 1995 branded staples business with salt; HUL recognised as Super Star Trading House. Mr. K. B. Dadiseth takes over as Chairman from Mr. S. M. Datta; Merger of Group company, Brooke 1996 Bond Lipton India Limited, with HUL, with effect from January 1; HUL introduces branded atta; Surf Excel launched. Unilever sets up International Research Laboratory 1997 in Bangalore; new Regional Innovation Centres also come up.

Group company, Pond's India Ltd., merges with HUL with effect from January 1, 1998. HUL acquires 1998 Lakme brand, factories and Lakme Ltd.'s 50% equity in Lakme Lever Ltd. Mr. M. S. Banga takes over as Chairman from Mr. K. B. Dadiseth, who joins the Unilever Board; HUL 2000 acquires 74% stake in Modern Food Industries Ltd., the first public sector company to be disinvested by the Government of India. HUL enters Ayurvedic health & beauty centre 2002 category with the Ayush range and Ayush Therapy Centres. 2003 Launch of Hindustan Lever Network; acquisition of the Amalgam Group

2005 Launch of "Pureit" water purifiers

DISTRIBUTION NETWORK Isn’t surprising that we get whatever we need near to our house for products which are manufactured far away.You got to have a cutting distribution network in place to make it successful. At Hindustan UNILever Limited, the distribution network is one of its key strengths that help them reach its products across the length and breadth of this vast country.That’s why one can ensure that Mr. Rahul in Kanyakumari gets his Lifebuoy soap and Mrs. Jain in Gurgaon gets her favourite Knorr Annapurna atta whenever they feel the need for it. At the cutting edge of competitiveness To meet the ever-changing needs of the consumer, HUL has set up a distribution network that ensures availability of all its products, in all outlets, at all times. This includes, maintaining favourable trade relations, providing innovative incentives to retailers and organising demand generation activities among a host of other things. HUL's products, manufactured across the country, are

distributed through a network of about 7,000 redistribution stockists covering about one million retail outlets. The distribution network directly covers the entire urban population. The general trade comprises grocery stores, chemists, wholesale, kiosks and general stores. Hindustan Unilever services each with a tailor-made mix of services. The emphasis is equally on using stores for direct contact with consumers, as much as is possible through in-store facilitators. At the supermarkets Self-service stores and supermarkets are fast emerging in metros and large towns. To service modern retailing outlets in the metros, HUL has set up a full-scale sales organisation, exclusively for this channel. The business system delivers excellent customer service, while driving growth for the company and the store. At the same time, innovative marketing initiatives are taken to provide consumers with experience of our brands at the store itself, through product tests and in-store sampling. In the villages HUL has also revamped its sales organisation in the rural

markets to fully meet the emerging needs and increased purchasing power of the rural population. The company has brought all markets with populations of below 50,000 under one rural sales organisation. The team comprises an exclusive sales force and exclusive redistribution stockists, under the charge of dedicated managers. The team focuses on building superior availability, while enabling brand building in the deepest interiors. HUL's distribution network in rural India already directly covers about 50,000 villages, reaching about 250 million consumers, through about 6000 sub-stockists. Project Shakti, HUL's partnership with Self Help Groups of rural women, is becoming an extended arm of the company's operation in rural hinterlands. Started in 2001, Project Shakti has already been extended to about 50,000 villages in 12 states - Andhra Pradesh, Karnataka, Gujarat, Madhya Pradesh, Tamil Nadu, Chattisgarh, Uttar Pradesh, Orissa, Punjab, Rajasthan, Maharashtra and West Bengal. The respective state governments and several NGOs are actively involved in the initiative. The SHGs have chosen to partner with HUL as a business venture, armed with training from HUL and support from government agencies concerned and NGOs.

Hindustan Unilever Network (HUN) is the company's arm in the Direct Selling channel, one of the fastest growing in India today. It already has about 3.5 lakh consultants - all independent entrepreneurs, trained and guided by HLN's expert managers. HLN has already spread to over 1500 towns and cities, covering 80% of the urban population, backed by 42 offices and 240 service centres across the country. It presents a range of customised offerings in Home & Personal Care and Foods.

Health & Beauty Services are Hindustan Unilever's simultaneous foray to meet the increasing consumer need for such products and services. Lakme Salons provide specialised beauty services and solutions, under the recognised authority of the Lakme brand. The Ayush Therapy Centres provide easy access to authentic Ayurvedic treatments andproducts. Hindustan Unilever, which once pioneered distribution in India, is today reinventing distribution - creating new channels, and redefining the way current channels are serviced. In the process it is converging product availability, with brand communication and brand experience.

Enhancing awareness Mass media reaches only 57% of the rural population. Generating awareness, then, means utilising targeted, unconventional media including ambient media. HUL has been utilising events such as fairs and festivals, haats, et al, as occasions for brand communication. Cinema vans, shopfronts, walls and wells are other media vehicles that it has utilised to heighten brand and pack visibility. Overcoming attitudes and habits Creating distributive reach is not sufficient to tap the rural markets. Market development can be a difficult task because in rural India, both consumption and penetration is low. For instance, only three out of 10 people in rural areas use toothpaste or talcum powder, or shampoo and skin care products, and only six use washing powders.

The road ahead The next phase of research has been to improve the functional delivery of HUL’s brands, ensuring that it is able to

fully satisfy consumer needs and remain ahead of competition. This is done through the development of innovative products and new processes, applied across the entire spectrum of the company's business. It is this development and application of technology that makes HUL, the market leader in areas as diverse as Fair & Lovely Cream and hybrid maize seeds. Research finds its application as much in Lifebuoy soap, as it does in the development of its functionalised biopolymers, which improve quality and productivity in the paper industry. It is often believed that the role of technology in the Packaged Mass Consumption Goods (PMCG) area is limited. HUL’s experience has been exactly the opposite; i.e. the technology in Packaged Mass Consumption Goods (PMCG) is critical. Skillfully applied it can result in fundamentally lower cost structures and the ability to deliver new and more exciting benefits to meet the growing aspirations of consumers. Recently, HUL has begun to use research to support its export initiatives, thus ensuring that the exports are both globally competitive and sustainable. For example, it has developed a cold-water soluble instant tea powder, which has become a major export product. HUL has been able to

isolate and process a powerful ultraviolet ray absorbing sunscreen from an indigenous naturally occurring vegetable oil. This is being exported to Europe and has significant long-term potential. Hindustan UNILever has been successful in the application of research because it has fully integrated with its business. A way forward for India could also be to ensure that strong linkages are forged between industry and the various research establishments.

MARKET PRESENCE:HUL’s purpose is to meet the everyday needs of people

everywhere. This vision has made HUL, India's largest Packaged Mass Consumption Goods Company, with leadership in Home and Personal Care Products and Foods and Beverages. It is the country's largest marketer of Soaps, Detergents, and Household Shampoos, Skin Care Care Products, products. Colour Cosmetics, Its expertise in Personal Products makes it the leader in Deodorants, and Fragrances. In Foods and Beverages, HUL remains the undisputed market leader in Tea, Processed Coffee, Branded Wheat Flour, Tomato Products, Ice Cream, Jams and Squashes. In New Ventures, the new entrants are in Healthcare, Confectioneries and Network Marketing. HUL is also one of the country's biggest exporters and has earned the distinction of a Super Star Trading House. Its Exports Division is a net foreign exchange earner. Among the Exports are branded Soaps and Detergents, Personal Products, Tea and Coffee, Basmati Rice, Castor Oil and its Derivatives, Meals/Extractions, and Marine Products. Hindustan UNILever has launched Hindustan UNILever Network, a unique Network Marketing opportunity. Hindustan UNILever Network aims to be the most preferred

business opportunity by partnering its Consultants to success and providing them with a business and selfdevelopment opportunity that is truly rewarding. HUL has so far been present in the Direct Selling Channel with Aviance, an international range of customized beauty solutions. With Hindustan UNILever Network, HUL plans to aggressively enter into other consumer categories by offering its Consultants an exclusive and complete range of high quality, high-performance products. The first such initiative through the launch of the Lever Home range of products for home care, kitchen care and laundry care will be in the market in February 2003. Aviance would come under the umbrella of Hindustan UNILever Network as the personal care beauty brand in this channel.

SWOT ANALYSIS:Strengths

HLL enjoys a formidable distribution network covering over 3400 distributors and 16 million outlets. This helps them maintain heavy volumes, and hence, fill the shelves of most outlets. The new sales organization named 'One HLL' brings "Household and Personal Care" and foods distribution networks together, thereby aligning all the units towards the common goal of achieving success. HLL has been continuously able to grow at a rate more than growth rate for FMCG Sector, thereby reaffirming its future stronghold in Indian market. Project Shakti - Rural India is spread across 627,000 villages and possesses a serious distribution challenge for FMCG Cos. HLL has come up with a unique and successful initiative wherein the women from the rural sector market HLL products, and hence, are able to reach the same wavelength as of the common man in village. Apart from product reach, the initiative also creates brand awareness amongst the lower strata of society. This has brought about phenomenal results.

Weaknesses HLL's 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. HLL's 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.As shown in above figure, the key differentiators for an FMCG player are ability to call shots and pricing power, and HLL has shown weakness over both these factors. HLL's weakness was its inability to transform its strategies at the right time. They continued with the same old strategy which helped them gain profits but was not genuine in this changed environment. HLL's risk aversion and market myopia led to stagnation of business, and ferocity of competition forced it into a defensive mode. Lack of pricing power in core business and absence of growth drivers have put HLL on a deflationary mode.

Opportunities  India is one of the world's largest producer of FMCG

goods but its exports are miniscule as compared to production. Though Indian Cos. have been going global, their focus is more towards Asian countries because of the similar preferences. HLL is one of the top companies exporting FMCG goods from India. An expansion of horizons towards more and more countries would help HLL grow its consumer base and henceforth the revenues.  Opportunity in Food Sector - The advent of modern trade has opened up greater opportunities for HLL to diversify its brand and strength its food division. It could look at introducing products from its parents stable like margarines and could also look at expanding its Knorr range of products.  Well-placed to take advantage of future FMCG Growth HLL reach out 80% of 207 million households in the country through various brands. It has a very well-defined product portfolio spread across many product categories.

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, agri, 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 HLL's Business. SSKI India has gone on to say, "We maintain Out performer on ITC with a price target of Rs. 2200, while our Under performer call on HLL remains unaltered (price target of Rs. 160)."

SKIN CATEGORY PEARS

Introduced in India in 1902, Pears soap has no equal. It is gentle enough, even for baby's skin. Pears is manufactured like any other soap, but unlike in conventional soaps, the glycerine is retained within the soap. That is the cause of its unique transparency. After manufacturing, the soap is mellowed under controlled conditions over weeks. At the end of this maturing process, it is individually polished and packed in cartons. Today Pears is available in three variants - the traditional amber variant, a green variant for oil control and a blue variant for germ protection.

FAIR & LOVELY

A woman's passion for beauty is universal and catering to this strong need is Fair & Lovely. Based on a revolutionary breakthrough in skin lightening technology, Fair & Lovely was launched in 1978. The Hindustan Lever Research Centre (it is among the largest research establishments in India's private sector, including pharmaceutical companies, with facilities in Mumbai and Bangalore) deployed technology, based on pioneering research in the science of skin lightening to develop Fair & Lovely. The formulation is patented. Its formulation acts safely and gently with the natural renewal process of the skin, making complexion fairer over a period of six weeks. Fair & Lovely is formulated with optimum levels of UV sunscreens and Niacinamide that is known to control dispersion of melanin in the skin. It is a patented and proprietary formulation, which has been in the market for 25 years. Niacinamide (Vitamin

B3) is a water-soluble vitamin and is widely distributed in cereals, fruits and vegetables - and its use in cosmetic formulations has been known for various end benefits. The UV components of the formulation are scientifically chosen and used at optimum levels to provide wide spectrum protection against UV rays of the sun. Specifically, this patented formulation offers a high UVA protection, which is more relevant to Asian skin than plain SPF protection creams sold in the West. All the active ingredients in the Fair & Lovely formulation function synergistically to lighten skin colour through a process that is natural, reversible and totally safe.

POND’S

Pond's has been synonymous with skin care in India since 1947.

The impressive track record of Pond's began when Theron T Pond, a pharmacist from Utica New York, introduced 'Pond's Golden Treasure' in 1846, a witch-hazel based wonder product. In 1914, Pond's Cold Cream and Vanishing Cream marked the brand's evolution to a beauty icon. In 1955 Pond's Extract Company merged with Chesebrough Manufacturing and in 1987 Unilever purchased Chesebrough-Pond's. By this time the Pond's brand had built up a powerful international presence. From one man in a tiny home-made laboratory, to today's state of the art R&D facilities led from Bangkok, Mumbai, New York and Tokyo, the Pond's promise has remained the same across 58 countries - to deliver products that make a real difference to women's skin and the way they live their lives.

VASELINE

Vaseline is a trusted brand worldwide associated with daily skin care and healthy skin for the entire family. Vaseline has been keeping skin healthy since 1870. The Vaseline Philosophy:

The need for Vaseline is based on real skin facts. We believe our skin is amazing. It protects us, heals itself, connects us to the

world, transmits emotions. And this amazing skin needs to be looked after. Nobody knows skin, and how to keep it at its healthy best. This why HUL make products that maintain our skin condition at its best and enhances its natural health. Vaseline Petroleum Jelly I.P. Vaseline Petroleum Jelly is a mixture of Mineral oils, Paraffin and microcrystalline waxes, is that when blended together, create something remarkable- it literally melts into your body, protecting the skin from within. Vaseline petroleum Jelly serves two functions. First it helps keep the outside world out – it protects skin from effects of weather and exposure. Second it acts like a sealant to keep the inside world in, thereby acting as a barrier to the natural water loss from our skin. So Skin that is dry and chapped is protected from drying elements, enabling skin softening moisture to build up naturally from inside the skin itself. Vaseline Total Moisture Body Lotion: Beneath the surface, your skin is 90% water, enabling it to act as a moisture and nutrient reserve. So keeping your skin well hydrated is critical to your well-being. Unfortunately however, our body tends to lose moisture throughout the day. Bathing, casual contact, washing, sitting in the AC for too long, seasonal changes, all robs the body of its moisture. Vaseline Total Moisture is a fast-absorbing lotion enriched with Soya and Oat protein that are known to nourish the

skin from deep inside while Vitamin E feeds your skin with the nutrient that is essential to keep it glowing. Together they result in healthy looking skin. Vaseline Aloe Cool and Fresh Body Lotion: With the goodness of Cucumber and Aloe Vera, this light moisturising body lotion is especially made to meet your skin needs in summer. Cucumber is a surprising beauty secret for the skin with its hydrating, cooling and soothing properties. Aloe Vera on the other hand, is an unparalleled moisturiser and cell rejuvenator which is excellent for dry skin. Together, these two ingredients can keep your skin looking and feeling its healthiest best.

LAKME

Half a century ago, as India took her steps into freedom, Lakme, India's first beauty brand was born. At a time when the beauty industry in India was at a nascent stage, Lakme tapped into what would grow to be amongst the leading, high consumer interest segments in the Indian Industry - that of skincare and cosmetic products. Armed with a potent combination of foresight, research and constant innovation, Lakme has grown to be the market leader in the cosmetics industry.

Lakme today has grown to have a wide variety of products and services that cover all facets of beauty care, and arm the consumer with products to pamper herself from head to toe. These include products for the lips, nails, eyes, face and skin, and services like the Lakme Beauty Salons.

LAKME SUMMER COLLECTION

Lakme Sun Expert Lakme Sun Expert Ultra matte Ultra matte SPF 20* super light sunscreen Lakme presents a revolutionary light insta oil absorb complex sunscreen, with insta oil absorb complex. This broad spectrum fluid instantly absorbs excess oil from the surface of the skin, leaving your face matte and shine-free. SPF 20*(Medium Protection) & SPF 30*(High Protection) Finally sunscreen comfortable enough to become a daily habit. Enabling you to do what is right for your skin- no matter what the weather.Its UVA and UVB absorbers give you perfect protection for medium levels of sun exposure, defending your skin from harmful sun damage.

How to Use: Apply on face, neck and other

exposed areas atleast 20minutes before stepping out in the skin. Wait for a minute before applying makeup re-apply every 3 to 4 hours. Click Here for More Details

Lakme Sun Expert sun protection creme moisture intense sunscreen

Lakme Sun Expert Moisture Intense Sunscreen SPF 30* with UVA and UVB Protection controls sun related damage like skin darkening, sun spots, premature ageing With extracts of Aloe Vera and Sweet Orange, this intense creme has a deep moisturising action. Best suited for Dry and Dehydrated skin. This formulation is water and sweat resistant.

SPF 30*(High Protection)

To Use: Apply daily to face and other exposed areas. Re-apply every 3 to 4 hours. Results: Moisturised skin that is protected from the harmful effects of the Sun. Key Ingredients: Aqua, Octyl Methoxycinnamate, Cyclomethicone, Benzophenone-3,

Titanium Dioxide, Perfume.

Lakme Sun Expert Sunscreen Lotion SPF-15 For All Skin types A 100% oil-free formulation that protects normal skin from 70% of skin damage. Specially formulated for Indian skin that tans easily, new Lakme Sun Expert has SPF 15 to prevent tanning and block out harmful rays. How it Works Moisturises, nourishes and prevents tanning, wrinkling, spots and keeps skin soft. SPF - 15 For All Skin types How to Use Massage gently onto face, neck, hands and other exposed parts of the body. Use daily, all year round, whether you are indoors or outdoors. .

Lakme Sun Expert Sunscreen Lotion

Lakme Sun Expert Sun Block For Sensitive Skin Lakme Sun Expert SunBlock An oil-free, water and sweat resistant formulation with enhanced protection from UVA and UVB radiation. Specially formulated for Indian skin that tans easily, new Lakme Sun Expert has SPF 25 to prevent tanning and block out harmful rays. How it Works Nourishes your skin and ensures long-lasting UV protection for sensitive skin. How to Use Massage gently onto face, neck, hands and other exposed parts of the body. Use daily, all year round, whether you are indoors or outdoors.

For Sensitive Skin

Lakme Sun Expert Sunscreen Soufflé

Lakme Sun Expert Sunscreen Soufflé For Oily Skin A unique, water-based, lightweight sunscreen that's non-greasy and prevents 70% of skin damage. Specially formulated for Indian skin that tans easily, new Lakme Sun Expert has SPF 20 to prevent tanning and block out harmful rays.

How it Works Prevents tanning and protects oily skin from sun damage. How to Use Massage gently onto face, neck, hands and other exposed parts of the body. Use daily, all year round, whether you are indoors or outdoors.

POND’S WHITE BEAUTY Part of the Unilever portfolio since 1986, Pond's recently announced the launch of 'Pond's White Beauty Detox' range that gives a visibly illuminated and nourished pink glow. Talking of luminous, Pond's White Beauty is not just about skin whitening for the consumer, but about a radiant healthy skin that gives a nourished pink glow. Pond's White Beauty has detoxifying vitamins B3, B6, E, and C, which neutralizes the effect of darkness-causing impurities found in the environment and reduces accumulated melanin, thus giving a smooth, pure and bright skin.

Pond's White Beauty represents the international expertise of Pond's in providing superlative skincare regimes. Increasingly, Indian women are looking for the complete skincare regime of cleansing, toning and moisturizing and this product range provides all beauty regime requirements.

The range consists of White Beauty Detox Cleanser which cleans thoroughly, White Beauty Detox Toner, which tightens the open pores and smoothens out the rough appearance of the skin; White Beauty Skin Lightening Cream with Detox vitamins that nourish skin from within, and White Beauty Detox Lotion, which replenishes skin's natural moisture level and gives visibly glowing and smooth pinkish skin.

POND’S AGE MIRACLE As a brand that understands women, around the world, Pond's recognizes that true beauty is derived from love and warmth as well as the credibility of an international skincare heavyweight. Pond's is offering a variety of ranges for women. Pond’s Age Miracle is another example of that. “Candlelight dinners, long drives and the sound of saxophones will be part of your lives, once again. The smell of love in the air, the feeling of your heart skipping a beat, once again.” When Hindustan Lever threw a party to formally launch its premium Pond's Age Miracle range it used these words in invitation. . The FMCG major promised to bring romance back into the 35-plus woman's life with a new look courtesy Pond's Age Miracle.

COMPETITIVE BRANDS PRODUCT PROFILE

FIAMA DI WILLS (ITC) The Fiama Di Wills range of soaps has been launched under the sub - brand SkinSense. The first variant to be introduced in this range is Soft Green. This is a gentle caring soap, which helps enhance retention of skin proteins making skin look beautiful and youthful. In February 2008, ITC launched two new ranges of soap - Vivel Di Wills and Vivel -to cater to the skincare needs of a wide range of consumers. Backed by consumer insights, the ranges offer a unique value proposition of bringing together ingredients that provide multiple benefits of Nourishment, Protection and Hydration in a single product. Hence providing the ever discerning consumer complete care. The packaging, reflecting the philosophy of the brand, fuses multiple benefits. The unique carton pack has been developed by ITC’s design team to provide a novel consumer experience. The Vivel Di Wills range is available in two variants: • Vivel Di Wills Sheer Radiance is enriched with Olive Oil, to provide skin lustre to make it radiant. • Vivel Di Wills Sheer Crème is enriched with Shea Butter, to moisturize skin to

make it soft and supple. The Vivel range is available in four variants • Vivel Young Glow is enriched with Vitamin E and Fruit Infusions which help in providing youthful glow to the skin. • Vivel Satin Soft is enriched with Vitamin E and Aloe Vera which help the skin feel beautifully soft. • Vivel Sandal Sparkle is enriched with Sandalwood Oil and Active Clay which helps in providing clear skin. • Vivel Ayurveda Essence is enriched with multiple Ayurvedic Ingredients which help protect skin from germs and harsh environment, keeping it healthy and beautiful. Although the market trend shows that these ITC brands are no competition to Pears right now. But if ITC improves its distribution network then these brands can be a threat to HUL. Fairness creams FAIR ONE 'Fairone Fairness Cream' was launched jointly by Elder Pharmaceuticals and Shahnaz Husain. Elder Pharmaceuticals Ltd and Shahnaz Husain, herbal beauty specialist, had entered into an agreement to launch four skin care products during 2006-2007.

Elder undertakes the manufacturing and marketing of the products, while the conception and composition is done by Husain. Elder Pharmaceuticals Ltd. is one of the leading companies in India in the skin care sector. The company is a major manufacturer of aloe vera-based skin care products.

IndicationsFAIR ONE cream has a unique blend of herbal ingredients like saffron, honey, apricot oil, rose, cucumber and lemon distillate. The formulation protects the skin from the darkening effects of the sun. Honey, a natural moisturizer, nourishes the skin, keeping it smooth and supple. FAIR ONE cream helps to make your skin look fairer and brighter. Method of Apply to face, neck and Use arms twice daily. See results in One fortnight.

FAIR AND HANDSOME A fair complexion has always been associated with success and popularity. Men and women alike desire fairness, it is believed to be the key to a successful life. Well for women the market is loaded with fairness cream but for men there are very few creams. Emami Fair and Handsome is one such cream for men. Emami herbalists and dermatologists from India along with Activor Corp USA, has created “Fair & Handsome” a fairness cream for Men with a breakthrough Five Power Fairness System to make skin fair and handsome in 4 weeks.

Emami - Fairness Cream First time ever fairness cream for Men for men Fair and Handsome Emami in collaboration with Activor Corp, USA has created a unique fairness cream for men with a breakthrough Peptide complex patented in the USA. This wonder molecule peptide works on the collagen structure of male skin and dramatically improves skin texture and fairness in just 4 weeks. Its pleasant cooling gives an aftershave effect. How does it work?

Key ingredients

Active ingredients regulate production of melanin.

============= Peptide, Liquorice, Vetiver & Aloe vera.

Natural sunscreen protects against UV rays. Peptide in combination with Vetiver and Rose Water makes skin fair and fresh with a pleasant cooling sensation.

What it does:
• • • •

Improves fairness in 4 weeks. Protects against sun's UV rays. Moisturises skin even after shaving. Relieves stress and fatigue signs.

The efficiency of this cream has been dermatologically tested on Indian male skin 73% were found to be fairer 78% found it to be an effective after shave-moisturiser 75% found effective oil-control.

GARNIER Garnier is a division of L'Oréal that produces hair care products, including the Fructis line, and most recently, skin care products under the name, Nutritioniste, that are sold around the world. One of their key ingredients is a fruit concentrate used in all their products. It is a combination of fruit acids, vitamin B3 and B6, fructose and glucose. Fairness + dark spots prevention daily moisturiser

Lightens skin Prevents dark spots from reappearing.

Anti-marks + fairness concentrate

Enhances the skin's overall fairness Reduces the number & intensity of dark spots.

FAIREVER Natural Fairever was initially launched in A.P. in 1998, following that a national launch was made in 1999. Fairever is the brand of CavinKare Pvt Ltd(CKPL). This cream has a blend of saffron and milk. It claims to work from within to provide a distinctly fairer, glowing complexion much like that of Kashmiri beauties in just 4 weeks Triple sunscreens also retain your fairness and reduce the harmful effects of UV rays. It comes in a pack of 50g and 100g. The 50g pack costs Rs.55. The Fairever claims to have consumers as a woman who is the young and contemporary woman of today. She has strong values and believes in using a natural product that will help bring out her natural beauty from within. Fairever Fairness Cream Use twice every day. Fairever Fairness Cream with Saffron, Milk and Fruit Vitalisers

TALCUM POWDER CINTHOL Cinthol talc is a product of GODREJ Consumer Products Ltd (GCPL). GCPL identifies Cinthol as its power brand. GCPL has launched new Cinthol range of soap, talc and deodorant with Bollywood actor Hrithik Roshan as its new brand ambassador. Cinthol offers a range of soaps, talc and deo sprays in three exciting fragrance - Classic, Cologne and Sport - in a new packaging. Cinthol has come out with a combi pack for this summer. It is in pack of 300g + 100g for M.R.P Rs.80.

SPINZ Spinz talc is CavinKare Pvt Ltd(CKPL) brand. Spinz Talc is packed in sizes of 20 g, 50 g, 100 g and 400 g and comes in three fragrances: • Exotic • Exchante • Sandal The Spinz talc’s target are girls of around 18 to 26 years old from SEC A and B. Easy-going and fun-loving, who loves to have a lot of friends with whom she spends time.

SUN CARE LOTUS Lotus sun care range is by Lotus Herbals. Lotus suncare has a wide range of variants available for all skin types. Their SPF(Sun Protection Formula) ranges from 15 to 60. This caters to the needs of all kind of people who need different type of SPF according to their exposure to the sun. Lotus is more priced than Lakme but gives a good margin to the retailers. This brand specializes in sunscreen manufacturing and it is very old in this field, due to this it has gained trust of people. It offers a wide range of facewash, creams and facepacks which provides protection against sun. The most sellind variant of Lotus are as follows:-

Block Cream (SPF30) (Suits all skin types)

This unique sun block cream has been specially made for Indian Summer. It provides complete protection against harmful UVA & UVB rays of sun, reducing chances of skin tanning and ageing. Directions for use: Apply liberally and evenly on face, neck and any other exposed part of the body, atleast 30 minutes before stepping out in the sun. The cream will not get wiped off with perspiration / water. Avoid contact with eyes. Active Ingredients: Octyle Methoxy Cinnamate Z-Cote, Titanium Dioxide and Benzophenone-3.

Safe Sun - Daily Sun Block (SPF 40) (Suits all skin types)

3-in-1 Matte Look Daily Sun Block Birch Extract SPF 40 Sun Protection Skin Lightening Mattifying Incredibly Light, Fast Absorbing, Non-Shiny, Non-Greasy For all skin types. Daily sun block - water proof, Sweat proof Safe Sun 3-in 1 Daily Sunblock is a revolutionary sun protection formulation which combines BroadSpectrum UVA / UVB protection with skin lightening ingredients to give a uniform matte finish to the skin. Its fast absorption and nongreasy formula ensures a shine-free, light & clean feel. Contains herbals extracts of

Birch: Mattifying Mallow: Sun Protection Hops: Skin Lightening Directions for use: ============== Apply safe Sun 3-in 1 Daily Sun Block Cream liberally and evenly on face and exposed parts of the body (neck, arms, legs, etc.,) before exposure to Sun. Re-apply frequently. Caution ====== For external use only. In a rare case, if rash or irritation occurs, discontinue use.

PREMIUM CREAMS OLAY Olay is a Procter & Gamble brand. It was acquired by Procter & Gamble in 1985. P&G greatly expanded Olay both in line up and in countries. Olay became one of P&G’s Billion dollar brands in 2003. In August 2007, Olay was launched in India. Olay has extended its heritage as a moisturizer to stay looking young, to formally creating the “anti-aging” category in mass stores with the launch of Total Effects in India.

DATA ANALYSIS

SKIN CREAMS

FAIR & LOVELY Fair & lovely is the most successful fairness cream in the country. Based on a revolutionary breakthrough in skin lightening technology, Fair & Lovely is in market since 1978. The brand is very famous amongst the consumers because of the trust that they have developed with the company. People are satisfied with the quality and price. It is the mass product. The most selling variant of the FAL is multi-vitamin. The competitors of FAL and the margins provided by them are as follows:COMPETITORS Fair One Fair & Handsome Garnier MARGINS 20% 20% 15%

Although the sale of these brands are far behind FAL but these creams are a direct competition.

VASELINE

Vaseline Aloe fresh is the variant for the summers and it is doing very well. It does not have any direct competition because there is no other cream in the market for the summers. The other variants are Vaseline Body lotion and Vaseline Petroleum jelly these are the winter creams and there sale in summers is slightly low. The competitors of Vaseline and their margins are as follows:COMPETITORS Emami (boroplus lotion) Nivea Ayur Garnier MARGINS 20% 20% 18% 15%

The projection of market share of the skin creams in Delhi is as follows:MARKET SHARE OF HUL AND OTHER COMPANIES IN THE SKIN CREAMS SEGMENT:-

OTHERS 45%

HUL 42%

HUL GARNIER EMAMI OTHERS

EMAMI 3%

GARNIER 10%

The finding of the research shows that the estimated market share of HUL is 42%. The share of HUL skin category creams in this 42% share is as follows:PBL 3% VPJ 2% PCC 8% VBL 10% FAL PCC VPJ PBL VBL FAL 77%

Here we can see that the major portion is covered by Fair & Lovely. It covers 77%. Vaseline body lotion has a share of 10%. Pond’s cold cream is 8% Pond’s body lotion is 3%.

TALCUM POWDER POND’S Pond’s came into being in 1947. Pond’s talc is feminine talc. It is perfume talc and caters to the needs of the women. It has got a very strong hold in the market. The consumers prefer to buy at least two type of talc for their family, pond’s talc form the part of the every basket. Its competitors and their margins are as follows:COMPETITORS Spinz Wipro (santoor & enchanteur) Nivea Cinthol 25% 20% 14% MARGINS

There are other competitors as well like Premiun and Emami which comes in the combi pack of 400g + 400g. Cinthol comes in the combi pack of 300g +100g. These kinds of schemes affect the purchase pattern of people who are not brand loyal and are looking for some free gifts or scheme. A person from lower middle section of the society prefers to buy these talcs because of the value of money that they offer. Johnson & Johnson baby talc is not the

direct competitor of Pond’s but it is also a competition because women buy this talc because of the softness and fresh fragrance that it provides. The market share of these talc are as follows:-

OTHERS 18% EMAMI 2% J&J 20% HUL 45% SPINZ 2% SANTOOR 1%

HUL SPINZ SANTOOR CINTHOL J&J EMAMI OTHERS

CINTHOL 12%

The share of variants of Pond’s in this 45% is as follows:-

POC 11%

PST 3% DFT 40% DFT DFM POC PST

DFM 46%

The largest selling variant of Pond’s is Dream Flower Magic which is 46%, next comes Dream Flower Talc which is 40%. Pond’s Oil Control and Sandal Talc are 11% and 3% respectively.

PEARS ITC has launched Fiama Di Wills in competition of Pears. Pears comes in 3 variants Pears Amber, Oil Control, Germ Shield. The largest selling variant is Amber. The consumer pattern shows that those who are loyal to this brand do not switch it easily. The brand loyalty of this product is more than any other. The other soaps which are is competition of Pears are Dettol with moisturizers, Johnson & Johnson, Fiama Di Wills. Fiama Di Wills is a new product and is being liked by people. It is lagging behind in its distribution network as there is always stock out of this product. In

the long run it can provide good competition to HUL. The present market share of pears and it competitors are as follows:-

J&J 25% PEARS FIAMA DETTOL 16% PEARS 54% FIAMA 5% DETTOL J&J

LAKME SUN CARE

The major competitor of Lakme Suncare range is Lotus herbals. Lotus comes in lots of variants which cater to the needs of all types of Indian skin and texture. The SPF (Sun Protection Formula) in Lakme is 15,20 and 30. but in Lotus it ranges from 15 to 60. Although if we compare the price, Lotus is more expensive than Lakme, but still people who are satisfied with this brand do not care about its high price. The market share of Lakme and Lotus is very close but still Lotus is ahead of Lakme. The competitors and their margins are as follows:-

COMPETITORS Lotus Garnier Shahnaz Husain

MARGIN 35% 15% 25%

The market share of Lakme and its competitors is as follows:-

GARNIER 12%

OTHERS 14%

LAKME 36%

LAKME LOTUS GARNIER OTHERS

LOTUS 38%

POND’S WHITE BEAUTY AND POND’S AGE MIRACLE Pond’s white beauty and Pond’s age miracle are in their initial stage of launch. These are premium brands, that is , they are high priced and their target customers are upper middle class and upper class. These 2 products face competition from premium creams like Olay, Loreal, and VLCC. The market of these creams is small

but slowly these creams are doing well are doing well. People are liking the quality of Pond’s and also the price that it is offering. The competition in this segment although is tough. This is because the consumer of these premium creams is very loyal to their brand and they do switch creams easily. They are not attracted by the schemes. Quality and brand name alone can attract their attention. A customer who is using Loreal will not easily switch Pond’s. The estimated market share of Pond’s and its competitors is as follows:-

Garneir 8%

Others 12%

Pond's 31%

Pond's Olay Loreal

Loreal 17% Olay 32%

Garneir Others

CONCLUSIONS & FINDINGS

After studying the project I would like to conclude that  Company should focus on customer satisfaction at every levels of the business.  Rate can be reduced with the attractive proposals for the middle class family.  Relationship manager should be given on the customer demand.  Company should use the tool of advertising for marketing the brand and the product.  The company shows the positive trend in growth but it can be increased more if it focuses on building the lower & middle class family

SUGGESTIONS

• The company can launch a new variant of Pond’s, which could be Pond’s Fairness Body Lotion. This will cater to the fairness need of whole body and not just hands and face. The target customer of this variant can be the youth who are more boldly dressed and want the whole texture of the skin to be same. Most of the time the face looks fairer than the hands and the legs. • To launch a display scheme for Pears which can counter the competition from Fiama Di Wills that it may face in the future. HUL can buy windows from the retailers for the display of Pears soap and face wash. • The youth of today is not much into the consumption of fairness cream because they think it to be harmful for the skin and they are very conscious about the health of their skin. To cater to this segment of population which is very huge, Fair & Lovely can initiate activities which makes the youth aware about the qualities of the brand and to make them understand that the cream is not harmful for their skin. • The company can emphasize on the other qualities of Pond’s talc and not just as perfume talc. It can highlight its medicinal value which is of very necessary for the summers. • The can launch a new variant of Pond’s talc with new fresh fragrance. This will be for the people who like the brand due to the good quality that it provides but are bored of the fragrance that has been provided for so long. This will

counter the competition and satisfy the target customers. • Lakme can come up with sunscreen which has more SPF so that it can counter the competition that it faces from its biggest competitor Lotus. As of now Lakme come in SPF 15 to SPF 30. It can also come up with sunscreen with higher SPF. Lotus ranges from SPF 15 to SPF 60. This way Lakme can cater to the needs of people who are more exposed in the sun and need more protection against it. • Pond’s White Beauty and Pond’s Age Miracle are in their initial stage so these brands need to communicate more to their customers. The company can promote activities in the mall where they are sold the most as these are premium brands and their target customer comes in the malls only. This will help in brand communication of these brands. • The company should emphasize more on mass retail than the wholesale as the whole sale is very price sensitive. The ideal ratio of wholesale is to retail is 30:70. The universal ratio is 40:70 and the HUL ratio is 50:50.

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