A

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

Submitted By:

Submitted To :

Saddam Hussain

Dr. Manish Jain

MBA 3rd Semester

HOD

ARYA INSTITUTE OF ENGINEERING & TECHNOLOGY
JAIPUR

PREFACE
Hindustan

Unilever Limited (formerly Hindustan Lever Limited) is India’s largest Fast

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

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

Hindustan Unilever Limited (HUL), a subsidiary of Unilever, is a fast moving consumer
goods (FMCG) company based in India. The company focuses on efficient delivery to
consumers with an improved supply chain, brand building initiatives and innovation, which
has helped the company to sustain its leadership position in the overall FMCG category in
India.

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

FMCG industry. A

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

Acknowledgement

2

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

SADDAM HUSSAIN
MBA IIIrd SEM.

EXECUTIVE SUMMARY

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which make up about a third of Unilever's worldwide sales. Hindustan Unilever Limited (HUL). Effective July 19. The world's second-largest consumer products maker has relied on accelerating shipments of Surf Excel detergent in India to make up for sluggish sales in Europe. It is generally acknowledged to be one of India's best-run businesses. which has helped the company to sustain its leadership position in the overall FMCG category in India. is a fast moving consumer goods (FMCG) company based in India. Hindustan Vanaspati Manufacturing Company. The company’s history dates back to 1931 when Unilever set up its first Indian subsidiary.1 FMCG is able to share with their market insights based upon unparalleled breath of consumer goods experience. and is also one of the country’s top five exporters.Now Cincinnatibased Procter & Gamble is stocking Indian stores with Olay skin. 2007 the company has changed the name to Hindustan Unilever Limited. In addition to FMCG products it is the country's biggest exporter of tea. Asia and Africa. will see their share of the company's growth fall to 2 percent in 2010 from 3.3 percent in 2007. and ITC Ltd. These three companies merged to form Hindustan Lever Limited in November 1956. Unilever. according 4 .The Hindustan Unilever Ltd’s(HUL) Inc has taken the opportunity to offer us a broader view of FMCG category. a subsidiary of Unilever.care products after nearly halving the local prices of Ariel and Tide detergents in 2004. one of the most efficient in the world. brand building initiatives and innovation. including several not occupied by Unilever in other markets such as preserves and bakery products. It is the country's biggest consumer goods company. prior to restructuring. which sells soap to more than 500 million Indians. Hindustan Unilever is Unilever's main operating business in India. although performance slowed dramatically between 2000 and 2004. The company focuses on efficient delivery to consumers with an improved supply chain. and far and away the leading advertiser. followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). HUL inhabits virtually every sector of the consumer goods market. The Hindustan Unilever Ltd (HLL) is India’s no. may see global revenue growth slow in 2010 as Procter & Gamble Co. step up marketing in Asia's thirdbiggest economy. Hindustan Unilever Ltd (HUL) has grown from strength to strength with new technologies being introduced to make the HLL consumer goods business.

to Brussels-based brokerage Petercam SA.2 percent in North and South America. Revenue from the two continents rose 11. Unilever's overall sales growth will slow to 4.9 percent growth in Europe and 4. helping offset 1.9 percent in 2010 from an estimated 5. according to the median of five analysts in a Bloomberg survey.3 percent in 2007. CONTENTS 5 .4 percent in the first nine months of last year.

 Introduction to the Industry  Introduction to the organization  Research Methodology o Title of the study o Duration of the project o Objective of the study o Types of Research o Sample size & Techniques o Scope of study o Limitation of Study  Facts and Findings  Data Analysis & Interpretation  SWOT Analysis  Recommendation & Suggestions  Questionnaire  Bibliography 6 .

the industry grew 5.Vs. packaged food products. etc. shampoos. the Rs. FMCG products are those that get replaced within a year. paper products. These are replaced more frequently than other electronic products. and plastic goods. etc. According to the AC Nielsen India study. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries. Most of the product categories like jams. have low per capita consumption as well as low penetration level. Indian FMCG Sector The Indian FMCG sector is the fourth largest in the economy and has a market size of US$13. It has been predicted that the FMCG market will reach to US$ 33. T. 7 . bulbs. cosmetics. Music Systems. batteries. tissue paper. tooth cleaning products. in India. but the potential for growth is huge. and relatively low cost are known as Fast Moving Consumer Goods (FMCG). and give brand makers the opportunity to convert them to branded products. consumer electronics. FMCG in India has a strong and competitive MNC presence across the entire value chain. FMCG may also include pharmaceuticals. skin care. and Laptops. soap. shaving products and detergents. White goods in FMCG refer to household electronic items such as Refrigerators. and relatively low cost are known as Fast Moving Consumer Goods (FMCG). as well as other non-durables such as glassware.1 billion. toothpaste.3% in value between 2006 and 2007. A subset of Products which have a quick turnover.4 billion in 2015 from US $ billion 11.INTRODUCTION TO THE INDUSTRY Products which have a quick turnover.000-crore FMCG segment was one of the fast growing industries in India. In 2007.6 in 2006. as well as intense competition between the organised and unorganised segments are the characteristics of this sector. 48. Well-established distribution networks. and chocolate bars. The middle class and the rural segments of the Indian population are the most promising market for FMCG. soft drinks.

GCMMF (AMUL) 5. and rising per capita income. increased literacy levels. 62 of the top 100 brands are owned by MNCs. Hindustan Unilever Ltd. i. Fifteen companies own these 62 brands. aggregating Rs. inclusive of Lux. Vicks. According to the study conducted by AC Nielsen. Nestlé India 4. Between them. Cigarettes account for 17% of the top 100 FMCG sales. Britannia takes the fifth place.The Indian Economy is surging ahead by leaps and bounds. These are figures the soft drink and cigarette companies have always shied away from revealing.799 crore or 54% of the personal care category. Britannia Industries 9. and the balance by Indian companies. they account for 35 of the top 100 brands. 3.. 2. Asian Paints (India) 7. Dabur India 6. Marico Industries The companies mentioned are the leaders in their respective sectors. followed by Colgate (6). and just below the personal care category. cigarettes. and soft drinks are the three biggest categories in FMCG. ITC alone accounts for 60% volume market share and 70% by value of all filter cigarettes in India. 8 . 21. Fair and Lovely. Pepsi is at number three followed by Thums Up. keeping pace with rapid urbanization. and 27 of these are owned by Hindustan Lever. Lifebuoy. There are 11 HLL brands in the 21. Procter & Gamble Hygiene and Health Care 10. Cadbury India 8. ITC (Indian Tobacco Company) 3. Coca-Cola (8) and Parle (9). Personal care. The personal care category has the largest number of brands. The big firms are growing bigger and small-time companies are catching up as well. Nirma (7). and Ponds.e. THE TOP 10 COMPANIES IN FMCG SECTOR 1.

ranked Asian Paints among the 200 Best Small Companies in the World . Far East. Nestle and Amul slug it out in the powders segment. Goodknight from Godrej. Asian Paints is enjoying a formidable presence in the Indian sub-continent. HLL's Clinic and Sunsilk make it to the top 100. Hajmola and Real. Caribbean. dominates the biscuits category and has launched a series of products at various prices. Outlook 9 .637 crore. butter.6 billion (around USD 513 million). cheese. aggregating Rs. although P&G's Head and Shoulders and Pantene are also trying hard to be positioned on top. followed by Reckitt's Mortein at Rs 149 crore. and so on. Clinic is nearly double the size of Sunsilk. Africa and Europe.15. and others. Asian Paints is India's largest paint company. This category seems to have faster development than the stagnating personal care category. 5 Star. Forbes Global magazine. and Gems.6 billion (USD 380 Million) Marico is a leading Indian group in consumer products and services in the Global Beauty and Wellness space. In the shampoo category. Middle East. has a good presence in the food category with its ice-creams. USA. South Pacific. Eclairs. India's largest foods company. milk. Godrej. with a turnover of Rs. US$ 420 million) in 2006-2007. Southeast Asia. Vatika. With a turnover of Rs. In the household care category (like mosquito repellents). 19 billion (approx. Its popular brands include Cadbury's Dairy Milk. chapattis by HLL. 4. Dabur has brands like Dabur Amla. Dabur Chyawanprash. Dabur is among the top five FMCG companies in India and is a herbal specialist.22. This category has 18 major brands. Amul. ITC. The Rs. Britannia also ranks in the top 100 FMCG brands.The foods category in FMCG is gaining popularity with a swing of launches by HLL. Godrej and Reckitt are two players. Cadbury India is the market leader in the chocolate confectionery market with a 70% market share and is ranked number two in the total food drinks market. ready to eat rice by HLL and pizzas by both GCMMF and Godrej Pillsbury. curd. The food category has also seen innovations like softies in ice creams. is worth above Rs 217 crore.

Indian consumers were using non-branded apparel.000 Stockists  Total Coverage 6. promotion and innovation of products.000 suppliers & associates  75 Manufacturing Locations  45 C&FAs. which can drive many sectors.200 managers  2. Again the demand or prospect could be increased further if these companies can change the consumer's mindset and offer new generation products.000 employees  1. clothes of different brands are available and the same consumers are willing to pay more for branded quality clothes.3 Mln Outlets  Direct Coverage 1 Mln outlets Population of INDIA: 1027 Mln  5. It's the quality. INTRODUCTION TO THE ORGANIZATION Hindustan Unilever – A 75 Year Commitment  15. but today.There is a huge growth potential for all the FMCG companies as the per capita consumption of almost all products in the country is amongst the lowest in the world. 4. Earlier.545 Towns 10 .

0 Mln outlets HISTORY OF HINDUSTAN UNILEVER LTD  It was in the summer of 1888 that Unilever of England first marketed Sunlight soap in India. 2. formed a 50:50 joint venture. These three companies merged to form HUL in November 1956.5 Mln outlets  6. In a historic step. This was followed by brands like Pears and Vim. Hindustan Vanaspati Manufacturing Company. Lipton (1972) and Pond’s (1986). Two years later. Lakme Limited sold its brands to HUL and divested its 50 per cent stake in the joint venture to the FMCG giant. Unilever set up its first Indian subsidiary.38.  In 1993. Lakme Lever Limited. which markets Huggies diapers and Kotex sanitary pads.  A number of prominent companies came into the HUL fold as result of Unilever’s international acquisitions. 11 . Nepal Lever Limited (NLL).  HUL has also set up a subsidiary in Nepal. Kimberly-Clark Lever Ltd.  Subsequently in 1998.  In 1931. HUL picked up 74 per cent of the equity of Modern Foods from the Indian government. Vanaspati was launched in 1918 and Dalda came to the market in 1937. Lakme Limited. Tata Oil Mills Company (TOMCO) merged with HUL.000 Villages  5. followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). These included Brooke Bond (1984). HUL and yet another Tata company.  HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994. and its factory represents the largest manufacturing investment in the Himalayan kingdom.

000 people. including over 1. formerly known as Hindustan Lever Limited. It is one of the earliest MNCs to have entered India 12 . In 2002. HUL acquired the government s remaining stake in Modern Foods.  FMCG major Hindustan Unilever Limited (HUL). employs 36.350 managers.

is to "add vitality to life.10. It is a mission 13 .organizational structure Managing Direc tor General Manager Vice President Marketing Manufacturing Sales Finance Distribution PRESENT STATUS Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods company. including over 1.000 employees. look good and get more out of life.300 managers. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of Rs.000crore. touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. HUL is also one of the country's largest exporters." HUL meets everyday needs for nutrition. hygiene. it has been recognised as a Golden Super Star Trading House by the Government of India. and personal care with brands that help people feel good. The mission that inspires HUL's over 15.

“Price cut or hike is not a long-term growth strategy. Pepsodent. branded staples. HUL has traditionally been a company. many with post-doctoral experience acquired in the US and Europe.3 million retail outlets reaching the entire urban population . and now has facilities in Mumbai and Bangalore. which holds 51. tea. HUL's brands . Brooke Bond.HUL shares with its parent company. 14 . now is focused on product innovation.like Lifebuoy. Surf Excel. personal products. covering 6. new consumer and retail trends and aggressive marketing and promotions.000 individual shareholders and financial institutions.” insists Sudhanshu Vats. Close-up. Unilever.000 redistribution stockiest. The Hindustan Unilever Research Centre (HLRC) was set up in 1958. detergents. HUL's distribution network. Wheel. HUL’S NEW GROWTH STRATEGY After having fought a bitter price battle for market share with its rivals. coffee.55% of the equity. Kissan. comprising about 4. Kwality Wall's – are household names across the country and span many categories . is now working on a new growth strategy for its laundry business. Rin. Knorr-Annapurna.000 suppliers and associates. “Our strategy for growth. Hindustan Unilever Ltd (HUL). Lux.This comes even as Unilever is scouting for a potential buyer for its laundry business in the US. Fair & Lovely. HLRC and the Global Technology Centres in India have over 200 highly qualified scientists and technologists.soaps.” he said. Pricing. home care. Clinic. is now passe.and about 250 million rural consumer. Indian subsidiary of the Anglo-Dutch consumer goods company Unilever Plc. The operations involve over 2. Lakme. Sunsilk. The rest of the shareholding is distributed among 380. category head. Pond's. which incorporates latest technology in all its operations. in fact. They are manufactured over 40 factories across India. ice cream and culinary products.

15 .6% share. In 2006. HUL doesn’t report its laundry revenues separately but puts them under the soaps and detergent category. up to a 7.” “We have done key innovations across the product portfolio and it is working for us. However. according to Vats contributes around 50% of HUL’s laundry segment revenues. this time. the laundry business is witnessing a surge in demand from cities and HUL is focusing on Tier I and II cities to tap that demand. saw its market share dip by 1. Nirma Ltd. the industry is stabilizing.” HUL’s market share in the laundry segment grew to around 37.4% over 2005. HUL’s soaps and detergents segment contributed around Rs5. a value brand that.908 crore in 2006 and rose 8. however. an analyst at Macquarie Securities here.7% percentage points to 13.596 crore to the company’s total sales of Rs12. According to ACNielsen. the increase was not at the expense of price war with its multinational rival Procter & Gamble Co.” says Vats. The recent price war between companies led to erosion in their profitability but now.8% in the quarter ended June from 35.” says Unmesh Sharma. the laundry industry in India was worth Rs7. P&G also gained 0.5%. “We successfully migrated from Rin Supreme to Surf Excel and Wheel Smart Srimati —which was rolled out in 2006—is also on the right track. the Ahmedabad-based manufacturer. increased its market share by 2 percentage points in the same period. “Laundry has been an attractive segment in the past and is likely to keep growing in the near future.Wheel.103 crore.5 percentage points. with a total share of about 18%. According to Vats.5% in the same period last year.HUL says it is quite upbeat about the segment and says the laundry segment is one of its “key growth areas. according the market research firm ACNielsen.

Also. it is too early to say what result their new strategies. “Trends suggest that the usage of detergents has gone up as a result. people want to use better and branded products. 16 . with premium quality of clothes. “Still.” Still. seem right. “Some of HUL’s recent moves.” says Vats.“Consumers today are buying more clothes. analysts remain cautious.” says Macquarie’s Sharma. such as promotional campaigns and advertising.

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

BRANDS

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

Research Methodology

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

Duration of the Project
45 Days

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

OBJECTIVE OF THE STUDY

 To identify the marketing strategies and policies of Hindustan Unilever Limited
 To analyse the influence of rival company’s strategies on the performance of
Hindustan Unilever Limited
 To analyse the various strategies adopted by the company to gain competitive
advantage

18

Type of Research
Research was of Exploratory and Descriptive Nature.

Exploratory Research: Exploratory research is a type of research conducted for a
problem that has not been clearly defined.Exploratory research helps determine the
best research design,data collection method and selection of subjects.

Descriptive Nature: Descriptive research also known as statistical research
describes data and characteristics about the population or phenomenon being
studied.however

it

does

not

answer

questions

about

characterstices occurred which is done under analytic research.

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

Data Collection
19

how/when/why

the

Limitations of the Study  The training was for a very short period of time. .Data was collected from both primary as well as secondary sources:  Primary Data Collection: # Sample questionnaire was prepared and the same was asked to fill in hands # Personal interviews were conducted.  Secondary Data Collection: # Secondary data was collected by the information given .  Errors may occur during data collection. The study then goes on to evaluate and analyze the findings so as to present a clear picture of trends in the Insurance sector.e. 20 .  Errors may occur during analysis of data. Thus it was difficult to analyze the market thoroughly and come to any conclusion in such a short span of time.websites Scope of the Study A big boom has been witnessed in FMCG Industry in recent times. The study deals with Hindustan Unilever Co.  The market study was to a limited area.  Some samples i. Ltd.magazines . A large number of new players have entered the market and are vying to gain market share in this improving market. Ltd.through the material provided by Hindustan Unilever Co. the respondents were reluctant to answer. rapidly in focus and the various segments that it caters to.

In view of the demand – supply gap.T was the highest ever in India.5 million MT in the currently year with fmcg products in which the company has a dominant presence contributing over 50%. The company also produces oil meal.000 crore.FACTS & FINDINGS The primary business of the company is for FMCG use. CURRENT MARKET SCENARIO AND TRENDS  The category usage is universal and the market is quite dynamic and complex. frequent change of the oil species and looking for healthy option 21 . has given new challenges and opportunities to the marketers  Increasing influence of dieticians and doctors in the category causing lower usage. food product from soya & value added products from downstream processing of commodities. The size of Indian FMCG industry is estimated around 85. The Hindustan Unilever’s product 2010 of 9 million M.  This market has been witnessing to several changes lately. about 35-40% of the domestic FMCG consumption is met by imports. with this accounting of over 95% of the imported volume. The domestic FMCG consumption has been steadily growing & is estimated to be over 12. which includes both : CONSUMER RELATED • Increase in disposable income & purchase power  Changing societal norms & healthy & quality factor in all the product segments  Rising desire for convenience & ‘I want more’ attitude MARKET RELATED • Growing power of modern retail trade.

• Hindustan Unilever an established & key player in the Indian FMCG market. wants to enhance its footprints in the growing modern retail industry DATA ANALYSIS PEST ANALYSIS P: since the budget range is decontrolled. no political effects are envisaged. 22 . E: 1) increasing per capita income resulting in higher Disposable income 2) Growing middle class/urban population – increase in Demand 3) Low cost of production – better penetration S: 1) Per capita consumption expected to increase – fashion 2) Increasing gifts culture – increase in demand T: Will have to reinforce technology to international levels Once India is a “fully free” economy.

Lifebuoy. Pond’s and Vaseline  Hair care: Sunsilk and Clinic  Oral care: Pepsodent and Close up  Deodorants: Axe and Rexona  Colour cosmetics: Lakme  Ayurvedic: Ayush  Tea: Brooke Bond and Lipton 23 . Dove. Hamam. Hindustan Unilever Ltd(HUL) offer such product.FIVE P’S OF MARKETING Product Satisfaction suffices. delivering to her door step additional benefits which she would never have imagined possible. But delight dazzles the average company will compete for customer by conforming to her expectation consistently. Liril. But the winner will surpass them by constantly exceeding her expectation. Rin and Wheel  Skin care: Fair & Lovely. Pears and Rexona  Laundry items: Surf Excel. The wide variety products offered by the company include: The company’s popular product’s include:  Bathing soaps: Lux. Breeze.

The fundamental axiom of Indian consumer market is this: You can set up a state-of –the-art manufacturing facility. but the end of it all. Marketers and finance manager need a new term to evaluate their business: Distribution Equity. Pricing Make no mistake. and then progressively moving through them. Why does the company need distribution equity more anything in India? With technology and competitive pressure slash in it is becoming increasing difficult for marketers to retain a 24 . So every customer segment has different price expectation from the product. distribution equity is much together to erode. Physical Distribution – “Place” BRAND ISN’T THE ONLY ANY MORE. The cardinal task before the Indian market is managing is to shoehorn its product on retail shelves. hire the hottest strategies on the block. swamp prime television with best Ads. Annapurna and Knorr  Ice cream: Kwality Wall’s . The strategy used by Hindustan Unilever Ltd(HUL) is for matching the value that customer pays to buy the product with the expectation they have about what the production is worth to them. Coffee: Bru  Foods: Kissan. Therefore maximizing the returns involves identifying right price level for each segment. Hindustan Unilever Ltd(HUL) has launched various products which cater to all customer segments. but once built. Second P of marketing is not another name for blindly lowering prices and relying on this strategy alone to increase sales dramatically. you would be know of selling your products. Buyers are paying for distribution equity not brand equity and market shares. It takes much more time and effort to build.

This helps in maintaining consumption in summer when sales usually drops due to the fact that the heal effects product quality and thereby off takes. The company is looking to reduce this parity level.000 redistribution stockists. Hindustan Unilever Ltd(HUL) marketing costs. covering 6. At Hindustan Unilever Ltd(HUL). language. HUL's distribution network. comprising about 4.unique product differentiation for ling period. This increase in distribution is going to be accompanied by reduction in channel costs. a distribution expansion would itself being incremental volume. And your brand equity isn’t going to help when it comes to tackling these issues. the prospective customers can have access to the product.television has already primed and population for consumption. Hindustan Unilever Ltd(HUL) is also attempting to improve the distribution quality. it has installed visi colors at several outlets. Own distribution network consist of clearing and forwarding (C&F) agents & distribution stockiest. 25 . they believe that selling FMCG is it like selling soft drinks. transport and communication network. In a product and price parity situation. life style. To address the issue of product stability. But getting their means managing wildly different terrains-climate.000 suppliers and associates. and about 250 million rural consumers. value system. This network of distribution can either contact wholesalers and which in turn retailers or the distributors can contact to the retailers directly. Looking at the low penetration of few products.3 million retail outlets reaching the entire urban population. and the marketer who can get to the to the consumer ahead of competition will give a hard – to – overtake lead. Beside use of improved logistics. Once the stock product reaches retailers. at 18% of total costs. Hindustan Unilever Ltd(HUL) distributes the product in the manner stated above. Hindustan Unilever Ltd(HUL) distribution network has expanded. is much higher than Procter & Gamble Co. reaches more than a million retailers. the brand that sells more is the one that reaches the highest number of customers. India – The operations involve over 2. The other reason is arch rival Procter & Gamble Co.

Thereafter it was the job of the advertising to communicate customer the wonderful feeling that he could experience by re-discoursing the careful. 30 catteries in Mumbai have been selected. In cinemas. Effective advertising is rarely hectoring or loudly explicit…. unself conscious. It has also launched Pureit. grab her acceptance and then extract retention competing with thousands of other units of communication trying to do the same. 26 . Unilever Ltd(HUL) Naturally. Beside the company website (i. ad agency contract has created communication for cinemas and even ATM machines for the brand.Promotion If an advertisement is to communicate effectively. the management plans to tap this new channel of marketing. the receiver must at least half want it to. The strategic response address the emotional appeal of the band to the child within the adult. Something familiar is planned for phone-book as well. that produced just the value vacuum that Hindustan was looking to fill. Ad since any discussion today would be incomplete without mention ‘e’ word. Finding showed that the adults felt too conscious to be seen consuming a product actually meant for children. and be prepared too take step toward the sender. grab her attention evoke her comprehension. Ad spend in 2000 was about 14% of sales and the management said that plans to maintain as spend at this level in the current year also. pleasure – seeking child within himself – a graft these feeling onto the Ad campaign like “hasso to khul k hasso for close up”.e. a successful campaign has a stronger element of the unexpected a quality that good advertising shares with much worthwhile literature. “cream bathing bar for dove soap” and daag ache hai for surf excel” have been sure shot winner with the audience. Hindustan Unilever(Ltd)has a message on-screen just before the lights are dimmed to give them a chance to get their product There will also be after dinner sampling in restaurants – to begin with. As well as outdoor and radio ads. More often than not. It often both attracts and generates arm feelings. communication must first ensure exposure. To penetrate into the inner recesses of her memory. All ICICI’ s ATM a message flashes on the screen as soon as customer insert his ATM card. a home water purifier which supplies drinking water without boiling/need of electricity .

as www. As a variety of competitive claims assails her senses. researching and improving the newer products that haven’t taken off. etc…. Today’s consumer demanding “more for less”. It is more efficient to market one successful concept to one large group of people than 50 product or service ideas to 50 separate group… repositioning is a must when customer attitude have changed and product have strayed away from the consumer’s long standing perception of them… Hindustan Unilever(Ltd) is an anchor in sea of consumer products. as well as expand the market.unilever. which promises a lighter skin tone for many of India’s complexion-conscious consumers . and the winner will be that super value marketers…. Some of today’s most successful companies recognize those customers are more educated and able to recognize true customer value… Positioning is simply concentrating on an idea – or – even a word defines that company in the mind of the consumer. In the 1980s. a hot-selling “fairness” cream. it had also entered into various marketing relationship with other portals. supported with high ad – spends that Hindustan Unilever(Ltd) hopes will see it emerges stronger after the current slowdown.com). specially targeted during festivals and events such as Valentines day. Positioning of individual product: 1) Lifebuoy is ‘one of Unilever’s oldest brands’ with more than a hundred-year history. the quicker becomes her search process.www. consumers began to demand “more for same”. today customer uses complicated decision making process to assess the alternative before making a purchase. It’s a combination of spiffing up its key brand. HINDUSTAN UNILEVER’S MARKET SEGMENTATION 27 . Since Hindustan Unilever(Ltd) is more clearly associated with a particular set of attributes in terms of benefits and prices.com informs. and luxury goods flourished. and the discounting era grew strong. Positioning In the 1970s consumers were ready to pay “more for more”.unilever. that the company has launched. “Lifebuoy has become more than just a red bar of soap – today the brand provides hygiene and health solutions for families 2) Fair & Lovely.

 Impulse segment – these products are often purchase on impulse.  Hindustan Unilever(Ltd) takes into account all these factors when producing a range of products. taken home consumed at a later stage. Markets segmentation can be defined in a number of ways such as:  Demographic variables (e. It targets different segments within the market. such as the:  Break segment – products which are normally consume as a snatched break and often with tea and coffee.Market place for any product is comprised of many different segments of consumers. gender. Consumers are groups. used these and then.  Take home segment – this describes product that are normally purchased in supermarkets. material states income etc…)  The lifestyle of consumers (i. 28 .g. their interests and activities) the benefits which consumers look for in a product or on the occasions when the product might be consumed.e. They include product such as close up. each with different needs and wants.

is now passe. category head. “Price cut or hike is not a long-term growth strategy. In 2006. “Our strategy for growth.” insists Sudhanshu Vats.4% over 2005.596 crore to the company’s total sales of Rs12. is now working on a new growth strategy for its laundry business.5% in the same period last year.” he said. 29 .The Real Taste of Rejuvenation After having fought a bitter price battle for market share with its rivals. Hindustan Unilever Ltd (HUL). Pricing.8% in the quarter ended June from 35.” HUL’s market share in the laundry segment grew to around 37. HUL says it is quite upbeat about the segment and says the laundry segment is one of its “key growth areas. HUL doesn’t report its laundry revenues separately but puts them under the soaps and detergent category. new consumer and retail trends and aggressive marketing and promotions. HUL’s soaps and detergents segment contributed around Rs5. the laundry industry in India was worth Rs7. home care.103 crore. Indian subsidiary of the Anglo-Dutch consumer goods company Unilever Plc. in fact.” says Vats. According to ACNielsen. now is focused on product innovation.908 crore in 2006 and rose 8.” “We have done key innovations across the product portfolio and it is working for us. “We successfully migrated from Rin Supreme to Surf Excel and Wheel Smart Srimati —which was rolled out in 2006—is also on the right track. This comes even as Unilever is scouting for a potential buyer for its laundry business in the US.

Hence Baillie’s Hypercity visits. what consumers are buying. India’s largest retailer and a former manager at Hindustan Unilever. 30 . and it’s best done incognito. “I can’t imagine any head from Lever House ever visiting other company offices like this. the India hypermarket chain. whose executives used to have emissaries make obeisance at Lever house in downtown Mumbai. But India’s recent retail boom has created large stores and malls.“Laundry has been an attractive segment in the past and is likely to keep growing in the near future. That’s how Douglas Baillie likes it. While Cooking Up Its Foods Biz The middle-aged Briton strolling the aisles and checking out the products doesn’t attract much notice from other shoppers in Mumbai’s Hypercity. Baillie. COMPETITIVE STRATEGY As Competition Heats Up.” says an amazed Damodar Mall. The recent price war between companies led to erosion in their profitability but now. chief executive of innovation and incubation at Pantaloon Retail. This is quite a change for Hindustan Unilever. wants to see how his products are stocked. India’s Top Consumer-Products Company Woos Affluent Shoppers With Global Brands Like Dove. and how shoppers are reacting to competitive brands. so the company wants to make sure it’s in with the new marketing crowd. and the calls he makes on the headquarters of the big retail chains. India’s premier consumer-products company. the managing director of Hindustan Unilever. the industry is stabilizing. It’s primary market research at its most elemental. Hindustan Unilever has traditionally relied on small traders and mom-and-pop corner stores to retail its products.

Facing Competition From P&G And Others The reason for this new found egalitarianism is that the $3 billion Hindustan Unilever is facing serious competition. and shampoos to soups.5 billion. which is practically synonymous with India. and dominates most of those categories. 31 . after ringing up India-based sales of $3. makes everything from detergents. sauces and tea. Finnish handset maker Nokia (NOK) dislodged it as the multinational with the highest revenues in India. The company. soaps. Yet early this year.

not a multinational. Hindustan Unilever’s managers hope their revenues from big retail will increase from 5% today to over 25% in 2012. 2006. Hindustan Unilever’s finance director. will grow to 28% by 2017. In the last year. For many decades most Indians thought Hindustan Lever was a local company. when Baillie. was the most successful and profitable company in the Unilever group. Yet this is still a dramatic change for Hindustan Unilever which. not long ago. “It is a big game for us. That dovetails with parent company Unilever’s new global realignment of products. including the popular Lux. a Zimbabweborn British national. Nivea. This means that all of Unilever’s brands will be available across global markets. 32 .Now Hindustan Unilever is under siege from aggressive Indian and foreign competitors such as Procter & Gamble (PG). the company. Hindustan Lever tea brands like Brooke Bond and Lipton have dipped from a combined market share of 29. organized retail. ACNielsen data shows. and L’Oréal. fitting in quite nicely with India’s turn towards more international products being sold in supermarkets. while its subsidiaries will sell the products. down from 21% a few years ago to just 11. the crown jewel whose managers had free rein to develop and build brands suitable for the local market. All this has taken a toll on Hindustan Unilever’s operating margins. Hindustan Unilever’s lead in hand soaps.84% now. became the first foreigner in four decades to head the Indiancompany. Hindustan Unilever’s strategy is to market its premium products through the hundreds of megastores springing up across India. is down from 55.3%.5% of India’s total $336 billion retail market. and the cream of India’s management graduates made their careers there. Then in February. According to retail consultant KSA Technopak.Parent Unilever will develop the brands and streamline product offerings across the world. Sundaram. These newly affluent shoppers present the best hope for the company’s future in India. 2007. Favorite detergent brands like Surf Excel and Rin are barely hanging onto their 37% share.2% to 24. That’s why the company is wooing consumers in big retail stores.” says D. currently just 3.2% to 54%. From Local Player To Multinational Overnight the change sent shock waves through India. The takeover of Hindustan Lever by Unilever became evident in March.

But today even L’Oreal has sachets of its Fructis shampoo. Last year operating profits reached $357 million. Hindustan Unilever executives are realistic about the new era in which it now operates. a 2004 price war with P&G in the detergent business forced Hindustan Unilever to slash prices on its premium brand Surf Excel. According to ACNielsen. But the rich margins of the past have not returned. was rechristened Hindustan Unilever to reflect its parentage. Baillie first had to sort out some past problems. frozen bread—than it has launched. 80% of Indian shampoo sales come from sachets. admits that it’s now “tougher to hold on to market share.then known as Hindustan Lever. to $274 million in 2004. thanks to price increases. the Tata Group’s beverage company Tata Tea overtook Hindustan Unilever as India’s largest selling tea brand. While the strategy aimed to conserve management energy. confectionery. And there was some stiff competition from rival Procter & Gamble. we aren’t the only ones seeing it. it also left the field wide open for competitors to attack Hindustan Unilever in the niche soap and detergent markets where its smaller brands held sway. executive director in charge of the home and personal care business. The effect: The company’s sales and operating profits stagnated at $2. Currently. If India is a great story. it has phased out more food products—wheat flour.” He also wants to expand the foods business in conjunction with the parent. Tata Tea’s market share increased 33 . in 2002 the company adopted Unilever’s global strategy of focusing on just 30 power brands instead of the total basket of 110 more local brands. In June. Tougher To Hold On To Market Share Baillie says he intends to get the company back “into the competitive growth zone and do this in a manner that we can consistently deliver. In India. Indeed. For instance. Nitin Paranjpe. while the company’s track record in foods has been dismal.5 billion for five years while operating profit plunged 37%. the company’s home and personal care businesses account for 80% of revenues and 85% of profits at Hindustan Unilever. where foods bring in half the revenues globally.” Rivals like P&G and Nivea have also copied Hindustan Unilever’s best innovation: the small shampoo sachets it pioneered in the 1980s. which sold for less than 2 cents each and which expanded the market for Hindustan Unilever products among India’s rural masses.

compared with the year earlier. Bernstein in New York.care portfolio. 2007. 2006. lost ground in shampoo. The company has a market value of about $11.9 rupees..5%. the company said. Managing Director Percy Siganporia says the gain is “a dream comes true for us. the largest Indian cigarette maker and partly owned by British American Tobacco Plc. ITC. according to the company. bath soap. the world's largest consumer-goods maker.'' Hindustan Unilever Ltd.7 percent.57) in the next year from 190. used to make soaps and foods. 52 percent owned by the Londonand Rotterdam-based parent. will continue to gain share in the next five years in India. toothpaste and tea in the quarter ended Sept. has surged 70 percent in the past year. who has a ``neutral'' rating on the stock. Tata Tea is exultant. who has an ``underperform'' rating on Hindustan Unilever. is also making inroads.'' said Anand Shah. 30. ``Given the competition. He expects the stock to drop to 180 rupees ($4. The price of palm oil. ``It has the ability to take losses in this segment as long as it grows its sales. to 19. while Hindustan Unilever slipped from 26. 34 .9% in July. who rates the stock ``outperform.'' said Macquarie Securities Ltd.from 16. according to Ali Dibadj. profitability will continue to be under pressure. It started selling more brands including Fiama Di Wills shampoo and Superia soap last year as the government raised tobacco taxes. an analyst at Angel Broking in Mumbai. an analyst at Sanford C. analyst Unmesh Sharma.” FUTURE COMPETITIVE STRATEGY 2010 Expectations P&G.7% in March. This strategy will still satisfy investors.'' Rising prices of raw materials have made it more difficult for consumer-goods makers to pass on higher costs.8 billion.1% to 19. Its share of the shampoo market declined by more than a percentage point to 47. `Profitable' Cigarettes The tobacco maker ``has a very profitable cigarettes business which will help it to invest and expand its personal.

bathing soaps and shampoo.  Leverage positive impact of growing Indian economy on consumer spending.India is Unilever's biggest market in Asia. It has sold soap in the country since 1888 and controls about half of the sales of products such as skin creams.  Grow a profitable foods and top end business. HUL-UNIQUELY POSITIONED TO CREATE VALUE  Our strategy  Competitive strengths  Innovation and R&D capabilities to straddle the pyramid  Versatile distribution network  Strong corporate responsibility and governance  Strong local and talent base Strategy  Grow ahead of the market by leading market development activities.  Grow the bottom line ahead of the top line.  Strong commitment to sustainable development. generating about 6 percent of annual sales. 35 .

Competitive Strengths Corporate Social Responsibility-Aiding In The Development Of The Country 36 .

 Shakti vani: one-to-many communication for category growth  ishakti: customized interaction with remote consumers.  partnerships with diverse stakeholders. The products include home and personal care products. Beverages. Foods. currently~44000 women cover 1. Ice Creams and Other. Personal Products.Shakti Three shakti initiatives  Shakti entrepreneur. The Group operates through seven segments: Soaps and Detergents. HINDUSTAN UNILEVER LIMITED COMPARATIVE BUSINESS ANALYSIS Hindustan Unilever Limited Formerly known as Hindustan Lever Limited. Exports.25000 villages. The Group's principal activities are to manufacture and market consumer products. Impact of community  business and social impact can go together. 37 .

The company focuses on efficient delivery to consumers with an improved supply chain. industrial and agricultural products.foods and beverages. processed-tri-glycerides and agri commodities. oral care. thermometers and plantations. yeast.employment grants-Rs 40000cr 38 . Industrial and agricultural products includes specialty chemicals. skin and hair care. ice creams. brand building initiatives and innovation. fertilisers. footwear and carpets. This analysis compares Hindustan Unilever Limited with three other companies in closely related industry sectors. plant growth nutrients. perfumery. rice. bakery fats. seeds. household. bulk chemicals. salt. animal feeds. coffee. local and regional players. tomato products.however rural income are growing faster with 70% population here. colour cosmetics and baby care. which has helped the company to sustain its leadership position in the overall FMCG category in India. atta and rawa.  Government grants and subsidies. Foods and beverages includes tea. Its brands are spread across 20 consumer product categories.THE BIG INDIAN ROMANCE  Rural population larger than europe(800 million)  Low growth in agriculture. Hindustan Unilever markets consumer goods throughout India. marine products and mushrooms.  Structural changes in the economy which are affecting this are:  Disintermediation in the agricultural market price discovery mechanism has benefited farmers. RURAL.income growth is crucial. Home and personal care products consists of personal and fabric wash. fruit and vegetable products. deodorants. The company faces competition from international. leather. cooking fats and oils.

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

000 villages in nine states where HUL stood to gain the most market share… They spent a lot of effort in designing low cost ways of communicating with their rural target. which is one of the many discussed in the book. “Differentiating soap products on the platform of health takes advantage of an opening in the competitive landscape for soap. Prahalad notes. as explained by Mr Lodish et al. mass-market soap.” reads a quote in the book from C.Lifebuoy is ‘one of Unilever’s oldest brands’ with more than a hundred-year history. concludes by stating that globally very progressive and innovative firms can also benefit from being “more entrepreneurial and less traditional in how they manage their advertising and communication. “or the villagers themselves might also be able to generate very effective communications vehicles. through its innovative communication campaigns.K. in a paragraph on innovation.” So.” 40 . “Lifebuoy has become more than just a red bar of soap – today the brand provides hygiene and health solutions for families. “As a big company.” The HUL example. Prahalad’s The Fortune at the Bottom of the Pyramid . HUL. many times it is difficult to change the procedures without creating significant political problems. why didn’t HUL try alternative campaigns when rolling out its initiative? “Probably the biggest reason is that they always did their communications the same way – even for innovative programs. has been able to link the use of soap to a promise of health as a means of creating behavioural change.” wonder the authors. and thus has increased sales of its low-cost.” The authors are of the view that government workers who have been interacting with villagers might have come up with some excellent ideas. The O&M strategy.” says the site. targeted “10.

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

000 consultants. Analysts believe the company’s current strategy of concentrating on premium products and marketing them in the large retail stores is a winning one. The advertising campaign.” He points to the demand for 42 . Tata Oil Mills Company  Brooke Bond  Lipton India  Modern Foods It acquired Kissan brand from UB group. tone for many of India’s complexionconscious consumers. But Hindustan Unilever’s brand is still tops. Hindustan Unilever Network is the direct selling channel of the company. Baillie is also getting aggressive on foods. Over the past six months. Hindustan Unilever is also milking one of its top brands—Fair & Lovely. NEW INITIATIVE Bringing High-End Dove To India Baillie is fighting back. Sumeet Budhraja. has made the brand a winner. which promises a lighter skin. all independent entrepreneurs. Dollops ice cream brand from Cadbury India. says that Hindustan Unilever “could have addressed a lot more categories. focusing on the Knorr brand of soups and curry mixes—ideal for the Indian market. It has also launched Pureit. Lakme cosmetics brands from Tata. where Indian customers love to touch and feel products. These premium brands retail not in neighborhood small stores but in supermarkets and hypermarkets. That has spawned a host of competitive fairness creams. a hot-selling “fairness” cream. trained and guided by HLN's expert managers and trainers. which suggests that regular use of the cream helps women gain confidence and makes them eligible for marriage. but they are more focused and regaining their aggressiveness. consumer analyst at Mumbai brokerage First Global Securities. and sunblock lotions. a home water purifier which supplies drinking water without boiling/need of electricity. Hindustan Unilever launched a high-end range of Pond’s skin care and Dove hair care products from Unilever’s international portfolio. soaps. It has about 350.

If Hindustan Unilever straddles the Indian corporate world.000 villages. 43 . the company’s sales grew 13%. with net profit up 29. and Baillie is pleased with the modest turnaround. it is because of being singleminded in identifying itself with Indian aspirations and needs in every walk of life.safe drinking water in India.000 women entrepreneurs in its fold. thereby improving their livelihood and the standard of living in rural communities. women empowerment.000 villages and directly reaching to 150 million rural consumers. and relief & rehabilitation after the Tsunami caused devastation in South India. SERVICE TO SOCIETY HUL believes that an organisation's worth is also in the service it renders to the community. Shakti also includes health and hygiene education through the Shakti Vani Programme.6%. 2007. and rural development. The vision is to make a billion Indians feel safe and secure.000 Shakti entrepreneurs covering 500. The programme endeavours to induce adoption of hygienic practices among rural Indians and aims to bring down the incidence of diarrhoea. The program now covers 15 states in India and has over 31. HUL is also running a rural health programme – Lifebuoy Swasthya Chetana. These efforts have delivered some promising results. and creating access to relevant information through the iShakti community portal. at one-third the price of established Indian brands such as Aqua guard. HUL is creating micro-enterprise opportunities for rural women. reaching out to 100. touching the lives of over 600 million people. and water management. care for the destitute and HIV-positive. Shakti. HUL has also responded in case of national calamities / adversities and contributes through various welfare measures. Through Shakti. Reason enough to keep patrolling those store aisles. In the quarter ended June. most recent being the village built by HUL in earthquake affected Gujarat. It has already touched 70 million people in approximately 15000 villages of 8 states. Shakti aims to have 100. the company embarked on an ambitious programme. By the end of 2010. which Hindustan Unilever exploited with the launch of water purifier Pureit in 2005. In 2001. HUL is focusing on health & hygiene education. It is also involved in education and rehabilitation of special or underprivileged children.

PERFORMANCE REVIEW Leadership Across Diverse Fmcg Category 44 .

Financial Overview -2009 45 .

*FIGURES BASED ON FY 2009-10 AUDITED RESULTS Monthly turnover of the whole seller 46 .

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

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

with in 3 years of time itc managed to capture 10% of the market 49 .The brands in which the whole sellers deal in confectionary ANALYSIS:- as per the figure and analysis parle leads the market .

cream. coconut 50 .Analysis :it is clear that the demand of sun feast glucose biscuit is more in the market which means that glucose biscuit is the best seller in the sun feast family then is cookies.

ANALYSIS:Shows that consumer scheme are preferred in the market by the whole sellers due to higher demand of that product. 51 .

SERVICE SATISFACTION LEVEL 300 250 200 150 100 50 0 Series1 HIGHLY SATISFIED SATISFIED LESS SATISFIED NOT SATISFIED 300 195 170 85 S ANALYSIS:shows that percentage of highly satisfied retailers was highest 52 .

QUALITY SATISFACTION 375 400 350 300 263 250 200 150 90 100 50 0 22 POOR GOOD BETTER EXCELLENT ANALYSIS-: shows that quality of Unilever products were found excellent 53 .

54 . Threats As the company is new in the industry it faces competition by the older player who offers extra discount to the market. Rural market can be covered very easily. Has strong brand awareness. Has complete variety. Increasing cost due to inflation. Weakness I think some product is no good for health. Has a very strong distribution network. Faces competition from the local player.SWOT ANALYSIS Strength Best quality of material used. Opportunity A variety of new products could be added to touch the raw market.

Unilever has a very strong distribution channel. TAJA TEA is the best seller in TEA segment of Unilever products. Quality of Unilever Food products are highly accepted in the market. Consumer schemes are more preferred in the market then retailer schemes. Being fresher in the confectionary market Unilever managed to capture around 10 % of market share in the branded confectionary. 55 . and of great benefit to the company in furthering its competitive advantage. This company project has demonstrated “HINDUSTAN UNILEVER’S MARKETING STRATEGIES AND POLICIES” that has proved to be extensive through. Most of the retailers and whole sellers were satisfied by the company’s services. Éclairs is the best seller in Unilever confectionary business.CONCLUSION Unilever holds second position in the branded FMCG segment in Jaipur. In this project it possible to see the success of Hindustan Unilever’s in it’s indorse its strong potential to continue to do well.

56 .

4. Some Gifts should be given to the retailers on giving the large orders so as to motivate 3. 57 . 6. They regularly check the stock of retailers. Different Schemes should be introduced by which their sale will increase. There should be a get together and General Meeting between all the company employees and retailers every Quarter.RECOMMENDATIONS & SUGGESTION In reference to my research I came to find out that merchandising helps in buying decision. 5. Recommendations on the basis of customer are: 1. The replacement of the defective products should be done effectively on the time. If the company want to increase the sales in off season should increase the more and more schemes in comparison to other products like TAJA TEA & SOAP SECTION. 2.

Where do you buy FMCG products from?  Super stores  Retail Stores  Others 4. Which Hindustan Unilever’s product do you usually prefer or use?  Bathing soaps  Skin care  Foods  Deodorants  others 6. Are you aware of any campaign of the above brands?  Yes  No 5. Describe Hindustan Unilever in one word? 58 .QUESTION NAIRE 1. Do you use FMCG products?  Yes  No 2. Do you think Hindustan Unilever’s product is easily available in market ?  Yes  No 7. Which brand of FMCG products do you use?  Hindustan Unilever  P&G  Nivea  Others 3.

Your comments on Hindustan Unilever’s product? _______________________________________________ 59 .8.

 David A. Prentice Hall of India Ltd. Aaker (1991). The Free Press. The Free Press. Aaker (1996) “Building Strong Brands”.unilever.  Philip Kotler (Eighth Edition) “Marketing Management”. “Managing Brand Equity”.  David A.com 60 .BIBLIOGRAPHY  A L Ries (1996). “Focus” Harper Collins Publishers Ltd.  The Economic Times – “Brand Equity”  Market survey and questionnaires  www.