Marketing Strategies of Hindustan Unilever Ltd.


Research Supervisor Mr. Shashank Shekhar Branch Manager, HUL

Submitted By: Chandra Bhushan Tiwari Roll No. 08061234015


I wish to express my heartfelt appreciation to many who have contributed to this study. I would like to thank Mr. Shashank Shekhar, Manger, HUL for his valuable guidance. I wish to express my gratitude to my faculty guide, who provided me with constant impetus to complete this project.




 Executive Summary  Introduction  Company Profile  Current Market Context  Research & Innovation Centre  Safety & Health Policy

Market Strategies

 Hindustan Unilever Ltd.  Competitors  Research Methodology


 Findings, Data Analysis & Conclusion  Recommendations  Suggestions


 Bibliography


(Annexure) Questionnaire


Hindustan Unilever Limited (HUL) is India’s largest Fast Moving Consumer Goods Company, touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. They endow the company with a scale of combined volumes of about 4 million units and sales of Rs.10, 000 crores. HUL is also one of the country’s largest exporters; it has been recognized as a Golden Super Star Trading House by the Government of India. Hence, research aims is that to study the existing marketing practices, emerging marketing plans and understanding companies business strategy with its profile. The main recommendations have been made on the addressing of the advertising message to the customers. An attempt has been made to formulate the communication in a way to build it on a platform of the basic need for buying HUL products. In another recommendation the suggestions towards better dealer interest in HUL products has been given a chance. The research is based primarily on primary data; however few references to industry figures from secondary data have been made. Data has been collected through in depth interviews and administered questionnaires.



Over 100 years' link with India. In the summer of 1888, visitors to the Kolkata harbor & noticed crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers". With it, began an era of marketing branded. Fast Moving Consumer Goods (FMCG). Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim. Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937. In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). These three companies merged to form HUL in November 1956; HUL offered 10% of its equity to the Indian public, being the first among the foreign subsidiaries to do so. Unilever now holds 51.55% equity in the company. The rest of the shareholding is distributed among about 380,000 individual shareholders and financial institutions. The erstwhile Lipton's links with India were forged in 1898. Unilever acquired Lipton in 1972, and in 1977 Lipton Tea (India) Limited was incorporated.

Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986. The liberalization of the Indian economy, started in 1991, clearly marked an inflexion in HUL's and the Group's growth curve. Removal of the regulatory framework allowed the


the company entered into a strategic alliance with the Kwality Icecream Group families and 6 . Lakme Limited. without any constraints on production capacity. HUL has also set up a subsidiary in Nepal. Lakme Lever Limited. Subsequently in 1998. deregulation permitted alliances. acquisitions and alliances on the Foods and Beverages front. The NLL factory manufactures HUL's products like Soaps. 1994 witnessed BBLIL launching the Wall's range of Frozen Desserts. formed a 50:50 joint venture. Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL). acquisitions and mergers. with significant interests in Instant Coffee. Simultaneously. which markets Huggies Diapers and Kotex Sanitary Pads. HUL and yet another Tata company. enabling greater focus and ensuring synergy in the traditional Beverages business. to market Lakme's market-leading cosmetics and other appropriate products of both the companies. and its factory represents the largest manufacturing investment in the Himalayan kingdom. Then in July to explore every single product and opportunity segment. Kimberly-Clark Lever Ltd. By the end of the year. Detergents and Personal Products both for the domestic market and exports to India. effective from April 1. the erstwhile Brooke Bond acquired Kothari General Foods. In 1995. Nepal Lever Limited (NLL). In 1992. HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994. In one of the most visible and talked about events of India's corporate history. the erstwhile Tata Oil Mills Company (TOMCO) merged with HUL. The 1990s also witnessed a string of crucial mergers. 1993. Lakme Limited sold its brands to HUL and divested its 50% stake in the joint venture to the company.

in a historic step. In 2002. The internal restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998. the government decided to award 74 per cent equity in Modern Foods to 1995 the Milkfood 100% Icecream marketing and distribution rights too were acquired. HUL acquired the government's remaining stake in Modern Foods. with effect from January 1. The two companies had significant overlaps in Personal Products. benefits from scale economies both in domestic and export markets and enable it to fund investments required for aggressively building new categories. thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. a leader in value added Marine Products exports. Finally. besides a common distribution system since 1993 for Personal Products. 1996. In January 2000. 7 . The two also had a common management pool and a technology base. HUL's entry into Bread is a strategic extension of the company's wheat business. HUL acquired the Cooked Shrimp and Pasteurised Crabmeat business of the Amalgam Group of Companies. Specialty Chemicals and Exports businesses. The amalgamation was done to ensure for the Group. BBLIL merged with HUL. In 2003.

000 suppliers and associates.350 managers. which holds 51. hygiene. Close-up. The rest of the shareholding is distributed among 380.000 employees. It is a mission HUL shares with its parent company. Brooke Bond. which incorporates latest technology in all its operations. including over 1. Lux. The operations involve over 2. comprising about 7. Lifebuoy. personal products. They are manufactured in close to 80 factories. coffee. Fair & Lovely. HUL has traditionally been a company. HUL's brands . Rin. Kwality Wall's – are household names across the country and span many categories soaps. is to "add vitality to life. directly covers the entire urban population. Knorr-Annapurna. Clinic. HUL's distribution network. and about 250 million rural consumers. Wheel. and personal care with brands that help people feel good. Pond's.000 redistribution stockists. look good and get more out of life. branded staples.000 individual shareholders and financial institutions. Sunsilk. tea.COMPANY PROFILE The mission that inspires HUL's 36. Surf Excel. Unilever. Kissan. Lakme." HUL meets everyday needs for nutrition. detergents. The Hindustan Lever Research Centre (HLRC) was set up in 1958. ice cream and culinary products. and now 8 .55% of the equity.

The programme now covers about 50. HUL is also running a rural health programme – Lifebuoy Swasthya Chetana. HUL is creating micro-enterprise opportunities for rural women. and water management. and relief & rehabilitation after the Tsunami caused devastation in South India. The programme endeavtheirs to induce adoption of hygienic practices among rural Indians and aims to bring down the incidence of diarrhoea. HUL is focusing on health & hygiene education. many with post-doctoral experience acquired in the US and Europe.000 villages in 12 states. it is 9 . Shakti. It is also involved in education and rehabilitation of special or underprivileged children. and rural development. HUL believes that an organisation's worth is also in the service it renders to the community. most recent being the village built by HUL in earthquake affected Gujarat.has facilities in Mumbai and Bangalore. Shakti also includes health and hygiene education through the Shakti Vani Programme. It has already touched 70 million people in approximately 15000 villages of 8 states. Over the last three years the company has embarked on an ambitious programme. HUL's vision is to take this programme to 100. Through Shakti. care for the destitute and HIV-positive. HUL has also responded in case of national calamities / adversities and contributes through various welfare measures. If Hindustan Lever straddles the Indian corporate world. and creating access to relevant information through the iShakti community portal. thereby improving their livelihood and the standard of living in rural communities. women empowerment. The vision is to make a billion Indians feel safe and secure. HLRC and the Global Technology Centres in India have over 200 highly qualified scientists and technologists.000 villages impacting the lives of over a 100 million rural Indians.

10 .because of being single-minded in identifying itself with Indian aspirations and needs in every walk of life.



6 Individual 19.7 Domestic Fls 14.7.300 Mn $ 13 .Hindustan Lever Limited Shareholding Pattern Flls 13.9 HUL Equity Capital .50 Mn $ Market Capitalisation .8 Unilever 51.

The general principles contained in this Code set out those standards. look good and get more out of life. and personal care with brands that help people feel good. 14 . We meet everyday needs for nutrition. Policy: HUL has earned a reputation for conducting its business with integrity and with respect for the interests of those their activities can affect. From HUL Spokesperson “To succeed requires the highest standards of behavior from all of us. hygiene. More detailed guidance tailored to the needs of different countries and companies will build on these principles as appropriate.ref: business world magazine. This reputation is an asset. It must have practical value in their day-to-day business and each one of us must follow these principles in the spirit as well as the letter”. just as real as their people and brands. We want this Code to be more than a collection of high-sounding statements. but will not include any standards less rigorous than those contained in this Code.PRESENT MARKETING STRATEGY: Mission: Hindustan Unilever Limited mission is to add Vitality to life.

15 . • HUL respect the dignity of the individual and the right of employees to freedom of association. employ and promote employees on the sole basis of the qualifications and abilities needed for the work to be performed. Products and services will be accurately and properly labelled. • HUL will maintain good communications with employees through company based information and consultation procedures.Obeying the Law HUL companies and employees are required to comply with the laws and regulations of the countries in which they operate. advertised and communicated. Consumers HUL is committed to providing branded products and services which consistently offer value in terms of price and quality. Employees • HUL is committed to diversity in a working environment where there is mutual trust and respect and where everyone feels responsible for the performance and reputation of the company. and which are safe for their intended use. The Environment HUL is committed to making continuous improvements in the management of their environmental impact and to the longer-term goal of developing a sustainable business. HUL will recruit.

16 . or may be construed as being. They will work on the basis of sound science. Conflicts of Interests All HUL employees are expected to avoid personal activities and financial interests which could conflict with their responsibilities to the company. HUL accounting records and supporting documents must accurately describe and reflect the nature of the underlying transactions. fund or asset will be established or maintained. give or receive any gift or payment which is. bribes or other improper advantages for business or financial gain. a bribe. a bribe must be rejected immediately and reported to management. No employee may offer. or offer of.HUL will work in partnership with others to promote environmental care. Any demand for. Business Integrity HUL does not give or receive. Innovation In their scientific innovation to meet consumer needs they will respect the concerns of their consumers and of society. increase understanding of environmental issues and disseminate good practice. applying rigorous standards of product safety. No undisclosed or unrecorded account. whether directly or indirectly. HUL employees must not seek gain for themselves or others through misuse of their positions.

V. They are responsible for implementing these principles. Unilever PLC and their respective subsidiary companies. The Board of Unilever expects employees to bring to their attention. In this Code the expressions 'Unilever' and 'Unilever companies' are used for convenience and mean the Unilever Group of companies comprising Unilever N.ref:THE NEWS 17 . and understood and observed by.. Compliance with the Code is subject to review by the Board supported by the Audit Committee of the Board and the Corporate Risk Committee. Day-to-day responsibility is delegated to the senior management of the regions and operating companies. The Unilever Board is responsible for ensuring these principles are communicated to. any breach or suspected breach of these principles. if necessary through more detailed guidance tailored to local needs. or to that of senior management. The Board of Unilever means the Directors of Unilever N. Provision has been made for employees to be able to report in confidence and no employee will suffer as a consequence of doing so.V. all employees.Compliance – Monitoring – Reporting Compliance with these principles is an essential element in their business success. Assurance of compliance is given and monitored each year. and Unilever PLC’.

7 3.FMCG Markets Slowdown in growth & then 2 years of decline FM M CG arket (HLL Categories) G rowth% 00 8 6 4 2 0 -2 -4 6.4 -1.1 -2.5 01 02 03 18 .

5 -2.FMCG Markets 2004 .1 03 Q1 '04 Q2 '04 Q3 '04 Q4 '04 19 .1 0.8 2.8 -2.Revival after 2 years of decline FMCG Market (HLL Categories) Growth% 02 8 6 4 2 0 -2 -4 -1.0 6.

Pricing action in 2008: Price reduction Price reduction (Bottles) & Value improvement (Sachets) 20 .

Investment Behind Brands Innovation & Superior Quality 21 .

50% No mud Rin Perfect Radiance “5 in 1” hair Total Care Whiter teeth Fresher breath health benefits 22 .Family – safe Advance from germs Petalsoft Water & effort saving Quick wash .

Current Market Context Actions • Pricing –Laundry : Price Reduction –Shampoos: Value Improvement & Lower Price Points –Toothpaste: Value Corrections & SKU rationalization • Investments behind brands – Innovations – Quality – Higher A&P • Corrective actions in processed Processed Foods • Corrective actions – Phased stock reduction – Withdrawl of ‘03 innovation – Defocus of Atta in unviable geographies • Sales decline of 26% arising from above actions • Market shares held / improved 23 Sales Growth% .


Research and Innovation Centers Since most new products and processes are developed in these Units. In addition to the Unit Head's responsibilities outlined above. QUALITY POLICY: Hindustan Unilever Limited considers quality as one of the principal strategic objectives to guarantee its growth and leadership in the markets in which it operates. products. 25 . certain additional responsibilities devolve on them to ensure implementation of the Environment Policy of the company. transport and storage. the heads of these units will:  Ensure that a formal and systematic risk assessment exercise is undertaken during the process/product development stage with specific reference to environmental impact. raw material and finished product handling.  Ensure that treatment techniques are developed for any wastes generated as a result of the new product/process and is incorporated into the process specifications.  Transfer technology to the pilot plant and main production through a properly documented process specification which will clearly define environmental impact and risks associated with processes.

The company is committed to respond creatively and competitively to the changing needs and aspirations of their consumers through relentless pursuit of technological excellence. The company is committed to fulfill its legal and statutory obligations and international standards of product safety and hygiene and will not knowingly sell product that is harmful to consumers or their belongings. This policy is applicable to production from its own facilities as well as to production that is outsourced. key suppliers and service providers and by entering into alliances with them. and offer superior quality products and services that are appropriate to the various price points in the market as well as to their commitment to building shareholder value. innovation and quality management across their businesses. It will institute systems and measures to monitor compliance in order to meet its responsibilities to consumers. 26 . The company delegates authority and responsibility for dissemination and implementation of this policy to each Business and Unit Head. The company is committed to extend its quality standards to its contract manufacturers. to jointly improve the quality of its products and services. The company will maintain an open communication channel with its consumers and customers and will carefully monitor the feedback to continuously improve its products and services and set quality standards to fulfill them. The company will periodically review this quality policy for its effectiveness and consistency with business objectives.

For example only three out of 10 consumers in rural markets use shampoo or skin care products. with pink petals in it. After attending to her baby son. rural India comprises not only over 70% of India's billion-strong population. both in terms of consumption and penetration. like personal products. In categories. pressure cookers.MARKET STRATEGIES Consumer satisfaction Indira is 20 years old. rural India offers an even bigger growth opportunity through greater penetration and then consumption. Indira had requested him to buy one. like soaps & detergents. for the festival later this evening. but also over 12% of the world's population. which are relatively less penetrated. The rural population already accounts for substantial consumption of Fast Moving Consumer Goods and also consumer durables. a tribal woman at Kondegaon village in Bastar district. sewing machines also comes from there. Similarly. About 50% of the sales of soaps & detergents are generated in rural India. The fact that 70% of the population accounts for only 50% of even relatively well-penetrated categories. Yesterday her husband brought her a white soap. Therefore growth in such categories will 27 . she will go to the village well to take a quick wash. collecting firewood. Home to over 700 million people. table fans. She is just back from the nearby jungles. almost half the demand for black & white television sets. Cost management: But the potential is even larger. indicates the enormous scope of consumption-led growth in these categories.

5. With media reach gradually increasing.5.emerge. it is because HUL has developed low-cost value-for-money branded products.Lux at Rs. weekly markets (haat). if products have to come up the order in the rural purchase hierarchy. HUL has responded to the trend with low unit price packs of even other products . Other marketing strategies: For decades now. Hindustan Lever has taken many initiatives over the decades to create markets in the rural hinterlands. Fair & Lovely Skin Cream at Rs. by innovatively leveraging non-conventional media.1. initiated in the 1980s. Brooke Bond Taaza tea at Rs. Pepsodent toothpaste at Rs.2. Pond's Cold Cream at Rs. fairs and festivals. Hindustan Lever has also taken initiatives to circumvent the limitation in communication channels. By marketing relevant products. or 50 paise) today constitute about 55% of Hindustan Lever's shampoo sales. Given the rural consumer's fascination for cinema. Pond's Talc at Rs. rural consumers today. Weekly markets. whose unit prices are within the reach of rural consumers. at affordable prices. sachets (Rs. like Wheel.5. Lifebuoy at Rs. like sachets. interspersed with products advertisements. as more consumers purchase these products.1. Re. If rural India today accounts for about half of detergents sales. they have to be affordable. share the same aspirations with their urban counterparts. where the media has its footprints. by offering them in pack sizes. the cinema vans show popular movies. At the same time.5. and then continue to use them regularly. Among them are wall paintings. Surf Excel sachet at Rs. 5.2. fairs and festivals are parts 28 . For example. The company has also taken initiatives to create markets even for apparently premium products.50. cinema vans.5.

The project is intended at generating awareness about good health and hygiene practices. Hindustan Lever has progressively strengthened its distribution reach in rural India. The project has helped eliminate barriers to trial. who act as change agents. influenced very largely by the retailer. because the consumer usually purchases what is available at the outlet.and parcel of rural life. In rural India particularly. availability determines volumes and market share. In recent times. The initiative will involve interaction with students and senior citizens. demonstrations. called Lifebuoy Swasthya Chetana. The company's stockists in these towns were made to use their infrastructure to distribute products to outlets in these villages. such demonstrations are being deployed to illustrate how visible clean is not hygienic clean. Direct rural distribution in Hindustan Lever began with the coverage of villages adjacent to small towns. over the decades. Availability of HUL’s Product: Generating awareness pays dividends only when steps are taken to ensure constant availability of products.000 villages of 8 states. the detergents market in rural India. Similarly in 2002. The occasions are used to demonstrate product benefits and also sell such products. and how using soap is essential to prevent easily avoidable infections. Such demonstrations have played a significant role in creating. Hindustan Lever has launched a similar large-scale direct contact. and specifically how a simple habit of washing hands is essential to maintaining good health. which already covers 70 million people in 18. and has strengthened salience of both particular categories and brands. which today has about 33 lakh outlets. But this distribution mode could only be 29 . Therefore. for example.

000 villages in 12 states. creating about 25000 Shakti entrepreneurs.extended to villages connected with motorable roads. Over time.1000 per month on a sustainable basis. and live in extremely small villages (less than 2000 population). Hindustan Lever is implementing Project Shakti. financial institutions. with the support of local authorities. HUL's vision for Project Shakti is to scale it up across the country by 2005. which gives her an income of about Rs 700 . A typical Shakti entrepreneur conducts business of around Rs. and is almost double of their past household income. Over the last five years. NGOs and government organisations are working closely to establish SHGs.10. and it could cover about 25% of the rural population by 1995.Rs. whereby SHGs are being offered the option of distributing relevant products of the company as a sustainable income-generating activity. the project has been extended.Rs 15. to about 50. whose objective is to alleviate poverty through sustainable incomegenerating activities. Since 2001. one HUL representative can take all the products from the company portfolio that he needs..000 villages. Hindustan Lever will further strengthen its rural distribution through mutually beneficial alliances with rural Self Help Groups (SHGs). as of now. The full benefit of Project Shakti will be realised after some years. 30 . covering 100. Begun with 50 groups in Nalgonda district of Andhra Pradesh. HUL has in the recent past established a common distribution system in rural areas for all its products.000 per month.000 . and touching the lives of 100 million rural consumers. Given the number of brands and their packs the rural retailer usually requires. this earning is very significant. As most of these women are from below the poverty line.

8% with both Home and Personal Care (HPC) and Foods performing well. Lux variants for the 75-year celebrations. All the brands in Skin category maintained their strong performance leading to a double digit growth for the category. Net Profit increases by 56% EPS for 2008 grows 17. Domestic FMCG sales were higher by 15. Broad based growth across categories • • PBIT grows 13.6%. FMCG Sales growth at 15.00 per share for 2008 Mumbai. February 14.5%.3% driven by strong performance in all categories. with Lux growing handsomely reflecting in market share gains. Significant sales growth was achieved in the highly competitive categories of Laundry and Shampoo.each.HINDUSTAN UNILEVER LIMITED – DECEMBER QUARTER 2008 RESULTS • • Total Sales grow by 14. Growth momentum achieved in the last three quarters has been sustained with total sales growing by 14.4%. 2009: Hindustan Unilever Limited (HUL) announced its results for December Quarter 2008.8% HPC and Foods grow by 17% and 9% respectively. 31 . Soaps recorded good growth. HPC business grew by 17.4%. Final Dividend Rs 2. and the national launch of “Jasmine Fresh” Rin Advanced Powder. Total Dividend Rs 5.50 per share of Re 1/. Consumer relevant innovations continue to drive off-take and key innovations during the quarter include the re-launch of “Thick and Strong” Sunsilk Pink.

In a competitive landscape. Processed Foods business grew strongly. achieving cost leadership across the extended supply chain continues to be a key priority. new initiatives in Customer Management and with significantly higher levels of A&P spends. We recognize the challenge of inflationary cost pressures driven by crude oil prices and. This was driven by higher investment behind our brands with exciting innovations. Relaunch of Knorr soup with a superior mix and introduction of new variants was the key Foods innovation during the quarter. Chairman commented: “We have sustained the growth momentum in December quarter and it continues to be broad based across HPC and Foods categories.In Foods business. The double digit sales growth of over 11% for the year 2005 has been achieved after a gap of six years. Tea achieved a modest growth despite a declining market and falling commodity prices. in the competitive context. led by the impulse category. Our strategic priority remains unchanged.” 32 . Coffee continued to perform well. in the competitive categories of Laundry and Shampoo. We will continue to leverage our focused portfolio of powerful brands to sustain market leadership and grow our market position across strategic brands and categories. Mr Harish Manwani. particularly. we shall continue to deliver consumer value and invest behind our brands. The Icecream business also achieved a 33% increase in sales. excellent activation. albeit on a low base.

10. For more information visit www. as a large portion of TEIL gardens are contiguous to the existing tea gardens of Woodbriar Group. look good and get more out of life. It may be recalled that HUL had sold its interests in Rossell Industries Limited and Doom Dooma Tea Company Limited in Assam during the last 12 months. 2006: Hindustan Unilever Limited (HUL) has transferred its entire shareholding in its 100% subsidiary Tea Estates India Limited (TEIL) to Maxwell Golden Tea Private Limited (MGT). a Woodbriar Group company on March 1. March 01. hygiene. with brands that help people feel good. The acquisition of TEIL by Woodbriar Group will provide scale and bring in synergy benefits to Woodbriar Group. HUL's mission is to "add vitality to life" through its presence in over 20 distinct categories in Home & Personal Care Products and Foods & Beverages.500 metric tons. touching the lives of two out of three Indians. 2006. About HUL: HUL is India's largest Fast Moving Consumer Goods 33 .HUL. TEIL owns 8 tea estates and 6 factories for processing tea in the high-yielding belt of Tamilnadu with an average annual output of approx. Canara Bank. With this disposal of shareholding in TEIL. The company meets everyday needs for nutrition. HUL has completed its exit from its tea plantations business both in South India and Assam. Madurai Circle has funded the debt component to Woodbriar Group for this acquisition. and personal care.HUL TRANSFERS TEA ESTATES INDIA TO MAXWELL GOLDEN TEA PRIVATE LIMITED Mumbai.

Pampers. It also makes pet food and water filters and produces soap operas (As the World Turns). Iams. Folgers. Olay. global health. Its purchase of Gillette in late 2005 was its biggest buy in company history. P&G's products fall into three categories: global beauty care. Pringles.00 M 10.00% RESEARCH METHODOLOGY The section includes the overall research design. Bounty. and global household care.000 0. Always/Whisper.COMPETITORS The Procter & Gamble Company Company Profile The Procter & Gamble Company (P&G) is a brand behemoth. Financial Highlights Fiscal Year End: Revenue (2005): Revenue Growth (1 yr): Employees (2005): Employee Growth (1 yr): June 56741. Crest. and family care. the sampling procedure. Downy/Lenor. More than 20 of P&G's brands are billion-dollar sellers (including Actonel. and Wella). Pantene. the data collection method.40% 110. Acquisitive P&G bought Clairol in 2001 and a majority of Wella in 2003. The world's #1 maker of household products courts market share and billion-dollar brands. the field method. and analysis and procedure. Tide. baby. 34 . Charmin.

magazine etc. I am also using the scaling technique to assess the attitude of the customer. Secondary data is from internet. Question is open and close ended depending upon the information that needed to be elicited.The sampling procedure is systematic sampling. Primary data is by visiting existing customer and expected customer of Hindustan Unilever Limited and making them fill up the questionnaire. RESEARCH INSTRUMENT The instrument use for data collection is structured questionnaire.RESEARCH DESIGN For this research project exploratory method is using DATA COLLECTION METHOD The data collect for the research can be classified as primary data and secondary data. SAMPLING PLAN Keeping all the constrains in mind a sample size of 100 people . and HUL are attempting to change customer perceptions of their brands and where specific buying motivations appear to be replacing generalities. books. 35 . SCOPE The Indian FMCG market currently appears to be at a crossroads.

DATA ANALYSIS AND CONCLUSIONS WHEN COMPARED WITH PROCTER AND GAMBLE LTD. success could well hinge on the best of bundle of services that HUL provides. I hope that this approach will soon enter the new era. Things are. Findings 36 . Thus. mark and the number One FMCG company in India this year. “Success will largely be determined to the extent a company can differentiate itself in terms of intangibles that go with a Product”. “It’s smarter to think about emotions and attitudes. Looking at the present scenario it can be said that though there is lot of competition in the market but HUL is picking up well.268 Million $.This meanwhile. if marketers are to do a better job of marrying what a HUL offers to the consumer’s image of the offerings. comfort and safety. however. The landmark achievement comes in 74 years in India after clinching its first overseas sale. before finalising a purchase.HUL grew from zero to the 2. maybe not with the same intensity . not necessarily in that order. slowly changing and customers at the upper end of the market are now ready to pay more for more. Another important outcome of the research is the believability of the claims. is quite unlike the west where buyers consider aesthetics. FINDINGS. Most of the claims are realistic and easy to understand. Most of the people don’t understand the quality claims by HUL. The mindset of the Indian consumer is such that he is delighted if he buys a pen a little cheaper than his neighbour.

vis-à-vis Procter and Gamble Ltd. Lifebuoy.On the basis of research.  In Ayurvedic Personal And Health Care they have Ayush. Hamam. FOODS  In tea they have the brand name brook bond and lipton.  In Colour Cosmetics they have Lakeme. Rin and Wheel. Product line Hindustan leaver limited HUL Home & Personnel Care > In personal Wash they have Lux .  In Deodorants they have Axe and Rexona.  In Laundry they have Surf Excel. They are as follows.  In hair Care they have Sunsilk Naturals and Clinic All clear. Breeze. 37 . Pears and Rexona .  In Oral Care their brands are Pepsodent and Close-up. Liril.  In skin care their brands are Fair N Lovely and Ponds.  In coffee they have bru. I have reached to this conclusion on the basis of following findings. Dove. we found that there is a nominal difference in the efficiency of Hindustan leaver limited.

markets several leading brands. In foods they have kissan and kinnor annpuran. markets several leading brands: Whisper sanitary napkins in the Feminine Hygiene category. In Fabric Care P&G has two of its world leading detergents Tide and Ariel. vicks action 500. the most advanced in home water purifier in the world. Vicks Cough Drops. Procter and Gamble P&G Hygiene and Health care ltd. Head & Shoulders and Rejoice. P&G Home Products Ltd. Health care products such as Vicks VapoRub. DEALERS Hindustan leaver limited While choosing the dealers HUL mainly emphasizes on the ‘market potential of that area. CONCLUSIONAs Hindustan Unilever Limited has more brands in its basket then Procter and gamble so it is more close to common man and touching his or her daily life in a more comprehensive manner. skin care and cosmetic products viz. Vicks Inhaler.  In ice creams they have the kwality walls. Old Spice. in Hair Care they have Pantene Pro V. WATER  Hindustan Unilever Limited has launched pueit. and dealers back ground 38 . dealer’s financial position. In Baby Care they have Pampers.

They are using new state of the art technology so that they can even track every single bottle of the good responsibility of the dealer. whereas satisfaction of P&G dealers lies in good promotional activities. goodwill and risk taking capabilities. present business. Like HUL. advertisement and the flexibility that the company provides them.(previous business). hence all the above stated parameters helps the dealer to attract more and more customers. They are also using latest Information Technology to track there consignment whose backend is managed by infosys. Procter and Gamble there is no difference as such in the process of selection of dealers in Procter and Gamble also. Transportation cost is paid by P&G. According to the senior officials of P&G it was found that it’s a volume based company. present business. P&G also considers dealer’s financial position. Procter and Gamble P&G is also using road and railway transportation system to deliver product from various production sites to the dealers. 39 . Conclusion: Dealers of HUL are satisfied by the companies support in there sales because the company provides them with various schemes and discounts. Each dealer has to keep the Good Receipt Note (GRN) number and report of the whole items of delivered products. MODE OF TRANSPORTATION Hindustan leaver limited. Transportation cost is shared by HUL and the dealer. HUL uses modified trucks and rails to deliver the products from various production sites to the dealers. goodwill and risk taking capabilities .

our group found that HUL provides more flexibility in terms of delivery of produce. FLEXIBILITY Hindustan leaver limited As far as flexibility is concerned.Hindustan Unilever Limited channel structures consist of whole seller. Procter and Gamble As far as flexibility is concerned. They are reinventing distribution—creating new channels and 40 . he is supplied with the products in time.Conclusion: Both P&G and HUL uses advanced tracking technology to track the goods and both companies use railways and roadways for transporting there products. Conclusion: our group has found that Dealers of HUL are more satisfied than the dealers of P&G and therefore HUL is a step ahead in terms of flexibility of placing orders and accepting orders from the dealers. DISTRIBUTION CHANNEL STRUCTURE Hindustan Unilever limited. HUL has there own warehouses in every state and if the dealer orders more . our group found that P&G does not provides more flexibility in terms of delivery of produce and in taking order from dealers. transportation cost is paid by P&G. rural and modern trade. In HUL transportation cost is shared by HUL and the dealer. mass retailers. Their new approach to distribution is holistic and seeks a three way convergence of product availability brand communication and brand experience. where as at P&G.

mass retailers. They are revamping the company’s distribution system using efficient consumer response {E C R} principles. Procter and gamble. which increases the availability and presence of HUL product. unsold products are mostly taken back by HUL 41 . has more effective and efficient distribution network as compared to P & G. HUL is also given emphasis on penetrating the rural market as well. The new distribution system has given the company considerable cost and process efficiencies while significantly availability and visibility of the company’s product in the stores.L. If company feels that it is not the fault of the dealer then company would return it.Procter and gamble’s channel structure also have whole sellers.redefining the way current channels are serviced.Our group has found that H.L. They are building new capabilities in training the large number of people involved in these initiatives. DEALING WITH UNSOLD & DAMAGED MERCHANDISE Hindustan Unilever Limited-It depends on the condition and type of the product. Conclusion.

P & G replaces the damaged product with the new one. The main method of performance appraisal that have been adopted by Hindustan Unilever Limited are 360 degree appraisal and 42 . PERFORMANCE APPRAISAL SYSTEM Hindustan Unilever Limited. Conclusion. Hence P & G is more flexible here.Our group has found that both the companies take back the unsold product however P & G is more flexible in returning the damaged product as compared to the HUL. The supervisor keep track of the performance of the employees and based on their performance he choose the right method of performance appraisal.The performance appraisal system in Hindustan Unilever Limited is done under the supervisory of the Appraisal supervisor.Procter And Gamble. it means that the damaged product are replaced by new product.

both the companies are taking almost the same measures and same parameters for performance appraisal . however both the company were not willing to disclosed any changes brought in performance appraisal system during the past five years . channel members expect the company of ROI. HUL has also made changes in channel members during 2001-2006 to increase sales of the company.supervisory appraisal methods. There was also change in performance 43 . Every channel member has to fulfill there given targets. Procter And Gamble. Every channel member gets credit period of two weeks. but not willing to give any reasons and what changes have been brought. Conclusion. it is done as an early exercise and performance appraisal parameter is the past performance of the employees. TARGETS Hindustan Unilever Limited : HUL has different channel members with specified targets and they are intended to increase sales.the performance appraisal system in Procter and gamble is also done under the supervisory officer and almost same method are used as in the Hindustan Unilever Limited .the conclusion that our group has found that there is hardly any differences is the performance appraisal methods in both the companies .both of the companies said that there have been change in some areas and which has shown positive results.

Procter And Gamble. HUL also sets targets to there channel members and provides very less margins to dealers compared to P&G.P&G also made changes in channel members during 2001-2006 to increase sales of the company.P&G also has different channel members with specified targets and they are intended to increase sales . Channel members get credit period of 30 days. but HUL runs some monopoly over the market by offering a credit period of only two weeks where as P&G offers credit period of 30 days. HUL adopts on the job and off the job training 44 . SALES FUNCTIONING Hindustan Unilever Limited : HUL is emphasizing on rural areas through project Shakti these days and sales also have been increased and HUL does not have any sales outlets HUL assigns sales territory to there sales persons according to there skill and experience and assigns targets to them. P&G has made many changes to there commercial terms during 2001-2006 to increase sales. The channel members expect ROI depending on there knowledge and on there performance to. HUL has also made changes in commercial terms intended to increase the sales in different channels and also to increase profit margins to company. Conclusion-Both HUL and P&G are flexible to channel members. Payment terms of P&G are also flexible to the channel members and P&G also has flexible payment terms P&G also offers many discounts to these channel members.appraisal system during 2001-2006 to improve sales.

responsibility of the sales personnel is to clarify the doubts of the customer and make sales of the product. Sales personnel are motivated through incentives and promotions. Conclusion. HUL and P&G should open exclusive shop. P&G motivates their sales force by providing them with targets and incentives.e. i. Both the co. But it is only in India so it should be 45 . P&G does appraisal on a monthly basis depending on increase and decrease of sales where as HUL does it once in a year. Both P&G and HUL trains their sales force and has a good performance appraisal system. RECOMMENDATIONS Both the companies having good market share in India and it keep on increasing. P&G trains their sales force by on the job training and training process is emphasized on skill and experience. Procter And Gamble: P&G has increased the number of outlets in the country and the population in the area also increased and there is no effect on sales. P&G sets targets to there sales force on the basis of increase or decrease in demand and also according to the previous sales .system to there sales force it is emphasized on improving skill and experience of the sales personnel. P&G has also brought many changes in the training system that has affected its sales too. HUL is already having exclusive shop in Mumbai called SANGAM STORE. sales territories are assigned according to the capabilities of the sales personnel.

SUGGESTIONS Key attribute components: ♦ Value for money and Customer Care ♦ Operational attributes. It was heavily criticized because it was not fit with the brand. by doing this the sales people get motivated. It adversely affect the opinion of the customer and it results in decrease in sales. there should be BRAND FIT in that. They should offer 24 hours free home delivery system.increased. The employee should be given uniforms in which the name of the company should be printed. 69% of the Indian population lives in rural areas. There is huge market there and very less market has been penetrated. The delivery vehicle should be attractive the name of the company should be printed in that so that it becomes the sources of advertisement. At present they are currently doing their CSR in southern India. These shops should be opened for 24 hours. The companies should emphasis on its advertisement. Both these companies should concentrate on rural areas. Both companies should emphasis their business in areas. P&G has been hardly been seen in the rural areas. So they should increase their activities in north India also. For example when lux launch its advertisement with sharukh khan with girls. They should penetrate their business in the rural areas. They should increase their CSR activities in northern India. 46 .

In any correspondence with the customers the message should be sent in these components only to have the maximum benefit from the advertisement.♦ Physical attributes. the technical details should be presented in a clearer manner or the dealers need to be educated properly. 47 . the shampoos are still not selling much. when actually it should be sold like a high volume product. This is perhaps due to the bargaining stress on the customer and the weak push given by the dealer to the particular item. The dealers don’t provide much support to the customers in making them understand the real Quality behind them. The basic need of the customer need to be addressed which is actually not much expensive and better quality. ♦ Customer Specific Details. Another serious suggestion is that HUL must give good attention to their all the products rice and all are not getting much attention. Either. HUL sales growth in june 2004 was decreased due to the problem with promotion and pricing. ♦ Brand Image. Although being the most competitive product on the basis of the Market Operating Price (MOP). LIMITATIONS Everything in this world has its own advantages and disadvantages which shows ‘nothing is perfect’. Also these components should be dealt with independently.

4. 2. BIBLIOGRAPHY 1.Following are the problems faced but it’s a part of game: 1. SUBJECTIVE: This project only tells you what it is all about. BIASNESS: Sometimes interested customers were also biased so the collected figures involve both positive and negative figures. So much time has been spent for this purpose. LOW PARTICIPATION: Obviously many respondents have not participated in this and have also created some problems which simply shows that they were not interested. It does not cover all the aspects of the company. 5. The Times of India and Hindustan Times 48 . 3. TIME CONSUMING: It is very much obvious that it is a time consuming process.

Company’s brochure 4.2. The Economic Times 3. www. ANNEXURE SPECIMEN CUSTOMER SURVEY QUESTIONNAIRE 49 5.

Are you using any HUL product? YES NO Q4.Name Age Address Q1. from where? Newspaper Television Magazines Others _______ Q3. How many members are there in your family? Q2. If Yes. then are you satisfied? 50 . Have you ever heard of HUL (Hindustan Unilever Limited )? YES ______ NO ______ If Yes.

If No. then reason being Poor quality No services High prices Others Q6.YES NO Q5. Which brand do you use in the following categories : Personal Wash Lux __________ Breeze Others ___________ Dove __________ Laundary ___________ Surf Excel _______ Wheel Skin Care Fair&Lovely ________ Rin Others ________ Pond’s ________ Others ________ Sunslik Naturals ________ Oral Care Pepsodent ________ 51 Close-up ________ .

Do you keep products of Parle in your shop? ( please tick mark on the appropriate answer) a).Yes b). What Recommendations or suggestions would you like to give for improvement of our products? RETAILER SURVEY QUESTIONNAIRE 1.Others ________ Deodorants Axe ________ Lakme ________ Rexona ________ Colour Cosmetics Lakme ________ Others ________ Q7. 52 . No .

erratic supply b). Which products of HUL do you keep? Personal Wash Lux __________ Breeze Others ___________ ___________ Dove __________ Laundry 53 . don’t know about the company 3.(If the answer is yes then go to question number: 3 ) 2. low margin d). Why don’t you keep the products of Parle in your shop or why did you stop keeping its products? Yes No a). no supplier e). lack of demand c).

Very High High Average 54    . 2. What is the sales/demand of the product? 1. 3.Surf Excel Wheel Skin Care Fair &Lovely ________ Rin Others ________ Pond’s ________ Others ________ Sunslik Naturals ________ Oral Care Pepsodent Others Deodorants Axe ________ Lakme ________ ________ ________ Close-up ________ Rexona ________ Colour Cosmetics Lakme ________ Others ________ 4.

Rarely Very Rarely Never    5. 4. Agency 4). 6. How do you rate the delivery process by the dealer? 1.4. 5. Distributor 2). Excellent Above Average Average Below Average Extremely Poor      55 . Dealer 3). From whom do you purchase your product? 1). 5. 3. Wholesaler     6. 2.

d)More than three. 2) Three wheeler 3) Four wheeler   a) van__ . Which vehicle do they mainly use for delivery? 1).b) truck__.c) others__.     8. scooters__ . Two wheeler  a).7. b). What are the other schemes and incentives offered by them? ___________________________________________________ 56 .One b)Two. 13. How many dealers are there in the district? a). c)Three. motorbike__.

No. 14.___________________________________________________.: ________________________________________ Signature: ________________________________________ 57 . What improvements would you like to have in the distribution process? _________________________________________________ _________________________________________________ PERSONAL DETAILS: Name: ___________________________________________ Address: _________________________________________ Cont.

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