Professional Documents
Culture Documents
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. INTRODUCTION
The mission that inspires HUL's more than 15,000 employees, including over
1,400 managers, is to help people feel good, look good and get more out of life
with brands and services that are good for them and good for others. It is a
mission HUL shares with its parent company, Unilever, which holds about 52 %
of the equity.
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COMPANY PROFILE AND STRUCTURE
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PRODUCTS
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FABRIC CLEANING SOAPS HAIRCARE SKIN &TOOTHCARE
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ASIAS
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Closeup is the original youth brand of India. The first brand targeting youth in
the oral care market. Closeup was the first gel toothpaste to be launched in
India and has led the gel toothpaste segment ever since. In 2004, Closeup was
re-launched with a bang. And this time it was packed with the power of
Vitamin Fluoride System – a powerful mix of Vitamins, Fluoride, Mouthwash
and Micro whiteners, the perfect combination of ingredients for fresher breath
and stronger, whiter teeth. The brand umbrella also includes Closeup Lemon
Mint, gel toothpaste with the whitening benefits of lemon. The latest entry in
the Closeup stable is Closeup Milk Calcium – revolutionary new toothpaste
with the goodness of milk calcium in an industry-first core-in-sheath format,
with white milk calcium nutrient on the inside and a refreshing blue gel on the
outside.
Dove soap was launched in 1957. The skin's natural pH is slightly acidic 5.5-6.
Ordinary soaps tend to be alkaline, with pH higher than 9. Dove is formulated
to be pH neutral (pH between 6.5 and 7.5) and to be mild on skin. This makes it
suitable for all skin types for all seasons. Dove Body Wash is available in select
outlets. Since the 1980s, for example, Unilever has launched a moisturising
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body-wash, deodorants, body lotions, facial cleansers, shampoos and
conditioners, providing a comprehensive range of solutions.
Since 1929, Lux , offers an exciting range of soaps and Body Washes with
unique elements to make bathing time more pleasurable. One can choose
from a range of skincare benefits like firming, fairness and moisturising. Lux
stands for the promise of beauty and glamour as one of India's most trusted
personal care brands .It continues to be a favourite with generations of users
for the experience of a luxurious bath. Lux has offered a range of soaps in
different colours and world class fragrances. Lux is a beauty soap of film stars –
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New Lux Strawberry & Cream and Lux Peach & Cream contain a blend of
succulent fruits & luscious Chantilly cream that melts down into your skin
making it soft and smooth
Pepsodent, launched in 1993, was the first toothpaste with a unique anti-
bacterial agent to meet the consumer need of checking germs even hours after
brushing. Pepsodent packs included a Germ Indicator in February-May 2002,
which allowed consumers to see the efficacy in fighting germs for themselves. .
Pepsodent connects directly with kids and their parents. Pepsodent has always
worked in the direction of an overall awareness of dental health. Pepsodent
also includes a range of toothbrushes.
Business Segments
Soaps and Detergents (46% Revenue, 44% EBIT): This segment includes
Laundry and Personal Wash products like soaps, detergent bars, detergent
powders, detergent liquids etc. Sales of the segment grew sales by 13.9% and
20.3% in CY07 and H1CY08 respectively. Fabric Wash has shown strong growth
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in this year with the market share moving up from 34.6% in Q4CY06 to 38.3%
in Q2CY08 Profitability margins which declined from 25.7% in CY'02 to 13.7 %
in CY'05 due to pricing actions from P&G in the Laundry segment have slightly
recovered to 15.6% (CY'07).
Personal Care Products (26% Revenue, 46.2% EBIT) : This business which
comprises mainly skin care, hair care and oral care is the most profitable
segment for HUL .It is highest contributor to HUL’s EBIT at 47%. This segment
has shown a revenue growth of 20.9% in H1CY08 and the new launches in the
Ponds and Dove range contributed to the profitability of the segment.
Foods (4% Revenue, 0.8% EBIT) :In spite of having one of the best
distribution networks (coverage of 6.3 mn outlets) in the country, the food
business has never constituted a big part of revenues.Thats why this is the
current focus area for the company. Presence in the foods category is mainly
through soup mix, Chinese meal maker, jams, ketchups and salts. HUL is clearly
keeping a low profile in the staples category, which is low margin business.
Ice Cream(1% Revenue, 0.6%EBIT) : This segment includes Ice Creams and
Frozen Desserts.Kwality Wall's, launched in 1995, is the company's master
brand for ice cream. It has launched Moo brand that boosts children’s calcium
levels in the June quarter of CY07.
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Others: This section includes Chemicals,Water purifiers, Agri seeds,
Property Development, Water business, etc. It has seen a growth of 41.5% as
Pure It (a water purifier product) increased its reach to more than 600 towns.
A clear direction
The four pillars of our vision set out the long term direction for the company –
where we want to go and how we are going to get there:
We help people feel good, look good and get more out of life with
brands and services that are good for them.
We will inspire people to take small everyday actions that can add up to
a big difference for the world.
We will develop new ways of doing business that will allow us to double
the size of our company while reducing our environmental impact.
We've always believed in the power of our brands to improve the quality of
people’s lives and in doing the right thing. As our business grows, so do our
responsibilities. Considering the wider impact of our actions is embedded in
our values and is a fundamental part of who we are.
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Principles:
Our corporate purpose states that to succeed requires "the highest standards
of corporate behaviour towards everyone we work with, the communities we
touch, and the environment on which we have an impact."
Conducting our operations with integrity and with respect for the many
people, organisations and environments our business touches has always been
at the heart of our corporate responsibility.
Positive impact :
We aim to make a positive impact in many ways: through our brands, our
commercial operations and relationships, through voluntary contributions, and
through the various other ways in which we engage with society.
Continuous commitment:
We want to work with suppliers who have values similar to our own and work
to the same standards we do. Our Business partner code, aligned to our own
Code of business principles, comprises ten principles covering business
integrity and responsibilities relating to employees, consumers and the
environment.
HUL has consistently been the top advertisement spender over the years with
expenditure of Rs 650 crore in the year 2008. Second largest spending is Rs 240
crore by a telecom company. P&G India and Colgate-Plamolive, other FMCG
players, also feature in the top 10 advertisers list. HUL has increased its
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advertising expenses by 26.56% in CY'07.Also the money spent in Research and
Development which facilitates new product launches and re-launches of
existing products has seen a raise by 38.16% in the same year. Pricing scenario
in current time is in favor of companies but in past due to pricing war with P&G
in Soaps and Detergents, HUL's magins in the segment declined from a high of
25.7% in CY02 to 13.7% in CY05.
COMPETITION
The above table shows the competition among the Indian FMCG brands. HUL is
the leader of the market with maximum market capitalization and maximum
sales turnover. The Net Profit stood at whooping 2500 crore approximately.
HUL has Dominated the FMCG market but now faces a lot of competitors like
ITC , Procter & Gamble, Godrej Consumer products,etc.
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BIGGER BETTER & FASTER I NNOVATIONS.
Dove moisturing oil care Lakme Sun Expert. Now more accessible
range. with Re.1 sachet.
Cup-a-soup instant Fair & Lovely future tube Soupy Noodles Rs.5 pack.
noodles.
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FINANCIAL PERFORMANCE
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CHALLENGES BEFORE HUL
1. Competition in Core Categories.
2. Raw materials.
4. Emerging player.
5. Advertising expenditure.
6. Price positioning.
8. Consumer behaviour.
9. Global Exposure.
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HUL CORPORATE SOCIAL RESPONSIBILITY
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BCG Matrix
Stars are using large amounts of cash. Stars are leaders in the
business. Therefore they should also generate large amounts
of cash.
Cash Cows are often the stars of yesterday and they are the
foundation of a company.
DOGS (low growth, low market share)
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BCG Matrix of HUL
Relative Market share(Cash Generation)
HIGH LOW
STAR
LUX SUNSILK SURF EXCEL FAIR & LOVELY
QUESTION MARK
RIN PEPSODENT
CASH COW
AXE Vaseline petroleum jelly
DOG
WHEEL
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SWOT - HUL
Strengths
4. Distribution structure with wide reach, high quality coverage – The launch of
project “Shakti” has helped HUL to create brand awareness and extensive
reach in rural India.
6. Well placed to take advantage of growth in rural India and lower strata of
the society through “Shakti”.
7. It could look at introducing products from its parent company like margarine
in order to cater to changing consumer tastes and opportunities in food sector.
Weaknesses
1. Price positioning in some categories allows for low price competition like
Amul captured Kwality’s market.
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Opportunities
1. Growing consumer base due to increasing income levels and new consumers
from lower strata of the society
Threats
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Hindustan Unilever (Marketing Mix).
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1. PRODUCT
Attributes :
b) Services:- Focus on after sales services in case of any product defect or any
other issues.
e) Brand Name:- With over 20 lakhs customer, over 2000 suppliers, over 16500
employees makes this company a very popular brand.3. Appearance of
product is very attractive & complete information of product makes customer
buy the products as per needs.
2. PRICE
b) The prices of the products are such that it is affordable to all income group.
d) Discounts are offered on various products depending upon the products. (Rs
10 off on 2kg detergent powder). 1+1 free offers, seasonal discounts etc.
3. PLACE
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c) Also uses Direct Selling Channels, i.e franchisee to entire population, Eg:-
Aviance & Ayush.
f) Builds & strengthens the market where already presence of HUL exists.
4. PROMOTION
c) Share Knowledge about the products verbally or through print & electronic
media, so that consumers knows all the details about the
product.
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PROCTER & GAMBLE
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laundry, Procter & Gamble began making Downy fabric softener in
1960 and Bounce fabric softener sheets in 1972. One of the most
revolutionary products to come out on the market was the
company's Pampers, first test-marketed in 1961. Prior to this point
disposable diapers were not popular, although Johnson & Johnson
had developed a product called Chux. Babies always wore cloth
diapers, which were leaky and labor intensive to wash. Pampers
provided a convenient alternative, albeit at the environmental cost
of more waste requiring landfilling.
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second place. This added brands such as Gillette razors, Duracell,
Braun, and Oral-B to their stable. The acquisition was approved by
the European Union and the Federal Trade Commission, with
conditions to a spinoff of certain overlapping brands. P&G agreed to
sell its SpinBrush battery-operated electric toothbrush business to
Church & Dwight. It also divested Gillette's oral-care toothpaste line,
Rembrandt. The deodorant brands Right Guard, Soft & Dri, and Dry
Idea were sold to Dial Corporation.[5] The companies officially
merged on October 1, 2005. Liquid Paper, and Gillette's stationery
division, Paper Mate were sold to Newell Rubbermaid. In 2008, P&G
branched into the record business with its sponsorship of Tag
Records, as an endorsement for TAG Body Spray.[6]
P&G exited the food business in 2012 when it sold its Pringles snack
food business to Kellogg's for $2.75bn after the $2.35bn deal with
former suitor Diamond Foods fell short.[10] The company had
previously sold Jif peanut butter and Folgers coffee in separate
transactions to Smucker's.
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Procter & Gamble Co. PROFILE
Founded 1837
Employees 138,000
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PRODUCTS
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Ambi Pur
Though we strive hard to keep our homes and our cars clean and tidy,
the results are rarely satisfactory. Odours that linger in our homes just
before guests arrive, or a persistent stench that never leaves the car,
not only adversely affect our mood, but also that of our guests. With
this in mind, P&G experts have bottled the fragrance of freshness
with the new Ambi Pure range for both homes and cars.
Ariel
Introduced in 1991, Ariel was the first to bring the 'compact detergent'
technology, the enzyme technology for safe and superior stain-
removing power and the 'smart eyes' technology into India, with an
aim of becoming India's best stain removal detergent. Ariel contains
safe ingredients for all fabrics under recommended usage conditions
for laundry. The Ariel product range in India includes different
variants to meet your specific needs like Ariel OxyBlu, Ariel Oxyblu
Ultramafic, Ariel Front O Mat, Ariel 2in1.
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Duracell
Gillette
Gillette® has been at the heart of men‟s grooming for over 100 years.
Each day, more than 600 million men around the world trust their
faces and skin to Gillette‟s innovative razors and shaving products
designed for the unique needs of men – helping them to look, feel and
be their best every day. The razor range in India includes Gillette
Vector, Gillette Mach3, Gillette Mach3 Turbo, Gillette Guard and
Gillette Mach3 Turbo Sensitive and Gillette Fusion. The Shave Care
range includes Gillette Fusion Hydra Gel, Gillette Series Sensitive
Skin Foam, Gillette Series After Shave & Gillette Classic Shave
Foam Sensitive Skin. The Gillette Skincare regimen is a no-fuss and
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efficient solution in caring for the health and appearance of men‟s
skin and includes a special range of designed-for-men Gillette
Skincare Foaming Wash, Gillette Skincare Scrub, Gillette Skincare
Facial Moisturizer with Aloe Vera, Gillette Skincare Facial
Moisturizer with SPF and Gillette Skincare Lotion 100ml.
Since 1950, Head & Shoulders has been at the forefront of scalp and
hair science, significantly advancing the treatment of dandruff and
scalp problems. Along with professional advice and expert insight we
have a wide range of products to care for your scalp and nurture your
hair.
Head & Shoulders is available in 8 variants in India including Men
Hair Retain, Complete Care for Dry Scalp, Anti Hair fall, Smooth &
Silky, Cool Menthol, Clean & Balanced, Thick & Long & Silky
Black.
Olay
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Olay is a product truly born in love created by Graham Wulff for his
wife Dinah in 1950s to address her frustration with the then thick and
waxy beauty creams. Today, Olay is one of the most recognizable
brands in the world. Yet through all the changes and innovations, the
philosophy upheld by Graham Wulff remains just as relevant as ever:
Help women look and feel beautiful and Challenge what‟s possible
with their skin. The Olay portfolio in India covers Base Moisturizer,
Anti Ageing and Olay Whitening. The Anti Aging range includes
Olay Regenerist, Olay Total Effects, and Olay Age Protect. The Olay
Whitening range includes Olay White Radiance and Olay Natural
White. The Base Moisturizer includes Olay Moisturizing Lotions and
Creams
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Pampers
Pantene
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Tide
Tide is the World’s Oldest & Most Trusted Detergent brand and
is the Market Leader in 23 Countries around the world.
Launched in India in mid-2000, Tide provides ‘Outstanding
Whiteness’ on white clothes & excellent cleaning on coloured
clothes as well. Tide’s Fabric Whitening Agents clean clothes
without bleaching or removing colour from a garment. The Tide
range in India includes Tide (Detergent) and Tide (Bar with
Whiteons). Tide Naturals was launched in India in December
2009. Packed with the benefits of lemon and chandan, it provides
great cleaning while keeping the hands soft.
Vicks
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Vicks has long been invested in the science and research of
respiratory health and through that dedication has developed a wide
range of therapeutic products that offer effective relief for all the
major signs and symptoms of the common cold, flu and sinus pain
and pressure. The Vicks product range in India includes Vicks Cough
drops, Vicks Vaporub, Vicks Inhaler, Vicks Vapocool, and Vicks
Action 500 Extra.
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BCG MATRIX.
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competitor companies because they have the greater share of the
market. Hence, market share is correlated with experience.
Market Growth
Market growth axis, correlates with the product life cycle paradigm,
and predicates the cash requirement a product needs relative to the
growth of that market. A fast growing market is generally considered
attractive, and pulls a lot of organisation’s resources in an effort to
increase gains. A case in point is the technological market widely
consider by experts as a fast growing market, and tends to attract a
lot of competition. Therefore, a product life cycle and its associated
market play a key role in decision-making.
Cash Cows
These products are said to have high profitability, and require low
investment for the fact that they are market leaders in a low-growth
market. This viewpoint is captured by the founders themselves thus:
The cash cows fund their own growth. They pay the corporate
dividend. They pay the corporate overhead. They pay the corporate
interest charges. They supply the funds for R&D. They supply the
investment resource for other products. They justify the debt
capacity for the whole company.
Stars
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Stars are leaders in high growth markets. They tend to generate large
amounts of cash but also use a lot of cash because of growth market
conditions.
Question Marks
Example: ORAL-B
Dogs
Dogs often have little future and are big cash drainers on the
company as they generate very little cash by virtue of their low
market share in a highly low growth market.
Example: Camay.
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Amounts in millions, except per share amounts
Developing Markets
Demographic trends across the world
Going Green Ecofriendly.
Selling directly to customer.
Better product experience.
Competitors
Rising cost of raw material and energy prices
Economic slowdown in the US and Eurozone
New Regulations
Vicks banned in US market.
Slowdown in consumer spending.
Substitute products have cheaper prices.
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CORPORATE SOCIAL RESPONSIBILITY OF P&G
Since 2006, a total of 100 million women and their babies have been
protected against maternal and neonatal tetanus.
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The SOS Childrens Villages program provides safe housing for
homeless children in Greece, Portugal, and Spain. P&G funding
supports education and extracurricular activities, providing children a
chance to grow academically, develop their talents, and build their
future. P&G employees regularly visit the villages to serve as mentors
to the children.
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PROJECT DRISHTI THE FIRST EVER SIGHT RESTORATION PROGRAM
IN INDIA (1999).
P&G tied up with the National Association for the Blind (NAB) to
launch Project Drishti and restore eyesight to 250 blind girls through
corneal transplant operations. Till date 138 sight restoration
operations have been successfully conducted across the country.
Project Poshan
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RECOGNITIONS
P&G Manila Service Center (MSC) was awarded the 2011 Excellence
in People and Communications - Honourable Mention by the Asia
Shared Services Outsourcing Network (SSON).
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SAMPLE SIZE:
The substantial portions of the target customers that are sampled to achieve
reliable result are 15.
SAMPLE SIZE
15 Customers
SAMPLE TYPE
Area sampling
SAMPLE AREA
Vikhroli (E)
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Collection of data
DATA COLLECTION
Primary Data
Secondary data
PRIMARY DATA:-
SECONDARY DATA:-
they refer the data which have already been collected and analyzed
by someone else.
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DATA ANALYSIS AND INTERPRETATION
The methods of data collection used are both primary data collection and
secondary data collection.
Field work
The field was conducted on 12th and 13th of january, 2013 in vikhroli from 9
am to 6 pm
The period of study was 7 days from 7th of January to 15th of january 2013.
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TABULATION OF DATA
60% HUL
40% P&G
preferrer
40%
60%
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