Final presentation of Hindustan uniliever of limited

Report on

Company name- Hindustan uniliever limited

Product name-lipton

 Submitted by
NAME- Anmol Kumar singh
 Roll no-Dm19c48
 UID NO -2019290500010001
 Sec-PGDM3
 Retail –(section now)
 Pune institute of Business management
 pune
Contents
SECTORIAL INFORMATION......................................................................................................3
Historical growth /de growth pattern of the sector......................................................................4
Poters”s five forces model for the sector /sub sector /industry assigned.....................................5
Company INFORMATION:............................................................................................................6
SWOT analysis of Hindustan Unilever – HUL SWOT analysis.................................................7
Product/service offered by the company...................................................................................10
news(last 6/12 month)incl. corporate announcement................................................................17
Marketing stratgies...................................................................................................................19
Analyze marketing mix(4p”s/7p”s)of the product/service assigned to you. Lipton product of
marketing mix............................................................................................................................19
Lipton Marketing Mix Strategy 7Ps Analysis.......................................................................20
conduct STP of the product /Service.....................................................................................25
plot the plc of the product/service.........................................................................................27
Based on historical data forecast excepted sales figure of product assigned(which eve r
is more releventfor the next 4 quarter....................................................................................30
SECTORIAL INFORMATION
FMCG Fast-moving consumer goods (FMCG) sector is the 4th largest sector in the Indian
economy with Household and Personal Care accounting for 50 per cent of FMCG sales in India.
Growing awareness, easier access and changing lifestyles have been the key growth drivers for
the sector. The urban segment (accounts for a revenue share of around 55 per cent) is the largest
contributor to the overall revenue generated by the FMCG sector in India However, in the last
few years, the FMCG market has grown at a faster pace in rural India compared with urban
India. Semi-urban and rural segments are growing at a rapid pace and FMCG products account
for 50 per cent of total rural spending. The Fast Moving Consumer Goods
(FMCG) industry primarily deals with the production, distribution and marketing of consumer
packaged goods, i.e. those categories of products that are consumed at regular
intervals. ... FMCG sector in India play a very important role in economy. FMCG in India. ...
The FMCG industry is the fourth largest sector in the Indian economy. Household and personal
care products accounts for 50% of the sales in the industry, healthcare accounts for 31-32% and
food and beverage accounts for remaining 18-19%.The industry is highly competitive due to
presence of multi-national companies, domestic companies and unorganized sector. A major
portion of the market is captured by unorganized players selling unbranded and unpackaged
products. More than 50 per cent of the total revenues of FMCG companies come from products
1
worth Rs 10 or less .This has made the proliferation of localized brands which are offered in
loose form in small towns and rural part where brand awareness is low. Urban India accounts for
66% of total FMCG consumption, while rural India accounts for the remaining 34%. However,
rural India accounts for more than 40% of the consumption in major FMCG categories such as
personal care, fabric care and hot beverage. In the last 10 years, the revenue in FMCG industry in
India has been growing at the rate of 21.4%.[3] There was a drastic change in revenues in FMCG
sector growing from US$ 31.6 billion to US$ 52.8 from 2011 to 2017-2018 respectively.
[4]
 FMCG industry in India is expected to grow at the rate of 27.9% CAGR (Compounded Annual
Growth Rate) to sum to US$103.7 billion by 2020.[1] Additionally, while the urban setting the
rural FMCG market is projected to grow at a CAGR of 14.6% to reach US$100 billion by 2020
and US$220 billion by 2025.[1] The rural setting accounts for 45% revenue share dominates with
55% revenue share of the total revenue of the FMCG industry.[5] More than 65% people in India
stay in rural places and those people spend around 50% of their total expenditure on FMCG
products.[6] The number of people buying consumer goods online in India is projected to reach
850 million by 2025.[citation needed]
Historical growth /de growth pattern of the sector

The FMCG sector has grown at an annual average of about 11 percent over the last decade. The
over all fmcg market is expected to increase at (CAGR)of 14.7 percent to touch us$110.4 billion
during 2012-2020 with the rural fmcg market anticipated to increase at a CAGR of 17.7 percent
to reach us$100 billion during 2012-2025.Food product is the leading segment, accounting for 43
percent come next in terms of market share .

Growing awerness ,easier access, and and changing life styles have been the keys growth drivers
for the consumers market. The Government of india policies and regulatory frame works such as
relaxation of license rules and approval of 51 percent .foriegn direct investment (Fdi)in multiple
brand and 100 percent in single brand retail are some of the ,major growth drivers for the
consumers market.

3.)Explain the reason of growth/ Degrowth pattern observed in the sector.(write in points of
explain each point in 2-3 sentense) .

Ans- 100% FDI allowed in food processing and single brand retail and 51 % in multi
brand retail is also the reason for growth of this sector .

Government initiatives &support like loan walvers ,disbursement through NREGA programme
pradhan mantra jan dhan yojana.

Growth of India FMCG purchased through modern trade is surpassing growth of FMCG
purchased in general trade.

In 2013, market size of the organized FMCG sector was 8% over all the organization retail
market and it si expected to reach30%by 2020.This represent the influence Share of modern
retail over the FMCG sector.

of the modern retail in FMCG sales estimated to be 10%to 12 %by 2016.

FMCG companies are partnering with major retail players to increase brand communication and
Boost their share in modern Retail.
Poters”s five forces model for the sector /sub sector /industry assigned.
The Porter’s 5 Forces tool is a simple but powerful tool for understanding where power lies in a
business situation. This is useful, because it helps you understand both the strength of your
current competitive position, and the strength of a position you’re looking to move into.

With a clear understanding of where power lies, you can take fair advantage of a situation of
strength, improve a situation of weakness, and avoid taking wrong steps. This makes it an
important part of your planning toolkit. Conventionally, the tool is used to identify whether new
products, services or businesses have the potential to be profitable. However it can be very
illuminating when used to understand the balance of power in other situations too.

Company INFORMATION:
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.
Hindustan Unilever Limited (HUL) is the Indian subsidiary of Unilever. It is headquartered in
Mumbai, India. Its products include foods, beverages, cleaning agents, personal care products,
water purifiers and consumer goods. ... The company was renamed in June 2007 as "Hindustan
Unilever Limited".

Stock price: HINDUNILVR (NSE)  ₹2,039.00  -43.65 (-2.10%)

5 May, 3:30 pm IST - Disclaimer

Parent organization: Unilever

CEO: Sanjiv Mehta (10 Oct 2013–)

Customer service: 1800 102 2221

Headquarters: Mumbai

Subsidiaries: Kwality Wall's, Lakmé Cosmetics, MORE

Founders: Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd., United Traders Ltd.

On 17th October 2008 , HUL completed 75 years of corporate existence in India. In January
2010, the HUL head office shifted from the landmark Lever House, at Backbay Reclamation,
Mumbai to the new campus in Andheri (E), Mumbai.

Unilever in Pakistan:

Unilever Pakistan formerly lever brothers was established in Pakistan in 1958.first site in

Pakistan was Rahim Yar Khan. Largest Fmcg Company now operating at six location in
Pakistan. In Pakistan, Unilever have launched many products under different brands. Today,
Unilever are fully integrated in Pakistani life, and are recognized as producers of safe, nutritious
and tasty food, and leaders in developing and uplifting the communities in which we operate. We
at Unilever Pakistan ensure that our products are made available to consumers wherever in the
country they might be. Convenience is at the heart of the uniliever philosophy, and our aim is
to bring products to people's doorsteps.

HUL works to create a better future every day and helps people feel good, look good and get
more out of life with brands and services that are good for them and good for others.
With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin
care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water
purifiers, the Company is a part of the everyday life of millions of consumers across India. Its
portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair
& Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe,
Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pureit.

SWOT analysis of Hindustan Unilever – HUL SWOT analysis

Strengths in the SWOT analysis of Hindustan Unilever ( HUL ):

1) Brand visibility – From soap to mineral water, HUL is shaping the life of 1.3
billion people daily. Being in consumer goods market with its 20 consumer categories such as
soap, tea, detergents, shampoo etc. & each having large assortments, helped HUL in occupying
the large shelf space of Grocery /departmental stores which itself explains the
acceptance/demand of their products in the market.

2) Market leader in consumer goods: According to Nielsen data 2 out of three Indian consumers
use HUL products. HUL used selective targeting strategy to emerge as a market leader in the
Indian market.

3) Innovati4) Extensive & integrated distribution system: HUL’s brands are now household
name which is only possible due to its 4 tier distribution system namely

ve FMCG Company: Hindustan Unilever Research center (HURC),Mumbai & Unilever

Research India, Bangalore ,both research facilities were bought together in a single site in
Bangalore in 2006.Employees in this facility continuously  working & developing innovations in
products & manufacturing processes which is helping the HUL to set it as front-runner in the
consumer goods market.

a) Direct Coverage through common stockist within a town of population under 50000 people.

b) Indirect coverage: Villages closer to larger urban markets have been targeted.

c) Streamline: Leveraging the rural wholesale market to reach markets inaccessible by road.

5) High Brand awareness: By signing popular celebrities for the advertisements of their products
HUL has created positive word of mouth over the ages which helped them in social acceptance
of their products intelligently targeted & meant for different income groups.

6) Product line: It offers product categories namely oral care, personal care, household surface,
fabric care and pet nutrition etc. having deep assortments across the product categories.
7) Financial position: Having more than 80 years of experience in the consumer goods market &
backed by Unilever who owns 67% controlling share in HUL, It is financially strong.

Weaknesses in the SWOT analysis of Hindustan Unilever ( HUL ):

1) Decreasing Market share: Competitors focusing on a particular product & eating up HUL’s

share, like Ghadi & Nirma detergent eating up HUL’s wheel detergent market share.

2) Large number of brands in different product categories: Sometimes having broad

brand portfolio can lead to confused positioning. Price positioning in some categories allows for
low price competition like AMUL captured Kwality’s market share.

Opportunities in the SWOT analysis of Hindustan Unilever ( HUL ): 1) Expanding market: By

penetrating more in the rural markets through its project Shakti AMMA and transition of
unorganized business to organized one will lead to further expansion of the consumer goods
market.

2) Awareness in usage rate of consumer goods: People getting more aware and conscious about
the usage may be through advertising /word of mouth /doctor prescription ,is resulting in
increase in usage rate of the these products.
3) Increasing Income levels: Due to stable political scenario, improved literacy rate & controlled
inflation, disposable income of the people is increasing thereby resulting into upsurge in demand
& changing their lifestyle.

Threats in the SWOT analysis of Hindustan Unilever ( HUL ):

1) Competition in the market: With increasing number of local & national players it’s becoming
very hard for the companies to differentiate themselves from others. There is also threat from
counterfeit products destroying its brand image in the market.

2) Price of commodities: Increasing price of commodities will result in further increase in the

price. Further increase in price will result in decrease in sales, margins & brand switching.

3) Buyers power: With highly diversified consumer goods market where there are lots of brands
claiming different sorts of benefits, it’s very difficult for consumers to stick to a particular brand
& hence results into brand switching where consumer got power to select a brand based on
several factors  like availability, reference group recommendation, preference & price.

Product/service offered by the company

Lipton=Brand Products

Lipton's main pillar brands are 

Lipton Yellow Label and Lipton Ice Tea

. Other product lines exist as well, like the

Lipton pyramid

 range in Europe and North America, and

Lipton MilkTea

 in East Asia. In 2008 the brand launched 

Lipton Linea

 in Western Europe, a green teavariety with a higher level of  catechins, which the company
claims can help one lose weight.

Lipton in

 Pakistan

1948- Lipton launched in Pakistan in tin pack

1949- Lipton discontinued

1955- Lipton reintroduced in Pakistan

1974- Lipton was discontinued due to the government price embargoes

1984- Lipton re-launched in Pakistan with a big bang

1987-Tea bags were added to the Lipton portfolio

1989- Lipton merged with Lever Brothers

1995- Lipton introduces Danedar

1998- Lipton re-launched

1999- Lipton re-launched with improved blend in smaller pack sizes

2000- Re-launch scheduled of Leafier Blend

2006-Lipton launched the Lipton Ice Tea

Reason for Selecting Ice Tea as a Product

Lipton is a British brand of tea, owned by Unilever. Lipton was also a supermarket chain in the
United Kingdom before it was sold to Argyll Foods, to allow the company to focus solely on tea.
The company is named after its founder Thomas Lipton. 

Competitors analysis(List of the competitors of the company and their respective market share)?

Ans- Hul competitors list symbol

a.)Ador multi product ltd- Adomul

2.)bajaj consumer care limited Bajcor

3.)colgate Palmolive( india )ltd colin

4.)Dabur India ltd Dabind

5.)Emami ltd emaltd

6.)Gillette Glind

7.)Godrej consumer product ltd godrco

8.)Hindustan foods ltd Hinfoo

9.)JL Morison India ltd JLMOR

10.) marico ltd MARLTD

11.)paramount cosmetics parcos

12.)Lykis ltd Gretea

13.)Jyoty labs ltd Jyolab

COMPETITORS I

Hul competitors,

Lux .santoor cahndrika

Rexona cinthol mysore

Breeze godrej no.1,nirma

Pears dettol

Lifebuoy santoor

Dove camay

Hamam margo

Competitors -2

Hair care
Hul competitors

Sunsilk pantene

Clinic plus head&shoulders

Dove loreal,garnier

Top of Form

Enter Name Balance Sheet

Compare HUL with another company      
 Bottom of Form

Comparison with Competitors

Standalone

Consolidated

Top of Form

Bottom of Form

Balance Sheet

P&L Account

Cash Flows

Quarterly

Half Yearly

9 Monthly

Yearly

Balance Sheet ------------------- in Rs. Cr. -------------------

HUL Dabur India Godrej Consumer Marico Colgate

Mar '20 Mar '19 Mar '19 Mar '20 Mar '19

Sources Of Funds

Total Share Capital 216.00 176.63 102.22 129.00 27.20

Equity Share Capital 216.00 176.63 102.22 129.00 27.20

Share Application Money 0.00 74.99 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

 3,375.0
Reserves 7,815.00 3,717.20 4,823.94 1,419.55
0

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

3,504.0
Networth 8,031.00 3,968.82 4,926.16 1,446.75
0

Secured Loans 0.00 134.77 0.00 110.00 77.71

Unsecured Loans 0.00 0.00 0.00 0.00 0.00

Total Debt 0.00 134.77 0.00 110.00 77.71

Total Liabilities 3,614.0

8,031.00 4,103.59 4,926.16 1,524.46
0

HUL Dabur India Godrej Consumer Marico Colgate

Mar '20 Mar '19 Mar '19 Mar '20 Mar '19

Application Of Funds

Gross Block 5,569.00 1,714.89 1,539.85 756.00 1,747.60

Less: Accum. Depreciation 0.00 678.27 196.34 0.00 556.75

Net Block 5,569.00 1,036.62 1,343.51 756.00 1,190.85

Capital Work in Progress 0.00 21.69 32.00 0.00 198.70

1,723.0
Investments 1,500.00 2,962.14 3,424.80 31.15
0

1,165.0
Inventories 2,636.00 732.90 615.12 248.57
0

Sundry Debtors 1,046.00 431.46 353.18 465.00 209.79

Cash and Bank Balance 5,017.00 124.71 97.24 80.00 399.35

1,710.0
Total Current Assets 8,699.00 1,289.07 1,065.54 857.71
0
Loans and Advances 3,834.00 269.26 798.70 576.00 348.06

Fixed Deposits 0.00 0.00 0.00 0.00 0.00

Total CA, Loans & 2,286.0

12,533.00 1,558.33 1,864.24 1,205.77
Advances 0

Deffered Credit 0.00 0.00 0.00 0.00 0.00

1,093.0
Current Liabilities 9,955.00 1,341.34 1,643.15 1,019.77
0

Provisions 1,616.00 133.85 95.24 58.00 82.25

1,151.0
Total CL & Provisions 11,571.00 1,475.19 1,738.39 1,102.02
0

1,135.0
Net Current Assets 962.00 83.14 125.85 103.75
0

Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00

3,614.0
Total Assets 8,031.00 4,103.59 4,926.16 4.45
0

Contingent Liabilities 0.00 618.31 3,673.03 0.00 607.89

Book Value (Rs) 37.18 22.05 48.19 27.16 53.19

Bottom of Form

Top of Form

Bottom of Form

Balance Sheet ------------------- in Rs. Cr. -------------------

HUL Dabur Godrej Marico Colgate

 India Consumer

Mar '20 Mar '19 Mar '19 Mar '20 Mar '19

Sources Of Funds

Total Share Capital 216.00 176.63 102.22 129.00 27.20

Equity Share Capital 216.00 176.63 102.22 129.00 27.20

Share Application Money 0.00 74.99 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 7,815.00 3,717.20 4,823.94 3,375.00 1,419.55

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Networth 8,031.00 3,968.82 4,926.16 3,504.00 1,446.75

Secured Loans 0.00 134.77 0.00 110.00 77.71

Unsecured Loans 0.00 0.00 0.00 0.00 0.00

Total Debt 0.00 134.77 0.00 110.00 77.71

Total Liabilities 8,031.00 4,103.59 4,926.16 3,614.00 1,524.46

Dabur Godrej
HUL Marico Colgate
India Consumer

Mar '20 Mar '19 Mar '19 Mar '20 Mar '19

Application Of Funds

Gross Block 5,569.00 1,714.89 1,539.85 756.00 1,747.60

Less: Accum. Depreciation 0.00 678.27 196.34 0.00 556.75

Net Block 5,569.00 1,036.62 1,343.51 756.00 1,190.85

Capital Work in Progress 0.00 21.69 32.00 0.00 198.70

Investments 1,500.00 2,962.14 3,424.80 1,723.00 31.15

Inventories 2,636.00 732.90 615.12 1,165.00 248.57

Sundry Debtors 1,046.00 431.46 353.18 465.00 209.79

Cash and Bank Balance 5,017.00 124.71 97.24 80.00 399.35

Total Current Assets 8,699.00 1,289.07 1,065.54 1,710.00 857.71

Loans and Advances 3,834.00 269.26 798.70 576.00 348.06

Fixed Deposits 0.00 0.00 0.00 0.00 0.00

Total CA, Loans & Advances 12,533.00 1,558.33 1,864.24 2,286.00 1,205.77

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 9,955.00 1,341.34 1,643.15 1,093.00 1,019.77

Provisions 1,616.00 133.85 95.24 58.00 82.25

Total CL & Provisions 11,571.00 1,475.19 1,738.39 1,151.00 1,102.02

Net Current Assets 962.00 83.14 125.85 1,135.00 103.75

Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00

Total Assets 8,031.00 4,103.59 4,926.16 3,614.00 1,524.45

Contingent Liabilities 0.00 618.31 3,673.03 0.00 607.89

Book Value (Rs) 37.18 22.05 48.19 27.16 53.19

news(last 6/12 month)incl. corporate announcement.

Last Updated : May 11, 2020 01:43 PM IST | Source: Moneycontrol.com

Time-1:43, date-11 may 2020

 Buy Hindustan Unilever Limited target of Rs 2305: Sharekhan

 Sharekhan is bullish on Hindustan Unilever Limited has recommended buy rating
on the stock with a target price of Rs 2305 in its research report dated May 08,
2020.
Time-8:19 pm ,Date-9 may

 These 15 stocks from 5 sectors can create value for shareholders: Motilal Oswal

Pharma sector has come out of 3-4 years of base formation. Opportunity is huge both in
US and India. Companies by and large are debt-free and reasonably valued across
valuation parameters. It would surely be advisable to have an exposure to pharma sector,
Hemang Jani, Head - Retail Equity Strategist, Motilal Oswal Financial Services said in an
interview to Moneycontrol's Sunil Shankar Matkar.

Time-12:34 pm, date-12 march

 These 6 'turnaround plays' stand tall amid coronavirus, economic headwinds; do

you own any?

Experts and analysts had just started saying that the Indian market was bottoming out when
the outbreak of coronavirus forced made them to review their stance.

Time-5:33, date-24 feb

 HUL clears proposal to form a new 100% subsidiary

Last Updated : Jan 31, 2020 08:43 PM IST | Source: PTI

 Hindustan Unilever to increase soap prices by 5-6%

Last Updated : Dec 20, 2019 11:06 AM IST | Source: Moneycontrol.com

 Buy Hindustan Unilever target of Rs 2185: Sharekhan

Last Updated : Oct 24, 2019 11:47 AM IST | Source: Moneycontrol.com

 Market likely at new high by Dec, bet on these top 5 stocks among MNCs India
Lite basket'

Marketing stratgies

Analyze marketing mix(4p”s/7p”s)of the product/service assigned to you. Lipton

product of marketing mix
There are marketing mix 4p”s

Marketing Mix of Lipton analyses the brand/company which covers 4Ps (Product, Price,
Place, Promotion) and explains the Lipton marketing strategy. As of 2020, there are several
marketing strategies like product/service innovation, marketing investment, customer
experience etc. which have helped the brand grow.

Marketing strategy helps companies achieve business goals & objectives, and marketing
mix (4Ps) is the widely used framework to define the strategies. This article elaborates the
product, pricing, advertising & distribution strategies used by Lipton.

Lipton Product Strategy:

The product strategy and mix in Lipton marketing strategy can be explained as follows:

Lipton is one of the most popular tea brands in the world. Being Tea brand, Lipton has the
very strong product line in Tea segment only. From green tea to lemon tea, from Ice tea to
Lipton yellow label Lipton has expanded the product portfolio in its marketing mix in
different segments to serve different needs. The Lipton tea is different with the regional
specialty like Lipton has tea from Darjeeling, Sri Lanka, Western Europe, North America
and Australia with different flavor and taste of people of the specific people. The brand
Lipton serves different types of tea’s in its entire product offering. Lipton has different
variety of products as well. Lipton in India has specifically focused on it Tea products
rather than other segments. The brand has an exclusive quality of Tea’s in India for unique
chai lovers.

Lipton Price/Pricing Strategy:

Asia Pacific is the highest consumer of tea in the world. And from Asia, it is India whose
consumption is over 20% of it. As Indian are highly priced sensitive and considering high
competition in the market, Lipton follows competitive pricing strategy. Being one of the
best brands of Tea in India Lipton has concentrated to Indian market considering the huge
potential market. With more value for money, Lipton follows going rate pricing strategy.
For Green tea, without considering tough competition, Lipton charges high prices. The
main targeted segment of Lipton is Middle class and upper middle class so the pricing
strategy is as per the segment.

Lipton Place & Distribution Strategy:

Marketing and selling in nearly 100+ countries can be done if you have very strong supply
chain model for its distribution. The Lipton plants its tea plants in Tanzania and Kenya
with the different variety. India is main targeted country for Tea consumption. The
Unilever and PepsiCo is co-owner for Lipton target their current consumer segment via its
present marketing strategy. Initially, Lipton has focused over Mumbai for their distribution
after that they started expanding. Green Tea was among most sold tea type of Lipton
whose footprint was very high especially from Mumbai to Pune; Lipton has more than 500
distributors.

Lipton Promotion & Advertising Strategy:

Being PepsiCo and Unilever product, Lipton has the extensive marketing strategy.
Television advertisement with different taglines and new innovative emotional marketing
factor is nowadays common for promotion. TV, online ads, newspapers, other print media
channels are among traditional promotional channels for Promotion. Lipton also has high
Social media outreach. Social media marketing for more brand visibility on Facebook,
Twitter and YouTube with the content marketing of the product in magazines is also one of
the strategies. Sponsoring different events has also made Lipton more popular and visible
beverage among tea enthusiastic. This completes the marketing mix of Lipton.

Lipton Marketing Mix Strategy 7Ps Analysis

Marketing Mix of Lipton

Product

Lipton sells its products under 5 broad categories, and each of these serves as separate
product lines. All of its products are sold under the brand name of Lipton.

Lipton sells products with a lot of variety available, which allows customers to select the
product variety that best suits them.

Lipton sells products that are highly differentiated, with various features offered to
customers that competitors don’t offer. Its products are therefore considered to be unique.

Its products are perceived to be of higher quality than that of competitors. Therefore,
customers are willing to pay a higher price for these.

Lipton sells products that are famous for its traditional design that is also practical for
customers to use.
Recommended Product Strategy for Lipton

Lipton should extend additional benefits for purchasing its products that include
warranties, delivery and credit, after-sales service, helpline services etc.

It should introduce new products that are in line with the latest trends in the market. It
should identify opportunities within the market and introduce new products that make use
of these opportunities.

It should test newly introduced products in test markets before going for full
commercialization of these.

It should introduce widen its product portfolio, offering new product lines to fulfill
customer needs.

Lipton should improve its product packaging such that it is more convenient to transport
and use. Its packaging should also be visually appealing so that customers are attracted to
it.

Price

The current pricing strategy to set the price level that Lipton follows is a competitive based
pricing strategy. This is because the data on competitors is easily available due to a large
number of competitors that exists within the industry.

It also takes costs into consideration to set prices for a few products for which either
information is not available on competitors, or are costlier to make,

Lipton sells its products at a higher price than competitors. This is because it offers more
features, and the high price makes up for these.

It currently uses product bundle pricing as well, where products are bundled together and
sold at prices lower than the total of individual items.

It also uses an optional product pricing strategy for certain products, where it offers a price
for the base product and separate prices for the accessories that come along with it.

It charges a greater price for the products it sells online. This is because delivery costs have
been included in the price of the product.

Lipton has fixed the prices of the final product. Channel members; retailers and
wholesalers, buy the product at a lower price and earn through their own margins.

Recommended Price Strategy for Lipton

Lipton should introduce discounts and allowances, where it lowers prices for a short period
of time in order to attract customers and gain market share. It can do this by reducing a
percentage off the price of its products.

Lipton should use psychological pricing where it prices products so that they seem to be
lower; for example, it can price a product worth $100 as $99 as people would consider this
to be lower.

Lipton should introduce new products with a price penetration strategy where it offers an
initial lower price than competitors to gain market share. This will ensure that new
products that are introduced are used by and become more popular than that of
competition.

Place

Lipton has its products present on over 500 retailers throughout the country. It follows an
intensive marketing strategy where it tries to include its products on as many retailers as
possible. This ensures that its products are available to customers easily in different parts
of the country.

Lipton sells its products through two marketing channels. The first is where it sells directly
to its customer through its online website. The second is where it sells to wholesalers who
then sell to different retailers located all over the country. These then sell to its customers.

Lipton has a substantial amount of online sales with frequent traffic on its websites. In
order to run its online operations, Lipton has partnered with numerous delivery service
providers in order to provide timely deliveries.

It follows an omni-channel distribution system where it has integrated its online and offline
stores to allow customers easy access to its products.

Lipton has a network of over 500 suppliers that provide it with the raw materials needed
for production. It has developed a close working relationship with its suppliers allowing
the company to work with them to innovate and introduce new and attractive features on
its products.

Recommended Place Strategy for Lipton

Lipton should open up its shop on social media as well, where it would sell its products on
these platforms along with social media posts. This will allow the company to generate
more sales. Its online shop and social media pages should be integrated in order to provide
easy navigation to its users.

Lipton should focus on improving its online website such that it becomes more user-
friendly and easier to use.
Lipton should ensure that it sells its products to large retailers through personal selling.
These large retailers have grown in recent years and attract a large number of customers.
This would ensure that Lipton increases its sales.

Lipton should open up company-operated retail stores, where it offers all of its products.
This would help save costs for the company as retailer and wholesaler margins would not
exist.

Promotions

Lipton uses multiple media channels to promote its products. It uses traditional media,
which includes an advertisement on television and radio. This is beneficial due to its large
reach and ability to attract a large number of people. It uses online and social media
advertising, which is cheaper and beneficial due to the increasing usage of the internet.

It advertises on various social media platforms with a focus on YouTube, Facebook and
Twitter due to the high monthly usage of these. It has over one hundred thousand likes or
customer following on these pages, which are exposed to frequent content uploaded by
Lipton.

Lipton undergoes various sales promotion taking part in various trade exhibitions and
events around the year.

Lipton undergoes personal selling, with a large sales force to increase its presence in retail
stores.

Lipton uses a percentage of sales method to determine the promotions budget for the year.

Recommended Promotions Strategy for Lipton

Lipton should hire influencers on social media such as bloggers or popular TV/movie stars,
and include them in its advertisements. Bloggers can post content on their social media
pages in order to promote Lipton. TV/movie stars can be included in advertisement
commercials to increase acceptance of the product by customers.

Lipton should initiate an advertising campaign where a consistent message is provided to

customers on all media platforms. This will help increase awareness for the brand within
the minds of the customers.

Lipton should undergo various digital marketing technique in order to improve the online
traffic on its website. These include a banner advertisement, Search Engine Optimization
and creating its blog.

Lipton should make social media posts that are more relevant to its target audience. The
posts should also be such that they encourage further action by customers such as sharing
the posts with friends or leaving feedback in the form of comments. These should
incorporate the latest social media trends such as hashtags, memes etc.

People

Lipton has people working under its sales team that play a vital role in its marketing
efforts. These people have been trained in persuasive techniques, but also to show respect
to the business customers taking into consideration their preferences.

Lipton has people working in its customer service department. These are contacted by
customers in case of any issues within the product, and these people guide customers
through the process of getting the issues resolved. These people are trained to respect the
customers and try their best to get their issues resolved.

Lipton has people working with suppliers to obtain raw materials. These people play a vital
role in maintaining or improving the quality of the final product produced.

Lipton has people working at retail stores who help the customer on site, by answering any
questions or helping them decide the product that best suits their needs.

Recommended People Strategy for Lipton

Lipton should undergo trainings for its sales force, customer services and purchasing
people as these play a vital role in delivering value to the customers.

Lipton should provide incentives to its sales force through bonuses for meeting targets, or
through commissions for the sales made.

Lipton should hire people that show respect towards customers, and are committed to the
company.

Process

Lipton to make sure that its products are always available at retail stores has systems
installed where retailers can notify when their inventory levels are low. Lipton provides
them with more products while ordering its productions to replenish its stock. This ensures
that products are always available to customers when needed.

Lipton has an online delivery process, where orders are received in the computer system
and based on these orders, the relevant product from the inventory is shipped to the
delivery service provider.

Lipton is actively involved in researching market opportunities in order to understand

customer needs. It also develops understanding regarding customer needs through
feedback collected at store, its helpline or social media pages.
Recommended Process Strategy for Lipton

Lipton should use computers across to handle its various process to increase efficiency and
timely delivery to customers.

Lipton should constantly look for ways to innovate and improve its processes in terms of
efficiency and cost. Costs savings would eventually lead to lower prices for its products.

Physical Evidence

Lipton sells its products in a distinct color packaging that easily identifiable on retail
shelves. These are placed on special shelves provided by the company, which also have a
distinct color and design. This makes it easier for customers to locate such shelves in busy
retail stores.

Lipton has an online website that is user-friendly and allows customers to view its products
in high quality images taken from various angles.

Recommended Physical Evidence Strategy for Lipton

Lipton should collect feedback from its customers regarding its packaging so that it could
improve on this.

Lipton should set up its own stores where it provides a shopper-friendly environment and
ambience, encouraging its customers to purchase its products.

conduct STP of the product /Service.

SEGMENTATION

The segmentation is an important step, as by dividing it is easier to position it at the best

level inthe minds of the customers. The segmentation may be done through the variety of
the ways asevery person has its own esteem, physical, and psychological needs. Every
individual has its own resources, location and practices. Divide the whole market into
small parts according to the needs and wants of the customers. A market segment consists
of a group of customers who share a similar set of wants. Segment marketing offers several
benefits over mass marketing. The company can more easily select
the best distribution and communication channels and it will also have a clear picture of its
competitors. Our product is ice green tea which we was launched in Pakistan as it is the
core product of Lipton. And we follow the market segmentation rule. We segmented
Lipton ice green tea according to the needs and characteristics of our product and
according to our customers. "Tea drinkers will really enjoy the new products, and the
flavored ice tea will certainly appeal to youth and active adults who seek refreshment and
healthy benefits in their beverage selection. "The tea used to make Lipton Ice Tea has
antioxidant properties which are associated with good health”.

VARIABLE OF SEGMENTATION

There we have four types of Variables.

Geographic

Demographic

Behavioral

Psychographic

GEOGRAPHIC: Our product is already in different countries of Europe and in Asia like
especially in Turkey. But we are launching iced green tea in Pakistan. While making a
Geographic segment, Lipton Ice Tea selected few cities of pakisthan to launch its product.The
climate of pakisthan Pakistan have two different types Hot and other is cold and we have
selected the Hot climate areas of the country and will provide it in the main cities of the
country like Karachi, Lahore, Multan, Faisalabad, Islamabad, Rawalpindi, HYDERABAD,
SUKHUR and other main cities of the country.’

B.)DEMOGRAPHIC: While making Demographic segmentation,lipton ice tea  has

concluded all the factors including the age, gender, location, income, etc. Age
segmentation includes teenagers and mature customers but lipton ice tea  basically focused
on youth generation. Either it can be male or female.

c.)BEHAVIORAL: While making a Behavioral segment, Lipton ice tea  went through the
process of finding out the frame of mind people have, about the new products that arrive
into the market. People are health consicious in all over survey.

D.)PSYCHOGRAPHIC: By making a glance on the Psychographic segmentation,

psychological concern of people is towards hygiene, environment and taste.

Segment Attractiveness: A product is a unique type of cold drink. So our product has

attractive qualities. It is a pure soft Drink And Has A Taste Of Traditional Green Tea. It Is
Good For Health.

Segment Positioning:

  We fix the price of our different flavor and taste of ice tea according to our customers.
The price of Lipton Ice tea  is Rs.40 and it is available only in tin pack of 330ml.

TARGET MARKETS

Teenagers and young adults

By analyzing the demands of the kind and quality of beverages required by the people
Lipton Ice tea its market.

its flavored iced tea in Lahore, Karachi, Multan and Islamabad, at the same time. And
after that when more people get aware of it Lipton Ice tea will all country in pakisthan.

POSITIONING: The positioning that we are going to set in our target customers is that

The main target is to position the product that is Lipton ICE tea in mind of a customer the
job can be developing awareness that has same nutrient have tea with additional flavours.

LIPTON ICE TEA is a very good flavored nutritious chilled tea. We let people to
understand the benefits of minerals used in it.

Lipton Ice Tea carries a famous brand name. Lipton is very famous and reliable brand so let the
people buy it.

plot the plc of the product/service.

This is a market growth-market share matrix, and the location of our product is determined
by the combination of the two variables.

Lipton Ice Tea makes up the category of

Question  marks 

 since it slaunch therefore has relatively low market share in a high growth market. We do
not know as yet how itwill be perceived by the market but we hope that it will be able to
capture a high market share as the adoption rate of lipton tea increases. STARS

High growth rate & high market share

Lux

Sunsilk

Wall‟s

Fair & lovely

Rafhan

 Energile

QUESTION MARKS

High growth rate & low market share

Clear shampoo  

Rin

Comfort

Dust Peral tea

Lipton Ice Tea

CASH COWS

Low growth rate & high market share

Surf excel

Ponds

Lipton

Close up

Blue band

Lifebuoy soap
Rexona

Knorr

DOGS

 Low growth rate & low

market share

Wheel

 Supreme tea

 Lifebuoy shampoo

BCG of product through out the product life cycle

Question mark Star Cash flows Dog

Introduction GROWTH MATURITY DeCLINE

Lipton Ice Tea in

 product life cycle it is easy to judge that it is at introduction stage. Because

Lipton: is the market pioneer and at this stage its profit is negative or low due to low sale
and high distribution and promotion expenses.

Other major reason is to be introduction is unawareness. The people are not aware to the

Lipton Ice Tea

that’s why

Based on historical data forecast excepted sales figure of product assigned(which eve r
is more releventfor the next 4 quarter.
=FINANCIAL REVIEW 2015

CONSOLIDATED INCOME STATEMENT

’
In this data sales market view of year of 2013-15.these data describe to view the picture of lipton
market share is Indonesia hot tea, or red tea many more. Unilever annual/quarterly revenue
history and growth rate from 2006 to 2019. Revenue can be defined as the amount of money a
company receives from its customers in exchange for the sales of goods or services. Revenue is
the top line item on an income statement from which all costs and expenses are subtracted to
arrive at net income.

 Unilever revenue for the quarter ending December 31, 2019 was $M, a NAN%
increase year-over-year.
 Unilever revenue for the twelve months ending December 31, 2019 was $0M, a NAN%
increase year-over-year.
 Unilever annual revenue for 2019 was $58.218B, a 3.31% decline from 2018.
 Unilever annual revenue for 2018 was $60.21B, a 0.83% decline from 2017.
 Unilever annual revenue for 2017 was $60.714B, a 4.08% increase from 2016.

study of current distribution of marketing channel of company and explain whether

project sales figure can be achieve by the existing distribution of network company?

 CHANNELS OF DISTRIBUTION:
M a n u f a c t u r e r   - - - - - -   Wholesalers---------  R e t a i l e r - - - - - - - - Consumer

channel of distributions according to this brand LIPTON ICE TEA  is simply as shown by
the diagram asmanufacturer to distributors who vary according to geographical dispersion and
then to retailer to final consumer. In these five big cites the company has its warehouses and
from these warehouses the LIPTON ICE TEA is distributed intensively to the all retail out lets
of the cities.

Distribution Issues:

 Factory Distribution  center Retailers customer

PROMOTION STRATEGY:

LIPTON is the promoting the Lipton Ice Tea  at the best of its abilities. The strategies adopted
by it in the foreign countries are practical and therefore the same strategies are planned to adopt
for the launching of this product in Pakistan again. It has beautiful ads. The launch will be
supported

   Advertisement:
To promote lipton ice tea  and to create awareness among the people about the LIPTIN ICE TEA
. . We are doing the advertisement in the following ways.

Paper media:

Lipton promote the product through magazines like Sunday magazines, Akhbar-e-jahan, mag. In

different newspapers such as the news,Dawn, times, jang, nawa-e-waqt .Promotion of the
products in weekly magazines helps to make people aware of the latest offers that can attract

new customers towards them and maintain their loyal customers.

CHANEL OF DISTRIBUTION:

 LIPTON ICE TEA  will use a set of independent organizations that help make this product
available for consumption by the consumer. Unilever uses an indirect marketing channel that
has levels like retailer and wholesaler.

Conventional Marketing Channel:

Lipton Ice Tea  is making full efforts to supply its products to
ultimateconsumers,forthis purpose the company uses the conventional marketing channels of dist
ribution to supply the product. In this method company supply the product to whole seller
who responds it to retailers who supply to ultimate user.

company

Distributors

wholesaler Retailrs

universities Resturants offices houses

 End users application products

study of the digital marketing strategy adopted by the company.Based on the

company.suggest way to digital marketing strategy .
Ans-HUL creates a ‘Digital council’ as it aims to be future ready Consumer goods
major Hindustan Unilever (HUL) has created a full-fledged end-to-end digital transformation
programme that will redefine the ways of working going forward.

Currently, over 80 experiments are underway to accelerate the company's journey on digital
transformation, HUL told the shareholders Saturday. The company has set up a digital council
comprising a cross-functional team of leaders, for its 'Reimagining HUL'. "With the world
changing at a furious pace, we are continually adapting to remain future-fit. We will continue to
leverage Unilever's global knowledge and our deep local understanding to serve our consumers
better be it through path-breaking innovations or our expertise in new channels, chairman and
managing director Sanjiv Mehta said in his address to theshareholders at the 86th AGM. On
the FMCG sector, Mehta said faster economic growth and technological changes provide an
exciting future for the industry. "Key factors like rising affluence, changing family structures,
emerging new large cities and a young working population will positively impact the growth of
the industry," he said. He noted that if the countrycan bend the growth curve and deliver a
consistent growth rate of 9 percent and above, it could transform into a USD 10 trillion economy
by 2032. He noted that HUL's focus is on reimagining itself from the lens of portfolio,
organisation, capabilities and culture. "At HUL, we are creating a culture that embraces
diversity, inclusiveness, and our founders mindset and experimentation. "We have a five-
pronged strategy to continue to thrivedrive purpose into our brands and enhance societal impact,
build a future-fit organisation, nurture talent in the new age, innovate for the future, and
reimagine the business across the value chain by leveraging data and technology," he concluded.
identifying the no of iteams influencing consumer buying behavior .collect the data for
minimum 50 respondent to perform factors analysis name.
Ans- Consumption of Tea has always been a social and more of a habitual concept for most of
the Indian consumers. However, increasing health awareness and prevalent diseases will mark a
boom to the newer variants such as Organic Tea and Green Tea with more natural flavors, Fruits
and Herbal Infusions. Classification Of The Respondents Based On Attractive Packing Of
Various Brand

Brand name No. of .respondents Percentage

Three roses 20 20

Kannan deven 12 12

Green Lable 18 18

Arokia 12 12

Chakra Gold 5 5

Lipton tazza 3 3

Avt assam 5 5

surya 6 6 6 6

Top star 15 15

Gemni 1 1

others 3 3

Total 100 100

Classification Of The Respondents Based On Occupation

Occupation No of respondend percentage

Agriculture 21 21
Business man 38 38
Salried person 24 24
Other 17 17
Total 100 100
TABLE.1 GENDER OF THE RESPONDENTS

Sno Gender No of respondent Percentage

1 Male 163 54%
2 Female 137 46%
Total 300 100

CONSUMPTION OF GREEN TEA OF THE RESPONDENTS S.NO OCCUPATION NO.OF

RESPONDENTS PERCENTAGE (%) 1. Yes 230 77 2. No 70 23 Total 300 100 The above
table shows that majority (77%) of respondents consume Green Tea.

Conclusion:

 The concept of Lipton green tea failed due to a number of reasons including
poor promotion, poor positing and poor pricing strategy. The segmentation and targeting
was not done properly as only the elite class was targeted. These factors led to the fail of
the product.
 Hindustan un liever limited by this Strategy creates a friendly innovative culture, which
makes it possible for the company to depend own work force and in maintaining of Brand
reputation.