A

PROJECT REPORT
On

PRODUCT STATERGIES OF FMCG

Submitted To

KURUKSHETRA UNIVERSITY
KURUKSHETRA
In the partial fulfillment of the Bachelor of degree of Commerce in Advertising,
Sales promotion and sales management.

(Session 2010-2011)

Under Guidance of:

Miss Shivani Puri

(Lecturer in Commerce)

Under Supervision of: Submitted By:

Mrs. Vivek Narula Juhi

Lecturer in Commerce. Class: B.Com. II

D.A.V college for Girls
Roll No: 2016
University Roll No.

D.A.V COLLEGE FOR GIRLS

YAMUNA NAGAR
 DECLARATION

I, JUHI here by declare that project report “PRODUCT STATERGIES OF FMCG”. assigned to

me for the requirement of the degree of B.COM with advertising marketing and sales promotion

from Kurekshetra University, is the original work and done by my personally and the

information provided in the study is the authenticated to the best of my knowledge.

The study has not been submitted to any other institution of University for the award of any

degree. If this statement is wrong I shall be personally liable the consequences.

JUHI

B.COM IInd

ROLLNO.2016
 ACKNOWLEDGEMENT

First and foremost I would like to convey my sincere thanks to all mighty God, and then MISS

SHIVANI PURI (lecturer in commerce) of D.A.V GIRLS COLLEGE YAMUNANAGAR. She

has been source of perpetual inspiration to me. She gently guided and inspired me towards a

bright career through my course. I was very fortunate to have herself as my project guide. She is

willing to give all kind of support and encourage me with her valuable suggestions.

I also owe my special thanks to the Principal “MS. SUSHMA ARYA” for providing the project

title “PRODUCT STATERGIES OF FMCG”. The special course with the required equipment in

our college. I am also thankful to MRS. VIVEK NARULA (lecturer) in commerce for helping in

making this project report.

Juhi

B.COM IInd
 PREFACE

The main objective of the project is familiarization with the necessary theoretical inputs and to

gain sufficient practical exposure to establish a distant linkage between the conceptual

knowledge acquired at the institute and practices those concepts.

The project is concerned with the “PRODUCT STATERGIES OF FMCG” .During my

tenure of research, I studied the various development tools and deeply analyzed the functions.

Prior to making reference to working of the project prepared, the analysis and feasibility and all

the other aspect were taken into consideration.

 CONTENTS

Introduction

Introduction to Organization

Industry profile

Approach to study

Objective to study

Research Methodology

Database report Gathered

Data Interpretation and Analysis

SWOT Analysis

Findings and Bibliography

Findings

Limitations

Suggestions

Bibliography

Questionnaire
 INTRODUCTION TO FMCG

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG

products that have a quick turnover, and relatively low cost. Consumers generally put less thought into

the purchase of FMCG than they do for other products. Though the absolute profit made on FMCG

products is relatively small, they generally sell in large numbers and so the cumulative profit on such

products can be large.

FMCG industry is innovative, full of rich experience, reaches world wide, people working with

FMCG may get frequent opportunity to travel meet new culture, gets experience very quickly

and chances to rise in status is much easier

Unlike other sectors FMCG shares float in a steady manner irrespective of market dip world

wide. So basically, fast moving consumer goods are pretty awesome.

This The Fast Moving Consumer Goods (FMCG) industry in India is one of the largest sectors in

the country and over the years has been growing at a very steady pace. The sector consists of

consumer non-durable products which broadly consists, personal care, household care and food

& beverages. The Indian FMCG industry is largely classified as organised and unorganised. This

sector is also buoyed by intense competition. Besides competition, this industry is also marked
by a robust distribution network coupled with increasing influx of MNCs across the entire value

chain sector continues to remain highly fragmented.

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. Examples include food & beverage, personal care,

pharmaceuticals, plastic goods, paper & stationery and household products etc. The industry is

vast and offers a wide range of job opportunities in functions such as sales, supply chain,

finance, marketing, operations, purchasing, human resources, product development and general

management. Global leaders in the FMCG segment are Sara Lee, Nestlé, Reckitt Benckiser,

Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi and Mars etc.

The FMCG industry is volume driven and is characterised by low margins. The products are

branded and backed by marketing, heavy advertising, slick packaging and strong distribution

networks. The FMCG segment can be classified under the premium segment and popular

segment. The premium segment caters mostly to the higher/upper middle class which is not as

price sensitive apart from being brand conscious. The price sensitive popular or mass segment

consists of consumers belonging mainly to the semi-urban or rural areas who are not particularly

brand conscious. Products sold in the popular segment have considerably lower prices than their

premium counterparts. Following are the segment-wise product details along with the major

players:

INDUSTRY PROFILE
Fast Moving Consumer Goods (FMCG)

FMCG are products that have a quick shelf turnover, at relatively low cost and don't require a lot

of thought, time and financial investment to purchase. The margin of profit on every individual

FMCG product is less. However the huge number of goods sold is what makes the difference.

Hence profit in FMCG goods always translates to number of goods sold. Fast Moving Consumer

Goods is a classification that refers to a wide range of frequently purchased consumer products

including: toiletries, soaps, cosmetics, teeth cleaning products, shaving products, detergents,

other non-durables such as glassware, bulbs, batteries, paper products and plastic goods, such as

buckets. ‘Fast Moving’ is in opposition to consumer durables such as kitchen appliances

that are generally replaced less than once a year. The category may include pharmaceuticals,

consumer electronics and packaged food products and drinks, although these are often

categorized separately.

The term Consumer Packaged Goods (CPG) is used interchangeably with Fast Moving

Consumer Goods (FMCG).

Three of the largest and best known examples of Fast Moving Consumer Goods companies are

Nestlé, Unilever and Procter & Gamble. Examples of FMCGs are soft drinks, tissue paper, and

chocolate bars. Examples of FMCG brands are Coca-Cola, Kleenex, Pepsi and Believe. The

FMCG sector represents consumer goods required for daily or frequent use.
The main segments of this sector are personal care (oral care, hair care, soaps, cosmetics,

toiletries), household care (fabric wash and household cleaners), branded and packaged food,

beverages (health beverages, soft drinks, staples, cereals, dairy products, chocolates, bakery

products) and tobacco. The Indian FMCG sector is an important contributor to the country's

GDP. It is the fourth largest sector in the economy and is responsible for 5% of the total factory

employment in India. The industry also creates employment for 3 m people in downstream

activities, much of which is disbursed in small towns and rural India. This industry has witnessed

strong growth in the past decade. This has been due to liberalization, urbanization, increase in the

disposable incomes and altered lifestyle. Furthermore, the boom has also been fuelled by the

reduction in excise duties, de-reservation from the small-scale sector and the concerted efforts of

personal care companies to attract the burgeoning affluent segment in the middle-class through

product and packaging innovations .Unlike the perception that the FMCG sector is a producer of

luxury items targeted at the elite, in reality, the sector meets the every day needs of the masses.

The lower-middle income group accounts for over 60% of the sector's sales. Rural markets

account for 56% of the total domestic FMCG demand. Many of the global FMCG majors have

been present in the country for many decades. But in the last ten years, many of the smaller rung

Indian FMCG companies have gained in scale. As a result, the unorganized and regional players

have witnessed erosion in market share.

HISTORY OF FMCG
In India, companies like ITC, HLL, Colgate, Cadbury and Nestle have been a dominant force in

the FMCG sector well supported by relatively less competition and high entry barriers (import

duty was high). These companies were, therefore, able to charge a premium for their products. In

this context, the margins were also on the higher side. With the gradual opening up of the

economy over the last decade, FMCG companies have been forced to fight for a market share. In

the process, margins have been compromised, more so in the last six years (FMCG sector

witnessed decline in demand).

CURRENT SCENARIO
The growth potential for FMCG companies looks promising over the long term horizon, as the

per-capita consumption of almost all products in the country is amongst the lowest in the world.

As per the Consumer Survey by KSA Techno pak, of the total consumption expenditure, almost

40% and 8% was accounted by groceries and personal care products respectively. Rapid

urbanization, increased literacy and rising per capita income are the key growth drivers for the

sector. Around 45% of the population in India is below 20 years of age and the proportion of the

young population is expected to increase in the next five years. Aspiration levels in this age

group have been fuelled by greater media exposure, unleashing a latent demand with more

money and a new mindset. In this backdrop, industry estimates suggest that the industry could

triple in value by 2015 (by some estimates, the industry could double in size by 2010).

In our view, testing times for the FMCG sector are over and driving rural penetration will be the

key going forward. Due to infrastructure constraints (this influences the cost-effectiveness of the

supply chain), companies were unable to grow faster. Although companies like HLL and ITC

have dedicated initiatives targeted at the rural market, these are still at a relatively nascent stage.

The bottlenecks of the conventional distribution system are likely to be removed once organized

retailing gains in scale. Currently, organized retailing accounts for just 3% of total retail sales

and is likely to touch 10% over the next 3-5 years. In our view, organized retailing results in

discounted prices, forced-buying by offering many choices and also opens up new avenues for

growth for the FMCG sector. Given the aggressive expansion plans of players like Pantaloon,

Trent, Shopper’s Stop and Shoprite, we are confident that the FMCG sector has a bright future.

MAJOR PLAYERS IN FMCG SECTOR

• Britannia India ltd

• Dabur India ltd.

• Marico

• Nirma ltd.

• Cadbury India ltd

• Cargill

• Coca-cola

• Colgate-Palmolive India

• Hj Heinz co.

• HLL

• Nestle

• Pepsi co.

• Procter & Gamble

• Jyothy Laboratories
 TOP FMCG COMPANIES IN INDIA

1 Hindustan Unilever Ltd.

2 ITC (Indian Tobacco Company)

3 Nestlé India

4 GCMMF (AMUL)

5 Dabur India Ltd

7 Cadbury India

8 Britannia Industries Ltd.

9 Procter & Gamble Hygiene and Health Care

10 Marico Industries Ltd.

11 Colgate-Palmolive (India) Ltd.

12 Gillette India Ltd.

15 Johnson & Johnson

17 Nestle

18 Nirma Ltd

Some of the best known examples of Fast Moving Consumer Goods companies are

Reckitt Benckiser(manufacturers of dettol, vanish, strepsils etc.)

Sara Lee(goodknight, hit, kiwi shoe polish, brylcreem)

Unilever(unsilk, dove, lux etc.)

Procter & Gamble

 THE PROFILE OF MAJOR LEADING FMCG MARKET PLAYERS

1. HINDUSTAN LEVER LIMITED (HLL)

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company;

its journey began 75 years ago, in 1933, when the company was first incorporated. In 1931, HUL

set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by

Lever Brothers India Limited in the year 1933 and United Traders Limited in 1935. These three

companies merged to form Hindustan Unilever Limited in November 1956.

In the year 1958 the company was started its Research Unit at Mumbai Factory namely The

Hindustan Unilever Research Centre (HLRC). HUL meets every day needs for nutrition,

hygiene, and personal care with brands that help people feel good, look good and get more out of

life.

The notable thing in company's history is the company became the first foreign subsidiary in

India to offer equity to the Indian public. The company also partaking in sell abroad, the export

business gives a sustain growth to the company in every agenda. The company's Formal Exports

Department was started in the year 1962 and HUL recognized by Government of India as Star

Trading House in Exports in 1992. A turning point to the company was guaranteed in the year

1993, HUL's largest competitor, Tata Oil Mills Company (TOMCO), merges with the company

with effect from April 1, 1993, the biggest such in Indian industry till that time. Merger

ultimately accomplished in December 1994. HUL forms Nepal Lever Limited in 1994, HUL and

US-based Kimberley-Clark Corporation form 50:50 joint venture as Kimberley-Clark Lever Ltd
to market Huggies diapers and Kotex feminine care products. Factory was set up at Pune in

1995. HUL acquired Kwality and Milk food 100% brand names and distribution assets

accordingly HUL introduced Wall's. The company and Indian cosmetics major, Lakme Ltd came

to joint ventures and formed Lakme Lever Ltd and HUL recognized as Super Star Trading House

in1995.

In 1997 Unilever sets up International Research Laboratory in Bangalore and the new Regional

Innovation Centres also came up to existence. A group company, Pond's India Ltd was merged

with HUL on January of the year 1998. HUL believes that an organization’s worth is also in the

service it renders to the community. HUL is focusing on health & hygiene education, women

empowerment, and water management. It is also involved in education and rehabilitation of

special or underprivileged children, care for the destitute and HIV-positive, and rural

development. In 2001, the company embarked on an ambitious program, Shakti. Through Shakti,

HUL is creating micro-enterprise opportunities for rural women, thereby improving their

livelihood and the standard of living in rural communities. The company's spotlight was turned

on to Ayurvedic health & beauty, HUL entered Ayurvedic health & beauty centre category with

the Ayush range and Ayush Therapy Centres 2002.

During the year 2003 the company launched Hindustan Lever Network, a strong initiative by the

company worth of Rs.1800 crore for Direct Selling Channel. The company acquired Marine

business from the Amalgam group companies on March of the same year. In line with company's

business strategy to exit non-core business, the Company has disposed its Mushroom business,

which formed part of KICM (Madras) Ltd and its Seeds Business also in the year 2004.
As of December 2005, Lever India Exports Ltd, Lipton India Exports Ltd, Merry weather Food

Products Ltd, Toc Disinfectants Ltd and International Fisheries Ltd was merged with the

company, both the five companies are wholly owned subsidiaries of the company and Vasishti

Detergents Ltd (VDL) came in to fold of the company as a result of amalgamation of the Tata

Oil Mills Company Ltd, VDL was merged with the company in February, 2006. Modern Foods

Industries (India) Ltd and Modern Foods & Nutrition Industries Ltd was merged with itself as of

September 30, 2006. In March 2007 "Sangam Direct" a non-store home delivery retail business,

operated by Unilever India Exports Limited (UIEL), a fully owned subsidiary was transferred to

Wadhavan Foods Retail Pvt. Ltd (WFRPL) on a slump sale business and also in same month of

the same year the company had carried out Demerger of its operational facilities in Shamnagar,

Jamnagar and Janmam lands into three independent and separate companies, being 100%

subsidiaries of the company known as Shamnagar Estates Pvt. Limited, Jamnagar Properties Pvt.

Limited and Hindustan Kwality Walls Foods Pvt. Limited. In June 2007, The Company has

changed its name from Hindustan Lever Ltd (HLL) to Hindustan Unilever Ltd (HUL).

Hindustan Unilever has been consistently recognized within India and globally by eminent

organizations and the government for its achievements in various fields. The organization has

been recognized among others by TERI, Far East Economic Review, Asian Wall Street Journal

and Business world. More recently, Hewitt Associates ranked Hindustan Unilever among the top

four companies globally in the list of Global Top Companies for Leaders. The Company was

ranked number one in the Asia-Pacific region and in India.

During 2008, Unilever announced its collaboration with the Indian Dental Association (IDA) in

conjunction with World Dental Federation (FDI) through its Pepsodent, leading oral care brand

to help improve the oral health and hygiene standards in India. The Demerger and transfer of

certain immoveable properties of Hindustan Unilever Limited to Brooke Bond Real Estates

Private Limited was an event of the company on April 2008.

HUL has more than 670 live patents and 700 million consumers use HUL brands in India as part

of their daily lives. The company moves with the mission of "add vitality to life" through its

presence in over 20 distinct categories in Home & Personal Care Products and Foods &

Beverages. HUL identified five key platforms and have articulated goals, both short term and

long term goals, stretching to 2015, would work in areas of health & nutrition & women

empowerment on the social front, the economic agenda would be to enhance livelihoods and the

environmental agenda would focus on water conservation and cutting green house gases.

In 2007, Hindustan Unilever was rated as the most respected company in India for the past 25

years by Business world, one of India’s leading business magazines. The rating was based on a

compilation of the magazine’s annual survey of India’s Most Reputed Companies over the past

25 years. HUL is the market leader in Indian consumer products with presence in over 20

consumer categories such as soaps, tea, detergents and shampoos amongst others with over 700

million Indian consumers using its products. It has over 35 brands. Sixteen of HUL’s brands

featured in the ACNielsen Brand Equity list of 100 Most Trusted Brands Annual Survey (2008).
According to Brand Equity, HUL has the largest number of brands in the Most Trusted Brands

List. It’s a company that has consistently had the largest number of brands in the Top 50 and in

the Top 10 (with 4 brands).

Hindustan Unilever's distribution covers over 1 million retails outlets across India directly and its

products are available in over 6.3 million outlets in India, i.e., nearly 80% of the retail outlets in

India. It has 39 factories in the country. Two out of three Indians use the company’s products and

HUL products have the largest consumer reach being available in over 80 per cent of consumer

homes across India. HUL was one of the eight Indian companies to be featured on the Forbes list

of World’s Most Reputed companies in 2007.

HUL has produced many business leaders for corporate India; one of these, Manvinder Singh

Banga, has become a member of Unilever's Executive (UEx). HUL's leadership-building

potential was recognized when it was ranked 4th in the Hewitt Global Leadership Survey 2007

with only GE, P&G and Nokia ranking ahead of HUL in the ability to produce leaders with such

regularity.

Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company, and

estimates that two out of three Indians use its products. It has over 42 factories across India.

HUL is also one of the country's largest exporters; it has been recognised as a Golden Super Star

Trading House by the Government of India.

The Hindustan Unilever Research Centre (HURC) was set up in 1967 in Mumbai, and Unilever

Research India in Bangalore in 1997. Staff at these centres developed many innovations in
products and manufacturing processes. In 2006, the company's research facilities were brought

together at a single site in Bangalore.

HUL also renders services to the community, focusing on health & hygiene education,

empowerment of women, and water management. It is also involved in education and

rehabilitation of underprivileged children, care for the destitute and HIV-positive, and rural

development. HUL has also responded to national calamities, for instance with relief and

rehabilitation after the 2004 tsunami caused devastation in South India.

In 2001, the company embarked on a programme called Shakti, through which it creates micro-

enterprises for rural women. Shakti also includes health and hygiene education through the

Shakti Vani Programme, which now covers 15 states in India with over 45,000 women

entrepreneurs in 135,000 villages. By the end of 2010, Shakti aims to have 100,000 Shakti

entrepreneurs covering 500,000 villages, touching the lives of over 600 million people. HUL is

also running a rural health programme, Lifebuoy Swasthya Chetana. The programme endeavours

to induce adoption of hygienic practices among rural Indians and aims to bring down the

incidence of diarrhoea. So far it has reached 120 million people in over 50,000 villages.

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.

The Global arm of Hindustan Levers Limited is Unilever's and its mission is to add Vitality to

life. Their products meet everyday needs for nutrition, hygiene, and personal care with brands
that help people feel good, look good and get more out of life.

HLL has deep roots in local cultures and markets around the world which gives them a strong

relationship with their consumers, which are the foundation for their future growth. They benefit

from there wealth of knowledge and international expertise to the service the local consumers a

truly multi-local multinational.

BRIEF HISTORY

In the summer of 1888, visitors to the Kolkata harbour 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). 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 HLL in November 1956; HLL 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. 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 HLL's and the Group's

growth curve. Removal of the regulatory framework allowed the company to explore every

single product and opportunity segment, without any constraints on production capacity.

Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the most
visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills

Company (TOMCO) merged with HLL, effective from April 1, 1993. In 1995, HLL and yet

another Tata company, In January 2000, in a historic step, the government decided to award 74

per cent equity in Modern Foods to HLL, thereby beginning the divestment of government

equity in public sector undertakings (PSU) to private sector partners. HLL's entry

into Bread is a strategic extension of the company's wheat business. In 2002, HLL acquired the

government's remaining stake in Modern Foods. In 2003, HLL acquired the Cooked Shrimp and

Pasteurised Crabmeat business of the Amalgam Group of Companies, a leader in value added

Marine Products exports.

PRESENT STATURE

Hindustan Lever Limited (HLL) 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 tones and sales of Rs.10,000 crores. HLL is also one of the

country's largest exporters; it has been recognised as a Golden Super Star Trading House by the

Government of India. HLL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely,

Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr- Annapurna,

Kwality Wall's – are household names across the country and span many categories - soaps,

detergents, personal products, tea, coffee, branded staples, ice cream and culinary products. They

are manufactured in close to 80 factories. The operations involve over 2,000 suppliers and
associates. HLL's distribution network, comprising about 7,000 redistribution stockists, directly

covers the entire urban population, and about 250 million rural consumers. HLL believes that an

organization’s worth is also in the service it renders to the community. HLL is focusing on health

& hygiene education, women empowerment, and water management. It is also involved in

education and rehabilitation of special or underprivileged children, care for the destitute and

HIV-positive, and rural development. HLL has also responded in case of national calamities /

adversities and contributes through various welfare measures, most recent being the village built

by HLL in earthquake affected Gujarat, and relief & rehabilitation after the Tsunami caused

devastation in South India.

HINDUSTAN LEVER claims to practice value-based pricing in which the customers’

perception of the product’s price provides a starting point for developing the marketing mix of

the product. The research department determines this price usually by using focus groups. The

price of Re 1 and 2 for Sunsilk shampoo sachets shows how the price also reflects a concern to

make the purchase more convenient, since the rupee is denoted in this value.

Sunsilk is also available in Rs 45 and Rs 169 price bottles to cater to the demands

keeping in mind the wants of this particular customer segment.

The primary importance of this value-based pricing is that the product demand will be much

higher if its price is in line with the customer’s perception of its value. One crucial concern for

value-based pricing is strict management of cost in order to be able to make a profit at the value-

based price. After the initial price is determined, HINDUSTAN UNILEVER then uses target

costing in order to achieve the required profits.

PROMOTION

• Build top of the line consumers’ awareness.

• Creating a personality of the brand.

Besides having these general objectives, the advertising objectives are set avoiding to the

advertising strategy for each product, e.g. Sunsilk advertising objectives since it was being re-

launched were:

• To increase the usage.

 • Conditioning benefits.

• Makes the hair appear clean and shiny.

• Imparts a feeling of freshness-due to fragrance.

• Easy to manage, silky, soft hair.

• Unique shampoo for every hair type.

• Effectively communicate brand promise.

Promotional strategy

 Innovative campaigns such as ‘Hairapy’ and ‘Life Can’t Wait’ were launched to attract

women to the brand

 Sponsored short films that were broadcast during popular television shows.

 Media platforms used

 Print media

 internet rural campaign

 environment concern ads

 Music videos

 Free sample distribution

 Demo campaigning

 Promotion of the products in the sunsilk range through movies such as “Fashion”

Sunsilk has come up with a new promotional campaign GOOD HAIR DAYS in six major

cities in collaboration with famous hair stylists of the country.

  Sponsorships

 Enhancement of product mix

 New product formulations according to changing consumer preferences

 Advertising

HINDUSTAN UNILEVER believes that messages about product delivered by credible

sources can be very persuasive. Hence Jawed Habib who is an hair care expert endorses Sunsilk

and more value is added to the brand. Consumers relate to products itself, they can relate to a

human being who consumers believe is an expert so Jawed Habib is an expert so is Sunsilk.

Jawed Habib a recognized and highly qualified hair stylist is used by Sunsilk in its ads because

they want to bring out an expert’s image.

MAIN PRODUCT LINE

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 food & beverages. They endow the company with a scale of combined

volumes of about 4 million tonnes and sales of over Rs. 13,000 crores.

HUL has a diverse portfolio of brands offering home care solutions for millions of consumers

across India.

The various segments where HUL has strong presence are as follows:

Food brands
Home care brands

Personal care brands

Water

Nutrition

Health, hygiene & beauty

A brief study of the various product lines is done in the following section.

Food brands:

HUL is one of India’s leading food companies and their products are the leaders in their

respective fields. Some of the food brands are as follows:

Brooke Bond 3 Roses Playful banter, a little mischief, serious conversation…

there’s no time for young couples like the time spent sharing a cup of 3 Roses.’
 Annapurna Partnering with the mom in nurturing her dreams, Annapurna Atta is

aimed at helping her provide wholesome tasty nutrition to her family.

Red Label India’s favourite cup of tea, the great taste of Red Label brings people

closer together and strengthens relationships.

Brooke Bond Taaza Brooke Bond Taaza lifts me and unshackles my mind, allowing

me to see and realize possibilities.

Taj Mahal Brooke Bond Taj Mahal is an exclusive selection of teas for the

discerning consumer.

Bru Ek cup Bru aur mood ban jae…

 Kissan With Kissan, good food is loved not shoved!

Knorr helps families make meal times special, nutritious, tasty and healthy.

Kwality Wall’s A good honest scoop of daily pleasure.

Lipton has a range of vitality teas that truly encompass the goodness of tea.

Home care brands:

HUL has a diverse portfolio of brands offering home care solutions for millions of consumers

across India.
 Active Wheel aims at giving freedom from painful & tiring laundry

Cif targets being the best cleaner to let the utensils shine.

Comfort Is the world’s largest fabric conditioner brand.

Domex Introduced as a strong toilet cleaner that eradicates all the germs.

Rin aims at providing the best whiteness’ which can be demonstrable.

Sunlight is a color care brand

Surf Excel The washing powder brand.

Vim Created in 1885, the Vim brand is placed as a domestic appliances cleaning

brand.

Personal care brands:

HUL’s personal care brands, including Axe, Dove, Lux, Pond's, Rexona and Sunsilk, are

recognised and known by consumers across India. They are aimed at helping to look good.
Aviance provides women with customized beauty solutions.

Axe is a leading deodorant brand.

LEVER Ayush Therapy provides customized ayurvedic solutions.

 Breeze beauty soap targeted towards the lower end of the market.

Clear New Clear is a hair washing shampoo.

Clinic Plus is India’s largest selling shampoo.

Closeup The dental care product.

 Dove is premium beauty soap.

Fair & Lovely Built more than 30 years ago, World’s No.1 Fairness cream.

Hamam Holistic skin care experiences perfected over the ages to deliver

healthy, beautiful skin.

Lakme is an ally to the Indian Woman and inspires her to express her unique

beauty and sensuality. Thus, enabling to realize the potency of beauty.

 Lifebuoy is available in multiple variants in soaps and specialist formats such

as liquid handwash, catering to the entire family.

Liril Awaken, and enliven your senses with a Liril bath.

Lux believes in passion for beauty. It continues to be a favorite with generations

of users for a sensuous experience of luxury.

Pears the purest and most gentle way to skincare!

 Pepsodent India is committed to improve the overall Oral health of Indians.

Pond’s Get the expert to look after your skin

Rexona gives you 24 hr protection from sweat and body odour and therefore

the confidence to handle whatever the day has in store.

Sunsilk encourages young women in India to live for today. Sunsilk helps you

transform the beauty of your hair instantly because LIFE CAN'T WAIT!!
 Vaseline Your skin is amazing. It deserves to be treated as such.

FIVE P’S OF MARKETING

Product

Satisfaction suffices. But delight dazzles the average company will compete for customer by

conforming to her expectation consistently. But the winner will surpass them by constantly

exceeding her expectation, delivering to her door step additional benefits which she would never

have imagined possible. Hindustan Unilever Ltd(HUL) offer such product. The wide variety

products offered by the company include:

The company’s popular product’s include:

• Bathing soaps:

Lux, Lifebuoy, Liril, Hamam, Breeze, Dove, Pears and Rexona

• Laundry items:

Surf Excel, Rin and Wheel

• Skin care:

Fair & Lovely, Pond’s and Vaseline

• Hair care:

Sunsilk and Clinic

• Oral care:

Pepsodent and Close up

• Deodorants:

Axe and Rexona

• Colour cosmetics:

Lakme

• Ayurvedic:

Ayush

• Tea:

Brooke Bond and Lipton

• Coffee:

Bru

• Foods:

Kissan, Annapurna and Knorr

 • Ice cream:

Kwality Wall’s .

Pricing

Make no mistake. Second P of marketing is not another name for blindly lowering prices and

relying on this strategy alone to increase sales dramatically. The strategy used by Hindustan

Unilever Ltd(HUL) is for matching the value that customer pays to buy the product with the

expectation they have about what the production is worth to them.

Hindustan Unilever Ltd(HUL) has launched various products which cater to all customer

segments. So every customer segment has different price expectation from the product.

Therefore maximizing the returns involves identifying right price level for each segment, and

then progressively moving through them.

Physical Distribution – “Place”

BRAND ISN’T THE ONLY ANY MORE. Marketers and finance manager need a new term to

evaluate their business:

Distribution Equity. It takes much more time and effort to build, but once built, distribution

equity is much together to erode.

The fundamental axiom of Indian consumer market is this:

You can set up a state-of –the-art manufacturing facility, hire the hottest strategies on the block,

swamp prime television with best Ads, but the end of it all, you would be know of selling your
products. The cardinal task before the Indian market is managing is to shoe-horn its product on

retail shelves. Buyers are paying for distribution equity not brand equity and market shares.

Why does the company need distribution equity more anything in India? With technology and

competitive pressure slash in it is becoming increasing difficult for marketers to retain a unique

product differentiation for ling period. In a product and price parity situation, the brand that sells

more is the one that reaches the highest number of customers.

India – The operations involve over 2,000 suppliers and associates. HUL's distribution network,

comprising about 4,000 redistribution stockists, covering 6.3 million retail outlets reaching the

entire urban population, and about 250 million rural consumers.television has already primed and

population for consumption, and the marketer who can get to the to the consumer ahead of

competition will give a hard – to – overtake lead. But getting their means managing wildly

different terrains-climate, language, value system, life style, transport and communication

network. And your brand equity isn’t going to help when it comes to tackling these issues.

Own distribution network consist of clearing and forwarding (C&F) agents & distribution

stockiest. This network of distribution can either contact wholesalers and which in turn retailers

or the distributors can contact to the retailers directly.

Once the stock product reaches retailers, the prospective customers can have access to the

product.

Hindustan Unilever Ltd(HUL) distributes the product in the manner stated above.

Hindustan Unilever Ltd(HUL) distribution network has expanded. Beside use of improved

logistics, Hindustan Unilever Ltd(HUL) is also attempting to improve the distribution quality. To

address the issue of product stability, it has installed visi colors at several outlets. This helps in
maintaining consumption in summer when sales usually drops due to the fact that the heal effects

product quality and thereby off takes.

Looking at the low penetration of few products, a distribution expansion would itself being

incremental volume. The other reason is arch rival Procter & Gamble Co. reaches more than a

million retailers.

This increase in distribution is going to be accompanied by reduction in channel costs. Hindustan

Unilever Ltd(HUL) marketing costs, at 18% of total costs, is much higher than Procter &

Gamble Co. The company is looking to reduce this parity level. At Hindustan Unilever

Ltd(HUL), they believe that selling FMCG is it like selling soft drinks.

Promotion

If an advertisement is to communicate effectively, the receiver must at least half want it to, and

be prepared too take step toward the sender. Effective advertising is rarely hectoring or loudly

explicit…. It often both attracts and generates arm feelings. More often than not, a successful

campaign has a stronger element of the unexpected a quality that good advertising shares with

much worthwhile literature.

To penetrate into the inner recesses of her memory, communication must first ensure exposure,

grab her attention evoke her comprehension, grab her acceptance and then extract retention

competing with thousands of other units of communication trying to do the same.

Finding showed that the adults felt too conscious to be seen consuming a product actually meant

for children. The strategic response address the emotional appeal of the band to the child within

the adult. Naturally, that produced just the value vacuum that Hindustan Unilever Ltd(HUL)

was looking to fill. Thereafter it was the job of the advertising to communicate customer the
wonderful feeling that he could experience by re-discoursing the careful, unself conscious,

pleasure – seeking child within himself – a graft these feeling onto the Ad campaign like “hasso

to khul k hasso for close up”, “cream bathing bar for dove soap” and daag ache hai for surf

excel” have been sure shot winner with the audience.

It has also launched Pureit, a home water purifier which supplies drinking water without

boiling/need of electricity , As well as outdoor and radio ads, ad agency contract has created

communication for cinemas and even ATM machines for the brand.

All ICICI’ s ATM a message flashes on the screen as soon as customer insert his ATM card.

Something familiar is planned for phone-book as well. In cinemas, Hindustan Unilever(Ltd)has a

message on-screen just before the lights are dimmed to give them a chance to get their product

There will also be after dinner sampling in restaurants – to begin with, 30 catteries in Mumbai

have been selected.

Ad spend in 2000 was about 14% of sales and the management said that plans to maintain as

spend at this level in the current year also.

Ad since any discussion today would be incomplete without mention ‘e’ word, the management

plans to tap this new channel of marketing. Beside the company website (i.e. www.unilever.com),

that the company has launched, it had also entered into various marketing relationship with other

portals, specially targeted during festivals and events such as Valentines day, etc….

It’s a combination of spiffing up its key brand, researching and improving the newer products

that haven’t taken off, supported with high ad – spends that Hindustan Unilever(Ltd) hopes will

see it emerges stronger after the current slowdown, as well as expand the market.
Positioning

In the 1970s consumers were ready to pay “more for more”, and luxury goods flourished. In the

1980s, consumers began to demand “more for same”, and the discounting era grew strong.

Today’s consumer demanding “more for less”, and the winner will be that super value

marketers…. Some of today’s most successful companies recognize those customers are more

educated and able to recognize true customer value…

Positioning is simply concentrating on an idea – or – even a word defines that company in the

mind of the consumer. It is more efficient to market one successful concept to one large group of

people than 50 product or service ideas to 50 separate group… repositioning is a must when

customer attitude have changed and product have strayed away from the consumer’s long

standing perception of them…

Hindustan Unilever(Ltd) is an anchor in sea of consumer products. As a variety of competitive

claims assails her senses, today customer uses complicated decision making process to assess the

alternative before making a purchase. Since Hindustan Unilever(Ltd) is more clearly associated

with a particular set of attributes in terms of benefits and prices, the quicker becomes her search

process.

Positioning of individual product:

1) Lifebuoy is ‘one of Unilever’s oldest brands’ with more than a hundred-year history, as

www.unilever.com informs. “Lifebuoy has become more than just a red bar of soap –

today the brand provides hygiene and health solutions for families

2) Fair & Lovely, a hot-selling “fairness” cream, which promises a lighter skin tone for

many of India’s complexion-conscious consumers

 FUTURE PROSPECTS

The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the

economy. A well-established distribution network, intense competition between the organized

and unorganized segments characterizes the sector. FMCG Sector is expected to grow by over

60% by 2010. That will translate into an annual growth of 10% over a 5-year period. It has been

estimated that FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs 92,100 crores

in 2010. Hair care, household care, male grooming, female hygiene, and the chocolates and

confectionery categories are estimated to be the fastest growing segments, says an HSBC report.

Though the sector witnessed a slower growth in 2002-2004, it has been able to make a fine

recovery since then.

For example, Hindustan Levers Limited (HLL) has shown a healthy growth in the last quarter.

An estimated double-digit growth over the next few years shows that the good times are likely to

continue.

Growth Prospects

With the presence of 12.2% of the world population in the villages of India, the Indian rural

FMCG market is something no one can overlook. Increased focus on farm sector will boost rural

incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure
facilities will improve their supply chain. FMCG sector is also likely to benefit from growing

demand in the market. Because of the low per capita consumption for almost all the products in t

the country, FMCG companies have immense possibilities for growth. And if the companies are

able to change the mindset of the consumers, i.e. if they are able to take the consumers to

branded products and offer new generation products, they would be able to generate higher

growth in the near future. It is expected that the rural income will rise in 2007, boosting

purchasing power in the countryside. However, the demand in urban areas would be the key

growth driver over the long term. Also, increase in the urban population, along with increase in

income levels and the availability of new categories, would help the urban areas maintain their

position in terms of consumption. At present, urban India accounts for 66% of total FMCG

consumption, with rural India accounting for the remaining 34%. However, rural India accounts

for more than 40% consumption in major FMCG categories such as personal care, fabric care,

and hot beverages. In urban areas, home and personal care category, including skin care,

household care and feminine hygiene, will keep growing at relatively attractive rates. Within the

foods segment, it is estimated that processed foods, bakery, and dairy are long-term growth

categories in both rural and urban areas.

2.GLAXO SMITHKLINE

GlaxoSmithKline is a leader in the worldwide consumer healthcare market. With nearly $5

billion in sales, over ten $100 million brands and present in 130 markets, the consumer

healthcare business brings an added dynamic dimension to GSK. Operating in the fiercely

competitive environment of retail and consumer marketing GlaxoSmithKline Consumer

Healthcare brings oral healthcare, over-the-counter medicines and nutritional healthcare products
to millions of people. Brand names such as Panadol the analgesic, Aquafresh toothpaste,

Lucozade the nutritional and Nicorette/ Niquitin smoking cessation products are household

names around the world. In one year GSK Consumer Healthcare produces - among many others

- nine billion tablets to relieve stomach upsets, six billion tablets for pain relief tablets and 600

million tubes of toothpaste. But the driving force behind GlaxoSmithKline's consumer healthcare

business is science. With four dedicated consumer healthcare R&D centres and consumer

healthcare regulatory affairs, the business takes scientific innovation as seriously as marketing

excellence and offers leading-edge capability in both.

The Company

The company has a challenging and inspiring mission: to improve the quality of human life by

enabling people to do more, feel better and live longer. This mission gives them the purpose to

develop innovative medicines and products that help millions of people around the world. In fact,

they are the only pharmaceutical company to tackle the World Health Organization’s three

‘priority’ diseases – HIV/AIDS, tuberculosis and malaria. Headquartered in the UK and with

operations based in the US, it is one of the industry leaders, with an estimated 7% of the world's

pharmaceutical market. As a company has a emphasized more on research & development,

estimated every hour they spend more than £300,000 (US$562,000) to find new medicines. The

medicines produced are mainly in six major disease areas – asthma, virus control, infections,

mental health, diabetes and digestive conditions. In addition, it is a leader in the important area

of vaccines and are developing new treatments for cancer.

Poland is created with the acquisition of Polfa Poznan by Glaxo Wellcome.

GSK PRODUCTS
Product name:

Aquafresh

ENO

Horlicks

3. COLGATE PAMOLIVE INDIA LIMITED

From a modest start in 1937, when hand-carts were used to distribute Colgate Dental Cream,

Colgate-Palmolive (India) today has one of the widest distribution networks in India – a

logistical marvel that spans around 3.5 million retail outlets across the country, of which the

Company services 9.40,000 outlets directly. The Company has grown to a Rs. 9600 million plus

with an outstanding record of enhancing value for its strong shareholder base. Colgate's tight

focus in Oral Care in India while building its Personal Care business coupled with a simple, but

sound worldwide financial strategy, has helped deliver consistent shareholder value. Colgate

consistently increases gross margin while at the same time reducing overhead expenses. The

increase in gross margin and the reduction in overhead expenses provide the money to invest in

advertising to support the launch of new products, while at the same time increasing operating

profit.

Today, Colgate is a household name in India with one out of two consumers using a modern

dentifrice. Consistently superior quality, innovation and value for money products emerging out

of advanced technology employed, has enabled Colgate to be voted ‘The Most Trusted Brand’ in

India across all brands and categories for the third consecutive year in the Brand Equity AC

Nielson ORGMARG 2005 survey. Colgate has been the only brand to be ranked in the top

three for all the five surveys and to hold the premier position for three consecutive years. This is
a true measure of the trust and confidence that generations of consumers have placed in Colgate

for their oral care needs.

PRODUCTS

Oral Care:

 C olgate – Toothpaste, Tooth Powder, Whitening Products

Pamolive - Shower Gel, Shower Cream, Bar Soap, Liquid Hand Wash,

Shave Preps, Skin Care

Household Care:

Axion Surface Clean

4. BRITANIA

The story of one of India's favorite brands reads almost like a fairy tale. Once upon a time, in

1892 to be precise, a biscuit company was started in a nondescript house in Calcutta (now

Kolkata) with an initial investment of Rs. 295. The company we all know as Britannia today.

The beginnings might have been humble-the dreams were anything but. By 1910, with the

advent of electricity, Britannia mechanized its operations, and in 1921, it became the first

company east of the Suez Canal to use imported gas ovens. Britannia's business was flourishing.

But, more importantly, Britannia was acquiring a reputation for quality and value. As a result,

during the tragic World War II, the Government reposed its trust in Britannia by contracting it to

supply large quantities of "service biscuits" to the armed forces. As time moved on, the biscuit

market continued to grow and Britannia grew along with it. In 1975, the Britannia Biscuit
Company took over the distribution of biscuits from Parry's who till now distributed Britannia

biscuits in India. In the subsequent public issue of 1978, Indian shareholding crossed 60%,

firmly establishing the Indianness of the firm. The following year, Britannia Biscuit Company

was re-christened Britannia Industries Limited (BIL). Four years later in 1983, it crossed the Rs.

100 crores revenue mark. On the operations front, the company was making equally dynamic

strides. In 1992, it celebrated its Platinum Jubilee. The Wadia Group acquired a stake in the

company and became an equal partner with Groupe Danone in Britannia. The subsequent year

saw sales cross landmark 100,000 tones of biscuits or 1 billion packs of 100g. Britannia strode

into the 21st Century as one of India's biggest brands and the pre-eminent food brand of the

country. It was equally recognized for its innovative approach to products and marketing: the

Lagaan Match was voted India's most successful promotional activity of the year 2001 while the

delicious Britannia 50- 50 Maska-Chaska became India's most successful product launch. In

2002, Britannia's New Business Division formed a joint venture with Fonterra, the world's

second largest Dairy Company, and Britannia New Zealand Foods Pvt. Ltd. was born. In

recognition of its vision and accelerating graph, Forbes Global rated Britannia 'One amongst the

Top 200 Small Companies of the World', and The Economic Times pegged Britannia India's 2nd

Most Trusted Brand. Today, more than a century after those tentative first steps, Britannia's fairy

tale is not only going strong but blazing new standards, and that miniscule initial investment has

grown by leaps and bounds to crores of rupees in wealth for Britannia's shareholders. The

company's offerings are spread across the spectrum with products ranging from the healthy and

economical Tiger biscuits to the more lifestyle-oriented Milkman Cheese. Having succeeded in

garnering the trust of almost one-third of India's one billion population and a strong management
at the helm means Britannia will continue to dream big on its path of innovation and quality. And

millions of consumers will savour the results, happily ever after.

PRODUCTS

Britannia Treat proffers a wide variety of flavours, such as the classic favourites Bourbon &

Elaichi, the Fruit Flavoured Creams such as Orange, Pineapple, Mango, and Strawberry, the Jam

Filled Centres under the Jim Jam range, and the Duet Range

Tiger, launched in 1997, became the largest brand in Britannia's portfolio in the very first year of

its launch and continues to be so till today. Tiger has grown from strength to strength and the re-

invigoration.

Britannia Good Day was launched in 1986 in two delectable avatars - Good Day Cashew and

Butter. Over the years, new variants were introduced – Good Day Pista Badam in 1989, Good

Day Chocochips in 2000 and Good Day Choconut in 2004.

Britannia 50-50 is the leader in its category with more than one-third of market share. The

versatile and youthful brand constantly aims to provide a novel and exciting taste experience to

the consumer.

Britannia's oldest brand enjoys a heritage that spans the last 50 years - and going strong.,

Britannia Marie Gold has maintained its stronghold. It is the #1 brand in its category by a long

shot In 1996, Milk Bikis launched a variant called Milk Cream. These round biscuits come with

smiley faces and are full of milk cream that makes them very popular with children.
Before Timepass, Britannia's offering in the salted cracker category was Snax. Launched in

1999, Snax was promoted as a tastier base for toppings through edgy advertising.

Little Hearts was launched in 1993 and targeted the growing youth segment. A completely

unique product, it was the first time biscuits were retailed in pouch packs like potato wafers.

Britannia Nice Time was the pioneer of sugar sprinkled biscuits in India. This unique product

managed to create such a strong consumer pull that soon there was a rush of pretender products

in the market, clearly indicative of the success of the concept.

Till 1958, there were no breads in the organised sector and bread consumption was a habit

typified by the British. Then, a mechanised bread unit was set up in Delhi with the name

"Delbis" which produced sliced bread and packed it under the Britannia name. Thus, Britannia

was not only the pioneer, but also inculcated in the people of Delhi the habit ofating white sliced

bread. The Mumbai unit came up in 1963, and there again Britannia was the first branded bread

in the city.

5. DABUR INDIA

Dabur India Limited is a leading Indian consumer goods company with interests in health care,

Personal care and foods. Over more than 100 years we have been dedicated to providing nature-

based solutions for a healthy and holistic lifestyle. Through our comprehensive range of products

we touch the lives of all consumers, in all age groups, across all social boundaries. And this

legacy has helped us develop a bond of trust with us.

Dabur Health Care Product Range

Dabur

Chyawanprash-

Dabur

Chyawanshakti-

Glucose DDabur

Lal tail-

Dabur Baby olive

oil-

Dabur Janma

Ghunti-

Hajmola Yumstick -

Hajmola Mast

Masala -

Anardana -

Hajmola -

Hajmola candy -

Hajmola Candy

Fun2 -

Pudin hara -

(Liquid and

pearls)

Pudin hara G -
Dabur Hingoli -

Shilajit Gold -

Nature Care -

Sat Isabgol -

Shilajit -

Ring Ring -

Itch Care -

Back-aid -

Shankha Pushpi -

Dabur Balm -

Sarbyna Strong –

Dabur Personal Care Product Range

Amla Hair Oil -

Amla Lite Hair Oil

-- Anmol Silky Black Shampoo

- Vatika Henna

Conditioning Shampoo

Vatika Hair Oil -

Anmol Sarson

Amla -

- Vatika Anti-Dandruff Shampoo

- Anmol Natural Shine Shampoo

Gulabari -

Vatika Fairness

Face Pack -

- Dabur Red Gel

- Dabur Red Toothpaste

- Babool Toothpaste

- Meswakl Toothpaste

- Promise Toothpaste

- Dabur Lal Dant Manjan

- Dabur Binaca Toothbrush

Dabur Foods Product Range

Tastes like eating a

fruit

100% Natural Fruit Juice

Pure natural Honey

Hommade - a range of culinary ingredients giving you 'The taste of Indian Kitchen'.

Lemoneez is a Natural Lemon Juice

Capsico - a fiery red-pepper sauce.

6. GODFREY PHILLIPS

Godfrey Phillips is a company driven by passion - the passion to excel, innovate and win, a

passion to be the leader, to emerge as the most respected company in the tobacco industry, not

just in India but all over the world. Godfrey Phillips is today the second largest player in the

Indian cigarette industry with an annual turnover of over US$ 265 million. Incorporated in India
in 1936, the Company established its own manufacturing facilities in 1944. Today, the operations

span the entire northern and western part of the country, with two manufacturing facilities

located in Ghaziabad (near Delhi) and in Andheri (Mumbai), a state of the art R&D centre in

Mumbai and a tobacco- buying unit in Guntur (Andhra Pradesh). Headquartered in Delhi, the

Company has its sales offices across the country at Ahmedabad, Mumbai, Delhi, Chandigarh and

Hyderabad. The Company today is the proud owner of some of the most popular cigarette brands

in the country like Red and White, Four Square, Jaisalmer, Cavanders, Tipper and Prince. Its

products are distributed through an extensive India wide network comprising 484 exclusive

distributors and over 800,000 retail outlets. Over the years, Godfrey Phillips has emerged as a

professionally managed, highly efficient corporate entity. Today, the Company has one of the

highest productivity rates of workers in the entire country and an enviable organizational

structure. Over the years the Company has also become an active player in overseas markets,

with significant export volumes. Godfrey Phillips has two major stakeholders, one of India's

leading industrial houses - the K.K. Modi Group and one of the World's largest tobacco

companies, Philip Morris. Godfrey Phillips has the strong backing of over 15,000 shareholders in

the Country and is today, through the sheer determination & passion of every employee of the

organization, growing from strength to strength. From its modest beginning in London way back

in 1844, Godfrey Phillips, a major player in the Indian tobacco industry, has come a long way.

The history of the Company reflects the strong determination and passion amongst the founders

& the employees of the Company to establish itself as a leader of the tobacco industry in the

Country.
PRODUCTS

Cigarette

Four Square

Jaisalmer

Red & White

Cavanders

Tipper

North Pole

Prince

Cigars - Brands

Don Diego

Hav-a-tampa

Phillies

Santa Damiana H-2000 Rothschild

7. NIRMA

Nirma is one of the few names - which is instantly recognized as a true Indian brand, which took

on mighty multinationals and rewrote the marketing rules to win the heart of princess, i.e. the

consumer. Nirma, the proverbial ‘Rags to Riches’ saga of Dr. Karsanbhai Patel, is a classic

example of the success of Indian entrepreneurship in the face of stiff competition. Starting as a

one-man operation in 1969, today, it has about 14, 000 employeebase and annual turnover is

above Rs. 25, 00 crores. India is a one of the largest consumer economy, with burgeoning middle

class pie. In such a widespread, diverse marketplace, Nirma aptly concentrated all its efforts

towards creating and building a strong consumer preference towards its ‘value-for-money’
products.

PRODUCTS

Nirma Bath Soap

Nirma Beauty Soap

Nirma Lime Fresh Soap

Nima Rose

Nima Sandal

Nirma Washing Powder

Nirma Detergent Cake

Super Nirma Washing Powder

Super Nirma Detergent Cake

Nirma Popular Detergent Powder

Nirma Popular Detergent Cake

Nirma Shudh Iodized Salt

Nirma Clean Dish Wash Bar

Nima Bartan Bar

8. ITC

ITC is one of India's foremost private sector companies with a market capitalization of over US $

13 billion and a turnover of US $ 3.5 billion. Rated among the World's Best Big Companies by

Forbes magazine and among India's Most Respected Companies by Business World, ITC ranks

third in pre-tax profit among India's private sector corporations. ITC has a diversified presence in

Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods

& Confectionery, Information Technology, Branded Apparel, Greeting Cards, Safety Matches
and other FMCG products. While ITC is an outstanding market leader in its traditional

businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining

market share even in its nascent businesses of Packaged Foods & Confectionery, Branded

Apparel and Greeting Cards. As one of India's most valuable and respected corporations, ITC is

widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source

of inspiration "a commitment beyond the market". In his own words: "ITC, believes that its

aspiration to create enduring value for the nation provides the motive force to sustain growing

shareholder value. ITC practices this philosophy by not only driving each of its businesses

towards international competitiveness but by also consciously contributing to enhancing the

competitiveness of the larger value chain of which it is a part." ITC's diversified status originates

from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-

tested core competencies: unmatched distribution reach, superior brand-building capabilities,

effective supply chain management and acknowledged service skills in hoteliering. Over time,

the strategic forays into new businesses are expected to garner a significant share of these

emerging high-growth markets in India.

Products

Cigarettes

Foods

Lifestyle Retailing

Greeting, Gifting & Stationery

 APPROACH TO STUDY

Objectives of the Study

The research aims at identifying salient features of the Product Mix Strategies adopted by FMCG

companies with reference to HUL in respect of some of their offerings. The following are some

of the specific objectives of the study.

1. To assess the product mix strategy used in consumer market.

2. To evaluate the Product mix strategy of HUL in Indian Market.

3. To determine the customer perception and opinion on product lines offered by HUL

4. To assess the existing and desired product mix in FMCG categories in India.

5. To evolve new possible opportunities for FMCG in Indian market.

Scope of the Study

The scope of the study deals with the area that has been considered in the research. The area

considered in the research is product mix strategies of Hindustan Uni-Lever in Indian Market.

Consumer opinion on the product mix strategy of the HUL is collected with the aid of designed

questionnaire. The sample respondents are selected from the various segments in Bangalore and
Mysore. The collected data is analyzed to meet the research objectives.

RESEARCH METHODOLOGY

Research methodology has many dimension, it includes not only the research method but also
consists the logic behind the methods used in the context of the study and explains why only a
particular method of technique had been used so that search lend themselves to proper
evaluation. At the outset may be noted that there are several ways of studying and tacking a
problem. The formidable problem that follows the task of defining the research problem is the
preparation of the design of research project popularly known as research design.

More explicitly the designing decision happened to be in respect of following:

• What is study about?

• Why is study being made?
• Where will the study be carried out?
• What type of data is required?
• What will be the sample design?
• What period of time will the study include?
• How will the data be analyzed?
• In what style will the report will prepared?

The purpose of this section is to describe the research procedure. This gives the researcher
sufficient support to give his argument for opting certain alternatives and to justify his position.
Research methodology is a way to systematically solve the research problem. It include all those
steps that are generally adopted to solve the research problem.

IT GENERALLY INVOLVES
DATA COLLECTION:
The task of data collection is being after a research problem has been defined and research
designed/plan chalked out. Data collection is to gather the data from the population. The data can
be collected of two types:

• Primary Data
• Secondary data

PRIMARY DATA are those which are collected afresh and for the first time, and thus happened
to be original in character. Methods of primary collection are as follows:
Questionnaire

SECONDARY DATA is being search sites like magazines, newspapers, journals, websites and
the data has been collected through other approaches.

SAMPLE SIZE is 100

METHOD USED IN STUDY

In this study both primary and secondary method of Data collection is used in primary the
observation method and interview method was used Research taken the interview of the retailer
and consumers and find what is the advertising effect on different brand of “FMCG.This is find
out that what type of advertisement, Marketing Strategy attract the consumer. The study is fresh
and for the first time and happen to the original in character.Not used any previous reports of
company in Primary Data.

Secondary Source for collecting data used in this research are internet and from Magazines the
information collected from the retailers and the consumers.
 SOURCE OF DATA

The data source are secondary as well as primary. In secondary, the data consists of information
that already some where that have been collected for another purpose.

In primary source the data consist of original information gathered for the specific purpose.
The cluster sampling technique is decided to collect the data from consultants in Yamuna Nagar
city.

DATA BASED REPORT GATHERED

Data Analysis and Interpretation.

Q1-You are dealing with the FMCG Products from?

No of years No of respondents %age of respondents

5 years 65 65%
5-10 years 25 25%
More than 10 years 10 10%

Interpretation: - Above Table shows that 60% of the dealers selling from 5
years and rest of them more than 5 years that means they are satisfied with
company. So they are doing regularly.

Q2-Which products of FMCG are most preferable by customers?

Product No of respondents %age of
respondents
HLL 32 32%
DABUR 16 16%
NESTLE 20 20%
BRITANIA 8 8%
NIRMA 16 16%
COCA COLA 8 8%
%age of selling of products

HLL
8%
16% 32% DABUR
NESTLE.
8% BRITANIA.
NIRMA
20% 16%
COCA COLA

Interpretation:-This chart is showing that %age of sales of HLLr is 32% which

is more than that of others. It means the selling of HLL is more than that of
other FMCG products

Q3. In which season the selling of products is more?

Months No of respondents %age of
respondents
Jan-March 15 15%
Apr-June 45 45%
July-Sep 5 5%
Oct-Dec 35 35%
 Interpretation:-This chart is showing that in the month of April to June the sales
of FMCG products is very high than that of other which is 4%.it mean it may
after that in the month of October to December the sales of FMCG product is
also more.

Q4.Which factors influence the consumers to purchase the FMCG products?

Factors No of respondent %age of
respondents
Quality 18 18%
Price 14 14%
Sales promotion activities 9 9%
Brand image 54 54%
Services 5 5%
 %age of factors influence consumer to
purchase FMCG product

quality

5% 18% price

sales promotion
14% activities
54% brand image
9%

services

Interpretation:-Brand image is influenced most of the people to purchase the

consumer durable.

Q5. Media plays an important role of making the awareness of the product.
What do you think?

Percentage No of respondents

20%-30% 4

30%-50% 16

50%-70% 36

70%-90% 24
 5%
30% 20% 20%-30%
30%-50%
50%-70%
70%-90%
45%

Interpretation:-60%to 70% of the people get aware from media.

Q6. What are the factors in media which makes the consumer more attentive
towards the new, improved and innovative products and technology?
Factors of media No of respondents %age of respondents
Television 59 59%
News paper 17 17%
Internet 14 14%
Magazine 3 3%
Hoardings 7 7%

% of respondents

3% 7% television
14% news paper
intrnet
59% magazines
17%
hoardings
Interpretation: - the factor in media which makes the consumer more attentive
towards the new, improved and innovative products and technology is Television
which plays important role in advertisement in comparison to others.

SWOT analysis of HUL

SWOT Analysis

Strengths
1. Strong and well differentiated brands with leading share positions
2. Distinctly placed products providing reach to every segment of society.
3. Consumer understanding and systems for building consumer insight
4. Integrated supply chain and well spread manufacturing units
5. 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. Access to Unilever global technology, capability and sharing of best practices from other
Unilever companies.
7. Well placed to take advantage of growth in rural India and lower strata of the society through
“Shakti”.
8. 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.
9. It can be a leader in exports by positioning itself as a sourcing hub for Unilever companies in
various countries.

Weaknesses
1. Price positioning in some categories allows for low price competition like Amul captured
Kwality’s market.
2. Limited success in changing eating habits of people.
3. Competitors focusing on a particular product and eating up HUL’s share, like Nirma focusing
on soaps and detergents.

Opportunities
1. Growing consumer base due to increasing income levels and new consumers from lower strata
of the society
2. Untapped market in branded Ayurvedic medicines and other such consumer products.
3. Opportunity in Food sector: changing consumer tastes
4. Expansion of horizons towards more and more countries

Threats
1. Unfavourable raw material prices due to inflation, reducing profitability.
2. Heavy onslaught of competition in the core categories from emerging players like ITC will
result in higher advertising expenditure
3. Spurious/counterfeit products in rural areas and small towns.
4. Reduction in real income of consumers due to high inflation.

SWOT ANALYSIS OF FMCG

Strengths:

• Well-established distribution network extending to rural areas.

• Strong brands in the FMCG sector.

• Low cost operations

Weaknesses:

• Low export levels.

 • Small scale sector reservations limit ability to invest in technology and achieve

economies of scale.

• Several "me-too’’ products.

Opportunities:

• Large domestic market.

• Export potential

• Increasing income levels will result in faster revenue growth.

Threats :

• Imports

• Tax and regulatory structure

• Slowdown in rural demand

FINDINGS AND BIBLIOGRAPHY

Findings

When responses were taken it was found that many of the people cannot recall advertisements. It
shows lack of proper advertising strategies.

There is lack of sales promotional activities for different age groups like tattoos, quiz contests,
extra weight, toys, etc.
 LIMITATIONS

1. Lack of time is also a limitation in my project.

2. People don’t want to answer the question so it is very difficult make exact results.
3. Some respondents were biased. they are not interested in advertising.

SUGGESTIONS

• Trial packs should be used because customer must have to introduce the product. Once
customer gets idea about product he comes to know advantages of products.
• The products should be cheap the home delivery system to deliver the products so the
delivery should be instant.
• There must be multiple options for purchasing the products for distributers like online,
tale and instant purchasing.
.

CONCLUSION:

The FMCG industry in India is having huge potential to grow. The Industry is now focusing

towards the semi-urban and rural market for growth as there are many remote areas in our

country which are untouched and they don’t have the exposure to number of alternatives or

brands, so by focusing on these aspects of Indian economy the fmcg sector in India has a huge

potential to grow further.

Further,the companies like TATA and HUL are using CSR ie. Corporate social
responsibility to further strengthen their brand or create a positive image in the minds of people

thus it will help in increasing their revenues. The advertising campaigns have also changed to the

changing scenario in Indian economy,and the companies in the fmcg sector are becoming more

cautious on making false claims as the consumer in India has evolved and is more informed than

its ancestors.

According to my views the product or the brand or the company which has a positive

image in the minds of the people and which is innovative in its ideas to fast changing consumer

preference and which gives the best value for price is going to survive in the long run or else

they have to either change their strategy or quit the Indian FMCG market.

BIBLIOGRAPHY

www.adv.in

www.google.com

www.India.com

www.agencytags.com
 QUESTIONNAIRE

What kind of Car Wash do you use?

Branded: ……………………….. Non-Branded………………………

By which media you prefer to watch advertisements?

Television…………………………… Hoardings…………………………
Newspapers……………………….. Magazine………………………….

Others (mention)………………...

Which advertisements you like the most?

……………………………………………………………………………

What factors affects you in advertisements?

Brand ambassador………………… Jingles…………………………………..

Comedy…………………………………. Music……………………………………..

Others……………………………………

Please rate the various attributes of FMCG Products on a scale of 1 to 6 (1 being the
least important and 6 being the most important)

ATTRIBUTES

Price: …………………………

Quality: ………………………….

Packaging: ………………………….

Quantity: ………………………….

Schemes: ………………………….

Availability: …………………………..

Which Soaps do you like the most? (mark from 1-5,5 being most preferred and 1 being
the least preferred)
Rexona……………………………….

Godrej …………………………..

Lux………………………………

Dove……………………………………

Others………………………………

Please fill up something about yourself.

Name: ……………………………………………..

Sex: M/F

Age: 10-15 15-25 25-35 35-45 45 and above

Household income level:

Below 12,000: ……………………….

12,000-15,000: ……………………….

15,000-25,000: ……………………….

25,000 and above: ………………….

Occupation: ……………………………..