PLP Assignment Trimester-4

Submitted By – Sumant Chambial

PG20210183 ( 2112056 )
Ans 1. In terms of performance and preparation for upcoming placement, I believe
Marketing and Business Development Management are the profits for which I am best
suited.
The main reason for this is that I have I have completed my summer internship of 9 weeks of
time period as an marketing intern, and I believe that this is valuable experience will help me
get a job in marketing and business development Management Industry.
The job profile and company I am looking for placement is for the job role of Marketing
Manager in HUL ( Hindustan Unilever ). This profile requires me to develop, monitor, and
implement the marketing plan of responsible products with respect to products mix, market
segments, promotions and advertising, new product development and project management,
and all these things I have learnt during my internship.

Ans 2. Consumers Goods Sector - The consumer goods sector is a category of stocks and
companies that relate to items purchased by individuals and households rather than by
manufacturers and industries. These companies make and sell products that are intended for
direct use by the buyers for their own use and enjoyment. This sector includes companies
involved with food production, packaged goods, clothing, beverages, automobiles, and
electronics. So, basically which company I wish to join or my target is Hindustan Unilever
which comes in FMCG ( Fast Moving Consumer Goods ). All our lives depend on FMCG
(Fast Moving Consumer Goods) products that satisfy our basic needs. FMCG products are
those that have a short shelf life that is produced in high volumes with low cost and are made
for rapid consumption. This industry includes household items, over-the-counter medicines,
food, personal care items, stationery and consumer electronics, etc. The fast-moving
consumer goods (FMCG) sector is India’s fourth-largest sector and has created employment
for more than three million people.
a) Firms in FMCG Sector –

So, if we talk about the firms in this FMCG industry are as follows –
1) Hindustan Unilever
2) Adani Wilmar
3) ITC Ltd.
4) Nestle India
5) Britannia

b) Industry Leaders –

1. Hindustan Unilever -

Hindustan Unilever ( HUL). HUL is one of India’s oldest FMCG companies. It is

a subsidiary of Unilever, a British-Dutch company. The company was established
 in 1933 and has headquarters in Mumbai. HUL has served over 2 billion
customers for over 87 years.
Services Provided by Hindustan Unilever- HUL has over 35 brands across 20
categories such as soaps, detergents, skin care, cosmetics, tea, and toothpaste. The
brand includes famous names like Surf, Excel, Dove, Lux, Lifebuoy, Clinic Plus,
Wheel, Sun silk, Knorr, Axe, etc.

Mission and Vision –

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
the planet.

2. ITC Ltd. –

ITC Ltd. has flourished in the Indian markets for over 110 years giving them a
deep understanding of the Indian Consumer. The ITC is known to guarantee a
certain standard in production and packaging. They have broad distribution
channels in India. This has allowed them to penetrate into even the most rural
areas through several retail shops.

Services Provided by ITC Ltd. - Their products include Bingo, Sunfeast,

Aashirvaad, Fiama Di Wills, Vivel, Savlon soaps and handwash, Papercraft, and
Classmate. ITC has 77% monopoly in the Indian Cigarettes market share and
offers brands like Wills Navy Cut, Gold Flake Kings, Silk Cut, India Kings,
Bristol, Gold Flake Super Star, Gold Flake Premium Lights, Classic Menthol, etc.

Mission and Vision - To enhance the wealth generating capability of the enterprise
in a globalising environment, delivering superior and sustainable stakeholder
value.
Sustain ITC's position as one of India's most valuable corporations through world
class performance, creating growing value for the Indian economy and the
Company's stakeholders.

3. Nestle India –

Nestle is a transnational food and beverage company headquartered in

Switzerland. Globally the company has been around for more than 150 years. In
India, Nestle dates back to 1912 when it began operating as Nestle Anglo-Swiss
Condensed Milk Company. They cater to the nutritional and wellness
requirements of Indian consumers.

Services Provided by Nestle - Nestle sells a plethora of products including

beverages, bottled water, milkshakes, breakfast cereals, instant foods,
performance, health care nutrition, etc. A few of the 2000 brands they currently
own are Nescafe, Maggi, Milky Bar, Kit Kat, Bar One, Milkmaid, Nestea, etc.
 Mission and Vision – Their mission of "Good Food, Good Life" is to provide
consumers with the best tasting, most nutritious choices in a wide range of food
and beverage categories and eating occasions, from morning to night.
Their Vision is to be a leading, competitive, Nutrition, Health and Wellness
Company delivering improved shareholder value by being a preferred corporate
citizen, preferred employer, preferred supplier selling preferred products.

c) Key Performance Indicator for Hindustan Unilever –

 HUL creates employment opportunities for several thousands across its value
chain - from small farmers who provide raw materials, to the distribution
partners who take our products to customers and consumers.
They have 21,000 employees, 31 factories and 15 offices, 8 million+ outlets,
4500 distributers.
 Financial Highlights –
Sales- Rs. 38,273 Cr. ( 2% Domestic Consumer Growth )
EBITA – Rs. 9,600 Cr. ( 6% growth in with 100 bps margin improvement )
Cash from Operations – Rs. 9,700 Cr. ( 11% growth on a comparable basis )
Net Profit – Rs. 6,738 Cr. ( 12% net profit growth )
 Non-Financial Highlights –
152 million people reached through their WASH ( Water, sanitation and
Hygiene ) initiatives.
4.5 million people positively impacted through their community development
initiative, Project Prabhat.
1200 Billion Litres of water conservation potential created through HUF’s
initiative.
39,000 tonnes of post-consumer use plastic waste disposed of using
environment-friendly method.

Percentage of Distributions- The percentage of distribution can be expressed

numerically, or in weight. The analysis of these two combined notions gives the state of the
distribution network of a product and the competitive position of a brand on the various
distribution channels.
 The numeric distribution percentage is the percentage of stores holding my
product in a given geographic area.

It is the ratio of the number of stores distributing my product to the total

number of stores in the zone.

The higher the percentage of numeric distribution, the more my product is in

store. Nevertheless, this data should be analysed regarding the positioning of
the brand. An exclusive brand may choose a selective distribution and will
have a low numeric distribution percentage.
 The analysis of this indicator also changes according to the performance of the
stores given by the weight distribution.

 The weighted distribution percentage corresponds to the turnover part of a

global market for a product category made by the stores distributing my
product.

Indeed, being distributed by stores that provide a large part of the sales of a
category of products is much more interesting.

To draw a complete analysis of these notions, it is necessary to compare them

to one another ~ the goal is for the weighted distribution to be higher than the
numeric distribution.

Holder’s Market Share - Market share in value is an essential indicator; it measures

the power of a company, a brand, or a product in the market. It represents the percentage of
the company’s sales relative to the total sales of the sector.
 Holder market share represents the value of the company in the market
regarding its level of distribution.

It is obtained by dividing the market share in value by the weighted

distribution.

For example, if I hold 5% of the market but my product is only present in 10%
of the stores distributing its category, my market share holder will be equal to
50%.

Holder market share compares the market share of two brands by smoothing
these market shares by the distribution level. The owner’s market share also
makes it possible to quantify what a point of sale can bring, which is always
very useful when it comes to motivating salespeople.

The Consumption Indicators –

 The penetration rate of a product is the percentage of households, individuals
or consumers who buy the product or brand. It is equivalent to the ratio of the
number of current customers to the number of potential customers.

The evolution of the penetration rate of a product is notably studied to

measure the effectiveness of an advertising campaign or a promotional
operation. The penetration rate is also used to measure the potential of a
market still to be conquered.
  The share of wallet is, for a given product, the share of the purchases that the
customers of a mark devote to this mark. It is therefore a reflection of the
loyalty of customers, their commitment to the brand.

If for a brand, the share of wallet is 80% it means that for this type of product
customers of the brand are loyal to it 4 times out of 5, when the purchase
quantities are constant. It allows us to measure the exclusive character of
fidelity.

These indicators and their analysis will influence the decisions of the FMCG
players. To facilitate the adaptation of strategies, it is possible to use Location
Intelligence tools.

Indeed, if the relationship between numeric distribution and weighted

distribution reflects a problem in the distribution of your product, Location
Intelligence gives you instant access to a ranking of points of sale distributing
your product. You can then identify problem areas to assign goals to your
sales force.

In addition, if the penetration rate of your product is low, showing significant

growth potential, and you want to develop your distribution network; or if
your share of wallet rate is low, and you want to find points of sale closer to
your target customers; the Location Intelligence will allow you to determine
without effort the areas corresponding to the socio demographic criteria
representative of your target.

d) Key Drivers of growth –

 The E-commerce Boom – The revolution of technology not just took place in
urban India but rural India as well. There has been a noticeable shift in the
demand of e-commerce due to its wider reach across the country, be it rural or
urban areas. It has the greater consumer convenience as with the help of apps
and websites, consumers can easily select and purchase the products of their
choice and products will be delivered to their homes with the home delivery
option.
 Value Expansion - The retail market in rural India and rise in rural
consumption is also responsible for driving the FMCG market. Its contribution
is 36 percent in the overall FMCG spending. The processed food market of
India is projected to reach US$ 470 billion by the year 2025, from the US$
263 billion in 2020-21. The Indian FMCG industry grew with the support of
consumption led growth and value expansion from higher product prices,
particularly for staples. It witnessed growth in double digits and reached 10.6
percent due to various government initiatives such as hygiene categories, high
agricultural production, reverse migration and packaged staples. There is a
contribution of different categories in FMCG sector such as Household &
Personal Care, tobacco, Food & Beverages and others.
  Role Of Technology - Agility is the pervasive sentiment in the FMCG sector
and technology can provide this agility to the FMCG companies. With the
help of technology, FMCG sector is further planning to improve operational
efficiency, identify new opportunities and manage multifaceted supply chain
requirements. FMCG relies heavily on the market research as it helps the
sector to identify consumer behaviour and field sales professionals. With the
use of advanced field service management software, enterprises leverage the
power of cloud, business intelligence and data analysis to increase the
performance of the sales operation.

e) Merger and Acquisition (M&A) in the sector - M&A is broadly accepted corporate
restructuring procedure in present financial situation. In each industry, organizations
acknowledge this system for their quick development and improvement. In the nation
like India FMCG part is having a major market size. An endeavor has been made in
this study to break down the impacts of M&As in FMCG industry in India.
Hypothetically it is accepted that mergers and acquisition improve organization
performance because of expanded market control, upgraded benefit and hazard
expansion. The research center around the M&A action on FMCG industry which
converged somewhere in the range of 2000 and 2010. Similar research of money
related information of Hindustan Unilever Limited and Emami Limited with
assistance of Ratio Analysis for multi-year prior and multi-year after the M&A was
directed to pick up learning that whether merger had prompted an improved
presentation after the Merger and Acquisition. Secondary data from the yearly reports
was gathered for multi-year prior and multiyear post to the M&As. The study is
finished with the assistance of ratio analysis and interpretation by charts. The study
found that M&As positively affect productivity of acquiring firms of FMCG
organizations in India. There was additionally beneficial outcome of M&A action on
Return on Capital Employed and Return on Net Worth and yet it found that M&A
action has no constructive outcome on Operating overall revenue Ratio and Net Profit
Margin Ratio of chose FMCG organizations. The study found that the measures
utilized for examination that shows in general improvement in the presentation of
chose FMCG organizations in India after M&As.

f) Expected Changes in the Industry –

 Digitalization - Digitization is increasingly becoming a priority for FMCG

brands as customers interact with brands across multiple online and offline
channels. Companies get access to valuable data from these sources, including
various social media platforms, web, and mobile applications. Besides, it also
allows FMCG brands to better engage with their customers and convert one-
time buyers into repeat customers.
 Customer Experience – With the demand for convenience increasing in the
FMCG sector, companies strive to significantly improve customer
experiences. Start-ups employ Augmented Reality (AR) and Virtual Reality
(VR) to make products more engaging and interactive. 3D videos and
gamification attract and entertain customers while providing them with more
 information about the product. Further, investing in improving customer
experiences builds trust and increases brand loyalty. To this end, more and
more FMCG companies are providing higher convenience with digital
technologies.
 E-Commerce – The share of sales coming from e-commerce is increasing
exponentially. The outbreak of the COVID-19 pandemic has further shifted
consumers’ shopping habits towards online channels. Brands are now building
their online presence to boost their engagement with consumers. Social media
also plays a significant role in the world of e-commerce as more items are sold
via social platforms such as Instagram. To this end, FMCG start-ups actively
incorporate diverse media, leveraging mobile and headless commerce, to
market their products.
 Direct Distribution - More and more FMCG companies are leveraging direct
distribution to increase customer loyalty and ensure growth. For example,
manufacturers directly interact with their end customers through their own
online and offline distribution channels. This increases their profit margin and
offers consumers a direct channel to reach their favourite brands. This FMCG
industry trend is closely associated with e-commerce growth as well as the
penetration of smartphones and the internet.
 Block Chain – The competition within the FMCG industry is increasing and
brands invest in blockchain to gain a competitive edge. Smart contracts and
blockchain traceability allows FMCG companies to understand their supply
chain bottlenecks and make necessary interventions. It also increases
transparency for consumers by allowing them to track the source of their
purchases. Additionally, blockchain platforms offer cryptocurrencies and
loyalty programs that allow consumers to collect, exchange, and redeem
points, increasing customer engagement.

Ans 3. Because companies will be hiring for specialist positions in the near future, Firms
are expanding their global workforce to meet this demand, offering opportunities for
specialists, particularly those with who have good critical Thinking and problem solving
skills, adaptability, know the technology and most important an ability to understand buyer
needs and sales process. So, I will be working on my skills like I should know about the latest
trends in market, what are the new products companies going to launch and new innovations
in the Industry. Due to pandemic companies allowed employees for Hybrid work, and most
of the studies have shown that both employers and employees are in favour of continued
flexibility. In order to maintain a healthy work-life balance in a hybrid work environment, I
need to work on my time management skills. Online courses based on marketing which is
present on sites like Coursera, expert etc. to enhance knowledge about the profile of mine and
about the industry. By seeing all the certifications of Online courses completion it make good
impacts over the recruiter and also enhance my skills. In marketing, everything you needs to
be shaped around the buyer and for a Marketing Manager to successfully guide team
members and shape campaigns, they must be able to put themselves in the buyers shoes and
see from their perspective. The FMCG sales skills are the premier skill required to get into an
FMCG industry. Sales skills are supporting the customers who are making purchases and
resolving the issue they are facing. Sales skills not only work with customer satisfaction with
the services but also the overall brand engagement. The individuals are required to have
interpersonal skills to persuade the customer to buy from the brand. And also have a smooth
buying experience. One of the vital skills required in the FMCG industry is understanding
consumer insights. The FMCG industries do not prefer candidates with only core knowledge
and no applicability. Data analysis and problem-solving skills are required to understand
consumer insights to ascertain they return to the brand. The skill allows individuals to
understand the requirements and issues of the consumers and work accordingly on the
solutions. The jobs in FMCG Company seem demanding when individuals cannot work
under pressure. This industry is fast-moving, and the employees need to work at that pace.
They need to make quick decisions, deliver perfect service and think clearly. The individual
should have a wide range of skills to keep up with the fast pace. They need to excel in time
management and organizational skills to deliver the best services at the pace of the company.
When you work in an FMCG company thinking on your feet is highly demanded. The
industry demands quick and effective decisions to solve the market and customer problems.
Critical thinking skills also enhance creativity to explore fresh ideas and reach more clients.
Critical thinking induces problem-solving ability which also helps in discovering what
customers need before they demand it. The problem-solving skills are accompanied and
advanced by data analysis and research skills. These skills help in making effective decisions
in finances as well as in technologically developing the industry.