PROJECT WORK

PROJECT ON FMCG (FAST

MOVING CONSUMER GOODS)

Rnors
ST ves
Sd
Ljuton
Vegetas deep
motsture
Dove
EDAZ

KIPPY
Stock
 Proyect Wok
364
LU
SW
LL
WONEic
 INTRODUCTION
Proect Work 365
Fast Moving Consumer Goods ioods (FMC
sold quickly and at (FMCG)
relas""CG) or
ducts
that are at
relatively low cost. Consumer Packaged Goods
Though the Examples
toiletries and
ft drinks grocery items. include (CPG) are
25 ely small, they, generally sell in
r

large quantities, absolute non-durable

profit made FMCGgoods such on
the so
can b es u b s t a n t i a l

cumulative profit such products on

FMCG have a short shelf life life, either as a
result of products
oduct deteriorates rapidly high consumer
The F McC
demand
because the or
The C sector in India is at
present,
hillion as of 2012. This
the tourth
o f JSD 13 billion
sector is largest sector with a total
e x c e s s

oads are all

FMCGgoods. consumable items that expected to grow to a USD 33 market size in
billion
2015.

by
by a quick rate one needs
regular intervals.industry
of to
items
have consumption and a high return.
buy at
These
in theFMCG
segment are:
bal Leaders
1TC. Hindustan Unilever
Nestle, ITC Limited, Reckitt
Mills. Pepsi, illette, etc. Benckiser, Procter &
G e n e r a l

Gamble, Coca-cola,

DAIRYM I K
nkine Chocola

EST ANALYSIS (FMCG SECTOR)

Pest Analysis (FMCG Sector)

1 GST Regime GDP rate increase

2 Transportation and intrastructure development
along
2 Annual profit of this sector is
in rural areas helps in distribution network S14.72 billion.
3. Restrictions in import policies. 3. Indian FMCG recorded 16% Sales
4.Helps for agricultural sector. Growth in last Fiscal.

4. It is the 4th largest sector of India.

1. Rural employment
. Volume-driven growth in rural market 1. Technology has been simplified,
available in the industry.
Major young population can increase revenue 2. Foreign players help in high
The Indian culture, social and lifestyles are technological development.
changing drastically
 366
Project Work

FMCG Products
A oateR

LAA

tNAND

ROES

Iana

SWOT ANALYSIS (FMCG SECTOR)

S-Strengths
1. Low operational cost

2 Established distribution networks in both urban and rural areas

3 Presence of well-known brands in FMCG sector

W-Weaknesses
1. Lower scope of investing in technology and achieving economies of scale
2. Low export level
3.
3. Counterfoil Products

0-0pportunities
1. Untapped Rural Market
2. Rising Income Levels
 alge Domestic Market
4 . Fxport Potential Project Work 367
ligh consumer goods spending

T-Threats

Bemoval of import restrictions

Slowdown
in rural demands

Tax and regulatory structure

COMPANY PROFILE.

HUL

Hinduatan Unilever
Limitod
AMUL

Amul
TheThe Taste of India

DABUR

Dabur
Celebrate Lite!
 H
HINDUSTAN UNILEVER LIMITED

Cif
GRONT LO1D TOP LOAD

Uomex
Active

Sur Sunlignrt Sur ur

Wheee Sur

Sunlight
NTRODUCTION ProjectWork 369
findustan U n i lever Ltd. (HUL) is
India's
ft is o
Maharashtra. It owned by largest consumer
the
fumbai,

stake HUL.
in HUL Its British-dutch company,goods commpany based in
jority products include Unilever which
52%
nal care products. It is
a
company with heritage goods, beverages controls
p e r s e

o ftwo
,
out of three Indians. 1HUL of over 75 cleaning agents and
lives
works to years in India
look create
better future and touches
the
people
feel good, good and
get more out of
a
life with
brand and everyday and
helps
forthem
as well. as good for others.
goo services that are
Snapshot.
Public Company
Type
BSE: HUL

Industry:FMCG

of stablishment: 1933
Date

H e a d q u a r t e r s :
rs: Mumbai, India
Corporate Address: Unilever House B.D., Sawant
MargChakala, Andheri East, Mumbai - 400099
NMaharashtra.

Business ration: Household & Personal Products

nle: Harish Ma
ey People: Harish Manwani (Chairman) Nitin Paranjpe (CEO & Managin
Revenue: 18,220.27 crore (USS 3.96 billion)
(2009-2010)

Employees: More than 15,000 Direct Emplovees

including more than 1400 managers.
Parentage Company: Unilever PLC
rtaancials: Total Income-223977 4 Million (Year ending March 12)
Company Secretary: Dev Bajpai

Formation.

HUL Was formed in 1933 asLever Brothers India Ltd. and

came
into being in 1956 as
htan Lever Ltd. through a merger ot Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and
aited Traders Ltd. It is headquartered in Mumbai, India and has an emplovee
strength of over
K500 employees and contributes to indirect employment of over 65,000 people. The company
NS renamed in June 2007 as "Hindustan Unilever Ltd. Lever Brother started its actual
operations
andia in the summer of 1888, when crates tull ot sunlight soap bars, embossed with the words
Made in England by Lever Brothers" were shipped to the Kolkata harbour and it began an era
marketing branded Fast Moving Consumer Goods (FMCG) HULs distribution covers over
ilion retail outlets across India directly and its products are available in over 6.4 million
S in the country. As per market research data, two out of three Indians use HUL products
370 Poject Wo
Brands
Home& Personal Care
Under this it has brands that of the
caters to every income segment poy
segment it has brands like: Lakme, Axe, Pepsodent and many more

Personal Wash:
Lux, Lifebuoy, Liril, Hamam, Breeze, Dove, Pears
Laundry
Surt Excel, Rin, Wheel
Skin Care:
Fair & Lovely, Pond's, Vaseline
Oral Care:
Pepsodent, Close-Up.
Colour Cosmetics
Lakme
Tea:
Brooke Bond, Bru
Food:
Kissan, Knoor, Annapurna
Ice Cream:
Kwality Wall's
Hair Care:
Sunsilk Naturals, Clinic Plus
AyurVedic Personal & Health Care:
Ayush
 Annual Turnover...
1he has
company hass over 16,000 employees and has an
2012). HUL is annual turnover
of around 21,736 crore
(Financia/ year 20. a
subsidiary of
Unilever, of
FMCG (Fast Consumer Goods) with strong local
Moving Consumer one the world's
leading suppliers ot
roots in
t h eg l o b e
annual sales of about R46.5 billion
in 2011
more than 100
countries across
Unilever
52%
has about shareholding in HUL.
tObo GHllee
FMAGC

Pampers
Fde
M82- de OAY

Comparison on the Base of Brands Category

SALES
40
35
35 BRANDS
30 CATEGORY
25
20
20
15 17
15
11
10

0
HUL AMUL
DABUR
MAJOR COMPETITORS...
Dracter &Gamble India: P &G India in its
key segment i.e. Detergents and Personal Care.
It operates in India through three subsidiaries.
H Godrej Consumer Products Ltd.: GCPL is the second
with a market share of 9.2%. Personal largest soap player in India after HUL
care includes hair
products shaving cream, etc. care
Dabur India Ltd.: It is an India-based FMCG
company which deals in health care, personal
care and food products.
 378 Project Work

(iv) Colgate-Palmolive (India) ILtd.: It manufactures a range of products

Colgate.
( Marico Ltd.: It has a portfolio on high margin "Beauty & wellness
Mission.. n u t r i l o n , 1yBiene
evervday needs for
to add Vitality to life. Thev
meet
is
ission and Bet
look good
PCtSOnal
care with brands that help peovle feel good,

1A

Innovation... respect
the concerns
oftheir
consumer
needs, they will standards of
CrScientihc
innovation to meet
science applying rigorous
sound
work on the basis of
dumers and society. They
product safety.
Mergers 1993
Company (TOMCO) in April
Erstwhile Tata Oil Mills
(i) 1996
Limited in Jan. 1,
(1i) Brooke Bond Lipton India

(ii) Pond's India (PIL) Ltd. in 1998

Acquisitions...
(i) Brooke Bond in 1984

(ii) Lipton in 1972

(iii) Pond's India Ltd. in 1986

(iv) Lakme Ltd.

US based Kimberly Clark Corporation in 1994.
(v) HUL formed a 50:50 joint venture with
(vi) In 2002, Modern Foods
 'oj Wor 379
A l Rg e s

onpetlion in Core re Categorics 2. Raw Material

umer Income Reduction
Fmerging Player
Advertising Expenditure
6. Price Positioning

ompetitors
focussing single category 8. Consumer Behaviour

ilobal Exposure 10. Changing habits

with competitors Product 12. Traditional habits

onfused
go faster. 14. Challenge conventional wisdom
larther
Gio
a
difterent mind set 16. Make something from waste
Creating
15

nation's nutrition. 18. Give life

to
17Help
improve
an
Extra-flavour
HUL ANALYSIS

S-Strength

i)Variety of Products (i) Distribution Network

(i) Brand Image

(iv) Quality Management

(v)Innovation

W-Weaknesses

with local competitor

(i) Not able to compete

(ii) Not focus on upper class population

(ii) Pricing policy

is not good.

0-0pportunities

i) Huge Market

(ii) Increasing Per Capita Income

ratio
(ii) Increasing consumption
Potential for making more impact of Brand Image
(iv)

T-Threats
(i) High class competitor
(ii) Pantene

(ii) Dabur
(iv) Babool
 380 Propect Work

FUTURE PROJECTs
As competition is increasing day-by-day, it is difficult to maintain leader position and to
further strengthen the distribution network. HUL made a project called "Project Shakti" to:

(A) To Reach: Smal scattered settlement and poorinfrastru

media. Poor Media
(B) To Communicate: Low literacy hampers effectiveness of printing
reach-500 million Indian lack TV & Radio.
(C) To Inluence: Low category penetration consumption.
(D) Awareness: Per capita consumption in Unilever categories is 33% of urban level.

Conclusion
internal market
growth as it depends on an ever-increasing
This sector will continue to see
constant, irrespective of
tor consumption, and demand for these goods remains more or less
a smooth growth path,
recession or inflation. Hence, this sector will grow, through it may not be
of the rupee. This
due to the present world wide economic slowdown, rising inflation and fall
remain robust.
sector will see good growth in the long run and hiring will continue to