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Sachchidanand Agrahari Jindal Nitin Soumya Shalibhadra Lokesh

HUL Introduction
Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods (FMCG) company. HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited. The Company has over 16,000 employees. There are 75 manufacturing locations in India. Annual turnover of around Rs. 21,736 crores (financial year 2011 - 2012). Unilever has about 52% shareholding in HUL. HUL's brands are spread across 20 distinct consumer categories.

Contd.. Brands
With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers. Home & personal care:- Lakme, Axe, Pepsodent, Surf Excel, Wheel, Lux, Dove, Fair & Lovely & many more. Foods & Beverages:- Kissan, Knnor Soups, Annapurna, Kwality Walls, Brooke Bond , Lipton etc. It has also launch water purifier with the name Pureit.

Shampoos
The HUL holds a 44% market share in the Indian shampoo industry. HUL earns almost 8% of its revenue from the sale of these products. There are 6 brands under this category Sunsilk Dove Clinic Plus Clear Aviance TRESemm

Shampoo Market in India

History
The name Shampoo is derived from champo Introduced in Britain by Bengali Entrepreneur Mahomed in 1814. Known as Mahomeds Indian Vapour Baths. Clients received an Indian treatment of champi (shampooing). In India, Shampoo came in to existence in 1960.

Shampoo Market : History


Excise duty decreased from 120% in 1993 to 16% in 2002. Aggressive marketing started in 1993. Market grew 2.5 times from 1994 to 1998. It was worth 85 mn in 2001 Market penetration
Rural: 12% Urban: 36%

Segmentation
Beauty
Sunsilk

Health
Clinic Plus, Pantene

Anti-Dandruff (AD)
Head & shoulder, Clinic all clear

Herbal/Natural
Ayur , Vatica, Nyle

Premium Products
Shehnaz Hussain Revlon Flex L'Oreal

Growth Story
People were afraid of Shampoo due to its chemical usage. herbal shampoos emerged as a significant niche in 1990. Chik (Cavin Care) emerged as price player. Later on, Cavin care as first company to launch sachets shampoo (Chik). By 2004, Shampoo market was Rs. 100 mn. Major drivers of growth were sachets.

Price war In 2003, this industry started facing price war. Aim was to provide value to the consumers. Indian companies like Cavin care and Dabur were the biggest looser.

Current Shampoo market Size in India


Size of shampoo market 950 Cr Anti - Dandruff Shampoo - 20 % of above Sachet Sales - 70 % of above Average Growth over the last few yrs > 20 Expected Average growth over the next few yrs - 25 %

Shampoo Awareness in India


Urban areas - 95 %, accounting for 80 % of shampoo sold in the country Rural areas - 80 %, accounting for 20 % of shampoo sold in the country

Rural market for shampoo


70% of population live in rural India. More than 50% FMCG sales comes from rural markets. 90% sales comes in form of sachets of Rs 1-3. Increasing brand awareness and income. Special focus of FMCG companies in rural india.

Market share in Indian shampoo industry


Others, 5% Dabur, 7%

Cavin Kare, 18%

HUL, 46%

P&G, 24%

STRENGTHS: 1. Low operational costs 2. Presence of established distribution networks in both urban and rural areas 3. Presence of well-known brands in FMCG

WEAKNESSES:
1.Low exports levels. 2.Lower scope of investing in technology and achieving economies of scale, especially in small sectors. 3.Education in rural Market.

OPPORTUNITIES 1. Untapped rural market 2. Rising income levels 3. Large domestic market- a population of over one billion. 4. Export potential 5. High consumer goods spending

THREATS: 1.Removal of import restrictions resulting in replacing of domestic brands 2.Slowdown in rural demand 3.New entrants. 4.spurious goods and illegal foreign imports. 5.Low infrastructure.

Background of Sunsilk
1954 Sunsilk first launched in the UK. 1955 First advertisement of Sunsilk appeared on TV. 1964 Launch of Sunsilk hair spray. 1968 Sunsilk shampoo re-packaged in PVC bottles. 1971 Launch of Sunsilk conditioner. 1975 Sunsilk became the biggest name in hair care. 2003 Sunsilk glossy magazine launched in Argentina. 2006 Social networking site Gang of Girls was introduced in India. Number 1 in Asia, Latin America and the Middle East Sales of more than 1 billion a year. Also sold as Elidor, Hazeline, Seda and Sedal. Awards: Holds the Guinness World Record for the most heads of hair washed and styled in one day.

Thick & Long Shampoo & Conditioner

PRODUCT VARIANTS

Hairfall Solution Shampoo & Conditioner

Clean and Fresh Shampoo

Soft & Smooth Shampoo & Conditioner

Anti-Dandruff Shampoo & Conditioner

Black Shine Shampoo

Contd
Yellow Sunsilk with Bio Proteins from Vegetable Extracts Black Sunsilk with Melanin from Plant Extracts Green Sunsilk with Fruitamins Vitamins from fruit Extracts Pink Sunsilk with yoghurt proteins Orange Sunsilk with active nutrients from Citrus Extracts

Target market of Sunsilk:


The main target market of Sunsilk is females between the ages group 16-40 belonging to the lower and middle income classes. In their promotional activities, they cover the whole market irrespective of these classes. Sunsilk target its market on the basis of consumer buying behavior, income level, and purchasing power of people. Quantity of the product can be changed according to the income and purchasing power of the consumers as in case of Sunsilk 120ml and 5ml packs are also available to target low income groups.

THE MARKETING MIX (5Ps)


PRODUCT: Sunsilk is a twenty-plus urbanite girl, shes charismatic, confident, approachable and a go getter. She portrays a perfect 21st century woman who makes her dreams come true by sheer hard work. The quality of the product is maintained through extensive chemical testing which takes place after every month. Thus Sunsilk secures its place in the consumer mind by frequent innovations in the product and maintaining its quality. PLACEMENT: Being a mass product with a market penetration of about 90%, Sunsilks aim is to be the supplier of choice for its customers The product reaches the end consumer through retailers, supermarkets and small stores. Its easy availability is of the factors that determines its high consumer demand. Unilever makes sure that the product reaches every consumer by its strong.

Packaging: Sunsilks approach to responsible packaging seeks to take into account environmental, social and economic considerations. Sunsilk is known for its bright, catchy colors which instantly attract a customer so that they can spot a Sunsilk bottle from a vast array of different shampoos. The colors also go along with the brand image of Sunsilk which portrays an outgoing personality of a young woman. Thee 5 key elements towards packaging are Remove Reduce Reuse Renew Recycle

PRICE: Sunsilk is the market leader and it therefore sets the market price. The research department determines this price usually by using focus groups, hence taking into account the affordability of the product by people of all incomes. Unilever makes use of a process known as demand planning to estimate local demand. Through this technique they keep track of the weekly sales and production- sales going out and stock coming in. PROMOTION: It uses a combination of channels, which includes product labels, websites, call centers and/or consumer leaflets to communicate openly with the consumers. It has introduced new marketing guidelines limiting advertising to children under 12 and banning the use of 'size-zero' models. To promote its brand, Sunsilk distributes flyers and free sachets at the road side and at malls, and door to door campaigning.

Communication Tools of Sunsilk


Electronics Media-Electronic Media has been the major factor in determining the glob al success of Sunsilk. In todays world where an average middle clas s individual has access to 30 to 40 channels through the cable minimum. Print Media-The print media including the magazines, newspapers and brochure. BillboardsSunsilk has nearly all of its products on the bil lboards when either its launching a new ad, coming up with price promotions or re launching any product. Giving out free Samples- Sunsilk black introduction into the market made them to create awareness amongst the youth, they went to schools and colleges and distributed free samples of the products and gave out little brochures.

Consumer responses to Sunsilks advertisements


60.00% 54.55% 50.00%

40.00% 33.33% 30.00%

20.00% 12.12% 10.00%

0.00% Attractive Average Cheap

Internet Marketing
Online marketing, also known as online advertisement, internet marketing and e-marketing. Online advertising uses the Internet and World Wide Web to deliver marketing messages to larger audience and attract customers It refers to using the power of Internet advertising to generate a response from target audience. Online marketing is used by companies selling goods and services directly to consumers. Internet marketing can also be broken down into more specialized areas such as Web marketing, email marketing and social media marketing: i. Web marketing includes e-commerce Web sites, affiliate marketing Web sites, promotional or informative Web sites, online advertising on search engines, and organic search engine results via search engine optimization (SEO) ii. Email marketing involves both advertising and promotional marketing efforts via e-mail messages to current and prospective customers iii. Social media marketing involves both advertising and marketing (including viral marketing) efforts via social networking sites like Facebook, Twitter, YouTube and Digg etc.

Different fields / areas of marketing within internet marketing:Affiliate Marketing Display Advertising Email Marketing Interactive Advertising Search Engine Marketing Online Public Relations Social Media Optimization

Advantages of Online Marketing


Internet marketing is inexpensive: companies can reach a wide audience for a small fraction of traditional advertising budgets. The nature of the medium allows consumers to research and to purchase products and services conveniently. Internet marketers also have the advantage of measuring statistics easily and inexpensively; almost all aspects of an Internet marketing campaign can be traced, measured, and tested. The advertisers can use a variety of methods, such as pay per impression, pay per click, pay per play, and pay per action. The results of campaigns can be measured and tracked immediately because it require users to click on an advertisement, to visit a website, and to perform a targeted action

It helps in spreading the business worldwide with no geographical barriers It is a 24X7 (365 days) open store where people are welcome to shop anytime from anywhere. It also helps in creating credibility and gain trust and confidence of the customers. Many people use internet for the pre-purchase of products and services It also helps in updating the subscribers through a fast mode of e-mails. Visitors get up-to-date information on each visit.

Disadvantages of Online Marketing


o o o o Higher transparency of pricing and increased price competition Worldwide competition through globalization Security, privacy issues Easier to have outdated information on internet, update timing is a critical issue here. o There is a lot of competition in the market and by the time visitor reaches the product they have already gone through many links o It can leave the businessman feeling isolated because the world wide web is faceless, cold and inhuman. This can leave customer feeling isolated and very inward. o Information Overload: There is lot of information on the world wide web. There can be too much of good information about the companies. This can leave customers more confused than before. Customer might not be able to tell who to chose.

Rich & Informative Content


The site is a rich reservoir of articles on hair styling, hair care, fashion trends, beauty secrets, relationships and more. Additionally, the website features blogs by female celebrities giving users insight into the lives and minds of their idols. The site is well equipped with the latest entertainment updates presented by MSN India. The website in association with Astro Life presents users their daily horoscope along with other astrological insights. An association with Monster Jobs allows the site to present users with hot career opportunities for them to explore. Replicating Success across Asia The success of Sunsilk Gang Of Girls, over the years, has given way to the launch of Gang Of Girls websites for each of a number of countries in South and South-East Asia.

SUNSILK GANG OF GIRLS

What is it about?
Sunsilk Gang Of Girls' is the first ever concept of its kind This online world of Sunsilk is aimed at providing a retreat to them (young girls) wherein they can connect over shared passions. Meticulous research and strenuous effort have gone into creating a website that should both fascinate and benefit young girls across India and even beyond. We're thrilled to launch this community as we see it as Sunsilk's defining interface for its consumers." - Vipul Chawla, Category Head - Hair Care, Hindustan Lever Ltd., in June 2006.

What Sunsilk GoG offered


HUL identified key topics that were of interest to the target group, such as: Fashion Job hunting Having Fun Emotional Bonding Gossip, etc.

Execution of the strategy


Platforms for Self-Expression
GOG TV enables girls to upload and share their videos. It has features like the moviemaker create her own movie by using preshot movie clips. It also features the slideshow maker; where a user can upload pictures and give it various transitions along with background music. Get Spotted is yet another platform for girls to showcase their talents in performance art, writing etc. and win prizes based on how other users rate their talents. Furthermore, the Life Cant Wait tools give users a unique and creative space wherein they can express to other users their lifes defining moments as well as their goals and dreams. The Be A DJ feature in the Rhythm Lounge allows users to express themselves musically they can create their own music mixes by mixing an matching pre-recorded instrumental tracks.

Space to Interact with Other Users Girl Talk is one of the most active sections of the website. It is a forum that gives girls the space to discuss everything from hair & fashion to the latest in entertainment. Ask the girls is a special feature introduced with the understanding that girls often have questions that only other like-minded girls can answer. The site therefore has given its users the space to ask around. From fashion to sex to sports the girls can ask questions under specified categories and get them answered by other girls. The website in association with MSN India has also introduced its very own mail and chat service available exclusively to girls on the website.

Interactive Tools & Applications


The Complete Makeover Machine is a breakthrough tool that allows users to give themselves head-to-toe virtual makeovers by experimenting with the trendiest hairstyles, outfits and accessories. The site is further equipped with exciting games that users can play over and over again. A handy desktop application the Sunsilk Buddy keeps users abreast of the latest happenings on the site and gives them the means to update various sections of the site through the application itself.

Spirit of Ganging
Ganging is alive and blazing ahead on the site and this can be seen in the core site sections that focus on the spirit of ganging. The Gang Blogs for instance allows users to blog as a gang thereby each blog reflects the collective opinion of the various gang members that author it. Gang Wars is yet another fun activity that gangs can partake in each month. Gangs get to compete against one another in games and the winning gang is awarded exciting prizes. Gangs are also given the space to seek out new members and website newbies can find themselves a suitable gang by placing classified ads in the classifieds section of the site.

Rich & Informative Content


The site is a rich reservoir of articles on hair styling, hair care, fashion trends, beauty secrets, relationships and more. Additionally, the website features blogs by female celebrities giving users insight into the lives and minds of their idols. The site is well equipped with the latest entertainment updates presented by MSN India. The website in association with Astro Life presents users their daily horoscope along with other astrological insights. An association with Monster Jobs allows the site to present users with hot career opportunities for them to explore. Replicating Success across Asia The success of Sunsilk Gang Of Girls, over the years, has given way to the launch of Gang Of Girls websites for each of a number of countries in South and South-East Asia.

Results from GoG


100,000 registration within 36 days By January 2007, 350,000 registration and 26,000 gangs. The result could not be seen directly in the current year sales but company was able to keep in touch with customer constantly. Because of this success company decided to carry this project on global level. One more project was proposed for rural area called sahelian.

Contributor in the success of GoG


GoG gave the first mover advantage to HUL in online social media. Youth customer believe more on view shared by other rather than advertising and marketing. Feedback from the makeover machine kept company updated regarding their personal care product Help the company to find a new way to promote as importance of TV was reducing.

Criticism
After some time of launch of site the traffic was very low on the site. Critics said that company could not able to retain the interest of TG therefore they decide to take it global. Some critics said that this activity alienate male customer of shampoo.

Challenge of GoG

Retaining the interest of customer New content for the website Difficult to find ROI on the project

Re-launch of GoG
creation of new 'gangs' feature is deactivated 'forums' where members can discuss hair and fashion related issues with each other. Face book page Twitter page.

Future initiative
Yes, There will be more initiatives like this. As the effectiveness of other medium of promotion are decreasing ROI from TV advertising is reducing. For FMCG products companies always need unconventional medium of promotions. 5 % of advertising budget on online Active on face book.

2. Reasons for marketers using online and other non-conventional media


Mobility:
Online marketing goes where the consumer goes

A Global Reach:
Can reach global audience Traditional Advertising reach is limited to local populations

Reasons for marketers using online and other non-conventional media Contd
Measurable Outcomes:
Search Engine Optimization (SEO) allows one to measure the effectiveness of online advertising campaigns
Indexation Metrics Backlinks Ratings Traffic

Reasons for marketers using online and other non-conventional media Contd
Cost Effectiveness
Cheaper than traditional advertising approaches Can reach an unlimited number of consumers

Targeted Audience
Traditional advertising campaigns are unable to offer precision marketing. Ex: Mass mailing Online marketing strategies can help place your ads to attract desired customers. Ex: Google Ad words

Does it mean that the role of TV and other traditional media has diminished?

Certain Brands are more suitable for online than others???

Thank You