“An in-depth study on FMCG channel management and

compare HUL and P&G channel marketing /management”

MBA Programme 2019-2021 (Sem-IV) In partial fulfilment

of the requirement for Comprehensive Project

Project guide: Submitted by:

Prof. Paresha Parekh Ashok Banjara (198200592001)
Umesh Varma (198200592036)
 Table of Content
• Introduction of company's
• Objective of the study
• Overview of world market and Indian market
• Research Methodology
• FMCG companies in market
• Distribution channel of HUL and P&G
• Data analysis
• Finding and Conclusion
• Bibliography
 Introduction of companies
HUL
• Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer
Goods company with a heritage of over 80 years in India.
• With over 35 brands spanning 20 distinct categories such as soaps, detergents,
shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee,
packaged foods, ice cream, and water purifiers, the Company is a part of the
everyday life of millions of consumers across India
• Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf
Excel, Rin, Wheel, Fair & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic
Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan,
Kwality Wall’s and Pureit.
• The Company has about 18,000 employees and has sales of INR 37660 crores
(financial year 2018-19). HUL is a subsidiary of Unilever, one of the world’s
leading suppliers of Food, Home Care, Personal Care and Refreshment
products with sales in over 190 countries and an annual sales turnover of €51
billion in 2018. Unilever has over 67% shareholding in HUL.
 History of HUL
• 1931 Hindustan Vanaspati Manufacturing Company registered on November 27; Sewri factory site
bought
• 1888 Sunlight soap introduced in India.
• 1895 Lifebuoy soap launched
• 1902 Pears soap introduced in India.
• 1903 Brooke Bond Red Label tea launched.
• 1905 Lux flakes introduced.
• 1913Vim scouring powder introduced.
• 1922 Rin soap powder introduced.
• 1925 Lever Brothers gets full control of North West Soap Company.
• 1930 Unilever is formed on January 1 through merger of Lever Brothers and Margarine Unite.
• 1931Hindustan Vanaspati Manufacturing Company registered on November 27; Sewri factory site
bought.,
• 1932Vanaspati manufacture starts at Sewri.
• 1934 Soap manufacture begins at Sewri factory in October; North West Soap Company's Garden
Reach Factory, Kolkata rented and expanded to produce Lever brands.
• 1941 Agencies in Mumbai, Chennai, Kolkata and Karachi taken over; company acquires own sales
force.
• 1942 Unilever takes firm decision to "train Indians to take over junior and senior management positions
instead of Europeans".
• 1944 Reorganization of the three companies with common management but separate marketing
operations.
• 1947 Pond's Cold Cream launched.
• 1951 Mr. Prakash Tandon becomes first Indian Director. Shamnagar, Tiruchy, and Ghaziabad Vanaspati
factories bought.
• 1955 65% of managers are Indians.
• 1956 Three companies merge to form Hindustan Unilever Limited, with 10% Indian equity
participation.
• 1957 Unilever Special Committee approves research activity by Hindustan Unilever.
• 1959 Surf launched.
• 1961 Mr. Prakash Tandon takes over as the first Indian Chairman; 191 of the 205 managers are Indians.
• 1962 Formal Exports Department starts.
• 1963 Head Office building at Backbay Reclamation, Mumbai, opened. 
• 1964 Etah dairy set up, Anik ghee launched; Animal feeds plant at Ghaziabad; Sunsilk shampoo
launched.
• 1965 Signal toothpaste launched; Indian shareholding increases to 14%.
 P&G
• P&G WAS FOUNDED IN 1837 BY TWO MEN WHO MET BY CHANCE. William Procter,
emigrating from England, established himself as a candle maker in Cincinnati, which was a busy
center of commerce and industry in the early nineteenth century. And James Gamble, arriving from
Ireland, apprenticed himself to a soap maker. The two might never have met had they not married
sisters Olivia and Elizabeth Norris; whose father convinced his new sons-in-law to become business
partners.
• As a result, in 1837, a bold new enterprise was born: Procter & Gamble. William Procter was born in
1801 in England. As a boy, he worked as general store apprentice, learning to “dip candles” – a skill
that would later lead to both fame and fortune.
• His first entrepreneurial venture, however, met with disaster. The day after opening, his dry goods
shop in London was robbed, leaving Procter $8,000 in debt – a huge sum in 1832. Determined to
rebuild, he and his wife decided to immigrate to the United States. While traveling down the Ohio
River, Mrs. Procter became ill and died a few months after their arrival in Cincinnati.
• Procter first worked in a bank. He then decided to use his past experience as a candle maker to earn
extra income and help pay off his debt. He took advantage of the fat and oil by-products from
Cincinnati’s large meatpacking industry. Procter began as a one- person operation – manufacturing,
selling and delivering candles to his customers in the area.
• During this time, he also met and proposed to Olivia Norris, the daughter of a prominent candle
 HISTORY BACKGROUND
• In India Proctor & Gamble has two subsidiaries: P&G Hygiene and Health Care Ltd. And P&G Home Products Ltd. P&G
Hygiene and Health Care Limited is one of India's fastest growing Fast-Moving Consumer Goods Companies with a
turnover of more than Rs. 500crores. It has in its portfolio famous brands like Vicks & Whisper. P&G Home Products28
Limited deals in Fabric Care segment and Hair Care segment. It has in its kitty global brands such as Ariel and Tide in the
Fabric Care segment, and Head & Shoulders, Pantene, and Rejoice in the Hair Care segment.
• 1837: On October 31, 1837, Procter & Gamble was born.
• 1859: Sales reached one million.
• 1887: William Arnett Procter, began a profit-sharing program for the company's workforce to avoid strikes like problems.
• 1911: Began to diversify its products & build factories in other locations in the United States.
• 1930: The company moved into other countries, both in terms of manufacturing and product sales and equisized of the
 Newcastle upon Tyne-based Thomas Hedley Co.
• 1946: Company introduced “TIDE” detergent powder 
• 1950: Company introduced “PRELL” shampoo.
• 1951: Procter & Gamble's relationship with India started when Vicks Product Inc. India, a branch of Vicks Product Inc.
USA entered Indian market.
• 1955: Began selling the first toothpaste “CREST”.
• 1961: Company launched its most revolutionary products “PAMPERS”
• 1964: A public limited company, Richardson Hindustan Limited (RHL) was formed which obtained an Industrial License
to undertake manufacture of Menthol and de mentholated peppermint oil and VICKS range of products such as Vicks
VapoRub, Vicks Cough Drops and Vicks Inhaler.
• 1985: P&G acquired Indian based company Richardson Hindustan limited
• 1989: Procter & Gamble India launched Whisper - the breakthrough technology sanitary
napkin.29
• 1991: P&G India launched Ariel detergent.
• 1992: The Procter & Gamble Company, US increased its stake in Procter &Gamble India to
51% and then to 65%.
• 1994 :P&G Home Products Limited was incorporated as 100% subsidiary of the Procter &
Gamble Company, USA and it launched Ariel Super Soaker. In the same year Procter &
Gamble India divested the Detergents business to Procter & Gamble Home Products 
• 1999: Procter & Gamble India Limited changed the name of the Company to Procter &
Gamble Hygiene and Health Care Limited.
• 2000: Procter & Gamble Home Products introduced Tide Detergent Powder – the largest
selling detergent in the world.
• 2002:P&G also hosted Pantene World Teen Queen contest in Goa. Contestants from UK, USA,
South Africa, Kenya, Tanzania, Mauritius, Middle East and Hong Kong participated to win the
coveted World Teen Queen crown.
• 2003: Procter & Gamble Home Products Limited launched Pampers - world's number one
selling diaper brand.3
• 2005: P&G acquized GILLETTE.
 Objective of the study

• 1. To study competitive market of FMCG between P&G COMPANY and

HUL.
• 2. Study on different channels of P&G and HUL company’s.
• 3. To analyses the effectiveness of distribution channels of both
companies.
• 4. Research the marketing trends of HUL and P&G and compare them.
• 5. Study on satisfaction through channel marketing in retail market.
 Overview of Indian market

• P&G
• The company moved into other countries, both in terms of manufacturing and
product sales, becoming an international corporation with its 1930 acquisition
of the Thomas Hedley Co., based in Newcastle upon Tyne, England. After
this acquisition, Procter & Gamble had their UK Headquarters at 'Hedley
House' in Newcastle upon Tyne, until quite recently. Numerous new products
and brand names were introduced over time, and Procter & Gamble began
branching out into new areas. The company introduced Tide laundry
detergent in 1946 and Prell shampoo in 1947. In 1955, Procter & Gamble
began selling the first toothpaste to contain fluoride, known as Crest.
• One of the most revolutionary products to come out on the market was the
company's disposable Pampers diaper, first test-marketed in 1961, the same
year Procter & Gamble came out with Head & Shoulders. Prior to this point,
disposable diapers were not popular, although Johnson & Johnson .
• HUL
• Hindustan Unilever Limited is the largest consumer goods company
in India, established in 933 and is based out of Mumbai. The
company known for its presence across almost all categories of
consumer products, has a variety of products in each of the
categories targeted at almost all the customer segments. It has
products in over 20 consumer categories majorly Food & Drink,
Personal care, Home care and Water purifier serving over 700 million
customers across the country and is undoubtedly the market leader
in the FMCG sector. Some of the famous brands of HUL are Dove,
Lux, Lifebuoy, Pears, Hamam, Lyril, Rexona, Surf Excel, Wheel,
Comfort, Clinic Plus, Sunsilk, Fair & Lovely, Pond’s, Lakmè, Vaseline,
Bru, Taj Mahal, Lipton, Brooke Bond, Cornetto, Kisan, Annapurna,
Magnum, Close up, Pepsodent, and many more.
 Research Methodology

 Primary Data Collection: -

• The data is both qualitative as well quantitative and is collected from various new and existing customers of
P&G, HUL, and ITC. The data has been collected through door to door visit and filling up of
questionnaires from the shop owner .
 Secondary Data Collection: -
• The secondary data have been collected from various sources such as books, journals, magazines, research
reports of previously conducted studies in this direction and the internet 
 Sample Design: -
Research Instrument: -
• The Research Instrument in this Study is Questionnaire to be filled by the Respondents.
• Questionnaire with Close Ended Data
RESEARCH TYPE:
• Descriptive research
 FMCG companies in market
List of Top 10 FMCG Companies in India

• 1. Hindustan Unilever Limited (HUL)

• 2. Colgate-Palmolive
• 3. ITC Limited
• 4. Nestle
• 5. Parle Agro
• 6. Britannia Industries Limited
• 7. Marico Limited
• 8. Procter & Gamble
• 9. Godrej Group
• 10. Amul
 Distribution channel of HUL and P&G
• 1. HUL has larger product mix as compare to P&G
• 2. Product length of HUL is (8+8+16) 32, product length of P&G is (2+3+1)6
• 3. HUL has a special product line of food but P&G doesnot have such separate product line.
• 4. Average length of product line of HUL is 32/3 = 10(approximate) on the contrarily Average length
of product line of P&G is 6/3 = 3
• 5. Here HUL and P&G both have 3 product line meansboth have 3 product width.
• 6. product line of HUL and P&G
• Channel Design of HUL
• Hindustan Lever Limited (HUL) has two types of channel selling‐
• I. Regular (traditional) retail channel,
• ii. Direct Selling Channel in the name of Hindustan Lever Network (HLN).
• HUL has a well high distribution model which comprises of C&Fs, Redistribution Stocklists, wholesalers
and retailers. Hindustan Unilever's distribution network is recognized as one of its key strengths. Its
focuses on Product availability, Brand communication, and higher levels of brand experience.
 Distribution structure of P&G
Company

C&F

Distribution

Wholesaler Retailer

Customer
• Work for as per a channel . Takes order on one day from the
counter and deliver the order next day
• Delivery agent deliver the goods.
• There are 3 godowns in Ahmedabad.
• 120 staff who have their personal bike, whos travelling expenses
is reimbursed.
• 68 vehicles.
• The sales force normally work in the market from 9am to 7pm .
 Schemes for the customer
• Extra weightage on products
• Extra buy
• Money saver packs
 Data analysis
Q.1Gender

Chart Title

22%

Male FEMale
78%

Interpritation- 78% are male and 22% are female responders.

 Q.2 Age

Chart Title

25%
31%

44%

• Interpritation- 58% have a retail business, 17% have a

wholesale business, 9% have a new start ups, 16% have
a small stores.
Q.3 Which companies are serving you Q.4 Are you aware about
services? channel system of company’s?
Chart Title Chart Title

other 81%

yes no
traders 61%
38%

ITC 44%
62%

P&G 78%

HUL 69%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Interpritation- 68% stores has HUL Interpritation- 62% store owners

services, 78% stores has P&G services, are awaer from the channel
44% stores has ITC services, 81% stores system and 38% are not aware
has other company’s services, 61%
about that.
stores has traders company’s services.
 Q.6 If yes, so Rank them
Q.5 Did you satisfy channel services in to 1 to 5
marketing of particular company?

Chart Title Chart Title

yes 5 5 5
no
4 4 4

3 3 3
49% 51%
2 2 2

1 1 1
0%
2%
P&G 2% 21% 20% 6% HUL 3% 14% 20% 11% ITC
1% 5% 18% 13% 5%

• Interpritation-51% are
Interpretation-in 1 to 5
satisfied and 49% are not
P&G get rank between 3 to 5,
satisfied from the company’s
HUL get rank between 2 to 5
services.
ITC get rank between 2 to 5
 Q.7 according to you P&G's which services are satisfied

Chart Title

43%

35%
32%

32%
30%

19%

14%
12%

9%
8%

7%
1%
0%

0%

0%
Interpretation- in P&G
• Company's services are satisfied- 8% are Highly satisfied, 30%satisfied, 32%Neutral, 12%Dissatisfied,
0%Highly Dissatisfied,
• Salesman's services are satisfied-19% are Highly satisfied, 43%satisfied, 14%Neutral, 1%Dissatisfied,
0%Highly Dissatisfied,
• Delivery's services are satisfied-9% are Highly satisfied, 32%satisfied, 35%Neutral, 7%Dissatisfied,
0%Highly Dissatisfied.
 Q.8 according to you HUL's which services are satisfied

Chart Title
37%

32%
31%

25%
23%
21%

14%
10%

10%

6%
5%

5%

1%
0%

0%
Interpretation- in HUL
• Company's services are satisfied- 12% are Highly satisfied, 27% satisfied, 22% Neutral,
29% Dissatisfied, 0% Highly Dissatisfied,
• Salesman's services are satisfied-13% are Highly satisfied, 24% satisfied, 18% Neutral,
5% Dissatisfied, 0% Highly Dissatisfied,
• Delivery's services are satisfied- 12% are Highly satisfied, 20% satisfied, 24% Neutral,
18% Dissatisfied, 1% Highly Dissatisfied,
 Q.9 according to you ITC's which services are satisfied

27% Chart Title

24%

24%
22%

20%
18%

18%
13%
12%

12%
5%
2%

1%
0%

0%
Interpretation- in ITC
• Company's services are satisfied- 12% are Highly satisfied, 27% satisfied, 22% Neutral, 2% Dissatisfied, 0% Highly
Dissatisfied,
• Salesman's services are satisfied-13% are Highly satisfied, 24% satisfied, 18% Neutral, 5% Dissatisfied, 0% Highly
Dissatisfied,
• Delivery's services are satisfied- 12% are Highly satisfied, 20% satisfied, 24% Neutral, 18% Dissatisfied, 0% Highly
Dissatisfied,
 Finding and Conclusion
• In survey we found 56% are have a retail channel, 7% are have a large channel, 7% are have a
whole sale channel, 1% are have a hyper market channel, 30% are have a no idea about them
channel.
• 78% are male and 22% are female responders.
• 51% are satisfied and 49% are not satisfied from the company’s services
• 62% store owners are aware from the channel system and 38% are not aware about that.
• 31% responder are from 25 to 35 age group, 44% responder are from 35 to 65 age group, 25%
responder are from above 65 age group
• 58% have a retail business, 17% have a wholesale business, 9% have a new start ups, 16% have
a small stores.
• 62% store owners are awaer from the channel system and 38% are not aware about that.
• 56% have a retail channel, 7% have a large channel,
• 7% have a wholesale channel,1% have a hiper market channel, 30% have a no idea about the
channel
 Bibliography
• https://www.bsl-lausanne.ch/wp-content/uploads/2017/01/Luca-F-Pr
octer-Gamble-Case-Study.pdf
• https://en.wikipedia.org/wiki/Procter_%26_Gamble
• https://economictimes.indiatimes.com/industry/cons-products/fmcg/f
mcg-cracks-the-patanjali-code-naturally/articleshow/68589423.cms
• https://www.business-standard.com/article/companies/procter-gambl
e-sees-double-digit-sales-growth-in-indian-market-in-q1-1180420012
95_1.html