Itc and Hul

COMPREHENSIVE PROJECT ON COMPARISON OF MARKETING AND BRANDING STRATEGIES OF ITC AND HUL LIMITED
SUBMITTED BY
SUBMITTED TO
IILM Graduate School of Management
ASHISH KUMAR FT-10-836
PROF. PITAMBER DWIVEDI

ACKNOWLEDGEMENT
There are many forces who work together in a cohesive and coordinating manner, when we are accomplishing some work. It is my Endeavour to appreciate and thank all those forces who influenced my work directly or indirectly. Its a matter of great pleasure and proud privilege for me to acknowledge and express my sincere gratitude towards my parents and all those who helped me in my project for giving their valuable time and efforts on my project. Above all there is an invisible power of Almighty that unquestionably enlightens the path and help in accomplishing work to its prerogative end. I sincerely thank god for helping me in every Endeavour of my life.
Ashish Kumar
DECLARATION FORM
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IILM Graduate School of Management I hereby declare that the Project work entitled COMPARISON OF MARKETING AND
BRANDING STRATEGIES OF ITC AND HUL LIMITED in
Marketing Sector
submitted by me for the Comprehensive project during the Post Graduate Diploma in Management Program to Institute for Integrated Learning in Management, Greater Noida is my own original work and has not been submitted earlier either to IILM GSM or to any other Institution for the fulfillment of the requirement for any course of study. I also declare that no chapter of this manuscript in whole or in part is lifted and incorporated in this report from any earlier / other work done by me or others.
Place : Ambala Date : Ashish Kumar
Name Address
: Ashish Kumar : VPO Dhamoli, Distt Ambala
CONTENTS
57
S.NO.
TITLE CERTIFICATE
PAGE NO.
*
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.
ACKNOWLEDGEMENT COMPANY PROFILE MISSION, VISION, VALUE & AWARDS PRODUCTS OVERVIEW PROJECT OBJECTIVE ITC & HUL PERSONAL CARE PRODUCTS SUPPLY CHAIN ITC LTD. V/S HUL SCHEMES & BASIC TERMS
E-CHOUPAL V/S PROJECT SHAKTI
2
5-10 11-17 18-22 23 24-47 48-52 53-56 57-59 60-69 70-72 73-74 75 76 77
BCG MATRIX ITC V/S HUL SALES REPORT ITC V/S HUL FINDINGS AND SUGGESTION CONCLUSION BIBLIOGRAPHY REFERENCE
COMPANY OVERVIEW
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ITC WAS INCORPORATED ON AUGUST 24, 1910 UNDER THE NAME IMPERIAL TOBACCO COMPANY OF INDIA LIMITED. AS THE COMPANY'S OWNERSHIP PROGRESSIVELY INDIANISED, THE NAME OF THE COMPANY WAS CHANGED FROM IMPERIAL TOBACCO COMPANY OF INDIA LIMITED TO INDIA TOBACCO COMPANY LIMITED IN 1970 AND THEN TO I.T.C. LIMITED IN 1974. IN RECOGNITION OF THE COMPANY'S MULTI-BUSINESS PORTFOLIO ENCOMPASSING A WIDE RANGE OF BUSINESSES - CIGARETTES & TOBACCO, HOTELS, INFORMATION TECHNOLOGY, PACKAGING, PAPERBOARDS & SPECIALTY PAPERS, AGRI-BUSINESS, FOODS, LIFESTYLE RETAILING, EDUCATION & STATIONERY AND PERSONAL CARE - THE FULL STOPS IN THE COMPANY'S NAME WERE REMOVED EFFECTIVE SEPTEMBER 18, 2001. THE COMPANY NOW STANDS RECHRISTENED 'ITC LIMITED'. THE COMPANYS BEGINNINGS WERE HUMBLE. A LEASED OFFICE ON RADHA BAZAR LANE, KOLKATA, WAS THE CENTRE OF THE COMPANY'S EXISTENCE. THE COMPANY CELEBRATED ITS 16TH BIRTHDAY ON AUGUST 24, 1926, BY PURCHASING THE PLOT OF LAND SITUATED AT 37, CHOWRINGHEE, (NOW RENAMED J.L. NEHRU ROAD) KOLKATA, FOR THE SUM OF RS 310,000. THIS DECISION OF THE COMPANY WAS HISTORIC IN MORE WAYS THAN ONE. IT WAS TO MARK THE BEGINNING OF A LONG AND EVENTFUL JOURNEY INTO INDIA'S FUTURE. THE COMPANY'S HEADQUARTER BUILDING, 'VIRGINIA HOUSE', WHICH CAME UP ON THAT PLOT OF LAND TWO YEARS LATER, WOULD GO ON TO BECOME ONE OF KOLKATA'S MOST VENERATED LANDMARKS. THOUGH THE FIRST SIX DECADES OF THE COMPANY'S EXISTENCE WERE PRIMARILY DEVOTED TO THE GROWTH AND CONSOLIDATION OF THE CIGARETTES AND LEAF TOBACCO BUSINESSES, THE SEVENTIES WITNESSED THE BEGINNINGS OF A CORPORATE TRANSFORMATION THAT WOULD USHER IN MOMENTOUS CHANGES IN THE LIFE OF THE COMPANY. ITC'S PACKAGING & PRINTING BUSINESS WAS SET UP IN 1925 AS A STRATEGIC BACKWARD INTEGRATION FOR ITC'S CIGARETTES BUSINESS. IT IS TODAY INDIA'S MOST SOPHISTICATED PACKAGING HOUSE.
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IN 1975 THE COMPANY LAUNCHED ITS HOTELS BUSINESS WITH THE ACQUISITION OF A HOTEL IN CHENNAI WHICH WAS RECHRISTENED 'ITC-WELCOMGROUP HOTEL CHOLA'. THE OBJECTIVE OF ITC'S ENTRY INTO THE HOTELS BUSINESS WAS ROOTED IN THE CONCEPT OF CREATING VALUE FOR THE NATION. ITC CHOSE THE HOTELS BUSINESS FOR ITS POTENTIAL TO EARN HIGH LEVELS OF FOREIGN EXCHANGE, CREATE TOURISM INFRASTRUCTURE AND GENERATE LARGE SCALE DIRECT AND INDIRECT EMPLOYMENT. SINCE THEN ITC'S HOTELS BUSINESS HAS GROWN TO OCCUPY A POSITION OF LEADERSHIP, WITH OVER 100 OWNED AND MANAGED PROPERTIES SPREAD ACROSS INDIA. IN 1979, ITC ENTERED THE PAPERBOARDS BUSINESS BY PROMOTING ITC
BHADRACHALAM PAPERBOARDS LIMITED, WHICH TODAY HAS BECOME THE MARKET LEADER IN INDIA. BHADRACHALAM PAPERBOARDS AMALGAMATED WITH THE COMPANY EFFECTIVE MARCH 13, 2002 AND BECAME A DIVISION OF THE COMPANY, BHADRACHALAM PAPERBOARDS DIVISION. IN NOVEMBER 2002, THIS DIVISION MERGED WITH THE COMPANY'S TRIBENI TISSUES DIVISION TO FORM THE PAPERBOARDS & SPECIALTY PAPERS DIVISION. ITC'S PAPERBOARDS' TECHNOLOGY, PRODUCTIVITY, QUALITY AND MANUFACTURING PROCESSES ARE COMPARABLE TO THE BEST IN THE WORLD. IT HAS ALSO MADE AN IMMENSE CONTRIBUTION TO THE DEVELOPMENT OF SARAPAKA, AN ECONOMICALLY BACKWARD AREA IN THE STATE OF ANDHRA PRADESH. IT IS DIRECTLY INVOLVED IN EDUCATION, ENVIRONMENTAL PROTECTION AND COMMUNITY DEVELOPMENT. IN 2004, ITC ACQUIRED THE PAPERBOARD MANUFACTURING FACILITY OF BILT INDUSTRIAL PACKAGING CO. LTD (BIPCO), NEAR COIMBATORE, TAMIL NADU. THE KOVAI UNIT ALLOWS ITC TO IMPROVE CUSTOMER SERVICE WITH REDUCED LEAD TIME AND A WIDER PRODUCT RANGE. IN 1985, ITC SET UP SURYA TOBACCO CO. IN NEPAL AS AN INDO-NEPAL AND BRITISH JOINT VENTURE. SINCE INCEPTION, ITS SHARES HAVE BEEN HELD BY ITC, BRITISH AMERICAN TOBACCO AND VARIOUS INDEPENDENT SHAREHOLDERS IN NEPAL. IN AUGUST 2002, SURYA TOBACCO BECAME A SUBSIDIARY OF ITC LIMITED
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AND ITS NAME WAS CHANGED TO SURYA NEPAL PRIVATE LIMITED (SURYA NEPAL). IN 1990, ITC ACQUIRED TRIBENI TISSUES LIMITED, A SPECIALTY PAPER MANUFACTURING COMPANY AND A MAJOR SUPPLIER OF TISSUE PAPER TO THE CIGARETTE INDUSTRY. THE MERGED ENTITY WAS NAMED THE TRIBENI TISSUES DIVISION (TTD). TO HARNESS STRATEGIC AND OPERATIONAL SYNERGIES, TTD WAS MERGED WITH THE BHADRACHALAM PAPERBOARDS DIVISION TO FORM THE PAPERBOARDS & SPECIALTY PAPERS DIVISION IN NOVEMBER 2002. ALSO IN 1990, LEVERAGING ITS AGRI-SOURCING COMPETENCY, ITC SET UP THE AGRI BUSINESS DIVISION FOR EXPORT OF AGRI-COMMODITIES. THE DIVISION IS TODAY ONE OF INDIA'S LARGEST EXPORTERS. ITC'S UNIQUE AND NOW WIDELY ACKNOWLEDGED E-CHOUPAL INITIATIVE BEGAN IN 2000 WITH SOYA FARMERS IN MADHYA PRADESH. NOW IT EXTENDS TO 10 STATES COVERING OVER 4 MILLION FARMERS. ITC'S FIRST RURAL MALL, CHRISTENED 'CHOUPAL SAAGAR' WAS INAUGURATED IN AUGUST 2004 AT SEHORE. ON THE RURAL RETAIL FRONT, 24 'CHOUPAL SAAGARS' ARE NOW OPERATIONAL IN THE 3 STATES OF MADHYA PRADESH, MAHARASHTRA AND UTTAR PRADESH. IN 2000, ITC FORAYED INTO THE GREETING, GIFTING AND STATIONERY PRODUCTS BUSINESS WITH THE LAUNCH OF EXPRESSIONS RANGE OF GREETING CARDS. A LINE OF PREMIUM RANGE OF NOTEBOOKS UNDER BRAND PAPERKRAFT WAS LAUNCHED IN 2002. TO AUGMENT ITS OFFERING AND TO REACH A WIDER STUDENT POPULATION, THE POPULAR RANGE OF NOTEBOOKS WAS LAUNCHED UNDER BRAND CLASSMATE IN 2003. CLASSMATE OVER THE YEARS HAS GROWN TO BECOME INDIAS LARGEST NOTEBOOK BRAND AND HAS ALSO INCREASED ITS PORTFOLIO TO OCCUPY A GREATER SHARE OF THE SCHOOL BAG. YEARS 2007- 2009 SAW THE LAUNCH OF CHILDREN BOOKS, SLAM BOOKS, GEOMETRY BOXES, PENS AND PENCILS UNDER THE CLASSMATE BRAND. IN 2008, ITC REPOSITIONED THE BUSINESS AS THE EDUCATION AND STATIONERY
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PRODUCTS BUSINESS AND LAUNCHED INDIA'S FIRST ENVIRONMENT FRIENDLY PREMIUM BUSINESS PAPER UNDER THE PAPERKRAFT BRAND. PAPERKRAFT OFFERS A DIVERSE PORTFOLIO IN THE PREMIUM EXECUTIVE STATIONERY AND OFFICE CONSUMABLES SEGMENT. PAPERKRAFT ENTERED NEW CATEGORIES IN THE OFFICE CONSUMABLE SEGMENT WITH THE LAUNCH OF TEXT LINERS, PERMANENT INK MARKERS AND WHITE BOARD MARKERS IN 2009. ITC ALSO ENTERED THE LIFESTYLE RETAILING BUSINESS WITH THE WILLS SPORT RANGE OF INTERNATIONAL QUALITY RELAXED WEAR FOR MEN AND WOMEN IN 2000. THE WILLS LIFESTYLE CHAIN OF EXCLUSIVE STORES LATER EXPANDED ITS RANGE TO INCLUDE WILLS CLASSIC FORMAL WEAR (2002) AND WILLS CLUB LIFE EVENING WEAR (2003). ITC ALSO INITIATED A FORAY INTO THE POPULAR SEGMENT WITH ITS MEN'S WEAR BRAND, JOHN PLAYERS, IN 2002. IN 2006, WILLS LIFESTYLE BECAME TITLE PARTNER OF THE COUNTRY'S MOST PREMIER FASHION EVENT - WILLS LIFESTYLE INDIA FASHION WEEK - THAT HAS GAINED RECOGNITION FROM BUYERS AND RETAILERS AS THE SINGLE LARGEST B-2-B PLATFORM FOR THE FASHION DESIGN INDUSTRY. TO MARK THE OCCASION, ITC LAUNCHED A SPECIAL 'CELEBRATION SERIES', TAKING THE EVENT FORWARD TO CONSUMERS.
IN 2000, ITC SPUN OFF ITS INFORMATION TECHNOLOGY BUSINESS INTO A WHOLLY OWNED SUBSIDIARY, ITC INFOTECH INDIA LIMITED, TO MORE AGGRESSIVELY PURSUE EMERGING OPPORTUNITIES IN THIS AREA. TODAY ITC INFOTECH IS ONE OF INDIAS FASTEST GROWING GLOBAL IT AND IT-ENABLED SERVICES COMPANIES AND HAS ESTABLISHED ITSELF AS A KEY PLAYER IN OFFSHORE OUTSOURCING, PROVIDING OUTSOURCED IT SOLUTIONS AND SERVICES TO LEADING GLOBAL CUSTOMERS ACROSS KEY FOCUS VERTICALS MANUFACTURING, BFSI (BANKING, FINANCIAL SERVICES & INSURANCE), CPG&R (CONSUMER PACKAGED GOODS & RETAIL), THT (TRAVEL, HOSPITALITY AND TRANSPORTATION) AND MEDIA & ENTERTAINMENT.
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ITC'S FORAY INTO THE FOODS BUSINESS IS AN OUTSTANDING EXAMPLE OF SUCCESSFULLY BLENDING MULTIPLE INTERNAL COMPETENCIES TO CREATE A NEW DRIVER OF BUSINESS GROWTH. IT BEGAN IN AUGUST 2001 WITH THE INTRODUCTION OF 'KITCHENS OF INDIA' READY-TO-EAT INDIAN GOURMET DISHES. IN 2002, ITC ENTERED THE CONFECTIONERY AND STAPLES SEGMENTS WITH THE LAUNCH OF THE BRANDS MINT-AND CANDYMAN CONFECTIONERY AND AASHIRVAAD ATTA (WHEAT FLOUR). 2003 WITNESSED THE INTRODUCTION OF SUN FEAST AS THE COMPANY ENTERED THE BISCUITS SEGMENT. ITC'S ENTERED THE FAST GROWING BRANDED SNACKS CATEGORY WITH BINGO! IN 2007. IN EIGHT YEARS, THE FOODS BUSINESS HAS GROWN TO A SIGNIFICANT SIZE WITH OVER 200 DIFFERENTIATED PRODUCTS UNDER SIX DISTINCTIVE BRANDS, WITH AN ENVIABLE DISTRIBUTION REACH, A RAPIDLY GROWING MARKET SHARE AND A SOLID MARKET STANDING. IN 2002, ITC'S PHILOSOPHY OF CONTRIBUTING TO ENHANCING THE
COMPETITIVENESS OF THE ENTIRE VALUE CHAIN FOUND YET ANOTHER EXPRESSION IN THE SAFETY MATCHES INITIATIVE. ITC NOW MARKETS POPULAR SAFETY MATCHES BRANDS LIKE IKNO, MANGALDEEP, AIM, AIM MEGA AND AIM METRO. ITC'S FORAY INTO THE MARKETING OF AGARBATTIS IN 2003.MARKED THE MANIFESTATION OF ITS PARTNERSHIP WITH THE COTTAGE SECTOR. ITC'S POPULAR AGARBATTIS BRANDS INCLUDE SPRIHA AND MANGALDEEP ACROSS A RANGE OF FRAGRANCES LIKE ROSE, JASMINE, BOUQUET, SANDALWOOD, MADHUR, SAMBRANI AND NAGCHAMPA. ITC INTRODUCED ESSENZA DI WILLS, AN EXCLUSIVE RANGE OF FINE
FRAGRANCES AND BATH & BODY CARE PRODUCTS FOR MEN AND WOMEN IN JULY 2005. INIZIO, THE SIGNATURE RANGE UNDER ESSENZA DI WILLS PROVIDES A COMPREHENSIVE GROOMING REGIMEN WITH DISTINCT LINES FOR MEN (INIZIO HOMME) AND WOMEN (INIZIO FEMME). CONTINUING WITH ITS TRADITION OF BRINGING WORLD CLASS PRODUCTS TO INDIAN CONSUMERS THE COMPANY LAUNCHED 'FIAMA DI WILLS', A PREMIUM RANGE OF SHAMPOOS, SHOWER GELS
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AND SOAPS IN SEPTEMBER, OCTOBER AND DECEMBER 2007 RESPECTIVELY. THE COMPANY ALSO LAUNCHED THE 'SUPERIA' RANGE OF SOAPS AND SHAMPOOS IN THE MASS-MARKET SEGMENT AT SELECT MARKETS IN OCTOBER 2007 AND VIVEL DE WILLS & VIVEL RANGE OF SOAPS IN FEBRUARY AND VIVEL RANGE OF SHAMPOOS IN JUNE 2008.
BOARD OF DIRECTOR
CHAIRMAN'S STATEMENT
ITC'S VISION AND STRATEGY
"ENVISIONING A LARGER SOCIETAL PURPOSE ('A COMMITMENT BEYOND THE MARKET') HAS ALWAYS BEEN A HALLMARK OF ITC. THE COMPANY SEES NO CONFLICT BETWEEN THE TWIN GOALS OF SHAREHOLDER VALUE ENHANCEMENT AND SOCIETAL VALUE CREATION. THE CHALLENGE LIES IN FASHIONING A CORPORATE STRATEGY THAT ENABLES REALIZATION OF THESE GOALS IN A MUTUALLY REINFORCING AND SYNERGISTIC MANNER"
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Y.C. DEVESHWAR (CHAIRMAN)
EXECUTIVE DIRECTOR
ANUP SINGH K.VAIDYANATH
NON-EXECUTIVE DIRECTOR
ANIL BAIJAL D K MEHROTRA ANTHONY RUYS R K KAUL H G POWELL S H KHAN S B MATHUR P.B. RAMANUJAM
BASUDEB SENB VIJAYRAGHVAN
MISSION & VISION
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 COMPANYS STAKEHOLDERS. TO ENHANCE THE WEALTH GENERATING CAPABILITY OF THE ENTERPRISE IN A GLOBALIZING ENVIRONMENT, DELIVERING SUPERIOR AND SUSTAINABLE STAKEHOLDER VALUE
ITC'S CORE VALUES

ITC'S CORE VALUES ARE AIMED AT DEVELOPING A CUSTOMER-FOCUSED, HIGH-
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PERFORMANCE STAKEHOLDERS: TRUSTEESHIP
ORGANIZATION
WHICH
CREATES
VALUE
FOR
ALL
ITS
AS PROFESSIONAL MANAGERS, WE ARE CONSCIOUS THAT ITC HAS BEEN GIVEN TO US IN "TRUST" BY ALL OUR STAKEHOLDERS. WE WILL ACTUALIZE STAKEHOLDER VALUE AND INTEREST ON A LONG TERM SUSTAINABLE BASIS. CUSTOMER FOCUS WE ARE ALWAYS CUSTOMER FOCUSED AND WILL DELIVER WHAT THE CUSTOMER NEEDS IN TERMS OF VALUE, QUALITY AND SATISFACTION. RESPECT FOR PEOPLE WE ARE RESULT ORIENTED, SETTING HIGH PERFORMANCE STANDARDS FOR OURSELVES AS INDIVIDUALS AND TEAMS. WE WILL SIMULTANEOUSLY RESPECT AND VALUE PEOPLE AND UPHOLD HUMANNESS AND HUMAN DIGNITY. WE ACKNOWLEDGE THAT EVERY INDIVIDUAL BRINGS DIFFERENT PERSPECTIVES AND CAPABILITIES TO THE TEAM AND THAT A STRONG TEAM IS FOUNDED ON A VARIETY OF PERSPECTIVES. WE WANT INDIVIDUALS TO DREAM, VALUE DIFFERENCES, CREATE AND
EXPERIMENT IN PURSUIT OF OPPORTUNITIES AND ACHIEVE LEADERSHIP THROUGH TEAMWORK. EXCELLENCE WE DO WHAT IS RIGHT, DO IT WELL AND WIN. WE WILL STRIVE FOR EXCELLENCE IN WHATEVER WE DO. INNOVATION WE WILL CONSTANTLY PURSUE NEWER AND BETTER PROCESSES, PRODUCTS,
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SERVICES AND MANAGEMENT PRACTICES. NATION ORIENTATION WE ARE AWARE OF OUR RESPONSIBILITY TO GENERATE ECONOMIC VALUE FOR THE NATION. IN PURSUIT OF OUR GOALS, WE WILL MAKE NO COMPROMISE IN COMPLYING WITH APPLICABLE LAWS AND REGULATIONS AT ALL LEVELS.
ITC BRANCH OPERATION STRUCTURE

ITC HO
DO WEST 6 BRANCH
DO EAST 7 BRANCH
DO NORTH 6 BRANCH
DOSOUT H8 BRANCH
Bhopal branch
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Branch Mgr.
Assit.Mgr cigg. +matc.
Assit. Mgr GR1+GR 3
Assit. Mgr pcp+agbt ti
Area. Mgr statnry prdt
Area Mgr Bhopal
Area Mgr Indore
Area Mgr Gwalior
Area Mgr Jabalpur
Area Execu.
AreaExec u.
Area Execu.
Area Execu.
All AE visited to the all WD (in Bhopal 5 WD)
ITC OPERATIONAL STRUCTURE IS SHOWN ABOVE ITC 4 DO AND EVERY DO HAVE 6 TO 8 BRANCHES AND EVERY BRANCH HAVE AREA CIRCLE AND EVERY CIRCLE HAVE SECTION AND EVERY SECTION HAVE WD. IN THE BHOPAL BRANCH 1 BRANCH MANAGER AND UNDER HIM 3 ASSISTANT MANAGER OF EACH BUSINESS DIVISION GR1, GR2, GR3, GR4 (GR1 FOOD DIVISION, GR2 PERSONAL CARE PRODUCT AND AGARBATTI GR3 BINGO AND GR4 FOR CIGARETTES) AND EVERY ASSISTANT MANAGER HAVE AREA MANAGER AND EVERY AREA MANAGER HAVE AREA EXECUTIVE FOR EACH GR. AREA EXECUTIVE ARE RESPONSIBLE FOR SALE OF THE PRODUCT THROUGH DISTRIBUTOR AND INCREASING SALE MAINTAIN RELATION WITH WD AND TRAINING SALES MAN INFORMATION ABOUT PRODUCT ITS VARIANT AND SCHEME AND COMPETITORS.
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ACCOUNT MANAGER FOR KEY ACCOUNTS OF THE DEPARTMENT AND STATIONERY PRODUCT HAVE AM WHO IS DIRECT REPORTING TO THE BM. ALL AREA EXECUTIVE ARE REPORTING TO THE AREA MANAGER AND AREA MANAGER ARE REPORTING TO THE ASSISTANT MANAGER AND ASSISTANT MANAGER REPORTING TO THE BRANCH MANAGERS. MAJOR BUSINESS OF ITC

TRADE MARKETING AND DISTRIBUTOR(TM&D) AGRO - BUSINESS DIVISION (ABD)

INDIAN LEAF TOBACCO DIVISION (ILTD)
FOOD BUSINESS DIVISION (FBD)
PAPER BOARDS AND PACKAGING DIVISION(PB&PD)
NEW BUSINESS DIVISION (NBD)
PERSONAL CARE PRODUCT DIVISION (PCPD)
AGARBATTI DIVISION (AD)
MATCHES DIVISION (MD)
LIFE STYLE RETAIL BUSINESS (LRBD) HOTEL DIVISION (HD) ITC INFOTECH
AWARDS OF ITC
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ITC CONSTANTLY ENDEAVOURS TO BENCHMARK ITS PRODUCTS, SERVICES AND PROCESSES TO GLOBAL STANDARDS. THE COMPANY'S PURSUIT OF EXCELLENCE HAS EARNED IT NATIONAL AND INTERNATIONAL HONORS. ITC IS ONE OF THE EIGHT INDIAN COMPANIES TO FIGURE IN FORBES A-LIST FOR 2004, FEATURING 400 OF "THE WORLD'S BEST BIG COMPANIES". FORBES HAS ALSO NAMED ITC AMONG ASIA'S FAB 50' AND THE WORLD'S MOST REPUTABLE COMPANIES. ITC HAS SEVERAL FIRSTS TO ITS CREDIT: 1. ITC IS THE FIRST FROM INDIA AND AMONG THE FIRST 10 COMPANIES IN THE WORLD TO PUBLISH ITS SUSTAINABILITY REPORT IN COMPLIANCE (AT THE HIGHEST A+ LEVEL) WITH THE LATEST G3 GUIDELINES OF THE NETHERLANDSBASED GLOBAL REPORTING INITIATIVE (GRI), A UN-BACKED, MULTI STAKEHOLDER INTERNATIONAL INITIATIVE TO DEVELOP AND DISSEMINATE GLOBALLY APPLICABLE SUSTAINABILITY REPORTING GUIDELINES. 2. ITC IS THE FIRST INDIAN COMPANY AND THE SECOND IN THE WORLD TO WIN THE PRESTIGIOUS DEVELOPMENT GATEWAY AWARD. IT WON THE $100,000 AWARD FOR THE YEAR 2005 FOR ITS TRAILBLAZING ITC E-CHOUPAL INITIATIVE WHICH HAS ACHIEVED THE SCALE OF A MOVEMENT IN RURAL INDIA. THE DEVELOPMENT GATEWAY AWARD RECOGNIZES ITC'S E-CHOUPAL AS THE MOST EXEMPLARY CONTRIBUTION IN THE FIELD OF INFORMATION AND COMMUNICATION TECHNOLOGIES (ICT) FOR DEVELOPMENT DURING THE LAST 10 YEARS. ITC E-CHOUPAL WON THE AWARD FOR THE IMPORTANCE OF ITS
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CONTRIBUTION TO DEVELOPMENT PRIORITIES LIKE POVERTY REDUCTION, ITS SCALE AND RELIABILITY, SUSTAINABILITY AND TRANSPARENCY. 3. ITC HAS WON THE INAUGURAL 'WORLD BUSINESS AWARD', THE WORLDWIDE BUSINESS AWARD RECOGNIZING COMPANIES WHO HAVE MADE SIGNIFICANT EFFORTS TO CREATE SUSTAINABLE LIVELIHOOD OPPORTUNITIES AND ENDURING WEALTH IN DEVELOPING COUNTRIES. THE AWARD HAS BEEN INSTITUTED JOINTLY BY THE UNITED NATIONS DEVELOPMENT PROGRAM (UNDP), INTERNATIONAL CHAMBER OF COMMERCE (ICC) AND THE HRH PRINCE OF WALES INTERNATIONAL BUSINESS LEADERS FORUM (IBLF). 4. ITC IS THE FIRST CORPORATE TO RECEIVE THE ANNUAL FICCI OUTSTANDING VISION CORPORATE TRIPLE IMPACT AWARD IN 2007 FOR ITS INVALUABLE CONTRIBUTION TO THE TRIPLE BOTTOM LINE BENCHMARKS OF BUILDING ECONOMIC, SOCIAL AND NATURAL CAPITAL FOR THE NATION. 5. ITC HAS WON THE GOLDEN PEACOCK AWARDS FOR 'CORPORATE SOCIAL RESPONSIBILITY (ASIA)' IN 2007, THE AWARD FOR CSR IN EMERGING ECONOMIES 2005 AND EXCELLENCE IN CORPORATE GOVERNANCE' IN THE SAME YEAR. THESE AWARDS HAVE BEEN INSTITUTED BY THE INSTITUTE OF DIRECTORS, NEW DELHI, IN ASSOCIATION WITH THE WORLD COUNCIL FOR CORPORATE GOVERNANCE AND CENTRE FOR CORPORATE GOVERNANCE. 6. ITC HOTEL ROYAL GARDENIA, BANGALORE IS THE FIRST INDIAN HOTEL AND WORLD'S LARGEST, TO GET THE LEED PLATINUM RATING - THE HIGHEST GREEN BUILDING CERTIFICATION GLOBALLY. 7. THE COMPANY'S GREEN LEAF THRESHING PLANTS AT CHIRALA AND ANAPARTI IN ANDHRA PRADESH ARE THE FIRST UNITS OF THEIR KIND IN THE WORLD TO GET ISO 14001 ENVIRONMENT MANAGEMENT SYSTEMS CERTIFICATION.
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8. ITC'S CIGARETTE FACTORY IN KOLKATA IS THE FIRST SUCH UNIT IN INDIA TO GET ISO 9000 QUALITY CERTIFICATION AND THE FIRST AMONG CIGARETTE FACTORIES IN THE WORLD TO BE AWARDED THE ISO 14001 CERTIFICATION. 9. ITC MAURYA IN NEW DELHI IS THE FIRST HOTEL IN INDIA TO GET THE COVETED ISO 14001 ENVIRONMENT MANAGEMENT SYSTEMS CERTIFICATION. 10. ITC FILTRONA IS THE FIRST CIGARETTE FILTER COMPANY IN THE WORLD TO OBTAIN ISO 14001. YEAR 2010 2007 2006 AWARD THE U.S.-INDIA BUSINESS COUNCIL (USIBC) AWARD FOR GLOBAL LEADERSHIP. SAM/SPG SUSTAINABILITY LEADERSHIP AWARD CONFERRED AT THE INTERNATIONAL SUSTAINABILITY LEADERSHIP SYMPOSIUM, ZURICH. BUSINESS PERSON OF THE YEAR FROM UK TRADE & INVESTMENT, THE UK GOVERNMENT ORGANIZATION THAT SUPPORTS OVERSEAS BUSINESSES 2006 2005 2001 IN THAT COUNTRY. INDUCTED INTO THE `HALL OF PRIDE' BY THE 93RD INDIAN SCIENCE CONGRESS. HONORED WITH THE TEACHER'S LIFETIME ACHIEVEMENT AWARD. MANAGER ENTREPRENEUR OF THE YEAR FROM ERNST & YOUNG RETAIL VISIONARY OF THE YEAR FROM IMAGES, INDIA'S ONLY FASHION AND 1998 1996 1994 1986 RETAIL TRADE MAGAZINE. HONORARY FELLOWSHIP FROM THE ALL INDIA MANAGEMENT
ASSOCIATION DISTINGUISHED ALUMNI AWARD FROM IIT, DELHI. MARKETING MAN OF THE YEAR FROM A&M, THE LEADING MARKETING MAGAZINE. MERIDIAN HOTELIER OF THE YEAR.
11 ITC INFOTECH FINDS PRIDE OF PLACE AMONG A SELECT GROUP OF SEI CMM LEVEL 5COMPANIES IN THE WORLD.
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12. ITC'S GREEN LEAF THRESHING PLANT IN CHIRALA IS THE FIRST IN INDIA AND AMONG THE FIRST 10 UNITS IN THE WORLD TO BAG THE SOCIAL ACCOUNTABILITY (SA 8000) CERTIFICATION.
PRODUCT OVERVIEW
ITCS BUSINESS FMCG

CIGARETTES FOODS LIFESTYLE RETAILING
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PERSONAL CARE EDUCATION & STATIONERY MATCHES AGARBATTIES
HOTEL
WELL- COME GROUP
PAPERBOARDS & PACKAGING

PAPERBOARD & SPECIALTY PAPER PACKAGING
AGRI- BUSINESS
AGRI COMMODITIES E CHOUPAL LEAF TOBACCO
INFORMATION TECHNOLOGY
ITC INFOTECH
PRODUCT INFORMATION AND LABELLING

THE FMCG CIGARETTES BUSINESS COMPLIES FULLY WITH THE FOLLOWING ACTS WITH RELEVANT AMENDMENTS:

STANDARDS OF WEIGHT AND MEASURES ACT CIGARETTES ACT CENTRAL EXCISE ACT COPTA (CIGARETTES AND OTHER TOBACCO PRODUCTS ACT)
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THE BUSINESS HAS PROVISION IN PLACE TO ENSURE VALIDATION OF THE PRODUCT WITH RESPECT TO ALL RELEVANT STATUTES PRIOR TO COMMERCIAL LAUNCH. AT THE DESIGN STAGE OF ANY NEW PRODUCT, A RIGOROUS SYSTEM OF APPROVAL, FOLLOWING THE PRINCIPAL OF SIX SIGMA, HAS BEEN INSTITUTED. ONE OF THE DEFINE STAGES IS THE CONFIRMATION OF ADHERENCE TO ALL THE STATUTES LISTED ABOVE BY AN INTERNAL LEGAL EXPERT. THIS ENSURES THAT EVERY NEW PRODUCT COMPLIES WITH ALL RELEVANT ACTS AND LAWS BEFORE SPECIFICATION ARE FINALIZED. FINALLY, THE PRODUCT DESIGN IS APPROVED BY THE CORPORATE MANAGEMENT COMMITTEE. IN, ADDITION FOR EVERY PRODUCT AND PROCESS OF MANUFACTURE, THERE ARE QUALITY PROTOCOLS TO ENSURE ADHERENCE TO SPECIFICATION. THE STATUTES APPLICABLE TO FACTORY OPERATION HAVE BEEN CONVERTED INTO STANDARDIZED CHECKLIST. THESE CHECKLISTS ARE CONSTANTLY UPDATED BY CENTRAL EXPERT PANEL TO REFLECT ANY CHANGES IN ACTS AND LAWS. EACH OPERATING BUSINESS UNIT ENSURES THAT THESE CHECKLISTS ARE ADHERED TO AND THERE IS A FORMAL REPORT BACK FROM THE HEAD OF DEPARTMENTS/UNITS CONFIRMING ADHERENCE. THE DIVISIONAL AND CORPORATE MANAGEMENT COMMITTEES ALSO REVIEW THIS PERIODICALLY. THE FOOD BUSINESS COMPLIES WITH ALL STATUTES RELEVANT TO PACKAGED FOOD PRODUCTS (INCLUDING STATUTES ON LABELING AND PRODUCT INFORMATION), WHICH INCLUDE: PREVENTION OF FOOD ADULTERATION ACT, STANDARD OF WEIGHTS & MEASURES ACT, FOOD PRODUCTS ORDER PACKAGED COMMODITY RULES TO ENSURE CONTINUOUS COMPLIANCE WITH THE STATUTES, THERE IS AN INTERNAL MECHANISM OF CHECKS AND COMPLIANCE CERTIFICATION BY OPERATING MANAGERS.
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IN
ADDITION
TO
STATUTORY
REQUIREMENTS,
THE
BUSINESS
ENSURES
VOLUNTARY DECLARATION OF NUTRITION FACTS IN THE FINAL PACKAGING OF ITS READY-TO-EAT PRODUCTS. IN THE GREETING, GIFTING AND STATIONERY BUSINESS EVERY EXPRESSIONS PRODUCT IS OLD UNDER STRICT ADHERENCE TO PRODUCT INFORMATION AND LABELING REQUIREMENT. EVERY STATIONERY PRODUCT CARRIES ON ITS LABEL THE MONTH/YEAR OF MANUFACTURE, PAPER PARAMETERS (SIZE AND GSM), NUMBER OF PAGES AND CATEGORY (CONSUMER CHOICE). THE BUSINESS COMPLIES WITH THE REQUIREMENTS OF THE STANDARD OF WEIGHT AND MEASURES ACT (INCLUDING THE PACKAGED COMMODITY RULES) AND HAS IN BUILT SYSTEM TO ENSURE COMPLIANCE INCLUDING REVIEW BEFORE THE LAUNCH OF NEW CATEGORY. IN THE HOTEL BUSINESS, THE COMPANY DOES NOT PRODUCE AND SELL ANY PACKAGED PRODUCT. HOWEVER PRODUCT INFORMATION REGARDING ROOMS AND FOOD & BEVERAGE IS COMMUNICATED THROUGH BROCHURES, IN-ROOM LITERATURE AND THE WEBSITE. IN THE PAPERBOARDS & SPECIALLY PAPERS BUSINESS PRODUCT DEVELOPMENT IS AN INTEGRAL PART OF THE MARKETING AND PROCESS FUNCTION. ALL NEW PRODUCT IDEAS ARE TAKEN THROUGH THE DEVELOPMENT PROTOCOL AND AFTER ESTABLISHING TECHNICAL FEASIBILITY AND COMMERCIAL VIABILITY, TRIALS ARE UNDERTAKEN AT THE MANUFACTURING LOCATION. AT THIS STAGE A DEVELOPMENT SPECIFICATION IS DRAWN OUT WHICH, AFTER THREE MANUFACTURING RUNS, IS DRAWN OUT INTO A FINAL SPECIFICATION SHEET KEEPING IN MIND THE CUSTOMER REQUIREMENT AND THE PROCESS CAPABILITY. IN THIS BUSINESS, INFORMATION ABOUT THE PRODUCT, COVERING RELEVANT TECHNICAL PARAMETER AGREED AND FINALIZED WITH THE CUSTOMER IS DOCUMENTED IN THE PRODUCT SPECIFICATION SHEET. QUALITY ASSURANCE CERTIFICATES ARE ISSUED FOR THE CONSIGNMENT ON REQUEST FROM
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CUSTOMER. THE LABEL ON EACH PRODUCT PACK BEARS THE PRODUCT NAME, SUBSTANCE, SIZE, WEIGHT AND BATCH/REFERENCE NUMBER FOR EFFECTIVE TRACEABILITY. ALL PRODUCT SPECIFICATION ARE REVIEWED ONCE A YEAR AND CHANGES ARE INCORPORATED WHEREVER NECESSARY. IN THE PACKAGING AND PRINTING BUSINESS ALL PACKAGES ARE BAR CODED. THE PRODUCT IS CHECKED AS PER INTERNAL QUALITY PROCEDURE/AGREEMENT WITH CUSTOMER BEFORE DISPATCH. IN AGRI BUSINESS PRODUCTS ARE PRIMARILY ON A B2B BASIS AND ARE LABELED TO MEET CUSTOMER REQUIREMENT ON EITHER QUALITY PARAMETERS, SHIPPING MARKS OR ANY IMPORTING COUNTRY LABELING REQUIREMENTS. THESE MAY WHERE REQUIRED BE ACCOMPANIED BY THE PHYTOSANITARY CERTIFICATION, SURVEYOR QUALITY REPORTS CHAMBER OF COMMERCE ETC. ALL STATUTORY REQUIREMENTS TO EXPORT ARE COMPLIED WITH. IN THE LEAF TOBACCO BUSINESS ALL PRODUCTS ARE LABELED TO MEET CUSTOMER SPECIFICATION. LABELS NORMALLY CONTAIN INFORMATION ABOUT THE GRADE, CROP YEAR, WEIGHT, LOT NO., DATE AND THE LOCATION WHERE THE PRODUCT IS PACKAGED, AND IN CERTAIN CASES, THE DESTINATION AND THE CUSTOMER THAT THE PRODUCT IS INTENDED FOR. ALL THE PACKAGES ARE BAR CODED. THE PRODUCTS SCRUPULOUSLY CONFIRM TO THE PRESCRIBED CHEMISTRY (SUGARS, NICOTINE, CHLORIDE), PARTICLE SIZE DISTRIBUTION, STEM CONTENT, AND THE PACKING (MOISTURE AND TEMPERATURE) REQUIREMENT OF THE CUSTOMER. THE PROTOCOLS FOR TESTING AND TOLERANCES ARE SPECIFIED BY THE CUSTOMER. THE MANUFACTURING UNITS AT ANAPARTI AND CHIRLA ARE ISO 9001: CERTIFIED. THE QUALITY PROCEDURES FOR THE ABOVE PARAMETER ARE CLEARLY ENUNCIATED IN ISO 9001 MANUAL. THE UNITS HAVE ADVANCED SYSTEM TO MONITOR STRICT ADHERENCE TO PROCESS AND PACKING SPECIFICATION LAID DOWN BY THE CUSTOMER. IN
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ADDITION TO PROVIDING INFORMATION, SAMPLES FROM THE FINAL PACKAGES ARE SENT TO CUSTOMER FOR CROSS-VERIFICATION IN THEIR LABORATORIES. THE BARCODE LABEL ON PACKED PRODUCT ENSURES PRODUCT TRACEABILITY IN THE TOBACCO SUPPLY CHAIN FROM FARM TO THE CUSTOMER. THIS INITIATIVE ENABLES TRACKING THE SOURCING OF GREEN LEAF TO THE FARM, CROP YEAR THE OPERATING PARAMETER DURING PROCESSING AND THE PRODUCT PACKING AND DELIVERY STAGES. IN THE LIFESTYLE RETAILING BUSINESS, THE ENTIRE PRODUCTS ARE LABELED TO CONFIRM TO STATUTORY REQUIREMENTS. ADDITIONAL INFORMATION ON ATTRIBUTES OF THE PRODUCT IS GIVEN TO INFORM THE CONSUMER OF THE SALIENT FEATURES OF THE PRODUCT. THE PRODUCT ALSO CARRIES INSTRUCTION ON HANDLING AND CARE.
ITC & HUL PERSONAL CARE PRODUCT
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BRAND AMBASSADOR OF ITC LTD. PERSONAL CARE:

KAREENA KAPOOR FOR VIVEL DI WILLS DIPIKKA PADUKONE FOR FIAMA DI WILLS TRISHA FOR SUPERIA HRITHIK ROSHAN FOR VIVEL ULTRA-PRO
INTRODUCTION TO HUL
HUL WAS FORMED IN 1933 AS LEVER BROTHERS INDIA LIMITED AND CAME INTO BEING IN 1956 AS HINDUSTAN LEVER LIMITED THROUGH A MERGER OF LEVER BROTHERS, HINDUSTAN VANASPATI MFG. CO. LTD. AND UNITED TRADERS LTD. IT IS HEADQUARTERED IN MUMBAI, INDIA AND HAS EMPLOYEE STRENGTH OF OVER 15,000 EMPLOYEES AND CONTRIBUTES TO INDIRECT EMPLOYMENT OF OVER 52,000 PEOPLE. THE COMPANY WAS RENAMED IN JUNE 2007 AS HINDUSTAN UNILEVER LIMITED. THE ANGLO-DUTCH COMPANY UNILEVER OWNS A 52% MAJORITY STAKE IN HINDUSTAN UNILIVER LIMITED. HINDUSTAN UNILEVER'S DISTRIBUTION COVERS OVER 1 MILLION RETAIL OUTLETS ACROSS INDIA DIRECTLY AND ITS PRODUCTS ARE AVAILABLE IN OVER
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6.3 MILLION OUTLETS IN THE COUNTRY, NEARLY 80% OF ALL RETAIL OUTLETS IN INDIA. IT ESTIMATES THAT TWO OUT OF THREE INDIANS USE ITS MANY HOME AND PERSONAL CARE PRODUCTS, FOOD AND BEVERAGES. HINDUSTAN UNILEVER WAS RECENTLY RATED AMONG THE TOP FOUR COMPANIES GLOBALLY IN THE LIST OF GLOBAL TOP COMPANIES FOR LEADERS BY A STUDY SPONSORED BY HEWITT ASSOCIATES, IN PARTNERSHIP WITH FORTUNE MAGAZINE AND THE RBL GROUP. THE COMPANY WAS RANKED NUMBER ONE IN THE ASIA-PACIFIC REGION AND IN INDIA. ("PRESENT STATURE", OFFICIAL WEBSITE) THE BRAND EQUITY RANKINGS IN 2010 ARE RULED BY FMCG PRODUCTS WITH HINDUSTAN LEVER ACCOUNTING FOR AS MANY AS 6 OUT OF TOP 10 MOST TRUSTED INDIAN BRANDS.
(BRAND EQUITY SURVEY, 2010)
HISTORY - CHRONOLOGY
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 HUL IN NOVEMBER 1956; HUL OFFERED 10% OF ITS EQUITY TO THE INDIAN PUBLIC, BEING THE FIRST AMONG THE FOREIGN SUBSIDIARIES TO DO SO. UNILEVER NOW HOLDS 52.10% EQUITY IN THE COMPANY. THE REST OF THE SHAREHOLDING IS DISTRIBUTED AMONG ABOUT 360,675 INDIVIDUAL SHAREHOLDERS AND FINANCIAL INSTITUTIONS. THE ERSTWHILE BROOKE BOND'S PRESENCE IN INDIA DATES BACK TO 1900. BY 1903, THE COMPANY HAD LAUNCHED RED LABEL TEA IN THE COUNTRY. IN 1912,
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BROOKE BOND & CO. INDIA LIMITED WAS FORMED. BROOKE BOND JOINED THE UNILEVER FOLD IN 1984 THROUGH AN INTERNATIONAL ACQUISITION. THE ERSTWHILE LIPTON'S LINKS WITH INDIA WERE FORGED IN 1898. UNILEVER ACQUIRED LIPTON IN 1972 AND IN 1977 LIPTON TEA (INDIA) LIMITED WAS INCORPORATED. 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. SINCE THE VERY EARLY YEARS, HUL HAS VIGOROUSLY RESPONDED TO THE STIMULUS OF ECONOMIC GROWTH. THE GROWTH PROCESS HAS BEEN ACCOMPANIED BY JUDICIOUS DIVERSIFICATION, ALWAYS IN LINE WITH INDIAN OPINIONS AND ASPIRATIONS. THE LIBERALIZATION OF THE INDIAN ECONOMY, STARTED IN 1991, CLEARLY MARKED AN INFLEXION IN HUL'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 HUL, EFFECTIVE FROM APRIL 1, 1993. IN 1996, HUL AND YET ANOTHER TATA COMPANY, LAKME LIMITED, FORMED A 50:50 JOINT VENTURE, LAKME UNILEVER LIMITED, TO MARKET LAKME'S MARKET-LEADING COSMETICS AND OTHER APPROPRIATE PRODUCTS OF BOTH THE COMPANIES. SUBSEQUENTLY IN 1998, LAKME LIMITED SOLD ITS BRANDS TO HUL AND DIVESTED ITS 50% STAKE IN THE JOINT VENTURE TO THE COMPANY. HUL FORMED A 50:50 JOINT VENTURE WITH THE US-BASED KIMBERLY CLARK CORPORATION IN 1994, KIMBERLY-CLARK LEVER LTD, WHICH MARKETS HUGGIES DIAPERS AND KOTEX SANITARY PADS. HUL HAS ALSO SET UP A SUBSIDIARY IN
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NEPAL, UNILEVER NEPAL LIMITED (UNL), AND ITS FACTORY REPRESENTS THE LARGEST MANUFACTURING INVESTMENT IN THE HIMALAYAN KINGDOM. THE UNL FACTORY MANUFACTURES HUL'S PRODUCTS LIKE SOAPS, DETERGENTS AND PERSONAL PRODUCTS BOTH FOR THE DOMESTIC MARKET AND EXPORTS TO INDIA. THE 1990S ALSO WITNESSED A STRING OF CRUCIAL MERGERS, ACQUISITIONS AND ALLIANCES ON THE FOODS AND BEVERAGES FRONT. IN 1992, THE ERSTWHILE BROOKE BOND ACQUIRED KOTHARI GENERAL FOODS, WITH SIGNIFICANT INTERESTS IN INSTANT COFFEE. IN 1993, IT ACQUIRED THE KISSAN BUSINESS FROM THE UB GROUP AND THE DOLLOPS ICE-CREAM BUSINESS FROM CADBURY INDIA. AS A MEASURE OF BACKWARD INTEGRATION, TEA ESTATES AND DOOM DOOMA, TWO PLANTATION COMPANIES OF UNILEVER, WERE MERGED WITH BROOKE BOND. THEN IN 1994, BROOKE BOND INDIA AND LIPTON INDIA MERGED TO FORM BROOKE BOND LIPTON INDIA LIMITED (BBLIL), ENABLING GREATER FOCUS AND ENSURING SYNERGY IN THE TRADITIONAL BEVERAGES BUSINESS. 1994 WITNESSED BBLIL LAUNCHING THE WALL'S RANGE OF FROZEN DESSERTS. BY THE END OF THE YEAR, THE COMPANY ENTERED INTO A STRATEGIC ALLIANCE WITH THE KWALITY ICE-CREAM GROUP FAMILIES AND IN 1995 THE MILK FOOD 100% ICE-CREAM MARKETING AND DISTRIBUTION RIGHTS TOO WERE ACQUIRED. FINALLY, BBLIL MERGED WITH HUL, WITH EFFECT FROM JANUARY 1, 1996. THE INTERNAL RESTRUCTURING CULMINATED IN THE MERGER OF POND'S (INDIA) LIMITED (PIL) WITH HUL IN 1998. THE TWO COMPANIES HAD SIGNIFICANT OVERLAPS IN PERSONAL PRODUCTS, SPECIALTY CHEMICALS AND EXPORTS BUSINESSES, BESIDES A COMMON DISTRIBUTION SYSTEM SINCE 1993 FOR PERSONAL PRODUCTS. THE TWO ALSO HAD A COMMON MANAGEMENT POOL AND A TECHNOLOGY BASE. THE AMALGAMATION WAS DONE TO ENSURE FOR THE GROUP, BENEFITS FROM SCALE ECONOMIES BOTH IN DOMESTIC AND EXPORT
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MARKETS AND ENABLE IT TO FUND INVESTMENTS REQUIRED FOR AGGRESSIVELY BUILDING NEW CATEGORIES. IN JANUARY 2000, IN A HISTORIC STEP, THE GOVERNMENT DECIDED TO AWARD 74 PER CENT EQUITY IN MODERN FOODS TO HUL, THEREBY BEGINNING THE DIVESTMENT OF GOVERNMENT EQUITY IN PUBLIC SECTOR UNDERTAKINGS (PSU) TO PRIVATE SECTOR PARTNERS. HUL'S ENTRY INTO BREAD IS A STRATEGIC EXTENSION OF THE COMPANY'S WHEAT BUSINESS. IN 2002, HUL ACQUIRED THE GOVERNMENT'S REMAINING STAKE IN MODERN FOODS. IN 2003, HUL ACQUIRED THE COOKED SHRIMP AND PASTEURIZED CRABMEAT BUSINESS OF THE AMALGAM GROUP OF COMPANIES, A LEADER IN VALUE ADDED MARINE PRODUCTS EXPORTS. HUL LAUNCHED A SLEW OF NEW BUSINESS INITIATIVES IN THE EARLY PART OF 2000S. PROJECT SHAKTI WAS STARTED IN 2001. IT IS A RURAL INITIATIVE THAT TARGETS SMALL VILLAGES POPULATED BY LESS THAN 5000 INDIVIDUALS. IT IS A UNIQUE WIN-WIN INITIATIVE THAT CATALYSES RURAL AFFLUENCE EVEN AS IT BENEFITS BUSINESS. CURRENTLY, THERE ARE OVER 45,000 SHAKTI ENTREPRENEURS COVERING OVER 100,000 VILLAGES ACROSS 15 STATES AND REACHING TO OVER 3 MILLION HOMES. IN 2002, HUL MADE ITS FORAY INTO AYURVEDIC HEALTH & BEAUTY CENTRE CATEGORY WITH THE AYUSH PRODUCT RANGE AND AYUSH THERAPY CENTERS. HINDUSTAN UNILEVER NETWORK, DIRECT TO HOME BUSINESS WAS LAUNCHED IN 2003 AND THIS WAS FOLLOWED BY THE LAUNCH OF PUREIT WATER PURIFIER IN 2004. IN 2007, THE COMPANY NAME WAS FORMALLY CHANGED TO HINDUSTAN UNILEVER LIMITED AFTER RECEIVING THE APPROVAL OF SHARE HOLDERS DURING THE 74TH AGM ON 18 MAY 2007. BROOKE BOND AND SURF EXCEL BREACHED THE RS 1,000 CRORE SALES MARK THE SAME YEAR FOLLOWED BY WHEEL WHICH CROSSED THE RS.2, 000 CRORES SALES MILESTONE IN 2008.
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ON 17TH OCTOBER 2008, HUL COMPLETED 75 YEARS OF CORPORATE EXISTENCE IN INDIA.

(OFFICIAL WEBSITE OF HINDUSTAN UNILEVER LIMITED)
MISSION
1. TO ADD VITALITY TO LIFE. WE MEET EVERYDAY NEEDS FOR NUTRITION, HYGIENE, AND PERSONAL CARE WITH BRANDS THAT HELP PEOPLE FEEL GOOD, LOOK GOOD AND GET MORE OUT OF LIFE. 2. TO HELP PEOPLE FEEL GOOD, LOOK GOOD AND GET MORE OUT OF LIFE
VISION
UNILEVER PRODUCTS TOUCH THE LIVES OF OVER 2 BILLION PEOPLE EVERY DAY WHETHER THAT'S THROUGH FEELING GREAT BECAUSE THEY'VE GOT SHINY HAIR
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AND A BRILLIANT SMILE, KEEPING THEIR HOMES FRESH AND CLEAN, OR BY ENJOYING A GREAT CUP OF TEA, SATISFYING MEAL OR HEALTHY SNACK.
A CLEAR DIRECTION
THE FOUR PILLARS OF OUR VISION SET OUT THE LONG TERM DIRECTION FOR THE COMPANY WHERE WE WANT TO GO AND HOW WE ARE GOING TO GET THERE:

WE WORK TO CREATE A BETTER FUTURE EVERY DAY WE 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.
WE WILL INSPIRE PEOPLE TO TAKE SMALL EVERYDAY ACTIONS THAT CAN ADD UP TO A BIG DIFFERENCE FOR THE WORLD. WE WILL DEVELOP NEW WAYS OF DOING BUSINESS WITH THE AIM OF DOUBLING THE SIZE OF OUR COMPANY WHILE REDUCING OUR ENVIRONMENTAL IMPACT.
THE COMPANY HAS ALWAYS BELIEVED IN THE POWER OF THEIR BRANDS TO IMPROVE THE QUALITY OF PEOPLES LIVES AND IN DOING THE RIGHT THING. AS THE BUSINESS GROWS, SO DO COMPANIES RESPONSIBILITIES. HUL RECOGNIZE THAT GLOBAL CHALLENGES SUCH AS CLIMATE CHANGE CONCERN US ALL. CONSIDERING THE WIDER IMPACT OF COMPANYS ACTIONS IS EMBEDDED IN ITS VALUES AND IS A FUNDAMENTAL PART OF WHO THEY ARE. (COMPANIES OFFICIAL
WEBSITE)
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MANAGEMENT
ORGANIZATION STRUCTURE HINDUSTAN UNILEVER LIMITED IS INDIA'S LARGEST FAST MOVING CONSUMER GOODS (FMCG) COMPANY. IT IS PRESENT IN HOME & PERSONAL CARE AND FOODS & BEVERAGES CATEGORIES. THE FUNDAMENTAL PRINCIPLE DETERMINING THE ORGANIZATION STRUCTURE IS TO INFUSE SPEED AND FLEXIBILITY IN DECISION-MAKING AND IMPLEMENTATION, WITH EMPOWERED MANAGERS ACROSS THE COMPANYS NATIONWIDE OPERATIONS. Board of Directors The Board of Directors as repositories of the corporate powers act as a guardian to the Company as also the protectors of shareholders interest
Management Committee The day-to-day management of affairs of the Company is vested with the Management Committee which is subjected to the overall superintendence and control of the Board. 57
Mr. Mr. Mr. Mr. Mr. Mr. Ms. Mr.
Nitin Paranjpe - CEO and Managing Director R. Sridhar - Chief Financial Officer Mr. Harish Shreejit Mishra - Executive Director, FoodsManwani - Chairman Mr. Nitin Personal CEO Gopal Vittal - Executive Director, Home &Paranjpe - Care and Managing Di Mr. Hemant Bakshi - Executive Director R. Sridhar - Chief Financial Officer Mr. Gopal Vittal - Executive Director, Ho Pradeep Banerjee - Executive Director, Supply Chain Leena Nair - Executive Director,Mr. Pradeep Banerjee - Executive Directo HR Dev Bajpai Executive Director,Mr. D. S. Parekh - Independent Director CS Mr. A. Narayan - Independent Director Mr. S. Ramadorai - Independent Director Dr. R. A. Mashelkar - Independent Direct
YEAR
2010
HUL WON CUSTOMER AND BRAND LOYALTY AWARD IN THE CONSUMER NON DURABLES SECTOR. HUL RANKED FOURTH IN THE TOP COMPANIES FOR LEADERS, 2009 FOR THE ASIA PACIFIC REGION AND BAGGED THE 10TH PLACE IN THE GLOBAL RANKINGS. HUL WAS AWARDED THE CNBC AWAAZ CONSUMER AWARDS 2009 IN THREE CATEGORIES: MOST PREFERRED PERSONAL CARE COMPANY, MOST PREFERRED HOME
AWARDS & RECOGNISITIONS
HUL WON TWO PRESTIGIOUS AWARDS AT THE WORLD HRD CONGRESS 2010: 'THE MOST ADMIRED & BEST HR TEAM AWARD' AND OUR EXECUTIVE DIRECTOR-HR, LEENA NAIR WAS AWARDED THE 'HR SUPER ACHIEVER OF THE YEAR' AWARD
ACHIEVEMENT
(COMPANIES OFFICIAL WEBSITE)
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2009
CARE COMPANY AND VALUE FOR MONEY BRAND OF THE YEAR. HULS PROJECT SHAKTI WON THE SILVER TROPHY OF THE EMPI-INDIAN EXPRESS INDIAN INNOVATION AWARDS. AD CLUB EMVIES: HINDUSTAN UNILEVER HAS BAGGED 7 AWARDS (2 GOLD, 2 SILVER AND 3 BRONZE) ACROSS CATEGORIES, THE ONLY COMPANY WITH MAXIMUM WINS. HUL WON THE BOMBAY CHAMBER CIVIC AWARD 2007 IN THE CATEGORY OF SUSTAINABLE ENVIRONMENTAL INITIATIVES, FOR ITS WATER CONSERVATION AND HARVESTING PROJECT AT KARCHOND VILLAGE, SILVASSA, DADRA AND NAGAR HAVELI. HUL WON THE UK TRADE & INVESTMENT INDIA BUSINESS AWARD IN THE INNOVATION CATEGORY FOR PUREIT. IN 2007, HINDUSTAN UNILEVER WAS RATED AS THE MOST RESPECTED COMPANY IN INDIA FOR THE PAST 25 YEARS BY BUSINESS WORLD , ONE OF INDIAS LEADING BUSINESS MAGAZINES. MR.D.S.PAREKH HUL IN DEPEND DIRECTOR RECEIVED FOR SERVICES TO FINANCIAL SERVICES AND BANKING INDUSTRY IN INDIA AND BEST NON-EXECUTIVE DIRECTOR 2006 BY THE ASIAN CENTRE FOR CORPORATE GOVERNANCE.
2008
2007
2006
CORPORATE SOCIAL RESPONSIBILITY

THE WATER USAGE PER TONNE HAS BEEN REDUCED BY MORE THAN 32% IN ITS OWN MANUFACTURING OPERATIONS AGAINST A BASELINE OF 2004.
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MORE THAN 50% OF OUR OWN MANUFACTURING UNITS HAVE A RAIN WATER HARVESTING FACILITY. AS ON DATE, FIVE COMPANY UNITS RETURN MORE WATER TO GROUND THAN BEING CONSUMED BY THEM.
THE ENERGY CONSUMPTION AND CO PER UNIT OF PRODUCTION SINCE 2004 HAS ALSO COME DOWN BY 38% AND 28% RESPECTIVELY.
COMPANY HAS INITIATED WORKS IN THE AREA OF SUSTAINABLE AGRICULTURE SOURCING FOR TEA, FRUITS & VEGETABLES AND PALM OIL.
THE COMPANY HAS STARTED DEVELOPING INDIAN PRODUCERS FOR TOMATO PASTE. WE ARE WORKING CLOSELY WITH KEY PRODUCERS AND THE INITIATIVES INCLUDE WATER CONSERVATION, USE OF AUTHORIZED PESTICIDES, LAND CONSERVATION AND IMPROVEMENT OF FARMER INCOME.
THE BRAND PARTNERED WITH THE GOVERNMENT OF TAMIL NADU AND ORGANIZED A MASSIVE EVENT ON GLOBAL HAND WASHING DAY (15TH OCTOBER, 2009) WHEREIN OUT OF 47,000 CHILDREN THAT WASHED THEIR HANDS ON THAT DAY, 15,000 WASHED THEIR HANDS IN PERFECT HARMONY TO STAKE CLAIM TO THE GUINNESS RECORD FOR THE MOST PEOPLE WASHING THEIR HANDS SIMULTANEOUSLY.
IN THE AREA OF HEALTH AND HYGIENE, DURING THE SWINE FLU EPIDEMIC, 'LIFEBUOY' UNDERTOOK RALLIES IN KEY EFFECTED CITIES, WHERE THE MESSAGE OF THE IMPORTANCE OF HAND WASHING WAS EMPHASIZED, IN PREVENTING SWINE FLU.
THE VAST MAJORITY OF HULS PRODUCTS REACH THE CONSUMERS WITHOUT BEING TESTED ON ANIMALS. YOUR COMPANY STARTED THE SANKALP INITIATIVE OF EMPLOYEE VOLUNTEERING IN THE 75TH YEAR OF ITS EXISTENCE IN INDIA. IN 2008 OUR EMPLOYEES UNDERTOOK VOLUNTEERING AND COMMUNITY SERVICE TOTALING
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MORE THAN 48,000 HOURS AGAINST A TARGET OF 27,375 HOURS. IN 2009 WE HAVE ACHIEVED MORE THAN 1, 15,000 HOURS OF VOLUNTEERING. (ANNUAL REPORT 2010, P.38 & SUSTAINABILITY REPORT 2010, P.10)
PRODUCTS PROFILE
PRODUCT CATEGORIES/SEGMENTS
Two out of three Indians use Hindustan Unilever products. From feeding your family to keeping your home clean and fresh, our brands are part of everyday life.
Health, hygiene & beauty
Nutrition
Food
Beverages
Water
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Personal care
Home care
3 SEGMENTS IN DETAIL
HUL IS THE PROUD OWNER OF AROUND 35 MAJOR INDIAN BRANDS. HUL HAS DIVIDED ITS PRODUCTS INTO FOLLOWING CATEGORIES:
1.
FOOD BRANDS:
HUL IS ONE OF INDIAS LEADING FOOD COMPANIES. COMPANIES PASSION FOR UNDERSTANDING WHAT PEOPLE WANT AND NEED FROM THEIR FOOD - AND WHAT THEY LOVE ABOUT IT-MAKES THEIR FOOD BRANDS A POPULAR CHOICE.
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S.NO
BRAND
KEY FACTS
2.
HOME CARE BRANDS: HUL HAS A DIVERSE PORTFOLIO OF BRANDS

OFFERING HOME CARE SOLUTIONS FOR MILLIONS OF CONSUMERS ACROSS INDIA.
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3.
PERSONAL CARE BRANDS: OUR PERSONAL CARE BRANDS,

INCLUDING AXE, DOVE, LUX, POND'S, REXONA AND SUNSILK, ARE RECOGNISED AND LOVE BY CONSUMERS ACROSS INDIA. THEY HELP CONSUMERS TO LOOK GOOD AND FEEL GOOD AND IN TURN GET MORE OUT OF LIFE.
S.NO
1
BRANDS
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5 6
SUPERIA SHAMPOO V/S CLINIC PLUS

THE SUPERIA RANGES OF SHAMPOOS HAVE BEEN LAUNCHED TO CATER TO THE LARGE POPULAR MARKET IN THE PERSONAL CARE CATEGORY. THE PRODUCTS UNDER THE SUPERIA BRAND ARE MADE FROM SCIENTIFICALLY DEVELOPED FORMULATION ENRICHED WITH NATURAL INGREDIENTS THAT HAVE TRADITIONALLY BEEN KNOWN TO BE GOOD FOR THE SKIN AND HAIR.
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THE RANGE OFFERS CONSUMERS ACCESS TO SOME OF THE BEST-IN-CLASS PRODUCTS IN VIBRANT ATTRACTIVE PACKAGING. SUPERIA SHAMPOO WITH TRIPLE CONDITIONERS AND NATURAL INGREDIENTS BRING A NATURAL SHINE TO HAIR. SUPERIA SHAMPOOS ARE AVAILABLE IN TWO VARIANTS:
1. SHINY BLACK WITH TRIPLE CONDITIONER AND NATURAL GOODNESS OF
HIBISCUS & BRAHMI EXTRACTS.

2.
VIBRANT GREEN WITH TRIPLE CONDITIONER AND THE NATURAL GOODNESS OF AMLA & ARNICA EXTRACTS.
3. MAXI
PROTECT ACTIVE HEALTH SHAMPOO CONTAINS DANDRUFF
FIGHTER ALONG WITH VITAMINS & SOYA PROTEIN. IT FIGHTS MULTIPLE TYPES OF DANDRUFF CAUSING GERMS AND LEAVES HAIR & SCALP FEELING CLEAN & HEALTHY. CLINIC HEALTH SHAMPOO WAS LAUNCHED IN INDIA IN THE YEAR 1987.IT IS INDIAS LARGEST SELLING SHAMPOO, OFFERING THE FIVE MOST IMPORTANT HAIR HEALTH BENEFITS STRENGTHENS WEAK HAIR, PREVENTS HAIR BREAKAGE, SOFTNESS ROUGH DRY HAIR, SHINE FOR THICK AND HEALTHY HAIR, AND CONTAINS ANTI- DANDRUFF INGREDIENT. THE FRANCHISE ALSO INCLUDE CLINIC ALL CLEAR TOTAL, FIRST INTRODUCED IN 1996. IT IS A DUAL SHAMPOO IT IS NOT ONLY FIGHTING THE LAST DANDRUFF FLAKE, BUT ALSO ADDS BACK LOST NUTRIENTS TO MAKE HAIR HEALTHY AND BEAUTIFUL. CLINIC ALL CLEAR DANDRUFF SOLUTION FOR EVERYDAY USE. SUPERIA SHAMPOO V/S CLINIC PLUS SHAMPOO BASIS PRODUCT SHAMPOO QUANTITY PRICE ITC SUPERIA 4/8/50/100 ML .5/1/7/15 RS HUL CLINIC PLUS 3.5/6.5/40/100/200/400 ML .5/1/10/46/72/149 RS
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CFC/CLD WD/RS MARGIN MARGIN IN SHAMPOO PTR VARIANT
3000/1920/24/12 UNIT 3% 23% ON SACHET 10% BTL .40/.81/6.36/13.63 MAXI PROTECT VIBRENT GREEN SHINY BLACK
1280/1536/144/72/36/18 UT 5.76%/2.76% 23% ON SACHET 10% BTL .40/.81/9.09/41.81/65.45/ CLINIC PLUS CLINIC+ ANTI DANDRUFF CLINIC+AYURVEDIC 68167 LTR POPULAR
SALE IN BHOPAL SEGMENT
1736 LTR POPULAR
SUPERIA SOAP V/S BREEZE THE SUPERIA RANGES
SHAMPOOS HAVE BEEN LAUNCHED TO CATER TO THE LARGE POPULAR MARKET IN THE PERSONAL CARE CATEGORY. THE PRODUCTS UNDER THE SUPERIA BRAND ARE MADE FROM SCIENTIFICALLY DEVELOPED FORMULATION ENRICHED WITH NATURAL INGREDIENTS THAT HAVE TRADITIONALLY BEEN KNOWN TO BE GOOD FOR THE SKIN AND HAIR.
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THE RANGE OFFERS CONSUMERS ACCESS TO SOME OF THE BEST IN-CLASS PRODUCTS IN VIBRANT ATTRACTIVE PACKAGING. SUPERIA SOAPS ENRICHED WITH NATURAL INGREDIENTS GIVE RADIANT GLOWING SKIN. SUPERIA SOAPS ARE AVAILABLE IN FIVE VARIANTS:
. FRAGRANT
FLOWER: WITH
THE
FRAGRANCE OF ROSE & LAVENDER OIL . SOFT SANDAL: WITH THE FRAGRANCE OF SANDAL & ALMOND OIL . NATURAL GLOW: WITH NEEM &
COCONUT OILS . HEALTHY GLOW: WITH ORANGE OIL LEMON FRESH IS ANOTHER VARIANT LAUNCH UNDER IN SUPERIA SOAP. BREEZE BREEZE SCENT MAGIC IS THE SOAP WHICH FULFILLS THE ASPIRATIONS OF WOMEN OF RURAL INDIA. BREEZE HAS OFFERED THEM BEAUTY AT AN AFFORDABLE PRICE MAKE THEM BEAUTIFUL. BREEZE COMES IN 4 EXOTIC FRAGRANCES ROSE, SANDAL, LIME, RAJNIGANDHA. ALL THIS AT VERY AFFORDABLE PRICE FOR THE MASSES.
SUPERIA SOAP V/S BREEZE SOAP BASIS PRODUCT SOAP QUANTITY PRICE CFC/CLD ITC SUPERIA 41/70/90/120 5/30/30/50 216/36/48/24 HUL BREEZE 50/90/125 GM 5/30/50 144/36/30
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WD/RS MARGIN MARGIN IN SOAP PTR VARIANT
3% 8% 4.62/27.77/27.77/46.29 FRAGNENT FLOWER LEMON FRESH SOFT SANDLE HEALTHY GLOW NATURAL GLOW
5.76%/2.76 8% 4.62/27.77/46.29 ROSE LIME SANDLE FRUIT MORNING MUSKAAN RAJNIGANDHA 32400 KG POPULAR
15282 KG POPULAR
VIVEL SHAMPOO V/S SUNSILK THE VIVEL RANGE OF SHAMPOOS IS AVAILABLE IN THREE VARIANTS:
VIVEL SHINE & GLOW IS SUITABLE FOR DULL TO NORMAL HAIR AND IS ENRICHED WITH GREEN TEA EXTRACT AND CONDITIONERS. IT ADDS SHINE TO HAIR.
VIVEL SOFT & FRESH IS SUITABLE FOR DRY TO NORMAL HAIR AND CONTAINS EXTRA CONDITIONERS AND SOYA PROTEIN. IT MAKES HAIR SOFT AND FRAGRANT.
VIVEL VOLUME & BOUNCE IS SUITABLE FOR OILY TO NORMAL HAIR AND CONTAINS JOJOBA OIL AND CONDITIONERS. IT ADDS VOLUME AND BOUNCE TO HAIR.
SUNSILK SHAMPOO:
SUNSILK SHAMPOO IS AVAILABLE IN THE MARKET
DIFFERENT SKUS AND DIFFERENT VARIANT. SUNSILK SHAMPOO HAVE A STRONG DEMAND IN THE MARKET AND HUL SHAMPOOS MARKET IS MAJORLY COVER BY SUNSILK.
57
VIVEL SHAMPOO V/S SUNSILK BASIS PRODUCT SHAMPOO QUANTITY PRICE CFC/CLD WD/RS MARGIN MARGIN PTR VARIANT ITC VIVEL 9.6/100/200 ML 2/49/89 360/12/12 UNIT 3% 23% ON SACHET10 BTL 1.62/44.54/80.90 VOLUME BOUNCE SOFT & FRESH SHINE & GLOW HUL SUNSILK 6.5/6.5/40/100/200/400 ML 1/2/15/54/105/169 RS 512/512/144/72/36/18 UNIT 5.76%/2.76 23% ON SACHET10 BTL .81/1.62/13.63/49.09/95.45 DAMAGE REPAIR PINK YELLOW BLACK SMOOTH HAIR FALL 605 LTR SEMI PREMIUM
246 LTR SEMI PREMIUM
57
VIVEL SOAP BETWEEN FEBRUARY AND JUNE 2008, ITC EXPANDED ITS PERSONAL CARE PORTFOLIO WITH THE LAUNCH OF VIVEL DI WILLS AND VIVEL BRANDS. VIVEL DI WILLS, A RANGE OF SOAPS, AND VIVEL, A RANGE OF SOAPS CATER TO THE SPECIFIC NEEDS OF A WIDE RANGE OF CONSUMERS. VIVEL DI WILLS AND VIVEL ARE HIGH QUALITY RANGES OF SOAPS FOR THE UPPER-MID AND MID-MARKET CONSUMER SEGMENTS. ALL PRODUCTS OFFER A UNIQUE VALUE PROPOSITION OF BRINGING TOGETHER INGREDIENTS THAT PROVIDE THE BENEFIT OF NOURISHMENT, PROTECTION AND MOISTURISATION THROUGH ONE PRODUCT, WHICH MAKES HER BEAUTIFUL AND CONFIDENT. THE VIVEL range of soaps is available in five variants: VIVEL YOUNG GLOW IS ENRICHED WITH VITAMIN E AND FRUIT INFUSIONS WHICH HELP IN PROVIDING YOUTHFUL GLOW TO THE SKIN. VIVEL SATIN SOFT IS ENRICHED WITH VITAMIN E AND ALOE VERA WHICH HELP THE SKIN FEEL BEAUTIFULLY SOFT. VIVEL SANDAL SPARKLE IS ENRICHED WITH SANDALWOOD OIL AND ACTIVE CLAY WHICH HELPS IN PROVIDING CLEAR SKIN. VIVEL AYURVEDA ESSENCE IS ENRICHED WITH MULTIPLE AYURVEDIC INGREDIENTS WHICH HELP PROTECT SKIN FROM GERMS AND HARSH ENVIRONMENT, KEEPING IT HEALTHY AND BEAUTIFUL. VIVEL SILK SPRING IS ENRICHED WITH GREEN APPLE EXTRACTS AND OLIVE OIL WHICH HELP IN MAKING SKIN SMOOTH.
57
ANOTHER ONE RANGE OF VIVEL SOAP IN RECENTLY LAUNCH IN THE YEAR 2010 THAT IS VIVEL DEO SPRIT.
VIVEL SOAP V/S LUX SOAP BASIS PRODUCT SOAP QUANTITY PRICE CFC/CLD WD/RS MARGIN MARGIN IN SOAP PTR VARIANT ITC VIVEL 41/70/92/100/125 5/10/54/15/70 192/144/36/24 3% 8% 4.62/9.25/50/13.89/64.81 YOUNG GLOW SATIN SOFT SANDLE SPARKLE VIVEL DEO SPRIT SALE IN BHOPAL SEGMENT 4582 KG POPULAR HUL LUX 40/70/90/110 6/10/15/52/65 192/144/36/30 5.76%/2.76% 8% 6.48/9.25/13.88/48.14 PEACH AND CREAM PURPLE PINK BLACK 12000 KG POPULAR
LUX INTERNATIONAL SINCE 1929, LUX IN STEP WITH THE CHANGING TRENDS AND EVOLVING BEAUTY NEEDS OF THE CUSTOMERS, OFFER AN EXCITING RANGE OF SOAPS AND BODY
57
WASHES WITH UNIQUE ELEMENT TO MAKE BATHING TIME MORE PLEASURABLE. ONE CAN CHOOSE FROM A RANGE OF SKIN ARE BENEFITS LIKE FIRMING, FAIRNESS AND MOIST RING. LUX STANDS FOR THE PROMISE OF BEAUTY AND GLAMOUR AS ONE OF INDIAS MOST TRUSTED PERSONAL CARE BRANDS. LUX BELIEVES IN PASSION FOR BEAUTY. IT CONTINUOUS TO BE A FAVORITE WITH GENERATION OF USERS FOR THE EXPERIENCE OF A SENSUOUS AND LUXURIOUS BATH. LUX BELIEVES THAT FEMININITY SHOULDNT BE DENIED. SINCE ITS LAUNCH IN INDIA IN THE YEAR 1929, LUX HAS OFFERED A RANGE OF SOAPS IN DIFFERENT SENSUOUS COLORS AND WORLD CLASS FRAGRANCE. LUX IS A BEAUTY SOAP OF FILM STARS, LUX RECOGNIZE THE NEED FOR A COMPELLING MESSAGE ABOUT BEAUTY THAT WOULD RESONATE WITH WOMEN OF TODAY. LUX HAS LAUNCHED ITS TWO FRUIT EXTRACT VARIANTS NEW LUX STRAWBERRY & CREAM AND LUX PEACH & CREAM CONTAINS A BLEND OF SUCCULENT FRUITS & LUSCIOUS CHANTILLY CREAM THAT MELTS DOWN INTO YOUR SKIN MAKING IT SOFT AND SMOOTH. THE VIVEL DI WILLS range of Soaps is available in two variants. VIVEL DI WILLS SHEER RADIANCE IS ENRICHED WITH OLIVE OIL, TO PROVIDE SKIN LUSTRE TO MAKE IT RADIANT. VIVEL DI WILLS SHEER CRME IS ENRICHED WITH SHEA BUTTER, TO MOISTURIZE SKIN TO MAKE IT SOFT AND SUPPLE. VIVEL DI WILLS V/S LUX INTERNATIONAL BASIS PRODUCT SOAP QUANTITY PRICE CFC/CLD WD/RS MARGIN MARGIN IN SOAP ITC VIVEL DI WILLS 75/100 GM 20/49 192/144 3% 8% HUL LUX INTERNATIONAL 100 20 144 5.76%/2.76% 8%
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PTR VARIANT SALE IN BHOPAL SEGMENT
18.51/45.37 SHEER RADIANCE SHER CREAM 184 KG SEMI POPULAR
18.51 LUX INTERNATIONAL 1918 KG SEMI POPULAR
FIAMA DI WILLS V/S DOVE IN SEPTEMBER 2007, ITC LAUNCHED FIAMA DI WILLS, A PREMIUM RANGE OF PERSONAL CARE PRODUCTS COMPRISING SHAMPOOS, CONDITIONER, SHOWER GELS AND BATHING BAR. THE FIAMA DI WILLS RANGE COMBINES THE GOODNESS OF NATURE AND SCIENCE, PROVIDING GENTLE AND EFFECTIVE CARE. THE FIAMA DI WILLS PRODUCT PORTFOLIO HAS BEEN DEVELOPED BY SCIENTISTS AT THE ITC R&D CENTRE, LEVERAGING THE EXPERTISE OF INTERNATIONAL PRODUCT FORMULATION SPECIALISTS. THE FRAGRANCES, AESTHETICS AND PACKAGING HAVE BEEN DEVELOPED IN COLLABORATION WITH EUROPEAN SPECIALISTS. FIAMA DI WILLS PRODUCTS ARE TARGETED AT THE YOUNG, MODERN, AWARE CUSTOMERS WHO ARE CONFIDENT OF THEMSELVES AND SEEK INDULGENCES THAT MAKE THEM FEEL ALIVE AND BEAUTIFUL. THE RANGE COMBINES EXOTIC NATURALS LIKE SAGE, WATERCRESS, MAGNOLIA BLOSSOMS AND THE BEST OF CONTEMPORARY SCIENCE LIKE HYDRO RESTORATIVE SYSTEM AND
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CUTICLE RESTORE TECHNOLOGY TO MAKE THE CONSUMER FEEL BEAUTIFUL, TODAY, TOMORROW. FIAMA DI WILLS SHAMPOOS DEVELOPED IN COLLABORATION WITH COSMETIC LABS INC., USA, OFFER A RANGE OF FIVE VARIANTS. EACH OF THESE IS DESIGNED TO DELIVER A SPECIFIC HAIR BENEFIT TO THE CONSUMER
EVERYDAY MILD (WITH EXTRACTS OF THYME & JUNIPER) IS A GENTLE CARING SHAMPOO SUITABLE FOR REGULAR USE. AQUA BALANCE (WITH EXTRACTS OF MAGNOLIA DULL HAIR. BLOSSOMS &
WATERCRESS) IS A GENTLE MOISTURIZING SHAMPOO IDEAL FOR DRY,
VOLUME BOOST (WITH EXTRACTS OF ROSEMARY & SAGE) IS A GENTLE VOLUMIZING SHAMPOO IDEAL FOR THIN, LIMP HAIR. SILKY STRONG (WITH OILS OF MACADAMIA NUT AND BABASSU) HELPS MAKE HAIR SMOOTH, SILKY AND STRONG AND IS IDEAL FOR WEAK, DAMAGED HAIR.
SHINE IN STYLE (WITH EXTRACTS OF CHAMOMILE AND GREEN TEA) MAKES HAIR SHINY AND MANAGEABLE, EASY TO STYLE AND IS IDEAL FOR DULL TO NORMAL HAIR.
EACH OF THESE SHAMPOOS CAN BE COMPLEMENTED WITH FIAMA DI WILLS
THE FIAMA DI WILLS PRODUCT LINE ALSO CONSISTS OF A 3-VARIANT RANGE OF TRANSPARENT SHOWER GELS WHICH ARE UNIQUE AS THEY COME WITH SUSPENDED BEADS. POLISHING DROPS CONDITIONER. THIS GENTLE CONDITIONER ENRICHED WITH AVOCADO OIL AND BURDOCK EXTRACT PROMISES TO MAKE HAIR SHINY, SOFT AND SMOOTH. IT ALSO GIVES THE ADDITIONAL BENEFITS OF UV PROTECTION AS IT CONTAINS SUNFLOWER SEED EXTRACT, WHICH IS A
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NATURAL UV ABSORBER. MILD DEW (CONTAINS SOFT BEADS, EXTRACTS OF PEACH AND AVOCADO) IS FOR SOFT, MOISTURIZED SKIN. CLEAR SPRINGS (CONTAINS JOJOBA BEADS, EXTRACTS OF SEA WEED AND LEMONGRASS) IS FOR CLEAR, HEALTHY, SMOOTHER SKIN. EXOTIC DREAM (CONTAINS GLITTER BEADS, EXTRACTS OF BEARBERRY LEAVES AND BLACK CURRANT) IS FOR STIMULATING FRESHNESS. THE FIAMA DI WILLS RANGE OF BATHING BARS HAS BEEN LAUNCHED UNDER THE SUB - BRAND SKIN SENSE. THE FIRST VARIANT TO BE INTRODUCED IN THIS RANGE IS SOFT GREEN. THIS IS A GENTLE CARING BATHING BAR, THAT HELPS ENHANCE RETENTION OF SKIN PROTEINS GIVING 6 PRO CARES. PROTEIN KEEPS SKIN MOISTURIZED, SUPPLE, YOUTHFUL, EVEN TONED, RADIANT AND SMOOTH. FIAMA DI WILLS SHAMPOO V/S DOVE SHAMPOO BASIS PRODUCT SHAMPOO QUANTITY PRICE CFC/CLD WD/RS MARGIN MARGIN IN SOAP PTR VARIANT ITC FIAMA DI WILLS 9/100/200 3/59/109 360/12/12 UNIT 3% 23%ON SACHET BTL 2.43/53.63/99.09 EVERY DAY MILD AQUA BALANCE SILKY STRONG VOLUME BOOST SHINE STYLE SALE IN BHOPAL 236 LTR 805 LTR HUL DOVE 9/100/200/500 3/69/115 512/72/36/12 5.76%/2.76% 10% 23%ON SACHET 10% BTL 2.43/62.72/104.54 BREAKAGE THERAPY DAILY CARE THERPY ANTI-DANDRUFF HAIR FALL THERPY
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SEGMENT
PREMIUM
PREMIUM
FIAMA DI WILLS RECENTLY LAUNCHED A RANGE OF TRANSPARENT GEL BATHING BARS. A FIRST OF ITS KIND, A TRANSPARENT LIQUID GEL HAS BEEN SOLIDIFIED INTO A BATHING BAR SO THAT CONSUMERS GET A SUPERIOR BATHING EXPERIENCE. THE SHOWER GEL IN A BATHING BAR FORMAT WHICH HAS BEEN CRAFTED THROUGH A UNIQUE AND PATENTED FREEZING TECHNOLOGY. BACKED BY DEEP CONSUMER INSIGHTS, THIS PROPRIETARY GEL BATHING BAR IS A RESULT OF YEARS OF EXTENSIVE RESEARCH AND DEVELOPMENT BY THE SCIENTISTS AT THE ITC R&D CENTRE. UNIQUELY CRAFTED, THESE GEL BATHING BARS ARE SHAPED LIKE DEW DROPS, HAVE A TRANSPARENT LOOK, RICH CREAMY LATHER, AND A GREAT LONG-LASTING FRAGRANCE. THESE BATHING BARS ARE DERMATOLOGICAL TESTED AND PROVEN MILD AND CONTAIN THE GOODNESS OF NATURAL EXOTIC EXTRACTS LIKE PEACHES, AVOCADOES, SEA WEED AND LEMONGRASS. LAUNCHED IN TWO VARIANTS THAT OFFER SPECIFIC DIFFERENT SKIN BENEFITS, ARE:MILD DEW - CONTAINS EXTRACTS OF PEACH AND AVOCADO WHICH
57
MOISTURIZE
THE
SKIN.
CLEAR
SPRINGS
CONTAINS
EXTRACTS
OF
LEMONGRASS & SEA WEED WHICH GIVES CLEAR SKIN. THE FIAMA DI WILLS TRANSPARENT GEL BATHING BARS ARE AVAILABLE AT AN ATTRACTIVE PRICE OF RS. 25 FOR 110 GRAMS. THIS DIFFERENTIATED RANGE OF BATHING BARS OFFERS THE CONSUMER A DELIGHTFUL BATHING EXPERIENCE DOVE DOVE SOAP, WHICH WAS LAUNCHED BY UNILEVER IN 1957, HAS BEEN AVAILABLE IN INDIA SINCE 1995. IT PROVIDES A REFRESHINGLY REAL ALTERNATIVE FOR WOMEN WHO RECOGNIZE THAT BEAUTY IS NOT SIMPLY ABOUT HOW YOU LOOK, IT IS ABOUT HOW YOU FEEL. THE SKINS PH IS SLIGHTLY ACIDIC 5.5-6 ORDINARY SOAPS TEND TO BE ALKALINE, WITH PH HIGHER THAN 9. DOVE IS FORMULATED TO BE PH NATURAL (PH BETWEEN 6.5 AND 7.5) AND TO BE MILD ON SKIN. THIS MAKES IT SUITABLE FOR ALL SKIN TYPES FOR ALL SEASONS. WHILE DOVE SOAP BAR IS WIDELY AVAILABLE ACROSS THE COUNTRY, DOVE BODY WASH IS AVAILABLE IN SELECTED OUTLETS. GLOBALLY DOVE HAS BEEN EXTENDED TOO MANY OTHER COUNTRIES. SINCE THE 1980S FOR EXAMPLE, UNILEVER HAS LAUNCHED A MOISTURIZING BODY WASH DEODORANT, BODY LOTION, FACIAL CLEANSERS AND SHAMPOOS AND CONDITIONERS, PROVIDING A COMPREHENSIVE RANGE OF SOLUTION TO BRING OUT TRUE INNER BEAUTY. FIAMA DI WILLS SOAP V/S DOVE SOAP BASIS PRODUCT SOAP QUANTITY PRICE CFC/CLD WD/RS MARGIN MARGIN IN SOAP PTR ITC FIAMA DI WILLS 70/100/300 30/40/100 72/72/24 UNIT 3% 8% 27.77/37.03/92.59 HUL DOVE 50/75/300 20/33/125 72/48/20 5.76%/2.76% 8% 18.51/30.55/115.74
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VARIANT SALE IN BHOPAL SEGMENT
SOFT GREEN 88 KG PREMIUM
DOVE WHITE 1512 KG PREMIUM
ITC V/S HUL SUPPLY CHAIN

ITCS SUPPLY CHAIN STRUCTURE
COMPANY HUB FACTORY
CARRYING AND FORWARDING AGENT
WHOLESALE DEALERS SMALL WHOLESALE DEALER RETAILER
CONSUME R 57
HINDUSTAN UNILEVER LIMITED SUPPLY CHAIN STRUCTURE
HINDUSTAN UNILEVER LIMITED
CARRYING AND FORWARDING AGENTS REDISTRIBUTION STOCKISTS
WHOLESALERS URBAN RETAILER
RURAL RETAILER
CONSUMER
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DISTRIBUTION OF GOODS IN HUL

IN BHOPAL HUL HAVE NOT OPENED THE OFFICE THEY HAVE A DISTRIBUTOR WHO ARE WORKING IN THE BHOPAL MARKET. IN THE HUL RSM (REDISTRIBUTION STOCKIEST MAN) GO TO THE MARKET FOR SELLING THE PRODUCT AND TAKE THE ORDER FROM RETAILER AND WHOLESALER AND ALSO GIVE INFORMATION ABOUT SCHEMES UPCOMING PRODUCT AND THEY ARE COLLECT CASH FROM SHOPKEEPER AND CLEAR THE BILLS OF SHOPKEEPER. WHICH ORDER THEY ARE TAKING FROM THE SHOPKEEPER THEY GIVE THE ORDER TO COMPUTER OPERATOR AND OPERATOR IS UPLOADED THE DATA IN SERVER OF RS (REDISTRIBUTION STOCKIEST) THEN DATA IS SEND TO THE BRANCH OFFICE (INDORE) AND IN BRANCH OFFICE PLANNING COMMITTEE IS FORWARD THE DATA TO C&F AGENT THEN C&F AGENT MAKE INVOICE AND SEND THE GOODS TO THE DISTRIBUTOR AND DISTRIBUTOR SUPPLY GOODS IN THE MARKET. HUL IS WORKING WITH SECONDARY SALE. SECONDARY SALE MEANS
DISTRIBUTOR TO CUSTOMER. THE DISTRIBUTOR HAS NOT KEEP THE STOCK, AFTER THE ORDER GOODS WILL BE SENDING BY THE C&F AGENT TO DISTRIBUTOR AND DISTRIBUTOR PROVIDE THE GOODS. HUL WANT TO AVOID THE CAPITAL BLOCKAGE OF RS. IN THE SECONDARY SALE METHOD CREDIT RISK AVOIDED AND HUL GET THE PAYMENT FROM CUSTOMER WITHIN 15 DAYS. HUL USE A SOFTWARE THAT IS KNOWN UNIFY AND FOR TAKING THE ORDER THEY ARE USED HHT MACHINE. IN THE HHT MACHINE LOOK LIKE A BIG CELL PHONE AND ALL PRODUCTS ITS VARIANT MARGIN COST, PRODUCT COST, ALL THE INFORMATION WHICH ARE REQUIRED A SALES PERSON TO SALE HIS PRODUCT
57
THAT IS IN THE HHT. HUL HAS GIVE CREDIT TO HIS CUSTOMER AVERAGE 20 DAYS (ITS DEPEND UPON PRODUCT NATURE IN FOOD CREDIT WILL BE FOR 7 DAYS). HUL SUPPLY THE GOODS TO THE CUSTOMER AFTER NEXT DAY (N+2). IN THE HUL FORM THE COMPANY SIDE ANY OFFICIAL VISIT OF SENIOR IS NOT CONDUCTED. HUL NOT GIVE THE SALARY OF NON - GTM SALES MAN AND THE DISTRIBUTOR EXPENSES. HUL GIVE THE ROI (RETURN ON INVESTMENT) 20% TO 24%. HUL GIVE MARGIN TO GTM TOWN 2.76% (RSM SALARY IS ALSO GIVEN BY THE HUL) & NONGTM TOWN 5.76% GROSS MARGIN. DISTRIBUTOR WILL BE BEARING THE COST OF RSM. NON-GTM TOWNS THOSE DISTRIBUTOR IN HUL WHO ARE KEEP THE STOCK IN AND THEY DEAL IN SEMI URBAN AREA.
DISTRIBUTION OF GOODS IN ITC

IN THE ITC BHOPAL THEY ARE WORKING ON THE PRIMARY AND SECONDARY SALE BOTH. ITC HAVE 5 DISTRIBUTORS IN BHOPAL AND EVERY DISTRIBUTOR MARKET IS DECIDED BY THE COMPANY. DS (DISTRIBUTOR SALESMAN) GO TO THE MARKET SELLING GOODS TAKING THE ORDER GIVE THE INFORMATION ABOUT THE SCHEMES AND CHECK EXPIRY OF THE GOODS AND CHECK THE REPLACEMENT AND ALSO CHECK THE VISIBILITY OF PRODUCT IN THE SOAP AND AFTER THIS HE COLLECT THE CASH FROM SHOP KEEPER. IN ITC DS USE VAJRA MACHINE FOR BOOKING THE ORDER AND SHOW THE PRODUCTS ADDS UPCOMING PRODUCTS, PRICE, MARGIN, SIZE IN THIS MACHINE. VAJRA LOOK LIKE A BIG MOBILE PHONE UNDER THIS ALL INFORMATION RELATED TO PRODUCTS ARE IN THE MACHINE. ORDER WHICH IS TAKEN BY THE MACHINE SINKS TO THE DATA TO BRANCH OFFICE. WD SYSTEM OPERATOR MAKES THE INVOICE AND SENDS GOODS TO MARKET NEXT DAY. ITC GIVE THE K 4 TO THE WD AND ALSO GIVE THE SALARY OF SALES MAN AND SALARY OF SUPERVISOR DISTRIBUTION COST PER VEHICLE AND GIVE THE SUPPLY COST OF E-CHOUPAL. ITC GIVE CREDIT TO HIS CUSTOMER FOR 15 DAYS. IN ITC BRANCH MANAGER QUARTERLY, AREA MANAGER MONTHLY, AREA EXECUTIVE WEEKLY VISITED IN THE MARKET COMMUNICATES WITH CUSTOMER DIRECTLY. THEY INTERACT WITH CUSTOMER AND IF CUSTOMERS HAVE ANY PROBLEM RELATED TO GOODS AND SERVICES
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WHICH IS PROVIDED BY COMPANY THEY TRY TO SOLVE. THEY CHECK STOCK IS PROPERLY IN THE MARKET OR NOT DISPLAYS AND ADS ARE PROPERLY DONE OR NOT. ITC USE SOFTWARE THAT IS CALLED SIFY. ALL THE BILLS AND DETAIL INFORMATION PRODUCT WISE, VARIANT WISE, SUMMARIZE SALES REPORTS ARE MAKE IN THE HELP OF THIS SOFTWARE. FORMAT OF SALES REPORT CODE OF THE GOODS ARE IN THIS.ITC GIVE 3% MARGIN TO HIS DISTRIBUTORS AND BEAR VEHICLE COST 380 RS PER VEHICLE. ITC GIVE TRAINING TO HIS SALES MAN FOR SELLING THE GOODS IN THE MARKET AND GIVE THE TRAINING HOW TO USE SALES TOOLS IN THE MARKET HOW TO COMMUNICATE WITH CUSTOMER. SALESMAN OPERATION (S SMART C OPERATION OF ITCS DISTRIBUTOR SALESMAN)
Salutation Stock Check Merchandising Start with Scheme Rigor in Take order looking (replacement) Collect Cash & close talk
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ALL DS (DISTRIBUTOR SALESMAN) IN ITC FOLLOW THIS METHOD TO WORKING IN THE MARKET.ITC MAINTAIN GOOD RELATION WITH HIS CUSTOMER, WHOLESALE DEALER, SALESMAN THROUGH VARIOUS WAY AND PROVIDE INCENTIVES TO HIS WD AND DS BOTH. FOR APPRECIATION OF SALESMAN ITC ORGANIZE THE BEST SALESMAN COMPETITION BETWEEN THE SALESMAN AND THE BEST SELLING WD BETWEEN ALL WD. PROVIDE PRIZES AND TROPHY TO THE WINNER FOR HIS WORK. SCHEMES TRADE SCHEMES CONSUMER SCHEMES TRADE ACTIVATION SCHEMES COUPON SCHEMES CHANNEL WISE SCHEMES 1. WHOLE SELLER 2. MASS RETAIL CHANNEL (TOP END OUTLETS) SUPERCENTERS BIG BAZAAR 3. MODERN TRADE (RELIANCE FRESH RETAIL SHOPS) 4. KIOSK (SMALL SHOP KEEPER)
IF WE ARE COMPARE THE SCHEMES ITC GIVE LESS SCHEME TO THE SHOPKEEPER BUT CONSUMER SCHEMES ARE MOSTLY WITH PRODUCT FOR EXAMPLE CONDITIONER FREE WITH SHAMPOO BOTTLE OF VIVEL AND FIAMA DI WILLS.
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HUL GIVE MORE SCHEMES TO THE SHOPKEEPER FOR SELLING GOODS TRADE ACTIVATION SCHEMES, TRADE SCHEME AND ALSO GIVE THE CONSUMER SCHEMES. IN COMPARISON OF ITC, HUL GIVE MORE CONSUMER SCHEMES AND SHOPKEEPER SCHEME SCRATCH COUPON CLD. HUL SCHEMES (CHANNEL WAISE SCHEMES) VIJETA: IN THIS SCHEME HUL GIVES POWER POINT TO THE SHOPKEEPER FOR SELLING. 1POINT =1 RS 1 POINT GIVEN TO THE SHOPKEEPER WHEN, THEN SALE THE GOODS UP TO 250 RS. WE CAN SAY THAT SELLING OF 250 RS GOODS=1 POINT SUPER VALUE SHOP: 5% ON TOTAL SALE SMART: WINDOW DISPLAY
CALCULATION OF PRICE TO RETALIER (PTR)
PTR =
MAXIMUM
RETAIL PRICE ( MRP) 100 + % MARGIN
(KEY WORDS (MARK UP & MARK DOWN)
ITC V/S HUL
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BASIS BILL PRODUCTIVITY UBO AVERAGE LINE (PCP) TDP BASIC CONCEPTS WHAT IS MERCHANDISING?
ITC 55% 90% 4.6 30/4 7DAYS
HUL 65% 90% 12 30/3 10DAYS
TO ENSURE SALES, COMPANIES GO TO GREAT LENGTHS TO MAKE SURE THAT THEIR PRODUCTS ARE VISIBLE IN STORES AND ARE PRESENTED IN AN APPEALING, 'SELLABLE' WAY. THIS IS CALLED MERCHANDISING, WHICH INCLUDES PRODUCT PACKAGING, PLACEMENT, PROMOTIONS AND PRICING TO APPEAL TO THE TARGET MARKET. WHAT IS CASH DISCOUNT? A REDUCTION IN THE PRICE OF AN ITEM FOR SALE ALLOWED IF PAYMENT IS MADE WITHIN A STIPULATED PERIOD.
POINT
OF
SALE (POS)
OR CHECKOUT IS
THE
LOCATION
WHERE
A TRANSACTION OCCURS. A "CHECKOUT" REFERS TO A POS TERMINAL OR MORE GENERALLY TO THE HARDWARE AND SOFTWARE USED FOR CHECKOUTS, THE EQUIVALENT OF AN ELECTRONIC CASH REGISTER. POINT OF DISPLAY A POINT-OF-SALE DISPLAY (POS) IS A SPECIALIZED FORM OF SALES
PROMOTION THAT IS FOUND NEAR, ON, OR NEXT TO A CHECKOUT COUNTER (THE "POINT OF SALE"). THEY ARE INTENDED TO DRAW THE CUSTOMERS' ATTENTION TO PRODUCTS, WHICH MAY BE NEW PRODUCTS, OR ON SPECIAL OFFER, AND ARE ALSO USED TO PROMOTE SPECIAL EVENTS, E.G. SEASONAL OR HOLIDAY-TIME SALES. POS DISPLAYS CAN INCLUDE SHELF EDGING, DUMMY PACKS, DISPLAY PACKS, DISPLAY STANDS ,MOBILES, POSTERS, AND BANNERS. WHAT IS PRIMARY AND SECONDARY SALE?
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PRIMARY SALES MEANS WHEN THE ORGANISATION SELLS OR MAKE FLOW OF PRODUCT OR SERVICES TO THE CHANNEL PARTNERS. EX: IN FMCG: C&F AGENTS, DISTRIBUTORS, AND DEALERS EX: IN FINANCIAL SERVICE: BUSINESS PARTNERS, FRANCHISEES, SECONDARY SALES MEANS WHEN THE ORGANISATION SELLS OR MAKE FLOW OF PRODUCT OR SERVICES TO END USERS. EX: IN FMCG: RETAILERS, TRADE FAIRS, AND PROMOTIONAL SALES EX: FINANCIAL SERVICES: SALES DIRECTLY BY COMPANY EMPLOYEES
WHAT IS THE DISTRIBUTION INFRASTRUCTURE? MAN POWER, SALESMAN, RELATION IN THE MARKET, MARKET KNOWLEDGE ETC.. WHAT IS THE SALES TOOL? SCHEMES AND OFFER ARE SALES TOOLS.
UNIQUE SELLING PROPOSITION REAL OR PERCEIVED BENEFIT OF A GOOD OR A SERVICE THAT DIFFERENTIATES IT FROM THE COMPETING BRAND AND GIVES ITS BUYER A LOGICAL REASON TO PREFER IT OVER OTHER BRANDS.
MEASUREMENT OF THE PRODUCT SHAMPOO IN LITRE SOAP IN KILO GRAM
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FOODS IN GRAMS CIGARETTE AND AGARBATTI IN (MS 1M=1000 STICKS) MARGIN TO RETAILER PRODUCT WISE IN A SHAMPOO BOTTLE (10%) IN A SHAMPOO SACHET (22%TO 23%) IN A SHOP (8%) IN A AGARBATTI (22%) IN A MATCHES BOX (NOT FIXED) BASIC TERMS UBO: UNIQUE BILL OUT LET ABV: AVERAGE BILL VALUE CFC: COLLARET FIBER CONTAINER ABL: ABOVE THE LINE BBL: BELOW THE LINE TDP: TEMPORARY DISPATCH TIME E-CHOUPAL V/S PROJECT SHAKTI FMCG COMPANIES ARE NOW TARGETING THE RURAL MARKETS. IN SPITE OF THE INCOME IMBALANCE BETWEEN URBAN AND RURAL INDIA, RURAL HOLDS GREAT POTENTIAL SINCE 70% OF INDIAS POPULATION LIVES THERE. DUE TO THE RECENT GOVERNMENT MEASURES LIKE WAIVER OF LOANS, NATIONAL RURAL EMPLOYMENT GUARANTEE SCHEME AND INCREASING MINIMUM SUPPORT PRICE, DISPOSABLE INCOME IN RURAL INDIA HAS BEEN RAPIDLY INCREASING. HOWEVER, RURAL MARKETS PRESENT THEIR OWN SETS OF PROBLEMS. THESE
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INCLUDE
POOR
INFRASTRUCTURE,
DISPERSED
SETTLEMENTS,
LACK
OF
EDUCATION AND A VIRTUALLY NONEXISTENT MEDIUM FOR COMMUNICATION. FURTHERMORE, RETAILERS CANNOT BE PRESENT IN ALL THE CENTERS AS MANY OF THEM ARE SO SMALL THAT IT MAKES THEM ECONOMICALLY UNFEASIBLE. HINDUSTAN UNILEVER LIMITED (HUL) TO TAP THIS MARKET CONCEIVED OF PROJECT SHAKTI. THIS PROJECT WAS STARTED IN 2001 WITH THE AIM OF INCREASING THE COMPANYS RURAL DISTRIBUTION REACH AS WELL AS PROVIDING RURAL WOMEN WITH INCOME-GENERATING OPPORTUNITIES. THIS IS A CASE WHERE THE SOCIAL GOALS ARE HELPING ACHIEVE BUSINESS GOALS. THE RECRUITMENT OF A SHAKTI ENTREPRENEUR OR SHAKTI AMMA (SA) BEGINS WITH THE EXECUTIVES OF HUL IDENTIFYING THE UNCOVERED VILLAGE. THE REPRESENTATIVE OF THE COMPANY MEETS THE PANCHAYAT AND THE VILLAGE HEAD AND IDENTIFY THE WOMAN WHO THEY BELIEVE WILL BE SUITABLE AS A SA. AFTER TRAINING SHE IS ASKED TO PUT UP RS 20,000 AS INVESTMENT WHICH IS USED TO BUY PRODUCTS FOR SELLING. THE PRODUCTS ARE THEN SOLD DOOR-TODOOR OR THROUGH PETTY SHOPS AT HOME. ON AN AVERAGE A SHAKTI AMMA MAKES A 10% MARGIN ON THE PRODUCTS SHE SELLS. AN INITIATIVE WHICH HELPS SUPPORT PROJECT SHAKTI IS THE SHAKTI VANI PROGRAM. UNDER THIS PROGRAM, TRAINED COMMUNICATORS VISIT SCHOOLS AND VILLAGE CONGREGATIONS TO DRIVE MESSAGES ON SANITATION, GOOD HYGIENE PRACTICES AND WOMEN EMPOWERMENT. THIS SERVES AS A RURAL COMMUNICATION VEHICLE AND HELPS THE SA IN THEIR SALES. THE MAIN ADVANTAGE OF THE SHAKTI PROGRAM FOR HUL IS HAVING MORE FEET ON THE GROUND. SHAKTI AMMAS ARE ABLE TO REACH FAR FLUNG AREAS, WHICH WERE ECONOMICALLY UNVIABLE FOR THE COMPANY TO TAP ON ITS OWN, BESIDES BEING A BRAND AMBASSADOR FOR THE COMPANY. MOREOVER, THE COMPANY HAS READY CONSUMERS IN THE SAS WHO BECOME USERS OF THE PRODUCTS BESIDES SELLING THEM.
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ALTHOUGH THE COMPANY HAS BEEN SUCCESSFUL IN THE INITIATIVE AND HAS BEEN SCALING UP, IT FACES PROBLEMS FROM TIME TO TIME FOR WHICH IT COMES UP WITH INNOVATIVE SOLUTIONS. FOR EXAMPLE, A PROBLEM FACED BY HUL WAS THAT THE SAS WERE MORE INCLINED TO STAY AT HOME AND SELL RATHER THAN GOING FROM DOOR TO DOOR SINCE THERE IS A STIGMA ATTACHED TO DIRECT SELLING. MOREOVER, MEN WERE NOT LIABLE TO GO TO A WOMANS HOUSE AND BUY PRODUCTS. THE COMPANY COUNTERED THIS PROBLEM BY HOSTING SHAKTI DAYS. HERE AN ARTIFICIAL MARKET PLACE WAS CREATED WITH MUSIC AND PROMOTION AND THE LADIES WERE ABLE TO SELL THEIR PRODUCTS IN A FEW HOURS WITHOUT ENCOUNTERING ANY STIGMA OR BIAS. THIS MODEL HAS BEEN THE GROWTH DRIVER FOR HUL AND PRESENTLY ABOUT HALF OF HULS FMCG SALES COME FROM RURAL MARKETS. THE SHAKTI NETWORK AT THE END OF 2008 WAS 45,000 AMMAS COVERING 100,000+ VILLAGES ACROSS 15 STATES REACHING 3 M HOMES. THE LONG TERM AIM OF THE COMPANY IS TO HAVE 100,000 AMMAS COVERING 500,000 VILLAGES AND REACHING 600 M PEOPLE. WE FEEL THAT WITH THIS INITIATIVE, HUL HAS BEEN SUCCESSFUL IN MAINTAINING ITS DISTRIBUTION REACH ADVANTAGE OVER ITS COMPETITORS. THIS PROGRAM WILL HELP PROVIDE HUL WITH A GROWING CUSTOMER BASE WHICH WILL BENEFIT THE COMPANY FOR YEARS TO COME. E-CHOUPAL IS AN INITIATIVE OF ITC LIMITED, A LARGE MULTI BUSINESS CONGLOMERATE IN INDIA, TO LINK DIRECTLY WITH RURAL FARMERS VIA THE INTERNET FOR PROCUREMENT OF AGRICULTURAL AND AQUACULTURE E-CHOUPAL WAS PRODUCTS LIKE SOYBEANS, WHEAT, COFFEE, AND PRAWNS.
CONCEIVED TO TACKLE THE CHALLENGES POSED BY THE UNIQUE FEATURES OF INDIAN AGRICULTURE, CHARACTERIZED BY FRAGMENTED FARMS, WEAK INFRASTRUCTURE AND THE INVOLVEMENT OF NUMEROUS INTERMEDIARIES. THE PROGRAM INVOLVES THE INSTALLATION OF COMPUTERS WITH INTERNET ACCESS IN RURAL AREAS OF INDIA TO OFFER FARMERS UP-TO-DATE MARKETING AND AGRICULTURAL INFORMATION.
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EFFECTS OF E-CHOUPAL ITC LIMITED HAS NOW PROVIDED COMPUTERS AND INTERNET ACCESS IN RURAL AREAS ACROSS SEVERAL AGRICULTURAL REGIONS OF THE COUNTRY, WHERE THE FARMERS CAN DIRECTLY NEGOTIATE THE SALE OF THEIR PRODUCE WITH ITC LIMITED. THIS ONLINE ACCESS ENABLES FARMERS TO OBTAIN INFORMATION ON MANDI PRICES, AND GOOD FARMING PRACTICES, AND TO PLACE ORDERS FOR AGRICULTURAL INPUTS LIKE SEEDS AND FERTILIZERS. THIS HELPS FARMERS IMPROVE THE QUALITY OF THEIR PRODUCTS, AND HELPS IN OBTAINING A BETTER PRICE. EACH ITC LIMITED KIOSK HAVING INTERNET ACCESS IS RUN BY A SANCHALAK A TRAINED FARMER. THE COMPUTER IS HOUSED IN THE SANCHALAK'S HOUSE AND IS LINKED TO THE INTERNET VIA PHONE LINES OR BY A VSAT CONNECTION. EACH INSTALLATION SERVES AN AVERAGE OF 600 FARMERS IN THE SURROUNDING TEN VILLAGES WITHIN ABOUT A 5 KM RADIUS. THE SANCHALAK BEARS SOME OPERATING COST BUT IN RETURN EARNS A SERVICE FEE FOR THE E-TRANSACTIONS DONE THROUGH HIS E-CHOUPAL. THE WAREHOUSE HUB IS MANAGED BY THE SAME TRADITIONAL MIDDLE-MEN, NOW CALLED SAMYOJAKS, BUT WITH NO EXPLOITATIVE POWER DUE TO THE REORGANIZATION. IN DEED THESE MIDDLEMEN MAKE UP FOR THE LACK OF INFRASTRUCTURE AND FULFILL CRITICAL JOBS LIKE CASH DISBURSEMENT, QUANTITY AGGREGATION AND TRANSPORTATION. SINCE THE INTRODUCTION OF E-CHOUPAL SERVICES, FARMERS HAVE SEEN A RISE IN THEIR INCOME LEVELS BECAUSE OF A RISE IN YIELDS, IMPROVEMENT IN QUALITY OF OUTPUT, AND A FALL IN TRANSACTION COSTS. EVEN SMALL FARMERS HAVE GAINED FROM THE INITIATIVE. CUSTOMIZED AND RELEVANT KNOWLEDGE IS OFFERED TO THE FARMERS DESPITE HETEROGENEOUS CULTURES, CLIMATES AND SCALES OF PRODUCTION. FARMERS CAN GET REAL-TIME INFORMATION DESPITE THEIR PHYSICAL DISTANCE FROM THE MANDIS. THE SYSTEM SAVES PROCUREMENT COSTS FOR ITC LIMITED. THE FARMERS DO NOT
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PAY FOR THE INFORMATION AND KNOWLEDGE THEY GET FROM E-CHOUPALS; THE PRINCIPLE IS TO INFORM, EMPOWER AND COMPETE. AT THE SAME TIME ITC LIMITED HAS OBTAINED BENEFITS FROM THE PROGRAMME: ELIMINATION OF NON VALUE ADDED ACTIVITIES, DIFFERENTIATED PRODUCT THROUGH IDENTITY PRESERVED SUPPLY CHAINS, VALUE ADDED PRODUCTS TRACEABLE TO FARM PRACTICES, E-MARKET PLACE FOR SPOT TRANSACTIONS AND SUPPORT SERVICES TO FUTURES EXCHANGE. THERE ARE PRESENTLY 6,500 E-CHOUPALS IN OPERATION. ITC LIMITED PLANS TO SCALE UP TO 20,000 E-CHOUPALS BY 2012 COVERING 100,000 VILLAGES IN 15 STATES, SERVICING 15 MILLION FARMERS.
BCG MATRIX OF ITC

STARS COWS FMCG-CIGARETTES HOTELS PAPERBOARDS/PACKAGING. AGRI BUSINESS. DOGS MAYBE ITC INFOTECH. ? FMCGOTHERS
BCG MATRIX OF HUL
Star
Hair care, skin care Premium soap, laundry Deodorant
?
Processed food Colour Cosmetics
Cow
Mass soap Beverages Oral care Laundry
Dog
Sea food Export 57
PERSONAL CARE STAKE BASIS VALUE IN RS. VALUE GROWTH % VOLUME IN LTR./KG VOLUME GROWTH SHAMPOO 2,605 CR. 18% 10,85,49,607 14% CONDITIONER 84 CR. 25% 14,35,873 29% SOAP 7,967 CR. 18% 5,68,812,568 4%
THE SIX STRATEGY OF ITC FOR PERSONAL CARE PRODUCTS

SEGMENTATION
CREATING BRANDS FROM SCRATCH WITH NO HISTORY AND LINEAGE, ITC USED CLEAR SEGMENTATION ACROSS ITS FIVE PRODUCT LINES AND THE TARGET AUDIENCE.
GROUP SYNERGY
ONCE THE FIVE PRODUCTS WERE CREATED AND COMMUNICATION STRATEGIES SET, ITC LEVERAGED ITS PROPERTIES LIKE HOTELS, FOODS AND APPAREL STORE NETWORK TO RETAIL THESE BRANDS.
COMMUNICATION STRATEGY
LIKE HUL, THESE BRANDS SPORT WESTERN NAMES, AND DIFFERENT COMMUNICATION. ESSENZA & FIAMA, MEANT FOR THE ELITE, HAVE ENGLISH COMMUNICATION, WHILE VIVEL & SUPERIA USE HINDI.
BRAND EXTENSIONS
SELECTIVE EXTENSIONS AS IT DOESNT WANT TO CONFUSE CONSUMERS WITH TOO MANY IRRELEVANT BRAND EXTENSION & SUB-BRANDS. THE ESSENZA RANGE IS THE ONLY EXCEPTION
.
BRAND AMBASSADORS
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IILM Graduate School of Management ITC USES BRAND AMBASSADORS STRATEGICALLY. WHILE FOR THE FIAMA AND VIVEL RANGES IT HAS ROPED IN BRAND AMBASSADORS, FOR THE SUPERIA & ESSENZA RANGES THE KEY TG IS THE REAL KING.
.
PACKAGING
SINCE PACKAGING PLAYS A KEY ROLE IN PRODUCT DIFFERENTIATION, ITC USES IT TO THE HILT. IT HAS TAKEN FOREIGN EXPERTS HELP TO MAKE ITS PRODUCTS STAND OUT FROM COMPETITION.
ESSENZA DI WILLS (SUPER PREMIUM PRODUCT) ESSENZA, AS THE WESTERN NAME SUGGESTS, TARGETSTHE LUXURY SEEKING ELITE. ALSO BEING DISTRIBUTED THROUGH ITC HOTELS AND WILLS LIFESTYLE STORES. INSTEAD OF BRAND EXTENSIONS, IT HAS SUB-BRANDS LIKE INIZIO, AQUA AND MIKKLE. NO BRAND AMBASSADORS; THE TG DO THE ROLE AS THEY ARE VERY INDIVIDUALISTIC AND ARE SUPER ACHIEVERS. MANUFACTURED IN FRANCE, THE PACKAGING ESSENZA HAS AN INTERNATIONAL APPEAL. GENDER-NEUTRAL, MOSTLY IN ENGLISH, AND A BIT OF FRENCH THE LANGUAGE OF THE SUPER ELITE.
SEGMENTATION
GROUP SYNERGY
BRAND EXTENSION
BRAND AMBASSADORS
PACKAGING
COMMUNICATION STRATEGY
VIVEL
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IILM Graduate School of Management CLEVER TARGETING:VIVEL DI WILLS FORTHE UPPER-MIDDLECLASS AND VIVEL FOR THE POPULAR MID-SEGMENT. RETAILED AT JOHN PLAYERS STORES, BESIDES ITCS TRADITIONAL DISTRIBUTION CHANNELS. VIVEL & VIVEL DIWILLS A CLEVER WAY TO TARGET THE LUX CONSUMERS. KAREENA KAPOOR IS THE BRAND FACE THANKS TO HER POPULAR MASS AND CLASS APPEAL. VIVEL DI WILLS HAS MORE PREMIUM PACKAGING, BUT VIVEL HAS A DIFFERENT PACKAGING. COMMUNICATION IN HINDI & ENGLISH TO CATER TO BOTH UPPER-MIDDLE & POPULAR MID-SEGMENT.
SEGMENTATION
GROUP SYNERGY
BRAND EXTENSION
BRAND AMBASSADOR PACKAGING
COMMUNICATION
FIAMA DI WILLS TARGETED AT THE YOUNG, URBAN, ASPIRATION WOMEN. ITS CORE TG IS THE UPPER AND MID-SEGMENT URBAN CONSUMERS. BESIDES, BEING RETAILED AT DEPARTMENTAL STORES,IT IS ALSO PRESENT AT WILLS LIFESTYLE STORES, & ITC HOTELS. MOSTLY IN THE LANGUAGE OF THE YOUNG URBAN WOMAN PROFESSIONALS ENGLISH. ITS ASPIRATION IN NATURE. IT HAS BEEN CLEVERLY LEVERAGED IN THE SHAMPOOS, SHOWER GELS, SOAP SEGMENTATION
GROUP SYNERGY
COMMUNICATION
BRAND EXTENSION
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IILM Graduate School of Management AND CONDITIONER CATEGORIES. SOPHISTICATED, YOUNG, HAVING ARRIVED & BEAUTIFUL DEEPIKA PADUKONE IS USED TO FURTHER THE BRAND RECALL. PREMIUM PACKAGING TO COMPETE WITH THE LIKES OF DOVE. DESIGNED WITH HELP FROM AMERICAN PACKAGING EXPERTS.
BRAND AMBASSADORS
PACKAGING
SUPERIA SUPERIA IS THE MASS BRAND FROM THE ITC STABLE, CATERING TO LOWER INCOME AND RURAL SEGMENTS LIKE A LIFEBUOY DOES. RETAILED THROUGH ITCS DISTRIBUTION CHANNELS ACROSS THE HINTERLANDS ESPECIALLY THE E CHOUPAL FOR RURAL REACH. BEING A MASS BRAND, IT CATERS TO SEGMENTS WHERE ASPIRATIONS ARE LOW, AND COMMUNICATION FAMILY IS VERY CLOSE-NIT. THE BRAND HAS A FAMILY-ORIENTED STRATEGY TOO. SUPERIA HAS FOUR SOAP VARIANTS AND THREE SHAMPOO VARIANTS WHICH TAKE ON THE LIKES OF CLINIC ALL CLEAR, LIFEBUOY, BREEZE, GODREJ NO1 ETC. NO POPULAR BRAND AMBASSADOR; THE FOCUS IS ON THE TARGET AUDIENCE, WHICH IS THE LOW-INCOME FAMILIES. THE ONLY BRAND WHICH IS AVAILABLE IN SACHETS, SUPERIA HAS COLORFUL PACKAGING, WHICH IS COMMON AMONG MASS BRANDS. SEGMENTATION GROUP SYNERGY
COMMUNICATION
BRAND EXTENSION
BRAND AMBASSADOR
PACKAGING
ANALYSIS ITC V/S HUL
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HUL (HINDUSTAN UNILEVER LTD.) THIS COMPANY IS EARLIER KNOWN AS HINDUSTAN LEVER LTD. THIS IS INDIA'S LARGEST FMCG SECTOR COMPANY WITH ALL TYPE OF HOUSEHOLD PRODUCTS AVAILABLE WITH IT. IT HAS HOME & PERSONAL CARE PRODUCTS, AND ALSO FOOD AND WATER PURIFIER AVAILABLE WITH IT. ACCORDING TO BRAND EQUITY, HUL HAS LARGEST NO OF BRANDS IN MOST TRUSTED BRANDS LIST. 16 OF HUL'S BRANDS FEATURED IN AC-NIELSON BRAND EQUITY LIST OF 100 MOST TRUSTED BRANDS IN 2008 IN AN ANNUAL SURVEY. FOR THE ENTIRE YEAR ENDING MARCH - 2009 NET TURNOVER OF COMPANY IS RS. 20'239.33 CRORE WHICH IS 47.99% HIGHER THAN 31ST DECEMBER 2007'S RS. 13675.43 CRORE DRIVEN MAINLY BY DOMESTIC FMCG'S WITH NET PROFIT STOOD AT RS. 2496.45 CRORE.
ITC LIMITED
THIS COMPANY WAS EARLIER KNOWN AS IMPERIAL TOBACCO COMPANY OF INDIA LTD. IT IS CURRENTLY HEADED BY YOGESH CHANDER DEVESHWAR. COMPANY MAINLY OPERATES IN THE INDUSTRY LIKE TOBACCO, FOODS, HOTELS, STATIONARY AND GREETING CARDS WITH THE MAJOR PRODUCTS CONSTITUTES CIGARETTES, PACKED FOODS, HOTELS, AND APPARELS. FOR THE ENTIRE YEAR ENDING MAR-2009 THE TURNOVER OF COMPANY IS AT RS. 15388 CRORE WHICH IS 10.3% HIGHER THAN PREVIOUS YEAR'S RS. 13947.53 CRORE, DRIVEN MAINLY BY ROBUST 20% GROWTH IN NON CIGARETTE FMCG BUSINESS WITH NET PROFIT STOOD AT RS. 3324 CRORE.
ANALYSIS OF BOTH COMPANIES
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HUL & ITC ARE MAJOR COMPANIES IN FMCG MARKET IN INDIA. WHEN WE COMPARE BOTH COMPANIES ON THE BASIS OF THEIR STRATEGIES I.E. THEIR COMPETITIVE STRATEGIES IN THE PRESENT MARKET. WHEN WE LOOK AT THE PRESENT SEGMENT BREAKUP FOR BOTH OF THE COMPANIES THEN WE CAME TO KNOW THAT THEIR DIFFERENT PRODUCTS VARY TOO MUCH IN THE MARKET. NOW LET US TAKE A COMPARATIVE ANALYSIS OF BOTH THE COMPANIES UNDER SOME HEADS: HINDUSTAN UNILEVER (HUL) IS THE LARGEST PURE-PLAY FMCG COMPANY IN THE COUNTRY AND HAS ONE OF THE WIDEST PORTFOLIO OF PRODUCTS SOLD VIA A STRONG DISTRIBUTION CHANNEL. IT OWNS AND MARKETS SOME OF THE MOST POPULAR BRANDS IN THE COUNTRY ACROSS VARIOUS CATEGORIES, INCLUDING SOAPS, DETERGENTS, SHAMPOOS, TEA AND FACE CREAMS. ITC IS NOT A PUREPLAY FMCG COMPANY, SINCE CIGARETTES IS ITS PRIMARY BUSINESS. IT IS DIVERSIFYING INTO NON-TOBACCO. FMCG SEGMENTS LIKE FOODS, PERSONAL CARE, PAPER PRODUCTS, HOTELS AND AGRI-BUSINESS TO REDUCE ITS EXPOSURE TO CIGARETTES. PERFORMANCE AFTER STAGNATING BETWEEN 1999 AND '04, THE COMPANY IS BACK ON THE GROWTH TRACK. IN THE PAST THREE YEARS, TILL 2008 HUL'S NET SALES HAVE WITNESSED A CAGR OF 11%, WHILE NET PROFIT HAS POSTED A CAGR OF 17%. DESPITE DIVERSIFICATION, ITC'S RELIANCE ON CIGARETTES IS STILL HUGE. THE TOBACCO BUSINESS CONTRIBUTES 40% TO ITS REVENUES, AND ACCOUNTS FOR OVER 80% OF ITS PROFIT. THIS CASH-GENERATING BUSINESS HAS ENABLED IT TO TAKE AMBITIOUS, BUT EXPENSIVE BETS IN NEW SEGMENTS AND DELIVER MODEST PROFIT GROWTH. OVERALL STRATEGY
57
HUL ALWAYS BELIEVES IN CUSTOMER FRIENDLY PRODUCTS WITH MAJOR EMPHASIS ON LOW COST OVERALL WITHOUT COMPROMISING ON THE QUALITY OF THE PRODUCT. THEY ARE LEVERAGING THE CAPABILITIES AND SCALE OF THE PARENT COMPANY AND FOCUSING ON THE VALUE OF EXECUTION. THE ENTIRE PRODUCT PORTFOLIO IS ALSO BEING TWEAKED TO INCLUDE PREMIUM OFFERINGS SUCH AS POND'S AGE MIRACLE AND DOVE SHAMPOO IN SKIN AND HAIR CARE. ITC IS FOCUSING ON DELIVERING VALUE AT COMPETITIVE PRICES. ITS TREMENDOUS REACH THROUGH EXTENSIVE DISTRIBUTION CHAIN HAS BEEN A COMPETITIVE ADVANTAGE. ADDITIONALLY, THE COMPANY'S E-CHOUPAL MODEL FOR DIRECT PROCUREMENT IS WELL KNOWN UNDER WHICH ITC PARTNERS WITH OVER 100,000 FARMERS FOR SPICES AND WHEAT PROCUREMENT AND AN EVEN LARGER NUMBER FOR OILSEEDS. THIS KIND OF RURAL PEDIGREE IS HARD TO BEAT. GROWTH DRIVERS THE COMPANY HAS BEEN LAUNCHING NEW PRODUCTS AND BRAND EXTENSIONS, WITH INVESTMENTS BEING MADE TOWARDS BRAND-BUILDING AND INCREASING ITS MARKET SHARE. HUL IS ALSO STREAMLINING ITS VARIOUS BUSINESS OPERATIONS, IN LINE WITH THE ONE UNILEVER' PHILOSOPHY ADOPTED BY THE UNILEVER GROUP WORLDWIDE. INTRODUCTION OF PREMIUM PRODUCTS AND ADDITION OF NEW CONSUMERS VIA MARKET EXPANSION WILL BE HUL'S GROWTH DRIVERS. ITC'S BACKWARD INTEGRATION TO ENSURE THAT ITS PRODUCTS PASS EFFICIENTLY FROM THE FARMS TO CONSUMERS HAS HELPED IT TO CUT DOWN SUPPLY AND PROCUREMENT COSTS. ITC'S NON-CIGARETTE FMCG BUSINESS LEVERAGES THE LARGE DISTRIBUTION NETWORK THE COMPANY HAS DEVELOPED BY SELLING CIGARETTES OVER THE YEARS. A RICH PRODUCT MIX,
57
ALONG WITH RAMP-UP OF INVESTMENTS IN ITS NEW SECTORS, WILL BE INSTRUMENTAL IN CHARTING ITC'S GROWTH PATH. RISK FOR BOTH THE COMPANIES HUL BEING AN MNC OPERATING IN INDIA, HUL IS MORE CONSERVATIVE IN ITS STRATEGIES THAN ITS INDIAN COUNTERPARTS. MOREOVER, GIVEN INCREASING COMPETITION, IT FACES THE RISK OF BEING OVERTAKEN BY DOMESTIC PLAYERS IN VARIOUS CATEGORIES. PROLONGED INFLATION MAY LEAD TO MARGIN CONTRACTION, IN CASE HUL IS NOT ABLE TO PASS ON THIS BURDEN TO CONSUMERS. THE COMPANY'S LARGE SIZE ALSO POSES A PROBLEM, SINCE IT DOES NOT GIVE HUL THE AGILITY TO ADDRESS THE COMPETITION IT FACES FROM NATIONAL AND REGIONAL PLAYERS. ITC INCREASED REGULATORY CLAMPS ON TOBACCO, ALONG WITH RISING TAX BURDEN, POSE A BUSINESS RISK FOR ITC. SO, IT HAS STARTED AN AMBITIOUS DIVERSIFICATION PLAN, WHICH HAS ITS OWN SET OF RISKS. WITH ITS FORAY INTO THE CONVENTIONAL FMCG SPACE, ITC HAS ENTERED THE HIGH-CLUTTER BRANDED PRODUCTS MARKET. THIS WILL BURDEN ITS RESOURCES IN TERMS OF AD SPEND AND BRAND-BUILDING. CREATING BRAND RECALL AND BUILDING MARKET SHARE IN NEW PRODUCTS ARE ITC'S KEY CHALLENGES. EXPORT BAN AND RISING CROP PRICES POSE A THREAT FOR ITS AGRI-BUSINESS, TAXING ITS MARGINS.
57
COMPETITIVE STRATEGY CONSISTS OF MOVE OF COMPANIES IN ORDER TO ATTRACT CUSTOMERS. WITH STAND COMPETITIVE PRESSURES AND STRENGTHEN AN ORGANIZATION'S MARKET POSITION. THE MAIN OBJECTIVE OF COMPETITIVE STRATEGY IS TO GENERATE A COMPETITIVE ADVANTAGE, INCREASE THE LOYALTY OF CUSTOMERS AND TO BEAT COMPETITORS. FIVE MAIN COMPETITIVE STRATEGIES ARE: 1. OVERALL LOW COST LEADERSHIP STRATEGY 2. BEST COST PROVIDER'S STRATEGY 3. BROAD DIFFERENTIATION STRATEGY 4. FOCUSED LOW COST STRATEGY 5. FOCUSED DIFFERENTIATION STRATEGY
SALES REPORT OF ITC PERSONAL CARE PRODUCT V/S HUL IN AMBALA CITY
IN AMBALA CITY HUL IS THE MARKET LEADER. POPULATION OF BHOPAL CITY IS 17 LAKH AND BHOPAL MARKET IS VAST HUL IN THE BHOPAL MARKET LAST 100 YEARS AND ITC LAUNCH HIS PERSONAL CARE PRODUCT IN FEBRUARY, 2008. HUL HAVE A HUGE MARKET IN THE BHOPAL HUL CAPTURE THE MARKET BUT ITC START BREAKING THE MARKET ITC ENTER IN THE BHOPAL CITY WITH 2 POPULAR AND 1 PREMIUM BRANDS(FIAMA DI WILLS, VIVEL, VIVEL DI WILLS, SUPERIA) SOAPS AND SHAMPOOS OF ALL BRANDS IN DIFFERENT SKUS. IN THE DURATION OF MY PROJECT I AM ANALYZING THE SALE OF ITCS SOAPS AND SHAMPOOS IN BHOPAL CITY WITH HULS THOSE BRANDS WHICH ARE COMPETING OUR PRODUCTS SHAMPOOS FIAMA DI WILLS WITH DOVE AND SUNSILK
57
VIVEL WITH CLINIC ALL CLEAR SUPERIA WITH CLINIC PLUS SOAPS FIAMA DI WILLS WITH DOVE VIVEL WITH LUX VIVEL DI WILLS WITH LUX INTERNATIONAL SUPERIA WITH BREEZE SHAMPOOS ITC V/S HUL IN BHOPAL CITY IN DEC 2011 NAME FIAMA DI WILLS VIVEL SUPERIA LTRS 236 246 1736 NAME DOVE SUNSILK CLINIC ALL CLEAR CLINIC PLUS LTRS 805 605 705 68167
SALES OF SHAMPOOS IN LITERS
57
SOAPS ITC V/S HUL IN AMBALA CITY DEC 2011
NAME FIAMA DI WILLS VIVEL DI WILLS VIVEL SUPERIA
KG 88 182 4582 15282
NAME DOVE LUX INTERNATIONAL LUX BREEZE
KG 1512 1918 12,000 32,400
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FINDINGS
IN THE DURATION OF MY PROJECT I AM DAILY VISITED MARKET WITH SALES MAN INDENTIFYING THE SCHEMES OF HUL AND ITC. ITC GIVE FEWER SCHEMES TO RETAILER BUT THEY ARE DAY BY DAY INCREASE SALE OF ITC. ITC IS WORK IN THE MARKET WITH THE QUALITATIVE STYLE. IN THE BHOPAL CITY ITC HAVE 2800 OUT LETS IN THESE OUTLETS ARE COVER BY THE SALES MAN ACCORDING TO HIS BEAT. ITC HAVE COMPARATIVELY HUL LESS DEMAND BUT PROMOTIONAL ACTIVITIES OF ITC ABOVE THE LAND AND BELOW THE LAND DAY BY DAY AWARE TO CUSTOMER ABOUT ITCS PERSONAL CARE PRODUCT. ITC HAVE NOT ANY SCHEMES LIKE HUL (VIJETA, SUPER VALUE SOAP, SMART SCHEME, BEAT THE HEAT). ITC SHOULD HAVE NOT PROVIDED THIS TYPE OF SCHEME WHICH IS HELP TO INCREASE THE SALE. ONLY CONSUMER SCHEMES ARE NOT ENOUGH. HUL ALSO GIVE SEASONAL SCHEMES TO RETAILERS. HUL MAKE SCHEME BROACHERS FOR WHOLE SELLERS AND RETAILERS AND PROVIDE HIM. HUL ORGANIZE VIJETA MEET AT THE END YEAR AND GIVE PRIZES TO WINNER AND PROVIDE CERTIFICATE FOR THEIR ACHIEVEMENT. HUL ALSO GIVE THE CERTIFICATION TO THE SHOP KEEPER EXCELLENT AWARD ON THE BASES OF SALE PERFORMANCE.
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SUGGESTION
I WANT TO SUGGEST FEW SCHEME TO THE ITC FOR MODERN TRADE, FOR WHOLESALER, FOR THE RETAILER. THIS CAN BE HELPFUL TO INCREASING THE SALE OF ITC. FOR MODERN TRADE SCHEME IS ITC ZONE. WHY THIS SCHEME? IN THE MARKET MOST OF THE CUSTOMERS ARE NOT AWARE ABOUT TO ITCS& ITCS ENTIRE PERSONAL CARE PRODUCT AND VISIBILITY PROBLEM AND ALSO CUSTOMER AWARE ABOUT THE CONSUMER SCHEME. ITC ZONE SCHEME ALL MTS ARE INCLUDED UNDER THE SCHEME SELECT A VISIBLE PLACE IN THE SHOP AND PUT ALL ITCS PERSONAL CARE PRODUCT AND GIVE THE SHOP KEEPER TO QUARTERLY SALE TARGET AND GIVE HIM TO INCENTIVES OR PRIZES OR CASH PRIZE. FOR WHOLESALER SCHEME IS ROCKET SINGH WHY THIS SCHEME? WHOLESALERS ARE TOTALLY INTERESTED IN THE MARGIN OR FULL DEMANDED PRODUCTS IN MARKET RIGHT NOW ITCS PERSONAL CARE PRODUCTS ARE IN THE GROWTH STAGE IF WE ARE GIVE MARGINS TO SALE QUANTITY THEN SALE WILL BE INCREASES BY WHOLESALER. FOR THE RETAILER SCHEME IS ITCS PARTNERS WHY THIS SCHEME? ITCS PERSONAL CARE PRODUCTS ARE IN GOOD QUALITY BUT THE ITCS PERSONAL CARE PRODUCT NEED A PUSH BY THE SHOP KEEPER.
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ITCS PARTNERS IN THIS WE GIVE CERTIFICATE OF EXCELLENCE TO THE SHOPKEEPER WITH MARGIN. THIS SCHEME IS BASED ON ALSO QUANTITATIVE SALE. OR WE CAN GIVE THE MEMBERSHIP OF THE WINNER IN ITC WELL COME GROUP THIS WILL BE MORE INTERESTING FOR THE OUR CUSTOMERS.
CONCLUSION
ALL THE DISTRIBUTORS HELPS TO INCREASE THE SALE OF COMPANY. ITC REACHED TO THE CUSTOMER EXPECTATION IN REGARDING TO THE PRODUCT QUALITY, PRICE, AND TIME LINENS OF THE ORDER, SO THE CUSTOMERS OF COMPANY ARE GOING TO INCREASE, THE MARKETING AND DISTRIBUTION PEOPLE HAVE GOOD RELATION WITH CUSTOMER. IN THE FMCG PERSONAL CARE PRODUCT BUSINESSES HAVE VERY TOUGH COMPETITION MORE THAN 100 COMPANIES ARE DEALING. ITC HAVE FOLLOWED THE LEADER STRATEGY IN PERSONAL CARE BUSINESS WITHIN 3 YEARS ITC HAVE INCREASE THE SALE AND PRODUCTS DAY BY DAY IN ALL SEGMENT (POPULAR AND PREMIUM). ITC FACE VERY TOUGH COMPETITION IN PERSONAL CARE BUSINESS BECAUSE ITS COMPETITOR ARE IN MARKET FROM LAST 80 YEARS BUT GROWING GRAPH OF ITC PERSONAL CARE BUSINESS WILL MAKE LEADER TO ITC IN PERSONAL CARE PRODUCT BUSINESS.
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BIBLIOGRAPHY
MARKETING MANAGEMENT PHILIP KOTLER WWW.ITCPORTAL.COM WWW.HUL.COM WWW.ECONOMICSTIME.COM WWW.TIMESOFINNDIA.COM WWW.GOOGLE.COM WWW.WIKIPEDIA.COM
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COMPREHENSIVE PROJECT ON COMPARISON OF MARKETING AND BRANDING STRATEGIES OF ITC AND HUL LIMITED

IILM Graduate School of Management

ASHISH KUMAR FT-10-836

PROF. PITAMBER DWIVEDI

BRANDING STRATEGIES OF ITC AND HUL LIMITED in

Place : Ambala Date : Ashish Kumar

: Ashish Kumar : VPO Dhamoli, Distt Ambala

IILM Graduate School of Management

IILM Graduate School of Management

IILM Graduate School of Management

IILM Graduate School of Management

IILM Graduate School of Management

IILM Graduate School of Management

IILM Graduate School of Management

IILM Graduate School of Management

Y.C. DEVESHWAR (CHAIRMAN)

BASUDEB SENB VIJAYRAGHVAN

MISSION & VISION

ITC'S CORE VALUES

IILM Graduate School of Management

PERFORMANCE STAKEHOLDERS: TRUSTEESHIP

IILM Graduate School of Management

ITC BRANCH OPERATION STRUCTURE

IILM Graduate School of Management

Assit.Mgr cigg. +matc.

Assit. Mgr GR1+GR 3

Assit. Mgr pcp+agbt ti

Area. Mgr statnry prdt

Area Mgr Bhopal

Area Mgr Indore

Area Mgr Gwalior

Area Mgr Jabalpur

All AE visited to the all WD (in Bhopal 5 WD)

IILM Graduate School of Management

TRADE MARKETING AND DISTRIBUTOR(TM&D) AGRO - BUSINESS DIVISION (ABD)

FOOD BUSINESS DIVISION (FBD)

PAPER BOARDS AND PACKAGING DIVISION(PB&PD)

NEW BUSINESS DIVISION (NBD)

PERSONAL CARE PRODUCT DIVISION (PCPD)

AGARBATTI DIVISION (AD)

MATCHES DIVISION (MD)

IILM Graduate School of Management

IILM Graduate School of Management

IILM Graduate School of Management

IILM Graduate School of Management

ITCS BUSINESS FMCG

IILM Graduate School of Management

PERSONAL CARE EDUCATION & STATIONERY MATCHES AGARBATTIES

WELL- COME GROUP

PAPERBOARDS & PACKAGING

PRODUCT INFORMATION AND LABELLING

IILM Graduate School of Management

IILM Graduate School of Management

IILM Graduate School of Management

IILM Graduate School of Management

ITC & HUL PERSONAL CARE PRODUCT

IILM Graduate School of Management

IILM Graduate School of Management

IILM Graduate School of Management

IILM Graduate School of Management

BRAND AMBASSADOR OF ITC LTD. PERSONAL CARE:

IILM Graduate School of Management