Chapter : 1 EXECUTIVE SUMMARY

1
 1. EXECUTIVE SUMMARY

The main objective of the project is to get the full knowledge of the products of the HUL
and how they are using the distribution network as a key differentiating factor from its
competitors. This is also to find the preferences of customer and there market knowledge
and product information, information about the presence of the rivals of HUL and all the
other options they have in the market. HUL are also looking to tap the market in rural
sector, so they also taking into consideration the needs and wants of the people there.

2
3
Chapter : 2 INTRODUCTION TO HUL

4
2.0 Introduction to HUL

Hindustan Unilever Limited (HUL) formerly Hindustan Lever Limited (it was renamed

in late June 2007 as HUL) is India's largest Fast Moving Consumer Goods company,

touching the lives of two out of three Indians with over 20 distinct categories in Home &

Personal Care Products and Foods & Beverages. These products endow the company

with a scale of combined volumes of about 4 million tones and sales of nearly Rs. 13718

crores. touching the lives of two out of three Indians with over 20 distinct categories in

Home & Personal Care Products and Foods & Beverages. The company’s Turnover is

Rs. 20, 239 crores (for the 15 month period – January 1, 2008 to March 31, 2009). HUL

is also one of the country's largest exporters; it has been recognized as a Golden Super

Star Trading House by the Government of India. The mission that inspires HUL's over

15,000 employees, including over 1,300 managers, is to "add vitality to life." HUL meets

every day needs for nutrition, hygiene, and personal care with brands that help people

feel good, look good and get more out of life. It is a mission HUL shares with its parent

company, Unilever, which holds 52.10% of the equity. The rest of the shareholding is

distributed among 360,675 individual shareholders and financial institutions.

5
 HUL's brands ‐ like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's,

Sunsilk, Clinic, Pepsodent, Close‐up, Lakme, Brooke Bond, Kissan, Knorr‐Annapurna,

Kwality Wall's – are household names across the country and span many categories ‐

soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary

products. These products are manufactured over 40 factories across India. The operations

involve over 2,000 suppliers and associates. HUL's distribution network comprises about

4,000 redistribution stocks, covering 6.3 million retail outlets reaching the entire urban

population, and about 250 million rural consumers.

6
2.1 Chronology

Year Milestones

Mr. K. B. Dadiseth takes over as Chairman from Mr. S. M. Datta; Merger of

1996 Group company, Brooke Bond Lipton India Limited, with HUL, with effect from
January 1; HUL introduces branded atta; Surf Excel launched.

Unilever sets up International Research Laboratory in Bangalore; new Regional

1997
Innovation Centres also come up.

Group company, Pond's India Ltd., merges with HUL with effect from January 1,
1998 1998. HUL acquires Lakme brand, factories and Lakme Ltd.'s 50% equity in
Lakme Lever Ltd.

Mr. M. S. Banga takes over as Chairman from Mr. K. B. Dadiseth, who joins the
2000 Unilever Board; HUL acquires 74% stake in Modern Food Industries Ltd., the first
public sector company to be disinvested by the Government of India.

HUL enters Ayurvedic health & beauty centre category with the Ayush range and
2002
Ayush Therapy Centres.

2003 Launch of Hindustan Lever Network; acquisition of the Amalgam Group

2004 Launch of "Pureit" water purifiers

2006 Brookefields food operations moved to Mumbai

Company name formally changed to Hindustan Unilever Limited after receiving

2007 the approval of share holders during the 74th AGM on 18 May 2007
Sales of Brooke Bond and Surf Excel each cross the Rs 1,000 crore mark

2008 HUL completes 75 years on 17th October 2008

2.2 Vision and Mission of HUL

7
Our mission

Unilever’s misssion is to add vitality of life.They meet every day needs for
nutrition,hygene, and personal care with brands that help people feel good, look good and
get more out of life. Our mission

Enthused with Vitality

Vitality is at the heart of everything we do. It's in our brands, our people and our values.

Vitality means different things to different people. Some see it as energy, others view it
more broadly as a healthy state of body and mind – of feeling alive.

Whatever their personal definition, millions of people around the world use our products
daily to add Vitality to their lives - whether that's through feeling great because they've
got shiny hair and a brilliant smile, keeping their homes fresh and clean, or by enjoying a
great cup of tea, satisfying meal or healthy snack.

Ever since the 19th Century when William Hesketh Lever stated that the company's
mission was "to make cleanliness commonplace; to lessen work for women; to foster
health and contribute to personal attractiveness, that life may be more enjoyable and
rewarding for the people who use our products," Vitality has been at the heart of our
business.

Vitality defines what we stand for: our values, what makes us different, and how we
contribute to society. It's the common thread that links our brands and it’s central to the
unique way we operate around the world.

Health & nutrition

Our Vitality mission commits us to growing our business by addressing health and
nutrition issues. We focus on priorities including children and family nutrition,
cardiovascular health and weight management.

Inside & out

Our culture also embodies Vitality. Adding Vitality of life requires the highest standards
of behaviour towards everyone we work with, the communities we touch and the
environments on which we have an impact.

8
The growing demand for more Vitality in life provides us with a huge opportunity for
growth. The way we work and the products we develop are shaped by consumer trends,
along with the need to help raise health and hygiene standards in both the developing and
industrialised regions of the world.

Vision

The vision of Hindustan Lever is to integrate social, economical, and environmental

considerations into its business and brands. The company also aims to focus on climate
change, water, packaging and sustainable agricultural resources as our key sustainability
themes. The company also focuses on making global partnerships on nutrition and
hygiene issues.

2.3 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 shareholder’s interest.

9
This Apex body comprises of a Non- Executive Chairman, four whole time Directors and
five Independent Non – Executive Directors. The Board of the Company represents the
optimum mix of professionalism, knowledge and experience.

1. Harish Manwani - Chairman :- Mr. Harish Manwani (55), assumed charge as the
Non-Executive Chairman of the Company with effect from 1st July, 2005.

2. Nitin Paranjpe - CEO and Managing Director :- Mr. Nitin Paranjpe (46), after
obtaining a degree in BE (Mechanical) and MBA in Marketing (JBIMS) from
Mumbai, joined the Company as a management trainee in 1987. In his early years in
the Company, Mr. Paranjpe worked as Area Sales Manager – Detergents and then
Product Manager-Detergents.

3. R. Sridhar - Chief Financial Officer :- Mr. Sridhar Ramamurthy (45) is a Chartered

Accountant (Gold Medallist) as well as a Cost Accountant and Company Secretary.

4. Gopal Vittal - Executive Director, Home & Personal Care :- Mr. Gopal Vittal (42),
an alumnus of Madras Christian College, completed his MBA from IIM, Kolkata. Mr.
Vittal has 18 years experience in Marketing & Sales in FMCG market including Skin
Care, Soaps and Laundry.

10
5. Dhaval Buch - Executive Director, Supply Chain :- Mr. Dhaval Buch (48) joined
HUL as a Management Trainee in June 1984.

6. D. S. Parekh - Independent Director :- Mr. D. S. Parekh (64), is a B.Com graduate

and holds a FCA degree from England and Wales. Mr. Parekh has held senior
positions in Grindlays and Chase Manhattan.

7. C. K. Prahalad - Independent Director :- Prof. C. K. Prahalad (67), is the Paul and

Ruth McCracken distinguished University Professor of Corporate Strategy at the
University of Michigan. He received his Doctorate of Business Administration from
the Harvard Business School.

8. Narayan - Independent Director :- Mr. A. Narayan (57), joined ICI India as a

Management Trainee in 1973 and grew through diverse functions and businesses
before being appointed as the Managing Director of ICI India in 1996.

11
9. S. Ramadorai - Independent Director :- Mr. S. Ramadorai (64), is the Chief
Executive Officer and Managing Director of Tata Consultancy Services Limited;
Chairman of Tata Technologies Limited and Chairman of CMC Limited.

10. R. A. Mashelkar - Independent Director :- Dr. R. A. Mashelkar (66), is presently

the President of Global Research Alliance, a network of publicly funded R&D
institutes from Asia-Pacific Europe and USA.

Board of Directors' Share Holding

Number of Shares
Name As a % of Total Shares
Held

Harish 22,130 0.001

12
Manwani

D. S. Parekh 38,250 0.002

C. K. Prahalad nil NA

A. Narayan nil NA

S. Ramadorai nil NA

R. A.
nil NA
Mashelkar

Nitin Paranjpe 33,575 0.001

R Sridhar 1,146 0.000

Dhaval Buch 15,653 0.001

Gopal Vittal 9,405 0.000

Total (A) 120,159 0.006

13
Chapter : 3 PROFITS OF HUL

14
3. PROFITS

Hindustan Unilever Limited December Quarter Results 2009

26/01/2010 :  

· Domestic Consumer and FMCG business grows 5%

     - driven entirely by acceleration in volume growth

· Underlying Operating Margin improved by 10 bps,

     - step up in brand investments by 530 bps.

· Net Profit grows 5.4%

Mumbai, January 26th 2010: Hindustan Unilever Limited (HUL) announced its results
for December Quarter 2009. Domestic consumer and FMCG sales grew 5%, driven by
strong growth in Personal Products, Foods and Water. Underlying volume growth
accelerated to 5% in the quarter. Actions to restore competitiveness in Soaps & Mass
Laundry yielded positive results, with the Soaps & Detergents segment returning to
volume growth during the quarter.

HPC business grew 4% with volume growth in Soaps, Detergents and Personal Products
partly offset by price reductions in Laundry. Wheel delivered strong volume growth in
Laundry. In Personal wash, relaunched Lux led volume growth and the premium soaps
segment (Dove, Pears and Liril) continues to grow strongly.

Personal Products momentum was sustained with 16% growth led by strong volume
growth in Hair Care and Skin Care. In the Hair category, Dove grew rapidly across
shampoo and conditioners, becoming the No.1 Hair Care brand in Modern Trade. In Skin
Care, recently launched Pond’s White Beauty, received very good consumer response
and FAL ‘winter fairness’ variant performed well; Pond’s Talc and Vaseline grew
strongly in the Hand & Body segment. In Oral, both Close Up and Pepsodent delivered
volume growth aided by launch of Close Up “Peppermint Splash” and a new
“Germicheck” advertising campaign on Pepsodent.

Foods business grew at 9% driven by all three segments – Beverages, Processed Foods
and Ice Cream. Beverages was up 8% with all brands growing well. Coffee growth was
largely driven by small packs. In Processed Foods, all brands - Kissan, Knorr and
Annapurna grew well. Ice-Cream continued its volume led growth and 10 new Swirls
parlours were started during the quarter.

Pure-It is making excellent progress and expanding its national franchise through
innovation and channel expansion. A value added offering, Pure-It Autofill, was launched
during the quarter.

15
Increased cost savings and buying efficiencies improved Gross Margins and significantly
reduced cost of goods sold by 480 bps which were reinvested behind brands. A&P
expenditure grew by 66% to support innovations and further strengthen market
competitiveness. Underlying operating profit grew 5% and Operating margin excluding
mark to market (MTM) accounting impact on forex exposures, improved 10 bps to
16.8%, despite the 530 bps increase in brand investments. Excluding mark to market
(MTM), PAT (bei) was flat. Net Profit improved 5% due to exceptional gains from
property disposal in the current quarter.

Harish Manwani, Chairman commented: “We are seeing good results from the actions
that we have taken to drive growth. Volume growth accelerated in the quarter, backed by
quality innovations, increased brand support and continued focus on market execution.
We are committed to strengthening our market leadership and will invest appropriately in
an increasingly competitive environment.”

16
 3.1 HUL OVERVIEW AS A WHOLE

Date of Establishment 1933

Revenue 4330.02 ( USD in Millions )
Market Cap 504349.345316 ( Rs. in Millions )
Corporate Address Hindustan Lever House,165/166 Backbay
Reclamation, Mumbai-400020, Maharashtra
www.hll.com
Management Details Chairman - Harish Manwani
MD - Nitin Paranjpe
Directors - A Narayan, Ashok K Gupta,
C K Prahalad, D S Parekh, D Sundaram, Dhaval
Buch, Douglas Baillie, Gopal Vittal, Harish
Manwani, Nitin Paranjpe, RA
Mashelkar and S Ramadorai
Business Operation Household & Personal Products
Background Hindustan Unilever (HUL) is the largest fast moving
consumer goods (FMCG) company, a leader in home
& personal care products and foods & beverages.
HUL's brands are spread across 20 distinct consumer
categories, touching lives of every 2 out of 3 Indian.

It has employee strength over 15000 & 1200 managers.

It has created widespread network through its 2000
Suppliers & Associates.
Financials Total Income - Rs. 208071.175 Million ( year ending
Mar 2009)
Net Profit - Rs. 25007.057 Million ( year ending
Mar 2009)
Company Secretary Ashok K Gupta
Auditors Lovelock & Lewes

17
Hindustan Lever Limited (HLL) was India’s largest fast moving consumer goods
(FMCG) company. HLL was a leader in many product categories like soaps, detergents,
skin/hair care products, personal products and dental care products. It was also a leading
player in the foods business – branded tea, branded coffee, ice cream, culinary products,
specialty chemicals & animal feeds. HLL marketed more than 110 brands.

HLL had over 36,000 employees, and provided indirect employment to about 2 lakh
people. Its operations were spread across 70 locations in India. HLL had over 100
factories, many of which were located in the rural and backward regions. HLL’s large
distribution network consisted of more than one million outlets spread across the country.
HLL was India’s leading exporters of cosmetics, toiletries and tea. HLL exported
beverages, soaps, detergents, personal products, agricultural commodities, marine
products, leather products, digital thermometers and chemicals. HLL was also the largest
exporter of high quality packaged tea from India.

In the 1990s, HLL used mergers and acquisitions as a strategic tool to generate faster
growth. HLL consolidated its position with three mergers – with soaps and detergents
manufacturer TOMCO, beverage-maker Brooke Bond Lipton, and personal products
company, Pond’s. The company also made five acquisitions – ice-cream brand, Kwality
and Dollops, foods manufacturing companies, Kothari General Foods and Kissan, and
cosmetics company, Lakme. In the 1990s, HLL managed to achieve a CAGR of 35
percent in revenues, due to the mergers with TOMCO, Brooke Bond Lipton India
Limited (BBLIL) and Pond’s India Limited (PIL).

Hindustan Lever Research Center (HLRC) collaborated with various scientific and
academic institutions and also linked to Unilever’s information technology network to
facilitate speedy exchange of information and faster product development. HLRC
enabled HLL to use unconventional oils like neem, karanja, castor, and rice bran as
substitutes for imported fatty oils in soap making. It also provided support to the
chemicals business in nickel catalysts, aroma chemicals, biopolymers and oleo-
chemicals.

HLL had a vast portfolio of products and served almost every segment of the market. It
had formulated some guidelines for product development:
• Watch the consumers and work backwards.
• Check the price the consumer wants to pay for the product, deduct the expected profits
and then target the costs.
• Tailor the products according to the need of the consumer.
• Understand the triggers and barriers in a consumer’s behaviour.

18
HLL was the largest media buyer in India. It regularly sponsored top rated programs and
feature films on television. Due to its bulk purchases, HLL had the clout to negotiate
hefty discounts. HLL used lifestyle advertising in a big way to launch and promote its
products.

HLL’s distribution network was spread throughout the country. Wholesalers were the key
link in HLL’s distribution system. They performed a whole range of marketing functions
between the factory and the retailer’s shop. HLL attempted to make its supply chain
leaner to ensure fresh stocks, high service reliability and more frequent servicing. A
satellite-based communication network linking factories, depots and offices, enabled the
company to respond quickly to changing market needs and reduce inventory levels.

HLL had established a formidable reputation for being one of India’s best employers.
Three factors gave HLL’s Human Resources Management (HRM), a distinctive edge –
training, systems and culture. HLL’s carefully planned training programs prepared fresh
recruits for both specialist and generalist roles.

HLL planned to double its sales every four years and its profits every three years. HLL
identified foods as a thrust area, following the decision by Unilever to select India as a
major hub for this business. HLL also identified branded commodities and frozen
vegetables as two potential areas. In the beverages business, HLL had pursued backward
integration by acquiring tea gardens in Assam and West Bengal. The move was made to
counter the rise in leaf prices, which gave an advantage to competitors like Tata Tea, who
owned tea gardens.

19
3.2 MERGERS & ACQUISITIONS:
Merging Merged with Appoint Effective Date of Share Value
Company ed Date allotment ratio of
Date fractio
n (Rs)
Kothari General Brooke Bond 1-Jan-92 1-Jan-92 30-Jun-92 21:1 7.00
Foods India Ltd.
Corporation Ltd.
Tea Estates India Brooke Bond 1-Jan-93 1-Jun-93 24-Aug-93 10:12 35.25
Ltd. India Ltd.
Doom Doom Brooke Bond 1-Jan-93 1-Jun-93 24-Aug-92 10:11 35.25
India Ltd India Ltd.
Kissan Products Brooke Bond 1-Apr-93 20-Jan-93 22-Jan-94 1:100 N.A
Ltd. India Ltd.
Brooke Bond 1-Jul-93 9-Mar-94 16-May-94 10:9 48.99
India
Ltd[ name
Lipton India Ltd. changed to
Brooke Bond
Lipton India
Ltd.(BBLIL)]
The Tata Oil Hindustan 1-Apr-93 28-Dec-94 5-Apr-95 15:2 38.86
Mills Company Lever Ltd.
Ltd.
BBLIL Hindustan 1-Jan-96 21-Mar-97 16-May-97 20:9 52.82
Lever Ltd.
Pond’s(India) Hindustan 1-Jan-98 15-Oct-98 3-Mar-99 4:3 525.00
Ltd. Lever Ltd.
Industrial Hindustan 1-Jan-99 9-Feb-00 23-Feb-00 5:2 N.A
Perfumes Ltd. Lever Ltd.
International Hindustan 1-Jun-01 26-Sep-01 20-Oct-01 3:2 73.84
Bestfoods Ltd. Lever Ltd.
Aviance Limited Hindustan 1-Jun-01 25-Sep-01 N.A N.A N.A
Lever Ltd.
Tea Estates India Demerger from 1-Apr-05 1-Dec-05 02-Dec-05 ^ N.A
Ltd.(Formerly Hindustan
known Lever Ltd.
as’Thiashola Tea
Company Ltd.)
(TEI)
Doom Doom Tea Demerger from 1-Apr-05 1-Dec-05 02-Dec-05 ^^ N.A
Company Ltd. Hindustan
(Formarly known Lever Ltd.
as’Daverashola
Tea Company

20
Ltd.)(DDT)
Lever India Hindustan 1-Apr-05 30-Dec-05 N.A N.A N.A
Exports ltd. Lever Ltd.
Lipton India Hindustan 1-Jan-05 30-Dec-05 N.A N.A N.A
Exports Ltd. Lever Ltd.
Merryweather Hindustan 1-Jan-05 30-Dec-05 N.A N.A N.A
Food Products Lever Ltd.
Ltd.
TOC Hindustan 1-Apr-05 30-Dec-05 26-Apr-06 500:1 N.A
Disinfectants Ltd. Lever Ltd. **
International Hindustan 1-Jan-05 30-Dec-05 26-Apr-06 1:1** N.A
Fisheries Ltd. Lever Ltd. *
Vashisti Hindustan 1-Jul-05 28-Feb-06 10-Apr-06 10:1* 28.00
Detergents Ltd. Lever Ltd. ***
Modern Food Hindustan 1-Oct-06 30-Mar-07 N.A N.A N.A
Industries(India) Lever Ltd.
Ltd & Modern
Food and
Nutrition
Industries Ltd.
Shamnagar Demerger of 1-Nov- 29-Mar-07 N.A N.A N.A
Estates Pvt. certain Units 06
Ltd.,Jamnagar from
Properties Pvt. Hindustan
Ltd. and Lever Ltd.
Hindustan
Kwality Walls
Foods Private
Ltd.(now known
as Daverashola
Estates Pvt. Ltd.)

21
Chapter : 4 HUL Brands

22
1. Food brands
2. Home care brands
3. Personal care brands
4. Water
5. Nutrition
6. Health,hygiene & beauty

23
24
4.1 Food brands :- HUL is one of India’s leading food companies. Our passion for
understanding what people want and need from their food - and what they love about it -
makes our brands a popular choice

1. Brooke Bond 3 Roses :- Playful banter, a little mischief, serious conversation…

there’s no time for young couples like the time spent sharing a cup of 3 Roses.

2. Annapurna :- Partnering with the mom in nurturing her dreams, Annapurna Atta is
aimed at helping her provide wholesome tasty nutrition to her family. 

3. Red Label :-India’s favourite cup of tea, the great taste of Red Label brings people
closer together and strengthens relationships.

25
4. Brooke Bond Taaza :-Brooke Bond Taaza lifts me and unshackles my mind,
allowing me to see and realize possibilities.

5. Taj Mahal :-Brooke Bond Taj Mahal is an exclusive selection of teas for the
discerning consumer.

6. Bru :- Ek cup Bru aur mood ban jae…

7. Kissan :- With Kissan, good food is loved not shoved!

8. Kissan Amaze Brainfood :- Kissan Amaze Brainfood is specifically designed for the
mental development of kids.

26
9. Knorr :- Knorr helps families make meal times special, nutritious, tasty and healthy.

10. Kwality Wall’s :- A good honest scoop of daily pleasure.

11. Lipton :- Lipton has a range of vitality teas that truly encompass the goodness of tea.

27
4.2 Home care brands :- HUL has a diverse portfolio of brands offering home care
solutions for millions of consumers across India.

1. Active Wheel :- Active Wheel de "Mehnat se Aazadi" Freedom from painful & tiring
laundry

2. Cif :- Cif- the best cleaner to let you shine.

3. Comfort :- The world’s largest fabric conditioner brand.

28
4. Domex :- The sheer power of Domex bleach gives you the confidence you need,
eradicating all known germs.

5. Rin :- Rin provides ‘best in class whiteness’ which is demonstrable.

6. Sunlight :- Sunlight is a color care brand

7. Surf Excel :- Giving your kids the freedom to get dirty and experience life, safe in the
knowledge that Surf Excel will remove those stains

8. Vim :- Created in 1885, the Vim brand is still innovating and using the magic of
natural ingredients to create unbeatable results over a hundred years later.

29
4.3 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.

1. Aviance :- Aviance enables women actualize their unique potential through expert
customized beauty solutions.

2. Axe :- Axe with Best Quality Fragrance

30
3. LEVER Ayush Therapy :- LEVER Ayush aims to help a new generation of Indians
rediscover everyday health and vitality through customized Ayurvedic solutions.

4. Breeze :- Breeze, with the goodness of glycerine gives soft, fragrant and smooth skin.

5. Clear :- New Clear with Essential Oils, guarantees Zero dandruff and leaves your
hair feeling fabulous.

6. Clinic Plus :- Clinic Plus is India’s largest selling shampoo and has won the trust the
millions of families across India.

31
7. Closeup :- Freshness that brings you Closer

8. Dove :- Dove stands for real beauty. All around the world, Dove is making real
women feel more beautiful!

9. Fair & Lovely :- More than 30 years ago, a unique brand was born. Wrapped within a
humble lavender tube, it went on to become the World’s No.1 Fairness cream.

10. Hamam :- Holistic skin care experiences perfected over the ages to deliver healthy,
beautiful skin

11. Lakme :- Lakme is an ally to the Indian Woman and inspires her to express her
unique beauty and sensuality. Thus, enabling her to realize the potency of her beauty.

32
12. Lifebuoy :- Lifebuoy is available in multiple variants in soaps and specialist formats
such as liquid handwash, catering to the entire family.

13. Liril :- Awaken, and enliven your senses with a Liril bath.

14. Lux :- Lux believes in passion for beauty. It continues to be a favorite with
generations of users for a sensuous experience of luxury.

15. Pears :- Pears – the purest and most gentle way to skincare!

16. Pepsodent :- Pepsodent India is committed to improve the overall Oral health of
Indians.

33
17. Pond’s :- Get the expert to look after your skin

18. Rexona :- Rexona gives you 24 hr protection from sweat and body odour and
therefore the confidence to handle whatever the day has in store.

19. Sunsilk :- Sunsilk encourages young women in India to live for today. Sunsilk helps
you transform the beauty of your hair instantly because LIFE CAN'T WAIT!!

20. Vaseline :- Your skin is amazing. It deserves to be treated as such.

34
 4.4 Water

Pureit is the  world’s most advanced in-home water purifier. Pureit, a breakthrough
offering of Hindustan Unilever (HUL), provides complete protection from all water-
borne diseases, unmatched convenience and affordability.

Pureit’s unique Germkill Battery technology kills all harmful viruses and bacteria and
removes parasites and pesticide impurities, giving you water that is "as safe as boiled
water". It assures your family 100% protection from all water-borne diseases like
jaundice, diarrhea, typhoid and cholera. What’s more, it doesn’t need gas, electricity or
continuous tap water supply.

Pureit not only renders water micro-biologically safe, but also makes the water clear,
odourless and good-tasting. Pureit does not leave any residual chlorine in the output
water.

The output water from Pureit meets stringent criteria for microbiologically safe drinking
water, from one of the toughest regulatory agencies in the USA, EPA (Environmental
Protection Agency).

The performance of Pureit has also been tested by leading scientific and medical
institutions in India and abroad.

This patented technological breakthrough has been developed by HUL. This state-of –
the-art engineering developed by a team of over 100 Indian and international experts
from HUL and Unilever Research Centres has made Pureit possible at the consumer price
of just Rs. 2000

Pureit runs with a unique ‘Germkill Battery Kit’™ that typically lasts for 1500 litres* of
water. The ‘Germkill Battery Kit’™is priced at Rs.365. This means consumers will get 4
litres of water that is ‘as safe as boiled water’ ™ for just one rupee, which works out to
an extremely affordable 24 paise per litre.

35
Pureit in-home purification system uses a 4 stage purification process to deliver “as safe
as boiled water” without the use of electricity and pressurized tap water. Pureit purifies
the input drinking water in four stages, namely;

1. Micro-fiber MeshTM - Removes visible dirt

2. Compact Carbon TrapTM - removes remaining dirt, harmful parasites & pesticide
impurities

3. Germkill ProcessorTM – uses 'programmed chlorine release chlorine technology'  and

its stored germkill process targets and kills harmful virus and bacteria

4. PolisherTM – removes residual chlorine and all disinfectant by-products, giving clear
odourless and great tasting water

5. Battery Life Indicator - Ensures total safety because when the germkill power is
exhausted, the indicator turns red, warning you to replace the battery Advanced Auto-
Switch off - In case, the battery is not changed when it turns fully red, as an additional
assurance of safety, the advanced Auto-Switch off will automatically switch-off the flow
of water.

Protect your loved ones with a Pureit today!

36
4.5 Nutrition
We've created policies and guidelines to ensure we always act responsibly when it comes
to health and nutrition.

Acting responsibly

Millions of people around the world enjoy the foods and drinks we create. So the
ingredients we use, the formulations, and the way we advertise and market our brands can
potentially make a big impact on global health.

We aim to act responsibly and have a strong nutrition policy. We've also developed a
carefully considered approach to health and nutrition which includes:

 encouraging a balanced diet with the right amount of proteins, carbohydrates, fats,
vitamins and minerals
 developing a growing range of low fat, low sugar, low calorie alternatives, plus
more 'active health' products
 marketing responsibility our foods and beverages and helping to reduce over-
consumption
 helping people understand the nutritional benefits of our products
 creating products that reflect the fact that people will only eat foods that they
enjoy
 having sound specific evidence underpinning all our claims
 making significant contributions to researching the relationship on nutrition and
health, such as the effects of good fats (unsalted fats), fruits & vegetables and
vitamins and minerals

Clear communication

We've also developed a set of marketing principles to ensure we're always 'honest, decent
and truthful' in our communication – which include special principles on advertising to
children.

As well as excluding anything that appears to condone over-consumption in our

marketing, we also prohibit anything that undermines the promotion of healthy, balanced
diets and lifestyles, or misrepresents snacks as meals. We will also make sure that any
claims made in our marketing about any of our products are supported by scientific
evidence.

Under our principles for marketing to children, we ensure our advertisements don't
convey misleading messages, don't undermine parental influence, don't encourage pester
power, don't suggest time or price pressure, don't encourage unhealthy dietary habits, and
don't blur the boundary between promotion and content.

37
In addition, as well as supporting the development of international self-regulatory codes
for all marketing and advertising, we recently agreed to voluntarily restrict all paid
marketing communications (with the exception of packaging) directed primarily at
children under the age of six years.

We believe that by putting these principles in place, we're not only doing the right thing,
but we're being proactive through voluntary self-regulation – instead of simply reacting
to external pressures.

Guideline Daily Amounts

Along with other large food companies, Unilever has introduced an extended nutrition
information system which will make it easier for you to select a balanced diet.

What does 'Guideline Daily Amount' mean?

Our requirements for calories and nutrients differ according to gender, age, size, body
weight and activity levels. That is why the Guideline Daily Amount is not a target for
individuals but an average guideline for healthy adults, based on international studies and
recommendations. GDAs used in food labelling take the values for adult women – this
provides a sensible average for the needs of the majority of the population.

The table below shows the GDAs for an average adult:

Calories 2,000 kcal

Protein 50g
Carbohydrates 270g
Sugars 90g
Fat 70g
Saturates 20g
Fibre 25g
Sodium (salt) 2.4g (6g)

38
Five nutrients

Most GDA labels will give you information for these five nutrients: calories, sugars, fat,
saturates and salt or sodium. The number of GDAs can be extended to other nutrients
provided broad international agreement on recommended amounts.

Calories:

Calories help you to replace the energy you use during the day and at night – energy is
needed not just for exercise but for everything you do, even breathing and sleeping. So
you need to ensure that the energy you use balances out the energy you take in. The
average person needs about 2,000 calories per day.

Sugars:

The sugars in your diet come from many places: some of them obvious, like sugar
sprinkled on strawberries or stirred into a cup of tea, others where you may not expect
them to be, like the naturally occurring sugars found in fruit, fruit juice and milk. You
should aim to stay within the guideline daily amount of 90g of sugars a day.

Fat:

The GDA fat icon represents the total amount of fat in a portion of the product. This
includes both unsaturated fat and saturated fat. A healthy diet should always include a
certain amount of fat because, among other things, it provides energy and essential fatty
acids, and helps you to absorb vital vitamins. Try to eat no more than your guideline daily
amount, though, and go for unsaturated fats as much as possible – like the ones you find
in oily fish, nuts and seeds, avocado and sunflower, rapeseed or olive oil and spreads
made from these. The GDA for fat for an average adult is 70g.

Saturates:

The GDA saturates icon represents the total amount of saturated fat in a portion of the
product. When eaten in excess, saturates can raise cholesterol, which contributes to heart
disease. Try to consume no more than 20g saturates a day.

39
Salt:

Too much salt* in our diet is linked to high blood pressure and heart disease. Many of us
consume far more salt than we need, so a diet that stays under our guideline daily amount
is something we should all be aiming for. The GDA for salt is 6g.

Alternatively you may see sodium on GDA labels instead of salt. Sodium is the part of
salt which is responsible for raising blood pressure. Sodium content can be converted to
salt content by multiplying it by 2.5. However, whether salt or sodium is represented, the
% GDA will be the same.

Making our food healthier

We care about health, which is why we're overhauling our entire food and drink portfolio.
We're cutting down levels of salt, sugar and trans fats and improving labelling to help
you eat better, feel better and stay healthy.

Nutrition Enhancement Programme

At Unilever, we understand just how important food is to our lives. Food doesn't just
sustain us, it can nourish and revitalise us. Good food and drink can improve our health
and vitality, be fun and bring families and friends together. We care about food because
you do.

Global focus

To help make sure that you get the most nutritional benefits from our foods, Unilever has
launched the Nutrition Enhancement Programme. The new programme will scrutinise
each and every product in our food and drink portfolio across the globe for levels of trans
fat, saturated fats, sodium and sugars. In addition, on-pack claims and information are
also being reviewed.

Raising the bar

So far, more than 16 000 products – covering our full foods range – have already been
reviewed. Each one has been carefully compared to an individual nutritional benchmark,
created by the Unilever Food and Health Research Institute using dietary
recommendations from international and national authorities. As well as improving our
existing products, these benchmarks are also playing a major role in the development of
future innovations.

Making a difference

The programme is already having a massive impact. All our brands will be making
changes as a result, either through product reformulation or communication.

40
Proud history

Unilever has a long history of improving the nutritional quality of our products – Knorr
first launched soup tablets with meat extract to provide nutrition for the poor in 1886.
More recently, Unilever has been reducing the level of trans fats in our spreads since the
1990s, when we were the first company to take action on the issue.

Changing lives

Our programme is not all about reducing levels of fat, sodium and sugar, though. Nearly
one-third of the world's children under five are malnourished, and malnutrition
contributes to half of all childhood deaths. To try to help overcome nutrient deficiencies
in developing countries, Unilever is also fortifying foods, such as enriching Annapurna
salt with iodine in Africa and India.

Nutritional Fun

Here are some fun ways to find out more about nutrition. With small changes to your
eating habits you can easily add more vitality to your life.

1. Find out more about energy :- Everyone needs it, but too much can cause more
harm than good. Use our step-by-step guide to help you get to grips with your energy
requirements.

2. Are you a healthy weight? :- Let us calculate your Body Mass Index. Provide your
height and weight details and we'll tell you how healthy you really are.

41
3. Find out how to burn off your lunch :- Everyone needs it, but too much can cause
more harm than good. Use our step-by-step guide to help you get to grips with your
energy requirements.

4. Exercise anywhere - there's no excuse :- You don't have to join a gym or run a
marathon to become healthier. Use your home and work surroundings to make a
difference.

5. Is your waist out of control? :- Worried about too much fat around your waist? Use
our calculator to work out your waist to height ratio.

6. Find out more about fats :- Is fat our friend? Find out how it keeps us healthy and
how to spot the good fats from the bad.

7. Hit the fat jackpot :- Do you ever wonder how much fat is in your food? Take a
spin on our virtual slot-machine and see how you can hit the jackpot.

42
 8. Make a healthy sandwich online :- Sandwiches can be healthy, but they can also
quickly become laiden with saturated fats. Make a healthy sandwich with our
interactive tool.

9. Spot the good fats in your food :- Not all fats are bad for you. Test yourself using
this tool. 

10. Find out more about salt :- Worried about eating too much salt? Find out how you
can change your eating habits without sacrificing great tasting food.

11. Experiment with herbs :- Swopping salt for herbs is the sensible and tasty
cooking option. But do you know your basil or thyme from your oregano and
coriander?

43
12. Find out more about fruit & vegetables :- Finding the time to eat our full daily
intake of fruit and vegetables can be almost impossible. Use our guide for ideas to
help solve this problem.

13. What is in your shopping basket? :- Is your shopping helping you to eat enough
fruit and vegetables? Play our speedy supermarket game to find out how easy it is
to make better choices at the checkout.

14. Find out more about sugar :- Sugar's a great natural product made by plants so
why do we have to be careful about how much we have?

15. Are you getting the right carbs from your lunch? :- Knowing you're getting the
right amount of carbohydrates, fibre and sugar from your favourite foods can be
tricky. So let this simple tool help you get to the bottom of this problem.

44
4,6 Health, Hygiene & Beauty
Unilever's vitality mission is a mandate to help people feel good, look good and get more
out of life. At the heart of this mission is hygiene and health through hygiene.

At the heart of our mission

What does 'vitality' really mean to billions of people in the world? How does it manifest
itself in their lives? What does it add to their lives when it is present? What are the
consequences when it is absent?

The desire to be clean, active, energetic and healthy is common to every person, whether
young or old, whether rich or poor. To billions in the developing world, health is simply
the absence of illness. For them, health is the ability to go to work, to provide a square
meal for their families. For their children, health is the ability to play, to go to school, to
work towards a better future. For the affluent, health is more than just physical well
being. For them the signs of good health – being active, energetic, feeling good, looking
good – allow them to get the most out of life. Yet for the millions of mothers who lose
their children to diarrhoea and upper respiratory infections, health is simply about staying
alive.

New risks

"The risks are likely to intensify," says Sally Bloomfield, a member of the International
Scientific Forum on Home Hygiene (IFH), which receives an educational grant from
Unilever. "As populations age and the incidence of immuno-deficient diseases such as
AIDS rises, more people will be vulnerable to the consequences of poor hygiene."

"Infectious diseases are also hopping around the world quicker than before due to
globalisation, as we saw with SARS and now with Swine Flu. In some cases, you can't
treat these with antibiotics as they're viral; others are bacterial but resistant to antibiotics,
such as the hospital superbug MRSA (Methicillin Resistant Staphylococcus Aureus)."

New pathogens – agents that can cause disease – are also constantly appearing. Since the
1970s, at least one new pathogen has been recorded each year. Good hygiene is often the
only way to avoid many pathogens and their consequences.

A simple solution

One of the main stumbling blocks, says Dr Val Curtis at the London School of Tropical
Medicine and Hygiene, is that most people do not use one of the world's most basic and
widely available home hygiene products – the humble bar of soap.

"Hands are a superhighway for transmitting germs, but most people don't wash their
hands with soap and water at key times," she explains. "In the UK, for example, only

45
30% of people wash their hands after going to the toilet and only 43% after changing a
nappy." The statistics in developing countries are similar.

Health through hygiene

So what's Hindustan Unilever doing?

One of our oldest brands, Lifebuoy, exemplifies our commitment to champion health
through hygiene for everyone.

Healthy living :- Living a healthy lifestyle is everyone's dream. But making it a reality is
easier said than done. Let us give you a helping hand.

1. Celebrating age & beauty :- There's a bewildering range of anti-aging treatments on

offer. But perhaps the most effective? Taking good care of yourself.

2. Helping your child have a healthy heart :- Children are spending more time indoors
- and that can have a knock-on effect on their health.

3. Defend with veg :- Are you getting the right amount of fruit and vegetables you need?
If not, then soup may be the answer.

46
4. The tea diet : - We know green tea is good. But can it also help you to a smaller
waist?

5. Create a home spa :- If you want to be pampered and give your skin a treat, there’s
no need to pack your bags and head for the nearest spa or health resort.

6. Cleaner teeth, better health :- Shiny, strong teeth make all the difference to the way
you look. Taking good care of them has wider health benefits too.

47
Chapter : 5 CHANNEL OF DISTRIBUTION

48
 5. Channels of Distribution of HUL

A brief explanation of different channels of distribution is given below:

1. Manufacturer _ Customer: This is also known as direct selling because no

middlemen are involved. A producer may sell directly through his own retail stores,

for example, Bata. This is the simplest and the shortest channel. It is fast and

economical. Small producers and producers of perishable commodities also sell

directly to the local consumers. Big firms adopt direct selling in order to cut

distribution cost and because 274 they have sufficient facilities to sell directly to

the consumers. The producer or the entrepreneur himself performs all the

marketing activities.

2. Manufacturer _ Retailer _ Customer: This is one stage distribution channel having

one middleman, i.e., retailer. In this channel, the producer sells to big retailers like

departmental stores and chain stores who in turn sell to customer. This channel is very

popular in the distribution of consumer durables such as refrigerators, T V sets, washing

machines, typewriters, etc. This channel of distribution is very popular these days

because of emergence of departmental stores, super markets and other big retail stores.

The retailers purchase in large quantities from the producer and perform certain

marketing activities in order to sell the product to the ultimate consumers.

3. Manufacturer _ Wholesaler _ Retailer _ Customer: This is the traditional channel

of distribution. There are two middlemen in this channel of distribution, namely,

49
wholesaler and retailer. This channel is most suitable for the products with widely

scattered market. It is used in the distribution of consumer products like groceries, drugs,

cosmetics, etc. It is quite suitable for small scale producers whose product line is narrow

and who require the expert services and promotional support of wholesalers.

Channel Design Decision

Analyzing consumer service needs.

Setting channel objectives and

constraints

Identify Major alternatives

Intensive Selective Exclusive

distribution distribution distribution

Evaluating major alternatives

50
Intensive distribution

 Distribution through every reasonable outlet available - FMCG

 Strategy is to make sure that the product is available in as many outlets as

possible , Preferred for consumer, pharmaceutical products and automobile spares

Selective distribution

Multiple, but not all outlets in the market a few select outlets will be permitted to keep

the Products Outlets selected in line with the image the company Wants to project

Preferred for high value products Tanishq jewelry Keeps distribution costs lower .

Exclusive Distribution

Highly selective choice of outlets - may be even one outlet in an entire market -

car dealers Could include outlets set up by companies - Titan, Bata Producer wants a

close watch and control on the distribution of his products.

51
52
5.1 Channel Management Decision

53
5.2 BUSINESS MODEL OF HUL:

54
 5.3 COMPETITORS OF HUL :-

 DABUR INDIA
 COLGATE PALMOLIVE
 GODREJ CONSUMER
 MARICO
 P&G HYGINE
 GODREJ INDUSTRIES
 GILLETTE INDIA
 EMAMI
 JYOTHY LABORATORIES
 HENKEL INDIA
 RAYBAN
 FEM CARE PHARMA
 AMAR REMEDIES
 JHS SVENDGAARD
 JL MORISON INDIA
 PEE CEE COSMA
 MULLER & PHIPPS
 ADOR MULTIPROD
 POLAR PHARMA
 PARAM COSMETICS
 MY FAIR LADY
 VELVETTE INTL. PHARMA
 JYOTI COSMETICS

55
5.4 Innovation in Unilever

Innovation is the engine of Unilever’s growth; the lifeblood of our business. Our future
depends on our ability to bring bigger & better innovations to market more quickly than
our competitors.

Our R&D leadership :- Professor Geneviève Berger, Chief Research &

Development Officer and Vindi Banga, President Foods, Home & Personal Care
outline how our R&D teams create unique products with proven benefits for
consumers around the world.

Research & development in Unilever :- Research & development plays a key role in
delivering proprietary breakthrough innovations. At Unilever, R&D is treated as an
investment aligned closely with our overall business strategy.

The science behind success :- The common thread running through all our R&D
activities is a direct connection between science, technology and consumer needs.

56
Areas of innovation :- Unilever is recognised as a world leader in R&D, both in
terms of innovation (new products and mixes) and renovation (refreshing existing
products).

How we work :- We employ more than 6000 R&D professionals in six global
research centres, 13 global product development centres and regional development &
country implementation centres.

Responsible innovation:- We believe our products make a real contribution to an

individual’s wellbeing and that of their community, while having the least possible
adverse effect on the environment at every stage in the product lifecycle.

57
5.5 Innovation Centre On the map

58
Chapter : 6 SWOT ANALYSIS

59
 SWOT ANALYSIS:

Strengths

 HLL enjoys a formidable distribution network covering over 3400 distributors

and 16 million outlets. This helps them maintain heavy volumes, and hence, fill
the shelves of most outlets.
 The new sales organization named 'One HLL' brings "Household and Personal
Care" and foods distribution networks together, thereby aligning all the units
towards the common goal of achieving success.
 HLL has been continuously able to grow at a rate more than growth rate for
FMCG Sector, thereby reaffirming its future stronghold in Indian market.
 Project Shakti - Rural India is spread across 627,000 villages and possesses a
serious distribution challenge for FMCG Cos.
 HLL has come up with a unique and successful initiative wherein the women
from the rural sector market HLL products, and hence, are able to reach the same
wavelength as of the common man in village.
 Apart from product reach, the initiative also creates brand awareness amongst
the lower strata of society. This has brought about phenomenal results.

60
Weakness

 HLL's market dominance, originating from its extensive reach and strong brand
presence, allowed it to raise the prices even as raw materials were getting
cheaper.
 Hence, though the volumes decreased, the margins grew, and company was able
to earn more profits. But higher margins attracted competition in areas of
operations.
 HLL's strategy remained focused on creating power brands and earning higher
margins. It was not left with any other option but to try cutting down the costs in
order to protect volumes, if not increase it.
 The key differentiators for an FMCG player are ability to call shots and pricing
power, and HLL has shown weakness over both these factors.
 HLL's weakness was its inability to transform its strategies at the right time. They
continued with the same old strategy which helped them gain profits but was not
genuine in this changed environment.
 HLL's risk aversion and market myopia led to stagnation of business, and
ferocity of competition forced it into a defensive mode.

61
Opportunities

India is one of the world's largest producer of FMCG goods but its exports are
miniscule as compared to production.
Though Indian Cos. have been going global, their focus is more towards Asian
countries because of the similar preferences.
HLL is one of the top companies exporting FMCG goods from India. An
expansion of horizons towards more and more countries would help HLL grow its
consumer base and henceforth the revenues.
Opportunity in Food Sector - The advent of modern trade has opened up greater
opportunities for HLL to diversify its brand and strength its food division. It could
look at introducing products from its parents stable like margarines and could also
look at expanding its Knorr range of products.
Well-placed to take advantage of future FMCG Growth - HLL reach out 80% of
207 million households in the country through various brands. It has a very well-
defined product portfolio spread across many product categories.
Penetration levels for some major categories like skin-cream (22%), shampoo
(38%), toothpaste (48%) and processed foods, continue to remain low offerings
but great growthopportunities products.

62
Threats

 ITC has reduced its dependence on the cigarettes business - Contribution of the
core business in revenues has come down from 87% in FY99 to 70% in FY05.
 Over a period of five years, ITC has extended its presence into areas like foods,
retailing, hotels, greetings, agri, paper, etc. These are businesses that can give it
growth impetus in the long run.
 With ITC gaining momentum in each of these businesses, it is turning into a
consumer monolith, and hence, the greatest threat to HLL's Business. SSKI India
has gone on to say, "We maintain Out performer on ITC with a price target of Rs.
2200, while our Under performer call on HLL remains unaltered (price target of
Rs. 160)."

63
 Chapter : 7

FINDING

 India is one of the most exciting markets offering great potential. Over the next 10
years, the per capita income in India is likely to double. In FMCG, there is an
opportunity to catalyze penetration, increase usage, and upgrade consumers. As a
result, the FMCG market is expected to grow to over Rs.100,000 crores from its
current base of Rs.40,000 crores.
 The new Hindustan Lever see an exciting opportunity for growth. They have 35
powerful brands covering all segments, with leading market positions in most.
Today, these are stronger and more relevant to the consumer than ever. The
people are energized by the scale of the opportunity and determined to seize it.
 The scale of the business and operations gives them the resources needed. They
are delivering good services and the changes they brought in the products are well
taken by the customers, by this they are generating sustainable profitable growth.
 The rural India harbors 70% of the total population. This vast population has now
a high propensity to consume and they have much more per-capita income than
earlier. With higher education and better sense of things they can rule the world in
a much better way.
 The various local languages and the dialects make the promotion in far interiors
very difficult but these are the most potent areas that are still untapped, so it is a
daunting but rewarding task for the companies to make a move and to understand
the needs and the requirements of the rural people. The companies have started to
follow this track and exploit the market.
 The Indian growth story is now spreading itself to India's hinterlands. With rising
incomes, both consumption and production have increased significantly. Food
grain production was in excess of 227.3 million tones in 2007–08 which was an

64
 increase of an increase of 4.6 per cent over the previous year. In 2008, the rural
market has grown at an impressive rate of 25 per cent compared to the 7–10 per
cent growth rate of the urban consumer retail market.
 In most of the rural areas in different parts of the country, there is considerable
awareness on various latest products that are available in the market. This has
been possible due to the penetration of cable and satellite channels that have
brought down the world at the finger tips of the common man. The media
influenced the mindset of the rural consumer to such an extent that people who
had money started purchasing the products unmindful of the costs, just to satisfy
their needs as well as their ego. But the growth of rural market could be attributed
to many other reasons that in one way increased the sales as well as the profits of
the companies. Some of the important causes for the growth of rural markets are –

The rise in disposable income of the rural families

 The economic boom

 Timely rains
 Rural population involved themselves in business other than agriculture
 Increase white-collar jobs in nearby towns
 Commercialization of agriculture
 Saturation of the urban markets
 Media penetration in rural areas (particularly satellite channels)
 Globalization
 Economic liberalization
 Revolution in the Information Technology
 Women empowerment
 Improving infrastructure

However, there was a significant role of the corporate enterprises simultaneously in the
development of rural market. Their timely intervention into the rural areas, their
appropriate planning, their perception and identification about the growth of rural
markets and the use of marketing strategies all have equally contributed for the progress
of rural markets.

65
 Even though corporate houses were hedged with so many problems in the rural
areas, they saw a galore of opportunities in the rural market and converted all the
pessimistic characteristics of the rural market into affirmative attributes.
 They satisfied themselves with the availability of limited infrastructure; saw a
sign of prosperity rather than fear during the entry of competitors into the rural
markets, showed excitement at the availability of satellite channels in the rural
households, visualized their cash bells ringing with the increase in purchasing
power of the rural masses that came equivalent to their urban counterparts.
 They traced a constant rise in the demand for those products that were once
confined mostly to the urban houses. But, blame it on the kind of awareness
created by the companies – people started using the products for other purposes as
seen earlier.

66
 SUGGESTIONS

1) Suggestion: It is recommended that the HUL should focus more on the utility of the
products while promoting in the rural areas. The life-style of these people is different
from those in the urban areas. These people want value for their money, so they
want the promotions to be more informative rather being more glamorous. The
“value-for-money” means that people will definitely buy, but they will buy only that
product which suits their needs. If once they purchase a wrong product they will
never purchase it again. This word-of-mouth may spread across and company might
lose in the long run.

2) Suggestion: The HUL should provide full information in the rural promotions
starting for the need, utility, availability, price and the pack sizes available. It is
recommended that the pack sizes should be small and the pricing should be done in
coinage system example: Re.1, Rs.2, Rs.5, Rs.10 etc. This increases the affordability
among the rural consumers.

3) Suggestion: It is recommended that the brand ambassadors should be relevant to

the product and must look like he/she would be using the product in the daily life
style. Merely promoting the product by glamorous model may generate sales in urban
areas but for rural areas, information is of prime importance than glittering dances and
models. The companies should be very specific for choosing the brand ambassadors
for the rural areas as it may either boost up the sales or completely wash them out of
the market.

4) Suggestion: It is recommended that the HUL should have separate strategies for
rural as well as urban markets and should take care of addressing the needs of the rural
people in their promotions. They need information so they should be provided with it.
The rural promotions should use high profile celebrities but only to an extent and not

67
in all products. The rural mass is very specific and may discard the product completely
if not satisfied.

Chapter 8

CONCLUSION

In recent years, the FMCG sector declined due to downtrading. Also because of
presence of large number of companies trying to seize this opportunity, this force
the old HLL for the change and thus, their transformation has resulted in a new
HLL, which has successfully faced this challenge and reversed this trend. It has
done so by substantially strengthening their brands and building capabilities. This
has already begun to yield benefits and they are returning to growth. Volume
growth is being followed by value growth, which in turn is bringing profit growth.

India is one of the most exciting markets offering great potential. Over the next
10 years, the per capita income in India is likely to double. In FMCG, there is an
opportunity to catalyze penetration, increase usage, and upgrade consumers. As a
result, the FMCG market is expected to grow to over Rs.100,000 crores from its
current base of Rs.40,000 crores.

The new Hindustan Lever see an exciting opportunity for growth. They have 35
powerful brands covering all segments, with leading market positions in most.
Today, these are stronger and more relevant to the consumer than ever. The
people are energized by the scale of the opportunity and determined to seize it.
The scale of the business and operations gives them the resources needed. They
are delivering good services and the changes they brought in the products are well
taken by the customers, by this they are generating sustainable profitable growth.

68
 Chapter : 9

BIBLIOGRAPHY

WEBSITES

 www.WIkepedia.com

 www.scribd.com

 www.Hll.com

 www.Fmcg.com

Magazines

 Business Today
 Investors India
 Business World
 Economic Times
 Business Standard

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