STUDENT NAME COURSE UOB NUMBER BATCH NUMBER SUBJECT WORD COUNT

: Sharath Shyamasunder : M.B.A. : 09034024 : MBBD 51010A : Marketing : Less than 3500 words

TABLE OF CONTENTS
Table of Contents................................................................................................2 MARKEting Plan for Hindustan Unilever Limited:-Giants in FMCG 1. Terms of reference:.................................................................................4 2. Executive Summary.......................................................................................5 3. Mission and vision:.........................................................................................6 3.1 Line of Business:.......................................................................................6

3.2 Target Market:..............................................................................................6 3.3 Technology Used:..........................................................................................7 4. External Marketing audit:...............................................................................8 4.1 Macro Business environment:.......................................................................8 4.2 MICRO Business environment:....................................................................11 5. Internal Marketing Audit:..............................................................................13 5.1 Operating Results:......................................................................................13 5.2 Strategic Issues Analysis.............................................................................14 5.3 Marketing Mix effectiveness........................................................................18 6. SWOT Analysis..............................................................................................21 7. Marketing Objective-Recommendations......................................................23 7.1 Strategic thrust...........................................................................................23 7.2 Strategic Objectives...................................................................................24 8. Core Strategy..............................................................................................25 9. Marketing Mix Decisions or Recommendations...........................................25 9.1 Product........................................................................................................26 9.2 Price............................................................................................................26 9.3 Place...........................................................................................................26 9.4 Promotions..................................................................................................27 10. Budget........................................................................................................ 28 2

11. Organisation, implementation and control................................................29 12. Reflexive account.......................................................................................30 Reference..........................................................................................................32 Appendix A....................................................................................................33 About Hindustan Unilever Limited...................................................................33 Appendix B....................................................................................................35 Political/Legal: ..........................................................................................35 Economic: .................................................................................................... 36 Ecological/Physical environment: ...................................................................37 Social/Cultural:..............................................................................................37 Technological:...............................................................................................37 Corporate Responsibilities...............................................................................38 Appendix C....................................................................................................39 Competitor Analysis.......................................................................................39 Appendix D....................................................................................................40 Common segmentation variables for detergents of HUL...................................40 Appendix E....................................................................................................44 Distribution and Retail...................................................................................44 Appendix F.................................................................................................... 48 Appendix G....................................................................................................58 Appendix H....................................................................................................59 15. Appendix B .35 16. Appendix C 38 17. Appendix D ...40 3

18. Appendix E .43 19. Appendix F .47 20. Appendix G .57 21. Appendix H 58

MARKETING PLAN FOR HINDUSTAN UNILEVER LIMITED:GIANTS IN FMCG 1. TERMS OF REFERENCE:

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Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company, with leadership in Home & Personal Care Products and Foods & Beverages. HUL's brands, spread across 20 distinct consumer categories, touch the lives of two out of three Indians. (Refer Appendix A). The objective of this marketing plan is to provide a detailed formulation of the necessary actions to carry out the marketing program. The marketing plan shall highlight one of HULs strategic business units (SBU), its market share, competitors in that particular segment, SWOT analysis, overview of external and internal marketing audit, application of marketing mix and key strategic issues, recommendations, implementation of key strategies and implications of these strategies on HULs market share.

2. EXECUTIVE SUMMARY
This report examines Hindustan Unilever Limited with main focus on Detergent segment which is a major revenue generating segment. HUL has been the market leader for many years in this segment. This report showcases macro and micro environment for HUL. There is a huge market for detergents in India. HUL with the brand name it has, should cash in on the situation. A marketing plan has been developed keeping in mind current trends in consumer buying patterns. The marketing plan has been drawn upon by considering the feedback from consumers as well. The report consists of PESTL analysis, information on market segmentation, target market identification, competitor analysis, SWOT analysis, and competitive advantage and core competencies of HUL as a company. Marketing mix effectiveness of detergent segment of HUL has been discussed to achieve overall marketing objective for the sales of HUL detergents by targeting the right people and offering them with the improved range of products. New ways of promotions have been suggested. The budget for the promotions has been arrived upon. Various channels have been chosen to promote the detergents. New product launch is been suggested keeping in mind the feedback received from the respondents of the survey.

The marketing plan is developed by accessing the primary and secondary data. The prime objective of this report is to precisely analyze the current trends in detergent market in India and develop a strategy for HUL to regain their sales volume share. Some recommendations have been made to improve the way the products have to be promoted; there should be a monthly review by the management of HUL to access the situation.

3. MISSION AND VISION:

HULs vision is to continue to be an environmentally responsible organization making continuous improvements in the management of the environmental impact of their Operations. HUL strives to Add vitality to Life Their corporate purpose states that to succeed requires "the highest standards of corporate behaviour towards everyone we work with, the communities we touch, and the environment on which we have an impact." Source: HUL (2010). http://www.hul.co.in/ [Accessed 11/05/2010]

3.1

LINE OF BUSINESS:

HUL is India's largest fast moving consumer goods company, with leadership in Home & Personal Care Products and Foods & Beverages. HUL's brands are spread across 20 distinct consumer categories which touch the lives of two out of three Indians.

3.2 TARGET MARKET:

As stated earlier, this write up will focus on a SBU of HUL. The SBU in purview is Detergents. The brands to be discussed are Surf Excel Quick Wash, Surf Excel Blue, Surf Excel Automatic, Rin Advance, and Wheel Regular. The target market is women in India. Buying power is middle. It is a volume market hence customer is price sensitive.
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Figure 3.1 Per Capita Consumption of Detergents (US $ )

Source:Euromonitor 2009 Table 3.1 Segmentation of Detergent Powder Market Premium Surf Automatic-Front Load Surf Automatic- Top Load Ariel Amway Mid-Priced Surf Excel Blue Surf Excel Quick Wash Tide Henko Mass Market Wheel Regular Rin Advance Nirma Ghari

Source: Created by Sharath Shyamasunder (2010)

3.3 TECHNOLOGY USED:

In India, laundry detergent Surf Excel is used mostly for hand washing. When washing clothes by hand, its rinsing that often takes most time and uses most water. Understanding the problem
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Surf Excel is improved so that less rinsing is needed, while still getting clothes as clean as before. People keep rinsing in water till the lather is gone completely, so to cut the number of rinses by adding one of a number of anti-foam ingredients commonly used in machinewashing detergents. That would make the lather rinse more quickly. But Surf Excel Quick Wash can deliver a good lather at the washing stage, and reduce the need for the rinsing saving two bucketfuls of water per wash. Source: How Surf excel works? (2010) http://surfexcel.in/Product-Range/Surf-ExcelQuickwash.aspx [Accessed 25/05/2010]

4. EXTERNAL MARKETING AUDIT:

Marketing audit according to (Jobber, 2010) is A systematic examination of a businesss marketing environment, objectives, strategies and activities. External Marketing Audit is concerned with those factors over which the organization has no control. It can be classified into Macro environment and Microenvironment. Source: Jobber.D (2010) Principles and Practice of Marketing. McGraw-Hill education

4.1 MACRO BUSINESS ENVIRONMENT:

Table 4.1 PESTL Analysis

Political/Legal: Indian governments in excise policies duties

Economic: of Detergents segment of HUL has about 36% and segment accounts for at least 40% of the total segment has declined in the last two years, due to heavy competition. regulatory

lifting of the quantitative restrictions, market share in that segment (FY 08-09). This reduction automatic foreign investment has revenue. HULs market share in detergents fostered HULs growth. Removal of the

framework has allowed HUL to An increase is spending pattern has been explore every product and segment, witnessed in Indian FMCG market especially in without constraints on production the detergent market. capacity. Center for Monitoring Indian Economy Center for Monitoring Indian Economy (2010). http://www.cmie.com/ [Accessed 12/05/2010] (2010). http://www.cmie.com/ [Accessed 12/05/2010] Financial Times (2010) http://www.ft.com/ [Accessed on 13/05/2010]

Ecological/Physical environment:

Social/Cultural:

HUL has contributed significantly in The size of the detergent market in India is saving water through technology. estimated to at Rs.12, 000 Crores. Detergent Educating people on Rain water segment is characterized by high degree of harvesting, soil conservation and competition and high level of penetration. With reduction of greenhouse gases. rapid urbanization in India, emergence of small pack size and sachets, the demand for the A carbon reduction supply-chain detergents is flourishing. With the use of hard project has enabled (HUL) to be water for washing and scarcity of water it is awarded carbon credits. imperative that HUL produces products that suit the water type in India. (Refer Appendix C for information on Corporate social responsibilities) Annual report 2008-09 HUL. http://www.hul.co.in/ [Accessed 13/05/2010]

Technological: HUL has research centers in Bangalore and Mumbai which has more than 200 scientists and technologists. Addressing the washing needs of consumers is a key challenge for the laundry Research group. How to minimize water usage while washing? How to impart stain repellent treatment to garments? These are the questions which have been answered by HUL R&D team. Research and Development 2010 HUL. http://www.hul.co.in/careersredesign/carreerschoices/researchanddevelopment/ [accessed 13/05/2010] (Refer Appendix B for more information on Macro Environment)
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4.2 MICRO BUSINESS ENVIRONMENT:

Microenvironment as according to (Jobber, 2010) consists of factors in the firms immediate environment which affects its capabilities to operate effectively. The useful framework that can be utilized when undertaking this analysis is Porters Five forces model. This analysis is carried out at the level of Detergent SBU of HUL. Figure 4.1 The Five Forces model (Source: Adapted from Porter 1980)

Potential Entrants

Suppliers

Competit ive Rivalry

Buyers

Substitut es

Suppliers: HUL has a very strong supplier base. Supplier power is considerable in case of detergent segment of HUL as there is a lot of costing involved when switching suppliers. As HUL provides a large amount of its business to the suppliers, these suppliers are beholden to HUL. As said earlier, the supply power is limited. Potential Entrants:
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Given the capital investment required to enter the detergent market in India, with the pricing of the products being very low, threat of potential entrants is low. With a lot of local brands in the market and names like Nirma, P&G, the detergent market has become extremely competitive and crowded. For the new entrant to position its products on the shelves of retailers alongside Surf Excel, Rin, Henko and Rin would be a real challenge. Buyers: Buying power of retailers of HUL when it comes to detergent market is very high as they are able to negotiate on price. Buying power of consumers is low as the consumers are fragmented and they do not have a great influence on the price as well as the product. Buyer loyalty is considerably less when it comes to Mass market detergents, as the consumers of that segment are price sensitive. Consumers in the premium and mid priced segment are very loyal to the brand. Substitutes: There is a strong threat from substitutes from the local market especially in the rural market. Even though within the detergent market, brand succeeds in building up a competitive market the threats from substitutes are high such that the pricing power of HUL brands are eroded. Government regulations for local brands are very conducive to set up the business in India. For e.g. Local detergent brands like Ghari, RMC, etc. Competitive Rivalry: Consumers of detergents have enormous amount of choices. The brand loyalty in detergent segment is very poor. Price wars among competitors of HUL like P&G, Nirma is fierce. (Refer Appendix C).The competitive rivalry in the detergent segment is very high. Price wars are regular affairs which is beneficial from a customer perspective. Due to this the companies are forced to bring down their operational costs to survive in this hostile atmosphere. Figure 4.2: Indian Detergent Market
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Source: Russel Davis, Nirma 2007-08.

5. INTERNAL MARKETING AUDIT:

Internal Marketing Audit is concerned with those factors over which the organization has control. Source: Jobber.D (2010) Principles and Practice of Marketing. McGraw-Hill education

5.1 OPERATING RESULTS:

HUL is India's largest Fast Moving Consumer Goods Company, touching the lives of two out of three Indians. Detergent segment in HUL accounts for 48% of the total turnover.15, 28,391 tonnes of synthetic detergents were sold by HUL during January 2008- March 2009.The total sales value of detergents according to the annual report of HUL is 4908.46 Cr INR. Market share of HUL detergents is 36% as per annual report of HUL 2009. Figure 5.1 Sales value of various divisions of HUL from the period of Jan-08 to Mar09.
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Source: Annual report 2008-09 HUL. http://www.hul.co.in/ [Accessed on 1305/2010] Figure 5.2 Share value of HUL

Source: http://money.rediff.com/companies/hindustan-unilever-ltd/12520002 [Accessed on 01/07/2010]

5.2 STRATEGIC ISSUES ANALYSIS

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HULs current marketing objective is to improve the market share, which has gone down in the last two years through high marketing spend and bringing down the packaging cost of detergents. 4.2.1 Marketing segmentation Marketing segmentation as stated by (Ferrell, O.C and Hartline, D. 2007) is the process of dividing the total market for a particular product or product category into relatively homogenous segments. In the discussion that follows, we look more closely at segmentation in detergent markets by examining the different factors that can be used to divide the market. As table 4.1 illustrates, these factors fall into one of these categories: Behavioral segmentation, Demographic segmentation, Psychographic segmentation and Geographic segmentation. (Refer Appendix D)

Table 5.1 Common segmentation variables used in Consumer markets. Category Variables Examples
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Benefits sought Behavioral segmentation Product usage Occasions / Situations Price sensitive Age Gender Income Demographic segmentation

Quality, Value, Convenience, Heavy , Medium and Light, Non users Daily use Price sensitive, Value conscious, Status conscious 18-60 Male/Female Low income, Mid income, High income White collared, technical, Professional, Managers, Laborers, Homemakers, Retired, Unemployed High school, College graduate, Graduate Upper class, Middle class, Lower class, Poverty level Generation Y,X Baby boomers, Laggards Outgoing, Shy, Materialistic, Anxious, Civic minded, Venturesome Outdoor Enthusiast, Homely, Workaholic, Family centered Cleaning North, South, East, West Urban, Sub urban ,Rural

Occupation Education Social class Generation

Psychographic segmentation

Personality Lifestyle Motives

Geographic segmentation

Regional Population

Source: Hartline, D and Ferrell, O.C (2007) Marketing Strategy. Thomson SouthWestern

5.2.2 Competitive Advantage:

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HULs Competitive advantage lies in its strong and efficient distribution network. Its culture to continuously innovate for product betterment keeps them ahead of competition. Their high markets spend that enables their products gets a greater reach. HUL operates at zero working capital. The key is constant efforts to reduce capital investments by outsourcing manufacturing, streamlining supply chains and paying close attention to distributors performance*. Developing new channels like Rural marketing (for eg. Shakthi Ammas) and direct selling. Most importantly their products are low priced and good value for money and strong commitment towards improving the community. (For further information refer Appendix E). * Prahalad, C.K and Hammond, A, (2002) Serving the Worlds poor, Profitability, Harvard Business review. 5.2.3 Core competencies HUL has a wide range of quality products designed to meet the needs of the consumers. It has country wide reputation and presence. All their detergents are conservatively priced. They have an innovative style and low cost packaging. HUL has an excellent distribution network which enables greater reach. Their main focus on providing value to customers through continuous product innovation and to be known as socially responsible company. HUL has a very good brand name in the market which they have used to their advantage to maintain their market share.

5.2.4 Product Life cycle Figure 5.3 Product life cycle of HUL
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Source: Created by Sharath Shyamasunder (2010) HUL detergents are in between the growth and maturity stage. The marketing mix elements have been planned keeping the product life cycle in mind. Detergent features should be such that it is differentiated from the rest of the competition. Pricing should be lower because of intense competition. The distribution channels needs to be very effective with investment on IT, so as to increase the efficiency. Promotions are aimed at a larger target audience with focus on product differentiation. With right promotions in the right place, HUL can reap the benefits.

5.3 MARKETING MIX EFFECTIVENESS

5.3.1 Product: Current products offered by HUL (Detergent segment) are Surf Excel Automatic exclusively for washing machines, Surf Excel Blue, Rin Advance, and Wheel Regular.

Table 5.2 Segmentation of detergents offered by HUL

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Premium Surf Automatic-Front Load Surf Automatic- Top Load

Mid-Priced Surf Excel Blue Surf Excel Quick Wash

Mass Market Wheel Regular Rin Advance

Products are designed keeping in mind the nature of water in India and the scarcity of it. New technology wherein less water is consumed while washing clothes makes HUL products fare better. Detergents have micro granules which can penetrate into the fabric easily and remove the dirt and stains easily. They are available in small sachets also. Currently a lot of promotions are splashed in the media to educate the audience about the products. 5.3.3 Place

HUL products are made easily available through the efficient distribution system. The detergents are available in the Local grocery stores, Super markets and there is a door to door sale. (Refer Appendix E) Figure 5.4 Segmentation of detergents offered by HUL

5.3.2 Pricing The following are the prices of few detergents in India.
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Table 5.3 Prices of detergents in rupees Detergent Brands Surf Excel Quick wash Surf Excel Automatic Rin Advanced Wheel Regular Tide Naturals Nirma Henko 500 gm 1 kg 70 82 28 20 35 45 48 130 164 55 38 70 87 90 2 kg 260 320 125 72 135 165 169

Ariel 78 152 300 Source: Created by Sharath Shyamasunder (2010) 5.3.4 Promotions

Table 5.4 Various channels through which HUL promotes its detergents Print Media- HUL advertises in leading Television-Advertisements of dailies like Times of India and Indian express Detergents are aired in prime time to get which has a wide reach. the attention of women. Demo campaigns- Demo campaigns are done regularly with sales people going to household and give a demo to the consumers so that the consumers can have a firsthand experience and they believe what they see. Live shows-TV shows like Wheel Shrimati which is aired in prime time on National channel, the target audience being women was well received. Internet-Online promotions are conducted regularly on respective detergents websites. Hoardings- Hoarding advertisements are done usually during a new product launch or a reduction in price. For e.g. when the prices of Surf excel was cut by 5%, huge hoardings were put in prominent places across all cities. Radio- Radio Jingles are aired which promote detergents.

Rural Marketing- Rural campaigns such as Shakthi Amma have enabled HUL to get such deep penetration into the rural market.
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6. SWOT ANALYSIS
SWOT analysis as stated by (Baker, 1995) is a summary of the audit under the headings of internal strengths and weaknesses as they relate to external opportunities and threats. Figure 6.1 SWOT analysis Strengths Presence of established distribution networks in both urban and rural areas Attractive packaging and available in small quantities High brand value High spend on product innovation Opportunities Large Consumer base Forecast of Detergent market to grow in India Per capita consumption is High High consumer goods spending Weakness
Focus on building a power brand so

priced higher than others and neglecting other brands Gave unwanted publicity to Tide in the ad war between Rin and Tide Sticking to old strategies for long time Threats Emergence of Rural brands which are cheaper Imitation or Me-Too versions of detergents Price reduction by competitors

Strengths: One of the major strengths of HUL is its distribution network, which has foot print even in the rural areas. Their reach makes them the market leader in FMCG. The brand value of HUL products is very high so its keeps them ahead of competition. The need for product
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improvement and innovation is the main agenda of HUL which augurs well for the future. HUL has been continuously able to grow at a rate more than growth rate for FMCG Sector, thereby reaffirming its future stronghold in Indian market. Weakness: HULs extensive reach and country wide presence enabled them to rise the prices of the detergents even though the raw material prices were decreasing. This has allowed HUL to gain more profits but the volume came down, this allowed a lot of competitors to grow. HUL was backing its power brands with an idea to earn high revenues. HUL's weakness was its inability to transform its strategies at the right time. They continued with the same old strategy which helped HUL gain profits but was not genuine in this changing environment. The competition has put HUL on the defensive mode.

Opportunities: HUL has a large customer base; people who do not use HULs detergents but use other HUL products can be influenced to use HUL detergents. According to the forecasting done the detergent market is expected to grow by double digit. The per capita consumption of detergents in India is pretty high. The buying patterns of consumers for detergent segment have been changing which again augurs well for HUL. Threats: Strong backing of Power brands by HUL and the continuation of old strategy which helped HUL to gain in revenues created opportunities for its competitors to grow. This situation created avenues for Local detergent manufacturers to enter the market with cheap detergents. Lot of imitation or me-too products gained popularity at the expense of HUL. Government regulations have been relaxed which has helped the rural players to set up their business and they now pose a threat to HUL. The price war among HUL and its competitors has intensified and this has made HUL to cut down the prices of detergents. The market share and the sales volume has been affected due to the entry of local players.

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7.

MARKETING OBJECTIVE-RECOMMENDATIONS

For the Marketing objective to be set, we shall consider Strategic Thrust and strategic Objective. The planning phase of strategic marketing phase consists of (1) Situation Analysis (2) Market product focus and goal setting (3) Marketing program. Figure 7.1 the strategic marketing process
Market focus and Goal setting
Set market and product goals Select target markets Position the product

SWOT Identify industry standards Analyze competition Look for potential Markets

Marketing program
Develop the marketing mix Develop the budget, by estimating the revenues, expenses and profits

Marketing plan
Implementation phase
Obtain resources Design marketing organization Develop schedules Execute marketing Program

Results Control Phase

Control phase
Compare results with plans to identify deviations Act to correct negative deviations; exploit positive ones

Source: Kerin, A. R et al (2008) Marketing the Core, McGraw Hill-Irwin

7.1 STRATEGIC THRUST

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Strategic thrust defines which products to sell in which markets.HUL will go for existing product in the existing markets as they are doing well. There has to be a reduction in the prices as there is stiff competition. They can diversify their product range into liquid detergent, and then HUL will have a complete range of products for fabric care.

Figure 7.2 Ansoff Matrix PRODUCTS Existing New Market Penetration New Product Development Quality products for Washing Design detergents specially for woollen machines Recution in Prices Customer focus Market Development Develop a market in Liquid detergent segment Conduct demonstrations to observe the needs of Customer and educate them on the products Created by Sharath Shyamasunder (2010) clothes Design detergents specially for color clothing Develop an Insta-whitening system Diversification Diversify the products into liquid detergent segment

MARKETS

New

Existing

7.2 STRATEGIC OBJECTIVES

Figure 7.3 Strategic objectives for HUL detergent division Build Invest of new product development like
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Hold

Liquid detergents Invest on product innovation Harvest HUL has traditionally followed the Harvest method, wherein more emphasis was on maximizing profit margins, sales and market share was allowed to fall

Selective investment on new methods of packaging Divest Non performing brands such as Breeze is dropped from the Indian market

8.

CORE STRATEGY

Competitors of HUL in detergent segment are P&G, Nirma, Ghari, 555 etc. HUL initially had a strategy of increasing profit margins so the detergents were priced high when compared to the competition. The sales volume and the market share were affected due to this. The strategy now employed by HUL is that the detergents are priced on par with the competition and the advertisement expense has been increased by 66% when compared to 2008. HUL is targeting its competitors brands and is engaged in a price war to gain the market share. For e.g 30% cut in the price of Rin as Wheel had reduced the price. The Ad wars between Surf Excel and Tide, where HUL compared the two brands in terms of the content and the effectiveness. The competitive advantage which HUL has over its competitors is that they have an excellent distribution network. They have the brand name which has a country wide presence. Their penetration in rural areas cannot be matched by its competitors. Their continuous spend on R & D will help to build their product portfolio. The image that HUL as a socially responsible company goes down well with the public.

9. MARKETING MIX DECISIONS OR RECOMMENDATIONS

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9.1 PRODUCT
HUL can go with their existing range of detergents are they are doing well in terms of sales volumes. Their market share although has decreased, with the reduction in prices. An effort is there to get the production cost down by having pared down the color palette used for printing across many products. The system has been used to reduce printed packaging costs. Some non performing brands like Breeze should be shelved out. According to the survey results (Refer Appendix F) Surf excel is the most widely used detergent in its segment. The need to have a good fragrance in the detergents is emphasized. An Insta- whitener and liquid detergent market can be entered as per the feedback got from the survey.

9.2 PRICE
The prices of all the detergents of HUL have been reduced considerably to compete with the competitors. For e.g. 30% Price reduction in Rin and 20% price reduction in Surf excel they hope to get back that market share. If the production cost is reduced then the price of the detergents will come down. An effort to reduce the cost has to be a top priority.Zero inventory and Go to the market initiative to reduce cost and increase efficiency. (More information in Appendix G) Source: Sangani, P. Economic Times (2009), The Zero Effect Pg no 3.Available at www.hul.co.in/mediacentre/MediaCoverage/ [Accessed on 15/05/2010]

9.3 PLACE
The distribution network of HUL is one of the best in this industry. Efforts must be taken to use technology like SAP which help in managing the distribution effectively. Some of the benefits of SAP are

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Streamlined business operations Improved information sharing with partners even if they are not using SAPs solutions Increased supply chain efficiency through process-centric collaboration across the Enterpriseinternally and externally Enhanced value of legacy system

Source: Success stories of SAP www.sap.com/india/about/company/successes/pdfs/HUL.pdf [Accessed on 20/05/2010 (More Information in Appendix H) Introduction of Exclusive shelves of HUL products in Supermarkets wherein only HUL products are displayed together. This will enhance the shopping experience of the consumer and there will be no conflicts of brands.

9.4 PROMOTIONS
Great advertising is inspired by insights about brands, consumers, and how the two interact. It starts with a problem from the client and ends with a solution to the customers. As seen from the survey, many people do not identify HUL products and are not aware of the features of specific products, so an effort to educate the customer through promotions must be taken.

Creativity defined Creative ads make a relevant connection between the brand and its target audience and present a selling idea in an unexpected way. Creative ads present a selling idea. Media
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When and where a message runs can be as creative as the words and visuals. Everyday items have become media vehicles. HUL can promote its line of detergents on dress hangers in trains and buses frequented by women. The hangers can come with a message Want your dress to be bright and clean use Surf Excel/ Rin/ Wheel*. Source: Jeweler. A and Drewniany .L (2008) Creative strategy in Advertising. Lyn Uhl

10. BUDGET
Figure 10.1 Promotional activities to be undertaken by HUL to regain market share Promotional activities Description Budget in Lakhs (INR) % of total Budget for Promotions
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Television

Advertisements in channels like Star and Zee TV between 7.PM and 10.PM to reach the women who are the target audience Advertisement and promotions in major dailies like Times of India and Indian Express as they carry out exclusive sections for women Daag accha hai type of campaigns which catch the eye of the viewer

89450

35

Newspapers

38356

15

Mass media campaigns and creative ads TV shows sponsorship Radio Internet

25570

10

and the hanger promotion* Sponsoring TV shows where women 38356 are the main focus Radio jingles should be aired which should have catchy phrases Till date Internet marketing or Internet sales of detergents have not been implemented in a big way, if HUL can do it they can have a early entrant advantage Demonstrations in supermarkets with some contests and offers should 12785 12785

15 5 5

Demonstrations

38356

15

be carried out regularly. According to annual report of HUL 2009, the budget for sales promotion for the year 2009-10 would be 2,55,658 lakhs INR. I would recommend the amount to spend as shown in the table. Source: Annual report 2008-09 HUL. http://www.hul.co.in/ [Accessed 13/05/2010]

11.

ORGANISATION, IMPLEMENTATION AND CONTROL

The changing environment, the fierce competition faced by HUL in the detergent

segment calls for a marketing plan with a long term vision and in accordance with the companys objectives. The marketing plan formulated above is of such nature and needs the
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support of the management. The marketing team of HUL has to take full responsibility of implementing the marketing plan with the support of the management. The management should define the roles of people involved in carrying out the marketing plan. The budget needs to be allocated for the promotional activities and the marketing team should be accountable for the utilization of the funds. Reviews by the management should be an integral part of the implementation process. Control is required to take corrective actions from the feedback received from the market. Reviews by the management should happen regularly regarding the sales growth, expenses, R & D, feedback from the customers. The progress of the marketing plan should be closely monitored by the Business Manager of the detergent department.

12. REFLEXIVE ACCOUNT

The reason for choosing Hindustan Unilever Limited for this report is because of the fact that HUL touches almost every Indians life. I, myself have used most of the products of HUL and I am a very satisfied and a loyal customer of HUL products. Moreover the market for FMCG in India is set to grow in the years to come. HUL being the brand it is should take stock of the situation and prepare for the growth. Working on this report has been very enriching for me in terms of knowledge, and I have derived immense pleasure in researching on HUL. The response for my questionnaire was very encouraging and HUL products have got an excellent feedback. Problematic Areas in Research HUL is such a big brand that it is one of the most discussed companies in Management studies, so when I started researching about HUL, i was a little skeptical about choosing HUL. But later I realized I could contribute a new perspective to the HUL marketing plan. Although the response to the survey was encouraging, it took constant follow ups with the respondents. Compiling the responses was very time consuming and a tedious process. The reason that I started early on the project helped me, as i never faced a time crunch. Since HUL is a listed company in India and is one of the most discussed company, huge chunks of data was available on the internet like the annual reports,
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newspaper articles, Case studies. To go through them, understand the write ups and precisely use the information in the report was a very challenging task. What went right? As stated earlier since HUL is a listed company in India getting relevant data like Annual reports very relatively easier, compiling these data and arriving at PESTL analysis was easier. By speaking to few friends who work for HUL in different departments and understanding the work culture, marketing initiatives was very useful experience and this has helped me to present certain facsssts with more depth. Based on the product life cycle and the macro and micro environments the marketing mix decisions and SWOT has been derived. Role of Marketer Being in a Sales and marketing position for over two years has helped me visualize the plan with relative ease. Since marketing is the most important aspect of business as it has a direct impact on the companys profitability and sales, role of the marketer is very challenging. It requires constant interaction with customers as well people within the organization. Collecting the information from the customers and compiling the data in a way most suitable for the people concerned in the organization for e.g. R&D department is a vital function of a marketer. One of the things which have changed over the years is the perception of people that a company is not just a seller of products but also have responsibility to be more socially responsible. Being socially responsible means an organization shows concern for the people and environment in which it transacts business. It also means that these values are communicated and enforced by everyone in the organization. In addition to insuring these values exist within the organization and its business partners, social responsibility may also manifest itself in the support of social causes that help society. For instance, marketers may sponsor charity events or produce cause-related advertising. Marketers who are pursuing a socially responsible agenda should bear in mind that such efforts do not automatically translate into increased revenue or even an improved
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public image. However, organizations that consistently exhibit socially responsible tendencies may eventually gain a strong reputation that could pay dividends in the form of increased customer loyalty. Source: Social responsibility in Marketing (2010) http://www.knowthis.com/principles-of-marketing-tutorials/what-is-marketing/socialresponsibility-in-marketing/ [Accessed on 13/06/2010]

REFERENCE
Drummond, G and Ensor, J (2005) Marketing Concepts. Butterworth-Heinemann Ltd Hartline, D and Ferrell, O.C (2007) Marketing Strategy. Thomson South-Western Jeweler. A and Drewniany .L (2008) Creative strategy in Advertising. Lyn Jobber David (2010) Principles and Practice of Marketing. McGraw-Hill education Kerin A.Roger et al (2008) Marketing the Core. McGraw Hill-Irwin
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Michael J. Baker (1995) the Marketing Book. Butterworth-Heinemann Ltd Porter, M.E. (1980) Competitive Strategy. The Free Press, p.4. Prahalad, C.K and Hammond, A, (2002) Serving the Worlds poor, Profitability. Harvard Business review.

Sangani, P. Economic Times (2009), The Zero Effect Pg no 3.

Journals

Journal-Source: Anandan, C. (2007) A Study on Brand Preferences of Washing Soaps in Rural Areas, vol. 37,pp.3 Websites

HUL (2010). http://www.hul.co.in/ How Surf excel works? (2010) http://surfexcel.in/Product-Range/Surf-ExcelQuickwash.aspx

Center for Monitoring Indian Economy (2010). http://www.cmie.com/ Success stories of SAP www.sap.com/india/about/company/successes/pdfs/HUL.pdf

Social responsibility in Marketing (2010) http://www.knowthis.com/principles-ofmarketing-tutorials/what-is-marketing/social-responsibility-in-marketing/

APPENDIX A ABOUT HINDUSTAN UNILEVER LIMITED

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Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company, with leadership in Home & Personal Care Products and Foods & Beverages. HUL's brands, spread across 20 distinct consumer categories, touch the lives of two out of three Indians. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of Rs.13, 913 crores. The mission that inspires HUL's over 15,000 employees is to "add vitality to life". With 35 Power Brands, 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. A Fortune 500 transnational, Unilever sells Foods and Home and Personal Care brands in about 100 countries worldwide. CEO: Mr.Nitin Paranjpe Group Turnover of 13913.4028 Cr. And profit of INR 1914.8897 Cr. Average Market Capitalization for the last 4 years is INR 56000 Cr. Soap & Detergent Division contributes INR 6374.5265 Cr. OVER 100 YEARS LINK WITH INDIA YEAR MILESTONES 1888 Sunlight soap introduced in India. 1895 Lifebuoy soap launched; Lever Brothers appoints agents in Mumbai, Chennai, Kolkata, and Karachi. 1902 Pears soap introduced in India. 1905 Lux flakes introduced. 1914 Vinolia soap launched in India. 1922 Rinso soap powder introduced. 1937 Mr. Prakash Tandon, one of the first Indian covenanted managers, joins HVM. 65% of managers are Indians.
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1956 Three companies merge to form Hindustan Unilever Limited, with 10% Indian equity participation. 1958 Research Unit starts functioning at Mumbai Factory. 1959 Surf launched. 1961 Mr. Prakash Tandon takes over as the first Indian Chairman; 191 of the 205 managers are Indians. 1967 Hindustan Unilever Research Centre, opens in Mumbai. 1969 Rin bar launched; Fine Chemicals Unit starts production; Bru coffee launched 1977 Jammu synthetic Detergents plant inaugurated; Indian shareholding increases to 18.57%. 1982 Government allows 51% Unilever shareholding. 1991 Surf Ultra detergent launched. 1995 HUL and Indian cosmetics major, Lakme Ltd., form 50:50 joint venture- Lakme Lever Ltd.; HUL enters branded staples business with salt; HUL recognised as Super Star Trading House. 1997 Unilever sets up International Research Laboratory in Bangalore; new Regional Innovation Centres also come up. 2005 Launch of "Pureit" water purifiers 2007 Company name formally changed to Hindustan Unilever Limited after receiving 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. Source: Annual report 2008-09 HUL. http://www.hul.co.in/ [Accessed 13/05/2010]

APPENDIX B POLITICAL/LEGAL:
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Indian Government has enacted policies aimed at attaining international competitiveness through lifting of the quantitative restrictions, reducing excise duties, automatic foreign investment and food laws resulting in an environment that fosters growth in the FMCG segment. This initiative has helped HUL in a big way to get a lot of foreign brands into the country. The consumers are in a position to use and appreciate HUL products at an attractive price. The liberalisation 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. Source: Center for Monitoring Indian Economy (2010). http://www.cmie.com/ [Accessed 12/05/2010]

ECONOMIC:
HUL is the Indias largest FMCG player. It creates employment for more than 18 thousand people. Its principal constituents are Household Care, Personal Care and Food & Beverages. Detergents segment of HUL has about 36% market share in that segment (FY 08-09). This segment accounts for at least 40% of the total revenue. HULs market share in detergents segment has declined in the last two years, due to heavy competition on the price front from other players like P&G, Nirma, Ghari and other local players. But the positive is that the volumes grew by 4% in the last quarter. An increase is spending pattern has been witnessed in Indian FMCG market especially the detergent market. There is an upward trend in urban as well as rural market. An increase in disposable income, of household mainly because of increase in nuclear family where both the husband and wife are earning, has lead to growth rate in FMCG goods. Source: Center for Monitoring Indian Economy (2010). http://www.cmie.com/ [Accessed 12/05/2010] Financial Times (2010) http://www.ft.com/ [Accessed on 13/05/2010]
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ECOLOGICAL/PHYSICAL ENVIRONMENT:
HULs significant contribution in saving water through technology is highly appreciated by the Government of India. HUL is striving hard to educate people on aspects of reduction of greenhouse gases. Serving the communities has been integral to HULs business conduct. Rainwater harvesting and soil conservation projects around their factories have made significant impact in these regions. HUL has planned to come up with bio-degradable covers for their detergent brands. HUL is working to promote environmental care, increase understanding of environmental issues and disseminate good practice. A carbon reduction supply-chain project has enabled Hindustan Unilever Limited (HUL) to become the first Unilever business worldwide to be awarded carbon credits under the Clean Development Mechanism (CDM) scheme. Source: Annual report 2008 HUL. http://www.hul.co.in/ [Accessed 13/05/2010]

SOCIAL/CULTURAL:
The size of the detergent market in India is estimated to at Rs.12, 000 Crores. Detergent segment is characterized by high degree of competition and high level of penetration. With rapid urbanization in India, emergence of small pack size and sachets, the demand for the detergents is flourishing.HUL has a major share in this market.

TECHNOLOGICAL:
HUL has research centers in Bangalore and Mumbai which has more than 200 scientists and technologists. HUL R&D is the hub for the best minds. Addressing the washing needs of consumers is a key challenge for the laundry Research group. How to minimize water usage while washing? How to impart stain repellent treatment to garments? These are the questions which have been answered by HUL R&D team. By adding one of a number of anti-foam ingredients commonly used in machine-washing detergents, lather is reduced while rinsing the clothes thus reducing the water consumption by 50%.HUL detergents
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penetrate deep down into fabrics and removes dirt. HUL has separate detergents for TOP loading and FRONT loading washing machines keeping in mind the washing patterns of both the machines. Source: Research and Development 2010 HUL. http://www.hul.co.in/careers-redesign/carreerschoices/researchanddevelopment/ [accessed 13/05/2010]

CORPORATE RESPONSIBILITIES

The Board and the Management Committee of HUL is committed to conduct the company operations in an environmentally sound manner. The Management Committee will: Set mandatory standards and establish environmental improvement objectives and targets for HUL as a whole and for individual units, and ensure these are included in the annual operating plans. Formally review environment performance of the company once every quarter. Review environment performance when visiting units and recognise exemplary performance. Nominate: The Management Committee, through the nominated environmental coordinator will: Ensure implementation of HUL Policy on environment and compliance with Unilever and HUL environmental standards and the standards stipulated under relevant national / local legislation. When believed to be appropriate, apply more stringent criteria than those required by law. Assess environmental impact of HUL operations and establish strategies for sound environment management and key implementation steps. Encourage development of inherently safer and cleaner manufacturing processes to further raise the standards of environment performance.

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Establish appropriate management systems for environment management and ensure regular auditing to verify compliance. Establish systems for appropriate training in implementation of Environment Management Systems at work. Ensure that all employees are made aware of individual and collective responsibilities towards environment. Arrange for expert advice on all aspects of environment management. Participate, wherever possible, with appropriate industry and Government bodies advising on environmental legislation and interact with national and local authorities concerned with protection of environment.

Source: Making a difference 2010 HUL. http://www.hul.co.in/sustainability/MakingaDifference/ [Accessed 21/05/2010]

APPENDIX C COMPETITOR ANALYSIS

Description HUL P&G Nirma
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Strengths

Strong distribution network High spends on Advertisements High Brand value High spends on product development and innovation High on CSR Focus on building a power brand and neglecting other brands Sticking to old strategies for long time

Moderate distribution network High spends on advertising Decent brand value Moderate spends on product development and innovation High on CSR Distribution network not efficient Do not have a country wide presence

Moderate distribution network Low spend on Advertising High brand value Moderate spends on product development and innovation Low on CSR Distribution network not efficient Nirma never projected itself as a Power brand Not enough advertising Large Consumer base Forecast of Detergent market to grow in India Per capita consumption is High Nirma is still in the minds of generation X, Y Price war between competitors Entry of local brands

Weakness

Large Consumer base Forecast of Opportunities Detergent market to grow in India Per capita consumption is High High consumer goods spending Price war between competitors Imitation and me too products

Large Consumer base Forecast of Detergent market to grow in India Per capita consumption is High High consumer goods spending Price war between competitors Imitation and me too products

Threats

Source: Created by Sharath Shyamasunder (2010)

APPENDIX D COMMON SEGMENTATION VARIABLES FOR DETERGENTS OF HUL

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HUL produc t

Category

Variables Benefits sought

Behavioral segmentation

Product usage Occasions Situations Price sensitive Age Gender Income

Examples Quality, Value, Convenience, Heavy , Medium and Light, or Daily use/Weekly Value conscious, Status conscious 18-60 Male/Female Mid income, High income White collared, technical, Professional, Managers, Laborers, Homemakers, Retired, College graduate, Graduate Upper class, Middle class Generation Y,X Baby boomers Outgoing, Shy, Materialistic, Anxious, Civic minded, Venturesome Outdoor Enthusiast, Homely, Workaholic, Family centered Cleaning North, South, East, West Urban, Sub urban ,Rural

Demographic segmentation Surf Excel

Occupation Education Social class Generation

Psychographic segmentation

Personality Lifestyle Motives

Geographic segmentation

Regional City Population

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HUL Product

Category

Variables Benefits sought Product usage Occasions Situations /

Examples Quality, Value, Convenience, Heavy , Medium and Light Daily use/Weekly Price sensitive, conscious 18-60 Male/Female Low income, Mid income, High income White collared, technical, Professional, Laborers, Homemakers, Retired, Unemployed High school, College graduate, Graduate Upper class, Middle class, Lower class, Poverty level Generation Y,X, Laggards Outgoing, Shy, Materialistic, Anxious, Civic minded, Venturesome Outdoor Enthusiast, Homely, Workaholic, Family centered Cleaning North, South, East, West Urban, Sub urban ,Rural Value

Behavioral segmentation

Price sensitive Age Gender Income

RIN

Occupation Education Demographic segmentation Social class Generation

Personality Lifestyle Motives Regional Population

Psychographic segmentation Geographic segmentation

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HUL Product

Category

Variables Benefits sought Product usage Occasions Situations /

Examples Quality, Value, Convenience Heavy , Medium and Light, Daily use/Weekly Price sensitive, conscious Value

Behavioral segmentation

Price sensitive Age Gender Income Occupation Education

18-60 Male/Female Low income, Mid income Laborers, Homemakers, Retired, Unemployed High school, College graduate, Graduate Middle class, Lower class, Poverty level Baby boomers, Laggards Outgoing, Shy, Materialistic, Anxious, Civic minded, Venturesome Outdoor Enthusiast, Homely, Workaholic, Family centered Cleaning

Wheel Demographic segmentation

Social class Generation

Personality Lifestyle Motives

Psychographic segmentation

Geographic segmentation

Regional Population

North, South, East, West Urban, Sub urban ,Rural

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APPENDIX E
HULs mission is 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. It continues to be the market leader in the detergents segment in India. Although in the last four years the volumes have gone down. The Volumes shares grow in Laundry 100 bps in powders and 60 bps in Bars. This is due to their continued innovation to provide quality detergents at affordable prices. Surf Excels formulation has been improved for better stain removal without colour damage. The Rin franchise has emerged as Indias number two detergent brand by value, with particularly good growth in Rin Shakti. Since the competition has intensified significantly, HUL has increased its marketing spend in Media to educate the consumers on the detergents.HUL has strategically invested behind their powerful brands like Surf Excel and Rin. Surf Excels Daag tho acche hain campaign was a runaway hit among the consumers. Aggressive ads for Rin detergent have had a very good impact on the brand. Such creative and aggressive ads have helped HUL to maintain its premium position. The marketing initiatives were supported by major sales initiatives. In rural India, the focus is to further extend reach, which has resulted in direct coverage of about 46% of the rural population as of now. In urban markets, the objective is to improve customer service. Dedicated sales teams have been formed to service key accounts and wholesalers in larger towns and cities. A cell has been set up to attend to the modern trade, comprising chain stores.

DISTRIBUTION AND RETAIL

One of the Major contributors to HULs success is its Supply chain and networks. HUL is able to maintain its market share in the detergent industry because of their strong distribution channel and wide reach across the country.
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HUL ensures that consumers have ready access to their products across every corner of urban and rural India. Their retail and distribution system spreads across the length and breadth of the country. Their distribution network, comprising about 7,000 redistribution stockiest.6.3 million retail outlets reaching the entire urban population, and about 250 million rural consumers.

Fig 3.1 Schematic of the distribution network of HUL Factory

Just in Time Depot Customer Service Provider

Big Box Retailer

Consumer

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Fig 3.2 Regional sales offices across India

Source: HUL (2010). http://www.hul.co.in/ [Accessed 11/05/2010]

With the urban market saturated, 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. 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
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village head and identifies 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-to-door or through petty shops at home. On an average a Shakti Amma makes a 10% margin on the products she sells. The main advantage of the Shakti programme 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. 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. Moreover, men were not liable to go to a womans house and buy products. The company countered this problem by hosting Shakti Days. 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 million homes. The long term aim of the company is to have 100,000 Ammas covering 500,000 villages and reaching 600 m people. HUL has been successful in maintaining its distribution reach advantage over its competitors. This programme will help provide HUL with a growing customer base which will benefit the company for years to come. Source: Annual report 2008 HUL. http://www.hul.co.in/ [Accessed 13/05/2010]

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APPENDIX F
A total of 140 respondents have taken the survey and the results are as follows. Questionnaire Section A: Please choose any one of the options

1. Which detergent do you use for washing clothes?

a. Surf excel b. Ariel c. Wheel d. Rin e. Nirma f. Others (Please specify)

B rand
Surf Excel Ariel Rin Henko Others Wheel

10% 5% 5%

5%

20%

55%

By the graph it is clear that Surf Excel is the most preferred brand.
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2. What is your frequency of buying detergents for washing clothes? a. Daily b. Weekly c. Fortnightly d. Monthly

By the graph below it is seen that people prefer to buy detergents once in a month, and none of the respondents buy it daily.

3. What is the quantity of detergent you buy usually? a. Sachet b. 500 Gm c. 1Kg d. 2kg
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By this graph we can interpret that people prefer to buy 1kg detergent packets. 4. Where do you usually buy the detergent? a. Departmental store nearby b. Super market/ Retail c. Hyper super market d. Door to door sale/ Home delivery

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5. Do you use washing machine for washing clothes or hand wash? a. Washing machine b. Hand wash

6. Which detergent do you use for washing machine? a. b. c. d. e. f. g. Surf excel automatic front load Surf excel automatic top load Ariel Wheel Rin Nirma Others (Please specify)

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7. Are you aware that HUL detergents consume less water while washing clothes? a. Yes b. No

8. Are you satisfied with your detergent? a. Yes b. No

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9. Do you like the fragrance of the clothes after they are washed using your preferred detergent? a. Yes b. No

10. Can you differentiate between a HUL brand of detergents and other brands? A. Yes B. No

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Section B: Please circle your choice in each of the options 10. How do you rate the quality of the detergent? V Poor Surf Excel Ariel Wheel Rin Nirma 1 1 1 1 1 Poor 2 2 2 2 2 Average 3 3 3 3 3 Good 4 4 4 4 4 V Good 5 5 5 5 5
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Others (Please specify)

On an average Surf Excels quality was rated Good. Ariel, Wheel, Rin and Nirma were rated Average. Tide was rated good.

11. How do you rate price of the detergent? V Cheap Surf Excel Ariel Wheel Rin Nirma Others (Please specify) On an Average Surf Excel was rated Costly and all others except Wheel were rated Average. Wheel was rated cheap. 1 1 1 1 1 1 Cheap 2 2 2 2 2 2 Average 3 3 3 3 3 3 Costly 4 4 4 4 4 4 V Costly 5 5 5 5 5 5

12. How do you rate the packaging of the detergent? V Poor Surf Excel Ariel Wheel 1 1 1 Poor 2 2 2 Average 3 3 3 Good 4 4 4 V Good 5 5 5
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Rin Nirma Others (Please specify)

1 1 1

2 2 2

3 3 3

4 4 4

5 5 5

Surprisingly all the detergents except Wheel were rated Good. Wheel was rated Average. Section C 13. What is your gender? (Please tick one) A. Male B. Female Male were 60%, Female 40%, 14. Which age group do you belong? (Please tick one) A. 19 years and below B. 20-29 years old C. 30-39 years old D. 40-49 years old E. 50 years and above ( ) ( ) ( ) ( ) ( ) ( ) ( )

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15. What is your occupation? (Please tick one) A. Student B. Employed C. Retired D. Homemaker ( ) ( ) ( ) ( )

65% of the respondents were students, 20% were employed, and 15% were homemakers.

16. What is your annual Income in Lakhs? (Please tick one) A.1, 50,000.Rs to 2, 50,000.Rs B.2, 50,000.Rs to 3, 50,000.Rs C.3, 50,000.Rs to 5, 00,000.Rs D.5, 00,000.Rs to 6, 50,000.Rs E. 6, 50,000.Rs and Above ( ) ( ) ( ) ( ) ( )

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17. Which product does HUL needs to include in their portfolio of detergents? Please fill the blank ___________________ 70% of the respondents felt that HUL should include the Insta-whitener Liquid and 45% of respondents wanted liquid detergent.

APPENDIX G
Zero is the amount of inventory HUL's distributors currently hold in Mumbai, and the amount of inventory that distributors in the 42 major urban centers will hold. Zero is also the percentage of stock damaged in transit from the company depots to the retailers in Mumbai. Given that both these statistics are a rarity, if not a completely anomaly not only in India but also globally, it's not surprising that the company is happy about hitting zero with such regularity.

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The 'Go To Market' (GTM) initiative was born out of a range of factors. "The marketplace, as we know it, is changing with the evolution of modern trade. As a result, the throughput from general trade is going down in certain markets, affecting the distributor's business. All HUL salesmen now use handheld terminals on which they book replenishment orders from retailers. Once they come back to the distributor, this data is synced in with the system at HUL. Accordingly, the next the clearing and forwarding agents sends the stock to the respective distributor who in turn sends it to the retailer. Now distributors hold no inventory. For the consumer too, as a result of the increased efficiency, the likelihood of finding the required product in the shop when they visit it increases. Source: Sangani, P. Economic Times (2009), The Zero Effect Pg no 3.

APPENDIX H
HINDUSTAN UNILEVER LIMITED (HUL) LEADING CONSUMER GOODS COMPANY FULFILS BUSINESS OPTIMISATION GOALS WITH SAP (FMCG) industry is an unforgiving one. If a retailers shelves are empty of a manufacturers product, he will simply fill them with a competing product, This challenge of ensuring that the business is optimised to cater to everchanging market demands is an issue that HUL is deeply familiar with. Behind HULs vast business
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footprint that spans 4,000 distributors is an entity consisting of 15,000 staff as well as multiple factories, warehouses and branches. It is not easy keeping its house in order but it found a perfect solution to its business management needs with SAP. HUL knew that business optimization and supply chain efficiency cannot be achieved without tight communication links with its external business partners. However, the task of ensuring seamless connectivity between its IT systems with that of its distributors was not an easy one. In a distributed general trade environment, HUL has implemented a standard distributor management system. To cover the extended supply chain, the distributor operations needed to be tightly integrated with its internal ERP solutions. This system is functioning well; HUL wants to preserve its investment in this area. This meant that the new ERP solution must be able to integrate with this back-office application too, so that HUL can continue to leverage and maximize it well into the future. Source: Success stories of SAP www.sap.com/india/about/company/successes/pdfs/HUL.pdf [Accessed on 20/05/2010]

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