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CONTENTS

1.

2.

Introduction About Project

Introduction

07-11

Objectives of study

12

Scope of project

13

Company profile

14-67

History of Company

14-26

Corporate profile

27-45

Products profile

46-65

Distribution system

66-67

3.

Research methodology

68-69

4.

Collection of data

70-72

5.

Data analysis

73-76

6.

Findings

77

7.

Conclusions

78

8.

Recommendations and suggestions

79

9.

Annexure

80-82

10.

Bibliography

83

CHAPTER - 1
1. INTRODUCTION TO SOAP
1.1 SOAPS
Soaps are useful for cleaning because soap molecules have both a hydrophilic end, which dissolves in
water, as well as a hydrophobic end, which is able to dissolve nonpolar grease molecules. Although grease
will normally adhere to skin or clothing, the soap molecules can form micelles which surround the grease
particles and allow them to be dissolved in water. The hydrophobic portion (made up of a long
hydrocarbon chain) dissolves dirt and oils, while the ionic end dissolves in water. Therefore, it allows
water to remove normally-insoluble matter by emulsification.

1.2 SOAP HISTORY


Traditionally, soap has been manufactured from alkali (lye) and animal fats (tallow), although vegetable
products such as palm oil and coconut oil can be substituted for tallow. American colonists had both
major ingredients of soap in abundance and so soap making began in America during the earliest colonial
days. Tallow came as a by-product of slaughtering animals for meat, or from whaling. Farmers produced
alkali as a by-product of clearing their land; until the nineteenth century wood ashes served as the major
source of lye. The soap manufacturing process was simple, and most farmers could thus make their own
soap at home.

The major uses for soap were in the household, for washing clothes and for toilet soap, and in textile
manufacturing, particularly for fulling, cleansing, and scouring woolen stuffs. Because colonial America
was rural, soap making remained widely dispersed, and no large producers emerged.

The growth of cities and the textile industry in the early nineteenth century increased soap usage and
stimulated the rise of soapmaking firms. By 1840, Cincinnati, then the largest meatpacking center in the
United States, had become the leading soap-making city as well. The city boasted at least seventeen soap
factories, including Procter and Gamble (established 1837), which was destined to become the nation's

dominant firm. A major change in soap making occurred in the 1840s when manufacturers began to
replace lye made from wood ashes with soda ash, a lye made through a chemical process. Almost all soap
makers also produced tallow candles, which for many was their major business. The firms made soap in
enormous slabs, and these were sold to grocers, who sliced the product like cheese for individual
consumers. There were no brands, no advertising was directed at consumers, and most soap factories
remained small before the Civil War.

The period between the end of the Civil War and 1900 brought major changes to the soap industry. The
market for candles diminished sharply, and soap makers discontinued that business. At the same time,
competition rose. Many soap makers began to brand their products and to introduce new varieties of toilet
soap made with such exotic ingredients as palm oil and coconut oil. Advertising, at first modest but
constantly increasing, became the major innovation. In 1893 Procter and Gamble spent $125,000 to
promote Ivory soap, and by 1905 the sales budget for that product alone exceeded $400,000. Advertising
proved amazingly effective.

In 1900 soap makers concentrated their advertising in newspapers but also advertised in streetcars and
trains. Quick to recognize the communications revolution, the soap industry pioneered in radio
advertising, particularly by developing daytime serial dramas. Procter and Gamble originated Ma Perkins,
one of the earliest, most successful, and most long-lived of the genre that came to be known as Soap
Operas, to advertise its Oxydol soap in 1933. By 1962 major soap firms spent approximately $250 million
per year for advertising, of which 90 percent was television advertising. In 1966, three out of the top five
television advertisers were soap makers, and Procter and Gamble was television's biggest sponsor,
spending $161 million. Advertising put large soap makers at a competitive advantage, and by the late
1920s three firms had come to dominate the industry:

(1) Colgate-Palmolive-Peet, incorporated as such in 1928 in New York State, although originally founded
by William Colgate in 1807;

(2) Lever Brothers, an English company that developed a full line of heavily advertised soaps in the
nineteenth century and in 1897 and 1899 purchased factories in Boston and Philadelphia; and

(3) Procter and Gamble. In 1940 the "big three"Colgate, Lever, and Procter and Gamble controlled
about 75 percent of the soap market.
The following ingredients are often used in hand dishwashing soaps and detergents; not all products
contain all ingredients.

1.3 INGREDIENTS OF SOAP


Cleaning Agents/Surfactants lift dirt and soil and produce good grease-cutting capability.
Stability and Dispensing Aids keep the product consistent under varying storage conditions
and provide desirable dispensing characteristics.
Mildness Additives may include moisturizing agents, certain oils and emollients, certain
protein compounds, or other neutralizing or beneficial ingredients.
Fragrance is added to produce a pleasant or distinctive scent.
Preservatives help prevent any microbiological growth in the product that could cause color
or odor change, poor performance and/or separation of the ingredients.
Colorants are added to lend individuality and an appealing appearance to the product.
Enzymes help break down tough stains and burned-on soils.
Encapsulates deliver stability for special materials/additives (e.g., moisturizer or fragrance).

2. SOAP INDUSTRY IN INDIA


2.1 Soap Category in India
Soap is a product that many people might take for granted or consider rather ordinary, but for some,
lathering

up

can

be

treasured

part

of

morning

or

nightly

routine.

Scented or unscented, in bars, gels, and liquids, soap is a part of our daily lives. In the United States, soap
is a $1.390 million (US$)* industry with over 50 mass market brands. But in some markets the sales
potential for soap is only beginning to be realized. At the end 2000, soap was a $1.032 million (US$)*
business in India. IFF's marketing experts offer the following overview of this growing category.

In India, soaps are available in five million retail stores, out of which, 3.75 million retail stores are in the
rural areas. Therefore, availability of these products is not an issue. 70% of India's population resides in
the rural areas; hence around 50% of the soaps are sold in the rural markets

2.2 Overview of the Indian Soap Category


India is a vast country with a population of 1,030 million people. Household penetration of soaps is 98%.
People belonging to different income levels use different brands, which fall under different segments, but
all income levels use soaps, making it the second largest category in India (detergents are number one).
Rural consumers in India constitute 70% of the population. Rural demand is growing, with more and
more soap brands being launched in the discount segment targeting the lower socio-economic strata of
consumers.

2.3 History of Soap in India


During the British rule in India, Lever Brothers England introduced modern soaps by importing and
marketing them in India. However, North West Soap Company created the first soap manufacturing plant
in India, which was situated in the city of Meerut, in the state of Uttar Pradesh. In 1897, they started
marketing cold process soaps.* During World War I, the soap industry floundered, but after the war, the
industry flourished all over the country.

Mr. Jamshedji Tata set up India's first indigenous soap manufacturing unit when he purchased OK
Coconut Oil Mills at Cochin Kerala around 1918. OK Mills crushed and marketed coconut oil for cooking
and manufactured crude cold process laundry soaps that were sold locally. It was renamed The Tata Oil
Mills Company and its first branded soaps appeared on the market in the early 1930s. Soap became a
necessity for the moneyed class by around 1937.

*Cold process soaps are manufactured by mixing all ingredients (soap base, perfume, fillers, actives, etc.)
in a large pot and heating them up to 70 degrees while they are stirred manually. Once the mixture is
ready, the soap is plodded based on its size with the logo by a machine. In a machine made soap, the
mixing process is called milling and this is done by a rotary operated machine and not manually.

2.4 Brand Positioning Then and Now

Soap manufacturers originally targeted their products to the lowest income strata in urban as well as rural
areas, positioning their brands as a way to remove dirt and clean the body. For some brands, that
positioning persists even today with a focus on removal of body odor and keeping the user healthy.
However, soap positionings are moving towards skin care as a value-added benefit.

2.5 Consumer Use Today

Toilet soaps are always used in the bar formthere is no other form in the Indian marketand they are
used in the bath. Showers are a distant dream for 70% of Indias population, who live in the villages
where there is not even a regular supply of drinking water. In the urban areas, people bathe by using a
bucket of water, mug, and a bar of soap. In villages, they usually bathe by the river bank or village ponds.
Although most of the urban houses have a shower facility, showers are seldom used because of the
scarcity of water.

With increase in disposable incomes, growth in rural demand is increasing because consumers are moving
up towards premium products. However, in the recent past there has not been much change in the volume
of premium soaps in proportion to economy soaps, because increase in prices has led some consumers to
look for cheaper substitutes.

2.6 Consumer Preferences

Consumer preferences are varied and are more regionally specific. India is divided into four regions:
North, East, West, and South.
Consumers in the North prefer pink colored soaps, which have floral profiles. Here the fragrance

preference is for more sophisticated profiles reflecting their lifestyles. Freshness soaps with lime
and citrus notes are also popular preferences as the climate in the North is very hot and
citrus/lime scented soaps are seen to be refreshing.
The East is not a big soap market; hence no particular preference skews.
Consumers in the West exhibit preferences for strong, impactful fragrances and somewhat

harsher profiles compared to the North. Preferences are more for the pink soaps with floral
fragrances, primarily rose, which are positioned on the beauty platform.
In the South, the skew is towards specific soap segments like the Herbal/Ayurvedic profiles and

also the Sandal profiles. Consumers here do not exhibit high brand loyalty and are ready to
experiment and try out new brands. Hence, most fast moving consumer goods companies tend to
launch their new brands in these markets, which they call test launch markets.

3. MARKETING OF SOAP
Soap is primarily targeted towards women, as they are the chief decision-makers in terms of soap
purchase. Medicated positionings like germ killing and anti-bacterial are marketed to families. About 75%
of soap can be bought through these different types of outlets:

3.1 Kirana Store:


This is the most common source for buying soap, which usually forms a part of the months
grocery list (which is purchased from these Kirana Stores). Consumers exhibit loyalty to these
stores, which is largely dependent on proximity to consumers homes. Here consumers buy across
the counter and do not have an option of browsing through display shelves.

3.2 Pan-Beedi Shops:


These are really small shops, almost like handcarts, and they are primarily set up to dispense
cigarettes and chewing tobacco. However, one would find such a shop at every corner and they
are the main sources of soap purchase for the lower socio-economic classes. These kinds of shops
exist

by

the

dozen

in

rural

areas.

3.3 Department Store:


In India, there are very few department stores and the Indianised version of department stores
are called Sahakari Bhandars. It is still a fairly new concept. However, department stores have
good display counters and this is the only place where consumers get a first hand experience of
shopping and choosing from available options. Here soap prices are also discounted below the
retail prices.

OBJECTIVE OF THE STUDY


OBJECTIVES
To study consumer preference towards Lifeboy Soap in India.
To understand the distribution systems and processes of marketing.
To evaluate distribution strength of competitors in the geography under
command and help to make the HUL Ltd presence better in the market.
To find out expansion area of the HUL Ltd products

SCOPE OF THE PROJECT


Working with the DS (Dealer Salesman) in the market on different routes to
gain an understanding of the order capture and delivery processes.
Working with the TSI (Territory Sales Incharge) in the market to understand
the Premium Grocery and Chemist Structure and the merchandizing
solutions implemented by HUL Ltd in the market.
Gaining the understanding of the various benefits of HUL Ltd personal care
products and their unique selling proposition vis--vis competition products
and use these for effective sell-in.
Being up to date with HUL Ltd and competition offering and use the
advantages on hand for better sell-in.

CHAPTER - 2
COMPANY PROFILE
HISTORY
Over 100 years' link with India
Chronology
In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight soap bars,
embossed with the words "Made in England by Lever Brothers". With it, began an era of
marketing branded Fast Moving Consumer Goods (FMCG).
Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim.
Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937.
In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing
Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935).
These three companies merged to form HUL in November 1956; HUL offered 10% of its equity
to the Indian public, being the first among the foreign subsidiaries to do so. Unilever now holds
52.10% equity in the company. The rest of the shareholding is distributed among about 360,675
individual shareholders and financial institutions.
The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the company had
launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was formed.
Brooke Bond joined the Unilever fold in 1984 through an international acquisition. The erstwhile

Lipton's links with India were forged in 1898. Unilever acquired Lipton in 1972, and in 1977
Lipton Tea (India) Limited was incorporated.
Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold through
an international acquisition of Chesebrough Pond's USA in 1986.
Since the very early years, HUL has vigorously responded to the stimulus of economic growth.
The growth process has been accompanied by judicious diversification, always in line with
Indian opinions and aspirations.
The 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.
Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the most
visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills Company
(TOMCO) merged with HUL, effective from April 1, 1993. In 1995, HUL and yet another Tata
company, Lakme Limited, formed a 50:50 joint venture, Lakme Unilever Limited, to market
Lakme's market-leading cosmetics and other appropriate products of both the companies.
Subsequently in 1998, Lakme Limited sold its brands to HUL and divested its 50% stake in the
joint venture to the company.
HUL Ltd formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994,
Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary Pads. HUL has
also set up a subsidiary in Nepal, Unilever Nepal Limited (UNL), and its factory represents the
largest manufacturing investment in the Himalayan kingdom. The UNL factory manufactures

HUL's products like Soaps, Detergents and Personal Products both for the domestic market and
exports to India.
The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on the Foods and
Beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with
significant interests in Instant Coffee. In 1993, it acquired the Kissan business from the UB
Group and the Dollops Icecream business from Cadbury India.
As a measure of backward integration, Tea Estates and Doom Dooma, two plantation companies
of Unilever, were merged with Brooke Bond. Then in July 1993, Brooke Bond India and Lipton
India merged to form Brooke Bond Lipton India Limited (BBLIL), enabling greater focus and
ensuring synergy in the traditional Beverages business. 1994 witnessed BBLIL launching the
Wall's range of Frozen Desserts. By the end of the year, the company entered into a strategic
alliance with the Kwality Icecream Group families and in 1995 the Milkfood 100% Icecream
marketing and distribution rights too were acquired.
Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal restructuring
culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998. The two companies
had significant overlaps in Personal Products, Speciality Chemicals and Exports businesses,
besides a common distribution system since 1993 for Personal Products. The two also had a
common management pool and a technology base. The amalgamation was done to ensure for the
Group, benefits from scale economies both in domestic and export markets and enable it to fund
investments required for aggressively building new categories.
In January 2000, in a historic step, the government decided to award 74 per cent equity in
Modern Foods to HUL, thereby beginning the divestment of government equity in public sector
undertakings (PSU) to private sector partners. HUL's entry into Bread is a strategic extension of

the company's wheat business. In 2002, HUL Ltd acquired the government's remaining stake in
Modern Foods.
In 2003, HUL Ltd acquired the Cooked Shrimp and Pasteurised Crabmeat business of the
Amalgam Group of Companies, a leader in value added Marine Products exports.
Hindustan Uni lever Limited (HULL) supplies high quality goods and services to meet the daily
needs of consumers and industry. In doing so, the Company is committed to exhibit the highest
standards of corporate behaviour towards its consumers, employees, the societies and the world
in which we live.
The company recognises its joint responsibility with the Government and the Public to protect
environment and is committed to regulate all its activities so as to follow best practicable means
for minimising adverse environmental impact arising out of its operations.
The company is committed to making its products environmentally acceptable, on a scientifically
established basis, while fulfilling consumers' requirements for excellent quality, performance and
safety.
The aim of the Policy is to do all that is reasonably practicable to prevent or minimise,
encompassing all available knowledge and information, the risk of an adverse environmental
impact arising from processing of the product, its use or foreseeable misuse.
This Policy document reflects the continuing commitment of the Board for sound Environment
Management of its operations. The Policy applies to development of a process, product and
services, from research to full-scale operation. It is applicable to all company operations
covering its plantations, manufacturing, sales and distribution, research & innovation centres and

offices. This document defines the aims and scope of the Policy as well as responsibilities for the
achievement of the objectives laid down.

THE VISION
Our vision is to continue to be an environmentally responsible organisation making continuous
improvements in the management of the environmental impact of our operations.
We will achieve this through an Integrated Environment Management approach, which focuses
on People, Technology and Facilities, supported by Management Commitment as the prime
driver.

THE ENVIRONMENT POLICY


Hindustan Uni lever Ltd. (HULL) is committed to meeting the needs of customers and
consumers in an environmentally sound manner, through continuous improvement in
environmental performance in all our activities. Management at all levels, jointly with
employees, is responsible and will be held accountable for company's environmental
performance.

Accordingly, HUL Ltd aims are to:


Ensure safety of its products and operations for the environment by using standards of
environmental safety, which are scientifically sustainable and commonly acceptable.

Develop, introduce and maintain environmental management systems across the company to
meet the company standards as well as statutory requirements for environment. Verify
compliance with these standards through regular auditing.
Assess environmental impact of all its activities and set annual improvement objectives and
targets and review these to ensure that these are being met at the individual unit and corporate
levels.
Reduce Waste, conserve Energy and explore opportunities for reuse and recycle.
Involve all employees in the implementation of this Policy and provide appropriate training.
Provide for dissemination of information to employees on environmental objectives and
performance through suitable communication networks.

Encourage suppliers and co-packers to develop and employ environmentally superior

processes and ingredients and co-operate with other members of the supply chain to improve
overall environmental performance.

Work in partnership with external bodies and Government agencies to promote

environmental care, increase understanding of environmental issues and disseminate good


practice.

RESPONSIBILITIES
Corporate
The Board and the Management Committee of HUL Ltd 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 Ltd 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:
- A senior line manager responsible for environmental performance at the individual HULL site.
- HUL Ltd environmental coordinator.
The Management Committee, through the nominated environmental coordinator will:
Ensure implementation of HUL Ltd Policy on environment and compliance with Uni lever
and HUL Ltd 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 Ltd 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.
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.

INDIVIDUAL UNITS
The overall responsibility for environment management at each unit will rest with the Unit Head,
who will ensure implementation of HUL Ltd Policy on environment at unit level. Concerned line
managers / heads of departments are responsible for environmental performance at department
levels.

In order to fulfill the requirements of the Environment Policy at each site, the Unit Head will:

Designate a unit environment coordinator who will be responsible for co-ordinating

environmental activities at unit, collating environmental statistics and providing / arranging for
expert advice.

Agree with the Management Committee Member responsible for the unit, specific

environmental improvement objectives and targets for the unit and ensure that these are
incorporated in the annual objectives of the concerned managers and officers and are reviewed
periodically.
Ensure that the unit complies with Uni lever and HUL Ltd mandatory standards and the
relevant national and state regulations with respect to environment.
Ensure formal environmental risk assessment to identify associated environmental aspects
and take appropriate steps to control risks at acceptable levels.
Ensure that all new operations are subjected to a systematic and formal analysis to assess
environmental impact. Findings of such exercises should be implemented prior to
commencement of the activity.
Manage change in People, Technology and Facilities through a planned approach based on
training, risk assessment, pre-commissioning audits and adherence to design codes.
Regularly review environment performance of the unit against set objectives and targets and
strive for continual improvement.
Sustain a high degree of environmental awareness through regular promotional campaigns
and employee participation through training, safety committees, emergency drills etc.
Ensure dissemination of relevant information on environment within the unit and to outside
bodies, and regularly interact with Government authorities concerned for protection of
environment.

Maintain appropriate emergency procedures consistent with available technologies to prevent


control environmental incidents.
Provide appropriate training to all employees.
Ensure periodic audits to verify compliance with environment management systems and
personally carry out sample environment audits to check efficacy of the systems.
Report environmental statistics to HUL Ltd Corporate Safety & Environment Group on a
monthly basis.

Research and Innovation Centres


Since most new products and processes are developed in these Units, certain additional
responsibilities devolve on them to ensure implementation of the Environment Policy of the
company. In addition to the Unit Head's responsibilities outlined above, the heads of these units
will:
Ensure that a formal and systematic risk assessment exercise is undertaken during the
process/product development stage with specific reference to environmental impact.
Transfer technology to the pilot plant and main production through a properly documented
process specification which will clearly define environmental impact and risks associated with
processes, products, raw material and finished product handling, transport and storage.
Ensure that treatment techniques are developed for any wastes generated as a result of the
new product/process and is incorporated into the process specifications.

MANAGEMENT TEAM

Hindustan Uni Lever Limited is India's largest Fast Moving Consumer Goods (FMCG) company.
It is present in Home & Personal Care and Foods & Beverages categories. HUL Ltd and Group
companies have about 15,000 employees, including 1200 managers.
The fundamental principle determining the organisation structure is to infuse speed and
flexibility in decision-making and implementation, with empowered managers across the
companys nationwide operations.

BOARD
The Board of Directors as repositories of the corporate powers act as a guardian to the Company
as also the protectors of shareholders interest.
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.

MANAGEMENT COMMITTEE
The day-to-day management of affairs of the Company is vested with the Management
Committee which is subjected to the overall superintendence and control of the Board. The
Management Committee is headed by Mr. Nitin Paranjpe and has functional heads as its
members representing various functions of the Company

Mr. Nitin Paranjpe


Mr. R. Sridhar
Chief Executive Officer
Chief Financial Officer
and Managing Director

Mr. Shreejit Mishra

Mr. Gopal Vittal

Executive Director

Executive Director

Foods

Home & Personal Care

Mr. Hemant Bakshi


Mr. Dhaval Buch
Executive Director
Executive Director
Sales and Customer
Supply Chain
Development

Mr. Ashok Gupta

Ms Leena Nair

Executive Director

Executive Director

Legal

HR.

HUL Ltd CORPORATE PROFILE


Hindustan Uni Lever Limited (abbreviated to HULL) formerly Hindustan Lever Limited, is
Indias largest consumer products company and has an annual turnover of over Rs 13,000 crores
(calendar year 2007). It was formed in 1933 as Lever Brothers India Limited and came into
being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan
Vanaspati Mfg. Co. Ltd. and United Traders Ltd.. It is headquartered in Mumbai, India and has
an employee strength of over 15,000 employees and contributes for indirect employment of over
52,000 people. The company was renamed in late June 2007 to Hindustan Unilever Limited.
In 2007, Hindustan Unilever was rated as the most respected company in India for the past 25
years by Business World, one of Indias leading business magazines [2]. The rating was based on a
compilation of the magazines annual survey of Indias Most Reputed Companies over the past 25
years. HUL is the market leader in Indian consumer products with presence in over 20 consumer
categories such as Soaps, Tea, Detergents and Personal care products amongst others with over
700 million Indian consumers using its products. It has over 35 brands. Sixteen of HULs brands
featured in the AC Nielsen-Brand Equity list of 100 Most Trusted Brands Annual Survey (2008)
[3]

. According to Brand Equity, HUL has the largest number of brands in the Most Trusted Brands

List. Its a company that has consistently had the largest number of brands in the Top 50 and in
the Top 10 (with 4 brands).
Hindustan Unilever distribution covers over 1 million retails outlets across India directly and its
products are available in over 6.3 million outlets in India, i.e. nearly 80% of the retail outlets in
India. It has 39 factories in the country. Two out of three Indians use the companys products and

HUL products have the largest consumer reach being available in over 80 per cent of consumer
homes across India.
The Anglo-Dutch company Unilever owns a majority stake (52%) in Hindustan Unilever
Limited. HUL was one of the eight Indian companies to be featured on the Forbes list of Worlds
Most Reputed companies in 2007 [4].

INTRODUCTION ABOUT COMPANYS CORPORATE PROFILE


Hindustan Uni Lever Limited (HULL) supplies high quality goods and services to meet the daily
needs of consumers and customers. In doing so, the Company is committed to exhibit the highest
standards of corporate behavior towards its consumers, employees, the societies and the
environment in which we operate.
Towards this, the Company recognises its responsibility to ensure safety and protection of health
of its employees, contractors and visitors in all its operating sites, which include manufacturing,
sales and distribution, research laboratories and offices during work and work related travel.
This Policy document defines the vision, principles, aim, required actions and scope of the policy
application as well as the responsibility for execution.

OUR VISION
Our vision is to be an injury free organisation
OUR MISSION
We will bring safety on top of mind for all employees and will integrate it with all business
processes. We will realise our Vision through an Integrated Safety Management approach, which
focuses on People, Processes, Systems, Technology and Facilities, supported by demonstrated
leadership and employee commitment at all levels as the prime drivers for ensuring a safe and
healthy work environment.

SAFETY PRINCIPLES
HUL Ltd Occupational Safety and Health Policy is based on and supported by the following
eight Principles.
These Principles have the same status as the Company's Code of Business Principles:
All injuries and occupational illnesses are preventable
All operational exposures can be safeguarded
Safety evaluation of all business processes is vital
Working safely is a condition of employment
Training all employees to work safely is essential
Management audits are a must
Employee involvement is essential
All deficiencies must be reported and corrected promptly

Note: In order to facilitate operationalisation of the Safety Principles, a separate document has
been prepared, which covers:
a) Safety Principles
b) Success Criteria
c) Illustrative KPI
This document will form the basis for the concerned Line / Organisations in developing KPI's for
their respective functions / sites.

SCOPE OF APPLICATION
This section defines the scope of application of this Policy (where, when and to whom is this
Policy applicable).

WHERE DOES THIS APPLY?


All own/leased sites Manufacturing, Research/Innovation, Offices, Depots, Warehouses
In-house purchased services i.e. canteen, travel desk, IT implementation etc.
Sites of associates with HUL holding > 24% while carrying out operations of making,
handling,

using,

transporting,

selling

or

disposing

WHO DOES THE POLICY APPLY TO?


All employees at business anywhere
Contractors and visitors while at our own sites

WHEN DOES IT APPLY?


At work (our employees, contractors and visitors)
Travel between home and work of our employees
Business related travel including stay out of headquarter

off

of

our

products

All Company organised business events i.e. training programmes, conferences, business
related get-togethers, annual sports etc.

POLICY ON AFFIRMATIVE ACTION


Hindustan Unilever Limited is a signatory to the CII Code of Conduct on Affirmative Action and
affirms the recognition that its competitiveness is interlinked with the well being of all sections
of

the

Indian Society.

The Company believes that equal opportunity in employment for all sections of the society is a
component of its growth and competitiveness. It further believes that inclusive growth is a
component

of

growth

and

development

of

the

country.

The Company affirms the recognition that diversity to reflect socially disadvantaged sections of
the

society

in

the

workplace

has

positive

impact

on

business.

The Company does not practice nor support conscious discrimination in any form.
HUL does not bias employment away from applicants belonging to disadvantaged sections of
society if such applicants possess competitive skills and job credentials as made public.
The Companys selection of business partners is not based on any considerations other than
normal business parameters. In case of equal business offers, the Company will select a business
partner belonging to a socially disadvantaged section of society.
The Company has a written policy statement on Affirmative Action in the workplace.
The Company has an employment policy that is in the public domain. It will place such policies
and employment opportunities on its website to encourage applications from socially
disadvantaged sections of society.
The Company makes all efforts for upskilling and continual training of employees from socially
disadvantaged sections of society in order to enhance their capabilities and competitive skills.
The Company has a partnership programme with educational institutions to support and aid
students from socially disadvantaged sections of society.
The Executive Director, Human Resources is accountable to the CEO to oversee and promote its
Affirmative Action policies and programmes. The ED HR will present a biannual report to the

Board

of

the

Company

about

such

policies

and

programmes.

The Company further maintains records on Affirmative Action.


The Company makes available its learning and experiences as a good corporate citizen in
Affirmative Action to other companies desiring to incorporate such policies in their own
business.

QUALITY IS FUNDAMENTAL TO OUR BUSINESS SUCCESS


Unilevers mission is to meet everyday needs for nutrition, hygiene and personal care with
brands that help people feel good, look good and get more out of life. And a key requirement is
building in the quality expectations of our consumers into our products.
To win consumers confidence and loyalty, we need to consistently deliver branded products of
excellent quality. We understand the different needs of our consumers and customers and strive
to develop and deliver superior brands to ensure that theyre the preferred choice. And by
applying consistently high standards, were able to do things right first time, cut waste, reduce
costs

and

drive profitability.

Our Quality Policy describes the principles that everyone in Unilever follows, wherever they are
in the world, to ensure that we are recognised and trusted for our integrity, the quality of our
brands and

products,

and

the

high

standards

we

set.

PRINCIPLES OF QUALITY POLICY


Putting the safety of our products and our consumers first.
We have stringent mandatory quality standards in place against which compliance is verified
through regular audits and self assessments. These standards ensure we design, manufacture and
supply products that are safe, of excellent quality, and conform to the relevant industry and
regulatory standards in the countries in which we operate. Comprehensive management
procedures are in place to mitigate risks and to protect our consumers and markets.

Putting consumers and customers at the heart of our business


We actively engage our consumers and customers, translating their needs and requirements into
our products and services, thus creating consumer value wherever we position our products. This
is

at

the

very

heart

of

our

innovation

process.

Quality is a shared responsibility


Quality and consumer safety is the responsibility of every Unilever employee and Unilever
demonstrates visible and consistent leadership to meet this policy. The drive for quality, in all
that we do, is a passion reflected in our brand development, manufacturing and customer service
processes and is also expected of our business partners. We partner with stakeholders to provide
leadership, promote transparency and share best practice. And weve forged effective working
relationships with suppliers and contract manufacturers.

Building and maintaining excellent systems to ensure the quality and safety
of our products
Were proactively and continuously developing our systems and processes to ensure quality and
safety throughout the whole value chain, and were setting a benchmark for the business. We
provide appropriate training and resources, and will ensure that we deliver our quality objectives
and targets. We regularly measure and improve our performance using both internal and external
measures.
We actively promote our Quality Policy and have a quality assurance organisation in place to

ensure consistency and visibility of quality standards, processes and performance indicators
across all Unilever businesses at all levels, and to anticipate and develop future quality capability
requirements.

THE SIGNIFICANCE OF PR IN HUL Ltd


It may be useful to begin by first getting out of the way certain popular notions which, as with
many popular beliefs are either without any basis in reality or at best express only half truths.
For instance, PR men are regarded by some to be fixers, a breed of people who will wangle
things for you by the most questionable methods. There is also a popular idea that PR men spend
most of their time winning and dining, using for the purpose fabulous expense accounts they are
supposed to have access to. While no one can prevent a charlatan from posing as a PR man or
styling himself as a PR consultant he is no more a tine practitioner of PR than a quack selling
magic remedies by the wayside is a physician. How deep-seated such popular misconceptions
about PR can be reflected by the fact the even now one comes across articles published in wellknown papers and journals airing such naive ideas about PR
Again, PR is sometimes confused with publicity. Publicity is certainly one of the instruments of
PR but is would be as wrong to equate publicity with PR just as it would be to equate the
stethoscope with the practice of modern medicine.

To continue the analogy, PR seeks to

diagnose the ills of an organisation in its relations with the public or any segment of the public, it
prescribes remedies and proceeds to administer them. It then keeps a watch on the patient to see
whether the remedies prescribed are producing the desired effect so that the medicine can be
changed if necessary after evaluating the results. Again, as in medicine prevention is considered
more important than the cure, PR believes in maintaining the good health of the corporate body
-so that drastic remedies and bitter pills may not have to be swallowed later.
Analogies may be useful in giving a general idea but can never be as precise as a definition. PR
which is now a well-established discipline therefore needs to be defined so that we may be clear
about what we are discussing when we talk about PR. It is the attempt by information,
persuasion and adjustment to engineer public support for an activity, cause movement or
institution. Public relations as and applied social and behavioral science is that function which measures, evaluates and interprets the attitudes objectives for increasing public understanding

and acceptance of the organizations products, plans, policies and personnel; equates these
objectives with the interests, needs and goals of the various relevant publics; and develops,
executes and evaluates a programme to earn public understanding and acceptance.

AN OVERVIEW
Public relations today are still a very underdeveloped field. It is growing in prominence and has
started showing results in various sectors of corporate India. More and more companies are
making use of PR to solve their problems and increase their overall corporate equity. The entire
process needs a closer look.
To gauge the effectiveness of PR in HUL Ltd over the last decade it is necessary to examine its
function and overall areas of applicability.
Social Responsibility of Business and Introduction
The need for PR arises also from the responsibility that an organisation owes to the society,
which nurtures it and enables it to function and operate. No organisation, leave aside a modern
business organisation, can function in a vacuum. It flourishes only because a particular kind of
social environment exists. This environment is often taken for granted but in times of social
turmoil when normal conditions are disrupted the dependence of the organisation on the social
environment is brought home sharply. How often have we not seen during periods of national
strife or serious political instability leading to a break down of law and order that business comes
to a standstill? While these may be extreme examples they illustrate the fact that without the
right social environment no business can exist. Thus every business organisation has a stake in
the social environment and must contribute its mite towards its continued existence and
improvement.
A business organisations responsibilities to society cover a wide area. They range from its
responsibility to supply quality products at a reasonable price and to ensure that it reaches the
consumer at the right time and place to its responsibility to contribute to the development of the
Infrastructure, to the realization of national objectives and to the identification of its interest
with the vast population of the country in which it operates.

The world over business

organisation which are forward looking and farsighted are trying to make a contribution to social

causes apart from achieving their immediate and ultimate ends of producing goods for sale and
marketing them at a profit.

Such contributions can range from grants to universities,

scholarships of various kinds, aid to hospitals and charitable institutions to actual involvement in
projects of social significance. An organisation in the USA sponsored a research fellowship to
discuss the causes of student unrest and to find solutions to the problems of tension in the
campuses.

In India too there are business organizations, which are aware of their social

responsibility and have made an effort to discharge it in accordance with their resources and the
needs of the situation. Studies on the extent of industrial pollution and ways and means of
combating it, Involvement in family planning programmes, development of low cost nutritious
food for the poorer sections of the people, studies on the causes of a States decline and the steps
needed to restore it to health are some examples of social responsibility in corporate behaviour as
practiced in India in recent years. But there is little doubt that instances of such conduct are few
indeed in relation to the enormity of the problems facing a country as vast as India with a
burgeoning population a large part of it living below the poverty line.
PR and Environmental Path of HULL
The present generation has, quite understandably, made the environment a focus of attention.
With growing environmental awareness, there is now a clear perception that our activities affect
not only the air we breathe, but even the air which regulates our climate. More importantly,
uncontrolled activities cannot be sustained without loss of plant and species, natural habitats,
coast and hinterland and the decay of buildings, places of natural beauty or historic interest.
Hence, the need for a genuine commitment to sustainable development which is integrated with
the national policy on industry, energy, transport, trading and planning.
In the above context, public relations professionals are well placed to direct attention to
environmental issues and can make a unique contribution to public and professional debate, and
to environmental education. In fact PR has to live up to its environment education. In fact PR has
to live up to its environmental responsibilities even when clear, universally agreed targets are
still lacking in many issues. The responsible PR person must ensure that his organisation is
greener than green on all the major issues according to current opinion, demonstrate to the world
at large that this is so, and, for the future, help form opinions and set the standards for the
organisations own as well as the common good.

In a nutshell, environment is now a corporate concern and todays PR persons have to build up
comprehensive communication programmes, internal as well as external, which involve listening
just as much as talking.
Now, environment is no more just a slogan, it is a key consumer issue.
PR today must:
*

Understand green issues and recognize the social responsibility of business.

Make environment matters a priority.

Consider the environmental impact of the companys actions.

Avoid pollution of any kind.

Encourage environment audits to determine what the organisation has done and is doing
in relation to the environment.

Ensure recycling of wastes.

Social Responsibility as Public Relations at HUL Ltd: A citizens role extends beyond his or
her call of duty. A responsible corporate citizen needs to look beyond the financial numbers of
sales and profit growth, from year to year.
HUL Ltd is committed to the development of the community around its manufacturing
complexes. Over the years, HUL Ltd has not just supported communities financially, but has
worked towards providing people with skills to earn a sustainable livelihood. HUL Ltd longterm aim is to raise economic standards of these communities, through self-sustainable measures.
PR Role in Image and Identity: It is true that corporate image concerns the industrial marketer
directly as brand image is crucial for the consumer market. The ordinary consumers, while
oblivious of the name of the manufacturer, can easily identify the brands of consumer products.
Repeat this test for industrial goods : the same respondents are aware of the name of the
manufacturers but many wont be able to name the industrial products. Interestingly, a third set

of organisation would be known both for their industrial or consumer products as well as for
their distinct corporate image. Where does corporate PR stand in these diverse settings?
Although easier desired than achieved, PR attempts to create the desired image by its
involvement in all the factors of corporate identification programmes.

GOVERNMENT RELATIONS : A government relation has two facets to it. Firstly, the
PR for the government (as an organisation) and Secondly, PR with the governments as the target
group. Both are important and very needed by corporations.
Public relations for the government involves mobilising public support for governments activity,
for instance, family planning, control, environmental protection, beautification of cites, etc. the
company generally sponsors some of these activities by providing monetary help or other
resources. The basic objective of the company is to build relations with the governments, and
also help for the good of the community of society.
Public relations with the government involves keeping the governmentpoliticians and
bureaucratson your side. It envisages maintaining good links with the government, which will
be of benefit to the company in its overall business plans and operations. Public relations with
the government in some ways are quite difficult and demanding. It requires special planning and
efforts for the organisation to be successful. A government, local or national, comprises many
ministries, departments, individuals and personalities. Public relations people have to acquaint
themselves with the working of the government, and the intricacies and people involved at
various levels, and then handle things accordingly to be able to achieve what they have set out to
achieve.
The government should not be looked at as an adversary. In fact, you should make all efforts to
help the government and support its activities and policies as far as possible. Government
leaders must be kept informed from your side about the organisations activities and policies
especially those which are contributing to the welfare and development of the state or the nation.
Such relations will be mutually beneficial in the short-term and the long-term. Corporations
should, however avoid getting involved with politics and political issues.

MEDIA RELATIONS : Media relations Is a vital tool in PR. A large amount of


communications and PR are conducted through the mediaespecially the Press.

When a

company gets media coverage, it is not always flattering. Business is always vulnerable to
attacks by the media. Media can often aggravate problemsespecially crises. As in the case of
Union Carbide and HULL a few years ago. Hence, media, particularly the Press has to be
handled very carefully. The media must be kept on your side. All efforts must be made to ensure
this strategically. It takes years to build a good image, but to destroy it you need just a few bad
reports in the media.
It is important to build a working rapport with the media. You cannot afford unnecessary
reactions and distortions. If you do go to the media then always go with a strategybe selective
in the choice of media, use only influential media (especially publications in the Press), do not
spread your communication too thin, go for quality rather than quantity. Selective and in-depth
coverage is what you must aim at, as it is more effective and produces the desired results. let
your communication be complete honest, and backed with hard facts. The organisation must be
able to live up to its claims and promises in media, otherwise you can be in for further problems.
The efforts made by HULL in this respect have been orchestrated well to build image as well as
to counter negative publicity.

FINANCIAL RELATIONS : With the growth of the Indian economy and the business
sector, management of financial promotions and PR has taken on a new dimension. HUL Ltd is
making special efforts to ensure the goodwill of their shareholders, investors, financial
institutions, and the rest of the financial community. This is being done in the mass media and
specialised media ranging from annual reports to special brochures to audio-visuals, video films,
and even corporate advertising in the Press and television.
The main target group of a company in financial PR is its shareholders and potential investors.
They have to be given information they are entitled to have, and they have to be kept interested
in the company. Public relations must establish, maintain, and improve the companys image
and reputation so that it can obtain funds from the public and the financial institutions on the
most favorable terms when it desires so The financial and business Press, today, is very
important in achieving this objective,
The importance of financial PR and the need for it is seen from the number and growth of PR
agencies specialising in financial promotion, advertising and PR management in India. These

include well-known names like Pressman, Clea, and Sobhagya, now a host of others. They
provide their clients a wide range of services and expertise in PR and advertising.

CUSTOMER RELATIONS : In the past PR and marketing were considered separate and
unconnected activities of business in a company. Today, PR has a role to play in marketing not
only to build image, but to also help solve problems concerning a companys products
Or services among consumers or other special groups, and generally protecting the companys
reputation at the marketplace. Public relations with customers, and with suppliers, in industrial
products/services marketing at the institutional level is gaining more and more importance today.
In todays competitive market customers opt for products that are known and have an image, and
are backed by quality and good after sales service. Marketing people cannot ignore public
opinion on such aspects. In the long run, unfavorable opinions certainly affect sales. Public
relations can help in controlling and setting right some of these opinions; it is therefore essential
for companies to assign some of their attention and resources to develop PR in marketing.

COMMUNITY RELATIONS : Today, the relationship between corporations and the


community is a vital issue in management of business organisations. It is acknowledged that
business is no longer done for the sake of profits alone. Because a company functions within a
community, its responsibility extends to giving back to the community something for what it
makes from it. This has been the philosophy of the Tatas in India for years, today it is accepted
and is being followed by a number of other companies. This belief is now also considered
important and crucial by the government, consumerists and opinion leaders.
Company relations at an organisation can vary from local community welfare activities, to largescale sustainable development programmes for the betterment of lives of people. Companies
have to consider the community as one of its prime target groups. The objective of PR is to help
build image of the company: as a good corporate Citizen, a good company to do business with,
and a good company to work for.

EMPLOYEE RELATIONS : In employee relations, communicators are vital at every


level. From top to bottom, also from lower level to the top management level, and even the
horizontal communications among colleagues at the same level and between functions. The
basic function of communications and PR in the organisation is not just better functioning, but a
fostering of goodwill, trust, and togetherness among employees.
Employee in HUL Ltd one in a large number and they include both blue collar to white collar.
Internal PR must reach out to all of them. This makes the task tough and critical, requiring much
thinking and planning. Before planning PR programmes, therefore, it is important to first assess
the needs and requirements of employees. One of the major goals of PR is to foster the
participation of employees in decision-making, for this PR programmes must be evolved around
their motivations, job enrichment, training and development, working environment, productivity,
and overall growth in the company. This, in other words, means PR for better employees, better
employee morale, and better relationships, resulting in success and growth of the organisation;
and therefore, a better image and reputation for it.
In the case of PR with employee, the function may seen to overlap with the working of the
companys personnel department. In practice, however, it is necessary that the two departments
work closely together. They can mutually reinforce each other, especially in areas like HRD. It
is worth trying to integrate HRD with PR, if possible, in a company. More so when with the
growth of organisations in size, the individual employee is becoming smaller and less significant,
and thus losing his or her identity. Public relations with HRD can play a crucial role in building
and motivating the employees on their jobs and in their contributing towards achieving the
company goals.

INDUSTRIAL RELATIONS : This is another important area of work for PR executives.


Its importance is growing, with staff and workers getting to be united, more enlightened and
demanding. Whether they are unionized or not does not make a difference in the PR work, in
either case, good relations have to be maintained. In the case of unions, it is important to realize
that unions have their own goals. This makes it more difficult to deal with them in many
respects. Understanding these goals, and how they will affect Industrial relations and PR efforts,
is the first priority in dealing with unions.

Industrial relations concern the staff and workers in their relationship, as individuals and as a
group, with the management.

Industrial relations are most often concerned with problems

related to wages, other monetary benefits, conditions of work, and so on. But through timely PR
and proper communication many of these problems can be avoided or overcome altogether.

DISTRIBUTION SYSTEM OF HINDUSTAN UNI LEVER LTD.


The success of each and every company depends upon the effectiveness of their distribution
system. Hindustan lever ltd has an efficient distribution model.

Manufacturer

Depot

Distributor

Whole seller

Retailer

Consumer

HUL Ltd new distribution system to reach more consumers:


FMGC major Hindustan Uni lever Ltd (HULL) new plans of reinventing distribution so as to
redefine current channels and look at creating new channels. Competition was the main thrust for
this change in its area of distribution.
HUL Ltd, which has been reinventing its distribution system, in a bid to reach out to more
consumer, will look at a three way convergence of product availability, brand experience. They
are building key capabilities entraining the large number of people involved in these initiatives,
through all these initiative they are getting their brands closer to the consumer.
These initiatives are expected to create employment and vocational opportunities through its
nation wide network of 7,000 stockiest and 6,000 sub-stockiest, thereby, employing over 60,000
people. HUL is already involved in channels such as project shakti, which operates in 16 states;
Hindustan Lever Network, which has a consultant base of 25,000 entrepreneurs and out at home
opportunity and heath and beauty services.

CHAPTER - 3
4. RESEARCH METHODOLOGY
8.1 Research Design:
The purpose of this study is to gain consumer insights about SAVLON bath soap and comparing
it with DETTOL and LIFEBUOY which are the two main soap brands in Health category in the
context of Mumbai Region.

8.2 Research Approach:


The respondents will be the consumers and users of bath soap (bar shape) who are interested to
cooperate. To collect the data the in-depth interview method with help of questionnaire is used.

8.3 Sampling Method:


The in-depth interview for this study was limited to Mumbai region only due to certain
limitations. Also, it has been mentioned earlier that, the interview was only on the consumers and
users of bath soap. They were interviewed for minimum of 10 minutes. The sample size was 50
for this study. Random Sampling method was used for selecting samples.

8.4 Research Instrument:


Contacting the customer personally and studying the response from the questionnaire filled.

8.5 Data Analysis Method:

The data analysis of this research was represented on qualitative as well as quantitative manner.
Application packages like Office XP (Microsoft Word, Microsoft Excel) and SPSS were used.
8.6

Data Collection:
8.6.1 Primary Data;
Questionnaires for in-depth discussions with various respondents to be interviewed during
primary survey were designed during this phase. List of contacts were also prepared during
this phase. This involved in-depth face-to- face discussions using semi-structured
questionnaires with various respondents.
8.6.1.1 Pilot field survey
Pilot field survey was conducted with the intention of testing the validity of the
questionnaires for fulfilling the objectives to the study. The questionnaires and the
list of contacts were modified based on responses of pilot field survey.
8.6.1.2 Detailed field survey
Detailed field survey was launched simultaneously at various pre-determined
centers; information was collected through face-to-face interviews with
respondents using semi-structured questionnaires. Questionnaires were also sent
through mail and responses were collected.

8.6.2 Secondary Data:


Taken data from various magazines, Newspaper and other prominent source of
information collected from different websites and search engines.

8.7 Overview:

Research Type:

Objective

Data collection:

Primary source of data (questionnaire), Secondary


Data (internet, books, newspaper and various journals)

Research approach:

Survey method

Research instrument: Questionnaire


Research:

Semi-Structured

Size:

50

Research Sampling:

Convenient sampling

Tools of data analysis: SPSS and Microsoft Excel

5. DATA ANALYSIS

9.1CHARTS AND EXPLANATIONS


9.1.1 Variety of Soap Usage

From

the

above
doughnut
chart

we

can

see

that,
among the
total

respondents 38% people advocated for antiseptic soap and 33% people advised for beauty care soap.
After that, 10% people directed about both skin care soap and flower extract soap. Also, there is little
number of respondents which is only 3% people recommended about medicated soap, herbal soap and
fruit extract soap. So, it is clearly viewed that, antiseptic soap and beauty care soap are more preferable
among all the respondents.

9.1.2

Major Driving Factors

From the
above
column
diagram
we

can

see

that,

while

purchasing new soap both the respondents firstly look for brand and their percentage is 26.67%. Then,
secondly they prefer both antiseptic quality and beauty care quality and for these the percentage is
23.33%. After that, 10.00% consumers seek for both price and ingredients. Again, 6.67% people search
for both availability and packaging. Finally, only 3.33% people hunt for few other factors which are pack
size, advertisements, and shopkeepers opinion. Thus companies should majorly focus on the brand and
its antiseptic and beauty care qualities.

9.1.3 Soap Preference

We can see from the above doughnut that, among the total respondents 58% preferred Dettol as against
Lifebuoy and savlon, only 24% preferred lifebuoy and a mere 18% respondents preferred Savlon. Thus
we can make out the acceptance level of dettol is much higher than the other two brands of soap.

9.1.4 Responses for various Features


9.1.4.1

Price

We can see from the above doughnut that, among the total respondents 44% people said that Price is an
important factor while purchasing soap. 28% respondents stated that price is somewhat important while
purchasing and those are mainly beauty and skin care seekers. Only 12% respondents told that price is the
most important factor while purchasing soap
.

9.1.4.2 Brand Name

We can see from the above doughnut that, among the total respondents only 14% people said that Brand
name is an extremely important factor while purchasing soap. 30% respondents selected for both
important and somewhat important. However 26% people stated that Brand Name is not at all important
while purchasing soap.

9.1.4.3 Fragnance

We can see from the above doughnut that, among the total respondents 42% people said that Fragrance is
an important factor while purchasing soap. 24% respondents stated that fragrance is somewhat important
while purchasing and those are mainly beauty and skin care seekers. Only 10% respondents told that
fragrance is the most important factor while purchasing soap.

9.1.4.4. Hygiene

We can see from the above doughnut that, among the total respondents 48% people said that Hygiene is
an extremely important factor while purchasing soap, these are mainly health conscious consumers. 46%
respondents stated that Hygiene is important and somewhat important while purchasing soap. Only 6%
respondents told that Hygiene is the not important factor while purchasing soap. This shows the
importance of hygiene in the soap industry.

Freshness

We can see from the above doughnut that, among the total respondents almost 75% people said that they
consider freshness while purchasing soap. The remaining respondents stated that freshness is not that
important while purchasing soap.

9.1.4.5 Lather

We can see from the above doughnut that, among the total respondents almost 75% people said that they
consider lather while purchasing soap. The remaining respondents stated that lather is not that important
while purchasing soap.

9.1.5

Responses for Hygiene


9.1.5.1 Dettol

In the column graph above we can see that 37 respondents have rated Dettol as a good soap for hygiene
and only 7 have rated it as a bad soap. Thus it shows that consumers who want hygienic soap have dettol
in their mindset.

9.1.5.2 Savlon

In the column graph above we can see that 29 respondents have rated Savlon as a good soap for hygiene
and only 7 have rated it as a bad soap. Thus it shows that consumers who are aware about savlon rate it as
a better soap than dettol. Thus the company should market savlon soap more effectively.

9.1.5.3 Lifebuoy

In the column graph above we can see that 18 respondents have rated Lifebuoy as an average soap for
hygiene compared to Dettol and Savlon. 24 respondents have rated lifebuoy as a good soap for hygiene.

9.1.6

Responses for Fragrance


9.1.6.1 Dettol

In the column graph above we can see that only 8 respondents have rated Dettol as a very good soap for
fragrance may be because of its hospital kind of smell.

9.1.6.2 Savlon

15

12

In the column graph above we can see that 24 respondents have rated Savlon as a good soap for
fragrance. 14 respondents have rated savlon as not a good soap for fragrance.

9.1.6.3 Lifebuoy

In the column graph above we can see that only 5 respondents have rated Lifebuoy as a very good soap
for fragrance. 14 respondents have rated lifebuoy as not a good soap for fragrance.

10. SPSS ANALYSIS


10.1 Crosstabs - Awareness
Output Created

10-FEB-2010 16:10:38

Comments
Input

Missing
Handling

Value

Data

C:\Documents
Settings\indira\Desktop\spss
input.sav

Filter

<none>

Weight

<none>

Split File

<none>

N of Rows in Working
Data File

50

Definition of Missing

User-defined missing values are treated as


missing.

Cases Used

Statistics for each table are based on all


the cases with valid data in the specified
range(s) for all variables in each table.

Syntax

Resources

and
savlon\spss

CROSSTABS /TABLES=Awareness BY
savlon_information
/FORMAT=
AVALUE TABLES /STATISTIC=CHISQ
/CELLS= COUNT /COUNT ROUND
CELL .
Elapsed Time

0:00:00.55

Dimensions Requested

Cells Available

116508

Case Processing Summary

Cases
Valid
N

Missing
Percent

Total
Percent

Percent

Awareness * savlon
information

50

100.0%

.0%

50

100.0%

Awareness * Lifeboy information Crosstabulation

savlon information

Awareness

Total

Total

Advertising

WOM

Retail
Display

Aware

22

34

Not Aware

16

31

10

50

Any other

Through the above table of cross tabs which compared Awareness level and information about savlon, we
can conclude that majority of the respondents were aware about savlon soap through Advertisng and then
through Retail display. From the total of 50 respondents 34 respondents were aware and 16 were not
aware about savlon soap even though they had heard the name before.

10.1.1 Chi-Square Tests

Value

Df

Asymp. Sig.
(2-sided)

Pearson Chi-Square

1.040(a)

.792

Likelihood Ratio

.982

.806

Linear-by-Linear
Association

.059

.807

N of Valid Cases

50

a 5 cells (62.5%) have expected count less than 5. The minimum expected count is .96.

10.1.2 HYPOTHESIS TESTING


H0(1): Consumer Awareness for Savlon soap is through Retail Display.
H1(1): Consumer Awareness for Savlon soap is not through Retail Display.
The level of significance of chi square is more than 0.5, thus we should reject the null hypothesis and
accept the alternate hypothesis that Consumer Awareness for Savlon soap is not through Retail Display,
it is through Advertising.

10.2 Crosstabs - Preference

Output Created

10-FEB-2010 16:12:33

Comments
Input

Missing
Handling

Value

Data

C:\Documents
Settings\indira\Desktop\spss
input.sav

Filter

<none>

Weight

<none>

Split File

<none>

N of Rows in Working
Data File

50

Definition of Missing

User-defined missing values are treated as


missing.

Cases Used

Statistics for each table are based on all


the cases with valid data in the specified
range(s) for all variables in each table.

Syntax

Resources

and
savlon\spss

CROSSTABS
/TABLES=Soap_Preference
BY
Important_Feature /FORMAT= AVALUE
TABLES
/STATISTIC=CHISQ
/CELLS= COUNT /COUNT ROUND
CELL .
Elapsed Time

0:00:00.00

Dimensions Requested

Cells Available

116508

Case Processing Summary

Cases
Valid

Soap Preference
Important Feature

Missing

Total

Percent

Percent

Percent

50

100.0%

.0%

50

100.0%

Soap Preference * Important Feature Crosstabulation

Important Feature

Soap
Preference

Total

Price

Brand
Name

Fragnance

Hygiene

Freshness

Lather

15

27

savlon

Lifebuoy

14

10

19

50

dettol

Total

Through the above table of cross tabs which compared Soap preference and important feature for
purchasing a soap, we can conclude that majority of the respondents selected hygiene as a most important
factor for purchasing a soap. However for Lifebuoy unlike Lifebuoy the most important factor was price.
From the total of 50 respondents 27 respondents preferred Dettol, 14 preffered Lifebuoy and the
remaining 9 respondents preferred Savlon over the other health brands of soap.

10.2.1 Chi-Square Tests

Value

Df

Asymp. Sig.
(2-sided)

Pearson Chi-Square

15.441(a)

10

.117

Likelihood Ratio

16.319

10

.091

Linear-by-Linear
Association

3.305

.069

N of Valid Cases

50

a 15 cells (83.3%) have expected count less than 5. The minimum expected count is .54.

10.2.2 HYPOTHESIS TESTING

H0(2): Dettol and Savlon soap are preferred on basis of hygiene and lifebuoy is preferred on basis of
price.
H1(2): Dettol and Savlon soap are not preferred on basis of hygiene and lifebuoy is also not preferred
on basis of price.
Since the level of significance of the chi square is less than 0.5 we accept the null hypothesis that Dettol
and Savlon soap are preferred on basis of hygiene and lifebuoy is preferred on basis of price.

10.3 Discriminant Analysis


To screen the perception of consumers based on the following independent
variables:
1. Price
2. Quality
3. Brand
Null Hypothesis Out of the sample size of 30 are favourable perception and 20
are unfavourable perception

Alternate hypothesis the classification is incorrect.

Notes

Output Created

14-FEB-2010 23:41:39

Comments
Input

Data

C:\Documents and Settings\xyz\Desktop\neha


research\New Folder\latest.sav

Filter

<none>

Weight

<none>

Split File

<none>

N of Rows in Working
Data File
Missing Value
Handling

Definition of Missing

Cases Used

50
User-defined missing values are treated as missing
in the analysis phase.
In the analysis phase, cases with no user- or
system-missing values for any predictor variable
are used. Cases with user-, system-missing, or outof-range values for the grouping variable are
always excluded.

Syntax
DISCRIMINANT /GROUPS=cust_percp(1 2)
/VARIABLES=price quality brand /ANALYSIS
ALL /PRIORS EQUAL /STATISTICS=UNIVF
RAW TABLE /CLASSIFY=NONMISSING
POOLED .

Resources

Elapsed Time

0:00:00.02

Analysis Case Processing Summary

Unweighted Cases

Valid
Excluded

Percent
50

100.0

Missing or out-of-range
group codes

.0

At least one missing


discriminating variable

.0

Both missing or out-ofrange group codes and at


least one missing
discriminating variable

.0

Total

.0

50

100.0

Total

Group Statistics

cust_percp

Valid N (listwise)
Unweighted

fav

unfav

Total

Weighted

price

39

39.000

quality

39

39.000

brand

39

39.000

price

11

11.000

quality

11

11.000

brand

11

11.000

price

50

50.000

quality

50

50.000

brand

50

50.000

Tests of Equality of Group Means

Wilks'
Lambda

df1

df2

Sig.

price

.987

.615

48

.437

quality

.828

9.993

48

.003

brand

.985

.746

48

.392

INTERPRETATION:
This table indicates the significance of each and every variable together.
The significance of each of the variable is less than 0.5. Hence it is a good fit.

Analysis 1

Summary of Canonical Discriminant Functions

Eigenvalues

Function

Eigenvalue

% of Variance

.347(a)

Canonical
Correlation

Cumulative %

100.0

100.0

.507

a First 1 canonical discriminant functions were used in the analysis.

INTERPRETATION:
The significance of canonical correlation is greater than 0.5, hence its significant.
So there is no need of including more variables.
Thus it tells that the selection of variables to categorize the respondents is correct. i.e. the above
mentioned independent variables can differentiate the respondents.

Wilks' Lambda

Test of Function(s)
1

Wilks'
Lambda
.743

Chi-square
13.842

df

Sig.
3

.003

INTERPRETATION:
If the significance is greater than 0.5 the variables correlate/overlap each other and if its less than 0.5 the
independent variables are different from each other. In this case, significance is only .001, which shows
that the variables have high discriminating power as its very close to zero.

Standardized Canonical Discriminant Function Coefficients

Function
1
Price

.190

Quality

.941

Brand

.741

INTERPRETATION:
This table shows the importance of a variable for a particular study, in this case Quality and brand are
more important to determine the loyalty of the customers.

Structure Matrix

Function
1

.775
Quality
Brand

.212

Price

.192

Pooled within-groups correlations between discriminating variables and standardized canonical discriminant functions Variables
ordered by absolute size of correlation within function.

INTERPRETATION:
This table shows the extraction of information from the total responses.
Var1 77.5% information was used
Var2 21.2% information was used.
Var3 19.2% information was used.

Canonical Discriminant Function Coefficients

Function
1
Price

.270

Quality

0.555

Brand

-.976

(Constant)

-1.545

Unstandardized coefficients

INTERPRETATION:
This table forms an equation so as to find out the level of risk involved in the study.
If the value is positive it denotes that the respondent is at low risk and vice-versa.
Y= -1.545 + 0.270 (Price) + 0.555(Quality) - .976 (Brand)

Eg:
Price Rs 15
Quality 7 out of 10 (rating)
Brand 6 out of 10 (rating)

Y= -1.545 + 0.270 (15) + 0.555(7) - .976 (6)


= -1.545 + 4.05 + 3.86 5.856
= 0.509
In this case the centroid is 0 and the value of Y is positive (0.509).
Hence the customer perception is favourable.

Functions at Group Centroids

Function
cust_percp

Fav

-.306

Unfav

1.086

Unstandardized canonical discriminant functions evaluated at group means

Classification Statistics

Classification Processing Summary

Processed

50

Excluded

Missing or out-ofrange group codes

At least one missing


discriminating variable

Used in Output

50

Prior Probabilities for Groups

cust_percp

Prior

Cases Used in
Analysis
Unweighted

Weighted

Fav

.500

39

39.000

Unfav

.500

11

11.000

Total

1.000

50

50.000

Classification Results(a)

Predicted Group
Membership
cust_percp
Original

Count

Fav

unfav

Total

31

39

11

Fav

79.5

20.5

100.0

unfav

18.2

81.8

100.0

unfav
%

Fav

a 80.0% of original grouped cases correctly classified.

INTERPRETATION:
This table shows the final result wherein, out of 39 favourable respondents, 8 are unfavourable and out of
11 unfavourable respondents 2 are favourable, hence there is approx. 80% accuracy in the classification of
groups.

11. FINDINGS AND RECOMMENDATIONS


11.1 FINDINGS
1. As per the survey conducted consumers majorly preferred antiseptic and beauty care
soaps. Their purchase decision was based on brand name alongwith the above
mentioned factors.
2. 58% of the respondents in the survey preferred Lifeboy, 24% of them preferred Dettol
and only 18% of them preferred savlon in health and hygiene category.
3. Almost half of the total respondents stated that freshness and hygiene are the most
important deciding factors followed by price, fragrance and brand name while
purchasing soap.
4. Basically people are using soap primarily for cleaning purpose then for germ
protection and beauty care. That is why; under antiseptic soap Dettol soaps has
noticeable demand in the market and it is widely consumed by the loyal consumers of
antiseptic soaps.
5. Savlon follows Dettol in terms of hygiene while lifebuoy was cited as an average
soap in hygiene.
6. Savlon was the most expensive soap as compared to dettol and lifebuoy. According to
the survey lifebuoy was mainly preferred by price conscious respondents.
7. Many respondents said that the fragrance of soap and is usage (duration of using)
should be increased.
8. Lifebuoy was also receptive because of its durability whereas savlon was least
durable among the three health soaps.
9. Many respondents said that the price of the soap should be reduced.
10. Majority of the consumers purchased soaps from their local kirana stores as they
trusted them more.
11. On comparision almost everybody said that dettol is much better than savlon and
lifebuoy is somewhat better than savlon.
12. More than 50% got information about savlon through advertising and also tried
savlon soap, around 25% saw this soap in store but only half of them tried this soap

and out of the remaining who heard of savlon soap from friends and family only 5%
tried it.
13. The major difference cited by most of the respondents was that they trusted dettol for
their family.
14. Some of the respondents said that Dettol has more number of variants as compared to
savlon and lifebuoy.

11.2 RECOMMENDATIONS
1. Even though savlon has better healing capacity than dettol the company failed in its
positioning. Savlon was positioned as first aid solution. To compete with a major brand,
the company should position it firmly and savlon could have been positioned as the germ
fighter with no pain or burns.
2. Promotion campaign of savlon was also not competitive enough, although it generated
lots of interest in the minds of consumer which made them try this product but the
absence of burning sensation miserably harmed the success of the product.
3. The failure of savlon antiseptic did not let the savlon soap brand to come up and it hardly
changed the perception of consumers.
4. Thus company should had promoted the advantages of savlon rather than its features.
They did it in later stage which was of mere use.
5. Company should thrive on innovation and for this more number of variants should be
introduced and if possible soap with combined attributes (health as well as beauty care)
should be introduced which can attract consumers.
6. Lifebuoy is more preferred because of its price and durability, so efforts need to be taken
to improve savlons durability and not increasing the price.
7. More investment should be made in the research and development of the soap as it can
provide an USP to the brand and company as a whole.

8. Company should increase the availability of the product, in most of the kirana stores
(which are the prime destinations of purchasing soaps for consumers) savlon soap was
not available.

12. CONCLUSION
The soap industry in India has been under a change with the advancement of technology. The major
players in soap industry HUL, J&J, P&G, etc are having a stiff competition to gain maximum market
share. The toilet soap sales are declining, eroded by liquid and gel cleansers for the increasingly popular
shower toiletries sector. Bar soap producers are fighting back, taking ingredients such as aromatherapy
oils and natural extracts to provide added functionality and consumer appeal.

From the survey conducted it can be concluded that even though savlon has better attributes than dettol it
is unable to compete because of the exceptional strategies adopted by HUL. J&J were not expecting the
counter attack of HUL and were also weak in their positioning which was a hurdle in their success.

Today soaps are being purchased on major 3 factors:

a. Brand Name
b. Anteseptic Quality
c. Beauty care

Any soap which achieves expertise in atleast two of the above mentioned three factors does very well in
the Indian market.

13. DATA SOURCES


13.1 BIBLIOGRAPHY
Claw, Spencer. "The Soap Wars: A Strategic Analysis." Fortune 67 (1963).
Hair and Bush - Marketing Research
Kothari Research Methodology
Swasy, Alecia. Soap Opera: The Inside Story of Procter and Gamble. New York: Times Books, 1993.
Wilson, Charles. The History of Unilever: A Study in Economic Growth and Social Change. 3 vols.
New York: Praeger, 1968. The original edition was published in 2 vols., London: Cassell, 1954.

13.2 WEBLIOGRAPHY
http://www.encyclopedia.com/doc/1G2-3401803910.html
www.google.com (Search Engine).
https://www.iffxpress.com/xpress/na/xhome.nsf/0/83688E1B4D5787D480256CC900631457
http://www.jnjindia.com/CPD_WoundCare.pdf
http://marketingpractice.blogspot.com/2009/01/savlon-heals-without-hurting.html
http://www.naukrihub.com/india/fmcg/overview/soaps/
http://www.scribd.com/doc/21431229/Soap-Prgt-Mba-II
http://www.scribd.com/doc/18275319/Internship-Report-by-Nusrat-Omer
http://www.unilever.com/brands/personalcarebrands/lifebuoy.aspx

14. ANNEXURES
14.1 QUESTIONNAIRE
1. Person details:
a. Name: __________________________Age:_______ Gender_______
Address:_____________________________________________
b. Marital status:_____________________________________________
c. No. of Family members: _______________________________
2. Currently which soap are you using and why?
_______________________________________________________________
3. As you hear about the following brands what comes to your mind first?
Savlon: ______________________________________________________
Dettol: ______________________________________________________
Lifebuoy:_____________________________________________________
4. Which soap do you prefer? (Rank them)
1. Dettol
2. Savlon
3. Lifeboy

__________
__________
__________

5. Please rate for the similarity between two brands. (Savlon and Dettol)
(5= very similar and 1= not at all similar) (Only in coloured cells)

DETTOL

SAVLON
PRICE

FRAGRANCE

SIZE

FRESHNESS

PRICE
FRAGRANCE
SIZE
FRESHNESS

6. What difference you think is there in both brands? (SAVLON and DETTOL)
7. Please rate for the similarity between two brands. (Savlon and Lifebuoy)
(5= very similar and 1= not at all similar) (Only in coloured cells)

LIF

SAVLON
PRICE

FRAGRANCE

SIZE

FRESHNESS

EBUOY

PRICE
FRAGRANCE
SIZE
FRESHNESS

8. What

difference

you

think

is

there

in

both

brands?

(SAVLON

and

LIFEBUOY)___________________________________________________
9. To what extent is each of the following features an important consideration to you in
selecting your soap?
Features
Extremely imp
Price
[ ]
Brand name
[ ]
Fragnance
[ ]
Hygiene
[ ]
Freshness
[ ]
Lather
[ ]

imp
[ ]
[ ]
[ ]
[ ]
[ ]
[ ]

somewhat imp
[ ]
[ ]
[ ]
[ ]
[ ]
[ ]

not at all imp


[ ]
[ ]
[ ]
[ ]
[ ]
[ ]

10. Please rate the foll soap brands In hygiene (1- 5) (1 = very good, 5= very bad)
Dettol
__________
Lifebuoy
__________
Savlon
__________
11. Please rate the foll brands in fragrance (1- 5) (1 = very good, 5= very bad)
Dettol
__________
Lifebuoy
__________
Savlon
__________
12. Are you satisfied with SAVLON soap? (If YES answer Q13, if NO answer Q14.)
a. YES
b. NO
13. What was the reason for your satisfaction?

14. What was the reason for your dissatisfaction?

15. Compared to other soaps (such as Dettol and Lifebuoy) that are available, would you say
that SAVLON is? (tickmark)
Much better
Somewhat Better

______
______

About the same


Somewhat Worse
Much Worse

______
______
______

16. How do you get information about SAVLON?


Advertising- T.V, Newspaper, Radio

_________

Friends/ Family (word of mouth)

_________

Saw it in store (counter promotion)

_________

Other

_________

17. What additional benefits do you seek in the soap?

18. What are your recommendations for savlon soap?


Price:
______________________
Packaging:
______________________
Fragrance:
______________________
Brand Name ______________________
Any other:
______________________