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SUBMITTED BY :
VANDANA KAUSHAL
Student Declaration
I hereby declare that the project report entitled MARKETING STRATEGIES OF HUL submitted in partial
fulfillment of the requirement for the award degree of POST GRADUATION DIPLOMA OF
MANAGEMENT is my original work and not submitted for the award of any other degree, diploma,
fellowship or any other similar title or prizes anywhere else.
VANDANA KAUSHAL
2
ACKNOWLEDGEMENT
study. I wish to express my gratitude to Mr. Vikram Gupta, my senior guide, who
provided me with constant impetus to complete this project.
VANDANA KAUSHAL
3
ACKNOWLEDGEMENT
VANDANA KAUSHAL
PGDM
4
TABLE OF CONTENTS
Executive Summary
Introduction
Company Profile
Current Market Context
Exports Portfolios
Corporate Management
Research & Innovation Centre
Safety & Health Policy
Market Strategies
HLL Distribution Network
Pioneering Channels
Hindustan Unilever Ltd.
Competitors
Research Methodology
Future Scope
Findings, Data Analysis & Conclusion
Recommendations
Suggestions
Limitations
Bibliography
(Annexure) Questionnaire
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EXECUTIVE SUMMARY
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The research is based primarily on primary data; however few
references to industry figures from secondary data have been made.
Data has been collected through in depth interviews and administered
questionnaires.
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INTRODUCTION
Over 100 years' link with India. In the summer of 1888, visitors to the
Kolkata harbor & 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.
Pond's (India) Limited had been present in India since 1947. It joined
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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.
HUL formed a 50:50 joint venture with the US-based Kimberly Clark
Corporation in 1994, Kimberly-Clark Lever Ltd, which markets Huggies
Diapers and Kotex Sanitary Pads. HUL has also set up a subsidiary in
Nepal, Nepal Lever Limited (NLL), and its factory represents the
largest manufacturing investment in the Himalayan kingdom. The NLL
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factory manufactures HUL's products like Soaps, Detergents and
Personal Products both for the domestic market and exports to India.
Finally, BBLIL merged with HUL, with effect from January 1, 1996. The
internal restructuring culminated in the merger of Pond's (India)
Limited (PIL) with HUL in 1998. The two companies had significant
overlaps in Personal Products, Specialty Chemicals and Exports
businesses, besides a common distribution system since 1993 for
Personal Products. The two also had a common management pool and
a technology base. The amalgamation was done to ensure for the
Group, benefits from scale economies both in domestic and export
markets and enable it to fund investments required for aggressively
building new categories.
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In January 2000, in a historic step, the government decided to award
74 per cent equity in Modern Foods to HUL, thereby beginning the
divestment of government equity in public sector undertakings (PSU)
to private sector partners. HUL's entry into Bread is a strategic
extension of the company's wheat business. In 2002, HUL acquired the
government's remaining stake in Modern Foods.
COMPANY PROFILE
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The mission that inspires HUL's 36,000 employees, including over
1,350 managers, is to "add vitality to life." HUL meets everyday 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 51.55% of the
equity. The rest of the shareholding is distributed among 380,000
individual shareholders and financial institutions.
HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair &
Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke
Bond, Kissan, Knorr-Annapurna, Kwality Wall's are household names
across the country and span many categories - soaps, detergents,
personal products, tea, coffee, branded staples, ice cream and culinary
products. They are manufactured in close to 80 factories. The
operations involve over 2,000 suppliers and associates. HUL's
distribution network, comprising about 7,000 redistribution stockists,
directly covers the entire urban population, and about 250 million rural
consumers.
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involved in education and rehabilitation of special or underprivileged
children, care for the destitute and HIV-positive, and rural
development. HUL has also responded in case of national calamities /
adversities and contributes through various welfare measures, most
recent being the village built by HUL in earthquake affected Gujarat,
and relief & rehabilitation after the Tsunami caused devastation in
South India.
Over the last three years the company has embarked on an ambitious
programme, Shakti. Through Shakti, HUL is creating micro-enterprise
opportunities for rural women, thereby improving their livelihood and
the standard of living in rural communities. Shakti also includes health
and hygiene education through the Shakti Vani Programme, and
creating access to relevant information through the iShakti community
portal. The programme now covers about 50,000 villages in 12 states.
HUL's vision is to take this programme to 100,000 villages impacting
the lives of over a 100 million rural Indians.
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Unilever which owns a 67% controlling share in HUL as of March 2015
and is the holding company of HUL.
CEO: Sanjiv Mehta (Oct 10, 2013)
Headquarters: Mumbai
Founded: October 17, 1933
Parent organization: Unilever
FINANCIAL OVERVIEW
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15
Hindustan Lever Limited Shareholding
Pattern
Flls
13.7
Domestic
Fls
14.8 Unilever
51.6
Individual
19.9
HUL Equity Capital - 50 Mn $
Market Capitalisation - 7,300 Mn $
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PRESENT MARKETING STRATEGY:
Mission:
needs for nutrition, hygiene, and personal care with brands that help people feel
Policy:
HUL has earned a reputation for conducting its business with integrity and with
respect for the interests of those their activities can affect. This reputation is an
Their first priority is to be a successful business and that means investing for
growth and balancing short-term and long-term interests. It also means caring
about their consumers, employees and shareholders, their business partners and
behavior from all of us. The general principles contained in this Code set out
countries and companies will build on these principles as appropriate, but will not
include any standards less rigorous than those contained in this Code.
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We want this Code to be more than a collection of high-sounding statements. It
must have practical value in their day-to-day business and each one of us must
follow these principles in the spirit as well as the letter.ref: business world
magazine.
HUL companies and employees are required to comply with the laws and
Employees
mutual trust and respect and where everyone feels responsible for the
HUL are committed to safe and healthy working conditions for all
labour.
HUL respect the dignity of the individual and the right of employees to
freedom of association.
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HUL will maintain good communications with employees through
Consumers
offer value in terms of price and quality, and which are safe for their intended
use. Products and services will be accurately and properly labelled, advertised
and communicated.
Shareholders
principles of good corporate governance. They will provide timely, regular and
Business Partners
Community Involvement
fulfill their responsibilities to the societies and communities in which they operate.
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Public Activities
HUL companies are encouraged to promote and defend their legitimate business
interests. HUL will co-operate with governments and other organisations, both
proposed legislation and other regulations which may affect legitimate business
interests.
HUL neither supports political parties nor contributes to the funds of groups
The Environment
sustainable business.
HUL will work in partnership with others to promote environmental care, increase
Innovation
In their scientific innovation to meet consumer needs they will respect the
concerns of their consumers and of society. They will work on the basis of sound
Competition
HUL believes in vigorous yet fair competition and supports the development of
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appropriate competition laws. Their companies and employees will conduct their
operations in accordance with the principles of fair competition and all applicable
regulations.
Business Integrity
HUL does not give or receive, whether directly or indirectly, bribes or other
improper advantages for business or financial gain. No employee may offer, give
or receive any gift or payment which is, or may be construed as being, a bribe.
Any demand for, or offer of, a bribe must be rejected immediately and reported to
management.
Conflicts of Interests
All HUL employees are expected to avoid personal activities and financial
interests which could conflict with their responsibilities to the company.
HUL employees must not seek gain for themselves or others through misuse of
their positions.
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Compliance Monitoring Reporting
Assurance of compliance is given and monitored each year. Compliance with the
Code is subject to review by the Board supported by the Audit Committee of the
Board and the Corporate Risk Committee.
Any breaches of the Code must be reported in accordance with the procedures
specified by the Joint Secretaries. The Board of Unilever will not criticise
management for any loss of business resulting from adherence to these
principles and other mandatory policies and instructions.
Provision has been made for employees to be able to report in confidence and
no employee will suffer as a consequence of doing so.
In this Code the expressions 'Unilever' and 'Unilever companies' are used for
convenience and mean the Unilever Group of companies comprising Unilever
N.V., Unilever PLC and their respective subsidiary companies. The Board of
Unilever means the Directors of Unilever N.V. and Unilever PLC.ref:THE NEWS
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Envoirment policy
Hindustan Unilever Limited (HUL) 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.
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.
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The Vision
FMCG Markets
Slowdown in growth & then 2 years of decline
00 01 02 03
8
6
4
6.7
2 3.4
0
-1.1
-2.5
-2
-4
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FMCG Markets
2004 - Revival after 2 years of decline
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Pricing action in 2004:
Price reduction
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Investment Behind Brands
Family safe Petalsoft Water & effort saving Quick wash - 50% No mud Rin
Advance from germs
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Current Market Context
Actions
Pricing
Laundry : Price Reduction
Shampoos: Value Improvement & Lower Price Points
Toothpaste: Value Corrections & SKU rationalization
Investments behind brands
Innovations
Quality
Higher A&P
Corrective actions in processed
Processed Foods
Corrective actions
Phased stock reduction
Withdrawl of 03 innovation
Defocus of Atta in unviable geographies
Sales decline of 26% arising from above actions
Market shares held / improved
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BRANDS
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PRODUCTS
Lux Breeze
Lifebuoy Dove
Liril Pears
Hamam Rexona
Axe Lakme
Rexona
Ayush
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Kissan Kwality Wall's
Knorr Annapurna
It was 1962. The reality of India then was very different from what it is
today. India's economy then suffered from foreign exchange shortage.
Hindustan Lever voluntarily decided to take up Exports to support the
country's economy.
Focus Areas
HUL's Exports focuses on two broad areas. It is a sourcing base for Unilever
brands in Home & Personal Care (HPC) and Tea for supplies to other Unilever
companies. It also focuses on becoming a preferred supplier to both non-
Unilever and Unilever clients in three categories in which India, as a country,
has competitive advantage - Marine Products, Castor and its Derivatives and
Rice. HUL enjoys international recognition within Unilever and outside for its
quality, reliability and speed of customer service.
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Africa, North America and Europe.
HPC:
The categories are soaps, skin care products and oral care products. The
brands are Lux, Lifebuoy, Pears, Fair & Lovely, Dove, Vaseline, Close-Up,
Pepsodent, Signal. HUL is the only source of Pears soap across the world.
Tea:
The categories are branded packet tea, and instant tea for Unilever's ready-
to-drink tea business. The branded teas are Brooke Bond, Brooke Bond Red
label, Brooke Bond Taj Mahal, Lipton, Lipton Yellow Label, Lipton Green Label,
Lipton Brisk, Lipton 3-in-1 premix, Chinese Rickshaw.
Marine Products:
Rice:
The categories are Basmati Rice and Basmati Rice-based ready-to-eat rice
meals. The brands are Gold Seal Indus Valley, Rozana and Annapurna.
Castor:
The categories are Castor Oil, Castor-oil based products, like hydrogenated
castor oil, 12 - Hydroxy Stearic Acid, Ricinoleic Acid (used in grease and
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lubricant industry, paints and surface coatings, cosmetics, emulsifiers), and
Speciality Castor Oils (USP grade, BP grade, DAB 10) etc used in
pharmaceutical preparations. HUL's Castor brand is Topsol.
Direct Selling:
Product Range
Lever home range
Male grooming
Oral Care
Ayurveda
Personal Wash
Foods
Reach - 1400 towns (Largest in India)
Consultant base - 330,000
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Accordingly, HUL's 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.
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Responsibilities
Corporate
Nominate:
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Assess environmental impact of HUL operations and establish
strategies for sound environment management and key
implementation steps.
Individual Units
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In order to fulfill the requirements of the Environment Policy at
each site, the Unit Head will:
Ensure that the unit complies with Unilever and HUL mandatory
standards and the relevant national and state regulations with
respect to environment.
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Sustain a high degree of environmental awareness through
regular promotional campaigns and employee participation
through training, safety committees, emergency drills etc.
Since most new products and processes are developed in these Units,
certain additional
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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.
QUALITY POLICY:
The company recognises that its employees are the primary stheirce of
success in its operations and is committed to training and providing
them the necessary tools and techniques as well as empowering them
to ensure broad base compliance of this policy in the organisation at
all levels.
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The company is committed to fulfill its legal and statutory obligations
and international standards of product safety and hygiene and will not
knowingly sell product that is harmful to consumers or their
belongings. It will institute systems and measures to monitor
compliance in order to meet its responsibilities to consumers.
The company will periodically review this quality policy for its
effectiveness and consistency with business objectives.
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SAFETY AND HEALTH POLICY
Introduction
Their Vision
HUL NEWS:We will bring safety on top of mind for all employees and
will integrate it with all business processes. We will realize their 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.
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Safety Principles:
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Consumer satisfaction
Home to over 700 million people, rural India comprises not only over
70% of India's billion-strong population, but also over 12% of the
world's population. The rural population already accounts for
substantial consumption of Fast Moving Consumer Goods and also
consumer durables. About 50% of the sales of soaps & detergents are
generated in rural India. Similarly, almost half the demand for black &
white television sets, pressure cookers, table fans, sewing machines
also comes from there.
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Cost management:
Hindustan Lever has taken many initiatives over the decades to create
markets in the rural hinterlands. By marketing relevant products, at
affordable prices.
At the same time, if products have to come up the order in the rural
purchase hierarchy, they have to be affordable. If rural India today
accounts for about half of detergents sales, it is because HUL has
developed low-cost value-for-money branded products, like Wheel.
The company has also taken initiatives to create markets even for
apparently premium products, by offering them in pack sizes, like
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sachets, whose unit prices are within the reach of rural consumers.
For example, initiated in the 1980s, sachets (Rs.2, Re.1, or 50 paise)
today constitute about 55% of Hindustan Lever's shampoo sales. With
media reach gradually increasing, rural consumers today, where the
media has its footprints, share the same aspirations with their urban
counterparts. HUL has responded to the trend with low unit price
packs of even other products - Lux at Rs.5, Lifebuoy at Rs.2, Surf
Excel sachet at Rs.1.50, Pond's Talc at Rs.5, Pepsodent toothpaste at
Rs. 5, Fair & Lovely Skin Cream at Rs.5, Pond's Cold Cream at Rs.5,
Brooke Bond Taaza tea at Rs.5.
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special price of Rs.15, comprising a low unit price pack of shampoo,
talcum powder, toothpaste and skin cream, along with educational
leaflets and audio-visual demonstrations. The project has helped
eliminate barriers to trial, and has strengthened salience of both
particular categories and brands. Similarly in 2002, Hindustan Lever
has launched a similar large-scale direct contact, called Lifebuoy
Swasthya Chetana, which already covers 70 million people in 18,000
villages of 8 states. The project is intended at generating awareness
about good health and hygiene practices, and specifically how a
simple habit of washing hands is essential to maintaining good health.
The initiative will involve interaction with students and senior citizens,
who act as change agents.
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Therefore in 1998, Hindustan Lever launched Project Streamline to
further extend its distribution reach. Under this initiative, the company
identifies sub-stockists in a large village, connected by motorable road
to a small town. This sub-stockist in turn distributes the company's
products to outlets in adjacent smaller villages using transportation
suitable to interconnecting roads, like cycles, scooters or the age-old
bullock cart. Hindustan Lever is thus trying to circumvent the barrier
of motorable roads. As a result, the distribution network, as of now,
directly covers about 50,000 villages, reaching about 250 million
consumers. The company simultaneously uses the wholesale channel,
suitably incentivising them to distribute company products.
Over time, Hindustan Lever will further strengthen its rural distribution
through mutually beneficial alliances with rural Self Help Groups
(SHGs). Over the last five years, financial institutions, NGOs and
government organisations are working closely to establish SHGs,
whose objective is to alleviate poverty through sustainable income-
generating activities. Since 2001, Hindustan Lever is implementing
Project Shakti, whereby SHGs are being offered the option of
distributing relevant products of the company as a sustainable
income-generating activity. The model hinges on a powerful win-win
relationship; the SHG engages in an activity which brings sustainable
income, while Hindustan Lever gets an interface to interact and
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transact with the rural consumer. HUL's vision for Project Shakti is to
scale it up across the country by 2005, creating about 25000 Shakti
entrepreneurs, covering 100,000 villages, and touching the lives of
100 million rural consumers. Begun with 50 groups in Nalgonda
district of Andhra Pradesh, with the support of local authorities, the
project has been extended, as of now, to about 50,000 villages in 12
states. A typical Shakti entrepreneur conducts business of around
Rs.10,000 - Rs 15,000 per month, which gives her an income of about
Rs 700 - Rs.1000 per month on a sustainable basis. As most of these
women are from below the poverty line, and live in extremely small
villages (less than 2000 population), this earning is very significant,
and is almost double of their past household income. The full benefit
of Project Shakti will be realised after some years.
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HUL DISTRIBUTION NETWORK
WHOLESALERS
RETAILERS
CUSTOMERS
This is the whole Distribution Chain of HUL to cover the Rural market.
The company have remarkably worked upon to make the supply chain
from manufacturers to retailers simple with very few number of
mediators and jobbers. It has helped them to maintain the
transparency in the cycle and also have let them established a prompt
delivery process. The products are manufactured in the factories all
across India and then is supplied from there to the various Carriage
and Forwarding (C&F) units which are 5-10 per state depending on
the area they have to cover and are established by the company.
These C&F units then supply the products to the various Wholesalers
confined to their area only and according to the wholesalers demand.
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The wholesalers then supply the products to the semi-wholesalers and
the retailers as per the volume of their order. Then the semi-
wholesalers deliver the products to the retailers and customers.
MANUFACTURER
STAGE 1-
C&F
In this stage the products reach to the Carriage and Forwarding unit
from various manufacturing units established all across India. The
volume of the delivery depends upon the quantity required/ordered by
the C&F unit. The depot sends the request of the volume of the
products to the Head Office, which then order the various factories to
supply the products to the mentioned depot. The supply is met within
a week. HUL has 45 C&Fs with 7000 stockists and 2000+ suppliers
and associates to target the market.
C&F
STAGE 2-
WHOLESALERS
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NATION WIDE MANUFACTURING:
The year was 1923. Lord Leverhulme, the legendary founder of Lever
Brothers, was visiting India. The nationalist sentiment in India was for
locally manufactured products. Lord Leverhulme, who believed that
what is good for a country is equally good for the company, responded
to that aspiration because he too shared that dream.
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DEVELOPING BACKWARD AREAS
Several HUL factories are situated in backward areas. The company
has consciously responded to the national policy of development of
backward areas by setting up manufacturing units in these places,
which provide several direct and indirect employment opportunities for
these areas, and leads to general economic development of these
regions through industrialisation. In fact, all major investments of
HUL, in recent years, have been either in A-Category backward areas
or No-Industry Districts. These include factories in Khamgaon and
Yavatmal (Maharashtra), Chhindwara (Madhya Pradesh), Orai,
Sumerpur and Khalilabad (Uttar Pradesh), Haldia (West Bengal),
Silvassa (Dadra & Nagar Haveli), Pondicherry, Goa, Doom Dooma
(Assam), Haridwar (Uttaranchal) and Barotiwala (Himachal Pradesh).
Since 2001 itself, HUL has set up nine new factories in backward
areas.
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manufacturing excellence since 1994. As on date, TPM is in different
stages of implementation in 28 factories. Four HUL factories have
already received the TPM Consistency Award, and 14 factories have
been awarded with the TPM Excellence Award.
How do you ensure that Mr. Ramesh in Kanyakumari gets his Lifebuoy
soap and Mrs. Kulkarni in Jammu gets to know how Bru coffee tastes
even before she has bought it? Well, you need to have a cutting edge
distribution network in place.
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AT THE SUPERMARKETS
In the villages
HUL has also revamped its sales organisation in the rural markets to
fully meet the emerging needs and increased purchasing power of the
rural population. The company has brought all markets with
populations of below 50,000 under one rural sales organisation. The
team comprises an exclusive sales force and exclusive redistribution
stockists, under the charge of dedicated managers. The team focuses
on building superior availability, while enabling brand building in the
deepest interiors. HUL's distribution network in rural India already
directly covers about 50,000 villages, reaching about 250 million
consumers, through about 6000 sub-stockists.
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Harnessing Information Technology
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these women and their families, by equipping and training them to
become an extended arm of the company's operation.
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Pradesh, Chattisgarh and Karnataka. The vision is to cover 80,000
villages in 2005.
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Hindustan Lever Network (HLN) is the company's arm in the Direct
Selling channel, one of the fastest growing in India today. It already
has about 3.5 lakh consultants - all independent entrepreneurs,
trained and guided by HLN's expert managers. HLN has already spread
to over 1500 towns and cities, covering 80% of the urban population,
backed by 42 offices and 240 service centres across the country. It
presents a range of customised offerings in Home & Personal Care and
Foods.
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NOVEL PRODUCT NEW PROCESS
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Consider for example, HUL's development of a water-saving
technology for its detergents. One of the most severe problems that
India faces today is shortage of water. Water scarcity affects one in
every three Indians. In a typical Indian home, at least 20% of the
water consumed goes behind washing of clothes. HUL decided that it
would be of immense benefit to an Indian household, if a technology
could be developed, which would help reduce water consumed in
washing of clothes. HUL's scientists have innovated a path-breaking
technology - it reduces water consumption and time taken for rinsing
by 50%. The technology has already been introduced.
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realise the purpose of iodised salt - that people get appropriate iodine
intake through the food they eat.
Energy conservation
In the past, one of the most significant breakthroughs of HUL's
research initiative has been the development of a technology to use
non-conventional forest seed oils for soap-making which, since the
1970s, has helped save around $1.2 billion in foreign exchange. HUL
had received the Government of India's prestigious award for import
substitution. Development of Structurant Technology for soap
manufacturing also helped save costly conventional oils without any
compromise on product performance and quality. The latest
technology to produce Distilled Fatty Acid for soap making and the
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resultant plant capacity expansion has drastically brought down
specific energy consumption while improving distillation yields. The
evolution of continuous soap processing technology has also reduced
energy consumption.
HUL believes that technology is critical to delight consumers. Creative
application of technology has made Hindustan Lever successful in
launching products and services, which raise the quality of life.
HELPING HANDS:
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distribution of bread and biscuits to over 2000 families in Pondicherry,
12,000 cooked meals for families in Chennai, Nagapattinam, Cuddalore
and Andamans. Over 12,000 dry relief packs, comprising of Company's
dry rations and personal hygiene products have already been
distributed.
The biggest concern is, that people/ fishermen have lost their means
of livelihood. HUL plans to focus its rehabilitation efforts to restore
their means of livelihood so that the local communities can quickly get
back to their lives at the earliest.
HUL has always been a front runner in its call for national duty and
caring for the community. Its employees not only donate generously,
but volunteer to take part in relief operations by committing their time
and physical effort. This is in line with our corporate value of care
and our CSR mission which has become an integral part in our way of
doing business.
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HUL is India's largest Fast Moving Consumer Goods company, touching
the lives of two out of three Indians. HULs mission is to add vitality
to life" through its presence in over 20 distinct categories in Home &
Personal Care Products and Foods & Beverages. The company meets
everyday needs for nutrition, hygiene, and personal care, with brands
that help people feel good, look good and get more out of life.
Under the Happy Homes initiative, HUL supports special education and
rehabilitation of children with challenges.
Asha Daan:
The initiative began in 1976, when HUL supported Mother Teresa and
the Missionaries of Charity to set up Asha Daan, a home in Mumbai for
abandoned, challenged children, and the destitute. Subsequently, Asha
Daan has also become a home to the HIV-positive. The objective in
supporting Asha Daan was and continues to be to share the
organsation's prosperity in supporting the Mother's mission of serving
the "poorest of the poor". Asha Daan has been set up on a 72,500-
square feet plot belonging to HUL, in the heart of Mumbai city. HUL
bears the capital and revenue expenses for maintenance, upkeep and
security of the premises. The destitute and the HIV-positive are
provided with food, shelter and medication for the last few days of
their lives. The needs of the abandoned challenged children are also
met through special classes of basic skills, physiotherapy and, if
possible, corrective surgery. At any point of time, it takes care of over
300 infants, destitute men and women and HIV-positive patients.
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Over the years, HUL has opened schools for challenged children with a
sharper objective of supporting families of such children, helping the
children become self-reliant by learning appropriate skills to be
productive members of the household.
Ankur:
In 1993, HUL's Doom Dooma Plantation Division set up Ankur, a centre
for special education of challenged children. The centre takes care of
children with challenges, aged between 5 and 15 years. Ankur
provides educational, vocational and recreational activities to over 35
children with a range of challenges, including sight or hearing
impairment, polio related disabilities, cerebral palsy and severe
learning difficulties. These physically and mentally challenged children
are taught skills, such as cookery, painting, embroidery, bamboo
crafts, weaving, stitching, etc depending on their aptitudes. The centre
has rehabilitated 10 children, including self-employment for 6 children
by providing them with shops, and 3 girls have been provided
employment as creche attendants. It has also moved to normal
schools 18 children. Since inception it has covered about 80 children.
Ankur received the Lawrie Group Worldaware Award for Social
Progress in 1999 from HRH Princess Royal in London.
Kappagam:
Encouraged by Ankur's success, Kappagam ("shelter"), the second
centre for special education of challenged children, was set up in 1998
on HUL Plantations in South India. It has 17 children. The focus of
Kappagam is the same as that of Ankur. The centre has 17 children,
being taught self-help skills, useful vocational activities like making of
paper covers, greeting cards, wrapping papers, fancy stationery,
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napkins, brooms made out of coconut leaves, candles, and also some
home care products. About 12 of the children have become relatively
self-reliant by earning through crafts learnt at the centre. Since
inception, it has covered about 28 children.
Anbagam:
Yet another day care center, Anbagam ("shelter of love"), has been
started in 2003 also in the South India Plantations. It takes care of 11
children. Besides medical care and meals, they too are being taught
skills such that they can become self-reliant and elementary studies.
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growing by 14.4%. Domestic FMCG sales were higher by 15.8% with
both Home and Personal Care (HPC) and Foods performing well.
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For full year 2005, total sales were 11.4% higher than in the
previous year, with broad based growth across categories leading to
both HPC and Foods businesses growing by 14% and 8%, respectively.
Judicious price increases coupled with robust cost saving initiatives
partly neutralised the impact of both cost escalations, particularly in
the Laundry category, and the higher investments behind brands.
Consequently, PBIT increased by 1.1%. A lower tax charge for the
year resulted in a PAT growth of 12.9%. Net Profit and Earnings Per
Share at Rs 6.40, grew by 17.6%.
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DIVIDEND
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Woodbriar Group has interests in plantations, insurance services and
real estate. The Groups gardens are spread across the premium tea
growing regions in Tamilnadu and Kerala. HUL management believes
that the proposed transfer to Woodbriar Group is in the best interest of
the tea plantation business and all its stakeholders. Existing terms and
conditions of services of all TEIL employees will be fully protected in
accordance with applicable laws and terms of their employment.
With this disposal of shareholding in TEIL, HUL has completed its exit
from its tea plantations business both in South India and Assam. It
may be recalled that HUL had sold its interests in Rossell Industries
Limited and Doom Dooma Tea Company Limited in Assam during the
last 12 months.
About HUL:
HUL is India's largest Fast Moving Consumer Goods Company,
touching the lives of two out of three Indians. HUL's mission is to "add
vitality to life" through its presence in over 20 distinct categories in
Home & Personal Care Products and Foods & Beverages. The company
meets everyday needs for nutrition, hygiene, and personal care, with
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brands that help people feel good, look good and get more out of life.
For more information visit www.HUL.com
COMPETITORS
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Financial Highlights
Fiscal Year End: June
Revenue (2005): 56741.00 M
Revenue Growth (1 yr): 10.40%
Employees (2005): 110,000
Employee Growth (1 yr): 0.00%
RESEARCH METHODOLOGY
RESEARCH DESIGN
For this research project exploratory method is using
RESEARCH INSTRUMENT
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needed to be elicited. I am also using the scaling technique to assess
the attitude of the customer.
SAMPLING PLAN
Keeping all the constrains in mind a sample size of 100 people .The
sampling procedure is systematic sampling
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SCOPE
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FINDINGS, DATA ANALYSIS AND CONCLUSIONS WHEN
COMPARED WITH PROCTER AND GAMBLE LTD.
Findings
Product line
Rexona .
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FOODS
In tea they have the brand name brook bond and lipton.
In coffee they have bru.
In foods they have kissan and kinnor annpuran.
In ice creams they have the kwality walls.
WATER
Procter and Gamble P&G Hygiene and Health care ltd. markets
several leading brands: Whisper sanitary napkins in the Feminine
Hygiene category; Health care products such as Vicks VapoRub, vicks
action 500, Vicks Cough Drops, Vicks Inhaler; skin care and cosmetic
products viz. Old Spice.
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DEALERS
MODE OF TRANSPORTATION
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Conclusion: Both P&G and HUL uses advanced tracking technology to
track the goods and both companies use railways and roadways for
transporting there products. In HUL transportation cost is shared by
HUL and the dealer, where as at P&G, transportation cost is paid by
P&G.
FLEXIBILITY
Conclusion: our group has found that Dealers of HUL are more
satisfied than the dealers of P&G and therefore HUL is a step ahead in
terms of flexibility of placing orders and accepting orders from the
dealers.
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DISTRIBUTION CHANNEL STRUCTURE
Conclusion- Our group has found that H.L.L. has more effective and
efficient distribution network as compared to P & G, which increases
the availability and presence of HUL product. HUL is also given
emphasis on penetrating the rural market as well.
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DEALING WITH UNSOLD & DAMAGED MERCHANDISE
Procter And Gamble- P & G replaces the damaged product with the
new one, it means that the damaged product are replaced by new
product.
Conclusion- Our group has found that both the companies take back
the unsold product however P & G is more flexible in returning the
damaged product as compared to the HUL. Hence P & G is more
flexible here.
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PERFORMANCE APPRAISAL SYSTEM
Conclusion- the conclusion that our group has found that there is
hardly any differences is the performance appraisal methods in both
the companies .both the companies are taking almost the same
measures and same parameters for performance appraisal , however
both the company were not willing to disclosed any changes brought in
performance appraisal system during the past five years .both of the
companies said that there have been change in some areas and which
has shown positive results, but not willing to give any reasons and
what changes have been brought.
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TARGETS
Procter And Gamble- P&G also has different channel members with
specified targets and they are intended to increase sales .P&G also
made changes in channel members during 2001-2006 to increase
sales of the company. The channel members expect ROI depending on
there knowledge and on there performance to. Channel members get
credit period of 30 days. Payment terms of P&G are also flexible to the
channel members and P&G also has flexible payment terms P&G also
offers many discounts to these channel members. P&G has made
many changes to there commercial terms during 2001-2006 to
increase sales.
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Conclusion-Both HUL and P&G are flexible to channel members, but
HUL runs some monopoly over the market by offering a credit period
of only two weeks where as P&G offers credit period of 30 days. HUL
also sets targets to there channel members and provides very less
margins to dealers compared to P&G.
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SALES FUNCTIONING
Procter And Gamble: P&G has increased the number of outlets in the
country and the population in the area also increased and there is no
effect on sales. P&G sets targets to there sales force on the basis of
increase or decrease in demand and also according to the previous
sales , sales territories are assigned according to the capabilities of the
sales personnel, responsibility of the sales personnel is to clarify the
doubts of the customer and make sales of the product. Performance
appraisal of sales force is done by the manager by doing meeting with
them parameters of appraisal is increase or decrease in sales it is done
on monthly basis. P&G trains their sales force by on the job training
and training process is emphasized on skill and experience, P&G has
also brought many changes in the training system that has affected its
sales too. P&G motivates their sales force by providing them with
targets and incentives.
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Conclusion; Both P&G and HUL trains their sales force and has a good
performance appraisal system, P&G does appraisal on a monthly basis
depending on increase and decrease of sales where as HUL does it
once in a year.
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RECOMMENDATIONS
Both the companies having good market share in India and it keep on
increasing. Both the co. i.e. HUL and P&G should open exclusive shop.
HUL is already having exclusive shop in Mumbai called SANGAM
STORE. But it is only in India so it should be increased. The employee
should be given uniforms in which the name of the company should be
printed, by doing this the sales people get motivated. These shops
should be opened for 24 hours. They should offer 24 hours free home
delivery system. The delivery vehicle should be attractive the name of
the company should be printed in that so that it becomes the sources
of advertisement.
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They should increase their CSR activities in northern India. At present
they are currently doing their CSR in southern India. So they should
increase their activities in north India also.
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SUGGESTIONS
HUL sales growth in june 2004 was decreased due to the problem
with promotion and pricing. Although being the most competitive
product on the basis of the Market Operating Price (MOP), the
shampoos are still not selling much. This is perhaps due to the
bargaining stress on the customer and the weak push given by the
dealer to the particular item, when actually it should be sold like a high
volume product.
Another serious suggestion is that HUL must give good attention to
their all the products rice and all are not getting much attention. The
dealers dont provide much support to the customers in making them
understand the real Quality behind them. Either, the technical details
should be presented in a clearer manner or the dealers need to be
educated properly.
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LIMITATIONS
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BIBLIOGRAPHY
3. Companys brochure
4. www.google.co.in
5. www.HUL.com
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ANNEXURE
SPECIMEN
Name
Age
Address
Newspaper Magazines
Television Others _______
YES NO
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Q4. If Yes, then are you satisfied?
YES NO
Personal Wash
Laundary
Skin Care
Oral Care
Pepsodent ________ Close-up ________
Others ________
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Deodorants
Colour Cosmetics
Lakme ________ Others ________
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RETAILER SURVEY QUESTIONNAIRE
a).Yes b). No
.
2. Why dont you keep the products of Parle in your shop or why
did you stop keeping its products?
Yes No
Personal Wash
Laundary
Skin Care
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Sunslik Naturals ________ Others ________
Oral Care
Deodorants
Colour Cosmetics
1. Very High
2. High
3. Average
4. Rarely
5. Very Rarely
6. Never
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5. From whom do you purchase your product?
1). Distributor
2). Dealer
3). Agency
4). Wholesaler
1. Excellent
2. Above Average
3. Average
4. Below Average
5. Extremely Poor
a).One
b)Two.
c)Three.
d)More than three.
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1). Two wheeler
a). scooters__ , b). motorbike__.
2) Three wheeler
3) Four wheeler
a) van__ ,b) truck__,c) others__.
_________________________________________________
_________________________________________________
PERSONAL DETAILS:
Name: ___________________________________________
Address: _________________________________________
Cont. No.: ________________________________________
Signature: ________________________________________
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