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ADVERTISEMENT ANALYSIS
OF
HINDUSTAN LIVER LIMITED
(Amit Kumar)
PERFACE
The project report presented here is the part of the syllabus of the
M.B.A. degree provided by Maharshi DayaNand University, Rohtak.
(Amit Kumar)
ABOUT HINDUSTAN LEVER LIMITED
Background
Three Unilever companies were merged in 1956 to form HLL. These
companies were Hindustan Vanaspati Manufacturing Company -edible oil
(established in 1931), Lever Brothers India Limited- soaps (1933) and United
Traders-personal products (1935). About 10% of the equity was offered to the
public by way of an IPO in 1956. To comply with FERA, Unilever’s stake was
further diluted to 51% in the late 70’s. To retain 51% foreign holding, HLL
complied with stringent export and other stipulations imposed by the
government, and diversified into businesses such as chemicals, fertilizers and
exports. Ponds joined the Uniliver fold through a global acquisition in 1986. In
the last decade, HLL has expanded its operations by the merger and takeover
route. It acquired TOMCO - an ailing Tata group company (1993), merged
Unilever group companies Brooke Bond Limited (1996) and Ponds' India
(1998), and has acquired cosmetic business of another Tata group company
Lakme (1998).
Unilever 51.55 %
Mutual Funds and UTI 3.78 %
Banks, Financial Institutions, Insurance Companies, other institutions 10.09 %
1933
1935
- On 11th May a subsidiary Co. was incorporated under the name United
Traders Pvt. Ltd. for marketing the products of the Co. or imported from the
parent Co.
1956 –
- On 27th October, the Co. was converted into a Public Ltd. Co.
Lever Ltd. From 23rd October onwards activities of subsidiary Co. were
taken over by its holding Co.
Toilet soap sales were HLL is the second largest revenue earner in 2001,
recording sales of $435 million (Rs. 20.98 billion), giving HLL 52% of the
Indian market, and accounting for 18.2% of the company’s 2001 turnover.
This represents a decrease of 1% compared to fiscal 2000, continuing the
trend of slightly decreasing sales that this sector has experienced since the
end of fiscal 1999. However, the company’s power brands. Recorded a
growth rate of 5.3% during fiscal 2001, against the backdrop of a market
whose growth slumped by 9% during the same period.
From its portfolio of over 110 products, HLL has identified 30 brands,
covering key product segments, which contributed to over 75% of the
company’s profits during 2001. Power brands registered a 6.5% growth in
revenue during 2001, although due to the company concentrating on these
products, its other products recorded a 1.1% decrease in growth.
However, concentrating upon these power brands seems logical due to their
high revenue contributions and higher growth in operating profit: power
brands recorded a 9.7% growth, compared to the 8.1% growth registered by
non-power brand products.
The company’s synthetic detergent sales grew by 7% during fiscal 2001,
recording revenues of $411.8 million (Rs. 19.9 billion) and contributing 17%
to the company’s turnover. HLL sold over 891,900 tons of detergent, an
increase of 6.7% compared to a 2000 figure of 835,583, whilst sales of the
company’s power brand detergent, such as Surf, Rin, and Wheel, increased
by 9.2% in a market that decreased by 2% during the year.
HLL tea business contributed 14% the company’s turnover in 2001 with
revenues of $338.2 million (Rs. 16.3 billion), although the division recorded
a 10% decrease in growth during the same fiscal year. Leading brands in the
tea category include Lipton Taaza, A1, Red Label, Taj Mahal and 3 Roses.
Coffee volumes registered a strong 23% growth in 2001, although coffee
revenues demonstrated a slightly lower growth rate of 7%.
Of the company’s other divisions, the largest contribution came from
oils/fats/dairy products with registered sales of $140.8 million (Rs 6.8
billion), a decrease of 7% compared to fiscal 2000.
Who:Keki Dadiseth
What: Selling to rural consumers
Why: To tap into high-growth markets that rivals aren't prepared to enter
Keki Dadiseth, 55, rose quickly through the ranks of Hindustan Lever and
then went on to Unilever headquarters, where he is in charge of home- and
personal-care products worldwide. Here is his agenda for how strategists can
address rural consumers.
Do the math -- and then make the commitment. "Even though developing
markets use small quantities per capita, their huge population means a huge
amount of fabric-washing products, shampoo, and so on. And even if you
make modest profit levels on that, the gross profit can be much more than in
the traditional markets."
Define markets broadly. "Is your goal to get 50% of the shampoo market,
or to increase consumption so that 50% of all 'hair washes' are done with
your shampoo? In India, Lever has a 70% share of the shampoo market. But
we look at total hair washes as our market."
Look at assets, not income. "It may seem as if rural residents have little
money to spare on your products. But a farmer's food is largely free, which
means that he has more money to spare than an urban resident who might
spend 50% of his income on food."
Affordable products aren't always inexpensive to develop. "Most
companies tend to take an existing technology and apply it in a diluted
fashion as they go down the income groups. We turn that logic on its head.
For instance, when we worked with salt, we used atomic-measuring
technology to calibrate how iodine passes through the body so that we can
offer the highest level of iodine delivery in the market. About 75% of the
iodine in salt is wasted. You can either put back that 75% and double the
cost of salt, or you can find a technology that allows consumers to get the
required iodine in their salt without the costly process of adding it back."
Sales volume(unit)
Introduction
Any paid form of non-personal presentation and promotion of goods,
services or ideas by an identified sponsor.
Consumer is the central point of every business. Now a days , attracting and
satisfying customers is more difficult than producing the goods. For every
product many brands are available in the market. Every efforts to attar and to
persuade the persons to purchase his products and services. Advertising is an
important means to influence the potential customers. Companies ranging
from large multinationals corporations to small retailers increasingly rely on
advertising to sell their products and services. Moreover, customers have
also started giving due importance to advertising while making purchase
decisions. Evidence of increasing importance of advertising is clearly
reflected from the increase in advertising expenditure of almost all business
units. Advertising influences consumer attitudes and purchase behavior.
Advertisements increase brand-familiarity, develop brand image and help the
organization in increasing its market share. Advertising is to invest resources
in purchasing time or space in mass media such as T.V., Radio
,newspaper ,magazines that helps to promote the company’s products or
services.
BENEFITS OF ADVERTISING
Benefits to organizations
Benefits To Consumers
Benefits to Distributors and salesmen
Benefits to the Society
Benefits to organizations
Benefits To Consumers
RESEARCH PROBLEM
The first step while conducting a research is to carefully define the research
problem. The present study has been undertaken to analyze the Advertising
Strategies of various brands of HLL and to know about the different
strategies of Companies and what is the reason behind this.
RESEARCH DESIGN
Research design is the blue print to study any problem. It is a plan for
collection, analysis, and interpretation of data in a manner that is relevant to
the research purpose with economy in procedure.
There are three types of research design:
Exploratory
Descriptive
Causative
According to the nature of my research the present study is the Descriptive
Research because of the secondary data and their analysis is done is an
important part of the research.
DATA COLECTION
There are basically two types of data-primary and secondary data.
Primary Data: The data which are collected for the first time and happens to
be original in nature.
Secondary Data: The data which are already been collected by someone else
and which have already passed through statistical process.
In this research Secondary Data is collected through Internet, Journals,
News-paper, Magazines.
Major Products of
HLL
Description of advertisement
house portrait made by a child girl due to which colors of the portrait
get spoiled.
clear his footstep from the portrait due to which the lower part gets
spoiled but the hut does not get spoiled. Then he thought that why the
color of the hut does not get spoiled and then he followed the paint
spots and he finds that the hut is painted by Nerolac Suraksha Exterior
Suraksha Ho To Aisi.”
Features of Advertisement
her painting.
Company’s viewpoint
damaging factors like rain, sunlight, etc. paint quality should be very
protect the exterior walls one should go for Nerolac Suraksha Exterior
Paint
Viewer’s viewpoint
are getting a very clear message from this advertisement that the
Description of Advertisement
relationship among the colors and the emotions of the life. To air this
Bachchan says that it is the color which touches one’s dreams, hopes
Then the second theme is totally focused on the products and the
Rahain Hain.”
Features of Advertisement
colors which include those colors which are directly related to the
Company’s Viewpoint
which are directly related to such emotions like red, yellow, green, etc.
Viewer’s Viewpoint
that they should choose those colors which are related to their
emotions and which Nerolac can provide to them and also regarding to
Rahain Hai
Advertising Strategies
1. Scheduling
Scheduling Methods:
which may mean every day, week or month. The key is that a
periods.
may be no advertising.
2. Time Spots
Nerolac’s time spot strategy which is divided into days and timings
spots as follows:
To 12-4 Noon 25
8-11 Night 55
Days Spot Timings Spot % of ad. Shown
To 12-4 Noon 25
8-11 Night 45
Description of Advertisement
quality of the product as the product name itself describes this theme
some other paint and on the other side same flower is drawn on that wall
Now when a person rub the flower drawing from both the walls, then
flower drawing gets rub successfully from both the walls, but the paint of
that wall which is painted by some other paint also gets spoiled due to
message regarding Berger Rangoli Easy clean paint that,” Daag Asani
after being rubbed paint color remains the same as it was before
rubbing.
Company’s Viewpoint
normally when people try to rub something written on the walls then due
very simple message that to clean the walls without affecting the paint
Viewer’s Viewpoint
Rehta Hai.”
etc.
Berger’s time spot strategy which is divided into days and timings spots
as follows:
To 12-4 Noon 30
To 12-4 Noon 30
8-11 Night 25
Description of Advertisement
the house and when owner meets him then he refused to accept him as
the owner of the house, because his personality does not match with the
describes the features of the product by saying that,” yeh rang dikhta
mehanga hai, aam paint se ded guna jyada phaile, kum dam main
a letter, than the owner initially does not open the door fully but in the
anticipation that the postman has recognized him as owner of the house
he opened the door fully, due to which postman gives the same response
Features of Advertisement
Company’s viewpoint
the doors of those consumers who are highly conscious of price as well as
quality of the product. Here company wants to reduce a notion from the
minds of the consumer that only highly priced product can provide them
saying,” yeh rang dikhta mehanga hai, aam paint se ded guna
Viewer’s viewpoint
viewpoint is concerned than they get a clear message from this particular
advertisement that by using tractor emulsion they can get better quality
Description of Advertisement
The advertisement has shown the mood, the feeling, and the emotions
in the red color i.e. from the walls of the house to the saree the lady is
wearing and the bindi she puts on her forehead. The song that plays at
the back reflects the importance of red color and how it is effective in
changing the mood of the people, as the punch line also stressed on this
a girl and a boy. The basic idea that is reflected in this advertisement is
that each member of the family is in a happy mood. The girl is trying to
wear a yellow saree of her mother and the father and the boy child are
looking at her and smiling while the mother is busy in serving the meal.
So, everyone in the family is in very jolly mood and enjoying their life, as
the punch line also stressing the effect by quoting ,” Pila Hai rang
Khushi Ka.”
Features of Advertisement
Emotional Appeal: These advertisements are totally based on the
life, such as red color has been related with the feeling of love
Company’s Viewpoint
message that how a particular color on the walls of our house reflects our
innermost feelings and emotions, and the message has been conveyed
through the punch line as “Lal hai Rang Pyar Kaa” and “Pila hai Rang
Khushi Ka”
Viewer’s Viewpoint
As far as viewer’s viewpoint is concerned that it is very true that
emotions and feelings greatly influenced the buyers and both the
successful in creating positive mood and feeling about the product and
etc.
Asian Paints time spot strategy which is divided into days and timings
spots as follows:
To 12-4 Noon 20
8-11 Night 70
Days Spot Timings Spot % of ad. Shown
To 12-4 Noon 25
8-11 Night 40
Pepsodent Germicheck
Description of Advertisement
aware that before going to the bed at night they should brush their teeth.
the first theme, a man enters his house and asked his wife by using hand
expressions that where his child is, then his wife replies that he has
already gone to bed then he asks that whether he brush his teeth or not,
Then in the third theme when child’s parent quarrel with each other then
toothpaste.
Features of Advertisement
night so that they can take good care of their precious teeth.
Company’s Viewpoint
parents.
Viewer’s Viewpoint
It is very important for us to brush our teeth at night to take good care of
very clear message that they should brush their teeth as well as make
their children to do the same before going to the bed at night and the
Pepsodent Whitening
Description of Advertisement
The basic theme of this particular advertisement is related to the
‘Pepsodent Whitening’.
very first part of the advertisement, a mother scolds her daughter for
eating ice creams and candies, because due to eating of such things her
viewers regarding the product and its perlite formula to get rid of
yellowness of teeth.
In the last part of the advertisement, advertiser has shown the smiling
faces of the mother and her daughter with white teeth, which gives the
product due to which yellow teeth becomes white as the punch line
that due to the eating of such things like ice creams, candies, etc.
which children often eat, their teeth becomes yellowish which looks
very bad.
Company’s viewpoint
Viewer’s Viewpoint
Pepsodent time spot strategy which is divided into days and timings spots
as follows:
To 12-4 Noon 30
8-11 Night 45
To 12-4 Noon 25
Description of Advertisement
regarding the product and its features in a different singing tone and the
model’s teeth.
Description of Advertisement
pyare gets disturbed because he is not able to attract the others, but he
towards her. By seeing this, he comes to know that it is all due to close-
with the same close-up smile due to which he is also able to influence the
others.
other look very humorous in nature. Also the singing tone of these
between vitamin fluoride and the strong ness and shining factor of
Company’s Viewpoint
variant of close-up.
very much effective for strong ness and shining of the teeth
Viewer’s Viewpoint
rhyming tone and the usage of the humorous characters. Viewers also
Close-Up time spot strategy which is divided into days and timings spots
as follows:
To 12-4 Noon 25
8-11 Night 40
To 12-4 Noon 25
8-11 Night 30
Pie Chart showing time spot strategy of Monday-Friday
Pie Chart showing time spot strategy of Saturday-Sunday
Colgate Advertisement
Description of Advertisement
The theme of this advertisement is basically focusing on the fact that how
This advertisement is divided into three parts. In the first part of the
advertisement, a girl is shown who does not laugh in spite of the best
efforts of the people around her. But her father then realized that she is
Then in the second part, her father make her understand that now she
can get rid of her problem of her teeth by using Colgate and by listening
they can now get new 20gm Colgate pack in just Rs.5
Features of Advertisement
the viewers about the new 20gm pack of Colgate for just Rs.5
focusing on the basic feature of the product i.e. one get rid of the
Company’s Viewpoint
to focus on the basic features of the product i.e. how people can get rid
of their mouth odour and for the same company has portrayed the entire
interesting.
Viewer’s Viewpoint
that how they can get rid of their teeth problems even without visiting
Close-Up time spot strategy which is divided into days and timings spots
as follows:
To 12-4 Noon 30
8-11 Night 40
To 12-4 Noon 30
8-11 Night 30
Pie Chart showing time spot strategy of Monday-Friday
FINDINGS
generally walls are being spoiled by the small children to clean the
(3) Asian Paints focuses on the price and the quality factor.
advertisement is to make the viewers aware that before going to the bed
advertiser.
CONCLUSIONS
CONCLUSIONS
ype of information is provided to the viewers that they can now get new
BIBLIOGRAPHY
Different newspapers
www.asian .co.in
www.berger paints.com
www.nerolac paints.com
www.colgate.co.in
www.pepsodent.com
www.close-up.co.in.