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A PROJECT REPORTON
Hair Care ProductsOf
Hindustan Unilever Limited
Submitted In Partial Fulfillment ofBachelor of Business Administration
( 2009 ndash 2012 )
Under the guidance of Submitted by Miss Supriya Maheshwari Sakshi Sharma (0914701709)
MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT STUDIES
(Affiliated To Guru Gobind Singh Indraprastha University Delhi)PSP Area Sector ndash 22 Rohini Delhi - 110086
TABLE OF CONTENTS
Page No
CHAPTER ndash 1
INTRODUCTION
11 About the Company 7 - 11
12 Corporate Purpose 11
13 People and Culture 11 amp 12
14 Nurturing Talent 12
CHAPTER - 2
RESEARCH METHODOLOGY
21 Introduction 14
22 Research Design 14 amp 15
23 Modes Of Data Collection and Sample Size 16
CHAPTER ndash 3
COMPANY PROFILE
31 Organisation Structure 18
32 Key People of HUL 18 amp 1933 Business Supports 19
34 Distribution Network 19 ndash 22
35 Business Principles 23 - 26
36 Business Categories 26 amp 27
37 Brands 27 - 37
38 Financial Status of HUL 38
39 Problems Faced by HUL 39
CHAPTER - 4
HAIR CARE
41 Sunsilk The hair expert 40 - 43
42 Procter amp Gamble - The Rival 44
43 Pantene 45 - 47
44 Comparison Of Sunsilk and Pantene 47 amp 48
CHAPTER ndash 5
Analysis and Findings 49 - 51
CHAPTER ndash 6
Conclusion 52Suggestions 53
CHAPTER ndash 7
Limitations 54Bibliography 55
STUDENT DECLARATION
This is to certify that I have completed the Summer Project titled ldquo Hair Care Products Of Hindustan Unilever Limitedrdquo under the guidance of ldquo Miss Supriya Maheshwarirdquo in partial fulfillment of the requirement for the award of Degree of Bachelor Of Business Administration at Maharaja Agrasen Institute Of Management Studies Delhi This is an original piece of work and I have not submitted it earlier elsewhere
Date Signature
Place Name University Enrolment Number
CERTIFICATE FROM THE INSTITUTE GUIDE
This is to certify the summer project titled ldquo Hair Care Products Of Hindustan Unilever Limitedrdquo is an academic work done by ldquo Sakshi Sharmardquo submitted in the partial fulfillment of Bachelor Of Business Administration at Maharaja Agrasen Institute Of Management Studies Delhi under my guidance and direction
To the best of my knowledge and belief the data and information presented by her in the project has not been submitted earlier
Signature
Name of faculty
Designation
DIFFERENT PRODUCTS UNDER ONE UMBRELLA
CHAPTER - 1
INTRODUCTION
11 About the Company
12 Corporate Purpose
13 People and Culture
14 Nurturing Talent
OBJECTIVES OF THE PROJECT
To study the perception about the Hair Care products of HUL
To know the level of awareness among consumers about HUL
To study the comparison between HULrsquos hair care product Sunsilk and its competitor Proctor amp Gamblersquos Pantene
EXECUTIVE SUMMARY
Hindustan Unilever Limited (HUL) is Indiarsquos largest Fast Moving Consumer Goods (FMCG) Company This project on HUL tells us about the position of HUL in todayrsquos market scenario Various journals and newspapers have rated it as the consumer household products company and even Indiarsquos most respected company
First and foremost the purpose of HUL has been explained ie to meet the everyday needs of people everywhere
The most valuable asset to any company is the workforce This project shows how these people are acquired and how HUL retains them It also gives a detailed view of the Board and the Management Committee of HUL Next the project explains the Distribution Network of the company ie how this network evolved initially and the way in which it is conducted in the rural markets The focus then shifts to the Rural Marketing and the Relevant Technology used for the purpose
The next phase looks upon the various Business Categories of HUL ie Soaps Detergents Household Care Products Cosmetics Deodrants amp Fragrances Following this are the Brands of HUL shown in detail in a convenient format
The project further highlights on the Financial News Exports Mergers amp Acquisitions Achievements and the Latest Developments of HUL
Finally we move to our areas of major concern ndash the Hair Care products of HUL Sunsilk Shampoo has taken as the area for research and it is compared with Pantene Shampoo of Procter amp Gamble
HINDUSTAN UNILEVER LIMITEDMeeting Everyday Needs of People Everywhere
21 ABOUT THE COMPANY
Hindustan Unilever Limited (HUL) is Indiarsquos largest fast moving consumer goods company with leadership in Home amp Personal Care Products and Foods amp Beverages HULrsquos brands spread across 20 distinct consumer categories touch the lives of two out of three Indians They endow the company with a scale of combined volumes of about 4 million tones and sales of Rs10000 crores The leading business magazine Forbes Global has rated HUL as the best consumer household products company Leading national publications like The Economic Times Business World amp Business Today have also rated HUL as one of Indiarsquos most respected companies amp the number one in Market Value Added amp EVA
Hindustan Unilever Limited
Type Public company BSEHUL
Industry Fast Moving Consumer Goods (FMCG)
Founded 1933
Headquarters Mumbai India
Key peopleHarish Manwani (Chairman) Nitin Paranjpe (CEO and Managing Director)
Products Home amp Personal Care Foods Water Purifier
Revenue Rs 2086957 crore (US$ 453 billion) (2008-2009)
Employees Over 65000 direct amp indirect employees
Parent Unilever Plc
22 CORPORATE PURPOSE
The purpose of Hindustan Unilever Limited (HUL) is to meet the everyday needs of people of everywhere ndash to anticipate the aspirations of the consumers and to respond creatively and competitively with branded products and services which raise the quality of life The deep roots in local cultures and markets around the world are their unparalleled inheritance and the foundation for their future growth HUL would bring their wealth of knowledge and international expertise to the local customers ndash a truly multi ndash local multinational
The long-term success of HUL requires a total commitment to exceptional standards of performance and productivity to working together effectively and to a willingness to embrace new ideas and learn continuously
They believe that to succeed requires the highest standards of corporate behavior towards employees consumers and the societies and world in which we live
This is HULrsquos road to sustainable profitable growth for their business and long term value creation for their shareholders and employees
23 PEOPLE amp CULTURE
The story of Hindustan Unilever Limited has been chronicle of attracting holding and moulding the finest talent in India and abroad to shape an institution that stands today for the highest standards of quality innovation and service to the consumer and the country HULrsquos people have flourished in an environment marked by fairness the belief that even perfection can be improved upon and the assurance that all you need is merit in order to progress That has proved a
fertile soil indeed for it has bred people whose caliber has changed the quality of millions of Indian consumerrsquos lives
As HULrsquos Chairman Nitin Paranjpe says ldquo We are because of our values ndash truth action courage caring rdquo
24 NURTURING TALENT
Management development amp training in Hindustan Unilever Limited
A peoplersquos company
A company is nothing but the collective intellect of its people Business growth can only take place through people growth And the more a company harnesses the potential of its people the faster it will grow Equally the faster it grows the more opportunities it can create to excite and retain talent HUL has recognized this since their inception People development has always been central to HUL and its business strategy The stretch in brands reflects the stretch in peoplersquos minds The technological feats it has accomplished reflect its peoplersquos ingenuity in deriving innovations from science The value it has extracted from capital corresponds to the value its people have added to to business processes To achieve its full potential it should continue to empower its people to stretch their minds ingenuity and abilities
The Genesis
Unilever is a multilocal ndash multinational and believes that if a company has to grow its management must instinctively understand local consumer needs and aspirations
Thus the focus is on grooming managers from within the country
Nurturing top talent
To develop and retain top talent HUL have put in place a process that helps identify potential business leaders much earlier in their careers they are then placed on a fast track of personal growth
We are already creating substantially opportunities for entrepreneurial leadership for managers through far- reaching changes to the organization specially disaggregating into smaller independent business units to bring about a greater focus on growth The aim is to provide substantial business leadership opportunities for managers as and when they are ready as opposed to when they reach a certain level of seniority
OBJECTIVES OF HINDUSTAN UNILEVER LIMITED
HUL recognizes that its consumers have a sincere and legitimate interest in the
behaviour beliefs and actions of the Company behind brands in which they place
their trust and that without its consumers the Company would not exist
HUL believes that as a general rule legislation is the most effective safeguard of
responsible conduct although in certain areas additional guidance to staff in the
form of voluntary business principles is beneficial in order to ensure that the
highest standards are met throughout the organization
HUL is conscious of the fact that the success of a corporation is a reflection of the
professionalism conduct and the responsible attitude of its management and
employees Therefore recruitment of the right people and ongoing training and
development are crucial
HUL continues to maintain its commitment to follow and respect all applicable
local laws in each of its divisions
CHAPTER - 2
RESEARCH METHODOLOGY
21 Introduction
22 Research Design
23 Modes Of Data Collection and Sample Size
RESEARCH METHODOLOGY
The purpose of the project is to compare the hair care products of Hindustan Unilever Limited and Procter amp Gamble
The data was collected with the help of secondary sources
Secondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
21 INTRODUCTION
Research is a careful critical enquiry in seeking facts and diligent investigation in order to ascertain something For formulating a significant research problem the researcher should try to acquire as much knowledge of the area in which research is to be done as possible The researcher must be fully aware of the environment to which the difficulty pertains
It refers to the method adopted to collect the relevant data and other information which forms the basis of the research writing So for the effective writing of the thesis of the report the data must be quality oriented
22 RESEARCH DESIGN
Research Design is the structure of research It is the glue that holds all of the elements in a research project together This project enables summarization of a complex structure of HUL efficiently
This research design provides answers to following questions
a) What technique have been used to collect the data b) What kind of sampling have been used in this project c) How the data have been analyzed
RESEARCH DESIGN OF THE PROJECT
The research design adopted for this project is ldquo Descriptive Researchrdquo which provides an accurate snapshot of some aspect of market environment It helps in providing information about HUL and its products and services keeping in mind the changing market scenario Its features are
The objective of such a study is to answer the who what when where when and have of the subject under investigation
Descriptive studies are well ndash structured
This study tends to be rigid and its approach cannot be changed every now and then
23 MODES OF DATA COLLECTION amp SAMPLE SIZE
Data has been collected with the help of secondary sourcesSecondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
Magazines Newspapers Company Literature Websites
CHAPTER - 3
COMPANY PROFILE 31 Organisation Structure
32 Key People of HUL
33 Business Supports
34 Distribution Network
35 Business Categories
36 Brands
37 Financial Status of HUL
38 Problems Faced by HUL
31 ORGANIZATION STRUCTURE
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods (FMCG) Company It is present in Home amp Personal Care and Foods amp Beverages categories HUL and Group companies have about 41000 employees including 1550 managers
The fundamental principle determining the organization structure is to infuse speed and flexibility in decision making and implementation with empowered managers across the companyrsquos nationwide operations For this HUL is organized into self ndash sufficient profit centers supported by certain central functions and resources to leverage economies of scale wherever relevant
32 Key People Of HUL
The Board of Directors as repositories of the corporate powers act as a guardian to the Company as also the protectors of shareholderrsquos interest
This Apex body comprises of a Non- Executive Chairman four whole time Directors and five Independent Non ndash Executive Directors The Board of the Company represents the optimum mix of professionalism knowledge and experience
Mr Harish Manwani - CHAIRMAN
Mr Harish Manwani (55) assumed charge as NON ndash Executive Chairman of the company with effect from 1st july 2005
Mr Nitin Paranjpe - CEO and Managing Director
Mr Nitin Paranjpe (46) after obtaining degree in BE (Mechanical) and MBA in marketing joined the company as a management trainee in 1987
Mr RShridhar - Chief Financial Officer
Mr Shridhar Ramamurthy (45) is a Chartered Accountant (Gold Medalist) as well as Cost Accountant and Company Secretary in HUL
33 BUSINESS SUPPORTS
Hindustan Unilever Limited is regarded as one of Indiarsquos most admired companies
It is not only the brands and the people but it is also the support systems Its Research Center is the largest private sector industrial research laboratory of its kind in India HULrsquos enviable reach in the remote heartland makes its distribution web the largest of its kind in India
34 DISTRIBUTION NETWORK
Distribution systemrsquos focus to enable easy access to their brands touch consumers with a three ndash way convergence - of product availability brand communication and higher levels of brand experience
WHAT DITRIBUTION SYSTEM SHOULD DO
The most obvious function of providing the logistics support to get the companyrsquos product to the end customer Another established role is that of fina ncing The channel partners are expected to extend credit to the next level of customers Some channelmembers however also receive credit and the net credit extended is minimal
To meet the ever ndash changing needs of the consumer HUL has set up a distribution network that ensures availability of all its products in all outlets at all the times This includes maintaining favourable trade relations providing innovative incentives to retailers and organizing demand generation activities among a host of other things
Furthermore although the distribution system is common across most businesses each of the businesses has over the years fine ndash tuned the system to meet their objectives The differences therefore lie in the manner businesses use an existing distribution network and the channel players involved therein to improve their reach and service to their customers and end users For instance the distribution
model for detergents personal products and beverages are quite different from each other due to various factors
Similarly the success stories of urban markets cannot necessarily be replicated in rural markets
The evolution of HULrsquos distribution network
The evolution of HULrsquos distribution network The first place of the HUL distribution network had wholesalers placing bulk orders directly with the company Large retailers also placed direct orders which comprised almost 30 of the total orders collected
a) HULs products are distributed through a network of about 7000 redistribution stockists covering about one million retailoutlets
b) The general trade comprises grocery stores chemists wholesale kiosks and general stores
c) Hindustan Unilever provide tailor made services to each of its channel partners
d) HUL is using the point of purchase method for much higher level of direct contact through in ndash store facilitators sampling education and experience
The company salesman grouped all these orders and placed an indent with the Head Office Goods were sent to these markets with the company salesman as the consignee The salesman then collected and distributed the products to the respective wholesalers against cash payment and the money was remitted to the company
The focus of the second phase which spanned the decades of the 40s was to provide desired products and quality service to the companyrsquos customers In order to achieve this one wholesaler in each market was appointed as a ldquo Registered Wholesalerrdquo ( RW) a stock point for the companyrsquos products in that market The company salesman still covered the market canvassing for orders from the rest of the trade He would then distribute stocks from the RW through distribution units maintained by the company The RW system therefore increased the distribution reach of the company to a larger number of customers
The highlight of the third phase was the concept of ldquoRedistribution Stockistrdquo ( RS ) who replaced the RWs The RS was required to provide the distribution units to the company salesman The RS financed his stocks and provided warehousing facilities to store them The RS also undertook demand stimulation activities on behalf of the company The second characteristic of this period we realized that the RS would be able to provide customer service only if he was serviced well This knowledge led to the establishment of the ldquo Company Depotsrdquo system This system helped in transshipment bulk breaking and as a stock point to minimize stock ndash outs at the RS level
In the recent past a significant change has been the replacement of the Company Depot by a system of third party Carrying and Forwarding Agents ( CampFAs ) The CampFAs act as buffer stock ndash points to ensure that stock ndash outs did not take place The CampFA system has also resulted in cost savings in terms of direct transportation and reduced time lag in delivery The most important benefit has been improved customer service to the RS
DISTRIBUTION AT VILLAGES ( RURAL MARKETS )
The company has brought all markets with populations of below 50000 under one rural sales organization
The team comprises an exclusive sales force and exclusive redistribution stockists
The team focuses on building superior availability of products
In rural India the network directly covers about 50000 villages reaching 250 million consumers through 6000 sub - stockists
DISTRIBUTION AT THE SUPERMARKETS
HUL has set up a full ndash scale sales organization for this channel to serve modern retailing outlets
Product tests and in ndash store sampling is provided to consumers
HARNESSING INFORMATION TECHNOLOGY
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
The objective is to make the product available at the right place and right time in the most cost effective manner
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
For this stockists have been connected through an Internet-based network called RS Net for online interaction
RS Net is part of Project Leap HULs end ndash to - end supply chain
PIONEERING NEW CHANNELS
HUL is simultaneously creating new channels designed on the same principal of holistic contact with customers
1) Project Shakti HULs partnership with Self Help Groups of rural women Started in 2001 Project Shakti has already been extended to about 50000 villages in 12 states - Andhra Pradesh Karnataka Gujarat and others
2) HINDUSTAN UNILEVER NETWORK ( HUN) it is the companyrsquos arm in the Direct Selling channel It represents a range of customized offerings in Home amp Personal Care and Foods
3) Out - Of -Home this deals in providing vending machines for hot beverages like tea coffee
4) Health and Beauty Services Lakme saloons provide specialized beauty services and solutions under the recognized authority of Lakme brand The Ayush Therapy Centers provide easy access to authentic Ayurvedic treatment and products
BUSINESS PRINCIPLES
People first
Employees people and products are more important at Hindustan Unilever Limited
than systems Systems and methods while necessary and valuable in running a complex
organization should remain managerial and operational aids but should not become ends
in themselves It is a question of priorities A strong orientation toward human beings
employees and executives is a decisive if not the decisive component of long-term
success
Quality products
Our focus is on products The ultimate justification for a company is its ability to offer
products that are appealing because of their quality convenience variety and price --
products that can stand their ground even in the face of fierce competition
Long-term view
HULmakes clear distinction between strategy and tactics It gives priority to the long-
range view Long-term thinking defuses many of the conflicts and contentions among
groups this applies to employment conditions and relations with employees as well as to
the conflicts and opposing interests of the trade and the industry Of course our ability to
focus on long-term considerations is only possible if the company is successful in the
struggle for short-term survival This is why HUL strives to maintain a satisfactory level
of profits every year
Uniformity
A very important concern at HUL has to do with uniformity how consistent HULrsquos
principles policies rules of conduct and strategies should be and to what extent they
should differ depending on the country subsidiary region branch or group of products
In general HUL tries to limit the uniformity of its policy to a requisite minimum
Diversification
HUL does not want to become either a conglomerate or a portfolio manager
HUListoperate only those businesses about which it has some special knowledge and
expertise HUL is a global company not a conglomerate hodgepodge We regard
acquisitions and efforts at diversification as logical ways to supplement our business but
only in the context of a carefully considered corporate marketing policy
Flexibility and simplicity
The publics sense of the power and size of a corporation is often inaccurate for a
companys power is limited by a host of factors including legislation competition
regulatory bodies and publicity From a business point of view it is desirable for
a firm to achieve the size best suited to a specific industry or mode of
production To be competitive internationally and make significant investments in
research and technology a larger company has an advantage From a strictly
organizational point of view flexible simple structures work best and excessively
large units should be avoided whenever possible In both respects HUL has a natural
advantage Although it is a big company it is spread out over many countries and
each of HULs factories has its own management and responsibility
Packaging
Manufacturing comprises all unit operations necessary to transform perishable raw
materials into finished products with the aim to make them safe and convenient
for the consumers The manufacturing activities of the HUL
respect natural resources by efficient use of raw materials and energy
minimize waste generation and emissions
ensure environmentally safe disposal of all waste which cannot be recycled
Regular assessments of processing practices are carried out These assessments
include
evaluation of individual plant performance with regard to operations which
have an impact on the environment
definition of targets for improvement
review of plant compliance with local government regulations company
environmental standards as well as results achieved in comparison with
targets for improvement
full investigation of incidents which may affect the environment
Information on developments in environmental protection technology and practices is
disseminated as required to ensure that all plants are using the most effective
environmental practices for their type of processing This applies also for co
packers
Marketing and distribution
Marketing is based on the principle of satisfying consumer needs This is the
foundation also for the environmental marketing approach of HUL
Environmental product claims in advertising promotional material and on
packaging are in accordance with legal requirements based on solid scientific
evidence and used in a serious and reasonable manner
Our aim is to minimize wastage in communication publicity and promotional
material in particular through more precise targeting of marketing activities
Consumer promotions and merchandising material such as consumer offers in store
promotions display material leaflets printed matter etc take environmental aspects
into account
This means due consideration of environmental impact in selecting both materials
and printing methods
In distribution energy efficient and pollution controlled methods are encouraged
wherever possible
Legislation and Regulations
It is the policy of the HUL to strictly comply with all laws and regulations
relevant to our activities We participate in discussions on food legislation and
regulations between international organizations government representatives industry
the scientific world and consumer associations We also apply this policy to
environment related matters
In doing so we cooperate with legislators through local industry associations in
order to promote laws and regulations in the field of environment which are
reasonable rational realistic applicable and enforceable We oppose unjustified bans
and any other discriminatory measures
35 BUSINESS CATEGORIES
HULrsquos purpose is to meet the everyday needs of people everywhere This vision has made HUL Indiarsquos largest Packaged Mass Consumption Goods Company with leadership in Home and Personal Care Products and Foods and BeveragesIt is the countryrsquos largest marketer of Soaps Detergents and Household Care productsIts expertise in Personal Products makes it the leader in Shampoos Skin Care Products Color Cosmetics Deodorants and Fragrances
In Foods and Beverages HUL remains the undisputed market leader in Tea Processed Coffee Branded Wheat Flour Tomato Products Ice Cream Jams and squashes
In New Ventures the new entrants are in Healthcare Confectioners and Network Marketing
HUL is also one of the countryrsquos biggest exporters and has earned the distinction of a Super Star Trading House Its Exports Division is a net foreign exchange earner Among the Exports are branded Soaps and Detergents Personal Products Tea amp Coffee Basmati Rice Castor Oil and its Derivatives
36 THE BRANDS
The formulation of branding strategies starts from the building a sustainable brand for the
company This is so as the consumers buy the brand not only for the intrinsic values
associated with it but also because of the promise that branding makes to the
consumerhellipthe promise of delivering values beyond expectation A framework is
suggested below for the formulation of a brand strategy-
1 Experiential marketing
The first component of branding strategy is the experiential marketing It is a well known
fact that the customers demand experiences instead of products or services This creates a
challenge to the organizations to find new ways to involve the customers in the value
chain so that they themselves can decide the product features and uniqueness that they
expect from the brand They want to know more about the details of the brand They
remove the shells and get into the core of the processes to understand the real value of the
brand Hence such a strategy should be framed that makes the consumers involvement
higher
2 Effective Branding
It is found that effective branding involves working on four important dimensions
namely
bull The Functional Dimension- The functional dimension concerns the perception of
benefit of the product or service associated with the brand
bull The Social Dimension- The Social Dimension concern the ability to create
identification with the group
bull The Spiritual Dimension- The Spiritual Dimension is the perception of global or
local responsibility
bull The Mental Dimension- The Mental Dimension is the ability to support the
individual mentally
3 Novel Brand Strategies
bull Customers Own the Brand- It should always be kept in mind that it is the consumers
who own the brand
bull Product Service- A sale should never be considered the ending of a transaction but the
beginning of a beautiful relationship Customer service basically creates a positive effect
on the minds of the customer and this positive influence on the mind of the consumer
makes them more open to new ideas and reduces their skeptic towards the brand
bull Buzz Marketing- The development in the technology used in the country has lead to
the increased importance paid to the concept of buzz marketing Branding increasingly
nowadays is moving into Internet-based applications
bull Religious Branding- since it is considered that religion has the power to bind people
and unify them under one common ideal an effective brand strategy must take into
account this powerful force which plays on the minds of the Indian consumers
4 Feedback and Improvements
It is very crucial to have the consumer participation In order to succeed in the long run it is crucial to allow the consumer participation at an intermediary stage of developing the product This will lead to creation of a better relationship between the company and its consumer
MARKETING STRATEGIES
Hindustan Unilever Limited has adopted a four pronged growth strategy -
1 Gunning the market with new products and brand extensions
2 Expansion of the distribution network to small towns for extensive
availability
3 Reduce prices and introduce smaller packages for products to
make them more affordable (a tool to enter price sensitive markets)
4 Focus on employ training and develop a positive attitude through
enhanced manpower development
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
TABLE OF CONTENTS
Page No
CHAPTER ndash 1
INTRODUCTION
11 About the Company 7 - 11
12 Corporate Purpose 11
13 People and Culture 11 amp 12
14 Nurturing Talent 12
CHAPTER - 2
RESEARCH METHODOLOGY
21 Introduction 14
22 Research Design 14 amp 15
23 Modes Of Data Collection and Sample Size 16
CHAPTER ndash 3
COMPANY PROFILE
31 Organisation Structure 18
32 Key People of HUL 18 amp 1933 Business Supports 19
34 Distribution Network 19 ndash 22
35 Business Principles 23 - 26
36 Business Categories 26 amp 27
37 Brands 27 - 37
38 Financial Status of HUL 38
39 Problems Faced by HUL 39
CHAPTER - 4
HAIR CARE
41 Sunsilk The hair expert 40 - 43
42 Procter amp Gamble - The Rival 44
43 Pantene 45 - 47
44 Comparison Of Sunsilk and Pantene 47 amp 48
CHAPTER ndash 5
Analysis and Findings 49 - 51
CHAPTER ndash 6
Conclusion 52Suggestions 53
CHAPTER ndash 7
Limitations 54Bibliography 55
STUDENT DECLARATION
This is to certify that I have completed the Summer Project titled ldquo Hair Care Products Of Hindustan Unilever Limitedrdquo under the guidance of ldquo Miss Supriya Maheshwarirdquo in partial fulfillment of the requirement for the award of Degree of Bachelor Of Business Administration at Maharaja Agrasen Institute Of Management Studies Delhi This is an original piece of work and I have not submitted it earlier elsewhere
Date Signature
Place Name University Enrolment Number
CERTIFICATE FROM THE INSTITUTE GUIDE
This is to certify the summer project titled ldquo Hair Care Products Of Hindustan Unilever Limitedrdquo is an academic work done by ldquo Sakshi Sharmardquo submitted in the partial fulfillment of Bachelor Of Business Administration at Maharaja Agrasen Institute Of Management Studies Delhi under my guidance and direction
To the best of my knowledge and belief the data and information presented by her in the project has not been submitted earlier
Signature
Name of faculty
Designation
DIFFERENT PRODUCTS UNDER ONE UMBRELLA
CHAPTER - 1
INTRODUCTION
11 About the Company
12 Corporate Purpose
13 People and Culture
14 Nurturing Talent
OBJECTIVES OF THE PROJECT
To study the perception about the Hair Care products of HUL
To know the level of awareness among consumers about HUL
To study the comparison between HULrsquos hair care product Sunsilk and its competitor Proctor amp Gamblersquos Pantene
EXECUTIVE SUMMARY
Hindustan Unilever Limited (HUL) is Indiarsquos largest Fast Moving Consumer Goods (FMCG) Company This project on HUL tells us about the position of HUL in todayrsquos market scenario Various journals and newspapers have rated it as the consumer household products company and even Indiarsquos most respected company
First and foremost the purpose of HUL has been explained ie to meet the everyday needs of people everywhere
The most valuable asset to any company is the workforce This project shows how these people are acquired and how HUL retains them It also gives a detailed view of the Board and the Management Committee of HUL Next the project explains the Distribution Network of the company ie how this network evolved initially and the way in which it is conducted in the rural markets The focus then shifts to the Rural Marketing and the Relevant Technology used for the purpose
The next phase looks upon the various Business Categories of HUL ie Soaps Detergents Household Care Products Cosmetics Deodrants amp Fragrances Following this are the Brands of HUL shown in detail in a convenient format
The project further highlights on the Financial News Exports Mergers amp Acquisitions Achievements and the Latest Developments of HUL
Finally we move to our areas of major concern ndash the Hair Care products of HUL Sunsilk Shampoo has taken as the area for research and it is compared with Pantene Shampoo of Procter amp Gamble
HINDUSTAN UNILEVER LIMITEDMeeting Everyday Needs of People Everywhere
21 ABOUT THE COMPANY
Hindustan Unilever Limited (HUL) is Indiarsquos largest fast moving consumer goods company with leadership in Home amp Personal Care Products and Foods amp Beverages HULrsquos brands spread across 20 distinct consumer categories touch the lives of two out of three Indians They endow the company with a scale of combined volumes of about 4 million tones and sales of Rs10000 crores The leading business magazine Forbes Global has rated HUL as the best consumer household products company Leading national publications like The Economic Times Business World amp Business Today have also rated HUL as one of Indiarsquos most respected companies amp the number one in Market Value Added amp EVA
Hindustan Unilever Limited
Type Public company BSEHUL
Industry Fast Moving Consumer Goods (FMCG)
Founded 1933
Headquarters Mumbai India
Key peopleHarish Manwani (Chairman) Nitin Paranjpe (CEO and Managing Director)
Products Home amp Personal Care Foods Water Purifier
Revenue Rs 2086957 crore (US$ 453 billion) (2008-2009)
Employees Over 65000 direct amp indirect employees
Parent Unilever Plc
22 CORPORATE PURPOSE
The purpose of Hindustan Unilever Limited (HUL) is to meet the everyday needs of people of everywhere ndash to anticipate the aspirations of the consumers and to respond creatively and competitively with branded products and services which raise the quality of life The deep roots in local cultures and markets around the world are their unparalleled inheritance and the foundation for their future growth HUL would bring their wealth of knowledge and international expertise to the local customers ndash a truly multi ndash local multinational
The long-term success of HUL requires a total commitment to exceptional standards of performance and productivity to working together effectively and to a willingness to embrace new ideas and learn continuously
They believe that to succeed requires the highest standards of corporate behavior towards employees consumers and the societies and world in which we live
This is HULrsquos road to sustainable profitable growth for their business and long term value creation for their shareholders and employees
23 PEOPLE amp CULTURE
The story of Hindustan Unilever Limited has been chronicle of attracting holding and moulding the finest talent in India and abroad to shape an institution that stands today for the highest standards of quality innovation and service to the consumer and the country HULrsquos people have flourished in an environment marked by fairness the belief that even perfection can be improved upon and the assurance that all you need is merit in order to progress That has proved a
fertile soil indeed for it has bred people whose caliber has changed the quality of millions of Indian consumerrsquos lives
As HULrsquos Chairman Nitin Paranjpe says ldquo We are because of our values ndash truth action courage caring rdquo
24 NURTURING TALENT
Management development amp training in Hindustan Unilever Limited
A peoplersquos company
A company is nothing but the collective intellect of its people Business growth can only take place through people growth And the more a company harnesses the potential of its people the faster it will grow Equally the faster it grows the more opportunities it can create to excite and retain talent HUL has recognized this since their inception People development has always been central to HUL and its business strategy The stretch in brands reflects the stretch in peoplersquos minds The technological feats it has accomplished reflect its peoplersquos ingenuity in deriving innovations from science The value it has extracted from capital corresponds to the value its people have added to to business processes To achieve its full potential it should continue to empower its people to stretch their minds ingenuity and abilities
The Genesis
Unilever is a multilocal ndash multinational and believes that if a company has to grow its management must instinctively understand local consumer needs and aspirations
Thus the focus is on grooming managers from within the country
Nurturing top talent
To develop and retain top talent HUL have put in place a process that helps identify potential business leaders much earlier in their careers they are then placed on a fast track of personal growth
We are already creating substantially opportunities for entrepreneurial leadership for managers through far- reaching changes to the organization specially disaggregating into smaller independent business units to bring about a greater focus on growth The aim is to provide substantial business leadership opportunities for managers as and when they are ready as opposed to when they reach a certain level of seniority
OBJECTIVES OF HINDUSTAN UNILEVER LIMITED
HUL recognizes that its consumers have a sincere and legitimate interest in the
behaviour beliefs and actions of the Company behind brands in which they place
their trust and that without its consumers the Company would not exist
HUL believes that as a general rule legislation is the most effective safeguard of
responsible conduct although in certain areas additional guidance to staff in the
form of voluntary business principles is beneficial in order to ensure that the
highest standards are met throughout the organization
HUL is conscious of the fact that the success of a corporation is a reflection of the
professionalism conduct and the responsible attitude of its management and
employees Therefore recruitment of the right people and ongoing training and
development are crucial
HUL continues to maintain its commitment to follow and respect all applicable
local laws in each of its divisions
CHAPTER - 2
RESEARCH METHODOLOGY
21 Introduction
22 Research Design
23 Modes Of Data Collection and Sample Size
RESEARCH METHODOLOGY
The purpose of the project is to compare the hair care products of Hindustan Unilever Limited and Procter amp Gamble
The data was collected with the help of secondary sources
Secondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
21 INTRODUCTION
Research is a careful critical enquiry in seeking facts and diligent investigation in order to ascertain something For formulating a significant research problem the researcher should try to acquire as much knowledge of the area in which research is to be done as possible The researcher must be fully aware of the environment to which the difficulty pertains
It refers to the method adopted to collect the relevant data and other information which forms the basis of the research writing So for the effective writing of the thesis of the report the data must be quality oriented
22 RESEARCH DESIGN
Research Design is the structure of research It is the glue that holds all of the elements in a research project together This project enables summarization of a complex structure of HUL efficiently
This research design provides answers to following questions
a) What technique have been used to collect the data b) What kind of sampling have been used in this project c) How the data have been analyzed
RESEARCH DESIGN OF THE PROJECT
The research design adopted for this project is ldquo Descriptive Researchrdquo which provides an accurate snapshot of some aspect of market environment It helps in providing information about HUL and its products and services keeping in mind the changing market scenario Its features are
The objective of such a study is to answer the who what when where when and have of the subject under investigation
Descriptive studies are well ndash structured
This study tends to be rigid and its approach cannot be changed every now and then
23 MODES OF DATA COLLECTION amp SAMPLE SIZE
Data has been collected with the help of secondary sourcesSecondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
Magazines Newspapers Company Literature Websites
CHAPTER - 3
COMPANY PROFILE 31 Organisation Structure
32 Key People of HUL
33 Business Supports
34 Distribution Network
35 Business Categories
36 Brands
37 Financial Status of HUL
38 Problems Faced by HUL
31 ORGANIZATION STRUCTURE
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods (FMCG) Company It is present in Home amp Personal Care and Foods amp Beverages categories HUL and Group companies have about 41000 employees including 1550 managers
The fundamental principle determining the organization structure is to infuse speed and flexibility in decision making and implementation with empowered managers across the companyrsquos nationwide operations For this HUL is organized into self ndash sufficient profit centers supported by certain central functions and resources to leverage economies of scale wherever relevant
32 Key People Of HUL
The Board of Directors as repositories of the corporate powers act as a guardian to the Company as also the protectors of shareholderrsquos interest
This Apex body comprises of a Non- Executive Chairman four whole time Directors and five Independent Non ndash Executive Directors The Board of the Company represents the optimum mix of professionalism knowledge and experience
Mr Harish Manwani - CHAIRMAN
Mr Harish Manwani (55) assumed charge as NON ndash Executive Chairman of the company with effect from 1st july 2005
Mr Nitin Paranjpe - CEO and Managing Director
Mr Nitin Paranjpe (46) after obtaining degree in BE (Mechanical) and MBA in marketing joined the company as a management trainee in 1987
Mr RShridhar - Chief Financial Officer
Mr Shridhar Ramamurthy (45) is a Chartered Accountant (Gold Medalist) as well as Cost Accountant and Company Secretary in HUL
33 BUSINESS SUPPORTS
Hindustan Unilever Limited is regarded as one of Indiarsquos most admired companies
It is not only the brands and the people but it is also the support systems Its Research Center is the largest private sector industrial research laboratory of its kind in India HULrsquos enviable reach in the remote heartland makes its distribution web the largest of its kind in India
34 DISTRIBUTION NETWORK
Distribution systemrsquos focus to enable easy access to their brands touch consumers with a three ndash way convergence - of product availability brand communication and higher levels of brand experience
WHAT DITRIBUTION SYSTEM SHOULD DO
The most obvious function of providing the logistics support to get the companyrsquos product to the end customer Another established role is that of fina ncing The channel partners are expected to extend credit to the next level of customers Some channelmembers however also receive credit and the net credit extended is minimal
To meet the ever ndash changing needs of the consumer HUL has set up a distribution network that ensures availability of all its products in all outlets at all the times This includes maintaining favourable trade relations providing innovative incentives to retailers and organizing demand generation activities among a host of other things
Furthermore although the distribution system is common across most businesses each of the businesses has over the years fine ndash tuned the system to meet their objectives The differences therefore lie in the manner businesses use an existing distribution network and the channel players involved therein to improve their reach and service to their customers and end users For instance the distribution
model for detergents personal products and beverages are quite different from each other due to various factors
Similarly the success stories of urban markets cannot necessarily be replicated in rural markets
The evolution of HULrsquos distribution network
The evolution of HULrsquos distribution network The first place of the HUL distribution network had wholesalers placing bulk orders directly with the company Large retailers also placed direct orders which comprised almost 30 of the total orders collected
a) HULs products are distributed through a network of about 7000 redistribution stockists covering about one million retailoutlets
b) The general trade comprises grocery stores chemists wholesale kiosks and general stores
c) Hindustan Unilever provide tailor made services to each of its channel partners
d) HUL is using the point of purchase method for much higher level of direct contact through in ndash store facilitators sampling education and experience
The company salesman grouped all these orders and placed an indent with the Head Office Goods were sent to these markets with the company salesman as the consignee The salesman then collected and distributed the products to the respective wholesalers against cash payment and the money was remitted to the company
The focus of the second phase which spanned the decades of the 40s was to provide desired products and quality service to the companyrsquos customers In order to achieve this one wholesaler in each market was appointed as a ldquo Registered Wholesalerrdquo ( RW) a stock point for the companyrsquos products in that market The company salesman still covered the market canvassing for orders from the rest of the trade He would then distribute stocks from the RW through distribution units maintained by the company The RW system therefore increased the distribution reach of the company to a larger number of customers
The highlight of the third phase was the concept of ldquoRedistribution Stockistrdquo ( RS ) who replaced the RWs The RS was required to provide the distribution units to the company salesman The RS financed his stocks and provided warehousing facilities to store them The RS also undertook demand stimulation activities on behalf of the company The second characteristic of this period we realized that the RS would be able to provide customer service only if he was serviced well This knowledge led to the establishment of the ldquo Company Depotsrdquo system This system helped in transshipment bulk breaking and as a stock point to minimize stock ndash outs at the RS level
In the recent past a significant change has been the replacement of the Company Depot by a system of third party Carrying and Forwarding Agents ( CampFAs ) The CampFAs act as buffer stock ndash points to ensure that stock ndash outs did not take place The CampFA system has also resulted in cost savings in terms of direct transportation and reduced time lag in delivery The most important benefit has been improved customer service to the RS
DISTRIBUTION AT VILLAGES ( RURAL MARKETS )
The company has brought all markets with populations of below 50000 under one rural sales organization
The team comprises an exclusive sales force and exclusive redistribution stockists
The team focuses on building superior availability of products
In rural India the network directly covers about 50000 villages reaching 250 million consumers through 6000 sub - stockists
DISTRIBUTION AT THE SUPERMARKETS
HUL has set up a full ndash scale sales organization for this channel to serve modern retailing outlets
Product tests and in ndash store sampling is provided to consumers
HARNESSING INFORMATION TECHNOLOGY
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
The objective is to make the product available at the right place and right time in the most cost effective manner
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
For this stockists have been connected through an Internet-based network called RS Net for online interaction
RS Net is part of Project Leap HULs end ndash to - end supply chain
PIONEERING NEW CHANNELS
HUL is simultaneously creating new channels designed on the same principal of holistic contact with customers
1) Project Shakti HULs partnership with Self Help Groups of rural women Started in 2001 Project Shakti has already been extended to about 50000 villages in 12 states - Andhra Pradesh Karnataka Gujarat and others
2) HINDUSTAN UNILEVER NETWORK ( HUN) it is the companyrsquos arm in the Direct Selling channel It represents a range of customized offerings in Home amp Personal Care and Foods
3) Out - Of -Home this deals in providing vending machines for hot beverages like tea coffee
4) Health and Beauty Services Lakme saloons provide specialized beauty services and solutions under the recognized authority of Lakme brand The Ayush Therapy Centers provide easy access to authentic Ayurvedic treatment and products
BUSINESS PRINCIPLES
People first
Employees people and products are more important at Hindustan Unilever Limited
than systems Systems and methods while necessary and valuable in running a complex
organization should remain managerial and operational aids but should not become ends
in themselves It is a question of priorities A strong orientation toward human beings
employees and executives is a decisive if not the decisive component of long-term
success
Quality products
Our focus is on products The ultimate justification for a company is its ability to offer
products that are appealing because of their quality convenience variety and price --
products that can stand their ground even in the face of fierce competition
Long-term view
HULmakes clear distinction between strategy and tactics It gives priority to the long-
range view Long-term thinking defuses many of the conflicts and contentions among
groups this applies to employment conditions and relations with employees as well as to
the conflicts and opposing interests of the trade and the industry Of course our ability to
focus on long-term considerations is only possible if the company is successful in the
struggle for short-term survival This is why HUL strives to maintain a satisfactory level
of profits every year
Uniformity
A very important concern at HUL has to do with uniformity how consistent HULrsquos
principles policies rules of conduct and strategies should be and to what extent they
should differ depending on the country subsidiary region branch or group of products
In general HUL tries to limit the uniformity of its policy to a requisite minimum
Diversification
HUL does not want to become either a conglomerate or a portfolio manager
HUListoperate only those businesses about which it has some special knowledge and
expertise HUL is a global company not a conglomerate hodgepodge We regard
acquisitions and efforts at diversification as logical ways to supplement our business but
only in the context of a carefully considered corporate marketing policy
Flexibility and simplicity
The publics sense of the power and size of a corporation is often inaccurate for a
companys power is limited by a host of factors including legislation competition
regulatory bodies and publicity From a business point of view it is desirable for
a firm to achieve the size best suited to a specific industry or mode of
production To be competitive internationally and make significant investments in
research and technology a larger company has an advantage From a strictly
organizational point of view flexible simple structures work best and excessively
large units should be avoided whenever possible In both respects HUL has a natural
advantage Although it is a big company it is spread out over many countries and
each of HULs factories has its own management and responsibility
Packaging
Manufacturing comprises all unit operations necessary to transform perishable raw
materials into finished products with the aim to make them safe and convenient
for the consumers The manufacturing activities of the HUL
respect natural resources by efficient use of raw materials and energy
minimize waste generation and emissions
ensure environmentally safe disposal of all waste which cannot be recycled
Regular assessments of processing practices are carried out These assessments
include
evaluation of individual plant performance with regard to operations which
have an impact on the environment
definition of targets for improvement
review of plant compliance with local government regulations company
environmental standards as well as results achieved in comparison with
targets for improvement
full investigation of incidents which may affect the environment
Information on developments in environmental protection technology and practices is
disseminated as required to ensure that all plants are using the most effective
environmental practices for their type of processing This applies also for co
packers
Marketing and distribution
Marketing is based on the principle of satisfying consumer needs This is the
foundation also for the environmental marketing approach of HUL
Environmental product claims in advertising promotional material and on
packaging are in accordance with legal requirements based on solid scientific
evidence and used in a serious and reasonable manner
Our aim is to minimize wastage in communication publicity and promotional
material in particular through more precise targeting of marketing activities
Consumer promotions and merchandising material such as consumer offers in store
promotions display material leaflets printed matter etc take environmental aspects
into account
This means due consideration of environmental impact in selecting both materials
and printing methods
In distribution energy efficient and pollution controlled methods are encouraged
wherever possible
Legislation and Regulations
It is the policy of the HUL to strictly comply with all laws and regulations
relevant to our activities We participate in discussions on food legislation and
regulations between international organizations government representatives industry
the scientific world and consumer associations We also apply this policy to
environment related matters
In doing so we cooperate with legislators through local industry associations in
order to promote laws and regulations in the field of environment which are
reasonable rational realistic applicable and enforceable We oppose unjustified bans
and any other discriminatory measures
35 BUSINESS CATEGORIES
HULrsquos purpose is to meet the everyday needs of people everywhere This vision has made HUL Indiarsquos largest Packaged Mass Consumption Goods Company with leadership in Home and Personal Care Products and Foods and BeveragesIt is the countryrsquos largest marketer of Soaps Detergents and Household Care productsIts expertise in Personal Products makes it the leader in Shampoos Skin Care Products Color Cosmetics Deodorants and Fragrances
In Foods and Beverages HUL remains the undisputed market leader in Tea Processed Coffee Branded Wheat Flour Tomato Products Ice Cream Jams and squashes
In New Ventures the new entrants are in Healthcare Confectioners and Network Marketing
HUL is also one of the countryrsquos biggest exporters and has earned the distinction of a Super Star Trading House Its Exports Division is a net foreign exchange earner Among the Exports are branded Soaps and Detergents Personal Products Tea amp Coffee Basmati Rice Castor Oil and its Derivatives
36 THE BRANDS
The formulation of branding strategies starts from the building a sustainable brand for the
company This is so as the consumers buy the brand not only for the intrinsic values
associated with it but also because of the promise that branding makes to the
consumerhellipthe promise of delivering values beyond expectation A framework is
suggested below for the formulation of a brand strategy-
1 Experiential marketing
The first component of branding strategy is the experiential marketing It is a well known
fact that the customers demand experiences instead of products or services This creates a
challenge to the organizations to find new ways to involve the customers in the value
chain so that they themselves can decide the product features and uniqueness that they
expect from the brand They want to know more about the details of the brand They
remove the shells and get into the core of the processes to understand the real value of the
brand Hence such a strategy should be framed that makes the consumers involvement
higher
2 Effective Branding
It is found that effective branding involves working on four important dimensions
namely
bull The Functional Dimension- The functional dimension concerns the perception of
benefit of the product or service associated with the brand
bull The Social Dimension- The Social Dimension concern the ability to create
identification with the group
bull The Spiritual Dimension- The Spiritual Dimension is the perception of global or
local responsibility
bull The Mental Dimension- The Mental Dimension is the ability to support the
individual mentally
3 Novel Brand Strategies
bull Customers Own the Brand- It should always be kept in mind that it is the consumers
who own the brand
bull Product Service- A sale should never be considered the ending of a transaction but the
beginning of a beautiful relationship Customer service basically creates a positive effect
on the minds of the customer and this positive influence on the mind of the consumer
makes them more open to new ideas and reduces their skeptic towards the brand
bull Buzz Marketing- The development in the technology used in the country has lead to
the increased importance paid to the concept of buzz marketing Branding increasingly
nowadays is moving into Internet-based applications
bull Religious Branding- since it is considered that religion has the power to bind people
and unify them under one common ideal an effective brand strategy must take into
account this powerful force which plays on the minds of the Indian consumers
4 Feedback and Improvements
It is very crucial to have the consumer participation In order to succeed in the long run it is crucial to allow the consumer participation at an intermediary stage of developing the product This will lead to creation of a better relationship between the company and its consumer
MARKETING STRATEGIES
Hindustan Unilever Limited has adopted a four pronged growth strategy -
1 Gunning the market with new products and brand extensions
2 Expansion of the distribution network to small towns for extensive
availability
3 Reduce prices and introduce smaller packages for products to
make them more affordable (a tool to enter price sensitive markets)
4 Focus on employ training and develop a positive attitude through
enhanced manpower development
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
34 Distribution Network 19 ndash 22
35 Business Principles 23 - 26
36 Business Categories 26 amp 27
37 Brands 27 - 37
38 Financial Status of HUL 38
39 Problems Faced by HUL 39
CHAPTER - 4
HAIR CARE
41 Sunsilk The hair expert 40 - 43
42 Procter amp Gamble - The Rival 44
43 Pantene 45 - 47
44 Comparison Of Sunsilk and Pantene 47 amp 48
CHAPTER ndash 5
Analysis and Findings 49 - 51
CHAPTER ndash 6
Conclusion 52Suggestions 53
CHAPTER ndash 7
Limitations 54Bibliography 55
STUDENT DECLARATION
This is to certify that I have completed the Summer Project titled ldquo Hair Care Products Of Hindustan Unilever Limitedrdquo under the guidance of ldquo Miss Supriya Maheshwarirdquo in partial fulfillment of the requirement for the award of Degree of Bachelor Of Business Administration at Maharaja Agrasen Institute Of Management Studies Delhi This is an original piece of work and I have not submitted it earlier elsewhere
Date Signature
Place Name University Enrolment Number
CERTIFICATE FROM THE INSTITUTE GUIDE
This is to certify the summer project titled ldquo Hair Care Products Of Hindustan Unilever Limitedrdquo is an academic work done by ldquo Sakshi Sharmardquo submitted in the partial fulfillment of Bachelor Of Business Administration at Maharaja Agrasen Institute Of Management Studies Delhi under my guidance and direction
To the best of my knowledge and belief the data and information presented by her in the project has not been submitted earlier
Signature
Name of faculty
Designation
DIFFERENT PRODUCTS UNDER ONE UMBRELLA
CHAPTER - 1
INTRODUCTION
11 About the Company
12 Corporate Purpose
13 People and Culture
14 Nurturing Talent
OBJECTIVES OF THE PROJECT
To study the perception about the Hair Care products of HUL
To know the level of awareness among consumers about HUL
To study the comparison between HULrsquos hair care product Sunsilk and its competitor Proctor amp Gamblersquos Pantene
EXECUTIVE SUMMARY
Hindustan Unilever Limited (HUL) is Indiarsquos largest Fast Moving Consumer Goods (FMCG) Company This project on HUL tells us about the position of HUL in todayrsquos market scenario Various journals and newspapers have rated it as the consumer household products company and even Indiarsquos most respected company
First and foremost the purpose of HUL has been explained ie to meet the everyday needs of people everywhere
The most valuable asset to any company is the workforce This project shows how these people are acquired and how HUL retains them It also gives a detailed view of the Board and the Management Committee of HUL Next the project explains the Distribution Network of the company ie how this network evolved initially and the way in which it is conducted in the rural markets The focus then shifts to the Rural Marketing and the Relevant Technology used for the purpose
The next phase looks upon the various Business Categories of HUL ie Soaps Detergents Household Care Products Cosmetics Deodrants amp Fragrances Following this are the Brands of HUL shown in detail in a convenient format
The project further highlights on the Financial News Exports Mergers amp Acquisitions Achievements and the Latest Developments of HUL
Finally we move to our areas of major concern ndash the Hair Care products of HUL Sunsilk Shampoo has taken as the area for research and it is compared with Pantene Shampoo of Procter amp Gamble
HINDUSTAN UNILEVER LIMITEDMeeting Everyday Needs of People Everywhere
21 ABOUT THE COMPANY
Hindustan Unilever Limited (HUL) is Indiarsquos largest fast moving consumer goods company with leadership in Home amp Personal Care Products and Foods amp Beverages HULrsquos brands spread across 20 distinct consumer categories touch the lives of two out of three Indians They endow the company with a scale of combined volumes of about 4 million tones and sales of Rs10000 crores The leading business magazine Forbes Global has rated HUL as the best consumer household products company Leading national publications like The Economic Times Business World amp Business Today have also rated HUL as one of Indiarsquos most respected companies amp the number one in Market Value Added amp EVA
Hindustan Unilever Limited
Type Public company BSEHUL
Industry Fast Moving Consumer Goods (FMCG)
Founded 1933
Headquarters Mumbai India
Key peopleHarish Manwani (Chairman) Nitin Paranjpe (CEO and Managing Director)
Products Home amp Personal Care Foods Water Purifier
Revenue Rs 2086957 crore (US$ 453 billion) (2008-2009)
Employees Over 65000 direct amp indirect employees
Parent Unilever Plc
22 CORPORATE PURPOSE
The purpose of Hindustan Unilever Limited (HUL) is to meet the everyday needs of people of everywhere ndash to anticipate the aspirations of the consumers and to respond creatively and competitively with branded products and services which raise the quality of life The deep roots in local cultures and markets around the world are their unparalleled inheritance and the foundation for their future growth HUL would bring their wealth of knowledge and international expertise to the local customers ndash a truly multi ndash local multinational
The long-term success of HUL requires a total commitment to exceptional standards of performance and productivity to working together effectively and to a willingness to embrace new ideas and learn continuously
They believe that to succeed requires the highest standards of corporate behavior towards employees consumers and the societies and world in which we live
This is HULrsquos road to sustainable profitable growth for their business and long term value creation for their shareholders and employees
23 PEOPLE amp CULTURE
The story of Hindustan Unilever Limited has been chronicle of attracting holding and moulding the finest talent in India and abroad to shape an institution that stands today for the highest standards of quality innovation and service to the consumer and the country HULrsquos people have flourished in an environment marked by fairness the belief that even perfection can be improved upon and the assurance that all you need is merit in order to progress That has proved a
fertile soil indeed for it has bred people whose caliber has changed the quality of millions of Indian consumerrsquos lives
As HULrsquos Chairman Nitin Paranjpe says ldquo We are because of our values ndash truth action courage caring rdquo
24 NURTURING TALENT
Management development amp training in Hindustan Unilever Limited
A peoplersquos company
A company is nothing but the collective intellect of its people Business growth can only take place through people growth And the more a company harnesses the potential of its people the faster it will grow Equally the faster it grows the more opportunities it can create to excite and retain talent HUL has recognized this since their inception People development has always been central to HUL and its business strategy The stretch in brands reflects the stretch in peoplersquos minds The technological feats it has accomplished reflect its peoplersquos ingenuity in deriving innovations from science The value it has extracted from capital corresponds to the value its people have added to to business processes To achieve its full potential it should continue to empower its people to stretch their minds ingenuity and abilities
The Genesis
Unilever is a multilocal ndash multinational and believes that if a company has to grow its management must instinctively understand local consumer needs and aspirations
Thus the focus is on grooming managers from within the country
Nurturing top talent
To develop and retain top talent HUL have put in place a process that helps identify potential business leaders much earlier in their careers they are then placed on a fast track of personal growth
We are already creating substantially opportunities for entrepreneurial leadership for managers through far- reaching changes to the organization specially disaggregating into smaller independent business units to bring about a greater focus on growth The aim is to provide substantial business leadership opportunities for managers as and when they are ready as opposed to when they reach a certain level of seniority
OBJECTIVES OF HINDUSTAN UNILEVER LIMITED
HUL recognizes that its consumers have a sincere and legitimate interest in the
behaviour beliefs and actions of the Company behind brands in which they place
their trust and that without its consumers the Company would not exist
HUL believes that as a general rule legislation is the most effective safeguard of
responsible conduct although in certain areas additional guidance to staff in the
form of voluntary business principles is beneficial in order to ensure that the
highest standards are met throughout the organization
HUL is conscious of the fact that the success of a corporation is a reflection of the
professionalism conduct and the responsible attitude of its management and
employees Therefore recruitment of the right people and ongoing training and
development are crucial
HUL continues to maintain its commitment to follow and respect all applicable
local laws in each of its divisions
CHAPTER - 2
RESEARCH METHODOLOGY
21 Introduction
22 Research Design
23 Modes Of Data Collection and Sample Size
RESEARCH METHODOLOGY
The purpose of the project is to compare the hair care products of Hindustan Unilever Limited and Procter amp Gamble
The data was collected with the help of secondary sources
Secondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
21 INTRODUCTION
Research is a careful critical enquiry in seeking facts and diligent investigation in order to ascertain something For formulating a significant research problem the researcher should try to acquire as much knowledge of the area in which research is to be done as possible The researcher must be fully aware of the environment to which the difficulty pertains
It refers to the method adopted to collect the relevant data and other information which forms the basis of the research writing So for the effective writing of the thesis of the report the data must be quality oriented
22 RESEARCH DESIGN
Research Design is the structure of research It is the glue that holds all of the elements in a research project together This project enables summarization of a complex structure of HUL efficiently
This research design provides answers to following questions
a) What technique have been used to collect the data b) What kind of sampling have been used in this project c) How the data have been analyzed
RESEARCH DESIGN OF THE PROJECT
The research design adopted for this project is ldquo Descriptive Researchrdquo which provides an accurate snapshot of some aspect of market environment It helps in providing information about HUL and its products and services keeping in mind the changing market scenario Its features are
The objective of such a study is to answer the who what when where when and have of the subject under investigation
Descriptive studies are well ndash structured
This study tends to be rigid and its approach cannot be changed every now and then
23 MODES OF DATA COLLECTION amp SAMPLE SIZE
Data has been collected with the help of secondary sourcesSecondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
Magazines Newspapers Company Literature Websites
CHAPTER - 3
COMPANY PROFILE 31 Organisation Structure
32 Key People of HUL
33 Business Supports
34 Distribution Network
35 Business Categories
36 Brands
37 Financial Status of HUL
38 Problems Faced by HUL
31 ORGANIZATION STRUCTURE
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods (FMCG) Company It is present in Home amp Personal Care and Foods amp Beverages categories HUL and Group companies have about 41000 employees including 1550 managers
The fundamental principle determining the organization structure is to infuse speed and flexibility in decision making and implementation with empowered managers across the companyrsquos nationwide operations For this HUL is organized into self ndash sufficient profit centers supported by certain central functions and resources to leverage economies of scale wherever relevant
32 Key People Of HUL
The Board of Directors as repositories of the corporate powers act as a guardian to the Company as also the protectors of shareholderrsquos interest
This Apex body comprises of a Non- Executive Chairman four whole time Directors and five Independent Non ndash Executive Directors The Board of the Company represents the optimum mix of professionalism knowledge and experience
Mr Harish Manwani - CHAIRMAN
Mr Harish Manwani (55) assumed charge as NON ndash Executive Chairman of the company with effect from 1st july 2005
Mr Nitin Paranjpe - CEO and Managing Director
Mr Nitin Paranjpe (46) after obtaining degree in BE (Mechanical) and MBA in marketing joined the company as a management trainee in 1987
Mr RShridhar - Chief Financial Officer
Mr Shridhar Ramamurthy (45) is a Chartered Accountant (Gold Medalist) as well as Cost Accountant and Company Secretary in HUL
33 BUSINESS SUPPORTS
Hindustan Unilever Limited is regarded as one of Indiarsquos most admired companies
It is not only the brands and the people but it is also the support systems Its Research Center is the largest private sector industrial research laboratory of its kind in India HULrsquos enviable reach in the remote heartland makes its distribution web the largest of its kind in India
34 DISTRIBUTION NETWORK
Distribution systemrsquos focus to enable easy access to their brands touch consumers with a three ndash way convergence - of product availability brand communication and higher levels of brand experience
WHAT DITRIBUTION SYSTEM SHOULD DO
The most obvious function of providing the logistics support to get the companyrsquos product to the end customer Another established role is that of fina ncing The channel partners are expected to extend credit to the next level of customers Some channelmembers however also receive credit and the net credit extended is minimal
To meet the ever ndash changing needs of the consumer HUL has set up a distribution network that ensures availability of all its products in all outlets at all the times This includes maintaining favourable trade relations providing innovative incentives to retailers and organizing demand generation activities among a host of other things
Furthermore although the distribution system is common across most businesses each of the businesses has over the years fine ndash tuned the system to meet their objectives The differences therefore lie in the manner businesses use an existing distribution network and the channel players involved therein to improve their reach and service to their customers and end users For instance the distribution
model for detergents personal products and beverages are quite different from each other due to various factors
Similarly the success stories of urban markets cannot necessarily be replicated in rural markets
The evolution of HULrsquos distribution network
The evolution of HULrsquos distribution network The first place of the HUL distribution network had wholesalers placing bulk orders directly with the company Large retailers also placed direct orders which comprised almost 30 of the total orders collected
a) HULs products are distributed through a network of about 7000 redistribution stockists covering about one million retailoutlets
b) The general trade comprises grocery stores chemists wholesale kiosks and general stores
c) Hindustan Unilever provide tailor made services to each of its channel partners
d) HUL is using the point of purchase method for much higher level of direct contact through in ndash store facilitators sampling education and experience
The company salesman grouped all these orders and placed an indent with the Head Office Goods were sent to these markets with the company salesman as the consignee The salesman then collected and distributed the products to the respective wholesalers against cash payment and the money was remitted to the company
The focus of the second phase which spanned the decades of the 40s was to provide desired products and quality service to the companyrsquos customers In order to achieve this one wholesaler in each market was appointed as a ldquo Registered Wholesalerrdquo ( RW) a stock point for the companyrsquos products in that market The company salesman still covered the market canvassing for orders from the rest of the trade He would then distribute stocks from the RW through distribution units maintained by the company The RW system therefore increased the distribution reach of the company to a larger number of customers
The highlight of the third phase was the concept of ldquoRedistribution Stockistrdquo ( RS ) who replaced the RWs The RS was required to provide the distribution units to the company salesman The RS financed his stocks and provided warehousing facilities to store them The RS also undertook demand stimulation activities on behalf of the company The second characteristic of this period we realized that the RS would be able to provide customer service only if he was serviced well This knowledge led to the establishment of the ldquo Company Depotsrdquo system This system helped in transshipment bulk breaking and as a stock point to minimize stock ndash outs at the RS level
In the recent past a significant change has been the replacement of the Company Depot by a system of third party Carrying and Forwarding Agents ( CampFAs ) The CampFAs act as buffer stock ndash points to ensure that stock ndash outs did not take place The CampFA system has also resulted in cost savings in terms of direct transportation and reduced time lag in delivery The most important benefit has been improved customer service to the RS
DISTRIBUTION AT VILLAGES ( RURAL MARKETS )
The company has brought all markets with populations of below 50000 under one rural sales organization
The team comprises an exclusive sales force and exclusive redistribution stockists
The team focuses on building superior availability of products
In rural India the network directly covers about 50000 villages reaching 250 million consumers through 6000 sub - stockists
DISTRIBUTION AT THE SUPERMARKETS
HUL has set up a full ndash scale sales organization for this channel to serve modern retailing outlets
Product tests and in ndash store sampling is provided to consumers
HARNESSING INFORMATION TECHNOLOGY
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
The objective is to make the product available at the right place and right time in the most cost effective manner
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
For this stockists have been connected through an Internet-based network called RS Net for online interaction
RS Net is part of Project Leap HULs end ndash to - end supply chain
PIONEERING NEW CHANNELS
HUL is simultaneously creating new channels designed on the same principal of holistic contact with customers
1) Project Shakti HULs partnership with Self Help Groups of rural women Started in 2001 Project Shakti has already been extended to about 50000 villages in 12 states - Andhra Pradesh Karnataka Gujarat and others
2) HINDUSTAN UNILEVER NETWORK ( HUN) it is the companyrsquos arm in the Direct Selling channel It represents a range of customized offerings in Home amp Personal Care and Foods
3) Out - Of -Home this deals in providing vending machines for hot beverages like tea coffee
4) Health and Beauty Services Lakme saloons provide specialized beauty services and solutions under the recognized authority of Lakme brand The Ayush Therapy Centers provide easy access to authentic Ayurvedic treatment and products
BUSINESS PRINCIPLES
People first
Employees people and products are more important at Hindustan Unilever Limited
than systems Systems and methods while necessary and valuable in running a complex
organization should remain managerial and operational aids but should not become ends
in themselves It is a question of priorities A strong orientation toward human beings
employees and executives is a decisive if not the decisive component of long-term
success
Quality products
Our focus is on products The ultimate justification for a company is its ability to offer
products that are appealing because of their quality convenience variety and price --
products that can stand their ground even in the face of fierce competition
Long-term view
HULmakes clear distinction between strategy and tactics It gives priority to the long-
range view Long-term thinking defuses many of the conflicts and contentions among
groups this applies to employment conditions and relations with employees as well as to
the conflicts and opposing interests of the trade and the industry Of course our ability to
focus on long-term considerations is only possible if the company is successful in the
struggle for short-term survival This is why HUL strives to maintain a satisfactory level
of profits every year
Uniformity
A very important concern at HUL has to do with uniformity how consistent HULrsquos
principles policies rules of conduct and strategies should be and to what extent they
should differ depending on the country subsidiary region branch or group of products
In general HUL tries to limit the uniformity of its policy to a requisite minimum
Diversification
HUL does not want to become either a conglomerate or a portfolio manager
HUListoperate only those businesses about which it has some special knowledge and
expertise HUL is a global company not a conglomerate hodgepodge We regard
acquisitions and efforts at diversification as logical ways to supplement our business but
only in the context of a carefully considered corporate marketing policy
Flexibility and simplicity
The publics sense of the power and size of a corporation is often inaccurate for a
companys power is limited by a host of factors including legislation competition
regulatory bodies and publicity From a business point of view it is desirable for
a firm to achieve the size best suited to a specific industry or mode of
production To be competitive internationally and make significant investments in
research and technology a larger company has an advantage From a strictly
organizational point of view flexible simple structures work best and excessively
large units should be avoided whenever possible In both respects HUL has a natural
advantage Although it is a big company it is spread out over many countries and
each of HULs factories has its own management and responsibility
Packaging
Manufacturing comprises all unit operations necessary to transform perishable raw
materials into finished products with the aim to make them safe and convenient
for the consumers The manufacturing activities of the HUL
respect natural resources by efficient use of raw materials and energy
minimize waste generation and emissions
ensure environmentally safe disposal of all waste which cannot be recycled
Regular assessments of processing practices are carried out These assessments
include
evaluation of individual plant performance with regard to operations which
have an impact on the environment
definition of targets for improvement
review of plant compliance with local government regulations company
environmental standards as well as results achieved in comparison with
targets for improvement
full investigation of incidents which may affect the environment
Information on developments in environmental protection technology and practices is
disseminated as required to ensure that all plants are using the most effective
environmental practices for their type of processing This applies also for co
packers
Marketing and distribution
Marketing is based on the principle of satisfying consumer needs This is the
foundation also for the environmental marketing approach of HUL
Environmental product claims in advertising promotional material and on
packaging are in accordance with legal requirements based on solid scientific
evidence and used in a serious and reasonable manner
Our aim is to minimize wastage in communication publicity and promotional
material in particular through more precise targeting of marketing activities
Consumer promotions and merchandising material such as consumer offers in store
promotions display material leaflets printed matter etc take environmental aspects
into account
This means due consideration of environmental impact in selecting both materials
and printing methods
In distribution energy efficient and pollution controlled methods are encouraged
wherever possible
Legislation and Regulations
It is the policy of the HUL to strictly comply with all laws and regulations
relevant to our activities We participate in discussions on food legislation and
regulations between international organizations government representatives industry
the scientific world and consumer associations We also apply this policy to
environment related matters
In doing so we cooperate with legislators through local industry associations in
order to promote laws and regulations in the field of environment which are
reasonable rational realistic applicable and enforceable We oppose unjustified bans
and any other discriminatory measures
35 BUSINESS CATEGORIES
HULrsquos purpose is to meet the everyday needs of people everywhere This vision has made HUL Indiarsquos largest Packaged Mass Consumption Goods Company with leadership in Home and Personal Care Products and Foods and BeveragesIt is the countryrsquos largest marketer of Soaps Detergents and Household Care productsIts expertise in Personal Products makes it the leader in Shampoos Skin Care Products Color Cosmetics Deodorants and Fragrances
In Foods and Beverages HUL remains the undisputed market leader in Tea Processed Coffee Branded Wheat Flour Tomato Products Ice Cream Jams and squashes
In New Ventures the new entrants are in Healthcare Confectioners and Network Marketing
HUL is also one of the countryrsquos biggest exporters and has earned the distinction of a Super Star Trading House Its Exports Division is a net foreign exchange earner Among the Exports are branded Soaps and Detergents Personal Products Tea amp Coffee Basmati Rice Castor Oil and its Derivatives
36 THE BRANDS
The formulation of branding strategies starts from the building a sustainable brand for the
company This is so as the consumers buy the brand not only for the intrinsic values
associated with it but also because of the promise that branding makes to the
consumerhellipthe promise of delivering values beyond expectation A framework is
suggested below for the formulation of a brand strategy-
1 Experiential marketing
The first component of branding strategy is the experiential marketing It is a well known
fact that the customers demand experiences instead of products or services This creates a
challenge to the organizations to find new ways to involve the customers in the value
chain so that they themselves can decide the product features and uniqueness that they
expect from the brand They want to know more about the details of the brand They
remove the shells and get into the core of the processes to understand the real value of the
brand Hence such a strategy should be framed that makes the consumers involvement
higher
2 Effective Branding
It is found that effective branding involves working on four important dimensions
namely
bull The Functional Dimension- The functional dimension concerns the perception of
benefit of the product or service associated with the brand
bull The Social Dimension- The Social Dimension concern the ability to create
identification with the group
bull The Spiritual Dimension- The Spiritual Dimension is the perception of global or
local responsibility
bull The Mental Dimension- The Mental Dimension is the ability to support the
individual mentally
3 Novel Brand Strategies
bull Customers Own the Brand- It should always be kept in mind that it is the consumers
who own the brand
bull Product Service- A sale should never be considered the ending of a transaction but the
beginning of a beautiful relationship Customer service basically creates a positive effect
on the minds of the customer and this positive influence on the mind of the consumer
makes them more open to new ideas and reduces their skeptic towards the brand
bull Buzz Marketing- The development in the technology used in the country has lead to
the increased importance paid to the concept of buzz marketing Branding increasingly
nowadays is moving into Internet-based applications
bull Religious Branding- since it is considered that religion has the power to bind people
and unify them under one common ideal an effective brand strategy must take into
account this powerful force which plays on the minds of the Indian consumers
4 Feedback and Improvements
It is very crucial to have the consumer participation In order to succeed in the long run it is crucial to allow the consumer participation at an intermediary stage of developing the product This will lead to creation of a better relationship between the company and its consumer
MARKETING STRATEGIES
Hindustan Unilever Limited has adopted a four pronged growth strategy -
1 Gunning the market with new products and brand extensions
2 Expansion of the distribution network to small towns for extensive
availability
3 Reduce prices and introduce smaller packages for products to
make them more affordable (a tool to enter price sensitive markets)
4 Focus on employ training and develop a positive attitude through
enhanced manpower development
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
STUDENT DECLARATION
This is to certify that I have completed the Summer Project titled ldquo Hair Care Products Of Hindustan Unilever Limitedrdquo under the guidance of ldquo Miss Supriya Maheshwarirdquo in partial fulfillment of the requirement for the award of Degree of Bachelor Of Business Administration at Maharaja Agrasen Institute Of Management Studies Delhi This is an original piece of work and I have not submitted it earlier elsewhere
Date Signature
Place Name University Enrolment Number
CERTIFICATE FROM THE INSTITUTE GUIDE
This is to certify the summer project titled ldquo Hair Care Products Of Hindustan Unilever Limitedrdquo is an academic work done by ldquo Sakshi Sharmardquo submitted in the partial fulfillment of Bachelor Of Business Administration at Maharaja Agrasen Institute Of Management Studies Delhi under my guidance and direction
To the best of my knowledge and belief the data and information presented by her in the project has not been submitted earlier
Signature
Name of faculty
Designation
DIFFERENT PRODUCTS UNDER ONE UMBRELLA
CHAPTER - 1
INTRODUCTION
11 About the Company
12 Corporate Purpose
13 People and Culture
14 Nurturing Talent
OBJECTIVES OF THE PROJECT
To study the perception about the Hair Care products of HUL
To know the level of awareness among consumers about HUL
To study the comparison between HULrsquos hair care product Sunsilk and its competitor Proctor amp Gamblersquos Pantene
EXECUTIVE SUMMARY
Hindustan Unilever Limited (HUL) is Indiarsquos largest Fast Moving Consumer Goods (FMCG) Company This project on HUL tells us about the position of HUL in todayrsquos market scenario Various journals and newspapers have rated it as the consumer household products company and even Indiarsquos most respected company
First and foremost the purpose of HUL has been explained ie to meet the everyday needs of people everywhere
The most valuable asset to any company is the workforce This project shows how these people are acquired and how HUL retains them It also gives a detailed view of the Board and the Management Committee of HUL Next the project explains the Distribution Network of the company ie how this network evolved initially and the way in which it is conducted in the rural markets The focus then shifts to the Rural Marketing and the Relevant Technology used for the purpose
The next phase looks upon the various Business Categories of HUL ie Soaps Detergents Household Care Products Cosmetics Deodrants amp Fragrances Following this are the Brands of HUL shown in detail in a convenient format
The project further highlights on the Financial News Exports Mergers amp Acquisitions Achievements and the Latest Developments of HUL
Finally we move to our areas of major concern ndash the Hair Care products of HUL Sunsilk Shampoo has taken as the area for research and it is compared with Pantene Shampoo of Procter amp Gamble
HINDUSTAN UNILEVER LIMITEDMeeting Everyday Needs of People Everywhere
21 ABOUT THE COMPANY
Hindustan Unilever Limited (HUL) is Indiarsquos largest fast moving consumer goods company with leadership in Home amp Personal Care Products and Foods amp Beverages HULrsquos brands spread across 20 distinct consumer categories touch the lives of two out of three Indians They endow the company with a scale of combined volumes of about 4 million tones and sales of Rs10000 crores The leading business magazine Forbes Global has rated HUL as the best consumer household products company Leading national publications like The Economic Times Business World amp Business Today have also rated HUL as one of Indiarsquos most respected companies amp the number one in Market Value Added amp EVA
Hindustan Unilever Limited
Type Public company BSEHUL
Industry Fast Moving Consumer Goods (FMCG)
Founded 1933
Headquarters Mumbai India
Key peopleHarish Manwani (Chairman) Nitin Paranjpe (CEO and Managing Director)
Products Home amp Personal Care Foods Water Purifier
Revenue Rs 2086957 crore (US$ 453 billion) (2008-2009)
Employees Over 65000 direct amp indirect employees
Parent Unilever Plc
22 CORPORATE PURPOSE
The purpose of Hindustan Unilever Limited (HUL) is to meet the everyday needs of people of everywhere ndash to anticipate the aspirations of the consumers and to respond creatively and competitively with branded products and services which raise the quality of life The deep roots in local cultures and markets around the world are their unparalleled inheritance and the foundation for their future growth HUL would bring their wealth of knowledge and international expertise to the local customers ndash a truly multi ndash local multinational
The long-term success of HUL requires a total commitment to exceptional standards of performance and productivity to working together effectively and to a willingness to embrace new ideas and learn continuously
They believe that to succeed requires the highest standards of corporate behavior towards employees consumers and the societies and world in which we live
This is HULrsquos road to sustainable profitable growth for their business and long term value creation for their shareholders and employees
23 PEOPLE amp CULTURE
The story of Hindustan Unilever Limited has been chronicle of attracting holding and moulding the finest talent in India and abroad to shape an institution that stands today for the highest standards of quality innovation and service to the consumer and the country HULrsquos people have flourished in an environment marked by fairness the belief that even perfection can be improved upon and the assurance that all you need is merit in order to progress That has proved a
fertile soil indeed for it has bred people whose caliber has changed the quality of millions of Indian consumerrsquos lives
As HULrsquos Chairman Nitin Paranjpe says ldquo We are because of our values ndash truth action courage caring rdquo
24 NURTURING TALENT
Management development amp training in Hindustan Unilever Limited
A peoplersquos company
A company is nothing but the collective intellect of its people Business growth can only take place through people growth And the more a company harnesses the potential of its people the faster it will grow Equally the faster it grows the more opportunities it can create to excite and retain talent HUL has recognized this since their inception People development has always been central to HUL and its business strategy The stretch in brands reflects the stretch in peoplersquos minds The technological feats it has accomplished reflect its peoplersquos ingenuity in deriving innovations from science The value it has extracted from capital corresponds to the value its people have added to to business processes To achieve its full potential it should continue to empower its people to stretch their minds ingenuity and abilities
The Genesis
Unilever is a multilocal ndash multinational and believes that if a company has to grow its management must instinctively understand local consumer needs and aspirations
Thus the focus is on grooming managers from within the country
Nurturing top talent
To develop and retain top talent HUL have put in place a process that helps identify potential business leaders much earlier in their careers they are then placed on a fast track of personal growth
We are already creating substantially opportunities for entrepreneurial leadership for managers through far- reaching changes to the organization specially disaggregating into smaller independent business units to bring about a greater focus on growth The aim is to provide substantial business leadership opportunities for managers as and when they are ready as opposed to when they reach a certain level of seniority
OBJECTIVES OF HINDUSTAN UNILEVER LIMITED
HUL recognizes that its consumers have a sincere and legitimate interest in the
behaviour beliefs and actions of the Company behind brands in which they place
their trust and that without its consumers the Company would not exist
HUL believes that as a general rule legislation is the most effective safeguard of
responsible conduct although in certain areas additional guidance to staff in the
form of voluntary business principles is beneficial in order to ensure that the
highest standards are met throughout the organization
HUL is conscious of the fact that the success of a corporation is a reflection of the
professionalism conduct and the responsible attitude of its management and
employees Therefore recruitment of the right people and ongoing training and
development are crucial
HUL continues to maintain its commitment to follow and respect all applicable
local laws in each of its divisions
CHAPTER - 2
RESEARCH METHODOLOGY
21 Introduction
22 Research Design
23 Modes Of Data Collection and Sample Size
RESEARCH METHODOLOGY
The purpose of the project is to compare the hair care products of Hindustan Unilever Limited and Procter amp Gamble
The data was collected with the help of secondary sources
Secondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
21 INTRODUCTION
Research is a careful critical enquiry in seeking facts and diligent investigation in order to ascertain something For formulating a significant research problem the researcher should try to acquire as much knowledge of the area in which research is to be done as possible The researcher must be fully aware of the environment to which the difficulty pertains
It refers to the method adopted to collect the relevant data and other information which forms the basis of the research writing So for the effective writing of the thesis of the report the data must be quality oriented
22 RESEARCH DESIGN
Research Design is the structure of research It is the glue that holds all of the elements in a research project together This project enables summarization of a complex structure of HUL efficiently
This research design provides answers to following questions
a) What technique have been used to collect the data b) What kind of sampling have been used in this project c) How the data have been analyzed
RESEARCH DESIGN OF THE PROJECT
The research design adopted for this project is ldquo Descriptive Researchrdquo which provides an accurate snapshot of some aspect of market environment It helps in providing information about HUL and its products and services keeping in mind the changing market scenario Its features are
The objective of such a study is to answer the who what when where when and have of the subject under investigation
Descriptive studies are well ndash structured
This study tends to be rigid and its approach cannot be changed every now and then
23 MODES OF DATA COLLECTION amp SAMPLE SIZE
Data has been collected with the help of secondary sourcesSecondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
Magazines Newspapers Company Literature Websites
CHAPTER - 3
COMPANY PROFILE 31 Organisation Structure
32 Key People of HUL
33 Business Supports
34 Distribution Network
35 Business Categories
36 Brands
37 Financial Status of HUL
38 Problems Faced by HUL
31 ORGANIZATION STRUCTURE
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods (FMCG) Company It is present in Home amp Personal Care and Foods amp Beverages categories HUL and Group companies have about 41000 employees including 1550 managers
The fundamental principle determining the organization structure is to infuse speed and flexibility in decision making and implementation with empowered managers across the companyrsquos nationwide operations For this HUL is organized into self ndash sufficient profit centers supported by certain central functions and resources to leverage economies of scale wherever relevant
32 Key People Of HUL
The Board of Directors as repositories of the corporate powers act as a guardian to the Company as also the protectors of shareholderrsquos interest
This Apex body comprises of a Non- Executive Chairman four whole time Directors and five Independent Non ndash Executive Directors The Board of the Company represents the optimum mix of professionalism knowledge and experience
Mr Harish Manwani - CHAIRMAN
Mr Harish Manwani (55) assumed charge as NON ndash Executive Chairman of the company with effect from 1st july 2005
Mr Nitin Paranjpe - CEO and Managing Director
Mr Nitin Paranjpe (46) after obtaining degree in BE (Mechanical) and MBA in marketing joined the company as a management trainee in 1987
Mr RShridhar - Chief Financial Officer
Mr Shridhar Ramamurthy (45) is a Chartered Accountant (Gold Medalist) as well as Cost Accountant and Company Secretary in HUL
33 BUSINESS SUPPORTS
Hindustan Unilever Limited is regarded as one of Indiarsquos most admired companies
It is not only the brands and the people but it is also the support systems Its Research Center is the largest private sector industrial research laboratory of its kind in India HULrsquos enviable reach in the remote heartland makes its distribution web the largest of its kind in India
34 DISTRIBUTION NETWORK
Distribution systemrsquos focus to enable easy access to their brands touch consumers with a three ndash way convergence - of product availability brand communication and higher levels of brand experience
WHAT DITRIBUTION SYSTEM SHOULD DO
The most obvious function of providing the logistics support to get the companyrsquos product to the end customer Another established role is that of fina ncing The channel partners are expected to extend credit to the next level of customers Some channelmembers however also receive credit and the net credit extended is minimal
To meet the ever ndash changing needs of the consumer HUL has set up a distribution network that ensures availability of all its products in all outlets at all the times This includes maintaining favourable trade relations providing innovative incentives to retailers and organizing demand generation activities among a host of other things
Furthermore although the distribution system is common across most businesses each of the businesses has over the years fine ndash tuned the system to meet their objectives The differences therefore lie in the manner businesses use an existing distribution network and the channel players involved therein to improve their reach and service to their customers and end users For instance the distribution
model for detergents personal products and beverages are quite different from each other due to various factors
Similarly the success stories of urban markets cannot necessarily be replicated in rural markets
The evolution of HULrsquos distribution network
The evolution of HULrsquos distribution network The first place of the HUL distribution network had wholesalers placing bulk orders directly with the company Large retailers also placed direct orders which comprised almost 30 of the total orders collected
a) HULs products are distributed through a network of about 7000 redistribution stockists covering about one million retailoutlets
b) The general trade comprises grocery stores chemists wholesale kiosks and general stores
c) Hindustan Unilever provide tailor made services to each of its channel partners
d) HUL is using the point of purchase method for much higher level of direct contact through in ndash store facilitators sampling education and experience
The company salesman grouped all these orders and placed an indent with the Head Office Goods were sent to these markets with the company salesman as the consignee The salesman then collected and distributed the products to the respective wholesalers against cash payment and the money was remitted to the company
The focus of the second phase which spanned the decades of the 40s was to provide desired products and quality service to the companyrsquos customers In order to achieve this one wholesaler in each market was appointed as a ldquo Registered Wholesalerrdquo ( RW) a stock point for the companyrsquos products in that market The company salesman still covered the market canvassing for orders from the rest of the trade He would then distribute stocks from the RW through distribution units maintained by the company The RW system therefore increased the distribution reach of the company to a larger number of customers
The highlight of the third phase was the concept of ldquoRedistribution Stockistrdquo ( RS ) who replaced the RWs The RS was required to provide the distribution units to the company salesman The RS financed his stocks and provided warehousing facilities to store them The RS also undertook demand stimulation activities on behalf of the company The second characteristic of this period we realized that the RS would be able to provide customer service only if he was serviced well This knowledge led to the establishment of the ldquo Company Depotsrdquo system This system helped in transshipment bulk breaking and as a stock point to minimize stock ndash outs at the RS level
In the recent past a significant change has been the replacement of the Company Depot by a system of third party Carrying and Forwarding Agents ( CampFAs ) The CampFAs act as buffer stock ndash points to ensure that stock ndash outs did not take place The CampFA system has also resulted in cost savings in terms of direct transportation and reduced time lag in delivery The most important benefit has been improved customer service to the RS
DISTRIBUTION AT VILLAGES ( RURAL MARKETS )
The company has brought all markets with populations of below 50000 under one rural sales organization
The team comprises an exclusive sales force and exclusive redistribution stockists
The team focuses on building superior availability of products
In rural India the network directly covers about 50000 villages reaching 250 million consumers through 6000 sub - stockists
DISTRIBUTION AT THE SUPERMARKETS
HUL has set up a full ndash scale sales organization for this channel to serve modern retailing outlets
Product tests and in ndash store sampling is provided to consumers
HARNESSING INFORMATION TECHNOLOGY
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
The objective is to make the product available at the right place and right time in the most cost effective manner
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
For this stockists have been connected through an Internet-based network called RS Net for online interaction
RS Net is part of Project Leap HULs end ndash to - end supply chain
PIONEERING NEW CHANNELS
HUL is simultaneously creating new channels designed on the same principal of holistic contact with customers
1) Project Shakti HULs partnership with Self Help Groups of rural women Started in 2001 Project Shakti has already been extended to about 50000 villages in 12 states - Andhra Pradesh Karnataka Gujarat and others
2) HINDUSTAN UNILEVER NETWORK ( HUN) it is the companyrsquos arm in the Direct Selling channel It represents a range of customized offerings in Home amp Personal Care and Foods
3) Out - Of -Home this deals in providing vending machines for hot beverages like tea coffee
4) Health and Beauty Services Lakme saloons provide specialized beauty services and solutions under the recognized authority of Lakme brand The Ayush Therapy Centers provide easy access to authentic Ayurvedic treatment and products
BUSINESS PRINCIPLES
People first
Employees people and products are more important at Hindustan Unilever Limited
than systems Systems and methods while necessary and valuable in running a complex
organization should remain managerial and operational aids but should not become ends
in themselves It is a question of priorities A strong orientation toward human beings
employees and executives is a decisive if not the decisive component of long-term
success
Quality products
Our focus is on products The ultimate justification for a company is its ability to offer
products that are appealing because of their quality convenience variety and price --
products that can stand their ground even in the face of fierce competition
Long-term view
HULmakes clear distinction between strategy and tactics It gives priority to the long-
range view Long-term thinking defuses many of the conflicts and contentions among
groups this applies to employment conditions and relations with employees as well as to
the conflicts and opposing interests of the trade and the industry Of course our ability to
focus on long-term considerations is only possible if the company is successful in the
struggle for short-term survival This is why HUL strives to maintain a satisfactory level
of profits every year
Uniformity
A very important concern at HUL has to do with uniformity how consistent HULrsquos
principles policies rules of conduct and strategies should be and to what extent they
should differ depending on the country subsidiary region branch or group of products
In general HUL tries to limit the uniformity of its policy to a requisite minimum
Diversification
HUL does not want to become either a conglomerate or a portfolio manager
HUListoperate only those businesses about which it has some special knowledge and
expertise HUL is a global company not a conglomerate hodgepodge We regard
acquisitions and efforts at diversification as logical ways to supplement our business but
only in the context of a carefully considered corporate marketing policy
Flexibility and simplicity
The publics sense of the power and size of a corporation is often inaccurate for a
companys power is limited by a host of factors including legislation competition
regulatory bodies and publicity From a business point of view it is desirable for
a firm to achieve the size best suited to a specific industry or mode of
production To be competitive internationally and make significant investments in
research and technology a larger company has an advantage From a strictly
organizational point of view flexible simple structures work best and excessively
large units should be avoided whenever possible In both respects HUL has a natural
advantage Although it is a big company it is spread out over many countries and
each of HULs factories has its own management and responsibility
Packaging
Manufacturing comprises all unit operations necessary to transform perishable raw
materials into finished products with the aim to make them safe and convenient
for the consumers The manufacturing activities of the HUL
respect natural resources by efficient use of raw materials and energy
minimize waste generation and emissions
ensure environmentally safe disposal of all waste which cannot be recycled
Regular assessments of processing practices are carried out These assessments
include
evaluation of individual plant performance with regard to operations which
have an impact on the environment
definition of targets for improvement
review of plant compliance with local government regulations company
environmental standards as well as results achieved in comparison with
targets for improvement
full investigation of incidents which may affect the environment
Information on developments in environmental protection technology and practices is
disseminated as required to ensure that all plants are using the most effective
environmental practices for their type of processing This applies also for co
packers
Marketing and distribution
Marketing is based on the principle of satisfying consumer needs This is the
foundation also for the environmental marketing approach of HUL
Environmental product claims in advertising promotional material and on
packaging are in accordance with legal requirements based on solid scientific
evidence and used in a serious and reasonable manner
Our aim is to minimize wastage in communication publicity and promotional
material in particular through more precise targeting of marketing activities
Consumer promotions and merchandising material such as consumer offers in store
promotions display material leaflets printed matter etc take environmental aspects
into account
This means due consideration of environmental impact in selecting both materials
and printing methods
In distribution energy efficient and pollution controlled methods are encouraged
wherever possible
Legislation and Regulations
It is the policy of the HUL to strictly comply with all laws and regulations
relevant to our activities We participate in discussions on food legislation and
regulations between international organizations government representatives industry
the scientific world and consumer associations We also apply this policy to
environment related matters
In doing so we cooperate with legislators through local industry associations in
order to promote laws and regulations in the field of environment which are
reasonable rational realistic applicable and enforceable We oppose unjustified bans
and any other discriminatory measures
35 BUSINESS CATEGORIES
HULrsquos purpose is to meet the everyday needs of people everywhere This vision has made HUL Indiarsquos largest Packaged Mass Consumption Goods Company with leadership in Home and Personal Care Products and Foods and BeveragesIt is the countryrsquos largest marketer of Soaps Detergents and Household Care productsIts expertise in Personal Products makes it the leader in Shampoos Skin Care Products Color Cosmetics Deodorants and Fragrances
In Foods and Beverages HUL remains the undisputed market leader in Tea Processed Coffee Branded Wheat Flour Tomato Products Ice Cream Jams and squashes
In New Ventures the new entrants are in Healthcare Confectioners and Network Marketing
HUL is also one of the countryrsquos biggest exporters and has earned the distinction of a Super Star Trading House Its Exports Division is a net foreign exchange earner Among the Exports are branded Soaps and Detergents Personal Products Tea amp Coffee Basmati Rice Castor Oil and its Derivatives
36 THE BRANDS
The formulation of branding strategies starts from the building a sustainable brand for the
company This is so as the consumers buy the brand not only for the intrinsic values
associated with it but also because of the promise that branding makes to the
consumerhellipthe promise of delivering values beyond expectation A framework is
suggested below for the formulation of a brand strategy-
1 Experiential marketing
The first component of branding strategy is the experiential marketing It is a well known
fact that the customers demand experiences instead of products or services This creates a
challenge to the organizations to find new ways to involve the customers in the value
chain so that they themselves can decide the product features and uniqueness that they
expect from the brand They want to know more about the details of the brand They
remove the shells and get into the core of the processes to understand the real value of the
brand Hence such a strategy should be framed that makes the consumers involvement
higher
2 Effective Branding
It is found that effective branding involves working on four important dimensions
namely
bull The Functional Dimension- The functional dimension concerns the perception of
benefit of the product or service associated with the brand
bull The Social Dimension- The Social Dimension concern the ability to create
identification with the group
bull The Spiritual Dimension- The Spiritual Dimension is the perception of global or
local responsibility
bull The Mental Dimension- The Mental Dimension is the ability to support the
individual mentally
3 Novel Brand Strategies
bull Customers Own the Brand- It should always be kept in mind that it is the consumers
who own the brand
bull Product Service- A sale should never be considered the ending of a transaction but the
beginning of a beautiful relationship Customer service basically creates a positive effect
on the minds of the customer and this positive influence on the mind of the consumer
makes them more open to new ideas and reduces their skeptic towards the brand
bull Buzz Marketing- The development in the technology used in the country has lead to
the increased importance paid to the concept of buzz marketing Branding increasingly
nowadays is moving into Internet-based applications
bull Religious Branding- since it is considered that religion has the power to bind people
and unify them under one common ideal an effective brand strategy must take into
account this powerful force which plays on the minds of the Indian consumers
4 Feedback and Improvements
It is very crucial to have the consumer participation In order to succeed in the long run it is crucial to allow the consumer participation at an intermediary stage of developing the product This will lead to creation of a better relationship between the company and its consumer
MARKETING STRATEGIES
Hindustan Unilever Limited has adopted a four pronged growth strategy -
1 Gunning the market with new products and brand extensions
2 Expansion of the distribution network to small towns for extensive
availability
3 Reduce prices and introduce smaller packages for products to
make them more affordable (a tool to enter price sensitive markets)
4 Focus on employ training and develop a positive attitude through
enhanced manpower development
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
CERTIFICATE FROM THE INSTITUTE GUIDE
This is to certify the summer project titled ldquo Hair Care Products Of Hindustan Unilever Limitedrdquo is an academic work done by ldquo Sakshi Sharmardquo submitted in the partial fulfillment of Bachelor Of Business Administration at Maharaja Agrasen Institute Of Management Studies Delhi under my guidance and direction
To the best of my knowledge and belief the data and information presented by her in the project has not been submitted earlier
Signature
Name of faculty
Designation
DIFFERENT PRODUCTS UNDER ONE UMBRELLA
CHAPTER - 1
INTRODUCTION
11 About the Company
12 Corporate Purpose
13 People and Culture
14 Nurturing Talent
OBJECTIVES OF THE PROJECT
To study the perception about the Hair Care products of HUL
To know the level of awareness among consumers about HUL
To study the comparison between HULrsquos hair care product Sunsilk and its competitor Proctor amp Gamblersquos Pantene
EXECUTIVE SUMMARY
Hindustan Unilever Limited (HUL) is Indiarsquos largest Fast Moving Consumer Goods (FMCG) Company This project on HUL tells us about the position of HUL in todayrsquos market scenario Various journals and newspapers have rated it as the consumer household products company and even Indiarsquos most respected company
First and foremost the purpose of HUL has been explained ie to meet the everyday needs of people everywhere
The most valuable asset to any company is the workforce This project shows how these people are acquired and how HUL retains them It also gives a detailed view of the Board and the Management Committee of HUL Next the project explains the Distribution Network of the company ie how this network evolved initially and the way in which it is conducted in the rural markets The focus then shifts to the Rural Marketing and the Relevant Technology used for the purpose
The next phase looks upon the various Business Categories of HUL ie Soaps Detergents Household Care Products Cosmetics Deodrants amp Fragrances Following this are the Brands of HUL shown in detail in a convenient format
The project further highlights on the Financial News Exports Mergers amp Acquisitions Achievements and the Latest Developments of HUL
Finally we move to our areas of major concern ndash the Hair Care products of HUL Sunsilk Shampoo has taken as the area for research and it is compared with Pantene Shampoo of Procter amp Gamble
HINDUSTAN UNILEVER LIMITEDMeeting Everyday Needs of People Everywhere
21 ABOUT THE COMPANY
Hindustan Unilever Limited (HUL) is Indiarsquos largest fast moving consumer goods company with leadership in Home amp Personal Care Products and Foods amp Beverages HULrsquos brands spread across 20 distinct consumer categories touch the lives of two out of three Indians They endow the company with a scale of combined volumes of about 4 million tones and sales of Rs10000 crores The leading business magazine Forbes Global has rated HUL as the best consumer household products company Leading national publications like The Economic Times Business World amp Business Today have also rated HUL as one of Indiarsquos most respected companies amp the number one in Market Value Added amp EVA
Hindustan Unilever Limited
Type Public company BSEHUL
Industry Fast Moving Consumer Goods (FMCG)
Founded 1933
Headquarters Mumbai India
Key peopleHarish Manwani (Chairman) Nitin Paranjpe (CEO and Managing Director)
Products Home amp Personal Care Foods Water Purifier
Revenue Rs 2086957 crore (US$ 453 billion) (2008-2009)
Employees Over 65000 direct amp indirect employees
Parent Unilever Plc
22 CORPORATE PURPOSE
The purpose of Hindustan Unilever Limited (HUL) is to meet the everyday needs of people of everywhere ndash to anticipate the aspirations of the consumers and to respond creatively and competitively with branded products and services which raise the quality of life The deep roots in local cultures and markets around the world are their unparalleled inheritance and the foundation for their future growth HUL would bring their wealth of knowledge and international expertise to the local customers ndash a truly multi ndash local multinational
The long-term success of HUL requires a total commitment to exceptional standards of performance and productivity to working together effectively and to a willingness to embrace new ideas and learn continuously
They believe that to succeed requires the highest standards of corporate behavior towards employees consumers and the societies and world in which we live
This is HULrsquos road to sustainable profitable growth for their business and long term value creation for their shareholders and employees
23 PEOPLE amp CULTURE
The story of Hindustan Unilever Limited has been chronicle of attracting holding and moulding the finest talent in India and abroad to shape an institution that stands today for the highest standards of quality innovation and service to the consumer and the country HULrsquos people have flourished in an environment marked by fairness the belief that even perfection can be improved upon and the assurance that all you need is merit in order to progress That has proved a
fertile soil indeed for it has bred people whose caliber has changed the quality of millions of Indian consumerrsquos lives
As HULrsquos Chairman Nitin Paranjpe says ldquo We are because of our values ndash truth action courage caring rdquo
24 NURTURING TALENT
Management development amp training in Hindustan Unilever Limited
A peoplersquos company
A company is nothing but the collective intellect of its people Business growth can only take place through people growth And the more a company harnesses the potential of its people the faster it will grow Equally the faster it grows the more opportunities it can create to excite and retain talent HUL has recognized this since their inception People development has always been central to HUL and its business strategy The stretch in brands reflects the stretch in peoplersquos minds The technological feats it has accomplished reflect its peoplersquos ingenuity in deriving innovations from science The value it has extracted from capital corresponds to the value its people have added to to business processes To achieve its full potential it should continue to empower its people to stretch their minds ingenuity and abilities
The Genesis
Unilever is a multilocal ndash multinational and believes that if a company has to grow its management must instinctively understand local consumer needs and aspirations
Thus the focus is on grooming managers from within the country
Nurturing top talent
To develop and retain top talent HUL have put in place a process that helps identify potential business leaders much earlier in their careers they are then placed on a fast track of personal growth
We are already creating substantially opportunities for entrepreneurial leadership for managers through far- reaching changes to the organization specially disaggregating into smaller independent business units to bring about a greater focus on growth The aim is to provide substantial business leadership opportunities for managers as and when they are ready as opposed to when they reach a certain level of seniority
OBJECTIVES OF HINDUSTAN UNILEVER LIMITED
HUL recognizes that its consumers have a sincere and legitimate interest in the
behaviour beliefs and actions of the Company behind brands in which they place
their trust and that without its consumers the Company would not exist
HUL believes that as a general rule legislation is the most effective safeguard of
responsible conduct although in certain areas additional guidance to staff in the
form of voluntary business principles is beneficial in order to ensure that the
highest standards are met throughout the organization
HUL is conscious of the fact that the success of a corporation is a reflection of the
professionalism conduct and the responsible attitude of its management and
employees Therefore recruitment of the right people and ongoing training and
development are crucial
HUL continues to maintain its commitment to follow and respect all applicable
local laws in each of its divisions
CHAPTER - 2
RESEARCH METHODOLOGY
21 Introduction
22 Research Design
23 Modes Of Data Collection and Sample Size
RESEARCH METHODOLOGY
The purpose of the project is to compare the hair care products of Hindustan Unilever Limited and Procter amp Gamble
The data was collected with the help of secondary sources
Secondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
21 INTRODUCTION
Research is a careful critical enquiry in seeking facts and diligent investigation in order to ascertain something For formulating a significant research problem the researcher should try to acquire as much knowledge of the area in which research is to be done as possible The researcher must be fully aware of the environment to which the difficulty pertains
It refers to the method adopted to collect the relevant data and other information which forms the basis of the research writing So for the effective writing of the thesis of the report the data must be quality oriented
22 RESEARCH DESIGN
Research Design is the structure of research It is the glue that holds all of the elements in a research project together This project enables summarization of a complex structure of HUL efficiently
This research design provides answers to following questions
a) What technique have been used to collect the data b) What kind of sampling have been used in this project c) How the data have been analyzed
RESEARCH DESIGN OF THE PROJECT
The research design adopted for this project is ldquo Descriptive Researchrdquo which provides an accurate snapshot of some aspect of market environment It helps in providing information about HUL and its products and services keeping in mind the changing market scenario Its features are
The objective of such a study is to answer the who what when where when and have of the subject under investigation
Descriptive studies are well ndash structured
This study tends to be rigid and its approach cannot be changed every now and then
23 MODES OF DATA COLLECTION amp SAMPLE SIZE
Data has been collected with the help of secondary sourcesSecondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
Magazines Newspapers Company Literature Websites
CHAPTER - 3
COMPANY PROFILE 31 Organisation Structure
32 Key People of HUL
33 Business Supports
34 Distribution Network
35 Business Categories
36 Brands
37 Financial Status of HUL
38 Problems Faced by HUL
31 ORGANIZATION STRUCTURE
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods (FMCG) Company It is present in Home amp Personal Care and Foods amp Beverages categories HUL and Group companies have about 41000 employees including 1550 managers
The fundamental principle determining the organization structure is to infuse speed and flexibility in decision making and implementation with empowered managers across the companyrsquos nationwide operations For this HUL is organized into self ndash sufficient profit centers supported by certain central functions and resources to leverage economies of scale wherever relevant
32 Key People Of HUL
The Board of Directors as repositories of the corporate powers act as a guardian to the Company as also the protectors of shareholderrsquos interest
This Apex body comprises of a Non- Executive Chairman four whole time Directors and five Independent Non ndash Executive Directors The Board of the Company represents the optimum mix of professionalism knowledge and experience
Mr Harish Manwani - CHAIRMAN
Mr Harish Manwani (55) assumed charge as NON ndash Executive Chairman of the company with effect from 1st july 2005
Mr Nitin Paranjpe - CEO and Managing Director
Mr Nitin Paranjpe (46) after obtaining degree in BE (Mechanical) and MBA in marketing joined the company as a management trainee in 1987
Mr RShridhar - Chief Financial Officer
Mr Shridhar Ramamurthy (45) is a Chartered Accountant (Gold Medalist) as well as Cost Accountant and Company Secretary in HUL
33 BUSINESS SUPPORTS
Hindustan Unilever Limited is regarded as one of Indiarsquos most admired companies
It is not only the brands and the people but it is also the support systems Its Research Center is the largest private sector industrial research laboratory of its kind in India HULrsquos enviable reach in the remote heartland makes its distribution web the largest of its kind in India
34 DISTRIBUTION NETWORK
Distribution systemrsquos focus to enable easy access to their brands touch consumers with a three ndash way convergence - of product availability brand communication and higher levels of brand experience
WHAT DITRIBUTION SYSTEM SHOULD DO
The most obvious function of providing the logistics support to get the companyrsquos product to the end customer Another established role is that of fina ncing The channel partners are expected to extend credit to the next level of customers Some channelmembers however also receive credit and the net credit extended is minimal
To meet the ever ndash changing needs of the consumer HUL has set up a distribution network that ensures availability of all its products in all outlets at all the times This includes maintaining favourable trade relations providing innovative incentives to retailers and organizing demand generation activities among a host of other things
Furthermore although the distribution system is common across most businesses each of the businesses has over the years fine ndash tuned the system to meet their objectives The differences therefore lie in the manner businesses use an existing distribution network and the channel players involved therein to improve their reach and service to their customers and end users For instance the distribution
model for detergents personal products and beverages are quite different from each other due to various factors
Similarly the success stories of urban markets cannot necessarily be replicated in rural markets
The evolution of HULrsquos distribution network
The evolution of HULrsquos distribution network The first place of the HUL distribution network had wholesalers placing bulk orders directly with the company Large retailers also placed direct orders which comprised almost 30 of the total orders collected
a) HULs products are distributed through a network of about 7000 redistribution stockists covering about one million retailoutlets
b) The general trade comprises grocery stores chemists wholesale kiosks and general stores
c) Hindustan Unilever provide tailor made services to each of its channel partners
d) HUL is using the point of purchase method for much higher level of direct contact through in ndash store facilitators sampling education and experience
The company salesman grouped all these orders and placed an indent with the Head Office Goods were sent to these markets with the company salesman as the consignee The salesman then collected and distributed the products to the respective wholesalers against cash payment and the money was remitted to the company
The focus of the second phase which spanned the decades of the 40s was to provide desired products and quality service to the companyrsquos customers In order to achieve this one wholesaler in each market was appointed as a ldquo Registered Wholesalerrdquo ( RW) a stock point for the companyrsquos products in that market The company salesman still covered the market canvassing for orders from the rest of the trade He would then distribute stocks from the RW through distribution units maintained by the company The RW system therefore increased the distribution reach of the company to a larger number of customers
The highlight of the third phase was the concept of ldquoRedistribution Stockistrdquo ( RS ) who replaced the RWs The RS was required to provide the distribution units to the company salesman The RS financed his stocks and provided warehousing facilities to store them The RS also undertook demand stimulation activities on behalf of the company The second characteristic of this period we realized that the RS would be able to provide customer service only if he was serviced well This knowledge led to the establishment of the ldquo Company Depotsrdquo system This system helped in transshipment bulk breaking and as a stock point to minimize stock ndash outs at the RS level
In the recent past a significant change has been the replacement of the Company Depot by a system of third party Carrying and Forwarding Agents ( CampFAs ) The CampFAs act as buffer stock ndash points to ensure that stock ndash outs did not take place The CampFA system has also resulted in cost savings in terms of direct transportation and reduced time lag in delivery The most important benefit has been improved customer service to the RS
DISTRIBUTION AT VILLAGES ( RURAL MARKETS )
The company has brought all markets with populations of below 50000 under one rural sales organization
The team comprises an exclusive sales force and exclusive redistribution stockists
The team focuses on building superior availability of products
In rural India the network directly covers about 50000 villages reaching 250 million consumers through 6000 sub - stockists
DISTRIBUTION AT THE SUPERMARKETS
HUL has set up a full ndash scale sales organization for this channel to serve modern retailing outlets
Product tests and in ndash store sampling is provided to consumers
HARNESSING INFORMATION TECHNOLOGY
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
The objective is to make the product available at the right place and right time in the most cost effective manner
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
For this stockists have been connected through an Internet-based network called RS Net for online interaction
RS Net is part of Project Leap HULs end ndash to - end supply chain
PIONEERING NEW CHANNELS
HUL is simultaneously creating new channels designed on the same principal of holistic contact with customers
1) Project Shakti HULs partnership with Self Help Groups of rural women Started in 2001 Project Shakti has already been extended to about 50000 villages in 12 states - Andhra Pradesh Karnataka Gujarat and others
2) HINDUSTAN UNILEVER NETWORK ( HUN) it is the companyrsquos arm in the Direct Selling channel It represents a range of customized offerings in Home amp Personal Care and Foods
3) Out - Of -Home this deals in providing vending machines for hot beverages like tea coffee
4) Health and Beauty Services Lakme saloons provide specialized beauty services and solutions under the recognized authority of Lakme brand The Ayush Therapy Centers provide easy access to authentic Ayurvedic treatment and products
BUSINESS PRINCIPLES
People first
Employees people and products are more important at Hindustan Unilever Limited
than systems Systems and methods while necessary and valuable in running a complex
organization should remain managerial and operational aids but should not become ends
in themselves It is a question of priorities A strong orientation toward human beings
employees and executives is a decisive if not the decisive component of long-term
success
Quality products
Our focus is on products The ultimate justification for a company is its ability to offer
products that are appealing because of their quality convenience variety and price --
products that can stand their ground even in the face of fierce competition
Long-term view
HULmakes clear distinction between strategy and tactics It gives priority to the long-
range view Long-term thinking defuses many of the conflicts and contentions among
groups this applies to employment conditions and relations with employees as well as to
the conflicts and opposing interests of the trade and the industry Of course our ability to
focus on long-term considerations is only possible if the company is successful in the
struggle for short-term survival This is why HUL strives to maintain a satisfactory level
of profits every year
Uniformity
A very important concern at HUL has to do with uniformity how consistent HULrsquos
principles policies rules of conduct and strategies should be and to what extent they
should differ depending on the country subsidiary region branch or group of products
In general HUL tries to limit the uniformity of its policy to a requisite minimum
Diversification
HUL does not want to become either a conglomerate or a portfolio manager
HUListoperate only those businesses about which it has some special knowledge and
expertise HUL is a global company not a conglomerate hodgepodge We regard
acquisitions and efforts at diversification as logical ways to supplement our business but
only in the context of a carefully considered corporate marketing policy
Flexibility and simplicity
The publics sense of the power and size of a corporation is often inaccurate for a
companys power is limited by a host of factors including legislation competition
regulatory bodies and publicity From a business point of view it is desirable for
a firm to achieve the size best suited to a specific industry or mode of
production To be competitive internationally and make significant investments in
research and technology a larger company has an advantage From a strictly
organizational point of view flexible simple structures work best and excessively
large units should be avoided whenever possible In both respects HUL has a natural
advantage Although it is a big company it is spread out over many countries and
each of HULs factories has its own management and responsibility
Packaging
Manufacturing comprises all unit operations necessary to transform perishable raw
materials into finished products with the aim to make them safe and convenient
for the consumers The manufacturing activities of the HUL
respect natural resources by efficient use of raw materials and energy
minimize waste generation and emissions
ensure environmentally safe disposal of all waste which cannot be recycled
Regular assessments of processing practices are carried out These assessments
include
evaluation of individual plant performance with regard to operations which
have an impact on the environment
definition of targets for improvement
review of plant compliance with local government regulations company
environmental standards as well as results achieved in comparison with
targets for improvement
full investigation of incidents which may affect the environment
Information on developments in environmental protection technology and practices is
disseminated as required to ensure that all plants are using the most effective
environmental practices for their type of processing This applies also for co
packers
Marketing and distribution
Marketing is based on the principle of satisfying consumer needs This is the
foundation also for the environmental marketing approach of HUL
Environmental product claims in advertising promotional material and on
packaging are in accordance with legal requirements based on solid scientific
evidence and used in a serious and reasonable manner
Our aim is to minimize wastage in communication publicity and promotional
material in particular through more precise targeting of marketing activities
Consumer promotions and merchandising material such as consumer offers in store
promotions display material leaflets printed matter etc take environmental aspects
into account
This means due consideration of environmental impact in selecting both materials
and printing methods
In distribution energy efficient and pollution controlled methods are encouraged
wherever possible
Legislation and Regulations
It is the policy of the HUL to strictly comply with all laws and regulations
relevant to our activities We participate in discussions on food legislation and
regulations between international organizations government representatives industry
the scientific world and consumer associations We also apply this policy to
environment related matters
In doing so we cooperate with legislators through local industry associations in
order to promote laws and regulations in the field of environment which are
reasonable rational realistic applicable and enforceable We oppose unjustified bans
and any other discriminatory measures
35 BUSINESS CATEGORIES
HULrsquos purpose is to meet the everyday needs of people everywhere This vision has made HUL Indiarsquos largest Packaged Mass Consumption Goods Company with leadership in Home and Personal Care Products and Foods and BeveragesIt is the countryrsquos largest marketer of Soaps Detergents and Household Care productsIts expertise in Personal Products makes it the leader in Shampoos Skin Care Products Color Cosmetics Deodorants and Fragrances
In Foods and Beverages HUL remains the undisputed market leader in Tea Processed Coffee Branded Wheat Flour Tomato Products Ice Cream Jams and squashes
In New Ventures the new entrants are in Healthcare Confectioners and Network Marketing
HUL is also one of the countryrsquos biggest exporters and has earned the distinction of a Super Star Trading House Its Exports Division is a net foreign exchange earner Among the Exports are branded Soaps and Detergents Personal Products Tea amp Coffee Basmati Rice Castor Oil and its Derivatives
36 THE BRANDS
The formulation of branding strategies starts from the building a sustainable brand for the
company This is so as the consumers buy the brand not only for the intrinsic values
associated with it but also because of the promise that branding makes to the
consumerhellipthe promise of delivering values beyond expectation A framework is
suggested below for the formulation of a brand strategy-
1 Experiential marketing
The first component of branding strategy is the experiential marketing It is a well known
fact that the customers demand experiences instead of products or services This creates a
challenge to the organizations to find new ways to involve the customers in the value
chain so that they themselves can decide the product features and uniqueness that they
expect from the brand They want to know more about the details of the brand They
remove the shells and get into the core of the processes to understand the real value of the
brand Hence such a strategy should be framed that makes the consumers involvement
higher
2 Effective Branding
It is found that effective branding involves working on four important dimensions
namely
bull The Functional Dimension- The functional dimension concerns the perception of
benefit of the product or service associated with the brand
bull The Social Dimension- The Social Dimension concern the ability to create
identification with the group
bull The Spiritual Dimension- The Spiritual Dimension is the perception of global or
local responsibility
bull The Mental Dimension- The Mental Dimension is the ability to support the
individual mentally
3 Novel Brand Strategies
bull Customers Own the Brand- It should always be kept in mind that it is the consumers
who own the brand
bull Product Service- A sale should never be considered the ending of a transaction but the
beginning of a beautiful relationship Customer service basically creates a positive effect
on the minds of the customer and this positive influence on the mind of the consumer
makes them more open to new ideas and reduces their skeptic towards the brand
bull Buzz Marketing- The development in the technology used in the country has lead to
the increased importance paid to the concept of buzz marketing Branding increasingly
nowadays is moving into Internet-based applications
bull Religious Branding- since it is considered that religion has the power to bind people
and unify them under one common ideal an effective brand strategy must take into
account this powerful force which plays on the minds of the Indian consumers
4 Feedback and Improvements
It is very crucial to have the consumer participation In order to succeed in the long run it is crucial to allow the consumer participation at an intermediary stage of developing the product This will lead to creation of a better relationship between the company and its consumer
MARKETING STRATEGIES
Hindustan Unilever Limited has adopted a four pronged growth strategy -
1 Gunning the market with new products and brand extensions
2 Expansion of the distribution network to small towns for extensive
availability
3 Reduce prices and introduce smaller packages for products to
make them more affordable (a tool to enter price sensitive markets)
4 Focus on employ training and develop a positive attitude through
enhanced manpower development
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
DIFFERENT PRODUCTS UNDER ONE UMBRELLA
CHAPTER - 1
INTRODUCTION
11 About the Company
12 Corporate Purpose
13 People and Culture
14 Nurturing Talent
OBJECTIVES OF THE PROJECT
To study the perception about the Hair Care products of HUL
To know the level of awareness among consumers about HUL
To study the comparison between HULrsquos hair care product Sunsilk and its competitor Proctor amp Gamblersquos Pantene
EXECUTIVE SUMMARY
Hindustan Unilever Limited (HUL) is Indiarsquos largest Fast Moving Consumer Goods (FMCG) Company This project on HUL tells us about the position of HUL in todayrsquos market scenario Various journals and newspapers have rated it as the consumer household products company and even Indiarsquos most respected company
First and foremost the purpose of HUL has been explained ie to meet the everyday needs of people everywhere
The most valuable asset to any company is the workforce This project shows how these people are acquired and how HUL retains them It also gives a detailed view of the Board and the Management Committee of HUL Next the project explains the Distribution Network of the company ie how this network evolved initially and the way in which it is conducted in the rural markets The focus then shifts to the Rural Marketing and the Relevant Technology used for the purpose
The next phase looks upon the various Business Categories of HUL ie Soaps Detergents Household Care Products Cosmetics Deodrants amp Fragrances Following this are the Brands of HUL shown in detail in a convenient format
The project further highlights on the Financial News Exports Mergers amp Acquisitions Achievements and the Latest Developments of HUL
Finally we move to our areas of major concern ndash the Hair Care products of HUL Sunsilk Shampoo has taken as the area for research and it is compared with Pantene Shampoo of Procter amp Gamble
HINDUSTAN UNILEVER LIMITEDMeeting Everyday Needs of People Everywhere
21 ABOUT THE COMPANY
Hindustan Unilever Limited (HUL) is Indiarsquos largest fast moving consumer goods company with leadership in Home amp Personal Care Products and Foods amp Beverages HULrsquos brands spread across 20 distinct consumer categories touch the lives of two out of three Indians They endow the company with a scale of combined volumes of about 4 million tones and sales of Rs10000 crores The leading business magazine Forbes Global has rated HUL as the best consumer household products company Leading national publications like The Economic Times Business World amp Business Today have also rated HUL as one of Indiarsquos most respected companies amp the number one in Market Value Added amp EVA
Hindustan Unilever Limited
Type Public company BSEHUL
Industry Fast Moving Consumer Goods (FMCG)
Founded 1933
Headquarters Mumbai India
Key peopleHarish Manwani (Chairman) Nitin Paranjpe (CEO and Managing Director)
Products Home amp Personal Care Foods Water Purifier
Revenue Rs 2086957 crore (US$ 453 billion) (2008-2009)
Employees Over 65000 direct amp indirect employees
Parent Unilever Plc
22 CORPORATE PURPOSE
The purpose of Hindustan Unilever Limited (HUL) is to meet the everyday needs of people of everywhere ndash to anticipate the aspirations of the consumers and to respond creatively and competitively with branded products and services which raise the quality of life The deep roots in local cultures and markets around the world are their unparalleled inheritance and the foundation for their future growth HUL would bring their wealth of knowledge and international expertise to the local customers ndash a truly multi ndash local multinational
The long-term success of HUL requires a total commitment to exceptional standards of performance and productivity to working together effectively and to a willingness to embrace new ideas and learn continuously
They believe that to succeed requires the highest standards of corporate behavior towards employees consumers and the societies and world in which we live
This is HULrsquos road to sustainable profitable growth for their business and long term value creation for their shareholders and employees
23 PEOPLE amp CULTURE
The story of Hindustan Unilever Limited has been chronicle of attracting holding and moulding the finest talent in India and abroad to shape an institution that stands today for the highest standards of quality innovation and service to the consumer and the country HULrsquos people have flourished in an environment marked by fairness the belief that even perfection can be improved upon and the assurance that all you need is merit in order to progress That has proved a
fertile soil indeed for it has bred people whose caliber has changed the quality of millions of Indian consumerrsquos lives
As HULrsquos Chairman Nitin Paranjpe says ldquo We are because of our values ndash truth action courage caring rdquo
24 NURTURING TALENT
Management development amp training in Hindustan Unilever Limited
A peoplersquos company
A company is nothing but the collective intellect of its people Business growth can only take place through people growth And the more a company harnesses the potential of its people the faster it will grow Equally the faster it grows the more opportunities it can create to excite and retain talent HUL has recognized this since their inception People development has always been central to HUL and its business strategy The stretch in brands reflects the stretch in peoplersquos minds The technological feats it has accomplished reflect its peoplersquos ingenuity in deriving innovations from science The value it has extracted from capital corresponds to the value its people have added to to business processes To achieve its full potential it should continue to empower its people to stretch their minds ingenuity and abilities
The Genesis
Unilever is a multilocal ndash multinational and believes that if a company has to grow its management must instinctively understand local consumer needs and aspirations
Thus the focus is on grooming managers from within the country
Nurturing top talent
To develop and retain top talent HUL have put in place a process that helps identify potential business leaders much earlier in their careers they are then placed on a fast track of personal growth
We are already creating substantially opportunities for entrepreneurial leadership for managers through far- reaching changes to the organization specially disaggregating into smaller independent business units to bring about a greater focus on growth The aim is to provide substantial business leadership opportunities for managers as and when they are ready as opposed to when they reach a certain level of seniority
OBJECTIVES OF HINDUSTAN UNILEVER LIMITED
HUL recognizes that its consumers have a sincere and legitimate interest in the
behaviour beliefs and actions of the Company behind brands in which they place
their trust and that without its consumers the Company would not exist
HUL believes that as a general rule legislation is the most effective safeguard of
responsible conduct although in certain areas additional guidance to staff in the
form of voluntary business principles is beneficial in order to ensure that the
highest standards are met throughout the organization
HUL is conscious of the fact that the success of a corporation is a reflection of the
professionalism conduct and the responsible attitude of its management and
employees Therefore recruitment of the right people and ongoing training and
development are crucial
HUL continues to maintain its commitment to follow and respect all applicable
local laws in each of its divisions
CHAPTER - 2
RESEARCH METHODOLOGY
21 Introduction
22 Research Design
23 Modes Of Data Collection and Sample Size
RESEARCH METHODOLOGY
The purpose of the project is to compare the hair care products of Hindustan Unilever Limited and Procter amp Gamble
The data was collected with the help of secondary sources
Secondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
21 INTRODUCTION
Research is a careful critical enquiry in seeking facts and diligent investigation in order to ascertain something For formulating a significant research problem the researcher should try to acquire as much knowledge of the area in which research is to be done as possible The researcher must be fully aware of the environment to which the difficulty pertains
It refers to the method adopted to collect the relevant data and other information which forms the basis of the research writing So for the effective writing of the thesis of the report the data must be quality oriented
22 RESEARCH DESIGN
Research Design is the structure of research It is the glue that holds all of the elements in a research project together This project enables summarization of a complex structure of HUL efficiently
This research design provides answers to following questions
a) What technique have been used to collect the data b) What kind of sampling have been used in this project c) How the data have been analyzed
RESEARCH DESIGN OF THE PROJECT
The research design adopted for this project is ldquo Descriptive Researchrdquo which provides an accurate snapshot of some aspect of market environment It helps in providing information about HUL and its products and services keeping in mind the changing market scenario Its features are
The objective of such a study is to answer the who what when where when and have of the subject under investigation
Descriptive studies are well ndash structured
This study tends to be rigid and its approach cannot be changed every now and then
23 MODES OF DATA COLLECTION amp SAMPLE SIZE
Data has been collected with the help of secondary sourcesSecondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
Magazines Newspapers Company Literature Websites
CHAPTER - 3
COMPANY PROFILE 31 Organisation Structure
32 Key People of HUL
33 Business Supports
34 Distribution Network
35 Business Categories
36 Brands
37 Financial Status of HUL
38 Problems Faced by HUL
31 ORGANIZATION STRUCTURE
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods (FMCG) Company It is present in Home amp Personal Care and Foods amp Beverages categories HUL and Group companies have about 41000 employees including 1550 managers
The fundamental principle determining the organization structure is to infuse speed and flexibility in decision making and implementation with empowered managers across the companyrsquos nationwide operations For this HUL is organized into self ndash sufficient profit centers supported by certain central functions and resources to leverage economies of scale wherever relevant
32 Key People Of HUL
The Board of Directors as repositories of the corporate powers act as a guardian to the Company as also the protectors of shareholderrsquos interest
This Apex body comprises of a Non- Executive Chairman four whole time Directors and five Independent Non ndash Executive Directors The Board of the Company represents the optimum mix of professionalism knowledge and experience
Mr Harish Manwani - CHAIRMAN
Mr Harish Manwani (55) assumed charge as NON ndash Executive Chairman of the company with effect from 1st july 2005
Mr Nitin Paranjpe - CEO and Managing Director
Mr Nitin Paranjpe (46) after obtaining degree in BE (Mechanical) and MBA in marketing joined the company as a management trainee in 1987
Mr RShridhar - Chief Financial Officer
Mr Shridhar Ramamurthy (45) is a Chartered Accountant (Gold Medalist) as well as Cost Accountant and Company Secretary in HUL
33 BUSINESS SUPPORTS
Hindustan Unilever Limited is regarded as one of Indiarsquos most admired companies
It is not only the brands and the people but it is also the support systems Its Research Center is the largest private sector industrial research laboratory of its kind in India HULrsquos enviable reach in the remote heartland makes its distribution web the largest of its kind in India
34 DISTRIBUTION NETWORK
Distribution systemrsquos focus to enable easy access to their brands touch consumers with a three ndash way convergence - of product availability brand communication and higher levels of brand experience
WHAT DITRIBUTION SYSTEM SHOULD DO
The most obvious function of providing the logistics support to get the companyrsquos product to the end customer Another established role is that of fina ncing The channel partners are expected to extend credit to the next level of customers Some channelmembers however also receive credit and the net credit extended is minimal
To meet the ever ndash changing needs of the consumer HUL has set up a distribution network that ensures availability of all its products in all outlets at all the times This includes maintaining favourable trade relations providing innovative incentives to retailers and organizing demand generation activities among a host of other things
Furthermore although the distribution system is common across most businesses each of the businesses has over the years fine ndash tuned the system to meet their objectives The differences therefore lie in the manner businesses use an existing distribution network and the channel players involved therein to improve their reach and service to their customers and end users For instance the distribution
model for detergents personal products and beverages are quite different from each other due to various factors
Similarly the success stories of urban markets cannot necessarily be replicated in rural markets
The evolution of HULrsquos distribution network
The evolution of HULrsquos distribution network The first place of the HUL distribution network had wholesalers placing bulk orders directly with the company Large retailers also placed direct orders which comprised almost 30 of the total orders collected
a) HULs products are distributed through a network of about 7000 redistribution stockists covering about one million retailoutlets
b) The general trade comprises grocery stores chemists wholesale kiosks and general stores
c) Hindustan Unilever provide tailor made services to each of its channel partners
d) HUL is using the point of purchase method for much higher level of direct contact through in ndash store facilitators sampling education and experience
The company salesman grouped all these orders and placed an indent with the Head Office Goods were sent to these markets with the company salesman as the consignee The salesman then collected and distributed the products to the respective wholesalers against cash payment and the money was remitted to the company
The focus of the second phase which spanned the decades of the 40s was to provide desired products and quality service to the companyrsquos customers In order to achieve this one wholesaler in each market was appointed as a ldquo Registered Wholesalerrdquo ( RW) a stock point for the companyrsquos products in that market The company salesman still covered the market canvassing for orders from the rest of the trade He would then distribute stocks from the RW through distribution units maintained by the company The RW system therefore increased the distribution reach of the company to a larger number of customers
The highlight of the third phase was the concept of ldquoRedistribution Stockistrdquo ( RS ) who replaced the RWs The RS was required to provide the distribution units to the company salesman The RS financed his stocks and provided warehousing facilities to store them The RS also undertook demand stimulation activities on behalf of the company The second characteristic of this period we realized that the RS would be able to provide customer service only if he was serviced well This knowledge led to the establishment of the ldquo Company Depotsrdquo system This system helped in transshipment bulk breaking and as a stock point to minimize stock ndash outs at the RS level
In the recent past a significant change has been the replacement of the Company Depot by a system of third party Carrying and Forwarding Agents ( CampFAs ) The CampFAs act as buffer stock ndash points to ensure that stock ndash outs did not take place The CampFA system has also resulted in cost savings in terms of direct transportation and reduced time lag in delivery The most important benefit has been improved customer service to the RS
DISTRIBUTION AT VILLAGES ( RURAL MARKETS )
The company has brought all markets with populations of below 50000 under one rural sales organization
The team comprises an exclusive sales force and exclusive redistribution stockists
The team focuses on building superior availability of products
In rural India the network directly covers about 50000 villages reaching 250 million consumers through 6000 sub - stockists
DISTRIBUTION AT THE SUPERMARKETS
HUL has set up a full ndash scale sales organization for this channel to serve modern retailing outlets
Product tests and in ndash store sampling is provided to consumers
HARNESSING INFORMATION TECHNOLOGY
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
The objective is to make the product available at the right place and right time in the most cost effective manner
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
For this stockists have been connected through an Internet-based network called RS Net for online interaction
RS Net is part of Project Leap HULs end ndash to - end supply chain
PIONEERING NEW CHANNELS
HUL is simultaneously creating new channels designed on the same principal of holistic contact with customers
1) Project Shakti HULs partnership with Self Help Groups of rural women Started in 2001 Project Shakti has already been extended to about 50000 villages in 12 states - Andhra Pradesh Karnataka Gujarat and others
2) HINDUSTAN UNILEVER NETWORK ( HUN) it is the companyrsquos arm in the Direct Selling channel It represents a range of customized offerings in Home amp Personal Care and Foods
3) Out - Of -Home this deals in providing vending machines for hot beverages like tea coffee
4) Health and Beauty Services Lakme saloons provide specialized beauty services and solutions under the recognized authority of Lakme brand The Ayush Therapy Centers provide easy access to authentic Ayurvedic treatment and products
BUSINESS PRINCIPLES
People first
Employees people and products are more important at Hindustan Unilever Limited
than systems Systems and methods while necessary and valuable in running a complex
organization should remain managerial and operational aids but should not become ends
in themselves It is a question of priorities A strong orientation toward human beings
employees and executives is a decisive if not the decisive component of long-term
success
Quality products
Our focus is on products The ultimate justification for a company is its ability to offer
products that are appealing because of their quality convenience variety and price --
products that can stand their ground even in the face of fierce competition
Long-term view
HULmakes clear distinction between strategy and tactics It gives priority to the long-
range view Long-term thinking defuses many of the conflicts and contentions among
groups this applies to employment conditions and relations with employees as well as to
the conflicts and opposing interests of the trade and the industry Of course our ability to
focus on long-term considerations is only possible if the company is successful in the
struggle for short-term survival This is why HUL strives to maintain a satisfactory level
of profits every year
Uniformity
A very important concern at HUL has to do with uniformity how consistent HULrsquos
principles policies rules of conduct and strategies should be and to what extent they
should differ depending on the country subsidiary region branch or group of products
In general HUL tries to limit the uniformity of its policy to a requisite minimum
Diversification
HUL does not want to become either a conglomerate or a portfolio manager
HUListoperate only those businesses about which it has some special knowledge and
expertise HUL is a global company not a conglomerate hodgepodge We regard
acquisitions and efforts at diversification as logical ways to supplement our business but
only in the context of a carefully considered corporate marketing policy
Flexibility and simplicity
The publics sense of the power and size of a corporation is often inaccurate for a
companys power is limited by a host of factors including legislation competition
regulatory bodies and publicity From a business point of view it is desirable for
a firm to achieve the size best suited to a specific industry or mode of
production To be competitive internationally and make significant investments in
research and technology a larger company has an advantage From a strictly
organizational point of view flexible simple structures work best and excessively
large units should be avoided whenever possible In both respects HUL has a natural
advantage Although it is a big company it is spread out over many countries and
each of HULs factories has its own management and responsibility
Packaging
Manufacturing comprises all unit operations necessary to transform perishable raw
materials into finished products with the aim to make them safe and convenient
for the consumers The manufacturing activities of the HUL
respect natural resources by efficient use of raw materials and energy
minimize waste generation and emissions
ensure environmentally safe disposal of all waste which cannot be recycled
Regular assessments of processing practices are carried out These assessments
include
evaluation of individual plant performance with regard to operations which
have an impact on the environment
definition of targets for improvement
review of plant compliance with local government regulations company
environmental standards as well as results achieved in comparison with
targets for improvement
full investigation of incidents which may affect the environment
Information on developments in environmental protection technology and practices is
disseminated as required to ensure that all plants are using the most effective
environmental practices for their type of processing This applies also for co
packers
Marketing and distribution
Marketing is based on the principle of satisfying consumer needs This is the
foundation also for the environmental marketing approach of HUL
Environmental product claims in advertising promotional material and on
packaging are in accordance with legal requirements based on solid scientific
evidence and used in a serious and reasonable manner
Our aim is to minimize wastage in communication publicity and promotional
material in particular through more precise targeting of marketing activities
Consumer promotions and merchandising material such as consumer offers in store
promotions display material leaflets printed matter etc take environmental aspects
into account
This means due consideration of environmental impact in selecting both materials
and printing methods
In distribution energy efficient and pollution controlled methods are encouraged
wherever possible
Legislation and Regulations
It is the policy of the HUL to strictly comply with all laws and regulations
relevant to our activities We participate in discussions on food legislation and
regulations between international organizations government representatives industry
the scientific world and consumer associations We also apply this policy to
environment related matters
In doing so we cooperate with legislators through local industry associations in
order to promote laws and regulations in the field of environment which are
reasonable rational realistic applicable and enforceable We oppose unjustified bans
and any other discriminatory measures
35 BUSINESS CATEGORIES
HULrsquos purpose is to meet the everyday needs of people everywhere This vision has made HUL Indiarsquos largest Packaged Mass Consumption Goods Company with leadership in Home and Personal Care Products and Foods and BeveragesIt is the countryrsquos largest marketer of Soaps Detergents and Household Care productsIts expertise in Personal Products makes it the leader in Shampoos Skin Care Products Color Cosmetics Deodorants and Fragrances
In Foods and Beverages HUL remains the undisputed market leader in Tea Processed Coffee Branded Wheat Flour Tomato Products Ice Cream Jams and squashes
In New Ventures the new entrants are in Healthcare Confectioners and Network Marketing
HUL is also one of the countryrsquos biggest exporters and has earned the distinction of a Super Star Trading House Its Exports Division is a net foreign exchange earner Among the Exports are branded Soaps and Detergents Personal Products Tea amp Coffee Basmati Rice Castor Oil and its Derivatives
36 THE BRANDS
The formulation of branding strategies starts from the building a sustainable brand for the
company This is so as the consumers buy the brand not only for the intrinsic values
associated with it but also because of the promise that branding makes to the
consumerhellipthe promise of delivering values beyond expectation A framework is
suggested below for the formulation of a brand strategy-
1 Experiential marketing
The first component of branding strategy is the experiential marketing It is a well known
fact that the customers demand experiences instead of products or services This creates a
challenge to the organizations to find new ways to involve the customers in the value
chain so that they themselves can decide the product features and uniqueness that they
expect from the brand They want to know more about the details of the brand They
remove the shells and get into the core of the processes to understand the real value of the
brand Hence such a strategy should be framed that makes the consumers involvement
higher
2 Effective Branding
It is found that effective branding involves working on four important dimensions
namely
bull The Functional Dimension- The functional dimension concerns the perception of
benefit of the product or service associated with the brand
bull The Social Dimension- The Social Dimension concern the ability to create
identification with the group
bull The Spiritual Dimension- The Spiritual Dimension is the perception of global or
local responsibility
bull The Mental Dimension- The Mental Dimension is the ability to support the
individual mentally
3 Novel Brand Strategies
bull Customers Own the Brand- It should always be kept in mind that it is the consumers
who own the brand
bull Product Service- A sale should never be considered the ending of a transaction but the
beginning of a beautiful relationship Customer service basically creates a positive effect
on the minds of the customer and this positive influence on the mind of the consumer
makes them more open to new ideas and reduces their skeptic towards the brand
bull Buzz Marketing- The development in the technology used in the country has lead to
the increased importance paid to the concept of buzz marketing Branding increasingly
nowadays is moving into Internet-based applications
bull Religious Branding- since it is considered that religion has the power to bind people
and unify them under one common ideal an effective brand strategy must take into
account this powerful force which plays on the minds of the Indian consumers
4 Feedback and Improvements
It is very crucial to have the consumer participation In order to succeed in the long run it is crucial to allow the consumer participation at an intermediary stage of developing the product This will lead to creation of a better relationship between the company and its consumer
MARKETING STRATEGIES
Hindustan Unilever Limited has adopted a four pronged growth strategy -
1 Gunning the market with new products and brand extensions
2 Expansion of the distribution network to small towns for extensive
availability
3 Reduce prices and introduce smaller packages for products to
make them more affordable (a tool to enter price sensitive markets)
4 Focus on employ training and develop a positive attitude through
enhanced manpower development
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
CHAPTER - 1
INTRODUCTION
11 About the Company
12 Corporate Purpose
13 People and Culture
14 Nurturing Talent
OBJECTIVES OF THE PROJECT
To study the perception about the Hair Care products of HUL
To know the level of awareness among consumers about HUL
To study the comparison between HULrsquos hair care product Sunsilk and its competitor Proctor amp Gamblersquos Pantene
EXECUTIVE SUMMARY
Hindustan Unilever Limited (HUL) is Indiarsquos largest Fast Moving Consumer Goods (FMCG) Company This project on HUL tells us about the position of HUL in todayrsquos market scenario Various journals and newspapers have rated it as the consumer household products company and even Indiarsquos most respected company
First and foremost the purpose of HUL has been explained ie to meet the everyday needs of people everywhere
The most valuable asset to any company is the workforce This project shows how these people are acquired and how HUL retains them It also gives a detailed view of the Board and the Management Committee of HUL Next the project explains the Distribution Network of the company ie how this network evolved initially and the way in which it is conducted in the rural markets The focus then shifts to the Rural Marketing and the Relevant Technology used for the purpose
The next phase looks upon the various Business Categories of HUL ie Soaps Detergents Household Care Products Cosmetics Deodrants amp Fragrances Following this are the Brands of HUL shown in detail in a convenient format
The project further highlights on the Financial News Exports Mergers amp Acquisitions Achievements and the Latest Developments of HUL
Finally we move to our areas of major concern ndash the Hair Care products of HUL Sunsilk Shampoo has taken as the area for research and it is compared with Pantene Shampoo of Procter amp Gamble
HINDUSTAN UNILEVER LIMITEDMeeting Everyday Needs of People Everywhere
21 ABOUT THE COMPANY
Hindustan Unilever Limited (HUL) is Indiarsquos largest fast moving consumer goods company with leadership in Home amp Personal Care Products and Foods amp Beverages HULrsquos brands spread across 20 distinct consumer categories touch the lives of two out of three Indians They endow the company with a scale of combined volumes of about 4 million tones and sales of Rs10000 crores The leading business magazine Forbes Global has rated HUL as the best consumer household products company Leading national publications like The Economic Times Business World amp Business Today have also rated HUL as one of Indiarsquos most respected companies amp the number one in Market Value Added amp EVA
Hindustan Unilever Limited
Type Public company BSEHUL
Industry Fast Moving Consumer Goods (FMCG)
Founded 1933
Headquarters Mumbai India
Key peopleHarish Manwani (Chairman) Nitin Paranjpe (CEO and Managing Director)
Products Home amp Personal Care Foods Water Purifier
Revenue Rs 2086957 crore (US$ 453 billion) (2008-2009)
Employees Over 65000 direct amp indirect employees
Parent Unilever Plc
22 CORPORATE PURPOSE
The purpose of Hindustan Unilever Limited (HUL) is to meet the everyday needs of people of everywhere ndash to anticipate the aspirations of the consumers and to respond creatively and competitively with branded products and services which raise the quality of life The deep roots in local cultures and markets around the world are their unparalleled inheritance and the foundation for their future growth HUL would bring their wealth of knowledge and international expertise to the local customers ndash a truly multi ndash local multinational
The long-term success of HUL requires a total commitment to exceptional standards of performance and productivity to working together effectively and to a willingness to embrace new ideas and learn continuously
They believe that to succeed requires the highest standards of corporate behavior towards employees consumers and the societies and world in which we live
This is HULrsquos road to sustainable profitable growth for their business and long term value creation for their shareholders and employees
23 PEOPLE amp CULTURE
The story of Hindustan Unilever Limited has been chronicle of attracting holding and moulding the finest talent in India and abroad to shape an institution that stands today for the highest standards of quality innovation and service to the consumer and the country HULrsquos people have flourished in an environment marked by fairness the belief that even perfection can be improved upon and the assurance that all you need is merit in order to progress That has proved a
fertile soil indeed for it has bred people whose caliber has changed the quality of millions of Indian consumerrsquos lives
As HULrsquos Chairman Nitin Paranjpe says ldquo We are because of our values ndash truth action courage caring rdquo
24 NURTURING TALENT
Management development amp training in Hindustan Unilever Limited
A peoplersquos company
A company is nothing but the collective intellect of its people Business growth can only take place through people growth And the more a company harnesses the potential of its people the faster it will grow Equally the faster it grows the more opportunities it can create to excite and retain talent HUL has recognized this since their inception People development has always been central to HUL and its business strategy The stretch in brands reflects the stretch in peoplersquos minds The technological feats it has accomplished reflect its peoplersquos ingenuity in deriving innovations from science The value it has extracted from capital corresponds to the value its people have added to to business processes To achieve its full potential it should continue to empower its people to stretch their minds ingenuity and abilities
The Genesis
Unilever is a multilocal ndash multinational and believes that if a company has to grow its management must instinctively understand local consumer needs and aspirations
Thus the focus is on grooming managers from within the country
Nurturing top talent
To develop and retain top talent HUL have put in place a process that helps identify potential business leaders much earlier in their careers they are then placed on a fast track of personal growth
We are already creating substantially opportunities for entrepreneurial leadership for managers through far- reaching changes to the organization specially disaggregating into smaller independent business units to bring about a greater focus on growth The aim is to provide substantial business leadership opportunities for managers as and when they are ready as opposed to when they reach a certain level of seniority
OBJECTIVES OF HINDUSTAN UNILEVER LIMITED
HUL recognizes that its consumers have a sincere and legitimate interest in the
behaviour beliefs and actions of the Company behind brands in which they place
their trust and that without its consumers the Company would not exist
HUL believes that as a general rule legislation is the most effective safeguard of
responsible conduct although in certain areas additional guidance to staff in the
form of voluntary business principles is beneficial in order to ensure that the
highest standards are met throughout the organization
HUL is conscious of the fact that the success of a corporation is a reflection of the
professionalism conduct and the responsible attitude of its management and
employees Therefore recruitment of the right people and ongoing training and
development are crucial
HUL continues to maintain its commitment to follow and respect all applicable
local laws in each of its divisions
CHAPTER - 2
RESEARCH METHODOLOGY
21 Introduction
22 Research Design
23 Modes Of Data Collection and Sample Size
RESEARCH METHODOLOGY
The purpose of the project is to compare the hair care products of Hindustan Unilever Limited and Procter amp Gamble
The data was collected with the help of secondary sources
Secondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
21 INTRODUCTION
Research is a careful critical enquiry in seeking facts and diligent investigation in order to ascertain something For formulating a significant research problem the researcher should try to acquire as much knowledge of the area in which research is to be done as possible The researcher must be fully aware of the environment to which the difficulty pertains
It refers to the method adopted to collect the relevant data and other information which forms the basis of the research writing So for the effective writing of the thesis of the report the data must be quality oriented
22 RESEARCH DESIGN
Research Design is the structure of research It is the glue that holds all of the elements in a research project together This project enables summarization of a complex structure of HUL efficiently
This research design provides answers to following questions
a) What technique have been used to collect the data b) What kind of sampling have been used in this project c) How the data have been analyzed
RESEARCH DESIGN OF THE PROJECT
The research design adopted for this project is ldquo Descriptive Researchrdquo which provides an accurate snapshot of some aspect of market environment It helps in providing information about HUL and its products and services keeping in mind the changing market scenario Its features are
The objective of such a study is to answer the who what when where when and have of the subject under investigation
Descriptive studies are well ndash structured
This study tends to be rigid and its approach cannot be changed every now and then
23 MODES OF DATA COLLECTION amp SAMPLE SIZE
Data has been collected with the help of secondary sourcesSecondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
Magazines Newspapers Company Literature Websites
CHAPTER - 3
COMPANY PROFILE 31 Organisation Structure
32 Key People of HUL
33 Business Supports
34 Distribution Network
35 Business Categories
36 Brands
37 Financial Status of HUL
38 Problems Faced by HUL
31 ORGANIZATION STRUCTURE
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods (FMCG) Company It is present in Home amp Personal Care and Foods amp Beverages categories HUL and Group companies have about 41000 employees including 1550 managers
The fundamental principle determining the organization structure is to infuse speed and flexibility in decision making and implementation with empowered managers across the companyrsquos nationwide operations For this HUL is organized into self ndash sufficient profit centers supported by certain central functions and resources to leverage economies of scale wherever relevant
32 Key People Of HUL
The Board of Directors as repositories of the corporate powers act as a guardian to the Company as also the protectors of shareholderrsquos interest
This Apex body comprises of a Non- Executive Chairman four whole time Directors and five Independent Non ndash Executive Directors The Board of the Company represents the optimum mix of professionalism knowledge and experience
Mr Harish Manwani - CHAIRMAN
Mr Harish Manwani (55) assumed charge as NON ndash Executive Chairman of the company with effect from 1st july 2005
Mr Nitin Paranjpe - CEO and Managing Director
Mr Nitin Paranjpe (46) after obtaining degree in BE (Mechanical) and MBA in marketing joined the company as a management trainee in 1987
Mr RShridhar - Chief Financial Officer
Mr Shridhar Ramamurthy (45) is a Chartered Accountant (Gold Medalist) as well as Cost Accountant and Company Secretary in HUL
33 BUSINESS SUPPORTS
Hindustan Unilever Limited is regarded as one of Indiarsquos most admired companies
It is not only the brands and the people but it is also the support systems Its Research Center is the largest private sector industrial research laboratory of its kind in India HULrsquos enviable reach in the remote heartland makes its distribution web the largest of its kind in India
34 DISTRIBUTION NETWORK
Distribution systemrsquos focus to enable easy access to their brands touch consumers with a three ndash way convergence - of product availability brand communication and higher levels of brand experience
WHAT DITRIBUTION SYSTEM SHOULD DO
The most obvious function of providing the logistics support to get the companyrsquos product to the end customer Another established role is that of fina ncing The channel partners are expected to extend credit to the next level of customers Some channelmembers however also receive credit and the net credit extended is minimal
To meet the ever ndash changing needs of the consumer HUL has set up a distribution network that ensures availability of all its products in all outlets at all the times This includes maintaining favourable trade relations providing innovative incentives to retailers and organizing demand generation activities among a host of other things
Furthermore although the distribution system is common across most businesses each of the businesses has over the years fine ndash tuned the system to meet their objectives The differences therefore lie in the manner businesses use an existing distribution network and the channel players involved therein to improve their reach and service to their customers and end users For instance the distribution
model for detergents personal products and beverages are quite different from each other due to various factors
Similarly the success stories of urban markets cannot necessarily be replicated in rural markets
The evolution of HULrsquos distribution network
The evolution of HULrsquos distribution network The first place of the HUL distribution network had wholesalers placing bulk orders directly with the company Large retailers also placed direct orders which comprised almost 30 of the total orders collected
a) HULs products are distributed through a network of about 7000 redistribution stockists covering about one million retailoutlets
b) The general trade comprises grocery stores chemists wholesale kiosks and general stores
c) Hindustan Unilever provide tailor made services to each of its channel partners
d) HUL is using the point of purchase method for much higher level of direct contact through in ndash store facilitators sampling education and experience
The company salesman grouped all these orders and placed an indent with the Head Office Goods were sent to these markets with the company salesman as the consignee The salesman then collected and distributed the products to the respective wholesalers against cash payment and the money was remitted to the company
The focus of the second phase which spanned the decades of the 40s was to provide desired products and quality service to the companyrsquos customers In order to achieve this one wholesaler in each market was appointed as a ldquo Registered Wholesalerrdquo ( RW) a stock point for the companyrsquos products in that market The company salesman still covered the market canvassing for orders from the rest of the trade He would then distribute stocks from the RW through distribution units maintained by the company The RW system therefore increased the distribution reach of the company to a larger number of customers
The highlight of the third phase was the concept of ldquoRedistribution Stockistrdquo ( RS ) who replaced the RWs The RS was required to provide the distribution units to the company salesman The RS financed his stocks and provided warehousing facilities to store them The RS also undertook demand stimulation activities on behalf of the company The second characteristic of this period we realized that the RS would be able to provide customer service only if he was serviced well This knowledge led to the establishment of the ldquo Company Depotsrdquo system This system helped in transshipment bulk breaking and as a stock point to minimize stock ndash outs at the RS level
In the recent past a significant change has been the replacement of the Company Depot by a system of third party Carrying and Forwarding Agents ( CampFAs ) The CampFAs act as buffer stock ndash points to ensure that stock ndash outs did not take place The CampFA system has also resulted in cost savings in terms of direct transportation and reduced time lag in delivery The most important benefit has been improved customer service to the RS
DISTRIBUTION AT VILLAGES ( RURAL MARKETS )
The company has brought all markets with populations of below 50000 under one rural sales organization
The team comprises an exclusive sales force and exclusive redistribution stockists
The team focuses on building superior availability of products
In rural India the network directly covers about 50000 villages reaching 250 million consumers through 6000 sub - stockists
DISTRIBUTION AT THE SUPERMARKETS
HUL has set up a full ndash scale sales organization for this channel to serve modern retailing outlets
Product tests and in ndash store sampling is provided to consumers
HARNESSING INFORMATION TECHNOLOGY
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
The objective is to make the product available at the right place and right time in the most cost effective manner
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
For this stockists have been connected through an Internet-based network called RS Net for online interaction
RS Net is part of Project Leap HULs end ndash to - end supply chain
PIONEERING NEW CHANNELS
HUL is simultaneously creating new channels designed on the same principal of holistic contact with customers
1) Project Shakti HULs partnership with Self Help Groups of rural women Started in 2001 Project Shakti has already been extended to about 50000 villages in 12 states - Andhra Pradesh Karnataka Gujarat and others
2) HINDUSTAN UNILEVER NETWORK ( HUN) it is the companyrsquos arm in the Direct Selling channel It represents a range of customized offerings in Home amp Personal Care and Foods
3) Out - Of -Home this deals in providing vending machines for hot beverages like tea coffee
4) Health and Beauty Services Lakme saloons provide specialized beauty services and solutions under the recognized authority of Lakme brand The Ayush Therapy Centers provide easy access to authentic Ayurvedic treatment and products
BUSINESS PRINCIPLES
People first
Employees people and products are more important at Hindustan Unilever Limited
than systems Systems and methods while necessary and valuable in running a complex
organization should remain managerial and operational aids but should not become ends
in themselves It is a question of priorities A strong orientation toward human beings
employees and executives is a decisive if not the decisive component of long-term
success
Quality products
Our focus is on products The ultimate justification for a company is its ability to offer
products that are appealing because of their quality convenience variety and price --
products that can stand their ground even in the face of fierce competition
Long-term view
HULmakes clear distinction between strategy and tactics It gives priority to the long-
range view Long-term thinking defuses many of the conflicts and contentions among
groups this applies to employment conditions and relations with employees as well as to
the conflicts and opposing interests of the trade and the industry Of course our ability to
focus on long-term considerations is only possible if the company is successful in the
struggle for short-term survival This is why HUL strives to maintain a satisfactory level
of profits every year
Uniformity
A very important concern at HUL has to do with uniformity how consistent HULrsquos
principles policies rules of conduct and strategies should be and to what extent they
should differ depending on the country subsidiary region branch or group of products
In general HUL tries to limit the uniformity of its policy to a requisite minimum
Diversification
HUL does not want to become either a conglomerate or a portfolio manager
HUListoperate only those businesses about which it has some special knowledge and
expertise HUL is a global company not a conglomerate hodgepodge We regard
acquisitions and efforts at diversification as logical ways to supplement our business but
only in the context of a carefully considered corporate marketing policy
Flexibility and simplicity
The publics sense of the power and size of a corporation is often inaccurate for a
companys power is limited by a host of factors including legislation competition
regulatory bodies and publicity From a business point of view it is desirable for
a firm to achieve the size best suited to a specific industry or mode of
production To be competitive internationally and make significant investments in
research and technology a larger company has an advantage From a strictly
organizational point of view flexible simple structures work best and excessively
large units should be avoided whenever possible In both respects HUL has a natural
advantage Although it is a big company it is spread out over many countries and
each of HULs factories has its own management and responsibility
Packaging
Manufacturing comprises all unit operations necessary to transform perishable raw
materials into finished products with the aim to make them safe and convenient
for the consumers The manufacturing activities of the HUL
respect natural resources by efficient use of raw materials and energy
minimize waste generation and emissions
ensure environmentally safe disposal of all waste which cannot be recycled
Regular assessments of processing practices are carried out These assessments
include
evaluation of individual plant performance with regard to operations which
have an impact on the environment
definition of targets for improvement
review of plant compliance with local government regulations company
environmental standards as well as results achieved in comparison with
targets for improvement
full investigation of incidents which may affect the environment
Information on developments in environmental protection technology and practices is
disseminated as required to ensure that all plants are using the most effective
environmental practices for their type of processing This applies also for co
packers
Marketing and distribution
Marketing is based on the principle of satisfying consumer needs This is the
foundation also for the environmental marketing approach of HUL
Environmental product claims in advertising promotional material and on
packaging are in accordance with legal requirements based on solid scientific
evidence and used in a serious and reasonable manner
Our aim is to minimize wastage in communication publicity and promotional
material in particular through more precise targeting of marketing activities
Consumer promotions and merchandising material such as consumer offers in store
promotions display material leaflets printed matter etc take environmental aspects
into account
This means due consideration of environmental impact in selecting both materials
and printing methods
In distribution energy efficient and pollution controlled methods are encouraged
wherever possible
Legislation and Regulations
It is the policy of the HUL to strictly comply with all laws and regulations
relevant to our activities We participate in discussions on food legislation and
regulations between international organizations government representatives industry
the scientific world and consumer associations We also apply this policy to
environment related matters
In doing so we cooperate with legislators through local industry associations in
order to promote laws and regulations in the field of environment which are
reasonable rational realistic applicable and enforceable We oppose unjustified bans
and any other discriminatory measures
35 BUSINESS CATEGORIES
HULrsquos purpose is to meet the everyday needs of people everywhere This vision has made HUL Indiarsquos largest Packaged Mass Consumption Goods Company with leadership in Home and Personal Care Products and Foods and BeveragesIt is the countryrsquos largest marketer of Soaps Detergents and Household Care productsIts expertise in Personal Products makes it the leader in Shampoos Skin Care Products Color Cosmetics Deodorants and Fragrances
In Foods and Beverages HUL remains the undisputed market leader in Tea Processed Coffee Branded Wheat Flour Tomato Products Ice Cream Jams and squashes
In New Ventures the new entrants are in Healthcare Confectioners and Network Marketing
HUL is also one of the countryrsquos biggest exporters and has earned the distinction of a Super Star Trading House Its Exports Division is a net foreign exchange earner Among the Exports are branded Soaps and Detergents Personal Products Tea amp Coffee Basmati Rice Castor Oil and its Derivatives
36 THE BRANDS
The formulation of branding strategies starts from the building a sustainable brand for the
company This is so as the consumers buy the brand not only for the intrinsic values
associated with it but also because of the promise that branding makes to the
consumerhellipthe promise of delivering values beyond expectation A framework is
suggested below for the formulation of a brand strategy-
1 Experiential marketing
The first component of branding strategy is the experiential marketing It is a well known
fact that the customers demand experiences instead of products or services This creates a
challenge to the organizations to find new ways to involve the customers in the value
chain so that they themselves can decide the product features and uniqueness that they
expect from the brand They want to know more about the details of the brand They
remove the shells and get into the core of the processes to understand the real value of the
brand Hence such a strategy should be framed that makes the consumers involvement
higher
2 Effective Branding
It is found that effective branding involves working on four important dimensions
namely
bull The Functional Dimension- The functional dimension concerns the perception of
benefit of the product or service associated with the brand
bull The Social Dimension- The Social Dimension concern the ability to create
identification with the group
bull The Spiritual Dimension- The Spiritual Dimension is the perception of global or
local responsibility
bull The Mental Dimension- The Mental Dimension is the ability to support the
individual mentally
3 Novel Brand Strategies
bull Customers Own the Brand- It should always be kept in mind that it is the consumers
who own the brand
bull Product Service- A sale should never be considered the ending of a transaction but the
beginning of a beautiful relationship Customer service basically creates a positive effect
on the minds of the customer and this positive influence on the mind of the consumer
makes them more open to new ideas and reduces their skeptic towards the brand
bull Buzz Marketing- The development in the technology used in the country has lead to
the increased importance paid to the concept of buzz marketing Branding increasingly
nowadays is moving into Internet-based applications
bull Religious Branding- since it is considered that religion has the power to bind people
and unify them under one common ideal an effective brand strategy must take into
account this powerful force which plays on the minds of the Indian consumers
4 Feedback and Improvements
It is very crucial to have the consumer participation In order to succeed in the long run it is crucial to allow the consumer participation at an intermediary stage of developing the product This will lead to creation of a better relationship between the company and its consumer
MARKETING STRATEGIES
Hindustan Unilever Limited has adopted a four pronged growth strategy -
1 Gunning the market with new products and brand extensions
2 Expansion of the distribution network to small towns for extensive
availability
3 Reduce prices and introduce smaller packages for products to
make them more affordable (a tool to enter price sensitive markets)
4 Focus on employ training and develop a positive attitude through
enhanced manpower development
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
OBJECTIVES OF THE PROJECT
To study the perception about the Hair Care products of HUL
To know the level of awareness among consumers about HUL
To study the comparison between HULrsquos hair care product Sunsilk and its competitor Proctor amp Gamblersquos Pantene
EXECUTIVE SUMMARY
Hindustan Unilever Limited (HUL) is Indiarsquos largest Fast Moving Consumer Goods (FMCG) Company This project on HUL tells us about the position of HUL in todayrsquos market scenario Various journals and newspapers have rated it as the consumer household products company and even Indiarsquos most respected company
First and foremost the purpose of HUL has been explained ie to meet the everyday needs of people everywhere
The most valuable asset to any company is the workforce This project shows how these people are acquired and how HUL retains them It also gives a detailed view of the Board and the Management Committee of HUL Next the project explains the Distribution Network of the company ie how this network evolved initially and the way in which it is conducted in the rural markets The focus then shifts to the Rural Marketing and the Relevant Technology used for the purpose
The next phase looks upon the various Business Categories of HUL ie Soaps Detergents Household Care Products Cosmetics Deodrants amp Fragrances Following this are the Brands of HUL shown in detail in a convenient format
The project further highlights on the Financial News Exports Mergers amp Acquisitions Achievements and the Latest Developments of HUL
Finally we move to our areas of major concern ndash the Hair Care products of HUL Sunsilk Shampoo has taken as the area for research and it is compared with Pantene Shampoo of Procter amp Gamble
HINDUSTAN UNILEVER LIMITEDMeeting Everyday Needs of People Everywhere
21 ABOUT THE COMPANY
Hindustan Unilever Limited (HUL) is Indiarsquos largest fast moving consumer goods company with leadership in Home amp Personal Care Products and Foods amp Beverages HULrsquos brands spread across 20 distinct consumer categories touch the lives of two out of three Indians They endow the company with a scale of combined volumes of about 4 million tones and sales of Rs10000 crores The leading business magazine Forbes Global has rated HUL as the best consumer household products company Leading national publications like The Economic Times Business World amp Business Today have also rated HUL as one of Indiarsquos most respected companies amp the number one in Market Value Added amp EVA
Hindustan Unilever Limited
Type Public company BSEHUL
Industry Fast Moving Consumer Goods (FMCG)
Founded 1933
Headquarters Mumbai India
Key peopleHarish Manwani (Chairman) Nitin Paranjpe (CEO and Managing Director)
Products Home amp Personal Care Foods Water Purifier
Revenue Rs 2086957 crore (US$ 453 billion) (2008-2009)
Employees Over 65000 direct amp indirect employees
Parent Unilever Plc
22 CORPORATE PURPOSE
The purpose of Hindustan Unilever Limited (HUL) is to meet the everyday needs of people of everywhere ndash to anticipate the aspirations of the consumers and to respond creatively and competitively with branded products and services which raise the quality of life The deep roots in local cultures and markets around the world are their unparalleled inheritance and the foundation for their future growth HUL would bring their wealth of knowledge and international expertise to the local customers ndash a truly multi ndash local multinational
The long-term success of HUL requires a total commitment to exceptional standards of performance and productivity to working together effectively and to a willingness to embrace new ideas and learn continuously
They believe that to succeed requires the highest standards of corporate behavior towards employees consumers and the societies and world in which we live
This is HULrsquos road to sustainable profitable growth for their business and long term value creation for their shareholders and employees
23 PEOPLE amp CULTURE
The story of Hindustan Unilever Limited has been chronicle of attracting holding and moulding the finest talent in India and abroad to shape an institution that stands today for the highest standards of quality innovation and service to the consumer and the country HULrsquos people have flourished in an environment marked by fairness the belief that even perfection can be improved upon and the assurance that all you need is merit in order to progress That has proved a
fertile soil indeed for it has bred people whose caliber has changed the quality of millions of Indian consumerrsquos lives
As HULrsquos Chairman Nitin Paranjpe says ldquo We are because of our values ndash truth action courage caring rdquo
24 NURTURING TALENT
Management development amp training in Hindustan Unilever Limited
A peoplersquos company
A company is nothing but the collective intellect of its people Business growth can only take place through people growth And the more a company harnesses the potential of its people the faster it will grow Equally the faster it grows the more opportunities it can create to excite and retain talent HUL has recognized this since their inception People development has always been central to HUL and its business strategy The stretch in brands reflects the stretch in peoplersquos minds The technological feats it has accomplished reflect its peoplersquos ingenuity in deriving innovations from science The value it has extracted from capital corresponds to the value its people have added to to business processes To achieve its full potential it should continue to empower its people to stretch their minds ingenuity and abilities
The Genesis
Unilever is a multilocal ndash multinational and believes that if a company has to grow its management must instinctively understand local consumer needs and aspirations
Thus the focus is on grooming managers from within the country
Nurturing top talent
To develop and retain top talent HUL have put in place a process that helps identify potential business leaders much earlier in their careers they are then placed on a fast track of personal growth
We are already creating substantially opportunities for entrepreneurial leadership for managers through far- reaching changes to the organization specially disaggregating into smaller independent business units to bring about a greater focus on growth The aim is to provide substantial business leadership opportunities for managers as and when they are ready as opposed to when they reach a certain level of seniority
OBJECTIVES OF HINDUSTAN UNILEVER LIMITED
HUL recognizes that its consumers have a sincere and legitimate interest in the
behaviour beliefs and actions of the Company behind brands in which they place
their trust and that without its consumers the Company would not exist
HUL believes that as a general rule legislation is the most effective safeguard of
responsible conduct although in certain areas additional guidance to staff in the
form of voluntary business principles is beneficial in order to ensure that the
highest standards are met throughout the organization
HUL is conscious of the fact that the success of a corporation is a reflection of the
professionalism conduct and the responsible attitude of its management and
employees Therefore recruitment of the right people and ongoing training and
development are crucial
HUL continues to maintain its commitment to follow and respect all applicable
local laws in each of its divisions
CHAPTER - 2
RESEARCH METHODOLOGY
21 Introduction
22 Research Design
23 Modes Of Data Collection and Sample Size
RESEARCH METHODOLOGY
The purpose of the project is to compare the hair care products of Hindustan Unilever Limited and Procter amp Gamble
The data was collected with the help of secondary sources
Secondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
21 INTRODUCTION
Research is a careful critical enquiry in seeking facts and diligent investigation in order to ascertain something For formulating a significant research problem the researcher should try to acquire as much knowledge of the area in which research is to be done as possible The researcher must be fully aware of the environment to which the difficulty pertains
It refers to the method adopted to collect the relevant data and other information which forms the basis of the research writing So for the effective writing of the thesis of the report the data must be quality oriented
22 RESEARCH DESIGN
Research Design is the structure of research It is the glue that holds all of the elements in a research project together This project enables summarization of a complex structure of HUL efficiently
This research design provides answers to following questions
a) What technique have been used to collect the data b) What kind of sampling have been used in this project c) How the data have been analyzed
RESEARCH DESIGN OF THE PROJECT
The research design adopted for this project is ldquo Descriptive Researchrdquo which provides an accurate snapshot of some aspect of market environment It helps in providing information about HUL and its products and services keeping in mind the changing market scenario Its features are
The objective of such a study is to answer the who what when where when and have of the subject under investigation
Descriptive studies are well ndash structured
This study tends to be rigid and its approach cannot be changed every now and then
23 MODES OF DATA COLLECTION amp SAMPLE SIZE
Data has been collected with the help of secondary sourcesSecondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
Magazines Newspapers Company Literature Websites
CHAPTER - 3
COMPANY PROFILE 31 Organisation Structure
32 Key People of HUL
33 Business Supports
34 Distribution Network
35 Business Categories
36 Brands
37 Financial Status of HUL
38 Problems Faced by HUL
31 ORGANIZATION STRUCTURE
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods (FMCG) Company It is present in Home amp Personal Care and Foods amp Beverages categories HUL and Group companies have about 41000 employees including 1550 managers
The fundamental principle determining the organization structure is to infuse speed and flexibility in decision making and implementation with empowered managers across the companyrsquos nationwide operations For this HUL is organized into self ndash sufficient profit centers supported by certain central functions and resources to leverage economies of scale wherever relevant
32 Key People Of HUL
The Board of Directors as repositories of the corporate powers act as a guardian to the Company as also the protectors of shareholderrsquos interest
This Apex body comprises of a Non- Executive Chairman four whole time Directors and five Independent Non ndash Executive Directors The Board of the Company represents the optimum mix of professionalism knowledge and experience
Mr Harish Manwani - CHAIRMAN
Mr Harish Manwani (55) assumed charge as NON ndash Executive Chairman of the company with effect from 1st july 2005
Mr Nitin Paranjpe - CEO and Managing Director
Mr Nitin Paranjpe (46) after obtaining degree in BE (Mechanical) and MBA in marketing joined the company as a management trainee in 1987
Mr RShridhar - Chief Financial Officer
Mr Shridhar Ramamurthy (45) is a Chartered Accountant (Gold Medalist) as well as Cost Accountant and Company Secretary in HUL
33 BUSINESS SUPPORTS
Hindustan Unilever Limited is regarded as one of Indiarsquos most admired companies
It is not only the brands and the people but it is also the support systems Its Research Center is the largest private sector industrial research laboratory of its kind in India HULrsquos enviable reach in the remote heartland makes its distribution web the largest of its kind in India
34 DISTRIBUTION NETWORK
Distribution systemrsquos focus to enable easy access to their brands touch consumers with a three ndash way convergence - of product availability brand communication and higher levels of brand experience
WHAT DITRIBUTION SYSTEM SHOULD DO
The most obvious function of providing the logistics support to get the companyrsquos product to the end customer Another established role is that of fina ncing The channel partners are expected to extend credit to the next level of customers Some channelmembers however also receive credit and the net credit extended is minimal
To meet the ever ndash changing needs of the consumer HUL has set up a distribution network that ensures availability of all its products in all outlets at all the times This includes maintaining favourable trade relations providing innovative incentives to retailers and organizing demand generation activities among a host of other things
Furthermore although the distribution system is common across most businesses each of the businesses has over the years fine ndash tuned the system to meet their objectives The differences therefore lie in the manner businesses use an existing distribution network and the channel players involved therein to improve their reach and service to their customers and end users For instance the distribution
model for detergents personal products and beverages are quite different from each other due to various factors
Similarly the success stories of urban markets cannot necessarily be replicated in rural markets
The evolution of HULrsquos distribution network
The evolution of HULrsquos distribution network The first place of the HUL distribution network had wholesalers placing bulk orders directly with the company Large retailers also placed direct orders which comprised almost 30 of the total orders collected
a) HULs products are distributed through a network of about 7000 redistribution stockists covering about one million retailoutlets
b) The general trade comprises grocery stores chemists wholesale kiosks and general stores
c) Hindustan Unilever provide tailor made services to each of its channel partners
d) HUL is using the point of purchase method for much higher level of direct contact through in ndash store facilitators sampling education and experience
The company salesman grouped all these orders and placed an indent with the Head Office Goods were sent to these markets with the company salesman as the consignee The salesman then collected and distributed the products to the respective wholesalers against cash payment and the money was remitted to the company
The focus of the second phase which spanned the decades of the 40s was to provide desired products and quality service to the companyrsquos customers In order to achieve this one wholesaler in each market was appointed as a ldquo Registered Wholesalerrdquo ( RW) a stock point for the companyrsquos products in that market The company salesman still covered the market canvassing for orders from the rest of the trade He would then distribute stocks from the RW through distribution units maintained by the company The RW system therefore increased the distribution reach of the company to a larger number of customers
The highlight of the third phase was the concept of ldquoRedistribution Stockistrdquo ( RS ) who replaced the RWs The RS was required to provide the distribution units to the company salesman The RS financed his stocks and provided warehousing facilities to store them The RS also undertook demand stimulation activities on behalf of the company The second characteristic of this period we realized that the RS would be able to provide customer service only if he was serviced well This knowledge led to the establishment of the ldquo Company Depotsrdquo system This system helped in transshipment bulk breaking and as a stock point to minimize stock ndash outs at the RS level
In the recent past a significant change has been the replacement of the Company Depot by a system of third party Carrying and Forwarding Agents ( CampFAs ) The CampFAs act as buffer stock ndash points to ensure that stock ndash outs did not take place The CampFA system has also resulted in cost savings in terms of direct transportation and reduced time lag in delivery The most important benefit has been improved customer service to the RS
DISTRIBUTION AT VILLAGES ( RURAL MARKETS )
The company has brought all markets with populations of below 50000 under one rural sales organization
The team comprises an exclusive sales force and exclusive redistribution stockists
The team focuses on building superior availability of products
In rural India the network directly covers about 50000 villages reaching 250 million consumers through 6000 sub - stockists
DISTRIBUTION AT THE SUPERMARKETS
HUL has set up a full ndash scale sales organization for this channel to serve modern retailing outlets
Product tests and in ndash store sampling is provided to consumers
HARNESSING INFORMATION TECHNOLOGY
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
The objective is to make the product available at the right place and right time in the most cost effective manner
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
For this stockists have been connected through an Internet-based network called RS Net for online interaction
RS Net is part of Project Leap HULs end ndash to - end supply chain
PIONEERING NEW CHANNELS
HUL is simultaneously creating new channels designed on the same principal of holistic contact with customers
1) Project Shakti HULs partnership with Self Help Groups of rural women Started in 2001 Project Shakti has already been extended to about 50000 villages in 12 states - Andhra Pradesh Karnataka Gujarat and others
2) HINDUSTAN UNILEVER NETWORK ( HUN) it is the companyrsquos arm in the Direct Selling channel It represents a range of customized offerings in Home amp Personal Care and Foods
3) Out - Of -Home this deals in providing vending machines for hot beverages like tea coffee
4) Health and Beauty Services Lakme saloons provide specialized beauty services and solutions under the recognized authority of Lakme brand The Ayush Therapy Centers provide easy access to authentic Ayurvedic treatment and products
BUSINESS PRINCIPLES
People first
Employees people and products are more important at Hindustan Unilever Limited
than systems Systems and methods while necessary and valuable in running a complex
organization should remain managerial and operational aids but should not become ends
in themselves It is a question of priorities A strong orientation toward human beings
employees and executives is a decisive if not the decisive component of long-term
success
Quality products
Our focus is on products The ultimate justification for a company is its ability to offer
products that are appealing because of their quality convenience variety and price --
products that can stand their ground even in the face of fierce competition
Long-term view
HULmakes clear distinction between strategy and tactics It gives priority to the long-
range view Long-term thinking defuses many of the conflicts and contentions among
groups this applies to employment conditions and relations with employees as well as to
the conflicts and opposing interests of the trade and the industry Of course our ability to
focus on long-term considerations is only possible if the company is successful in the
struggle for short-term survival This is why HUL strives to maintain a satisfactory level
of profits every year
Uniformity
A very important concern at HUL has to do with uniformity how consistent HULrsquos
principles policies rules of conduct and strategies should be and to what extent they
should differ depending on the country subsidiary region branch or group of products
In general HUL tries to limit the uniformity of its policy to a requisite minimum
Diversification
HUL does not want to become either a conglomerate or a portfolio manager
HUListoperate only those businesses about which it has some special knowledge and
expertise HUL is a global company not a conglomerate hodgepodge We regard
acquisitions and efforts at diversification as logical ways to supplement our business but
only in the context of a carefully considered corporate marketing policy
Flexibility and simplicity
The publics sense of the power and size of a corporation is often inaccurate for a
companys power is limited by a host of factors including legislation competition
regulatory bodies and publicity From a business point of view it is desirable for
a firm to achieve the size best suited to a specific industry or mode of
production To be competitive internationally and make significant investments in
research and technology a larger company has an advantage From a strictly
organizational point of view flexible simple structures work best and excessively
large units should be avoided whenever possible In both respects HUL has a natural
advantage Although it is a big company it is spread out over many countries and
each of HULs factories has its own management and responsibility
Packaging
Manufacturing comprises all unit operations necessary to transform perishable raw
materials into finished products with the aim to make them safe and convenient
for the consumers The manufacturing activities of the HUL
respect natural resources by efficient use of raw materials and energy
minimize waste generation and emissions
ensure environmentally safe disposal of all waste which cannot be recycled
Regular assessments of processing practices are carried out These assessments
include
evaluation of individual plant performance with regard to operations which
have an impact on the environment
definition of targets for improvement
review of plant compliance with local government regulations company
environmental standards as well as results achieved in comparison with
targets for improvement
full investigation of incidents which may affect the environment
Information on developments in environmental protection technology and practices is
disseminated as required to ensure that all plants are using the most effective
environmental practices for their type of processing This applies also for co
packers
Marketing and distribution
Marketing is based on the principle of satisfying consumer needs This is the
foundation also for the environmental marketing approach of HUL
Environmental product claims in advertising promotional material and on
packaging are in accordance with legal requirements based on solid scientific
evidence and used in a serious and reasonable manner
Our aim is to minimize wastage in communication publicity and promotional
material in particular through more precise targeting of marketing activities
Consumer promotions and merchandising material such as consumer offers in store
promotions display material leaflets printed matter etc take environmental aspects
into account
This means due consideration of environmental impact in selecting both materials
and printing methods
In distribution energy efficient and pollution controlled methods are encouraged
wherever possible
Legislation and Regulations
It is the policy of the HUL to strictly comply with all laws and regulations
relevant to our activities We participate in discussions on food legislation and
regulations between international organizations government representatives industry
the scientific world and consumer associations We also apply this policy to
environment related matters
In doing so we cooperate with legislators through local industry associations in
order to promote laws and regulations in the field of environment which are
reasonable rational realistic applicable and enforceable We oppose unjustified bans
and any other discriminatory measures
35 BUSINESS CATEGORIES
HULrsquos purpose is to meet the everyday needs of people everywhere This vision has made HUL Indiarsquos largest Packaged Mass Consumption Goods Company with leadership in Home and Personal Care Products and Foods and BeveragesIt is the countryrsquos largest marketer of Soaps Detergents and Household Care productsIts expertise in Personal Products makes it the leader in Shampoos Skin Care Products Color Cosmetics Deodorants and Fragrances
In Foods and Beverages HUL remains the undisputed market leader in Tea Processed Coffee Branded Wheat Flour Tomato Products Ice Cream Jams and squashes
In New Ventures the new entrants are in Healthcare Confectioners and Network Marketing
HUL is also one of the countryrsquos biggest exporters and has earned the distinction of a Super Star Trading House Its Exports Division is a net foreign exchange earner Among the Exports are branded Soaps and Detergents Personal Products Tea amp Coffee Basmati Rice Castor Oil and its Derivatives
36 THE BRANDS
The formulation of branding strategies starts from the building a sustainable brand for the
company This is so as the consumers buy the brand not only for the intrinsic values
associated with it but also because of the promise that branding makes to the
consumerhellipthe promise of delivering values beyond expectation A framework is
suggested below for the formulation of a brand strategy-
1 Experiential marketing
The first component of branding strategy is the experiential marketing It is a well known
fact that the customers demand experiences instead of products or services This creates a
challenge to the organizations to find new ways to involve the customers in the value
chain so that they themselves can decide the product features and uniqueness that they
expect from the brand They want to know more about the details of the brand They
remove the shells and get into the core of the processes to understand the real value of the
brand Hence such a strategy should be framed that makes the consumers involvement
higher
2 Effective Branding
It is found that effective branding involves working on four important dimensions
namely
bull The Functional Dimension- The functional dimension concerns the perception of
benefit of the product or service associated with the brand
bull The Social Dimension- The Social Dimension concern the ability to create
identification with the group
bull The Spiritual Dimension- The Spiritual Dimension is the perception of global or
local responsibility
bull The Mental Dimension- The Mental Dimension is the ability to support the
individual mentally
3 Novel Brand Strategies
bull Customers Own the Brand- It should always be kept in mind that it is the consumers
who own the brand
bull Product Service- A sale should never be considered the ending of a transaction but the
beginning of a beautiful relationship Customer service basically creates a positive effect
on the minds of the customer and this positive influence on the mind of the consumer
makes them more open to new ideas and reduces their skeptic towards the brand
bull Buzz Marketing- The development in the technology used in the country has lead to
the increased importance paid to the concept of buzz marketing Branding increasingly
nowadays is moving into Internet-based applications
bull Religious Branding- since it is considered that religion has the power to bind people
and unify them under one common ideal an effective brand strategy must take into
account this powerful force which plays on the minds of the Indian consumers
4 Feedback and Improvements
It is very crucial to have the consumer participation In order to succeed in the long run it is crucial to allow the consumer participation at an intermediary stage of developing the product This will lead to creation of a better relationship between the company and its consumer
MARKETING STRATEGIES
Hindustan Unilever Limited has adopted a four pronged growth strategy -
1 Gunning the market with new products and brand extensions
2 Expansion of the distribution network to small towns for extensive
availability
3 Reduce prices and introduce smaller packages for products to
make them more affordable (a tool to enter price sensitive markets)
4 Focus on employ training and develop a positive attitude through
enhanced manpower development
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
The project further highlights on the Financial News Exports Mergers amp Acquisitions Achievements and the Latest Developments of HUL
Finally we move to our areas of major concern ndash the Hair Care products of HUL Sunsilk Shampoo has taken as the area for research and it is compared with Pantene Shampoo of Procter amp Gamble
HINDUSTAN UNILEVER LIMITEDMeeting Everyday Needs of People Everywhere
21 ABOUT THE COMPANY
Hindustan Unilever Limited (HUL) is Indiarsquos largest fast moving consumer goods company with leadership in Home amp Personal Care Products and Foods amp Beverages HULrsquos brands spread across 20 distinct consumer categories touch the lives of two out of three Indians They endow the company with a scale of combined volumes of about 4 million tones and sales of Rs10000 crores The leading business magazine Forbes Global has rated HUL as the best consumer household products company Leading national publications like The Economic Times Business World amp Business Today have also rated HUL as one of Indiarsquos most respected companies amp the number one in Market Value Added amp EVA
Hindustan Unilever Limited
Type Public company BSEHUL
Industry Fast Moving Consumer Goods (FMCG)
Founded 1933
Headquarters Mumbai India
Key peopleHarish Manwani (Chairman) Nitin Paranjpe (CEO and Managing Director)
Products Home amp Personal Care Foods Water Purifier
Revenue Rs 2086957 crore (US$ 453 billion) (2008-2009)
Employees Over 65000 direct amp indirect employees
Parent Unilever Plc
22 CORPORATE PURPOSE
The purpose of Hindustan Unilever Limited (HUL) is to meet the everyday needs of people of everywhere ndash to anticipate the aspirations of the consumers and to respond creatively and competitively with branded products and services which raise the quality of life The deep roots in local cultures and markets around the world are their unparalleled inheritance and the foundation for their future growth HUL would bring their wealth of knowledge and international expertise to the local customers ndash a truly multi ndash local multinational
The long-term success of HUL requires a total commitment to exceptional standards of performance and productivity to working together effectively and to a willingness to embrace new ideas and learn continuously
They believe that to succeed requires the highest standards of corporate behavior towards employees consumers and the societies and world in which we live
This is HULrsquos road to sustainable profitable growth for their business and long term value creation for their shareholders and employees
23 PEOPLE amp CULTURE
The story of Hindustan Unilever Limited has been chronicle of attracting holding and moulding the finest talent in India and abroad to shape an institution that stands today for the highest standards of quality innovation and service to the consumer and the country HULrsquos people have flourished in an environment marked by fairness the belief that even perfection can be improved upon and the assurance that all you need is merit in order to progress That has proved a
fertile soil indeed for it has bred people whose caliber has changed the quality of millions of Indian consumerrsquos lives
As HULrsquos Chairman Nitin Paranjpe says ldquo We are because of our values ndash truth action courage caring rdquo
24 NURTURING TALENT
Management development amp training in Hindustan Unilever Limited
A peoplersquos company
A company is nothing but the collective intellect of its people Business growth can only take place through people growth And the more a company harnesses the potential of its people the faster it will grow Equally the faster it grows the more opportunities it can create to excite and retain talent HUL has recognized this since their inception People development has always been central to HUL and its business strategy The stretch in brands reflects the stretch in peoplersquos minds The technological feats it has accomplished reflect its peoplersquos ingenuity in deriving innovations from science The value it has extracted from capital corresponds to the value its people have added to to business processes To achieve its full potential it should continue to empower its people to stretch their minds ingenuity and abilities
The Genesis
Unilever is a multilocal ndash multinational and believes that if a company has to grow its management must instinctively understand local consumer needs and aspirations
Thus the focus is on grooming managers from within the country
Nurturing top talent
To develop and retain top talent HUL have put in place a process that helps identify potential business leaders much earlier in their careers they are then placed on a fast track of personal growth
We are already creating substantially opportunities for entrepreneurial leadership for managers through far- reaching changes to the organization specially disaggregating into smaller independent business units to bring about a greater focus on growth The aim is to provide substantial business leadership opportunities for managers as and when they are ready as opposed to when they reach a certain level of seniority
OBJECTIVES OF HINDUSTAN UNILEVER LIMITED
HUL recognizes that its consumers have a sincere and legitimate interest in the
behaviour beliefs and actions of the Company behind brands in which they place
their trust and that without its consumers the Company would not exist
HUL believes that as a general rule legislation is the most effective safeguard of
responsible conduct although in certain areas additional guidance to staff in the
form of voluntary business principles is beneficial in order to ensure that the
highest standards are met throughout the organization
HUL is conscious of the fact that the success of a corporation is a reflection of the
professionalism conduct and the responsible attitude of its management and
employees Therefore recruitment of the right people and ongoing training and
development are crucial
HUL continues to maintain its commitment to follow and respect all applicable
local laws in each of its divisions
CHAPTER - 2
RESEARCH METHODOLOGY
21 Introduction
22 Research Design
23 Modes Of Data Collection and Sample Size
RESEARCH METHODOLOGY
The purpose of the project is to compare the hair care products of Hindustan Unilever Limited and Procter amp Gamble
The data was collected with the help of secondary sources
Secondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
21 INTRODUCTION
Research is a careful critical enquiry in seeking facts and diligent investigation in order to ascertain something For formulating a significant research problem the researcher should try to acquire as much knowledge of the area in which research is to be done as possible The researcher must be fully aware of the environment to which the difficulty pertains
It refers to the method adopted to collect the relevant data and other information which forms the basis of the research writing So for the effective writing of the thesis of the report the data must be quality oriented
22 RESEARCH DESIGN
Research Design is the structure of research It is the glue that holds all of the elements in a research project together This project enables summarization of a complex structure of HUL efficiently
This research design provides answers to following questions
a) What technique have been used to collect the data b) What kind of sampling have been used in this project c) How the data have been analyzed
RESEARCH DESIGN OF THE PROJECT
The research design adopted for this project is ldquo Descriptive Researchrdquo which provides an accurate snapshot of some aspect of market environment It helps in providing information about HUL and its products and services keeping in mind the changing market scenario Its features are
The objective of such a study is to answer the who what when where when and have of the subject under investigation
Descriptive studies are well ndash structured
This study tends to be rigid and its approach cannot be changed every now and then
23 MODES OF DATA COLLECTION amp SAMPLE SIZE
Data has been collected with the help of secondary sourcesSecondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
Magazines Newspapers Company Literature Websites
CHAPTER - 3
COMPANY PROFILE 31 Organisation Structure
32 Key People of HUL
33 Business Supports
34 Distribution Network
35 Business Categories
36 Brands
37 Financial Status of HUL
38 Problems Faced by HUL
31 ORGANIZATION STRUCTURE
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods (FMCG) Company It is present in Home amp Personal Care and Foods amp Beverages categories HUL and Group companies have about 41000 employees including 1550 managers
The fundamental principle determining the organization structure is to infuse speed and flexibility in decision making and implementation with empowered managers across the companyrsquos nationwide operations For this HUL is organized into self ndash sufficient profit centers supported by certain central functions and resources to leverage economies of scale wherever relevant
32 Key People Of HUL
The Board of Directors as repositories of the corporate powers act as a guardian to the Company as also the protectors of shareholderrsquos interest
This Apex body comprises of a Non- Executive Chairman four whole time Directors and five Independent Non ndash Executive Directors The Board of the Company represents the optimum mix of professionalism knowledge and experience
Mr Harish Manwani - CHAIRMAN
Mr Harish Manwani (55) assumed charge as NON ndash Executive Chairman of the company with effect from 1st july 2005
Mr Nitin Paranjpe - CEO and Managing Director
Mr Nitin Paranjpe (46) after obtaining degree in BE (Mechanical) and MBA in marketing joined the company as a management trainee in 1987
Mr RShridhar - Chief Financial Officer
Mr Shridhar Ramamurthy (45) is a Chartered Accountant (Gold Medalist) as well as Cost Accountant and Company Secretary in HUL
33 BUSINESS SUPPORTS
Hindustan Unilever Limited is regarded as one of Indiarsquos most admired companies
It is not only the brands and the people but it is also the support systems Its Research Center is the largest private sector industrial research laboratory of its kind in India HULrsquos enviable reach in the remote heartland makes its distribution web the largest of its kind in India
34 DISTRIBUTION NETWORK
Distribution systemrsquos focus to enable easy access to their brands touch consumers with a three ndash way convergence - of product availability brand communication and higher levels of brand experience
WHAT DITRIBUTION SYSTEM SHOULD DO
The most obvious function of providing the logistics support to get the companyrsquos product to the end customer Another established role is that of fina ncing The channel partners are expected to extend credit to the next level of customers Some channelmembers however also receive credit and the net credit extended is minimal
To meet the ever ndash changing needs of the consumer HUL has set up a distribution network that ensures availability of all its products in all outlets at all the times This includes maintaining favourable trade relations providing innovative incentives to retailers and organizing demand generation activities among a host of other things
Furthermore although the distribution system is common across most businesses each of the businesses has over the years fine ndash tuned the system to meet their objectives The differences therefore lie in the manner businesses use an existing distribution network and the channel players involved therein to improve their reach and service to their customers and end users For instance the distribution
model for detergents personal products and beverages are quite different from each other due to various factors
Similarly the success stories of urban markets cannot necessarily be replicated in rural markets
The evolution of HULrsquos distribution network
The evolution of HULrsquos distribution network The first place of the HUL distribution network had wholesalers placing bulk orders directly with the company Large retailers also placed direct orders which comprised almost 30 of the total orders collected
a) HULs products are distributed through a network of about 7000 redistribution stockists covering about one million retailoutlets
b) The general trade comprises grocery stores chemists wholesale kiosks and general stores
c) Hindustan Unilever provide tailor made services to each of its channel partners
d) HUL is using the point of purchase method for much higher level of direct contact through in ndash store facilitators sampling education and experience
The company salesman grouped all these orders and placed an indent with the Head Office Goods were sent to these markets with the company salesman as the consignee The salesman then collected and distributed the products to the respective wholesalers against cash payment and the money was remitted to the company
The focus of the second phase which spanned the decades of the 40s was to provide desired products and quality service to the companyrsquos customers In order to achieve this one wholesaler in each market was appointed as a ldquo Registered Wholesalerrdquo ( RW) a stock point for the companyrsquos products in that market The company salesman still covered the market canvassing for orders from the rest of the trade He would then distribute stocks from the RW through distribution units maintained by the company The RW system therefore increased the distribution reach of the company to a larger number of customers
The highlight of the third phase was the concept of ldquoRedistribution Stockistrdquo ( RS ) who replaced the RWs The RS was required to provide the distribution units to the company salesman The RS financed his stocks and provided warehousing facilities to store them The RS also undertook demand stimulation activities on behalf of the company The second characteristic of this period we realized that the RS would be able to provide customer service only if he was serviced well This knowledge led to the establishment of the ldquo Company Depotsrdquo system This system helped in transshipment bulk breaking and as a stock point to minimize stock ndash outs at the RS level
In the recent past a significant change has been the replacement of the Company Depot by a system of third party Carrying and Forwarding Agents ( CampFAs ) The CampFAs act as buffer stock ndash points to ensure that stock ndash outs did not take place The CampFA system has also resulted in cost savings in terms of direct transportation and reduced time lag in delivery The most important benefit has been improved customer service to the RS
DISTRIBUTION AT VILLAGES ( RURAL MARKETS )
The company has brought all markets with populations of below 50000 under one rural sales organization
The team comprises an exclusive sales force and exclusive redistribution stockists
The team focuses on building superior availability of products
In rural India the network directly covers about 50000 villages reaching 250 million consumers through 6000 sub - stockists
DISTRIBUTION AT THE SUPERMARKETS
HUL has set up a full ndash scale sales organization for this channel to serve modern retailing outlets
Product tests and in ndash store sampling is provided to consumers
HARNESSING INFORMATION TECHNOLOGY
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
The objective is to make the product available at the right place and right time in the most cost effective manner
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
For this stockists have been connected through an Internet-based network called RS Net for online interaction
RS Net is part of Project Leap HULs end ndash to - end supply chain
PIONEERING NEW CHANNELS
HUL is simultaneously creating new channels designed on the same principal of holistic contact with customers
1) Project Shakti HULs partnership with Self Help Groups of rural women Started in 2001 Project Shakti has already been extended to about 50000 villages in 12 states - Andhra Pradesh Karnataka Gujarat and others
2) HINDUSTAN UNILEVER NETWORK ( HUN) it is the companyrsquos arm in the Direct Selling channel It represents a range of customized offerings in Home amp Personal Care and Foods
3) Out - Of -Home this deals in providing vending machines for hot beverages like tea coffee
4) Health and Beauty Services Lakme saloons provide specialized beauty services and solutions under the recognized authority of Lakme brand The Ayush Therapy Centers provide easy access to authentic Ayurvedic treatment and products
BUSINESS PRINCIPLES
People first
Employees people and products are more important at Hindustan Unilever Limited
than systems Systems and methods while necessary and valuable in running a complex
organization should remain managerial and operational aids but should not become ends
in themselves It is a question of priorities A strong orientation toward human beings
employees and executives is a decisive if not the decisive component of long-term
success
Quality products
Our focus is on products The ultimate justification for a company is its ability to offer
products that are appealing because of their quality convenience variety and price --
products that can stand their ground even in the face of fierce competition
Long-term view
HULmakes clear distinction between strategy and tactics It gives priority to the long-
range view Long-term thinking defuses many of the conflicts and contentions among
groups this applies to employment conditions and relations with employees as well as to
the conflicts and opposing interests of the trade and the industry Of course our ability to
focus on long-term considerations is only possible if the company is successful in the
struggle for short-term survival This is why HUL strives to maintain a satisfactory level
of profits every year
Uniformity
A very important concern at HUL has to do with uniformity how consistent HULrsquos
principles policies rules of conduct and strategies should be and to what extent they
should differ depending on the country subsidiary region branch or group of products
In general HUL tries to limit the uniformity of its policy to a requisite minimum
Diversification
HUL does not want to become either a conglomerate or a portfolio manager
HUListoperate only those businesses about which it has some special knowledge and
expertise HUL is a global company not a conglomerate hodgepodge We regard
acquisitions and efforts at diversification as logical ways to supplement our business but
only in the context of a carefully considered corporate marketing policy
Flexibility and simplicity
The publics sense of the power and size of a corporation is often inaccurate for a
companys power is limited by a host of factors including legislation competition
regulatory bodies and publicity From a business point of view it is desirable for
a firm to achieve the size best suited to a specific industry or mode of
production To be competitive internationally and make significant investments in
research and technology a larger company has an advantage From a strictly
organizational point of view flexible simple structures work best and excessively
large units should be avoided whenever possible In both respects HUL has a natural
advantage Although it is a big company it is spread out over many countries and
each of HULs factories has its own management and responsibility
Packaging
Manufacturing comprises all unit operations necessary to transform perishable raw
materials into finished products with the aim to make them safe and convenient
for the consumers The manufacturing activities of the HUL
respect natural resources by efficient use of raw materials and energy
minimize waste generation and emissions
ensure environmentally safe disposal of all waste which cannot be recycled
Regular assessments of processing practices are carried out These assessments
include
evaluation of individual plant performance with regard to operations which
have an impact on the environment
definition of targets for improvement
review of plant compliance with local government regulations company
environmental standards as well as results achieved in comparison with
targets for improvement
full investigation of incidents which may affect the environment
Information on developments in environmental protection technology and practices is
disseminated as required to ensure that all plants are using the most effective
environmental practices for their type of processing This applies also for co
packers
Marketing and distribution
Marketing is based on the principle of satisfying consumer needs This is the
foundation also for the environmental marketing approach of HUL
Environmental product claims in advertising promotional material and on
packaging are in accordance with legal requirements based on solid scientific
evidence and used in a serious and reasonable manner
Our aim is to minimize wastage in communication publicity and promotional
material in particular through more precise targeting of marketing activities
Consumer promotions and merchandising material such as consumer offers in store
promotions display material leaflets printed matter etc take environmental aspects
into account
This means due consideration of environmental impact in selecting both materials
and printing methods
In distribution energy efficient and pollution controlled methods are encouraged
wherever possible
Legislation and Regulations
It is the policy of the HUL to strictly comply with all laws and regulations
relevant to our activities We participate in discussions on food legislation and
regulations between international organizations government representatives industry
the scientific world and consumer associations We also apply this policy to
environment related matters
In doing so we cooperate with legislators through local industry associations in
order to promote laws and regulations in the field of environment which are
reasonable rational realistic applicable and enforceable We oppose unjustified bans
and any other discriminatory measures
35 BUSINESS CATEGORIES
HULrsquos purpose is to meet the everyday needs of people everywhere This vision has made HUL Indiarsquos largest Packaged Mass Consumption Goods Company with leadership in Home and Personal Care Products and Foods and BeveragesIt is the countryrsquos largest marketer of Soaps Detergents and Household Care productsIts expertise in Personal Products makes it the leader in Shampoos Skin Care Products Color Cosmetics Deodorants and Fragrances
In Foods and Beverages HUL remains the undisputed market leader in Tea Processed Coffee Branded Wheat Flour Tomato Products Ice Cream Jams and squashes
In New Ventures the new entrants are in Healthcare Confectioners and Network Marketing
HUL is also one of the countryrsquos biggest exporters and has earned the distinction of a Super Star Trading House Its Exports Division is a net foreign exchange earner Among the Exports are branded Soaps and Detergents Personal Products Tea amp Coffee Basmati Rice Castor Oil and its Derivatives
36 THE BRANDS
The formulation of branding strategies starts from the building a sustainable brand for the
company This is so as the consumers buy the brand not only for the intrinsic values
associated with it but also because of the promise that branding makes to the
consumerhellipthe promise of delivering values beyond expectation A framework is
suggested below for the formulation of a brand strategy-
1 Experiential marketing
The first component of branding strategy is the experiential marketing It is a well known
fact that the customers demand experiences instead of products or services This creates a
challenge to the organizations to find new ways to involve the customers in the value
chain so that they themselves can decide the product features and uniqueness that they
expect from the brand They want to know more about the details of the brand They
remove the shells and get into the core of the processes to understand the real value of the
brand Hence such a strategy should be framed that makes the consumers involvement
higher
2 Effective Branding
It is found that effective branding involves working on four important dimensions
namely
bull The Functional Dimension- The functional dimension concerns the perception of
benefit of the product or service associated with the brand
bull The Social Dimension- The Social Dimension concern the ability to create
identification with the group
bull The Spiritual Dimension- The Spiritual Dimension is the perception of global or
local responsibility
bull The Mental Dimension- The Mental Dimension is the ability to support the
individual mentally
3 Novel Brand Strategies
bull Customers Own the Brand- It should always be kept in mind that it is the consumers
who own the brand
bull Product Service- A sale should never be considered the ending of a transaction but the
beginning of a beautiful relationship Customer service basically creates a positive effect
on the minds of the customer and this positive influence on the mind of the consumer
makes them more open to new ideas and reduces their skeptic towards the brand
bull Buzz Marketing- The development in the technology used in the country has lead to
the increased importance paid to the concept of buzz marketing Branding increasingly
nowadays is moving into Internet-based applications
bull Religious Branding- since it is considered that religion has the power to bind people
and unify them under one common ideal an effective brand strategy must take into
account this powerful force which plays on the minds of the Indian consumers
4 Feedback and Improvements
It is very crucial to have the consumer participation In order to succeed in the long run it is crucial to allow the consumer participation at an intermediary stage of developing the product This will lead to creation of a better relationship between the company and its consumer
MARKETING STRATEGIES
Hindustan Unilever Limited has adopted a four pronged growth strategy -
1 Gunning the market with new products and brand extensions
2 Expansion of the distribution network to small towns for extensive
availability
3 Reduce prices and introduce smaller packages for products to
make them more affordable (a tool to enter price sensitive markets)
4 Focus on employ training and develop a positive attitude through
enhanced manpower development
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
HINDUSTAN UNILEVER LIMITEDMeeting Everyday Needs of People Everywhere
21 ABOUT THE COMPANY
Hindustan Unilever Limited (HUL) is Indiarsquos largest fast moving consumer goods company with leadership in Home amp Personal Care Products and Foods amp Beverages HULrsquos brands spread across 20 distinct consumer categories touch the lives of two out of three Indians They endow the company with a scale of combined volumes of about 4 million tones and sales of Rs10000 crores The leading business magazine Forbes Global has rated HUL as the best consumer household products company Leading national publications like The Economic Times Business World amp Business Today have also rated HUL as one of Indiarsquos most respected companies amp the number one in Market Value Added amp EVA
Hindustan Unilever Limited
Type Public company BSEHUL
Industry Fast Moving Consumer Goods (FMCG)
Founded 1933
Headquarters Mumbai India
Key peopleHarish Manwani (Chairman) Nitin Paranjpe (CEO and Managing Director)
Products Home amp Personal Care Foods Water Purifier
Revenue Rs 2086957 crore (US$ 453 billion) (2008-2009)
Employees Over 65000 direct amp indirect employees
Parent Unilever Plc
22 CORPORATE PURPOSE
The purpose of Hindustan Unilever Limited (HUL) is to meet the everyday needs of people of everywhere ndash to anticipate the aspirations of the consumers and to respond creatively and competitively with branded products and services which raise the quality of life The deep roots in local cultures and markets around the world are their unparalleled inheritance and the foundation for their future growth HUL would bring their wealth of knowledge and international expertise to the local customers ndash a truly multi ndash local multinational
The long-term success of HUL requires a total commitment to exceptional standards of performance and productivity to working together effectively and to a willingness to embrace new ideas and learn continuously
They believe that to succeed requires the highest standards of corporate behavior towards employees consumers and the societies and world in which we live
This is HULrsquos road to sustainable profitable growth for their business and long term value creation for their shareholders and employees
23 PEOPLE amp CULTURE
The story of Hindustan Unilever Limited has been chronicle of attracting holding and moulding the finest talent in India and abroad to shape an institution that stands today for the highest standards of quality innovation and service to the consumer and the country HULrsquos people have flourished in an environment marked by fairness the belief that even perfection can be improved upon and the assurance that all you need is merit in order to progress That has proved a
fertile soil indeed for it has bred people whose caliber has changed the quality of millions of Indian consumerrsquos lives
As HULrsquos Chairman Nitin Paranjpe says ldquo We are because of our values ndash truth action courage caring rdquo
24 NURTURING TALENT
Management development amp training in Hindustan Unilever Limited
A peoplersquos company
A company is nothing but the collective intellect of its people Business growth can only take place through people growth And the more a company harnesses the potential of its people the faster it will grow Equally the faster it grows the more opportunities it can create to excite and retain talent HUL has recognized this since their inception People development has always been central to HUL and its business strategy The stretch in brands reflects the stretch in peoplersquos minds The technological feats it has accomplished reflect its peoplersquos ingenuity in deriving innovations from science The value it has extracted from capital corresponds to the value its people have added to to business processes To achieve its full potential it should continue to empower its people to stretch their minds ingenuity and abilities
The Genesis
Unilever is a multilocal ndash multinational and believes that if a company has to grow its management must instinctively understand local consumer needs and aspirations
Thus the focus is on grooming managers from within the country
Nurturing top talent
To develop and retain top talent HUL have put in place a process that helps identify potential business leaders much earlier in their careers they are then placed on a fast track of personal growth
We are already creating substantially opportunities for entrepreneurial leadership for managers through far- reaching changes to the organization specially disaggregating into smaller independent business units to bring about a greater focus on growth The aim is to provide substantial business leadership opportunities for managers as and when they are ready as opposed to when they reach a certain level of seniority
OBJECTIVES OF HINDUSTAN UNILEVER LIMITED
HUL recognizes that its consumers have a sincere and legitimate interest in the
behaviour beliefs and actions of the Company behind brands in which they place
their trust and that without its consumers the Company would not exist
HUL believes that as a general rule legislation is the most effective safeguard of
responsible conduct although in certain areas additional guidance to staff in the
form of voluntary business principles is beneficial in order to ensure that the
highest standards are met throughout the organization
HUL is conscious of the fact that the success of a corporation is a reflection of the
professionalism conduct and the responsible attitude of its management and
employees Therefore recruitment of the right people and ongoing training and
development are crucial
HUL continues to maintain its commitment to follow and respect all applicable
local laws in each of its divisions
CHAPTER - 2
RESEARCH METHODOLOGY
21 Introduction
22 Research Design
23 Modes Of Data Collection and Sample Size
RESEARCH METHODOLOGY
The purpose of the project is to compare the hair care products of Hindustan Unilever Limited and Procter amp Gamble
The data was collected with the help of secondary sources
Secondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
21 INTRODUCTION
Research is a careful critical enquiry in seeking facts and diligent investigation in order to ascertain something For formulating a significant research problem the researcher should try to acquire as much knowledge of the area in which research is to be done as possible The researcher must be fully aware of the environment to which the difficulty pertains
It refers to the method adopted to collect the relevant data and other information which forms the basis of the research writing So for the effective writing of the thesis of the report the data must be quality oriented
22 RESEARCH DESIGN
Research Design is the structure of research It is the glue that holds all of the elements in a research project together This project enables summarization of a complex structure of HUL efficiently
This research design provides answers to following questions
a) What technique have been used to collect the data b) What kind of sampling have been used in this project c) How the data have been analyzed
RESEARCH DESIGN OF THE PROJECT
The research design adopted for this project is ldquo Descriptive Researchrdquo which provides an accurate snapshot of some aspect of market environment It helps in providing information about HUL and its products and services keeping in mind the changing market scenario Its features are
The objective of such a study is to answer the who what when where when and have of the subject under investigation
Descriptive studies are well ndash structured
This study tends to be rigid and its approach cannot be changed every now and then
23 MODES OF DATA COLLECTION amp SAMPLE SIZE
Data has been collected with the help of secondary sourcesSecondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
Magazines Newspapers Company Literature Websites
CHAPTER - 3
COMPANY PROFILE 31 Organisation Structure
32 Key People of HUL
33 Business Supports
34 Distribution Network
35 Business Categories
36 Brands
37 Financial Status of HUL
38 Problems Faced by HUL
31 ORGANIZATION STRUCTURE
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods (FMCG) Company It is present in Home amp Personal Care and Foods amp Beverages categories HUL and Group companies have about 41000 employees including 1550 managers
The fundamental principle determining the organization structure is to infuse speed and flexibility in decision making and implementation with empowered managers across the companyrsquos nationwide operations For this HUL is organized into self ndash sufficient profit centers supported by certain central functions and resources to leverage economies of scale wherever relevant
32 Key People Of HUL
The Board of Directors as repositories of the corporate powers act as a guardian to the Company as also the protectors of shareholderrsquos interest
This Apex body comprises of a Non- Executive Chairman four whole time Directors and five Independent Non ndash Executive Directors The Board of the Company represents the optimum mix of professionalism knowledge and experience
Mr Harish Manwani - CHAIRMAN
Mr Harish Manwani (55) assumed charge as NON ndash Executive Chairman of the company with effect from 1st july 2005
Mr Nitin Paranjpe - CEO and Managing Director
Mr Nitin Paranjpe (46) after obtaining degree in BE (Mechanical) and MBA in marketing joined the company as a management trainee in 1987
Mr RShridhar - Chief Financial Officer
Mr Shridhar Ramamurthy (45) is a Chartered Accountant (Gold Medalist) as well as Cost Accountant and Company Secretary in HUL
33 BUSINESS SUPPORTS
Hindustan Unilever Limited is regarded as one of Indiarsquos most admired companies
It is not only the brands and the people but it is also the support systems Its Research Center is the largest private sector industrial research laboratory of its kind in India HULrsquos enviable reach in the remote heartland makes its distribution web the largest of its kind in India
34 DISTRIBUTION NETWORK
Distribution systemrsquos focus to enable easy access to their brands touch consumers with a three ndash way convergence - of product availability brand communication and higher levels of brand experience
WHAT DITRIBUTION SYSTEM SHOULD DO
The most obvious function of providing the logistics support to get the companyrsquos product to the end customer Another established role is that of fina ncing The channel partners are expected to extend credit to the next level of customers Some channelmembers however also receive credit and the net credit extended is minimal
To meet the ever ndash changing needs of the consumer HUL has set up a distribution network that ensures availability of all its products in all outlets at all the times This includes maintaining favourable trade relations providing innovative incentives to retailers and organizing demand generation activities among a host of other things
Furthermore although the distribution system is common across most businesses each of the businesses has over the years fine ndash tuned the system to meet their objectives The differences therefore lie in the manner businesses use an existing distribution network and the channel players involved therein to improve their reach and service to their customers and end users For instance the distribution
model for detergents personal products and beverages are quite different from each other due to various factors
Similarly the success stories of urban markets cannot necessarily be replicated in rural markets
The evolution of HULrsquos distribution network
The evolution of HULrsquos distribution network The first place of the HUL distribution network had wholesalers placing bulk orders directly with the company Large retailers also placed direct orders which comprised almost 30 of the total orders collected
a) HULs products are distributed through a network of about 7000 redistribution stockists covering about one million retailoutlets
b) The general trade comprises grocery stores chemists wholesale kiosks and general stores
c) Hindustan Unilever provide tailor made services to each of its channel partners
d) HUL is using the point of purchase method for much higher level of direct contact through in ndash store facilitators sampling education and experience
The company salesman grouped all these orders and placed an indent with the Head Office Goods were sent to these markets with the company salesman as the consignee The salesman then collected and distributed the products to the respective wholesalers against cash payment and the money was remitted to the company
The focus of the second phase which spanned the decades of the 40s was to provide desired products and quality service to the companyrsquos customers In order to achieve this one wholesaler in each market was appointed as a ldquo Registered Wholesalerrdquo ( RW) a stock point for the companyrsquos products in that market The company salesman still covered the market canvassing for orders from the rest of the trade He would then distribute stocks from the RW through distribution units maintained by the company The RW system therefore increased the distribution reach of the company to a larger number of customers
The highlight of the third phase was the concept of ldquoRedistribution Stockistrdquo ( RS ) who replaced the RWs The RS was required to provide the distribution units to the company salesman The RS financed his stocks and provided warehousing facilities to store them The RS also undertook demand stimulation activities on behalf of the company The second characteristic of this period we realized that the RS would be able to provide customer service only if he was serviced well This knowledge led to the establishment of the ldquo Company Depotsrdquo system This system helped in transshipment bulk breaking and as a stock point to minimize stock ndash outs at the RS level
In the recent past a significant change has been the replacement of the Company Depot by a system of third party Carrying and Forwarding Agents ( CampFAs ) The CampFAs act as buffer stock ndash points to ensure that stock ndash outs did not take place The CampFA system has also resulted in cost savings in terms of direct transportation and reduced time lag in delivery The most important benefit has been improved customer service to the RS
DISTRIBUTION AT VILLAGES ( RURAL MARKETS )
The company has brought all markets with populations of below 50000 under one rural sales organization
The team comprises an exclusive sales force and exclusive redistribution stockists
The team focuses on building superior availability of products
In rural India the network directly covers about 50000 villages reaching 250 million consumers through 6000 sub - stockists
DISTRIBUTION AT THE SUPERMARKETS
HUL has set up a full ndash scale sales organization for this channel to serve modern retailing outlets
Product tests and in ndash store sampling is provided to consumers
HARNESSING INFORMATION TECHNOLOGY
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
The objective is to make the product available at the right place and right time in the most cost effective manner
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
For this stockists have been connected through an Internet-based network called RS Net for online interaction
RS Net is part of Project Leap HULs end ndash to - end supply chain
PIONEERING NEW CHANNELS
HUL is simultaneously creating new channels designed on the same principal of holistic contact with customers
1) Project Shakti HULs partnership with Self Help Groups of rural women Started in 2001 Project Shakti has already been extended to about 50000 villages in 12 states - Andhra Pradesh Karnataka Gujarat and others
2) HINDUSTAN UNILEVER NETWORK ( HUN) it is the companyrsquos arm in the Direct Selling channel It represents a range of customized offerings in Home amp Personal Care and Foods
3) Out - Of -Home this deals in providing vending machines for hot beverages like tea coffee
4) Health and Beauty Services Lakme saloons provide specialized beauty services and solutions under the recognized authority of Lakme brand The Ayush Therapy Centers provide easy access to authentic Ayurvedic treatment and products
BUSINESS PRINCIPLES
People first
Employees people and products are more important at Hindustan Unilever Limited
than systems Systems and methods while necessary and valuable in running a complex
organization should remain managerial and operational aids but should not become ends
in themselves It is a question of priorities A strong orientation toward human beings
employees and executives is a decisive if not the decisive component of long-term
success
Quality products
Our focus is on products The ultimate justification for a company is its ability to offer
products that are appealing because of their quality convenience variety and price --
products that can stand their ground even in the face of fierce competition
Long-term view
HULmakes clear distinction between strategy and tactics It gives priority to the long-
range view Long-term thinking defuses many of the conflicts and contentions among
groups this applies to employment conditions and relations with employees as well as to
the conflicts and opposing interests of the trade and the industry Of course our ability to
focus on long-term considerations is only possible if the company is successful in the
struggle for short-term survival This is why HUL strives to maintain a satisfactory level
of profits every year
Uniformity
A very important concern at HUL has to do with uniformity how consistent HULrsquos
principles policies rules of conduct and strategies should be and to what extent they
should differ depending on the country subsidiary region branch or group of products
In general HUL tries to limit the uniformity of its policy to a requisite minimum
Diversification
HUL does not want to become either a conglomerate or a portfolio manager
HUListoperate only those businesses about which it has some special knowledge and
expertise HUL is a global company not a conglomerate hodgepodge We regard
acquisitions and efforts at diversification as logical ways to supplement our business but
only in the context of a carefully considered corporate marketing policy
Flexibility and simplicity
The publics sense of the power and size of a corporation is often inaccurate for a
companys power is limited by a host of factors including legislation competition
regulatory bodies and publicity From a business point of view it is desirable for
a firm to achieve the size best suited to a specific industry or mode of
production To be competitive internationally and make significant investments in
research and technology a larger company has an advantage From a strictly
organizational point of view flexible simple structures work best and excessively
large units should be avoided whenever possible In both respects HUL has a natural
advantage Although it is a big company it is spread out over many countries and
each of HULs factories has its own management and responsibility
Packaging
Manufacturing comprises all unit operations necessary to transform perishable raw
materials into finished products with the aim to make them safe and convenient
for the consumers The manufacturing activities of the HUL
respect natural resources by efficient use of raw materials and energy
minimize waste generation and emissions
ensure environmentally safe disposal of all waste which cannot be recycled
Regular assessments of processing practices are carried out These assessments
include
evaluation of individual plant performance with regard to operations which
have an impact on the environment
definition of targets for improvement
review of plant compliance with local government regulations company
environmental standards as well as results achieved in comparison with
targets for improvement
full investigation of incidents which may affect the environment
Information on developments in environmental protection technology and practices is
disseminated as required to ensure that all plants are using the most effective
environmental practices for their type of processing This applies also for co
packers
Marketing and distribution
Marketing is based on the principle of satisfying consumer needs This is the
foundation also for the environmental marketing approach of HUL
Environmental product claims in advertising promotional material and on
packaging are in accordance with legal requirements based on solid scientific
evidence and used in a serious and reasonable manner
Our aim is to minimize wastage in communication publicity and promotional
material in particular through more precise targeting of marketing activities
Consumer promotions and merchandising material such as consumer offers in store
promotions display material leaflets printed matter etc take environmental aspects
into account
This means due consideration of environmental impact in selecting both materials
and printing methods
In distribution energy efficient and pollution controlled methods are encouraged
wherever possible
Legislation and Regulations
It is the policy of the HUL to strictly comply with all laws and regulations
relevant to our activities We participate in discussions on food legislation and
regulations between international organizations government representatives industry
the scientific world and consumer associations We also apply this policy to
environment related matters
In doing so we cooperate with legislators through local industry associations in
order to promote laws and regulations in the field of environment which are
reasonable rational realistic applicable and enforceable We oppose unjustified bans
and any other discriminatory measures
35 BUSINESS CATEGORIES
HULrsquos purpose is to meet the everyday needs of people everywhere This vision has made HUL Indiarsquos largest Packaged Mass Consumption Goods Company with leadership in Home and Personal Care Products and Foods and BeveragesIt is the countryrsquos largest marketer of Soaps Detergents and Household Care productsIts expertise in Personal Products makes it the leader in Shampoos Skin Care Products Color Cosmetics Deodorants and Fragrances
In Foods and Beverages HUL remains the undisputed market leader in Tea Processed Coffee Branded Wheat Flour Tomato Products Ice Cream Jams and squashes
In New Ventures the new entrants are in Healthcare Confectioners and Network Marketing
HUL is also one of the countryrsquos biggest exporters and has earned the distinction of a Super Star Trading House Its Exports Division is a net foreign exchange earner Among the Exports are branded Soaps and Detergents Personal Products Tea amp Coffee Basmati Rice Castor Oil and its Derivatives
36 THE BRANDS
The formulation of branding strategies starts from the building a sustainable brand for the
company This is so as the consumers buy the brand not only for the intrinsic values
associated with it but also because of the promise that branding makes to the
consumerhellipthe promise of delivering values beyond expectation A framework is
suggested below for the formulation of a brand strategy-
1 Experiential marketing
The first component of branding strategy is the experiential marketing It is a well known
fact that the customers demand experiences instead of products or services This creates a
challenge to the organizations to find new ways to involve the customers in the value
chain so that they themselves can decide the product features and uniqueness that they
expect from the brand They want to know more about the details of the brand They
remove the shells and get into the core of the processes to understand the real value of the
brand Hence such a strategy should be framed that makes the consumers involvement
higher
2 Effective Branding
It is found that effective branding involves working on four important dimensions
namely
bull The Functional Dimension- The functional dimension concerns the perception of
benefit of the product or service associated with the brand
bull The Social Dimension- The Social Dimension concern the ability to create
identification with the group
bull The Spiritual Dimension- The Spiritual Dimension is the perception of global or
local responsibility
bull The Mental Dimension- The Mental Dimension is the ability to support the
individual mentally
3 Novel Brand Strategies
bull Customers Own the Brand- It should always be kept in mind that it is the consumers
who own the brand
bull Product Service- A sale should never be considered the ending of a transaction but the
beginning of a beautiful relationship Customer service basically creates a positive effect
on the minds of the customer and this positive influence on the mind of the consumer
makes them more open to new ideas and reduces their skeptic towards the brand
bull Buzz Marketing- The development in the technology used in the country has lead to
the increased importance paid to the concept of buzz marketing Branding increasingly
nowadays is moving into Internet-based applications
bull Religious Branding- since it is considered that religion has the power to bind people
and unify them under one common ideal an effective brand strategy must take into
account this powerful force which plays on the minds of the Indian consumers
4 Feedback and Improvements
It is very crucial to have the consumer participation In order to succeed in the long run it is crucial to allow the consumer participation at an intermediary stage of developing the product This will lead to creation of a better relationship between the company and its consumer
MARKETING STRATEGIES
Hindustan Unilever Limited has adopted a four pronged growth strategy -
1 Gunning the market with new products and brand extensions
2 Expansion of the distribution network to small towns for extensive
availability
3 Reduce prices and introduce smaller packages for products to
make them more affordable (a tool to enter price sensitive markets)
4 Focus on employ training and develop a positive attitude through
enhanced manpower development
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
Employees Over 65000 direct amp indirect employees
Parent Unilever Plc
22 CORPORATE PURPOSE
The purpose of Hindustan Unilever Limited (HUL) is to meet the everyday needs of people of everywhere ndash to anticipate the aspirations of the consumers and to respond creatively and competitively with branded products and services which raise the quality of life The deep roots in local cultures and markets around the world are their unparalleled inheritance and the foundation for their future growth HUL would bring their wealth of knowledge and international expertise to the local customers ndash a truly multi ndash local multinational
The long-term success of HUL requires a total commitment to exceptional standards of performance and productivity to working together effectively and to a willingness to embrace new ideas and learn continuously
They believe that to succeed requires the highest standards of corporate behavior towards employees consumers and the societies and world in which we live
This is HULrsquos road to sustainable profitable growth for their business and long term value creation for their shareholders and employees
23 PEOPLE amp CULTURE
The story of Hindustan Unilever Limited has been chronicle of attracting holding and moulding the finest talent in India and abroad to shape an institution that stands today for the highest standards of quality innovation and service to the consumer and the country HULrsquos people have flourished in an environment marked by fairness the belief that even perfection can be improved upon and the assurance that all you need is merit in order to progress That has proved a
fertile soil indeed for it has bred people whose caliber has changed the quality of millions of Indian consumerrsquos lives
As HULrsquos Chairman Nitin Paranjpe says ldquo We are because of our values ndash truth action courage caring rdquo
24 NURTURING TALENT
Management development amp training in Hindustan Unilever Limited
A peoplersquos company
A company is nothing but the collective intellect of its people Business growth can only take place through people growth And the more a company harnesses the potential of its people the faster it will grow Equally the faster it grows the more opportunities it can create to excite and retain talent HUL has recognized this since their inception People development has always been central to HUL and its business strategy The stretch in brands reflects the stretch in peoplersquos minds The technological feats it has accomplished reflect its peoplersquos ingenuity in deriving innovations from science The value it has extracted from capital corresponds to the value its people have added to to business processes To achieve its full potential it should continue to empower its people to stretch their minds ingenuity and abilities
The Genesis
Unilever is a multilocal ndash multinational and believes that if a company has to grow its management must instinctively understand local consumer needs and aspirations
Thus the focus is on grooming managers from within the country
Nurturing top talent
To develop and retain top talent HUL have put in place a process that helps identify potential business leaders much earlier in their careers they are then placed on a fast track of personal growth
We are already creating substantially opportunities for entrepreneurial leadership for managers through far- reaching changes to the organization specially disaggregating into smaller independent business units to bring about a greater focus on growth The aim is to provide substantial business leadership opportunities for managers as and when they are ready as opposed to when they reach a certain level of seniority
OBJECTIVES OF HINDUSTAN UNILEVER LIMITED
HUL recognizes that its consumers have a sincere and legitimate interest in the
behaviour beliefs and actions of the Company behind brands in which they place
their trust and that without its consumers the Company would not exist
HUL believes that as a general rule legislation is the most effective safeguard of
responsible conduct although in certain areas additional guidance to staff in the
form of voluntary business principles is beneficial in order to ensure that the
highest standards are met throughout the organization
HUL is conscious of the fact that the success of a corporation is a reflection of the
professionalism conduct and the responsible attitude of its management and
employees Therefore recruitment of the right people and ongoing training and
development are crucial
HUL continues to maintain its commitment to follow and respect all applicable
local laws in each of its divisions
CHAPTER - 2
RESEARCH METHODOLOGY
21 Introduction
22 Research Design
23 Modes Of Data Collection and Sample Size
RESEARCH METHODOLOGY
The purpose of the project is to compare the hair care products of Hindustan Unilever Limited and Procter amp Gamble
The data was collected with the help of secondary sources
Secondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
21 INTRODUCTION
Research is a careful critical enquiry in seeking facts and diligent investigation in order to ascertain something For formulating a significant research problem the researcher should try to acquire as much knowledge of the area in which research is to be done as possible The researcher must be fully aware of the environment to which the difficulty pertains
It refers to the method adopted to collect the relevant data and other information which forms the basis of the research writing So for the effective writing of the thesis of the report the data must be quality oriented
22 RESEARCH DESIGN
Research Design is the structure of research It is the glue that holds all of the elements in a research project together This project enables summarization of a complex structure of HUL efficiently
This research design provides answers to following questions
a) What technique have been used to collect the data b) What kind of sampling have been used in this project c) How the data have been analyzed
RESEARCH DESIGN OF THE PROJECT
The research design adopted for this project is ldquo Descriptive Researchrdquo which provides an accurate snapshot of some aspect of market environment It helps in providing information about HUL and its products and services keeping in mind the changing market scenario Its features are
The objective of such a study is to answer the who what when where when and have of the subject under investigation
Descriptive studies are well ndash structured
This study tends to be rigid and its approach cannot be changed every now and then
23 MODES OF DATA COLLECTION amp SAMPLE SIZE
Data has been collected with the help of secondary sourcesSecondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
Magazines Newspapers Company Literature Websites
CHAPTER - 3
COMPANY PROFILE 31 Organisation Structure
32 Key People of HUL
33 Business Supports
34 Distribution Network
35 Business Categories
36 Brands
37 Financial Status of HUL
38 Problems Faced by HUL
31 ORGANIZATION STRUCTURE
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods (FMCG) Company It is present in Home amp Personal Care and Foods amp Beverages categories HUL and Group companies have about 41000 employees including 1550 managers
The fundamental principle determining the organization structure is to infuse speed and flexibility in decision making and implementation with empowered managers across the companyrsquos nationwide operations For this HUL is organized into self ndash sufficient profit centers supported by certain central functions and resources to leverage economies of scale wherever relevant
32 Key People Of HUL
The Board of Directors as repositories of the corporate powers act as a guardian to the Company as also the protectors of shareholderrsquos interest
This Apex body comprises of a Non- Executive Chairman four whole time Directors and five Independent Non ndash Executive Directors The Board of the Company represents the optimum mix of professionalism knowledge and experience
Mr Harish Manwani - CHAIRMAN
Mr Harish Manwani (55) assumed charge as NON ndash Executive Chairman of the company with effect from 1st july 2005
Mr Nitin Paranjpe - CEO and Managing Director
Mr Nitin Paranjpe (46) after obtaining degree in BE (Mechanical) and MBA in marketing joined the company as a management trainee in 1987
Mr RShridhar - Chief Financial Officer
Mr Shridhar Ramamurthy (45) is a Chartered Accountant (Gold Medalist) as well as Cost Accountant and Company Secretary in HUL
33 BUSINESS SUPPORTS
Hindustan Unilever Limited is regarded as one of Indiarsquos most admired companies
It is not only the brands and the people but it is also the support systems Its Research Center is the largest private sector industrial research laboratory of its kind in India HULrsquos enviable reach in the remote heartland makes its distribution web the largest of its kind in India
34 DISTRIBUTION NETWORK
Distribution systemrsquos focus to enable easy access to their brands touch consumers with a three ndash way convergence - of product availability brand communication and higher levels of brand experience
WHAT DITRIBUTION SYSTEM SHOULD DO
The most obvious function of providing the logistics support to get the companyrsquos product to the end customer Another established role is that of fina ncing The channel partners are expected to extend credit to the next level of customers Some channelmembers however also receive credit and the net credit extended is minimal
To meet the ever ndash changing needs of the consumer HUL has set up a distribution network that ensures availability of all its products in all outlets at all the times This includes maintaining favourable trade relations providing innovative incentives to retailers and organizing demand generation activities among a host of other things
Furthermore although the distribution system is common across most businesses each of the businesses has over the years fine ndash tuned the system to meet their objectives The differences therefore lie in the manner businesses use an existing distribution network and the channel players involved therein to improve their reach and service to their customers and end users For instance the distribution
model for detergents personal products and beverages are quite different from each other due to various factors
Similarly the success stories of urban markets cannot necessarily be replicated in rural markets
The evolution of HULrsquos distribution network
The evolution of HULrsquos distribution network The first place of the HUL distribution network had wholesalers placing bulk orders directly with the company Large retailers also placed direct orders which comprised almost 30 of the total orders collected
a) HULs products are distributed through a network of about 7000 redistribution stockists covering about one million retailoutlets
b) The general trade comprises grocery stores chemists wholesale kiosks and general stores
c) Hindustan Unilever provide tailor made services to each of its channel partners
d) HUL is using the point of purchase method for much higher level of direct contact through in ndash store facilitators sampling education and experience
The company salesman grouped all these orders and placed an indent with the Head Office Goods were sent to these markets with the company salesman as the consignee The salesman then collected and distributed the products to the respective wholesalers against cash payment and the money was remitted to the company
The focus of the second phase which spanned the decades of the 40s was to provide desired products and quality service to the companyrsquos customers In order to achieve this one wholesaler in each market was appointed as a ldquo Registered Wholesalerrdquo ( RW) a stock point for the companyrsquos products in that market The company salesman still covered the market canvassing for orders from the rest of the trade He would then distribute stocks from the RW through distribution units maintained by the company The RW system therefore increased the distribution reach of the company to a larger number of customers
The highlight of the third phase was the concept of ldquoRedistribution Stockistrdquo ( RS ) who replaced the RWs The RS was required to provide the distribution units to the company salesman The RS financed his stocks and provided warehousing facilities to store them The RS also undertook demand stimulation activities on behalf of the company The second characteristic of this period we realized that the RS would be able to provide customer service only if he was serviced well This knowledge led to the establishment of the ldquo Company Depotsrdquo system This system helped in transshipment bulk breaking and as a stock point to minimize stock ndash outs at the RS level
In the recent past a significant change has been the replacement of the Company Depot by a system of third party Carrying and Forwarding Agents ( CampFAs ) The CampFAs act as buffer stock ndash points to ensure that stock ndash outs did not take place The CampFA system has also resulted in cost savings in terms of direct transportation and reduced time lag in delivery The most important benefit has been improved customer service to the RS
DISTRIBUTION AT VILLAGES ( RURAL MARKETS )
The company has brought all markets with populations of below 50000 under one rural sales organization
The team comprises an exclusive sales force and exclusive redistribution stockists
The team focuses on building superior availability of products
In rural India the network directly covers about 50000 villages reaching 250 million consumers through 6000 sub - stockists
DISTRIBUTION AT THE SUPERMARKETS
HUL has set up a full ndash scale sales organization for this channel to serve modern retailing outlets
Product tests and in ndash store sampling is provided to consumers
HARNESSING INFORMATION TECHNOLOGY
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
The objective is to make the product available at the right place and right time in the most cost effective manner
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
For this stockists have been connected through an Internet-based network called RS Net for online interaction
RS Net is part of Project Leap HULs end ndash to - end supply chain
PIONEERING NEW CHANNELS
HUL is simultaneously creating new channels designed on the same principal of holistic contact with customers
1) Project Shakti HULs partnership with Self Help Groups of rural women Started in 2001 Project Shakti has already been extended to about 50000 villages in 12 states - Andhra Pradesh Karnataka Gujarat and others
2) HINDUSTAN UNILEVER NETWORK ( HUN) it is the companyrsquos arm in the Direct Selling channel It represents a range of customized offerings in Home amp Personal Care and Foods
3) Out - Of -Home this deals in providing vending machines for hot beverages like tea coffee
4) Health and Beauty Services Lakme saloons provide specialized beauty services and solutions under the recognized authority of Lakme brand The Ayush Therapy Centers provide easy access to authentic Ayurvedic treatment and products
BUSINESS PRINCIPLES
People first
Employees people and products are more important at Hindustan Unilever Limited
than systems Systems and methods while necessary and valuable in running a complex
organization should remain managerial and operational aids but should not become ends
in themselves It is a question of priorities A strong orientation toward human beings
employees and executives is a decisive if not the decisive component of long-term
success
Quality products
Our focus is on products The ultimate justification for a company is its ability to offer
products that are appealing because of their quality convenience variety and price --
products that can stand their ground even in the face of fierce competition
Long-term view
HULmakes clear distinction between strategy and tactics It gives priority to the long-
range view Long-term thinking defuses many of the conflicts and contentions among
groups this applies to employment conditions and relations with employees as well as to
the conflicts and opposing interests of the trade and the industry Of course our ability to
focus on long-term considerations is only possible if the company is successful in the
struggle for short-term survival This is why HUL strives to maintain a satisfactory level
of profits every year
Uniformity
A very important concern at HUL has to do with uniformity how consistent HULrsquos
principles policies rules of conduct and strategies should be and to what extent they
should differ depending on the country subsidiary region branch or group of products
In general HUL tries to limit the uniformity of its policy to a requisite minimum
Diversification
HUL does not want to become either a conglomerate or a portfolio manager
HUListoperate only those businesses about which it has some special knowledge and
expertise HUL is a global company not a conglomerate hodgepodge We regard
acquisitions and efforts at diversification as logical ways to supplement our business but
only in the context of a carefully considered corporate marketing policy
Flexibility and simplicity
The publics sense of the power and size of a corporation is often inaccurate for a
companys power is limited by a host of factors including legislation competition
regulatory bodies and publicity From a business point of view it is desirable for
a firm to achieve the size best suited to a specific industry or mode of
production To be competitive internationally and make significant investments in
research and technology a larger company has an advantage From a strictly
organizational point of view flexible simple structures work best and excessively
large units should be avoided whenever possible In both respects HUL has a natural
advantage Although it is a big company it is spread out over many countries and
each of HULs factories has its own management and responsibility
Packaging
Manufacturing comprises all unit operations necessary to transform perishable raw
materials into finished products with the aim to make them safe and convenient
for the consumers The manufacturing activities of the HUL
respect natural resources by efficient use of raw materials and energy
minimize waste generation and emissions
ensure environmentally safe disposal of all waste which cannot be recycled
Regular assessments of processing practices are carried out These assessments
include
evaluation of individual plant performance with regard to operations which
have an impact on the environment
definition of targets for improvement
review of plant compliance with local government regulations company
environmental standards as well as results achieved in comparison with
targets for improvement
full investigation of incidents which may affect the environment
Information on developments in environmental protection technology and practices is
disseminated as required to ensure that all plants are using the most effective
environmental practices for their type of processing This applies also for co
packers
Marketing and distribution
Marketing is based on the principle of satisfying consumer needs This is the
foundation also for the environmental marketing approach of HUL
Environmental product claims in advertising promotional material and on
packaging are in accordance with legal requirements based on solid scientific
evidence and used in a serious and reasonable manner
Our aim is to minimize wastage in communication publicity and promotional
material in particular through more precise targeting of marketing activities
Consumer promotions and merchandising material such as consumer offers in store
promotions display material leaflets printed matter etc take environmental aspects
into account
This means due consideration of environmental impact in selecting both materials
and printing methods
In distribution energy efficient and pollution controlled methods are encouraged
wherever possible
Legislation and Regulations
It is the policy of the HUL to strictly comply with all laws and regulations
relevant to our activities We participate in discussions on food legislation and
regulations between international organizations government representatives industry
the scientific world and consumer associations We also apply this policy to
environment related matters
In doing so we cooperate with legislators through local industry associations in
order to promote laws and regulations in the field of environment which are
reasonable rational realistic applicable and enforceable We oppose unjustified bans
and any other discriminatory measures
35 BUSINESS CATEGORIES
HULrsquos purpose is to meet the everyday needs of people everywhere This vision has made HUL Indiarsquos largest Packaged Mass Consumption Goods Company with leadership in Home and Personal Care Products and Foods and BeveragesIt is the countryrsquos largest marketer of Soaps Detergents and Household Care productsIts expertise in Personal Products makes it the leader in Shampoos Skin Care Products Color Cosmetics Deodorants and Fragrances
In Foods and Beverages HUL remains the undisputed market leader in Tea Processed Coffee Branded Wheat Flour Tomato Products Ice Cream Jams and squashes
In New Ventures the new entrants are in Healthcare Confectioners and Network Marketing
HUL is also one of the countryrsquos biggest exporters and has earned the distinction of a Super Star Trading House Its Exports Division is a net foreign exchange earner Among the Exports are branded Soaps and Detergents Personal Products Tea amp Coffee Basmati Rice Castor Oil and its Derivatives
36 THE BRANDS
The formulation of branding strategies starts from the building a sustainable brand for the
company This is so as the consumers buy the brand not only for the intrinsic values
associated with it but also because of the promise that branding makes to the
consumerhellipthe promise of delivering values beyond expectation A framework is
suggested below for the formulation of a brand strategy-
1 Experiential marketing
The first component of branding strategy is the experiential marketing It is a well known
fact that the customers demand experiences instead of products or services This creates a
challenge to the organizations to find new ways to involve the customers in the value
chain so that they themselves can decide the product features and uniqueness that they
expect from the brand They want to know more about the details of the brand They
remove the shells and get into the core of the processes to understand the real value of the
brand Hence such a strategy should be framed that makes the consumers involvement
higher
2 Effective Branding
It is found that effective branding involves working on four important dimensions
namely
bull The Functional Dimension- The functional dimension concerns the perception of
benefit of the product or service associated with the brand
bull The Social Dimension- The Social Dimension concern the ability to create
identification with the group
bull The Spiritual Dimension- The Spiritual Dimension is the perception of global or
local responsibility
bull The Mental Dimension- The Mental Dimension is the ability to support the
individual mentally
3 Novel Brand Strategies
bull Customers Own the Brand- It should always be kept in mind that it is the consumers
who own the brand
bull Product Service- A sale should never be considered the ending of a transaction but the
beginning of a beautiful relationship Customer service basically creates a positive effect
on the minds of the customer and this positive influence on the mind of the consumer
makes them more open to new ideas and reduces their skeptic towards the brand
bull Buzz Marketing- The development in the technology used in the country has lead to
the increased importance paid to the concept of buzz marketing Branding increasingly
nowadays is moving into Internet-based applications
bull Religious Branding- since it is considered that religion has the power to bind people
and unify them under one common ideal an effective brand strategy must take into
account this powerful force which plays on the minds of the Indian consumers
4 Feedback and Improvements
It is very crucial to have the consumer participation In order to succeed in the long run it is crucial to allow the consumer participation at an intermediary stage of developing the product This will lead to creation of a better relationship between the company and its consumer
MARKETING STRATEGIES
Hindustan Unilever Limited has adopted a four pronged growth strategy -
1 Gunning the market with new products and brand extensions
2 Expansion of the distribution network to small towns for extensive
availability
3 Reduce prices and introduce smaller packages for products to
make them more affordable (a tool to enter price sensitive markets)
4 Focus on employ training and develop a positive attitude through
enhanced manpower development
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
fertile soil indeed for it has bred people whose caliber has changed the quality of millions of Indian consumerrsquos lives
As HULrsquos Chairman Nitin Paranjpe says ldquo We are because of our values ndash truth action courage caring rdquo
24 NURTURING TALENT
Management development amp training in Hindustan Unilever Limited
A peoplersquos company
A company is nothing but the collective intellect of its people Business growth can only take place through people growth And the more a company harnesses the potential of its people the faster it will grow Equally the faster it grows the more opportunities it can create to excite and retain talent HUL has recognized this since their inception People development has always been central to HUL and its business strategy The stretch in brands reflects the stretch in peoplersquos minds The technological feats it has accomplished reflect its peoplersquos ingenuity in deriving innovations from science The value it has extracted from capital corresponds to the value its people have added to to business processes To achieve its full potential it should continue to empower its people to stretch their minds ingenuity and abilities
The Genesis
Unilever is a multilocal ndash multinational and believes that if a company has to grow its management must instinctively understand local consumer needs and aspirations
Thus the focus is on grooming managers from within the country
Nurturing top talent
To develop and retain top talent HUL have put in place a process that helps identify potential business leaders much earlier in their careers they are then placed on a fast track of personal growth
We are already creating substantially opportunities for entrepreneurial leadership for managers through far- reaching changes to the organization specially disaggregating into smaller independent business units to bring about a greater focus on growth The aim is to provide substantial business leadership opportunities for managers as and when they are ready as opposed to when they reach a certain level of seniority
OBJECTIVES OF HINDUSTAN UNILEVER LIMITED
HUL recognizes that its consumers have a sincere and legitimate interest in the
behaviour beliefs and actions of the Company behind brands in which they place
their trust and that without its consumers the Company would not exist
HUL believes that as a general rule legislation is the most effective safeguard of
responsible conduct although in certain areas additional guidance to staff in the
form of voluntary business principles is beneficial in order to ensure that the
highest standards are met throughout the organization
HUL is conscious of the fact that the success of a corporation is a reflection of the
professionalism conduct and the responsible attitude of its management and
employees Therefore recruitment of the right people and ongoing training and
development are crucial
HUL continues to maintain its commitment to follow and respect all applicable
local laws in each of its divisions
CHAPTER - 2
RESEARCH METHODOLOGY
21 Introduction
22 Research Design
23 Modes Of Data Collection and Sample Size
RESEARCH METHODOLOGY
The purpose of the project is to compare the hair care products of Hindustan Unilever Limited and Procter amp Gamble
The data was collected with the help of secondary sources
Secondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
21 INTRODUCTION
Research is a careful critical enquiry in seeking facts and diligent investigation in order to ascertain something For formulating a significant research problem the researcher should try to acquire as much knowledge of the area in which research is to be done as possible The researcher must be fully aware of the environment to which the difficulty pertains
It refers to the method adopted to collect the relevant data and other information which forms the basis of the research writing So for the effective writing of the thesis of the report the data must be quality oriented
22 RESEARCH DESIGN
Research Design is the structure of research It is the glue that holds all of the elements in a research project together This project enables summarization of a complex structure of HUL efficiently
This research design provides answers to following questions
a) What technique have been used to collect the data b) What kind of sampling have been used in this project c) How the data have been analyzed
RESEARCH DESIGN OF THE PROJECT
The research design adopted for this project is ldquo Descriptive Researchrdquo which provides an accurate snapshot of some aspect of market environment It helps in providing information about HUL and its products and services keeping in mind the changing market scenario Its features are
The objective of such a study is to answer the who what when where when and have of the subject under investigation
Descriptive studies are well ndash structured
This study tends to be rigid and its approach cannot be changed every now and then
23 MODES OF DATA COLLECTION amp SAMPLE SIZE
Data has been collected with the help of secondary sourcesSecondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
Magazines Newspapers Company Literature Websites
CHAPTER - 3
COMPANY PROFILE 31 Organisation Structure
32 Key People of HUL
33 Business Supports
34 Distribution Network
35 Business Categories
36 Brands
37 Financial Status of HUL
38 Problems Faced by HUL
31 ORGANIZATION STRUCTURE
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods (FMCG) Company It is present in Home amp Personal Care and Foods amp Beverages categories HUL and Group companies have about 41000 employees including 1550 managers
The fundamental principle determining the organization structure is to infuse speed and flexibility in decision making and implementation with empowered managers across the companyrsquos nationwide operations For this HUL is organized into self ndash sufficient profit centers supported by certain central functions and resources to leverage economies of scale wherever relevant
32 Key People Of HUL
The Board of Directors as repositories of the corporate powers act as a guardian to the Company as also the protectors of shareholderrsquos interest
This Apex body comprises of a Non- Executive Chairman four whole time Directors and five Independent Non ndash Executive Directors The Board of the Company represents the optimum mix of professionalism knowledge and experience
Mr Harish Manwani - CHAIRMAN
Mr Harish Manwani (55) assumed charge as NON ndash Executive Chairman of the company with effect from 1st july 2005
Mr Nitin Paranjpe - CEO and Managing Director
Mr Nitin Paranjpe (46) after obtaining degree in BE (Mechanical) and MBA in marketing joined the company as a management trainee in 1987
Mr RShridhar - Chief Financial Officer
Mr Shridhar Ramamurthy (45) is a Chartered Accountant (Gold Medalist) as well as Cost Accountant and Company Secretary in HUL
33 BUSINESS SUPPORTS
Hindustan Unilever Limited is regarded as one of Indiarsquos most admired companies
It is not only the brands and the people but it is also the support systems Its Research Center is the largest private sector industrial research laboratory of its kind in India HULrsquos enviable reach in the remote heartland makes its distribution web the largest of its kind in India
34 DISTRIBUTION NETWORK
Distribution systemrsquos focus to enable easy access to their brands touch consumers with a three ndash way convergence - of product availability brand communication and higher levels of brand experience
WHAT DITRIBUTION SYSTEM SHOULD DO
The most obvious function of providing the logistics support to get the companyrsquos product to the end customer Another established role is that of fina ncing The channel partners are expected to extend credit to the next level of customers Some channelmembers however also receive credit and the net credit extended is minimal
To meet the ever ndash changing needs of the consumer HUL has set up a distribution network that ensures availability of all its products in all outlets at all the times This includes maintaining favourable trade relations providing innovative incentives to retailers and organizing demand generation activities among a host of other things
Furthermore although the distribution system is common across most businesses each of the businesses has over the years fine ndash tuned the system to meet their objectives The differences therefore lie in the manner businesses use an existing distribution network and the channel players involved therein to improve their reach and service to their customers and end users For instance the distribution
model for detergents personal products and beverages are quite different from each other due to various factors
Similarly the success stories of urban markets cannot necessarily be replicated in rural markets
The evolution of HULrsquos distribution network
The evolution of HULrsquos distribution network The first place of the HUL distribution network had wholesalers placing bulk orders directly with the company Large retailers also placed direct orders which comprised almost 30 of the total orders collected
a) HULs products are distributed through a network of about 7000 redistribution stockists covering about one million retailoutlets
b) The general trade comprises grocery stores chemists wholesale kiosks and general stores
c) Hindustan Unilever provide tailor made services to each of its channel partners
d) HUL is using the point of purchase method for much higher level of direct contact through in ndash store facilitators sampling education and experience
The company salesman grouped all these orders and placed an indent with the Head Office Goods were sent to these markets with the company salesman as the consignee The salesman then collected and distributed the products to the respective wholesalers against cash payment and the money was remitted to the company
The focus of the second phase which spanned the decades of the 40s was to provide desired products and quality service to the companyrsquos customers In order to achieve this one wholesaler in each market was appointed as a ldquo Registered Wholesalerrdquo ( RW) a stock point for the companyrsquos products in that market The company salesman still covered the market canvassing for orders from the rest of the trade He would then distribute stocks from the RW through distribution units maintained by the company The RW system therefore increased the distribution reach of the company to a larger number of customers
The highlight of the third phase was the concept of ldquoRedistribution Stockistrdquo ( RS ) who replaced the RWs The RS was required to provide the distribution units to the company salesman The RS financed his stocks and provided warehousing facilities to store them The RS also undertook demand stimulation activities on behalf of the company The second characteristic of this period we realized that the RS would be able to provide customer service only if he was serviced well This knowledge led to the establishment of the ldquo Company Depotsrdquo system This system helped in transshipment bulk breaking and as a stock point to minimize stock ndash outs at the RS level
In the recent past a significant change has been the replacement of the Company Depot by a system of third party Carrying and Forwarding Agents ( CampFAs ) The CampFAs act as buffer stock ndash points to ensure that stock ndash outs did not take place The CampFA system has also resulted in cost savings in terms of direct transportation and reduced time lag in delivery The most important benefit has been improved customer service to the RS
DISTRIBUTION AT VILLAGES ( RURAL MARKETS )
The company has brought all markets with populations of below 50000 under one rural sales organization
The team comprises an exclusive sales force and exclusive redistribution stockists
The team focuses on building superior availability of products
In rural India the network directly covers about 50000 villages reaching 250 million consumers through 6000 sub - stockists
DISTRIBUTION AT THE SUPERMARKETS
HUL has set up a full ndash scale sales organization for this channel to serve modern retailing outlets
Product tests and in ndash store sampling is provided to consumers
HARNESSING INFORMATION TECHNOLOGY
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
The objective is to make the product available at the right place and right time in the most cost effective manner
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
For this stockists have been connected through an Internet-based network called RS Net for online interaction
RS Net is part of Project Leap HULs end ndash to - end supply chain
PIONEERING NEW CHANNELS
HUL is simultaneously creating new channels designed on the same principal of holistic contact with customers
1) Project Shakti HULs partnership with Self Help Groups of rural women Started in 2001 Project Shakti has already been extended to about 50000 villages in 12 states - Andhra Pradesh Karnataka Gujarat and others
2) HINDUSTAN UNILEVER NETWORK ( HUN) it is the companyrsquos arm in the Direct Selling channel It represents a range of customized offerings in Home amp Personal Care and Foods
3) Out - Of -Home this deals in providing vending machines for hot beverages like tea coffee
4) Health and Beauty Services Lakme saloons provide specialized beauty services and solutions under the recognized authority of Lakme brand The Ayush Therapy Centers provide easy access to authentic Ayurvedic treatment and products
BUSINESS PRINCIPLES
People first
Employees people and products are more important at Hindustan Unilever Limited
than systems Systems and methods while necessary and valuable in running a complex
organization should remain managerial and operational aids but should not become ends
in themselves It is a question of priorities A strong orientation toward human beings
employees and executives is a decisive if not the decisive component of long-term
success
Quality products
Our focus is on products The ultimate justification for a company is its ability to offer
products that are appealing because of their quality convenience variety and price --
products that can stand their ground even in the face of fierce competition
Long-term view
HULmakes clear distinction between strategy and tactics It gives priority to the long-
range view Long-term thinking defuses many of the conflicts and contentions among
groups this applies to employment conditions and relations with employees as well as to
the conflicts and opposing interests of the trade and the industry Of course our ability to
focus on long-term considerations is only possible if the company is successful in the
struggle for short-term survival This is why HUL strives to maintain a satisfactory level
of profits every year
Uniformity
A very important concern at HUL has to do with uniformity how consistent HULrsquos
principles policies rules of conduct and strategies should be and to what extent they
should differ depending on the country subsidiary region branch or group of products
In general HUL tries to limit the uniformity of its policy to a requisite minimum
Diversification
HUL does not want to become either a conglomerate or a portfolio manager
HUListoperate only those businesses about which it has some special knowledge and
expertise HUL is a global company not a conglomerate hodgepodge We regard
acquisitions and efforts at diversification as logical ways to supplement our business but
only in the context of a carefully considered corporate marketing policy
Flexibility and simplicity
The publics sense of the power and size of a corporation is often inaccurate for a
companys power is limited by a host of factors including legislation competition
regulatory bodies and publicity From a business point of view it is desirable for
a firm to achieve the size best suited to a specific industry or mode of
production To be competitive internationally and make significant investments in
research and technology a larger company has an advantage From a strictly
organizational point of view flexible simple structures work best and excessively
large units should be avoided whenever possible In both respects HUL has a natural
advantage Although it is a big company it is spread out over many countries and
each of HULs factories has its own management and responsibility
Packaging
Manufacturing comprises all unit operations necessary to transform perishable raw
materials into finished products with the aim to make them safe and convenient
for the consumers The manufacturing activities of the HUL
respect natural resources by efficient use of raw materials and energy
minimize waste generation and emissions
ensure environmentally safe disposal of all waste which cannot be recycled
Regular assessments of processing practices are carried out These assessments
include
evaluation of individual plant performance with regard to operations which
have an impact on the environment
definition of targets for improvement
review of plant compliance with local government regulations company
environmental standards as well as results achieved in comparison with
targets for improvement
full investigation of incidents which may affect the environment
Information on developments in environmental protection technology and practices is
disseminated as required to ensure that all plants are using the most effective
environmental practices for their type of processing This applies also for co
packers
Marketing and distribution
Marketing is based on the principle of satisfying consumer needs This is the
foundation also for the environmental marketing approach of HUL
Environmental product claims in advertising promotional material and on
packaging are in accordance with legal requirements based on solid scientific
evidence and used in a serious and reasonable manner
Our aim is to minimize wastage in communication publicity and promotional
material in particular through more precise targeting of marketing activities
Consumer promotions and merchandising material such as consumer offers in store
promotions display material leaflets printed matter etc take environmental aspects
into account
This means due consideration of environmental impact in selecting both materials
and printing methods
In distribution energy efficient and pollution controlled methods are encouraged
wherever possible
Legislation and Regulations
It is the policy of the HUL to strictly comply with all laws and regulations
relevant to our activities We participate in discussions on food legislation and
regulations between international organizations government representatives industry
the scientific world and consumer associations We also apply this policy to
environment related matters
In doing so we cooperate with legislators through local industry associations in
order to promote laws and regulations in the field of environment which are
reasonable rational realistic applicable and enforceable We oppose unjustified bans
and any other discriminatory measures
35 BUSINESS CATEGORIES
HULrsquos purpose is to meet the everyday needs of people everywhere This vision has made HUL Indiarsquos largest Packaged Mass Consumption Goods Company with leadership in Home and Personal Care Products and Foods and BeveragesIt is the countryrsquos largest marketer of Soaps Detergents and Household Care productsIts expertise in Personal Products makes it the leader in Shampoos Skin Care Products Color Cosmetics Deodorants and Fragrances
In Foods and Beverages HUL remains the undisputed market leader in Tea Processed Coffee Branded Wheat Flour Tomato Products Ice Cream Jams and squashes
In New Ventures the new entrants are in Healthcare Confectioners and Network Marketing
HUL is also one of the countryrsquos biggest exporters and has earned the distinction of a Super Star Trading House Its Exports Division is a net foreign exchange earner Among the Exports are branded Soaps and Detergents Personal Products Tea amp Coffee Basmati Rice Castor Oil and its Derivatives
36 THE BRANDS
The formulation of branding strategies starts from the building a sustainable brand for the
company This is so as the consumers buy the brand not only for the intrinsic values
associated with it but also because of the promise that branding makes to the
consumerhellipthe promise of delivering values beyond expectation A framework is
suggested below for the formulation of a brand strategy-
1 Experiential marketing
The first component of branding strategy is the experiential marketing It is a well known
fact that the customers demand experiences instead of products or services This creates a
challenge to the organizations to find new ways to involve the customers in the value
chain so that they themselves can decide the product features and uniqueness that they
expect from the brand They want to know more about the details of the brand They
remove the shells and get into the core of the processes to understand the real value of the
brand Hence such a strategy should be framed that makes the consumers involvement
higher
2 Effective Branding
It is found that effective branding involves working on four important dimensions
namely
bull The Functional Dimension- The functional dimension concerns the perception of
benefit of the product or service associated with the brand
bull The Social Dimension- The Social Dimension concern the ability to create
identification with the group
bull The Spiritual Dimension- The Spiritual Dimension is the perception of global or
local responsibility
bull The Mental Dimension- The Mental Dimension is the ability to support the
individual mentally
3 Novel Brand Strategies
bull Customers Own the Brand- It should always be kept in mind that it is the consumers
who own the brand
bull Product Service- A sale should never be considered the ending of a transaction but the
beginning of a beautiful relationship Customer service basically creates a positive effect
on the minds of the customer and this positive influence on the mind of the consumer
makes them more open to new ideas and reduces their skeptic towards the brand
bull Buzz Marketing- The development in the technology used in the country has lead to
the increased importance paid to the concept of buzz marketing Branding increasingly
nowadays is moving into Internet-based applications
bull Religious Branding- since it is considered that religion has the power to bind people
and unify them under one common ideal an effective brand strategy must take into
account this powerful force which plays on the minds of the Indian consumers
4 Feedback and Improvements
It is very crucial to have the consumer participation In order to succeed in the long run it is crucial to allow the consumer participation at an intermediary stage of developing the product This will lead to creation of a better relationship between the company and its consumer
MARKETING STRATEGIES
Hindustan Unilever Limited has adopted a four pronged growth strategy -
1 Gunning the market with new products and brand extensions
2 Expansion of the distribution network to small towns for extensive
availability
3 Reduce prices and introduce smaller packages for products to
make them more affordable (a tool to enter price sensitive markets)
4 Focus on employ training and develop a positive attitude through
enhanced manpower development
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
We are already creating substantially opportunities for entrepreneurial leadership for managers through far- reaching changes to the organization specially disaggregating into smaller independent business units to bring about a greater focus on growth The aim is to provide substantial business leadership opportunities for managers as and when they are ready as opposed to when they reach a certain level of seniority
OBJECTIVES OF HINDUSTAN UNILEVER LIMITED
HUL recognizes that its consumers have a sincere and legitimate interest in the
behaviour beliefs and actions of the Company behind brands in which they place
their trust and that without its consumers the Company would not exist
HUL believes that as a general rule legislation is the most effective safeguard of
responsible conduct although in certain areas additional guidance to staff in the
form of voluntary business principles is beneficial in order to ensure that the
highest standards are met throughout the organization
HUL is conscious of the fact that the success of a corporation is a reflection of the
professionalism conduct and the responsible attitude of its management and
employees Therefore recruitment of the right people and ongoing training and
development are crucial
HUL continues to maintain its commitment to follow and respect all applicable
local laws in each of its divisions
CHAPTER - 2
RESEARCH METHODOLOGY
21 Introduction
22 Research Design
23 Modes Of Data Collection and Sample Size
RESEARCH METHODOLOGY
The purpose of the project is to compare the hair care products of Hindustan Unilever Limited and Procter amp Gamble
The data was collected with the help of secondary sources
Secondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
21 INTRODUCTION
Research is a careful critical enquiry in seeking facts and diligent investigation in order to ascertain something For formulating a significant research problem the researcher should try to acquire as much knowledge of the area in which research is to be done as possible The researcher must be fully aware of the environment to which the difficulty pertains
It refers to the method adopted to collect the relevant data and other information which forms the basis of the research writing So for the effective writing of the thesis of the report the data must be quality oriented
22 RESEARCH DESIGN
Research Design is the structure of research It is the glue that holds all of the elements in a research project together This project enables summarization of a complex structure of HUL efficiently
This research design provides answers to following questions
a) What technique have been used to collect the data b) What kind of sampling have been used in this project c) How the data have been analyzed
RESEARCH DESIGN OF THE PROJECT
The research design adopted for this project is ldquo Descriptive Researchrdquo which provides an accurate snapshot of some aspect of market environment It helps in providing information about HUL and its products and services keeping in mind the changing market scenario Its features are
The objective of such a study is to answer the who what when where when and have of the subject under investigation
Descriptive studies are well ndash structured
This study tends to be rigid and its approach cannot be changed every now and then
23 MODES OF DATA COLLECTION amp SAMPLE SIZE
Data has been collected with the help of secondary sourcesSecondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
Magazines Newspapers Company Literature Websites
CHAPTER - 3
COMPANY PROFILE 31 Organisation Structure
32 Key People of HUL
33 Business Supports
34 Distribution Network
35 Business Categories
36 Brands
37 Financial Status of HUL
38 Problems Faced by HUL
31 ORGANIZATION STRUCTURE
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods (FMCG) Company It is present in Home amp Personal Care and Foods amp Beverages categories HUL and Group companies have about 41000 employees including 1550 managers
The fundamental principle determining the organization structure is to infuse speed and flexibility in decision making and implementation with empowered managers across the companyrsquos nationwide operations For this HUL is organized into self ndash sufficient profit centers supported by certain central functions and resources to leverage economies of scale wherever relevant
32 Key People Of HUL
The Board of Directors as repositories of the corporate powers act as a guardian to the Company as also the protectors of shareholderrsquos interest
This Apex body comprises of a Non- Executive Chairman four whole time Directors and five Independent Non ndash Executive Directors The Board of the Company represents the optimum mix of professionalism knowledge and experience
Mr Harish Manwani - CHAIRMAN
Mr Harish Manwani (55) assumed charge as NON ndash Executive Chairman of the company with effect from 1st july 2005
Mr Nitin Paranjpe - CEO and Managing Director
Mr Nitin Paranjpe (46) after obtaining degree in BE (Mechanical) and MBA in marketing joined the company as a management trainee in 1987
Mr RShridhar - Chief Financial Officer
Mr Shridhar Ramamurthy (45) is a Chartered Accountant (Gold Medalist) as well as Cost Accountant and Company Secretary in HUL
33 BUSINESS SUPPORTS
Hindustan Unilever Limited is regarded as one of Indiarsquos most admired companies
It is not only the brands and the people but it is also the support systems Its Research Center is the largest private sector industrial research laboratory of its kind in India HULrsquos enviable reach in the remote heartland makes its distribution web the largest of its kind in India
34 DISTRIBUTION NETWORK
Distribution systemrsquos focus to enable easy access to their brands touch consumers with a three ndash way convergence - of product availability brand communication and higher levels of brand experience
WHAT DITRIBUTION SYSTEM SHOULD DO
The most obvious function of providing the logistics support to get the companyrsquos product to the end customer Another established role is that of fina ncing The channel partners are expected to extend credit to the next level of customers Some channelmembers however also receive credit and the net credit extended is minimal
To meet the ever ndash changing needs of the consumer HUL has set up a distribution network that ensures availability of all its products in all outlets at all the times This includes maintaining favourable trade relations providing innovative incentives to retailers and organizing demand generation activities among a host of other things
Furthermore although the distribution system is common across most businesses each of the businesses has over the years fine ndash tuned the system to meet their objectives The differences therefore lie in the manner businesses use an existing distribution network and the channel players involved therein to improve their reach and service to their customers and end users For instance the distribution
model for detergents personal products and beverages are quite different from each other due to various factors
Similarly the success stories of urban markets cannot necessarily be replicated in rural markets
The evolution of HULrsquos distribution network
The evolution of HULrsquos distribution network The first place of the HUL distribution network had wholesalers placing bulk orders directly with the company Large retailers also placed direct orders which comprised almost 30 of the total orders collected
a) HULs products are distributed through a network of about 7000 redistribution stockists covering about one million retailoutlets
b) The general trade comprises grocery stores chemists wholesale kiosks and general stores
c) Hindustan Unilever provide tailor made services to each of its channel partners
d) HUL is using the point of purchase method for much higher level of direct contact through in ndash store facilitators sampling education and experience
The company salesman grouped all these orders and placed an indent with the Head Office Goods were sent to these markets with the company salesman as the consignee The salesman then collected and distributed the products to the respective wholesalers against cash payment and the money was remitted to the company
The focus of the second phase which spanned the decades of the 40s was to provide desired products and quality service to the companyrsquos customers In order to achieve this one wholesaler in each market was appointed as a ldquo Registered Wholesalerrdquo ( RW) a stock point for the companyrsquos products in that market The company salesman still covered the market canvassing for orders from the rest of the trade He would then distribute stocks from the RW through distribution units maintained by the company The RW system therefore increased the distribution reach of the company to a larger number of customers
The highlight of the third phase was the concept of ldquoRedistribution Stockistrdquo ( RS ) who replaced the RWs The RS was required to provide the distribution units to the company salesman The RS financed his stocks and provided warehousing facilities to store them The RS also undertook demand stimulation activities on behalf of the company The second characteristic of this period we realized that the RS would be able to provide customer service only if he was serviced well This knowledge led to the establishment of the ldquo Company Depotsrdquo system This system helped in transshipment bulk breaking and as a stock point to minimize stock ndash outs at the RS level
In the recent past a significant change has been the replacement of the Company Depot by a system of third party Carrying and Forwarding Agents ( CampFAs ) The CampFAs act as buffer stock ndash points to ensure that stock ndash outs did not take place The CampFA system has also resulted in cost savings in terms of direct transportation and reduced time lag in delivery The most important benefit has been improved customer service to the RS
DISTRIBUTION AT VILLAGES ( RURAL MARKETS )
The company has brought all markets with populations of below 50000 under one rural sales organization
The team comprises an exclusive sales force and exclusive redistribution stockists
The team focuses on building superior availability of products
In rural India the network directly covers about 50000 villages reaching 250 million consumers through 6000 sub - stockists
DISTRIBUTION AT THE SUPERMARKETS
HUL has set up a full ndash scale sales organization for this channel to serve modern retailing outlets
Product tests and in ndash store sampling is provided to consumers
HARNESSING INFORMATION TECHNOLOGY
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
The objective is to make the product available at the right place and right time in the most cost effective manner
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
For this stockists have been connected through an Internet-based network called RS Net for online interaction
RS Net is part of Project Leap HULs end ndash to - end supply chain
PIONEERING NEW CHANNELS
HUL is simultaneously creating new channels designed on the same principal of holistic contact with customers
1) Project Shakti HULs partnership with Self Help Groups of rural women Started in 2001 Project Shakti has already been extended to about 50000 villages in 12 states - Andhra Pradesh Karnataka Gujarat and others
2) HINDUSTAN UNILEVER NETWORK ( HUN) it is the companyrsquos arm in the Direct Selling channel It represents a range of customized offerings in Home amp Personal Care and Foods
3) Out - Of -Home this deals in providing vending machines for hot beverages like tea coffee
4) Health and Beauty Services Lakme saloons provide specialized beauty services and solutions under the recognized authority of Lakme brand The Ayush Therapy Centers provide easy access to authentic Ayurvedic treatment and products
BUSINESS PRINCIPLES
People first
Employees people and products are more important at Hindustan Unilever Limited
than systems Systems and methods while necessary and valuable in running a complex
organization should remain managerial and operational aids but should not become ends
in themselves It is a question of priorities A strong orientation toward human beings
employees and executives is a decisive if not the decisive component of long-term
success
Quality products
Our focus is on products The ultimate justification for a company is its ability to offer
products that are appealing because of their quality convenience variety and price --
products that can stand their ground even in the face of fierce competition
Long-term view
HULmakes clear distinction between strategy and tactics It gives priority to the long-
range view Long-term thinking defuses many of the conflicts and contentions among
groups this applies to employment conditions and relations with employees as well as to
the conflicts and opposing interests of the trade and the industry Of course our ability to
focus on long-term considerations is only possible if the company is successful in the
struggle for short-term survival This is why HUL strives to maintain a satisfactory level
of profits every year
Uniformity
A very important concern at HUL has to do with uniformity how consistent HULrsquos
principles policies rules of conduct and strategies should be and to what extent they
should differ depending on the country subsidiary region branch or group of products
In general HUL tries to limit the uniformity of its policy to a requisite minimum
Diversification
HUL does not want to become either a conglomerate or a portfolio manager
HUListoperate only those businesses about which it has some special knowledge and
expertise HUL is a global company not a conglomerate hodgepodge We regard
acquisitions and efforts at diversification as logical ways to supplement our business but
only in the context of a carefully considered corporate marketing policy
Flexibility and simplicity
The publics sense of the power and size of a corporation is often inaccurate for a
companys power is limited by a host of factors including legislation competition
regulatory bodies and publicity From a business point of view it is desirable for
a firm to achieve the size best suited to a specific industry or mode of
production To be competitive internationally and make significant investments in
research and technology a larger company has an advantage From a strictly
organizational point of view flexible simple structures work best and excessively
large units should be avoided whenever possible In both respects HUL has a natural
advantage Although it is a big company it is spread out over many countries and
each of HULs factories has its own management and responsibility
Packaging
Manufacturing comprises all unit operations necessary to transform perishable raw
materials into finished products with the aim to make them safe and convenient
for the consumers The manufacturing activities of the HUL
respect natural resources by efficient use of raw materials and energy
minimize waste generation and emissions
ensure environmentally safe disposal of all waste which cannot be recycled
Regular assessments of processing practices are carried out These assessments
include
evaluation of individual plant performance with regard to operations which
have an impact on the environment
definition of targets for improvement
review of plant compliance with local government regulations company
environmental standards as well as results achieved in comparison with
targets for improvement
full investigation of incidents which may affect the environment
Information on developments in environmental protection technology and practices is
disseminated as required to ensure that all plants are using the most effective
environmental practices for their type of processing This applies also for co
packers
Marketing and distribution
Marketing is based on the principle of satisfying consumer needs This is the
foundation also for the environmental marketing approach of HUL
Environmental product claims in advertising promotional material and on
packaging are in accordance with legal requirements based on solid scientific
evidence and used in a serious and reasonable manner
Our aim is to minimize wastage in communication publicity and promotional
material in particular through more precise targeting of marketing activities
Consumer promotions and merchandising material such as consumer offers in store
promotions display material leaflets printed matter etc take environmental aspects
into account
This means due consideration of environmental impact in selecting both materials
and printing methods
In distribution energy efficient and pollution controlled methods are encouraged
wherever possible
Legislation and Regulations
It is the policy of the HUL to strictly comply with all laws and regulations
relevant to our activities We participate in discussions on food legislation and
regulations between international organizations government representatives industry
the scientific world and consumer associations We also apply this policy to
environment related matters
In doing so we cooperate with legislators through local industry associations in
order to promote laws and regulations in the field of environment which are
reasonable rational realistic applicable and enforceable We oppose unjustified bans
and any other discriminatory measures
35 BUSINESS CATEGORIES
HULrsquos purpose is to meet the everyday needs of people everywhere This vision has made HUL Indiarsquos largest Packaged Mass Consumption Goods Company with leadership in Home and Personal Care Products and Foods and BeveragesIt is the countryrsquos largest marketer of Soaps Detergents and Household Care productsIts expertise in Personal Products makes it the leader in Shampoos Skin Care Products Color Cosmetics Deodorants and Fragrances
In Foods and Beverages HUL remains the undisputed market leader in Tea Processed Coffee Branded Wheat Flour Tomato Products Ice Cream Jams and squashes
In New Ventures the new entrants are in Healthcare Confectioners and Network Marketing
HUL is also one of the countryrsquos biggest exporters and has earned the distinction of a Super Star Trading House Its Exports Division is a net foreign exchange earner Among the Exports are branded Soaps and Detergents Personal Products Tea amp Coffee Basmati Rice Castor Oil and its Derivatives
36 THE BRANDS
The formulation of branding strategies starts from the building a sustainable brand for the
company This is so as the consumers buy the brand not only for the intrinsic values
associated with it but also because of the promise that branding makes to the
consumerhellipthe promise of delivering values beyond expectation A framework is
suggested below for the formulation of a brand strategy-
1 Experiential marketing
The first component of branding strategy is the experiential marketing It is a well known
fact that the customers demand experiences instead of products or services This creates a
challenge to the organizations to find new ways to involve the customers in the value
chain so that they themselves can decide the product features and uniqueness that they
expect from the brand They want to know more about the details of the brand They
remove the shells and get into the core of the processes to understand the real value of the
brand Hence such a strategy should be framed that makes the consumers involvement
higher
2 Effective Branding
It is found that effective branding involves working on four important dimensions
namely
bull The Functional Dimension- The functional dimension concerns the perception of
benefit of the product or service associated with the brand
bull The Social Dimension- The Social Dimension concern the ability to create
identification with the group
bull The Spiritual Dimension- The Spiritual Dimension is the perception of global or
local responsibility
bull The Mental Dimension- The Mental Dimension is the ability to support the
individual mentally
3 Novel Brand Strategies
bull Customers Own the Brand- It should always be kept in mind that it is the consumers
who own the brand
bull Product Service- A sale should never be considered the ending of a transaction but the
beginning of a beautiful relationship Customer service basically creates a positive effect
on the minds of the customer and this positive influence on the mind of the consumer
makes them more open to new ideas and reduces their skeptic towards the brand
bull Buzz Marketing- The development in the technology used in the country has lead to
the increased importance paid to the concept of buzz marketing Branding increasingly
nowadays is moving into Internet-based applications
bull Religious Branding- since it is considered that religion has the power to bind people
and unify them under one common ideal an effective brand strategy must take into
account this powerful force which plays on the minds of the Indian consumers
4 Feedback and Improvements
It is very crucial to have the consumer participation In order to succeed in the long run it is crucial to allow the consumer participation at an intermediary stage of developing the product This will lead to creation of a better relationship between the company and its consumer
MARKETING STRATEGIES
Hindustan Unilever Limited has adopted a four pronged growth strategy -
1 Gunning the market with new products and brand extensions
2 Expansion of the distribution network to small towns for extensive
availability
3 Reduce prices and introduce smaller packages for products to
make them more affordable (a tool to enter price sensitive markets)
4 Focus on employ training and develop a positive attitude through
enhanced manpower development
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
CHAPTER - 2
RESEARCH METHODOLOGY
21 Introduction
22 Research Design
23 Modes Of Data Collection and Sample Size
RESEARCH METHODOLOGY
The purpose of the project is to compare the hair care products of Hindustan Unilever Limited and Procter amp Gamble
The data was collected with the help of secondary sources
Secondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
21 INTRODUCTION
Research is a careful critical enquiry in seeking facts and diligent investigation in order to ascertain something For formulating a significant research problem the researcher should try to acquire as much knowledge of the area in which research is to be done as possible The researcher must be fully aware of the environment to which the difficulty pertains
It refers to the method adopted to collect the relevant data and other information which forms the basis of the research writing So for the effective writing of the thesis of the report the data must be quality oriented
22 RESEARCH DESIGN
Research Design is the structure of research It is the glue that holds all of the elements in a research project together This project enables summarization of a complex structure of HUL efficiently
This research design provides answers to following questions
a) What technique have been used to collect the data b) What kind of sampling have been used in this project c) How the data have been analyzed
RESEARCH DESIGN OF THE PROJECT
The research design adopted for this project is ldquo Descriptive Researchrdquo which provides an accurate snapshot of some aspect of market environment It helps in providing information about HUL and its products and services keeping in mind the changing market scenario Its features are
The objective of such a study is to answer the who what when where when and have of the subject under investigation
Descriptive studies are well ndash structured
This study tends to be rigid and its approach cannot be changed every now and then
23 MODES OF DATA COLLECTION amp SAMPLE SIZE
Data has been collected with the help of secondary sourcesSecondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
Magazines Newspapers Company Literature Websites
CHAPTER - 3
COMPANY PROFILE 31 Organisation Structure
32 Key People of HUL
33 Business Supports
34 Distribution Network
35 Business Categories
36 Brands
37 Financial Status of HUL
38 Problems Faced by HUL
31 ORGANIZATION STRUCTURE
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods (FMCG) Company It is present in Home amp Personal Care and Foods amp Beverages categories HUL and Group companies have about 41000 employees including 1550 managers
The fundamental principle determining the organization structure is to infuse speed and flexibility in decision making and implementation with empowered managers across the companyrsquos nationwide operations For this HUL is organized into self ndash sufficient profit centers supported by certain central functions and resources to leverage economies of scale wherever relevant
32 Key People Of HUL
The Board of Directors as repositories of the corporate powers act as a guardian to the Company as also the protectors of shareholderrsquos interest
This Apex body comprises of a Non- Executive Chairman four whole time Directors and five Independent Non ndash Executive Directors The Board of the Company represents the optimum mix of professionalism knowledge and experience
Mr Harish Manwani - CHAIRMAN
Mr Harish Manwani (55) assumed charge as NON ndash Executive Chairman of the company with effect from 1st july 2005
Mr Nitin Paranjpe - CEO and Managing Director
Mr Nitin Paranjpe (46) after obtaining degree in BE (Mechanical) and MBA in marketing joined the company as a management trainee in 1987
Mr RShridhar - Chief Financial Officer
Mr Shridhar Ramamurthy (45) is a Chartered Accountant (Gold Medalist) as well as Cost Accountant and Company Secretary in HUL
33 BUSINESS SUPPORTS
Hindustan Unilever Limited is regarded as one of Indiarsquos most admired companies
It is not only the brands and the people but it is also the support systems Its Research Center is the largest private sector industrial research laboratory of its kind in India HULrsquos enviable reach in the remote heartland makes its distribution web the largest of its kind in India
34 DISTRIBUTION NETWORK
Distribution systemrsquos focus to enable easy access to their brands touch consumers with a three ndash way convergence - of product availability brand communication and higher levels of brand experience
WHAT DITRIBUTION SYSTEM SHOULD DO
The most obvious function of providing the logistics support to get the companyrsquos product to the end customer Another established role is that of fina ncing The channel partners are expected to extend credit to the next level of customers Some channelmembers however also receive credit and the net credit extended is minimal
To meet the ever ndash changing needs of the consumer HUL has set up a distribution network that ensures availability of all its products in all outlets at all the times This includes maintaining favourable trade relations providing innovative incentives to retailers and organizing demand generation activities among a host of other things
Furthermore although the distribution system is common across most businesses each of the businesses has over the years fine ndash tuned the system to meet their objectives The differences therefore lie in the manner businesses use an existing distribution network and the channel players involved therein to improve their reach and service to their customers and end users For instance the distribution
model for detergents personal products and beverages are quite different from each other due to various factors
Similarly the success stories of urban markets cannot necessarily be replicated in rural markets
The evolution of HULrsquos distribution network
The evolution of HULrsquos distribution network The first place of the HUL distribution network had wholesalers placing bulk orders directly with the company Large retailers also placed direct orders which comprised almost 30 of the total orders collected
a) HULs products are distributed through a network of about 7000 redistribution stockists covering about one million retailoutlets
b) The general trade comprises grocery stores chemists wholesale kiosks and general stores
c) Hindustan Unilever provide tailor made services to each of its channel partners
d) HUL is using the point of purchase method for much higher level of direct contact through in ndash store facilitators sampling education and experience
The company salesman grouped all these orders and placed an indent with the Head Office Goods were sent to these markets with the company salesman as the consignee The salesman then collected and distributed the products to the respective wholesalers against cash payment and the money was remitted to the company
The focus of the second phase which spanned the decades of the 40s was to provide desired products and quality service to the companyrsquos customers In order to achieve this one wholesaler in each market was appointed as a ldquo Registered Wholesalerrdquo ( RW) a stock point for the companyrsquos products in that market The company salesman still covered the market canvassing for orders from the rest of the trade He would then distribute stocks from the RW through distribution units maintained by the company The RW system therefore increased the distribution reach of the company to a larger number of customers
The highlight of the third phase was the concept of ldquoRedistribution Stockistrdquo ( RS ) who replaced the RWs The RS was required to provide the distribution units to the company salesman The RS financed his stocks and provided warehousing facilities to store them The RS also undertook demand stimulation activities on behalf of the company The second characteristic of this period we realized that the RS would be able to provide customer service only if he was serviced well This knowledge led to the establishment of the ldquo Company Depotsrdquo system This system helped in transshipment bulk breaking and as a stock point to minimize stock ndash outs at the RS level
In the recent past a significant change has been the replacement of the Company Depot by a system of third party Carrying and Forwarding Agents ( CampFAs ) The CampFAs act as buffer stock ndash points to ensure that stock ndash outs did not take place The CampFA system has also resulted in cost savings in terms of direct transportation and reduced time lag in delivery The most important benefit has been improved customer service to the RS
DISTRIBUTION AT VILLAGES ( RURAL MARKETS )
The company has brought all markets with populations of below 50000 under one rural sales organization
The team comprises an exclusive sales force and exclusive redistribution stockists
The team focuses on building superior availability of products
In rural India the network directly covers about 50000 villages reaching 250 million consumers through 6000 sub - stockists
DISTRIBUTION AT THE SUPERMARKETS
HUL has set up a full ndash scale sales organization for this channel to serve modern retailing outlets
Product tests and in ndash store sampling is provided to consumers
HARNESSING INFORMATION TECHNOLOGY
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
The objective is to make the product available at the right place and right time in the most cost effective manner
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
For this stockists have been connected through an Internet-based network called RS Net for online interaction
RS Net is part of Project Leap HULs end ndash to - end supply chain
PIONEERING NEW CHANNELS
HUL is simultaneously creating new channels designed on the same principal of holistic contact with customers
1) Project Shakti HULs partnership with Self Help Groups of rural women Started in 2001 Project Shakti has already been extended to about 50000 villages in 12 states - Andhra Pradesh Karnataka Gujarat and others
2) HINDUSTAN UNILEVER NETWORK ( HUN) it is the companyrsquos arm in the Direct Selling channel It represents a range of customized offerings in Home amp Personal Care and Foods
3) Out - Of -Home this deals in providing vending machines for hot beverages like tea coffee
4) Health and Beauty Services Lakme saloons provide specialized beauty services and solutions under the recognized authority of Lakme brand The Ayush Therapy Centers provide easy access to authentic Ayurvedic treatment and products
BUSINESS PRINCIPLES
People first
Employees people and products are more important at Hindustan Unilever Limited
than systems Systems and methods while necessary and valuable in running a complex
organization should remain managerial and operational aids but should not become ends
in themselves It is a question of priorities A strong orientation toward human beings
employees and executives is a decisive if not the decisive component of long-term
success
Quality products
Our focus is on products The ultimate justification for a company is its ability to offer
products that are appealing because of their quality convenience variety and price --
products that can stand their ground even in the face of fierce competition
Long-term view
HULmakes clear distinction between strategy and tactics It gives priority to the long-
range view Long-term thinking defuses many of the conflicts and contentions among
groups this applies to employment conditions and relations with employees as well as to
the conflicts and opposing interests of the trade and the industry Of course our ability to
focus on long-term considerations is only possible if the company is successful in the
struggle for short-term survival This is why HUL strives to maintain a satisfactory level
of profits every year
Uniformity
A very important concern at HUL has to do with uniformity how consistent HULrsquos
principles policies rules of conduct and strategies should be and to what extent they
should differ depending on the country subsidiary region branch or group of products
In general HUL tries to limit the uniformity of its policy to a requisite minimum
Diversification
HUL does not want to become either a conglomerate or a portfolio manager
HUListoperate only those businesses about which it has some special knowledge and
expertise HUL is a global company not a conglomerate hodgepodge We regard
acquisitions and efforts at diversification as logical ways to supplement our business but
only in the context of a carefully considered corporate marketing policy
Flexibility and simplicity
The publics sense of the power and size of a corporation is often inaccurate for a
companys power is limited by a host of factors including legislation competition
regulatory bodies and publicity From a business point of view it is desirable for
a firm to achieve the size best suited to a specific industry or mode of
production To be competitive internationally and make significant investments in
research and technology a larger company has an advantage From a strictly
organizational point of view flexible simple structures work best and excessively
large units should be avoided whenever possible In both respects HUL has a natural
advantage Although it is a big company it is spread out over many countries and
each of HULs factories has its own management and responsibility
Packaging
Manufacturing comprises all unit operations necessary to transform perishable raw
materials into finished products with the aim to make them safe and convenient
for the consumers The manufacturing activities of the HUL
respect natural resources by efficient use of raw materials and energy
minimize waste generation and emissions
ensure environmentally safe disposal of all waste which cannot be recycled
Regular assessments of processing practices are carried out These assessments
include
evaluation of individual plant performance with regard to operations which
have an impact on the environment
definition of targets for improvement
review of plant compliance with local government regulations company
environmental standards as well as results achieved in comparison with
targets for improvement
full investigation of incidents which may affect the environment
Information on developments in environmental protection technology and practices is
disseminated as required to ensure that all plants are using the most effective
environmental practices for their type of processing This applies also for co
packers
Marketing and distribution
Marketing is based on the principle of satisfying consumer needs This is the
foundation also for the environmental marketing approach of HUL
Environmental product claims in advertising promotional material and on
packaging are in accordance with legal requirements based on solid scientific
evidence and used in a serious and reasonable manner
Our aim is to minimize wastage in communication publicity and promotional
material in particular through more precise targeting of marketing activities
Consumer promotions and merchandising material such as consumer offers in store
promotions display material leaflets printed matter etc take environmental aspects
into account
This means due consideration of environmental impact in selecting both materials
and printing methods
In distribution energy efficient and pollution controlled methods are encouraged
wherever possible
Legislation and Regulations
It is the policy of the HUL to strictly comply with all laws and regulations
relevant to our activities We participate in discussions on food legislation and
regulations between international organizations government representatives industry
the scientific world and consumer associations We also apply this policy to
environment related matters
In doing so we cooperate with legislators through local industry associations in
order to promote laws and regulations in the field of environment which are
reasonable rational realistic applicable and enforceable We oppose unjustified bans
and any other discriminatory measures
35 BUSINESS CATEGORIES
HULrsquos purpose is to meet the everyday needs of people everywhere This vision has made HUL Indiarsquos largest Packaged Mass Consumption Goods Company with leadership in Home and Personal Care Products and Foods and BeveragesIt is the countryrsquos largest marketer of Soaps Detergents and Household Care productsIts expertise in Personal Products makes it the leader in Shampoos Skin Care Products Color Cosmetics Deodorants and Fragrances
In Foods and Beverages HUL remains the undisputed market leader in Tea Processed Coffee Branded Wheat Flour Tomato Products Ice Cream Jams and squashes
In New Ventures the new entrants are in Healthcare Confectioners and Network Marketing
HUL is also one of the countryrsquos biggest exporters and has earned the distinction of a Super Star Trading House Its Exports Division is a net foreign exchange earner Among the Exports are branded Soaps and Detergents Personal Products Tea amp Coffee Basmati Rice Castor Oil and its Derivatives
36 THE BRANDS
The formulation of branding strategies starts from the building a sustainable brand for the
company This is so as the consumers buy the brand not only for the intrinsic values
associated with it but also because of the promise that branding makes to the
consumerhellipthe promise of delivering values beyond expectation A framework is
suggested below for the formulation of a brand strategy-
1 Experiential marketing
The first component of branding strategy is the experiential marketing It is a well known
fact that the customers demand experiences instead of products or services This creates a
challenge to the organizations to find new ways to involve the customers in the value
chain so that they themselves can decide the product features and uniqueness that they
expect from the brand They want to know more about the details of the brand They
remove the shells and get into the core of the processes to understand the real value of the
brand Hence such a strategy should be framed that makes the consumers involvement
higher
2 Effective Branding
It is found that effective branding involves working on four important dimensions
namely
bull The Functional Dimension- The functional dimension concerns the perception of
benefit of the product or service associated with the brand
bull The Social Dimension- The Social Dimension concern the ability to create
identification with the group
bull The Spiritual Dimension- The Spiritual Dimension is the perception of global or
local responsibility
bull The Mental Dimension- The Mental Dimension is the ability to support the
individual mentally
3 Novel Brand Strategies
bull Customers Own the Brand- It should always be kept in mind that it is the consumers
who own the brand
bull Product Service- A sale should never be considered the ending of a transaction but the
beginning of a beautiful relationship Customer service basically creates a positive effect
on the minds of the customer and this positive influence on the mind of the consumer
makes them more open to new ideas and reduces their skeptic towards the brand
bull Buzz Marketing- The development in the technology used in the country has lead to
the increased importance paid to the concept of buzz marketing Branding increasingly
nowadays is moving into Internet-based applications
bull Religious Branding- since it is considered that religion has the power to bind people
and unify them under one common ideal an effective brand strategy must take into
account this powerful force which plays on the minds of the Indian consumers
4 Feedback and Improvements
It is very crucial to have the consumer participation In order to succeed in the long run it is crucial to allow the consumer participation at an intermediary stage of developing the product This will lead to creation of a better relationship between the company and its consumer
MARKETING STRATEGIES
Hindustan Unilever Limited has adopted a four pronged growth strategy -
1 Gunning the market with new products and brand extensions
2 Expansion of the distribution network to small towns for extensive
availability
3 Reduce prices and introduce smaller packages for products to
make them more affordable (a tool to enter price sensitive markets)
4 Focus on employ training and develop a positive attitude through
enhanced manpower development
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
RESEARCH METHODOLOGY
The purpose of the project is to compare the hair care products of Hindustan Unilever Limited and Procter amp Gamble
The data was collected with the help of secondary sources
Secondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
21 INTRODUCTION
Research is a careful critical enquiry in seeking facts and diligent investigation in order to ascertain something For formulating a significant research problem the researcher should try to acquire as much knowledge of the area in which research is to be done as possible The researcher must be fully aware of the environment to which the difficulty pertains
It refers to the method adopted to collect the relevant data and other information which forms the basis of the research writing So for the effective writing of the thesis of the report the data must be quality oriented
22 RESEARCH DESIGN
Research Design is the structure of research It is the glue that holds all of the elements in a research project together This project enables summarization of a complex structure of HUL efficiently
This research design provides answers to following questions
a) What technique have been used to collect the data b) What kind of sampling have been used in this project c) How the data have been analyzed
RESEARCH DESIGN OF THE PROJECT
The research design adopted for this project is ldquo Descriptive Researchrdquo which provides an accurate snapshot of some aspect of market environment It helps in providing information about HUL and its products and services keeping in mind the changing market scenario Its features are
The objective of such a study is to answer the who what when where when and have of the subject under investigation
Descriptive studies are well ndash structured
This study tends to be rigid and its approach cannot be changed every now and then
23 MODES OF DATA COLLECTION amp SAMPLE SIZE
Data has been collected with the help of secondary sourcesSecondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
Magazines Newspapers Company Literature Websites
CHAPTER - 3
COMPANY PROFILE 31 Organisation Structure
32 Key People of HUL
33 Business Supports
34 Distribution Network
35 Business Categories
36 Brands
37 Financial Status of HUL
38 Problems Faced by HUL
31 ORGANIZATION STRUCTURE
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods (FMCG) Company It is present in Home amp Personal Care and Foods amp Beverages categories HUL and Group companies have about 41000 employees including 1550 managers
The fundamental principle determining the organization structure is to infuse speed and flexibility in decision making and implementation with empowered managers across the companyrsquos nationwide operations For this HUL is organized into self ndash sufficient profit centers supported by certain central functions and resources to leverage economies of scale wherever relevant
32 Key People Of HUL
The Board of Directors as repositories of the corporate powers act as a guardian to the Company as also the protectors of shareholderrsquos interest
This Apex body comprises of a Non- Executive Chairman four whole time Directors and five Independent Non ndash Executive Directors The Board of the Company represents the optimum mix of professionalism knowledge and experience
Mr Harish Manwani - CHAIRMAN
Mr Harish Manwani (55) assumed charge as NON ndash Executive Chairman of the company with effect from 1st july 2005
Mr Nitin Paranjpe - CEO and Managing Director
Mr Nitin Paranjpe (46) after obtaining degree in BE (Mechanical) and MBA in marketing joined the company as a management trainee in 1987
Mr RShridhar - Chief Financial Officer
Mr Shridhar Ramamurthy (45) is a Chartered Accountant (Gold Medalist) as well as Cost Accountant and Company Secretary in HUL
33 BUSINESS SUPPORTS
Hindustan Unilever Limited is regarded as one of Indiarsquos most admired companies
It is not only the brands and the people but it is also the support systems Its Research Center is the largest private sector industrial research laboratory of its kind in India HULrsquos enviable reach in the remote heartland makes its distribution web the largest of its kind in India
34 DISTRIBUTION NETWORK
Distribution systemrsquos focus to enable easy access to their brands touch consumers with a three ndash way convergence - of product availability brand communication and higher levels of brand experience
WHAT DITRIBUTION SYSTEM SHOULD DO
The most obvious function of providing the logistics support to get the companyrsquos product to the end customer Another established role is that of fina ncing The channel partners are expected to extend credit to the next level of customers Some channelmembers however also receive credit and the net credit extended is minimal
To meet the ever ndash changing needs of the consumer HUL has set up a distribution network that ensures availability of all its products in all outlets at all the times This includes maintaining favourable trade relations providing innovative incentives to retailers and organizing demand generation activities among a host of other things
Furthermore although the distribution system is common across most businesses each of the businesses has over the years fine ndash tuned the system to meet their objectives The differences therefore lie in the manner businesses use an existing distribution network and the channel players involved therein to improve their reach and service to their customers and end users For instance the distribution
model for detergents personal products and beverages are quite different from each other due to various factors
Similarly the success stories of urban markets cannot necessarily be replicated in rural markets
The evolution of HULrsquos distribution network
The evolution of HULrsquos distribution network The first place of the HUL distribution network had wholesalers placing bulk orders directly with the company Large retailers also placed direct orders which comprised almost 30 of the total orders collected
a) HULs products are distributed through a network of about 7000 redistribution stockists covering about one million retailoutlets
b) The general trade comprises grocery stores chemists wholesale kiosks and general stores
c) Hindustan Unilever provide tailor made services to each of its channel partners
d) HUL is using the point of purchase method for much higher level of direct contact through in ndash store facilitators sampling education and experience
The company salesman grouped all these orders and placed an indent with the Head Office Goods were sent to these markets with the company salesman as the consignee The salesman then collected and distributed the products to the respective wholesalers against cash payment and the money was remitted to the company
The focus of the second phase which spanned the decades of the 40s was to provide desired products and quality service to the companyrsquos customers In order to achieve this one wholesaler in each market was appointed as a ldquo Registered Wholesalerrdquo ( RW) a stock point for the companyrsquos products in that market The company salesman still covered the market canvassing for orders from the rest of the trade He would then distribute stocks from the RW through distribution units maintained by the company The RW system therefore increased the distribution reach of the company to a larger number of customers
The highlight of the third phase was the concept of ldquoRedistribution Stockistrdquo ( RS ) who replaced the RWs The RS was required to provide the distribution units to the company salesman The RS financed his stocks and provided warehousing facilities to store them The RS also undertook demand stimulation activities on behalf of the company The second characteristic of this period we realized that the RS would be able to provide customer service only if he was serviced well This knowledge led to the establishment of the ldquo Company Depotsrdquo system This system helped in transshipment bulk breaking and as a stock point to minimize stock ndash outs at the RS level
In the recent past a significant change has been the replacement of the Company Depot by a system of third party Carrying and Forwarding Agents ( CampFAs ) The CampFAs act as buffer stock ndash points to ensure that stock ndash outs did not take place The CampFA system has also resulted in cost savings in terms of direct transportation and reduced time lag in delivery The most important benefit has been improved customer service to the RS
DISTRIBUTION AT VILLAGES ( RURAL MARKETS )
The company has brought all markets with populations of below 50000 under one rural sales organization
The team comprises an exclusive sales force and exclusive redistribution stockists
The team focuses on building superior availability of products
In rural India the network directly covers about 50000 villages reaching 250 million consumers through 6000 sub - stockists
DISTRIBUTION AT THE SUPERMARKETS
HUL has set up a full ndash scale sales organization for this channel to serve modern retailing outlets
Product tests and in ndash store sampling is provided to consumers
HARNESSING INFORMATION TECHNOLOGY
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
The objective is to make the product available at the right place and right time in the most cost effective manner
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
For this stockists have been connected through an Internet-based network called RS Net for online interaction
RS Net is part of Project Leap HULs end ndash to - end supply chain
PIONEERING NEW CHANNELS
HUL is simultaneously creating new channels designed on the same principal of holistic contact with customers
1) Project Shakti HULs partnership with Self Help Groups of rural women Started in 2001 Project Shakti has already been extended to about 50000 villages in 12 states - Andhra Pradesh Karnataka Gujarat and others
2) HINDUSTAN UNILEVER NETWORK ( HUN) it is the companyrsquos arm in the Direct Selling channel It represents a range of customized offerings in Home amp Personal Care and Foods
3) Out - Of -Home this deals in providing vending machines for hot beverages like tea coffee
4) Health and Beauty Services Lakme saloons provide specialized beauty services and solutions under the recognized authority of Lakme brand The Ayush Therapy Centers provide easy access to authentic Ayurvedic treatment and products
BUSINESS PRINCIPLES
People first
Employees people and products are more important at Hindustan Unilever Limited
than systems Systems and methods while necessary and valuable in running a complex
organization should remain managerial and operational aids but should not become ends
in themselves It is a question of priorities A strong orientation toward human beings
employees and executives is a decisive if not the decisive component of long-term
success
Quality products
Our focus is on products The ultimate justification for a company is its ability to offer
products that are appealing because of their quality convenience variety and price --
products that can stand their ground even in the face of fierce competition
Long-term view
HULmakes clear distinction between strategy and tactics It gives priority to the long-
range view Long-term thinking defuses many of the conflicts and contentions among
groups this applies to employment conditions and relations with employees as well as to
the conflicts and opposing interests of the trade and the industry Of course our ability to
focus on long-term considerations is only possible if the company is successful in the
struggle for short-term survival This is why HUL strives to maintain a satisfactory level
of profits every year
Uniformity
A very important concern at HUL has to do with uniformity how consistent HULrsquos
principles policies rules of conduct and strategies should be and to what extent they
should differ depending on the country subsidiary region branch or group of products
In general HUL tries to limit the uniformity of its policy to a requisite minimum
Diversification
HUL does not want to become either a conglomerate or a portfolio manager
HUListoperate only those businesses about which it has some special knowledge and
expertise HUL is a global company not a conglomerate hodgepodge We regard
acquisitions and efforts at diversification as logical ways to supplement our business but
only in the context of a carefully considered corporate marketing policy
Flexibility and simplicity
The publics sense of the power and size of a corporation is often inaccurate for a
companys power is limited by a host of factors including legislation competition
regulatory bodies and publicity From a business point of view it is desirable for
a firm to achieve the size best suited to a specific industry or mode of
production To be competitive internationally and make significant investments in
research and technology a larger company has an advantage From a strictly
organizational point of view flexible simple structures work best and excessively
large units should be avoided whenever possible In both respects HUL has a natural
advantage Although it is a big company it is spread out over many countries and
each of HULs factories has its own management and responsibility
Packaging
Manufacturing comprises all unit operations necessary to transform perishable raw
materials into finished products with the aim to make them safe and convenient
for the consumers The manufacturing activities of the HUL
respect natural resources by efficient use of raw materials and energy
minimize waste generation and emissions
ensure environmentally safe disposal of all waste which cannot be recycled
Regular assessments of processing practices are carried out These assessments
include
evaluation of individual plant performance with regard to operations which
have an impact on the environment
definition of targets for improvement
review of plant compliance with local government regulations company
environmental standards as well as results achieved in comparison with
targets for improvement
full investigation of incidents which may affect the environment
Information on developments in environmental protection technology and practices is
disseminated as required to ensure that all plants are using the most effective
environmental practices for their type of processing This applies also for co
packers
Marketing and distribution
Marketing is based on the principle of satisfying consumer needs This is the
foundation also for the environmental marketing approach of HUL
Environmental product claims in advertising promotional material and on
packaging are in accordance with legal requirements based on solid scientific
evidence and used in a serious and reasonable manner
Our aim is to minimize wastage in communication publicity and promotional
material in particular through more precise targeting of marketing activities
Consumer promotions and merchandising material such as consumer offers in store
promotions display material leaflets printed matter etc take environmental aspects
into account
This means due consideration of environmental impact in selecting both materials
and printing methods
In distribution energy efficient and pollution controlled methods are encouraged
wherever possible
Legislation and Regulations
It is the policy of the HUL to strictly comply with all laws and regulations
relevant to our activities We participate in discussions on food legislation and
regulations between international organizations government representatives industry
the scientific world and consumer associations We also apply this policy to
environment related matters
In doing so we cooperate with legislators through local industry associations in
order to promote laws and regulations in the field of environment which are
reasonable rational realistic applicable and enforceable We oppose unjustified bans
and any other discriminatory measures
35 BUSINESS CATEGORIES
HULrsquos purpose is to meet the everyday needs of people everywhere This vision has made HUL Indiarsquos largest Packaged Mass Consumption Goods Company with leadership in Home and Personal Care Products and Foods and BeveragesIt is the countryrsquos largest marketer of Soaps Detergents and Household Care productsIts expertise in Personal Products makes it the leader in Shampoos Skin Care Products Color Cosmetics Deodorants and Fragrances
In Foods and Beverages HUL remains the undisputed market leader in Tea Processed Coffee Branded Wheat Flour Tomato Products Ice Cream Jams and squashes
In New Ventures the new entrants are in Healthcare Confectioners and Network Marketing
HUL is also one of the countryrsquos biggest exporters and has earned the distinction of a Super Star Trading House Its Exports Division is a net foreign exchange earner Among the Exports are branded Soaps and Detergents Personal Products Tea amp Coffee Basmati Rice Castor Oil and its Derivatives
36 THE BRANDS
The formulation of branding strategies starts from the building a sustainable brand for the
company This is so as the consumers buy the brand not only for the intrinsic values
associated with it but also because of the promise that branding makes to the
consumerhellipthe promise of delivering values beyond expectation A framework is
suggested below for the formulation of a brand strategy-
1 Experiential marketing
The first component of branding strategy is the experiential marketing It is a well known
fact that the customers demand experiences instead of products or services This creates a
challenge to the organizations to find new ways to involve the customers in the value
chain so that they themselves can decide the product features and uniqueness that they
expect from the brand They want to know more about the details of the brand They
remove the shells and get into the core of the processes to understand the real value of the
brand Hence such a strategy should be framed that makes the consumers involvement
higher
2 Effective Branding
It is found that effective branding involves working on four important dimensions
namely
bull The Functional Dimension- The functional dimension concerns the perception of
benefit of the product or service associated with the brand
bull The Social Dimension- The Social Dimension concern the ability to create
identification with the group
bull The Spiritual Dimension- The Spiritual Dimension is the perception of global or
local responsibility
bull The Mental Dimension- The Mental Dimension is the ability to support the
individual mentally
3 Novel Brand Strategies
bull Customers Own the Brand- It should always be kept in mind that it is the consumers
who own the brand
bull Product Service- A sale should never be considered the ending of a transaction but the
beginning of a beautiful relationship Customer service basically creates a positive effect
on the minds of the customer and this positive influence on the mind of the consumer
makes them more open to new ideas and reduces their skeptic towards the brand
bull Buzz Marketing- The development in the technology used in the country has lead to
the increased importance paid to the concept of buzz marketing Branding increasingly
nowadays is moving into Internet-based applications
bull Religious Branding- since it is considered that religion has the power to bind people
and unify them under one common ideal an effective brand strategy must take into
account this powerful force which plays on the minds of the Indian consumers
4 Feedback and Improvements
It is very crucial to have the consumer participation In order to succeed in the long run it is crucial to allow the consumer participation at an intermediary stage of developing the product This will lead to creation of a better relationship between the company and its consumer
MARKETING STRATEGIES
Hindustan Unilever Limited has adopted a four pronged growth strategy -
1 Gunning the market with new products and brand extensions
2 Expansion of the distribution network to small towns for extensive
availability
3 Reduce prices and introduce smaller packages for products to
make them more affordable (a tool to enter price sensitive markets)
4 Focus on employ training and develop a positive attitude through
enhanced manpower development
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
RESEARCH DESIGN OF THE PROJECT
The research design adopted for this project is ldquo Descriptive Researchrdquo which provides an accurate snapshot of some aspect of market environment It helps in providing information about HUL and its products and services keeping in mind the changing market scenario Its features are
The objective of such a study is to answer the who what when where when and have of the subject under investigation
Descriptive studies are well ndash structured
This study tends to be rigid and its approach cannot be changed every now and then
23 MODES OF DATA COLLECTION amp SAMPLE SIZE
Data has been collected with the help of secondary sourcesSecondary data was collected personally by me which the company has furnished for the general public The secondary data was gathered with the help of various magazines newspapers journals brochures and also through internet For secondary sources no field work was employed
Magazines Newspapers Company Literature Websites
CHAPTER - 3
COMPANY PROFILE 31 Organisation Structure
32 Key People of HUL
33 Business Supports
34 Distribution Network
35 Business Categories
36 Brands
37 Financial Status of HUL
38 Problems Faced by HUL
31 ORGANIZATION STRUCTURE
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods (FMCG) Company It is present in Home amp Personal Care and Foods amp Beverages categories HUL and Group companies have about 41000 employees including 1550 managers
The fundamental principle determining the organization structure is to infuse speed and flexibility in decision making and implementation with empowered managers across the companyrsquos nationwide operations For this HUL is organized into self ndash sufficient profit centers supported by certain central functions and resources to leverage economies of scale wherever relevant
32 Key People Of HUL
The Board of Directors as repositories of the corporate powers act as a guardian to the Company as also the protectors of shareholderrsquos interest
This Apex body comprises of a Non- Executive Chairman four whole time Directors and five Independent Non ndash Executive Directors The Board of the Company represents the optimum mix of professionalism knowledge and experience
Mr Harish Manwani - CHAIRMAN
Mr Harish Manwani (55) assumed charge as NON ndash Executive Chairman of the company with effect from 1st july 2005
Mr Nitin Paranjpe - CEO and Managing Director
Mr Nitin Paranjpe (46) after obtaining degree in BE (Mechanical) and MBA in marketing joined the company as a management trainee in 1987
Mr RShridhar - Chief Financial Officer
Mr Shridhar Ramamurthy (45) is a Chartered Accountant (Gold Medalist) as well as Cost Accountant and Company Secretary in HUL
33 BUSINESS SUPPORTS
Hindustan Unilever Limited is regarded as one of Indiarsquos most admired companies
It is not only the brands and the people but it is also the support systems Its Research Center is the largest private sector industrial research laboratory of its kind in India HULrsquos enviable reach in the remote heartland makes its distribution web the largest of its kind in India
34 DISTRIBUTION NETWORK
Distribution systemrsquos focus to enable easy access to their brands touch consumers with a three ndash way convergence - of product availability brand communication and higher levels of brand experience
WHAT DITRIBUTION SYSTEM SHOULD DO
The most obvious function of providing the logistics support to get the companyrsquos product to the end customer Another established role is that of fina ncing The channel partners are expected to extend credit to the next level of customers Some channelmembers however also receive credit and the net credit extended is minimal
To meet the ever ndash changing needs of the consumer HUL has set up a distribution network that ensures availability of all its products in all outlets at all the times This includes maintaining favourable trade relations providing innovative incentives to retailers and organizing demand generation activities among a host of other things
Furthermore although the distribution system is common across most businesses each of the businesses has over the years fine ndash tuned the system to meet their objectives The differences therefore lie in the manner businesses use an existing distribution network and the channel players involved therein to improve their reach and service to their customers and end users For instance the distribution
model for detergents personal products and beverages are quite different from each other due to various factors
Similarly the success stories of urban markets cannot necessarily be replicated in rural markets
The evolution of HULrsquos distribution network
The evolution of HULrsquos distribution network The first place of the HUL distribution network had wholesalers placing bulk orders directly with the company Large retailers also placed direct orders which comprised almost 30 of the total orders collected
a) HULs products are distributed through a network of about 7000 redistribution stockists covering about one million retailoutlets
b) The general trade comprises grocery stores chemists wholesale kiosks and general stores
c) Hindustan Unilever provide tailor made services to each of its channel partners
d) HUL is using the point of purchase method for much higher level of direct contact through in ndash store facilitators sampling education and experience
The company salesman grouped all these orders and placed an indent with the Head Office Goods were sent to these markets with the company salesman as the consignee The salesman then collected and distributed the products to the respective wholesalers against cash payment and the money was remitted to the company
The focus of the second phase which spanned the decades of the 40s was to provide desired products and quality service to the companyrsquos customers In order to achieve this one wholesaler in each market was appointed as a ldquo Registered Wholesalerrdquo ( RW) a stock point for the companyrsquos products in that market The company salesman still covered the market canvassing for orders from the rest of the trade He would then distribute stocks from the RW through distribution units maintained by the company The RW system therefore increased the distribution reach of the company to a larger number of customers
The highlight of the third phase was the concept of ldquoRedistribution Stockistrdquo ( RS ) who replaced the RWs The RS was required to provide the distribution units to the company salesman The RS financed his stocks and provided warehousing facilities to store them The RS also undertook demand stimulation activities on behalf of the company The second characteristic of this period we realized that the RS would be able to provide customer service only if he was serviced well This knowledge led to the establishment of the ldquo Company Depotsrdquo system This system helped in transshipment bulk breaking and as a stock point to minimize stock ndash outs at the RS level
In the recent past a significant change has been the replacement of the Company Depot by a system of third party Carrying and Forwarding Agents ( CampFAs ) The CampFAs act as buffer stock ndash points to ensure that stock ndash outs did not take place The CampFA system has also resulted in cost savings in terms of direct transportation and reduced time lag in delivery The most important benefit has been improved customer service to the RS
DISTRIBUTION AT VILLAGES ( RURAL MARKETS )
The company has brought all markets with populations of below 50000 under one rural sales organization
The team comprises an exclusive sales force and exclusive redistribution stockists
The team focuses on building superior availability of products
In rural India the network directly covers about 50000 villages reaching 250 million consumers through 6000 sub - stockists
DISTRIBUTION AT THE SUPERMARKETS
HUL has set up a full ndash scale sales organization for this channel to serve modern retailing outlets
Product tests and in ndash store sampling is provided to consumers
HARNESSING INFORMATION TECHNOLOGY
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
The objective is to make the product available at the right place and right time in the most cost effective manner
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
For this stockists have been connected through an Internet-based network called RS Net for online interaction
RS Net is part of Project Leap HULs end ndash to - end supply chain
PIONEERING NEW CHANNELS
HUL is simultaneously creating new channels designed on the same principal of holistic contact with customers
1) Project Shakti HULs partnership with Self Help Groups of rural women Started in 2001 Project Shakti has already been extended to about 50000 villages in 12 states - Andhra Pradesh Karnataka Gujarat and others
2) HINDUSTAN UNILEVER NETWORK ( HUN) it is the companyrsquos arm in the Direct Selling channel It represents a range of customized offerings in Home amp Personal Care and Foods
3) Out - Of -Home this deals in providing vending machines for hot beverages like tea coffee
4) Health and Beauty Services Lakme saloons provide specialized beauty services and solutions under the recognized authority of Lakme brand The Ayush Therapy Centers provide easy access to authentic Ayurvedic treatment and products
BUSINESS PRINCIPLES
People first
Employees people and products are more important at Hindustan Unilever Limited
than systems Systems and methods while necessary and valuable in running a complex
organization should remain managerial and operational aids but should not become ends
in themselves It is a question of priorities A strong orientation toward human beings
employees and executives is a decisive if not the decisive component of long-term
success
Quality products
Our focus is on products The ultimate justification for a company is its ability to offer
products that are appealing because of their quality convenience variety and price --
products that can stand their ground even in the face of fierce competition
Long-term view
HULmakes clear distinction between strategy and tactics It gives priority to the long-
range view Long-term thinking defuses many of the conflicts and contentions among
groups this applies to employment conditions and relations with employees as well as to
the conflicts and opposing interests of the trade and the industry Of course our ability to
focus on long-term considerations is only possible if the company is successful in the
struggle for short-term survival This is why HUL strives to maintain a satisfactory level
of profits every year
Uniformity
A very important concern at HUL has to do with uniformity how consistent HULrsquos
principles policies rules of conduct and strategies should be and to what extent they
should differ depending on the country subsidiary region branch or group of products
In general HUL tries to limit the uniformity of its policy to a requisite minimum
Diversification
HUL does not want to become either a conglomerate or a portfolio manager
HUListoperate only those businesses about which it has some special knowledge and
expertise HUL is a global company not a conglomerate hodgepodge We regard
acquisitions and efforts at diversification as logical ways to supplement our business but
only in the context of a carefully considered corporate marketing policy
Flexibility and simplicity
The publics sense of the power and size of a corporation is often inaccurate for a
companys power is limited by a host of factors including legislation competition
regulatory bodies and publicity From a business point of view it is desirable for
a firm to achieve the size best suited to a specific industry or mode of
production To be competitive internationally and make significant investments in
research and technology a larger company has an advantage From a strictly
organizational point of view flexible simple structures work best and excessively
large units should be avoided whenever possible In both respects HUL has a natural
advantage Although it is a big company it is spread out over many countries and
each of HULs factories has its own management and responsibility
Packaging
Manufacturing comprises all unit operations necessary to transform perishable raw
materials into finished products with the aim to make them safe and convenient
for the consumers The manufacturing activities of the HUL
respect natural resources by efficient use of raw materials and energy
minimize waste generation and emissions
ensure environmentally safe disposal of all waste which cannot be recycled
Regular assessments of processing practices are carried out These assessments
include
evaluation of individual plant performance with regard to operations which
have an impact on the environment
definition of targets for improvement
review of plant compliance with local government regulations company
environmental standards as well as results achieved in comparison with
targets for improvement
full investigation of incidents which may affect the environment
Information on developments in environmental protection technology and practices is
disseminated as required to ensure that all plants are using the most effective
environmental practices for their type of processing This applies also for co
packers
Marketing and distribution
Marketing is based on the principle of satisfying consumer needs This is the
foundation also for the environmental marketing approach of HUL
Environmental product claims in advertising promotional material and on
packaging are in accordance with legal requirements based on solid scientific
evidence and used in a serious and reasonable manner
Our aim is to minimize wastage in communication publicity and promotional
material in particular through more precise targeting of marketing activities
Consumer promotions and merchandising material such as consumer offers in store
promotions display material leaflets printed matter etc take environmental aspects
into account
This means due consideration of environmental impact in selecting both materials
and printing methods
In distribution energy efficient and pollution controlled methods are encouraged
wherever possible
Legislation and Regulations
It is the policy of the HUL to strictly comply with all laws and regulations
relevant to our activities We participate in discussions on food legislation and
regulations between international organizations government representatives industry
the scientific world and consumer associations We also apply this policy to
environment related matters
In doing so we cooperate with legislators through local industry associations in
order to promote laws and regulations in the field of environment which are
reasonable rational realistic applicable and enforceable We oppose unjustified bans
and any other discriminatory measures
35 BUSINESS CATEGORIES
HULrsquos purpose is to meet the everyday needs of people everywhere This vision has made HUL Indiarsquos largest Packaged Mass Consumption Goods Company with leadership in Home and Personal Care Products and Foods and BeveragesIt is the countryrsquos largest marketer of Soaps Detergents and Household Care productsIts expertise in Personal Products makes it the leader in Shampoos Skin Care Products Color Cosmetics Deodorants and Fragrances
In Foods and Beverages HUL remains the undisputed market leader in Tea Processed Coffee Branded Wheat Flour Tomato Products Ice Cream Jams and squashes
In New Ventures the new entrants are in Healthcare Confectioners and Network Marketing
HUL is also one of the countryrsquos biggest exporters and has earned the distinction of a Super Star Trading House Its Exports Division is a net foreign exchange earner Among the Exports are branded Soaps and Detergents Personal Products Tea amp Coffee Basmati Rice Castor Oil and its Derivatives
36 THE BRANDS
The formulation of branding strategies starts from the building a sustainable brand for the
company This is so as the consumers buy the brand not only for the intrinsic values
associated with it but also because of the promise that branding makes to the
consumerhellipthe promise of delivering values beyond expectation A framework is
suggested below for the formulation of a brand strategy-
1 Experiential marketing
The first component of branding strategy is the experiential marketing It is a well known
fact that the customers demand experiences instead of products or services This creates a
challenge to the organizations to find new ways to involve the customers in the value
chain so that they themselves can decide the product features and uniqueness that they
expect from the brand They want to know more about the details of the brand They
remove the shells and get into the core of the processes to understand the real value of the
brand Hence such a strategy should be framed that makes the consumers involvement
higher
2 Effective Branding
It is found that effective branding involves working on four important dimensions
namely
bull The Functional Dimension- The functional dimension concerns the perception of
benefit of the product or service associated with the brand
bull The Social Dimension- The Social Dimension concern the ability to create
identification with the group
bull The Spiritual Dimension- The Spiritual Dimension is the perception of global or
local responsibility
bull The Mental Dimension- The Mental Dimension is the ability to support the
individual mentally
3 Novel Brand Strategies
bull Customers Own the Brand- It should always be kept in mind that it is the consumers
who own the brand
bull Product Service- A sale should never be considered the ending of a transaction but the
beginning of a beautiful relationship Customer service basically creates a positive effect
on the minds of the customer and this positive influence on the mind of the consumer
makes them more open to new ideas and reduces their skeptic towards the brand
bull Buzz Marketing- The development in the technology used in the country has lead to
the increased importance paid to the concept of buzz marketing Branding increasingly
nowadays is moving into Internet-based applications
bull Religious Branding- since it is considered that religion has the power to bind people
and unify them under one common ideal an effective brand strategy must take into
account this powerful force which plays on the minds of the Indian consumers
4 Feedback and Improvements
It is very crucial to have the consumer participation In order to succeed in the long run it is crucial to allow the consumer participation at an intermediary stage of developing the product This will lead to creation of a better relationship between the company and its consumer
MARKETING STRATEGIES
Hindustan Unilever Limited has adopted a four pronged growth strategy -
1 Gunning the market with new products and brand extensions
2 Expansion of the distribution network to small towns for extensive
availability
3 Reduce prices and introduce smaller packages for products to
make them more affordable (a tool to enter price sensitive markets)
4 Focus on employ training and develop a positive attitude through
enhanced manpower development
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
CHAPTER - 3
COMPANY PROFILE 31 Organisation Structure
32 Key People of HUL
33 Business Supports
34 Distribution Network
35 Business Categories
36 Brands
37 Financial Status of HUL
38 Problems Faced by HUL
31 ORGANIZATION STRUCTURE
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods (FMCG) Company It is present in Home amp Personal Care and Foods amp Beverages categories HUL and Group companies have about 41000 employees including 1550 managers
The fundamental principle determining the organization structure is to infuse speed and flexibility in decision making and implementation with empowered managers across the companyrsquos nationwide operations For this HUL is organized into self ndash sufficient profit centers supported by certain central functions and resources to leverage economies of scale wherever relevant
32 Key People Of HUL
The Board of Directors as repositories of the corporate powers act as a guardian to the Company as also the protectors of shareholderrsquos interest
This Apex body comprises of a Non- Executive Chairman four whole time Directors and five Independent Non ndash Executive Directors The Board of the Company represents the optimum mix of professionalism knowledge and experience
Mr Harish Manwani - CHAIRMAN
Mr Harish Manwani (55) assumed charge as NON ndash Executive Chairman of the company with effect from 1st july 2005
Mr Nitin Paranjpe - CEO and Managing Director
Mr Nitin Paranjpe (46) after obtaining degree in BE (Mechanical) and MBA in marketing joined the company as a management trainee in 1987
Mr RShridhar - Chief Financial Officer
Mr Shridhar Ramamurthy (45) is a Chartered Accountant (Gold Medalist) as well as Cost Accountant and Company Secretary in HUL
33 BUSINESS SUPPORTS
Hindustan Unilever Limited is regarded as one of Indiarsquos most admired companies
It is not only the brands and the people but it is also the support systems Its Research Center is the largest private sector industrial research laboratory of its kind in India HULrsquos enviable reach in the remote heartland makes its distribution web the largest of its kind in India
34 DISTRIBUTION NETWORK
Distribution systemrsquos focus to enable easy access to their brands touch consumers with a three ndash way convergence - of product availability brand communication and higher levels of brand experience
WHAT DITRIBUTION SYSTEM SHOULD DO
The most obvious function of providing the logistics support to get the companyrsquos product to the end customer Another established role is that of fina ncing The channel partners are expected to extend credit to the next level of customers Some channelmembers however also receive credit and the net credit extended is minimal
To meet the ever ndash changing needs of the consumer HUL has set up a distribution network that ensures availability of all its products in all outlets at all the times This includes maintaining favourable trade relations providing innovative incentives to retailers and organizing demand generation activities among a host of other things
Furthermore although the distribution system is common across most businesses each of the businesses has over the years fine ndash tuned the system to meet their objectives The differences therefore lie in the manner businesses use an existing distribution network and the channel players involved therein to improve their reach and service to their customers and end users For instance the distribution
model for detergents personal products and beverages are quite different from each other due to various factors
Similarly the success stories of urban markets cannot necessarily be replicated in rural markets
The evolution of HULrsquos distribution network
The evolution of HULrsquos distribution network The first place of the HUL distribution network had wholesalers placing bulk orders directly with the company Large retailers also placed direct orders which comprised almost 30 of the total orders collected
a) HULs products are distributed through a network of about 7000 redistribution stockists covering about one million retailoutlets
b) The general trade comprises grocery stores chemists wholesale kiosks and general stores
c) Hindustan Unilever provide tailor made services to each of its channel partners
d) HUL is using the point of purchase method for much higher level of direct contact through in ndash store facilitators sampling education and experience
The company salesman grouped all these orders and placed an indent with the Head Office Goods were sent to these markets with the company salesman as the consignee The salesman then collected and distributed the products to the respective wholesalers against cash payment and the money was remitted to the company
The focus of the second phase which spanned the decades of the 40s was to provide desired products and quality service to the companyrsquos customers In order to achieve this one wholesaler in each market was appointed as a ldquo Registered Wholesalerrdquo ( RW) a stock point for the companyrsquos products in that market The company salesman still covered the market canvassing for orders from the rest of the trade He would then distribute stocks from the RW through distribution units maintained by the company The RW system therefore increased the distribution reach of the company to a larger number of customers
The highlight of the third phase was the concept of ldquoRedistribution Stockistrdquo ( RS ) who replaced the RWs The RS was required to provide the distribution units to the company salesman The RS financed his stocks and provided warehousing facilities to store them The RS also undertook demand stimulation activities on behalf of the company The second characteristic of this period we realized that the RS would be able to provide customer service only if he was serviced well This knowledge led to the establishment of the ldquo Company Depotsrdquo system This system helped in transshipment bulk breaking and as a stock point to minimize stock ndash outs at the RS level
In the recent past a significant change has been the replacement of the Company Depot by a system of third party Carrying and Forwarding Agents ( CampFAs ) The CampFAs act as buffer stock ndash points to ensure that stock ndash outs did not take place The CampFA system has also resulted in cost savings in terms of direct transportation and reduced time lag in delivery The most important benefit has been improved customer service to the RS
DISTRIBUTION AT VILLAGES ( RURAL MARKETS )
The company has brought all markets with populations of below 50000 under one rural sales organization
The team comprises an exclusive sales force and exclusive redistribution stockists
The team focuses on building superior availability of products
In rural India the network directly covers about 50000 villages reaching 250 million consumers through 6000 sub - stockists
DISTRIBUTION AT THE SUPERMARKETS
HUL has set up a full ndash scale sales organization for this channel to serve modern retailing outlets
Product tests and in ndash store sampling is provided to consumers
HARNESSING INFORMATION TECHNOLOGY
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
The objective is to make the product available at the right place and right time in the most cost effective manner
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
For this stockists have been connected through an Internet-based network called RS Net for online interaction
RS Net is part of Project Leap HULs end ndash to - end supply chain
PIONEERING NEW CHANNELS
HUL is simultaneously creating new channels designed on the same principal of holistic contact with customers
1) Project Shakti HULs partnership with Self Help Groups of rural women Started in 2001 Project Shakti has already been extended to about 50000 villages in 12 states - Andhra Pradesh Karnataka Gujarat and others
2) HINDUSTAN UNILEVER NETWORK ( HUN) it is the companyrsquos arm in the Direct Selling channel It represents a range of customized offerings in Home amp Personal Care and Foods
3) Out - Of -Home this deals in providing vending machines for hot beverages like tea coffee
4) Health and Beauty Services Lakme saloons provide specialized beauty services and solutions under the recognized authority of Lakme brand The Ayush Therapy Centers provide easy access to authentic Ayurvedic treatment and products
BUSINESS PRINCIPLES
People first
Employees people and products are more important at Hindustan Unilever Limited
than systems Systems and methods while necessary and valuable in running a complex
organization should remain managerial and operational aids but should not become ends
in themselves It is a question of priorities A strong orientation toward human beings
employees and executives is a decisive if not the decisive component of long-term
success
Quality products
Our focus is on products The ultimate justification for a company is its ability to offer
products that are appealing because of their quality convenience variety and price --
products that can stand their ground even in the face of fierce competition
Long-term view
HULmakes clear distinction between strategy and tactics It gives priority to the long-
range view Long-term thinking defuses many of the conflicts and contentions among
groups this applies to employment conditions and relations with employees as well as to
the conflicts and opposing interests of the trade and the industry Of course our ability to
focus on long-term considerations is only possible if the company is successful in the
struggle for short-term survival This is why HUL strives to maintain a satisfactory level
of profits every year
Uniformity
A very important concern at HUL has to do with uniformity how consistent HULrsquos
principles policies rules of conduct and strategies should be and to what extent they
should differ depending on the country subsidiary region branch or group of products
In general HUL tries to limit the uniformity of its policy to a requisite minimum
Diversification
HUL does not want to become either a conglomerate or a portfolio manager
HUListoperate only those businesses about which it has some special knowledge and
expertise HUL is a global company not a conglomerate hodgepodge We regard
acquisitions and efforts at diversification as logical ways to supplement our business but
only in the context of a carefully considered corporate marketing policy
Flexibility and simplicity
The publics sense of the power and size of a corporation is often inaccurate for a
companys power is limited by a host of factors including legislation competition
regulatory bodies and publicity From a business point of view it is desirable for
a firm to achieve the size best suited to a specific industry or mode of
production To be competitive internationally and make significant investments in
research and technology a larger company has an advantage From a strictly
organizational point of view flexible simple structures work best and excessively
large units should be avoided whenever possible In both respects HUL has a natural
advantage Although it is a big company it is spread out over many countries and
each of HULs factories has its own management and responsibility
Packaging
Manufacturing comprises all unit operations necessary to transform perishable raw
materials into finished products with the aim to make them safe and convenient
for the consumers The manufacturing activities of the HUL
respect natural resources by efficient use of raw materials and energy
minimize waste generation and emissions
ensure environmentally safe disposal of all waste which cannot be recycled
Regular assessments of processing practices are carried out These assessments
include
evaluation of individual plant performance with regard to operations which
have an impact on the environment
definition of targets for improvement
review of plant compliance with local government regulations company
environmental standards as well as results achieved in comparison with
targets for improvement
full investigation of incidents which may affect the environment
Information on developments in environmental protection technology and practices is
disseminated as required to ensure that all plants are using the most effective
environmental practices for their type of processing This applies also for co
packers
Marketing and distribution
Marketing is based on the principle of satisfying consumer needs This is the
foundation also for the environmental marketing approach of HUL
Environmental product claims in advertising promotional material and on
packaging are in accordance with legal requirements based on solid scientific
evidence and used in a serious and reasonable manner
Our aim is to minimize wastage in communication publicity and promotional
material in particular through more precise targeting of marketing activities
Consumer promotions and merchandising material such as consumer offers in store
promotions display material leaflets printed matter etc take environmental aspects
into account
This means due consideration of environmental impact in selecting both materials
and printing methods
In distribution energy efficient and pollution controlled methods are encouraged
wherever possible
Legislation and Regulations
It is the policy of the HUL to strictly comply with all laws and regulations
relevant to our activities We participate in discussions on food legislation and
regulations between international organizations government representatives industry
the scientific world and consumer associations We also apply this policy to
environment related matters
In doing so we cooperate with legislators through local industry associations in
order to promote laws and regulations in the field of environment which are
reasonable rational realistic applicable and enforceable We oppose unjustified bans
and any other discriminatory measures
35 BUSINESS CATEGORIES
HULrsquos purpose is to meet the everyday needs of people everywhere This vision has made HUL Indiarsquos largest Packaged Mass Consumption Goods Company with leadership in Home and Personal Care Products and Foods and BeveragesIt is the countryrsquos largest marketer of Soaps Detergents and Household Care productsIts expertise in Personal Products makes it the leader in Shampoos Skin Care Products Color Cosmetics Deodorants and Fragrances
In Foods and Beverages HUL remains the undisputed market leader in Tea Processed Coffee Branded Wheat Flour Tomato Products Ice Cream Jams and squashes
In New Ventures the new entrants are in Healthcare Confectioners and Network Marketing
HUL is also one of the countryrsquos biggest exporters and has earned the distinction of a Super Star Trading House Its Exports Division is a net foreign exchange earner Among the Exports are branded Soaps and Detergents Personal Products Tea amp Coffee Basmati Rice Castor Oil and its Derivatives
36 THE BRANDS
The formulation of branding strategies starts from the building a sustainable brand for the
company This is so as the consumers buy the brand not only for the intrinsic values
associated with it but also because of the promise that branding makes to the
consumerhellipthe promise of delivering values beyond expectation A framework is
suggested below for the formulation of a brand strategy-
1 Experiential marketing
The first component of branding strategy is the experiential marketing It is a well known
fact that the customers demand experiences instead of products or services This creates a
challenge to the organizations to find new ways to involve the customers in the value
chain so that they themselves can decide the product features and uniqueness that they
expect from the brand They want to know more about the details of the brand They
remove the shells and get into the core of the processes to understand the real value of the
brand Hence such a strategy should be framed that makes the consumers involvement
higher
2 Effective Branding
It is found that effective branding involves working on four important dimensions
namely
bull The Functional Dimension- The functional dimension concerns the perception of
benefit of the product or service associated with the brand
bull The Social Dimension- The Social Dimension concern the ability to create
identification with the group
bull The Spiritual Dimension- The Spiritual Dimension is the perception of global or
local responsibility
bull The Mental Dimension- The Mental Dimension is the ability to support the
individual mentally
3 Novel Brand Strategies
bull Customers Own the Brand- It should always be kept in mind that it is the consumers
who own the brand
bull Product Service- A sale should never be considered the ending of a transaction but the
beginning of a beautiful relationship Customer service basically creates a positive effect
on the minds of the customer and this positive influence on the mind of the consumer
makes them more open to new ideas and reduces their skeptic towards the brand
bull Buzz Marketing- The development in the technology used in the country has lead to
the increased importance paid to the concept of buzz marketing Branding increasingly
nowadays is moving into Internet-based applications
bull Religious Branding- since it is considered that religion has the power to bind people
and unify them under one common ideal an effective brand strategy must take into
account this powerful force which plays on the minds of the Indian consumers
4 Feedback and Improvements
It is very crucial to have the consumer participation In order to succeed in the long run it is crucial to allow the consumer participation at an intermediary stage of developing the product This will lead to creation of a better relationship between the company and its consumer
MARKETING STRATEGIES
Hindustan Unilever Limited has adopted a four pronged growth strategy -
1 Gunning the market with new products and brand extensions
2 Expansion of the distribution network to small towns for extensive
availability
3 Reduce prices and introduce smaller packages for products to
make them more affordable (a tool to enter price sensitive markets)
4 Focus on employ training and develop a positive attitude through
enhanced manpower development
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
31 ORGANIZATION STRUCTURE
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods (FMCG) Company It is present in Home amp Personal Care and Foods amp Beverages categories HUL and Group companies have about 41000 employees including 1550 managers
The fundamental principle determining the organization structure is to infuse speed and flexibility in decision making and implementation with empowered managers across the companyrsquos nationwide operations For this HUL is organized into self ndash sufficient profit centers supported by certain central functions and resources to leverage economies of scale wherever relevant
32 Key People Of HUL
The Board of Directors as repositories of the corporate powers act as a guardian to the Company as also the protectors of shareholderrsquos interest
This Apex body comprises of a Non- Executive Chairman four whole time Directors and five Independent Non ndash Executive Directors The Board of the Company represents the optimum mix of professionalism knowledge and experience
Mr Harish Manwani - CHAIRMAN
Mr Harish Manwani (55) assumed charge as NON ndash Executive Chairman of the company with effect from 1st july 2005
Mr Nitin Paranjpe - CEO and Managing Director
Mr Nitin Paranjpe (46) after obtaining degree in BE (Mechanical) and MBA in marketing joined the company as a management trainee in 1987
Mr RShridhar - Chief Financial Officer
Mr Shridhar Ramamurthy (45) is a Chartered Accountant (Gold Medalist) as well as Cost Accountant and Company Secretary in HUL
33 BUSINESS SUPPORTS
Hindustan Unilever Limited is regarded as one of Indiarsquos most admired companies
It is not only the brands and the people but it is also the support systems Its Research Center is the largest private sector industrial research laboratory of its kind in India HULrsquos enviable reach in the remote heartland makes its distribution web the largest of its kind in India
34 DISTRIBUTION NETWORK
Distribution systemrsquos focus to enable easy access to their brands touch consumers with a three ndash way convergence - of product availability brand communication and higher levels of brand experience
WHAT DITRIBUTION SYSTEM SHOULD DO
The most obvious function of providing the logistics support to get the companyrsquos product to the end customer Another established role is that of fina ncing The channel partners are expected to extend credit to the next level of customers Some channelmembers however also receive credit and the net credit extended is minimal
To meet the ever ndash changing needs of the consumer HUL has set up a distribution network that ensures availability of all its products in all outlets at all the times This includes maintaining favourable trade relations providing innovative incentives to retailers and organizing demand generation activities among a host of other things
Furthermore although the distribution system is common across most businesses each of the businesses has over the years fine ndash tuned the system to meet their objectives The differences therefore lie in the manner businesses use an existing distribution network and the channel players involved therein to improve their reach and service to their customers and end users For instance the distribution
model for detergents personal products and beverages are quite different from each other due to various factors
Similarly the success stories of urban markets cannot necessarily be replicated in rural markets
The evolution of HULrsquos distribution network
The evolution of HULrsquos distribution network The first place of the HUL distribution network had wholesalers placing bulk orders directly with the company Large retailers also placed direct orders which comprised almost 30 of the total orders collected
a) HULs products are distributed through a network of about 7000 redistribution stockists covering about one million retailoutlets
b) The general trade comprises grocery stores chemists wholesale kiosks and general stores
c) Hindustan Unilever provide tailor made services to each of its channel partners
d) HUL is using the point of purchase method for much higher level of direct contact through in ndash store facilitators sampling education and experience
The company salesman grouped all these orders and placed an indent with the Head Office Goods were sent to these markets with the company salesman as the consignee The salesman then collected and distributed the products to the respective wholesalers against cash payment and the money was remitted to the company
The focus of the second phase which spanned the decades of the 40s was to provide desired products and quality service to the companyrsquos customers In order to achieve this one wholesaler in each market was appointed as a ldquo Registered Wholesalerrdquo ( RW) a stock point for the companyrsquos products in that market The company salesman still covered the market canvassing for orders from the rest of the trade He would then distribute stocks from the RW through distribution units maintained by the company The RW system therefore increased the distribution reach of the company to a larger number of customers
The highlight of the third phase was the concept of ldquoRedistribution Stockistrdquo ( RS ) who replaced the RWs The RS was required to provide the distribution units to the company salesman The RS financed his stocks and provided warehousing facilities to store them The RS also undertook demand stimulation activities on behalf of the company The second characteristic of this period we realized that the RS would be able to provide customer service only if he was serviced well This knowledge led to the establishment of the ldquo Company Depotsrdquo system This system helped in transshipment bulk breaking and as a stock point to minimize stock ndash outs at the RS level
In the recent past a significant change has been the replacement of the Company Depot by a system of third party Carrying and Forwarding Agents ( CampFAs ) The CampFAs act as buffer stock ndash points to ensure that stock ndash outs did not take place The CampFA system has also resulted in cost savings in terms of direct transportation and reduced time lag in delivery The most important benefit has been improved customer service to the RS
DISTRIBUTION AT VILLAGES ( RURAL MARKETS )
The company has brought all markets with populations of below 50000 under one rural sales organization
The team comprises an exclusive sales force and exclusive redistribution stockists
The team focuses on building superior availability of products
In rural India the network directly covers about 50000 villages reaching 250 million consumers through 6000 sub - stockists
DISTRIBUTION AT THE SUPERMARKETS
HUL has set up a full ndash scale sales organization for this channel to serve modern retailing outlets
Product tests and in ndash store sampling is provided to consumers
HARNESSING INFORMATION TECHNOLOGY
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
The objective is to make the product available at the right place and right time in the most cost effective manner
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
For this stockists have been connected through an Internet-based network called RS Net for online interaction
RS Net is part of Project Leap HULs end ndash to - end supply chain
PIONEERING NEW CHANNELS
HUL is simultaneously creating new channels designed on the same principal of holistic contact with customers
1) Project Shakti HULs partnership with Self Help Groups of rural women Started in 2001 Project Shakti has already been extended to about 50000 villages in 12 states - Andhra Pradesh Karnataka Gujarat and others
2) HINDUSTAN UNILEVER NETWORK ( HUN) it is the companyrsquos arm in the Direct Selling channel It represents a range of customized offerings in Home amp Personal Care and Foods
3) Out - Of -Home this deals in providing vending machines for hot beverages like tea coffee
4) Health and Beauty Services Lakme saloons provide specialized beauty services and solutions under the recognized authority of Lakme brand The Ayush Therapy Centers provide easy access to authentic Ayurvedic treatment and products
BUSINESS PRINCIPLES
People first
Employees people and products are more important at Hindustan Unilever Limited
than systems Systems and methods while necessary and valuable in running a complex
organization should remain managerial and operational aids but should not become ends
in themselves It is a question of priorities A strong orientation toward human beings
employees and executives is a decisive if not the decisive component of long-term
success
Quality products
Our focus is on products The ultimate justification for a company is its ability to offer
products that are appealing because of their quality convenience variety and price --
products that can stand their ground even in the face of fierce competition
Long-term view
HULmakes clear distinction between strategy and tactics It gives priority to the long-
range view Long-term thinking defuses many of the conflicts and contentions among
groups this applies to employment conditions and relations with employees as well as to
the conflicts and opposing interests of the trade and the industry Of course our ability to
focus on long-term considerations is only possible if the company is successful in the
struggle for short-term survival This is why HUL strives to maintain a satisfactory level
of profits every year
Uniformity
A very important concern at HUL has to do with uniformity how consistent HULrsquos
principles policies rules of conduct and strategies should be and to what extent they
should differ depending on the country subsidiary region branch or group of products
In general HUL tries to limit the uniformity of its policy to a requisite minimum
Diversification
HUL does not want to become either a conglomerate or a portfolio manager
HUListoperate only those businesses about which it has some special knowledge and
expertise HUL is a global company not a conglomerate hodgepodge We regard
acquisitions and efforts at diversification as logical ways to supplement our business but
only in the context of a carefully considered corporate marketing policy
Flexibility and simplicity
The publics sense of the power and size of a corporation is often inaccurate for a
companys power is limited by a host of factors including legislation competition
regulatory bodies and publicity From a business point of view it is desirable for
a firm to achieve the size best suited to a specific industry or mode of
production To be competitive internationally and make significant investments in
research and technology a larger company has an advantage From a strictly
organizational point of view flexible simple structures work best and excessively
large units should be avoided whenever possible In both respects HUL has a natural
advantage Although it is a big company it is spread out over many countries and
each of HULs factories has its own management and responsibility
Packaging
Manufacturing comprises all unit operations necessary to transform perishable raw
materials into finished products with the aim to make them safe and convenient
for the consumers The manufacturing activities of the HUL
respect natural resources by efficient use of raw materials and energy
minimize waste generation and emissions
ensure environmentally safe disposal of all waste which cannot be recycled
Regular assessments of processing practices are carried out These assessments
include
evaluation of individual plant performance with regard to operations which
have an impact on the environment
definition of targets for improvement
review of plant compliance with local government regulations company
environmental standards as well as results achieved in comparison with
targets for improvement
full investigation of incidents which may affect the environment
Information on developments in environmental protection technology and practices is
disseminated as required to ensure that all plants are using the most effective
environmental practices for their type of processing This applies also for co
packers
Marketing and distribution
Marketing is based on the principle of satisfying consumer needs This is the
foundation also for the environmental marketing approach of HUL
Environmental product claims in advertising promotional material and on
packaging are in accordance with legal requirements based on solid scientific
evidence and used in a serious and reasonable manner
Our aim is to minimize wastage in communication publicity and promotional
material in particular through more precise targeting of marketing activities
Consumer promotions and merchandising material such as consumer offers in store
promotions display material leaflets printed matter etc take environmental aspects
into account
This means due consideration of environmental impact in selecting both materials
and printing methods
In distribution energy efficient and pollution controlled methods are encouraged
wherever possible
Legislation and Regulations
It is the policy of the HUL to strictly comply with all laws and regulations
relevant to our activities We participate in discussions on food legislation and
regulations between international organizations government representatives industry
the scientific world and consumer associations We also apply this policy to
environment related matters
In doing so we cooperate with legislators through local industry associations in
order to promote laws and regulations in the field of environment which are
reasonable rational realistic applicable and enforceable We oppose unjustified bans
and any other discriminatory measures
35 BUSINESS CATEGORIES
HULrsquos purpose is to meet the everyday needs of people everywhere This vision has made HUL Indiarsquos largest Packaged Mass Consumption Goods Company with leadership in Home and Personal Care Products and Foods and BeveragesIt is the countryrsquos largest marketer of Soaps Detergents and Household Care productsIts expertise in Personal Products makes it the leader in Shampoos Skin Care Products Color Cosmetics Deodorants and Fragrances
In Foods and Beverages HUL remains the undisputed market leader in Tea Processed Coffee Branded Wheat Flour Tomato Products Ice Cream Jams and squashes
In New Ventures the new entrants are in Healthcare Confectioners and Network Marketing
HUL is also one of the countryrsquos biggest exporters and has earned the distinction of a Super Star Trading House Its Exports Division is a net foreign exchange earner Among the Exports are branded Soaps and Detergents Personal Products Tea amp Coffee Basmati Rice Castor Oil and its Derivatives
36 THE BRANDS
The formulation of branding strategies starts from the building a sustainable brand for the
company This is so as the consumers buy the brand not only for the intrinsic values
associated with it but also because of the promise that branding makes to the
consumerhellipthe promise of delivering values beyond expectation A framework is
suggested below for the formulation of a brand strategy-
1 Experiential marketing
The first component of branding strategy is the experiential marketing It is a well known
fact that the customers demand experiences instead of products or services This creates a
challenge to the organizations to find new ways to involve the customers in the value
chain so that they themselves can decide the product features and uniqueness that they
expect from the brand They want to know more about the details of the brand They
remove the shells and get into the core of the processes to understand the real value of the
brand Hence such a strategy should be framed that makes the consumers involvement
higher
2 Effective Branding
It is found that effective branding involves working on four important dimensions
namely
bull The Functional Dimension- The functional dimension concerns the perception of
benefit of the product or service associated with the brand
bull The Social Dimension- The Social Dimension concern the ability to create
identification with the group
bull The Spiritual Dimension- The Spiritual Dimension is the perception of global or
local responsibility
bull The Mental Dimension- The Mental Dimension is the ability to support the
individual mentally
3 Novel Brand Strategies
bull Customers Own the Brand- It should always be kept in mind that it is the consumers
who own the brand
bull Product Service- A sale should never be considered the ending of a transaction but the
beginning of a beautiful relationship Customer service basically creates a positive effect
on the minds of the customer and this positive influence on the mind of the consumer
makes them more open to new ideas and reduces their skeptic towards the brand
bull Buzz Marketing- The development in the technology used in the country has lead to
the increased importance paid to the concept of buzz marketing Branding increasingly
nowadays is moving into Internet-based applications
bull Religious Branding- since it is considered that religion has the power to bind people
and unify them under one common ideal an effective brand strategy must take into
account this powerful force which plays on the minds of the Indian consumers
4 Feedback and Improvements
It is very crucial to have the consumer participation In order to succeed in the long run it is crucial to allow the consumer participation at an intermediary stage of developing the product This will lead to creation of a better relationship between the company and its consumer
MARKETING STRATEGIES
Hindustan Unilever Limited has adopted a four pronged growth strategy -
1 Gunning the market with new products and brand extensions
2 Expansion of the distribution network to small towns for extensive
availability
3 Reduce prices and introduce smaller packages for products to
make them more affordable (a tool to enter price sensitive markets)
4 Focus on employ training and develop a positive attitude through
enhanced manpower development
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
Mr Shridhar Ramamurthy (45) is a Chartered Accountant (Gold Medalist) as well as Cost Accountant and Company Secretary in HUL
33 BUSINESS SUPPORTS
Hindustan Unilever Limited is regarded as one of Indiarsquos most admired companies
It is not only the brands and the people but it is also the support systems Its Research Center is the largest private sector industrial research laboratory of its kind in India HULrsquos enviable reach in the remote heartland makes its distribution web the largest of its kind in India
34 DISTRIBUTION NETWORK
Distribution systemrsquos focus to enable easy access to their brands touch consumers with a three ndash way convergence - of product availability brand communication and higher levels of brand experience
WHAT DITRIBUTION SYSTEM SHOULD DO
The most obvious function of providing the logistics support to get the companyrsquos product to the end customer Another established role is that of fina ncing The channel partners are expected to extend credit to the next level of customers Some channelmembers however also receive credit and the net credit extended is minimal
To meet the ever ndash changing needs of the consumer HUL has set up a distribution network that ensures availability of all its products in all outlets at all the times This includes maintaining favourable trade relations providing innovative incentives to retailers and organizing demand generation activities among a host of other things
Furthermore although the distribution system is common across most businesses each of the businesses has over the years fine ndash tuned the system to meet their objectives The differences therefore lie in the manner businesses use an existing distribution network and the channel players involved therein to improve their reach and service to their customers and end users For instance the distribution
model for detergents personal products and beverages are quite different from each other due to various factors
Similarly the success stories of urban markets cannot necessarily be replicated in rural markets
The evolution of HULrsquos distribution network
The evolution of HULrsquos distribution network The first place of the HUL distribution network had wholesalers placing bulk orders directly with the company Large retailers also placed direct orders which comprised almost 30 of the total orders collected
a) HULs products are distributed through a network of about 7000 redistribution stockists covering about one million retailoutlets
b) The general trade comprises grocery stores chemists wholesale kiosks and general stores
c) Hindustan Unilever provide tailor made services to each of its channel partners
d) HUL is using the point of purchase method for much higher level of direct contact through in ndash store facilitators sampling education and experience
The company salesman grouped all these orders and placed an indent with the Head Office Goods were sent to these markets with the company salesman as the consignee The salesman then collected and distributed the products to the respective wholesalers against cash payment and the money was remitted to the company
The focus of the second phase which spanned the decades of the 40s was to provide desired products and quality service to the companyrsquos customers In order to achieve this one wholesaler in each market was appointed as a ldquo Registered Wholesalerrdquo ( RW) a stock point for the companyrsquos products in that market The company salesman still covered the market canvassing for orders from the rest of the trade He would then distribute stocks from the RW through distribution units maintained by the company The RW system therefore increased the distribution reach of the company to a larger number of customers
The highlight of the third phase was the concept of ldquoRedistribution Stockistrdquo ( RS ) who replaced the RWs The RS was required to provide the distribution units to the company salesman The RS financed his stocks and provided warehousing facilities to store them The RS also undertook demand stimulation activities on behalf of the company The second characteristic of this period we realized that the RS would be able to provide customer service only if he was serviced well This knowledge led to the establishment of the ldquo Company Depotsrdquo system This system helped in transshipment bulk breaking and as a stock point to minimize stock ndash outs at the RS level
In the recent past a significant change has been the replacement of the Company Depot by a system of third party Carrying and Forwarding Agents ( CampFAs ) The CampFAs act as buffer stock ndash points to ensure that stock ndash outs did not take place The CampFA system has also resulted in cost savings in terms of direct transportation and reduced time lag in delivery The most important benefit has been improved customer service to the RS
DISTRIBUTION AT VILLAGES ( RURAL MARKETS )
The company has brought all markets with populations of below 50000 under one rural sales organization
The team comprises an exclusive sales force and exclusive redistribution stockists
The team focuses on building superior availability of products
In rural India the network directly covers about 50000 villages reaching 250 million consumers through 6000 sub - stockists
DISTRIBUTION AT THE SUPERMARKETS
HUL has set up a full ndash scale sales organization for this channel to serve modern retailing outlets
Product tests and in ndash store sampling is provided to consumers
HARNESSING INFORMATION TECHNOLOGY
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
The objective is to make the product available at the right place and right time in the most cost effective manner
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
For this stockists have been connected through an Internet-based network called RS Net for online interaction
RS Net is part of Project Leap HULs end ndash to - end supply chain
PIONEERING NEW CHANNELS
HUL is simultaneously creating new channels designed on the same principal of holistic contact with customers
1) Project Shakti HULs partnership with Self Help Groups of rural women Started in 2001 Project Shakti has already been extended to about 50000 villages in 12 states - Andhra Pradesh Karnataka Gujarat and others
2) HINDUSTAN UNILEVER NETWORK ( HUN) it is the companyrsquos arm in the Direct Selling channel It represents a range of customized offerings in Home amp Personal Care and Foods
3) Out - Of -Home this deals in providing vending machines for hot beverages like tea coffee
4) Health and Beauty Services Lakme saloons provide specialized beauty services and solutions under the recognized authority of Lakme brand The Ayush Therapy Centers provide easy access to authentic Ayurvedic treatment and products
BUSINESS PRINCIPLES
People first
Employees people and products are more important at Hindustan Unilever Limited
than systems Systems and methods while necessary and valuable in running a complex
organization should remain managerial and operational aids but should not become ends
in themselves It is a question of priorities A strong orientation toward human beings
employees and executives is a decisive if not the decisive component of long-term
success
Quality products
Our focus is on products The ultimate justification for a company is its ability to offer
products that are appealing because of their quality convenience variety and price --
products that can stand their ground even in the face of fierce competition
Long-term view
HULmakes clear distinction between strategy and tactics It gives priority to the long-
range view Long-term thinking defuses many of the conflicts and contentions among
groups this applies to employment conditions and relations with employees as well as to
the conflicts and opposing interests of the trade and the industry Of course our ability to
focus on long-term considerations is only possible if the company is successful in the
struggle for short-term survival This is why HUL strives to maintain a satisfactory level
of profits every year
Uniformity
A very important concern at HUL has to do with uniformity how consistent HULrsquos
principles policies rules of conduct and strategies should be and to what extent they
should differ depending on the country subsidiary region branch or group of products
In general HUL tries to limit the uniformity of its policy to a requisite minimum
Diversification
HUL does not want to become either a conglomerate or a portfolio manager
HUListoperate only those businesses about which it has some special knowledge and
expertise HUL is a global company not a conglomerate hodgepodge We regard
acquisitions and efforts at diversification as logical ways to supplement our business but
only in the context of a carefully considered corporate marketing policy
Flexibility and simplicity
The publics sense of the power and size of a corporation is often inaccurate for a
companys power is limited by a host of factors including legislation competition
regulatory bodies and publicity From a business point of view it is desirable for
a firm to achieve the size best suited to a specific industry or mode of
production To be competitive internationally and make significant investments in
research and technology a larger company has an advantage From a strictly
organizational point of view flexible simple structures work best and excessively
large units should be avoided whenever possible In both respects HUL has a natural
advantage Although it is a big company it is spread out over many countries and
each of HULs factories has its own management and responsibility
Packaging
Manufacturing comprises all unit operations necessary to transform perishable raw
materials into finished products with the aim to make them safe and convenient
for the consumers The manufacturing activities of the HUL
respect natural resources by efficient use of raw materials and energy
minimize waste generation and emissions
ensure environmentally safe disposal of all waste which cannot be recycled
Regular assessments of processing practices are carried out These assessments
include
evaluation of individual plant performance with regard to operations which
have an impact on the environment
definition of targets for improvement
review of plant compliance with local government regulations company
environmental standards as well as results achieved in comparison with
targets for improvement
full investigation of incidents which may affect the environment
Information on developments in environmental protection technology and practices is
disseminated as required to ensure that all plants are using the most effective
environmental practices for their type of processing This applies also for co
packers
Marketing and distribution
Marketing is based on the principle of satisfying consumer needs This is the
foundation also for the environmental marketing approach of HUL
Environmental product claims in advertising promotional material and on
packaging are in accordance with legal requirements based on solid scientific
evidence and used in a serious and reasonable manner
Our aim is to minimize wastage in communication publicity and promotional
material in particular through more precise targeting of marketing activities
Consumer promotions and merchandising material such as consumer offers in store
promotions display material leaflets printed matter etc take environmental aspects
into account
This means due consideration of environmental impact in selecting both materials
and printing methods
In distribution energy efficient and pollution controlled methods are encouraged
wherever possible
Legislation and Regulations
It is the policy of the HUL to strictly comply with all laws and regulations
relevant to our activities We participate in discussions on food legislation and
regulations between international organizations government representatives industry
the scientific world and consumer associations We also apply this policy to
environment related matters
In doing so we cooperate with legislators through local industry associations in
order to promote laws and regulations in the field of environment which are
reasonable rational realistic applicable and enforceable We oppose unjustified bans
and any other discriminatory measures
35 BUSINESS CATEGORIES
HULrsquos purpose is to meet the everyday needs of people everywhere This vision has made HUL Indiarsquos largest Packaged Mass Consumption Goods Company with leadership in Home and Personal Care Products and Foods and BeveragesIt is the countryrsquos largest marketer of Soaps Detergents and Household Care productsIts expertise in Personal Products makes it the leader in Shampoos Skin Care Products Color Cosmetics Deodorants and Fragrances
In Foods and Beverages HUL remains the undisputed market leader in Tea Processed Coffee Branded Wheat Flour Tomato Products Ice Cream Jams and squashes
In New Ventures the new entrants are in Healthcare Confectioners and Network Marketing
HUL is also one of the countryrsquos biggest exporters and has earned the distinction of a Super Star Trading House Its Exports Division is a net foreign exchange earner Among the Exports are branded Soaps and Detergents Personal Products Tea amp Coffee Basmati Rice Castor Oil and its Derivatives
36 THE BRANDS
The formulation of branding strategies starts from the building a sustainable brand for the
company This is so as the consumers buy the brand not only for the intrinsic values
associated with it but also because of the promise that branding makes to the
consumerhellipthe promise of delivering values beyond expectation A framework is
suggested below for the formulation of a brand strategy-
1 Experiential marketing
The first component of branding strategy is the experiential marketing It is a well known
fact that the customers demand experiences instead of products or services This creates a
challenge to the organizations to find new ways to involve the customers in the value
chain so that they themselves can decide the product features and uniqueness that they
expect from the brand They want to know more about the details of the brand They
remove the shells and get into the core of the processes to understand the real value of the
brand Hence such a strategy should be framed that makes the consumers involvement
higher
2 Effective Branding
It is found that effective branding involves working on four important dimensions
namely
bull The Functional Dimension- The functional dimension concerns the perception of
benefit of the product or service associated with the brand
bull The Social Dimension- The Social Dimension concern the ability to create
identification with the group
bull The Spiritual Dimension- The Spiritual Dimension is the perception of global or
local responsibility
bull The Mental Dimension- The Mental Dimension is the ability to support the
individual mentally
3 Novel Brand Strategies
bull Customers Own the Brand- It should always be kept in mind that it is the consumers
who own the brand
bull Product Service- A sale should never be considered the ending of a transaction but the
beginning of a beautiful relationship Customer service basically creates a positive effect
on the minds of the customer and this positive influence on the mind of the consumer
makes them more open to new ideas and reduces their skeptic towards the brand
bull Buzz Marketing- The development in the technology used in the country has lead to
the increased importance paid to the concept of buzz marketing Branding increasingly
nowadays is moving into Internet-based applications
bull Religious Branding- since it is considered that religion has the power to bind people
and unify them under one common ideal an effective brand strategy must take into
account this powerful force which plays on the minds of the Indian consumers
4 Feedback and Improvements
It is very crucial to have the consumer participation In order to succeed in the long run it is crucial to allow the consumer participation at an intermediary stage of developing the product This will lead to creation of a better relationship between the company and its consumer
MARKETING STRATEGIES
Hindustan Unilever Limited has adopted a four pronged growth strategy -
1 Gunning the market with new products and brand extensions
2 Expansion of the distribution network to small towns for extensive
availability
3 Reduce prices and introduce smaller packages for products to
make them more affordable (a tool to enter price sensitive markets)
4 Focus on employ training and develop a positive attitude through
enhanced manpower development
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
model for detergents personal products and beverages are quite different from each other due to various factors
Similarly the success stories of urban markets cannot necessarily be replicated in rural markets
The evolution of HULrsquos distribution network
The evolution of HULrsquos distribution network The first place of the HUL distribution network had wholesalers placing bulk orders directly with the company Large retailers also placed direct orders which comprised almost 30 of the total orders collected
a) HULs products are distributed through a network of about 7000 redistribution stockists covering about one million retailoutlets
b) The general trade comprises grocery stores chemists wholesale kiosks and general stores
c) Hindustan Unilever provide tailor made services to each of its channel partners
d) HUL is using the point of purchase method for much higher level of direct contact through in ndash store facilitators sampling education and experience
The company salesman grouped all these orders and placed an indent with the Head Office Goods were sent to these markets with the company salesman as the consignee The salesman then collected and distributed the products to the respective wholesalers against cash payment and the money was remitted to the company
The focus of the second phase which spanned the decades of the 40s was to provide desired products and quality service to the companyrsquos customers In order to achieve this one wholesaler in each market was appointed as a ldquo Registered Wholesalerrdquo ( RW) a stock point for the companyrsquos products in that market The company salesman still covered the market canvassing for orders from the rest of the trade He would then distribute stocks from the RW through distribution units maintained by the company The RW system therefore increased the distribution reach of the company to a larger number of customers
The highlight of the third phase was the concept of ldquoRedistribution Stockistrdquo ( RS ) who replaced the RWs The RS was required to provide the distribution units to the company salesman The RS financed his stocks and provided warehousing facilities to store them The RS also undertook demand stimulation activities on behalf of the company The second characteristic of this period we realized that the RS would be able to provide customer service only if he was serviced well This knowledge led to the establishment of the ldquo Company Depotsrdquo system This system helped in transshipment bulk breaking and as a stock point to minimize stock ndash outs at the RS level
In the recent past a significant change has been the replacement of the Company Depot by a system of third party Carrying and Forwarding Agents ( CampFAs ) The CampFAs act as buffer stock ndash points to ensure that stock ndash outs did not take place The CampFA system has also resulted in cost savings in terms of direct transportation and reduced time lag in delivery The most important benefit has been improved customer service to the RS
DISTRIBUTION AT VILLAGES ( RURAL MARKETS )
The company has brought all markets with populations of below 50000 under one rural sales organization
The team comprises an exclusive sales force and exclusive redistribution stockists
The team focuses on building superior availability of products
In rural India the network directly covers about 50000 villages reaching 250 million consumers through 6000 sub - stockists
DISTRIBUTION AT THE SUPERMARKETS
HUL has set up a full ndash scale sales organization for this channel to serve modern retailing outlets
Product tests and in ndash store sampling is provided to consumers
HARNESSING INFORMATION TECHNOLOGY
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
The objective is to make the product available at the right place and right time in the most cost effective manner
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
For this stockists have been connected through an Internet-based network called RS Net for online interaction
RS Net is part of Project Leap HULs end ndash to - end supply chain
PIONEERING NEW CHANNELS
HUL is simultaneously creating new channels designed on the same principal of holistic contact with customers
1) Project Shakti HULs partnership with Self Help Groups of rural women Started in 2001 Project Shakti has already been extended to about 50000 villages in 12 states - Andhra Pradesh Karnataka Gujarat and others
2) HINDUSTAN UNILEVER NETWORK ( HUN) it is the companyrsquos arm in the Direct Selling channel It represents a range of customized offerings in Home amp Personal Care and Foods
3) Out - Of -Home this deals in providing vending machines for hot beverages like tea coffee
4) Health and Beauty Services Lakme saloons provide specialized beauty services and solutions under the recognized authority of Lakme brand The Ayush Therapy Centers provide easy access to authentic Ayurvedic treatment and products
BUSINESS PRINCIPLES
People first
Employees people and products are more important at Hindustan Unilever Limited
than systems Systems and methods while necessary and valuable in running a complex
organization should remain managerial and operational aids but should not become ends
in themselves It is a question of priorities A strong orientation toward human beings
employees and executives is a decisive if not the decisive component of long-term
success
Quality products
Our focus is on products The ultimate justification for a company is its ability to offer
products that are appealing because of their quality convenience variety and price --
products that can stand their ground even in the face of fierce competition
Long-term view
HULmakes clear distinction between strategy and tactics It gives priority to the long-
range view Long-term thinking defuses many of the conflicts and contentions among
groups this applies to employment conditions and relations with employees as well as to
the conflicts and opposing interests of the trade and the industry Of course our ability to
focus on long-term considerations is only possible if the company is successful in the
struggle for short-term survival This is why HUL strives to maintain a satisfactory level
of profits every year
Uniformity
A very important concern at HUL has to do with uniformity how consistent HULrsquos
principles policies rules of conduct and strategies should be and to what extent they
should differ depending on the country subsidiary region branch or group of products
In general HUL tries to limit the uniformity of its policy to a requisite minimum
Diversification
HUL does not want to become either a conglomerate or a portfolio manager
HUListoperate only those businesses about which it has some special knowledge and
expertise HUL is a global company not a conglomerate hodgepodge We regard
acquisitions and efforts at diversification as logical ways to supplement our business but
only in the context of a carefully considered corporate marketing policy
Flexibility and simplicity
The publics sense of the power and size of a corporation is often inaccurate for a
companys power is limited by a host of factors including legislation competition
regulatory bodies and publicity From a business point of view it is desirable for
a firm to achieve the size best suited to a specific industry or mode of
production To be competitive internationally and make significant investments in
research and technology a larger company has an advantage From a strictly
organizational point of view flexible simple structures work best and excessively
large units should be avoided whenever possible In both respects HUL has a natural
advantage Although it is a big company it is spread out over many countries and
each of HULs factories has its own management and responsibility
Packaging
Manufacturing comprises all unit operations necessary to transform perishable raw
materials into finished products with the aim to make them safe and convenient
for the consumers The manufacturing activities of the HUL
respect natural resources by efficient use of raw materials and energy
minimize waste generation and emissions
ensure environmentally safe disposal of all waste which cannot be recycled
Regular assessments of processing practices are carried out These assessments
include
evaluation of individual plant performance with regard to operations which
have an impact on the environment
definition of targets for improvement
review of plant compliance with local government regulations company
environmental standards as well as results achieved in comparison with
targets for improvement
full investigation of incidents which may affect the environment
Information on developments in environmental protection technology and practices is
disseminated as required to ensure that all plants are using the most effective
environmental practices for their type of processing This applies also for co
packers
Marketing and distribution
Marketing is based on the principle of satisfying consumer needs This is the
foundation also for the environmental marketing approach of HUL
Environmental product claims in advertising promotional material and on
packaging are in accordance with legal requirements based on solid scientific
evidence and used in a serious and reasonable manner
Our aim is to minimize wastage in communication publicity and promotional
material in particular through more precise targeting of marketing activities
Consumer promotions and merchandising material such as consumer offers in store
promotions display material leaflets printed matter etc take environmental aspects
into account
This means due consideration of environmental impact in selecting both materials
and printing methods
In distribution energy efficient and pollution controlled methods are encouraged
wherever possible
Legislation and Regulations
It is the policy of the HUL to strictly comply with all laws and regulations
relevant to our activities We participate in discussions on food legislation and
regulations between international organizations government representatives industry
the scientific world and consumer associations We also apply this policy to
environment related matters
In doing so we cooperate with legislators through local industry associations in
order to promote laws and regulations in the field of environment which are
reasonable rational realistic applicable and enforceable We oppose unjustified bans
and any other discriminatory measures
35 BUSINESS CATEGORIES
HULrsquos purpose is to meet the everyday needs of people everywhere This vision has made HUL Indiarsquos largest Packaged Mass Consumption Goods Company with leadership in Home and Personal Care Products and Foods and BeveragesIt is the countryrsquos largest marketer of Soaps Detergents and Household Care productsIts expertise in Personal Products makes it the leader in Shampoos Skin Care Products Color Cosmetics Deodorants and Fragrances
In Foods and Beverages HUL remains the undisputed market leader in Tea Processed Coffee Branded Wheat Flour Tomato Products Ice Cream Jams and squashes
In New Ventures the new entrants are in Healthcare Confectioners and Network Marketing
HUL is also one of the countryrsquos biggest exporters and has earned the distinction of a Super Star Trading House Its Exports Division is a net foreign exchange earner Among the Exports are branded Soaps and Detergents Personal Products Tea amp Coffee Basmati Rice Castor Oil and its Derivatives
36 THE BRANDS
The formulation of branding strategies starts from the building a sustainable brand for the
company This is so as the consumers buy the brand not only for the intrinsic values
associated with it but also because of the promise that branding makes to the
consumerhellipthe promise of delivering values beyond expectation A framework is
suggested below for the formulation of a brand strategy-
1 Experiential marketing
The first component of branding strategy is the experiential marketing It is a well known
fact that the customers demand experiences instead of products or services This creates a
challenge to the organizations to find new ways to involve the customers in the value
chain so that they themselves can decide the product features and uniqueness that they
expect from the brand They want to know more about the details of the brand They
remove the shells and get into the core of the processes to understand the real value of the
brand Hence such a strategy should be framed that makes the consumers involvement
higher
2 Effective Branding
It is found that effective branding involves working on four important dimensions
namely
bull The Functional Dimension- The functional dimension concerns the perception of
benefit of the product or service associated with the brand
bull The Social Dimension- The Social Dimension concern the ability to create
identification with the group
bull The Spiritual Dimension- The Spiritual Dimension is the perception of global or
local responsibility
bull The Mental Dimension- The Mental Dimension is the ability to support the
individual mentally
3 Novel Brand Strategies
bull Customers Own the Brand- It should always be kept in mind that it is the consumers
who own the brand
bull Product Service- A sale should never be considered the ending of a transaction but the
beginning of a beautiful relationship Customer service basically creates a positive effect
on the minds of the customer and this positive influence on the mind of the consumer
makes them more open to new ideas and reduces their skeptic towards the brand
bull Buzz Marketing- The development in the technology used in the country has lead to
the increased importance paid to the concept of buzz marketing Branding increasingly
nowadays is moving into Internet-based applications
bull Religious Branding- since it is considered that religion has the power to bind people
and unify them under one common ideal an effective brand strategy must take into
account this powerful force which plays on the minds of the Indian consumers
4 Feedback and Improvements
It is very crucial to have the consumer participation In order to succeed in the long run it is crucial to allow the consumer participation at an intermediary stage of developing the product This will lead to creation of a better relationship between the company and its consumer
MARKETING STRATEGIES
Hindustan Unilever Limited has adopted a four pronged growth strategy -
1 Gunning the market with new products and brand extensions
2 Expansion of the distribution network to small towns for extensive
availability
3 Reduce prices and introduce smaller packages for products to
make them more affordable (a tool to enter price sensitive markets)
4 Focus on employ training and develop a positive attitude through
enhanced manpower development
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
The highlight of the third phase was the concept of ldquoRedistribution Stockistrdquo ( RS ) who replaced the RWs The RS was required to provide the distribution units to the company salesman The RS financed his stocks and provided warehousing facilities to store them The RS also undertook demand stimulation activities on behalf of the company The second characteristic of this period we realized that the RS would be able to provide customer service only if he was serviced well This knowledge led to the establishment of the ldquo Company Depotsrdquo system This system helped in transshipment bulk breaking and as a stock point to minimize stock ndash outs at the RS level
In the recent past a significant change has been the replacement of the Company Depot by a system of third party Carrying and Forwarding Agents ( CampFAs ) The CampFAs act as buffer stock ndash points to ensure that stock ndash outs did not take place The CampFA system has also resulted in cost savings in terms of direct transportation and reduced time lag in delivery The most important benefit has been improved customer service to the RS
DISTRIBUTION AT VILLAGES ( RURAL MARKETS )
The company has brought all markets with populations of below 50000 under one rural sales organization
The team comprises an exclusive sales force and exclusive redistribution stockists
The team focuses on building superior availability of products
In rural India the network directly covers about 50000 villages reaching 250 million consumers through 6000 sub - stockists
DISTRIBUTION AT THE SUPERMARKETS
HUL has set up a full ndash scale sales organization for this channel to serve modern retailing outlets
Product tests and in ndash store sampling is provided to consumers
HARNESSING INFORMATION TECHNOLOGY
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
The objective is to make the product available at the right place and right time in the most cost effective manner
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
For this stockists have been connected through an Internet-based network called RS Net for online interaction
RS Net is part of Project Leap HULs end ndash to - end supply chain
PIONEERING NEW CHANNELS
HUL is simultaneously creating new channels designed on the same principal of holistic contact with customers
1) Project Shakti HULs partnership with Self Help Groups of rural women Started in 2001 Project Shakti has already been extended to about 50000 villages in 12 states - Andhra Pradesh Karnataka Gujarat and others
2) HINDUSTAN UNILEVER NETWORK ( HUN) it is the companyrsquos arm in the Direct Selling channel It represents a range of customized offerings in Home amp Personal Care and Foods
3) Out - Of -Home this deals in providing vending machines for hot beverages like tea coffee
4) Health and Beauty Services Lakme saloons provide specialized beauty services and solutions under the recognized authority of Lakme brand The Ayush Therapy Centers provide easy access to authentic Ayurvedic treatment and products
BUSINESS PRINCIPLES
People first
Employees people and products are more important at Hindustan Unilever Limited
than systems Systems and methods while necessary and valuable in running a complex
organization should remain managerial and operational aids but should not become ends
in themselves It is a question of priorities A strong orientation toward human beings
employees and executives is a decisive if not the decisive component of long-term
success
Quality products
Our focus is on products The ultimate justification for a company is its ability to offer
products that are appealing because of their quality convenience variety and price --
products that can stand their ground even in the face of fierce competition
Long-term view
HULmakes clear distinction between strategy and tactics It gives priority to the long-
range view Long-term thinking defuses many of the conflicts and contentions among
groups this applies to employment conditions and relations with employees as well as to
the conflicts and opposing interests of the trade and the industry Of course our ability to
focus on long-term considerations is only possible if the company is successful in the
struggle for short-term survival This is why HUL strives to maintain a satisfactory level
of profits every year
Uniformity
A very important concern at HUL has to do with uniformity how consistent HULrsquos
principles policies rules of conduct and strategies should be and to what extent they
should differ depending on the country subsidiary region branch or group of products
In general HUL tries to limit the uniformity of its policy to a requisite minimum
Diversification
HUL does not want to become either a conglomerate or a portfolio manager
HUListoperate only those businesses about which it has some special knowledge and
expertise HUL is a global company not a conglomerate hodgepodge We regard
acquisitions and efforts at diversification as logical ways to supplement our business but
only in the context of a carefully considered corporate marketing policy
Flexibility and simplicity
The publics sense of the power and size of a corporation is often inaccurate for a
companys power is limited by a host of factors including legislation competition
regulatory bodies and publicity From a business point of view it is desirable for
a firm to achieve the size best suited to a specific industry or mode of
production To be competitive internationally and make significant investments in
research and technology a larger company has an advantage From a strictly
organizational point of view flexible simple structures work best and excessively
large units should be avoided whenever possible In both respects HUL has a natural
advantage Although it is a big company it is spread out over many countries and
each of HULs factories has its own management and responsibility
Packaging
Manufacturing comprises all unit operations necessary to transform perishable raw
materials into finished products with the aim to make them safe and convenient
for the consumers The manufacturing activities of the HUL
respect natural resources by efficient use of raw materials and energy
minimize waste generation and emissions
ensure environmentally safe disposal of all waste which cannot be recycled
Regular assessments of processing practices are carried out These assessments
include
evaluation of individual plant performance with regard to operations which
have an impact on the environment
definition of targets for improvement
review of plant compliance with local government regulations company
environmental standards as well as results achieved in comparison with
targets for improvement
full investigation of incidents which may affect the environment
Information on developments in environmental protection technology and practices is
disseminated as required to ensure that all plants are using the most effective
environmental practices for their type of processing This applies also for co
packers
Marketing and distribution
Marketing is based on the principle of satisfying consumer needs This is the
foundation also for the environmental marketing approach of HUL
Environmental product claims in advertising promotional material and on
packaging are in accordance with legal requirements based on solid scientific
evidence and used in a serious and reasonable manner
Our aim is to minimize wastage in communication publicity and promotional
material in particular through more precise targeting of marketing activities
Consumer promotions and merchandising material such as consumer offers in store
promotions display material leaflets printed matter etc take environmental aspects
into account
This means due consideration of environmental impact in selecting both materials
and printing methods
In distribution energy efficient and pollution controlled methods are encouraged
wherever possible
Legislation and Regulations
It is the policy of the HUL to strictly comply with all laws and regulations
relevant to our activities We participate in discussions on food legislation and
regulations between international organizations government representatives industry
the scientific world and consumer associations We also apply this policy to
environment related matters
In doing so we cooperate with legislators through local industry associations in
order to promote laws and regulations in the field of environment which are
reasonable rational realistic applicable and enforceable We oppose unjustified bans
and any other discriminatory measures
35 BUSINESS CATEGORIES
HULrsquos purpose is to meet the everyday needs of people everywhere This vision has made HUL Indiarsquos largest Packaged Mass Consumption Goods Company with leadership in Home and Personal Care Products and Foods and BeveragesIt is the countryrsquos largest marketer of Soaps Detergents and Household Care productsIts expertise in Personal Products makes it the leader in Shampoos Skin Care Products Color Cosmetics Deodorants and Fragrances
In Foods and Beverages HUL remains the undisputed market leader in Tea Processed Coffee Branded Wheat Flour Tomato Products Ice Cream Jams and squashes
In New Ventures the new entrants are in Healthcare Confectioners and Network Marketing
HUL is also one of the countryrsquos biggest exporters and has earned the distinction of a Super Star Trading House Its Exports Division is a net foreign exchange earner Among the Exports are branded Soaps and Detergents Personal Products Tea amp Coffee Basmati Rice Castor Oil and its Derivatives
36 THE BRANDS
The formulation of branding strategies starts from the building a sustainable brand for the
company This is so as the consumers buy the brand not only for the intrinsic values
associated with it but also because of the promise that branding makes to the
consumerhellipthe promise of delivering values beyond expectation A framework is
suggested below for the formulation of a brand strategy-
1 Experiential marketing
The first component of branding strategy is the experiential marketing It is a well known
fact that the customers demand experiences instead of products or services This creates a
challenge to the organizations to find new ways to involve the customers in the value
chain so that they themselves can decide the product features and uniqueness that they
expect from the brand They want to know more about the details of the brand They
remove the shells and get into the core of the processes to understand the real value of the
brand Hence such a strategy should be framed that makes the consumers involvement
higher
2 Effective Branding
It is found that effective branding involves working on four important dimensions
namely
bull The Functional Dimension- The functional dimension concerns the perception of
benefit of the product or service associated with the brand
bull The Social Dimension- The Social Dimension concern the ability to create
identification with the group
bull The Spiritual Dimension- The Spiritual Dimension is the perception of global or
local responsibility
bull The Mental Dimension- The Mental Dimension is the ability to support the
individual mentally
3 Novel Brand Strategies
bull Customers Own the Brand- It should always be kept in mind that it is the consumers
who own the brand
bull Product Service- A sale should never be considered the ending of a transaction but the
beginning of a beautiful relationship Customer service basically creates a positive effect
on the minds of the customer and this positive influence on the mind of the consumer
makes them more open to new ideas and reduces their skeptic towards the brand
bull Buzz Marketing- The development in the technology used in the country has lead to
the increased importance paid to the concept of buzz marketing Branding increasingly
nowadays is moving into Internet-based applications
bull Religious Branding- since it is considered that religion has the power to bind people
and unify them under one common ideal an effective brand strategy must take into
account this powerful force which plays on the minds of the Indian consumers
4 Feedback and Improvements
It is very crucial to have the consumer participation In order to succeed in the long run it is crucial to allow the consumer participation at an intermediary stage of developing the product This will lead to creation of a better relationship between the company and its consumer
MARKETING STRATEGIES
Hindustan Unilever Limited has adopted a four pronged growth strategy -
1 Gunning the market with new products and brand extensions
2 Expansion of the distribution network to small towns for extensive
availability
3 Reduce prices and introduce smaller packages for products to
make them more affordable (a tool to enter price sensitive markets)
4 Focus on employ training and develop a positive attitude through
enhanced manpower development
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
HARNESSING INFORMATION TECHNOLOGY
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
The objective is to make the product available at the right place and right time in the most cost effective manner
An IT ndash powered system has been implemented to supply stocks to redistribution stockists
For this stockists have been connected through an Internet-based network called RS Net for online interaction
RS Net is part of Project Leap HULs end ndash to - end supply chain
PIONEERING NEW CHANNELS
HUL is simultaneously creating new channels designed on the same principal of holistic contact with customers
1) Project Shakti HULs partnership with Self Help Groups of rural women Started in 2001 Project Shakti has already been extended to about 50000 villages in 12 states - Andhra Pradesh Karnataka Gujarat and others
2) HINDUSTAN UNILEVER NETWORK ( HUN) it is the companyrsquos arm in the Direct Selling channel It represents a range of customized offerings in Home amp Personal Care and Foods
3) Out - Of -Home this deals in providing vending machines for hot beverages like tea coffee
4) Health and Beauty Services Lakme saloons provide specialized beauty services and solutions under the recognized authority of Lakme brand The Ayush Therapy Centers provide easy access to authentic Ayurvedic treatment and products
BUSINESS PRINCIPLES
People first
Employees people and products are more important at Hindustan Unilever Limited
than systems Systems and methods while necessary and valuable in running a complex
organization should remain managerial and operational aids but should not become ends
in themselves It is a question of priorities A strong orientation toward human beings
employees and executives is a decisive if not the decisive component of long-term
success
Quality products
Our focus is on products The ultimate justification for a company is its ability to offer
products that are appealing because of their quality convenience variety and price --
products that can stand their ground even in the face of fierce competition
Long-term view
HULmakes clear distinction between strategy and tactics It gives priority to the long-
range view Long-term thinking defuses many of the conflicts and contentions among
groups this applies to employment conditions and relations with employees as well as to
the conflicts and opposing interests of the trade and the industry Of course our ability to
focus on long-term considerations is only possible if the company is successful in the
struggle for short-term survival This is why HUL strives to maintain a satisfactory level
of profits every year
Uniformity
A very important concern at HUL has to do with uniformity how consistent HULrsquos
principles policies rules of conduct and strategies should be and to what extent they
should differ depending on the country subsidiary region branch or group of products
In general HUL tries to limit the uniformity of its policy to a requisite minimum
Diversification
HUL does not want to become either a conglomerate or a portfolio manager
HUListoperate only those businesses about which it has some special knowledge and
expertise HUL is a global company not a conglomerate hodgepodge We regard
acquisitions and efforts at diversification as logical ways to supplement our business but
only in the context of a carefully considered corporate marketing policy
Flexibility and simplicity
The publics sense of the power and size of a corporation is often inaccurate for a
companys power is limited by a host of factors including legislation competition
regulatory bodies and publicity From a business point of view it is desirable for
a firm to achieve the size best suited to a specific industry or mode of
production To be competitive internationally and make significant investments in
research and technology a larger company has an advantage From a strictly
organizational point of view flexible simple structures work best and excessively
large units should be avoided whenever possible In both respects HUL has a natural
advantage Although it is a big company it is spread out over many countries and
each of HULs factories has its own management and responsibility
Packaging
Manufacturing comprises all unit operations necessary to transform perishable raw
materials into finished products with the aim to make them safe and convenient
for the consumers The manufacturing activities of the HUL
respect natural resources by efficient use of raw materials and energy
minimize waste generation and emissions
ensure environmentally safe disposal of all waste which cannot be recycled
Regular assessments of processing practices are carried out These assessments
include
evaluation of individual plant performance with regard to operations which
have an impact on the environment
definition of targets for improvement
review of plant compliance with local government regulations company
environmental standards as well as results achieved in comparison with
targets for improvement
full investigation of incidents which may affect the environment
Information on developments in environmental protection technology and practices is
disseminated as required to ensure that all plants are using the most effective
environmental practices for their type of processing This applies also for co
packers
Marketing and distribution
Marketing is based on the principle of satisfying consumer needs This is the
foundation also for the environmental marketing approach of HUL
Environmental product claims in advertising promotional material and on
packaging are in accordance with legal requirements based on solid scientific
evidence and used in a serious and reasonable manner
Our aim is to minimize wastage in communication publicity and promotional
material in particular through more precise targeting of marketing activities
Consumer promotions and merchandising material such as consumer offers in store
promotions display material leaflets printed matter etc take environmental aspects
into account
This means due consideration of environmental impact in selecting both materials
and printing methods
In distribution energy efficient and pollution controlled methods are encouraged
wherever possible
Legislation and Regulations
It is the policy of the HUL to strictly comply with all laws and regulations
relevant to our activities We participate in discussions on food legislation and
regulations between international organizations government representatives industry
the scientific world and consumer associations We also apply this policy to
environment related matters
In doing so we cooperate with legislators through local industry associations in
order to promote laws and regulations in the field of environment which are
reasonable rational realistic applicable and enforceable We oppose unjustified bans
and any other discriminatory measures
35 BUSINESS CATEGORIES
HULrsquos purpose is to meet the everyday needs of people everywhere This vision has made HUL Indiarsquos largest Packaged Mass Consumption Goods Company with leadership in Home and Personal Care Products and Foods and BeveragesIt is the countryrsquos largest marketer of Soaps Detergents and Household Care productsIts expertise in Personal Products makes it the leader in Shampoos Skin Care Products Color Cosmetics Deodorants and Fragrances
In Foods and Beverages HUL remains the undisputed market leader in Tea Processed Coffee Branded Wheat Flour Tomato Products Ice Cream Jams and squashes
In New Ventures the new entrants are in Healthcare Confectioners and Network Marketing
HUL is also one of the countryrsquos biggest exporters and has earned the distinction of a Super Star Trading House Its Exports Division is a net foreign exchange earner Among the Exports are branded Soaps and Detergents Personal Products Tea amp Coffee Basmati Rice Castor Oil and its Derivatives
36 THE BRANDS
The formulation of branding strategies starts from the building a sustainable brand for the
company This is so as the consumers buy the brand not only for the intrinsic values
associated with it but also because of the promise that branding makes to the
consumerhellipthe promise of delivering values beyond expectation A framework is
suggested below for the formulation of a brand strategy-
1 Experiential marketing
The first component of branding strategy is the experiential marketing It is a well known
fact that the customers demand experiences instead of products or services This creates a
challenge to the organizations to find new ways to involve the customers in the value
chain so that they themselves can decide the product features and uniqueness that they
expect from the brand They want to know more about the details of the brand They
remove the shells and get into the core of the processes to understand the real value of the
brand Hence such a strategy should be framed that makes the consumers involvement
higher
2 Effective Branding
It is found that effective branding involves working on four important dimensions
namely
bull The Functional Dimension- The functional dimension concerns the perception of
benefit of the product or service associated with the brand
bull The Social Dimension- The Social Dimension concern the ability to create
identification with the group
bull The Spiritual Dimension- The Spiritual Dimension is the perception of global or
local responsibility
bull The Mental Dimension- The Mental Dimension is the ability to support the
individual mentally
3 Novel Brand Strategies
bull Customers Own the Brand- It should always be kept in mind that it is the consumers
who own the brand
bull Product Service- A sale should never be considered the ending of a transaction but the
beginning of a beautiful relationship Customer service basically creates a positive effect
on the minds of the customer and this positive influence on the mind of the consumer
makes them more open to new ideas and reduces their skeptic towards the brand
bull Buzz Marketing- The development in the technology used in the country has lead to
the increased importance paid to the concept of buzz marketing Branding increasingly
nowadays is moving into Internet-based applications
bull Religious Branding- since it is considered that religion has the power to bind people
and unify them under one common ideal an effective brand strategy must take into
account this powerful force which plays on the minds of the Indian consumers
4 Feedback and Improvements
It is very crucial to have the consumer participation In order to succeed in the long run it is crucial to allow the consumer participation at an intermediary stage of developing the product This will lead to creation of a better relationship between the company and its consumer
MARKETING STRATEGIES
Hindustan Unilever Limited has adopted a four pronged growth strategy -
1 Gunning the market with new products and brand extensions
2 Expansion of the distribution network to small towns for extensive
availability
3 Reduce prices and introduce smaller packages for products to
make them more affordable (a tool to enter price sensitive markets)
4 Focus on employ training and develop a positive attitude through
enhanced manpower development
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
BUSINESS PRINCIPLES
People first
Employees people and products are more important at Hindustan Unilever Limited
than systems Systems and methods while necessary and valuable in running a complex
organization should remain managerial and operational aids but should not become ends
in themselves It is a question of priorities A strong orientation toward human beings
employees and executives is a decisive if not the decisive component of long-term
success
Quality products
Our focus is on products The ultimate justification for a company is its ability to offer
products that are appealing because of their quality convenience variety and price --
products that can stand their ground even in the face of fierce competition
Long-term view
HULmakes clear distinction between strategy and tactics It gives priority to the long-
range view Long-term thinking defuses many of the conflicts and contentions among
groups this applies to employment conditions and relations with employees as well as to
the conflicts and opposing interests of the trade and the industry Of course our ability to
focus on long-term considerations is only possible if the company is successful in the
struggle for short-term survival This is why HUL strives to maintain a satisfactory level
of profits every year
Uniformity
A very important concern at HUL has to do with uniformity how consistent HULrsquos
principles policies rules of conduct and strategies should be and to what extent they
should differ depending on the country subsidiary region branch or group of products
In general HUL tries to limit the uniformity of its policy to a requisite minimum
Diversification
HUL does not want to become either a conglomerate or a portfolio manager
HUListoperate only those businesses about which it has some special knowledge and
expertise HUL is a global company not a conglomerate hodgepodge We regard
acquisitions and efforts at diversification as logical ways to supplement our business but
only in the context of a carefully considered corporate marketing policy
Flexibility and simplicity
The publics sense of the power and size of a corporation is often inaccurate for a
companys power is limited by a host of factors including legislation competition
regulatory bodies and publicity From a business point of view it is desirable for
a firm to achieve the size best suited to a specific industry or mode of
production To be competitive internationally and make significant investments in
research and technology a larger company has an advantage From a strictly
organizational point of view flexible simple structures work best and excessively
large units should be avoided whenever possible In both respects HUL has a natural
advantage Although it is a big company it is spread out over many countries and
each of HULs factories has its own management and responsibility
Packaging
Manufacturing comprises all unit operations necessary to transform perishable raw
materials into finished products with the aim to make them safe and convenient
for the consumers The manufacturing activities of the HUL
respect natural resources by efficient use of raw materials and energy
minimize waste generation and emissions
ensure environmentally safe disposal of all waste which cannot be recycled
Regular assessments of processing practices are carried out These assessments
include
evaluation of individual plant performance with regard to operations which
have an impact on the environment
definition of targets for improvement
review of plant compliance with local government regulations company
environmental standards as well as results achieved in comparison with
targets for improvement
full investigation of incidents which may affect the environment
Information on developments in environmental protection technology and practices is
disseminated as required to ensure that all plants are using the most effective
environmental practices for their type of processing This applies also for co
packers
Marketing and distribution
Marketing is based on the principle of satisfying consumer needs This is the
foundation also for the environmental marketing approach of HUL
Environmental product claims in advertising promotional material and on
packaging are in accordance with legal requirements based on solid scientific
evidence and used in a serious and reasonable manner
Our aim is to minimize wastage in communication publicity and promotional
material in particular through more precise targeting of marketing activities
Consumer promotions and merchandising material such as consumer offers in store
promotions display material leaflets printed matter etc take environmental aspects
into account
This means due consideration of environmental impact in selecting both materials
and printing methods
In distribution energy efficient and pollution controlled methods are encouraged
wherever possible
Legislation and Regulations
It is the policy of the HUL to strictly comply with all laws and regulations
relevant to our activities We participate in discussions on food legislation and
regulations between international organizations government representatives industry
the scientific world and consumer associations We also apply this policy to
environment related matters
In doing so we cooperate with legislators through local industry associations in
order to promote laws and regulations in the field of environment which are
reasonable rational realistic applicable and enforceable We oppose unjustified bans
and any other discriminatory measures
35 BUSINESS CATEGORIES
HULrsquos purpose is to meet the everyday needs of people everywhere This vision has made HUL Indiarsquos largest Packaged Mass Consumption Goods Company with leadership in Home and Personal Care Products and Foods and BeveragesIt is the countryrsquos largest marketer of Soaps Detergents and Household Care productsIts expertise in Personal Products makes it the leader in Shampoos Skin Care Products Color Cosmetics Deodorants and Fragrances
In Foods and Beverages HUL remains the undisputed market leader in Tea Processed Coffee Branded Wheat Flour Tomato Products Ice Cream Jams and squashes
In New Ventures the new entrants are in Healthcare Confectioners and Network Marketing
HUL is also one of the countryrsquos biggest exporters and has earned the distinction of a Super Star Trading House Its Exports Division is a net foreign exchange earner Among the Exports are branded Soaps and Detergents Personal Products Tea amp Coffee Basmati Rice Castor Oil and its Derivatives
36 THE BRANDS
The formulation of branding strategies starts from the building a sustainable brand for the
company This is so as the consumers buy the brand not only for the intrinsic values
associated with it but also because of the promise that branding makes to the
consumerhellipthe promise of delivering values beyond expectation A framework is
suggested below for the formulation of a brand strategy-
1 Experiential marketing
The first component of branding strategy is the experiential marketing It is a well known
fact that the customers demand experiences instead of products or services This creates a
challenge to the organizations to find new ways to involve the customers in the value
chain so that they themselves can decide the product features and uniqueness that they
expect from the brand They want to know more about the details of the brand They
remove the shells and get into the core of the processes to understand the real value of the
brand Hence such a strategy should be framed that makes the consumers involvement
higher
2 Effective Branding
It is found that effective branding involves working on four important dimensions
namely
bull The Functional Dimension- The functional dimension concerns the perception of
benefit of the product or service associated with the brand
bull The Social Dimension- The Social Dimension concern the ability to create
identification with the group
bull The Spiritual Dimension- The Spiritual Dimension is the perception of global or
local responsibility
bull The Mental Dimension- The Mental Dimension is the ability to support the
individual mentally
3 Novel Brand Strategies
bull Customers Own the Brand- It should always be kept in mind that it is the consumers
who own the brand
bull Product Service- A sale should never be considered the ending of a transaction but the
beginning of a beautiful relationship Customer service basically creates a positive effect
on the minds of the customer and this positive influence on the mind of the consumer
makes them more open to new ideas and reduces their skeptic towards the brand
bull Buzz Marketing- The development in the technology used in the country has lead to
the increased importance paid to the concept of buzz marketing Branding increasingly
nowadays is moving into Internet-based applications
bull Religious Branding- since it is considered that religion has the power to bind people
and unify them under one common ideal an effective brand strategy must take into
account this powerful force which plays on the minds of the Indian consumers
4 Feedback and Improvements
It is very crucial to have the consumer participation In order to succeed in the long run it is crucial to allow the consumer participation at an intermediary stage of developing the product This will lead to creation of a better relationship between the company and its consumer
MARKETING STRATEGIES
Hindustan Unilever Limited has adopted a four pronged growth strategy -
1 Gunning the market with new products and brand extensions
2 Expansion of the distribution network to small towns for extensive
availability
3 Reduce prices and introduce smaller packages for products to
make them more affordable (a tool to enter price sensitive markets)
4 Focus on employ training and develop a positive attitude through
enhanced manpower development
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
Uniformity
A very important concern at HUL has to do with uniformity how consistent HULrsquos
principles policies rules of conduct and strategies should be and to what extent they
should differ depending on the country subsidiary region branch or group of products
In general HUL tries to limit the uniformity of its policy to a requisite minimum
Diversification
HUL does not want to become either a conglomerate or a portfolio manager
HUListoperate only those businesses about which it has some special knowledge and
expertise HUL is a global company not a conglomerate hodgepodge We regard
acquisitions and efforts at diversification as logical ways to supplement our business but
only in the context of a carefully considered corporate marketing policy
Flexibility and simplicity
The publics sense of the power and size of a corporation is often inaccurate for a
companys power is limited by a host of factors including legislation competition
regulatory bodies and publicity From a business point of view it is desirable for
a firm to achieve the size best suited to a specific industry or mode of
production To be competitive internationally and make significant investments in
research and technology a larger company has an advantage From a strictly
organizational point of view flexible simple structures work best and excessively
large units should be avoided whenever possible In both respects HUL has a natural
advantage Although it is a big company it is spread out over many countries and
each of HULs factories has its own management and responsibility
Packaging
Manufacturing comprises all unit operations necessary to transform perishable raw
materials into finished products with the aim to make them safe and convenient
for the consumers The manufacturing activities of the HUL
respect natural resources by efficient use of raw materials and energy
minimize waste generation and emissions
ensure environmentally safe disposal of all waste which cannot be recycled
Regular assessments of processing practices are carried out These assessments
include
evaluation of individual plant performance with regard to operations which
have an impact on the environment
definition of targets for improvement
review of plant compliance with local government regulations company
environmental standards as well as results achieved in comparison with
targets for improvement
full investigation of incidents which may affect the environment
Information on developments in environmental protection technology and practices is
disseminated as required to ensure that all plants are using the most effective
environmental practices for their type of processing This applies also for co
packers
Marketing and distribution
Marketing is based on the principle of satisfying consumer needs This is the
foundation also for the environmental marketing approach of HUL
Environmental product claims in advertising promotional material and on
packaging are in accordance with legal requirements based on solid scientific
evidence and used in a serious and reasonable manner
Our aim is to minimize wastage in communication publicity and promotional
material in particular through more precise targeting of marketing activities
Consumer promotions and merchandising material such as consumer offers in store
promotions display material leaflets printed matter etc take environmental aspects
into account
This means due consideration of environmental impact in selecting both materials
and printing methods
In distribution energy efficient and pollution controlled methods are encouraged
wherever possible
Legislation and Regulations
It is the policy of the HUL to strictly comply with all laws and regulations
relevant to our activities We participate in discussions on food legislation and
regulations between international organizations government representatives industry
the scientific world and consumer associations We also apply this policy to
environment related matters
In doing so we cooperate with legislators through local industry associations in
order to promote laws and regulations in the field of environment which are
reasonable rational realistic applicable and enforceable We oppose unjustified bans
and any other discriminatory measures
35 BUSINESS CATEGORIES
HULrsquos purpose is to meet the everyday needs of people everywhere This vision has made HUL Indiarsquos largest Packaged Mass Consumption Goods Company with leadership in Home and Personal Care Products and Foods and BeveragesIt is the countryrsquos largest marketer of Soaps Detergents and Household Care productsIts expertise in Personal Products makes it the leader in Shampoos Skin Care Products Color Cosmetics Deodorants and Fragrances
In Foods and Beverages HUL remains the undisputed market leader in Tea Processed Coffee Branded Wheat Flour Tomato Products Ice Cream Jams and squashes
In New Ventures the new entrants are in Healthcare Confectioners and Network Marketing
HUL is also one of the countryrsquos biggest exporters and has earned the distinction of a Super Star Trading House Its Exports Division is a net foreign exchange earner Among the Exports are branded Soaps and Detergents Personal Products Tea amp Coffee Basmati Rice Castor Oil and its Derivatives
36 THE BRANDS
The formulation of branding strategies starts from the building a sustainable brand for the
company This is so as the consumers buy the brand not only for the intrinsic values
associated with it but also because of the promise that branding makes to the
consumerhellipthe promise of delivering values beyond expectation A framework is
suggested below for the formulation of a brand strategy-
1 Experiential marketing
The first component of branding strategy is the experiential marketing It is a well known
fact that the customers demand experiences instead of products or services This creates a
challenge to the organizations to find new ways to involve the customers in the value
chain so that they themselves can decide the product features and uniqueness that they
expect from the brand They want to know more about the details of the brand They
remove the shells and get into the core of the processes to understand the real value of the
brand Hence such a strategy should be framed that makes the consumers involvement
higher
2 Effective Branding
It is found that effective branding involves working on four important dimensions
namely
bull The Functional Dimension- The functional dimension concerns the perception of
benefit of the product or service associated with the brand
bull The Social Dimension- The Social Dimension concern the ability to create
identification with the group
bull The Spiritual Dimension- The Spiritual Dimension is the perception of global or
local responsibility
bull The Mental Dimension- The Mental Dimension is the ability to support the
individual mentally
3 Novel Brand Strategies
bull Customers Own the Brand- It should always be kept in mind that it is the consumers
who own the brand
bull Product Service- A sale should never be considered the ending of a transaction but the
beginning of a beautiful relationship Customer service basically creates a positive effect
on the minds of the customer and this positive influence on the mind of the consumer
makes them more open to new ideas and reduces their skeptic towards the brand
bull Buzz Marketing- The development in the technology used in the country has lead to
the increased importance paid to the concept of buzz marketing Branding increasingly
nowadays is moving into Internet-based applications
bull Religious Branding- since it is considered that religion has the power to bind people
and unify them under one common ideal an effective brand strategy must take into
account this powerful force which plays on the minds of the Indian consumers
4 Feedback and Improvements
It is very crucial to have the consumer participation In order to succeed in the long run it is crucial to allow the consumer participation at an intermediary stage of developing the product This will lead to creation of a better relationship between the company and its consumer
MARKETING STRATEGIES
Hindustan Unilever Limited has adopted a four pronged growth strategy -
1 Gunning the market with new products and brand extensions
2 Expansion of the distribution network to small towns for extensive
availability
3 Reduce prices and introduce smaller packages for products to
make them more affordable (a tool to enter price sensitive markets)
4 Focus on employ training and develop a positive attitude through
enhanced manpower development
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
Packaging
Manufacturing comprises all unit operations necessary to transform perishable raw
materials into finished products with the aim to make them safe and convenient
for the consumers The manufacturing activities of the HUL
respect natural resources by efficient use of raw materials and energy
minimize waste generation and emissions
ensure environmentally safe disposal of all waste which cannot be recycled
Regular assessments of processing practices are carried out These assessments
include
evaluation of individual plant performance with regard to operations which
have an impact on the environment
definition of targets for improvement
review of plant compliance with local government regulations company
environmental standards as well as results achieved in comparison with
targets for improvement
full investigation of incidents which may affect the environment
Information on developments in environmental protection technology and practices is
disseminated as required to ensure that all plants are using the most effective
environmental practices for their type of processing This applies also for co
packers
Marketing and distribution
Marketing is based on the principle of satisfying consumer needs This is the
foundation also for the environmental marketing approach of HUL
Environmental product claims in advertising promotional material and on
packaging are in accordance with legal requirements based on solid scientific
evidence and used in a serious and reasonable manner
Our aim is to minimize wastage in communication publicity and promotional
material in particular through more precise targeting of marketing activities
Consumer promotions and merchandising material such as consumer offers in store
promotions display material leaflets printed matter etc take environmental aspects
into account
This means due consideration of environmental impact in selecting both materials
and printing methods
In distribution energy efficient and pollution controlled methods are encouraged
wherever possible
Legislation and Regulations
It is the policy of the HUL to strictly comply with all laws and regulations
relevant to our activities We participate in discussions on food legislation and
regulations between international organizations government representatives industry
the scientific world and consumer associations We also apply this policy to
environment related matters
In doing so we cooperate with legislators through local industry associations in
order to promote laws and regulations in the field of environment which are
reasonable rational realistic applicable and enforceable We oppose unjustified bans
and any other discriminatory measures
35 BUSINESS CATEGORIES
HULrsquos purpose is to meet the everyday needs of people everywhere This vision has made HUL Indiarsquos largest Packaged Mass Consumption Goods Company with leadership in Home and Personal Care Products and Foods and BeveragesIt is the countryrsquos largest marketer of Soaps Detergents and Household Care productsIts expertise in Personal Products makes it the leader in Shampoos Skin Care Products Color Cosmetics Deodorants and Fragrances
In Foods and Beverages HUL remains the undisputed market leader in Tea Processed Coffee Branded Wheat Flour Tomato Products Ice Cream Jams and squashes
In New Ventures the new entrants are in Healthcare Confectioners and Network Marketing
HUL is also one of the countryrsquos biggest exporters and has earned the distinction of a Super Star Trading House Its Exports Division is a net foreign exchange earner Among the Exports are branded Soaps and Detergents Personal Products Tea amp Coffee Basmati Rice Castor Oil and its Derivatives
36 THE BRANDS
The formulation of branding strategies starts from the building a sustainable brand for the
company This is so as the consumers buy the brand not only for the intrinsic values
associated with it but also because of the promise that branding makes to the
consumerhellipthe promise of delivering values beyond expectation A framework is
suggested below for the formulation of a brand strategy-
1 Experiential marketing
The first component of branding strategy is the experiential marketing It is a well known
fact that the customers demand experiences instead of products or services This creates a
challenge to the organizations to find new ways to involve the customers in the value
chain so that they themselves can decide the product features and uniqueness that they
expect from the brand They want to know more about the details of the brand They
remove the shells and get into the core of the processes to understand the real value of the
brand Hence such a strategy should be framed that makes the consumers involvement
higher
2 Effective Branding
It is found that effective branding involves working on four important dimensions
namely
bull The Functional Dimension- The functional dimension concerns the perception of
benefit of the product or service associated with the brand
bull The Social Dimension- The Social Dimension concern the ability to create
identification with the group
bull The Spiritual Dimension- The Spiritual Dimension is the perception of global or
local responsibility
bull The Mental Dimension- The Mental Dimension is the ability to support the
individual mentally
3 Novel Brand Strategies
bull Customers Own the Brand- It should always be kept in mind that it is the consumers
who own the brand
bull Product Service- A sale should never be considered the ending of a transaction but the
beginning of a beautiful relationship Customer service basically creates a positive effect
on the minds of the customer and this positive influence on the mind of the consumer
makes them more open to new ideas and reduces their skeptic towards the brand
bull Buzz Marketing- The development in the technology used in the country has lead to
the increased importance paid to the concept of buzz marketing Branding increasingly
nowadays is moving into Internet-based applications
bull Religious Branding- since it is considered that religion has the power to bind people
and unify them under one common ideal an effective brand strategy must take into
account this powerful force which plays on the minds of the Indian consumers
4 Feedback and Improvements
It is very crucial to have the consumer participation In order to succeed in the long run it is crucial to allow the consumer participation at an intermediary stage of developing the product This will lead to creation of a better relationship between the company and its consumer
MARKETING STRATEGIES
Hindustan Unilever Limited has adopted a four pronged growth strategy -
1 Gunning the market with new products and brand extensions
2 Expansion of the distribution network to small towns for extensive
availability
3 Reduce prices and introduce smaller packages for products to
make them more affordable (a tool to enter price sensitive markets)
4 Focus on employ training and develop a positive attitude through
enhanced manpower development
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
Environmental product claims in advertising promotional material and on
packaging are in accordance with legal requirements based on solid scientific
evidence and used in a serious and reasonable manner
Our aim is to minimize wastage in communication publicity and promotional
material in particular through more precise targeting of marketing activities
Consumer promotions and merchandising material such as consumer offers in store
promotions display material leaflets printed matter etc take environmental aspects
into account
This means due consideration of environmental impact in selecting both materials
and printing methods
In distribution energy efficient and pollution controlled methods are encouraged
wherever possible
Legislation and Regulations
It is the policy of the HUL to strictly comply with all laws and regulations
relevant to our activities We participate in discussions on food legislation and
regulations between international organizations government representatives industry
the scientific world and consumer associations We also apply this policy to
environment related matters
In doing so we cooperate with legislators through local industry associations in
order to promote laws and regulations in the field of environment which are
reasonable rational realistic applicable and enforceable We oppose unjustified bans
and any other discriminatory measures
35 BUSINESS CATEGORIES
HULrsquos purpose is to meet the everyday needs of people everywhere This vision has made HUL Indiarsquos largest Packaged Mass Consumption Goods Company with leadership in Home and Personal Care Products and Foods and BeveragesIt is the countryrsquos largest marketer of Soaps Detergents and Household Care productsIts expertise in Personal Products makes it the leader in Shampoos Skin Care Products Color Cosmetics Deodorants and Fragrances
In Foods and Beverages HUL remains the undisputed market leader in Tea Processed Coffee Branded Wheat Flour Tomato Products Ice Cream Jams and squashes
In New Ventures the new entrants are in Healthcare Confectioners and Network Marketing
HUL is also one of the countryrsquos biggest exporters and has earned the distinction of a Super Star Trading House Its Exports Division is a net foreign exchange earner Among the Exports are branded Soaps and Detergents Personal Products Tea amp Coffee Basmati Rice Castor Oil and its Derivatives
36 THE BRANDS
The formulation of branding strategies starts from the building a sustainable brand for the
company This is so as the consumers buy the brand not only for the intrinsic values
associated with it but also because of the promise that branding makes to the
consumerhellipthe promise of delivering values beyond expectation A framework is
suggested below for the formulation of a brand strategy-
1 Experiential marketing
The first component of branding strategy is the experiential marketing It is a well known
fact that the customers demand experiences instead of products or services This creates a
challenge to the organizations to find new ways to involve the customers in the value
chain so that they themselves can decide the product features and uniqueness that they
expect from the brand They want to know more about the details of the brand They
remove the shells and get into the core of the processes to understand the real value of the
brand Hence such a strategy should be framed that makes the consumers involvement
higher
2 Effective Branding
It is found that effective branding involves working on four important dimensions
namely
bull The Functional Dimension- The functional dimension concerns the perception of
benefit of the product or service associated with the brand
bull The Social Dimension- The Social Dimension concern the ability to create
identification with the group
bull The Spiritual Dimension- The Spiritual Dimension is the perception of global or
local responsibility
bull The Mental Dimension- The Mental Dimension is the ability to support the
individual mentally
3 Novel Brand Strategies
bull Customers Own the Brand- It should always be kept in mind that it is the consumers
who own the brand
bull Product Service- A sale should never be considered the ending of a transaction but the
beginning of a beautiful relationship Customer service basically creates a positive effect
on the minds of the customer and this positive influence on the mind of the consumer
makes them more open to new ideas and reduces their skeptic towards the brand
bull Buzz Marketing- The development in the technology used in the country has lead to
the increased importance paid to the concept of buzz marketing Branding increasingly
nowadays is moving into Internet-based applications
bull Religious Branding- since it is considered that religion has the power to bind people
and unify them under one common ideal an effective brand strategy must take into
account this powerful force which plays on the minds of the Indian consumers
4 Feedback and Improvements
It is very crucial to have the consumer participation In order to succeed in the long run it is crucial to allow the consumer participation at an intermediary stage of developing the product This will lead to creation of a better relationship between the company and its consumer
MARKETING STRATEGIES
Hindustan Unilever Limited has adopted a four pronged growth strategy -
1 Gunning the market with new products and brand extensions
2 Expansion of the distribution network to small towns for extensive
availability
3 Reduce prices and introduce smaller packages for products to
make them more affordable (a tool to enter price sensitive markets)
4 Focus on employ training and develop a positive attitude through
enhanced manpower development
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
35 BUSINESS CATEGORIES
HULrsquos purpose is to meet the everyday needs of people everywhere This vision has made HUL Indiarsquos largest Packaged Mass Consumption Goods Company with leadership in Home and Personal Care Products and Foods and BeveragesIt is the countryrsquos largest marketer of Soaps Detergents and Household Care productsIts expertise in Personal Products makes it the leader in Shampoos Skin Care Products Color Cosmetics Deodorants and Fragrances
In Foods and Beverages HUL remains the undisputed market leader in Tea Processed Coffee Branded Wheat Flour Tomato Products Ice Cream Jams and squashes
In New Ventures the new entrants are in Healthcare Confectioners and Network Marketing
HUL is also one of the countryrsquos biggest exporters and has earned the distinction of a Super Star Trading House Its Exports Division is a net foreign exchange earner Among the Exports are branded Soaps and Detergents Personal Products Tea amp Coffee Basmati Rice Castor Oil and its Derivatives
36 THE BRANDS
The formulation of branding strategies starts from the building a sustainable brand for the
company This is so as the consumers buy the brand not only for the intrinsic values
associated with it but also because of the promise that branding makes to the
consumerhellipthe promise of delivering values beyond expectation A framework is
suggested below for the formulation of a brand strategy-
1 Experiential marketing
The first component of branding strategy is the experiential marketing It is a well known
fact that the customers demand experiences instead of products or services This creates a
challenge to the organizations to find new ways to involve the customers in the value
chain so that they themselves can decide the product features and uniqueness that they
expect from the brand They want to know more about the details of the brand They
remove the shells and get into the core of the processes to understand the real value of the
brand Hence such a strategy should be framed that makes the consumers involvement
higher
2 Effective Branding
It is found that effective branding involves working on four important dimensions
namely
bull The Functional Dimension- The functional dimension concerns the perception of
benefit of the product or service associated with the brand
bull The Social Dimension- The Social Dimension concern the ability to create
identification with the group
bull The Spiritual Dimension- The Spiritual Dimension is the perception of global or
local responsibility
bull The Mental Dimension- The Mental Dimension is the ability to support the
individual mentally
3 Novel Brand Strategies
bull Customers Own the Brand- It should always be kept in mind that it is the consumers
who own the brand
bull Product Service- A sale should never be considered the ending of a transaction but the
beginning of a beautiful relationship Customer service basically creates a positive effect
on the minds of the customer and this positive influence on the mind of the consumer
makes them more open to new ideas and reduces their skeptic towards the brand
bull Buzz Marketing- The development in the technology used in the country has lead to
the increased importance paid to the concept of buzz marketing Branding increasingly
nowadays is moving into Internet-based applications
bull Religious Branding- since it is considered that religion has the power to bind people
and unify them under one common ideal an effective brand strategy must take into
account this powerful force which plays on the minds of the Indian consumers
4 Feedback and Improvements
It is very crucial to have the consumer participation In order to succeed in the long run it is crucial to allow the consumer participation at an intermediary stage of developing the product This will lead to creation of a better relationship between the company and its consumer
MARKETING STRATEGIES
Hindustan Unilever Limited has adopted a four pronged growth strategy -
1 Gunning the market with new products and brand extensions
2 Expansion of the distribution network to small towns for extensive
availability
3 Reduce prices and introduce smaller packages for products to
make them more affordable (a tool to enter price sensitive markets)
4 Focus on employ training and develop a positive attitude through
enhanced manpower development
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
expect from the brand They want to know more about the details of the brand They
remove the shells and get into the core of the processes to understand the real value of the
brand Hence such a strategy should be framed that makes the consumers involvement
higher
2 Effective Branding
It is found that effective branding involves working on four important dimensions
namely
bull The Functional Dimension- The functional dimension concerns the perception of
benefit of the product or service associated with the brand
bull The Social Dimension- The Social Dimension concern the ability to create
identification with the group
bull The Spiritual Dimension- The Spiritual Dimension is the perception of global or
local responsibility
bull The Mental Dimension- The Mental Dimension is the ability to support the
individual mentally
3 Novel Brand Strategies
bull Customers Own the Brand- It should always be kept in mind that it is the consumers
who own the brand
bull Product Service- A sale should never be considered the ending of a transaction but the
beginning of a beautiful relationship Customer service basically creates a positive effect
on the minds of the customer and this positive influence on the mind of the consumer
makes them more open to new ideas and reduces their skeptic towards the brand
bull Buzz Marketing- The development in the technology used in the country has lead to
the increased importance paid to the concept of buzz marketing Branding increasingly
nowadays is moving into Internet-based applications
bull Religious Branding- since it is considered that religion has the power to bind people
and unify them under one common ideal an effective brand strategy must take into
account this powerful force which plays on the minds of the Indian consumers
4 Feedback and Improvements
It is very crucial to have the consumer participation In order to succeed in the long run it is crucial to allow the consumer participation at an intermediary stage of developing the product This will lead to creation of a better relationship between the company and its consumer
MARKETING STRATEGIES
Hindustan Unilever Limited has adopted a four pronged growth strategy -
1 Gunning the market with new products and brand extensions
2 Expansion of the distribution network to small towns for extensive
availability
3 Reduce prices and introduce smaller packages for products to
make them more affordable (a tool to enter price sensitive markets)
4 Focus on employ training and develop a positive attitude through
enhanced manpower development
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
bull Buzz Marketing- The development in the technology used in the country has lead to
the increased importance paid to the concept of buzz marketing Branding increasingly
nowadays is moving into Internet-based applications
bull Religious Branding- since it is considered that religion has the power to bind people
and unify them under one common ideal an effective brand strategy must take into
account this powerful force which plays on the minds of the Indian consumers
4 Feedback and Improvements
It is very crucial to have the consumer participation In order to succeed in the long run it is crucial to allow the consumer participation at an intermediary stage of developing the product This will lead to creation of a better relationship between the company and its consumer
MARKETING STRATEGIES
Hindustan Unilever Limited has adopted a four pronged growth strategy -
1 Gunning the market with new products and brand extensions
2 Expansion of the distribution network to small towns for extensive
availability
3 Reduce prices and introduce smaller packages for products to
make them more affordable (a tool to enter price sensitive markets)
4 Focus on employ training and develop a positive attitude through
enhanced manpower development
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
Hindustan Unilever Limited is Indiarsquos largest Fast Moving Consumer Goods Company (FMCG) It is the leader in Home and Personal Care Products and Foods and Beverages
It seeks to ldquomeet everyday needs of people everywhere ndash to anticipate the aspirations of its consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of liferdquo
It is the purpose which inspires HUL to build brands Over the past 70 years HUL has introduced about 110 brands most of which have become household names in the country
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
Source httpthe-next-marketing-gurublogspotcom
HOME amp PERSONAL CARE PRODUCTS
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
Fair amp Lovelyrsquos skin-lightening technology is known to be the best in the world However this hasnrsquot stopped the brand from innovating further to pioneer the development of cutting-edge fairness solutions
Fair amp Lovelyrsquos brand-essence of lsquoRescripting Destinyrsquo has played a decisive role in its noteworthy presence in over 30 countries Today 250 million consumers across the globe strongly connect with Fair amp Lovely as a brand that stands for ldquobeauty that empowers a woman to change her destinyrdquo The brandrsquos commitment towards empowering women has inspired the initiation of Fair amp Lovely Foundation Time after time the foundation initiates various education amp employment-related programs that give underprivileged women the power to overcome all barriers amp change their lives
ldquoLakme is the Indian womanrsquos Beauty Sutrardquo ndash inspiring expression of her unique beauty and sensualityIndian cosmetic Lakme was started in 1952 famously because the then Prime Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange on beauty products and personally requested JRD Tata to manufacture them in India Simone Tata joined the company as director and went on to become its chairman In 1998 Tata sold off their stakes in Lakmeacute Lever to HLL for Rs 200 Crore (45 million US$) and went on to create Trent and Westside Even today when most multinational beauty products are available in India Lakme still occupies a special place in the hearts of Indian women
Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman They help the Indian woman in expression of her best self ndash sensual original expressive alive and intuitive
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
Lakme inspires her to unleash the potency of her femininity beauty and sensuality
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gums
Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care needs Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth fresh breath and healthy gumsPepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
Sparkling white - clean clothes not only help us form great impressions on the people we meet but also provide us confidence to realize our ambitions Rin understands this need and strives to deliver best in class whiteness through continuous innovation and product improvements
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic Rin powder was launched in 1994 as Rin Power White Rin Matic for washing machines launched in July 2008 Sold in developing markets in Africa Asia and Latin America Sold as Brilhante (Brazil) Rin (India) and under other local brand names
The Sunsilk hair care range provides a complete hair care solution and functions as a 3-step combination of cleansing nourishing and manageability that gives a 20 something girl the confidence to express herself
The new Sunsilk range comprises of the following variants to suit your hair type
Sunsilk Thick amp long shampoo amp conditioner Make your hair look thicker as it grows longer with nourishing yoghurt protein energisers
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
Sunsilk soft and smooth shampoo amp conditioner Turn rough dry hair to soft smooth hair from the 1st wash with almond oil energisers
Sunsilk hairfall solution shampoo amp conditioner Ginseng amp soya energisers boost hair strength to visibly reduce hairfall due to breakage
Lux stands for the promise of beauty and glamour as one of Indias most trusted personal care brandsLux has always believed in taking up ground-breaking endeavors and has always enjoyed venturing with various brand associations be it a lsquoCoffee Table Bookrsquo or lsquoA Lux Couture Showrsquo at the Lakme Fashion Week or coming up with a lsquoChocolate seduction soaprsquo The new Lux Strawberry amp Cream and Lux Peach and Cream have a stronger fragrance creamier lather and moisturizing beauty oils which makes your skin soft and smooth ldquoSkin noticeably softer and perfumed likerdquo
Today the brand is still heavily advertised in India using Bollywood stars Madhubala Mala Sinha Hema Malini Sridevi Madhuri Dixit Juhi Chawla Karisma Kapoor Rani Mukerji Amisha Patel Kareena Kapoor and Tabu have all been past brand ambassadors Aishwarya Rai Priyanka Chopra and Katrina Kaif are the present brand ambassadors of Lux
FOODS amp BEVERAGES
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale As the ice-cream industry exploded in India in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back The Indian consumer market was introduced to ldquoKWALITY WALLSrdquo ndash the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality Though the two giants eventually parted ways the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market Today Kwality is not just a brand ndash it is the ice-cream associated with the Indian summer itrsquos the first choice in ice-cream for any child or adult during the scorching Indian summers Kwality ice-creams are trusted not only for their rich creamy flavours but also for their trusted quality and nutritious food value
Kwality Wallrsquos the brand with a big heart offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians ndash kids teens and adults We do so with our very popular brands - Cornetto Feast Paddle Pop Selection amp our award winning parlour concept Swirlrsquos
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Kissan is Indias leader in quality-assured jamsjellies Kissan Mixed Fruit Spread is a delicious combination of fine fruit The medley of different flavors create a unique fruity experience that can be enjoyed in so many ways Liven up your toast or bagel enjoy with hot parathas make a great milkshake or put a dollop on ice cream for a sundaeants to be the brand which will help dissolve tension between mother and the family during informal good food moments
Kissan acts as a catalyst easing stressful moments at the dining table With Kissan good food is loved not shoved
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
Some moments in life are special and close to the heart Bru makes these moments with loved ones even more magicalhellipIts Indiarsquos largest coffee brand that offers a range of products in Instant coffee Conventional coffee and premixesIts rich aroma and unique blend makes every moment come alivehellip
Hindustan Unilever has extensive variety of products in diverse field like nutrition hygiene and personal care with varied brands Hindustan Unilever offers Bru Coffee has been instrumental in virtually creating the entire Instant Coffee category as it exists today It has been at the forefront of most innovations in theInstant Coffee category ndash whether in coffee ndash chicory blends refill packaging vending operations or more recently the Low ndash unit ndash price packs
37 FINANCIAL STATUS OF HINDUSTAN UNILEVER LIMITED
Annual results in brief
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
Mar 10 Mar 09 Dec 08 Dec 07 Dec 06
Sales 1772533 2060156 1666038 1371775 1210339
Operating profit 274997 304019 244387 188570 164806
Interest 698 2532 -16218 2550 1074
Gross profit 289110 322042 260605 232288 199184
EPS (Rs) 1009 1145 964 883 841
This table shows that HULrsquos financial position has been improving every year In March 2010 HULrsquos sales have been 1772533 crores HUL is capturing a big share in the market
Source httpthe-next-marketing-gurublogspotcomHindustan Unilever Limited captures a wide share in the market as compared to the competitiors
38 PROBLEMS FACED BY HUL
There are some problems which are being faced by Hindustan Unilever Limited
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
Heavy competition from emerging players like Procter amp Gamble will result in higher advertising cost
Not having proper space for display of products by retail stores Not providing proper distribution amp inventory by the middle person which
shifts the demand of consumer to another companyrsquos products Not handling the buyers of HULrsquos product efficiently this directly affects
the goodwill of the company Unethical trade practices adopted by retail stores or convenience stores to
own profits
CHAPTER - 4
HAIR CARE
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
41 Sunsilk - the hair expert
42 Procter amp Gamble - The Rival
43 Pantene
44 Comparison of Sunsilk amp Pantene
41 SUNSILK - THE HAIR EXPERT
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
Launched in 1964 Sunsilk is the largest beauty shampoo brand in the country Positioned as the lsquoHair Expertrsquo Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results The different variants of Sunsilk ndash Black Shine ( for dull hair ) Bouncy Volume ( for thin short hair ) Silky Strength ( for dry hair ) and Natural Nourishment ( for regular oiled hair) ndash are based on well ndash researched consumer needs and hair types
The benefits are more compelling and relevant since the variants are harmonized in terms of the product mix ndash fragrance color and ingredients are all well linked to cue the overall synergy The range comes in premium packaging and design The accent is on femininity as captured in the tagline ndash lsquo Baalon mein dhadkan dil mein shararatrsquo
Sunsilk was extended to hair colourants in June 2001 The colorants are available in 7 variants that are specially suited to Indian hair and skin tones and color hair gently and safely
HAIR TYPE VARIANT COLOR OF SUNSILK
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
For Normal Hair Bio proteins from vegetable extracts
Yellow
For Dry Hair Essential oils from flower extracts
Pink
For hair needing body and volume
Fruitamins ndash vitamins from fruits
Green
For black hair Melanin from plant extracts Black
For Oily Hair Active nutrients from Citrus extracts
Orange
For split ends Ceramides ndash Hairrsquos natural cement
Purple
In 2008 Sunsilk India launched a social networking site called Gang of Girls which offered it user access to a variety of local and global experts to address various hair care needs through its content blogs and live chat room The site includes rich content of hair care and fashion and users can also take part in interactive games and quizzes
From 2009 Sunsilk started working with a number of professional hair experts to develop new and improved products Each hair ldquoissue variant links to an expertrdquo with the relevant specialist hair knowledge For example Dr Francesca Fusco a New York dermatologist co-created a ldquohairfallrdquo variant for the brand The line up also includes Jamal Hammadi for Black Shine Rita Hazan for Vibrant Colour Teddy Charles for Plumped Up Volume Thomas Taw for Damage Reconstruction Ouidad for Defined Curls and Yuko Yamashita ( known for Japanese hair straightening ) for Perfect Straight
Sunsilk introduces lsquo Sunsilk Pro-Conditionerrsquo
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
Sunsilk has extended its portfolio to conditioners with the introduction of Sunsilk Pro-Conditioner New Sunsilk Pro-Conditioner with Nutra- C and Lotus Flower extracts prevents hair damage by protecting it from the drying effects of the sun rays and strengthens each hair strand to make it soft and silky Priced at Rs 50 for 100 ml bottles and Rs 250 for 8 ml sachets the product will be available across the country With the launch of Pro-Conditioner Sunsilk has strengthened its hair care product range which already includes four- shampoo variants ndash Sunsilk Black Shine Sunsilk Silky Strength Sunsilk Natural Nourishment and the latest Sunsilk moisturizing anti ndash dandruff shampoo
42 PROCTER amp GAMBLE - THE RIVAL
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
Procter amp Gamble Hygiene and Health Care Limited is one of Indiarsquos FMCG Companies with a wide range of products in the Healthcare Haircare Laundry ( Detergents ) Feminine Protection and Personal Care categories Over the last few years the Company has carved out a reputation for delivering high quality value added products to meet the needs of customers The Company holds the unique distinction of owning Vicks ndash Indiarsquos Number One brand This brand over 100 years old and leading edge technology brands such as Whisper Head amp Shoulders Pantene and Ariel are ensuring that the Company is an integral part of Indian consumerrsquos lives
The Company prides itself on being a good employer in keeping with the global commitment that Procter amp Gamble has made to attract and recruit the finest people in the world building the organization
In 2008 Procter amp Gamble reiterates its commitment to make every day in the lives of its stakeholders better through the quality of its products and the sincerity of its services
43 PANTENE
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
In September 2001 P amp G launched the new range of Pantene Pro- V in India which gives consumers five end ndash looks for their hair Smooth amp Silky Volume amp Fullness Balanced Clean and Anti- Dandruff With new Pantene consumers can now avail of the ldquo end lookrdquo they desire for their hair while keeping it healthy and shiny The range of New Pantene Pro ndash V is an outcome of a global Pantene Hair Misdiagnosis Research which revealed that women across the world including India are dissatisfied with the way their hair looks
New Pantene Pro ndash V is a solution to this hair ndash misdiagnosis and the subsequent dissatisfaction with current hair because New Pantene Pro ndash V focuses on hair solutions rather than hair problems
The five variants of New Pantene Pro V deliver the following distinct end ndash looks
Smooth amp Silky for Straighter hair Contains Smoothing Pro ndash Vitamin B5 which straightens hair the end look being healthy straight looking hair
Volume amp Fullness for Thicker hair Contains Volumizing Pro ndash Vitamin B5 which adds elasticity to hair imparting a healthier fuller and bouncier feel to their hair
Balanced Clean for Shinier hair Contains Pro ndash Vitamin B5 formula which restores and maintains natural hair moisturizing for the shiny and healthy hair look
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
Lively Clean for Livelier hair Contains pure gentle cleansers which convert dull weighted down and oily hair to clean fresh and healthy hair that remain free ndash flowing through out the day
Anti ndash Dandruff for Dandruff ndash free hair Contains new nourishing Pro ndash Vitamin B5 formula which doubles the strength of the hair follicles and renders the scalp dandruff ndash free The end look being healthy and dandruff ndash free
Introducing the new Pantene Long Black for the long amp black hair look PampG recently launched Pantene Long Black in July 2010 The newly launched Pantene Long Black with its patented Pro ndash Vitamin Moist Black formula darkens each strand of hair uniformly from root to tip through intense moisturisation reduces hair damage at the ends and enables women to keep their hair longAll six Pantene variants are available in 200 ml 100 ml and 75 ml sachets
PANTENErsquoS 10 WAYS TO BETTER HAIRCARE
Know your hair type Normal hair looks strong and healthy dry hair tangles easily and is inelastic coarse and very prone to damage oily hair is greasy limp and tends to be on the finer side Mixed condition hair is characterized by dry hair coupled with an oily scalp There is Pantene shampoo for every kind of hair
Shampoo your hair Shampooing your hair cleans your hair restores vitality and helps to make it shine Frequent shampooing is good for your hair It is a myth completely untrue that regular shampooing damages the hair
Use a shampoo and conditioner like Pantene Pantene is a shampoo and conditioner in one A conditioner smoothens uneven cuticles leaving your hair smooth and silky A shampoo and conditioner is just what your hair needs Such a shampoo contains positive and negative ones stay behind to protect your hair
Dry your hair carefully Begin with removing as much moisture as possible by patting it dry with a towel Never rub vigorously If you use a blow dryer keep it at least 10 cm away from your hair
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
Finally when combing your hair itrsquos better to use a wide ndash toothed comb
44 COMPARISON OF SUNSILK AND PANTENE
SUNSILK
launched in 1964
first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
Sunsilk has 10 variants of shampoo with 7 variants of hair colorants
Sunsilk was the first to launch two in one shampoo plus conditioner
PANTENE
launched not too long back in 2001
Pantene has 6 variants of shampoo but no coloran1 Sunsilk was launched in 1964 whereas Pantene was launched not too long
back in 2001
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
2 Sunsilk was the first shampoo to offer variants by hair ndash types eg dull hair normal hair oily hair hair with split ends
3 Today Sunsilk has 10 variants of shampoo with 7 variants of hair colorants whereas Pantene has 6 variants of shampoo but no colorants
4 Sunsilk was the first to launch two in one shampoo plus conditioner
CHAPTER - 5FINDINGS AND ANALYSIS
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
1 HUL is an umbrella which has many products under it Their product line includes from personal wash hair care deodorants cosmetics tea coffee etc Among all other competitors offering the same product the largest share in the market is captured by Hindustan Unilever Limited
2 Sales are very important for any company to survive in the market There are several factors that add to the sale of any product These include brand image easily reachable quality packaging discounts benefits which directly affects the sales figure of the company If these factors are not fulfilled properly it can cause even loss to the company 30 says that itrsquos the quality which affects more the sale of HUL product So proper care should be taken for these factors
3 HULrsquos rate of performance in both product wise and price wise has been improving year after year 40 retailers said that HULrsquos performance is excellent 50 said it is good and 10 said average
4 In every market customerrsquos feedback matters a lot Customers are those for whom the products are made Their feedback towards products is very important It is very important that they should be fully satisfied because ultimately the goods are being purchased by them Customerrsquos response is rated as excellent good average and poor40 of customers feel that HULrsquos product are excellent in quality 35 feel that they are good and 25 feel average about HULrsquos performance
REASONS FOR CUSTOMERS PREFERENCE TOWARDS HUL THAN OTHER BRANDS -
25 AVG
35 GOOD
40 EXCELLENT
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
Main reason to have HULrsquos brand among the retailers is Schemes Most of the retailers have this brand due to schemes and price amp quality of the productsVery effective price and quality are affected to absorb that HULrsquos product among the retailers
Price Quality Of Product Schemes Variety
55 20 60 45
REASONS FOR PREFERENCE TO SELL HULrsquoS PRODUCTS OVER OTHER BRANDS -
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
Main reason to sell HULrsquoS Products over other brands is the schemes
provided by the company over other brands
Sometimes the company provides the schemes which are very preferable to the
Retailers
Margin Promotional Schemes Demand Variety
60 45 55 20
CHAPTER - 6
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
CONCLUSIONS
Most of the people in India are aware of Hindustan Unilever Ltd because of some product or the other only a handful people of backward area are ignorant of itFast selling products of HUL are the Skin Care Oral Care Hair Care Color Cosmetics amp Ice ndash Creams of HUL
The major reason for preference of HULrsquos products over others is their superiority in quality in addition to the reasonability of price
Mass availability and widespread awareness are other points in favor of HUL
Hair care products of HUL are considered safe and reliable Hair serums and sprays are still not very popular in the market
The personal care and the Popular Food products of HUL do not get much attention of the customers
The major competitors of HUL are Procter amp Gamble Colgate Palmolive Reckitt amp Coleman
SUGGESTIONS
Proper marketing is required in case of personal care products and food products of HUL
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
The professional hair care products and styling products need to be distributed properly And the awareness regarding these products ie technique to use side ndash effects precautions while using etc should be spread properly
Innovations in the field of variants of hair care products should be made Leave on conditioners should be introduced
Creating mass awareness about hair care can be a major step towards capturing consumer attention The company should emphasize on promoting mild shampoos for daily hair care too
Marketing strategy for giving healthy competition to its rival companies is required
CHAPTER - 7
71 LIMITATIONS
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
Time was really a limiting factor for the project Itrsquos really difficult to work out
such a large project
All the data that has been collected for this project has been taken from secondary
sources like websites magazines newspapers and book
Since the organization has strict control it acts as another barrier for getting data
I made my best efforts in conducting the research but might have lacked
somewhere because of expertise in making the professional project first time
There may be not updated data available on the websites so it is another a
limitation of the project
72 BIBLIOGRAPHY
a) wwwhulcom
b) wwwpampgcom
c) wwwbusinessStandardcom
d) The Economic Times ndash issue dated September 18 2010
e) Financial Expressf) Business world
g) Business Standard
h) Outlook
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659
1048658104865810486581048658104865810486581048658104865810486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659104865910486591048659