Minor Project Final Draft Submitted

8/11/2019 Minor Project Final Draft Submitted

1/71

1

A project report

On

THE ANALYSIS OF GO GREEN CONCEPT FOLLOWED BY FMCGS

Submitted in the partial fulfilment of degree of bachelors of business administration

(2013-2016)

UNDER THE GUIDANCE OF

Ms Jyoti Gupta

Assistant professor, RDIAS

Submitted by

Suhani Mehta

00915901713

BBA semester III

INSTITUTE OF ADVANCED STUDIES

NAAC accredited, A grade

Category A+ institute, an ISO 9001:2008 certified institute

(Approved by AICTE, ministry of HRD, govt. of India)

Affiliated to guru Gobind Singh Indraprastha University, Delhi

2A &2B, Madhuban Chowk, Rohini, delhi-110085

Phone no.: 011-27867301 fax: 011- 27867212

E-mail: [email protected] , website: www.rdias.ac.in

Member of AMDISA, AIMA, CSI

RUKMINI DEVI
mailto:[email protected]:[email protected]:[email protected]://www.rdias.ac.in/http://www.rdias.ac.in/http://www.rdias.ac.in/http://www.rdias.ac.in/mailto:[email protected]


2/71

2

STUDENTS DECLARATION

This is to certify that I have completed the project titled MINOR

PROJECT under the guidance of Ms Jyoti Gupta in partial fulfilment

of degree of bachelors of business administration from Rukmini Devi

Institute of Advanced Studies, New Delhi.

This is the original work and I havent submitted it earlier elsewhere.

Suhani Mehta

00915901713

BBA semester III


3/71

3

CERTIFICATE OF GUIDE

This is to certify that report entitled The analysis of go green conceptin the FMCG sector which is submitted by Suhani Mehta in partial

fulfilment of the requirement for the award of degree of bachelors of

business administration at GGSIPU , Kashmiri gate, Delhi is a record of

the candidate own work carried out by her under my supervision. The

matter embodied in this is original and has not been submitted for the

award of any other degree

Ms Jyoti Gupta

Assisstant Professor, RDIAS


4/71

4

ACKNOWLEDGEMENT

I take this opportunity to convey my sincere thanks and gratitude to all

those who have directly or indirectly helped and contributed towards the

completion of this project. First and foremost, I would like to thank Ms

Jyoti Gupta , for her consistant guidance and support throughout this

project. I would also like to thank the people who helped me analyse the

questionnaires and also for the discussions that we had with them. All

these have resulted in the enrichment of our knowledge and their inputs

have helped us to incorporate relevant issues into our project. During the

project, we realized that the degree of relevance of the learning being

imparted in the class is very high. The learning enabled us to get a better

understanding of the nitty-gritty of the subject which we studied. Last but

not the least we would like to thank God and our parents for their

cooperation and help.

A very hearty thanks to all those helped in the success of the project.


5/71

5

TABLE OF CONTENTS

S.NO. TOPIC PAGENO.

1

CHAPTER 1

PLAN OF THE STUDY

Introduction to the topic

Objective of the study

Literature review

2CHAPTER 2

COMPANY PROFILE

3

CHAPTER 3

RESEARCH METHODOLOGY

Universe and sources of data

Sample size (proper justification)

Method of data collection testing ofquestionnaire

4

CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

Questionnaire

5CHAPTER 5

FINDING AND CONCLUSION

6CHAPTER 6

SUGGESTIONS AND RECOMMENDATIONS 67-69

7 BIBLIOGRAPHY 70

8 ANNEXURES 71-72


6/71

6

CHAPTER 1

PLAN OF THE STUDY


7/71

7

1.1 INTRODUCTION TO THE TOPIC:

Consumers say they increasingly prefer to purchase products that are free of toxins,

produced with a minimum of pollution, and with a minimal environmental impact.

But in many cases a significant gulf exists between consumers g reen claims and their

actual purchasing power, mainly driven by the price difference of green products .

Companies that successfully adopt a green policy can generate profits, provide

positive social impact, and reduce environmental impact.

Growing pressure from non-governmental organisations (NGOs) and activists.

Greenpeace for instance publishes a digital Guide to Greener electronics. The

guide ranks the 18 top manufacturers of personal computers, mobile phones, TVs and

games consoles according to their policies on toxic chemicals, recycling and climate

change.

The media notices companies that show their green stripes . Positive publicity for

going green is not reserved for large companies. Companies taking voluntary steps

to become greener will gain visibility, earn credibility, and develop a reputation for

leadership.

Employee loyalty and retention are less tangible, but equally important benefits togoing green. A sincere sustainability strategy will help your company attract top

talent.

Last but not least, many supply chains have already been affected by physical and

economic impacts of the changing climate and growing demand from Asia. These

include global shortages of water, grain, timber, and metals. Improving all forms of

resource efficiency lessens exposure to these risks.

What is Go Green?

Going Green refers to an individual action that a person can consciously take to

reduce harmful effects on the environment through consumer habits, behaviour,

and lifestyle . This can be attained by using green products and services.

A green product or service is one that delivers comparable or superior performance,

utility, or other benefits to a non-green alternative .


8/71

8

It utilizes fewer resources, contains fewer toxic materials, and/or boasts a longer

lifecycle.

DEFINITION OF GO GREEN CONCEPT:

Going green is a popular term used to describe the process of changing one's lifestyle

for the safety and benefit of the environment. People who "go green" make decisions

about their daily lives while considering what impact the outcome of those decisions

may have on global warming, pollution, loss of animal habitats, and other

environmental concerns.

o There are 3 changes most people make to "go green." They begin sustainable living,

use environmentally friendly (or green) products, and they begin recycling and/or

reusing as many products as possible.

Sustainable living

o Sustainable living involves limiting your use of natural resources and increasing self-

sufficiency. This is usually achieved by altering modes of transportation, conserving

energy, changing one's diet, and buying locally produced items over imported items.

"Green" Products

o Buying and using only environmentally friendly products--such as recycled paper

products, nontoxic household cleaners and personal products, and organic foods--is a

major part of "going green." Green products minimize the damage or harm some

production methods can have on our air, water, soil, animal life, and plants.

Recycling and reusing

o By recycling all that is possible (glass, plastic, paper, metal, leftover food, and grease)and reusing useful items, a person can minimize her waste. This helps decrease the

need for landfill space and conserve energy. Composting plant matter also helps in

these endeavors.


9/71

9

1.2 OBJECTIVES OF THE STUDY:

The purpose of the study is :

To know more about the Go Green practices.

To study the go Green strategies of HUL Ltd.

To study the competitors of HUL Ltd. regarding Go Green

practices.

To study the acceptability of the Go Green concept.

To study Strengths,weaknesses, opportunities and threats of HUL

Ltd.

1.2.1 A Quick Introduction to Green Productivity

Green Productivity (GP) is a strategy for simultaneously enhancing productivity

and environmental performance for overall socio-economic development that

leads to sustained improvement in the quality of human life. It is the combined

application of appropriate productivity and environmental management tools,

techniques and technologies that reduce the environmental impact of an

organization's activities, products and services while enhancing profitability and

competitive advantage.

Having a good green productivity programme -

increases profitability improves health and safety

promotes environmental protection

enhances company image

raises morale

leads to sustainable development


10/71

10

1.2.2 A Quick Introduction to Green Consumerism

Green consumerism creates a balance between the expectations of consumer behaviour andbusinesses' profit motives.

Key issues for the future include:

Health: A sentry lifestyle combined with health impacts of environmental pollution and

emissions, use and abuse of pesticides, anti-biotic etc.

Population and consumption: Population increases, aging populations, consumption

patterns - living beyond means, etc.

Globalization: Trans boundary effect and free trade have both advantages (efficiency,

profits, opportunities, demand) and disadvantages (unemployment, footloose companies,

weaker controls, unfair trade, small scale loses out) etc.

Energy: Every source of energy has an environmental impact. Energy efficiency is not

just technology, but also cutting back. There are enough cars to create a six-lane traffic

jam to the moon.

Water: Water use is increasing at twice the rate of population increase. Much can be done

at the individual level.

Chemicals: Use of pesticides and other hazardous chemicals. PCB? DDT has been found

in mother's milk too! Ozone depleting chemicals, hormone-disrupting chemicals

have long -term effects on human health and well-being.

Natural World: Considerable pressures put on the natural world due to population

increases and rise in consumption. 40% of all plant growth consumed by humans!

Somewhere, something should stop.

Ethics: The treatment of other peoples. Issues of gender, children, animal welfare. Ethics

of cloning, fertility et al.

Fair Trade: Nee to look into working conditions (child labour, low wages, long hours,

lack of safety, mass production v/s craft industries.

Neighbourhoods: Development of a sense of community. Increase in financial wealth,

but also of quality of life. Measure "gross national happiness"!!


11/71

11

Childhood: Loss of 'childhood' due to societal pressures and expectations, knowledge and

The Year 2000 - Creating a future we want:

make intelligent life choices use people power for positive change set clear priorities understand the bigger picture

1.2.3 A Quick Introduction to Green Procurement

A business' green procurement policy should strive to purchase products and

services that have less negative impact on the environment. Environmental

considerations forms part of the evaluation and selection criteria, which could

cover, depending on goods and services to be purchased, their manufacture,transport, packaging and disposal.

"Sustainable Development" was the key concept of the 1992 Earth Summit in Rio, as

governments and international organizations committed themselves to take action to protect the

environment as in integral part of long-term economic development . Environmentally-

responsible consumption and production is seen as an essential part of the strategy to

improve environmental quality, reduce poverty and bring about economic growth , with

resultant improvements in health, working conditions, and sustainability, and is highlighted in

Chapter 4 of Agenda 21.

In many developing countries public procurement of goods and services forms the major part of

government expenditure. Economic activity of such magnitude has far-reaching implications

and governments, international organizations, and donors have a responsibility to take the

environmental impacts of their activities into account.

Since Rio, the response of the private sector has been impressive , with many multinational

organizations developing effective environmental management policies . Green procurement

(also called 'environmentally responsible procurement) is now no longer new to Europe, North

America, and developed countries. The public sector has lagged behind somewhat, although

many local authorities in developed countries have now introduced environment

management systems which include procurement policies.


12/71

12

Two Approaches to Green Procurement

Business has evolved two approaches to integrating environmental considerations into

procurement decisions. These can be termed a "Product Approach", which examines goods and

services and attempts to rate them according to environmental impacts, and a "Supplier

Approach ", which looks at the supplier (preferably a manufacturer or service provider) and rates

the organization as a whole.

Companies employ both approaches with differing degrees of thoroughness . Some devote

considerable resources to environmental "policing", sending environmental auditors to carry out

in-depth examinations of suppliers , operations and supplies , whilst for others it is little more

than a token gesture.

Integration with existing procurement regulations

Green procurement does not seek to re-write the book on procurement, but merely to add an

environmental dimension to the decision-making process. The standard purchasing criteria, of

price, quality and availability, remain paramount. The environmental impacts of a good or

service procured can be seen as part of the "quality" criterion.

Whilst every organization should establish a "de minimums" - a list of items which they will not

purchase, green procurement should not normally be seen as being prescriptive, and restrictive to

procurement staff. There will be occasions where a product's exceptionally competitive price

will be an over-riding factor in a procurement decision, despite negative environmental

factors. On the other hand, there will be occasions where a product's negative environmental

impact, or particular environmental advantage, prove to be decisive in a procurement decision.

The importance of a green procurement policy is that procurement staff are asked to consider

environmental impacts, and are allowed to make decisions accordingly. It can make a significant

difference to an organization's environmental performance , as well as send a powerful

message to businesses that the environment is taken seriously.


13/71

13

1.2.4 A Quick Introduction to Green Labelling

Eco-labelling schemes help consumers make decisions about the products they

buy and whether they are environmentally friendly. There are several existingeco-label schemes around the world including the German Green Spot, the

Nordic Swan and the US Green Seal. Most current eco- label programs are cradle

to grave, that is, they involve some form of analysis based on the environmental

consequences of their manufacture, use and disposal

Eco-labelling makes a form of positive statement that identifies a certain product or service as less

harmful to the environment than other similar products or services.

Eco-labels can cover a range of environmental attributes, which may include health issues,

atmospheric impacts or other environmental impacts, packaging and other industrial issues to

name few. Labels allow consumers to make comparisons among products/services in the category

and essentially vote their preferences in the market when making purchasing decisions.

An eco-label is a graphic symbol and/or a short descriptive text applied on a product, package, or

inserted in a brochure or in another informative document that accompanies the product and offers

information about at least one and at most these environmental impacts generated by the

respective product.

Based on overseas experience, appropriate eco-labelling with associated verification and

certification procedures is a driver for the increased uptake of recycled content and/or sustainable

products. Eco-labels belong to the class of "new environmental policy instruments" (Naples)

together with voluntary agreements, eco-taxes and tradable permits. Eco-labels are

complementary policy instruments relative to traditional regulation but also to other market based

instruments.

Eco-labels may be distinguished by whether they are government sponsored or managed by the

private sector. Currently, there is no universal standard for eco-labels. To date, approximately 28

countries have established national eco-labelling programs. A large number of these are

voluntary. The voluntary, private sponsored labelling scheme do not involve the government and

have two sub-categories: those with criteria imposed by third parties and those based on self-


14/71

14

declaration by manufacturers. Eco-labels may address different types of products, which is the

case of most of the existing eco-labelling schemes, may address the services sector or both.

1.3 Literature review and other theoretical information:

LITERATURE REVIEW OF GO GREEN CONCEPT IN FMCG

Going green has been in the spot light for companies and consumers since the whole

idea of the world coming to an end gave a terrorizing thought to the majority of

people. People are might become prone to purchasing something that is more

ecologically friendly in the hope of keeping our existence going. Companies are

seeing that even with the consumers and laws of conservation pushing them to go

green there is other upsides to this outcome. There are many good tributes to the

world being green, not only the feel that the company and the human kind are doing

their part in the relief of global annihilation but also the money consuming options

that going against nature will no longer be theirs. the go green concept was founded

in 2002 by The Go Green Initiative (GGI) is an environmental

& Stewardship Program located in all 50 states and in 13 countries. It's free to all

schools and operating in pre-schools through universities. I conducted a series of

questions that asked people a multitude of questions on the subject of going green.

First I started with asking them if they (the surveyor) and their family took going

green into an everyday life style. There were two majority answers which were rarely

and sometimes. The next one from those two popular response was not at all and in

last place came yes which meant that out of 11 people that decided to take my survey

only one answered that they take going green seriously. The next question that came

was a short answered question which was what does going green mean to you? In this

case most people put an answer having to do with recycling, global warming and the

saving of the environment. The next one is the one that I found alarming which

was:the last question which I had on the survey was how important do you think

it is for companies and the world to become green . Most responses came back as a

10 which was the highest of importance with only two responses coming back at

under a 5 and the rest over. Questions are being brought to the media for the

companies that before were non environmental oriented and to see what these
http://en.wikipedia.org/wiki/Stewardshiphttp://en.wikipedia.org/wiki/Pre-schoolhttp://en.wikipedia.org/wiki/Pre-schoolhttp://en.wikipedia.org/wiki/Stewardship


15/71

15

companies are going to do about their production methods on how to make it more

environmentally healthy. Simple questions like why is going green important

illustrate a great example of not enough education on this material are being presented

to regular folks. Now when the companies go green questions arise like, is it cost

efficient for them and is it going to be a better result to make a commercial plant

green? Companies sometimes go green because they choose to do their part in the

saving of the environment. Some companies are forced to go to a more green aspect

of production that their previous state due to laws that go into effect that band a

certain amount of pollution. Some companies use the image of being green like a

public relation campaign since they know people that lean the green side will be

more likely to buy a product that is not hurting the environment. A question that

should be being asked is if companies that go green save money by doing so then why

is it that they dont pass on their savings on to the consumers? It seems to be that a lot

of the items that are being brought to use by renewable sources are staying the same

price or still rising. The article by the magazine engineering & technology is

named Counting the costs of going green were it g oes into the account of cost

of a company going green. They show that to make a company green with renewable

sources like wind, water and sun then have to invest money into the company in order

to achieve the system of either wind turbines or water generator or solar photovoltaic

material. They go into the whole cost of how much the bill for making the link up for

the wind farms and end up the total of the end of build. This is an interesting point

that not a lot of consumers think about that was mentioned in the article:

Renewable power is perceived as clean and virtually free by the public. In fact, the

reality is quite different. Though the raw fuel in the form of wind, water or solar are

free, the costs involved of transforming the energy into usable electricity and

delivering it to the customer are not.

Then we got the article Going Greens Unexpected Advantage by the magazine

Business Week. The main point of the article has to do with the fact that going

green does help companies save money in one point or another. Not to bother with

the fact that the government is imposing much stricter laws making them virtually get

to the green stage. You are going to have to go green. The only question is when.

Our recommendation? It is always better to have the breeze at your

back .(Maddock .Vitn) This letting the companies know that it is better to do it on


16/71

16

their own account than having to be forced to do it. Then the go and support the

decision on going green by saying: It can save you a lot of money. Alt hough some

companies still see an eco-friendly overhaul as an added cost of doing business

without any substantial financial benefit, that thinking is, for the most part,

pass. Adding a green tint to your business doesnt have to cost more. This being

said letting the companies know that it doesnt have to be major changes just simple

ones like putting things closer to the consumers so it wont travel that far or even

trying to save resources its all a part on becoming green. The next article was done

by Environmental Health Perspectives and is named Bringing Green Homes within

Reach : Healthier Housing for More People . In this article it shows people that

going green not only falls on big companies but every day houses can be made to

be greener or if building a house be green. With the material on building the house

or even re-modulation this can lead to saving valuable resources . Merely sitting a

house so that the longest walls and largest windows face south (in the Northern

Hemisphere) is the single most important thing a builder can do to keep homes

naturally warm in colder climates .(Schmidt. A27) Showing that simple things that

can be done during construction or during re-modulation can help in a sense of

maintaining a resource down. In the article Going Green on Campus and Saving

Money Using Web Forms done by Community College Week it even shows how it

can save money and troubles to any type of system including a university or college:

The last article I chose was Industry lured by the gains of going green by

Nature . The main millennium assessment report , released in March, stressed that

more than half of the ecosystem services that support human activities are being

tapped in an unsustainable way. The new supplement argues that corporations should

be preparing now for the depletion of those natural services (Gewin. 173 ) This

shows how immensely the human race is consuming natural resources and if

companies dont put a stop to this then its them that are going to have to face the

stricter laws that will be placed in order to keep a balance for the resources.

Going green is in the benefit of everyone in the world. In order for our world to be

able to survive for the generations to come we have to take care and prevent further

destruction of our ecological system. Going green is something that has been around

for decades but know in our time is where companies have to shine and come out with

actions that will change the view of the consumer . Change it to the point where they


17/71

17

see that green is good and safe and reliable. For the good of humanity and for the

good of plainly everything that inhabits this earth, going green will be the beginning

of the remedy.


18/71

18

CHAPTER 2

COMPANY PROFILE


19/71

19

INTRODUCTION

IN INDIA FMCG is the 4th largest sector in Indian economy with a market size ofmore than $13.1 bn. And expected to become $33.4bn in 2015.200 million people are

expected to shift towards processed food. India needs Rs 28bn investment in food

sector. In the recession period FMCG industry recorded a growth of 14.5%.

Hindustan UniLever Limited (HUL) is India's largest Fast Moving Consumer

Goods Company, touching the lives of two out of three Indians with over 20 distinct

categories in Home & Personal Care Products and Foods & Beverages. They endow

the company with a scale of combined volumes of about 4 million tonnes and sales ofRs.10, 000 crores.

HUL is also one of the country's largest exporters; the Government of India has

recognized it as a Golden Super Star Trading House.

The mission that inspires HUL's 36,000 employees, including over 1,350 managers,

is to "add vitality to life." HUL meets every day needs for nutrition, hygiene, and

personal care with brands that help people feel good, look good and get more out

of life. It is a mission HUL share with its parent company, Unilever, which holds

51.55% of the equity. The rest of the shareholding is distributed among 380,000

individual shareholders and financial institutions.

HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's,

Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-

Annapurna, Quality Walls are household names across the country and span many

categories - soaps, detergents, personal products, tea, coffee, branded staples, icecream and culinary products. They are manufactured in close to 80 factories. The

operations involve over 2,000 suppliers and associates. HUL's distribution network,

comprising about 7,000 redistribution stockiest , directly covers the entire urban

population, and about 250 million rural consumers .

HUL has traditionally been a company, which incorporates latest technology in all its

operations . If Hindustan Lever straddles the Indian corporate world, it is because of

being single-minded in identifying itself with Indian aspirations and needs in everywalk of life.


20/71

20

HUL is also one of the country's largest exporters; it has been recognized as a Golden

Super Star Trading House by the Government of India. The mission that inspires

HUL's over 15,000 employees, including over 1,300 managers, is to "add vitality to

life." HUL meets every day needs for nutrition, hygiene, and personal care with

brands that help people feel good, look good and get more out of life. It is a mission

HUL shares with its parentcompany, Unilever, which holds 52.10% of the equity. The

rest of the shareholding isdistributed among 360,675 individual shareholders and

financial institutions.

Vision

Unilever products touch the lives of over 2 billion people every day whether that's

through feeling great because they've got shiny hair and a brilliant smile, keeping

their homes fresh and clean, or by enjoying a great cup of tea, satisfying meal or

healthy snack.

The four pillars of our vision set out the long term direction for the company where

we want to go and how we are going to get there:

We work to create a better future every day

We help people feel good, look good and get more out of life with brands and services

that are good for them and good for others.

We will inspire people to take small everyday actions that can add up to a big

difference for the world.

We will develop new ways of doing business with the aim of doubling the size of our

company while reducing our environmental impact.

We've always believed in the power of our brands to improve the quality of peopleslives and in doing the right thing. As our business grows, so do our responsibilities.

We recognise that global challenges such as climate change concern us all.

Considering the wider impact of our actions is embedded in our values and is a

fundamental part of who we are.

Brands

HUL is the market leader in Indian consumer products with presence in over 20consumer categories such as soaps, tea, detergents and shampoos amongst others with


21/71

21

over 700 million Indian consumers using its products. Eighteen of HUL's brands

featured in the ACNielsen Brand Equity list of 100 Most Trusted Brands Annual

Survey (2012), carried out by Brand Equity, a supplement of The Economic Times.

The Most Trusted Brands from HUL in the top 100 list (their rankings in brackets)are: Clinic Plus (4), Lifebuoy (10), Fair & Lovely (11), Rin (12), Surf Excel (13), Lux

(14), Pepsodent (17), Closeup (19), Ponds (20), Sunsilk (26), Dove (37), Vim (43),

Pears (79), Lakme (81), Vaseline (86), Wheel (87), Hamam (95) and Rexona (96).

The latest launches for Hindustan Unilever include: Surf Excel Easywash; Lakm

eyeconic range; Vim Anti Germ bar;Pureit Marvella UV with Advance Alert System;

TRESemm: For Salon style hair at home every day; Clinic Plus: Milk Protein

Formula A++; Comfort 1 Rinse; Bru Exotica Guatemala; Closeup: Deep Action;

Dove Hair Fall Rescue Treatment; Taaza: Taazgi bhari chaai, dimaag khul jaaye.

The company has a distribution channel of 6.3 million outlets and owns 35 major

Indian brands .[9] Its brands include:

Awards and recognition

As per the latest Nielsen Campus Track -Business School Survey released in February

2013, Hindustan Unilever Limited has emerged as the No.1 employer of choice for B-

School students who will graduate in 2013, across functions. HUL also retained the

'Dream Employer' status for the 4th year running and continues to be the top

company considered for application by B-School student in India.

In 2012, HUL was recognised as one of the world's most innovative companies byForbes. With a ranking of number 6, it was the highest ranked FMCG Company.

Hindustan Unilever Limited (HUL) won the first prize at FICCI Water Awards 2012

under the category of 'community initiatives by industry' for Gundar Basin Project, a

water conservation initiative.

Hindustan Unilever Limited won 13 awards at the Envies 2012 Media Awards

organised by the Advertising Club Bombay in September 2012.the Company bagged
https://en.wikipedia.org/wiki/ACNielsenhttps://en.wikipedia.org/wiki/The_Economic_Timeshttps://en.wikipedia.org/wiki/Hindustan_Unilever#cite_note-9https://en.wikipedia.org/wiki/Hindustan_Unilever#cite_note-9https://en.wikipedia.org/wiki/Hindustan_Unilever#cite_note-9https://en.wikipedia.org/wiki/Nielsen_Companyhttps://en.wikipedia.org/wiki/Nielsen_Companyhttps://en.wikipedia.org/wiki/Nielsen_Companyhttps://en.wikipedia.org/wiki/Business_Schoolhttps://en.wikipedia.org/wiki/Business_Schoolhttps://en.wikipedia.org/wiki/Business_Schoolhttps://en.wikipedia.org/wiki/Business_Schoolhttps://en.wikipedia.org/wiki/Nielsen_Companyhttps://en.wikipedia.org/wiki/Hindustan_Unilever#cite_note-9https://en.wikipedia.org/wiki/The_Economic_Timeshttps://en.wikipedia.org/wiki/ACNielsen


22/71

22

four awards at the Spikes Asia Awards 2012, held in September. The awards included

one Grand Prix one Gold Award and two Silver Awards.

HULs Chhindwara Unit won the National Safety Award for outstanding performance

in Industrial Safety. These awards were instituted by the Union Ministry of Labourand Employment in 1965.

HUL was one of the eight Indian companies to be featured on the Forbes list of

World's Most Reputed companies in 2007.

In July 2012 Hindustan Unilever Limited won the Golden Peacock Occupational

Health and Safety Award for 2012 in the FMCG category for its safety and health

initiatives and continuous improvement on key metrics.

Pond's Talcum Powder's packaging innovation has bagged a Silver Award at the

prestigious 24th DuPont Global Packaging Award, in May 2012.The brand was

recognised for cost and waste reduction.

In May 2012, HUL & Star Bazaar bagged the silver award for 'Creating Consumer

Value through Joint Promotional and Event Forecasting' at the 13th ECR Efficient

Consumer Response Asia Pacific Conference.

In 2011, HUL was named the most innovative company in India by Forbes and

ranked 6th in the top 10 list of most innovative companies in the world.

Hindustan Unilever Ltd received the National Award for Excellence in Corporate

Governance 2011 of the Institute of Company Secretaries of India (ICSI) for

excellence in corporate governance

In 2012, Hindustan Unilever emerged as the No. 1 employer of choice for B-School

students who will graduate in 2012. In addition, HUL also retained the 'Dream

Employer' status for the 3rd year running

Hindustan Unilever ranked No. 2 in Fortune India's Most Admired Companies list,

which was released by Fortune India in partnership with the Hay Group. The

company received the highest scores for endurance and financial soundness

HUL was ranked 39th in The Brand Trust Report (2011) published by Trust Research

Advisory. S even HUL brands also featured in the list: Lux, Ponds, Dove, Lakme,

Axe, Sunsilk and Pepsodent.
https://en.wikipedia.org/wiki/Efficient_Consumer_Responsehttps://en.wikipedia.org/wiki/Efficient_Consumer_Responsehttps://en.wikipedia.org/wiki/The_Brand_Trust_Reporthttps://en.wikipedia.org/wiki/The_Brand_Trust_Reporthttps://en.wikipedia.org/wiki/Efficient_Consumer_Responsehttps://en.wikipedia.org/wiki/Efficient_Consumer_Response


23/71

23

HUL emerged as the top 'Dream Employer' as well as the top company considered for

application in the annual B-School Survey conducted by Nielsen in November 2010.

This was the second successive year that HUL has been rated as the top 'Dream

Employer' in India. HUL has also emerged as the top employer of choice among the

top six Indian Institutes of Management (IIMA, B, C, L, K and I).

Research facilities

The Hindustan Unilever Research Centre (HURC) was set up in 1967 in Mumbai, and

Unilever Research India in Bangalore in 1997. Staff at these centres developed many

innovations in products and manufacturing processes. In 2006, the company's

research facilities were brought together at a single site in Bangalore.

Sustainable Living

Unilever launched Sustainable Living Plan in on 15 November 2010 at

London, Rotterdam, New York and New Delhi simultaneously.

The Unilever Sustainable Living Plan has three major goals, which Unilever aims to

achieve by 2020:

Help more than one billion people improve their health and well-being

Halve the environmental impact of their products

Source 100% of their agricultural raw materials sustainably

The plan also sets out over 50 social, economic and environmental targets.

In 2012 Hindustan Unilever featured in BSE' s Greenex India's first environmental

friendly equity index the first environmental friendly equity index, which will enable

investors take more informed decisions in the green theme of India.

Water

The company has reduced water usage in manufacturing operations by 10.1% when

compared with 2010 and by 21.5% compared to 2008 baseline. Rainwater harvesting

has been implemented in more than 50% of units. More than 75% of the company's

manufacturing sites are zero discharge.
https://en.wikipedia.org/wiki/Indian_Institutes_of_Managementhttps://en.wikipedia.org/wiki/Mumbaihttps://en.wikipedia.org/wiki/Bangalorehttps://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttps://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttps://en.wikipedia.org/wiki/Bangalorehttps://en.wikipedia.org/wiki/Mumbaihttps://en.wikipedia.org/wiki/Indian_Institutes_of_Management


24/71

24

HUL has also been working for more than a decade in the area of water conservation

in locations which face acute water shortage. By 2015, the Company expects hundred

billion litres of water to be harvested through the projects they have undertaken. One

million people in 180 villages across India will benefit. Most projects are expected to

see a 50% rise in crop production .[57]

India Water Body

In May 2011, the company launched the India Water Body, an initiative aimed to

address the challenge of water scarcity in India .[58][59] HUL has been working in the

area of water conversation for more than a decade and has initiated projects in several

states across India with the aim to create capacity towards conserving more than 50

billion litres of water in the next four years (by 2015) .Water conservation has been afocus area for the company across its value chain. The company has not only reduced

water consumption in its operations but also developed product innovations such

as Surf Excel quick-wash that helps consumers use less water while washing clothes.

Plastic Recycling Project

In July 2011, HUL and Bharti Retail started a three-month campaign called "Go

Recycle" to promote plastic recycling among consumers in the National Capital

Region (NCR) in 2011. Consumers were encouraged to bring empty plastic bottles

and pouches, for which they were given discount coupons in return.

Creating financial inclusion

The company joined forces with the State Bank of India (SBI) to introduce banking

services to people from low-income groups in rural areas. [62] The project was piloted

in the states o fMaharashtra and Karnataka.

HUL also renders services to the community, focusing on health & hygiene education,empowerment of women, and water management. It is also involved in education and

rehabilitation of underprivileged children, care for the destitute and HIV-positive,

and rural development. HUL has also responded to national calamities, for instance

with relief and rehabilitation after the 2004 tsunami caused devastation in South India.

Health and Hygiene
https://en.wikipedia.org/wiki/Hindustan_Unilever#cite_note-57https://en.wikipedia.org/wiki/Hindustan_Unilever#cite_note-57https://en.wikipedia.org/wiki/Hindustan_Unilever#cite_note-57https://en.wikipedia.org/wiki/Hindustan_Unilever#cite_note-58https://en.wikipedia.org/wiki/Hindustan_Unilever#cite_note-58https://en.wikipedia.org/wiki/Hindustan_Unilever#cite_note-58https://en.wikipedia.org/wiki/Water_conservationhttps://en.wikipedia.org/wiki/Surf_Excelhttps://en.wikipedia.org/wiki/Plastic_recyclinghttps://en.wikipedia.org/wiki/National_Capital_Regionhttps://en.wikipedia.org/wiki/National_Capital_Regionhttps://en.wikipedia.org/wiki/State_Bank_of_Indiahttps://en.wikipedia.org/wiki/Hindustan_Unilever#cite_note-62https://en.wikipedia.org/wiki/Hindustan_Unilever#cite_note-62https://en.wikipedia.org/wiki/Maharashtrahttps://en.wikipedia.org/wiki/Karnatakahttps://en.wikipedia.org/wiki/Hygienehttps://en.wikipedia.org/wiki/Water_managementhttps://en.wikipedia.org/wiki/HIV-positivehttps://en.wikipedia.org/wiki/Rural_developmenthttps://en.wikipedia.org/wiki/2004_Indian_Ocean_earthquakehttps://en.wikipedia.org/wiki/2004_Indian_Ocean_earthquakehttps://en.wikipedia.org/wiki/Rural_developmenthttps://en.wikipedia.org/wiki/HIV-positivehttps://en.wikipedia.org/wiki/Water_managementhttps://en.wikipedia.org/wiki/Hygienehttps://en.wikipedia.org/wiki/Karnatakahttps://en.wikipedia.org/wiki/Maharashtrahttps://en.wikipedia.org/wiki/Hindustan_Unilever#cite_note-62https://en.wikipedia.org/wiki/State_Bank_of_Indiahttps://en.wikipedia.org/wiki/National_Capital_Regionhttps://en.wikipedia.org/wiki/National_Capital_Regionhttps://en.wikipedia.org/wiki/Plastic_recyclinghttps://en.wikipedia.org/wiki/Surf_Excelhttps://en.wikipedia.org/wiki/Water_conservationhttps://en.wikipedia.org/wiki/Hindustan_Unilever#cite_note-58https://en.wikipedia.org/wiki/Hindustan_Unilever#cite_note-58https://en.wikipedia.org/wiki/Hindustan_Unilever#cite_note-57


25/71

25

Lifebuoy took handwashing messages to remote areas, reaching out to 30million

people directly in 2010 11 through HUL's rural outreach programme, Khushiyon Ki

Doli (Caravan of Happiness). The Company entered into a partnership with

UNICEF and Department of Rural Development, Government of Madhya Pradesh,

to implement hygiene awareness programmes in over 5,000schools in 2012. This will

further strengthen the Lifebuoy handwash programme in India and contribute to the

global target of reaching one billion consumers by 2015 across Asia, Africa and Latin

America

As many as 30 million people in India have gained access to safe drinking water from

Pureit, in-home purifier which provides water 'as safe as boiled water', without

needing electricity, or running water. Pureit is affordable with an upfront coststarting at Rs.900, and an ongoing cost that provides approximately four litres of safe

drinking water for about one rupee. Globally, Unilever aims to reach 500 million

people through Pure it by 2020.

Nutrition

The company's food and beverage brand labels carry information on energy,

protein carbohydrate, sugars, fat, and where relevant, on saturated fat, fibre and

sodium. HUL also participates in The Choices Programme. It is a front -of-packlabelling programme aimed to help consumers make a healthier choice. Around 60%

of our major food and beverage brands comply with the guidelines as against the

global target of 100% by 2015.

Greenhouse Gases

The Company is on track to meet the global 2012 target, which is to reformulate the

products to reduce GHG emissions by 15%. The process of reformulating products

started in 2009. A significant reduction has been achieved with the reduction in

detergent powders of Sodium Tri Poly Phosphate, an ingredient that neutralises

the impact of water hardness.

In 2011, the Company reduced C02 emissions per tonne of production in India by

9.9% compared to 2010 and by 14.7% compared to the 2008 baseline. This was

achieved due to the installation of biomass. boilers to reduce CO2 emissions at

Chiplun, Pondicherry, Goa, Nasik and Mysore factories. The biggest challenge was to

deliver reduction in CO2 emissions from transport despite significant volume


26/71

26

increase. In 2011, the Company delivered 17.8% improvement in CO2 efficiency in

logistics over 2010.

Sustainable Sourcing

In 2011, 60% of tomatoes used in Kissan Ketchup in India were from sustainable

sources. The Company is working with a select group of tomato farmers to help

reduce water usage through drip irrigation and at the same time reduce the use of

fertiliser and pesticides while improving yields.

More than 16% of the tea sourced from India for Unilever's brands was from

sustainable sources in 2011 Trials have produced average water saving of 40%.

Unilever now aims to help up to 1,000 gherkin farmers transition to drip irrigation by

2015.Unilever also focuses on helping farmers use composting to cut water use. By

2020, we will source 100% of the raw materials sustainably.

Enhancing Livelihoods

Project Shakti, a unique initiative by the Company to build and support a network of

women entrepreneurs in small villages was strengthened in 2010 11 with theShaktimaan initiative, under which men from Shakti households were given a bicycle

to cover a cluster of villages in their vicinity. There are now 30,000 Shaktimaans

across India.

The company's Kwality Wall's mobile vending operations provide entrepreneurship

opportunities to over 6,500 migrant labourers across India.

Marketing Initiatives

Khushiyon Ki Doli

The company launched a multi-brand rural marketing initiative called Khushiyon Ki

Doli, in 2010 in three states Uttar Pradesh, Andhra Pradesh and Maharashtra.

Through this initiative more than 10 million consumers were contacted directly in

more than 28,000 villages across these three states. Through this initiative, the
https://en.wikipedia.org/wiki/Uttar_Pradeshhttps://en.wikipedia.org/wiki/Maharashtrahttps://en.wikipedia.org/wiki/Maharashtrahttps://en.wikipedia.org/wiki/Uttar_Pradesh


27/71

27

company also reached out to 170,000 retailers in these villages. Through this initiative

HUL engaged with 25 million rural consumers in media dark areas in 2011.

In 2011, HUL extended this initiative to cover five states West Bengal, Bihar,

Maharashtra, Andhra Pradesh and Uttar Pradesh, covering over fifty thousand villagesacross these five states.

In 2012, Khushiyon Ki Doli has been extended to Karnataka to cover a total of

six States : Maharashtra, UP, Bihar, West Bengal, Andhra Pradesh and Karnataka.

The initiative aims to cover over Fifty five thousand villages in 2012.

Various personal care and home care brands of HUL have participated in this

initiative including: Wheel, Surf Excel, FAL, Sun silk, Vim, Lifebuoy and Close-up.

The first step of spreading awareness is achieved through a team of promoters who

head to each village and invite the villages to what is known as Mohallas to make

them aware of the company and its products . In every village, there are about 4 5

teams that conduct these events in local language for small focused groups so that it

allows for greater engagement and involvement for the consumers. During this

activity, brands are introduced with the help of TVCs that are played

continuously . And the promoters by way of live demonstrations bring alive the

hygiene benefits of using such brands and improving the quality of daily life. To

increase the fun element and enhance involvement, promoters also conduct

simple quizzes and games around the brands and daily hygiene habits . As part of

this activation, the company offers schemes both for the participating consumers and

also local retailers for generating trial among consumers as well enhancing

availability at retail. Post the Mohallas activity, the promotes go home to home

and conduct consumer home visits to generate trial where they offer attractive

promotions to the consumers. Similarly, there is another team which visits all the

shops in the village which ensures improved availability and visibility of HUL brands.

Perfect Stores

The Perfect Stores initiative was launched by HUL in May 2010 with the aim to

increase the availability and visibility of its products in retail stores across the

country. In May 2010, four thousand HUL employees from across functions launched


28/71

28

the initiative through 'Project Bushfire' and created 16,000 'Perfect Stores' in 130

towns in India in a span of 6 days . The employees not only laid out various products

on the stores shelves but also dusted them, thereby increasing the public appeal of the

stores retailing their brands. The company is constantly increasing the number of

stores included in the 'Perfect Stores' programme.

Technology has played a key role in this initiative. The company's salesmen have

been provided with a hand held terminal called iQ, which gives customised

recommendations for each store which products to sell, when to sell them and in

what quantity. The salesman just has to sync the iQ device when visiting the

distributor and download data from the centre to retrieve information on the market.

Headquarters

Hindustan Unilever's corporate headquarters are located at Andheri (E), Mumbai. The

campus is spread over 12.5 acres of land and houses over 1,600 employees. Some of

the facilities available for the employees include a convenience store, a food court, an

occupational health centre, a gym, a sports & recreation centre and a day care

centre .[82]

Mercury pollution Main article: Kodaikanal#Mercury_pollution

In 2001 a thermometer factory in Kodaikanal run by Hindustan Unilever was accused

of dumping glass contaminated with mercury in municipal dumps, or selling it on to

scrap merchants unable to deal with it appropriately.

Skin lightening creams

Hindustan Unilever's "Fair and Lovely" is the leading skin-lightening cream for

women in India. The company had to cease television advertisements for the product

in 2007. Advertisements depicted depressed, dark-complexioned women, who had

been ignored by employers and men, suddenly finding new boyfriends and glamorous

careers after the cream had lightened their skin. In 2008 Hindustan Unilever made

former Miss World Priyanka Chopra a brand ambassador for Pond's, and she then

appeared in a mini-series of television commercials for another skin lightening

product, 'White Beauty', alongside Saif Ali Khan and Neha Dhupia; these

advertisements, showing Priyanka's face with a clearly darker complexion against the
https://en.wikipedia.org/wiki/Andherihttps://en.wikipedia.org/wiki/Mumbaihttps://en.wikipedia.org/wiki/Hindustan_Unilever#cite_note-82https://en.wikipedia.org/wiki/Hindustan_Unilever#cite_note-82https://en.wikipedia.org/wiki/Hindustan_Unilever#cite_note-82https://en.wikipedia.org/wiki/Kodaikanal#Mercury_pollutionhttps://en.wikipedia.org/wiki/Thermometerhttps://en.wikipedia.org/wiki/Kodaikanalhttps://en.wikipedia.org/wiki/Mercury_(element)https://en.wikipedia.org/wiki/Skin-lighteninghttps://en.wikipedia.org/wiki/Priyanka_Choprahttps://en.wikipedia.org/wiki/Pond%27s_Creamshttps://en.wikipedia.org/wiki/Saif_Ali_Khanhttps://en.wikipedia.org/wiki/Neha_Dhupiahttps://en.wikipedia.org/wiki/Neha_Dhupiahttps://en.wikipedia.org/wiki/Saif_Ali_Khanhttps://en.wikipedia.org/wiki/Pond%27s_Creamshttps://en.wikipedia.org/wiki/Priyanka_Choprahttps://en.wikipedia.org/wiki/Skin-lighteninghttps://en.wikipedia.org/wiki/Mercury_(element)https://en.wikipedia.org/wiki/Kodaikanalhttps://en.wikipedia.org/wiki/Thermometerhttps://en.wikipedia.org/wiki/Kodaikanal#Mercury_pollutionhttps://en.wikipedia.org/wiki/Hindustan_Unilever#cite_note-82https://en.wikipedia.org/wiki/Mumbaihttps://en.wikipedia.org/wiki/Andheri


29/71

29

visibly fairer Neha Dhupia, were widely criticised for perpetuating racism and

lowering the self-esteem of women and girls throughout India who were misled by

HUNL to believe that they needed to be white to be beautiful.

Corporate Social Responsibility

HUL shows more interest in CSR also as from 2004 to 2008 it has reduced the

emission of Carbon di-oxide by more than 25% in the manufacturing.

HUL follows 5 R strategies to deal with the Green House Gases (GHG):

Reduce

Re-Use

Recycle

Recover

Renew

HUL uses Agriculture wastages as the fuel (Ground nut shells, bagasse, saw dust,

Coconut shells, and cashew) DOMEX, a product of HUL is planning to sponsor theworld toilet day on the 19th November every year.

PROJECT SHAKTI

ICICI bank is the financial partner of HUL in the project Shakti

As competition is increasing day by day, its difficult to maintain the leader position

& to further strengthen the distribution network HUL made a project

Called project SHAKTI which will serve the following purpose:

A) Small, scattered settlements and poor infrastructure make distribution difficult.

To reach: Over 500,000 villages not reached directly by HUL.

B)

media-reach: 500 million Indians lack TV& radio.

C) Low category penetration, consumption. To Influence:

D) Per capita consumption in Unilever categories is 33% of urban level.


30/71

30

HUL soon realized that although it was enjoying a greater penetration in the rural

market when compared with its competitor such as Nirma and ITC, its direct reach

was restricted to only 16%. The FMCG giant was desperate to increase this share.

HUL saw its dream fulfilment in the vast Indian rural market. The company was

already engaged in rural development with the launch of the Integrated Rural

Development Programme in 1976 in the Etah district of Uttar Pradesh. This program

was in tandem with HUL's dairy operations and covered 500 villages in Etah.

Subsequently, the company introduced similar programs in adjacent villages. These

activities mainly aimed at training farmers , animal husbandry , generating

alternative income, health & hygiene and infrastructure development . The main

issue in rural development was to create income- generating prospects for the poor

villagers. Such initiatives, linked with the company's core business , became

successful and sustainable and proved to be mutually beneficial to both the

company and its rural customers . However much more remained to be done.

HUL offered a wide range of products to the SHGs , which were relevant to rural

customers. HUL invested significantly in resources who work with the women on

the field and provide them with on-the-job training and support . HUL provided

the necessary training to these groups on the basics of enterprise management, which

the women need to manage their enterprises. For the SHG women, this translated

into a much-needed, sustainable income contributing towards better living and

prosperity . Armed with micro-credit , women from SHGs become direct-to-home

distributors in rural markets .

COMPETITION IN THE FMCG MARKET

Five main competitive strategies are:

Overall low cost leadership strategy

Best co st provider's strategy

Broad differentiation strategy

Focused low cost strategy

Focused differentiation strategy


31/71

31

Here competitive strategy varies from sector to sector and company to company.

Thus, it is not easy to predict a single or to find a single strategy for the whole sector.

When we come on to FMCG Sector main strategies lay behind market strategies, cost,

and quality strategies. Here in this report you are going to get information about such

type of strategies of FMCG giants.

Competitive Strategies and Comparison with ITC

This Company is earlier known as Hindustan Lever Ltd. This is India's largest FMCG

sector company with all type of household products available with it. It has Home &

Personal Care products, and also food and Water Purifier available with it. According

to Brand Equity,

HUL has largest no of brands in most trusted brands list 16 of HUL's brands

featured in AC-Nielson Brand Equity list of 100 most trusted brands in 2008 in

an annual survey . For the entire year ending March - 2009 net turnover of company

is Rs. 20'239.33 Crore which is 47.99% higher than 31st December 2007's Rs.

13675.43 Crore driven mainly by domestic FMCG's with net profit stood at Rs.

2'496.45 Crore.

HUL

This Company was earlier known as Imperial Tobacco Company of India Ltd. It

is currently headed by Yogesh Chander Deveshwar. Company mainly operates in the

industry like Tobacco, Foods, Hotels, Stationary and Greeting Cards with the major

products constitutes Cigarettes, packed foods, hotels, and apparels. For the entire year

ending Mar- 2009 the turnover of company is at Rs. 15388 Crore which is 10.3%higher than previous year's Rs. 13947.53 Crore, driven mainly by robust 20% growth

in non-cigarette FMCG business with net profit stood at Rs. 3324 Crore.

ITC Limited

Analysis of Both Companies

HUL & ITC are major companies in FMCG market in India. When we compare

both companies on the basis of their strategies i.e., their competitive strategies in the present market. When we look at the present segment breakup for both of the


32/71

32

companies then we came to know that their different products vary too much in

the market.

Now let us take a comparative analysis of both the companies under some heads:

HUL

Hindustan Unilever (HUL) is the largest pure- play FMCG Company in the

country and has one of the widest portfolio of products sold via a strong

distribution channel. It owns and markets some of the most popular brands in the

country across various categories, including soaps, detergents, shampoos, tea and face

creams.

ITC

ITC is not a pure-play FMCG company, since cigarettes is its primary business.

It is diversifying into non-tobacco. FMCG segments like foods, personal care, paper

products, hotels and agri-business to reduce its exposure to cigarettes.

Performance

After stagnating between 1999 and '04, the company is back on the growth track. In

the past three years, till 2008 HUL's net sales have witnessed a CAGR of 11%, whilenet profit has posted a CAGR of 17%.

Despite diversification, ITC's reliance on cigarettes is still huge. The tobacco business

contributes 40% to its revenues, and accounts for over 80% of its profit. This cash-

generating business has enabled it to take ambitious, but expensive bets in new

segments and deliver modest profit growth.

Overall Strategy : HUL always believes in customer friendly products with major emphasis on low

cost overall without compromising on the quality of the product. They are

leveraging the capabilities and scale of the parent company and focusing on the value

of execution. The entire product portfolio is also being tweaked to include premium

offerings such as Pond's Age Miracle and dove shampoo in skin and hair care. HUL

introduced Project Shakti to penetrate the rural market.


33/71

33

ITC is focusing on delivering value at competitive prices. Its tremendous reach

through extensive distribution chain has been a competitive advantage. Additionally,

the company's e-choupal model for direct

Procurement is well known under which ITC partners with over 100,000 farmersfor spices and wheat procurement and an even larger number for oilseeds. This

kind of rural pedigree is hard to beat.

Growth Drivers

HUL has been launching new products and brand extensions, with investments

being made towards brand-building and increasing its market share. HUL is alsostreamlining its various business operations, in line with the One Unilever'

philosophy adopted by the Unilever group worldwide. Introduction of premium

products and addition of new consumers via market expansion will be HUL's growth

drivers.

ITC's backward integration to ensure that its products pass efficiently from the farms

to consumers has helped it to cut down supply and procurement costs. ITC's non-

cigarette FMCG business leverages the large distribution network the company has

developed by selling cigarettes over the years. A rich product mix, along with ramp-

up of investments in its new sectors, will be instrumental in charting ITC's growth

path.

Risk for both the companies

Being an MNC operating in India , HUL is more conservative in its strategies

than its Indian counterparts. Moreover, given increasing competition , it faces the

risk of being overtaken by domestic players in various categories. Prolonged inflation

may lead to margin contraction, in case HUL is not able to pass on this burden to

consumers. The company's large size also poses a problem, since it does not give

HUL the agility to address the competition it faces from national and regional players.

For HUL Increased regulatory clamps on tobacco, along with rising tax burden, pose a

business risk for ITC. So, it has started an ambitious diversification plan, which has its


34/71

34

own set of risks. With its foray into the conventional FMCG space, ITC has entered

the high-clutter branded products market. This will burden its resources in terms of ad

spend and brand- building. Creating brand recall and building market share in new

products are ITC's key challenges. Export ban and rising crop prices pose a threat for

its agri-business, taxing its margins.

DISTRIBUTION NETWORK OF HUL:

How do you ensure that Mr Ramesh in Kanyakumari gets his Lifebuoy soap and Mrs

Kulkarni in Jammu gets to know how Bru coffee tastes even before she has bought it?

Well, you need to have a cutting edge distribution network in place.

Hindustan UniLever's distribution network is recognized as one of its key strengths.

Its focus is not only to enable easy access to our brands, but also to touch.

TO MEET THE EVERYDAY NEEDS OF PEOPLE EVERYWHERE.

Way convergence - of product availability, brand Communication and higher

levels of brand experience. HUL's products , manufactured across the country, are

distributed through a network of about 7,000 redistribution stockiest covering about

one million retail outlets . The distribution network directly covers the entire urban

population. The general trade comprises grocery stores, chemists, wholesale, kiosks

and general stores . Hindustan UniLever services each with a tailor-made mix of

services. The emphasis is equally on using stores for direct contact with

consumers , as much as is possible through in-store facilitators.

Supermarkets

Self-service stores and supermarkets are fast emerging in metros and large

towns . To service modern retailing outlets in the metros, HUL has set up a full-

scale sales organization, exclusively for this channel. The business system delivers

excellent customer service, while driving growth for the company and the store. At


35/71

35

the same time, innovative marketing initiatives are taken to provide consumers with

experience of its brands at the store itself, through product tests and in-store sampling.

Villages

HUL has also revamped its sales organization in the rural markets to fully meet

the emerging needs and increased purchasing power of the rural population. The

company has brought all markets with populations of below 50,000 under one rural

sales organization. The team comprises an exclusive sales force and Exclusive

redistribution stockiest , under the charge of dedicated managers. The team focuses

on building superior availability , while enabling brand building in the deepest

interiors. HUL's distribution network in rural India already directly covers about

50,000 villages, reaching about 250 million consumers, through about 6000 sub-

stockiest.

IT

An IT-powered system has been implemented to supply stocks to redistribution

stockiest on a continuous replenishment basis. The objective is to catalyse HLL's

Growth by ensuring that the right product is available at the right place in right

quantities, in the most cost-effective manner. For this, stockiest have been connected

with the company through an Internet-based network, called RS Net, for online

interaction on orders, dispatches, information sharing and monitoring. RS Net covers

about 80% of the company's turnover. Today, the sales system gets to know every day

what HLL stockiest have sold to almost a million outlets across the country. RS Net is

part of Project Leap, HLL's end-to-end supply chain, which also includes a back-end

system connecting suppliers, all company sites and stretching right up to stockiest.

CHANNELS

Hindustan UniLever is simultaneously creating new channels, designed on the same

principle of holistic contact with consumers.


36/71

36

CHAPTER 3

RESEARCH METHODOLOGY


37/71

37

Purpose of the study

The Purpose of study is to know about the competitive strategies of Hindustan

unilever ltd. to their competitors and to study the marketing strategies of HUL forgreen production.. This study is very important in order to know the consumers in

Indian context and what they prefer to purchase in the product.

Through this study we can know the thinking of the consumers and what they actually

want the product and service from the companies. This study is really going to help

me for getting too much knowledge about the retail industry.

This study will help me understanding the factors which are affecting the consumer

and study about how the companies provide better services to the customer.

Market research is the investigation of the structure and development of the market

for the purpose of formulating efficient policies for purchasing, production and

sales.

Research Objectives of the study

1. To study competitors HUL in respect to Go Green practices

3. To study the marketing strategies of HUL for green production.

4. To study the strength, weakness, opportunity, and threats (swot analysis) of HUL

Ltd.

5. To study the customer satisfaction regarding new technique of go green.

Research methodology of the study

Research methodology is considered as the nerve of the project . Without a proper

well-organized research plan, it is impossible to complete the project and reach to any

conclusion. The project was based on the survey plan. The main objective of survey

was to collect appropriate data , which work as a base for drawing conclusion and

getting result.

Therefore, research methodology is the way to systematically solve the research

problem. Research methodology not only talks of the methods but also logic behind


38/71

38

the methods used in the context of a research study and it explains why a particular

method has been used in the preference of the other methods.

Sample Survey Design and Analysis

Overview

Researchers often use sample survey methodology to obtain information about a

large aggregate or population by selecting and measuring a sample from that

population. Due to the variability of characteristics among items in the population,

researchers apply scientific sample designs in the sample selection process to reduce

the risk of a distorted view of the population, and they make inferences about the

population based on th e information from the sample survey data . In order to make

statistically valid inferences for the population, they must incorporate the sample

design in the data analysis.

Traditional SAS procedures, such as the MEANS procedure and the GLM

procedure, compute statistics under the assumption that the sample is drawn from an

infinite population by simple random sampling. These procedures generally do not

correctly estimate the variance of an estimator if they are applied to a sample drawn by a complex sample design. SAS users have requested procedures that analyze data

from complex sample surveys.

METHODS OF SURVEY ANALYSES:

The ways in which causal inferences are drawn from quantitative data depend onthe design of the study that produced the data. In experimental studies the

investigator, by using one or another kind of experimental control, can remove the

effects of the major extraneous causal factors on the dependent variable. The

remaining extraneous causal factors can be turned into a chance variable if subjects

are assigned randomly to the experimental treatments. In principle, then, there

should be only two sources of variation in the dependent variable: (1) the effects of

the independent variables being studied ; (2) the effects of the random assignmentand of other random phenomena, especially measurement error. By using the


39/71

39

procedures of statistical inference, it is possible to arrive at relatively clear

statements about the effects of the independent variables . But in survey research

(or observational research, as it is usually called by statisticians) neither

experimental control nor random assignment is available to any significant degree.

The task of survey analysis is therefore to manipulate such observational data

after they have been gathered, in order to separate the effects of the independent

variables from the effects of the extraneous causal factors associated with them.

In the survey the association of the independent and extraneous variables occurs

naturally; in the field experiment, or quasi-experimental design , the extraneous

variables usually result from the experimenters deliberate introduction of a

stimulus or his modification of some condition, both of which result in a set of

problems different from those considered here [see Experimental design, article

on quasi-experimental design].

As these examples suggest, survey analysis differs from other no experimental

procedures for analyzing and presenting quantitative data , notably from

probability sampling procedures and demographic analysis. In contrast with the

statistical analysis of sample surveys , survey analysis often deals with total

populations ; even when the data of survey analysis come from a probability sample,

the conventional statistical problems of estimating parameters and testing hypotheses

are secondary concerns (Turkey 1962). And although survey analysis has historical

roots that go back to the earliest work in demography, it differs from demography in

the source of its data and, therefore, in the operations it performs on these data .

Until recently, demographic analysis had largely relied on reworking the published

tables of censuses and registers of vital statistics, while survey analysts usually

constructed their own tables from individual questionnaires or interviews .

Although these differences are still important , survey analysts have begun to use

some demographic techniques, and demographers have resorted to survey analysis of

specially gathered interview data in such areas as labor mobility and family

planning . Perhaps the most striking evidence of the convergence of these two lines of

inquiry is in the widespread use of the one-in-a-thousand and one-in-ten-thousand

samples of the 1960 U.S. Census of Popul ation. These samples allow the analyst of


40/71

40

census data to prepare whatever tables he may wish. As other national censuses make

their data available in this form, demographic analysis will more closely resemble

survey analysis.

Survey analysis has a role to play in the construction of formal theories , whether

they use explicit mathematical relations or are only implicitly mathematical, as in

computer simulation. Some mathematical models are indeed useful in the analysis of

survey data (Coleman 1964). But survey analysis as it is defined here usually limits

itself to identifying variables important enough to be included in the formal

theories

The background of survey analysis

Two basic elements in survey analysis are the use of rates as dependent variables and

the explanation of differences in rates by means of their statistical associations with

other social phenomena. Both of these features first appeared in

Graunts Natur al and Politi cal Observations M ade upon the Bil ls of M ortali ty

(1662), which included the first data on urban and rural death rates. This onesmall book thus makes Graunt a major figure in the history not only of survey

analysis but also of statistics and demography. With the exception of the life table,

which Graunt invented but which was improved significantly a generation later by the

astronomer Edmund Halley, Graunts methods set the pattern for statistical

analysis until the middle of the nineteenth century .

By the last decade of the nineteenth century the use of tables for causal analysis had

reached a high stage of development, both in England and on the continent of

Europe . This was also the period when Charles Booth, disturbed by a socialist claim

that a third of the people of London were living in poverty, was conducting his

monumental study of the London poor, a study initially intended to uncover the

cause of poverty . In France, at about the same time, fimile Durkheim drew on the

accumulated work in moral statistics to produce the first truly sociological

explanation of differences in suicide rates. The two men and their studies could

hardly have been more different. Booth, the successful businessman and dedicated


41/71

41

conservative, primarily sought accurate data on the poor of London ; his original

hope for causal analysis was never realized. Durkheim, the brilliant and ascetic

university professor, saw in his analysis of official statistics the opportunity to make

sociology a truly autonomous discipline. And yet the two men were alike in one

important error of omission : both failed to recognize their need for the statistical

tools being developed at the same time in the work of Francis Galton, Karl Pearson,

and G. Udny Yule.

Three major developments have shaped survey analysis since the 1940s. The

emphasis on closer relations between theory and research has led to greater

concern with conceptualization and index formation , as well as with the causal

interpretation of statistical relations . The rise of university research bureaus has

increased both the quantity and the quality of survey analysis. And the advent of the

large computer has brought survey analysts to contemplate once again the vision that

Yule had placed before them in 1899 the possibility of replacing the crude

assessment of percentage tables with the more powerful methods of multiple

regression and other multivariate procedures.

The structure of survey analysis

The sequence of steps in the analysis of an ideal experiment is determined largely by

the design of the study. In real life, of course, an experimenter almost always

confronts new problems in his analysis.

(1) M easur in g the parameters of some distri buti on . The concrete form of this step

may be as simple as computing percentages in a two-variable table or as complicated

as fitting a regression plane to a large set of points. Indeed, the parameters may not

even be expressed numerically; in conventional survey analysis (i.e., analysis using

percent-aged contingency tables) two-variable relations may be classified simply as

large or small.

(2) Assessing th e cri teri a for an adequate anal ysis. The reasons survey analysts give

for stopping one line of investigation and starting another often appear superficial:


42/71

42

they have run out of time, cases, or interest. On further investigation, however, it

usually appears that they have stopped for one or more of the following reasons: (a)

statistical completeness that is, a sufficiently high pro-portion of the variation in the

dependent variable has been accounted for by the variation in the independent

variables; (fc) theoretical clarity that is, the meanings of the relations already found

and the nature of the causal structure are sufficiently clear not to need further analysis;

(c) unimportance of error that is, there is good reason to believe that the apparent

findings are genuine, that they are not the result of one or another kind of error. These

three reasons, then, can be regarded as criteria for an adequate analysis.

(3) Changing the analytic model . With these criteria in mind, the analyst decides

whether to stop the analysis or to continue it, either by adding more variables or by

changing the basic form of the analysis (for example, from linear to curvilinear

regression).

Data Collection Techniques

Primary sources

In order to gather information about the various products, I personally visited a

number of retail markets and collected data pertaining to the prices of the products

offered. The market visits were useful in knowing the comparative prices and quality

of the offered brands vis--vis the competitive brands. Detail regarding the packaging

of the products were collected were collected and I also inquired about the various

sales promotion schemes followed by the three companies.By interviewing these retailers valuable information was collected. I inquired from

them about their marketing advertising and distribution strategies.

Secondary sources

Information was collected from secondary sources such as public libraries,

newspapers, business magazines.


43/71

43

Beside these the use of Internet was also made in collecting relevant information. The

data collected from the above mentioned sources has been adequately structured and

used at appropriate places in the report. This particular way of data collection was

used because of its low cost (except data collected through surfing the internet) and

less time consumption.

The information gathered included:

Their annual reports (Procter & Gamble and Johnson and Johnson).

Pamphlets.

Posters.

Press clippings.

News releases.

Newsletters.

Pictures.

Instrument for data collection

Data collection tools:

After the research problem, we have to identify and select which type of data is to

research. At this stage; we have to organize a field survey to collect the data. One of

the important tools for conducting market research is the availability of necessary and

useful data.

Primary data: For primary data collection, we have to plan the following four

important aspects.

Sampling

Research Instrument

Secondary Data - The Companys profile, journals and various literature studies

are important sources of secondary data.

Data analysis and interpretation

1. Questionnaires2. Pie chart and Bar chart


44/71

44

Questionnaires:

This is the most popular tool for the data collection. A questionnaire contains question

that the researcher wishes to ask his respondents which is always guided by the

objective of the survey.

Pie chart:

This is very useful diagram to represent data, which are divided into a number of

categories. This diagram consists of a circle of divided into a number of sectors,

which are proportional to the values they represent. The total value is represented by

the full create. The diagram bar chart can make comparison among the various

components or between a part and a whole of data.

Bar chart:

This is another way of representing data graphically. As the name implies, it consist

of a number of whispered bar, which originate from a common base line and are equal

widths. The lengths of the bards are proportional to the value they represent.

Drafting of a questionnaire

Limitations

Every study has certain limitations. In my study, also there were certain limitations,

which I could not able to solve.

1. The research was conducted in a very small area.

2. My research work period witness the biggest ups and downs in product sale of

only one brand, which affected the perception of the customer. This was

biggest drawback of my study.

3. Time factor was also important for me.

4. I had only found the upper-middle class family to fill up the questionnaire, but

generally, an average middle class family was required for the study.

5. The sample size is also very small which represent my research on consumer

behaviour.


45/71

45

6. Because of illiteracy, it was a time consuming method in which continuous

guidance was required.

7. Questionnaire method involves some uncertainty of response. Co-operation on

the part of informants, in some cases, was difficult to presume.

8. It is possible that the information supplied by the informants may be incorrect.

So, the study may lack accuracy .


46/71

46

CHAPTER 4

DATA ANYLYSIS AND

INTERPRETATION


47/71

47

Data Preparation, Interpretation and Analysis

Analysing survey data is an important and exciting step in the survey process . It is

the time that you may reveal important facts about your customers , uncover

trends that you might not otherwise have known existed, or provide irrefutable facts

to support your plans . By doing in- depth data comparisons , you can begin to

identify relationships between various data that will help you understand more

about your respondents, and guide you towards better decisions.

This article gives you a brief overview of how to analyse survey results . It does not

discusses specific usage of eSurveysPro for conducting analysis as it is intended to

provide a foundation upon which you can confidently conduct your own surveyanalysis no matter what tool you use.

Three Common Mistakes

Before you dive into analysing your survey results, take a look back at the big picture .

What objectives were you trying to accomplish when you created your survey? Did

your survey instrument meet those objectives? Is the data you collected the right

data ? Do you have sufficient data to properly reach a conclusion ?

Although data analysis is the wrong time to try and rewrite your survey

instrument , it is important to remember the scope of your project and stick to it.

Many first time surveyors attempt to read "between the lines" while analysing data.

They attempt to answer questions that were not asked by making inferences and

assumptions from those that were asked. Doing so amounts to nothing more than

guesswork . To avoid this temptation, remember this simple rule:

Rule 1: If you did not ask you do not know.

Another common mistake that many first time surveyors make is to attempt to

change data to compensate for poor question design . For example, if a question

asked a respondent to indicate his total household income using a scale of values, a

mean and median cannot be calculated. Many people try to get around this by

assigning each response a value representing the range. Even if the adjustment is

made consistently across all responses, the resulting calcul

Documents

Minor Project Final Draft Submitted