A DISSERTATION REPORT ON ADVERTISING STRATEGIES OF FMCG WITH SPECIAL REFERENCE TO HUL (HINDUSTAN UNILEVER LIMITED)

Submitted To: Mrs. Priyanka Grover (Faculty of Management department) Semester

Submitted by: Irasad Ansari MBA 4th Roll No.

10290500045

Q

Submitted To

SARASWATI INSTITUTE OF MANAGEMENT AND TECHNOLOGY Affiliated by: (Uttarakhand Technical University Dehradun) 12Km on Rudrapur-Gadarpur Road, P.O. PremNagar via Gadarpur(U.S.Nagar) Uttarakhand Website: www.simtrdr.org. Email:simt@rediffmail.com

ACKNOWLEDGEMENT

Hard work & dedication is a key to success. No task is the single mans effort. Similarly this project report has been made possible through the direct & indirect cooperation of various persons to whom I wish to express my gratitude. I owe a deep sense of gratitude of Mrs. Priyanka Grover (internal guide) and Mrs. Puja Johri (H.O.D of Management Department) for their valuable support.

(IRASAD ANSARI)

PREFACE

The most significant resource of any organization is people. Such claims appear in the organizations annual report and mission statement. I am extremely happy to place before the esteemed teachers and management the dissertation entitled Advertising Strategies of FMCG with Special Reference to HUL(Hindustan Unilever Limited). Now a days absenteeism and turnover of employees are serious problem for industry and it is quiet similar in all countries. These problems are caused by several factors which are appeared managers from should undesirable be concern consequences. about these Therefore

problems and to check them so as to maintain efficiency and stability in industry.

DECLARATION

I am the student of SARASWATI INSTITUTE OF MANAGEMENT & TECHNOLOGY (RUDRAPUR) pursuing (MBA), hereby declare that this Dissertation Report ADVERTISING STRATEGIES OF FMCG WITH SPECIAL REFERENCE TO HUL(Hindustan Unilever Limited) has been prepared on the basis of the information provided and the work assigned to me. All the data given, is true to the best of my knowledge and prepared by my on efforts and with the consent of the concerned industry guide and the faculty at the college. The recommendations are made keeping al the costs, expenses, and technical barriers as constant, dissertation is the result of my own efforts ADVERTISING STRATEGIES OF FMCG WITH SPECIAL REFERENCE TO HUL(Hindustan Unilever Limited), prepared by me is my original work. This Dissertation report is totally prepared up to my own efforts and has not been copied from any other sources.

SUPERVISIOR SIGNATURE

HOD SIGNATURE CANDIDATE

NAME OF

MRS. PRIYANKA GROVER (DEPT. OF MGMT.)

MRS. PUJA JOHARI (DEPT. OF MGMT.)

IRASAD ANSARI MBA 4th SEM ROLLNO.1

0290500045

LIST OF CONTENTS COLLEGE CERTIFICATE TITLE PAGE ACKNOLEDGEMENT PREFACE DECLERATION

CHAPTER-1 NEED OF THE STUDY BACKGROUND

CHAPTER-2 OBJECTIVE OF PROJECT RESEARCH METHODOLOGY SCOPE OF PROJECT LIMITATION OF PROJECT

CHAPTER-3 WHAT IS ADVERTISING ADVERTISING PROCESS BENEFITS OF ADVERTISING COMPANY PROFILE DIFFERENT ADVERTISING STRATIGIES OF HUL

CHAPTER-4 DATA ANALYSIS & INTERPRETATION SWOT ANALYSIS

CHAPTER-5 CONCLUSION SUGGESTION & RECOMMENDATION BIBLIOGRAPHY

NEED OF THE STUDY

ADVERTISING is any paid form of no personal presentation and promotion of ideas, goods or services by an identified sponsor. Organizations handle their advertising in different ways. In small companies advertising is handled by someone in the sales or marketing department, who works with an advertising agency. A large company will often set up its own advertising department, whose manager reports to the vice president of marketing. The advertising departments job is to propose a budget; develop advertising strategy; approve ads and campaigns and handle direct mail advertising, dealer displays, and other forms of advertising. Most companies use an outside agency to help create advertising campaign and to select and purchase media. In developing a program, marketing managers must always start by identifying the target market and buyer motive. Then

they can make five major decisions in developing an advertising program known as ---

MISSION: what is the advertising objective? MONEY: How much can be spent? MESSAGE: what message should be sent? MEDIA: what media should be used? MESURMENT: how should the result is evaluated?

The role of advertising depends on how much importance is attributing to advertising relative to other promotion mix elements in the companys marketing programmed. This would be determined by considering various factors such as consumer behavior, competitive situation and product category etc. Advertising is known to facilitate sales rather than accomplish the complete selling function. This helps in making certain important assumptions. Most advertising help in producing psychological effect and can help in changing only mental states of audiences and predispose them toward purchase of advertised product.

Advertising is a form of communication and its basic responsibility is to deliver desired information to the targeted audience.

The outcome of my study will help various FMCG to find out the answer of following questions----- How does advertising affect the value of products? Does advertising promote competition or discourage it? How does advertising affect overall consumer demand? What is the effect of advertising on consumer choice? Does advertising make people more materialistic? Does it force people to buy things they dont really need? What is the impact of advertising on art &culture of a society?

BACKGROUND

Advertising and promotions is bringing a service to the attention of potential and current customers. Advertising and promotions are best carried out by implementing advertising and promotions plan. The goals of the plan should depend very much on the overall goals and strategies of the organization, and the results of the marketing analysis, including the positioning statement. The plan usually includes what target markets you want to reach, what features and benefits you want to convey to them, how you will convey it to them (this is often called your advertising campaign), who is responsible to carry the various activities in the plan and how much money is budgeted for this effort. Successful advertising depends very much on knowing the preferred methods and styles of communications of the target markets that you want to reach with your ads. A media plan and calendar can be very useful, which specifies what advertising methods are used and when.

For each service, carefully consider: What target markets are you trying to reach with your ads? What would you like them to think and perceive about your products (this should be in terms of benefits to them, not you)? How can you get them to think and perceive that? What communications media do they see or prefer the most? Consider TV, radio, newsletters, classifieds, displays/signs, posters, word of mouth, press releases, direct mail, special events, brochures, neighborhood newsletters etc.

What media is most practical for you to use in terms of access and affordability (the amount spent on advertising is often based on the revenue expected from the product or service, that is, the sales forecast)? You can often find out a lot about your customers preferences just by conducting some basic market research methods. The following closely related links might be useful in preparation for your planning.

OBJECTIVE OF THE STUDY

A study of media strategy and fact as they related to an advertising campaign explore media analysis selection and advertising campaign. To show the benefits of global advertising. To identify the problem in international advertising. To describe the step involved in designing a promotion campaign.

RESEARCH METHODOLOGY

Research methodology is simple framework or plan for the study that is as guide in collection and analyzing the data. It is the blue print that is followed in completes the study. Thus, good research methodology ensures the completion of project efficiency and affectivity. Since there are many aspect of research methodology, the line of action has to be chosen from the variety of alternatives, to choose the suitable method through the assessment from various alternatives. Research methodology gives the researcher an opportunity to put forward his argument for having opted for certain alternatives and also at the same time he can justify his ruling out some other possibility likes. Why research study has been undertaken, how the research problem has been formulated what data has been collected, what particular technique if analyzing the data has been used and lot of similar type question are usually answered when we talk of research problem in study. Keeping in view the above stated objectives the following methodology was adopted:

The Marketing Research Process

Define the problem and Research Objectives: - The first and main step of any research is to define the relevant problems or objective for which the researcher wants to do research

Develop the research plan: - To makes the plan for overall research as how, when, where and from whom researcher will collect the data.

Collect the information: - The information can be collected by primary data or secondary data, or by the combination of both methods.

Analyze the information: - After collecting the data the next step is to analyze the information

Present the findings: - To make a summary on the basis of analyzing the collect data and find out the situation

Make the decision: - The last step is to take a decision on the basis of finding that what action should be regarding the findings

METHODS OF DATA COLLECTION:-

SECONDARY DATA Magazines Business Journals Internet Company Reports

SCOPE OF THE STUDY

The role of advertising depends on how much importance is attributing to advertising relative to other promotion mix elements in the companys marketing programmed. This would be determined by considering various factors such as consumer behavior, competitive situation and product category etc. Advertising is known to facilitate sales rather than accomplish the complete selling function. This helps in making certain important assumptions. Most advertising help in producing psychological effect and can help in changing only mental states of audiences and predispose them toward purchase of advertised product. Advertising is a form of communication and its basic responsibility is to deliver desired information to the targeted audience. The outcome of my study will help various FMCG to find out the answer of following questions----- How does advertising affect the value of products? Does advertising promote competition or discourage it? How does advertising affect overall consumer demand? What is the effect of advertising on consumer choice? Does advertising make people more materialistic? Does it force people to buy things they dont really need? What is the impact of advertising on art &culture of a society?

LIMITATION OF PROJECT

Though HUL (Hindustan Unilever Limited) seems to be ruling the roost in various segments of household goods industry, findings suggest that its marketing strategies are not without loopholes. Let us have a look at these loopholes or limitations in brief. One very striking limitations is the fact that even though these products with all-pervasive marketing and distribution channels, flourishing increasingly in different parts of the world there appears to be a visible lack of channels providing them substantial access to semi-urban and rural areas. In other words, the products of HUL have a weaker grassroots bases. The availability of these products to common people does not only depend on marketing network, but also on the advertising strategies adopted by HUL. On this count culinary products Dont seem to offer much to create any stir and betray manifest upward trends in terms of widening consumer base. The pricing strategy adopted by HUL shows considerable fluctuation which has led the consumer base to remain almost stagnant in many segments. Usually, the prices of these products are too high to make these affordable to the common masses and particularly those belonging to low income groups. This phenomenon seems to be most evident in culinary goods segment, which constitutes the backbone of HULs industrial base.

Agricultural pursuits have not yet attained the status of industrial activities to a considerable degree. So, the supply mechanism adopted by HUL for the raw materials tends more often to suffer from a kind of unpredictability syndrome in terms of communication and planning. On certain occasions, the readily available agricultural input is too low to cater to the needs of manufacturers because cultivation for industrial Production or industry-oriented farming is not popular concepts even today in many countries of the world including India. Though, the facilities of transportation and logistics for the supply of raw material dont lack substantiality as much in case of HUL as most other players in the industry even HUL is not totally luinune to the problems posed by it. On many occasions, transportation costs are too high, which affect the overall pricing strategy adopted by HUL. HUL manufactures a large range of products along with those we call culinary products. This diversification in products. But culinary products are usually bracketed with other (major) products in case of these companies. So, no serious or special attention is paid to devising separate or exclusive strategies for these products. It makes their brand name rather than considerations of their qualitative excellence the most.

INTRODUCTION OF TOPIC

ADVERTISING

DOING BUSINESS WITHOUT ADVERTISING IS LIKE WINKING AT A GIRL IN THE DARK; YOU KNOW WHAT YOU ARE DOING, BUT NOBODY ARE DOES According to the American Marketing Association, Chicago adverting is any paid form of non personal presentation of ideas, goods and services by an identified spoor. Advertising is a form of persuasive communication with the public. The communication is usually one-sided from the Advertiser to the public The object Advertising is:(1) Inform customers of the goods and services. (2) Brings out the product use Ps (3) Calls for or invites people to buy the product (4) Mass communication (5) Attract attention (6) Lousing interest (7) Building desire (8) Obtaining action.

ADVERTISING PROCESS:The Frozen Products Division of HUL follows the advertising procedures laid down by the company. The advertising agency also adheres to the company norms. A clear sequence of activities is followed. This has been outlined below: 1. Usage and Attitude Study Before a new product or advertising idea is involved, a complete quantitative research study is carried out in order to fully understand the needs, wants, preferences, purchases and consumption habits of the target segment. The results of the study typically point out any opportunities that can be exploited in terms of unsatisfied consumer needs. On the basis of the above results, a new product or advertising concept is evolved. 2. Concept Testing Once the new concept has been thought of, it goes into qualitative research. This qualitative research primarily focuses on testing the acceptance of the concept by the target segment as well as the evolving of an appropriate positioning plank. The positioning could be attribute, cost or benefit based. Based on consumer feedback, an appropriate positioning platform is determined.

3.

Agency Brief Once the concept testing is successfully complete, the Brand Manager prepares a brand positioning statement. This is a description of the brand and includes the product description, likely brand name, category, name, variants (if any) and key brand benefits (sensory, functional and emotional). An agency brief is then prepared for the Agency, which includes the BPS as well as answers to the following questions:

4.

Why do we want new advertising? Whom are we talking to? What is the benefit to be perceived by the consumer? Animating Testing - The storyboard is developed by the agency. After this has been approved by the client, the anima tics go into testing. These are advertisements made from frame-by-frame shots of the storyboard with appropriate music/dialogue/voice over. This is more economical when compared to shooting the actual advertisement. The anima tics are shown to the sample audience for feedback and frame-by-frame analysis. The name, product design, ambience, music and overall purchase intention after viewing the advertisement are measured. Brand personification may be included. If the results are positive, the advertising concept is frozen.

5.

Media Brief This is given to the media planner and is similar to the agency brief. However, it includes media vehicles desired required awareness, frequency (number of exposures) and reach (% target segment who should view it).

6.

Post Launch Dipstick After the advertisement is released, a post-launch study may be conducted in order to gauge advertising effectiveness. This is typically conducted among users as well as non-users. It measures advertising recall, awareness of the advertisement and the brand, intention to try after viewing the advertisement overall purchase intention, etc.

BENEFITS OF ADVERTISING:-

Benefits of affiliate program:

Opportunity to reach a large audience. You will have up-to-the minute statistics reports and campaign management.

You can choose your campaign duration, from one week to one year.

Advertise to a motivated audience of new parents, voyeurs and teens.

In my experience companies advertise because it has been the traditional

thing to do. Certainly it has delivered the most compelling results, but maybe it's because that has been the primary medium of communication of advertising agencies. I truly believe that companies would be well served by looking at all of the media communications available to them and then make the decisions that will give the best ROI for the long and short term. Question everything! Is the media able to reach your specific target audience and get a transfer of trust that moves them to become your customers? Over the years I have used "Balloon grams" through traditional advertising and everything in between to reach consumers of client's products. In conclusion you must look at the long term growth but at the

same time get traffic to the store this week, so it is a balance of effective communications across a variety of media that will enable you to do just that. The big key is Integrated Marketing Communications and a consistent message delivered across all media

There are several possible objectives for advertising, and different companies have different reasons for advertising the way they do. When you have an awareness problem, advertising is a way to increase awareness. When you have an alternate use that people may not know about, advertising is a way to tell them about it. When you have a product improvement, advertising is a way to get Prier-rejecters to think again about their decision. And, of course, advertising is a classic way to create, explain, and reinforce a brand's positioning.

The objectives are all different, and the metrics you'll use need to recognize your particular objectives. Some companies see advertising as a longterm investment. They expect advertising to sustain a brand over a long period of time. They'll want to track consumer attitudes, brand image, and (perhaps) unaided awareness. Other companies want to create quick awareness of a new brand or a product change. They'll want to track advertising awareness and brand awareness (aided andunaided). Still other companies haven't even thought about their objectives. They just like to see their name all over the place. They don't need to spend

any money measuring effectiveness. They're advertising to the board room anyway, not the consuming public.

Net, like so many other things, it depends. There's no one-answer fits all.

O.K so far you have reached certain aspects of the question, not specific enough.

but still the answers are

I could summarize them and say that brand positioning, awareness, informing ability, image enhancement and audience reach are the qualitative factors and benefits that the decision maker takes into account in addition to expected profit - sales, when he is about to choose between alternate advertising strategies and mediums. So I am asking is it possible, for a start, to build a list of those distinctive qualitative benefits and factors that affect our advertising decisions when we have to evaluate and choose between different advertising mixes strategies. Is there any bibliography answering specifically this fundamental (in my opinion) question? Thanks everybody for participating in this discussion.

For the record, I would not categorize awareness as a qualitative factor. It's clearly measurable and track able, and it's an objective that is often the controlling one.

The progression is awareness, understanding (of the positioning benefit),

preference, intent to purchase, purchase and repurchase. Each of those steps can be directly measured, and each is a legitimate objective of advertising. (Purchase and repurchase, of course, have a number of prerequisite factors, not just advertising.)

I'm not sure where you're going with the line of thinking. Different companies have different objectives for advertising. Usually it's to generate incremental sales, but not always. And sometime it's longer-term and sometime it's shortterm. When you ask why companies advertise, it sounds like you're looking for a single, specific answer.

Magazines and newspapers have been advertising media for more than two centuries; for many years, they were the only major media available to advertisers. With the growth of the broadcast media, particularly television, reading habits declined. More consumers turned to TV viewing not only as their primary source of entertainment but also for news and information. But despite the competition from the broadcast media, newspapers and magazines have remained important media vehicles to both consumers and advertisers.

Thousands of magazines are published in the United States and throughout the world. They appeal to nearly every specific consumer interest and lifestyle, as well as to thousands of businesses and

occupations. By becoming a highly specialized medium that reaches specific target audiences, the magazine industry has prospered. Newspapers are still the primary advertising medium in terms of both ad revenue and number of advertisers. Newspapers are particularly important as a local advertising medium for hundreds of thousands of retail businesses and are often used by large national advertisers as well.

Magazines and newspapers are an important part of our lives. For many consumers, newspapers are their primary source of product information. They would not think of going shopping without checking to see who is having a sale or clipping coupons from the weekly food section or Sunday inserts. Many people read a number of different magazines each week or month to become better informed or simply entertained. Individuals employed in various occupations rely on business magazines to keep them current about trends and developments in their industries as well as in business in general. While most of us are very involved with the print media, it is important to keep in mind that few newspapers or magazines could survive without the support of advertising revenue. Consumer magazines generate an average of 47 percent of their revenues from advertising; business publications receive nearly 73 percent. Newspapers generate 70 percent of their total revenue from advertising. In many cities, the

number of daily newspapers has declined because they could not attract enough advertising revenue to support their operations. The print media must be able to attract large numbers of readers or a very specialized audience to be of interest to advertisers.

The role of magazines and newspapers in the advertiser's media plan differs from that of the broadcast media because they allow the presentation of detailed information that can be processed at the reader's own pace. The print media are not intrusive like radio and TV, and they generally require some effort on the

part of the reader for the advertising message to have an impact. For this reason, newspapers and magazines are often referred to as highinvolvement medias Over 80 percent of U.S. households subscribe to or purchase magazines, while the average household buys six different magazines each year.2 Newspapers are received in nearly two-thirds of American households daily. Most magazines, however, reach a very selective audience. Like radio, they can be valuable in reaching specific types of consumers and market segments. While both magazines and newspapers are print media, the advantages and disadvantages of the two are quite different, as are the types of advertising each attracts. This chapter focuses on these two major forms of print media. It examines the specific advantages and limitations of each, along with factors that are important in determining when and how to use newspapers and magazines in the media plan.

Entertainment needs of a wide range of readers in both the consumer and business markets. Magazines are the most specialized of all advertising media. While some magazines-such as Reader's Digest, Time, and TV Guide-are general mass-appeal publications, most are targeted to a very specific audience. There is a magazine designed to appeal to nearly every type of consumer in terms of demographics, lifestyle, activities, interests, or fascination. Numerous magazines are targeted toward specific businesses and industries as well as toward individuals engaged in various professions (Exhibit 12-1). Over the past several decades, magazines have grown rapidly to serve the wide variety makes magazines an appealing medium to a vast number of advertisers. Although TV accounts for the largest dollar amount of advertising expenditures among national advertisers, more companies advertise in magazines than in any other medium. Users of magazines range from large consumer products companies such as Procter & Gamble and General Motors, which spend over $400 million a year on magazine advertising, to a small company advertising scuba equipment in Skin Diver magazine Companies advertise to get new customers

customers, keep existing ones, and to confirm to recent

they did the right thing. They advertise to tell shareholders they are doing something active to keep the company growing. They advertise to tell government they are there. And sometimes they

advertise to win awards. But most of all, they advertise because they've grown to expect they need to.

Competitive advantage

Advertising during a sluggish economy clearly creates a competitive advantage, according to the study, with a majority of executives agreeing that seeing a company advertise during slower times makes them feel more positive about the companys commitment to its products and services. But perhaps most important is staying at the top of buyers minds when purchase decisions are made. For advertisers interested in maximum profit from their investment in b-to-b media, these research results indicate that advertising frequently and capitalizing on the synergistic effect of print, Web sites and trade shows is a sure path to increasing awareness, interest and purchase, said the study authors. Add to that the fact that there have been dramatic increases in the time executives spend visiting b-to-b Web sites over the past three years and online advertising is a winning strategy. Moreover, the study findings are consistent across industry sectors, making results relevant regardless of business category.

Long-term investing

While the Yankelovich/Harris study offers compelling data to support the benefit of advertising especially in slower times, other business gurus also support the theory. Advertising in a down economy is even more important than advertising during the good times, says Joyce Gioia, president of the Herman Group, a firm of strategic business futurists in Greensboro, N.C. Thats when you can build market share. Thats when you have less competition for share of mind. While others are in a cocoon, hibernating until things blow over, its a great time to invest in your business. Gioia says sign industry suppliers need to establish themselves as the brand of choice and halting advertising during tough times is counteractive to that goal. The bottom line is clear: If a company is not communicating with customers when they enter the market, then that company will not be considered in the buying decision. That fundamental truth does not change, regardless of the economy. While many companies readily understand the value of short-term advertising generating new sales, generating repeat business from existing customers and generating new leads that turn into future sales

it can be more difficult to comprehend the long-term value. Think of a snowball rolling down a mountain consistent advertising has a cumulative effect. The more familiar buyers are with your brand, the more likely they are to purchase the brand. Cross media approach

A cross media approach is the best approach, according to experts, because it allows your company to stay in front of customers consistently. The Yankelovich/Harris study shows executives value magazines, Web sites and trade shows for different reasons. B-to-b magazines are favorably evaluated with respect to being highly credible sources and providing information you can trust. B-to-b Web sites rate high for being primary sources of research and providing access to the latest information. And b-to-b trade shows are highly regarded for enabling interaction with industry peers. To stay on top of developments in your field, its important to seek information from multiple media sources, like business-to-business magazines, Web sites and trade shows, said the study authors. DoubleClick, leading provider of marketing tools for advertisers, direct marketers and Web publishers, recently conducted a cross media study that compared the relative audience reach of Internet sites, network TV programs and consumer magazines.

"Earlier this year we talked to over 200 marketers who told us their top reason for not spending more online was that their customer was not online," says Susan Sachatello, chief marketing officer, DoubleClick. "In comparing these mediums side-by-side using industry standard metrics, this study demonstrates that both in aggregate and in key target groups, the Internet is in fact a mainstream mass-market medium and that marketers should be going online to reach their customers." So what works best on the Web? Experts say banner ads are the most effective tool because they build the brand and generate leads. And since online advertising is less expensive than traditional print media, TV and direct mail, the online channel makes more sense in a down economy.

Rich media rules

Double Clicks Ad Serving Trend Report gives deeper insights about what works on the Web. Double Clicks ad serving data reveals a major variance in the click-through rates of rich media ads (2.4 percent), which is six times higher than non-rich media ads (0.4 percent). Rich media uses a combination of voice, interactive video, streaming video and data sharing. The ads, then, are more interactive than static banners.

Double-Clicks also found that Flash increased branding metrics by 71 percent for three different-sized ads measured, demonstrating the branding power of richer media. "While click-through rate is only one method of assessing online advertising effectiveness, its stability over the past several months reflects the mainstream adoption of online advertising at levels consistent with traditional direct response rates," says Doug Knopper, vice president and general manager of advertiser solutions at DoubleClicks. "We are very encouraged by the growth of rich media usage and the significantly higher click-through rates that these formats have been generating, which together reflect the increasing sophistication and performance of the online advertising medium."

When is the best time to advertise?

Regardless of the medium, the Yankelovich/Harris concludes that advertising during all economic times is critical to the future success of companies. Ninety-nine percent of those surveyed said it is important to keep abreast of new products and services during tough times and 97 percent said it is important to continue to invest in these products and services to remain competitive in the future.

The study stresses that executives are not going to let their guards down even during slower economic times they must stay current on what is new in the industry and must position their organizations for the future. Advertisers, then, must not let their guards down, either, say experts.

COMPANY PROFILE HUL (Hindustan Unilever Limited)The company was incorporated on 17th October, 1933 under the name of Lever Brothers (India) Pvt. Ltd. (LBIL). It set up its manufacturing units in Bombay and Calcutta an associated

company viz., Hindustan Vanaspati Mfg. Co. Pvt. Ltd. (HVM), was

earlier incorporated on 27th November 1931 which set up a vanaspati factory in Bombay. Both LBILK and HVM were wholly owned subsidiaries of Unilever Ltd., London, U.K. HVM later acquired three more vanaspati factories at Shamnagar (West Bengal), Tirchirapalli (TamilNadu) and Ghaziabad (U.P) In order to market the toilet preparations manufactured by LBIL or imported from Unilever companies, a marketing company under the name United Traders Pvt. Ltd. (UTL) was incorporated on 11th may, 1935 as a wholly owned subsidiary of LBIL. In 1944, the

management of LBIL and HVM was integrated. In November 1956, HVM and two small associated companies viz. William Goss age & Sons (India) Pvt. Ltd and Joseph Cross field & Sons (India) Pvt. Ltd., which were wholly owned subsidiaries of Unilever Ltd., were amalgamated with LBIL and the name was changed to Hindustan Lever Ltd. From 23rd October, 1956 activities of UTL were taken over by its holding Company LBIL. With the amalgamation of business under one company, Indian capital was introduced in this integrated

business in 1956. HLL has been growing very rapidly, especially in 1996 the growth was 88.6% HLL became the second private company in India after Reliance Industries to cross the Rs 10000 core mark in 1998. At present its valued at Rs. 11764.31 crore. 1 its rapid growth has given HLL place in the top 5companies

regularly in annual BT-500 survey. This huge success has come due to: Merger with Ponds India Limited Launch of 40 new products Doubling of rural distribution network from 50,000 to one lakh villages Launch of a marketing scheme, Operation Bharat, across 22 states. It can be said beyond any doubt that HLL is an undisputed leader in FMCG products in urban as well as rural area. HLL caters to 850 million people in India which becomes 85% approx. of the total population. Hence the study of HLL can give us a wide knowledge in the fields like successful

implementations of marketing strategy in urban and rural India cutting across so many cultural, social, regional, religious, linguistic barriers.

Products of HUL

BRU

Bru, launched in 1969, created history in the first year of launch by growing to a record market share of 21%. Ever since, it has grown from strength to strength.

Bru 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 the Instant Coffee category - whether in coffee-chicory blends, refill packaging, vending operations, or more recently the Lowunit-price packs. The Bru franchise also includes the Bru Roast & Ground, India's most popular Roast & Ground Coffee brand, and Bru Malabar Roast & Ground which is available in select geographies.

CLINIC PLUS Clinic Plus Health shampoo was launched in India in the year 1987. It is India's largest selling shampoo, offering the five most important hair health benefits: strengthens weak hair, prevents hair breakage, softens rough dry hair, shine for thick and healthy hair, and contains anti-dandruff ingredient. The franchise also includes Clinic All Clear Total, first introduced in 1996. It is a dual shampoo it not only fights the last dandruff flake, but also adds back lost nutrients to make hair healthy and beautiful. Clinic All Clear Total is a dandruff solution for everyday use.

CLOSE-UP Close-up is the original youth brand of India. The first brand targeting youth in the oral care market, with an edgy and youthful image which stays relevant till date. Ever since its launch in 1975, Close up has broken every rule in the book on how toothpastes should behave! Close up was the first gel toothpaste to be launched in India and has led the gel toothpaste segment ever since. In 2004, Close up was re-launched with a bang. And this time it was packed with the power of Vitamin Fluoride System a powerful mix of Vitamins, Fluoride, Mouthwash and Micro whiteners, the perfect combination of ingredients for fresher breath and stronger, whiter teeth. Close up became the first Gel toothpaste with Fluoride in the Indian Market! The brand umbrella also includes Close up Lemon Mint, gel toothpaste with the whitening benefits of lemon. The latest entry in the Close up stable is Close up Milk Calcium revolutionary new toothpaste with the goodness of milk calcium in an industry-first core-in-sheath format, with white milk calcium nutrient on the inside and a refreshing blue gel on the outside. FAIR & LOVELY

A woman's passion for beauty is universal and catering to this strong need is Fair & Lovely. Based on a revolutionary breakthrough in skin lightening technology, Fair & Lovely was launched in 1978. The Hindustan Lever Research Centre (it is among the largest research establishments in India's private sector, including pharmaceutical companies, with facilities in Mumbai and Bangalore) deployed

technology, based on pioneering research in the science of skin lightening to develop Fair & Lovely. The formulation is patented. Its formulation acts safely and gently with the natural renewal process of the skin, making complexion fairer over a period of six weeks. Fair & Lovely is formulated with optimum levels of UV sunscreens and Niacin amide that is known to control dispersion of melanin in the skin. It is a patented and proprietary formulation, which has been in the market for 25 years. Niacin amide (Vitamin B3) is a water-soluble vitamin and is widely distributed in cereals, fruits and vegetables - and its use in cosmetic formulations has been known for various end benefits. The UV components of the formulation are scientifically chosen and used at optimum levels to provide wide spectrum protection against UV rays of the sun. Specifically, this patented formulation offers a high UVA protection, which is more relevant to Asian skin than plain SPF protection creams sold in the West. All the active ingredients in the Fair & Lovely formulation function synergistically to lighten skin colour through a process that is natural, reversible and totally safe.

The brand today offers a substantive range of products, including Ayurvedic Fair & Lovely Fairness cream, Fair & Lovely Anti-Marks cream, Fair & Lovely Oil control Fairness Gel, Fair & Lovely for Deep Skin and Fair & Lovely Fairness Soap. The latest has been the Perfect Radiance, a complete range of 12 premium skincare solutions from Fair & Lovely.

HAMAM Launched in 1934, Hamam has always been a reliable option for consumers over years. The brand has withstood the test of time and has given the consumers the confidence and assurance of being a soap that is safe on skin. Hamam is manufactured in the most modern soap plants world-class quality control system. Hamam contains polyols, which are known to be good moisturizers. Hamam also contains Aloe Vera, Tulsi and Neem extracts. Hamam soap is made from a blend of vegetable oils. The optimum grade of Palm oil and coconut oil is mixed in the right proportion to give a soap that is lasting, gives lather which is stable and can effectively remove oil, dirt from the surface of the skin.

KISSAN

Acquired by Hindustan Lever Limited in 1994, the Kissan category consists of 'deliciously wholesome products for kids to grow up.'

The Kissan range consists of ketchup and other sauces, jams, squashes and ready-to-drink products. For mothers and children, Kissan is today one of the most trusted brands in the country. Kissan continues to be a pioneer in the categories that it operates in.

ANNAPURNA SALT Annapurna Salt, first introduced in 1997, was relaunched in 2001 with a breakthrough technology, patented in India and several other countries. This technology helps encapsulate iodine with salt. It thereby prevents the loss of iodine from salt, either during its storage and transportation or cooking.

Iodine deficiency is a serious health issue in India. About 278 million people are at risk of iodine deficiency disorders. Iodine deficiency not only leads to goiter, but also has an impact on the mental development of growing children.

The International Council for Control of Iodine Deficiency Disorders (ICCIDD) has endorsed Annapurna Salt. Annapurna has also taken initiatives to educate consumers about the benefits of iodine and its

effect on the mental development of growing Children.

Launched nationally in 1998, Annapurna Atta is made with patented technology. It absorbs more water than ordinary atta when kneaded, resulting in softer chapatis.

In 2001, it was fortified with iron and vitamins. The benefit is very relevant because over 60% of women and children are iron deficient.

KWALITY WALL Kwality Wall's, launched in 1995, is the company's master brand for ice cream. Kwality Wall's has combined state-of-the art technical knowhow of Unilever - the global leader in ice cream - with a deep insight of the Indian market, to deliver a range of superior quality products under its international brands. Key launches include Cornetto, Feast, Viennetta, and a range of Sundaes, and also exciting eats for children specifically, like Lime Punch or Sunshine Zing Cone. Kwality Wall's ensures that while each of its offerings is unique in taste and flavour, they are also accessible to more consumers through breakthrough cost reengineering and value delivery.

LIFEBUOY Making a billion Indians feel safe and secure by meeting their health and hygiene needs is the mission of Lifebuoy. The world's largest selling soap offers a compelling health benefit to the entire family. Launched in 1895, Lifebuoy, for over a 100 years, has been synonymous with health and value. The brick red soap, with its perfume and popular Lifebuoy jingle, has carried the Lifebuoy message of health across the length and breadth of the country. The 2005 and 2006 relaunches have been turning points in its history. The new mix includes a new formulation and a repositioning to make it more relevant to both new and existing consumers. Lifebuoy is now a milled toilet soap with a new health fragrance and a contemporary shape. The new milled formulation offers a significantly superior bathing experience and skin feel. This new mix has registered conclusive and clear preference among existing and new users. The new Lifebuoy is targeted at today's discerning housewife with a more inclusive "family health protection for my family and me" positioning. Lifebuoy has made a deliberate shift from the male, victorious concept of health to a warmer, more versatile, more responsible benefit of health for the entire family. At the upper end of the market, Lifebuoy offers specific health benefits through Lifebuoy Gold and Plus. Lifebuoy Gold (also called Care) helps

protect against germs which cause skin blemishes, while Lifebuoy Plus offers protection against germs which cause body odour.

SURF EXCEL A pioneer in the Indian detergent powder market, Surf Excel has constantly upgraded itself over the years, to answer the constantly changing washing needs of the Indian homemaker. Today Surf Excel offers outstanding stain removal ability on a wide range of stains. This means that mothers now have the freedom to let their kids experience life without worrying about stains. Surf Excel quick wash is powered with a path-breaking technology- it reduces water consumption and time taken for rinsing by 50%. It is a significant benefit, given the acute water scarcity in most of India. Surf Excel is available in 3 variants: Surf Excel Blue, Surf Excel Quick Wash and Surf Excel Automatic. So whatever be the need, Surf Excel hai na.

SUNSILK Launched in 1964, Sunsilk is the largest beauty shampoo brand in the country. Positioned as the 'Hair Expert', Sunsilk has identified different

hair needs and offers the consumer a shampoo that gives her the desired results. The benefits are more compelling and relevant since the variants are harmonised in terms of the product mix - fragrance, colour and ingredients are all well linked to cue the overall synergy. The range comes in premium packaging and design. The accent is on "It knows you, and hence knows exactly what your hair needs".

DIFFERENT ADVERTISING STRATEGIES FMCG SECTOR ADVERTISING STRATEGYBUILDING CORPORATE IMAGE Corporate communications and public relations for building image can truly be looked upon in the context of global business and marketing as a subject about which many professionals hold firm views, but know surprisingly little about. Some see it as a

menace, as an expensive flag waving exercise which their companyn easily do without. Others regard it as a myth, arguing that publicity by of virtue its obvious nature, cannot hope to change perceived images in peoples minds. extreme are those who view corporate At the other communications

(particularly advertising as a magic formula and an instant panacea for every corporate ill. In reality it is none of these

things. it is in fact, a management tool to influence the outside world-the target group. So, the real significance of building corporate image lies in preparing and consolidating a sound global consumer base. Every company wants to have a favorable image in the global market. In case of HLL also, image-building plays the most Building

important part in determining its marketing strategy.

corporate image is concerned with building confidence and credibility by helping your target group understand you better. Familiarity in this case normally improves acceptability of who you are and what you are doing. Ignorance, on the other hand,

can lead to mistrust, or even contempt in some situations. Corporate image is built through more than one strategic means, and often a combination of activities. For instance1. 2. 3. 4. 5. Advertising corporate and even product Public Relationsexternal and internal Media Relations especially the Press Customer and Supplier Relations Community Relations good corporate citizenship

As India transits from a shod age-driven economy to a one propelled by competition the reputation and image of a company like HUL will make difference between whether it rules the market

or merely rues it.

Corporate image is what enables HUL to hold

its own against rivals like IPCL and Haldia. Good corporate image can be built if you treat it like one of the Ps of marketing the fifth P stands for Performance professional corporate performance, doing it the right way the first time. Its in this regard that creativity in PR comes to have a lions share in the entire process of corporate image building. Creativity in PR means more than just pretty pictures and good copy. It is building image with activities, which generate all-

round impact and visibility for the company. What and How is the task here. Creative corporate advertising is one route. With respect to positioning similarly, the image communication and image building activity must to able to find a right niche in the minds of the target group. The quality of the message, and activity, is vital for this. Companies which benefit most from corporate image are those who take a long-term view and commitment towards

communication and the image of their organization through it. HUL can be presented as a striking instance of it.

Image and IdentityThere may be nothing new in saying that the corporate image is in the eye and the mind of the receiver. Yet it is worth saying

again and again. An organization transmits, on a sustained basis, messages to publics. It is the reception of the message, which goes to create the intended image. In other words, corporate communication is the process that translates an identity into an image. Again, in brief, corporate image primarily refers to the image that a company has acquired with the public whereas corporate identity refers to the image a company strives to achieve, in order to build to build a reputation with its publics. In this context, decidedly, every company like HLL needs a mission. The mission is, in fact, a framework for business and all its activities, the value that drive the company to achieve the corporate goals. No less important is the belief the company has in it. The mission is the glue that holds the company together. Here, the PR and its communication strategies come into distinct focus. If the mission and the objectives of the organization have to succeed, the corporate body must communicate short-term goals, long-range objectives and even the total mission of the organization. Inadequate communications result in an ambiguous corporate image within as well as outside and lead to breakdown

in

the

co-ordination

of

all

contributing

elements

in

an

organization.

Dare To Think Beyond AdvertisingIn present situation to address the "The soprano problem", advertisers resort to shadow advertisement where the products become endemic to the setting of the show. Where the products are shown being consumed or brand name is exhibited in the background. In India, the first shadow advertisement was used in movie "Bobby" where motorcycle "Rajdoot" was advertised. Recently, there was shadow advertisement of Coca-Cola in Hindi

blockbuster "Kaho Na pyar hai". But the problem with shadow advertisement is that positioning message of the product can't be conveyed to consumers. Hence, the concept of shadow

advertisement can be extended further so that the theme of the advertising would become endemic to entertaining show. This would be no more exclusive advertising. Rather, advertising will be a part of the entertainment. But this has to be done in a delicate manner so that the information about the product is passed on to the viewers without disturbing the entertaining element of the show. If this succeeds, that would be a great break-through for advertisement. Even this should not be called

advertising anymore, as that has become an irritating word in the mind of the audience. Even though advertainment seems quite close to it, but it would be more evolved. Since in advertainment we try to advertise and entertainment comes with it. But in the recommended solution we want to entertain the audience only and advertisement is an integral part of the show. The major question would be, whether the audience would be able to comprehend the hidden positioning message? Here are few examples on how to make the positioning message integral part of the show. We have programmes like "Antakshari" in which participants take part in groups. The groups can be named after some brands and the participants would be projected as such that they would be personification of brands. Suppose one group is named Lux, the participants are expected to be beautiful women who stand for Lux. So this can be done for many programmes, which has format like this. Suppose HLL produced a soap opera and the dialogue of the characters at some point would be focussed on the products of HLL. Of course the context has to be right and should be very much along the script not that it would destroy the element of entertainment. Hence the major challenge would lie before scriptwriter and director. Even a particular character of an opera becomes very popular as the opera becomes very popular. Hence building such character, which would personify the brand and both the character as well as the

brand would grow in due course of time. However even if time constraint is removed, course content constraint comes in. But the scope of story telling is far greater. Attention grabbing will be replaced with attract attention and no zipping/zapping problem. Audience will be more receptive and comprehension of course would be dependent upon how it is executed. Practicability of the idea would be tested when it will be implemented. Hence unless it is tried and tested it can be concluded that whether it will click or not. Let's take the example of Coca-Cola, the scriptwriter would be creating situation in each episode of a family soap where there would be opportunity to celebrate and drink coke! To give another example, a multi utility vehicle with safe driving positioning plank could have exploited the plot of the recent movie "Road". If this concept clicks, there would be nothing like it for

advertisers. If it happens, in future big advertisers like HLL would be diversifying to entertainment business! Of course the ad budget of HLL is far bigger than the total budget of many entertainment houses. Irrespective of whatever positive points or negative points it has, this concept can be tried for programmes aired in pay channels simply because there is no other alternative to advertise during the programme. Besides it is expected to solve the other problems those are discussed above. Advertisement would be no

more the troublemaker and irritating. Hence catching attention would be much easier. Only testing of this idea could help us to conclude whether to roll out from the concept from programmes of pay channels to programmes of free channels.

PUBLIC RELATION

Public relations practice is the deliberate planned and sustained effort to establish and maintain mutual

understanding between the organization and its publics. By: - Institute of Public Relation (British) 1948. To understand the definition better it in important to know as to who does the word publics refer to. Public are : Shareholder : Customers : Employees : Trade Unions

GOVERNMENT RELATIONS

Government relations have two facets to it. First the PR for the government (as an organization) and second, PR with the governments as the target group. Both are important and very needed by corporations. Public relations for the government involves mobilizing public support for governments activity, for instance, family planning, control, environmental protection, beautification of cites, etc. the company generally sponsors some of these activities by providing monetary help or other resources. The basic objective of the company is to build relations with the governments, and also help for the good of the community of society.

Public relations with the government involves keeping the government politicians and bureaucratson your side. It envisages maintaining

good links with the government which will be of benefit to the company in its overall business plans and operations. Public relations with the government in some ways are quite difficult and demanding. It requires special planning and efforts for the organization to be successful. A

government, local or national, comprises many ministries, departments, individuals and personalities. Public relations people have to acquaint themselves with the working of the government, and the intricacies and people involved at various levels, and then handle things accordingly to be able to achieve what they have set out to achieve.

The government should not be looked at as an adversary. In fact, you should make all efforts to help the government and support its activities and policies as far as possible. Government leaders must be kept

informed from your side about the organizations activities and policies especially those which are contributing to the welfare and

development of the state or the nation. Such relations will be mutually beneficial in the short-term and the long-term. Corporations should,

however avoid getting involved with politics and political issues.

MEDIA RELATIONSMedia relations Is a vital tool in PR. A large amount of communications and PR are conducted through the mediaespecially the Press. When a company gets media coverage, it is not always flattering. Business is always vulnerable to attacks by the media. Media can often aggravate problemsespecially crises. As in the case of Union Carbide and HLL a few years ago. Hence, media, particularly the Press has to be handled very carefully. The media must be kept on your side. All efforts must be made to

ensure this strategically. It takes years to build a good image, but to destroy it you need just a few bad reports in the media.

It is important to build a working rapport with the media. You cannot afford unnecessary reactions and distortions. If you do go to the media then always go with a strategybe selective in the choice of media, use only influential media (especially publications in the Press), do not spread your communication too thin, go for quality rather than quantity. Selective and in-depth coverage is what you must aim at, as it is more effective and produces the desired results. let your communication be complete honest, and backed with hard facts. The organization must be able to live up to its claims and promises in media, otherwise you can be in for further problems. The efforts made by HLL in this respect have been orchestrated well to build image as well as to counter negative publicity.

FINANCIAL RELATIONSWith the growth of the Indian economy and the business sector, management of financial promotions and PR have taken on a new dimension. HLL is making special efforts to ensure the goodwill of their shareholders, investors, financial institutions, and the rest of the financial community. This is being done in the mass media and

specialized media ranging from annual reports to special brochures to audio-visuals, video films, and even corporate advertising in the Press and television.

The main target group of a company in financial PR is its shareholders and potential investors. They have to be given information they are

entitled to have, and they have to be kept interested in the company. Public relations must establish, maintain, and improve the companys image and reputation so that it can obtain funds from the public and the financial institutions on the most favorable terms when it desires so The financial and business Press, today, is very important in achieving this objective, The importance of financial PR and the need for it is seen from the number and growth of PR agencies specializing in financial promotion, advertising and PR management in India. These include well-known

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

CUSTOMER RELATIONSIn the past PR and marketing were considered separate and

unconnected activities of business in a company. Today, PR has a role

to play in marketing not only to build image, but to also help solve problems concerning a companys products or services among consumers or other special groups, and generally protecting the companys reputation at the marketplace. relations with customers, and with suppliers, in Public industrial

products/services marketing at the institutional level are gaining more and more importance today. In todays competitive market customers opt for products that are known and have an image, and are backed by quality and good after sales service. Public opinion on such aspects cannot be ignored by

marketing people. In the long run, unfavorable opinions certainly affect sales. Public relations can help in controlling and setting right some of these opinions; it is therefore essential for companies to assign some of their attention and resources to develop PR in marketing.

COMMUNITY RELATIONSToday, the relationship between corporations and the community is a vital issue in management of business organizations. It is acknowledged that business is no longer done for the sake of profits alone. Because a company functions within a community, its responsibility extends to

giving back to the community something for what it makes from it. This has been the philosophy of the Tatas in India for years; today it is accepted and is being followed by a number of other companies. This belief is now also considered important and crucial by the government, consumerists and opinion leaders. Company relations at an organization can vary from local Community welfare activities, to large scale sustainable development programmers for the betterment of lives of people. Companies have to consider the community as one of its prime target groups. The objective of PR is to help build image of the company: as a good corporate Citizen, a good company to do business with, and a good company to work for.

EMPLOYEE RELATIONSIn employee relations, communicators are vital at every level. From top to bottom, also from lower level to the top management level, and even the horizontal communications among colleagues at the same level and between functions. The basic function of communications and PR in the organisation is not just better functioning, but a fostering of goodwill, trust, and togetherness among employees.

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

DATA ANALYSIS AND INTERPRETATION 1. Year wise net sales of HUL

Graphical Representation

YEAR 2006-07 2007-08 2008-09 2009-10 20010-11

Sales in Cr 9954 10139 8828 11060 11070

YA ER

20- 7 06 0

20- 8 07 0

20- 9 08 0

20- 0 09 1

200 1 011

In 2006-07 the sales of HUL was Rs. 9954 Cr and it was Rs 10,139 Cr in 2008

where as it was Rs 11,070 Cr in 2010-11 reason being in 2010-11

2. Year wise expenditure on advertisementYEAR 2006-07 2007-08 2008-09 2009-10 20010-11 Expenditure in Rs (Cr.) 842 760 836 1008 1015

Graphical Representation

2006-07

2007-08

2008-09

2009-10

20010-11

The expenditure by HUL on advertisement has been increased from year 2009-10 to year 2010-11.

3. Year wise Net profit of HUL

YEAR 2006-07 2007-08 2008-09 2009-10 20010-11

Profit in Rs (Cr) 1755 1771 2197 2400 2500

Graphical Representation

Profit in Rs (Cr)

2006-07

2007-08

2008-09

2009-10

20010-11

The Profit of HUL has been increased from year 2009-10 to year 2010-11.

4. Year wise Total Revenue of HUL

Graphical Representation

YEAR 2006-07 2007-08 2008-09 2009-10 20010-11

Total Revenue in Rs (Cr) 10038 10245 10135 11193 11500

2006-07

2007-08

2008-09

2009-10

20010-11

Continues expenditure on advertisement has increased the revenue there by profit.

5. Respective share of revenue of various segment of

HUL in 2007Products Shop & Detergent Beverage Foods Others Exports Graphical RepresentationRevenue (%) in 2007

Revenue (%) in 2007 15 10 15 25 30

Shop & Detergent

Beverage

Foods

Others

Exports

In 2007 the highest share in total revenue was by shop and detergent section of HUL followed by export and beverage.

6. Respective share of revenue of various segment of HUL in 2008Products Shop & Detergent Beverage Foods Others Exports Revenue (%) in 2008 37 12 08 16 27

Graphical RepresentationRevenue (%) in 2008

Shop & Detergent

Beverage

Foods

Others

Exports

In 2008 the highest share in total revenue was again by shop and detergent section of HUL followed by export and beverage.

7. Respective share of revenue of various segment of HUL in 2009

Products Shop & Detergent Beverage Foods Others Exports Graphical Representation

Revenue (%) in 2009 37 11 06 18 28

Revenue (%) in 2009

Shop & Detergent

Beverage

Foods

Others

Exports

In 2009 the highest share in total revenue was by shop and detergent section of HUL followed by export and beverage. Minimum share was from food Section.

8. Respective share of revenue of various segment of HLL in 2010Products Shop & Detergent Beverage Foods Others Exports Graphical RepresentationRevenue (%) in 2010

Revenue (%) in 2010 37 10 03 18 32

Shop & Detergent

Beverage

Foods

Others

Exports

In 2010 the highest share in total revenue was by shop and detergent section of HUL followed by export and beverage. Minimum share was from food Section.

9. Respective share of revenue of various segment of HUL in 2011

Products Shop & Detergent Beverage Foods Others Exports

Revenue (%) in 2011 32 10 07 16 34

Graphical RepresentationRevenue (%) in 2011

Shop & Detergent

Beverage

Foods

Others

Exports

In 2011 the highest share in total revenue was by Export section of HUL followed by Shop.

SWOT ANALYSIS

STRENGTH ENJOYED BY FMCG INDUSTRY HUL distribution network is one of the best in the country this is the key strength converted to the company. Research & Development for improvement of products, technology innovation in the production process is another major strength of HUL. Very large spectrum of well establishes brands ensure in long run growth and above average returns. Economics of scale and economies of scope through large size and diversification. Technologically and operational support from the parent company i.e. Unilever.

WEAKNESS SUFFERED BY FMCG INDUSTRY Inappropriate diversification resulting in higher prices (because of high variety cost is higher). Very complex organization resulting in role conflicts.

Opportunities Offered by Environment

Very large population of India is tremendous opportunity for Fast Moving Consumer Goods (FMCG).

Competitor effectiveness to produce high quality, low cost produces is poor. Most of the competitors are small in size thats why the cost of production is high.

Income level of customer is steadily rises there by offering by an opportunity to sell branded products as against unbranded products.

Stable, legal, political environment that offers good potential for growth.

Threats Faced by the FMCG INDUSTRY One of the major threats the FMCG INDUSTRY is facing is from smaller companies producing smaller companies producing products similar to HLL because the production process is not highly technically. Most of the product of HLL are by nature low cost items therefore the risk involved on the part of customer is less this results in brand loyalties nor sustainable in long run.

.

CONCLUSION

A look at the contemporary profit of the global industrial segment of household goods brings it into clear focus that the situation prevailing in major markets is very much in flavor of HUL. The fact that should be acknowledged on the basis of current trends betrayed by this segment tells us that HUL veritably stand out as on indisputable market leader in this field and is sure to surge way ahead of other players in future. The competitive strength, strategic acumen and ability to reach out for a considerably larger consumer base that the company has been able to attain through the years since its inception also point to this fact categorically. An extremely pertinent views that emerges out of it amply suggests that it is the dominance of HUL operating under the banner of Unilever in most of the countries that contribute in a large measure to the creation of a market situation in which consumers are nearly forced to purchase their choice at prices that might not be in congruence with their speculations and calculative consideration of affordability something that largely determines the phenomenon called consumer behaviors. It is absolutely doubtless to assume are incomparable in term of their qualitative excellence.

It is a bit surprising to observe that HUL is the market leader even though its capable of manufacturing and marketing a vast range of products with an international consumer base. Moreover, the tie-up of Prima India with HUL reflects that the latter is not unwilling to share its technological expertise and infrastructural contrivances with others. So, in spite of the near monopoly situation caused by HULs presence in the global market, it points to a healthy flexibility in the companys fundamental approach. Another very striking aspect of HULs global marketing strategy and operations, as it has been pointed out and dwelt upon in the present study, is its enormous ability to capitalize on the resources available to it. The company has had the distinction of taking determined steps to maximize opportunities of image building in the global market. In order to accomplish this task, the management of HUL is poised to keep infusing new spirit in its HRM wing in order that it may veritably serve as an instrument for proliferating marketing prospects for HUL products. That way both internal and external marketing are taken cognizance of with identical sense of concern. This approach draws sustenance from the comprehensive international network of overseas operation centers, associates, agents and allies.

SUGGESTION & RECOMMENDATION

Based on findings and conclusions the following suggestions have been recommended. DETERGENTS (SURF EXCEL) USE SACHETS MORE FREQUENTLY Since the rural income has been increasing and consumers are becoming quality consumers of middle and lower segments so that they at least try the product.

TOOTH PASTE (CLOSE-UP) FOCUS ON MALES During a recent survey of ORG-MARG it was found that young girls were more loyal to Close-up than males and house wives target youths but housewives and much earners in the family. AGGRESSIVE MARKETING IN NORTH AND EASTERN REGIONS These are the regions where Close-up is way behind Colgate. Hence to improve its performance these markets should be attached aggressively

SHAMPOO (CLINIC PLUS)

SHOULD GIVE ATTENTION TO HIGH INCOME GROUP CONSUMER This is one place where Clinic-Plus is not being used extensively. So these consumers should be attacked. Higher income group consumers have purchasing power hence it can boost HULs sales much higher. ATTENTION TO NORTH & WEST MARKETS The brand performance is nearly half of that in South and East. Hence there is immense development potential is North and West. FOCUS ON GIRLS Boys seem to be using Clinic Plus more than the girls. Its very surprising. Its the girls who use Shampoo more

frequently than boys hence there is development potential.

ICE- CREAM VENDING Kwality Walls can expand its reach to the consumers by setting up counters at departmental stores (like Nilgiris), shopping malls etc. where the product is not available as of date. The objective behind making the product available in these places

would be to cash in on the impulse purchase. The ice cream counters should be installed at the entry/exit points and suitably loaded with the appropriate point of purchase material to induce purchase. This could also offer convenience to the consumer which at present soft drinks are doing. Advertising in Theatres This can help induce an impulse purchase since ice cream is usually associated with outings and movies. The theatre food stalls have ice cream counters and hence not only POP material but also on-screen commercials are necessary. Sampling is Low One of the reasons why the purchase of novel brands like Cornetto takes time to pick up, is the low rate of sampling. The recommendation to generate new product trial is to create media hype along with offering promotions to induce trail purchase of the new product. Since, this is a fairly new product, to induce trials Reach is more important than Frequency. The promotions should be designed in a way so as not to discount the premium image of the brand. Thus they could be in the form of discount coupons offered along with another premium brand of Kwality Walls family of icecream.

BIBLIOGRAPHY

BOOKS Kotler P., (2000), Marketing Management, Millennium Edition,

Prentice Hall of India, New Delhi. MAGAZINES A&M Business Barons Business Today Business World.

INTERNET WEBSITE www.google.com www.indiainfoline.com www.hul.com www.unilever.com www.altavista.com