Project Report 21

8/9/2019 Project Report 21

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PREFACE

Fast moving consumer goods which is commonly known as (FMCG) is as the name

suggests is the most demanding product in the market .It includes every item include food

item like biscuits, ice-cream , etc . to body products soap , face cream to beverages etc .

Consumer needs these products in their everyday life so they invest a high proportion of

their income in FMCG product. With the availability of many companies this sector is one

of the most successful and quality product markets. H.U.L, P&G, COLGATE-

PALMOLIVE , I.T.C , These are some big giants in market .

As companies are looking this sector as a most profitable sector beside this they have to

concentrate more on quality and new product development. For sustaining in market these

companies should have to concentrate on something unique by which they can get

maximum profit from these sectors .and as we know

CREATIVITY IS THE MOTHER OF INVENTION .

IN THIS PROJECT MY FOCUS IS ON MODERN TREND IMPACT IN GENERAL

TREND MARKET .

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EXECUTIVE SUMMARY

TITLE -

The main objective of this project is to find out the potential market of H.U.L and the role

play of modern trend market and its importance in today market .As we know in this

scenario there is lots of competition present in this tough world and it is getting tough for

company to maintain their presence in market with brand loyalty .

With the changing of perception of customer the market is getting change day by day in

this fast life format customers are looking forward for big retail outlet where they can get

everything in a organized way and they get everything easily at one place with the less

time availability . according to one survey wall mart (u.s.a) having a biggest successfull

format and customers like to visit in these places for shoping .

Retail penetration is also a big issue for company because with the presence of lots of

MNC in India the market is going out very tough .and for the company who really want to

sustain in market should look for more quality conscious and loyal towards customer big

companies like dabur , Itc ,p&g ,.But with the wide range of variety in H.U.L and quality

some of products getting good response from customer these products are like lux ,

sunsilk , surf excel . so in this report we are concentrating on these issue .

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OBJECTIVE

The main objective of this project is to find the effect which is shown on general trade due

to modern trade . and to know about retail penetration in Udaipur .

RATIONAL OF STUDY -:

In this project our main focus is on knowing about the market of H.U.L .

For this study i have done following things

1. This study contains lots of research and surveys which i had done in market by

knowing about all facts and figures of company .

2. This study also contain to knowing about potential market and retail penetration of

H.U.L .

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OBJECTIVE SUMMARY

Objective of every company is very clear to capture great potential market.

In this project we are concentrate on the coming opportunities in Udaipur .with the

changing attitude of customers market is now really seems very tough and with the

presence of lots of competitors in market with the similar product . if company really want

to capture the big market size and coming opportunities so it is really important for

company to focus on some creativity and used different format from others which help

company to get maximum benefit in future .

Our objective is very clear to create satisfaction for our customers and to make our journey

more beautiful and exciting and for this we have to concentrate on our customers. This

project is basically related with the journey of market leader. As we know H.U.L deals in

every segment child, adult, old, man, women. H.U.L is having a great network and great

infrastructure in not only in India but in foreign countries also. In this project we are

focusing on coming opportunities for companies and how we can convert these

opportunities in success.

To know about the market condition and sale of company in Udaipur

To know about the customer expectations

To understand the actual scenario of modern and general market

To know about the customer perception towards H.U.L .

To understand the technique used by distribution network .

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Company facts

Company Name : Hindustan Unilever Limited (HUL) Industry :

Consumer Products / FMCG

Type of Company :Public Limited Company, Private Limited Company, Local Based

CompanyLocation : Lever House 165/166 Backbay Reclamation Mumbai 400020

*The company prefers to receive online application for speedier processing

.WebSite : http://www.hll.com

COMPANY PROFILE

Hindustan unilever limited is one of the most largest FMCG company in not only in India

but they have some strong impact in some part of Asia .Touching the lives of two out of

three Indians with over two distinct categories in home product ,personal wash , food &

beverages etc .they endow company with a scale of combined volume of about 4 million

tonnes and sales of RS.10000 CRORE.

H.U.L ia also one of the countrys largest exporter : it has been recognized as a golden

super star trading house by Government of India .

H.U.L is the Indias largest fast moving consumer goods company by market capitalization

and revenue. HUL mission is to add vitality to life. Through is presence in over 20

distinct categories in home & personal care product and food & beverages. the company

meets everyday for nutrion hygiene personal care with brands that help people feel good.

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Look good &get more out of life. strong support from unilever (HUL parent currently

holding 52%) also help the company with new product launches suiting the needs of

consumers. HUL deep root in local cultures and market around the world give it a strong

relationship with consumer and the foundation for its future growth.

HLL's brands like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk,

Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality

Wall's are household names across the country and span a host of categories, such as soaps,

detergents, personal products, tea, coffee, branded staples, ice cream and culinary products.

These products are manufactured over 40 factories across India and the associated

operations involve over 2,000 suppliers and associates. Hindustan Lever Limited's

distribution network comprises about 4,000 redistribution stockists, covering 6.3 million

retail outlets reaching the entire urban population, and about 250 million rural consumers.

HLL is also one of India's largest exporters. It has been recognised as a Golden Super Star

Trading House by the Government of India. Presently, HLL has over 16,000 employees

including over 1,200 managers. Its mission is to "add vitality to life." The Anglo-Dutch

company Unilever owns a majority stake in Hindustan Lever Limited.

In the late 19th and early 20th century Unilever used to export its products to India. This

process began in 1888 with the export of Sunlight soap, which was followed by Lifebuoy

in 1895 and other famous brands like Pears, Lux and Vim soon after. In 1931, Unilever set

up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by

Lever Brothers India Limited (1933) and United Traders Limited (1935). The three

companies were merged in November 1956 and the new entity that came into existence

after merger was called as Hindustan Lever Limited. HLL offered 10% of its equity to the

Indian public, and it was the first among the foreign subsidiaries to do so. Currently,

Unilever holds 51.55% equity in the company while the rest of the shareholding is

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distributed among about 380,000 individual shareholders and financial institutions.

Brooke Bond entered Indian market in 1900 and in 1903 it launched Red Label tea in the

country. In 1912, Brooke Bond & Co. India Limited was formed. Unilever acquired

Brooke Bond through an international acquisition. Similarly, Lipton's link with India date

back to 1898. Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited

was incorporated. Pond's (India) had been in Indian market since 1947. It joined the

Unilever ranks through an international acquisition of Chesebrough Pond's USA in 1986.

The liberalization of Indian economy in 1991 and subsequent removal of the regulatory

framework allowed HLL to explore every single product and opportunity segment, without

any constraints on production capacity. The 1990s witnessed a string of crucial mergers,

acquisitions and alliances. In 1992, the erstwhile Brooke Bond acquired Kothari General

Foods, with significant interests in Instant Coffee. In 1993, it acquired the Kissan business

from the UB Group and the Dollops Ice-cream business from Cadbury India. In one of the

most talked about events of India's corporate history, the erstwhile Tata Oil Mills

Company (TOMCO) merged with HLL, effective from April 1, 1993. In July 1993,

Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited

(BBLIL). Brooke Bond Lipton India Limited launched Wall's range of Frozen Desserts in

1994 and by the end of the year, HLL entered into a strategic alliance with the Kwality

Icecream Group families. BBLIL merged with HLL, with effect from January 1, 1996.

HLL has also set up a subsidiary in Nepal, Nepal Lever Limited (NLL). The NLL factory

manufactures HLL's products like Soaps, Detergents and Personal Products both for the

domestic market and exports to India. In January 2000, as part of its divestment strategy,

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the government decided to award 74 per cent equity in Modern Foods to HLL. In 2002,

HLL acquired the government's remaining stake in Modern Foods. In February 2007, the

company has been renamed to "Hindustan Unilever Limited" to strike the optimum balance

between maintaining the heritage of the Company and the future benefits and synergies of

global alignment with the corporate name of "Unilever".

Other Information

Hindustan Unilever Limited considers quality as one of the principal strategic objectives to

guarantee its growth and leadership in the markets in which it operates. The company is

committed to respond creatively and competitively to the changing needs and aspirations

of our consumers through relentless pursuit of technological excellence, innovation and

quality management across our businesses, and offer superior quality products and services

that are appropriate to the various price points in the market as well as to our commitment

to building shareholder value. The company recognises that its employees are the primary

source of success in its operations and is committed to training and providing them the

necessary tools and techniques as well as empowering them to ensure broad base

compliance of this policy in the organisation at all levels. The company is committed to

fulfill its legal and statutory obligations and international standards of product safety and

hygiene and will not knowingly sell product that is harmful to consumers or their

belongings. It will institute systems and measures to monitor compliance in order to meet

its responsibilities to consumers. The company will maintain an open communication

channel with its consumers and customers and will carefully monitor the feedback to

continuously improve its products and services and set quality standards to fulfill them.

The company is committed to extend its quality standards to its contract manufacturers,

key suppliers and service providers and by entering into alliances with them, to jointly

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improve the quality of its products and services. This policy is applicable to production

from its own facilities as well as to production that is outsourced. The company will

periodically review this quality policy for its effectiveness and consistency with business

objectives. The company delegates authority and responsibility for dissemination and

implementation of this policy to each Business and Unit Head.

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Timeline ( history of company )

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19th

cen

tur

y

Although Unilever wasn't formed until 1930, the companies that joined forces

to create the business we know today were already well established before the

start of the 20th century.

1900sUnilever's founding companies produced products made of oils and fats,

principally soap and margarine. At the beginning of the 20th century their

expansion nearly outstrips the supply of raw materials.

1910s Tough economic conditions and the First World War make trading difficult

for everyone, so many businesses form trade associations to protect their

shared interests.

1920sWith businesses expanding fast, companies set up negotiations intending to

stop others producing the same types of products. But instead they agree to

merge - and so Unilever is created.

1930sUnilever's first decade is no easy ride: it starts with the Great Depression and

ends with the Second World War. But while the business rationalises

operations, it also continues to diversify.

1940sUnilever's operations around the world begin to fragment, but the business

continues to expand further into the foods market and increase investment in

research and development.

1950sBusiness booms as new technology and the European Economic Community

lead to rising standards of living in the West, while new markets open up in

emerging economies around the globe.

1960sAs the world economy expands, so does Unilever and it sets about developing

new products, entering new markets and running a highly ambitious

acquisition programme.

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1970sHard economic conditions and high inflation make the 70s a tough time for

everyone, but things are particularly difficult in the fast-moving consumer

goods (FMCG) sector as the big retailers start to flex their muscles.

1980sUnilever is now one of the world's biggest companies, but takes the decision

to focus its portfolio, and rationalise its businesses to focus on core products

and brands.

1990sThe business expands into Central and Eastern Europe and further sharpens its

focus on fewer product categories, leading to the sale or withdrawal of two-

thirds of its brands.

The 21st

cen

tur

y

The decade starts with the launch of Path to Growth, a five-year strategic plan,

and in 2004 further sharpens its focus on the needs of 21st century consumers

with its Vitality mission.

Soaps and Detergents

This segment grew by 13.9% and 20.3% in CY07 and H1CY08 respectively constituting

44.3% of the total PBIT of the company. Fabric

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Wash has shown strong growth in this year with the market share moving up from 34.6%

in Q4CY06 to 38.3% in Q2CY08. Strong brand building exercise and intensive campaigns

(Daag aache hain for Surf and Smart Shrimati for Wheel) has helped it to regainits old

position. In the soaps segment, HUL continues to enjoy market share of 52.7%, which is

primarily due to its presence across all price points.(Dove Premium, Lux Mid market,

Breeze and Lifebuoy lower market).

Personal Products

This segment grew by 9.3% in CY07 (first three quarters were laggards but the fourth

quarter reported a strong growth on account of lower base effect and contribution from

new products) and constitutes 46% of the total PBIT of the company. This segment grew

by20.9% in H1CY08 and the new launches in the Ponds and Dove range contributed

strongly to the profitability of the segment.

The hair wash category is dominated by players like P&G, HUL and Cavinkare. P&G has

three main brands - Pantene, Head &Shoulders and Rejoice. CavinKare dominates the rural

pockets with Chik and Nyle. HUL is present at several price points. Clinic is amass-market

brand, Sunsilk is in the mid-price segment and Dove falls in the premium bracket. The

newly launched Dove range continues to garner market share and the market share of HUL

in the shampoo market has stood at 46.5% in JQ08. However, thecompetition has further

intensified with the entry of ITC with its brand Fiama di Wills. In the Skincare category,

HUL is present through its strong brands like Fair & Lovely, Lakme and Ponds. With a

market share of 54.4%, it continues to grow at a fast pace. Ponds Age Miracle (Premium

range) is slowly gaining acceptance and the offtake has improved.

HUL has a market share of 30% (JQ08) in the oral care market and is one of the

categories where it is lagging the market leader(Colgate). This category is expected to

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show modest growth with its strong brands (Close UP & Pepsodent). A new variant

Pepsodent

Kids was launched in the fourth quarter of CY07

Processed Foods

This is the emerging category in HULs portfolio and is the current focus area for the

company. The brands stable includes Annapurna(for atta and salt), Kissan (for jams,

squashes and ketchups), Knorr (for soups and cooking aids) and Modern (a bakery brand).

HUL isclearly keeping a low profile in the staples category, which is low margin business.

The company has a market share of 67.5% in Jamsand 30.3% share in Ketchups category.

Kissan Amaze has been test marketed in 3 southern states

Beverages

HUL has a market share of 23.2% in the tea category and 46.9% in the coffee category.

With the aggressive re launch of Brooke Bond,Taj Mahal and Taaza, the company has

been able to arrest the decline in its market share. A new concept tea Taj Mahal

DessertTeas has been added to the premium segment of tea portfoilio

HUL is the only player in India, which is fully geared up to address the entry-level as well

as mid and top end of the market. For Eg.Clinic is a mass-market brand, Sunsilk is in the

mid-price segment and Dove falls in the premium bracket. In the hair care segment,

toincrease its penetration in the entry level, it has introduced low priced SKU (Sachets) to

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drive volumes whereas to exploit the urban andaffluent class it has launched the Dove

range. We believe that HULs presence across categories has given it an edge, as it has

beenable to address all the stratas of consumers compared to its competitors who are

mostly in niche segments.

With the wide range of variety in market it has become now one of the most powerfull

brand in India . some product of H.U.L is very high profitable products . H.U.L is divided

in two division U1 and U2 .U2 is commonly known as LAKME . which is one of the most

powerfull cosmetic brand in Indian market . with the presence of wide range of variety in

lakme now its become the most renowned brand for womens.

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LAKME

U2 division of H.U.L and one of the most successful brand in India is now became quite

popular brand in cosmetic . lakme deals in every part like body lotion ,face wash ,nail paint

, kajal sticks , lipstick ,and many more, And the Ellite brand of this division is Elle 18 .

Lakme is most popular brand among middleclass and high class womens because of its

quality and variety it is very successful brand

As far as variety is considerd there is no doubt regarding product.but with the availability

of many competitors in market basically in general or kirana shop it is tough for lakme to

get maximum profitability in general market .

Culture and Values

Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene

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

life. Our deep roots in local cultures and markets around the world give us our strong

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relationship with consumers and are the foundation for our future growth. We will bring

our wealth of knowledge and international expertise to the service of local consumers - a

truly multi-local multinational. Our long-term success requires a total commitment to

exceptional standards of performance and productivity, to working together effectively,

and to a willingness to embrace new ideas and learn continuously. To succeed also

requires, we believe, the highest standards of corporate behaviour towards everyone we

work with, the communities we touch, and the environment on which we have an impact.

This is our road to sustainable, profitable growth, creating long-term value for our

shareholders, our people, and our business partners

RETAIL PENETRATION IN UDAIPUR

Retail penetration in Udaipur is possible and it will also help to generate profitability in

this market and the reason behind this is the brand presence and quality . As we know

H.U.L is also known for its strong distribution network and in Udaipur some product in

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H.U.L is having a great mindset in middleclass segment like laundry, personal wash, soaps

and beverages these product are commonly known for its loyal brand among customer .

H.U.L having a high investment in advertising and which makes brands more common and

renowned brand among people .If we talk about Udaipur market there is tough competition

between some brand like p&g , and ITC and some small companies like ayur , joy but as

we have wide range of variety and strong distribution network it is quite easy for company

to capture big market share in Udaipur. During survey in market we find that most of the

shops thinks that some of the company having good sales in Udaipur these companies

include Dabur, Joy, Itc , . if we talk about the home and personal care some brands are

more popular in Udaipur .e.g. sunsilk ,lux ,dove, surf excel , and brook bond is most

commonly used product with good sales and margins and shopkeepers are really happy

with the profit margins and scheme which is provided by company though some problems

comes in light regarding payment condition but beside this they feel proud with H.U.L .

Category All India Urban Rural

2.1 5.5 0.6

Toothpaste 48.6 74.9 37.6

Skin Cream 22 31.5 17.8

Shampoo 38 52.1 31.9

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Utensil Cleaner 28 59.9 14.6

Instant Coffee 6.6 15.5 2.8

Washing Powder 86.1 90.7 84.1

Detergent Bar 88.6 91.4 87.4

Toilet Soap 91.5 97.4 88.9

We believe with the rising consumerism, roll-out of the retail formats and increasing

penetration in the rural market, the growth momentum of HUL is expected to remain

strong in the coming quarters. There are certain categories like shampoo, skin cream and

detergents where it could increase its penetration in the rural areas with its vast distribution

reach.

Moreover, we believe that evolving modern trade channels could benefit HUL not just in

increasing its market share but also improving the product mix. HUL expects modern trade

to account for about 10% of the market by 2010 and 15% by 2015 from the current levels

of 5%.. The most interesting fact about modern trade is that the premium range witnesses

higher offtake leading to better margins and

organized retail has emerged as a competitive advantage for HUL.

HUL is investing in building capacities and improving processes for Modern Trade and has

entered into a JV with Smollons Holdings ofSouth Africa to increase its capabilities to

meet the merchandising demands in Modern Trade. The new company has been named as

Hindustan Unilever Field Services Private Limited (HUFS) and will work exclusively on

behalf of HUL in Modern Trade channel only.

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The operations will begin with the existing Modern Trade in-store execution team of HUL

moving into HUFS. Smollan Holdings is one of the leading in-store execution and field

services companies internationally. It has leading edge capabilities in servicing Modern

Trade focused on shelf filling, logistics for merchandising materials and in store execution

Customer perception

FAIR AND LOVELY

One of the major brand of H.U.L in skin segment . with the presence of wide range in fair

and lovely it has become the famous brand among middle class . but due to the presence

of some competitors the sale of fair and lovely comes down . many shopkeepers feels that

the sale is not such good as before with the strong distribution network of competitors the

availability of skin cream increased day by day . fair and lovely have a very great impact

among middleclass women but the product which was recently introduced by fair and

lovely for men is not so much popular . and the reason behind this is the perception of

middle class people towards fair and lovely .that this product belong to women as compare

to men . As per the fact which we get by survey is the sale of this product is seasonal now

it become more popular in summer as compare to winter . and the strong competitor of this

product is fair one by shehnaz Husain , fair and handsome by Emami and Boro plus . these

are some product which already prove their presence in market .

LUX -

Lux is one of the most success full beauty bar for H.U.L. Lux having a great impact in not

only urban but in rural market lux which is commonly known as film star soap . but we

have to consider this fact that the sale of this product also faces a lots of problem due to

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competitors product like Dyna , Gorej no 1 , Cinthol etc , in this scenario the perception

of customer is changed day by day with the presence of global market in India there is

easy availability of lots of foreign soaps easily which effect lux and many important brand

of H.U.L . for increase of sales we have to focus on customer relationship which is really

very important for any product we have to reach our customers and understand our

customers demands by some research . lux is one of the highest profitable brand in soaps

category . lux having a lots of variety like milk , chocolates, fruits etc . for this brand we

can say now we have to change our approach and focus on local market by giving lots of

offers and varieties . lux having a good sale on some stores but having also low sales in

some stores so we have to focus on that store also where the sale of product falls down .

Surf excel -

Surf excel having good sale in almost everywhere or we can say surf excel is one of the

key product for H.U.L . Ariel which is the brand of P&G also having a good share in

market are giving strong competition to surf excel . but beside this by interaction with

customer the major problem which comes in mind is the price . 80 rs per kg and whereas

some product is much cheeper than surf excel like Nirma , double dog (more) etc these

products are also capable of producing good quality in Indian market and today the

customer is more price conscious . so we have to focus on price also which is really very

important for this product .with the present of sachet sceme there is comptetion between

surf excel and ariel whose having a same rate . but if we talk about tide it cost rupees 1 . as

we talk about Indian market we have to focus more on price . because price and quality are

two more important aspect for good sale and surf excel is a good brand with best quality

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but due to high cost the sale is not so up to the mark . because this product is still far away

from middle class so by focusing on price we can create opportunity to get the huge market

in middle class segment .

Sunsilk

Sunsilk faces a lot of compteion in Indian market with the presence of lots of companies

in market the major products of H.u.l. is sunsilk shampoo whic h have good sales in

urban & rular market . The major competitors of this product is vatika

shampoo(dabur),vivel(Itc),head and shoulder(p&g) This product is easy available in any

shop. Compay should focus on expectation of customers demand and launched the new

product time to time. Sunsilk is one of the successfull product in market having good

impact in womens .mostly women who belongs from middle class consume this product

sunsilk is easily available in sachet . which also have good sale most of the shopkeepers

feels that sunsilk is a type of product which is brand loyal product for most womens .

COMPTETION -:

NO TASK IS SO EASY WHAT WE FEEL ITS VERY IMPORTANT FOR EVERY

COMPANY TO PUT 200% WITH THE PRESENCE OF MANY COMPTETIORS IN

MARKET IT IS VERY DIFFICULT FOR COMPANY TO SUSTAIN IN MARKET

THESE ARE SOME COMPANYS WHO PLAY A BIG ROLE IN MARKET .

DABUR

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Dabur is commonly deal with food product but also play a role in shampoo and oral care .

dabour is vatika ,meswak are the two most successfull product of dabur . which have good

increase in sales and having popular brand among customers . sales of dabour increases

approx 20 % in Udaipur according to some shopkeeper and the reason behind this is dabur

is also known as market leader in health care product so it most renowned product in

market and customers are more loyal towards this product both in shampoo and oral care

are basically comes in herbal .

P&G

P&G commonly known as procter and gamble one of the big giant in not only in india but

in world having good brand name . P&G have wide range of product as it is recognize as

MNC .P&G having a great impact in urban market product like Ariel , head & shoulder,

tide . according to some shopkeepers p&g having average sale in Udaipur . the strong point

of p&g is its payment condition and distribution network .

ITC

ITC is well known brand with having great varieties and network in india . ITC with

over 21,000 employees and US $ 4.75 billion and ranked amongst 3 in india

Rural Initiatives

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ITC's Agri-Business is India's second largest exporter of agricultural products. ITC is one

of the India's biggest foreign exchange earners (US $ 2 billion in the last decade). The

Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its

competitiveness by empowering Indian farmers through the power of the Internet. This

transformational strategy, which has already become the subject matter of a case study at

Harvard Business School, is expected to progressively create for ITC a huge rural

distribution infrastructure, significantly enhancing the Company's marketing reach.Some

of brands in ITC having a great market now recently like fiama di wills ,vivel, In both soap

, and hair care segment .but if we talk on the basis of Udaipur sale is not so effective and

aggressive which will effect on H.U.L .

MODERN TRADE IMPACT ON GENERAL TRADE

Modern trend is one of the fastest growing trend in big cities because this trend is much

convenient for customer to visit at one place and purchase product with the presence of

wide range of variety . the main reason behind the success of this trend in big cites is

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availability of all product in one place big bazaar , vishal mega mart ,v-mart is the example

of this trend now these groups are looking forward to cover B grade cities and now in

future it seems like in Udaipur there is huge chances of coming up of big malls and

Moreover, we believe that evolving modern trade channels could benefit HUL not just in

increasing its market share but also improvingthe product mix. HUL expects modern trade

to account for about 10% of the market by 2010 and 15% by 2015 from the current levels

of 5%.. The most interesting fact about modern trade is that the premium range witnesses

higher offtake leading to better margins and

organized retail has emerged as a competitive advantage for HUL.

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HUL is investing in building capacities and improving processes for Modern Trade and has

entered into a JV with Smollons Holdings of South Africa to increase its capabilities to

meet the merchandising demands in Modern Trade. The new company has been named as

Hindustan Unilever Field Services Private Limited (HUFS) and will work exclusively on

behalf of HUL in Modern Trade channel only.

The operations will begin with the existing Modern Trade in-store execution team of HUL

moving into HUFS. Smollan Holdings is one of

The leading in-store execution and field services companies internationally. It has leading

edge capabilities in servicing Modern Trade

focused on shelf filling, logistics for merchandising materials and in store execution.

In Udaipur modern trend play a huge impact over general trading because as we know

.udaipur is well known city for tourism. If we talk about the income standard of people

here we can say this city have more middleclass segment which means people are capable

to purchase product easily . malls and modern trend is the place where people can easily

spend some time for entertainment like what happen in metro citys.and the sale of product

also comes high as compare to small store because with the presence of wide range of

variety in market . customers have more variety , more choices . like the source which we

get from vishal mega mart in Udaipur they have highest sale approx( 3,00,000) rs for a

month for particular H.U.L .

The only worry for company in modern trend is competition like presence of Dabour, ITC,

P&G, and Ayur. And some of these companies are working in a very low cost like ayur,

joy.In big market it is not possible for every company to make their huge impact in

customer mind because customer are more brand conscious and more quality concerned .

India is currently the 12th largest consumer market in the world .Indias consumption will

quadruple over the next 20 years.

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Penetration level as well as per capita consumption in most product categories like jams

,toothpaste ,skin care ,hair wash etc in india is low indicating the untapped market

potential burgeoning Indian population ,particularly the middle class and rural segment

presented an opportunity to makers of branded products to convert consumer of unbranded

products to branded products . Building brand loyalty is also one of the key factor for

FMCG.

Segment market size (rs) penetration(%)

Oral care 31 49

Skin care 26 22

Hair care 14 38

Deodorant 2.5 8

Soap 55 58

Detergents 60 37

Tea 35 82

Coffee 4 7

SOURCE :INDUSTRY KRC

The complete shopping experiences of people is undergoing a sea change at the organized

retail chain its contributing around 5% (approx) and wheareas in traditional its about 95 %

(approx) .because of high cost indulge in organized modern trend the margin is less in

initial but in metro its more popular and now these concepts are commonly used by small

cities because the future of modern trend is much better than general trend

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RESEARCH METHDOLOGY -:

Due to the presence of large number of FMCG companies in market ,to find the defining

strategies used ,The methodology used is interview and survey method .

DATA COLECTION METHOD -:

For this research primary and seconadary both data was collected .

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Primary data was collected by questionnaire and on one and one interview was considerd

with customer , shopkeepers ,distributors and suppliers of company .

Secondary data was collected with the help of internet , books and magazines .

METHDOLOGY FOR RESEARCH -:

INFORMAL INVESTIGATION -:

Visit to the shop owners ,talked to the distributors of the company and to the customer

who visit to both general and modern market.

EXTERNAL INVESTIGATION -:

Understanding customer problem

Understanding market structure

SITUATIONAL ANALYSIS -:

Taste and preferences

Needs and income

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Major competitors

ITC

DABUR

PROCTAR AND GAMBLE

SAMPLING TECNIQUE -:

For my sampling . I used cluster sampling technique . I selected 50

people around the area and interviewed them according to the questionnaire and try to

know about their taste and preferences and their purchasing habbit and whether they are

satisfied with the brand or not are they brand loyal or not .I also visit to many shops and

retails malls to know about their expectations and what technique they are using to sustain

their customer in this tough competition scenario

RESEARCH PROBLEM

The major problem is change in taste and preferences of customer

Changing to market trend

Presence of large number of competitors in market

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SCOPE OF RESEARCH

This project has been limited to Udaipur and some parts of Rajasthan only

The questionnaire was designed by keeping all market in mind all the objective was clear

and focused on the benefit for the company. Information always play a very important role

for any company effective information is like a medicine for company .

LIMITATIONS OF PROJECT -:

1. This project cannot be done on national level . so the figure used in this project is

basically limited with Udaipur only .

2. The figure which i get from market is not going to be same always during season time

due to increase in demand the figure get affected easily and some product which is

mainly seasonal get good sales .

Limitation by time

1. Due to availability of short time period it was not possible for me to cover all big

market .

2. Due to less time . i was not able to cover all rural market but i try my best to get

good research work .

3. Due to busy schedule of my seniors and less availability of time they were not able to

solve my every problem .

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QUESTIONNAIRE

Q.1 According to you which brand is more popular and reliable for you ?

a) H.U.L b) I.T.C c) P&G d) dabour

Q.2 Are you happy with the quality of products provided by H.U.L ?

a) yes b) no c) cant say

Q.3According to you which market is more convenient to you for shopping ?

a) modern market b) general market c) both

Q.4 According to you among these who is the most powerfull competitor for H.U.L ?

a) DABOUR b) P&G c) COLGATE d) I.T.C

Q.5 What is the main source of your information regarding product ?

a) Advertisement b)magazines c)friends

Q.6 Are you easily get the H.U.L product in market ?

a) yes b) no c) not always

Q.7 According to you where you get right kind of information regarding product in

market ?

a) shoping malls b) general stores c) none of them

Q.8 What is your perception towards H.U.L ?

a) positive b) negative c) mixed

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Q.9 Are you easily get all details and schemes by your shopkeeper and malls ?


Q.10 Are you really a loyal customer for H.U.L ?


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DATA ANALYSIS

1. H.U.L is one of the market leader in india clears that they are going to capture huge

potential market in not only urban but in rural market also . in the present scenario i

get a very mixed response from consumers but its clearly understandable that

H.U.L is making a huge impact on customers besides lots of competition in market

like big companies I.T.C , P&G AND DABUR still consumer feels that H.U.L is

best .

2. Quality is the main base for any company because without quality no one can

survive in market and in this question i get all the answers of my questions .due to

the huge variety of products and providing of better quality of products customers

feels that H.U.L is making a good range and quality with compare to other

companies .

3. Now the world has changed and everything is seems fast and buzy . due to less

availability of time everyone think that they utilize their time in a best manner with

the coming of modern trade market in india the market status is really changed and

changed with a drastic variations of figures .Wheares high class people spend more

time in malls and poor people still like general market . most of the people like to

go for shopping in malls because their they get all categories of items at one place

and malls people dont like to purchase in a small quantity .

4. As we know india has the biggest market with compare to some parts of other

asian countries so due to heavy population its seems easy for many companies to

come and set their market among Indians but in reality its really different now the

time has change people are more conscious about the product and its quality and

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brand image . with the availability of many products the competition is also big .for

this answer i visit to one reliance fresh shop in Udaipur and i asked to the manager

regarding competition i get very surprising answers . He told me that in some

products their is no comptetion of H.U.L with other companies customer purchase

products with only the name of brand because they know the market status of

H.U.L .

5. Advertisement of product is really very important for sustaining brand image in

market .In todays scenario company pay a huge amount for endorsement of

product they spend so much on advertisement they higher professionals and brand

ambassador .most of the people get information through televisions and magazines

but according to the survey the result which i get most of times people get

information through television .this shows that still t.v is best source for

information .

6. The role of distribution network is really very important to provide product at

right time at right place .H.U.L having such a strong distribution network not even

in urban but in rural market also .it is really very important for company to provide

better service and choose better distribution network . Most of the people feels that

they easily get product of H.U.L in market .

7. Most of the people think that H.U.L is much costly than other brand .H.U.L having

three segment U1,U2,U3 .and if we talk about U2 segment which is lakme its really

costly for middle class and some product in U1 is also very costly like surf excel .

as we know H.U.L have highest share in cosmetic market and lakme is much costly

brand for middle class wheareas surf excel also very costly then other competitors .

During selling most of the people have complaint me regarding cost which is

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really seems very big problem for company .

8. Customers are really happy with H.U.L. they have good perception toward product

and quality . most of people think that they have good perception in mind for H.U.L

and the reason for this image is variety and availability of product in market .

9. Company introduce lots of schemes for customers and some time these schemes are

limited to only shopkeepers . Customers are not able to enjoy these schemes and i

also get mixed response from customers regarding products schemes mainly people

get schemes in modern trade market only but not in general market .

10. Loyal customer is like a asset for company .and at the end i can proudly say that

why H.U.L is market leader just because H.U.L is able to win the heart of their

customer and most of the peoples are loyal towards their brand and they like product

of H.U.L .

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Conclusion

On the basis of above facts and figures which i get in my research through primary data

and secondary data i strongly feel that H.U.L is now become the heart product of

Udaipur .the market size and share is so high and there is huge chances of getting

maximum profit from Udaipur with the help of effective team work .some of product are

most successfull and now became the need of Udaipur city . only on which we have to

focus more is on our network , stocks , and delivery time .HUL which have the set and

defined add vitality to life and by focusing on this mission we can make every task more

successful for company . there is huge chances of generating profitability in Udaipur by

the help of modern trend because in this trend there is fast consumption and high demand

and retail penetration in Udaipur because our product are more quality product then our

competitors .as we know H.U.L is now known for a brand loyalty .In the coming days

company who have strong r&d and distribution network its seems easy to win the heart of

customer in Udaipur .and at the end i love to say that its really a honour for me to work

with H.U.L the name speaks itself why H.U.L is market leader in fmcg sector .

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BIBLIOGRAPHY

BOOKS

BUSINESS WORLD

OUTLOOK

WEBSITES

www.hll.com

www.marketwatch.com

www.fmcg.com

RETAIL OUTLETS

VISHAL MEGA MART (UDAIPUR)

V-MART (UDAIPUR)

ARORAS STORES ( UDAIPUR)

BOMBAY FANCY (UDAIPUR)

TIP TOP (UDAIPUR)
http://www.hll.com/http://www.marketwatch.com/http://www.fmcg.com/http://www.hll.com/http://www.marketwatch.com/http://www.fmcg.com/

Documents

Project Report 21