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A
PROJECT REPORT
On
PRODUCT STATERGIES OF FMCG (HINDUSTAN UNILIVER LIMITED.)
Submitted To
KURUKSHETRA UNIVERSITYKURUKSHETRA
In the partial fulfillment of the Bachelor of degree of Commerce in Advertising, Sales promotion and sales management.
(Session 2010-2011)
Under Guidance of:
Miss Shivani Puri
Lecturer in Commerce
D.A.V College for Girls
Under Supervision of: Submitted By:
Mrs. Vivek Narula Juhi
Lecturer in Commerce. Class: B.Com. IID.A.V College for Girls Roll No: 20092016
University Roll No.
D.A.V COLLEGE FOR GIRLSYAMUNA NAGAR
DECLARATION
I, JUHI here by declare that project report “PRODUCT STATERGIES OF FMCG (HUL)”.
Assigned to me for the requirement of the degree of B.COM with advertising marketing and
sales promotion from Kurekshetra University, is the original work and done by my personally
and the information provided in the study is the authenticated to the best of my knowledge.
The study has not been submitted to any other institution of University for the award of any
degree. If this statement is wrong I shall be personally liable the consequences.
JUHI
B.COM IInd
ROLLNO.20092016
ACKNOWLEDGEMENT
First and foremost I would like to convey my sincere thanks to all mighty God, and then MISS
SHIVANI PURI (lecturer in commerce) of D.A.V GIRLS COLLEGE YAMUNANAGAR. She
has been source of perpetual inspiration to me. She gently guided and inspired me towards a
bright career through my course. I was very fortunate to have herself as my project guide. She is
willing to give all kind of support and encourage me with her valuable suggestions.
I also owe my special thanks to the Principal “MS. SUSHMA ARYA” for providing the project
title “PRODUCT STATERGIES OF FMCG (HUL)”. The special course with the required
equipment in our college. I am also thankful to MRS. VIVEK NARULA (lecturer) in commerce
for helping in making this project report.
Juhi
B.COM IInd
PREFACE
The main objective of the project is familiarization with the necessary theoretical inputs and to
gain sufficient practical exposure to establish a distant linkage between the conceptual
knowledge acquired at the institute and practices those concepts.
The project is concerned with the “PRODUCT STATERGIES OF FMCG(HUL).” .During
my tenure of research, I studied the various development tools and deeply analyzed the
functions.
Prior to making reference to working of the project prepared, the analysis and feasibility and all
the other aspect were taken into consideration.
CONTENTS
Introduction
Introduction to Organization
Industry profile
Approach to study
Objective to study
Research Methodology
Database report Gathered
Data Interpretation and Analysis
SWOT Analysis
Findings and Bibliography
Findings
Limitations
Suggestions
Bibliography
Questionnaire
INTRODUCTION
INTRODUCTION TO ORGANISATION
Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG
products that have a quick turnover, and relatively low cost. Consumers generally put less thought into
the purchase of FMCG than they do for other products. Though the absolute profit made on FMCG
products is relatively small, they generally sell in large numbers and so the cumulative profit on such
products can be large.
FMCG industry is innovative, full of rich experience, reaches world wide, people working with
FMCG may get frequent opportunity to travel meet new culture, gets experience very quickly
and chances to rise in status is much easier
Unlike other sectors FMCG shares float in a steady manner irrespective of market dip world
wide. So basically, fast moving consumer goods are pretty awesome.
This The Fast Moving Consumer Goods (FMCG) industry in India is one of the largest sectors in
the country and over the years has been growing at a very steady pace. The sector consists of
consumer non-durable products which broadly consists, personal care, household care and food
& beverages. The Indian FMCG industry is largely classified as organized and unorganized. This
sector is also buoyed by intense competition. Besides competition, this industry is also marked
By a robust distribution network coupled with increasing influx of MNCs across the entire value
chain sector continues to remain highly fragmented.
The Fast Moving Consumer Goods (FMCG) industry primarily deals with the production,
distribution and marketing of consumer packaged goods, i.e. those categories of products that are
consumed at regular intervals. Examples include food & beverage, personal care,
pharmaceuticals, plastic goods, paper & stationery and household products etc. The industry is
vast and offers a wide range of job opportunities in functions such as sales, supply chain,
finance, marketing, operations, purchasing, human resources, product development and general
Management. Global leaders in the FMCG segment are Sara Lee, Nestlé, Reckitt Benckiser,
Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi and Mars etc.
The FMCG industry is volume driven and is characterized by low margins. The products are
branded and backed by marketing, heavy advertising, slick packaging and strong distribution
networks. The FMCG segment can be classified under the premium segment and popular
segment. The premium segment caters mostly to the higher/upper middle class which is not as
price sensitive apart from being brand conscious. The price sensitive popular or mass segment
consists of consumers belonging mainly to the semi-urban or rural areas who are not particularly
brand conscious. Products sold in the popular segment have considerably lower prices than their
premium counterparts. Following are the segment-wise product details along with the major
players:
INDUSTRY PROFILE
Fast Moving Consumer Goods ( FMCG )
FMCG are products that have a quick shelf turnover, at relatively low cost and don't require a lot
of thought, time and financial investment to purchase. The margin of profit on every individual
FMCG product is less. However the huge number of goods sold is what makes the difference.
Hence profit in FMCG goods always translates to number of goods sold. Fast Moving Consumer
Goods is a classification that refers to a wide range of frequently purchased consumer products
including: toiletries, soaps, cosmetics, teeth cleaning products, shaving products, detergents,
other non-durables such as glassware, bulbs, batteries, paper products and plastic goods, such as
Buckets. ‘Fast moving’ is in opposition to consumer durables such as kitchen appliances
That is generally replaced less than once a year. The category may include pharmaceuticals,
consumer electronics and packaged food products and drinks, although these are often
categorized separately.
The term Consumer Packaged Goods (CPG) is used interchangeably with Fast Moving
Consumer Goods (FMCG).
Three of the largest and best known examples of Fast Moving Consumer Goods companies are
Nestlé, Unilever and Procter & Gamble. Examples of FMCGs are soft drinks, tissue paper, and
chocolate bars. Examples of FMCG brands are Coca-Cola, Kleenex, Pepsi and Believe. The
FMCG sector represents consumer goods required for daily or frequent use.
The main segments of this sector are personal care (oral care, hair care, soaps, cosmetics, and
toiletries), household care (fabric wash and household cleaners), branded and packaged food,
beverages (health beverages, soft drinks, staples, cereals, dairy products, chocolates, bakery
products) and tobacco. The Indian FMCG sector is an important contributor to the country's
GDP. It is the fourth largest sector in the economy and is responsible for 5% of the total factory
Employment in India. The industry also creates employment for 3 m people in downstream
activities, much of which is disbursed in small towns and rural India. This industry has witnessed
strong growth in the past decade. This has been due to liberalization, urbanization, increase in the
disposable incomes and altered lifestyle. Furthermore, the boom has also been fuelled by the
reduction in excise duties, de-reservation from the small-scale sector and the concerted efforts of
personal care companies to attract the burgeoning affluent segment in the middle-class through
product and packaging innovations .Unlike the perception that the FMCG sector is a producer of
luxury items targeted at the elite, in reality, the sector meets the every day needs of the masses.
The lower-middle income group accounts for over 60% of the sector's sales. Rural markets
account for 56% of the total domestic FMCG demand. Many of the global FMCG majors have
been present in the country for many decades. But in the last ten years, many of the smaller rung
Indian FMCG companies have gained in scale. As a result, the unorganized and regional players
have witnessed erosion in market share.
HISTORY OF FMCG
In India, companies like ITC, HUL, Colgate, Cadbury and Nestle have been a dominant force in
the FMCG sector well supported by relatively less competition and high entry barriers (import
duty was high). These companies were, therefore, able to charge a premium for their products. In
this context, the margins were also on the higher side. With the gradual opening up of the
Economy over the last decade, FMCG companies have been forced to fight for a market share. In
the process, margins have been compromised, more so in the last six years (FMCG sector
witnessed decline in demand).
CURRENT SCENARIO
The growth potential for FMCG companies looks promising over the long term horizon, as the
per-capita consumption of almost all products in the country is amongst the lowest in the world.
As per the Consumer Survey by KSA Techno pak, of the total consumption expenditure, almost
40% and 8% was accounted by groceries and personal care products respectively. Rapid
urbanization, increased literacy and rising per capita income are the key growth drivers for the
sector. Around 45% of the population in India is below 20 years of age and the proportion of the
young population is expected to increase in the next five years. Aspiration levels in this age
group have been fuelled by greater media exposure, unleashing a latent demand with more
money and a new mindset. In this backdrop, industry estimates suggest that the industry could
Triple in value by 2015 (by some estimates, the industry could double in size by 2010).
In our view, testing times for the FMCG sector are over and driving rural penetration will be the
key going forward. Due to infrastructure constraints (this influences the cost-effectiveness of the
supply chain), companies were unable to grow faster. Although companies like HUL and ITC
have dedicated initiatives targeted at the rural market, these are still at a relatively nascent stage.
The bottlenecks of the conventional distribution system are likely to be removed once organized
retailing gains in scale. Currently, organized retailing accounts for just 3% of total retail sales
and is likely to touch 10% over the next 3-5 years. In our view, organized retailing results in
discounted prices, forced-buying by offering many choices and also opens up new avenues for
growth for the FMCG sector. Given the aggressive expansion plans of players like Pantaloon,
Trent, Shopper’s Stop and Shoprite, we are confident that the FMCG sector has a bright future.
MAJOR PLAYERS IN FMCG SECTOR
Britannia India ltd
Dabur India ltd.
Marico
Nirma ltd.
Cadbury India ltd
Cargill
Coca-cola
Colgate-Palmolive India
Hj Heinz co.
HUL
Nestle
Pepsi co.
Procter & Gamble
Jyothy Laboratories
TOP FMCG COMPANIES IN INDIA
1 Hindustan Unilever Ltd.
2 ITC (Indian Tobacco Company)
3 Nestlé India
4 GCMMF (AMUL)
5 Dabur India Ltd
7 Cadbury India
8 Britannia Industries Ltd.
9 Procter & Gamble Hygiene and Health Care
10 Marico Industries Ltd.
11 Colgate-Palmolive (India) Ltd.
12 Gillette India Ltd.
15 Johnson & Johnson
17 Nestle
18 Nirma Ltd
Some of the best known examples of Fast Moving Consumer Goods companies are
Reckitt Benckiser(manufacturers of dettol, vanish, strepsils etc.)
Sara Lee(goodknight, hit, kiwi shoe polish, brylcreem)
Unilever(unsilk, dove, lux etc.)
Procter & Gamble
HINDUSTAN LEVER LIMITED (HUL)
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company;
Hindustan Unilever Limited has traditionally been a company, which incorporates latest
technology in all its operations. The Hindustan Unilever Research Centre (HURC) was set up in
1958, and now has facilities in Mumbai and Bangalore. HURC and the Global Technology
Centers in India have over 200 highly qualified scientists and technologists, many with post-
doctoral experience acquired in the US and Europe.
Hindustan Unilever Limited is India’s largest Fast Moving Consumer Goods Company, touching
the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care
Products and Foods & Beverages. Hindustan Unilever Limited is also one of the country’s
largest exporters; it has been recognized as a Golden Super Star Trading House by the
Government of India. The mission that inspires Hindustan Unilever Limited’s over 15,000
employees, including over 1,300 managers, is to “add vitality to life.” HUL meets everyday
needs for nutrition, hygiene, and personal care with brands that help people feel good, look good
and get more out of life. The products of Hindustan Unilever Limited are manufactured over 40
factories across India. The operations involve over 2,000 suppliers and associates. Hindustan
Unilever Limited’s distribution network, comprising about 4,000 redistribution stockiest,
covering 6.3 million retail outlets reaching the entire urban population, and about 250 million
rural consumers. Some of the products manufactured by Hindustan Unilever Limited are:
Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Sunsilk, Clinic Plus, Pepsodent,
Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall’s. These products are
popular in Indian as well as foreign markets. For achieving all the goals set, the company needs
its employees and to get their support the company needs to motivate them. BRANDING
STRATEGY Their main challenge was to reverse the down trading in the categories and re-
establish the relevance of their brands in the mind of the consumer. In 2000, they had 110
brands, many undifferentiated and lacking scale. They chose to focus on 35 power brands
covering all consumer appeal and price segments. They are already seeing the benefits. Six
brands — Brooke Bond, Lifebuoy, Lux, Fair & Lovely, Rin and Wheel — have emerged as
mega brands in the last five years, each with sales of more than Rs.500 crores.
Meeting Everyday Needs of People Everywhere
Hindustan Lever Limited (HUL) is India's largest fast moving consumer goods company, with
leadership in Home & Personal Care Products and Foods & Beverages. HUL's brands, spread
across 20 distinct consumer categories, touch the lives of two out of three Indians. They endow
the company with a scale of combined volumes of about 4 million tones and sales of Rs.10,000
crores.
The leading business magazine, Forbes Global, has rated Hindustan Lever as the best consumer
household products company. Far Eastern Economic Review has rated HUL as India’s most
respected company.
The vision that inspires HUL's 32,400 employees (40,000 including Group Companies),
including about 1,425 managers, is to “meet everyday needs of people everywhere - to anticipate
the aspirations of our consumers and customers and to respond creatively and competitively with
branded products and services which raise the quality of life.” This objective is achieved through
the brands that the company markets.
It is an ethos HUL shares with its parent company, Unilever, which holds 51.55% of the equity.
A Fortune 500 transnational, Unilever sells Foods and Home and Personal Care brands through
300 subsidiary companies in about 100 countries worldwide with products on sale in a further
50.
Business nature
HUL is India's largest marketer of Soaps, Detergents and Home Care products. It has the
country’s largest Personal Products business, leading in Shampoos, Skin Care Products, Color
Cosmetics, and Deodorants. HUL is also the market leader in Tea, Processed Coffee, branded
Wheat Flour, Tomato Products, Ice cream, Soups, Jams and Squashes.
HUL is also one of the country's biggest exporters and has been recognized as a Golden Super
Star Trading House by the Government of India; it is a net foreign exchange earner. HUL is
India's largest exporter of branded fast moving consumer goods.
Products, Basmati Rice, Castor Oil and its Derivatives. It is India's largest exporter of Marine
Products, and one of the largest global players in castor.
Market leading brands
HUL’s brands have become household names. The company’s strategy is to concentrate its
resources on 30 national power brands, and 10 other brands which are strong in certain regions.
The top five brands together account for sales of over Rs.3000 crores. Each of these mega brand
has a potential scale of Rs.1000 crores in the foreseeable future. Some of the big brands in Soaps
and Detergents are Lifebuoy, Lux, Liril, Hamam, Breeze, Dove, (all soaps), Surf Excel, Surf,
Rin, Wheel (the number one detergent brand in India, and HUL's
Largest), 501, Sunlight (all detergents). HUL also markets the Vim and Domex range of Home
Care Products.
In the Personal Products business, HUL's Hair Care franchises are Clinic, Sunsilk and Lux
shampoos; the company markets Nihar oil. In Oral Care, the portfolio comprises Close-up and
Pepsodent toothpastes and toothbrushes. In Skin Care, HUL markets Fair & Lovely Skin Cream
and Lotion, the largest selling Skin Care Product in India; a brand developed in India, it is now
exported to over 30 countries. It has been extended as an Ayurvedic cream, an under-eye cream,
a soap and a talc, in line with the strategy to take brands across relevant categories. The other
major Skin Care franchises are Pond’s, Vaseline, Lakme and Pears. In Color Cosmetics, HUL
markets the Lakme and Elle-18 ranges. In Deodorants, the key brands are Rexona, Axe, Denim
and Pond's, while the Talc brands are Pond's, Liril, Fair & Lovely, Vaseline and Lifebuoy. Axe
and Denim are HUL’s franchises for Men’s toiletries. HUL has recently launched Lever Ayush
Ayurvedic Health & Personal Care Products.
HUL has started franchised Lakme Beauty Salons, offering standardized services, in line with
the strategy to add a service dimension to relevant brands.
HUL is one of the world’s largest packet Tea marketer. Its Tea brands – Taj Mahal, Red Label,
Taaza, A1, 3Roses - are among the top brands in the country; it also markets Lipton Ice Tea.
HUL and Pepsi have formed an alliance to distribute a full range of tea and coffee and soft
beverages through vending machines; HUL already has a base of around 15000 such machines.
Hindustan Lever Ltd (HUL) currently on a price discount includes 150 gm Lifebuoy Gold (Rs 3
OFF) TRYING to match prices with the smaller players, large FMCG companies have been on a
price-cutting spree. Of late, Hindustan Lever has announced ‘new’ prices for their various brands
to beat sluggish sales, combined with the introduction of lower-sized packs to get volumes. HUL
is also expected to follow suit with its Surf sachets with the obvious purpose of gaining volumes
at the lower end of the market.
HUL managers describe the exercise as that of dropping price barriers to induce growth for their
brands rather than trying to beat the smaller players with their pricing. More than benchmarking
competition, dropping prices is all about triggering growth and this has always been an integral
part of their strategy. Straddling almost every price segment with its SKUs, HUL has also been
trying to upgrade its consumers, even at the cost of cannibalizing its own brands. Besides,
freebies and promotions have finally been replaced by direct price reductions to lure consumers.
Observes Sujoy Mishra, an analyst At Kotak Securities, “Promotions have shifted to the trade
while freebies have been replaced by price cuts. “ Considering almost every FMCG brand was
doling out a freebie, it was time for FMCG players to differentiate themselves. Observes A.
Sundarajan, Managing Director of market research firm, Market Search, “The round of freebies
has already been played out by the FMCG companies. They are now coming back to their core
brands at a lower price.” HUL have deliberately introduced small pack sizes.
BRIEF HISTORY
In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight soap bars,
embossed with the words "Made in England by Lever Brothers". With it, began an era of
marketing branded Fast Moving Consumer Goods (FMCG). 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). These three companies merged to
Form HUL in November 1956; HUL offered 10% of its equity to the Indian public, being the
first among the foreign subsidiaries to do so. Unilever now holds 51.55% equity in the company.
The rest of the shareholding is distributed among about 380,000 individual shareholders and
financial institutions. Pond's (India) Limited had been present in India since 1947. It joined the
Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986. The
liberalization of the Indian economy, started in 1991, clearly marked an inflexion in HUL's and
the Group's growth curve. Removal of the regulatory framework allowed the company to explore
every single product and opportunity segment, without any constraints on production capacity.
Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the most
visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills
Company (TOMCO) merged with HUL, effective from April 1, 1993. In 1995, HUL and yet
another Tata company, In January 2000, in a historic step, the government decided to award 74
per cent equity in Modern Foods to HUL, thereby beginning the divestment of government
equity in public sector undertakings (PSU) to private sector partners. HUL's entry
into Bread is a strategic extension of the company's wheat business. In 2002, HUL acquired the
government's remaining stake in Modern Foods. In 2003, HUL acquired the Cooked Shrimp and
Pasteurized Crabmeat business of the Amalgam Group of Companies, a leader in value added
Marine Products exports.
PRESENT STATURE
Hindustan Lever Limited (HUL) is India's largest Fast Moving Consumer Goods company,
touching the lives of two out of three Indians with over 20 distinct categories in Home &
Personal Care Products and Foods & Beverages. They endow the company with a scale of
combined volumes of about 4 million tones and sales of Rs.10,000 crores. HUL is also one of the
country's largest exporters; it has been recognized as a Golden Super Star Trading House by the
Government of India. HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair &
Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-
Annapurna, Kwality Wall's – are household names across the country and span many categories -
soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary
products. They are manufactured in close to 80 factories. The operations involve over 2,000
suppliers and associates. HUL's distribution network, comprising about 7,000 redistribution
stockiest, directly
covers the entire urban population, and about 250 million rural consumers. HUL believes that an
organization’s worth is also in the service it renders to the community. HUL is focusing on
health & hygiene education, women empowerment, and water management. It is also involved in
education and rehabilitation of special or underprivileged children, care for the destitute and
HIV-positive, and rural development. HUL has also responded in case of national calamities /
adversities and contributes through various welfare measures, most recent being the village built
by HUL in earthquake affected Gujarat, and relief & rehabilitation after the Tsunami caused
devastation in South India.
HINDUSTAN LEVER claims to practice value-based pricing in which the customers’
perception of the product’s price provides a starting point for developing the marketing mix of
the product. The research department determines this price usually by using focus groups. The
price of Re 1 and 2 for Sunsilk shampoo sachets shows how the price also reflects a concern to
make the purchase more convenient, since the rupee is denoted in this value.
Sunsilk is also available in Rs 45 and Rs 169 price bottles to cater to the demands
keeping in mind the wants of this particular customer segment.
The primary importance of this value-based pricing is that the product demand will be
much higher if its price is in line with the customer’s perception of its value. One crucial concern
for value-based pricing is strict management of cost in order to be able to make a profit at the
value-based price. After the initial price is determined, HINDUSTAN UNILEVER then uses
target costing in order to achieve the required profits.
PROMOTION
Build top of the line consumers’ awareness.
Creating a personality of the brand.
Besides having these general objectives, the advertising objectives are set avoiding to the
advertising strategy for each product, e.g. Sunsilk advertising objectives since it was being re-
launched were:
To increase the usage.
Conditioning benefits.
Makes the hair appear clean and shiny.
Imparts a feeling of freshness-due to fragrance.
Easy to manage, silky, soft hair.
Unique shampoo for every hair type.
Effectively communicate brand promise.
Promotional strategy
Innovative campaigns such as ‘Hairapy’ and ‘Life Can’t Wait’ were launched to attract
women to the brand
Sponsored short films that were broadcast during popular television shows.
Media platforms used
Print media
internet rural campaign
environment concern ads
Music videos
Free sample distribution
Demo campaigning
Promotion of the products in the sunsilk range through movies such as “Fashion”
Sunsilk has come up with a new promotional campaign GOOD HAIR DAYS in six major
cities in collaboration with famous hair stylists of the country.
Sponsorships
Enhancement of product mix
New product formulations according to changing consumer preferences
Advertising
HINDUSTAN UNILEVER believes that messages about product delivered by credible
sources can be very persuasive. Hence Jawed Habib who is an hair care expert endorses Sunsilk
and more value is added to the brand. Consumers relate to products itself, they can relate to a
human being who consumers believe is an expert so Jawed Habib is an expert so is Sunsilk.
Jawed Habib a recognized and highly qualified hair stylist is used by Sunsilk in its ads because
they want to bring out an expert’s image.
MAIN PRODUCT LINE
Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company,
touching the lives of two out of three Indians with over 20 distinct categories in home & personal
care products and food & beverages. They endow the company with a scale of combined
volumes of about 4 million tones and sales of over Rs. 13,000 crores.
HUL has a diverse portfolio of brands offering home care solutions for millions of consumers
across India.
The various segments where HUL has strong presence are as follows:
Food brands
Home care brands
Personal care brands
Water
Nutrition
Health, hygiene & beauty
A brief study of the various product lines is done in the following section.
Food brands:
HUL is one of India’s leading food companies and their products are the leaders in their
respective fields. Some of the food brands are as follows:
Brooke Bond 3 Roses Playful banter, a little mischief, serious conversation…
there’s no time for young couples like the time spent sharing a cup of 3 Roses.’
Annapurna Partnering with the mom in nurturing her dreams, Annapurna Atta is
aimed at helping her provide wholesome tasty nutrition to her family.
Red Label India’s favorite cup of tea, the great taste of Red Label brings people
closer together and strengthens relationships.
Brooke Bond Taaza Brooke Bond Taaza lifts me and unshackles my mind, allowing
me to see and realize possibilities.
Taj Mahal Brooke Bond Taj Mahal is an exclusive selection of teas for the
discerning consumer.
Bru Ek cup Bru aur mood ban jae…
Kissan With Kissan, good food is loved not shoved!
Knorr helps families make meal times special, nutritious, tasty and healthy.
Kwality Wall’s A good honest scoop of daily pleasure.
Lipton has a range of vitality teas that truly encompass the goodness of tea.
Home care brands:
HUL has a diverse portfolio of brands offering home care solutions for millions of consumers
across India.
Active Wheel aims at giving freedom from painful & tiring laundry
Cif targets being the best cleaner to let the utensils shine.
Comfort Is the world’s largest fabric conditioner brand.
Domex Introduced as a strong toilet cleaner that eradicates all the germs.
Rin aims at providing the best whiteness’ which can be demonstrable.
Sunlight is a color care brand
Surf Excel The washing powder brand.
Vim Created in 1885, the Vim brand is placed as a domestic appliances cleaning
brand.
Personal care brands:
HUL’s personal care brands, including Axe, Dove, Lux, Pond's, Rexona and Sunsilk, are
recognized and known by consumers across India. They are aimed at helping to look good.
Aviance provides women with customized beauty solutions.
Axe is a leading deodorant brand.
LEVER Ayush Therapy provides customized ayurvedic solutions.
Breeze beauty soap targeted towards the lower end of the market.
Clear New Clear is a hair washing shampoo.
Clinic Plus is India’s largest selling shampoo.
Closeup The dental care product.
Dove is premium beauty soap.
Fair & Lovely Built more than 30 years ago, World’s No.1 Fairness cream.
Hamam Holistic skin care experiences perfected over the ages to deliver
healthy, beautiful skin.
Lakme is an ally to the Indian Woman and inspires her to express her unique
beauty and sensuality. Thus, enabling to realize the potency of beauty.
Lifebuoy is available in multiple variants in soaps and specialist formats such
as liquid hand wash, catering to the entire family.
Liril Awaken, and enliven your senses with a Liril bath.
Lux believes in passion for beauty. It continues to be a favorite with generations
of users for a sensuous experience of luxury.
Pears the purest and most gentle way to skincare!
Pepsodent India is committed to improve the overall Oral health of Indians.
Pond’s Get the expert to look after your skin
Rexona gives you 24 hr protection from sweat and body odor and therefore the
confidence to handle whatever the day has in store.
Sunsilk encourages young women in India to live for today. Sunsilk helps you
transform the beauty of your hair instantly because LIFE CAN'T WAIT!!
Vaseline Your skin is amazing. It deserves to be treated as such.
More HUL Products
You may have seen a variety of water purifier advertisements and so may be confused on which
one to buy. This one is about Hindustan Unilever PureIt and is not a recommendation to buy
but just a review on how it works and performs over others.
The main advantage of Pure IT water purifier is that you don’t have to worry about either
continuous water supply or electricity supply. Having said that, it may also be a disadvantage
that you need to manually put in water every time the water level depletes to near zero. The
bottom transparent bottom chamber can store up to a maximum of 9 liters of water and the top
chamber another 9 liters. Hence if your family is a big one say consisting of at least 8-9
members, then you may have to fill the water chamber multiple times a day.
However, like most of the families if only 4 or 5 people exist, then you may have to add water
every couple of days.
The way this works is simple. We add water to the top chamber which is unfortunately not
transparent and so have to be very careful when it is just about to fill completely. The moment
you pour in the water, it goes through a ‘Microfiber Mesh‘ that removes any visible dirt. The
next stage is to go
through a Compact carbon Trap that further removes any dirt, if present besides removing any
parasites or pesticides.
The water will then be purified using the proprietary Germ kill battery that kills harmful bacteria
and Viruses.
Then the water reaches the lower part of the Unit where it goes through a polisher that adds taste
to the water and makes it completely odorless. Then the water rises above the chamber and falls
into the visible lower chamber from which a tap arises.
The battery has a life indicator and normally lasts for nearly a year (for single family consisting
of 4 members). The life is indicated by a bar, which when turns red should be immediately being
replaced. The battery costs only Rs.350 and the entire unit cost just Rs.2000.
Hindustan Unilever Ltd (HUL) is extending its OOH (Out of
Home) business by setting up 'experiential kiosks' under the Lipton brand. Graduating from its
existing vending machines, almost 50 such kiosks are planned this year which it would set up
at corporate parks, railway stations and airports. According to HUL officials, "Unlike the
vending machines where you just need to push a button, the new experiential kiosks would serve
mock tails and heath oriented beverages made from HUL's beverage brands. Apart from
beverages, the kiosks are also expected to serve ice-creams. Through the kiosks we want to give
experiential bursts for our beverage brands."
The kiosks would be run on a franchise model. “We would have a business partner on board and
the kiosks will be run on 10 by 10 sq ft area,” added the official. Having done a pilot test in
Delhi recently, HUL is now poised to roll out these kiosks nationally along the lines of its
existing ice-cream parlor brand - Swirl’s which is also run through franchisees. In fact, ice-
creams have become a profitable business for HUL within its foods portfolio which includes
beverages and processed foods.
Meanwhile within the foods business, HUL intends staying away from the ready-to-eat
(RTE) business. “We have recently introduced the ready-to-cook range under Knorr but we
certainly would not be entering the RTE category in foods. In future, there would be more
products under the Knorr franchise but these would be adapted from our international portfolio,”
HUL officials stated.
HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk,
Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall's –
are household names across the country and span many categories - soaps, detergents, personal
products, tea, coffee, branded staples, ice cream and culinary products. They are manufactured
over 40 factories across India. The operations involve over 2,000 suppliers and associates. HUL's
distribution
PRODUCT PLANNING STRATEGIES
1.
Market research is crucial for efficient product planning.
Every company needs to think about product planning strategies. Companies need to be
forward-thinking, working to design future products by estimating the needs of the market.
Depending on the product cycle and industry, this process requires a month's preparation or
years. For example, many large ship manufacturers plan their products years in advance
because it will take years for those products to be built and completed.
Market Research
2. Market research is one of the most important parts of product planning strategy. Asking
current customers how existing products can be improved and what products they would
like to see being offered gives companies an insight into the mind of the consumer. The
majority of large corporations devote significant resources to market research, which
includes focus groups, beta testers (new product testers) and market analysis.
Internal Research and Development
3. Google famously uses the 80/20 rule. Employees must spend 80% of their time working
on mandatory projects and 20% of their time working on whatever they like. This free,
creative time has resulted in some of Google's most popular products, including Gmail.
Internal research and development is often where those who know the company's products
best are allowed to suggest and develop improvements and even whole new products. The
engineers and researchers are intimately familiar with the workings of product technology,
and they are able to see more keenly where advances can be made.
The Competition
4. Watch the competition. Monitor what competitors are doing, what products they are
releasing, what their press releases say about upcoming products. The competition provides
valuable clues as to the direction the industry is headed. If you overlook what the
competition is doing, you may be left in the dust. In addition, you may be able to improve
on the new products your competitor is working on and offer cheaper or better alternatives.
Current Advances
5. Companies need to be aware of current advances in technology. As the technology in an
industry advances, so too do the products that industry produces. You need to be aware of
the latest manufacturing innovations and conscious of not only your industry but the
industries of all related technologies. For example, if an electronics manufacturer uses a
certain processor, that processor may not be a core component in their technology but an
advance in processor speeds may increase the functioning of their product. This is why you
need to pay attention to the industries of your parts suppliers.
A business looking to introduce some product into the stream of commerce must plan and design
a product strategy carefully. Two major product strategies include price-based product strategy
and product differentiation. When developing a strategy, strive to answer the following
questions: who the product is aimed at; what benefit the product brings; what your position is in
the marketplace; and what advantage the strategy will have over those of your competitors.
PRICE-BASED PRODUCT STRATEGY
1. When using a price-based product strategy, the product is planned according to such
things as cost-plus pricing (where you set the price of the product at the production cost
plus a specific profit margin); value-based pricing (where the price is derived according to
the product's value in relation to competitor's products); and target-return pricing (where
you set a price in order to receive a certain profit return). Essentially, your strategic angle in
a price-based strategy is to set the price in such a way that your product has a competitive
advantage over other similar products.
2. When implementing a price-based product strategy, consider another facet: price
discounts. After choosing a price-based method, and after formulating your strategy
according to the factors in the overview, you will arrive at a list price (the price that you
want to sell the product). Discounting the price lowers the list price, but makes purchasing
the product more lucrative. Discount examples include quantity discounts (to be offered for
customers who purchase a specific bulk quantity of your product) or seasonal discounts (to
be offered during the year).
Product Differentiation
3. Use a product-differentiation strategy when your firm and competing firms offer a
product that fulfills the same need (such as coffee). In a product-differentiation strategy,
your goal is to put distance (in a good way) between your product and your competitor's
product. Essentially, your competitor sells Coffee Blend A, but you Sell Coffee Blend B; in
your strategy, you need to produce Coffee Blend B so that coffee lovers find yours to be
superior to your competitor's.
4. There two forms of product differentiation: vertical differentiation and horizontal
differentiation. To implement a vertical product-differentiation strategy, your goal is to
improve features of your product so that the customers perceive a difference in quality due
to your improvements. Horizontal differentiation focuses on your customers' preferences
and should be used when the features of your product cannot differ substantially from the
features of your competitors.
According to economicswebinstitute.com, one common example of horizontal
differentiation is with ice cream: different flavors are not "better" than others. If you cannot
make your product "better," focus instead on marketing to customer taste and preference
(such as conducting research to discover more people like one flavor over another\
PRODUCT PLANNING OF HUL
Hindustan Unilever Ltd (HUL) is reacting faster to competition and market trends to avoid being
caught unawares by events such as the volatility in raw material prices in 2008, even as it plans
aggressive expansion.
India’s largest consumer goods maker by revenue has adopted a strategy to defend and raise
market share by increasing production capacities, reducing inventory levels and improving the
percentage of orders satisfied from stock at hand, resulting in better service and volume growth.
“We have taken a number of steps organizationally,” said Pradeep Banerjee, supply chain
director, HUL, and one of the executives at the centre of the change process.
Given the increased number of new launches and promotions, business teams across functions
from planning to production and sales are involved in the introductory exercise, Banerjee said.
Such moves reduce the amount of old inventory lying with retailers and get new innovations to
market faster.
For instance, its Silvassa detergents factory turned a single assembly line into a twin track last
year, doubling output, after some modification of the machines. The process has been replicated
on two more lines in the unit and follows the principles of kaizen, the Japanese management
philosophy of constant improvement based on a common-sense approach and the use of cost-
effective techniques.
The effects have been dramatic: HUL has seen overall machine production levels improve from
75% in 2009 to 92% in 2010; a reduction in defects per 1,000 pieces by 50% and a drop in
wrapper wastage by 70%.
The twin-line innovation has helped meet demand “without the need for investing in newer
machines”, said a company spokesperson. The installation of new capacities follows an increase
in sales in the last six-eight months.
works “on volumes and their competition is regional and HUL national”, said Shirish Pardeshi,
industry specialist, institutional equities, Anand Rathi Financial Services Ltd. “Smaller batch
sizes and flexibility in production help it to respond faster to volatility and competition.”
The changes mark a new aggressive phase at the company, which has been in India for over 75
years.
While sales volume rose in the March quarter, according to lost market share on a year-on-year
basis market researcher The Nielsen Co., HUL in most categories—except shampoos—in the
first two months of the fiscal. Banerjee, though, is planning ahead for the next 18-24 months,
adding capacity.
“Will we sell 1 million tones of laundry? Yes, we will. Will Banerjee said. “These are all we
sell 2,000 tones of tea? Of course, we will,” indicative numbers, but they indicate a change from
the past and indicate substantially more than what we have got at present.”
HUL sells 2 million tones of products a year through a primary distribution network of 2,600
distributors. It has a portfolio of 1,500 stock-keeping units, or different-sized packs in 61
formats. The maker of Surf and Rin detergents and Sunsilk services one million retailers directly
and reaches six million indirectly.
The 2008 collapse in the price of crude oil, a key input, to being stuck with high levels of old
inventory, $40 from $140 a barrel led to HUL while rivals were quick to take advantage and
launch cheaper products. The company lost some 5 percentage points of market share as low-
end, cheaper detergents were launched on the back of the commodities market volatility that
year.
Volume growth fell 4% in the quarter ended March 2009, having risen 10% in the year-earlier
quarter. Volumes have since recovered to 11% growth in the quarter ended March 2010 because
of price cuts in key categories such as laundry, soaps and shampoos, besides a 39% increase in
spending on advertising in the quarter.
HUL has also improved its customer order fill rate—a measure of an inventory’s ability to meet
demand—and speed to market.
“We have reduced the finished goods and raw materials in the chain dramatically by 30-40%,
which means lesser working capital, faster response and better service,” said Banerjee. This
effectively means that the number of days that stock is held has dropped to 60 days from close to
90 days.
The delivery of orders “has improved from 75-76% to 90% over the last 12-18 months,”
Banerjee said.
Additionally, if it earlier took the company 70 days to land a product in the market, it can now do
so in 35 days. “In the last five-six months, we have reduced the time by 50% in half of our
networks, and we are looking at further halving this,” Banerjee said.
Over the last year, HUL has relaunched 80% of its portfolio, making sure that prices reflect
market trends.
has also sought to improve its fill rate, a measure of HUL stock availability with distributors.
“At any given time, the stock we have is not older than one-two months and, with full range
availability, it improves sales pick-up,” said stockiest in Mumbai. Suleiman Hussain,
proprietor, Sunshine Agency, an HUL
Traditional retailers account for 90% of overall business, while modern formats account for the
rest. At the end of 2009, the company started expanding its distribution reach. “We expect to
triple rural coverage and improve urban coverage by 15%,” it said in its annual general report
released last week.
Brokerage Sharekhan Ltd said in its quarterly preview report that it expects the firm to post
growth of 9.2% in revenue and 5.6% in net profit in the April-June quarter. Higher raw material
costs and advertisement spending coupled with lower sales realization in the soap and detergent
categories will affect overall profitability, it said.
Food inflation and higher input costs will hit growth and profit at consumer goods companies in
the three months ended June, Mint reported on Monday, based on a survey of four brokerages.
Earnings will, however, be shored up by rural markets, thanks to welfare schemes and higher
incomes from rising commodity prices.
PRODUCT DISTRIBUTION CHANNEL
For rural India, HUL has established a single distribution channel by consolidating categories. In
a significant move, with long-term benefits, HUL has mounted an initiative, Project Streamline,
to further increase its rural reach with the help of rural sub-stockiest. It has already appointed
6000 such sub-stockiest. As a result, the distribution network directly covers about 50,000
villages, reaching about 250 million consumers corporate relationships which in turn prove
beneficial for the functioning of the company.
“The most important thing in life is not to capitalize on your successes - any fool can do that.
The really important thing is to profit from your mistakes.”
BRANDING STRATEGIES ADOPTED BY HUL
HUL has a large brand portfolio consisting of nearly 110 bands. In every product line, it has built
a number of brands over a period of time. Quite a few brands have come to its fold from the
parent company. It has also acquired several ongoing brands from the market. HUL also
vigorously pursues brand extension strategy. And concurrently, HUL undertakes line pruning
and brand restructuring and consolidation, based on marketing compulsions. HUL is also playing
the rejuvenation and re-launch game. With great benefit the corporate-level endeavors at
business expansion and diversification are also throwing new challenges on the brand strategy
front. HUL lends itself for a proper understanding of the complexity of the brand management
task. We shall examine how HUL handles the complex demands in brand management.
Such an array of brands is the outcome of a conscious corporate strategy by HUL. As a
corporate, HUL wants to be a leader in every one of its businesses and the strategy is to fight on
the strength of the competitive advantage arising from the possession of strong brands. It is this
strategy that is getting reflected in the development of a multitude of strong brands. If we take
the business of bathing soaps, as an example, HUL has the objective of being a national player
(not a niche or a regional marketer) and the leader therein. HUL also wants about 30 per cent of
the corporate income to come from this line.
So, HUL opted for the strategy of developing quite a few strong brands in this line, and among
them they cover different market segments and price points. Dove, Lux, Liril, Rexona, Pears and
Lifebuoy are the outcome of such a well planned brand strategy implemented over time.
Lifebuoy is 100 years old and Liril 15 years old. In fact, HUL has about 10 brands of toilet soaps
each having good volume of sale to its credit. The point is that decisions on brand portfolio are a
fundamental expression of the company’s objectives and strategy governing a given business.
HUL Locates Positioning Opportunities:
HUL methodically goes about the task of developing a brand portfolio across a product category.
It first identifies the various positioning opportunities across benefits, target groups and price
points. Existing brads are mapped across these positioning opportunities, and gaps for possible
new offers are explored.
The company then estimates the likely volumes for each of the possible opportunity and the
financial viability and sustainability of the propositions in the long term. If some of these gaps
look promising, HUL goes ahead with the plans.
It examines the existing set of brands with the company, the product technologies available, the
benefits that can be provided and other considerations that have a bearing on the company’s long
term interests in the business. Finally, if the company decides to go in for the new offer, a
decision has to be taken as to whether new brands should be created or extensions if existing
brands should be preferred or ongoing brands from the market acquired.
HUL hires brands to capture new opportunities:
Towards the close of the 1990s, HUL found that the germicide segment of the soap market was
growing fast, with RCI’s Dettol antiseptic soap leading it. HUL did not have suitable offer in its
stable to capture a share of this segment. Lifebuoy was not strictly meeting the particular benefit.
HUL knew that launching and developing a new brand would take a lot of time and resources,
and the company would miss the market if it chose this route. HUL did not have the product
formula either to enter this segment. It was in this background that HUL decided to hire the
Savlon brand from J&J. Savlon was a successful antiseptic lotion, a competitor to Dettol lotion.
Just as the Dettol soap owed its origin to the success of the Dettol lotion, HUL assessed that a
Savlon antiseptic soap could be successfully extended from the Savlon lotion.
It entered into an agreement with J&J for the use of Savlon brand name and the product formula,
and launched the Savlon antiseptic soap. HUL very deftly managed successfully new brand
launch and merged as a challenger to Dettol soap. J&J secures a good royalty from HUL for
lending the brand. It is a potentially win-win arrangement for both companies.
FUTURE PROSPECTS
The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the
economy. A well-established distribution network, intense competition between the organized
and unorganized segments characterizes the sector. FMCG Sector is expected to grow by over
60% by 2010. That will translate into an annual growth of 10% over a 5-year period. It has been
estimated that FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs 92,100 crores
in 2010. Hair care, household care, male grooming, female hygiene, and the chocolates and
confectionery categories are estimated to be the fastest growing segments, says an HSBC report.
Though the sector witnessed a slower growth in 2002-2004, it has been able to make a fine
recovery since then.
For example, Hindustan Levers Limited (HUL) has shown a healthy growth in the last quarter.
An estimated double-digit growth over the next few years shows that the good times are likely to
continue.
Growth Prospects
With the presence of 12.2% of the world population in the villages of India, the Indian rural
FMCG market is something no one can overlook. Increased focus on farm sector will boost rural
incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure
facilities will improve their supply chain. FMCG sector is also likely to benefit from growing
demand in the market. Because of the low per capita consumption for almost all the products in t
the country, FMCG companies have immense possibilities for growth. And if the companies are
able to change the mindset of the consumers, i.e. if they are able to take the consumers to
branded products and offer new generation products, they would be able to generate higher
growth in the near future. It is expected that the rural income will rise in 2007, boosting
purchasing power in the countryside. However, the demand in urban areas would be the key
growth driver over the long term. Also, increase in the urban population, along with increase in
income levels and the availability of new categories, would help the urban areas maintain their
position in terms of consumption. At present, urban India accounts for 66% of total FMCG
consumption, with rural India accounting for the remaining 34%. However, rural India accounts
for more than 40% consumption in major FMCG categories such as personal care, fabric care,
and hot beverages. In urban areas, home and personal care category, including skin care,
household care and feminine hygiene, will keep growing at relatively attractive rates. Within the
foods segment, it is estimated that processed foods, bakery, and dairy are long-term growth
categories in both rural and urban areas.
APPROACH TO STUDY
Objectives of the Study
The research aims at identifying salient features of the Product Strategies adopted by FMCG
companies with reference to HUL in respect of some of their offerings. The following are some
of the specific objectives of the study.
1. To assess the product strategy used in consumer market.
2. To evaluate the Product mix strategy of HUL in Indian Market.
3. To determine the customer perception and opinion on product lines offered by HUL
4. To assess the existing and desired products of HUL.
Scope of the Study
The scope of the study deals with the area that has been considered in the research. The area
considered in the research is product mix strategies of Hindustan Uni-Lever in Indian Market.
Consumer opinion on the product mix strategy of the HUL is collected with the aid of designed
questionnaire. The sample respondents are selected from the various segments in Bangalore and
Mysore. The collected data is analyzed to meet the research objectives.
RESEARCH METHODOLOGY
Research methodology has many dimension, it includes not only the research method but also
consists the logic behind the methods used in the context of the study and explains why only a
particular method of technique had been used so that search lend themselves to proper
evaluation. At the outset may be noted that there are several ways of studying and tacking a
problem. The formidable problem that follows the task of defining the research problem is the
preparation of the design of research project popularly known as research design.
More explicitly the designing decision happened to be in respect of following:
What is study about?
Why is study being made?
Where will the study be carried out?
What type of data is required?
What will be the sample design?
What period of time will the study include?
How will the data be analyzed?
In what style will the report will prepared?
The purpose of this section is to describe the research procedure. This gives the researcher
sufficient support to give his argument for opting certain alternatives and to justify his position.
Research methodology is a way to systematically solve the research problem. It include all those
steps that are generally adopted to solve the research problem.
IT GENERALLY INVOLVES
DATA COLLECTION:
The task of data collection is being after a research problem has been defined and research
designed/plan chalked out. Data collection is to gather the data from the population. The data can
be collected of two types:
Primary Data
Secondary data
PRIMARY DATA are those which are collected afresh and for the first time, and thus happened
to be original in character. Methods of primary collection are as follows:
Questionnaire
SECONDARY DATA is being search sites like magazines, newspapers, journals, websites and
the data has been collected through other approaches.
SAMPLE SIZE is 100
METHOD USED IN STUDY
In this study both primary and secondary method of Data collection is used in primary the
observation method and interview method was used Research taken the interview of the retailer
and consumers and find what is the advertising effect on different brand of “FMCG. This is
finding out that what type of advertisement, Marketing Strategy attract the consumer. The study
is fresh and for the first time and happen to the original in character. Not used any previous
reports of company in Primary Data.
Secondary Source for collecting data used in this research are internet and from Magazines the
information collected from the retailers and the consumers.
SOURCE OF DATA
The data source are secondary as well as primary. In secondary, the data consists of information
that already some where that have been collected for another purpose.
In primary source the data consist of original information gathered for the specific purpose.
The cluster sampling technique is decided to collect the data from consultants in Yamuna Nagar
city.
DATA BASED REPORT GATHERED
Data Analysis and Interpretation.
Q1-You are dealing with the FMCG Products from?
No of years No of respondents %age of respondents
5 years 65 65%
5-10 years 25 25%
More than 10 years 10 10%
Interpretation: - Above Table shows that 60% of the dealers selling from 5
years and rest of them more than 5 years that means they are satisfied with
company. So they are doing regularly.
Q2-Which products of FMCG are most preferable by customers?
Product No of respondents %age of
respondents
HUL 32 32%
DABUR 16 16%
NESTLE 20 20%
BRITANIA 8 8%
NIRMA 16 16%
COCA COLA 8 8%
Interpretation:-This chart is showing that %age of sales of HUL is 32% which is
more than that of others. It means the selling of HUL is more than that of other
FMCG products
Q3. In which season the selling of products is more?
Months No of respondents %age of
respondents
Jan-March 15 15%
Apr-June 45 45%
July-Sep 5 5%
Oct-Dec 35 35%
%age of selling of products
32%
16%20%
8%
16%8%
HUL
DABUR
NESTLE.BRITANIA.
NIRMA
COCA COLA
Interpretation:-This chart is showing that in the month of April to June the sales
of FMCG products is very high than that of other which is 4%.it mean it may
after that in the month of October to December the sales of FMCG product is
also more.
Q4.Which factors influence the consumers to purchase the HUL products?
Factors No of respondent %age of
respondents
Quality 18 18%
Price 14 14%
Sales promotion activities 9 9%
Brand image 54 54%
Services 5 5%
Interpretation:-Brand image is influenced most of the people to purchase the
consumer durable.
Q5. Media plays an important role of making the awareness of the product.
What do you think?
Percentage No of respondents
20%-30% 4
30%-50% 16
50%-70% 36
70%-90% 24
%age of factors influence consumer to purchase FMCG product
18%
14%
9%54%
5%
quality
price
sales promotionactivities
brand image
services
5%20%
45%
30% 20%-30%
30%-50%
50%-70%
70%-90%
Interpretation:-60%to 70% of the people get aware from media.
Q6. What are the factors in media which makes the consumer more attentive
towards the new, improved and innovative products and technology?
Factors of media No of respondents %age of respondents
Television 59 59%
News paper 17 17%
Internet 14 14%
Magazine 3 3%
Hoardings 7 7%
% of respondents
59%17%
14%3% 7% television
news paper
intrnet
magazines
hoardings
Interpretation: - the factor in media which makes the consumer more attentive
towards the new, improved and innovative products and technology is Television
which plays important role in advertisement in comparison to others.
SWOT ANALYSIS OF HUL
Strengths
1. Strong and well differentiated brands with leading share positions
2. Distinctly placed products providing reach to every segment of society.
3. Consumer understanding and systems for building consumer insight
4. Integrated supply chain and well spread manufacturing units
5. Distribution structure with wide reach, high quality coverage – The launch of project “Shakti”
has helped HUL to create brand awareness and extensive reach in rural India.
6. Access to Unilever global technology, capability and sharing of best practices from other
Unilever companies.
7. Well placed to take advantage of growth in rural India and lower strata of the society through
“Shakti”.
8. It could look at introducing products from its parent company like margarine in order to cater
to changing consumer tastes and opportunities in food sector.
9. It can be a leader in exports by positioning itself as a sourcing hub for Unilever companies in
various countries.
Weaknesses
1. Price positioning in some categories allows for low price competition like Amul captured
Quality’s market.
2. Limited success in changing eating habits of people.
3. Competitors focusing on a particular product and eating up HUL’s share, like Nirma focusing
on soaps and detergents.
Opportunities
1. Growing consumer base due to increasing income levels and new consumers from lower strata
of the society
2. Untapped market in branded Ayurvedic medicines and other such consumer products.
3. Opportunity in Food sector: changing consumer tastes
4. Expansion of horizons towards more and more countries
Threats
1. Unfavorable raw material prices due to inflation, reducing profitability.
2. Heavy onslaught of competition in the core categories from emerging players like ITC will
result in higher advertising expenditure
3. Spurious/counterfeit products in rural areas and small towns.
4. Reduction in real income of consumers due to high inflation.
FINDINGS AND BIBLIOGRAPHY
Findings
The dealers selling from 5 years and rest of them more than 5 years that
means they are satisfied with company. So they are doing regularly.
The %age of sales of HUL is 32% which is more than that of others. It
means the selling of HUL is more than that of other FMCG products
In the month of April to June the sales of HUL products is very high than
that of other which is 4%.it mean it may after that in the month of October to
December the sales of HUL product is also more.
Brand image is influenced most of the people to purchase the consumer
durable.
60%to 70% of the people get aware from media.
The factor in media which makes the consumer more attentive towards the
new, improved and innovative products and technology is Television which
plays important role in advertisement in comparison to others.
LIMITATIONS
1. Lack of time is also a limitation in my project.
2. People don’t want to answer the question so it is very difficult make exact results.
3. Some respondents were biased. they are not interested in advertising.
SUGGESTIONS
Trial packs should be used because customer must have to introduce the product. Once
customer gets idea about product he comes to know advantages of products.
The products should be cheap the home delivery system to deliver the products so the
delivery should be instant.
There must be multiple options for purchasing the products for distributers like online,
tale and instant purchasing.
.
CONCLUSION:
The FMCG industry in India is having huge potential to grow. The Industry is now focusing
towards the semi-urban and rural market for growth as there are many remote areas in our
country which are untouched and they don’t have the exposure to number of alternatives or
brands, so by focusing on these aspects of Indian economy the FMCG sector in India has a huge
potential to grow further.
Further, the companies like TATA and HUL are using CSR i.e. Corporate social
responsibility to further strengthen their brand or create a positive image in the minds of people
thus it will help in increasing their revenues. The advertising campaigns have also changed to the
changing scenario in Indian economy, and the companies in the FMCG sector are becoming
more cautious on making false claims as the consumer in India has evolved and is more informed
than its ancestors.
According to my views the product or the brand or the company which has a positive
image in the minds of the people and which is innovative in its ideas to fast changing consumer
preference and which gives the best value for price is going to survive in the long run or else
they have to either change their strategy or quit the Indian FMCG market.
BIBLIOGRAPHY
www.adv.in
www.google.com
www.India.com
www.agencytags.com
QUESTIONNAIRE
Q1-You are dealing with the FMCG Products from?
5 years
5 years 5-10 years
More than 10 years
Q2-Which products of FMCG are most preferable by customers?
HUL
DABUR
NESTLE
BRITANIA
NIRMA
COCA COLA
Q3. In which season the selling of products is more?
Jan-March
Apr-June
July-Sep
Oct-Dec
Q4.Which factors influence the consumers to purchase the HUL products?
Quality
Price
Sales promotion activities
Brand image
Services
Q5. Media plays an important role of making the awareness of the product. What
do you think?
20%-30%
30%-50%
50%-70%
70%-90%
Q6. What are the factors in media which makes the consumer more attentive
towards the new, improved and innovative products and technology?
Television
News paper
Internet
Magazine
Hoardings
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