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    PROJECT REPORT

    ON

    Marketing Strategies

    of Hindustan Unilever Ltd.

    AT

    HINDUSTAN UNILEVER LTD.

    PLOT NO.-8, BLOCK-A, SOUTH CITY-I

    GURGAON

    Research Supervisor Submitted By:

    Mr. Shashank Shekhar Chandra Bhushan Tiwari

    Branch Manager, HUL Roll No. 08061234015

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    ACKNOWLEDGEMENT

    I wish to express my heartfelt appreciation to many who have contributed to this study. I

    would like to thank Mr. Shashank Shekhar, Manger, HUL for his valuable guidance. I

    wish to express my gratitude to my faculty guide, who provided me with constant

    impetus to complete this project.

    CHANDRA BHUSHAN TIWARI

    2

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    TABLE OF CONTENTS

    Executive Summary

    Introduction

    Company Profile

    Current Market Context

    Research & Innovation Centre

    Safety & Health Policy

    Market Strategies

    Hindustan Unilever Ltd.

    Competitors

    Research Methodology

    Scope

    Findings, Data Analysis & Conclusion

    Recommendations

    Suggestions

    Limitations

    Bibliography

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    (Annexure) Questionnaire

    EXECUTIVE SUMMARY

    Hindustan Unilever Limited (HUL) is Indias 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 units and sales of Rs.10, 000 crores.

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

    Super Star Trading House by the Government of India. Hence, research aims is that to

    study the existing marketing practices, emerging marketing plans and understanding

    companies business strategy with its profile. The main recommendations have been made

    on the addressing of the advertising message to the customers. An attempt has been made

    to formulate the communication in a way to build it on a platform of the basic need for

    buying HUL products. In another recommendation the suggestions towards better dealer

    interest in HUL products has been given a chance.

    The research is based primarily on primary data; however few references to industry

    figures from secondary data have been made. Data has been collected through in depth

    interviews and administered questionnaires.

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    INTRODUCTION

    Over 100 years' link with India. In the summer of 1888, visitors to the Kolkata harbor &

    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).

    Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim.

    Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937.

    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. The

    erstwhile Lipton's links with India were forged in 1898. Unilever acquired Lipton in

    1972, and in 1977 Lipton Tea (India) Limited was incorporated.

    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

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    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, Lakme Limited, formed a 50:50 joint venture,

    Lakme Lever Limited, to market Lakme's market-leading cosmetics and other appropriate

    products of both the companies. Subsequently in 1998, Lakme Limited sold its brands to

    HUL and divested its 50% stake in the joint venture to the company.HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in

    1994, Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary

    Pads. HUL has also set up a subsidiary in Nepal, Nepal Lever Limited (NLL), and its

    factory represents the largest manufacturing investment in the Himalayan kingdom. The

    NLL factory manufactures HUL's products like Soaps, Detergents and Personal Products

    both for the domestic market and exports to India.

    The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on the

    Foods and Beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari General

    Foods, with significant interests in Instant Coffee. Then in July 1993, Brooke Bond India

    and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL), enabling

    greater focus and ensuring synergy in the traditional Beverages business. 1994 witnessed

    BBLIL launching the Wall's range of Frozen Desserts. By the end of the year, the

    company entered into a strategic alliance with the Kwality Icecream Group families and

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    in 1995 the Milkfood 100% Icecream marketing and distribution rights too were

    acquired.

    Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal

    restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in

    1998. The two companies had significant overlaps in Personal Products, Specialty

    Chemicals and Exports businesses, besides a common distribution system since 1993 for

    Personal Products. The two also had a common management pool and a technology base.

    The amalgamation was done to ensure for the Group, benefits from scale economies both

    in domestic and export markets and enable it to fund investments required for aggressively building new categories.

    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 Pasteurised Crabmeat business of the

    Amalgam Group of Companies, a leader in value added Marine Products exports .

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    COMPANY PROFILE

    The mission that inspires HUL's 36,000 employees, including over 1,350 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. It is a mission

    HUL shares with its parent company, Unilever, which holds 51.55% of the equity. The

    rest of the shareholding is distributed among 380,000 individual shareholders and

    financial institutions.

    HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's,Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna,

    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 stockists, directly covers the entire urban population, and about 250 million

    rural consumers.

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

    operations. The Hindustan Lever Research Centre (HLRC) was set up in 1958, and now

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    has facilities in Mumbai and Bangalore. HLRC and the Global Technology Centres in

    India have over 200 highly qualified scientists and technologists, many with post-doctoral

    experience acquired in the US and Europe.

    HUL believes that an organisation'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 inearthquake affected Gujarat, and relief & rehabilitation after the Tsunami caused

    devastation in South India.

    Over the last three years the company has embarked on an ambitious programme, Shakti.

    Through Shakti, HUL is creating micro-enterprise opportunities for rural women, thereby

    improving their livelihood and the standard of living in rural communities. Shakti also

    includes health and hygiene education through the Shakti Vani Programme, and creating

    access to relevant information through the iShakti community portal. The programme

    now covers about 50,000 villages in 12 states. HUL's vision is to take this programme to

    100,000 villages impacting the lives of over a 100 million rural Indians.

    HUL is also running a rural health programme Lifebuoy Swasthya Chetana. The

    programme endeavtheirs to induce adoption of hygienic practices among rural Indians

    and aims to bring down the incidence of diarrhoea. It has already touched 70 million

    people in approximately 15000 villages of 8 states. The vision is to make a billion Indians

    feel safe and secure. If Hindustan Lever straddles the Indian corporate world, it is

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    because of being single-minded in identifying itself with Indian aspirations and needs in

    every walk of life.

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    HINDUSTAN UNILEVER LIMITED INDIAS LARGEST FMCG COMPANY

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    FINANCIAL OVERVIEW

    12

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    Hindustan Lever Limited ShareholdingPattern

    Unilever

    51.6

    Flls

    13.7

    Domestic

    Fls

    14.8

    Individual

    19.9

    13

    HUL Equity Capital - 50 Mn $Market Capitalisation - 7,300 Mn $

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    PRESENT MARKETING STRATEGY:

    Mission:

    Hindustan Unilever Limited 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.

    Policy:

    HUL has earned a reputation for conducting its business with integrity and with respect

    for the interests of those their activities can affect. This reputation is an asset, just as real

    as their people and brands.

    From HUL Spokesperson To succeed requires the highest standards of behavior from all

    of us. The general principles contained in this Code set out those standards. More detailed

    guidance tailored to the needs of different countries and companies will build on these

    principles as appropriate, but will not include any standards less rigorous than those

    contained in this Code.

    We want this Code to be more than a collection of high-sounding statements. It must

    have practical value in their day-to-day business and each one of us must follow these

    principles in the spirit as well as the letter. ref: business world magazine.

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    Obeying the Law

    HUL companies and employees are required to comply with the laws and regulations

    of the countries in which they operate.

    Employees

    HUL is committed to diversity in a working environment where there is

    mutual trust and respect and where everyone feels responsible for the

    performance and reputation of the company. HUL will recruit, employ and

    promote employees on the sole basis of the qualifications and abilities needed

    for the work to be performed.

    HUL respect the dignity of the individual and the right of employees to

    freedom of association.

    HUL will maintain good communications with employees through company

    based information and consultation procedures.

    Consumers

    HUL is committed to providing branded products and services which consistently offer

    value in terms of price and quality, and which are safe for their intended use. Products

    and services will be accurately and properly labelled, advertised and communicated.

    The Environment

    HUL is committed to making continuous improvements in the management of their

    environmental impact and to the longer-term goal of developing a sustainable business.

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    HUL will work in partnership with others to promote environmental care, increase

    understanding of environmental issues and disseminate good practice.

    InnovationIn their scientific innovation to meet consumer needs they will respect the concerns of

    their consumers and of society. They will work on the basis of sound science, applying

    rigorous standards of product safety.

    Business Integrity

    HUL does not give or receive, whether directly or indirectly, bribes or other improper

    advantages for business or financial gain. No employee may offer, give or receive any

    gift or payment which is, or may be construed as being, a bribe. Any demand for, or offer

    of, a bribe must be rejected immediately and reported to management.

    HUL accounting records and supporting documents must accurately describe and reflect

    the nature of the underlying transactions. No undisclosed or unrecorded account, fund or

    asset will be established or maintained.

    Conflicts of Interests

    All HUL employees are expected to avoid personal activities and financial interests

    which could conflict with their responsibilities to the company.

    HUL employees must not seek gain for themselves or others through misuse of their

    positions.

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    Compliance Monitoring Reporting

    Compliance with these principles is an essential element in their business success. The

    Unilever Board is responsible for ensuring these principles are communicated to, andunderstood and observed by, all employees.

    Day-to-day responsibility is delegated to the senior management of the regions and

    operating companies. They are responsible for implementing these principles, if

    necessary through more detailed guidance tailored to local needs.

    Assurance of compliance is given and monitored each year. Compliance with the Code is

    subject to review by the Board supported by the Audit Committee of the Board and the

    Corporate Risk Committee.

    The Board of Unilever expects employees to bring to their attention, or to that of senior

    management, any breach or suspected breach of these principles.

    Provision has been made for employees to be able to report in confidence and no

    employee will suffer as a consequence of doing so.

    In this Code the expressions 'Unilever' and 'Unilever companies' are used for convenience

    and mean the Unilever Group of companies comprising Unilever N.V., Unilever PLC and

    their respective subsidiary companies. The Board of Unilever means the Directors of

    Unilever N.V. and Unilever PLC. ref:THE NEWS

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    FMCG Market (HLL Categories)Growth%

    6.7

    3.4

    -2.5-1.1

    -4

    -2

    0

    2

    4

    6

    8

    00 01 02 03

    18

    FMCG MarketsSlowdown in growth & then 2 years of decline

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    Pricing action in 2008:

    Price reduction

    Price reduction (Bottles) & Value improvement (Sachets)

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    Investment Behind Brands

    Innovation & Superior Quality

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    Family safe Petalsoft Water & effort saving Quick wash - 50% No mud Rin

    Advance from germs

    Perfect Radiance 5 in 1 hair Total Care Whiter teeth Fresher breath

    health benefits

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    Current Market Context

    Actions

    Pricing

    Laundry : Price Reduction

    Shampoos: Value Improvement & Lower Price Points

    Toothpaste: Value Corrections & SKU rationalization

    Investments behind brands

    Innovations

    Quality

    Higher A&P

    Corrective actions in processed

    Processed Foods

    Corrective actions

    Phased stock reduction

    Withdrawl of 03 innovation

    Defocus of Atta in unviable geographies

    Sales decline of 26% arising from above actions

    Market shares held / improved

    23

    Growth%

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    24

    BRANDS

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    Research and Innovation Centers

    Since most new products and processes are developed in these Units, certain additional

    responsibilities devolve on them to ensure implementation of the Environment Policy of

    the company. In addition to the Unit Head's responsibilities outlined above, the heads of

    these units will:

    Ensure that a formal and systematic risk assessment exercise is undertaken during

    the process/product development stage with specific reference to environmental

    impact.

    Transfer technology to the pilot plant and main production through a properly

    documented process specification which will clearly define environmental impact

    and risks associated with processes, products, raw material and finished product

    handling, transport and storage.

    Ensure that treatment techniques are developed for any wastes generated as a

    result of the new product/process and is incorporated into the process

    specifications.

    QUALITY POLICY:

    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.

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    The company is committed to respond creatively and competitively to the changing needs

    and aspirations of their consumers through relentless pursuit of technological excellence,

    innovation and quality management across their businesses, and offer superior quality

    products and services that are appropriate to the various price points in the market as well

    as to their commitment to building shareholder value.

    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 tomonitor 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 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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    MARKET STRATEGIES

    Consumer satisfaction

    Indira is 20 years old, a tribal woman at Kondegaon village in Bastar district. She is just

    back from the nearby jungles, collecting firewood. After attending to her baby son, she

    will go to the village well to take a quick wash. Yesterday her husband brought her a

    white soap, with pink petals in it. Indira had requested him to buy one, for the festival

    later this evening.

    Home to over 700 million people, rural India comprises not only over 70% of India's

    billion-strong population, but also over 12% of the world's population. The rural

    population already accounts for substantial consumption of Fast Moving Consumer

    Goods and also consumer durables. About 50% of the sales of soaps & detergents are

    generated in rural India. Similarly, almost half the demand for black & white television

    sets, pressure cookers, table fans, sewing machines also comes from there.

    Cost management:

    But the potential is even larger, both in terms of consumption and penetration. The fact

    that 70% of the population accounts for only 50% of even relatively well-penetrated

    categories, like soaps & detergents, indicates the enormous scope of consumption-led

    growth in these categories. In categories, which are relatively less penetrated, like

    personal products, rural India offers an even bigger growth opportunity through greater

    penetration and then consumption. For example only three out of 10 consumers in rural

    markets use shampoo or skin care products. Therefore growth in such categories will

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    emerge, as more consumers purchase these products, and then continue to use them

    regularly.

    Hindustan Lever has taken many initiatives over the decades to create markets in the rural

    hinterlands. By marketing relevant products, at affordable prices.

    At the same time, if products have to come up the order in the rural purchase hierarchy,

    they have to be affordable. If rural India today accounts for about half of detergents sales,

    it is because HUL has developed low-cost value-for-money branded products, like

    Wheel. The company has also taken initiatives to create markets even for apparently

    premium products, by offering them in pack sizes, like sachets, whose unit prices are

    within the reach of rural consumers. For example, initiated in the 1980s, sachets (Rs.2,

    Re.1, or 50 paise) today constitute about 55% of Hindustan Lever's shampoo sales. With

    media reach gradually increasing, rural consumers today, where the media has its

    footprints, share the same aspirations with their urban counterparts. HUL has responded

    to the trend with low unit price packs of even other products - Lux at Rs.5, Lifebuoy at

    Rs.2, Surf Excel sachet at Rs.1.50, Pond's Talc at Rs.5, Pepsodent toothpaste at Rs. 5,

    Fair & Lovely Skin Cream at Rs.5, Pond's Cold Cream at Rs.5, Brooke Bond Taaza tea at

    Rs.5.

    Other marketing strategies:

    For decades now, Hindustan Lever has also taken initiatives to circumvent the limitation

    in communication channels, by innovatively leveraging non-conventional media. Among

    them are wall paintings, cinema vans, weekly markets (haat), fairs and festivals. Given

    the rural consumer's fascination for cinema, the cinema vans show popular movies,

    interspersed with products advertisements. Weekly markets, fairs and festivals are parts

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    and parcel of rural life. The occasions are used to demonstrate product benefits and also

    sell such products. Such demonstrations have played a significant role in creating, for

    example, the detergents market in rural India. In recent times, such demonstrations are

    being deployed to illustrate how visible clean is not hygienic clean, and how using soap is

    essential to prevent easily avoidable infections.

    demonstrations. The project has helped eliminate barriers to trial, and has strengthened

    salience of both particular categories and brands. Similarly in 2002, Hindustan Lever has

    launched a similar large-scale direct contact, called Lifebuoy Swasthya Chetana, which

    already covers 70 million people in 18,000 villages of 8 states. The project is intended at

    generating awareness about good health and hygiene practices, and specifically how a

    simple habit of washing hands is essential to maintaining good health. The initiative will

    involve interaction with students and senior citizens, who act as change agents.

    Availability of HULs Product:

    Generating awareness pays dividends only when steps are taken to ensure constant

    availability of products. In rural India particularly, availability determines volumes and

    market share, because the consumer usually purchases what is available at the outlet,

    influenced very largely by the retailer.

    Therefore, over the decades, Hindustan Lever has progressively strengthened its

    distribution reach in rural India, which today has about 33 lakh outlets. Direct rural

    distribution in Hindustan Lever began with the coverage of villages adjacent to small

    towns. The company's stockists in these towns were made to use their infrastructure to

    distribute products to outlets in these villages. But this distribution mode could only be

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    extended to villages connected with motorable roads, and it could cover about 25% of the

    rural population by 1995..

    HUL has in the recent past established a common distribution system in rural areas for all

    its products. Given the number of brands and their packs the rural retailer usually

    requires, one HUL representative can take all the products from the company portfolio

    that he needs.

    Over time, Hindustan Lever will further strengthen its rural distribution through mutually

    beneficial alliances with rural Self Help Groups (SHGs). Over the last five years,

    financial institutions, NGOs and government organisations are working closely to

    establish SHGs, whose objective is to alleviate poverty through sustainable income-

    generating activities. Since 2001, Hindustan Lever is implementing Project Shakti,

    whereby SHGs are being offered the option of distributing relevant products of the

    company as a sustainable income-generating activity.

    HUL's vision for Project Shakti is to scale it up across the country by 2005, creating about 25000 Shakti

    entrepreneurs, covering 100,000 villages, and touching the lives of 100 million rural consumers. Begun

    with 50 groups in Nalgonda district of Andhra Pradesh, with the support of local authorities, the project has

    been extended, as of now, to about 50,000 villages in 12 states. A typical Shakti entrepreneur conducts

    business of around Rs.10,000 - Rs 15,000 per month, which gives her an income of about Rs 700 - Rs.1000

    per month on a sustainable basis. As most of these women are from below the poverty line, and live in

    extremely small villages (less than 2000 population), this earning is very significant, and is almost double

    of their past household income. The full benefit of Project Shakti will be realised after some years.

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    HINDUSTAN UNILEVER LIMITED

    DECEMBER QUARTER 2008 RESULTS

    Total Sales grow by 14.4%; FMCG Sales growth at 15.8%

    HPC and Foods grow by 17% and 9% respectively; Broad based growth across

    categories

    PBIT grows 13.5%; Net Profit increases by 56%

    EPS for 2008 grows 17.6%; Final Dividend Rs 2.50 per share of Re 1/- each; Total

    Dividend Rs 5.00 per share for 2008

    Mumbai, February 14, 2009: Hindustan Unilever Limited (HUL) announced its results

    for December Quarter 2008. Growth momentum achieved in the last three quarters has

    been sustained with total sales growing by 14.4%. Domestic FMCG sales were higher by15.8% with both Home and Personal Care (HPC) and Foods performing well.

    HPC business grew by 17.3% driven by strong performance in all categories. Significant

    sales growth was achieved in the highly competitive categories of Laundry and Shampoo.

    Soaps recorded good growth, with Lux growing handsomely reflecting in market share

    gains. All the brands in Skin category maintained their strong performance leading to a

    double digit growth for the category. Consumer relevant innovations continue to drive

    off-take and key innovations during the quarter include the re-launch of Thick and

    Strong Sunsilk Pink, Lux variants for the 75-year celebrations, and the national launch

    of Jasmine Fresh Rin Advanced Powder.

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    HUL TRANSFERS TEA ESTATES INDIA TO MAXWELL GOLDEN TEA

    PRIVATE LIMITED

    Mumbai, March 01, 2006: Hindustan Unilever Limited (HUL) has transferred its entire

    shareholding in its 100% subsidiary Tea Estates India Limited (TEIL) to Maxwell Golden

    Tea Private Limited (MGT), a Woodbriar Group company on March 1, 2006. TEIL owns

    8 tea estates and 6 factories for processing tea in the high-yielding belt of Tamilnadu with

    an average annual output of approx. 10,500 metric tons.

    The acquisition of TEIL by Woodbriar Group will provide scale and bring in synergy benefits to Woodbriar Group, as a large portion of TEIL gardens are contiguous to the

    existing tea gardens of Woodbriar Group. Canara Bank, Madurai Circle has funded the

    debt component to Woodbriar Group for this acquisition.

    With this disposal of shareholding in TEIL, HUL has completed its exit from its tea

    plantations business both in South India and Assam. It may be recalled that HUL had sold

    its interests in Rossell Industries Limited and Doom Dooma Tea Company Limited in

    Assam during the last 12 months.

    About HUL:

    HUL is India's largest Fast Moving Consumer Goods Company, touching the lives of two

    out of three Indians. HUL's mission is to "add vitality to life" through its presence in over

    20 distinct categories in Home & Personal Care Products and Foods & Beverages. The

    company meets everyday needs for nutrition, hygiene, and personal care, with brands that

    help people feel good, look good and get more out of life. For more information visit

    www.HUL.com

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    COMPETITORS

    The Procter & Gamble Company Company Profile

    The Procter & Gamble Company (P&G) is a brand behemoth. The world's #1

    maker of household products courts market share and billion-dollar brands. P&G's

    products fall into three categories: global beauty care; global health, baby, and

    family care; and global household care. It also makes pet food and water filters and

    produces soap operas (As the World Turns). More than 20 of P&G's brands are

    billion-dollar sellers (including Actonel, Always/Whisper, Bounty, Charmin, Crest,

    Downy/Lenor, Folgers, Iams, Olay, Pampers, Pantene, Pringles, Tide, and Wella).

    Acquisitive P&G bought Clairol in 2001 and a majority of Wella in 2003. Its

    purchase of Gillette in late 2005 was its biggest buy in company history.

    Financial HighlightsFiscal Year End: JuneRevenue (2005): 56741.00 MRevenue Growth (1 yr): 10.40%Employees (2005): 110,000Employee Growth (1 yr): 0.00%

    RESEARCH METHODOLOGY

    The section includes the overall research design, the sampling procedure, the data

    collection method, the field method, and analysis and procedure.

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    RESEARCH DESIGN

    For this research project exploratory method is using

    DATA COLLECTION METHOD

    The data collect for the research can be classified as primary data and secondary data.

    Primary data is by visiting existing customer and expected customer of Hindustan

    Unilever Limited and making them fill up the questionnaire. Secondary data is from

    internet, books, magazine etc.

    RESEARCH INSTRUMENT

    The instrument use for data collection is structured questionnaire. Question is open and

    close ended depending upon the information that needed to be elicited. I am also using

    the scaling technique to assess the attitude of the customer.

    SAMPLING PLAN

    Keeping all the constrains in mind a sample size of 100 people .The sampling procedure is systematic

    sampling.

    SCOPE

    The Indian FMCG market currently appears to be at a crossroads, and HUL are

    attempting to change customer perceptions of their brands and where specific buying

    motivations appear to be replacing generalities.

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    This meanwhile, is quite unlike the west where buyers consider aesthetics, comfort and

    safety, not necessarily in that order, before finalising a purchase. Its smarter to think

    about emotions and attitudes, if marketers are to do a better job of marrying what a HUL

    offers to the consumers image of the offerings. Another important outcome of the

    research is the believability of the claims. Most of the claims are realistic and easy to

    understand. Most of the people dont understand the quality claims by HUL.

    The mindset of the Indian consumer is such that he is delighted if he buys a pen a little

    cheaper than his neighbour. Things are, however, slowly changing and customers at the

    upper end of the market are now ready to pay more for more. I hope that this approach

    will soon enter the new era, maybe not with the same intensity .

    Success will largely be determined to the extent a company can differentiate

    itself in terms of intangibles that go with a Product. Thus, success could well hinge on

    the best of bundle of services that HUL provides.HUL grew from zero to the 2,268

    Million $, mark and the number One FMCG company in India this year. Looking at the

    present scenario it can be said that though there is lot of competition in the market but

    HUL is picking up well. The landmark achievement comes in 74 years in India after

    clinching its first overseas sale.

    FINDINGS, DATA ANALYSIS AND CONCLUSIONS WHEN

    COMPARED WITH PROCTER AND GAMBLE LTD .

    Findings

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    On the basis of research, we found that there is a nominal difference in the efficiency of

    Hindustan leaver limited. vis--vis Procter and Gamble Ltd. I have reached to this

    conclusion on the basis of following findings. They are as follows.

    Product line

    Hindustan leaver limited

    HUL Home & Personnel Care

    > In personal Wash they have Lux , Lifebuoy, Liril, Hamam, Breeze, Dove, Pears and

    Rexona .

    In Laundry they have Surf Excel, Rin and Wheel.

    In skin care their brands are Fair N Lovely and Ponds.

    In hair Care they have Sunsilk Naturals and Clinic All clear.

    In Oral Care their brands are Pepsodent and Close-up.

    In Deodorants they have Axe and Rexona.

    In Colour Cosmetics they have Lakeme.

    In Ayurvedic Personal And Health Care they have Ayush.

    FOODS

    In tea they have the brand name brook bond and lipton.

    In coffee they have bru.

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    In foods they have kissan and kinnor annpuran.

    In ice creams they have the kwality walls.

    WATER

    Hindustan Unilever Limited has launched pueit, the most advanced in home

    water purifier in the world.

    Procter and Gamble P&G Hygiene and Health care ltd. markets several leading brands:

    Whisper sanitary napkins in the Feminine Hygiene category; Health care products such as

    Vicks VapoRub, vicks action 500, Vicks Cough Drops, Vicks Inhaler; skin care and

    cosmetic products viz. Old Spice.

    P&G Home Products Ltd. markets several leading brands. In Fabric Care P&G has two

    of its world leading detergents Tide and Ariel, in Hair Care they have Pantene Pro V,

    Head & Shoulders and Rejoice. In Baby Care they have Pampers.

    CONCLUSION- As Hindustan Unilever Limited has more brands in its basket then

    Procter and gamble so it is more close to common man and touching his or her daily life

    in a more comprehensive manner.

    DEALERS

    Hindustan leaver limited While choosing the dealers HUL mainly emphasizes on the

    market potential of that area, dealers financial position, and dealers back ground

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    (previous business), present business, goodwill and risk taking capabilities ,by the good

    responsibility of the dealer.

    Procter and Gamble there is no difference as such in the process of selection of dealers

    in Procter and Gamble also. Like HUL, P&G also considers dealers financial position;

    present business, goodwill and risk taking capabilities.

    Conclusion: Dealers of HUL are satisfied by the companies support in there sales

    because the company provides them with various schemes and discounts, whereas

    satisfaction of P&G dealers lies in good promotional activities, advertisement and theflexibility that the company provides them. According to the senior officials of P&G it

    was found that its a volume based company, hence all the above stated parameters helps

    the dealer to attract more and more customers.

    MODE OF TRANSPORTATION

    Hindustan leaver limited; HUL uses modified trucks and rails to deliver the products

    from various production sites to the dealers. They are using new state of the art

    technology so that they can even track every single bottle of shampoo. Transportation

    cost is shared by HUL and the dealer.

    Procter and Gamble P&G is also using road and railway transportation system to

    deliver product from various production sites to the dealers. They are also using latest

    Information Technology to track there consignment whose backend is managed by

    infosys. Each dealer has to keep the Good Receipt Note (GRN) number and report of the

    whole items of delivered products. Transportation cost is paid by P&G.

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    Conclusion: Both P&G and HUL uses advanced tracking technology to track the goods

    and both companies use railways and roadways for transporting there products. In HUL

    transportation cost is shared by HUL and the dealer, where as at P&G, transportation cost

    is paid by P&G.

    FLEXIBILITY

    Hindustan leaver limited As far as flexibility is concerned; our group found that HUL

    provides more flexibility in terms of delivery of produce. HUL has there own warehouses

    in every state and if the dealer orders more , he is supplied with the products in time.

    Procter and Gamble As far as flexibility is concerned; our group found that P&G does

    not provides more flexibility in terms of delivery of produce and in taking order from

    dealers.

    Conclusion: our group has found that Dealers of HUL are more satisfied than the dealers

    of P&G and therefore HUL is a step ahead in terms of flexibility of placing orders and

    accepting orders from the dealers.

    DISTRIBUTION CHANNEL STRUCTURE

    Hindustan Unilever limited- Hindustan Unilever Limited channel structures consist of

    whole seller, mass retailers, rural and modern trade. Their new approach to distribution is

    holistic and seeks a three way convergence of product availability brand communication

    and brand experience. They are reinventing distributioncreating new channels and

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    redefining the way current channels are serviced. They are building new capabilities in

    training the large number of people involved in these initiatives.

    Procter and gamble- Procter and gambles channel structure also have whole sellers,

    mass retailers. They are revamping the companys distribution system using efficient

    consumer response {E C R} principles. The new distribution system has given the

    company considerable cost and process efficiencies while significantly availability and

    visibility of the companys product in the stores.

    Conclusion- Our group has found that H.L.L. has more effective and efficientdistribution network as compared to P & G, which increases the availability and presence

    of HUL product. HUL is also given emphasis on penetrating the rural market as well.

    DEALING WITH UNSOLD & DAMAGED MERCHANDISE

    Hindustan Unilever Limited- It depends on the condition and type of the product. If

    company feels that it is not the fault of the dealer then company would return it, unsold

    products are mostly taken back by HUL

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    Procter And Gamble- P & G replaces the damaged product with the new one, it means

    that the damaged product are replaced by new product.

    Conclusion- Our group has found that both the companies take back the unsold product

    however P & G is more flexible in returning the damaged product as compared to the

    HUL. Hence P & G is more flexible here.

    PERFORMANCE APPRAISAL SYSTEM

    Hindustan Unilever Limited- The performance appraisal system in Hindustan Unilever

    Limited is done under the supervisory of the Appraisal supervisor. The supervisor keep

    track of the performance of the employees and based on their performance he choose the

    right method of performance appraisal. The main method of performance appraisal that

    have been adopted by Hindustan Unilever Limited are 360 degree appraisal and

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    supervisory appraisal methods. it is done as an early exercise and performance appraisal

    parameter is the past performance of the employees.

    Procter And Gamble- the performance appraisal system in Procter and gamble is also

    done under the supervisory officer and almost same method are used as in the Hindustan

    Unilever Limited .

    Conclusion- the conclusion that our group has found that there is hardly any differences

    is the performance appraisal methods in both the companies .both the companies are

    taking almost the same measures and same parameters for performance appraisal ,however both the company were not willing to disclosed any changes brought in

    performance appraisal system during the past five years .both of the companies said that

    there have been change in some areas and which has shown positive results, but not

    willing to give any reasons and what changes have been brought.

    TARGETS

    Hindustan Unilever Limited : HUL has different channel members with specified

    targets and they are intended to increase sales, HUL has also made changes in channel

    members during 2001-2006 to increase sales of the company. Every channel member has

    to fulfill there given targets, channel members expect the company of ROI. Every

    channel member gets credit period of two weeks. There was also change in performance

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    appraisal system during 2001-2006 to improve sales. HUL has also made changes in

    commercial terms intended to increase the sales in different channels and also to increase

    profit margins to company.

    Procter And Gamble- P&G also has different channel members with specified targets

    and they are intended to increase sales .P&G also made changes in channel members

    during 2001-2006 to increase sales of the company. The channel members expect ROI

    depending on there knowledge and on there performance to. Channel members get credit

    period of 30 days. Payment terms of P&G are also flexible to the channel members and

    P&G also has flexible payment terms P&G also offers many discounts to these channel

    members. P&G has made many changes to there commercial terms during 2001-2006 to

    increase sales.

    Conclusion- Both HUL and P&G are flexible to channel members, but HUL runs some

    monopoly over the market by offering a credit period of only two weeks where as P&G

    offers credit period of 30 days. HUL also sets targets to there channel members and

    provides very less margins to dealers compared to P&G.

    SALES FUNCTIONING

    Hindustan Unilever Limited : HUL is emphasizing on rural areas through project

    Shakti these days and sales also have been increased and HUL does not have any sales

    outlets HUL assigns sales territory to there sales persons according to there skill and

    experience and assigns targets to them. HUL adopts on the job and off the job training

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    system to there sales force it is emphasized on improving skill and experience of the sales

    personnel. Sales personnel are motivated through incentives and promotions.

    Procter And Gamble: P&G has increased the number of outlets in the country and the

    population in the area also increased and there is no effect on sales. P&G sets targets to

    there sales force on the basis of increase or decrease in demand and also according to the

    previous sales , sales territories are assigned according to the capabilities of the sales

    personnel, responsibility of the sales personnel is to clarify the doubts of the customer

    and make sales of the product. P&G trains their sales force by on the job training and

    training process is emphasized on skill and experience, P&G has also brought many

    changes in the training system that has affected its sales too. P&G motivates their sales

    force by providing them with targets and incentives.

    Conclusion; Both P&G and HUL trains their sales force and has a good performance

    appraisal system, P&G does appraisal on a monthly basis depending on increase and

    decrease of sales where as HUL does it once in a year.

    RECOMMENDATIONS

    Both the companies having good market share in India and it keep on increasing. Both

    the co. i.e. HUL and P&G should open exclusive shop. HUL is already having exclusive

    shop in Mumbai called SANGAM STORE. But it is only in India so it should be

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    Physical attributes.

    Brand Image.

    Customer Specific Details.

    In any correspondence with the customers the message should be sent in these

    components only to have the maximum benefit from the advertisement. Also these

    components should be dealt with independently. The basic need of the customer need to

    be addressed which is actually not much expensive and better quality.

    HUL sales growth in june 2004 was decreased due to the problem with promotion and

    pricing. Although being the most competitive product on the basis of the Market

    Operating Price (MOP), the shampoos are still not selling much. This is perhaps due to

    the bargaining stress on the customer and the weak push given by the dealer to the

    particular item, when actually it should be sold like a high volume product.

    Another serious suggestion is that HUL must give good attention to their all the products

    rice and all are not getting much attention. The dealers dont provide much support to the

    customers in making them understand the real Quality behind them. Either, the technical

    details should be presented in a clearer manner or the dealers need to be educated

    properly.

    LIMITATIONS

    Everything in this world has its own advantages and disadvantages which shows nothing

    is perfect.

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    Following are the problems faced but its a part of game:

    1. TIME CONSUMING: It is very much obvious that it is a time consuming process. So

    much time has been spent for this purpose.

    2. LOW PARTICIPATION: Obviously many respondents have not participated in this

    and have also created some problems which simply shows that they were not

    interested.

    3. BIASNESS: Sometimes interested customers were also biased so the collected figures

    involve both positive and negative figures.

    4. It does not cover all the aspects of the company.

    5. SUBJECTIVE: This project only tells you what it is all about.

    BIBLIOGRAPHY

    1. The Times of India and Hindustan Times

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    2. The Economic Times

    3. Companys brochure

    4. www.google.co.in

    5. www.HUL.com

    ANNEXURE

    SPECIMEN

    CUSTOMER SURVEY QUESTIONNAIRE

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    Name

    Age

    Address

    Q1. How many members are there in your family?

    Q2. Have you ever heard of HUL (Hindustan Unilever Limited )?

    YES ______ NO ______

    If Yes, from where?

    Newspaper Magazines

    Television Others _______

    Q3. Are you using any HUL product?

    YES NO

    Q4. If Yes, then are you satisfied?

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    YES NO

    Q5. If No, then reason being

    Poor quality High prices

    No services Others

    Q6. Which brand do you use in the following categories :

    Personal Wash

    Lux __________ Breeze ___________

    Dove __________ Others ___________

    Laundary

    Surf Excel _______ Rin ________

    Wheel Others

    Skin Care

    Fair&Lovely ________ Ponds ________

    Sunslik Naturals ________ Others ________

    Oral Care

    Pepsodent ________ Close-up ________

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    Others ________

    Deodorants

    Axe ________ Lakme ________

    Rexona ________

    Colour Cosmetics

    Lakme ________ Others ________

    Q7. What Recommendations or suggestions would you like to give for

    improvement of our products?

    RETAILER SURVEY QUESTIONNAIRE

    1. Do you keep products of Parle in your shop? ( please tick mark on the

    appropriate answer)

    a).Yes b). No .

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    (If the answer is yes then go to question number: 3 )

    2. Why dont you keep the products of Parle in your shop or why did you stop

    keeping its products?

    Yes No

    a). erratic supply

    b). lack of demand

    c). low margin

    d). no supplier

    e). dont know about the company

    3. Which products of HUL do you keep?

    Personal Wash

    Lux __________ Breeze ___________

    Dove __________ Others ___________

    Laundry

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    Surf Excel Rin ________

    Wheel Others

    Skin Care

    Fair &Lovely ________ Ponds ________

    Sunslik Naturals ________ Others ________

    Oral Care

    Pepsodent ________ Close-up ________ Others ________

    Deodorants

    Axe ________ Lakme ________

    Rexona ________

    Colour Cosmetics

    Lakme ________ Others ________

    4. What is the sales/demand of the product?

    1. Very High

    2. High

    3. Average

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    4. Rarely

    5. Very Rarely

    6. Never

    5. From whom do you purchase your product?

    1). Distributor 2). Dealer

    3). Agency

    4). Wholesaler

    6. How do you rate the delivery process by the dealer?

    1. Excellent

    2. Above Average

    3. Average

    4. Below Average

    5. Extremely Poor

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    7. How many dealers are there in the district?

    a).One

    b)Two.

    c)Three.

    d)More than three.

    8. Which vehicle do they mainly use for delivery?

    1). Two wheeler

    a). scooters__ , b). motorbike__.

    2) Three wheeler

    3) Four wheeler

    a) van__ ,b) truck__,c) others__.

    13. What are the other schemes and incentives offered by them?

    ___________________________________________________

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    ___________________________________________________.

    14. What improvements would you like to have in the distribution process?

    _________________________________________________

    _________________________________________________

    PERSONAL DETAILS:

    Name: ___________________________________________

    Address: _________________________________________

    Cont. No.: ________________________________________

    Signature: ________________________________________


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