Hul Final Report 23

Forwarding

I have great pleasure in forwarding this project report of “Rajkamal Paroha” entitled “competitive analysis of FROOTI and it’s competitor & analyzing the retailers behavior towards the company products” which was carried out under my supervision and guidance for the partial fulfillment of his Post Graduation Diploma in management under “CEREBRAL HEIGHTS INSTITUTE OF BUSINESS STUDIES” .AICTE approved.” He had carried out this work during the period of 05th may 2010 to 04th July 2010 at “Parle agro Pvt Ltd Indore.” he has learnt about various steps of Marketing along with its supply chain management.

His conduct was good during stay with us.I wish all success in his future endeavors.

…………………………….

Mr. Tapan Sarangi

Business head

M.P & C.G

CHIMC(CH INSTITUTE OF MANAGEMENT AND

COMMUNICATION)

PGDMPost Graduate Diploma in Management

Batch- 3rd

A SUMMER PROJECT REPORT

ON

“General training at Hindustan unilever ltd. For selling vending machine and unilever

food solutions products in Indore”

For

HINDUSTAN UNILEVER PVT. LTD.

Submitted to:

Faculty Guidance: Company Guidance: Ms. Neha yarde Mr. Raj kumar naveen

Distributor

Hindustan Unilever Ltd.

Submitted by:

Swati dwivedi

ACKNOWLEDGEMENT

A summer project is a golden opportunity for learning and self development. I consider myself very lucky and honored to have so many wonderful people lead me through in completion of this project.

I wish to express my indebted gratitude and special thanks to Mr. Rajkumar Naveen-TSO Hindustan unilever. Ltd, Indore (Madhya Pradesh) who in spite of being extraordinarily busy with her/his duties, took time out to hear, guide and keep me on the correct path and allowing me to carry out my industrial project work at their esteemed organization and extending

during the training. I do not know where I would have been without him. A humble ‘Thank

you’ Sir.

I express my heartful thanks to Mr. Akhil bharadia distributor, prashant Jain distributor of HUL ltd for taking part in useful decision & giving necessary advices and guidance and arranged all facilities to make life easier. I choose this moment to acknowledge their contribution gratefully.

I also wish to express my indebted gratitude and special thanks to Prof. Grish Bhatia for guiding me for completing the project.

Place: Indore Swati dwivedi

Date PGDM-2011-2013

2Competitive analysis of HUL vending machines & unilever food solutions and its competitors & analyzing the consumer behavior towards the company’s products”

Declaration

I hereby declare that project Titled “Competitive analysis of HUL vending & UFS products and its competitor & understanding the consumer behaviors towards the company products” is an original piece of research work carried out by me under the guidance and supervision of Mr. Akhil bharadia The information has been collected from genuine & authentic sources. The work has been submitted in partial fulfillment of the requirement of PGDM to our college.

Place: Signature:

……………………..

Date: Swati Dwivedi

PGDM-2011-2013


Preface

Progress is a continuous process. It is relative and absolute. We cannot stop at a certain destination and declare that target has been achieved and we need not to go further.

In this new are all the countries & their companies are trying their best to improve economic growth. This trend has created a very complex & competitive environment in the field of business, trend & win the race a new system of management is much needed. To fulfill this need a new field of modern science has developed very fast i.e. Master of Business Management. In this curriculum there are several phases, which have to be covered & compelled properly.

At the completion of the third trimester of PGDM we got opportunity to provide them particular knowledge about every aspect of market. It could be in related fields’ viz. Human Resource Management, Marketing or Finance as per their specialization in the course. It is important because it provides exposure to students about the practical knowledge of the field, which is very essential beside the theoretical knowledge.

The experience that I have gathered during this period has certainly provided me with an orientation which, I believe, will help me to shoulder my assignment successfully in near future. During this period, I have collected all the information of “General training at Hindustan unilever ltd. For selling vending machine and unilever food solutions products in Indore” through primary data which were available at Indore.

On the basis of my training program, I have tried my best to arrange my work in symmetric way. However to cover the detailed information in such a short period was not possible. Despite the inherent shortcomings of the study, a genuine attempt was made on my part see that the study was carried out in the right respective.

Place: Signature: ………………………………

Date: Name of the student: Swati Dwivedi


PGDM-2011-2013

CERTIFICATE

This is to certify that the project entitled “Competitive analysis of HUL vending & UFS and

its competitor & understanding the retailers behaviors towards the company products” has

been carried out by Swati Dwivedi under my guidance in partial fulfillment of the Post

graduate Diploma of management from CH Institute of Business Studies.

Name of the student- Swati Dwivedi

Date – Signature & Seal

Place – Indore ………………………

Mr. Akhil bharadia

Distributor

Hindustan unilever. Ltd. Indore


TABLE OF CONTENTS

1. Chapter no. 1 7-10

Introduction Of study …………………………………………………. 8

Scope of study ………………………………………………….. 8

Significance of study………………………………………………….. 9

Objective of study ………………………………………………….. 9

2. Chapter no. 2 10-34 Introduction of industry Company Profile …………………………………………………. 10 Brief introduction of vending machines & unilever food

solutions……………….. 16 Product mix & product line ……………………………………….. 21 Marketing activities & Promotional activities…………………….. 23 Marketing strategies………………………………………………...24 Market Size, Growth, & Demand…………………………………...25 Competitors of FROOTI ………………………………………….. .28


Aim of Research ……………………………………………… 35 Research methodology ……………………………………….. 36 Statistical tools for Analysis ………………………………….. 44 Sample Profile ………………………………………………… 48 Limitation of Survey ………………………………………….. 48



Data Analysis …………………………………………….. 49 SWOT Analysis ………………………………………….. 71


Finding and interpretation…………………. ………….. 73

6. Chapter no. 6 81-82 Recommendation…………………………………………77

Bibliography ……………………………………………. 78 Annexure (Questioner)


Chapter - 1 Introduction of study

This study is based on the selling of products of the vending and unilever food solutions for the Hindustan unilever. Ltd. in Indore. Today there is a growing health and wellness consciousness among consumers and an increasing importance given to fitness and healthy lifestyle choices. Changing work and lifestyle habits leave less time for home cooking and therefore spur demand for convenience and ‘complete nutrition’ from meal replacements. There is a greater inclination to ‘self-care’ rather than ‘medicate’, a greater awareness of the ‘functional’. This study also reflects the market position through consumer’s feedback. HUL being the leader in the FMCG industry, has always been a dream company for marketers and having got an opportunity to do summer internship in such a reputed organization for marketing student like me proved to be an obvious choice.

Designated in HUL vending solutions (HVS) and unilever food solutions (UFS). I worked in explored and unexplored market of Institutional business (IBS) i.e. INDORE respectively with the primary objective of “General training at Hindustan unilever ltd. For selling vending machine and unilever food solutions products in Indore "Having got an opportunity to utilize my theoretical knowledge of B2C marketing with practical application in field, this topic gave me full scope to understand the market and more importantly understand the behavior of the large corporate customers.

Scope of Study -

This study focuses on the selling and analyze of customer for products so scope of this study is wider for some companies or researchers who are looking for understanding the customer reaction or consumer feedback for vending machines & food solution

Selling has been carried out in the following developed markets in Indore –

Vijay Nagar Scheme no. 54 & 78, Mahalaxmi Nagar, Old Palasiya, New Palasiya, Tilak Nagar, Geeta bhawan, Vandna Nagar, Chavani, Sarvate Bas Stand, Shukliya,Heera Nagar, Patni Pura, Sapna Sangeeta, Mahu Naka, Dhar Road Madik Bag, Rajwada, Sindhi Colony Nagar Niagam Area, Bada Ganpati, Malhar Ganj, Aero drum Road, Vijasen Mata Mandir Road, LIG,MIG, HIG Area. Etc

Significances of the Study-


The major significance of study is that it is helpful to HINDUSTAN UNILEVER PVT. LTD. for General training at Hindustan unilever ltd. For selling vending machine and unilever food solutions products in Indore. As the one part of this study is based on the consumers consumes so it is directly beneficial to the organization for knowing the consumers problems and suggestion. Competitive comparison for the vending machines & food solution can be a big beneficial part for the organization because it provides the briefed & perfect information about the competitors. This study is also helpful to other key players of juicy market. Moreover, it provides a source of information on the latest market developments and trends that can be useful for a number of individuals and organizations, including importers and consumers, in developed market.

Objective of Study

The main objective of the study is to “competitive analysis of HUNDUSTAN VNILEVER and its competitor & analyzing the consumer behavior towards the company products” through market research & data collection.

To evaluate the major competitors of vending machines & food solution in the market.

To determine there is any relation between consumer’s price level of its product

Identify market opportunities for HUL products in Indore.

To know the satisfaction level of customers about prices of vending machine & food

solution products

To know the how to improvement of advertising and campaign of HUL products in

the market.

Analyze the current situation of demand and supply of vending & food solutions and

its competitors.

INTRODUCTION TO INDUSTRY Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company with a heritage of over 75 years in India and touches the lives of two out of three Indians.


HUL works to create a better future every day and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others.

With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Close-up, Axe, Brooke Bond, Bru, Knorr, Kissan, Quality Wall’s and Pureit.

Hindustan Unilever Limited considers quality as one of the principal strategic objectives to guarantee its growth and leadership in the markets in which it operates. The company is committed to respond creatively and competitively to the changing needs and aspirations of our consumers through relentless pursuit of technological excellence, innovation and qualityManagement across our businesses, and offer superior quality products and services that is appropriate to the various price points in the market as well as to our commitment to building shareholder value. The company recognizes that its employees are the primary source of success in its operations and is committed to training and providing them the necessary tools and techniques as well as empowering them to ensure broad base compliance of this policy in the organization at all levels. The company is committed to fulfill its legal and statutory obligations and international standards of product safety and hygiene and will not knowingly sell product that is harmful to consumers or their belongings. It will institute systems and measures to monitor compliance in order to meet its responsibilities to consumers. The company will maintain an open communication channel with its consumers and customers and will carefully monitor the feedback to continuously improve its products and services and set quality standards to fulfill them. The company is committed to extend its quality standards to its contract manufacturers, key suppliers and service providers and by entering into alliances with them, to jointly 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.

The Company has over 16,000 employees and has an annual turnover of around Rs. 21,736 crores (financial year 2011 - 2012). HUL is a subsidiary of Unilever, one of the world’s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about €46.5 billion in 2011. Unilever has about 52% shareholding in HUL.Hindustan Unilever has set a target to more than double its turnover in just four years to 50,000 crore in a plan that industry experts find far too ambitious

Scope of the Sector

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 2011. 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 corers in 2011. 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 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 skincare, 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.

Indian Competitiveness and Comparison with the World Markets

The following factors make India a competitive player in FMCG sector:

•Availability of raw materials:

Because of the diverse agro-climatic conditions in India, there is a large raw material base suitable for food processing industries. India is the largest producer of livestock, milk, sugarcane, coconut, spices and cashew and is the second largest producer of rice, wheat and fruits vegetables. India also produces caustic soda and soda ash, which are required for the production of soaps and detergents. The availability of these raw materials gives India the location advantage.

•Labor cost comparison:


Low cost labor gives India a competitive advantage. India's labor cost is amongst the lowest in the world, after China & Indonesia. Low labor costs give the advantage of low cost of production. Many MNC's have established their plants in India to outsource for domestic and export markets.

•Resence across value chain:

Indian companies have their presence across the value chain of FMCG sector, right from the supply of raw materials to packaged goods in the food-processing sector. This brings India amore cost competitive advantage. For example, Amul supplies milk as well as dairy products like cheese, butter, etc.

Sector Outlook

FMCG is the fourth largest sector in the Indian Economy with a total market size of Rs. 60,000 crores. FMCG sector generates 5% of total factory employment in the country and is creating employment for three million people, especially in small towns and rural India.

HINDUSTAN UNILEVER LOGOLogo of Hindustan Unilever is containing the legacy of their parent company Unilever. Logo of Hindustan Unilever has also been changed with company name. This logo coincides with the announcement of new corporate identity. Name HUL was approved by shareholder at the year annual meeting on May 18 & new identity was officially announced on 25 June following government approval.

New identity provides optimum balance between maintaining the heritage of the company & synergies of global alignment with the corporate name of Unilever. Most importantly it retains “Hindustan” as the first word in its name to reflect the company’s continued commitment to local economy, consumers, partners, & employers .

New logo symbolizes the company mission of “Adding Vitality to life” & play a very strongly in our vision of “Earning the love & respect of India by making a real difference to every Indian”. It comprises 25 different icons representing organization, its brands & idea of vitality. PURPACE AND PRINCIPAL

HUL says: Our corporate purpose states that to succeed requires "the highest standards of corporate behavior towards everyone we work with, the communities we touch, and the environment on which we have an impact."


I. Always working with integrity.

II. Positive impact.

III. Continuous commitment.

IV. Setting out our aspirations

V. Working with others

VISION

Unilever products touch the lives of over 2 billion people every day – whether that's through feeling great because they've got shiny hair and a brilliant smile, keeping their homes fresh and clean, or by enjoying a great cup of tea, satisfying meal or healthy snack.

We will develop new ways of doing business with the aim of doubling the size of our company while reducing our environmental impact. We’ve always believed in the power of our brands to improve the quality of people’s lives and in doing the right thing. As our business grows, so do our responsibilities. We recognize that global challenges such as climate change concern us all. Considering the wider impact of our actions is embedded in our values and is a fundamental part of who we are.

INOVATIONBrands and innovation are at the heart of everything we do. In Unilever, research and development (R&D) is the home of breakthrough technology for bigger, better, faster innovations

LEADERSHIP

Brands and innovation are at the heart of everything we do. We focus on rolling out more innovations faster and to more markets.


Meeting changing consumer needs

“Unilever’s key goal is to double the size of our business while reducing our overall environmental impact. And innovation is core to that aim,” says Genevieve Berger, Chief Research & Development Officer. Develop great quality brands, and obtain scientific proof that all our products deliver on their claims. Our innovations are also supported by clinical trials to ensure safety for consumers and compliance with international regulations.

Innovation & our brands

“Innovation is one of the key levers we can pull to drive growth in the business. It’s the life-blood of our business and our brands,” continues Geneviève.

Innovation through expertise

“Our ability to apply breakthrough technology and science across categories is enabling us to benefit from much bigger market opportunities than we previously imagined,” sums up Genevieve.

ETHICS OF HUMAN RESEARCH

The Central Research Ethics Advisory Group (CREAG) advises the company on the ethics of involving human subjects in research studies.

Its aim is to ensure that this remains an intrinsic part of Unilever’s R&D culture, and that Unilever operates to the highest ethical standards in this area.

Consumer insight

Successful innovation is based on deep consumer insight. Consequently, we seek to build on our global strength in R&D with local knowledge of people’s habits and behaviors, and the benefits they gain from using our products. As such, in order to deliver the products that people want, we need to involve those people in the research and development process.

Specifically, the Group ensures that:

the rationale for doing research including human subjects is clear and the benefits articulated any risks to volunteers are minimized, understood and acceptable individuals give their consent voluntarily based on adequate information

COMPANY STRUCTURE


Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods (FMCG) company. It is present in Home & Personal Care and Foods & Beverages categories. HUL has over 16,500 employees, including over 1500 managers

THE BOARD OF DICRECTORS OF THE HUL COMPANY

The Board of Directors of the Company represents an optimum mix of professionalism, knowledge and experience. The total strength of the Board of Directors of the Company is nine Directors, comprising Non-Executive Chairman, four Executive Directors and four Non-Executive Independent Directors.

Mr. Harish Manwani - Chairman

Mr. Harish Manwani (58) assumed charge as the Non-Executive Chairman of the Company with effect from 1st July, 2005.

Mr. Nitin Paranjpe - CEO and Managing Director

Mr. Nitin Paranjpe (49) joined the Company as a Management Trainee in 1987.

Mr. R. Sridhar - Chief Financial Officer

Mr. Sridhar Ramamurthy (47) is a Chartered Accountant (Gold Medalist) as well as a Cost Accountant and Company Secretary.


http://www.hul.co.in/aboutus/companystructure/executivedirectors/RSridhar.aspx

http://www.hul.co.in/aboutus/companystructure/executivedirectors/NitinParanjpe.aspx

http://www.hul.co.in/aboutus/companystructure/nonexecutivedirectors/HarishManwani.aspx

http://www.hul.co.in/aboutus/companystructure/nonexecutivedirectors/HarishManwani.aspx

http://www.hul.co.in/aboutus/companystructure/executivedirectors/NitinParanjpe.aspx

http://www.hul.co.in/aboutus/companystructure/executivedirectors/RSridhar.aspx

Mr. Pradeep Banerjee - Executive Director, Supply Chain

Mr. Pradeep Banerjee (53) joined the Company as a Management Trainee in 1980.

Mr. Aditya Narayan - Independent Director

Mr. Aditya Narayan joined the Board of the Company as an Independent Director in 2001. He is the Chairman of the Audit Committee and a member of the Remuneration and Compensation Committee of the Company.

Mr. S. Ramadorai - Independent Director

Mr. Ramadorai joined the Board of the Company as an Independent Director in May 2002. He is a member of the Audit Committee and the Chairman of the Remuneration and Compensation Committee of the Company.

Dr. R. A. Mashelkar - Independent Director

Dr. Mashelkar joined the Board of the Company as an Independent Director in April 2008. He is a member of the Audit Committee and Remuneration and Compensation Committee of the Company.


http://www.hul.co.in/aboutus/companystructure/nonexecutivedirectors/RAMashelkar.aspx

http://www.hul.co.in/aboutus/companystructure/nonexecutivedirectors/SRamadorai.aspx

http://www.hul.co.in/aboutus/companystructure/nonexecutivedirectors/ANarayan.aspx

http://www.hul.co.in/aboutus/companystructure/executivedirectors/PradeepBanerjee.aspx

http://www.hul.co.in/aboutus/companystructure/executivedirectors/PradeepBanerjee.aspx

http://www.hul.co.in/aboutus/companystructure/nonexecutivedirectors/ANarayan.aspx

http://www.hul.co.in/aboutus/companystructure/nonexecutivedirectors/SRamadorai.aspx

http://www.hul.co.in/aboutus/companystructure/nonexecutivedirectors/RAMashelkar.aspx

Mr. O. P. Bhatt - Independent Director

Mr. Bhatt was appointed as an Independent Director on the Board of the Company in December, 2011. He is the Chairman of the Shareholders’ / Investors’ Grievance Committee of the Company. He is also a member of the Audit Committee and Remuneration and Compensation Committee of the Company.

1.1.6-SWOT ANALYSIS AND STP

SWOT Analysis

Strength

1. HUL is a part of the Unilever group, hence strong brand equity

2. It has over 15000 employees

3. Reach 6.4 million retail outlets which include direct reach to over 1.5 million retail outlets

4. Two R&D centres in India in Mumbai and Bangalore

5. Products with presence in over 20 consumer categories with over 700 million Indian consumers using

its products

6. As a part of CSR, HUL has initiatives like project Shakti, plastic recycling, women empowerment etc

Weakness

1. Market share is limited due to presence of other strong FMCG brands

2. HUL products has stiff competition from big domestic players and international brands

Opportunity

1. Tap rural markets and increase penetration in urban areas

2.Mergers and acquisitions to strengthen the brand

3.Increasing purchasing power of people thereby increasing demand

Threats

1. Intense and increasing competition amongst other FMCG companies

2.FDI in retail thereby allowing international brands

3. Competition from unbranded and local products

STP

Segment Products and services for daily needs


http://www.hul.co.in/aboutus/companystructure/nonexecutivedirectors/OPBhatt.aspx

Target Group Every Indian household especially the middle class

Positioning Being the largest FMCG company , their little efforts make a huge difference in the lives of people

USP

India's largest fast-moving consumer goods company

Hindustan Unilever Ltd

Type Public

Traded as BSE: 500696

BSE SENSEX Constituent

Industry Consumer goods

Founded 1932

Headquarters Mumbai, Maharashtra, India

Key people Harish Manwani (Chairman), Nitin Paranjpe (CEO and MD)

Products Foods, beverages, cleaning agents and personal care products


http://en.wikipedia.org/wiki/Personal_care_products

http://en.wikipedia.org/wiki/Cleaning_agent

http://en.wikipedia.org/wiki/Harish_Manwani

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Mumbai,_Maharashtra

http://en.wikipedia.org/wiki/Fast_moving_consumer_goods

http://en.wikipedia.org/wiki/BSE_SENSEX

http://www.bseindia.com/scripsearch/scrips.aspx?myScrip=500696

http://en.wikipedia.org/wiki/Bombay_Stock_Exchange

http://en.wikipedia.org/wiki/Ticker_symbol

http://en.wikipedia.org/wiki/Public_company

http://en.wikipedia.org/wiki/Types_of_business_entity

http://en.wikipedia.org/w/index.php?title=File:Hindustan_Unilever_Logo.svg&page=1

Revenue 22,116 crore (US$4.18 billion)(2011-2012)[1]

Net income 2,691 crore (US$508.6 million)(2011-2012)

Employees 16,500 (2011)

Parent Unilever Plc (52%)

Website www.hul.co.in

COMPANY HISTORY

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 52.10% equity in the company. The rest of the shareholding is distributed among about 360,675 individual shareholders and financial institutions.

Since the very early years, HUL has vigorously responded to the stimulus of economic growth. The growth process has been accompanied by judicious diversification, always in line with Indian opinions and aspirations.

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. In 1993, it acquired the Kissan business from the UB Group and the Dollops Ice-cream business from Cadbury India.


http://www.hul.co.in/

http://en.wikipedia.org/wiki/Unilever

http://en.wikipedia.org/wiki/Holding_company

http://en.wikipedia.org/wiki/United_States_dollar

http://en.wikipedia.org/wiki/Crore

http://en.wikipedia.org/wiki/Net_income

http://en.wikipedia.org/wiki/Hindustan_Unilever#cite_note-0

http://en.wikipedia.org/wiki/United_States_dollar

http://en.wikipedia.org/wiki/Crore

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.

HUL launched a slew of new business initiatives in the early part of 2000’s. Project Shakti was started in 2001. It is a rural initiative that targets small villages populated by less than 5000 individuals. It is a unique win-win initiative that catalyses rural affluence even as it benefits business. Currently, there are over 45,000 Shakti entrepreneurs covering over 100,000 villages across 15 states and reaching to over 3 million homes.

In 2002, HUL made its foray into Ayurvedic health & beauty centre category with the Ayush product range and Ayush Therapy Centres. Hindustan Unilever Network, Direct to home business was launched in 2003 and this was followed by the launch of ‘Pureit’ water purifier in 2004.

In 2007, the Company name was formally changed to Hindustan Unilever Limited after receiving the approval of share holders during the 74th AGM on 18 May 2007. Brooke Bond and Surf Excel breached the the Rs 1,000 crore sales mark the same year followed by Wheel which crossed the Rs.2, 000 crore sales milestone in 2008.

On 17th October 2008, HUL completed 75 years of corporate existence in India.

In January 2010, the HUL head office shifted from the landmark Lever House, at Backbay Reclamation, Mumbai to the new campus in Andheri (E), Mumbai.

On 15th November, 2010, the Unilever Sustainable Living Plan was officially launched in India at New Delhi.

In March, 2012 HUL’s state of the art Learning Centre was inaugurated at the Hindustan Unilever campus at Andheri, Mumbai.

In April, 2012, the Customer Insight & Innovation Centre (CiiC) was inaugurated at the Hindustan Unilever campus at Andheri, Mumbai

HUL PRODUCT RANGE AND BRSNDS

Food brands:


Annapurna salt and atta Bru coffee

Brooke Bond (3 Roses, Taj Mahal, Taaza, Red Label) tea

Kissan squashes, ketchups, juices and jams

Lipton tea

Knorr soups & meal makers and soupy noodles

Kwality Wall's frozen dessert

Modern Bread , ready to eat chapattis and other bakery items

Homecare Brands

Active Wheel detergent Cif Cream Cleaner

Comfort fabric softeners

Domex disinfectant/toilet cleaner

Rin detergents and bleach

Sunlight detergent and colour care


http://en.wikipedia.org/wiki/Surf_(detergent)

http://en.wikipedia.org/w/index.php?title=Domex&action=edit&redlink=1

http://en.wikipedia.org/wiki/Comfort_(fabric_softener)

http://en.wikipedia.org/wiki/Cif

http://en.wikipedia.org/wiki/Modern_Food_Industries_(India)_Ltd

http://en.wikipedia.org/wiki/Kwality_Wall's

http://en.wikipedia.org/wiki/Knorr_(brand)

http://en.wikipedia.org/wiki/Lipton

http://en.wikipedia.org/wiki/Brooke_Bond

Surf Excel detergent and gentle wash

Vim dishwash

Magic – Water Saver

Personal Care Brands:

Aviance Beauty Solutions Axe deodorant and after shaving lotion and soap

LEVER Ayush Therapy ayurvedic health care and personal care products

Breeze beauty soap

Clear anti-dandruff hair products

Clinic Plus shampoo and oil

Close Up toothpaste

Dove bar & skin cleansing, hair care range, lotions & Creams and anti-perspirant deodorants

Denim shaving products

Fair & Lovely - fairness products

Hamam

Lakmé beauty products and salons

Lifebuoy soaps and hand wash range

Liril 2000 soap

Lux soap, body wash and deodorant

Pears soap

Pepsodent toothpaste

Pond's talcs and creams


http://en.wikipedia.org/wiki/Pond's_Creams

http://en.wikipedia.org/wiki/Pepsodent

http://en.wikipedia.org/wiki/Pears_soap

http://en.wikipedia.org/wiki/Lux_(soap)

http://en.wikipedia.org/wiki/Liril

http://en.wikipedia.org/wiki/Lifebuoy_(soap)

http://en.wikipedia.org/wiki/Lakme_cosmetics

http://en.wikipedia.org/wiki/Hamam_(soap)

http://en.wikipedia.org/wiki/Dove_(toiletries)

http://en.wikipedia.org/wiki/Close-Up_(toothpaste)

http://en.wikipedia.org/wiki/Ayurvedic

http://en.wikipedia.org/wiki/Lynx_(grooming_product)

http://en.wikipedia.org/wiki/Vim_(cleaning_product)

http://en.wikipedia.org/wiki/Surf_Excel

Rexona soap

Sunsilk shampoo

Sure anti-perspirant

Vaseline petroleum jelly, skin care lotions

Water Purifier Brand:

Pureit Water Purifier

THE TOP 10 COMPANIES IN FMCG SECTOR

1. Hindustan Unilever Ltd.2. ITC (Indian Tobacco Company)3. Nestle India4. GCMMF ( AMUL)5. Dabur India6. Asian Paints (India)7. Cadbury Industries8. Britania Industries9. Procter and Gamble Hygine and Healthcare10.Marico Industrie

OUT – OF – HOME BUSINESS

Out – of – home branding is the new buzzword sweeping Indian stores. Brands that stubbornly remain indoors through their positioning and segmentation strategies are in a jolt! Consider the facts; the Indian population is a young population. Life expectation is longer than before. Income standards are high. Except for a year of aberration, the Indian monsoon has largely behaved! Good monsoon means a good crop. Larger part of Indian economy is a non tax-paying economy. Goo rains spell good crops and good crops in turn spell a good amount of disposable income. The average Indian is spending a lot more time out of home than before. Eight hours at work, two hours at travel and two hours of outdoor entertainment and eating out. And that a lot of time spent out of home. The brand in his life has to appeal to his senses more Out-of-home than when in


http://en.wikipedia.org/wiki/Vaseline

http://en.wikipedia.org/wiki/Sunsilk

http://en.wikipedia.org/wiki/Rexona

home.OOH is an arm of HUL that caters to the on-premise requirements using state of the art vending machines, with branded product mixes enabling people to sip their favorite beverages when outside the homes.OOH division also supplies products directly to caterers, confectionary manufacturers, shipcandlers and others to meet their bulk requirement that forms the basis of Institutional business

Have you caught the tail of a new trend in town? Have you as yet spotted the best of brands running into the terrain of out-of-home consumption? Running for cover from the meltdown in the in-home segment of consumption!

Out-of-home branding is the new buzzword sweeping Indian shores. Brands that stubbornly remain indoors through their positioning and segmentation strategies are in for a jolt! Consider the facts. The Indian population is a young population. Life expectation is longer than before. Income standards are up. Except for a year of aberration, the Indian monsoon has largely behaved! Good monsoons mean a good crop. Large parts of the rural economy are a non tax-paying economy. Good rains spell good crops and good crops in turn spell a good amount of disposable income!

The metro is a happening place. We have five big ones and a whole host of 29 one million plus population towns that are buzzing with activity. The man works. The woman works as well. The average Indian is spending a lot more time out of home than before. Eight hours at work, two hours on travel and two hours of outdoor entertainment and eating out, gobbles up half his day. And that's a lot of time spent out of home! The brand in his life has to appeal to his senses more out-of-home than when in home.

Tea and coffee have always been very popular beverages among people. It is beyond the class boundaries. People of all age groups relish them. With globalization and expansion of retail business, markets etc the ready to serve food items and beverages have gained lot of demand. One can spot the coffee tea vending machines almost everywhere- be it Hospitals, Airports, Commercial complexes, offices, big markets and even local colony markets. Its popularity can be judged from the fact that in places like Pragati Maidan one can find ready to serve tea, coffee almost everywhere. It has become a style statement to be drinking these instead of the handmade tea/coffee.

They sell like hot cakes especially in markets and shopping places. Nowadays people are conscious about hygiene. Many people go in for these ready to serve tea/coffee and of course their good taste is a major drawing factor.


Lipton Yellow Label has painted many a town and cities yellow! Many a restaurant, many a bus stop, and many a signage potential is today all yellow Lipton seems to run out of home and focus on consumption that is outdoor while Sister Brooke Bond seems to focus on what is happening inside the home!

“Happy people are productive people”. This is the basic rule of any company. Big or small, every employer tries at keeping his employees, customers and clients happy. Imagine if an organization has a wide range of refreshments to grab, at fingertips; if they could enjoy getting a whole load of refreshments as and when they wished for it. Lever foods service gives them this freedom in form of vending machines. Available in hot and cold formats, they are the complete vending solutions for an organization. So, everyone is happy at the push of a button.

Geographically, tea is widely consumed in the North, East and West of India, and is popular with a wide variety of social classes and consumer age groups. Black standard tea constitutes nearly 80% of value sales. In the south, coffee is bigger as a proportion of total hot drinks than in the rest of the country though green tea has seen its popularity rise.

It accounts for 90% of the total beverage consumption in the country. In 2007, tea co9nstituted 70% of retail volume sales, compared to coffee and other hot drinks with 4.4% and 26% shares respectively.

Retail sales volume in year 2009

(Source: www.answers.com)


India accounts for 26% of the total production of world’s tea and 4.6% of that of world’s coffee.

World Coffee Production in year 2009 - (source:www.financialexpress.com)

World Tea Production in year 2009 – (source : www.answers.com)

Unilever (Brooke Bond and Lipton) is the clear leader, holding over 30% of the market share, while Tata Tea (Tata) trails it with almost 20%. The remainder of the market is far more fragmented and shared between numerous small players. Loose tea comprises a 45-per cent market and is a formidable challenge to the Indian packaged tea segment, because of its lower prices.


INTRODUCTION OF PRODUCTS&PRODUCT RANGE vending

LIPTON – THE TEA AND COFFEE RANGEAn international brand with a winning formulation, with the assurance of total hygiene and top class quality, Lipton Tea and Coffee comes in a range of mouth-watering flavoring:-

THE LIPTON VENDING MACHINE Lipton Vending Machines have been specially designed and are being introduced keeping our market realities and interests in mind. Following are the variants of Vending machines:

Mr. Dependable – The New 4 Lane U Cup Machine

1. Option of 4 ingredients in nature of coffee, tea, soup etc.

2. Staggered dispensing option for tea bag.

3. Temperature interlocking.

4. Auto cleaning

5. Water source – Online/Bubble top

Smart card Machine

1. Option of 4 ingredients in nature of coffee, tea, soup etc.

2. Post or pre paid option through smart card

3. Option for consumption data down loading to PC for MIS processing.

4. Staggered dispensing option for tea bag.

5. Auto Cleaning

6. Temperature Interlocking

7. Water source – Built in tank/ bubble top

Thirst Quencher – Ice Tea Machine

1. Option of 2 ingredients in nature of ice tea and cold coffee.

2. Dispensing Rate:

- 3 cups/min (200ml each)

- Approx 20 cups non stop

3. Auto cleaning

4. Water source – Online/ Bubble top


High Speed Hot Machine

1. Option of 5 ingredients in nature of coffee, dairy whitener, soup etc.

2. Option of simultaneously dispensing 3 drinks.

3. Option of cappuccino.

4. Staggered dispensing option for dairy whitener.

5. Dispensing rate:

- 15 cups/min of 100 ml each

- Approx 250 cups non-stop

6. Auto cleaning.

7. Temperature inter-locking

A Café bar at Work – Fresh bean Coffee Machine

1. Option of 4 ingredients in nature of coffee bean, dairy whitener, soup etc.

2. Providing 10 drink options including 6 options of fresh bean coffee.

3. Dispensing rate :

- 2 cups/min of 100ml each

4. Temperature interlocking

5. Water source – on-line/ Bubble top.

A Lipton Vending Machine is the most advanced of its kind. Features like Microprocessor controlled water temperature, inbuilt Digital Counter, Hardware Lock and Auto-Flush system helps to maintain a low failure rate. It is also hygienic and insect proof, which also contributes to its durability. Flexibility in cup offerings – full and half; is another attribute that makes the Lipton Vending Machine stand out as the most convenient vending machine. The technologically superior equipment has been put through intense stress tests so that it can withstand the demanding local market.

WATER MANAGEMENT

The HUL Company has been known for remarkable consistency in quality for over a hundred years. To ensure that quality beverage is served consistently, cup after cup, the Lipton Vending Machine is fitted with any of four different types of filters :- SINGLE, DOUBLE, TRIPLE AND RESIN filter. This makes sure that the best and safest quality of water goes into the vended Lipton cup. The filter thus enhances the quality of water, taste of the beverage and also increases

equipment life.


SERVICE SUPPORT

For the Lipton vending machine, there shall be an authorized service center with a vast network to cater to the needs of the customer. Three basic steps shall be undertaken to ensure long life and smooth functioning of your Lipton Vending Machine.

1) Regular Daily Maintenance: - Proper training shall be imparted on the daily usage, cleaning and maintenance of the Lipton Vending Machine, at the time of installation, to your personnel.

2) Monthly Preventive Maintenance: - The Lipton crew shall make regular monthly visits for check-ups, maintenance and smooth functioning of Lipton Vending Machine.

3) Breakdown and Repairs: - In case of breakdown, the Lipton crew shall address the problem promptly and effectively. Also, a regular dispatch plan for the pre-mixes shall be regularly communicated to you, for you to maintain an appropriate stock inventory. An exclusive customer care phone no. is provided for any queries and assistance on the Lipton Vending Machine.

4)

INTRODUCTION OF UNILEVER FOOD SOLUTION PRODUCT AND PRODUCTS RANGE

Unilever food solution – unilever food solution has recipes products with the assurance of total hygiene and top class quality such as Knorr, kissan, Best food, Brown Polson, REX. All products help to the cooks for preparation of recipes with saving time and are being introduced in the market.

Unilever Food solutions is one of the world’s leading foodservice businesses.

Works closely with customers, including caterers, restaurateurs and major hotel and fast-food chains, to create food solutions that help grow their business.

Operates in 68 countries worldwide, employing 4,700 people, including 230 chefs.

Holds leading positions in bouillons/bases, seasonings, sauces, soups, dressings and desserts.

Unrivalled combination of:

− Consumer insight− Customer understanding

− Chefmanship® – culinary passion and expertise


− Well-known brands.

It is not wrong to say that the category of soups was launched by Knorr in India. The Knorr range of soups is available in a number of tasty & exciting varieties. There is a flavour to literally suit every taste palate; the Classic range of soups with flavours like Thick Tomato, Mixed Vegetable & Chicken Delite, the Chinese range with flavors like Sweet Corn Vegetable, Sweet Corn Chicken & Hot n Sour & the Instant Soups range with flavours like Tomato, Mast Masala & Mixed Vegetable.Knorr Ready to Cook helps the consumer make her family's favorite dishes at home & helps her get restaurant like taste at home itself. It comes in the Indian Ready to Cook range & Chinese Ready to Cook range.

Seasoning-

Punch line is Add magic to your culinary masterpieces and delight taste buds with knorr seasoning.

It is hard to imagine what cooking would be like without the unique flavours provided by seasoning. For centuries, seasonings have been an integral part of the world’s most popular cuisines. Besides imparting a distinctive touch to a dish, seasoning also has numerous health benefits

Knorr Aromat seasoning powder

Packaging: 24 x 5 x 100 gBrand: KNORRSubbrand: AROMAT SEASONINGCategory: Seasoning & BouillonSubcategory: Seasoning

Knorr tandoori malai tikka mix


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Packaging: 24 x 500 gBrand: KNORRSubbrand: KNORR TADOORI MALIA TIKKA MIXCategory: Seasoning & BouillonSubcategory: Seasoning

Storage-Ambient

Knorr lime seasoning mix

Packaging: 24 x 500 gBrand: KNORRSub brand: KNORR LIME SEASONING MIXCategory: Seasoning & BouillonSubcategory: Seasoning

Storage-Ambient

Knorr chicken broth powder

Packaging: 24 x 5 x 100 gBrand: KNORRSubbrand: KNORR CHICKEN BROTH POWDERCategory: Seasoning & BouillonSubcategory: Seasoning

Storage-Ambient

Knorr tandoori tikka mix

Packaging: 24 x 500 gBrand: KNORRSub brand: KNORR TANDOORI TIKKA MIXCategory: Seasoning & BouillonSubcategory: Seasoning

Storage-Ambient


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Soups-

Punch line is giving your diners the dual benefits of great taste and nutrition with knorr soups.

It was customary to combine various ingredients in a large pot and cook the pot directly over fire. The result? A delicious and healthy dish we today refer to as soup

1) Knorr sweet corn soup2) Knorr thick tomato soup

3) Knorr thick chicken soup

4) Knorr thick mushroom soup

5) Knorr tomato NOG (no onion Garlic) soup

6) Knorr vegetable soup

7) Knorr cream base soup

Kissan is a local jewel and one of the most popular brands in India. Tomato is a critical ingredient in most Indian food preparations. Kissan strives to meet this huge demand through it range of products that include tomato sauce, ketchup, puree and paste. A sauce is a base used in a variety of food preparation, across cuisine. A sauce compliments a dish while retaining the natural taste of its ingredients. Sauces help food look delightful, smell great and taste delicious


KISSAN Sauce Dip 12 x 1 kg

Packaging: 12 x 1 kgBrand: KISSANSubbrand: Kissan Sauce DIpCategory: Sauces

Storage-Ambient

Shelflife-6 months

KISSAN Tomato Ketchup Sachet 960 x 9 g

Packaging: 960 x 9 gBrand: KISSANSubbrand: Kissan Tomato Ketchup SachetCategory: Sauces

Storage-Ambient

Shelflife-6 months

KISSSAN Tomato Paste 12 x 1 kg

Packaging: 12 x 1 kgBrand: KISSANSub brand: Kissan Tomato PasteCategory: Sauces

KISSAN Sauce Maker 6 x 1. 7 kg

Packaging: 6 x 1,7 kgBrand: KISSANSub brand: Kissan Sauce MakerCategory: Sauces


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Storage-Ambient

KISSAN Tomato Puree 12 x 1 kg

Packaging: 12 x 1 kgBrand: KISSANSub brand: Kissan Tomato PureeCategory: Sauces

The history of the best foods dates back to more than a century and is enjoyed by diners around the world. It is one of India’s favorite mayonnaise brands in the food service industry. Made from the finest ingredients to deliver the taste, texture and quality you seek in a good mayonnaise, best helps you jazz up classic dishes as well as create exciting new recipes.

Dressings-

Dress up your salads and range of dressings that is punch line of dressings

Derived from the world “mayonnaise “mayonnaise was an accidental invention by the French chef of the Duc De Richelieu. It is savoured across the globe as a grate accompaniment for salads, sandwiches and burger. It is also used as a base for preparing a variety of dressings and dips


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BEST FOODS Real Mayo Sauce 4 x 2.5 kg

Packaging: 4 x 2,5 kgBrand: BEST FOODSSubbrand: Best Foods Real Mayo SauceCategory: DressingsSubcategory: Real Mayonnaise

Storage-Ambient

Shelflife-4 months

BEST FOODS Tartar Sauce 4 x 2,5 kg

Packaging: 4 x 2, 5 kgBrand: BEST FOODSSub brand: Best Foods Tartar SauceCategory: DressingsSubcategory: Tartar Mayonnaise

Storage-Ambient

BROWN & POLSON Corn Flour 12 x 1 kg

Packaging: 12 x 1 kgBrand: BROWN & POLSONCategory: Others

Storage-Ambient

BROWN & POLSON Custard Powder 12 x 1 kg

Packaging: 12 x 1 kgBrand: BROWN & POLSONCategory: Others

SEGMENTATION OF HUL VENDING DIVISION

Vending division Segment in India

Consumers in different parts of the country have heterogeneous taste. Dust tea is very popular in the south. In the western states, good quality loose tea is preferred in Gujarat, whereas in Maharashtra, consumers provide a large market to packet as well as unbranded tea. The eastern states of West Bengal and Orissa consume CTC broken. Among the northern states, CTC fanning is liked in Rajasthan and CTC broken in others states of the North. The Central India is predominantly a dust market


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CTC = Cut, Tear, Curl. CTC production is a shortened, machine automated production process. Importance is put on a uniform leaf and a quickly colored infusion.Hindustan Unilever Limited’s (HUL) packet tea business has strengthened its position in the market in 2004, led by its two mega brands, Brooke Bond and Lipton. Simultaneously HUL continues to post strong growth in coffee.

HUL has further consolidated on the successful relaunched of Brooke Bond in the second half of 2003. The three Brooke Bond sub-brands, Taj Mahal, Red Label and Taaza, with their distinct positioning, have expanded their presence to cover new geographies. This has helped strengthen marketplace position.

Appropriately priced packs have been introduced to make the Brooke Bond offerings more accessible. Coupled with high-impact market activation, these packs have increased Brooke Bond’s market share and sustained its strong growth.

The Lipton brand, targeted at young consumers, has been appropriately expanded in the Out-of-Home segment. Lipton Ice Tea has been successfully test-marketed in Bangalore and Chennai. The consumer test proven mix will now be taken national, leveraging the alliance between HUL and Pepsi. HUL has already identified Out-of-Home as a growth driver. The channel, which has posted strong growth in the last two years, will be used for the entire HUL Beverages and Foods categories.

In the Instant Coffee segment, HUL continues to post strong growth. Bru Instant Coffee has been re-launched, with a new identity, communication and modern pack formats. Superior activation, penetration building activities and investment in strategic channels, like Out-of-Home, is contributing to the growth. Bru, as a franchise, has been strengthened with the filter coffee brand, Deluxe Green Label, re-launched as Bru Roast & Ground.

Consumption in leading producing countries- (source: ICO)


Coffee consumption in India, by and large is an urban phenomenon with an urban and rural divide of 71% and 29% respectively. Among the type of coffee consumed it was almost equally divided between instant (soluble) and filter (Roast and ground) coffees though the proportion of instant coffee is very high in non-south.

Per capita Consumption of Coffee in India (source: www.indiacoffee.org)

SEGMENTATION OF UNILEVER FOOD SOLUTIONS

Today, people are more aware of the journey their food makes from the field to their plate. In these insecure times, they are trying to take greater control of their lives. Eating healthy food and taking care of the planet are becoming increasingly important. The number of people listing health has their number one concern has increased consistently since Oct 08, even through tough economic times.*

*Nielsen – Global Online Survey April 09 to March 2010 Consumer Confidence – GB results

People are looking for products they trust. They want products from companies that are transparent in their communications and behavior. They want to feel that their consumption choices are making a contribution to the world and their local community.

Hand in hand

For chefs and caterers it is increasingly important to offer a guest experience in line with these expectations. It is about tasty and nutritious dishes made with natural ingredients and sourced in a socially and environmentally responsible way. And it is about cooking in a more efficient way generating less waste and using less energy.


We work with you to develop innovative solutions to help match your guests’ health and environmental demands. For instance, we look for new techniques to become more efficient in meal preparation and presentation. We provide support and advice on how to use less water and reduce energy and waste. Of course, in these services, taste and health stay top-of-mind.

Our support to healthier solutions can take several forms. For example, we help to boost the consumption of vegetables by making these more appealing. We develop healthier foods that are attractive and convenient alternatives. So we are progressively reducing salt in our products by changing recipes, using salt replacements and enhancing flavours with other ingredients like herbs and spices. Nutritional training for chefs and caterers and for our own people is high on our agenda.

To read more about Unilever’s sustainability approach

Segmentation of knorr

Hindustan Lever's Knorr brand will see some significant action this winter, including entry into new product segments and promotional activity.

Sources close to the company said Knorr, which is currently only into soups, will soon be extended into spices. The spices range is expected to include chilli powder, coriander, turmeric and pepper, and is proposed to be launched initially in Hyderabad. "Extension to other parts of the country may happen over the next six months. More items are also likely to be added later," sources said. Brand manager for Knorr, confirmed that HLL, which had brought Knorr under the Kissan division recently, was working on a new strategic direction for Knorr. He declined to get into the specifics of this direction or to state which new product segments were being contemplated. "We have some products lined up. Winter is the peak season, so we have activities planned. This will also include media and in-store activity," he said.

Knorr became a part of the HLL portfolio when HLL acquired International Best foods a few years ago. Globally, Knorr is into seasonings, sauces, soups, salad dressings and mixes.

HLL's entry into spices would be significant, because the branded spices market does not have any major national player at present. Regionally strong players like MDH (north), Everest (west), Shakti Masala (Tamil Nadu) and MTR (Karnataka) dominate today. Brooke Bond had introduced spices under the Sona brand but had to withdraw it before long. The total spices market in India is estimated to be about Rs 3,500 crore and India is believed to account for nearly 30 per cent of world production.

DemographicsAge: 18 ± 35 years Gender: Male ± Female Income: Rs. 25,000 plus Occupation: Students, kids, families Education: Literate and Illiterate

GEOGRAPHIC;


Region- urban and rural both

PSYCHOGRAPHICS;

Social class – middle, upper middle, upper

Personality- ambitious, playful, creative

KISSAN SEGMENTAION;

Segmentation Market segmentationIs the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs? The process of segmentation is distinct from targeting(choosing which segments to address) and positioning (designing an appropriate marketing mix for each segment).

BASIS OF MARKET SEGMENTATION •Geographic segmentation•Demographic segmentation•Psychographic segmentation

A) Geographic Segmentation Kissan, as it’s a part of HUL, which has a huge distribution setup which helps it to reach the masses and rural Areas better than the other brands present in the market. It has both width and breadth in marketing.

B) Demographic Segmentation Primarily for Kissan jam and jelly the company considers children to be the most lucrative customers. Kissan ketchup has a different take on the type of customers. It looks for more “Samosas “and “Pakora“Freaks who truly outnumbers many others in the consumption of Kissan ketchup.

C) Psychographic Segmentation

Kissan provides special offers during festivals to attract more people towards their product. Offers in spEcialsocial festival allows a large number of consumers to experience and enjoy the Kissan Tomato Ketchup taste. The main target segment for the brand was the growing kids and the tagline used was: “Deliciously wholesome products for kids to grow up”. Consequently, mostKissan ads show kids eating food only whenKissan jam or ketchup is applied to it. The most popular product


under the brand is the tomato ketchup and the recent tagline of the same is “just lagao, kuch bhi khao” (HUL WEBSITE) Foods(4% Revenue, 0.8% EBIT): In spite of having one of the best distribution networks (coverage of 6.3 moutlets) in the country, the food business has never constituted a big part of revenues. That is why this is the current focus area for HUL. Presence in the foods category is mainly through Kissan brand. HUL is clearly keeping a low profile in the staples category, which is low margin business. Foods margin dipped partly due to launch related costs for Amaze brain foods.

COMPETITORS OF HULVENDING DIVISION

The three chief competitors of Hindustan Unilever Ltd in tea and coffee vending business are Nescafe, Tata, Georgia and Café Coffee Day which have their presence in the market with following products:1) Café Coffee Day

Café Coffee Day is a chain of coffee shops in India. A division of Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL), it is commonly known as Coffee Day. It opened its first cafe in 1996 on Brigade Road in Bangalore, and today has the largest cafe retail chain

in India - with 436 cafes in 69 cities.Headquartered in Bangalore, a majority of its cafes are also located in Bangalore. The cafe chain has had much success riding, and to some extent creating, the cafe culture wave that swept across metropolitan

(2) FRESH & HONESTTill recently a company selling beverages, Fresh and Honest, a part of the Sterling group, has now added noodles and corn flakes to its product basket by signing up deals with Indo Nissan Foods Limited (makers of Top Ramen noodles) and Kellogg's.

Fresh and honest imports soup powder and Swiss chocolate powder from two Swiss companies Haco and Domaco respectively. The coffee bean, dip tea packs, milk and sugar are sourced within India. The coffee bean is sourced from Chikmagalur, Karnataka.

VENDING MACHINE & THEIR FEATURESSINGLE OPTION—simple-sleek, detachable drip tray, hot water facility.DOUBLE OPTION-HOT—detachable drip tray, hot water facility. TRIPLE OPTION-HOT—built in stabilizer, auto cleaning, digital counter, temperature interlocking. FOUR OPTION-HOT— auto cleaning, digital counter, temperature interlocking, auto flushing. MULTIPLE OPTION-HOT— Provision for mineral water bubble top, auto flushing, temperature interlocking, digital counter.


(4) NESTLE

The main competitor of HUL vending products in the market is Nestle. And listed below are some points about Nestle.All about NestléNestlé was founded in 1866 by Henri Nestlé, a pharmacist, who

developed a food for babies who were unable to breastfeed. The Nestlé Company has aimed to build a business based on sound human values and principles.

COMPETITOR’S PRICES

GEORGIA

Product Name Rate Specification

Georgia Milk 110.00 Per Kg( Appx. 100 cups)

Georgia Cardamom Tea/ Ginger Tea/ Masala Tea

220.00 Per Kg (Appx.95 Cups)

Georgia Coffee 200.00 Per Kg (Appx. 95 Cups)

Georgia Hot Lemon Tea 190.00 Per Kg ( Appx. 125 Cups)

Georgia Without Sugar Milk 310.00 Per Kg (Appx 200 cups)

Sun fill Soup 330.00 Per Kg ( Appx. 167 Cups)

NESTLE

Product Name Rate SPECIFICATION

Nescafe Coffee Premix 185.00 Per kg (Approx. 80 cups)

Nescafe Low Sugar Premix 200.00 Per Kg (Approx. 80 cups)

Nescafe Classic coffee 535.00 Per 500 Gms,

Everyday Whitener Premix 112.00 Per kg (Approx. 100 cups)

Everyday Dairy Whitener Poly 180.00 Per kg


Badam Milk Premix 220.00 Per Kg

Nestea Lemon / Peach Premix 98.00Per 500 gm (Approx. 15 cups)

Nestea Cardamom Tea Premix 190.00 Per kg (Approx. 80 cups)

Maggie Hot Cup Soup Tomato 375.00 Per kg (Approx. 170 cups)

Tea Bags 0.70 Per Bag

Creamer 3Gm 101.83 Per Case( 24pkt)

Paper Beaker 150 Ml 0.45 Per Beaker

Plastic Beaker 150 Ml 0.50 Per Beaker

Sugar Powder 43.50 Per Kg

Sugar Cube [Economy Pack] 42.00 Per kg

COMPETITOR OF UFS-The main Competitors of knorr seasoning and soups MaggiMaggi = 3 categories of soups each having 3 variants. Home style, Chinese style and Chef Style.They have added one in each category very recently, which makes total of 12 flavors.‡ They also have a variant called Sanjeevni Amla, spinach, Dal and tomato ±ready to make cup soup‡ MAGGI healthy Soups contain real vegetables, are low fat, low cholesterol and free from synthetic colors and added MSG.‡ MAGGI in India is too noodles’, which will not make it a big threat to Knorr.‡

Chings Secret= expected to be a tough challenge to Knorr.‡ 9 variants and positioned as real Chinese, which is relevant because of its presence in instant food products like sauces, vinegar, hakka noodles etc.‡ It has not the ability to trouble Knorr market because of its ³CHINESE´ claim against the ³SOUP´ claim.Maggi’s new punch line “Taste Bhi, Health Bhi” after re-launchingMaggi’s new punch line “Taste Bhi, Health Bhi” after re-launching its bran

Pricing


Knorr soups range between Rs. 29 to Rs. 33 and 34 grams to 68Knorr soups range between Rs. 29 to grams in quantity whereas Maggi’s range being Rs. 29 to Rs. 303for 40 g to 70 g packsMaggi introduced 1 serving packs of 12 g for Rs. 8 – a first time in IndiaMaggi’s new offer – 20% free in 70 g packsMaggi’s new offer – 20% free serving 1

Pricing of Maggi Soups are marginally lower than that of KnorrMaggi Soups are Healthier than Knorr but need to increaseMaggi Soups are more Healthier than Knorr but need to increase the range of flavorsthe range of flavorsBoth the brands have huge opportunities in the rural markets

Kissan competitors

1. MAGGIE KETCHUP

2. TOPS KETECHUP

3. H.J HEINZ KETECHUP

4. SMITH & JONNES KETECHUP

MAGGIE KETCHUP -;

MARKED BY NESTLE INDIA LTD

MANUFACTURED BY NESTLE INDIA LTD

PRICE- Rs 65 QTY (500gm)

FEATURES

TOPS KETCHUP-;

MARKETED BY TOPS INDIA LTD

MANUFACTURED BY TOPS INDIA LTD

PRICE-57 QTY (500gm)

FEATURES

H.J HEINZ ketchup -;

MARKETED BY -H.J HEINZ COMPANY

MANUFACTURED BY -H.J HEINZ COMPANY

PRICE-Rs65 QTY (500 gm)


Competitors of bestfoods-

Garlic mayonnaise

Category: Seasoning

Keywords: spices, seasonings , condiments

Place of Orign: IndiaFun Foods Pvt. Ltd. is an ISO 9001: 2000, HACCP certified company having state of the art manufacturing facilities and country wide distribution and marketing network

Basic InformationBusiness Type: Manufacture & TradeProduct/Service (We Sell): Mayonnaise, DIET Mayonnaise, Eggless Mayonnaise, DIET Eggless Mayonnaise, Garlic Mayonnaise

Competitors of custard and baking powder-

Custard powder

We are a leading manufacturer of Custard Powder that is of superior quality. The Custard Powder offered by us is nutrition rich and available in attractive packing.

It is used -

As a spread over cake, pastries, pudding and sweets.

It is also used in making cookies

It is also used for preparing fruit trifles and other desserts. It can be served either hot or cold depending on the varying tastes and preferences. Desserts, fillings and sauce made with our custard powder are thicker, creamier and tastier.

Hone money top company

We supply a wide array of custard powder which is highly acclaimed owing to sweet taste and different usage. This custard powder is used for easy preparation of set custard puddings, fruit trifles and various other desserts and puddings. It can be served either hot or cold depending on the varying tastes and preferences.

MARKETING STRATEGY

Strategic market is the process of communicating and sharing data between different department of an organization to collectively formulate future


http://www.21food.com/product/search_keys-condiments-p1.html

http://www.21food.com/product/search_keys-seasonings-p1.html

strategies and implement them with maximum efficiency. Strategic regarding which markets to serve and with what products; which brands to extend and at what intervals are developed. The strategic planning process helps organization view their future goals clearly. Strategic marketing planning involves planning the brand strategy, the product strategy, the sales promotion strategy, and the advertising strategy. Before developing any strategy, a firm to first to first develops a corporate mission statement which explains the business of the organization, and its customers. Established brands would need quite some time to penetrate the vast and scattered market. This activity can be started in towns and small cities on a small scale so that products become price competitive. During winter, summer the demand would go down but otherwise, rest of the 8-9 months would witness steady demand.

OBJECTIVE OF TRAININGAn attempt has been made to fulfill the following objectives:

(i) Finding new opportunities for the vending services and UFS of the company by making organizations acquainted with concept.

(ii) Handling marketing and sales operations for achieving increased growth & profitability.

(iii) Generating leads and converts them into sales for product.

(iv) Customer grievances and distributor handling.

I subdivide these objectives as:

(i) Understanding the nerve of competition in the market with major players namely Café Coffee Day, Nestle, Georgia etc. and maggi,tops , H.J heinz company

(ii) Understanding the pulse of the market & accordingly plan the course of action.

(iii) Interacting with clients for understanding their need and the information required by them.(iv) Finding the major factors that led the customers to decide on which tea/coffee and saup,

sauces etc they choose.

DISTRIBUTION NETWORK OF HUL:


FACTORY

DEPOT DEPOT

R.S R.S R.S R.S

CONSUMER CONSUMER CONSUMER CONSUMER

The distribution network of HUL vending division and unilever food solution is one of the key

strengths that help it to supply most products to almost any place in the country from Srinagar to

Kanyakumari. This includes, maintaining favorable trade relations, providing innovative

incentives to retailers and organizing demand generation activities among a host of other things.

Each business of HUL portfolio has customized the network to meet its objectives. The most

obvious function of providing the logistics support is to get the company’s product to the end

customer.

(HUL) vending division and UFS division has two types of channel selling:

i. Regular (traditional) retail channel,

ii. Direct Selling Channel in the name of Hindustan Lever Network (HLN).

Hindustan Lever Network (HLN)


It is the company's arm in the Direct Selling channel, one of the fastest growing in India today. It

already has about several lakh consultants ‐ all independent entrepreneurs, trained and guided by

HLN's expert managers. HLN has already spread to over 1500 towns and cities, covering 80% of

the urban population, backed by 42 offices and 240 service centres across the country. It presents a

range of customized offerings in Home & Personal Care and Foods.

The New Compensation plan for HLN partners provides new exciting ways of earning substantial

income in addition to offering rewards like revenue sharing through the innovative concept of

“pools “Mother.

Depot and Just in Time System:

In order to rationalize the logistics and planning task, an innovative step has been the formation of

the Mother Depot and Just in Time System (MD‐JIT). Certain C&FAs were selected across the

country to act as mother depots. Each of them has a minimum number of JIT depots attached for

stock requirements. All brands and packs required for the set of markets which the MD and JITs

service in a given area are sent to the mother depo by all manufacturing units. The JITs draw their

requirements from the MD on a weekly or bi‐weekly basis.

HUL has a well entrenched high distribution model which comprises of C&FAs, Redistribution

Stockiest, wholesalers and retailers (as shown earlier). Hindustan Unilever's distribution network

is recognized as one of its key strengths. Its focuses on Product availability, Brand

communication, and higher levels of brand experience.

Redistribution Stockiest:


Sales Margin: 4.76% which includes cash discount, unloading expenses from depot, distribution

expenses to retailers, incentive schemes & other incidental expenses.

LModes of transport used: Rickshaw, tempo.

Incentive schemes: Before 2000 holiday packages and tours but after 2000 no non monetary

incentive for RS.

Software systems and Information System: UNIFY 8.3 (Developed by IBM & CMC). This

software needs to be synchronized daily and the system updates any information/ incentive

schemes / sales figures etc to and from the common shared platform.

Areas of Operations: Marked for each of the RS.

Selling Operations: RSs sells the goods to Wholesaler (gets 1.5 % max. discount from RS )

Recommendation

I would like to recommend these thing that company should improve their distribution channel in summer so every consumer get delivery on time.

As per our sales I recommend one another thing that company if company provides more services to the consumer then it also increase the sales of company product, some of the consumer are not happy with the scheme provided by the company to them, so if company provides more


good schemes or some discount offers to new consumers then they motivated to sell company product

Margin to distributors is low. Company should focus in this direction to pass on more

benefit to the distributors. If margins are increased from 4.76%, distributors will be more

motivated.

In order to compete with local and cheaper brands, company should come up with

competitive products that can cater institutes more effectively and efficiently with a basic

Focus on pricing strategy.

Field force is very limited for this channel; therefore more distributors should be set up in

order to enhance its distribution network.

Since HUL is new in institutional market, Company should come up with promotional

strategies in order to make customers aware and penetrate the marke

Sales Lead gaeneration and management:

Sales lead generatin through cold calling and generating market information was a major part of

my project. Since, market for IBS is highly scattered and is not confined to a particular area,

therefore the sample was divided on the basis of operating channels vis-à-vis hotels,

hospitalscanteens, , railways caters and airport caterers, office caterers,canteens,bakeries,etc.

These sales lead were initially forwarded to prospective officers who then would follow up on the

leads, although after a week of initial study of the market, sales lead generation as well as their

follow up, meeting with the customers and subsequent closure of the deals was handled by me

along with the distributor and the company executive and my mentor.

LIMITATIONS


The study is limited to geographical area of Indore city

Time limit is one of the biggest constraints as the time period of 8 weeks is not sufficient

to the whole catchment area.

The sample size of this study is too small as compared to the total consumer base of

HUL. Therefore, a complete picture of the whole market pattern can’t be expected

through this study.

Trustworthiness of the data is also a great deal of concern.

MY LEARNINGS AND GAINS

Good understanding of the channel flow of products.

Practical approach to the problem.

Developing a better communication and negotiation skills.

Knowledge of business etiquettes.

Rich experience in sales and marketing functions.

Appreciation from company guide for the job.

Gained self-belief and confidence.

Keep patient when you meet different types of customer

If you go in the market for sale the product firstly you have should be proper knowledge

about your product


BIBLIOGRAPHY

There were several sources which provided me with the valuable information about

Hindustan Unilever Limited. This information helped me in enhancing the affectivity

of this presentation.

Some of my valuable sources are:

www.google.com www.yahoo.com

www.hll.comwww.answers.comwww.indiainfoline.comwww.naukrihub.comwww.wikipedia.comwww.businessworldindia.comwww.financialexpress.comwww.indiacoffee.org


http://www.indiacoffee.org/

http://www.financialexpress.com/

http://www.businessworldindia.com/

http://www.wikipedia.com/

http://www.naukrihub.com/

http://www.indiainfoline.com/

http://www.answers.com/

http://www.hll.com/

http://www.yahoo.com/

http://www.google.com/



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Hul Final Report 23

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