A REPORTON
ANALYSING THE COMPETITOR FACTOR AND BOOSTING UP SALES IN GURGAON REGION
Mr. Rakesh Malhotra
A Project undertaken atHindustan Unilever Limited
Plot No. B, Block No. A, South City-I,Delhi – Jaipur Highway, Gurgaon.
Year 2008-10
A PROJECT FORPARTIAL FULFILMENT
FOR AWARDS OF DEEGRE OF MASTER OF MARKETING MANAGEMENT
SUBMITTED BY:SUBMITTED TO:Mr. ANEET MISHRA RAKESH MALHOTRA
SALES EXECUTIVE, OOH INSTITUTE OF MANAGEMENT (HINDUSTAN UNILEVER LIMITED) AND DEVELOPMENT
1
CONTENTS
1. STUDENT CERTIFICATE
2. ACKNOWLEDGEMENT
3. PREFACE
4. EXECUTIVE SUMMARY
5. INTRODUCTION TO INDUSTRY
6. COMPANY PROFILE
7. COMPETITOR PRODUCTS
8. OBJECTIVE OF SUMMER TRAINING
9. RESEARCH METHODOLOGY
10. SWOT ANALYSIS
11. BIBLIOGRAPHY
2
STUDENT CERTIFICATE
Certified that this report is prepared based on the summer internship project
undertaken by me in Hindustan Unilever limited from 4 May to 18 June under
the able guidance of Mr. ROHIT LAL in partial fulfillment of the requirement for
award of deegre of Master of Marketing management from Institute of
Management And Development , New Delhi
Date:
SIGNATURE
3
ACKNOWLEDGEMENT
At the very outset I would like to express my sincere gratitude to HINDUSTAN UNILEVER
LIMITED for providing me with an opportunity to work with them and to undertake this project
on “ANALYSING THE COMPETITOR FACTOR AND BOOSTING UP SALES IN
GURGAON REGION” I Feel proud of getting such opportunity to get myself associated with an
esteemed organization like HINDUSTAN UNILEVER LIMITED.
I feel indebted to MR. ROHIT LAL TERETORY SALES OFFICER (HLL), without whose
consent this project couldn’t have been carried out. I express my sincere gratitude to Mr.
ANEET MISHRA Sales Executive, of HINDUSTAN UNILEVER LTD. Without his guidance
and inspiration this project would not have been possible to complete.
I am highly indebted and thankful to all of them for sparing valuable time from their busy
schedule to provide me constant guidance and cooperation for completing this project.
I am extremely thankful to our respected faculty members of “Institute of Management and
Development” for giving me there wholehearted support, guidance and encouragement to me at
every step of this project. There valuable suggestions and advices have been a constant source of
inspiration to me in completing this project.
I am very keen to express my gratefulness to my friends, family members and classmates for
there tremendous support, contribution and assistance at many steps of this project who made this
difficult task a nice experience.
4
Rakesh Malhotra
PREFACE
This project is a part of the academic curriculum required for the fulfillment of the two years full
time programme, pursuing Post Graduate Programme in “Institute of Management and
Development, New Delhi”
The project called Summer Internship Programme was undertaken at HINDUSTAN
UNILEVER LIMITED. This project aimed at analyzing the Market potential of HUL vending
products with respect to its competitors.
The study was carried out interacting closely with the sales team as well as distributors and
dealers of GURGAON REGION. It also involved face to face interaction between different
customers and corporate individuals.
The project has shown a significant light on the market share of different products under
vending division (Brook bond, Bru coffee, Taj Mahal Tea and some other products) with respect to
its competitors like nestle and Georgia.
Academically, the project provides a unique opportunity to have an exposure to real life
business environment and to have an insight into the management intricacies, thus helping learning
to be more purposeful and meaningful.
5
EXECUTIVE SUMMARY
This project gives a comprehensive idea about the SALES AND DISTRIBUTION
MANAGEMENT of one of the most important business sector in India, the FAST MOVING
CONSUMER DURABLES (FMCG) sector. The project was an endeavor to study the existing
Vending Business and the Lipton’s presence in it. It also tries to analyze Lipton’s pricing,
promotion, the distribution channel and alternatives.
It aims at installation of vending machine in a company and has been executed in
following three stages:
1. Cold calling
2. Meeting respective administration/human resource heads & Negotiations
3. Installation of Lipton vending machine
The task of installing a vending machine gets accomplice after several rounds of
negotiations the respective company representative is made acquainted with the benefit his
organization will get with Lipton. For this, a comprehensive cost-benefit has to be presented to him
to convert the prospect into key account of HUL.
Once an order is placed, the Lipton crew along with the distributor installs the Lipton Vending
Machine. Proper and regular technical support is provided for machine management. The Lipton
team also trains for a smooth operation of the Lipton Vending Machine, which will help to maximize
cuppage. The installation process is divided into 5 stages:
6
1) Pre-delivery inspection at the establishment by the manufacturer’s technician.
2) Pre-installation Survey at the establishment by the installation crew. The crew shall check the
location for Water Source, Electrical Wiring and Fittings, Earthing, Tank and machine
placement- accordingly an estimation of cost shall be provided.
3) All electrical, plumbing and water requirement are addressed before actual installation.
4) After all the necessary checks are made, qualified technicians install the Lipton Vending
Machine.
5) Training of the machine handling personnel to ensure smooth functioning and easy daily
maintenance of the Lipton Vending Machine.
Through the vending machines Hindustan Unilever Ltd. promotes the following three
products:
Tea :
The packet tea market continued to be extremely competitive with national, regional and local
players vying for increased share and volumes Prices of garden tea remained stable during the year,
but have begun to firm up towards the later part of the year. The strategy of investing in building
Brooke Bond as a mega brand to consolidate and strengthen the Company's leadership in the packet
7
tea market helped Brooke Bond maintain its leadership during the year. In 2008, Brooke Bond Taj
Mahal and Brooke Bond Tata were successfully re-launched. Aggressive Brand building support
behind Brooke Bond Red Label Natural Care has established Natural Care as a significant variant
within the portfolio. The focus on brand building, and innovation has helped the Company to sustain
its leadership position in the overall category and exit the year with a growth momentum. Lipton
continued to grow strongly in the Out-of-Home, Vending Channel through acquisition of some
major regional and national clients, and by strong activation at key consumer points. The business
continued to record sustained profitability through its focused brand portfolio and highly streamlined
supply chain and cost management.
Coffee:
The Coffee business had another excellent year, led by strong growth in Instant Coffee. The strategy
to strengthen the brand equity of Bru through clutter breaking and highly visible communication,
coupled with world class activation led to significant share gain further consolidating its leadership
position within the branded coffee market. Bru Cappuccino continues to help Bru recruit new
consumers into its franchise and consolidate Bru's channel leadership particularly in Modern Trade.
The Re. 1 and Rs. 3 low unit price packs continue to contribute significantly to the brand's growth
and drive category expansion. The coffee category, particularly Instant Coffee, continued to be
extremely competitive with national players securing growth in volumes and market share. Ground
and Roasted coffee; predominantly confined to South India, faced competition from local and
8
regional players. There is a perceptible trend of increasing number, of consumers migrating to
instant coffee from roasted and ground coffee due to its inherent convenience.
Soups:
Knorr Soups enjoy a large share in the nascent and small soup market and held that position during
2009. A new range of international quality soups were introduced during the Foods business
delivered a robust performance during 2008. This was on the back of a good 2007, reflecting
sustained momentum in the Kissan, Knorr and Annapurna brands Kissan was relaunched with a new
strategic positioning, improved packaging and a superior formulation, which significantly enhanced
the quality of the product. Simultaneously, the Company focused on improving delivered freshness
of processed foods to consumers with an improved supply year. Simultaneously, a new campaign to
encourage soup consumption at various moments in the day has been well received by consumers
and customers. This will help the business to build volumes through higher consumption.
9
INTRODUCTION TO INDUSTRY
.
Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG), are
products that have a quick turnover and relatively low cost. Consumers generally put less thought
into the purchase of FMCG than they do for other products. Though the absolute profit made on
FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit
on such products can be large.
FMCG Products and Categories
Personal Care, Oral Care, Hair Care, Skin Care, Personal Wash (soaps);
Cosmetics and toiletries, deodorants, perfumes, feminine hygiene, paper products;
Household care fabric wash including laundry soaps and synthetic detergents; household
cleaners, such as dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners,
insecticides and mosquito repellents, metal polish and furniture polish.
Food and health beverages, branded flour, branded sugarcane, bakery products such as bread,
biscuits, etc., milk and dairy products, beverages such as tea, coffee, juices, bottled water etc,
snack food, chocolates, etc.
Frequently replaced electronic products, such as audio equipments, digital cameras, Laptops,
CTVs; other electronic items such as Refrigerator, washing machines, etc. coming under the
category of White Goods in FMCG;
10
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.
Analysis of FMCG Sector
Strengths:
1. Low operational costs
2. Presence of established distribution networks in both urban and rural areas
3. Presence of well-known brands in FMCG sector
Weaknesses:
1. Lower scope of investing in technology and achieving economies of scale, especially in small
sectors
2. Low exports levels
3. “Me-too” products, which illegally mimic the labels of the established brands. These products
narrow the scope of FMCG products in rural and semi-urban market.
Opportunities:
1. Untapped rural market
2. Rising income levels i.e. increase in purchasing power of consumers
3. Large domestic market
4. Export potential
5. High consumer goods spending
11
Threats :
1. Removal of import restrictions resulting in replacing of domestic brands
2. Slowdown in rural demand
3. Tax and regulatory structure
Future Scenario
The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the
economy. A well-established distribution network, intense competition between the organized and
unorganized segments characterizes the sector. FMCG Sector is expected to grow by over 60% by
2010. That will translate into an annual growth of 10% over a 5-year period. It has been estimated
that FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs 92,100 crores in 2010. Hair
care, household care, male grooming, female hygiene, and the chocolates and confectionery
categories are estimated to be the fastest growing segments.
Growth Prospect
With the presence of 16.5% 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
12
expected that the rural income will rise in 2007, boosting purchasing power in the countryside.
However, the demand in urban areas would be the key growth driver over the long term. Also,
increase in the urban population, along with increase in income levels and the availability of new
categories, would help the urban areas maintain their position in terms of consumption. At present,
urban India accounts for 66% of total FMCG consumption, with rural India accounting for the
remaining 34%. However, rural India accounts for more than 40% consumption in major FMCG
categories such as personal care, fabric care, and hot beverages. In urban areas, home and personal
care category, including skin care, household care and feminine hygiene, will keep growing at
relatively attractive rates. Within the foods segment, it is estimated that processed foods, bakery, and
dairy are long-term growth categories in both rural and urban areas.
13
THE TOP 10 COMPANIES IN FMCG SECTOR
Budget Implications on FMCG Sector
The Budget gives more focus on the agricultural/farm sector that will boost the rural income thus
providing better growth prospects to the FMCG companies. With 12.2% of the world population
living in the villages of India, the Indian rural FMCG market is something no one can overlook.
Better infrastructure facilities will improve their supply chain. Also, with rising income and growing
consumerism, FMCG sectors are likely to benefit. Growth potential for all the FMCG companies is
huge as the per capita consumption of almost all products in the country is amongst the lowest in the
world. Further, if these companies can change consumer's mindset and offer new generation
products, they would be able to generate higher growth in the future
1. Hindustan Unilever Ltd.
2. ITC (Indian Tobacco Company)
3. Nestlé India
4. GCMMF (AMUL)
5. Dabur India
6. Asian Paints (India)
7. Cadbury India
8 Britannia Industries
9. Procter & Gamble Hygiene and Health Care
10. Marico Industries
14
COMPANY PROFILE
Hindustan Unilever Limited, erstwhile Hindustan Lever Limited (also called HLL),
headquartered in Mumbai, is India's largest consumer products company, formed in 1933 as Lever
Brothers India Limited. Its 41,000 employees are headed by Mr.Harish Manwani, the non-
executive chairman of the board. HUL is the market leader in Indian products such as tea, soaps,
detergents, as its products have become daily household name in India. The Anglo-Dutch company
Unilever owns a majority stake in Hindustan Unilever Limited.
A number of prominent companies came into the HUL fold as result of Unilever’s international
acquisitions. These included Brooke Bond (1984), Lipton (1972) and Pond’s (1986). In 1993, Tata
Oil Mills Company (TOMCO) merged with HUL. Five years later, HUL and yet another Tata
company, Lakme Limited, formed a 50:50 joint venture, Lakme Lever Limited. Subsequently in
1998, Lakme Limited sold its brands to HUL and divested its 50 per cent stake in the joint venture to
the FMCG giant.
15
The leading business magazine, Forbes Global, has rated Hindustan Lever as the best consumer
household products company. Far Eastern Economic Review has rated HUL as India’s most
respected company. Asia money has rated HUL as one of India’s best managed companies.
Business
HUL’s business activities are divided into four broad areas:
Home & Personal Care
• Personal Wash
• Fabric Wash
• Home Care
• Oral Care
• Skin Care
• Hair Care
• Deodorants & Talcs
• Color Cosmetics
Foods
• Tea
• Coffee
• Branded Staples
• Culinary Products
16
• Ice Creams
• Modern Foods ranges
New Ventures
• Hindustan Lever Network
• Ayush ayurvedic products & services
• Sangam
Exports
• HPC
• Beverages
• Marine Products
• Rice
• Castor
Brands
HUL s brands are household names across the country. They include Lifebuoy, Lux, Surf Excel, Rin,
and Wheel, Fair & Lovely, and Pond s, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond,
Kissan, Knorr-Annapurna and Kwality Wall’s.
Location
HUL products are manufactured in 80 factories. The operations involve over 2,000 suppliers and
associates. HUL s distribution network, comprising about 7,000 redistribution stockiest, directly
covers the entire urban population, and about 250 million rural consumers.
Past Milestones
17
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 Brooke Bond's presence in India dates back to 1900. By 1903, the
company had launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was
formed. Brooke Bond joined the Unilever fold in 1984 through an international acquisition. 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.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 liberalization of the Indian economy, started in 1991, clearly marked an inflexion in
HUL's and the Group's growth curve. Removal of the regulatory framework allowed the company to
18
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. In 1993, it acquired the Kissan business from the UB Group
and the Dollops Ice-cream business from Cadbury India.
As a measure of backward integration, Tea Estates and Doom Dooma, two plantation companies of
Unilever, were merged with Brooke Bond. 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
19
Frozen Desserts. By the end of the year, the company entered into a strategic alliance with the
Kwality Ice-cream Group families and in 1995 the Milk food 100% Ice-cream 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 Pasteurized Crabmeat business of the Amalgam
Group of Companies, a leader in value added Marine Products exports.
Chronology
YEAR MILESTONES1888 Sunlight soap introduced in India.1895 Lifebuoy soap launched; Lever Brothers appoints agents in Mumbai, Chennai, Kolkata,
and Karachi.1902 Pears soap introduced in India.1903 Brooke Bond Red Label tea launched. 1905 Lux flakes introduced.1913 Vim scouring powder introduced.1914 Vinolia soap launched in India.1918 Vanaspati introduced by Dutch margarine manufacturers like Van den Berghs, Jurgens,
20
Verschure Creameries, and Hartogs. 1922 Rinso soap powder introduced. 1924 Gibbs dental preparations launched.1925 Lever Brothers gets full control of North West Soap Company.1926 Hartogs registers Dalda Trademark.1930 Unilever is formed on January 1 through merger of Lever Brothers and Margarine Unie.1931 Hindustan Vanaspati Manufacturing Company registered on November 27; Sewri
factory site bought.1932 Vanaspati manufacture starts at Sewri.1933 Application made for setting up soap factory next to the Vanaspati factory at Sewri;
Lever Brothers India Limited incorporated on October 17.1934 Soap manufacture begins at Sewri factory in October; North West Soap Company's
Garden Reach Factory, Kolkata rented and expanded to produce Lever brands.1935 United Traders incorporated on May 11 to market Personal Products.1937 Mr. Prakash Tandon, one of the first Indian covenanted managers, joins HVM.1939 Garden Reach Factory purchased outright; concentration on building up Dalda
Vanaspati as a brand.1941 Agencies in Mumbai, Chennai, Kolkata and Karachi taken over; company acquires own
sales force.1942 Unilever takes firm decision to "train Indians to take over junior and senior management
positions instead of Europeans".1943 Personal Products manufacture begins in India at Garden Reach Factory.1944 Reorganization of the three companies with common management but separate
marketing operations.1947 Pond's Cold Cream launched.1951 Mr. Prakash Tandon becomes first Indian Director. Shamnagar, Tiruchy, and Ghaziabad
Vanaspati factories bought.1955 65% of managers are Indians.1956 Three companies merge to form Hindustan Lever Limited, with 10% Indian equity
participation.1957 Unilever Special Committee approves research activity by Hindustan Lever.1958 Research Unit starts functioning at Mumbai Factory.1959 Surf launched.1961 Mr. Prakash Tandon takes over as the first Indian Chairman; 191 of the 205 managers
are Indians.1962 Formal Exports Department starts.1963 Head Office building at Back bay Reclamation, Mumbai, opened.1964 Etah dairy set up, Anik ghee launched; Animal feeds plant at Ghaziabad; Sunsilk
shampoo launched.1965 Signal toothpaste launched; Indian shareholding increases to 14%.1966 Lever's baby food, more new foods introduced; Nickel catalyst production begins;
Indian shareholding increases to 15%. Statutory price control on Vanaspati; Taj Mahal tea launched.
1967 Hindustan Lever Research Centre, opens in Mumbai.1968 Mr. V. G. Rajadhyaksha takes over as Chairman from Mr. Prakash Tandon; Fine
Chemicals Unit commissioned at Andheri; informal price control on soap begins.
21
1969 Rin bar launched; Fine Chemicals Unit starts production; Bru coffee launched1971 Mr. V. G. Rajadhyaksha presents plan for diversification into chemicals to Unilever
Special Committee - plan approved; Clinic shampoo launched.1973 Mr. T. Thomas takes over as Chairman from Mr. V. G. Rajadhyaksha.1974 Pilot plant for industrial chemicals at Taloja; informal price control on soaps withdrawn;
Liril marketed.1975 Ten-year modernization plan for soaps and detergent plants; Jammu project work
begins; statutory price control on Vanaspati and baby foods withdrawn; Close-up toothpaste launched.
1976 Construction work of Haldia chemicals complex begins; Taloja chemicals unit begins functioning.
1977 Jammu synthetic Detergents plant inaugurated; Indian shareholding increases to 18.57%.
1978 Indian shareholding increases to 34%; Fair & Lovely skin cream launched.1979 Sodium Tripolyphospate plant at Haldia commissioned.1980 Dr. A. S. Ganguly takes over as Chairman from Mr. T. Thomas; Unilever shareholding
in the company comes down to 51%.1982 Government allows 51% Unilever shareholding.1984 Foods, Animal Feeds businesses transferred to Lipton.1986 Agri-products unit at Hyderabad starts functioning - first range of hybrid seeds comes
out; Khamgaon Soaps unit and Yavatmal Personal Products unit start production.1988 Launch of Lipton Taaza tea.1990 Mr. S. M. Datta takes over as Chairman from Dr. A. S. Ganguly.1991 Surf Ultra detergent launched.1992 HUL recognised by Government of India as Star Trading House in Exports.1993 HUL's largest competitor, Tata Oil Mills Company (TOMCO), merges with the
company with effect from April 1, 1993, the biggest such in Indian industry till that time. Merger ultimately accomplished in December 1994; Launch of Vim bar; Kissan acquired from the UB Group.
1994 HUL forms Nepal Lever Limited, HUL and US-based Kimberley-Clark Corporation form 50:50 joint venture - Kimberley-Clark Lever Ltd. - to market Huggies diapers and Kotex feminine care products. Factory set up at Pune in 1995; HLL acquires Kwality and Milkfood 100% brand names and distribution assets. HLL introduces Wall's.
1995 HUL and Indian cosmetics major, Lakme Ltd., form 50:50 joint venture - Lakme Lever Ltd.; HUL enters branded staples business with salt; HLL recognized as Super Star Trading House.
1996 Mr. K. B. Dadiseth takes over as Chairman from Mr. S. M. Datta; Merger of Group company, Brooke Bond Lipton India Limited, with HLL, with effect from January 1; HUL introduces branded aatta; Surf Excel launched.
1997 Unilever sets up International Research Laboratory in Bangalore; new Regional Innovation Centers also come up.
1998 Group company, Pond's India Ltd., merges with HUL with effect from January 1, 1998. HUL acquires Lakme brand, factories and Lakme Ltd.'s 50% equity in Lakme Lever Ltd.
2000 Mr. M. S. Banga takes over as Chairman from Mr. K. B. Dadiseth, who joins the Unilever Board; HUL acquires 74% stake in Modern Food Industries Ltd., the first
22
public sector company to be disinvested by the Government of India.
2002HUL enters Ayurvedic health & beauty centre category with the Ayush range and Ayush Therapy Centers.
2003Launch of Hindustan Lever Network; acquisition of the Amalgam Group
2005Launch of "Pureit" water purifiers
Management 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 and Group companies have about 16,000 employees, including 1200 managers.
The fundamental principle determining the organization structure is to infuse speed and flexibility in decision-making and implementation, with empowered managers across the company's nationwide operations. For this, HUL is organized into two self-sufficient divisions - Home & Personal Care & Foods - supported by certain central functions and resources to leverage economies of scale wherever relevant.
Board Divisions Central functions Businesses
Board of Directors/ Key Personnel
Mr. Harish Manwani ChairmanMr Douglas Baillie CEO & MD Mr Sanjiv Kakkar Executive Director sales & customer developmentMr Nitin Paranjpe Executive DirectorMr Ashok Gupta Executive Director LegalMr Dharal Buch Executive Director supply chainMr D.S Parerkh DirectorMs Leena Nair Executive Director HR Mr Shreejit mishra Executive DirectorMr D. Sundaram Vice chairman
23
Sales and income break-up from different business activities of Hindustan Unilever Ltd. :(Values in crores)
(Source: www.hul.com)
PBIT Break-up:
(Values in crores) (Source: www.hul.com)
24
HINDUSTAN UNILEVER LOGO
Logo of Hindustan Unilever Is Contaning 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.
SUN : Our primary natural resource. All life begin with this
25
Ultimate symbol of vitality.
DNA : Double helix, the genetic blueprint of life & a symbol of bioscience. It is the key to a
healthy life. While the sun is the biggest source of life,dna is the smallest
SPOON : A symbol of nutrition , tasting & cooking.
BOWL :A bowl of delicious smelling food. it can also represent a ready meal , hot drink or soup
SPICE & FLAVOUR : Represent chillie or fresh ingredient.
FISH : Representing food, sea or fresh water.
SPARKLE : Clean healthy & sparkling with energy.
SAUCE OR SPREADS : Represents mixing or string. It suggest blending in flavor &
adding taste
BEE : Representing creation , pollination, hard work & bio diversity’s bee symbolizes both
envoirmental challenges and opportunities.
HAND & FLOWER : Hand symbolizes sensitivity care & need .it represent skin & touch. &
flowers , fragrance .when seen with hand , it represents moisture or cream.
ICECREAM : A treat ,pleasure & enjoyment.
LIPS : represent beauty ,looking good & taste.
HAIR : A symbol of beauty & good looking. Placed next to the flower it evokes cleanliness &
fragrance ; placed near the hand it suggest softness.
PALM TREE : A nurtured resources. It produces palm oil as well as many fruits –
coconuts ,bananas & dates. And symbolises paradise.
BIRDS : A symbol of freedom . it suggest a relief from daily chores, & getting more out of life.
RECYCLE : A part of our commitment to sustainability.
PARTICLES : A references to science ,bubbles & fizz.
26
TEA : A plant or extract of a plant ,such as tea. Also a symbol of growing & farming.
FROZEN : The plant is a symbol of freshness, the snowflakes represent freezing. A
transformational symbol.
LIQUID : A reference to clean water & purity.
WAVE : Symbolises packaging – a pot of cream associated with personal care.
CLOTHES : Represents fresh laundry & looking goods.
HEARTS : A symbol of love , care & health.
OUT – OF – HOME 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!
27
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 Pragti 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!
28
“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 constitutes 70% of
retail volume sales, compared to coffee and other hot drinks with 4.4% and 26% shares respectively.
Retail sales volume in year 2006
(Source: www.answers.com)
29
India accounts for 26% of the total production of world’s tea and 4.6% of that of world’s coffee.
World’s coffee production in year 2006
(source:www.financialexpress.com)
World’s tea production in year 2007
(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.
The brand war
HUL Tata Tea
Premium leaf tea market (Rs 200-220/ kg)
Taj Mahal, Yellow Label and
Tetley Temptations
30
Green Label
Premium dust category (Rs 180-200 per kg) Three Roses and Top Star Chakra Gold
Medium leaf sector (Rs 140-180 per kg Red Label and Taaza Tata Tea Premium
Medium dust category (Rs 130-180 per kg) Taaza, Super
Tata Tea Premium, Kanan Devan and Gemini
Popular or economy category (Rs 120-140 per kg) A-1 and Tiger Agni Sholay
Economy dust teas (Rs 120-130 per kg) A-1 and Ruby Agni and Leo
Packet Tea 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
31
Rajasthan and CTC broken in others states of the North. The Central India is predominantly a dust
market.
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
relaunched, with a new identity, communication and modern pack formats. Superior activation,
penetration building activities and investment in strategic channels, like Out-of-Home, is
32
contributing to the growth. Bru, as a franchise, has been strengthened with the filter coffee brand,
Deluxe Green Label, relaunched 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)
Attitude of Indian Coffee Consumers
33
(www.indiacoffee.org) Penetration (Beverage consumed in the past 12 months) of coffee at 59% is low compared
to that of tea.
Penetration of filter coffee is highest in South India
In the Rural areas (South India) instant coffee has a higher level of penetration than filter
coffee.
Consumption of coffee is relatively lower with 19% consuming it when compared to 85% for
tea. Consumption was the highest in the South at 31 % while it ranges between just 35% in
the weak coffee zones of North, East and South.
Yesterday's consumption is the highest among the 15-24 and 35-44 age group.
When compared to consumption of other beverages yesterday, coffee comes in third, after tea
and plain milk. Among other beverages, buttermilk, natural beverages and Carbonated Soft
Drink are more popular with more than 10% of respondents consuming these beverages
yesterday.
Coffee is consumed as a first cup only by 23% of coffee drinkers even in the traditional
market of the South.
Per capita consumption of coffee (among all respondents - both drinkers and non drinkers) is
0.33 cups against 1.77 cups for tea. However, coffee consumption among drinkers at 1.76
cups compares favorably with that of tea at 2.1 cups..
The proportion of non-drinkers is the highest in the oldest age group of 55+ years. Amongst
coffee consumers in the rural areas, a majority (43% of all adults) is light drinkers,
consuming 1-2 cups everyday. About a fifth of rural consumers consume coffee occasionally.
34
HISTORY OF VENDING MACHINES
Automated retailing through vending machines is a concept that has been exploited by
entrepreneurs around the world for over four decades. India, however, is relatively virgin market
though with huge potential. Vending may be considered as a new concept in India, but it has
been in existence for thousands of years.
VendingTimeline
Details
215 B.C. Device to dispense holy water used in temples of Egypt, described by Mathematician Hero, who lived in Alexandria.
1076 A.D The Chinese produce a coin operated pencil vendor.1700s Coin operated boxes appear in English taverns.1886 U.S grants several patents for coin operated dispensers.1888 Thomas Adams company installs Tutti Frutti gum machines on New York
elevated train platforms.1902 Horn and Hardart Baking Company opens automatic restaurant in
Philadelphia.1905 U.S post office begins to use stamp vendors.1920s First commercial cigarette vending machine enters the market.1930s Bottled soft drink machines, cooled with ice, appear on market.1936 National Automatic Merchandising Association is founded.1946 Invention of first coffee vendors leads to use of vending machines for
coffee breaks.1950 First refrigerated sandwich vendors expand lunch venue.1957 U.S Public Health Service approves Model Vending Sanitation Code, and
NAMA establishes industry’s first evaluation programmed certify vending equipment.
1960 Dollar bill changers are added to vending banks.1980 Electronic components applied to vending machines.1985 Credit card/debit card services for vending machines introduced.1986 100th anniversary of vending machines in U.S.1991 Flavored coffee, espresso and cappuccino introduced in machines.1993 First remote ireless transmission of data from machines to warehouse.1999 New dollar coin introduced by U.S mint
A GLIMPSE OVER THE ACHIEVEMENT OF HLL VENDING DIVISION
35
More than 25000 installations across 100 towns serving over a billion
cups of beverages per annum and growing.
Customized solutions for a wide array of needs from mall to offices to
factories and hotels.
Support for 24/7 operations, including some of the biggest bpo’s,
companies and banks.
Solutions for all offices ranging from 10 to 10000 people and at remote
locations.
PRODUCT AND MACHINE RANGE
LIPTON – THE TEA AND COFFEE RANGE
An 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:-
TEA: -
PLAIN TEA, CARDAMOM TEA, HOT LEMON, TEA BAG TEA.
COFFEE: -
36
BRU PLAIN COFFEE, CHOCO ALMOND, BRU DIET COFFEE, CAPPUCCINO SPECIAL
COFFEE.
COLD RANGE: -
BRU COLD COFFEE (FRAPPUCINO), LIPTON ICE TEA (LEMON, PEACH).
SOUP RANGE: - KNORR TOMATO SOUP
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:
5 LANE HIGH SPEED HOT
A machine that caters to large volumes of consumption in the shortest delivery time, it can dispense
20 cups a minute.
Suitable for factories, offices and theaters with limited breaks to serve the beverages.
37
2. SMART CARD MACHINE
It’s all in your hands. You can decide who gets how much beverage each day. You can create a
budget as per the requirement of each department in an organization.
Expand your choice with a wide range of tea and coffee products that tingle your taste buds. All available at your finger tips from a single machine.
38
FRESH BREW MACHINE
It can serve both fresh fresh coffee bean and instant premix based coffee and tea beverages.
Since it lets the user decides the levels of milk and sugar for their drink.
It provides all the needed convenience for a mid sized work area.
Truly dependable.
It is beneficial for that organization where the number of staff is less.
4 LANE HOT
39
It provides all the needed convenience for a mid sized work area.
Truly dependable.
It is beneficial for that organization where the no. of staff is between 200-400 employees.
2 LANE HOT
It provides all the needed convenience for a mid sized work area.
Truly dependable. It is beneficial for that organization where the number of staff is less.
Machine Specifications
PARAMETERS TWO LANE FOUR LANE FIVE LANESIX LANE
Dimensions in mm (L*B*H)
635*270*540 635*445*545 890*440*585 645*445*580
Machine weight (Kg.) 30 42 60 35
Water Tank Capacity(external Pet Tank)
1.5 ltr. 1 ltr. 1 ltr. 1 ltr.
40
Canister capacity 1.5 Kg 1.2 Kg 1.2 Kg 1.2 Kg
No. Of Variants 2 choice 4 Choice 5 Choice 6 Choice
Dispensing Rate (Cups/min.)
5 5 10 5
Power Supply (input) 220V AC, 50Hz
220V AC, 50Hz
220V AC,50Hz
220V AC, 50Hz
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.
PARAMETERS EIGHT LANE FRESH BEAN LANE HOT SMART CARD
Dimensions in mm (L*B*H) 715*500*550 1830*600*650 645*445*545
Machine weight (Kg.) 38 165 12
Water Tank Capacity(external Pet Tank)
1.5 ltr.1 ltr. 1 ltr.
Canister capacity 1.2 Kg 3.0 Kg 1.2 Kg
No. Of Variants 8 choice 6 Choice 4 Choice
Dispensing Rate (Cups/min.) 5 2 5
Power Supply (input) 220V AC, 50Hz 230V AC, 50Hz 230V AC,50Hz
41
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
42
customer care phone no. is provided for any queries and assistance on the Lipton Vending
Machine.
Rate List of Hindustan Unilever Ltd’s Product Range
PRODUCT & PACKSIZE Rate Qty Per Cup
Per Kg Premix Water Cup
Gms ml Rs. Lipton Dairy Normal Sugar 1Kg 125 10 92 1.25Taj Mahal Tea Bags 100s units 0.65 0.65Cost per cup with Taj Mahal Tea Bag 1.90 Lipton Dairy Whitener Plain W/O Sugar 750g 160 6 92 1.28Taj Mahal Tea Bag 0.65 0.65Cost per cup with Taj Mahal Tea Bag 1.93
Lipton Dairy Whitener Diet 750g 150 8 92 1.86Taj Mahal Tea Bag 0.65 0.65Cost per cup with Taj Mahal Tea Bag 2.53
Lipton Cardamom Tea 1 Kg 200 12.5 92 2.00
Lipton Hot Lemon Tea 1 Kg 150 10 97 1.50 Bru Coffee Premix Normal Sugar 1 Kg 172 12.5 92 2.12Bru Choco Almonds 1 Kg 180 12.5 92 2.00Bru Coffee Premix Diet 750g 200 8 92 1.60
43
Knorr Tomato Soup 1Kg 365 6 100 2.19
DISTRIBUTION CHANNEL
FACTORY
DEPOT DEPOT
R.S R.S R.S R.S
CONSUMER CONSUMER CONSUMER CONSUMER
you don’t known how much people are buying pears,lux & fair & lovely but in OOH company directly touching the customer & they know how much consumption is there. In the distribution channel of vending machine retailer doesn’t play part after the Redistribution Stockiest (R.S.) consumer can avail the product.
44
COMPETITOR PRODUCTS
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
45
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
Coffee Day sources coffee from 10000 acres of coffee estates, the 2nd largest in Asia, that is owned
by a sister concern and from 11,000 small growers. It is one of India’s leading coffee exporters, with
clients across the USA,Middle East Europe and Japan.
(2) FRESH & HONEST
Till 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.
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.
(3) TATA TEA
Another competitor of Hll is Tata with its brand Tetley.
46
Tata Coffee Limited, one of the worlds largest integrated
coffee company. The company earlier known as Consolidated Coffee was renamed as
Tata Coffee with the merger of Coffee Land and Asian Coffee.
Tetley has been a member of the Tata Group since March 2000
and today contributes around two-thirds of the total turnover of Tata Tea. The company is a joint
venture between Tata Tea, which produces 40 million kg of tea per annum at its gardens, and the
UK-based Tetley Group, a tea blender and tea bag producer of international repute. The Tata-Tetley
combine offers a wide range of international quality products, such as round tea bags, string and tag
tea bags, and packet tea.
LEMON TEA PREMIX, CARDOMOM TEA, DAIRY WHITENER, TETLY TEA BAGS
COFFEE
COFFEE PREMIX, COFFEE BEANS, 100% COFFEE POWDER
VENDING MACHINE & THEIR FEATURES
SINGLE OPTION—simple-sleek, detachable drip tray, hot water facility.
47
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 Nestlé
48
Nestlé 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.
Nestlé is committed to the following Business Principles in all countries, taking into account local
legislation, cultural and religious practices:
Nestlé's business objective is to manufacture and market the Company's products in such a way as to
create value that can be sustained over the long term for shareholders, employees, consumers, and
business partners.
Nestlé does not favor short-term profit at the expense of successful long-term business development.
Nestlé recognizes that its consumers have a sincere and legitimate interest in the behavior, beliefs
and actions of the Company behind brands in which they place their trust and that without its
consumers the Company would not exist.
Nestlé believes that, as a general rule, legislation is the most effective safeguard of responsible
conduct, although in certain areas, additional guidance to staff in the form of voluntary business
principles is beneficial in order to ensure that the highest standards are met throughout the
organization.
Nestlé is conscious of the fact that the success of a corporation is a reflection of the professionalism,
conduct and the responsible attitude of its management and employees. Therefore recruitment of the
right people and ongoing training and development are crucial.
Nestlé continues to maintain its commitment to follow and respect all applicable local laws in each
of its markets.
TEA
NESTEA TEA BAGS, INSTANT TEA PREMIX ( Cardamom Flavor), INSTANT
49
TEA PREMIX (Plain Tea), LEMON TEA, DAIRY WHITENER, EVERYDAY SUGAR FREE
COFFEE
NESCAFÉ PREMIX, NESCAFE LOW SUGAR, CAPPUCCINO, MOCHACINO.
MAGGI TOMATO SOUP
COMPETITOR’S PRICES
(NESTLE, GEORGIA)
GEORGIA
Product Name Rate SpecificationGeorgia 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 RateSpecification
Nescafe Coffee Premix 185.00 Per kg (Approx. 80 cups)Nescafe Low Sugar Premix 200.00 Per Kg (Approx. 80 cups)Nescafe Classic 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 KgNestea Lemon / Peach Premix 98.00 Per 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 BagCreamer 3Gm 101.83 Per Case( 24pkt)
50
Paper Beaker 150 Ml 0.45 Per BeakerPlastic Beaker 150 Ml 0.50 Per BeakerSugar Powder 43.50 Per KgSugar Cube [Economy Pack] 42.00 Per kg
OBJECTIVE OF TRAINING
An attempt has been made to fulfill the following objectives:
(i) Finding new opportunities for the vending services 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.
(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.
RESEARCH METHODOLOGY
RESEARCH DESIGNA Sample Design is definite plan for obtaining a sample from given population. it refer to technique
or procedure the research would adopt in selecting item for the sample.
SAMPLE PLAN FOR SURVEYSAMPLE UNIT - Institutional & Factories.
SAMPLING AREA – Okhla, Gurgaon & Manesar.
SAMPLE SIZE - 300
51
DATA COLLECTION – Through Questionnaire
Further I have divided the whole gurgaon in five par
1. UDYOG VIHAR
2. SECTOR 18
3. SECTOR 32
4. MANESAR
5. OTHERS (CYBER GREEN, DLF SQUARE, MODI TOWER, OKHLA PH-1,2,3etc.)
1. PRIMARY SOURCES
Primary data are gathered for a specific purpose or for a specific research project. In this project, the data I
have collected is regarding the use of vending machines by having interactions with the HR person,
ADMIN. HEAD, and the purchase manager that which machine they are using whether it is nestle,
Georgia, Lipton and with the help of which market share of each company is calculated.
2. SECONDARY SOURCES
In this purpose secondary Data is useful to collecting the various information about
Companies like telephone no. addresses etc. so I have consulted telephone directory &
Informative websites.
Primary data was collected through the survey done by the questionnaires.
Questionnaires are the most reliable method of primary data collection.
More than 200 companies were surveyed in the Gurgaon City on a random choice basis.
52
Customer interaction was done at canopy, door step and in the market and other public
places.
I enumerate the data and they were converted into frequency distribution.
DATA INTERPRETATION: through these frequency distributions graphs & charts
were made for further analysis. These were used to draw the conclusions of the survey.
LIST OF ACCOUNTS VISITED
CompanyConern Person Address Contact no.
No. of Employees
coffee machine Response Mail Id
Energgy Infrastructure Group
Bachittar Singh
Cyber City DLF Building 9 4391111 50
Café Coffee Day
Need Crushed Beans NA
HyattSanjeev Kumar
Cyber City DLF Building 9 4731234 12
Electric Cattle Negative NA
Feed Back Ventures Nidhi Sodhi
Cyber City DLF Building 9 4169100 3 Nestle Negative NA
Shriram Insuarance …….
Cyber City DLF Building 9 4316000 20
Electric Cattle Negative NA
Heidrick & Struggles
Shailender kaur
Cyber City DLF Building 9 4655300 25 Georgia Negative NA
CovidentShilpi kaushik
Cyber City DLF Building 9 4709800 15 Georgia Negative NA
WrigleyGaurav Joshi
Cyber City DLF Building 9 3946789 60
Café Coffee Day ……… NA
German Center
Sanjay Kumar
Cyber City DLF Building 9 9971696974 6 ……. Negative NA
Philips Anil YadavCyber City DLF Building 9 4606000 600
Café Coffee Day Mail [email protected]
UOP ……..Cyber City DLF Building 9 4031361 300
Fresh & Honest Negative NA
Pfizer GovindCyber City DLF Building 9 3023900 20 Nestle ……. NA
DLF Pramerica Life Insuarance
Sushil Mahla
Cyber City DLF Building 9 4697000 400
Café Coffee Day Mail [email protected]
Johnson & Johnson
Preety Dahiya
Cyber City DLF Building 9 4781700 40 Georgia Positive [email protected]
MitsubishiPuneety Thapyal
Cyber City DLF Building 9 4630300 5
Fresh & Honest Negative NA
Cholamandalam Gurpreet
Cyber City DLF Building 9 3005000 70 Nestle Positive NA
Maquirie ……Cyber City DLF Building 9 4813000 90
Fresh & Honest Negative NA
Itx Trading HimaniCyber City DLF Building 9a 3067900 30 Pantry Negative NA
53
Business Octane ….
Cyber City DLF Building 9a 39884088 60 Nestle Negative NA
FujitsuSona Rupani
Cyber City DLF Building 9a 4705125 40 Georgia Mail [email protected]
Carefour Group Karun Joshi
Cyber City DLF Building 9a 4752000 150 Nestle Positive
Hilton Hotels Petric KerrCyber City DLF Building 9a 3067600 50 Georgia Negative NA
Next AjayCyber City DLF Building 9a 4670100 50 Georgia ….. NA
Helman world ide L walter
Cyber City DLF Building 9a 4516700 35 Nestle Negative NA
Smart analyst RajeevCyber City DLF Building 9a 4313800 150 Godrej …. NA
Egon Zehndor International ……..
Cyber City DLF Building 9a 4638000 25 Georgia …….. NA
CSAV DeepakCyber City DLF Building 9a 4509000 500 Lipton …….. NA
Ericsson
Rajesh Mehendiratta
Cyber City DLF Building 9a 2560808 8000
Café Coffee Day ……. NA
Nokia Siemens Network Arpan
Cyber City DLF Building 9a ……. 1000 Nestle …….. NA
MaerskRakesh srivastava
Cyber City DLF Building 9a 3361400 120
Café Coffee Day …… NA
IgniteRakesh Kumar
Cyber City DLF Building 9a 4218891 10 ……… ………. NA
IMG RajenderanCyber City DLF Building 9a 4578900 40
Café Coffee Day ………… NA
Hatch …….Cyber City DLF Building 9a …… 35
Café Coffee Day Negative NA
OrangeRuchi Sehgal
Cyber City DLF Building 8b 4358003 1300 VPJ ……………. NA
Bank Of America ……..
Cyber City DLF Building 8b …….. … …… ……… NA
Serco GhoshCyber City DLF Building 8b 4009300 150 Lipton ……… NA
RBSUrmi Karmakar
Cyber City DLF Building 8b 9711303253 170 Nestle Positive [email protected]
Accenture RijaniCyber City DLF Building 8b 4520000 ……
Café Coffee Day …….. NA
Bain & company Ambika
Cyber City DLF Building 8b 4541800 100 …. …… NA
Sunrider India Pvt. Ltd. Satish
udyog Vihar Phase 3 Plot n.795 4005070 5 …….. ……. NA
Estel Technology
B.R. Kundlas #126 sec 44 2587200 150 Lipton ……. NA
K&A Partners B K house
Sarvari ghosh #109 Sec 44 4708700 125
Electric Cattle …….. NA
Bestech India Pvt. Ltd. Anil Gupta #124 Sec 44 4540000 80 Pantry ……. NA
Ram prastha Bindra #114 Sec 44 4333444 30 Nestle ……. NA
One Shield Sashidhar #121 Sec 44 9818355539 40 ……. Positive [email protected] Consultant Pvt. Ltd. Mala #121 Sec 44 4647777 30 Lipton …….. NA
Biby Financial …….. #121 Sec 44 …….. …… ……. ……. NA
54
Services
LT Foods Satish Rai #119 Sec 44 3055100 70Café Coffee Day Positive [email protected]
Synthes Manjit Kaur Sec 44 464700 60 Pantry Negative NA
J & K BankSanjeeva Kaul Sec 44 9810302255 …….. ….. ……. NA
More Ajay Jha #105 sec 44 9871509396 800Fresh & Honest Positive ajaykumar(adminsupport)[email protected]
People Strong Harbinder #105 sec 44 9811571888 150 Nestle Lipton (2) [email protected]
LIC ……. Sec 44 2571294 70 Pantry Positive NA
Whirlpool ….. Sec 44 4591300 250 Lipton …… NA
Intec house Sec 44 4698500 400Café Coffee Day Negative NA
Institue Of Public Health ………. Sec 44 4744100 190 …… … NA
Unitech Machine Ltd.
Umesh Panjani #35b Sec 44 4326444 300 Pantry ……… NA
Accor Hospitality
Sudharsha inbasekaran #86 sec 44 999906612 100 ……. ….. [email protected]
desiya ……… #121 Sec 44 4626900 …….. …… …….. NAOutsource Partners International Murlitharan
Unitech Cyber Park Tower c 4727777 30 Lipton ……. NA
Egon Zehndor International
Abraham Justus
Unitech Cyber Park Tower c 9717050047 140
Café Coffee Day Positive NA
Huawei ManishUnitech Cyber Park Tower c 4774700 500
Fresh & Honest …….. NA
IBM SachinUnitech Cyber Park Tower c 4593800 3500 Lipton …. NA
United Health Group Karan
Unitech Cyber Park Tower c 3095819 3000 …….. Positive [email protected]
Eicher energy Infrastructure Babu
Unitech Cyber Park Tower B 16 ffloor 4530700 100 Nestle ………… NA
Balden ms. RituUnitech Cyber Park Tower B 16 ffloor 4509999 20 ……. …….. NA
Intercontinental Hotels Group
Ms. Shalini Tiwari
Unitech Cyber Park Tower B 11 ffloor 4551111 20 …….. ………….. NA
EvalueserveDinesh Dhall
U. C. P. Tower B 3 Floor 4154000 400 Georgia ………… NA
DLF Laing 'o' Rourke Davinder
U. C. P. Tower B 2 Floor 4615555 120 Nestle Positive NA
InterfaceAshish Sharma
U. C. P. Tower B 1 Floor 4683777 30 Nestle Positive [email protected]
Kuoni NavneetU. C. P. Tower B 1 Floor 4627700 70 Lipton ………… NA
Hewitt UrmiaU. C. P. Tower A 6 Floor 4137000 2000 Nestle ………. NA
VertexHarneet Singh
U. C. P. Tower A 5 Floor 4106600 400 …… ………. NA
Keane India Ltd.
Baljeet Singh
Unitech Trade Center, Sec 43, Sushant lok 1 4127000 2000 Nestle …………. NA
55
Convergys ……..Unitech Trade Center, Sec 43, Sushant lok 1 4723000 1200 Nestle ………. NA
Green Field ……Unitech Trade Center, Sec 43, Sushant lok 1 4126700 250 Lipton ………… NA
Honey WellAshwani Singh
Unitech Trade Center, Sec 43, Sushant lok 1 9871186291 150 …….. ……………. NA
Adi Global Distribution neha
Unitech Trade Center, Sec 43, Sushant lok 1 6715200 40
Fresh & Honest Positive NA
Msoft SystemsBharti Mehta
Unitech Trade Center, Sec 43, Sushant lok 1 4040001 35
Café Coffee Day Positive NA
JSAAnjleena paul
Park Plaza Hotel, Sec 43, Sushant lok 1 9971285400 90 …….. Positive [email protected]
Okuma India Pvt. Ltd.
Sunil Kumar
Sushant lok1 Time Square 4699912 10 Pantry ………. NA
FemellaSummit Chaudhary
Sushant lok1 Time Square 4719900 50 Pantry ……. NA
Silverglades GopalSushant lok1 Time Square 4550300 40 Georgia ……. NA
IMA preetySushant lok1 Time Square 4590200 25 Pantry ……… NA
monster.com Ram murtiSushant lok1 Time Square 4112211 30
Café Coffee Day …….. NA
You Telecom Vijay palSushant lok1 Time Square 4075501 40 Lipton ……. NA
MA Foi Global ParkashSushant lok1 Time Square 4146343 20 Lipton …….. NA
OSRAMSushil Rattan
Sushant lok1 Time Square 4047118 40
Café Coffee Day ……… NA
GlobusArun / Tanushree
Sushant lok1 Time Square 4159200 25 Pantry …….. NA
Levi Straus Priyanka Signature Tower A 4304631 40Café Coffee Day …….. NA
Great Eastern Energy corporation Pvt. Ltd. …….. Signature Tower A 2580470 20 Godrej ……. NA
Hay groupAmrita Arora Signature Tower A 4177400 35 Georgia ……. NA
SCA technologies
Ajay Kumar Verma Signature Tower A 2381345 30 Georgia ……… NA
Reebok IndiaSaji Khurwila Signature Tower A 4124100 300
Café Coffee Day ….. NA
Reckitt Benkiser R. Bishop Signature Tower A 4204500 60 ……. …….. NA
Lintas Krishna Signature Tower A 9871433583 250 Nestle ……. NA
Vaish Associates
Seema kaushik Signature Tower A 4541000 10 Nestle ….. NA
KotraSanjeev Mahanti Signature Tower A 4628500 22 Lipton ……. NA
UnitechSatish Mishra Signature Tower A 4552023 35 …….. Negative NA
56
EDAG Raghu Signature Tower A 4323232 …… .. … NA
Skoda Auto Manpreet Signature Tower A 3351111 15 Lipton ….. NA
ANALYSIS AND FINDING
There are 7 channel of distribution of vending machine.
1) INSTITUTION : The main business of company is coming from institution which includes call
centers, offices, cooperates. The 70-80% of business is coming from institutions. In institution where
white collar people work you can expect decency in using machine from them. Key institutions are
Daksh, Satyam, L&T, Bsnl, TCS etc.
2) FACTORY : The 5-10% of business is coming from factories, govt. offices etc. Company supply
premixes in bulk. In factories blue collar people work they can’t handle machine properly.
3) ENTERTAINMENT & LEISURE: Third channel of distribution is entertainment which includes
malls, multiplexes, cinema halls, fast food chain etc. in E&L company focus on branding like is ties
up with several accounts like PVR, CHANKYA, FUN CINEMA, etc. Company spends 25 lakh in
PVR for branding. Only 1-2% of business is coming from this part.
EATING & DRNKING : In E&L company is getting only 1-2-% of business. In this part
company work only work on visibility.
57
4) HEALTH CHANNEL : In health Channel Company mainly focus in nursing home, hospital.
Company mainly focus on hygiene factor if they find appropriate if install it there otherwise
not.
6) TRAVEL: In travel part we deal in Airport, Railway station, Bus stand, Taxi stand. Company has
ties up with Delhi Metro Corporation.
7)HOTELS : In Hotels Company focuses on mass consumption. The main business is of Tea
bags.
There is no other part where you find footfall of the consumer & you don’t find the product of
Lipton.
This is price comparison chart between the Lipton, Nescafe & Georgia. In the price of tea bag all
are approximately equal. Cost of coffee premix of nestle is slightly more than Lipton & Georgia.
Hot lemon tea is only available from Lipton & Georgia.
58
PRICE COMPARATIVE CHART
A - Cost per cup of tea with tea bag
B – Per cup cost of coffee premix
C – Per cup cost of cardamom tea
D – Per cup cost of soup
E – Per cup cost of hot lemon tea
After the survey of 200 companies in gurgaon I have found that nestle is the market leader in
vending machine with more than 30percent of market share .Lipton is in the second position , & rest
of market shared by CCD Georgia ,Tata etc.
1) Number of companies visited = 300 Average per day = 6
59
Area wise distribution is as follows:
2) Presence of different players in tea and coffee vending business in the companies visited:
3) Market share of Lipton, i.e., share of Lipton among total number of machines installed, against its competitors in the companies visited:
60
There is cut-throat competition am of among the leading players in the packaged tea market and
HUL is the market leader with a share of around 30 per cent, followed by Nestle at 20 per cent.
But in out-of-home business of hot beverages, HUL and Nestle have got into this segment in a big
way. They jostle for space with players such as Tata Tea and Tata Coffee, the Coffee Day group,
which has two brands including Coffee Day Takeaway and Coffee Day Bean to Cup, Sterling
InfoTech group’s Fresh & Honest (promoted by NRI businessman C Sivasankaran, who also
controls the coffee retail chain Barista), Coca-Cola’s Georgia Tea and Coffee and Fountain
Consumer Appliances.
Accordingly, Nescafe leads in the market as shown by the collected data and, hence, becomes the
strongest competitor for Lipton.
According to a survey conducted by AC Neilson (released on March 04, 2006), Nescafe continues to
be more popular among instant coffee drinkers. The Rs 511 crores coffee market consists of instant
and roasted and ground coffee. Nescafe enjoys the larger share of the Rs 361-crore instant coffee
market. Although, their all-India retail numbers that have just come in suggest that Bru has
established market leadership with 44% branded coffee drinkers preferring it.
4) Frequency of consumption of tea and coffee in the companies visited:
61
So, a large percentage of employees have tea or coffee at least twice a day. It was also found that
consumption of tea during a day accounts for nearly 65% and the remaining 35% is for coffee.
5) Following are the reasons for which the corporate houses prefer vending machines to manual
methods of preparing tea and coffee:
Provides options for wide variety of products
Time saving
Less cost associated
Diet, low sugar, without sugar options available for concerned groups
Options for hot and cold drinks
Keeps record of number of cups dispensed allowing the organization to maintain budget
6) An activity that is closely tied to sales is distribution. You have a factory and you have your
customers in different locations, which different purchasing patterns and demands. What is the best
way to take your product to the customers so that it remains profitable for the firm too? That is a
question answered by distribution. In FMCG, generally we deal in indirect selling, i.e., we sell to
someone who then sells it to someone else.
There are various reasons for which the company operates this chain through distributor sales
management which can be summarized as follows:
62
The distributors' ability to offer a more complete package of services is not only an
inventory support, but also an administrative, technical and logistic support. This
ability, together with the quick delivery of components to the myriad of customers that
manufacturers cannot afford to support, makes distribution a marketing channel of primary
consideration.
Distributors provide an increased market share for the manufacturers bringing your
message to a larger customer base.
There can be some business that is too small for you to handle, or too much trouble because
of its location. A distributor network will take this burden and change it into on opportunity.
Because the distributor is service oriented, he makes it a point to work with business
regardless of size or scope.
Distributors provide flexibility that manufacturers do not, such as delivery reschedules and
small quantity requirements
7) Opportunities explored for installation of vending machines of Lever:
These 20 companies are the prospective accounts and in the remaining ones, either the employees
are satisfied with the current status of machines or meeting could not be confirmed with the
concerned persons in HR or administration department.
63
8) Among the 300 corporate offices, Lipton vending machines were installed at 27 accounts. Here,
50 people were asked about their level of satisfaction with Hindustan Unilever Ltd on the basis of
following criteria:
a) Taste
b) Level of sweetness
c) Service Quality
d) Price
64
This shows that the consumers are more or less satisfied with Hindustan Unilever Ltd in terms of
taste and level of sweetness where dairy whitener with options like normal sugar, without sugar and
diet are offered.
But this market is very price sensitive, so, requires good negotiation expertise when competitors are
present with almost the same product portfolio. This is the reason of lesser satisfaction level as far as
prices are concerned.
In terms of service quality also level of satisfaction is low. So, there has to be an enhanced co-
ordination in the distributor sales channel.
9) Financial Aspects:
Deal is confirmed and negotiation ends at the point where both the parties are assured of their
benefits. HUL tries to ensure a return of at least 12% on consumerables to its distributors. So, I tried
to analyze the account in the following 2 ways:
a)Monthly billing of tea and coffee in the company:
Let billing = Rs 15000
12% of Rs 15000 = Rs 1800
Here, distributor is in benefit even if he does not charge monthly maintenance charges.
65
Now, the customer doesn’t enter into deal unless he is made acquainted with the benefit available to
him.
Let us consider a firm ‘A’ having 60 employees and consumption is 120 cups per day (say, 60
cups of tea and coffee each).
TEA: 60 * 3 = Rs 180
COFFEE: 60 * 5 = Rs 300
Total = Rs 480
For 1 month = Rs 480 * 25 = 12000
[Add: salary of spot boy = Rs 1000
Add: breakage = Rs 100]
Total = Rs 13100
[Here, each cup of tea and coffee is assumed to be of Rs 3 and Rs 5 respectively]
Now, with Lipton vending machine this cost will minimized as follows:
TEA = Rs 2.10+ 0.50 = 2.60 * 60 = Rs 156
COFFEE = Rs 2.06 + 0.50 =2.56 * 60 = Rs 153.6
Total for 1 month = Rs 309.6 * 25 = Rs 7740
Add: Rent = Rs 700
Total = Rs 8440
Benefit of customer = 13100– 8440 = Rs 4660
66
SWOT ANALYSIS
STRENGTHS
Strong and well differentiated brands with leading share positions.
High quality and safe products, endorsed by the Hindustan Unilever Limited Seal of Guarantee
at affordable prices.
Strong R&D capability well linked with business ensuring better controls on the quality and
consistency of product.
Integrated and efficient supply chain and well spread manufacturing units.
Distribution structure with wide reach, high quality coverage and ability to leverage scale.
Ongoing Product innovation and renovation, to convert consumer insights
High quality manpower resources.
Attractive design and distinctive features of the machine.
Far better preventive and break down maintenance.
The distributors are required to undergo quality checks to maintain standards.
Aggressive sales team and capable and committed manpower resources.
Good market response in Delhi and Noida
Tie up with other leading chains –DMRC, PVR, Airtel, HCL Technology, Reliance Energy,
Ansal Plaza to name a few.
Environment friendly cups.
Excellent range of tea and coffee premixes providing flexibility of sweetness and diet option for
concerned people.
67
WEAKNESSES
Limited success in changing consumption habits of people.
Complex supply chain configuration, unwieldy number of SKU's with dispersed
manufacturing locations.
Price positioning in some categories allows for low price competition.
Stock-out in case of much advertised flavors acts as a barrier in the retail channels.
Much higher machine prices with lesser flexibility vis-à-vis competition which leads to
higher rentals/EMIs.
Low viability of revenue sharing model especially during off-season.
.Absence of ginger flavor in the premix range of tea and this is the most preferred flavor in
northern India especially during winters
Vending machine having customization like token system are highly priced making it
unviable for many corporate clients in a need to record/control consumption.
After sales service not up to the “Expected Standards”.
Hot beverages are less preferred during summers.
OPPORTUNITIES
Brand growth through increased consumption depth and frequency of usage
Market growth through increased penetration in the unventured industrial areas like
Patparganj etc.
Upgrading consumers through innovation to new levels of quality and performance.
Growing consumption in Out of Home categories and high potential market.
68
Changing lifestyles.
Development of alternate channels such as catering, STD/PCOs, cyber café, pump, etc.
Involving DSAs and courier companies for lead generation on commission basis as have
access to administration department of the corporate houses.
Leveraging technology to develop more products that provide Nutrition, Health and
Wellness.
To increase acceptance of instant Tea/Coffee amongst masses by sampling promotion etc.,
who still seem to be averse to it, keeping in mind the unpredictable preference in taste
especially because of the loose control of the same in the competitor’s machines.
Introduction of a consumer finance scheme by a third party e.g. GE country finance can
widen the machine placement base without utilizing distributors capital.
Hosting the Commonwealth Games in 2010 will influence the development of the retail
infrastructure creating opportunities for vending operators to fill the gap in the market.
THREATS
Low priced competition now present in all categories.
Spurious/counterfeit products.
Seasonality.
Substitutability.
Heavy competition with new entrants offering me-too products or with very little variation
with all kinds of attractive offers for getting edge in market.
69
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.com
www.answers.com
www.indiainfoline.com
www.naukrihub.com
www.wikipedia.com
www.businessworldindia.com
www.financialexpress.com
www.indiacoffee.org
COMPANY MAGZINE (HAMARA)
70