Prachi Final Project

A PROJECT REPORT ON MARKETING STRATEGY AT HINDUSTAN UNILEVER PVT LTD.

(Submitted in partial fulfillment for the completion of the degree of B.com(Hons.)) Under Guidance of:

Submitted by:

Mr. Ashish Sharma

Prachi Verma

Faculty Member, FASC

Enrol. No.:080176

FACULTY OF ARTS, SCIENCE & COMMERCE Mody Institute Of Technology & Science Lakshmangarh (Rajasthan) 2010-11

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PREFACE

Hindustan Unilever Limited (formerly Hindustan Lever Limited) is India’s largest Fast Moving Consumer Goods company with a sales turnover of more than Rs.10,000 crores. At least one of its products reaches two thirds of Indian households. It has 35 brands and employs more than 15,000 people. Its promoter company Unilever, a fortune 500 multinational, holds 51.42% equity. Unilever has presence in more than 100 countries worldwide in FMCG sector. Hindustan Unilever Limited (HUL), a subsidiary of Unilever, is a fast moving consumer goods (FMCG) company based in India. The company focuses on efficient delivery to consumers with an improved supply chain, brand building initiatives and innovation, which has helped the company to sustain its leadership position in the overall FMCG category in India. This project is a sincere effort to look for the market potential in FMCG industry. A descriptive research procedure had been applied to come to the conclusions of the project. A detailed questionnaire had been prepared and the responses of the concerned people had been collected for the analysis.

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ACKNOWLEDGEMENT

“Words express everything Mouth Co-ordinates, When it comes to gratitude, Heart comes to play.”

There is always a sense of gratitude which one expresses to other people for their helpful and needy service they render during phases of life. I too would like to do the same as I really wish to express my gratitude to those who have been helpful to me in getting this project completed.I am very thankful and express my gratitude to MR. ASHISH SHARMA (faculty member , fasc )I am also indebted to all the faculty members of Mody Institute of Technology and Science for providing consistent encouragement and congenial atmosphere to complete the project.I am extremely thankful to god who is the ultimate guide providing me with valuable insist, courage and determination at every doorstep, if I don’t mention here that love, affection & co-operation which I received from my family members and friends and collegues. They too helped me a lot in completing this report.

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TABLE OF CONTENTS

S.NO.

PARTICULARS

PAGE NO.

Preface Acknowledgement 1.

Chapter-1

Introduction

6-14

2.

Chapter-2

Marketing Strategy

16-19

3.

Chapter-3

Marketing Strategy at Hindustan Unilever Limited 21-25

4.

Chapter-4

Research Methodology

27-29

5.

Chapter-5

Findings and Analysis

31-37

6.

Chapter-6

Limitations of the study

39

7.

Chapter-7

Conclusion

41

8.

Chapter-8

Recommendations

43

References Annexure

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CHAPTER – I INTRODUCTION

5

INTRODUCTION The Hindustan Unilever Ltd’s(HUL) Inc has taken the opportunity to offer us a broader view of FMCG category. The Hindustan Unilever Ltd (HLL) is India’s no.1 FMCG is able to share with their market insights based upon unparalleled breath of consumer goods experience. Hindustan Unilever Ltd (HUL) has grown from strength to strength with new technologies being introduced to make the HLL consumer goods business, one of the most efficient in the world. The company’s history dates back to 1931 when 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 Hindustan Lever Limited in November 1956. Effective July 19, 2007 the company has changed the name to Hindustan Unilever Limited. Hindustan Unilever Limited (HUL), a subsidiary of Unilever, is a fast moving consumer goods (FMCG) company based in India. The company focuses on efficient delivery to consumers with an improved supply chain, brand building initiatives and innovation, which has helped the company to sustain its leadership position in the overall FMCG category in India. Hindustan Unilever is Unilever's main operating business in India. It is the country's biggest consumer goods company, and far and away the leading advertiser. HUL inhabits virtually every sector of the consumer goods market, including several not occupied by Unilever in other markets such as preserves and bakery products, and is also one of the country’s top five exporters. In addition to FMCG products it is the country's biggest exporter of tea. It is generally acknowledged to be one of India's best-run businesses, although performance slowed dramatically between 2000 and 2004, prior to restructuring. Unilever, which sells soap to more than 500 million Indians, may see global revenue growth slow in 2010 as Procter & Gamble Co. and ITC Ltd. step up marketing in Asia's third-biggest economy. 6

The world's second-largest consumer products maker has relied on accelerating shipments of Surf Excel detergent in India to make up for sluggish sales in Europe.Now Cincinnati- based Procter & Gamble is stocking Indian stores with Olay skin- care products after nearly halving the local prices of Ariel and Tide detergents in 2004. Asia and Africa, which make up about a third of Unilever's worldwide sales, will see their share of the company's growth fall to 2 percent in 2010 from 3.3 percent in 2007, according to Brussels- based brokerage Petercam SA. Revenue from the two continents rose 11.4 percent in the first nine months of last year, helping offset 1.9 percent growth in Europe and 4.2 percent in North and South America. Unilever's overall sales growth will slow to 4.9 percent in 2010 from an estimated 5.3 percent in 2007, according to the median of five analysts in a Bloomberg survey.

1.1 HISTORY OF HINDUSTAN UNILEVER LTD It was in the summer of 1888 that Unilever of England firstmarketed Sunlight soap in India. This was followed by brands like Pears and Vim. Vanaspati was launched in 1918 and Dalda 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. 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. Two 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. 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. In a historic step, HUL picked up 74 per cent of the equity of Modern Foods from the Indian government.

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In 2002, HUL acquired the government s remaining stake in Modern Foods. FMCG major Hindustan Unilever Limited (HUL), formerly known as Hindustan Lever Limited, employs 36,000 people, including over 1,350 managers. It is one of the earliest MNCs to have entered India

1.2 COMPANY PROFILE

The mission that inspires HUL's 36,000 employees, including over 1,350 managers, is to "add vitality to life." HUL meets everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. It is a mission HUL shares with its parent company, Unilever, which holds 51.55% of the equity. The rest of the shareholding is distributed among 380,000 individual shareholders and financial institutions. HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, KnorrAnnapurna, Kwality Wall's – are household names across the country and span many categories - soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary products. They are manufactured in close to 80 factories. The operations involve over 2,000 suppliers and associates. HUL's distribution network, comprising about 7,000 redistribution stockists, directly covers the entire urban population, and about 250 million rural consumers. HUL has traditionally been a company, which incorporates latest technology in all its operations. HUL is also running a rural health programme – Lifebuoy Swasthya Chetana. The programme endeavtheirs to induce adoption of hygienic practices among rural Indians and aims to bring down the incidence of diarrhoea. It has already touched 70 million people in approximately 15000 villages of 8 states. The vision is to make a billion Indians feel safe and secure. If Hindustan Lever straddles the Indian corporate world, it is because of being single-minded in identifying itself with Indian aspirations and needs in every walk of life.

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1.3 MISSION Hindustan Unilever Limited mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life.

1.4 VISION Their vision is to continue to be an environmentally responsible organisation making continuous improvements in the management of the environmental impact of their operations. HUL will achieve this through an Integrated Environment Management approach, which focuses on People, Technology and Facilities, supported by Management Commitment as the prime driver.

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1.5 PRODUCT PROFILE

DETERGENT PRODUCTS

FOOD PRODUCTS

HEALTH CARE PRODUCT 10

BATHING PRODUCTS

COLOR COSMETICS PRODUCTS

HAIR CARE PRODUCTS

11

SKIN CARE PRODUCTS

DENTAL CARE PRODUCTS

12

DEODRANTS PRODUCTS

1.7 SWOT ANALYSIS a) Strengths 1. Strong and well differentiated brands with leading share positions 2. Distinctly placed products providing reach to every segment of society. 3. Consumer understanding and systems for building consumer insight 4. Integrated supply chain and well spread manufacturing units 5. Distribution structure with wide reach, high quality coverage – The launch of project “Shakti” has helped HUL to create brand awareness and extensive reach in rural India. 6. Access to Unilever global technology, capability and sharing of best practices from other Unilever companies. 7. Well placed to take advantage of growth in rural India and lower strata of the society through “Shakti”. 8. It could look at introducing products from its parent company like margarine in order to cater to changing consumer tastes and opportunities in food sector. 9. It can be a leader in exports by positioning itself as a sourcing hub for Unilever companies in various countries. b) Weaknesses 1. Price positioning in some categories allows for low price competition like Amul captured Kwality’s market. 2. Limited success in changing eating habits of people. 3. Competitors focusing on a particular product and eating up HUL’s share, like Nirma 13

focusing on soaps and detergents. c) Opportunities 1. Growing consumer base due to increasing income levels and new consumers from lower strata of the society 2. Untapped market in branded Ayurvedic medicines and other such consumer products. 3. Opportunity in Food sector: changing consumer tastes

4. Expansion of horizons towards more and more countries d) Threats 1. Unfavourable raw material prices due to inflation, reducing profitability. 2. Heavy onslaught of competition in the core categories from emerging players like ITC will result in higher advertising expenditure 3. Spurious/counterfeit products in rural areas and small towns. 4. Reduction in real income of consumers due to high inflation.

1.8 COMPETITORS Competition

HUL Dabur India Godrej Consumer Colgate Marico Emami Godrej Ind P and G Gillette India Jyothy Labs

Last Price

Market Cap.

Sales

Net Profit

Total Assets

299.15 104.25 401.45 850.55 131.75 490.75 228.85 2,178.90 1,862.10 284.45

(Rs. cr.) 65,284.10 18,147.05 12,990.53 11,566.87 8,090.38 7,425.62 7,268.85 7,072.87 6,067.69 2,293.58

Turnover 17,725.33 2,874.60 1,267.88 1,770.82 2,030.85 1,006.86 880.97 904.46 852.48 579.87

2,202.03 433.15 248.12 290.22 235.02 165.40 19.33 179.76 137.10 80.05

2,583.52 855.45 839.87 330.70 948.58 874.02 1,570.31 534.65 490.89 399.10

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CHAPTER-2 MARKETING STRATEGY

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2.1 Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered around the key concept that customer satisfaction is the main goal. Marketing strategy is a method of focusing an organization's energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements; identifies the firm's marketing goals, and explains how they will be achieved, ideally within a stated timeframe. Marketing strategy determines the choice of target market segments, positioning, marketing mix, and allocation of resources.

2.2 Types of strategies Marketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some generic strategies. A brief description of the most common categorizing schemes is presented below: a) Strategies based on market dominance - In this scheme, firms are classified based

on their market share or dominance of an industry. Typically there are four types of market dominance strategies: b) Leader c) Challenger d) Follower e) Nicher

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f) Porter generic strategies - strategy on the dimensions of strategic scope and strategic

strength. Strategic scope refers to the market penetration while strategic strength refers to the firm’s sustainable competitive advantage

g) Market segmentation (narrow) h) Innovation strategies - This deals with the firm's rate of the new product development

and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types: i) Pioneers j) Close followers k) Late followers l) Growth strategies - In this scheme we ask the question, “How should the firm grow?”. There are a number of different ways of answering that question, but the most common gives four answers: m) Horizontal integration n) Vertical integration o) Diversification

2.3 Tactics and actions A marketing strategy can serve as the foundation of a marketing plan. A marketing plan contains a set of specific actions required to successfully implement a marketing strategy. For example: "Use a low cost product to attract consumers. Once our organization, via our low cost product, has established a relationship with consumers, our organization will sell additional, higher-margin products and services that enhance the consumer's interaction with the low-cost product or service." A strategy consists of a well thought out series of tactics to make a marketing plan more effective. Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives. Plans and objectives are 17

generally tested for measurable results.A marketing strategy often integrates an organization's marketing goals, policies, and action sequences (tactics) into a cohesive whole. Similarly, the various strands of the strategy , which might include advertising, channel marketing, internet marketing, promotion and public relations can be orchestrated. Many companies cascade a strategy throughout an organization, by creating strategy tactics that then become strategy goals for the next level or group. Each one group is expected to take that strategy goal and develop a set of tactics to achieve that goal. This is why it is important to make each strategy goal measurable.Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned.

2.4 Strategic Models Marketing participants often employ strategic models and tools to analyze marketing decisions. When beginning a strategic analysis, the 3Cs can be employed to get a broad understanding of the strategic environment. An Ansoff Matrix is also often used to convey an organization's strategic positioning of their marketing mix. The 4Ps can then be utilized to form a marketing plan to pursue a defined strategy. There are many companies especially those in the Consumer Package Goods (CPG) market that adopt the theory of running their business centered around Consumer, Shopper & Retailer needs. Their Marketing departments spend quality time looking for "Growth Opportunities" in their categories by identifying relevant insights (both mindsets and behaviors) on their target Consumers, Shoppers and retail partners. These Growth Opportunities emerge from changes in market trends, segment dynamics changing and also internal brand or operational business challenges.The Marketing team can then prioritize these Growth Opportunities and begin to develop strategies to exploit the opportunities that could include new or adapted products, services as well as changes to the 7Ps.

2.5 Real-life marketing Real-life marketing primarily revolves around the application of a great deal of commonsense; dealing with a limited number of factors, in an environment of imperfect information 18

and limited resources complicated by uncertainty and tight timescales. Use of classical marketing techniques, in these circumstances, is inevitably partial and uneven. Thus, for example, many new products will emerge from irrational processes and the rational development process may be used (if at all) to screen out the worst non-runners. The design of the advertising, and the packaging, will be the output of the creative minds employed; which management will then screen, often by 'gut-reaction', to ensure that it is reasonable. For most of their time, marketing managers use intuition and experience to analyze and handle the complex, and unique, situations being faced; without easy reference to theory. This will often be 'flying by the seat of the pants', or 'gut-reaction'; where the overall strategy, coupled with the knowledge of the customer which has been absorbed almost by a process of osmosis, will determine the quality of the marketing employed. This, almost instinctive management, is what is sometimes called 'coarse marketing'; to distinguish it from the refined, aesthetically pleasing, form favored by the theorists.

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CHAPTER – 3 MARKETING STRATEGIES AT HUL

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3.1 HIGHER MARKETING SPENDS AND LARGE RETAIL POSE TOUGH CHALLENGES FOR HUL THE CHALLENGES HIGHER SPENDS: Once a huge source of competitive advantage, higher marketing spends are justenough to maintain status quo in the current environment. Though HUL has hiked its advertising-to-sales ratio in the past three quarters, it is at a time when the number of brands advertising on television has gone up by 82 per cent in the past decade. Explains why HUL tried advertising innovations with advertising roadblocks (only HUL brands advertising on a given channel on a particular day) or having five personal care brands starring in a single advert.

STRONGHOLDS AND WEAK POINTS SKIN CARE: Once upon a time, with Vaseline, Ponds and Lakme in skin care, HUL was the fairest of them all. Now with other global heavyweights climbing on board, times are a changing. L'Oreal is now the second largest advertiser in the category —14 per cent of television ad volumes, says advertising monitor ADEX. P&G with Olay, and J&J with Neutrogena are also big global brands with equally big India ambitions. DISTRIBUTION: HUL is still the lord of distribution in India. But rivals seem to be finally getting their act together. For instance, P&G has beefed up its distribution muscle, which could be why HUL declared war on P&G in the detergents category. MODERN TRADE: Organised retail could be the great leveller. Less than 5 per cent of Indian consumers might be going to large outlets for buying FMCG, but this trend is unlikely to remain that way. Hyderabad already has more than 40 per cent of its population shopping 21

at large formats. With an eye on P&G's expertise in handling large format operations globally, HUL sent its bright stars to Wal-Mart for training in managing modern trade. ORAL HYGIENE: This segment is likely to see a lot of action with P&G watching it closely (remember, Crest is not yet in India). Indian brands such as Dabur and Vicco are also boosting action. Vicco is the largest advertiser in print — 40 per cent of volumes compared to 8 per cent of HUL in the first half of 2009. The surprise packet in oral hygiene are the international confectionery giants, Wrigley and Perfetti, who are aggressively pushing their gum brands as oral care, even through dentists. So, 'white' and watch this space. TEA: HUL, which lorded over the tea segment with two brands Brooke Bond and Taj Mahal, has been effectively challenged by Tata Tea — both in distribution in large consumption states such as UP, and smart communication such as the Jaago Re campaign. R. Sridhar, chief financial officer of HUL. "We are holding share in soaps for the past eight months. In fact, we inched up a little in the fourth quarter of 2009." The latest industry reports suggest detergent market volumes are moving back up, by a percentage point for both soaps and detergents. In Q3 FY10, losses in market share have stopped. Second, there was the commodity price inflation of 2008. In response, HUL raised prices relatively steeply on soaps and detergents. Inflation-conscious consumers turned to cheaper products from Godrej Consumer Products,Wipro and other players whose price hikes were much smaller. Sure enough, commodity prices softened again. "But HUL was unable to drop its prices immediately, as it had contracted a large Compiled by Prasad Sangameshwaran part of its raw material for 5-6 months," says Arnab Mitra, FMCG analyst with Indialnfoline, a securities broking firm in Mumbai. "This was also the time when close to 600 new local brands entered the detergent segment, lured by high product prices and soft raw material costs," says Gopal VTttal, executive director of home and personal care products at HUL. Vittal says getting price reductions into consumer hands was much slower for all organised players, given the inventories in the trade pipeline, and compounded by India's large, fragmented retail. So, the bulk of the share erosion that all organised players saw went to new local players. Third, analysts say HUL ignored its strong local soap and detergent brands (Rexona, Liriland Hamam, for example). It lost market share to self-help groups targeting rural markets who made and sold much cheaper brands such as Akhruti and 22

Winner Turbo. But Paranjpe has another view. "These small local detergent businesses are unsustainable," he says. HUL's local brands contribute about 30 per cent to soap revenues, and in the 15 months from December 2007 to March 2009, HUL lost nearly 6 per cent of market share. Lower brand investments may have cost HUL 3.5 per cent of lost market share.

3.2 HUL’S NEW GROWTH STRATEGY After having fought a bitter price battle for market share with its rivals, Hindustan Unilever Ltd (HUL), Indian subsidiary of the Anglo- Dutch consumer goods company Unilever Plc, is now working on a new growth strategy for its laundry business. “Price cut or hike is not a long-term growth strategy. Pricing, in fact, is now passe,” insists Sudhanshu Vats, category head, home care. Our strategy for growth, now is focused on product innovation, new consumer and retail trends and aggressive marketing and promotions,” he said. This comes even as Unilever is scouting for a potential buyer for its laundry business in the US. HUL says it is quite upbeat about the segment and says the laundry segment is one of its “key growth areas.” “We have done key innovations across the product portfolio and it is working for us,” says Vats. “We successfully migrated from Rin Supreme to Surf Excel and Wheel Smart Srimati—which was rolled out in 2006—is also on the right track.” HUL’s market share in the laundry segment grew to around 37.8% in the quarter ended June from 35.5% in the same period last year, according the market research firm ACNielsen. However, this time, the increase was not at the expense of price war with its multinational rival Procter & Gamble Co. P&G also gained 0.5 percentage points, up to a 7.6% share. Nirma Ltd, the Ahmedabad- based manufacturer, however, saw its market share dip by 1.7% percentage points to 13.5%. Wheel, a value brand that, according to Vats contributes around 50% of HUL’s laundry segment revenues, increased its market share by 2 percentage points in the same period, with a total share of about 18%. According to ACNielsen, the laundry industry in India was worth Rs7,908 crore in 2006 and rose 8.4% over 2005. HUL doesn’t report its laundry revenues separately but puts them under the soaps and detergent category. In 2006, HUL’s soaps and detergents segment contributed around Rs5,596 crore to the company’s total sales of Rs12,103 crore. “Laundry has been an attractive segment in the past and is likely to keep growing in the near future. The recent price war between companies led to 23

erosion in their profitability but now,the industry is stabilizing,” says Unmesh Sharma, an analyst at Macquarie Securities here. According to Vats, the laundry business is witnessing a surge in demand from cities and HUL is focusing on Tier I and II cities to tap that demand.

3.3HINDUSTAN UNILEVER’S MARKET SEGMENTATION Market place for any product is comprised of many different segments of consumers, each with different needs and wants. Markets segmentation can be defined in a number of ways such as: Demographic variables (e.g. Consumers are groups, gender, material states income etc…) The lifestyle of consumers (i.e. their interests and activities) the benefits which consumers look for in a product or on the occasions when the product might be consumed. Hindustan Unilever(Ltd) takes into account all these factors when producing a range of products. It targets different segments within the market.

3.5 FUTURE COMPETITIVE STRATEGY 2010 Expectations P&G, the world's largest consumer-goods maker, will continue to gain share in the next five years in India, according to Ali Dibadj, an analyst at Sanford C. Bernstein in New York, who rates the stock ``outperform.'' Hindustan Unilever Ltd., 52 percent owned by the Londonand Rotterdam-based parent, lost ground in shampoo, soap, toothpaste and tea in the quarter ended Sept. 30, compared with the year earlier, according to the company. Its share of the shampoo market declined by more than a percentage point to 47.7 percent, the company said.

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ITC, the largest Indian cigarette maker and partly owned by British American Tobacco Plc, is also making inroads. It started selling more brands including Fiama Di Wills shampoo and Superia soap last year as the government raised tobacco taxes.

\ `Profitable' Cigarettes The tobacco maker ``has a very profitable cigarettes business which will help it to invest and expand its personal- care portfolio,'' said Anand Shah, an analyst at Angel Broking in Mumbai, who has a ``neutral'' rating on the stock. ``It has the ability to take losses in this segment as long as it grows its sales. This strategy will still satisfy investors.'' Rising prices of raw materials have made it more difficult for consumer-goods makers to pass on higher costs. The price of palm oil, used to make soaps and foods, has surged 70 percent in the past year. ``Given the competition, profitability will continue to be under pressure,'' said Macquarie Securities Ltd. analyst Unmesh Sharma, who has an ``underperform'' rating on Hindustan Unilever. He expects the stock to drop to 180 rupees ($4.57) in the next year from 190.9 rupees. The company has a market value of about $11.8 billion.

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CHAPTER – 4 RESEARCH AND METHODOLOGY

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RESEARCH METHODOLOGY The section includes the overall research design, the sampling procedure, the data collection method, the field method, and analysis and procedure. The section of a research proposal in which the methods to be used are described. The research design, the population to be studied, and the research instruments, or tools, to be used are discussed in the methodology.

4.1 OBJECTIVE OF THE STUDY a) The main objective of this project is to find , what are the steps Hindustan Unilever Ltd. is adapting to be market leader and to differentiate itself from its competitors. b) Most of the products of HUL come in the category of convenience products. They are frequently used and bought by the customers. There are large no. of players in the market who are supplying similar products. c) The basic objective of this project is as mentioned above is to find ways so that HUL remains market leader by considering all the needs and wants and by fulfilling their demands.

4.2 RESEARCH DESIGN The strategic plan for a research project or research programme, setting out the broad outline and key features of the work to be undertaken, including the methods of data collection and analysis to be employed, and showing how the research strategy addresses the specific aims and objectives of the study, and whether the research issues are theoretical …

Types of research design are as follows: 27

Descriptive

Describe phenomena as they exist. Descriptive studies generally take raw data and summarize it in a useable form. Can also be qualitative in nature if the sample size is small and data are collected from questionnaires, interviews or observations.

Experimental

The art of planning and implementing an experiment in which the research has control over some of the conditions where the study takes place and control over some aspects of the independent variable(s) (presumed cause or variable used to predict another variable)

Quasi-experimental A form of experimental research. One in which the researcher cannot control at least one of the three elements of an experimental design: Environment Intervention (program or practice) Assignment to experimental and control groups Qualitative Research Designs Historical

Collection and evaluation of data related to past events that are used to describe causes, effects and trends that may explain present or future events. Data are often archival. Data includes interviews.

Ethnographic

The collection of extensive narrative data over an extended period of time in natural settings to gain insights about other types of research. Data are collected through observations at particular points of time over a sustained period. Data include observations, records and interpretations of what is seen.

Case Studies

An in-depth study of an individual group, institution, organization or program. Data include interviews, field notes of observations, archival data and biographical data. 28

For this research project DESCRIPTIVE method is being used.

4.3 DATA COLLECTION METHOD The data collect for the research can be classified as primary data and secondary data. Primary data is by visiting existing customer and expected customer of Hindustan Unilever Limited and making them fill up the questionnaire. Secondary data is from internet, books, magazine etc. For this project report both the sources of Data Collection are taken into consideration.

4.4 RESEARCH INSTRUMENT The testing device for measuring a given phenomenon, such as a paper and pencil test, a questionnaire, an interview, a research tool, or a set of guidelines for observation. A structured questionnaire is one which is used in large surveys where specific answers are anticipated. They include the use of multiple choice and scale questions. The instrument used for data collection is structured questionnaire. Question is open and close ended depending upon the information that needed to be elicited.

4.5 SAMPLING PLAN 1. SAMPLE UNIT- employees and local people. 2. SAMPLE SIZE- 100 3. SAMPLING AREA- MUMBAI 4. SAMPLING DURATION-6 days (17th June 2010 to 23th June 2010)

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CHAPTER-5 FINDINGS AND ANALYSIS

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ANALYSIS Q1. How many members are there in your family?

Members

Numbers

2-5

56

5-10

34

60 50 40 02-May

30

05-Oct

20 10 0

Numbers

Interpretation 56 % of sample having two to three members in family and 34% of sample consist 5-10 members.

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Q2. Have you ever heard of HUL (Hindustan Unilever Limited )? Yes or no

Number

Yes

65

No

35

70 60 50 40

Yes No

30 20 10 0

Number

Interpretation 65% of respondants says yes and 35 % of respondants say no.

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Source of

Number

advertisement Newspaper

24

Magazines

16

Television

30

Others

30

Q.3 From where you have heard of HUL ?

30 25 20

Newspaper Magazines Television Others

15 10 5 0

Number

Interpretation 24% of respondents came to know about HUL from newspaper, 16% from magazines, 30% from television and 30% from other sources.

Q4. Are you using any HUL product?

33

Yes or no

Number

Yes

55

No

45

60 50 40 Ye s

30

No 20 10 0

Number

Interpretation 55% of respondents says yes and 45 % of respondents says no.

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Q5. If Yes, then are you satisfied?

Yes or no

Number

Yes

51

No

49

51 50.5 50 Yes

49.5

No

49 48.5 48 Number

35

Interpretation 51% of respondents are satisfied and 49 % are not.

Age group

Number

10-20

29

21-30

20

31-40

21

41-50

15

50+

15

Q.6 You belong to which age group?

30 25 Oct-20

20

21-30

15

31-40

10

41-50 50+

5 0

Number

Interpretation 29 % of respondents belongs to age group 10-20 and 21 % of respondents belongs to age group 21-30 and 15 % of respondents belongs to age group of 31-40.

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Q.7 Which of the following company’s PRODUCT are you using?

Company

Number

HUL

23

Dabur india

27

Marico

16

P&G

11

Colgate

23

30 25 HUL Dabur india Marico P&G Colgate

20 15 10 5 0

Number

Interpretation 23% of respondents use HUL products, 27% uses Dabur India, 16% uses Marico, 11% uses P & G and 23% uses Colgate product.

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CHAPTER – 6 LIMITATION OF THE STUDY

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LIMITATIONS Everything in this world has its own advantages and disadvantages which shows ‘nothing is perfect’. Following are the problems faced but it’s a part of game: 1. TIME CONSUMING: It is very much obvious that it is a time consuming process. So

much time has been spent for this purpose. 2. LOW PARTICIPATION: Obviously many respondents have not participated in this and

have also created some problems which simply shows that they were not interested. 3. BIASNESS: Sometimes interested customers were also biased so the collected figures

involve both positive and negative figures. 4. It does not cover all the aspects of the company. 5. SUBJECTIVE: This project only tells you what it is all about.

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CHAPTER – 7 CONCLUSION

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CONCLUSION This company project has demonstrated “HINDUSTAN UNILEVER’S MARKETING STRATEGIES AND POLICIES” that has proved to be extensive through, and of great benefit to the company in furthering its competitive advantage. In this project it possible to see the success of Hindustan Unilever’s in it’s indorse its strong potential to continue to do well. 3rd consecutive year of accelerated growth in FMCG portfilio.Growth broad based and across all categories. FMCG market expected to maintain current growth levels.Successfully implement the food strategy.Build momentum to the water business.Build on competitive capabilities across the business system.Manage cost inflation effectively to improve margin throughpricing,cost saving and better mix. Strong commitment to governance and CSR.

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CHAPTER – 8 RECOMMENDATIONS

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RECOMMENDATIONS Both the companies having good market share in India and it keep on increasing. Both the co. i.e. HUL and P&G should open exclusive shop. HUL is already having exclusive shop in Mumbai called SANGAM STORE. But it is only in India so it should be increased. The employee should be given uniforms in which the name of the company should be printed, by doing this the sales people get motivated. These shops should be opened for 24 hours. They should offer 24 hours free home delivery system. The delivery vehicle should be attractive the name of the company should be printed in that so that it becomes the sources of advertisement. The companies should emphasis on its advertisement, there should be BRAND FIT in that. For example when lux launch its advertisement with sharukh khan with girls. It was heavily criticized because it was not fit with the brand. It adversely affect the opinion of the customer and it results in decrease in sales. Both companies should emphasis their business in areas. They should penetrate their business in the rural areas. 69% of the Indian population lives in rural areas. There is huge market there and very less market has been penetrated. Both these companies should concentrate on rural areas. P&G has been hardly been seen in the rural areas. So they should increase their presence. They should increase their CSR activities in northern India. At present they are currently doing their CSR in southern India. So they should increase their activities in north India also.

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REFERENCES

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BOOKS • A L Ries (1996), “Focus” Harper Collins Publishers Ltd. • David A. Aaker (1991), “Managing Brand Equity”, The Free Press. • David A. Aaker (1996) “Building Strong Brands”, The Free Press. • Philip Kotler (Eighth Edition) “Marketing Management”, Prentice Hall of India Ltd.

MAGAZINES a) Business India. b) India Today.

WEBSITES www.unilever.com www.scribd.com www.corporateinfo.com www.productanalysis.com www.slideshare.net

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ANNEXURE

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QUESTIONNAIRE

Q1. How many members are there in your family?

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

YES ______

NO ______

Q.3 From where you have heard of HUL ?

Newspaper

Magazines

Television

Others _______

Q4. Are you using any HUL product?

YES

NO

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Q5. If Yes, then are you satisfied?

YES

NO

Q.7 You belong to which age group? 10-20

□

21-30

□

31-40

□

41-50

□

50+

□

Q.8 Which of the following company’s PRODUCT are you using? HUL

□

Dabour India

□

Marico

□

P&G

□

Colgate

□

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