Surf Excel
INTRODUCTION TO THE PROJECT REPORT
Introduction to the Study Objectives of the Project Scope of the study Methodology of the study Limitations of the study
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Surf Excel
HISTORY OF DETERGENT
History of soap making Surfactants in detergents Packaging
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Surf Excel
HISTORY OF WASHING POWDER
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Surf Excel
MARKETING FUNCTIONS
Definition Meaning of marketing Importance of marketing Functions of marketing
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Surf Excel
HLL & FAMILY – IN THE EYES OF PRESS
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Surf Excel
ANNALYSIS OF SURVEY FINDINGS
SUGGESTIONS & CONCLUSION
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Surf Excel
INTRODUCTION TO PROJECT HISTORY OF DITERGENT HISTORY OF WASHING POWDER MARKETING FUNCTION HLL & FAMILY – IN THE EYES OF PRESS ANALYSIS OF SURVEY & FINDINGS SUGGESTION & CONCLUSION ANNEXUARE CONSUMER QUESTIONNAIRE
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BIBLIOGRAPHY
CHAPTER- 1 INTRODUCTION TO THE PROJECT REPORT
Marketing is a complex as well as composite process in a society by which the demand structure for economic goods and service is to estimated intelligently and also anticipated or enlarged and satisfied through conception, promotion, exchange and physical distribution to satisfy the needs, desires and wants of the consumers or the market places. A product is a main factor for every marketing program.
When
products plan or product ideas shares, the marketing programs starts and marketing programs ends when consumer needs or desires are to be satisfied. The customer is the controlling factor around which the entire marketing activities are revolving. Beginning and end of the marketing management is marketing research. Marketing research involves knowing more about the ultimate consumer and the dealer and also about the marketing mix in every market.
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As because of increase in consumers business grows larger and for the effective control of growing commerce and business management should be adequately developed and it should solve the managerial as well as marketing problem by using managerial tools and decisions based on scientific investigation and analysis of marketing problems. In olden days production was very less, at that time consumer has to reach for the products for satisfying their needs.
As because of
industrialisation today it becomes difficult for a producer to sell his product in the market. Because of increase in competition, substitutes etc., it is very difficult to find a customer for this product, it led to creation of customer’s in the market. Industrialisation put a turning point to the marketer’s process
and programs so effective marketing. Management becomes very essential for the manufacture to retain in the market.
INTRODUCTION TO THE STUDY This project report has aimed at giving detailed report of ‘Marketing analysis of Surf Excel washing powder’. From the necessary primary as well as secondary data collected within the span of time available, analysis and interpretation have made and conclusion has drawn on the subject.
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This project report gives analysis of survey findings, methodology adopted and observations made in the improvements of the product from the general point of view. Decisions regarding marketing mix namely; Product, Price, Promotion and Distribution are made on the basis of market research reports. Such reports will help to decide different prices such reports may help the marketer to adopt a particular strategy so as to get the maximum profit in the available marketing conditions.
OBJECTIVES OF THE PROJECT REPORT 1. To increasing marketing knowledge through preparing these projects report and know about marketing activities in practically. 2. To know about which factors of Surf Excel washing powder products affecting both consumers and dealers. 3. To know about present position and competition of Surf Excel washing powder in Bhadravathi market. 4. To point out the present quality, packing, advertisement and distribution system of Surf Excel washing powder products is suited in the present marketing circumstances. 5. To know about problems faced by the authorised dealers of Surf Excel washing powder in Bhadravathi City. 6. To knowing about exact market of Surf Excel washing powder product at present.
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Surf Excel
7. To know about credit facilities of manufacturer, agency, wholesalers or retailers, ultimate consumers. 8. To discover possible avenue for selling all items of Hindustan Lever Ltd., 9. To know consumer and dealer behaviour through this product. 10. To analyse the performance of Hindustan Lever Limited.
METHODOLOGY OF THE STUDY For the purpose of analysis of marketing of Surf Excel washing powder, the survey has been conducted by the collection of both primary and secondary data. 1. Source of Secondary data; a. Journals. b. News papers. c. Encyclopaedia. d. Text books. e. Company’s Website f. Company annual report.
2. Primary data have been collected through; a. Interview with dealer to know the dealers opinion about the product, a questionnaire was prepared and distributed to different dealers in different area to now the factors affecting the dealers, their opinion about quantity, price, packing, profit margin etc., Dr. Amedkar BBM College, Shimoga
Surf Excel
b. Interview with consumer to know the consumer opinion about this product, a questionnaire was prepared and distributed to different background consumers.
SCOPE OF STUDY The Scope of this project report is restricted only to the study of marketing analysis of Surf Excel washing powder. The area of study has been restricted to Bhadravathi City only. The report gives information in general. However, the survey has to be conducted on sampling basis of consumers. Consumers are to be selected on random basis for collecting information’s for the survey and it has been collected by means of primary data.
LIMITATIONS OF THE STUDY When dealers were contacted and requested for their opinion through personal interview about the ‘study, cent percent answers were not obtained, because some showed their reluctance to respond due to many different reasons. But as for as possible it has seen tried the level best to get the correct, exact and precise information towards the study.
Several information was not disclosed by the concerned authorities as they felt it was necessary to keep this confidential. Hence the details of some more critical points could not be disclosed here.
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Secondary data hardly available regarding Hindustan Lever Limited. Due to the shortage of secondary source many information were not available, although all necessary information was founded. There are many chances of consumers justifying his purchase whether it is wrong or right. This creates a bias in response.
This study has carried out under time constant. Due to this we have drawn our interfere with whatever little response we get. Thus cent percent accuracy cannot be expected by this report.
However we feel that our
conclusions are practical and realistic.
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CHAPTER- 2
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HISTORY OF DITERGENT
The origins of personal cleanliness date back to prehistoric times. Since water is essential for life, the earliest people lived near water and knew something about its cleansing properties - at least that it rinsed mud off their hands. A soap-like material found in clay cylinders during the excavation of ancient Babylon is evidence that soapmaking was known as early as 2800 B.C. Inscriptions on the cylinders say that fats were boiled with ashes, which is a method of making soap, but do not refer to the purpose of the "soap." Such materials were later used as hair styling aids. Records show that ancient Egyptians bathed regularly. The Ebers Papyrus, a medical document from about 1500 B.C., describes combining animal and vegetable oils with alkaline salts to form a soap-like material used for treating skin diseases, as well as forwashing At about the same time, Moses gave the Israelites detailed laws governing personal cleanliness. He also related cleanliness to health and religious purification. Biblical accounts suggest that the Israelites knew that mixing ashes and oil produced a kind of hairgel. The early Greeks bathed for aesthetic reasons and apparently did not use soap. Instead, they cleaned their bodies with blocks of clay, sand, pumice and ashes, then anointed themselves with oil, and scraped off the oil and dirt with a metal instrument known as a strigil. They also used oil with ashes. Clothes were washed without soap in streams. Soap got its name, according to an ancient Roman legend, from Mount Sapo, where animals were sacrificed. Rain washed a mixture of melted animal fat, or tallow, and wood ashes down into the clay soil along the Tiber River. Women found that this clay mixture made their wash cleaner with much less effort. The ancient Germans and Gauls are also credited with discovering a substance called soap, made of tallow and ashes, that they used to tint their hair red. As Roman civilization advanced, so did bathing. The first of the famous Roman baths, supplied with water from their aqueducts, was built about 312 B.C. The baths were luxurious, and bathing became very popular. By the second century A.D., the Greek physician, Galen, recommended soap for both medicinal and cleansing purposes.
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After the fall of Rome in 467 A.D. and the resulting decline in bathing habits, much of Europe felt the impact of filth upon public health. This lack of personal cleanliness and related unsanitary living conditions contributed heavily to the great plagues of the Middle Ages, and especially to the Black Death of the 14th century. It wasn't until the 17th century that cleanliness and bathing started to come back into fashion in much of Europe. Still there were areas of the medieval world where personal cleanliness remained important. Daily bathing was a common custom in Japan during the Middle Ages. And in Iceland, pools warmed with water from hot springs were popular gathering places on Saturday evenings
HISTORY OF SOAP MAKING Soapmaking was an established craft in Europe by the seventh century. Soapmaker guilds guarded their trade secrets closely. Vegetable and animal oils were used with ashes of plants, along with fragrance. Gradually more varieties of soap became available for shaving and shampooing, as well as bathing and laundering. Italy, Spain and France were early centers of soap manufacturing, due to their ready supply of raw materials such as oil from olive trees. The English began making soap during the 12th century. The soap business was so good that in 1622, King James I granted a monopoly to a soapmaker for $100,000 a year. Well into the 19th century, soap was heavily taxed as a luxury item in several countries. When the high tax was removed, soap became available to ordinary people, and cleanliness standards improved. Commercial soapmaking in the American colonies began in 1608 with the arrival of several soapmakers on the second ship from England to reach Jamestown, VA. However, for many years, soapmaking stayed essentially a household chore. Eventually, professional soapmakers began regularly collecting waste fats from households, in exchange for some soap. A major step toward large-scale commercial soapmaking occurred in 1791 when a French chemist, Nicholas Leblanc, patented a process for making soda ash, or sodium carbonate, from common salt. Soda ash is the alkali obtained from ashes that combines with fat to form soap. The Leblanc process yielded quantities of good quality, inexpensive soda ash. The science of modern soapmaking was bom some 20 years later with the discovery by Michel Eugene Chevreul, another French chemist, of the chemical nature and relationship of fats, glycerine and fatty acids. His studies established the
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Surf Excel basis for both fat and soap chemistry. Also important to the advancement of soap technology was the mid-1800s invention by the Belgian chemist, Ernest Solvay, of the ammonia process, which also used common table salt, or sodium chloride, to make soda ash. Solvay's process further reduced the cost of obtaining this alkali, and increased both the quality and quantity of the soda ash available for manufacturing soap. These scientific discoveries, together with the development of power to operate factories, made soapmaking one of America's fastest-growing industries by 1850. At the same time, its broad availability changed soap from a luxury item to an everyday necessity. With this widespread use came the development of milder soaps for bathing and soaps for use in the washing machines that were available to consumers by the turn of the century.
HISTORY OF DETERGENT MAKING The chemistry of soap manufacturing stayed essentially the same until 1916, when the first synthetic detergent was developed in Germany in response to a World War I-related shortage of fats for making soap. Known today simply as detergents, synthetic detergents are non-soap washing and cleaning products that are "synthesised" or put together chemically from a variety of raw materials. The discovery of detergents was also driven by the need for a cleaning agent that, unlike soap, would not combine with the mineral salts in water to form an insoluble substance known as soap curd. Household detergent production in the United States began in the early 1930s, but did not really take off until after World War II. The war-time interruption of fat and oil supplies as well as the military's need for a cleaning agent that would work in mineral-rich sea water and in cold water had further stimulated research on detergents. The first detergents were used chiefly for hand dishwashing and fine fabric laundering. The breakthrough in the development of detergents for all-purpose laundry uses came in 1946, when the first "built" detergent (containing a surfactant/builder combination) was introduced in the U.S. The surfactant is a detergent product's basic cleaning ingredient, while the builder helps the surfactant to work more efficiently. Phosphate compounds used as builders in these detergents vastly improved performance, making them suitable for cleaning heavily soiled laundry. By 1953, sales of detergents in this country had surpassed those of soap. Now detergents have all but replaced soap-based products for laundering, dishwashing and household cleaning. Detergents (alone or in combination with soap) are also found in many of the bars and liquids used for personal cleansing.
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Surf Excel Since those early achievements in detergent and builder chemistry, new product activity has continued to focus on developing cleaning products that are efficient and easy to use, as well as safe for consumers and for the environment. Here's a summary of some of thoseinnovations: 1950s Automatic dishwasher powders Liquid laundry, hand dishwashing and all-purpose cleaning products Fabric softeners (rinse-cycle added) Detergent with oxygen bleach 1960s Prewash soil and stain removers Laundry powders with enzymes Enzyme presoaks
1970s Liquid hand soaps Fabric softeners (sheets and wash-cycle added) Multifunctional products (e.g., detergent with fabric softener)
1980s Detergents for cooler water washing Automatic dishwasher liquids Concentrated laundry powders
1990s ] Ultra (superconcentrated) powder and liquid detergents Ultra fabric softeners Automatic dishwasher gels Laundry and cleaning product refills Dr. Amedkar BBM College, Shimoga
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Pages: SURFACTANTS IN DETERGENTS A detergent is an effective cleaning product because it contains one or more surfactants. Because of their chemical makeup, the surfactants used in detergents can be engineered to perform well under a variety of conditions. Such surfactants are less sensitive than soap to the hardness minerals in water and most will not form a film. Detergent surfactants were developed in response to a shortage of animal and vegetable fats and oils during World War I and World War II. In addition, a substance that was resistant to hard water was needed to make cleaning more effective. At that time, petroleum was found to be a plentiful source for the manufacture of these surfactants. Today, detergent surfactants are made from a variety of petrochemicals (derived from petroleum) and/or oleochemicals (derived from fats and oils). Petrochemicals and Oleochemicals Like the fatty acids used in soapmaking, both petroleum and fats and oils contain hydrocarbon chains that are repelled by water but attracted to oil and grease in soils. These hydrocarbon chain sources are used to make the water-hating end of the surfactant molecule.
Other Chemicals Chemicals, such as sulfur trioxide, sulfuric acid and ethylene oxide, are used to produce the water-loving end of the surfactant molecule. Alkalis As in soapmaking, an alkali is used to make detergent surfactants. Sodium and potassium hydroxide are the most common alkalis.
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How
Detergent
Surfactants
Are
Made
Anionic Surfactants The chemical reacts with hydrocarbons derived from petroleum or fats and oils to produce new acids similar to fatty acids. A second reaction adds an alkali to the new acids to produce one type of anionic surfactant molecule. Nonionic Surfactants Nonionic surfactant molecules are produced by first converting the hydrocarbon to an alcohol and then reacting the fatty alcohol with ethylene oxide.
These nonionic surfactants can be reacted further with sulfur-containing acids to form another type of anionic surfactant. HOW SOAPS AND DETERGENTS WORK
These types of energy interact and should be in proper balance. Let's look at how they work together. Let's assume we have oily, greasy soil on clothing. Water alone will not remove this soil. One important reason is that oil and grease present in soil repel the water molecules. Now let's add soap or detergent. The surfactant's water-hating end is repelled by water but attracted to the oil in the soil. At the same time, the water-loving end is
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Surf Excel attracted to the water molecules. These opposing forces loosen the soil and suspend it in the water. Warm or hot water helps dissolve grease and oil in soil. Washing machine agitation or hand rubbing helps pull the soil free.
MANUFACTURING OF POWDER DETERGENTS Powder detergents are produced by spray drying, agglomeration, dry mixing or combinations of these methods. In the spray drying process, dry and liquid ingredients are first combined into a slurry, or thick suspension, in a tank called a crutcher (1). The slurry is heated and then pumped to the top of a tower where it is sprayed through nozzles under high pressure to produce small droplets. The droplets fall through a current of hot air, forming hollow granules as they dry (2). The dried granules are collected from the bottom of the spray tower where they are screened to achieve a relatively uniform size (3). After the granules have been cooled, heat sensitive ingredients that are not compatible with the spray drying temperatures (such as bleach, enzymes and fragrance) are added (4). Traditional spray drying produces relatively low density powders. New technology has enabled the soap and detergent industry to reduce the air inside the granules during spray drying to achieve higher densities. The higher density powders can be packed in much smaller packages than were needed previously.
Agglomeration, which leads to higher density powders, consists of blending dry raw materials with liquid ingredients. Helped by the presence of a liquid binder, rolling Dr. Amedkar BBM College, Shimoga
Surf Excel or shear mixing causes the ingredients to collide and adhere to each other, forming larger particles. Dry mixing or dry blending is used to blend dry raw materials. Small quantities of liquids may also be added.
PACKAGING The final step in the manufacture of soaps and detergents is packaging. Bar soaps are either wrapped or cartoned in single packs or multipacks. Detergents, including household cleaners, are packaged in cartons, bottles, pouches, bags or cans. The selection of packaging materials and containers involves considerations of product compatibility and stability, cost, package safety, solid waste impact, shelf appeal and ease of use.
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Surf – Mummy's best friend Launched in 1959, Surf was the first in the Indian detergent powder market. Over the years, Surf has anticipated the changing washing needs of the Indian homemaker and constantly upgraded itself. Surf Excel, India's largest selling compact detergent powder, in its newest avatar promises to tackle the toughest stains without damaging the color of the fabric. This is because only Surf Excel has smart sensors that can differentiate stains from colors. Now you don't have to worry about tackling the really tough stains, especially on your colored clothes anymore. 'Surf Excel Hai Na!' For those who seek the Surf Excel clean in the front loaders, the specially designed low suds formulation Surf Excelmatic promises to give just that a superlativeclean. Those preferring the modern and convenient way to wash can rely on Surf Excel Liquid. The liquid form penetrates deep allowing great wash results. For the really tough stains, you can apply the liquid directly on the body of stain (through a stain treater) - you will see tough stains being tackled with ease. With years of laundry expertise, Surf Excel now has a Careline,
[email protected] that can answer all queries on fabric care
CHAPTER - 3 Dr. Amedkar BBM College, Shimoga
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HISTORY OF WASHING POWDER
Surf Excelmatic relaunched with improved formulation Mumbai May 5, 2000 Exclusive detergent for front-loading washing machines Hindustan Lever Limited (HLL) has re-launched its top of the line variant of Surf Excel, the Surf ExcelMatic washing machine detergent, with an improved formulation.
A front loader specialist, Surf ExcelMatic makes it easier to tackle the widest range of tough stains in front loaders. Surf ExcelMatic is designed to meet consumer expectations of top performance from their front loading washing machines. Ordinary detergents produce excessive lather, which cushions the impact of the tumble wash in front loader washing machines. This can harm the machine, besides compromising on the quality of cleaning. New Surf ExcelMatic has a special low-lather formulation, specifically created for the tumble wash technology of front loader. This allows clothes to tumble freely, squeezing out a range of tough stains. The result is an excellent stain-free and gentle clean, significantly better than that of ordinary highfoaming detergents. New Surf ExcelMatic has been tested on all existing front loader machines in the country and has been found to produce the best results. Siemens, the inventors of front loading (or tumble wash) technology also recommend Surf ExcelMatic for front loaders. Surf ExcelMatic is available at 1kg and 500 gm packs, priced at Rs 160 and Rs 85 respectively. .
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CHAPTER- 4 MARKETING FUNCTIONS
DEFINITION Marketing is a comprehensive term and it includes directing and facilitating the flow of goods and services from produces to consumers in the process of distribution. Marketing comprises all activities involved in the determination and satisfaction of consumer needs. Marketing encompasses all activities of exchange conducted by producers and middleman in commerce for the purpose of satisfying consumers needs or demand. The American Marketing Association defines marketing as ‘the performance of business activities that direct the flow of goods and services from produces to consumers or users’. This definition does not clarify the Dr. Amedkar BBM College, Shimoga
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business activities to be includes in marketing. It only emphasis distribution aspects of the market and fails to stress managerial aspects of marketing.
Philip Kotler defines marketing as ‘The set of human activities directed at facilitating and consummating exchange’. The essence of marketing is exchange of products and the transaction is to satisfy human needs and wants with the changing of time, definition is prescribed in the past also requires modification. The institute of Marketing of the United Kingdom defined marketing is the inactive management function, which promotes trade and employment by assessing consumer needs and initiating research development to meet them. If co-ordinates the resources of prevention and distribution of good and scope of total effort required to sell profitably the maximum production to the ultimate users. Accordingly the Council of the Institute of the Marketing defined marketing as ‘The management function which organises and directs all these business activities involves in assessing and converting customer purchasing power into effective demand for a specific product service and a moving the profit target or other objectives set by a company.
WHAT MARKETING DOES?
It is available to understand what is included in marketing activities, marketing is invariably connected with the insight or research into customer behaviour, namely what the customers want, need, prefer and value, who are the prospects and where they live; their incomes and mode of spending; how they make purchase decisions and so on.
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Marketing deals with the product policy that is what type of products or products should be manufactured. The determination of price and the terms of payments are also covered in the product policy. The amount of discount to be allowed to the distributor of the products and whether to assists on cash payments or allow the customer deferred payment facilities, must also be considered while formulating the product policy. Marketing decides the channels of distribution taking in to consideration the availability of the distributor, salesmen compensation, training of salesmen and placement of salesmen. Marketing is also concerned with advertising and promotion. Example, where the advertising should be done on the radio or in magazines or newspaper or not at all. It also decides the mode of advertising programmes as well as sales promotional methods and displays finally.
It also deals with the type of organisation required for
marketing effectiveness. Thus, marketing tries to define the right type of products in terms of the company’s objectives and attempts to make it available at right place and at the right price, with the right promotion.
All these function attempts to
perform in turns of the consumers at who the activities are aimed. This is described as ‘consumer orientation’; decisions in these areas are assisted by marketing research. MEANING OF MARKETING
Marketing refers to all business actives involved in the determined creation and satisfaction of human wants at fair prices. The meaning of the marketing is studied under two concepts;
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a. Traditional marketing concepts b. Modern marketing concepts According to traditional marketing concepts marketing refers to the sum total of all those activities, which are related to the flow of goods from the point of origin to the point of consumption. Traditional concepts were sales-oriented mere distribution is give importance in traditional concept. According to modern marketing is the process of discovering and translating consumer wants in to products and services and the in turns of helping, making it possible for more and more consumers to enjoy more and more of these products and services. Modern marketing is consumer oriented it is designed to satisfy the needs, requirements and acceptance of the consumer. Consumer oriented marketing is different job. It is conditioned by two sets of factors, which are as fallows; 1. Controllable factors 2. Uncontrollable factors Controllable factors are those factors, which cannot be controlled by an organisation.
They include consumer’s behaviours, trader’s behaviour,
competitor’s behaviour and government behaviours. IMPORTANCE OF MARKETING:
Marketing is recognised as most significant activity in our society. Marketing is all around us. Our very existence, our entire economic life style are continuously affected by wide range of marketing activities.
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The food we eat, the cloths we wear, the house that shelters us, the comforts we enjoy at our home and work place, the wealth and welfare activities which gives us peace of mind, all these are greatly effected each day by the marketing systems. Marketing alone can give goods and services we want and used at our doors, our entire economic life fails to shoulders its main responsibility discovering and serving market demand. Marketing has achieved social importance because it is entrusted with the task of creation and delivery of standard of living in society. Marketing is the vital connecting link between producer and consumers.
Optimum
production and optimum consumption can secure optimum standard of living in an economy. Marketing is directly responsible to maintain equilibrium between mass production and mass consumption. FUNCTIONS OF MARKETING Clark and Clark classified marketing functions are as fallows:
MARKETING FUNCTIONS
Functions of Exchange
Functions of Physical supply
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Facilitating Function
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a) Buying and Assembling b) Assembling
a) Transportation b) Storage
a) Financing b) Risk bearing c) Standardization and grading d) Marketing Information
1. Function of exchange:
Function of exchange refers to the functions related to the transfer of goods from the producers or merchants to the consumer.
They
include buying and selling. Buying in marketing implies buying goods by manufacturers for using production for re-sale. Buying refers to purchase of right quality of goods in right quantity at right time from the right source at right price. Assembling starts only after buying is over. Collection of some type of goods bought from different places at one central point is knows as assembling.
Selling is the sum total of all those activities that help in transfer of goods from seller to the buyer at the profitable price. Selling includes following functions. 1. Product planning 2. Contractual function
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3. Demand creation 4. Negotiations 2. Functions of Physical Supply: A physical supply function refers to those functions, which are connected with the creation of time and place utility. This include: a. Transportation: It refers to physical movement of goods from the place of production to the place of consumption. Transportation is an integral part of marketing b. Storage: It refers to holding and preserving of goods between the time of their production and time of their use. 3. Facilitating Functions:
Facilitating functions refers to all those marketing functions, which facilitate process of exchange. They include: a. Financing: Financing refers to provision of finance for meeting the financial requirement of various activities.
b. Risk Bearing: Marketing involves a number of risks owing of a force contingencies. There may be determination of goods in the water houses or loss by theft or loss by fire. They may become unsalable. c. Standardisation and grading: Dr. Amedkar BBM College, Shimoga
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Standardisation means establishment of standards based on certain physical properties of the product. Standards are set by referring to size, colour, shape, taste, weight ext., Sorting out the goods according to certain standard and classifying them to different groups constitute grading. d. Market information: Accurate and up-to-date information of the market condition is essential for successful marketing. With the help of information many of the marketing problems can be solved or new products can be introduced or policy may be changed.
MARKETING MIX POLICY
The marketing mix is the interplay of 4 basic and inter related elements of a marketing program the 4 P’s –Product, price, promotion and physical distribution. They will be examined one at a time, but its of primary importance that to realise that they are interdependent.
A
change on one element usually brings on a change in the others. Prosper or chestrotion of these elements is the key to a sound marketing programme. a. Product mix policy of Hindustan Lever Limited:
One major management aspect involved in product policy is the decisions concerning product mix.
The product mix is one of the
elements in product policy. This more important now a days since most of the manufacturers are diversifying their products. Dr. Amedkar BBM College, Shimoga
The products
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policy decisions are made of these different levels; products mix, product items and product lines. These three in one elements make the product planning effective. Product mix is the list of all products offered for sale by a company. The composite of products offered for sale by a firm or a business unit. The product mix is three dimensioned, it has breadth, depth and consistency. Breadth is measured by the number of variety of products manufactured by a single manufacture. Depth refers to the assortment of sizes, colours and models offered with in each product line. Consistency refers to the close relationship of various product lines either to their end use or to production requirements or to distribution channels or to other variables. Branding policy of Hindustan Lever Limited: The term ‘Brand’ is a comprehensive one. In one-way or the other, it includes more particularised terms. A brad is a name, symbol or design or a combination of them, which is intended to identify the goods or service of one seller or group of sellers and to differentiate them form those of competitors. A brand name consists of words and letters. A brand mark is a part of the brand. It appears in the form of symbol or design. The brand and trademark more or less synonymously are to be differentiated.
A trademark is an
identifying mark that gives legal protection to a company. Hence all the products of that, if it is so desires, will go with the same trade mark. It is for the customers to identify the company for its good will. The entire products manufactured by the Hindustan lever will have the brand name printed and also covered about the stickers of the product.
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Because of the popularity of the ‘Hindustan Lever’ brand name it easy for the agent to market the product without much difficulty.
It is also
advantage on part of the consumers to purchase Surf Excel Washing powder without any suspects about the quality of the products.
Packaging policy of Hindustan lever limited: A good package is the representation of the artistic combination of the designer’s creative skills and the product and marketing and sales knowledge of the manufacture management team. The development of technicians, the advertising man, the marketing expert, the sales department and the top management. At time, it may include in the team of the use of packaging committee and packaging directions, the role of independent designer and delegation of market research in the solution of the packaging problems. Packaging is general group of activities in product planning, which involve designing and producing the container or wrapper for a product packaging is a brand activity that requires careful consideration by the management. The potentialities of packaging especially in the field of demand creation have been widely accepted now. It is often remarked as a silent salesman. This is perfectly so because of its advertising appeal, identifying power and intrinsic value. b. Pricing policy of Hindustan lever limited: One of the most important and critical areas in marketing management is the pricing of product. It is the second’ P’ in the marketing mix. Decisions on pricing have considerable effect in marketing. A wrong pricing decision Dr. Amedkar BBM College, Shimoga
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can nullify the effect of al right decisions relating to price and reflect many things. Price is a vital importance to both buyer and sellers.
In money
economy without price there can be no marketing. Price is one of the most important elements in the marketing mix. It is only element in the marketing mix that produces revenue, all other elements represents cost. Hence companies will have to give utmost importance to pricing and handle it very carefully. Price is set independently of the rest of the marketing mix rather than as an intrinsic element of market positioning strategy and price is not varied enough for different product items and market segments. The price of various products of Hindustan Lever Limited are done effects careful and through investigations of the cost of the goods, the market position, the competitors and the rise in price etc. As for as pricing policy is concerned, they will give least important to competitive because they have competitive monopoly over the market. c. Distribution policy of Hindustan lever limited. In the modern world, production and distribution have become very complex. Goods are produced in far away places, where as consumers are scattered throughout the country and abroad under the circumstances. The producers will not be able to sell goods directly to the ultimate consumers. The reasons are many; the producer’s lacks financial resources, he has to maintain large-scale force. The products may not justify the establishment of separate sales outlets, problems of management and control arise instead of spending a lot of time and energy on distribution, he can concentrate on production, and so on. Naturally he has to depend on intermediaries for the physical distribution of his goods. Dr. Amedkar BBM College, Shimoga
Surf Excel
A channel of distribution is an organised network of agencies and situation, which in combination performs all the activities, required linking producers with users and users with producers, in order to accomplish the marketing task. The channel enables the seller to find out the users of its merchandise and helps the buyers to obtain the product he wants. A channel of distribution for a product is the route taken by the title to the product as it moves from the producers to the ultimate consumers or industrial users. A channel is the pipeline though which a product follows on its way to the consumers. The manufacturer puts his products in to the online or marketing channel and carious marketing people move it along to the consumers at the other end of the channel. A channel of distribution is the particular route through which a product moves from the manufacturer to the consumer who wants it and in this process the little is also transferred to the consumer. A channel usually includes three parts the producer, final consumer and the middleman who are engaged in the transfer of title. Channel of the distribution of the company is follows; Hindustan Lever Limited
Dealer Whole Salers Retailers Consumers
Dr. Amedkar BBM College, Shimoga
Surf Excel
d. Promotion mix policy of Hindustan lever limited: The term promotion is very often needed as synonymous word for selling, but selling is narrow term, which includes only transfer of title. Promotion involves the creation and expansion of demand. After product planning and development, it is introduced in the market and its demand is enhanced through the promotional activities. Promotion is any communicating activities whose main objectivity’s are to move forward product service or idea in a channel of distribution. It is an effort by the marketer to inform and persuade buyers to accept research recommend or used in the article, service or idea which is being promoted. The promotional activity always attempts to effect knowledge, attitude and preferences and behaviour of buyers. The overall purpose of promotion is to influence buyer’s behaviour and to establish a link between the products and consumers.
The increased
competition between different industries has made customers more selective in their buying choice and a good promotional program is needed to reach them. A good promotional mix involves by the company or co-operation of sales force activities and other promotional efforts. Each promotional route has its own unique characteristics and cost.
Dr. Amedkar BBM College, Shimoga
Surf Excel
******** CHAPTER – 6 ANNALYSIS OF SURVEY FINDINGS INTRODUCTION Today, consumer is the king in the market, consumer is only Judge. The repetition of a product is entirely dependent upon his attitude towards the product. So his satisfaction should be the ultimate motto of the producers and marketer.
Consumer’s interest should be taken in to consideration while
taking marketing decision.
It is through consumer satisfaction only the
producer and marketer can improve their sales and profit. Much opinion will come when a survey is made for preference, improvement of a product, but the opinion of consumer is more important. This report gives analysis of opinion collected from the customer regarding marketing of washing powder especially Surf Excel washing powder.
Consumer survey finding
Dr. Amedkar BBM College, Shimoga
Surf Excel
The total number of respondent’s interviewed were 50. Out of these almost all consumers had used washing powder fully and it was observed that the Surf Excel washing powder is quite well known in the city.
TABLE SHOWING DEMOGRAPHICAL FACTORS Age
Annual
OCCUPATION
income In Rs.
Stud e n t
Bellow
Bellow
7
20
50000 50000-
5
years
Self employ ee
Pvt.
100000 100000 150000
Dr. Amedkar BBM College, Shimoga
employ
Empl o y e e 1
1
Govt.
Others Total
ee
8 6
Surf Excel 150000
1
1
2
2 4
16 7
-&
20
above Total to Bellow
35 years
13 3
1
50000 50000-
6
5
4
15
100000 100000
1
3
1
5
5
27
150000 150000
1
-&
35
above Total to Bellow
45 years
10
12
50000 50000-
2
100000 100000
1
2 1
1
150000 150000
1
1
1
4
2
-&
45 years & above
above Total Bellow 50000 50000-
1 1
1
100000 100000 150000
Dr. Amedkar BBM College, Shimoga
5 1
4 2
1
Surf Excel 100000
1
-
Total
150000 Total Bellow
10
50000 50000-
11
5
7
23
100000 100000
1
4
4
7
1
1
2
4
23
10
18
2
6
1 1
5
2 16
150000 100000 150000 Total
1
50
Classification of respondents based on educational qualification & gender Qualificatio No. of respondents n Male Female Bellow SSLC -1 P.U.C 1 3 Graduate 14 24 Post graduate 4 3 Others --Total 19 31
Percentage Total 1 4 38 7 -50
2 8 76 14 -100
From the above table indicates educational background of respondents, out of 50 respondents 2% of respondents belong to the category of SSLC. 8% of respondents belong to the category of PUC. 76% of respondents belong to the category of Graduate. 14% of respondents belong to the category of postgraduate. Therefore 76% of the respondents are graduates.
Dr. Amedkar BBM College, Shimoga
Surf Excel
% 0% 2% 8%
14%
76%
Bellow SSLC
P .U.C
Graduate
P ost graduate
Others
Table showing the usage of washing powder by respondents Response Use Not use Total
No. of respondents 50 0 50
Percentage 100 0 100
The above table shows 100% of the respondents have used washing powder.
Dr. Amedkar BBM College, Shimoga
Surf Excel
100 90 80 70 60
100
50 40 30 20 10
0
0 Use
Not use
Use
Not use
Table showing usage branded washing powder Washing
No. of respondents
Percentage
powder Branded Unbranded Total
50 0 50
100 0 100
Dr. Amedkar BBM College, Shimoga
Surf Excel From the above table we can conclude that 100% of the respondents have used cloth-washing powder & 100% were is used branded washing powder.
120
100
80
60 100 40
20 0
0 Branded
Unbranded Branded
Unbranded
Table showing types of branded washing powder Brands Surf excel Ariel Nirma Rin
Dr. Amedkar BBM College, Shimoga
No. of respondents 32 6 4 3
Percentage 64 12 8 6
Surf Excel Henko Others Total
5 -50
10 -100
Above table shows that 64% of people use Surf excel, 12% of them using Ariel, 8%, 6% & 10% of them using Nirma, Rin, Henko respectively no one using other than above specified brands.
70 60 50 40 30
64
20 10
12
8
6
Nirma
Rin
10
0 Surf excel
Ariel
Henko
0 Others
P ercentage
Table showing no. of respondents who had used Surf Excel Response Used Not used Total
Dr. Amedkar BBM College, Shimoga
No. of respondents 32 18 50
Percentage 64 36 100
Surf Excel Above table shows that 32 respondents i.e. 64% of people use Surf Excel & 36% of people not used the Surf Excel.
70 60 50 40 64 30 36
20 10 0 Used
Not used Percentage
Table showing the regular uses of surf excel Response Yes No Total
No. of respondents 32 -32
Percentage 100 -100
Above table shows that 32 respondents are regular of Surf Excel & that means 100%.
Dr. Amedkar BBM College, Shimoga
Surf Excel We can conclude that 32 people are uses Surf Excel.
100%
0%
Yes
No
Table showing since how long respondents are using Surf Excel. Particulars Since 1 year 1-3 years 3-5 years Above 5 years Total
No. of respondents 20 5 6 1 32
Percentage 64 16 17 3 100
Above table shows that 64% of respondents are using Surf Excel from since 1 year, 16% of people are using from 1-3 years, 17% of people are using from 3-5 years & remaining 3 % are using Surf Excel from more than 5 years.
Dr. Amedkar BBM College, Shimoga
Surf Excel We can conclude that 64% of respondents are more using from one year.
70 60 50 40
64 30 20
17
16
10
3 0 Since 1 year
1-3 years
3-5 years
Above 5 years
Percentage
Table showing which Surf do respondents use Particulars Surf Excel Surf Excel Matic Total
No of respondents 25 7 32
Percentage 78 22 100
Above table shows that 78 of respondents are using Surf Excel and 22% of the people are uses of Surf Excel Matic. We conclude that the purchase of Surf Excel is more i.e. 78%.
Dr. Amedkar BBM College, Shimoga
Surf Excel
80 70 60 50 78 40 30 20
22
10 0 Surf Excel
Surf Excel M atic Percentage
Table representing the factors, which influenced respondents to adopt Surf Excel Factors Brand image Quality Fragrance Price Advertisement Others Total
Dr. Amedkar BBM College, Shimoga
No. of respondents 18 7 6 1 32
Percentage 57 22 18 3 100
Surf Excel From the above table it is clear that 57% of respondents are influenced by brand image, 22% of respondents are influenced by quality, 18% of respondents are influenced by fragrance & remaining 3% of respondents are influenced by price. No one influenced by Ad & other factors. Here we can conclude that brand image plays a major role in purchasing the surf Excel i.e. 57%.
60 50 40 30
57
20 10
22
18 3
0
0
0
Percentage
Table showing opinion about quality of Surf Excel Opinion Excellent Good OK Poor Total
No of respondents 17 15 --32
Percentage 53 47 --100
From the above table it is clear that 53% of respondents opinion are excellent, 47% of respondents opinion are good.
Dr. Amedkar BBM College, Shimoga
Surf Excel
So, to conclude that major percentage of respondent’s opinion towards Surf Excel performance is excellent.
60 50 40 30
53
47
20 10 0
0
0 Excellent
Good
OK
Poor
Percentage
Table showing opinion about Ad. Campaign of Surf Excel Particulars Entertaining Creative Informative Creates desire Boring No impact Total
Dr. Amedkar BBM College, Shimoga
No. of respondents -12 18 2 --32
Percentage -37 56 7 --100
Surf Excel From the above table it is clear that 37% of respondents opinion about advertisement is creative, 56% is informative & 7% creates desire. We can conclude that 56% of people opinion about Ad. Campaign of Surf Excel is informative.
60 50 40 56
30 37
20 10 0
7
0
0
0
Percentage
Part-C (For the non-users of Surf Excel) Table showing does non-users ever used Surf Excel Opinion Yes No Total
No. of respondents -18 18
Percentage -100 100
Above table shows that 18% of respondents are non-users of Surf Excel.
Dr. Amedkar BBM College, Shimoga
Surf Excel
100 90 80 100
70 60 50 40 30 20
0
10 0 Y es
No Percentage
Table showing why respondents did not go for trail of Surf Excel Particulars Do not want
No. of respondents to 13
Percentage 75
change your brand No interest in Surf 2
10
Excel Price matters Others Total
15 -100
3 -18
Above table shows that why respondents did not go for trail of Surf Excel because 75% of people “do not want to change their brand”, 10% of people not interested in Surf Excel, 15% of people goes for price of Surf Excel.
Dr. Amedkar BBM College, Shimoga
Surf Excel We can conclude that respondent those who do not change their brand are more i.e. 75%. PROBLEMS OF THE COMPANY
1. Competition:
80 70 60 50 40
75
30 20 10
15
10
0
0 Do not want to No interest in Surf change your Excel brand
Price matters
others
Percentage
Every product in this world has to face competition and must compete to stand up in this modern competitive market.
So like every other product
toothpaste is also on and this toothpaste has more competition as compared with any other product in this business world. (A) Competition By Brands: At present washing powder has to compete in different ways concerned to brands: Brand of foreign nation and different company. Brand of own nation but different company. Brand of own nation of the same company.
Dr. Amedkar BBM College, Shimoga
Surf Excel
(B) Competition through packaging. (C) Competition through price. 2) Difficulty in getting sales force: The other main problem in the decrease for the sales of washing powder is the lack of sales force. There are many more problems to be faced to appoint the sales personnel. Firstly, men who are educated (at least graduate) do not come forward to sell the washing powder. They think it is a black spot for the prestige and others who come may not have required knack and selling ability or skill. Then the company has the problem of searching able one. So this is one of the problems that is been faced for the appoint of sales force. So when this is a shortage of sales force, then automatically the stock will not be taken to all parts of the country, this is one of the main causes of the dealers of sales. 3) Frequent changes in motives of customer: The next point for the cause of decline in the sales of washing powder is behaviour of the consumer. important role.
Here consumer behaviour plays a very
If the behaviour of the consumer changes physically or
mentally it effects on the sales of washing powder very much. 4) Lack of sales promotion: The next cause for decline in sales of washing powder is the lack of sales promotion activities.
In a specific sense promotion include those
marketing activities other than personal selling, advertisement and publicity Dr. Amedkar BBM College, Shimoga
Surf Excel
and stimulating consumer who are purchasing and dealers effectiveness. Such as displays, fair and exhibitions and various non-recurrent selling efforts not in the ordinarily routine. So, when there is no proper sales promotion activities, how can sales of a product increase that to a product like washing powder, which has no much competition in advertisement form other brands? 5) Lack of Incentives There are no proper incentives given to consumer when other substitute products are giving incentives or gifts to the consumer. Then naturally people will purchase the substitute product, and then the sales will goes down. So incentives for toothpaste like toothbrush tongue cleaner, toilet soap etc. Should be given. Now a day’s consumers log on for the something extra more than their money. So lack of incentives is also one of the main problems on the decrease of sales. 6) Inadequate orders and supplies The one of the cause for the decline of sales from the manufacturer is fall flow. When there is inadequate order or when there is a fall of demand for toothpaste, there will be inadequate supply. This also leads to a decrease in a sale of toothpaste. 7) Unstable consumer performance
Consumer performance, which is unstable, is also one of the leading factors, which effect the sales. Because consumes may be log on to substitute product. This will happen when there is heavy raise in price or when he influenced by friends, neighbours and advertisement etc.,
Dr. Amedkar BBM College, Shimoga
Surf Excel
8) Higher excise duty and taxation The main problem that the company and firm are facing now is the burden of high excise duties and heavy taxation imposed on toothpaste by central government. Such taxes are entry tax, sales tax, turnover tax etc. So higher excise duties and heavy taxation causes in decrease of sales effort.
CHAPTER- 5 HLL & FAMILY – IN THE EYES OF PRESS SOME COLLECTIONS PRESS RELEASE Surf Excelmatic relaunched with improved formulation Mumbai May 5, 2000 Exclusive detergent for front-loading washing machines Hindustan Lever Limited (HLL) has re-launched its top of the line ariant of Surf Excel, the Surf ExcelMatic washing machine detergent, with an improved
formulation.
A front loader specialist, Surf ExcelMatic makes it easier to tackle the widest range of tough stains in front loaders. Surf ExcelMatic is designed to meet consumer expectations of top performance from their front loading washing
Dr. Amedkar BBM College, Shimoga
machines.
Surf Excel
Ordinary detergents produce excessive lather, which cushions the impact of the tumble wash in front loader washing machines. This can harm the machine, besides compromising on the quality of cleaning. New Surf ExcelMatic has a special low-lather formulation, specifically created for the tumble wash technology of front loader. This allows clothes to tumble freely, squeezing out a range of tough stains. The result is an excellent stain-free and gentle clean, significantly better than that of ordinary highfoaming detergents. New Surf ExcelMatic has been tested on all existing front loader machines in the country and has been found to produce the best results. Siemens, the inventors of front loading (or tumble wash) technology also recommend Surf ExcelMatic for front loaders. Surf ExcelMatic is available at 1kg and 500 gm packs, priced at Rs 160 and Rs 85 respectively. . HLL Launches Hindustan Lever Network Makes a foray into Network Marketing Mumbai, January 28, 2003 - Hindustan Lever today announced the launch of Hindustan Lever Network, a unique Network Marketing opportunity. Hindustan Lever Network aims to be the most preferred business opportunity by partnering its Consultants to success and providing them with a business and self-development opportunity that is truly rewarding. HLL has so far been present in the Direct Selling Channel with Aviance, an international range of customized beauty solutions. With Hindustan Lever Network, HLL plans to aggressively enter into other consumer categories by offering its Consultants an exclusive and complete range of high quality, high-performance products. The first such initiative through the launch of the Lever Home range of products for home care, Dr. Amedkar BBM College, Shimoga
Surf Excel
kitchen care and laundry care will be in the market in February 2003. Aviance would come under the umbrella of Hindustan Lever Network as the personal care beauty brand in this channel. HLL plans to grow and establish the Hindustan Lever Network business through large-scale Consultant recruitment and retention and by further expanding the range of product offerings to its Consultants. The Hindustan Lever Network business model is different from its earlier model in the following ways: •
The Hindustan Lever Network business opportunity will focus on building
male and female entrepreneurs by actively partnering them to success. This would be achieved by providing them an earning and self-development opportunity that is both competitive and unique. •
This new Network Marketing Channel would now carry a range of products
across multiple categories like Home Care, Kitchen Care, Laundry Care, Male Grooming and Foods, in addition to the Aviance range •
The New Compensation plan provides new exciting ways of earning
substantial income in addition to offering rewards like revenue sharing through the innovative concept of “ pools” Announcing the launch of Hindustan Lever Network, Dalip Sehgal, Executive Director-New Ventures and Marketing Services, HLL, said, “HLL has built a reputation of trust and quality over the last 100 years. With its existing position of strength as the leading consumer goods company in India, HLL will leverage its capabilities across manufacturing, supply chain, R&D and consumer understanding to provide a strongly differentiated proposition in Hindustan Lever Network that redefines the business of Network Marketing.”
Dr. Amedkar BBM College, Shimoga
Surf Excel
Added, KK Rajesh, Business Head, Hindustan Lever Network, “HLL has touched the lives of millions of Indians through its products and other initiatives. We are confident that with Hindustan Lever Network, we will build a huge base of motivated entrepreneurs – our Partners in Success- by providing for them an exciting opportunity for earning and self- development. Our product and business training aids and programmes will help them build their basic skills for establishing a successful business of their own.
Hindustan Lever Limited's Chhindwara factory gets "Prashansa Patra" MUMBAI, April 9, 2002 : Hindustan Lever Limited's Chhindwara factory has received the National Safety Council's prestigious "Pranshansa Patra" award for its performance in safety. Mr. Sharad Yadav, Union Minister for Labour, presented the award at a function in Vigyan Bhavan, New Delhi, today, to the Factory Manager & the Personnel Manager. This award is in recognition of the elaborate systems set up in the factory for a safe working environment. The criteria for the award are various parameters of Safety, Health & Environmental activities. On-site implementation of safety performances, safety management, deployment of policies, review of the performance by top management, safe operating procedures, hazard analysis, occupational health & hygiene, environmental awareness and factory's contribution to promoting exchange of information and experience are some of them HLL CONFERRED WITH GOOD CORPORATE CITIZEN AWARD
Dr. Amedkar BBM College, Shimoga
Surf Excel
MUMBAI, April 8, 2002: Hindustan Lever Limited (HLL) has been conferred with the prestigious Good Corporate Citizen Award, for the year 2000-01, by the Bombay Chamber of Commerce & Industry (BCCI). Mr. M.S. Banga, Chairman of HLL, received the award from Mr. Keshub Mahindra, at a function held here today. THLL was selected by a panel of judges, comprising eminent persons from industry, the judiciary, administrators and the media. The award is presented on the basis of evaluating a company's initiatives in social investment, customer satisfaction and consumer awareness, environment protection, safety, employee welfare and training & education. HLL believes that "to succeed requires the highest standards of corporate behaviour towards our employees, consumers and the societies and world in which we live." HLL's operations are run in an environmentally sound and sustainable manner, ensuring that the processes and products conform to prescribed standards. HLL also supports rural development, education, caring for physically and mentally challenged children, destitutes and HIV-positive patients, and many other such activities. To highlight some results on sustainable development, during the period 1996 - 2000, HLL has achieved a reduction of 58% in the specific Water Consumption at its manufacturing sites, through a series of technology innovations.
Similarly,
the
reduction
achieved
in
specific
Energy
Consumption in manufacturing, measured for all energy inputs, aggregates to about 51% in the same period. There is still a sizeable scope for further reduction, and HLL is actively pursuing it. HLL also conducts a Watershed Management Project at Khamgaon factory in interior Maharashtra. The Tata Energy Research Institute (TERI) has recommended this project as a model worth emulating in the country's
Dr. Amedkar BBM College, Shimoga
Surf Excel
water-scarce regions. Among the benefits as of date, there has been remarkable improvement in the quality of soil. Along with the vegetation, this has resulted in an annual conservation of approximately 8000 cubic metres of water. HLL is also involved in a number of social development and community welfare activities. Among them is support to Asha Daan, a home for abandoned physically and mentally challenged children, the old and destitute, and the HIV positive, run in Mumbai by the Missionaries of Charity. The company runs a Rural Education Programme at Khamgaon. High quality audio-visuals have been created to assist primary school teachers in teaching. HLL set up Ankur, a centre for special children in Assam, in 1992 to impart special education and provide services to severely disabled children living in the area around HLL's Doom Dooma Tea Estates Ankur was vested with the prestigious Worldaware Business Award for Social Progress by HRH the Princess Royal in January 1999. HLL
ANNOUNCES
JOINT
VENTURE
FOR
ITS
SEEDS
UNDERTAKING MUMBAI, March 30, 2002: Hindustan Lever Limited (HLL) today signed a Joint Venture Agreement with India Seeds Holdings Limited (ISHL), a company incorporated in Mauritius engaged in the seed and biotechnology industry, with ISHL acquiring a 74% shareholding in HLL's subsidiary, Paras Extra Growth Seeds Limited (PEGSL). The capital base of PEGSL is being expanded for this purpose. The joint venture decision is in keeping with HLL's well articulated strategy to secure the future of its seeds business. HLL was advised by Lazard India.
Dr. Amedkar BBM College, Shimoga
Surf Excel
HLL's shareholders had earlier in the year approved the transfer of the company's seeds undertaking to PEGSL by an overwhelming majority of 99.56% votes in value through a postal ballot. The objective and purpose of the said transfer was to induct a suitable technology partner into the business who could add value through technology, know-how, marketing and product development. India Seeds Holdings Limited is an associate of Hicks Muse Tate Inc and Emergent Genetics LLC which are firms based in USA with global interests in seeds and biotechnology. Emergent Genetics LLC has extensive experience in the industry and have access to new seed traits through biotechnology and the operational expertise needed for their introduction and growth in new markets. Emergent's associates in seeds include Stoneville Pedigreed Seed Company (the second largest hybrid cotton seed company in USA), Produsem SA (a leading wheat seed producer in Argentina) and L Daehnfeldt A/s (a leading vegetable seed company in Denmark). The knowhow and expertise from Emergent and its associates will complement HLL Seeds business strengths in operations, marketing and distribution thereby adding significant value to the business. The existing strong franchise in Cotton seeds will be considerably strengthened through access to Biotechnology-based seeds traits of Emergent, with the recent approval of Bt Cotton Seeds by the Government of India. The seeds business undertaking of HLL which had a turnover of approximately Rs.100 crores will stand transferred with effect from March 30, 2002 on a "going concern" basis to PEGSL for a consideration of Rs.115 crores, and is likely to lead to Profit Before Tax of Rs. 72 crores for HLL. As already indicated above, the capital base of PEGSL has been expanded to finance this acquisition and in order to retain 26% shareholding in the
Dr. Amedkar BBM College, Shimoga
Surf Excel
expanded capital base, HLL has made further investment of Rs.7.19 crores in the equity capital of PEGSL. HLL RECEIVES LARGEST WEALTH CREATOR AWARD MUMBAI, January 11, 2002: Hindustan Lever Limited (HLL) has received the Motilal Oswal ‘Largest Wealth Creator’ Award for the period 1996-2001. HLL’s Finance Director, Mr. D. Sundaram, received the award on behalf of the company at a function here today. This is the 5th time that HLL has been conferred with this distinction. HLL has improved its ROCE from 53% in 1996 to 65% in 2000, achieved through growth, margin improvement and capital productivity. “HLL is on the right track towards providing long term value to shareholders. Even in the challenging market conditions of the last few years, HLL has continued profitable growth while conserving capital. This is reflected in the company’s ‘negative’ working capital and higher quantum of cash released from operations,” Mr. Sundaram said while accepting the award. For the 9 month period ended 30th September 2001, HLL’s Net Sales were Rs.8208.98 crores (+3.2%). Profit After Tax was Rs.1030.97 crores (+ 18.2%), while Net Profit was Rs.1204.93 crores (+ 36.8% HLL APPOINTS MINDSHARE FOR MEDIA PLANNING & BUYING Mumbai Jan 19, 2001 Hindustan Lever Limited (HLL) has assigned the media planning and buying of all its brands to MindShare, a part of the WPP group. The decision follows a comprehensive review by HLL last year of its media operations. Under the new arrangement, MindShare will also play a key facilitating role alongside the company's brand teams and creative advertising agencies for HLL's new Communication Channel Planning Process, which aims to Dr. Amedkar BBM College, Shimoga
Surf Excel
establish the most effective combination of marketing vehicles for its brands. Prior to consolidation, HLL's strategic media planning assignment was split between different agencies. Agency of Record responsibility for traditional media buying was handled by HTA-Fulcrum, a WPP group company, while the Outdoor and Rural Media was handled by another WPP Group Company, Ogilvy
and
Mather.
This consolidation of HLL's media planning and buying does not lead to any change in HLL's creative agency assignments. The creative agencies will continue to do the creative work for their respective accounts. Mr. M. S. Banga, Chairman of HLL said: "HLL is focussing its marketing effort behind fewer, larger brands. Our move to a consolidated media assignment reinforces HLL's commitment to simplify and focus its marketing investment for maximum return. This consolidated approach will improve the productivity
for
our
leading
brands".
According to Mr. K. S. Srinivasa Murty, Head of Strategic Services of HLL, "The communication channel landscape continues to grow and fragment, creating an increasingly large and complex planning environment. Our goal was to make our significant investment in brand communications work harder. Consolidation will provide a seamless linkage as we move from broad marketing communications mix planning, through strategic media planning to tacticalimplementation". He added: "MindShare was selected for this assignment because they offered the best combination of strategic resources and buying capabilities." Within MindShare, a group of specialists will focus on the increasing complexity of
Dr. Amedkar BBM College, Shimoga
Surf Excel
specific communication channels while another group will manage the planning
of
individual
brands.
HLL started the media review in October 2000. The consolidation of media resource will be implemented in a phased manner to give the media agency adequate time to establish its new organisation. It is expected that transition of business
will
be
completed
in
the
next
few
months.
About MindShare : MindShare, a part of the WPP Group, is the world's largest media investment management company with annual billings in excess of $17 billion. Globally, MindShare operates in over 50 countries. In India, MindShare will handle the combined media operations of JWT and O&M Agencies. MindShare was launched in September 1997 as a global concept with the goal of pooling the media planning, implementation and research operations of JWT (HTA
HLL announces e-commerce initiatives Mumbai HLL has launched a number of E-Commerce initiatives that will bring EBusiness to the heart of the Company's operations.
HLL's vision is "Connect, Attract and Fulfil" on a massive scale. In the supply chain for example, the vision is to link in Phase I with some 3000 stockists, 30,000 retailers and 100 suppliers spread over some 1000 locations. The size Dr. Amedkar BBM College, Shimoga
Surf Excel
of the ambition is based on HLL's unique ability to leverage on scale and technology and the development in the telecom infrastructure.
HLL believes that success on the E-Business domain will depend on three factors - Technology, Consumer Insight and Physical fulfillment. HLL has unique strengths in consumer understanding and the backbone of the vast distribution system to enable physical fulfillment. Technology will be sourced through
partnerships.
HLL's Internet vision encompasses three opportunity segments - Business Connectivity, Consumer Connectivity and Consumer Commerce. In the area of Business Connectivity, much has already been achieved leveraging existing technologies. The Internet gives the opportunity for the next quantum leap. HLL is creating an extranet covering its key stockists and retailers to optimise the supply chain right up to the front end. Similarly, an extranet is also being created covering the suppliers, factories and the purchasers with the aim of achieving real time, vendor-managed inventory. EBanking initiatives are also being piloted to enable paperless financial settlements. The Aviance business, for example, is being configured to be mainly run through the Net. In the area of Consumer Connectivity, HLL has already progressed some distance through the Pond's interactive website, Hello Hindustan and Mera Hindustan initiatives in the detergents business as well as events like Close Up Antakshari on the Net. Interactive kiosks for the Lakme and Pond's ranges are being tested out in a few cities - these enable a consumer to try out how various beauty products will look on the screen before buying them. However, increasingly, interactive communication on the Net will be consumer centric, rather than brand centric. Internationally, Unilever has announced ventures Dr. Amedkar BBM College, Shimoga
Surf Excel
such as the JV with iVillage, a woman's portal and participation in start ups such as Wowgo. HLL is exploring similar opportunities in India.
Consumer Commerce is the third leg of the opportunity. India is likely to take up E-tailing in a major way simultaneously and probably even faster than the development of supermarkets. HLL will participate in a major way in this development. Dedicated and focussed organisation within HLL comprising young managers has already been formed in each of the three opportunity segments. A web of relationships with the partners offering technology, financial services and connectivity is also being built
PRODUCTS/MARKETING O&M TO BE CLOSE-UP ADVERTISING AGENCY IN INDIA MUMBAI, March 6, 2003:Hindustan Lever Limited (HLL) has chosen O&M as the agency responsible for the advertising of Close-up toothpaste. O&M will be responsible for the brand only in India, while JWT will continue to be the agency in other countries. Close-up was introduced to the Indian market nationally in late eighties. It created the gel toothpaste segment and has since then garnered a share of 17% in the Rs.2000 crore toothpaste market of India. JWT has played a critical role in this growth during this period with their advertising inputs.
Dr. Amedkar BBM College, Shimoga
Surf Excel
As the brand looks ahead at future growth opportunities and evolving aspirations of its target consumers, it is examining all resources, including brand communication, which are integral to its future plans. In this context, HLL had late last year asked a select group of advertising agencies, including JWT, to share their views on the brand's future communication. This was done purely to ensure that the brand had the best inputs for its growth plans in future. The choice of O&M as the advertising agency for Close-up in India is the culmination of this consultative process. HINDUSTAN LEVER & PEPSI FORGE ALLIANCE TO OFFER RANGE OF HOT & COLD BEVERAGES SOFT DRINKS, TEA & COFFEE TO BE AVAILABLE FROM FOUNTAIN & VENDING MACHINES UNDER ONE ROOF Mumbai, January 16, 2003: In a path-breaking tie-up, two FMCG leaders, Hindustan Lever Ltd. and Pepsi Foods Pvt. Ltd. today formed an alliance in India to jointly market through a vending format a full range of hot beverages and soft drinks from their portfolio of world class brands. HLL brings to the alliance a well established presence and brand value in hot beverages, outstanding product development and backward integrated sourcing capability, expertise in vending and an extensive institutional channel base. Pepsi has strong brands, rich expertise in on premise retailing of cold beverages, extensive sales and distribution infrastructure, and a well developed network of retail outlets and dealers who sell Pepsi through fountain machines. The partnership leverages each other's strengths with an unbeatable business model that creates a powerful distribution base to market a unified portfolio of popular hot beverages and soft drinks through a combined Dr. Amedkar BBM College, Shimoga
Surf Excel
fountain, vending and institutional initiative. The area of collaboration for these two organisations will be in vending hot tea and coffee along with soft drinks across the country. The alliance will make available leading brands of the two FMCG giants - Lipton, Taj Mahal, Bru, Pepsi Cola, 7Up, Mirinda and other popular carbonated soft drinks through vending machines and fountains. With this alliance, HLL & Pepsi venture into offering hot beverages through the Pepsi distribution system for the first time in the country as part of their strategy to infuse new growth in the entire category of liquid refreshment beverages. In addition to the plain variety, hot tea will be available in Cardamom, Diet Cardamom, Ginger and Masala flavours, while hot coffee will have three varieties, Pure, Cappuccino and Mochaccino. HLL DOES NOT GAIN FROM DIVIDEND DISTRIBUTION TAX MUMBAI, March 5, 2003: Hindustan Lever Limited (HLL) clarifies that the company does not stand to gain due to the Budget 2003-04 proposal to replace the taxation of dividends at the hands of shareholders (including tax deduction at source) by a Dividend Distribution Tax at the hands of the company. A report to this effect that the company stands to gain out of the Dividend Distribution Tax in a section of the Press is incorrect. The Scheme of Arrangement for issue of bonus debentures and payment of special dividend, as approved by the shareholders on August 9, 2002, and approved by the High Court provides for issue of one bonus debenture of the face value of Rs. 6/- each for every share of Re. 1/- each. It further provides for a special dividend of Rs. 2.76/- for every share of Re. 1/- each to be paid simultaneous to the issue of bonus debentures, as a part of the integrated transaction. The tax deduction at source for both the bonus debentures Dr. Amedkar BBM College, Shimoga
Surf Excel
constituting "deemed dividend" and on the special dividend was to be made from the special dividend payable to the shareholders so that the face value of bonus debentures could be kept uniform at Rs. 6/- each The Scheme further provides that in the event of any change in the tax laws, the Board could make consequential changes in the Scheme to ensure that the outflow under the Scheme does not exceed the amount, as approved by the shareholders, at Rs. 1928 crores, being Rs. 1320.7 crores towards bonus debentures and Rs. 607.5 crores by way of special dividend. The proposed changes in the Budget for 2003-2004 have replaced the provision for taxation of dividend at the hands of the shareholders (including tax deduction at source) by a provision of Dividend Distribution Tax at the hands of the company at a flat rate of Rs. 12.81% (including surcharge). This change would, therefore, not benefit the company in any manner as averred in the Press report. Accordingly, the company would, subject to the approval of the Board in terms of the authority delegated to it under the Scheme, now bear the Dividend Distribution Tax at Rs. 219 crores (to be paid to the government) and distribute the balance of Rs.388.5 crores to the shareholders, by way of Special Dividend of Rs.1.765 per share of Re.1/- each, over and above the Bonus Debenture of Rs. 6/-. Accordingly, neither the Bonus Debentures as “deemed dividend” nor the special dividend would be taxable at the hands of the shareholders, while the outflow of the company at Rs. 1928 crores remains unaltered. The company is awaiting approval of the Reserve Bank of India under FEMA, 1999 to progress the Scheme
Dr. Amedkar BBM College, Shimoga
Surf Excel
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CHAPTER- 7 SUGGESTIONS & CONCLUSION
SUGGESTIONS 1.
As the price of washing powder are going higher and higher, it is
suggested to firm to increase its few capital so that purchase can be made in accordance with demand of the market so as to able to meet this demand. 2.
The advertisement should be very much increased. Now a day
the advertisement takes a very important role. Advertisement towards using Surf Excel washing powder should be made in full flow in the all available media’s like Television Magazines, radio and also by arranging contest, Lucky dips, scratch coupons etc. and giving incentives to stockist, warehouses and retailers etc.
Dr. Amedkar BBM College, Shimoga
Surf Excel
3.
Lot of sales promotional activities should be undertaken. It
includes personnel selling, advertising and publicity, stimulating consumer minds, displays shows and exhibition etc. When there is proper sales promotional activity, the sales starts to increase. 4.
Adequate orders and supplies should be maintained or other
wise the downward flow of washing powder will get in form. 5.
Consumers’ preference should be made to become stable, so that
he should always stick on the same brand, that is, he should not be let to divert his attention towards substitute product. 6.
The firm should have proper channel of distribution, so that the
ultimate consumer receives the product easily and at fair price, so proper distribution arrangement is essential to increase sale of Surf Excel washing powder. 7.
Proprietor of the firm should think of sales force. It should be
increase so that every dealer (Wholesaler and retailer) at every corner of Bhadravathi City will get product in time. Without proper sales force one or two salesman cannot cover this large area as whole in a lesser time and at proper time. Hence, there is a need for proper sales force. 8.
The company should give incentive to the retailers to develop
sales among consumers by retailers.
Dr. Amedkar BBM College, Shimoga
Surf Excel
9.
The company should offer credit facility to the sales agency,
which would result in pushing up the sales of Surf Excel washing powder more by the agency because it is only the liable of payment of credit. 10.
Periodical survey of the market from the company is necessary
to know the changing attitude of the consumers regarding the Surf Excel washing powder. 11.
The company should improve quality of product. It is necessary
to the company augment its competitive efficiency by increasing quality and decreasing cost of production. At present the company having lower market share as compared with other competitors. For that, the company should try to increase its market share by improving quality and sales of the product. 12.
The company should introduce the Surf Excel washing powder
in 30 gms at cost Rs. 3/-. CONCLUSION As already discussed Washing powder is Clothe care product, therefore it belongs to personal product division of Hindustan Lever Limited. Therefore for the purpose of increasing sales, it should maintain a popular brand image. In this connection the factors like goodwill of the company, quality or quantity and the price of the product plays a very important role. Therefore, a manufacturing concern should give attention for enlistment of goodwill, increase in quality and decrease in price. Further a wide publicity of different method should also be adopted.
Dr. Amedkar BBM College, Shimoga
Surf Excel
Most important problem of Surf Excel Washing powder is connected with few percentage of increase in sales year by year. It maintains the constant market share.
This is always not a good condition for any company to
improve and to flourish. This requires correct customer preference analysis, organisation of customer service, producers, and decrease in cost and increase in quality. Therefore the urgent need for Surf Excel is take-up convincing of customers by proper publicity and by motivating consumers by different methods. Company also requires proper motivations of dealers to make them more involved in Surf Excel sales. This report may offer them and give suggestion to change or modify their marketing strategy for achieving higher sales performance in the future year.
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Dear respondents;
Dr. Amedkar BBM College, Shimoga
Surf Excel
I, Ganesh Urs, student of final year BBM, Mountain view college of Management Science, Bhadravathi, Kuvempu University, conducting a survey on “SURF EXCEL” under the guidance of Mr. K.V. Giridhar, MBA. MA (Eco). PGDMM, PGDHRM in partial fulfilment of my curriculum. I shall be very greateful to you, if you could spare couple of minutes to this questionnaire. Your’s faithfully, Ganesh Urs Part-A Demographical factors Name: Address: Sex: Male Female Age: Bellow 20 years 20-30 years 35-40 years
Dr. Amedkar BBM College, Shimoga
Surf Excel
45 years & above Qualification: Bellow SSLC SSLC-PUC PUC-Degree Post Graduation Others(P.S) Occupation: Student Self employed Govt. employee Private employee Others (P.S) Annual income: Bellow Rs. 50000 Rs. 50000-100000 Rs. 10000- Rs.150000 Rs.150000- Rs. 200000 Part-B (Product details)
Dr. Amedkar BBM College, Shimoga
Surf Excel
have you used cloth washing Powder? Yes No If yes, which washing powder do you normally use in your house? Branded Unbranded If yes, which of the following do you use? Surf Excel Ariel Rin Henko Nirma Others (P.S) Have you ever used Surf Excel? Yes No (If, no please skip to part-C) If yes, have you regularly been using Surf Excel?
Dr. Amedkar BBM College, Shimoga
Surf Excel
Yes No
BIBLIOGRAPHY 1) Encyclopaedia 2) Marketing Management by Sherlekar Philip Kotler 3) News papers and Magazines and also Internet. 4) News papers.
Dr. Amedkar BBM College, Shimoga
Surf Excel
Dr. Amedkar BBM College, Shimoga
