SAAB MARFIN MBA                   A PROJECT REPORT                          ON  ANALYSING THE COMPETITOR FACTOR AND BOOSTI...
SAAB MARFIN MBA                 TABLE OF CONTENTS       1. STUDENT CERTIFICATE       2. ACKNOWLEDGEMENT       3. PREFACE  ...
SAAB MARFIN MBA                      EXECUTIVE SUMMARYThis project gives a comprehensive idea about the SALES AND DISTRIBU...
SAAB MARFIN MBAThe packet tea market continued to be extremely competitive with national, regional andlocal players vying ...
SAAB MARFIN MBAto its inherent convenience.Soups:Knorr Soups enjoy a large share in the nascent and small soup market and ...
SAAB MARFIN MBA          INTRODUCTION TO INDUSTRYFast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods(...
SAAB MARFIN MBASector OutlookFMCG is the fourth largest sector in the Indian Economy with a total market size of Rs.60,000...
SAAB MARFIN MBAover a 5-year period. It has been estimated that FMCG sector will rise from around Rs56,500 crores in 2005 ...
SAAB MARFIN MBA   10.Marico IndustriesBudget Implications on FMCG SectorThe Budget gives more focus on the agricultural/fa...
SAAB MARFIN MBA1933 as Lever Brothers India Limited. Its 41,000 employees are headed by Mr.HarishManwani, the non-executiv...
SAAB MARFIN MBANew Ventures• Hindustan Lever Network• Ayush ayurvedic products & services• SangamExports• HPC• Beverages• ...
SAAB MARFIN MBAdo so. Unilever now holds 51.55% equity in the company. The rest of the shareholding isdistributed among ab...
SAAB MARFIN MBAAs a measure of backward integration, Tea Estates and Doom Dooma, two plantationcompanies of Unilever, were...
SAAB MARFIN MBA1903   Brooke Bond Red Label tea launched.1905   Lux flakes introduced.1913   Vim scouring powder introduce...
SAAB MARFIN MBA1943   Personal Products manufacture begins in India at Garden Reach Factory.1944   Reorganization of the t...
SAAB MARFIN MBA1973   Mr. T. Thomas takes over as Chairman from Mr. V. G. Rajadhyaksha.1974   Pilot plant for industrial c...
SAAB MARFIN MBA       introduces Walls.1995   HUL and Indian cosmetics major, Lakme Ltd., form 50:50 joint venture - Lakme...
SAAB MARFIN MBABoard of Directors/ Key PersonnelMr. Harish Manwani          ChairmanMr D. Sundaram              Vice chair...
SAAB MARFIN MBA                     (Values in crores)                   (Source: www.hul.com)HINDUSTAN UNILEVER LOGO Logo...
SAAB MARFIN MBA              Ultimate symbol of vitality.DNA :      Double helix, the genetic blueprint of life & a symbol...
SAAB MARFIN MBATEA : A plant or extract of a plant ,such as tea. Also a symbol of growing & farming.FROZEN : The plant is ...
SAAB MARFIN MBA              OUT – OF – HOME BUSINESSHave you caught the tail of a new trend in town? Have you as yet spot...
SAAB MARFIN MBAmarkets. Its popularity can be judged from the fact that in places like Pragati Maidan onecan find ready to...
SAAB MARFIN MBA                       (Source: www.answers.com) India accounts for 26% of the total production of world’s ...
SAAB MARFIN MBA                        Taj Mahal, Yellow LabelPremium leaf tea market and(Rs 220-240/ kg)        Green Lab...
SAAB MARFIN MBAThe Lipton brand, targeted at young consumers, has been appropriately expanded inthe Out-of-Home segment. L...
SAAB MARFIN MBA   Per capita Consumption of Coffee in India                (source:www.indiacoffee.org)Attitude of Indian ...
SAAB MARFIN MBA  The proportion of non-drinkers is the highest in the oldest age group of 55+ years.  Amongst coffee consu...
SAAB MARFIN MBA                certify vending equipment.     1960       Dollar bill changers are added to vending banks. ...
SAAB MARFIN MBA         PRODUCT AND MACHINE RANGELIPTON – THE TEA AND COFFEE RANGEAn international brand with a winning fo...
SAAB MARFIN MBATHE LIPTON VENDING MACHINE Lipton Vending Machines have been specially designed and are being introducedkee...
SAAB MARFIN MBA  1.   Option of 4 ingredients in nature of coffee, tea, soup etc.  2.   Post or pre paid option through sm...
SAAB MARFIN MBA   1.       Option of 5 ingredients in nature of coffee, dairy whitener, soup etc.   2.       Option of sim...
SAAB MARFIN MBAA Lipton Vending Machine is the most advanced of its kind. Features like Microprocessorcontrolled water tem...
SAAB MARFIN MBA   3) Breakdown and Repairs: - In case of breakdown, the Lipton crew shall address the      problem promptl...
SAAB MARFIN MBA                  COMPETITOR PRODUCTSThe three chief competitors of Hindustan Unilever Ltd in tea and coffe...
SAAB MARFIN MBAIndia. The coffee bean is sourced from Chikmagalur, Karnataka.                        (3) TATA TEA         ...
SAAB MARFIN MBANestlés business objective is to manufacture and market the Companys products insuch a way as to create val...
SAAB MARFIN MBA       Georgia Hot Lemon Tea          190.00   Per Kg ( Appx. 125 Cups)       Georgia Without Sugar Milk   ...
SAAB MARFIN MBA                   OBJECTIVE OF TRAININGAn attempt has been made to fulfill the following objectives:   (i)...
SAAB MARFIN MBA      1.   INFINITY TOWERS      2.   SECTOR 56      3.    SECTOR 321.   PRIMARY SOURCESPrimary data are gat...
SAAB MARFIN MBA                   ANALYSIS AND FINDINGThere are 7 channel of distribution of vending machine.1) INSTITUTIO...
SAAB MARFIN MBA                         PRICE COMPARATIVE CHARTA - Cost per cup of tea with tea bagB – Per cup cost of cof...
SAAB MARFIN MBAWhat is an approximate number of employees of yourorganization?                                            ...
SAAB MARFIN MBALate response to complaints                       2     5%No Complaints                                   3...
SAAB MARFIN MBA        Bad                GoodThere is cut-throat competition among the leading players in the packaged te...
SAAB MARFIN MBA      The distributors ability to offer a more complete package of services is not only      an inventory s...
SAAB MARFIN MBATotal for 1 month = Rs 309* 25 = Rs 7725Add: Rent         = Rs 1500Total             = Rs 9225Benefit of cu...
SAAB MARFIN MBA        Coffee Day Express           19        19.0             19.0              84.0        Georgia      ...
SAAB MARFIN MBA                                                                      50Analyzing the competitor factor and...
SAAB MARFIN MBA                             FACTOR ANALYSISFactor analysis is a very important test, which helps us in ide...
SAAB MARFIN MBABartletts test of sphericity indicates whether correlation matrix is an identity matrix,which would indicat...
SAAB MARFIN MBAthe factors (or components) in the factor solution. Small values indicate variables that donot fit well wit...
SAAB MARFIN MBAthere are a few factors that explain a lot of the variance. For principal componentsextraction, these value...
SAAB MARFIN MBAAvailability                        .611         .592              .312   -.025Weather Dependent           ...
SAAB MARFIN MBA                                 Communalities                                             Initial         ...
SAAB MARFIN MBA                         Communalities                                     Initial       ExtractionBrand Pr...
SAAB MARFIN MBAparticular brand selection. These are:   1. Brand Preference towards a particular Brand.   2. Taste of the ...
SAAB MARFIN MBA                          SWOT ANALYSISSTRENGTHS  Strong and well differentiated brands with leading share ...
SAAB MARFIN MBA    .Absence of ginger flavor in the premix range of tea and this is the most preferred    flavor in northe...
Analysing the competitor factor  in HUL
Analysing the competitor factor  in HUL
Analysing the competitor factor  in HUL
Analysing the competitor factor  in HUL
Analysing the competitor factor  in HUL
Analysing the competitor factor  in HUL
Analysing the competitor factor  in HUL
Analysing the competitor factor  in HUL
Analysing the competitor factor  in HUL
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Analysing the competitor factor in HUL

  1. 1. SAAB MARFIN MBA A PROJECT REPORT ON ANALYSING THE COMPETITOR FACTOR AND BOOSTING SALESAnalyzing the competitor factor and boosting up sales PROJECT MARKETING1
  2. 2. SAAB MARFIN MBA TABLE OF CONTENTS 1. STUDENT CERTIFICATE 2. ACKNOWLEDGEMENT 3. PREFACE 4. EXECUTIVE SUMMARY 5. INTRODUCTION TO INDUSTRY 6. COMPANY PROFILE 7. COMPETITOR PRODUCTS 8. OBJECTIVE OF SUMMER TRAINING 9. RESEARCH METHODOLOGY 10.SWOT ANALYSIS 11.BUSINESS OPPORTUNITY 12.BIBLIOGRAPHY 13.APPENDIX ( QUESTIONNAIRE)Analyzing the competitor factor and boosting up sales PROJECT MARKETING2
  3. 3. SAAB MARFIN MBA EXECUTIVE SUMMARYThis project gives a comprehensive idea about the SALES AND DISTRIBUTIONMANAGEMENT of one of the most important business sector in India, the FAST MOVINGCONSUMER DURABLES (FMCG) sector. The project was an endeavor to study the existingVending Business and the Lipton’s presence in it. It also tries to analyze Lipton’s pricing,promotion, the distribution channel and alternatives. It aims at installation of vending machine in a company and has been executed infollowing three stages: 1. Cold calling 2. Meeting respective administration/human resource heads & Negotiations 3. Installation of Lipton vending machine The task of installing a vending machine gets accomplice after several rounds ofnegotiations the respective company representative is made acquainted with the benefithis organization will get with Lipton. For this, a comprehensive cost-benefit has to bepresented to him to convert the prospect into key account of HUL.Once an order is placed, the Lipton crew along with the distributor installs the LiptonVending Machine. Proper and regular technical support is provided for machinemanagement. The Lipton team also trains for a smooth operation of the Lipton VendingMachine, which will help to maximize cuppage. The installation process is divided into 5stages: 1) Pre-delivery inspection at the establishment by the manufacturer’s technician. 2) Pre-installation Survey at the establishment by the installation crew. The crew shall check the location for Water Source, Electrical Wiring and Fittings, Earthing, Tank and machine placement- accordingly an estimation of cost shall be provided. 3) All electrical, plumbing and water requirement are addressed before actual installation. 4) After all the necessary checks are made, qualified technicians install the Lipton Vending Machine. 5) Training of the machine handling personnel to ensure smooth functioning and easy daily maintenance of the Lipton Vending Machine. Through the vending machines Hindustan Unilever Ltd. promotes the followingthree products:Tea : Analyzing the competitor factor and boosting up sales PROJECT MARKETING3
  4. 4. SAAB MARFIN MBAThe packet tea market continued to be extremely competitive with national, regional andlocal players vying for increased share and volumes Prices of garden tea remained stableduring the year, but have begun to firm up towards the later part of the year. Thestrategy of investing in building Brooke Bond as a mega brand to consolidate andstrengthen the Companys leadership in the packet tea market helped Brooke Bondmaintain its leadership during the year. In 2009, Taj Mahal and Lipton were successfullyre-launched. Aggressive Brand building support behind Lipton Natural Care hasestablished Natural Care as a significant variant within the portfolio. The focus on brandbuilding, and innovation has helped the Company to sustain its leadership position inthe overall category and exit the year with a growth momentum. Lipton continued togrow strongly in the Out-of-Home, Vending Channel through acquisition of some majorregional and national clients, and by strong activation at key consumer points. Thebusiness continued to record sustained profitability through its focused brand portfolioand highly streamlined supply chain and cost management.Coffee:The Coffee business had another excellent year, led by strong growth in Instant Coffee.The strategy to strengthen the brand equity of Bru through clutter breaking and highlyvisible communication, coupled with world class activation led to significant share gainfurther consolidating its leadership position within the branded coffee market. BruCappuccino continues to help Bru recruit new consumers into its franchise andconsolidate Brus channel leadership particularly in Modern Trade. The Re. 1 and Rs. 3low unit price packs continue to contribute significantly to the brands growth and drivecategory expansion. The coffee category, particularly Instant Coffee, continued to beextremely competitive with national players securing growth in volumes and marketshare. Ground and Roasted coffee; predominantly confined to South India, facedcompetition from local and regional players. There is a perceptible trend of increasingnumber, of consumers migrating to instant coffee from roasted and ground coffee due Analyzing the competitor factor and boosting up sales PROJECT MARKETING4
  5. 5. SAAB MARFIN MBAto its inherent convenience.Soups:Knorr Soups enjoy a large share in the nascent and small soup market and held thatposition during 2008. A new range of international quality soups were introduced duringthe Foods business delivered a robust performance during 2008. This was on the backof a good 2007, reflecting sustained momentum in the Kissan, Knorr and Annapurnabrands Kissan was relaunched with a new strategic positioning, improved packaging anda superior formulation, which significantly enhanced the quality of the product.Simultaneously, the Company focused on improving delivered freshness of processedfoods to consumers with an improved supply year. Simultaneously, a new campaign toencourage soup consumption at various moments in the day has been well received byconsumers and customers. This will help the business to build volumes through higherconsumption. Analyzing the competitor factor and boosting up sales PROJECT MARKETING5
  6. 6. SAAB MARFIN MBA INTRODUCTION TO INDUSTRYFast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods(CPG), are products that have a quick turnover and relatively low cost. Consumersgenerally put less thought into the purchase of FMCG than they do for other products.Though the absolute profit made on FMCG products is relatively small, they generallysell in large numbers and so the cumulative profit on such products can be large. FMCG Products and Categories Personal Care, Oral Care, Hair Care, Skin Care, Personal Wash (soaps); Cosmetics and toiletries, deodorants, perfumes, feminine hygiene, paper products; Household care fabric wash including laundry soaps and synthetic detergents; household cleaners, such as dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellents, metal polish and furniture polish. Food and health beverages, branded flour, branded sugarcane, bakery products such as bread, biscuits, etc., milk and dairy products, beverages such as tea, coffee, juices, bottled water etc, snack food, chocolates, etc. Frequently replaced electronic products, such as audio equipments, digital cameras, Laptops, CTVs; other electronic items such as Refrigerator, washing machines, etc. coming under the category of White Goods in FMCG;Analyzing the competitor factor and boosting up sales PROJECT MARKETING6
  7. 7. SAAB MARFIN MBASector OutlookFMCG is the fourth largest sector in the Indian Economy with a total market size of Rs.60,000 crores. FMCG sector generates 5% of total factory employment in the country andis creating employment for three million people, especially in small towns and ruralIndia.Analysis of FMCG SectorStrengths:1. Low operational costs2. Presence of established distribution networks in both urban and rural areas3. Presence of well-known brands in FMCG sectorWeaknesses:1. Lower scope of investing in technology and achieving economies of scale, especiallyin small sectors2. Low exports levels3. “Me-too” products, which illegally mimic the labels of the established brands. Theseproducts narrow the scope of FMCG products in rural and semi-urban market.Opportunities:1. Untapped rural market2. Rising income levels i.e. increase in purchasing power of consumers3. Large domestic market4. Export potential5. High consumer goods spendingThreats:1. Removal of import restrictions resulting in replacing of domestic brands2. Slowdown in rural demand3. Tax and regulatory structureFuture ScenarioThe Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sectorin the economy. A well-established distribution network, intense competition betweenthe organized and unorganized segments characterizes the sector. FMCG Sector isexpected to grow by over 60% by 2010. That will translate into an annual growth of 10% Analyzing the competitor factor and boosting up sales PROJECT MARKETING7
  8. 8. SAAB MARFIN MBAover a 5-year period. It has been estimated that FMCG sector will rise from around Rs56,500 crores in 2005 to Rs 92,100 crores in 2010. Hair care, household care, malegrooming, female hygiene, and the chocolates and confectionery categories areestimated to be the fastest growing segments.Growth ProspectWith the presence of 16.5% of the world population in the villages of India, the Indianrural FMCG market is something no one can overlook. Increased focus on farm sectorwill boost rural incomes, hence providing better growth prospects to the FMCGcompanies. Better infrastructure facilities will improve their supply chain. FMCG sector isalso likely to benefit from growing demand in the market.Because of the low per capita consumption for almost all the products in the country,FMCG companies have immense possibilities for growth. And if the companies are ableto change the mindset of the consumers, i.e. if they are able to take the consumers tobranded products and offer new generation products, they would be able to generatehigher growth in the near future. It is expected that the rural income will rise in 2007,boosting purchasing power in the countryside. However, the demand in urban areaswould be the key growth driver over the long term. Also, increase in the urbanpopulation, along with increase in income levels and the availability of new categories,would help the urban areas maintain their position in terms of consumption. At present,urban India accounts for 66% of total FMCG consumption, with rural India accounting forthe remaining 34%. However, rural India accounts for more than 40% consumption inmajor FMCG categories such as personal care, fabric care, and hot beverages. In urbanareas, home and personal care category, including skin care, household care andfeminine hygiene, will keep growing at relatively attractive rates. Within the foodssegment, it is estimated that processed foods, bakery, and dairy are long-term growthcategories in both rural and urban areas.THE TOP 10 COMPANIES IN FMCG SECTOR 1. Hindustan Unilever Ltd. 2. ITC (Indian Tobacco Company) 3. Nestle India 4. GCMMF ( AMUL) 5. Dabur India 6. Asian Paints (India) 7. Cadbury Industries 8. Britania Industries 9. Procter and Gamble Hygine and Healthcare Analyzing the competitor factor and boosting up sales PROJECT MARKETING8
  9. 9. SAAB MARFIN MBA 10.Marico IndustriesBudget Implications on FMCG SectorThe Budget gives more focus on the agricultural/farm sector that will boost the ruralincome thus providing better growth prospects to the FMCG companies. With 12.2% ofthe world population living in the villages of India, the Indian rural FMCG market issomething no one can overlook. Better infrastructure facilities will improve their supplychain. Also, with rising income and growing consumerism, FMCG sectors are likely tobenefit. Growth potential for all the FMCG companies is huge as the per capitaconsumption of almost all products in the country is amongst the lowest in the world.Further, if these companies can change consumers mindset and offer new generationproducts, they would be able to generate higher growth in the future COMPANY PROFILEHindustan Unilever Limited, erstwhile Hindustan Lever Limited (also called HLL),headquartered in Mumbai, is Indias largest consumer products company, formed in Analyzing the competitor factor and boosting up sales PROJECT MARKETING9
  10. 10. SAAB MARFIN MBA1933 as Lever Brothers India Limited. Its 41,000 employees are headed by Mr.HarishManwani, the non-executive chairman of the board. HUL is the market leader in Indianproducts such as tea, soaps, detergents, as its products have become daily householdname in India. The Anglo-Dutch company Unilever owns a majority stake in HindustanUnilever Limited.A number of prominent companies came into the HUL fold as result of Unilever’sinternational acquisitions. These included Brooke Bond (1984), Lipton (1972) and Pond’s(1986). In 1993, Tata Oil Mills Company (TOMCO) merged with HUL. Five years later, HULand yet another Tata company, Lakme Limited, formed a 50:50 joint venture, LakmeLever Limited. Subsequently in 1998, Lakme Limited sold its brands to HUL and divestedits 50 per cent stake in the joint venture to the FMCG giant.The leading business magazine, Forbes Global, has rated Hindustan Lever as the bestconsumer household products company. Far Eastern Economic Review has rated HUL asIndia’s most respected company. Asia money has rated HUL as one of India’s bestmanaged companies.BUSINESS OF THE COMPANYHUL’s business activities are divided into four broad areas:Home & Personal Care• Personal Wash• Fabric Wash• Home Care• Oral Care• Skin Care• Hair Care• Deodorants & Talcs• Color CosmeticsFoods• Tea• Coffee• Branded Staples• Culinary Products• Ice Creams• Modern Foods ranges 10 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  11. 11. SAAB MARFIN MBANew Ventures• Hindustan Lever Network• Ayush ayurvedic products & services• SangamExports• HPC• Beverages• Marine Products• Rice• CastorBrandsHUL s brands are household names across the country. They include Lifebuoy, Lux, SurfExcel, Rin, and Wheel, Fair & Lovely, and Ponds, Sunsilk, Clinic, Pepsodent, Close-up,Lakme, Brooke Bond, Kissan, Knorr-Annapurna and Kwality Wall’s.LOCATIONHUL products are manufactured in 80 factories. The operations involve over 2,000suppliers and associates. HUL s distribution network, comprising about 7,000redistribution stockiest, directly covers the entire urban population, and about 250million rural consumers.Past MilestonesIn the summer of 1888, visitors to the Kolkata harbor noticed crates full of Sunlight soapbars, embossed with the words "Made in England by Lever Brothers". With it began anera of marketing branded Fast Moving Consumer Goods (FMCG).Soon after followed Lifebuoy in 1895; other famous brands like Pears, Lux and Vim.Vanaspati were launched in 1918 and the famous Dalda brand came to the market in1937.In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati ManufacturingCompany, followed by Lever Brothers India Limited (1933) and United Traders Limited(1935). These three companies merged to form HUL in November 1956; HUL offered10% of its equity to the Indian public, being the first among the foreign subsidiaries to 11 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  12. 12. SAAB MARFIN MBAdo so. Unilever now holds 51.55% equity in the company. The rest of the shareholding isdistributed among about 380,000 individual shareholders and financial institutions.The erstwhile Brooke Bonds presence in India dates back to 1900. By 1903, thecompany had launched Red Label tea in the country. In 1912, Brooke Bond & Co. IndiaLimited was formed. Brooke Bond joined the Unilever fold in 1984 through aninternational acquisition. The erstwhile Liptons links with India were forged in 1898.Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited wasincorporated. Ponds (India) Limited had been present in India since 1947. It joined the Unilever foldthrough an international acquisition of Chesebrough Ponds USA in 1986.Since the veryearly years, HUL has vigorously responded to the stimulus of economic growth. Thegrowth process has been accompanied by judicious diversification, always in line withIndian opinions and aspirations.The liberalization of the Indian economy, started in 1991, clearly marked an inflexion inHULs and the Groups growth curve. Removal of the regulatory framework allowed thecompany to explore every single product and opportunity segment, without anyconstraints on production capacity.Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one ofthe most visible and talked about events of Indias corporate history, the erstwhile TataOil Mills Company (TOMCO) merged with HUL, effective from April 1, 1993. In 1995, HULand yet another Tata company, Lakme Limited, formed a 50:50 joint venture, LakmeLever Limited, to market Lakmes market-leading cosmetics and other appropriateproducts of both the companies. Subsequently in 1998, Lakme Limited sold its brands toHUL and divested its 50% stake in the joint venture to the company.HUL formed a 50:50 partnership joint venture with the US-based Kimberly ClarkCorporation in 1994. Kimberly-Clark Lever Ltd, which markets Huggies Diapers andKotex 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 Himalayankingdom. The NLL factory manufactures HULs products like Soaps, Detergents andPersonal Products both for the domestic market and exports to India. The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on theFoods and Beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari GeneralFoods, with significant interests in Instant Coffee. In 1993, it acquired the Kissanbusiness from the UB Group and the Dollops Ice-cream business from Cadbury India. 12 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  13. 13. SAAB MARFIN MBAAs a measure of backward integration, Tea Estates and Doom Dooma, two plantationcompanies of Unilever, were merged with Brooke Bond. Then in July 1993, Brooke BondIndia and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL), enablinggreater focus and ensuring synergy in the traditional Beverages business. 1994witnessed BBLIL launching the Walls range of Frozen Desserts. By the end of the year,the company entered into a strategic alliance with the Kwality Ice-cream Group familiesand in 1995 the Milk food 100% Ice-cream marketing and distribution rights too wereacquired.Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internalrestructuring culminated in the merger of Ponds (India) Limited (PIL) with HUL in 1998.The two companies had significant overlaps in Personal Products, Specialty Chemicalsand Exports businesses, besides a common distribution system since 1993 for PersonalProducts. The two also had a common management pool and a technology base. Theamalgamation was done to ensure for the Group, benefits from scale economies both indomestic and export markets and enable it to fund investments required foraggressively building new categories.In January 2000, in a historic step, the government decided to award 74 per cent equityin Modern Foods to HUL, thereby beginning the divestment of government equity inpublic sector undertakings (PSU) to private sector partners. HULs entry into Bread is astrategic extension of the companys wheat business. In 2002, HUL acquired thegovernments remaining stake in Modern Foods.In 2003, HUL acquired the Cooked Shrimp and Pasteurized Crabmeat business of theAmalgam Group of Companies, a leader in value added Marine Products exports.CHRONOLOGYYEAR MILESTONES1888 Sunlight soap introduced in India.1895 Lifebuoy soap launched; Lever Brothers appoints agents in Mumbai, Chennai, Kolkata, and Karachi.1902 Pears soap introduced in India. 13 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  14. 14. SAAB MARFIN MBA1903 Brooke Bond Red Label tea launched.1905 Lux flakes introduced.1913 Vim scouring powder introduced.1914 Vinolia soap launched in India.1918 Vanaspati introduced by Dutch margarine manufacturers like Van den Berghs, Jurgens, Verschure Creameries, and Hartogs.1922 Rinso soap powder introduced.1924 Gibbs dental preparations launched.1925 Lever Brothers gets full control of North West Soap Company.1926 Hartogs registers Dalda Trademark.1930 Unilever is formed on January 1 through merger of Lever Brothers and Margarine Unie.1931 Hindustan Vanaspati Manufacturing Company registered on November 27; Sewri factory site bought.1932 Vanaspati manufacture starts at Sewri.1933 Application made for setting up soap factory next to the Vanaspati factory at Sewri; Lever Brothers India Limited incorporated on October 17.1934 Soap manufacture begins at Sewri factory in October; North West Soap Companys Garden Reach Factory, Kolkata rented and expanded to produce Lever brands.1935 United Traders incorporated on May 11 to market Personal Products.1937 Mr. Prakash Tandon, one of the first Indian covenanted managers, joins HVM.1939 Garden Reach Factory purchased outright; concentration on building up Dalda Vanaspati as a brand.1941 Agencies in Mumbai, Chennai, Kolkata and Karachi taken over; company acquires own sales force.1942 Unilever takes firm decision to "train Indians to take over junior and senior management positions instead of Europeans". 14Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  15. 15. SAAB MARFIN MBA1943 Personal Products manufacture begins in India at Garden Reach Factory.1944 Reorganization of the three companies with common management but separate marketing operations.1947 Ponds Cold Cream launched.1951 Mr. Prakash Tandon becomes first Indian Director. Shamnagar, Tiruchy, and Ghaziabad Vanaspati factories bought.1955 65% of managers are Indians.1956 Three companies merge to form Hindustan Lever Limited, with 10% Indian equity participation.1957 Unilever Special Committee approves research activity by Hindustan Lever.1958 Research Unit starts functioning at Mumbai Factory.1959 Surf launched.1961 Mr. Prakash Tandon takes over as the first Indian Chairman; 191 of the 205 managers are Indians.1962 Formal Exports Department starts.1963 Head Office building at Back bay Reclamation, Mumbai, opened.1964 Etah dairy set up, Anik ghee launched; Animal feeds plant at Ghaziabad; Sunsilk shampoo launched.1965 Signal toothpaste launched; Indian shareholding increases to 14%.1966 Levers baby food, more new foods introduced; Nickel catalyst production begins; Indian shareholding increases to 15%. Statutory price control on Vanaspati; Taj Mahal tea launched.1967 Hindustan Lever Research Centre, opens in Mumbai.1968 Mr. V. G. Rajadhyaksha takes over as Chairman from Mr. Prakash Tandon; Fine Chemicals Unit commissioned at Andheri; informal price control on soap begins.1969 Rin bar launched; Fine Chemicals Unit starts production; Bru coffee launched1971 Mr. V. G. Rajadhyaksha presents plan for diversification into chemicals to Unilever Special Committee - plan approved; Clinic shampoo launched. 15Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  16. 16. SAAB MARFIN MBA1973 Mr. T. Thomas takes over as Chairman from Mr. V. G. Rajadhyaksha.1974 Pilot plant for industrial chemicals at Taloja; informal price control on soaps withdrawn; Liril marketed.1975 Ten-year modernization plan for soaps and detergent plants; Jammu project work begins; statutory price control on Vanaspati and baby foods withdrawn; Close-up toothpaste launched.1976 Construction work of Haldia chemicals complex begins; Taloja chemicals unit begins functioning.1977 Jammu synthetic Detergents plant inaugurated; Indian shareholding increases to 18.57%.1978 Indian shareholding increases to 34%; Fair & Lovely skin cream launched.1979 Sodium Tripolyphospate plant at Haldia commissioned.1980 Dr. A. S. Ganguly takes over as Chairman from Mr. T. Thomas; Unilever shareholding in the company comes down to 51%.1982 Government allows 51% Unilever shareholding.1984 Foods, Animal Feeds businesses transferred to Lipton.1986 Agri-products unit at Hyderabad starts functioning - first range of hybrid seeds comes out; Khamgaon Soaps unit and Yavatmal Personal Products unit start production.1988 Launch of Lipton Taaza tea.1990 Mr. S. M. Datta takes over as Chairman from Dr. A. S. Ganguly.1991 Surf Ultra detergent launched.1992 HUL recognised by Government of India as Star Trading House in Exports.1993 HULs largest competitor, Tata Oil Mills Company (TOMCO), merges with the company with effect from April 1, 1993, the biggest such in Indian industry till that time. Merger ultimately accomplished in December 1994; Launch of Vim bar; Kissan acquired from the UB Group.1994 HUL forms Nepal Lever Limited, HUL and US-based Kimberley-Clark Corporation form 50:50 joint venture - Kimberley-Clark Lever Ltd. - to market Huggies diapers and Kotex feminine care products. Factory set up at Pune in 1995; HLL acquires Kwality and Milkfood 100% brand names and distribution assets. HLL 16Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  17. 17. SAAB MARFIN MBA introduces Walls.1995 HUL and Indian cosmetics major, Lakme Ltd., form 50:50 joint venture - Lakme Lever Ltd.; HUL enters branded staples business with salt; HLL recognized as Super Star Trading House.1996 Mr. K. B. Dadiseth takes over as Chairman from Mr. S. M. Datta; Merger of Group company, Brooke Bond Lipton India Limited, with HLL, with effect from January 1; HUL introduces branded aatta; Surf Excel launched.1997 Unilever sets up International Research Laboratory in Bangalore; new Regional Innovation Centers also come up.1998 Group company, Ponds India Ltd., merges with HUL with effect from January 1, 1998. HUL acquires Lakme brand, factories and Lakme Ltd.s 50% equity in Lakme Lever Ltd.2000 Mr. M. S. Banga takes over as Chairman from Mr. K. B. Dadiseth, who joins the Unilever Board; HUL acquires 74% stake in Modern Food Industries Ltd., the first public sector company to be disinvested by the Government of India.2002 HUL enters Ayurvedic health & beauty centre category with the Ayush range and Ayush Therapy Centers.2003 Launch of Hindustan Lever Network; acquisition of the Amalgam Group2005 Launch of "Pureit" water purifiersManagement StructureHindustan Unilever Limited is Indias largest Fast Moving Consumer Goods (FMCG)Company. It is present in Home & Personal Care and Foods & Beverages categories. HULand Group companies have about 16,000 employees, including 1200 managers.The fundamental principle determining the organization structure is to infuse speed andflexibility in decision-making and implementation, with empowered managers acrossthe companys nationwide operations. For this, HUL is organized into two self-sufficientdivisions - Home & Personal Care & Foods - supported by certain central functions andresources to leverage economies of scale wherever relevant. Board Divisions Central functions Businesses 17 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  18. 18. SAAB MARFIN MBABoard of Directors/ Key PersonnelMr. Harish Manwani ChairmanMr D. Sundaram Vice chairmanMr Nitin Paranjpe CEO & MDMr Hemant Bakshi Executive Director sales & customer developmentMr C.K Prahalad Independent DirectorMr D.S Parekh Independent DirectorMr Gopal Vittal Executive DirectorMr Sridhar Ramamurthy Executive Director & CFOSales and income break-up from different business activities ofHindustan Unilever Ltd. :(Values in crores - (Source: www.hul.com))PBIT Break-up: 18 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  19. 19. SAAB MARFIN MBA (Values in crores) (Source: www.hul.com)HINDUSTAN UNILEVER LOGO Logo of Hindustan Unilever is contaning the legacy of their parent company Unilever.Logo of Hindustan Unilever has also been changed with company name. This logocoincides with the announcement of new corporate identity. Name HUL was approved byshareholder at the year annual meeting on May 18 & new identity was officiallyannounced on 25 June following government approval.New identity provides optimum balance between maintaining the heritage of thecompany & synergies of global alignment with the corporate name of Unilever. Mostimportantly it retains “Hindustan” as the first word in its name to reflect the company’scontinued commitment to local economy, consumers, partners, & employers . New logo symbolizes the company mission of “Adding Vitality to life” & play a verystrongly in our vision of “Earning the love & respect of India by making a real differenceto every Indian”. It comprises 25 different icons representing organization, its brands &idea of vitality.SUN : Our primary natural resource. All life begin with this 19 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  20. 20. SAAB MARFIN MBA Ultimate symbol of vitality.DNA : Double helix, the genetic blueprint of life & a symbol of bioscience. It is the key to a healthy life. While the sun is the biggest source of life,dna is the smallestSPOON : A symbol of nutrition , tasting & cooking.BOWL :A bowl of delicious smelling food. it can also represent a ready meal , hot drink or soupSPICE & FLAVOUR : Represent chillie or fresh ingredient.FISH : Representing food, sea or fresh water.SPARKLE : Clean healthy & sparkling with energy.SAUCE OR SPREADS : Represents mixing or string. It suggest blending in flavor & adding tasteBEE : Representing creation , pollination, hard work & bio diversity’s bee symbolizes both environmental challenges and opportunities.HAND & FLOWER : Hand symbolizes sensitivity care & need .it represent skin & touch. & flowers , fragrance .when seen with hand , it represents moisture or cream.ICECREAM : A treat, pleasure & enjoyment.LIPS : represent beauty, looking good & taste.HAIR : A symbol of beauty & good looking. Placed next to the flower it evokes cleanliness & fragrance ; placed near the hand it suggest softness.PALM TREE : A nurtured resources. It produces palm oil as well as many fruits – coconuts, bananas & dates and symbolizes paradise.BIRDS : A symbol of freedom. It suggest a relief from daily chores, & getting more out of life.RECYCLE : A part of our commitment to sustainability.PARTICLES : A references to science ,bubbles & fizz. 20 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  21. 21. SAAB MARFIN MBATEA : A plant or extract of a plant ,such as tea. Also a symbol of growing & farming.FROZEN : The plant is a symbol of freshness, the snowflakes represent freezing. A transformational symbol.LIQUID : A reference to clean water & purity.WAVE : Symbolizes packaging – a pot of cream associated with personal care.CLOTHES : Represents fresh laundry & looking goods.HEARTS : A symbol of love , care & health. 21 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  22. 22. SAAB MARFIN MBA OUT – OF – HOME BUSINESSHave you caught the tail of a new trend in town? Have you as yet spotted the best ofbrands running into the terrain of out-of-home consumption? Running for cover fromthe meltdown in the in-home segment of consumption!Out-of-home branding is the new buzzword sweeping Indian shores. Brands thatstubbornly remain indoors through their positioning and segmentation strategies are infor a jolt!Consider the facts. The Indian population is a young population. Life expectation islonger than before. Income standards are up. Except for a year of aberration, the Indianmonsoon has largely behaved! Good monsoons mean a good crop. Large parts of therural economy are a non tax-paying economy. Good rains spell good crops and goodcrops in turn spell a good amount of disposable income!The metro is a happening place. We have five big ones and a whole host of 29 onemillion plus population towns that are buzzing with activity. The man works. The womanworks as well.The average Indian is spending a lot more time out of home than before. Eight hours atwork, two hours on travel and two hours of outdoor entertainment and eating out,gobbles up half his day. And thats a lot of time spent out of home! The brand in his lifehas to appeal to his senses more out-of-home than when in home.Tea and coffee have always been very popular beverages among people. It is beyond theclass boundaries. People of all age groups relish them. With globalization and expansionof retail business, markets etc the ready to serve food items and beverages have gainedlot of demand. One can spot the coffee tea vending machines almost everywhere- be itHospitals, Airports, Commercial complexes, offices, big markets and even local colony 22 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  23. 23. SAAB MARFIN MBAmarkets. Its popularity can be judged from the fact that in places like Pragati Maidan onecan find ready to serve tea, coffee almost everywhere. It has become a style statement tobe drinking these instead of the handmade tea/coffee.They sell like hot cakes especially in markets and shopping places. Nowadays people areconscious about hygiene. Many people go in for these ready to serve tea/coffee and ofcourse their good taste is a major drawing factor.Lipton Yellow Label has painted many a town and cities yellow! Many a restaurant, manya bus stop, and many a signage potential is today all yellow Lipton seems to run out ofhome and focus on consumption that is outdoor while Sister Brooke Bond seems tofocus on what is happening inside the home!“Happy people are productive people”. This is the basic rule of any company. Big orsmall, every employer tries at keeping his employees, customers and clients happy.Imagine if an organization has a wide range of refreshments to grab, at fingertips; ifthey could enjoy getting a whole load of refreshments as and when they wished for it.Lever foods service gives them this freedom in form of vending machines. Available inhot and cold formats, they are the complete vending solutions for an organization. So,everyone is happy at the push of a button.Geographically, tea is widely consumed in the North, East and West of India, and ispopular with a wide variety of social classes and consumer age groups. Black standardtea constitutes nearly 80% of value sales. In the south, coffee is bigger as a proportion oftotal hot drinks than in the rest of the country though green tea has seen its popularityrise.It accounts for 90% of the total beverage consumption in the country. In 2007, teaco9nstituted 70% of retail volume sales, compared to coffee and other hot drinks with4.4% and 26% shares respectively.Retail sales volume in year 2009 23 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  24. 24. SAAB MARFIN MBA (Source: www.answers.com) India accounts for 26% of the total production of world’s tea and 4.6% of that of world’scoffee.World Coffee Production in year 2009 - (source:www.financialexpress.com)World Tea Production in year 2009 – (source : www.answers.com)Unilever (Brooke Bond and Lipton) is the clear leader, holding over 30% of the marketshare, while Tata Tea (Tata) trails it with almost 20%. The remainder of the market is farmore fragmented and shared between numerous small players. Loose tea comprises a45-per cent market and is a formidable challenge to the Indian packaged tea segment,because of its lower prices. The brand war HUL Tata Tea 24 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  25. 25. SAAB MARFIN MBA Taj Mahal, Yellow LabelPremium leaf tea market and(Rs 220-240/ kg) Green Label Tetley TemptationsPremium dust category Three Roses and Top(Rs 180-200 per kg) Star Chakra GoldMedium leaf sector(Rs 140-180 per kg Red Label and Taaza Tata Tea PremiumMedium dust category Tata Tea Premium, Kanan Devan and(Rs 130-180 per kg) Taaza, Super GeminiPopular or economycategory(Rs 120-140 per kg) A-1 and Tiger Agni SholayEconomy dust teas(Rs 120-130 per kg) A-1 and Ruby Agni and LeoPacket Tea Segment in IndiaConsumers in different parts of the country have heterogeneous taste. Dust tea is verypopular in the south. In the western states, good quality loose tea is preferred in Gujarat,whereas in Maharashtra, consumers provide a large market to packet as well asunbranded tea.. The eastern states of West Bengal and Orissa consume CTC broken.Among the northern states, CTC fanning is liked in Rajasthan and CTC broken in othersstates of the North. The Central India is predominantly a dust market CTC = Cut, Tear, Curl. CTC production is a shortened, machine automated productionprocess. Importance is put on a uniform leaf and a quickly colored infusion.Hindustan Unilever Limited’s (HUL) packet tea business has strengthened its position inthe market in 2004, led by its two mega brands, Brooke Bond and Lipton.Simultaneously HUL continues to post strong growth in coffee.HUL has further consolidated on the successful relaunched of Brooke Bond in the secondhalf of 2003. The three Brooke Bond sub-brands, Taj Mahal, Red Label and Taaza, withtheir distinct positioning, have expanded their presence to cover new geographies. Thishas helped strengthen marketplace position.Appropriately priced packs have been introduced to make the Brooke Bond offeringsmore accessible. Coupled with high-impact market activation, these packs haveincreased Brooke Bond’s market share and sustained its strong growth. 25 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  26. 26. SAAB MARFIN MBAThe Lipton brand, targeted at young consumers, has been appropriately expanded inthe Out-of-Home segment. Lipton Ice Tea has been successfully test-marketed inBangalore and Chennai. The consumer test proven mix will now be taken national,leveraging the alliance between HUL and Pepsi.HUL has already identified Out-of-Home as a growth driver. The channel, which hasposted strong growth in the last two years, will be used for the entire HUL Beverages andFoods categories.In the Instant Coffee segment, HUL continues to post strong growth. Bru Instant Coffeehas been re-launched, with a new identity, communication and modern pack formats.Superior activation, penetration building activities and investment in strategic channels,like Out-of-Home, is contributing to the growth. Bru, as a franchise, has beenstrengthened with the filter coffee brand, Deluxe Green Label, re-launched as Bru Roast& Ground. Consumption in leading producing countries- (source: ICO)Coffee consumption in India, by and large is an urban phenomenon with an urban andrural divide of 71% and 29% respectively. Among the type of coffee consumed it wasalmost equally divided between instant (soluble) and filter (Roast and ground) coffeesthough the proportion of instant coffee is very high in non-south. 26 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  27. 27. SAAB MARFIN MBA Per capita Consumption of Coffee in India (source:www.indiacoffee.org)Attitude of Indian Coffee Consumers(www.indiacoffee.org) Penetration (Beverage consumed in the past 12 months) of coffee at 59% is low compared to that of tea. Penetration of filter coffee is highest in South India In the Rural areas (South India) instant coffee has a higher level of penetration than filter coffee. Consumption of coffee is relatively lower with 19% consuming it when compared to 85% for tea. Consumption was the highest in the South at 31 % while it ranges between just 35% in the weak coffee zones of North, East and South. Yesterdays consumption is the highest among the 15-24 and 35-44 age group. When compared to consumption of other beverages yesterday, coffee comes in third, after tea and plain milk. Among other beverages, buttermilk, natural beverages and Carbonated Soft Drink are more popular with more than 10% of respondents consuming these beverages yesterday. Coffee is consumed as a first cup only by 23% of coffee drinkers even in the traditional market of the South. Per capita consumption of coffee (among all respondents - both drinkers and non drinkers) is 0.33 cups against 1.77 cups for tea. However, coffee consumption among drinkers at 1.76 cups compares favorably with that of tea at 2.1 cups.. 27 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  28. 28. SAAB MARFIN MBA The proportion of non-drinkers is the highest in the oldest age group of 55+ years. Amongst coffee consumers in the rural areas, a majority (43% of all adults) is light drinkers, consuming 1-2 cups everyday. About a fifth of rural consumers consume coffee occasionally. HISTORY OF VENDING MACHINES Automated retailing through vending machines is a concept that has been exploited by entrepreneurs around the world for over four decades. India, however, is relatively virgin market though with huge potential. Vending may be considered as a new concept in India, but it has been in existence for thousands of years. Vending Details Timeline 215 B.C. Device to dispense holy water used in temples of Egypt, described by Mathematician Hero, who lived in Alexandria. 1076 A.D The Chinese produce a coin operated pencil vendor. 1700s Coin operated boxes appear in English taverns. 1886 U.S grants several patents for coin operated dispensers. 1888 Thomas Adams company installs Tutti Frutti gum machines on New York elevated train platforms. 1902 Horn and Hardart Baking Company opens automatic restaurant in Philadelphia. 1905 U.S post office begins to use stamp vendors. 1920s First commercial cigarette vending machine enters the market. 1930s Bottled soft drink machines, cooled with ice, appear on market. 1936 National Automatic Merchandising Association is founded. 1946 Invention of first coffee vendors leads to use of vending machines for coffee breaks. 1950 First refrigerated sandwich vendors expand lunch venue. 1957 U.S Public Health Service approves Model Vending Sanitation Code, and NAMA establishes industry’s first evaluation programmed 28Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  29. 29. SAAB MARFIN MBA certify vending equipment. 1960 Dollar bill changers are added to vending banks. 1980 Electronic components applied to vending machines. 1985 Credit card/debit card services for vending machines introduced. 1986 100th anniversary of vending machines in U.S. 1991 Flavored coffee, espresso and cappuccino introduced in machines. 1993 First remote wireless transmission of data from machines to warehouse. 1999 New dollar coin introduced by U.S mintA GL I MP S E OVER THE A CHI EVEMENT OF HUL VENDING DI VI S ION More than 25000 installations across 100 towns serving over a billion cups of beverages per annum and growing. Customized solutions for a wide array of needs f rom mall to off ices to factories and hotels. Support for 24/7 operations, including some of the biggest bpo’ s, companies and banks. Solutions f or all off ices ranging f rom 10 to 10000 people and at remote locations. 29 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  30. 30. SAAB MARFIN MBA PRODUCT AND MACHINE RANGELIPTON – THE TEA AND COFFEE RANGEAn international brand with a winning formulation, with the assurance of total hygieneand top class quality, Lipton Tea and Coffee comes in a range of mouth-wateringflavoring:-TEA: -Plain Tea, Cardamom Tea, Hot Lemon, Tea Bag Tea.COFFEE: -Bru Plain Coffee, Choco Almond, Bru Diet Coffee, Cappuccino Special Coffee.COLD RANGE: -Bru Cold Coffee (Frappucino), Lipton Ice Tea (Lemon, Peach).SOUP RANGE: - Knorr Tomato Soup 30 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  31. 31. SAAB MARFIN MBATHE LIPTON VENDING MACHINE Lipton Vending Machines have been specially designed and are being introducedkeeping our market realities and interests in mind. Following are the variants of Vendingmachines:Mr. Dependable – The New 4 Lane U Cup Machine 1. Option of 4 ingredients in nature of coffee, tea, soup etc. 2. Staggered dispensing option for tea bag. 3. Temperature interlocking. 4. Auto cleaning 5. Water source – Online/Bubble topSmart card Machine 31 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  32. 32. SAAB MARFIN MBA 1. Option of 4 ingredients in nature of coffee, tea, soup etc. 2. Post or pre paid option through smart card 3. Option for consumption data down loading to PC for MIS processing. 4. Staggered dispensing option for tea bag. 5. Auto Cleaning 6. Temperature Interlocking 7. Water source – Built in tank/ bubble topThirst Quencher – Ice Tea Machine 1. Option of 2 ingredients in nature of ice tea and cold coffee. 2. Dispensing Rate: - 3 cups/min (200ml each) - Approx 20 cups non stop 3. Auto cleaning 4. Water source – Online/ Bubble topHigh Speed Hot Machine 32 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  33. 33. SAAB MARFIN MBA 1. Option of 5 ingredients in nature of coffee, dairy whitener, soup etc. 2. Option of simultaneously dispensing 3 drinks. 3. Option of cappuccino. 4. Staggered dispensing option for dairy whitener. 5. Dispensing rate: - 15 cups/min of 100 ml each - Approx 250 cups non-stop 6. Auto cleaning. 7. Temperature inter-lockingA Café bar at Work – Fresh bean Coffee Machine 1. Option of 4 ingredients in nature of coffee bean, dairy whitener, soup etc. 2. Providing 10 drink options including 6 options of fresh bean coffee. 3. Dispensing rate : - 2 cups/min of 100ml each 4. Temperature interlocking 5. Water source – on-line/ Bubble top. 33 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  34. 34. SAAB MARFIN MBAA Lipton Vending Machine is the most advanced of its kind. Features like Microprocessorcontrolled water temperature, inbuilt Digital Counter, Hardware Lock and Auto-Flushsystem helps to maintain a low failure rate. It is also hygienic and insect proof, whichalso contributes to its durability. Flexibility in cup offerings – full and half; is anotherattribute that makes the Lipton Vending Machine stand out as the most convenientvending machine. The technologically superior equipment has been put through intensestress tests so that it can withstand the demanding local market.WATER MANAGEMENTThe HUL Company has been known for remarkable consistency in quality for over ahundred years. To ensure that quality beverage is served consistently, cup after cup, theLipton Vending Machine is fitted with any of four different types of filters :- SINGLE,DOUBLE, TRIPLE AND RESIN filter. This makes sure that the best and safest quality ofwater goes into the vended Lipton cup. The filter thus enhances the quality of water,taste of the beverage and also increases equipment life.SERVICE SUPPORTFor the Lipton vending machine, there shall be an authorized service center with a vastnetwork to cater to the needs of the customer. Three basic steps shall be undertaken toensure long life and smooth functioning of your Lipton Vending Machine. 1) Regular Daily Maintenance: - Proper training shall be imparted on the daily usage, cleaning and maintenance of the Lipton Vending Machine, at the time of installation, to your personnel. 2) Monthly Preventive Maintenance: - The Lipton crew shall make regular monthly visits for check-ups, maintenance and smooth functioning of Lipton Vending Machine. 34 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  35. 35. SAAB MARFIN MBA 3) Breakdown and Repairs: - In case of breakdown, the Lipton crew shall address the problem promptly and effectively. Also, a regular dispatch plan for the pre-mixes shall be regularly communicated to you, for you to maintain an appropriate stock inventory. An exclusive customer care phone no. is provided for any queries and assistance on the Lipton Vending Machine. DISTRIBUTION CHANNEL FACTORY DEPOT DEPOTR.S R.S R.S R.SCONSUMER CONSUMER CONSUMER CONSUMERYou don’t know how much people are buying pears, lux & fair & lovely but in OOHcompany directly touches the customer & they know how much consumption is there. Inthe distribution channel of vending machine retailer doesn’t play part after theRedistribution Stockiest (R.S.) consumer can avail the product. 35 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  36. 36. SAAB MARFIN MBA COMPETITOR PRODUCTSThe three chief competitors of Hindustan Unilever Ltd in tea and coffee vending businessare Nescafe, Tata, Georgia and Café Coffee Day which have their presence in the marketwith following products:1) Café Coffee Day Café Coffee Day is a chain of coffee shops in India. A division of Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL), it is commonly known as Coffee Day. It opened its first cafe in 1996 on Brigade Road in Bangalore, and today has the largest cafe retail chain in India - with 436 cafes in 69 cities. Headquartered in Bangalore, a majority of its cafes are also located in Bangalore. The cafe chain has had much successriding, and to some extent creating, the cafe culture wave that swept acrossmetropolitanCoffee Day sources coffee from 10000 acres of coffee estates, the 2nd largest in Asia,that is owned by a sister concern and from 11,000 small growers. It is one of India’sleading coffee exporters, with clients across the USA, Middle East Europe and Japan.(2) FRESH & HONESTTill recently a company selling beverages, Fresh and Honest, a part of the Sterling group,has now added noodles and corn flakes to its product basket by signing up deals withIndo Nissan Foods Limited (makers of Top Ramen noodles) and Kelloggs. Fresh and Honest imports soup powder and Swiss chocolate powder from two Swiss companies Haco and Domaco respectively. The coffee bean, dip tea packs, milk and sugar are sourced within India. The coffee bean is sourced from Chikmagalur, Karnataka. Fresh and Honest imports soup powder and Swiss chocolate powder from two Swiss companies Haco and Domaco respectively. The coffee bean, dip tea packs, milk and sugar are sourced within 36 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  37. 37. SAAB MARFIN MBAIndia. The coffee bean is sourced from Chikmagalur, Karnataka. (3) TATA TEA Another competitor of HUL is Tata with its brand Tetley. Tata Coffee Limited, one of the world’s largest integrated coffee company. The company earlier known as Consolidated Coffee was renamed as Tata Coffee with the merger of Coffee Land and Asian Coffee.Tetley has been a member of the Tata Group since March 2000 and today contributesaround two-thirds of the total turnover of Tata Tea. The company is a joint venturebetween Tata Tea, which produces 40 million kg of tea per annum at its gardens, andthe UK-based Tetley Group, a tea blender and tea bag producer of international repute.The Tata-Tetley combine offers a wide range of international quality products, such asround tea bags, string and tag tea bags, and packet tea.VENDING MACHINE & THEIR FEATURESSINGLE OPTION—simple-sleek, detachable drip tray, hot water facility.DOUBLE OPTION-HOT—detachable drip tray, hot water facility.TRIPLE OPTION-HOT—built in stabilizer, auto cleaning, digital counter, temperatureinterlocking. FOUR OPTION-HOT— auto cleaning, digital counter, temperature interlocking, autoflushing. MULTIPLE OPTION-HOT— Provision for mineral water bubble top, auto flushing,temperature interlocking, digital counter.(4) NESTLE The main competitor of HUL vending products in the market is Nestle. And listed below are some points about Nestle. All about Nestlé Nestlé was founded in 1866 by Henri Nestlé, a pharmacist, who developed a food for babies who were unable to breastfeed. The Nestlé Company has aimed to build a business based on sound human values and principles. Nestlé is committed to the following Business Principles in all countries, taking into account local legislation, cultural andreligious practices: 37 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  38. 38. SAAB MARFIN MBANestlés business objective is to manufacture and market the Companys products insuch a way as to create value that can be sustained over the long term for shareholders,employees, consumers, and business partners.Nestlé does not favor short-term profit at the expense of successful long-term businessdevelopment.Nestlé recognizes that its consumers have a sincere and legitimate interest in thebehavior, beliefs and actions of the Company behind brands in which they place theirtrust and that without its consumers the Company would not exist.Nestlé believes that, as a general rule, legislation is the most effective safeguard ofresponsible conduct, although in certain areas, additional guidance to staff in the formof voluntary business principles is beneficial in order to ensure that the higheststandards are met throughout the organization.Nestlé is conscious of the fact that the success of a corporation is a reflection of theprofessionalism, conduct and the responsible attitude of its management and employees.Therefore recruitment of the right people and ongoing training and development arecrucial.Nestlé continues to maintain its commitment to follow and respect all applicable locallaws in each of its markets.TEA Nestea Tea Bags, Instant Tea Premix ( Cardamom Flavor), Instant Tea Premix (Plain Tea), Lemon Tea, Dairy Whitener, Everyday Sugar FreeCOFFEE Nescafé Premix, Nescafe Low Sugar, Cappuccino, Mochacino.MAGGI TOMATO SOUPCOMPETITOR’S PRICESGEORGIA Product Name Rate Specification Georgia Milk 110.00 Per Kg( Appx. 100 cups) Georgia Cardamom Tea/ 220.00 Per Kg (Appx.95 Cups) Ginger Tea/ Masala Tea Georgia Coffee 200.00 Per Kg (Appx. 95 Cups) 38 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  39. 39. SAAB MARFIN MBA Georgia Hot Lemon Tea 190.00 Per Kg ( Appx. 125 Cups) Georgia Without Sugar Milk 310.00 Per Kg (Appx 200 cups) Sun fill Soup 330.00 Per Kg ( Appx. 167 Cups) NESTLE Product Name Rate Specification Nescafe Coffee Premix 185.00 Per kg (Approx. 80 cups) Nescafe Low Sugar Premix 200.00 Per Kg (Approx. 80 cups) Nescafe Classic coffee 535.00 Per 500 Gms, Everyday Whitener Premix 112.00 Per kg (Approx. 100 cups) Everyday Dairy Whitener Poly 180.00 Per kg Badam Milk Premix 220.00 Per Kg Per 500 gm (Approx. 15 Nestea Lemon / Peach Premix 98.00 cups) Nestea Cardamom Tea Premix 190.00 Per kg (Approx. 80 cups) Maggie Hot Cup Soup Tomato 375.00 Per kg (Approx. 170 cups) Tea Bags 0.70 Per Bag Creamer 3Gm 101.83 Per Case( 24pkt) Paper Beaker 150 Ml 0.45 Per Beaker Plastic Beaker 150 Ml 0.50 Per Beaker Sugar Powder 43.50 Per Kg Sugar Cube [Economy Pack] 42.00 Per kg 39Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  40. 40. SAAB MARFIN MBA OBJECTIVE OF TRAININGAn attempt has been made to fulfill the following objectives: (i) Finding new opportunities for the vending services of the company by making organizations acquainted with concept. (ii) Handling marketing and sales operations for achieving increased growth & profitability. (iii) Generating leads and converts them into sales for product. (iv) Customer grievances and distributor handling.I subdivide these objectives as: (i) Understanding the nerve of competition in the market with major players namely Café Coffee Day, Nestle, Georgia etc. (ii) Understanding the pulse of the market & accordingly plan the course of action. (iii) Interacting with clients for understanding their need and the information required by them. (iv) Finding the major factors that led the customers to decide on which tea/coffee they choose. RESEARCH METHODOLOGY RESEARCH DESIGNA Sample Design is definite plan for obtaining a sample from given population. it referto technique or procedure the research would adopt in selecting item for the sample. SAMPLE PLAN FOR SURVEYSAMPLE UNIT - Institutional & Factories.SAMPLING AREA – GurgaonSAMPLE SIZE - 50 companies and 100 customersDATA COLLECTION – Through Questionnaire Further I have divided the whole gurgaon in five par 40 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  41. 41. SAAB MARFIN MBA 1. INFINITY TOWERS 2. SECTOR 56 3. SECTOR 321. PRIMARY SOURCESPrimary data are gathered for a specific purpose or for a specific research project. Inthis project, the data I have collected is regarding the use of vending machines byhaving interactions with the HR person, ADMIN. HEAD, and the purchase managerthat which machine they are using whether it is nestle, Georgia, Lipton and with thehelp of which market share of each company is calculated.2. SECONDARY SOURCESIn this purpose secondary Data is useful to collecting the various information aboutcompanies like telephone no. addresses etc. so I have consulted telephone directory &Informative websites.NOTES: Primary data was collected through the survey done by the questionnaires. Questionnaires are the most reliable method of primary data collection. More than 150 companies were surveyed in the Gurgaon City on a random choice basis. Customer interaction was done at canopy, door step and in the market and other public places. I enumerate the data and they were converted into frequency distribution. DATA INTERPRETATION: through these frequency distributions graphs & charts were made for further analysis. These were used to draw the conclusions of the survey. 41 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  42. 42. SAAB MARFIN MBA ANALYSIS AND FINDINGThere are 7 channel of distribution of vending machine.1) INSTITUTION : The main business of company is coming from institution whichincludes call centers, offices, cooperates. The 70-80% of business is coming frominstitutions. In institution where white collar people work you can expect decency inusing machine from them. Key institutions are Daksh, Satyam, L&T, BSNL, TCS etc2) FACTORY: The 5-10% of business is coming from factories, govt. offices etc.Company supply premixes in bulk. In factories blue collar people work they can’t handlemachine properly.3) ENTERTAINMENT & LEISURE: Third channel of distribution is entertainment whichincludes malls, multiplexes, cinema halls, fast food chain etc. in E&L company focus onbranding like is ties up with several accounts like PVR, CHANKYA, FUN CINEMA, etc.Company spends 25 lakh in PVR for branding. Only 1-2% of business is coming fromthis part.4) EATING & DRNKING: In E&L company is getting only 1-2-% business. In this partcompany works only work on visibility.5) HEALTH CHANNEL: In health Channel Company mainly focus in nursing home,hospital. Company mainly focus on hygiene factor if they find appropriate if install itthere otherwise not. 6) TRAVEL: In travel part we deal in Airport, Railway station, Bus stand, Taxi stand.Company has ties up with Delhi Metro Corporation. 7) HOTELS: In Hotels Company focuses on mass consumption. The main business is ofTea bags.There is no other part where you find footfall of the consumer & you don’t find theproduct of Lipton.This is price comparison chart between the Lipton, Nescafe & Georgia. In the price of teabag all are approximately equal. Cost of coffee premix of nestle is slightly more thanLipton & Georgia. Hot lemon tea is only available from Lipton & Georgia. 42 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  43. 43. SAAB MARFIN MBA PRICE COMPARATIVE CHARTA - Cost per cup of tea with tea bagB – Per cup cost of coffee premixC – Per cup cost of cardamom teaD – Per cup cost of soupE – Per cup cost of hot lemon tea AN ANALYSIS OF THE USE OF TEA/COFFEE MACHINES IN GURGAON From which company do you buy the beverage vending machine services? Lipton 6 16% Nestle 11 29% Fresh n Honest 3 8% Georgia 7 18% Costa Coffee 2 5% Coffee Day 9 24% Express 43 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  44. 44. SAAB MARFIN MBAWhat is an approximate number of employees of yourorganization? Less than 9 24% 100 100-200 6 16% 200-300 5 13% 300-400 3 8% 400-500 1 3% 500-700 6 16% 700-1000 4 11% 1000-1500 0 0% 1500-2000 0 0% 2000-3000 3 8% above 1 3% 3000 Have you ever faced any problems with your service provider?Delivery of the raw material was not on time 1 3%No regular maintenance check ups were done 4 11%Faulty machine infrastructure 0 0% 44Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  45. 45. SAAB MARFIN MBALate response to complaints 2 5%No Complaints 30 79%Any other(please mention) 1 3% Is there any company executive who pays regular visits for a monthly check up of machines? Yes 29 76% No 9 24% How do you rate the product satisfaction? 1 - Bad 0 0% 2 2 5% 3 18 47% 4 16 42% 5 - Good 2 5% Bad Good What kind of relations do you share with your vendor? 1 - Bad 0 0% 2 2 5% 3 20 53% 4 13 34% 5 - Good 3 8% 45Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  46. 46. SAAB MARFIN MBA Bad GoodThere is cut-throat competition among the leading players in the packaged tea marketand HUL is the market leader with a share of around 30 per cent, followed by Nestle at20 per cent.But in out-of-home business of hot beverages, HUL and Nestle have got into thissegment in a big way. They jostle for space with players such as Tata Tea and TataCoffee, the Coffee Day group, which has two brands including Coffee Day Takeaway andCoffee Day Bean to Cup, Sterling InfoTech group’s Fresh & Honest (promoted by NRIbusinessman C Sivasankaran, who also controls the coffee retail chain Barista),Coca-Cola’s Georgia Tea and Coffee and Fountain Consumer Appliances.Accordingly, Nescafe leads in the market as shown by the collected data and, hence,becomes the strongest competitor for Lipton.According to a survey conducted by AC Neilson (released on March 04, 2006), Nescafecontinues to be more popular among instant coffee drinkers. The Rs 511 crores coffeemarket consists of instant and roasted and ground coffee. Nescafe enjoys the largershare of the Rs 361-crore instant coffee market. Although, their all-India retail numbersthat have just come in suggest that Bru has established market leadership with 44%branded coffee drinkers preferring it.The reasons for which the corporate houses prefer vending machines to manualmethods of preparing tea and coffee: Provides options for wide variety of products Time saving Less cost associated Diet, low sugar, without sugar options available for concerned groups Options for hot and cold drinks Keeps record of number of cups dispensed allowing the organization to maintain budget An activity that is closely tied to sales is distribution. You have a factory and you haveyour customers in different locations, which different purchasing patterns and demands.What is the best way to take your product to the customers so that it remains profitablefor the firm too? That is a question answered by distribution. In FMCG, generally we dealin indirect selling, i.e., we sell to someone who then sells it to someone else.There are various reasons for which the company operates this chain through distributorsales management which can be summarized as follows: 46 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  47. 47. SAAB MARFIN MBA The distributors ability to offer a more complete package of services is not only an inventory support, but also an administrative, technical and logistic support. This ability, together with the quick delivery of components to the myriad of customers that manufacturers cannot afford to support, makes distribution a marketing channel of primary consideration. Distributors provide an increased market share for the manufacturers bringing your message to a larger customer base. There can be some business that is too small for you to handle, or too much trouble because of its location. A distributor network will take this burden and change it into on opportunity. Because the distributor is service oriented, he makes it a point to work with business regardless of size or scope. Distributors provide flexibility that manufacturers do not, such as delivery reschedules and small quantity requirementsFinancial Aspects:Deal is confirmed and negotiation ends at the point where both the parties are assuredof their benefits. HUL tries to ensure a return of at least 12% on consumerables to itsdistributors. So, I tried to analyze the account in the following 2 ways:a)Monthly billing of tea and coffee in the company: Let billing = Rs 15000 12% of Rs 15000 = Rs 1800 Here, distributor is in benefit even if he does not charge monthly maintenance charges. Now, the customer doesn’t enter into deal unless he is made acquainted with the benefit available to him. Let us consider a firm ‘A’ having 60 employees and consumption is 120 cups per day (say, 60 cups of tea and coffee each). TEA: 60 * 3 = Rs 180 COFFEE: 60 * 5 = Rs 300 Total = Rs 480 For 1 month = Rs 480 * 25 = 12000 [Add: salary of spot boy = Rs 1000 Add: breakage = Rs 100] Total = Rs 13100[Here, each cup of tea and coffee is assumed to be of Rs 3 and Rs 5 respectively] Now, with Lipton vending machine this cost will minimized as follows:TEA = 2.75 * 60 = Rs 165COFFEE = 2.40 * 60 = Rs 144 47 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  48. 48. SAAB MARFIN MBATotal for 1 month = Rs 309* 25 = Rs 7725Add: Rent = Rs 1500Total = Rs 9225Benefit of customer = 13100– 9225 = Rs 3875ANALYSIS OF THE RESPONSE OF CONSUMERS TOWARDSTEA/COFFEE VENDING MACHINES AT AIRPORTS AND METROSTATIONSFrequencies Statistics How many times Brand Wate of TimeN Valid 100 100 100 Missing 0 0 0Mean 2.50 2.23 3.03Median 2.00 2.00 3.00Mode 2 2 2Frequency Table How many times Cumulative Frequency Percent Valid Percent PercentValid 1-2 20 20.0 20.0 20.0 2-3 31 31.0 31.0 51.0 3-4 28 28.0 28.0 79.0 more than 4 21 21.0 21.0 100.0 Total 100 100.0 100.0 Brand Cumulative Frequency Percent Valid Percent PercentValid Lipton 28 28.0 28.0 28.0 Nestle 37 37.0 37.0 65.0 48 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  49. 49. SAAB MARFIN MBA Coffee Day Express 19 19.0 19.0 84.0 Georgia 16 16.0 16.0 100.0 Total 100 100.0 100.0 Waste of Time Cumulative Frequency Percent Valid Percent PercentValid Strongly Disagree 15 15.0 15.0 15.0 Disagree 24 24.0 24.0 39.0 Neutral 21 21.0 21.0 60.0 Agree 23 23.0 23.0 83.0 Strongly Agree 17 17.0 17.0 100.0 Total 100 100.0 100.0 49Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  50. 50. SAAB MARFIN MBA 50Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  51. 51. SAAB MARFIN MBA FACTOR ANALYSISFactor analysis is a very important test, which helps us in identifying the factors,which contribute maximum to a particular event. The factors, which explain themaximum variance, are identified and depending on the value of theircoefficients they are grouped together and renamed to form a factor, whichexplains the various components, contained in that factor. KMO and Bartletts TestKaiser-Meyer-Olkin Measure of Sampling Adequacy. .516Bartletts Test of Approx. Chi-Square 210.157Sphericity df 36 Sig. .000 51 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  52. 52. SAAB MARFIN MBABartletts test of sphericity indicates whether correlation matrix is an identity matrix,which would indicate whether variables are unrelated. The significance level gives theresult of the test. Very small values (less than .05) indicate that there are significantrelationships among variables. Thus, we can see that as our value of Bartlett’s test is0.000, therefore there is a significant relationship between the variables.Also the Kaiser test shows that the variables are related as the value is 0.516. Onthe basis of these two tests we can say that we can proceed with the Factor Analysison this data. Communalities Initial ExtractionBrand Preference 1.000 .791Taste 1.000 .591Freshness 1.000 .923Availability 1.000 .821Weather Dependent 1.000 .500Price 1.000 .658Level of Sweetness 1.000 .912Service Quality 1.000 .221Variety 1.000 .627Extraction Method: Principal ComponentAnalysis.Communalities indicate the amount of variance in each variable that is accounted for.Initial communalities are estimates of the variance in each variable accounted for by allcomponents or factors. For principal components analysis, this is always equal to 1.0(for correlation analyses) or the variance of the variable (for covariance analyses).Extraction communalities are estimates of the variance in each variable accounted for by 52 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  53. 53. SAAB MARFIN MBAthe factors (or components) in the factor solution. Small values indicate variables that donot fit well with the factor solution, and should possibly be dropped from the analysis.In our analysis, we have dropped variables whose extraction value is less than 0.5. Inthe above table, there is one value below 0.5; service quality therefore, we removethis variable from our further analysis. Total Variance ExplainedComponent Initial Eigenvalues Extraction Sums of Squared Loadings Total % of Variance Cumulative % Total % of Variance Cumulative % 1 2.156 23.955 23.955 2.156 23.955 23.955 2 1.649 18.319 42.274 1.649 18.319 42.274 3 1.159 12.880 55.155 1.159 12.880 55.155 4 1.080 11.999 67.154 1.080 11.999 67.154 di me nsi on 0 5 .999 11.105 78.260 6 .859 9.541 87.801 7 .655 7.275 95.076 8 .293 3.260 98.336 9 .150 1.664 100.000Extraction Method: Principal Component Analysis.This table gives Eigen-values, variance explained, and cumulative variance explained foryour factor solution. The first panel gives values based on initial eigen-values. The"Total" column gives the amount of variance in the observed variables accounted for byeach component or factor. The "% of Variance" column gives the percent of varianceaccounted for by each specific factor or component, relative to the total variance in allthe variables. The "Cumulative %" column gives the percent of variance accounted for byall factors or components up to and including the current one. In a good factor analysis, 53 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  54. 54. SAAB MARFIN MBAthere are a few factors that explain a lot of the variance. For principal componentsextraction, these values will be the same as those reported under Initial Eigen-valuesThe total variance explained by the eleven factors is 67.154%The scree plot helps to determine the optimal number of components. Theeigen-values of each component in the initial solution is plotted. Generally, thecomponents on the steep slope are extracted. The components on the shallowslope contribute little to the solution.The last big drop occurs between the eighth and the ninth components, so weuse the first eight components. Component Matrixa Component 1 2 3 4Brand Preference .700 .442 .164 -.281Taste .071 .215 -.048 .733Freshness .750 -.548 -.243 .034 54 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  55. 55. SAAB MARFIN MBAAvailability .611 .592 .312 -.025Weather Dependent -.135 -.206 .268 -.606Price .177 .562 -.525 -.186Level of Sweetness .756 -.530 -.244 .009Service Quality .277 .171 .285 .185Variety .166 -.297 .697 .160Extraction Method: Principal Component Analysis.a. 4 components extracted.This table reports the factor loadings for each variable on the unrotatedcomponents or factors. Each number represents the correlation between the itemand the unrotated factor.Now we need to find those eight factors that determine the choice. So we repeatthe process by applying factor analysis on the data. The data in all iteration issmaller in size than the previous one. To eliminate the unwanted factors we seethe rotated component matrix. We eliminate those questions wherein thedifference between the highest and the second highest value is less. We continuethis process till we can’t eliminate any factor. So writing all the iterations we getthe following results:Factor Analysis KMO and Bartletts TestKaiser-Meyer-Olkin Measure of Sampling Adequacy. .516Bartletts Test of Approx. Chi-Square 203.411Sphericity df 28 Sig. .000 55 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  56. 56. SAAB MARFIN MBA Communalities Initial ExtractionBrand Preference 1.000 .827Taste 1.000 .544Freshness 1.000 .922Availability 1.000 .822Weather Dependent 1.000 .560Price 1.000 .639Level of Sweetness 1.000 .917Variety 1.000 .739Extraction Method: Principal Component Analysis. Total Variance ExplainedComponent Initial Eigenvalues Extraction Sums of Squared Loadings Total % of Variance Cumulative % Total % of Variance Cumulative % 1 2.114 26.431 26.431 2.114 26.431 26.431 2 1.636 20.445 46.876 1.636 20.445 46.876 3 1.145 14.317 61.192 1.145 14.317 61.192 4 1.076 13.445 74.638 1.076 13.445 74.638 di me nsi on 0 5 .903 11.288 85.926 6 .667 8.339 94.265 7 .309 3.861 98.126 8 .150 1.874 100.000 56Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  57. 57. SAAB MARFIN MBA Communalities Initial ExtractionBrand Preference 1.000 .827Taste 1.000 .544Freshness 1.000 .922Availability 1.000 .822Weather Dependent 1.000 .560Price 1.000 .639Level of Sweetness 1.000 .917Variety 1.000 .739Extraction Method: Principal Component Analysis.Therefore we get the eight components that are taken into consideration whilemaking the choice for tea and coffee while they are out of their homes and for a 57 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  58. 58. SAAB MARFIN MBAparticular brand selection. These are: 1. Brand Preference towards a particular Brand. 2. Taste of the tea/ coffee. 3. Freshness of the tea/coffee. 4. Availability of the tea/coffee machine at the airport and metro station. 5. The choice of coffee and tea also depends on the weather i.e. hot or cold. 6. The price of the cup of tea/ coffee is also an important determinant of the choice. 7. The sweetness in the tea also determines a particular brand. 8. The customers prefer a variety in the drinks like or those who drink 3-4 cups a day wantNow eliminating the negative questions we get the final factors. These are : 1. The service quality of the brand doesn’t make much of a difference to the customers.Therefore our result. 58 Analyzing the competitor factor and boosting up sales PROJECT MARKETING
  59. 59. SAAB MARFIN MBA SWOT ANALYSISSTRENGTHS Strong and well differentiated brands with leading share positions. High quality and safe products, endorsed by the Hindustan Unilever Limited Seal of Guarantee at affordable prices. Strong R&D capability well linked with business ensuring better controls on the quality and consistency of product. Integrated and efficient supply chain and well spread manufacturing units. Distribution structure with wide reach, high quality coverage and ability to leverage scale. Ongoing Product innovation and renovation, to convert consumer insights High quality manpower resources. Attractive design and distinctive features of the machine. Far better preventive and break down maintenance. The distributors are required to undergo quality checks to maintain standards. Aggressive sales team and capable and committed manpower resources. Good market response in Delhi and Noida Tie up with other leading chains –DMRC, PVR, Airtel, HCL Technology, Reliance Energy, Ansal Plaza to name a few. Environment friendly cups. Excellent range of tea and coffee premixes providing flexibility of sweetness and diet option for concerned people.WEAKNESSES Limited success in changing consumption habits of people. Complex supply chain configuration, unwieldy number of SKUs with dispersed manufacturing locations. Price positioning in some categories allows for low price competition. Stock-out in case of much advertised flavors acts as a barrier in the retail channels. Much higher machine prices with lesser flexibility vis-à-vis competition which leads to higher rentals/EMIs. Low viability of revenue sharing model especially during off-season.Analyzing the competitor factor and boosting up sales PROJECT MARKETING 59
  60. 60. SAAB MARFIN MBA .Absence of ginger flavor in the premix range of tea and this is the most preferred flavor in northern India especially during winters Vending machine having customization like token system are highly priced making it unviable for many corporate clients in a need to record/control consumption. After sales service not up to the “Expected Standards”. Hot beverages are less preferred during summers.OPPORTUNITIES Brand growth through increased consumption depth and frequency of usage Market growth through increased penetration in the unventured industrial areas like Patparganj etc. Upgrading consumers through innovation to new levels of quality and performance. Growing consumption in Out of Home categories and high potential market. Changing lifestyles. Development of alternate channels such as catering, STD/PCOs, cyber café, pump, etc. Involving DSAs and courier companies for lead generation on commission basis as have access to administration department of the corporate houses. Leveraging technology to develop more products that provide Nutrition, Health and Wellness. To increase acceptance of instant Tea/Coffee amongst masses by sampling promotion etc., who still seem to be averse to it, keeping in mind the unpredictable preference in taste especially because of the loose control of the same in the competitor’s machines. Introduction of a consumer finance scheme by a third party e.g. GE country finance can widen the machine placement base without utilizing distributors capital. Hosting the Commonwealth Games in 2010 will influence the development of the retail infrastructure creating opportunities for vending operators to fill the gap in the market.THREATS Low priced competition now present in all categories. Spurious/counterfeit products. Seasonality. 60Analyzing the competitor factor and boosting up sales PROJECT MARKETING

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