1A PROJECT REPORTOnStudy of Consumer Behaviour towards Products OfHindustan Unilever Ltd (HUL)(Submitted in partial fulfil...
2ACKNOWLEDGEMENTSurvey is an excellent tool for learning an exploration no classroom routine can substitute whichis possib...
3TABLE OF CONTENTS1. Company Profile 42. Introduction 83. Rationale 114. Literature review and Problem formulation 125. Ob...
4COMPANY PROFILEIf Hindustan Unilever straddles the Indian corporate world, it is because of being single-mindedin identif...
5History of HULIn the summer of 1888, visitors to the Kolkata harbor noticed crates full ofSunlight soap bars, embossed wi...
6another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Unilever Limited,to market Lakmes market-leading...
7HUL launched a slew of new business initiatives in the early part of 2000’s. Project Shakti wasstarted in 2001. It is a r...
8INTRODUCTIONHindustan Unilever Limited (abbreviated to HUL), formerly Hindustan Lever Limited, isIndias largest consumer ...
9to the Indian public, being the first among the foreign subsidiaries to do so. Unilever now holds52.10% equity in the com...
10BRANDSHOME AND PERSONAL CAREFOODSPure it – The worlds most advanced in-home water purifierLux BreezeLifebuoy DoveLiril P...
11RATIONALEI KALPESH PATEL of IITM has chosen the topic “to study the Products OfHindustan Unilever Ltd (HUL)and to study,...
12REVIEW OF LITERATUREHindustan Unilever Limited is the Indian arm of the Anglo-Dutch company –Unilever. BothUnilever and ...
13SWOT ANALYSISSTRENGTHSHindustan Unilever Limited (HUL) is Indias largest Fast Moving Consumer GoodsCompany, touching the...
14Globalization.ThreatsHULs tea business has declined marginally; reason is that, cost pressure is likely due torising cru...
15OBJECTIVE OF STUDYThe main objective of this project is to find, what are the steps Hindustan Unilever Ltd. isadapting t...
16RESEARCH METHODLOGYThere is large no. of FMCG companies in the market, to find the defining strategies used, themethodol...
17METHODOLOGY FOR RESEARCH PROBLEMFollowing steps where taken in to consideration, to identify the research problem-1. Inf...
18I also interviewed some of the shop owner and distributors and try to find out what the companyis doing to sustain their...
19ANALYSIS AND INTERPRETATION OF DATAMARKET SHARE OF FMCG COMPANIES IN INDIAIn the above pie charts we see the position of...
20MARKET LEADER-HINDUSTAN UNILEVER LIMITEDAs mentioned in the above graph ,hul is enjoying the leader position in the mark...
21In some category market challengers are giving high level competition in different product linessuch as ketchup and toot...
22PORTFOLIO STRADDLING THE PYRAMID ACROSS CATEGORIESParticulars Laundry Soaps Shampoo Skin Toothpaste tea CoffeeMarket siz...
23STRONG GLOBAL BRAND: DOVEAs mentioned in the above graph, hul is enjoying the leader position in the market and is havin...
24As mentioned in the above graph ,hul is enjoying the leader position in the market and is havinghigh market share in per...
25HUL FMCG SALES GROWTH%EBIT MARGIN024681012142002 2003 2004 2005 2006 2007 2008 2009SALES GROWTH%13.20%15.50%19.30%20.10%...
26HUL EARNING PER SHARERETURN ON CAPITAL EMPLOYED14.60%18.30%19.70% 19.90%13.30%15.70%20.60%21.40%0.00%5.00%10.00%15.00%20...
27RETURN ON NET WORTH52.7 53.948.482.857.261.168.101020304050607080902002 2003 2004 2005 2006 2007 2008Series 1
28CONCLUSIONS AND SUGGETIONSSUGGESTIONS AND RECOMMENDATIONSAs it is obvious from the study the products of HUL have approa...
29CONCLUSIONIn recent years, the FMCG sector declined due to down trading. Also because of presence oflarge number of comp...
30LIMITATIONS OF THE STUDYIn attempt to make this project authentic and reliable, every possible aspect of the topic was k...
31BIBLIOGRAPHYWEBSITESwww.hul.co.inwww.fmcg.comwww.economictimes.comBOOKSKothari ,CR, research methodologyPhilip kotler, m...
32APPENDIXQUESTIONNAIRENAME: SEX:AGE: MARITAL STATUS:MONTHLY INCOME:Q1) Do you use FMCG products?Yes ------No ------Q2) Wh...
33Q6) During purchase what in influence your purchase?Price --------Quality -------Packaging --------Experience -------Inf...
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Behaviour towards products of hindustan unilever ltd (hul)

  1. 1. 1A PROJECT REPORTOnStudy of Consumer Behaviour towards Products OfHindustan Unilever Ltd (HUL)(Submitted in partial fulfillment of the requirement of Bachelor of BusinessAdministration, Distance Education)Punjab technical University, JalandharProject Report Guide: Submitted By:Name: Mrs. Nisha Solanki Name: Kalpesh PatelDesignation: Asst. Professor Enrolment No: 820121066Specialization: MarketingBBA (2008-2011)Indraprastha Institute of Technology & Management,D-21 Institutional Area janakpuri, New Delhi
  2. 2. 2ACKNOWLEDGEMENTSurvey is an excellent tool for learning an exploration no classroom routine can substitute whichis possible while working in real situations application of the article knowledge to practicalsituations is the bonanzas of this survey.Without a proper combination of inspection and perspiration, it’s not easy to achieve anything.There is always a sense of gratitude, which we express to other for the help and the needy servicethey render during the development of this project.First of all I wish to express my profound gratitude & sincere thanks to my esteemed learnedDirector who allowed me to conduct the survey.I would like to thank my lect. Mrs. Nisha Solanki who has always there to help and guide mewhen I needed help. His perceptive criticism kept me working to make the project more fullproof. I am thankful to her for her encouraging & enriching experience for me. I am verythankful to him for all the addition & enhancement done to us.No words can adequately express our overriding debt of gratitude to my parents whosesupport helps me in all the way above all I shall thank all my friends….!Name: KALPESH PATELEnroll no: 820121066
  3. 3. 3TABLE OF CONTENTS1. Company Profile 42. Introduction 83. Rationale 114. Literature review and Problem formulation 125. Objectives and Research Mythology 146. Analysis and Interpretation of data 197. Conclusions / Suggestions 288. Reference / Bibliography 319. Appendixa. Questionnaire 32
  4. 4. 4COMPANY PROFILEIf Hindustan Unilever straddles the Indian corporate world, it is because of being single-mindedin identifying itself with Indian aspirations and needs in every walk of life.Type Public company BSE: 500696Industry Fast Moving Consumer Goods FMCG)Founded 1933Headquarters Mumbai, IndiaKey people Harish Manwani (Chairman), Nitin Paranjpe (CEOand Managing Director)Products Home & Personal Care, Food & BeveragesRevenue 17,873.44 crore (US$3.97 billion) (2009-2010) [1]Net income 2,202.03 crore (US$488.85 million)Employees Over 65,000 direct & indirect employeesParent Unilever Plc (52%)Website www.hul.co.in
  5. 5. 5History of HULIn the summer of 1888, visitors to the Kolkata harbor noticed crates full ofSunlight soap bars, embossed with the words “Made in England by LeverBrothers". With it began an era of marketing branded Fast Moving Consumer Goods (FMCG).Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim.Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937.In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati ManufacturingCompany, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935).These three companies merged to form HUL in November 1956; HUL offered 10% of its equityto the Indian public, being the first among the foreign subsidiaries to do so. Unilever now holds52.10% equity in the company. The rest of the shareholding is distributed among about 360,675individual shareholders and financial institutions.The erstwhile Brooke Bonds presence in India dates back to 1900. By 1903, the company hadlaunched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was formed.Brooke Bond joined the Unilever fold in 1984 through an international acquisition. The erstwhileLiptons links with India were forged in 1898. Unilever acquired Lipton in 1972 and in 1977Lipton Tea (India) Limited was incorporated.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 very early years, HUL has vigorously responded to the stimulus of economic growth.The growth process has been accompanied by judicious diversification, always in line withIndian opinions and aspirations. TheLiberalization of the Indian economy, started in 1991, clearly marked an inflexion in HULs andthe Groups growth curve. Removal of the regulatory framework allowed the company to exploreevery single product and opportunity segment, without any constraints on production capacity.Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the mostvisible and talked about events of Indias corporate history, the erstwhile Tata Oil MillsCompany (TOMCO) merged with HUL, effective from April 1, 1993. In 1996, HUL and yet
  6. 6. 6another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Unilever Limited,to market Lakmes market-leading cosmetics and other appropriate products of both thecompanies. Subsequently in 1998, Lakme Limited sold its brands to HUL and divested its 50%stake in the joint venture to the company.HUL formed a 50-50 joint venture with the US-based Kimberly Clark Corporation in 1994,Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary Pads. HUL hasalso set up a subsidiary in Nepal, Unilever Nepal Limited (UNL), and its factory represents thelargest manufacturing investment in the Himalayan kingdom. The UNL factory manufacturesHULs products like Soaps, Detergents and Personal Products both for the domestic market andexports to India.The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on the Foods andBeverages front. In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, withsignificant interests in Instant Coffee. In 1993, it acquired the Kissan business from the UBGroup and the Dollops Ice-cream business from Cadbury India.As a measure of backward integration, Tea Estates and Doom Dooma, two plantation companiesof Unilever, were merged with Brooke Bond. Then in 1994, Brooke Bond India and Lipton Indiamerged to form Brooke Bond Lipton India Limited (BBLIL), enabling greater focus andensuring synergy in the traditional Beverages business. 1994 witnessed BBLIL launching theWalls range of Frozen Desserts. By the end of the year, the company entered into a strategicalliance with the Kwality Ice-cream Group families and in 1995 the Milk-food 100% Ice-creammarketing and distribution rights too were acquired.Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal restructuringculminated in the merger of Ponds (India) Limited (PIL) with HUL in 1998. The two companieshad significant overlaps in Personal Products, Specialty Chemicals and Exports businesses,besides a common distribution system since 1993 for Personal Products. The two also had acommon management pool and a technology base. The amalgamation was done to ensure for theGroup, benefits from scale economies both in domestic and export markets and enable it to fundinvestments required for aggressively building new categories.In January 2000, in a historic step, the government decided to award 74 per cent equity inModern Foods to HUL, thereby beginning the divestment of government equity in public sectorundertakings (PSU) to private sector partners. HULs entry into Bread is a strategic extension ofthe companys wheat business. In 2002, HUL acquired the governments remaining stake inModern Foods.In 2003, HUL acquired the Cooked Shrimp and Pasteurised Crabmeat business of the AmalgamGroup of Companies, a leader in value added Marine Products exports.
  7. 7. 7HUL launched a slew of new business initiatives in the early part of 2000’s. Project Shakti wasstarted in 2001. It is a rural initiative that targets small villages populated by less than 5000individuals. It is a unique win-win initiative that catalyses rural affluence even as it benefitsbusiness. Currently, there are over 45,000 Shakti entrepreneurs covering over 100,000 villagesacross 15 states and reaching to over 3 million homes.In 2002 in 2002, HUL made its foray into Ayurvedic health & beauty centre category with theAyush product range and Ayush Therapy Centres. Hindustan Unilever Network, Direct to homebusiness was launched in 2003 and this was followed by the launch of ‘Pure-it’ water purifier in2004.In 2007, the Company name was formally changed to Hindustan Unilever Limited afterreceiving the approval of share holders during the 74th AGM on 18 May 2007. Brooke Bond andSurf Excel breached the the Rs 1,000 crore sales mark the same year followed by Wheel whichcrossed the Rs.2,000 crore sales milestone in 2008.On 17th October 2008, HUL completed 75 years of corporate existence in India
  8. 8. 8INTRODUCTIONHindustan Unilever Limited (abbreviated to HUL), formerly Hindustan Lever Limited, isIndias largest consumer products company and was formed in 1933 as Lever Brothers IndiaLimited. It is currently headquartered in Mumbai, India and its 41,000 employees are headed byHarish Manwani, 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 household name inIndia. The Anglo-Dutch company Unilever owns a majority stake in Hindustan UnileverLimited.The company was renamed in late June 2007 to "Hindustan Unilever Limited" to provide theoptimum balance between maintaining the heritage of the Company and the future benefits andsynergies of global alignment with the corporate name of "Unilever".Hindustan Unilever Limited (HUL) is Indias largest fast moving consumer goods company, withleadership in Home & Personal Care Products and Foods & Beverages. HULs brands, spreadacross 20 distinct consumer categories, touch the lives of two out of three Indians. They endowthe company with a scale of combined volumes of about 4 million tones and sales of Rs.13,718crores.MISSIONUnilevers mission is to add Vitality to life. Meet everyday needs for nutrition, hygiene, andpersonal care with brands that help people feel good, look good and get more out of life.It is a mission HUL shares with its parent company, Unilever, which holds 52.10% of the equity.A Fortune 500 transnational, Unilever sells Foods and Home and Personal Care brands in about100 countries worldwide.ORIGINIn the summer of 1888, visitors to the Kolkata harbor noticed crates full of Sunlight soap bars,embossed with the words "Made in England by Lever Brothers". With it began an era ofmarketing branded Fast Moving Consumer Goods (FMCG).Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim.Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937.In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati ManufacturingCompany, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935).These three companies merged to form HUL in November 1956; HUL offered 10% of its equity
  9. 9. 9to the Indian public, being the first among the foreign subsidiaries to do so. Unilever now holds52.10% equity in the company. The rest of the shareholding is distributed among about 360,675individual shareholders and financial institutions.MANAGEMENT STRUCTUREHindustan Unilever Limited is Indias largest Fast Moving Consumer Goods (FMCG) Company.It is present in Home & Personal Care and Foods & Beverages categories. HUL and Groupcompanies have about 15,000 employees, including 1200 managers.The fundamental principle determining the organization structure is to infuse speed andflexibility in decision-making and implementation, with empowered managers across thecompany’s nationwide operations.BOARDThe Board of Directors as repositories of the corporate powers act as a guardian to the Companyas also the protectors of shareholder’s interest.This Apex body comprises of a Non- Executive Chairman, four whole time Directors and fiveindependent Non – Executive Directors. The Board of the Company represents the optimum mixof professionalism, knowledge and experience.Management CommitteeThe day-to-day management of affairs of the Company is vested with the ManagementCommittee which is subjected to the overall superintendence and control of the Board. TheManagement Committee is headed by Mr. Nitin Paranjpe and has functional heads as itsmembers representing various functions of the Company.LeadershipHUL has produced numerous business leaders for corporate India. It is referred to as a CEOFactory in the Indian press for the same reasons. Its leadership building potential wasrecognized when it was ranked 4th in the Hewitt Global Leadership Survey 2007 with only GE,P&G and Nokia ranking ahead of HUL in the ability to churn out leaders with regularity.
  10. 10. 10BRANDSHOME AND PERSONAL CAREFOODSPure it – The worlds most advanced in-home water purifierLux BreezeLifebuoy DoveLiril PearsHamam RexonaSurf Excel Fair & LovelyRin PondsWheel VaselineAvianceSunsilk Naturals PepsodentClinic CloseupAxe LakmeRexonaAyushBrooke Bond Brooke Bond BruLiptonKissan Kwality WallsAnnapurnaKnorr
  11. 11. 11RATIONALEI KALPESH PATEL of IITM has chosen the topic “to study the Products OfHindustan Unilever Ltd (HUL)and to study,Consumer buying behaviorConsumer response,Consumer perception, andBrand image in the eyes of consumersMarketing leadersInterest of consumers
  12. 12. 12REVIEW OF LITERATUREHindustan Unilever Limited is the Indian arm of the Anglo-Dutch company –Unilever. BothUnilever and HUL have established themselves well in the Fast Moving Consumer Goods(FMCG) category. In India, the company offers many households brands like, Dove, Lifebuoy,Lipton, Lux, Pepsodent, Ponds, Rexona, Sunsilk, Surf, Vaseline etc. Some of its efforts were alsorewarded when four of HUL brands found place in the ‘Top 10 brands’ list for the year 2008published in The Economic Times.Unilever was a result of the merger between the Dutch margarine company, Margarine Unie, andthe British soap-maker, Lever Brothers, way back in 1930. For 70 years, Unilever was theundisputed market leader but now faces tough competition from Proctor & Gamble and Colgate-Palmolive.HUL is also known for its strong distribution network in India. In order to further strengthen itsdistribution in the rural areas and to empower the local women, HUL launched a Project Shaktiin 2000 in a district in Andhra Pradesh. The idea behind this project was to create womenentrepreneurs and provide them with micro-credit and training in enterprise management, whichwould enable them to create self- help groups and become direct-to-home distributors of HULproducts. Today Project Shakti is present across 80,000 villages in 15 states and is helping manyunderprivileged women earn their livelihood.As the per-capita income of India is increasing along with the Indian population. So, the futurefor the FMCG Companies is bright. To analysis the past performance & the future demand ofHUL, FMCG products we have considered following points:We have a listed the different FMCG product lines of HUL.We have done competitor’s analysis in which the market share of top FMCG companiesare analysed & the market share of HUL’S different categories product are analyzed withcomparison to its competitors.Then performance analysis is made by taking 10 year financial data from 1998-2007.The profit & sales growth is analyzed we have done SWOT analysis to know the threat& opportunities of HUL in present market.The future opportunities for FMCG products are taken into consideration by analyzingthe increased per capita income & increased disposable income to forecast the futuredemand of HUL.
  13. 13. 13SWOT ANALYSISSTRENGTHSHindustan Unilever Limited (HUL) is Indias largest Fast Moving Consumer GoodsCompany, touching the lives of two out of three Indians with over 20 distinct categoriesin Home & Personal Care Products and Foods & Beverages...Due to its long presence in India – has deep penetration – 20 consumer product category,over 15,000 employees, including over 1,300 managers, is to "add vitality to life."The company derives 44.3% of its revenues from soaps and detergents, 26.6% frompersonal care products, 10.5% from beverages, and the rest from foods, ice creams,exports, and other products.Low cost of production due to economic of scale. That means higher profits and / or morecompetitioners. Better market penetration.HUL is also one of the countrys largest exporters; it has been recognized as a GoldenSuper Star Trading House by the Government of India.WeaknessStrong competitors and availability of substitute productsLow export levelsHigh price of some productsHigh advertising costOpportunitiesIncreasing per capita national income resulting in higher disposable income.Growing middle class and growing urban population.Increasing gifts cultures.Increasing departmental stores concept – impulse @ at cash counters.
  14. 14. 14Globalization.ThreatsHULs tea business has declined marginally; reason is that, cost pressure is likely due torising crude and freight costs.Tax and regulatory structure.Mimic of brands.Removal of import restrictions resulting in replacing of domestic brands.Temporary slowdown in economy can have an impact on FMCG in Industry.
  15. 15. 15OBJECTIVE OF STUDYThe main objective of this project is to find, what are the steps Hindustan Unilever Ltd. isadapting to be market leader and to differentiate itself from its competitors.What is the steps company is utilizing to find current trend in the market.To study various brands of HULTo study the competitive brands in the market of ,home care products,. food brands, personalcare productsTo find the market share of the HUL brands and its competitive brands.To determine the key areas of strength and weakness for HUL brands To develop apromotion plan for brand communication of the HULTo study various marketing strategies of huL
  16. 16. 16RESEARCH METHODLOGYThere is large no. of FMCG companies in the market, to find the defining strategies used, themethodology used is interview and survey method.Data Collection Method:For this research study, primary data as well as secondary data was collectedPrimary Data has been collected through personal contact. For this purpose both questionnaireand one-on-one interview was considered with the consumers, shop owners and distributors &suppliers of the company.Secondary data has collected from magazines, newspaper, company literature and websites.Data analysis:Analyzing codes to each question were awarded. Thereafter which aws written and than analysedMAJOR FINDINGSMajor competitors1. Dabur2. Jhandu3. Johnson &Johnson4. Cavin Care5.Procter & Gamble 6. Britannia7. ITC8. Gillette
  17. 17. 17METHODOLOGY FOR RESEARCH PROBLEMFollowing steps where taken in to consideration, to identify the research problem-1. Informal investigation• Visit to the shop owners, talked to the distributors and to the consumers in the locality andsurrounding areas.2. External and Internal Analysis• Understanding customer problem• Understanding the market structure3. Situational Analysis• Tastes & preferences• Needs & income• Major CompetitorsITCDaburProcter & GambleCavin CareAmulJohnson & Johnson, etcA Compressive study of Secondary and Primary data (Informal Interviews) was collectedthrough specific questionnaires for people and shop-owners & distributors.SAMPLING TECHNIQUEFor my survey I used Cluster Sampling technique. I selected a sample of 100 people around thearea and interviewed them according to the questionnaire. In the survey I tried to find out theirpreferences & tastes, their purchasing habit, are they brand loyal or they consider their friendsadvice or some reference group duringpurchasing. I also tried to find out that are they satisfiedwith the quality or present stature of product, did they want any change in the existing product.
  18. 18. 18I also interviewed some of the shop owner and distributors and try to find out what the companyis doing to sustain their customer and what new changes they are bringing in their product togain competitive advantage from other competitorsRESEARCH INSTRUMENTResearch instruments, for the purpose of primary data collection were Questionnaires. TheQuestionnaires were designed in two sets, one is for customers and another is for shop-ownersand distributors.• The first set is to find out about the needs and preferences of the customers and what they wantfrom in the product and also the level of knowledge about different products in the market.• Second set is all about what are the steps company are taking to get about the informationabout he changing preferences in the taste and needs of the customers and what company isdoing to sustain their market position as well as to tap new market.DATA ANALYSISFor the analysis of data collected through survey work, a series of steps were followed which aregiven in a chronological order•Each question of the questionnaire was assigned codes (coding)•Each questionnaire was punched into ms-excel sheet thus forming a data base (punching)•Further the data was analyzed by using diagrams, graphs, charts etc.•The graphic rating scale and ranking method was used to measure the response and attitude ofthe customer.Finally, an effort was made to extract meaningful information from analyzed data, which actedas a base for the recommendations
  19. 19. 19ANALYSIS AND INTERPRETATION OF DATAMARKET SHARE OF FMCG COMPANIES IN INDIAIn the above pie charts we see the position of various FMCG companies doing business in India.We can see that HUL is enjoying the position of market leader and is following by ITC as closesecond in the market share of FMCG products.34%29%8%6%4%19%hulitcnestlebritaniadaburothers
  20. 20. 20MARKET LEADER-HINDUSTAN UNILEVER LIMITEDAs mentioned in the above graph ,hul is enjoying the leader position in the market and is havinghighest market share which are followed by the market challengers like dabur India ltd ,nestle,itc etc. in different categories of fmcg products like shampoos deos, coffee, dish wash etc.HINDUSTAN UNILEVER LIMITED-COMPETITORS37.554.357.354.547.869.722.74467.513.69.7 8.7 7.423.714.520.839.13.401020304050607080hulcompetition market share29.5 28.148.830.30102030405060toothpaste ketchupshulcompetition market share
  21. 21. 21In some category market challengers are giving high level competition in different product linessuch as ketchup and tooth paste.So we can see that in overall FMCG business HUL is distantly ahead of rest of the companies asfar as market share of different product are concernedCATEGORY WISE SALE GROWTH OF FMCG SECTOR OF HUL IN IN INDIACATEGORY PERCENTAGESOAPS AND DETERGENTS 19.3%PERSONAL PRODUCTS 22.4%ICE CREAM 15.7%PROCESSED FOODS 13.7%BEVERAGES 13.6%OTHERS 19.4%19.30%22.40%15.70%13.70%13.60%19.40%SOAPS AND DETERGENTSPERSONAL PRODUCTSICE CREAMPROCESSED FOODSBEVERAGESOTHERS
  22. 22. 22PORTFOLIO STRADDLING THE PYRAMID ACROSS CATEGORIESParticulars Laundry Soaps Shampoo Skin Toothpaste tea CoffeeMarket size-$ mln2247 1658 542 698 691 1113 177Hul share 37.5% 54.3% 47.8% 54.5% 29.5% 22.7% 44.0%Nearestcompetitor13.6 9.7 23.7 7.4% 48.8% 20.8% 39.1%CATEGORY LEADERSHIP: LAUNDRYAs mentioned in the above graph, hul is enjoying the leader position in the market and is havinghigh market share in home care products.34.534.134.334.535.236.53737.5323334353637382002 2003 2004 2005 2006 2007 2008 2009LAUNDRY MARKET SHARE
  23. 23. 23STRONG GLOBAL BRAND: DOVEAs mentioned in the above graph, hul is enjoying the leader position in the market and is havinghigh market share in personal care products. Dove is a global brand and used by millions ofcustomers, due to various innovations made it is becoming famous among teenagers and thesales are constantly increasing.MARKET SHARE OF HINDUSTAN UNILEVER – SKIN CARE PRODUCTS0%10%20%30%40%50%60%70%MAY JUNE JUL AUG SEP OCT NOV DECSeries 1
  24. 24. 24As mentioned in the above graph ,hul is enjoying the leader position in the market and is havinghigh market share in personal care products.nivea and garnier are strong competitors of hul inskin care products to stay ahead it has to do advertisements and give various promotional offers.FINANCIAL OVERVIEW2009 2008 2007REPORTED GROWTH 13.3% 9.4% 11.4%CONTINUING SALESGROWTH13.5% 10.0% 11.5%EBIT/SALES% 14.4% 14.1% 13.3%EBIT GROWTH 15.4% 16.2% 1.1%OPERATING CASHFLOW$365MN $489MN45%25%20%5%5%SalesHULNIVEAGARNIERAYUREMAMI
  25. 25. 25HUL FMCG SALES GROWTH%EBIT MARGIN024681012142002 2003 2004 2005 2006 2007 2008 2009SALES GROWTH%13.20%15.50%19.30%20.10%14.70%13.30%14.10% 14.40%0.00%5.00%10.00%15.00%20.00%25.00%2002 2003 2004 2005 2006 2007 2008 2009Series 1
  26. 26. 26HUL EARNING PER SHARERETURN ON CAPITAL EMPLOYED14.60%18.30%19.70% 19.90%13.30%15.70%20.60%21.40%0.00%5.00%10.00%15.00%20.00%25.00%2002 2003 2004 2005 2006 2007 2008 2009Series 153.8 52.8 51.8 5340.862.3 61.10102030405060702002 2003 2004 2005 2006 2007 2008Series 1
  27. 27. 27RETURN ON NET WORTH52.7 53.948.482.857.261.168.101020304050607080902002 2003 2004 2005 2006 2007 2008Series 1
  28. 28. 28CONCLUSIONS AND SUGGETIONSSUGGESTIONS AND RECOMMENDATIONSAs it is obvious from the study the products of HUL have approached the high watermark of sale in the global consumer market. However, there are genuine reasons toobserve that they have yet to attain the cutting edge status on many counts. In this regarda few suggestions can be made to give the required boost to the marketing prospects ofHUL products. These can be summed up as follows:An attempt should be made by HUL management to tap all the potentials offered by theglobal market by devoting a more substantial, efficient and better equipped resource base.This task can be accomplished in the first place by implementing a stronger and moreending distribution channel for various products so that even those sections of consumerswho are not accessible so easily, can be covered with greater ease.Efficient infrastructural base coupled with better and more comprehensive advertisingstrategies should be resorted to; though HUL is presently surfing ahead of others on thepath of taking some great initiatives it should be more concerned about it for the purposeof corporate image building.The price structure for various products should be more within the limit of affordabilityfor consumers; the grassroots consideration in this regard should note ignored. Here, thepolicy of loco-centric rather than uniform price structure would certainly be moreadvantageous.HUL should go for more planned and sensible marketing and advertising strategies with aview to accomplishing the task of global brand image buildings.Hyper marketing and retailing network should get special attention as vital componentsof HUL’s marketing policy
  29. 29. 29CONCLUSIONIn recent years, the FMCG sector declined due to down trading. Also because of presence oflarge number of companies trying to seize this opportunity, this force the old HUL for thechange and thus, their transformation has resulted in a new HUL, which has successfullyfaced this challenge and reversed this trend. It has done so by substantially strengtheningtheir brands and building capabilities. This has already begun to yield benefits and they arereturning to growth. Volume growth is being followed by value growth, which in turn isbringing profit growth.India is one of the most exciting markets offering great potential. Over the next 10 years, theper capita income in India is likely to double. In FMCG, there is an opportunity to catalyzepenetration, increase usage, and upgrade consumers. As a result, the FMCG market isexpected to grow to over Rs.100,000 cores from its current base of Rs.40,000 crores.The new Hindustan Lever see an exciting opportunity for growth. They have 35 powerfulbrands covering all segments, with leading market positions in most. Today, these arestronger and more relevant to the consumer than ever. The people are energized by the scaleof the opportunity and determined to seize it. The scale of the business and operations givesthem the resources needed. They are delivering good services and the changes they broughtin the products are well taken by the customers, by this they are generating sustainableprofitable growth
  30. 30. 30LIMITATIONS OF THE STUDYIn attempt to make this project authentic and reliable, every possible aspect of the topic was keptin mind. Nevertheless, despite of fact constraints were at play during the formulation of thisproject.The main limitations are as follows:Due to limitation of time only few people were selected for the study. So the sample ofconsumers was not enough to generalize the findings of the study.The main source of data for the study was primary data with the help of self-administered questionnaires. Hence, the chances of unbiased information are less.People were hesitant to disclose the true facts.The chance of biased response can’t be eliminated though all necessary steps were takento avoid the same.
  31. 31. 31BIBLIOGRAPHYWEBSITESwww.hul.co.inwww.fmcg.comwww.economictimes.comBOOKSKothari ,CR, research methodologyPhilip kotler, marketing management
  32. 32. 32APPENDIXQUESTIONNAIRENAME: SEX:AGE: MARITAL STATUS:MONTHLY INCOME:Q1) Do you use FMCG products?Yes ------No ------Q2) Which brand of FMCG products do you use?Hindustan Unilever --------P &G --------Nivea ---------Others --------Q3) where do you buy FMCG products from?Super stores ---------Retail Stores ---------Others --------Q4) Which Hindustan Unilever’s product do you usually prefer or use? Bathing soaps ------Skin care -------Foods --------Deodorants --------Others --------Q5) Do you think Hindustan Unilever’s product is easily available in market?Yes ------No ------
  33. 33. 33Q6) During purchase what in influence your purchase?Price --------Quality -------Packaging --------Experience -------Influence by others --------Q7) Describe Hindustan Unilever in one word?---------------------------------------------------8. Your comments on Hindustan Unilever’s product?-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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