RESEARCH REPORT                               ON    “A STUDY A DISTRIBUTION   CHANNEL OF UNILEAVER IN         RURAL MARKET...
ACKNOWLEDGEMENT                      “Words express everything                         Mouth Co-ordinates,                ...
TABLE OF CONTENTS INTRODUCTION COMPANY PROFILE PRESENT MARKET STRATEGY RESEARCH METHODOLOGY FINDINGS AND CONCLUSIONS...
EXECUTIVE SUMMARYUnilever is India’s largest Fast Moving Consumer Goods Company,touching the lives of two out of three Ind...
INTRODUCTIONHISTORYOver 100 years link with India. In the summer of 1888, visitors to theKolkata harbor & noticed crates f...
The erstwhile Liptons links with India were forged in 1898. Unileveracquired Lipton in 1972, and in 1977 Lipton Tea (India...
UNILEVER and divested its 50% stake in the joint venture to thecompany.UNILEVER formed a 50:50 joint venture with the US-b...
Finally, BBLIL merged with UNILEVER, with effect from January 1,1996. The internal restructuring culminated in the merger ...
COMPANY PROFILEThe mission that inspires UNILEVERs 36,000 employees, includingover 1,350 managers, is to "add vitality to ...
UNILEVER believes that an organisations worth is also in the service itrenders to the community. UNILEVER is focusing on h...
approximately 15000 villages of 8 states. The vision is to make abillion Indians feel safe and secure. If Hindustan Lever ...
FINANCIAL OVERVIEW                     12
Hindustan Lever Limited Shareholding                  Pattern           Flls           13.7Domestic  Fls  14.8            ...
PRESENT MARKETING STRATEGY:Mission:Unilevermission is to add Vitality to life. We meet everyday needs for nutrition,hygien...
Obeying the Law   UNILEVER companies and employees are required to comply with the laws   and regulations of the countries...
ShareholdersUNILEVER will conduct its operations in accordance with internationallyaccepted principles of good corporate g...
UNILEVER neither supports political parties nor contributes to the funds ofgroups whose activities are calculated to promo...
UNILEVER accounting records and supporting documents must accuratelydescribe and reflect the nature of the underlying tran...
Any breaches of the Code must be reported in accordance with the proceduresspecified by the Joint Secretaries. The Board o...
The company is committed to making its products environmentally acceptable,on a scientifically established basis, while fu...
UNILEVER will achieve this through an Integrated Environment Managementapproach, which focuses on People, Technology and F...
FMCG Market (HLL Categories)                  Growth%         00       01        02           03   8   6   4        6.7   ...
Price reductionPrice reduction (Bottles) & Value improvement (Sachets)                                                    ...
Investment Behind BrandsInnovation & Superior QualityFamily – safe        Petalsoft   Water & effort saving   Quick wash -...
Perfect Radiance “5 in 1” hair     Total Care   Whiter teeth   Fresher breath                 health benefitsCurrent Marke...
Processed Foods                • Corrective actions                      – Phased stock reduction                      – W...
PRODUCTSLux                BreezeLifebuoy           DoveLiril              PearsHamam              RexonaSurf Excel       ...
Rexona Ayush  Brooke Bond                    Bru  Lipton  Kissan                         Kwality Walls  Knorr AnnapurnaIND...
country, has competitive advantage - Marine Products, Castor and itsDerivatives and Rice. UNILEVER enjoys international re...
meals. The brands are Gold Seal Indus Valley, Rozana and Annapurna.                                      Castor:The catego...
ACCORDINGLY, UNILEVERS AIMS ARE TO:   Ensure safety of its products and operations for the environment    by     using   ...
 Reduce Waste, conserve Energy and explore opportunities for    reuse and recycle. Involve all employees in the implemen...
 Formally review environment performance of the company once      every quarter.   Review     environment      performan...
 Establish systems for appropriate training in implementation of  Environment Management Systems at work. Ensure that al...
INDIVIDUAL UNITS     The overall responsibility for environment management at each      unit will rest with the Unit Head...
exercises should be implemented prior to commencement of the    activity. Manage change in People, Technology and Facilit...
RESEARCH AND INNOVATION CENTRESSince most new products and processes are developed in these Units,certain additionalrespon...
products and services that are appropriate to the various price pointsin the market as well as to their commitment to buil...
SAFETY AND HEALTH POLICYUnileversupplies high quality goods and services to meet the dailyneeds of consumers and customers...
SAFETY PRINCIPLES:UNILEVERs Occupational Safety and Health Policy is based on andsupported by the following eight Principl...
 CONSUMER SATISFACTIONIndira is 20 years old, a tribal woman at Kondegaon village in Bastardistrict. She is just back fro...
products, rural India offers an even bigger growth opportunity throughgreater penetration and then consumption. For exampl...
Taaza tea at Rs.5.OTHER MARKETING STRATEGIES:For decades now, Hindustan Lever has also taken initiatives tocircumvent the ...
AVAILABILITY OF UNILEVER’S PRODUCT:Generating awareness pays dividends only when steps are taken toensure constant availab...
system in rural areas for all its products. Given the number of brandsand their packs the rural retailer usually requires,...
UNILEVER DISTRIBUTION NETWORK                        MANUFACTURING UNITS ALL ACROSS INDIA C&F 1       C&F 2      C&F 3    ...
deliver the products to the retailers and customers.              MANUFACTURERSTAGE 1-                   C&FIn this stage ...
NATION WIDE MANUFACTURING:80 factories, across IndiaThe year was 1923. Lord Leverhulme, the legendary founder of LeverBrot...
company     has    consciously    responded      to   the      national    policy    ofdevelopment of backward areas by se...
How do you ensure that Mr. Ramesh in Kanyakumari gets his Lifebuoysoap and Mrs. Kulkarni in Jammu gets to know how Bru cof...
in-store                           sampling.IN THE VILLAGESUNILEVER has also revamped its sales organisation in the ruralm...
sites   and   stretching   right   upto   stockists.                                                       52
SHAKTI - CHANGING LIVES IN RURAL INDIAShakti is UNILEVERs rural initiative, which targets small villages withpopulation of...
standard of living in their families. In addition, it involves health andhygiene programmes, which help to improve the sta...
PIONEERING NEW CHANNELSHindustan Lever is simultaneously creating new channels, designed onthe same principle of holistic ...
leisure and travel segments. UNILEVERs allaince with Pepsi willsignificantly strengthen this channel.Health & Beauty Servi...
Major innovations have taken place, down the decades, in everycategory in which UNILEVER is present. From Home Care to Per...
storage as well as in the process of cooking. UNILEVER scientists havedeveloped a patented breakthrough technology to stab...
soap manufacturing also helped save costly conventional oils withoutany compromise on product performance and quality. The...
relief to the tsunami-hit people. The relief operations include,distribution of bread and biscuits to over 2000 families i...
UNILEVER is Indias largest Fast Moving Consumer Goods company,touching the lives of two out of three Indians. UNILEVER’s m...
Over the years, UNILEVER has opened schools for challenged childrenwith a sharper objective of supporting families of such...
self-reliant by earning through crafts learnt at the centre. Sinceinception, it has covered about 28 children.ANBAGAM:Yet ...
UNILEVER–            DECEMBER QUARTER 2005 RESULTS  •   Total Sales grow by 14.4%; FMCG Sales growth at 15.8%  •   HPC   a...
In Foods business, Tea achieved a modest growth despite a decliningmarket and falling commodity prices; Coffee continued t...
competitive categories of Laundry and Shampoo. This was driven byhigher investment behind our brands with exciting innovat...
personal care, with brands that help people feel good, look good andget more out of life.        UNILEVER TRANSFERS TEA ES...
With this disposal of shareholding in TEIL, UNILEVER has completed itsexit from its tea plantations business both in South...
COMPETITORSTHE PROCTER & GAMBLE COMPANY COMPANY PROFILEThe Procter & Gamble Company (P&G) is a brand behemoth. Theworlds #...
The section includes the overall research design, the samplingprocedure, the data collection method, the field method, and...
FUTURE SCOPEThe Indian FMCG market currently appears to be at a crossroads, andUNILEVER        are attempting to change cu...
landmark achievement comes in 74 years in India after clinching itsfirst overseas sale.FINDINGS, DATA ANALYSIS AND CONCLUS...
 In Ayurvedic Personal And Health Care they have Ayush.Foods    In tea they have the brand name brook bond and lipton.  ...
DEALERSWhile choosing the dealers UNILEVER mainly emphasizes on the‘market potential of that area, dealer’s financial posi...
Receipt Note (GRN) number and report of the whole items of deliveredproducts. Transportation cost is paid by P&G.In the en...
shriram general insurance
shriram general insurance
shriram general insurance
shriram general insurance
shriram general insurance
shriram general insurance
shriram general insurance
shriram general insurance
shriram general insurance
shriram general insurance
shriram general insurance
Upcoming SlideShare
Loading in...5
×

shriram general insurance

2,177

Published on

ddsdbcxklbcnnh nm

Published in: Business, Economy & Finance
1 Comment
2 Likes
Statistics
Notes
No Downloads
Views
Total Views
2,177
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
72
Comments
1
Likes
2
Embeds 0
No embeds

No notes for slide

shriram general insurance

  1. 1. RESEARCH REPORT ON “A STUDY A DISTRIBUTION CHANNEL OF UNILEAVER IN RURAL MARKET” Submitted In Partial Fulfillment for the Award Of Degree of MASTER OF BUSINESS ADMINISTRATION (U.P. Technical University, Lucknow) SUBMITTED TO: SUBMITTED BY- MR. J.N. GIRI SUNNY KUMAR (FACULTY, MIMT) Roll No. : 0615270112Mangalmay Institute of Management & Technology Website: www.mangalmay.org, E-Mail.: info@mangalmay.org, GREATER NOIDA
  2. 2. ACKNOWLEDGEMENT “Words express everything Mouth Co-ordinates, When it comes to gratitude, Heart comes to play.”There is always a sense of gratitude which one expresses to other people for theirhelpful and needy service they render during phases of life. I too would like to dothe same as I really wish to express my gratitude to those who have been helpful tome in getting this project completed.In representing this report I would like to express my gratitude to Mr. J.N.Giri.Center for management technology for providing me with his able guidance andinspiration for the completion of research reportI am also indebted to all the faculty members of center for managementtechnology for providing consistent encouragement and congenial atmosphere tocomplete the research report SUNNY KUMAR 2
  3. 3. TABLE OF CONTENTS INTRODUCTION COMPANY PROFILE PRESENT MARKET STRATEGY RESEARCH METHODOLOGY FINDINGS AND CONCLUSIONS SUGGESTIONS QUESTIONNAIRE LIMITATIONS BIBLIOGRAPHY ANNEXURE 3
  4. 4. EXECUTIVE SUMMARYUnilever is India’s largest Fast Moving Consumer Goods Company,touching the lives of two out of three Indians with over 20 distinctcategories in Home & Personal Care Products and Foods & Beverages.They endow the company with a scale of combined volumes of about 4million units and sales of Rs.10, 000 crores.UNILEVER is also one of the country’s largest exporters; it has beenrecognized as a Golden Super Star Trading House by the Governmentof India. Hence, research aims is that to study the existing marketingpractices, emerging marketing plans and understanding companiesbusiness strategy with its profile. The main recommendations havebeen made on the addressing of the advertising message to thecustomers. An attempt has been made to formulate thecommunication in a way to build it on a platform of the basic need forbuying UNILEVER products. In another recommendation thesuggestions towards better dealer interest in UNILEVER products hasbeen given a chance.The research is based primarily on primary data; however fewreferences to industry figures from secondary data have been made.Data has been collected through in depth interviews and administeredquestionnaires.The study has given the researchers an inside of the Consumerdurable Industry and an opportunity to use the theoretical knowledgein live project. 4
  5. 5. INTRODUCTIONHISTORYOver 100 years link with India. In the summer of 1888, visitors to theKolkata harbor & noticed crates full of Sunlight soap bars, embossedwith 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 and other famous brands likePears, Lux and Vim. Vanaspati was launched in 1918 and the famousDalda brand came to the market in 1937.In 1931, Unilever set up its first Indian subsidiary, HindustanVanaspati Manufacturing Company, followed by Lever Brothers IndiaLimited (1933) and United Traders Limited (1935). These threecompanies merged to form UNILEVER in November 1956; UNILEVERoffered 10% of its equity to the Indian public, being the first amongthe foreign subsidiaries to do so. Unilever now holds 51.55% equity inthe company. The rest of the shareholding is distributed among about380,000 individual shareholders and financial institutions.The erstwhile Brooke Bonds presence in India dates back to 1900. By1903, the company had launched Red Label tea in the country. In1912, Brooke Bond & Co. India Limited was formed. Brooke Bondjoined the Unilever fold in 1984 through an international acquisition. 5
  6. 6. The erstwhile Liptons links with India were forged in 1898. Unileveracquired Lipton in 1972, and in 1977 Lipton Tea (India) Limited wasincorporated.Ponds (India) Limited had been present in India since 1947. It joinedthe Unilever fold through an international acquisition of ChesebroughPonds USA in 1986.Since the very early years, UNILEVER has vigorously responded to thestimulus of economic growth. The growth process has beenaccompanied by judicious diversification, always in line with Indianopinions and aspirations.The liberalization of the Indian economy, started in 1991, clearlymarked an inflexion in UNILEVERs and the Groups growth curve.Removal of the regulatory framework allowed the company to exploreevery single product and opportunity segment, without any constraintson production capacity.Simultaneously, deregulation permitted alliances, acquisitions andmergers. In one of the most visible and talked about events of Indiascorporate history, the erstwhile Tata Oil Mills Company (TOMCO)merged with UNILEVER, effective from April 1, 1993. In 1995,UNILEVER and yet another Tata company, Lakme Limited, formed a50:50 joint venture, Lakme Lever Limited, to market Lakmes market-leading cosmetics and other appropriate products of both thecompanies. Subsequently in 1998, Lakme Limited sold its brands to 6
  7. 7. UNILEVER and divested its 50% stake in the joint venture to thecompany.UNILEVER formed a 50:50 joint venture with the US-based KimberlyClark Corporation in 1994, Kimberly-Clark Lever Ltd, which marketsHuggies Diapers and Kotex Sanitary Pads. UNILEVER has also set up asubsidiary in Nepal, Nepal Lever Limited (NLL), and its factoryrepresents the largest manufacturing investment in the Himalayankingdom. The NLL factory manufactures UNILEVERs products likeSoaps, Detergents and Personal Products both for the domestic marketand exports to India.The 1990s also witnessed a string of crucial mergers, acquisitions andalliances on the Foods and Beverages front. In 1992, the erstwhileBrooke Bond acquired Kothari General Foods, with significant interestsin Instant Coffee. In 1993, it acquired the Kissan business from the UBGroup and the Dollops Icecream business from Cadbury India.As a measure of backward integration, Tea Estates and Doom Dooma,two plantation companies of Unilever, were merged with Brooke Bond.Then in July 1993, Brooke Bond India and Lipton India merged to formBrooke Bond Lipton India Limited (BBLIL), enabling greater focus andensuring synergy in the traditional Beverages business. 1994witnessed BBLIL launching the Walls range of Frozen Desserts. By theend of the year, the company entered into a strategic alliance with theKwality Icecream Group families and in 1995 the Milkfood 100%Icecream marketing and distribution rights too were acquired. 7
  8. 8. Finally, BBLIL merged with UNILEVER, with effect from January 1,1996. The internal restructuring culminated in the merger of Ponds(India) Limited (PIL) with UNILEVER in 1998. The two companies hadsignificant overlaps in Personal Products, Specialty Chemicals andExports businesses, besides a common distribution system since 1993for Personal Products. The two also had a common management pooland a technology base. The amalgamation was done to ensure for theGroup, benefits from scale economies both in domestic and exportmarkets and enable it to fund investments required for aggressivelybuilding new categories.In January 2000, in a historic step, the government decided to award74 per cent equity in Modern Foods to UNILEVER, thereby beginningthe divestment of government equity in public sector undertakings(PSU) to private sector partners. UNILEVERs entry into Bread is astrategic extension of the companys wheat business. In 2002,UNILEVER acquired the governments remaining stake in ModernFoods.In 2003, UNILEVER acquired the Cooked Shrimp and PasteurisedCrabmeat business of the Amalgam Group of Companies, a leader invalue added Marine Products exports. 8
  9. 9. COMPANY PROFILEThe mission that inspires UNILEVERs 36,000 employees, includingover 1,350 managers, is to "add vitality to life." UNILEVER meetseveryday needs for nutrition, hygiene, and personal care with brandsthat help people feel good, look good and get more out of life. It is amission UNILEVER shares with its parent company, Unilever, whichholds 51.55% of the equity. The rest of the shareholding is distributedamong 380,000 individual shareholders and financial institutions.UNILEVERs brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair &Lovely, Ponds, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, BrookeBond, Kissan, Knorr-Annapurna, Kwality Walls – are household namesacross the country and span many categories - soaps, detergents,personal products, tea, coffee, branded staples, ice cream and culinaryproducts. They are manufactured in close to 80 factories. Theoperations involve over 2,000 suppliers and associates. UNILEVERsdistribution network, comprising about 7,000 redistribution stockists,directly covers the entire urban population, and about 250 million ruralconsumers.UNILEVER has traditionally been a company, which incorporates latesttechnology in all its operations. The Hindustan Lever Research Centre(HLRC) was set up in 1958, and now has facilities in Mumbai andBangalore. HLRC and the Global Technology Centres in India have over200 highly qualified scientists and technologists, many with post-doctoral experience acquired in the US and Europe. 9
  10. 10. UNILEVER believes that an organisations worth is also in the service itrenders to the community. UNILEVER is focusing on health & hygieneeducation, women empowerment, and water management. It is alsoinvolved in education and rehabilitation of special or underprivilegedchildren, care for the destitute and HIV-positive, and ruraldevelopment. UNILEVER has also responded in case of nationalcalamities / adversities and contributes through various welfaremeasures, most recent being the village built by UNILEVER inearthquake affected Gujarat, and relief & rehabilitation after theTsunami caused devastation in South India.Over the last three years the company has embarked on an ambitiousprogramme, Shakti. Through Shakti, UNILEVER is creating micro-enterprise opportunities for rural women, thereby improving theirlivelihood and the standard of living in rural communities. Shakti alsoincludes health and hygiene education through the Shakti VaniProgramme, and creating access to relevant information through theiShakti community portal. The programme now covers about 50,000villages in 12 states. UNILEVERs vision is to take this programme to100,000 villages impacting the lives of over a 100 million ruralIndians.UNILEVER is also running a rural health programme – LifebuoySwasthya Chetana. The programme endeavtheirs to induce adoption ofhygienic practices among rural Indians and aims to bring down theincidence of diarrhoea. It has already touched 70 million people in 10
  11. 11. approximately 15000 villages of 8 states. The vision is to make abillion Indians feel safe and secure. If Hindustan Lever straddles theIndian corporate world, it is because of being single-minded inidentifying itself with Indian aspirations and needs in every walk of life.UNILEVER INDIA’S LARGEST FMCG COMPANY 11
  12. 12. FINANCIAL OVERVIEW 12
  13. 13. Hindustan Lever Limited Shareholding Pattern Flls 13.7Domestic Fls 14.8 Unilever 51.6 Individual 19.9 UNILEVER Equity Capital - 50 Mn $ Market Capitalisation - 7,300 Mn $ 13
  14. 14. PRESENT MARKETING STRATEGY:Mission:Unilevermission is to add Vitality to life. We meet everyday needs for nutrition,hygiene, and personal care with brands that help people feel good, look goodand get more out of life.Policy:UNILEVER has earned a reputation for conducting its business with integrity andwith respect for the interests of those their activities can affect. This reputation isan asset, just as real as their people and brands.Their first priority is to be a successful business and that means investing forgrowth and balancing short-term and long-term interests. It also means caringabout their consumers, employees and shareholders, their business partners andthe world in which we live.From UNILEVER Spokesperson “To succeed requires the highest standards ofbehavior from all of us. The general principles contained in this Code set outthose standards. More detailed guidance tailored to the needs of differentcountries and companies will build on these principles as appropriate, but will notinclude any standards less rigorous than those contained in this Code.We want this Code to be more than a collection of high-sounding statements. Itmust have practical value in their day-to-day business and each one of us mustfollow these principles in the spirit as well as the letter”.ref: business worldmagazine. 14
  15. 15. Obeying the Law UNILEVER companies and employees are required to comply with the laws and regulations of the countries in which they operate. Employees • UNILEVER is committed to diversity in a working environment where there is mutual trust and respect and where everyone feels responsible for the performance and reputation of the company. UNILEVER will recruit, employ and promote employees on the sole basis of the qualifications and abilities needed for the work to be performed. • UNILEVER are committed to safe and healthy working conditions for all employees. We will not use any form of forced, compulsory or child labour. • UNILEVER are committed to working with employees to develop and enhance each individuals skills and capabilities. • UNILEVER respect the dignity of the individual and the right of employees to freedom of association. • UNILEVER will maintain good communications with employees through company based information and consultation procedures.ConsumersUNILEVER is committed to providing branded products and services whichconsistently offer value in terms of price and quality, and which are safe for theirintended use. Products and services will be accurately and properly labelled,advertised and communicated. 15
  16. 16. ShareholdersUNILEVER will conduct its operations in accordance with internationallyaccepted principles of good corporate governance. They will provide timely,regular and reliable information on their activities, structure, financial situationand performance to all shareholders.Business PartnersUNILEVER is committed to establishing mutually beneficial relations with theirsuppliers, customers and business partners.In their business dealings they expect their partners to adhere to businessprinciples consistent with their own.Community InvolvementUNILEVER strives to be a trusted corporate citizen and, as an integral part ofsociety, to fulfill their responsibilities to the societies and communities in whichthey operate.Public ActivitiesUNILEVER companies are encouraged to promote and defend their legitimatebusiness interests. UNILEVER will co-operate with governments and otherorganisations, both directly and through bodies such as trade associations, in thedevelopment of proposed legislation and other regulations which may affectlegitimate business interests. 16
  17. 17. UNILEVER neither supports political parties nor contributes to the funds ofgroups whose activities are calculated to promote party interests.The EnvironmentUNILEVER is committed to making continuous improvements in themanagement of their environmental impact and to the longer-term goal ofdeveloping a sustainable business.UNILEVER will work in partnership with others to promote environmental care,increase understanding of environmental issues and disseminate good practice.InnovationIn their scientific innovation to meet consumer needs they will respect theconcerns of their consumers and of society. They will work on the basis of soundscience, applying rigorous standards of product safety.CompetitionUNILEVER believes in vigorous yet fair competition and supports thedevelopment of appropriate competition laws. Their companies and employeeswill conduct their operations in accordance with the principles of fair competitionand all applicable regulations.Business IntegrityUNILEVER does not give or receive, whether directly or indirectly, bribes or otherimproper advantages for business or financial gain. No employee may offer, giveor receive any gift or payment which is, or may be construed as being, a bribe.Any demand for, or offer of, a bribe must be rejected immediately and reported tomanagement. 17
  18. 18. UNILEVER accounting records and supporting documents must accuratelydescribe and reflect the nature of the underlying transactions. No undisclosed orunrecorded account, fund or asset will be established or maintained.Conflicts of InterestsAll UNILEVER employees are expected to avoid personal activities and financialinterests which could conflict with their responsibilities to the company.UNILEVER employees must not seek gain for themselves or others throughmisuse of their positions.Compliance – Monitoring – ReportingCompliance with these principles is an essential element in their businesssuccess. The Unilever Board is responsible for ensuring these principles arecommunicated to, and understood and observed by, all employees.Day-to-day responsibility is delegated to the senior management of the regionsand operating companies. They are responsible for implementing theseprinciples, if necessary through more detailed guidance tailored to local needs.Assurance of compliance is given and monitored each year. Compliance with theCode is subject to review by the Board supported by the Audit Committee of theBoard and the Corporate Risk Committee. 18
  19. 19. Any breaches of the Code must be reported in accordance with the proceduresspecified by the Joint Secretaries. The Board of Unilever will not criticisemanagement for any loss of business resulting from adherence to theseprinciples and other mandatory policies and instructions.The Board of Unilever expects employees to bring to their attention, or to that ofsenior management, any breach or suspected breach of these principles.Provision has been made for employees to be able to report in confidence andno employee will suffer as a consequence of doing so.In this Code the expressions Unilever and Unilever companies are used forconvenience and mean the Unilever Group of companies comprising UnileverN.V., Unilever PLC and their respective subsidiary companies. The Board ofUnilever means the Directors of Unilever N.V. and Unilever PLC’.ref:THE NEWSENVOIRMENT POLICYUnileversupplies high quality goods and services to meet the daily needs ofconsumers and industry. In doing so, the Company is committed to exhibit thehighest standards of corporate behaviour towards its consumers, employees, thesocieties and the world in which we live.The company recognises its joint responsibility with the Government and thePublic to protect environment and is committed to regulate all its activities so asto follow best practicable means for minimising adverse environmental impactarising out of its operations. 19
  20. 20. The company is committed to making its products environmentally acceptable,on a scientifically established basis, while fulfilling consumers requirements forexcellent quality, performance and safety.The aim of the Policy is to do all that is reasonably practicable to prevent orminimise, encompassing all available knowledge and information, the risk of anadverse environmental impact arising from processing of the product, its use orforeseeable misuse.This Policy document reflects the continuing commitment of the Board for soundEnvironment Management of its operations. The Policy applies to development ofa process, product and services, from research to full-scale operation. It isapplicable to all company operations covering its plantations, manufacturing,sales and distribution, research & innovation centres and offices. This documentdefines the aims and scope of the Policy as well as responsibilities for theachievement of the objectives laid down. VISIONTheir vision is to continue to be an environmentally responsible organisationmaking continuous improvements in the management of the environmentalimpact of their operations. 20
  21. 21. UNILEVER will achieve this through an Integrated Environment Managementapproach, which focuses on People, Technology and Facilities, supported byManagement Commitment as the prime driver. FMCG Markets Slowdown in growth & then 2 years of decline 21
  22. 22. FMCG Market (HLL Categories) Growth% 00 01 02 03 8 6 4 6.7 2 3.4 0 -1.1 -2.5 -2 -4Pricing action in 2007: 22
  23. 23. Price reductionPrice reduction (Bottles) & Value improvement (Sachets) 23
  24. 24. Investment Behind BrandsInnovation & Superior QualityFamily – safe Petalsoft Water & effort saving Quick wash - 50% No mud RinAdvance from germs 24
  25. 25. Perfect Radiance “5 in 1” hair Total Care Whiter teeth Fresher breath health benefitsCurrent Market ContextActions• Pricing –Laundry : Price Reduction –Shampoos: Value Improvement & Lower Price Points –Toothpaste: Value Corrections & SKU rationalization• Investments behind brands – Innovations – Quality – Higher A&P• Corrective actions in processed 25
  26. 26. Processed Foods • Corrective actions – Phased stock reduction – Withdrawl of ‘03 innovation – Defocus of Atta in unviable geographies • Sales decline of 26% arising from above actions • Market shares held / improved BRANDSSales Growth% 26
  27. 27. PRODUCTSLux BreezeLifebuoy DoveLiril PearsHamam RexonaSurf Excel Fair & LovelyRin PondsWheelSunsilk Naturals PepsodentClinic Close-upAxe Lakme 27
  28. 28. Rexona Ayush Brooke Bond Bru Lipton Kissan Kwality Walls Knorr AnnapurnaINDIAS LARGEST BRANDED FMCG EXPORTERIt was 1962. The reality of India then was very different from what it is today.Indias economy then suffered from foreign exchange shortage. HindustanLever voluntarily decided to take up Exports to support the countrys economy.Today, UNILEVER is Indias largest exporter of branded Fast Moving ConsumerGoods. It has been recognized by the Government of India as a Golden SuperStar Trading House.Over time, UNILEVER has developed appropriate capabilities to be globallycompetitive in cost and quality for a viable Exports business.FOCUS AREASUNILEVERs Exports focuses on two broad areas. It is a sourcing base forUnilever brands in Home & Personal Care (HPC) and Tea for supplies to otherUnilever companies. It also focuses on becoming a preferred supplier to bothnon-Unilever and Unilever clients in three categories in which India, as a 28
  29. 29. country, has competitive advantage - Marine Products, Castor and itsDerivatives and Rice. UNILEVER enjoys international recognition within Unileverand outside for its quality, reliability and speed of customer service.UNILEVERs Exports geography comprises, at present, countries in Asia,Australia, Africa, North America and Europe.UNILEVERS EXPORTS PORTFOLIOHPC:The categories are soaps, skin care products and oral care products. The brandsare Lux, Lifebuoy, Pears, Fair & Lovely, Dove, Vaseline, Close-Up, Pepsodent,Signal. UNILEVER is the only source of Pears soap across the world.Tea:The categories are branded packet tea, and instant tea for Unilevers ready-to-drink tea business. The branded teas are Brooke Bond, Brooke Bond Red label,Brooke Bond Taj Mahal, Lipton, Lipton Yellow Label, Lipton Green Label, LiptonBrisk, Lipton 3-in-1 premix, Chinese Rickshaw.Marine Products:UNILEVER offers a comprehensive portfolio, ranging from Surimi, Crabsticks toShrimps and several value-added products. Among its customers is Icelandic,the worlds third largest seafood company. In addition, UNILEVER has alsobecome a part of Unilevers supply chain in seafoods for Europe too.UNILEVERs Marine Products brands are Ocean Diamond, Ocean Excellence,Shogun, Hima, Gold Seal, Tara and Prima. Rice:The categories are Basmati Rice and Basmati Rice-based ready-to-eat rice 29
  30. 30. meals. The brands are Gold Seal Indus Valley, Rozana and Annapurna. Castor:The categories are Castor Oil, Castor-oil based products, like hydrogenatedcastor oil, 12 - Hydroxy Stearic Acid, Ricinoleic Acid (used in grease andlubricant industry, paints and surface coatings, cosmetics, emulsifiers), andSpeciality Castor Oils (USP grade, BP grade, DAB 10) etc used inpharmaceutical preparations. UNILEVERs Castor brand is Topsol.Today, Exports is a substantial business in UNILEVER, accounting for about12% of the companys turnover. UNILEVER believes that its competitiveadvantages of cost competitiveness, process competitiveness and economies ofscale both at the company and country level, hold it in good stead. Theyposition the company to become one of the hubs for sourcing by Unilevercompanies in HPC and Tea, and also simultaneously become a preferred partnerto global customers in Marine Products, Castor and Rice.DIRECT SELLING:Product Range• Lever home range• Male grooming• Oral Care• Ayurveda• Personal Wash• FoodsReach - 1400 towns (Largest in India)Consultant base - 330,000 30
  31. 31. ACCORDINGLY, UNILEVERS AIMS ARE TO:  Ensure safety of its products and operations for the environment by using standards of environmental safety, which are scientifically sustainable and commonly acceptable.  Develop, introduce and maintain environmental management systems across the company to meet the company standards as well as statutory requirements for environment. Verify compliance with these standards through regular auditing.  Assess environmental impact of all its activities and set annual improvement objectives and targets and review these to ensure that these are being met at the individual unit and corporate levels. 31
  32. 32.  Reduce Waste, conserve Energy and explore opportunities for reuse and recycle. Involve all employees in the implementation of this Policy and provide appropriate training. Provide for dissemination of information to employees on environmental objectives and performance through suitable communication networks. Enctheirage suppliers and co-packers to develop and employ environmentally superior processes and ingredients and co- operate with other members of the supply chain to improve overall environmental performance.  Work in partnership with external bodies and Government agencies to promote environmental care, increase understanding of environmental issues and disseminate good practice. RESPONSIBILITIES CORPORATE The Board and the Management Committee of UNILEVER is committed to conduct the company operations in an environmentally sound manner. The Management Committee will: Set mandatory standards and establish environmental improvement objectives and targets for UNILEVER as a whole and for individual units, and ensure these are included in the annual operating plans. 32
  33. 33.  Formally review environment performance of the company once every quarter.  Review environment performance when visiting units and recognise exemplary performance.Nominate:- A senior line manager responsible for environmental performance atthe individual UNILEVER site.- UNILEVER environmental coordinator.  The Management Committee, through the nominated environmental coordinator will:  Ensure implementation of UNILEVER Policy on environment and compliance with Unilever and UNILEVER environmental standards and the standards stipulated under relevant national / local legislation. When believed to be appropriate, apply more stringent criteria than those required by law.  Assess environmental impact of UNILEVER operations and establish strategies for sound environment management and key implementation steps.  Enctheirage development of inherently safer and cleaner manufacturing processes to further raise the standards of environment performance.  Establish appropriate management systems for environment management and ensure regular auditing to verify compliance. 33
  34. 34.  Establish systems for appropriate training in implementation of Environment Management Systems at work. Ensure that all employees are made aware of individual and collective responsibilities towards environment. Arrange for expert advice on all aspects of environment management. Participate, wherever possible, with appropriate industry and Government bodies advising on environmental legislation and interact with national and local authorities concerned with protection of environment. 34
  35. 35. INDIVIDUAL UNITS  The overall responsibility for environment management at each unit will rest with the Unit Head, who will ensure implementation of UNILEVER Policy on environment at unit level. Concerned line managers / heads of departments are responsible for environmental performance at department levels.  In order to fulfill the requirements of the Environment Policy at each site, the Unit Head will:  Designate a unit environment coordinator who will be responsible for co-ordinating environmental activities at unit, collating environmental statistics and providing / arranging for expert advice.  Agree with the Management Committee Member responsible for the unit, specific environmental improvement objectives and targets for the unit and ensure that these are incorporated in the annual objectives of the concerned managers and officers and are reviewed periodically.  Ensure that the unit complies with Unilever and UNILEVER mandatory standards and the relevant national and state regulations with respect to environment.  Ensure formal environmental risk assessment to identify associated environmental aspects and take appropriate steps to control risks at acceptable levels.  Ensure that all new operations are subjected to a systematic and formal analysis to assess environmental impact. Findings of such 35
  36. 36. exercises should be implemented prior to commencement of the activity. Manage change in People, Technology and Facilities through a planned approach based on training, risk assessment, pre- commissioning audits and adherence to design codes. Regularly review environment performance of the unit against set objectives and targets and strive for continual improvement. Sustain a high degree of environmental awareness through regular promotional campaigns and employee participation through training, safety committees, emergency drills etc. Ensure dissemination of relevant information on environment within the unit and to outside bodies, and regularly interact with Government authorities concerned for protection of environment. Maintain appropriate emergency procedures consistent with available technologies to prevent / control environmental incidents. Provide appropriate training to all employees. Ensure periodic audits to verify compliance with environment management systems and personally carry out sample environment audits to check efficacy of the systems. Report environmental statistics to UNILEVER Corporate Safety & Environment Group on a monthly basis. 36
  37. 37. RESEARCH AND INNOVATION CENTRESSince most new products and processes are developed in these Units,certain additionalresponsibilities devolve on them to ensure implementation of theEnvironment Policy of the company. In addition to the Unit Headsresponsibilities outlined above, the heads of these units will:  Ensure that a formal and systematic risk assessment exercise is undertaken during the process/product development stage with specific reference to environmental impact.  Transfer technology to the pilot plant and main production through a properly documented process specification which will clearly define environmental impact and risks associated with processes, products, raw material and finished product handling, transport and storage.  Ensure that treatment techniques are developed for any wastes generated as a result of the new product/process and is incorporated into the process specifications.QUALITY POLICY:Unileverconsiders quality as one of the principal strategic objectives toguarantee its growth and leadership in the markets in which itoperates.The company is committed to respond creatively and competitively tothe changing needs and aspirations of their consumers throughrelentless pursuit of technological excellence, innovation and qualitymanagement across their businesses, and offer superior quality 37
  38. 38. products and services that are appropriate to the various price pointsin the market as well as to their commitment to building shareholdervalue.The company recognises that its employees are the primary stheirce ofsuccess in its operations and is committed to training and providingthem the necessary tools and techniques as well as empowering themto ensure broad base compliance of this policy in the organisation at alllevels.The company is committed to fulfill its legal and statutory obligationsand international standards of product safety and hygiene and will notknowingly sell product that is harmful to consumers or theirbelongings. It will institute systems and measures to monitorcompliance in order to meet its responsibilities to consumers.The company will maintain an open communication channel with itsconsumers and customers and will carefully monitor the feedback tocontinuously improve its products and services and set qualitystandards to fulfill them. The company is committed to extend itsquality standards to its contract manufacturers, key suppliers andservice providers and by entering into alliances with them, to jointlyimprove the quality of its products and services. This policy isapplicable to production from its own facilities as well as to productionthat is outsourced.The company will periodically review this quality policy for itseffectiveness and consistency with business objectives.The company delegates authority and responsibility for disseminationand implementation of this policy to each Business and Unit Head. 38
  39. 39. SAFETY AND HEALTH POLICYUnileversupplies high quality goods and services to meet the dailyneeds of consumers and customers. In doing so, the Company iscommitted to exhibit the highest standards of corporate behaviortowards its consumers, employees, the societies and the environmentin which we operate.Towards this, the Company recognizes its responsibility to ensuresafety and protection of health of its employees, contractors andvisitors in all its operating sites, which include manufacturing, salesand distribution, research laboratories and offices during work andwork related travel.This Policy document defines the vision, principles, aim, requiredactions and scope of the policy application as well as the responsibilityfor execution. Vision "Their vision is to be an injury free organization."UNILEVER NEWS:”We will bring safety on top of mind for allemployees and will integrate it with all business processes. We willrealize their Vision through an Integrated Safety Managementapproach, which focuses on People, Processes, Systems, Technologyand Facilities, supported by demonstrated leadership and employeecommitment at all levels as the prime drivers for ensuring a safe andhealthy work environment”. 39
  40. 40. SAFETY PRINCIPLES:UNILEVERs Occupational Safety and Health Policy is based on andsupported by the following eight Principles.These Principles have the same status as the Companys Code ofBusiness Principles:  All injuries and occupational illnesses are preventable  All operational exposures can be safeguarded  Safety evaluation of all business processes is vital  Working safely is a condition of employment  Training all employees to work safely is essential  Management audits are a must  Employee involvement is essential  All deficiencies must be reported and corrected promptly In order to facilitate operationalisation of the Safety Principles, a separate document has been prepared, which covers: a) Safety Principles b) Success Criteria c) Illustrative KPI 40
  41. 41.  CONSUMER SATISFACTIONIndira is 20 years old, a tribal woman at Kondegaon village in Bastardistrict. She is just back from the nearby jungles, collecting firewood.After attending to her baby son, she will go to the village well to take aquick wash. Yesterday her husband brought her a white soap, with pinkpetals in it. Indira had requested him to buy one, for the festival laterthis evening.Indira is among millions of consumers in rural India who use HindustanLevers products. She came to know about Lux through the TV set at thecommunity centre. It is not very costly, and also available nearby.Home to over 700 million people, rural India comprises not only over70% of Indias billion-strong population, but also over 12% of theworlds population. The rural population already accounts for substantialconsumption of Fast Moving Consumer Goods and also consumerdurables. About 50% of the sales of soaps & detergents are generatedin rural India. Similarly, almost half the demand for black & whitetelevision sets, pressure cookers, table fans, sewing machines alsocomes from there.COST MANAGEMENT:But the potential is even larger, both in terms of consumption andpenetration. The fact that 70% of the population accounts for only 50%of even relatively well-penetrated categories, like soaps & detergents,indicates the enormous scope of consumption-led growth in thesecategories. Therefore such categories will derive growth out of increasedusage. In categories, which are relatively less penetrated, like personal 41
  42. 42. products, rural India offers an even bigger growth opportunity throughgreater penetration and then consumption. For example only three outof 10 consumers in rural markets use shampoo or skin care products.Therefore growth in such categories will emerge, as more consumerspurchase these products, and then continue to use them regularly.Hindustan Lever has taken many initiatives over the decades to createmarkets in the rural hinterlands. By marketing relevant products, ataffordable prices.A unique example is Hindustan Levers Lifebuoy soap. In rural India,health is of paramount importance, because indisposition is very directlyrelated to loss of income. Lifebuoy, whose core equity is health andhygiene , has for decades now been synonymous with soap in ruralIndia.At the same time, if products have to come up the order in the ruralpurchase hierarchy, they have to be affordable. If rural India todayaccounts for about half of detergents sales, it is because UNILEVER hasdeveloped low-cost value-for-money branded products, like Wheel. Thecompany has also taken initiatives to create markets even forapparently premium products, by offering them in pack sizes, likesachets, whose unit prices are within the reach of rural consumers. Forexample, initiated in the 1980s, sachets (Rs.2, Re.1, or 50 paise) todayconstitute about 55% of Hindustan Levers shampoo sales. With mediareach gradually increasing, rural consumers today, where the media hasits footprints, share the same aspirations with their urban counterparts.UNILEVER has responded to the trend with low unit price packs of evenother products - Lux at Rs.5, Lifebuoy at Rs.2, Surf Excel sachet atRs.1.50, Ponds Talc at Rs.5, Pepsodent toothpaste at Rs. 5, Fair &Lovely Skin Cream at Rs.5, Ponds Cold Cream at Rs.5, Brooke Bond 42
  43. 43. Taaza tea at Rs.5.OTHER MARKETING STRATEGIES:For decades now, Hindustan Lever has also taken initiatives tocircumvent the limitation in communication channels, by innovativelyleveraging non-conventional media. Among them are wall paintings,cinema vans, weekly markets (haat), fairs and festivals. Given the ruralconsumers fascination for cinema, the cinema vans show popularmovies, interspersed with products advertisements. Weekly markets,fairs and festivals are parts and parcel of rural life. They give anopportunity to address consumers, spread over many tiny hamlets, atone location. The occasions are used to demonstrate product benefitsand also sell such products. Such demonstrations have played asignificant role in creating, for example, the detergents market in ruralIndia. In recent times, such demonstrations are being deployed toillustrate how visible clean is not hygienic clean, and how using soap isessential to prevent easily avoidable infections.Communication through fairs and festivals are backed by directconsumer contact. For example, in 1998-99, Hindustan Leverimplemented a major direct consumer contact, called Project Bharat,which covered 2.2 crore homes. Each home was given a box, at aspecial price of Rs.15, comprising a low unit price pack of shampoo,talcum powder, toothpaste and skin cream, along with educationalleaflets and audio-visual demonstrations. The project has helpedeliminate barriers to trial, and has strengthened salience of bothparticular categories and brands. Similarly in 2002, Hindustan Lever haslaunched a similar large-scale direct contact, called Lifebuoy SwasthyaChetana, which already covers 70 million people in 18,000 villages of 8states. The project is intended at generating awareness about goodhealth and hygiene practices, and specifically how a simple habit ofwashing hands is essential to maintaining good health. The initiative willinvolve interaction with students and senior citizens, who act as changeagents. 43
  44. 44. AVAILABILITY OF UNILEVER’S PRODUCT:Generating awareness pays dividends only when steps are taken toensure constant availability of products. In rural India particularly,availability determines volumes and market share, because theconsumer usually purchases what is available at the outlet, influencedvery largely by the retailer.Therefore, over the decades, Hindustan Lever has progressivelystrengthened its distribution reach in rural India, which today has about33 lakh outlets. Direct rural distribution in Hindustan Lever began withthe coverage of villages adjacent to small towns. The companysstockists in these towns were made to use their infrastructure todistribute products to outlets in these villages. But this distributionmode could only be extended to villages connected with motorableroads, and it could cover about 25% of the rural population by 1995.Therefore in 1998, Hindustan Lever launched Project Streamline tofurther extend its distribution reach. Under this initiative, the companyidentifies sub-stockists in a large village, connected by motorable roadto a small town. This sub-stockist in turn distributes the companysproducts to outlets in adjacent smaller villages using transportationsuitable to interconnecting roads, like cycles, scooters or the age-oldbullock cart. Hindustan Lever is thus trying to circumvent the barrier ofmotorable roads. As a result, the distribution network, as of now,directly covers about 50,000 villages, reaching about 250 millionconsumers. The company simultaneously uses the wholesale channel,suitably incentivising them to distribute company products.UNILEVER has in the recent past established a common distribution 44
  45. 45. system in rural areas for all its products. Given the number of brandsand their packs the rural retailer usually requires, one UNILEVERrepresentative can take all the products from the company portfolio thathe needs. This common distribution system is now fully operational,under one Regional Sales Manager exclusively dedicated to ruralmarkets of each region of the country.Over time, Hindustan Lever will further strengthen its rural distributionthrough mutually beneficial alliances with rural Self Help Groups (SHGs).Over the last five years, financial institutions, NGOs and governmentorganisations are working closely to establish SHGs, whose objective isto alleviate poverty through sustainable income-generating activities.Since 2001, Hindustan Lever is implementing Project Shakti, wherebySHGs are being offered the option of distributing relevant products ofthe company as a sustainable income-generating activity. The modelhinges on a powerful win-win relationship; the SHG engages in anactivity which brings sustainable income, while Hindustan Lever gets aninterface to interact and transact with the rural consumer. UNILEVERsvision for Project Shakti is to scale it up across the country by 2005,creating about 25000 Shakti entrepreneurs, covering 100,000 villages,and touching the lives of 100 million rural consumers. Begun with 50groups in Nalgonda district of Andhra Pradesh, with the support of localauthorities, the project has been extended, as of now, to about 50,000villages in 12 states. A typical Shakti entrepreneur conducts business ofaround Rs.10,000 - Rs 15,000 per month, which gives her an income ofabout Rs 700 - Rs.1000 per month on a sustainable basis. As most ofthese women are from below the poverty line, and live in extremelysmall villages (less than 2000 population), this earning is verysignificant, and is almost double of their past household income. The fullbenefit of Project Shakti will be realised after some years. 45
  46. 46. UNILEVER DISTRIBUTION NETWORK MANUFACTURING UNITS ALL ACROSS INDIA C&F 1 C&F 2 C&F 3 C&F 4 C&F 5 C&F 6 C&F 7 STOCKISTS STOCKISTS STOCKISTS STOCKISTS STOCKISTS STOCKISTSSTOCKISTS WHOLESALERS RETAILERS CUSTOMERSThis is the whole Distribution Chain of UNILEVER to cover the Ruralmarket. The company have remarkably worked upon to make thesupply chain from manufacturers to retailers simple with very fewnumber of mediators and jobbers. It has helped them to maintain thetransparency in the cycle and also have let them established a promptdelivery process. The products are manufactured in the factories allacross India and then is supplied from there to the various Carriage andForwarding (C&F) units which are 5-10 per state depending on the areathey have to cover and are established by the company. These C&Funits then supply the products to the various Wholesalers confined totheir area only and according to the wholesalers demand. Thewholesalers then supply the products to the semi-wholesalers and theretailers as per the volume of their order. Then the semi-wholesalers 46
  47. 47. deliver the products to the retailers and customers. MANUFACTURERSTAGE 1- C&FIn this stage the products reach to the Carriage and Forwarding unitfrom various manufacturing units established all across India. Thevolume of the delivery depends upon the quantity required/ordered bythe C&F unit. The depot sends the request of the volume of the productsto the Head Office, which then order the various factories to supply theproducts to the mentioned depot. The supply is met within a week.UNILEVER has 45 C&F’s with 7000 stockists and 2000+ suppliers andassociates to target the market. C&FSTAGE 2- WHOLESALERSThe C&F then supplies the products according to the demand of variouswholesalers. Each of the depot cover a region assigned to them.Each C&F acquires 5-7 trucks and hire 4-5 more trucks to supplyproducts everyday.They work on the concept of advance payment by DD by thewholesalers and deposit them in the bank which is transferred to thehead office. 47
  48. 48. NATION WIDE MANUFACTURING:80 factories, across IndiaThe year was 1923. Lord Leverhulme, the legendary founder of LeverBrothers, was visiting India. The nationalist sentiment in India was forlocally manufactured products. Lord Leverhulme, who believed thatwhat is good for a country is equally good for the company, respondedto that aspiration because he too shared that dream.His dream ultimately was realised in 1934. In September 1934, aftermore than a decade of discussions in London and in India, a Leverfactory was allowed to sprout on the land that had been reclaimed bythe Bombay Port Trust at Sewri. From here, a month later rolled out thefirst cake of Sunlight soap to be manufactured in India. The same year,Lever Brothers took over the Garden Reach Factory in Kolkata.These two factories were the first in a manufacturing base, which todayliterally dots the length and breadth of India. From Assam to Gujarat,from Uttaranchal to Kerala.Hindustan Levers diverse product range is today manufactured in about80 factories. In addition, the company outsources from 150 other units.The operations involve 2,000 suppliers and associates.DEVELOPING BACKWARD AREASSeveral UNILEVER factories are situated in backward areas. The 48
  49. 49. company has consciously responded to the national policy ofdevelopment of backward areas by setting up manufacturing units inthese places, which provide several direct and indirect employmentopportunities for these areas, and leads to general economicdevelopment of these regions through industrialisation. In fact, all majorinvestments of UNILEVER, in recent years, have been either in A-Category backward areas or No-Industry Districts. These includefactories in Khamgaon and Yavatmal (Maharashtra), Chhindwara(Madhya Pradesh), Orai, Sumerpur and Khalilabad (Uttar Pradesh),Haldia (West Bengal), Silvassa (Dadra & Nagar Haveli), Pondicherry,Goa, Doom Dooma (Assam), Haridwar (Uttaranchal) and Barotiwala(Himachal Pradesh). Since 2001 itself, UNILEVER has set up nine newfactories in backward areas.Equally, UNILEVER has an enviable track record in taking over sickenterprises, in response to requests from Government, and convertingthem into viable operations. The companys units at Mangalore andRajpura all bear testimony to this achievement. In the process,UNILEVER has saved precious jobs and developed local economies.UNILEVERs manufacturing facilities, like the Khamgaon soap plant andthe Sumerpur detergent bar unit, are recognised as among the best inthe Unilever world.UNILEVER has adopted Total Productive Maintenance (TPM) forachieving manufacturing excellence since 1994. As on date, TPM is indifferent stages of implementation in 28 factories. Four UNILEVERfactories have already received the TPM Consistency Award, and 14factories have been awarded with the TPM Excellence Award.MARKETING NEEDS EVERY WHERE 49
  50. 50. How do you ensure that Mr. Ramesh in Kanyakumari gets his Lifebuoysoap and Mrs. Kulkarni in Jammu gets to know how Bru coffee tasteseven before she has bought it? Well, you need to have a cutting edgedistribution network in place.Hindustan Levers distribution network is recognised as one of its keystrengths. Its focus is not only to enable easy access to our brands,but also to touch consumers with a three-way convergence - ofproduct availability, brand communication, and higher levels of brandexperience.UNILEVERs products, manufactured across the country, aredistributed through a network of about 7,000 redistribution stockistscovering about one million retail outlets. The distribution networkdirectly covers the entire urban population.The general trade comprises grocery stores, chemists, wholesale,kiosks and general stores. Hindustan Lever services each with a tailor-made mix of services. The emphasis is equally on using stores fordirect contact with consumers, as much as is possible through in-storefacilitators.AT THE SUPERMARKETSSelf-service stores and supermarkets are fast emerging in metros andlarge towns. To service modern retailing outlets in the metros,UNILEVER has set up a full-scale sales organisation, exclusively for thischannel. The business system delivers excellent customer service,while driving growth for the company and the store. At the same time,innovative marketing initiatives are taken to provide consumers withexperience of our brands at the store itself, through product tests and 50
  51. 51. in-store sampling.IN THE VILLAGESUNILEVER has also revamped its sales organisation in the ruralmarkets to fully meet the emerging needs and increased purchasingpower of the rural population. The company has brought all marketswith populations of below 50,000 under one rural sales organisation.The team comprises an exclusive sales force and exclusiveredistribution stockists, under the charge of dedicated managers. Theteam focuses on building superior availability, while enabling brandbuilding in the deepest interiors. UNILEVERs distribution network inrural India already directly covers about 50,000 villages, reachingabout 250 million consumers, through about 6000 sub-stockists.HARNESSING INFORMATION TECHNOLOGYAn IT-powered system has been implemented to supply stocks toredistribution stockists on a continuous replenishment basis. Theobjective is to catalyse UNILEVERs growth by ensuring that the rightproduct is available at the right place in right quantities, in the mostcost-effective manner. For this, stockists have been connected withthe company through an Internet-based network, called RSNet, foronline interaction on orders, despatches, information sharing andmonitoring. RS Net covers about 80% of the companys turnover.Today, the sales system gets to know every day what UNILEVERstockists have sold to almost a million outlets across the country. RSNet is part of Project Leap, UNILEVERs end-to-end supply chain, whichalso includes a back-end system connecting suppliers, all company 51
  52. 52. sites and stretching right upto stockists. 52
  53. 53. SHAKTI - CHANGING LIVES IN RURAL INDIAShakti is UNILEVERs rural initiative, which targets small villages withpopulation of less than 2000 people or less. It seeks to empowerunderprivileged rural women by providing income-generatingopportunities, health and hygiene education through the Shakti Vaniprogramme, and creating access to relevant information through theiShakti community portal.In general, rural women in India are underprivileged and need asustainable source of income. NGOs, governmental bodies and otherinstitutions have been working to improve the status of rural women.Shakti is a pioneering effort in creating livelihoods for rural women,organised in Self-Help Groups (SHGs), and improving living standardsin rural India. Shakti provides critically needed additional income tothese women and their families, by equipping and training them tobecome an extended arm of the companys operation.Started in 2001, Shakti has already been extended to about 80,000villages in 15 states - Andhra Pradesh, Karnataka, Tamilnadu,Maharashtra, Gujarat, Madhya Pradesh, Chattisgarh, Uttar Pradesh,Rajasthan, Punjab, Haryana, West Bengal, Orissa, Bihar & Jharkhand.The respective state governments and several NGOs are activelyinvolved in the initiative.Shakti already has about 25,000 women entrepreneurs in its fold. Atypical Shakti entrepreneur earns a sustainable income of aboutRs.700 -Rs.1,000 per month, which is double their average householdincome. Shakti is thus creating opportunities for rural women to live inimproved conditions and with dignity, while improving the overall 53
  54. 54. standard of living in their families. In addition, it involves health andhygiene programmes, which help to improve the standard of living ofthe rural community. Shaktis ambit already covers about 15 millionrural population. Plans are also being drawn up to bring in partnersinvolved in agriculture, health, insurance and education to catalyzeoverall rural development.UNILEVERs vision for Shakti is to scale it up across the country,covering 100,000 villages and touching the lives of 100 million ruralconsumers by 2005.Shakti Vani is a social communication programme. Women, trained inhealth and hygiene issues, address village communities throughmeetings at schools, village baithaks, SHG meetings and other socialfora. In 204, Shakti Vani has covered 10,000 villages in MadhyaPradesh, Chattisgarh and Karnataka. The vision is to cover 80,000villages in 2005.iShakti, the Internet-based rural information service, has beenlaunched in Andhra Pradesh, in association with the Andhra PradeshGovernments Rajiv Internet Village Programme. The service is nowavailable in Nalgonda, Vishakapatnam, West Godavari and EastGodavari districts. iShakti has been developed to provide informationand services to meet rural needs in medical health and hygiene,agriculture, animal husbandry, education, vocational training andemployment and womens empowerment. The vision is to have 3,500kiosks across the state by 2005. 54
  55. 55. PIONEERING NEW CHANNELSHindustan Lever is simultaneously creating new channels, designed onthe same principle of holistic contact with consumers.Project Shakti, UNILEVERs partnership with Self Help Groups of ruralwomen, is becoming an extended arm of the companys operation inrural hinterlands. Started in 2001, Project Shakti has already beenextended to about 50,000 villages in 12 states - Andhra Pradesh,Karnataka, Gujarat, Madhya Pradesh, Tamil Nadu, Chattisgarh, UttarPradesh, Orissa, Punjab, Rajasthan, Maharashtra and West Bengal.The respective state governments and several NGOs are activelyinvolved in the initiative. The SHGs have chosen to partner withUNILEVER as a business venture, armed with training from UNILEVERand support from government agencies concerned and NGOs.Hindustan Lever Network (HLN) is the companys arm in the DirectSelling channel, one of the fastest growing in India today. It alreadyhas about 3.5 lakh consultants - all independent entrepreneurs,trained and guided by HLNs expert managers. HLN has already spreadto over 1500 towns and cities, covering 80% of the urban population,backed by 42 offices and 240 service centres across the country. Itpresents a range of customised offerings in Home & Personal Care andFoods.Out-of-Home consumption of products and services is a growingopportunity in India, as elsewhere in the world. Hindustan Lever isalready the largest player in the hot beverages out-of-home segment,with over 15000 tea and coffee vending points. The company isexpanding the network aggressively, in the education, entertainment, 55
  56. 56. leisure and travel segments. UNILEVERs allaince with Pepsi willsignificantly strengthen this channel.Health & Beauty Services are Hindustan Levers simultaneous foray tomeet the increasing consumer need for such products and services.Lakme Salons provide specialised beauty services and solutions, underthe recognised authority of the Lakme brand. The Ayush TherapyCentres provide easy access to authentic Ayurvedic treatments andproducts.Hindustan Lever, which once pioneered distribution in India, is todayreinventing distribution - creating new channels, and redefining theway current channels are serviced. In the process it is convergingproduct availability, with brand communication and brand experience.NOVEL PRODUCT NEW PROCESSHindustan Levers mission is to meet everyday needs for nutrition,hygiene, and personal care, with brands that help people feel good,look good and get more out of life. UNILEVERs research &development base, one of the largest in Indian industry, helps achievethis mission, with novel products and new processes. The companyhas over 380 patents, demonstrating its leading edge in consumer-relevant R&D.The Hindustan Lever Research Centre (HLRC), with facilities in Mumbaiand Bangalore, and global technology centres in India have over 200highly qualified scientists and technologists, many with post-doctoralexperience acquired in the US and Europe. Set up in 1958, HLRCs aimis to develop new products and processes, improving benefits andquality of existing products, and optimal use of resources. 56
  57. 57. Major innovations have taken place, down the decades, in everycategory in which UNILEVER is present. From Home Care to Personalcare, Beverages to Foods.BETTER CLEANING, LESSER WATER CONSUMPTIONConsider for example, UNILEVERs development of a water-savingtechnology for its detergents. One of the most severe problems thatIndia faces today is shortage of water. Water scarcity affects one inevery three Indians. In a typical Indian home, at least 20% of thewater consumed goes behind washing of clothes. UNILEVER decidedthat it would be of immense benefit to an Indian household, if atechnology could be developed, which would help reduce waterconsumed in washing of clothes. UNILEVERs scientists have innovateda path-breaking technology - it reduces water consumption and timetaken for rinsing by 50%. The technology has already been introduced.WORLDS MOST ADVANCED WATER PURIFIERPeople in cities and towns spend enormous amounts, either in fuel ordevices, to ensure safe drinking water. UNILEVERs scientists havedeveloped a breakthrough device, called "Pureit", which purifies wateras safe as boiled water, providing 100% protection from all water-borne diseases; it also removes pesticides that may be present indrinking water. Its operation does not require electricity, running tapwater and plumbing or expensive maintenance. It thus provides waterat a cost of just Re.1 for every six litres - or less than 20 paise a litre.IODINE IN SALT - THE VITAL INGREDIENTIodine, it is well-known, is important for the mental development ofyoung children. Iodised salt is a well-accepted mode of ensuringappropriate iodine intake. Yet Iodine added to salt is lost in transport, 57
  58. 58. storage as well as in the process of cooking. UNILEVER scientists havedeveloped a patented breakthrough technology to stabilise iodine insalt, following work on the stability of iodine under Indian conditions ofstorage and cooking. The technology has made it possible to actuallyrealise the purpose of iodised salt - that people get appropriate iodineintake through the food they eat.TECHNOLOGY OF SKIN LIGHTENINGResearch in the biology of skin pigmentation has led to the formulationof a product like Fair & Lovely Skin Cream and Lotion. The product hasbeen periodically updated through new patented actives. It has nowbecome a global success through exports to over 30 countries. Theproduct is equally used by the local population of these countries,apart from those of Indian origin.UNILEVER has equally developed new processes.In-house machine developmentThe company has the capability to design and manufacture machinesin-house. This enables the company to set up plants at half the cost ofothers. Such technological developments have also led to significantimprovement in productivity.ENERGY CONSERVATIONIn the past, one of the most significant breakthroughs of UNILEVERsresearch initiative has been the development of a technology to usenon-conventional forest seed oils for soap-making which, since the1970s, has helped save around $1.2 billion in foreign exchange.UNILEVER had received the Government of Indias prestigious awardfor import substitution. Development of Structurant Technology for 58
  59. 59. soap manufacturing also helped save costly conventional oils withoutany compromise on product performance and quality. The latesttechnology to produce Distilled Fatty Acid for soap making and theresultant plant capacity expansion has drastically brought downspecific energy consumption while improving distillation yields. Theevolution of continuous soap processing technology has also reducedenergy consumption.UNILEVER believes that technology is critical to delight consumers.Creative application of technology has made Hindustan Leversuccessful in launching products and services, which raise the qualityof life.HELPING HANDS:UNILEVER COMMITS Rs. 8 CRORES FOR IMMEDIATE RELIEF,REHABILITATION TO TSUNAMI-HIT COMMUNITIESUnilevertoday announced to commit, a total outlay of Rs.8 crores forimmediate relief and helping people to rehabilitate themselves so thatthey can resume their livelihood, in the tsunami-hit areas ofPondicherry, Tamil Nadu and Kerala. Of this, Rs.5 crores (absolutevalue terms) is being utilized for distribution of the Companysnutritional & personal hygiene products for immediate relief to theneedy. Another Rs.3 crores will be raised partly by contributions fromcompany employees and the balance contribution from the Companyto be used in collaboration with NGOs working with the community toprovide the people, notably fishermen, with means of livelihood andhelp them back on their feet.Since December 26, employees of UNILEVER factories and offices inPondicherry, Tamil Nadu and Kerala have been providing necessary 59
  60. 60. relief to the tsunami-hit people. The relief operations include,distribution of bread and biscuits to over 2000 families in Pondicherry,12,000 cooked meals for families in Chennai, Nagapattinam, Cuddaloreand Andamans. Over 12,000 dry relief packs, comprising of Companysdry rations and personal hygiene products have already beendistributed.UNILEVERs employees are donating a days salary, matched equallyby the Company for exclusive use in rehabilitation.The biggest concern is, that people/ fishermen have lost their meansof livelihood. UNILEVER plans to focus its rehabilitation efforts torestore their means of livelihood so that the local communities canquickly get back to their lives at the earliest.UNILEVER has always been a front runner in its call for national dutyand caring for the community. Its employees not only donategenerously, but volunteer to take part in relief operations bycommitting their time and physical effort. This is in line with ourcorporate value of “care” and our CSR mission which has become anintegral part in our way of doing business.Earlier during the Gujarat earthquake, UNILEVER had adopted andreconstructed a new village, Yashodadham, in Bhachau Taluka ofKutch district. Yashodadham, spread over 25 acres, comprises 289homes, school building, an exclusive playground for children and amulti-purpose community centre, including an anganwadi (creche),health centre, community room and panchayat office, an undergroundreservoir and an overhead tank for water. All the dwelling units haveelectricity, and piped water and are now fully occupied. 60
  61. 61. UNILEVER is Indias largest Fast Moving Consumer Goods company,touching the lives of two out of three Indians. UNILEVER’s mission is to“add vitality to life" through its presence in over 20 distinct categoriesin Home & Personal Care Products and Foods & Beverages. Thecompany meets everyday needs for nutrition, hygiene, and personalcare, with brands that help people feel good, look good and get moreout of life.SPECIAL EDUCATION & REHABILITATIONUnder the Happy Homes initiative, UNILEVER supports specialeducation and rehabilitation of children with challenges.ASHA DAAN:The initiative began in 1976, when UNILEVER supported Mother Teresaand the Missionaries of Charity to set up Asha Daan, a home inMumbai for abandoned, challenged children, and the destitute.Subsequently, Asha Daan has also become a home to the HIV-positive.The objective in supporting Asha Daan was and continues to be toshare the organsations prosperity in supporting the Mothers missionof serving the "poorest of the poor". Asha Daan has been set up on a72,500-square feet plot belonging to UNILEVER, in the heart ofMumbai city. UNILEVER bears the capital and revenue expenses formaintenance, upkeep and security of the premises. The destitute andthe HIV-positive are provided with food, shelter and medication for thelast few days of their lives. The needs of the abandoned challengedchildren are also met through special classes of basic skills,physiotherapy and, if possible, corrective surgery. At any point of time,it takes care of over 300 infants, destitute men and women and HIV-positive patients. 61
  62. 62. Over the years, UNILEVER has opened schools for challenged childrenwith a sharper objective of supporting families of such children,helping the children become self-reliant by learning appropriate skillsto be productive members of the household.ANKUR:In 1993, UNILEVERs Doom Dooma Plantation Division set up Ankur, acentre for special education of challenged children. The centre takescare of children with challenges, aged between 5 and 15 years. Ankurprovides educational, vocational and recreational activities to over 35children with a range of challenges, including sight or hearingimpairment, polio related disabilities, cerebral palsy and severelearning difficulties. These physically and mentally challenged childrenare taught skills, such as cookery, painting, embroidery, bamboocrafts, weaving, stitching, etc depending on their aptitudes. The centrehas rehabilitated 10 children, including self-employment for 6 childrenby providing them with shops, and 3 girls have been providedemployment as creche attendants. It has also moved to normalschools 18 children. Since inception it has covered about 80 children.Ankur received the Lawrie Group Worldaware Award for SocialProgress in 1999 from HRH Princess Royal in London.KAPPAGAM:Encouraged by Ankurs success, Kappagam ("shelter"), the secondcentre for special education of challenged children, was set up in 1998on UNILEVER Plantations in South India. It has 17 children. The focusof Kappagam is the same as that of Ankur. The centre has 17 children,being taught self-help skills, useful vocational activities like making ofpaper covers, greeting cards, wrapping papers, fancy stationery,napkins, brooms made out of coconut leaves, candles, and also somehome care products. About 12 of the children have become relatively 62
  63. 63. self-reliant by earning through crafts learnt at the centre. Sinceinception, it has covered about 28 children.ANBAGAM:Yet another day care center, Anbagam ("shelter of love"), has beenstarted in 2003 also in the South India Plantations. It takes care of 11children. Besides medical care and meals, they too are being taughtskills such that they can become self-reliant and elementary studies.Over 20,000 individuals have benefitted from the Happy Homesinitiatives since inception. UNILEVER is wholeheartedly involved withall four centres and will continue to be involved in the future. 63
  64. 64. UNILEVER– DECEMBER QUARTER 2005 RESULTS • Total Sales grow by 14.4%; FMCG Sales growth at 15.8% • HPC and Foods grow by 17% and 9% respectively; Broad based growth across categories • PBIT grows 13.5%; Net Profit increases by 56% • EPS for 2005 grows 17.6%; Final Dividend Rs 2.50 per share of Re 1/- each; Total Dividend Rs 5.00 per share for 2005Unileverannounced its results for December Quarter 2005. Growthmomentum achieved in the last three quarters has been sustainedwith total sales growing by 14.4%. Domestic FMCG sales were higherby 15.8% with both Home and Personal Care (HPC) and Foodsperforming well.HPC business grew by 17.3% driven by strong performance in allcategories. Significant sales growth was achieved in the highlycompetitive categories of Laundry and Shampoo. Soaps recorded goodgrowth, with Lux growing handsomely reflecting in market share gains.All the brands in Skin category maintained their strong performanceleading to a double digit growth for the category. Consumer relevantinnovations continue to drive off-take and key innovations during thequarter include the re-launch of “Thick and Strong” Sunsilk Pink, Luxvariants for the 75-year celebrations, and the national launch of“Jasmine Fresh” Rin Advanced Powder. 64
  65. 65. In Foods business, Tea achieved a modest growth despite a decliningmarket and falling commodity prices; Coffee continued to performwell. Processed Foods business grew strongly, albeit on a low base.The Icecream business also achieved a 33% increase in sales, led bythe impulse category. Relaunch of Knorr soup with a superior mix andintroduction of new variants was the key Foods innovation during thequarter.Profit before Interest and Taxes (PBIT) increased by 13.5% afterabsorbing a 50% higher spend in Advertising and Promotions. Highercrude oil price led cost pressures continued, particularly in Laundrycategory, but were mitigated by aggressive cost effectivenessprograms. Profit after tax (PAT) grew by 22.7% due to a lowereffective tax rate and Net profit, including the impact of exceptionalitems was higher by 56%.The total sales were 11.4% higher than in the previous year, withbroad based growth across categories leading to both HPC and Foodsbusinesses growing by 14% and 8%, respectively. Judicious priceincreases coupled with robust cost saving initiatives partly neutralisedthe impact of both cost escalations, particularly in the Laundrycategory, and the higher investments behind brands. Consequently,PBIT increased by 1.1%. A lower tax charge for the year resulted in aPAT growth of 12.9%. Net Profit and Earnings Per Share at Rs 6.40,grew by 17.6%.Mr Harish Manwani, Chairman commented: “We have sustained thegrowth momentum in December quarter and it continues to be broadbased across HPC and Foods categories, particularly, in the 65
  66. 66. competitive categories of Laundry and Shampoo. This was driven byhigher investment behind our brands with exciting innovations,excellent activation, new initiatives in Customer Management and withsignificantly higher levels of A&P spends. The double digit salesgrowth of over 11% for the year 2005 has been achieved after a gapof six years.Our strategic priority remains unchanged. We will continue toleverage our focused portfolio of powerful brands to sustain marketleadership and grow our market position across strategic brands andcategories. In a competitive landscape, we shall continue to deliverconsumer value and invest behind our brands. We recognize thechallenge of inflationary cost pressures driven by crude oil prices and,in the competitive context, achieving cost leadership across theextended supply chain continues to be a key priority.”DIVIDENDThe Board of Directors at their meeting held on February 14th, 2006has proposed a final dividend of Rs 2.50 per share of Re 1 each,subject to the approval of the shareholders at the annual generalmeeting. This along with the interim dividend of Rs 2.50 per shareamounts to a total dividend of Rs 5.00 per share for the year 2005.UNILEVER is Indias largest Fast Moving Consumer Goods company,touching the lives of two out of three Indians. UNILEVER’s mission isto “add vitality to life” through its presence in over 20 distinctcategories in Home & Personal Care Products and Foods & Beverages.The company meets everyday needs for nutrition, hygiene, and 66
  67. 67. personal care, with brands that help people feel good, look good andget more out of life. UNILEVER TRANSFERS TEA ESTATES INDIA TO MAXWELL GOLDEN TEA PRIVATE LIMITEDUnileverhas transferred its entire shareholding in its 100% subsidiaryTea Estates India Limited (TEIL) to Maxwell Golden Tea Private Limited(MGT), a Woodbriar Group company on March 1, 2006. TEIL owns 8tea estates and 6 factories for processing tea in the high-yielding beltof Tamilnadu with an average annual output of approx. 10,500 metrictons.Woodbriar Group has interests in plantations, insurance services andreal estate. The Group’s gardens are spread across the premium teagrowing regions in Tamilnadu and Kerala. UNILEVER managementbelieves that the proposed transfer to Woodbriar Group is in the bestinterest of the tea plantation business and all its stakeholders. Existingterms and conditions of services of all TEIL employees will be fullyprotected in accordance with applicable laws and terms of theiremployment.The acquisition of TEIL by Woodbriar Group will provide scale andbring in synergy benefits to Woodbriar Group, as a large portion ofTEIL gardens are contiguous to the existing tea gardens of WoodbriarGroup. Canara Bank, Madurai Circle has funded the debt component toWoodbriar Group for this acquisition. 67
  68. 68. With this disposal of shareholding in TEIL, UNILEVER has completed itsexit from its tea plantations business both in South India and Assam.It may be recalled that UNILEVER had sold its interests in RossellIndustries Limited and Doom Dooma Tea Company Limited in Assamduring the last 12 months.DSP Merrill Lynch Limited acted as financial advisor to Unilever.ABOUT UNILEVER:UNILEVER is Indias largest Fast Moving Consumer Goods Company,touching the lives of two out of three Indians. UNILEVERs mission is to"add vitality to life" through its presence in over 20 distinct categoriesin Home & Personal Care Products and Foods & Beverages. Thecompany meets everyday needs for nutrition, hygiene, and personalcare, with brands that help people feel good, look good and get moreout of life. For more information visit www.Unilever.com 68
  69. 69. COMPETITORSTHE PROCTER & GAMBLE COMPANY COMPANY PROFILEThe Procter & Gamble Company (P&G) is a brand behemoth. Theworlds #1 maker of household products courts market share andbillion-dollar brands. P&Gs products fall into three categories:global beauty care; global health, baby, and family care; andglobal household care. It also makes pet food and water filtersand produces soap operas (As the World Turns). More than 20 ofP&Gs brands are billion-dollar sellers (including Actonel,Always/Whisper, Bounty, Charmin, Crest, Downy/Lenor, Folgers,Iams, Olay, Pampers, Pantene, Pringles, Tide, and Wella).Acquisitive P&G bought Clairol in 2001 and a majority of Wella in2003. Its purchase of Gillette in late 2005 was its biggest buy incompany history.FINANCIAL HIGHLIGHTSFiscal Year End: JuneRevenue (2007): 56741.00 MRevenue Growth (1 yr): 10.40%Employees (2007): 110,000Employee Growth (1 yr): 0.00% RESEARCH METHODOLOGY 69
  70. 70. The section includes the overall research design, the samplingprocedure, the data collection method, the field method, and analysisand procedure.Research design:-For this research project exploratory method is usingDATA COLLECTION METHOD:-The data collect for the research can be classified as primary data andsecondary data.Primary data is by visiting existing customer and expected customer ofUnilever. And making them fill up the questionnaireSecondary data is from internet, books, magazine etc.RESEARCH INSTRUMENTThe instrument use for data collection is structured questionnaire.Question is open and close ended depending upon the information thatneeded to be elicited. I am also using the scaling technique to assessthe attitude of the customer.Sampling plan:-Keeping all the constrains in mind a sample size of 100 people .Thesampling procedure is systematic sampling 70
  71. 71. FUTURE SCOPEThe Indian FMCG market currently appears to be at a crossroads, andUNILEVER are attempting to change customer perceptions of theirbrands and where specific buying motivations appear to be replacinggeneralities. This meanwhile, is quite unlike the west where buyers consideraesthetics, comfort and safety, not necessarily in that order, beforefinalising a purchase. “It’s smarter to think about emotions andattitudes, if marketers are to do a better job of marrying what aUNILEVER offers to the consumer’s image of the offerings. Anotherimportant outcome of the research is the believability of the claims.Most of the claims are realistic and easy to understand. Most of thepeople don’t understand the quality claims by UNILEVER.The mindset of the Indian consumer is such that he is delighted if hebuys a pen a little cheaper than his neighbour. Things are, however,slowly changing and customers at the upper end of the market arenow ready to pay more for more. I hope that this approach will soonenter the new era, maybe not with the same intensity . “Success will largely be determined to the extent a companycan differentiate itself in terms of intangibles that go with a Product”.Thus, success could well hinge on the best of bundle of services thatUNILEVER provides.UNILEVER grew from zero to the 2,268 Million $,mark and the number One FMCG company in India this year. Lookingat the present scenario it can be said that though there is lot ofcompetition in the market but UNILEVER is picking up well. The 71
  72. 72. landmark achievement comes in 74 years in India after clinching itsfirst overseas sale.FINDINGS, DATA ANALYSIS AND CONCLUSIONS WHEN COMPARED WITH PROCTER AND GAMBLE LTD.FindingsOn the basis of research, we found that there is a nominal difference inthe efficiency of Unilever. vis-à-vis Procter and Gamble Ltd. I havereached to this conclusion on the basis of following findings. They areas follows.PRODUCT LINEUnileverUNILEVER Home & Personnel Care > In personal Wash they have Lux , Lifebuoy, Liril, Hamam,Breeze, Dove, Pears and Rexona .  In Laundry they have Surf Excel, Rin and Wheel.  In skin care their brands are Fair N Lovely and Ponds.  In hair Care they have Sunsilk Naturals and Clinic All clear.  In Oral Care their brands are Pepsodent and Close-up.  In Deodorants they have Axe and Rexona.  In Colour Cosmetics they have Lakeme. 72
  73. 73.  In Ayurvedic Personal And Health Care they have Ayush.Foods  In tea they have the brand name brook bond and lipton.  In coffee they have bru.  In foods they have kissan and kinnor annpuran.  In ice creams they have the kwality walls.Water  Unilever has launched pueit, the most advanced in home water purifier in the world.Procter and Gamble P&G Hygiene and Health care ltd. marketsseveral leading brands: Whisper sanitary napkins in the FeminineHygiene category; Health care products such as Vicks VapoRub, vicksaction 500, Vicks Cough Drops, Vicks Inhaler; skin care and cosmeticproducts viz. Old Spice. P&G Home Products Ltd. markets several leading brands. In FabricCare P&G has two of its world leading detergents Tide and Ariel, inHair Care they have Pantene Pro V, Head & Shoulders and Rejoice. InBaby Care they have Pampers.CONCLUSION- As Unilever has more brands in its basket thenProcter and gamble so it is more close to common man and touchinghis or her daily life in a more comprehensive manner. 73
  74. 74. DEALERSWhile choosing the dealers UNILEVER mainly emphasizes on the‘market potential of that area, dealer’s financial position, and dealersback ground (previous business), present business, goodwill and risktaking capabilities ,by the good responsibility of the dealer.PROCTER AND GAMBLEThere is no difference as such in the process of selection of dealers inProcter and Gamble also. Like UNILEVER, P&G also considers dealer’sfinancial position; present business, goodwill and risk takingcapabilities.Finally, Dealers of UNILEVER are satisfied by the companies support inthere sales because the company provides them with various schemesand discounts, whereas satisfaction of P&G dealers lies in goodpromotional activities, advertisement and the flexibility that thecompany provides them. According to the senior officials of P&G it wasfound that it’s a volume based company, hence all the above statedparameters helps the dealer to attract more and more customers. MODE OF TRANSPORTATIONUnilever; UNILEVER uses modified trucks and rails to deliver theproducts from various production sites to the dealers. They are usingnew state of the art technology so that they can even track everysingle bottle of shampoo. Transportation cost is shared by UNILEVERand the dealer.PROCTER AND GAMBLEP&G is also using road and railway transportation system to deliverproduct from various production sites to the dealers. They are alsousing latest Information Technology to track there consignment whosebackend is managed by infosys. Each dealer has to keep the Good 74
  75. 75. Receipt Note (GRN) number and report of the whole items of deliveredproducts. Transportation cost is paid by P&G.In the end, both P&G and UNILEVER uses advanced trackingtechnology to track the goods and both companies use railways androadways for transporting there products. In UNILEVER transportationcost is shared by UNILEVER and the dealer, where as at P&G,transportation cost is paid by P&G.FLEXIBILITYUnilever As far as flexibility is concerned; our group found thatUNILEVER provides more flexibility in terms of delivery of produce.UNILEVER has there own warehouses in every state and if the dealerorders more , he is supplied with the products in time.As far as flexibility is concerned; our group found that P&G does notprovides more flexibility in terms of delivery of produce and in takingorder from dealers.Our group has found that Dealers of UNILEVER are more satisfied thanthe dealers of P&G and therefore UNILEVER is a step ahead in terms offlexibility of placing orders and accepting orders from the dealers.DISTRIBUTION CHANNEL STRUCTUREUnilever- Unilever channel structures consist of whole seller, massretailers, rural and modern trade. Their new approach to distribution isholistic and seeks a three way convergence of product availabilitybrand communication and brand experience. They are reinventingdistribution—creating new channels and redefining the way currentchannels are serviced. They are building new capabilities in trainingthe large number of people involved in these initiatives.Procter and gamble’s channel structure also have whole sellers, massretailers. They are revamping the company’s distribution system usingefficient consumer response {E C R} principles. The new distributionsystem has given the company considerable cost and processefficiencies while significantly availability and visibility of thecompany’s product in the stores.Our group has found that Unilever has more effective and efficientdistribution network as compared to P & G, which increases the 75

×