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CHAPTER I

INTRODUCTION

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COMPANY PROFILE

The mission that inspires HUL's 36,000 employees, including over 1,350 managers, is to

"add vitality to life." HUL meets everyday needs for nutrition, hygiene, and personal care

with brands that help people feel good, look good and get more out of life. It is a mission

HUL shares with its parent company, Unilever, which holds 51.55% of the equity. The

rest of the shareholding is distributed among 380,000 individual shareholders and

financial institutions.

HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's,

Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna,

Kwality Wall's – are household names across the country and span many categories -

soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary

products. They are manufactured in close to 80 factories. The operations involve over

2,000 suppliers and associates. HUL's distribution network, comprising about 7,000

redistribution stockists, directly covers the entire urban population, and about 250 million

rural consumers.

HUL has traditionally been a company, which incorporates latest technology in all its

operations. The Hindustan Lever Research Centre (HLRC) was set up in 1958, and now

has facilities in Mumbai and Bangalore. HLRC and the Global Technology Centres in

India have over 200 highly qualified scientists and technologists, many with post-doctoral

experience acquired in the US and Europe.

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HUL believes that an organisation's worth is also in the service it renders to the

community. HUL is focusing on health & hygiene education, women empowerment, and

water management. It is also involved in education and rehabilitation of special or

underprivileged children, care for the destitute and HIV-positive, and rural development.

HUL has also responded in case of national calamities / adversities and contributes

through various welfare measures, most recent being the village built by HUL in

earthquake affected Gujarat, and relief & rehabilitation after the Tsunami caused

devastation in South India.

Over the last three years the company has embarked on an ambitious programme, Shakti.

Through Shakti, HUL is creating micro-enterprise opportunities for rural women, thereby

improving their livelihood and the standard of living in rural communities. Shakti also

includes health and hygiene education through the Shakti Vani Programme, and creating

access to relevant information through the iShakti community portal. The programme

now covers about 50,000 villages in 12 states. HUL's vision is to take this programme to

100,000 villages impacting the lives of over a 100 million rural Indians.

HUL is also running a rural health programme – Lifebuoy Swasthya Chetana. The

programme endeavtheirs to induce adoption of hygienic practices among rural Indians

and aims to bring down the incidence of diarrhoea. It has already touched 70 million

people in approximately 15000 villages of 8 states. The vision is to make a billion Indians

feel safe and secure. If Hindustan Lever straddles the Indian corporate world, it is

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because of being single-minded in identifying itself with Indian aspirations and needs in

every walk of life.

HINDUSTAN UNILEVER LIMITED INDIA’S LARGEST FMCG COMPANY

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CONCEPTUAL FRAMEWORK

Mission:

Hindustan Unilever Limited mission is to add Vitality to life. We meet everyday needs

for nutrition, hygiene, and personal care with brands that help people feel good, look

good and get more out of life.

Policy:

HUL has earned a reputation for conducting its business with integrity and with respect

for the interests of those their activities can affect. This reputation is an asset, just as real

as their people and brands.

Their first priority is to be a successful business and that means investing for growth and

balancing short-term and long-term interests. It also means caring about their consumers,

employees and shareholders, their business partners and the world in which we live.

From HUL Spokesperson “To succeed requires the highest standards of behavior from all

of us. The general principles contained in this Code set out those standards. More detailed

guidance tailored to the needs of different countries and companies will build on these

principles as appropriate, but will not include any standards less rigorous than those

contained in this Code.

We want this Code to be more than a collection of high-sounding statements. It must

have practical value in their day-to-day business and each one of us must follow these

principles in the spirit as well as the letter”.ref: business world magazine.

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Obeying the Law

HUL companies and employees are required to comply with the laws and regulations

of the countries in which they operate.

Employees

HUL 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. HUL will recruit, employ and

promote employees on the sole basis of the qualifications and abilities needed

for the work to be performed.

HUL are committed to safe and healthy working conditions for all employees.

We will not use any form of forced, compulsory or child labour.

HUL are committed to working with employees to develop and enhance each

individual's skills and capabilities.

HUL respect the dignity of the individual and the right of employees to

freedom of association.

HUL will maintain good communications with employees through company

based information and consultation procedures.

Consumers

HUL is committed to providing branded products and services which consistently offer

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value in terms of price and quality, and which are safe for their intended use. Products

and services will be accurately and properly labelled, advertised and communicated.

Shareholders

HUL will conduct its operations in accordance with internationally accepted principles of

good corporate governance. They will provide timely, regular and reliable information on

their activities, structure, financial situation and performance to all shareholders.

Business Partners

HUL is committed to establishing mutually beneficial relations with their suppliers,

customers and business partners.

In their business dealings they expect their partners to adhere to business principles

consistent with their own.

Community Involvement

HUL strives to be a trusted corporate citizen and, as an integral part of society, to fulfill

their responsibilities to the societies and communities in which they operate.

Public Activities

HUL companies are encouraged to promote and defend their legitimate business interests.

HUL will co-operate with governments and other organisations, both directly and through

bodies such as trade associations, in the development of proposed legislation and other

regulations which may affect legitimate business interests.

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HUL neither supports political parties nor contributes to the funds of groups whose

activities are calculated to promote party interests.

The Environment

HUL is committed to making continuous improvements in the management of their

environmental impact and to the longer-term goal of developing a sustainable business.

HUL will work in partnership with others to promote environmental care, increase

understanding of environmental issues and disseminate good practice.

Innovation

In their scientific innovation to meet consumer needs they will respect the concerns of

their consumers and of society. They will work on the basis of sound science, applying

rigorous standards of product safety.

Competition

HUL believes in vigorous yet fair competition and supports the development of

appropriate competition laws. Their companies and employees will conduct their

operations in accordance with the principles of fair competition and all applicable

regulations.

Business Integrity

HUL does not give or receive, whether directly or indirectly, bribes or other improper

advantages for business or financial gain. No employee may offer, give or receive any

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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 to management.

HUL accounting records and supporting documents must accurately describe and reflect

the nature of the underlying transactions. No undisclosed or unrecorded account, fund or

asset will be established or maintained.

Conflicts of Interests

All HUL employees are expected to avoid personal activities and financial interests

which could conflict with their responsibilities to the company.

HUL employees must not seek gain for themselves or others through misuse of their

positions.

Compliance – Monitoring – Reporting

Compliance with these principles is an essential element in their business success. The

Unilever Board is responsible for ensuring these principles are communicated to, and

understood and observed by, all employees.

Day-to-day responsibility is delegated to the senior management of the regions and

operating companies. They are responsible for implementing these principles, if

necessary through more detailed guidance tailored to local needs.

Assurance of compliance is given and monitored each year. Compliance with the Code is

subject to review by the Board supported by the Audit Committee of the Board and the

Corporate Risk Committee.

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Any breaches of the Code must be reported in accordance with the procedures specified

by the Joint Secretaries. The Board of Unilever will not criticise management for any loss

of business resulting from adherence to these principles and other mandatory policies and

instructions.

The Board of Unilever expects employees to bring to their attention, or to that of senior

management, any breach or suspected breach of these principles.

Provision has been made for employees to be able to report in confidence and no

employee will suffer as a consequence of doing so.

In this Code the expressions 'Unilever' and 'Unilever companies' are used for convenience

and mean the Unilever Group of companies comprising Unilever N.V., Unilever PLC and

their respective subsidiary companies. The Board of Unilever means the Directors of

Unilever N.V. and Unilever PLC’.ref:THE NEWS

Envoirment policy

Hindustan Unilever Limited (HUL) supplies high quality goods and services to meet the

daily needs of consumers and industry. In doing so, the Company is committed to exhibit

the highest standards of corporate behaviour towards its consumers, employees, the

societies and the world in which we live.

The company recognises its joint responsibility with the Government and the Public to

protect environment and is committed to regulate all its activities so as to follow best

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practicable means for minimising adverse environmental impact arising out of its

operations.

The company is committed to making its products environmentally acceptable, on a

scientifically established basis, while fulfilling consumers' requirements for excellent

quality, performance and safety.

The aim of the Policy is to do all that is reasonably practicable to prevent or minimise,

encompassing all available knowledge and information, the risk of an adverse

environmental impact arising from processing of the product, its use or foreseeable

misuse.

This Policy document reflects the continuing commitment of the Board for sound

Environment Management of its operations. The Policy applies to development of a

process, product and services, from research to full-scale operation. It is applicable to all

company operations covering its plantations, manufacturing, sales and distribution,

research & innovation centres and offices. This document defines the aims and scope of

the Policy as well as responsibilities for the achievement of the objectives laid down.

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Investment Behind Brands

Innovation & Superior Quality

Family – safe Petalsoft Water & effort saving Quick wash - 50% No mud Rin

Advance from germs

Perfect Radiance “5 in 1” hair Total Care Whiter teeth Fresher breath

health benefits

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Current Market Context

Actions

• 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

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

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Objectives of Study

To identify the Market Share of Hindustan Unilever.

To identify the marketing strategies of Hindustan Unilever.

Sales Growth%

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Chapter II

RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY

The section includes the overall research design, the sampling procedure, the data

collection method, the field method, and analysis and procedure.

RESEARCH DESIGN

For this research project descriptive method is used.

DATA COLLECTION METHOD

The data collect for the research can be classified as primary data and secondary data.

Primary data is collected by visiting existing customer and expected customer of

Hindustan Unilever Limited and making them fill up the questionnaire(enclosed in the

annexure). Secondary data is from internet, books, magazine etc.

RESEARCH INSTRUMENT

The instrument use for data collection is structured questionnaire. Question is open and

close ended depending upon the information that needed to be elicited. I am also using

the scaling technique to assess the attitude of the customer.

SAMPLING PLAN

A sampling plan was designed that is consists of four decisions.

I) Sample Unit:

Youngsters, businessmen, and housewives, employees were selected to conduct survey.

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II) Sampling types:

There are two types of sampling i.e. Probability Sampling and Non –

probability Sampling. Non Probability Convenience Sampling has been used in the

research.

III) S a m p l e S i z e :

Sample size means limited numbers of respondents covered under the

research study from a population and the researcher has taken a survey of 100

respondents to know the satisfaction level of customer.

IV) Sampling Unit:

The respondents of the Delhi city were randomly selected for the research.

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SCOPE

The Indian FMCG market currently appears to be at a crossroads, and HUL are

attempting to change customer perceptions of their brands and where specific buying

motivations appear to be replacing generalities.

This meanwhile, is quite unlike the west where buyers consider aesthetics, comfort and

safety, not necessarily in that order, before finalising a purchase. “It’s smarter to think

about emotions and attitudes, if marketers are to do a better job of marrying what a HUL

offers to the consumer’s image of the offerings. Another important outcome of the

research is the believability of the claims. Most of the claims are realistic and easy to

understand. Most of the people don’t understand the quality claims by HUL.

The mindset of the Indian consumer is such that he is delighted if he buys a pen a little

cheaper than his neighbour. Things are, however, slowly changing and customers at the

upper end of the market are now ready to pay more for more. I hope that this approach

will soon enter the new era, maybe not with the same intensity .

“Success will largely be determined to the extent a company can differentiate

itself in terms of intangibles that go with a Product”. Thus, success could well hinge on

the best of bundle of services that HUL provides.HUL grew from zero to the 2,268

Million $, mark and the number One FMCG company in India this year. Looking at the

present scenario it can be said that though there is lot of competition in the market but

HUL is picking up well. The landmark achievement comes in 74 years in India after

clinching its first overseas sale.

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CHAPTER III

DATA PRESENTATION

&

ANALYSIS

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DATA ANALYSIS & FINDINGS

Q1. How much is your income?

Income No. of Respondents

<Rs.10,000

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Rs.10,000-Rs.25,000 40

Rs.25,000-Rs.50,000 30

>Rs.50,000 15

Table No. 1

Figure No. 1

Interpretation

The above figure shows that 40% of the respondents earn between Rs 10000- Rs 25000

per month. Whereas, 30% of the total respondents had an income between

Rs 25000- Rs 50000 and a very less number of people had an income of more than

Rs. 50000 per month.

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Q2. During purchase what influence’s your decision?

Factors No. of Respondents

Price 25

Quality 35

Packaging 13

Influence by Others 20

Experience 7

Table No. 2

Figure No.2

Interpretation

The above figure shows that quality and price of the product are two very important

factors which influence the purchase decisions of the buyers. About 20% of the

respondents said they are influenced by others while making the purchase decisions.

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Q3. Have you ever heard of HUL (Hindustan Unilever Limited )?

Response No. of Respondents

Yes 89

No 11

Table No. 3

Figure No. 3

Interpretation

The above figure shows that HUL is a very popular brand as it is known by about 89% of

the total respondents.

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If Yes, from where?

Source No. of Respondents

Newspaper 25

Magazines 16

Television 39

Others 9

Table No.4

Figure No.4

Interpretation

The above figure shows that television is the most popular medium through which people

come to know about HUL, followed by newspapers, magazines and other sources such as

banners, hoardings, etc .

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Q4. Which brand of FMCG products do you use?

Brands No. of Respondents

Hindustan Unilever 37

P&G 23

Nivea 22

Others 18

Table No.5

Figure No.5

Interpretation

The above figure shows that HUL is the most used brands as 37% of the respondents said

that they used HUL among all the other brands. P&G and Nivea are the near competitors

of HUL.

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Q5. Which Hindustan Unilever’s product do you usually prefer or use?

Product No. of Respondents

Bathing Soaps 30

Skin Care 26

Foods 17

Deodorants 13

Others 14

Table No.6

Figure No.6

Interpretation

The above figure shows that out of all the HUL products it’s bathing soaps and skin care

products are the most popular among the respondents. Whereas, 17% of the respondents

like using its food products.

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Q6. Do you think Hindustan Unilever’s product is easily available in market ?

Response No. of Respondents

Yes 94

No 6

Table No.7

Figure No.7

Interpretation

According to the above figure HUL products are easily available to the

respondents,which indicates that the distribution channel of HU L is very effective.

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Q7. Are you satisfied with Hindustan Unilever’s products?

Response No. of Respondents

Yes 73

No 27

Table No.8

Figure No. 8

Interpretation

According to the above figure, 73% of the respondents were completely satisfied by the

HUL products. However around 27% of the respondents were not satisfied with the

products due to various reasons.

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If No, then reason being

Reasons No. of Respondents

Poor Quality 7

High Prices 10

No Services 6

Others 4

Table No. 9

Figure No. 9

Interpretation

The above figure shows that among the various factors for non satisfaction of the

respondents the high prices of the products and the poor quality are two major reasons for

the dissatisfaction of the respondents.

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CHAPTER IV

SUMMARY AND CONCLUSIONS

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RECOMMENDATIONS

As it is obvious from the study the products of HUL have approached the high water

mark of sale in the global consumer market. However, there are genuine reasons to

observe that they have yet to attain the cutting edge status on many counts. In this regard

a few suggestions can be made to give the required boost to the marketing prospects of

HUL products. These can be summed up as follows:

An attempt should be made by HUL management to tap all the potentials offered

by the global market by devoting a more substantial, efficient and better equipped

resource base. This task can be accomplished in the first place by implementing a

stronger and more ending distribution channel for various products so that even

those sections of consumers who are not accessible so easily, can be covered with

greater ease.

Efficient infrastructural base coupled with better and more comprehensive

advertising strategies should be resorted to; though HUL is presently surfing

ahead of others on the path of taking some great initiatives it should be more

concerned about it for the purpose of corporate image building.

The price structure for various products should be more within the limit

of affordability for consumers; the grassroots consideration in this regard should

not be ignored. Here, the policy of loco-centric rather than uniform price structure

would certainly be more advantageous.

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HUL should go for more planned and sensible marketing and advertising

strategies with a view to accomplishing the task of global brand image buildings.

Hyper marketing and retailing network should get special attention as vital

components of HUL’s marketing policy

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SUGGESTIONS

Key attribute components:

Value for money and Customer Care

Operational attributes.

Physical attributes.

Brand Image.

Customer Specific Details.

In any correspondence with the customers the message should be sent in these

components only to have the maximum benefit from the advertisement. Also these

components should be dealt with independently. The advertisements should speak only of

the believable concepts rather than glorifying the pretentious ones. The basic need of the

customer need to be addressed which is actually not much expensive and better quality.

HUL sales growth in june 2004 was decreased due to the problem with promotion and

pricing. Although being the most competitive product on the basis of the Market

Operating Price (MOP), the shampoos are still not selling much. This is perhaps due to

the bargaining stress on the customer and the weak push given by the dealer to the

particular item, when actually it should be sold like a high volume product.

Another serious suggestion is that HUL must give good attention to their all the products

rice and all are not getting much attention. The dealers don’t provide much support to the

customers in making them understand the real Quality behind them. Either, the technical

details should be presented in a clearer manner or the dealers need to be educated

properly.

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LIMITATIONS

Everything in this world has its own advantages and disadvantages which shows ‘nothing

is perfect’.

Following are the problems faced but it’s a part of game:

1. TIME CONSUMING: It is very much obvious that it is a time consuming process. So

much time has been spent for this purpose.

2. LOW PARTICIPATION: Obviously many respondents have not participated in this

and have also created some problems which simply shows that they were not

interested.

3. BIASNESS: Sometimes interested customers were also biased so the collected figures

involve both positive and negative figures.

4. It does not cover all the aspects of the company.

5. SUBJECTIVE: This project only tells you what it is all about.

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BIBLIOGRAPHY

1. The Times of India and Hindustan Times

2. The Economic Times

3. Company’s brochure

4. www.google.co.in

5. www.HUL.com

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ANNEXURE

CUSTOMER SURVEY QUESTIONNAIRE

Name

Age

Address

Gender :

Male

Female

Q1. How much is your income?

a. <Rs.10,000

b. Rs.10,000-Rs.25,000

c. Rs.25,000-Rs.50,000

d. >Rs.50,000

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Q2. During purchase what influence’s your decision?

a . P r i c e

b . Q u a l i t y

c . P a c k a g i n g

d . I n f l u e n c e b y O t h e r s

e . E x p e r i e n c e

Q3. Have you ever heard of HUL (Hindustan Unilever Limited )?

YES NO

If Yes, from where?

Newspaper Magazines

Television Others

Q4. Which brand of FMCG products do you use?

Hindustan Unilever

P &G

Nivea

Others

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Q5. Which Hindustan Unilever’s product do you usually prefer or use?

Bathing soaps

Skin care

Foods

Deodorants

Others

Q6. Do you think Hindustan Unilever’s product is easily available in market ?

Yes

No

Q7. Are you satisfied with Hindustan Unilever’s products?

Yes

No

If No, then reason being

Poor quality High prices

No services Others

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Q8. What Recommendations or suggestions would you like to give for

improvement of our products?