Forwarding

I have great pleasure in forwarding this project report of “Rajkamal Paroha” entitled “competitive analysis of FROOTI and it’s competitor & analyzing the retailers behavior towards the company products” which was carried out under my supervision and guidance for the partial fulfillment of his Post Graduation Diploma in management under “CEREBRAL HEIGHTS INSTITUTE OF BUSINESS STUDIES” .AICTE approved.” He had carried out this work during the period of 05th may 2010 to 04th July 2010 at “Parle agro Pvt Ltd Indore.” he has learnt about various steps of Marketing along with its supply chain management.

His conduct was good during stay with us.I wish all success in his future endeavors.

…………………………….

Mr. Tapan Sarangi

Business head

M.P & C.G

CHIMC(CH INSTITUTE OF MANAGEMENT AND

COMMUNICATION)

PGDMPost Graduate Diploma in Management

Batch- 3rd

A SUMMER PROJECT REPORT

ON

Jounaral Traning

For

HINDUSTAN UNILEVER PVT. LTD.

Under the Guidance

Of

MR. Akhil bharadia

Submitted to - Submitted By-

Prof. Girish Bhatiya swati dwivedi

ACKNOWLEDGEMENT

A summer project is a golden opportunity for learning and self development. I consider myself very lucky and honored to have so many wonderful people lead me through in completion of this project.

I wish to express my indebted gratitude and special thanks to Mr. Rajkumar Naveen-TSO Hindustan unilever. Ltd, Indore (Madhya Pradesh) who in spite of being extraordinarily busy with her/his duties, took time out to hear, guide and keep me on the correct path and allowing me to carry out my industrial project work at their esteemed organization and extending

during the training. I do not know where I would have been without him. A humble ‘Thank

you’ Sir.

I express my heartful thanks to Mr. Akhil bharadia distributor, prashant Jain distributor of HUL ltd for taking part in useful decision & giving necessary advices and guidance and arranged all facilities to make life easier. I choose this moment to acknowledge their contribution gratefully.

I also wish to express my indebted gratitude and special thanks to Prof. Grish Bhatia for guiding me for completing the project.

Place: Indore Swati dwivedi

Date PGDM-2011-2013

2Competitive analysis of HUL vending machines & unilever food solutions and its competitors & analyzing the consumer behavior towards the company’s products”

Declaration

I hereby declare that project Titled “Competitive analysis of HUL vending & UFS products and its competitor & understanding the consumer behaviors towards the company products” is an original piece of research work carried out by me under the guidance and supervision of Mr. Akhil bharadia The information has been collected from genuine & authentic sources. The work has been submitted in partial fulfillment of the requirement of PGDM to our college.

Place: Signature:

……………………..

Date: Swati Dwivedi

PGDM-2011-2013

3Competitive analysis of HUL vending machines & unilever food solutions and its competitors & analyzing the consumer behavior towards the company’s products”

Preface

Progress is a continuous process. It is relative and absolute. We cannot stop at a certain destination and declare that target has been achieved and we need not to go further.

In this new are all the countries & their companies are trying their best to improve economic growth. This trend has created a very complex & competitive environment in the field of business, trend & win the race a new system of management is much needed. To fulfill this need a new field of modern science has developed very fast i.e. Master of Business Management. In this curriculum there are several phases, which have to be covered & compelled properly.

At the completion of the third trimester of PGDM we got opportunity to provide them particular knowledge about every aspect of market. It could be in related fields’ viz. Human Resource Management, Marketing or Finance as per their specialization in the course. It is important because it provides exposure to students about the practical knowledge of the field, which is very essential beside the theoretical knowledge.

The experience that I have gathered during this period has certainly provided me with an orientation which, I believe, will help me to shoulder my assignment successfully in near future. During this period, I have collected all the information of “Competitive analysis of HUL vending & UFS and its competitors & analyzing the consumer behavior towards the company products” through primary data which were available at Indore.

On the basis of my training program, I have tried my best to arrange my work in symmetric way. However to cover the detailed information in such a short period was not possible. Despite the inherent shortcomings of the study, a genuine attempt was made on my part see that the study was carried out in the right respective.

Place: Signature: ………………………………

Date: Name of the student: Swati Dwivedi

4Competitive analysis of HUL vending machines & unilever food solutions and its competitors & analyzing the consumer behavior towards the company’s products”

PGDM-2011-2013

CERTIFICATE

This is to certify that the project entitled “Competitive analysis of HUL vending & UFS and

its competitor & understanding the retailers behaviors towards the company products” has

been carried out by Swati Dwivedi under my guidance in partial fulfillment of the Post

graduate Diploma of management from CH Institute of Business Studies.

Name of the student- Swati Dwivedi

Date – Signature & Seal

Place – Indore ………………………

Mr. Akhil bharadia

Distributor

Hindustan unilever. Ltd. Indore

5Competitive analysis of HUL vending machines & unilever food solutions and its competitors & analyzing the consumer behavior towards the company’s products”

TABLE OF CONTENTS

1. Chapter no. 1 7-10

1.1 Introduction Of study …………………………………………………. 81.2 Scope of study ………………………………………………….. 8 1.3 Significance of study………………………………………………….. 91.4 Objective of study ………………………………………………….. 9

2. Chapter no. 2 10-342.1 Introduction of industry2.2 Company Profile …………………………………………………. 102.3 Brief introduction of vending machines & unilever food

solutions……………….. 162.4 Product mix & product line ……………………………………….. 212.5 Marketing activities & Promotional activities…………………….. 232.6 Marketing strategies……………………………………………….. .24 2.7 Market Size, Growth, & Demand…………………………………...25

3. Chapter no. 3 35-49

3.1 Aim of Research ……………………………………………… 353.2 Research methodology ……………………………………….. 363.3 Statistical tools for Analysis ………………………………….. 443.3 Sample Profile ………………………………………………… 483.5 Limitation of Survey ………………………………………….. 48

6Competitive analysis of HUL vending machines & unilever food solutions and its competitors & analyzing the consumer behavior towards the company’s products”

4. Chapter no. 4 49-72 4.1 Data Analysis …………………………………………….. 494.2 SWOT Analysis ………………………………………….. 71

5. Chapter no. 5 79-80

5.1Finding and interpretation…………………. ………….. 73

6. Chapter no. 6 81-826.1 Recommendation…………………………………………776.2 Bibliography ……………………………………………. 78

6.3 Annexure (Questioner)

7Competitive analysis of HUL vending machines & unilever food solutions and its competitors & analyzing the consumer behavior towards the company’s products”

Chapter - 1 Introduction of study

This study is based on the market research for the Hindustan unilever. Ltd. in Indore. Today there is a growing health and wellness consciousness among consumers and an increasing importance given to fitness and healthy lifestyle choices. Changing work and lifestyle habits leave less time for home cooking and therefore spur demand for convenience and ‘complete nutrition’ from meal replacements. There is a greater inclination to ‘self-care’ rather than ‘medicate’, a greater awareness of the ‘functional’ benefits of health beverages and a greater willingness to pay a premium for such beverages. This study also reflects the market position through retailer feedback.

Scope of Study -

This study focuses on the market research and analyze of market research so scope of this study is wider for some companies or researchers who are looking for understanding the customer reaction or consumer feedback for vending machines & food solution

Market analysis has been carried out in the following developed markets in Indore –

Vijay Nagar Scheme no. 54 & 78, Mahalaxmi Nagar, Old Palasiya, New Palasiya, Tilak Nagar, Geeta bhawan Lalaram Nagar, Vandna Nagar, Geeta Nagar, Telephone Nagar, Goyal Nagar, Chavani, Shubhash Nagar,Sarvate Bas Stand, Nasiya Road Shukliya,Heera Nagar, Patni Pura, Sapna Sangeeta, Khatiwala Tank,Usha Nagar, Mahu Naka, Gangwal Bus Stand, Nori Nagar, Dhar Road Madik Bag, Rajwada, Sindhi Colony Nagar Niagam Area, Bada Ganpati, Malhar Ganj, Aero drum Road, Vijasen Mata Mandir Road, LIG,MIG, HIG Area. Etc

8Competitive analysis of HUL vending machines & unilever food solutions and its competitors & analyzing the consumer behavior towards the company’s products”

Here these are some markets in which data is collected but there is some Other Market which did not mention here but Data is collected by them.

Significances of the Study-

The major significance of study is that it is helpful to HINDUSTAN UNILEVER PVT. LTD. for understanding the market & understanding the position of their product. As the one part of this study is based on the consumers’ feedback so it is directly beneficial to the organization for knowing the consumers problems and suggestion. Competitive comparison for the vending machines & food solution can be a big beneficial part for the organization because it provides the briefed & perfect information about the competitors. This study is also helpful to other key players of juicy market. Moreover, it provides a source of information on the latest market developments and trends that can be useful for a number of individuals and organizations, including importers and consumers, in developed market.

Objective of Study

The main objective of the study is to “competitive analysis of HUNDUSTAN VNILEVER and its competitor & analyzing the consumer behavior towards the company products” through market research & data collection.

To evaluate the major competitors of vending machines & food solution in the market.

To determine there is any relation between consumer’s price level of its product

Identify market opportunities for HUL products in Indore.

To know the satisfaction level of customers about prices of vending machine & food

solution products

9Competitive analysis of HUL vending machines & unilever food solutions and its competitors & analyzing the consumer behavior towards the company’s products”

To know the how to improvement of advertising and campaign of HUL products in

the market.

Analyze the current situation of demand and supply of vending & food solutions and

its competitors.

INTRODUCTION TO INDUSTRY

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG), are products that have a quick turnover and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do for other products. Though the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large.

FMCG Products and Categories Personal Care, Oral Care, Hair Care, Skin Care, Personal Wash

(soaps); Cosmetics and toiletries, deodorants, perfumes, feminine hygiene,

paper products; Household care fabric wash including laundry soaps and synthetic

detergents; household cleaners, such as dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellents, metal polish and furniture polish.

Food and health beverages, branded flour, branded sugarcane, bakery products such as bread, biscuits, etc., milk and dairy products, beverages such as tea, coffee, juices, bottled water etc, snack food, chocolates, etc.

Frequently replaced electronic products, such as audio equipments, digital cameras, Laptops, CTVs; other electronic items such as

10Competitive analysis of HUL vending machines & unilever food solutions and its competitors & analyzing the consumer behavior towards the company’s products”

Refrigerator, washing machines, etc. coming under the category of White Goods in FMCG;

Sector OutlookFMCG is the fourth largest sector in the Indian Economy with a total market size of Rs. 60,000 crores. FMCG sector generates 5% of total factory employment in the country and is creating employment for three million people, especially in small towns and rural India.

Analysis of FMCG Sector

Strengths:1. Low operational costs2. Presence of established distribution networks in both urban and rural areas3. Presence of well-known brands in FMCG sector

Weaknesses: 1. Lower scope of investing in technology and achieving economies of scale, especially in small sectors2. Low exports levels3. “Me-too” products, which illegally mimic the labels of the established brands. These products narrow the scope of FMCG products in rural and semi-urban market.

Opportunities: 1. Untapped rural market2. Rising income levels i.e. increase in purchasing power of consumers3. Large domestic market4. Export potential5. High consumer goods spending

Threats : 1. Removal of import restrictions resulting in replacing of domestic

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brands2. Slowdown in rural demand3. Tax and regulatory structure

Future ScenarioThe Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the economy. A well-established distribution network, intense competition between the organized and unorganized segments characterizes the sector. FMCG Sector is expected to grow by over 60% by 2010. That will translate into an annual growth of 10% over a 5-year period. It has been estimated that FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs 92,100 crores in 2010. Hair care, household care, male grooming, female hygiene, and the chocolates and confectionery categories are estimated to be the fastest growing segments.

Growth ProspectWith the presence of 16.5% of the world population in the villages of India, the Indian rural FMCG market is something no one can overlook. Increased focus on farm sector will boost rural incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure facilities will improve their supply chain. FMCG sector is also likely to benefit from growing demand in the market.

Because of the low per capita consumption for almost all the products in the country, FMCG companies have immense possibilities for growth. And if the companies are able to change the mindset of the consumers, i.e. if they are able to take the consumers to branded products and offer new generation products, they would be able to generate higher growth in the near future. It is expected that the rural income will rise in 2007, boosting purchasing power in the countryside. However, the demand in urban areas would be the key growth driver over the long term. Also, increase in the urban population, along with increase in income levels and the availability of new categories, would help the

12Competitive analysis of HUL vending machines & unilever food solutions and its competitors & analyzing the consumer behavior towards the company’s products”

urban areas maintain their position in terms of consumption. At present, urban India accounts for 66% of total FMCG consumption, with rural India accounting for the remaining 34%. However, rural India accounts for more than 40% consumption in major FMCG categories such as personal care, fabric care, and hot beverages. In urban areas, home and personal care category, including skin care, household care and feminine hygiene, will keep growing at relatively attractive rates. Within the foods segment, it is estimated that processed foods, bakery, and dairy are long-term growth categories in both rural and urban areas.

THE TOP 10 COMPANIES IN FMCG SECTOR

1. Hindustan Unilever Ltd.2. ITC (Indian Tobacco Company)3. Nestle India4. GCMMF ( AMUL)5. Dabur India6. Asian Paints (India)7. Cadbury Industries8. Britania Industries9. Procter and Gamble Hygiene and Healthcare10. Marico Industries

Budget Implications on FMCG Sector  

The Budget gives more focus on the agricultural/farm sector that will boost the rural income thus providing better growth prospects to the FMCG companies. With 12.2% of the world population living in the villages of India, the Indian rural FMCG market is something no one can overlook. Better infrastructure facilities will improve their supply chain. Also, with rising income and growing consumerism, FMCG sectors are likely to benefit. Growth potential for all the FMCG companies is huge as the per capita consumption of almost all products in the country is amongst the lowest in the world. Further, if these companies can change

13Competitive analysis of HUL vending machines & unilever food solutions and its competitors & analyzing the consumer behavior towards the company’s products”

consumer's mindset and offer new generation products, they would be able to generate higher growth in the future

Company profile

Hindustan Unilever Ltd

Type Public

Traded as BSE: 500696

BSE SENSEX Constituent

Industry Consumer goods

Founded 1932

Headquarters Mumbai, Maharashtra, India

Key people Harish Manwani (Chairman), Nitin Paranjpe (CEO and MD)

Products Foods, beverages, cleaning agents and personal care products

Revenue 22,116 crore (US$4 billion)(2011-2012)[1]

Net income 2,691 crore (US$487.07 million)(2011-2012)

14Competitive analysis of HUL vending machines & unilever food solutions and its competitors & analyzing the consumer behavior towards the company’s products”

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company with a heritage of over 75 years in India and touches the lives of two out of three Indians.

HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and has employee strength of over 16,500 employees and contributes to indirect employment of over 65,000 people.[ The company was renamed in June 2007 as “Hindustan Unilever Limited”.

Lever Brothers started its actual operations in India in the summer of 1888, when crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers" were shipped to the Kolkata harbour and it began an era of marketing branded Fast Moving Consumer Goods (FMCG).

Hindustan Unilever's distribution covers over 2 million retail outlets across India directly and its products are available in over 6.4 million outlets in the country. As per Nielsen market research data, two out of three Indians use HUL products

HUL works to create a better future every day and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others.

With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pureit.

The Company has over 16,000 employees and has an annual turnover of around Rs. 21,736 crores (financial year 2011 - 2012). HUL is a subsidiary of Unilever, one of the world’s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about €46.5 billion in 2011. Unilever has about 52% shareholding in HU

15Competitive analysis of HUL vending machines & unilever food solutions and its competitors & analyzing the consumer behavior towards the company’s products”

Brands

HUL is the market leader in Indian consumer products with presence in over 20 consumer categories such as soaps, tea, detergents and shampoos amongst others with over 700 million Indian consumers using its products. Seventeen of HUL’s brands featured in the ACNielsen Brand Equity list of 100 Most Trusted Brands Annual Survey (2011). The company also happens to have the highest number of brands in this list, with six brands featuring in the top 15 list.

The company has a distribution channel of 6.3 million outlets and owns 35 major Indian brands. Its brands include:

Food brands;-

From yummy ice creams to scrumptious sauces, our food brands can satisfy even the most discerning palates.

Annapurna salt and atta

Bru coffee

Brooke Bond (3 Roses, Taj Mahal, Taaza, Red Label) tea

Kissan squashes, ketchups, juices and jams

Lipton tea

Knorr soups & meal makers and soupy noodles

Kwality Wall's frozen dessert

Modern Bread, ready to eat chapattis and other bakery item

Homecare Brands ;-

Whether you want fresh, soft clothes or sparklingly clean bathrooms, our home care brands can help

Active Wheel detergent

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CIF Cream Cleaner

Comfort fabric softeners

Domex disinfectant/toilet cleaner

Rin detergents and bleach

Sunlight detergent and colour care

Surf Excel detergent and gentle washes

Vim dishwasher

Magic – Water Saver 

Personal Care Brands; -

In need of hair care heroics? Wanting to relax with a luxurious bath? Our personal care brands have answers to all these questions and more. 

Aviance Beauty Solutions

Axe deodorant and after shaving lotion and soap

LEVER Ayush Therapy ayurvedic health care and personal care products

Breeze beauty soap

Clear anti-dandruff hair products

Clinic Plus shampoo and oil

Close Up toothpaste

Dove bar & skin cleansing, hair care range, lotions & Creams and anti-perspirant deodorants

Denim shaving products

Fair & Lovely - fairness products

17Competitive analysis of HUL vending machines & unilever food solutions and its competitors & analyzing the consumer behavior towards the company’s products”

Hamam

Lakmé beauty products and salons

Lifebuoy soaps and hand wash range

Liril 2000 soap

Lux soap, body wash and deodorant

Pears soap

Pepsodent toothpaste

Pond's talcs and creams

Rexona soap

Sunsilk shampoo

Sure anti-perspirant

Vaseline petroleum jelly, skin care lotions

Water Purifier Brand:

Pureit Water Purifier

The latest launches for Hindustan Unilever include:

Axe soap bar, air and Lovely advanced multi vitamin,Pepsodent Expert protection range, Pepsodent Mouthwashes, Vaseline moisture therapy Heel Cream, Lakme Perfect Radiance range, Kissan ‘sweet and spicy’ ketchup, New Vanilla Supreme from Kwality Walls, Kwality Walls Selection Range and Pureit Advanced with Double Protection. 

Past Milestones

18Competitive analysis of HUL vending machines & unilever food solutions and its competitors & analyzing the consumer behavior towards the company’s products”

In the summer of 1888, visitors to the Kolkata harbor noticed crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers". With it began an era of marketing branded Fast Moving Consumer Goods (FMCG).

Soon after followed Lifebuoy in 1895; other famous brands like Pears, Lux and Vim. Vanaspati were launched in 1918 and the famous Dalda brand came to the market in 1937.

In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). These three companies merged to form HUL in November 1956; HUL offered 10% of its equity to the Indian public, being the first among the foreign subsidiaries to do so. Unilever now holds 51.55% equity in the company. The rest of the shareholding is distributed among about 380,000 individual shareholders and financial institutions.

The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the company had launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was formed. Brooke Bond joined the Unilever fold in 1984 through an international acquisition. The erstwhile

Lipton's links with India were forged in 1898. Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited was incorporated.

Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986.Since the very early years, HUL has vigorously responded to the stimulus of economic growth. The growth process has been accompanied by judicious diversification, always in line with Indian opinions and aspirations.

The liberalization of the Indian economy, started in 1991, clearly marked an inflexion in HUL's and the Group's growth curve. Removal of the regulatory framework allowed the company to explore every single product and opportunity segment, without any constraints on production capacity.

Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the most visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills Company (TOMCO) merged with HUL, effective from April 1, 1993. In 1995, HUL and yet another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Lever Limited,

19Competitive analysis of HUL vending machines & unilever food solutions and its competitors & analyzing the consumer behavior towards the company’s products”

to market Lakme's market-leading cosmetics and other appropriate products of both the companies. Subsequently in

1998, Lakme Limited sold its brands to HUL and divested its 50% stake in the joint venture to the company.

HUL formed a 50:50 partnership joint venture with the US-based Kimberly Clark Corporation in 1994. Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary Pads. HUL has also set up a subsidiary in Nepal, Nepal Lever Limited (NLL), and its factory represents the largest manufacturing investment in the Himalayan kingdom. The NLL factory manufactures HUL's products like Soaps, Detergents and Personal Products both for the domestic market and exports to India.

The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on the Foods and Beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with significant interests in Instant Coffee. In 1993, it acquired the Kissan business from the UB Group and the Dollops Ice-cream 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 form Brooke Bond Lipton India Limited (BBLIL), enabling greater focus and ensuring synergy in the traditional Beverages business. 1994 witnessed BBLIL launching the Wall's range of Frozen Desserts. By the end of the year, the company entered into a strategic alliance with the Kwality Ice-cream Group families and in 1995 the Milk food 100% Ice-cream marketing and distribution rights too were acquired.

Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998. The two companies had significant overlaps in Personal Products, Specialty Chemicals and Exports businesses, besides a common distribution system since 1993 for Personal Products. The two also had a common management pool and a technology base. The amalgamation was done to ensure for the Group, benefits from scale economies both in domestic and export markets and enable it to fund investments required for aggressively building new categories.

In January 2000, in a historic step, the government decided to award 74 per cent equity in Modern Foods to HUL, thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. HUL's entry into Bread is a strategic extension of the company's wheat business. In 2002, HUL acquired the government's remaining stake in Moder Foods.

20Competitive analysis of HUL vending machines & unilever food solutions and its competitors & analyzing the consumer behavior towards the company’s products”

In 2003, HUL acquired the Cooked Shrimp and Pasteurized Crabmeat business of the Amalgam Group of Companies, a leader in value added Marine Products exports.

Hindustan unilever sets 50,000 crore sales target by 2015

Hindustan unilever has annual turnover of around Rs. 21,736 crores (financial year 2011 - 2012). HUL is a subsidiary of Unilever, one of the world’s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about €46.5 billion in 2011. Unilever has about 52% shareholding in HUL

This will be done through organic route and an aggressive marketing strategy. For starters, it has decided to expand production capacity of its unilever food solution, which is sold under the knorr brand.

.Hindustan Unilever has set a target to more than double its turnover in just four years to 50,000 crore in a plan that industry experts find far too ambitious.

The country's largest consumer goods company, which took more than 75 years to almost touch the 20,000-crore sales mark, has drawn up a plan called '50 by 15' to increase its annual sales to 50,000 crore by 2015, a senior company official said on condition of anonymity

Management Structure

Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods (FMCG) Company. It is present in Home & Personal Care and Foods & Beverages categories. HUL and Group companies have about 16,000 employees, including 1200 managers.

The fundamental principle determining the organization structure is to infuse speed and flexibility in decision-making and implementation, with empowered managers across the company's nationwide operations. For this, HUL is organized into two self-sufficient divisions - Home & Personal Care & Foods - supported by certain central functions and resources to leverage economies of scale wherever relevant. Board Divisions Central functions Businesses

21Competitive analysis of HUL vending machines & unilever food solutions and its competitors & analyzing the consumer behavior towards the company’s products”

Board of Directors/ Key PersonnelMr. Harish Manwani ChairmanMr D. Sundaram Vice chairmanMr Nitin Paranjpe CEO & MD Mr Hemant Bakshi Executive Director Sales & customer development

Mr C.K Prahalad Independent DirectorMr D.S Parekh Independent DirectorMr Gopal Vittal Executive Director

Mr Sridhar Ramamurthy Executive Director & CFO

Sales and income break-up from different business activities of Hindustan Unilever Ltd.:

(Values in crores - (Source: www.hul.com))

(Values in crores)

(Source: www.hul.com)

22Competitive analysis of HUL vending machines & unilever food solutions and its competitors & analyzing the consumer behavior towards the company’s products”

HINDUSTAN UNILEVER LOGO

Logo of Hindustan Unilever is contaning the legacy of their parent company Unilever. Logo of Hindustan Unilever has also been changed with company name. This logo coincides with the announcement of new corporate identity. Name HUL was approved by shareholder at the year annual meeting on May 18 & new identity was officially announced on 25 June following government approval.

New identity provides optimum balance between maintaining the heritage of the company & synergies of global alignment with the corporate name of Unilever. Most importantly it retains “Hindustan” as the first word in its name to reflect the company’s continued commitment to local economy, consumers, partners, & employers.

New logo symbolizes the company mission of “Adding Vitality to life” & play a very strongly in our vision of “Earning the love & respect of India by making a real difference to every Indian”. It comprises 25 different icons representing organization, its brands & idea of vitality.

SUN: Our primary natural resource. All life begin with this Ultimate symbol of vitality.

23Competitive analysis of HUL vending machines & unilever food solutions and its competitors & analyzing the consumer behavior towards the company’s products”

DNA: Double helix, the genetic blueprint of life & a symbol of

bioscience. It is the key to a healthy life. While the sun is the biggest source of life, DNA is the smallest

SPOON: A symbol of nutrition, tasting & cooking.

BOWL: A bowl of delicious smelling food. it can also represent a ready meal , hot drink or soup

SPICE & FLAVOUR: Represent chillier or fresh ingredient.

FISH: Representing food, sea or fresh water.

SPARKLE : Clean healthy & sparkling with energy.

SAUCE OR SPREADS : Represents mixing or string. It suggest blending in flavor & adding taste

BEE: Representing creation, pollination, hard work & bio diversity’s bee symbolizes both environmental challenges and opportunities.

HAND & FLOWER : Hand symbolizes sensitivity care & need .it represent skin & touch. & flowers , fragrance .when seen with hand , it represents moisture or cream.

ICECREAM : A treat, pleasure & enjoyment.

LIPS : represent beauty, looking good & taste.

HAIR : A symbol of beauty & good looking. Placed next to the flower it evokes cleanliness & fragrance; placed near the hand it suggest softness.

PALM TREE: A nurtured resources. It produces palm oil as well as many fruits – coconuts, bananas & dates and symbolizes paradise.

24Competitive analysis of HUL vending machines & unilever food solutions and its competitors & analyzing the consumer behavior towards the company’s products”

BIRDS: A symbol of freedom. It suggests a relief from daily chores, &

getting more out of life.

RECYCLE: A part of our commitment to sustainability.

PARTICLES: A references to science, bubbles & fizz.

TEA: A plant or extract of a plant, such as tea. Also a symbol of growing & farming.

FROZEN: The plant is a symbol of freshness, the snowflakes represent freezing. A transformational symbol.

LIQUID: A reference to clean water & purity.

WAVE: Symbolizes packaging – a pot of cream associated with personal care.

CLOTHES: Represents fresh laundry & looking goods.

HEARTS: A symbol of love, care & health

OUT – OF – HOME BUSINESS

Have you caught the tail of a new trend in town? Have you as yet spotted the best of brands running into the terrain of out-of-home consumption? Running for cover from the meltdown in the in-home segment of consumption!

Out-of-home branding is the new buzzword sweeping Indian shores. Brands that stubbornly remain indoors through their positioning and segmentation strategies are in for a jolt! Consider the facts. The Indian population is a young population. Life expectation is longer than before. Income standards are up. Except for a year of aberration, the Indian monsoon has largely behaved! Good monsoons mean a good crop. Large parts of the rural economy are a

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non tax-paying economy. Good rains spell good crops and good crops in turn spell a good amount of disposable income!

The metro is a happening place. We have five big ones and a whole host of 29 one million plus population towns that are buzzing with activity. The man works. The woman works as well. The average Indian is spending a lot more time out of home than before. Eight hours at work, two hours on travel and two hours of outdoor entertainment and eating out, gobbles up half his day. And that's a lot of time spent out of home! The brand in his life has to appeal to his senses more out-of-home than when in home.

Tea, coffee and food products always have been very popular among people. It is beyond the class boundaries. People of all age groups relish them. With globalization and expansion of retail business, institutional markets etc the ready to serve food items and beverages have gained lot of demand. One can spot the coffee tea vending machines almost everywhere- be it Hospitals, Airports, Commercial complexes, offices, big markets and even local colony markets and UFS product is also use in canteen of hospital, canteen of airports ,hotels, catering,backerys,fast food restaurant and even used in home . Its popularity can be judged from the fact that in places like 56 soaps one can find ready to serve tea, coffee almost everywhere. It has become a style statement to be drinking these instead of the handmade tea/coffee. Food products help to consumers save precious preparation time in the kitchen without compromising on flavour or flair , so they can serve tasty and wholesome meals that keep their guest coming back for more. Its popularity also can be judge from the big hotels, caterings etc like fortune landmark, shaya ji.

They sell like hot cakes especially in markets and shopping places. Nowadays people are conscious about hygiene. Many people go in for these ready to serve tea/coffee and of course their good taste is a major drawing factor.

Lipton Yellow and UFS products have painted many a town and cities! Many a restaurant, big hotels, catering, backer’s, many a bus stop, and many a signage potential is today all yellow Lipton and UFS products seems to run out of home and focus on consumption that is outdoor while competitors seems to focus on what is happening inside the home!

“Happy people are productive people”. This is the basic rule of any company. Big or small, every employer tries at keeping his employees, customers and clients happy. Imagine if an

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organization has a wide range of refreshments to grab, at fingertips; if they could enjoy getting a whole load of refreshments as and when they wished for it. Lever foods service gives them this freedom in form of vending machines. Available in hot and cold formats, they are the complete vending solutions for an organization. So, everyone is happy at the push of a button.

Geographically, tea is widely consumed in the North, East and West of India, and is popular with a wide variety of social classes and consumer age groups. Black standard tea constitutes nearly 80% of value sales. In the south, coffee is bigger as a proportion of total hot drinks than in the rest of the country though green tea has seen its popularity rise.

It accounts for 90% of the total beverage consumption in the country. In 2011, tea co9nstituted 70% of retail volume sales, compared to coffee and other hot drinks with 4.4% and 26% shares respectively.

INSPIRATION EVERY DAY.

We help chefs all over the world serve tasty, wholesome meals that keep their guests coming back for more.

We create ingredients that save precious prep time in the kitchen, without compromising on flavour or flair, and constantly provide ideas and inspiration that keep menus fresh and exciting.

WE KNOW FOOD SERVICE

We've been in food since the 1880s, and home to some of the world's favourite brands: Knorr, Hellmann's, Lipton and more. We work closely with businesses of all sizes, from independent restaurants through to hotels chains and contract caterers, in 74 countries.  So we understand that critical balance for chefs and caterers between impressing their guests and making a profit.

FOR CHEFS BY CHEFSAs part of Unilever, we understand consumers, the guests. We use this knowledge to help chefs and caterers keep up with people's changing tastes. With our team of highly skilled chefs and nutritionists, we help our customers to find the right balance of great tasting and nutritious food served up to the same consistently high standards. Through our widespread presence we can make cuisine ideas travel.

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GROWING FOR THE FUTUREWe always care about putting healthy and nutritious food on the table, but we also care about our impact on the earth. Using ingredients and packaging that are sustainably sourced, generate less waste and consume less energy is all part of our environmentally responsible way of doing business. 

Foods and beverages accounted for more than 52% of Unilever’s global revenues in 2011. In contrast, it generated only 18% of its sales from foods and beverages in the Indian market, compared to 50% sales from home care and 30% sales from beauty and personal care.

The foods category is currently also much less profitable in India. Even though beverage brands like Bru, Lipton and Brooke Bond have performed relatively better, packaged food brands like Knorr, Kissan and Kwality Walls have significantly under-performed their competition in the country and have serious profitability concerns, in contrast to the global competence of Unilever’s powerful food brands.

PRODUCT RANGE (vending & food solutions)

LIPTON – THE TEA AND COFFEE RANGEAn international brand with a winning formulation, with the assurance of total hygiene and top class quality, Lipton Tea and Coffee comes in a range of mouth-watering flavoring:-

TEA: - Plain Tea, Cardamom Tea, Hot Lemon, Tea Bag Tea.

COFFEE: -

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Bru Plain Coffee, Choco Almond, Bru Diet Coffee, Cappuccino Special Coffee.

COLD RANGE: - Bru Cold Coffee (Frappucino), Lipton Ice Tea (Lemon, Peach).

SOUP RANGE: - Knorr Tomato Soup

THE LIPTON VENDING MACHINE Lipton Vending Machines have been specially designed and are being introduced keeping our market realities and interests in mind. Following are the variants of Vending machines:

Mr. Dependable – The New 4 Lane U Cup Machine

1. Option of 4 ingredients in nature of coffee, tea, soup etc.2. Staggered dispensing option for tea bag.3. Temperature interlocking.4. Auto cleaning5. Water source – Online/Bubble top

Smart card Machine

1. Option of 4 ingredients in nature of coffee, tea, soup etc.2. Post or pre paid option through smart card3. Option for consumption data down loading to PC for MIS processing.4. Staggered dispensing option for tea bag.

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5. Auto Cleaning6. Temperature Interlocking7. Water source – Built in tank/ bubble top

Thirst Quencher – Ice Tea Machine

1. Option of 2 ingredients in nature of ice tea and cold coffee.2. Dispensing Rate:

- 3 cups/min (200ml each)- Approx 20 cups non stop

3. Auto cleaning4. Water source – Online/ Bubble top

High Speed Hot Machine

1. Option of 5 ingredients in nature of coffee, dairy whitener, soup etc.2. Option of simultaneously dispensing 3 drinks.3. Option of cappuccino.4. Staggered dispensing option for dairy whitener.5. Dispensing rate:

- 15 cups/min of 100 ml each - Approx 250 cups non-stop

6. Auto cleaning.7. Temperature inter-locking

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A Café bar at Work – Fresh bean Coffee Machine

1. Option of 4 ingredients in nature of coffee bean, dairy whitener, soup etc.2. Providing 10 drink options including 6 options of fresh bean coffee.3. Dispensing rate :

- 2 cups/min of 100ml each4. Temperature interlocking5. Water source – on-line/ Bubble top.

A Lipton Vending Machine is the most advanced of its kind. Features like Microprocessor controlled water temperature, inbuilt Digital Counter, Hardware Lock and Auto-Flush system helps to maintain a low failure rate. It is also hygienic and insect proof, which also contributes to its durability. Flexibility in cup offerings – full and half; is another attribute that makes the Lipton Vending Machine stand out as the most convenient vending machine. The technologically superior equipment has been put through intense stress tests so that it can withstand the demanding local market.

WATER MANAGEMENT

The HUL Company has been known for remarkable consistency in quality for over a hundred years. To ensure that quality beverage is served consistently, cup after cup, the Lipton Vending Machine is fitted with any of four different types of filters :- SINGLE, DOUBLE, TRIPLE AND RESIN filter. This makes sure that the best and safest quality of water goes into the vended Lipton cup. The filter thus enhances the quality of water, taste of the beverage and also increases equipment life.

SERVICE SUPPORT

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For the Lipton vending machine, there shall be an authorized service center with a vast network to cater to the needs of the customer. Three basic steps shall be undertaken to ensure long life and smooth functioning of your Lipton Vending Machine.

1) Regular Daily Maintenance: - Proper training shall be imparted on the daily usage, cleaning and maintenance of the Lipton Vending Machine, at the time of installation, to your personnel.

2) Monthly Preventive Maintenance: - The Lipton crew shall make regular monthly visits for check-ups, maintenance and smooth functioning of Lipton Vending Machine.

3) Breakdown and Repairs: - In case of breakdown, the Lipton crew shall address the problem promptly and effectively. Also, a regular dispatch plan for the pre-mixes shall be regularly communicated to you, for you to maintain an appropriate stock inventory. An exclusive customer care phone no. is provided for any queries and assistance on the Lipton Vending Machine.

UNILEVER FOOD SOLUTION PRODUCT RANGE

Unilever food solution – unilever food solution has recipes products with the assurance of total hygiene and top class quality such as Knorr, kissan, Best food, Brown&polson, REX. All products help to the cooks for preparation of recipes with saving time and are being introduced in the market.

KNORR-

Knorr the worlds no 1 seasoning brands, offer a range of bouillons, soups and sauces to help millions of chefs and operators around the world, bring to their guest a number of delicious and healthy dishes. A global brand with local focus, it also specialises in offering solution for India cuisine with products following are the variants products

Seasoning-

Punch line is Add magic to your culinary masterpieces and delight taste buds with knorr seasoning.

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It is hard to imagine what cooking would be like without the unique flavours provided by seasoning. For centuries, seasonings have been an integral part of the world’s most popular cuisines. Besides imparting a distinctive touch to a dish, seasoning also have numerous health benefits

1) Knorr Aromat seasoning powder2) Knorr tandoori malai tikka mix

3) Knorr lime seasoning mix

4) Knorr chicken broth powder

5) Knorr tandoori tikka mix

6) Knorr demi glace sauce powder

7) Knorr tomato makhani base sauce

Soups-

Punch line is giving your diners the dual benefits of great taste and nutrition with knorr soups.

It was customary to combine various ingredients in a large pot and cook the pot directly over fire. The result? A delicious and healthy dish we today refer to as soup

1) Knorr sweet corn soup2) Knorr thick tomato soup

3) Knorr thick chicken soup

4) Knorr thick mushroom soup

5) Knorr tomato NOG (no onion Garlic) soup

6) Knorr vegetable soup

7) Knorr cream base soup

KISSAN-

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Kissan is a local jewel and one of the most popular food brands in India. Tomato is a critical ingredient in most India food preparations. Kissan has to meet this huge demand through its range of products that include tomato sauce, ketchup, puree and paste.

SAUCES-

Punch line is set free your culinary with the kissan range of sauces - excellent taste, grate aroma and easy to cook.

A sauce is a base used in a variety of food preparation, across cuisine. A sauce compliments a dish while retaining the natural taste of its ingredients. Sauces help food look delightful, smell great and taste delicious.

1) Kissan sauce dip

2) Kissan tomato puree

3) Kissan onion tomato base sauce

4) Kissan sauce maker

5) Kissan tomato ketchup sachet

BEST FOODS-

The history of the best foods dates back to more than a century and is enjoyed by diners around the world. It is one of India’s favourite mayonnaise brands in the food service industry. Made from the finest ingredients to deliver the taste, texture and quality you seek in a good mayonnaise, best helps you jazz up classic dishes as well as create exciting new recipes.

Dressings-

Dress up your salads and range of dressings that is punch line of dressings

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Derived from the world “mahonnaise “mayonnaise was an accidental invention by the French chef of the Duc De Richelieu. It is savoured across the globe as a grate accompaniment for salads, sandwiches and burger. It is also used as a base for preparing a variety of dressings and dips

1) Best foods real vegetarian mayonnaise sauce2) Best foods real mayonnaise sauce

3) Best foods tartar mayonnaise sauce

4) Best foods lemonade juice mix

5) Best food orange juice mix

HISTORY OF VENDING AND FOOD SOLUTION

HISTORY OF VENDING MACHINESAutomated retailing through vending machines is a concept that has been exploited by entrepreneurs around the world for over four decades. India, however, is relatively virgin market though with huge potential. Vending may be considered as a new concept in India, but it has been in existence for thousands of years.

VendingTimeline

Details

215 B.C. Device to dispense holy water used in temples of Egypt, described by Mathematician Hero, who lived in Alexandria.

1076 A.D

The Chinese produce a coin operated pencil vendor.

1700s Coin operated boxes appear in English taverns.

1886 U.S grants several patents for coin operated dispensers.

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1888 Thomas Adams company installs Tutti Frutti gum machines on New

York elevated train platforms.

1902 Horn and Hardart Baking Company opens automatic restaurant in Philadelphia.

1905 U.S post office begins to use stamp vendors.

1920s First commercial cigarette vending machine enters the market.

1930s Bottled soft drink machines, cooled with ice, appear on market.

1936 National Automatic Merchandising Association is founded.

1946 Invention of first coffee vendors leads to use of vending machines for coffee breaks.

1950 First refrigerated sandwich vendors expand lunch venue.

1957 U.S Public Health Service approves Model Vending Sanitation Code, and NAMA establishes industry’s first evaluation programmed certify vending equipment.

1960 Dollar bill changers are added to vending banks.

1980 Electronic components applied to vending machines.

1985 Credit card/debit card services for vending machines introduced.

1986 100th anniversary of vending machines in U.S.

1991 Flavored coffee, espresso and cappuccino introduced in machines.

1993 First remote wireless transmission of data from machines to warehouse.

1999 New dollar coin introduced by U.S mint

History of unilever food solution

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KNORR®: A Legacy of Quality & Innovation

Passion for best-in-class quality, great-tasting food and innovative solutions are at the heart of the KNORR® brand.

Guiding principles:

Commitment to chef-crafted recipes, highest quality ingredients and best flavor and nutrition

Delivering new innovative solutions at the right convenience level

Brand highlights:

1838: Carl Heinrich Knorr realized the need for a quickly-prepared, nutritious meal among factory workers. He developed an innovative preservation process to dry vegetables while maintaining their nutritional value and flavor while reducing cook time.

1890: KNORR® products available in North America

1908: First sauce mix developed

1912: Bouillon cube invented

1948: Introduced chicken noodle soup in sealed aluminum pouch – this innovation enjoyed phenomenal success selling 6.4 million servings in the first 7 months

KNORR® today:

Professional ingredients, ideas and inspiration that deliver the right solution for every chef and every kitchen and that keep patrons coming back for more

Largest global brand for UFS – the market leader in more than 40 countries and one of the most popular, trusted food brands in the world sold in more than 87 countries.

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DISTRIBUTION CHANNEL FACTORY

DEPOT DEPOT

R.S R.S R.S R.S

CONSUMER CONSUMER CONSUMER CONSUMER

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COMPETITOR PRODUCTS

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