Sunsilk Final

7/30/2019 Sunsilk Final

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INTRODUCTION:

Sunsilkis a hair care brand, primarily aimed at women, produced by

the Unilever group, which is now considered the world's leading company andbrand in hair conditioning and the second largest in shampoo.]Sunsilk isUnilevers leading hair care brand, and ranks as one of the billion dollar brands".

Sunsilk shampoos, conditioners and other hair care products are sold in 69countries worldwide.

Sunsilk is sold under a variety of different names in markets around the world

including Elidor, Seda and Sedal. The brand is strongest inAsia,Latin

Americaandthe Middle Eastand is the number one hair care brand

inPakistan,India,Brazil,Argentina,Bolivia,Bangladesh, Sri Lanka, Indonesia,and Thailand

The New Sunsilk Shampoo aims at fulfilling the needs of its target market

by offering a high quality, assessment of the concept in terms of its acceptability,credibility and perceived benefits, that it offers a healthy choice shampoo

alternative to the targeted consumer. The theme of the product shall be anchoredaround the motto:

Softness, shine and manageability of Hair

Product History:

Sunsilk was introduced in 1989 in Pakistan with three variants related to hair

types. Endorsement of a hair stylist was the first step in building the image of thebrand as a hair care expert.
http://en.wikipedia.org/wiki/Sunsilk#cite_note-1http://en.wikipedia.org/wiki/Sunsilk#cite_note-1http://en.wikipedia.org/wiki/Sunsilk#cite_note-1http://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Latin_Americahttp://en.wikipedia.org/wiki/Latin_Americahttp://en.wikipedia.org/wiki/Latin_Americahttp://en.wikipedia.org/wiki/Latin_Americahttp://en.wikipedia.org/wiki/The_Middle_Easthttp://en.wikipedia.org/wiki/The_Middle_Easthttp://en.wikipedia.org/wiki/The_Middle_Easthttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/Argentinahttp://en.wikipedia.org/wiki/Argentinahttp://en.wikipedia.org/wiki/Argentinahttp://en.wikipedia.org/wiki/Boliviahttp://en.wikipedia.org/wiki/Boliviahttp://en.wikipedia.org/wiki/Boliviahttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Boliviahttp://en.wikipedia.org/wiki/Argentinahttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/The_Middle_Easthttp://en.wikipedia.org/wiki/Latin_Americahttp://en.wikipedia.org/wiki/Latin_Americahttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Sunsilk#cite_note-1


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With the competition from local and multinational companies due torationalization of excise duties, Sunsilk has not been able to gain the desired share

in the market. To strengthen the brand, LBPL decided to re-launch Sunsilk with a

premium range consisting of four variants in January 2000. In 2001, due to theconstant research of their affiliated hair care institutes, the need of a shampoo for

oily hair was observed and they launched a new variant of Sunsilk having citrusextracts.

Target Market:

Their main target market is females between the age group 16-40 belongingto the two upper income classes. But in their promotional activities, they cover the

whole market irrespective of these classes.

KEY FACTS:

Number 1 in Asia, Latin America and the Middle East

Sales of more than 1 billion a year

Selling in 80 countries

Also sold as Elidor, Hazeline, Seda and Sedal

Recent Awards: Holds the Guinness World Record for the most heads of hair

washed and styled in one day

The core range of Sunsilk hair care range in the GCC is produced in Jeddah, Saudi

Arabia.

1)4PS :

I)PRODUCT:

Currently, the range consists of:

Yellow Sunsilk with Bio Proteins from Vegetable Extracts:Normal hair needs wholesome nourishment. New Sunsilk wi th

BioP r o t e i n e x t r a c t e d f r o m v e g e t a b l e m i l k h a s n u t r i e n t s t h a t

d e e p l y p e n e t r a t e e a c h h a i r s t r a n d , t o n o u r i s h i t l e a v i n g h a

i r s t r o n g a n d beautiful.

Black Sunsilk with Melanin from Plant Extracts:


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D u l l h a i r n e e d s a r i c h b l a c k s h i n e . N e w S u n s i l k w i t h

M e l a n i n extracted from plants serves this purpose very effectively. Ithelps in the growth and re tent ion of the black color of hai r , g i v ing

it a rich black shine..

Green Sunsilk with Fruitamins Vitamins from fruit Extracts:

Thin and limp hair needs extra body and volume. New sunsilkwithFrui tamins has nat ural ext racts f rom f rui t that c ontains Vi ta

mins .T h e s e v i t a m i n s h e l p i n g i v i n g e x t r a b o d y , s h i n ea n d a m a z i n g manageability to the thinning and lifeless hair.

Pink Sunsilk with yoghurt proteins :Dry hair needs wholesome conditioning, extra shine and style.

NewS uns i lk wi th yoghur t pro te ins makes the d ry

hai r fu l l of l i fe . I t sespecia l ingredients mois tur ize each hai r right to its tips leaving itshiny and beautiful.

Orange Sunsilk with active nutrients from Citrus Extracts:

The advanced formula of orange Suns i lk i s the resul t of thelatestresearch. This shampoo is especially designed for oily hair type

thatlooks flat and greasy due to the excess of moisture. New sunsilk withactive

ingredients from cit rus extracts cleans the excess oil off hair while itsnutrients deeply penetrate each hair strand to nourish it.

II)PRICING:

HINDUSTAN UNILEVER claims to practice value-based pricing inwhichthe cus tomers percept ion of the product s pr ice p rov ides a

starting point for developing the marketing mix of the product. The researchdepartment determines this price usually by using focus groups. The

pr ice of Re 1 and 2 for Sunsi lk shampoo sachets shows how the price also

reflects a concern to make the purchase more convenient, since the rupee is

denoted in this value. Sunsi lk is also avai lable in Rs 45 and Rs 169 pricebottles to cater to the demands keeping in mind the wants of this particularcustomer segment. The primary importance of this value-based pricing is that the

product demand will be much higher if it s price is in line with thecustomers perception of its value. One crucial concern for value-basedpricing is st rict management of cost in order to be able to make a


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p rof i t a t the value-based pr ice . Af te r the in i t ia l pr i ce i s

determined, HINDUSTAN UNILEVER then uses target costing in order to achievethe required profits.

III)PROMOTION:

Build top of the line consumers awareness.

Creating a personality of the brand. Besides having these general objectives, theadvertising objectives are set avoiding to the advertising strategy for each

product , e.g . Sunsilk advert is ing ob jectives since it was being re-launchedwere:

To increase the usage. Conditioning benefits.

Makes the hair appear clean and shiny. Imparts a feeling of freshness-due to fragrance.

Easy to manage, silky, soft hair. Unique shampoo for every hair type.

Effectively communicate brand promise.

Promotional strategy:

Innovative campaigns such as Hairapy and LifeCant Wait werelaunched to attract women to the brand Sponsored short films thatwere broadcast during popular television shows.

Media platforms used Print media internet rural campaign environment

concern ads

Music videosFree sample distribution

Demo campaigning

Promotion of the products in the sunsilk range through movies such

asFashion Suns i lk has come up wi th a new promot ionalca mpa ig n GO OD HA IR DAYS in six major cities in

collaboration with famous hair styl ists of the country. HoardingsSponsorships.

Enhancement of product mix New product formulations according to changing consumer preferences


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Advertising HINDUSTAN UNILEVER believes that messages about

product delivered by credible sources can be very persuasive. Hence JawedHabib who is an hair careexpert endorses Sunsilk and more value is added to

the brand. Consumers relate to products itself, they can relate to a

human being who consumers bel ieve is anexpert so JawedHabib is an expert so is Sunsilk. Jawed Habib a recognized

andhighly qualified hair stylist is used by Sunsilk in its ads because they

want to bringout an experts image.

METHODS ADOPTED TO PROMOTE THE BRAND NAME OF SUNSILK

-marketing

-Mart andwere

telecast in-store

INNOVATIVE AND UNIQUE STARERGIES IMPLEMENTED BY

SUNSILK IN INDIA

Hindustan Unilever launched the

Gang of Girls website in June 06.Indias first online girl community concept.

Gang of Girls site pushed online and via TV and print.

Lots of media mentions as it as a successful branded space.Direct contact with target audience

Gang of Girls events at 60 college festivals, malls and multiplexesacross

India.

Sunsilkgangofgirls.com benefited from redirect from Sunsilknaturals.com.

This site has 100,000 registered users and very similar features.Hindustan Lever claims 2,500,000 registrations to Gang of Girls site --

25,000 girl gangs

200 million hits12-13 million page views every month

Company taking benefits of new web 2.0 technologies ranging from blogs to powerof social networking.

As far as brand is concerned plus side for


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sunsilk

here is ability to use power of technology to position brand successful and createfollowing among niche users whom must have generated enough feedback for

thebrand to understand demographic served.Other brands need to take a cue from

here and understand how web can be used as an effective

brand delivery/promotion tool.-HUL EXECUTIVE

IV)PLACE:

Distribution Objective:

To reach as many towns and villages as we canHINDUSTAN UNILEVER has 150 distributors whose function is to sell to

wholesaler s directly. There are different distributors for different areas. They are

carefully selected and their performance is constantly evaluated.OUTLETS,RETAILERS.

2) GROWTH PROSPETS:

MUMBAI: Consumer goods giant, HLL is slashing the prices of its

shampoo brands Clinic Plus and Sunsilk by around 20%. The company willwithdraw the ongoing consumer promotion offer (buy one, get one free) on itsshampoo brands in the next few days.

Sources said, while a price cut will be officially announced for its biggestshampoo brand, Clinic Plus initially, the prices of Sunsilk will also be scaled downsoon.

Currently, while a 200-gm Sunsilk bottle is priced at Rs 100, a 200-gm Clinic Plusis priced at Rs 70.

Already the company has gone slow on the supply of its shampoo stocks in the

market till the existing inventory in the market is sold out. Analysts said the price

cut was expected by the market since HLL would have found it tough to sustain theongoing consumer offer because of the financial burden involved and the pressure

on the supply chain network. The price cut is expected to help HLL shore up its

shampoo volumes, although margins will be impacted in a highly-competitivemarket.

According to ORG numbers, Clinic Plus has a market share of 23.4%, while Clinic


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All Clear has 9.9%, Sunsilk 13%, Pantene 7.5% and Head & Shoulders 9.5%.

Smaller players in the Rs 1,400-crore market had been giving the big companies arun for their money with a better price-value equation to the consumer.

HLL officials admit that the current price structure has proved to be a majordeterrent to sales of the big packs in the market taking off.

Arch rival, P&G too had not released new stocks of Pantene weeks after itannounced a 15-20% price cut. City distributors told ETthat the company seemsunwilling to put out the new stocks until HLL withdrew the promotional offer.

Consumers would obviously opt for the 'buy one and get one free' offer of HLL.

Very clearly, PG knew that the offer would be withdrawn soon, since the suppliesof Pantene are expected to reach us today, said a retailer.

Analysts say that HLL lost its pricing power in the segment as companies like

Cavin Care (shampoo brand Chik) and Beauty Cosmetics (Nyle) reported freshgains in their market share, at the expense of the market leaders. Currently, in

terms of market penetration, analysts say only 40% of urban homes and 16% ofrural homes use shampoos.

The segment is only a small part of overall revenues for FMCG companies, but it

is one of the few consumer goods categories that is still growing. Sachets currently

contribute 70% of total industry sales and had impacted the long-term growthprospects and profitability of the industry, which has traditionally depended on thelarge packs for profits.

3) ANNUAL SALES:

March Quarter 2013 Financial Results

29-04-2013: 13% Domestic Consumer Sales Growth; PAT (bei) up

18% in March Quarter2013

Hindustan Unilever Limited announced its results for the quarter and financial yearending 31st March 2013.

During the quarter, the Domestic Consumer business grew at 13% with strong 6%

underlying volume growth. Both Home and Personal Care (HPC) and Foods &

Beverages (F&B) registered double digit growth.


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Soaps & Detergents grew 13%; broad based growth

Skin Cleansing delivered a robust performance with double digit volume growth in

Dove, Lux and Lifebuoy. The quarter witnessed price deflation as the benefit of the

lower commodity cost was passed on to consumers. The liquids portfolio was

further strengthened with the relaunch of the Dove Bodywash range.

Laundry maintained its double digit growth across formats. Surf and Rin continueto drive category upgradation, clocking in another quarter of double digit volume

growth. Vim led the solid growth in Household Care.

Personal Products grew 12%; growth accelerates in Hair & Oral Care

In Skin, Ponds and Lakme did particularly well. Ponds Age Miracle sustained its

strong growth momentum while Lakme growth was driven by the Perfect Radiance

range. Fair & Lovely maintained its strong position albeit in a slowing mass skinlightening segment. The facewash portfolio was further strengthened with two newdifferentiated offeringsLakme Nourishing Glow Clean Up and Ponds White

Beauty Tan Removal Scrub.

Hair Care had a very good quarter with strong volume led double digit growth.Clinic Plus grew well driven by its relaunch, Sunsilk accelerated through impactful

activation and Dove growth was led by a strong performance on bottles.TRESemm continues to gain consumer franchise while the initial response to the

Dove Elixir range of premium hair oils has been very positive.

Oral Care registered volume led double digit growth driven by a further step up in

both Close Up and Pepsodent. A range of premium toothbrushes were launchedunder Pepsodent Expert Protection.

Packaged Foods grew 7%

Kissan Ketchups maintained its double digit growth path while growth acceleratedon the Knorr soups portfolio. The initial response to the Soupy Noodles relaunch in

the last quarter has been encouraging. Ice Creams grew modestly impacted by a

slowdown in the market.

Profit After Tax (bei) up 18%

While commodity costs were relatively benign during the quarter, competitiveintensity remained at high levels. We continued to invest behind our brands - A&P

was up 144 Crores (+90 bps) in the quarter. Despite this step up, Profit beforeinterest and tax (PBIT) grew by 17% and PBIT margin improved by 60 bps. Profit


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after tax but before exceptional items, PAT (bei), grew by 18% to Rs. 781 Crores

during the quarter. Net Profit at Rs.787 Crores grew 15%.

Financial Year 2012-13

The Domestic Consumer business grew by 16% with 7% underlying volumegrowth. All segments grew in double digits. Profit before interest and tax (PBIT)

grew by 23% with PBIT margin improving 80 bps. Profit after tax but beforeexceptional items, PAT (bei), grew by 28% to Rs. 3314 Crores with Net Profit at

Rs.3797 Crores growing 41%.

The Board of Directors has proposed a final dividend of Rs. 6 per share for the

financial year ending 31st March, 2013, subject to the approval of the shareholders

at the Annual General Meeting. Together with interim dividend of Rs 4.50 pershare and special dividend of Rs 8 per share, the total dividend for the financial

year ending 31st March, 2013 amounts to Rs. 18.50 per share.

Harish Manwani, Chairman commented: In a challenging environment, we havedelivered broad based competitive growth and margin improvement. We have

continued to invest in strengthening our brands, stepped up innovation and driven

in-market execution and operational efficiencies even harder. At the same time, we

are making good progress on our Sustainable Living Plan agenda. While there arenear term concerns around slowing market growth and inflationary pressures on

consumers, we are confident of the medium to long term growth prospects.

Annual Report 2011-12We work to create a better future every day.

We help people feel good, look good and get more out of life with brandsand services that are good for the good for others. We will inspire people to take

small, everyday actions that can add up to a big difference for the world. We willdevelop new ways of doing business with the aim of doubling the size of our

Company while reducing our environmental impact.

COMPLIANCE WITH THE GOVERNANCE FRAMEWORK

The Company is in compliance with all mandatory requirements of Clause

49 of the Listing Agreement. In addition, the Company has also adopted the non-


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mandatory requirements of constitution of the Remuneration Committee and

establishing of Whistle Blower mechanism.

Secretarial STANDARDS AND SECRETARIAL Audit Report

The Company has undertaken Secretarial Standards Audit for the year 2011-12 for audit of secretarial records and procedures followed by the Company in

compliance with relevant Secretarial Standards issued by the Institute of CompanySecretaries of India. The Secretarial Standards Report is given at page no. 67 of

this annual report. The Company has also undertaken Secretarial Audit for the year2011-12 which, inter alia, includes audit of compliance with Companies Act, 1956

and Rules made under the Act, Listing Agreement and Regulations and Guidelines

prescribed by the Securities and Exchange Board of India. The Secretarial AuditReport is given at page nos. 68 - 69 of this annual report.

SHAREHOLDER INFORMATIONGeneral Body Meetings

Details of last three Annual General Meetings and the summary of Special

Resolutions passed therein are as under: Approval of revision in remuneration to

be paid by way of commission on profits to Non-Executive Directors of theCompany, for a period of five years commencing from 1st January, 2011 and

authorising the Board to determine the amount upto a maximum of Rs. 90 lakhs

in aggregate or 1% of Net Profits, whichever is lower. 31st March, 2011 28th July,2011 3.30 p.m. Birla Matushri Sabhagar, 19, Marine Lines, Mumbai 400 020

No Special Resolution was passed at this meeting.

During the year, a Court Convened Meeting was held on 28th July, 2011 to

consider and approve the Scheme of Arrangement for

transfer of certain assets, liabilities and properties of FMCG Export Business

Division of the Company to its wholly owned subsidiary,

Unilever India Exports Limited in accordance with the Honble High Court

order dated 23rd June, 2011. Accordingly the Resolution for approval of the Scheme of Arrangement was passed by the requisite majority

of shareholders, present and voting, representing 99.99% shares.

Annual General Meeting 2012

Date Monday, 23rd July, 2012


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Venue Unilever House, B. D. Sawant Marg, Chakala, Andheri East, Mumbai

400 099 Time 10.30 a.m. Book Closure Dates for Final Dividend Friday, 6thJuly, 2012 to Friday, 20th July, 2012

Last Date of receipt of Proxy Forms Saturday, 21st July, 2012 before 10.30

a.m. at the Registered Office of the Company

Calendar of financial year ended 31st March, 2012

The meetings of Board of Directors for approval of quarterly financial resultsduring the financial year ended 31st March, 2012 were

held on the following dates:

First Quarter Results 28th July, 2011Second Quarter and Half yearly Results 31st October, 2011

Third Quarter Results 6th February, 2012

Fourth Quarter and Annual Results 1st May, 2012

The domestic consumer business grewby 18% with 9% underlying volume

growth. Profit Before Interest and Tax (PBIT) grew by 25% with PBIT margin

improving 140 basis points. ProfitAfter Tax but before exceptional items,

PAT (bei), grew by 20% to Rs.2,592 crore with Net Profit at Rs.2,691 crore

growing 17%.

A relentless focus on our consumers and in-market execution helped the

business deliver these strong numbers. We are driving bigger, better and faster

innovations with almost 60% of our portfolio touched by innovations during the

year. We continue to drive superiority of our products in the core categories as we

invest to build the categories of tomorrow.

We further expanded our direct retail coverage in 2011. Over the last two

years, we have added one million new stores, doubled our coverage and taken

HUL products and services to some of the remotest corners of the Country. We

now have over one million outlets enrolled in our Perfect Stores programme,

which focuses on better availability and visibility of all our key brands in retail

stores. This programme has been supported by sophisticated analytics (Project iQ)


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which has helped our sales force to drive better execution and higher throughputs

in stores. More importantly, it has helped us improve our overall service levels by

260 basis points during the year, with an even sharper improvement of 400 basis

points in Modern Trade. While it was business as usual on our growth agenda, it

was businessunusual on costs. A sharp focus on cost management enabled us to

continue to invest behind our brands and capabilities while delivering an

improvement in margins. We made good progress against targets in the first year

of our Unilever Sustainable Living Plan. In 2011, we reduced C02 emissions per

tonne of production by 14.7% and water usage in our manufacturing operations by

10.1% compared to our 2008 baseline. HUL has been working for more than a

decade in the area of water conservation in locations which face acute water

shortage. Through the Hindustan Unilever Vitality Foundation, we are working

with NGOs engaged in community projects to conserve water. By 2015, we expect

hundred billion litres of water to be harvested through the projects we have

undertaken. One million people in 180 villages across India will benefit. In most

projects, a 50% rise in crop production is expected. In another initiative, HUL has

entered into partnership with UNICEF and Department of Rural Development,

Government of Madhya Pradesh, to implement hygiene awareness programme in

over 5000 schools in 2012. This will further strengthen the Lifebuoy handwash

programme in India, which is now reaching 30 millionpeople across the Country.

We firmly believe that sustainability has to be at the heart of our business

model and will help us drive faster growth and reduce costs. We see this as a

source of competitive advantage for the business now and in the years ahead.

Your Company has always prided itself for attracting and developing the best

talent. A robust employer brand is crucial to attracting the best talent, and

HUL has emerged as the No.1 employer of choice amongst the top business


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school students and retained the Dream Employer status for the third year

running. We have a holistic AnnualPerformance Cycle encompassing three clear

steps: setting goals, assessing performance and providing merit-based rewards.

This delivers clarity, consistency and encourages living our standards of

leadership. We have always believed that our growth was intrinsically linked with

the growth of our people. We encourage diversity and a performance driven

organisational culture in which people give their best and feel proud to be

part of a successful and a caring organisation. I would like to thank each and every

one of our employees whose commitments and efforts made 2011 yet another

successful year for the Company.


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