INTRODUCTION This project is about Market research in which I have to analyse and compare the marketing trends of the two major FMCG companies HUL and P&G and consumer behaviour towards them on Indian grounds.
OBJECTIVE This project was undertaken with a number of objectives listed below: • To know the various products of P&G and HUL available in India. • Research the marketing trends of HUL and P&G and compare them. • To study the current marketing strategy of both companies. • To analyse the effectiveness of distribution channels of both the companies. •
It also looked into the different factors like quality, nominal prices, availability etc that motivate a customer to buy a particular product.
•
The customer’s preference and behaviour towards the products was studied through questionnaire.
SCOPE OF THE STUDY The scope of the study is limited solely to the areas visited by the researcher for the purpose of research; this may hence not be a total reflection of the penetration of HUL and P&G products all over.
1
COMPANY PROFILE
Introduction Of HUL 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 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.19, 401 crores (financial year 2010 - 2011). 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 €44 billion in 2011. Unilever has about 52% shareholding in HUL.
HISTORY 2
In the summer of 1888, visitors to the Kolkata harbour 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 and other famous brands like Pears, Lux and Vim. Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937. In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati 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 52.10% equity in the company. The rest of the shareholding is distributed among about 360,675 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 liberalisation 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 1996, HUL and yet 3
another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Unilever Limited, 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 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, Unilever Nepal Limited (UNL), and its factory represents the largest manufacturing investment in the Himalayan kingdom. The UNL 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 Icecream business from Cadbury India. As a measure of backward integration, Tea Estates and Doom Dooma, two plantation companies of Unilever, were merged with Brooke Bond. Then in 1994, 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 Icecream Group families and in 1995 the Milkfood 100% Icecream 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, Speciality 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
4
the company's wheat business. In 2002, HUL acquired the government's remaining stake in Modern Foods. In 2003, HUL acquired the Cooked Shrimp and Pasteurised Crabmeat business of the Amalgam Group of Companies, a leader in value added Marine Products exports. HUL launched a slew of new business initiatives in the early part of 2000’s. Project Shakti was started in 2001. It is a rural initiative that targets small villages populated by less than 5000 individuals. It is a unique win-win initiative that catalyses rural affluence even as it benefits business. Currently, there are over 45,000 Shakti entrepreneurs covering over 100,000 villages across 15 states and reaching to over 3 million homes. In 2002, HUL made its foray into Ayurvedic health & beauty centre category with the Ayush product range and Ayush Therapy Centres. Hindustan Unilever Network, Direct to home business was launched in 2003 and this was followed by the launch of ‘Pureit’ water purifier in 2004. In 2007, the Company name was formally changed to Hindustan Unilever Limited after receiving the approval of share holders during the 74th AGM on 18 May 2007. Brooke Bond and Surf Excel breached the the Rs 1,000 crore sales mark the same year followed by Wheel which crossed the Rs.2,000 crore sales milestone in 2008. On 17th October 2008 , HUL completed 75 years of corporate existence in India.
5
Type
Public company
Industry
BSE:HUL Fast moving consumer goods(FMCG)
Founded
1933
Headquarters
Mumbai, India Harish Manwani (Chairman), Nitin Paranje
Key people
(CEO and Managing Director) Home & Personal Care, Foods, Water Purifier, Nutrition
Products
Financial Position
Net Sales Rs. 19,401 Crores (2010-11) Net Profit Rs. 2,306 Crores (2010-11)
Employees
Over 65,000 direct & indirect employees
Parent
Unilever Plc
6
The Proctor and Gamble Company Introduction Founded in 1837, Procter & Gamble is one of the largest consumer products companies in the world. In fiscal year 2007, it had annual revenue of US$ 68.2 billion, and ranked 74th on Fortune 500 list of the world's largest corporations. P&G has operations in more than 80 countries, with more than 300 brands on market in 160 countries. These include beauty care, household care and Gillette products. Three billion times a day, P&G brands touch the lives of people around the world. P&G Greater China business includes Mainland China, Hong Kong and Taiwan, which were established in 1988, 1987 and 1985 respectively. Procter & Gamble entered Mainland China in 1988 by establishing its first joint venture - P&G (Guangzhou) Ltd. Headquartered in Guangzhou, P&G China currently has operations in Guangzhou, Beijing, Shanghai, Chengdu, Tianjin, Dongguan and Nanping, and a technical center in Beijing. In 20 years, P&G has made remarkable achievements in following areas: Building Leading Brands:- P&G is the largest consumer products company in China, with annual sales of US$2 billion. We are in No. 1 market share position in all categories where we compete. Rejoice, Safeguard, Olay, Pampers, Tide and Gillette are currently No.1 brands in China's hair care, personal cleansing, skin care, baby care, powder detergent and male grooming category respectively. Registering Strong Business Growth:- P&G Greater China is one of the fastest growing markets in the world. It is at No.2 position in volume, and among the top 5 markets in value.
7
Building A Best-in-Class Organization:- Together with company business growth, P&G's China staff has grown rapidly. Over 97% of our Chinese workforce is made up by Chinese nationals. P&&G China exports more managerial staff to other P&&G markets than the other way around. Committing to Being A Good Corporate Citizen:- P&G has donated over 80 million yuan (US$10 million) to various charity causes in China, with Project Hope being the largest recipient of P&G corporate charity dExplore Beauty & Grooming
History Procter & Gamble Co. (P&G) is an American company based in Cincinnati, Ohio that manufactures a wide range of consumer goods. In India Proctor & Gamble has two subsidiaries: P&G Hygiene and Health Care Ltd. and P&G Home Products Ltd. P&G Hygiene and Health Care Limited is one of India's fastest growing Fast Moving Consumer Goods Companies with a turnover of more than Rs. 500 crores. It has in its portfolio famous brands like Vicks & Whisper. P&G Home Products Limited deals in Fabric Care segment and Hair Care segment. It has in its kitty global brands such as Ariel and Tide in the Fabric Care segment, and Head & Shoulders, Pantene, and Rejoice in the Hair Care segment. Procter & Gamble's relationship with India started in 1951 when Vicks Product Inc. India, a branch of Vicks Product Inc. USA entered Indian market. In 1964, a public limited company, Richardson Hindustan Limited (RHL) was formed which obtained an Industrial License to undertake manufacture of Menthol and de mentholised peppermint oil and VICKS range of products such as Vicks VapoRub, Vicks Cough Drops and Vicks Inhaler. In May 1967, RHL introduced Clearsil, then America's number one pimple cream in Indian market. In 1979, RHL launches Vicks Action 500 and in 1984 it set up an Ayurvedic Research Laboratory to address the common ailments of the people such as cough and cold.
In October 1985, RHL became an affiliate of The Procter & Gamble Company, USA and its name was changed to Procter & Gamble India. In 1989, Procter & Gamble India launched Whisper - the breakthrough technology sanitary napkin. In 1991, P&G India launched Ariel detergent. In 1992, The Procter & Gamble Company, US increased its stake in Procter & Gamble India to 51% and then to 65%. In 1993, Procter & Gamble India divested the 8
Detergents business to Procter & Gamble Home Products and started marketing Old Spice Brand of products. In 1999 Procter & Gamble India Limited changed the name of the Company to Procter & Gamble Hygiene and Health Care Limited. P&G Home Products Limited was incorporated as 100% subsidiary of The Procter & Gamble Company, USA in 1993 and it launched launches Ariel Super Soaker. In the same year Procter & Gamble India divested the Detergents business to Procter & Gamble Home Products. In 1995, Procter & Gamble Home Products entered the Haircare Category with the launch of Pantene Pro-V shampoo. In 1997 Procter & Gamble Home Products launches Head & Shoulders shampoo. In 2000, Procter & Gamble Home Products introduced Tide Detergent Powder - the largest selling detergent in the world. In 2003, Procter & Gamble Home Products Limited launched Pampers - world's number one selling diaper brand. Today, Proctor & Gamble is the second largest FMCG company in India after Hindustan Lever Limited. Type
Public
Industry
NYSE:PG Fast moving consumer goods(FMCG)
Founded
1837
Headquarters
Cincinnati,Ohio,US
Key people
Bob McDonald (President andCEO)
Products
Home & Personal Care, Foods
Financial Position
Net Sales $ 82,559 Million (2010-11) Net Profit $ 15,818 Million (2010-11)
OVERVIEW
9
•
Hindustan Unilever Limited (HUL) (BSE: HUL) is India's largest FMCG company, touching the lives of two out of three Indians with over 20 distinct categories in home & personal care products and food & beverages. They endow the company with a scale of combined volumes of about 4 million tones and sales of over.
Rs.19401
Crores.HUL is also one of the country's largest exporters; it has been recognized as a Golden Super Star Trading House by the Government of India.
•
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. .
•
The Anglo-Dutch company Unilever owns a majority stake (52%) in Hindustan Unilever Limited.
•
It is headquartered in Mumbai, India and has an employee strength of over 15,000 employees and contributes for indirect employment of over 52,000 people. The company was renamed in June 2007 to “Hindustan Unilever Limited”.
•
In 2007, Hindustan Unilever was rated as the most respected company in India for the past 25 years by Business world, one of India’s leading business magazines, The rating was based on a compilation of the magazines annual survey of India’s Most Reputed Companies over the past 25 years. 10
•
Hindustan Unilever's distribution covers over 1 million retails outlets across India directly and its products are available in over 6.3 million outlets in India, i.e., nearly 80% of the retail outlets in India. It has 39 factories in the country. Two out of three Indians use the company’s products and HUL products have the largest consumer reach being available in over 80 per cent of consumer homes across India.
11
OVERVIEW
•
Procter & Gamble Co. (P&G, NYSE: PG) is a worldwide producer of consumer, household and pharmaceutical goods (in addition, P&G manufactures chemicals as input for its own products as well as for the chemical processing industry, and P&G produces Soap Operas as part of its elaborate marketing strategy in order to hook female customers up to its brands).
•
Today, P&G markets its products to more than five billion consumers in 130 countries. The company has on-the-ground operations in over 70 countries around the world, and employs more than 106,000 people.
•
P&G is a Fortune 500 American multinational corporation headquartered in Cincinnati, Ohio. P&G ranks #39 on the list, before its main competitor Johnson & Johnson (#57) and Kimberly-Clark (#142). P&G also outperforms Unilever and Nestle, the company’s main competitors overseas.
•
In early 2010, P&G reached 4th largest corporation in the US by market capitalization, surpassed only by Exxon Mobil, Microsoft, and Walmart.
12
•
According to the Nielsen Company, in 2007 P&G spent more on U.S. advertising than any other company; the $2.62 billion spent by P&G is almost twice as much as that spent by General Motors, the next company on the Nielsen list. P&G was named 2008 Advertiser of the Year by Cannes International Advertising Festival
•
A single word can sum up the core of what Procter & Gamble (P&G) is all about— brands. Think of some of the most well-known household products out there: Tide, Crest, Gillette, Pantene, Pampers, Olay, Bounty, Oral B, Bounty Febreeze, Old Spice, Always, PuR. The list could go on, and on, and on, until we’d covered every one of the almost 300 brands under the P&G umbrella. Some of them (Crisco, Crest, Tide) are P&G inventions while others (Charmin, Gillette, Olay) have been acquired over the course of more than a century and a half of business. Of that number, an incredible 23 of P&G’s brands produce around $1 billion each per year in revenue.
•
Waiting to bump the billion-dollar cadre ever higher, however, are some 20 further brands that each rake in more than $500 million annually and are being primed to make the push across the Rubicon. All of this is ample evidence, if any were required of a firm that has grown its net sales to $79 billion in 2009, that P&G is, in its own words (and capitalization), “Designed to Lead.” Indeed, P&G thrives on loyal customers and strives to put out products that merit devotion in 180 countries the world over. It is ranked No. 20 on the Fortune 500 in 2009 and is indexed in both the S&P 500 and the Dow Jones Industrial Average
13
14
Purpose, Principles & Vision of HUL Our corporate purpose states that to succeed requires "the highest standards of corporate behaviour towards everyone we work with, the communities we touch, and the environment on which we have an impact." Always working with integrity Conducting our operations with integrity and with respect for the many people, organisations and environments our business touches has always been at the heart of our corporate responsibility. Positive impact We aim to make a positive impact in many ways: through our brands, our commercial operations and relationships, through voluntary contributions, and through the various other ways in which we engage with society. Continuous commitment We're also committed to continuously improving the way we manage our environmental impacts and are working towards our longer-term goal of developing a sustainable business. Setting out our aspirations Our corporate purpose sets out our aspirations in running our business. It's underpinned by our code of business Principles which describes the operational standards that everyone at Unilever follows, wherever they are in the world. The code also supports our approach to governance and corporate responsibility. Working with others We want to work with suppliers who have values similar to our own and work to the same standards we do. Our Business partner code, aligned to our own Code of business principles, comprises ten principles covering business integrity and responsibilities relating to employees, consumers and the environment.
15
Vision Unilever products touch the lives of over 2 billion people every day – whether that's through feeling great because they've got shiny hair and a brilliant smile, keeping their homes fresh and clean, or by enjoying a great cup of tea, satisfying meal or healthy snack.
A clear direction The four pillars of our vision set out the long term direction for the company – where we want to go and how we are going to get there: •
We work to create a better future every day
•
We help people feel good, look good and get more out of life with brands and services that are good for them and good for others.
•
We will inspire people to take small everyday actions that can add up to a big difference for the world.
•
We will develop new ways of doing business with the aim of doubling the size of our company while reducing our environmental impact.
We've always believed in the power of our brands to improve the quality of people’s lives and in doing the right thing. As our business grows, so do our responsibilities. We recognise that global challenges such as climate change concern us all. Considering the wider impact of our actions is embedded in our values and is a fundamental part of who we are.
16
Purpose, Principles & Vision of P&G Foundation Taken together, our Purpose, Values and Principles are the foundation for P&G’s unique culture. Throughout our history of over 170 years, our business has grown and changed while these elements have endured, and will continue to be passed down to generations of P&G people to come. Our Purpose unifies us in a common cause and growth strategy of improving more consumers’ lives in small but meaningful ways each day. It inspires P&G people to make a positive contribution every day. Our Values reflect the behaviors that shape the tone of how we work with each other and with our partners. And Our Principles articulate P&G’s unique approach to conducting work every day. Purpose
P&G brands and P&G people are the foundation of P&G’s success. P&G people bring the values to life as we focus on improving, the lives of the world’s consumers.
17
Values Integrity •
We always try to do the right thing.
•
We are honest and straightforward with each other.
•
We operate within the letter and spirit of the law.
•
We uphold the values and principles of P&G in every action and decision.
•
We are data-based and intellectually honest in advocating proposals, including, recognizing risks.
Leadership •
We are all leaders in our area of responsibility, with a deep commitment to delivering leadership results.
•
We have a clear vision of where we are going.
•
We focus our resources to achieve leadership objectives and strategies.
•
We develop the capability to deliver our strategies and eliminate organizational barriers.
Ownership •
We accept personal accountability to meet our business needs, improve our systems and help others improve their effectiveness.
•
We all act like owners, treating the Company’s assets as our own and behaving with the Company’s long-term success in mind.
Passion for Winning •
We are determined to be the best at doing what matters most.
•
We have a healthy dissatisfaction with the status quo.
•
We have a compelling desire to improve and to win in the marketplace.
18
Ownership •
We respect our P&G colleagues, customers and consumers, and treat them as we want to be treated.
•
We have confidence in each other’s capabilities and intentions.
•
We believe that people work best when there is a foundation of trust.
Principles We Show Respect for All Individuals •
We believe that all individuals can and want to contribute to their fullest potential.
•
We value differences.
•
We inspire and enable people to achieve high expectations, standards and challenging goals.
•
We are honest with people about their performance.
The Interests of the Company and the Individual Are Inseparable •
We believe that doing what is right for the business with integrity will lead to mutual success for both the Company and the individual. Our quest for mutual success ties us together.
•
We encourage stock ownership and ownership behavior.
We Are Strategically Focused in Our Work •
We operate against clearly articulated and aligned objectives and strategies.
•
We only do work and only ask for work that adds value to the business.
•
We simplify, standardize and streamline our current work whenever possible.
Innovation Is the Cornerstone of Our Success •
We place great value on big, new consumer innovations.
19
•
We challenge convention and reinvent the way we do business to better win in the marketplace.
We Value Personal Mastery •
We believe it is the responsibility of all individuals to continually develop themselves and others.
•
We encourage and expect outstanding technical mastery and executional excellence.
We Seek to Be the Best •
We strive to be the best in all areas of strategic importance to the Company.
•
We benchmark our performance rigorously versus the very best internally and externally.
•
We learn from both our successes and our failures.
We Are Externally Focused •
We develop superior understanding of consumers and their needs.
•
We create and deliver products, packaging and concepts that build winning brand equities.
•
We develop close, mutually productive relationships with our customers and our suppliers.
•
We are good corporate citizens.
•
We incorporate sustainability into our products, packaging and operations.
Mutual Interdependency Is a Way of Life •
We work together with confidence and trust across business units, functions,categories and geographies.
•
We take pride in results from reapplying others’ ideas.
•
We build superior relationships with all the parties who contribute to fulfilling our Corporate Purpose, including our customers and suppliers, universities and governments.
20
PRODUCTS
21
BrandsFood brands HUL is one of India’s leading food companies. Our passion for understanding what people want and need from their food - and what they love about it - makes our brands a popular choice
Brooke Bond 3 Roses Exquisite taste in a cup of tea that is also good for your health!
Annapurna Partnering with the mom in nurturing her dreams, Annapurna Atta is aimed at helping her provide wholesome tasty nutrition to her family.
Red Label Brooke Bond Red Label… 'Chuskiyaan Zindagi ki'
Brooke Bond Taaza Brooke Bond Taaza
22
Brooke Bond Taj Mahal Brooke Bond Taj Mahal is an exclusive selection of teas for the discerning consumer.
Bru Bru se hoti hain khushiyaan shuru…
Kissan Eat Happily. Grow Happily.
Knorr Knorr helps families make meal times special, nutritious, tasty and healthy.
Kwality Wall’s A good honest scoop of daily pleasure.
23
Lipton Lipton has a range of vitality teas that truly encompass the goodness of tea.
Modern Modern – A Wholesome & Nourishing, Hygienically produced & Reliably Safe Bread
Brooke Bond Sehatmand BB Sehatmand – Jo Sehatmand Woh Aage Har Dum!! (One who is healthy is a step ahead…. Always)
24
Home care brands HUL has a diverse portfolio of brands offering home care solutions for millions of consumers across India.
Active Wheel New Active Wheel – with Power of lemons and freshness of thousands of flowers!
Cif Cif- the best cleaner to let you shine.
Comfort The world’s largest fabric conditioner brand.
Domex The sheer power of Domex bleach gives you the confidence you need, eradicating all known germs.
Rin 25
Rin provides ‘best in class whiteness’ which is demonstrable.
Sunlight Sunlight is a color care brand
Surf Excel Giving your kids the freedom to get dirty and experience life, safe in the knowledge that Surf Excel will remove those stains
Vim Created in 1885, the Vim brand is still innovating and using the magic of natural ingredients to create unbeatable results over a hundred years later.
26
Personal Care Brands Our personal care brands, including Axe, Dove, Lux, Pond's, Rexona and Sunsilk, are recognised and love by consumers across India. They help consumers to look good and feel good – and in turn get more out of life.
Aviance Aviance enables women actualize their unique potential through expert customized beauty solutions.
Axe Axe with Best Quality Fragrance
LEVER Ayush Therapy LEVER Ayush aims to help a new generation of Indians rediscover everyday health and vitality through customized Ayurvedic solutions.
Breeze Breeze, with the goodness of glycerine gives soft, fragrant and smooth skin.
27
Clear New CLEAR with Nutrium 10 goes 3 layers deep** into the scalp to nourish such that Dandruff Wont Come Back*!
Clinic Plus Clinic Plus - makes hair inside strong, outside long!
Closeup Freshness that brings you Closer
Dove Dove stands for real beauty. All around the world, Dove is making real women feel more beautiful!
Fair & Lovely More than 30 years ago, a unique brand was born. Wrapped within a humble lavender tube, it went on to become the World’s No.1 Fairness cream. 28
Hamam Holistic skin care experiences perfected over the ages to deliver healthy, beautiful skin
Lakme Lakme is an ally to the Indian Woman and inspires her to express her unique beauty and sensuality. Thus, enabling her to realize the potency of her beauty.
Lifebuoy Lifebuoy is available in multiple variants in soaps and specialist formats such as liquid handwash, catering to the entire family.
Liril 2000 Liril 2000-Now come closer to your loved ones
Lux Lux – For soft and smooth skin!
29
Pears Pears – the purest and most gentle way to skincare!
Pepsodent Pepsodent India is committed to improve the overall Oral health of Indians.
Pond’s Get the expert to look after your skin
Rexona Rexona gives you silky skin irresistible to touch that keeps the romance alive!
Sunsilk Sunsilk has had a re-style!
30
Vaseline Your skin is amazing. It deserves to be treated as such.
Water
Pureit is the world’s most advanced in-home water purifier. Pureit, a breakthrough offering of Hindustan Unilever (HUL), provides complete protection from all water-borne diseases, unmatched convenience and affordability. Pureit’s unique Germkill Battery technology kills all harmful viruses and bacteria and removes parasites and pesticide impurities, giving you water that is "as safe as boiled water". It assures your family 100% protection from all water-borne diseases like jaundice, diarrhea, typhoid and cholera. What’s more, it doesn’t need gas, electricity or continuous tap water supply. Pureit not only renders water micro-biologically safe, but also makes the water clear, odourless and good-tasting. Pureit does not leave any residual chlorine in the output water. The output water from Pureit meets stringent criteria for microbiologically safe drinking water, from one of the toughest regulatory agencies in the USA, EPA (Environmental Protection Agency). The performance of Pureit has also been tested by leading scientific and medical institutions in India and abroad. This patented technological breakthrough has been developed by HUL. This state-of –the-art engineering developed by a team of over 100 Indian and international experts from HUL and Unilever Research Centres has made Pureit possible at the consumer price of just Rs. 2000
31
Pureit runs with a unique ‘Germkill Battery Kit’™ that typically lasts for 1500 litres* of water. The ‘Germkill Battery Kit’™is priced at Rs.365. This means consumers will get 4 litres of water that is ‘as safe as boiled water’ ™ for just one rupee, which works out to an extremely affordable 24 paise per litre. Pureit in-home purification system uses a 4 stage purification process to deliver “as safe as boiled water” without the use of electricity and pressurized tap water. Pureit purifies the input drinking water in four stages, namely; 1. Micro-fiber MeshTM - Removes visible dirt 2. Compact Carbon TrapTM - removes remaining dirt, harmful parasites & pesticide impurities 3. Germkill ProcessorTM – uses 'programmed chlorine release chlorine technology' and its stored germkill process targets and kills harmful virus and bacteria 4. PolisherTM – removes residual chlorine and all disinfectant by-products, giving clear odourless and great tasting water 5. Battery Life Indicator - Ensures total safety because when the germkill power is exhausted, the indicator turns red, warning you to replace the battery Advanced Auto-Switch off - In case, the battery is not changed when it turns fully red, as an additional assurance of safety, the advanced Auto-Switch off will automatically switch-off the flow of water. Protect your loved ones with a Pureit today!
32
Nutrition We've created policies and guidelines to ensure we always act responsibly when it comes to health and nutrition. Acting responsibly Millions of people around the world enjoy the foods and drinks we create. So the ingredients we use, the formulations, and the way we advertise and market our brands can potentially make a big impact on global health. We aim to act responsibly and have a strong nutrition policy. We've also developed a carefully considered approach to health and nutrition which includes: •
encouraging a balanced diet with the right amount of proteins, carbohydrates, fats, vitamins and minerals
•
developing a growing range of low fat, low sugar, low calorie alternatives, plus more 'active health' products
•
marketing responsibility our foods and beverages and helping to reduce overconsumption
•
helping people understand the nutritional benefits of our products
•
creating products that reflect the fact that people will only eat foods that they enjoy
•
having sound specific evidence underpinning all our claims
•
making significant contributions to researching the relationship on nutrition and health, such as the effects of good fats (unsalted fats), fruits & vegetables and vitamins and minerals
33
Clear Communication We've also developed a set of marketing principles to ensure we're always 'honest, decent and truthful' in our communication – which include special principles on advertising to children. As well as excluding anything that appears to condone over-consumption in our marketing, we also prohibit anything that undermines the promotion of healthy, balanced diets and lifestyles, or misrepresents snacks as meals. We will also make sure that any claims made in our marketing about any of our products are supported by scientific evidence. Under our principles for marketing to children, we ensure our advertisements don't convey misleading messages, don't undermine parental influence, don't encourage pester power, don't suggest time or price pressure, don't encourage unhealthy dietary habits, and don't blur the boundary between promotion and content. In addition, as well as supporting the development of international self-regulatory codes for all marketing and advertising, we recently agreed to voluntarily restrict all paid marketing communications (with the exception of packaging) directed primarily at children under the age of six years. We believe that by putting these principles in place, we're not only doing the right thing, but we're being proactive through voluntary self-regulation – instead of simply reacting to external pressures.
34
HEALTH, HYGIENE & BEAUTY Unilever's vitality mission is a mandate to help people feel good, look good and get more out of life. At the heart of this mission is hygiene and health through hygiene. At The Heart Of Our Mission What does 'vitality' really mean to billions of people in the world? How does it manifest itself in their lives? What does it add to their lives when it is present? What are the consequences when it is absent? The desire to be clean, active, energetic and healthy is common to every person, whether young or old, whether rich or poor. To billions in the developing world, health is simply the absence of illness. For them, health is the ability to go to work, to provide a square meal for their families. For their children, health is the ability to play, to go to school, to work towards a better future. For the affluent, health is more than just physical well being. For them the signs of good health – being active, energetic, feeling good, and looking good – allow them to get the most out of life. Yet for the millions of mothers who lose their children to diarrhoea and upper respiratory infections, health is simply about staying alive. New Risks "The risks are likely to intensify," says Sally Bloomfield, a member of the International Scientific Forum on Home Hygiene (IFH), which receives an educational grant from Unilever. "As populations age and the incidence of immuno-deficient diseases such as AIDS rises, more people will be vulnerable to the consequences of poor hygiene." "Infectious diseases are also hopping around the world quicker than before due to globalisation, as we saw with SARS and now with Swine Flu. In some cases, you can't treat these with antibiotics as they're viral; others are bacterial but resistant to antibiotics, such as the hospital superbug MRSA (Methicillin Resistant Staphylococcus Aureus)." New pathogens – agents that can cause disease – are also constantly appearing. Since the 1970s, at least one new pathogen has been recorded each year. Good hygiene is often the only way to avoid many pathogens and their consequences.
35
A Simple Solution One of the main stumbling blocks, says Dr Val Curtis at the London School of Tropical Medicine and Hygiene, is that most people do not use one of the world's most basic and widely available home hygiene products – the humble bar of soap. "Hands are a superhighway for transmitting germs, but most people don't wash their hands with soap and water at key times," she explains. "In the UK, for example, only 30% of people wash their hands after going to the toilet and only 43% after changing a nappy." The statistics in developing countries are similar. Health Through Hygiene So what's Hindustan Unilever doing? One of our oldest brands, Lifebuoy, exemplifies our commitment to champion health through hygiene for everyone. Healthy living Washing your hands with anti-bacterial soap is one way of helping to prevent the spread of disease.
36
Beauty & Grooming
Beauty & Grooming Explore Beauty & Grooming Brands
Learn more about Braun
37
Learn more about Wella
Learn more about MACH3
Learn more about Always
Learn more about CoverGirl
Learn more about Olay
Learn more about Pantene
38
Learn more about Herbal Essences
Learn more about Rejoice
Learn more about Fusion
Learn more about Safeguard
Learn more about Venus
Learn more about Head & Shoulders
39
Learn more about Oral-B
Learn more about Dolce & Gabbana Fragrances
Learn more about Tampax
Learn more about SK-II
Learn more about Gillette
40
Learn more about HUGO BOSS Fragrances
Learn more about Crest
Learn more more about Prestobarba/Blue
Household Care Explore Household Care Brands
Learn more about Pampers
Learn more about Febreze
41
Learn more about Duracell
Learn more about Ariel
Learn more about Swiffer
Learn more about Tide
Learn more about Downy
42
Learn more about Gain
Learn more about Mr. Clean
Learn more about Eukanuba
Learn more about Prilosec OTC
Learn more about Bold
43
Learn more about Charmin
Learn more about Vicks
Learn more about Ace
Learn more about Pringles
Learn more about Cascade
44
Dash
Learn more about Bounty
Learn more about Iams
Learn more about Dawn
45
MARKETING STRATEGY AND MARKET SHARE OF HUL
As per an article titled “Cheaper products eat into HUL market share” in ET on 18 July 2009 Hindustan Unilever (HUL), India's largest consumer products company, lost its grip in the market for almost everything from soaps and shampoos to toothpastes and skin-creams during april-may.
The company lost value market share across product categories by up to 6% year-on-year during April-May, according to numbers released by market research firm A C Nielsen. Analysts attributed this loss to factors like: Consumers switching to cheaper regional brands (Godrej No. 1,Santoor). Lack of product innovations. Stable pricing by rivals The company's focus on high-value products(Ponds and dove).
Besides Godrej No 1, Reckitt Benckiser's Dettol in soap, Colgate and Dabur’s Meswak and Babool in toothpaste and Vatika in shampoos gained at the cost of HUL.
Regional brands like Chik in shampoos, Dyna and Santoor in soaps, and Nirma and Ghadi in detergents swiftly raised trade margins and extended credit period for the trade.
In detergents, while HUL increased prices, competition from smaller players at lower price points led to its market share dipping both in terms of volume and value.
Companies that focused on affordable price points such as Rs 2, Rs 5 and Rs 10 also fared well. HUL also diluted its brand positioning in some cases, said analysts. Reckitt Benckiser's Dettol, for example, has gained because its anti-germ positioning has remained constant, while HUL has taken Lifebuoy through several positioning changes.
The company has already started firefighting though. It is now pushing volumes ahead of margins. Corrective measures include: 46
grammage correction. lower priced unit packs. increased promotions for value brands.
47
Wheel soap's Rs 10 pack now weighs 275 gms, up from 250 gms. The Lux soap too now weighs 25 gms more than earlier at the same price point of Rs 18.
Soaps like Lifebuoy, Liril, Hamam, Rexona, Breeze and Lux have been given new packaging and fragrance.
The company has also hiked retailer margins in some categories, offering 8% incremental margins. In addition, it is investing heavily on smaller soap brands like Rexona, Breeze and Hamam and reducing prices of detergent brands Wheel and Surf.
Nielsen had recently updated its sample size from 16,000 to close to 23,000 stores and included uncovered channels such as modern trade and institutional areas like canteen stores, besides increasing its footprint in rural pockets following companies complaining about 'discrepancies' in its data. HUL's strategy to relaunch all the brands targeting the masses, especially in the personal care segment has shown some positive result and is likely to do better
48
MARKETING STRATEGY AND MARKET SHARE OF P & G Though we’re already bullish with regards to Procter & Gamble with our $84 Trefis price estimate of its stock, which is at a 30% premium to its current market price at close to $65, CEO Bob McDonald at a recent analyst meeting talked about some key measures that P&G is undertaking to head off and win market share from competitors like Unilever, Clorox, and Colgate-Palmolive Co. in the consumer products businesses and companies like L’Oreal , Avon and Estee Lauder in cosmetics and beauty. What exactly is P&G doing right? We highlight some of the key points driving P&G’s growth strategy. 1) Selling to More Consumers in Existing Markets To realize its goal of acquiring one billion additional consumers by 2014-15, it comes as no surprise that P&G is focusing on the two most populous nations in the world – China and India. While targeting volumes at lower price-points, P&G has launched lower-priced product extensions of its global premium brands such as Tide and Gillette targeted at consumers with lower disposable income levels in these economies and expanded its distribution network to cover the previously inaccessible rural areas. While the U.S. and Western Europe continue to constitute over 41% and 21% of sales respectively, going forward much of the growth is expected to come from the emerging economies, which have been exhibiting robust doubledigit growth primarily on account of expanding middle class with rising disposable income levels and high population growth rates. 2) Selling More Products to the Existing Consumers Very apt for this period of uncertainty, under McDonald’s leadership P&G has set out on a relative performance goal – to grow 1-2 percent points faster than global market growth, of which half is expected to come from market share gains (a reasonable 0.1%-0.2% gain in share per year for the next 5 years) in the existing product categories while the other half shall be drawn from “white space” growth i.e. launching more product categories in more countries and launching product extensions of established brands. While P&G competes in 35 product categories in the U.S., it is only present in an average of 19 product categories globally. The “white space” growth primarily focused on launching more
49
product categories in more countries. P&G is targeting expansion of the global average to presence in 24 product categories by 2014-15. 3) Selling Products through More Outlets P&G currently sells broadly through four channels: 1) mass volume retail (Wal-Mart, etc.), 2) mom-and-pop stores (which dominate emerging markets), 3) wholesale and 4) modern retail stores. P&G is focusing on expansion in the international pharmacy and e-commerce channels. This shall contribute to P&G products being available at more outlets. P&G is essentially relying on cost efficiencies leading to operating margin improvements of the tune of 350-450 basis points to fuel the above top-line growth. While most of these cost savings are expected to come from scale, such as sourcing of larger volumes of raw materials at more competitive prices and dilution of SG&A over larger volumes, P&G is also targeting improvements in production planning and business-planning cycle time to improve operating margins. If P&G were to realize the above stated strategy, we can reasonably expect incremental gain in market share of the tune of 1% in all product categories in 2011-15 over and above our current estimates. We estimate this to lead to a 4% potential upside to our current $84 Trefis price estimate of Procter & Gamble’s stock.
50
Distribution Channel Of Hul- In Urban Area
51
Distribution Channel Of Hul- In Rural Area
52
Distribution Channel Of P&G- In Urban Area
53
Distribution Channel Of P&G- In Rural Area
54
SUSTAINABILITY STRATEGY OF HUL We have a long-standing set of values and principles that guides our behaviour. These values underpin our approach to sustainability. We have always been a business driven by a strong set of values. Today those values are as important as ever. We now know that the well-being of society and the environment is critical to our ability to grow. Sustainability Strategy Sustainability is central to our business strategy. Engaging with our stakeholders Engagement ensures we are listening to and addressing the right issues in the right way. Governance Our strategy is supported by company-wide governance and management structures. Commitments Our commitment to sustainability and responsible business practice. External commentary External comments we have received on our sustainability strategy. Sustainability strategy Unilever’s vision is to double the size of its business while reducing the overall impact on environment. This new vision recognises that the world is changing, populations are growing and the rise in incomes is fuelling a growth in the demand for consumer products. Products like ours rely on an increasingly constrained set of natural resources, whether it is fuel, water, or other raw materials. In Hindustan Unilever Limited (HUL), the principle of Corporate Responsibility (CR) is an integral part of our commitment to all our stakeholders – consumers, customers, employees, the environment and the society that we operate in. Today, India is battling multiple issues like water scarcity, poverty, and problems arising out of low awareness of health, hygiene, and nutrition. If these issues are not addressed soon, they will create insurmountable barriers to business growth. We believe that helping society prosper
55
and ensuring a sustainable future for the planet goes hand in hand with our goal of ensuring growth that is competitive, profitable, and sustainable for our organisation. Our contributions have to be substantial and sustainable, which is why we are not just banking on our philanthropic programmes, but are transforming our core business practices as well. Even the seemingly small innovations in our brands and business processes can lead to a big difference in society as we touch the lives of two out of every three Indians.* For example, if one household uses Surf Excel detergent, it can conserve two buckets of water per wash. A million Indian households using Surf Excel can save enough water for meeting the basic hygiene needs of many Indians. Thus, small individual actions multiplied with our large consumer base will make a big difference in combating the issues society faces.
We will further demonstrate that successful business strategies are driven by responsible business practices. The key to this approach is developing a CR framework which integrates the social, economic, and environmental agenda with our business priorities – growing markets, maintaining the competitive edge, enjoying goodwill in the communities we operate in, and building trust and an exceptional reputation. Hence, in the future, the three cornerstones for CR integration with business at HUL will be: - Growing markets responsibly: We will address issues related to hygiene and nutrition through product innovations and awareness. Gathering information about the concerns expressed by consumers, communities, and stakeholders can help us identify opportunities for innovation at the category, brand, and marketing plan level. We have a very strong and trusted position in India and we can leverage this to our competitive advantage. - Ensuring sustainable practices in our operations: To secure a thriving future, we need to establish sustainable sources for raw materials. Being a company that is heavily dependent on water, agriculture, fuels and petrochemicals, we must plan now for a future in which water could be scarce, agriculture could be under pressure, and fuels will be expensive. Our consumers add up to two-thirds of the Indian population, hence addressing sustainability issues is a high priority.
56
- Building a good reputation through responsible leadership: CR is one of the key components of reputation and trust. A good reputation can be a major competitive advantage and can build employer brand and consumer loyalty.
57
Engaging With Our Stakeholders Listening to others and learning from our stakeholders informs our decision-making, strengthens our relationships and helps us succeed as a business. Stakeholder engagement for identifying issues that are material to us: We appointed SustainAbility International to conduct stakeholder engagement on our behalf. They analysed and assimilated the expectations of stakeholders regarding issues that matter to them. These expectations were similar to the areas identified by us, where HUL's contribution could create a significant impact. Scoping the areas for intervention While the issues are many, it is necessary to address them in a systematic manner to make a real difference. Instead of spreading thin across all issues, we have chosen to work on five areas to ensure a deep impact. These areas have been arrived at using the output from our stakeholder engagement process and areas which we are poised to address through our business. Key messages from stakeholders - ‘Target. Allocate resources. Achieve those targets. This is more critical than just being visible & talking about it.’ - ‘We feel that some Indian companies can be leaders in their respective sectors. HUL has the potential to be such a leader.’ - ‘Invest for your markets – don't do social work, it isn't your ballgame.’ - ‘Please make money out of it. When you make money out of it, things are going to change.’
58
59
Corporate Governance We aim to have strong governance structures in place to manage our social and environmental responsibilities carefully and thoughtfully. Corporate Responsibility at HUL is led by the CEO and the Management Committee (MC) of the company. The MC governs the sustainability strategy with a view of key strategic approaches and seeks reports on impacts and efforts against clear targets. Each of the nine cells (in the daigram shown in Sustainability strategy section) is owned by an MC member. For the execution of the strategy there is a team of 12 Sustainability Governing Council (SGC) members based on their respective functions. Sustainability Governing Council The Sustainability Governing Council is responsible for: •
Recommending sustainability priorities for approval by the MC and monitoring its progress
•
Recommending HUL's positions on critical issues for approval by MC
•
Receiving stakeholder feedback
The role of the SGC is formalised, with a clear mandate and terms of reference outlining its mission, purpose, membership, meeting schedule, and reporting systems.
60
Commitments Sustainability is defined as “meeting the needs of the present without compromising the ability of future generations to meet their needs”.
61
External commentary We shared our sustainability strategy with leading external experts from diverse backgrounds. Below you can read their comments on our sustainability strategy. View of leading external experts on HUL’s sustainability strategy ‘The long-term strategy and roadmap provides a comprehensive approach towards meeting future sustainability challenges, especially with respect to resources such as water and energy.’ - Shirish Sinha, Head Climate Change & Energy Programme, WWF ‘We are happy with the focus on linking the business processes with corporate responsibility. Social impact has to be central to business processes, which is brought about by HUL's strategy. Corporate responsibility via business strategies is the way forward.’ - Ibrahim H. Rehman, Director, Social Transformation Division, TERI ‘The tying up of your strategic threads is excellent. Ensure that you carry it through action!’ - George C. Varughese, President, Development Enterprises, Development Alternatives
62
SUSTAINABLE STRATEGY, GOALS OF P & G At P & G, we are focuing our efforts where we can make the most meaningful difference in both environmental and social Sustainability Our commitment begins with P&G’s Purpose, Values and Principles, in which Sustainability is embedded, and manifests itself in a systemic and long-term approach. We strive to make our actions matter. In 2007, P&G established five strategies for Sustainability and set goals to be achieved by 2012. In March of 2009, in recognition of the progress we’ve made so far and to emphasize our commitment to achieving even more significant wins, we increased each of our goals. It’s a part of P&G’s culture to continuously raise the bar, and our work in Sustainability is no exception. Our five strategies are as follows:
Delight the consumer with sustainable innovations that improve the environmental profile of our products. GOAL Develop and market at least $50 billion in cumulative sales of “sustainable innovation products,” which are products that have an improved environmental profile.(1) PROGRESS
Cumulative Sales
(in billions of U.S. dollars) since July 2007 Cumulative sales of sustainable innovation products $13.1 Cumulative sales of sustainable innovation products $13.1
Improve the environmental profile of P&G’s own operations. GOAL Deliver an additional 20% reduction (per unit production) in CO2 emissions, energy consumption, water consumption and disposed waste from P&G plants, leading to a total reduction over the decade of at least 50%.
63
PROGRESS
Since
Since
(percent reduction per unit production) Energy Usage CO2 Emissions Waste Disposal Water Usage
July 2007 11% 10% 30% 13%
July 2002 48% 52% 53% 52%
Improve children’s lives through P&G’s social responsibility programs. GOAL Enable 300 million children to Live, Learn and Thrive.(2) Prevent 160 million days of disease and save 20,000 lives by delivering 4 billion liters of clean water in our Children’s Safe Drinking Water program.(3) PROGRESS LIVE, LEARN AND THRIVE Number of Children Reached CHILDREN’S SAFE DRINKING WATER Liters of Clean Water Delivered Days of Disease Prevented Lives Saved
Since July 2007 135 million 930 million 39 million > 5,200
Engage and equip all P&G ers to build Sustainability thinking and practices into their everyday work.
Shape the future by working transparently with our stakeholders to enable continued freedom to innovate in a responsible way.
THE DIRECT MARKETING CASE Against Tide, but at what cost to Rin?
64
As a part of its marketing strategy an audacious advertisement campaign for Rin was started by Hindustan Unilever Limited (HUL), on 26 Feb,2010, by pitching and comparing it with Tide Naturals, a Procter & Gamble (P&G) product.
It became a hot topic of discussion for intellectual property rights (IPR) enthusiasts. The ad is in the eye of a legal storm, and has been described by some as an ego battle between the two FMCG conglomerates.
Part one of this was staged by HUL before the Chennai High Court when it filed a suit alleging that P&G’s claim that its detergent ‘Tide Naturals’ contained lemon and sandalwood was untrue.
Having convinced the court that it was only synthetic compounds that smelled like lemon and sandalwood in ‘Tide Naturals’ and not the real stuff, HUL got the court to direct P&G to insert a disclaimer in all its ads to that effect.
The scene then moved to the television screens across the nation which started airing a new Rin ad by HUL which compared the white school uniforms of two boys, washed in Tide and Rin respectively. While the shirt washed in Rin sparkled, the one washed with Tide was yellowish.
It was P&G who went to the Calcutta High Court this time, alleging disparagement and infringement of its trademark ‘Tide’. It was also pointed out by P&G that the disputed ad used a packet of ‘Tide Naturals’ in its visuals, but used ‘Tide’ in the voiceover.
The commercial was pulled off air in 8 days after the Calcutta high Court ordered HUL to stop airing the commercial on various grounds including disparagement.
The rules in the game of comparative advertisements have been laid down both by the courts and also prescribed under Section 29 of the Trade Marks Act, 1999 (‘the Act’). While Indian
65
law permits comparative ads, denigration or derogation of competing goods is impermissible. The principles for grant of injunction in such cases were laid down by the Calcutta High Court and have been followed consistently by various courts. Briefly put, these principles state that a tradesman can declare his goods to be the best in the world and better than his competitor’s even if it is untrue and while doing so, he can even compare the advantages of his goods over his competitor’s. However, it is illegal if he says that his competitor’s products are bad.
66
HUL THROWS RIN CHALLENGE TO TV VIEWERS After stay orders on the above described commercial, Hindustan Unilever Ltd (HUL) has now launched an aggressive television campaign titled ‘Rin Safedi ki Challenge’ on channels across India.
HUL has roped in cine star Kajol to feature in its new communication for Rin. “Are you ready for the Rin Challenge? If you win, you get Rs 1 crore as prize money,” says Kajol in Rin’s new commercial.
Interestingly, HUL’s new TVC opens with the shot of ‘Rin Research Center’ where two housewives are invited to take part in the Rin challenge.In the new HUL commercial, the rival brand is not named as it was in the earlier one.
The Rs 1 crore challenge advertising campaign is supposed to bring alive the Rin’s superior value proposition to its consumers in a distinct and engaging manner.
Meanwhile, P&G has increased the grammage of its new launch Tide Naturals (200& 500gm packs) by 25% without increasing price in the first week of March. Three months ago, HUL had reduced prices of Rin bar (200g) from Rs 12 to Rs 10 and of 100g from Rs 6 to Rs 5. HUL and P&G are now turning their attention to high-voltage ad campaigns to gain mind and market share in the Rs 4,500-crore branded detergents sector.
67
RESEARCH DESIGN A research design is a framework or blueprint for conducting the marketing research project. It specifies the details of the procedures necessary for obtaining the information needed to structure and/or solve marketing research problem. The research design used in this project is Descriptive research design. SAMPLE DESIGN •
SAMPLING TECHNIQUE USED: In this research, we have used convineance sampling.
•
GEOGRAPHICAL AREA: Jaipur
•
SAMPLE SIZE: For this study, a sample of 50 respondents has been taken.
DATA COLLECTION TECHNIQUE •
Questionnaire
• Sources of Data • •
Primary sources
•
The primary data was collected through questionnaires. They were filled using the scheduled method of data collection by the researcher.
• •
Secondary sources
•
The secondary sources were used only for collecting information regarding the project, collected from HUL and P&G website and TOI and DNA newspapers.
68
TOOLS OF INVESTIGATION The study was conducted with the help of questionnaire which was administered personally to all the respondents. The questionnaire is aimed at fulfilling out the impact of Advertisements of HUL and P & G in terms of Consumer preferences, recall and purchase behaviour. Tools Utilized: Percentage Analysis •
Bar Graph Chart
•
Column chart
•
Pie chart
STATISTICAL TOOLS USED Different statistical tools are available that help us to reach to the conclusion. We have used those various tools and techniques for the analysis of the data collected.
69
DATA ANALYSIS AND INTERPRETATION Market Share Q1. Which of the following laundry products do you use?
a) HUL(Rin, Wheel, Surf- excel) b) P&G(Tide, Ariel) c) Others
Interpretation: The above chart shows that the HUL’s laundry products hold the major market share (62%) while P&G holds 35% share in this market.
70
Q2. Which of the following hair care products do you use?
a) HUL(Sunsilk, Clinic-plus, dove) b) P&G(Pantene, Head & shoulders) c) Others
Interpretation: The above chart shows that the HUL’s hair care products holds 50% market share while P&G holds 36% share in this market.
71
Q3. Which of the following skin care products do you use?
a) HUL(Ponds, Lakme, Fair & Lovely, Vaseline) b) P&G(Olay) c) Others
Interpretation: The above chart shows that the HUL’s skin care products hold the major market share (76%) while P&G holds only 11% share in this market.
72
Q4. Which of the following oral care products do you use?
a) HUL(Close-up, Pepsodent) b) P&G(Oral-B, Crest) c) Others
Interpretation: The above chart shows that the HUL’s oral care products hold the major market share (55%) while P&G holds only 12% share in this market.
73
Q5. Which of the following soaps do you use?
a) HUL(Breeze, Dove, Lifebuoy, Lux, Pears, Rexona, Liril) b) P&G(Camay, ivory) c) Others
Interpretation: The above chart shows that the HUL’s soaps hold the major market share (81%) while P&G holds mere 3% share in this market.
74
Motivation Factor Q6.What motivates you to buy the selected products?
a) Quality b) Price c) Both Laundry Products
Interpretation: From the above chart we can analyse that large part of the population buys HUL laundry products because of its product’s nominal price and good quality and although the quality of P&G products is good but they are dearer than HUL products.
75
Hair Care Products
Interpretation: From the above chart we can analyse that both P&G and HUL provide a good range of hair care products for price conscious as well as quality conscious people. Skin Care
Interpretation: From the above chart we can analyse that while P&G provides superior quality skin care products, a large population buys HUL product because of both its nominal price and good quality.
76
Oral Care
Interpretation: From the above chart we can analyse that both HUL and P&G oral care products are equally good at price and quality. Soaps
Interpretation: From the above chart we can analyse that P&G’s soaps attract customers because of their superior quality while major population buys HUL products because it provides a good range of soaps for all people.
77
Distribution Channels Q7.Are you satisfied with the availability of the selected products?
a) Yes b) No Laundry Products
Interpretation: The above chart shows that both HUL and P&G have good distribution channels for their laundry products. Hair Care
Interpretation: The above chart shows that both HUL and P&G have good distribution channels for their hair care products but HUL’s channels are comparatively better.
78
Skin Care
Interpretation: The above chart shows that both HUL and P&G have good distribution channels for their skin care products but HUL’s channels are comparatively better. Oral care
Interpretation: The above chart shows that HUL has good distribution channels for its oral care products while P&G’s channels are comparatively weaker.
79
Soaps
Interpretation: The above chart shows that HUL has good distribution channels for its soaps while P&G’s channels are weaker.
80
COMPARATIVE ANALYSIS
•
Consumers prefer to buy HUL’s products more as compared to P&G products in all product lines.
•
HUL provides good quality laundry products at nominal price and although the quality of P&G products is good but they are dearer than HUL products.
•
Superior quality motivates consumers to buy P&G skin care products and soaps, while good quality at nominal price motivates consumers to buy HUL products.
•
Both HUL and P&G have good distribution channels for their hair care products but HUL’s channels are comparatively better.
•
HUL has good distribution channels for its oral care products while P&G’s channels are comparatively weaker.
•
HUL has good distribution channels for its oral care products while P&G’s channels are weaker.
81
CONCLUSION
•
Both HUL and P&G Companies are well establish companies in field of FMCG .
•
The demand of HUL products is more as compared to P&G and other companies.
•
The qualities of products provided by the companies are satisfactory.
•
Hul has lot of variety of the product as compared to other brands in India, means has long product line.
•
Distribution channels of HUL are better than that of P&G in India.
•
HUL provides low price products as compared to P&G and thus attract a lot of price conscious consumers.
RECOMMENDATIONS
•
P&G has a huge opportunity to capture the large Indian market as its quality is trusted by most consumers. It should thus try to launch more of its products in India like that of HUL.
•
A large number of consumers in India are price conscious while the P&G products are comparatively dearer. P&G should thus try to launch products at cheaper rates.
•
As a lot of people prefer to buy various products from departmental stores, P&G should make its products easily available there.
82
BIBLIOGRAPHY AND WEBLIOGRAPHY Times of India Newspaper The Economics Times The Hindu DNA Newspaper www.hul.co.in www.PG.com www.wikipedia.com www.google.com
83
