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SUBMITTED TO:
Dr. Devendra Arora
(Director, MBA)
SUBMITTED BY
Kirti Rana
MBA IV Sem
Roll No.: 1307270038
STUDENT DECLARATION
I Kirti Rana student of MBA at IIMT Management College, Meerut hereby declare that
the Project work entitled MARKET ANALYSIS OF SKIN CARE PRODUCTS is my original
work. I further declare that information furnished in this project report is true to the
best of my knowledge and has not submitted in any institute or university for the
award of and degree or diploma.
Date
Kirti Rana
Place
ACKNOWLEDGEMENT
I Feel proud of getting such opportunity to get myself associated with an esteemed organization like
HINDUSTAN UNILEVER LIMITED.
This project comes out to be a great source of learning and experience. A lot of efforts
have been put by various people to make this project a success. This has greatly
enhanced my knowledge about the vast field of Marketing that an individual prefers in
todays scenario.
I am extremely thankful to Dr. Abhimanyu Updhayay (Asst. Professor) and my
team members who contributed their effort and continuous encouragement in making
this project successful.
Last but not the least; I am extremely thankful to my family members and my friends
for their constant support and valuable guidance.
I hope I can build upon the knowledge and experience that I have gained here and
make a valuable contribution towards this industry in the coming future.
TABLE OF CONTENT
1.
05
2.
COMPANY PROFILE
3.
MANAGEMENT STRUCTURE
18
4.
20
5.
6.
53
7.
54
8.
9.
AN OVERVIEW
15
26
59
60
ENVIRONMENTAL POLICY
60
QUALITY POLICY
INTRODUCTION TO INDUSTRY
GROWTH PROSPECT
63
66
70
72
72
73
10.RESEARCH METHODOLOGY
74
76
5
12.FINDINGS
85
88
14.CONCLUSION
91
15. APPENDIX
1
QUESTIONNAIRE
94
BIBLIOGRAPHY
100
Personal Care, Oral Care, Hair Care, Skin Care, Personal Wash (soaps);
Household care fabric wash including laundry soaps and synthetic detergents;
household cleaners, such as dish/utensil cleaners, floor cleaners, toilet cleaners,
6
air fresheners, insecticides and mosquito repellents, metal polish and furniture
polish.
4
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.
Sector
outlook
FMCG 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
Strengths:
1. Low operational costs
2. Presence of established distribution networks in both urban and rural areas
3. Presence of well-known brands in FMCG sector
Weaknesses:
1. Lower scope of investing in technology and achieving economies of scale, especially
in small sectors
2. Low exports levels
3. 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 market
2. Rising income levels i.e. increase in purchasing power of consumers
3 .Large domestic market
4. Export potential
5. High consumer goods spending
Threats:
1. Removal of import restrictions resulting in replacing of domestic brands
Future Scenario
The 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 prospect:With the presence of 12.2% 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
9
products and offer new generation products, they would be able to generate higher
growth in the near future. Income in rural areas is rising and it gives a fillip to FMCG
sector. 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 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.
10
fragmented with roughly half the market going to unbranded, unpackaged home made
products. This presents a tremendous opportunity for makers of branded products who
can convert consumers to branded products. However, successfully launching and
growing market share around a branded product in India presents tremendous
challenges. Take distribution as an example. India is home to six million retail outlets
and super markets virtually do not exist. This makes logistics particularly for new
players extremely difficult. Other challenges of similar magnitude exist across the
FMCG supply chain. The fact is that FMCG is a structurally unattractive industry in
which to participate. Even so, the opportunity keeps FMCG makers trying.
The products often cater to 3 very distinct but usually wanted for aspects necessity, comfort, luxury. They meet the demands of the entire cross section of
population. Price and income elasticity of demand varies across products and
consumers.
Individual items are of small value (small SKU's) although all FMCG products put
together account for a significant part of the consumer's budget.
13
The consumer spends little time on the purchase decision. He seldom ever looks
at the technical specifications. Brand loyalties or recommendations of reliable
retailer/ dealer drive purchase decisions.
Limited inventory of these products (many of which are perishable) are kept by
consumer and prefers to purchase them frequently, as and when required.
costs; and (3) logistics - sometimes its essential to get certain products
manufactured near the market.
Limited Mass Media Options - The challenge associated with the launch
and/or brand-building initiatives is that few no mass media options. TV reaches
67% of urban consumers and 35% of rural consumers. Alternatives like wall
paintings, theatres, video vehicles, special packaging and consumer promotions
become an expensive but required activity associated with a successful FMCG.
Critical factors for success are the ability to build, develop, and maintain a robust
distribution network.
Competition
Significant Presence of Unorganized Sector - Factors that enable small, unorganized
players with local presence to flourish include the following:
Basic technology for most products is fairly simple and easily available.
The small-scale sector in India enjoys exemption/ lower rates of excise duty,
sales tax etc. This makes them more price competitive vis--vis the organized
sector.
A highly scattered market and poor transport infrastructure limits the ability of
MNCs and national players to reach out to remote rural areas and small towns.
Low brand awareness enables local players to market their spurious look-alike
brands.
A general assessment of this would lead to the conclusion that FMCG is not a
Structurally attractive Industry to Enter.
16
COMPANY PROFILE
Hindustan Unilever Limited, erstwhile Hindustan Lever Limited (also called HLL),
headquartered in Mumbai, is India's largest consumer products company, formed in
1933 as Lever Brothers India Limited. Its 41,000 employees are headed by
Mr.Harish Manwani, the non-executive chairman of the board. HUL is the market leader
in Indian products such as tea, soaps, detergents, as its products have become daily
household name in India. The Anglo-Dutch company Unilever owns a majority stake in
Hindustan Unilever Limited.
A number of prominent companies came into the HUL fold as result of Unilevers
international acquisitions. These included Brooke Bond (1984), Lipton (1972) and
Ponds (1986). In 1993, Tata Oil Mills Company (TOMCO) merged with HLL. Two years
later, HLL and yet another Tata company, Lakme Limited, formed a 50:50 joint venture,
17
Lakme Lever Limited. Subsequently in 1998, Lakme Limited sold its brands to HLL and
divested its 50 per cent stake in the joint venture to the FMCG giant.
The leading business magazine, Forbes Global, has rated Hindustan Lever as the best
consumer household products company. Far Eastern Economic Review has rated HLL as
Indias most respected company. Asia money has rated HLL as one of Indias best
managed companies.
Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods
company, with leadership in Home & Personal Care Products and Foods & Beverages.
HUL's brands, spread across 20 distinct consumer categories, touch the lives of two out
of three Indians. They endow the company with a scale of combined volumes of about
4
million
tonnes
and
sales
of
Rs.13,718
crores.
The mission that inspires HUL's over 15,000 employees is to "add vitality to life". With
35 Power Brands, HUL meets everyday needs for nutrition, hygiene, and personal care
with brands that help people feel good, look good and get more out of life.
It is a mission HUL shares with its parent company, Unilever, which holds 52.10% of the
equity. A Fortune 500 transnational, Unilever sells Foods and Home and Personal Care
brands in about 100 countries worldwide.
MISSION
Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition,
hygiene, and personal care with brands that help people feel good, look good and get
more out of life.
18
CORPORATE PURPOSE
Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition,
hygiene and personal care with brands that help people feel good, look good and get
more out of life.
Our deep roots in local cultures and markets around the world give us our strong
relationship with consumers and are the foundation for our future growth. We will bring
our wealth of knowledge and international expertise to the service of local consumers a
truly
multi-local
multinational.
BUSINESS
HULs business activities are divided into four broad areas:
19
Foods
Personal Wash
Tea
Fabric Wash
Coffee
Home Care
Branded Staples
Oral Care
Culinary Products
Skin Care
Ice Creams
Hair Care
New Ventures
Exports
HPC
Beverages
Sangam
Marine Products
Rice
Castor
Brands
HUL s brands are household names across the country. They include Lifebuoy, Lux, Surf
Excel, Rin, and Wheel, Fair & Lovely, and Pond s, Sunsilk, Clinic, Pepsodent, Close-up,
Lakme, Brooke Bond, Kissan, Knorr-Annapurna and Kwality Walls.
20
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 selfsufficient divisions - Home & Personal Care & Foods - supported by certain central
functions and resources to leverage economies of scale wherever relevant.
1
Board
Divisions
Central functions
Businesses
Chairman
Mr Douglas Baillie
CEO & MD
Mr Sanjiv Kakkar
Director
Mr Nitin Paranjpe
Executive Director
Mr Aditya Narayan
Director
21
Mr V Narayanan
Director
Mr D.S Parerkh
Director
Mr C.K Prahlad
Director
Mr S. Ramdorai
Director
Mr D. Sundaram
Our first priority is to be a successful business and that means investing for growth and balancing
short term and long term interests. It also means caring about our consumers, employees and
shareholders, our business partners and the world in which we live.
To succeed requires the highest standards of behaviour from all of us. The general principles
contained in this Code set out those standards. More detailed guidance tailored to the needs of
different countries and companies will build on these principles as appropriate, but will not include
any standards less rigorous than those contained in this Code.
We want this Code to be more than a collection of high sounding statements. It must have practical
value in our day to day business and each one of us must follow these principles in the spirit as well
as the letter.
22
Standard of Conduct
We conduct our operations with honesty, integrity and openness, and with respect for the human
rights and interests of our employees.
We shall similarly respect the legitimate interests of those with whom we have relationships.
We respect the dignity of the individual and the right of employees to freedom of association.
23
We will maintain good communications with employees through company based information and
consultation procedures.
Consumers
Unilever is committed to providing branded products and services which consistently offer value in
terms of price and quality, and which are safe for their intended use. Products and services will be
accurately and properly labeled, advertised and communicated.
Shareholders
Unilever will conduct its operations in accordance with internationally accepted principles of good
corporate governance. We will provide timely, regular and reliable information on our activities,
structure, financial situation and performance to all shareholders.
Business Partners
Unilever is committed to establishing mutually beneficial relations with our suppliers, customers and
business partners.
In our business dealings we expect our business partners to adhere to business principles consistent
with our own.
Community Involvement
Unilever strives to be a trusted corporate citizen and, as an integral part of society, to fulfill our
responsibilities to the societies and communities in which we operate.
24
Public Activities
Unilever companies are encouraged to promote and defend their legitimate business interests.
Unilever will co-operate with governments and other organisations, both directly and through bodies
such as trade associations, in the development of proposed legislation and other regulations which
may affect legitimate business interests.
Unilever neither supports political parties nor contributes to the funds of groups whose activities are
calculated to promote party interests.
The Environment
Unilever is committed to making continuous improvements in the management of our environmental
impact and to the longer-term goal of developing a sustainable business.
Unilever will work in partnership with others to promote environmental care, increase understanding
of environmental issues and disseminate good practice.
Innovation
In our scientific innovation to meet consumer needs we will respect the concerns of our consumers
and of society. We will work on the basis of sound science applying rigorous standards of product
safety.
25
Competition
Unilever believes in vigorous yet fair competition and supports the development of appropriate
competition laws. Unilever companies and employees will conduct their operations in accordance
with the principles of fair competition and all applicable regulations.
Business Integrity
Unilever does not give or receive whether directly or indirectly bribes or other improper advantages
for business or financial gain. No employee may offer give or receive any gift or payment which is,
or may be construed as being, a bribe. Any demand for, or offer of, a bribe must be rejected
immediately and reported to management.
Unilever accounting records and supporting documents must accurately describe and reflect the
nature of the underlying transactions. No undisclosed or unrecorded account, fund or asset will be
established or maintained.
Conflicts of Interests
All Unilever employees are expected to avoid personal activities and financial interests which could
conflict with their responsibilities to the company.
26
Unilever employees must not seek gain for themselves or others through misuse of their positions.
The Board of Unilever expects employees to bring to their attention, or to that of senior
management, any breach or suspected breach of these principles.
Provision has been made for employees to be able to report in confidence and no employee will
suffer as a consequence of doing so.
SKIN CATEGORY
PEARS
Introduced in India in 1902, Pears soap has no equal. It is gentle enough, even for
baby's skin.
Pears is manufactured like any other soap, but unlike in conventional soaps, the
glycerine is retained within the soap. That is the cause if its unique transparency. After
manufacturing, the soap is mellowed under controlled conditions over weeks. At the
end of this maturing process, it is individually polished and packed in cartons.
Today Pears is available in three variants - the traditional amber variant, a green
variant for oil control and a blue variant for germ protection.
28
PEARS AMBER
125 GM
PEARS AMBER
75 GM
PEARS AMBER
45 GM
75 GM
PEARS GERMSHILD
75 GM
29
80 GM
25GM
30
9 GM
9 GM
50 GM
25 GM
9 GM
50 GM
50 GM
50 GM
25 GM
50 GM
25 GM
25 GM
PONDS
Pond's has been synonymous with skin care in India since 1947.
The impressive track record of Pond's began when Theron T Pond, a pharmacist from
Utica New York, introduced 'Pond's Golden Treasure' in 1846, a witch-hazel based
wonder product. In 1914, Pond's Cold Cream and Vanishing Cream marked the brand's
evolution to a beauty icon. In 1955 Pond's Extract Company merged with Chesebrough
Manufacturing and in 1987 Unilever purchased Chesebrough-Pond's. By this time the
Pond's brand had built up a powerful international presence. From one man in a tiny
home-made laboratory, to today's state of the art R&D facilities led from Bangkok,
Mumbai, New York and Tokyo, the Pond's promise has remained the same across 58
countries - to deliver products that make a real difference to women's skin and the way
they live their lives.
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PONDS TALCUM
PONDS DFT 400 GM
PONDS DFT 200 GM
PONDS DFT 100 GM
PONDS DFT 50 GM
PONDS DFT 20 GM
PONDS MAGIC 400 GM
PONDS MAGIC 100 GM
PONDS MAGIC 50 GM
PONDS MAGIC 20 GM
PONDS SANDAL TALC 300 GM
PONDS SANDAL TALC 100 GM
PONDS SANDAL TALC 50 GM
PONDS SANDAL TALC 20 GM
PONDS OIL CONTROL 400 GM
PONDS OIL CONTROL 100 GM
Vaseline
32
Vaseline is a trusted brand worldwide associated with daily skin care and healthy skin
for the entire family. Vaseline has been keeping skin healthy since 1870.
The Vaseline Philosophy:
The need for Vaseline is based on real skin facts. We believe our skin is amazing. It
protects us,heals itself, connects us to the world, transmits emotions. And this amazing
skin needs to be looked after. Nobody knows skin, and how to keep it at its healthy
best.This why HUL make products that maintain our skin condition at its best and
enhances its natural health.
Vaseline Petroleum Jelly is a mixture of Mineral oils, Paraffin and microcrystalline waxes,
is that when blended together, create something remarkable- it literally melts into your
body, protecting the skin from within.Vaseline petroleum Jelly serves two functions.
First it helps keep the outside world out it protects skin from effects of weather and
exposure. Second it acts like a sealant to keep the inside world in, thereby acting as a
barrier to the natural water loss from our skin. So Skin that is dry and chapped is
protected from drying elements, enabling skin softening moisture to build up naturally
from inside the skin itself.
Vaseline Total Moisture Body Lotion:
Beneath the surface, your skin is 90% water, enabling it to act as a moisture and
nutrient reserve. So keeping your skin well hydrated is critical to your wellbeing.Unfortunately however, our body tends to lose moisture throughout the day.
Bathing,casual contact, washing, sitting in the AC for too long, seasonal changes, all
robs the body of its moisture. Vaseline Total Moisture is a fast-absorbing lotion enriched
with Soya and Oat protein that are known to nourish the skin from deep inside while
33
Vitamin E feeds your skin with the nutrient that is essential to keep it glowing. Together
they result in healthy looking skin.
Vaseline Aloe Cool and Fresh Body Lotion:
With the goodness of Cucumber and Aloe Vera, this light moisturising body lotion is
especially made to meet your skin needs in summer. Cucumber is a surprising beauty
secret for the skin with its hydrating, cooling and soothing properties. Aloe Vera on the
other hand, is an unparalleled moisturiser and cell rejuvenator which is excellent for
dry skin. Together, these two ingredients can keep your skin looking and feeling its
healthiest best.
34
LAKME
Half a century ago, as India took her steps into freedom, Lakme, India's first beauty
brand was born. At a time when the beauty industry in India was at a nascent stage,
Lakme tapped into what would grow to be amongst the leading, high consumer interest
segments in the Indian Industry - that of skincare and cosmetic products. Armed with a
potent combination of foresight, research and constant innovation, Lakme has grown to
be the market leader in the cosmetics industry.
Lakme today has grown to have a wide variety of products and services that cover all
facets of beauty care, and arm the consumer with products to pamper her from head to
toe. These include products for the lips, nails, eyes, face and skin, and services like the
Lakme Beauty Salons.
LAKME SUMMER COLLECTION
Lakme Sun Expert Ultra matte - SPF 20*
35
Lakme presents a revolutionary light sunscreen, with insta oil absorb complex. This
broad spectrum fluid instantly absorbs excess oil from the surface of the skin, leaving
your face matte and shine-free.
Finally sunscreen comfortable enough to become a daily habit. Enabling you to do what
is right for your skin- no matter what the weather.Its UVA and UVB absorbers give you
perfect protection for medium levels of sun exposure,defending your skin from harmful
sun damage.
How to Use:
Apply on face, neck and other exposed areas atleast 20minutes before stepping out in
the skin. Wait for a minute before applying makeup re-apply every 3 to 4 hours.
36
SPF 30*(High
creme has a deep moisturising action. Best suited for Dry and Dehydrated skin. This
formulation is water and sweat resistant.
To Use:
Apply daily to face and other exposed areas. Re-apply every 3 to 4 hours.
Results:
Moisturised skin that is protected from the harmful effects of the Sun.
Key Ingredients:
Aqua, Octyl Methoxycinnamate, Cyclomethicone, Benzophenone-3, Titanium Dioxide,
Perfume.
38
How to Use
Massage gently onto face, neck, hands and other exposed parts of the body. Use daily,
all year round, whether you are indoors or outdoors. .
Part of the Unilever portfolio since 1986, Pond's recently announced the launch of
'Pond's White Beauty Detox' range that gives a visibly illuminated and nourished pink
glow.Talking of luminous, Pond's White Beauty is not just about skin whitening for the
consumer, but about a radiant healthy skin that gives a nourished pink glow. Pond's
White Beauty has detoxifying vitamins B3, B6, E, and C, which neutralizes the effect of
darkness-causing impurities found in the environment and reduces accumulated
melanin, thus giving a smooth, pure and bright skin.
Pond's White Beauty represents the international expertise of Pond's in providing
superlative skincare regimes. Increasingly, Indian women are looking for the complete
skincare regime of cleansing, toning and moisturizing and this product range provides
all beauty regime requirements.
The range consists of White Beauty Detox Cleanser which cleans thoroughly, White
Beauty Detox Toner, which tightens the open pores and smoothens out the rough
appearance of the skin; White Beauty Skin Lightening Cream with Detox vitamins that
nourish skin from within, and White Beauty Detox Lotion, which replenishes skin's
natural moisture level and gives visibly glowing and smooth pinkish skin.
39
40
41
42
COMPETITIVE BRANDS
PRODUCT PROFILE
Vivel Satin Soft is enriched with Vitamin E and Aloe Vera which help the skin feel
beautifully soft.
Vivel Sandal Sparkle is enriched with Sandalwood Oil and Active Clay which helps
in providing clear skin.
Vivel Ayurveda Essence is enriched with multiple Ayurvedic Ingredients which help
protect skin from germs and harsh environment, keeping it healthy and beautiful.
Although the market trend shows that these ITC brands are no competition to
Pears right now. But if ITC improves its distribution network then these
brands can be a threat to HUL.
Fairness creams
FAIR ONE
'Fairone Fairness Cream' was launched jointly by Elder Pharmaceuticals and Shahnaz
Husain. Elder Pharmaceuticals Ltd and Shahnaz Husain, herbal beauty specialist, had
entered into an agreement to launch four skin care products during 2006-2007. Elder
undertakes the manufacturing and marketing of the products, while the conception and
composition is done by Husain. Elder Pharmaceuticals Ltd. is one of the leading
companies in India in the skin care sector. The company is a major manufacturer of
aloe vera-based skin care products.
44
Indications
FAIR ONE cream has a unique blend of herbal ingredients like saffron,
honey, apricot oil, rose, cucumber and lemon distillate. The formulation
protects the skin from the darkening effects of the sun. Honey, a natural
moisturizer, nourishes the skin, keeping it smooth and supple. FAIR ONE
cream helps to make your skin look fairer and brighter.
Method of Use
A fair complexion has always been associated with success and popularity. Men and
women alike desire fairness, it is believed to be the key to a successful life. Well for
women the market is loaded with fairness cream but for men there are very few
creams. Emami Fair and Handsome is one such cream for men. Emami herbalists and
dermatologists from India along with Activor Corp USA, has
created Fair & Handsome a fairness cream for Men with a breakthrough Five Power
Fairness System to make skin fair and handsome in 4 weeks.
45
Emami - Fairness
46
Fair and
What it does:
The efficiency of this cream has been dermatologically tested on Indian male skin. 73%
were found to be fairer. 78% found it to be an effective after shave moisturiser.75%
found effective oil-control.
GARNIER
Garnier is a division of L'Oral that produces hair care products, including the Fructis
line, and most recently, skin care products under the name, Nutritioniste, that are sold
around the world. One of their key ingredients is a fruit concentrate used in all their
products. It is a combination of fruit acids, vitamin B3 and B6, fructose and glucose.
Fairness + dark spots prevention daily
Moisturiser
Lightens skin
Prevents dark spots from reappearing.
47
FAIREVER
Natural Fairever was initially launched in A.P. in 1998, following that a national launch
was made in 1999. Fairever is the brand of CavinKare Pvt Ltd(CKPL). This cream has a
blend of saffron and milk. It claims to work from within to provide a distinctly fairer,
glowing complexion much like that of Kashmiri beauties in just 4 weeks Triple
sunscreens also retain your fairness and reduce the harmful effects of UV rays. It
comes in a pack of 50g and 100g. The 50g pack costs Rs.55.
The Fairever claims to have consumers as a woman who is the young and
contemporary woman of today. She has strong values and believes in using a natural
product that will help bring out her natural beauty from within.
Fairever
Fairness Cream
48
TALCUM POWDER
CINTHOL
49
Cinthol talc is a product of GODREJ Consumer Products Ltd (GCPL). GCPL identifies
Cinthol as its power brand. GCPL has launched new Cinthol range of soap, talc and
deodorant with Bollywood actor Hrithik Roshan as its new brand ambassador. Cinthol
offers a range of soaps, talc and deo sprays in three exciting fragrance - Classic,
Cologne
and Sport - in a new packaging.
Cinthol has come out with a combi pack for this summer. It is in pack of 300g + 100g
for
M.R.P Rs.80.
SPINZ
Exotic
Exchante
50
Sandal
The Spinz talcs target are girls of around 18 to 26 years old from SEC A and B.
Easygoing
and fun-loving, who loves to have a lot of friends with whom she spends time.
SUN CARE
LOTUS
Lotus sun care range is by Lotus Herbals. Lotus suncare has a wide range of variants
available for all skin types. Their SPF(Sun Protection Formula) ranges from 15 to 60.This
caters to the needs of all kind of people who need different type of SPF according to
their exposure to the sun. Lotus is more priced than Lakme but gives a good margin to
the retailers. This brand specializes in sunscreen manufacturing and it is very old in this
field, due to this it has gained trust of people. It offers a wide range of facewash,
creams and facepacks which provides protection against sun. The most sellind variant
of Lotus are as follows:-
This unique sun block cream has been specially made for Indian
Summer. It provides complete protection against harmful UVA
& UVB rays of sun, reducing chances of skin tanning and ageing.
51
Ingredients:
Octyle
Methoxy
Cinnamate
Z-Cote,
Titanium
Dioxide
and
Benzophenone-3.
52
Location
HUL products are manufactured in 80 factories. The operations involve over
2,000 suppliers and associates. HUL s distribution network, comprising about
7,000 redistribution stockiest, directly covers the entire urban population, and
about 250 million rural consumers.
Past Milestones
53
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
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 HLL in November 1956; HLL 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, HLL 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.
54
The liberalization of the Indian economy, started in 1991, clearly marked an inflexion in
HLL'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 HLL, effective from April 1, 1993. In 1995, HLL
and yet another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme
Lever 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 HLL and divested its 50% stake in the joint venture to the company.
HLL 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. HLL 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 HLL'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.
55
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 HLL, with effect from January 1, 1996. The internal
restructuring culminated in the merger of Pond's (India) Limited (PIL) with HLL 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 HLL, thereby beginning the divestment of government equity in
public sector undertakings (PSU) to private sector partners. HLL's entry into Bread is a
strategic extension of the company's wheat business. In 2002, HLL acquired the
government's
remaining
stake
in
Modern
Foods.
In 2003, HLL acquired the Cooked Shrimp and Pasteurized Crabmeat business of the
Amalgam Group of Companies, a leader in value added Marine Products exports.
56
Chronology
YEA MILESTONES
R
1888 Sunlight soap introduced in India.
1895 Lifebuoy soap launched; Lever Brothers appoints agents in Mumbai, Chennai, Kolkata, and Karachi.
1918 Vanaspati introduced by Dutch margarine manufacturers like Van den Berghs, Jurgens, Verschure
Creameries, and Hartogs.
1925 Lever Brothers gets full control of North West Soap Company.
1930 Unilever is formed on January 1 through merger of Lever Brothers and Margarine Unie.
1931 Hindustan Vanaspati Manufacturing Company registered on November 27; Sewri factory site bought.
1933 Application made for setting up soap factory next to the Vanaspati factory at Sewri; Lever Brothers
India Limited incorporated on October 17.
1934 Soap manufacture begins at Sewri factory in October; North West Soap Company's Garden Reach
Factory, Kolkata rented and expanded to produce Lever brands.
1937 Mr. Prakash Tandon, one of the first Indian covenanted managers, joins HVM.
1939 Garden Reach Factory purchased outright; concentration on building up Dalda Vanaspati as a brand.
1941 Agencies in Mumbai, Chennai, Kolkata and Karachi taken over; company acquires own sales force.
1942 Unilever takes firm decision to "train Indians to take over junior and senior management positions
instead of Europeans".
1944 Reorganization of the three companies with common management but separate marketing operations.
58
1951 Mr. Prakash Tandon becomes first Indian Director. Shamnagar, Tiruchy, and Ghaziabad Vanaspati
factories bought.
1956 Three companies merge to form Hindustan Lever Limited, with 10% Indian equity participation.
1961 Mr. Prakash Tandon takes over as the first Indian Chairman; 191 of the 205 managers are Indians.
1964 Etah dairy set up, Anik ghee launched; Animal feeds plant at Ghaziabad; Sunsilk shampoo launched.
1966 Lever's baby food, more new foods introduced; Nickel catalyst production begins; Indian shareholding
increases to 15%. Statutory price control on Vanaspati; Taj Mahal tea launched.
1968 Mr. V. G. Rajadhyaksha takes over as Chairman from Mr. Prakash Tandon; Fine Chemicals Unit
commissioned at Andheri; informal price control on soap begins.
59
1969 Rin bar launched; Fine Chemicals Unit starts production; Bru coffee launched
1971 Mr. V. G. Rajadhyaksha presents plan for diversification into chemicals to Unilever Special Committee
- plan approved; Clinic shampoo launched.
1974 Pilot plant for industrial chemicals at Taloja; informal price control on soaps withdrawn; Liril
marketed.
1975 Ten-year modernization plan for soaps and detergent plants; Jammu project work begins; statutory
price control on Vanaspati and baby foods withdrawn; Close-up toothpaste launched.
1976 Construction work of Haldia chemicals complex begins; Taloja chemicals unit begins functioning.
1977 Jammu synthetic Detergents plant inaugurated; Indian shareholding increases to 18.57%.
1978 Indian shareholding increases to 34%; Fair & Lovely skin cream launched.
1980 Dr. A. S. Ganguly takes over as Chairman from Mr. T. Thomas; Unilever shareholding in the company
comes down to 51%.
1986 Agri-products unit at Hyderabad starts functioning - first range of hybrid seeds comes out; Khamgaon
Soaps unit and Yavatmal Personal Products unit start production.
60
1993 HLL's largest competitor, Tata Oil Mills Company (TOMCO), merges with the company with effect
from April 1, 1993, the biggest such in Indian industry till that time. Merger ultimately accomplished
in December 1994; Launch of Vim bar; Kissan acquired from the UB Group.
1994 HLL forms Nepal Lever Limited, HLL and US-based Kimberley-Clark Corporation form 50:50 joint
venture - Kimberley-Clark Lever Ltd. - to market Huggies diapers and Kotex feminine care products.
Factory set up at Pune in 1995; HLL acquires Kwality and Milkfood 100% brand names and
distribution assets. HLL introduces Wall's.
1995 HLL and Indian cosmetics major, Lakme Ltd., form 50:50 joint venture - Lakme Lever Ltd.; HLL
enters branded staples business with salt; HLL recognized as Super Star Trading House.
1996 Mr. K. B. Dadiseth takes over as Chairman from Mr. S. M. Datta; Merger of Group company, Brooke
Bond Lipton India Limited, with HLL, with effect from January 1; HLL introduces branded aatta; Surf
Excel launched.
1997 Unilever sets up International Research Laboratory in Bangalore; new Regional Innovation Centers
also come up.
1998 Group company, Pond's India Ltd., merges with HLL with effect from January 1, 1998. HLL acquires
Lakme brand, factories and Lakme Ltd.'s 50% equity in Lakme Lever Ltd.
2000 Mr. M. S. Banga takes over as Chairman from Mr. K. B. Dadiseth, who joins the Unilever Board; HLL
acquires 74% stake in Modern Food Industries Ltd., the first public sector company to be disinvested
61
HLL enters Ayurvedic health & beauty centre category with the Ayush range and Ayush Therapy
Centers.
2003
Launch of Hindustan Lever Network; acquisition of the Amalgam Group
200
5
2006
Brookefields food operations moved to Mumbai
2007
Company name formally changed to Hindustan Unilever Limited after receiving
the approval of share holders during the 74th AGM on 18 May 2007
Sales of Brooke Bond and Surf Excel each cross the Rs 1,000 crore mark
2008
HUL
completes
75
years
on
17th
October
2008
62
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 companys
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.
64
65
HUL is also one of the country's largest exporters; it has been recognised as a Golden Super Star
Trading House by the Government of India.
The mission that inspires HUL's over 15,000 employees, including over 1,300 managers, is to "add
vitality to life." HUL meets everyday needs for nutrition, hygiene, and personal care with brands that
help people feel good, look good and get more out of life. It is a mission HUL shares with its parent
company, Unilever, which holds 52.10% of the equity. The rest of the shareholding is distributed
among 360,675 individual shareholders and financial institutions.
HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic,
Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall's are
household names across the country and span many categories - soaps, detergents, personal products,
tea, coffee, branded staples, ice cream and culinary products. They are manufactured over 40
factories across India. The operations involve over 2,000 suppliers and associates. HUL's
66
distribution network comprises about 4,000 redistribution stockists and covers 6.3 million retail
outlets reaching the entire urban population, and about 250 million rural consumers.
HUL has traditionally been a company, which incorporates latest technology in all its operations.
The Hindustan Unilever Research Centre (HURC) was set up in 1958, and now has facilities in
Mumbai and Bangalore. HURC and the Global Technology Centres in India have over 200 highly
qualified scientists and technologists, many with post-doctoral experience acquired in the US and
Europe.
HUL believes that an organisation's worth is also in the service it renders to the community. HUL is
focusing on health & hygiene education, women empowerment, and water management. It is also
involved in education and rehabilitation of special or underprivileged children, care for the destitute
and HIV-positive, and rural development. HUL has also responded in case of national calamities /
adversities and contributes through various welfare measures, most recent being the village built by
HUL in earthquake affected Gujarat, and relief & rehabilitation after the Tsunami caused devastation
in South India.
In 2001, the company embarked on an ambitious programme, Shakti. Through Shakti, HUL is
creating micro-enterprise opportunities for rural women, thereby improving their livelihood and the
standard of living in rural communities. Shakti also includes health and hygiene education through
the Shakti Vani Programme, and creating access to relevant information through the iShakti
community portal. The program now covers 15 states in India and has over 45,000 women
entrepreneurs in its fold, reaching out to 100,000 plus villages and directly reaching to 150 million
67
rural consumers. By the end of 2010, Shakti aims to have 100,000 Shakti entrepreneurs covering
500,000 villages, touching the lives of over 600 million people.
HUL is also running a rural health programme Lifebuoy Swasthya Chetana. The programme
endeavours to induce adoption of hygienic practices among rural Indians and aims to bring down the
incidence of diarrhoea. It has already touched 84.6 million people in approximately 43890 villages
of 8 states. The vision is to make a billion Indians feel safe and secure.
If Hindustan Unilever straddles the Indian corporate world, it is because of being single-minded in
identifying itself with Indian aspirations and needs in every walk of life.
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 15,000 employees, including 1200 managers.
The fundamental principle determining the organisation structure is to infuse speed
and flexibility in decision-making and implementation, with empowered managers
across the companys nationwide operations.
1
Board
Management Committee
Board
The Board of Directors as repositories of the corporate powers act as a guardian to the
Company as also the protectors of shareholders interest.
68
This Apex body comprises of a Non- Executive Chairman, four whole time Directors and
five independent Non Executive Directors. The Board of the Company represents the
optimum mix of professionalism, knowledge and experience.
Management Committee
The day-to-day management of affairs of the Company is vested with the Management
Committee which is subjected to the overall superintendence and control of the Board.
The Management Committee is headed by Mr. Nitin Paranjpe and has functional heads
as its members representing various functions of the Company.
Mr. D Sundaram
Vice Chairman
69
Executive Director
Executive Director
Supply Chain
Ms Leena Nair
Executive Director
Executive Director
Legal
HR.
LIMITATIONS
70
One very striking limitations is the fact that even though these
products with all-percasive marketing and distribution channels,
flourishing increasingly in different parts of the world there
appears to be a visible lack of channels providing them substantial
access to semi-urban and rural areas. In other words, the products
of HUL have a weaker grassroots bases.
The
pricing
strategy
adopted
by
HUL
shows
considerable
those
belonging
to
low-income
groups.
This
71
AN OVERVIEW
ENVIRONMENT POLICY
Hindustan Unilever Limited (HUL) supplies high quality goods and services to meet the
daily needs of consumers and industry. In doing so, the Company is committed to
exhibit the highest standards of corporate behaviour towards its consumers,
employees, the societies and the world in which we live.
The company recognises its joint responsibility with the Government and the Public to
protect environment and is committed to regulate all its activities so as to follow best
practicable means for minimising adverse environmental impact arising out of its
operations.
The company is committed to making its products environmentally acceptable, on a
scientifically established basis, while fulfilling consumers' requirements for excellent
quality, performance and safety.
The aim of the Policy is to do all that is reasonably practicable to prevent or minimise,
encompassing all available knowledge and information, the risk of an adverse
environmental impact arising from processing of the product, its use or foreseeable
misuse.
72
This Policy document reflects the continuing commitment of the Board for sound
Environment Management of its operations. The Policy applies to development of a
process, product and services, from research to full-scale operation. It is applicable to
all company operations covering its plantations, manufacturing, sales and distribution,
research & innovation centres and offices. This document defines the aims and scope
of the Policy as well as responsibilities for the achievement of the objectives laid down.
The Vision
Our vision is to continue to be an environmentally responsible organisation making
continuous improvements in the management of the environmental impact of our
operations.
We will achieve this through an Integrated Environment Management approach, which
focuses on People, Technology and Facilities, supported by Management Commitment
as
the
prime
driver.
73
Ensure safety of its products and operations for the environment by using
standards of environmental safety, which are scientifically sustainable and
commonly acceptable.
Assess environmental impact of all its activities and set annual improvement
objectives and targets and review these to ensure that these are being met at
the individual unit and corporate levels.
Reduce Waste, conserve Energy and explore opportunities for reuse and recycle.
good
74
practice.
QUALITY POLICY
Quality is fundamental to our Business Success
Unilevers mission is to meet everyday needs for nutrition; hygiene and personal care
with brands that help people feel good, look good and get more out of life. And a key
requirement is building in the quality expectations of our consumers into our products.
To win consumers confidence and loyalty, we need to consistently deliver branded
products of excellent quality. We understand the different needs of our consumers and
customers and strive to develop and deliver superior brands to ensure that theyre the
preferred choice. And by applying consistently high standards, were able to do things
right
first
time,
cut
waste,
reduce
costs
and
drive
profitability.
Our Quality Policy describes the principles that everyone in Unilever follows, wherever
75
they are in the world, to ensure that we are recognised and trusted for our integrity,
the quality of our brands and products, and the high standards we set.
Principles of the Quality Policy:- (in their own words)
Putting the safety of our products and our consumers first.
We have stringent mandatory quality standards in place against which compliance is
verified through regular audits and self assessments. These standards ensure we
design, manufacture and supply products that are safe, of excellent quality, and
conform to the relevant industry and regulatory standards in the countries in which we
operate. Comprehensive management procedures are in place to mitigate risks and to
protect our consumers and markets.
and share best practice. And weve forged effective working relationships with
suppliers and contract manufacturers.
Building and maintaining excellent systems to ensure the quality and
safety of our products
Were proactively and continuously developing our systems and processes to ensure
quality and safety throughout the whole value chain, and were setting a benchmark
for the business. We provide appropriate training and resources, and will ensure that
we deliver our quality objectives and targets. We regularly measure and improve our
performance
using
both
internal
and
external
measures.
We actively promote our Quality Policy and have a quality assurance organisation in
place to ensure consistency and visibility of quality standards, processes and
performance indicators across all Unilever businesses at all levels, and to anticipate
and develop future quality capability requirements.
77
78
Safety Principles
HUL's Occupational Safety and Health Policy is based on and supported by the
following
eight
Principles.
These Principles have the same status as the Company's Code of Business Principles:
1
This document will form the basis for the concerned Line / Organisations in
developing KPI's for their respective functions / sites.
Scope of Application
This section defines the scope of application of this Policy (where, when and to
whom is this Policy applicable).
Where does this policy apply?
1
Sites
of
associates
with
HUL
holding
>
24%
80
All Unilever and HUL Standards, Rules and Procedures on Occupational Safety
and Health, including those that may be specific to a site are integral to this
Policy and its implementation. All employees are required to ensure strict
adherence.
81
in Rs. Crores)
(Source:
SALES
www.hll.com)
82
PBIT Break-up
(Values
in Rs. Crores)
83
sales
of
Rs.13,718
84
crores.
The mission that inspires HUL's over 15,000 employees is to "add vitality
to life". With 35 Power Brands, HUL meets everyday needs for nutrition,
hygiene, and personal care with brands that help people feel good, look
good and get more out of life.
Growth prospects
85
RESEARCH METHODOLOGY
RESEARCH DESIGN
In my project I have used various tools of Exploratory Research. This research will be
done to gain background information of the problem. An initial research will be
conducted to clarify and define the nature of the problem. The various tools used are
experience surveys, in depth interviews, secondary data analysis. Descriptive research
was done where questionnaires were given to the retailers and the wholesalers to find
out the competition in HUL skin category.
QUESTIONNAIRE DESIGN
86
The questionnaire consists of predominantly closed ended and option based question in
Order to provide some ease to the respondents. In order to make the questionnaire
more
effective following points are covered:
Uniformity in questions and ease of tabulation and analysis.
Reduce subjectivity
Easier to receive response
Less time consuming.
The questions tried to cover all aspects required to analyze the skin category of HUL
and
other competitive brands. The various variables are analyzed in the questions.
87
SAMPLING METHODOLOGY
SAMPLE PLAN
The project was conducted for the geographical region of Delhi. The sample size
comprised of 10 Super Value Store (SVS), 5 exclusive wholesale, 10 Smart PP. The
sample consists of both the retailers and wholesalers of the general trade.
DATA COLLECTION
The data collection exercise was carried over a period of 10 days, in the various
markets
of the region. Over the period of 10 days the data was collected and then all the data
was
very carefully studied and the results were found out.
88
DATA ANALYSIS
Sources of Data Collection:
1
Primary source:
Marketing personnel and HR personnel of concerned locations were approached
to obtain the information. It is collected by Questionnaire and Personal
Interviews at Hubs and Outlets Secondary source:
Internet, Articles from various newspapers and magazines., Company brochures,
literature and pamphlets. Research Methodology is a way to systematically solve
the problems.
(2)
Research Approaches
1
89
SKIN CREAMS
MARGINS
Fair One
20%
20%
Garnier
15%
Although the sale of these brands are far behind FAL but these creams are a direct
competition.
VASELINE
90
Vaseline Aloe fresh is the variant for the summers and it is doing very well. It does not
have any direct competition because there is no other cream in the market for the
summers. The other variants are Vaseline Body lotion and Vaseline Petroleum jelly
these
are the winter creams and there sale in summers is slightly low.
The competitors of Vaseline and their margins are as follows:-
COMPETITORS
MARGINS
20%
Nivea
20%
Ayur
18%
Garnier
15%
The projection of market share of the skin creams in Delhi is as follows:MARKET SHARE OF HUL AND OTHER COMPANIES IN THE SKIN CREAMS
SEGMENT:-
91
HUL
EMAMI
GARIER
OTHERS
The finding of the research shows that the estimated market share of HUL is 42%.
The share of HUL skin category creams in this 42% share is as follows:-
FAL
VPJ
PCC
PVL
VBL
Here we can see that the major portion is covered by Fair & Lovely. It covers 77%.
Vaseline body lotion has a share of 10%. Ponds cold cream is 8% Ponds body lotion is
92
3%.
93
TALCUM POWDER
PONDS
Ponds came into being in 1947. Ponds talc is feminine talc. It is perfume talc and
caters
to the needs of the women. It has got a very strong hold in the market. The consumers
prefer to buy at least two type of talc for their family, ponds talc form the part of the
every basket.
Its competitors and their margins are as follows:-
COMPETITORS
MARGINS
Spinz
Wipro(santoor & enchanteur)
25%
Nivea
20%
Cinthol
14%
There are other competitors as well like Premiun and Emami which comes in the combi
pack of 400g + 400g. Cinthol comes in the combi pack of 300g +100g. These kinds of
94
schemes affect the purchase pattern of people who are not brand loyal and are looking
for
some free gifts or scheme. A person from lower middle section of the society prefers to
buy these talcs because of the value of money that they offer. Johnson & Johnson baby
talc is not the direct competitor of Ponds but it is also a competition because women
buy
this talc because of the softness and fresh fragrance that it provides.
The market share of these talc are as follows:-
HUL
SANTOOR
SPINZ
CINTHOL
J&J
EMAMI
OTHERS
95
DFT
DFM
POC
PST
The largest selling variant of Ponds is Dream Flower Magic which is 46%, next comes
Dream Flower Talc which is 40%. Ponds Oil Control and Sandal Talc are 11% and 3%
respectively.
96
PEARS
ITC has launched Fiama Di Wills in competition of Pears. Pears comes in 3 variants
Pears Amber, Oil Control, Germ Shield. The largest selling variant is Amber. The
consumer pattern shows that those who are loyal to this brand do not switch it easily.
The brand loyalty of this product is more than any other. The other soaps which are is
competition of Pears are Dettol with moisturizers, Johnson & Johnson, Fiama Di Wills.
Fiama Di Wills is a new product and is being liked by people. It is lagging behind in its
distribution network as there is always stock out of this product. In the long run it can
provide good competition to HUL.
The present market share of pears and it competitors are as follows:-
PEARS
FIAMA
DETTOR
J&J
97
98
COMPETITORS
MARGIN
Lotus
35%
Garnier
15%
Shahnaz Husain
25%
99
LAKME
LOTUS
GARNIER
OTHERS
100
101
Ponds
Loreal
Garnier
Olay
Others
102
FINDINGS
103
FINDINGS
As it is obvious from the study the products of HUL have approached the
high water mark of sale in the global consumer market. However, there
are genuine reasons to observe that they have yet to attain the cutting
edge status on many counts. In this regard a few suggestions can be
made to give the required boost to the marketing prospects of HUL
products. These can be summed up as follows:
1
The price structure for various products should be more within the
limit of affordability for consumers; the grassroots consideration in
this regard should not be ignored. Here, the policy of loco-centric
104
105
SUGGESTIONS &
RECOMMENDATION
106
The company can launch a new variant of Ponds, which could be Ponds Fairness
Body Lotion. This will cater to the fairness need of whole body and not just hands
and face. The target customer of this variant can be the youth who are more
boldly dressed and want the whole texture of the skin to be same. Most of the
time the face looks fairer than the hands and the legs.
2
To launch a display scheme for Pears which can counter the competition from
Fiama Di Wills that it may face in the future. HUL can buy windows from the
retailers for the display of Pears soap and face wash.
3
The youth of today is not much into the consumption of fairness cream because
they think it to be harmful for the skin and they are very conscious about the
health of their skin. To cater to this segment of population which is very huge,
Fair & Lovely can initiate activities which makes the youth aware about the
qualities of the brand and to make them understand that the cream is not harmful
for their skin.
4
The company can emphasize on the other qualities of Ponds talc and not just as
perfume talc. It can highlight its medicinal value which is of very necessary for
107
the summers.
5
The company can launch a new variant of Ponds talc with new fresh fragrance.
This will be
for the people who like the brand due to the good quality that it provides but are
bored of the fragrance that has been provided for so long. This will counter the
competition and satisfy the target customers.
6
Lakme can come up with sunscreen which has more SPF so that it can counter
the
competition that it faces from its biggest competitor Lotus. As of now Lakme
come in SPF 15 to SPF 30. It can also come up with sunscreen with higher SPF.
Lotus ranges from SPF 15 to SPF 60. This way Lakme can cater to the needs of
people who are more exposed in the sun and need more protection against it.
7
Ponds White Beauty and Ponds Age Miracle are in their initial stage so these
brands need to communicate more to their customers. The company can promote
activities in the mall where they are sold the most as these are premium brands
and their target customer comes in the malls only. This will help in brand
communication of these brands.
8
The company should emphasize more on mass retail than the wholesale as the
whole sale is very price sensitive. The ideal ratio of wholesale is to retail is 30:70.
108
109
CONCLUSION
110
Conclusion
111
It is a bit surprising to observe that HUL is the market leader even though
its capable of manufacturing and marketing a vast range of products
with an international consumer base. Moreover, the tie-up of Prima India
with HUL reflects that the latter is not unwilling to share its technological
expertise and infrastructural contrivances with others. So, inspite of the
near monopoly situation caused by HULs presence in the global market,
it points to a healthy flexibility in the companys fundamental approach.
112
QUESTIONNAIRE
1. Which kind of Outlet do you follow?
o Exclusive wholesale
o Semi wholesale
o Family grocer
o Mass retail
o Chemist
o Super Value Store
2. Which of the following HUL Skin product you keep in your store?
o Fair & Lovely
o Ponds Dream Flower
o Vaseline
o Pears Soap
o Lakme Sunscreen
o Ponds White Beauty
o Ponds Age Miracle
3.What is the value of the monthly sales of the following products?
113
PRODUCT
VALUE
4. Which products are in competition with the following range of products and their
competitive share?
Fair
lovely
& Ponds
dream
soap
Ponds
sunscream white
flower
beauty
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Ponds age
miracle
COMPETITOR
MARGIN
INVENTORY
MARGIN
INVENTORY
MARGIN
INVENTORY
PRODUCT
Ponds Talcum
COMPETITOR
PRODUCT
Vaseline
COMPETITOR
PRODUCT
115
Pears soap
COMPETITOR
MARGIN
INVENTORY
MARGIN
INVENTORY
PRODUCT
COMPETITOR
MARGIN
INVENTORY
MARGIN
INVENTORY
PRODUCT
6. How much Inventory do you stock for the following HUL products?
PRODUCTS
QUANTITY
7. What are your kind suggestions to increase the sale of HUL Skin category?
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BLIOGRAPHY
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BLIOGRAPHY
There were several sources which provided me with the valuable information about
Hindustan unilever limited. This information helped me in enhancing the affectivity of
this presentation.
www.yahoo.com
www.hll.com
www.wikipedia.com
www.businessworldindia.com
www.answers.com
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