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Summer Training Project Report

On Customer Survey on Sales and Distribution of out of Food Solution products [Kissan]

(Hindustan Unilever Ltd.)


Under the Guidance of Company Mentor
Mr. A. K. Mishra Territory Sales Officer HUL, Lucknow

College Mentor
Prof. Taufel Ahmed Faculty Guide GLBIMR, Greater Noida

Submitted By Akash Srivastava


PGDM III Trimester Roll. No. GM11013

G. L. Bajaj Institute of Management and Research, Greater Noida

TO WHOMSOEVER IT MAY CONCERN


This is to certify that Mr. Akash Srivastava of PGDM (Batch 2011-2013), has successfully undergone a Summer Training in Hindustan Unilever Ltd., Lucknow from 16April to 6June, towards partial fulfillment of the requirement for the Post Graduate Diploma in Management.

During the tenure of Summer Placement, Mr. Akash Srivastava has carried out a Summer Project titled Customer Survey on Sales and Distribution of out of Home products (Kissan Sauce), I certify that the Summer Internship and the Summer Project have been undertaken by Mr. Akash Srivastava of GL Bajaj Institute of Management and Research, Greater Noida, recognized by AICTE, MHRD, Govt. of India, under my supervision.

We wish him all the success in professional career.

Signature with Seal (Mr. A.K Mishra) T.S.O (HUL) Hindustan Unilever Ltd. Contact Email ID: ak.misra.hll@gmail.com Contact Phone No: 9415106464 Date 7 June 2012

GL Bajaj Institute of Management and Research, Greater Noida

ACKNOWLEDGEMENTS
I owe my gratitude to many people who helped and supported me during the entire Summer Training.

My sincere thanks to Prof. Taufel Ahmed [Faculty Guide], the Guide of the project, for initiating and guiding the project with attention and care. He has always been available for me to put me on track from time to time to bring the project at its present form. My deep sense of gratitude is due to Mr. A. K. Mishra [Territory Sales Officer], [HUL Lucknow] for allowing me to carry out the Summer Internship and this Project at the organization and to be constantly available to me for the period, for guidance. He also helped me to see the subject of study in its proper perspective. Thanks and appreciations are also due to the officials, employees and respondents of HUL Lucknow, for their support. I also thank my Institution and my faculty members without whom this project would have been a distant reality.

Signature (Akash Srivastava) Place: HUL Lucknow Date: 7 June 2012 Signature

GL Bajaj Institute of Management and Research, Greater Noida

ABSTRACT
TABLE OF CONTENT Acknowledgement Certificate Abstract Table of contents List of tables List of figures

1. Introduction 2. Company Profile 3. Introduction to the subject 4. Literature Review 5. Objectives 6. Research Methodology 7. Data Analysis 8. Conclusions 9. Suggestions and Recommendations

Bibliography Appendices

GL Bajaj Institute of Management and Research, Greater Noida

Introduction

GL Bajaj Institute of Management and Research, Greater Noida

INTRODUCTION TO INDUSTRY
Ketchup (also catsup, tomato sauce, or red sauce) is a sweet-and-tangy food sauce, typically made from tomatoes, vinegar, a sweetener, and assorted seasonings and spices. The sweetener is most commonly sugar or high-fructose corn syrup. Seasonings vary by recipe, but commonly include onions, allspice, cloves, cinnamon, garlic, and celery. Ketchup is often used as a condiment with various, usually hot, dishes including french fries (chips), hamburgers, sandwiches and grilled or fried meat. Ketchup is sometimes used as a basis or ingredient for other sauces and dressings. History

A bottle of Geo. Watkins mushroom ketchup In the 1690s the Chinese mixed together a concoction of pickled fish and spices and called it (in the Amoy dialect) ke-chiap or k-chiap (, Mandarin gu zh) meaning the brine of pickled fish (, carp; , juice) or shellfish. By the early 18th century, the table sauce had made it to the Malay states (present day Malaysia and Singapore), where it was discovered by British explorers, and by 1740, it had become a British staple.The Malay word for the sauce was kchap. That word evolved into the English word "ketchup". Many variations of ketchup were created, but the tomato-based version did not appear until about a century after other types. By 1801, a recipe for tomato ketchup was created by Sandy Addison and was later printed in an American cookbook, the Sugar House Book.

GL Bajaj Institute of Management and Research, Greater Noida

1. Get [the tomatoes] quite ripe on a dry day, squeeze them with your hands till reduced to a pulp, then put half a pound of fine salt to one hundred tomatoes, and boil them for two hours. 2. Stir them to prevent burning. 3. While hot press them through a fine sieve, with a silver spoon till nought but the skin remains, then add a little mace, 3 nutmegs, allspice, cloves, cinnamon, ginger, and pepper to taste. 4. Boil over a slow fire till quite thick, stir all the time. 5. Bottle when cold. 6. One hundred tomatoes will make four or five bottles and keep good for two or three years. The salt in this recipe, which served as a preservative, yields an extremely salty taste. This recipe is important because tomato was not widely accepted by people in North America in the early 1800s. Many people believed, incorrectly, that tomatoes were poisonous. James Mease published another recipe in 1812. In 1824, a ketchup recipe using tomatoes appeared in The Virginia Housewife (an influential 19th-century cookbook written by Mary Randolph, Thomas Jefferson's cousin). American cooks also began to sweeten ketchup in the 19th century. As the century progressed, tomato ketchup began its ascent in popularity in the United States. Ketchup was popular long before fresh tomatoes were.Many Americans continued to question whether it was safe to eat raw tomatoes. However, they were much less hesitant to eat tomatoes as part of a highly processed product that had been cooked and infused with vinegar and spices. Tomato ketchup was sold locally by farmers. A man named Jonas Yerks (or Yerkes) is believed to have been the first man to make tomato ketchup a national phenomenon. By 1837, he had produced and distributed the condiment nationally. Shortly thereafter, other companies followed suit. F. & J. Heinz launched their tomato ketchup in 1876. Heinz tomato ketchup was advertised: "Blessed relief for Mother and the other women in the household!", a slogan which alluded to the lengthy and onerous process required to produce tomato ketchup in the home. The Webster's Dictionary of 1913 defined catchup as: table sauce made from mushrooms, tomatoes, walnuts, etc. [Also written as ketchup]. Modern ketchup emerged in the early years of the 20th century, out of a debate over the use of sodium benzoate as a preservative in condiments. Harvey W. Wiley, the "father" of the Food and Drug Administration in the U.S., challenged the safety of benzoate which was banned in the 1906 Pure Food and Drug Act. In response, entrepreneurs including Henry J. Heinz, pursued an alternative recipe that eliminated the need for that preservative. Prior to Heinz (and his fellow innovators), commercial tomato ketchups of that time were watery and thin, in part due to the use of unripe tomatoes, which were low in pectin. They had less vinegar than modern ketchups; by pickling ripe tomatoes, the need for benzoate 7

GL Bajaj Institute of Management and Research, Greater Noida

was eliminated without spoilage or degradation in flavor. But the changes driven by the desire to eliminate benzoate also produced changes that some experts (such as Andrew F. Smith) believe were key to the establishment of tomato ketchup as the dominant American condiment.

Later innovations
In fast food outlets, ketchup is often dispensed in small packets that hold ketchup inside. Diners tear the side or top and squeeze the ketchup out of the ketchup packets. In 2010, Heinz began offering an alternate squeeze and dip cup intended to offer a cleaner method of dispensing the product. Previously fast food outlets dispensed ketchup from pumps into paper cups. This method has made a resurgence in the first decade of the 21st century with cost and environmental concerns increasing of individual packets. In October 2000, Heinz introduced colored ketchup products called EZ Squirt, which eventually included green, purple, pink, orange, teal, and blue. These products were made by adding food coloring to the traditional ketchup. As of January 2006 these products have been discontinued.

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG), are products that have a quick turnover and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do for other products. Though the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large. FMCG Products and Categories Personal Care, Oral Care, Hair Care, Skin Care, Personal Wash (soaps); Cosmetics and toiletries, deodorants, perfumes, feminine hygiene, paper products; Household care fabric wash including laundry soaps and synthetic detergents; household cleaners, such as dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellents, metal polish and furniture polish. Food and health beverages, branded flour, branded sugarcane, bakery products such as bread, biscuits, etc., milk and dairy products, beverages such as tea, coffee, juices, bottled water etc, snack food, chocolates, etc. Frequently replaced electronic products, such as audio equipments, digital cameras, Laptops, CTVs; other electronic items such as Refrigerator, washing machines, etc. coming under the category of White Goods in FMCG;

GL Bajaj Institute of Management and Research, Greater Noida

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 for three million people, especially in small towns and rural India.

Analysis of FMCG Sector 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 kjproducts 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 2. Slowdown in rural demand 3. Tax and regulatory structure

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 59

GL Bajaj Institute of Management and Research, Greater Noida

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 16.5% of the world population in the villages of India, the Indian rural FMCG market is something no one can overlook. Increased focus on farm sector will boost rural incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure facilities will improve their supply chain. FMCG sector is also likely to benefit from growing demand in the market. Because of the low per capita consumption for almost all the products in the country, FMCG companies have immense possibilities for growth. And if the companies are able to change the mindset of the consumers, i.e. if they are able to take the consumers to branded products and offer new generation products, they would be able to generate higher growth in the near future. It is expected that the rural income will rise in 2007, boosting purchasing power in the countryside. However, the demand in urban areas would be the key growth driver over the long term. Also, increase in the urban population, along with increase in income levels and the availability of new categories, would help the 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.

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GL Bajaj Institute of Management and Research, Greater Noida

THE TOP 10 COMPANIES IN FMCG SECTOR


1. Hindustan Unilever Ltd. 2. ITC (Indian Tobacco Company) 3. Nestle India 4. GCMMF ( AMUL) 5. Dabur India 6. Asian Paints (India) 7. Cadbury Industries 8. Britannia Industries 9. Procter and Gamble Hygiene and Healthcare 10. Marico Industries

Budget Implications on FMCG Sector


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

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GL Bajaj Institute of Management and Research, Greater Noida

Company profile

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GL Bajaj Institute of Management and Research, Greater Noida

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 HUL. Five years later, HUL and yet another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Lever Limited. Subsequently in 1998, Lakme Limited sold its brands to HUL 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 HUL as Indias most respected company. Asia money has rated HUL as one of Indias best managed companies.

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GL Bajaj Institute of Management and Research, Greater Noida

BUSINESS OF THE COMPANY


HULs business activities are divided into four broad areas:

Home & Personal Care


Personal Wash Fabric Wash Home Care Oral Care Skin Care Hair Care Deodorants & Talcs Color Cosmetics

Foods
Tea Coffee Branded Staples Culinary Products Ice Creams Modern Foods ranges

New Ventures
Hindustan Lever Network Ayush ayurvedic products & services Sangam

Exports
HPC Beverages 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 Ponds, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna and Kwality Walls.

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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
In the summer of 1888, visitors to the Kolkata harbor noticed crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers". With it began an era of marketing branded Fast Moving Consumer Goods (FMCG). Soon after followed Lifebuoy in 1895; other famous brands like Pears, Lux and Vim. Vanaspati were launched in 1918 and the famous Dalda brand came to the market in 1937. In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). These three companies merged to form HUL in November 1956; HUL offered 10% of its equity to the Indian public, being the first among the foreign subsidiaries to do so. Unilever now holds 51.55% equity in the company. The rest of the shareholding is distributed among about 380,000 individual shareholders and financial institutions. The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the company had launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was formed. Brooke Bond joined the Unilever fold in 1984 through an international acquisition. The erstwhile Lipton's links with India were forged in 1898. Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited was incorporated. Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986.Since the very early years, HUL has vigorously responded to the stimulus of economic growth. The growth process has been accompanied by judicious diversification, always in line with Indian opinions and aspirations. The liberalization of the Indian economy, started in 1991, clearly marked an inflexion in HUL's and the Group's growth curve. Removal of the regulatory framework allowed the company to explore every single product and opportunity segment, without any constraints on production capacity. 15

GL Bajaj Institute of Management and Research, Greater Noida

Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the most visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills Company (TOMCO) merged with HUL, effective from April 1, 1993. In 1995, HUL and yet another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Lever Limited, to market Lakme's market-leading cosmetics and other appropriate products of both the companies. Subsequently in 1998, Lakme Limited sold its brands to HUL and divested its 50% stake in the joint venture to the company. HUL formed a 50:50 partnership joint venture with the US-based Kimberly Clark Corporation in 1994. Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary Pads. HUL has also set up a subsidiary in Nepal, Nepal Lever Limited (NLL), and its factory represents the largest manufacturing investment in the Himalayan kingdom. The NLL factory manufactures HUL's products like Soaps, Detergents and Personal Products both for the domestic market and exports to India. The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on the Foods and Beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with significant interests in Instant Coffee. In 1993, it acquired the Kissan business from the UB Group and the Dollops Ice-cream business from Cadbury India. As a measure of backward integration, Tea Estates and Doom Dooma, two plantation companies of Unilever, were merged with Brooke Bond. Then in July 1993, Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL), enabling greater focus and ensuring synergy in the traditional Beverages business. 1994 witnessed BBLIL launching the Wall's range of Frozen Desserts. By the end of the year, the company entered into a strategic alliance with the Kwality Ice-cream Group families and in 1995 the Milk food 100% Ice-cream marketing and distribution rights too were acquired. Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998. The two companies had significant overlaps in Personal Products, Specialty Chemicals and Exports businesses, besides a common distribution system since 1993 for Personal Products. The two also had a common management pool and a technology base. The amalgamation was done to ensure for the Group, benefits from scale economies both in domestic and export markets and enable it to fund investments required for aggressively building new categories.

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GL Bajaj Institute of Management and Research, Greater Noida

In January 2000, in a historic step, the government decided to award 74 per cent equity in Modern Foods to HUL, thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. HUL's entry into Bread is a strategic extension of the company's wheat business. In 2002, HUL acquired the government's remaining stake in Modern Foods. In 2003, HUL acquired the Cooked Shrimp and Pasteurized Crabmeat business of the Amalgam Group of Companies, a leader in value added Marine Products exports.

CHRONOLOGY YEAR MILESTONES


1888 1895 1902 1903 1905 1913 1914 1918 1922 1924 1925 1926 1930 1931 1932 1933 1934 1935 1937 1939 1941 Sunlight soap introduced in India. Lifebuoy soap launched; Lever Brothers appoints agents in Mumbai, Chennai, Kolkata, and Karachi. Pears soap introduced in India. Brooke Bond Red Label tea launched. Lux flakes introduced. Vim scouring powder introduced. Vinolia soap launched in India. Vanaspati introduced by Dutch margarine manufacturers like Van den Berghs, Jurgens, Verschure Creameries, and Hartogs. Rinso soap powder introduced. Gibbs dental preparations launched. Lever Brothers gets full control of North West Soap Company. Hartogs registers Dalda Trademark. Unilever is formed on January 1 through merger of Lever Brothers and Margarine Unie. Hindustan Vanaspati Manufacturing Company registered on November 27; Sewri factory site bought. Vanaspati manufacture starts at Sewri. Application made for setting up soap factory next to the Vanaspati factory at Sewri; Lever Brothers India Limited incorporated on October 17. Soap manufacture begins at Sewri factory in October; North West Soap Company's Garden Reach Factory, Kolkata rented and expanded to produce Lever brands. United Traders incorporated on May 11 to market Personal Products. Mr. Prakash Tandon, one of the first Indian covenanted managers, joins HVM. Garden Reach Factory purchased outright; concentration on building up Dalda Vanaspati as a brand. Agencies in Mumbai, Chennai, Kolkata and Karachi taken over; company acquires own 17

GL Bajaj Institute of Management and Research, Greater Noida

1942 1943 1944 1947 1951 1955 1956 1957 1958 1959 1961 1962 1963 1964 1965 1966

1967 1968 1969 1971 1973 1974 1975

1976 1977

sales force. Unilever takes firm decision to "train Indians to take over junior and senior management positions instead of Europeans". Personal Products manufacture begins in India at Garden Reach Factory. Reorganization of the three companies with common management but separate marketing operations. Pond's Cold Cream launched. Mr. Prakash Tandon becomes first Indian Director. Shamnagar, Tiruchy, and Ghaziabad Vanaspati factories bought. 65% of managers are Indians. Three companies merge to form Hindustan Lever Limited, with 10% Indian equity participation. Unilever Special Committee approves research activity by Hindustan Lever. Research Unit starts functioning at Mumbai Factory. Surf launched. Mr. Prakash Tandon takes over as the first Indian Chairman; 191 of the 205 managers are Indians. Formal Exports Department starts. Head Office building at Back bay Reclamation, Mumbai, opened. Etah dairy set up, Anik ghee launched; Animal feeds plant at Ghaziabad; Sunsilk shampoo launched. Signal toothpaste launched; Indian shareholding increases to 14%. 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. Hindustan Lever Research Centre, opens in Mumbai. Mr. V. G. Rajadhyaksha takes over as Chairman from Mr. Prakash Tandon; Fine Chemicals Unit commissioned at Andheri; informal price control on soap begins. Rin bar launched; Fine Chemicals Unit starts production; Bru coffee launched Mr. V. G. Rajadhyaksha presents plan for diversification into chemicals to Unilever Special Committee - plan approved; Clinic shampoo launched. Mr. T. Thomas takes over as Chairman from Mr. V. G. Rajadhyaksha. Pilot plant for industrial chemicals at Taloja; informal price control on soaps withdrawn; Liril marketed. 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. Construction work of Haldia chemicals complex begins; Taloja chemicals unit begins functioning. Jammu synthetic Detergents plant inaugurated; Indian shareholding increases to 18

GL Bajaj Institute of Management and Research, Greater Noida

1978 1979 1980 1982 1984 1986 1988 1990 1991 1992 1993

1994

1995

1996

1997 1998

2000

2002 2003 2005

18.57%. Indian shareholding increases to 34%; Fair & Lovely skin cream launched. Sodium Tripolyphospate plant at Haldia commissioned. Dr. A. S. Ganguly takes over as Chairman from Mr. T. Thomas; Unilever shareholding in the company comes down to 51%. Government allows 51% Unilever shareholding. Foods, Animal Feeds businesses transferred to Lipton. Agri-products unit at Hyderabad starts functioning - first range of hybrid seeds comes out; Khamgaon Soaps unit and Yavatmal Personal Products unit start production. Launch of Lipton Taaza tea. Mr. S. M. Datta takes over as Chairman from Dr. A. S. Ganguly. Surf Ultra detergent launched. HUL recognised by Government of India as Star Trading House in Exports. HUL'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. HUL forms Nepal Lever Limited, HUL 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. HUL and Indian cosmetics major, Lakme Ltd., form 50:50 joint venture - Lakme Lever Ltd.; HUL enters branded staples business with salt; HLL recognized as Super Star Trading House. 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; HUL introduces branded aatta; Surf Excel launched. Unilever sets up International Research Laboratory in Bangalore; new Regional Innovation Centers also come up. Group company, Pond's India Ltd., merges with HUL with effect from January 1, 1998. HUL acquires Lakme brand, factories and Lakme Ltd.'s 50% equity in Lakme Lever Ltd. Mr. M. S. Banga takes over as Chairman from Mr. K. B. Dadiseth, who joins the Unilever Board; HUL acquires 74% stake in Modern Food Industries Ltd., the first public sector company to be disinvested by the Government of India. HUL enters Ayurvedic health & beauty centre category with the Ayush range and Ayush Therapy Centers. Launch of Hindustan Lever Network; acquisition of the Amalgam Group Launch of "Pureit" water purifiers 19

GL Bajaj Institute of Management and Research, Greater Noida

Management Structure

Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods (FMCG) Company. It is present in Home & Personal Care and Foods & Beverages categories. HUL and Group companies have about 16,000 employees, including 1200 managers. The fundamental principle determining the organization structure is to infuse speed and flexibility in decision-making and implementation, with empowered managers across the company's nationwide operations. For this, HUL is organized into two self-sufficient divisions - Home & Personal Care & Foods - supported by certain central functions and resources to leverage economies of scale wherever relevant. Board Divisions Central functions Businesses

Board of Directors/ Key Personnel


Mr. Harish Manwani Mr D. Sundaram Mr Nitin Paranjpe Mr Hemant Bakshi Mr C.K Prahalad Mr D.S Parekh Mr Gopal Vittal Mr Sridhar Ramamurthy Chairman Vice chairman CEO & MD Executive Director sales & customer development Independent Director Independent Director Executive Director Executive Director & CFO

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History
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 21

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Mills Company (TOMCO) merged with HUL, effective from April 1, 1993. In 1996, HUL and yet 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 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 2000s. Project Shakti was started in 2001. It is a rural initiative that targets small villages populated by 22

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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. In January 2010, the HUL head office shifted from the landmark Lever House, at Backbay Reclamation, Mumbai to the new campus in Andheri (E), Mumbai. On 15th November, 2010, the Unilever Sustainable Living Plan was officially launched in India at New Delhi. In March, 2012 HULs state of the art Learning Centre was inaugurated at the Hindustan Unilever campus at Andheri, Mumbai. In April, 2012, the Customer Insight & Innovation Centre (CiiC) was inaugurated at the Hindustan Unilever campus at Andheri, Mumba

Heritage
HULs heritage dates back to 1888, when the first Unilever product, Sunlight, was introduced in India. Local manufacturing began in the 1930s with the establishment of subsidiary companies. They merged in 1956 to form Hindustan Lever Limited (The company was renamed Hindustan Unilever Limited on June 25, 2007). The company created history when it offered equity to Indian shareholders, becoming the first foreign subsidiary company to do so. Today, the company has more than three lakh resident shareholders. HULs brands -- like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Sunsilk, Clinic, Close-up, Pepsodent, Lakme, Brooke Bond, Kissan, Knorr, Annapurna, KwalityWalls - are household names across the country and span many categories - soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary products. They are manufactured in over 35 factories, several of them in backward areas 23

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of the country. The operations involve over 2,000 suppliers and associates. HUL's distribution network covers 6.3 million retail outlets including direct reach to over 1 million. HUL has traditionally been a company, which incorporates latest technology in all its operations. The Hindustan Lever Research Centre (now Hindustan Unilever Research Centre) was set up in 1958.

Social Initiatives
HUL believes that an organisations worth is also in the service it renders to the community. HUL focuses on hygiene, nutrition, enhancement of livelihoods, reduction of greenhouse gases and water footprint. 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 relief and rehabilitation of the people affected by the Tsunami disaster, in India. HULs Project Shakti is a rural initiative that targets small villages populated by less than 5000 individuals. 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 provides health and hygiene education through the Shakti Vani programme. The program now covers 15 states in India and has over 45,000 women entrepreneurs in its fold, reaching out to 100,000 villages and directly reaching to over three million rural consumers. HUL also runs a rural health programme, Lifebuoy Swasthya Chetana. The programme endeavors to induce adoption of hygienic practices among rural Indians and aims to bring down the incidence of diarrhoea. It has already touched 120 million people in approximately 50, 676 villages across India.

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OUT OF HOME BUSINESS


Have you caught the tail of a new trend in town? Have you as yet spotted the best of brands running into the terrain of out-of-home consumption? Running for cover from the meltdown in the in-home segment of consumption! Out-of-home branding is the new buzzword sweeping Indian shores. Brands that stubbornly remain indoors through their positioning and segmentation strategies are in for a jolt! Consider the facts. The Indian population is a young population. Life expectation is longer than before. Income standards are up. Except for a year of aberration, the Indian monsoon has largely behaved! Good monsoons mean a good crop. Large parts of the rural economy are a non tax-paying economy. Good rains spell good crops and good crops in turn spell a good amount of disposable income!

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

Sauce and ketchups are always been a part of major dishes. It is beyond the class boundaries. People of all age groups relish them. With globalization and expansion of retail business, markets etc the ready to serve food items have gained lot of demand. One can spot the fas food corners, eating points, restaurants and canteens almost everywherebe it Hospitals, Airports, Commercial complexes, offices, big markets and even local colony markets. Its popularity can be judged from the fact that in places like Prgati Maidan you may found various fast food stalls and restaurants everywhere.

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As the culture of Fast Food is increasing the demand of taste adders and makers like sauces and ketchups are also increasing. People are now educated and are thinking more and more of hygiene. They trust on reliable brands like HUL, P&G etc as they provide hygienically tested packed products. Kissan provides various types of sauces and ketchups packed in various quantities to help the food lovers to be served.

Happy people are productive people. This is the basic rule of any company. Big or small, every employer tries at keeping his employees, customers and clients happy. Imagine if an organization has a wide range of refreshments to grab, at fingertips; if they could enjoy getting a whole load of refreshments as and when they wished for it. Lever foods service gives them this freedom. Available in near about with all retailers and kitchens, they are the complete taste solutions for an organization.

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Unilever Food Solutions


Inspiration every day

We help chefs all over the world serve tasty, wholesome meals that keep guests coming back for more. We create ingredients that save precious prep time in the kitchen, without compromising on flavour or flair. And constantly provide ideas and inspiration that keep your menu fresh and exciting. We know food service Weve been in food since the 1880s, and home to some of the worlds favourite brands: Knorr, Hellmanns, Lipton and more. We work closely with businesses of all sizes, from independent restaurants through to hotels chains and contract caterers, in 74 countries. So we understand that critical balance between impressing your guests and making a profit. For chefs by chefs As part of Unilever, we understand consumers, your guests. We use this knowledge to help chefs and caterers keep up with peoples changing tastes. With our team of highly skilled chefs and nutritionists, we help our customers to find the right balance of great tasting and nutritious food served up to the same consistently high standards. Through our widespread presence we can make cuisine ideas travel. Growing for the future We always care about putting healthy and nutritious food on the table, but we also care about our impact on the earth. Using ingredients and packaging that are sustainably sourced, generate less waste and consume less energy is all part of our environmentally responsible way of doing business. Food matters to us Thats why you can trust us to help you satisfy your most discerning guests. 27

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Our Sustainability Journey

Today, people are more aware of the journey their food makes from the field to their plate. In these insecure times, they are trying to take greater control of their lives. Eating healthy food and taking care of the planet are becoming increasingly important. The number of people listing health has their number one concern has increased consistently since Oct 08, even through tough economic times.* *Nielsen Global Online Survey April 09 to March 2010 ConsumerConfidence GB results People are looking for products they trust. They want products from companies that are transparent in their communications and behaviour. They want to feel that their consumption choices are making a contribution to the world and their local community. Hand in hand

For chefs and caterers it is increasingly important to offer a guest experience in line with these expectations. It is about tasty and nutritious dishes made with natural ingredients and sourced in a socially and environmentally responsible way. And it is about cooking in a more efficient way generating less waste and using less energy. 28

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We work with you to develop innovative solutions to help match your guests health and environmental demands. For instance, we look for new techniques to become more efficient in meal preparation and presentation. We provide support and advice on how to use less water and reduce energy and waste. Of course, in these services, taste and health stay top-of-mind. Our support to healthier solutions can take several forms. For example, we help to boost the consumption of vegetables by making these more appealing. We develop healthier foods that are attractive and convenient alternatives. So we are progressively reducing salt in our products by changing recipes, using salt replacements and enhancing flavours with other ingredients like herbs and spices. Nutritional training for chefs and caterers and for our own people is high on our agenda. To read more about Unilevers sustainability approach, visit the Unilever Website or visit the website growingforthefuture. Inspirational Cases A clear vision, of course, is the starting point for everything. But it must be followed up with practical actions in order to translate our vision into tangible results. These actions involve improving our own activities and encouraging our consumers and suppliers to do the same. We are proud of our achievements in the area of sustainability and health & wellness. The case studies illustrate some of our deliveries so far.

Overview of HUL
Company Turnover 2011 (Euro Million) 2600 150 450 300

HUL P&G Nestle Colgate

The above table shows the leadership and dominance of HUL over all other significant FMCG brands thus providing credibility to the claim of being a market leader. The diagram below shows the contribution of various divisions in HULs product portfolio:29

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HUL structure

9% 1% 4% 11% 47%

28%

Home Care

Personal care

Foods

It is clear that the largest contributor is the Home Care division with a 47% share in the Icecreams Beverages Others total revenue while the personal care division contributes 28%. The organizational diagrams below show the hierarchy in HUL: -

HUL FOODS OVERVIEW


The aim is to Build a 1.4 Billion Euro foods business through brands that make a real difference to the Indian consumer by helping them enjoy food, enjoy health and enjoy life

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This vision to build a 1.4 Billion Euro Foods Business has a targeted CAGR of 21% seen as crucial to fulfill its ambition of being the No 1 foods & vitality company by 2015.

2008

2011

2015

ICD 7% Foods 24% Beverages 69%

ICD 10%

ICD 10%

Foods 28%

Beverages 62%

Foods 35%

Beverages 55%

The Packaged Food Market in India is estimated at around 10 Billion and 80% of this is urban with a rapid historical growth: 13%. It is poised to accelerate. But the bulk of food in India is still consumed fresh, that is, unpackaged. This is clearly visible as 95% of the 200 Billion Euro Foods market is unpacked.

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Introduction to the Subject

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Introduction to the subject

Ketchup and Sauce Brands in India


Pizzas, Burgers and Pastas were once almost unheard off in India. Today kids in the country swear by these. Pizzas and burgers have successfully managed to replace the traditional Indian dal and rice at least for the school and college kid.

Spread across the various important cities and towns of the country are the many fast food joints. Till a few years back the fast food market in India was not a very prominent industry mostly because there were less of fast food joints and disposable incomes. But with the growth of both these elements the fast food market in India received a boost.

Fast food and ketchup are directly proportional to one another. The sweet and tangy taste provided by ketchup adds to the entire experience of a delicious or finger licking meal. Thus the rise in the demand for fast food has resulted in the rise in the demand for ketchup in India.

With the growing patterns of fast food consumption in the country the need for ketchup is also increasing. According to a recent survey conducted by Down to Earth it is estimated that Indians spend about ` 4,449 crore a year in fast-food centers.

International fast food chains like McDonalds and KFC have almost found a second home in India. Initially these fast food giants were simply restricted to some of the metros with just one or two outlets but with the changing trend in consumption these fast food chains have penetrated to almost all the Indian cities and towns.

Currently the Indian ketchup market is valued at` 220 crore. The top Ketchup Brands in India are Maggi Kissan and Heinz. Nestle's Maggi leads the Indian ketchup market with a market share of 37 per cent. Hinductan Unilever Limited's Kissan follows with a market 33

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share of 29 per cent and Heinz holds a total market share of around 10 percent. There are also a host of local ketchup brands that account for the rest of the market share of the ketchup industry in India. According to industry experts there is still abundant scope for improvement as ketchup penetration is low in the rural areas. Even in urban areas people do not consume much of ketchup in the house.

Tomato Sauce is consumed by every age group. It is a good accompaniment for a variety of cuisines including Indian, Thai, French, Australian, Italian and Mexican. You can have tomato sauce as a part of your dish or in the form of toppings. Many prefer to have tomato sauce to accentuate the flavor of every bite that they take. Only a small section of people rely on home-made tomato sauce recipes. Otherwise, most people from current generation like to use the ready-made sauce offered by the key brand companies like Maggi, Kissan, Heinz and Delmonte.

One of the most common names in the retail industry, Maggi offers you a variety of ready to use tomato sauce. The product range of this company is SIRIM certified. While making sauce, the company pays full attention to the health needs of the consumers. It does not add any artificial coloring or preservatives in content. If you want to relish barbeques, grilled items or deep fries, you can look for the following varieties offered by this key brand company:

Tomato Ketchup Chili Sauce Chili Garlic Thai Chili Sauce Hot Chili Sauce Hot & Sweet Chilli Sauce

Among the major tomato sauce brands in India, Kissan is best known for its quality ketchup offerings. The company manufactures sauce with fresh ripe tomatoes. It uses vegetables, sugar, vinegar and salt in ingredients. Its best tomato sauce range in the market is popular as Tomato Ketchup.

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Heinz is a global brand and gradually, it is catching up Indian market too. The company has manufactured different flavors of tomato sauce to suit every palate. Its recipe goes well with burgers, Samosas (a type of Indian snack), French fries and sandwiches. In fact, the little kids use Heinz tomato sauce with meals too. Some of the popular tomato sauce products of this company that can be availed in glass/ top-down bottles or sachets are:

Tomato Ketchup Tomato Chili Sauce

Delmonte is a new entry among the key brand companies in India in tomato sauce segment. The company has brought for its consumers a mixed surprise of sweet and spicy flavors forming a joint venture with Bharti Enterprises. However, the highlight of the companys product is the addition of fruity flavor to the usual tomato base. In market, you can look for the two exciting flavors of the company including:

Zingo Twango

Cremica
The CREMICA Group, a widely diversified food products company from India, is an acknowledged frontrunner in both food retailing and food services industry. Established as a small enterprise by Mrs. Bector, a passionate food enthusiast, three decades ago, the group is today known for its lip smacking range of Sauces, Mayonnaise, Toppings, Syrups, Biscuits, Indian Snack Foods, Stabilizer Blends and Ice creams. Through its commitment to taste and quality, CREMICA has emerged as a preferred consumer brand and a leading supplier to Indian and global food majors.

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Major Competitors of KISSAN


Del monte
Del Monte Foods is one of the country's largest and most well-known producers, distributors and marketers of premium quality, branded food and pet products for the U.S. retail market, generating approximately $3.7 billion in net sales in fiscal 2010. With a powerful portfolio of brands, Del Monte products are found in eight out of ten U.S. households. Pet food and pet snacks brands include Meow Mix, Kibbles 'n Bits, Milk-Bone, 9Lives, Pup-Peroni, Gravy Train, Nature's Recipe, Canine CarryOuts and other brand names. Food product brands include Del Monte, S&W, Contadina, College Inn, and other brand names. The Company also produces and distributes private label food and pet products.

Cremica
The CREMICA Group, a widely diversified food products company from India, is an acknowledged frontrunner in both food retailing and food services industry. Established as a small enterprise by Mrs. Bector, a passionate food enthusiast, three decades ago, the group has today metamorphosed into a huge food products conglomerate. The Group has been constantly setting benchmarks for the food processing industry through its incomparable products, innovative flavours and fillings, internationally certified production facilities, consistent quality and unmatched expertise. This coupled with the groups commitment to healthy eating has enabled it to emerge as a preferred consumer brand and a leading supplier to Indian and global food majors.

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Heinz
A World of Good Food The H.J. Heinz Company, headquartered in Pittsburgh, Pennsylvania, is the most global of all U.S.-based food companies. Famous for our iconic brands on five continents, Heinz provides delicious, nutritious and convenient foods for families in 200 countries around the world. In more than 50 of those countries, we enjoy the number-one or number-two market position. To learn more visit www.heinz.com. Heinz in India Heinz came to India in 1994 by taking over the Family Products Division of Glaxo with powerful brands such as Complan, Glucon-D, Nycil and Sampriti. Heinz India is fully integrated into the global Heinz operations employing high standards in quality at its state-of-the-art manufacturing facility at Aligarh in the State of Uttar Pradesh. This manufacturing facility is HACCP certified and follows GFMP (Good Food Manufacturing Practices) to deliver nutritious and safe food products to our discerning consumers. Heinz in India provides taste and nutrition through globally trusted products like Heinz Tomato Ketchup and strong local products like Complan - with extra growing power, Glucon-D - the refreshing energy drink, Nycil - the most effective prickly heat powder and Sampriti Ghee - Mahek bhara swaad. Heinz products synergize the three pillars of the Heinz tradition namely TRUST, TASTE & NUTRITION. Today, iconic brands like Complan & Heinz and category leaders like Glucon D & Nycil are being nurtured with a combination of formulation and flavour upgradation, packaging innovations and new positioning strategies with strong equity quotients.

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Category Roles
The following are the category rules that planned on achieving in various foods products:1) Savoury They planned to convert from scratch cooking to Packaged 2) Tea- In Tea they planned on becoming the undisputed #1 in India by upgrading faster than Tata. 3) Ice-Cream- Here they thought of building a habit of consumption among consumers which was related to the idea of driving frequency. 4) Instant Coffee- Here their main aim was to garner non-south shares as the maximum frequency of consumption was taking place in southern India. 5) Dressings- In this category they planned to convert from home-made to packaged dressings & drive frequency. 6) Spreads In spreads they wanted to provide a substitute to butter 7) Kids Nutrition- They aimed at getting a share of the Kids Functional Foods Market. 8) Non-Carbonated Beverages- The aim in this category was to gain a share in the non-carbonated market using Soya. 9) Heart Health This was one particular space they wished to succeed in by successfully substituting unhealthy fats with healthy fats.

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The following table shows the market share and position of various components of HUL Foods (Kissan) against its closest competitor in the category:-

Category Ketchups

Brand Kissan Maggi Heinz Others Kissan Kissan Knorr Maggi Annapurna Tata HUL Tata HUL Nestle

2011 % 29 37 10 24 68 50 70 26 16 22 22 21 46.9 40

Jams Squashes Soups Salt Tea Coffee

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KISSAN OVERVIEW Birth of Kissan


The Independence of India also saw another fruitful birth, Kissan. The name that was to make millions of people add a little more flavor to their food. The year was 1935, Trains traversing across the Punjab would make an unofficial stop near a processing unit where the farmers sold their freshly picked fruit. In return, the drivers got a luscious hamper. Soon the locals named this spot Kissan. What started as a "short-break" went on to become the brand KISSAN in 1947, when the famous Mitchell Brothers of UK set up a manufacturing unit in Bangalore. They introduced the naturally wholesome flavor of classic Olde English recipes. In 1950, Vittal Mallya with his legendary foresight acquired Kissan. And revolutionized the canning and bottling industry by introducing the latest techniques which subsequently led to the phenomenal growth of Kissan. Today, Kissan is the market leader offering a range of delicious products which include fruit juices, squashes and syrups, jams, marmalade and fruit jelly, baked beans, canned green peas, pineapple slices and biscuits. Fresh handpicked tomatoes are also the source of Kissan's finger licking ketchup and sauces, great tasting tomato juice and the housewife's favorite tomato puree. Today, Kissan cherishes an international fame that is well deserved. Every fruit and vegetable is picked with the greatest care and cleaned, washed, and processed under the most stringent quality control procedures. In fact, a team of highly qualified horticulturists on experimentation in farms ensure the development of richer fruit and vegetable strains and more successful farming methods. Besides, R&D at Kissan is committed to bettering its products and is constantly delighting consumers with new and better flavors that tantalize the palate. Kissan has won several international and national accolades, including the highly coveted 'Le Monde' at Brussels and Productivity, Performance and Quality awards in the fruit and vegetable processing industry. Overseas the demand for Kissan is ever increasing. Kissan exports to Europe North and South America, the Middle and Far East markets. The perennial favorites are mango, papaya and guava pulp, apple juice orange juice, mango slices and mushrooms. Kissan, Four decades ago they began as a food enhancer. Today, for millions of people, they are a part of every meal, cherished by young and old alike.

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Kissan Tomato Ketchup Parent Company Category Sector Tagline/ Slogan USP HUL Food Product Food Products Just Lagao Kuch Bhi Khao Most well renowned ketchup brand STP Segment Target Group Positioning People who want to add a taste with everything they have All people in the upper and middle class Makes food interesting SWOT Analysis 1. Strong brand name 2.Excellent advertising and visibility Strength Weakness 3.Good product distribution and availability 1.Not too thick 1. Tie-ups with corporates Opportunity Threats 2.Cheaper packets for rural areas 1.Threat from other ketchups and local homemade chutneys

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Competition 1.Heinz ketchup 2.Delmonte ketchup Competitors 3.Cremica

Products offered by Kissan in Food solution

KISSAN Sauce Maker 6 x 1. 7 kg

Article Code: KSQSM Container: Case Packaging: 6 x 1,7 kg Brand: KISSAN Subbrand: Kissan Sauce Maker Category: Sauces

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Preparation Take 2., liter water. Add 1,2 Kg sugar and dissolve. Add 200 g masala mix and 1,5 Kg Tomato Paste to make slurry. Bring to boil while stirring continuously. Cool and serve. Productiveness- 1,7 Kg of Kissan Sauce Maker makes 5 Kg of Tomato Ketchup. Storage- Ambient Shelflife- 5 months

KISSSAN Tomato Paste 12 x 1 kg

Article Code: TVKA1 Container: Case Packaging: 12 x 1 kg Brand: KISSAN Subbrand: Kissan Tomato Paste Category: Sauces

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KISSAN Tomato Puree 12 x 1 kg

Article Code: TPKA1 Container: Case Packaging: 12 x 1 kg Brand: KISSAN Subbrand: Kissan Tomato Puree Category: Sauces

KISSAN Tomato Ketchup Sachet 960 x 9 g

Article Code: ASBSG Container: Case Packaging: 960 x 9 g Brand: KISSAN Subbrand: Kissan Tomato Ketchup Sachet Category: Sauces Storage- Ambient Shelflife- 6 months

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KISSAN Sauce Dip 12 x 1 kg

Article Code: AYKN8 Container: Case Packaging: 12 x 1 kg Brand: KISSAN Subbrand: Kissan Sauce DIp Category: Sauces Storage - Ambient Shelflife- 6 months

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KNORR DEMI GLACE SAUCE POWDER

Article Code: CSUC1 Container: Case Packaging: 24 x 5 x 100 g Brand: KNORR Subbrand: DEMI GLACE SAUCE POWDER Category: Sauces Properties - Prepared from quality chicken bones. Classsical base for most brown sauces. Preparation Can be used in making sauces like Madiera, Pepper, Mushroom and Burgundy sauce. Can be used in Continental food like steaks, sizzlers, etc. Ideal for serving with all meats and poultry. Productiveness - 100 g = 1 lt. 500 g = 5 lt. Benefits - Saves a lot of time, energy and labour. Ready to use in few minutes. Gives consistent taste. Storage - ambient Shelflife - 9 months

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Brand Building Pyramid

Kissan 2008 Kissan 2006


9% 51% 58% 76% 98%

Jams
Bonding g Advantage Performance
99% 66% 98% 98%

KETCHUP
68 % 99 % 99 % 100 % 79 % 97 % 97 % 97 % 99 % 50 % 86 % 99 % 98 %

Relevance Presence

99%

Kissan 2011 Jams


69%
76% 98% 99% 100%

Ketchup
69% 90% 92% 95% 97%
73% 95% 97% 98%

91%
93% 94% 94%

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From the above figures it can be seen that up to 2006 Kissan lacked dynamism mainly due to dated packaging, limited communication to the consumers, absence of a common message and a push based approach rather than a pull based one. As a result, the extension away from the core was short lived and resulted in the erosion of its equity and core values. Thus performance suffered as a whole. But in the following years the brand built on its performance which can be seen by the higher advantage and bonding it developed with the consumers in 2008 and continued with that in 2011.

Kissan Turnaround Story


The following was the approach that was adopted by Kissan that led to a turnaround in their business:1. Earlier there was an absence of a common brand thought across categories 2. There was a lot of constraint on resources to support and build 3. The strategy that was adopted was built around the idea of shifting from a category focus to a brand focus 4. The other crucial idea was to pitch Kissan as the ideal accompaniment to snack food 5. The belief in the mind of the consumers as interpreted by Kissan was that the snack is always the Hero and the accompaniment is only the side kick 6. As a result it was decided that to ensure higher profitability brands role must be underplayed so as to connect with the current consumer reality

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Literature review

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Literature Review
In cooking, a sauce is liquid, creaming or semi-solid food served on or used in preparing other foods. Sauces are not normally consumed by themselves; they add flavor, moisture, and visual appeal to another dish. Sauce is a French word taken from the Latin salsus, meaning salted. Possibly the oldest sauce recorded is garum, the fish sauce used by the Ancient Romans. Sauces need a liquid component, but some sauces (for example, pico de gallo salsa or chutney) may contain more solid elements than liquid. Sauces are an essential element in cuisines all over the world. Sauces may be used for savory dishes or for desserts. They can be prepared and served cold, like mayonnaise, prepared cold but served lukewarm like pesto, or can be cooked like bechamel and served warm or again cooked and served cold like apple sauce. Some sauces are industrial inventions like Worcestershire sauce, HP sauce, or nowadays mostly bought ready-made like soy sauce or ketchup, other are still freshly prepared by the cook. Sauces for salads are called salad dressing. Sauces made by deglazing a pan are called pan sauces. A cook who specializes in making sauces is a saucier. Sauces used in traditional Japanese cuisine are usually based on shyu (soy sauce), miso or dashi. Ponzu, citrus-flavored soy sauce, and yakitori no tare, sweetened rich soy sauce, are examples of shoyu-based sauces. Miso-based sauces include gomamiso, miso with ground sesame, and amamiso, sweetened miso. In modern Japanese cuisine, the word "sauce" often refers to Worcestershire sauce, introduced in the 19th century and modified to suit Japanese tastes. Tonkatsu, okonomiyaki, and yakisoba sauces are based on this sauce. Japanese horseradish or wasabi sauce is used on sushi and sashimi or mixed with soy sauce to make wasabi-joyu. Some sauces in Chinese cuisine are soy sauce, doubanjiang, hoisin sauce, sweet bean sauce, chili sauces, oyster sauce, and sweet and sour sauce. Korean cuisine uses sauces such as doenjang, gochujang, samjang, and soy sauce. Southeast Asian cuisines, such as Thai and Vietnamese cuisine, often use fish sauce, made from fermented fish. Indian cuisine uses sauces such as tomato-based curry sauces, tamarind sauce, coconut milk-/paste-based sauces, and chutneys. Salsas ("sauces" in Spanish) such as pico de gallo (salsa tricolor), salsa cocida, salsa verde, and salsa roja are a crucial part of many Latino cuisines in the Americas and Europe. Typical ingredients include tomato, onion, and spices; thicker sauces often contain avocado. Mexican cuisine uses a sauce based on chocolate and chillies known as mole. Argentine cooking uses more Italian-derived sauces, such as tomato sauce, cream sauce, or pink sauce (the two mixed). Peruvian cuisine uses sauces based mostly in different varieties of aj combined with several ingredients most notably salsa huancana based on fresh cheese and salsa de 50

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ocopa based on peanuts or nuts. It is said that each household in the country has its own secret salsa recipe. French cuisine "Sauces are the splendor and the glory of French cooking" ~ Julia Child Sauces in French cuisine date back to the Middle Ages. There were many hundreds of sauces in the culinary repertoire. In 'classical' French cooking (19th and 20th century until nouvelle cuisine), sauces were a major defining characteristic of French cuisine. In the early 19th century, the chef Antonin Carme created an extensive list of sauces, many of which were original recipes. It is unknown how many sauces Carme is responsible for, but it was estimated to be in the hundreds. In the late 19th century, and early 20th century, the chef Auguste Escoffier consolidated Carme's list to five mother sauces. They are: Sauce Bchamel, milk-based sauce, thickened with a white roux. Sauce Espagnole, a fortified brown veal stock sauce. Sauce Velout, white stock-based sauce, thickened with a roux or a liaison. Sauce Hollandaise, an emulsion of egg yolk, butter and lemon or vinegar. Sauce Tomate, tomato-based A sauce which is derived from one of the mother sauces by augmenting with additional ingredients is sometimes called a small sauce or secondary sauce. Most sauces commonly used in classical cuisine are small sauces. For example, Bechamel can be made into Mornay by the addition of grated cheese, and Espagnole becomes Bordelaise with the addition of reduction of red wine, shallots, and poached beef marrow. A mayonnaise becomes a Sauce Remoulade with the addition of onion, anchovies, parsley, and pickles.

In the European traditions, sauces are often served in a sauce boat. British cuisine Gravy is a traditional sauce used on roast dinner, which (traditionally) comprises roast potatoes, roast meat, boiled vegetables and optional Yorkshire puddings. The sole survivor of the medieval bread-thickened sauces, bread sauce is one of the oldest sauces in British cooking, flavored with spices brought in during the first returns of the spice missions across the globe and thickened with dried bread. Apple sauce, mint sauce and horseradish sauce are also used on meat (pork, lamb and beef respectively). Salad cream is sometimes used on salads. Ketchup and brown sauce are used on more fast-food type dishes. Strong English mustard (as well as French or American mustard) are also used on various foods, as is Worcestershire sauce. Custard is a popular dessert sauce. Some of these sauce traditions have been exported to ex-colonies such as the USA[citation needed]. [edit]Italian cuisine Italian sauces reflect the rich variety of the Italian cuisine and can be divided in different categories: [edit]Savory sauces used for dressing meats, fish and vegetables Example are: Bagna cauda from Piedmont Salmoriglio from Sicily Gremolata from Milan 51

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Salsa verde from Emilia-Romagna and Tuscany Savory sauces used to dress pasta dishes There are thousands of such sauces, and many towns have traditional sauces. Among the internationally well-known are: Rag alla Bolognese as the name suggest from Bologna Pesto from Genoa Carbonara and Amatriciana from Lazio [edit]Dessert sauces Zabajone from Piedemont Crema pasticciera made with eggs and milk and common in the whole peninsula "Crema al mascarpone" used to make Tiramis and to dress panettone at Christmas and common in the North of the country. [edit]Sauce variations

Caramel sauce There are also many sauces based on tomato (such as tomato ketchup and tomato sauce), other vegetables and various spices. Although the word 'ketchup' by itself usually refers to tomato ketchup, it may also be used to describe sauces from other vegetables or fruits. Sauces can also be sweet, and used either hot or cold to accompany and garnish a dessert. Another kind of sauce is made from stewed fruit, usually strained to remove skin and fibers and often sweetened. Such sauces, including apple sauce and cranberry sauce, are often eaten with specific other foods (apple sauce with pork, ham, or potato pancakes; cranberry sauce with poultry) or served as desserts. Tomato sauce From Wikipedia, the free encyclopedia This article is about the sauces often used with pasta or pizza. In some countries, "tomato sauce" can also refer to ketchup. This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (April 2009)

Spaghetti with tomato sauce and cheese. Tomato sauce is any of a very large number of sauces made primarily from tomatoes, usually to be served as part of a dish (rather than as a condiment). Tomato sauces are common for meat and vegetables, but they are perhaps best known as sauces for pasta dishes. Tomatoes have a rich flavour, high liquid content, very soft flesh which breaks down easily, and the right composition to thicken into a sauce when they are cooked (without the need of thickeners like roux). All of these qualities make them ideal for simple and appealing sauces. The simplest tomato sauces consist just of chopped tomato flesh (with

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the skins and seeds optionally removed), cooked in a little olive oil and simmered until it loses its raw flavour, and seasoned with salt. Water (or another, more flavourful liquid such as stock or wine) is sometimes added to keep it from drying out too much. Onion and garlic are almost always sweated or sauted at the beginning before the tomato is added. Other seasonings typically include basil, oregano, parsley, and possibly some spicy red pepper or black pepper. Ground or chopped meat is also common. In countries such as Australia, New Zealand, South Africa and the United Kingdom, the term "tomato sauce" is used to describe a condiment similar to that known in the United States as 'ketchup'.[1] In some of these countries, both terms are used for the condiment. The use of tomato sauce with pasta appears for the first time in the Italian cookbook L'Apicio moderno, by Roman chef Francesco Leonardi, edited in 1790.

A tomato-based sauce containing tomato puree, diced tomatoes, and bell peppers (red, yellow, and green) with the seeds included. It is seasoned with fresh garlic, basil, oregano, paprika, cajun seasoning, crushed red pepper, parsley, olive oil, and possibly some additional seasonings. Contents French The sauce tomate of classical French cooking, as codified by Auguste Escoffier, consists of salt belly of pork, onions, bay leaves, thyme, tomato pure or fresh tomatoes, roux, garlic, salt, sugar, and pepper. Many times, butter and flour will be listed in the ingredients, but those are only used to make the roux (thickening agent). Roux is made of equal parts by weight of flour and butter. Any extra flour or butter that is called for in the recipe is typically an error.

New Zealand and Australia The most common use of the term tomato sauce in New Zealand and Australia is to describe a commercially produced condiment similar to American ketchup.

Italian Penne pasta served with tomato sauce The misconception that the tomato has been central to Italian cuisine since its introduction from the Americas is often repeated. Though the tomato was introduced from the Spanish New World to European botanists in the 16th century, tomato sauce made a relatively late entry in Italian cuisine: in Antonio Latini's cookbook Lo scalco alla moderna (Naples, 1692).[5] Latini, not unsurprisingly, was chef to the Spanish viceroy of Naples, and one of his tomato recipes is for sauce alla spagnuola, "in the Spanish style."

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The use of tomato sauce with pasta appears for the first time in the Italian cookbook L'Apicio moderno, by Roman chef Francesco Leonardi, edited in 1790. Italian varieties of tomato sauce range from puttanesca sauce, seasoned with anchovies, capers, garlic, chili peppers and black olives, to Bolognese sauce, a predominantly minced- or ground- meat sauce which normally contains a small amount of tomato. [edit]Mexican Main article: Salsa (sauce) Tomato sauce was an ancient condiment in Aztec food. The first western person to write of what may have been a tomato sauce was Bernardino de Sahagn, who made note of a prepared sauce that was offered for sale in the markets of Tenochtitlan (Mexico City today). Then, Spaniards brought the use of tomato to Europe. Basic Mexican tomato sauces are tomato sauce (salsa de tomate rojo o jitomate) and green sauce (salsa de tomate verde). The tomato sauce is stock for spicy sauces and moles. United States

A can of tomato pure

Ingredients to make a US style marinara sauce. In most of the U.S., "tomato sauce" refers to a tomato concentrate with salt, herbs and small amounts of spices and often flavored with meat or seafood. This product is considered incomplete and not normally used as it is. Instead, it is used as a base for almost any food which needs a lot of tomato flavor, including versions of many of the sauces described on this page. Tomato pure and tomato paste have FDA standards of identity (since 1939) for percentage of tomato solids, and generally do not contain seasonings other than salt; tomato sauce is nonstandardized. Marinara sauce is an Italian-American term for a simple tomato sauce with herbs mostly parsley and basilbut, contrary to what the name might suggest ('marinara' is Italian for "sailor-style") without anchovies, fish, or seafood. In Italy, marinara refers either to sauces made with tomato and garlic (as in pizza marinara) or to seafood-based sauces or foods; in this case, the name does not imply that tomato is either included or excluded. Some Italian Americans on the East Coast and around the Chicago area refer to tomato sauce as "gravy", "tomato gravy", or "Sunday gravy", especially sauces with a large quantity of meat simmered in them, similar to the Italian Neapolitan rag. "Gravy" is an erroneous English translation from the Italian sugo which means juice, but can also mean sauce (as in sugo per pastasciutta). The expression for "gravy" in Italian is sugo d'arrosto, which is literally "juice of a roast" and is not specifically tomato sauce. American supermarkets commonly carry a variety of prepared tomato sauces described as "spaghetti sauce" or "pasta sauce." Common variations include meat sauce, marinara sauce, and sauces with mushrooms or sweet red peppers.

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Louisiana A spicy tomato sauce known as sauce piquante is common in Louisiana Cajun cuisine, that can contain any seafood, poultry, or meats such as wild game. It is typically served over white rice. In Louisiana Creole cuisine, there is a tomato sauce known as a Creole sauce. It is similar to Italian tomato sauce, but features more Louisiana flavors derived from the fusion of French and Spanish cooking styles. They both usually contain the traditional holy trinity of diced bell pepper, onion, and celery. Tomato gravy Tomato gravy, which is distinct from the term as used by Italian Americans when referring to a type of tomato sauce particularly where tomatoes were a staple food. The cooked tomatoes, some fat (usually cured pork fat) and flour are cooked together until thick, and seasoned with salt and pepper. Onions or bell peppers may be added as well. Typically, tomato gravy is served over pasta.

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Objectives

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OBJECTIVES
The main objective of the study to utilize my theoretical knowledge in realm of marketing world to understand the complex/ competitive market situations and gain experience with the organization, where I utilise seven weeks time to understand the difference between practical and theoretical knowledge.

The study has been conducted to understand the detail study of all the aspects of retailing concerned with the HULs. The specific objective, which under taken in my study, is to understand the corporate sale, the competitive brands of HULs ie Del Monte, Cremica etc and walk through the product sale in corporate world which reflect my own personal views and measures even the near by areas with hidden opportunity

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Research methodology

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GL Bajaj Institute of Management and Research, Greater Noida

Research Methodology
MARKET RESEARCH:
Marketing research has become most important tool for decision making in the field of marketing due to the following reasons. Business environment is changes very rapidly which needs to continuous modification and improvement. It provides correct and reliable information about customer, competitors and ones own activities to the manager, so that the huge amount spent on marketing activities to be utilized properly. Since modern business is customer oriented, it (MR) provides the producer a systematic and analytical approach based on assessment on customer requirements, which helps the producer in maximization of net profit by producing such products that fulfill the customers utmost level of satisfaction.

Thus marketing research is a systematic gathering, recording and analysis of data about the problem facing the company. It helps the marketing manager to develop and analyze new information, which is further helpful in developing marketing strategy. Now it can be said that marketing research covers a very wide variety of activities ranging from analysis of marketing potential and market share to studies of customers satisfaction and purchase intention.

METHODOLOGY:
The basic needs of any research are data and method of collecting it. Data is an information on the basis of which inference are drawn, therefore, data become a very important and vital factor in research study. The main purpose behind framing a 59

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methodology is to desirable the research procedure which includes research design, data sources, data collection method, research instructions, and sampling plan.

RESEARCH DESIGN:
It consists of clean statement of the research problem procedures and information processing and analysis of data collected. It includes hypothesis also. I have used Descriptive Research which includes survey and fact-finding enquiries of different kinds. The main characteristics of this method are that the researchers have no control over the variables; he can only report what has happened or what is happening. The major purpose of descriptive research is description of the state of affairs as exists as present. e FMCG Company.

Descriptive research design: Descriptive research was used in the study of marketing strategies for the sale of companys product also studying about the parameters which affect the competitiveness of the product.

Analytical research
:- in this kind of research researcher uses facts or information which are already available and analysis these for critical and rational facts of the past and present trends in the demand and consumption, quality of product, packaging methods, supply and distribution and analyzed them for critical result and suggestion some recommendation.

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COLLECTION OF DATA:

DATA SOURCE: The various sources of information can be broadly divided into
two categories. Primary source Secondary source

Primary source: Sources from where first hand information is gathered directly are
called PRIMARY DATA. In case of the above study primary source of collecting data was provided by the company.

Secondary data: The source of information, already gathered for some other purpose
from other sources such data are called secondary data. These data can be available from different magazines, journals and company profiles. So, with regards to my study to collect the secondary data I went through the company records, magazines, internet and news papers.

DATA COLLECTION METHOD


The following method is widely used for collecting data: Questionnaire In the above-mentioned method, questionnaire methods were mainly used for the undertaken topic. Survey method was mostly used for collecting data through Questionnaire study with the helped of the framed questionnaire. regarding survey a detailed study are conducted which is consists of areas covering of all the aspects of corporate sector, this survey is also includes the detail understanding of all the competitive brands of HUL through the framed questionnaire to

understand the physiology of the competitors, further, an o study will be conducted of own walk in different companies to identify the hidden 61

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opportunities in the near by areas, according to the need and permission of the very organization on behalf on which I was appointed for the survey.

Sampling Plan
Sampling methods: Random Convenience sampling has been used for the purpose of
those consumers and prospective customers as it helped in knowing the no. of users of coffee products and convenient sampling methods was used for distributers in distance place as accessibility had emerged as a problem in some cases.

Sampling unit: - It defines the target population that will sample together for carrying
out the analysis. Here it includes different areas and households.

Sampling size: - For conducting the study distribution channel system of HUL. Sample Area: Lucknow Sample Size: 20 Respondents.

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Data analysis

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Data Analysis
DATA ANALYSIS AND INTERPRETATION
1) Please tick the appropriate box regarding your consumption. Table No. 1 No. of Respondent 0-1 kg/month 2-3 kg/month 4-5 kg/month 5+ kg/month 2 2 15 1 Percentage (%) 10 10 75 5

Graph: 1
1 2 2 0-1 kg/month 0-2 2-3 kg/month 0-3 4-5 kg/month 15 0-4 5+ kg/month

Interpretation: 75% of Respondents consumer 4-5 kg/month, 10% of respondent equally consume 0-1 kg/month and 2-3 kg/month , and remaining 5% respondent consume 0.45+ kg/month

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2) From which source do you buy sauce? Table No. 2 No. of Respondent Distributer Retail store 15 5 Percentage (%) 75 25

Graph: 2

25

Distributer Retail store 75

Interpretation: 75% of Respondents says they buy coffee from distributers and remaining 25% says retail store.

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3) Which food type you mostly use tomato sauce with? Table No. 3 No. of Respondent Chinese Snacks Both Others 4 4 10 2 Percentage (%) 20 20 50 20

Graph: 3

10%

20%

Chinese 20% 50% Snacks Both Others

Interpretation: 50% of Respondents says that they use it both with Chinese and snacks while 20% of them think they use it in Chinese and snacks respectively, remaining 10% says they use them in other food types.

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4) Do you get proper delivery at proper time? Table No. 4 No. of Respondent Yes No 18 2 Percentage (%) 90 10

Graph: 4

Yes

No

Interpretation: 90% of Respondents says they get proper delivery at proper time while 10 % of them were unsatisfied.

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5) Are you satisfied by the products you use. If Not then why? Table No. 5 No. of Respondent Yes No 20 0 Percentage (%) 100 0

Graph: 5

YES NO 100

Interpretation: 100% of Respondents says they are satisfied by the products.

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6) What is the best substitute available of your product? Table No. 6 No. of Respondent Kissan Cremica Del Monte Heinz 8 8 4 0 Percentage (%) 40 40 20 20

Graph: 6
0% 20% 40% Kissan Cremica Del monte 40% Heinz

Interpretation: 40% of people think that if they will try substitute of their product they will be cremica and kissan respectively while 20% of them think they will use Del Monte.

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7) Which brand of sauce consumer like the most? Table No. 7 No. of Respondent Kissan Cremica Del Monte Heinz 12 6 2 0 Percentage (%) 60 30 10 0

Graph: 6
0% 10%

30% 60%

Kissan Cremica Del monte Heinz

Interpretation: 60% of Respondents says that the consumers like Kissan, 30% of them say that the consumers like cremica while the remaining 10% are with Del Monte.

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Swot analysis

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STRENGTHS Strong and well differentiated brands with leading share positions. High quality and safe products, endorsed by the Hindustan Unilever Limited Seal of Guarantee at affordable prices. Strong R&D capability well linked with business ensuring better controls on the quality and consistency of product. Integrated and efficient supply chain and well spread manufacturing units. Distribution structure with wide reach, high quality coverage and ability to leverage scale. Ongoing Product innovation and renovation, to convert consumer insights High quality manpower resources. Attractive design and distinctive features of the machine. Far better preventive and break down maintenance. The distributors are required to undergo quality checks to maintain standards. Aggressive sales team and capable and committed manpower resources. Good market response in Lucknow area. Environment friendly packs. Excellent range of tea and coffee premixes providing flexibility of sweetness and diet option for concerned people. WEAKNESSES Limited success in changing consumption habits of people. Complex supply chain configuration, unwieldy number of SKU's with dispersed manufacturing locations. Price positioning in some categories allows for low price competition. Stock-out in case of much advertised flavors acts as a barrier in the retail channels. Much higher machine prices with lesser flexibility vis--vis competition which leads to higher rentals/EMIs. Low viability of revenue sharing model especially during off-season. .Absence of ginger flavor in the premix range of tea and this is the most preferred flavor in northern India especially during winters Vending machine having customization like token system are highly priced making it unviable for many corporate clients in a need to record/control consumption. After sales service not up to the Expected Standards. Hot beverages are less preferred during summers.

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OPPORTUNITIES Brand growth through increased consumption depth and frequency of usage Market growth through increased penetration in the unventured industrial areas like Patparganj etc. Upgrading consumers through innovation to new levels of quality and performance. Growing consumption in Out of Home categories and high potential market. Changing lifestyles. Development of alternate channels such as catering, STD/PCOs, cyber caf, pump, etc. Involving DSAs and courier companies for lead generation on commission basis as have access to administration department of the corporate houses. Leveraging technology to develop more products that provide Nutrition, Health and Wellness. To increase acceptance of instant Tea/Coffee amongst masses by sampling promotion etc., who still seem to be averse to it, keeping in mind the unpredictable preference in taste especially because of the loose control of the same in the competitors machines. Introduction of a consumer finance scheme by a third party e.g. GE country finance can widen the machine placement base without utilizing distributors capital. Hosting the Commonwealth Games in 2010 will influence the development of the retail infrastructure creating opportunities for vending operators to fill the gap in the market. THREATS Low priced competition now present in all categories. Spurious/counterfeit products. Seasonality. Substitutability. Heavy competition with new entrants offering me-too products or with very little variation with all kinds of attractive offers for getting edge in market.

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Suggestions and recommendations

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SUGGESTION AND RECOMMENDATION


Company needs to focus on availability of brochures and after sales service such as customer contact numbers for future service. Company should also take into notice about the margins given to dealers per piece which is highly less than the competitors except the high end models. Company should improve the availability of the product in the market. Company should develop campaigns in which more of the benefits derived from its product should be told in detail. This will provide huge success against competitor. Company should launch an aggressive marketing campaign in which offers such as bulk discounts and assured gifts should be given to dealers and customers. Company should try to push the lower end models in the rural areas which have huge potential untapped. Company should look after the small sachet market and its pricing decision. It should provide the delivery on the committed date. It should prepare a proper data base of the customers to meet the demands at the right time.

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Bibliography

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BIBLIOGRAPHY
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.

Some of my valuable sources are: www.tomatosauce.in www.hul.com www.unileverfoodsolutions.co.in www.wikipedia.com www.businessworldindia.com www.scribd.com

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Appendices

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APPENDICES
Questionnaire on Sauce

Name & Mob. No.Institution name-

1. Average Monthly consumption of Sauce2. Which brand of tomato sauce do you most commonly use3. Which food type you mostly use tomato sauce with?4. Do you get proper delivery at proper time?5. What requirement are necessary for a good sauce?6. Are you satisfied with the product you are using. If not, why? 7. How do you rate present supply of your stock- Satisfactory - Unsatisfactory 8. Rate Hindustan Unilever Products on the range of 1 to 10 scale.9. What is the best substitute available of your product? 10. Which brand of sauce consumer likes the most-? Cremica Kissan Del- monte heinz

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