TABLE OF CONTESTS 1) Acknowledgement 2) Preface 3) Certificate of originality 4) Executive Summary 5) Objective of research 6) Company Profile 7) Research problem and

its relevance 8) Research Methodology 9) Conclusion 10) Bibliography 11) Questionnaire

ACKNOWLEDGEMENT As anyone who has written a project work, or research work, it is quite impossible to acknowledge by name every individual who has played some part in this work.I f e e l i t d i f f i c u l t t o e x p r e s s i n w o r d s m y p r o f o u n d s e n s e o f g r a t i t u d e t o m o s t .respected persons who helped me to make this work possible.

I acknowledge my gratitude to respected faculty Ms Poonam M a l l i k & M s Vandana Sharma who have been kind enough to suggest improvement of this work .and make it broad, based I would like to thank my center head Major Gen. V. S. Yadav jaipur and TEAM HINDUSTAN UNILEVER LTD. for their support and encouragement. Finally of course great debts are owed to my all-friends whose wholehearted support has .given me the inspiration and dedication to complete this work.

PREFACE Fast Moving Consumer Goods popularly known FMCG is as the name suggests is the most demanded products in the market. It includes every thing from food items l i k e f l o u r , b i s c u i t s , i c e c r e a m s , e t c t o b o d y p r o d u c t s s o a ps, face creams to cigarettes to beverages, etc. consumers need these things in their everyday life so t h e y i n v e s t s a g o o d p o r t i o n o f t h e r e i n c o m e i n t h e s e t h i n g s . T h e r e a r e s o m a n y ,companies which are dealing in FMCG products like HUL, Dabur, Cavin Care, A M U L d e a l i n g in dairy products, etc. By the vary nature of the product companies are seeing this as a great source of income. As la r g e n u m b e r companies are looking this sector as a profitable venture, so for sustaining there p o s i t i o n a n d g a i n n e w m a r k e t t h e y h a v e t o b r i n g s o m e t h i n g u n i q u e i n t h e r e products or services to gain position in the market or to sustain there. In this project my focus is on tracking down the chang i n g r e q u i r e m e n t s preferences, needs of customers and their changing perspective on the different products offered

EXECUTIVE SUMMARY The main objective of the project is to get the full knowledge of the products of the HUL and what are they doing to get the customer loyalty, to maintain there market. This is also to find the preferences of customer and there market knowledge and product information, information about the presence of the rivals of HUL and all the other options they have in the market. What are the techniques they adopt to know about the preferences and changing needs of the customer? H U L a r e a l s o l o o k i n g t o t a p t h e m a r k e t i n r u r a l s e c t o r , s o t h e y a l s o t a k i n g i n t o consideration the needs and wants of the people there. They are also studying the consumption habits of the rural people. Like most of them are daily wage earnerso r s m a l l p e a s a n t s , s o t h e y a r e s t u d y i n g t h e b u y i n g patterns of them also.

OBJECTIVE OF THE RESEARCH The main objective of this project is to find, what are the steps Hindustan Unilever Ltd. is adapting to be market leader and to differentiate itself from its competitors. What is the steps company is utilizing to find current trend in the market? Most of the product of HUL comes in the category of convenience products. They are f r e q u e n t l y u s e d a n d b o u g h t b y t h e c u s t o m e r s . T h e r e i s l a r g e n o . o f p l a ye r s i n t h e market, who are supplying similar product to the customers. Now, customers have become smart, they have great knowledge of market, product a n d s u p p l i e r s . S o , t h e y a r e l o o k i n g f o r t h e p r o d u c t w h i c h i s p r o v i d i n g s o m e t h i n g extra.HUL has a wide range of product in FMCG sector, covering almost every needs and wants of the customers. It has products for child, young & adult, male & female, etc. so, it has to differentiate its products taking into account the needs and demands of all the sectors of the society. Not, only product but it has to look upon the services and feedback from customers also. It should do something to give after sales service and collect feedback from the customers. The basic objective of this project is as mentioned above to find ways so that HULr e m a i n m a r k e t l e a d e r b y c o n s i d e r i n g a l l t h e n e e d s & w a n t s a n d f u l f i l l i n g t h e i r demand.

COMPANY PROFILE Companys Background Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company, touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. They endow the company with a scale of combined volumes of about 4 million tones and sales of Rs.10,000 crores.HUL is also one of the country's largest exporters; it has been recognized as a Golden Super Star Trading House by the Government of India. The mission that inspires HUL's over 15,000 employees, including over 1,300managers, is to "add vitality to life." HUL meets every day needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. It is a mission HUL shares with its parent company, Unilever, which holds 51.55% of the equity. The rest of the shareholding is distributed among 380,000individual shareholders and financial institutions.HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's,Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall's are household names across the country and span many categories - soaps, detergents, personal products, tea, coffee, branded staples, icecream and culinary products. They are manufactured over 40 factories across India.The operations involve over 2,000 suppliers and associates. HUL's distribution network comprising about 4,000 redistribution stockists, covering 6.3 million retail outlets reaching the entire urban population, and about 250 million rural consumers.HUL has traditionally been a company, which incorporates latest technology in all its operations. The Hindustan Unilever Research Centre (HLRC) was set up in 1958, and now has facilities in Mumbai and Bangalore. HLRC and the Global Technology Centers in India have over 200 highly qualified scientists and technologists, many with post-doctoral experience acquired in the US and Europe.HUL believes that an organizations worth is also in the service it renders to the community. HUL is focusing on health & hygiene education, women empowerment, and water management. It is also involved in education and rehabilitation of special or underprivileged children, care for the destitute and HIV-positive, and rural development. HUL has also responded in case of national calamities / adversities and contributes through various welfare measures, most recent being the village built by HUL in earthquake affected Gujarat, and relief & rehabilitation after the Tsunami caused devastation in South India. In 2001, the company embarked on an ambitious programme, Shakti. Through Shakti, HUL is creating micro-enterprise opportunities for rural women, thereby improving their livelihood and the standard of living in rural communities. Shakti also includes health and hygiene education through the Shakti Vani Programme, and creating access to relevant information through the iShakti community portal. The program now covers 15 states in India and has over 31,000 women entrepreneurs in its fold,reaching out to

100,000 villages and directly reaching to 150 million rural consumers. By the end of 2010, Shakti aims to have 100,000 Shakti entrepreneurs covering500,000 villages, touching the lives of over 600 million people.

HUL is also running a rural health programme Lifebuoy Swasthya Chetana. The programme endeavors to induce adoption of hygienic practices among rural Indiansand aims to bring down the incidence of diarrhea. It has already touched 70 million people in approximately 15000 villages of 8 states. The vision is to make a billionIndians feel safe and secure.If Hindustan Unilever straddles the Indian corporate world, it is because of beingsingle-minded in identifying itself with Indian aspirations and needs in every walk of life.

MISSION Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition,hygiene and personal care with brands that help people feel good, look good and getmore out of life.O u r d e e p r o o t s i n l o c a l c u l t u r e s a n d m a r k e t s a r o u n d t h e w o r l d g i v e u s o u r s t r o n g relationship with consumers and are the foundation for our future growth. We will b r i n g o u r wealth of knowledge and international expertise to the service of localc o n s u m e r s a t r u l y m u l t i l o c a l m u l t i n a t i o n a l . Our longterm success requires a total commitment to exceptional standards o f performance and productivity, to working together effectively, and to a willingness toembrace new ideas and learn continuously.To succeed also requires, we believe, the highest standards of corporate behavior towards everyone we work with, the communities we touch, and the environment onwhich we have an impact.This is our road to sustainable, profitable growth, creating long -term value for our s h a r e h o l d e r s , o u r p e o p l e , a n d o u r b u s i n e s s p a r t n e r s

-:Organizational Structure:1. Chair Man Mr. Harish Manwani2. CEO & Managing Director Mr. Douglas Baillie 3. Finance & IT Director Mr. D. Sundaram 4. Executive Director Mr. Nitin Paranjpe 5. Directors I . Mr. Sanjiv Kakkar II. Mr. A. Narayan III. Mr. V. Narayanan IV. Mr. D. S. Parekh V. Mr. C. K. Prahalad VI. Mr. S. Ramadorai

RESEARCH PROBLEM AND ITS RELEVANCE RESEARCH PROBLEM HUL is facing the problem rather challenges from Large no. of players in the market Continuous changes in the taste and preferences of the customersSuch problems were identified as Research Problems and the objective statement wasformed on its basis. RELEVANCE OF THE RESEARCH The relevance of the research is to find out Acceptability among the customers Promotional analysis

SCOPE OF THE RESEARCH The scope of the research has been limited to the JAIPUR City.K e e p i n g i n m i n d the objective stated, questionnaire was designed for the p e o p l e . Subsequently a research was conducted. RESEARCH METHODOLOGY: There is large no. of FMCG companies in the market, to find the defining strategiesused, the methodology used is interview and survey method. Data Collection Method :For this research study, primary data as well as secondary data was collected. Primary Data has been collected through personal contact. For this purpose both questionnaire and one-on-one interview was considered with the consumers, shop owners and distributors & suppliers of the company. Secondary data has collected from magazines, newspaper, company literature andwebsites. Data analysis: Analyzing codes to each question were awarded. Thereafter every questionnaire waswritten. After which the data were analyzed.

MAJOR FINDINGS Major competitors 1 . D a b u r 2 . J h a n d u 3.Johnson &Johnson4 . C a v i n C a r e 5.Procter & Gamble6 . B r i t a n n i a 7 . I T C 8 . G i l l e t t e METHODOLOGY FOR RESEARCH PROBLEM Following steps where taken in to consideration, to identify the research problem1.Informal investigation Visit to the shop owners, talked to the distributors and to the consumersin the locality and surrounding areas. 2.External and Internal Analysis Understanding customer problem Understanding the market structure 3.Situational Analysis Tastes & preferences Needs & income Major CompetitorsITCDabur Procter & GambleCavin CareAmulJohnson & Johnson, etc

MAJOR FINDINGS

The Crisis of Declining Markets Through the nineties, the FMCG markets grew at almost 15% per annum in value.Suddenly, in 2000, FMCG market growth stalled and then declined for the next four years. It is important to understand why this happened.The rapid opening up of the economy resulted in many new avenues of expenditurefor the consumers growing income. A sharp drop in interest rates from 18% to 8%led to explosive demand for consumer durables like white goods, two -wheelers andautomobiles. After all, one could drive out of a car showroom in a Maruti 800 with adown payment of only Rs. 2000. The home ownership market grew exponentially ast h e a v e r a g e a g e o f a h o m e l o a n b o r r o w e r d r o p p e d f r o m 5 0 i n 1 9 9 9 to 30 in 2004.M o b i l e p h o n e o w n e r s h i p a n d u s a g e e x p l o d e d d u e t o i t s a m a z i n g l i f e s t y l e a n d convenience benefits as well as lower price s . E n t e r t a i n m e n t , L e i s u r e a n d T r a v e l sectors also boomed.The lure of new avenues of expenditure in products and services led to consumersrestricting their expanse on FMCG. It is not that they bathed less often or brushed their teeth less often or indeed washed their clothes less often. But they did downtradet o lower priced substitutes from higher quality brands. For example, a c o n s u m e r buying six tablets of Lux in a month went to buying three of Lux and three cheaper b r a n d s . O r a c o n s u m e r b u yi n g S u r f E x c e l f o r h e r c l o t h e s m i x e d i t w i t h a c h e a p e r powder. As a result of this shift in spending patterns, the FMCG market declined in value in the last four years creating a major challenge for growth. The new Hindustan Lever: Focused on FMCG In 2000, 75% of our sales came from FMCG businesses. The rest came from severaln o n - F M C G b u s i n e s s e s w h i c h w e r e n o t p r o f i t a b l e , a n d d i d n o t o f f e r p r o s p e c t s f o r long-term leadership. Besides, they were a drain on the core FMCG business, both interms of resource and focus.They decided to disengage from all non-FMCG or commodity businesses. In all, wehave divested and discontinued 15 businesses including Animal Feeds, Speciality Chemicals, Nickel Catalyst, Adhesives, Thermometers, Seeds, Mushrooms etc. withsales of Rs.1,750 crores as in 1999.Today they are a focused on FMCG company with our branded business accountingfor over 90% of sales, consisting of 35 brands across 20 categories. These will be their m a i n e n g i n e s o f g r o w t h , w i t h h i g h e r l e v e l s o f r e s o u r c e c o n c e n t r a t i o n , b e i t technology, people talent or media spend. Building blocks of a strong Foods business In Foods, there is enormous growth potential in leading the evolution of consumers to branded and processed foods. Over the last few years they have focused on putting in place the building blocks of a strong Foods business. Historically their Foods businesswas fragmented and lacked scale. It was often commoditized with low margins. Theyrecognized that changing food habits would require considerable investment, whichthe current business simply could not afford. Therefore they divested the non-valueadded parts like Vanaspati. They have consolidated

theuir portfolio and improved thegross margins by over 13% through product mix and cost reduction. They have also cleared the supply chain of all old stock and geared up for fresh availability on shelf.

Better Value The first step was to ensure that they offer world class quality and real differentiation backed by technology to give them the advantage over low priced competition. Theyhave invested over Rs.400 crores, or 5% of sales, in the last three years to upgrade the brands.I n s e v e r a l c a s e s t h e y r e d u c e d p r i c e s t o m a k e t h e b r a n d s m o r e a f f o r d a b l e . B e t t e r quality and more affordable prices have increased the value to the consumer.They have also launched several low unit size and price packs for single use to makethe brands more accessible to all income groups. For example, they are the first tointroduce a branded toothpaste in a tube at Rs.5 and a branded quality shampoo in a bottle at Rs.5. Bigger Role in Consumers Lives Perhaps the most significant change has been to move the brands b e yo n d merel ym a k i n g f u n c t i o n a l c l a i m s t o p l a y i n g a b i g g e r a n d d e e p e r r o l e i n t h e l i v e s o f consumers. They had to move from selling a s o a p o r a d e t e r g e n t t o s o m e t h i n g f a r more important and central to the consumers life. How often have we heard someonesay, A soap is a soap is a soap! Or indeed, All detergents clean clothes as well.In the case of Lifebuoy, it was only when they associated it with the promise of health and protection against disease that it claimed a larger space in the consumersmind. It moved from being a mere

soap to a health essential. Today Lifebuoy, their oldest brand, has grown at over 15% for the last three years. Similarly, in the laundry market, Surf Excel went well beyond the benefit of greatclean by saving two buckets of water with every wash. Imagine the importance of that benefit to consumers in cities, who often get running water for only a couple of hours a day. Surf Excel is one of their fastest growing brands today.Both Lifebuoy and Surf Excel have succeeded because they are relevant to two keyconcerns of the Indian housewife: family health and the scarcity of water.In addition to the growing consciousness of health, consumers today are looking for ways to look good and feel good so that they can get much more out of life. In short,consumers are seeking Vitality in their lives. Their portfolio of 35 power brands isuniquely positioned to offer nutrition, hygiene and personal care benefits and therebydeliver Vitality. Technology, the Key Differentiator Their brands and sound understanding of the local consumer are supported by a worldc l a s s R e s e a r c h a n d D e v e l o p m e n t c a p a b i l i t y. T h e y h a v e o v e r 2 0 0 o f t h e b r i g h t e s t scientists and technologists based in India.Their recent reorganization leverages the talent pool from across 16 global technologycentres, of which four are in India. In all, they have over 4,000 high quality mindsa c r o s s U n i l e v e r w o r k i n g r e l e n t l e s s l y t o p r o v i d e n e w b e n e f i t s t h a t m a k e a r e a l difference to the consumers. Winning with Customers Hindustan Lever has historically had a strong bond with its customers. They havestrengthened this and reinvented the way they manage their distribution channels and their customers. The sales structure has been transformed to leverage scale and buildexpertise in servicing Modern Trade and Rural Markets. They have also de-layeredtheir sales force to improve the response times and service levels.Their customers are serviced on continuous replenishment. This is possible because of IT connectivity across the extended supply chain of about 2,000 suppliers, 80 factoriesa n d 7,000 stockists. They have also combined backend processes into a c o m m o n Shared Service infrastructure, which supports the units across the country. All theseinitiatives together have enhanced operational efficiencies, improved the service to thecustomers and have brought us closer to the marketplace. Our Acorns: Investing in our Future In the pursuit of growth, they have also begun to nurture s ome acorns for the future.These are both new businesses and new ways of engaging with consumers.Their entry into Water Purifiers, through Pureit, shows great promise. Pureit delivers100% protection against all water-borne diseases. It provides water which is as safe as boiled water, without needing electricity or continuous tap water supply. At 17 paise per litre, it is extremely affordable for the common man. They have launched it inTamil Nadu and are fine-tuning all aspects of the business system before a phasednational launch.I n u r b a n I n d i a , H i n d u s t a n L e v e r N e t w o r k ( H L N )

i s t h e i r d i r e c t s e l l i n g i n i t i a t i v e selling a special range of products. It already reaches 1,400 towns with over 3 lakhc o n s u l t a n t s . B e s i d e s r e a c h , H L N e n a b l e s d i r e c t i n t e r a c t i o n w i t h c o n s u m e r s a n d customises solutions for them to give them a complete brand experience.

Our People & Organisation They have restructured the company, integrating eight Profit C e n t r e s i n t o t w o Divisions Home and Personal Care (HPC) and Foods. The result is a simpler andleaner organisation, less hierarchical with fewer levels and greater empowerment. This has eliminated complexity and speeded up decision making. Today the companyis far more youthful in attitude and spirit. There is greater openness and transparency. The Transformation: Investment in the Future To ensure that Hindustan Lever remains competitive in the long-term, they have mades i g n i f i c a n t i n v e s t m e n t s i n p r o d u c t q u a l i t y, p r i c i n g a n d m a r k e t i n g . A s m e n t i o n e d earlier, the investment in product quality alone has been in excess of Rs. 400 crores,or 5% of our sales.In addition there has been the cost of defending their market position. Recently an international competitor attacked their laundry business led by a price reduction of asm u c h a s 5 0 % . T h e y acted with speed and determination leveraging all their p a s t experience in India and internationally. They have been able to fully

protect their m a r k e t l e a d e r s h i p a n d s h a r e , a l b e i t s a c r i f i c i n g s h o r t t e r m p r o f i t . T h e y m a d e t h i s necessary trade-off as market share is the best means of sustaining future profit. Over time, their stronger market positions will surely lead to greater long-term profit.Despite these significant investments to strengthen the longterm competitiveness andthe costs of defending the strong market position, they still remain one of the most profitable companies in the country.

CONCLUSION I n r e c e n t ye a r s , t h e F M C G s e c t o r d e c l i n e d d u e t o d o w n t r a d i n g . A l s o b e c a u s e o f presence of large number of companies trying to seize this opportunity, this forcethe old HLL for the change and thus, their transformation has resulted in a newHLL, which has successfully faced this challenge and reversed this trend. It hasdone so by substantially strengthening their brands and building capabilities. Thish a s a l r e a d y b e g u n t o yi e l d b e n e f i t s a n d t h e y a r e r e t u r n i n g t o g r o w t h . V o l u m e growth is being followed by value growth, which in turn is bringing profit growth.India is one of the most exciting markets offering great potential. Over the next 10y e a r s , t h e p e r c a p i t a i n c o m e i n I n d i a i s l i k e l y t o d o u b l e . I n F M C G , t h e r e i s a n opportunity to catalyze penetration, increase usage, and upgrade consumers. As a r e s u l t , the FMCG market is expected to grow to over Rs.100,000 crores f r o m i t s current base of Rs.40,000 crores.T h e n e w H i n d u s t a n L e v e r s e e a n e x c i t i n g o p p o r t u n i t y f o r g r o w t h . T h e y h a v e 3 5 powerful brands covering all segments, with leading market positions in most. Today,t h e s e a r e s t r o n g e r a n d m o r e r e l e v a n t t o t h e c o n s u m e r t h a n e v e r . T h e p e o p l e a r e energized by the scale of the opportunity and determined to seize it. The scale of the business and operations gives them the resources needed. They are delivering goodservices and the changes they brought in the products are well taken by the customers, by this they are generating sustainable profitable growth.

BIBLIOGRAPHY BOOKS Kothari, C.R., 2005 Research Methodology, Wishwa Prakashan, India. Kotler, Philip. 2005, Marketing Management, Prentice hall India. Marketing Management, ICFAI University Press Magazines Business Today Investors India

 Business World Economic Times Business Standard WEBSITES www.hll.com www.fmcg.com www.economictimes.com www.marketwatch.com

QUESTIONNAIRE Fo Cs mrs rm ut e o 1. How much is your income? a. <Rs.10,000 b. Rs.10,000-Rs.25,000 c. Rs.25,000-Rs.50,000 d. >Rs.50,000 2. How much do you invest on consumption?a . < 3 0 % b . 3 0 6 0 % c . 6 0 - 8 0 % d . > 8 0 % 3. During purchase what in influence your purchase?a . P r i c e b . Q u a l i t y c . P a c k a g i n g d . E x p e r i m e n t e.Influence by others 4. Do you prefer any particular brand? ( If yes which brand )a . Y e s b . N o 5. Do you know about the presence of different products of differentcompanies in the same category?a . Y e s b . N o 6. Have you ever tried them?a . Y e s b . N o 7. Are you satisfied with the products you are using?a . Y e s b . N o