Study on Market Structure and And Promotional strategy of Hindustan Unilever

Submitted in partial fulfillment of the requirements for the award of the degree of

Bachelor of Business Administration (Computer Aided Management) Semester-III

To Guru Gobind Singh Indraprastha University, Delhi

Guide: Name of Guide: MR Dheeraj Jha Submitted by Name of Student:AKSHAY DESHWAL Roll No.:04990301910

Institute of Innovation in Technology & Management, New Delhi 110058 Batch (2010-2013)
AKSHAY DESHWAL (04990301910)

Certificate
I, Mr.akshay deshwal , Roll No. 04990301910 certify that the Minor Project Report (Paper Code=213) entitledStudy on Study on Market Structure and And Promotional strategy products is completed by me by collecting the material from the referenced sources. The matter embodied in this has not been submitted earlier for the award of any degree or diploma to the best of my knowledge and belief.

Signature of the Student: Date:

Certified that the Minor Project Report entitled Study on Market Structure and And Promotional strategy done by Mr.Akshay Deshwal, Roll No.04990301910, is completed under my guidance.

Signature of the Guide Name of the Guide: Designation: Date:

Countersigned Director/Project Coordinator

AKSHAY DESHWAL (04990301910)

ACKNOWLEDGEMENT

I am extremely grateful and remain indebted to our guide MR DHEERAJ JHA for being a source of inspiration and for his constant support in the Design, Implementation and Evaluation of the project. I am thankful to his for the constant constructive criticism and invaluable suggestions, which benefited me a lot while developing the project on study on Study on Market Structure And Promotional strategy . He has been a constant source of inspiration and motivation for hard work. He has been very co-operative throughout this project work. Through this column, it would be my utmost pleasure to express my warm thanks to his for the encouragement, co-operation and consent without which I mightnt be able to accomplish this project.

Name: Akshay deshwal Enroll. No: 04990301910

AKSHAY DESHWAL (04990301910)

TABLE OF CONTENT
INDEX S.NO. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. LIST OF CONTENTS INTRODUCTION OBJECTIVE OF STUDY REASEARCH METHODOLOGY PRODUCT LINE ANALYSIS OF STUDY FUTURE OPPURTUNITIES UNILEVER PRINCIPALS FUTURE PROJECTS IMPACT ON SALES 10 YRS STUDY CONCLUSION BIBLIOGRAPHY QUESTIONNAIRE PAGE NO.

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INTRODUCTION

Hindustan Unilever Limited (abbreviated to HUL), formerly Hindustan Lever Limited, is INDIAs largest consumer products company and was formed in 1933 as Lever Brothers India Limited. It is currently headquartered in Mumbai, India and its 41,000 employees are headed by 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. The company was renamed in late June 2007 as "Hindustan Unilever Limited". Some of its brands include Kwality Wall's ice cream, Lifebuoy, Lux, Breeze, Liril, Rexona, Hamam, Moti soaps, Pureit Water Purifier, Lipton tea, Brooke Bond tea, Bru Coffee, Pepsodent and Close Up toothpaste and brushes, and Surf, Rin and Wheel laundry detergents, Kissan squashes and jams, Annapurna salt and atta, Pond's talcs and creams, Vaseline lotions, Fair & Lovely creams, Lakme beauty products, Clinic Plus, Clinic All Clear, Sunsilk and Dove shampoos, Vim dish wash, Ala bleach and Domex disinfectant,Rexona,Modern Bread and Axe deospray.HUL has produced many business leaders for corporate India. It is referred to as a CEO Factory' in the Indian press for the same reasons. Its leadership building potential was recognized when it was ranked 4th in the Hewiit Global Leadership Survey 2007 with only GE, P&G and Nokia ranking ahead of HUL in the ability to produce leaders with such regularity Today, HUL is one of Indias largest exporters of branded Fast Moving Consumer Goods. It has been recognized by the Government of India as a Golden SuperStarTradingHouse.

Over time HUL has developed into a viable & competitive sourcing base for Unilever world wide in Home and Personal Care & Foods & Beverages category of products. HUL is also a global marketing arm for select licensed Unilever brands and also works on building categories with core country advantage such as brandedbasmatirice.

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HUL Exports offers high level of service with flexibility and responsiveness thorough out the supply chain. It has a dedicated organization structure to support this endeavor and this has helped in growth of these businesses in particular. Intrinsic cost competitiveness in the end to end Supply chain with appropriate technology and competitive capital investment operations while delivering best in class quality enables HUL to position itself as a key sourcing hub for Unilever and also become a preferred partner for Global customers in categories we operate. HULs key focus in the exports business is on two broad categories. It is a sourcing base for Unilever brands in Home & Personal Care (HPC) and Food and Beverages (F&B) for supplies to other Unilever companies. It also focuses on becoming a preferred supplier to both non-Unilever and Unilever clients in three categories in which India, as a country, has competitive advantage Branded Rice, Marine Products and Castor and its Derivatives. HUL enjoys international recognition within Unilever and outside for its quality, reliability and speed of customer service.

HUL's Exports geography comprises, at present, countries in Europe, Asia, Middle East, Africa, Australia, and North America etc.

HULs products touches two out of three Indian everyday Reach 80% Households Direct Coverage of 1mln outlets 2000 Suppliers and Associates 71 Manufacturing locations 15000 Employees 1100 managers Shelf availability 84% outlets in India

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Hindustan Unilever Limited is the Indian arm of the Anglo-Dutch company Unilever. Both Unilever and HUL have established themselves well in the Fast Moving Consumer Goods (FMCG) category. In India, the company offers many households brands Some

like, Dove,Lifebuoy, Lipton,Lux, Pepsodent, Ponds, Rexona, Sunsilk, Surf, Vaseline etc.

of its efforts were also rewarded when four of HUL brands found place in the Top 10 brands list for the year 2008 published in The Economic Times. Unilever was a result of the merger between the Dutch margarine company, Margarine Unie, and the British soap-maker, Lever Brothers, way back in 1930. For 70 years, Unilever was the undisputed market leader but now faces tough competition from Proctor & Gamble and ColgatePalmolive. HUL is also known for its strong distribution network in India. In order to further strengthen its distribution in the rural areas and to empower the local women, HUL launched a project Shakti in 2000 in a district in Andhra Pradesh. The idea behind this project was to create women entrepreneurs and provide them with micro-credit and training in enterprise management, which would enable them to create self-help groups and become direct-to-home distributors of HUL products. Today Shakti is present across 80,000 villages in 15 states and is helping many underprivileged women earn their livelihood. As the per capita income of India increasing along with the Indian population. So, the future for the FMCG Companies is bright. To analysis the past performance & the future demand of HUL, FMCG products have considered following points: They have a listed the different FMCG product lines of HUL.We have done competitors analysis in which the market share of top FMCG companies are analayised & the market share of HULS different competitors. Then it has done SWOT analysis to know the threat & opportunities of HUL in present market. Then performance analysis is made by taking 10 year financial data from 1998-2007. The profit & sales growth is analysed.
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categories product are analayised with comparison to its

Then the future opportunities for FMCG products are taken into consideration by analyzing the increased percapita income & increased disposable income to forecast the future demand of HUL.

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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 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.

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
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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 endeavours 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. If Hindustan Unilever straddles the Indian corporate world, it is because of being singleminded in identifying itself with Indian aspirations and needs in every walk of life.

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OBJECTIVES AND METHODOLOGY

OBJECTIVE Primary objective

To find the past sale growth and demand analysis

Secondary Objective

Market structure analysis

SWOT analysis

Competitor analysis

Performance evaluation

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METHODOLOGY
In this project we have followed descriptive method of study. Research instrument Here project analysis is made by collecting secondary data from different websites, journals, etc. Secondary datas are pre published and research datas collected from different websites, journals, newspapers, company research papers. These documents and datas are very useful for the theoretical, conceptual and organizational background analysis. Detailed analysis of datas is made by plotting different graphs and tables which can be easily understandable.

Then by observing these graphs we have made our conclusions and recommendations.

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PRODUCT LINE

A) HOME AND PERSONAL CARE:

1) Personal wash Lux Lifebuoy Liril Hamam Breeze Dove Pears Rexona

2) Laundry Surf Excel Rin Wheel

3) Skin Care Fair and lovely Ponds Aviance

4) Hair care Sunsilk naturals Clinic

5) Oral care Pepsodent Close up

6) Deodorants 7) Colour Cosmetics Axe Rexona Lakme

8) Ayurvedic Personal and health care:

Ayush

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B) FOODS

1) Tea Brooke Bond Lipton 2) Coffee Bru 3) Foods Kissan Knor Annapurna 4) Ice-cream Kwality walls 5) WATER PURIFIER Pureit

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SWOT ANALYSIS
STRENGTH Variety of products Distribution Network Brand image Quality Management Innovation and R&D strength THREATS From High Class Competitor Proctor & Gamble Pantene Dabur Babool Dabourlal Dent Manjan Reckitt Benckiser Dettol Palmolive Colgate, Nirma OPPORTUNITIES Huge Market Increasing per capital income
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 Increasing consumption pattern Potential for making more impact of brand image. Coming in technology e.g. in water purifiers WEAKNESS Not able to compete with local competitor in the rural market Not focus on upper class population Pricing policy is not good

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COMPETITORS ANALYSIS
According to the market survey done by BUSINESS TODAY the top 10 companies of FMCG sector are given below. 1. 2. 3. 4. 5. 6. 7. 8. 9. Hindustan Unilever Ltd. ITC (Indian Tobacco Company) Nestl India GCMMF (AMUL) Dabur India Asian Paints (India) Cadbury India Britannia Industries Procter & Gamble Hygiene and Health Care

10. Marico Industries

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THE COMPARATIVE DATA OF % MARKET SHARE OF HUL AND ITS COMPETITOR IN QUARTER ENDED JUN08
80 70 60 50 40 30 20 10 0 HUL(MARKET SHARE %) COMPETITOR (MARKET SHARE %)

(Above graph showing %age Market share of HUL and its competitor in different categories of FMCG products) As mentioned in the above graph, HUL is enjoying the leader position in the market and is having highest market shares which are followed by the market challengers like Dabur India Ltd, Nestle India Ltd, and ITC LTD, ETC..In different categories of FMCG products like shampoo, skincare , deo, jams, coffee, etc
60 50 40 30 30 20 10 0 TOOTH PASTE HUL(Market share%) COMPETITOR(Market share%) KETCHUP 24.5 27.6 47.9

In some category these market challengers are giving high level competition in different product lines such as ketchup and toothpaste (As shown in the graph below).

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(Above graph showing the two category of products in which HUL percentage market share is less than its competitor in Quarter ended JUN08)

So we can see that in overall FMCG business HUL is distantly ahead of rest of the companies as far as market share of different products are concerned.

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BUSINESS SEGMENT

Soaps and Detergents (46% Revenue, 44% EBIT): This segment includes Laundry and Personal Wash products like soaps, detergent bars, detergent powders, detergent liquids, scourers,etc.Sales of the segment grew sales by 13.9% and 20.3% in CY07 and H1CY08 respectively. Fabric Wash has shown strong growth in this year with the market share moving up from 34.6% in Q4CY06 to 38.3% in Q2CY08 Profitability margins which declined from 25.7% in CY'02 to 13.7 % in CY'05 due to pricing actions from P&G in the Laundry segment have slightly recovered to 15.6% (CY'07). Personal Care Products (26% Revenue, 46.2% EBIT) : This business which comprises mainly skin care, hair care and oral care is the most profitable segment for HUL.It is highest contributor to HULs EBIT at 47%. Low penetration and consumption of personal products has sustained these categories' high growth rates. This segment has shown a revenue growth of 20.9% in H1CY08 and the new launches in the Ponds and Dove range contributed to the profitability of the segment.

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Beverages (11% Revenue,10.3% EBIT) : HUL's beverages business is operated through the Brooke Bond and Lipton brands for packet tea and Bru brand for coffee. With the aggressive relaunch of Brooke Bond, Taj Mahal and Taaza, the company has been able to arrest the decline in its market share.Overall margins have declined to 15% in CY'07 from 20% in CY'04 due to hike in Coffee bean prices. Foods (4% Revenue, 0.8% EBIT) :In spite of having one of the best distribution networks (coverage of 6.3 mn outlets) in the country, the food business has never constituted a big part of revenues.Thats why this is the current focus area for the company. Presence in the foods category is mainly through soup mix, Chinese meal maker, jams, ketchups and salts. HUL is clearly keeping a low profile in the staples category, which is low margin business.Foods margin dipped partly due to launch related costs for Amaze brain foods (launched in two southern states during the JanuaryMarch 2008 quarter). Ice Cream(1% Revenue, 0.6%EBIT) : This segment includes include Ice Creams and Frozen Desserts.Kwality Wall's, launched in 1995, is the company's master brand for ice cream. It has launched Moo brand that boosts childrens calcium levels in the June quarter of CY07. Exports : Exports include sales of Marine Products, Castor, etc. as well as sales of soaps and detergents, personal products, beverages and foods etc. by the Exports Division. Exports are the lowest-margin business for the company. It has already exited the low-margin shrimps and castor business. Others: This section includes Chemicals,Water purifiers, Agri seeds, Property Development, Water business, Ayush services etc. It has seen a growth of 41.5% as Pure It (a water purifier product) increased its reach to more than 600 towns.

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PERFORMANCE ANALYSIS

Hindustan Unilever Ltd is one of the leading FMCG company in India which having the following past financial records we have taken for the analysis as follows:

Table showing past 10 years financial data

Sales growth of last 10 years

1500000 1400000 1300000 1200000 1100000 1000000 900000 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

sales(Rs. Lakhs)

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PROFIT OF LAST 10 YEAR

200000 180000 160000 140000 120000 100000 80000 60000 40000 20000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 PROFIT(Rs.Lakhs)

DATA ANALYSIS: We have the sales and profit figures of HUL from the year 1998 to 2007 in the 10year past data from Yr1998-2007, after plotting two graph one of sales & other of profit as shown in here we can see that both profit and sales of the company rose from the year 1998 till 2001, but in the year 2002 we see that the sales fell but there was actually rise in the profit of the company . In the year 2004 we see that there was a steep fall in the profit of the company and from the year 2005 onwards there was a slow but steady rise in the profit of the company, but a rapid rise in the sales of the company in the given years.

Reason for the steep fall in the profit of the company in the year 2004: The FMCG market in Urban India was attaining the saturation level and so companies had to expand its market in rural India. This resulted in the downfall in the profit of HUL. There was very aggressive advertising campaign by ITC in that year to set itself in the market this affected HUL who was enjoying the position of market leader and resulted in the fall in the profit of the company.
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In the following graph we can see the percentage growth in FMCG sales of HUL from March quarter 07 to March quarter 08.

FMCG Sales volume growth in last 5 quarter in 07-08

25

20

15 FMCG Sales volume growth in last 5 quarter in 07-08

10

0 MQ'07 JQ'07 SQ'07 DQ'07 MQ'08

(Graph showing the FMCG trend through last quarters)

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Advertisement Strategy of Unilever from last 10 years

Axe Nightclub
In the mating game, dandruff is a no-no, so Axe has to deliver on its brand message.

2010 | USA

Dove - Men+Care
Doves first range for men helps them be as comfortable in their own skin as they are in their lives. June 2010 | United States of America

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Sunlight (Vim Bar) Family Value

A glimpse into Indian family life, with the familys monthly shopping spread out on the table. 2010 | India

Degree and Rexona Tinkerbell

A swift sultry encounter between a glamorous hotel guest and a bell boy but all in the interests of a good deodorant.

2009 | US and UK

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Dove - Go Fresh
A new Dove Go Fresh Body Wash Energise advert takes a snippet of a young woman's daily showering routine. December 2008 | United States of America

Lynx - Dark temptation

Winner of 2008 Film Gold Cannes, Best Film Gold San Sebastian Festival and Best Film NYC Festival.

Degree - Engineered
Degree's futuristic advert focuses on the superior antiperspirant qualities of their deodorant by comparing it to a competitor product.

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FUTURE OPPORTUNITIES

India is a fast developing country with a huge population whose per capita income is growing rapidly and there is huge opportunity for FMCG companies.

The opportunities are as follows: Increasing per capita income is driving FMCG growth in India Indias consuming class is growing rapidly Changing consumption pattern: Per capita income of Indian customer is increasing and FMCG products are relatively elastic in nature hence the expected sale should increase.

By the following three graphs(data collected from a research made by govt. of INDIA) we can expect increase future demand of FMCG products, the graphs showing the increasing percapita income, percapita disposable income and population of India respectively are as follows:

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Percapita income(Rs)
1200 1000 800 600 400 200 0 2000 2001 2002 2003 2004 2005 2006 2007 2008

Percapita income(Rs)

(Above graph showing percapita income of INDIANS through out Yr2000-2008) As shown in the above graph the percapita income of an INDIAN increased throughout years, and if this trend will continue in future the people can purchase more FMCG products.
700 600 500 424 400 300 200 100 0 2002 2003 2004 2005 2006 2007 461 494 505 599 551

Percapita disposible income

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% Of past population rise and future expetation

45 40 35 30 25 20 15 10 5 0 17 20 18.5 25 23.5 30 27.5 35 41.5

% Of past population rise and future expetation

2000

1950

1960

1970

1980

1990

2010

2020

(Above graph shows the past population and expected future population rise, data are collected from the research made by govt. of INDIA)Here by the above graphs we can see that there is huge scope for FMCG products and since HUL is the market leader in India hence it can gain the most out of it.

CATEGORY WISE SALE GROWTH OF FMCG SECTOR OF HUL IN INDIA:

CATEGORY %AGE

Soaps & Detergents Personal Products Ice Cream Processed Foods Beverages Others

2030

19.3 22.4 15.7 13.7 13.6 19.4

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25 22.4 20 19.3 15.7 15 13.7 13.6 19.4

10

0 Soaps & personal Ice cream Processed Beverages detergents products foods Others

% GROWTH OF DIFFERENT FMCG PRODUCTS OF HUL

(Above graph shows the data of MAR08 Quarter %growth of different products of HUL)

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UNILEVER PRINCIPLES MISSION AND VISION

Unilever products touch the lives of over 2 billion people every day whether that's through feeling great because they've got shiny hair and a brilliant smile, keeping their homes fresh and clean, or by enjoying a great cup of tea, satisfying meal or healthy snack.

A clear direction The four pillars of our vision set out the long term direction for the company where we want to go and how we are going to get there:

We work to create a better future every day We help people feel good, look good and get more out of life with brands and services that are good for them and good for others.

We will inspire people to take small everyday actions that can add up to a big difference for the world.

We will develop new ways of doing business that will allow us to double the size of our company while reducing our environmental impact. We've always believed in the power of our brands to improve the quality of peoples lives and in doing the right thing. As our business grows, so do our responsibilities. We recognise that global challenges such as climate change concern us all. Considering the wider impact of our actions is embedded in our values and is a fundamental part of who we are.

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FUTURE PROJECTS OF HUL

As competition is increasing day by day, its difficult to maintain the leader position & to further strengthen the distribution network HUL made a project called project SHAKTI which will serve the following purpose: A) To Reach: Small, scattered settlements and poor infrastructure make distribution difficult. Over 500,000 villages not reached directly by HUL.

B) To Communicate: Low literacy hampers effectiveness of print media. Poor media-reach: 500 million Indians lack TV & radio.

C) To Influence: Low category penetration, consumption.

C) Awareness: Per capita consumption in Unilever categories is 33% of urban level.

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From Source to Market (How HUL creates its Products)

HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall's are household names across the country and span many categories - soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary products. They are manufactured over 37 factories across India. The operations involve over 2,000 suppliers and associates. HUL's distribution network, comprising about 2,500 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 (HURC) was set up in 1958, and now has facilities in Mumbai and Bangalore. HURC and the Global Technology Centres in India have over 200 highly qualified scientists and technologists, many with post-doctoral experience acquired in the US and Europe. HUL believes that an organisation's worth is also in the service it renders to the community. HUL is focusing on health & hygiene education, women empowerment, and water management. It is also involved in education and rehabilitation of special or underprivileged children, care for the destitute and HIV-positive, and rural development. HUL has also responded in case of national calamities / adversities and contributes through various welfare measures, most recent being the village built by HUL in earthquake affected Gujarat, and relief & rehabilitation after the Tsunami caused devastation in South India. In 2001, the company embarked on an ambitious programme, Shakti. Through Shakti, HUL is creating microenterprise opportunities for rural women, thereby improving their livelihood and the standard of living in rural communities. Shakti also includes health and hygiene education through the Shakti Vani Programme, and creating access to relevant information through the iShakti community portal. The program now covers 15 states in India and has over 45,000 women entrepreneurs in its fold, reaching out to 135,000 villages and directly reaching to 150 million rural consumers. HUL is also running a rural health programme Lifebuoy Swasthya Chetana. The programme endeavours to induce adoption of hygienic practices among rural Indians and aims to bring down the incidence of diarrhoea. It has already touched 120 million people in approximately 50, 676 villages across India. The vision is to make a billion Indians feel safe and secure.

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IMPACT ON SALES 10 YRS STUDY

Unilever is one of the worlds leading suppliers of fast-moving consumer goods. We aim to meet everyday consumer needs for nutrition, hygiene and personal care with products that help people to feel good, look good and get more out of life. Unilever is a global business which by the end of the year was generating more than half of its turnover in developing and emerging markets in Asia, Africa, Central & Eastern Europe and Latin America. Unilevers portfolio includes such well-known brands as Knorr, Lipton, Hellmanns, Magnum, Omo, Dove, Lux and Axe/Lynx. Our long-term ambition is to be in the top third of a group of 21 fast moving consumer goods companies in terms of total shareholder return on a three-year basis. A list of the companies included in our peer group in 20

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CONCLUSION
Hindustan Unilever ltd. Is a leading FMCG company in India and from last three consecutive years has shown accelerated growth in FMCG portfolio. Customers in India are also spending more in FMCG as their standard of living is growing. HUL has placed itself successfully in the position of market leader in FMCG products. Though there was some downfall in sales and profit of the company in the beginning of this decade but after that HUL has shown considerable rise in both sales and profit. The future of the company is also looking bright as FMCG market in India is still expanding and so we can safely conclude that HUL will be able to secure its number one position in FMCG product.

HUL has also started project SHAKTI that has provided it direct reach to rural market. This may be considered a revolutionary step since the urban market is reaching its saturation level and there is a huge scope exploring rural market. This will also be helpful not only increasing its market share but also fight competition.

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BIBLIOGRAPHY
In order to make this project we have taken the help of the following websites & books: www.hul.co.in

Besides it various books are also consulted to prepare project report.

AUTHORS NAME C.K.Kothari

BOOKS Research Methodology

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