A PROJECT ON THE MARKETING STRy OF HINDUSTAN UNILEVER LTD.

TABLE OF CONTENTS

Executive Summary Introduction Company Profile Current Mar et Context Export! Portfolio! Corporate Mana"ement #e!earc$ % Innovation Centre Safety % &ealt$ Policy Mar et Strate"ie! &LL 'i!tri(ution Net)or Pioneerin" C$annel! &indu!tan *nilever Ltd+ Competitor! #e!earc$ Met$odolo"y Future Scope Findin"!, 'ata Analy!i! % Conclu!ion #ecommendation! Su""e!tion! Limitation! Bi(lio"rap$y -Annexure. /ue!tionnaire

E0EC*TI1E S*MMA#2

Hindustan Unilever Limited (HUL) is Indias largest Fast Moving Consumer

Goods Company, touching the lives o t!o out o three Indians !ith over "# distinct categories in Home $ %ersonal Care %roducts and Foods $ &everages' (hey endo! the company !ith a scale o com)ined volumes o a)out * million units and sales o +s',#, ### crores'

HUL is also one o the countrys largest e-porters. it has )een recogni/ed as a
Golden 0uper 0tar (rading House )y the Government o India'

Hence, research

aims is that to study the e-isting mar1eting practices, emerging mar1eting plans and understanding companies )usiness strategy !ith its pro ile' (he main recommendations have )een made on the addressing o the advertising message to the customers' 2n attempt has )een made to ormulate the communication in a !ay to )uild it on a plat orm o the )asic need or )uying HUL products' In another recommendation the suggestions to!ards )etter dealer interest in HUL products has )een given a chance'

(he research is )ased primarily on primary data. ho!ever

e!

re erences to industry igures rom secondary data have )een made' 3ata has )een collected through in depth intervie!s and administered 4uestionnaires'

T$e !tudy $a! "iven t$e re!earc$er! an in!ide of t$e Con!umer dura(le Indu!try and an opportunity to u!e t$e t$eoretical no)led"e in live pro3ect+

INT#O'*CTION
5ver ,## years6 lin1 !ith India' In the summer o ,777, visitors to the 8ol1ata har)or $ noticed crates ull o 0unlight soap )ars, em)ossed !ith the !ords 9Made in :ngland )y Lever &rothers9' ;ith it, )egan an era o mar1eting )randed' Fa!t Movin" Con!umer 4ood! -FMC4.+

0oon a ter ollo!ed Li e)uoy in ,7<= and other amous )rands li1e %ears, Lu- and >im' >anaspati !as launched in ,<,7 and the amous 3alda )rand came to the mar1et in ,<?@'

In ,<?,, Unilever set up its

irst Indian su)sidiary, Hindustan

>anaspati Manu acturing Company, ollo!ed )y Lever &rothers India Limited (,<??) and United (raders Limited (,<?=)' (hese three companies merged to orm HUL in Aovem)er ,<=B. HUL o ered ,#C o its e4uity to the Indian pu)lic, )eing the irst among the oreign su)sidiaries to do so' Unilever no! holds =,'==C e4uity in the company' (he rest o the shareholding is distri)uted among a)out ?7#,### individual shareholders and inancial institutions'

(he erst!hile &roo1e &ond6s presence in India dates )ac1 to ,<##' &y ,<#?, the company had launched +ed La)el tea in the country' In ,<,", &roo1e &ond $ Co' India Limited !as ormed' &roo1e &ond

Doined the Unilever old in ,<7* through an international ac4uisition' (he erst!hile Lipton6s lin1s !ith India !ere orged in ,7<7' Unilever ac4uired Lipton in ,<@", and in ,<@@ Lipton (ea (India) Limited !as incorporated'

%ond6s (India) Limited had )een present in India since ,<*@' It Doined the Unilever old through an international ac4uisition o Chese)rough %ond6s U02 in ,<7B'

0ince the very early years, HUL has vigorously responded to the stimulus o economic gro!th' (he gro!th process has )een

accompanied )y Dudicious diversi ication, al!ays in line !ith Indian opinions and aspirations'

(he li)erali/ation o

the Indian economy, started in ,<<,, clearly

mar1ed an in le-ion in HUL6s and the Group6s gro!th curve' +emoval o the regulatory rame!or1 allo!ed the company to e-plore every single product and opportunity segment, !ithout any constraints on production capacity'

0imultaneously, deregulation permitted alliances, ac4uisitions and mergers' In one o the most visi)le and tal1ed a)out events o India6s

corporate history, the erst!hile (ata 5il Mills Company ((5MC5) merged !ith HUL, e ective rom 2pril ,, ,<<?' In ,<<=, HUL and yet another (ata company, La1me Limited, ormed a =#E=# Doint venture, La1me Lever Limited, to mar1et La1me6s mar1etFleading cosmetics and other appropriate products o )oth the companies' 0u)se4uently in ,<<7, La1me Limited sold its )rands to HUL and divested its =#C sta1e in the Doint venture to the company'

HUL ormed a =#E=# Doint venture !ith the U0F)ased 8im)erly Clar1 Corporation in ,<<*, 8im)erlyFClar1 Lever Ltd, !hich mar1ets Huggies 3iapers and 8ote- 0anitary %ads' HUL has also set up a su)sidiary in Aepal, Aepal Lever Limited (ALL), and its actory represents the

largest manu acturing investment in the Himalayan 1ingdom' (he ALL actory manu actures HUL6s products li1e 0oaps, 3etergents and %ersonal %roducts )oth or the domestic mar1et and e-ports to India'

(he ,<<#s also !itnessed a string o crucial mergers, ac4uisitions and alliances on the Foods and &everages ront' In ,<<", the erst!hile &roo1e &ond ac4uired 8othari General Foods, !ith signi icant interests in Instant Co ee' In ,<<?, it ac4uired the 8issan )usiness rom the U& Group and the 3ollops Icecream )usiness rom Cad)ury India'

2s a measure o )ac1!ard integration, (ea :states and 3oom 3ooma, t!o plantation companies o Unilever, !ere merged !ith &roo1e &ond' (hen in Guly ,<<?, &roo1e &ond India and Lipton India merged to orm &roo1e &ond Lipton India Limited (&&LIL), ena)ling greater ocus and ensuring synergy in the traditional &everages )usiness' ,<<*

!itnessed &&LIL launching the ;all6s range o Fro/en 3esserts' &y the end o the year, the company entered into a strategic alliance !ith the 8!ality Icecream Group amilies and in ,<<= the Mil1 ood ,##C

Icecream mar1eting and distri)ution rights too !ere ac4uired'

Finally, &&LIL merged !ith HUL, !ith e ect rom Ganuary ,, ,<<B' (he internal restructuring culminated in the merger o %ond6s (India)

Limited (%IL) !ith HUL in ,<<7' (he t!o companies had signi icant overlaps in %ersonal %roducts, 0pecialty Chemicals and :-ports )usinesses, )esides a common distri)ution system since ,<<? or

%ersonal %roducts' (he t!o also had a common management pool and a technology )ase' (he amalgamation !as done to ensure or the Group, )ene its rom scale economies )oth in domestic and e-port mar1ets and ena)le it to und investments re4uired or aggressively )uilding ne! categories'

In Ganuary "###, in a historic step, the government decided to a!ard

@* per cent e4uity in Modern Foods to HUL, there)y )eginning the divestment o government e4uity in pu)lic sector underta1ings (%0U) to private sector partners' HUL6s entry into &read is a strategic e-tension o the company6s !heat )usiness' In "##", HUL ac4uired the government6s remaining sta1e in Modern Foods'

In "##?, HUL ac4uired the Coo1ed 0hrimp and %asteurised Cra)meat )usiness o the 2malgam Group o Companies, a leader in value added Marine %roducts e-ports'

COMPAN2 P#OFILE
(he mission that inspires HUL6s ?B,### employees, including over ,,?=# managers, is to 9add vitality to li e'9 HUL meets everyday needs or nutrition, hygiene, and personal care !ith )rands that help people eel good, loo1 good and get more out o li e' It is a mission HUL shares !ith its parent company, Unilever, !hich holds =,'==C o the e4uity' (he rest o the shareholding is distri)uted among ?7#,### individual shareholders and inancial institutions'

HUL6s )rands F li1e Li e)uoy, Lu-, 0ur :-cel, +in, ;heel, Fair $ Lovely, %ond6s, 0unsil1, Clinic, %epsodent, CloseFup, La1me, &roo1e &ond, 8issan, 8norrF2nnapurna, 8!ality ;all6s H are household names across the country and span many categories F soaps, detergents, personal products, tea, co ee, )randed staples, ice cream and culinary products' (hey are manu actured in close to 7# actories' (he operations involve over ",### suppliers and associates' HUL6s distri)ution net!or1, comprising a)out @,### redistri)ution stoc1ists, directly covers the entire ur)an population, and a)out "=# million rural consumers'

HUL has traditionally )een a company, !hich incorporates latest technology in all its operations' (he Hindustan Lever +esearch Centre (HL+C) !as set up in ,<=7, and no! has acilities in Mum)ai and &angalore' HL+C and the Glo)al (echnology Centres in India have over "## highly 4uali ied scientists and technologists, many !ith postF doctoral e-perience ac4uired in the U0 and :urope'

HUL )elieves that an organisation6s !orth is also in the service it renders to the community' HUL is ocusing on health $ hygiene education, !omen empo!erment,

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and !ater management' It is also involved in education and reha)ilitation o special or underprivileged children, care or the destitute and HI>Fpositive, and rural

development' HUL has also responded in case o national calamities I adversities and contri)utes through various !el are measures, most recent )eing the village )uilt )y HUL in earth4ua1e a ected GuDarat, and relie $ reha)ilitation a ter the (sunami caused devastation in 0outh India'

5ver the last three years the company has em)ar1ed on an am)itious programme, 0ha1ti' (hrough 0ha1ti, HUL is creating microFenterprise opportunities !omen, there)y improving their livelihood and the standard o or rural

living in rural

communities' 0ha1ti also includes health and hygiene education through the 0ha1ti >ani %rogramme, and creating access to relevant in ormation through the i0ha1ti community portal' (he programme no! covers a)out =#,### villages in ," states' HUL6s vision is to ta1e this programme to ,##,### villages impacting the lives o over a ,## million rural Indians'

HUL is also running a rural health programme H Li e)uoy 0!asthya Chetana' (he programme endeavtheirs to induce adoption o hygienic practices among rural

Indians and aims to )ring do!n the incidence o diarrhoea' It has already touched @# million people in appro-imately ,=### villages o 7 states' (he vision is to ma1e a )illion Indians eel sa e and secure' I Hindustan Lever straddles the Indian corporate !orld, it is )ecause o )eing singleFminded in identi ying itsel !ith Indian aspirations and needs in every !al1 o li e'

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&IN'*STAN *NILE1E# LIMITE' COMPAN2

IN'IA5S LA#4EST FMC4

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FINANCIAL O1E#1IE6

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Hindustan Leve Li!ited S"a e"#$din% Patte n Flls 13.7 Domestic Fls 14.8

Unilever 51.6

Individual 19.9 HUL Equity Capital - 50 Mn $ Market Capitalisation - 7,300 Mn $

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PRESENT MARKETING STRATEGY:

Mission: Hindustan Unilever Limited mission is to add itality to li!e" #e meet everyday

needs !or nutrition, $y%iene, and personal &are 'it$ (rands t$at $elp people !eel %ood, look %ood and %et more out o! li!e" Policy: HUL has earned a reputation or conducting its )usiness !ith integrity and !ith
respect or the interests o those their activities can a ect' (his reputation is an asset, Dust as real as their people and )rands'

)$eir !irst priority is to (e a su&&ess!ul (usiness and t$at means investin% !or %ro't$ and (alan&in% s$ort-term and lon%-term interests" *t also means &arin% a(out t$eir &onsumers, employees and s$are$olders, t$eir (usiness partners and
the !orld in !hich !e live'

+rom HUL ,pokesperson -(o succeed re4uires the highest standards o )ehavior
rom all o us' (he general principles contained in this Code set out those standards' More detailed guidance tailored to the needs o di erent countries and companies !ill )uild on these principles as appropriate, )ut !ill not include any standards less rigorous than those contained in this Code'

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#e 'ant t$is Code to (e more t$an a &olle&tion o! $i%$-soundin% statements" *t must $ave pra&tical value in their dayFtoFday )usiness and each one o us must
ollo! these principles in the spirit as !ell as the letterJ' ref: business world magazine.

Obeying the Law HUL companies and employees are re4uired to comply !ith the la!s and
regulations o the countries in !hich they operate'

Em loyees

HUL is committed to diversity in a !or1ing environment !here there is

mutual trust and respect and !here everyone eels responsi)le or the per ormance and reputation o the company' HUL !ill recruit, employ and promote employees on the sole )asis o the 4uali ications and a)ilities needed or the !or1 to )e per ormed'

HUL are committed to sa e and healthy !or1ing conditions or all

employees' ;e !ill not use any la)our' orm o orced, compulsory or child

HUL are committed to !or1ing !ith employees to develop and enhance

each individual6s s1ills and capa)ilities'

HUL respect the dignity o the individual and the right o employees to
reedom o association'

HUL !ill maintain good communications !ith employees through

company )ased in ormation and consultation procedures'

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!ons"me#s
HUL is committed to providing )randed products and services !hich consistently o er value in terms o price and 4uality, and !hich are sa e or their intended use' %roducts and services !ill )e accurately and properly la)elled, advertised and communicated'

Sha#ehol$e#s
HUL !ill conduct its operations in accordance !ith internationally accepted principles o good corporate governance' (hey !ill provide timely, regular and relia)le

in ormation on their activities, structure, inancial situation and per ormance to all shareholders'

%"siness Pa#tne#s HUL is committed to esta)lishing mutually )ene icial relations !ith their suppliers,
customers and )usiness partners'

*n t$eir (usiness dealings they e-pect their partners to adhere to )usiness

principles consistent !ith their o!n'

!omm"nity In&ol&ement HUL strives to )e a trusted corporate citi/en and, as an integral part o society, to
ul ill their responsi)ilities to the societies and communities in !hich they operate'

P"blic Acti&ities HUL companies are encouraged to promote and de end their legitimate )usiness
interests' HUL !ill coFoperate !ith governments and other organisations, )oth directly and through )odies such as trade associations, in the development o

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proposed legislation and other regulations !hich may a ect legitimate )usiness interests'

HUL neither supports political parties nor contri)utes to the unds o groups !hose
activities are calculated to promote party interests'

The Environment HUL is committed to ma1ing continuous improvements in the management o their
environmental impact and to the longerFterm goal o )usiness' developing a sustaina)le

HUL !ill !or1 in partnership !ith others to promote environmental care, increase
understanding o environmental issues and disseminate good practice'

Inno&ation
In their scienti ic innovation to meet consumer needs they !ill respect the concerns o their consumers and o society' (hey !ill !or1 on the )asis o sound science, applying rigorous standards o product sa ety'

!om etition
HUL )elieves in vigorous yet air competition and supports the development o

appropriate competition la!s' (heir companies and employees !ill conduct their operations in accordance !ith the principles o regulations' air competition and all applica)le

%"siness Integ#ity HUL does not give or receive, !hether directly or indirectly, )ri)es or other improper
advantages or )usiness or inancial gain' Ao employee may o er, give or receive

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any gi t or payment !hich is, or may )e construed as )eing, a )ri)e' 2ny demand or, or o er o , a )ri)e must )e reDected immediately and reported to management'

HUL accounting records and supporting documents must accurately descri)e and
re lect the nature o the underlying transactions' Ao undisclosed or unrecorded account, und or asset !ill )e esta)lished or maintained'

!on'licts o' Inte#ests .ll HUL employees are e-pected to avoid personal activities and inancial interests
!hich could con lict !ith their responsi)ilities to the company'

HUL employees must not see1 gain or themselves or others through misuse o their
positions'

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Compliance 7 Monitorin" 7 #eportin"

Complian&e 'it$ t$ese prin&iples is an essential element in t$eir (usiness su&&ess" )$e Unilever /oard is responsi)le or ensuring these principles are
communicated to, and understood and o)served )y, all employees'

0ay-to-day responsi(ility is dele%ated to t$e senior mana%ement o! t$e re%ions and operatin% &ompanies" )$ey are responsi(le !or implementin% t$ ese principles,
i necessary through more detailed guidance tailored to local needs'

.ssuran&e o! &omplian&e is %iven and monitored ea&$ year" Complian&e 'it$ t$e Code is su(1e&t to revie' (y t$e /oard supported (y t$e .udit Committee o! t$e /oard and t$e Corporate +is1 Committee' .ny (rea&$es o! t$e Code must (e reported in a&&ordan&e 'it$ t$e pro&edures spe&i!ied (y t$e 2oint ,e&retaries" )$e /oard o! Unilever 'ill not &riti&ise mana%ement !or any loss o! (usiness resultin% !rom ad$eren&e to t$ese prin&iples and other mandatory policies and instructions' )$e /oard o! Unilever e3pe&ts employees to (rin% to t$eir attention, or to t$at o! senior mana%ement, any (rea&$ or suspe&ted (rea&$ o! t$ese prin&iples" 4rovision $as (een made !or employees to (e a(le to report in con idence and no
employee !ill su er as a conse4uence o doing so'

*n t$is Code t$e e3pressions 5Unilever5 and 5Unilever &ompanies5 are used !or &onvenien&e and mean t$e Unilever 6roup o! &ompanies &omprisin% Unilever 7" ", Unilever 4LC and t$eir respective su)sidiary companies' (he &oard o
Unilever means the 3irectors o Unilever A'>' and Unilever %LC'ref:THE NEWS

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Envoirment policy

Hindustan Unilever Limited 8HUL9 supplies $i%$ quality %oods and servi&es to meet t$e daily needs o! &onsumers and industry" *n doin% so, t$e Company is &ommitted to e3$i(it t$e $i%$est standards o! &orporate (e$aviour to'ards its &onsumers, employees, t$e so&ieties and t$e 'orld in '$i&$ 'e live" )$e &ompany re&o%nises its 1oint responsi(ility 'it$ t$e 6overnment and t$e 4u(li& to prote&t environment and is &ommitted to re%ulate all its a&tivities so as to !ollo' (est pra&ti&a(le means !or minimisin% adverse environmental impa&t arisin% out o! its operations" )$e &ompany is &ommitted to makin% its produ&ts environmentally a&&epta(le, on a s&ienti!i&ally esta(lis$ed (asis, '$ile !ul!illin% &onsumers5 requirements !or e3&ellent quality, per!orman&e and sa!ety" )$e aim o! t$e 4oli&y is to do all t$at is reasona(ly pra&ti&a(le to prevent or minimise, en&ompassin% all availa(le kno'led%e and in!ormation, t$e risk o! an adverse environmental impa&t arisin% !rom pro&essin% o! t$e produ&t, its use or !oreseea(le misuse" )$is 4oli&y do&ument re!le&ts t$e &ontinuin% &ommitment o! t$e /oard !or sound Environment Mana%ement o! its operations" )$e 4oli&y applies to development o! a pro&ess, produ&t and servi&es, !rom resear&$ to !ull-s&ale operation" *t is appli&a(le to all &ompany operations &overin% its plantations, manu!a&turin%, sales and distri(ution, resear&$ : innovation &entres and o!!i&es" )$is do&ument de!ines t$e aims and s&ope o! t$e 4oli&y as 'ell as responsi(ilities !or t$e a&$ievement o! t$e o(1e&tives laid do'n"

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The (ision )$eir vision is to &ontinue to (e an environmentally responsi(le or%anisation makin% &ontinuous improvements in t$e mana%ement o! t$e environmental impa&t o! t$eir operations" HUL 'ill a&$ieve t$is t$rou%$ an *nte%rated Environment Mana%ement approa&$, '$i&$ !o&uses on 4eople, )e&$nolo%y and +a&ilities, supported (y Mana%ement Commitment as t$e prime driver"

+MC6 Markets
,lo'do'n in %ro't$ : t$en = years o! de&line

)M!G Ma#*et +,LL !atego#iesG#owth.

00 ? ; < = 0 -= -< ;"7 3"< ->"> -="5 0> 0= 03

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+MC6 Markets
=00A - Bevival a!ter = years o! de&line

)M!G Ma#*et +,LL !atego#iesG#owth.

0= ? ; < = 0 -= -< ->"> 0"? -="5 -="? ="0 ;"> 03 @> 50< @= 50< @3 50< @< 50<

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Pricin" action in 899:;

Price reduction

Price reduction -Bottle!. % 1alue improvement -Sac$et!.

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Inve!tment Be$ind Brand!

Innovation % Superior /uality

Family H sa e 2dvance rom germs

%etalso t

;ater $ e ort saving

Kuic1 !ash F =#C

Ao mud +in

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%er ect +adiance L= in ,J hair Fresher )reath health )ene its

(otal Care

;hiter teeth

Current Mar et Context

Action! M %ricing HLaundry E %rice +eduction H0hampoosE >alue Improvement $ Lo!er %rice %oints H(oothpasteE >alue Corrections $ 08U rationali/ation M Investments )ehind )rands H Innovations H Kuality H Higher 2$% M Corrective actions in processed 26

Proce!!ed Food! M Corrective actions H %hased stoc1 reduction H ;ithdra!l o N#? innovation H 3e ocus o 2tta in unvia)le geographies M 0ales decline o "BC arising rom a)ove actions M Mar1et shares held I improved

BRANDS
Sa$es G #&t"'

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PRODUCTS

Lu Li e)uoy Liril Hamam 0ur :-cel +in ;heel 0unsil1 Aaturals Clinic 2-e +e-ona

!ree"e 3ove %ears +e-ona Fair $ Lovely %ond6s

%epsodent CloseFup La1me

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2yush

&roo1e &ond Lipton 8issan

&ru

8!ality ;all6s

India(s La %est ) anded FMCG E*+# te

It !as ,<B"' (he reality o India then !as very di erent rom !hat it is today' India6s economy then su ered rom oreign e-change shortage' Hindustan Lever voluntarily decided to ta1e up :-ports to support the country6s economy'

(oday, HUL is India6s largest e-porter o )randed Fast Moving Consumer Goods' It has )een recogni/ed )y the Government o India as a Golden 0uper 0tar (rading House' 5ver time, HUL has developed appropriate capa)ilities to )e glo)ally competitive in cost and 4uality Focu! Area! HUL6s :-ports ocuses on t!o )road areas' It is a sourcing )ase or Unilever )rands in Home $ %ersonal Care (H%C) and (ea or supplies to other Unilever companies' It also ocuses on )ecoming a pre erred supplier to )oth nonFUnilever and Unilever clients in three categories in !hich India, as a country, has competitive advantage F Marine %roducts, Castor and its 3erivatives and +ice' HUL enDoys international recognition !ithin Unilever and outside or its 4uality, relia)ility and speed o or a via)le :-ports )usiness'

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customer service' HUL6s :-ports geography comprises, at present, countries in 2sia, 2ustralia, 2 rica, Aorth 2merica and :urope'

&*L<! Export! portfolio &PC; (he categories are soaps, s1in care products and oral care products' (he )rands are Lu-, Li e)uoy, %ears, Fair $ Lovely, 3ove, >aseline, CloseFUp, %epsodent, 0ignal' HUL is the only source o %ears soap across the !orld'

Tea; (he categories are )randed pac1et tea, and instant tea or Unilever6s readyFtoFdrin1 tea )usiness' (he )randed teas are &roo1e &ond, &roo1e &ond +ed la)el, &roo1e &ond (aD Mahal, Lipton, Lipton Oello! La)el, Lipton Green La)el, Lipton &ris1, Lipton ?FinF, premi-, Chinese +ic1sha!' Marine Product!; HUL o ers a comprehensive port olio, ranging rom 0urimi, Cra)stic1s to 0hrimps and several valueFadded products' 2mong its customers is Icelandic, the !orld6s third largest sea ood company' In addition, HUL has also )ecome a part o Unilever6s supply chain in sea oods or :urope too' HUL6s Marine %roducts )rands are 5cean 3iamond, 5cean :-cellence, 0hogun, Hima, Gold 0eal, (ara and %rima' #ice; (he categories are &asmati +ice and &asmati +iceF)ased readyFtoFeat rice meals' (he )rands are Gold 0eal Indus >alley, +o/ana and 2nnapurna' 30

Ca!tor; (he categories are Castor 5il, CastorFoil )ased products, li1e hydrogenated castor oil, ," F Hydro-y 0tearic 2cid, +icinoleic 2cid (used in grease and lu)ricant industry, paints and sur ace coatings, cosmetics, emulsi iers), and 0peciality Castor 5ils (U0% grade, &% grade, 32& ,#) etc used in pharmaceutical preparations' HUL6s Castor )rand is (opsol' (oday, :-ports is a su)stantial )usiness in HUL, accounting or a)out ,"C o the company6s turnover' HUL )elieves that its competitive o cost competitiveness, process competitiveness and advantages

economies o scale )oth at the company and country level, hold it in good stead' (hey position the company to )ecome one o the hu)s or sourcing )y Unilever companies in H%C and (ea, and also simultaneously )ecome a pre erred partner to glo)al customers in Marine %roducts, Castor and +ice' 'irect Sellin"; Product #an"e M Lever home range M Male grooming M 5ral Care M 2yurveda M %ersonal ;ash M Foods #eac$ = >?99 to)n! -Lar"e!t in India. Con!ultant (a!e = @@9,999

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Accordin"ly, &*L<! aim! are to; :nsure sa ety o its products and operations or the environment )y using standards o environmental sa ety, !hich are scienti ically sustaina)le and commonly accepta)le' 3evelop, introduce and maintain environmental management systems across the company to meet the company standards as !ell as statutory re4uirements or environment' >eri y compliance !ith these standards through regular auditing' 2ssess environmental impact o all its activities and set annual improvement o)Dectives and targets and revie! these to ensure that these are )eing met at the individual unit and corporate levels' +educe ;aste, conserve :nergy and e-plore opportunities or reuse and recycle' Involve all employees in the implementation o this %olicy and provide appropriate training' %rovide or dissemination o in ormation to employees on environmental o)Dectives and per ormance through suita)le communication net!or1s' :nctheirage suppliers and coFpac1ers to develop and employ environmentally superior processes and ingredients and coF operate !ith other mem)ers o the supply chain to improve overall environmental per ormance'

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 ;or1 in partnership !ith e-ternal )odies and Government agencies to promote environmental care, increase understanding o environmental issues and disseminate good practice'

#e!pon!i(ilitie! Corporate (he &oard and the Management Committee o HUL is committed to conduct the company operations in an environmentally sound manner' (he Management Committee !illE 0et mandatory standards and esta)lish environmental

improvement o)Dectives and targets or HUL as a !hole and or individual units, and ensure these are included in the annual operating plans' Formally revie! environment per ormance o the company once every 4uarter' +evie! environment per ormance !hen visiting units and

recognise e-emplary per ormance' Nominate; F 2 senior line manager responsi)le or environmental per ormance at the individual HUL site' = &*L environmental coordinator+ (he Management Committee, through the nominated

environmental coordinator !illE

34

 :nsure implementation o the standards stipulated

HUL %olicy on environment and under relevant national I local

compliance !ith Unilever and HUL environmental standards and legislation' ;hen )elieved to )e appropriate, apply more stringent criteria than those re4uired )y la!' 2ssess environmental impact o HUL operations and esta)lish strategies or sound environment management and 1ey implementation steps' :nctheirage development o inherently sa er and cleaner

manu acturing processes to environment per ormance'

urther raise the standards o

:sta)lish appropriate management systems

or environment

management and ensure regular auditing to veri y compliance' :sta)lish systems or appropriate training in implementation o :nvironment Management 0ystems at !or1' :nsure that all employees are made a!are o collective responsi)ilities to!ards environment' 2rrange or e-pert advice on all aspects o environment individual and

management' %articipate, !herever possi)le, !ith appropriate industry and Government )odies advising on environmental legislation and interact !ith national and local authorities concerned !ith protection o environment' Individual *nit!

35

 (he overall responsi)ility or environment management at each unit !ill rest !ith the Unit Head, !ho !ill ensure implementation o HUL %olicy on environment at unit level' Concerned line I heads o departments are responsi)le or managers

environmental per ormance at department levels' In order to ul ill the re4uirements o the :nvironment %olicy at each site, the Unit Head !illE 3esignate responsi)le a unit environment coordinator !ho !ill )e

or coFordinating environmental activities at unit,

collating environmental statistics and providing I arranging or e-pert advice' 2gree !ith the Management Committee Mem)er responsi)le or the unit, speci ic environmental improvement o)Dectives and targets or the unit and ensure that these are incorporated in the annual o)Dectives o the concerned managers and o icers and are revie!ed periodically' :nsure that the unit complies !ith Unilever and HUL mandatory standards and the relevant national and state regulations !ith respect to environment' :nsure ormal environmental ris1 assessment to identi y

associated environmental aspects and ta1e appropriate steps to control ris1s at accepta)le levels' :nsure that all ne! operations are su)Dected to a systematic and ormal analysis to assess environmental impact' Findings o such e-ercises should )e implemented prior to commencement o the activity'

36

 Manage change in %eople, (echnology and Facilities through a planned approach )ased on training, ris1 assessment, preF commissioning audits and adherence to design codes' +egularly revie! environment per ormance o the unit against set o)Dectives and targets and strive or continual improvement' 0ustain a high degree o regular promotional environmental a!areness through and employee participation

campaigns

through training, sa ety committees, emergency drills etc' :nsure dissemination o relevant in ormation on environment

!ithin the unit and to outside )odies, and regularly interact !ith Government authorities concerned or protection o environment' Maintain appropriate emergency procedures consistent !ith availa)le incidents' %rovide appropriate training to all employees' :nsure periodic audits to veri y compliance !ith environment management systems and personally carry out sample environment audits to chec1 e icacy o the systems' +eport environmental statistics to HUL Corporate 0a ety $ :nvironment Group on a monthly )asis' technologies to prevent I control environmental

#e!earc$ and Innovation Centre5!

0ince most ne! products and processes are developed in these Units, certain additional

37

responsi)ilities devolve on them to ensure implementation o responsi)ilities outlined a)ove, the heads o these units !illE

the

:nvironment %olicy o the company' In addition to the Unit Head6s

:nsure that a ormal and systematic ris1 assessment e-ercise is underta1en during the processIproduct development stage !ith speci ic re erence to environmental impact' (rans er technology to the pilot plant and main production through a properly documented process speci ication !hich !ill clearly de ine environmental impact and ris1s associated !ith processes, products, ra! material and inished product handling, transport and storage' :nsure that treatment techni4ues are developed or any !astes generated as a result o the ne! productIprocess and is incorporated into the process speci ications' /*ALIT2 POLIC2; Hindustan Unilever Limited considers 4uality as one o the principal strategic o)Dectives to guarantee its gro!th and leadership in the mar1ets in !hich it operates' (he company is committed to respond creatively and competitively to the changing needs and aspirations o their consumers through relentless pursuit o technological e-cellence, innovation and 4uality management across their )usinesses, and o er superior 4uality products and services that are appropriate to the various price points in the mar1et as !ell as to their commitment to )uilding shareholder value' 38

(he company recognises that its employees are the primary stheirce o success in its operations and is committed to training and providing them the necessary tools and techni4ues as !ell as empo!ering them to ensure )road )ase compliance o this policy in the organisation at all levels' (he company is committed to ul ill its legal and statutory o)ligations and international standards o product sa ety and hygiene and !ill not 1no!ingly sell product that is harm ul to consumers or their )elongings' It !ill institute systems and measures to monitor compliance in order to meet its responsi)ilities to consumers' (he company !ill maintain an open communication channel !ith its consumers and customers and !ill care ully monitor the eed)ac1 to continuously improve its products and services and set 4uality standards to ul ill them' (he company is committed to e-tend its 4uality standards to its contract manu acturers, 1ey suppliers and service providers and )y entering into alliances !ith them, to Dointly improve the 4uality o that is outsourced' (he company !ill periodically revie! this 4uality policy e ectiveness and consistency !ith )usiness o)Dectives' (he company delegates authority and responsi)ility or dissemination and implementation o this policy to each &usiness and Unit Head' or its its products and services' (his policy is applica)le to production rom its o!n acilities as !ell as to production

39

SAFET2 AN' &EALT& POLIC2 Introduction Hindustan Unilever Limited (HUL) supplies high 4uality goods and services to meet the daily needs o consumers and customers' In doing so, the Company is committed to e-hi)it the highest standards o corporate )ehavior to!ards its consumers, employees, the societies and the environment in !hich !e operate' (o!ards this, the Company recogni/es its responsi)ility to ensure sa ety and protection o health o its employees, contractors and visitors in all its operating sites, !hich include manu acturing, sales and distri)ution, research la)oratories and o ices during !or1 and !or1 related travel' (his %olicy document de ines the vision, principles, aim, re4uired actions and scope o the policy application as !ell as the responsi)ility or e-ecution' T$eir 1i!ion (heir vision is to )e an inDury ree organi/ation' &*L NE6SEJ;e !ill )ring sa ety on top o mind or all employees and !ill integrate it !ith all )usiness processes' ;e !ill reali/e their >ision through an Integrated 0a ety Management approach, !hich ocuses on %eople, %rocesses, 0ystems, (echnology and Facilities, supported )y demonstrated leadership and employee commitment at all levels as the prime drivers or ensuring a sa e and healthy !or1 environmentJ'

40

0a ety %rinciplesE
HUL6s 5ccupational 0a ety and Health %olicy is )ased on and supported )y the ollo!ing eight %rinciples' (hese %rinciples have the same status as the Company6s Code o &usiness %rinciplesE 2ll inDuries and occupational illnesses are preventa)le 2ll operational e-posures can )e sa eguarded 0a ety evaluation o all )usiness processes is vital ;or1ing sa ely is a condition o employment (raining all employees to !or1 sa ely is essential Management audits are a must :mployee involvement is essential 2ll de iciencies must )e reported and corrected promptly In order to acilitate operationalisation o the 0a ety %rinciples, a separate document has )een prepared, !hich coversE a) 0a ety %rinciples )) 0uccess Criteria c) Illustrative 8%I

41

 Consumer satis action

Indira is "# years old, a tri)al !oman at 8ondegaon village in &astar district' 0he is Dust )ac1 rom the near)y Dungles, collecting ire!ood' 2 ter attending to her )a)y son, she !ill go to the village !ell to ta1e a 4uic1 !ash' Oesterday her hus)and )rought her a !hite soap, !ith pin1 petals in it' Indira had re4uested him to )uy one, or the estival later this evening' Indira is among millions o consumers in rural India !ho use Hindustan Lever6s products' 0he came to 1no! a)out Lu- through the (> set at the community centre' It is not very costly, and also availa)le near)y' Home to over @## million people, rural India comprises not only over @#C o India6s )illionFstrong population, )ut also over ,"C o the !orld6s population' (he rural population already accounts or su)stantial consumption o Fast Moving Consumer Goods and also consumer the demand or )lac1 $ !hite dura)les' 2)out =#C o the sales o soaps $ detergents are generated in rural India' 0imilarly, almost hal comes rom there' television sets, pressure coo1ers, ta)le ans, se!ing machines also

42

Cost managementE
&ut the potential is even larger, )oth in terms o consumption and

penetration' (he act that @#C o the population accounts or only =#C o even relatively !ellFpenetrated categories, li1e soaps $ detergents, indicates the enormous scope o consumptionFled gro!th in these categories' (here ore such categories !ill derive gro!th out o increased usage' In categories, !hich are relatively less penetrated, li1e personal products, rural India o ers an even )igger gro!th opportunity through greater penetration and then consumption' For e-ample only three out o ,# consumers in rural mar1ets use shampoo or s1in care products' (here ore gro!th in such categories !ill emerge, as more consumers purchase these products, and then continue to use them regularly' Hindustan Lever has ta1en many initiatives over the decades to create mar1ets in the rural hinterlands' &y mar1eting relevant products, at a orda)le prices' 2 uni4ue e-ample is Hindustan Lever6s Li e)uoy soap' In rural India, health is o paramount importance, )ecause indisposition is very directly related to loss o income' Li e)uoy, !hose core e4uity is health and hygiene , has or decades no! )een synonymous !ith soap in rural India' 2t the same time, i products have to come up the order in the rural purchase hierarchy, they have to )e a orda)le' I rural India today accounts or a)out hal o detergents sales, it is )ecause HUL has or developed lo!Fcost valueF orFmoney )randed products, li1e ;heel' (he company has also ta1en initiatives to create mar1ets even apparently premium products, )y o ering them in pac1 si/es, li1e sachets, !hose unit prices are !ithin the reach o rural consumers' For e-ample, initiated in the ,<7#s, sachets (+s'", +e',, or =# paise) today

43

constitute a)out ==C o Hindustan Lever6s shampoo sales' ;ith media reach gradually increasing, rural consumers today, !here the media has its ootprints, share the same aspirations !ith their ur)an counterparts' HUL has responded to the trend !ith lo! unit price pac1s o even other products F Lu- at +s'=, Li e)uoy at +s'", 0ur :-cel sachet at +s','=#, %ond6s (alc at +s'=, %epsodent toothpaste at +s' =, Fair $ Lovely 01in Cream at +s'=, %ond6s Cold Cream at +s'=, &roo1e &ond (aa/a tea at +s'='

5ther mar1eting strategiesE

For decades no!, Hindustan Lever has also ta1en initiatives to circumvent the limitation in communication channels, )y innovatively leveraging nonFconventional media' 2mong them are !all paintings, cinema vans, !ee1ly mar1ets (haat), airs and estivals' Given the rural consumer6s airs and ascination or cinema, the cinema vans sho! popular rural li e' (hey give an movies, interspersed !ith products advertisements' ;ee1ly mar1ets, estivals are parts and parcel o opportunity to address consumers, spread over many tiny hamlets, at one location' (he occasions are used to demonstrate product )ene its and also sell such products' 0uch demonstrations have played a signi icant role in creating, or e-ample, the detergents mar1et in rural India' In recent times, such demonstrations are )eing deployed to illustrate ho! visi)le clean is not hygienic clean, and ho! using soap is essential to prevent easily avoida)le in ections' Communication through consumer contact' For airs and e-ample, estivals are )ac1ed )y direct in ,<<7F<<, Hindustan Lever

implemented a maDor direct consumer contact, called %roDect &harat, !hich covered "'" crore homes' :ach home !as given a )o-, at a special price o +s',=, comprising a lo! unit price pac1 o shampoo,

44

talcum po!der, toothpaste and s1in cream, along !ith educational lea lets and audioFvisual demonstrations' (he proDect has helped eliminate )arriers to trial, and has strengthened salience o )oth particular categories and )rands' 0imilarly in "##", Hindustan Lever has launched a similar largeFscale direct contact, called Li e)uoy 0!asthya Chetana, !hich already covers @# million people in ,7,### villages o 7 states' (he proDect is intended at generating a!areness a)out good health and hygiene practices, and speci ically ho! a simple ha)it o !ashing hands is essential to maintaining good health' (he initiative !ill involve interaction !ith students and senior citi/ens, !ho act as change agents'

2vaila)ility o HULs %roductE

Generating a!areness pays dividends only !hen steps are ta1en to ensure constant availa)ility o availa)ility determines products' In rural India particularly, and mar1et share, )ecause the volumes

consumer usually purchases !hat is availa)le at the outlet, in luenced very largely )y the retailer' (here ore, over the decades, Hindustan Lever has progressively

strengthened its distri)ution reach in rural India, !hich today has a)out ?? la1h outlets' 3irect rural distri)ution in Hindustan Lever )egan !ith the coverage o villages adDacent to small to!ns' (he company6s stoc1ists in these to!ns !ere made to use their in rastructure to distri)ute products to outlets in these villages' &ut this distri)ution mode could only )e e-tended to villages connected !ith motora)le roads, and it could cover a)out "=C o the rural population )y ,<<=' (here ore in ,<<7, Hindustan Lever launched %roDect 0treamline to urther e-tend its distri)ution reach' Under this initiative, the company

45

identi ies su)Fstoc1ists in a large village, connected )y motora)le road to a small to!n' (his su)Fstoc1ist in turn distri)utes the company6s products to outlets in adDacent smaller villages using transportation suita)le to interconnecting roads, li1e cycles, scooters or the ageFold )ulloc1 cart' Hindustan Lever is thus trying to circumvent the )arrier o motora)le roads' 2s a result, the distri)ution net!or1, as o no!, directly covers a)out =#,### villages, reaching a)out "=# million consumers' (he company simultaneously uses the !holesale channel, suita)ly incentivising them to distri)ute company products' HUL has in the recent past esta)lished a common distri)ution system in rural areas or all its products' Given the num)er o )rands and their pac1s the rural retailer usually re4uires, one HUL representative can ta1e all the products rom the company port olio that he needs' (his common distri)ution system is no! region o the country' 5ver time, Hindustan Lever !ill urther strengthen its rural distri)ution through mutually )ene icial alliances !ith rural 0el Help Groups (0HGs)' 5ver the last ive years, inancial institutions, AG5s and government organisations are !or1ing closely to esta)lish 0HGs, !hose o)Dective is to alleviate poverty through sustaina)le incomeFgenerating activities' 0ince "##,, Hindustan Lever is implementing %roDect 0ha1ti, !here)y 0HGs are )eing o ered the option o distri)uting relevant products o the company as a sustaina)le incomeFgenerating activity' (he model hinges on a po!er ul !inF!in relationship. the 0HG engages in an activity !hich )rings sustaina)le income, !hile Hindustan Lever gets an inter ace to interact and transact !ith the rural consumer' HUL6s vision or %roDect 0ha1ti is to scale it up across the country )y "##=, creating a)out "=### 0ha1ti entrepreneurs, covering ,##,### villages, and 46 ully operational, under one +egional 0ales Manager e-clusively dedicated to rural mar1ets o each

touching the lives o ,## million rural consumers' &egun !ith =# groups in Aalgonda district o 2ndhra %radesh, !ith the support o local authorities, the proDect has )een e-tended, as o no!, to a)out =#,### villages in ," states' 2 typical 0ha1ti entrepreneur conducts )usiness o around +s',#,### F +s ,=,### per month, !hich gives her an income o a)out +s @## F +s',### per month on a sustaina)le )asis' 2s most o these !omen are rom )elo! the poverty line, and live in e-tremely small villages (less than "### population), this earning is very signi icant, and is almost dou)le o their past household income' (he ull )ene it o %roDect 0ha1ti !ill )e realised a ter some years'

47

&*L 'IST#IB*TION NET6O#A

#$%UF$&'U(I%) U%I'* $LL $&(+** I%DI$

C:+ >

C:+ =

C:+ 3

C:+ <

C:+ 5

C:+ ;

C:+ 7

,)CCD*,),

,)CCD*,),

,)CCD*,),

,)CCD*,),

,)CCD*,),

,)CCD*,),

,)CCD*,),

#HCLE,.LEB,
BE).*LEB,

CU,)CMEB,

(his is the !hole 3istri)ution Chain o HUL to cover the +ural mar1et' (he company has remar1a)ly !or1ed upon to ma1e the supply chain rom manu acturers to retailers simple !ith very e! num)ers o mediators and Do))ers' It has helped them to maintain the transparency in the cycle and also have let them esta)lished a prompt delivery process' (he products are manu actured in the actories all across India and then is supplied rom there to the various Carriage and For!arding (C$F) units !hich are =F,# per state depending on the area they have to cover and are esta)lished )y the company' (hese C$F units then supply the products to the various ;holesalers con ined to their area 48

only and according to the !holesalers demand' (he !holesalers then supply the products to the semiF!holesalers and the retailers as per the volume o their order' (hen the semiF!holesalers deliver the products to the retailers and customers'

M.7U+.C)UBEB

STAGE /0
C:+

In this stage the products reach to the Carriage and For!arding unit rom various manu acturing units esta)lished all across India' (he volume o the delivery depends upon the 4uantity re4uiredIordered )y the C$F unit' (he depot sends the re4uest o the volume o the products to the Head 5 ice, !hich then order the various actories to supply the products to the mentioned depot' (he supply is met !ithin a !ee1' HUL has *= C$Fs !ith @### stoc1ists and "###P suppliers and associates to target the mar1et'

C:+

STAGE 10
#HCLE,.LEB,

(he C$F then supplies the products according to the demand o various !holesalers' :ach o the depot cover a region assigned to them' :ach C$F ac4uires =F@ truc1s and hire *F= more truc1s to supply products everyday' (hey !or1 on the concept o advance payment )y 33 )y the !holesalers and deposit them in the )an1 !hich is trans erred to the head o ice'

49

NATION 6I'E MAN*FACT*#IN4;

7# actories, across India

(he year !as ,<"?' Lord Leverhulme, the legendary ounder o Lever &rothers, !as visiting India' (he nationalist sentiment in India !as or locally manu actured products' Lord Leverhulme, !ho )elieved that !hat is good or a country is e4ually good or the company, responded to that aspiration )ecause he too shared that dream'

His dream ultimately !as realised in ,<?*' In 0eptem)er ,<?*, a ter more than a decade o discussions in London and in India, a Lever actory !as allo!ed to sprout on the land that had )een reclaimed )y the &om)ay %ort (rust at 0e!ri' From here, a month later rolled out the irst ca1e o 0unlight soap to )e manu actured in India' (he same year, Lever &rothers too1 over the Garden +each Factory in 8ol1ata'

(hese t!o actories !ere the irst in a manu acturing )ase, !hich today literally dots the length and )readth o India' From 2ssam to GuDarat, rom Uttaranchal to 8erala'

Hindustan Lever6s diverse product range is today manu actured in a)out

50

7# actories' In addition, the company outsources rom ,=# other units' (he operations involve ",### suppliers and associates'

'E1ELOPIN4 BACA6A#' A#EAS

0everal HUL actories are situated in )ac1!ard areas' (he company has consciously responded to the national policy o development o )ac1!ard areas )y setting up manu acturing units in these places, !hich provide several direct and indirect employment opportunities or these areas, and leads to general economic development o these regions through industrialisation' In act, all maDor investments o HUL, in recent years, have )een either in 2FCategory )ac1!ard areas or AoFIndustry 3istricts' (hese include actories in 8hamgaon and Oavatmal (Maharashtra), Chhind!ara (Madhya %radesh), 5rai, 0umerpur and 8halila)ad (Uttar %radesh), Haldia (;est &engal), 0ilvassa (3adra $ Aagar Haveli), %ondicherry, Goa, 3oom 3ooma (2ssam), Harid!ar (Uttaranchal) and &aroti!ala (Himachal %radesh)' 0ince "##, itsel , HUL has set up nine ne! actories in )ac1!ard areas' :4ually, HUL has an envia)le trac1 record in ta1ing over sic1 enterprises, in response to re4uests rom Government, and converting them into via)le operations' (he company6s units at Mangalore and +aDpura all )ear testimony to this achievement' In the process, HUL has saved precious Do)s and developed local economies' HUL6s manu acturing Unilever !orld' HUL has adopted (otal %roductive Maintenance ((%M) or achieving acilities, li1e the 8hamgaon soap plant and the

0umerpur detergent )ar unit, are recognised as among the )est in the

51

manu acturing e-cellence since ,<<*' 2s on date, (%M is in di erent stages o implementation in "7 actories' Four HUL actories have already received the (%M Consistency 2!ard, and ,* actories have )een a!arded !ith the (%M :-cellence 2!ard'

Mar1eting needs every !here

Ho! do you ensure that Mr' +amesh in 8anya1umari gets his Li e)uoy soap and Mrs' 8ul1arni in Gammu gets to 1no! ho! &ru co ee tastes even )e ore she has )ought itQ ;ell, you need to have a cutting edge distri)ution net!or1 in place' Hindustan Lever6s distri)ution net!or1 is recognised as one o its 1ey strengths' Its ocus is not only to ena)le easy access to our )rands, )ut also to touch consumers !ith a threeF!ay convergence F o product availa)ility, )rand communication, and higher levels o )rand e-perience' HUL6s products, manu actured across the country, are distri)uted through a net!or1 o a)out @,### redistri)ution stoc1ists covering a)out one million retail outlets' (he distri)ution net!or1 directly covers the entire ur)an population' (he general trade comprises grocery stores, chemists, !holesale, 1ios1s and general stores' Hindustan Lever services each !ith a tailorF made mi- o services' (he emphasis is e4ually on using stores or direct contact !ith consumers, as much as is possi)le through inFstore acilitators'

52

AT T&E S*PE#MA#AETS
0el Fservice stores and supermar1ets are ast emerging in metros and large to!ns' (o service modern retailing outlets in the metros, HUL has set up a ullFscale sales organisation, e-clusively or this channel' (he )usiness system delivers e-cellent customer service, !hile driving gro!th or the company and the store' 2t the same time, innovative mar1eting initiatives are ta1en to provide consumers !ith e-perience o our )rands at the store itsel , through product tests and inFstore sampling'

In t$e villa"e!
HUL has also revamped its sales organisation in the rural mar1ets to ully meet the emerging needs and increased purchasing po!er o the rural population' (he company has )rought all mar1ets !ith populations o )elo! =#,### under one rural sales organisation' (he team comprises an e-clusive sales orce and e-clusive redistri)ution stoc1ists, under the charge o dedicated managers' (he team ocuses on )uilding superior availa)ility, !hile ena)ling )rand )uilding in the deepest interiors' HUL6s distri)ution net!or1 in rural India already directly covers a)out =#,### villages, reaching a)out "=# million consumers, through a)out B### su)Fstoc1ists' &arne!!in" Information Tec$nolo"y 2n I(Fpo!ered system has )een implemented to supply stoc1s to redistri)ution stoc1ists on a continuous replenishment )asis' (he o)Dective is to catalyse HUL6s gro!th )y ensuring that the right product is availa)le at the right place in right 4uantities, in the most costFe ective manner' For this, stoc1ists have )een connected !ith 53

the company through an InternetF)ased net!or1, called +0Aet, or online interaction on orders, despatches, in ormation sharing and monitoring' +0 Aet covers a)out 7#C o the company6s turnover' (oday, the sales system gets to 1no! every day !hat HUL stoc1ists have sold to almost a million outlets across the country' +0 Aet is part o %roDect Leap, HUL6s endFtoFend supply chain, !hich also includes a )ac1Fend stretching system connecting right suppliers, upto all company stoc1ists' sites and

S&AATI = C$an"in" Live! in #ural India 0ha1ti is HUL6s rural initiative, !hich targets small villages !ith population o less than "### people or less' It see1s to empo!er underprivileged rural !omen )y providing incomeFgenerating opportunities, health and hygiene education through the 0ha1ti >ani programme, and creating access to relevant in ormation through the i0ha1ti community portal' In general, rural !omen in India are underprivileged and need a sustaina)le source o income' AG5s, governmental )odies and other institutions have )een !or1ing to improve the status o rural !omen' 0ha1ti is a pioneering e ort in creating livelihoods or rural !omen, organised in 0el FHelp Groups (0HGs), and improving living standards in rural India' 0ha1ti provides critically needed additional income to these !omen and their amilies, )y e4uipping and training them to )ecome an e-tended arm o the company6s operation' 0tarted in "##,, 0ha1ti has already )een e-tended to a)out 7#,### villages in ,= states F 2ndhra %radesh, 8arnata1a, (amilnadu, Maharashtra, GuDarat, Madhya %radesh, Chattisgarh, Uttar %radesh, +aDasthan, %unDa), Haryana, ;est &engal, 5rissa, &ihar $ Ghar1hand' (he respective state governments and several AG5s are actively involved in the initiative' 54

0ha1ti already has a)out "=,### !omen entrepreneurs in its old' 2 typical 0ha1ti entrepreneur earns a sustaina)le income o a)out +s'@## F+s',,### per month, !hich is dou)le their average household income' 0ha1ti is thus creating opportunities or rural !omen to live in improved conditions and !ith dignity, !hile improving the overall standard o living in their amilies' In addition, it involves health and hygiene programmes, !hich help to improve the standard o living o the rural community' 0ha1ti6s am)it already covers a)out ,= million rural population' %lans are also )eing dra!n up to )ring in partners involved in agriculture, health, insurance and education to cataly/e overall rural development' HUL6s vision or 0ha1ti is to scale it up across the country, covering ,##,### villages and touching the lives o ,## million rural consumers )y "##=' 0ha1ti >ani is a social communication programme' ;omen, trained in health and hygiene issues, address village communities through meetings at schools, village baithaks, 0HG meetings and other social ora' In "#*, 0ha1ti >ani has covered ,#,### villages in Madhya %radesh, Chattisgarh and 8arnata1a' (he vision is to cover 7#,### villages in "##=' i0ha1ti, the InternetF)ased rural in ormation service, has )een launched in 2ndhra %radesh, in association !ith the 2ndhra %radesh Government6s +aDiv Internet >illage %rogramme' (he service is no! availa)le in Aalgonda, >isha1apatnam, ;est Godavari and :ast Godavari districts' i0ha1ti has )een developed to provide in ormation and services to meet rural needs in medical health and hygiene, agriculture, animal hus)andry, education, vocational training and employment and !omen6s empo!erment' (he vision is to have ?,=## 1ios1s across the state )y "##=' 55

Pioneerin" Ne) C$annel!

Hindustan Lever is simultaneously creating ne! channels, designed on the same principle o holistic contact !ith consumers' Pro3ect S$a ti, HUL6s partnership !ith 0el Help Groups o rural

!omen, is )ecoming an e-tended arm o the company6s operation in rural hinterlands' 0tarted in "##,, %roDect 0ha1ti has already )een e-tended to a)out =#,### villages in ," states F 2ndhra %radesh, 8arnata1a, GuDarat, Madhya %radesh, (amil Aadu, Chattisgarh, Uttar %radesh, 5rissa, %unDa), +aDasthan, Maharashtra and ;est &engal' (he respective state governments and several AG5s are actively involved in the initiative' (he 0HGs have chosen to partner !ith HUL as a )usiness venture, armed !ith training rom HUL and support rom government agencies concerned and AG5s' &indu!tan Lever Net)or -&LN. is the company6s arm in the 3irect

0elling channel, one o the astest gro!ing in India today' It already has a)out ?'= la1h consultants F all independent entrepreneurs, trained and guided )y HLA6s e-pert managers' HLA has already spread to over ,=## to!ns and cities, covering 7#C o the ur)an population, )ac1ed )y *" o ices and "*# service centres across the country' It presents a range o customised o erings in Home $ %ersonal Care and Foods' Out=of=&ome consumption o products and services is a gro!ing

opportunity in India, as else!here in the !orld' Hindustan Lever is already the largest player in the hot )everages outFo Fhome segment, !ith over ,=### tea and co ee vending points' (he company is e-panding the net!or1 aggressively, in the education, entertainment, leisure and travel segments' HUL6s allaince !ith %epsi !ill signi icantly

56

strengthen

this

channel'

&ealt$ % Beauty Service! are Hindustan Lever6s simultaneous oray to meet the increasing consumer need or such products and services' La1me 0alons provide specialised )eauty services and solutions, under the recognised authority o products' Hindustan Lever, !hich once pioneered distri)ution in India, is today reinventing distri)ution F creating ne! channels, and rede ining the !ay current channels are serviced' In the process it is converging product availa)ility, !ith )rand communication and )rand e-perience' the La1me )rand' (he 2yush (herapy Centres provide easy access to authentic 2yurvedic treatments and

A5>:L %+53UC( A:; %+5C:00

Hindustan Lever6s mission is to meet everyday needs or nutrition, hygiene, and personal care, !ith )rands that help people eel good, loo1 good and get more out o li e' HUL6s research $ development )ase, one o the largest in Indian industry, helps achieve this mission, !ith novel products and ne! processes' (he company has over ?7# patents, demonstrating its leading edge in consumerFrelevant +$3'

57

(he Hindustan Lever +esearch Centre (HL+C), !ith acilities in Mum)ai and &angalore, and glo)al technology centres in India have over "## highly 4uali ied scientists and technologists, many !ith postFdoctoral e-perience ac4uired in the U0 and :urope' 0et up in ,<=7, HL+C6s aim is to develop ne! products and processes, improving )ene its and 4uality o e-isting products, and optimal use o resources' MaDor innovations have ta1en place, do!n the decades, in every category in !hich HUL is present' From Home Care to %ersonal care, &everages to Foods' Better cleanin", le!!er )ater con!umption Consider or e-ample, HUL6s development o a !aterFsaving technology or its detergents' 5ne o the most severe pro)lems that India aces today is shortage o !ater' ;ater scarcity a ects one in every three Indians' In a typical Indian home, at least "#C o the !ater consumed goes )ehind !ashing o clothes' HUL decided that it !ould )e o immense )ene it to an Indian household, i a technology could )e developed, !hich !ould help reduce !ater consumed in !ashing o clothes' HUL6s scientists have innovated a pathF)rea1ing technology F it reduces !ater consumption and time ta1en or rinsing )y =#C' (he technology has already )een introduced' 6orld<! mo!t advanced )ater purifier; %eople in cities and to!ns spend enormous amounts, either in uel or devices, to ensure sa e drin1ing !ater' HUL6s scientists have developed a )rea1through device, called 9%ureit9, !hich puri ies !ater as sa e as )oiled !ater, providing ,##C protection rom all !aterF )orne diseases. it also removes pesticides that may )e present in

58

drin1ing !ater' Its operation does not re4uire electricity, running tap !ater and plum)ing or e-pensive maintenance' It thus provides !ater at a cost o Dust +e', or every si- litres F or less than "# paise a litre' Iodine In Salt = t$e vital in"redient Iodine, it is !ellF1no!n, is important or the mental development o young children' Iodised salt is a !ellFaccepted mode o storage as !ell as in the process o ensuring appropriate iodine inta1e' Oet Iodine added to salt is lost in transport, coo1ing' HUL scientists have developed a patented )rea1through technology to sta)ilise iodine in salt, ollo!ing !or1 on the sta)ility o iodine under Indian conditions o storage and coo1ing' (he technology has made it possi)le to actually realise the purpose o iodised salt F that people get appropriate iodine inta1e through the ood they eat' Tec$nolo"y of ! in li"$tenin" +esearch in the )iology o s1in pigmentation has led to the ormulation o a product li1e Fair $ Lovely 01in Cream and Lotion' (he product has )een periodically updated through ne! patented actives' It has no! )ecome a glo)al success through e-ports to over ?# countries' (he product is e4ually used )y the local population o these countries, apart rom those o Indian origin' HUL has e4ually developed ne! processes' In=$ou!e mac$ine development (he company has the capa)ility to design and manu acture machines inFhouse' (his ena)les the company to set up plants at hal the cost o others' 0uch technological developments have also led to signi icant improvement in productivity'

59

Ener"y con!ervation
In the past, one o the most signi icant )rea1throughs o HUL6s research initiative has )een the development o a technology to use nonFconventional orest seed oils or soapFma1ing !hich, since the ,<@#s, has helped save around R,'" )illion in oreign e-change' HUL had received the Government o India6s prestigious a!ard or import su)stitution' compromise 3evelopment on product o 0tructurant and (echnology 4uality' or (he soap latest manu acturing also helped save costly conventional oils !ithout any per ormance technology to produce 3istilled Fatty 2cid or soap ma1ing and the resultant plant capacity e-pansion has drastically )rought do!n speci ic energy consumption !hile improving distillation yields' (he evolution o continuous soap processing technology has also reduced energy consumption' HUL )elieves that technology is critical to delight consumers' Creative application o technology has made Hindustan Lever success ul in launching products and services, !hich raise the 4uality o li e'

&ELPIN4 &AN'S;

HUL

C5MMI(0

+s'

C+5+:0

F5+

IMM:3I2(:

+:LI:F,

+:H2&ILI(2(I5A (5 (0UA2MIFHI( C5MMUAI(I:0 MUM&2I, Ganuary @, "##=E Hindustan Unilever Limited (HUL) today announced to commit, a total outlay o +s'7 crores or immediate relie 60

and helping people to reha)ilitate them so that they can resume their livelihood, in the tsunamiFhit areas o %ondicherry, (amil Aadu and 8erala' 5 this, +s'= crores (a)solute value terms) is )eing utili/ed or distri)ution o the Company6s nutritional $ personal hygiene products or immediate relie to the needy' 2nother +s'? crores !ill )e raised partly )y contri)utions rom company employees and the )alance contri)ution rom the Company to )e used in colla)oration !ith AG5s !or1ing !ith the community to provide the people, nota)ly ishermen, !ith means o livelihood and help them )ac1 on their eet' 0ince 3ecem)er "B, employees o relie to the tsunamiFhit people' HUL (he actories and o ices in relie operations include

%ondicherry, (amil Aadu and 8erala have )een providing necessary distri)ution o )read and )iscuits to over "### amilies in %ondicherry, ,",### coo1ed meals or amilies in Chennai, Aagapattinam, Cuddalore and 2ndamans' 5ver ,",### dry relie pac1s, comprising o Company6s dry rations and personal hygiene products have already )een distri)uted' HUL6s employees are donating a day6s salary, matched e4ually )y the Company or e-clusive use in reha)ilitation' (he )iggest concern is, that peopleI ishermen have lost their means o livelihood' HUL plans to ocus its reha)ilitation e orts to restore their means o livelihood so that the local communities can 4uic1ly get )ac1 to their lives at the earliest'

HUL has al!ays )een a ront runner in its call or national duty and caring or the community' Its employees not only donate generously, )ut volunteer to ta1e part in relie operations )y committing their time and physical e ort' (his is in line !ith our corporate value o LcareJ 61

and our C0+ mission !hich has )ecome an integral part in our !ay o doing )usiness' :arlier during the GuDarat earth4ua1e, HUL had adopted and

reconstructed a ne! village, Oashodadham, in &hachau (alu1a o 8utch district' Oashodadham, spread over "= acres, comprises "7< homes, school )uilding, an e-clusive playground or children and a multiFpurpose community centre, including an angan!adi (creche), health centre, community room and panchayat o ice, an underground reservoir and an overhead tan1 or !ater' 2ll the d!elling units have electricity and piped !ater and are no! ully occupied' HUL is India6s largest Fast Moving Consumer Goods Company, touching the lives o t!o out o three Indians' HULs mission is to Ladd vitality to li e9 through its presence in over "# distinct categories in Home $ %ersonal Care %roducts and Foods $ &everages' (he company meets everyday needs or nutrition, hygiene, and personal care, !ith )rands that help people eel good, loo1 good and get more out o li e'

Special Education % #e$a(ilitation Under the Happy Homes initiative, HUL supports special education and reha)ilitation o children !ith challenges' A!$a 'aan; (he initiative )egan in ,<@B, !hen HUL supported Mother (eresa and the Missionaries o Charity to set up 2sha 3aan, a home in Mum)ai or a)andoned, challenged children, and the destitute' 0u)se4uently, 2sha 3aan has also )ecome a home to the HI>Fpositive' (he o)Dective in supporting 2sha 3aan !as and continues to )e to share the organsation6s prosperity in supporting the Mother6s mission o serving the 9poorest o the poor9' 2sha 3aan has )een set up on a @",=##F 62

s4uare eet plot )elonging to HUL, in the heart o Mum)ai city' HUL )ears the capital and revenue e-penses or maintenance, up1eep and security o the premises' (he destitute and the HI>Fpositive are provided !ith ood, shelter and medication or the last e! days o their lives' (he needs o the a)andoned challenged children are also met through special classes o )asic s1ills, physiotherapy and, i possi)le, corrective surgery' 2t any point o time, it ta1es care o over ?## in ants, destitute men and !omen and HI>Fpositive patients' 5ver the years, HUL has opened schools or challenged children !ith a sharper o)Dective o supporting amilies o such children, helping the children )ecome sel Freliant )y learning appropriate s1ills to )e productive mem)ers o the household'

An ur; In ,<<?, HUL6s 3oom 3ooma %lantation 3ivision set up 2n1ur, a centre or special education o challenged children' (he centre ta1es care o children !ith challenges, aged )et!een = and ,= years' 2n1ur provides educational, vocational and recreational activities to over ?= children !ith a range o challenges, including sight or hearing impairment, polio related disa)ilities, cere)ral palsy and severe learning di iculties' (hese physically and mentally challenged children are taught s1ills, such as coo1ery, painting, em)roidery, )am)oo cra ts, !eaving, stitching, etc depending on their aptitudes' (he centre has reha)ilitated ,# children, including sel Femployment or B children )y providing them !ith shops, and ? girls have )een provided employment as creche attendants' It has also moved to normal schools ,7 children' 0ince inception it has covered a)out 7# children' 2n1ur received the La!rie Group ;orlda!are 2!ard 63 or 0ocial

%rogress

in

,<<<

rom

H+H

%rincess

+oyal

in

London'

Aappa"am; :ncouraged )y 2n1ur6s success, 8appagam (9shelter9), the second centre or special education o challenged children, !as set up in ,<<7 on HUL %lantations in 0outh India' It has ,@ children' (he ocus o 8appagam is the same as that o 2n1ur' (he centre has ,@ children, )eing taught sel Fhelp s1ills, use ul vocational activities li1e ma1ing o paper covers, greeting cards, !rapping papers, ancy stationery, nap1ins, )rooms made out o coconut leaves, candles, and also some home care products' 2)out ," o the children have )ecome relatively sel Freliant )y earning through cra ts learnt at the centre' 0ince inception, it has covered a)out "7 children' An(a"am; Oet another day care center, 2n)agam (9shelter o love9), has )een started in "##? also in the 0outh India %lantations' It ta1es care o ,, children' &esides medical care and meals, they too are )eing taught s1ills such that they can )ecome sel Freliant and elementary studies' 5ver "#,### individuals have )ene itted rom the Happy Homes

initiatives since inception' HUL is !holeheartedly involved !ith all our centres and !ill continue to )e involved in the uture'

&IN'*STAN *NILE1E# LIMITE' 7 'ECEMBE# /*A#TE# 899B #ES*LTS

(otal 0ales gro! )y ,*'*C. FMCG 0ales gro!th at ,='7C

64

H%C

and Foods gro! )y ,@C and

<C respectively. &road

)ased gro!th across categories %&I( gro!s ,?'=C. Aet %ro it increases )y =BC :%0 or "##= gro!s ,@'BC. Final 3ividend +s "'=# per share o +e ,IF each. (otal 3ividend +s ='## per share or "##= Mum(ai, Fe(ruary >?, 899C; Hindustan Unilever Limited (HUL)

announced its results or 3ecem)er Kuarter "##=' Gro!th momentum achieved in the last three 4uarters has )een sustained !ith total sales gro!ing )y ,*'*C' 3omestic FMCG sales !ere higher )y ,='7C !ith )oth Home and %ersonal Care (H%C) and Foods per orming !ell' H%C )usiness gre! )y ,@'?C driven )y strong per ormance in all categories' 0igni icant sales gro!th !as achieved in the highly competitive categories o Laundry and 0hampoo' 0oaps recorded good gro!th, !ith Lu- gro!ing handsomely re lecting in mar1et share gains' 2ll the )rands in 01in category maintained their strong per ormance leading to a dou)le digit gro!th or the category' Consumer relevant innovations continue to drive o Fta1e and 1ey innovations during the 4uarter include the reFlaunch o variants L(hic1 and 0trongJ 0unsil1 %in1, Luor the @=Fyear cele)rations, and the national launch o

LGasmine FreshJ +in 2dvanced %o!der' In Foods )usiness, (ea achieved a modest gro!th despite a declining mar1et and alling commodity prices. Co ee continued to per orm !ell' %rocessed Foods )usiness gre! strongly, al)eit on a lo! )ase' (he Icecream )usiness also achieved a ??C increase in sales, led )y the impulse category' +elaunch o 8norr soup !ith a superior mi- and

65

introduction o ne! variants !as the 1ey Foods innovation during the 4uarter' %ro it )e ore Interest and (a-es (%&I() increased )y ,?'=C a ter a)sor)ing a =#C higher spend in 2dvertising and %romotions' Higher crude oil price led cost pressures continued, particularly in Laundry category, )ut !ere mitigated )y aggressive cost e ectiveness programs' %ro it a ter ta- (%2() gre! )y ""'@C due to a lo!er e ective ta- rate and Aet pro it, including the impact o e-ceptional items !as higher )y =BC' For full year 899B, total sales !ere ,,'*C higher than in the previous year, !ith )road )ased gro!th across categories leading to )oth H%C and Foods )usinesses gro!ing )y ,*C and 7C, respectively' Gudicious price increases coupled !ith ro)ust cost saving initiatives partly neutralised the impact o )oth cost escalations, particularly in the Laundry category, and the higher investments )ehind )rands' Conse4uently, %&I( increased )y ,',C' 2 lo!er ta- charge or the year resulted in a %2( gro!th o ,"'<C' Aet %ro it and :arnings %er 0hare at +s B'*#, gre! )y ,@'BC' Mr Harish Man!ani, Chairman commentedE L;e have sustained the gro!th momentum in 3ecem)er 4uarter and it continues to )e )road )ased across H%C and Foods categories, particularly, in the competitive categories o Laundry and 0hampoo' (his !as driven )y higher investment )ehind our )rands !ith e-citing innovations, e-cellent activation, ne! initiatives in Customer Management and !ith signi icantly higher levels o 2$% spends' (he dou)le digit sales

66

gro!th o over ,,C or the year "##= has )een achieved a ter a gap o si- years' 5ur strategic priority remains unchanged' ;e !ill continue to

leverage our ocused port olio o po!er ul )rands to sustain mar1et leadership and gro! our mar1et position across strategic )rands and categories' In a competitive landscape, !e shall continue to deliver ;e recogni/e the consumer value and invest )ehind our )rands'

challenge o in lationary cost pressures driven )y crude oil prices and, in the competitive conte-t, achieving cost leadership across the e-tended supply chain continues to )e a 1ey priority'J

'I1I'EN' (he &oard o 3irectors at their meeting held on Fe)ruary ,* th, "##B has proposed a inal dividend o +s "'=# per share o +e , each, su)Dect to the approval o the shareholders at the annual general meeting' (his along !ith the interim dividend o +s "'=# per share amounts to a total dividend o +s ='## per share or the year "##=' HUL is India6s largest Fast Moving Consumer Goods company, touching the lives o t!o out o three Indians' HULs mission is to add vitality to life through its presence in over "# distinct categories in Home $ %ersonal Care %roducts and Foods $ &everages' (he company meets everyday needs or nutrition, hygiene, and personal care, !ith )rands that help people eel good, loo1 good and get more out o li e' &*L T#ANSFE#S TEA ESTATES IN'IA TO MA06ELL 4OL'EN TEA P#I1ATE LIMITE'

67

!umbai" !ar#h $%" &$$': Hindustan Unilever Limited

(HUL) has

trans erred its entire shareholding in its ,##C su)sidiary (ea :states India Limited ((:IL) to Ma-!ell Golden (ea %rivate Limited (MG(), a ;ood)riar Group company on March ,, "##B' (:IL o!ns 7 tea estates and B tons' ;ood)riar Group has interests in plantations, insurance services and real estate' (he Groups gardens are spread across the premium tea gro!ing regions in (amilnadu and 8erala' HUL management )elieves that the proposed trans er to ;ood)riar Group is in the )est interest o the tea plantation )usiness and all its sta1eholders' :-isting terms and conditions o services o all (:IL employees !ill )e ully protected in accordance !ith applica)le la!s and terms o their employment' (he ac4uisition o (:IL )y ;ood)riar Group !ill provide scale and )ring in synergy )ene its to ;ood)riar Group, as a large portion o (:IL gardens are contiguous to the e-isting tea gardens o ;ood)riar Group' Canara &an1, Madurai Circle has unded the de)t component to ;ood)riar Group or this ac4uisition' ;ith this disposal o shareholding in (:IL, HUL has completed its e-it rom its tea plantations )usiness )oth in 0outh India and 2ssam' It may )e recalled that HUL had sold its interests in +ossell Industries Limited and 3oom 3ooma (ea Company Limited in 2ssam during the last ," months' actories or processing tea in the highFyielding )elt o (amilnadu !ith an average annual output o appro-' ,#,=## metric

68

30% Merrill Lynch Limited acted as Unilever Limited ' A(out &*L;

inancial advisor to Hindustan

HUL is India6s largest Fast Moving Consumer Goods Company, touching the lives o t!o out o three Indians' HUL6s mission is to 9add vitality to li e9 through its presence in over "# distinct categories in Home $ %ersonal Care %roducts and Foods $ &everages' (he company meets everyday needs or nutrition, hygiene, and personal care, !ith )rands that help people eel good, loo1 good and get more out o li e' For more in ormation visit !!!'HUL'com

#ESEA#C& MET&O'OLO42
(he section includes the overall research design, the sampling procedure, the data collection method, the ield method, and analysis and procedure' #ESEA#C& 'ESI4N For this research proDect e-ploratory method is using 'ATA COLLECTION MET&O'

69

(he data collect or the research can )e classi ied as primary data and secondary data' %rimary data is )y visiting e-isting customer and rom internet, )oo1s, e-pected customer o Hindustan Unilever Limited and ma1ing them ill up the 4uestionnaire' 0econdary data is maga/ine etc'

+:0:2+CH IA0(+UM:A(
(he instrument use or data collection is structured 4uestionnaire'

Kuestion is open and close ended depending upon the in ormation that needed to )e elicited' I am also using the scaling techni4ue to assess the attitude o the customer' SAMPLIN4 PLAN 8eeping all the constrains in mind a sample si/e o ,## people '(he sampling procedure is systematic sampling

70

SCOPE
(he Indian FMCG mar1et currently appears to )e at a crossroads, and HUL are attempting to change customer perceptions o their )rands and !here speci ic )uying motivations appear to )e replacing generalities' (his mean!hile is 4uite unli1e the !est !here )uyers consider aesthetics, com ort and sa ety, not necessarily in that order, )e ore inalising a purchase' LIts smarter to thin1 a)out emotions and attitudes, i mar1eters are to do a )etter Do) o marrying !hat a HUL o ers to the consumers image o the o erings' 2nother important outcome o the research is the )elieva)ility o the claims' Most o the claims are realistic and easy to understand' Most o the people dont understand the 4uality claims )y HUL' (he mindset o the Indian consumer is such that he is delighted i he )uys a pen a little cheaper than his neigh)our' (hings are, ho!ever, slo!ly changing and customers at the upper end o the mar1et are no! ready to pay more or more' I hope that this approach !ill soon enter the ne! era, may)e not !ith the same intensity' L0uccess !ill largely )e determined to the e-tent a company can di erentiate itsel in terms o intangi)les that go !ith a %roductJ' (hus, success could !ell hinge on the )est o )undle o services that HUL provides'HUL gre! rom /ero to the ","B7 Million R, mar1 and the num)er 5ne FMCG company in India this year' Loo1ing at the present scenario it can )e said that though there is lot o competition in the mar1et )ut HUL is pic1ing up !ell' (he landmar1 achievement comes in @* years in India a ter clinching its irst overseas sale'

#ECOMMEN'ATIONS
71

(he HUL and %$G companies having good mar1et share in India and it 1eep on increasing' &oth the co' i'e' HUL and %$G should open e-clusive shop' HUL is already having e-clusive shop in Mum)ai called 02AG2M 0(5+:' &ut it is only in India so it should )e increased' (he employee should )e given uni orms in !hich the name o the company should )e printed, )y doing this the sales people get motivated' (hese shops should )e opened or "* hours' (hey should o er "* hours ree home delivery system' (he delivery vehicle should )e attractive the name o the company should )e printed in that so that it )ecomes the sources o advertisement' (he companies should emphasis on its advertisement. there should )e &+2A3 FI( in that' For e-ample, Lu- launching its advertisement eaturing 0hahru1h 1han !ith young girls' It !as heavily critici/ed )ecause it !as not it !ith the )rand' It adversely a ects the opinion o the customer and it results in decrease in sales' &oth companies should emphasis their )usiness in areas' (hey should penetrate their )usiness in the rural areas' B<C o the Indian population lives in rural areas' (here is huge mar1et there and very less mar1et has )een penetrated' &oth these companies should concentrate on rural areas' %$G has )een hardly )een seen in the rural areas' 0o they should increase their presence' (hey should increase their C0+ activities in northern India' 2t present they are currently doing their C0+ in southern India' 0o they should increase their activities in north India also'

S*44ESTIONS
Aey attri(ute! component!;

72

 >alue or money and Customer Care 5perational attri)utes' %hysical attri)utes' &rand Image' Customer 0peci ic 3etails' In any correspondence !ith the customers the message should )e sent in these components only to have the ma-imum )ene it advertisement' 2lso these components should )e rom the !ith dealt

independently' (he advertisements should spea1 only o the )elieva)le concepts rather than glori ying the pretentious ones' (he )asic need o the customer need to )e addressed !hich is actually not much e-pensive and )etter 4uality' HUL sales gro!th in Gune "##* !as decreased due to the pro)lem !ith promotion and pricing' 2lthough )eing the most competitive product on the )asis o the Mar1et 5perating %rice (M5%), the shampoos are still not selling much' (his is perhaps due to the )argaining stress on the customer and the !ea1 push given )y the dealer to the particular item, !hen actually it should )e sold li1e a high volume product' 2nother serious suggestion is that HUL must give good attention to their all the products rice and all are not getting much attention' (he dealers dont provide much support to the customers in ma1ing them understand the real Kuality )ehind them' :ither, the technical details should )e presented in a clearer manner or the dealers need to )e educated properly'

LIMITATIONS

73

:verything in this !orld has its o!n advantages and disadvantages !hich sho!s Nnothing is per ect' Follo!ing are the pro)lems aced )ut its a part o gameE ,' (IM: C5A0UMIAGE It is very much o)vious that it is a time consuming process' 0o much time has )een spent or this purpose' "' L5; %2+(ICI%2(I5AE 5)viously many respondents have not participated in this and have also created some pro)lems !hich simply sho!s that they !ere not interested' ?' &I20A:00E 0ometimes interested customers !ere also )iased so the collected igures involve )oth positive and negative igures' *' It does not cover all the aspects o the company' =' 0U&G:C(I>:E (his proDect only tells you !hat it is all a)out'

BIBLIO4#AP&2
,' (he (imes o India and Hindustan (imes "' (he :conomic (imes

74

?' Companys )rochure *' !!!'google'co'in =' !!!'HUL'com

75