A PROJECT REPORT ON
ANALYSIS OF H.U.L.ON MARKETING MIX AND ITS CONSUMER BEHAVIOUR SUBMITTED IN PARTIAL FULFILNENT FORTHE AWARD OF DEGREE OF MASTER OF BUSINESS ADMINISTRATION (U.P. TECHNICALUNIVERSITY, LUCKNOW) 2009-11
Submitted To: Submitted By: Miss. Jyoti Gupta Purnendra kumar Srivastava LECTURER
M.B.A III rd SEM
JEEVANDEEP INSTITUTE OF MANAGEMENT AND TECHNOLOGY BADALALPUR VARANASI
M.B.A 1
CERTIFICATE OF COMPLETION
CERTIFIACATE
Certified that this project report “ANALYSIS OF HUL ON 4P’S OF MARKETING AND ITS CONSUMER BEHAVIOUR” is the bona-fide work of “PURNENDRA SRIVASTAVA” who carried out the project work under my supervision.
……………………………… …………………………………
MISS. JYOTI GUPTA
MR. ANIRBAN
BATTHACHARYA (Lecturer)
T.S.O.
VARANASI M.B.A 2
J.D.I.M.T VARANASI
DECLARATION
I PURNENDRA KUMAR SRIVASTAVA, hereby declare that the project work entitled “ANALYSIS OF PUREIT ON 4 P’S OF MARKETING AND CONSEMER BENHAVIOUR” is an authenticated work carried out by me at HINDUSTAN UNILIVER LIMITED under the guidance of Mr. Anirban Batthacharya for the partial fulfillment of the award of M.B.A and this work has not been submitted for similar purpose anywhere else except to J.D.I.M.T, Varanasi, approved by U.P.T.U.
M.B.A 3
Date:
(PURNENDRA KUMAR
Place:
SRIVASTAVA)
ACKNOWLEDGEMENT
I take this opportunity to express my gratitude to the Management of HUL at Varanasi for providing me the opportunity to get an exposure of their esteemed unit. I am sincerely thankful to the HR department for coordinating my training and explicitly express my thanks to Mr. Vinod Mishra for their continued help and guidance during my training. Last but not the least, I express my deep gratitude to my mentor Mr. Anirban Batthacharya for sending me to a large integrated water division of Pureit of HUL and giving me a chance to acquire experience of my lifetime. I also express my thanks to parents and all family members and friends who directly or indirectly provided me their moral support.
M.B.A 4
(PURNENDRA KUMAR SRIVASTAVA)
M.B.A III Sem.
J.D.M.T Varanasi.
EXECUTIVE SUMMARY 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 like, Dove, Lifebuoy, Lipton, Lux, Pepsodent, Ponds, Rexona, Sunsilk, Surf, Vaseline etc. Some 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 Colgate-Palmolive.
M.B.A 5
HUL is also known for its strong distribution network in India. In order to further strengthen its distribution, HUL launched a Project SAFE WATER ZONE in 2003 in Chennai. The idea behind this project was to protect lives to water borne disease such as typhoid, jaundice and diarrhea. In 2007 water division started national. Now it presents in all states and already protected 15 million lives.
TABLE OF CONTENTS
TITLE PAGE NO.
CERTIFICATE
OF
COMPLETION
2 Certificate 2.1 STUDENT
DECLARATION
3 ACKNOWLEDGMENT 4 Executive
Summary
5
M.B.A 6
Table of contents 6-7 8
List
of
figures Keywords
8
1. Company Profile
9-10
1.1Introduction
11
1.2 History
12
1.3 Doing well by doing good
13
1.4 Product line
14-23
1.5 Corporate social responsibility
24
1.6 SWOT analysis of HUL
25-26
1.7 A clear direction
27
1.7.1 Purpose
27
Mission & Vision
2. Introduction to project topic
28
29-30
2.1 Water Purifier- Pure it
31-32
2.2 Some basic facts on water problem
33-34
2.3 Product analysis –Pure it
35-
40 2.4 Competitors
41
2.5 How Pure it is better than other water purifier
42
M.B.A 7
3. 4 P’S of Marketing Strategies
43-48
4. Scope and objective of the study
49
4.1 Scope of the study
50
4.2 Objective of the study
50-51
5. Research Methodology 52 5.1 Research design
53
5.2 Sampling plan
54
5.3 Assumption of the study
54
5.4 Data collection 5.4.1 Primary data
55 55
5.4.2 Secondary Data
56
6. Data analysis and Interpretation
57-69
Findings and Recommendations
70
Limitations
71
Conclusion
72
Annexure
73-77
Bibliography
78
M.B.A 8
LIST OF FIGURES
Clustered column chart 3-D clustered column Clustered cylinder chart 3-D Clustered cylinder chart Pie chart Exploded pie chart
KEY WORDS
•
H.U.L
: Hindustan Uni-liver Limited M.B.A 9
•
F.M.C.G
: Fast moving consumer goods
•
B.D.O
: Business Development Officer
•
T.S.O
:Territory Sales Officer
•
Z.S.O
:Zonal sales Officer
•
F.Y
: Financial Year
COMPANY PROFILE & INTRODUCTION
M.B.A 10
Company Profile
M.B.A 11
Type Industry Founded Headquarter
Key people
Products Revenue Employees Parent Website
:
Public company BSE:HUL Fast Moving Consumer Goods (FMCG)
:
: :
1933 Mumbai, India
:
Harish Manwani (Chairman),
:
Nitin Paranjpe (CEO and Managing Director)
:
Home & Personal Care, Foods, Water Purifier
:
Rs 20,869.57 crore (US$ 4.45 billion) (20082009)
:
Over 65,000 direct & indirect employees
:
Unilever Plc
:
www.HUL.co.in
Introduction to HUL Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company, touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages.
M.B.A 12
The company’s Turnover is Rs. 20, 239 crores (for the 15 month period – January 1, 2008 to March 31, 2010). HUL is a subsidiary of Unilever, one of the world’s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of €40.5 billion in 2008. Unilever has about 52% shareholding in HUL Hindustan Unilever was recently rated amongst the top four companies globally in the list of “Global Top Companies” for Leaders” by a study sponsored by Hewitt Associates, in partnership with Fortune magazine and the RBL Group. The company was ranked number one in the Asia-Pacific region and in India. The mission that inspires HUL's more than 15,000 employees, including over 1,400 managers, is to “add vitality to life". The company meets everyday needs for nutrition, hygiene, and personal care, with brands that help people feel good, look good and get more out of life. It is a mission HUL shares with its parent company, Unilever, which holds about 52 % of the equity.
History HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and has employee M.B.A 13
strength of over 15,000 employees and contributes for indirect employment of over 52,000 people. The company was renamed in June 2007 to “Hindustan Unilever Limited”. The Anglo-Dutch company Unilever owns a majority stake (52%) in Hindustan Unilever Limited. HUL was one of the eight Indian companies to be featured on the Forbes list of World’s Most Reputed companies in 2007 Heritage HUL’s 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. HUL’s brands -- like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Sun silk, 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.
Doing Well by Doing Good HUL believes that an organization’s 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 M.B.A 14
has also responded in case of national calamities / adversities and contributes through various welfare measures, most recent being the relief and rehabilitation of the people affected by the Tsunami disaster, in India. HUL’s 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 single-minded in identifying itself with Indian aspirations and needs in every walk of life. 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.
Brands for life (Product Line)
Hindustan Unilever Limited has been the pioneer in the field of Food brand, Home care brands, personal care brands, water purification systems, Nutrition, Health, Hygiene & beauty products
M.B.A 15
The following are the basic products of Hindustan Unilever Ltd., which has always promised to provide safe and healthy living. Food Brands.
Home Care Brands.
Personal Care Brands. Water Purification System.
Food brands HUL is one of India’s leading food companies. Our passion for understanding what people want and need from their food - and what they love about it - makes our brands a popular choice.
M.B.A 16
Brooke Bond 3 Roses Playful banter, a little mischief, serious conversation… there’s no time for young couples like the time spent sharing a cup of 3 Roses. To keep a relationship going, every young couple needs a little time to talk Annapurna Partnering with the mom in nurturing her dreams, Annapurna Atta is aimed at helping her provide wholesome tasty nutrition to her family. Annapurna Atta is aimed at helping the homemaker provide wholesome, tasty nutrition to her family.
Red Label India’s favorite cup of tea, the great taste of Red Label brings people closer together and strengthens relationships. The brew that bonds.
Brooke Bond Taaza
Brooke Bond Taaza lifts me and unshackles my mind, allowing me to see and realize possibilities. The great refreshment of Taaza inspires women to have an identity beyond their homes and to refresh their lives.
Taj - Mahal M.B.A 17
Brooke Bond Taj Mahal is an exclusive selection of teas for the discerning consumer. A taste for the finer things in life. Taj Mahal is not just a cup of tea, it is a sensory experience
Bru Ek cup Bru aur mood ban jae… Some moments in life are special and close to the heart. Bru makes these moments with loved ones even more magical…Its India’s largest coffee brand that offers a range of products in Instant coffee, Conventional coffee and premixes....Its rich aroma and unique blend makes every moment come alive…
Knorr. Knorr helps families make meal times special, nutritious, tasty and healthy
Kwality Wall’s A good honest scoop of daily pleasure.
. Kwality Wall’s, the brand with a big heart, offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians – kids, teens and adults. We do so with our very popular brands - Cornetto, Feast, Paddle Pop, Selection & our award winning parlour concept, Swirl’s.
Home care brands HUL has a diverse portfolio of brands offering home care solutions for millions of consumers across India. M.B.A 18
Active Wheel Active Wheel de "Mehnat se Aazadi" Freedom from painful & tiring laundry Active Wheel enables consumers to perform laundry chores, giving “Great Clean” within less effort.
Cif Cif- the best cleaner to let you shine. Cif- The World’s leading cream cleaner which gives you the power to deal with the toughest dirt is now in India.
Comfort The world’s largest fabric conditioner brand. For most homemakers, ensuring their family's well-being is of utmost importance. Every task, whether it’s preparing a meal or washing the clothes, is an expression of her love and affection for the family.
Domex The sheer power of Domex bleach gives you the confidence you need, eradicating all known germs. The sheer power of Domex bleach gives you the confidence you need, eradicating all known germs. With Domex, you can be absolutely certain that the job is done. Rin M.B.A 19
Rin provides ‘best in class whiteness’ which is demonstrable. Clothes talk for us. Rin plays an integral part in enabling us to look good by providing demonstrably superior whites, giving us the confidence to realize our ambitions.
Sunlight Sunlight is a color care brand. A dash of pink, a splash of yellow, a hint of purple and a bit of orange. Colours can liven up any wardrobe and can make you look and feel precious and if there’s one detergent brand that’s committed to colour care, it’s Sunlight
Surf Excel Giving your kids the freedom to get dirty and experience life, safe in the knowledge that Surf Excel will remove those stains. When children go out to play and get dirty, they don't just collect stains. They experience life, make friends, share with each other and learn from each other. This helps them get stronger and get ready for the world outside
Vim Created in 1885, the Vim brand is still innovating and using the magic of natural ingredients to create unbeatable results over a hundred years later.
Personal care brands M.B.A 20
Our personal care brands, including Axe, Dove, Lux, Pond's, Rexona and Sunsilk, are recognized and love by consumers across India. They help consumers to look good and feel good – and in turn get more out of life. Aviance Aviance enables women actualize their unique potential through expert customized beauty solutions. The Aviance promise Aviance believes that no two women are alike. A truly beautiful woman is constantly searching for ways to express and celebrate her own individuality. Aviance was created to empower this woman. Encourage her. And help her become all she can be.
Axe Axe with Best Quality Fragrance. AXE is a cool, iconic, youth brand available in more than 60 countries. In India, Axe, which has been launched in 1999, is the largest selling Male Deodorant.. Breeze Breeze, with the goodness of glycerin gives soft, fragrant and smooth skin. Breeze makes use of a new revolutionary global technology which enhances the impact of world class perfumes in a much larger way, apart from bringing out the goodness of glycerine.
Clear New Clear with Essential Oils, guarantees Zero dandruff and leaves your hair feeling fabulous. M.B.A 21
New Clear. Zero dandruff, Just fabulous hair
Clinic Plus Clinic Plus is India’s largest selling shampoo and has won the trust the millions of families across India. Clinic Plus understands that healthy hair is an important asset which helps your family progress in life and empowers you.
Closeup Freshness that brings you Closer. Closeup is synonymous with ‘Freshness’ that gives you the confiden be close to someone.
Dove Dove stands for real beauty. All around the world, Dove is making real women feel more beautiful! Since 1993, Indian women have relied on Dove for beautiful skin. Dove is known to be a keeper of promises and has given real products to women world over.
Fair & Lovely More than 30 years ago, a unique brand was born. Wrapped within a humble lavender tube, it went on to become the World’s No.1 Fairness cream. M.B.A 22
Hamam Holistic skin care experiences perfected over the ages to deliver healthy, beautiful skin Hamam brings alive the wisdom behind time-less skincare rituals in convenient and contemporary formats
Lakme Lakme is an ally to the Indian Woman and inspires her to express her unique beauty and sensuality. Thus, enabling her to realize the potency of her beauty.
“Lakme is the Indian woman’s Beauty Sutra” – inspiring expression of her unique beauty and sensuality
Lifebuoy Lifebuoy is available in multiple variants in soaps and specialist formats such as liquid handwash, catering to the entire family.
Lifebuoy, an undisputed market leader for 112 years, has a compelling vision “to make 5 billion people across the world, feel safe and secure by meeting their personal care hygiene & health needs
Liril Awaken, and enliven your senses with a Liril bath.
M.B.A 23
Over time, Liril has come to be synonymous with the freshness of limes, active energy and freedom of expression by its symbolic display of the uninhibited female form.
Lux Lux believes in passion for beauty. It continues to be a favorite with generations of users for a sensuous experience of luxury. Lux stands for the promise of beauty and glamour as one of India's most trusted personal care brands. Pears Pears – the purest and most gentle way to skincare! Pears launched in India in 1902, exuberates a long heritage of purity. It is so pure that you can actually see through it!
Pepsodent Pepsodent India is committed to improve the overall Oral health of Indians. Pepsodent is a 15 year old brand that offers various oral care solutions to specific need based solutions.
M.B.A 24
Pond’s Get the expert to look after your skin Pond’s, has been listening to women’s needs and desires for 150 years and this has enabled us to deliver new products customised to their needs. Pond’s accompanies them on their journey to enhance the beauty of their skin.
Rexona Rexona gives you 24 hr protection from sweat and body odour and therefore the confidence to handle whatever the day has in store.
Corporate Social Responsibility HUL’s corporate social responsibility strategy seeks to address HUL's most significant sustainability impacts of hygiene, nutrition, enhancement of livelihoods, reduction of greenhouse gases and water footprint by integrating these objectives into our brands , our people and our processes.
-
Provided income-generating opportunities to 45,000 Shakti entrepreneurs in rural areas Across 15 states in 100,000 villages through Project Shakti M.B.A 25
-
Lifebuoy Swasthya Chetna has touched 12crore people in more than 50676 villages Across India since 2002
-
Pureit is available in more than 1500 towns nationally and already covers over 3 million Household’s across India.
-
Exceeded the target of reducing CO2emissions from manufacturing operations by 25% on a base of 2004
-
Twenty Eight of our manufacturing sites are zero water discharge sites.
M.B.A 26
M.B.A 27
S.W.O.T ANALYSIS STRENGTH
HUL enjoys a formidable distribution network covering over 3400 distributors and 16 million outlets. The new sales organization named 'One HUL' brings "Household and Personal Care" and foods distribution networks together, thereby aligning all the units towards the common goal of achieving success. HUL has been continuously able to grow at a rate more than growth rate for FMCG Sector, thereby reaffirming its future stronghold in Indian market. Weaknesses HUL market dominance, originating from its extensive reach and strong brand presence, allowed it to raise the prices even as raw materials were getting cheaper. Hence, though the volumes decreased, the margins grew, and company was able to earn more profits. But higher margins attracted competition in areas of operations. HUL strategy remained focused on creating power brands and earning higher margins. It was not left with any other option but to try cutting down the costs in order to protect volumes, if not increase it. Opportunities
India is one of the world's largest producers of FMCG goods but its exports are miniscule as compared to production. Though Indian Cos. has been going global, their focus is more towards Asian countries because of the similar preferences. HUL is one of the top companies exporting FMCG goods from India. An expansion of horizons towards more and more countries would help HUL grow its consumer base and henceforth the revenues. Penetration levels for some major categories like skin-cream (22%), shampoo (38%), toothpaste (48%) and processed foods, continue to remain low offerings but great growth opportunities products
Threats
ITC has reduced its dependence on the cigarettes business - Contribution of the core business in revenues has come down from 87% in FY99 to 70% in FY’05. Over a period of five years, ITC has extended its presence into areas like foods, retailing, hotels, greetings, agriculture, paper, etc. These are businesses that can give it growth impetus in the long run. With ITC gaining M.B.A 28
momentum in each of these businesses, it is turning into a consumer monolith, and hence, the greatest threat to HUL's Business.
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 people’s lives and in doing the right thing. As our business grows, so do our responsibilities. We recognize 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.
Purpose & Principles Our corporate purpose states that to succeed requires "the highest standards of corporate behavior towards everyone we work with, the communities we touch, and the environment on which we have an impact."
Mission M.B.A 29
“Unilever's mission is to add Vitality to life.”
Vision “We're constantly developing our brands and Products to keep pace with the changes in Consumers’ lives”
M.B.A 30
INTRODUCTIO N TO PROJECT TOPIC
INTRODUCTION TO PROJECT TOPIC
M.B.A 31
India with a population of 120 crores is potentially one of the largest consumer markets in the world. With urbanization and development of economy tested and interests of people changes according as the advanced nation. Marketing of any product depends upon the consumer’s wants, preferences, and taste. In market we’ll consider things very carefully because FMCG is the essential consumer need purchased by individual to fulfill the need and for refreshment also. There’re many ways to consumer awareness & sell water purifier products in the market like dealers distribution, kiosk (canopy), d2d, cold call(referral, database..) etc. Applying various tools and techniques every water purifier company like HUL, EURKA FORBES, TATA, KENT etc. try to capture the market. . To increase the sales of water purifier products initially, the position of the company in the market is to offer various range of products. Potentiality of given products of the company strike rate of the company products and finally the current market share of the company products in the same product profile segment of the market must be known to us. So that we can design and implement the right marketing strategy for increase sales and consumer awareness as well as know the water drinking Habits in VARANASI City. In making a market survey of “Access water purifiers on 4P’s of Marketing”, I along with help my team members meet about 100 peoples. In the area which provided by my company guide to me, we tried to find out the success of marketing strategy like: sales of our products, brand and product awareness among the people.
Water Purifier-Pure it
M.B.A 32
Pureit is the world’s most advanced in-home water purifier. Pureit, a breakthrough offering of Hindustan Unilever (HUL), provides complete protection from all water-borne diseases, unmatched convenience and affordability. Pureit’s unique Germ kill Battery technology kills all harmful viruses and bacteria and removes parasites and pesticide impurities, giving you water that is "as safe as boiled water". It assures your family 100% protection from all water-borne diseases like jaundice, diarrhea, typhoid and cholera. What’s more, it doesn’t need gas, electricity or continuous tap water supply. Pureit not only renders water micro-biologically safe, but also makes the water clear, odourless and good-tasting. Pureit does not leave any residual chlorine in the output water. The output water from Pureit meets stringent criteria for microbiologically safe drinking water, from one of the toughest regulatory agencies in the USA, EPA (Environmental Protection Agency). The performance of Pureit has also been tested by leading scientific and medical institutions in India and abroad. This patented technological breakthrough has been developed by HUL. This state-of –the-art engineering developed by a team of over 100 Indian and international experts from HUL and Unilever Research Centers has made Pureit possible at the consumer price of just Rs. 2000. Pureit runs with a unique ‘Germ kill Battery Kit’™ that typically lasts for 1500 liters* of water. The ‘Germ kill Battery Kit’ is priced at Rs.365. This means consumers will get 4 litres of water that is ‘as safe as boiled water’ ™ for just one rupee, which works out to an extremely affordable 24 paise per litre. Pureit in-home purification system uses a 4 stage purification process to deliver “as safe as boiled water” without the use of electricity and pressurized tap water.
Pureit purifies the input drinking water in four stages, namely; M.B.A 33
1. Micro-fiber Mesh - Removes visible dirt 2. Compact Carbon Trap - Removes remaining dirt, harmful parasites & pesticide impurities 3. Germ kill Processor
TM
– uses 'programmed chlorine release chlorine technology' and its
stored germ kill process targets and kills harmful virus and bacteria 4. Polisher
TM
– removes residual chlorine and all disinfectant by-products, giving clear
odourless and great tasting water 5. Battery Life Indicator - Ensures total safety because when the germ kill power is exhausted, the indicator turns red, warning you to replace the battery
M.B.A 34
Some basic facts on water Problems
Infected water causes an estimated 80 percent, of disease in India, according to the World Health Organization (WHO).
About half the world’s reported cases of polio, a crippling disease which is waterborne, occur in India.
Each year, diarrhea kills 500,000 Indian children.
M.B.A 35
Water is pure at the source which is the municipal treatment plant. It comes to your house through pipes.
These pipes are very old and have rusted, which may be the cause of contamination.
Sewage lines are also in contact with underground water pipes.
People also break open pipes at places to have access to water. These open cracks allow contaminated matter to get inside the water pipes.
With the ever growing problem of safe drinking water faced in India, HUL has come with a social initiative of providing safe and pure drinking water by means of Pureit, a quality yet affordable water Pureit.
M.B.A 36
Product analysis (Pure it) Pureit- a water purifier designed and developed to provide “as safe as Boiled water” Performance Pureit removes visible dirt, kills all viruses and bacteria, removes parasites and pesticide impurities giving you water that is ‘as safes as boiled water’
Additional Features:
Great sensorial – Clear, odour-free water : removes organics, pesticides, suspended matter (turbidity)
Any time , any where performance : works
-
Without electricity
-
Without piped water
M.B.A 37
Convenience – No hassles of boiling, No maintenance costs like plumbing
Cost – Rs. 1/- for every 4 Liters of water
The Technology:
Chlorination of water is a known fact & is used as a world wide phenomenon by municipal corporations for supply of potable water.
It kills all bacteria and viruses in water.
However chlorine added I n water by these corporation is not done scientifically especially in third world countries like). Hence the amount of chlorination may be more or less depending on the quantity of water; thus again making this water unsafe for human consumption.
M.B.A 38
← Frame
← Non woven
(polyester cloth filter)
MICRO FIBRE MASH •
Material – Non woven polyester
•
Removes suspended particulate > 10 micron
•
Reduces filtration load on CCT
•
Average flow rate of 5 lit/min COMPACT CARBON TRAP •
Material – intermediate activated carbon
•
Binder is used for holding the carbon granules
•
Removes particulate impurities < 10 micron
•
Removes organic load – improves taste of water
•
Removes pesticides
•
Removes cysts M.B.A 39
GERM KILL PROCESSOR Attached with batching chamber. Stored germ-kill power target and kill harmful viruses and bacteria Unique Auto Switch off Technology –
> After the battery life indicator turns fully red, the purifier will begin to overflow from the battery life indicator on the front side. > Some water may still pass through the purifier. However, please note that the purifier has stopped purifying water & the water may no longer be safe for drinking. > The purifier has been designed to overflow to indicate that the battery has not been replaced even after it has turned fully red.
M.B.A 40
POLISHER
•
Made by activated granular carbon and coated by silver.
•
This design has reduced pressure drop, eliminating the level of fines coming in the water and reduced wastage of plastics in battery
•
Removes chlorine and disinfection by-products.
•
Radial flow design – low pressure drop.
•
Finally removes all odour, makes water visually clear & gives great tasting water
M.B.A 41
Performance testing Leading scientific institutions o
Central Food Technology Research Institute.
o National Institute of Cholera and Enteric Diseases o Indian Public Health Association o Institution of Public Health Engineers
Leading Medical Institutions o King Institute of Preventive Medicine o Sundaram Medical Foundation o Apollo Hospitals o SRL Ranbaxy Clinical Reference Laboratories
Leading International Institutions o London School of Hygiene and Medicine UK o
Scottish Parasite Diagnostic Laboratory, Glasgow, UK
M.B.A 42
COMPETITOR Whirlpool Eureka Forbes Ltd. Usha Brita Kent zero B Philips
Ken star
Tata Swatch
New Era (OSMO & Total aqua Fresh)
Key player in local market at VARANASI. Hindustan Unilever Ltd. Eureka Forbes Ltd. Kent Philips
M.B.A 43
How a Pureit is better than other method of water purifier:Main Feature
Remove/Kills •
Viruses
•
Bacteria
•
Pesticides
Pureit Boil water Advance
Yes
Must boil
Advance
UV inline
Storage
Purifier
Purifier
Yes
No
water 3040minute
End off life indicator
Yes
No
Yes
No
Auto switch off
Yes
No
Yes
No
18 ltr. Water storage
Yes
Yes
No
Yes
Capacity Manual backup
Yes
Yes
No
Yes
Not require Gas
Yes
No
Yes
Yes
Not require electricity
Yes
Yes
No
Yes
Dual fill Facility
Yes
No
No
No
Yes
No
Yes
No
(Manual or Auto fill) Better Taste of water Removes Smell M.B.A 44
MARKETIG STRATEGY
MARKETIG MIX
TARGET MARKET STRATEGY
STRATEGY (Short-
(Long Term)
PRODUCT/ SERVICE STRATEGY
PROMOTION/ MARKETING COMMUNICATION STRATEGY
Term)
PRICE STRATEGY
DISTRIBUTION STRATEGY
4 P’S of Marketing Strategies The major marketing management decision can be classified on one of following four categories
Product
Price M.B.A 45
Place
Promotion
These variables are known as the marketing mix or 4 P’s of marketing. They are the variables that marketing managers can control in order to best satisfy customers in the target market.
Product: The product is the physical product or service offered to the costumer. In the case of physical product, it also refers to any services or conveniences that are part of the offering. Product decision includes aspects such as functions, appearance, packaging, service, warranty, etc.
Price: Pricing decision should take into account profit margins and the probable pricing response of competitors. Pricing includes not only the list price, but also discounts, financing, and other options such as leasing.
Place: Place decisions are those associated with channels of distribution that serve as the means for getting the product to the target customers. The distribution system performs transactional, logistical, and facilitating functions.
M.B.A 46
Promotion: Promotion decisions are those related to communicating and selling to potential consumers. Since these costs can be large in proportion to the product price, a break-even analysis should be performed when making promotion decision. It is useful to know the value off a customer in order to determine whether addition customers are worth the cost of acquiring them.
M.B.A 47
PRODUCT/SERVICE STRATEGY OF WATER PURIFIER
4 variety available in the market
Easy availability nation wide
Best quality of used plastic (ABS food grade)
Best quality based technological parts used.
Designed and developed to provide “As safe as Boiled Water”
Very attractive design in two color ( Royal blue and Burgundy )
Pure it removes visible dirt, kills all harmful viruses and bacteria,
Removes parasites and pesticide impurities giving you water is “as Save as Boiled water”
Great sensorial- Clear, odour-free water: removes organics,
Pesticides, suspended matter (turbidity)
Any time, anywhere (portable) performance : works-without electricitywithout piped water
Very easy to use
Convenience – No hassles of boiling, No maintenance costs like Plumbing
Cost- Rs.1 /- for every 4 Liters of water
Top most brand name ( Hindustan Unilever Ltd )
Quick service ( with In 24 hour )
Life time free service
6 month warranty period
M.B.A 48
PRICE STRATEGY OF WATER PURIFIER
Penetration strategy
Product price range started for 1000 – 5200
Very Low cost of maintenance and consumable
Low cost for product
Best price for other than competitor
Attractive discount on replacement of device for customer
No credit terms
Attractive allowance for dealers
PROMOTION / MARKETING COMMUNICATION STRATEGY OF WATER PURIFIER
Activated subscription immediately
Fastly installation of products
Properly repair services
Free Services during life time
Commercial TV advertisement
Advertisement in news paper
Broacher
Sales force (8000+ across country) M.B.A 49
Marketing surveys through:-
o Kiosk o Demonstration o Cold call o Reference by old customer
PLACE / DISTRIBUTION STRATEGY OF WATER PURIFIER Launched in Chennai : end 2003 Identify the place’s where Increase impurities than use for water Identify the place’s where Increase disease National launch in beginning 2007 Now present in all states Where Direct sales possibility more (urban area’s mostly) Easy available product (Good Transport facility ) At Varanasi 1 distributors (2 zone) and many dealers
M.B.A 50
SCOPE AND OBJECTIVE THE
OF
STUDY M.B.A 51
SCOPE OF THE STUDY This will help us to know the market tends demand and consumption patterns future prospectus in term of potential growth consumer test and buying behavior for the HUL product water purifier and other aspects related to channels and networks i.e. distribution. At the same time some bottlenecks and loopholes in the entire process could also be taken into consideration for their solution as well as betterments. In short following few aspects could be taken care of through this study:-
To study distribution network of HUL.
To identify the attributes those compel the dealers to select the product.. To study about the relationship and association of the household with the company.
To identify the dealer’s response towards brands they are dealing. To know about the credit policy of the company (motivational tools) Popularity of company product among customers.
M.B.A 52
Customer’s opinion towards packaging. To know about the awareness of drinking water used by various households.
OBJECTIVE OF THE STUDY The main objective of this project is to find, what are the steps Hindustan Unilever Ltd. is adapting to be market leader and to differentiate itself from its competitors. Most of the product of HUL comes in the category of convenience products. They are
frequently used and bought by the customers. There is large no. of players in the market, who are supplying similar product to the customers.
Now, customers have become smart, they have great knowledge of market, product and suppliers. So, they are looking for the product which is providing something extra. HUL has a wide range of product in FMCG sector, covering almost every needs and
wants of the customers. It has products for child, young & adult, male & female, etc. So, it has to differentiate its products taking into account the needs and demands of all the sectors of the society. Not, only product but it has to look upon the services and feed back from customers also. It should do something to give after sales service and collect feed back from the customers.
M.B.A 53
The basic objective of this project is as mentioned above to find ways so that HUL
remain market leader by considering all the needs & wants and fulfilling their demand.
M.B.A 54
RESEARCH METHODOLOGY It’s the way by which we collected data and used it to analysis the available fact for arriving at a particular results and suggestion. Basically there are two ways of collecting the data primary & secondary
RESEARCH DESIGN It consists of clean statement of the research problem procedures and information processing and analysis of data collected. It includes hypothesis also. I have used Descriptive Research which includes survey and fact-finding enquiries of different kinds. The main characteristics of this method are that the researchers have no control over the variables; he can only report what has happened or what is happening. The major purpose of descriptive research is description of the state of affairs as exists as present.
Problem to retailers with their respective FMCG Company.
Taste and preference of retailers and consumers towards the brand.
Strategy of different players in the market. M.B.A 55
Different schemes of different brands.
Descriptive research design: - alone with some exploratory research was applied which descriptive the state of affairs as they subsists. Descriptive research was used in the study of marketing strategies for the sale of company’s product also studying about the parameters which affect the competitiveness of the product.
Analytical research:- in this kind of research researcher uses facts or information which are already available and analysis these for critical and rational facts of the past and present tends in the demand and consumption, quality of product, packaging methods, supply and distribution and analyzed them for critical result and suggestion some recommendation.
SAMPLING PLAN Sampling methods: -
Snow ball sampling has been used for the purpose of those consumers
and prospective customers as it helped in knowing the no. of users of Pureit product and convenient sampling methods was used for distributers in distance place as accessibility had emerged as a problem in some cases. Sampling unit: - It defines the target population that will sample together for carrying out the analysis. Here it includes different areas and households. Sampling size: - For conducting the study distribution channel system of HUL some region like Vidhayadhar Nagar, Shastri Nagar was selected.
M.B.A 56
ASSUMPTION OF THE STUDY Questionnaire is distributed to different households in the different areas. Respondent have responded correctly. Information collected through various source is correct.
DATA ANALYSIS Data become useful only affect they are properly analyzed. Data analysis involves covering’s as series of recorded observation i.e. data into descriptive statement and inference about relationship. This task is helpful in identified the areas where the company each improve further collected data was analysis by the use of simple statistic tools like percentage and (univariate analysis) result have been represented by using bar chart columns and pie chart.
DATA COLLECTION This was done by using:A. Primary data. These are the fast hand information as observation in leads to collect through
surveying as interviewing using questionnaire and schedules. Questionnaire- it can be recognized as a schedule, interview from or measuring instrument is a formalized set of question for obtaining information from the repaired. It is widely used in consumer and industrial marketing research analysis.
M.B.A 57
B. Secondary data – these are the data which are already available in data which are already
available in usable forms various type secondary data used. Literature from various papers, journals, and magazines. E.g. News and Views and paper India. Annual report (previous record of the company.) Internet surfing. Other official sources.
RESEARCH APPROACH The research is based initially on an exploratory research & finally followed by descriptive research.
RESEARCH INSTRUMENTS The research instrument used in the study was predesigned up to designed questionnaire with closed ended multiple choice & open-ended questions.
QUESTIONNAIRE M.B.A 58
The questionnaire is by far the most common instrument in collecting primary data & the questionnaire consists of question presented to respondent for their answers. The questionnaire used a set of open-ended question.
SAMPLE SIZE Sample size is 100 households Type of research -
Descriptive research (it includes facts findings service)
Statistical tools -
Pie charts, bar diagrams etc.
Data collection -
Through questionnaire
UNIVERSE In the data of the sampling, large sample units are preferred to get the accurate outcome of the research. I took one places as a sample for survey i.e. Varanasi.
M.B.A 59
DATA ANALYSIS &
M.B.A 60
INTERPRETATIO N
Q1. How do you treat your drinking water? o Do nothing o Boiled water o Use electrical water purifier o Use non electrical water purifier
M.B.A 61
Interpretation:-After the survey of 100 households: Most of the peoples are using electric water purifiers This shows that people are more conscious about there health
Only a few portion of the households are not using any kind of water purifiers
Q2. Do you know that 80% of the diseases in our country are water bound? •
Yes
•
No
•
Not aware
M.B.A 62
Interpretation: - From the survey of 100 persons I found that •
75% of the people are aware that most of diseases are mainly due to the water.
•
17%ofthe peoples say that it is not because of water there family members gets ill.
•
8% of the people are not aware about water born diseases
Q3. While buying any water purifier what comes to your mind first? o Price M.B.A 63
o Health & Safety o Both
BuyingPreference
Both 15% Price 10% Health& Safety 75%
Interpretation-
M.B.A 64
After a survey, I found that 75% people preference health and safety in buying water purifier. Pureit offers an economical way of getting great tasting and 100 % safe drinking water. People are more conscious about they health. They mainly make use of water which is rich in minerals.
Q4. Which Companies purifier do you use and prefer to buy it? o Pure it o Aqua guard or Aqua sure o Kent water purifier o Philips o Usha Brita o Others
M.B.A 65
Water Purifierof differentCompanies 25
20
15
) (0 ld its n .fu o N
10
5
0
pureit
aquaguard
Kent
Philips
Usha
other
Water Purifier Comapnies
Interpretation- After a survey of 100 house holds, I have found that Pureit is the market leader. The sale of HUL water purifier is more then other purifier companies.
Aquaguard is the closest competitor of Pureit. Due to entrance of new companies like Kent, Philips and usha, HUL is facing a tough competition.
Q5. Comment on the price of your water purifier? o Affordable o High o Should be Revised M.B.A 66
Comments on Prices of water purifiers
Revised-17%
Affordable53% High-30%
Interpretation- after a survey, I found that price of water purifier is Affordable for 53% people, The price is high for 30% people. The water purifier Companies should reduce there prices in order to increase its market share
M.B.A 67
Q6.Do you know that boiled water is not necessarily safe water? o Yes o No
Numberof people usingwater purifier yes
no
38%
62% M.B.A 68
Interpretation - After a survey of about 100 house holds, I have found that 62% says that boil water is safe.
38% of the people have a opinion that boil water is safe only for few hours This shows that even after boiling water isnot safe for drinking purpose.
Q7. Have you recently come across any kind of marketing activities for
purifiers? o Kiosk o Demonstration o Direct Marketing o T V Commercial
M.B.A 69
MarketingActivity
Kiosk 10%
Demonstration
TV Commercial
Kiosk
Direct Marketing
Direct Marketing 15%
Demonstrat ion 5%
TV Commerci al 70%
Interpretation- After a survey I found that TV advertisement play main role in making awareness. 70% People come product knowledge through TV Commercial, 15% people come through direct marketing, 10 % People come through Kiosk and 5% people come demonstration marketing activity.
Q8. Do you get any type of after sale services from the Company? o Yes o No o Exceptional M.B.A 70
AfterSalesService 35 30 25 e lt 20 iT is x A 15
10
After Sales Service
5 0
Interpretation-after a survey, I found that 52% water purifier not dependable on company to timely service... People are in need those companies who can provide them suggestions and can help in
solving there problems regarding the product they are using. M.B.A 71
Q9. Criteria considered for Purchase? 1. Brand name 2. Technology 3. Aesthetics 4. Price
M.B.A 72
What is Important? 40 35 30
tle T is x A
25 20 15
What is Important ?
10 5 0 0
1
2
3
4
5
AxisTitle
Interpretation- In the survey of 100 people randomly, I found that 30 people gives importance to price and then after they consider the Brand name. The technology used must also be considered by the Companies in order to increase there
profits.
Q10.Where you did heard about the product? M.B.A 73
o TV commercial o Newspaper print ads o In shop branding o Friend’s references
M.B.A 74
Preference 40 35 30 25 20 15 10 5 0
Preference
Interpretation: from that above graph it is clear that most portion of the households purchase products of Companies by watching TV commercial advertisements. The Companies should be more focused on TV commercial Advertisements.
M.B.A 75
Q11. Where do you prefer to buy a water purifier from? o Retail Outlets o Franchisee dealers o Direct Marketing
M.B.A 76
45
45 40
35
35 30 25
20
20 15 10 5 0 RetailsOutlets Direct Marketing
Franchisee
Preffered Placesto buy M.B.A 77
Interpretation- in the survey I found that people like to purchase water purifier by direct marketing. In the survey I found that 45% people preferred direct marketing, 35% people preferred Retails outlets and 20% people preferred Franchisee to purchase the water purifier.
Q12. Problems regarding:• Colour • Smell •
Other visible impurities
Interpretation:
M.B.A 78
After the survey I found that only a few households are facing problems regarding smell. Color and other impurities.
FINDINGS & RECOMMENDATIONS FROM THE PROJECT As per the survey done following were the findings and recommendations of the survey:. o Customer service is something which company should pay more attention at. o
All models not available for display in retail outlets and also brochures should be made available.
o
Sales person at the front should have proper knowledge about the product.
o Should focus more on brand awareness. o TV advertisements can be renewed explaining the product feature and aggressive marketing will help the company. o Awareness of the product is less among the people. So, the company may take several steps to create such awareness regarding its values to the customers. o The company can adopt new strategies and policies to overcome the competition.
M.B.A 79
LIMITATIONS OF STUDY This survey report is also not free from limitations as usual. However the absence of such limitation would have improved the quality of report as given
> Limited time period restricted to go in for more details the period was very short to
survey such a large area. > Many respondents were not interested to give the required time for the questionnaire. > Respondents sometimes act artificially when know their information is noted down. > There was only some certain hours in a day in the idle hours in which the respondents was ready to talk. > This project was done on the basis of questionnaire through survey, so it may possible here that some of them might have not provided the correct information.
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 M.B.A 80
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 I found many Water purifiers in the market, which can be compared with Pureit. As a conclusion I found that particularly in my provided area Pureit is really doing well and its performance is on surprising level. During the fieldwork and after intensive study it was found that main competitor of Pure it is Aqua guard (Eureka forbs Ltd). So this is the comparison with other water purifier brands. According to our findings, we found that Pureit is the market leader followed by Hindustan Unilever Ltd.
M.B.A 81
ANNEXURE
M.B.A 82
QUESTIONNAIRE FOR PROSPECTIVE CUSTOMER Name: …………………………………….. Address:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Phone No.: - ---------------------------
1.
How do you treat your water drinking water? o Do nothing o Boiled water o Use electrical water purifier o Use non electrical water purifier
2.
Do you know that 80% of the diseases in our country are water bound? M.B.A 83
3.
•
Yes
•
No
•
Not aware
Which companies purifier do you use and prefer to buy it ? o Pure it o Aqua guard or Aqua sure o Kent water purifier o Philips o Usha Brita o Others
Q4.While buying any water purifier what comes to your mind first? o Price o Health & Safety o Both
M.B.A 84
Q5. Comment on the price of your water purifier? o Affordable o High o Should be Revised
Q6. Do you know that boiled water is not necessarily safe water? o Yes o No
Q7.Have you recently come across any kind of marketing activities for purifiers? o Kiosk o Demonstration o Direct Marketing M.B.A 85
Q8.Do you get any type of after sale services from the company ? o Yes o No o Exceptional
Q9. Criteria considered for Purchase? 1. Brand name 2. Technology 3. Aesthetics 4. Price
Q10.Where you did heard about the product? o TV commercial o Newspaper print ads o In shop branding o Friend’s references M.B.A 86
Q11. Where do you prefer to buy a water purifier from? o Retail Outlets o Franchisee dealers o Direct Marketing
Q12. Problems regarding:• Colour • Smell • Other visible impurities
DATE – SIGNATURE-
BIBLIOGRAPHY www.HUL.com www.golakindia.com www.icmrindia.org M.B.A 87
www.compareindia.com www.pureit.in www.customercomplaint.in
Books Referred Marketing Research by: N. K. Malhotra.
M.B.A 88
