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PREFACE
Fast moving consumer goods which is commonly known as (FMCG) is as the name
suggests is the most demanding product in the market .It includes every item include food
item like biscuits, ice-cream , etc . to body products soap , face cream to beverages etc .
Consumer needs these products in their everyday life so they invest a high proportion of
their income in FMCG product. With the availability of many companies this sector is one
of the most successful and quality product markets. H.U.L, P&G, COLGATE-
PALMOLIVE , I.T.C , These are some big giants in market .
As companies are looking this sector as a most profitable sector beside this they have to
concentrate more on quality and new product development. For sustaining in market these
companies should have to concentrate on something unique by which they can get
maximum profit from these sectors .and as we know
CREATIVITY IS THE MOTHER OF INVENTION .
IN THIS PROJECT MY FOCUS IS ON MODERN TREND IMPACT IN GENERAL
TREND MARKET .
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EXECUTIVE SUMMARY
TITLE -
The main objective of this project is to find out the potential market of H.U.L and the role
play of modern trend market and its importance in today market .As we know in this
scenario there is lots of competition present in this tough world and it is getting tough for
company to maintain their presence in market with brand loyalty .
With the changing of perception of customer the market is getting change day by day in
this fast life format customers are looking forward for big retail outlet where they can get
everything in a organized way and they get everything easily at one place with the less
time availability . according to one survey wall mart (u.s.a) having a biggest successfull
format and customers like to visit in these places for shoping .
Retail penetration is also a big issue for company because with the presence of lots of
MNC in India the market is going out very tough .and for the company who really want to
sustain in market should look for more quality conscious and loyal towards customer big
companies like dabur , Itc ,p&g ,.But with the wide range of variety in H.U.L and quality
some of products getting good response from customer these products are like lux ,
sunsilk , surf excel . so in this report we are concentrating on these issue .
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OBJECTIVE
The main objective of this project is to find the effect which is shown on general trade due
to modern trade . and to know about retail penetration in Udaipur .
RATIONAL OF STUDY -:
In this project our main focus is on knowing about the market of H.U.L .
For this study i have done following things
1. This study contains lots of research and surveys which i had done in market by
knowing about all facts and figures of company .
2. This study also contain to knowing about potential market and retail penetration of
H.U.L .
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OBJECTIVE SUMMARY
Objective of every company is very clear to capture great potential market.
In this project we are concentrate on the coming opportunities in Udaipur .with the
changing attitude of customers market is now really seems very tough and with the
presence of lots of competitors in market with the similar product . if company really want
to capture the big market size and coming opportunities so it is really important for
company to focus on some creativity and used different format from others which help
company to get maximum benefit in future .
Our objective is very clear to create satisfaction for our customers and to make our journey
more beautiful and exciting and for this we have to concentrate on our customers. This
project is basically related with the journey of market leader. As we know H.U.L deals in
every segment child, adult, old, man, women. H.U.L is having a great network and great
infrastructure in not only in India but in foreign countries also. In this project we are
focusing on coming opportunities for companies and how we can convert these
opportunities in success.
To know about the market condition and sale of company in Udaipur
To know about the customer expectations
To understand the actual scenario of modern and general market
To know about the customer perception towards H.U.L .
To understand the technique used by distribution network .
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Company facts
Company Name : Hindustan Unilever Limited (HUL) Industry :
Consumer Products / FMCG
Type of Company :Public Limited Company, Private Limited Company, Local Based
CompanyLocation : Lever House 165/166 Backbay Reclamation Mumbai 400020
*The company prefers to receive online application for speedier processing
.WebSite : http://www.hll.com
COMPANY PROFILE
Hindustan unilever limited is one of the most largest FMCG company in not only in India
but they have some strong impact in some part of Asia .Touching the lives of two out of
three Indians with over two distinct categories in home product ,personal wash , food &
beverages etc .they endow company with a scale of combined volume of about 4 million
tonnes and sales of RS.10000 CRORE.
H.U.L ia also one of the countrys largest exporter : it has been recognized as a golden
super star trading house by Government of India .
H.U.L is the Indias largest fast moving consumer goods company by market capitalization
and revenue. HUL mission is to add vitality to life. Through is presence in over 20
distinct categories in home & personal care product and food & beverages. the company
meets everyday for nutrion hygiene personal care with brands that help people feel good.
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Look good &get more out of life. strong support from unilever (HUL parent currently
holding 52%) also help the company with new product launches suiting the needs of
consumers. HUL deep root in local cultures and market around the world give it a strong
relationship with consumer and the foundation for its future growth.
HLL's brands like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk,
Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality
Wall's are household names across the country and span a host of categories, such as soaps,
detergents, personal products, tea, coffee, branded staples, ice cream and culinary products.
These products are manufactured over 40 factories across India and the associated
operations involve over 2,000 suppliers and associates. Hindustan Lever Limited's
distribution network comprises about 4,000 redistribution stockists, covering 6.3 million
retail outlets reaching the entire urban population, and about 250 million rural consumers.
HLL is also one of India's largest exporters. It has been recognised as a Golden Super Star
Trading House by the Government of India. Presently, HLL has over 16,000 employees
including over 1,200 managers. Its mission is to "add vitality to life." The Anglo-Dutch
company Unilever owns a majority stake in Hindustan Lever Limited.
In the late 19th and early 20th century Unilever used to export its products to India. This
process began in 1888 with the export of Sunlight soap, which was followed by Lifebuoy
in 1895 and other famous brands like Pears, Lux and Vim soon after. In 1931, Unilever set
up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by
Lever Brothers India Limited (1933) and United Traders Limited (1935). The three
companies were merged in November 1956 and the new entity that came into existence
after merger was called as Hindustan Lever Limited. HLL offered 10% of its equity to the
Indian public, and it was the first among the foreign subsidiaries to do so. Currently,
Unilever holds 51.55% equity in the company while the rest of the shareholding is
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distributed among about 380,000 individual shareholders and financial institutions.
Brooke Bond entered Indian market in 1900 and in 1903 it launched Red Label tea in the
country. In 1912, Brooke Bond & Co. India Limited was formed. Unilever acquired
Brooke Bond through an international acquisition. Similarly, Lipton's link with India date
back to 1898. Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited
was incorporated. Pond's (India) had been in Indian market since 1947. It joined the
Unilever ranks through an international acquisition of Chesebrough Pond's USA in 1986.
The liberalization of Indian economy in 1991 and subsequent removal of the regulatory
framework allowed HLL to explore every single product and opportunity segment, without
any constraints on production capacity. The 1990s witnessed a string of crucial mergers,
acquisitions and alliances. In 1992, the erstwhile Brooke Bond acquired Kothari General
Foods, with significant interests in Instant Coffee. In 1993, it acquired the Kissan business
from the UB Group and the Dollops Ice-cream business from Cadbury India. In one of the
most talked about events of India's corporate history, the erstwhile Tata Oil Mills
Company (TOMCO) merged with HLL, effective from April 1, 1993. In July 1993,
Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited
(BBLIL). Brooke Bond Lipton India Limited launched Wall's range of Frozen Desserts in
1994 and by the end of the year, HLL entered into a strategic alliance with the Kwality
Icecream Group families. BBLIL merged with HLL, with effect from January 1, 1996.
HLL has also set up a subsidiary in Nepal, Nepal Lever Limited (NLL). The NLL factory
manufactures HLL's products like Soaps, Detergents and Personal Products both for the
domestic market and exports to India. In January 2000, as part of its divestment strategy,
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the government decided to award 74 per cent equity in Modern Foods to HLL. In 2002,
HLL acquired the government's remaining stake in Modern Foods. In February 2007, the
company has been renamed to "Hindustan Unilever Limited" to strike the optimum balance
between maintaining the heritage of the Company and the future benefits and synergies of
global alignment with the corporate name of "Unilever".
Other Information
Hindustan Unilever Limited considers quality as one of the principal strategic objectives to
guarantee its growth and leadership in the markets in which it operates. The company is
committed to respond creatively and competitively to the changing needs and aspirations
of our consumers through relentless pursuit of technological excellence, innovation and
quality management across our businesses, and offer superior quality products and services
that are appropriate to the various price points in the market as well as to our commitment
to building shareholder value. The company recognises that its employees are the primary
source of success in its operations and is committed to training and providing them the
necessary tools and techniques as well as empowering them to ensure broad base
compliance of this policy in the organisation at all levels. The company is committed to
fulfill its legal and statutory obligations and international standards of product safety and
hygiene and will not knowingly sell product that is harmful to consumers or their
belongings. It will institute systems and measures to monitor compliance in order to meet
its responsibilities to consumers. The company will maintain an open communication
channel with its consumers and customers and will carefully monitor the feedback to
continuously improve its products and services and set quality standards to fulfill them.
The company is committed to extend its quality standards to its contract manufacturers,
key suppliers and service providers and by entering into alliances with them, to jointly
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improve the quality of its products and services. This policy is applicable to production
from its own facilities as well as to production that is outsourced. The company will
periodically review this quality policy for its effectiveness and consistency with business
objectives. The company delegates authority and responsibility for dissemination and
implementation of this policy to each Business and Unit Head.
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Timeline ( history of company )
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19th
cen
tur
y
Although Unilever wasn't formed until 1930, the companies that joined forces
to create the business we know today were already well established before the
start of the 20th century.
1900sUnilever's founding companies produced products made of oils and fats,
principally soap and margarine. At the beginning of the 20th century their
expansion nearly outstrips the supply of raw materials.
1910s Tough economic conditions and the First World War make trading difficult
for everyone, so many businesses form trade associations to protect their
shared interests.
1920sWith businesses expanding fast, companies set up negotiations intending to
stop others producing the same types of products. But instead they agree to
merge - and so Unilever is created.
1930sUnilever's first decade is no easy ride: it starts with the Great Depression and
ends with the Second World War. But while the business rationalises
operations, it also continues to diversify.
1940sUnilever's operations around the world begin to fragment, but the business
continues to expand further into the foods market and increase investment in
research and development.
1950sBusiness booms as new technology and the European Economic Community
lead to rising standards of living in the West, while new markets open up in
emerging economies around the globe.
1960sAs the world economy expands, so does Unilever and it sets about developing
new products, entering new markets and running a highly ambitious
acquisition programme.
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1970sHard economic conditions and high inflation make the 70s a tough time for
everyone, but things are particularly difficult in the fast-moving consumer
goods (FMCG) sector as the big retailers start to flex their muscles.
1980sUnilever is now one of the world's biggest companies, but takes the decision
to focus its portfolio, and rationalise its businesses to focus on core products
and brands.
1990sThe business expands into Central and Eastern Europe and further sharpens its
focus on fewer product categories, leading to the sale or withdrawal of two-
thirds of its brands.
The 21st
cen
tur
y
The decade starts with the launch of Path to Growth, a five-year strategic plan,
and in 2004 further sharpens its focus on the needs of 21st century consumers
with its Vitality mission.
Soaps and Detergents
This segment grew by 13.9% and 20.3% in CY07 and H1CY08 respectively constituting
44.3% of the total PBIT of the company. Fabric
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Wash has shown strong growth in this year with the market share moving up from 34.6%
in Q4CY06 to 38.3% in Q2CY08. Strong brand building exercise and intensive campaigns
(Daag aache hain for Surf and Smart Shrimati for Wheel) has helped it to regainits old
position. In the soaps segment, HUL continues to enjoy market share of 52.7%, which is
primarily due to its presence across all price points.(Dove Premium, Lux Mid market,
Breeze and Lifebuoy lower market).
Personal Products
This segment grew by 9.3% in CY07 (first three quarters were laggards but the fourth
quarter reported a strong growth on account of lower base effect and contribution from
new products) and constitutes 46% of the total PBIT of the company. This segment grew
by20.9% in H1CY08 and the new launches in the Ponds and Dove range contributed
strongly to the profitability of the segment.
The hair wash category is dominated by players like P&G, HUL and Cavinkare. P&G has
three main brands - Pantene, Head &Shoulders and Rejoice. CavinKare dominates the rural
pockets with Chik and Nyle. HUL is present at several price points. Clinic is amass-market
brand, Sunsilk is in the mid-price segment and Dove falls in the premium bracket. The
newly launched Dove range continues to garner market share and the market share of HUL
in the shampoo market has stood at 46.5% in JQ08. However, thecompetition has further
intensified with the entry of ITC with its brand Fiama di Wills. In the Skincare category,
HUL is present through its strong brands like Fair & Lovely, Lakme and Ponds. With a
market share of 54.4%, it continues to grow at a fast pace. Ponds Age Miracle (Premium
range) is slowly gaining acceptance and the offtake has improved.
HUL has a market share of 30% (JQ08) in the oral care market and is one of the
categories where it is lagging the market leader(Colgate). This category is expected to
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show modest growth with its strong brands (Close UP & Pepsodent). A new variant
Pepsodent
Kids was launched in the fourth quarter of CY07
Processed Foods
This is the emerging category in HULs portfolio and is the current focus area for the
company. The brands stable includes Annapurna(for atta and salt), Kissan (for jams,
squashes and ketchups), Knorr (for soups and cooking aids) and Modern (a bakery brand).
HUL isclearly keeping a low profile in the staples category, which is low margin business.
The company has a market share of 67.5% in Jamsand 30.3% share in Ketchups category.
Kissan Amaze has been test marketed in 3 southern states
Beverages
HUL has a market share of 23.2% in the tea category and 46.9% in the coffee category.
With the aggressive re launch of Brooke Bond,Taj Mahal and Taaza, the company has
been able to arrest the decline in its market share. A new concept tea Taj Mahal
DessertTeas has been added to the premium segment of tea portfoilio
HUL is the only player in India, which is fully geared up to address the entry-level as well
as mid and top end of the market. For Eg.Clinic is a mass-market brand, Sunsilk is in the
mid-price segment and Dove falls in the premium bracket. In the hair care segment,
toincrease its penetration in the entry level, it has introduced low priced SKU (Sachets) to
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drive volumes whereas to exploit the urban andaffluent class it has launched the Dove
range. We believe that HULs presence across categories has given it an edge, as it has
beenable to address all the stratas of consumers compared to its competitors who are
mostly in niche segments.
With the wide range of variety in market it has become now one of the most powerfull
brand in India . some product of H.U.L is very high profitable products . H.U.L is divided
in two division U1 and U2 .U2 is commonly known as LAKME . which is one of the most
powerfull cosmetic brand in Indian market . with the presence of wide range of variety in
lakme now its become the most renowned brand for womens.
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LAKME
U2 division of H.U.L and one of the most successful brand in India is now became quite
popular brand in cosmetic . lakme deals in every part like body lotion ,face wash ,nail paint
, kajal sticks , lipstick ,and many more, And the Ellite brand of this division is Elle 18 .
Lakme is most popular brand among middleclass and high class womens because of its
quality and variety it is very successful brand
As far as variety is considerd there is no doubt regarding product.but with the availability
of many competitors in market basically in general or kirana shop it is tough for lakme to
get maximum profitability in general market .
Culture and Values
Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene
and personal care with brands that help people feel good, look good and get more out of
life. Our deep roots in local cultures and markets around the world give us our strong
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relationship with consumers and are the foundation for our future growth. We will bring
our wealth of knowledge and international expertise to the service of local consumers - a
truly multi-local multinational. Our long-term success requires a total commitment to
exceptional standards of performance and productivity, to working together effectively,
and to a willingness to embrace new ideas and learn continuously. To succeed also
requires, we believe, the highest standards of corporate behaviour towards everyone we
work with, the communities we touch, and the environment on which we have an impact.
This is our road to sustainable, profitable growth, creating long-term value for our
shareholders, our people, and our business partners
RETAIL PENETRATION IN UDAIPUR
Retail penetration in Udaipur is possible and it will also help to generate profitability in
this market and the reason behind this is the brand presence and quality . As we know
H.U.L is also known for its strong distribution network and in Udaipur some product in
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H.U.L is having a great mindset in middleclass segment like laundry, personal wash, soaps
and beverages these product are commonly known for its loyal brand among customer .
H.U.L having a high investment in advertising and which makes brands more common and
renowned brand among people .If we talk about Udaipur market there is tough competition
between some brand like p&g , and ITC and some small companies like ayur , joy but as
we have wide range of variety and strong distribution network it is quite easy for company
to capture big market share in Udaipur. During survey in market we find that most of the
shops thinks that some of the company having good sales in Udaipur these companies
include Dabur, Joy, Itc , . if we talk about the home and personal care some brands are
more popular in Udaipur .e.g. sunsilk ,lux ,dove, surf excel , and brook bond is most
commonly used product with good sales and margins and shopkeepers are really happy
with the profit margins and scheme which is provided by company though some problems
comes in light regarding payment condition but beside this they feel proud with H.U.L .
Category All India Urban Rural
2.1 5.5 0.6
Toothpaste 48.6 74.9 37.6
Skin Cream 22 31.5 17.8
Shampoo 38 52.1 31.9
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Utensil Cleaner 28 59.9 14.6
Instant Coffee 6.6 15.5 2.8
Washing Powder 86.1 90.7 84.1
Detergent Bar 88.6 91.4 87.4
Toilet Soap 91.5 97.4 88.9
We believe with the rising consumerism, roll-out of the retail formats and increasing
penetration in the rural market, the growth momentum of HUL is expected to remain
strong in the coming quarters. There are certain categories like shampoo, skin cream and
detergents where it could increase its penetration in the rural areas with its vast distribution
reach.
Moreover, we believe that evolving modern trade channels could benefit HUL not just in
increasing its market share but also improving the product mix. HUL expects modern trade
to account for about 10% of the market by 2010 and 15% by 2015 from the current levels
of 5%.. The most interesting fact about modern trade is that the premium range witnesses
higher offtake leading to better margins and
organized retail has emerged as a competitive advantage for HUL.
HUL is investing in building capacities and improving processes for Modern Trade and has
entered into a JV with Smollons Holdings ofSouth Africa to increase its capabilities to
meet the merchandising demands in Modern Trade. The new company has been named as
Hindustan Unilever Field Services Private Limited (HUFS) and will work exclusively on
behalf of HUL in Modern Trade channel only.
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The operations will begin with the existing Modern Trade in-store execution team of HUL
moving into HUFS. Smollan Holdings is one of the leading in-store execution and field
services companies internationally. It has leading edge capabilities in servicing Modern
Trade focused on shelf filling, logistics for merchandising materials and in store execution
Customer perception
FAIR AND LOVELY
One of the major brand of H.U.L in skin segment . with the presence of wide range in fair
and lovely it has become the famous brand among middle class . but due to the presence
of some competitors the sale of fair and lovely comes down . many shopkeepers feels that
the sale is not such good as before with the strong distribution network of competitors the
availability of skin cream increased day by day . fair and lovely have a very great impact
among middleclass women but the product which was recently introduced by fair and
lovely for men is not so much popular . and the reason behind this is the perception of
middle class people towards fair and lovely .that this product belong to women as compare
to men . As per the fact which we get by survey is the sale of this product is seasonal now
it become more popular in summer as compare to winter . and the strong competitor of this
product is fair one by shehnaz Husain , fair and handsome by Emami and Boro plus . these
are some product which already prove their presence in market .
LUX -
Lux is one of the most success full beauty bar for H.U.L. Lux having a great impact in not
only urban but in rural market lux which is commonly known as film star soap . but we
have to consider this fact that the sale of this product also faces a lots of problem due to
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competitors product like Dyna , Gorej no 1 , Cinthol etc , in this scenario the perception
of customer is changed day by day with the presence of global market in India there is
easy availability of lots of foreign soaps easily which effect lux and many important brand
of H.U.L . for increase of sales we have to focus on customer relationship which is really
very important for any product we have to reach our customers and understand our
customers demands by some research . lux is one of the highest profitable brand in soaps
category . lux having a lots of variety like milk , chocolates, fruits etc . for this brand we
can say now we have to change our approach and focus on local market by giving lots of
offers and varieties . lux having a good sale on some stores but having also low sales in
some stores so we have to focus on that store also where the sale of product falls down .
Surf excel -
Surf excel having good sale in almost everywhere or we can say surf excel is one of the
key product for H.U.L . Ariel which is the brand of P&G also having a good share in
market are giving strong competition to surf excel . but beside this by interaction with
customer the major problem which comes in mind is the price . 80 rs per kg and whereas
some product is much cheeper than surf excel like Nirma , double dog (more) etc these
products are also capable of producing good quality in Indian market and today the
customer is more price conscious . so we have to focus on price also which is really very
important for this product .with the present of sachet sceme there is comptetion between
surf excel and ariel whose having a same rate . but if we talk about tide it cost rupees 1 . as
we talk about Indian market we have to focus more on price . because price and quality are
two more important aspect for good sale and surf excel is a good brand with best quality
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but due to high cost the sale is not so up to the mark . because this product is still far away
from middle class so by focusing on price we can create opportunity to get the huge market
in middle class segment .
Sunsilk
Sunsilk faces a lot of compteion in Indian market with the presence of lots of companies
in market the major products of H.u.l. is sunsilk shampoo whic h have good sales in
urban & rular market . The major competitors of this product is vatika
shampoo(dabur),vivel(Itc),head and shoulder(p&g) This product is easy available in any
shop. Compay should focus on expectation of customers demand and launched the new
product time to time. Sunsilk is one of the successfull product in market having good
impact in womens .mostly women who belongs from middle class consume this product
sunsilk is easily available in sachet . which also have good sale most of the shopkeepers
feels that sunsilk is a type of product which is brand loyal product for most womens .
COMPTETION -:
NO TASK IS SO EASY WHAT WE FEEL ITS VERY IMPORTANT FOR EVERY
COMPANY TO PUT 200% WITH THE PRESENCE OF MANY COMPTETIORS IN
MARKET IT IS VERY DIFFICULT FOR COMPANY TO SUSTAIN IN MARKET
THESE ARE SOME COMPANYS WHO PLAY A BIG ROLE IN MARKET .
DABUR
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Dabur is commonly deal with food product but also play a role in shampoo and oral care .
dabour is vatika ,meswak are the two most successfull product of dabur . which have good
increase in sales and having popular brand among customers . sales of dabour increases
approx 20 % in Udaipur according to some shopkeeper and the reason behind this is dabur
is also known as market leader in health care product so it most renowned product in
market and customers are more loyal towards this product both in shampoo and oral care
are basically comes in herbal .
P&G
P&G commonly known as procter and gamble one of the big giant in not only in india but
in world having good brand name . P&G have wide range of product as it is recognize as
MNC .P&G having a great impact in urban market product like Ariel , head & shoulder,
tide . according to some shopkeepers p&g having average sale in Udaipur . the strong point
of p&g is its payment condition and distribution network .
ITC
ITC is well known brand with having great varieties and network in india . ITC with
over 21,000 employees and US $ 4.75 billion and ranked amongst 3 in india
Rural Initiatives
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ITC's Agri-Business is India's second largest exporter of agricultural products. ITC is one
of the India's biggest foreign exchange earners (US $ 2 billion in the last decade). The
Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its
competitiveness by empowering Indian farmers through the power of the Internet. This
transformational strategy, which has already become the subject matter of a case study at
Harvard Business School, is expected to progressively create for ITC a huge rural
distribution infrastructure, significantly enhancing the Company's marketing reach.Some
of brands in ITC having a great market now recently like fiama di wills ,vivel, In both soap
, and hair care segment .but if we talk on the basis of Udaipur sale is not so effective and
aggressive which will effect on H.U.L .
MODERN TRADE IMPACT ON GENERAL TRADE
Modern trend is one of the fastest growing trend in big cities because this trend is much
convenient for customer to visit at one place and purchase product with the presence of
wide range of variety . the main reason behind the success of this trend in big cites is
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availability of all product in one place big bazaar , vishal mega mart ,v-mart is the example
of this trend now these groups are looking forward to cover B grade cities and now in
future it seems like in Udaipur there is huge chances of coming up of big malls and
Moreover, we believe that evolving modern trade channels could benefit HUL not just in
increasing its market share but also improvingthe product mix. HUL expects modern trade
to account for about 10% of the market by 2010 and 15% by 2015 from the current levels
of 5%.. The most interesting fact about modern trade is that the premium range witnesses
higher offtake leading to better margins and
organized retail has emerged as a competitive advantage for HUL.
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HUL is investing in building capacities and improving processes for Modern Trade and has
entered into a JV with Smollons Holdings of South Africa to increase its capabilities to
meet the merchandising demands in Modern Trade. The new company has been named as
Hindustan Unilever Field Services Private Limited (HUFS) and will work exclusively on
behalf of HUL in Modern Trade channel only.
The operations will begin with the existing Modern Trade in-store execution team of HUL
moving into HUFS. Smollan Holdings is one of
The leading in-store execution and field services companies internationally. It has leading
edge capabilities in servicing Modern Trade
focused on shelf filling, logistics for merchandising materials and in store execution.
In Udaipur modern trend play a huge impact over general trading because as we know
.udaipur is well known city for tourism. If we talk about the income standard of people
here we can say this city have more middleclass segment which means people are capable
to purchase product easily . malls and modern trend is the place where people can easily
spend some time for entertainment like what happen in metro citys.and the sale of product
also comes high as compare to small store because with the presence of wide range of
variety in market . customers have more variety , more choices . like the source which we
get from vishal mega mart in Udaipur they have highest sale approx( 3,00,000) rs for a
month for particular H.U.L .
The only worry for company in modern trend is competition like presence of Dabour, ITC,
P&G, and Ayur. And some of these companies are working in a very low cost like ayur,
joy.In big market it is not possible for every company to make their huge impact in
customer mind because customer are more brand conscious and more quality concerned .
India is currently the 12th largest consumer market in the world .Indias consumption will
quadruple over the next 20 years.
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Penetration level as well as per capita consumption in most product categories like jams
,toothpaste ,skin care ,hair wash etc in india is low indicating the untapped market
potential burgeoning Indian population ,particularly the middle class and rural segment
presented an opportunity to makers of branded products to convert consumer of unbranded
products to branded products . Building brand loyalty is also one of the key factor for
FMCG.
Segment market size (rs) penetration(%)
Oral care 31 49
Skin care 26 22
Hair care 14 38
Deodorant 2.5 8
Soap 55 58
Detergents 60 37
Tea 35 82
Coffee 4 7
SOURCE :INDUSTRY KRC
The complete shopping experiences of people is undergoing a sea change at the organized
retail chain its contributing around 5% (approx) and wheareas in traditional its about 95 %
(approx) .because of high cost indulge in organized modern trend the margin is less in
initial but in metro its more popular and now these concepts are commonly used by small
cities because the future of modern trend is much better than general trend
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RESEARCH METHDOLOGY -:
Due to the presence of large number of FMCG companies in market ,to find the defining
strategies used ,The methodology used is interview and survey method .
DATA COLECTION METHOD -:
For this research primary and seconadary both data was collected .
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Primary data was collected by questionnaire and on one and one interview was considerd
with customer , shopkeepers ,distributors and suppliers of company .
Secondary data was collected with the help of internet , books and magazines .
METHDOLOGY FOR RESEARCH -:
INFORMAL INVESTIGATION -:
Visit to the shop owners ,talked to the distributors of the company and to the customer
who visit to both general and modern market.
EXTERNAL INVESTIGATION -:
Understanding customer problem
Understanding market structure
SITUATIONAL ANALYSIS -:
Taste and preferences
Needs and income
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Major competitors
ITC
DABUR
PROCTAR AND GAMBLE
SAMPLING TECNIQUE -:
For my sampling . I used cluster sampling technique . I selected 50
people around the area and interviewed them according to the questionnaire and try to
know about their taste and preferences and their purchasing habbit and whether they are
satisfied with the brand or not are they brand loyal or not .I also visit to many shops and
retails malls to know about their expectations and what technique they are using to sustain
their customer in this tough competition scenario
RESEARCH PROBLEM
The major problem is change in taste and preferences of customer
Changing to market trend
Presence of large number of competitors in market
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SCOPE OF RESEARCH
This project has been limited to Udaipur and some parts of Rajasthan only
The questionnaire was designed by keeping all market in mind all the objective was clear
and focused on the benefit for the company. Information always play a very important role
for any company effective information is like a medicine for company .
LIMITATIONS OF PROJECT -:
1. This project cannot be done on national level . so the figure used in this project is
basically limited with Udaipur only .
2. The figure which i get from market is not going to be same always during season time
due to increase in demand the figure get affected easily and some product which is
mainly seasonal get good sales .
Limitation by time
1. Due to availability of short time period it was not possible for me to cover all big
market .
2. Due to less time . i was not able to cover all rural market but i try my best to get
good research work .
3. Due to busy schedule of my seniors and less availability of time they were not able to
solve my every problem .
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QUESTIONNAIRE
Q.1 According to you which brand is more popular and reliable for you ?
a) H.U.L b) I.T.C c) P&G d) dabour
Q.2 Are you happy with the quality of products provided by H.U.L ?
a) yes b) no c) cant say
Q.3According to you which market is more convenient to you for shopping ?
a) modern market b) general market c) both
Q.4 According to you among these who is the most powerfull competitor for H.U.L ?
a) DABOUR b) P&G c) COLGATE d) I.T.C
Q.5 What is the main source of your information regarding product ?
a) Advertisement b)magazines c)friends
Q.6 Are you easily get the H.U.L product in market ?
a) yes b) no c) not always
Q.7 According to you where you get right kind of information regarding product in
market ?
a) shoping malls b) general stores c) none of them
Q.8 What is your perception towards H.U.L ?
a) positive b) negative c) mixed
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Q.9 Are you easily get all details and schemes by your shopkeeper and malls ?
a) yes b) no c) not always
Q.10 Are you really a loyal customer for H.U.L ?
a) yes b) no c) not always
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DATA ANALYSIS
1. H.U.L is one of the market leader in india clears that they are going to capture huge
potential market in not only urban but in rural market also . in the present scenario i
get a very mixed response from consumers but its clearly understandable that
H.U.L is making a huge impact on customers besides lots of competition in market
like big companies I.T.C , P&G AND DABUR still consumer feels that H.U.L is
best .
2. Quality is the main base for any company because without quality no one can
survive in market and in this question i get all the answers of my questions .due to
the huge variety of products and providing of better quality of products customers
feels that H.U.L is making a good range and quality with compare to other
companies .
3. Now the world has changed and everything is seems fast and buzy . due to less
availability of time everyone think that they utilize their time in a best manner with
the coming of modern trade market in india the market status is really changed and
changed with a drastic variations of figures .Wheares high class people spend more
time in malls and poor people still like general market . most of the people like to
go for shopping in malls because their they get all categories of items at one place
and malls people dont like to purchase in a small quantity .
4. As we know india has the biggest market with compare to some parts of other
asian countries so due to heavy population its seems easy for many companies to
come and set their market among Indians but in reality its really different now the
time has change people are more conscious about the product and its quality and
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brand image . with the availability of many products the competition is also big .for
this answer i visit to one reliance fresh shop in Udaipur and i asked to the manager
regarding competition i get very surprising answers . He told me that in some
products their is no comptetion of H.U.L with other companies customer purchase
products with only the name of brand because they know the market status of
H.U.L .
5. Advertisement of product is really very important for sustaining brand image in
market .In todays scenario company pay a huge amount for endorsement of
product they spend so much on advertisement they higher professionals and brand
ambassador .most of the people get information through televisions and magazines
but according to the survey the result which i get most of times people get
information through television .this shows that still t.v is best source for
information .
6. The role of distribution network is really very important to provide product at
right time at right place .H.U.L having such a strong distribution network not even
in urban but in rural market also .it is really very important for company to provide
better service and choose better distribution network . Most of the people feels that
they easily get product of H.U.L in market .
7. Most of the people think that H.U.L is much costly than other brand .H.U.L having
three segment U1,U2,U3 .and if we talk about U2 segment which is lakme its really
costly for middle class and some product in U1 is also very costly like surf excel .
as we know H.U.L have highest share in cosmetic market and lakme is much costly
brand for middle class wheareas surf excel also very costly then other competitors .
During selling most of the people have complaint me regarding cost which is
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really seems very big problem for company .
8. Customers are really happy with H.U.L. they have good perception toward product
and quality . most of people think that they have good perception in mind for H.U.L
and the reason for this image is variety and availability of product in market .
9. Company introduce lots of schemes for customers and some time these schemes are
limited to only shopkeepers . Customers are not able to enjoy these schemes and i
also get mixed response from customers regarding products schemes mainly people
get schemes in modern trade market only but not in general market .
10. Loyal customer is like a asset for company .and at the end i can proudly say that
why H.U.L is market leader just because H.U.L is able to win the heart of their
customer and most of the peoples are loyal towards their brand and they like product
of H.U.L .
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Conclusion
On the basis of above facts and figures which i get in my research through primary data
and secondary data i strongly feel that H.U.L is now become the heart product of
Udaipur .the market size and share is so high and there is huge chances of getting
maximum profit from Udaipur with the help of effective team work .some of product are
most successfull and now became the need of Udaipur city . only on which we have to
focus more is on our network , stocks , and delivery time .HUL which have the set and
defined add vitality to life and by focusing on this mission we can make every task more
successful for company . there is huge chances of generating profitability in Udaipur by
the help of modern trend because in this trend there is fast consumption and high demand
and retail penetration in Udaipur because our product are more quality product then our
competitors .as we know H.U.L is now known for a brand loyalty .In the coming days
company who have strong r&d and distribution network its seems easy to win the heart of
customer in Udaipur .and at the end i love to say that its really a honour for me to work
with H.U.L the name speaks itself why H.U.L is market leader in fmcg sector .
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BIBLIOGRAPHY
BOOKS
BUSINESS WORLD
OUTLOOK
WEBSITES
www.hll.com
www.marketwatch.com
www.fmcg.com
RETAIL OUTLETS
VISHAL MEGA MART (UDAIPUR)
V-MART (UDAIPUR)
ARORAS STORES ( UDAIPUR)
BOMBAY FANCY (UDAIPUR)
TIP TOP (UDAIPUR)
http://www.hll.com/http://www.marketwatch.com/http://www.fmcg.com/http://www.hll.com/http://www.marketwatch.com/http://www.fmcg.com/