A PROJECT REPORT

A Division of NIS Sparta Ltd., A Reliance – Anil Dhirubhai Ambani Group Company
                          (Academic Session 2008-2010)

                                   Submitted to

               In partial fulfillment of requirement for the degree of
                         Master of Business Administration
                Advance Diploma in Management & Applied Skills
                   Approved by Annamalai University,Chennai

                                                                     SUBMITTED BY

                                                                         MBA & ADMAS
                                                                         NIS Academy
Foremost of all, I express my sincere indebtedness to the Almighty for bestowing me
with favourable circumstance and keeping me in high spirits.

I am highly obliged and grateful to my Major Advisor Mr. Nishant Gaur (Director) and Miss. Mahima
Mathur (Center Manager), for their support, motivation and valuable guidance that helped me in the
complitaion of the project in a planned and a systematic manner.

A feeling of elation insist me on expressing my heartiest gratitude to Miss Shweta Solanki who give
me chance to do surveys from some outlets in Kota city and for being my project guide and sharing
their view on various topics and helped me a lot from the beginning up to the end of my report.
I would like to give special thanks to those persons who gave me information about HUL products
from their outlets and other teachers of my college for their willing support, valuable suggestion,
mature and moral advice during the itinerary.

With deepest sense of gratitude, I express my thanks and regards to my family, relatives
and friends for their close association, encouragement and support to take on this stupendous task.
I am highly privileged to thank all the people, directly and indirectly related and the respondents for
being cooperative and sparing a few moments from their busy schedule, without whose help this
project would not have proven meaningful.

1st YEAR
The M.B.A. curriculum has been designed to provide the future manager ample practical exposure to
the business world. The project program is necessary and essential part of the M.B.A. degree course. It
helps the student to gain the knowledge about various aspects of market, consumer and industry.

At the time of making this report I came to know that Fast Moving Consumer Goods popularly known
FMCG is as the name suggests is the most demanded products in the market. It includes every thing
from food items like flour, biscuits, ice cream, etc to body products soaps, face creams to cigarettes to
beverages, etc. Consumers need these things in their everyday life so they invests a good portion of
their income in these things.

There are so many companies which are dealing in FMCG products like HUL, Dabur, Cavin Care,
AMUL dealing in dairy products, etc. By the vary nature of the product the companies are seeing this
as a great source of income. As large number of companies are looking this sector as a profitable
venture, so for sustaining there position and gain new market they have to bring some thing unique in
there products or services to gain position in the market or to sustain there.

In this project my focus is on tracking down the changing requirements, preferences, needs of
customers and their changing perspective on the different products offered.

This report is a written account of what I learnt and experienced during my survey, I wish that, those
going through it, will not only find it readable but also get useful information.
 Acknowledgement
 Preface

 Introduction
 History
 Conversion of HLL in to HUL
 Company Profile
         Unit Office
 Organization Structure
 Segmentation
 Marketing Mix
 Major Competitors
 Questionnaire
 Conclusion
 Bibliography

FMCG major Hindustan Unilever Limited (HUL), formerly known as Hindustan Liver Limited,
employs 36,000 people, including over1,350 managers. It‟s one of the earliest MNCs to have entered
India. It was in the summer of 1888 that Unilever of England first marketed Sunlight soap in India.
This was followed by brands like Pears and Vim. Vanaspati was launched in 1918 and Dalda came to
the market in 1937. 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). These three companies merged to from HUL in November 1956.

Hindustan Unilever Limited is India‟s largest consumer products company and was formed in 1933
as Lever Brothers India Limited. It is currently headquartered in Mumbai, India and its 41,000
employees are headed by Harish Manwani, the non-executive chairman of the board. HUL is market
leader in Indian products such as tea, soaps, detergents, food items, beverages, personal care
products, as its products have become daily household name in India. The Anglo-Dutch company
Unilever owns a majority stake in Hindustan Unilever Limited.

The company was renamed in late 20 February 2007 “Hindustan Unilever Limited”. HUL‟s brands,
spread across 20 distinct consumer categories, touch the lives of two out of three Indians. They endow
the company with a scale of combined volumes of about 4 million tones and sales of Rs. 13,718
Hindustan Lever Limited (HLL) is India‟s largest Fast Moving Consumer Goods (FMCG) company.
HLL‟s brands like Foods and Home and Personal Care brands are manufactured over 40 factories
across India and 2,000 suppliers and associates were involved. 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

In the late19th 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. 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.

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. 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, 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".
                    CONVERSION OF HLL IN TO HUL

After 51 years of being known in India as Hindustan Lever Limited, the FMCG giant is going in for a
name change: HUL is what it will be known as henceforth Hindustan Unilever Limited. FMCG major
HLL has obtained approval on 20 february 2007, from the government for the change of the company
name to HUL.
            The company has unveiled its new corporate identity represented by a new logo under the
new name Hindustan Unilever Limited. This logo is symbolic of the company‟s mission of „Adding
Vitality to life‟. It comprises of 25 different icons representing the organization, its brands and the
idea of Vitality.
            The company believes that the new name provides the optimum balance between
maintaining the heritage of the Company and the synergies of global alignment with the corporate
name of Unilever. The company continues to retain 'Hindustan' as the first word in its name to reflect
its commitment to local economy, consumers, partners and employees, according to an official
statement issued by the company. The company continues to retain 'Hindustan' as the first word in its
name to reflect its commitment to local economy, consumers, partners and employees.
            Hindustan Lever Limited CEO Doug Baillie said, "The identity symbolises the benefits we
bring to our consumers and the communities we work in. Our mission is full of promise for the future,
opening up exciting opportunities where we have competitive advantage for developing our business
and our new identity will help us confidently position ourselves in every aspect of our business."
            The new name and the new logo will leverage the positioning, scale and synergy that
comes with being part of Unilever globally. It positions the organization on a global scale and through
the combination of retaining 'Hindustan' in the name brings the very best of local and global to the
forefront. This is really an opportunity, collectively as an organization, to renew and strengthen for
commitment to continue endeavor to earn the love and respect of India, by making a real difference to
every Indian.
                               COMPANY PROFILE

                   The company‟s mission is to “add Vitality to life” by meeting everyday needs for
nutrition, hygiene and personal care with brands that help people look good, feel good and get more
out of life. True to its mission of adding vitality to life, right from the morning cup of tea to the
brushing routine at bedtime, the company and its brands contribute in their own little ways to making
the lives of people easy, meaningful and happy. This mission of HUL‟s inspires over 15,000
employees with 35 power brands.

                 The company‟s vision is to sustainable, profitable growth, creating long-term value
for company‟s shareholders, their people and their business partners.

                 The company‟s objective is to earn the love and respect of India by making a real
difference to the lives of million Indians.

                 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 their
consumers through relentless pursuit of technological excellence, innovation and quality management
across their businesses, and offer superior quality products and services that are appropriate to the
various price points in the market as well as to their commitment to building shareholder value.

                 The registered office of HUL is in Mumbai, Maharashtra. The shares department is in
New Mumbai. The factories and plants of HUL is in Daman & Diu, Goa, Gujarat, Uttar Pradesh,
Himachal Pradesh, Dadra & Nagar Haveli, Punjab, Uttaranchal, Tamil Nadu, Kerala, Karnataka,
Pondicherry, Andhra Pradesh, West Bengal & Madhya Pradesh.

       NAME                  DESIGNATION
   Mr. Harish Manwani       Chairman
   Mr. Nitin Paranjpe       Managing Director & CEO
   Mr. D. Sundaram          Vice Chairman
   Mr. Gopal Vittal         Executive Director
   Mr. Dhaval Buch          Director
   Mr. D. S. Parekh         Director
   Mr. C. K. Prahalad       Director
   Mr. A Narayan            Director
   Mr. S Ramadorai           Director
   Mr. R. A. Mashelkar      Director

Harish Manwani (Chairman)                 Nitin Paranjpe(M.D & CEO)
It is a process of dividing a potential market in to distinct sub-market of consumers with common
needs and characteristics.
            As we know that HUL'S product is the most useful for every one. We use the product
from morning to till we sleep. It has many varieties of product which is used by every one from the
age of 5 to 60 years. But according to me teenagers (age 14 to 30) use the product the most. There are
three classes of segments (upper, middle and lower) according to the income. So HUL has all these
three segments because the price of its product varies. They have the price accordingly.

               HUL‟s product is daily use products. Every person uses these products. So the total
market is divided in to urban and rural segments.

               Every people use HUL‟s product in their life on daily basis, whether they are male or
female, they are kid or young or elder. They do not decide ant particular people or target customer.
                A service class person or businessmen also use these products in their daily life. A
person who belongs to different religion is using these products.

                 HUL‟s products are useful for everyone. Every people weather he/she belong for
lower class or middle or upper class. All people use these products morning to till night.

                 Due to high population of the India it is quit beneficial for a company to serve more
customers at a time and to acquire good sales figures as customers are more likely to be price and time
conscious. These are daily uses product, so the usages rate is very high.
                                  MARKETING MIX
Marketing mix describes the specific combination of marketing elements and used to achieve an
organization or individuals objectives and satisfy the target market.
               There are some elements of Marketing Mix-

            There are many product lines –

   1. Home and personal care
   A. Personal wash- Lux , Lifebuoy, Liril , Hamam, Dove , Breeze, Rexona , Pears
   B. Laundry-Surfexcel, Rin, Wheel
   C. Skin care- Fair and lovely, pond‟s, Vaseline, aviance
   D. Hair care- Sunsilk naturals, clinic
   E. Oral care- Pepsodent, closeup
   F. Deodorants- Axe, Rexona
   G. Colour cosmetics- Lakme
   H. Ayurvedic personal and health care- Ayush

   2. Foods
   A. Tea- Brooke bond, Lipton
   B. Coffee- Brooke bond bru
   C. Foods- Kissan, Annapurna, Knorr
   D. Ice cream- kwality wall‟s

            PRICE
A price is the flexible element than other. It is based on revenue. HUL‟s is target to the upper, middle
and lower class customer so the price of their products is not much high.
          They give discount also on their product. They also offer “Buy One Get One Free”.
The promotion methods used by the organization to promote its products awareness in the market are-
Advertisements- The ads are displayed in the newspaper with their present offers in running.
Electronic Media- Ads are displayed at different TV Channels, FM, and Radio to create awareness
among the people in Urban as well as in rural areas.
Seasonal Discount- Special offer schemes are offered to customer on the festival, occasion, to
promote sales.

    PLACE
It is important to marketing activities that make products available to consumer at right time and in a
convenient location. So these products are available at shopping mall, outlet or any grocery shop
which is near by home. A person can find these products anywhere.
                     MAJOR COMPITITORS

 Dabur
 Johnson & Johnon
 Cavin Care
 Procter & Gamble
 Britannia
 Gillette
 Jhandu
 Amul

Q. 1What is the market share of HUL?

   1) 40%                              2) 50%
   3) 70%                              4) 60%

Q. 2 How much is the consumption of HUL‟s product with respect to the products of
    other companies?

   1) 40%                              2) 50%
   3) 60%                              4) 70%

Q. 3 During purchase what is influence the customer?

   1) Price                            2) Quality
   3) Packaging                        4) Influence by others

Q. 4 Do you prefer any particular brand? (If „yes‟ which brand)

     1) Yes
     2) No

Q. 5 Do you think customers are satisfied with HUL‟s products?

     1) Yes
     2) No

Q. 6 When there are new brands, do you prefer to try new brand?

     1) Yes
     2) No

Q. 7 How often do the customers come in your shop?

    1) Everyday                        2) Weekly
    3) Monthly                         4) Occasionally
Q. 8 Do the market share or sell of HUL‟s products is effected at the time of occasions
     like Diwali and Holi?

    1) Yes
    2) No

Q. 9 Which technique you use to sell products?

    1) Display                         2) Give free coupon
    3) 20% free                        4) Buy 1 gets 1 free

Q. 10 Who comes mostly?

    1) Male
    2) Female
In recent years, the FMCG sector declined due to down trading. Also because of presence of large
number of companies trying to seize this opportunity, this force the old HLL for the change and thus,
their transformation has resulted in a new HUL, which has successfully faced this challenge and
reversed this trend. It has done so by substantially strengthening their brands and building capabilities.
This has already begun to yield benefits and they are returning to growth. Volume growth is being
followed by value growth, which in turn is bringing profit growth.

India is one of the most exciting markets offering great potential. Over the next 10 years, the per capita
income in India is likely to double. In FMCG, there is an opportunity to catalyze penetration, increase
usage, and upgrade consumers. As a result, the FMCG market is expected to grow to over Rs.100,000
crores from its current base of Rs.40,000 crores.

The new Hindustan Unilever sees an exciting opportunity for growth. They have 35 powerful brands
covering all segments, with leading market positions in most. Today, these are stronger and more
relevant to the consumer than ever. The people are energized by the scale of the opportunity and
determined to seize it. The scale of the business and operations gives them the resources needed. They
are delivering good services and the changes they brought in the products are well taken by the
customers, by this they are generating sustainable profitable growth.

Marketing Management   -   Philip Kotler
Internet               -   www.google.co.in
Website                -   www.hul.com
Visit                  -   visit in outlets, Kota city

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