Documentos de Académico
Documentos de Profesional
Documentos de Cultura
PROJECT REPORT
ON
CUSTOMER PREFERENCE FOR HUL IN RURAL INDIA
By
SHILPA JETHANI
MBA/14/2622
Submitted to
RAJASTHAN TECHNICAL UNIVERSITY
In partial fulfillment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Under the guidance of
INTERNAL GUIDE
EXTERNAL GUIDE
Mr.
Naveen Sharma
Department of MBA
INTERNATIONAL SCHOOL OF INFORMATICS &
MANAGEMENT, JAIPUR
(2014-2016)
DECLARATION
I SHILPA JETHANI hereby declare that the project report entitled CUSTOMER
PREFERENCE FOR HUL IN RURAL INDIA with reference to HUL prepared by me under
the guidance of Dr. Gargi Sharma faculty of MBA Department, INTERNATIONAL SCHOOL
OF INFORMATICS & MANAGEMENT, JAIPUR And External assistance by Mr. Naveen
Sharma
I also declare that this project work is towards the partial fulfillment of the university regulations
for the award of degree of Master of business administration by Rajasthan Technical University,
Kota
I further declare that this project is based on the original study under taken by me and has not
been submitted for the award of any degree /diploma from any other university/Institution is a
bonafide record of work done by me and that it has not previously formed the basis for the award
to me for any degree/diploma, associate ship, fellowship or her
institute/society.
Place: Jaipur
student
Date
Signature of the
ACKNOWLEDGEMENT
The project comes out to be a great source of learning and experience .lot of effort has been put
by various people to make this project a success .this has gratly enhance my knowledge about the
vast field of CUSTOMER PREFERENCE FOR HUL IN RURAL INDIA
Then I express my sincere gratitude and thanks to Dr. Gargi Sharma for his
inspiration and helpful attitude.
SHILPA JETHANI
EXECUTIVE SUMMARY
The main objective of the project is to get the full knowledge of the products of the HUL
and what are they doing to get the customer loyalty, to maintain their market. This is
also to find the preferences of customer and there market knowledge and product
information, information about the presence of the rival of HUL and all the other options
they have in the market. What are the techniques they adopt to know about the
preferences and changing needs of the customer?
HUL are also looking to tap the market in rural sector, so they also taking into
consideration the needs and wants of the people there. They are also studying the
consumption habits of the rural people. Like most of them are daily wage earners or
small peasants, so they are studying the buying patterns of them also.
In country like India, where the 70% of the people live in rural area, the rural market
holds a lot of marketing potential. There is a wide spread difference in the standard of
living between urban and rural India. In order to launch products and develop
advertising for rural market there is a need to understand both the rural context and also
the consumer very well. Promotion of brands in rural markets requires the special
measures. Due to the social and backward condition the personal selling efforts have a
challenging role to play in this regard. The word of mouth is an important message
carrier in rural areas. Infect the opinion leaders are the most influencing part of
promotion strategy of rural promotion efforts. The experience of agricultural input
industry can act as a guideline for the marketing efforts of consumer durable and nondurable companies. Relevance of Mass Media is also a very important factor. The
strong Indian brands have strong brand equity, consumer demand-pull and efficient and
dedicated dealer network which have been created over a period of time. The rural
market has a grip of strong country shops, which affect the sale of various products in
rural market. The companies are trying to trigger growth in rural areas.
TABLE OF CONTENTS
I S. NO.
Descriptions
Page No.
1.
7-12
2.
13-28
3.
Research Methodology
29-32
N
T
R
O
U
C
33-39
5.
40-56
6.
SWOT Analysis
57-58
7.
Conclusion
59
8.
60
9.
Appendix
61-64
BIBLIOGRAPHY
65
10.
OF INDUSTRY PROFILE
Rural relation an market base company who working in rural market. Who helps
companies to provide helps for penetrate and develop their business circle and make
5
brand relationship with customer in rural market. many other companies working for pan
network in rural market and helps companies to make rural market more loyal to that
companiesnd helps by market research in rural market for helps them to increase in
market share.
Why Direct Marketing and relationship marketing?
Reaches the consumer individually
The literacy level being low this is the best medium to reach
Personalized communication
Can be customized
Mainly market research companies work for corporate prospective and social
prospective
Sampling activities in villages
Social-led activities
Identifying franchisees
Lead-generation activities
Customer profiling activity
Information-led services on sms
Organize training programs
Direct mailing activities
Media, PR and on-ground support
Corporate Social Responsibility (CSR)
6
Exhibitions
There are many companies who are doing market research in rural market
1) Rural relation
2) Ndc india
3) Anugrah Madison
4) MART
5) Sampark public relation,
6) Ogilvy Activation
7) Linterland
8) RC&M
9) Impact Communications
10)Kripa Outdoor Publicity
11) Indian Agribusiness Systems
12)Rural Eight.
2) Ndc India working in rural India for helps for Rural branding
Rural market research
Rural communication campaign
Rural events
Rural DM campaigns
Db creation and Management
3) Mart
Established in 1993, MART is a pioneer in the rural domain and over the years has
emerged as the Leading Rural Consultancy Organization.
For both development and corporate sectors, rural marketing was little more than a
black box. This huge knowledge gap motivated our founder to create MART in the year
1993. The aim was to equip both players with relevant rural solutions.
They started by providing handholding services to NGOs and development projects.
Today, our range of services includes research, strategy formulation, implementation
and capacity building, which has helped us emerge as the only one-stop rural solutions
provider of its kind not just in the country but in the subcontinent.
What Mart do
MARTs expertise lies in its understanding of the Indian rural way of life. An
understanding that has been built over years of interaction and engagement with rural
India. An understanding that is constantly being revitalized and renewed as Rural India
evolves in an ever-so-dynamic manner. Today, Rural India is as much about unchanging
traditions as it is about changing lifestyles and evolving value systems. In such a
dynamic environment, our clients have come to rely on us to provide them with
accurate, insightful and contemporary knowledge. They place their trust in us and
partner us in their search for relevant solutions.
are headed by Harish Manwani, the non-executive chairman of the board. HUL is the
market leader in Indian products such as tea, soaps, detergents, as its products have
become daily household name in India. The Anglo-Dutch company Unilever owns a
majority stake in Hindustan Unilever Limited.
The company was renamed in late June 2007 as "Hindustan Unilever Limited".
Some of its brands include Kwality Wall's ice cream, Lifebuoy, Lux, Breeze, Liril,
Rexona, Hamam, Moti soaps, Pureit Water Purifier, Lipton tea, Brooke Bond tea, Bru
Coffee, Pepsodent and Close Up toothpaste and brushes, and Surf, Rin and Wheel
laundry detergents, Kissan squashes and jams, Annapurna salt and atta, Pond's talcs
and creams, Vaseline lotions, Fair & Lovely creams, Lakme beauty products, Clinic
Plus, Clinic All Clear, Sunsilk and Dove shampoos, Vim dish wash, Ala bleach and
Domexdisinfectant,Rexona,Modern Bread and Axe deospray.HUL has produced many
business leaders for corporate India. It is referred to as a CEO Factory' in the Indian
press for the same reasons. Its leadership building potential was recognized when it
was ranked 4th in the HewiitGlobal Leadership Survey 2007 with only GE, P&G and
Nokia ranking ahead of HUL in the ability to produce leaders with such regularity
Today, HUL is one of Indias largest exporters of branded Fast Moving Consumer
Goods. It has been recognized by the Government of India as a Golden Super Star
Trading House.
Over time HUL has developed into a viable & competitive sourcing base for Unilever
world wide in Home and Personal Care & Foods & Beverages category of products.
HUL is also a global marketing arm for select licensed Unilever brands and also works
on building categories with core country advantage such as branded basmati rice.
HUL Exports offers high level of service with flexibility and responsiveness thorough out
the supply chain. It has a dedicated organization structure to support this endeavor and
this has helped in growth of these businesses in particular. Intrinsic cost
competitiveness in the end to end Supply chain with appropriate technology and
competitive capital investment operations while delivering best in class quality enables
9
HUL to position itself as a key sourcing hub for Unilever and also become a preferred
partner for Global customers in categories we operate.
HULs key focus in the exports business is on two broad categories. It is a sourcing
base for Unilever brands in Home & Personal Care (HPC) and Food and Beverages
(F&B) for supplies to other Unilever companies. It also focuses on becoming a preferred
supplier to both non-Unilever and Unilever clients in three categories in which India, as
a country, has competitive advantage Branded Rice, Marine Products and Castor and
its Derivatives. HUL enjoys international recognition within Unilever and outside for its
quality, reliability and speed of customer service.
HUL's Exports geography comprises, at present, countries in Europe, Asia, Middle East,
Africa, Australia, and North America etc.
relations have more than 14 years of experience. Rural relation building relationships in
rural India with key influencers.
PRADEEP LOKHANDE (DIRECTOR) says that
Some dreams are big. Only mine was a far simpler one and yet a mission of
sorts. I quite simply wanted to reach out to rural India and contribute to its development.
I set out on this mission 15 years back.
I embarked on a journey of discovery, to find out what makes the most of our India.
Though I myself hail from a village, I knew that deep down theres more to life than what
I had seen or lived myself. I wanted to know the essence of the various traditions,
cultures and soak in its thinking. It was a journey of 40,000 villages of which I had
personally visited 4000 of them across the country. I tried to understand rural Indias
administration methodologies, markets or the bazaar-haat systems and the process of
the education system.
In the process of my journey, I established direct contact with opinion makers in villages
and started recording obscure details of the local economy. And in 1996, I made my first
customers, Tata Tea and Parle to delve in the data that I had collected. Since then there
has been no turning back.
One key area of my interest was Information Technology. Many world names have taken
various steps to take the age information to rural India.
Yet I thought there could be more concrete ways to do more in this area. The intention
was not to make computer literates of people but at least to get them to touch, feel and
try computers.
I began to install used computers in villages, particularly in secondary schools, where
the interest and inquisitive levels were very high. When I personally could not find the
means and finance to progress, I appealed to individuals, organizations and corporate
to contribute used machines.
Today I have succeeded in installing 600 computers across 540 villages.
11
This inspired me to initiate yet another movement called the Non-Resident Villagers.
Rural relation NETWORK PAN-India-
SOCIAL PROSPACTIVE
Search for your village and notice the changes there in the Changing villages section.
View video recordings to see the places of action and meet professionals in villages in
happening places.
CORPORATIVE PROSPACTIVE
Check out our work for clients like Reliance Money, HLL, P&G, ICICI Bank, Telco,
HPCL, and many more, learn about our latest offerings The Rural Barometer (TRB)
(first-hand
division) ...more
12
'It's your own brand showcase to rural India.' Welcome to the glimpses on availability,
distribution, shelving, servicing and reaction on various other brands present in rural
India.
Market visits particularly to rural areas have become an absolute essentiality in the
world of sales and marketing. Visits like these mean planning, travel time and cost. It is
much more than a mere market visit. In fact this page will take you way beyond the
market visit. It is a comprehensive tour of the village youre looking to visit on your
desktop through streaming videos.
The rural barometer is Indias first subscription-based information service which will help
you to explore rural India. This is possible through video-recordings made by our village
developers TM. The rural barometer will act as your Knowledge Partner and help you
gain valuable insights. Simultaneously it lets you learn about other leading players in
your segment. There are different attractive packages available on The Rural
Barometer, categories of which are listed below.
Distribution
Product Availability.
Reach of product.
Procurement Source.
Promotion
Pop/pos
Innovation
Recall of promotion
14
Rural champion
Another social initiative from rural relations is rural champions - identifying and
recognizing individuals and groups of people who are tirelessly working for their village
or bringing about a change despite limitations. They are the motivated, self-starters who
need to be encouraged.
You can hear them and see them through the many video recordings on our site,
covering various contributions made by them. From solution for water problem to
building awareness on Right to Information to adopting eco friendly methods of farming
or even in eradication of the perennial alcohol problem, their stories are unique and
inspiring. You can contact them and support them directly or through us.
Gyan-key
Motivating students in villages of India to develop reading and learning...
Gyan-Key is working towards opening a library in a secondary school in key villages
across states of India. It is a unique concept a library of the students, for the students
and by the students.
The library will be run by one of the girls (Gyan-Key monitor) from that village studying
in class VI. Each library to start with will have minimum 150-200 books in that local
language covering various subjects. To instill a sense of ownership, students will be
encouraged to donate books, (regardless of their value) for their library on their
birthday. This will create a feeling of belonging.
You too can participate in our movement. At just Rs. 5000/- you have a chance to
contribute for a worthy cause - provide an opportunity to instill learning to approx 150200 students of 8-10 villages. To build transparency, the money will be collected in the
form of cheque drawn directly in favor of the publisher. We will provide you with letters
from the schools and some reactions from students once the library is established
besides regular updates on the progress.
15
Prime Minister Dr. Manmohan Singh recently talked about his vision for rural India: "My
vision of rural India is of a modern agrarian, industrial and services economy co-existing
side by side, where people can live in well-equipped villages and commute easily to
work, be it on the farm or in the non-farm economy. There is much that modern science
and technology can do to realize this vision. Rural incomes have to be increased. Rural
infrastructure has to be improved. Rural health and education needs have to be met.
Employment opportunities have to be created in rural areas."
'Go rural' is the slogan of marketing gurus after analyzing the socio-economic changes
in villages. The Rural population is nearly three times the urban, so that Rural
consumers have become the prime target market for consumer durable and nondurable products, food, construction, electrical, electronics, automobiles, banks,
insurance companies and other sectors besides hundred per cent of agri-input products
such as seeds, fertilizers, pesticides and farm machinery. The Indian rural market today
accounts for only about Rs 8 billion of the total ad pie of Rs 120 billion, thus claiming 6.6
per cent of the total share. So clearly there seems to be a long way ahead. Although a
lot is spoken about the immense potential of the unexplored rural market, advertisers
and companies find it easier to vie for a share of the already divided urban pie.
The success of a brand in the Indian rural market is as unpredictable as rain. It has
always been difficult to gauge the rural market. Many brands, which should have been
successful, have failed miserably. More often than not, people attribute rural market
success to luck. Therefore, marketers need to understand the social dynamics and
attitude variations within each village though nationally it follows a consistent pattern
looking at the challenges and the opportunities which rural markets offer to the
marketers it can be said that the future is very promising for those who can understand
the dynamics of rural markets and exploit them to their best advantage. A radical
change in attitudes of marketers towards the vibrant and burgeoning rural markets is
16
called for, so they can successfully impress on the 230 million rural consumers spread
over approximately six hundred thousand villages in rural India.
The rural market is zooming ahead at around 25 per cent annually. "The rural market is
growing faster than urban India now," says Venugopal Dhoot, chairman of the Rs 989
-crore(Rs billion) Videocon Appliances. "The urban market is a replacement and up
gradation market today," adds Samsung's director, marketing, Ravinder Zutshi.
17
MART, the specialist rural marketing and rural development consultancy has found that
53 per cent of FMCG sales lie in the rural areas, as do 59 per cent of consumer durable
sales, said its head Pradeep Kashyap at the seminar. Of two million BSNL mobile
connections, 50 per cent went to small towns and villages, of 20 million Rediffmail
subscriptions, 60 per cent came from small towns, so did half the transactions on
Rediff's shopping site.
Opinion leaders play a key role in popularizing products and influence in rural market.
Nowadays educated youth of rural also influences the rural consumers. Rural
consumers are influenced by the life style they watch on television sets. Their less
exposure to outside world makes them innocent and fascinated to novelties. The reach
of mass television media, especially television has influenced the buying behavior
greatly.
generating word of mouth publicity through opinion leaders, colorful wall paintings. The
Wide reach of television has exposed the otherwise conservative audience to
westernization. Panchayat televisions in Tamilnadu carries message that are well
received and contribute to community development.
Dynamics of rural markets differ from other market types, and similarly rural marketing
strategies are also significantly different from the marketing strategies aimed at an
urban or industrial consumer. This, along with several other related issues, have been
subject matter of intense discussions and debate in countries like India and China and
focus of even international symposia organized in these countries. Rural markets and
rural marketing involve a number of strategies, which include:
Client and Location specific promotion involves a strategy designed to be suitable to the
location and the client. Joint or co-operative promotion strategy involves participation
between the marketing agencies and the client. 'Bundling of inputs' denote a marketing
strategy, in which several related items are sold to the target client, including
arrangements of credit, after-sale service, and so on. Media, both traditional as well as
the modern media, is used as a marketing strategy to attract rural customers.
Partnership for sustainability involves laying and building a foundation for continuous
and long lasting relationship.
Innovative media can be used to reach the rural customers. Radio and television are the
conventional media that are reaching the rural audience effectively. But horse cart,
bullock cart and wall writing are the other media, which can carry the message
effectively to the rural customers.
Rural marketing is an evolving concept, and as a part of any economy has untapped
potential;
marketers
have
realized
the
opportunity
recently. Improvement
in
infrastructure and reach, promise a bright future for those intending to go rural. Rural
20
consumers are keen on branded goods nowadays, so the market size for products and
services seems to have burgeoned. The rural population has shown a trend of wanting
to move into a state of gradual urbanization in terms of exposure, habits, lifestyles and
lastly, consumption patterns of goods and services. There are dangers on concentrating
more on the rural customers. Reducing the product features in order to lower prices is a
dangerous game to play.
FMCG companies Hindustan Unilever and ITC have worked on increasing rural
penetration through corporate social responsibility projects such as Project Shakti
and e-Choupal, respectively.
According to Vijay Sharma, head, Project Shakti, the growth in sales from the
rural market has been both in value and volume terms.
Speaking about his experience of the rural market, he said, Through Project
Shakti, the company has been implementing programmers that aim at building the
market by increasing usage of the categories it is present in. The key here is to
educate consumers about improving their lifestyle and our brands play a role in
enabling this. For example, Lifebuoy Swasthya Chetana is a rural health and hygiene
educational programme. Our Shakti network is growing and the company expects to
cover 600 million consumers across 5 lakh villages through one lakh Shakti
entrepreneuers by 2010. Currently, Shakti has 45,000 entrepreneurs in the country.
Godrej group chairman Adi Godrej said, The overall FMCG market, both
urban and rural, have recorded robust growth rates. Urban markets have been relatively
weaker in some segments because the growth of certain sectors has been affected
lately. But good agricultural growth and government focus on these markets have led to
higher disposable incomes with rural consumers. Consumer spends on FMCG in urban
markets, through both traditional trade and modern trade, have been upbeat in recent
months. But modern trade footfalls in Mumbai have been listless in the past few days,
owing to the terror attack. However, kiranas, or traditional formats, continue to report
robust numbers. Traditional trade contributes over 90-95% of the total FMCG business.
Modern trade (formats like Food Bazaar or Spencers) contributes 10% to total FMCG
business in metros and around 5% to total industry sales.
22
23
24
3. RESEARCH METHODOLOGY
According to Clifford woody research comprises defining and redefining problems,
formulating hypotheses solution, collecting and evaluating data, making deduction and
reaching conclusion and at last carefully testing the conclusion to determine whether
they fit the formulating hypothesis.
4) To analyze the market opportunity and potential for existing and new entrants in the
rural market.
a. To find the growth of rural market over a period of 5 yrs.
b. To find the behavioral changes in the rural consumers.
Data Collection
Primary Data has been collected through personal contact. For this purpose both
Questionnaire and one-on-one interview was considered with the consumers, shop
Owners, distributors & suppliers of the company.
Secondary data has collected from magazines, newspaper, company literature and
Websites.
Data Analysis
Analyzing codes to each question were awarded. Thereafter every questionnaire was
written. After which the data were analyzed. The data analysis is to be done using
statistical tools and techniques. The result is to be critically analyzed and every aspect
of the objectives to be dealt with great detail. The findings are to be reported with the
help of suitable graphs and diagrams where ever required. The comparative analytical
findings are to be reported for most aspects of the objectives.
Sampling Procedure
26
105 Peoples
Methods of research
Tabular forms: Observations and inferences after each analysis is presented in a table
with numerical values. Tables make it easy to understand the findings at a glance than
going through the lengthy description.
Graphs: Each finding was presented graphically in the form of pie charts, bar diagrams
after analysis for easy references. The main features of frequency distribution are
conveniently communicated by representing the frequency distribution in the form of a
diagram,
Description: After the analysis of the collected data, interpretations are given at the
bottom of the tables. On the basis of the analysis, major findings and suggestions were
made.
LIMITATIONS OF STUDY
1. The sample size may not adequately represent the national market.
27
2. This study has not been conducted over an extended period of time, it do not
consider any hangs due to changes in the sudden needs of the customer
because of some seasonal change or any kind of festivals.
3. The duration of the project work was short enough to allow the full exposure.
4. The process of lead identification to the final completion of the documentation
requires more than just two months of time.
5. Thus the project was limited to either negotiation of the deals or carrying on with
an existing lead.
28
1. Through the nineties, the FMCG markets grew at almost 15% per annum in value.
Suddenly, in 2000, FMCG market growth stalled and then declined for the next four
years. It is important to understand why this happened.
2. The rapid opening up of the economy resulted in many new avenues of expenditure
3.
Hindustan Unilever Limited is a part of the 40 billion Unilever Group. The Group has
more than 400 brands spanning 14 categories of home, personal care and food
products. It has presence in over 100 countries and employs more than 174,000 people
Worldwide.
Over 700 million consumers Covers over 6.3 million retail outlets including direct reach
to over 1 million. Over 2000 suppliers and associates.
They decided to disengage from all non-FMCG or commodity businesses. In all, we
have divested and discontinued 15 businesses including Animal Feeds, Speciality
Chemicals, Nickel Catalyst, Adhesives, Thermometers, Seeds, Mushrooms etc. with
sales of Rs.1,750 crores as in 1999.
Today they are a focused on FMCG company with our branded business accounting for
over 90% of sales, consisting of 35 brands across 20 categories. These will be their
main engines of growth, with higher levels of resource concentration, be it technology,
people talent or media spend.
Building blocks of a strong Foods business
In Foods, there is enormous growth potential in leading the evolution of consumers to
branded and processed foods. Over the last few years they have focused on putting in
place the building blocks of a strong Foods business. Historically their Foods business
was fragmented and lacked scale. It was often commoditized with low margins. They
recognized that changing food habits would require considerable investment, which the
current business simply could not afford. Therefore they divested the non-value added
parts like Vanaspati. They have consolidated their portfolio and improved the gross
margins by over 13% through product mix and cost reduction. They have also cleared
the supply chain of all old stock and geared up for fresh availability on shelf. Today, their
Foods business has a healthy gross margin and a supply chain driven by freshness.
The Foods business will now invest for growth through relevant innovation.
30
32
Their brands and sound understanding of the local consumer are supported by a world
class Research and Development capability. They have over 200 of the brightest
Scientists and technologists based in India.
Their recent reorganization leverages the talent pool from across 16 global technology
centers, of which four are in India. In all, they have over 4,000 high quality minds across
Unilever working relentlessly to provide new benefits that make a real difference to the
consumers.
Winning with Customers
Hindustan Lever has historically had a strong bond with its customers. They have
strengthened this and reinvented the way they manage their distribution channels and
their customers. The sales structure has been transformed to leverage scale and build
expertise in servicing Modern Trade and Rural Markets. They have also de-layered their
sales force to improve the response times and service levels.
Their customers are serviced on continuous replenishment. This is possible because of
IT connectivity across the extended supply chain of about 2,000 suppliers, 80 factories
and 7,000 stockiest. They have also combined backend processes into a common
Shared Service infrastructure, which supports the units across the country. All these
initiatives together have enhanced operational efficiencies, improved the service to the
customers and have brought us closer to the marketplace.
Our Acorns: Investing in our Future
In the pursuit of growth, they have also begun to nurture some acorns for the future.
These are both new businesses and new ways of engaging with consumers. Their entry
into Water Purifiers, through Pureit, shows great promise. Pureit delivers 100%
protection against all water-borne diseases. It provides water which is as safe as boiled
water, without needing electricity or continuous tap water supply. At 17 paise per litre, it
is extremely affordable for the common man. They have launched it in Tamil Nadu and
are fine-tuning all aspects of the business system before a phased national launch.In
33
urban India, Hindustan Lever Network (HLN) is their direct selling initiative selling a
special range of products. It already reaches 1,400 towns with over 3 lakh consultants.
Besides reach, HLN enables direct interaction with consumers and customizes solutions
for them to give them a complete brand experience.
Our People & Organization
They have restructured the company, integrating eight Profit Centres into two Divisions
Home and Personal Care (HPC) and Foods. The result is a simpler and leaner
organisation, less hierarchical with fewer levels and greater empowerment. This has
eliminated complexity and speeded up decision making. Today the company is far more
youthful in attitude and spirit. There is greater openness and transparency.
35
18
16
18
15.5
16
12
14
12
10
6
7
4
6
4
5.5
0.5
2
0
5.5
Q4 2004
Q1 2005
Q2 2005
FMCG growth
Q3 2005
Q4 2005
Q1 2006
Q2 FY 10 result highlights
Company
Revenu
e
Growth
yoyo (%)
OPM
(%)
Inc(Dec.)
(bps)
Net
profit(Rs
mn
Growth
yoy(%)
(Rs mn)
Britannia
8,385
27.3
8.0
240
597
15.6
Colgate
4,125
13.4
12.4
300
635
16.0
Dabur
6,912
18.3
18.1
180
1,074
12.2
GLSM
4225
20.2
14.9
430
530
4.9
Godreg(cp
)
3,465
26.4
11.5
680
347
6.3
HUL
40,279
19.7
11.8
150
4,379
6.9
ITC
37,633
15.1
29.7
190
8,027
4.1
MARICCO
6,035
30.1
12.22
170
471
11.6
NESTLE
11,076
22.2
18.7
270
1326
9.9
TOTAL
122,134
19.3
18.2
230
17,386
6.5
37
20
15
10
5
0
2003
2006
2007
2015
Rise in Disposable
income
Disposable income
1200
1000
Disposable income
800
600
400
200
0
2003
2015
38
Modes of promotions
It was found in the survey that most of the companies use Campaigns (37%) as the
mode of communication for the promotion of their products. About 65% of the total
respondents suggested that Campaigns and Direct Contacts were the most prominent
modes.
Thus we can interpret that although the penetration of media (audio and video) has
increased but the companies rely on other modes and want the rural consumers to be
aware at their door step. This increases the trust for the brand and generates the need
which otherwise remains latent due to lack of awareness and enthusiasm. This also
gives the touch-and-feel experience and increases the sense of satisfaction among the
rural mass.
Sales
compaigns; 37%
39
RESPONSE
40
35
30
25
20
15
10
5
0
RESPONSE
40
REPONSES
35
30
25
20
15
10
5
0
REPONSES
41
42
43
COMPITITOR; 25%
AMBASSDOR; 35%
PRICE; 19%
NEED; 9%
UTILITY; 12%
44
AREA OF PROMTION
COMMUNICATION
AMMBASDOR
UTILITY
SPECIFICITY
PRICE
Competitive
pressure
Brand relevance
45
SWOT
STRENGTH
Variety of products
Distribution Network
Brand image
Quality Management
Innovation and R&D strength
THREATS
From High Class Competitor
Proctor & Gamble
Pantene
Dabur
Babool
Dabourlal Dent Manjan
Reckitt Benckiser
Dettol
Palmolive
Colgate, Nirma
46
OPPORTUNITIES
Huge Market
Increasing per capital income
Increasing consumption pattern
Potential for making more impact of brand image.
Coming in technology e.g. in water purifiers
WEAKNESS
Not able to compete with local competitor in the rural market
Not focus on upper class population
Pricing policy is not good
CONCLUSION
47
Hindustan Unilever ltd. Is a leading FMCG company in India and from last three
consecutive years has shown accelerated growth in FMCG portfolio. Customers in India
are also spending more in FMCG as their standard of living is growing. HUL has placed
itself successfully in the position of market leader in FMCG products. Though there was
some downfall in sales and profit of the company in the beginning of this decade but
after that HUL has shown considerable rise in both sales and profit. The future of the
company is also looking bright as FMCG market in India is still expanding and so we
can safely conclude that HUL will be able to secure its number one position in FMCG
product.
HUL has also started project SHAKTI that has provided it direct reach to rural market.
This may be considered a revolutionary step since the urban market is reaching its
saturation level and there is a huge scope exploring rural market. This will also be
helpful not only increasing its market share but also fight competition.
SUGGESTIONS
48
1) Suggestion: It is recommended that the HUL should focus more on the utility of the
products while promoting in the rural areas. The life-style of these people is different
from those in the urban areas. These people want value for their money, so they want
the promotions to be more informative rather being more glamorous. The value-formoney means that people will definitely buy, but they will buy only that product which
suits their needs. If once they purchase a wrong product they will never purchase it
again. This word-of-mouth may spread across and company might lose in the long run.
2) Suggestion: The HUL should provide full information in the rural promotions starting for
the need, utility, availability, price and the pack sizes available. It is recommended that
the pack sizes should be small and the pricing should be done in coinage system
example: Re.1, Rs.2, Rs.5, Rs.10 etc. This increases the affordability among the rural
consumers.
3) Suggestion: It is recommended that the brand ambassadors should be relevant to the
product and must look like he/she would be using the product in the daily life style.
Merely promoting the product by glamorous model may generate sales in urban areas
but for rural areas, information is of prime importance than glittering dances and
models. The companies should be very specific for choosing the brand ambassadors for
the rural areas as it may either boost up the sales or completely wash them out of the
market.
4) Suggestion: It is recommended that the HUL should have separate strategies for rural
as well as urban markets and should take care of addressing the needs of the rural
people in their promotions. They need information so they should be provided with it.
The rural promotions should use high profile celebrities but only to an extent and not in
all products. The rural mass is very specific and may discard the product completely if
not satisfied. For new entrants in this market it is recommended to have a start from a
small portion and then increase gradually..
QUESTIONARIE
NAME-
AGE49
OCCUPATIONMARITAL STATUS-
DATE-
For customer
1) How you select the product for shopping?
A. Brand
B. Quality
C. Price
D. Service
2) How you get information about product?
A. Posters
B. Neighbor
C. Advertising
D. Shopkeeper
3) How often you are used to go for shopping?
A. Daily
B. After 3-4 days
C. Weekly
D. Monthly
4) From which area you are belonging?
A. Rural
B. Semi urban
C. Urban
D. District head quarters
5) Your annual income?
A. 45000 to 100000 Rs.
B. 100000 to 150000 Rs.
C. 150000 to 250000 Rs.
D. 250000 or above
6) How much do you invest on consumption?
a. <30%
b. 30-60%
c. 60-80%
d. >80%
7) During purchase what in influence your purchase?
a. Price
b. Quality
c. Packaging
d. Experiment
50
e. Influence by others
8) Do you prefer any particular brand? ( If yes which brand )
a. Yes
b. No
9) Do you know about the presence of different products of different Companies in the
same category?
a. Yes
b. No
10)Have you ever tried them?
a. Yes
b. No
11) Are you satisfied with the products you are using?
a. Yes
b. No
12). Do you want any changes in the product?
a. Yes
b. No
13)Who are used to go for shopping?
A. Husband
B. Wife
C. Servant
D. Other
14)How you pay the bill of shopping?
A. Credit
B. Cash
C. Debit card
15)How much quantity you purchase for shopping?
A. On daily basis
B. In bulk
D. Other
19) Why are you more loyal to that product?
..
52
27)Do you think customers are satisfied with the products and services you
are
offering?
.
30)How do you find the changing tastes and preferences in customers?
BIBLIOGRAPHY
In order to make this project we have taken the help of the following websites & books:
www.wikipedia.com
www.oppapers.com
www.hul.co.in
www.scribd.com
54