INTRODUCTION

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INTRODUCTIONThe Company being selected for study under this project report is Hindustan

Unilever Ltd; The number one FMCG in India. It can be said beyond any doubt

that HUL is an undisputed leader in FMCG products in urban as well as rural

area. HUL caters to 850 million people in India which becomes 85% approx. of

the total population. Hence the study of HUL can give us a wide knowledge in the

fields like successful implementations of marketing strategy in urban and rural

India cutting across so many 7 cultural, social, regional, religious, linguistic

barriers.

Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods

company. It is a leading player in home and personal care products, foods and

beverages, and speciality chemicals.

What differentiates HUL? The product portfolio with its wide range of products sets HUL apart! It has

achieved market leadership in soaps and detergents (Surf) as well as hair and

skin care products (Sun Silk, Dove, Hamam). It is the second largest

manufacturer of dental care products (Close-up, Pepsodent). HLL is also market

leader in tea (Taj), processed coffee (Bru), ice cream (Kwality-Walls), tomato-

based products (Kissan), jams and squashes (Kissan), and branded staples

(Kissan Annapurna). The leading business magazine, Forbes Global, has placed

Hindustan Unilever at the top among the best consumer (household) products

companies worldwide for the current year With a plethora of brands,

Communication becomes imperative.

Every company has to communicate the presence of its products to capture a

large market share. How does a company do that? There are many tools that a

marketer can use: advertising, hoardings, radio, television and internet ads!

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OBJECTIVE

OBJECTIVE

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To have an overall knowledge of how marketing of products with regard to

FMCG sector takes places with reference to HUL.

To map the market share of HUL in he Indian FMCG market.

To study the different products offered by HUL.

To study the marketing strategies and public relations of HUL.

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BRIEF HISTORY

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HUL - BRIEF HISTORY

The company was incorporated on 17th October, 1933 under the name of Lever

Brothers (India) Pvt. Ltd. (LBIL). It set up its manufacturing units in Bombay and

Calcutta an associated company viz., Hindustan Vanaspati Mfg. Co. Pvt. Ltd.

(HVM), was earlier incorporated on 27th November 1931 which set up a

vanaspati factory in Bombay. Both LBILK and HVM were wholly owned

subsidiaries of Unilever Ltd., London, U.K. HVM later acquired three more

vanaspati factories at Shamnagar (West Bengal), Tirchirapalli (Tamil Nadu) and

Ghaziabad (U.P) In order to market the toilet preparations manufactured by LBIL

or imported from Unilever companies, a marketing company under the name

United Traders Pvt. Ltd. (UTL) was incorporated on 11th may, 1935 as a wholly

owned subsidiary of LBIL. In 1944, the management of LBIL and HVM was

integrated. In November 1956, HVM and two small associated companies viz.

William Gossage & Sons (India) Pvt. Ltd and Joseph Crossfield & Sons (India)

Pvt. Ltd., which were wholly owned subsidiaries of Unilever Ltd., were

amalgamated with LBIL and the name was changed to Hindustan Lever Ltd.

From 23rd October, 1956 activities of UTL were taken over by its holding

Company LBIL. With the amalgamation of business under one company, Indian

capital was introduced in this integrated business in 1956. HLL has been growing

very rapidly, especially in 1996 the growth was 88.6% HLL became the second

private company in India after Reliance Industries to cross the Rs 10000 crore

mark in 1998. At present it’s valued at Rs. 11764.31 crore.1 Its rapid growth has

given HLL place in the top 5companies regularly in annual BT-500 survey.

This huge success has come due to:-

Merger with Ponds India Limited

Launch of 40 new products

Doubling of rural distribution network from 50,000 to one lakh villages

NOTE: - In 2007 Hindustan Lever Limited (HLL) change in HINDUSTAN

UNILEVER LIMITED (HUL).

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ADVERTISINGSTRATEGY

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HUL : ADVERTISING STRATEGY

BUILDING CORPORATE IMAGECorporate communications and public relations for building image can truly be

looked upon in the context of global business and marketing as a subject about

which many professionals hold firm views, but know surprisingly little about.

Some see it as a menace, as an expensive flag waving exercise which their

company can easily do without. Others regard it as a myth, arguing that publicity

by of virtue its obvious nature, cannot hope to change perceived images in

people’s minds. At the other extreme are those who view corporate

communications (particularly advertising as a magic formula and an instant

panacea for every corporate ill. In reality it is none of these things. it is in fact, a

management tool to influence the outside world-the target group. So, the real

significance of building corporate image lies in preparing and consolidating a

sound global consumer base.

Every company wants to have a favorable image in the global market. In case of

HUL also, image-building plays the most important part in determining its

marketing strategy. Building corporate image is concerned with building

confidence and credibility by helping your target group understand you better.

Familiarity in this case normally improves acceptability of who you are and what

you are doing. Ignorance, on the other hand, can lead to mistrust, or even

contempt in some situations. Corporate image is built through more than one

strategic means, and often a combination of activities. For instance-

1. Advertising —corporate and even product

2. Public Relations—external and internal

3. Media Relations —especially the Press

4. Customer and Supplier Relations

5. Community Relations — good corporate citizenship

As India transits from a shod age-driven economy to a one propelled by

competition the reputation and image of a company like HUL will make difference

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between whether it rules the market or merely rues it. Corporate image is what

enables HUL to hold its own against rivals like IPCL And Haldia

Good corporate image can be built if you treat it like one of the Ps’ of marketing—

the fifth ‘P’ stands for Performance’ —professional corporate performance, doing

it the right way the first time. It’s in this regard that creativity in PR comes to have

a lion’s share in the entire process of corporate image building.

Creativity in PR means more than just pretty pictures and good copy. It is

building image with activities, which generate all-round impact and visibility for

the company. ‘What’ and ‘How’ is the task here. Creative corporate advertising,

is one route.

With respect to positioning similarly, the image communication and image

building activity must to able to find a right niche in the minds of the target group.

The ‘quality of the message, and activity, is vital for this.

Companies which benefit most from corporate image are those who take a long-

term view and commitment towards communication and the image of their

organisation through it. HUL can be presented as a striking instance of it.

Image and IdentityThere may be nothing new in saying that the corporate image is in the eye and

the mind of the receiver. Yet it is worth saying again and again. An organisation

transmits, on a sustained basis, messages to publics. It is the reception of the

message, which goes to create the intended image. In other words, corporate

communication is the process that translates an identity into an image. Again, in

brief, corporate image primarily refers to the image that a company has acquired

with the public whereas corporate identity refers to the image a company strives

to achieve, in order to build to build a reputation with its publics.

In this context, decidedly, every company like HUL needs a mission. The mission

is, in fact, a framework for business and all its activities, the value that drive the

company to achieve the corporate goals. No less important is the belief the

company has in itself. The mission is the glue that holds the company together.

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Here, the PR and its communication strategies come into distinct focus. If the

mission and the objectives of the organisation have to succeed, the corporate

body must communicate short-term goals, long-range objectives and even the

total mission of the organisation. Inadequate communications result in an

ambiguous corporate image within as well as outside and lead to breakdown in

the co-ordination of all contributing elements in an organisation.

Advertising…. Dare To Think BeyondIn present situation to address the "The soprano problem", advertisers resort to

shadow advertisement where the products become endemic to the setting of the

show. Where the products are shown being consumed or brand name is

exhibited in the background.

In India, the first shadow advertisement was used in movie "Bobby" where

motorcycle "Rajdoot" was advertised. Recently, there was shadow advertisement

of Coca-Cola in Hindi blockbuster "Kaho Na pyar hai". But the problem with

shadow advertisement is that positioning message of the product can't be

conveyed to consumers. Hence, the concept of shadow advertisement can be

extended further so that the theme of the advertising would become endemic to

entertaining show. This would be no more exclusive advertising. Rather,

advertising will be a part of the entertainment. But this has to be done in a

delicate manner so that the information about the product is passed on to the

viewers without disturbing the entertaining element of the show. If this succeeds,

that would be a great break-through for advertisement. Even this should not be

called advertising anymore, as that has become an irritating word in the mind of

the audience. Even though advertainment seems quite close to it, but it would be

more evolved. Since in advertainment we try to advertise and entertainment

comes with it. But in the recommended solution Hll wants to entertain the

audience only and advertisement is an integral part of the show. The major

question would be, whether the audience would be able to comprehend the

hidden positioning message? Here are few examples on how to make the

positioning message integral part of the show. HUL have programmes like

"Antakshari" in which participants take part in groups. The groups can be named

after some brands and the participants would be projected as such that they

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would be personification of brands. Suppose one group is named Lux, the

participants are expected to be beautiful women who stand for Lux. So this can

be done for many programmes, which has format like this. Suppose HUL

produced a soap opera and the dialogue of the characters at some point would

be focussed on the products of HUL. Of course the context has to be right and

should be very much along the script not that it would destroy the element of

entertainment. Hence the major challenge would lie before scriptwriter and

director. Even a particular character of an opera becomes very popular as the

opera becomes very popular. Hence building such character, which would

personify the brand and both the character as well as the brand would grow in

due course of time. However even if time constraint is removed, course content

constraint comes in. But the scope of story telling is far greater. Attention

grabbing will be replaced with attract attention and no zipping/zapping problem.

Audience will be more receptive and comprehension of course would be

dependent upon how it is executed. Practicability of the idea would be tested

when it will be implemented. Hence unless it is tried and tested it can be

concluded that whether it will click or not. Let's take the example of Coca-Cola,

the scriptwriter would be creating situation in each episode of a family soap

where there would be opportunity to celebrate and drink coke! To give another

example, a multi utility vehicle with safe driving positioning plank could have

exploited the plot of the recent movie "Road".

If this concept clicks, there would be nothing like it for advertisers. If it happens, in

future big advertisers like HUL would be diversifying to entertainment business!

Of course the ad budget of HUL is far bigger than the total budget of many

entertainment houses.

Irrespective of whatever positive points or negative points it has, this concept can

be tried for programmes aired in pay channels simply because there is no other

alternative to advertise during the programme. Besides it is expected to solve the

other problems those are discussed above. Advertisement would be no more the

troublemaker and irritating. Hence catching attention would be much easier. Only

testing of this idea could help us to conclude whether to roll out from the concept

from programmes of pay channels to programmes of free channels.

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Advertising

“DOING BUSINESS WITHOUT ADVERTISING IS LIKE WINKING AT A GIRL IN THE DARK; YOU KNOW WHAT YOU ARE DOING, BUT NOBODY ARE DOES”

According to the American Marketing Association, Chicago adverting is “any paid form of non personal presentation of ideas, goods and services by an identified spoor”.

Advertising is a form of persuasive communication with the public.

The communication is usually one-sided from the Advertiser to the public

The object Advertising are :-

(1) Inform customers of the goods and services.

(2) Brings out the product use P’s

(3) Calls for or invites people to buy the product

(4) Mass communication

(5) Attract attention

(6) Lousing interest

(7) Building desire

(8) Obtaining action.

ADVERTISING PROCESS

The Frozen Products Division of HUL follows the adversing procedures laid

down by the company. The advertising agency also adheres to the company

norms. A clear sequence of activities is followed. This has been outlined below:

1. Usage and Attitude Study – Before a new product or advertising idea is

involved, a complete quantitative research study is carried out in order to

fully understand the needs, wants, preferences, purchases and

consumption habits of the target segment. The results of the study

typically point out any opportunities that can be exploited in terms of

unsatisfied consumer needs. On the basis of the above results, a new

product or advertising concept is evolved.

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2. Concept Testing –Once the new concept has been thought of, it goes into

qualitative research. This qualitative research primarily focuses on testing

the acceptance of the concept by the target segment as well as the

evolving of an appropriate positioning plank. The positioning could be

attribute, cost or benefit based. Based on consumer feedback, an

appropriate positioning platform is determined.

3. Agency Brief –Once the concept testing is successfully complete, the

Brand Manager prepares a brand positioning statement. This is a

description of the brand and includes the product description, likely brand

name, category, name, variants (if any) and key brand benefits (sensory,

functional and emotional). An agency brief is then prepared for the

Agency, which includes the BPS as well as answers to the following

questions:

- Why do we want new advertising?

- Whom are we talking to?

- What is the benefit to be perceived by the consumer?

4. Animating Testing: The storyboard is developed by the agency. After this

has been approved by the client, the animatics go into testing. These are

advertisements made from frame-by-frame shots of the storyboard with

appropriate music/dialogue/voice over. This is more economical when

compared to shooting the actual advertisement. The animatics are shown

to the sample audience for feedback and frame-by-frame analysis. The

name, product design, ambience, music and overall purchase intention

after viewing the advertisement are measured. Brand personification may

be included. If the results are positive, the advertising concept is frozen.

5. Media Brief – This is given to the media planner and is similar to the

agency brief. However, it includes media vehicles desired required

awareness, frequency (number of exposures) and reach (% target

segment who should view it).

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6. Post Launch Dipstick –After the advertisement is released, a post-launch

study may be conducted in order to gauge advertising effectiveness. This

is typically conducted among users as well as non-users. It measures

advertising recall, awareness of the advertisement and the brand,

intention to try after viewing the advertisement overall purchase intention,

etc.

PUBLIC RELATION

“ Public relations practice is the deliberate planned and sustained effort to

establish and maintain mutual understanding between the organisation and its

publics”.

By :- Institute of Public Relation (British) 1948.

To understand the definition better it in important to know as to who does the

word publics refer to.

Public are -

: Shareholder

: Customers

: Employees

: Trade Unions

Public Relations Here we try to identity the distinguishing factors between Advertising and public

relations:

Advertising is a commercial persuasive activity aimed at promoting a particular

idea or a viewpoint product, or service, institution and so on through the mass

media.

As refined by the British Institution & Practitioners of Advertising:-

“ADVERTISING presents the most persuasive possible selling message to the light prospects for the product or service at the lowest possible cost on the other hand “.

Public Relations demands more time and effort than advertising because

advertising is limited to special selling and buying tasks. For advertising the

basis jobs of conceptualizing , producing, space buying etc. Can be delegated

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folly to agencies whereas such total hiring of agencies for absolute Public

Relation functions cannot be conserved.

Public relations is a long-term policy measure and is not built overnight. It is also

not free of cost, it is built over a period of time.

“With public opinion against it nothing can succeed”.“With public opinion on its side nothing can fail”

- Abraham Lincoln

Public relations, taken as a component of management discipline, is of

comparatively recent origin. As a concept, it was critically evolved in business

and industry and subsequently spread to other areas of human activity.

Applicability of this profession in government and public institutions like

corporations, municipalities, universities, hospitals, social service organisation

and professional institutions it truly immense. Admittedly, even before the

emergence of industry, business and government, a public relation was in

practice in people’s daily life. In effect, a public relations is the result of the action

inherent in an individual, an institution or an organisation.

Public relations is never a private monopoly of PR practitioners. In fact, members

of an organisation, and especially those in leadership, management and

supervisory positions have a PR role to play and often even singularly. People

adept in the art of public relations stand better chances of success and survival

since they can always find areas of mutual interest. They also use modern

methods of communication and persuasion which go a long way in establishing

mutual understanding based on truth, knowledge and complete information.

THE SIGNIFICANCE OF PR IN HULIt may be useful to begin by first getting out of the way certain popular notions

which, as with many popular beliefs are either without any basis in reality or at

best express only half truths. For instance, PR men are regarded by some to be

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fixers, a breed of people who will wangle things for you by the most questionable

methods. There is also a popular idea that PR men spend most of their time

winning and dining, using for the purpose fabulous expense accounts they are

supposed to have access to. While no one can prevent a charlatan from posing

as a PR man or styling himself as a PR consultant he is no more a tine

practitioner of PR than a quack selling magic remedies by the wayside is a

physician. How deep-seated such popular misconceptions about PR can be

reflected by the fact the even now one comes across articles published in well-

known papers and journals airing such naive ideas about PR

Again, PR is sometimes confused with publicity. Publicity is certainly one of the

instruments of PR but is would be as wrong to equate publicity with PR just as it

would be to equate the stethoscope with the practice of modern medicine. To

continue the analogy, PR seeks to diagnose the ills of an organisation in its

relations with the public or any segment of the public, it prescribes remedies and

proceeds to administer them. It then keeps a watch on the patient to see whether

the remedies prescribed are producing the desired effect so that the medicine

can be changed if necessary after evaluating the results. Again, as in medicine

prevention is considered more important than the cure, PR believes in

maintaining the good health of the corporate body -so that drastic remedies and

bitter pills may not have to be swallowed later.

Analogies may be useful in giving a general idea but can never be as precise as

a definition. PR which is now a well-established discipline therefore needs to be

defined so that we may be clear about what we are discussing when we talk

about PR. It is ‘the attempt by information, persuasion and adjustment to

engineer public support for an activity, cause movement or institution. ‘Public

relations as and applied social and behavioral science is that function which -

measures, evaluates and interprets the attitudes objectives for increasing public

understanding and acceptance of the organization’s products, plans, policies and

personnel; equates these objectives with the interests, needs and goals of the

various relevant publics; and develops, executes and evaluates a programme to

earn public understanding and acceptance.

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AN OVERVIEWPublic relations today is still a very underdeveloped field. It is growing in

prominence and has started showing results in various sectors of corporate India.

More and more companies are making use of PR to solve their problems and

increase their overall corporate equity. The entire process needs a closer look.

To gauge the effectiveness of PR in HUL over the last decade it is necessary to

examine its function and overall areas of applicability.

Social Responsibility of Business and IntroductionThe need for PR arises also from the responsibility that an organisation owes to

the society, which nurtures it and enables it to function and operate. No

organisation, leave aside a modern business organisation, can function in a

vacuum. It flourishes only because a particular kind of social environment exists.

This environment is often taken for granted but in times of social turmoil when

normal conditions are disrupted the dependence of the organisation on the social

environment is brought home sharply. How often have we not seen during

periods of national strife or serious political instability leading to a break down of

law and order that business comes to a standstill? While these may be extreme

examples they illustrate the fact that without the right social environment no

business can exist. Thus every business organisation has a stake in the social

environment and must contribute its mite towards its continued existence and

improvement.

A business organisation’s responsibilities to society cover a wide area. They

range from its responsibility to supply quality products at a reasonable price and

to ensure that it reaches the consumer at the right time and place to its

responsibility to contribute to the development of the ‘Infrastructure, to the

realization of national objectives and to the identification of its interest with the

vast population of the country in which it operates. The world over business

organisation which are forward looking and farsighted are trying to make a

contribution to social causes apart from achieving their immediate and ultimate

ends of producing goods for sale and marketing them at a profit. Such

contributions can range from grants to universities, scholarships of various kinds,

aid to hospitals and charitable institutions to actual involvement in projects of

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social significance. An organisation in the USA sponsored a research fellowship

to discuss the causes of student unrest and to find solutions to the problems of

tension in the campuses. In India too there are business organizations, which

are aware of their social responsibility and have made an effort to discharge it in

accordance with their resources and the needs of the situation. Studies on the

extent of industrial pollution and ways and means of combating it, Involvement in

family planning programmes, development of low cost nutritious food for the

poorer sections of the people, studies on the causes of a State’s decline and the

steps needed to restore it to health are some examples of social responsibility in

corporate behaviour as practiced in India in recent years. But there is little doubt

that instances of such conduct are few indeed in relation to the enormity of the

problems facing a country as vast as India with a burgeoning population a large

part of it living below the poverty line.

PR and Environmental Path of HULThe present generation has, quite understandably, made the environment a focus

of attention. With growing environmental awareness, there is now a clear

perception that our activities affect not only the air we breathe, but even the air

which regulates our climate. More importantly, uncontrolled activities cannot be

sustained without loss of plant and species, natural habitats, coast and hinterland

and the decay of buildings, places of natural beauty or historic interest. Hence,

the need for a genuine commitment to sustainable development which is

integrated with the national policy on industry, energy, transport, trading and

planning.

In the above context, public relations professionals are well placed to direct

attention to environmental issues and can make a unique contribution to public

and professional debate, and to environmental education. In fact PR has to live

up to its environment education. In fact PR has to live up to its environmental

responsibilities even when clear, universally agreed targets are still lacking in

many issues. The responsible PR person must ensure that his organisation is

greener than green on all the major issues according to current opinion,

demonstrate to the world at large that this is so, and, for the future, help form

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opinions and set the standards for the organisation’s own as well as the common

good.

In a nutshell, environment is now a corporate concern and today’s PR persons

have to build up comprehensive communication programmes, internal as well as

external, which involve listening just as much as talking.

Now, environment is no more just a slogan, it is a key consumer issue.

PR today must:

* Understand ‘green’ issues and recognize the social responsibility of

business.

* Make environment matters a priority.

* Consider the environmental impact of the company’s actions.

* Avoid pollution of any kind.

* Encourage environment audits to determine what the organisation has

done and is doing in relation to the environment.

* Ensure recycling of wastes.

Social Responsibility as Public Relations at HULA citizen’s role extends beyond his or her call of duty. A responsible corporate

citizen needs to look beyond the financial numbers of sales and profit growth,

from year to year.

HUL is committed to the development of the community around its manufacturing

complexes. Over the years, HUL has not just supported communities financially,

but has worked towards providing people with skills to earn a sustainable

livelihood. HUL’s long-term aim is to raise economic standards of these

communities, through self-sustainable measures.

PR Role in Image and IdentityIt is true that corporate image concerns the industrial marketer directly as brand

image is crucial for the consumer market. The ordinary consumers, while

oblivious of the name of the manufacturer, can easily identify the brands of

consumer products. Repeat this test for industrial goods : the same respondents

are aware of the name of the manufacturers but many won’t be able to name the

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industrial products. Interestingly, a third set of organisation would be known both

for their industrial or consumer products as well as for their distinct corporate

image. Where does corporate PR stand in these diverse settings? Although

easier desired than achieved, PR attempts to create the desired image by its

involvement in all the factors of corporate identification programmes.

GOVERNMENT RELATIONSA government relation has two facets to it. Firstly, the PR for the government (as

an organisation) and Secondly, PR with the governments as the target group.

Both are important and very needed by corporations.

Public relations for the government involves mobilising public support for

government’s activity, for instance, family planing, control, environmental

protection, beautification of cites, etc. the company generally sponsors some of

these activities by providing monetary help or other resources. The basic

objective of the company is to build relations with the governments, and also help

for the good of the community of society.

Public relations with the government involves keeping the government—

politicians and bureaucrats—on your side. It envisages maintaining good links

with the government, which will be of benefit to the company in its overall

business plans and operations. Public relations with the government in some

ways is quite difficult and demanding. It requires special planning and efforts for

the organisation to be successful. A government, local or national, comprises

many ministries, departments, individuals and personalities. Public relations

people have to acquaint themselves with the working of the government, and the

intricacies and people involved at various levels, and then handle things

accordingly to be able to achieve what they have set out to achieve.

The government should not be looked at as an adversary. In fact, you should

make all efforts to help the government and support its activities and policies as

far as possible. Government leaders must be kept informed from your side about

the organisation’s activities and policies—especially those which are contributing

to the welfare and development of the state or the nation. Such relations will be

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mutually beneficial in the short-term and the long-term. Corporations should,

however avoid getting involved with politics and political issues.

MEDIA RELATIONSMedia relations Is a vital tool in PR. A large amount of communications and PR

are conducted through the media—especially the Press. When a company gets

media coverage, it is not always flattering. Business is always vulnerable to

attacks by the media. Media can often aggravate problems—especially crises.

As in the case of Union Carbide and HUL a few years ago. Hence, media,

particularly the Press has to be handled very carefully. The media must be kept

on your side. All efforts must be made to ensure this strategically. It takes years

to build a good image, but to destroy it you need just a few bad reports in the

media.

It is important to build a working ‘rapport’ with the media. You cannot afford

unnecessary reactions and distortions. If you do go to the media then always go

with a strategy—be selective in the choice of media, use only influential media

(especially publications in the Press), do not spread your communication too thin,

go for quality rather than quantity. Selective and in-depth coverage is what you

must aim at, as it is more effective and produces the desired results. let your

communication be complete honest, and backed with hard facts. The

organisation must be able to live up to its claims and promises in media,

otherwise you can be in for further problems. The efforts made by HLL in this

respect have been orchestrated well to build image as well as to counter

negative publicity.

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FINANCIAL RELATIONSWith the growth of the Indian economy and the business sector, management of

financial promotions and PR has taken on a new dimension. HUL is making

special efforts to ensure the goodwill of their shareholders, investors, financial

institutions, and the rest of the financial community. This is being done in the

mass media and specialised media ranging from annual reports to special

brochures to audio-visuals, video films, and even corporate advertising in the

Press and television.

The main target group of a company in financial PR is its shareholders and

potential investors. They have to be given information they are entitled to have,

and they have to be kept interested in the company. Public relations must

establish, maintain, and improve the company’s image and reputation so that it

can obtain funds from the public and the financial institutions on the most

favorable terms when it desires so The financial and business Press, today, is

very important in achieving this objective,

The importance of financial PR and the need for it is seen from the number and

growth of PR agencies specialising in financial promotion, advertising and PR

management in India. These include well-known names like Pressman, Clea,

and Sobhagya, now a host of others. They provide their clients a wide range of

services and expertise in PR and advertising.

CUSTOMER RELATIONSIn the past PR and marketing were considered separate and unconnected

activities of business in a company. Today, PR has a role to play in marketing

not only to build image, but to also help solve problems concerning a company’s

products

Or services among consumers or other special groups, and generally protecting

the company’s reputation at the marketplace. Public relations with customers,

and with suppliers, in industrial products/services marketing at the institutional

level is gaining more and more importance today.

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In today’s competitive market customers opt for products that are known and

have an image, and are backed by quality and good after sales service.

Marketing people cannot ignore public opinion on such aspects. In the long run,

unfavorable opinions certainly affect sales. Public relations can help in

controlling and setting right some of these opinions; it is therefore essential for

companies to assign some of their attention and resources to develop PR in

marketing.

COMMUNITY RELATIONSToday, the relationship between corporations and the community is a vital issue

in management of business organisations. It is acknowledged that business is no

longer done for the sake of profits alone. Because a company functions within a

community, its responsibility extends to giving back to the community something

for what it makes from it. This has been the philosophy of the Tata’s in India for

years, today it is accepted and is being followed by a number of other companies.

This belief is now also considered important and crucial by the government,

consumerists and opinion leaders.

Company relations at an organisation can vary from local community welfare

activities, to large-scale sustainable development programmes for the betterment

of lives of people. Companies have to consider the community as one of its

prime target groups. The objective of PR is to help build image of the company:

as a good corporate Citizen, a good company to do business with, and a good

company to work for.

EMPLOYEE RELATIONSIn employee relations, communicators are vital at every level. From top to

bottom, also from lower level to the top management level, and even the

horizontal communications among colleagues at the same level and between

functions. The basic function of communications and PR in the organisation is

not just better functioning, but a fostering of goodwill, trust, and togetherness

among employees.

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Employee in HUL one in a large number and they include both blue collar to

white collar. Internal PR must reach out to all of them. This makes the task

tough and critical, requiring much thinking and planning. Before planning PR

programmes, therefore, it is important to first assess the needs and requirements

of employees. One of the major goals of PR is to foster the participation of

employees in decision-making, for this PR programmes must be evolved around

their motivations, job enrichment, training and development, working

environment, productivity, and overall growth in the company. This, in other

words, means PR for better employees, better employee morale, and better

relationships, resulting in success and growth of the organisation; and therefore,

a better image and reputation for it.

In the case of PR with employee, the function may seen to overlap with the

working of the company’s personnel department. In practice, however, it is

necessary that the two departments work closely together. They can mutually

reinforce each other, especially in areas like HRD. It is worth trying to integrate

HRD with PR, if possible, in a company. More so when with the growth of

organisations in size, the individual employee is becoming smaller and less

significant, and thus losing his or her identity. Public relations with HRD can play

a crucial role in building and motivating the employees on their jobs and in their

contributing towards achieving the company goals.

INDUSTRIAL RELATIONSThis is another important area of work for PR executives. Its importance is

growing, with staff and workers getting to be united, more enlightened and

demanding. Whether they are unionized or not does not make a difference in the

PR work, in either case, good relations have to be maintained. In the case of

unions, it is important to realize that unions have their own goals. This makes it

more difficult to deal with them in many respects. Understanding these goals,

and how they will affect Industrial relations and PR efforts, is the first priority in

dealing with unions.

Industrial relations concern the staff and workers in their relationship, as

individuals and as a group, with the management. Industrial relations are most

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often concerned with problems related to wages, other monetary benefits,

conditions of work, and so on. But through timely PR and proper communication

many of these problems can be avoided or overcome altogether.

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PERSONAL PRODUCTS

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PERSONAL PRODUCTS : THE CORE CONCERN OF ADVERTISING

1. Fair & Lovely

Fair & Lovely - the miracle worker Based on a revolutionary breakthrough in skin lightening technology, Fair &

Lovely was test marketed in 1975 and has been nationally marketed since 1978.

In fact, Fair & Lovely has been extensively tested with consumers in India and

abroad, and has been proven to be superior in terms of benefit delivery to all key

competitive brands.

Fair & Lovely's formulation contains a unique fairness system that contains a

combination of active agents and sunscreens. This has been specially designed

and proven to deliver one to three shades of change in most people. Also its

sunscreen system is specially optimized for Indian skin. Indian skin unlike

Caucasian skin tends to 'tan' rather than 'burn' and, hence, requires a different

combination of UV A & UV B sunscreens.

The fairness cream is marketed in over 38 countries through HUL Exports and

local Unilever companies and is the largest selling skin lightening cream in the

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world. The brand today offers a substantive range of products to consumers

including Fair & Lovely Fairness Reviving Lotion, Fair & Lovely Fairness Cold

Cream and Fair & Lovely Fairness Soap.

2. Ponds

Pond's - the beauty expert Pond's Cold Cream was launched in India in 1947 and was followed by the

launch of Pond's Dream flower Talc 1956. The current skin offerings under the

Pond's Brand name include Moisturising Cold Cream, All Day Oil Control Cream,

Daily Face Wash, Blackhead Removal Strips and Dream flower Body Lotion. In

talc’s, Pond's now has four variants. Pond's Dream flower Talc is now enhanced

with 'Floral Extracts', Pond's Sandal Talc is a sandal variant with 'Natural

Sunscreen', Pond's Light 'n' Fresh comes with SAM (Sweat Absorption Material),

while Pond's Magic Deo-Talc now has a new enhanced deodorant protection.

Pond's is about beauty that reflects the times. Pond's brings superior and

innovative solutions to meet all skin care needs by delivering outstanding

personal beauty solutions - through scientific skin expertise, extensive research

and stringent product testing.

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Pond's track record reveals an ensemble of products that make a real noticeable

difference, proving therefore that Pond's remains the most trusted beauty expert

in the consumer's mind.

3. Oral Care Product Jee Ke Dekho Yar Close-Up

Close-Up, the youth brand, was the first gel toothpaste to be launched in India in

1975 and has remained the category leader ever since. The brand arose out of a

universal need for confidence in a social situation, starting with fresh breath.

In 2002, Close –Up was relaunched in two variants - Close-Up Tingly Red and

Close-Up Eucalyptus Waves. Close-Up Tingly Red and Close-Up Eucalyptus Waves with their superior formulation provide superior cleaning, enhanced

flavour and a freshness that extends from nose to throat. The communication for

Close-Up focuses on the base line, ‘Jee Ke Dekho Yaar’, which encourages

young people to go out and get a life!

The new flavours are in line with HUL’s endeavour to continuously innovate and

offer new advanced products to the consumers. These flavours have been

specially designed to win over competition consumers.

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Recently, Close-Up Whitening, the tooth-whitening variant, was introduced with a

unique self check device called “shade card”. This helps consumers identify

how “yellow” their teeth really are and also to track the improvement in teeth

colour as they use the paste. The toothpaste helps teeth get whiter in 4 week of

regular use.

4. Hair Care Product : Sunsilk

Sunsilk - the hair expert Launched in 1964, Sunsilk is the largest beauty shampoo brand in the country.

Positioned as the 'Hair Expert,' Sunsilk has identified different hair needs and

offers the consumer a shampoo that gives her the desired results.

The different variants of Sunsilk - Black Shine (for dull hair), Bouncy Volume (for

thin, short hair), Silky Strength (for dry hair) and Natural Nourishment (for regular

oiled hair) - are based on well researched consumer needs and hair types.

The benefits are more compelling and relevant since the variants are harmonised

in terms of the product mix - fragrance, colour and ingredients are all well linked

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to cue the overall synergy. The range comes in premium packaging and design.

The accent is on femininity, as captured in the tagline – “Baalon mein dhadkan, dil mein shararat.” Sunsilk was extended to hair colourants in June 2001. The

colourants are available in 7 variants that are specially suited to Indian hair and

skin tones and colour hair gently and safely.

Clinic - for healthy hairClinic Plus shampoo was launched in India in the year 1987 and is positioned as

the 'shampoo that makes your family's hair healthy and glowing.' Clinic Plus is

targeted at mothers, educated yet measuring their self-esteem through their

children's achievements.

In the year 1996, Hindustan Lever launched another variant of Clinic shampoo -

Clinic All Clear dandruff shampoo. The core proposition of Clinic All Clear is that

it is "the only shampoo that gives you dandruff-free soft hair." It is targeted at the

appearance conscious young adult, seeking dandruff-free, gorgeous hair to

create a positive impression.

5. DeodorantsAxe - the magnet

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Axe, the deodorant that is considered cool, fashionable and stylish by young men

was launched in India in 1999. Available in more than 60 countries around the

world, it is a world leader in male toiletries.

Axe has a mix that is completely harmonised globally - from its proposition and

communication to the product, as available on the shelf.

Axe is available in four fragrances: Java, Alaska, Atlantis and Voodoo. Voodoo

has become the leading male deodorant brand in India within just one and a half

years from its launch.

Consumers associate a lifestyle of cool clubs, cool music, and cool fashion with

Axe. The youth view it as an icon which introduces many 'firsts' to their world of

music and dance - like the first "World's Longest Dance Party" and the first

ever “Axe Voodoo Island Party.”

6. Colour Cosmestics

Lakme - on top of the worldHalf a century ago, as India took her steps into freedom, Lakme, India's first

beauty brand was born. At a time when the beauty industry in India was at a

nascent stage, Lakme tapped into what would grow to be amongst the leading,

high consumer interest segments in Indian Industry - that of skincare and

cosmetic products. Armed with a potent combination of foresight, research and

constant innovation, Lakme has grown to be the market leader in the cosmetics

industry.

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Lakme today, has grown to have a wide variety of products and services that

cover all facets of beauty care, and arm the consumer with products to pamper

herself from head to toe. These include products for the lips, nails, eyes, face and

skin; and services like the Lakme Beauty Salons.

Beauty and fashion is not only about looking good but also feeling great, which is

reflected in the advertising line for Lakme, “On Top Of the World'” 7. SOAPS AND DETERGENTS

1. Fabric Wash Surf - Mummy's best friend Launched in 1959, Surf was the first in the Indian detergent powder market. Over

the years, Surf has anticipated the changing washing needs of the Indian

homemaker and constantly upgraded itself.

Surf Excel, India's largest selling compact detergent powder, in its newest avatar

promises to tackle the toughest stains without damaging the color of the fabric.

This is because only Surf Excel has smart sensors that can differentiate stains

from colors. Now you don't have to worry about tackling the really tough stains,

especially on your colored clothes anymore. “Surf Excel Hai Na!”For those who seek the Surf Excel clean in the front loaders, the specially

designed low suds formulation Surf Excelmatic promises to give just that - a

superlative clean.

Those preferring the modern and convenient way to wash can rely on Surf Excel

Liquid. The liquid form penetrates deep allowing great wash results. For the really

tough stains, you can apply the liquid directly on the body of stain (through a stain

treater) - you will see tough stains being tackled with ease.

With years of laundry expertise, Surf Excel now has a Careline,

surfexcel.careline@hll.com that can answer all queries on fabric care.

Wheel

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“Mehnat kum, phir bhi dhulai No. 1.” Wheel - makes washing easy Wheel is a detergent brand that caters to the laundry needs of the mass market.

It was first launched in the year 1987. Wheel Green is the single largest (No 1 by

market share) detergent brand in India by value.

Wheel is packed with powerful lather (power foam) that cleans even tough dirt

stains on collars and cuffs with ease. It, therefore, cleans effectively with lesser

effort, making a laborious chore like washing - light and easy. Moreover, Wheel

does not burn hands or harm clothes like some other detergents, which contain a

high percentage of soda.

Wheel also has a premium variant called Active Wheel. It gives the consumer the

value of 3 benefits in 1. It not only cleans effectively with less effort but also

keeps the colored clothes looking bright and has a great fresh fragrance. Active

Wheel gives consumers 'Quality Clean and Care' at an affordable price. In short,

Wheel can be summed up as - 'Mehnat kum, phir bhi dhulai No. 1.' Wheel is,

therefore, the smart housewife's choice.

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2. Personal Wash

Lifebuoy

Lifebuoy – “Family health protection for my family and me” World’s largest selling soap offers a stronger health benefit to the entire family

Launched in the year 1895, Lifebuoy, for over a 100 years, has been

synonymous with health and value. The brick red soap, with its perfume and

popular Lifebuoy jingle have carried the Lifebuoy message of health across the

length and breadth of the country, making it the largest selling soap brand in the

world.

In 2002 Lifebuoy was relaunced, marking a new turning point in its history. The

new mix includes a new formulation and a repositioning of the brand to make it

more relevant to both new and existing consumers.

Lifebuoy is no longer a carbolic soap with cresylic perfume. It is now a milled

toilet soap with a new health fragrance. The new formulation has an ingredient,

Active-B, which offers protection against germs, which can cause stomach

infection, eye infection and infections in cuts and bruises. The new health

perfume has been selected after one of the most extensive perfume hunts in the

industry. The new milled formulation offers a significantly superior bathing

experience and skin feel. The new formulation, new health perfume and superior

skin feel, along with the popular red colour, have registered conclusive and clear

preference among existing and new users.

The new Lifebuoy is targeted at today’s discerning housewife with a more

inclusive “family health protection for my family and me” positioning. Lifebuoy has

made a deliberate shift from the male, victorious concept of health to a warmer,

more versatile, more responsible benefit of health for the entire family.

The new Lifebuoy range now includes Lifebuoy Active Red (125gm, 100 gm and

60 gm) and Lifebuoy Active Orange (100gm). Lifebuoy Active Orange offers the

consumer a differentiated health perfume while offering the health benefit of

Lifebuoy.

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At the upper end of the market, Lifebuoy offers specific health benefits through

Lifebuoy International (Plus and Gold). Lifebuoy International Plus offers

protection against germs, which cause body odour, while Lifebuoy International

Gold helps protect against germs, which cause skin blemishes.

Lux

Lux - the film stars' choice Endorsed by popular film stars, Lux is one of the biggest brands in the soap

category. Lux was launched in India in the year 1905.

Lux comes in 3 attractive variants - Lux Pink is a fragrant ensemble of almond oil,

Lux White a rich creation of milk cream and Lux Black (in a pastel shade of lemon

yellow) overflows with the goodness of honey, and is also the first of its kind in

the market.

The new, exotic addition includes International Lux Skin Care 'Sunscreen

Formula'. A unique soap, which protects the skin's fairness against darkening by

the sun. The product contains a combination of sunscreen actives, which are

deposited on the skin as a protective layer, even as the soap washes away dirt

and grime. This breakthrough, for the first time in the world, is the result of

technology patented by HUL.

In short, Lux has worked its charm on millions of women, making their dreams of

beauty come true.

BreezeBreeze - makes dreams a reality

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Launched in 1991, Breeze is a mass-market soap that sells in the economy

segment.

The fragrant ensemble from Breeze comprises 3 variants, which contain the real

goodness of natural ingredients such as rose water, sandal extracts and lime

extracts, giving skin a glowing radiance.

Originally launched in 1989, Breeze is today perceived to be a good value for

money brand - with outstanding sensory experience. Its strengths are its

fragrance, lather and the soft feeling it has on the skin. A new variant, a hair-and-

body soap, Breeze 2-in-1, was launched in January 2001. Enriched with coconut

oil and lime extracts, it was the very first of its kind and leaves the consumer

looking and feeling beautiful.

The brand plays a critical role in its consumer's life, because Breeze for her is

more than just soap. It is, in fact, her beauty aid, her only cosmetic, and one that

she can afford. She regards Breeze as her only way of fulfilling her dream of

looking beautiful.

3. Household CareVim

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Vim – Khar Khar ka moh tod jawabIn 1993 Vim Bar was launched. This product had many benefits including better

clean, ease of handling and easy storage. Vim Bar was re-launched in 1997 with

an improved formulation and new communication, which tackled economy and

performance. Much appreciated by the mass market, it resulted in conversions

not just from powder users, but also from proxy users who did not upgrade to

powders but preferred to use Vim Bar instead.

The brand has grown significantly registering strong double-digit growths in both

volume and value terms. Vim Bar was relaunched a second time in 2002, with a

unique “Stain Cutter” formulation that removes the toughest stains such as burnt

milk and ghee stains. This new formulation evolved through research and is now

setting benchmarks in tough stain removal. New Vim offers the consumer a

superior performance at a great value.

Vim is the market leader in the dishwash category. Today Vim is available in

powder, bar and liquid form. Vim continuously strives to innovate its products to

enhance the lives of its consumers. Whether it be through its new 'Stain Cutter'

formula in its Vim Bar or it's the stain busters in its powders, Vim stands for the

best quality in dishwash products.

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FOODS AND BEVERAGES

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FOODS AND BEVERAGES

1. ICE CREAMS:-

Cornetto

Kwality Wall's Cornetto - bite bite mein pyarLaunched in the year 1995-96, Cornetto is undoubtedly one of the most popular

ice creams in India. Positioned as the icon for romance and special moments - it

is targeted at young adults.

However, with its rich multi-sensory eat experience, it is overwhelmingly quoted

as the favourite of consumers across ages.

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Feast

Kwality Wall's Feast - feasting on 'the big “F” Launched in 1995-96, the Kwality Wall's Feast range of ice creams and frozen

desserts has been positioned as a “Youth ice cream brand with an attiTude.”

Over the years, Feast has expanded its 'chocolate only' portfolio to a more

diverse one by including refreshment products like Mango Zap, Calypso

Punch and Jaljeera Blast. This was in keeping in line with the varied need-

states of today's youth.

As part of Kwality Wall's endeavour to consistently reach out to the consumer

with new and exciting flavours, Feast has launched Feast Snacko. The stick

product is an excellent value for money proposition.

As part of Kwality Wall's endeavour to consistently reach out to the consumer

with new and exciting flavours, Feast is launching a new SKU, viz. Feast

Snacko. The stick product is expected to take the market by storm, as it is an

excellent value for money proposition.

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Continually connecting with today's youth, Feast remains the ice cream with . .

. The Big F!

MaxKwality Wall's Max - the 'masti' ice creamMax, launched in the year 1999 as the 'masti' ice cream, is targeted solely at

children.

All Max products are fortified with extra vitamins. Max Cups and Max 123 have

Vitamin A, Max Orange and Max Joos have real fruit juices and Vitamin C (a

single Max Orange candy offers a child 15% of his daily requirement of Vitamin

C).

Max says, 'Masti kar Befikar' and encourages all kids to go ahead and have lots

of fun!

Max has recently been extended as confectioneries (candies) - MaxMasti,

MaxMagik and ChocoMax.

Cornetto SoftKwality Wall's Cornetto SoftIn 2002, Kwality Wall’s is introducing a host of unique product innovations under

a new brand called “Cornetto Soft”. The new range includes a Super Cone (a

bigger soft cone- Vanilla and other flavours like chocolate, strawberry etc),

Strawberry Sundae Cup (Creamy tasty vanilla topped with rich strawberry

sauce), Chocolate Sundae Cup (Creamy tasty Vanilla topped with thick

chocolate sauce), Ripple Cones (Creamy tasty vanilla softy with strawberry or

mango ripples) and Nutty Delight (Creamy tasty Vanilla topped with thick

chocolate sauce and nuts, served in a cup.). The price ranges from Rs.7/- for a

Super cone to Rs. 20/- for a Nutty Delight.

At a Kwality Wall’s kiosk, the consumer will experience innovative promotions

and themes that will take place regularly at and around the outlet kiosk, it will be

seen as a ‘cool place to hang out and a great place to eat out.’

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Kwality Wall's has a perfect blend of affordability, hygiene and taste that will win

over the consumer.

Kwality Wall’s Softies are untouched by human hands. The first hand that

touches the product is the consumer's. Kwality Wall's uses a pre-mixed liquid

produced and sealed at the factory and is untouched by the operator at the outlet.

The advanced Tamper Proof technology & the sophisticated softy dispensers

make sure that hygiene is given the highest priority. The ingredients are

pasteurized and homogenized, which ensure true quality & consistency of the

end product.

As a result Kwality Wall’s is the only one offering a superior and completely

hygienic product.

Kwality Wall's aims to ensure that the consumer gets a world class product

delivered to meet local taste requirement under strict Unilever standards of

hygiene and at a great price!

Kwality Wall’s Black Currant Sundae Irresistible international flavour now available in India The exotic dessert, Kwality Wall’s Black Currant Sundae, launched in India, has a

mouth-watering black currant sauce and creamy vanilla. The Black Currant sauce

has been specially formulated by Kwality Wall’s, to offer a truly delectable dessert

for its consumers, that leaves them yearning for more.

Black currants are grown in Europe, USA and Chile, rich in vitamin C and

minerals, they are used to make exotic jellies, jams, drinks and sauces the world

over.

There is an even more interesting history to sundaes. In the 1980s, when this

delightful dish was first put together in the US, it was against the law to sell soda

and consequently, ice-cream sodas on Sundays. So the trend of serving ice

cream with sauces and toppings instead of soda began. Soon, ice-cream

sundaes became so popular that people opted for this dessert on weekdays as

well.

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Kwality Wall’s Sundaes were launched in 2001 in India in Chocolate,

Strawberry and Mango flavors. These products were a phenomenal success and

are now being taken to the next level with an exotic Black Currant sauce and

Black Currant Dry Fruit pieces.

In a day and age, when families hardly find time to spend together, Kwality Wall’s sees its Sundaes as an offering, which helps bring families together for

fun and enjoyment. 10 p.m. would henceforth stand for Kwality Wall’s Sundae time!

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BEVERAGES

Brooke Bond 3 Roses - has colour, taste & strengthBrooke Bond 3 Roses, a premium dust brand was launched in 1978 in the

heartland of coffee drinking households in southern India. The brand can

rightfully claim credit for creating a tea drinking habit amongst these households

through its highly successful positioning as the only tea with a perfect

combination of colour, taste and strength - the 3 most important attributes in a

cup of tea. Not surprisingly, this wonderful cup of tea came to be enjoyed by a

cross section of consumers giving it undisputed market leadership.

Since the turn of the millennium, the brand has taken a further leap by adding a

highly motivating emotional benefit - The Perfect tea for Perfect moments -

amongst couples. The first step towards appropriation of this emotional mind-

space started with a highly successful Perfect Couple search campaign, which

saw significant strengthening of affinity and disposition towards the brand. This is

being furthered by a new theme - triggering an even stronger emotive link with

the consumer.

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Brooke Bond Red Label - nation's cup of tea Brooke Bond Red Label Tea was launched in the year 1903, which makes it one

of the oldest brand of tea in the country. It also has the distinction of being the

largest brand of tea in India and has a truly national presence. For years, Red

Label has stood for good quality tea and it can be easily called as one of India's

favourite tea brands.

The brand was relaunched in the year 2000 with a new product formulation,

wherein long Assam orthodox tea leaves were added to the base CTC tea to

deliver enhanced taste. These are referred to as 'Assam Super Tasters' in the

brand's communication. The new campaign highlights the irresistible taste of the

new Red Label Tea through executions that revolve around a very catchy base

line 'Don't Mind - Ek Cup Aur' - Ready for another cup!

Brooke Bond A1 - 'kadak chaiBrooke Bond A1 was launched in the year 1995 as HUL's offering in the discount

segment of tea. It is targeted at converting consumers of loose tea and local

packet tea players.

Brooke Bond A1 has region specific blend formulations to meet the needs of the

consumers in different regions of India.

The core proposition of the brand is 'Strength'. The benefit to the consumer is

'Strong tea that charges my confidence'. Brooke Bond A1 Power, a variant of Brooke Bond A1, is fortified with Vitamins. It

has initially been launched in Karnataka in March 2001.

Brooke Bond A1 Power, similar to Brooke Bond A1, has the consumer offering of

"Strength" but has Vitamins as a reason for the consumers to believe in the

proposition. The choice of vitamins has largely been based on evidence of

deficiency among the target group.

Targeted at lower middle class consumers, this brand variant is expected to gain

from local players and upgrade Mother brand Brooke Bond A1.

Brooke Bond Taj Mahal Tea - 'Wah Taj!'Taj Mahal Tea was launched in 1966 as a premium CTC leaf brand. Over the

years, the brand has fulfilled its promise of India's best tea. The tea is carefully

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chosen from a thousand teas from the best gardens of Assam to give it an

exquisite aroma and taste. It is endorsed by Ustaad Zakir Hussain who

personifies the brand in all respects.

The brand has constantly led by innovation, whether it be the first tea bag in the

country in 1979 or the patented 'vacuum pack', which keeps the great quality

intact. No wonder tea lovers across the country start the day by saying 'Wah Taj!'

Lipton Taaza - the fresh cup of teaLipton Taaza was launched in 1988. The strategy for the launch was to convert

loose tea users into packet tea. The brand was launched in a poly pouch format

designed to preserve the freshness of tea. The name Taaza signified 'fresh tea'.

The core benefit was refreshment. Taaza pioneered the format of pouches on a

national scale.

Lipton Taaza is one of the largest tea brands in the country, specially in the Hindi

belt.

The core proposition of the brand now is 'Fresh Taaza tea refreshes like no other tea can.' The brand commercials in the past have shown fresh tea being

selected from select gardens and this in turn leading to amazing refreshment.

Lipton Yellow Label - the global cuppa Lipton Yellow Label is Unilever's global tea brand and sells in many countries

across the world. It has pioneered the growth of tea through non-traditional

formats like Tea Bags and more recently Ice Tea.

Lipton Yellow Label is a brand for young minded people and offers an option to

tea lovers to enjoy their favourite drink in an exciting and refreshing way.

Brooke Bond Bru - the instant coffeeBrooke Bond Bru, launched in 1969, created history in the first year of launch by

growing to a record market share of 21%. Ever since, it has grown from strength

to strength and is now the single largest brand of Instant Coffee in India, with a

dominant presence in South India (which accounts for 65% of the All India

market).

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Initially positioned on the generic benefit of convenience, it was communicated in

the late 70s as 'the favourite of coffee lovers in the South.' This evolved in the

80's to the well known 'Closest in taste to Filter Coffee' platform. Bru is one of

the most salient Packaged Mass Consumption Goods (PMCG) brands, especially

in Southern India.

Bru has been instrumental in virtually creating the entire Instant Coffee category

as it exists today. It has been at the forefront of most innovations in the Instant

Coffee category - whether in coffee-chicory blends, refill packaging, vending

operations, or more recently the Low-unit-price packs. Bru's popularity cuts

across all sections of society - income, townclass and states, the name being

synonymous with Instant Coffee in all the Southern geographies.

Lipton Green Label - the champagne of teasLipton Green Label is the only popular orthodox tea in the country. Chosen from

the best leaves of the best Darjeeling Gardens, the tea has an aroma and flavour

that testifies to its pedigree. The tea is packed in a special toptainer that is both a

container and a dispenser.

Lipton Green Label tea is best when the leaves are brewed in a pot of hot water

to keep the flavour intact. More and more people are discovering the delight of

true orthodox tea through Lipton Green Label.

POPULAR FOODS

AnnapurnaAnnapurna - flowering of a flour Hindustan Lever's Annapurna Fortified Atta, developed through using agrarian

and processing technologies, is extracted from premium quality food grains. Its

richness of nutrients is not just entirely retained, but boosted through fortification.

The iron in it, in particular, addresses a deficiency that 6 out of 10 Indians suffer

from.

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A special grinding technique ensures that Annapurna absorbs more water when

kneaded for chapatis. This helps keep the chapatis soft, fresh and tasty for far

longer.

In other words, a brand that supplies much of the daily nutrients an Indian

consumer need.

CULINARY PRODUCTS

KISSANKissan - the taste to grow up withAcquired by Hindustan Unilever Limited in 1994, the Kissan category consists of

'deliciously holesome products for kids to grow up.'

The Kissan range consists of ketchup and other sauces, puree, jams, squashes

and ready-to-drink products. For mothers and children, Kissan is today one of the

most trusted processed food brands in the country.

OILS AND FATS

DALDADalda - for healthy cookingLaunched in 1937, Dalda Vanaspati has been the Indian housewife's trusted

companion for tasty, healthy cooking. Considered as an embodiment of mother's

love, Dalda has always been associated with purity, quality and trustworthiness.

In 2000, Hindustan Lever launched Dalda Activ, a healthier version of Vanaspati,

primarily because it contains twice the amount of healthy fat (poly unsaturated

fats) and also actively reduces the unhealthy fat (saturated and trans fat). As a

result, food cooked in Dalda Activ does not congeal on cooking and, hence, no

layer of fat is formed.

The product was developed through the process of interesterification, a fat

modification procedure, which changes the melting and crystallisation properties

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of the fat. The process has been perfected for Indian conditions at Hindustan

Lever's Foods Innovation Centre.

In 2001, Hindustan Unilever launched Dalda Classic, which with its butter aroma

is targeted at consumers in the South.

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WATER PRODUCT

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WATER PRODUCT

Pureit - The world's most advanced water purifier

Hindustan Unilever Limited has launched Pureit, the most advanced in-home

water purifier in the world.

It is the only purifier that gives you water that is ‘as safe as boiled water'™

without boiling, and without needing electricity or continuous tap water supply.

This is why it is the most advanced in-home water purifier in the world. Pureit

gives water that is free from harmful viruses, bacteria and parasites because it

has a Pureit Germkill Battery™ that is a combination of unique technological

breakthroughs. Therefore, it provides 100% protection from all water related

diseases like jaundice, diarrhoea, typhoid and cholera. Pureit also removes

pesticide impurities, that may be present in drinking water. Pureit meets the

germkill criteria of the toughest regulatory agency in the USA, the Environmental

Protection Agency (EPA), for protection against harmful viruses, bacteria and

parasites, and getting microbiologically safe drinking water.

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EXPORTS PRODUCT

56

EXPORTS

HUL Exports

Today, HUL is one of India’s 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 endeavour 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 HUL to position itself as a key sourcing

hub for Unilever and also become a preferred partner for Global customers in

categories we operate.

HUL’s 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 .

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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, North America etc

A brief on HUL's Exports portfolio

HPC:

The categories under HPC include products in Skin care, Oral care,

Pears ,Personal Wash & Lakme range.

- Skin Portfolio includes Mass & Masstige Skin (Cream & lotions under Fair &

Lovely and Dove brands), Shampoos and Conditioners (under Sunsilk

brands), Vaseline & Talc (under Ponds brands). In the past the focus market

was in Middle East and Asia, which is now slowing changing with current

exports to European countries and robust plans to source different products to

US in the near future.

- Oral Care consists of Tooth Paste and Tooth Brush (under Pepsodent,

Close-up, Mentadant and Signal brands). The exports are to Asian and

European countries.

- Pears Category consists of Bars, Hand Wash, Body Wash and Shower Gel.

Pears is being sold globally including to North America / UK to the GCC /

African countries extending up to Singapore and Australia. While the bar

remains the most popular product, the brand has now extended to hand wash,

shower gel, body wash and face wash. Currently Pears is celebrating its 200

year anniversary which shows the rich heritage and the strong brand equity it

enjoys over generations.

- Personal wash category predominantly consists of Lux, Fair & Lovely Soap,

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Lifebuoy Hand wash

- Lakme Products are mainly exported to the countries with Indian Ethnic

population or to geographies where the brand enjoys strong equity. The

markets include Nepal, Bangladesh, United Kingdom & Maldives.

F&B:The categories under F&B include products in Tea, Coffee & Processed

Foods range.

- Tea Category Includes: Tea Bags (includes Tea Bags, Flavored Tea Bags

and Square Tea Bags), Instant Tea, Bulk Tea & Packet Tea. The branded

packet tea, and instant tea are for Unilever's ready-to-drink tea business. The

branded teas are Brooke Bond, Brooke Bond Red label, Brooke Bond Taj

Mahal, Lipton, Lipton Yellow Label, Lipton Green Label, Lipton Brisk and

Lipton 3-in-1 premix.

- Coffee Category consists of Instant coffee & special coffee Beans (under

Bon and Bru brands). The focus market for Bon is CIS markets while Bru is

mainly sold to Ethnic markets / Indian diaspora world-wide. Both Bon and Bru

straddle the entire gamut of formats comprising of spray dried coffee,

granulated, freeze dried and pre mixes.

- Processed Foods categories include Fruit Spreads / Jams, Soup Powders,

Salt, Wheat Flour, Tomato Ketchup and Custard Powder. The branded

processed food items consists of Kissan, Knorr, Annapurna, Captain Cook,

Brown & Polson brands.

Marine Products:

HUL offers a comprehensive portfolio, ranging from Surimi, Crabsticks to

Shrimps and several value-added products. Among its customers is Icelandic,

the world's third largest seafood company. In addition, HUL has also become

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a part of Unilever's supply chain in seafoods for Europe too. HUL's Marine

Products brands are Ocean Diamond, Ocean Excellence, Shogun, Hima,

Gold Seal, Tara and Prima.

Rice:

The categories are Basmati Rice and Basmati Rice-based ready-to-eat rice

meals. The brands are Gold Seal, Indus Valley, Rozana and Annapurna.

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PRESS RELEASES

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PRESS RELEASES:-

India can create 70 million new jobs and add 2% annually to GDP growth by global sourcing of manufactured exports, says M.S. Banga HLL gearing up for billion-dollar sourcing business out of India

MUMBAI, June 26, 2002: India can double its exports growth rate to 20%,

adding 2% to GDP growth rate annually and creating 70 million new jobs in the

private organised sector over 10 years, if it leverages its potential to become a

preferred sourcing centre for manufactured exports, Mr. M.S. Banga, Chairman of

Hindustan Unilever Limited (HUL), said here today.

Noting that India has already demonstrated the potential to become a global

sourcing centre for services, Mr. Banga highlighted, “However, India cannot rely

on services alone to drive exports. Manufacturing constitutes 72% of global trade

worth US$ 6 trillion. For exports to be a major platform for growth, it is imperative

that we focus on and drive manufactured exports.”

Mr. Banga said that HUL, already one of India’s largest exporters, has decided to

make sourcing an integral part of the business strategy. “Sourcing already

accounts for about half of our total exports of Rs.1500 crore. HUL’s vision is to

build a billion-dollar sourcing business out of India,” he said. Mr. Banga was

addressing HUL’s annual general meeting.

Five initiatives: He said that India must move quickly to pre-empt other countries

in the race for global sourcing, and suggested five immediate initiatives, that

Government and Industry will have to take. This will help overcome India’s

disadvantages, in cost, image and process competitiveness, vis-à-vis other low-

cost nations, like China, Korea, Thailand or Mexico, which are already ahead in

the race to become global sourcing centres in manufactured exports.

The five initiatives are: identifying, nurturing and promoting 2 or 3 ‘Star’ sourcing

sectors; creating ‘Virtual’ Special Economic Zones; completely privatising

Mumbai and Chennai ports; driving industry productivity and process excellence

through the Total Process Management (TPM) tool; and an enabling fiscal and

regulatory Regime.

‘Star’ Sourcing Sectors: Mr. Banga said that, within the country’s portfolio,

Pharmaceuticals, FMCG and Processed Marine products have the potential to

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become ‘Star’ sourcing sectors in the immediate term. “There is a rationale for

the choice of these sectors. The US FDA requirements are stringent for pharma.

Consumer involvement in food items is high. FMCG items are items of mass

consumption. If we are able to successfully create a niche for ourselves in these

sectors, it will give the ‘Made in India’ brand for manufactured exports a big

boost, which we can then extend to other sectors,” he said.

To nurture the ‘Star’ sourcing sectors, he called for the establishment of a quasi-

government Apex Sourcing Body, with strong linkages to both the Commerce

and Finance ministries, and independently managed by professionals deputed

from Industry. “A good role model is NASSCOM, which has played a crucial role

in positioning India as a global IT services sourcing base. Manufactured goods

sourcing too will gain from a similar organisation, whose focus will be on building

the India Inc. brand through some key activities - attracting lighthouse global

companies to establish manufacturing bases in India; continuously highlighting

legal and regulatory changes required by the sector; and finally, being a

knowledge repository for information and research on the sourcing potential of

India,” he said.

‘Virtual’ Special Economic Zones: Welcoming the Special Economic Zone

(SEZ) legislation, he pointed out that to enjoy the benefits of this legislation, a

company needs to be physically located within the SEZ. This would require an

exporter to spend resources in relocating facilities. This might not be feasible for

many industries, which need to be located near the source of raw materials (e.g.,

steel) or skilled labour pools (e.g., diamonds). Secondly, an SEZ will take two to

three years to begin functioning with the full infrastructure in place.

Therefore as an interim action, he suggested the establishment of ‘Virtual SEZs’

(VSEZs). A VSEZ is similar in concept to the current EOUs. Any unit that exports

more than 50% of its production in a block of three years, wherever it is located,

will be a deemed VSEZ, enjoying all the benefits available to an SEZ, including

fiscal advantages and freedom from administrative procedures. To begin with, the

VSEZ facility could be extended to those companies with an export of Rs.100

crore per annum, which would kickstart sourcing without waiting till the SEZs are

fully established.

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Privatisation of Mumbai & Chennai ports: In the light of the encouraging

experience of privatising three terminals in Chennai and Mumbai ports, Mr.

Banga called for the complete privatisation of these two ports. This will not only

enhance efficiencies and bring down costs, but also earn Rs.2000 crore, in

addition to the annual revenue streams. Besides establishing world-class

processes and systems in at least two ports, this will serve as a model to rapidly

privatise other ports as well.

Productivity & process excellence: Highlighting the need for industry to

develop an obsessive commitment to productivity, he suggested the adoption of

Total Process Management (TPM) as a tool. “A TPM factory is unbelievably

superior to a non-TPM one – I have seen this for myself. On an average, HUL

has doubled productivity through TPM and, in some cases, taken it up to three

times the original levels. We have now adopted TPM in our offices and sales

processes as well,” he recounted. He suggested TPM training to be included in

ITI and Engineering education, which will provide more than 200,000 TPM-

trained personnel annually to industry. He also proposed a JIPM (Japanese

Institute of Plant Management) certification programme for exporters along the

lines of SEI-CMM for IT services companies, which will add considerably to the

image of India’s sourcing.

Fiscal & regulatory regime: Mr. Banga pointed out that the approach to the

regulatory regime for exports should be such that it actively enables exports as a

growth driver. He has suggested Comprehensive VAT for exports and

Simplification of Transfer Pricing rules.

Pointing out that 140 out of 147 countries in the WTO already have

Comprehensive VAT, he strongly suggested immediate introduction of

Comprehensive VAT for the exports sector, which would also provide useful

learnings for implementation subsequently in the domestic sector. On transfer

pricing, he said that price fixation in international markets is subject to many

variables, all of which may not be common across firms, industries or, indeed,

across time. Therefore, transfer pricing rules must be less formulaic. A simple

solution is to increase the margin for variance from 5 to 15 %, and simplify the

administrative and documentation procedures. In order to learn, the simplified

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regime could first be implemented for imports, and then extended to cover

exports.

Mr. Banga concluded, “India must move quickly to pre-empt other countries in the

race for global sourcing. Government and Industry must work together to

dramatically improve India's Cost, Image and Process competitiveness. The time

is right for us to move Exports to the top of the economic agenda and make it a

national priority.”

Kwality Wall's makes its consumers 'Ek Din Ka Raja'Largest consumer promotion ever by any ice cream brand!New Delhi, March 14, 2002:Kwality Wall's, the market leader in India, has today

announced the launch of its most exciting consumer promotion ever. This

promotion, called 'Ek Din Ka Raja' is the biggest consumer promotion by any ice

cream brand across the country. The 'Ek Din Ka Raja' promo entitles 10 lucky

consumers to spend Rs.10 lakhs in One Day's shopping with their family in

Mumbai! They can choose to spend on consumer goods such as cars, home

appliances, furnishings, garments, etc. - but within 24 hours!

This 'dream-come-true' offer for the ice cream lovers comes at very affordable

prices. All that one needs to do is buy Kwality Wall's range of products - every

pack has a certain number of points on it. The consumer needs to collect

wrappers / lids upto 150 points to be eligible to participate in the 'Ek Din Ka Raja' promo. On collection of the same, they need to go to a redemption centre where

they will be given a scratch card. (Call centres have been set up at each of the

major cities, which will direct consumers to their nearest redemption centres as

well as answer all their queries.) Upon scratching the cards, 10 consumers can

win the mega prize of 10 lacs and shop till they drop with their families in

Mumbai. There are over one million assured prizes for all who get a scratch card

- important to note that every scratch card has a guaranteed prize (there are no

try agains!)which is not very commonplace for such kind of promotions. The other

prizes include microwave ovens, walkmans, gold plated watches, jigsaw puzzles,

video games, fun books, zoomerangs etc.

The mega prize of EDKR entitles the consumer (with his family - upto 4

members) to be flown into Mumbai with all hospitality taken care of in royal style!

They will be given a chauffeur driven car, two riders and a day to go on their

dream-shopping spree. The winners will get to shop at five popular categories

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where we are associating with the best of brands in each category - BPL,

Hyundai, Tanishq, Westside, and Wipro.

"The Ek Din Ka Raja promotion is an effort by Kwality Wall's to connect to our consumers in a more personal way - we have given them offerings that they love - and now we are giving them something that all families love doing together - shopping. The time limit of one day makes this promotion very exciting and different from all others. This promo, we are confident, will go a long way in strengthening the perception of Kwality Wall's as being a brand that emotes togetherness, fun, sharing and laughter," says

Mr J H Mehta, Executive Director - Ice Creams, Hindustan Lever Limited.

The 'Ek Din Ka Raja' consumer promotion will be supported extensively by

multimedia communication tools - in what we believe is going to be one of the

biggest and certainly most innovative media support for any consumer promotion

seen before in the country. Apart from this we have an exclusive tie-up with Sony

TV and Indiatimes.com As part of these tie-ups, the consumers will also get to

play EDKR even if they have missed out while "scratching". We will also be

reaching over 20 lac consumers directly as part of our extensive consumer

contact programme. In short, ensuring that the excitement of the promotion

reaches one and all across the country and becomes the new mantra for families

wanting to shop together! After all - as someone said 'The family that shops together - stays together!'

About Kwality Wall'sKwality Wall's, a brand of Hindustan Unilever Ltd, currently commands a

marketshare of more than 50% of the organised Indian ice-cream sector. Kwality

Wall's has combined the state-of-the-art technical know-how of Unilever-- the

global leader in ice cream products--with a deep insight of the Indian market, to

deliver a range of superior quality products under its international brands. It has

recently revamped its complete brand portfolio and brand proposition in line with

HLL's Brand focus exercise. The essence is captured in the new baseline "Ho jaaye Dil ka Connection..." a proposition which captures the fun of bonding

between families and friends.

And don't forget, the family that eats together, shops together.

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Kwality Wall's launches Super CornettoExotic flavours and a core of sauce in delicious new conesBangalore, March 2002: Kwality Wall's is all set to take the Indian ice cream

market by storm with the launch of Super Cornetto. To the existing range of

Chocolate, Butterscotch and Strawberry cornetto, the Super Cornetto range

comes in two enticing combinations - Jamaican Magic and Hawaiian Bliss. The

product has a core of luscious sauce that runs right through the cone, and it has

beautiful rosette decoration on the top. Once again Kwality Wall's has introduced

an exceedingly innovative product into the ice cream market.

Jamaican Magic is an exotic combination of Rum & Raisin + Coffee flavours with

a core of chocolate sauce cone topped with nuts. Hawaiian Bliss is a delicious

combination of Blackcurrant and Strawberry flavours with a strawberry sauce

core and cherry toppings. Both the Super Cornettos which are much bigger that

the current product are priced at Rs 30/-.

Cornetto has for many years been considered to be the icon of ice cream industry

and the best cone not only in India, but abroad as well. It stands for romance and

togetherness and appeals to young adults. It is now extended into an exotic,

international offering Super Cornetto - which speaks for your heart better than

any words can.

Says Mr J H Mehta, Executive Director, Ice-cream Division, HUL, "With Super Cornetto, we are giving the consumer a never-before experience in a cone with delicious flavours and a sauce flowing right through the cone. The Indian ice cream market, we believe, will be taken by storm by the Super Cornetto range and this will soon become a benchmark in pre-packed cones."The launch of the new Super Cornetto range is supported by a new television

commercial as well as outstanding outdoors and a press campaign. The

television ad, also features the new theme music for Kwality Wall's which is truly

excellent. This ad gives you that warm feeling inside and is likely to be

remembered as one of the all time favourite ads for 2002.

Hindustan Unilever Limited's (HUL) new businesses have made robust and

steady progress, all posting profitable growth. Lever Ayush, the Ayurvedic range

of personal care products, has gone national.

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HUL launched Lever Ayush in May 2002. It is for the first time that rigorous

testing procedures of the pharmaceutical industry have been applied to Ayurvedic

products.

Mumbai, October 09 th 2002 Pepsodent, Hindustan Unilever Ltd's leading oral care brand, today

announced the launch of Pepsodent Dental Insurance, a first of its kind

initiative in the oral care category in India. Undertaken through a

partnership with the New India Assurance, India's largest General

Insurance company, Pepsodent now offers its consumers free dental

insurance of Rs. 1000/- on purchase of any pack of Pepsodent.

Under this initiative Pepsodent offers its consumers insurance cover

against expenses for the extraction of a permanent tooth or teeth due

to severe Caries and Periodontitis including cost of medication in

relation there to. Caries and Periodontitis are two of the most

widespread dental ailments in India.

Announcing the launch of Pepsodent Dental Insurance Pradeep

Banerjee, Category Head - Oral Care, HLL, said, "Pepsodent Dental

Insurance is a unique concept and first of its kind in the Oral Care

category in India. The initiative not only strengthens Pepsodent's

proposition of being a 'germ-protector' but also displays our

commitment towards improving oral hygiene for our consumers."

Elaborating further on the concept of Dental Insurance, Pradeep said

"Pepsodent Dental Insurance is a unique concept in this category and

will further strengthen the equity of Pepsodent in the minds of the

consumers."

Insurance cover under Pepsodent Dental Insurance will be provided for

one year, which comes into effect after a period of six months from the

date of issue of the Pepsodent Dental Insurance Certificate. Pepsodent

Dental Insurance forms will be soon available in all Superior Pepsodent

packs of 100 and 200 gms as well as select retail outlets. The company

also plans to make the forms available through advertising in the print

media starting November.

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Mumbai, January 16, 2003In a path-breaking tie-up, two FMCG leaders, Hindustan Unilever Ltd.

and Pepsi Foods Pvt. Ltd. today formed an alliance in India to jointly

market through a vending format a full range of hot beverages and soft

drinks from their portfolio of world class brands.

HUL brings to the alliance a well established presence and brand value

in hot beverages, outstanding product development and backward

integrated sourcing capability, expertise in vending and an extensive

institutional channel base.

The partnership leverages each other's strengths with an unbeatable business

model that creates a powerful distribution base to market a unified portfolio of

popular hot beverages and soft drinks through a combined fountain, vending and

institutional initiative. The area of collaboration for these two organisations will be

in vending hot tea and coffee along with soft drinks across the country. The

alliance will make available leading brands of the two FMCG giants - Lipton, Taj

Mahal, Bru, Pepsi Cola, 7Up, Mirinda and other popular carbonated soft drinks

through vending machines and fountains.With this alliance, HLL & Pepsi venture

into offering hot beverages through the Pepsi distribution system for the first time

in the country as part of their strategy to infuse new growth in the entire category

of liquid refreshment beverages

HUL remains the largest spender in terms of total outlayHindustan Lever retains its position as the largest spender in the sector with its

annual advertisement expenditure in 2002 at Rs7.2bn. Are you surprised at the

figure?. Don’t be. Just go back to your television set and count the HLL product

ads Vs other company product ads tonight. On an average if you see 10 ads, you

will find that atleast 5 out these are of HLL products.

HUL jacks up advertising spendAdvertising and sales promotion expenditure of the fast moving consumer goods

giant (FMCG) Hindustan Unilever soared to a record Rs 823.82 crore during the

year ended December 2002.

In the previous fiscal, the company had spent Rs 696.58 crore. The spending on

advertisement sales promotion, which is up 18.27 per cent in 2002, is considered

to be on the high side as FMCG companies are facing acute demand recession.

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The fierce competition among all personal care companies, particularly to

maintain market shares in shampoo, toothpaste, detergent bath-soap and hair-

dye, has compelled HLL to go for large ad spending.

In 2004, the spending on advertising accounted for 70.19 per cent of the net profit. In 2003, ad spend accounted for 63.17 per cent of the net profit and in

1998 it was 68.96 per cent of the net profit. The company's advertisement spend

accounted for 83.06 per cent in 1997.

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SWOT ANALYSIS

71

SWOT ANALYSIS:-

STRENGTH ENJOYED BY HUL HUL distribution network is one of the best in the country this is the key

strength converted to the company.

Research & Development for improvement of products, technology innovation

in the production process is another major strength of HUL.

Very large spectrum of well establishes brands ensure in long run growth and

above average returns.

Economics of scale and economies of scope through large size and

diversification.

Technologically and operational support from the parent company i.e.

Unilever.

Weakness Suffered by HUL

Inappropriate diversification resulting in higher prices (because of high variety

cost is higher).

Very complex organization resulting in role conflicts.

Opportunities Offered by Environment: Very large population of India is tremendous opportunity for Fast Moving

Consumer Goods (FMCG).

Competitor effectiveness to produce high quality, low cost produces is poor.

Most of the competitors are small in size that’s why the cost of production is

high.

Income level of customer is steadily rises there by offering by an opportunity

to sell branded products as against unbranded products.

Stable, legal, political environment that offers good potential for growth.

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Threats Faced by the HUL:

One of the major threat the HUL is facing is from smaller companies

producing smaller companies producing products similar to HUL because the

production process is not highly technically.

Most of the product of HUL are by nature low cost items therefore the risk

involved on the part of customer is less this results in brand loyalties nor

sustainable in long run.

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RESEARCHMETHODOLOGY

74

METHODOLOGY

The information obtained for the study is from secondary data sources. Secondary data

comprises of information obtained from annual reports, journals, brochures of different

FMCG company’s. It also includes organizational manuals and other important

documents maintained and published by various FMCG companies.

It also includes information collected from websites, business magazines, business

newspapers etc. Moreover it also contained information’s collected from the various

pamphlets published by different FMCG companies.

RESEARCH METHODOLOGY

An Introduction

Meaning of Research

Research in common parlance refers to a search for knowledge. One can also define research as scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. Redman and Mory define research as a “systematized effort to gain new knowledge”. Some people consider research as a movement, a movement from the known to the unknown. It is actually a voyage of discovery. In short, the search for knowledge through objective and systematic method of finding solution to a problem is research.

Objecive of Research

The purpose of research is to discover answers to questions through the application of scientific procedures. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. ThoughEach research study has its own specific purpose, we may think of research objective as falling into a number of following broad groupings:

1. To gain familiarity with a phenomenon or to achieve new insights into it (studies with this object in view are termed as exploratory or fomulative research studies);

2. To portray accurately the characteristics of a particular individual, situation or a group ( studies with this objest in view are kown as descriptive research studies);

3. To determine the frequency with which something occurs or with which

75

it is associated with something else ( studies with this object in view are known as diagnostic research studies);

4. To test a hypothesis of a causal relationship between variables ( such studies are known as hypothesis-testing research studies)

RESEARCH PROCESS The typical research process is succinctly represented in Scientific research

process has typically the following stages :

Problem identification : Sources of a research problem are : (1) A manager

who is faced with a problem to be solved or who needs improvement in some

aspect of his decision – making. (2) Research Literature, consisting of these,

research journal articles, books, general observations in conferences and

seminars, and opinion of experts in the field of interest. (3) Considerable personal

experience of the above researcher in the field of research interest. (4) A

scientific observation of a phenomenon or a managerial set up.

In problem identification (a) the problem faced in practice by a manager or

organization is translated into a research problem or examined for application of

standard methods of solution available, or (b) inadequate treatment of a problem

is improved, or (c) new problem ideas are creatively generated.

Research problem definition : The tentative and general statement of problems

obtained in the identification phase are converted into researchable questions

and propositions. Clear and unambiguous statement of the problem are made

and the information required for research is stated.

Theoretical framework : Variable required for solving the problem are identified,

partly from literature and partly by the researcher for defining the problem. The

problem is related to the existing research – theories, constructs, and hypothesis

in a theoretical framework that will ensure ste-by-step progress of knowledge (as

in pure research) or a strong basis for the current problem solving (as in applied

research).

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Research planning (design) : This involves the following steps : (i) Determining

the type of research to be carried out for data collection – secondary data,

experiment, ex post facto, or model building (ii) Selection for the measurement

and scaling of the variable that is, whether questionnaires, or observations or

interview techniques are used ; (iii) Selection of the representative sample :

specification of how many respondents, and what kind of respondent or objects to

measure ; (iv) Selection of the appropriate method/techniques of analysis of

data ; and (v) Preparation f a research proposal. In addition to the above steps in

research design specification of the time schedule of research, cost estimates

and usefulness of the research are summarised in a research project proposal.

This serves as a mean of communication to the sponsorer or the administration

of a university for obtaining funds or approval.

Execution of research study : Data is collected as per the sampling plan using

the instrument developed as per the specification in the design phase.

Data preparation and analysis : The raw data collected in the earlier step is

converted into data usable for research by carrying out coding, transformation,

and performing descriptive analysis, as required. This converted data is used for

verifying hypothesis, deriving significant relationships, or testing models, as

required, and inferences are drawn from the study and results are analysed.

Reporting results : The results obtained in the research are presented in the

form of a written report, thesis, or in an oral presentation.

The research process outlined above requires substantial information about the

particular situation and the decision-making system. However, very often the

manager takes decisions with incomplete knowledge of the situation. The

incompleteness of knowledge is either due to a lack of understanding of the

system under his control or an inability to recognise a possible course of action to

solve his decision problem. In the former case, there is a need for carrying out

research to enhance his knowledge and understanding of the system. This would

be the domain of pure research. In the latter case, the identification of a new

course of action, which was not known to the manager earlier, would be the

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researcher’s objective. This falls under the category of development research

according to Ackoff (1962).

RESEARCH DESIGN The research design phase deals with the detailing of procedures that will be

adopted to carry out the research study. The kind of research that is carried, out

whether the study is carried out in the field or in the laboratory, are decided. The

details of data collection procedures and the schedule of analytical procedures to

be used in order to accomplish the research objectives (set in the earlier stages

of research process) are also dealt with in research design.

More explicitly, the designing decisions happen to be in respect of:

What is study about?

Why is the study being made?

Where will the study be carried out?

What types of data is required?

Where can the required data be found?

What periods of time will the study include?

What will be the sample design?

What techniques of data collection will be used?

How will the data be analyzed?

In what style will the report be prepared?

Classification of Designs There are many types of research designs defined in research literature. The

definitions of research design suggest that the researcher faces a number of

crucial design choices. These can be summarised in a categorisation of research

design types, but unfortunately there is no satisfactory single classification.

Various writers on research advance different classification schemes, some of

which are given below :

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The experimental, the historical, and the inferential (American Marketing

Association).

Exploratory and descriptive designs that permit inferences about

causality (Sellitiz, Johada, Deutsch, and Cook).

Experimental and ex. post facto (Kerlinger).

The historical method, descriptive method, and case and clinical studies

(Goode and Hatt).

Sample surveys, field studies, experiments in field settings and

laboratory experiments (Festinger and Katrz).

Exploratory, descriptive, and causal (Green and Tull.)

Exploratory and conclusive research. Conclusive research, in turn,

consists of descriptive studies (case and statistical studies).

Experimental studies (Boyd and Westfall).

This Confusing array exists because research design is a complex concept,

which cannot be described in a simple manner. A more useful way of looking at a

classification would be to ascertain several dimensions of research design and

then place any particular research on these dimensions. Whitney (1958) gives

eight dimensions that are useful in classifying schemes, and these are :

1. The objective of research may be fact finding, exploring, or evaluatory.

2. The area of thinking would indicate the broad disciplinary area of the

research, like sociology, economics, management, and so on.

3. The locus of location is whether the research is primarily located in a

library, in archives and records, in a field of activity, or in a laboratory.

4. The relationship sought would include associative relationship,

comparison, or causal relationship.

5. The method of gathering evidence itself gives certain special features of

research. For example, a questionnaire may be used, as in the surveys,

interviews may be held, or participant observation may be used.

6. The kind of data collected profoundly influences the kind of research. The

data may be either qualitative, which may either allow generalisation on

arguments and description or it could be quantitative, which may lead to

rigorous initiative analysis and definitive conclusions.

7. The procedure may be comparison of data, descriptive measures of data,

or in-depth analysis of an incident, or it may be an evolution of a policy.

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8. The time dimension of study is important from the point of view of whether

the study is cross-sectional or longitudinal. In the first, the status of

systems or phenomenon is analyses, whereas in the second, the

development aspects of several variable of the phenomenon will be

investigated over time.

From the above it is clear that in a research design, a particular subset of these

dimensions may be emphasises and the other dimensions may have a minor role

to play or may not exist at all. The following is an example – library research, as a

precursor to hypothesis generation, using a perfunctory exploratory research

followed by either a laboratory experiment or a field in Fig. 2.2 Ex. post facto

research is shown at the start of the diagram, because most research starts with

an observation of some kind of the phenomenon. This observation is generally

backed up by the results of earlier research, hypotheses, experiment, historic

generalisation, and so fort. In a particular study, some exploration takes place to

relate this current research efforts to this earlier research through library search.

Working hypothesis generated either in exploratory or descriptive research is

treated in ongoing research (i) through hypothesis testing or a mathematical

model as an estimator, if the hypothesis is correlational or descriptive, or (ii)

through experimental research if it is casual.

If the system is small and the variables of casual relationship can be highly

controlled physically, a laboratory experiment is planned. If the physical control

can only be partial then a field experiment is proposed. If the control is infeasible,

or when a high degree of control is possible but the system is complex and

physical control becomes impossible, a model of the system is simulated on a

computer in an experimental framework to make inferences. Generalisations and

theory building go on on with the addition of new knowledge. The relationship and

the strength of a field of research develop and the research in that particular

area matures.

The two broad classifications of ex post facto and experimental are taken

primarily because they indicate the degree of control by the researcher and would

be the simplest in a classifiation scheme, that is, low and high. All the eight

dimensions, which have been earlier discussed, can be incorporated with this

classification and sub-classifications generated accordingly.

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A useful way of dipicting the two major research designs. ex post facto and

experimental, would be to indicate the importance or relevance of certain

research/ analysis approaches in these designs. This is shown in table 2.1

The table is self explanatory and gives a general understanding of the

attributes of research under the two board headings of ex post factor and

experiments. However, some comments are in order. (Further comments can be

derived similarly.)

RESEARCH DESIGN PROCESSOnce the objectives of research is clear, the research process enters the

research design phase. In this phase, the researcher will have to detail a plan in

which alternatives are going to be chosen at each of the following stages of

research.

1. Selection of the type of research.

2. Selection of the measures and the measurement techniques.

3. The kind and the number of subjects samples, that is, sample design.

4. Selection of the data collection procedures.

5. The selection of methods of analysis of data.

Selection of the type of research The type of research determines the strategy of collecting research data and

information directly from the respondents by one of the following methods.

Field survey research : In this method data/ information are obtained from a

general study of a large number of respondents (large sample), eliciting direct

response to specific questions. The response may be collected orally, in face-to-

face meetings, or remotely, through mail in written form or telephone in oral form.

The data obtained can be generalised and is representative of a large

population.. These surveys are generally carried out at a particular point of time

and are cross sectional. They produce ‘thin’ data (not deep). They are generally

used for descriptive analysis, correlational type hypothesis testing, and often for

exploration.

Field Study : This is an indepth study of a single respondent or a very small

number of respondents to obtain rich (deep) data of specific instance by using

methods of probing. It uses combinations of several data collection procedures. It

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provides greater understanding or specific instances but its results cannot be

easily generalised like research survey results.

Experiment : In an experiment there is controlled manipulation of one or more

independent variables so that its effects on one or more dependent variables can

be measured.

There are two major types of experimental designs.

1. Basic design : This considers the effects of manipulating only one

independent variable.

2. Statistical design : This considers the effects of manipulating

concomitantly more than one independence variable.

There are three kinds of experiments.

1. Laboratory experiment (Equivalent physical system) :- Experiments in

which manipulation of independent variables is carried out in an artificial

environment away from the location of phenomena.

2. Simulation experiments (Equivalent symbolic system) : Here, selective

manipulation of independent variable of a model of the (phenomena) system is

carried out.

3. Experiments in field setting : The manipulation of independent variable is

carried out in the natural setting but control is not as rigorous as in laboratory

experiments.

Experiments are used for finding cause-effect relationship. Which is one of the

major objectives of scientific research.

Mathematical models of phenomena : Another type of research assuming

great importance in management problems is the mathematical modeling

approach (as contrasted with statistical model used for analysis of research

data) in which the decision problem is represented by a mathematical model,

solution are obtained, and conclusions are drown from them. A high degree of

understanding of the systems is necessary to model them. In this sense, they are

close to experiments in traditional research. They are only representative and are

approximate, and they have to be verified, tested, and validated before drawing

any inferences from them. The data collection procedures are similar to the one

in other types. Secondary and primary data are used for modeling purposes.

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Types of Research

The basic types of research are as follows:

(a) Descriptive vs Analytical : Description research includes surveys and fact finding enquiries of different kinds.The major purpose of descriptive research is description of the state of affairs as it exists at the present. The main characteristic of this method is that the research has no control over the variables; he can only report what has happened or what is happening. In analytical research, on the other hand, the researcher has to use facts or information already available, and analyze these to make a critical evaluation of the material.

(b) Applied vs Fundamental:

Applied research aims at finding a solution for an immediate problem facing a society or an industrial/business organization.

Fundamental research is mainly concerned with generalizations and with the formulation of a theory.

(c) Quantitative vs Qualitative:

Quantitative research is based on the measurement of quantity and amount. It is applicable to phenomena that can be expressed in terms of quantity. Qualitative research is specially important in the behavioral science where the aim is to discover the underlying motives of human behavior.

(d) Conceptual vs Empirical:

Conceptual research is that related to some abstract ideas of theory. It is generally used by philosopher and thinkers to develop new concepts or to reinterpret existing ones.

Empirical research relies on experience or observation alone. It is data research, coming up with conclusions which are capable of being verified by observation or experiment.

FINDINGS AND ANALYSIS

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1)Age Group Graph

As we can see from the above graph, the people who are in the age

group of 21-28 years are the ones who are the maximum users of

Cosmetic. This segment is the one which gives maximum business

to the Cosmetic. This segment constitutes the young executives and

other office going people. They are 65% of the total people who were

interviewed. The next age group are the people who are 28-35 years

old. They are 20% of the total. They are those who are at home or

have small business units etc. And the next age group is the

youngest generation who are 15-21 years old. They are school and

college going students and carry Cosmetic to flaunt. They are 15% of

the total interviewed people.

2 )Occupation Graph

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As the above graph shows that 55% of the total people interviewed

are working. So, these people are the ones who are the maximum

users of Cosmetic. They are the young executives, managers, Tele -

callers etc. The next category is the households, who are either

housewife, home staying persons. They are 20% of the whole. The

next segment is the students. They are 15% of the whole. And 10% of

the whole is categories who are the professionals.

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Monthly expense graph

People on an average spend RS 500 per month as their Cosmetic

expense. 64% people spend this amount. 24% people spend RS 300

per month as their monthly Cosmetic expense. And the remaining 12%

had an expense more than RS 1000.

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LIMITATION

87

LIMITATION

Though HUL seems to be ruling the roost in various segments of

household goods industry, findings suggest that its marketing

strategies are not without loopholes. Let us have a look at these

loopholes or limitations in brief.

One very striking limitations is the fact that even though these

products with all-percasive marketing and distribution channels,

flourishing increasingly in different parts of the world there appears

to be a visible lack of channels providing them substantial access

to semi-urban and rural areas. In other words, the products of HUL

have a weaker grassroots bases.

The availability of these products to common people does not only

depend on marketing network, but also on the advertising

strategies adopted by HUL. On this count culinary products don’t

seem to offer much to create any stir and betray manifest upward

trends in terms of widening consumer base.

The pricing strategy adopted by HUL shows considerable

fluctuation, which has led the consumer base to remain almost

stagnant in many segments. Usually, the prices of these products

are too high to make these affordable to the common masses and

particularly those belonging to low-income groups. This

phenomenon seems to be most evident in culinary goods

segment, which constitutes the backbone of HUL’s industrial base.

Agricultural pursuits have not yet attained the status of industrial

activities to a considerable degree. So, the supply mechanism

adopted by HUL for the raw materials tends more often to suffer

from a kind of unpredictability syndrome in terms of communication

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and planning. On certain occasions, the readily available

agricultural input is too low to cater to the needs of manufacturers

because ‘cultivation for industrial production’ or ‘industry-oriented

farming’ is not popular concepts even today in many countries of

the world including India.

Though, the facilities of transportation and logistics for the supply

of raw material don’t lack substantiality as much in case of HUL as

most other players in the industry even HUL is not totally luinune to

the problems posed by it. On many occasions, transportation costs

are too high, which affect the overall pricing strategy adopted by

HUL.

HUL manufactures a large range of products along with those we

call culinary products. This diversification in products. But culinary

products are usually bracketed with other (major) products in case

of these companies. So, no serious or special attention is paid to

devising separate or exclusive strategies for these products. It

makes their brand name rather than considerations of their

qualitative excellence the most significant criterion for their survival

in the impredicable and at times, precarious situation of consumer.

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CONCLUSION

90

CONCLUSION

A look at the contemporary profit of the global industrial segment of

household goods brings it into clear focus that the situation prevailing

in major markets is very much in favour of HUL. The fact that should

be acknowledged on the basis of current trends betrayed by this

segment tells us that HUL veritably stand out as on indisputable

market leader in this field and is sure to surge way ahead of other

players in future. The competitive strength, strategic acumen and

ability to reach out for a considerably larger consumer base that the

company has been able to attain through the years since its inception

also point to this fact categorically.

An extremely pertinent views that emerges out of it amply suggests

that it is the dominance of HUL operating under the banner of

Unilever in most of the countries that contribute in a large measure to

the creation of a market situation in which consumers are nearly

forced to purchase their ‘choice’ at prices that might not be in

congruence with their speculations and calculative consideration of

affordability – something that largely determines the phenomenon

called consumer behaviour. It is absolutely doubtless to assume are

incomparable in term of their qualitative excellence.

It is a bit surprising to observe that HUL is the market leader even

though it’s capable of manufacturing and marketing a vast range of

products with an international consumer base. Moreover, the tie-up of

Prima India with HUL reflects that the latter is not unwilling to share

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its technological expertise and infrastructural contrivances with

others. So, inspite of the near monopoly situation caused by HUL’s

presence in the global market, it points to a healthy flexibility in the

company’s fundamental approach.

Another very striking aspect of HUL’s global marketing strategy and

operations, as it has been pointed out and dwelt upon in the present

study, is its enormous ability to capitalize on the resources available

to it. The company has had the distincting of taking determined steps

to maximize opportunities of image building in the global market. In

order to accomplish this task, the management of HUL is poised to

keep infusing new spirit in its HRM wing in order that it may veritably

serve as an instrument for proliferating marketing prospects for HUL

products. That way both internal and external marketing are taken

cognizance of with identical sense of concern. This approach draws

sustenance from the comprehensive international network of

overseas operation centres, associates, agents and allies.

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SUGGESTIONSAND

RECOMMENDATIONS

93

SUGGESTIONS AND RECOMMENDATIONS

As it is obvious from the study the products of HUL have approached

the high water mark of sale in the global consumer market. However,

there are genuine reasons to observe that they have yet to attain the

cutting edge status on many counts. In this regard a few suggestions

can be made to give the required boost to the marketing prospects of

HUL products. These can be summed up as follows:

An attempt should be made by HUL management to tap all the

potentials offered by the global market by devoting a more

substantial, efficient and better equipped resource base. This task

can be accomplished in the first place by implementing a stronger

and more ending distribution channel for various products so that

even those sections of consumers who are not accessible so

easily, can be covered with greater ease.

Efficient infrastructural base coupled with better and more

comprehensive advertising strategies should be resorted to;

though HUL is presently surfing ahead of others on the path of

taking some great initiatives it should be more concerned about it

for the purpose of corporate image building.

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Agricultural pursuits required to meet the demands of certain agro

based and culinary product segments should be more planned,

systematized, efficiently viable and less cost-effective.

The price structure for various products should be more within the

limit of affordability for consumers; the grassroots consideration in

this regard should not be ignored. Here, the policy of loco-centric

rather than uniform price structure would certainly be more

advantageous.

Industrial manufacturing units of these products should be set up

at places lying nearest to the places where sources and raw

materials for different products could be available in the easiest

possible way.

HUL should go for more planned and sensible marketing and

advertising strategies with a view to accomplishing the task of

global brand image buildings.

Hypermarketing and retailing network should get special

attention as vital components of HUL’s marketing policy.

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ANNEXURE

96

QUESTIONNAIRE. Name …………………………………………………………………..

. Date of Birth ……………………………………………………………

. Gender Male Female

. Address …………………………………………………………………

………………………………………………………………………….

. City …………………………….

. Pin code ………………………..

. Contact No. (S.T.D. Code) …………………………………………….

. E-mail ………………………………………………………………….

. No. Of Family Member

. Detail of Family Member:

Name Of

Family

Member

Relation Date of Birth Occupation

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1. Which company you would like to walk?

Reliance Fresh Sabka Bazaar

More Subiksha

*Give reason why you like any one

………………………………………..

……………………………………………………………………………..

2. More satisfaction in (your best company which provide satisfaction)

(a) …………………. (b)

………………………

3. Have you like home delivery?

Yes No

4. Distance of store from customer house?

0-2km 2-5km

5-10km >10km

5. Scheme, which you want

Discount Surprise Gift

Free Product All

*Depend on condition

6. Have you want to join loyalty membership of company:

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Regular Customer Yes No

Purchase in one month:

One time Two time Frequently

7. For office use:

Store Code

Store employee code

Data entry date

Assent Code

Scheme No.

To be subscribed by

8. What Margin you generally get in any product while selling?

a)5-10% b)10-20%

c)20-30% d)30-40%

9. Do you get the product easily from Distributor?

a)Yes b)No

10. What factor influence more to customer to buy product?

a) Price b) Packaging

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c)Utility d)Brand Image

11. Do BRAND EQUITY of any product helps in selling ?

a)Yes b)No

12.Is Wide Varity of product helpful to attract different segment ?

a)Yes b)No

13.Is customer get influence by displaying the MARKETING ELEMENT on shop?

a)No b)Normal

c)Little Bit d)More

14.Which type of promotional scheme influence the customer?

- a) coupon b) contest

c) price discount d) gift pack

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BIBLIOGRAPHY

101

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BIBLIOGRAPHY

Book Kotler P., (2000), Marketing Management, Millennium Edition,

Prentice Hall of India, New Delhi.

Magazines Business Today

Business World

Newspapers The Economic Times.

The Indian Express.

The Business Standard.

The Hindustan Times.

Internet website http://www.google.com/

http://www.indiainfoline.com/

http://www.hul.com/

http://www.unilever.com/

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