Company Profile

Type : Public company BSE:500696

Industry : Fast Moving Consumer Goods (FMCG)

Founded : 1933

Headquarter : Mumbai , India

Key people: Harish Manwani (Chairman), Nitin Paranjpe (CEO and Managing Director)

Products : Home & Personal Care, Foods, Water Purifier

Revenue: Rs 17873.44crore (US$ 3.97 billion) (2009-2010)

Employees : Over 65,000 direct & indirect employees

Parent : Unilever Plc(52%)

Website : w ww.HUL.co.in

Introduction to HUL

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company with a heritage of over 75 years in India and touches the lives of two out of three Indians.

HUL works to create a better future every day and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others.

With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pure it.

The Company has over 16,000 employees and has an annual turnover of around Rs.19, 400 crores (financial year 2010 - 2011). HUL is a subsidiary of Unilever, one of the world’s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about €44 billion in 2011. Unilever has about 52% shareholding in HUL

Mission Unilever mission is to add vitality to life .They meet everyday needs for nutrition hygienic and personal care with brands that help people feel good , look good and get more out of life.

Vision

We're constantly developing our brands and products to keep pace with the changes inconsumers’ lives

A clear directionThe four pillars of our vision set out the long term direction for the company – where we want to go and how we are going to get there:

We work to create a better future every day We help people feel good, look good and get more out of life with brands and services

that are good for them and good for others. We will inspire people to take small everyday actions that can add up to a big

difference for the world. We will develop new ways of doing business with the aim of doubling the size of our

company while reducing our environmental impact

We've always believed in the power of our brands to improve the quality of people’s lives and in doing the right thing. As our business grows, so do our responsibilities. We recognise that global challenges such as climate change concern us all. Considering the wider impact of our actions is embedded in our values and is a fundamental part of who we are.

SWOT Analysis HUL

STRENGTH

HUL enjoys a formidable distribution network covering over 3400 distributors and 16 millionoutlets. The new sales organization named 'One HUL' brings "Household and PersonalCare" and foods distribution networks together, thereby aligning all the units towards thecommon goal of achieving success. HUL has been continuously able to grow at a rate more than growth rate for FMCG Sector, thereby reaffirming its future stronghold in Indian market.

Weaknesses

HUL market dominance, originating from its extensive reach and strong brand presence, allowed it to raise the prices even as raw materials were getting cheaper. Hence, though the volumes decreased, the margins grew, and company was able to earn more profits. But higher margins attracted competition in areas of operations. HUL strategy remained focused on creating power brands and earning higher margins. It was not left with any other option but to try cutting down the costs in order to protect volumes, if not increase it.

Opportunities

India is one of the world's largest producers of FMCG goods but its exports are miniscule ascompared to production. Though Indian Cos. has been going global, their focus is more towards Asian countries because of the similar preferences. HUL is one of the top companies exporting FMCG goods from India. An expansion of horizons towards more and more countries would help HUL grow its consumer base and henceforth the revenues. Penetration levels for some major categories like skin-cream (22%), shampoo (38%), toothpaste (48%) and processed foods, continue to remain low offerings but great growth opportunities products

Threats

ITC has reduced its dependence on the cigarettes business - Contribution of the core business in revenues has come down from 87% in FY99 to 70% in FY’05. Over a period of five years, ITC has extended its presence into areas like foods, retailing, hotels, greetings, agriculture, paper, etc. These are businesses that can give it growth impetus in the long run. With ITC gaining momentum in each of these businesses, it is turning into a consumer monolith, and hence, the greatest threat to HUL's Business.

BCG matrix of HUL

The BCG matrix is a chart that had been created by Bruce Henderson for the Boston Consulting Group in 1968 to help corporations with analyzing their business units or product lines. This helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis

INTRODUCTION TO PROJECT TOPIC

India with a population of 120 crores is potentially one of the largest consumer markets in the world. With urbanization and development of economy tested and interests of people changes according as the advanced nation.Marketing of any product depends upon the consumer’s wants, preferences, and taste. In market we’ll consider things very carefully because FMCG is the essential consumer need purchased by individual to fulfil the need and for refreshment also.There’re many ways to consumer awareness & sell water purifier products in the market like dealers distribution, kiosk (canopy), d2d, cold call(referral, database..) etc. Applying various tools and techniques every water purifier company like HUL, EURKA FORBES, TATA, KENT etc. try to capture the market. .To increase the sales of water purifier products initially, the position of the company in the market is to offer various range of products. Potentiality of given products of the company strike rate of the company products and finally the current market share of the company products in the same product profile segment of the market must be known to us. So that we can design and implement the right marketing strategy for increase sales and consumer awareness as well as know the water drinking Habits in Kolkata.In making a market survey of “competitive analysis of purifier”, I along with help my team members meet about many peoples. In the area which provided by my company guide to me, we tried to find out the success of marketing strategy like: sales of our products, brand and product awareness among the people.

Water purifier market in India 2010

The water purification and treatment industry in India under siege from cheap imports of water treatment product from china is working to set standard for the water treatment industry in the country as a safeguard against ‘spurious product’. This is the being done through a certification process. Hence for the first time the industry has put its head together to come up with a solution. In a country like India where water scarcity is growing day by day there are too many issues relating to water. This has meant that there are dine a dozen firms that are trying to make the best of the situation. Now there is a clam our for proper standards.

India Water Purifier Market growth potential

With increasing number of people becoming conscious of the risks of drinking contaminated water, the demand for water purifiers is rising rapidly. In the past few years, Indian water purifier industry has witnessed an exponential growth of 22% CAGR. The water purifier industry sales grew dramatically during FY’09 as compared to previous fiscals due to improving demand and expanding production capacity. The industry saw high growth of rate 17% during FY’08 due to the increasing awareness for safe drinking water. The UV segment, which constitutes more than 55% of the industry and is a key focus area for water purifier manufacturers, due to the higher margins it offers, is expected to continue its rapid growth. According to Research, Indian Water Purifier industry will continue its growth trajectory and is expected to witness a turnover growth of more than 22% CAGR during the period between FY’11 and to FY’14.

Water Purifier -Pure it

Pure it is the world’s most advanced in-home water purifier. Pure it, a breakthrough offering of Hindustan Unilever (HUL), provides complete protection from all water-borne diseases,unmatched convenience and affordability. Pure it’s unique Germ kill Battery technology kills all harmful viruses and bacteria and removes parasites and pesticide impurities, giving you water that is "as safe as boiled water". It assures your family 100% protection from all water-borne diseases like jaundice, diarrheal, typhoid and cholera. What’s more, it doesn’t need gas, electricity or continuous tap water supply. Pure it not only renders water micro-biologically safe, but also makes the water clear, odourless and good-tasting. Pure it does not leave any residual chlorine in the output water. The output water from Pure it meets stringent criteria for microbiologically safe drinking water, from one of the toughest regulatory agencies in the USA, EPA (EnvironmentalProtection Agency). The performance of Pure it has also been tested by leading scientific and medical institutions in India and abroad.This patented technological breakthrough has been developed by HUL. This state-of –the-artengineering developed by a team of over 100 Indian and international experts from HUL andUnilever Research Centres has made Pure it possible at the consumer price of just Rs. 2000.Pure it runs with a unique ‘Germ kill Battery Kit’™ that typically lasts for 1500 litters* of water. The ‘Germ kill Battery Kit’ is priced at Rs.365. This means consumers will get 4 litres of water that is ‘as safe as boiled water’ ™ for just one rupee, which works out to an extremely affordable24 paisa per litre. Pure it in-home purification system uses a 4 stage purification process to deliver “as safe as boiled water” without the use of electricity and pressurized tap water.Pure it purifies the input drinking water in four stages, namely;

1. Micro-fiber Mesh - Removes visible dirt

2. Compact Carbon Trap - Removes remaining dirt, harmful parasites & pesticide impurities

3. Germ kill Processor TM – uses 'programmed chlorine release chlorine technology' and itsstored germ kill process targets and kills harmful virus and bacteria

4. Polisher TM – removes residual chlorine and all disinfectant by-products, giving clearodourless and great tasting water

5. Battery Life Indicator - Ensures total safety because when the germ kill power isexhausted, the indicator turns red, warning you to replace the battery

Some basic facts on water Problems Infected water causes an estimated 80 percent, of disease in India, according to

the World Health Organization (WHO).About half the world’s reported cases of polio, a crippling disease which is

waterborne, occur in India.Each year, diarrheal kills 500,000 Indian children

Water is pure at the source which is the municipal treatment plant. It comes toyour house through pipes. These pipes are very old and have rusted, which may be the cause ofcontamination.Sewage lines are also in contact with underground water pipes. People also break open pipes at places to have access to water. These open cracksallow contaminated matter to get inside the water pipes.With the ever growing problem of safe drinking water faced in India, HUL has come with asocial initiative of providing safe and pure drinking water by means of Pure it, a quality yetaffordable water Pure it.

Product analysis (Pure it)

Pureit- a water purifier designed and developed to provide “as safe as Boiledwater”PerformancePureit removes visible dirt, kills all viruses and bacteria, removes parasites and pesticideimpurities giving you water that is ‘as safes as boiled water’

Additional Features: Great sensorial – Clear, odour -free water : removes organics, pesticides, suspended

matter (turbidity) Any time , any where performance : works

- Without electricity- Without piped water

Convenience – No hassles of boiling, No maintenance costs like plumbing Cost – Rs. 1/- for every 4 Liters of water

The Technology: Chlorination of water is a known fact & is used as a world wide phenomenon by

municipal corporations for supply of potable water. It kills all bacteria and viruses in water. However chlorine added I n water by these corporation is not done scientifically

(especially in third world countries like). Hence the amount of chlorination may be more or less depending on the quantity of water; thus again making this water unsafe for human consumption.

← Frame

← Non woven (polyester cloth filter)

MICRO FIBRE MASH· Material – Non woven polyester· Removes suspended particulate > 10 micron· Reduces filtration load on CCT· Average flow rate of 5 lit/min

COMPACT CARBON TRAP· Material – intermediate activatedcarbon· Binder is used for holding the carbongranules· Removes particulate impurities < 10micron· Removes organic load – improvestaste of water· Removes pesticides· Removes cysts

GERM KILL PROCESSOR Attached with batching chamber. Stored germ-kill power target and kill harmful viruses and bacteria Unique Auto Switch off Technology – After the battery life indicator turns fully red, the purifier will begin to overflow from the battery life indicator on the front side.

Some water may still pass through the purifier. However, please note that thepurifier has stopped purifying water & the water may no longer be safe fordrinking.The purifier has been designed to overflow to indicate that the battery has notbeen replaced even after it has turned fully red.

POLISHER

Made by activated granular carbon and coated by silver.· This design has reduced pressure drop, eliminating the level of fines coming in the waterand reduced wastage of plastics in battery· Removes chlorine and disinfection by-products.· Radial flow design – low pressure drop.· Finally removes all odour, makes water visually clear & gives great tasting water

Competitive Analysis

What is competitive analysis?

Competitive analysis is a process of gathering and analyzing information about the competitor their practices, produce , strength ,and weakness and business trends in order to assess our position in the market and improve companies’ product and marketing strategies.

Wha is the purpose of competitive analysis?In today’s market I must know what competitor are doing and what to do stay ahead of the competition .Many business believe they are providing a good product to there customer but don’t have reliable information showing how customers perceive their product or how it compares to the competition. A competitive analysis performed by an unbiased third party is an individual tool because it can help to company for indentify ways to attract new customer as well as keep the ones you have satisfied with companies product.

Strength & weakness : How company’s product stacks up against the competition and in what areas they have an edge over company’s product and in what areas company’s product is superior.

Identity competitor : Verify who your primary and secondary competitors are

Improvement : How and in what areas company’s product process and practices must be improved to meet market demands or to stay ahead of the competition.

Marketing : What improvement company’s needs to make in marketing approach company may want to highlight why their product ahead of the competition or the unique feature that customer desire.

How competitive analysis help establish company’s product as a market leader?

Competitive analysis give to company as a realistic view of their competition and the opportunity to identify importance I areas like customer survives and marketing claims. It can help to compare products prior to making their marketing and promotional decisions.

Competitive analysis will help accomplish the following :

Have a realistic view of company competition . Foresee market changes and demand .

Identify ways attract customer from company’s competitor. Discover opportunities for improvement in company’s business practices. Identify necessary changes in company’s process to meet market demands.

A list of competitor

A list begins with a list of Hindustan Uniliver limited of water division Pure it’s competitor. Most of the time such a list of comprised of what company co-considers to be its chief competitors. However there may be other companies that indirectly compare with Hindustan Uniliver limited . Once that offer product or services that are aiming for the same customer capital. Hindustan Uniliver limited of water division pure it’s competitor in the market are

Whirlpool Eureka Forbes Ltd. Usha Brita Kent Philips Ken star Tata Swatch Hi- tech Whirlpool Godrej Jaipan Zero B

Key player in local market at kolkata. Hindustan Unilever Ltd. Eureka Forbes Ltd. Kent Philips Usha Brita Tata Swatch

How a Pure it is better than other method of water purifier

Main Feature

Pure it Boil water AdvanceUV inlinePurifier

AdvanceStoragePurifier

Remove/Kills· Viruses· Bacteria· Pesticides

Yes Must boilwater30-40minute

Yes No

End off life indicator

Yes No Yes No

Auto switch off Yes No Yes No18 ltr. Water storageCapacity

Yes Yes No Yes

Manual backup Yes Yes No YesNot require Gas Yes No Yes YesNot require electricity

Yes Yes No Yes

Dual fill Facility(Manual or Auto fill)

Yes No No No

Better Taste of waterRemoves Smell

Yes No Yes No

Marketing Strategies

4 P’S of Marketing Strategies

The major marketing management decision can be classified on one of following fourCategories

Product Price Place Promotion

MARKETIGSTRATEGY

TARGETMARKET

STRATEGY(Long Term)

MARKETIGMIX

STRATEGY(Short- Term

PRODUCT/SERVICE

STRATEGY

PROMOTION/MARKETING

COMMUNICATIONSTRATEGY

PRICESTRATEGY

DISTRIBUTION

STRATEGY

These variables are known as the marketing mix or 4 P’s of marketing. They are the variablesthat marketing managers can control in order to best satisfy customers in the target market.

Product: -The product is the physical product or service offered to the costumer. In the case of physicalproduct, it also refers to any services or conveniences that are part of the offering. Productdecision includes aspects such as functions, appearance, packaging, service, warranty, etc.

Price: -Pricing decision should take into account profit margins and the probable pricing response ofcompetitors. Pricing includes not only the list price, but also discounts, financing, and otheroptions such as leasing.

Place: -Place decisions are those associated with channels of distribution that serve as the means forgetting the product to the target customers. The distribution system performs transactional,logistical, and facilitating functions.

Promotion: -Promotion decisions are those related to communicating and selling to potential consumers.Since these costs can be large in proportion to the product price, a break-evenanalysis should be performed when making promotion decision. It is useful to knowthe value off a customer in order to determine whether addition customers areworth the cost of acquiring them.

PRODUCT/SERVICE STRATEGY OF WATER PURIFIER

4 variety available in the market Easy availability nation wide Best quality of used plastic (ABS food grade) Best quality based technological parts used. Designed and developed to provide “As safe as Boiled Water” Very attractive design in two color ( Royal blue and Burgundy ) Pure it removes visible dirt, kills all harmful viruses and bacteria, Removes parasites and pesticide impurities giving you water is “as Save as Boiled

water” Great sensorial- Clear, odour-free water: removes organics, Pesticides, suspended matter (turbidity) Any time, anywhere (portable) performance : works-without electricity without

piped water Very easy to use Convenience – No hassles of boiling, No maintenance costs like Plumbing Cost- Rs.1 /- for every 4 Liters of water Top most brand name ( Hindustan Unilever Ltd ) Quick service ( with In 24 hour ) Life time free service 6 month warranty period

PRICE STRATEGY OF WATER PURIFIER

Penetration strategy Product price range started for 1000 – 6900 Very Low cost of maintenance and consumable Low cost for product Best price for other than competitor Attractive discount on replacement of device for customer No credit terms Attractive allowance for dealers

PROMOTION / MARKETING COMMUNICATION STRATEGY OFWATER PURIFIER

Activated subscription immediately Fastly installation of products Properly repair services Free Services during life time Commercial TV advertisement Advertisement in news paper Broacher Sales force (8000+ across country) Marketing surveys through:-

o Kiosko Demonstrationo Cold callo Reference by old customer

PLACE / DISTRIBUTION STRATEGY OF WATER PURIFIER

Identify the place’s where Increase impurities than use for water Identify the place’s where Increase disease National launch in beginning 2007 Now present in all states Where Direct sales possibility more (urban area’s mostly) Easy available product (Good Transport facility ) I have distributed in 3 areas of Kolkata

Conclusion

Market survey was conducted market survey & Sales promotion in 3 areas of Kolkata .I had chosen my product as pure it because people are very conscious about their health and hazing factor. In such scenario most of the people are use ing water purifier.

I was lucky to join this company and learnt so many things like punctuality, hard work, Selling strategy of the product etc. I had met different type of people. Thus I came to know about the different views of the people.After the survey I came to conclution that the people in 3 areas of Kolkata(Sonerpur, Garia , Barruipur )are very much aware of pure it water purifier and maximum of them are satisfied with the product but still there a pinch of dissatisfaction after sales service among some customer .But the ratio this people are negligible.Now a days HUL is competing with many brands just like Eureka Forbes Ltd., Kent ,Philips, Usha Brita, Tata Swatch etc. I had found out from the survey that people use the word pure it as generic name for all water purifier no Metter to which company and brands it belongs to. Moreover my survey showed that most of the people are using pure it water purifier is their work place as well as in their home.