INTRODUCTION

This project is about Market research in which I have to analyse and compare the marketing

trends of the two major FMCG companies HUL and P&G and consumer behaviour towards

them on Indian grounds.

OBJECTIVE

This project was undertaken with a number of objectives listed below:

To know the various products of P&G and HUL available in India.

Research the marketing trends of HUL and P&G and compare them.

To study the current marketing strategy of both companies.

To analyse the effectiveness of distribution channels of both the companies.

It also looked into the different factors like quality, nominal prices, availability etc

that motivate a customer to buy a particular product.

The customer’s preference and behaviour towards the products was studied through

questionnaire.

SCOPE OF THE STUDY

The scope of the study is limited solely to the areas visited by the researcher for the purpose

of research; this may hence not be a total reflection of the penetration of HUL and P&G

products all over.

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COMPANY PROFILE

Introduction Of 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 Pureit.

The Company has over 16,000 employees and has an annual turnover of around Rs.19, 401

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.

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HISTORY

In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight soap

bars, embossed with the words "Made in England by Lever Brothers". With it, began an era

of marketing branded Fast Moving Consumer Goods (FMCG).

 Soon after followed Lifebuoy in 1895 and other famous

brands like Pears, Lux and Vim. Vanaspati was launched

in 1918 and the famous Dalda brand came to the market

in 1937.

In 1931, Unilever set up its first Indian subsidiary,

Hindustan Vanaspati Manufacturing Company, followed

by Lever Brothers India Limited (1933) and United

Traders Limited (1935). These three companies merged

to form HUL in November 1956; HUL offered 10% of its equity to the Indian public, being

the first among the foreign subsidiaries to do so. Unilever now holds 52.10% equity in the

company. The rest of the shareholding is distributed among about 360,675 individual

shareholders and financial institutions.

The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the company

had launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was

formed. Brooke Bond joined the Unilever fold in 1984 through an international acquisition.

The erstwhile Lipton's links with India were forged in 1898. Unilever acquired Lipton in

1972, and in 1977 Lipton Tea (India) Limited was incorporated.

Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold

through an international acquisition of Chesebrough Pond's USA in 1986.

Since the very early years, HUL has vigorously responded to the stimulus of economic

growth. The growth process has been accompanied by judicious diversification, always in

line with Indian opinions and aspirations.

The liberalisation of the Indian economy, started in 1991, clearly marked an inflexion in

HUL's and the Group's growth curve. Removal of the regulatory framework allowed the

company to explore every single product and opportunity segment, without any constraints

on production capacity.

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Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the

most visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills

Company (TOMCO) merged with HUL, effective from April 1, 1993. In 1996, HUL and yet

another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Unilever

Limited, to market Lakme's market-leading cosmetics and other appropriate products of both

the companies. Subsequently in 1998, Lakme Limited sold its brands to HUL and divested its

50% stake in the joint venture to the company.

HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994,

Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary Pads. HUL

has also set up a subsidiary in Nepal, Unilever Nepal Limited (UNL), and its factory

represents the largest manufacturing investment in the Himalayan kingdom. The UNL factory

manufactures HUL's products like Soaps, Detergents and Personal Products both for the

domestic market and exports to India.

The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on the Foods

and Beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari General Foods,

with significant interests in Instant Coffee. In 1993, it acquired the Kissan business from the

UB Group and the Dollops Icecream business from Cadbury India.

As a measure of backward integration, Tea Estates and Doom Dooma, two plantation

companies of Unilever, were merged with Brooke Bond. Then in 1994, Brooke Bond India

and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL), enabling

greater focus and ensuring synergy in the traditional Beverages business. 1994 witnessed

BBLIL launching the Wall's range of Frozen Desserts. By the end of the year, the company

entered into a strategic alliance with the Kwality Icecream Group families and in 1995 the

Milkfood 100% Icecream marketing and distribution rights too were acquired.

Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal

restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998.

The two companies had significant overlaps in Personal Products, Speciality Chemicals and

Exports businesses, besides a common distribution system since 1993 for Personal Products.

The two also had a common management pool and a technology base. The amalgamation was

done to ensure for the Group, benefits from scale economies both in domestic and export

markets and enable it to fund investments required for aggressively building new categories.

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In January 2000, in a historic step, the government decided to award 74 per cent equity in

Modern Foods to HUL, thereby beginning the divestment of government equity in public

sector undertakings (PSU) to private sector partners. HUL's entry into Bread is a strategic

extension of the company's wheat business. In 2002, HUL acquired the government's

remaining stake in Modern Foods.

In 2003, HUL acquired the Cooked Shrimp and Pasteurised Crabmeat business of the

Amalgam Group of Companies, a leader in value added Marine Products exports.

HUL launched a slew of new business initiatives in the early part of 2000’s. Project Shakti

was started in 2001. It is a rural initiative that targets small villages populated by less than

5000 individuals. It is a unique win-win initiative that catalyses rural affluence even as it

benefits business. Currently, there are over 45,000 Shakti entrepreneurs covering over

100,000 villages across 15 states and reaching to over 3 million homes.

In 2002, HUL made its foray into Ayurvedic health & beauty centre category with the Ayush

product range and Ayush Therapy Centres. Hindustan Unilever Network, Direct to home

business was launched in 2003 and this was followed by the launch of ‘Pureit’ water purifier

in 2004.

In 2007, the Company name was formally changed to Hindustan Unilever Limited after

receiving the approval of share holders during the 74th AGM on 18 May 2007. Brooke Bond

and Surf Excel breached the the Rs 1,000 crore sales mark the same year followed by Wheel

which crossed the Rs.2,000 crore sales milestone in 2008.

On 17th October 2008 , HUL completed 75 years of corporate existence in India.

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TypePublic company

BSE:HUL

Industry Fast moving consumer goods(FMCG)

Founded 1933

Headquarters Mumbai, India

Key people

Harish Manwani (Chairman), Nitin Paranje

(CEO and Managing Director)

Products

Home & Personal Care, Foods, Water

Purifier, Nutrition

Financial Position Net Sales Rs. 19,401 Crores (2010-11)Net Profit Rs. 2,306 Crores (2010-11)

Employees Over 65,000 direct & indirect employees

Parent Unilever Plc

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The Proctor and Gamble Company

Introduction

Founded in 1837, Procter & Gamble is one of the largest consumer products

companies in the world. In fiscal year 2007, it had annual revenue of US$ 68.2

billion, and ranked 74th on Fortune 500 list of the world's largest corporations.

P&G has operations in more than 80 countries, with more than 300 brands on market

in 160 countries. These include beauty care, household care and Gillette products.

Three billion times a day, P&G brands touch the lives of people around the world. P&G

Greater China business includes Mainland China, Hong Kong and Taiwan, which were

established in 1988, 1987 and 1985 respectively.

Procter & Gamble entered Mainland China in 1988 by establishing its first joint venture -

P&G (Guangzhou) Ltd. Headquartered in Guangzhou, P&G China currently has operations

in Guangzhou, Beijing, Shanghai, Chengdu, Tianjin, Dongguan and Nanping, and a technical

center in Beijing.

In 20 years, P&G has made remarkable achievements in following areas:

Building Leading Brands:- P&G is the largest consumer products company in

China, with annual sales of US$2 billion. We are in No. 1 market share position in all

categories where we compete. Rejoice, Safeguard, Olay, Pampers, Tide and Gillette are

currently No.1 brands in China's hair care, personal cleansing, skin care, baby care, powder

detergent and male grooming category respectively.

Registering Strong Business Growth:- P&G Greater China is one of the fastest

growing markets in the world. It is at No.2 position in volume, and among the top 5 markets

in value.

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Building A Best-in-Class Organization:- Together with company business growth,

P&G's China staff has grown rapidly. Over 97% of our Chinese workforce is made up

by Chinese nationals. P&&G China exports more managerial staff to other P&&G

markets than the other way around.

Committing to Being A Good Corporate Citizen:- P&G has donated over 80

million yuan (US$10 million) to various charity causes in China, with Project

Hope being the largest recipient of P&G corporate charity dExplore Beauty &

Grooming

History

Procter & Gamble Co. (P&G) is an American company based in Cincinnati, Ohio that

manufactures a wide range of consumer goods. In India Proctor & Gamble has two

subsidiaries: P&G Hygiene and Health Care Ltd. and P&G Home Products Ltd. P&G

Hygiene and Health Care Limited is one of India's fastest growing Fast Moving Consumer

Goods Companies with a turnover of more than Rs. 500 crores. It has in its portfolio famous

brands like Vicks & Whisper. P&G Home Products Limited deals in Fabric Care segment

and Hair Care segment. It has in its kitty global brands such as Ariel and Tide in the Fabric

Care segment, and Head & Shoulders, Pantene, and Rejoice in the Hair Care segment.

Procter & Gamble's relationship with India started in 1951 when Vicks Product Inc. India, a

branch of Vicks Product Inc. USA entered Indian market. In 1964, a public limited company,

Richardson Hindustan Limited (RHL) was formed which obtained an Industrial License to

undertake manufacture of Menthol and de mentholised peppermint oil and VICKS range of

products such as Vicks VapoRub, Vicks Cough Drops and Vicks Inhaler. In May 1967, RHL

introduced Clearsil, then America's number one pimple cream in Indian market. In 1979,

RHL launches Vicks Action 500 and in 1984 it set up an Ayurvedic Research Laboratory to

address the common ailments of the people such as cough and cold.

In October 1985, RHL became an affiliate of The Procter & Gamble Company, USA and its

name was changed to Procter & Gamble India. In 1989, Procter & Gamble India launched

Whisper - the breakthrough technology sanitary napkin. In 1991, P&G India launched Ariel

detergent. In 1992, The Procter & Gamble Company, US increased its stake in Procter &

Gamble India to 51% and then to 65%. In 1993, Procter & Gamble India divested the

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Detergents business to Procter & Gamble Home Products and started marketing Old Spice

Brand of products. In 1999 Procter & Gamble India Limited changed the name of the

Company to Procter & Gamble Hygiene and Health Care Limited.

P&G Home Products Limited was incorporated as 100%

subsidiary of The Procter & Gamble Company, USA in

1993 and it launched launches Ariel Super Soaker. In the

same year Procter & Gamble India divested the

Detergents business to Procter & Gamble Home Products.

In 1995, Procter & Gamble Home Products entered the

Haircare Category with the launch of Pantene Pro-V

shampoo. In 1997 Procter & Gamble Home Products

launches Head & Shoulders shampoo. In 2000, Procter &

Gamble Home Products introduced Tide Detergent

Powder - the largest selling detergent in the world. In

2003, Procter & Gamble Home Products Limited

launched Pampers - world's number one selling diaper

brand.

Today, Proctor & Gamble is the second largest FMCG

company in India after Hindustan Lever Limited.

TypePublic

NYSE:PG

Industry Fast moving consumer goods(FMCG)

Founded

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1837

Headquarters Cincinnati,Ohio,US

Key peopleBob McDonald (President andCEO)

Products Home & Personal Care, Foods

Financial Position Net Sales $ 82,559 Million (2010-11)

Net Profit $ 15,818 Million (2010-11)

OVERVIEW

Hindustan Unilever Limited (HUL) (BSE: HUL) is India's largest FMCG

company, touching the lives of two out of three Indians with over 20 distinct

categories in home & personal care products and food & beverages. They endow the

company with a scale of combined volumes of about 4 million tones and sales of over.

Rs.19401 Crores.HUL is also one of the country's largest exporters; it has been

recognized as a Golden Super Star Trading House by the Government of India.

HUL was formed in 1933 as Lever Brothers India Limited and came into being in

1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan

Vanaspati Mfg. Co. Ltd. and United Traders Ltd. .

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The Anglo-Dutch company Unilever owns a majority stake (52%) in Hindustan

Unilever Limited.

It is headquartered in Mumbai, India and has an employee strength of over 15,000

employees and contributes for indirect employment of over 52,000 people. The

company was renamed in June 2007 to “Hindustan Unilever Limited”.

In 2007, Hindustan Unilever was rated as the most respected company in India for

the past 25 years by Business world, one of India’s leading business magazines, The

rating was based on a compilation of the magazines annual survey of India’s Most

Reputed Companies over the past 25 years.

Hindustan Unilever's distribution covers over 1 million retails outlets across India

directly and its products are available in over 6.3 million outlets in India, i.e., nearly

80% of the retail outlets in India. It has 39 factories in the country. Two out of

three Indians use the company’s products and HUL products have the largest

consumer reach being available in over 80 per cent of consumer homes across India.

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OVERVIEW

Procter & Gamble Co. (P&G, NYSE: PG) is a worldwide producer of consumer,

household and pharmaceutical goods (in addition, P&G manufactures chemicals as

input for its own products as well as for the chemical processing industry, and P&G

produces Soap Operas as part of its elaborate marketing strategy in order to hook

female customers up to its brands).

Today, P&G markets its products to more than five billion consumers in 130

countries. The company has on-the-ground operations in over 70 countries around the

world, and employs more than 106,000 people.

P&G is a Fortune 500 American multinational corporation headquartered in

Cincinnati, Ohio. P&G ranks #39 on the list, before its main competitor Johnson &

Johnson (#57) and Kimberly-Clark (#142). P&G also outperforms Unilever and

Nestle, the company’s main competitors overseas.

In early 2010, P&G reached 4th largest corporation in the US by market

capitalization, surpassed only by Exxon Mobil, Microsoft, and Walmart.

According to the Nielsen Company, in 2007 P&G spent more on U.S. advertising than

any other company; the $2.62 billion spent by P&G is almost twice as much as that

spent by General Motors, the next company on the Nielsen list. P&G was named 2008

Advertiser of the Year by Cannes International Advertising Festival

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A single word can sum up the core of what Procter & Gamble (P&G) is all about—

brands.  Think of some of the most well-known household products out there: Tide,

Crest, Gillette, Pantene, Pampers, Olay, Bounty, Oral B, Bounty Febreeze, Old Spice,

Always, PuR.  The list could go on, and on, and on, until we’d covered every one of

the almost 300 brands under the P&G umbrella.  Some of them (Crisco, Crest, Tide)

are P&G inventions while others (Charmin, Gillette, Olay) have been acquired over

the course of more than a century and a half of business.  Of that number, an

incredible 23 of P&G’s brands produce around $1 billion each per year in revenue.

Waiting to bump the billion-dollar cadre ever higher, however, are some 20 further

brands that each rake in more than $500 million annually and are being primed to

make the push across the Rubicon.  All of this is ample evidence, if any were required

of a firm that has grown its net sales to $79 billion in 2009, that P&G is, in its own

words (and capitalization), “Designed to Lead.”  Indeed, P&G thrives on loyal

customers and strives to put out products that merit devotion in 180 countries the

world over.  It is ranked No. 20 on the Fortune 500 in 2009 and is indexed in both the

S&P 500 and the Dow Jones Industrial Average

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Purpose, Principles & Vision of HUL

Our corporate purpose states that to succeed requires "the highest standards of corporate

behaviour towards everyone we work with, the communities we touch, and the environment

on which we have an impact."

Always working with integrity

Conducting our operations with integrity and with respect for the many people, organisations

and environments our business touches has always been at the heart of our corporate

responsibility.

Positive impact 

We aim to make a positive impact in many ways: through our brands, our commercial

operations and relationships, through voluntary contributions, and through the various other

ways in which we engage with society. 

Continuous commitment

We're also committed to continuously improving the way we manage our environmental

impacts and are working towards our longer-term goal of developing a sustainable business.

Setting out our aspirations 

Our corporate purpose sets out our aspirations in running our business. It's underpinned by

our code of business Principles which describes the operational standards that everyone at

Unilever follows, wherever they are in the world. The code also supports our approach to

governance and corporate responsibility.

Working with others

We want to work with suppliers who have values similar to our own and work to the same

standards we do. Our Business partner code, aligned to our own Code of business principles,

comprises ten principles covering business integrity and responsibilities relating to

employees, consumers and the environment.

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Vision

Unilever products touch the lives of over 2 billion people every day – whether that's through

feeling great because they've got shiny hair and a brilliant smile, keeping their homes fresh

and clean, or by enjoying a great cup of tea, satisfying meal or healthy snack.

A clear direction

The 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.

 

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Purpose, Principles & Vision of P&G

Foundation

Taken together, our Purpose, Values and Principles are the foundation for P&G’s unique

culture. Throughout our history of over 170 years, our business has grown and changed while

these elements have endured, and will continue to be passed down to generations of P&G

people to come.

Our Purpose unifies us in a common cause and growth strategy of improving more

consumers’ lives in small but meaningful ways each day. It inspires P&G people to make a

positive contribution every day.

Our Values reflect the behaviors that shape the tone of how we work with each other and

with our partners.

And Our Principles articulate P&G’s unique approach to conducting work every day.

Purpose

P&G brands and P&G people are the foundation of P&G’s success. P&G people bring the

values to life as we focus on improving, the lives of the world’s consumers.

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Values

Integrity

We always try to do the right thing.

We are honest and straightforward with each other.

We operate within the letter and spirit of the law.

We uphold the values and principles of P&G in every action and decision.

We are data-based and intellectually honest in advocating proposals, including,

recognizing risks.

Leadership

We are all leaders in our area of responsibility, with a deep commitment to delivering

leadership results.

We have a clear vision of where we are going.

We focus our resources to achieve leadership objectives and strategies.

We develop the capability to deliver our strategies and eliminate organizational

barriers.

Ownership

We accept personal accountability to meet our business needs, improve our systems

and help others improve their effectiveness.

We all act like owners, treating the Company’s assets as our own and behaving with

the Company’s long-term success in mind.

Passion for Winning

We are determined to be the best at doing what matters most.

We have a healthy dissatisfaction with the status quo.

We have a compelling desire to improve and to win in the marketplace.

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Ownership

We respect our P&G colleagues, customers and consumers, and treat them as we want

to be treated.

We have confidence in each other’s capabilities and intentions.

We believe that people work best when there is a foundation of trust.

Principles

We Show Respect for All Individuals

We believe that all individuals can and want to contribute to their fullest potential.

We value differences.

We inspire and enable people to achieve high expectations, standards and challenging

goals.

We are honest with people about their performance.

The Interests of the Company and the Individual Are Inseparable

We believe that doing what is right for the business with integrity will lead to mutual

success for both the Company and the individual. Our quest for mutual success ties us

together.

We encourage stock ownership and ownership behavior.

We Are Strategically Focused in Our Work

We operate against clearly articulated and aligned objectives and strategies.

We only do work and only ask for work that adds value to the business.

We simplify, standardize and streamline our current work whenever possible.

Innovation Is the Cornerstone of Our Success

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We place great value on big, new consumer innovations.

We challenge convention and reinvent the way we do business to better win in the

marketplace.

We Value Personal Mastery

We believe it is the responsibility of all individuals to continually develop themselves

and others.

We encourage and expect outstanding technical mastery and executional excellence.

We Seek to Be the Best

We strive to be the best in all areas of strategic importance to the Company.

We benchmark our performance rigorously versus the very best internally and

externally.

We learn from both our successes and our failures.

We Are Externally Focused

We develop superior understanding of consumers and their needs.

We create and deliver products, packaging and concepts that build winning brand

equities.

We develop close, mutually productive relationships with our customers and our

suppliers.

We are good corporate citizens.

We incorporate sustainability into our products, packaging and operations.

Mutual Interdependency Is a Way of Life

We work together with confidence and trust across business units,

functions,categories and geographies.

We take pride in results from reapplying others’ ideas.

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We build superior relationships with all the parties who contribute to fulfilling our

Corporate Purpose, including our customers and suppliers, universities and

governments.

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PRODUCTS

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Brands-

Food brands

HUL is one of India’s leading food companies. Our passion for understanding what people

want and need from their food - and what they love about it - makes our brands a popular

choice

Brooke Bond 3 Roses

Exquisite taste in a cup of tea that is also good for your health!

Annapurna

Partnering with the mom in nurturing her dreams, Annapurna Atta is aimed at helping her

provide wholesome tasty nutrition to her family. 

Red Label

Brooke Bond Red Label… 'Chuskiyaan Zindagi ki'

Brooke Bond Taaza

Brooke Bond Taaza

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Brooke Bond Taj Mahal

Brooke Bond Taj Mahal is an exclusive selection of teas for the discerning consumer.

Bru

Bru se hoti hain khushiyaan shuru…

Kissan

Eat Happily. Grow Happily.

Knorr

Knorr helps families make meal times special, nutritious, tasty and healthy.

Kwality Wall’s

A good honest scoop of daily pleasure.

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Lipton

Lipton has a range of vitality teas that truly encompass the goodness of tea.

Modern

Modern – A Wholesome & Nourishing, Hygienically produced & Reliably Safe Bread

Brooke Bond Sehatmand

BB Sehatmand – Jo Sehatmand Woh Aage Har Dum!! (One who is healthy is a step ahead….

Always)

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Home care brands

HUL has a diverse portfolio of brands offering home care solutions for millions of consumers

across India.

Active Wheel

New Active Wheel – with Power of lemons and freshness of thousands of flowers!

Cif

Cif- the best cleaner to let you shine.

Comfort

The world’s largest fabric conditioner brand.

Domex

The sheer power of Domex bleach gives you the confidence you need, eradicating all known

germs.

Rin

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Rin provides ‘best in class whiteness’ which is demonstrable.

Sunlight

Sunlight is a color care brand

Surf Excel

Giving your kids the freedom to get dirty and experience life, safe in the knowledge that Surf

Excel will remove those stains

Vim

Created in 1885, the Vim brand is still innovating and using the magic of natural ingredients

to create unbeatable results over a hundred years later.

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Personal Care Brands

Our personal care brands, including Axe, Dove, Lux, Pond's, Rexona and Sunsilk, are

recognised and love by consumers across India. They help consumers to look good and feel

good – and in turn get more out of life.

Aviance

Aviance enables women actualize their unique potential through expert customized beauty

solutions.

Axe

Axe with Best Quality Fragrance

LEVER Ayush Therapy

LEVER Ayush aims to help a new generation of Indians rediscover everyday health and

vitality through customized Ayurvedic solutions.

Breeze

Breeze, with the goodness of glycerine gives soft, fragrant and smooth skin.

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Clear

New CLEAR with Nutrium 10 goes 3 layers deep** into the scalp to nourish such that

Dandruff Wont Come Back*!

Clinic Plus

Clinic Plus - makes hair inside strong, outside long!

Closeup

Freshness that brings you Closer

Dove

Dove stands for real beauty. All around the world, Dove is making real women feel more

beautiful!

Fair & Lovely

More than 30 years ago, a unique brand was born. Wrapped within a humble lavender tube, it

went on to become the World’s No.1 Fairness cream.

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Hamam

Holistic skin care experiences perfected over the ages to deliver healthy, beautiful skin

Lakme

Lakme is an ally to the Indian Woman and inspires her to express her unique beauty and

sensuality. Thus, enabling her to realize the potency of her beauty.

Lifebuoy

Lifebuoy is available in multiple variants in soaps and specialist formats such as liquid

handwash, catering to the entire family.

Liril 2000

Liril 2000-Now come closer to your loved ones

Lux

Lux – For soft and smooth skin!

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Pears

Pears – the purest and most gentle way to skincare!

Pepsodent

Pepsodent India is committed to improve the overall Oral health of Indians.

Pond’s

Get the expert to look after your skin

Rexona

Rexona gives you silky skin irresistible to touch that keeps the romance alive!

Sunsilk

Sunsilk has had a re-style!

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Vaseline

Your skin is amazing. It deserves to be treated as such.

Water

Pureit is the  world’s most advanced in-home water purifier. Pureit, a breakthrough offering

of Hindustan Unilever (HUL), provides complete protection from all water-borne diseases,

unmatched convenience and affordability.

Pureit’s unique Germkill 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,

diarrhea, typhoid and cholera. What’s more, it doesn’t need gas, electricity or continuous tap

water supply.

Pureit not only renders water micro-biologically safe, but also makes the water clear,

odourless and good-tasting. Pureit does not leave any residual chlorine in the output

water.

The output water from Pureit meets stringent criteria for microbiologically safe

drinking water, from one of the toughest regulatory agencies in the USA, EPA

(Environmental Protection Agency).

The performance of Pureit 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-art

engineering developed by a team of over 100 Indian and international experts from HUL and

Unilever Research Centres has made Pureit possible at the consumer price of just Rs. 2000

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Pureit runs with a unique ‘Germkill Battery Kit’™ that typically lasts for 1500 litres* of

water. The ‘Germkill 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 affordable 24 paise per litre.

Pureit 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. Pureit purifies the input

drinking water in four stages, namely;

1. Micro-fiber MeshTM - Removes visible dirt

2. Compact Carbon TrapTM - removes remaining dirt, harmful parasites & pesticide

impurities

3. Germkill ProcessorTM – uses 'programmed chlorine release chlorine technology'  and its

stored germkill process targets and kills harmful virus

and bacteria

4. PolisherTM – removes residual chlorine and all

disinfectant by-products, giving clear odourless and great

tasting water

5. Battery Life Indicator - Ensures total safety because

when the germkill power is exhausted, the indicator turns

red, warning you to replace the battery

Advanced Auto-Switch off - In case, the battery is not changed when it turns fully red, as an

additional assurance of safety, the advanced Auto-Switch off will automatically switch-off

the flow of water.

Protect your loved ones with a Pureit today!

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Nutrition

We've created policies and guidelines to ensure we always act responsibly when it comes to

health and nutrition.

Acting responsibly

Millions of people around the world enjoy the foods and drinks we create. So the ingredients

we use, the formulations, and the way we advertise and market our brands can potentially

make a big impact on global health.

We aim to act responsibly and have a strong nutrition policy. We've also developed a

carefully considered approach to health and nutrition which includes:

encouraging a balanced diet with the right amount of proteins, carbohydrates, fats,

vitamins and minerals

developing a growing range of low fat, low sugar, low calorie alternatives, plus more

'active health' products

marketing responsibility our foods and beverages and helping to reduce over-

consumption

helping people understand the nutritional benefits of our products

creating products that reflect the fact that people will only eat foods that they enjoy

having sound specific evidence underpinning all our claims

making significant contributions to researching the relationship on nutrition and

health, such as the effects of good fats (unsalted fats), fruits & vegetables and

vitamins and minerals

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Clear Communication

We've also developed a set of marketing principles to ensure we're always 'honest, decent and

truthful' in our communication – which include special principles on advertising to children.

As well as excluding anything that appears to condone over-consumption in our marketing,

we also prohibit anything that undermines the promotion of healthy, balanced diets and

lifestyles, or misrepresents snacks as meals. We will also make sure that any claims made in

our marketing about any of our products are supported by scientific evidence.

Under our principles for marketing to children, we ensure our advertisements don't convey

misleading messages, don't undermine parental influence, don't encourage pester power, don't

suggest time or price pressure, don't encourage unhealthy dietary habits, and don't blur the

boundary between promotion and content.

In addition, as well as supporting the development of international self-regulatory codes for

all marketing and advertising, we recently agreed to voluntarily restrict all paid marketing

communications (with the exception of packaging) directed primarily at children under the

age of six years.

We believe that by putting these principles in place, we're not only doing the right thing, but

we're being proactive through voluntary self-regulation – instead of simply reacting to

external pressures.

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HEALTH, HYGIENE & BEAUTY

Unilever's vitality mission is a mandate to help people feel good, look good and get more out

of life. At the heart of this mission is hygiene and health through hygiene.

At The Heart Of Our Mission

What does 'vitality' really mean to billions of people in the world? How does it manifest itself

in their lives? What does it add to their lives when it is present? What are the consequences

when it is absent?

The desire to be clean, active, energetic and healthy is common to every person, whether

young or old, whether rich or poor. To billions in the developing world, health is simply the

absence of illness. For them, health is the ability to go to work, to provide a square meal for

their families. For their children, health is the ability to play, to go to school, to work towards

a better future. For the affluent, health is more than just physical well being. For them the

signs of good health – being active, energetic, feeling good, and looking good – allow them

to get the most out of life. Yet for the millions of mothers who lose their children to diarrhoea

and upper respiratory infections, health is simply about staying alive.

New Risks

"The risks are likely to intensify," says Sally Bloomfield, a member of the International

Scientific Forum on Home Hygiene (IFH), which receives an educational grant from

Unilever. "As populations age and the incidence of immuno-deficient diseases such as AIDS

rises, more people will be vulnerable to the consequences of poor hygiene."

"Infectious diseases are also hopping around the world quicker than before due to

globalisation, as we saw with SARS and now with Swine Flu. In some cases, you can't treat

these with antibiotics as they're viral; others are bacterial but resistant to antibiotics, such as

the hospital superbug MRSA (Methicillin Resistant Staphylococcus Aureus)."

New pathogens – agents that can cause disease – are also constantly appearing. Since the

1970s, at least one new pathogen has been recorded each year. Good hygiene is often the only

way to avoid many pathogens and their consequences.

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A Simple Solution

One of the main stumbling blocks, says Dr Val Curtis at the London School of Tropical

Medicine and Hygiene, is that most people do not use one of the world's most basic and

widely available home hygiene products – the humble bar of soap.

"Hands are a superhighway for transmitting germs, but most people don't wash their hands

with soap and water at key times," she explains. "In the UK, for example, only 30% of people

wash their hands after going to the toilet and only 43% after changing a nappy." The statistics

in developing countries are similar.

Health Through Hygiene

So what's Hindustan Unilever doing?

One of our oldest brands, Lifebuoy, exemplifies our commitment to champion health through

hygiene for everyone.

Healthy living

Washing your hands with anti-bacterial soap is one way of helping to prevent the spread of

disease.

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Beauty & Grooming

Beauty & Grooming

Explore Beauty & Grooming Brands

Learn more about Braun

37

Learn more about Wella

Learn more about MACH3

Learn more about Always

Learn more about CoverGirl

Learn more about Olay

Learn more about Pantene

38

Learn more about Herbal Essences

Learn more about Rejoice

Learn more about Fusion

Learn more about Safeguard

Learn more about Venus

Learn more about Head & Shoulders

39

Learn more about Oral-B

Learn more about Dolce & Gabbana Fragrances

Learn more about Tampax

Learn more about SK-II

Learn more about Gillette

40

Learn more about HUGO BOSS Fragrances

Learn more about Crest

Learn more more about Prestobarba/Blue

Household Care

Explore Household Care Brands

Learn more about Pampers

Learn more about Febreze

41

Learn more about Duracell

Learn more about Ariel

Learn more about Swiffer

Learn more about Tide

Learn more about Downy

42

Learn more about Gain

Learn more about Mr. Clean

Learn more about Eukanuba

Learn more about Prilosec OTC

Learn more about Bold

43

Learn more about Charmin

Learn more about Vicks

Learn more about Ace

Learn more about Pringles

Learn more about Cascade

44

Dash

Learn more about Bounty

Learn more about Iams

Learn more about Dawn

45

MARKETING STRATEGY AND MARKET SHARE OF HUL

As per an article titled “Cheaper products eat into HUL market share” in ET on 18 July

2009 Hindustan Unilever (HUL), India's largest consumer products company, lost its grip in

the market for almost everything from soaps and shampoos to toothpastes and skin-creams

during april-may.

The company lost value market share across product categories by up to 6% year-on-year

during April-May, according to numbers released by market research firm A C Nielsen.

Analysts attributed this loss to factors like:

Consumers switching to cheaper regional brands (Godrej No. 1,Santoor).

Lack of product innovations.

Stable pricing by rivals

The company's focus on high-value products(Ponds and dove).

Besides Godrej No 1, Reckitt Benckiser's Dettol in soap, Colgate and Dabur’s

Meswak and Babool in toothpaste and Vatika in shampoos gained at the cost of HUL.

Regional brands like Chik in shampoos, Dyna and Santoor in soaps, and Nirma and

Ghadi in detergents swiftly raised trade margins and extended credit period for the

trade.

In detergents, while HUL increased prices, competition from smaller players at lower

price points led to its market share dipping both in terms of volume and value.

Companies that focused on affordable price points such as Rs 2, Rs 5 and Rs 10 also

fared well. HUL also diluted its brand positioning in some cases, said analysts.

Reckitt Benckiser's Dettol, for example, has gained because its anti-germ positioning

has remained constant, while HUL has taken Lifebuoy through several positioning

changes.

The company has already started firefighting though. It is now pushing volumes

ahead of margins. Corrective measures include:

grammage correction.

lower priced unit packs.

46

increased promotions for value brands.

47

Wheel soap's Rs 10 pack now weighs 275 gms, up from 250 gms. The Lux soap too

now weighs 25 gms more than earlier at the same price point of Rs 18.

Soaps like Lifebuoy, Liril, Hamam, Rexona, Breeze and Lux have been given new

packaging and fragrance.

The company has also hiked retailer margins in some categories, offering 8%

incremental margins. In addition, it is investing heavily on smaller soap brands like

Rexona, Breeze and Hamam and reducing prices of detergent brands Wheel and Surf.

Nielsen had recently updated its sample size from 16,000 to close to 23,000 stores and

included uncovered channels such as modern trade and institutional areas like canteen stores,

besides increasing its footprint in rural pockets following companies complaining about

'discrepancies' in its data.

HUL's strategy to relaunch all the brands targeting the masses, especially in the personal care

segment has shown some positive result and is likely to do better

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MARKETING STRATEGY AND MARKET SHARE OF P & G

Though we’re already bullish with regards to Procter & Gamble with our $84 Trefis price

estimate of its stock, which is at a 30% premium to its current market price at close to $65,

CEO Bob McDonald at a recent analyst meeting talked about some key measures that P&G is

undertaking to head off and win market share from competitors like Unilever, Clorox, and

Colgate-Palmolive Co. in the consumer products businesses and companies like L’Oreal ,

Avon and Estee Lauder in cosmetics and beauty.

What exactly is P&G doing right? We highlight some of the key points driving P&G’s

growth strategy.

1) Selling to More Consumers in Existing Markets

To realize its goal of acquiring one billion additional consumers by 2014-15, it comes as no

surprise that P&G is focusing on the two most populous nations in the world – China and

India. While targeting volumes at lower price-points, P&G has launched lower-priced

product extensions of its global premium brands such as Tide and Gillette targeted at

consumers with lower disposable income levels in these economies and expanded its

distribution network to cover the previously inaccessible rural areas. While the U.S. and

Western Europe continue to constitute over 41% and 21% of sales respectively, going

forward much of the growth is expected to come from the emerging economies, which have

been exhibiting robust double-digit growth primarily on account of expanding middle class

with rising disposable income levels and high population growth rates.

2) Selling More Products to the Existing Consumers

Very apt for this period of uncertainty, under McDonald’s leadership P&G has set out on a

relative performance goal – to grow 1-2 percent points faster than global market growth, of

which half is expected to come from market share gains (a reasonable 0.1%-0.2% gain in

share per year for the next 5 years) in the existing product categories while the other half

shall be drawn from “white space” growth i.e. launching more product categories in more

countries and launching product extensions of established brands.

While P&G competes in 35 product categories in the U.S., it is only present in an average of

19 product categories globally. The “white space” growth primarily focused on launching

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more product categories in more countries. P&G is targeting expansion of the global average

to presence in 24 product categories by 2014-15.

3) Selling Products through More Outlets

P&G currently sells broadly through four channels: 1) mass volume retail (Wal-Mart, etc.), 2)

mom-and-pop stores (which dominate emerging markets), 3) wholesale and 4) modern retail

stores. P&G is focusing on expansion in the international pharmacy and e-commerce

channels. This shall contribute to P&G products being available at more outlets.

P&G is essentially relying on cost efficiencies leading to operating margin improvements of

the tune of 350-450 basis points to fuel the above top-line growth. While most of these cost

savings are expected to come from scale, such as sourcing of larger volumes of raw materials

at more competitive prices and dilution of SG&A over larger volumes, P&G is also targeting

improvements in production planning and business-planning cycle time to improve operating

margins.

If P&G were to realize the above stated strategy, we can reasonably expect incremental gain

in market share of the tune of 1% in all product categories in 2011-15 over and above our

current estimates. We estimate this to lead to a 4% potential upside to our current $84 Trefis

price estimate of Procter & Gamble’s stock.

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Distribution Channel Of Hul- In Urban Area

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Distribution Channel Of Hul- In Rural Area

52

Distribution Channel Of P&G- In Urban Area

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Distribution Channel Of P&G- In Rural Area

54

SUSTAINABILITY STRATEGY OF HUL

We have a long-standing set of values and principles that guides our behaviour. These values

underpin our approach to sustainability.

We have always been a business driven by a strong set of values. Today those values are as

important as ever. We now know that the well-being of society and the environment is critical

to our ability to grow.

Sustainability Strategy

Sustainability is central to our business strategy.

Engaging with our stakeholders

Engagement ensures we are listening to and addressing the right issues in the right way.

Governance

Our strategy is supported by company-wide governance and management structures.

Commitments

Our commitment to sustainability and responsible business practice.

External commentary

External comments we have received on our sustainability strategy.

Sustainability strategy

Unilever’s vision is to double the size of its business while reducing the overall impact on

environment. This new vision recognises that the world is changing, populations are growing

and the rise in incomes is fuelling a growth in the demand for consumer products. Products

like ours rely on an increasingly constrained set of natural resources, whether it is fuel, water,

or other raw materials.

In Hindustan Unilever Limited (HUL), the principle of Corporate Responsibility (CR) is an

integral part of our commitment to all our stakeholders – consumers, customers, employees,

the environment and the society that we operate in. 

Today, India is battling multiple issues like water scarcity, poverty, and problems arising out

of low awareness of health, hygiene, and nutrition. If these issues are not addressed soon,

they will create insurmountable barriers to business growth. We believe that helping society

55

prosper and ensuring a sustainable future for the planet goes hand in hand with our goal of

ensuring growth that is competitive, profitable, and sustainable for our organisation.

Our contributions have to be substantial and sustainable, which is why we are not just

banking on our philanthropic programmes, but are transforming our core business practices

as well. Even the seemingly small innovations in our brands and business processes can lead

to a big difference in society as we touch the lives of two out of every three Indians.* 

For example, if one household uses Surf Excel detergent, it can conserve two buckets of

water per wash. A million Indian households using Surf Excel can save enough water for

meeting the basic hygiene needs of many Indians. Thus, small individual actions multiplied

with our large consumer base will make a big difference in combating the issues society

faces.

We will further demonstrate that successful business strategies are driven by responsible

business practices. The key to this approach is developing a CR framework which integrates

the social, economic, and environmental agenda with our business priorities – growing

markets, maintaining the competitive edge, enjoying goodwill in the communities we operate

in, and building trust and an exceptional reputation. Hence, in the future, the three

cornerstones for CR integration with business at HUL will be:

- Growing markets responsibly: We will address issues related to hygiene and nutrition

through product innovations and awareness. Gathering information about the concerns

expressed by consumers, communities, and stakeholders can help us identify opportunities

for innovation at the category, brand, and marketing plan level. We have a very strong and

trusted position in India and we can leverage this to our competitive advantage.

- Ensuring sustainable practices in our operations: To secure a thriving future, we need to

establish sustainable sources for raw materials. Being a company that is heavily dependent on

water, agriculture, fuels and petrochemicals, we must plan now for a future in which water

could be scarce, agriculture could be under pressure, and fuels will be expensive. Our

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consumers add up to two-thirds of the Indian population, hence addressing sustainability

issues is a high priority.

- Building a good reputation through responsible leadership: CR is one of the key

components of reputation and trust. A good reputation can be a major competitive advantage

and can build employer brand and consumer loyalty. 

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Engaging With Our Stakeholders

Listening to others and learning from our stakeholders informs our decision-making,

strengthens our relationships and helps us succeed as a business.

Stakeholder engagement for identifying issues that are material to us:

We appointed SustainAbility International to conduct stakeholder engagement on our behalf.

They analysed and assimilated the expectations of stakeholders regarding issues that matter to

them. These expectations were similar to the areas identified by us, where HUL's contribution

could create a significant impact.

Scoping the areas for intervention

While the issues are many, it is necessary to address them in a systematic manner to make a

real difference. Instead of spreading thin across all issues, we have chosen to work on five

areas to ensure a deep impact.

These areas have been arrived at using the output from our stakeholder engagement process

and areas which we are poised to address through our business.

Key messages from stakeholders

- ‘Target. Allocate resources. Achieve those targets. This is more critical than just being

visible & talking about it.’

- ‘We feel that some Indian companies can be leaders in their respective sectors. HUL has the

potential to be such a leader.’

- ‘Invest for your markets – don't do social work, it isn't your ballgame.’

- ‘Please make money out of it. When you make money out of it, things are going to change.’

58

  

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Corporate Governance

We aim to have strong governance structures in place to manage our social and

environmental responsibilities carefully and thoughtfully.

Corporate Responsibility at HUL is led by the CEO and the Management Committee (MC) of

the company. The MC governs the sustainability strategy with a view of key strategic

approaches and seeks reports on impacts and efforts against clear targets.

Each of the nine cells (in the daigram shown in Sustainability strategy section) is owned by

an MC member. For the execution of the strategy there is a team of 12 Sustainability

Governing Council (SGC) members based on their respective functions.

Sustainability Governing Council

The Sustainability Governing Council is responsible for:

Recommending sustainability priorities for approval by the MC and monitoring its

progress

Recommending HUL's positions on critical issues for approval by MC

Receiving stakeholder feedback

The role of the SGC is formalised, with a clear mandate and terms of reference outlining its

mission, purpose, membership, meeting schedule, and reporting systems.

 

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Commitments

Sustainability is defined as “meeting the needs of the present without compromising the

ability of future generations to meet their needs”.

61

External commentary

We shared our sustainability strategy with leading external experts from diverse backgrounds.

Below you can read their comments on our sustainability strategy.

View of leading external experts on HUL’s sustainability strategy

 ‘The long-term strategy and roadmap provides a comprehensive approach towards meeting

future sustainability challenges, especially with respect to resources such as water and

energy.’

- Shirish Sinha, Head Climate Change & Energy Programme, WWF

 ‘We are happy with the focus on linking the business processes with corporate responsibility.

Social impact has to be central to business processes, which is brought about by HUL's

strategy. Corporate responsibility via business strategies is the way forward.’

- Ibrahim H. Rehman, Director, Social Transformation Division, TERI

 ‘The tying up of your strategic threads is excellent. Ensure that you carry it through action!’

- George C. Varughese, President, Development Enterprises, Development Alternatives

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SUSTAINABLE STRATEGY, GOALS OF P & G

At P & G, we are focuing our efforts where we can make the most meaningful difference in

both environmental and social Sustainability

Our commitment begins with P&G’s Purpose, Values and Principles, in which Sustainability

is embedded, and manifests itself in a systemic and long-term approach. We strive to make

our actions matter.

In 2007, P&G established five strategies for Sustainability and set goals to be achieved by

2012. In March of 2009, in recognition of the progress we’ve made so far and to emphasize

our commitment to achieving even more significant wins, we increased each of our goals. It’s

a part of P&G’s culture to continuously raise the bar, and our work in Sustainability is no

exception.

Our five strategies are as follows:

Delight the consumer with sustainable innovations that improve the environmental

profile of our products.

GOAL Develop and market at least $50 billion in cumulative sales of “sustainable

innovation products,” which are products that have an improved environmental profile.(1)

PROGRESS

(in billions of U.S. dollars)

Cumulative Sales

since July 2007

Cumulative sales of sustainable innovation products $13.1

Cumulative sales of sustainable innovation products $13.1

Improve the environmental profile of P&G’s own operations.

GOAL Deliver an additional 20% reduction (per unit production) in CO2 emissions, energy

consumption, water consumption and disposed waste from P&G plants, leading to a total

reduction over the decade of at least 50%.

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PROGRESS

(percent reduction per unit production)

Since

July 2007

Since

July 2002

Energy Usage 11% 48%

CO2 Emissions 10% 52%

Waste Disposal 30% 53%

Water Usage 13% 52%

Improve children’s lives through P&G’s social responsibility programs.

GOAL Enable 300 million children to Live, Learn and Thrive.(2) Prevent 160 million days of

disease and save 20,000 lives by delivering 4 billion liters of clean water in our Children’s

Safe Drinking Water program.(3)

PROGRESSSince

July 2007

LIVE, LEARN AND THRIVE

Number of Children Reached 135 million

CHILDREN’S SAFE DRINKING WATER

Liters of Clean Water Delivered 930 million

Days of Disease Prevented 39 million

Lives Saved > 5,200

Engage and equip all P&G ers to build Sustainability thinking and practices into their

everyday work.

Shape the future by working transparently with our stakeholders to enable continued freedom

to innovate in a responsible way.

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THE DIRECT MARKETING CASE

Against Tide, but at what cost to Rin?

As a part of its marketing strategy an audacious advertisement campaign for Rin was

started by Hindustan Unilever Limited (HUL), on 26 Feb,2010, by pitching and comparing it

with Tide Naturals, a Procter & Gamble (P&G) product.

It became a hot topic of discussion for intellectual property rights (IPR) enthusiasts.

The ad is in the eye of a legal storm, and has been described by some as an ego battle

between the two FMCG conglomerates.

Part one of this was staged by HUL before the Chennai High Court when it filed a suit

alleging that P&G’s claim that its detergent ‘Tide Naturals’ contained lemon and

sandalwood was untrue.

Having convinced the court that it was only synthetic compounds that smelled like

lemon and sandalwood in ‘Tide Naturals’ and not the real stuff, HUL got the court to

direct P&G to insert a disclaimer in all its ads to that effect.

The scene then moved to the television screens across the nation which started airing

a new Rin ad by HUL which compared the white school uniforms of two boys,

washed in Tide and Rin respectively. While the shirt washed in Rin sparkled, the

one washed with Tide was yellowish.

It was P&G who went to the Calcutta High Court this time, alleging disparagement

and infringement of its trademark ‘Tide’. It was also pointed out by P&G that the

disputed ad used a packet of ‘Tide Naturals’ in its visuals, but used ‘Tide’ in the

voice-over.

The commercial was pulled off air in 8 days after the Calcutta high Court ordered

HUL to stop airing the commercial on various grounds including disparagement.

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The rules in the game of comparative advertisements have been laid down both by the courts

and also prescribed under Section 29 of the Trade Marks Act, 1999 (‘the Act’). While Indian

law permits comparative ads, denigration or derogation of competing goods is

impermissible.

The principles for grant of injunction in such cases were laid down by the Calcutta High

Court and have been followed consistently by various courts. Briefly put, these principles

state that a tradesman can declare his goods to be the best in the world and better than his

competitor’s even if it is untrue and while doing so, he can even compare the advantages of

his goods over his competitor’s. However, it is illegal if he says that his competitor’s

products are bad.

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HUL THROWS RIN CHALLENGE TO TV VIEWERS

After stay orders on the above described commercial, Hindustan Unilever Ltd (HUL) has

now launched an aggressive television campaign titled ‘Rin Safedi ki Challenge’ on

channels across India.

HUL has roped in cine star Kajol to feature in its new communication for Rin. “Are

you ready for the Rin Challenge? If you win, you get Rs 1 crore as prize money,”

says Kajol in Rin’s new commercial.

Interestingly, HUL’s new TVC opens with the shot of ‘Rin Research Center’ where

two housewives are invited to take part in the Rin challenge.In the new HUL

commercial, the rival brand is not named as it was in the earlier one.

The Rs 1 crore challenge advertising campaign is supposed to bring alive the Rin’s

superior value proposition to its consumers in a distinct and engaging manner.

Meanwhile, P&G has increased the grammage of its new launch Tide Naturals (200& 500gm

packs) by 25% without increasing price in the first week of March. Three months ago, HUL

had reduced prices of Rin bar (200g) from Rs 12 to Rs 10 and of 100g from Rs 6 to Rs 5.

HUL and P&G are now turning their attention to high-voltage ad campaigns to gain mind and

market share in the Rs 4,500-crore branded detergents sector.

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RESEARCH DESIGN

A research design is a framework or blueprint for conducting the marketing research project.

It specifies the details of the procedures necessary for obtaining the information needed to

structure and/or solve marketing research problem. The research design used in this project is

Descriptive research design.

SAMPLE DESIGN

SAMPLING TECHNIQUE USED:

In this research, we have used convineance sampling.

GEOGRAPHICAL AREA :

Jaipur

SAMPLE SIZE:

For this study, a sample of 50 respondents has been taken.

DATA COLLECTION TECHNIQUE

Questionnaire

Sources of Data

Primary sources

The primary data was collected through questionnaires. They were filled using the

scheduled method of data collection by the researcher.

Secondary sources

The secondary sources were used only for collecting information regarding the

project, collected from HUL and P&G website and TOI and DNA newspapers.

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TOOLS OF INVESTIGATION

The study was conducted with the help of questionnaire which was administered personally

to all the respondents. The questionnaire is aimed at fulfilling out the impact of

Advertisements of HUL and P & G in terms of Consumer preferences, recall and purchase

behaviour.

Tools Utilized:

Percentage Analysis

Bar Graph Chart

Column chart

Pie chart

STATISTICAL TOOLS USED

Different statistical tools are available that help us to reach to the conclusion. We have used

those various tools and techniques for the analysis of the data collected.

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DATA ANALYSIS AND INTERPRETATION

Market Share

Q1. Which of the following laundry products do you use?

a) HUL(Rin, Wheel, Surf- excel)

b) P&G(Tide, Ariel)

c) Others

Interpretation: The above chart shows that the HUL’s laundry products hold the major

market share (62%) while P&G holds 35% share in this market.

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Q2. Which of the following hair care products do you use?

a) HUL(Sunsilk, Clinic-plus, dove)

b) P&G(Pantene, Head & shoulders)

c) Others

Interpretation: The above chart shows that the HUL’s hair care products holds 50% market

share while P&G holds 36% share in this market.

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Q3. Which of the following skin care products do you use?

a) HUL(Ponds, Lakme, Fair & Lovely, Vaseline)

b) P&G(Olay)

c) Others

Interpretation: The above chart shows that the HUL’s skin care products hold the major

market share (76%) while P&G holds only 11% share in this market.

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Q4. Which of the following oral care products do you use?

a) HUL(Close-up, Pepsodent)

b) P&G(Oral-B, Crest)

c) Others

Interpretation: The above chart shows that the HUL’s oral care products hold the major

market share (55%) while P&G holds only 12% share in this market.

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Q5. Which of the following soaps do you use?

a) HUL(Breeze, Dove, Lifebuoy, Lux, Pears, Rexona, Liril)

b) P&G(Camay, ivory)

c) Others

Interpretation: The above chart shows that the HUL’s soaps hold the major market share

(81%) while P&G holds mere 3% share in this market.

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Motivation Factor

Q6.What motivates you to buy the selected products?

a) Quality

b) Price

c) Both

Laundry Products

Interpretation: From the above chart we can analyse that large part of the population buys

HUL laundry products because of its product’s nominal price and good quality and although

the quality of P&G products is good but they are dearer than HUL products.

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Hair Care Products

Interpretation: From the above chart we can analyse that both P&G and HUL provide a

good range of hair care products for price conscious as well as quality conscious people.

Skin Care

Interpretation: From the above chart we can analyse that while P&G provides superior

quality skin care products, a large population buys HUL product because of both its nominal

price and good quality.

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Oral Care

Interpretation: From the above chart we can analyse that both HUL and P&G oral care

products are equally good at price and quality.

Soaps

Interpretation: From the above chart we can analyse that P&G’s soaps attract customers

because of their superior quality while major population buys HUL products because it

provides a good range of soaps for all people.

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Distribution Channels

Q7.Are you satisfied with the availability of the selected products?

a) Yes

b) No

Laundry Products

Interpretation: The above chart shows that both HUL and P&G have good distribution

channels for their laundry products.

Hair Care

Interpretation: The above chart shows that both HUL and P&G have good distribution

channels for their hair care products but HUL’s channels are comparatively better.

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Skin Care

Interpretation: The above chart shows that both HUL and P&G have good distribution

channels for their skin care products but HUL’s channels are comparatively better.

Oral care

Interpretation: The above chart shows that HUL has good distribution channels for its oral

care products while P&G’s channels are comparatively weaker.

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Soaps

Interpretation: The above chart shows that HUL has good distribution channels for its soaps

while P&G’s channels are weaker.

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COMPARATIVE ANALYSIS

Consumers prefer to buy HUL’s products more as compared to P&G products in all

product lines.

HUL provides good quality laundry products at nominal price and although the

quality of P&G products is good but they are dearer than HUL products.

Superior quality motivates consumers to buy P&G skin care products and soaps, while

good quality at nominal price motivates consumers to buy HUL products.

Both HUL and P&G have good distribution channels for their hair care products but

HUL’s channels are comparatively better.

HUL has good distribution channels for its oral care products while P&G’s channels

are comparatively weaker.

HUL has good distribution channels for its oral care products while P&G’s channels

are weaker.

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CONCLUSION

Both HUL and P&G Companies are well establish companies in field of FMCG .

The demand of HUL products is more as compared to P&G and other companies.

The qualities of products provided by the companies are satisfactory.

Hul has lot of variety of the product as compared to other brands in India, means has

long product line.

Distribution channels of HUL are better than that of P&G in India.

HUL provides low price products as compared to P&G and thus attract a lot of price

conscious consumers.

RECOMMENDATIONS

P&G has a huge opportunity to capture the large Indian market as its quality is trusted

by most consumers. It should thus try to launch more of its products in India like that

of HUL.

A large number of consumers in India are price conscious while the P&G products are

comparatively dearer. P&G should thus try to launch products at cheaper rates.

As a lot of people prefer to buy various products from departmental stores, P&G

should make its products easily available there.

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BIBLIOGRAPHY AND WEBLIOGRAPHY

Times of India Newspaper

The Economics Times

The Hindu

DNA Newspaper

www.hul.co.in

www.PG.com

www.wikipedia.com

www.google.com

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