Escolar Documentos
Profissional Documentos
Cultura Documentos
“Scope &
Opportunity of
Vending as a Business”
A STUDY ON
AT
By
Mr SHRAMAN BANIK
Mr MD. ASHIK IMRAN
Mr JISHU PATRA
Mr NAVEEN SHARMA
2009
___________________________ ___________________________
(Signature) (Signature)
__________________________ ___________________________
(Signature) (Signature)
ACKNOWLEDGEMENT
We would like to take this opportunity to thank Ms. Moli Lall ( Registrar of Institute of Marketing
& Management ) for providing us an opportunity to work as a Summer Trainees at Hindustan Unilever
Limited.
We are thankful to our guide, Prof. Mukul Mishra for his continuous guidance and valuable
suggestions, which had led to the successful completion of this project.
I express my sincere gratitude to Mr Anil Kumar Ippagunta (Regional Head Eastern Region),
Mr Abhinandan Banerjee, and Mrs Khusnuma Medhora for their affectionate guidance and valuable
support.
Also my thanks to all the personnel and employees of Hindustan Unilever Limited who helped us
during our summer training project.
Last but not the least, we would like to thank our friends and project partners without whom the
project would not have seen this day.
Mr Shraman Banik
Mr Md. Ashik Imran
Mr Jishu Patra
Mr Naveen Sharma
Introduction
Employee Contribution
Hul vs Nestle.
Strategies to be Implemented.
Challenges to be faced.
Competitive Landscape.
Swot Analysis.
Social Responsibility.
Research Methodology
Conclusion.
Bibliography.
Introduction
The company meets everyday needs for nutrition, hygiene, and personal care, with
brands that help people feel good, look good and get more out of life.
The Indian arm of Unilever Plc, has an Annual Sales in Excess of US$ 2.4 Billion.
A leader across many Categories- Soaps, Detergents, Personal Products, Tea,
Coffee, Branded Staples, Ice Cream and Culinary Products.
The journey began 75 years ago, in 1933, when the Company, was first
incorporated. Today, Hindustan Unilever Limited is a pre-eminent corporation and
its brands are household names across the country. HUL brands and people
have been their unparalleled strengths and they have delivered growth not only for
themselves, but also for all the stakeholders.
Hindustan Unilever Limited have always seen the role beyond just profit curves as
they endeavour to earn the love and respect of every Indian.
This is why social innovation remains at the center of our brands and business
strategy. And it is with your continued support that we have progressed on the path
of sustainable and profitable growth.
Today, HUL is one of India’s Largest exporters of branded Fast Moving Consumer
Goods. It has been recognized by the Government of India as a Golden Super Star
Trading House.
After all, doing well and doing good are two sides of the same coin.
MISSION
VISSION
Hindustan Lever Ltd (HLL) is India's largest Fast Moving Consumer Goods
(FMCG) company. HLL's brands like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair
& Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond,
Kissan, Knorr-Annapurna, Kwality Wall's are household names across the country
and span a host of categories, such as soaps, detergents, personal products, tea,
coffee, branded staples, ice cream and culinary products. These products are
manufactured over 40 factories across India and the associated operations involve
over 2,000 suppliers and associates.
In the late 19th and early 20th century Unilever used to export its products to India.
This process began in 1888 with the export of Sunlight soap, which was followed
by Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim soon after. In
1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing
Company, followed by Lever Brothers India Limited (1933) and United Traders
Limited (1935).
The three companies were merged in November 1956 and the new entity that came
into existence after merger was called as Hindustan Lever Limited.
HLL offered 10% of its equity to the Indian public, and it was the first among the
foreign subsidiaries to do so. Currently, Unilever holds 51.55% equity in the
company while the rest of the shareholding is distributed among about 380,000
individual shareholders and financial institutions.
Brooke Bond entered Indian market in 1900 and in 1903 it launched Red Label tea
in the country. In 1912, Brooke Bond & Co. India Limited was formed. Unilever
acquired Brooke Bond through an international acquisition. Similarly, Lipton's link
with India date back to 1898.
Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited was
incorporated. Pond's (India) had been in Indian market since 1947. It joined the
Unilever ranks through an international acquisition of Chesebrough Pond's USA in
1986.
The liberalization of Indian economy in 1991 and subsequent removal of the
regulatory framework allowed HLL to explore every single product and opportunity
segment, without any constraints on production capacity. The 1990s witnessed a
string of crucial mergers, acquisitions and alliances.
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 Ice-cream business from Cadbury India. In one of
the most talked about events of India's corporate history, the erstwhile Tata Oil
Mills Company (TOMCO) merged with HLL, effective from April 1, 1993. In July
1993, Brooke Bond India and Lipton India merged to form Brooke Bond Lipton
India Limited (BBLIL).
Brooke Bond Lipton India Limited launched Wall's range of Frozen Desserts in
1994 and by the end of the year, HLL entered into a strategic alliance with the
Kwality Icecream Group families. BBLIL merged with HLL, with effect from
January 1, 1996. HLL has also set up a subsidiary in Nepal, Nepal Lever Limited
(NLL). The NLL factory manufactures HLL's products like Soaps, Detergents and
Personal Products both for the domestic market and exports to India. In January
2000, as part of its divestment strategy, the government decided to award 74 per
cent equity in Modern Foods to HLL. In 2002, HLL acquired the government's
remaining stake in Modern Foods.
In February 2007, the company has been renamed to "Hindustan Unilever Limited"
to strike the optimum balance between maintaining the heritage of the Company
and the future benefits and synergies of global alignment with the corporate name
of "Unilever".
“EMPLOYEE CONTRIBUTION OF HINDUSTAN UNILEVER LIMITED”
In typical Unilever fashion, these developments were initiated in all the relevant
regions worldwide. Forerunners include the Gessy Lever plant in Valinhos, Brazil;
the Lever Brothers plant in Utsonomiya, Japan; the Rungkit factory in Surabaya,
Indonesia; and the Elida Gibbs plant in Buxtehude, Germany. In 1997, Unilever
initiated a new corporate management structure called the Manufacturing and
Supply Chain Technology (MAST) Council.
All of Unilever’s business groups, sectors, and corporate management employees
are actively involved. MAST’s aim is to survey and promote best-practice
procedures regarding the purchasing, production, and distribution aspects
company-wide.
One result has been that TPM (Total Productive Maintenance: engineering and
maintenance are progressively integrated into the job description of process-
operators who are retrained as multi-skilled operators) is operational in 155-160
factories of Unilever worldwide. One of the core issues of TPM is to raise the levels
of efficiency of machine and production line utilization from low levels of some 50-
60% to highs of some 85-95%.Where the TPM method has been introduced now in
most production facilities, a new phase is recently started by the introduction in
office functions. In November 2004 the Hindustan Lever general office in Mumbai
was the first office operation world wide to receive the TQM award from the
Japanese institute that audits companies on TQM. The other offices of Unilever
worldwide will follow the coming years.
“Penetration of Vending Machine”
A machine that dispenses small articles such as food, drinks, or cigarettes when a
coin, bill, or token is inserted.
Premix machines are those in which the beverage is churned out of the ready
coffee-and-milk powder and sugar mix. Priced around Rs 10,000-15,000 per unit,
the premix machines are common in the country.
The major players are Nestle, Hindustan Lever Limited (HLL), Tata Tea and Tata
Coffee, who sell the premix powder.
There are around 50,000 premix units in India.
The premium bean-to-cup machines on the other hand provide fresh filter coffee
after the roasting and grinding takes place at the press of a button. The major
players in this segment are Fresh and Honest, Café Coffee Day and Georgia.
The vending machine operator industry includes about 5,000 companies with
combined annual revenue of about $6 billion. Major companies include divisions of
Unilever, Nestle, Tata, Coca-Cola, Compass Group, ARAMARK, and Sodexo. The
industry is fragmented: the top 50 companies are about 40 percent of industry sales.
Lipton, the world's largest selling tea brand, is an iconic brand for the youth
through both its hot and cold formats. Lipton Yellow Label is Unilever's global tea
brand and sells in many countries across the world, with tea bags, packet tea and
Lipton Ice Tea. Lipton Ice Tea, the international ice tea drink, is available in India in
Lemon and Peach flavours. It is available in 250 ml glass bottles, 200 ml vending
cups, 245 ml cans and one litre tetra packs.
The company has created an alliance with Pepsi to market, sell and distribute
Lipton Ice Tea. The company itself has over 15,000 vending machines. The alliance
will further strengthen the out-of-home consumption of tea and coffee
Bru, launched in 1969, created history in the first year of launch by growing to a
record market share of 21%. Ever since, it has grown from strength to strength.
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.
In a nation of tea drinkers, the one brand that signifies tea in India is Brooke Bond –
ever since the launch of Brooke Bond Red Label in 1903. It is India's single largest
tea brand. It has touched millions of consumers with a range of tea offerings
appealing to the diversity of their tastes.It has the strongest foothold amongst any of
the tea brands in India and touches the homes of over 500 million consumers.
Nestle Products.
The rich taste of Nescafe is reflected in its rich history. The beginnings of
NESCAFÉ can be traced all the way back to 1930, when the Brazilian government
first approached Nestlé. Our coffee guru, Max Morgenthaler, and his team set out to
find a way of producing a quality cup of coffee that could be made simply by
adding water, yet would retain the coffee’s natural flavour. After seven long years of
research in our Swiss laboratories, they found the answer.
The new product was named NESCAFÉ – a combination of Nestlé and café.
NESCAFÉ was first introduced in Switzerland, on April 1st, 1938.
Café Coffee Day is a part of India's largest coffee conglomerate, Amalgamated
Bean Coffee Trading Company Ltd. (ABCTCL), a Rs. 450 crore ISO 9002 certified
company and the first to roll out the ‘coffee bar’ concept in India with its first café
in Bangalore. Ever since Cafe Coffee Day's inception in 1996, it has been our
constant endeavour to bring excitement to our customers while they are sitting
sipping coffee at the cafe.
Aqua Java is often recognized as the first among many with its first outlet opening
in 1999 in Kolkata much before any other chain dedicated to coffee.
While many cafes stuck to clichéd products and continue to do so, Aqua Java broke
the norm and came up with exciting creations such as Crunchin’ Java™, Brownie
`Java™, Iced Rocky Road Cappuccino™ etc and the story of innovation and
creation continues.
Godrej, with a reputation for quality and trust built over a period of 100 years has
set new standards in the world of vending machines with its innovative designs and
passion for quality.
Godrej Prima vending machines are designed to give the most reliable vending
experience and aim at providing comfort and enhanced efficiency by maintaining a
true hygienic environment.
The varieties available in their newly launched Vending machines are:
Tea, Coffee, Espresso, Cappuccino, Coffee Mocha, Winear Milenge,
Cocao/Chocolate, Hot Water.
“Market Share Analysis Of Vending Machine”
0%
14%
7%
41%
0%
32%
2%
2%
1%1%
Vendors 192
Canteen 153
Tata Tea 8
Georgia 8
Café Coffee Day 7
Aqua Java 5
Duncans 1
Lipton 35
Nescafe 69
Nexpresso 2
“Total Composition Of 2-Lane and 4-LaneVending Machines
Prevailing in the Market”
2 Lane
Total, 30, 23%
Total (Numbers)
2 Lane 4 Lane
30 102
“Composition Of 2 Lane and 4 Lane Machines in the Market”
Nescafe 2-lane & 4-Lane Machines in the Lipton 2-lane & 4-Lane Machines in the
Market Market
17%
24%
76%
83%
Georgia 2-lane & 4-Lane Machines in the Market Tata Tea 2-lane & 4-Lane Machines in the Market
13%
29%
71%
87%
Georgia 2 Lane Georgia 4 Lane Tata Tea 2 Lane Tata Tea 4 Lane
16 51 6 29 1 7 2 5
“Details of Lipton & Nescafe Vending Machines Prevailing in the Market”
Nescafe Lipton
Company Name Company Emp. Volume No.of Company Name Company Emp. Volume No.of
Address No. mch. Address No. mch.
Shakespeare
Rashmi Metalliks Sarani 40 85 1 Centom Steels & Ferro Alloys Chowringhee Road 25 60 1
Shakespeare
Havells Sarani 80 150 1 ILPA Chowringhee Road 15 35 1
Shakespeare
Star Sarani 60 110 1 CCI Logistics Ltd Chowringhee Road 22 50 1
Chowringhee
SDP & Associates Road 18 50 1 Vrinda Engineers Pvt Ltd Chowringhee Road 20 50 2
Shakespeare
Jain Group Sarani 80 200 2 Kse Pvt Ltd Chowringhee Road 30 70 1
Chowringhee
Universal Transformer Road 10 30 1 IL&FS Park Street 40 100 1
Chowringhee
Maheshwari & Associates Road 25 60 1 Kanoria Chemical Indt Ltd Park Street 40 100 1
Teamlease Services Pvt Ltd Park Street 60 130 1 BENGANI PVT LTD. Chowringhee Road 60 120 1
Neo Mettallics Park Street 35 70 1 Kamel forgings Chowringhee Road 15 30 1
Chowringhee
Orion Calltech Pvt. Ltd Road 100 250 1 Peerless Group Park Street 50 150 2
Chowringhee Diamond Group Of
Citi financial Road 40 90 1 Companies Park Street 90 200 1
Chowringhee
Hotel Sonar Bangla Road 30 80 1 Lenova Park Street 15 40 1
Chowringhee
Videocon India Pvt.Ltd Road 30 80 1 Uti Securities Park Street 20 50 1
Chowringhee
J.M.C.Projects Pvt.Ltd Road 20 60 1 Usha Lubes Pvt.Ltd Park Street 15 40 1
KotakSecurities Pvt.Ltd Park Street 40 100 1 Asian Age Holdings Ltd RUSSEL STREET 50 130 1
ICICI Lombard Pvt.Ltd Park Street 50 120 1 Ocland International Ltd RUSSEL STREET 25 80 1
Kotak Life Insurance Park Street 100 200 2 MELLIUM TEA CO. LTD Park Street 12 25 1
Metlife Insurance Pvt.Ltd. Park Street 70 160 1 KAOTURILAL HARLAL LTD. Camac Street 30 70 1
Shakespeare
MANIPAL Sarani 10 30 1 PRIYANK EXIM PVT.LTD. Middleton Street 75 200 1
Chowringhee
ORIENT INDUSTRIES Road 40 90 1 Tirukuta Mart Services Park Street 40 100 1
Gaumut Infosystems Ltd Park Street 150 350 2 Ratna Sagar Harwals P.Ltd Park Street 30 70 1
Kankei Relationship marketing Park Street 70 150 1 Haldia Group Ltd Shakespeare Sarani 40 100 1
Magma Shrachi Park Street 350 600 1 Gujrat NRE Coke Ltd Camac Street 40 100 1
Cholamandalam Insurance Middleton Street 50 100 1 ICI Paints Middleton Street 35 100 1
RUSSEL
JM Financial STREET 25 80 1 CD Equisearch Shakespeare Sarani 60 120 1
RUSSEL
Cox & Kings STREET 30 80 1 Cadilla Healthcare ZYDUS Middleton Street 40 100 1
RUSSEL
Bayer STREET 200 500 2 EPSON Rawdon Street 15 50 1
Chowringhee
SBI Nri Services Road 30 100 1 DL Kanojia & Company Rawdon Street 10 40 1
Chowringhee
Religare Road 50 120 1 Principal PNB Asset Co Rawdon Street 30 100 1
Chowringhee
Sbi Insurance Road 50 130 1 Royal Sundaram Rawdon Street 70 200 2
RUSSEL
Khadims STREET 50 150 1 Schaefco Internatinal Shakespeare Sarani 10 35 1
RUSSEL
ShareKhan STREET 60 150 1 Karnani Estate GKK P.Ltd Shakespeare Sarani 12 40 1
“Details of Lipton & Nescafe Vending Machines Prevailing in the Market”
Nescafe
SURYA ALLOY INDUSTRIES P. LTD. Camac Street 100 250 1 Consumption (Volume) in Cups
MAHESH TRADERS Camac Street 15 30 1 Nescafe Lipton
LUDLOW JUTE MILL RUSSEL STREET 40 90 1 4745 2755
TATA AIG RUSSEL STREET 20 50 1
2 LANE MACHINE
4 LANE MACHINE
Hindustan Unilever have competition in coffee and tea, with Nestle, Aqua Java,
Georgia, Cafe Coffee Day. Tata is another player along with Godrej which has
recently entered this Vending Business.
There will of course be a number of players entering this segment soon. But the key
factor really is technology and the service mechanism. What we offer our clients is
a service solution where we give them a machine and also maintain it.
We Should also ensure that if our clients want, we can refill the machines with the
products (Premixes) as well.
The machines must also be programmed to provide data that can be very critical for
the companies we deal with as the machine can tell us which product is moving
faster and what the consumption pattern is like.
So we are in that sense providing comprehensive solutions to our clients.
“In order to have a loyal customer base we have to make our brands relevant to our
consumers in their lives. Where, when, how, with whom they drink – all of these
aspects matter. We should communicate our brands in the right way and make our
products available at an arm’s reach.
The challenge facing the tea and coffee industry is how do we make them a relevant
beverage for the rapidly going-out-of-home segment. Tea and coffee as a beverage
continues to dominate the in-home consumption, with a penetration of nearly
90 per cent. However, due to lifestyle changes more and more people are spending
time out of home and is not exactly seen as a beverage on the move. This is the
main area that we should address by developing both superior formats and value.
In India, 90 per cent of all hot beverages are consumed at home. Out-of-home
consumption in India is very low, which means there is a lot of potential for this
market to grow. Hindustan Unilever, thus, should intends to make all-out efforts to
encourage out-of-home-consumption by offering good quality tea and coffee at
affordable prices.
Hence, for North Indians it should offer masala chai with lots of elaichi and milk,
while Mumbaiites may be able to even get cutting chai (a product available in the
city alone) comprising a small amount, about two sips, of tea.
If people in eastern India like flavoured tea, less milk and light tea leaves,
Hindustan Unilever can customise it to match their tastes.
Similarly, for cosmopolitan cities like Mumbai and New Delhi, Hul should plan to
install single tea-vending machines, which would offer varieties such as masala,
elaichi, cardamom and so on, including cutting options.
As a growth strategy, Hindustan Unilever should plan to populate smaller towns
with his vending machines.
Speaking about the market dynamics of the different segments, "The price per cup
(Rs 3-4) is not a major issue at public places and hotel installations. The daily
volume is also high in these places."
On the other hand the initial installation and the recurring costs constitute a major
issue in the case of corporate installations. As a result corporates initially prefer
premix vending machines and later switch over to bean-to-cup machines if required
for a better option.
The most critical aspect is the after sales service as vending machines operate 24
hours. "In the case of hotels the machines have to be up and running 24X7 and the
premix delivery is also crucial. The real challenge is catering to the hotels in small
towns. Reaching the installations in small towns fast is a challenge, and keeping it
running 24X7 is a challenge, and thus Hindustan Unilever must meets this
challenge with its nationwide service network and also by providing substitute
machines in case of breakdown.
These are some of the strategies that I think would really make a positive mark on
the current scenario of the Vending machine business prevailing in the Indian
Economy.
I think it’s important to realize that vending can be applied to any packaged
product, be it a snack, a tetra pack, a bottle of beer, soft drink or a pack of
cigarettes. The range is really large and can apply to any section of industry.
It could even relate to an over-the-counter pharma product. We realized that
the Indian market is attaining a level of understanding and acceptance in terms
of hi-tech products which lend convenience and instant availability 24 hours a
day, seven days a week. This is very vital as today we have BPOs and software
companies that work round the clock. This has become a necessity.
There should be a complete range of vending machines which can dispense
any packaged product plus a hi-tech range of coffee and tea vending machines
with 16-18 options ranging from black coffee to latte. This again is must be
made available to a cross-section that ranges from a corporate environment to a
retail environment.
The coin mechanisms and the bill readers are also types of vending machines
which are tamper- and pilfer-proof and therefore suited to an Indian
environment.
Location services: The salesperson may say that the company employs an
expert locator to find prime locations for its machines. Actually, the company's
assistance usually ends once it finds an establishment willing to have a
vending machine on its premises. An operator who starts with poor locations
cannot hope to compete with professional vending companies to capture good
locations. Poor locations are not only unprofitable for sales but also invite
vandalism.
Many times the so called expert locator has no experience with local vending
conditions, and even an experienced vending operator would have difficulty
finding profitable vending locations quickly in a city other than his own.
Packaging limitations: Some vending machine offers are for machines which
can accommodate only merchandise which is packaged in a special way. This
might mean that a special insert or holder is required for the product so that it
can be purchased only from the promoter.
Anyone who wants to create a brand or would like to enhance sales of their
products should be looking at the out-of-home market. This is exactly where the
business is and one of the primary means of taking this further is through vending
machines, which offers you branding visibility and point of sale.
The second challenge is perhaps space availability. Corporate offices are not a
problem; retail outlets or retail points might however have a small issue with
space, which can be overcome.
The third challenge is to educate the customer who is not aware of such a
system and needs to get acclimatized to it.
“Competitive Landscape”
Consumer spending and business growth drive demand, since many vending
machines are located in workplaces. The profitability of individual companies
depends on effective merchandising, reliable service and maintenance, and
securing prime locations.
Large companies can offer a wide product selection, service large accounts,
and enjoy scale advantages in purchasing, finance, and distribution. Small
companies can compete effectively by serving a local market, providing
superior customer service, or offering unique products.
The all India coffee powder market size is 39,360 tonne per annum (tpa).
Of that the share of instant coffee is 18,700 tpa and that of filter coffee powder
is 20,660 tpa. And within the filter coffee powder segment the share of pure
100 per cent coffee powder is 200 tonne per annum and that of coffee - chicory
blended powder is 20,460 tonne per annum.
Follow Up Interested in Negotiation Negotiation Not Interested in
Later. Installation. after 15 days. after a week. Installation.
25 20 25 15 365
HLL's Green Label is a mix of 53% coffee and 47% chicory, whereas Tata's
Mr. Bean and Alive coffee powder is a mix of 70:30 coffee and chicory.
In tea vending business the only other player apart from Duncans in the
domestic iced tea market is multinational Hindustan Lever.
Tata Tea being the second largest tea player. However, Coca-Cola had rolled
out its Georgia brand of tea and coffee in a nationwide launch on November
2002.
Packet tea accounts for a little over half the total tea consumption of around
550 million kgs in the country. Hindustan Lever is the leader with a 30 per cent
market share, followed by Tata Tea. Duncans is ranked third with around 7 per
cent market share.
Details below on the basis of the companies visited during the survey period.
Feedback from the Market
25, 6%
20, 4%
25, 6%
15, 3%
365, 81%
“SWOT Analysis”
Strengths
Customised solutions.
Branded Products.
Great Value.
Weakness
In the branded tea segment (a Rs5,000 crore market), Tata Tea Ltd
recently displaced HUL from the top slot.
HUL’s market share dropped to 18.6% in volume terms while
Tata Tea’s was 19.2%. In value terms, however, HUL remains ahead
with a 24% market share as against Tata Tea’s share of 21%.
Opportunities
Threat
For people leading busy lives, the vending machine is nothing short of a blessing in
disguise. By one estimate, there are some 75,000 machines in the coffee and tea
segment alone in the country. Add to that categories such as softdrinks, soups,
juices, snacks and chocolates – segments that use vending – and it’s a northward
climb for the machine count. “There is enormous potential for vending in the
country,”
Let us take an example of the convenience with the use of vending machine.
Tina wants her cup of coffee. She’s been out the whole day and is too tired to drop
by at her favourite café on her way back home. She chooses instead to help herself
to an instant coffee at the vending machine near the railway station. So is the case
with Mohit, who has just stepped into the office after meeting key clients. He wants
to unwind. So how about a cuppa hot chocolate out of the vending machine near the
pantry?
“In a saturated market like England, there are 40,000 vending machines installed
every year. We’ve not yet reached such a stage.
At about Rs 4,000 crore, the current market size for vending in the country isn’t
small either. Compare it with a country like Japan, however, which has over 6
million machines selling everything from food & beverages, cigarettes, tickets etc,
and India seems way off the mark. The US market, on the other hand, has the
highest number of vending machines in the world with a figure of 8.5 millions
(Japan, for the record, is a close second in terms of density of machines). Segments
that have taken to vending in the US vary from food & beverages, stationary,
merchandise (cards, gifts, toys), music, entertainment etc.
The importance of Food and its role in Indian culture can be well understood by its
sheer size. Food, Beverages and Tobacco (FB&T) constitutes the largest
consumption category in India.
FB&T is estimated at US $155bn (Rs7.1 trillion) and accounts for almost 40% of
the total consumer spending.
Out of the total food market, the Indian Processed Food market stands at US $70bn
while the Value-added Processed Food segment is around US$22bn.
The Food & Beverages industry in India is one of the largest in terms of production,
consumption, export and growth prospects.
While the overall market size is significant, the Indian F&B category is still at a
very nascent stage of development.
With 70% of India's population still living in the rural areas, the urban populace
accounts for a mere third of the total food consumption currently.
Only a third of the Food Processing and Packaging industry in India is organised.
Almost all agricultural production is unorganised.
Organised Food Retailing constitutes less than 1% of the Food distribution market.
In 2000, Unilever began publishing its Social Review as a practical format for
Unilever statements regarding Corporate Social Responsibility. In 2002, the Social
Review analysed the year 2001, explaining its history, structure and immediate
future as the internal way of monitoring social issues the company wants to
promote. In 1996, Unilever formulated it’s Corporate Purpose, a kind of mission
statement, which formed the basis for its “Code of Business Principles”, a kind of
operational standard of Corporate Purpose. This Code was revised in 2001–2002 to
make it compatible with the recently revised OECD Guidelines for Multinational
Enterprises (published in June 2000) and to take into account the UN Global
Compact. It basically declares that Unilever will abide by the OECD Guidelines.
ILO regulations:
_ The ILO Convention on the Minimum Working Age, Convention 182. This
convention, which prohibits employing anyone under 18 years of age, is not only
applicable to the company and its subsidiaries, but also to suppliers and
subcontractors.
_ The ILO Declaration on Fundamental Principles and Rights at Work. In some
countries, Unilever began monitoring its employees on the basis of ethnicity, gender
and other diversity issues. Some facts: of a total of 18,906 managers worldwide
4,099 (21.6%) were women in [2000] as compared to 2,110 in 1992. In 2001, no
woman held a top management position but at middle management levels, over one
quarter of all managers worldwide were women, approximately twice as many as in
1992. The top 300 managers came from 33 different countries.
Important developing countries function as the training stage for expatriates from
other countries: Brazil had 52 expatriates from other countries, India had 10, while,
on the other hand, 50 Brazilian and 60 Indian managers were working in foreign
countries. The impression seems to be that Unilever installs Indian managers to
improve operation efficiency in China and to train new Chinese management
candidates.
In 2000, Unilever announced that it sought to develop
China’s infrastructure to reach its goal of long-term market leadership in all of its
relevant product categories.
This is already the strategy in India with Hindustan Lever. Indian managers can
play an important role by utilising their own experiences.
The focus is on distilling methods and forms in the near future to help
measure social conduct on various issues as gathered from these pilot projects. The
methods and forms will eventually be applied to all Unilever operations worldwide.
It is important to mention the topics included in the first Social Review:
_ The creation of wealth and sharing of wealth: various stakeholders
_ Standards on health and safety
_ Investing in people: training and health care
_ Respect and dignity in the workplace
_ Valuing diversity
_ Meeting everyday needs of consumers worldwide
_ Quality and safety standards
_ Sustainability (in agriculture/ fishing/ water conservation: related to the
Environmental report)
_ Investments in communities
Unilever in Social Review announced that it would complete its CSR road map and
implement its roll-out worldwide.
“Research Methodology”
Finding out basic but valuable information from market is the key to
good marketing.
Research is the only way you can do this. The next level is to get out of
the office and employ a mystery shopper.
There's no better way of testing than by using the services and products
directly.
If we do our marketing research fully enough then we should be able to
organize our business in a way that gives us a clear advantage afterwards.
In this project how we are collecting our data from market is a very
important aspect.
Data Collection
In recording data, keep two simple rules in mind to avoid problems later:
As you record your data, it may be helpful to think about them as the
legal tender of research—the currency researchers cash in when they apply
for grants, publish, are considered for promotion, and enter into business
ventures. To have and hold their value, research data must be properly
recorded.
Research & Development
The highlight of HLRC's work, in soaps and detergents, has been the research
related to soiled garments, with interesting observations on its causes.
Valuable insights have also been gathered in understanding soap phases and how
such soap properties as the feel, lather, colour, appearance, size and shape can be
improved, resulting in better performance. The resultant product improvements
have been made within tight cost regimes.
In popular foods, the area of focus was Chapatis. Efforts were made to
understand what makes Chapatis softer and identifying wheat types responsible for
softness. Issues relating to the stability of Iodine in salt were addressed.
In tea, the programme was focussed to understand what impacts tea colour,
aroma and taste to make better blends; also to examine how nutrition in tea can be
improved and enhanced.
Following upon the proposal outlined in last year's Directors Report, your
Company concluded a technology and knowhow collaboration agreement with
Unilever Pie., after securing the requisite approvals and permissions from the
Reserve Bank of India and the Government of India. The agreement, which
commenced from September 1, 1999, is for a period of 24 years and envisages a
royalty of one per cent on domestic and exports sales of relevant products, covered
by the Agreement.
“Conclusion”
The business is confident of growing its Tea & Coffee business through
innovation coupled with an aggressive marketing and rural distribution drive.
In order to strengthen its share in the premium segment of the roasted and ground
coffee market, a new product, Brooke Bond Green Label Classic, was launched.
This product contains 90% premium coffee and 10% chicory, and delivers a
superior cup.
Books:
Websites:
www.google.co.in
www.hulfnbservices.com
www.nestle.com
www.encyclopedia.com
www.managementparadise.com
Business Magazines: