A RESEARCH REPORT

On

A STUDY ON MARKETING STRATEGIES OF FMCG SECTOR WITH RELATION TO HUL

For the Ful !l"ent o the Re#u!re"ent For The A$%r& o De'ree o

MASTER OF (USINESS ADMINISTRATION

O

Utt%r Pr%&e)h Te*hn!*%l Un!+er)!t,- Lu*.no$

UNDER THE GUIDANCE OF/ 0I1IT MITAL (,

SUDHIR KUMAR
Roll No/ 2324456237

NOIDA INSTITUTE OF ENGINEERING 8 TECHNOGY 9A !l!%te& to UTTAR PRADESH TECHNICAL UNI0ERSITY: PLOT NO; 27 KP II GREATER NOIDA 9UP:

DECLARATION
I SUDHIR KUMAR Roll No; 2324456237 Stu&ent o M(A I0 th Se"e)ter- Ye%r 3622<23 here=, &e*l%re th%t the Re)e%r*h Pro>e*t Re?ort !) t!tle& A Stu&, on M%r.et!n' Str%te'!e) o FMCG W!th Rel%t!on to HUL =e!n' )u="!tte& !n ?%rt!%l ul !ll"ent or the %$%r& o M(A &e'ree =, UPTU LUCKNOW !) ", or!'!n%l $or. o Re)e%r*h %n& !t h%) not =een )u="!tte& to NIET or the %$%r& o %n, &e'ree;

D%te@@@@@ Pl%*e@@@@;;; SUDHIR KUMAR

ACKNOWLEDGEMENT
Throu'h th!) re?ort- I t%.e the o??ortun!t, to eA?re)) ", )!n*ere 'r%t!tu&e %n& th%n. ulne)) to %ll tho)e $ho h%+e hel?e& "e !n "%.!n' ", &!))ert%t!on re?ort; F!r)t o %ll I $oul& l!.e to th%n. ;NIET- or h%+!n' )u*h % ),)te" !n ?l%*e- $here )tu&ent) %re '!+en o??ortun!t!e) to le%rn %=out the!r %re%) o !ntere)t; I $oul& l!.e to th%n. %ll the M(A %*ult, for ?ro+!&!n' $!th h!) %=le 'u!&%n*e %n& +!)!on%r, )u??ort to "e $!thout $h!*h th!) ?ro>e*t $oul& not =een ?o))!=le;

SUDHIR KUMAR 9M(A I0 Se";:

TABLE OF CONTENT
S;No CHAPTER TITLE
1 Intro&u*t!on 1.1Brief Introduction to the topic 2 3 O=>e*t!+e o Stu&, Nee& 8 S*o?e o Stu&, 20-21 22-30

PAGE NO
1-19

L!ter%ture re+!e$ I"?ort%n*e o the )tu&, Re)e%r*h Metho&olo', 3.1 "e#e$rch %ro&'e( 3.2 "e#e$rch O&)ecti*e 3.3 +$(p'e #i,e 3.4 +$(p'e Techni-ue D%t% An%l,)!) 8 Inter?ret%t!on 4.1 /$t$ An$'0#i# 4.2 /$t$ Interpret$tion Re*o""en&%t!on) 8 Su''e)t!on) Conc'u#ion Findin2# "eco((end$tion# 3 +u22e#tion#

31-40 41-4 4!- 0

1-!!

!.-.2

9 10

AnneAure (!=l!o'r%?h,

.3-. .!-.!

CHAPTER < 2
INTRODUCTION OF THE TOPIC

INTRODUCTION
MARKET O0ER0IEW/ The o*er$'' picture of the corpor$te #ector e(er2in2 $fter the fir#t -u$rter re#u't #ho4# th$t the te(po of the Indi$n econo(05# inte2r$tin2 into the 2'o&$' econo(0 i# 2$therin2 (o(entu( $t $ r$pid p$ce. Thi# c$n &e #een fro( the ri#e in out#ourcin2 in the Infor($tion Techno'o20 6IT7 $nd IT-&$#ed #er*ice #ector#8 2ro4th in e9port-i(port tr$de $nd in 2'o&$' $c-ui#ition#. "$pid ur&$ni,$tion8 incre$#ed 'iter$c0 $nd ri#in2 per c$pit$ inco(e8 h$*e $'' c$u#ed r$pid 2ro4th $nd ch$n2e in de($nd p$ttern#8 'e$din2 to $n e9p'o#ion of ne4 opportunitie#. Con#u(ption de($nd for con#u(er i# incre$#in2 4hich c$n &e #een fro( the i(pro*e(ent in the perfor($nce of the f$#t (o*in2 con#u(er 2ood# 6F:C;7 co(p$nie#.

FMCG Industry Trends and Players:Tren&)/< E#ti($ted $t $round <+= 14. &i''ion 6$ppro9i($te'0 "#.!98 000 crore#7 in 20118 Indi$5# f$#t (o*in2 con#u(er 2ood# 6F:C;7 #ector i# the fourth '$r2e#t indu#tri$' #ector in the countr05# e9p$ndin2 econo(0. It h$# $ #tron2 :NC pre#ence $nd i# ch$r$cteri#ed &0 $ 4e'' e#t$&'i#hed di#tri&ution net4or>8 inten#e co(petition &et4een the or2$ni#ed $nd unor2$ni#ed #e2(ent# $nd 'o4 oper$tion$' co#t. A*$i'$&i'it0 of >e0 r$4 ($teri$'#8 che$per '$&our co#t# $nd pre#ence $cro## the entire *$'ue ch$in 2i*e# Indi$ $ co(petiti*e $d*$nt$2e. The F:C; ($r>et i# #et to tre&'e fro( <+= 11.! &i''ion in 2003 to <+= 33.4 &i''ion in 201 . %enetr$tion 'e*e' $# 4e'' $# per c$pit$ con#u(ption in (o#t product c$te2orie# 'i>e )$(#8 toothp$#te8 #>in c$re8 h$ir 4$#h etc in Indi$ i# 'o4 indic$tin2 the unt$pped ($r>et potenti$'. Bur2eonin2 Indi$n popu'$tion8 p$rticu'$r'0 the (idd'e c'$## $nd the rur$' #e2(ent#8 pre#ent# $n opportunit0 to ($>er# of &r$nded product# to con*ert con#u(er# to &r$nded product#. ;ro4th i# $'#o 'i>e'0 to co(e fro( con#u(er ?up2r$din2? in the ($tured product c$te2orie#.

Another i# the #tri>in2 contr$#t &et4een the rur$' $nd ur&$n #e2(ent# - the $*er$2e con#u(ption &0 rur$' hou#eho'd# i# (uch 'o4er th$n their ur&$n counterp$rt#. Lo4 penetr$tion indic$te# the e9i#tence of un#$tur$ted ($r>et#8 4hich $re 'i>e'0 to e9p$nd $# the inco(e 'e*e'# ri#e. Thi# pro*ide# $n e9ce''ent opportunit0 for the indu#tr0 p'$0er# in the for( of $ *$#t'0 unt$pped ($r>et. :oreo*er8 per c$pit$ con#u(ption in (o#t of the F:C; c$te2orie# 6inc'udin2 the hi2h penetr$tion c$te2orie#7 in Indi$ i# 'o4 $# co(p$red to &oth the de*e'oped ($r>et# $nd other e(er2in2 econo(ie#. A ri#e in per c$pit$ con#u(ption8 4ith i(pro*e(ent in inco(e# $nd $fford$&i'it0 $nd ch$n2e in t$#te# $nd preference#8 i# further e9pected to &oo#t F:C; de($nd. ;ro4th i# $'#o 'i>e'0 to co(e fro( con#u(er @up2r$din2@8 e#peci$''0 in the ($tured product c$te2orie#. :o#t Indi$n F:C; co(p$nie# focu# on ur&$n ($r>et# for *$'ue $nd rur$' ($r>et# for *o'u(e#. The tot$' ($r>et h$# e9p$nded fro( <+= 1..! &i''ion in 1992-93 to <+= 22 &i''ion in 1991-99 $t current price#. "ur$' de($nd con#tituted $round 2. per cent of the tot$' de($nd in 1991-99. Aence8 rur$' ($r>etin2 h$# &eco(e $ critic$' f$ctor in &oo#tin2 &otto('ine#. A# $ re#u't8 (o#t co(p$nie#? h$*e offered 'o4 price product# in con*enient p$c>$2in2. The#e contri&ute the ($)orit0 of the #$'e# *o'u(e. In co(p$ri#on8 the ur&$n e'ite con#u(e $ proportion$te'0 hi2her *$'ue of F:C;#8 &ut not *o'u(e.

PLAYERS/
A di#tinct fe$ture of the F:C; indu#tr0 in Indi$ i# the pre#ence of do(e#tic $# 4e'' $# 2'o&$' p'$0er# throu2h their #u&#idi$rie# 6A<L8 %3;8 $nd Ne#t'e7.

Do"e)t!* Pl%,er)/<
Britannia India Ltd (BIL):Brit$nni$ Indi$ Ltd 4$# incorpor$ted in 1911 $# Brit$nni$ Bi#cuit Co Ltd $nd current'0 the ;roupe /$none 6;/7 of Fr$nce 6$ 2'o&$' ($)or in the food proce##in2 &u#ine##7 $nd the Nu#'i B$di$ ;roup ho'd $ 4 .3 per cent e-uit0 #t$>e in BIL throu2h AIBA Ltd 6$ 0C 0 )oint *enture7. BIL i# $ do(in$nt p'$0er in the Indi$n &i#cuit indu#tr08 4ith ($)or &r$nd# #uch $# Ti2er 2'uco#e8 :$rie 2o'd8 Fift0-Fift08 ;ood /$08 %ure :$2ic8 Bour&on etc. The co(p$n0 ho'd# $ 40 per cent ($r>et #h$re in the o*er$'' or2$ni,ed &i#cuit ($r>et $nd h$# $ c$p$cit0 of 3008000 tonne per $nnu(. Current'08 the &$>er0 product &u#ine## $ccount# for 99.1 per cent of BIL?# turno*er. The co(p$n0 reported net #$'e# of <+= 210 (i''ion in 2002-03. Brit$nni$ Indu#trie# Ltd 6BIL7 p'$n# to incre$#e it# ($nuf$cturin2 c$p$cit0 throu2h out#ourced contr$ct ($nuf$cturin2 $nd $ ;reenfie'd p'$nt in <tt$r$nch$' to e9p$nd it# #h$re in the do(e#tic &i#cuit $nd confectioner0 ($r>et.

D%=ur In&!% Lt&; /<

E#t$&'i#hed in 11148 /$&ur Indi$ Ltd i# the '$r2e#t Indi$n F:C; $nd $0ur*edic product# co(p$n0. The 2roup co(pri#e# /$&ur Fin$nce8 /$&ur Nep$' %*t Ltd8 /$&ur E20pt Ltd8 /$&ur O*er#e$# Ltd $nd /$&ur Intern$tion$' Ltd. The product portfo'io of the co(p$n0 inc'ude# he$'th c$re8 food product#8 n$tur$' 2u(# 3 $''ied che(ic$'#8 ph$r($8 $nd *eterin$r0 product#. +o(e of it# 'e$din2 &r$nd# $re /$&ur A('$8 /$&ur Ch0$4$npr$#h8 D$ti>$8 A$)(o'$8 L$' /$nt :$n)$n8 %udin A$r$ $nd the "e$' r$n2e of fruit )uice#. The co(p$n0 reported net #$'e# of <+= 211 (i''ion in 2003-04. /$&ur h$# fir(ed up p'$n# to re#tructure it# #$'e# $nd di#tri&ution #tructure $nd focu# on it# core &u#ine##e# of f$#t-(o*in2 con#u(er 2ood product# $nd o*er-the-counter dru2#. <nder the re#tructured #et-up8 the co(p$n0 p'$n# to incre$#e direct co*er$2e to 2$p out'et# $nd 2$p to4n# 4here /$&ur i# not pre#ent. A ro$d($p i# $'#o &ein2 prep$red to r$tion$'i#e the #toc>i#t#? net4or> in different re2ion# &et4een *$riou# product# $nd di*i#ion#.

10

In&!%n To=%**o Cor?or%t!on Lt& 9ITCL:B< Indi$n To&$cco Corpor$tion Ltd i# $n $##oci$te of Briti#h A(eric$n To&$cco 4ith $ 3. per cent #t$>e. In 1910 the co(p$n0?# oper$tion# 4ere re#tricted to tr$din2 in i(ported ci2$rette#. The co(p$n0 ch$n2ed it# n$(e to ITC Li(ited in the (id #e*entie# 4hen it di*er#ified into other &u#ine##e#. ITC i# one of Indi$?# fore(o#t pri*$te #ector co(p$nie# 4ith $ turno*er of <+= 2.! &i''ion. Bhi'e ITC i# $n out#t$ndin2 ($r>et 'e$der in it# tr$dition$'. Bu#ine##e# of ci2$rette#8 hote'#8 p$per&o$rd#8 p$c>$2in2 $nd $2rie9port#8 it i# r$pid'0 2$inin2 ($r>et #h$re e*en in it# n$#cent &u#ine##e# of &r$nded $pp$re'8 2reetin2 c$rd# $nd p$c>$2ed food# $nd confection$r0. After the (er2er of ITC Aote'# 4ith ITC Ltd8 the co(p$n0 4i'' r$(p up it# 2ro4th p'$n# &0 #tren2thenin2 it# $''i$nce 4ith +her$ton $nd throu2h focu# on intern$tion$' pro)ect# in /u&$i $nd the F$r E$#t. ITC?# #u&#idi$r08 Intern$tion$' Tr$*e' Aou#e 6ITA7 $'#o $i(# to '$unch ne4 product# $nd #er*ice# &0 4$0 of &outi-ue# th$t 4i'' pro*ide co(p'ete tr$*e' #er*ice#.

11

M%r!*oB< :$rico i# $ 'e$din2 Indi$n ;roup incorpor$ted in 1990 $nd oper$tin2 in con#u(er product#8 $e#thetic# #er*ice# $nd 2'o&$' $0ur*edic &u#ine##e#. The co(p$n0 $'#o ($r>et# food product# $nd di#tri&ute# third p$rt0 product#. :$rico o4n# 4e''->no4n &r$nd# #uch $# %$r$chute8 +$ffo'$8 +4ee>$r8 +h$nti A('$8 A$ir 3 C$re8 "e*i*e8 :edi>er8 Oi' of :$'$&$r $nd the +i' r$n2e of proce##ed food#. It h$# #i9 f$ctorie#8 $nd #u&-contr$ct f$ci'itie# for production. In 2003-048 the co(p$n0 reported $ turno*er of <+= 200 (i''ion. The o*er#e$# #$'e# fr$nchi#e of :$rico?# &r$nded F:C; product# i# one of the '$r2e#t $(on2#t Indi$n co(p$nie#. It i# $'#o the '$r2e#t Indi$n F:C; co(p$n0 in B$n2'$de#h. The co(p$n0 p'$n# to c$pture 2ro4th throu2h con#t$nt re$'i2n(ent of portfo'io $'on2 hi2her ($r2in 'ine# $nd focu# on *o'u(e 2ro4th8 con#o'id$tion of ($r>et #h$re#8 #tren2thenin2 f'$2#hip &r$nd# $nd ne4 product offerin2# 62-3 ne4 product '$unche# $re e9pected in 2004-0 7. It $'#o p'$n# to e9p$nd it# intern$tion$' &u#ine## to %$>i#t$n.

12

N!r"% L!"!te&B<
Nir($ Ltd8 pro(oted &0 E$r#$n&h$i %$te'8 i# $ ho(e2ro4n F:C; ($)or 4ith $ pre#ence in the deter2ent $nd #o$p ($r>et#. It 4$# incorpor$ted in 1910 $# $ pri*$te co(p$n0 $nd 4$# 'i#ted in fi#c$' 1994. A##oci$te co(p$nie#? Nir($ /eter2ent#8 +hi*$ +o$p# $nd /eter2ent#8 Nir($ +o$p# $nd /eter2ent# $nd Ni'nit$ Che(ic$'# 4ere (er2ed 4ith Nir($ in 199!-199.. The co(p$n0 h$# $'#o #et up $ 4ho''0 o4ned #u&#idi$r0 Nir($ Con#u(er C$re Ltd8 4hich i# the #o'e ($r>etin2 'icen#ee of the Nir($ &r$nd in Indi$. Nir($ $'#o ($>e# $'f$ o'efin8 f$tt0 $cid $nd 2'0cerine. Nir($ i# one of the (o#t #ucce##fu' &r$nd# in the rur$' ($r>et# 4ith e9tre(e'0 'o4 priced offerin2#. Nir($ h$# p'$nt# 'oc$ted in ;u)$r$t8 :$dh0$ %r$de#h $nd <tt$r %r$de#h. It# ne4 LAB p'$nt i# 'oc$ted in B$rod$ $nd the #od$ $#h co(p'e9 i# 'oc$ted in ;u)$r$t. Nir($ h$# #tron2 di#tri&utor #tren2th of 400 $nd $ ret$i' re$ch of o*er 1 (i''ion out'et#. The co(p$n0 reported 2ro## #$'e# of <+= !1 (i''ion in 2003-04. It p'$n# to continue to t$r2et the (id $nd ($## #e2(ent# for future 2ro4th.

13

Fore!'n ?l%,er)B< C%&=ur, In&!% Lt& 9CIL:/<

C$d&ur0 Indi$n Ltd i# $ 93. per cent #u&#idi$r0 of C$d&ur0 +ch4eppe# %'c8 <E8 $ 2'o&$' ($)or in the choco'$te $nd #u2$r confectioner0 indu#tr0. CIL 4$# #et up $# $ tr$din2 concern in 194. $nd #u&#e-uent'0 &e2$n it# oper$tion# 4ith the #($'' #c$'e proce##in2 of i(ported choco'$te# $nd food drin>#. CIL i# current'0 the '$r2e#t p'$0er in the choco'$te indu#tr0 in Indi$ 4ith $ .0 per cent ($r>et #h$re. The co(p$n0 i# $'#o $ >e0 p'$0er in the ($'ted food#8 coco$ po4der8 drin>in2 choco'$te8 ($'t e9tr$ct food $nd #u2$r confectioner0 #e2(ent. The co(p$n0 h$d $'#o entered the #oft drin># ($r>et 4ith &r$nd# 'i>e ?C$n$d$ /r0? $nd ?Cru#h?8 4hich 4ere #u&#e-uent'0 #o'd to Coc$ Co'$ in 1999. E#t$&'i#hed &r$nd# inc'ude /$ir0 :i'>8 %er>8 Cr$c>'e8 +t$r8 Fc'$ir#8 ;e(#8 Fructu#8 Bourn*it$ etc. The co(p$n0 reported net #$'e# of <+= 1!0 (i''ion in 2003. The co(p$n0 p'$n# to incre$#e the nu(&er of ret$i' out'et# for future 2ro4th $nd ($r>et e9p$n#ion.

C%r'!llB<
C$r2i'' Inc i# one of the 4or'd?# 'e$din2 $2ri-&u#ine## co(p$nie# 4ith $ #tron2 pre#ence in proce##in2 $nd (erch$ndi#in28 indu#tri$' production $nd fin$nci$' #er*ice#. It# product# $nd 2eo2r$phic di*er#it0 6o*er 40 product 'ine# 4ith $ direct pre#ence in o*er ! countrie# $nd &u#ine## $cti*itie# in $&out 130 countrie#7 $# 4e'' $# it# *$#t co((unic$tion $nd tr$n#port$tion net4or> he'p opti(i,e co((odit0 (o*e(ent# $nd pro*ide co(petiti*e $d*$nt$2e. C$r2i'' Indi$ 4$# incorpor$ted in Apri' 199! $# $ 100 per cent #u&#idi$r0 of C$r2i'' Inc of the <+. It i# en2$2ed in tr$din2 in #o0$&e$n (e$'#8 4he$t8 edi&'e oi'#8 ferti'i#er# $nd other $2ricu'tur$' co((oditie# &e#ide# ($r>etin2 &r$nded p$c>$2ed food#. It h$# $'#o #et up it# o4n $nchor$2e f$ci'itie# $t "o#0 ne$r G$(n$2$r in ;u)$r$t for efficient h$nd'in2 of it# i(port $nd e9port con#i2n(ent#.

14

Co*% Col%/<
Coc$-Co'$ #t$rted it# Indi$ oper$tion# in 1993. The Coc$-Co'$ #0#te( in Indi$ co(pri#e# 2. 4ho''0 co(p$n0-o4ned &ott'in2 oper$tion# $nd $nother 1. fr$nchi#ee-o4ned &ott'in2 oper$tion#. A net4or> of 29 contr$ct-p$c>er# $'#o ($nuf$cture# $ r$n2e of product# for the co(p$n0. Le$din2 Indi$n &r$nd# Thu(# <p8 Li(c$8 :$$,$8 Citr$ $nd ;o'd +pot e9i#t in the Co(p$n0?# intern$tion$' f$(i'0 of &r$nd# $'on2 4ith Coc$-Co'$8 /iet Co>e8 Ein'e08 +prite $nd F$nt$8 p'u# the +ch4eppe# product r$n2e. /urin2 the p$#t dec$de8 the Coc$-Co'$ #0#te( h$# in*e#ted (ore th$n <+= 1 &i''ion in Indi$. In 20038 Coc$-Co'$ Indi$ p'ed2ed to in*e#t $ further <+= 100 (i''ion in it# oper$tion#. Co'2$te-%$'(o'i*e Indi$ Co'2$te %$'(o'i*e Indi$ i# $ 1 per cent #u&#idi$r0 of Co'2$te %$'(o'i*e Co(p$n08 <+A. It i# the ($r>et 'e$der in the Indi$n or$' c$re ($r>et8 4ith $ 1 per cent ($r>et #h$re in the toothp$#te #e2(ent8 41 per cent ($r>et #h$re in the toothpo4der ($r>et $nd $ 30 per cent #h$re in the tooth&ru#h ($r>et. The co(p$n0 $'#o h$# $ pre#ence in the pre(iu( toi'et #o$p #e2(ent $nd in #h$*in2 product#8 4hich $re #o'd under the %$'(o'i*e &r$nd. Other 4e''>no4n con#u(er &r$nd# inc'ude Ch$r(i# #>in cre$( $nd A9ion di#h 4$#h. The co(p$n0 reported #$'e# of <+= 22! (i''ion in 2003-04. The co(p$n0?# #tr$te20 i# to focu# on 2ro4in2 *o'u(e# &0 i(pro*in2 penetr$tion throu2h $22re##i*e c$(p$i2nin2 $nd con#u(er pro(otion#. The co(p$n0 p'$n# to '$unch ne4 product# in or$' $nd per#on$' c$re #e2(ent# $nd i# prep$red to continue #pendin2 on $d*erti#in2 $nd ($r>etin2 to 2$in ($r>et #h$re. :$r2in 2$in# $re &ein2 t$r2eted throu2h efficient #upp'0 ch$in ($n$2e(ent $nd &rin2in2 do4n co#t of oper$tion#.

H 1 He!nC Co; B<

A <+= 1.4 &i''ion A(eric$n food ($)or8 A G Aein, Co co(pri#e# 48000 #tron2 &r$nd &uffet in inf$nt food8 #$uce# $nd condi(ent#. The co(p$n0 4$# the fir#t to co((ence ($nuf$cturin2 $nd &ott'in2 of to($to >etchup in 11.!. In Indi$8 Aein, h$# $ pre#ence throu2h it# 100 per cent #u&#idi$r0 Aein, Indi$ %*t Ltd. Aein, $c-uired the con#u(er product# di*i#ion of ph$r($ceutic$' ($)or ;'$9o in 1994. Aein,?# product r$n2e in Indi$ con#i#t# of Co(p'$n (i'> &e*er$2e8 he$'th drin> ;'ucon-/8 inf$nt food F$re9 $nd N0ci' pric>'0 he$t po4der8 &e#ide# the Aein, >etchup r$n2e.

H!n&u)t%n Un!le+er Lt& 9HUL:B<

Aindu#t$n <ni'e*er Ltd i# $ 1 per cent o4ned #u&#idi$r0 of the An2'o-/utch 2i$nt <ni'e*er8 4hich h$# &een e9p$ndin2 the #cope of it# oper$tion# in Indi$ #ince 1111. It i# the countr0?# &i22e#t con#u(er 2ood# co(p$n0 4ith net #$'e# of <+= 2.4 &i''ion in 2003. A<L i# $(on2#t the top fi*e e9porter# of the countr0 $nd $'#o the &i22e#t e9porter of te$ $nd c$#tor oi'. The product portfo'io of the co(p$n0 inc'ude# hou#eho'd $nd per#on$' c$re product# 'i>e #o$p#8 /eter2ent#8 #h$(poo#8 #>in c$re product#8 co'our co#(etic#8 deodor$nt# $nd fr$2r$nce#. It i# $'#o the ($r>et 'e$der in te$8 proce##ed coffee8 &r$nded 4he$t f'our8 to($to product#8 ice cre$(8 )$(# $nd #-u$#he#. A<L en)o0# $ for(id$&'e di#tri&ution net4or> co*erin2 o*er 38400 di#tri&utor# $nd 1! (i''ion out'et#. In the future8 the co(p$n0 p'$n# to concentr$te on it# her&$' he$'th c$re portfo'io 6A0u#h7 $nd confection$r0 &u#ine## 6:$97. It# #tr$te20 to 2ro4 Inc'ude# focu##in2 on the po4er &r$nd#? 2ro4th throu2h con#u(er re'e*$nt infor($tion8 cro## c$te2or0 e9ten#ion#8 'e*er$2in2 ch$nne' opportunitie# $nd incre$#ed focu# on rur$' 2ro4th.

Ne)tle In&!% Lt& 9NIL:B<

Ne#t'e Indi$ Ltd $ 9.1 per cent #u&#idi$r0 of Ne#t'e +A8 +4it,er'$nd8 i# $ 'e$din2 ($nuf$cturer of food product# in Indi$. It# product# inc'ude #o'u&'e coffee8 coffee &'end# $nd te$#8 conden#ed (i'>8 nood'e# 611 per cent ($r>et #h$re78 inf$nt (i'> po4der# 6. per cent ($r>et #h$re7 $nd cere$'# 610 per cent ($r>et #h$re7. Ne#t'e h$# $'#o e#t$&'i#hed it# pre#ence in choco'$te#8 confectionerie# $nd other proce##ed food#. +o'u&'e &e*er$2e# $nd (i'> product# $re the ($)or contri&utor# to Ne#t'e?# tot$' #$'e#. +o(e of Ne#t'e?# popu'$r &r$nd# $re Ne#c$fe8 :i'>($id8 :$22i $nd Cere'$c. The co(p$n0 h$# entered the chi''ed d$ir0 #e2(ent 4ith the '$unch of Ne#t'e /$hi $nd Ne#t'e Butter. Ne#t'e h$# $'#o ($de $ for$0 in non-c$r&on$ted co'd &e*er$2e# #e2(ent throu2h p'$ce(ent of Ne#te$ iced te$ $nd Ne#c$fe Fr$ppe *endin2 ($chine#. E9port# contri&ute to 23 per cent of it# turno*er $nd the co(p$n0 reported net #$'e# of <+= 440 (i''ion in 2003.

1!

Pe?)! Co; /<

%ep#iCo i# $ 4or'd 'e$der in con*enient food# $nd &e*er$2e#8 4ith re*enue# of $&out <+= 2. &i''ion. %ep#iCo &r$nd# $re $*$i'$&'e in ne$r'0 200 ($r>et# $cro## the 4or'd. The co(p$n0 h$# $n e9tre(e'0 po#iti*e out'oo> for Indi$. @Out#ide North A(eric$ t4o of our '$r2e#t $nd f$#te#t 2ro4in2 &u#ine##e# $re in Indi$ $nd Chin$8 4hich inc'ude (ore th$n $ third of the 4or'd?# popu'$tion@ 6%ep#ico?# $nnu$' report7. %ep#iCo entered Indi$ in 1919 $nd i# concentr$tin2 on three focu# $re$# - #oft drin> concentr$te8 #n$c> food# $nd *e2et$&'e $nd food proce##in2. %ep#iCo?# #ucce## i# the re#u't of #uperior product#8 hi2h #t$nd$rd# of perfor($nce $nd di#tincti*e co(petiti*e #tr$te2ie#.

Pro*ter 8 G%"=le H,'!ene %n& He%lth C%re L!"!te&

"ich$rd#on Aindu#t$n Li(ited 6"AL78 ($nuf$cturer of the Dic># r$n2e of product#8 4$# rechri#tened ?%rocter 3 ;$(&'e Indi$? in Octo&er 191 8 fo''o4in2 it# $ffi'i$tion to the ?%rocter 3 ;$(&'e Co(p$n0?8 <+A. %rocter 3 ;$(&'e A02iene $nd Ae$'th C$re Li(ited 6%;AACL7 $c-uired it# current n$(e in 19918 ref'ectin2 the t4o >e0 #e2(ent# of it# &u#ine##. %3;8 <+A h$# $ ! per cent #t$>e in %;AACL. The p$rent $'#o h$# $ 100 per cent #u&#idi$r08 %rocter 3 ;$(&'e Ao(e %roduct# 6%;A%7. The o*er$'' portfo'io of the co(p$n0 inc'ude# he$'thc$reH fe(inine-c$reH h$ir c$re $nd f$&ric c$re &u#ine##e#. %;AA oper$te# in )u#t t4o &u#ine## #e2(ent# I Dic># r$n2e of cou2h 3 co'd re(edie# $nd Bhi#per r$n2e of fe(inine A02iene. The deter2ent $nd #h$(poo &u#ine## h$# &een re'oc$ted 2'o&$''0 to Dietn$(. The co(p$n0 i(port# $nd ($r>et# (o#t of the product# fro( +outh E$#t A#i$n countrie# $nd Chin$8 4hi'e ($nuf$cturin28 ($r>etin2 $nd e9port of Dic># $nd #$nit$r0 n$p>in# h$# &een ret$ined in Indi$. The co(p$n0 reported #$'e# of <+= 91 (i''ion in 2002-03. The p$rent co(p$n0 h$# $nnounced it# p'$n to e9p'ore further e9tern$' co''$&or$tion# in Indi$ to (eet it# 2'o&$' inno*$tion $nd >no4'ed2e need#.

1.

PEST ANALYSIS OF FMCG SECTOR

11

Section 0.2 Section 0.1 Political

Economic

ho(e econo(0 #itu$tion ho(e econo(0 trend# o*er#e$# econo(ie# $nd trend# 2ener$' t$9$tion i##ue# t$9$tion productJ#er*ice# #pecific to

eco'o2ic$'Jen*iron(ent$' i##ue# current 'e2i#'$tion ho(e ($r>et future 'e2i#'$tion Europe$nJintern$tion$' 'e2i#'$tion re2u'$tor0 &odie# $nd proce##e# 2o*ern(ent po'icie# 2o*ern(ent ter( $nd ch$n2e tr$din2 po'icie# fundin28 2r$nt# $nd initi$ti*e# ho(e ($r>et 'o&&0in2Jpre##ure 2roup# intern$tion$' pre##ure 2roup#

#e$#on$'it0J4e$ther i##ue# ($r>et $nd tr$de c0c'e# #pecific indu#tr0 f$ctor# ($r>et trend# route# $nd di#tri&ution

cu#to(erJend-u#er dri*er# intere#t $nd e9ch$n2e r$te#

Section 0.3

Social

Section 0.4

Technolo ical

'ife#t0'e trend# de(o2r$phic# con#u(er $ttitude# $nd opinion# (edi$ *ie4# '$4 ch$n2e# $ffectin2 #oci$' f$ctor# &r$nd8 co(p$n08 techno'o20 i($2e con#u(er &u0in2 p$ttern# f$#hion $nd ro'e (ode'# ($)or e*ent# $nd inf'uence# &u0in2 $cce## $nd trend# ethnicJre'i2iou# f$ctor# $d*erti#in2 $nd pu&'icit0

co(petin2 techno'o20 de*e'op(ent re#e$rch fundin2 $##oci$tedJdependent techno'o2ie# rep'$ce(ent techno'o20J#o'ution# ($turit0 of techno'o20 ($nuf$cturin2 c$p$cit0 ($turit0 $nd

infor($tion $nd co((unic$tion# con#u(er (ech$ni#(#Jtechno'o20 techno'o20 'e2i#'$tion inno*$tion potenti$' techno'o20 $cce##8 'icencin2. &u0in2

19

DEMAND ANALYSIS
The Indi$n F:C; #ector i# the fourth '$r2e#t #ector in the econo(0 $nd the de($nd for F:C; product# i# #et to &oo( &0 $'(o#t !0 per cent &0 200. $nd (ore th$n 100 per cent &0 201 . "$pid ur&$ni,$tion8 incre$#ed 'iter$c0 $nd ri#in2 per c$pit$ inco(e8 h$*e $'' c$u#ed r$pid 2ro4th $nd ch$n2e in de($nd p$ttern#8 'e$din2 to $n e9p'o#ion of ne4 opportunitie#. Thi# 4i'' &e dri*en &0 the ri#e in #h$re of (idd'e c'$## 6defined $# the c'i(&er# $nd con#u(in2 c'$##7 fro( !. per cent in 2003 to 11 per cent in 201 . The &oo( in *$riou# con#u(er c$te2orie#8 further8 indic$te# $ '$tent de($nd for *$riou# product #e2(ent#. For e9$(p'e8 the upper end of *er0 rich $nd $ p$rt of the con#u(in2 c'$## indic$te $ #($'' &ut r$pid'0 2ro4in2 #e2(ent for &r$nded product#. The (idd'e #e2(ent8 on the other h$nd8 indic$te# $ '$r2e ($r>et for the ($## end product#. Indi$?# per c$pit$ di#po#$&'e inco(e8 current'0 $t <+= per $nnu(8 4i'' r$i#e to <+= 11 0 &0 201 - $nother F:C; de($nd dri*er. /e($nd An$'0#i# of *$riou# #e2(ent# of the F:C; indu#tr0 i# done &e'o4C The !er"onal care and deter ent" "e ment in Indi$ h$# 2ro4n $t $ CA;" of .-1 per cent in the p$#t 3 0e$r#. Bhi'e the pre(iu( product# of the indu#tr08 con#i#tin2 of co#(etic#8 #>in c$re product#8 fr$2r$nce#8 deodor$nt# $nd $ntiper#pir$nt#8 $nd #h$*in2 product#8 $re 2ro4in2 $t $&o*e 10 per cent due to 'o4 penetr$tion 'e*e'#8 the ($## ($r>et #e2(ent# 'i>e deter2ent#8 or$' c$re product#8 h$ir c$re product# $nd toi'et #o$p# h$*e $'re$d0 $chie*ed hi2h penetr$tion 'e*e'# $nd $re re2i#terin2 $ #'o4do4n in de($nd 2ro4th. The '$tter #e2(ent# $'#o co(pete 4ith the price- co(petiti*e unor2$ni#ed #e2(ent8 4hich $'#o re#trict# *$'ue 2ro4th. The oral care mar#et8 4hich 2re4 &0 10 per cent in the p$#t8 h$# #'o4ed do4n in recent 0e$r#8 due to hi2h penetr$tion 'e*e'#. /e($nd in thi# #e2(ent i# e9pected to 2ro4 $t $&out 1 per cent8 dri*en &0 rur$' de($nd. D$'ue 2ro4th i# 'i>e'0 to &e under pre##ure due to penetr$ti*e pricin2 for the rur$' ($r>et $nd #'o4 2ro4th in ur&$n de($nd. !

20

The hair care ind$"tr%8 4hich 4$# 2ro4in2 $t 1-9 percent8 i# $'#o e9pected to re2i#ter $ #'o4er 2ro4th of !-. per cent in future8 due to hi2h penetr$tion 'e*e'# $nd co(petition fro( un&r$nded h$ir oi'#. D$'ue 2ro4th in the #e2(ent i# e9pected to &e deri*ed '$r2e'0 throu2h the #$'e of *$'ue-$dded product#. The de($nd for toilet "oa!" 4i'' &e re#tricted to per cent o*er the (ediu( ter(8 $# current

penetr$tion 'e*e'# $re $'re$d0 hi2h. Ao4e*er8 #ince the 2ro4th 4i'' occur on $ hi2her &$#e8 the -u$ntu( of incre$#e 4i'' re($in #t$&'e. D$'ue 2ro4th in the indu#tr0 i# 'i>e'0 to &e dri*en &0 the (i2r$tion of con#u(er# fro( 'o4-end product# to upper #e2(ent#. The de($nd 2ro4th for deter2ent# h$# #'o4ed do4n in the p$#t fe4 0e$r# fro( hi#toric 'e*e'# of .-1 per cent8 due to hi2h penetr$tion r$te. Future de($nd 2ro4th i# e#ti($ted $t 4- per cent. Ao4e*er8 #ince the 2ro4th 4ou'd occur on $ hi2her &$#e8 the -u$ntu( of incre$#e 4ou'd re($in #t$&'e. D$'ue 2ro4th i# 'i>e'0 to &e dri*en &0 the (i2r$tion of con#u(er# fro( 'o4erend product# to the upper #e2(ent#. The Ch$ir($n of Aindu#t$n <ni'e*er8 $fter the re#u't# $nnounce(ent for F12J008 out'ined to the in*e#t(ent co((unit0 hi# p'$n# for the co(p$n0 $nd the p$th for K#u#t$in$&'e profit$&'e 2ro4th5. T4o thin2# c'e$r'0 e(er2ed fro( hi# t$'>C 1. A 2re$ter focu# on e9i#tin2 &u#ine##e# r$ther th$n ne4 &u#ine##e# 2. %rofit 2ro4th r$ther th$n top 'ine 2ro4th i# 'i>e'0 to dri*e future ($n$2e(ent $ction

21

A Ch%n'e !n Str%te',B<
The '$#t fe4 0e$r# of A<L5# 2ro4th 4$# dri*en inor2$nic$''0 throu2h $c-ui#ition# $nd *enture into ne4 &u#ine##e#. The (uch h$rped $&out :i''enniu( ;ro4th %'$n of the co(p$n0 4$# $'#o &$#ed on the #$(e p$th of 2ro4th throu2h e9p$n#ion. But in #h$rp contr$#t to hi# predece##or /$di#eth8 B$n2$5# 2ro4th p'$n $ppe$r# to &e &$#ed on KContr$ction5 r$ther th$n KE9p$n#ion. For once there 4$# no (ention of ne4 &r$nd '$unche#.

Thru)t on % e$ =r%n&) $!ll "e%n =etter 'ro$th %n& h!'her ?ro !t%=!l!t,B<
The 30 &r$nd# h$*e th$t &een identified co*er $'' >e0 c$te2orie# $nd $'' #e2(ent# in e$ch c$te2or0. The #e'ected &r$nd# $ccount for (ore th$n 2J3rd of tot$' F:C; &r$nd #$'e# of the co(p$n0. And 4h$t i# (ore i(port$nt i# th$t the profit contri&ution of the#e &r$nd# i# e*en 2re$ter. +o $ #cen$rio i# cre$ted 4here one 4i'' #ee $ 2re$ter re#ource $''oc$tion I &e it ($r>etin28 inno*$tion or peop'e #upport to4$rd# the#e 30 &r$nd#. The $d*erti#in2 $nd ($r>etin2 #upport #pre$d o*er fe4er &r$nd# i# 'i>e'0 to &e (ore efficient8 $nd 4i'' dri*e *o'u(e 2ro4th. And #tron2er 2ro4th in the (ore profit$&'e &r$nd portfo'io 4i'' $id ($r2in e9p$n#ion.

More e !*!ent ut!l!C%t!on o re)our*e)B<

Be#ide# r$tion$'i,$tion8 $ fe4 &r$nd# 4ou'd &e (i2r$ted8 i.e. the#e &r$nd# 4ou'd recei*e $ re2ion$' r$ther th$n $ n$tion$' #upport8 in it# #pecific re2ion of #tren2th. Bhere the &r$nd# c$n neither &e (i'>ed nor (i2r$ted8 the co(p$n0 i# $'#o open $t the option of di*e#tin2 the #$(e. +o8 Aindu#t$n <ni'e*er i# t$'>in2 of di*e#tin2 r$ther th$n $c-uirin2 &r$nd#.

22

Ne$ ?ro&u*t !n!t!%t!+e) ?ut on the =%*.=urnerB<

The ($n$2e(ent did not e*en di#cu##8 unti' $#>ed8 the #t$tu# on the nine 2ro4th en2ine# th$t h$d &een pre*iou#'0 identified $# 2ro4th dri*er#. A're$d0 the ($n$2e(ent h$# &rou2ht do4n to fi*e the *i$&'e option# fro( the nine identified e$r'ier. The#e $re in the $re$# of Confectioner08 Con#u(er Ae$'thc$re8 :iner$' B$ter8 /irect-To-Ao(e 6/TA7 di#tri&ution $nd $ uni-ue di#tri&ution (ode' for rur$' ($r>et#. But the ($n$2e(ent i# #ti'' te#tin2 $nd i# 2oin2 r$ther #'o4 on the ne4 initi$ti*e#. The fin$' deci#ion on the entr0 into the#e c$te2orie# 4i'' &e t$>en on'0 $fter ri2orou# te#tin2 of 4$ter# throu2hout the current 0e$r. Thi# e##enti$''0 (e$n# th$t one i# un'i>e'0 to #ee the co(p$n0 *enturin2 into the#e $re$# in the *er0 i((edi$te ter(. To #u( up B$n2$5# 4ord#8 the focu# 4i'' &e on @To do 4h$t 0ou >no4 &e#t@. And th$t pro&$&'0 i# 4h$t i# re-uired for the co(p$n0 in the current #cen$rio8 4here co(petition i# $t it# hee'# in e*er0 #e2(ent of oper$tion. "$ther th$n di*ert re#ource# to4$rd# ne4 $re$#8 it ($>e# #en#e to focu# on e9i#tin2 &u#ine##e#8 2ro4 the( $nd ($>e the( profit$&'e. And th$t i# 4h$t i# 2oin2 to &e A<L5# three pron2ed thru#t in the co(in2 0e$r. ;ro4 the F:C; &u#ine## - &0 e9p$ndin2 the ($r>et it#e'f8 &0 2ro4in2 the co(p$n05# #h$re in the ($r>et8 &0 2ener$tin2 de($nd thou2h inno*$tin2 ne4 ch$nne'# of con#u(ption8 &0 'e*er$2e on e9i#tin2 &r$nd e-uit0 &0 offerin2 #er*ice# to the cu#to(er. Bor> to4$rd# ($>in2 the food# &u#ine## profit$&'e - Au2e in*e#t(ent# h$*e &een ($de in de*e'opin2 ne4 food c$te2orie# $nd #ettin2 up $ di#tri&ution infr$#tructure in p'$ce for the food# &u#ine##. No4 th$t the &$#e for the &u#ine## h$# &een '$id8 the co(p$n0 e9pect# to dri*e the profit$&i'it0 of the#e &u#ine##e#. Be#ide# the tr$dition$' &e*er$2e# $nd oi'# $nd f$t# &u#ine##8 the ne4 c$te2orie# of #t$p'e food#8 cu'in$r0 product# $nd &$>er0 product# 6$c-uired throu2h :odern Food#7 $re 'i>e'0 to contri&ute to the 2ro4th. +tren2then the non-F:C; &u#ine## &0 $c-uirin2 techno'o20 #upport -The non-F:C; product c$te2orie# inc'ude che(ic$'#8 fr$2r$nce# 3 f'$*our#8 #peci$'t0 che(ic$'#8 ther(o(eter#8 etc The Co(p$n0 i# t$>in2 #tep# to #ecure 4or'd c'$## techno'o20 #upport in the#e $re$# for future 2ro4th. Thi# cou'd (e$n $ di*e#t(ent of the#e &u#ine##e# to $ #ep$r$te )oint *enture in the 'on2 ter(.

23

ANALYSIS 6F THE STRATEGY/

Bi'' thi# #tr$te20 4or>L The out'ined #tr$te20 i# $ #i2nific$nt de*i$tion fro( the p$th fo''o4ed &0 the co(p$n0 in the p$#t. "$ther th$n 2ro4 in &re$dth $t $ f$#t p$ce8 the ne4 #tr$te20 $ppe$r# to &e focu#in2 on con#o'id$tion of the $'re$d0 e9p$nded &u#ine##e#8 &efore (o*in2 on. And thi# $ppe$r# $ppropri$te 2i*en the current econo(ic $nd co(petiti*e en*iron(ent. The o*er$'' ($r>et de($nd 2ro4th i# 'i>e'0 to &e con#tr$ined &0 $d*er#e econo(ic f$ctor# #uch $# poor $2ricu'tur$' $nd indu#tri$' 2ro4th. On the other h$nd8 A<L f$ce# #tiff co(petition fro( &oth :NC5# $t the pre(iu( end $nd the 'oc$' 'o4 co#t producer# $t the popu'$r end. The propo#ed (e$#ure# $re 'i>e'0 to 'e$d to the fo''o4in2 2$in#C 1. A 2re$ter ($r>etin2 $nd ($n$2e(ent focu# on r$tion$'i,ed product portfo'io 4ou'd 'e$d to &etter 2ro4th r$te# for tho#e &r$nd# 2. The contri&ution to profit of the 30 &r$nd# &ein2 hi2her8 o*er$'' profit$&i'it0 4ou'd ri#e8 $# the#e &r$nd# 2ro4 $t $ f$#ter p$ce. 3. Bhi'e the o*er$'' e9penditure on &r$ndin2 $nd #$'e# pro(otion# &e 'o4er $# the nu(&er of &r$nd# #upported dec'ineH $'#o (ore efficient &r$nd# 4ou'd recei*e 2re$ter #upport 4. Co#t cuttin2 initi$ti*e# e9tended $cro## the #upp'0 ch$in $# 4e'' $# $ con#ciou# effort to4$rd# 'o4erin2 fi9ed o*erhe$d# 4ou'd $id ($r2in e9p$n#ion. . A #'o4do4n in in*e#t(ent# in ne4 &u#ine##e#8 $nd i(pro*ed profit$&i'it0 in e9i#tin2 &u#ine##e# 4ou'd (e$n th$t "OCE 2ro4th 4ou'd &e f$#ter. Be fee' th$t 2i*en the econo(ic $nd co(petiti*e en*iron(ent. A<L #t$nd# $ (uch &etter ch$nce of i(pro*in2 it# oper$tin2 $nd fin$nci$' perfor($nce 4ith the out'ined #tr$te20. At the current price of "#21!8 the #toc> tr$de# $t 3!9 F12J00 e$rnin2#. A 2 M 2ro4th in profit$&i'it0 $ppe$r# $chie*$&'e $# the portfo'io r$tion$'i,$tion 4i'' dri*e ($r2in e9p$n#ion. Lo4er re#tructurin2 co#t# 4ou'd $'#o $id hi2her net profit 2ro4th. On $n e#ti($ted F12J01 E%+ of "#..48 4e #et $ one-0e$r price t$r2et of "#29!8 4hich 4ou'd 0ie'd $ 3.M return.

24

DEMAND PRO1ECTION
F$#t :o*in2 Con#u(er ;ood# 6F:C;7 #ector 4i'' 4itne## (ore th$n 0 per cent 2ro4th in rur$' $nd #e(i-ur&$n Indi$ &0 20108 $ccordin2 to $n $n$'0#i# c$rried out &0 the A##oci$ted Ch$(&er# of Co((erce $nd Indu#tr0 of Indi$. In tot$'it08 it i# pro)ected to 2ro4 $t $ CA;" 6co(pounded $nnu$' 2ro4th r$te7 of 10 per cent $nd incre$#e it# ($r>et #i,e to "# 1008000 crore fro( the pre#ent 'e*e' of "# 418000 crore. The 2ro4in2 pench$nt of rur$' $nd #e(i-ur&$n fo'># for F:C; product# 4i'' &e ($in'0 re#pon#i&'e for thi# de*e'op(ent8 $# ($nuf$cturer# 4i'' h$*e to deepen their concentr$tion for hi2her #$'e# *o'u(e#. In the rur$' $nd #e(i-ur&$n $re$#8 F:C; ($r>et penetr$tion i# current'0 'e## th$n 1 per cent in 2ener$' $# $2$in#t it# tot$' 2ro4th r$te of $&out !.2 per cent. The $n$'0#i# i# &$#ed on the feed&$c> o&t$ined fro( *$riou# di#trict indu#tr0 centre# $'' o*er the countr0 on the future de($nd-#upp'0 #itu$tion of F:C; product#. Indi$n rur$' ($r>et 4ith it# *$#t #i,e $nd de($nd &$#e offered $ hu2e opportunit0 th$t F:C; co(p$nie# c$nnot $fford to i2nore. Bith 121 (i''ion hou#eho'd#8 the rur$' popu'$tion i# ne$r'0 three ti(e# the ur&$n. Thou2h the rur$' $nd #e(i-ur&$n de($nd of F:C; product# 4i'' 2ro48 it 4i'' put $ #e*ere pre##ure on the ($r2in# of ($nuf$cturer# of F:C; product# due to cut-thro$t co(petition8 find# the $n$'0#i#. Co(p$nie# in the #ector to &enefit 4i'' inc'ude >no4n n$(e# #uch $# Nir($8 A<L8 /$&ur8 ITC8 ;odre)8 Brit$nni$8 Coc$-Co'$8 %ep#i8 $(on2 other#. "ur$' ($r>et ($0 &e $''urin2 &ut it i# not 4ithout pro&'e(# #uch $# 'o4 per c$pit$ di#po#$&'e inco(e# $nd '$r2e nu(&er of d$i'0 4$2e e$rner#. +o(e of the other pro&'e(# $##oci$ted 4ith rur$' ($r>et# $re $cute dependence on the *$2$rie# of the (on#oon8 #e$#on$' con#u(ption 'in>ed to h$r*e#t#8 fe#ti*$'# $nd #peci$' occ$#ion#8 poor ro$d# $nd po4er pro&'e(#. The other difficu't0 th$t F:C; co(p$nie# $re 'i>e'0 to f$ce i# th$t of 'o2i#tic#. Indi$?# !2.8000 *i''$2e# $re #pre$d o*er 3.2 (i''ion #- >(. /e'i*erin2 product# to the . 0 (i''ion Indi$n# 'i*in2 in rur$' $re$# 4i'' &e $ tou2h t$#>. The net profit of A<L for the fu'' 0e$r fe'' to "# 1819..3! crore 6"# 11.9. &i''ion7 fro( "#1..1..9 6"# 1...1 &i''ion7 '$#t 0e$r.

O(1ECTI0ES OF THE STUDY

2; To e+%lu%te *urrent *on)u"er )%le) ?ro"ot!on )*he"e) !n to!let )o%? "%r.et; 3; To 'et %n !n)!'ht !nto ret%!ler)D +!e$) re'%r&!n' the )*he"e) =e!n' o ere& !n to!let )o%? *%te'or, %n& *on)u"er ?er*e?t!on); 4; To )tu&, *on)u"er ?er*e?t!on) re'%r&!n' +%r!ou) ?ro"ot!on )*he"e) !n th!) *%te'or, %n& re)?on)e) to$%r& the";

2!

CHAPTER E 3
COMPANY PROFILE

2.

COMPANY PROFILE Intro&u*t!on/<

Aindu#t$n <ni'e*er Li(ited 6A<L78 $ 1M-o4ned #u&#idi$r0 of An2'o-/utch 2i$nt <ni'e*er8 h$# &een pr0in2 it# 4$0 into Indi$ #ince 1111. Indi$?# '$r2e#t con#u(er 2ood# co(p$n08 AAL ($r>et# product# #uch $# &e*er$2e#8 food8 $nd ho(e $nd per#on$' c$re 2ood#. It# &r$nd# inc'ude E4$'it0 B$''?# ice cre$(8 Life&uo0 #o$p8 Lipton te$8 %ep#odent toothp$#te8 $nd +urf '$undr0 deter2ent. A<L ($r>et# $tt$ 6$ t0pe of (e$'78 ($i,e8 rice8 #$'t8 $nd #peci$'t0 che(ic$'#8 $nd it# e9port di*i#ion #hip# c$#tor oi' $nd fi#h. The co(p$n0 $'#o #e''# &ott'ed 4$ter $nd o*er-the-counter he$'thc$re product#. Aindu#t$n <ni'e*er Li(ited 6A<L7 i# Indi$?# '$r2e#t f$#t (o*in2 con#u(er 2ood# co(p$n08 4ith 'e$der#hip in Ao(e 3 %er#on$' C$re %roduct# $nd Food# 3 Be*er$2e#. A<L?# &r$nd#8 #pre$d $cro## 20 di#tinct con#u(er c$te2orie#8 touch the 'i*e# of t4o out of three Indi$n#. The0 endo4 the co(p$n0 4ith $ #c$'e of co(&ined *o'u(e# of $&out 4 (i''ion tonne# $nd #$'e# of "#.108 000 crore#. The *i#ion th$t in#pire# A<L?# 328400 e(p'o0ee# 6408000 inc'udin2 ;roup Co(p$nie#78 inc'udin2 $&out 1842 ($n$2er#8 i# to N(eet e*er0d$0 need# of peop'e e*er04here - to $nticip$te the $#pir$tion# of our con#u(er# $nd cu#to(er# $nd to re#pond cre$ti*e'0 $nd co(petiti*e'0 4ith &r$nded product# $nd #er*ice# 4hich r$i#e the -u$'it0 of 'ife.O Thi# o&)ecti*e i# $chie*ed throu2h the &r$nd# th$t the co(p$n0 ($r>et#.

21

(u)!ne)) N%ture/<
A<L i# Indi$?# '$r2e#t ($r>eter of +o$p#8 /eter2ent# $nd Ao(e C$re product#. It h$# the countr05# '$r2e#t %er#on$' %roduct# &u#ine##8 'e$din2 in +h$(poo#8 +>in C$re %roduct#8 Co'our Co#(etic#8 $nd /eodor$nt#. A<L i# $'#o the ($r>et 'e$der in Te$8 %roce##ed Coffee8 &r$nded Bhe$t F'our8 To($to %roduct#8 Ice cre$(8 +oup#8 G$(# $nd +-u$#he#. A<L i# $'#o one of the countr0?# &i22e#t e9porter# $nd h$# &een reco2ni,ed $# $ ;o'den +uper +t$r Tr$din2 Aou#e &0 the ;o*ern(ent of Indi$H it i# $ net forei2n e9ch$n2e e$rner. A<L i# Indi$?# '$r2e#t e9porter of &r$nded f$#t (o*in2 con#u(er 2ood#. The co(p$n0?# E9port# portfo'io inc'ude# A<L?# &r$nd# of +o$p# $nd /eter2ent#8 %er#on$' %roduct#8 Ao(e C$re %roduct#8 Te$ $nd Coffe.

M%r.et le%&!n' =r%n&)/<

A<L5# &r$nd# h$*e &eco(e hou#eho'd n$(e#. The co(p$n05# #tr$te20 i# to concentr$te it# re#ource# on 30 n$tion$' po4er &r$nd#8 $nd 10 other &r$nd# 4hich $re #tron2 in cert$in re2ion#. The top fi*e &r$nd# to2ether $ccount for #$'e# of o*er "#.3000 crore#. +o(e of the &i2 &r$nd# in +o$p# $nd /eter2ent# $re L! e=uo,- LuA- L!r!l- H%"%"- (reeCeDo+e- 6$'' #o$p#78 +urf E9ce'8 +urf8 "in8 Bhee' 6the nu(&er one deter2ent &r$nd in Indi$8 $nd A<L?# '$r2e#t78 018 +un'i2ht 6$'' deter2ent#7. A<L $'#o ($r>et# the Di( $nd /o(e9 r$n2e of Ao(e C$re %roduct#.

29

In the %er#on$' %roduct# &u#ine##8 A<L?# A$ir C$re fr$nchi#e# $re C'inic8 +un#i'> $nd Lu9 #h$(poo#H the co(p$n0 ($r>et# Nih$r oi'. In Or$' C$re8 the portfo'io co(pri#e# C'o#e-up $nd %ep#odent toothp$#te# $nd tooth&ru#he#. In +>in C$re8 A<L ($r>et# F$ir 3 Lo*e'0 +>in Cre$( $nd Lotion8 the '$r2e#t #e''in2 +>in C$re %roduct in Indi$H $ &r$nd de*e'oped in Indi$8 it i# no4 e9ported to o*er 30 countrie#. It h$# &een e9tended $# $n A0ur*edic cre$(8 $n under-e0e cre$(8 $ #o$p $nd $ t$'c8 in 'ine 4ith the #tr$te20 to t$>e &r$nd# $cro## re'e*$nt c$te2orie#. The other ($)or +>in C$re fr$nchi#e# $re %ond5#8 D$#e'ine8 L$>(e $nd %e$r#. In Co'our Co#(etic#8 A<L ($r>et# the L$>(e $nd E''e-11 r$n2e#. In /eodor$nt#8 the >e0 &r$nd# $re "e9on$8 A9e8 /eni( $nd %ond?#8 4hi'e the T$'c &r$nd# $re %ond?#8 Liri'8 F$ir 3 Lo*e'08 D$#e'ine $nd Life&uo0. A9e $nd /eni( $re A<L5# fr$nchi#e# for :en5# toi'etrie#.

30

SWOT ANALYSIS OF HUL

STRENGTHS/< +tron2 &r$nd portfo'io. Con#u(er under#t$ndin2. "3/ $&i'it0. /i#tri&ution re$che#. Ai2h -u$'it0 ($npo4er.

31

WEAKNESSES/ Incre$#ed con#u(er #pend# on educ$tion8 con#u(er dur$&'e8 entert$in(ent8 tr$*e'8 etc re#u'tin2 in 'o4er #h$re of 4$''et for F:C;. Li(ited #ucce## in ch$n2in2 the e$tin2 h$&it# of peop'e. Co(p'e9 #upp'0 ch$in confi2ur$tion $nd un4ie'd0 nu(&er of #toc> >eepin2 unit# 6+E<#7 4ith di#per#ed ($nuf$cturin2 'oc$tion#. %rice co#t# in the p'$nt$tion po#itionin2 in #o(e c$te2orie# th$t $''o4# for 'o4 price co(petition $nd hi2h #oci$' &u#ine##.

32

OPPORTUNITIES/< :$r>et $nd &r$nd 2ro4th throu2h incre$#ed penetr$tion e#peci$''0 in rur$' $re$#.

Br$nd 2ro4th throu2h incre$#ed con#u(ption depth $nd fre-uenc0 of u#$2e $cro## $'' c$te2orie#.

<p2r$din2 con#u(er# throu2h inno*$tion to ne4 'e*e'# of -u$'it0 $nd perfor($nce.

E(er2in2 (odern tr$de to &e effecti*e'0 u#ed for introduction of (ore up#c$'e per#on$' c$re product#.

;ro4in2 con#u(ption in out of ho(e c$te2orie#.

%o#itionin2 A<L $# $ #ourcin2 hu& for <ni'e*er co(p$nie# e'#e4here $nd 'e*er$2in2 the '$te#t IT techno'o2ie#.

33

THREATS/ Lo4-priced co(petition no4 &ein2 pre#ent in $'' c$te2orie#.

;re0 i(port#.

Ch$n2e# in fi#c$' &enefit# $nd unf$*or$&'e price# in oi'#8 te$ co((odit08 etc.

34

TOILET SOAP INDUSTRY IN INDIA Im!licati&e St$d%:Toi'et #o$p indu#tr0 i# one of the o'de#t F$#t :o*in2 Con#u(er ;ood# 6F:C;7 indu#trie# in Indi$. It i# $(on2 the hi2he#t penetr$ted c$te2or0 4ithin F:C; #ector re$chin2 $n e#ti($ted 9 M ur&$n $nd 1.M of the rur$' hou#eho'd#. In *$'ue ter(# the indu#tr0 i# 4orth "#.4 000 (i''ion $nd in *o'u(e ter(# it i# 4orth . 3 (i''ion 6in 2001 $# reported &0 Oper$tion# "e#e$rch ;roup 6O";7 +ur*e07. The ($in ch$r$cteri#tic of the indu#tr0 4$# #e*ere co(petition $nd hi2h 'e*e' of &r$nd pro'ifer$tion. The indu#tr0 4itne##ed .M dec'ine in *$'ue in 0e$r 2001. There 4ere 4 'e$din2 n$tion$' &r$nd#. None of the n$tion$' &r$nd# h$d (ore th$n M ($r>et #h$re $nd ($n0 (ore re2ion$' $nd unor2$ni,ed #ectorJ'oc$' &r$nd#. Aindu#t$n <ni'e*er 4$# the ($r>et 'e$der 4ith $&out 30 6nu(&er7 of toi'et #o$p &r$nd# 4ith $ tot$' ($r>et #h$re of !.M in 2000-2009 in or2$ni,ed #ector $# #een fro( T$&'e &e'o48 4hich 2i*e# the 'e$d p'$0er# $nd their re#pecti*e ($r>et #h$re

The 'e$din2 &r$nd# in the ($r>et $re /o*e8 %e$r#8 Lu98 /etto'8 Liri'8 "e9on$8 Life&ou08 Nir($8 %$'(o'i*e $nd A$($(. The indu#tr0 h$d 4itne##ed ($n0 inno*$ti*e #$'e# pro(otion $cti*itie# in the recent p$#t. Nu(erou# f$ctor# 4ere re#pon#i&'e for #uch $ pheno(enon. The re$#on# $reC The ($r>et &ein2 #'u22i#h8 co(p$nie# 4ere tr0in2 to incre$#e ($r>et #h$re in #t$2n$nt to dec'inin2 6*o'u(e ter(#7 ($r>et in order to ret$in con#u(er#8 to encour$2e #4itchin28 to induce tri$'# $nd 'i-uid$te e9ce##i*e in*entorie#. Bith the pre#ence of #o ($n0 &r$nd# the co(petition h$d incre$#ed #e*er$''0 'e$din2 to fi2ht for ($r>et #h$re $nd #he'f #p$ce. Aence8 #$'e# pro(otion $cti*itie# in toi'et #o$p indu#tr0 po#ed $ *er0 intere#tin2 #tud0 $nd con#u(er $nd ret$i'er perception# thereof.

The &r$nd# in popu'$r #e2(ent# 4ere found to &e fre-uent'0 pro(oted $# there 4$# inten#i*e price co(petition in thi# #e2(ent. The &r$nd# cou'd $'#o &e c'$##ified &$#ed on (edicin$' &enefit#8 co#(etic &enefit#8 perfu(e#8 n$tur$'Jher&$' propertie#. After po#tin2 $ (ode#t #in2'e di2it 2ro4th in 199.-20008 fi2ure# for the fir#t #e*en (onth# of thi# 0e$r #u22e#t th$t the ($r>et for toi'et #o$p# h$# $ctu$''0 #hrun>.

3!

E#ti($te# $&out the e9tent of the dec'ine of ($r>et #i,e *$r0. Aindu#t$n <ni'e*er8 4hich #tr$dd'e# the c$te2or0 4ith $ 9.9 per cent ($r>et #h$re &0 *$'ue8 #$0# the ($r>et #hr$n> &0 4.4 per cent in *$'ue ter(# in the fir#t h$'f of 2001. The Indi$n +o$p# $nd Toi'etrie# :$nuf$cturer# A##oci$tion8 put# the dec'ine $t 1 per cent. Other indu#tr0 #ource# #u22e#t th$t the e9tent of Pde-2ro4th? in the fir#t ei2ht (onth# of 2001 cou'd &e $# hi2h $# . per cent. Thi# i# de#pite the f$ct th$t thi# u#u$''0 #'eep0 c$te2or0 h$# #een $ #p$te of ne4 p'$0er# de&ut ne4 offerin2# in recent ti(e#. O*er the p$#t coup'e of 0e$r#8 Nir($ h$# '$unched $ #'e4 of 'o4-priced #o$p# under the &$nner of Ni($ $nd Nir($ Be$ut0. ;odre) Con#u(er8 $ 'on2#t$ndin2 p'$0er8 h$# re'$unched o'd &r$nd# #uch $# Cintho'8 $p$rt fro( ne4 one# #uch $# F$ir;'o48 A''c$re8 $nd Ni>h$r. But if the #hrin>in2 ($r>et #i,e #u22e#t# th$t Indi$n con#u(er# h$*e $ctu$''0 &een cuttin2 &$c> on their u#e of toi'et #o$p#8 thi# i# not re$''0 the c$#e. In *o'u(e ter(#8 the ($r>et for toi'et #o$p# h$# continued to #ho4 $ 2ro4th of ! per cent in the fir#t ei2ht (onth# of 2001. The ($)or p'$0er# h$*e cert$in'0 ($n$2ed to #e'' (ore toi'et #o$p# &0 *o'u(e. But price co(petition in the #e2(ent $nd $ #'e4 of pro(otion$' c$(p$i2n# h$# reduced the effecti*e re$'i#$tion# per unit #o'd. Thi# h$# pro&$&'0 neutr$'i#ed the 2$in# fro( *o'u(e e9p$n#ion. Theorie# $&out the re$#on# for the #hrin>in2 the ($r>et #i,e *$rie#.

3.

Lo$<?r!*e& =r%n&)/<
Indu#tr0 p'$0er# co((on'0 $ttri&ute the Pde-2ro4th? in the #o$p ($r>et to do4ntr$din2. Toi'et #o$p# $re $(on2 the hi2he#t penetr$ted product# 4ithin the F:C; ($r>et8 re$chin2 $n e#ti($ted 9 per cent of the ur&$n $nd 1. per cent of the rur$' hou#eho'd#. The f$ir'0 hi2h contri&ution fro( the rur$' ($r>et ($>e# thi# c$te2or0 #en#iti*e to the fortune# of the $2ricu'tur$' econo(0. The pro'on2ed drou2ht in the North $nd Be#t of the countr0 6unti' 20007 $nd the #h$rp f$'' in f$r( di#po#$&'e inco(e# 6&rou2ht on &0 f$''in2 f$r( product price#7 h$# pro&$&'0 per#u$ded 'o4-inco(e hou#eho'd# to do4ntr$de8 th$t i#8 #4itch fro( hi2h- to 'o4-priced &r$nd#. A<L too $ppe$r# to endor#e the pheno(enon of do4ntr$din2. PPThere h$# &een $n inter#ector$' #hift in the #o$p ($r>et8 4ith con#u(er# do4ntr$din2 fro( pre(iu( $nd popu'$r to di#count #o$p#??8 e9p'$in# the co(p$n0?# #po>e#per#on. Ao4e*er8 :r Ao#hed$r E. %re##8 ;odre) Con#u(er C$re8 &e2# to differ. PPBe thin> con#u(er# h$*e $'re$d0 pre-co((itted their inco(e# for in#t$'(ent# on dur$&'e#. The #u&#titution of #o$p 4ith #h$(poo# for h$ir 4$#h h$# $'#o i(p$cted 2ro4th??8 he #$id.

31

(etter #u%l!t,/<
The cro4ded ($r>et p'$ce h$# $'#o &rou2ht $ fe4 &enefit# to the con#u(er $# ($r>eter# of #o$p h$*e tried to 4oo con#u(er# throu2h up2r$ded offerin2# $nd &etter -u$'it0 #o$p#. Aided &0 'o4 input price#8 the ($r>eter# of toi'et #o$p# h$*e incre$#ed the TF: 6tot$' f$tt0 ($tter7 content in their &r$nd#8 to offer &etter -u$'it0 #o$p# $t $ 'o4er price. Indu#tr0 4$tcher# #$0 th$t the TF: content on #o(e &r$nd# h$# (o*ed up fro( the 0-!0 per cent e$r'ier to o*er .0 per cent of '$te. Therefore8 per unit re$'i#$tion# on #o$p# h$*e dec'ined8 the ($r>eter# of #o$p# h$*e $ctu$''0 #$crificed $ p$rt of their ($r2in# on hi>in2 the TF: content. Tou2h ti(e# $he$d. Bith co(petiti*e pre##ure# on the ri#e $nd $ '$r2er nu(&er of &r$nd# )o#t'in2 for con#u(er $ttention in $ #'u22i#h ($r>et8 the #o$p ($r>et i# 'i>e'0 to re($in $ difficu't one for (o#t p'$0er#. +($''er p'$0er# #uch $# ;odre) Con#u(er $nd Aen>e' +%IC h$*e &een in $ po#ition to report ro&u#t #$'e# 2ro4th in the c$te2or0 o*er the p$#t 0e$r de#pite the &rui#in2 co(petition. Ao4e*er8 thi# i# p$rt'0 due to $ re'$ti*e'0 #($'' &$#e of co(p$ri#on. <n'e## the ($r>et e9p$nd#8 the frenetic pro(otion$' $cti*it0 ($0 #oon te'' on the 2ro4th r$te of the p'$0er#. And 4hen it co(e# to #u#t$inin2 $ hi2h deci&e' pro(otion$' c$(p$i2n8 A<L?# #i,e cert$in'0 2i*e# it the 4here4ith$' to do it.

39

Rur%l re+!+%l < A $!l& *%r&/<

It $ppe$r# th$t $ 2enuine &oo#t to the ($r>et #i,e for toi'et #o$p# 4i'' #ti'' h$*e to co(e fro( $ re*i*$' in rur$' de($nd. E*idence fro( the p$#t doe# $ppe$r to #u22e#t th$t $ #h$rp ri#e in rur$' inco(e# 4ou'd h$*e $ c$#c$din2 effect on F:C; de($nd. The pic>-up in *o'u(e 2ro4th in the #o$p ($r>et in 19998 $fter $ 0e$r of #'u22i#h 2ro4th in 19918 de(on#tr$ted th$t $ reco*er0 in $2ricu'tur$' output doe# h$*e $n indirect i(p$ct on #$'e# *o'u(e# of F:C; product#. Thi# 0e$r8 report# of $ 2ood (on#oon in the northern $nd 4e#tern p$rt# of the countr0 h$*e #p$r>ed off #pecu'$tion $&out $ re*i*$' in F:C; 2ro4th r$te#. The f$ct the#e t4o re2ion# $ccount for per cent of the de($nd for F:C; product# #tren2then# thi# $r2u(ent. Ao4e*er8 it $ppe$r# to &e $ &it e$r'0 in the d$0 to c$'' it $ re*i*$'. For one8 4hi'e the northern $nd 4e#tern re2ion# h$*e recei*ed #$ti#f$ctor0 r$in#8 #outhern Indi$ h$# &een the *icti( of $ *er0 err$tic (on#oon. +econd8 2i*en th$t the 2ood (on#oon in the current 0e$r #ucceed# t4o or three con#ecuti*e 0e$r# of drou2ht in #o(e re2ion#8 there cou'd &e $ #u&#t$nti$' ti(e '$2 &efore hi2her rur$' inco(e# tr$n#'$te# into &etter F:C; de($nd. Third8 the >e0 cri#i# in $2ricu'ture o*er the p$#t 0e$r h$# &een th$t f$r( product price# h$*e dropped #h$rp'0 in re#pon#e to $ &ui'd up of #urp'u# food2r$in #toc>#. Therefore8 e*en if $ 2ood (on#oon tr$n#'$te# into $ hi2her $2ricu'tur$' output8 there i# the -ue#tion of 4hether thi# 4i'' $ctu$''0 e9p$nd or #hrin> f$r( inco(e#. The#e f$ctor# #u22e#t th$t it ($0 &e pre($ture to t$>e in*e#t(ent e9po#ure# in co(p$nie# focu##ed on toi'et #o$p# in the hope of $ re*i*$'. It ($0 &e &etter to 4$it for concrete #i2n# of $ pic>-up in rur$' de($nd8 4hich i# cert$in'0 #o(e 4$0 off.

40

THE FOUR COMPONENTS OF THE MARKETING MIF

In toi'et #o$p ($r>et A<L h$# !3M ($r>et #h$re. Thi# i# the product #e2(ent 4here A<L h$# #een 2ro4th o*er '$#t 0e$r &ut the 2ro4th i# not $# hi2h $# there i# e9p$n#ion in the ($r>et for toi'et #o$p#. The c$#h co4# for A<L inc'ude Life &o08 Lu98 Liri'8 "e9on$ $nd Bree,e. The co(p$n0?# pre(iu( #o$p inc'ude# /o*e8 %e$r#. The co(p$n0 h$# co(e up 4ith $ ne4 product offerin2 i.e. F$ir 3 Lo*e'0 #o$p. The #tr$te20 for 200!-0. 4ou'd &e to incre$#e the ($r>et #h$re fro( e9i#tin2 !3M to .0M. The #tr$te2ic ch$n2e# t$>in2 4 %?# into con#ider$tion 4ou'd &eC

Pro&u*t/< A<L 4ou'd continue 4ith the e9i#tin2 portfo'io of the product# $nd 4ou'd concentr$te on co(in2 4ith ne4 fr$2r$nce# on different #o$p# th$n '$unchin2 ne4 #o$p#. It 4ou'd po#ition /o*e $nd Lu9 Intern$tion$' #o$p *er0 ur&$n rich 4o(en 4ho $re e9tr$ con#ciou# for their co(p'e9ion. %e$r#8 Lu9 Intern$tion$' 4ou'd &e po#itioned for the ur&$n $nd rur$' rich. For the con#u(in2 ur&$n c'$##8 Liri'8 "e9on$8 %e$r# $nd Life&ou0 Intern$tion$' 4ou'd &e po#itioned. It 4ou'd $'#o co(e up 4ith 402( p$c>$2in2 for different product#. It 4i'' $'#o &e thin>in2 of e9tendin2 popu'$r &r$nd# of co#(etic# in the toi'et #o$p #e2(ent &0 th$t deci#ion 4ou'd &e &$#ed on the popu'$rit0 $nd $ccept$nce of th$t p$rticu'$r &r$nd 6Br$nd E9ten#ion7.

Pr!*e/< A<L 4ou'd &e tr0in2 to cu#to(i,e the p$c>$2in2 of *$riou# product# on the &$#i# of price point#. E.2. it 4i'' co(e up 4ith the pricin2 of "# 8 "# 10 $nd "# 1 for different product#. It 4ou'd tr0 to e9peri(ent it 4ith the product# po#itioned for con#u(in2 c'$##.

41

Pro"ot!on/< For pro(otion8 $p$rt fro( continuin2 the e9i#tin2 #tr$te20 of concentr$tin2 on T.D. ch$nne'#8 A<L 4ou'd tr0 to focu# on the pro(otion$' c$(p$i2n in rur$' #ector. It 4ou'd $'#o concentr$te on pro(otin2 throu2h r$dio $nd #pon#orin2 the pro2r$(# e.2. KEri#hi /$r#h$n? $nd KA$p >$ +4$#th$0$? pro2r$(# th$t h$*e 2re$ter nu(&er of $udience. The $d*erti#in2 for the( 4ou'd h$*e $ p$#tor$' $nd cu'tur$' 'oo>#. It 4ou'd ch$'> out the rur$' pro(otion #che(e for tho#e $re$# 4here the c$&'e T.D. h$# not re$ched. <nder thi# #che(e It 4ou'd tr0 to inc'ude K;r$( %$nch$0$t?8 K+4$#th$0$ %$ri#h$d? $nd other 'oc$' &odie# &0 offerin2 >no4'ed2e for u#in2 2ood $nd $nti-2er( product#.

Pl%*e/< A# the ($r>etin2 ch$nne'# of the co(p$n0 $re $'re$d0 e#t$&'i#hed A<L 4ou'd tr0 to incre$#e the penetr$tion in the rur$' #ector to the e9tre(e re(ote $re$# 4hich $re not touched ti'' no4. It 4ou'd tr0 to reduce the de'i*er0 ti(e of the product# &0 choo#in2 $nd incre$#in2 the #tr$te2ic 'oc$tion# of 4$rehou#e#. It 4ou'd $'#o tr$c> the di#tri&ution p$th of the 4ho'e#$'er# in #($'' citie# throu2h ($r>etin2 te$( $nd 4ou'd e#t$&'i#h $ p'$tfor( or te$( $t $ ,on$' 'e*e' for $'' the 4ho'e#$'er# $nd 4ou'd tr0 to t$>e their feed&$c> on the ($r>et de*e'op(ent#. The#e >ind# of con2re2$tion# cou'd $'#o incre$#e the &r$nd 'o0$'t0 in the 4ho'e#$'er# $nd the0 4ou'd &e (oti*$ted to pu#h A<L product#.

42

The Re%l Ch%llen'e/ Brid in the a! 'et(een Phili! )otler and *o$ntr%"ide India::$r>etin2 in de*e'opin2 countrie# 'i>e Indi$ h$*e often &een &orro4ed fro( the 4e#tern 4or'd. Concept# 'i>e Br$nd identit08 Cu#to(er re'$tion#hip ($n$2e(ent8 4 %5# of the ($r>etin2 (i98 Con#u(er &eh$*ior proce##H +e2(ent$tion8 t$r2etin2 $nd po#itionin2 etc. h$*e often &een 'ifted #tr$i2ht fro( the ($r>etin2 inte''i2ent#i$ $&ro$d $nd $dopted in Indi$n condition#8 often 4ith (ini($' #ucce##. Re%)on l!e) not !n the %ult o )u*h *on*e?t)- =ut the!r !nte'r%t!on $!th the In&!%n etho) %n& *ulture; The rur$' Indi$ offer# $ tre(endou# ($r>et potenti$'. Ne$r'0 t4o-third# of $'' (idd'e inco(e hou#eho'd# in the countr0 $re in rur$' Indi$ $nd repre#ent# h$'f of Indi$5# &u0in2 potenti$'. /e#pite8 the #tron2 potenti$' the rur$' ($r>et# $re &0 $nd '$r2e 'e## e9p'oited.

+,L Brid in the -a! '% E.tendin 4P/" 0f the 1ar#etin 1i. to the 2 P/" 3nd 2 E/" A<L h$# (odified 4 %5# of the ($r>etin2 (i9 &0 inc'udin2 $n $ddition$' % i.e. %$c>$2in2. Further to en#ure the #u#t$in$&i'it0 of the ($r>etin2 (i9 t4o E5# i.e. Educ$tion $nd E(po4er(ent h$*e to &e $t the core $# the0 he'p in 2ener$tin2 4ide#pre$d p$rticip$tion fro( the rur$' c'ient &0 enh$ncin2 their #t$nd$rd of 'i*in2.

43

PACKAGING/ The re$#on for puttin2 p$c>$2in2 out of the product $# $ #peci$' focu# $re$ i# th$t due to 'o4 'iter$c0 'e*e'# the i(port$nce of #0(&o'# $nd p$c>$2in2 &eco(e (ore i(port$nt in h$*in2 $ hi2h &r$nd rec$''.Thu#8 $fter the 4 p of ($r>etin28 it i# th % 4hich i# p$c>$2in2 2oin2 to p'$0 $ >e0 ro'e in rur$' ($r>et#. A'#o #ince the rur$' cu#to(er# $re u#u$''0 d$i'0 4$2e e$rner# $nd the0 don5t h$*e (onth'0 inco(e# 'i>e the one# in the ur&$n $re$# h$*e. +o the p$c>$2in2 i# in #($''er unit# $nd 'e##er-priced p$c># th$t the0 c$n $fford 2i*en their >ind of inco(e #tre$(#.

44

THE CORE E 3EDS The t4o &i22e#t pro&'e(# th$t the rur$' Indi$ f$ce# $re I''iter$c0 $nd <ne(p'o0(ent. To inte2r$te the( in one5# :$r>etin2 (i9 en#ure# th$t the product or #er*ice offered en#ure# 4ider p$rticip$tion $nd &etter ch$nce# of #ucce##. Aence8 it 2i*e# the ri#e to the concept of t4o E5#C Educ$tion $nd E(po4er(ent $t the core of our i(pro*ed :$r>etin2 :i9. Thi# concept pre#ent# $n opportunit0 to i(pro*e the 'ife of rur$' Indi$n# $nd thu#8 en#ure th$t the0 $cti*e'0 p$troni,e the co(p$n05# product#. 2; Educ$tionC +ince *$#t ($)orit0 of rur$' Indi$ '$c># e*en &$#ic educ$tion 'e*e'# $nd (odern out'oo>8 it i# i(port$nt th$t the co(p$n0 introducin2 $ ne4 product #hou'd 'oo> $t &ui'din2 c$te2or0 $nd not )u#t #e''in2 product#. It i# i(port$nt to con#i#tent'0 dri*e ho(e the point th$t the cu#to(er5# 'ife i# 2oin2 to &e enh$nced &ec$u#e of product5# con#u(ption. 3; E(po4er(entC Bec$u#e of hu2e di#2ui#ed une(p'o0(ent 'e*e'# in $2ricu'ture $nd '$c> of e(p'o0(ent opportunitie# in other #ector#8 $n0 concept 4hich u#e# $n0 #cope for inco(e 2ener$tion 4ou'd &e f$*ored (ore th$n the tr$dition$' ($r>etin2 (i9 concept#. A<L run# the pro2r$( of +e'f-Ae'p ;roup# 6+A;78 4hich oper$te 'i>e direct-to-ho(e di#tri&utor#. The (ode' con#i#t# of 2roup# of 61 -207 *i''$2er# &e'o4 the po*ert0 'ine 6"#.. 0 per (onth7 t$>in2 (icro-credit fro( &$n>#8 $nd u#in2 th$t to &u0 A<L product#8 4hich the0 4i'' then direct'0 #e'' to con#u(er#.

RETAILER/ /$t$ on rur$' con#u(er &u0in2 &eh$*ior indic$te# th$t the rur$' ret$i'er inf'uence# 3 M of purch$#e occ$#ion#. Therefore8 #heer product $*$i'$&i'it0 c$n deter(ine &r$nd choice8 *o'u(e# $nd ($r>et #h$re. +o8 ro'e of ret$i'er i# $'#o *er0 i(port$nt in rur$' ($r>et#8 &ec$u#e he 4ou'd &e one 4ho pro*ide# infor($tion re2$rdin2 -u$ntit0 of p$c>8 pro(otion$' #che(e#8 inf'uence# of $d*erti#e(ent8 con#u(er feed&$c> etc to co(p$n0. +o the ret$i'er p'$0# $ *er0 &i2 ro'e here. The rur$' cu#to(er 2oe# to the #$(e #hop $'4$0# to &u0 hi# thin2#. And there i# $ *er0 #tron2 &ondin2 in ter(# of tru#t &et4een the t4o. The &u0in2 &eh$*ior i# $'#o #uch th$t the cu#to(er doe#n?t $#> for the thin2# &0 &r$nd &ut 'i>e << 4!aanch r$!e% (aala "a'$n 5ena4. No4 it i# on the ret$i'er to pu#h 4h$te*er &r$nd he 4$nt# to pu#h $# the0 c$n inf'uence the &u0er *er0 e$#i'0 $nd *er0 #tron2'0 on the preference#. Aence8 there i# the need to 2et hi# #upport throu2h proper tr$de pro(otion $cti*itie# to 2et (ore ret$i' #he'f $nd con*incin2 on hi# #ide to ($>e the cu#to(er &u0 the &r$nd.

4!

DISTRI(UTION STRATEGIES OF HUL

The need for inno*$ti*e $nd effecti*e di#tri&ution net4or> for rur$' $re$# i# e*ident fro( the f$ct th$t A<L h$# co(e up 4ith ne4 di#tri&ution ch$nne'# to c$ter to rur$' ($r>et#. For e28 Pro>e*t Stre%"l!ne 4$# conceptu$'i,ed to #i2nific$nt'0 enh$nce the contro' on the rur$' #upp'0 ch$in8 throu2h $ net4or> of rur$' #u&-#toc>i#t8 4ho $re &$#ed in the#e *er0 *i''$2e#. A# p$rt of the pro)ect8 hi2her -u$'it0 #er*icin28 in ter(# of fre-uenc08 credit $nd fu'''ine $*$i'$&i'it08 4$# &e pro*ided to rur$' tr$de. The pi*ot of +tre$('ine i# the "ur$' /i#tri&utor 6"/78 4ho h$# 1 -20 rur$' #u&-#toc>i#t# $tt$ched to hi(. E$ch of the#e #u&#toc>i#t# i# 'oc$ted in $ rur$' ($r>et. The #u&-#toc>i#t# then perfor(# the ro'e of dri*in2 di#tri&ution in nei2h&orin2 *i''$2e# u#in2 uncon*ention$' (e$n# of tr$n#port #uch $# tr$ctor8 &u''oc> c$rt8 et $'. The +tre$('ine #0#te( h$# e9tended direct A<L re$ch in the#e ($r>et# to $&out 3.M of Indi$?# rur$' popu'$tion fro( 2 M in 199 $nd the nu(&er of A<L &r$nd# $nd +E<# #toc>ed &0 *i''$2e ret$i'er# h$# 2one up #i2nific$nt'0.

4.

HUL MODEL/ A<L h$*e $dopted the 4 %5# in $ddition to 1 (ore %8 1 " 6"ETAILE"7 AN/ 2 E5#. +o the ne4 :A"EETIN; :IQ (ode' $dopted &0 A<L 'oo> 'i>eC

41

CONSUMER SALES PROMOTION

The i(port$nce of con#u(er #$'e# pro(otion in the ($r>etin2 (i9 of the f$#t (o*in2 con#u(er 2ood# 6F:C;7 c$te2or0 throu2hout the 4or'd h$# incre$#ed. Co(p$nie# #pend con#ider$&'e ti(e in p'$nnin2 #uch $cti*itie#. Ao4e*er8 in order to enh$nce the effecti*ene## of the#e $cti*itie#8 ($nuf$cturer# #hou'd under#t$nd con#u(er $nd ret$i'er interpret$tion# of their pro(otion$' $cti*itie#. A #tud0 of the#e perception# 4i'' re*e$' their preference#8 their >no4'ed2e8 $nd (oti*$tion#. In Indi$ f$#t (o*in2 con#u(er 2ood# 6F:C;7 c$te2or0 h$# 4itne##ed $n out&ur#t of #$'e# pro(otion $cti*itie# in the po#t-'i&er$'i,$tion er$. Thi# pro)ect #tud0 thou2h e9p'or$tor0 h$# con#idered perception# for price $# 4e'' $# non-price pro(otion# in toi'et #o$p c$te2or0. The re$#on# for the #tud0 4ereC 9!: The 4ide#pre$d u#e of #$'e# pro(otion# in toi'et #o$p c$te2or0 9!!: Ai#toric$''08 4hene*er there 4$# $ do4n4$rd trend in 2ro4th8 #$'e# pro(otion $cti*itie# too> the front #e$t of pro(otion$' (i9. 9!!!: Co(p$nie# p'$nned the#e $cti*itie# 4ith in4$rd 'oo>in2 *ie4 hence it 4$# fe't th$t it 4ou'd &e u#efu' to under#t$nd the perception# of con#u(er# $nd ret$i'er# re2$rdin2 #$'e# pro(otion $cti*itie# to i(pro*e the effecti*ene## of the#e $cti*itie#.

49

LATEST AD0ERTISING TRENDS

L$#t three-four 0e$r# h$*e #een $ tre(endou# incre$#e in the nu(&er of re2ion$' ch$nne'# $# 4e'' $# the $(ount of $d*erti#in2 on it. The entire $d*erti#in2 #cen$rio i# do(in$ted &0 F:C; c$te2orie# $nd (ore recent'08 in the '$#t one or t4o 0e$r#8 &0 ce''u'$r phone#J ce''u'$r phone #er*ice c$te2orie#. F:C; c$te2orie#8 4hich do(in$te the ($r>et #cen$rio8 inc'ude toi'et #o$p#8 tooth p$#te#8 #h$(poo#8 re$d0 to e$t food $nd f$irne## cre$(#. But out of $'' the#e c$te2orie#8 the (o#t he$*i'0 $d*erti#ed c$te2or0 $cro## the entire ch$nne' 4hether re2ion$' or n$tion$' i# the toi'et #o$p# c$te2or0.

RESEARCH METHODOLOGY
6e"earch T%!e: E9p'or$tor0 "e#e$rchC 5ata *ollection Tool: Rue#tionn$ire. In-depth inter*ie4. 6e"earch 3rea: Noid$

S%"?l!n' Pl%n/<
Sam!le t%!e: <#er# of the Toi'et +o$p.

Sam!le Si7e/ 100 peop'e &et4een the $2e# of 20-40 0e$r#. Primar% 5ata: The pri($r0 d$t$ i# co''ected throu2h -ue#tionn$ire# $nd in-depth inter*ie4. Secondar% 5ata: The #ource# of #econd$r0 d$t$ $re *$riou# re#e$rche# conducted &0 A<L8 &u#ine## ($2$,ine# $nd internet.

RESEARCH AND SUR0EY METHODOLOGY

The re#e$rch #tud0 ent$i'ed t4o ($)or ph$#e#C 9I: Pre< !el& Stu&,/< 9%: <n#tructured in-depth inter*ie4# 4ere conducted to cre$te the initi$' -ue#tionn$ire 6the in#tru(ent7. 9=: E9pert opinion# on the -ue#tionn$ire 4ere co''ected $nd further i(pro*e(ent# 4ere ($de to the -ue#tionn$ire. 9II: F!el& Stu&,/< 9%: A #tructured -ue#tionn$ire 4$# prep$red $nd the #ur*e0 4$# conducted &0 e9p'$inin2 the purpo#e of the re#e$rch to the re#pondent# $nd $d(ini#terin2 the -ue#tionn$ire. 9=: A #p'it p$ne' te#t 4$# $'#o conducted to te#t cert$in -ue#tion# th$t 4ere fe't to &e in$de-u$te in their de#i2n8 to e*o>e re#pon#e# fro( the re#pondent# $nd to te#t the effect of ch$n2in2 the #tructure of the#e -ue#tion#. :o#t of the -ue#tion# in the #ur*e0 $re not di#2ui#edH &ut to $##e## cert$in non-f$ctu$' *$ri$&'e# di#2ui#ed -ue#tion# $re u#ed. For e9$(p'e8 there $re #o(e -ue#tion# pert$inin2 to the effecti*ene## of e($i'8 internet etc. 4hich (e$#ure the $ttitude# of the re#pondent $nd 4e t$>e the#e d$t$ $# the pro90 for th$t of the or2$ni,$tion $# $ 4ho'e. The r$tion$' &ehind thi# i# th$t the re#pondent# $re t0pic$''0 top ($n$2e(ent per#onne' in the Infor($tion Techno'o20 dep$rt(ent of the or2$ni,$tion $nd the0 $re in $ po#ition to $##e## the i(p$ct of the#e techno'o2ie# on their or2$ni,$tion. In #o(e c$#e#8 to te#t the re'e*$nce of h0pothe#e# $nd to $##e## the i(p$ct of the -ue#tionn$ire on the re#pondent8 per#on$' inter*ie4# 4ere co(&ined 4ith the co(p'etion of the -ue#tionn$ire.

Both the p$ne'# recei*ed identic$' tre$t(ent. The -ue#tionn$ire *er#ion 4$# ch$n2ed &ut the (ode of $d(ini#tr$tion etc. re($ined the #$(e to pre#er*e the inte2rit0 of the co(p$ri#on#. E*$'u$tion of the #p'it p$ne' te#t# 4$# done $'on2 4ith the $n$'0#i# of the ori2in$' -ue#tionn$ire. The techni-ue# inc'uded co(p$ri#on of re#pon#e di#tri&ution# $nd e9$(in$tion of ite( non-re#pon#e d$t$. :odific$tion# in #o(e -ue#tion#J ite(# u#ed in the -ue#tion# 4ere ($de to incre$#e the re#pon#e r$te $nd effecti*ene## of the -ue#tionn$ire. +o(e of the re#pondent# h$d re#er*$tion# $&out #o(e -ue#tion# in the initi$' -ue#tionn$ire8 due to the #en#iti*e n$ture of the topic# $ddre##ed. Thi# nece##it$ted #o(e ch$n2e# in the '$ter *er#ion# of the -ue#tionn$ire.

RESPONDENTS AND DATA COLLECTION

The popu'$tion $ddre##ed &0 the #ur*e0 co(pri#e# of tho#e8 4ho u#e *$riou# toi'etr0 ite(#. The ($in re#pondent# 4ere the 2ener$' pu&'ic $# toi'etr0 #o$p# $re u#ed &0 $'' the peop'e. It# ($in o&)ecti*e i# to >no4 $&out the &u0in2 &eh$*ior $nd the 'i>e# $nd di#'i>e# of the con#u(er#. B$#ic$''0 the re#e$rch 4$# done to >no4 4h$t the con#u(er thin># &efore &u0in2 the product8 4h$t the0 thin> $&out the product $nd 4h$t the0 4$nt fro( the product i.e. their need.

EFPLORATI0E RESEARCH SYSTEM

The ($r>etin2 re#e$rch proce## $dopted &0 u# i# $# fo''o4#C 5efine the !ro'lem and re"earch o'8ecti&e": The o&)ecti*e of thi# re#e$rch i# to #tud0 the p$#t $nd current ($r>etin2 $nd de($nd trend#. The re#e$rch hi2h'i2ht# *$riou# ($r>etin2 $nd de($nd concern# f$ced &0 A<L in the #o$p c$te2or0. 5e&elo! the re"earch !lan: Thi# inc'ude#C %ri($r0 d$t$ Focu#-2roup re#e$rch Rue#tionn$ire# +$(p'in2 p'$nC <r&$n peop'e of the (idd'e c'$##. Both ($'e $nd fe($'e &et4een the $2e# of 20 to 40. +$(p'in2 +i,eC 3

INFERENCES ON IMPLICATI0E RESEARCH

Fo''o4in2 $re the inference# ($de fro( the re#e$rch 4hich c'o#e'0 ($tche# 4ith the +BOT An$'0#i# of A<L.

SOME FACTS O(SER0ED FROM THE RESULTS SO O(TAINED/

L<Q #ti'' ru'e# the #o$p ($r>et 4ith #u&#t$nti$' ($r>et #h$re. Other# 4hich inc'ude /ODE $'#o h$*e #o(e #h$re in hi2her c'$## thu# it #er*e# $# the +TA"+ for A<L. :o#t of the cu#to(er# $re #$ti#fied 4ith the product the0 $re u#in2 $nd the0 $re 'i>e'0 to ret$in the #$(e product $2$in. :o#t of the cu#to(er# thin> th$t the A<L #o$p# $re 2ood 4ith re#pect to other &r$nd# in the ($r>et. Ao4e*er there i# $ c'o#e tie &et4een the peop'e 4ho 4i'' reco((end A<L5# product to other# to the peop'e 4ho 4i'' pro&$&'0 not reco((end it. Thi# ($0 &e $ concern for A<L &ut due to there recent $tt$c>in2 ($r>etin2 6+"E IN L<Q A/7 #tr$te20 the0 $re tr0in2 to re2$in there ($r>et #h$re.

DATA ANALYSIS

9olu"e Gro$th o So%?)G on T0 &ur!n' 1%nu%r, < M%, 3626;

/urin2 G$nu$r0 -:$0 20108 $d*erti#in2 of +o$p#S c$te2or0 on TD h$# #een $ ri#e of 19 per cent co(p$red to #$(e period in 0e$r 2009.

Note/ So%?)G C%te'or, onl, !n*lu&e) (%th!n'HTo!let) So%?) %n& not the L%un&r,HW%)h!n' So%?); !

Sh%re o 0%r!%nt) o So%?)G on T0 &ur!n' 1%n < M%, 3626;

/urin2 G$nu$r0 - :$0 20108 ?%rotection-A0ur*edicJ:edic$ted? #e2(ent h$d the '$r2e#t #h$re 6i.e. 49 per cent7 of o*er$'' $d*erti#in2 #h$re of +o$p#S on TD8 fo''o4ed &0 ?Nouri#hin2-Be$ut0? $nd ?A0dr$tion-:oi#turi#in2? +o$p# 4ith 2! per cent $nd 13 per cent #h$re re#pecti*e'0.

Note/ So%?)G C%te'or, onl, !n*lu&e) (%th!n'HTo!let) So%?) %n& not the L%un&r,HW%)h!n' So%?);

To? A&+ert!)er) o So%?)G on T0 &ur!n' 1%n < M%, 3626;

?Aindu#t$n <ni'e*er Ltd?8 ?ITC Ltd? $nd ?"ec>itt Benc>i#er 6Indi$7 Ltd? 4ere the Top three $d*erti#er#8 contri&utin2 .! per cent #h$re of o*er$'' +o$p#S c$te2or0 $d pie on TD durin2 G$nu$r0 - :$0 2010.

Note/ So%?)G C%te'or, onl, !n*lu&e) (%th!n'HTo!let) So%?) %n& not the L%un&r,HW%)h!n' So%?);

Ne$ =r%n&) o So%?)G%&+ert!)e& on T0 &ur!n' 1%n<M%,3626

?Di*e' +$tin +oft?8 ?Lu9 +tr$4&err0 3 Cre$(? $nd ?Di*e' /i Bi''# Toi'et +o$p? 4ere top three ne4 +o$pS &r$nd# $d*erti#ed on TD durin2 G$nu$r0 - :$0 2010.

Note/ So%?)G C%te'or, onl, !n*lu&e) (%th!n'HTo!let) So%?) %n& not the L%un&r,HW%)h!n' So%?);

!0

To? St%te) !n So%?)G %&+ert!)!n' on T0 &ur!n' 1%n < M%, 3626

/urin2 G$nu$r0 -:$0 20108 +o$p#S c$te2or0 $d*erti#in2 on "e2ion$' $nd N$tion$' ch$nne'# in the r$tio of !1C39. ?:$h$r$#htr$?8 ?Andhr$ %r$de#h? $nd ?E$rn$t$>$? 4ere the top three #t$te# $ccountin2 for (ore th$n 0 per cent $d*erti#in2 #h$re of +o$p#S c$te2or0 on "e2ion$' ch$nne'# durin2 G$nu$r0 - :$0 2010.

Note/ So%?)G C%te'or, onl, !n*lu&e) (%th!n'HTo!let) So%?) %n& not the L%un&r,HW%)h!n' So%?);

!1

A+er%'e %&+ert!)!n' re#uen*, o So%?)G on T0 &ur!n' 1%n<M%,3626

Co(p$red to G$nu$r0 - :$0 20098 $*er$2e $d*erti#in2 fre-uenc0 of +o$p#S #$4 $ ri#e of 14 per cent on TD durin2 G$nu$r0 - :$0 2010.

Note/ So%?)G C%te'or, onl, !n*lu&e) (%th!n'HTo!let) So%?) %n& not the L%un&r,HW%)h!n' So%?);

!2

Cele=r!t, En&or)e"ent) or So%?)G on T0 &ur!n' 1%n<M%, 3626;

?%ri0$n>$ Chopr$? 4ith 24 per cent #h$re 'e$d# in Ce'e&rit0 endor#e(ent of +o$p#S on TD c'o#e'0 fo''o4ed &0 ?E$reen$ E$poor? 4ith 23 per cent #h$re durin2 G$nu$r0 - :$0 2010

The third #pot of the Ce'e&rit0 Endor#e(ent ch$rt for +o$p#S 4$# occupied &0 ?Tu*r$) +in2h? durin2 G$nu$r0 - :$0 2010.

Note/ So%?)G C%te'or, onl, !n*lu&e) (%th!n'HTo!let) So%?) %n& not the L%un&r,HW%)h!n' So%?);

!3

/urin2 20108 TD $d*erti#in2 of %er#on$' C$re #ector #$4 $ ri#e of 22 per cent co(p$red to 2009.

!4

Sh%re o Per)on%l C%re C%te'or!e) on T0 &ur!n' 3626

/urin2 20108 ?%er#on$' A02iene? c$te2or0 h$d ($9i(u( #h$re i.e. 44 per cent of o*er$'' %er#on$' C$re #ector $d*erti#in2 on TD fo''o4ed &0 ?A$ir C$re? $nd ?%er#on$' Ae$'thc$re? 4ith 2! per cent $nd 1! per cent #h$re re#pecti*e'0.

To? Su= C%te'or!e) o Per)on%l C%re (r%n&) %&+ert!)e& on T0;

?Toi'et +o$p#? 8 ?+h$(poo#?8 ?Tooth %$#te#? 4ere the top 3 #u& c$te2orie# contri&utin2 39 per cent #h$re of o*er$'' %er#on$' C$re #ector $d*erti#in2 on TD durin2 2010.

To? A&+ert!)er) o Per)on%l C%re =r%n&) on T0 &ur!n' 3626; !!

?Aindu#t$n <ni'e*er Ltd?8 ?%rocter $nd ;$(&'e?8 ?"ec>itt Benc>i#er 6Indi$7 Ltd? 4ere the top 3 $d*erti#er#8 the0 contri&uted 3! per cent of o*er$'' %er#on$' C$re #ector $d*erti#in2 on TD durin2 2010.

!.

Ne$ (r%n&) o Per)on%l C%re )e*tor l%un*he& on T0 &ur!n'3626;

?Lu9 +tr$4&err0 $nd Cre$(?8 ?A9e /$r> Te(pt$tion? $nd ?+un#i'> A$ir F$'' +o'ution? 4ere the top 3 ne4 %er#on$' C$re &r$nd# $d*erti#ed on TD durin2 2010. /urin2 20108 4 of the Top 10 ne4 %er#on$' C$re &r$nd# $d*erti#ed on TD 4ere ?ITC Ltd? $nd 3 &e'on2ed to Aindu#t$n <ni'e*er Ltd 4hich h$d occupied the Top 3 p'$ce#.

!1

To? Cele=r!t!e) en&or)!n' Per)on%l C%re (r%n&) on T0;

?%ri0$n>$ Chopr$? 4$# the top ce'e&rit0 endor#in2 %er#on$' C$re &r$nd# on TD fo''o4ed &0 ?E$reen$ E$poor? $nd ?+u#h(it$ +en? durin2 2010.

!9

To? 26 (r%n&) !n the In&!%n "%r.et

.0

STUDY ON CONSUMER PERCEPTIONS/

2; Current u)%'e o to!let )o%? (r%n&)/

T$&'e &e'o4 2i*e# current u#$2e of toi'et #o$p# $cro## different inco(e c$te2orie# 6re#e$rch 4$# conducted 4ith 30 peop'e7C

.1

3; REASONS FOR SWITCHING (RANDS/

Thi# cou'd &e #een fro( T$&'e &e'o4C

A# o&*iou# fro( the $&o*e t$&'e8 #$'e# pro(otion 4$# not the ($in re$#on for #4itchin2 &r$nd in thi# c$te2or0. Need for *$riet0 4$# the predo(in$nt re$#on. It 4$# found throu2h deeper pro&in2 th$t e*en thou2h con#u(er# 4ou'd h$*e #4itched &r$nd# due to #$'e# pro(otion8 there 4$# re'uct$nce $&out $d(ittin2 the #$(e $nd *$riet0 4$# 2i*en $# $ re$#on for #4itchin2. It 4$# further found th$t con#u(er# h$d po#iti*e di#po#ition to4$rd# pro(oted &r$nd. A# $ re#u't 4hen toi'et #o$p &r$nd 4$# ch$n2ed for *$riet08 the &r$nd 4hich 4$# pro(oted h$d hi2her pro&$&i'it0 of purch$#e th$n non-pro(oted &r$nd#.

.2

4; RECALL OF (RANDS (EING PROMOTED/

It cou'd &e #een fro( T$&'e &e'o4C A# #een fro( $&o*e8 Lu9 6;o'd +t$r offer I (o#t pro(oted $nd $d*erti#ed &r$nd7 h$d the ($9i(u( rec$''. Thi# &r$nd u#ed TD $d*erti#e(ent he$*i'0 to $nnounce #$'e# pro(otion offer#. +i9 out of 30 did not rec$'' $n0 #$'e# pro(otion #che(e on $n0 &r$nd. It cou'd &e inferred th$t. i7 A$rd core 'o0$'# to $ p$rticu'$r &r$nd 6e2. A$($(7 4ou'd ne*er 6p$0 $ttention to $n0 $nnounce(ent# of $n0 other toi'et #o$p &r$nd. ii7 <n'e## #$'e# pro(otion offer# 4ere proper'0 co((unic$ted to the t$r2et $udience8 re-uired i(p$ct (i2ht not &e cre$ted $nd iii7 <n'e## pro(otion$' offer# 4ere of #i2nific$nt *$'ue to $ con#u(er8 it 4$# 'i>e'0 to 2et unnoticed $ndJor i2nored.

.3

I; WILLINGNESS TO (UY ON SALES PROMOTION OFFER

+i9t0-three per cent of the #$(p'e did not #ho4 4i''in2ne## to &u0 $ &r$nd due to pro(otion 4hi'e 2.M #ho4ed 4i''in2ne## $nd 10M 4ere not #ure. Thi# indic$te# th$t 4hen 2.M #ho4ed 4i''in2ne## $nd 10M con#u(er# 4ho 4ere not #ure8 the#e 2roup# (i2ht &e 'ured throu2h inno*$ti*e $nd 'ucr$ti*e #$'e# pro(otion offer.

J; A(ILITY TO INDUCE TRIAL

Fort0 per cent of the re#pondent# h$d #$id th$t #$'e# pro(otion h$d the $&i'it0 to induce tri$' 4hich reinforce# the $&o*e inference.

.4

LIMITATIONS OF THE STUDY

1. The #tud0 4$# confined to Noid$ cit0 on'0 $nd difference# in perception $nd profi'e ($0 e9i#t for other p$rt# of the countr0. 2. The #$(p'in2 4$# &$#ed on con*enience th$t cou'd h$*e 2i*en ri#e to error#. 3. Thi# re#u't ($0 not &e $ppropri$te for the 4ho'e popu'$tion 6i.e uni*er#e7.

CONCLUSION
After conductin2 the #ur*e08 o&#er*ed c$n &e ($de th$t A<L #ti'' ru'e# the F:C; ($r>et. There pre(iu( c'$## 'i>e L<Q $nd LIFEB<OT $ct# $# the CA+A COB for the( $nd other# 'i>e /ODE i# 2ro4in2 f$#t in the ($r>et. A<L i# in $ N#tic>0 2roundO $nd find# it#e'f &et4een de*i' $nd deep #e$8 on one end i# 'oc$' $nd intern$tion$' co(petitor# 4hi'e on other $re hu(on2ou# popu'$tion in *i''$2e#. FA+T :o*in2 Con#u(er ;ood# 6F:C;7 #ector 4i'' 4itne## (ore th$n 0 per cent 2ro4th in rur$' $nd #e(i-ur&$n Indi$ &0 20128 $ccordin2 to $n $n$'0#i# c$rried out &0 the A##oci$ted Ch$(&er# of Co((erce $nd Indu#tr0 of Indi$. A<L h$# 'e$rned it# 'e##on the h$rd 4$0 th$t IN/IA i# fu'' of *$2$rie# in #pite of the f$ct th$t A<L h$# #o ($n0 product# in the ($r>et 8 to c$ter to the 4hi(# of cu#to(er i# $'(o#t i(po##i&'e. There i# *er0 pecu'i$r ($r>et d0n$(ic# pre*$'ent in the rur$' p$rt# #o (u'ti n$tion$' 'i>e A<L find it difficu't to fo''o4 the trend# here in co(p$ri#on of 'oc$' ($nuf$cturer#. The rur$' ($r>et ($0 &e $''urin2 &ut it i# not 4ithout pro&'e(# #uch $# 'o4 per c$pit$ di#po#$&'e inco(e# $nd '$r2e nu(&er of d$i'0 4$2e e$rner#. +o(e of the other pro&'e(# $##oci$ted 4ith rur$' ($r>et# $re $cute dependence on the *$2$rie# of the (on#oon8 #e$#on$' con#u(ption 'in>ed to h$r*e#t#8 fe#ti*$'# $nd #peci$' occ$#ion#8 poor ro$d# $nd po4er pro&'e(#. The other difficu't0 th$t F:C; co(p$nie# $re 'i>e'0 to f$ce i# th$t of 'o2i#tic#. Indi$?# !2.8000 *i''$2e# $re #pre$d o*er 3.2 (i''ion #- >(. /e'i*erin2 product# to the . 0 (i''ion Indi$n# 'i*in2 in rur$' $re$# 4i'' &e $ tou2h t$#>.

.!

:oreo*er our findin2# indic$te th$t 4ith re#pect to the n$ture of the #che(e#8 pre(iu(# 6free 2ift#7 4ere found to &e the (o#t fre-uent'0 u#ed in &oth pre(iu( $nd popu'$r toi'et #o$p c$te2or08 fo''o4ed &0 price off#. "et$i'er5# percei*ed price off# to h$*e re'$ti*e'0 2re$ter i(p$ct co(p$red to $n0 other for(# of #$'e# pro(otion. In 'ine 4ith the ret$i'er#5 perception#8 the findin2# of con#u(er perception# indic$ted th$t price off# 4ere the (o#t preferred t0pe of #$'e# pro(otion. "et$i'er# #t$ted th$t ro'e of 4ord of (outh $nd te'e*i#ion $d*erti#in2 4$# *er0 i(port$nt in pro*idin2 infor($tion input# to the con#u(er# re2$rdin2 #$'e# pro(otion $cti*itie#. Thi# perception of ret$i'er# 4$# #upported &0 the con#u(er un$ided rec$'' of #$'e# pro(otion #che(e# 4hich 4ere 4ide'0 $d*erti#ed. A# the ret$i'er inter$ct# $nd o&#er*e# con#u(er# (ore fre-uent'0 $nd c'o#e'0 th$n the ($nuf$cturer8 it 4ou'd &e u#efu' for the co(p$nie# to incorpor$te perception# . Be &e'ie*e th$t 0oun2er $2e-2roup# $re (ore e9peri(ent$' in n$ture8 $(en$&'e to tr0in2 ne4 &r$nd#8 $nd #ou2htJ'oo>ed for or $#>ed 4hether there 4ere $n07 #$'e# pro(otion #che(e# runnin2 on $n0 toi'et #o$p $t the ti(e of purch$#e. A'#o the per#on 2oin2 to the #hop for the purch$#e of #o$p i# the fin$' deci#ion ($>er of the &r$nd. Aence it i# e##enti$' th$t co(p$nie# need to de#i2n $ttr$cti*e8 #tri>in28 *i#i&'e %O%# for #che(e $nnounce(ent#. A'#o fo''o4in2 inference c$n &e ($de th$t <NILIDE" i# u#in2 ne4 inno*$ti*e (edi$

c$(p$i2n# 4hich $re not on'0 $''urin2 cu#to(er# &ut $'#o incre$#in2 &r$nd $4$rene##. The the(e for (edi$ c$(p$i2n i# $'(o#t co((on for <ni'i*er &ut it ch$n2e# the $pp'ic$tion for e.2. N/I"T I+ ;OO/O i# tr$n#for(ed into N/AA; ACAAET AAINO in IN/IA.

..

CHAPTER E 4
RECOMMENDATIONS

.1

RECOMMENDATIONS

The t4o point re(edie# for A<L throu2h 4hich it c$n reco*er it# 'o#t 2round# $reC 2; "et$i'in2 i# the ne4 ($ntr$ in ($r>etin2 the#e d$0#H A<L #hou'd co(e up 4ith it# e9c'u#i*e #tore# in (etro# $nd #u&-ur&$n $re$#. In thi# 4$0 it c$n not on'0 decre$#e nu(&er of inter(edi$rie# &ut $'#o direct cont$ct 4ith the cu#to(er# c$n &e e#t$&'i#hed. 3; A<L #hou'd identif0 th$t there $re t4o #e2(ent# in Indi$n ($r>et th$t h$*e *$#t potenti$' 4hich $re 0outh $nd rur$' ($r>et. +o8 A<L #hou'd introduce product #pecific$''0 to thi# #e2(ent8 there i# #pecific #o$p in the ($r>et 4hich 'e*er$2e# on the 0outh $nd rur$' $#pect of Indi$. I; The or2$ni,$tion$' pre##ure8 ti2ht fin$nci$' contro' $nd o*er$'' du'' ne## ($>e the ($r>eter# to #u'> $nd #-uee,e. But8 ($r>eter# h$*e to &e (ore focu#ed )u#t $pp'0 the(#e'*e#. Then the0 c$n re)oice th$t the #prin2 4i'' not &e too f$r. Ap$rt fro( the u#u$' 4%#8 it# $'' in the rece##ion$r0 3%5#8 perception8 p'$nnin2 $nd p'underin2 of the ($r>et to find 2ro4th out of de2ro4th. One 4ho find# the opportunit0 re$p# the &enefit. J; +o(e ti(e8 #'o4 do4n ($0 &e $ &'e##in2 in di#2ui#e for #o(e co(p$nie#. <pon co(pu'#ion#8 #o(e co(p$nie# ($0 &e forced to enter #o(e ne4 c$te2orie# $nd either >no4in2'0 or un>no4in2'0 the0 ($0 end up h$*in2 hit the )$c>pot 4ith #o(e niche &r$nd 4inner#.

.9

K; Cu#to(er# &eco(e $ r$re co((odit0 in $ #'o4 do4n. Incre$#e pro(otion# $nd incenti*e# to 'ure the(. The Indi$n ($r>et h$# &eco(e #o inten#e th$t e*er0 p'$0er8 inc'udin2 the 'oc$' &r$nd p'$0er h$# &eco(e inte''i2ent enou2h to co(e out 4ith #o(e #che(e or the other. 5; A# $ 2re$t &r$nd &ui'der $nd 4ith princip'e# of #tr$te2ic ($r>etin28 co(p$nie# ($0 h$*e $ tendenc0 to 2i*e $ #toic #(i'e on the 'e##er (ort$'#. It5# $ tr$p $nd do not e*er d$re to (i## the r$ce. It# ti(e to &e $n Indi$n in Indi$.

10

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Philip kotler, V.A., Marketing management, First edition (2007), Himala a P!"lishing Ho!se, M!m"ai.

M#$onald, %.&., $ire#t Marketing'an (ntegrated Approa#h, First

)dition (200*), (r+in,M#-ra+ Hill.

.o"erts, M./., 0erger, P.$., $ire#t Marketing Management, si1th )dition (200*), Prenti#e Hall (nternational (n#., 23A.

3hankar, .a4i, 3er4i#es marketing, 3e#ond edition (2002), 3o!th Asia P!"li#ations, $elhi.

3heth, &.5., Mittal, 0., 5e+man, 0.(., 6ons!mer 0eha4ior, First )dition (7888), the $r den Press, 23A.

11