A MAJOR PROJECT REPORT ON

THE STAIRCASE LEADING HUL TO SUCESS OF

POST GRADUATE DIPLOMA IN MANAGEMENT

BATCH 2010-12

SUBMITTED BY: EKTA JAIN ID- 1008006 PGDM - VI SUBMITTED TO: Prof. Reshma Shrivastava Associate Professor Faculty of Management , DIMAT

DISHA SCHOOL OF MANAGEMENT DISHA EDUCATION SOCIETY Satya Vihar, Vidhansabha-Chandkhuri Marg, Mandir Hasaud Raipur(C.G.)

DECLARATION

I the undersigned solemnly declare that the report of the project work entitled An organizational study on THE STAIRCASE LEADING HUL TO SUCCESS, is based my own work carried out during the course of my study under the supervision of PROF. RESHMA SHRIVASTAVA I assert that the statements made and conclusions drawn are an outcome of the project work. I further declare that to the best of my knowledge and belief that the project report does not contain any part of any work which has been submitted for the award of any other degree/diploma/certificate in this Institute or any other Institute.

_______________ EKTA JAIN Unique ID No.:1008006

CERTIFICATE BY THE PROJECT GUIDE

This is to certify that the work incorporated in the Project THE STAIRCASE LEADING HUL TO SUCESS is a record of research work carried out Ekta Jain bearing Enrollment No.:1008006 under my guidance and supervision for the award of Post Graduate Diploma In Management. To the best of my knowledge the report has been duly completed and checked by me.

Name of Internal Project Guide: Prof Reshma Shrivastava Signature:

CERTIFICATE BY THE HEAD OF THE INSTITUTION

This is to certify that Miss EKTA JAIN of DSM, Trimester VI has successfully completed the major project in partial fulfillment of requirement for the award of Post Graduate Diploma In Business Management , approved by AICTE, Min of HRD Government of India.

This report is the record of authentic work carried out by the student during the academic year 2011-12.

DR.R.S.Mohan Dean (Faculty of Management)

ACKNOWLEDGEMENT
I owe a great many thanks to a great many people who helped and supported me during the Major Project. My deepest thanks to Prof. Reshma Srivastava, the Guide of the project for guiding and correcting various documents of mine with attention and care. She has taken pain to go through the project and make necessary correction as and when needed. I would also thank to The Dean of Faculty of Management Mr. R. S. Mohan and my faculty members without whom this project would have been a distant reality. I also extend my heartfelt thanks to my friends.

_______________________ (Signature of the student) Ekta Jain Unique ID No. 1008006 PGDM VI Trimester

TABLE OF CONTENTS Pages

Chapter 1 1.1 1.2 1.3 1.4 1.5 Chapter 2 Chapter 3 3.1 3.2 3.3 3.4 3.5 3.6 Chapter 4 Chapter 5

Introduction Justification of Research Purpose of Study Objectives of Research Scope of Study Limitations of Study Literature Review Methodology Data Collection Methods Details of Respondents Profile Detail of Variables Scaling Technique Sampling Technique Methods of Analysis Results and Discussion Summary and Conclusion Future Scope of Research References Annexures

8-12 11 12 12 12 12 14 16-18 16 16 17 18 18 18 20-37 39-45 40 40-41 42-45

Chapter-I Introduction

INTRODUCTION

FMCG is the 4th largest sector in Indian economy with a market size of more than $13.1 bn. And expected to become $33.4bn in 2015.200 million people are expected to shift towards processed food. India needs Rs 28bn investment in food sector. In the recession/ slowdown period FMCG industry recorded a growth of 14.5%. Key players of FMCG industry According to the market survey done by BUSINESS TODAY the top 10 companies of FMCG sector are given below.

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Hindustan Unilever Ltd. ITC Nestl India GCMMF (AMUL) Dabur India Asian Paints (India) Cadbury India Britannia Industries Procter &Gamble Marico Industries

HUL is India's largest Fast Moving Consumer Goods (FMCG) company. FMCG came into in existence in 1888 when Sun Light soap was firstly seen at KOLKATA harbor. It was made by Lever brothers in England .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.

FMCG industry analysis

Rivalry among Competing Firms: In the FMCG Industry, rivalry among competitors is very fierce. There are scarce customers because the industry is highly saturated and the competitors try to snatch their share of market. Market Players use all sorts of tactics and activities from intensive advertisement campaigns to promotional stuff and price wars etc. Hence the intensity of rivalry is very high. Potential Entry of New Competitors: FMCG Industry does not have any measures which can control the entry of new firms. The resistance is very low and the structure of the industry is so complex that new firms can easily enter and also offer tough competition due to cost effectiveness. Hence potential entry of new firms is highly viable. Potential Development of Substitute Products: There are complex and never ending consumer needs and no firm can satisfy all sorts of needs alone. There are plenty of substitute goods available in the market that can be re-placed if consumers are not satisfied with one. The wide range of choices and needs give a sufficient room for new product development that can replace existing goods. This leads to higher consumers expectation. Bargaining Power of Suppliers: The bargaining power of suppliers of raw materials and intermediate goods is not very high. There is ample number of substitute suppliers available and the raw materials are also readily available and most of the raw materials are homogeneous. There is no monopoly situation in the supplier side because the suppliers are also competing among themselves. Bargaining Power of Consumers: Bargaining power of consumers is also very high. This is because in FMCG industry the switching costs of most of the goods is very low and there is no threat of buying one product over other. Customers are never reluctant to buy or try new things off the shelf.

1.1JUSTIFICATION OF THE STUDY

Modernization and the worldwide growing demand both in the social and economic field have installed a vast scope of FMCG .Though the FMCG market is sublimed and plenty of the market is discovered, still HUL is able to sustain its maturity stage. Also, the rising income and high growth of Gross Domestic Product of the country has lead to the increasing demand of FMCG products amongst the customers of both rural & urban..

1.2 PURPOSE OF STUDY

The main purpose of the study is to accomplish the following objective:

To know about the various Products offered by the company. To analyze the various strategies adopted by the company. To know the contribution of HUL towards society. To conduct the comparative study with different FMCG co.

1.3 RESEARCH OBJECTIVE:

To get the full knowlegde of the distribution network of HUL To analyze the key factor distinguishing it from its competitors. To find the preference of the customer To study how HUL fulfills customer needs and wants through CSR.

1.4 SCOPE OF STUDY:The study will be beneficial to HUL as its comparison against other FMCG player is being done. The review of various strategy adopted by HUL will enable it to capture further unexplored market and light out the loopholes in its structure.

1.5 LIMITATIONS OF STUDY:-

Chance of the respondents bias is involved in the research. As the research is restricted to Raipur of Chhattisgarh, the result is not applicable to the other district or state or country.

Chapter II
LITERATURE REVIEW

LITERATURE REVIEW
Unilever was the result of the merger between the Dutch margarine company, Margarine Uni & Lever brothers way back in 1930. In India the company offers many household brands like Dove,

Lipton, Rexona etc. HUL is also known for its strong distribution network in India. In order to further strengthened its distribution in the rural areas & to empower the local women HUL launch a project Sakti in 2000 in a district in Andhra Pradesh. So that it can become direct-to-home distributors of HUL products & enjoyed the other benefits from the project. Some of its efforts were also rewarded when four of the HUL brands found place in the top 10 brands list for the year 2008 published in The Economic Times.

Chapter III Methodology

RESEARCH METHODOLOGY
It is the science, which tells the method for doing research; it mainly consists of following main steps:

Determining the purpose or objective of study. Developing Research Design. Determine the data collection method. Developing a sampling plan.

3.1 DATA COLLECTION METHOD:

The Data for this project was collected through Primary and Secondary sources.
It is essential to collect PRIMARY DATA to make sample survey. A successful

and the most popular technique of data collection is through a questionnaire, thus a questionnaire was framed and distributed manually among different wholesalers and retailers in the Raipur region.
SECONDARY SOURCE: This Report is dedicated to Secondary information about

company profile and various decision taken by the company regarding product line expansion, product line pruning and various other matter related to product line. I have collected this information with the help of internet and journals. This report gives you relevant information about various activities taken by Hindustan Unilever limited.

3.2 DETAILS OF RESPONDENTS PROFILE: Male:-20 Female:-30 City: - Raipur

State: - Chhattisgarh Age group:-20 45 Status: - married/ single

3.3 DETAIL OF VARIABLES

1. FOOD DIVISION Unilever is one of the leading food companies in the world. Its mission is to add vitality to life by meeting everyday needs of people everywhere, through branded products that make people enjoy food, enjoy health, and enjoy life.

Savoury and dressings:

A Unilever global leader in savoury and dressings, with strong brands rooted in chefmanship and taste, including Knorr, Hellmanns, Calv, Wishbone, Amora and Bertolli. Our leading savoury brand, Knorr, is Unilevers biggest brand, and is sold in over 100 markets. Its product range includes soups, bouillons, sauces, snacks, noodles, frozen food and meal solutions. A wider savoury product range is marketed around the world under a variety of brand names. Its combined dressings business is the biggest in the world. With Bertolli, which began as a leading Italian olive oil brand, we are building on the qualities associated with Italian food to extend the brand into spreads, dressings and pasta sauces.

Spreads and cooking products HUL leads with the spreads and cooking products category with two key brand families with increasingly consistent positionings around the world. Healthy heart brands Becel and Flora deliver strong growth, particularly with proactiv, through health benefits enabling people to enjoy life to the full. Family brands including Rama, Blue Band and Country Crock are building a positioning based on tasty, nutritious foods for the family. Beverages:

HUL Leads market in tea-based beverages with Lipton, then global market leader in leaf and ready-to-drink tea. Innovations, including Lipton Ice Tea Green and Lipton Aqua, target the growing market for healthy, refreshing beverages. HUL respond with products and brands across our portfolio including SlimFast, whose range includes meal replacement drinks, soups and snack bars. Hindustan unilever limited meets the needs of various customer by providing good nutrition in affordable formats with Annapurna and, under AdeS, a range of tasty, nutritional, soy-based drinks. Ice cream and frozen foods: Hindustan Unilever is worlds leading producer of ice cream, with sales in more than 40 countries. Ice cream products under the Heart brand, including Cornetto, Magnum, Carte dOr and Solero, are sold internationally. Breyers, Ben & Jerrys, Klondike and Popsicle are leading North American-based brands. Ben & Jerrys is also sold in Europe. Although not a separate reporting category as its results are reported within the categories above, Unilever Food solutions is a global food service business providing solutions for professional chefs and caterers. For example, it provides preprepared ingredients that save time and new ways of serving food on a large scale at consistent quality.

2. HOME AND PERSONAL CARE

Unilever Home and Personal Care has some of the worlds most successful brands, such as Dove, Lux, Omo and Surf. All its brands are about looking good, feeling good and getting more out of life. With a strong heritage in hygiene and personal care, combined with deep consumer insights. This brand portfolio adds vitality to life and delivers value to our business.

Home care product segment: Company is market leaders in laundry products in developing and emerging markets, and hold number two positions in North America and most of Europe. Its products have been

developed to meet the diverse range of consumer needs to clean and care for their clothes. They include tablets for convenience, traditional powders and liquids for washing by hand or machine. Tailored products, including soap bars, are available for lower income consumers. It brands include Comfort, Omo, Radiant, Skip, Snuggle and Surf, and they are available in over 100 countries. Household care products are designed to meet most cleaning and hygiene needs around the home. Where Cif and Domestos hold strong positions in the key markets in which they operate. Personal care HUL lead the global deodorants and skin cleansing markets, and are in the top three in daily hair care and mass-market skin care. Six global brands Axe, Dove, Lux, Ponds, Rexona and Sunsilk are the core products in these categories. They are complemented by Suave, mainly in North America, and health brands such as Clear, Lifebuoy and Vaseline, together with a selection of regional and local jewels. In oral care we have strong positions in a number of countries in Europe and in developing and emerging markets, particularly with our Signal and Close Up toothpaste brands. Its global prestige fragrance business is based on the Calvin Klein range, which includes one, Eternity and Obsession, complemented by ranges developed with other designers.

3.4 SCALING TECHNIQUE: In this research I have use two methods of scaling Nominal scale Ordinal scale

3.5 SAMPLING TECHNIQUE:-

Sample location:- location means what are the places from where we will be

seeking the information for our research. Our sample location is Raipur. we will going to the customers directly.

Sample size:-it denotes the number of people from where we would be getting the

information. The number of respondent is 50

Sample procedure: -It is a procedure where some representative or informants are

selected from universe. So cluster sampling is being used in this survey.

3.6 METHODS OF ANALYSIS: Percentage analysis method: simple percentage method analysis refer to a special kind of ratio, with the help of absolute figures , it will be difficult to interpret any meaning from the collection data, but when percentages are found out then it becomes easy to find the relative difference between two or more attributes
Percentage = No of respondent/total No. of respondent * 100

Chapter IV Results and Discussion

Ques 1) Which of the brand is most preferred by the customer?

A) For bathing soaps Lux Liril Dove

Interpretation
57% of the respondents feels that the Lux is the most preferred brand by the customer followed by Dove and Liril.

B) Detergents Surf Wheel Rin

Interpretation 51% of the respondents feels that the Surf is the most preferred brand by the customer followed by Rin and Wheel.

C) Cosmetics Lakme Ponds Fair & Lovely

Interpretation 47% of the respondents feels that Fair & Lovely is the most preferred brand by the customer followed by Ponds and Lakme.

D) Beverages Bru coffee Taj Mahal Tea Tazaa Tea

Interpretation 46% of the respondents feels that Taj Mahal tea is the most preferred brand by the customer followed by bru coffee and Tazaa tea.

Ques 2) Rate the distribution Process of the Company? Good Average Poor

Interpretation
55% of the respondents feels that the distribution Process of the Company is good,37% feels its average while 8% found it to be poor.

Ques 3) Rate the Product Line of the company related to FMCG? Excellent Good Poor

Interpretation
65% of the respondents feels that the Product Line of the company related to FMCG is Excellent, 26% feels its good while 9% found it to be poor.

Chapter-V
Summary and Conclusion

SUMMARY:That Hindustan Unilever (HUL) is the largest Player, FMCG company in the country and has one of the widest portfolio of products sold via a strong distribution channel.

Through the analysis it can be interpreted that it owns and markets some of the most popular brands in the country across various categories, including soaps, detergents, shampoos, tea and face creams. Also the brand and the product awareness of HUL is widely spread among the customers which add-ons to HUL success. .

CONCLUSION:Company is having good postion in the market and they are offering quality product in the market. Unilever has over the past 5 years been actively involved in setting standards for social and environmental behaviour and conduct. It does this in a very systematic way and is in the process of developing procedures to make the developed standard applicable throughout all of its operations. With 400 brands spanning 14 categories of home, personal care and foods products, no other company touches so many people's lives in so many different ways. They have a wide and diverse set of competitors in consumer goods businesses. Many of they also operate on an international scale, but others have a narrower regional or local focus. Competition is a normal part of business. They aim to compete and give value consumers, customers and shareholders in following ways: They continually developing new and improved products. They are sharing innovations and concepts with businesses all around the world. HUL is striving to lower the cost of our sourcing, manufacturing and distribution They support efforts to create a more open competitive environment through the

processes while still maintaining, and improving, the quality of our products. liberalisation of international trade.

5.1 FUTURE SCOPE OF RESEARCH

The research study highlight the steps for success towards the FMCG market, which had led HUL to the top of the ladder. Many upcoming new players in the FMCG market can

utilize efficiently the study to effectively carry out their activities. It is also helpful to the company itself to know its success story and to recognize the unexplored market areas.

5.2 REFERENCES
Biblography

http://www.oppapers.com/essays/Hul-Strategy/161552 httpwww.businesswire.comnewshome201101190059654enResearch-Markets-

HFDC-INSURANCE-Market-Report-Updated

httpwww.sciencedaily.comreleases201104110412201713.htm www.hdfcinsurance.com http:// www.HDFC.co.in

Books Research Methodology textbook by C.R. KOTHARI

(chapter-3,Methodology of study, page number 52-87 ) Fundamentals of Life Insurance by Kaninika Mishra Marketing research by Naresh Malhotra

A Handbook on Postal Life Insurance by J.K.Bose Principles and Practices of Banking and Insurance Book by Mr V S Gopal

References
1 Advertising Express ICFAI Journal Jan 2006-Branding India. 2 The power of branding praxis-Business Liner Journal on Managment May 2005. 3 The future competition by prof Venkat Ramasave co-auther with CK. 4 Tan Jacqui(2004) ''opportunities,challenges and Innovation In marketing Consumer Goods to Rural India. 5 International marketing strategies in India by Prathap and micheal,Vikalpa(IIMA),oct-dec 2005. 6 Neeraj Jha ''Gung-ho on rural marketing The finanical Express June 19,2000. 2. Lewis B., (1991), Service Quality: An International Comparison of Bank Customers Expectations and Perceptions", Journal of Marketing Management, 7, pp. 47-62.

3. Sijun Wang, Lenita Davis (2008), Stemming the tide: dealing with the imbalance of customer relationship quality with the key contact employee versus with the firm, Journal of Services Marketing, 22/7, 533 549. 4. Parasuraman, (1998), Customer service in business-to-business markets: an agenda for research, Journal of business & industrial marketing vol. 13 No. 4/5, pp. 309-321. 5. Babakus E. and Boiler G.W., (1992), "An Empirical Assessment of the SERVQUAL Scale," Journal of Business Research, 24, May. 253- 268. 6. Bitner, M.J., (1990), Evaluating Service Encounters: The Effects of Physical Surroundings and Employee Responses, Journal of Marketing, 54, 69-82. 7. Carman J. M., (1990), Consumer Perceptions of Service Quality", An Assessment of the SERVQUAL Dimensions, Journal of Retailing, 66, Spring, 33-56. International Conference on Technology and Business Management March 28-30, 2011 1024 8. Carmen Camarero, (2007), Relationship orientation or service quality? What is the trigger ofperformance in financial and insurance services?, The International Journal of Bank Marketing Vol. 25 No. 6, pp. 406-426. 9. Dong Kyoon Yoo, Jeong Ah Park, (2007), Perceived service quality Analyzing relationships among employees, customers, and financial performance, International Journal of Quality & Reliability Management Vol. 24 No. 9, pp. 908-926. 10. Joseph, M., McClure, C. & Joseph, B. 1999. "Service quality in the banking sector: The impact of technology on service delivery", International Journal of Bank Marketing, 17(4), 182-191.

5.3 ANNEXURE

Questionnaire
NameAge.. Address.

Ques 1) Which of the brand is most preferred by the customer? A)For bathing soaps Lux Liril Dove

B)Detergents Surf Wheel Rin

C) Cosmetics Lakme Ponds Fair & Lovely

D)

Beverages Bru coffee

Taj Mahal Tea Tazaa Tea

Ques 2) Rate the distribution Process of the Company? Good Average Poor

Ques 3) Rate the Product Line of the company related to FMCG? Excellent Good Poor