Marketing Plan

TABLE OF CONTENTS

1. Terms of reference:................................................................................................................................................... 4

2. Executive Summary...................................................................................................................................................4

3. Mission and vision:....................................................................................................................................................5

3.1 Line of Business:...................................................................................................................................................... 5

3.2 Target Market:.......................................................................................................................................................... 5

3.3 Technology Used:.................................................................................................................................................... 7

4. External Marketing audit:.......................................................................................................................................7

4.1 Macro Business environment:...........................................................................................................................8

4.2 Micro Business environment:..........................................................................................................................10

5. Internal Marketing Audit:....................................................................................................................................12

5.1 Operating Results:................................................................................................................................................12

5.2 Strategic Issues Analysis....................................................................................................................................14

5.3 Marketing Mix effectiveness............................................................................................................................17

6. SWOT Analysis..........................................................................................................................................................20

7. Marketing Objective-Recommendations.......................................................................................................22

7.1 Strategic thrust...................................................................................................................................................... 23

7.2 Strategic Objectives..............................................................................................................................................24

8. Core Strategy............................................................................................................................................................. 24

9. Marketing Mix Decisions or Recommendations........................................................................................25

9.1 Product...................................................................................................................................................................... 25

9.2 Price............................................................................................................................................................................ 25

9.3 Place............................................................................................................................................................................ 26

9.4 Promotions.............................................................................................................................................................. 26

10. Budget........................................................................................................................................................................ 28

11. Organisation, implementation and control...............................................................................................29

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12. Reflexive account..................................................................................................................................................29

13. Reference …..…………………………………………………………………………………………………………….....32

14. Appendix A………………………………………………………………………………………………………………….33

15. Appendix B………………………………………………………………………………………………………………….35

16. Appendix C …………………………………………………………………………………………………………………38

17. Appendix D ………………………………………………………………………………………………………………...40

18. Appendix E………………………………………………………………………………………………………………….43

19. Appendix F………………………………………………………………………………………………………………….47

20. Appendix G………………………………………………………………………………………………………………….57

21. Appendix H…………………………………………………………………………………………………………………58

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MARKETING PLAN FOR HINDUSTAN UNILEVER LIMITED:-

GIANTS IN FMCG

1. TERMS OF REFERENCE:

Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods

company, with leadership in Home & Personal Care Products and Foods & Beverages.

HUL's brands, spread across 20 distinct consumer categories, touch the lives of two out of

three Indians. (Refer Appendix A).

The objective of this marketing plan is to provide a detailed formulation of the

necessary actions to carry out the marketing program. The marketing plan shall highlight

one of HUL’s strategic business units (SBU), its market share, competitors in that particular

segment, SWOT analysis, overview of external and internal marketing audit, application of

marketing mix and key strategic issues, recommendations, implementation of key strategies

and implications of these strategies on HUL’s market share.

2. EXECUTIVE SUMMARY

This report examines Hindustan Unilever Limited with main focus on Detergent segment

which is a major revenue generating segment. HUL has been the market leader for many

years in this segment. This report showcases macro and micro environment for HUL. There

is a huge market for detergents in India. HUL with the brand name it has, should cash in on

the situation. A marketing plan has been developed keeping in mind current trends in

consumer buying patterns. The marketing plan has been drawn upon by considering the

feedback from consumers as well. The report consists of PESTL analysis, information on

market segmentation, target market identification, competitor analysis, SWOT analysis, and

competitive advantage and core competencies of HUL as a company. Marketing mix

effectiveness of detergent segment of HUL has been discussed to achieve overall marketing

objective for the sales of HUL detergents by targeting the right people and offering them

with the improved range of products. New ways of promotions have been suggested. The

budget for the promotions has been arrived upon. Various channels have been chosen to 4

promote the detergents. New product launch is been suggested keeping in mind the

feedback received from the respondents of the survey.

The marketing plan is developed by accessing the primary and secondary data. The

prime objective of this report is to precisely analyze the current trends in detergent market

in India and develop a strategy for HUL to regain their sales volume share. Some

recommendations have been made to improve the way the products have to be promoted;

there should be a monthly review by the management of HUL to access the situation.

3. MISSION AND VISION:

HUL’s vision is to continue to be an environmentally responsible organization making continuous improvements in the management of the environmental impact of their Operations.

HUL strives to “Add vitality to Life”

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

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

the environment on which we have an impact."

Source: HUL (2010). http://www.hul.co.in/ [Accessed 11/05/2010]

3.1 LINE OF BUSINESS:

HUL is India's largest fast moving consumer goods company, with leadership in Home &

Personal Care Products and Foods & Beverages. HUL's brands are spread across 20 distinct

consumer categories which touch the lives of two out of three Indians.

3.2 TARGET MARKET:

As stated earlier, this write up will focus on a SBU of HUL.

The SBU in purview is Detergents. The brands to be discussed are Surf Excel Quick Wash,

Surf Excel Blue, Surf Excel Automatic, Rin Advance, and Wheel Regular. The target 5

market is women in India. Buying power is middle. It is a volume market hence customer is

price sensitive.

Figure 3.1 Per Capita Consumption of Detergents (US $ )

Source:Euromonitor 2009

Table 3.1 Segmentation of Detergent Powder Market

Premium Mid-Priced Mass Market

Surf Automatic-Front Load Surf Excel Blue Wheel Regular

Surf Automatic- Top Load Surf Excel Quick Wash Rin Advance

Ariel Tide Nirma

Amway Henko Ghari

Source: Created by Sharath Shyamasunder (2010)

6

3.3 TECHNOLOGY USED:

In India, laundry detergent Surf Excel is used mostly for hand washing. When washing

clothes by hand, it’s rinsing that often takes most time and uses most water.

Understanding the problem

Surf Excel is improved so that less rinsing is needed, while still getting clothes as clean as

before. People keep rinsing in water till the lather is gone completely, so to cut the number

of rinses by adding one of a number of anti-foam ingredients commonly used in machine-

washing detergents. That would make the lather rinse more quickly. But Surf Excel Quick

Wash can deliver a good lather at the washing stage, and reduce the need for the rinsing –

saving two bucketfuls of water per wash.

Source: How Surf excel works? (2010) http://surfexcel.in/Product-Range/Surf-Excel-

Quickwash.aspx [Accessed 25/05/2010]

4. EXTERNAL MARKETING AUDIT:

Marketing audit according to (Jobber, 2010) is “A systematic examination of a business’s

marketing environment, objectives, strategies and activities.

External Marketing Audit is concerned with those factors over which the organization

has no control. It can be classified into Macro environment and Microenvironment.

Source: Jobber.D (2010) Principles and Practice of Marketing. McGraw-Hill

education

7

http://surfexcel.in/Product-Range/Surf-Excel-Quickwash.aspx


4.1 MACRO BUSINESS ENVIRONMENT:

Table 4.1 PESTL Analysis

Political/Legal:

Indian government’s policies of

lifting of the quantitative restrictions,

reduction in excise duties and

automatic foreign investment has

fostered HUL’s growth.

Removal of the regulatory

framework has allowed HUL to

explore every product and segment,

without constraints on production

capacity.

Center for Monitoring Indian

Economy (2010).

http://www.cmie.com/ [Accessed

12/05/2010]

Economic:

Detergents segment of HUL has about 36%

market share in that segment (FY 08-09). This

segment accounts for at least 40% of the total

revenue. HUL’s market share in detergents

segment has declined in the last two years, due to

heavy competition.

An increase is spending pattern has been

witnessed in Indian FMCG market especially in

the detergent market.

Center for Monitoring Indian Economy

(2010). http://www.cmie.com/ [Accessed

12/05/2010]

Financial Times (2010) http://www.ft.com/

[Accessed on 13/05/2010]

8

http://www.ft.com/

Ecological/Physical environment:

HUL has contributed significantly in

saving water through technology.

Educating people on Rain water

harvesting, soil conservation and

reduction of greenhouse gases.

A carbon reduction supply-chain

project has enabled (HUL) to be

awarded carbon credits.

(Refer Appendix C for information

on Corporate social

responsibilities)

Annual report 2008-09 HUL.

http://www.hul.co.in/ [Accessed

13/05/2010]

Social/Cultural:

The size of the detergent market in India is

estimated to at Rs.12, 000 Crores. Detergent

segment is characterized by high degree of

competition and high level of penetration. With

rapid urbanization in India, emergence of small

pack size and sachets, the demand for the

detergents is flourishing. With the use of hard

water for washing and scarcity of water it is

imperative that HUL produces products that suit

the water type in India.

Technological:

HUL has research centers in Bangalore and Mumbai which has more than 200 scientists

and technologists. Addressing the washing needs of consumers is a key challenge for the

laundry Research group. How to minimize water usage while washing? How to impart

stain repellent treatment to garments? These are the questions which have been answered

by HUL R&D team.

Research and Development 2010 HUL.

http://www.hul.co.in/careers-redesign/carreerschoices/researchanddevelopment/

[accessed 13/05/2010]

9


(Refer Appendix B for more information on Macro Environment)

4.2 MICRO BUSINESS ENVIRONMENT:

Microenvironment as according to (Jobber, 2010) consists of factors in the firm’s

immediate environment which affects its capabilities to operate effectively.

The useful framework that can be utilized when undertaking this analysis is Porter’s ‘Five

forces’ model. This analysis is carried out at the level of Detergent SBU of HUL.

Figure 4.1 The Five Forces model (Source: Adapted from Porter 1980)

Suppliers:

HUL has a very strong supplier base. Supplier power is considerable in case of detergent

segment of HUL as there is a lot of costing involved when switching suppliers. As HUL

10

Suppliers Competitive

Rivalry

Potential

Entrants

Buyers

Substitutes

provides a large amount of its business to the suppliers, these suppliers are beholden to

HUL. As said earlier, the supply power is limited.

Potential Entrants:

Given the capital investment required to enter the detergent market in India, with the

pricing of the products being very low, threat of potential entrants is low. With a lot of local

brands in the market and names like Nirma, P&G, the detergent market has become

extremely competitive and crowded. For the new entrant to position its products on the

shelves of retailers alongside Surf Excel, Rin, Henko and Rin would be a real challenge.

Buyers:

Buying power of retailers of HUL when it comes to detergent market is very high as they

are able to negotiate on price. Buying power of consumers is low as the consumers are

fragmented and they do not have a great influence on the price as well as the product.

Buyer loyalty is considerably less when it comes to Mass market detergents, as the

consumers of that segment are price sensitive. Consumers in the premium and mid priced

segment are very loyal to the brand.

Substitutes:

There is a strong threat from substitutes from the local market especially in the rural

market. Even though within the detergent market, brand succeeds in building up a

competitive market the threats from substitutes are high such that the pricing power of HUL

brands are eroded. Government regulations for local brands are very conducive to set up the

business in India.

For e.g. Local detergent brands like Ghari, RMC, etc.

Competitive Rivalry:

Consumers of detergents have enormous amount of choices. The brand loyalty in detergent

segment is very poor. Price wars among competitors of HUL like P&G, Nirma is fierce.

(Refer Appendix C).The competitive rivalry in the detergent segment is very high. Price

11

wars are regular affairs which is beneficial from a customer perspective. Due to this the

companies are forced to bring down their operational costs to survive in this hostile

atmosphere.

Figure 4.2: Indian Detergent Market

Source: Russel Davis, Nirma 2007-08.

5. INTERNAL MARKETING AUDIT:

Internal Marketing Audit is concerned with those factors over which the organization has

control.

Source: Jobber.D (2010) Principles and Practice of Marketing. McGraw-Hill

education

5.1 OPERATING RESULTS:

HUL is India's largest Fast Moving Consumer Goods Company, touching the lives of two

out of three Indians. Detergent segment in HUL accounts for 48% of the total

turnover.15, 28,391 tonnes of synthetic detergents were sold by HUL during January

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2008- March 2009.The total sales value of detergents according to the annual report of

HUL is 4908.46 Cr INR. Market share of HUL detergents is 36% as per annual report

of HUL 2009.

Figure 5.1 Sales value of various divisions of HUL from the period of Jan-08 to Mar-09.

Source: Annual report 2008-09 HUL. http://www.hul.co.in/ [Accessed on 1305/2010]

Figure 5.2 Share value of HUL

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Source: http://money.rediff.com/companies/hindustan-unilever-ltd/12520002

[Accessed on 01/07/2010]

5.2 STRATEGIC ISSUES ANALYSIS

HUL’s current marketing objective is to improve the market share, which has gone down in

the last two years through high marketing spend and bringing down the packaging cost of

detergents.

4.2.1 Marketing segmentation

Marketing segmentation as stated by (Ferrell, O.C and Hartline, D. 2007) is the process of

dividing the total market for a particular product or product category into relatively

homogenous segments.

In the discussion that follows, we look more closely at segmentation in detergent markets

by examining the different factors that can be used to divide the market. As table 4.1

illustrates, these factors fall into one of these categories: Behavioral segmentation,

Demographic segmentation, Psychographic segmentation and Geographic segmentation.

(Refer Appendix D)

14

http://money.rediff.com/companies/hindustan-unilever-ltd/12520002

Table 5.1 Common segmentation variables used in Consumer markets.

Category Variables Examples

Behavioral segmentation

Benefits sought Quality, Value, Convenience,

Product usageHeavy , Medium and Light, Non users

Occasions / Situations Daily use

Price sensitivePrice sensitive, Value conscious, Status conscious

Demographic segmentation

Age 18-60Gender Male/Female

IncomeLow income, Mid income, High income

Occupation

White collared, technical, Professional, Managers, Laborers, Homemakers, Retired, Unemployed

EducationHigh school, College graduate, Graduate

Social classUpper class, Middle class, Lower class, Poverty level

Generation Generation Y,X Baby boomers, Laggards

Psychographic segmentation

Personality

Outgoing, Shy, Materialistic, Anxious, Civic minded, Venturesome

LifestyleOutdoor Enthusiast, Homely, Workaholic, Family centered

Motives Cleaning Geographic segmentation

Regional North, South, East, WestPopulation Urban, Sub urban ,Rural

15

Source: Hartline, D and Ferrell, O.C (2007) Marketing Strategy. Thomson South-Western

5.2.2 Competitive Advantage:

HUL’s Competitive advantage lies in its strong and efficient distribution network. Its

culture to continuously innovate for product betterment keeps them ahead of competition.

Their high markets spend that enables their products gets a greater reach. HUL operates at

zero working capital. The key is constant efforts to reduce capital investments by

outsourcing manufacturing, streamlining supply chains and paying close attention to

distributor’s performance*. Developing new channels like Rural marketing (for eg. Shakthi

Ammas) and direct selling. Most importantly their products are low priced and good value

for money and strong commitment towards improving the community. (For further

information refer Appendix E).

* Prahalad, C.K and Hammond, A, (2002) Serving the World’s poor, Profitability,

Harvard Business review.

5.2.3 Core competencies

HUL has a wide range of quality products designed to meet the needs of the consumers. It

has country wide reputation and presence. All their detergents are conservatively priced.

They have an innovative style and low cost packaging. HUL has an excellent distribution

network which enables greater reach. Their main focus on providing value to customers

through continuous product innovation and to be known as socially responsible company.

HUL has a very good brand name in the market which they have used to their advantage to

maintain their market share.

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5.2.4 Product Life cycle

Figure 5.3 Product life cycle of HUL


HUL detergents are in between the growth and maturity stage. The marketing mix elements

have been planned keeping the product life cycle in mind. Detergent features should be

such that it is differentiated from the rest of the competition. Pricing should be lower

because of intense competition. The distribution channels needs to be very effective with

investment on IT, so as to increase the efficiency. Promotions are aimed at a larger target

audience with focus on product differentiation. With right promotions in the right place,

HUL can reap the benefits.

5.3 MARKETING MIX EFFECTIVENESS

5.3.1 Product:

17

Current products offered by HUL (Detergent segment) are Surf Excel Automatic

exclusively for washing machines, Surf Excel Blue, Rin Advance, and Wheel Regular.

Table 5.2 Segmentation of detergents offered by HUL

Premium Mid-Priced Mass Market

Surf Automatic-Front Load Surf Excel Blue Wheel Regular

Surf Automatic- Top Load Surf Excel Quick Wash Rin Advance

Products are designed keeping in mind the nature of water in India and the scarcity

of it. New technology wherein less water is consumed while washing clothes makes HUL

products fare better. Detergents have micro granules which can penetrate into the fabric

easily and remove the dirt and stains easily. They are available in small sachets also.

Currently a lot of promotions are splashed in the media to educate the audience about the

products.

5.3.3 Place

HUL products are made easily available through the efficient distribution system. The

detergents are available in the Local grocery stores, Super markets and there is a door to

door sale. (Refer Appendix E)

Figure 5.4 Segmentation of detergents offered by HUL

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5.3.2 Pricing

The following are the prices of few detergents in India.

Table 5.3 Prices of detergents in rupees

Detergent Brands 500 gm 1 kg 2 kgSurf Excel Quick wash 70 130 260 Surf Excel Automatic 82 164 320 Rin Advanced 28 55 125 Wheel Regular 20 38 72 Tide Naturals 35 70 135 Nirma 45 87 165 Henko 48 90 169 Ariel 78 152 300


5.3.4 Promotions

19

Table 5.4 Various channels through which HUL promotes its detergents Print Media- HUL advertises in leading dailies like Times of India and Indian express which has a wide reach.

Television-Advertisements of Detergents are aired in prime time to get the attention of women.

Demo campaigns- Demo campaigns are done regularly with sales people going to household and give a demo to the consumers so that the consumers can have a firsthand experience and they believe what they see.

Hoardings- Hoarding advertisements are done usually during a new product launch or a reduction in price. For e.g. when the prices of Surf excel was cut by 5%, huge hoardings were put in prominent places across all cities.

Live shows-TV shows like “Wheel Shrimati” which is aired in prime time on National channel, the target audience being women was well received.

Radio- Radio Jingles are aired which promote detergents.

Internet-Online promotions are conducted regularly on respective detergents websites.

Rural Marketing- Rural campaigns such as “Shakthi Amma” have enabled HUL to get such deep penetration into the rural market.

6. SWOT ANALYSIS

SWOT analysis as stated by (Baker, 1995) is “a summary of the audit under the headings of

internal strengths and weaknesses as they relate to external opportunities and threats”.

Figure 6.1 SWOT analysis

Strengths

Presence of established distribution networks in both urban and rural areas

Attractive packaging and available in small quantities

High brand value

High spend on product innovation

Weakness

Focus on building a power brand so priced higher than others and neglecting other brands

Gave unwanted publicity to Tide in the ad war between Rin and Tide

Sticking to old strategies for long time

20

Opportunities

Large Consumer base

Forecast of Detergent market to grow in India

Per capita consumption is High

High consumer goods spending

Threats

Emergence of Rural brands which are cheaper

Imitation or Me-Too versions of detergents

Price reduction by competitors

Strengths:

One of the major strengths of HUL is its distribution network, which has foot print even in

the rural areas. Their reach makes them the market leader in FMCG. The brand value of

HUL products is very high so its keeps them ahead of competition. The need for product

improvement and innovation is the main agenda of HUL which augurs well for the future.

HUL has been continuously able to grow at a rate more than growth rate for FMCG Sector,

thereby reaffirming its future stronghold in Indian market.

Weakness:

HUL’s extensive reach and country wide presence enabled them to rise the prices of the

detergents even though the raw material prices were decreasing. This has allowed HUL to

gain more profits but the volume came down, this allowed a lot of competitors to grow.

HUL was backing its power brands with an idea to earn high revenues. HUL's weakness

was its inability to transform its strategies at the right time. They continued with the same

old strategy which helped HUL gain profits but was not genuine in this changing

environment. The competition has put HUL on the defensive mode.

Opportunities:

21

HUL has a large customer base; people who do not use HUL’s detergents but use other

HUL products can be influenced to use HUL detergents. According to the forecasting done

the detergent market is expected to grow by double digit. The per capita consumption of

detergents in India is pretty high. The buying patterns of consumers for detergent segment

have been changing which again augurs well for HUL.

Threats:

Strong backing of Power brands by HUL and the continuation of old strategy which helped

HUL to gain in revenues created opportunities for its competitors to grow. This situation

created avenues for Local detergent manufacturers to enter the market with cheap

detergents. Lot of imitation or me-too products gained popularity at the expense of HUL.

Government regulations have been relaxed which has helped the rural players to set up their

business and they now pose a threat to HUL. The price war among HUL and its

competitors has intensified and this has made HUL to cut down the prices of detergents.

The market share and the sales volume has been affected due to the entry of local players.

7. MARKETING OBJECTIVE-RECOMMENDATIONS

For the Marketing objective to be set, we shall consider Strategic Thrust and strategic

Objective. The planning phase of strategic marketing phase consists of (1) Situation

Analysis (2) Market product focus and goal setting (3) Marketing program.

Figure 7.1 the strategic marketing process

Marketing plan

22

Market focus and Goal setting

Set market and product goals

Select target markets

Position the product

Marketing program

Develop the marketing mix

Develop the budget, by estimating the revenues, expenses and profits

Implementation phase

Obtain resources

Design marketing organization

Develop schedules

Execute marketing Program

SWOT

Identify industry standards

Analyze competition

Look for potential Markets

Results

Control Phase

Source: Kerin, A. R et al (2008) Marketing the Core, McGraw Hill-Irwin

7.1 STRATEGIC THRUST

Strategic thrust defines which products to sell in which markets.HUL will go for existing

product in the existing markets as they are doing well. There has to be a reduction in the

prices as there is stiff competition. They can diversify their product range into liquid

detergent, and then HUL will have a complete range of products for fabric care.

Figure 7.2 Ansoff Matrix

PRODUCTS

MA

RK

ET

S

Existing New

Exi

stin

g

Market Penetration New Product Development

Quality products for Washing

machines

Design detergents specially for woollen

clothes

Recution in Prices Design detergents specially for color clothing

Customer focus Develop an Insta-whitening system

23

Control phase

Compare results with plans to identify deviations

Act to correct negative deviations; exploit positive ones

New

Market Development Diversification

Develop a market in Liquid

detergent segment

Diversify the products into liquid detergent

segment

Conduct demonstrations to

observe the needs of Customer

and educate them on the products

Created by Sharath Shyamasunder (2010)

7.2 STRATEGIC OBJECTIVES

Figure 7.3 Strategic objectives for HUL detergent division

Build

Invest of new product development like Liquid detergents

Invest on product innovation

Hold

Selective investment on new methods of packaging

Harvest

HUL has traditionally followed the Harvest method, wherein more emphasis was on maximizing profit margins, sales and market share was allowed to fall

Divest

Non performing brands such as Breeze is dropped from the Indian market

8. CORE STRATEGY

24

Competitors of HUL in detergent segment are P&G, Nirma, Ghari, 555 etc. HUL initially

had a strategy of increasing profit margins so the detergents were priced high when

compared to the competition. The sales volume and the market share were affected due to

this. The strategy now employed by HUL is that the detergents are priced on par with the

competition and the advertisement expense has been increased by 66% when compared to

2008.

HUL is targeting its competitor’s brands and is engaged in a price war to gain the

market share. For e.g 30% cut in the price of Rin as Wheel had reduced the price. The Ad

wars between Surf Excel and Tide, where HUL compared the two brands in terms of the

content and the effectiveness.

The competitive advantage which HUL has over its competitors is that they have an

excellent distribution network. They have the brand name which has a country wide

presence. Their penetration in rural areas cannot be matched by its competitors. Their

continuous spend on R & D will help to build their product portfolio. The image that HUL

as a socially responsible company goes down well with the public.

9. MARKETING MIX DECISIONS OR RECOMMENDATIONS

9.1 PRODUCT

HUL can go with their existing range of detergents are they are doing well in terms

of sales volumes. Their market share although has decreased, with the reduction in prices.

An effort is there to get the production cost down by having pared down the color palette

used for printing across many products. The system has been used to reduce printed

packaging costs. Some non performing brands like Breeze should be shelved out.

According to the survey results (Refer Appendix F) Surf excel is the most widely

used detergent in its segment. The need to have a good fragrance in the detergents is

emphasized. An Insta- whitener and liquid detergent market can be entered as per the

feedback got from the survey.

25

9.2 PRICE

The prices of all the detergents of HUL have been reduced considerably to compete

with the competitors. For e.g. 30% Price reduction in Rin and 20% price reduction in Surf

excel they hope to get back that market share. If the production cost is reduced then the

price of the detergents will come down. An effort to reduce the cost has to be a top

priority.“Zero inventory” and “Go to the market” initiative to reduce cost and increase

efficiency.

(More information in Appendix G)

Source: Sangani, P. Economic Times (2009), The Zero Effect Pg no 3.Available at

www. hul .co.in/mediacentre/MediaCoverage/ [Accessed on 15/05/2010]

9.3 PLACE

The distribution network of HUL is one of the best in this industry. Efforts must be taken to

use technology like SAP which help in managing the distribution effectively. Some of the

benefits of SAP are

• Streamlined business operations

• Improved information sharing with partners even if they are not using SAP’s

solutions

• Increased supply chain efficiency through process-centric collaboration across the

Enterprise—internally and externally

• Enhanced value of legacy system

Source: Success stories of SAP

www.sap.com/india/about/company/successes/pdfs/ HUL .pdf [Accessed on 20/05/2010

(More Information in Appendix H)

26

http://www.sap.com/india/about/company/successes/pdfs/HUL.pdf

http://www.hul.co.in/mediacentre/MediaCoverage/

Introduction of Exclusive shelves of HUL products in Supermarkets wherein only HUL

products are displayed together. This will enhance the shopping experience of the consumer

and there will be no conflicts of brands.

9.4 PROMOTIONS

Great advertising is inspired by insights about brands, consumers, and how the two interact.

It starts with a problem from the client and ends with a solution to the customers.

As seen from the survey, many people do not identify HUL products and are not

aware of the features of specific products, so an effort to educate the customer through

promotions must be taken.

Creativity defined

Creative ads make a relevant connection between the brand and its target audience and

present a selling idea in an unexpected way. Creative ads present a selling idea.

Media

When and where a message runs can be as creative as the words and visuals. Everyday

items have become media vehicles. HUL can promote its line of detergents on dress

hangers in trains and buses frequented by women. The hangers can come with a message

“Want your dress to be bright and clean use Surf Excel/ Rin/ Wheel”*.

Source: Jeweler. A and Drewniany .L (2008) Creative strategy in Advertising. Lyn

Uhl

27

10. BUDGET

Figure 10.1 Promotional activities to be undertaken by HUL to regain market share

Promotional

activities

Description Budget in

Lakhs

(INR)

% of total

Budget for

Promotions

Television Advertisements in channels like Star

and Zee TV between 7.PM and

10.PM to reach the women who are

the target audience

89450 35

Newspapers Advertisement and promotions in

major dailies like Times of India and

Indian Express as they carry out

exclusive sections for women

38356 15

Mass media

campaigns and

creative ads

“Daag accha hai” type of campaigns

which catch the eye of the viewer

and the hanger promotion*

25570 10

TV shows Sponsoring TV shows where women 38356 15

28

sponsorship are the main focus

Radio Radio jingles should be aired which

should have catchy phrases

12785 5

Internet Till date Internet marketing or

Internet sales of detergents have not

been implemented in a big way, if

HUL can do it they can have a early

entrant advantage

12785 5

Demonstrations Demonstrations in supermarkets

with some contests and offers should

be carried out regularly.

38356 15

According to annual report of HUL 2009, the budget for sales promotion for the

year 2009-10 would be 2,55,658 lakhs INR. I would recommend the amount to spend as

shown in the table.

Source: Annual report 2008-09 HUL. http://www.hul.co.in/ [Accessed 13/05/2010]

11. ORGANISATION, IMPLEMENTATION AND CONTROL

The changing environment, the fierce competition faced by HUL in the detergent

segment calls for a marketing plan with a long term vision and in accordance with the

company’s objectives. The marketing plan formulated above is of such nature and needs the

support of the management. The marketing team of HUL has to take full responsibility of

implementing the marketing plan with the support of the management. The management

should define the roles of people involved in carrying out the marketing plan. The budget

needs to be allocated for the promotional activities and the marketing team should be

accountable for the utilization of the funds. Reviews by the management should be an

integral part of the implementation process.

Control is required to take corrective actions from the feedback received from the

market. Reviews by the management should happen regularly regarding the sales growth,

29

expenses, R & D, feedback from the customers. The progress of the marketing plan should

be closely monitored by the Business Manager of the detergent department.

12. REFLEXIVE ACCOUNT

The reason for choosing Hindustan Unilever Limited for this report is because of

the fact that HUL touches almost every Indian’s life. I, myself have used most of the

products of HUL and I am a very satisfied and a loyal customer of HUL products.

Moreover the market for FMCG in India is set to grow in the years to come. HUL being the

brand it is should take stock of the situation and prepare for the growth. Working on this

report has been very enriching for me in terms of knowledge, and I have derived immense

pleasure in researching on HUL. The response for my questionnaire was very encouraging

and HUL products have got an excellent feedback.

Problematic Areas in Research

HUL is such a big brand that it is one of the most discussed companies in

Management studies, so when I started researching about HUL, i was a little skeptical about

choosing HUL. But later I realized I could contribute a new perspective to the HUL

marketing plan. Although the response to the survey was encouraging, it took constant

follow ups with the respondents. Compiling the responses was very time consuming and a

tedious process. The reason that I started early on the project helped me, as i never faced a

time crunch. Since HUL is a listed company in India and is one of the most discussed

company, huge chunks of data was available on the internet like the annual reports,

newspaper articles, Case studies. To go through them, understand the write ups and

precisely use the information in the report was a very challenging task.

What went right?

As stated earlier since HUL is a listed company in India getting relevant data like

Annual reports very relatively easier, compiling these data and arriving at PESTL analysis

was easier. By speaking to few friends who work for HUL in different departments and

understanding the work culture, marketing initiatives was very useful experience and this

30

has helped me to present certain facsssts with more depth. Based on the product life cycle

and the macro and micro environments the marketing mix decisions and SWOT has been

derived.

Role of Marketer

Being in a Sales and marketing position for over two years has helped me visualize

the plan with relative ease. Since marketing is the most important aspect of business as it

has a direct impact on the company’s profitability and sales, role of the marketer is very

challenging. It requires constant interaction with customers as well people within the

organization. Collecting the information from the customers and compiling the data in a

way most suitable for the people concerned in the organization for e.g. R&D department is

a vital function of a marketer.

One of the things which have changed over the years is the perception of people that

a company is not just a seller of products but also have responsibility to be more socially

responsible. Being socially responsible means an organization shows concern for the people

and environment in which it transacts business. It also means that these values are

communicated and enforced by everyone in the organization. In addition to insuring these

values exist within the organization and its business partners, social responsibility may also

manifest itself in the support of social causes that help society. For instance, marketers may

sponsor charity events or produce cause-related advertising.

Marketers who are pursuing a socially responsible agenda should bear in mind that

such efforts do not automatically translate into increased revenue or even an improved

public image. However, organizations that consistently exhibit socially responsible

tendencies may eventually gain a strong reputation that could pay dividends in the form of

increased customer loyalty.

Source: Social responsibility in Marketing (2010)

http://www.knowthis.com/principles-of-marketing-tutorials/what-is-marketing/social-

responsibility-in-marketing/ [Accessed on 13/06/2010]

31

http://www.knowthis.com/principles-of-marketing-tutorials/what-is-marketing/social-responsibility-in-marketing/


REFERENCE

Drummond, G and Ensor, J (2005) Marketing Concepts. Butterworth-Heinemann

Ltd

Hartline, D and Ferrell, O.C (2007) Marketing Strategy. Thomson South-Western

Jeweler. A and Drewniany .L (2008) Creative strategy in Advertising. Lyn

Jobber David (2010) Principles and Practice of Marketing. McGraw-Hill education

Kerin A.Roger et al (2008) Marketing the Core. McGraw Hill-Irwin

Michael J. Baker (1995) the Marketing Book. Butterworth-Heinemann Ltd

Porter, M.E. (1980) Competitive Strategy. The Free Press, p.4.

Prahalad, C.K and Hammond, A, (2002) Serving the World’s poor, Profitability.

Harvard Business review.

Sangani, P. Economic Times (2009), The Zero Effect Pg no 3.

Journals

Journal-Source: Anandan, C. (2007) A Study on Brand Preferences of Washing

Soaps in Rural Areas, vol. 37,pp.3

32

Websites

HUL (2010). http://www.hul.co.in/

How Surf excel works? (2010) http://surfexcel.in/Product-Range/Surf-Excel-

Quickwash.aspx

Center for Monitoring Indian Economy (2010). http://www.cmie.com/

Success stories of SAP

www.sap.com/india/about/company/successes/pdfs/ HUL .pdf

Social responsibility in Marketing (2010) http://www.knowthis.com/principles-of-

marketing-tutorials/what-is-marketing/social-responsibility-in-marketing/

APPENDIX A

ABOUT HINDUSTAN UNILEVER LIMITED

Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods

company, with leadership in Home & Personal Care Products and Foods & Beverages.

HUL's brands, spread across 20 distinct consumer categories, touch the lives of two out of

three Indians. They endow the company with a scale of combined volumes of about 4

million tonnes and sales of Rs.13, 913 crores.

The mission that inspires HUL's over 15,000 employees is to "add vitality to life". With 35

Power Brands, HUL meets every day needs for nutrition, hygiene, and personal care with

brands that help people feel good, look good and get more out of life. It is a mission HUL

shares with its parent company, Unilever, which holds 52.10% of the equity. A Fortune 500

transnational, Unilever sells Foods and Home and Personal Care brands in about 100

countries worldwide.

CEO: Mr.Nitin Paranjpe

Group Turnover of 13913.4028 Cr. And profit of INR 1914.8897 Cr.

33




http://www.cmie.com/



http://www.hul.co.in/

Average Market Capitalization for the last 4 years is INR 56000 Cr.

Soap & Detergent Division contributes INR 6374.5265 Cr.

OVER 100 YEARS LINK WITH INDIA

YEAR MILESTONES

1888 Sunlight soap introduced in India.

1895 Lifebuoy soap launched; Lever Brothers appoints agents in Mumbai, Chennai,

Kolkata, and Karachi.

1902 Pears soap introduced in India.

1905 Lux flakes introduced.

1914 Vinolia soap launched in India.

1922 Rinso soap powder introduced.

1937 Mr. Prakash Tandon, one of the first Indian covenanted managers, joins HVM.

65% of managers are Indians.

1956 Three companies merge to form Hindustan Unilever Limited, with 10% Indian equity

participation.

1958 Research Unit starts functioning at Mumbai Factory.

1959 Surf launched.

1961 Mr. Prakash Tandon takes over as the first Indian Chairman; 191 of the 205 managers

are Indians.

1967 Hindustan Unilever Research Centre, opens in Mumbai.

1969 Rin bar launched; Fine Chemicals Unit starts production; Bru coffee launched

1977 Jammu synthetic Detergents plant inaugurated; Indian shareholding increases to

18.57%.

1982 Government allows 51% Unilever shareholding.

1991 Surf Ultra detergent launched.

1995 HUL and Indian cosmetics major, Lakme Ltd., form 50:50 joint venture- Lakme

Lever Ltd.; HUL enters branded staples business with salt; HUL recognised as Super Star

Trading House.

34

1997 Unilever sets up International Research Laboratory in Bangalore; new Regional

Innovation Centres also come up.

2005 Launch of "Pureit" water purifiers

2007 Company name formally changed to Hindustan Unilever Limited after receiving the

approval of share holders during the 74th AGM on 18 May 2007

Sales of Brooke Bond and Surf Excel each cross the Rs 1,000 crore mark

2008 HUL completes 75 years on 17th October 2008.

Source: Annual report 2008-09 HUL. http://www.hul.co.in/ [Accessed 13/05/2010]

APPENDIX B

POLITICAL/LEGAL:

Indian Government has enacted policies aimed at attaining international competitiveness

through lifting of the quantitative restrictions, reducing excise duties, automatic foreign

investment and food laws resulting in an environment that fosters growth in the FMCG

segment. This initiative has helped HUL in a big way to get a lot of foreign brands into the

country. The consumers are in a position to use and appreciate HUL products at an

attractive price. The liberalisation of the Indian economy, started in 1991, clearly marked

an inflexion in HUL's and the Group's growth curve. Removal of the regulatory framework

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

constraints on production capacity.

Source: Center for Monitoring Indian Economy (2010). http://www.cmie.com/

[Accessed 12/05/2010]

ECONOMIC:

35

HUL is the India’s largest FMCG player. It creates employment for more than 18 thousand

people. Its principal constituents are Household Care, Personal Care and Food &

Beverages. Detergents segment of HUL has about 36% market share in that segment (FY

08-09). This segment accounts for at least 40% of the total revenue. HUL’s market share in

detergents segment has declined in the last two years, due to heavy competition on the price

front from other players like P&G, Nirma, Ghari and other local players. But the positive is

that the volumes grew by 4% in the last quarter. An increase is spending pattern has been

witnessed in Indian FMCG market especially the detergent market. There is an upward

trend in urban as well as rural market. An increase in disposable income, of household

mainly because of increase in nuclear family where both the husband and wife are earning,

has lead to growth rate in FMCG goods.

Source: Center for Monitoring Indian Economy (2010). http://www.cmie.com/

[Accessed 12/05/2010]

Financial Times (2010) http://www.ft.com/ [Accessed on 13/05/2010]

ECOLOGICAL/PHYSICAL ENVIRONMENT:

HUL’s significant contribution in saving water through technology is highly appreciated by

the Government of India. HUL is striving hard to educate people on aspects of reduction of

greenhouse gases. Serving the communities has been integral to HUL’s business conduct.

Rainwater harvesting and soil conservation projects around their factories have made

significant impact in these regions. HUL has planned to come up with bio-degradable

covers for their detergent brands. HUL is working to promote environmental care, increase

understanding of environmental issues and disseminate good practice. A carbon reduction

supply-chain project has enabled Hindustan Unilever Limited (HUL) to become the first

Unilever business worldwide to be awarded carbon credits under the Clean Development

Mechanism (CDM) scheme.

Source: Annual report 2008 HUL. http://www.hul.co.in/ [Accessed 13/05/2010]

36

http://www.ft.com/

SOCIAL/CULTURAL:

The size of the detergent market in India is estimated to at Rs.12, 000

Crores. Detergent segment is characterized by high degree of competition

and high level of penetration. With rapid urbanization in India, emergence

of small pack size and sachets, the demand for the detergents is

flourishing.HUL has a major share in this market.

TECHNOLOGICAL:

HUL has research centers in Bangalore and Mumbai which has more than 200 scientists

and technologists. HUL R&D is the hub for the best minds. Addressing the washing needs

of consumers is a key challenge for the laundry Research group. How to minimize water

usage while washing? How to impart stain repellent treatment to garments? These are the

questions which have been answered by HUL R&D team. By adding one of a number of

anti-foam ingredients commonly used in machine-washing detergents, lather is reduced

while rinsing the clothes thus reducing the water consumption by 50%.HUL detergents

penetrate deep down into fabrics and removes dirt. HUL has separate detergents for TOP

loading and FRONT loading washing machines keeping in mind the washing patterns of

both the machines.

Source: Research and Development 2010 HUL. http://www.hul.co.in/careers-redesign/carreerschoices/researchanddevelopment/ [accessed 13/05/2010]

CORPORATE RESPONSIBILITIES

The Board and the Management Committee of HUL is committed to conduct the company

operations in an environmentally sound manner. The Management Committee will:

Set mandatory standards and establish environmental improvement objectives and

targets for HUL as a whole and for individual units, and ensure these are included in

the annual operating plans.

37


Formally review environment performance of the company once every quarter.

Review environment performance when visiting units and recognise exemplary

performance.

Nominate:

The Management Committee, through the nominated environmental coordinator

will:

Ensure implementation of HUL Policy on environment and compliance with

Unilever and HUL environmental standards and the standards stipulated under

relevant national / local legislation. When believed to be appropriate, apply more

stringent criteria than those required by law.

Assess environmental impact of HUL operations and establish strategies for sound

environment management and key implementation steps.

Encourage development of inherently safer and cleaner manufacturing processes to

further raise the standards of environment performance.

Establish appropriate management systems for environment management and

ensure regular auditing to verify compliance.

Establish systems for appropriate training in implementation of Environment

Management Systems at work.

Ensure that all employees are made aware of individual and collective

responsibilities towards environment.

Arrange for expert advice on all aspects of environment management.

Participate, wherever possible, with appropriate industry and Government bodies

advising on environmental legislation and interact with national and local

authorities concerned with protection of environment.

Source: Making a difference 2010 HUL.

http://www.hul.co.in/sustainability/MakingaDifference/ [Accessed 21/05/2010]

38

http://www.hul.co.in/sustainability/MakingaDifference/%20%5BAccessed

APPENDIX C

COMPETITOR ANALYSIS

Description HUL P&G Nirma

Strengths

Strong distribution network

Moderate distribution network

Moderate distribution network

High spends on Advertisements

High spends on advertising

Low spend on Advertising

High Brand value Decent brand value High brand value

High spends on product development and innovation

Moderate spends on product development and innovation

Moderate spends on product development and innovation

High on CSR High on CSR Low on CSR

Weakness

Focus on building a power brand and neglecting other brands

Distribution network not efficient

Distribution network not efficient

Sticking to old strategies for long time

Do not have a country wide presence

Nirma never projected itself as a Power brand

Not enough advertising

Opportunities

Large Consumer base

Large Consumer base

Large Consumer base

39









Nirma is still in the minds of generation X, Y

Price war between competitors



ThreatsImitation and me too products

Imitation and me too products

Entry of local brands


APPENDIX D

COMMON SEGMENTATION VARIABLES FOR DETERGENTS OF

HUL

HUL product Category Variables Examples

Surf

Exc

el


Benefits sought Quality, Value, Convenience, Product usage Heavy , Medium and Light, Occasions or Situations Daily use/Weekly

Price sensitive Value conscious, Status conscious


Age 18-60Gender Male/FemaleIncome Mid income, High income

Occupation

White collared, technical, Professional, Managers, Laborers, Homemakers, Retired,

Education College graduate, GraduateSocial class Upper class, Middle class

40

Generation Generation Y,X Baby boomers


Personality



Motives Cleaning

Geographic segmentation

Regional North, South, East, WestCity Population Urban, Sub urban ,Rural

HUL Product Category Variables Examples

RIN


Benefits sought Quality, Value, Convenience, Product usage Heavy , Medium and LightOccasions / Situations Daily use/Weekly

Price sensitive Price sensitive, Value conscious


Age 18-60Gender Male/Female

IncomeLow income, Mid income, High income

Occupation

White collared, technical, Professional, Laborers, Homemakers, Retired, Unemployed


Social classUpper class, Middle class, Lower class, Poverty level

Generation Generation Y,X, Laggards

41


Personality



Motives Cleaning Geographic segmentation


HUL Product Category Variables Examples

Whe

el


Benefits sought Quality, Value, Convenience Product usage Heavy , Medium and Light,Occasions / Situations Daily use/Weekly

Price sensitive Price sensitive, Value conscious


Age 18-60Gender Male/FemaleIncome Low income, Mid income

Occupation Laborers, Homemakers, Retired, Unemployed


Social class Middle class, Lower class, Poverty level

Generation Baby boomers, Laggards

42


Personality



Motives Cleaning

Geographic segmentation


APPENDIX E

HUL’s mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene and

personal care with brands that help people feel good, look good and get more out of life. It

continues to be the market leader in the detergents segment in India. Although in the last

four years the volumes have gone down. The Volumes shares grow in Laundry 100 bps in

powders and 60 bps in Bars. This is due to their continued innovation to provide quality

detergents at affordable prices. Surf Excel’s formulation has been improved for better stain

removal without colour damage. The Rin franchise has emerged as India’s number two

detergent brand by value, with particularly good growth in Rin Shakti.

Since the competition has intensified significantly, HUL has increased its marketing

spend in Media to educate the consumers on the detergents.HUL has strategically invested

behind their powerful brands like Surf Excel and Rin. Surf Excel’s “Daag tho acche hain”

campaign was a runaway hit among the consumers. Aggressive ads for Rin detergent have

43

had a very good impact on the brand. Such creative and aggressive ads have helped HUL to

maintain its premium position.

The marketing initiatives were supported by major sales initiatives. In rural India,

the focus is to further extend reach, which has resulted in direct coverage of about 46% of

the rural population as of now. In urban markets, the objective is to improve customer

service. Dedicated sales teams have been formed to service key accounts and wholesalers in

larger towns and cities. A cell has been set up to attend to the modern trade, comprising

chain stores.

DISTRIBUTION AND RETAIL

One of the Major contributors to HUL’s success is its Supply chain and networks. HUL is

able to maintain its market share in the detergent industry because of their strong

distribution channel and wide reach across the country.

HUL ensures that consumers have ready access to their products across every corner of

urban and rural India. Their retail and distribution system spreads across the length and

breadth of the country. Their distribution network, comprising about 7,000 redistribution

stockiest.6.3 million retail outlets reaching the entire urban population, and about 250

million rural consumers.

Fig 3.1 Schematic of the distribution network of HUL

44

Factory

Just in Time Depot

Customer Service Provider

Big Box Retailer

Fig 3.2 Regional sales offices across India

Source: HUL (2010). http://www.hul.co.in/ [Accessed 11/05/2010]

45

Consumer

With the urban market saturated, FMCG companies are now targeting the rural markets. In

spite of the income imbalance between urban and rural India, rural holds great potential

since 70% of India’s population lives there.

Hindustan Unilever Limited (HUL) to tap this market conceived of Project Shakti. This

project was started in 2001 with the aim of increasing the company’s rural distribution

reach as well as providing rural women with income-generating opportunities. This is a

case where the social goals are helping achieve business goals.

The recruitment of a Shakti Entrepreneur or Shakti Amma (SA) begins with the executives

of HUL identifying the uncovered village. The representative of the company meets the

village head and identifies the woman who they believe will be suitable as a SA. After

training she is asked to put up Rs 20,000 as investment which is used to buy products for

selling. The products are then sold door-to-door or through petty shops at home. On an

average a Shakti Amma makes a 10% margin on the products she sells.

The main advantage of the Shakti programme for HUL is having more feet on the ground.

Shakti Ammas are able to reach far flung areas, which were economically unviable for the

company to tap on its own.

Although the company has been successful in the initiative and has been scaling up, it faces

problems from time to time for which it comes up with innovative solutions. For example, a

problem faced by HUL was that the SAs were more inclined to stay at home and sell rather

than going from door to door. Moreover, men were not liable to go to a woman’s house and

buy products. The company countered this problem by hosting Shakti Days.

This model has been the growth driver for HUL and presently about half of HUL’s FMCG

sales come from rural markets. The Shakti network at the end of 2008 was 45,000 Ammas

46

covering 100,000+ villages across 15 states reaching 3 million homes. The long term aim

of the company is to have 100,000 Ammas covering 500,000 villages and reaching 600 m

people. HUL has been successful in maintaining its distribution reach advantage over its

competitors. This programme will help provide HUL with a growing customer base which

will benefit the company for years to come.

Source: Annual report 2008 HUL. http://www.hul.co.in/ [Accessed 13/05/2010]

APPENDIX F

A total of 140 respondents have taken the survey and the results are as follows.

Questionnaire

Section A: Please choose any one of the options

1. Which detergent do you use for washing clothes?

a. Surf excel

b. Ariel

c. Wheel

d. Rin

e. Nirma

f. Others (Please specify)

47

By the graph it is clear that Surf Excel is the most preferred brand.

2. What is your frequency of buying detergents for washing clothes?

a. Daily

b. Weekly

c. Fortnightly

d. Monthly

By the graph below it is seen that people prefer to buy detergents once in a month,

and none of the respondents buy it daily.

48

3. What is the quantity of detergent you buy usually?

a. Sachet

b. 500 Gm

c. 1Kg

d. 2kg

By this graph we can interpret that people prefer to buy 1kg detergent packets.

4. Where do you usually buy the detergent?

a. Departmental store nearby

b. Super market/ Retail

c. Hyper super market

d. Door to door sale/ Home delivery

49

5. Do you use washing machine for washing clothes or hand wash?

a. Washing machine

b. Hand wash

6. Which detergent do you use for washing machine?

a. Surf excel automatic front load

b. Surf excel automatic top load

c. Ariel

d. Wheel

e. Rin

50

f. Nirma

g. Others (Please specify)

7. Are you aware that HUL detergents consume less water while washing clothes?

a. Yes

b. No

8. Are you satisfied with your detergent?

a. Yes

b. No

51

9. Do you like the fragrance of the clothes after they are washed using your preferred

detergent?

a. Yes

b. No

10. Can you differentiate between a HUL brand of detergents and other brands?

A. Yes

B. No

52

Section B: Please circle your choice in each of the options

10. How do you rate the quality of the detergent?

V Poor Poor Average Good V Good

Surf Excel 1 2 3 4 5

Ariel 1 2 3 4 5

Wheel 1 2 3 4 5

Rin 1 2 3 4 5

Nirma 1 2 3 4 5

Others 1 2 3 4 5

(Please specify)53

On an average Surf Excel’s quality was rated Good. Ariel, Wheel, Rin and Nirma were

rated Average. Tide was rated good.

11. How do you rate price of the detergent?

V Cheap Cheap Average Costly V Costly


Ariel 1 2 3 4 5

Wheel 1 2 3 4 5

Rin 1 2 3 4 5

Nirma 1 2 3 4 5

Others 1 2 3 4 5

(Please specify)

On an Average Surf Excel was rated Costly and all others except Wheel were rated

Average. Wheel was rated cheap.

12. How do you rate the packaging of the detergent?

V Poor Poor Average Good V Good


Ariel 1 2 3 4 5

Wheel 1 2 3 4 5

Rin 1 2 3 4 5

54

Nirma 1 2 3 4 5

Others 1 2 3 4 5

(Please specify)

Surprisingly all the detergents except Wheel were rated Good. Wheel was rated Average.

Section C

13. What is your gender? (Please tick one)

A. Male ( )

B. Female ( )

Male were 60%, Female 40%,

14. Which age group do you belong? (Please tick one)

A. 19 years and below ( )

B. 20-29 years old ( )

C. 30-39 years old ( )

D. 40-49 years old ( )

E. 50 years and above ( )

55

15. What is your occupation? (Please tick one)

A. Student ( )

B. Employed ( )

C. Retired ( )

D. Homemaker ( )

65% of the respondents were students, 20% were employed, and 15% were homemakers.

16. What is your annual Income in Lakhs? (Please tick one)

A.1, 50,000.Rs to 2, 50,000.Rs ( )

B.2, 50,000.Rs to 3, 50,000.Rs ( )

C.3, 50,000.Rs to 5, 00,000.Rs ( )

D.5, 00,000.Rs to 6, 50,000.Rs ( )

E. 6, 50,000.Rs and Above ( )

56

17. Which product does HUL needs to include in their portfolio of detergents?

Please fill the blank ___________________

70% of the respondents felt that HUL should include the Insta-whitener Liquid and 45% of

respondents wanted liquid detergent.

APPENDIX G

Zero is the amount of inventory HUL's distributors currently hold in Mumbai, and

the amount of inventory that distributors in the 42 major urban centers will hold. Zero is

also the percentage of stock damaged in transit from the company depots to the retailers in

Mumbai. Given that both these statistics are a rarity, if not a completely anomaly not only

in India but also globally, it's not surprising that the company is happy about hitting zero

with such regularity.

57

The 'Go To Market' (GTM) initiative was born out of a range of factors. "The marketplace,

as we know it, is changing with the evolution of modern trade. As a result, the throughput

from general trade is going down in certain markets, affecting the distributor's business.

All HUL salesmen now use handheld terminals on which they book replenishment orders

from retailers. Once they come back to the distributor, this data is synced in with the system

at HUL. Accordingly, the next the clearing and forwarding agents sends the stock to the

respective distributor who in turn sends it to the retailer. Now distributors hold no

inventory.

For the consumer too, as a result of the increased efficiency, the likelihood of finding the

required product in the shop when they visit it increases.

Source: Sangani, P. Economic Times (2009), The Zero Effect Pg no 3.

APPENDIX H

HINDUSTAN UNILEVER LIMITED (HUL) LEADING CONSUMER GOODS

COMPANY FULFILS BUSINESS OPTIMISATION GOALS WITH SAP

(FMCG) industry is an unforgiving one. “If a retailer’s shelves are empty of a

manufacturer’s product, he will simply fill them with a competing product,”

This challenge of ensuring that the business is optimised to cater to everchanging market

demands is an issue that HUL is deeply familiar with. Behind HUL’s vast business

58

footprint that spans 4,000 distributors is an entity consisting of 15,000 staff as well as

multiple factories, warehouses and branches. It is not easy keeping its house in order but it

found a perfect solution to its business management needs with SAP.

HUL knew that business optimization and supply chain efficiency cannot be achieved

without tight communication links with its external business partners. However, the task of

ensuring seamless connectivity between its IT systems with that of its distributors was not

an easy one.

In a distributed general trade environment, HUL has implemented a standard

distributor management system. To cover the extended supply chain, the distributor

operations needed to be tightly integrated with its internal ERP solutions. This system is

functioning well; HUL wants to preserve its investment in this area. This meant that the

new ERP solution must be able to integrate with this back-office application too, so that

HUL can continue to leverage and maximize it well into the future.

Source: Success stories of SAP

www.sap.com/india/about/company/successes/pdfs/ HUL .pdf [Accessed on 20/05/2010]

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Marketing Plan

Documents

Transcript of Marketing Plan