A PROJECT REPORT ON A STUDY OF LIPTON TEA/COFFEE VENDING MACHINE OF HINDUSTAN UNILEVER LIMITED AT INDORE

A PROJECT FOR PARTIAL FULFILMENT FOR AWARD OF DEEGRE OF MASTER OF BUSINESS MANAGEMENT

1| Page

Submitted By: Prahlad Patel MBA(MM) 3rd SEM SCH No. 4403

TABLE OF CONTENTS

1. INTRODUCTION 2. OBJECTIVE OF THE STUDY 3. INTERPRETATION

4. SWOT ANALYSIS

5. CONCLUSION 6. SUGGESTION 7. IMPLICATIONS 8. REFERECES

2| Page

ACKNOWLEDGEMENT

On the successful and satisfying completion of this project, I would like to share the immense joy in my heart with the others who have contributed to the making of this project by acknowledging them and I set forth to thank all the individuals directly or indirectly associated with it.

At the outset, I would like to thank Professor Bhavna Sharma, faculty, PIMR who has been a great influence in shaping this project and during my efforts to define the scope and frame of the project. His continual appraisal of the progress of the project and also the insight into the subject he has given, were a constant source of strength during my work.

I whole heatedly thank Mr. Prafull Jain, Sales Executive, HUL-OOH and Mr. Rajkumar Naveen, Territory Sales Officer, HUL-OOH who not only guided me in the making of the project but also gave me the in-depth knowledge about the sales branch of marketing.

3| Page

I have benefited a lot from the constructive criticism and suggestions given to me by my colleagues with whom I discussed the project. I would also like to extend my gratitude to all the faculty and lab staff for indirectly helping me to complete this project.

Prahlad Patel PIMR 2010-12

CERTIFICATE

This is to certify that Mr. Prahlad Patel, MBA(MM) 3rd Semester, Scholar No-1121604403 has completed summer training project report, entitled A Study Of Lipton Tea/Coffee Vending Machine Of Hindustan Unilever Limited At Indore under my supervision .He has completed their summer training from June 6, 2011 to July 15, 2011 at Hindustan Unilever Ltd., Indore .

4| Page

Guided By:
Professor Bhavna Sharma Faculty, PIMR

PREFACE

This project is a part of the academic curriculum required for the fulfillment of the two years full time programme, pursuing Post Graduate Programme in Prestige Institute of Management & Research, Indore. The project called Summer Internship Programme was undertaken at HINDUSTAN UNILEVER LIMITED. This project aimed at promotion and sales of HUL vending products with respect to its competitors. The study was carried out promotion and selling of the vending product at INDORE. It also involved face to face interaction between different customers and corporate individuals.

The project has shown a significant light on the process of promotion and targeting the customers and information of different products under vending division (Lipton Tea, Bru coffee, Taj Mahal
5| Page

Tea Bags and some other products) with respect to its competitors like Nestle and Georgia. Academically, the project provides a unique opportunity to have an exposure to real life business environment and to have an insight into the management intricacies, thus helping learning to be more purposeful and meaningful.

EXECUTIVE SUMMARY

Hindustan Unilever Limited is the Indian arm of the Anglo-Dutch Company Unilever. Both Unilever and HUL have established themselves well in the Fast Moving Consumer Goods (FMCG) category. In India, the company offers many households brands like, Dove, Lifebuoy, Lipton, Lux, Pepsodent, Ponds, Rexona, Sunsilk, Surf, Vaseline etc. Some of its efforts were also rewarded when four of HUL brands found place in the Top 10 brands list for the year 2008 published in The Economic Times. Unilever was a result of the merger between the Dutch margarine company, Margarine Unie, and the British soap-maker, Lever Brothers, way back in 1930. For 70 years, Unilever was the undisputed market leader but now faces tough competition from Proctor & Gamble and Colgate-Palmolive.

6| Page

This project gives a comprehensive idea about the SALES AND PROMOTION OF VENDING PRODUCT of one of the most important business sector in India, the FAST MOVING CONSUMER GOODS (FMCG) sector. The project was an endeavor to study the existing Vending Business and the Liptons presence in it. It aims at installation of vending machine in a company and has been executed in following three stages:
a. To identify customer requirement for Lipton tea/coffee vending machine by

the cold calling process.

b. Survey for promotion and selling of tea/coffee vending machine in various

organization of Indore city.

c. To study the installation process of tea/coffee vending machine at

orgnisaion. d. To study the customer feedback process for installed machines at indore city.

The task of installing a vending machine gets accomplice after several rounds of negotiations the respective company representative is made acquainted with the benefit his organization will get with Lipton. For this, a comprehensive cost-benefit has to be presented to him to convert the prospect into key account of HUL. Once an order is placed, the Lipton crew along with the distributor installs the Lipton Vending Machine. Proper and regular technical support is provided for machine management.

INTRODUCTION
7| Page

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company, touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. The companys Turnover is Rs. 20, 239 crores (for the 15 month period January 1, 2008 to March 31, 2010). HUL is a subsidiary of Unilever, one of the worlds leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of 40.5 billion in 2008. Unilever has about 52% shareholding in HUL. HUL products are manufactured in 80 factories. The operations involve over 2,000 suppliers and associates. HUL s distribution network, comprising about 7,000 redistribution stockiest, directly covers the entire urban population, and about 250 million rural consumers Hindustan Unilever was recently rated amongst the top four companies globally in the list of Global Top Companies for Leaders by a study sponsored by Hewitt Associates, in partnership with Fortune magazine and the RBL Group. The company was ranked number one in the AsiaPacific region and in India. The mission that inspires HUL's more than 15,000 employees, including over 1,400 managers, is to add vitality to life". The company meets everyday needs for nutrition, hygiene, and personal care, with brands that help people feel good, look good and get more out of life. It is a mission HUL shares with its parent company, Unilever, which holds about 52 % of the equity.

HISTORY HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and has employee strength of over 15,000 employees and contributes for indirect employment of over 52,000 people. The company was renamed in June 2007 to Hindustan Unilever Limited. The Anglo-Dutch company Unilever owns a majority stake (52%) in Hindustan Unilever Limited. HUL was one of the eight Indian companies to be featured on the Forbes list of Worlds Most Reputed companies in 2007.

LIPTON Lipton was created at the end of the 19th century by a grocer, Sir Thomas Lipton, in Glasgow, Scotland. In 1893, he established the Thomas J Lipton Co., a tea packing company with its headquarters and factory in Hoboken, New Jersey. Lipton teas were an immediate success in the US.

8| Page

In 1991, Unilever created a first joint venture with PepsiCo, the Pepsi Lipton Partnership, for the marketing of ready to drink (bottled and canned) teas in North America. In May 2007, Unilever became the first company to commit to sourcing all its tea in a sustainable manner. Unilever, announced all Lipton Yellow Label tea bags sold in Western Europe would be certified by 2010 and all Lipton tea bags sold globally by 2015.[9] Lipton's own tea estates were among the first to be certified. On 6 May 2009, Lipton received a Corporate Green Globe Award for its work with the Rainforest Alliance. Available in over 110 countries, Lipton is particularly popular in Europe, North America and the Middle East, parts of Asia and Australasia (Australia and New Zealand). Through the vending machines Hindustan Unilever Ltd. promotes the following three products:

Tea :

The packet tea market continued to be extremely competitive with national, regional and local players vying for increased share and volumes Prices of garden tea remained stable during the year, but have begun to firm up towards the later part of the year. The strategy of investing in building Brooke Bond as a mega brand to consolidate and strengthen the Company's leadership in the packet tea market helped Brooke Bond maintain its leadership during the year.

In 2009, Taj Mahal and Lipton were successfully re-launched. Aggressive Brand building support behind Lipton Natural Care has established Natural Care as a significant variant within the portfolio. The focus on brand building, and innovation has helped the Company to sustain its leadership position in the overall category and exit the year with a growth momentum. Lipton continued to grow strongly in the Out-of-Home, Vending Channel through acquisition of some major regional and national clients, and by strong activation at key consumer points. The business continued to record sustained profitability through its focused brand portfolio and highly streamlined supply chain and cost management.
9| Page

Coffee:

The Coffee business had another excellent year, led by strong growth in Instant Coffee. The strategy to strengthen the brand equity of Bru through clutter breaking and highly visible communication, coupled with world class activation led to significant share gain further consolidating its leadership position within the branded coffee market.

Bru Cappuccino continues to help Bru recruit new consumers into its franchise and consolidate Bru's channel leadership particularly in Modern Trade. The coffee category, particularly Instant Coffee, continued to be extremely competitive with national players securing growth in volumes and market share. Ground and Roasted coffee; predominantly confined to South India, faced competition from local and regional players. There is a perceptible trend of increasing number, of consumers migrating to instant coffee from roasted and ground coffee due to its inherent convenience.

Soups:

10 | P a g e

Knorr Soups enjoy a large share in the nascent and small soup market and held that position during 2008. A new range of international quality soups were introduced during the Foods business delivered a robust performance during 2008. This was on the back of a good 2007, reflecting sustained momentum in the Kissan, Knorr and Annapurna brands Kissan was relaunched with a new strategic positioning, improved packaging and a superior formulation, which significantly enhanced the quality of the product. Simultaneously, the Company focused on improving delivered freshness of processed foods to consumers with an improved supply year.

Simultaneously, a new campaign to encourage soup consumption at various moments in the day has been well received by consumers and customers. This will help the business to build volumes through higher consumption. HISTORY OF VENDING MACHINES

Automated retailing through vending machines is a concept that has been exploited by entrepreneurs around the world for over four decades. India, however, is relatively virgin market though with huge potential. Vending may be considered as a new concept in India, but it has been in existence for thousands of years.

Vending Timeline 215 B.C. 1076 A.D 1700s 1886 1888 1902 1905
11 | P a g e

Details

Device to dispense holy water used in temples of Egypt, described by Mathematician Hero, who lived in Alexandria. The Chinese produce a coin operated pencil vendor. Coin operated boxes appear in English taverns. U.S grants several patents for coin operated dispensers. Thomas Adams company installs Tutti Frutti gum machines on New York elevated train platforms. Horn and Hardart Baking Company opens automatic restaurant in Philadelphia. U.S post office begins to use stamp vendors.

1920s 1930s 1936 1946 1950 1957

First commercial cigarette vending machine enters the market. Bottled soft drink machines, cooled with ice, appear on market. National Automatic Merchandising Association is founded. Invention of first coffee vendors leads to use of vending machines for coffee breaks. First refrigerated sandwich vendors expand lunch venue. U.S Public Health Service approves Model Vending Sanitation Code, and NAMA establishes industrys first evaluation programmed certify vending equipment. U.S Public Health Service approves Model Vending Sanitation Code, and NAMA establishes industrys first evaluation programmed certify vending equipment. Dollar bill changers are added to vending banks. Electronic components applied to vending machines. Credit card/debit card services for vending machines introduced. 100th anniversary of vending machines in U.S. Flavored coffee, espresso and cappuccino introduced in machines. First remote wireless transmission of data from machines to warehouse. New dollar coin introduced by U.S mint

1957

1960 1980 1985 1986 1991 1993 1999

HERITAGE HULs heritage dates back to 1888, when the first Unilever product, Sunlight, was introduced in India. Local manufacturing began in the 1930s with the establishment of subsidiary companies. They merged in 1956 to form Hindustan Lever Limited (The company was renamed Hindustan Unilever Limited on June 25, 2007). The company created history when it offered equity to Indian shareholders, becoming the first foreign subsidiary company to do so. Today, the company has more than three lakh resident shareholders. HULs brands -- like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Sun
12 | P a g e

silk, Clinic, Close-up, Pepsodent, Lakme, Brooke Bond, Kissan, Knorr, Annapurna, Kwality-Walls - are household names across the country and span many categories - soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary products. They are manufactured in over 35 factories, several of them in backward areas of the country. The operations involve over 2,000 suppliers and associates. HUL's distribution network covers 6.3 million retail outlets including direct reach to over 1 million.

THE TOP 10 COMPANIES IN FMCG SECTOR

1. Hindustan Unilever Ltd. 2. ITC (Indian Tobacco Company) 3. Nestle India 4. GCMMF ( AMUL) 5. Dabur India 6. Asian Paints (India) 7. Cadbury Industries 8. Britania Industries 9. Procter and Gamble Hygine and Healthcare 10. Marico Industries

COMPANY PROFILE
13 | P a g e

Type Industry Founded Headquarter Key people

:

Public company BSE:HUL Fast Moving Consumer Goods (FMCG)

:
: :

1933 Mumbai, India Harish Manwani (Chairman), Nitin Paranjpe (CEO and Managing Director) Home & Personal Care, Foods, Water Purifier Rs 20,869.57 crore (US$ 4.45 billion) (2008-2009) Over 65,000 direct & indirect employees Unilever Plc www.HUL.co.in

: :
:

Products Revenue Employees Parent Website

:
: :

BUSINESS OF THE COMPANY

HULs business activities are divided into four broad areas: Home & Personal Care
14 | P a g e

 Personal Wash Fabric Wash Home Care Oral Care Skin Care Hair Care Deodorants & Talcs Color Cosmetics Foods Tea Coffee Branded Staples Culinary Products Ice Creams Modern Foods ranges

New Ventures Hindustan Lever Network Ayush ayurvedic products & services Sangam

Exports HPC Beverages Marine Products Rice Castor

Brands HUL s brands are household names across the country. They include Lifebuoy, Lux, Surf Excel, Rin, and Wheel, Fair & Lovely, and Ponds, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna and Kwality Walls.
15 | P a g e

PAST MILESTONE CHRONOLOGY

YEAR 1888 1895

MILESTONES

Sunlight soap introduced in India. Lifebuoy soap launched; Lever Brothers appoints agents in Mumbai, Chennai, Kolkata, and Karachi. Pears soap introduced in India. Brooke Bond Red Label tea launched. Lux flakes introduced. Vim scouring powder introduced. Vinolia soap launched in India. Vanaspati introduced by Dutch margarine manufacturers like Van den Berghs, Jurgens, Verschure Creameries, and Hartogs. Rinso soap powder introduced. Gibbs dental preparations launched. Lever Brothers gets full control of North West Soap Company. Hartogs registers Dalda Trademark. Unilever is formed on January 1 through merger of Lever Brothers and Margarine Unie. Hindustan Vanaspati Manufacturing Company registered on November 27; Sewri factory site bought. Vanaspati manufacture starts at Sewri. Application made for setting up soap factory next to the Vanaspati factory at Sewri; Lever Brothers India Limited incorporated on October 17. Soap manufacture begins at Sewri factory in October; North West Soap Company's Garden Reach Factory, Kolkata rented and expanded to produce Lever brands. United Traders incorporated on May 11 to market Personal Products. Mr. Prakash Tandon, one of the first Indian covenanted managers, joins HVM.

1902 1903 1905 1913 1914 1918 1922 1924 1925 1926 1930 1931 1932 1933 1934 1935 1937

16 | P a g e

1939 1941 1942 1943 1944 1947 1951 1955 1956 1957 1958 1959 1961 1962 1963 1964 1965 1966

Garden Reach Factory purchased outright; concentration on building up Dalda Vanaspati as a brand. Agencies in Mumbai, Chennai, Kolkata and Karachi taken over; company acquires own sales force. Unilever takes firm decision to "train Indians to take over junior and senior management positions instead of Europeans". Personal Products manufacture begins in India at Garden Reach Factory. Reorganization of the three companies with common management but separate marketing operations. Pond's Cold Cream launched. Mr. Prakash Tandon becomes first Indian Director. Shamnagar, Tiruchy, and Ghaziabad Vanaspati factories bought. 65% of managers are Indians. Three companies merge to form Hindustan Lever Limited, with 10% Indian equity participation. Unilever Special Committee approves research activity by Hindustan Lever. Research Unit starts functioning at Mumbai Factory. Surf launched. Mr. Prakash Tandon takes over as the first Indian Chairman; 191 of the 205 managers are Indians. Formal Exports Department starts. Head Office building at Back bay Reclamation, Mumbai, opened. Etah dairy set up, Anik ghee launched; Animal feeds plant at Ghaziabad; Sunsilk shampoo launched. Signal toothpaste launched; Indian shareholding increases to 14%. Lever's baby food, more new foods introduced; Nickel catalyst production begins; Indian shareholding increases to 15%. Statutory price control on Vanaspati; Taj Mahal tea launched. Hindustan Lever Research Centre, opens in Mumbai. Mr. V. G. Rajadhyaksha takes over as Chairman from Mr. Prakash Tandon; Fine Chemicals

1967 1968

17 | P a g e

Unit commissioned at Andheri; informal price control on soap begins. 1969 1971 1973 1974 1975 Rin bar launched; Fine Chemicals Unit starts production; Bru coffee launched Mr. V. G. Rajadhyaksha presents plan for diversification into chemicals to Unilever Special Committee - plan approved; Clinic shampoo launched. Mr. T. Thomas takes over as Chairman from Mr. V. G. Rajadhyaksha. Pilot plant for industrial chemicals at Taloja; informal price control on soaps withdrawn; Liril marketed. Ten-year modernization plan for soaps and detergent plants; Jammu project work begins; statutory price control on Vanaspati and baby foods withdrawn; Close-up toothpaste launched. Construction work of Haldia chemicals complex begins; Taloja chemicals unit begins functioning. Jammu synthetic Detergents plant inaugurated; Indian shareholding increases to 18.57%. Indian shareholding increases to 34%; Fair & Lovely skin cream launched. Sodium Tripolyphospate plant at Haldia commissioned. Dr. A. S. Ganguly takes over as Chairman from Mr. T. Thomas; Unilever shareholding in the company comes down to 51%. Government allows 51% Unilever shareholding. Foods, Animal Feeds businesses transferred to Lipton. Agri-products unit at Hyderabad starts functioning - first range of hybrid seeds comes out; Khamgaon Soaps unit and Yavatmal Personal Products unit start production. Launch of Lipton Taaza tea. Mr. S. M. Datta takes over as Chairman from Dr. A. S. Ganguly. Surf Ultra detergent launched. HUL recognised by Government of India as Star Trading House in Exports. HUL's largest competitor, Tata Oil Mills Company (TOMCO), merges with the company with effect from April 1, 1993, the biggest such in Indian industry till that time. Merger ultimately accomplished in December 1994; Launch of Vim bar; Kissan acquired from the UB Group. HUL forms Nepal Lever Limited, HUL and US-based Kimberley-Clark Corporation form 50:50 joint venture - Kimberley-Clark Lever Ltd. - to market Huggies diapers and Kotex

1976 1977 1978 1979 1980 1982 1984 1986 1988 1990 1991 1992 1993

1994

18 | P a g e

feminine care products. Factory set up at Pune in 1995; HLL acquires Kwality and Milkfood 100% brand names and distribution assets. HLL introduces Wall's. 1995 HUL and Indian cosmetics major, Lakme Ltd., form 50:50 joint venture - Lakme Lever Ltd.; HUL enters branded staples business with salt; HLL recognized as Super Star Trading House. Mr. K. B. Dadiseth takes over as Chairman from Mr. S. M. Datta; Merger of Group company, Brooke Bond Lipton India Limited, with HLL, with effect from January 1; HUL introduces branded aatta; Surf Excel launched. Unilever sets up International Research Laboratory in Bangalore; new Regional Innovation Centers also come up. Group company, Pond's India Ltd., merges with HUL with effect from January 1, 1998. HUL acquires Lakme brand, factories and Lakme Ltd.'s 50% equity in Lakme Lever Ltd. Mr. M. S. Banga takes over as Chairman from Mr. K. B. Dadiseth, who joins the Unilever Board; HUL acquires 74% stake in Modern Food Industries Ltd., the first public sector company to be disinvested by the Government of India. HUL enters Ayurvedic health & beauty centre category with the Ayush range and Ayush Therapy Centers. Launch of Hindustan Lever Network; acquisition of the Amalgam Group Launch of "Pureit" water purifiers

1996

1997 1998 2000

2002 2003 2005

MANAGEMENT STRUCTURE

Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods (FMCG) Company. It is present in Home & Personal Care and Foods & Beverages categories. HUL and Group
19 | P a g e

companies have about 16,000 employees, including 1200 managers. The fundamental principle determining the organization structure is to infuse speed and flexibility in decision-making and implementation, with empowered managers across the company's nationwide operations. For this, HUL is organized into two self-sufficient divisions - Home & Personal Care & Foods - supported by certain central functions and resources to leverage economies of scale wherever relevant. Board Divisions Central functions Businesses

Board of Directors/ Key Personnel

NAME Mr. Harish Manwani Mr Nitin Paranjpe Mr Hemant Bakshi Mr C.K Prahalad Mr D.S Parekh Mr Gopal Vittal Mr Sridhar Ramamurthy

PROFILE Chairman CEO & MD Executive Director development Independent Director Independent Director Executive Director

sales

&

customer

Executive Director & CFO

OUT OF- HOME BUSNESS

20 | P a g e

Have you caught the tail of a new trend in town? Have you as yet spotted the best of brands running into the terrain of out-of-home consumption? Running for cover from the meltdown in the in-home segment of consumption! Out-of-home branding is the new buzzword sweeping Indian shores. Brands that stubbornly remain indoors through their positioning and segmentation strategies are in for a jolt! Consider the facts. The Indian population is a young population. Life expectation is longer than before. Income standards are up. Except for a year of aberration, the Indian monsoon has largely behaved! Good monsoons mean a good crop. Large parts of the rural economy are a non tax-paying economy. Good rains spell good crops and good crops in turn spell a good amount of disposable income!

The metro is a happening place. We have five big ones and a whole host of 29 one million plus population towns that are buzzing with activity. The man works. The woman works as well. The average Indian is spending a lot more time out of home than before. Eight hours at work, two hours on travel and two hours of outdoor entertainment and eating out, gobbles up half his day. And that's a lot of time spent out of home! The brand in his life has to appeal to his senses more out-of-home than when in home.

Tea and coffee have always been very popular beverages among people. It is beyond the class boundaries. People of all age groups relish them. With globalization and expansion of retail business, markets etc the ready to serve food items and beverages have gained lot of demand. One can spot the coffee tea vending machines almost everywhere- be it Hospitals, Airports, Commercial complexes, offices, big markets and even local colony markets. Its popularity can be judged from the fact that in places like Pragati Maidan one can find ready to serve tea, coffee almost everywhere. It has become a style statement to be drinking these instead of the handmade tea/coffee. They sell like hot cakes especially in markets and shopping places. Nowadays people are conscious about hygiene. Many people go in for these ready to serve tea/coffee and of course their good taste is a major drawing factor.

Lipton Yellow Label has painted many a town and cities yellow! Many a restaurant, many a bus stop, and many a signage potential is today all yellow Lipton seems to run out of home and focus on consumption that is outdoor while Sister Brooke Bond seems to focus on what is happening inside the home! Happy people are productive people. This is the basic rule of any company. Big or small, every employer tries at keeping his employees, customers and clients happy. Imagine if
21 | P a g e

an organization has a wide range of refreshments to grab, at fingertips; if they could enjoy getting a whole load of refreshments as and when they wished for it.

Lever foods service gives them this freedom in form of vending machines. Available in hot and cold formats, they are the complete vending solutions for an organization. So, everyone is happy at the push of a button. Geographically, tea is widely consumed in the North, East and West of India, and is popular with a wide variety of social classes and consumer age groups. Black standard tea constitutes nearly 80% of value sales. In the south, coffee is bigger as a proportion of total hot drinks than in the rest of the country though green tea has seen its popularity rise.

It accounts for 90% of the total beverage consumption in the country. In 2007, tea co9nstituted 70% of retail volume sales, compared to coffee and other hot drinks with 4.4% and 26% shares respectively.

Retail sales volume in year 2009 (Source: www.answers.com)

22 | P a g e

India accounts for 26% of the total production of worlds tea and 4.6% of that of worlds coffee.

World Coffee Production in year 2009 - (source:www.financialexpress.com)

World Tea Production in year 2009 (source : www.answers.com)

HUL has further consolidated on the successful relaunched of Brooke Bond in the second half of 2003. The three Brooke Bond sub-brands, Taj Mahal, Red Label and Taaza, with their distinct positioning, have expanded their presence to cover new geographies. This has helped strengthen marketplace position. Appropriately priced packs have been introduced to make the Brooke Bond offerings more accessible. Coupled with high-impact market activation, these packs have increased Brooke Bonds market share and sustained its strong growth.

The Lipton brand, targeted at young consumers, has been appropriately expanded in the Out-ofHome segment. Lipton Ice Tea has been successfully test-marketed in Bangalore and Chennai. The
23 | P a g e

consumer test proven mix will now be taken national, leveraging the alliance between HUL and Pepsi. HUL has already identified Out-of-Home as a growth driver. The channel, which has posted strong growth in the last two years, will be used for the entire HUL Beverages and Foods categories. In the Instant Coffee segment, HUL continues to post strong growth. Bru Instant Coffee has been re-launched, with a new identity, communication and modern pack formats. Superior activation, penetration building activities and investment in strategic channels, like Outof-Home, is contributing to the growth. Bru, as a franchise, has been strengthened with the filter coffee brand, Deluxe Green Label, re-launched as Bru Roast & Ground.

Consumption in leading producing countries- (source: ICO)

PRODUCT AND MACHINE RANGE Premixe:

Special price list (inclusive of all taxes) Ingredients Lipton Cardamom Tea Lipton Masala Tea Bru Coffee Lipton Hot Lemon Tea Lipton Diet Whitener Lipton Normal sugar Lipton Diet Cardamom 24 | P a g e Pack Size 1kg 1kg 1kg 1kg 1kg 1kg 1 kg Cups Pack 80ml 80ml 80ml 80ml 80ml 80ml 80ml Cost\Pack 260 270 235 195 215 165 275 Cost\Cup 2.60 2.70 2.35 1.95 1.79 1.38 2.75

Taj Mahal Tea Bag Kissan Badam Milk Knorr Tomato Soup

1Box 1kg 1kg

Par Tea Bag 80ml 80ml

82 350 400

.82 3.5 2.46

Machine:

Key Features: Option of 2 ingredients (Chhotu) Used computer CPU SMPS which is readily available in local market at low cost Consumer can dispense require quantity manually Higher beverage temperature by design No fix option for flow of drink. All motors, valves and Exhaust fan works on 12V DC Temperature control through mechanical thermostat Maintenance cost is less due to low cost of SMPS and can be locally repaired

Two Option:
1. Option of 2 ingredients in nature of coffee, tea, soup etc.

2. Post or pre paid option through smart card 3. Option for consumption data down loading to PC for MIS processing. 4. Staggered dispensing option for tea bag.
5. Auto Cleaning and half cup

Four Option:
1. Option of 4 ingredients in nature of coffee, tea, soup etc.

2. Post or pre paid option through smart card

25 | P a g e

3. Option for consumption data down loading to PC for MIS processing. 4. Staggered dispensing option for tea bag.
5. Auto Cleaning and half cup

A Lipton Vending Machine is the most advanced of its kind. Features like Microprocessor controlled water temperature, inbuilt Digital Counter, Hardware Lock and Auto-Flush system helps to maintain a low failure rate. It is also hygienic and insect proof, which also contributes to its durability. Flexibility in cup offerings full and half; is another attribute that makes the Lipton Vending Machine stand out as the most convenient vending machine. The technologically superior equipment has been put through intense stress tests so that it can withstand the demanding local market

SERVICE SUPPORT

For the Lipton vending machine, there shall be an authorized service center with a vast network to cater to the needs of the customer. Three basic steps shall be undertaken to ensure long life and smooth functioning of your Lipton Vending Machine.

1) Regular Daily Maintenance: - Proper training shall be imparted on the daily usage, cleaning and maintenance of the Lipton Vending Machine, at the time of installation, to your personnel. 2) Monthly Preventive Maintenance: - The Lipton crew shall make regular monthly visits for check-ups, maintenance and smooth functioning of Lipton Vending Machine. Breakdown and Repairs: - In case of breakdown, the Lipton crew shall address the problem promptly and effectively. Also, a regular dispatch plan for the pre-mixes shall be regularly communicated to you, for you to maintain an appropriate stock inventory. An
3) 26 | P a g e

exclusive customer care phone no. is provided for any queries and assistance on the Lipton Vending Machine.

DISTRIBUTION CHANNEL
FACTORY

DEPOT

DEPOT

DIS.

DIS.

DIS.

DIS.

CONSUMER

CONSUMER

CONSUMER

CONSUMER

You dont know how much people are buying pears, lux & fair & lovely but in OOH company directly touches the customer & they know how much consumption is there. In the distribution channel of vending machine retailer doesnt play part after the distributor (dis) consumer can avail the product.

COMPETITOR PRODUCT
27 | P a g e

The three chief competitors of Hindustan Unilever Ltd in tea and coffee vending business are Nescafe, Tata, Georgia and Caf Coffee Day which have their presence in the market with following products:

1) Caf Coffee Day

Caf Coffee Day is a chain of coffee shops in India. A division of Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL), it is commonly known as Coffee Day. It opened its first cafe in 1996 on Brigade Road in Bangalore, and today has the largest cafe retail chain in India - with 436 cafes in 69 cities. Headquartered in Bangalore, a majority of its cafes are also located in Bangalore. The cafe chain has had much success riding, and to some extent creating, the cafe culture wave that swept across metropolitan Coffee Day sources coffee from 10000 acres of coffee estates, the 2nd largest in Asia, that is owned by a sister concern and from 11,000 small growers. It is one of Indias leading coffee exporters, with clients across the USA, Middle East Europe and Japan.

(2) FRESH & HONEST Till recently a company selling beverages, Fresh and Honest, a part of the Sterling group, has now added noodles and corn flakes to its product basket by signing up deals with Indo Nissan Foods Limited (makers of Top Ramen noodles) and Kellogg's. Fresh and Honest imports soup powder and Swiss chocolate powder from two Swiss companies Haco and Domaco respectively. The coffee bean, dip tea packs, milk and sugar are sourced within India. The coffee bean is sourced from Chikmagalur, Karnataka. Fresh and Honest imports soup powder and Swiss chocolate powder from two Swiss companies Haco and Domaco respectively. The coffee bean, dip tea packs, milk and sugar are sourced within India. The coffee bean is sourced from Chikmagalur, Karnataka.

28 | P a g e

(3) TATA TEA Another competitor of HUL is Tata with its brand Tetley. Tata Coffee Limited, one of the worlds largest integrated coffee company. The company earlier known as Consolidated Coffee was renamed as Tata Coffee with the merger of Coffee Land and Asian Coffee. Tetley has been a member of the Tata Group since March 2000 and today contributes around twothirds of the total turnover of Tata Tea. The company is a joint venture between Tata Tea, which produces 40 million kg of tea per annum at its gardens, and the UK-based Tetley Group, a tea blender and tea bag producer of international repute. The Tata-Tetley combine offers a wide range of international quality products, such as round tea bags, string and tag tea bags, and packet tea. VENDING MACHINE & THEIR FEATURES SINGLE OPTIONsimple-sleek, detachable drip tray, hot water facility. DOUBLE OPTION-HOTdetachable drip tray, hot water facility. TRIPLE OPTION-HOTbuilt in stabilizer, auto cleaning, digital counter, temperature interlocking. FOUR OPTION-HOT auto cleaning, digital counter, temperature interlocking, auto flushing. MULTIPLE OPTION-HOT Provision for mineral water bubble top, auto flushing, temperature interlocking, digital counter. (4) NESTLE

The main competitor of HUL vending products in the market is Nestle. And listed below are some points about Nestle. All about Nestl. Nestl was founded in 1866 by Henri Nestl, a pharmacist, who developed a food for babies who were unable to breastfeed. The Nestl Company has aimed to build a business based on sound human values and principles. Nestl is committed to the following Business Principles in all countries, taking into account local legislation, cultural and religious practices:

29 | P a g e

Nestl's business objective is to manufacture and market the Company's products in such a way as to create value that can be sustained over the long term for shareholders, employees, consumers, and business partners.

Nestl does not favor short-term profit at the expense of successful long-term business development. Nestl recognizes that its consumers have a sincere and legitimate interest in the behavior, beliefs and actions of the Company behind brands in which they place their trust and that without its consumers the Company would not exist. Nestl believes that, as a general rule, legislation is the most effective safeguard of responsible conduct, although in certain areas, additional guidance to staff in the form of voluntary business principles is beneficial in order to ensure that the highest standards are met throughout the organization.

Nestl is conscious of the fact that the success of a corporation is a reflection of the professionalism, conduct and the responsible attitude of its management and employees. Therefore recruitment of the right people and ongoing training and development are crucial. Nestle continues to maintain its commitment to follow and respect all applicable local laws in each of its markets. Georgia Premixes: 1. Georgia Milk 2. Georgia Cardamom Tea/ Ginger Tea/ Masala Tea 3. Georgia Coffee 4. Georgia Hot Lemon Tea 5. Georgia Without Sugar Milk 6. Sun fill Soup

Nestle Premixes: 1. Nescafe Coffee Premix 2. Nescafe Low Sugar Premix 3. Nescafe Classic coffee
30 | P a g e

4. Everyday Whitener Premix 5. Everyday Dairy Whitener Poly 6. Badam Milk Premix 7. Nestea Lemon / Peach Premix 8. Nestea Cardamom Tea Premix 9. Maggie Hot Cup Soup Tomato 10. Tea Bags

OBJECTIVE OF THE STUDY

Objective of study:
e. To identify customer requirement for Lipton tea/coffee vending machine by

the cold calling process.

31 | P a g e

f. Survey for promotion and selling of tea/coffee vending machine in various

organization of Indore city.

g. To study the installation process of tea/coffee vending machine at

orgnisaion.
h. To study the customer feedback process for installed machines at indore

city.

32 | P a g e

33 | P a g e

34 | P a g e

INTREPRETATION

TO IDENTIFY CUSTOMER REQUIREMENT FOR LITPON TEA/COFFEE VENDING MACHINE BY THE COLD CALLING PROCESS: This is first step of process of selling machine. Its depend upon the various facts a. Nature of business b. Location c. No. of employees d. Status

After identifying to the customers selected the best approach to meet them such as cold calls, introduced, taken appointment and then visited at their shop, factory and concerning place and given information about the vending machine. Apart from corporate world and public places like metro stations, airports and railways stations there are some other places as well where the use of tea/ coffee machines is prevalent. These are shops, showrooms and industries. A short list of clients of Indore according to area.

INDUSTRIAL ORGANIZATIONS: SR NO. 1 2 3 4 NAME OF CLIENT & ADDRSESS Parth packaging, Palda Road Nakada distributor Supremo Pvt. Ltd, Palda Road, Indore Sunsine packaging, Palda road, Indore CLIENT TYPE Warehouse Distributor manufacturer manufacturer NO. OF EMP 120 5 85 80 REMARK Interested Lipton Lipton Lipton

OTHERS: SR NO. NAME OF CLIENT & CLIENT TYPE ADDRSESS NO. OF EMP REMARK

35 | P a g e

1 2 3 4 5 6 7

Ithlati Sari, 13, Kanchan Shop Bag, Indore Airen Yamaha, Indore Ambay indore Automobile

40 60 35 35 8 35 35

Nescafe Nescafe Nescafe Lipton Lipton Nescafe Nescafe

corporation, Retail & distributor

Vinod textile store, Malwa shop mill, Indore Surana Family Patwa Motors, Indore Ravi warehousing, RNT marg, Indore distributor Automobile 11, Dealer(J.P. Cement)

There are many industries are upcoming opportunity according to the area, for the installation of HULs tea/coffee vending machine.

INDUSTRIAL ORGANIZATIONS: SR NO. 1 2 3 4 5 NAME OF CLIENT & CLIENT TYPE ADDRSESS Geetanjali motors, teen Automobile emli chouraha, Indore Subham steel industry, manufacturer Nemawar road, Indore Agroha Mill, Palda Road, Mill Indore Duggal paints & chemical Warehouse NO. OF EMP. 20 125 65 45 85 REMARK Interested Interested Interested Interested Interested

Central Equipments pvt. Manufacturing Ltd, Palda Road, Indore

36 | P a g e

OTHERS: SR NO. 1 2 3 4 5 NAME OF CLIENT & ADDRSESS Sagar Yamaha, Indore Rajal emporium Samra Saree, Indore Nimbus Beverages, Indore Gupta & Agrawal ji, Indore CLIENT TYPE Automobile Shop Shop Accounting dep. Accoutant NO. OF EMP. 65 25 35 35 20 REMARK Interested Interested Interested Interested Interested

SURVEY FOR PROMOTION AND SELLING OF EA/COFFEE VENDING MACHINE IN VARIOUS ORGANIZATION OF INDORE CITY.: In the promoting process conveyed the information about the product with respect of customer benefit and tried to convince them to buy the product, but mostly time customer always avoided to buy the product because problem of same test and some cased customer said I like boiled tea than it and many more. After describing the all information about the product customer always asks to test one cup of the tea, means he/she is asking for demonstration of the product and we have to. And at last follow up to the customers to acquire them.

TO STUDY THE INSTALLATION PROCESS OF TEA/COFFEE VENDING MACHINE AND TO TAKE CUSTOMER FEEDBACK FOR INSTALLED MACHINES AT ORGNISAIONS IN INDORE CITY: The task of Installation of a

vending machine gets accomplice after several rounds of negotiations the respective company representative is made acquainted with the benefit his organization will get with Lipton. For this, a comprehensive cost-benefit has to be presented to him to convert the prospect into key account of HUL. Once an order is placed, the Lipton crew along with the distributor installs the Lipton Vending Machine. Proper and regular technical support is provided for machine management. This is last and most vital stage of process, because it is very difficult to persuade to the customers. But few customers takes decision in only few days. To convert to the customer, to show the reliability is very important and never say bad things about competitor, otherwise sometime it may
37 | P a g e

be good but most of the time it will create to find the alternatives about product. And at last we have to give assurance for after sales services. After sales services in this case distributor is responsible because according to terms and condition distributor will be responsible for best services. The reasons for which the corporate houses prefer vending machines to manual methods of preparing tea and coffee:

Provides options for wide variety of products Time saving Less cost associated Diet, low sugar, without sugar options available for concerned groups Options for hot and cold drinks Keeps record of number of cups dispensed allowing the organization to maintain budget.

Financial Aspects: Deal is confirmed and negotiation ends at the point where both the parties are assured of their benefits. So, I tried to analyze the account in the following 2 ways: a)Monthly billing of tea and coffee in the company: Let us consider a firm A having 60 employees and consumption is 120 cups per day (say, 60 cups of tea and coffee each). TEA: 60 * 4 = Rs 240 = Rs 300 = Rs 540 = Rs 540 * 25 = 13500 = Rs 1000 = Rs 100] = Rs 14600

COFFEE: 60 * 5 Total For 1 month [Add: salary of spot boy Add: breakage Total

[Here, each cup of tea and coffee is assumed to be of Rs 4 and Rs 5 respectively]

38 | P a g e

Now, with Lipton vending machine this cost will minimized as follows: TEA COFFEE = 2.6 * 60 = Rs 156 = 2.35 * 60 = Rs 141

Total for 1 month = Rs 297* 25 = Rs 7425 Add: Rent Total = Rs 1000 = Rs 8425

Benefit of customer = 14600 8425 = Rs 6175

An activity that is closely tied to sales is distribution. You have a factory and you have your customers in different locations, which different purchasing patterns and demands. What is the best way to take your product to the customers so that it remains profitable for the firm too? That is a question answered by distribution. In FMCG, generally we deal in indirect selling, i.e., we sell to someone who then sells it to someone else. The reasons for the avoiding or not using the vending machine: Its not boiled tea Machine rate is high Bored by the same taste Bad customer services(affected by previous service provider) Dont want to increase the assets and many more

SWOT ANALYSIS

39 | P a g e

40 | P a g e

STRENGTHS

Strong and well differentiated brands with leading share positions. High quality and safe products, endorsed by the Hindustan Unilever Limited Seal of Guarantee at affordable prices. Distribution structure with wide reach, high quality coverage and ability to leverage scale. Ongoing Product innovation and renovation, to convert consumer insights High quality manpower resources. Attractive design and distinctive features of the machine. Far better preventive and break down maintenance. Excellent range of tea and coffee premixes providing flexibility of sweetness and diet option for concerned people.

WEAKNESSES

Limited success in changing consumption habits of people. Price positioning in some categories allows for low price competition. Stock-out in case of much advertised flavors acts as a barrier in the retail channels. Much higher machine prices with lesser flexibility vis--vis competition which leads to higher rentals/EMIs. Vending machine having customization like token system are highly priced making it unviable for many corporate clients in a need to record/control consumption.

After sales service not up to the Expected Standards. Hot beverages are less preferred during summers.

41 | P a g e

OPPORTUNITIES

Brand growth through increased consumption depth and frequency of usage Upgrading consumers through innovation to new levels of quality and performance. Growing consumption in Out of Home categories and high potential market. Development of alternate channels such as catering, STD/PCOs, cyber caf, pump, etc. Leveraging technology to develop more products that provide Nutrition, Health and Wellness. Hosting the Commonwealth Games in 2010 will influence the development of the retail infrastructure creating opportunities for vending operators to fill the gap in the market.

THREATS

Low priced competition now present in all categories. Seasonality. Competitors. Substitutability. Heavy competition with new entrants offering me-too products or with very little variation with all kinds of attractive offers for getting edge in market.

42 | P a g e

CONCLUSION

The Summer Training Program forms an important component of education. It is an attempt to bridge the gap between the academic institution and corporate world. Under this, I undertook a 68-week Training at any organization during the Intervening period between close of Semester II and commencement of Semester III. The training, which would be a simulation of real work environment, requires the students to undergo the rigor of professional environment both in form and substance. It exposed us to technical skills, and helps them to acquire social skills by drawing them into contact with real professionals. I have done my summer training program in Hindustan Unilever Limited at Indore and learned a lots of things, that is vital in real world. I knew a lots of things, like
43 | P a g e

a. How can target to the customer? b. How can make an approach to meet the customers? c. The way of talking and present yourself in front of the customers? d. And how can acquire to customer and retain them?

44 | P a g e

REFERECES

There were several sources which provided me with the valuable information about Hindustan Unilever Limited. This information helped me in enhancing the affectivity of this presentation. Some of my valuable sources are:

www.google.com www.yahoo.com www.hll.com www.answers.com www.indiainfoline.com www.naukrihub.com www.wikipedia.com www.businessworldindia.com www.financialexpress.com www.indiacoffee.org

45 | P a g e