A PROJECT REPORT

Of
Market Reasearch
On

Hindustan Unilever Ltd (HUL)

Project Report Guide:

Name: Prof.L.R.S.Mani
Designation: Professor

Submitted By:
Name:Jaswanth Addala
RegNo:2015JULB01046
Specialization:Marketing

ACKNOWLEDGEMENT
Survey is an excellent tool for learning an exploration no classroom routine can substitute which is
possible while working in real situations application of the article knowledge to practical situations
is the bonanzas of this survey.
Without a proper combination of inspection and perspiration, its not easy to achieve anything.
There is always a sense of gratitude, which we express to other for the help and the needy service
they render during the development of this project.
I would like to thank my Prof. L.R.S.Mani who has always there to help and guide me when I
needed help. His perceptive criticism kept me working to make the project more full proof. I am
thankful to him for encouraging & enriching experience for me. I am very thankful to him for all
the addition & enhancement done to us.
No words can adequately express our overriding debt of gratitude to my parents whose
support helps me in all the way above all I shall thank all my friends.!

TABLE OF CONTENTS

1.

Company

Profile

4
2.

Introduction
8

3.

Rationale
11

4.

Literature review and Problem formulation

5.

Objectives and Research Mythology

14

6.

Analysis and Interpretation of data

19

7.

Conclusions

12

Suggestions

28
8.

Reference
31

9.

Appendix
a. Questionnaire
32

Bibliography

COMPANY PROFILE
If Hindustan Unilever straddles the Indian corporate world, it is because of
being single-minded in identifying itself with Indian aspirations and needs in
every walk of life.
Type

Public company BSE: 500696

Industry

Fast Moving Consumer Goods FMCG)

Founded

1933

Headquart Mumbai, India

ers
Key
people
Products
Revenue

Net
income

Harish Manwani (Chairman), Sanjiv

Mehta (CEO and Managing Director)
Home & Personal Care, Food & Beverages
301.7Billion INR (2014-15)

43.15Billion INR (2014-15)

Employees Over 65,000 direct & indirect employees

Parent

Unilever Plc (52%)

Website

www.hul.co.in

History of HUL
In the summer of 1888, visitors to the Kolkata harbor noticed crates full
of Sunlight soap bars, embossed with the words "Made in England by
Lever Brothers". With it, began an era of marketing branded Fast Moving
Consumer Goods (FMCG).
Soon after followed Lifebuoy in 1895 and other famous brands like Pears,
Lux and Vim. Vanaspati was launched in 1918 and the famous Dada
brand came to the market in 1937.
, Unilever set up its first Indian subsidiary, Hindustan Vanaspati
Manufacturing Company in 1931, followed by Lever Brothers India
Limited (1933) and United Traders Limited (1935). These three
companies merged to form HUL in November 1956; HUL offered 10% of
its equity to the Indian public, being the first among the foreign
subsidiaries to do so. Unilever now holds 67.2% equity in the company.
The rest of the shareholding is distributed among about three lakh
individual shareholders and financial institutions.
HUL formed a 50:50 joint venture with the US-based Kimberly Clark
Corporation in 1994, Kimberly-Clark Lever Ltd, which markets Huggies
Diapers and Kotex Sanitary Pads. HUL has also set up a subsidiary in
Nepal, Unilever Nepal Limited (UNL), and its factory represents the
largest manufacturing investment in the Himalayan kingdom. The UNL
factory manufactures HUL's products like Soaps, Detergents and
Personal Products both for the domestic market and exports to India, in a
historic step, the government decided to award 74 per cent equity in
Modern Foods to HUL, thereby beginning the divestment of government
equity in public sector undertakings (PSU) to private sector partners.
HUL's entry into Bread is a strategic extension of the company's wheat
business. In 2002, HUL acquired the government's remaining stake in
Modern Foods.
In 2002, HUL made its foray into Ayurvedic health & beauty centre
category with the Ayush product range and Ayush Therapy Centres.
Hindustan Unilever Network, Direct to home business was launched in
2003 and this was followed by the launch of Pureit water purifier in
2004.
In 2007, the Company name was formally changed to Hindustan Unilever
Limited after receiving the approval of shareholders during the 74th AGM
on 18 May 2007. Brooke Bond and Surf Excel breached the the Rs 1,000

crore sales mark the same year followed by Wheel which crossed the Rs.
2,000 crore sales milestone in 2008.
On 17th October 2008 , HUL completed 75 years of corporate existence
in India.
In January 2010, the HUL head office shifted from the landmark Lever
House, at Backbay Reclamation, Mumbai to the new campus in Andheri
(E), Mumbai.
On 15th November, 2010, the Unilever Sustainable Living Plan was
officially launched in India at New Delhi.

In March, 2012 HULs state of the art Learning Centre was inaugurated at
the Hindustan Unilever campus at Andheri, Mumbai.
In April, 2012, the Customer Insight & Innovation Centre (CiiC) was
inaugurated at the Hindustan Unilever campus at Andheri, Mumbai
HUL completes 80 years of corporate existence in India on October 17 th,
2013.
Introduction to HUL
With nine out of ten Indian households using our products, we believe we
have the ability to make a difference through our brands and bring about
a social change.
Hindustan Unilever Limited (HUL) is India's largest Fast Moving
Consumer Goods Company with a heritage of over 80 years in India and
touches the lives of two out of three Indians.
HUL works to create a better future every day and helps people feel
good, look good and get more out of life with brands and services that
are good for them and good for others.
With over 35 brands spanning 20 distinct categories such as soaps,
detergents, shampoos, skin care, toothpastes, deodorants, cosmetics,
tea, coffee, packaged foods, ice cream, and water purifiers, the
Company is a part of the everyday life of millions of consumers across
India. Its portfolio includes leading household brands such as Lux,
Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Ponds, Vaseline, Lakm,
Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru,
Knorr, Kissan, Kwality Walls and Pureit.

The Company has over 18,000 employees and has an annual turnover of
INR 31,425 crores (financial year 2015 16). 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 53.3 billion in 2015. Unilever has 67.2%
shareholding in HUL.

BRANDS

PERSONAL WASH
TEA
Brooke BondLux
Lipton

COFFEE
Brooke Bond
Bru
Breeze

Lifebuoy
FOODS
Kissan
Liril
Annapurna
Knorr
Hamam

Dove
ICECREAM
Kwality Wall's
Pears

LAUNDRY

Rexona
SKINCARE

Surf Excel

Fair & Lovely

Rin

Pond's

Wheel

Vaseline
Aviance

HAIR CARE

ORAL CARE

Sunsilk Naturals

Pepsodent

Clinic

Closeup

DEODORANTS

COLOUR COSMETICS

Axe

Lakme

Rexona
AURVEDIC PERSONAL AND HEALTH CARE
Ayush
HOME AND PERSONAL CARE

FOODS

Pure it The world's most advanced in-home

water purifier

HUL brands shine in Nielsen's Most Trusted Brands survey

27-11-2015
Dove and Lifebuoy amongst the top five brands in India
Seventeen Hindustan Unilever Limited (HUL) brands featured in the 100
Most Trusted Brands list published by Brand Equity based on a survey
conducted by Nielsen across India.
It is indeed a matter of distinction that HUL is the company with the
largest number of brands featured in the 2015 Most Trusted Brands list.
Two of HULs purpose driven brands, Dove and Lifebuoy feature in the
top five getting a big boost of confidence from consumers. A total of four
HUL brands feature in the Top 10 and seven in the Top 20.

Summary of HUL brands rankings:

In 2015: 2 in top 5; 4 in Top 10; 7 in Top 20; 8 in Top 25; 17 in Top 100;
In 2014: No HUL brand in top 5; 3 in Top 10; 5 in Top 20; 8 in Top 25; 16
in Top 100
HUL Brands Rankings in Most Trusted Brands 2015:
Dove: 4; Lifebuoy: 5; Lux: 8; Surf Excel: 10; Vim: 13; Ponds: 14; Fair &
Lovely: 17; Closeup: 23; Pepsodent: 29; Sunsilk: 30; Rin: 34; Clinic Plus:
36; Vaseline: 55; Pears: 60; Taj Mahal Tea: 78; Hamam: 86; Wheel: 93

Category Positions
Vim is No.1 in Household care
Dove is No.2 in Personal care followed by Lifebuoy, Lux, Ponds, Fair &
Lovely
Water Purifiers Pureit is No.2 (Pureit was No.1 last year)
Other highlights
Dove is No.1 Most Trusted Brand in South
Dove No.2 among Men and Lifebuoy No.3 among Men
Fair & Lovely No.2 among Women and No.1 among housewife category
Clinic Plus No.3 and Dove No.4 among Housewife category
Dove No.1 among 15-25 years (excluding chief wage earners and
housewife)
Vim No.3 and Lux No.4 among 26-60 years (excluding chief wage
earners and housewife)

RATIONALE
I JASWANTH ADDALA of IFIM Business School has chosen the topic to study the
Products Of Hindustan Unilever Ltd (HUL) and to study

Consumer buying behavior

Consumer response,

Consumer perception, and

Brand image in the eyes of consumers

Interest of consumers

REVIEW OF LITERATURE
HUL is also known for its strong distribution network in India. In order to further
strengthen its distribution in the rural areas and to empower the local women, HUL
launched a Project Shakti in 2000 in a district in Andhra Pradesh. The idea behind this
project was to create women entrepreneurs and provide them with micro-credit and training
in enterprise management, which would enable them to create self- help groups and become
direct-to-home distributors of HUL products. Today Project Shakti is present across 80,000
villages in 15 states and is helping many underprivileged women earn their livelihood.
As the per-capita income of India is increasing along with the Indian population. So, the
future for the FMCG Companies is bright. To analysis the past performance & the future
demand of HUL, FMCG products we have considered following points:

We have a listed the different FMCG product lines of HUL.

We have done competitors analysis in which the market share of top FMCG
companies are analyzed & the market share of HULS different categories product
are analyzed with comparison to its competitors.
Then performance analysis is made by taking 10 year financial data from 19982007. The profit & sales growth is analyzed we have done SWOT analysis to know
the threat & opportunities of HUL in present market.
The future opportunities for FMCG products are taken into consideration by
analyzing the increased per capita income & increased disposable income to
forecast the future demand of HUL.

SWOT ANALYSIS
STRENGTHS
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...

Due to its long presence in India has deep penetration 20 consumer product
category, over 15,000 employees, including over 1,300 managers, is to "add vitality
to life."

The company derives 44.3% of its revenues from soaps and detergents, 26.6% from
personal care products, 10.5% from beverages, and the rest from foods, ice creams,
exports, and other products.

Low cost of production due to economic of scale. That means higher profits and / or
more competitions. Better market penetration.

HUL is also one of the country's largest exporters; it has been recognized as a
Golden Super Star Trading House by the Government of India.

Weakness

Strong competitors and availability of substitute products

Low export levels

High price of some products

High advertising cost

Opportunities
Increasing per capita national income resulting in higher disposable income.

Growing middle class and growing urban population.

Increasing gifts cultures.

Increasing departmental stores concept impulse @ at cash counters.

Globalization.

Threats
HUL's tea business has declined marginally; reason is that, cost pressure is likely
due to rising crude and freight costs.

Tax and regulatory structure.

Mimic of brands.

Removal of import restrictions resulting in replacing of domestic brands.

Temporary slowdown in economy can have an impact on FMCG in Industry.

OBJECTIVE OF STUDY

The main objective of this project is to study the consumer behavior towards Hindustan
Unilever Limited (HUL)

To study various brands of HUL

To study the competitive brands in the market of ,home care products,. food brands,
personal care products

To find the market share of the HUL brands and its competitive brands.

To determine the key areas of strength and weakness for HUL brands To develop a
promotion plan for brand communication of the HUL

To study various marketing strategies of HUL

RESEARCH METHODLOGY

There is large no. of FMCG companies in the market, to find the defining strategies used,
the methodology used is interview and survey method.
Data Collection Method:
For this research study, primary data as well as secondary data was collected
Primary Data has been collected through Google forms and personal contact. For this
purpose, both questionnaire and Personal interview was considered with the
consumers.Secondary data has collected from magazines, newspaper, company literature
and websites.
Data analysis:
Analyzing codes to each question were awarded. Thereafter which was written and then
analyzed

METHODOLOGY FOR RESEARCH PROBLEM

Following steps were taken in to consideration, to identify the research problem-

1. Informal investigation
Wad a discussion with consumers in the locality and surrounding areas.
2. External and Internal Analysis
Understanding customer problem
Understanding the market structure
3. Situational Analysis

 Tastes & preferences

Needs & income
A Compressive study of Secondary and Primary data (Informal Interviews) was collected
through specific questionnaires for people.
SAMPLING TECHNIQUE
For my survey I used Cluster Sampling technique. I selected a sample of 50 people around
the area and interviewed them through google forms according to the questionnaire and
informal discussion with local people of Bangalore city. In the survey I tried to find out
their preferences & tastes, their purchasing habit, are they brand loyal or they consider their
friends advice or some reference group during purchasing. I also tried to find out that are
they satisfied with the quality or present stature of product, did they want any change in the
existing product.
RESEARCH INSTRUMENT
Research instruments, for the purpose of primary data collection were Questionnaires. The
Questionnaires were designed in two sets, one is for customers and another is for shopowners and distributors.
The first set is to find out about the needs and preferences of the customers and what they
want from in the product.
Second set is all about what are the steps company are taking to get about the information
about he changing preferences in the taste and needs of the customers and what company is
doing to sustain their market position as well as to tap new market.

DATA ANALYSIS
For the analysis of data collected through survey work, a series of steps were followed
which are given in a chronological order
Each question of the questionnaire was assigned codes (coding)
Each questionnaire was punched into ms-excel sheet thus forming a data base (punching)
Further the data was analyzed by using diagrams, graphs, charts etc.
The graphic rating scale and ranking method was used to measure the response and
attitude of the customer.
Finally, an effort was made to extract meaningful information from analyzed data, which
acted as a base for the recommendations

ANALYSIS AND INTERPRETATION OF DATA

MARKET SHARE OF FMCG COMPANIES IN INDIA

19%
34%

4%
6%

hul
itc
nestle

8%
29%

britania
dabur
others

In the above pie charts we see the position of various FMCG companies doing business in
India. We can see that HUL is enjoying the position of market leader and is following by
ITC as close second in the market share of FMCG products.

MARKET LEADER-HINDUSTAN UNILEVER LIMITED

80
69.7

70
60

54.3

57.3

67.5

54.5
47.8

50

44
39.1

40 37.5

hul

30
20
10

23.7
13.6

9.7

22.7
20.8

Column1

14.5
8.7

7.4

3.4

As mentioned in the above graph ,hul is enjoying the leader position in the market and is
having highest market share which are followed by the market challengers like dabur India
ltd , nestle,itc etc. in different categories of fmcg products like shampoos deos, coffee, dish
wash etc.

HINDUSTAN UNILEVER LIMITED-COMPETITORS

60
48.8

50
40
30

29.5

28.1

30.3

hul
Series 3

20
10
0
toothpaste

ketchups

In some category market challengers are giving high level competition in different product
lines such as ketchup and tooth paste.

So we can see that in overall FMCG business HUL is distantly ahead of rest of the
companies as far as market share of different product are concerned

CATEGORY WISE SALE GROWTH OF FMCG SECTOR OF HUL IN IN INDIA

CATEGORY
PERCENTAGE
SOAPS AND DETERGENTS
19.3%
PERSONAL PRODUCTS
22.4%
ICE CREAM
15.7%
PROCESSED FOODS
13.7%
BEVERAGES
13.6%
OTHERS
19.4%

19%

19%

PERSONAL PRODUCTS

13%
13%

SOAPS AND DETERGENTS

22%

15%

ICE CREAM
PROCESSED FOODS
BEVERAGES
OTHERS

PORTFOLIO STRADDLING THE PYRAMID ACROSS CATEGORIES

Particulars
Laundry Soaps
Shampoo Skin
Toothpaste
tea
Market
2247
1658
542
698
691
1113
size-$ mln
Hul share
37.5%
54.3% 47.8%
54.5% 29.5%
22.7%
Nearest
13.6
9.7
23.7
7.4%
48.8%
20.8%
competitor

Results and discussions from google forms survey:

Coffee
177
44.0%
39.1%

In the above pie chart, it shows the various age of consumers who are purchasing the HUL
products the age group is in between 20to51 years using Skin care products, Deodorants,
personal care product etc. as per the secondary study HUL got major market share. In India
every age segment uses HUL products. from the responses I got 75% responcses from young
age group i.e 20-35 years old people.

In above pie chart we can see gender based purchase for HUL Out of 50 responses which i got 80%
of the consumers are Male and remaining 20%are Females.

In the survey we can see that most of the consumers are unmarried out of the 50 responses 96% are
unmarried and 4% are married as the consumers who are unmarried are using most of the HUL.

These are the customer income groups who are purchasing the products from HUL in personal
care, skincare and other FMCG goods etc.i got the responcses form below 10000 rupees level of
income because major responces from yong age segments having age group 20 to 35 years.
19% responces from above 50000 rupees income level.

In the chart we can see that 56% of the customers are using HUL products and P&G is in the
second place with 32% of consumers and the remaining market is occupied by different brands.
Form this we could say that HUL is well know and most prefeserrable FMCG products purchase
by peopletha the other companies.HUL got better supply chaim management system .peoples
purchasing decision base on availability and price.

In the pie chare we can see that 60% of the HUL products are bought from super markets and 32%
from retail stores and 8% from local vendors. HUL distributing wide range of varities of products
which maches to people need and affordability.HUL products available at arms reach
distances.HUl products are available at all of the possible distribution channels.as per
responceswhich I have got say that 60% people are purchasing from super markets followed by
32% retail stores from this we could say that majour no of people resides in urban area of
bengalore are purchasing Hul products form super markets rather than local vendors.

Most of people are prefers about 58% of the consumers are preferring bathing soaps and 36% are
purchasing skin care products 26% purchasing food products 38% purchasing Deodorants and 2%
of them purchasing other products.

What do you think prices of HUL products are?

50%
40%
30%
20%
10%
0%

you

mother

father

Here we can see how people react to the pricing of HUL products their reaction is that mother is
the most satisfied customer actually she is the one who purchases all the grocery needed for a
family through supermarkets or retail stores as mother shows influence on father during purchase
of products and as it shows impact on the consumption of son and ultimately customers are feeling
moderate about the pricing of the product and they are not feeling cheap about the products and
overall customers are satisfied with the pricing of the product.

Here we can see the customers are extremely satisfied with the availability of HUL products and
also we can see some of the customers are satisfied and moderately satisfied customers and even
there are dissatisfied people and extremely dissatisfied customers with the availability of HUL
products as HUL had very big supply chain which covers all over India even rural places and
occupies market and enjoys market share even in rural India.

Here we can see that the most of the customers are extremely satisfied with quality of HUL
products and even there are some dissatisfied customers due to they may be of other brands or they
may be not interested in HUL thats why there are dissatisfied customers for HUL.

In my family my mother prefers most of the HUL products because she is the one who purchase
the groceries needed to family and she knows the quality of the products very well and father has
the impact of mother on him while purchasing the products as two decision makers of the family
prefers HUL and the remaining members will also use the HUL products.

These are influential factors which shows effect on customers while purchasing products factors
are price, quality, packaging, experience and influence by others means influence by family
members.

CONCLUSIONS AND SUGGETIONS

SUGGESTIONS AND RECOMMENDATIONS

As it is obvious from the study the products of HUL have approached the high mark of sale
in the global consumer market. However, there are genuine reasons to observe that they
have yet to attain the cutting edge status on many counts. In this regard a few suggestions
can be made to give the required boost to the marketing prospects of HUL products.
An attempt should be made by HUL management to tap all the potentials offered by the
global market by devoting a more substantial, efficient and better equipped resource base.
This task can be accomplished in the first place by implementing a stronger and more
ending distribution channel for various products so that even those sections of consumers
who are not accessible so easily, can be covered with greater ease.
Efficient infrastructural base coupled with better and more comprehensive advertising
strategies should be resorted to; though HUL is presently surfing ahead of others on the
path of taking some great initiatives it should be more concerned about it for the purpose of
corporate image building.
The price structure for various products should be more within the limit of affordability for
consumers; the grassroots consideration in this regard should note ignored. Here, the policy
of loco-centric rather than uniform price structure would certainly be more advantageous.
HUL should go for more planned and sensible marketing and advertising strategies with a
view to accomplishing the task of global brand image buildings.

CONCLUSION
In recent years, the FMCG sector declined due to down trading. Also because of presence of
large number of companies trying to seize this opportunity, this force the old HUL for the
change and thus, their transformation has resulted in a new HUL, which has successfully faced
this challenge and reversed this trend. It has done so by substantially strengthening their brands
and building capabilities. This has already begun to yield benefits and they are returning to
growth. Volume growth is being followed by value growth, which in turn is bringing profit
growth.
India is one of the most exciting markets offering great potential. Over the next 10 years, the
per capita income in India is likely to double. In FMCG, there is an opportunity to catalyze
penetration, increase usage, and upgrade consumers. As a result, the FMCG market is expected
to grow to over Rs. 100,000 cores from its current base of Rs. 40,000 crores.
The new Hindustan Lever see an exciting opportunity for growth. They have 35 powerful
brands covering all segments, with leading market positions in most. Today, these are stronger
and more relevant to the consumer than ever. The people are energized by the scale of the
opportunity and determined to seize it. The scale of the business and operations gives them the
resources needed. They are delivering good services and the changes they brought in the
products are well taken by the customers, by this they are generating sustainable profitable
growth

LIMITATIONS OF THE STUDY

In attempt to make this project authentic and reliable, every possible aspect of the topic was kept in
mind. Nevertheless, despite of fact constraints were at play during the formulation of this project.
The main limitations are as follows:
Due to limitation of time only few people were selected for the study. So the sample of
consumers was not enough to generalize the findings of the study.

The main source of data for the study was primary data with the help of self- administered
questionnaires. Hence, the chances of unbiased information are less.

People were hesitant to disclose the true facts.

The chance of biased response cant be eliminated though all necessary steps were taken to
avoid the same.

BIBLIOGRAPHY
WEBSITES
www.hul.co.in
www.fmcg.com
www.economictimes.com

BOOKS
Kothari ,CR, research methodology
Philip kotler, marketing management

APPENDIX

QUESTIONNAIRE
1. Name

2. Age
Mark only one oval.
Up to 20 Years
2035 Years
36 50 Years
51 above

3. Sex
Mark only one oval.
Male
Female
4. Marital status
Mark only one oval.
Married
Unmarried
5. Monthly income
Mark only one oval.
UP to 10000
10001 25000
25001 50000
50001 and above

6. Do you use FMCG products

Mark only one oval.
Yes
No
7. Which Brand of FMCG Products do you use
Check all that apply.
Hindustan Unilever limited

P&G
Nivea
Loreal
All of the above
Other:
8. Where do you buy FMCG products from
Mark only one oval.
Super markets
Retail stores
Local vendors
Others
9. Which Unilever's product do you usually prefer or use
Check all that apply.
Bathing soaps
Skin care
Foods
Deodorants
Others
10. Do you think Unilever's product is easily available in market
Mark only one oval.
Yes
No
11. During purchase what influence you to purchase the product
Mark only one oval.
Price
Quality
Packaging
Experience
Influence by others
12. Describe Hindustan Unilever's in one word

13. Your comments on Hindustan Unilever's product

28