CERTIFICATE

SOM-LALIT INSTITUTE OF
BUSINESS ADMINISTRATION
Navrangpura, Ahmedabad -380 009.

This is to certify that Group Project on “COMAPARATIVE

ANALYSIS OF HLL, NIRMA AND P&G AS FMCG MAJORS FOR
AHMEDABAD MARKET” is submitted to “Som-Lalit Institute of
Business Administration” by the group of T.Y.B.B.A. (Name of the
students are mentioned below) for the year 2006-2007 in partial
fulfillment of Gujarat University requirements for the award of the degree
of Bachelor of Business Administration.

Roll No Name
75 Kosha K. Patel
109 Ravi K. Sangani
115 Jaini D. Shah
119 Nishita J. Shah
121 Simoli P. Shah
134 Hemant B. Soni
141 Pratik D. Tilva
143 Jigar S. Vachhani
153 Nikita D. Patel
156 Nidhi N. Shukla

1
_______________ _________________ _________________
DIRECTOR PROJECT IN-CHARGE EXTERNAL
(Prof. Deepal Joshi) EVALUATOR

2
 ACKNOWLEDGEMENT

The feeling of gratefulness to anyone’s help directly arises form the

bottom of the heart. A small but an important and timely help can proved
to be a mile stone in one’s life. Every human being has such kind of
experience. Being human beings. We also have the same feeling of
gratefulness as today. We have achieved an important mile stone in own
life the completion of this project.

The project is dedicated to all the people whom we met, to

guidance, talked, interviewed and learned something form them. At this
occasion we want to grab this opportunity to acknowledgement my
sincere thanks to all of them while submitting this report.

To start with college, we would like to thanks the Director of the

college Mr.R.H.Vyas and the Professors. Their full co-operation in my
project helped me in bringing my best to make this project successful.

We have no words to express gratitude to my project guide faculty

Mrs. Deepal Joshi who continuously guided us till the last word of this
project report. Undoubtedly, the practical as well as theoretical knowledge
that we have gained from her which helps us in enhancing our career and
managing things in a better way. This experience has helped us in gaining
a lot of practical knowledge, which we have never gained only through
books.

And last we would like to thank our parents, friends and all those
respondents whose unconditional response helped us to complete our
project.

3
 PREFACE

With India Inc. scaling new heights every day and industrial sector
signing with a sun’s brightness, everyday is optimistic that Indian FMCG
industry is poised for new growth in coming years.

The same FMCG sector which was said to be ailing after flat growth
rates in previous years is yet opening up new vistas with entry of new
players changing the equations. It promotes that a lot is to happen. With
the view of getting some insight into Indian FMCG industry and witness
the fast track change, we decided to prepare a project report on
companies HLL, P&G and Nirma which are the key players in Indian FMCG
sector.

FMCG business in India is one of the most happening and striving

with a size i.e. close to Rs.450 billion provide immense potential to benefit
from for both consumers as well as industries.

Studying FMCG sector by compounding 3 major players in the arena

provides us with ample opportunity to study real marketing where
“Consumer is king”.

It helped us in understanding consumer behavior, brand positioning,

differentiation of brands and marketing strategies of the company.

The sector is also characterized by immense competition that is

leading to innovation in products. With the FDI approval in retail sector
and with advent of organized retailing, we can say that lives of Indian will
never be same as they are going to be benefited from it immensely.

One of the reasons why we selected companies like HLL, P&G and
Nirma is evident from the fact that they have presence in almost all
consumer goods categories and have created brands that are themselves
synonymous with their respective segments.

With the help of this we have tried to learn:

1. To work in team.

2. To get practical knowledge about the Market Research.

4
 CHAPTER – 1

INTRODUCTION

5
 WHAT IS FMCG?

Marketing fast-moving consumer goods (FMCG) is one of the

“purest” and most sophisticated forms of selling. The great FMCG-selling
companies, such as PROCTER & GAMBLE invented mass marketing
almost single-handedly and grew to become multinational giants in the
process. FMCG played a major role in the rise of consumerism during the
twentieth century and drove the development of the media from the
days of the sponsored radio show of the 1920s. Selling FMCG provided the
funds for the mushrooming growth of television and the establishment of
advertising agencies as a vast, lucrative industry. In the West, and now
increasingly in the rest of the world, almost everyone's lives are touched
by FMCG.

Fast Moving Consumer Goods (FMCG) , also known as Consumer

Packed Goods (CPD) , are products that have a quick turnover , and
relatively low cost. Consumers generally put less thought into the
purchase of FMCG than they do for other products. Though the absolute
profit made on FMCG products is relatively small, they generally sell in
large numbers and so the cumulative profit on such products can be
large.

Examples of FMCG generally includes a wide range of frequently

purchased consumer products such as toiletries, soap, cosmetics, teeth
cleaning products, shaving products and detergents, as well as other non-
durables such as glassware, bulbs, batteries, paper products and plastic
goods. FMCG may also include pharmaceuticals, consumer electronics,
packaged food products and drinks, although these are often categorized
separately. FMCG products can be thought of in contrast with consumer
durables, which are generally replaced less than once a year (e.g. kitchen
appliances).

It's not hard to see just how deeply they penetrate our domestic
lives. Attitudes towards FMCG are changing along with consumer
behavior, and numerous lobby groups pressurize large corporations as
part of a general attempt to foster many kinds of social reform. In much
of the developing world, however, FMCG are still welcomed as a symbol of
progress towards prosperity. For leading brand manufacturers, the real
opportunities for growth lie in these newer markets.

In India, power has shifted from the manufacturers to the

retailers, and competition has intensified. It's often a bitter struggle, as
salespeople for supermarket suppliers battle for space on the shelves and
are trapped in a cycle of wasteful trade promotions that they cannot
control. Retailers are consolidating, but are only just beginning to step
outside their home territories. If they are successful, it is likely to drive
down manufacturers' prices, hurting brand equity.

6
 HINDUSTAN LEVER LIMITED

HISTORY

In the summer of 1888, visitors to the Kolkata harbour 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 Dalda
brand came to the market in 1937.

In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati

Manufacturing Company, followed by Lever Brothers India Limited (1933)
and United Traders Limited (1935). These three companies merged to
form HLL in November 1956; HLL offered 10% of its equity to the Indian
public, being the first among the foreign subsidiaries to do so. Unilever
now holds 51.55% equity in the company. The rest of the shareholding is
distributed among about 380,000 individual shareholders and financial
institutions.

The erstwhile Brooke Bond's presence in India dates back to 1900. By

1903, the company had launched Red Label tea in the country. In 1912,
Brooke Bond & Co. India Limited was formed. Brooke Bond joined the
Unilever fold in 1984 through an international acquisition. The erstwhile
Lipton's links with India were forged in 1898. Unilever acquired Lipton in
1972, and in 1977 Lipton Tea (India) Limited was incorporated.

Pond's (India) Limited had been present in India since 1947. It joined the
Unilever fold through an international acquisition of Chesebrough Pond's
USA in 1986.

Since the very early years, HLL has vigorously responded to the stimulus
of economic growth. The growth process has been accompanied by
judicious diversification, always in line with Indian opinions and
aspirations.

The liberalization of the Indian economy, started in 1991, clearly marked

an inflexion in HLL'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.

7
 CORPORATE PURPOSE

HLL’s mission 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.

The company’s deep roots in local cultures and markets around the
world give us our strong relationship with consumers and are the
foundation for our future growth. The company will bring wealth of
knowledge and international expertise to the service of local consumers -
a truly multi-local multinational.

The company’s long-term success requires a total commitment to

exceptional standards of performance and productivity, to working
together effectively, and to a willingness to embrace new ideas and learn
continuously.

To succeed also requires, they believe, the highest standards of

corporate behavior towards everyone they work with, the communities
they touch, and the environment on which they have an impact.

This is their road to sustainable, profitable growth, creating long-

term value for their shareholders, their people, and their business
partners.

8
 HLL’S VISION

Hindustan Lever Limited (HLL) supplies high quality goods and services to
meet the daily needs of consumers and industry. In doing so, the
Company is committed to exhibit the highest standards of corporate
behaviour towards its consumers, employees, the societies and the world
in which we live.

The company recognizes its joint responsibility with the Government and
the Public to protect environment and is committed to regulate all its
activities so as to follow best practicable means for minimizing adverse
environmental impact arising out of its operations.

The company is committed to making its products environmentally

acceptable, on a scientifically established basis, while fulfilling consumers'
requirements for excellent quality, performance and safety.

The aim of the Policy is to do all that is reasonably practicable to prevent

or minimize, encompassing all available knowledge and information, the
risk of an adverse environmental impact arising from processing of the
product, its use or foreseeable misuse.

This Policy document reflects the continuing commitment of the Board for
sound Environment Management of its operations. The Policy applies to
development of a process, product and services, from research to full-
scale operation. It is applicable to all company operations covering its
plantations, manufacturing, sales and distribution, research & innovation
centers and offices. This document defines the aims and scope of the
Policy as well as responsibilities for the achievement of the objectives laid
down.

Their vision is to continue to be an environmentally responsible

organization making continuous improvements in the management of the
environmental impact of our operations.

They will achieve this through an Integrated Environment Management

approach, which focuses on People, Technology and Facilities, supported
by Management Commitment as the prime driver.

The Environment Policy

Hindustan Lever Ltd. (HLL) is committed to meeting the needs of
customers and consumers in an environmentally sound manner, through
continuous improvement in environmental performance in all our
activities. Management at all levels, jointly with employees, is responsible
and will be held accountable for company's environmental performance.

9
 PRESENT STATURE

Hindustan Lever Limited (HLL) 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. They endow the company with a scale of combined
volumes of about 4 million tones and sales of Rs.10,000 crores.

HLL 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.

The mission that inspires HLL's 36,000 employees, including over

1,350 managers, is to "add vitality to life." HLL 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 HLL shares with
its parent company, Unilever, which holds 51.55% of the equity. The rest
of the shareholding is distributed among 380,000 individual shareholders
and financial institutions.

HLL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair &
Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond,
Kissan, Knorr-Annapurna, Kwality Wall's – are household names across
the country and span many categories - soaps, detergents, personal
products, tea, coffee, branded staples, ice cream and culinary products.
They are manufactured in close to 80 factories. The operations involve
over 2,000 suppliers and associates. HLL's distribution network,
comprising about 7,000 redistribution stockists, directly covers the entire
urban population, and about 250 million rural consumers.

HLL has traditionally been a company, which incorporates latest

technology in all its operations. The Hindustan Lever Research Centre
(HLRC) was set up in 1958, and now has facilities in Mumbai and
Bangalore. HLRC and the Global Technology Centers in India have over
200 highly qualified scientists and technologists, many with post-doctoral
experience acquired in the US and Europe.

HLL believes that an organization’s worth is also in the service it

renders to the community. HLL is focusing on health & hygiene education,
women empowerment, and water management. It is also involved in
education and rehabilitation of special or underprivileged children, care for
the destitute and HIV-positive, and rural development. HLL has also
responded in case of national calamities / adversities and contributes
through various welfare measures, most recent being the village built by
HLL in earthquake affected Gujarat, and relief & rehabilitation after the
Tsunami caused devastation in South India.

10
 Over the last three years the company has embarked on an
ambitious programmed, Shakti. Through Shakti, HLL is creating micro-
enterprise opportunities for rural women, thereby improving their
livelihood and the standard of living in rural communities. Shakti also
includes health and hygiene education through the Shakti Vani
Programmed, and creating access to relevant information through the
iShakti community portal. The programmed now covers about 50,000
villages in 12 states. HLL's vision is to take this programmed to 100,000
villages impacting the lives of over a 100 million rural Indians.

HLL is also running a rural health programmed – Lifebuoy Swasthya

Chetana. The programmed endeavours to induce adoption of hygienic
practices among rural Indians and aims to bring down the incidence of
diarrhoea. It has already touched 70 million people in approximately
15000 villages of 8 states. The vision is to make a billion Indians feel safe
and secure.

If Hindustan Lever 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.

11
 QUALITY POLICY

Hindustan Lever Limited considers quality as one of the principal

strategic objectives to guarantee its growth and leadership in the markets
in which it operates.

The company is committed to respond creatively and competitively

to the changing needs and aspirations of our consumers through
relentless pursuit of technological excellence, innovation and quality
management across our businesses, and offer superior quality products
and services that are appropriate to the various price points in the market
as well as to our commitment to building shareholder value.

The company recognizes that its employees are the primary source
of success in its operations and is committed to training and providing
them the necessary tools and techniques as well as empowering them to
ensure broad base compliance of this policy in the organization at all
levels.

The company is committed to fulfill its legal and statutory

obligations and international standards of product safety and hygiene and
will not knowingly sell product that is harmful to consumers or their
belongings. It will institute systems and measures to monitor compliance
in order to meet its responsibilities to consumers.

The company will maintain an open communication channel with its

consumers and customers and will carefully monitor the feedback to
continuously improve its products and services and set quality standards
to fulfill them.

The company is committed to extend its quality standards to its

contract manufacturers, key suppliers and service providers and by
entering into alliances with them, to jointly improve the quality of its
products and services. This policy is applicable to production from its own
facilities as well as to production that is outsourced.

The company will periodically review this quality policy for its
effectiveness and consistency with business objectives.

The company delegates authority and responsibility for

dissemination and implementation of this policy to each Business and Unit
Head.

12
 PRODUCTS

BATHING SOAPS

(1) Breeze soap

Breeze Scent Magic is the soap which fulfills the aspirations of

women of rural India. Breeze has offered them 'beauty at an affordable
price', making them look and feel beautiful.

Research and consumer visits have shown that the desire for great
fragrance featured highest in the daily beauty regime of discount-soap
users. Breeze explores this through the proposition of 'scent in a soap-
Scent ka kamaal, ab sabun mein' and explicitly propagates the brand
promise of the "Hameshaa kuchh extra". It delivers all this and still
matches consumer's needs in terms of price and quantity offered, staying
true to its word.

Breeze has been enriched with 19 special scent oils, which ensure
that one smells good for a long time through the day. Introduced in
variants like Scent Magic, Scent Magic Lime, and Scent Magic Sandal,
Breeze strives towards fulfilling the company's mission of being inventive
in creating value.

13
(2) Dove Shop

Dove soap, which was launched by Unilever in 1957, has been

available in India since 1995. It provides a refreshingly real alternative for
women who recognize that beauty is not simply about how you look, it is
about how you feel.

The skin's natural pH is slightly acidic 5.5-6. Ordinary soaps tend to be

alkaline, with pH higher than 9. Dove is formulated to be pH neutral (pH
between 6.5 and 7.5) and to be mild on skin. This makes it suitable for all
skin types for all seasons. While Dove soap bar is widely available across
the country, Dove Body Wash is available in select outlets.

Globally, Dove has been extended to many other countries. Since the
1980s, for example, Unilever has launched a moisturizing body-wash,
deodorants, body lotions, facial cleansers and shampoos and conditioners,
providing a comprehensive range of solutions to bring out true inner
beauty.

14
(3) Hamam soap

When it comes to soaps, Hamam is considered to be the most

reliable option. Launched in 1934, Hamam has traditionally been a soap
that takes care of your skin in a natural way.

According to a research conducted By Indica Research in May 2003,

78% of Doctors in Tamil Nadu recommend Hamam.

Besides being a perfectly balanced soap, Hamam takes on a very

modern and trendy look. Hamam's enhanced fragrance now provides a
longer lasting freshness. The new attractive oval shaped Hamam comes in
an attractive and modern packaging. The ingredients that are used in
Hamam - Neem, Tulsi and Aloe Vera - by themselves have great
therapeutic values. Hamam, the brand is very true to its tagline that says,
"Everything in life is about balance".

15
(4) Lifebuoy soap

Making a billion Indians feel safe and secure by meeting their health
and hygiene needs is the mission of Lifebuoy.

The world's largest selling soap offers a compelling health benefit to

the entire family. Launched in 1895, Lifebuoy, for over a 100 years, has
been synonymous with health and value. The brick red soap, with its
perfume and popular Lifebuoy jingle, has carried the Lifebuoy message of
health across the length and breadth of the country.

The 2002 and 2004 relaunches have been turning points in its
history. The new mix includes a new formulation and a repositioning to
make it more relevant to both new and existing consumers.

Lifebuoy is now a milled toilet soap with a new health fragrance and
a contemporary shape. The new milled formulation offers a significantly
superior bathing experience and skin feel. This new mix has registered
conclusive and clear preference among existing and new users.

The new Lifebuoy is targeted at today's discerning housewife with a

more inclusive "family health protection for my family and me"
positioning. Lifebuoy has made a deliberate shift from the male, victorious
concept of health to a warmer, more versatile, more responsible benefit
of health for the entire family. At the upper end of the market, Lifebuoy
offers specific health benefits through Lifebuoy Gold and Plus. Lifebuoy
Gold (also called Care) helps protect against germs which cause skin
blemishes, while Lifebuoy Plus offers protection against germs which
cause body odour.

16
(5) Liril soap

For 28 years, freshness has been clearly identified with one name –
Liril. Liril expressions have always set trends whether it is a bathing
beauty in a waterfall or "Oof Yu Maa!" The energy and excitement levels
associated with the brand have to be experienced to be believed with
changing times. Liril has donned many avatars; Presently, Liril Soft Aloe
Vera & Lime, Liril Icy Cool and Liril Orange splash are making waves.

17
(6) Lux soap

Lux stands for the promise of beauty and glamour as one of India's
most trusted personal care brands. Lux continues to be a favorite with
generations of users for the experience of a sensuous and luxurious bath.

Since its launch in India in the year 1929, Lux has offered a range
of soaps in different sensuous colors and world class fragrances. 2003
saw one of the biggest milestones in the history of Lux. From being just a
beauty soap of film stars, Lux recognized the need for a compelling
message about beauty that would resonate with women of today.

Lux is available in four different variants – Exotic flower petals and

Jojoba Oil, Almond Oil and Milk Cream, Fruit Extracts and Honey in Milk
Cream and Sandal Saffron in Milk Cream.

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(7) Pears soap

Introduced in India in 1902, Pears soap has no equal. It is gentle

enough, even for baby's skin.

Pears is manufactured like any other soap, but unlike in

conventional soaps, the glycerine is retained within the soap. That is the
cause if its unique transparency. After manufacturing, the soap is
mellowed under controlled conditions over weeks. At the end of this
maturing process, it is individually polished and packed in cartons.

Today Pears is available in three variants - the traditional amber

variant, a green variant for oil control and a blue variant for germ
protection.

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(8) Rexona soap

Rexona is one of India's pioneer brands in family soaps. Launched

in 1947, it was positioned as a natural skin care soap to give silky,
glowing skin.

Since then the product has been constantly improved to keep up

with the expectations of the consumers.

In 1989 coconut was introduced in Rexona for the first time to

strengthen the overall skincare appeal of the brand. Rexona has now
been relaunched with cucumber extracts, in addition to coconut oil and
moisturizing milk cream. Its creamy lather purifies the skin, leaving it
clear and flawless. It has also been enhanced with a perfume that lingers
well after a bath

Rexona is one of India's pioneer brands in family soaps. Launched

in 1947, it was positioned as a natural skin care soap to give silky,
glowing skin.

Since then the product has been constantly improved to keep up

with the expectations of the consumers.

In 1989 coconut was introduced in Rexona for the first time to

strengthen the overall skincare appeal of the brand. Rexona has now
been relaunched with cucumber extracts, in addition to coconut oil and
moisturizing milk cream. Its creamy lather purifies the skin, leaving it
clear and flawless. It has also been enhanced with a perfume that lingers
well after a bath.

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(9) Ayush soap

Ayush was launched in 2002. With Ayush HLL brings to you a range
of Ayurvedic Health Care & Personal Care Products with a superior
sensory experience, scientifically tested and proven functionality and
international standards of quality and safety, for a uniquely pleasurable
and holistic Ayurvedic experience.

For the first time, the eternal truths of Ayurveda and the rigours of
modern science have been combined. The Ayurvedic purity of Ayush's
formulation is endorsed by Arya Vaidya Pharmacy, Coimbatore.

The Ayush range comprises shampoos, hair oil, skin cream, soap
and nutritional supplements.

The Ayush Therapy Centers provide personalized service and advice

in positive health and stress relief, aches and pain relief, skin and hair
care and weight loss consultation.

21
DETERGENTS

(1) Rin

Every Indian woman will tell you how her clothes dazzle with the
power of Rin. The lightning flash mnemonic with the famous baseline
'Whiteness Strikes with Rin' is remembered till date. The dazzling flash of
light has become a synonym with the brand, ever since this iconic brand
was launched in 1969.

With the launch of 'Rin Advanced', the brand has elevated its
relationship with its consumers to a higher plane, reaffirming their faith in
the brand, by giving them superior cleaning, incomparable white clothes
and self-confidence which comes only from wearing spotless clean
clothes!

22
(2) Wheel

Wheel is India's number one detergent brand. Launched in 1987, it

cleans effectively with lesser effort, making a laborious chore like washing
light and easy. Moreover, Wheel does not burn hands or harm clothes like
some other detergents, which contain a high percentage of soda.

Ever since its relaunch in 2001, with the new positioning of 'best
clean with less effort', Wheel has been growing strongly. Research
showed that consumers seek a solution to heavy duty laundry, like bed
sheets and curtains. Developing on this insight, wheel sought to eliminate
the trouble of tough dirt or heavy-duty laundry. Mass market consumers
have welcomed the solution, making it the number one.

23
(3) Surf excel

A pioneer in the Indian detergent powder market, Surf Excel has

constantly upgraded itself over the years, to answer the constantly
changing washing needs of the Indian homemaker. Today Surf Excel
offers outstanding stain removal ability on a wide range of stains. This
means that mothers now have the freedom to let their kids experience life
without worrying about stains.

Surf Excel quick wash is powered with a path-breaking technology-

it reduces water consumption and time taken for rinsing by 50%. It is a
significant benefit, given the acute water scarcity in most of India.

Surf Excel is available in 3 variants: Surf Excel Blue, Surf Excel

Quick Wash and Surf Excel Automatic. So whatever be the need, “Surf
Excel hai na”. Surf Excel Automatic is formulated with high quality
phosphate builders and multi-active surfactant system to deliver superior
clean in washing machine wash protocol. Even under stressed wash
conditions of high soiling and full load, Surf Excel Automatic is designed to
provide excellent detergency and a very good wash.

In addition, Surf Excel Automatic also contains detergency aids such

as anti-redeposition agents and optical brighteners. This formulation is
further fortified with colour safe bleach system and enzymes for superior
stain removal in washing machines.

24
HAIR CARE SHAMPOOS

(1) Sunsilk Natural

Launched in 1964, Sunsilk is the largest beauty shampoo brand in

the country. Positioned as the 'Hair Expert', Sunsilk has identified
different hair needs and offers the consumer a shampoo that gives her
the desired results.

The benefits are more compelling and relevant since the variants
are harmonized in terms of the product mix - fragrance, colour and
ingredients are all well linked to cue the overall synergy. The range comes
in premium packaging and design. The accent is on "It knows you, and
hence knows exactly what your hair needs".

25
(2) Clinic

Clinic Plus Health shampoo was launched in India in the year 1987.
It is India's largest selling shampoo, offering the five most important hair
health benefits: strengthens weak hair, prevents hair breakage, softens
rough dry hair, shine for thick and healthy hair, and contains anti-
dandruff ingredient.

The franchise also includes Clinic All Clear Total, first introduced in
1996. It is a dual shampoo – it not only fights the last dandruff flake, but
also adds back lost nutrients to make hair healthy and beautiful. Clinic All
Clear Total is a dandruff solution for everyday use.

26
 SWOT ANALYSIS OF HLL

 STRENGTHS

HLL enjoys a formidable distribution network covering over 3400

distributors and 16 million outlets. This helps them maintain heavy
volumes, and hence, fill the shelves of most outlets. The new sales
organization named 'One HLL' brings "Household and Personal Care" and
foods distribution networks together, thereby aligning all the units
towards the common goal of achieving success. HLL has been
continuously able to grow at a rate more than growth rate for FMCG
Sector, thereby reaffirming its future stronghold in Indian market.

Project Shakti - Rural India is spread across 627,000 villages and

possesses a serious distribution challenge for FMCG Cos. HLL has come up
with a unique and successful initiative wherein the women from the rural
sector market HLL products, and hence, are able to reach the same
wavelength as of the common man in village. Apart from product reach,
the initiative also creates brand awareness amongst the lower strata of
society. This has brought about phenomenal results.

27
  WEAKNESSES

HLL's market dominance, originating from its extensive reach and

strong brand presence, allowed it to raise the prices even as raw
materials were getting cheaper. Hence, though the volumes decreased,
the margins grew, and company was able to earn more profits. But higher
margins attracted competition in areas of operations. HLL's strategy
remained focused on creating power brands and earning higher margins.
It was not left with any other option but to try cutting down the costs in
order to protect volumes, if not increase it.

As shown in above figure, the key differentiators for an FMCG player

are ability to call shots and pricing power, and HLL has shown weakness
over both these factors. HLL's weakness was its inability to transform its
strategies at the right time. They continued with the same old strategy

28
which helped them gain profits but was not genuine in this changed
environment. HLL's risk aversion and market myopia led to stagnation of
business, and ferocity of competition forced it into a defensive mode. Lack
of pricing power in core business and absence of growth drivers have put
HLL on a deflationary mode.

 OPPORTUNITIES

India is one of the world's largest producers of FMCG goods but its
exports are miniscule as compared to production. Though Indian Cos.
have been going global, their focus is more towards Asian countries
because of the similar preferences. HLL is one of the top companies
exporting FMCG goods from India. An expansion of horizons towards more
and more countries would help HLL grow its consumer base and
henceforth the revenues.

Well-placed to take advantage of future FMCG Growth - HLL reach

out 80% of 207 million households in the country through various brands.
It has a very well-defined product portfolio spread across many product
categories.

 THREATS

ITC has reduced its dependence on the cigarettes business -

Contribution of the core business in revenues has come down from 87%
in FY99 to 70% in FY05. Over a period of five years, ITC has extended its
presence into areas like foods, retailing, hotels, greetings, agri, paper,
etc. These are businesses that can give it growth impetus in the long run.
With ITC gaining momentum in each of these businesses, it is turning into
a consumer monolith, and hence, the greatest threat to HLL's Business.

SSKI India has gone on to say, "We maintain Out performer on ITC
with a price target of Rs. 2200, while our under performer call on HLL
remains unaltered (price target of Rs. 160)."

29
 PROCTER & GAMBLE

HISTORY

1837 Neither William Procter nor James Gamble ever intended to settle in
Cincinnati. Although the city was a busy center of commerce and industry
in the early nineteenth century, William, emigrating from England, and
James, arriving from Ireland, were headed farther west.

Despite their intentions, however, both men ended their travels when
they arrived at the Queen City of the West—William took care of his ailing
wife, Martha, who soon died, and James sought medical attention for
himself.

William Procter quickly established himself as a candle maker. James

Gamble apprenticed himself to a soap maker. The two might never have
met had they not married sisters, Olivia and Elizabeth Norris, whose
father convinced his new sons-in-law to become business partners. In
1837, as a result of Alexander Norris' suggestion, a bold new enterprise
was born: Procter & Gamble.

On April 12, 1837, William Procter and James Gamble start making and
selling their soap and candles. On August 22, they formalize their
business relationship by pledging $3,596.47 apiece. The formal
partnership agreement is signed on October 31, 1837.

1850 The Moon and Stars began to appear in the 1850s as the unofficial
trademark of Procter & Gamble. Wharf hands used the symbol to
distinguish boxes of Star Candles. By the 1860s, the Moon and Stars
appeared on all Company products and correspondence. Once a staple of
the Company's product line, candles declined in popularity with the
invention of the electric light bulb. The Company discontinued candle
manufacturing in the 1920s.

1924 A market research department was created to study consumer

preferences and buying habits—one of the first such organizations in
history.

1931 P&G's brand management system began to take shape in the late
1920s. In 1931, Neil McElroy, the Company's Promotion Department
Manager, created a marketing organization based on competing brands
managed by dedicated groups of people. The system provided more
specialized marketing strategies for each brand and Procter & Gamble's
brand management system was born.

30
1986 The Company developed a new technology that enabled consumers
to wash and condition their hair using only one product. Pert Plus/Rejoice
shampoo quickly became one of the leading worldwide shampoo brands.

1987 P&G celebrated its 150th anniversary. The Company ranked as the
second oldest company among the 50 largest Fortune 500 companies.

1990 Most of the laundry detergent brands were reformulated to

incorporate P&G's compact technology. Introduced in Japan with the
Cheer and Ariel brands, the technology was expanded to 36 brands in 20
different countries during the year.

1991 The Company introduced a new logo and word mark to provide a
more contemporary and consistent global look.

1995, Procter & Gamble Home Products enters the Hair care Category
with the launch of Pantene Pro-V.

2000, Procter & Gamble Home Products introduced Tide Detergent

Powder - the largest selling detergent in the world.

June 2000, Procter & Gamble Home Products Limited launched Pantene
Lively Clean its unique Pro-Vitamin formula cleans oil-build up, dirt and
grime in just one wash, delivering lively, free-flowing and sparkling-clean
hair.

August 2000, Procter & Gamble Home Products Limited launched New
Ariel Power Compact detergent with a new global technology that
breathes new life into clothes, by removing dinginess from them and
restoring the original colors of the fabric, by detecting and removing
deposits which are left behind from successive washes.

September 2001, Procter & Gamble Home Products launched New

Pantene Pro-V range of five shampoos in India which gave consumers the
look they want Smooth & Silky for straighter hair, Volume & Fullness for
thicker hair, Balanced Clean for shinier hair, Lively Clean for livelier hair
and Anti-Dandruff for dandruff-free hair.

April 2002, Procter & Gamble Home Products Limited announced the
launch of a special Ariel Bar Refund Offer along with its new Advanced
Ariel Compact.

November 2002, Procter & Gamble Home Products Limited launched

Head & Shoulders Naturally Clean, a new variant in its Head & Shoulders
range of Shampoos especially for Tamil Nadu, Kerala, Andhra Pradesh,
Karnataka and West Bengal. Its Smart ZPT combined with Natural Citrus
(lemon) extracts removes 100% dandruff and rinses oil and stickiness
from the scalp, giving light, loose, free flowing hair.

31
June 2003, Procter & Gamble Home Products Limited launched Pampers
- world’s number one selling diaper brand with sales of US$ 6 billion
annually. Pampers provides superior dryness for uninterrupted overnight
sleep, with just one pampers diaper. In India, Pampers Fresh & Dry is
available in a variety of three sizes – 4s, 10s and 25s.

July 2003, Procter & Gamble Home Products Limited launched Pantene
Long Black, the ultimate solution for achieving the Long and Black hair
look, and Head & Shoulders Silky Black - the only shampoo in India to
offer the dual benefits of 100% dandruff-free as well as silky black hair.

September 2003, Procter & Gamble Home Products Limited announced

that its superior quality Tide sachet is now available at Re. 1 per sachet
and its Ariel sachet at Rs. 2 per sachet, thus making the world’s best
detergents available at lower prices.

January 2004, Procter & Gamble Home Products Limited announced the
launch of Rejoice – Asia’s No. 1 shampoo, in India. Rejoice’s patented
Micro-Silicone conditioning technology gives twice as smooth, and easy to
comb hair versus ordinary shampoos, at affordable prices in 100 ml
bottles and 7.5 ml sachets.

March 2004, Procter & Gamble Home Products Limited reduced the
prices of Ariel and Tide bags (large packs) by 20-50%, while maintaining
the superior quality. The superior quality one kg pack of Tide now cleans
a family’s one month laundry in just Rs.23/-, while a one kg pack of Ariel
cleans a family’s one month laundry in just Rs.50/-.

April 2004, Procter & Gamble Home Products Limited announced the
launch of Pantene Hair Fall Control, which is designed to free women of
their hair fall concerns by reducing hair fall due to breakage by up to 50%
within just two months, thus giving them stronger, thicker looking and
beautiful hair. The prices of Pantene 100ml and 200ml bottles were
reduced by 16%, offering superior value to consumers.

October 2004, Procter & Gamble Home Products Limited launched New
Pantene Amino Pro-V Complex shampoos, which makes hair ten times
stronger.

November 2004, Procter & Gamble Home Products Limited launched

New Tide Bar. The New Tide Bar is unique as compared to the available
detergent bars because of its three unique features: (i) It has green
speckles called Whiteons, which release a unique whitening action on
reacting with sunlight; (ii) Its technology also ensures that it lasts longer,
does not dissolve easily and delivers a good balance between bar-
hardness and ease of application on clothes and; (iii) It has a lemony &
refreshing fragrance that lingers on clothes hours after wash

32
 P&G’S PURPOSE

The company will provide branded products and services of superior

quality and value that improve the lives of the world's consumers. As a
result, consumers will reward us with leadership sales, profit, and value
creation, allowing our people, our shareholders, and the communities in
which they live and work to prosper.

P&G’S VALUES

P&G is its people and the values by which they live. The company
attract and recruit the finest people in the world. They build their
organization from within, promoting and rewarding people without regard
to any difference unrelated to performance. They act on the conviction
that the men and women of Procter & Gamble will always be their most
important asset.

 LEADERSHIP

• They are all leaders in their area of responsibility, with a deep

commitment to deliver leadership results.
• They have a clear vision of where they are going.
• They focus our resources to achieve leadership objectives and
strategies.
• They develop the capability to deliver their strategies and eliminate
organizational barriers.

 OWNERSHIP

• They accept personal accountability to meet their business needs,

improve their systems, and help others improve their effectiveness.
• They all act like owners, treating the Company's assets as their own
and behaving with the Company's long-term success in mind.

33
  INTEGRITY

• They always try to do the right thing.

• They are honest and straightforward with each other.
• They operate within the letter and spirit of the law.
• They uphold the values and principles of P&G in every action and
decision.
• They are data-based and intellectually honest in advocating
proposals, including recognizing risks.

 PASSION FOR WINNING

• They are determined to be the best at doing what matters most.

• They have a healthy dissatisfaction with the status quo.
• They have a compelling desire to improve and to win in the
marketplace.

 TRUST

• They respect their P&G colleagues, customers, and consumers, and

treat them as they want to be treated.
• They have confidence in each other's capabilities and intentions.
• They believe that people work best when there is a foundation of
trust.

34
 P&G’S PRINCIPLES

 They Show Respect for All Individuals

• They believe that all individuals can and want to contribute to their
fullest potential.
• They value differences.
• They inspire and enable people to achieve high expectations,
standards, and challenging goals.
• They are honest with people about their performance.

 The Interests of the Company and the Individual Are

Inseparable

• They believe that doing what is right for the business with integrity
will lead to mutual success for both the Company and the individual.
Their quest for mutual success ties us together.
• They encourage stock ownership and ownership behavior.

 They are Strategically Focused in their Work

• They operate against clearly articulated and aligned objectives and

strategies.
• They only do work and only ask for work that adds value to the
business.
• They simplify, standardize, and streamline their current work
whenever possible.

 They value Personal Mastery

• They believe it is the responsibility of all individuals to continually

develop themselves and others.
• They encourage and expect outstanding technical mastery and
executional excellence.

35
  They Seek to Be the Best

• They strive to be the best in all areas of strategic importance to the

Company.
• They benchmark our performance rigorously versus the very best
internally and externally.
• They learn from both their successes and their failures.

 Innovation Is the Cornerstone of Our Success

• They place great value on big, new consumer innovations.

• They challenge convention and reinvent the way they do business to
better win in the marketplace.

 Mutual Interdependency Is a Way of Life

• They work together with confidence and trust across business units,
functions, categories, and geographies.
• They take pride in results from reapplying others' ideas.
• They build superior relationships with all the parties who contribute
to fulfilling our Corporate Purpose, including their customers, suppliers,
universities, and governments.

 They are Externally Focused

• They develop superior understanding of consumers and their needs.

• They create and deliver products, packaging, and concepts that
build winning brand equities.
• They develop close, mutually productive relationships with their
customers and our suppliers.
• They are good corporate citizens.

36
 PRODUCTS

HAIR SHAMPOOS

(1) Head & Shoulder

Head & Shoulders is the world’s No. 1 Anti-dandruff shampoo and now
has become a part of Indian homes as well. This best-ever anti-dandruff
shampoo has an improved formula, which offers the fine combination of
anti-dandruff efficacy and hair conditioning. What makes the new Head &
Shoulders its best so far is its break-through formula which covers the
scalp more effectively to remove even the tiniest flake of dandruff, while
the new conditioning property keeps hair looking beautiful.

Head & Shoulders now comes in a new pack-design and logo in six
variants:

• Head & Shoulders Smooth & Silky: Makes hair smoother and silkier
• Head & Shoulders Refreshing Menthol: Removes scalp itch and
provides cool sensation
• Head & Shoulders Clean and Balanced: Provides the right balance of
cleaning and conditioning
• Head & Shoulders Silky Black: Formula with Black Sesame and
Walnut Extract nourishes your hair and scalp from within to make black
hair look silky.
• Head & Shoulders Naturally Clean: For cleaning up oil, dirt and
grime on the scalp. H&S Naturally Clean transforms unhealthy, sticky
hair into healthy, dandruff free and naturally clean hair. Currently sold
only in South and East India.
• Head & Shoulders Nourishing Aloe Vera (Launched By Preity Zinta)
for Dandruff-Free, Beautifully Growing Hair

37
 Head & Shoulders is available in three different pack sizes - 200 ml, 100
ml and 7.5 ml sachets.

(2) Pantene Pro-V

New Pantene Range with Amino Pro-V Complex makes Hair Ten
Times Stronger against damage. Deposits back essential Aminos that hair
loses due to daily weathering. The only shampoo that deposits on to hair
a unique combination of Pro-Vitamins and three essential aminos that hair
loses due to daily weathering, making hair ten times stronger, and
restoring its lost beauty. The New Pantene Amino Pro-V Complex also
comes with an all new refreshing exotic fruity fragrance called Asian Zest,
created specially to suit Asian women.

Amino Pro-V Complex range of shampoo comes in five variants

suited for individual needs: Pantene Smooth & Silky, Volume & Fullness,
Long Black, Hair Fall Control, and Lively Clean; and is available at all
general and chemists stores at a price of Rs. 98 for a 200ml. bottle; Rs.
51 for a 100ml. bottle and Rs. 3 for a 7.5ml sachet.

New Pantene Range with Amino Pro-V Complex, Makes hair ten times
stronger against damage. New Pantene Shampoo with Goodness of
Coconut Oil which makes hair strong against damage with regular use.
New Pantene with its Micro-Vita technology ensures optimized
conditioning to suit varied Indian hair care needs and provides
conditioning benefits similar to Coconut Oil - as it penetrates deep into
the roots, strengthens each strand against damage, giving smoother,
shinier and stronger hair against damage.

The New Pantene(R) is available at general and chemists stores

across India and continues to be priced at Rs. 98 for a 200ml. bottle, Rs.
51 for a 100ml. bottle, and Rs. 3 for a 7.5ml sachet.

38
(3) Rejoice

P&G announces the launch of Asia’s No. 1 shampoo – Rejoice, in

India. Rejoice with its patented ‘Micro-Silicone’ conditioning technology
gives twice as smooth, and easy to comb hair versus ordinary shampoos.

Rejoice has a strong global heritage and is the No. 1 i.e., the largest
selling shampoo in Asia (China, Japan, Singapore, Thailand, Philippines,
Hong Kong, Indonesia, Malaysia, Vietnam, etc.). It is loved by consumers
in 85 countries.

Rejoice has been launched by P&G to specifically meet the unique

needs of Indian consumers. It’s patented ‘Micro-Silicone’ conditioning
technology gives twice as smooth, detangled and easy to comb hair than
ordinary shampoos or the combination of home remedies such as henna,
amla, reetha and shikakai. The shampoo’s unique high-tech suspension
system holds the surfactant and conditioner together, thus ensuring both
wet and dry conditioning. Wet conditioning makes it easy to comb hair
when wet, while dry conditioning ensures that hair remains smooth even
after it has dried up, thus making tangles a thing of the past.

P&G has launched Rejoice in three unique variants:

• Rich: Specially formulated with higher conditioning to make hair

extra smooth and superbly easy to comb. Suitable for those with dry
hair.
• Silky Clean: Specially formulated for hair which is oiled frequently.
It provides gentle, effective cleaning of oil and dirt from hair and then
conditions the hair to make it silky smooth. Suitable for those who oil
hair/ whose hair tends to get naturally oily or sticky.
• Complete: Specially formulated as a 3-in-1 shampoo that fights
dandruff, and gives silky smooth hair that smells great all day long.
Suitable for the entire family.

39
 Rejoice shampoo is available at an affordable price in 7.5 ml sachets,
100 ml. and 200 ml. bottles.

DETERGENTS

(1) Ariel

Superior cleaning in a choice of Two Fragrances – Ariel Spring Clean

& Ariel Fresh Clean Another Breakthrough Innovation from Ariel for the
Indian Family

Procter & Gamble, the makers of leading international fragrances

such as Hugo Boss, Lacoste, Old Spice and Valentino now make your wish
come true, with the launch of Ariel in a choice of two exciting fragrances –
Ariel Spring Clean with a floral fragrance, and Ariel Fresh Clean with a
refreshing fragrance. The two unique fragrances of Ariel now offers Indian
consumers an unbeatable combination of ‘superior cleaning’ and ‘a choice
of fragrances’ with the launch of Ariel Spring Clean and Ariel Fresh Clean.

Ariel is the world’s leading detergent and epitomizes ‘stain removal’.

Introduced in India in 1991, Ariel has continuously led other detergents in
product innovation. It was the first to bring the ‘compact detergent’
technology in India; the enzyme technology for superior and safe stain-
removing power; the proprietary ‘smart eyes’ technology which helps
detect and remove stains better than any other detergent; and now for
the first time superior cleaning in a choice of fragrances. Ariel contains
safe ingredients for normal fabrics and skin under recommended usage
conditions for laundry, and meets the Company’s stringent human and
environmental safety standards.

Ariel in its choice of two fragrances – Spring Clean and Fresh Clean,
is available at all leading general and chemist stores and the price

40
remains unchanged at Rs. 145 for 1.5kg; Rs. 99 for 1kg; Rs. 50 for
500gm; Rs. 22 for 200gm and Rs. 2 for a 20gm sachet.

(3) Tide

Tide is the World’s Oldest & Most Trusted Detergent brand and is
the Market Leader in 23 Countries around the world.

Launched in India in mid-2000, Tide provides ‘Outstanding

Whiteness’ on white clothes & excellent cleaning on coloured clothes as
well. This is possible, due to its ‘anti-redisposition’ global technology
which Tide employs. These Anti-redeposition Agents help keep soils from
re-settling on clothes after they have been removed during the wash
itself. Tide’s Fabric Whitening Agents deposit on fabrics during laundering
to enhance brightness of light coloured fabrics. Tide improves the washing
experience through its pleasant "lemon" perfume that lingers on the
clothes hours after the washing and leaves clothed bright white and
prevents them from turning yellow. It does not bleach or remove colour
from a garment.

Creative Advertising starring Shekhar Suman, ‘White Stripe’

Campaign and the recent ‘Bagbhan’ Commercial have help made Tide a
household name.

Tide enables the homemaker to spend more time with her family and
keeps her family looking their best through clean and 'bright white'
clothes. It is available in packs of 200 gm, 500 gm, 1 kg and 2 kg and 20
gm single use sachet.

41
42
 SWOT ANALYSIS OF P&G

 STRENGTHS

 Subsidiary of global FMCG giant that was established in

1837.Started Indian operations by acquiring Richardson Hindustan in
1885

 Wider portfolio in western markets to be launched in India soon.

E.g. entering oral care segment by introducing ‘crest’ skin care
segment by introducing Olay, Noxzema etc.

 P&G has speeded up innovations in products by extensive research

for new products by its R&D.

 Provides affordable products despite heavy price cuts and price

wars with HLL. P&G slashed prices of Ariel & Tide by 50% and
improved market share to 10% form 6%

 Aggressive small packs/sachets sales strategy as sachets constitute

around 65-70% of shampoo sales. More price cuts in sachets to earn
higher profits by higher sales volume.

 Ariel was the first compact detergent launched in the country in

1991. It introduced enzyme technology, smart eyes technology etc for
first time in India.

 Brand endorsement of Ariel by personalities like Shabana Azmi,

Sharmila Tagore, Smriti Irani etc.

 Healthy growth rate maintained in hair care segment despite price

wars. Market share increased to 20% from 16%.

 Distribution agreements with Marico to help reach wider market for

its products.

43
 WEAKNESSES

 Delay in formulation of country specific strategy. For

further product launches in India in case of skin care and premium hair
care segments.

 Clutter intense competition form rivals HLL, Nirma etc

and competition amongst the brands itself restricting volumes in Hair
Care and Laundry segments.

 High input costs due to increase in price of Oil,

chemicals, etc.

 Some of the acquire brands did not do well e.g. Clairol

in Hair Care segments as company has too many brands in each
segments.

 Consumers switching to other brands due to frequent

price cuts and price erosions of competitors products.

 Due to price cuts by rivals. Companies market share in

premium end detergent market declined from 7.1% to 6% overall.

 OPPURTUNITIES

 Opportunities in rural area through rural distribution networks and

after making price affordable.

 Organized retailing will give competitive advantage as they will have

greater say and display in shelf space of retailing giant.

 Introducing new brand across globe and manufacturing units to be

established in tax free zones.

 Saving cost by outsourcing the engineering and fabrication works

and devoting time to core business.

44
 Exports in Asian countries which have huge population and market
potential is tremendous.

 THREATS

 Heavy price war in detergent & Laundry business has resulted in

decline in market share of Ariel.

 Saturation of detergent market may lead to no further increase in

market share and increase in sales

 Present rivalries at lower end e.g. Nirma

 Threats from look-alike products & cheap products.

 Challenges from multiplexes and mobiles that hinder spending on

FMCG goods.

45
 NIRMA

HISTORY

Nirma is one of the few names - which is instantly recognized as a

true Indian brand, which took on mighty multinationals and rewrote the
marketing rules to win the heart of princess, i.e. the consumer. Nirma,
the proverbial ‘Rags to Riches’ saga of Dr. Karsanbhai Patel, is a classic
example of the success of Indian entrepreneurship in the face of stiff
competition. Starting as a one-man operation in 1969, today, it has about
14, 000 employee-base and annual turnover is above Rs.2500 crores.

India is a one of the largest consumer economy, with burgeoning

middle class pie. In such a widespread, diverse marketplace, Nirma aptly
concentrated all its efforts towards creating and building a strong
consumer preference towards its ‘value-for-money’ products.

It was way back in ‘60s and ‘70s, where the domestic detergent
market had only premium segment, with very few players and was
dominated by MNCs. It was 1969, when Karsanbhai Patel started door-to-
door selling of his detergent powder, priced at an astonishing Rs.3 per kg,
when the available cheapest brand in the market was Rs.13 per kg. It was
really an innovative, quality product – with indigenous process, packaging
and low-profiled marketing, which changed the habit of Indian
housewives’ for washing their clothes. In a short span, Nirma created an
entirely new market segment in domestic marketplace, which is,
eventually the largest consumer pocket and quickly emerged as
dominating market player – a position it has never since relinquished.
Rewriting the marketing rules, Nirma became a one of the widely
discussed success stories between the four-walls of the B-school
classrooms across the world.

The performance of Nirma during the decade of 1980s has been

labeled as ‘Marketing Miracle’ of an era. During this period, the brand
surged well ahead its nearest rival – Surf, which was well-established
detergent product by Hindustan Lever. It was a severing battering for
MNC as it recorded a sharp drop in its market share. Nirma literally
captured the market share by offering value-based marketing mix of four
P’s, i.e. a perfect match of product, price, place and promotion.

Now, the year 2004 sees Nirma’s annual sales touch 800,000 tones,
making it one of the largest volume sales with a single brand name in the
world. Looking at the FMCG synergies, Nirma stepped into toilet soaps
relatively late in 1990 but this did not deter it to achieve a volume of
100,000 per annum. This makes Nirma the largest detergent and the

46
second largest toilet soap brand in India with market share of 38% and
20% respectively.

It has been persistent effort of Nirma to make consumer products

available to masses at an affordable price. Hence, it takes utmost care to
provide finest products at the most affordable prices. To leverage this
effort, Nirma has gone for massive backward integration along with
expansion and modernization of the manufacturing facilities.
The focal objective behind modernization plan is of up gradation with
resource-savvy technology to optimize capabilities. Nirma’s six production
facilities, located at different places, are well equipped with state-of-art
technologies. To ensure regular supply of major raw materials, Nirma had
opted for backward integration strategies. These strategic moves allowed
Nirma to manage effective and efficient supply-chain.

Nirma has always been practiced ‘value-for-money’ plank. Nirma

plans to extend the same philosophy in categories as commodity food
products, personal care products and packaged food. Distinct market
vision and robust infrastructure allowed Nirma to have cost leadership.
Apart from this, lean distribution network, umbrella branding and low
profile media promotions allowed it to offer quality products, at affordable
prices.

In present scenario, an inspiring 59-year-old persona, Dr.

Karsanbhai K. Patel, leads Nirma, playing role of key strategic decision-
maker, whereas his next generation has already skilled management
capabilities. Shri Rakesh K Patel – a qualified management graduate, is
spearheading the procurement, production and logistic functions, whereas
Shri Hiren K Patel – a qualified Chemical engineer and management
graduate, heads the marketing and finance functions of the organization.
Shri Kalpesh Patel, Executive Director, leads the professional
organizational structure.

Shri Karsanbhai has been awarded an Honorary Doctorate by

Florida Atlantic University, Florida, USA in the year 2001 in recognition of
his exceptional accomplishments as a philanthropist and businessman.

This world has also recognized his ability, acumen and wisdom and
in recognition of the services rendered by him in his various capacities.
Dr. Karsanbhai Patel has also served as a Chairman for two terms to the
Government of India’s Development Council for soaps and detergents, as
a Member of Bureau of Indian Standards Committee for Soaps and
Detergent Industries and President of Gujarat Detergent Manufacturers
Association.

MILESTONES OF SUCCESSS

• One of the world's largest and most integrated manufacturer of

detergent and toiletries
• largest player of the Indian detergent market with a share of 38%

47
• second largest toilet soap marketer of the country with a share of
20%

HERITAGE

In scorching heat of 1969, a son of small-time farmer was trying to

mix Soda Ash and few other intermediaries, to make a detergent produce.
He was a qualified Science graduate and was working as junior chemist in
Government laboratory. As a moonlighting activity, he was making
detergents in the 100 Sq. Ft. back yard of his home, using bare hands
and bucket. Once the mixture is ready, he used to pack them in polythene
bag and was selling door-to-door… Gradually, the product became well
accepted in the consumer community, and the rest is known to one and
all… This is a success saga of a first generation entrepreneur, on his way
to create history in the Indian marketplace - that was Dr. Karsanbhai
Patel.

In a short span, he captured the domestic market, with a quality

product. He swiftly crafted low-to-medium consumer pockets – a whole
new consumer segment for detergent category. He took on mighty multi-
nationals and rewrote the marketing rules. In true sense, he spearheaded
the market revolution by offering innovative, ‘value-for-money’ products,
and changed the cloth-washing habit of Indian housewives - the
revolution called …“Nirma”.

From initial days, Nirma believed in value-for-money equation, in

creating and maintaining long-lasting relationships. It has always
remained committed to offer better products, at better value, for better
living

48
 VISION, MISSION & PHILOSOPHY

Nirma is a customer-focused company committed to consistently

offer better quality products and services that maximize value to the
customer.

This customer-centric philosophy has been well emphasized at

Nirma through:

 Continuously exploring & developing new products & processes.

 Laying emphasis on cost effectiveness.
 Maintaining effective Quality Management System.
 Complying with safety, environment and social obligations.
 Imparting training to all involved on a continuous basis.
 Teamwork and active participation all around.
 Demonstrating belongingness and exemplary behaviour towards
organization, its goals and objectives.

Nirma is a phenomenon and synonymous with Value for Money. The

brand transcends the specific dynamic of any particular product category,
which is best captured in its above mission statement - a statement of
sustained innovation, an unceasing effort to deliver better value to
consumers, through better product quality.

49
 PRODUCTS

DETERGENTS

(1) Nirma Washing Powder

This product created a marketing miracle, when introduced in the

domestic marketplace. In 1969, when the detergents were priced so
exorbitantly that for most of the Indians, it was a luxury item. Nirma
envisioned the vast Fabric Wash market segment and sensed a
tremendous potential therein. This product was priced at almost one third
to that of the competitor brands, resulting into instant trial by the
consumers. Owing to its unique environment-friendly, phosphate-free
formulation, the consumers became loyal to this brand, helping it to over-
take the decades’ old brands, in terms of volumes. This brand had been
ranked as the “Most widely distributed detergent powder brand in India”
as per All India Census of Retail Outlets carried out in 435 urban towns by
the AIMS (Asian Information Marketing & Social) Research agency. As per
the ORG-MARG Rural Consumer Panel [December 1998] survey,
Nirma brand has been ranked as highest in terms of penetration in
washing powder category.

50
(2) Super Nirma Washing Powder

Exploding the myth that ‘better quality always demands higher

price”, Nirma introduced a spray-dried blue coloured washing powder in
the premium segment, in 1996. Available in 25g, 500g and 1000g packs,
this product out-classed its competitor brands. Though, priced almost
40 % lesser, thus providing a very attractive ‘value-for-money’
proposition. This brand, within a short span of two years, had cornered
substantial market share in the premium detergent segment and
continues to perform well.

51
SOAPS

(1) Nirma Lime Fresh Soap

This product had created a sensational marketing history in the

Indian Toilet soaps market, when it was launched in 1997. Seventeen
million packs of Nirma Lime Fresh soap were sold in the very first month
of its soft launch. Packed in a poly coated 75 gm carton, which is printed
on the world’s best Cerruti 8-colour printing machine, this soap is
available in green colour. With a lime aroma that tingles in one’s sensory
buds for a long time, this soap contains 80% TFM. The product launch of
Nirma Lime Fresh had been extremely successful, being ranked as the
Seventh Most Successful Brand Launch for the year 1998, as ranked by
the Business Standard Marketing Derby, 1998. (as featured in The
Strategist Quarterly, July-September 1998).

52
(2) Nirma Beauty Soap

With its market promise to offer “Better Products, Better Value,

Better Living,” Nirma introduced ‘Nirma Beauty Soap’ in the year 1992.
Available in three different variants and pack sizes, this soap has a TFM
content of 70%. Due to its admirable perfume and a higher TFM content,
this brand, within a short span of five years, had achieved the status of
the third largest selling toilet soap brand and still continues its
outstanding performance.

53
(3) Nima Rose

The remarkable and phenomenal market response received by Nima

Rose soap within just two months of its launch once again proved the
merits of Nirma’s commitment towards its consumers. Nima Rose soap
has got an exceptionally soft rose fragrance – which remains around body
for a long time even after bath. The high TFM content of this product
allows a consumer to have pleasant bath. This brand had carved a niche
in its segment by achieving leadership position just within two months of
its launch. It is available in 100g and 150g pack sizes.

54
(4) Nima Sandal

Over the period, Indian toilet soap market has fragmented & has
seen emergence of prominent floral fragrance segments as Sandal, Rose,
Jasmine, etc. Nima Sandal is a one of such product in floral segment. This
toilet soap has 80% TFM content, with rich & exotic fragrance. It promises
benefits of Sandal oil & Turmeric powder. It is a premium product from
Nima stable and is available in 100g and 150g packs.

55
 SWOT ANALYSIS OF NIRMA

 STRENGTHS

 Strong Brand equity. Nirma is a Rs.17 billion umbrella brand

offering consumers a broad portfolio of products at multiple price
points in the Detergents, Soaps & Personal Care market.

 Produces a range of industrial chemical products which

primarily serve as raw material or intermediates for Soaps &
Detergents business.

 Market leadership in detergents market and fabric wash

industry and second largest player in Toilet soaps industry.

 Wide distribution network.

 Benefit of the brand name ‘Nirma’ in every product.

 It has a higher production strength and capacity plant.

 WEAKNESSES

 High interest burden.

 Less presence in premium segment.

 Lack global tie ups and thus lacking in export

markets.

 Common name that is (Nirma) in its products so

not able to keep optimum brand name.

56
 OPPURTUNITIES

 Exports.

 Acquisitions for strengthening its

distribution tie ups.

 Entry into other categories like

shampoos, toothpastes and fabric whiteners.

 THREATS

 MNC’s coming to India particularly in Toilet and

Soap industry.

 Emergence of small but strong regional players.

57
 REASONS TO STUDY FMCG

The Indian FMCG sector is the fourth largest sector in the economy
with a total market size in excess of US$ 13.1 billion. It has a strong MNC
presence and is characterized by a well-established distribution network,
intense competition between the organized and unorganized segments
and low operational cost. Availability of key raw materials, cheaper labour
costs and presence across the entire value chain gives India a competitive
advantage.

The FMCG market is set to treble from US$ 11.6 billion in 2003 to
US$ 33.4 billion in 2015. Penetration level as well as per capita
consumption in most product categories like detergent, skin care, hair
wash etc in India is low indicating the untapped market potential.
Burgeoning Indian population, particularly the middle class and the rural
segments, presents an opportunity to makers of branded products to
convert consumers to branded products.

The FMCG goods requires a good marketing strategies so as to

survive in the market. Also it is said that an India based company i.e.
Nirma has given a tough competition to the multinational companies in
the same sector in Indian market. Thus to understand that in such a
intensive competition, how the company’s form their marketing strategies
and increase their own share as well as the total market and to survive.

To understand how the companies form their strategies for

distribution channel and maintain the supply of the product so as to cover
larger market.

Thus the three companies HLL, P&G and Nirma have presence in
almost all the product lines with well established brands competing
fiercely against each other in each segment. The basis of comparison will
be across major segments of these companies’ products. Moreover, the
products of these companies are used by consumers with same set of
characteristics to a large extent and thus make comparison among
product lines possible.

58
 CHAPTER - 2

RESEARCH

METHODOLOGY

59
 OBJECTIVE OF SUTDY

 To know that which brand name come first to the mind of the
people, so as to know the awareness of the brands available in the
market for the products under study i.e. Detergents, Shampoos &
Bathing soap.

 To know which brand of Detergent, shampoos & Bathing soap are

used more by the people among the manufacturers like HLL, P&G and
Nirma.

 To know whether they frequently change the brand, they use or

not.

 To know who takes decision for choice of brand in the family.

 To know which parameters from the following are given importance

while purchasing the products under study?

(a) Price (b) Quality (c) Brand Name

(d) Smell (e) scheme

 To know the opinions of the people that whether MNC products are
of better quality or not.

 To know whether the respondent think that the MNC products are
overpriced or not.

 To know the opinion of the respondent regarding, ‘Can

Advertisement affect sale?’

 To know what people personally believe regarding the existence of

product like Fairness soaps and Shampoo’s to control hair fall.

 To know from which place people generally buy the products under
study.

60
 SOURCES OF DATA

(1) Secondary Data

Sources form where secondary data had been collected are,

 Websites of the Company

 Magazines
 Newspapers
 Other Websites
 Annual Reports of company
 General idea from the managers of the Malls and Owner’s of the
Grocery shops regarding the sales of brands under study.
(Details are mentioned in annexure)

(2) Primary Data

Primary data was collected from the people of different

parts of Ahmedabad by interviewing them and filling the questionnaire.

61
 QUESTIONNAIRE

 The questionnaire was structured in form and undisguised.

 The questions were framed in close – ended form so as to get

similar answers and analysis becomes easy.

 It was seen that the language of the questions framed was simple
and easy so as to avoid confusions and to attain more accuracy in
collecting data.

 It was taken care that questions were not framed in a way that
would go more personal to the person.

 It was seen that the general question were asked first and personal
questions were asked last.

 The number of questions in the questionnaire was kept less and

most of them contain supplementary options.

 SAMPLING METHOD

We adopted simple random sampling method to select sample

for the survey.

 SAMPLE SIZE

Among the different methods of selecting sample size like

Adhoc and Statistical, we have adopted the Adhoc method and decided
the sample size to be 300 for survey.

62
 LIMITATIONS

 The interviewers were not trained which would have lead to bias
results.

 Time taken for the survey was not enough to study the topic.

 The analysis was done manually and not by using technical software
as it is more costly

 The sample size taken for the survey i.e. 300 is not enough size for
the study of such a topic.

 The secondary data regarding market share was not available.

 There were certain respondents whose response was not good.

 There was no supervision done on the interviewers.

 No statistical techniques were used.

63
CHAPTER – 3

ANALYSIS

AND

FINDINGS

64
 DETERGENT THAT COMES TO THE MIND FIRST

28, 9%

61, 20% WHEEL

32, 11%

HENKO

SURF
20, 7%
NIRMA

TIDE

23, 8% ARIEL

RIN

93, 31%

43, 14%

(Ref. Annex – 1)

Based on the survey done it was observed that the brand

name ‘NIRMA’ was the brand that came to people’s mind first that covers
31% out of the total. i.e. 93 respondents out of 300 were influenced by the
name.

65
 PARAMETERS RANKED 1ST FOR DETERGENT
PURCHASE

221
250

200

150
NUMBER
100 40
29
50 10
0
PRICE QUALITY BRAND SCHEME
NAME
BRAND NAME

(Ref. Annex – 2)

Based on the question asked as to which parameter are important

for them while they purchase detergents. And on survey we found that
quality was given the highest importance while purchasing detergents
among the given parameters. i.e. 221 out of 300 respondents.

66
 SHAMPOO THAT COMES TO MIND FIRST

HEAD &
SHOULDER
9 20 SUNSILK
16 7%
3%
15 5%
CLINIC
5%
115
13 38% REJOICE
4%
PANTENE
14
5% NYLE

GARNIER
22
7% CHIK

AYUSH
32
11% LUX
14 VATICA
5% 30
10%

(Ref. Annex – 3)

Out of the total brands available in case of Shampoos the brand

name ‘Sunsilk’ was the first brand that came to people’s mind i.e. 38%
that results to 115 out of 300 respondents.

67
 PARAMETERS RANKED 1ST FOR SHAMPOO
PURCHASE

235
250

200

150
NUMBER
100
33
50 19
8 5

0
PRICE QUALITY BRAND SCHEME SMELL
NAME

BRAND NAME

(Ref. Annex – 5)

Out of the different parameters given to the respondents that is

Price, Quality, Brand Name, Scheme and Smell, Quality was chosen the
first parameter by 235 people out of 300 respondents.

68
 BATHING SOAP THAT COMES TO THE MIND FIRST

16, 5% 25, 8%
38, 13%
32, 11% DOVE
PEARS
LIRIL
15, 5% HAMAM
6, 2%
NIRMA
5, 2% LUX
9, 3% CINTHOL
SANTOOR
7, 2% LIFEBOUY
10, 3% DETTOL
AYUSH
8, 3%
NIVEA
110, 37% ALEOVERA
12, 4%
MARGO
7, 2%

(Ref. Annex – 6)

Lux brand of HLL has been seen as the most popular brand among
the soaps. It accounts for about 37% and 110 respondents out of the
total 300 surveyed while others resulted into smaller percentage.

69
 PARAMETERS RANKED 1ST FOR BATHING
SOAP PURCHASE

225
250

200

150
NUMBER
100
35
18
50 16
6
0
PRICE QUALITY BRAND SCHEME SMELL
NAME
BRAND NAME

(Ref. Annex – 8)

Parameter Quality was given the most importance amongst the all. It
came to about 225 respondents out of the total 300 who sees the quality first
while purchasing.

70
 INCOME GROUP

100001
50001 TO TO
100000 200000
80 109
27% 36%

LESS
ABOVE
THAN
200000
50000
82
29
27%
10%

(Ref. Annex – 9)

Out of the total 300 respondents 10% fell into the income group less
than 50000, 27% fell into 50001 to 100000,36% fell into 100001 to 200000
and 27% above 200000.

71
 BRAND'S PREFERED (DETERGENT)

90 78
80
70 61
NUMBER

60
50 44
39 38
40
30 25
20 15
10
0

S
A

L
F
E
IN

R
E
M

IE
R
ID
E
R

E
IR

R
T
H

H
S

A
N

T
O
CATEGORY

(Ref. Annex – 10)

Amongst the different brands preferred in case of Detergents Surf brand

was the first amongst the all that resulted into 78 respondents out of the 300
people.

72
 (Ref. Annex – 11)

LESS THAN 50000

WHEEL TIDE
9 4
31% 14%

NIRMA
3
10%
SURF
6
RIN 21%
ARIEL
3 OTHERS 2
10% 2 7%
7%

Income group of less than 50000 preferred Wheel as the most preferred
brand of detergent for their daily use. While others accounted to less than
25%.

50001 TO 100000

TIDE
WHEEL 11
12 14%
15%

NIRMA
12 SURF
15% 18
22%

RIN ARIEL
11 7
14% OTHERS 9%
9
11%

People who fell in the income group of 50001 to 100000 use Surf as
most preferred detergent for washing purpose.

73
 100001 TO 200000
RIN
19 NIRMA
17% 14
OTHERS 13%
1
1%

ARIEL
6
WHEEL
6%
27
24%
SURF
26 TIDE
24% 16
15%

Income group of 100001 to 200000 preferred Wheel and Surf as the

most preferred brand of detergent for their daily use. While others accounted
to less than 20%.

ABOVE 200000

TIDE
SURF
13
28
16%
34%

WHEEL
13
16%
ARIEL
10
12%
NIRMA
9
OTHERS
11% RIN
3
6
4%
7%

Income group of above 20000 preferred Surf as the most preferred

brand of detergent for their daily use. While others accounted to less than
20%.

74
 MNC PRODUCTS ARE OF BETTER
QUALITY

200 184
180
160
140
NUMBER

120
100 86
80
60
40 30
20
0
YES NO CAN'T SAY
CATEGORY

(Ref. Annex – 12)

Based on the question asked as to whether MNC products are of Better

Quality, most people preferred to answer as “YES” in comparison to not
agreeing.

75
 (Ref. Annex – 13)

LESS THAN 50000

NO
8
27%

YES
14
46%

CAN'T SAY
8
27%

Less than 50000 income group personally believed that MNC products
are of better Quality.

50001 TO 100000

NO
20
YES 25%
48
60%

CAN'T SAY
12
15%

500001 to 100000 income group personally believed that MNC products

are of better Quality.

76
 100001 TO 200000

YES
NO
67
34
62%
31%

CAN'T SAY
8
7%

100001 to 200000 income group personally believed that MNC products

are of better Quality.

ABOVE 200000

CAN'T SAY
3
3% YES
66
71%

NO
24
26%

Above 200000 income group personally believed that MNC products are
of better Quality.

77
 MNC PRODUCTS ARE OVER PRICED

250
203
200
NUMBER

150

100
69
50 28

0
YES NO CAN'T SAY
CATEGORY

(Ref. Annex – 14)

Based on the question asked as to whether MNC products are of Better

Quality, most people preferred to answer as “YES” in comparison to not
agreeing.

78
 (Ref. Annex – 15)

LESS THAN 50000

CAN'T SAY
3
10% YES
22
76%

NO
4
14%

Less than 50000 income group personally believed that MNC products
are of better Quality.

50001 TO 100000

NO
18
23%

YES
56
69%

CAN'T SAY
6
8%

50001 to 100000 income group personally believed that MNC products

are of better Quality.

79
 100001 TO 200000

NO
25
23%

YES
75
69%

CAN'T SAY
9
8%

100001 to 200000 income group personally believed that MNC products

are of better Quality.

ABOVE 200000

CAN'T SAY
10
11% YES
50
58%

NO
27
31%

Above 200000 income group personally believed that MNC products are
of better Quality.

80
 AGE

21 TO 30
84 31 TO 45
28% 110
36%

LESS
THAN 20 46 TO 60
ABOVE 74
26
9% 60 25%
6
2%

(Ref. Annex – 16)

Out of the total 300 respondents 9% fell into the age group less than 20,
28% fell into 21 to 30, 36% fell into 31 to 45 and 25% fell into 46 to 60 and
2% above 60.

81
 BRAND'S PREFERED Shampoos)

120 113
S
R 100
E
80
B
M 60 49
U 40 37
N 40 32

20 14 15

0
Sunsilk Rejoice Clinic Ayush Head & Pantene Others
Shoulder

BRANDS

(Ref. Annex – 17)

Amongst the different brands preferred in case of Shampoos Sunsilk

brand was the first amongst the all that resulted into 113 respondents out
of the 300 people.

82
 (Ref. Annex – 18)

AGE 18 TO 30

Others Sunsilk
18 35
16% 32%

Pantene
13
12% Rejoice
7
6%

Head &
Shoulder
Clinic
13
Ayush 19
12% 5 17%
5%

Among the different age group, the age between 18 to 30 prefers

sunsilk as the most used shampoo that accounted for 32% i.e. 35
respondents out of the 300.

83
 AGE 31 TO 45

Others
18
16% Sunsilk
46
41%

Pantene
14
13%

Rejoice
3
Head & 3%
Shoulder
14 Clinic
13% Ayush 11
4
10%
4%

Among the different age group, the age between 31 to 45 prefers

sunsilk as the most used shampoo that accounted for 41% i.e. 46
respondents out of the 300.

84
 AGE 46 TO 60

Others
11 Sunsilk
12% 32
36%
Pantene
9
10%

Head &
Shoulder
5
5%
Rejoice
Ayush
5 20
22%
5%

Clinic
9
10%

Among the different age group, the age between 46 to 60 prefers sunsilk
as the most used shampoo that accounted for 36% i.e. 32 respondents
out of the 300.

85
 AGE ABOVE 60

Rejoice
1
Sunsilk
0 17%
0%

Clinic
1
Others
2 17%
32%

Ayush
1
17%

Head &
Pantene
1 Shoulder
0
17% 0%

Among the different age group, the age above 60, people prefers other
brands than these as the most used shampoo that accounted for 32% i.e.
2 respondents out of the 300.

86
 BRAND'S PREFERED (Bathing Soap)

90 82
80
70
60
NUMBERS

50 50
50
40
40
30
17 17 20
20 12
10 7 4 1
0
x

s
ze

am
a
e
a

uy

ril
s
Lu

er
us
on
ov
irm

ar

Li
ee

bo

th
am
Pe

Ay
D

ex
N

Br

fe

O
R

Li
BRANDS

(Ref. Annex – 19)

Amongst the different brands preferred in case of Bathing Soaps

Lux brand was the first amongst the all that resulted into 82 respondents
out of the 300 people.

87
 (Ref. Annex – 21)

AGE 18 TO 30

Ayush Lifebuoy
1 5
Hamam
7 1% 5%
7% Liril
8
8%

Others
Rexona 13
2
12%
2%
Nirma
4
4%
Dove
22 Lux
21% 24
22%

Breeze
Pears 1
18
1%
17%

Among the different age group, the age between 18 to 30 prefers Lux as
the most used Bathing Soap that accounted for 22% i.e. 35 respondents
out of the 300.

88
 AGE 31 TO 46
Liril
Lifebuoy 7
5 Others
Ayush
0 7% 13
5%
0% 12%

Hamam Nirma
4 6
4% 6%

Rexona
0
0%
Lux
Dove
37
12
34%
11%

Pears
Breeze
18 4
17%
4%
Among the different age group, the age between 31 to 46 prefers Lux as
the most used Bathing Soap that accounted for 34% i.e. 37 respondents
out of the 300.

89
 AGE 46 TO 60

Liril
5
Lifebuoy
2 Others
Ayush
0 7% 10
3% 14%
0%

Hamam
5 Nirma
7
7%
9%

Rexona
1
1% Lux
Dove 21
7 28%
9% Breeze
2
Pears 3%
14
19%

Among the different age group, the age between 46 to 60 prefers

Lux as the most used Bathing Soap that accounted for 28% i.e. 21
respondents out of the 300.

90
 AGE ABOVE 60

Pears
1
Liril
0 Dove
17% 3
Others
0 0% 49%
0%
Nirma
0
0%
Lifebuoy
0
0%
Rexona
1
Ayush
0 Lux
0 17%
Breeze Hamam
1
0% 0% 0
0% 17%

Among the different age group, the age above 60 prefers Dove as
the most used Bathing Soap that accounted for 49% i.e. 3 respondents
out of the 300.

91
 EDUCATION
Graduate
175
Schooling 59%
49, 16%

Post
Professio Graduate
nal, 43
33, 11% 14%

(Ref. Annex – 23)

Among the survey done on the bases of FMCG products most of the
responses that came were from the Graduates that covered about 59% that is
175 respondents out of the total 300

92
 Exsistence of product like fairness
soap and shampoo to control hair fall

200 177
180
160
140
NUMBER

120 105
100
80
60
40 18
20
0
YES NO CAN'T SAY
CATEGORY

(Ref. Annex – 24)

Based on the question asked as to whether there is an existence of

product like fairness soap and shampoo to control hair fall, most people
preferred to answer as “NO” compared to answer “YES”.

93
 (Ref. Annex – 25)

SCHOOLING

NO
YES 29
18 59%
37%

CAN'T
SAY
2
4%
On questioning as to whether there is existence of fairness soap and
shampoo that control the hair fall, most of the people who fell in the group of
schooling disagreed, that is 29 respondents out of 300 which is 59%.

GRADUATES

NO
106
60%
YES
61
35%

CAN'T
SAY
8
5%

On questioning as to whether there is existence of fairness soap and

shampoo that control the hair fall, most of the people who fell in the group of
graduates disagreed, that is 106 respondents out of 300 which is 60%.

94
 POST GRADUATES

NO
22
51%
YES
16
37%

CAN'T
SAY
5
12%

On questioning as to whether there is existence of fairness soap and

shampoo that control the hair fall, most of the people who fell in the group of
post graduates disagreed, that is 22 respondents out of 300 which is 51%.

PROFESSIONAL

NO
20
61%

YES
10
30%

CAN'T
SAY
3
9%
On questioning as to whether there is existence of fairness soap and
shampoo that control the hair fall, most of the people who fell in the group of
professional disagreed, that is 29 respondents out of 300 which is 59%.

95
 FREQUENT CHANGE OF DETERGENT
BRAND USED

CAN'T SAY 13

NO
223
CATEGORY

YES 64

0
50 100 150 200 250
NUMBERS
(Ref. Annex – 26)

Most of the people who were surveyed are not changing their Detergent
brand frequently as they feel that the brands that they are using give them the
satisfaction that they want. This was accounted for 223 respondents out of
300.

FREQUENT CHANGE OF SHAMPOO

BRAND USED

9
CAN'T SAY
CATEGORY

NO
225

YES 36

0
50 100 150 200 250
NUMBERS
(Ref. Annex – 27)

Most of the people who were surveyed are not changing their shampoo
brand frequently as they feel that the brands that they are using give them the
satisfaction that they want. This was accounted for 225 respondents out of
300.

96
 FREQUENT CHANGE OF BATHING SOAP
BRAND USED

CATEGORY
9
CAN'T SAY

NO
206

YES 77

0
50 100 150 200 250
NUMBERS
(Ref. Annex – 28)

Most of the people who were surveyed are not changing their Bathing
Soap brand frequently as they feel that the brands that they are using give
them the satisfaction that they want. This was accounted for 206 respondents
out of 300.

ADVERTISEMENT CAN AFFECT SALES

CATEGORY

CAN'T SAY 18

NO
118

YES 164

0
50 100 150 200
NUMBERS
(Ref. Annex – 29)

Based on the question asked as to whether advertisement can affect

sales, most people preferred to answer as “YES” in comparison to not agreeing
as they personally believe that there are other factors also which can affect
sales.

97
 PURCHASE PLACE

235

250

200

150 65
NUMBER
100

50

0
GROCERY SHOP MALL
PLACE

(Ref. Annex – 30)

From the above survey we have found that most of the people go to
Grocery shops to purchase product of detergent, bathing soap and shampoo
for their daily usage. It was found that out of 300 respondents 235 are going
to grocery shops compared to different malls which was only selected by 65
respondents.

98
 CHAPTER – 4

CONCLUSIONS

AND

RECOMMENDATIONS

99
 CONCLUSION

 From the survey done on 300 people on the companies

HLL, P&G and Nirma, we have concluded that most of the respondents
falls in the age group of 31 to 45. Most of the respondents fall in
income group of 100001 to 200000. If we talk about the education
then more respondent falls in Graduation.

 It was seen that the brand name that came to the mind of
respondents first in detergent was ‘Nirma’ i.e. 93 out of 300, for
shampoo it was ‘Sunsilk’ i.e. 115 out of 300 and for bathing soap it
was ‘Lux’, i.e. 110 out of 300.

 From the survey done, when respondents were asked that

which detergent they used, about 26% people answered “Surf”, in case
of bathing soap 27% told about “Lux” and in case of Shampoo 37%
told about Sunsilk.

 On the basis of survey we had found that near about 76%

of the respondent out of the 300 are not changing their brand of
detergents, bathing soap and shampoos frequently.

 When respondent were asked to give rank to the

parameters for detergents, shampoos and bathing soap, quality was
given the first rank by near about 75% out of 300 respondents.

 When respondents were asked question related to MNC

that whether they personally believes that MNC products are of better
quality about 184 out of 300 agreed with the statement. About 203 out
of the 300 priced. About 164 out of 300 believe that advertisement
can definitely affect sales of products.

 People who were surveyed about 177 out of 300 disagreed

with the statement that there exists any product which can give
fairness and shampoo that can control hair fall.

 If we compare the purchasing place of the products of

HLL, P&G and Nirma we found that ratio for Grocery shops and malls is

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235:65. That means about 78% respondents goes to Grocery shops for
their purchase of these products

RECOMMENDATIONS

 P&G

 P&G need to make their product affordable in Indian

market so as to get quantity of sale benefit

 P&G should enter into lower and product which has high
potential with reference to Indian market

 They need to promote their product Ariel which is loosing

market share in its segment

 They need to promote their companies name along with the

brand name.

 HLL

 They need to enter into lower segments of

detergent.

 They need to take care regarding the competition

with in its own brands.

 They need to bring more awareness of the

companies name along with the brand name.

 NIRMA

 They need to enter into a premium

market segment.

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 They should work upon research and
development to improve the quality of their product.

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CHAPTER – 5

BIBLIOGRAPHY

AND

REFERENCES

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 BIBLIOGRAPHY AND REFERENCES

 BOOKS
1. Philip Kotler; “Marketing Management”; Prentice-Hall India (PHI);
11th Edition; Pg. No. (418-432).

2. Philip Kotler, Gary Armstrong; “Principle of Marketing”; Prentice-Hall

India (PHI); 10th Edition; Pg. No. (141-164).

3. G. C. Beri; “Modern Marketing Research”; 3rd Edition; Pg. No. (4-

346).

 MAGAZINES

1. Business Today

2. Outlook

3. Insight

4. Advance Edge

 NEWSPAPERS

1. The Times of India

2. The Economics Times

3. Business Times

 WEBSITES

1. WWW.HLL.COM

2. WWW.PG-INDIA.COM

3. WWW.NIRMA.ORG

4. WWW.GOOGLE.COM

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CHAPTER – 6

ANNEXURES

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