Introduction

Today, in India, around 500,000 children under five years of age die each year due to water borne diseases like diarrhea; 75 percent of Indias rural population does not have access to safe drinking water and over 80 percent of diseases and 33 percent of deaths are caused primarily due to unsafe drinking water. Beyond the rural population, it is estimated that around 80% of urban dwellers do not purify tap water. Many of them are from the lower income strata and cannot afford UV or reverse osmosis water purification systems. They are the potential buyers of economical but effective chemical purifiers. Eureka Forbes, Hindustan Unilever and Tata are trying to aggressively tap this market of affordable and effective chemical purifiers. Chemical based purifiers, Aqua sure and Pureit, together account for 20% of water purifiers sold. Both are becoming increasingly popular because they are effective and affordable. The two brands are reported to be growing at 100 percent per annum. Also, they do not run on electricity and are ideal for locations where power supply is unpredictable. Neither do they demand continuous water supply. Power and water are still scarce even in urban India. Recently Tata Chemicals has unveiled two new variants of its low cost water purifier, Swach aimed at providing safe drinking water to every Indian household. Swach Smart and Swach Smart Magic are priced at INR749 and INR499. They claim that using the power of Nanotechnology combined with natural ingredients. It delivers safe drinking water at a benchmark price of Re.1 per day for a family of five. Tata Swach is a household water purifier and requires no electricity or running water to operate.

The Indian Water Purifier Market

It is estimated that roughly two thirds of the existing water purification market belongs to UV water purifiers and one third is shared between reverse osmosis purification systems and chemical purifiers. In the UV purifier segment, Eureka Forbes Aquaguard is the clear market leader with approximately 68% market share. Other brands include Philips Intelligent Water Purifier and Kents UV purifier. The UV purifier market is estimated to be growing at a lower rate than the chemical based segment. Reverse osmosis purifiers, which are rather expensive and not the preferred option in many areas, have a smaller share of the market when compared with UV purifiers and chemical based systems. In the reverse osmosis segment, Eureka Forbes is again the major player with 60% share. A major portion of the remaining 40% belongs to Kent reverse osmosis Systems. In chemical based water purifiers Hindustan UniLever is the market leader with more than 60% market share. Its product (Pureit) is available across 21 Indian states and has reached more than 1million homes in India giving them access to microbiologically safe drinking water. Eureka Forbes has a market share of approximately 20% and TATA Swach is a fringe player at this point.

Introduction to HUL

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company, touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. The companys Turnover is Rs. 20,239 crores (for the 15 month period January 1, 2010 to March 31, 2011). HUL is a subsidiary of Unilever, one of the worlds leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of 40.5 billion in 2008. Unilever has about 52% shareholding in HUL Hindustan Unilever was recently rated amongst the top four companies globally in the list of Global Top Companies for Leaders by a study sponsored by Hewitt Associates, in partnership with Fortune magazine and the RBL Group. The company was ranked number one in the Asia-Pacific region and in India. The mission that inspires HUL's more than 15,000 employees, including over 1,400 managers, is to add vitality to life". The company meets every day needs for nutrition, hygiene, and personal care, with brands that help people feel good, look good and get more out of life. It is a mission HUL shares with its parent company, Unilever, which holds about 52 % of the equity.

Brands for life (Product Line)

Hindustan Unilever Limited has been the pioneer in the field of Food brand, Home care brands, personal care brands, water purification systems, Nutrition, Health, Hygiene & beauty products. The following are the basic products of Hindustan Unilever Ltd., which has always promised to provide safe and healthy living.

Food Brands. Home Care Brands. Personal Care Brands. Water Purification System. 3

Food brands
HUL is one of Indias leading food companies. Our passion for understanding what people want and need from their food - and what they love about it - makes our brands a popular choice. Brooke Bond 3 Roses Playful banter, a little mischief, serious conversation theres no time for young couples like the time spent sharing a cup of 3 Roses.

Annapurna Partnering with the mom in nurturing her dreams, Annapurna Atta is aimed at helping her provide wholesome tasty nutrition to her family.

Taj - Mahal Brooke Bond Taj Mahal is an exclusive selection of teas for the discerning consumer.

Bru Bru is the coffee brand of HUL.Its Indias largest coffee brand that offers a range of products in Instant coffee, Conventional coffee and premixes....Its rich aroma and unique blend makes every moment come alive.

Kwality Walls A good honest scoop of daily pleasure. Kwality Walls, the brand with a big heart, offers a range of delightful frozen desserts that bring smiles to the faces of millions of Indians kids, teens and adults.

Home care brands

HUL has a diverse portfolio of brands offering home care solutions for millions of consumers across India. Active Wheel Active Wheel de "Mehnat se Aazadi" Freedom from painful & tiring laundry

Domex The sheer power of Domex bleach gives you the confidence you need, eradicating all known germs.

Rin Rin provides best in class whiteness which is demonstrable.

Surf Excel Giving your kids the freedom to get dirty and experience life, safe in the knowledge that Surf Excel will remove those stains.

Vim Created in 1885, the Vim brand is still innovating and using the magic of natural ingredients to create unbeatable results over a hundred years later.

Personal care brands

Our personal care brands, including Axe, Dove, Lux, Pond's, Rexona and Sunsilk, are recognized and love by consumers across India. They help consumers to look good and feel good and in turn get more out of life. Axe 5

Axe with Best Quality Fragrance. AXE is a cool, iconic, youth brand available in more than 60 countries. In India, Axe, which has been launched in 1999, is the largest selling Male Deodorant. Clinic Plus Clinic Plus is Indias largest selling shampoo and has won the trust the millions of families across India. Clinic Plus understands that healthy hair is an important asset which helps your family progress in life and empowers you. Closeup Freshness that brings you Closer. Closeup is synonymous with Freshness that gives you the confidence to be close to someone. Dove Dove stands for real beauty. All around the world, Dove is making real women feel more beautiful! Since 1993, Indian women have relied on Dove for beautiful skin. Dove is known to be a keeper of promises and has given real products to women world over. Fair & Lovely More than 30 years ago, a unique brand was born. Wrapped within a humble lavender tube, it went on to become the Worlds No.1 Fairness cream. Lakme Lakme is an ally to the Indian Woman and inspires her to express her unique beauty and sensuality. Thus, enabling her to realize the potency of her beauty. Lakme is the Indian womans Beauty Sutra inspiring expression of her unique beauty and sensuality Lifebuoy Lifebuoy is available in multiple variants in soaps and specialist formats such as liquid handwash, catering to the entire family. Lifebuoy, an undisputed market leader for 112 years, has a compelling 6

vision to make 5 billion people across the world, feel safe and secure by meeting their personal care hygiene & health needs Lux Lux believes in passion for beauty. It continues to be a favorite with generations of users for a sensuous experience of luxury. Pears Pears the purest and most gentle way to skincare! Pears launched in India in 1902, exuberates a long heritage of purity. It is so pure that you can actually see through it! Pepsodent Pepsodent India is committed to improve the overall Oral health of Indians.

Ponds Get the expert to look after your skin Ponds, has been listening to womens needs and desires for 150 years and this has enabled us to deliver new products customised to their needs. Ponds accompanies them on their journey to enhance the beauty of their skin.

Water Purifier-Pure it

Pureit is the worlds most advanced in-home water purifier. Pureit, a breakthrough offering of Hindustan Unilever (HUL), provides complete protection from all water-borne diseases, unmatched convenience and affordability. Pureits unique Germ kill Battery technology kills all harmful viruses and bacteria and removes parasites and pesticide impurities, giving you water that is "as safe as boiled water". It assures your family 100% protection from all water-borne diseases like jaundice, diarrhea, typhoid and cholera. Whats more, it doesnt need gas, electricity or continuous tap water supply. Pureit not only renders water micro-biologically safe, but also makes the water clear, odorless and good-tasting. Pureit does not leave any residual chlorine in the output water. The output water from Pureit meets stringent criteria for microbiologically safe drinking water, from one of the toughest regulatory agencies in the USA, EPA (Environmental Protection Agency). 7

The performance of Pureit has also been tested by leading scientific and medical institutions in India and abroad. This patented technological breakthrough has been developed by HUL. This state-of the-art engineering developed by a team of over 100 Indian and international experts from HUL and Unilever Research Centers has made Pureit possible at the consumer price of just Rs. 2000. Pureit runs with a unique Germ kill Battery Kit that typically lasts for 1500 liters* of water. The Germ kill Battery Kit is priced at Rs.365. This means consumers will get 4 litres of water that is as safe as boiled water for just one rupee, which works out to an extremely affordable 24 paise per litre. Pureit in-home purification system uses a 4 stage purification process to deliver as safe as boiled water without the use of electricity and pressurized tap water.

Pureit purifies the input drinking water in four stages, namely; 1. Micro-fiber Mesh - Removes visible dirt 2. Compact Carbon Trap - Removes remaining dirt, harmful parasites & pesticide impurities 3. Germ kill Processor TM uses 'programmed chlorine release chlorine technology' and its stored germ kill process targets and kills harmful virus and bacteria 4. Polisher TM removes residual chlorine and all disinfectant by-products, giving clear odorless and great tasting water

Battery Life Indicator - Ensures total safety because when the germ kill power is exhausted, the indicator turns red, warning you to replace the battery

Product analysis (Pureit)

Pureit - a water purifier designed and developed to provide as safe as Boiled water

Performance
Pureit removes visible dirt, kills all viruses and bacteria, removes parasites and pesticide impurities giving you water that is as safes as boiled water 9

Additional Features:
Great sensorial Clear, odour -free water : removes organics, pesticides, suspended matter (turbidity) Anytime , anywhere performance : works Without electricity Without piped water

Convenience No hassles of boiling, No maintenance costs like plumbing Cost Rs. 1/- for every 4 Liters of water

The Technology:
Chlorination of water is a known fact & is used as a worldwide phenomenon by municipal corporations for supply of potable water. It kills all bacteria and viruses in water. However chlorine added to water by these corporation is not done scientifically especially in third world countries. Hence the amount of chlorination may be more or less depending on the quantity of water; thus again making this water unsafe for human consumption. Frame

Non woven

(polyester cloth filter)

MICRO FIBRE MESH

Material Non woven polyester Removes suspended particulate > 10 micron Reduces filtration load on CCT Average flow rate of 5 lit/min

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COMPACT CARBON TRAP

Material intermediate activated carbon Binder is used for holding the carbon granules Removes particulate impurities < 10 micron Removes organic load improves taste of water Removes pesticides Removes cysts

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GERM KILL PROCESSOR

Attached with batching chamber. Stored germ-kill power target and kill harmful viruses and bacteria Unique Auto Switch off Technology > After the battery life indicator turns fully red, the purifier will begin to overflow from the battery life indicator on the front side. > Some water may still pass through the purifier. However, please note that the purifier has stopped purifying water & the water may no longer be safe for drinking. > The purifier has been designed to overflow to indicate that the battery has not been replaced even after it has turned fully red.

POLISHER

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Made by activated granular carbon and coated by silver. This design has reduced pressure drop, eliminating the level of fines coming in the water and reduced wastage of plastics in battery Removes chlorine and disinfection by-products. Radial flow design low pressure drop. Finally removes all odour , makes water visually clear & gives great tasting water.

Performance testing Leading scientific institutions

Central Food Technology Research Institute. National Institute of Cholera and Enteric Diseases Indian Public Health Association Institution of Public Health Engineers

Leading Medical Institutions

King Institute of Preventive Medicine

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Sundaram Medical Foundation Apollo Hospitals SRL Ranbaxy Clinical Reference Laboratories

Leading International Institutions

London School of Hygiene and Medicine UK Scottish Parasite Diagnostic Laboratory, Glasgow, UK

SEGMENTATION,TARGETING AND POSITIONING OF PUREIT

The domestic water purifier appliances market is estimated to be Rs 450 crore. This category was not growing very fast because of the high cost of the product. The entry level water purifier was costing anywhere between Rs 5000- Rs10,000.The company uses the following differentiation points against the main competitor Aquaguard by claiming that the product works without gas/electricity thus the cost per litre of pure water is very less. More over the brand is priced as the lowest priced purifier compared to Aquaguard or Kent.

Product Segmentation

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Hindustan Unilever sells different water-purifiers on the basis of classifying their utility and price affordability. The water purifiers are classified as follows: (1)Pureit Compact Rs 1000 /(2)Pureit Classic Rs 2000 /(3)Pureit Autofill Rs 3200 /(4)Pureit Marvella Rs 6900 /They are looking at segmenting the VFM (value for money) storage water purifier market with new products and technologies to provide the benefits of pure drinking water by riding up and down the price value chain. It has decided to straddle the water purification pyramid completely in terms of pricing and products in the home water drinking segment. Having entered the premium segment with Pureit Marvella, there are chances of it bringing out more upgraded products with increasing price points to cater to all sets of consumers.

Targeting
The brand is mainly targeting households and student communities staying away from home.

Positioning
Pureit is being positioned on the basis of its performance. The brand claims that the water from the purifier is ' as safe as the boiled water '. By claiming that it purifies water as safe as boiling water, Pureit is trying to achieve Points of Parity with Aquaguard and Kent which also claims the same feature. Along with this POP, the brand tries to differentiate on the following points: a. no electricity/gas b. Low Cost per liter c. Price of the product is also low The brand uses the tagline As Safe as Boiled water .

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4 PS of Marketing Strategies

The major marketing management decision can be classified on one of following four categories Product Price Place Promotion

These variables are known as the marketing mix or 4 Ps of marketing. They are the variables that marketing managers can control in order to best satisfy customers in the target market. Product:

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The product is the physical product or service offered to the costumer. In the case of physical product, it also refers to any services or conveniences that are part of the offering. Product decision includes aspects such as functions, appearance, packaging, service, warranty, etc.

Price:
Pricing decision should take into account profit margins and the probable pricing response of competitors. Pricing includes not only the list price, but also discounts, financing, and other options such as leasing.

Place:
Place decisions are those associated with channels of distribution that serve as the means for getting the product to the target customers. The distribution system performs transactional, logistical, and facilitating functions.

Promotion: Promotion decisions are those related to communicating and selling to potential consumers.
Since these costs can be large in proportion to the product price, a break-even analysis should be performed when making promotion decision. It is useful to know the value of a customer in order to determine whether addition customers are worth the cost of acquiring them.

PRODUCT/SERVICE STRATEGY OF WATER PURIFIER

4 varieties available in the market

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Easy availability nation wide Best quality of used plastic [ABS ( Acrylonitrile Butadiene Styrene ) food grade] Best quality based technological parts used. Designed and developed to provide As safe as Boiled Water Very attractive design in various colors. Pure it removes visible dirt, kills all harmful viruses and bacteria. Removes parasites and pesticide impurities Great sensorial- Clear, odor-free water: removes organics, pesticides, suspended matter (turbidity) Anytime, anywhere (portable) performance : works-without electricity, without piped water Very easy to use Convenience No hassles of boiling, No maintenance costs like Plumbing Cost- Rs.1 /- for every 4 Liters of water Top most brand name ( Hindustan Unilever Ltd ) Quick service ( within 24 hours ) 6 months warranty period

PRICE STRATEGY OF WATER PURIFIER

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Product price range between Rs.1000 6900 Very Low cost of maintenance. Low cost for products. Best price compared to competitors. Attractive discount on replacement of device for customer No credit terms Attractive allowance for dealers

PROMOTION / MARKETING COMMUNICATION STRATEGY OF WATER PURIFIER

Activated subscription immediately Quick installation of products Good repair services Free Services during life time Commercial TV advertisements Advertisement in newspapers Brochure Sales force (8000+ across country) 1 crore safety challenge. Marketing surveys through: Kiosk Demonstration Cold call Reference by old customer

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PLACE / DISTRIBUTION STRATEGY OF WATER PURIFIER

Launched in Chennai : Ending of 2003 Identify the places having high impurities in water. Identify the places which are more prone to diseases. National wide launch in 2007 1st quarter. Now present in all states Where possibility for direct sales is more (urban areas mostly) Easy availability of product (Good Transport facility )

Comparison with nearest competitors

KEY SAFETY FEATURES Removes viruses, bacteria parasites harmful

PUREIT MARVELLA

TATA SWACH

EUREKA FORBES AQUASURE

KENT CRYSTAL

and

End-of-life indicator Automatic lock Safety

FULLY AUTOMATIC FEATURES Availability Storage Insta-serve jug of

PUREIT MARVELLA

TATA SWACH

EUREKA FORBES AQUASURE

KENT CRYSTAL

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Automatic filling No electricity Auto On/Off

SWOT Analysis

Conclusion
Hindustan Unilever ltd. is a leading FMCG company in India and from last three consecutive years has shown accelerated growth in FMCG portfolio. Customers in India are also spending more in FMCG as their standard of living is growing. HUL has placed itself successfully in the position of market leader in FMCG products. Though there was some downfall in sales and profit of the company in the beginning of this decade but after that HUL has shown considerable rise in both sales and profit. We found many Water purifiers available in the market, which can be compared with Pureit. As a conclusion we found that Pureit is doing well and its performance is best in non-electric water purifiers. After this study it was found that the main competitor of PureIt is Aqua guard (Eureka forbs

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Ltd). According to our findings, we found that Pureit is the market leader in the chemical water purifier market.

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