Index

Particulars
Introduction Industry Profile Company Profile Product Profile Organization Profile Research Methodology 1) Introduction to the Topic 2) Statement of Problem 3) Objective of the Study 4) Research Design Formulation of Hypothesis Data Sources Data Collection Method Sample Design 5) Scope of the Study 6) Limitation of the Study Theoretical Background of the Study Analysis and Interpretation of Data Finding, Suggestion Questionnaire Bibliography

Page

02-04
05-10 11-15 16-25 26-26

27-38

39-44 45-52 53-54 55-58 59-59

INDUSTRY PROFILE
1.1 FAST MOVING CONSUMER GOODS:Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are those that get replaced within a year. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, tooth 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, soft drinks, tissue paper, and chocolate bars. A subset of FMCGs is Fast Moving Consumer Electronics which include innovative electronic products such as mobile phones, MP3 players, digital cameras, GPS Systems and Laptops. These are replaced more frequently than other electronic products. White goods in FMCG refer to household electronic items such as Refrigerators, TVs, Music Systems, etc. In 2005, the Rs. 48,000-crore FMCG segment was one of the fast growing industries in India. According to the AC Nielsen India study, the industry grew 5.3% in value

1.2. FMCG SECTORE:

Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged goods. Items in this category include all consumables (other than groceries/pulses) people buy at regular intervals. The most common in the list are toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, and household accessories and extends to certain electronic goods. These items are meant for daily of frequent consumption and have a high return. A major portion of the monthly budget of each household is reserved for FMCG products. The volume of money circulated in the economy against FMCG products is very high, as the number of products the consumer use is very high. Competition in the FMCG sector is very high resulting in high pressure on margins.
2

A. INDIAN FMCG SECTORE:The Indian FMCG sector is the fourth largest in the economy and has a market size of US$13.1 billion. Well-established distribution networks, as well as intense competition between the organized and unorganized segments are the characteristics of this sector. FMCG in India has a strong and competitive MNC presence across the entire value chain. It has been predicted that the FMCG market will reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The middle class and the rural segments of the Indian population are the most promising market for FMCG, and give brand makers the opportunity to convert them to branded products. Most of the product categories like jams, toothpaste, skin care, shampoos, etc, in India, have low per capita consumption as well as low penetration level, but the potential for growth is huge. The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid urbanization, increased literacy levels, and rising per capita income. The big firms are growing bigger and small-time companies are catching up as well. According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by MNCs, and the balance by Indian companies. Fifteen companies own these 62 brands, and 27 of these are owned by Hindustan Lever. Pepsi is at number three followed by Thumps Up. Britannia takes the fifth place, followed by Colgate (6), Nirma (7), Coca-Cola (8) and Parle (9). These are figures the soft drink and cigarette companies have always shied away from revealing. Personal care, cigarettes, and soft drinks are the three biggest categories in FMCG. Between them, they account for 35 of the top 100 brands.

B. THE TOP 10 COMPANIES IN FMCG SECTOR:Sr. NO. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Companies Hindustan Unilever Ltd. ITC (Indian Tobacco Company) Nestl India GCMMF (AMUL) Dabur India Asian Paints (India) Cadbury India Britannia Industries Procter & Gamble Hygiene and Health Care Marico Industries The personal care category has the largest number of brands, i.e., 21, inclusive of Lux, Lifebuoy, Fair and Lovely, Vicks, and Ponds. There are 11 HLL brands in the 21, aggregating Rs. 3,799 crore or 54% of the personal care category. Cigarettes account for 17% of the top 100 FMCG sales, and just below the personal care category. ITC alone accounts for 60% volume market share and 70% by value of all filter cigarettes in India. The foods category in FMCG is gaining popularity with a swing of launches by HLL, ITC, Godrej, and others. This category has 18 major brands, aggregating Rs. 4,637 crore. Nestle and Amul slug it out in the powders segment. The food category has also seen innovations like softies in ice creams, chapattis by HLL, ready to eat rice by HLL and pizzas by both GCMMF and Godrej Pillsbury. This category seems to have faster development than the stagnating personal care category. Amul, India's largest foods company has a good presence in the food category with its ice-creams, curd, milk, butter, cheese, and so on. Britannia also ranks in the top 100 FMCG brands, dominates the biscuits category and has launched a series of products at various prices. In the household care category (like mosquito repellents), Godrej and Reckitt are two players. Goodknight from Godrej is worth above Rs 217 crore, followed by Reckitt's Mortein at Rs 149 crore. In the shampoo category, HLL's Clinic and Sunsilk make it to the top 100, although P&G's Head and
4

Shoulders and Pantene are also trying hard to be positioned on top. Clinic is nearly double the size of Sunsilk. Dabur is among the top five FMCG companies in India and is a herbal specialist. With a turnover of Rs. 19 billion (approx. US$ 420 million) in 2005-2006, Dabur has brands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola and Real. Asian Paints is enjoying a formidable presence in the Indian sub-continent, Southeast Asia, Far East, Middle East, South Pacific, Caribbean, Africa and Europe. Asian Paints is India's largest paint company, with a turnover of Rs.22.6 billion (around USD 513 million). Forbes Global magazine, USA, ranked Asian Paints among the 200 Best Small Companies in the World Cadbury India is the market leader in the chocolate confectionery market with a 70% market share and is ranked number two in the total food drinks market. Its popular brands include Cadbury's Dairy Milk, 5 Star, Eclairs, and Gems. The Rs.15.6 billion (USD 380 Million) Marico is a leading Indian group in consumer products and services in the Global Beauty and Wellness space.

1.3 SCOPE OF THE SECTOR:The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the economy. A well-established distribution network, intense competition between the organized and unorganized segments characterizes the sector. FMCG Sector is expected to grow by over 60% by 2010. That will translate into an annual growth of 10% over a 5-year period. It has been estimated that FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs 92,100 crores in 2010. Hair care, household care, male grooming, female hygiene, and the chocolates and confectionery categories are estimated to be the fastest growing segments,

1.4 RECENT DEVELOPEMENTS FMCG SECTORE:FMCG sector is no doubt registering an up trend in growth. According to CNBC, FMCG sector growth story will continue because of the positive budget. Nevertheless, there are some barriers to the growth of the sector. Indirect taxes constitute no less than 35% of the total cost of consumer products - the highest in Asia. Last year, Finance Minister proposed to introduce an integrated Goods and Service Tax by April 2010.This is an exceptionally good move because the growth of consumption, production, and employment is directly proportionate to reduction in indirect taxes.

COMPANY PROFILE
2.1 HISTORY
6

Unilever's corporate mission to add vitality to life shows how clearly the business understands 21st century-consumers and their lives. But the spirit of this mission forms a thread that runs throughout our history. In the 1890s, William Hesketh Lever, founder of Lever Bros, wrote down his ideas for Sunlight Soap his revolutionary new product that helped popularise cleanliness and hygiene in Victorian England. It was 'to make cleanliness commonplace; to lessen work for women; to foster health and contribute to personal attractiveness, that life may be more enjoyable and rewarding for the people who use our products. This was long before the phrase 'Corporate Mission' had been invented, but these ideas have stayed at the heart of our business. Even if their language - and the notion of only women doing housework has become outdated. In a history that now crosses three centuries, Unilever's success has been influenced by the major events of the day economic boom, depression, world wars, changing consumer lifestyles and advances in technology. And throughout we've created products that help people get more out of life cutting the time spent on household chores, improving nutrition, enabling people to enjoy food and take care of their homes, their clothes and themselves. In the late 19th century the businesses that would later become Unilever were among the most philanthropic of their time. They set up projects to improve the lot of their workers and created products with a positive social impact, making hygiene and personal care commonplace and improving nutrition through adding vitamins to foods that were already daily staples. Today, Unilever still believes that success means acting with 'the highest standards of corporate behavior towards our employees, consumers and the societies and world in which we live'. Over the years we've launched or participated in an ever-growing range of initiatives to source sustainable supplies of raw materials, protect environments, support local communities and much more. Through this timeline you'll see how our brand portfolio has evolved. At the beginning of the 21st century, our Path to Growth strategy focused us on global high-potential brands and our Vitality mission is taking us into a new phase of development. More than ever, our brands are helping people 'feel good, look good and get more out of life' a sentiment close to Lord Leverhulme's heart over a hundred years ago.

2.2 PAST
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
7

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. Ponds (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. Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the most visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills Company (TOMCO) merged with HLL, effective from April 1, 1993. In 1995, HLL and yet another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Lever Limited, to market Lakme's market-leading cosmetics and other appropriate products of both the companies. Subsequently in 1998, Lakme Limited sold its brands to HLL and divested its 50% stake in the joint venture to the company.HLL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994, Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary Pads. HLL has also set up a subsidiary in Nepal, Nepal Lever Limited (NLL), and its factory represents the largest manufacturing investment in the Himalayan kingdom. The NLL factory manufactures HLL's products like Soaps, Detergents and Personal Products both for the domestic market and exports to India. The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on the Foods and Beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with significant interests in Instant Coffee. In 1993, it acquired the Kissed business from the UB Group and the Dollops Ice-cream business from Cadbury
8

India. As a measure of backward integration, Tea Estates and Doom Dooma, two plantation companies of Unilever, were merged with Brooke Bond. Then in July 1993, Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL), enabling greater focus and ensuring synergy in the traditional Beverages business. 1994 witnessed BBLIL launching the Wall's range of Frozen Desserts. By the end of the year, the company entered into a strategic alliance with the Kwality Icecream Group families and in 1995 the Milkfood 100% Icecream marketing and distribution rights too were acquired. Finally, BBLIL merged with HLL, with effect from January 1, 1996. The internal restructuring culminated in the merger of Pond's (India) Limited (PIL) with HLL in 1998. The two companies had significant overlaps in Personal Products, Specialty Chemicals and Exports businesses, besides a common distribution system since 1993 for Personal Products. The two also had a common management pool and a technology base. The amalgamation was done to ensure for the Group, benefits from scale economies both in domestic and export markets and enable it to fund investments required for aggressively building new categories. In January 2000, in a historic step, the government decided to award 74 per cent equity in Modern Foods to HLL, thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. HLL's entry into Bread is a strategic extension of the company's wheat business. In 2002, HLL acquired the government's remaining stake in Modern Foods. In 2003, HLL acquired the Cooked Shrimp and Pasteurized Crabmeat business of the Amalgam Group of Companies, a leader in value added Marine Products exports.

2.3 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 tonnes and sales of Rs.10, 000 cores.
9

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 16,000 employees, including over 1,200 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 over 40 factories across India. The operations involve over 2,000 suppliers and associates. HLL's distribution network, comprising about 4,000 redistribution stockiest, covering 6.3 million retail outlets reaching 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 Centres in India have over 200 highly qualified scientists and technologists, many with post-doctoral experience acquired in the US and Europe. In 2001, the company 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 Programme, and creating access to relevant information through the iShakti community portal. The program now covers 15 states in India and has over 31,000 women entrepreneurs in its fold, reaching out to 100,000 villages and directly reaching to 150 million rural consumers. By the end of 2010, Shakti aims to have 100,000 Shakti entrepreneurs covering 500,000 villages, touching the lives of over 600 million people.HLL has a market share of about 29% in tea during 2004.

A. ENVIRONMENTAL POLICY:Hindustan Unilever Limited (HUL) 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 behavior 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
10

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.

B. CODE OF BUSINESS PRACTICES:Unilever has earned a reputation for conducting its business with integrity and with respect for the interests of those our activities can affect. This reputation is an asset, just as real as our people and brands. Our first priority is to be a successful business and that means investing for growth and balancing short-term and long-term interests. It also means caring about our consumers, employees and shareholders, our business partners and the world in which we live. To succeed requires the highest standards of behavior from all of us. The general principles contained in this Code set out those standards. More detailed guidance tailored to the needs of different countries and companies will build on these principles as appropriate, but will not include any standards less rigorous than those contained in this Code We want this Code to be more than a collection of high-sounding statements. It must have practical value in our day-to-day business and each one of us must follow these principles in the spirit as well as the letter.

C. HUL EXPORT:
Today, HUL is one of Indias largest exporters of branded Fast Moving Consumer Goods. It has been recognized by the Government of India as a Golden Super Star Trading House. Over time HUL has developed into a viable & competitive sourcing base for Unilever world wide in Home and Personal Care & Foods & Beverages category of products. HUL is also a global marketing arm for select licensed Unilever brands and also works on building categories with core country advantage
11

such as branded basmati rice. HUL Exports offers high level of service with flexibility and responsiveness thorough out the supply chain. It has a dedicated organization structure to support this endeavor and this has helped in growth of these businesses in particular. HULs key focus in the exports business is on two broad categories. It is a sourcing base for Unilever brands in Home & Personal Care (HPC) and Food and Beverages (F&B) for supplies to other Unilever companies. It also focuses on becoming a preferred supplier to both non-Unilever and Unilever clients in three categories in which India, as a country, has competitive advantage Branded Rice, Marine Products and Castor and its Derivatives. HUL enjoys international recognition within Unilever and outside for its quality, reliability and speed of customer service.HUL's Exports geography comprises, at present, countries in Europe, Asia, Middle East, Africa, Australia, North America etc

D. QUALITY POLICY:Hindustan Unilever 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

2.4 Company vision and mission:Vision:

Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition; hygiene and personal care with brands that help people feel good, look good and get more out of life. Our deep roots in local cultures and markets around the world give us our strong relationship with consumers
12

and are the foundation for our future growth. We will bring our wealth of knowledge and international expertise to the service of local consumers a truly multi-local multinational. Our 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, we believe, the highest standards of corporate behavior towards everyone we work with, the communities we touch, and the environment on which we have an impact. This is our road to sustainable, profitable growth, creating long-term value for our shareholders, our people.

Mission:
Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life.

ORGANIZATION STRUCTURE Mr. Harish Manwani

Chairman

13

A distinguished alumnus in statistics & economics and MBA from Mumbai University, Mr. Manwani joined HUL in 1976. Following several Sales and Marketing assignments, he became Divisional Vice President - Marketing. Mr. Manwani joined the Board of HUL in 1995, responsible for the Personal Products business. In addition, he held regional responsibility as the Category Leader for Personal Products for the then Central Asia and Middle East (CAME) Business Group.

Mr.Dauglas Baillie
CEO and Managing Director

Douglas Baillie (50) Born and educated in Zimbabwe, Mr. Baillie graduated from the University of Natal with majors in business finance, marketing and business administration and joined Unilever SA in 1978.

D.Sundaram
Finance & IT Director Mr. D. Sundaram is post-graduate from Madras University and a Fellow of the Institute of Cost and Works Accountants of India (FICWA). He joined Hindustan Unilever in 1975.
14

Mr.N.Paranjpe
Executive Director Mr. Nitin Paranjpe after obtaining a degree in BE (Mech) and MBA in Marketing (JBIMS) from Mumbai joined the Company as a Management Trainee in 1987. In his early years in the Company, Mr. Paranjpe worked as Area Sales Manager Detergents and then Product Manager Detergents. Effective March 2006 Mr. Paranjpe is the Executive Director for the Home & Personal Care business.

Mr.Sanjiv Kakkar
Director Mr. Sanjiv Kakkar is BA (Economics) and PGDM from IIM Ahmedabad with 23 years work experience. Mr. Kakkar was appointed as Executive Director - Foods and joined the Management Committee on 1st January 2007. Sanjiv was appointed as the Executive Director - Sales and Customer Development in May 2007

A.Narayan
Director Mr. A. Narayan is the Managing Director and CEO of ICI India Limited. He is also the Chairman of ICI India Research & Technology Centre. Mr. Narayan joined the Board as Independent Non-Executive Director in 2001.

V.Narayanan
Director Mr. V. Narayanan is a post-graduate from Madras University. He was Chairman and Managing Director of the erstwhile Pond's (India) Ltd. He is now Chairman of the Academy of Management Excellence. He joined the Board as Independent NonExecutive Director in 1987.

15

D.S.Parekh
Director Mr. D. S. Parekh holds a FCA degree from England & Wales. Mr. Parekh has held senior positions in Grindlays and Chase Manhattan. He is the Executive Chairman of Housing Development Finance Corporation. Mr. Parekh joined the Board as Independent Non-Executive Director in 1997.

C.K.Prahalad
Director Professor C. K. Prahalad is the Harvey C. Fruehauf Professor of Business Administration at the University of Michigan at Ann Arbor, the US. His contribution to business strategy is globally recognized. He joined the Board as Independent Non-Executive Director in 2000.

S.Ramadorai

2.3 YEAR MILESTONES ACHIEVED BY THE COMPANY

1888 - Sunlight soap introduced in India. 1895 - Lifebuoy soap launched; Lever Brothers appoints agents in Mumbai, Chennai, Kolkata, and Karachi. 1902 - Pears soap introduced in India.
16

1903 - Brooke Bond Red Label tea launched. 1905 - Lux flakes introduced. 1913 - Vim scouring powder introduced. 1914 - Vinolia soap launched in India. 1922 - Rinso soap powder introduced. 1924 - Gibbs dental preparations launched. . 1926 - Hartogs registers Dalda Trademark. 1930 - Unilever is formed on January 1 through merger of Lever Brothers and Margarine Unie. 1931 - Hindustan Vanaspati Manufacturing Company registered on November 27; Sewri factory site bought. 1933 Application made for setting up soap factory next to the Vanaspati factory at Sewri; Lever Brothers India Limited incorporated on October 17. 1934 Soap manufacture begins at Sewri factory in October; North West Soap Company's Garden Reach Factory, Kolkata rented and expanded to produce Lever brands. 1937 - Mr. Prakash Tandon, one of the first Indian covenanted managers, joinsHVM. 1939 Garden Reach Factory purchased outright; concentration on building up Dalda Vanaspati as a brand. 1942 Unilever takes firm decision to "train Indians to take over junior and senior management positions instead of Europeans". 1944 Reorganization of the three companies with common management but separate marketing operations. 1947 Pond's Cold Cream launched.
17

1951 - Mr. Prakash Tandon becomes first Indian Director. Shamnagar, Tiruchy, and Ghaziabad Vanaspati factories bought. 1956 - Three companies merge to form Hindustan Lever Limited, with 10% Indian equity participation. 1957 1958 1959 1962 1963 1965 1967 1968 Unilever Special Committee approves research activity by Hindustan Lever. Research Unit starts functioning at Mumbai Factory. Surf launched. Formal Exports Department starts. Head Office building at Backbay Reclamation, Mumbai, opened. Signal toothpaste launched; Indian shareholding increases to 14%. Hindustan Lever Research Centre opens in Mumbai. Mr. V. G. Rajadhyaksha takes over as Chairman from Mr. Prakash Tandon; Fine

Chemicals Unit commissioned at Andheri; informal price control on soap begins. 1969 1971 Rin bar launched; Fine Chemicals Unit starts production; Bru coffee launched Mr. V. G. Rajadhyaksha presents plan for diversification into chemicals to Unilever Special Committee - plan approved; Clinic shampoo launched. 1973 1974 Mr. T. Thomas takes over as Chairman from Mr. V. G. Rajadhyaksha. Pilot plant for industrial chemicals at Taloja; informal price control on soaps withdrawn; Liril marketed. 1976 - Construction work of Haldia chemicals complex begins; Taloja chemicals unit begins functioning. 1977 Jammu synthetic Detergents plant inaugurated; Indian shareholding increases to 18.57%.
18

1978 1980 -

Indian shareholding increases to 34%; Fair & Lovely skin cream launched. . Dr. A. S. Ganguly takes over as Chairman from Mr. T. Thomas; Unilever

shareholding in the company comes down to 51%. 1982 - Government allows 51% Unilever shareholding. 1984 - Foods, Animal Feeds businesses transferred to Lipton. . 1988 1990 1991 1992 Launch of Lipton Taza tea. Mr. S. M. Datta takes over as Chairman from Dr. A. S. Ganguly. Surf Ultra detergent launched. HLL recognized by Government of India as Star Trading House in Exports.

1993 - HLL's largest competitor, Tata Oil Mills Company (TOMCO), merges with the company with effect from April 1, 1993, the biggest such in Indian industry till that time. Merger ultimately accomplished in December 1994; Launch of Vim bar; Kissan acquired from the Group. 1995 - HLL and Indian cosmetics major, Lakme Ltd., form 50:50 joint ventures -Lakme Lever Ltd.; HLL enters branded staples business with salt; HLL recognized as Super Star Trading House. 1996 - Mr. K. B. Dadiseth takes over as Chairman from Mr. S. M. Datta; Merger of Group company, Brooke Bond Lipton India Limited, with HLL, with effect from January 1; H LL introduces branded atta; Surf Excel launched. 1997 - Unilever sets up International Research Laboratory in Bangalore; new Regional Innovation Centers also come up. 1998 - Group company, Pond's India Ltd., merges with HLL with effect from January 1, 1998. HLL acquires Lakme brand, factories and Lakme Ltd.'s 50% equity in Lakme Lever Ltd. UB

19

2000 - Mr. M. S. Banga takes over as Chairman from Mr. K. B. Dadiseth, who joins the Unilever Board; HLL acquires 74% stake in Modern Food Industries Ltd.,the first public sector company to be disinvested by the Government of India. 2002 - HLL enters Ayurvedic health & beauty centre category with the Ayush range and Ayush Therapy Centers. 2003 - Launch of Hindustan Lever Network; acquisition of the Amalgam Group 2005 - Launch of "Pureit" water purifiers

PRODUCT PROFILE
1. Brook-Bond
In a nation of tea drinkers, the one brand that signifies tea in India is Brooke Bond ever since
20

the launch of Brooke Bond Red Label in 1903. It is India's single largest tea brand. It has touched millions of consumers with a range of tea offerings appealing to the diversity of their tastes. It has the strongest foothold amongst any of the tea brands in India and touches the homes of over 500 million consumers. To de-commodities the tea category, Brooke Bond is focusing its efforts on building four powerful sub-brands, namely, Brooke Bond Taj Mahal, Brooke Bond Red Label, Brooke Bond Taza & Brooke Bond 3 Roses. The range offers a full variety of propositions as well as price points to appeal to various sections.

2. Lifebuoy
Lifebuoys vision is, Making a billion Indians feel safe and secure by meeting all their health and hygiene needs. True to its vision, the world's largest selling soap, offers a compelling health benefit to the entire family. Launched in 1895, Lifebuoy, for over 100 years, has been synonymous with health and value.

3. Ayush
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 experience. and proven functionality and international standards of quality and safety, for a uniquely pleasurable and holistic Ayurvedic

4. Breeze

21

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.

5. Bru
Bru, launched in 1969, created history in the first year of launch by growing to a record market share of 21%. Ever since, it has grown from strength to strength.

6. Fair & Lovely

A woman's passion for beauty is universal and catering to this strong need is Fair & Lovely. Based on a revolutionary breakthrough in skin lightening technology, Fair & Lovely was launched in 1978.

7. Clinic Plus
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.

8. Close up
22

Close-up is the original youth brand of India.The first brand targeting youth in the oral care market, with an edgy and youthful image which stays relevant till date. Ever since its launch in 1975, Close-up has broken every rule in the book on how toothpastes should behave!

9. Dove
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.

10. Hamam
Launched in 1934, Hamam has always been a reliable option for consumers over years.The brand has withstood the test of time and has given the consumers the confidence and assurance of being a soap that is safe on skin.

11. Kissan
Acquired by Hindustan Lever Limited in 1994, the Kissan category consists of 'deliciously wholesome products for kids to grow up

12. Knorr
23

Knorr is Unilevers largest brand worldwide and stands for chieftainship and recipe expertise. The core of the brand consists of innovation and partnering with the consumer in the creation of great dishes. The brand is present across soups, bouillons, cubitos, meal kits and pastas around the world.

13. Kwality Walls

Kwality Wall's, launched in 1995, is the company's master brand for ice cream. Kwality Wall's has combined state-of-the art technical know-how of Unilever - the global leader in ice cream - with a deep insight of the Indian market, to deliver a range of superior quality products..

14. Lakme
Half a century ago, as India took her steps into freedom, Lakme, India's first beauty brand was born. At a time when the beauty industry in India was at a nascent stage, Lakme tapped into what would grow to be amongst the leading, high consumer interest segments in the Indian Industry.

15. Pepsodent
Pepsodent, launched in 1993, was the first toothpaste with a unique anti-bacterial agent to address the consumer need of checking germs even hours after brushing.

16. Ponds
24

Pond's has been synonymous with skin care in India since 1947. The impressive track record of Pond's began when Theron T Pond, a pharmacist from Utica New York, introduced 'Pond's Golden Treasure' in 1846, a witch-hazel based wonder product

17. Rexona Deodorant

Rexona was the first Deodorant to be launched in India in 1995. It is the only deodorant in the Indian market that promises 24 hour protection from Body Odour. Rexona has ingredients that combine body odour protection and cosmetic values which are proven to work in challenging situations.

18. Rexona
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. The brand has been constantly improved to keep up with expectation of the consumers.

19. Rin
Launched in 1969, Rin with the power of its thunderous lightning flash has become a household name synonymous with dazzling white clothes, for millions across the length. and breadth of the country.

20. Surf excel

25

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.

21. Sunsilk
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.

22. Vaseline
Vaseline is a trusted brand worldwide associated with daily skin care and healthy skin for the entire family. Vaseline has been keeping skin healthy since 1870.

23. 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.

24. Annapurna
26

Annapurna brand, first introduced in 1997, has been the provider of wholesome nutrition to millions of Indians. The brand currently operates in two of the largest, almost universally consumed, country Salt& Atta (wheat flour). foods categories of the

25. Lipton
Lipton, the world's largest selling tea brand, is an iconic brand for the youth through both its hot and cold formats. Lipton Yellow Label is Unilever's global tea brand and sells in many countries across the world, with tea bags, packet tea and Lipton Ice Tea. Lipton Ice Tea, the international ice tea drink, is available in India in Lemon and Peach flavours.

26. Liril
For 28 years, freshness has been clearly identified with one name LirilLiril 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.

28. Pureit
27

Hindustan Unilever Limited has launched Pureit, the most advanced in-home water purifier in the world. It is the only purifier that gives you water that is as safe as boiled water' without boiling, and without needing electricity or continuous tap water supply. This is why it is the most advanced inhume water purifier in the world. Pureit gives water that is free from harmful viruses, bacteria and parasites because it has a Pureit Germ kill Battery that is a combination of unique technological breakthroughs. Therefore, it provides 100% protection from all water related diseases like jaundice, diarrhoea, typhoid and cholera. Pureit also removes cancer causing pesticides that may be present in drinking water.

History of Lifebuoy Soap

28

lifebuoy hai jahaan tandurust hai wahaan

1. History

In 1885 William Hesketh Lever and his brother James began a small factory in Warington, England, where they used palm and vegetable oils instead of tallow to produce soap. The first soap they produced was called Sunlight Soap, which was used primarily for household cleaning.
o

As the Lever Brothers' business grew, they expanded their company and built a larger factory as well as an employee village for workers on the Wirral Peninsula (eventually called Port Sunlight) across from Liverpool. While in Port Sunlight, the company began to experiment with creating different types of soap and Lifebuoy was born. The brand went global in 1911 and began distributing to countries such as the United States, Germany, Switzerland and Canada.

2. Function
Lifebuoy soap was the first to use carbolic acid or phenol as an ingredient in their cleaning products. This gave the soap its signature red coloring and a distinct medicinal odor. Carbolic was previously only used by people in medical professions, mostly surgeons, for disinfecting purposes. The addition of this ingredient to consumer products was considered a breakthrough in the early 1900s. Lever Brothers and the Lifebuoy brand provided an affordable product that promoted personal health and hygiene.
o

The original Lifebuoy soap, like Sunlight Soap, was primarily used for household chores such as washing clothing or cleaning the floors. However, the brand took personal hygiene to the next level by introducing the toilet bar in 1933. This special bar soap was used primarily for hand and body washing.

3. Evolution and changes

29

Lifebuoy went through several changes and incarnations throughout the brand's history. A white version of the soap was introduced in 1962 and contained a light perfume scent. Pink and aqua versions were released soon after. Each package of Lifebuoy soap contained the phrase "Knocks out B.O." and the brand is credited with coining the long-standing abbreviation for body odor.
o

The original Lifebuoy soap was manufactured in the UK until 1987 when the production and distribution was halted. The brand was shortly taken over by Unilever and is still in production today---albeit with several key differences. Due to regulations put forth by the European Union, the soap can no longer contain carbolic because it is potentially toxic and linked to skin irritation and respiratory tract problems with prolonged exposure. The substance is also considered a possible carcinogen. Lifebuoy soap is still the leading brand of soap in several countries worldwide, specifically in India and parts of Southern Asia. Unilever produces a wide range of products under the Lifebuoy umbrella such as body wash, liquid soaps and acne-fighting solutions.

4. Hygiene Education and Disaster Relief

From its inception, the Lifebuoy brand committed to educating the public about the dangers of germs and microbes. In the early days, door-to-door campaigns were organized in order to demonstrate the proper technique for hand-washing.
o

Lifebuoy also has a history of helping people maintain hygiene in times of natural disaster. During the 1940 Blitz of London, the brand set up mobile, free washing facilities for public use. Each unit was equipped with showers, towels and soap. In 2004 after a Tsunami hit Asia, Lifebuoy bars were sent in relief packages to India, Sri Lanka and Indonesia to help prevent the spread of disease. The brand also provided aid after earthquakes hit Pakistan and Northern India in 2005. Lifebuoy donated over 200,000 bars of soap to the International Committee of the Red Cross to support the recovery effort.

5. Lifebouy in Pop Culture

This specific brand of soap received some special screen time in the 1984 comedy "A Christmas Story." The main character Ralphie was forced to hold a cake of red Lifebuoy soap in his mouth after saying the "F" word.
o

30

31

RESEARCH METHODOLOGY
5.1 Introduction:
For any project report to be effective and fruitful is essential to have a proper research design .A research design is the arrangement of condition for collection and analysis of data is a way in which combine relevance to research purpose with economy is procedure. The research design of the researcher undertaken constitutes following factors. A) Purpose of study. B) Selection of study. C) Where will be study carried out

Purpose of study
The purpose of study undertaken is mentioned here under, A B Apart from academic necessity the study provides a full exposure to the researcher of the The Company also stands to benefit through the study. The company may use the data corporate world. provided by the researcher and hence where the company needs to improve in comparison with the competitors. C Company may devise new strategies for future to deal with the competitors efficiently

32

5.3 OBJECTIVES OF STUDY Primary objectives:

1)

To study marketing strategy and sales promotion in LIFE BUOY

Secondary objectives:
1) 2) 3)

To give suggestions and recommendation on the basis of findings To find sales of LIFE-BUOY. To conduct SWOT analysis for life buoy To study product life cycle of LIFE BUOY. To study & use of LIFE BUOY.

4) To study the effectiveness of marketing and sales promotion.

5) 6)

33

5.4 RESERCH DESIGN Introduction

Research in common parlance refers to search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact research is an art of scientific investigation. Research is the process of systematic and in-depth study or search for any particular topic, subject or area of investigation, backed by the collection, compilation, presentation, and interpretation of relevant details or data. Some people consider research as a movement, a movement from the known to the unknown. It is actually a voyage of discovery. We all poses the vital inquisitive makes us probe and attain full and fuller understanding of the unknownThis inquisitiveness is the mother of all knowledge and the method , which man employs for obtaining the knowledge of whatever the unknown , can be termed as research. Research is an academic activity and as such the term should be used in a technical sense. According to Clifford woody research comprise define and redefinez problems, formulating hypothesis or suggested solutions; Collecting, organizing and evaluating data; making deduction and reaching conclusion; and at last carefully testing the conclusion to determine whether they fit the formulation hypothesis. D. Slesinger and M. Stephension in the Encyclopedia of social science define research as the manipulation of thing, concept or symbols for the purpose of generalizing toextend, correct or verify knowledge, whether that knowledge aids in construction of theory or in the practice of an art. Research is thus an original contribution to theexisting stock of knowledge making for its advancement. It is the pursuit of truth with the help of study, observation, comparison and experiment. In short, the search for knowledge through objective and systematic method of finding solution to a problem is research. The systematic approach concerning generalization and the formulation of the theory is also research. As such the term research refer to the systematic method consisting of enunciating the problem, formulation a hypothesis, collecting the fact or data, analyzing the fact and reaching certain conclusion either in the form of solution (s) toward the concerned problem or in certain generalization for sometheoretical formulation.

34

A) TYPE OF RESEARCH DESIGN Descriptive Research

Researcher has adopted descriptive research design because, a descriptive research is undertaken when researcher wants to know the characteristics of certain group such as age, sex education level, income, occupation etc.

B) DATA SOURCE Secondary Data

The secondary source of data was company journals, product guides, company brochures and various websites available on Internet like www.hll.com. C) DATA COLLECTION METHOD Collection of data is first step in statics the goal of collection. The data collection process follows the formulation of research design including the sample plan data, which can be secondary or primary, can be collected using variety of tools.

Collection of Secondary data:

Researcher has collected secondary data by searching different books, company journals and different websites available on internet.

Overview of the research process: 1. Planning of study: This comprises of defining the problem and research objectives. 2. Developing the research plan: This comprises of deciding on data sources, research approaches, and research instruments, sampling plans and contacts methods. 3. Gathering of the information. 4. Interpretation of the information and presenting the findings.

35

5.6 LIMITATION OF STUDY

1. Some retailers refused to cooperate with researcher. 2. Exact sells figure were not available. 3. As the methodology of data collection was main purpose of the questionnaire and information and some time because of the blabs. The findings may not be fully correct. 4. The no. of retailers interact were limited so the actual potential might differ for the reported findings in the project. . 6. interview of

sample, which was selected by researcher, some people (sample) may not have revealed the true

36

THEORETICAL BACKGROUND

Introduction:Now a day there a lot of competition in each and every field. In such kind of competition advertisement is a very important tool in marketing of goods / service. Advertising communicates the information about product or company effectively and efficiently. Advertising is the backup for marketing by existing / prospective buyers & consumers about the product. The advertisement is a service as a link between the manufacturer and consumer. Organization handles advertising in different ways. In the small organization it is handled by someone in the sale or marketing department where as in a large company. There are five major decisions in developing an advertising program. 1) Mission: - What is the advertising objective. 2) Money: - How much can be spent. 3) Message: - What Message can be sent. 4) Media: - What media should be used. 5) Measurement: - How should the results be evaluated.

MEANING AND DEFINITION:37

Meaning:In short Advertising can be defined as any paid form of non-personal communication of information about product or ideas by an identified sponsor through the Mass Media in an effort top arcade or influence behavior of the people in such as to induce them to buy. In short it means populating product or service. Definition:Advertising is a form of communication for which payment has been made to the medium which has carried the communication when no payment is involved then the communication is known as Publicity.

OBJECTIVE OF ADVERTISEMENT:The Objective of advertisement is Effective Communication win consumers. Hence the purpose. Of advertising is to increase Awareness in the consumers. The following are some of the specific objective of Advertising. - To build primary demand. - To introduce a price deal. - To inform about products availability. - To Build the Brand. - To help the salesman by creating a awareness of the product. - To create reputation.

38

MESSAGE DEVLOPMENT:The following important steps of message creativity & development in advertisement. Message Generation:Advertising people have proposed different theories for creating a effective message. Message evaluation and selection:A good ad normal focus on one core selling preposition. That message be rated on desirability, exclusiveness and believability. Message execution:The message impact depends not only on what is said, but often more important on how it is said. Some ads aim for rational positioning and other for emotional positioning.

MEDIA OF ADVERTISMENT:The following important media in the advertisement News Paper:Good local market coverage. Television:Combines sight, sound and motion, appearing to the senses. Radio:Mass use, high geographic and demographic selectivity, low cost. Magazine:Long Life, Good Pass relationship. Outdoor:-High repeat exposure, low cost, low competition.

39

SALES PROMOTION:Sales Promotion is key ingredient in marketing campaigns. We define it as follows. Definition:Sales Promotion consists of a diverse collection of incentive tools mostly short term, designed to stimulate quicker and / or greater purchase or particulars product / services by consumer or the trade. When the advertising offers a person to buy, sales promotion offers incentive to buy. Sales Promotion includes tools for consumer promoting. e.g. Samples, Coupons, Cash refund offers, prices off, premiums, prizes percentage rewards, free trials, warranties, tie in promotion, point of purchase displays and demonstration.

Objective of Sales Promotion:Sales Promotion objective are consistent with marketing objectives. 1) Informing:Informing is to educate. The consumer about product. They have must knowledge about the product offered by the session. 2) Persuading:Sales Promotion persuade consumer to buy products. They develop or rein form a favorable set of attitudes towards their buying behavior. 3) Reminders:Reminding leads the firms to rein form. The previously satisfactory behaviors of the consumer

40

Importance of Advertisement and Sales Promotion :Advertising assists in the realization of marketing objective of a company within a Specified period of time it is form of communication. Which informs pursuits and rewinds customer of the qualities of the product? Potential customers are approached though suitable advertising media. Advertising and Sales Promotion both are important for introduction o new product both create demand for product. Also they gives Information about the uses of product sales promotion provides discount, Coupon, Dealers promotion etc.

41

FOUR PS OF MARKETING

Product: You can't have a boring, affordable, average product if you hoping it be a hit online, especially if I can find far better and cheaper product somewhere else. Price: Virtually everything that internet touches is becoming free, so it's not just about being most competitive but to also find ways to include "gift economy" in your pricing model. Place: Internet cuts traditional distribution/middleman like no other. In terms of place only place that matters is your "place on Google" higher you are placed better your chances of reaching your customers. Promotion: Unlike TV, radio and billboards internet was not made to create more ads to bombard you with. Promoting your product online is more of "show me what I want when I want".

42

43

44

45

46

ANALYSIS AND INTERPRETATION OF CUSTOMER DATA

Source: Primary data

Interpretation:
From the above graph it is clear that, out of the total respondent maximum number of respondents are having there income group is between 3000-6000 rupees per month and minimum number of respondent having income group is more than 18000 rupees per month.

Family size:
Table no.3

Sr no. 1. 2. 3.

Family size Less than 3 member 3 to 5 More than 5 member

Family size of the respondent

No. of respondent 13 103 34

23%

9%

68%

Less than 3 member

3 to 5

More than 5 member

Source: Primary data

Interpretation:
47

From the above graph it is clear that, 68% of customers have 3-5 members in there family and 9% customers have less than 3 members in there family. Hence, more number of nuclear families available in Nasik city.

Q1) Do you consume tea or coffee?

Table no.4

Sr no. 1. 2. 3. 4.

Consumption Tea Coffee Either tea or coffee Both Consumption

No. of respondent 135 5 4 6

3% 3%

4%

90%

Tea

Coffee

Either tea or coffee

Both

Source: Primary data

48

Interpretation:
From the above graph it is clear that, out of the total respondent 90% customers consume tea and remaining 10% customers consume either tea or coffee, only coffee & both respectively. Hence, there is huge market potential for tea.

Q2) which brand of tea powder do you purchase regularly?

Table no.5

Sr no. 1. 2. 3. 4. 5. 6.

Brand Sapat Parivar Brooke Bond Tata Society Others

No. of respondent 46 48 25 9 1 21

Tea brand use by customer

7% 1% 19% 36%

37%

Sapat

Parivar

Brooke Bond

Tata

Society

Source: Primary data

Interpretation:
49

From the above chart is clear that, out of the total respondent 73% customers purchase Sapat tea brand regularly and 19% customers purchase Brooke Bond tea. Hence there is huge demand for Sapat tea as compare to Brooke Bond tea in Nasik city.

Q3) what is the frequency of purchasing tea powder?

Table no.6

Sr no. 1. 2. 3. 4. 5.

Frequency of buying Once in a week Twice in a week Once in 15 days Once in a month As & when require Frequency of purchasing tea powder

No. of respondent 7 8 40 79 16

11%

5%

5% 27%

Once in a week Twice in a week Once in 15 days Once in a month

52%

As & when require

Source: Primary data

Interpretation:

50

From the above chart it is clear that, out of the total respondent 52% & 27% of customers are purchasing teas powders once in a month and once in a 15 days and remaining very less percentage of customers purchasing tea powder as & when require. Hence, maximum number of customers purchases tea powder once in a month.

Q5) How much quantity of tea powder do you consume in a month?

Table no.7

Sr.no. 1. 2. 3. 4. 5.

Quantity consume (In grams) 0-250 250-500 500-750 750-1000 1000 & above Tea powder consume in a month

No. of respondent 30 76 29 11 4

7%

3% 20% 0-250 250-500 500-750 750-1000 1000 & above 51%

19%

Source: Primary data

Interpretation:
From the above chart it is clear that, out of the total respondent 51% of customers consume 250-500 grams tea powder per month and remaining 20%, 19% customers consume 0-250 & 500-750
51

gram tea powder per month and very little number of customers consume more than 750 gram tea powder. Hence, maximum number of families requires 250-500 gm tea powder per month.

ANALYSIS & INTERPRETATION RETAILERS DATA

Q1) Availability of tea powder in Grocery shopsTable no.1

Sr.no 1. 2. 3. 4. 5.

Brand Brooke-Bond Sapat Parivar Society Other

Available in number of grocery shops. 178 197 195 110 112

Percentage 89.00% 98.50% 97.50% 55.00% 56.00%

Availability of tea powder in no. of grocery shops

250 Number of grocery shops 200 150 110 100 50 0 Brooke-Bond Sapat Parivar Tea Brands Society Other 197 178 195

112

Source: Primary data

Interpretation:
From above graph it is clear that about 89%, 98.5%, 97.5%, 55%& 56% retailers keep the stock of Brooke-Bond, Sapat, Parivar, Society & others tea for selling respectively. Therefore most of the retailer interested in keeping the Sapat , Parivar tea for selling followed by Brooke Bond , Society and others tea.

52

Q.2) Quantity of tea purchase per month (In kg)

Table no.2

Sr no. 1. 2. 3. 4. 5.

Brand Brooke-Bond Sapat Parivar Society Other

Quantity purchase per month (in kg) 2348 6437 3724 572 1536

Quantity of tea powder purchase per month (In kg)

7000 6000 5000 Qty. purchase (In kg) 4000 3000 2000 1000 0 2348 BrookeBond 6437 f 3724 572 Sapat Parivar Tea Brands Quantity purchase per month (In kg) Society 1536 Other

Source: Primary Data

Interpretation:
From above graph it is clear that retailers purchase maximum quantity of Sapat tea per month and minimum quantity of Parivar and Brooke Bond tea and very less quantity of society and other tea powder per month for selling. Hence, there is huge demand for Sapat and Parivar tea as compare to Brooke-Bond and other tea.

53

Q.3) Quantity of tea sale per month

Table no. 3

Sr no. 1. 2. 3. 4. 5.

Brand Brooke-Bond Sapat Parivar Society Other

Quantity sale per month (in kg) 2256 6002 4370 565 1465

Percentage 15% 41% 30% 4% 10%

54

Quantity of tea powder sale per month (In kg)

7000 6000 5000 4000 3000 2000 1000 0 2256 565 BrookeBond Sapat Parivar Tea Brands Quantity sells per month (in kg) Society 6002 4370 1465 Other

Sale (in kg)

Market share of each tea brand

4%

10%

15%

30% 41%

Brooke-Bond Sapat Source: Primary Data

Parivar Society

Other

Interpretation:
From above graph it is clear that, maximum quantity of Sapat and Parivar tea and minimum quantity of Brooke Bond tea and other tea are being sold per month, therefore we can say that Sapat tea is having more demand in Nasik city as compare to Brooke Bond tea.
55

Hence from the above table we can say that market share of the Sapat is 41%, Parivar 30%, Brooke Bond 15%, society 4%, and other tea it is 10%.

Q.4) Turnover of outlet per year

Table no. 4

Respondent 125
Table no. 5

Non respondent 75

56

Sr.no 1. 2. 3. 4. 5. 6.

Turnover 0-10 10-20 20-30 30-40 40-50 50 to above

No. of respondents 59 36 16 03 05 06

Percentage 29.50% 18% 8% 1.5% 2.5% 3%

Turnover of outlet per year (In lakh)

50 to above Turnover Per year 40-50 30-40 20-30 10--20 0-10 0 10 20

6 5 3 16 36
No. of respondents

59
30 40 50 60 70

Source: Primary Data

Interpretation:
From the above graph it is clear that out of the total respondent 29.5%, 18%, 8%, 1.5%, 2.5%, & 3% retailers having there yearly turnover is lies between 0-10, 10-20, 20-30, 30-40, 40-50, & above 50 lakh respectively. Hence maximum number of retailers having there yearly turnover is between 0-10 lakh per year.

Q.5) Number of customer visited day Table no. 6

Sr.no 1. 2. 3. 4. 5. 6. 7.

Customer 0-50 50-100 100-150 150-200 200-250 250-300 300 to above

57

No. of respondents 25 64 34 25 15 10 27

Percentage 12.5% 32% 17% 12.5% 7.5% 5% 13.5%

Number of customer visited per day

70 60 50 40 30 20 10 0 Number of respondent

64 25 0-50 50-100 34 25 150-200 15 200-250 27 10 250-300 300 to above

100-150

Number of customer No. of respondents

Source: Primary Data

Interpretation:
From the above graph it is clear that out of the total respondent 12.5% retailer said that number of customer per day are in between 0-50, like that 32%, 17%, 12.5%, 7.5%, 5%, & 13.5% retailers said that number of customers per day are in between 50-100, 100-150, 150-200, 200-250, 250-300, and above 300 respectively.

Q.6) No. of customer purchase tea powder per day Table no. 7

Sr.no 1. 2. 3. 4. 5. 6.

Customer 0-10 10-20 20-30 30-40 40-50 50 to above

No. of respondents 37 66 30 24 08 35

Percentage 18.5% 33% 15% 12% 4% 17.5%

58

Number of customers for tea powder per day

Number of respondent 70 60 50 40 30 20 10 0 0-10 10--20 20-30 30-40 Number of customer No. of respondents Percentage 37 18.50% 66 15% 30 17.50% 12% 24 4% 8 40-50 50 to above 35 33%

Source: Primary Data

Interpretation:
From the above graph it is clear that, out of the total respondent 18.5% retailer said that number of customer for purchasing tea per day are in between 0-10, like that 33%, 15%, 12%, 4%, & 17.5%, retailers said that it is 10-20, 20-30, 30-40, 40-50, & above 50 customers respectively. Therefore maximum number of customers for purchasing tea powder per day is 10-20.

Q.7) Home delivery to number of customerTable no. 8

Home delivery 74

Not home delivery 126

Home delivery

Home delivery 37% Not home delivery 63%

59

Home delivery

Not home delivery

Table no.9 Sr.No 1. 2. 3. 4. 5. Customer 0-25 25-50 50-75 75-100 100 & above No. of respondents 19 19 13 02 21 Percentage 25.7% 25.7% 17.6% 2.8% 28.4%

Home delivery to no. of customers

25 No. of respondents 20 15 10 5 0 0-25 25-50 50-75 No. of customers 75-100 100 & above 2 19 19 13 21

Source: Primary Data

Interpretation:
From the above chart it is clear that, out of the total respondent 37% retailers provide home delivery to there customer and graph shows that maximum number of retailers provide home delivery to 0-50 number of customers per month. Therefore maximum number of retailers are not providing home delivery to there customers.

60

Testing Hypothesis: Formulation of hypothesis 1. Family size and tea consumption:

Null hypothesis: Family size is independent of tea consumption. Alternative hypothesis: Family size is dependent of tea consumption. Observed Frequency table: Quantity consume( In gm) 0-250 250-500 500-750 750-1000 1000 & above Total < 3 members 7 4 2 0 0 13 3-5 19 52 20 10 2 103 Family size >5 members 4 20 7 1 2 34 Total 30 76 29 11 4 150

To test the hypothesis researcher has selected chi-square test.

X= (O-E) O-Observed frequency, E-Expected frequency

Row total x column total Grand total

Expected frequency =

61

Expected frequency table: Quantity consume 0-250 250-500 500-750 750-1000 1000 & above < 3 members 2.6 6.58 2.51 0.95 0.34 Family size 3-5 20.6 52.18 19.91 7.55 2.74 >5 members 6.8 17.22 6.57 2.49 0.90

X = (O-E) / E

X = 15.80

It is now necessary to compare this value with the critical value of X. In a table 5 x 3, the degree of freedom is (5-1) (3-1) = 8.In this case degree of freedom is 8.The critical value of X with 8 degree of freedom of 5% level of significance is 15.507.

Therefore calculated X is greater than the critical value of X, the null hypothesis that family size is independent of tea consumption is rejected. Thus we can say that family size is dependent of tea consumption.

2. Family income and use of tea brand:

62

Null hypothesis: There is no significant relationship between use of tea brand and family income. Alternative hypothesis: There is significant relationship between use of tea brand and family income. Observed Frequency table: Family income per month Less than 3000 3000-6000 6000-9000 9000-12000 12000-15000 15000-18000 More than 18000 Total Sapat 13 7 5 9 7 4 1 46 Parivar Brooke2 14 10 7 6 7 2 48 Bond 2 5 1 8 2 3 4 25 Tea brand use Tata 3 3 2 1 0 0 0 09 Society 0 0 1 0 0 0 0 01 Others 2 5 3 0 7 4 0 21 Total 22 34 22 25 22 18 07 150

To test the hypothesis researcher has selected chi-square test.

X= (O-E) O-Observed frequency, E-Expected frequency

Row total x column total Grand total

Expected frequency =

Expected frequency table: Family income per

63

Tea brand use

month Less than 3000 3000-6000 6000-9000 9000-12000 12000-15000 15000-18000 More than 18000

Sapat 6.74 10.42 6.74 7.66 6.74 5.52 2.14

Parivar 7.04 10.8 7.04 8.00 7.04 5.76 2.24

BrookeBond 3.66 5.66 3.66 4.16 3.66 3.00 1.16

Tata 1.32 2.04 1.32 1.50 1.32 1.08 0.42

Society 0.14 0.22 0.14 0.16 0.14 0.12 0.04

Others 3.08 4.76 3.08 3.50 3.08 2.52 0.98

X = (O-E) / E

X = 46.30

It is now necessary to compare this value with the critical value of X. In a table 7 x 6, the degree of freedom is (7-1) (6-1) = 30.In this case degree of freedom is 30.The critical value of X with 30 degree of freedom of 5% level of significance is 47.967.

Therefore calculated X is less than the critical value of X, the null hypothesis that there is no significant relationship between use of tea brand and family income is accepted.

FINDINGS, SUGGESTIONS AND CONCLUSION

8.1 FINDINGS
64

While doing the research Researcher went through 200 Retailers, 150 customers. Researcher prepared a Questionnaire and interviewed the respondents. Finally, Researcher came to the following findings. Average quantity consumption of tea powder/month/family (In grams) (Class) Quantity consume per month(In grams) 0-250 250-500 500-750 750-1000 1000-1500 Mid value (x) 125 375 625 875 1250 Frequency (f) No. of respondent 30 76 29 11 04 f=150 (fx) 3750 28500 18125 9075 5000 fx=64450

Mean=

fx f

= 64.45 150 = 0.42 kg/family/month Family Size Less than 3 member 3-5 More than 5 Frequency 13 103 34

From above table it is clear that the frequency of class 3-5 is higher so that it is modal class and the mode is 8/2 = 4. Therefore, average family size is 4. According to the census report 2001 population of Nasik city is 11 lakh. Number of households = 11 lakh / 4 = 2, 75,000. Therefore, from above data researcher has calculated market potential for tea in Nasik city as follows: Market potential = (Average quantity consumption per family) x (No. of households) = (0.42) x (2, 75,000)
65

= 1, 18,158.34 kg = 118.15 Tons Therefore, Total market potential for tea powder in Nasik city is 118.15 tons. Researcher has found the market share of Brooke Bond tea in Nasik city, it is 15%. Therefore, market potential for Brooke Bond tea is 85% of 118.15 tons which is 100.42 tons. From consumers data: 1. 68% and 23% of customers having 3-5 and more than 5 members in there family so there is large potential to fulfill there tea demand. 2. 90% customers consume tea and remaining 10% customers consume either tea or coffee, only coffee & both respectively, so there is huge potential for Brooke Bond tea to capture market. 3. 73% customers purchase Sapat tea brand regularly and 19% customers purchase Brooke Bond tea. 4. 52% & 27% of customers are purchasing teas powders once in a month and once in a 15 days and remaining very less percentage of customers purchasing tea powder as & when require. 5. 51% of customers consume 250-500 grams tea powder per month and remaining 20%, 19% customers consume 0-250 & 500-750 gram tea powder per month and very little number of customers consume more than 750 gram tea powder.

From retailers data: 1. Maximum number of retailers keeps the stock of Sapat, Parivar, Brooke Bond tea powder for selling and minimum number of retailers keeps the stock of Tata, Society and other tea powder. 2. Retailers purchase more quantity of Sapat tea as compare to the Parivar, Brooke Bond and other tea for selling per month. 3. More quantity of Sapat and Parivar tea are being sold per month as compare to Brooke Bond, Society and other tea.
66

4. Market share for Brooke Bond tea is 15% and that of the other teas is 85%, therefore market potential for Brooke Bond tea can be taken as those 85%. 5. Maximum number of retailers are having there yearly turnover is between 0-10, 10-20 & 20-30 lakh per year and minimum number of retailers are having there yearly turnover is more than 30 lakh per year. 6. Maximum number of retailer said that, number of customers per day is between the ranges of 50-100, 100-150 & minimum number of retailers said that it is above 200. 7. Maximum number of retailers said, number of customers for purchasing tea powder per day are between 10-20, 0-10, 20-30 and minimum number of retailers said it is betweens 40-50. 8. Out of the total respondent 37% retailers provide home delivery to there customers and they are providing home delivery to 0-50 number of customers per day.

SUGGESTIONS

The Company should provide schemes to retailers to persuade them to make stock and promote the companys product when customer comes blank. The schemes for retailers like cash discount for large quantity purchases, credit facility, gifts for targeted sales, etc. should be adopted for promotion Company should have to keep proper communication with retailers to understand their problems & to identify the changes in market. Company should have to focus on distribution network for getting timely delivery to the retailers.
67

Majority of retailers are not providing home delivery to there customers so there is scope for company to sale the product door to door by appointing company salesman.

Customer is the king in present scenario, so the consumer schemes like quantity discount, price Company should provide attractive displays to those retailers where number of customers visited

off, gifts, should be given. per day is more which helps to induce retailers to promote the brand as it attracts the customers to purchase or think about the product. The company is having very good distribution network. By distributing the goods faster and at reasonable cost the company can make effective use of this channel. The company should also practice direct marketing by means of sales campaign, sales cum exhibition, etc. The company should arrange the awareness camp for retailers and customers to make aware of product to customers and aware of schemes to retailers. This would help both retailer and company to maximize profit. .

8.3 CONCLUSION
To conclude, Researcher can say that Brooke Bond tea is at third position in the Nasik city in respect to the market share. The market leader is Sapat tea in Nasik city. By looking at the overall scenario, and after doing survey in the different areas of Nasik, researcher came to know that market potential for Brooke Bond tea is 101.60 tons and market share for Brooke Bond tea is 15% and it was 29% in 2004 at national level. Therefore market share for Brooke Bond tea is declining and hence company have to implement strong retailer and consumer based strategies to boost there sale for increasing market share. The study was crucial because the facts which were collected from market shall provide the essential data to the organization. It was also important the study even concentrated in the market share and
68

market potential which is the major part for companys growth and progress. This study helps the company in developing new strategies for increasing market share and market potential. In winding up, after finding the market share and market potential for Brooke Bond tea the information submitted into the structured form of report.

69