INTRODUCTION OF HUL

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer

Goods Company with a heritage of over 75 years in India and touches the lives of two out
of three Indians.

HUL works to create a better future every day and helps people feel good,
look good and get more out of life with brands and services that are good for them and
good for others.

With over 35 brands spanning 20 distinct categories such as soaps,

detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged
foods, ice cream, and water purifiers, the Company is a part of the everyday life of
millions of consumers across India. Its portfolio includes leading household brands such
as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Ponds, Vaseline, Lakm,
Dove, Clinic Plus, Sunsilk, Pepsodent, Close-up, Axe, Brooke Bond, Bru, Knorr, Kissan,
Kwality Walls and Pureit.

The Company has over 16,000 employees and has an annual turnover of
around Rs. 21,736 crores (financial year 2011 - 2012). 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 about 46.5 billion
in 2011. Unilever has about 52% shareholding in HUL.

1
1.1 HISTORY OF HUL

Hindustan Unilever Limited (HUL) is India's largest consumer goods

company based in Mumbai, Maharashtra. It is owned by the British-Dutch company
Unilever which controls 52% majority stake in HUL. Its products include foods,
beverages, cleaning agents and personal care products.

HUL was formed in 1933 as Lever Brothers India Limited and came into
being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers,
Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in
Mumbai, India and has employee strength of over 16,500 employees and contributes to
indirect employment of over 65,000 people. The company was renamed in June 2007 as
Hindustan Unilever Limited.

Lever Brothers started its actual operations in India in the summer of 1888,
when crates full of Sunlight soap bars, embossed with the words "Made in England by
Lever Brothers" were shipped to the Kolkata harbor and it began an era of marketing
branded Fast Moving Consumer Goods (FMCG).

Hindustan Unilever's distribution covers over 2 million retail outlets across

India directly and its products are available in over 6.4 million outlets in the country. As
per Nielsen market research data, two out of three Indians use HUL products.

1.2 CURRENT STATUS OF HUL

Today, Hindustan Lever Limited (HLL) is Indias largest Fast Moving

Consumer Goods (FMCG) Company, touching the lives of two out of three Indians and
employing over 40,000. Their businesses are comprised of over 20 distinct categories in
Home & Personal Care Products and Foods & Beverages. Current sales in India are
approximately Rs. 10,000 crores (Rs. 100 billion or USD 223 million) annually,
comprising 4 million tons of goods. HLL is also one of Indias largest exporters.

2
1.3 VISION OF HUL

Unilever products touch the lives of over 2 billion people every day
whether that's through feeling great because they've got shiny hair and a brilliant smile,
keeping their homes fresh and clean, or by enjoying a great cup of tea, satisfying meal or
healthy snack.

A clear direction

The four pillars of our vision set out the long term direction for the company
where we want to go and how we are going to get there:

We work to create a better future every day

We help people feel good, look good and get more out of life with brands and
services that are good for them and good for others.
We will inspire people to take small everyday actions that can add up to a big
difference for the world.
We will develop new ways of doing business with the aim of doubling the size of
our company while reducing our environmental impact.

We've always believed in the power of our brands to improve the quality of
peoples lives and in doing the right thing. As our business grows, so do our
responsibilities. We recognize that global challenges such as climate change concern us
all.

3
ASTERLXCUDNVPGMYOI
2.1 ORGANIZATION STRUCTURE

COMPANY
INDUSTRY
MARKET CAP
BETA
52 WEEKS Hi/Lo
Average Daily Volume
Face Value
OVERVIEW OF HUL

HUL: Hindustan Unilever Limited

4
-
-
-
-
-
-
-
HUL
FMCG
48571 Cr
0.4
306/215
430633
Rs 1
2.2 DISTRIBUTION CHANNEL
Distribution Channel of HUL

HUL

C&F Agents

Redistribution Stockiest

Whole Seller

Rural Retailer Urban Retailer

Customers

2.3 MARKET PENITRATION OF HUL

5
 Penitration
Skincare Shampoos Toothpaste Soaps

10%

43% 21%

26%

2.4 PRODUCTS OF HUL

HUL Products in India

Personal wash:- Laundry:-

- Lux - Surf Excel
- Lifebuoy - Sun Light
- Liril - Rin
- Hamam - Wheel
- Breeze - Ala Bleech
- Moti Beauty Products:-
- Dove - Fair & Lovey
- Pears - Lakme
- Rexona - Ponds
Foods:- - Vaseline
- Kissan(Jam, Ketchup, - Aviance
Squashes)
- Annapurna(Atta & Salt) Hair Care:-
- Knorr Soups - Sunsilk Naturals
- Modern Bread - Clinic
Ice-creams:- - Dove
- Kwality Walls Oral Care:-
Beverages:- - Pepsodent
Tea:- - Close-up
- Brook Bond Deo Spray:-
- Lipton - Axe

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 - Taj Mahal - Rexsona
Coffee:- Water Purifier:-
- Brook Bond Bru - Pureit
Disinfectants:- Dishwasher:-
- Domex - Vim
- Cif
2.5 CATEGORY WISE SALES GROWTH OF HUL
Category wise Sales growth of HUL

Particulars Key Brands Market Size (in Market Share Rank

Rs Cr.)
Fabric Wash Surf Excel 8988 37.5% 1
Wheel
Personal Wash Dove 6632 54.3% 1
Lux
Lifebuoy
Dish Wash 57.3% 1
Skin Ponds 2792 54.5% 1
Shampoo Sunsilk 2168 47.8% 1
Clinic Plus
Talcum Powder 59.7% 1
Packet Tea Red Label 4452 22.7% 1
Coffee Bru 708 44.0% 1
Jams 67.5% 1
Toothpaste Pepsodent 2764 29.5% 2
Close-up
Ketchups 28.1% 2

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2.6 BCG ANALYSIS
BCG Analysis of HUL

Soap & Detergent and Tea are CASH COW for the company. It has high
relative market share and low growth rate. Personal Products and Coffee are STARS for
the company as it have high relative market share as well as high market growth rate.

Only food is a segment which is a QUESTION MARK for the company. The
company have a low relative market share where as it is under high market growth rate.

HUL is taking several steps to capture more market share so that food
segment can also be a part of Star.

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 COMPETITION IN THE FMCG MARKET

Five main competitive strategies are:

Overall low cost leadership strategy

Best cost provider's strategy

Broad differentiation strategy

Focused low cost strategy

Focused differentiation strategy

Here competitive strategy varies from sector to sector and company to

company. Thus, it is not easy to predict a single or to find a single strategy for the whole
sector. When we come on to FMCG Sector main strategies lay behind market strategies,
cost, and quality strategies. Here in this report you are going to get information about
such type of strategies of FMCG giants.

3.1 COMPETITIVE STRATEGIES AND COMPARISON WITH ITC

HUL (Hindustan Unilever Ltd.)

This Company is earlier known as Hindustan Lever Ltd. This is India's

largest FMCG sector company with all type of household products available with it. It
has Home & Personal Care products, and also food and Water Purifier available with it.
According to Brand Equity, HUL has largest no of brands in most trusted brands list 16 of
HUL's brands featured in AC-Nielson Brand Equity list of 100 most trusted brands in
2008 in an annual survey. For the entire year ending March - 2009 net turnover of
company is Rs. 20'239.33 Crore which is 47.99% higher than 31st December 2007's Rs.
13675.43 Crore driven mainly by domestic FMCG's with net profit stood at Rs. 2'496.45
Crore.

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 Products of HUL are: Annapurna; Ayush; Axe; Breeze; Bru; Brooke bond;
Clinic; Dove; Fair & Lovely; Hamam; Liril; Lux; Pears; Ponds; Pepsodent; Pureit;
Rexona; Rin; Sunlight; Surf excel; Vaseline; Wheel.

ITC Limited

This Company was earlier known as Imperial Tobacco Company of India

Ltd. It is currently headed by Yogesh Chander Deveshwar. Company mainly operates in
the industry like Tobacco, Foods, Hotels, Stationary and Greeting Cards with the major
products constitutes Cigarettes, packed foods, hotels, and apparels. For the entire year
ending Mar-2009 the turnover of company is at Rs. 15388 Crore which is 10.3% higher
than previous year's Rs. 13947.53 Crore, driven mainly by robust 20% growth in non
cigarette FMCG business with net profit stood at Rs. 3324 Crore.

Analysis of Both Companies:

HUL & ITC are major companies in FMCG market in India. When we
compare both companies on the basis of their strategies i.e. , their competitive strategies
in the present market. When we look at the present segment breakup for both of the
companies then we came to know that their different products vary too much in the
market.

Now let us take a comparative analysis of both the companies under some
heads:

HUL

Hindustan Unilever (HUL) is the largest pure-play FMCG Company in the

country and has one of the widest portfolio of products sold via a strong distribution
channel. It owns and markets some of the most popular brands in the country across
various categories, including soaps, detergents, shampoos, tea and face creams.

10
ITC

ITC is not a pure-play FMCG company, since cigarettes is its primary

business. It is diversifying into non-tobacco. FMCG segments like foods, personal care,
paper products, hotels and agri-business to reduce its exposure to cigarettes.

Performance:

After stagnating between 1999 and '04, the company is back on the growth
track. In the past three years, till 2008 HUL's net sales have witnessed a CAGR of 11%,
while net profit has posted a CAGR of 17%.

Despite diversification, ITC's reliance on cigarettes is still huge. The tobacco

business contributes 40% to its revenues, and accounts for over 80% of its profit. This
cash-generating business has enabled it to take ambitious, but expensive bets in new
segments and deliver modest profit growth.

Overall Strategy:

HUL always believes in customer friendly products with major emphasis on

low cost overall without compromising on the quality of the product. They are leveraging
the capabilities and scale of the parent company and focusing on the value of execution.
The entire product portfolio is also being tweaked to include premium offerings such as
Pond's Age Miracle and dove shampoo in skin and hair care. HUL introduced Project
Shakti to penetrate the rural market.

ITC is focusing on delivering value at competitive prices. Its tremendous

reach through extensive distribution chain has been a competitive advantage.
Additionally, the company's e-choupal model for direct procurement is well known under
which ITC partners with over 100,000 farmers for spices and wheat procurement and an
even larger number for oilseeds. This kind of rural pedigree is hard to beat.

Growth Drivers:

HUL has been launching new products and brand extensions, with
investments being made towards brand-building and increasing its market share. HUL is

11
also streamlining its various business operations, in line with the One Unilever'
philosophy adopted by the Unilever group worldwide. Introduction of premium products
and addition of new consumers via market expansion will be HUL's growth drivers.

ITC's backward integration to ensure that its products pass efficiently from
the farms to consumers has helped it to cut down supply and procurement costs. ITC's
non-cigarette FMCG business leverages the large distribution network the company has
developed by selling cigarettes over the years. A rich product mix, along with ramp-up of
investments in its new sectors, will be instrumental in charting ITC's growth path.

Risk for both the companies:

For HUL

Being an MNC operating in India, HUL is more conservative in its strategies

than its Indian counterparts. Moreover, given increasing competition, it faces the risk of
being overtaken by domestic players in various categories. Prolonged inflation may lead
to margin contraction, in case HUL is not able to pass on this burden to consumers. The
company's large size also poses a problem, since it does not give HUL the agility to
address the competition it faces from national and regional players.

For ITC

Increased regulatory clamps on tobacco, along with rising tax burden, pose a
business risk for ITC. So, it has started an ambitious diversification plan, which has its
own set of risks. With its foray into the conventional FMCG space, ITC has entered the
high-clutter branded products market. This will burden its resources in terms of ad spend
and brand-building. Creating brand recall and building market share in new products are
ITC's key challenges. Export ban and rising crop prices pose a threat for its agri-business,
taxing its margins.

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3.2 COMPETITIVE STRATEGIES AND COMPARISON WITH P&G

Procter & Gamble was founded in 1837 by William Procter, a British citizen
who immigrated to the United States. The company first sold candles. Procter & Gamble
Co. (P&G, NYSE: PG) is a Fortune 500 American multinational corporation
headquartered in Downtown Cincinnati, Ohio that manufactures a wide range of
consumer goods. As of mid 2010, P&G is the 6th most profitable corporation in the
world, and the 5th largest corporation in the United States by market capitalization,
surpassed only by Apple, Exxon Mobil, Microsoft, and Wal-Mart. It is 6th in Fortune's
Most Admired Companies 2010 list.

P&G is credited with many business innovations including brand

management and the soap opera.

According to the Nielsen Company, in 2007 P&G spent more on U.S.

advertising than any other company; the $2.62 billion spent by P&G is almost twice as
much as that spent by General Motors, the next company on the Nielsen list.

P&G was named 2008 Advertiser of the Year by Cannes International

Advertising Festival.

Proctor & Gamble is a leading member of the U.S. Global Leadership

Coalition, a Washington D.C.-based coalition of over 400 major companies and NGOs
that advocates for a larger International Affairs Budget, which funds American diplomatic
and development efforts abroad.

Major Products of P&G

Coconut- based cleaning and food Laundry and personal cleaning products
products
Purico Tide
Star Dari Crme
Perla Primex
Sunshine Safeguard
Camay Ariel
Mayon Gain
PMC Bonus

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Victor Daz
Ola Lava
Agro Mr. Clean
Fresco Prell
Health care Crest
Vicks Zest
Fibresure Moncler
Thermacare Ivory
Pepto Bismal Laundry, personal care and hair care
Hair care and laundry categories Secret
Pampers Safeguard
Whisper Ascend
Rejoice Ariel
Tide Old Spice
Max Factor Zest
Vidal Sassoon Clairol
Ivory Nice n Easy
Pantene Wella
Dishwashing, fabric care and food Camay
categories
Joy
Mr. Clean
Alldays
Pringles

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STRATEGIES OF P&G

P&G focuses on five core strengths required to win in the consumer products
industry.

15
Consumer Understanding

No company in the world has invested more in consumer and market

research than P&G. We interact with more than five million consumers each year in
nearly 60 countries around the world. P&G invest more than $350 million a year in
consumer understanding. This results in insights that tell us where the innovation
opportunities are and how to serve and communicate with consumers.

Innovation

P&G is the innovation leader in this industry. Virtually all the organic sales
growth delivered in the past nine years has come from new brands and new or improved
product innovation. We continually strengthen our innovation capability and pipeline by
investing two times more, on average, than our major competitors. In addition, we
multiply our internal innovation capability with a global network of innovation partners
outside P&G. More than half of all product innovation coming from P&G today includes
at least one major component from an external partner. The IRI New Product Pacesetter
Report ranks the best-selling new products in our industry in the U.S. every year. Over
the past 14 years, P&G has had 114 top 25 Pacesettersmore than our six largest
competitors combined. In the last year alone, P&G had five of the top 10 new product
launches in the U.S. and 10 of the top 25.

Brand-Building

P&G is the brand-building leader of this industry. It has built the strongest
portfolio of brands in the industry with 22 billion-dollar brands and 20 half-billion-dollar
brands. Eleven of the billion-dollar brands are the #1 global market share leaders of their
categories. The majority of the balances are #2.

Go-to-Market Capabilities

It has established industry-leading go-to-market capabilities. P&G is

consistently ranked by leading retailers in industry surveys as a preferred supplier and as
the industry leader in a wide range of capabilities including clearest company strategy,

16
brands most important to retailers, strong business fundamentals and innovative
marketing programs.

Scale

Over the decades, we have also established significant scale advantages as a

total company and in individual categories, countries and retail channels. P&Gs scale
advantage is driven as much by knowledge-sharing, common systems and processes, and
best practices as it is by size and scope. These scale benefits enable us to deliver
consistently superior consumer and shareholder value.

P&G follows Connect + Develop strategy which enables to bring

innovations to life faster, more economically and more sustainably.

HUL AND P&G ADVERTISEMENT WAR

The new campaign started by Rin, a product of Hindustan Unilever Limited.

It is a direct attack on the Tide Naturals product by Procter & Gamble. Note that when It
is said a direct attack it means an uncensored visual shows the competitor product and
then highlights how the other product is better than the former. The sequence of the ad is
as follows

1. Two ladies are standing on a bus stop, waiting to pick their kids from the school
bus.

2. Both are carrying their shopping basket/bag with them.

3. Lady 1 has Tide Naturals in her bag.

4. Lady 2 has Rin in her bag

5. Both ladies have a look at each others bag and Lady 1 boasts that Tide has a
good fragrance and provides better whiteness/brightness to the clothes

6. In the meantime, the school bus arrives and its shown that the white shirt of
Lady 2s kid is strikingly brighter and whiter then the Lady 1s kid.

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 7. Lady 1 gets astonished by the whiteness seen.

8. Lady 2s kid reacts by asking he mother, as to why is the other lady so observant
and amazed

9. There is a disclaimer during the ad that the analysis has been done by an
independent agency

10. Its then claimed that now there is promotional price of Rs. 25 on Rin as
opposed to the earlier Rs. 35.

As it can be noticed, there is a direct mention of the competitor product along

with the visuals. This one seems to be an absolute direct attack. It is difficult to say if the
ad will continue on TV. Tide would definitely come out with a protest. However, I think
the damage is already done. The main point about the reduced price of Rin would
definitely catch the consumers eye benefiting HUL.

PRICE WAR BETWEEN HUL AND P&G

HUL increase the grammage for wheel

P&G increase the grammage of Tide by 25%

P&G cut the price of ARIEL

HUL reduces the price of Surf Excel in comparison to Ariel

In the year 2010 HUL has reduced 11-17% price in detergents, 7-17% in
toilet soaps and 6-7% in the toothpastes.

HUL cut the price of RIN by 30% (price war with P&G). Due to which P&G
reacts by cutting 20% indirect price (25% grammage hike) in TIDE.

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 DOVE SOUP MARKETING PLAN

4.1 INTRODUCTION

Dove today is in 80 countries making women beautiful everyday and

enabling them to enjoy their own brand of beauty by providing a wide range of personal
care, hair care, and skin care products. Dove launched first in the US in 1957. Dove is
one of the leading brands of Unilever globally. Dove is known to be a keeper of promises
and has given real products to women all over the world. Dove believes that beauty -
feeling and looking your personal best - is the result of proper care. Dove always aims to
deliver products which tangibly improve the condition of skin or hair and give a
pleasurable experience of care, because when you look and feel beautiful, it makes you
feel happier. Its a feeling every woman should experience every day. From the beginning
Dove has always celebrated real women at the heart of everything the brand does and
believes. Real beauty embraces diversity - no woman is or should feel excluded from the
world of beauty that the brand represents. Real women are the brands true inspiration.

Dove got women to experience the real Dove difference, with the Face Test
campaign. Thousands of women across the country put their soap, and Dove, to the test.
They all had the same answer Dove made their skin soft. Irrespective of seasons, our
skin needs moisturizing. With 1/4th moisturizing cream, Dove bars washes provide a
complete moisture care. With 1/4th moisturizing cream blended with cleansers, Dove Bar
cleanses your skin without drying it, which no soap can promise.

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4.2 CURRENT MARKET SITUATION

Dove is a moisturizing soap by Unilever Bangladesh Limited. Doves

brand growth is increasing day by day. Now it is being most popular bathing bar for
women in the whole country. Dove is an international brand and available in more than
80 countries. Dove has recently been voted as UK womens favorite personal care brand,
with over a third of British women purchasing its products. Currently its market share is
growing. Marketing mix strategies i.e. Four Ps of marketing strategies are describing
below.

4.2.1. Product:

Irrespective of seasons, our skin needs moisturizing. With 1/4th

moisturizing cream, Dove Bars provides a complete moisture care. Dove makes skin
softer. In Bangladesh Dove beauty bars are available in three variants in two sizes, 90 ml
and 135 ml.

Dove White Beauty Bar: Contains 1/4th moisturizing cream and mild cleansers that
leave skin clean, soft and smooth.

Dove Pink Beauty Bar: Contains1/4thmoisturizing cream richly blended with its mildest
cleansers, no other beauty bar has more skin-natural moisturizers than Dove. Everyday
moisture is the key to beautiful skin.

Dove Fresh Moisture Beauty Bar: Contains an ultra-light hydrating formula and the
crisp, soothing scent of cucumber and green tea provides a refreshing, uplifting sensation
for once skin.

4.2.2. Price:

Price is only one P among 4Ps that genrate some revenue for the cpmpany
and rest all incurred some cost of the company. Unilever usually practised value-based

20
pricing strategy for the products. Dove soaps 90ml bars price 75 taka and 135ml bars
price is 98 taka. Dove soaps target consumers are middle to upper-income women.

4.2.3. Promotions:

For the brand recognization and sales promotion Dove use different types
of media for promotion and advertisement such as Print Media, Broadcasting Media,
Display Media and Internet Media. Dove telecast advertisement in Radio, Television,
Billboards, Newspapers, Magazines, Facebook, Twitter etc. In the Television ads Dove
shows Dove is better than soap. And you can prove it. Wash one side of your face with
soap. Use Dove on the other. Feel the moisturizing, softer, smoother Dove difference.
You'll never wash with soap again. So Dove told us that Dove is a better than a soap. Its
not an ordinary soap. Its totally different than others. Sometimes dove give various sales
promotions to the customer via Facebook, Twitter, Television and Radio. They give
discounts and other free items with every purchase or bundle purchase of Dove soap.

4.2.4. Placement:
Dove soap follows common distribution system. That means company to
wholesaler to retailer to consumer. It has made his strategy like that in every small or big
shop customer will be able to find out the product. Unilever has mass distribution channel
whole over the country. So in every small or big shop, super shop has Dove soap is
available. This distribution network directly covers cities million consumers.

4.3 COMPETITIVE ANALYSIS

There are very few competitors of Dove soap are available in the market.
Dove is a higher quality and costly than other local soaps. Dove soaps competitors are
Lux, Sandalina, Olay and Nivea. Lux is Doves internal competitor which is also owned
by Unilever Bangladesh Limited. Sandalina is a local soap which can be a tough
competitor for Dove. Now-a-days Olay and Nivea give a tough competition. Olay and
Nivea is imported soap.

21
4.4 SWOT ANALYSIS
The SWOT (Strength, Weakness, Opportunity and Threat) analysis is a
useful tool for an industry. An internal survey is required for strength and weakness and
an external survey is required for opportunity and threat. Dove soaps SWOT analyses are
summarizes.

4.4.1. Strength:

1. Brand wisdom and widespread distribution.

2. Competitive Price.
3. Growth in cascade product.
4. Brand devotion.
5. Adequate to encourage consumers to feel and look their best.
6. Wide range of crossroads that finish appeal to every last (predicate) ages.
7. Effective advertising, free publicity.

4.4.2. Weaknesses:
1. High level of competition.
2 .High levels of expensive advertising needed and maintained.
3. Special offers counter vigorous on growth.
4. Soap bars undergo from ageing image.
5. Some products are seen as a compassion product not essential use.
6. Widespread distribution and snitch loyalty means that market growth is difficult.
7. Some consumers are let down on performance.

4.4.3. Opportunities:
1. Target markets not yet capitalized teens.
2. Continuous innovation.
3. Eco-friendly market segment/natural products.
4. Target teen specific concerns (medicated flake off opportunities)
5. Target male customers.
6. Long pending opportunity of tapping into the market developing beauty products
for men.

22
 7. Unified advertising technique used by Dove.

4.4.4. Threats:
1. New launch of other brands with similar products.
2. Recent recession (less available income)
3. Consumer allergies.
4. Decline in Bath products.
5. Environmental awareness.
6. Dove faces tough competition from Olay, Nivea, and Lux.
7. Olay, Nivea both are getting stronger as they grow and their market is also
expanding.

4.5 OBJECTIVES AND ISSUES

Dove develops its marketing objectives very carefully as it is devoted to

expand the definition of beauty for all women for the reason that they believe real beauty
comes from your inner self. All successful marketing strategies were basically due to
wisely planned marketing objectives of Dove which we are going to discuss here. Our
main target customers are women. Now we will target male consumers also. The main
objectives are:

New target segment: male.

To be a focus for nationwide TV and print media reporting.
To increase sales in upcoming years.
To increase brand awareness among people.
Increasing the distribution channels in more than 80 percent retailers
shop and supermarkets.
Increase more advertisement campaigns.
Maintain a good public relationship.
Maintain the brand image by providing good product and service.

23
4.6 MARKETING STRATEGY

Dove Campaign for Real Beauty, including Evolution. Doves marketing

strategy is based on positioning of product differentiation. Dove is better quality soap.
Unilever usually practice value-based pricing. Dove soaps price is higher than other
brands soap and competitors. So our target consumers are middle to upper-income
women who need a better quality soap for both body and face. Usually other brands soaps
are not good enough for our face as our face skins are very sensitive. Dove is a right
choice for our face and also for our body.

Positioning:

We are positioning dove as the high quality, moisturizing soap which can be
used anywhere in body and face. Everyone can use dove soap easily even if they have
very sensitive skin. This differentiates dove soap by other brands soap.

Marketing communication strategy:

Dove has a strong brand image whole over the world. Everyone knows about
the Dove. For creating awareness among people and sales promotions we will use all
kind of media such as Print media (Newspapers, Magazines), Display media (Bill Board,
Signs), Broadcasting media (Radio, Television), and Online media (Company Websites,
Facebook, Twitter, Google ad-sense) etc. for advertisement. We also use short time sale
promotions like buy 3 get 1 free bundle offer, 10-25 % extra free, 5-10 taka discounts,
free other Unilever products such as mini packs of Sunsilk shampoo, Vaseline etc. We
start Dove campaign for women. We use door to door marketing, free sampling and
feedback and arrange several seminars in various places and colleges and universities. We
also try to sponsor some reality shows where women will be highlighted. At last, we are
planning to make Bangladeshi model and actress Joya Ahsan as our brand ambassador.
We are making agreement on it. These attempts will help us to achieve our goals and
objectives.

24
4.7 ACTION PROGRAM

Dove soap is a renewed soap and most popular in the world. Dove soap
launch many years ago in our country. Everyone knows about it very well. For
reorganization and set up in our consumer minds we will start our promotional activities.
For year 2014, we divide the year by 6 steps and take step for 2 months. The action
programs we will use over the year to achieve our goals are summaries below.

January-February

We will start door-to-door campaign for Dove soap. We will visit a particular
area for advertisement of dove. We also visit some colleges and universities. We will
create buzz marketing by giving free samples to product user, opinion leaders in the
society.

March-April

We will start an integrated Print/Media/Online marketing targeting our

women consumers. We will telecast ads in all kind of media such as in Radio, Television,
Newspaper and Bill boards.

May-June

As our multimedia advertisement continuous, we will add consumer sales

promotion such as free same product or alternative product, extra product, discount offer,
various types of contest, raffle draws, scratch cards, coupon etc.

July-August

We reduced the amount of multimedia advertisements and sales promotions

as we will be well recognized brand in the country.

September-October

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 We reduced the amount of multimedia advertisements and sales promotions
as we will be well recognized brand in the country.

November-December

At the end of the year we will sign Joya Ahsan as our brand ambassador. We
will make some new television ads where Joya will be shown on those ads telling our
consumers to buy Dove soap because she also uses it.

PRODUCT DIFFERENTIATION STRATEGY

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 Surf Excel Ariel
st
Launched in 1959 in India as 1 Launched in 1991 in India as

Detergent Powder. Detergent Powder.

One of the brands under HUL One of the brands under P&G

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5.1 SURF EXCEL PRODUCT RANGE
Surf Excel Quick Wash:

Surf Excel Quick Wash with X-tra clean particles combines the power of
strain removing products like blue, bleach and lemon. Multiple stains are removed with
just 1 product.

Surf Excel Easy Wash:

Surf Excel Easy Wash is a superfine powder, in which tough stains are taken
off in a jiffy. It is made with superior technology which unleashes the power of 10 hands.

Surf Excel Matic:

Works in high water levels of front load washing machines. It has hand rub
action power and is value for money. For 2 different types of washing machines, it offers
2 products: (A) Surf Excel Matic Top Load, (B) Surf Excel Matic Front Load.

Surf Excel Liquid Wash:

Surf Excel Liquid Detergent works with the Dip Dap Drop formula. It has
better dissolution with superior fragrance. It offers Color care, and is safe for hands.

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5.2 ARIEL PRODUCT RANGE
Ariel Complete+:

Ariel Complete+ removes tough stains in just 1 wash. Especially formulated

for semi automatic washing machines, Ariels cutting edge technology to provide
impeccable cleaning.

Ariel 24 Hour Fresh:

Ariel 24 Hour Fresh provides tough stain removal along with long lasting
fragrance. Advanced perfume technology provides impeccable clothes along with long
refreshing fragrance that lasts upto 24 hours.

Ariel Matic:

It provides the best stain removal in one wash. Especially formulated for
Fully Automatic Washing Machines. Best used for Front & Top Loading Fully Automatic
Washing Machines.

Ariel Color & Style:

Ariel Color & Style is specifically created for colored clothes to remove
tough stains and prevent color fading. With Color Lock Technology, it ensures colored
stay shining like new.

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5.3 ADVERTISEMENTS OF PRODUCTS

5.4 S.T.P. OF PRODUCTS

Surf Excel
S- Segmentation:

Premium Segment, Detergent

T- Targeting:

Blue: All mid scale premium segment buyers

Matic: Washing machine users

Bar: Medium and low income families

Quickwash: consumers in water-scarce and hard-water regions

Daag Achhe Han

P-Positioning:

Positioned as a quality product at comparatively lower price in premium segment.

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Ariel

S-Segmentation:

Premium Segment, Detergent

Nuclear families with high income levels.

T-Targeting

Upper middle class- Rich class of the society wanting superior quality.

Washing machine users are also targeted by its product Ariel matic.

Customers wanting fragrance and color prevention.

#ShareTheLoad

P-Positioning

Positioned as superior stain remover, offering fragrance and preserving colors, in a

premium price.

5.5 DIFFERENCES IN PRICE

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 CORPORATE SOCIAL RESPONSIBILITIES

HUL shows more interest in CSR also as-

From 2004 to 2008 it has reduced the emission of Carbon di-oxide by more than
25% in the manufacturing.

HUL follows 5 R strategies to deal with the Green House Gases (GHG):

Reduce
Re-Use
Recycle
Recover
Renew
HUL uses Agriculture wastages as the fuel (Ground nut shells, saw dust, Coconut
shells, cashew etc)
DOMEX, a product of HUL is planning to sponsor the world toilet day on the
19th November every year.

PROJECT SHAKTI

ICICI bank is the financial partner of HUL in the project Shakti

As competition is increasing day by day, its difficult to maintain the leader

position & to further strengthen the distribution network HUL made a project called
project SHAKTI which will serve the following purpose:

A) To Reach:

Small, scattered settlements and poor infrastructure make distribution difficult.

Over 500,000 villages not reached directly by HUL.

B) To Communicate:

Low literacy hampers effectiveness of print media.

Poor media-reach: 500 million Indians lack TV& radio.

C) To Influence:

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 Low category penetration, consumption.

D) Awareness:

Per capita consumption in Unilever categories is 33% of urban level.

Project Shakti

HUL soon realized that although it was enjoying a greater penetration in the
rural market when compared with its competitor such as Nirma and ITC, its direct reach
was restricted to only 16%. The FMCG giant was desperate to increase this share. HUL
saw its dream fulfillment in the vast Indian rural market. The company was already
engaged in rural development with the launch of the Integrated Rural Development
Program in 1976 in the Etah district of Uttar Pradesh. This program was in tandem with
HUL's dairy operations and covered 500 villages in Etah. Subsequently, the company
introduced similar programs in adjacent villages. These activities mainly aimed at
training farmers, animal husbandry, generating alternative income, health & hygiene and
infrastructure development. The main issue in rural development was to create income-
generating prospects for the poor villagers. Such initiatives, linked with the company's
core business, became successful and sustainable and proved to be mutually beneficial to
both the company and its rural customers. However, much more is remained to be done.

Project Shakti was conceived following the pioneering work carried out by
Grameen Bank of Bangladesh, Self Help Groups (SHGs) of rural women were formed by
several institutions, NGOs and government bodies in villages across India. This group of
usually 15 members contributed a small amount of money to a common pool and then
offered a micro-credit to a member of the group to invest in a commonly approved
economic activity. Partnering with these SHGs, HUL started its Project Shakti in
Nalgonda district of Andhra Pradesh in 50 villages in the year 2000. The social side of the
Project Shakti was that it was aimed to create income-generating capabilities for
underprivileged rural women, by providing a sustainable micro enterprise opportunity,
and to improve rural living standards through health and hygiene awareness. Most SHG
women viewed Project Shakti as a powerful business proposition and are keen

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participants in it. There after it was extended in other states with the total strength of over
40,000 Shakti Entrepreneurs.

HUL offered a wide range of products to the SHGs, which were relevant to
rural customers. HUL invested significantly in resources that work with the women on
the field and provide them with on-the-job training and support. HUL provided the
necessary training to these groups on the basics of enterprise management, which the
women need to manage their enterprises. For the SHG women, this translated into a
much-needed, sustainable income contributing towards better living and prosperity.
Armed with micro-credit, women from SHGs become direct-to-home distributors in rural
markets.

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 CONCLUSIONS & RECOMMENDATIONS

HUL's up-and-running business model is a treat for investors seeking

exposure in the FMCG segment. The company has delivered in the past and has the
potential to do better in future. In short term. HULs growth story is evolving.

ITC is eyeing the pie which HUL and other FMCG players currently enjoy.
Though risky, the company's business model will pay off in the long run. ITC has proved
its expertise in the cigarettes, hotels, paper and agri-businesses. Investors who want to
bank on its execution ability in FMCG can consider the stock with a long-term horizon.

According to us the companies should continue with their CSR and also
continue with their strategies. The thing that needs to be changed is that, ITC should go
for more diversification in Non cigarette segment (FMCG) while HUL should come up
with the new strategies that could take the new product forward to create a new segment.

Hindustan Lever is in a position to expand their business competencies to the

agricultural and retail sectors in order to reach Indias enormous population with high-
quality food products. A recommendation For HUL is that it should focus on rural area
more.

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 BIBLIOGRAPHY

1) www.hul.co.in
2) www.hulshakti.com
3) http://www.hul.co.in/investorrelations/
4) http://www.hul.co.in/brands-in-action/detail/Dove/303749/
5) https://www.academia.edu/402825/Hindustan_Uniliver_Limited-
_a_study_on_the_marketing_concepts
6) http://www.slideshare.net/mobile/arjunparekh/detergent-wars-in-india-surf-excel-
arial-nirma-wheel-tide-ghari
7) Naveen Vyas(Researcher): Initiating Coverage Hindustan Unilever
Limited(Analysis)(Dec,2011)

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