FMCG Final Copy

8/8/2019 FMCG Final Copy

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CERTIFICATE

SOM-LALIT INSTITUTE OFBUSINESS ADMINISTRATION

Navrangpura, Ahmedabad -380 009.

This is to certify that Group Project on COMAPARATIVE

ANALYSIS OF HLL, NIRMA AND P&G AS FMCG MAJORS FOR

AHMEDABAD MARKET is submitted to Som-Lalit Institute of

Business Administration by the group of T.Y.B.B.A. (Name of the

students are mentioned below) for the year 2006-2007 in partial

fulfillment of Gujarat University requirements for the award of the degreeof Bachelor of Business Administration.

Roll No Name

75

109

115

119

121

134

141

143

153

156

Kosha K. Patel

Ravi K. Sangani

Jaini D. Shah

Nishita J. Shah

Simoli P. Shah

Hemant B. Soni

Pratik D. Tilva

Jigar S. Vachhani

Nikita D. Patel

Nidhi N. Shukla

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_______________ _________________ _________________

DIRECTOR PROJECT IN-CHARGE EXTERNAL

(Prof. Deepal Joshi) EVALUATOR

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ACKNOWLEDGEMENT

The feeling of gratefulness to anyones help directly arises form thebottom of the heart. A small but an important and timely help can provedto be a mile stone in ones life. Every human being has such kind of

experience. Being human beings. We also have the same feeling of gratefulness as today. We have achieved an important mile stone in ownlife the completion of this project.

The project is dedicated to all the people whom we met, toguidance, talked, interviewed and learned something form them. At thisoccasion we want to grab this opportunity to acknowledgement mysincere thanks to all of them while submitting this report.

To start with college, we would like to thanks the Director of thecollege Mr.R.H.Vyas and the Professors . Their full co-operation in myproject helped me in bringing my best to make this project successful.

We have no words to express gratitude to my project guide facultyMrs. Deepal Joshi who continuously guided us till the last word of thisproject report. Undoubtedly, the practical as well as theoretical knowledgethat we have gained from her which helps us in enhancing our career and

managing things in a better way. This experience has helped us in gaininga lot of practical knowledge, which we have never gained only throughbooks.

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

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PREFACE

With India Inc. scaling new heights every day and industrial sectorsigning with a suns brightness, everyday is optimistic that Indian FMCGindustry is poised for new growth in coming years.

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

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

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

Studying FMCG sector by compounding 3 major players in the arenaprovides us with ample opportunity to study real marketing where

Consumer is king.

It helped us in understanding consumer behavior, brand positioning,

differentiation of brands and marketing strategies of the company.

The sector is also characterized by immense competition that isleading to innovation in products. With the FDI approval in retail sectorand with advent of organized retailing, we can say that lives of Indian willnever be same as they are going to be benefited from it immensely.

One of the reasons why we selected companies like HLL, P&G and

Nirma is evident from the fact that they have presence in almost allconsumer goods categories and have created brands that are themselvessynonymous with their respective segments.

With the help of this we have tried to learn:

1. To work in team.

2. To get practical knowledge about the Market Research.

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CHAPTER 1

INTRODUCTION

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WHAT IS FMCG ?

Marketing fast-moving consumer goods (FMCG) is one of the purest and most sophisticated forms of selling. The great FMCG-sellingcompanies, such as PROCTER & GAMBLE invented mass marketingalmost single-handedly and grew to become multinational giants in theprocess. FMCG played a major role in the rise of consumerism during the

twentieth century and drove the development of the media from thedays of the sponsored radio show of the 1920s. Selling FMCG provided thefunds for the mushrooming growth of television and the establishment of advertising agencies as a vast, lucrative industry. In the West, and nowincreasingly in the rest of the world, almost everyone's lives are touchedby FMCG.

Fast Moving Consumer Goods (FMCG) , also known as ConsumerPacked Goods (CPD) , are products that have a quick turnover , andrelatively low cost. Consumers generally put less thought into the

purchase of FMCG than they do for other products. Though the absoluteprofit made on FMCG products is relatively small, they generally sell inlarge numbers and so the cumulative profit on such products can belarge.

Examples of FMCG generally includes a wide range of frequentlypurchased consumer products such as toiletries, soap, cosmetics, teethcleaning products, shaving products and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products and plasticgoods. FMCG may also include pharmaceuticals, consumer electronics,

packaged food products and drinks, although these are often categorizedseparately. FMCG products can be thought of in contrast with consumerdurables, which are generally replaced less than once a year (e.g. kitchenappliances).

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

In India, power has shifted from the manufacturers to theretailers, and competition has intensified. It's often a bitter struggle, assalespeople for supermarket suppliers battle for space on the shelves andare trapped in a cycle of wasteful trade promotions that they cannotcontrol. Retailers are consolidating, but are only just beginning to stepoutside their home territories. If they are successful, it is likely to drivedown manufacturers' prices, hurting brand equity.

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HINDUSTAN LEVER LIMITED

HISTORY

In the summer of 1888, visitors to the Kolkata harbour noticed crates full

of Sunlight soap bars, embossed with the words "Made in England byLever Brothers". With it, began an era of marketing branded Fast MovingConsumer 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 Daldabrand came to the market in 1937.

In 1931, Unilever set up its first Indian subsidiary, Hindustan VanaspatiManufacturing Company, followed by Lever Brothers India Limited (1933)and United Traders Limited (1935). These three companies merged toform HLL in November 1956; HLL offered 10% of its equity to the Indianpublic, being the first among the foreign subsidiaries to do so. Unilevernow holds 51.55% equity in the company. The rest of the shareholding isdistributed among about 380,000 individual shareholders and financialinstitutions.

The erstwhile Brooke Bond's presence in India dates back to 1900. By1903, the company had launched Red Label tea in the country. In 1912,Brooke Bond & Co. India Limited was formed. Brooke Bond joined theUnilever fold in 1984 through an international acquisition. The erstwhileLipton's links with India were forged in 1898. Unilever acquired Lipton in1972, and in 1977 Lipton Tea (India) Limited was incorporated.

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

Since the very early years, HLL has vigorously responded to the stimulusof economic growth. The growth process has been accompanied by

judicious diversification, always in line with Indian opinions andaspirations.

The liberalization of the Indian economy, started in 1991, clearly markedan inflexion in HLL's and the Group's growth curve. Removal of theregulatory framework allowed the company to explore every singleproduct and opportunity segment, without any constraints on productioncapacity.

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CORPORATE PURPOSE

HLLs mission is to add Vitality to life. The company meets everydayneeds for nutrition; hygiene and personal care with brands that helppeople feel good, look good and get more out of life.

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

The companys long-term success requires a total commitment toexceptional standards of performance and productivity, to workingtogether effectively, and to a willingness to embrace new ideas and learncontinuously.

To succeed also requires, they believe, the highest standards of corporate behavior towards everyone they work with, the communitiesthey touch, and the environment on which they have an impact.

This is their road to sustainable, profitable growth, creating long-term value for their shareholders, their people, and their businesspartners.

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HLLS VISION

Hindustan Lever Limited (HLL) supplies high quality goods and services tomeet the daily needs of consumers and industry. In doing so, theCompany is committed to exhibit the highest standards of corporatebehaviour towards its consumers, employees, the societies and the worldin which we live.

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

The company is committed to making its products environmentallyacceptable, 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 preventor minimize, encompassing all available knowledge and information, therisk of an adverse environmental impact arising from processing of theproduct, its use or foreseeable misuse.

This Policy document reflects the continuing commitment of the Board forsound Environment Management of its operations. The Policy applies todevelopment of a process, product and services, from research to full-scale operation. It is applicable to all company operations covering its

plantations, manufacturing, sales and distribution, research & innovationcenters and offices. This document defines the aims and scope of thePolicy as well as responsibilities for the achievement of the objectives laiddown.

Their vision is to continue to be an environmentally responsibleorganization making continuous improvements in the management of theenvironmental impact of our operations.

They will achieve this through an Integrated Environment Managementapproach, which focuses on People, Technology and Facilities, supportedby Management Commitment as the prime driver.

The Environment PolicyHindustan Lever Ltd. (HLL) is committed to meeting the needs of customers and consumers in an environmentally sound manner, throughcontinuous improvement in environmental performance in all ouractivities. Management at all levels, jointly with employees, is responsibleand will be held accountable for company's environmental performance.

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PRESENT STATURE

Hindustan Lever Limited (HLL) is India's largest Fast MovingConsumer Goods company, touching the lives of two out of three Indianswith over 20 distinct categories in Home & Personal Care Products andFoods & Beverages. They endow the company with a scale of combined

volumes of about 4 million tones and sales of Rs.10,000 crores.

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

The mission that inspires HLL's 36,000 employees, including over1,350 managers, is to "add vitality to life." HLL meets everyday needs fornutrition, hygiene, and personal care with brands that help people feelgood, 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 restof the shareholding is distributed among 380,000 individual shareholdersand 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 acrossthe country and span many categories - soaps, detergents, personalproducts, tea, coffee, branded staples, ice cream and culinary products.They are manufactured in close to 80 factories. The operations involve

over 2,000 suppliers and associates. HLL's distribution network,comprising about 7,000 redistribution stockists, directly covers the entireurban population, and about 250 million rural consumers.

HLL has traditionally been a company, which incorporates latesttechnology in all its operations. The Hindustan Lever Research Centre(HLRC) was set up in 1958, and now has facilities in Mumbai andBangalore. HLRC and the Global Technology Centers in India have over200 highly qualified scientists and technologists, many with post-doctoralexperience acquired in the US and Europe.

HLL believes that an organizations worth is also in the service itrenders to the community. HLL is focusing on health & hygiene education,women empowerment, and water management. It is also involved ineducation and rehabilitation of special or underprivileged children, care forthe destitute and HIV-positive, and rural development. HLL has alsoresponded in case of national calamities / adversities and contributesthrough various welfare measures, most recent being the village built byHLL in earthquake affected Gujarat, and relief & rehabilitation after theTsunami caused devastation in South India.

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Over the last three years the company has embarked on anambitious programmed, Shakti. Through Shakti, HLL is creating micro-enterprise opportunities for rural women, thereby improving theirlivelihood and the standard of living in rural communities. Shakti alsoincludes health and hygiene education through the Shakti VaniProgrammed, and creating access to relevant information through theiShakti community portal. The programmed now covers about 50,000

villages in 12 states. HLL's vision is to take this programmed to 100,000villages impacting the lives of over a 100 million rural Indians.

HLL is also running a rural health programmed Lifebuoy SwasthyaChetana. The programmed endeavours to induce adoption of hygienicpractices among rural Indians and aims to bring down the incidence of diarrhoea. It has already touched 70 million people in approximately15000 villages of 8 states. The vision is to make a billion Indians feel safeand secure.

If Hindustan Lever straddles the Indian corporate world, it isbecause of being single-minded in identifying itself with Indian aspirationsand needs in every walk of life.

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PRODUCTS

BATHING SOAPS

(1) Breeze soap

Breeze Scent Magic is the soap which fulfills the aspirations of women of rural India. Breeze has offered them 'beauty at an affordableprice', making them look and feel beautiful.

Research and consumer visits have shown that the desire for greatfragrance featured highest in the daily beauty regime of discount-soapusers. Breeze explores this through the proposition of 'scent in a soap-

Scent ka kamaal, ab sabun mein' and explicitly propagates the brandpromise of the "Hameshaa kuchh extra". It delivers all this and stillmatches consumer's needs in terms of price and quantity offered, stayingtrue to its word.

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

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(2) Dove Shop

Dove soap, which was launched by Unilever in 1957, has beenavailable in India since 1995. It provides a refreshingly real alternative forwomen who recognize that beauty is not simply about how you look, it isabout how you feel.

The skin's natural pH is slightly acidic 5.5-6. Ordinary soaps tend to bealkaline, with pH higher than 9. Dove is formulated to be pH neutral (pHbetween 6.5 and 7.5) and to be mild on skin. This makes it suitable for allskin types for all seasons. While Dove soap bar is widely available acrossthe country, Dove Body Wash is available in select outlets.

Globally, Dove has been extended to many other countries. Since the1980s, for example, Unilever has launched a moisturizing body-wash,deodorants, body lotions, facial cleansers and shampoos and conditioners,providing a comprehensive range of solutions to bring out true innerbeauty.

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(3) Hamam soap

When it comes to soaps, Hamam is considered to be the mostreliable option. Launched in 1934, Hamam has traditionally been a soap

that takes care of your skin in a natural way.According to a research conducted By Indica Research in May 2003,

78% of Doctors in Tamil Nadu recommend Hamam.

Besides being a perfectly balanced soap, Hamam takes on a verymodern and trendy look. Hamam's enhanced fragrance now provides alonger lasting freshness. The new attractive oval shaped Hamam comes inan attractive and modern packaging. The ingredients that are used inHamam - Neem, Tulsi and Aloe Vera - by themselves have greattherapeutic values. Hamam, the brand is very true to its tagline that says,"Everything in life is about balance" .

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(4) Lifebuoy soap

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

The world's largest selling soap offers a compelling health benefit tothe entire family. Launched in 1895, Lifebuoy, for over a 100 years, hasbeen synonymous with health and value. The brick red soap, with itsperfume and popular Lifebuoy jingle, has carried the Lifebuoy message of health across the length and breadth of the country.

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

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

The new Lifebuoy is targeted at today's discerning housewife with amore inclusive "family health protection for my family and me"positioning. Lifebuoy has made a deliberate shift from the male, victoriousconcept of health to a warmer, more versatile, more responsible benefitof health for the entire family. At the upper end of the market, Lifebuoyoffers specific health benefits through Lifebuoy Gold and Plus. LifebuoyGold (also called Care) helps protect against germs which cause skinblemishes, while Lifebuoy Plus offers protection against germs whichcause body odour.

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(5) Liril soap

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

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(6) Lux soap

Lux stands for the promise of beauty and glamour as one of India's

most trusted personal care brands. Lux continues to be a favorite withgenerations of users for the experience of a sensuous and luxurious bath.

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

Lux is available in four different variants Exotic flower petals and

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

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(7) Pears soap

Introduced in India in 1902, Pears soap has no equal. It is gentleenough, even for baby's skin.

Pears is manufactured like any other soap, but unlike inconventional soaps, the glycerine is retained within the soap. That is thecause if its unique transparency. After manufacturing, the soap ismellowed under controlled conditions over weeks. At the end of thismaturing process, it is individually polished and packed in cartons.

Today Pears is available in three variants - the traditional ambervariant, a green variant for oil control and a blue variant for germprotection.

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(8) Rexona soap

Rexona is one of India's pioneer brands in family soaps. Launchedin 1947, it was positioned as a natural skin care soap to give silky,glowing skin.

Since then the product has been constantly improved to keep upwith the expectations of the consumers.

In 1989 coconut was introduced in Rexona for the first time tostrengthen the overall skincare appeal of the brand. Rexona has nowbeen relaunched with cucumber extracts, in addition to coconut oil andmoisturizing milk cream. Its creamy lather purifies the skin, leaving itclear and flawless. It has also been enhanced with a perfume that lingerswell after a bath

Rexona is one of India's pioneer brands in family soaps. Launchedin 1947, it was positioned as a natural skin care soap to give silky,glowing skin.

Since then the product has been constantly improved to keep upwith the expectations of the consumers.

In 1989 coconut was introduced in Rexona for the first time tostrengthen the overall skincare appeal of the brand. Rexona has now

been relaunched with cucumber extracts, in addition to coconut oil andmoisturizing milk cream. Its creamy lather purifies the skin, leaving itclear and flawless. It has also been enhanced with a perfume that lingerswell after a bath.

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(9) Ayush soap

Ayush was launched in 2002. With Ayush HLL brings to you a rangeof Ayurvedic Health Care & Personal Care Products with a superiorsensory experience, scientifically tested and proven functionality andinternational standards of quality and safety, for a uniquely pleasurableand holistic Ayurvedic experience.

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

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

The Ayush Therapy Centers provide personalized service and advicein positive health and stress relief, aches and pain relief, skin and hair

care and weight loss consultation.

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DETERGENTS

(1) Rin

Every Indian woman will tell you how her clothes dazzle with the

power of Rin. The lightning flash mnemonic with the famous baseline'Whiteness Strikes with Rin' is remembered till date. The dazzling flash of light has become a synonym with the brand, ever since this iconic brandwas launched in 1969.

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

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(2) Wheel

Wheel is India's number one detergent brand. Launched in 1987, itcleans effectively with lesser effort, making a laborious chore like washinglight and easy. Moreover, Wheel does not burn hands or harm clothes likesome other detergents, which contain a high percentage of soda.

Ever since its relaunch in 2001, with the new positioning of 'bestclean with less effort', Wheel has been growing strongly. Researchshowed that consumers seek a solution to heavy duty laundry, like bedsheets and curtains. Developing on this insight, wheel sought to eliminatethe trouble of tough dirt or heavy-duty laundry. Mass market consumershave welcomed the solution, making it the number one.

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(3) Surf excel

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

constantly upgraded itself over the years, to answer the constantlychanging washing needs of the Indian homemaker. Today Surf Exceloffers outstanding stain removal ability on a wide range of stains. Thismeans that mothers now have the freedom to let their kids experience lifewithout worrying about stains.

Surf Excel quick wash is powered with a path-breaking technology-it reduces water consumption and time taken for rinsing by 50%. It is asignificant benefit, given the acute water scarcity in most of India.

Surf Excel is available in 3 variants: Surf Excel Blue, Surf ExcelQuick Wash and Surf Excel Automatic. So whatever be the need, Surf Excel hai na . Surf Excel Automatic is formulated with high qualityphosphate builders and multi-active surfactant system to deliver superiorclean in washing machine wash protocol. Even under stressed washconditions of high soiling and full load, Surf Excel Automatic is designed toprovide excellent detergency and a very good wash.

In addition, Surf Excel Automatic also contains detergency aids suchas anti-redeposition agents and optical brighteners. This formulation isfurther fortified with colour safe bleach system and enzymes for superiorstain removal in washing machines.

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HAIR CARE SHAMPOOS

(1) Sunsilk Natural

Launched in 1964, Sunsilk is the largest beauty shampoo brand inthe country. Positioned as the 'Hair Expert' , Sunsilk has identifieddifferent hair needs and offers the consumer a shampoo that gives herthe desired results.

The benefits are more compelling and relevant since the variantsare harmonized in terms of the product mix - fragrance, colour and

ingredients are all well linked to cue the overall synergy. The range comesin premium packaging and design. The accent is on "It knows you, andhence knows exactly what your hair needs".

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(2) Clinic

Clinic Plus Health shampoo was launched in India in the year 1987.It is India's largest selling shampoo, offering the five most important hair

health benefits: strengthens weak hair, prevents hair breakage, softensrough dry hair, shine for thick and healthy hair, and contains anti-dandruff ingredient.

The franchise also includes Clinic All Clear Total, first introduced in1996. It is a dual shampoo it not only fights the last dandruff flake, butalso adds back lost nutrients to make hair healthy and beautiful. Clinic AllClear Total is a dandruff solution for everyday use.

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SWOT A NALYSIS OF HLL

STRENGTHS

HLL enjoys a formidable distribution network covering over 3400distributors and 16 million outlets. This helps them maintain heavyvolumes, and hence, fill the shelves of most outlets. The new salesorganization named 'One HLL' brings "Household and Personal Care" andfoods distribution networks together, thereby aligning all the unitstowards the common goal of achieving success. HLL has beencontinuously able to grow at a rate more than growth rate for FMCGSector, thereby reaffirming its future stronghold in Indian market.

Project Shakti - Rural India is spread across 627,000 villages andpossesses a serious distribution challenge for FMCG Cos. HLL has come upwith a unique and successful initiative wherein the women from the ruralsector market HLL products, and hence, are able to reach the samewavelength as of the common man in village. Apart from product reach,the initiative also creates brand awareness amongst the lower strata of society. This has brought about phenomenal results.

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WEAKNESSES

HLL's market dominance, originating from its extensive reach andstrong brand presence, allowed it to raise the prices even as rawmaterials were getting cheaper. Hence, though the volumes decreased,the margins grew, and company was able to earn more profits. But highermargins attracted competition in areas of operations. HLL's strategyremained focused on creating power brands and earning higher margins.It was not left with any other option but to try cutting down the costs inorder to protect volumes, if not increase it.

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

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

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

OPPORTUNITIES

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

Well-placed to take advantage of future FMCG Growth - HLL reachout 80% of 207 million households in the country through various brands.It has a very well-defined product portfolio spread across many productcategories.

THREATS

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

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

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PROCTER & GAMBLE

HISTORY

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

Despite their intentions, however, both men ended their travels when

they arrived at the Queen City of the WestWilliam took care of his ailingwife, Martha, who soon died, and James sought medical attention forhimself.

William Procter quickly established himself as a candle maker. JamesGamble apprenticed himself to a soap maker. The two might never havemet had they not married sisters, Olivia and Elizabeth Norris, whosefather convinced his new sons-in-law to become business partners. In1837, as a result of Alexander Norris' suggestion, a bold new enterprisewas born: Procter & Gamble.

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

1850 The Moon and Stars began to appear in the 1850s as the unofficialtrademark of Procter & Gamble. Wharf hands used the symbol todistinguish boxes of Star Candles. By the 1860s, the Moon and Starsappeared on all Company products and correspondence. Once a staple of the Company's product line, candles declined in popularity with theinvention of the electric light bulb. The Company discontinued candlemanufacturing in the 1920s.

1924 A market research department was created to study consumerpreferences and buying habitsone of the first such organizations inhistory.

1931 P&G's brand management system began to take shape in the late1920s. In 1931, Neil McElroy, the Company's Promotion DepartmentManager, created a marketing organization based on competing brands

managed by dedicated groups of people. The system provided morespecialized marketing strategies for each brand and Procter & Gamble'sbrand management system was born.

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

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

1990 Most of the laundry detergent brands were reformulated toincorporate P&G's compact technology. Introduced in Japan with theCheer and Ariel brands, the technology was expanded to 36 brands in 20different countries during the year.

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

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

2000 , Procter & Gamble Home Products introduced Tide DetergentPowder - the largest selling detergent in the world.

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

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

September 2001 , Procter & Gamble Home Products launched NewPantene Pro-V range of five shampoos in India which gave consumers thelook they want Smooth & Silky for straighter hair, Volume & Fullness forthicker hair, Balanced Clean for shinier hair, Lively Clean for livelier hairand Anti-Dandruff for dandruff-free hair.

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

November 2002 , Procter & Gamble Home Products Limited launchedHead & Shoulders Naturally Clean, a new variant in its Head & Shouldersrange of Shampoos especially for Tamil Nadu, Kerala, Andhra Pradesh,Karnataka and West Bengal. Its Smart ZPT combined with Natural Citrus(lemon) extracts removes 100% dandruff and rinses oil and stickinessfrom the scalp, giving light, loose, free flowing hair.

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June 2003 , Procter & Gamble Home Products Limited launched Pampers- worlds number one selling diaper brand with sales of US$ 6 billionannually. Pampers provides superior dryness for uninterrupted overnightsleep, with just one pampers diaper. In India, Pampers Fresh & Dry isavailable in a variety of three sizes 4s, 10s and 25s.

July 2003 , Procter & Gamble Home Products Limited launched Pantene

Long Black, the ultimate solution for achieving the Long and Black hairlook, and Head & Shoulders Silky Black - the only shampoo in India tooffer the dual benefits of 100% dandruff-free as well as silky black hair.

September 2003 , Procter & Gamble Home Products Limited announcedthat its superior quality Tide sachet is now available at Re. 1 per sachetand its Ariel sachet at Rs. 2 per sachet, thus making the worlds bestdetergents available at lower prices.

January 2004 , Procter & Gamble Home Products Limited announced the

launch of Rejoice Asias No. 1 shampoo, in India. Rejoices patentedMicro-Silicone conditioning technology gives twice as smooth, and easy tocomb hair versus ordinary shampoos, at affordable prices in 100 mlbottles and 7.5 ml sachets.

March 2004 , Procter & Gamble Home Products Limited reduced theprices of Ariel and Tide bags (large packs) by 20-50%, while maintainingthe superior quality. The superior quality one kg pack of Tide now cleansa familys one month laundry in just Rs.23/-, while a one kg pack of Arielcleans a familys one month laundry in just Rs.50/-.

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

October 2004 , Procter & Gamble Home Products Limited launched NewPantene Amino Pro-V Complex shampoos, which makes hair ten timesstronger.

November 2004 , Procter & Gamble Home Products Limited launchedNew Tide Bar. The New Tide Bar is unique as compared to the availabledetergent bars because of its three unique features: (i) It has greenspeckles called Whiteons, which release a unique whitening action onreacting with sunlight; (ii) Its technology also ensures that it lasts longer,does not dissolve easily and delivers a good balance between bar-hardness and ease of application on clothes and; (iii) It has a lemony & refreshing fragrance that lingers on clothes hours after wash

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P&GS PURPOSE

The company will provide branded products and services of superiorquality and value that improve the lives of the world's consumers. As aresult, consumers will reward us with leadership sales, profit, and value

creation, allowing our people, our shareholders, and the communities inwhich they live and work to prosper.

P&GS VALUES

P&G is its people and the values by which they live. The company

attract and recruit the finest people in the world. They build theirorganization from within, promoting and rewarding people without regardto any difference unrelated to performance. They act on the convictionthat the men and women of Procter & Gamble will always be their mostimportant asset.

LEADERSHIP

They are all leaders in their area of responsibility, with a deepcommitment to deliver leadership results.

They have a clear vision of where they are going. They focus our resources to achieve leadership objectives and

strategies. They develop the capability to deliver their strategies and eliminate

organizational barriers.

OWNERSHIP

They accept personal accountability to meet their business needs,improve their systems, and help others improve their effectiveness.

They all act like owners, treating the Company's assets as their ownand behaving with the Company's long-term success in mind.

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INTEGRITY

They always try to do the right thing. They are honest and straightforward with each other. They operate within the letter and spirit of the law.

They uphold the values and principles of P&G in every action anddecision. They are data-based and intellectually honest in advocating

proposals, including recognizing risks.

PASSION FOR WINNING

They are determined to be the best at doing what matters most. They have a healthy dissatisfaction with the status quo. They have a compelling desire to improve and to win in the

marketplace.

TRUST

They respect their P&G colleagues, customers, and consumers, andtreat them as they want to be treated.

They have confidence in each other's capabilities and intentions. They believe that people work best when there is a foundation of

trust.

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P&GS PRINCIPLES

They Show Respect for All Individuals

They believe that all individuals can and want to contribute to theirfullest potential.

They value differences. They inspire and enable people to achieve high expectations,

standards, and challenging goals. They are honest with people about their performance.

The Interests of the Company and the Individual AreInseparable

They believe that doing what is right for the business with integritywill lead to mutual success for both the Company and the individual.Their quest for mutual success ties us together.

They encourage stock ownership and ownership behavior.

They are Strategically Focused in their Work

They operate against clearly articulated and aligned objectives andstrategies.

They only do work and only ask for work that adds value to thebusiness.

They simplify, standardize, and streamline their current workwhenever possible.

They value Personal Mastery

They believe it is the responsibility of all individuals to continuallydevelop themselves and others.

They encourage and expect outstanding technical mastery andexecutional excellence.

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They Seek to Be the Best

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

Company. They benchmark our performance rigorously versus the very best

internally and externally. They learn from both their successes and their failures.

Innovation Is the Cornerstone of Our Success

They place great value on big, new consumer innovations. They challenge convention and reinvent the way they do business to

better win in the marketplace.

Mutual Interdependency Is a Way of Life

They work together with confidence and trust across business units,functions, categories, and geographies.

They take pride in results from reapplying others' ideas. They build superior relationships with all the parties who contribute

to fulfilling our Corporate Purpose, including their customers, suppliers,universities, and governments.

They are Externally Focused

They develop superior understanding of consumers and their needs. They create and deliver products, packaging, and concepts that

build winning brand equities.

They develop close, mutually productive relationships with theircustomers and our suppliers. They are good corporate citizens.

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PRODUCTS

HAIR SHAMPOOS

(1) Head & Shoulder

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

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

Head & Shoulders Smooth & Silky: Makes hair smoother and silkier Head & Shoulders Refreshing Menthol: Removes scalp itch and

provides cool sensation Head & Shoulders Clean and Balanced: Provides the right balance of

cleaning and conditioning Head & Shoulders Silky Black: Formula with Black Sesame and

Walnut Extract nourishes your hair and scalp from within to make blackhair look silky.

Head & Shoulders Naturally Clean: For cleaning up oil, dirt andgrime on the scalp. H&S Naturally Clean transforms unhealthy, stickyhair into healthy, dandruff free and naturally clean hair. Currently soldonly in South and East India.

Head & Shoulders Nourishing Aloe Vera (Launched By Preity Zinta)

for Dandruff-Free, Beautifully Growing Hair

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

(2) Pantene Pro-V

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

Amino Pro-V Complex range of shampoo comes in five variantssuited for individual needs: Pantene Smooth & Silky, Volume & Fullness,Long Black, Hair Fall Control, and Lively Clean; and is available at allgeneral and chemists stores at a price of Rs. 98 for a 200ml. bottle; Rs.51 for a 100ml. bottle and Rs. 3 for a 7.5ml sachet.

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

The New Pantene(R) is available at general and chemists storesacross India and continues to be priced at Rs. 98 for a 200ml. bottle, Rs.51 for a 100ml. bottle, and Rs. 3 for a 7.5ml sachet.

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(3) Rejoice

P&G announces the launch of Asias No. 1 shampoo Rejoice, inIndia. Rejoice with its patented Micro-Silicone conditioning technologygives twice as smooth, and easy to comb hair versus ordinary shampoos.

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

Rejoice has been launched by P&G to specifically meet the uniqueneeds of Indian consumers. Its patented Micro-Silicone conditioningtechnology gives twice as smooth, detangled and easy to comb hair thanordinary shampoos or the combination of home remedies such as henna,amla, reetha and shikakai. The shampoos unique high-tech suspensionsystem holds the surfactant and conditioner together, thus ensuring bothwet and dry conditioning. Wet conditioning makes it easy to comb hairwhen wet, while dry conditioning ensures that hair remains smooth evenafter it has dried up, thus making tangles a thing of the past.

P&G has launched Rejoice in three unique variants:

Rich: Specially formulated with higher conditioning to make hairextra smooth and superbly easy to comb. Suitable for those with dryhair.

Silky Clean: Specially formulated for hair which is oiled frequently.It provides gentle, effective cleaning of oil and dirt from hair and thenconditions the hair to make it silky smooth. Suitable for those who oilhair/ whose hair tends to get naturally oily or sticky.

Complete: Specially formulated as a 3-in-1 shampoo that fightsdandruff, and gives silky smooth hair that smells great all day long.Suitable for the entire family.

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

DETERGENTS

(1) Ariel

Superior cleaning in a choice of Two Fragrances Ariel Spring Clean& Ariel Fresh Clean Another Breakthrough Innovation from Ariel for theIndian Family

Procter & Gamble, the makers of leading international fragrancessuch as Hugo Boss, Lacoste, Old Spice and Valentino now make your wishcome true, with the launch of Ariel in a choice of two exciting fragrances Ariel Spring Clean with a floral fragrance, and Ariel Fresh Clean with arefreshing fragrance. The two unique fragrances of Ariel now offers Indianconsumers an unbeatable combination of superior cleaning and a choiceof fragrances with the launch of Ariel Spring Clean and Ariel Fresh Clean.

Ariel is the worlds leading detergent and epitomizes stain removal.Introduced in India in 1991, Ariel has continuously led other detergents inproduct innovation. It was the first to bring the compact detergent technology in India; the enzyme technology for superior and safe stain-removing power; the proprietary smart eyes technology which helpsdetect and remove stains better than any other detergent; and now forthe first time superior cleaning in a choice of fragrances. Ariel containssafe ingredients for normal fabrics and skin under recommended usageconditions for laundry, and meets the Companys stringent human andenvironmental safety standards.

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

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remains unchanged at Rs. 145 for 1.5kg; Rs. 99 for 1kg; Rs. 50 for500gm; Rs. 22 for 200gm and Rs. 2 for a 20gm sachet.

(3) Tide

Tide is the Worlds Oldest & Most Trusted Detergent brand and isthe Market Leader in 23 Countries around the world.

Launched in India in mid-2000, Tide provides OutstandingWhiteness on white clothes & excellent cleaning on coloured clothes aswell. This is possible, due to its anti-redisposition global technologywhich Tide employs. These Anti-redeposition Agents help keep soils fromre-settling on clothes after they have been removed during the washitself. Tides Fabric Whitening Agents deposit on fabrics during launderingto enhance brightness of light coloured fabrics. Tide improves the washingexperience through its pleasant "lemon" perfume that lingers on theclothes hours after the washing and leaves clothed bright white andprevents them from turning yellow. It does not bleach or remove colourfrom a garment.

Creative Advertising starring Shekhar Suman, White Stripe Campaign and the recent Bagbhan Commercial have help made Tide ahousehold name.

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

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SWOT ANALYSIS OF P&G

STRENGTHS

Subsidiary of global FMCG giant that was established in1837.Started Indian operations by acquiring Richardson Hindustan in1885

Wider portfolio in western markets to be launched in India soon.E.g. entering oral care segment by introducing crest skin caresegment by introducing Olay, Noxzema etc.

P&G has speeded up innovations in products by extensive researchfor new products by its R&D.

Provides affordable products despite heavy price cuts and pricewars with HLL. P&G slashed prices of Ariel & Tide by 50% andimproved market share to 10% form 6%

Aggressive small packs/sachets sales strategy as sachets constitutearound 65-70% of shampoo sales. More price cuts in sachets to earnhigher profits by higher sales volume.

Ariel was the first compact detergent launched in the country in1991. It introduced enzyme technology, smart eyes technology etc forfirst time in India.

Brand endorsement of Ariel by personalities like Shabana Azmi,Sharmila Tagore, Smriti Irani etc.

Healthy growth rate maintained in hair care segment despite pricewars. Market share increased to 20% from 16%.

Distribution agreements with Marico to help reach wider market forits products.

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WEAKNESSES

Delay in formulation of country specific strategy. Forfurther product launches in India in case of skin care and premium haircare segments.

Clutter intense competition form rivals HLL, Nirma etcand competition amongst the brands itself restricting volumes in HairCare and Laundry segments.

High input costs due to increase in price of Oil,chemicals, etc.

Some of the acquire brands did not do well e.g. Clairolin Hair Care segments as company has too many brands in eachsegments.

Consumers switching to other brands due to frequentprice cuts and price erosions of competitors products.

Due to price cuts by rivals. Companies market share inpremium end detergent market declined from 7.1% to 6% overall.

OPPURTUNITIES

Opportunities in rural area through rural distribution networks andafter making price affordable.

Organized retailing will give competitive advantage as they will havegreater say and display in shelf space of retailing giant.

Introducing new brand across globe and manufacturing units to beestablished in tax free zones.

Saving cost by outsourcing the engineering and fabrication worksand devoting time to core business.

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Exports in Asian countries which have huge population and marketpotential is tremendous.

THREATS

Heavy price war in detergent & Laundry business has resulted indecline in market share of Ariel.

Saturation of detergent market may lead to no further increase inmarket share and increase in sales

Present rivalries at lower end e.g. Nirma

Threats from look-alike products & cheap products.

Challenges from multiplexes and mobiles that hinder spending onFMCG goods.

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NIRMA

HISTORY

Nirma is one of the few names - which is instantly recognized as atrue Indian brand, which took on mighty multinationals and rewrote themarketing rules to win the heart of princess, i.e. the consumer. Nirma,the proverbial Rags to Riches saga of Dr. Karsanbhai Patel, is a classicexample of the success of Indian entrepreneurship in the face of stiff competition. Starting as a one-man operation in 1969, today, it has about14, 000 employee-base and annual turnover is above Rs.2500 crores.

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

middle class pie. In such a widespread, diverse marketplace, Nirma aptlyconcentrated all its efforts towards creating and building a strongconsumer preference towards its value-for-money products.

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

The performance of Nirma during the decade of 1980s has beenlabeled as Marketing Miracle of an era. During this period, the brandsurged well ahead its nearest rival Surf, which was well-establisheddetergent product by Hindustan Lever. It was a severing battering forMNC as it recorded a sharp drop in its market share. Nirma literallycaptured the market share by offering value-based marketing mix of fourPs, i.e. a perfect match of product, price, place and promotion.

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

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second largest toilet soap brand in India with market share of 38% and20% respectively.

It has been persistent effort of Nirma to make consumer productsavailable to masses at an affordable price. Hence, it takes utmost care toprovide finest products at the most affordable prices. To leverage thiseffort, Nirma has gone for massive backward integration along with

expansion and modernization of the manufacturing facilities.The focal objective behind modernization plan is of up gradation withresource-savvy technology to optimize capabilities. Nirmas six productionfacilities, located at different places, are well equipped with state-of-arttechnologies. To ensure regular supply of major raw materials, Nirma hadopted for backward integration strategies. These strategic moves allowedNirma to manage effective and efficient supply-chain.

Nirma has always been practiced value-for-money plank. Nirmaplans to extend the same philosophy in categories as commodity food

products, personal care products and packaged food. Distinct marketvision and robust infrastructure allowed Nirma to have cost leadership.Apart from this, lean distribution network, umbrella branding and lowprofile media promotions allowed it to offer quality products, at affordableprices.

In present scenario, an inspiring 59-year-old persona, Dr.Karsanbhai K. Patel, leads Nirma, playing role of key strategic decision-maker, whereas his next generation has already skilled managementcapabilities. Shri Rakesh K Patel a qualified management graduate, isspearheading the procurement, production and logistic functions, whereasShri Hiren K Patel a qualified Chemical engineer and managementgraduate, heads the marketing and finance functions of the organization.Shri Kalpesh Patel, Executive Director, leads the professionalorganizational structure.

Shri Karsanbhai has been awarded an Honorary Doctorate byFlorida Atlantic University, Florida, USA in the year 2001 in recognition of his exceptional accomplishments as a philanthropist and businessman.

This world has also recognized his ability, acumen and wisdom andin recognition of the services rendered by him in his various capacities.Dr. Karsanbhai Patel has also served as a Chairman for two terms to theGovernment of Indias Development Council for soaps and detergents, asa Member of Bureau of Indian Standards Committee for Soaps andDetergent Industries and President of Gujarat Detergent ManufacturersAssociation.

MILESTONES OF SUCCESSS

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

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

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

HERITAGE

In scorching heat of 1969, a son of small-time farmer was trying tomix Soda Ash and few other intermediaries, to make a detergent produce.He was a qualified Science graduate and was working as junior chemist inGovernment laboratory. As a moonlighting activity, he was makingdetergents in the 100 Sq. Ft. back yard of his home, using bare handsand bucket. Once the mixture is ready, he used to pack them in polythenebag and was selling door-to-door Gradually, the product became wellaccepted in the consumer community, and the rest is known to one andall This is a success saga of a first generation entrepreneur, on his wayto create history in the Indian marketplace - that was Dr. KarsanbhaiPatel.

In a short span, he captured the domestic market, with a qualityproduct. He swiftly crafted low-to-medium consumer pockets a wholenew consumer segment for detergent category. He took on mighty multi-nationals and rewrote the marketing rules. In true sense, he spearheadedthe market revolution by offering innovative, value-for-money products,and changed the cloth-washing habit of Indian housewives - therevolution called Nirma.

From initial days, Nirma believed in value-for-money equation, increating and maintaining long-lasting relationships. It has alwaysremained committed to offer better products, at better value, for betterliving

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VISION, MISSION & PHILOSOPHY

Nirma is a customer-focused company committed to consistentlyoffer better quality products and services that maximize value to thecustomer.

This customer-centric philosophy has been well emphasized atNirma through:

Continuously exploring & developing new products & processes.Laying emphasis on cost effectiveness.Maintaining effective Quality Management System.Complying with safety, environment and social obligations.Imparting training to all involved on a continuous basis.Teamwork and active participation all around.Demonstrating belongingness and exemplary behaviour towards

organization, its goals and objectives.

Nirma is a phenomenon and synonymous with Value for Money. Thebrand transcends the specific dynamic of any particular product category,which is best captured in its above mission statement - a statement of sustained innovation, an unceasing effort to deliver better value toconsumers, through better product quality.

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PRODUCTS

DETERGENTS

(1) Nirma Washing Powder

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

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(2) Super Nirma Washing Powder

Exploding the myth that better quality always demands higherprice, Nirma introduced a spray-dried blue coloured washing powder inthe premium segment, in 1996. Available in 25g, 500g and 1000g packs,this product out-classed its competitor brands. Though, priced almost

40 % lesser, thus providing a very attractive value-for-moneyproposition. This brand, within a short span of two years, had corneredsubstantial market share in the premium detergent segment andcontinues to perform well.

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SOAPS

(1) Nirma Lime Fresh Soap

This product had created a sensational marketing history in the

Indian Toilet soaps market, when it was launched in 1997. Seventeenmillion packs of Nirma Lime Fresh soap were sold in the very first monthof its soft launch. Packed in a poly coated 75 gm carton, which is printedon the worlds best Cerruti 8-colour printing machine, this soap isavailable in green colour. With a lime aroma that tingles in ones sensorybuds for a long time, this soap contains 80% TFM. The product launch of Nirma Lime Fresh had been extremely successful, being ranked as theSeventh Most Successful Brand Launch for the year 1998, as ranked bythe Business Standard Marketing Derby, 1998. (as featured in TheStrategist Quarterly, July-September 1998).

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(2) Nirma Beauty Soap

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

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(3) Nima Rose

The remarkable and phenomenal market response received by NimaRose soap within just two months of its launch once again proved themerits of Nirmas commitment towards its consumers. Nima Rose soaphas got an exceptionally soft rose fragrance which remains around bodyfor a long time even after bath. The high TFM content of this productallows a consumer to have pleasant bath. This brand had carved a nichein its segment by achieving leadership position just within two months of its launch. It is available in 100g and 150g pack sizes.

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(4) Nima Sandal

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

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SWOT ANALYSIS OF NIRMA

STRENGTHS

Strong Brand equity. Nirma is a Rs.17 billion umbrella brandoffering consumers a broad portfolio of products at multiple pricepoints in the Detergents, Soaps & Personal Care market.

Produces a range of industrial chemical products whichprimarily serve as raw material or intermediates for Soaps & Detergents business.

Market leadership in detergents market and fabric washindustry and second largest player in Toilet soaps industry.

Wide distribution network.

Benefit of the brand name Nirma in every product.

It has a higher production strength and capacity plant.

WEAKNESSES

High interest burden.

Less presence in premium segment.

Lack global tie ups and thus lacking in exportmarkets.

Common name that is (Nirma) in its products sonot able to keep optimum brand name.

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OPPURTUNITIES

Exports.

Acquisitions for strengthening itsdistribution tie ups.

Entry into other categories likeshampoos, toothpastes and fabric whiteners.

THREATS

MNCs coming to India particularly in Toilet andSoap industry.

Emergence of small but strong regional players.

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CHAPTER - 2

RESEARCH

METHODOLOGY

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OBJECTIVE OF SUTDY

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

To know which brand of Detergent, shampoos & Bathing soap areused more by the people among the manufacturers like HLL, P&G andNirma.

To know whether they frequently change the brand, they use ornot.

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

To know which parameters from the following are given importancewhile purchasing the products under study?

(a) Price (b) Quality (c) Brand Name(d) Smell (e) scheme

To know the opinions of the people that whether MNC products are

of better quality or not.

To know whether the respondent think that the MNC products areoverpriced or not.

To know the opinion of the respondent regarding, CanAdvertisement affect sale?

To know what people personally believe regarding the existence of

product like Fairness soaps and Shampoos to control hair fall.

To know from which place people generally buy the products understudy.

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SOURCES OF DATA

(1) Secondary Data

Sources form where secondary data had been collected are,

Websites of the CompanyMagazinesNewspapersOther WebsitesAnnual Reports of companyGeneral idea from the managers of the Malls and Owners of the

Grocery shops regarding the sales of brands under study.(Details are mentioned in annexure)

(2) Primary Data

Primary data was collected from the people of differentparts of Ahmedabad by interviewing them and filling the questionnaire.

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QUESTIONNAIRE

The questionnaire was structured in form and undisguised.

The questions were framed in close ended form so as to getsimilar answers and analysis becomes easy.

It was seen that the language of the questions framed was simpleand easy so as to avoid confusions and to attain more accuracy incollecting data.

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

It was seen that the general question were asked first and personalquestions were asked last.

The number of questions in the questionnaire was kept less andmost of them contain supplementary options.

SAMPLING METHOD

We adopted simple random sampling method to select samplefor the survey.

SAMPLE SIZE

Among the different methods of selecting sample size likeAdhoc and Statistical, we have adopted the Adhoc method and decidedthe sample size to be 300 for survey.

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LIMITATIONS

The interviewers were not trained which would have lead to biasresults.

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

The analysis was done manually and not by using technical softwareas it is more costly

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

The secondary data regarding market share was not available.

There were certain respondents whose response was not good.

There was no supervision done on the interviewers.

No statistical techniques were used.

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CHAPTER 3

ANALYSIS

AND

FINDINGS

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(Ref. Annex 1)

Based on the survey done it was observed that the brandname NIRMA was the brand that came to peoples mind first that covers31% out of the total. i.e. 93 respondents out of 300 were influenced by thename.

DETERGENT THAT COMES TO THE MIND FIRST

28, 9%

61, 20%

93, 31%

43, 14%

23, 8%

20, 7%

32, 11% WHEEL

HENKO

SURF

NIRMA

TIDE

ARIEL

RIN

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(Ref. Annex 2)

Based on the question asked as to which parameter are importantfor them while they purchase detergents. And on survey we found thatquality was given the highest importance while purchasing detergentsamong the given parameters. i.e. 221 out of 300 respondents.

29

221

40

100

50

100

150

200

250

NUMBER

PRICE QUALITY BRANDNAME

SCHEME

BRAND NAME

PARAMETERS RANKED 1ST FOR DETERGENT

PURCHASE

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SHAMPOO THAT COMES TO MIND FIRST

145%

134%

155%

165%

93%

207%

3211%

227%

145%

11538%

3010%

HEAD & SHOULDERSUNSILK

CLINIC

REJOICE

PANTENE

NYLE

GARNIER

CHIK

AYUSH

LUX

VATICA

(Ref. Annex 3)

Out of the total brands available in case of Shampoos the brandname Sunsilk was the first brand that came to peoples mind i.e. 38%that results to 115 out of 300 respondents.

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19

235

33

8 5

0

50

100

150

200

250

NUMBER

PRICE QUALITY BRAND NAME SCHEME SMELL

BRAND NAME

PARAMETERS RANKED 1ST FOR SHAMPOOPURCHASE

(Ref. Annex 5)

Out of the different parameters given to the respondents that isPrice, Quality, Brand Name, Scheme and Smell, Quality was chosen thefirst parameter by 235 people out of 300 respondents.

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BATHING SOAP THAT COMES TO THE MIND FIRST

16, 5% 25, 8%

32, 11%

15, 5%

110, 37%

7, 2%

12, 4%

8, 3%

10, 3%

7, 2%

5, 2%

6, 2%

38, 13%

9, 3%

DOVEPEARSLIRILHAMAMNIRMALUXCINTHOLSANTOORLIFEBOUYDETTOLAYUSH

NIVEAALEOVERAMARGO

(Ref. Annex 6)

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

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18

225

35

616

0

50

100

150

200

250

NUMBER

PRICE QUALITY BRANDNAME

SCHEME SMELL

BRAND NAME

PARAMETERS RANKED 1ST FOR BATHINGSOAP PURCHASE

(Ref. Annex 8)

Parameter Quality was given the most importance amongst the all. Itcame to about 225 respondents out of the total 300 who sees the quality firstwhile purchasing.

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INCOME GROUP

50001 TO100000

80

27%

100001TO

20000010936%

ABOVE200000

8227%

LESSTHAN

5000029

10%

(Ref. Annex 9)

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

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BRAND'S PREFERED (DETERGENT)

39 38

61

44

78

2515

0102030405060708090

R I N N I R

M A

W H E E

L T I D

E S U

R F A R

I E L

O T H E

R

CATEGORY

N U M B E

(Ref. Annex 10)

Amongst the different brands preferred in case of Detergents Surf brand

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

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(Ref. Annex 11)

LESS THAN 50000

OTHERS2

7%

ARIEL2

7%

SURF6

21%

TIDE4

14%

WHEEL9

31%

NIRMA3

10%

RIN3

10%

Income group of less than 50000 preferred Wheel as the most preferredbrand of detergent for their daily use. While others accounted to less than25%.

50001 TO 100000

OTHERS9

11%

ARIEL7

9%

SURF18

22%

TIDE11

14%WHEEL

1215%

NIRMA12

15%

RIN11

14%

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

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100001 TO 200000

OTHERS1

1%

ARIEL6

6%

SURF26

24%TIDE

1615%

WHEEL27

24%

NIRMA14

13%

RIN19

17%

Income group of 100001 to 200000 preferred Wheel and Surf as themost preferred brand of detergent for their daily use. While others accountedto less than 20%.

ABOVE 200000

OTHERS3

4%

ARIEL10

12%

SURF28

34%

TIDE13

16%

WHEEL13

16%

NIRMA9

11% RIN6

7%

Income group of above 20000 preferred Surf as the most preferred

brand of detergent for their daily use. While others accounted to less than20%.

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MNC PRODUCTS ARE OF BETTER QUALITY

184

86

30

020

406080

100

120140160

180200

YES NO CAN'T SAY

CATEGORY

N U M B E R

(Ref. Annex 12)

Based on the question asked as to whether MNC products are of BetterQuality, most people preferred to answer as YES in comparison to notagreeing.

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(Ref. Annex 13)

LESS THAN 50000

CAN'T SAY8

27%

NO8

27%

YES14

46%

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

50001 TO 100000

CAN'T SAY12

15%

NO20

25%YES48

60%

500001 to 100000 income group personally believed that MNC products

are of better Quality.

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100001 TO 200000

CAN'T SAY8

7%

NO34

31%

YES67

62%

100001 to 200000 income group personally believed that MNC productsare of better Quality.

ABOVE 200000

CAN'T SAY3

3%

NO2426%

YES66

71%

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

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MNC PRODUCTS ARE OVER PRICED

203

69

28

0

50

100

150

200

250

YES NO CAN'T SAY

CATEGORY

N U M B E R

(Ref. Annex 14)

Based on the question asked as to whether MNC products are of BetterQuality, most people preferred to answer as YES in comparison to notagreeing.

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(Ref. Annex 15)

LESS THAN 50000

CAN'T SAY3

10%

NO4

14%

YES22

76%

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

50001 TO 100000

CAN'T SAY6

8%

NO18

23%

YES56

69%


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100001 TO 200000

CAN'T SAY9

8%

NO25

23%

YES75

69%


ABOVE 200000

CAN'T SAY10

11%

NO27

31%

YES50

58%

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

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AGE

ABOVE606

2%

21 TO 3084

28%

31 TO 45

11036%

46 TO 60

7425%

LESSTHAN 20

269%

(Ref. Annex 16)

Out of the total 300 respondents 9% fell into the age group less than 20,28% fell into 21 to 30, 36% fell into 31 to 45 and 25% fell into 46 to 60 and2% above 60.

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(Ref. Annex 17)

Amongst the different brands preferred in case of Shampoos Sunsilkbrand was the first amongst the all that resulted into 113 respondents outof the 300 people.

BRAND'S PREFERED Shampoos)

113

14

40

15

32 3749

0

20

40

60

80

100

120

Sunsilk Rejoice Clinic Ayush Head &Shoulder

Pantene Others

BRANDS

N U M B E R S

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(Ref. Annex 18)

Among the different age group, the age between 18 to 30 preferssunsilk as the most used shampoo that accounted for 32% i.e. 35

respondents out of the 300.

Others

1816%

Pantene13

12%

Head & Shoulder

1312% Ayush5

5%

Clinic19

17%

Rejoice7

6%

Sunsilk35

32%

83

AGE 18 TO 30


84/105

Among the different age group, the age between 31 to 45 preferssunsilk as the most used shampoo that accounted for 41% i.e. 46respondents out of the 300.

AGE 31 TO 45

Others

1816%

Pantene14

13%

Head & Shoulder

1413% Ayush4

4%

Clinic11

10%

Rejoice3

3%

Sunsilk46

41%

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

Others11

12%

Pantene9

10%

Head & Shoulder5

5%

Ayush5

5%

Clinic9

10%

Rejoice2022%

Sunsilk3236%

AGE 46 TO 60

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

Others232%

Pantene117%

Head & Shoulder0

0%

Ayush117%

Clinic117%

Rejoice1

17 %Sunsilk00%

86

AGE ABOVE 60


87/105

BRAND'S PREFERED (Bathing Soap

17

82

7

50 50

4

17

1

1220

40

0

10

20

30

40

50

60

70

80

90

N i r m a L u

x

B r e e z

e P e

a r s D o v e

R e x o

n a

H a m a

m A y

u s h

L i f e b

o u y

L i r i l

O t h e

r s

BRANDS

N U M B E R S

(Ref. Annex 19)

Amongst the different brands preferred in case of Bathing SoapsLux brand was the first amongst the all that resulted into 82 respondentsout of the 300 people.

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(Ref. Annex 21)

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

Hamam7

7%

Rexona2

2%

Dove22

21%

Pears

1817%

Breeze1

1%

Lux24

22%

Nirma4

4%

Others13

12%

Ayush1

1%

Lifebuoy5

5%Liril

8

8%

88

AGE 18 TO 30


89/105

Among the different age group, the age between 31 to 46 prefers Lux asthe most used Bathing Soap that accounted for 34% i.e. 37 respondentsout of the 300.

AGE 31 TO 46

Hamam4

4%

Rexona0

0%

Dove12

11%

Pears18

17%

Breeze4

4%

Lux37

34%

Nirma6

6%

Others13

12%

Ayush0

0%

Lifebuoy5

5%

Liril7

7%

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

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

Hamam5

7%

Rexona1

1%Dove7

9%Pears

1419%

Breeze2

3%

Lux21

28%

Nirma7

9%

Others10

14%

Ayush0

0%

Lifebuoy2

3%

Liril57%

90

AGE 46 TO 60


91/105

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

AGE ABOVE 60

Hamam1

17%

Rexona1

17%

Dove3

49%

Pears117%

Breeze0

0%

Lux0

0%

Nirma0

0%

Others0

0%

Ayush0

0%

Lifebuoy0

0%

Liril0

0%

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EDUCATIONGraduate

17559%

PostGraduate

4314%

Professional,

33, 11%

Schooling49, 16%

(Ref. Annex 23)

Among the survey done on the bases of FMCG products most of theresponses that came were from the Graduates that covered about 59% that is175 respondents out of the total 300

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Exsistence of product like fairnesssoap and shampoo to control hair fall

105

177

18

020

406080

100

120140160180

200

YES NO CAN'T SAY

CATEGORY

N U M B E R

(Ref. Annex 24)

Based on the question asked as to whether there is an existence of product like fairness soap and shampoo to control hair fall, most peoplepreferred to answer as NO compared to answer YES.

93


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(Ref. Annex 25)

On questioning as to whether there is existence of fairness soap andshampoo that control the hair fall, most of the people who fell in the group of schooling disagreed, that is 29 respondents out of 300 which is 59%.

On questioning as to whether there is existenc

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