A RESEARCH REPORT On “A study on marketing strategies of different Products of HUL Ltd.” MASTER OF BUSINESS ADMINISTRATION SUBMITTED TO U.P. TECHNICAL UNIVERSITY LUCKNOW (2008- 2010) Under the Guidance of: Submitted By Mr. Prashant Sharma Ravindra Kumar (Project , Guide) MBA IVth SEM Roll No. 0807470066 1
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ARESEARCH REPORT
On
“A study on marketing strategies of different Products of HUL Ltd.”
MASTER OF BUSINESS ADMINISTRATION
SUBMITTED TO U.P. TECHNICAL UNIVERSITY LUCKNOW
(2008- 2010)
Under the Guidance of: Submitted By Mr. Prashant Sharma Ravindra Kumar (Project , Guide) MBA IVth SEM
Roll No. 0807470066
DEWAN INSTITUTE OF MANAGEMENT STUDIES
PARTAPUR, BY PASS ROAD,MEERUT
1
DECLARATION
I Ravindra Kumar Student of MBA IV SEM hereby declare
that this research report is an original work done by me
independently and or any part of this work has not been
published for the award of any other Degree or Diploma.
Project I herby that the report” titled “A study on
marketing strategies of different Products of HUL
Ltd is the requirement of the M.B.A.,DIMS, Meerut is my
own efforts information furnished in this research report, is
true to the best of my knowledge.
RAVINDRA KUMAR M.B.A. VI Sem Roll No. -0807470066
2
ACKNOWLEDGEMENT
In the process of completing this project Marketing Strategy of HUL. I
have received cooperation from many quarters.
I express my sincere gratitude and indebtness to Mr. Prashant
Sharma, Faculty of MBA , DIMS, Meerut. for giving me an
opportunity to enhance my skill in the field of my project. I am thankful
for his guidance, patience and consummate support. He came to our help
when it counted and I extend my heartiest thanks to him form
enlightening my path. Without his sincere advice this project has been
impossible.
Moreover, I would also like to acknowledge my profound sense of
gratitude and indebtness for Dr. Gaurav kaushik (H.O.D. MBA Deptt.)
for his cooperation, guidance, support and precious suggestions that
motivated me to complete this project.
I would also like to thank Dr.J.C.Panth (Director ) Dewan
Institute Of Management Studies Meerut, for his gem guidance.
I also feel greatful and elated in expressing my indebtedness to all
those who have directly or indirectly helped me in accomplishing this
research work.
With Regards,
Ravindra kumarMaster of Business Administration
(2008-10)
3
Contents
1. Introduction……………………………….. 4
2. Objective…………………………………....6
3. Methodology………………………………..8
4. HUL- Brief History…………………………10
5. HUL- Advertising Strategy…………………12
6. Personal Products …………………………30
7. Food & Beverages……………..…………. 44
8. Financial News…………………………….56
9. Press Releases……………………………..60
10. SWOT Analysis……………………………70
11. Limitation…………………………………..73
12. Suggestion & Recommendation……………76
13. Conclusion………………………………….79
14. Bibliography………………………………..82
4
INTRODUCTION
5
INTRODUCTION
The Company being selected for study under this project report is Hindustan Unilever
Ltd; The number one FMCG in India. It can be said beyond any doubt that HUL is an
undisputed leader in FMCG products in urban as well as rural area. HUL caters to 850
million people in India which becomes 85% approx. of the total population. Hence the
study of HUL can give us a wide knowledge in the fields like successful
implementations of marketing strategy in urban and rural India cutting across so many
7 cultural, social, regional, religious, linguistic barriers.
Hindustan unilever Limited (HUL) is India's largest fast moving consumer goods
company. It is a leading player in home and personal care products, foods and
beverages, and speciality chemicals.
What differentiates HUL?
The product portfolio with its wide range of products sets HUL apart! It has achieved
market leadership in soaps and detergents (Surf) as well as hair and skin care products
(Sun Silk, Dove, Hamam). It is the second largest manufacturer of dental care
products (Close-up, Pepsodent). HUL is also market leader in tea (Taj), processed
coffee (Bru), ice cream (Kwality-Walls), tomato-based products (Kissan), jams and
squashes (Kissan), and branded staples (Kissan Annapurna).
The leading business magazine, Forbes Global, has placed Hindustan unilever at the
top among the best consumer (household) products companies worldwide for the
current year.
With a plethora of brands, Communication becomes imperative.
6
Every company has to communicate the presence of its products to capture a large
market share. How does a company do that? There are many tools that a marketer can
use: advertising, hoardings, radio, television and internet ads! What’s missing is the
freebie! Is sales promotion only made up of ‘atta free with soap’?
\
Objective
7
OBJECTIVE
To have an overall knowledge of how marketing of products with regard to
FMCG sector takes places with reference to HUL.
To map the market share of HUL in he Indian FMCG market.
To study the different products offered by HUL.
To study the marketing strategies and public relations of HUL.
8
METHODOLOGY
9
METHODOLOGY
The information obtained for the study is from secondary data sources. Secondary
data comprises of information obtained from annual reports, journals, brochures of
different FMCG company’s. It also includes organizational manuals and other
important documents maintained and published by various FMCG companies.
It also includes information collected from websites, business magazines, business
newspapers etc. Moreover it also contained information’s collected from the various
pamphlets published by different FMCG companies.
10
BRIEF HISTORY
11
HUL - BRIEF HISTORY
The company was incorporated on 17th October, 1933 under the name of Lever
Brothers (India) Pvt. Ltd. (LBIL). It set up its manufacturing units in Bombay and
Calcutta an associated company viz., Hindustan Vanaspati Mfg. Co. Pvt. Ltd. (HVM),
was earlier incorporated on 27th November 1931 which set up a vanaspati factory in
Bombay. Both LBILK and HVM were wholly owned subsidiaries of Unilever Ltd.,
London, U.K. HVM later acquired three more vanaspati factories at Shamnagar (West
Bengal), Tirchirapalli (Tamil Nadu) and Ghaziabad (U.P) In order to market the toilet
preparations manufactured by LBIL or imported from Unilever companies, a
marketing company under the name United Traders Pvt. Ltd. (UTL) was incorporated
on 11th may, 1935 as a wholly owned subsidiary of LBIL. In 1944, the management
of LBIL and HVM was integrated. In November 1956, HVM and two small
associated companies viz. William Gossage & Sons (India) Pvt. Ltd and Joseph
Crossfield & Sons (India) Pvt. Ltd., which were wholly owned subsidiaries of
Unilever Ltd., were amalgamated with LBIL and the name was changed to Hindustan
Unilever Ltd. From 23rd October, 1956 activities of UTL were taken over by its
holding Company LBIL. With the amalgamation of business under one company,
Indian capital was introduced in this integrated business in 1956. HUL has been
growing very rapidly, especially in 1996 the growth was 88.6% HUL became the
second private company in India after Reliance Industries to cross the Rs 10000 crore
mark in 1998. At present it’s valued at Rs. 11764.31 crore.1 Its rapid growth has given
HUL place in the top 5companies regularly in annual BT-500 survey. This huge
success has come due to:-
Merger with Ponds India Limited
Launch of 40 new products
Doubling of rural distribution network from 50,000 to one lakh villages
12
ADVERTISING
STRATEGY
13
HUL : ADVERTISING STRATEGY
BUILDING CORPORATE IMAGE
Corporate communications and public relations for building image can truly be
looked upon in the context of global business and marketing as a subject about which
many professionals hold firm views, but know surprisingly little about. Some see it as
a menace, as an expensive flag waving exercise which their company can easily do
without. Others regard it as a myth, arguing that publicity by of virtue its obvious
nature, cannot hope to change perceived images in people’s minds. At the other
extreme are those who view corporate communications (particularly advertising as a
magic formula and an instant panacea for every corporate ill. In reality it is none of
these things. it is in fact, a management tool to influence the outside world-the target
group. So, the real significance of building corporate image lies in preparing and
consolidating a sound global consumer base.
Every company wants to have a favorable image in the global market. In case of
HUL also, image-building plays the most important part in determining its marketing
strategy. Building corporate image is concerned with building confidence and
credibility by helping your target group understand you better. Familiarity in this case
normally improves acceptability of who you are and what you are doing. Ignorance,
on the other hand, can lead to mistrust, or even contempt in some situations.
Corporate image is built through more than one strategic means, and often a
combination of activities. For instance-
1. Advertising —corporate and even product
2. Public Relations—external and internal
3. Media Relations —especially the Press
4. Customer and Supplier Relations
5. Community Relations — good corporate citizenship
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As India transits from a shod age-driven economy to a one propelled by competition
the reputation and image of a company like HUL will make difference between
whether it rules the market or merely rues it. Corporate image is what enables HUL
to hold its own against rivals like IPCL And Haldia
Good corporate image can be built if you treat it like one of the Ps’ of marketing—
the fifth ‘P’ stands for Performance’ —professional corporate performance, doing it
the right way the first time. It’s in this regard that creativity in PR comes to have a
lion’s share in the entire process of corporate image building.
Creativity in PR means more than just pretty pictures and good copy. It is building
image with activities, which generate all-round impact and visibility for the company.
‘What’ and ‘How’ is the task here. Creative corporate advertising, is one route.
With respect to positioning similarly, the image communication and image building
activity must to able to find a right niche in the minds of the target group. The ‘quality
of the message, and activity, is vital for this.
Companies which benefit most from corporate image are those who take a long-term
view and commitment towards communication and the image of their organisation
through it. HUL can be presented as a striking instance of it.
Image and Identity
There may be nothing new in saying that the corporate image is in the eye and the
mind of the receiver. Yet it is worth saying again and again. An organisation
transmits, on a sustained basis, messages to publics. It is the reception of the message,
which goes to create the intended image. In other words, corporate communication is
the process that translates an identity into an image. Again, in brief, corporate image
primarily refers to the image that a company has acquired with the public whereas
corporate identity refers to the image a company strives to achieve, in order to build to
build a reputation with its publics.
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In this context, decidedly, every company like HUL needs a mission. The mission is,
in fact, a framework for business and all its activities, the value that drive the
company to achieve the corporate goals. No less important is the belief the company
has in itself. The mission is the glue that holds the company together. Here, the PR
and its communication strategies come into distinct focus. If the mission and the
objectives of the organisation have to succeed, the corporate body must communicate
short-term goals, long-range objectives and even the total mission of the organisation.
Inadequate communications result in an ambiguous corporate image within as well as
outside and lead to breakdown in the co-ordination of all contributing elements in an
organisation.
Dare To Think Beyond Advertising….
In present situation to address the "The soprano problem", advertisers resort to
shadow advertisement where the products become endemic to the setting of the show.
Where the products are shown being consumed or brand name is exhibited in the
background.
In India, the first shadow advertisement was used in movie "Bobby" where
motorcycle "Rajdoot" was advertised. Recently, there was shadow advertisement of
Coca-Cola in Hindi blockbuster "Kaho Na pyar hai". But the problem with shadow
advertisement is that positioning message of the product can't be conveyed to
consumers. Hence, the concept of shadow advertisement can be extended further so
that the theme of the advertising would become endemic to entertaining show. This
would be no more exclusive advertising. Rather, advertising will be a part of the
entertainment. But this has to be done in a delicate manner so that the information
about the product is passed on to the viewers without disturbing the entertaining
element of the show. If this succeeds, that would be a great break-through for
advertisement. Even this should not be called advertising anymore, as that has become
an irritating word in the mind of the audience. Even though advertainment seems
quite close to it, but it would be more evolved. Since in advertainment we try to
advertise and entertainment comes with it. But in the recommended solution Hul
wants to entertain the audience only and advertisement is an integral part of the show.
16
The major question would be, whether the audience would be able to comprehend the
hidden positioning message? Here are few examples on how to make the positioning
message integral part of the show. Hul have programmes like "Antakshari" in which
participants take part in groups. The groups can be named after some brands and the
participants would be projected as such that they would be personification of brands.
Suppose one group is named Lux, the participants are expected to be beautiful women
who stand for Lux. So this can be done for many programmes, which has format like
this. Suppose HUL produced a soap opera and the dialogue of the characters at some
point would be focussed on the products of HUL. Of course the context has to be right
and should be very much along the script not that it would destroy the element of
entertainment. Hence the major challenge would lie before scriptwriter and director.
Even a particular character of an opera becomes very popular as the opera becomes
very popular. Hence building such character, which would personify the brand and
both the character as well as the brand would grow in due course of time. However
even if time constraint is removed, course content constraint comes in. But the scope
of story telling is far greater. Attention grabbing will be replaced with attract attention
and no zipping/zapping problem. Audience will be more receptive and comprehension
of course would be dependent upon how it is executed. Practicability of the idea
would be tested when it will be implemented. Hence unless it is tried and tested it can
be concluded that whether it will click or not. Let's take the example of Coca-Cola,
the scriptwriter would be creating situation in each episode of a family soap where
there would be opportunity to celebrate and drink coke! To give another example, a
multi utility vehicle with safe driving positioning plank could have exploited the plot
of the recent movie "Road".
If this concept clicks, there would be nothing like it for advertisers. If it happens, in
future big advertisers like HUL would be diversifying to entertainment business! Of
course the ad budget of HUL is far bigger than the total budget of many entertainment
houses.
Irrespective of whatever positive points or negative points it has, this concept can be
tried for programmes aired in pay channels simply because there is no other
17
alternative to advertise during the programme. Besides it is expected to solve the other
problems those are discussed above. Advertisement would be no more the
troublemaker and irritating. Hence catching attention would be much easier. Only
testing of this idea could help us to conclude whether to roll out from the concept
from programmes of pay channels to programmes of free channels.
Advertising
“DOING BUSINESS WITHOUT ADVERTISING IS LIKE WINKING AT A
GIRL IN THE DARK; YOU KNOW WHAT YOU ARE DOING, BUT NOBODY
ARE DOES”
According to the American Marketing Association, Chicago adverting is “any paid
form of non personal presentation of ideas, goods and services by an identified
spoor”.
Advertising is a form of persuasive communication with the public.
The communication is usually one-sided from the Advertiser to the public
The object Advertising are :-
(1) Inform customers of the goods and services.
(2) Brings out the product use P’s
(3) Calls for or invites people to buy the product
(4) Mass communication
(5) Attract attention
(6) Lousing interest
(7) Building desire
(8) Obtaining action.
ADVERTISING PROCESS
The Frozen Products Division of HUL follows the adversing procedures laid down
by the company. The advertising agency also adheres to the company norms. A clear
sequence of activities is followed. This has been outlined below:
1. Usage and Attitude Study – Before a new product or advertising idea is
involved, a complete quantitative research study is carried out in order to
18
fully understand the needs, wants, preferences, purchases and consumption
habits of the target segment. The results of the study typically point out any
opportunities that can be exploited in terms of unsatisfied consumer needs.
On the basis of the above results, a new product or advertising concept is
evolved.
2. Concept Testing –Once the new concept has been thought of, it goes into
qualitative research. This qualitative research primarily focuses on testing the
acceptance of the concept by the target segment as well as the evolving of an
appropriate positioning plank. The positioning could be attribute, cost or
benefit based. Based on consumer feedback, an appropriate positioning
platform is determined.
3. Agency Brief –Once the concept testing is successfully complete, the Brand
Manager prepares a brand positioning statement. This is a description of the
brand and includes the product description, likely brand name, category,
name, variants (if any) and key brand benefits (sensory, functional and
emotional). An agency brief is then prepared for the Agency, which includes
the BPS as well as answers to the following questions:
- Why do we want new advertising?
- Whom are we talking to?
- What is the benefit to be perceived by the consumer?
4. Animating Testing: The storyboard is developed by the agency. After this has
been approved by the client, the animatics go into testing. These are
advertisements made from frame-by-frame shots of the storyboard with
appropriate music/dialogue/voice over. This is more economical when
compared to shooting the actual advertisement. The animatics are shown to
the sample audience for feedback and frame-by-frame analysis. The name,
product design, ambience, music and overall purchase intention after viewing
19
the advertisement are measured. Brand personification may be included. If
the results are positive, the advertising concept is frozen.
5. Media Brief – This is given to the media planner and is similar to the agency
brief. However, it includes media vehicles desired required awareness,
frequency (number of exposures) and reach (% target segment who should
view it).
6. Post Launch Dipstick –After the advertisement is released, a post-launch
study may be conducted in order to gauge advertising effectiveness. This is
typically conducted among users as well as non-users. It measures advertising
recall, awareness of the advertisement and the brand, intention to try after
viewing the advertisement overall purchase intention, etc.
PUBLIC RELATION
“ Public relations practice is the deliberate planned and sustained effort to establish
and maintain mutual understanding between the organisation and its publics”.
By :- Institute of Public Relation (British) 1948.
To understand the definition better it in important to know as to who does the word
publics refer to.
Public are -
: Shareholder
: Customers
: Employees
: Trade Unions
Public Relations
Here we try to identity the distinguishing factors between Advertising and public
relations:
Advertising is a commercial persuasive activity aimed at promoting a particular idea
or a viewpoint product, or service, institution and so on through the mass media.
As refined by the British Institution & Practitioners of Advertising:-
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“ADVERTISING presents the most persuasive possible selling message to the light
prospects for the product or service at the lowest possible cost on the other hand “.
Public Relations demands more time and effort than advertising because advertising is
limited to special selling and buying tasks. For advertising the basis jobs of conceptu-
alizing , producing, space buying etc. Can be delegated folly to agencies whereas such
total hiring of agencies for absolute Public Relation functions cannot be conserved.
Public relations is a long-term policy measure and is not built overnight. It is also not
free of cost, it is built over a period of time.
“With public opinion against it nothing can succeed”.
“With public opinion on its side nothing can fail”
- Abraham Lincoln
Public relations, taken as a component of management discipline, is of comparatively
recent origin. As a concept, it was critically evolved in business and industry and
subsequently spread to other areas of human activity. Applicability of this profession
in government and public institutions like corporations, municipalities, universities,
hospitals, social service organisation and professional institutions it truly immense.
Admittedly, even before the emergence of industry, business and government, a
public relation was in practice in people’s daily life. In effect, a public relations is the
result of the action inherent in an individual, an institution or an organisation.
Public relations is never a private monopoly of PR practitioners. In fact, members of
an organisation, and especially those in leadership, management and supervisory
positions have a PR role to play and often even singularly. People adept in the art of
public relations stand better chances of success and survival since they can always
find areas of mutual interest. They also use modern methods of communication and
persuasion which go a long way in establishing mutual understanding based on truth,
knowledge and complete information.
21
THE SIGNIFICANCE OF PR IN HUL
It may be useful to begin by first getting out of the way certain popular notions which,
as with many popular beliefs are either without any basis in reality or at best express
only half truths. For instance, PR men are regarded by some to be fixers, a breed of
people who will wangle things for you by the most questionable methods. There is
also a popular idea that PR men spend most of their time winning and dining, using
for the purpose fabulous expense accounts they are supposed to have access to. While
no one can prevent a charlatan from posing as a PR man or styling himself as a PR
consultant he is no more a tine practitioner of PR than a quack selling magic remedies
by the wayside is a physician. How deep-seated such popular misconceptions about
PR can be reflected by the fact the even now one comes across articles published in
well-known papers and journals airing such naive ideas about PR
Again, PR is sometimes confused with publicity. Publicity is certainly one of the
instruments of PR but is would be as wrong to equate publicity with PR just as it
would be to equate the stethoscope with the practice of modern medicine. To
continue the analogy, PR seeks to diagnose the ills of an organisation in its relations
with the public or any segment of the public, it prescribes remedies and proceeds to
administer them. It then keeps a watch on the patient to see whether the remedies
prescribed are producing the desired effect so that the medicine can be changed if
necessary after evaluating the results. Again, as in medicine prevention is considered
more important than the cure, PR believes in maintaining the good health of the
corporate body -so that drastic remedies and bitter pills may not have to be swallowed
later.
Analogies may be useful in giving a general idea but can never be as precise as a
definition. PR which is now a well-established discipline therefore needs to be
defined so that we may be clear about what we are discussing when we talk about PR.
It is ‘the attempt by information, persuasion and adjustment to engineer public
support for an activity, cause movement or institution. ‘Public relations as and
applied social and behavioral science is that function which - measures, evaluates and
22
interprets the attitudes objectives for increasing public understanding and acceptance
of the organization’s products, plans, policies and personnel; equates these objectives
with the interests, needs and goals of the various relevant publics; and develops,
executes and evaluates a programme to earn public understanding and acceptance.
AN OVERVIEW
Public relations today is still a very underdeveloped field. It is growing in
prominence and has started showing results in various sectors of corporate India.
More and more companies are making use of PR to solve their problems and increase
their overall corporate equity. The entire process needs a closer look.
To gauge the effectiveness of PR in HUL over the last decade it is necessary to
examine its function and overall areas of applicability.
Social Responsibility of Business and Introduction
The need for PR arises also from the responsibility that an organisation owes to the
society, which nurtures it and enables it to function and operate. No organisation,
leave aside a modern business organisation, can function in a vacuum. It flourishes
only because a particular kind of social environment exists. This environment is often
taken for granted but in times of social turmoil when normal conditions are disrupted
the dependence of the organisation on the social environment is brought home
sharply. How often have we not seen during periods of national strife or serious
political instability leading to a break down of law and order that business comes to a
standstill? While these may be extreme examples they illustrate the fact that without
the right social environment no business can exist. Thus every business organisation
has a stake in the social environment and must contribute its mite towards its
continued existence and improvement.
A business organisation’s responsibilities to society cover a wide area. They range
from its responsibility to supply quality products at a reasonable price and to ensure
that it reaches the consumer at the right time and place to its responsibility to
contribute to the development of the ‘Infrastructure, to the realization of national
objectives and to the identification of its interest with the vast population of the
23
country in which it operates. The world over business organisation which are forward
looking and farsighted are trying to make a contribution to social causes apart from
achieving their immediate and ultimate ends of producing goods for sale and
marketing them at a profit. Such contributions can range from grants to universities,
scholarships of various kinds, aid to hospitals and charitable institutions to actual
involvement in projects of social significance. An organisation in the USA sponsored
a research fellowship to discuss the causes of student unrest and to find solutions to
the problems of tension in the campuses. In India too there are business
organizations, which are aware of their social responsibility and have made an effort
to discharge it in accordance with their resources and the needs of the situation.
Studies on the extent of industrial pollution and ways and means of combating it,
Involvement in family planning programmes, development of low cost nutritious food
for the poorer sections of the people, studies on the causes of a State’s decline and the
steps needed to restore it to health are some examples of social responsibility in
corporate behaviour as practiced in India in recent years. But there is little doubt that
instances of such conduct are few indeed in relation to the enormity of the problems
facing a country as vast as India with a burgeoning population a large part of it living
below the poverty line.
PR and Environmental Path of HUL
The present generation has, quite understandably, made the environment a focus of
attention. With growing environmental awareness, there is now a clear perception that
our activities affect not only the air we breathe, but even the air which regulates our
climate. More importantly, uncontrolled activities cannot be sustained without loss of
plant and species, natural habitats, coast and hinterland and the decay of buildings,
places of natural beauty or historic interest. Hence, the need for a genuine
commitment to sustainable development which is integrated with the national policy
on industry, energy, transport, trading and planning.
In the above context, public relations professionals are well placed to direct attention
to environmental issues and can make a unique contribution to public and professional
debate, and to environmental education. In fact PR has to live up to its environment
24
education. In fact PR has to live up to its environmental responsibilities even when
clear, universally agreed targets are still lacking in many issues. The responsible PR
person must ensure that his organisation is greener than green on all the major issues
according to current opinion, demonstrate to the world at large that this is so, and, for
the future, help form opinions and set the standards for the organisation’s own as well
as the common good.
In a nutshell, environment is now a corporate concern and today’s PR persons have to
build up comprehensive communication programmes, internal as well as external,
which involve listening just as much as talking.
Now, environment is no more just a slogan, it is a key consumer issue.
PR today must:
* Understand ‘green’ issues and recognize the social responsibility of business.
* Make environment matters a priority.
* Consider the environmental impact of the company’s actions.
* Avoid pollution of any kind.
* Encourage environment audits to determine what the organisation has done
and is doing in relation to the environment.
* Ensure recycling of wastes.
Social Responsibility as Public Relations at HUL
A citizen’s role extends beyond his or her call of duty. A responsible corporate
citizen needs to look beyond the financial numbers of sales and profit growth, from
year to year.
HUL is committed to the development of the community around its manufacturing
complexes. Over the years, HUL has not just supported communities financially, but
has worked towards providing people with skills to earn a sustainable livelihood.
HUL’s long-term aim is to raise economic standards of these communities, through
self-sustainable measures.
25
PR Role in Image and Identity
It is true that corporate image concerns the industrial marketer directly as brand image
is crucial for the consumer market. The ordinary consumers, while oblivious of the
name of the manufacturer, can easily identify the brands of consumer products.
Repeat this test for industrial goods : the same respondents are aware of the name of
the manufacturers but many won’t be able to name the industrial products.
Interestingly, a third set of organisation would be known both for their industrial or
consumer products as well as for their distinct corporate image. Where does corporate
PR stand in these diverse settings? Although easier desired than achieved, PR
attempts to create the desired image by its involvement in all the factors of corporate
identification programmes.
GOVERNMENT RELATIONS
A government relation has two facets to it. Firstly, the PR for the government (as an
organisation) and Secondly, PR with the governments as the target group. Both are
important and very needed by corporations.
Public relations for the government involves mobilising public support for
government’s activity, for instance, family planing, control, environmental protection,
beautification of cites, etc. the company generally sponsors some of these activities by
providing monetary help or other resources. The basic objective of the company is to
build relations with the governments, and also help for the good of the community of
society.
Public relations with the government involves keeping the government—politicians
and bureaucrats—on your side. It envisages maintaining good links with the
government, which will be of benefit to the company in its overall business plans and
operations. Public relations with the government in some ways is quite difficult and
demanding. It requires special planning and efforts for the organisation to be
successful. A government, local or national, comprises many ministries, departments,
individuals and personalities. Public relations people have to acquaint themselves
26
with the working of the government, and the intricacies and people involved at
various levels, and then handle things accordingly to be able to achieve what they
have set out to achieve.
The government should not be looked at as an adversary. In fact, you should make all
efforts to help the government and support its activities and policies as far as possible.
Government leaders must be kept informed from your side about the organisation’s
activities and policies—especially those which are contributing to the welfare and
development of the state or the nation. Such relations will be mutually beneficial in
the short-term and the long-term. Corporations should, however avoid getting
involved with politics and political issues.
MEDIA RELATIONS
Media relations Is a vital tool in PR. A large amount of communications and PR are
conducted through the media—especially the Press. When a company gets media
coverage, it is not always flattering. Business is always vulnerable to attacks by the
media. Media can often aggravate problems—especially crises. As in the case of
Union Carbide and HUL a few years ago. Hence, media, particularly the Press has to
be handled very carefully. The media must be kept on your side. All efforts must be
made to ensure this strategically. It takes years to build a good image, but to destroy
it you need just a few bad reports in the media.
It is important to build a working ‘rapport’ with the media. You cannot afford
unnecessary reactions and distortions. If you do go to the media then always go with
a strategy—be selective in the choice of media, use only influential media (especially
publications in the Press), do not spread your communication too thin, go for quality
rather than quantity. Selective and in-depth coverage is what you must aim at, as it is
more effective and produces the desired results. let your communication be complete
honest, and backed with hard facts. The organisation must be able to live up to its
claims and promises in media, otherwise you can be in for further problems. The
efforts made by HUL in this respect have been orchestrated well to build image as
well as to counter negative publicity.
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FINANCIAL RELATIONS
With the growth of the Indian economy and the business sector, management of
financial promotions and PR has taken on a new dimension. HUL is making special
efforts to ensure the goodwill of their shareholders, investors, financial institutions,
and the rest of the financial community. This is being done in the mass media and
specialised media ranging from annual reports to special brochures to audio-visuals,
video films, and even corporate advertising in the Press and television.
The main target group of a company in financial PR is its shareholders and potential
investors. They have to be given information they are entitled to have, and they have
to be kept interested in the company. Public relations must establish, maintain, and
improve the company’s image and reputation so that it can obtain funds from the
public and the financial institutions on the most favorable terms when it desires so
The financial and business Press, today, is very important in achieving this objective,
The importance of financial PR and the need for it is seen from the number and
growth of PR agencies specialising in financial promotion, advertising and PR
management in India. These include well-known names like Pressman, Clea, and
Sobhagya, now a host of others. They provide their clients a wide range of services
and expertise in PR and advertising.
CUSTOMER RELATIONS
In the past PR and marketing were considered separate and unconnected activities of
business in a company. Today, PR has a role to play in marketing not only to build
image, but to also help solve problems concerning a company’s products
Or services among consumers or other special groups, and generally protecting the
company’s reputation at the marketplace. Public relations with customers, and with
suppliers, in industrial products/services marketing at the institutional level is gaining
more and more importance today.
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In today’s competitive market customers opt for products that are known and have an
image, and are backed by quality and good after sales service. Marketing people
cannot ignore public opinion on such aspects. In the long run, unfavorable opinions
certainly affect sales. Public relations can help in controlling and setting right some
of these opinions; it is therefore essential for companies to assign some of their
attention and resources to develop PR in marketing.
COMMUNITY RELATIONS
Today, the relationship between corporations and the community is a vital issue in
management of business organisations. It is acknowledged that business is no longer
done for the sake of profits alone. Because a company functions within a community,
its responsibility extends to giving back to the community something for what it
makes from it. This has been the philosophy of the Tata’s in India for years, today it
is accepted and is being followed by a number of other companies. This belief is now
also considered important and crucial by the government, consumerists and opinion
leaders.
Company relations at an organisation can vary from local community welfare
activities, to large-scale sustainable development programmes for the betterment of
lives of people. Companies have to consider the community as one of its prime target
groups. The objective of PR is to help build image of the company: as a good
corporate Citizen, a good company to do business with, and a good company to work
for.
EMPLOYEE RELATIONS
In employee relations, communicators are vital at every level. From top to bottom,
also from lower level to the top management level, and even the horizontal
communications among colleagues at the same level and between functions. The
basic function of communications and PR in the organisation is not just better
functioning, but a fostering of goodwill, trust, and togetherness among employees.
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Employee in HUL one in a large number and they include both blue collar to white
collar. Internal PR must reach out to all of them. This makes the task tough and
critical, requiring much thinking and planning. Before planning PR programmes,
therefore, it is important to first assess the needs and requirements of employees. One
of the major goals of PR is to foster the participation of employees in decision-
making, for this PR programmes must be evolved around their motivations, job
enrichment, training and development, working environment, productivity, and
overall growth in the company. This, in other words, means PR for better employees,
better employee morale, and better relationships, resulting in success and growth of
the organisation; and therefore, a better image and reputation for it.
In the case of PR with employee, the function may seen to overlap with the working
of the company’s personnel department. In practice, however, it is necessary that the
two departments work closely together. They can mutually reinforce each other,
especially in areas like HRD. It is worth trying to integrate HRD with PR, if possible,
in a company. More so when with the growth of organisations in size, the individual
employee is becoming smaller and less significant, and thus losing his or her identity.
Public relations with HRD can play a crucial role in building and motivating the
employees on their jobs and in their contributing towards achieving the company
goals.
INDUSTRIAL RELATIONS
This is another important area of work for PR executives. Its importance is growing,
with staff and workers getting to be united, more enlightened and demanding.
Whether they are unionized or not does not make a difference in the PR work, in
either case, good relations have to be maintained. In the case of unions, it is
important to realize that unions have their own goals. This makes it more difficult to
deal with them in many respects. Understanding these goals, and how they will affect
Industrial relations and PR efforts, is the first priority in dealing with unions.
Industrial relations concern the staff and workers in their relationship, as individuals
and as a group, with the management. Industrial relations are most often concerned
with problems related to wages, other monetary benefits, conditions of work.
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PERSONAL PRODUCTS
31
PERSONAL PRODUCTS : THE CORE CONCERN OF
ADVERTISING
1. Fair & Lovely
Fair & Lovely - the miracle worker
Based on a revolutionary breakthrough in skin lightening technology, Fair & Lovely
was test marketed in 1975 and has been nationally marketed since 1978.
In fact, Fair & Lovely has been extensively tested with consumers in India and
abroad, and has been proven to be superior in terms of benefit delivery to all key
competitive brands.
Fair & Lovely's formulation contains a unique fairness system that contains a
combination of active agents and sunscreens. This has been specially designed and
proven to deliver one to three shades of change in most people. Also its sunscreen
system is specially optimized for Indian skin. Indian skin unlike Caucasian skin tends
to 'tan' rather than 'burn' and, hence, requires a different combination of UV A & UV
B sunscreens.
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The fairness cream is marketed in over 38 countries through HUL Exports and local
Unilever companies and is the largest selling skin lightening cream in the world. The
brand today offers a substantive range of products to consumers including Fair &