mohit market ting term paper

8/7/2019 Mohit Market Ting Term Paper

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TERM PAPER

ON

MARKETING MANAGEMENT

TOPIC : Identify a FMCG organization and

study the Product Strategy for the same

SUBMITTED TO:

KRISHNA GOPAL SIR

SUBMITTED BY:

KUMAR MOHIT11007093

T1002 B46


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DECLARATION

I Kumar Mohit Student of MBA 2nd SEM here bydeclarethat this research report is an original work done bymeindependently and or any part of this work has notbeenpublished for the award of any other Degree or

Diploma.Project I herby that the report titled A study onmarketing strategies of different Products ofHULLtd is the requirement of the M.B.A.,lpu is myown efforts information furnished in this researchreport,is true to the best of my knowledge.

KUMAR MOHIT

M.B.A. 2nd SemRoll No. T1002 B46


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Contents

Introduction..

Objective....

Methodology..

HUL- Brief History

HUL- Advertising Strategy

Personal Products

Food & Beverages...

Financial News.

Press Releases..

SWOT Analysis

Limitation..

. Suggestion & Recommendation

Conclusion.

Bibliography..


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INTRODUCTIONThe Company being selected for study under this project report isHindustan UnileverLtd; The number one FMCG in India. It can be said beyond any doubt thatHUL is anundisputed leader in FMCG products in urban as well as rural area. HULcaters to 850million 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 successfulimplementations of marketing strategy in urban and rural India cuttingacross so many7 cultural, social, regional, religious, linguistic barriers.Hindustan unilever Limited (HUL) is India's largest fast moving consumergoodscompany. It is a leading player in home and personal care products, foodsandbeverages, and speciality chemicals.

What differentiates HUL?

The product portfolio with its wide range of products sets HUL apart! It hasachievedmarket leadership in soaps and detergents (Surf) as well as hair and skincare products(Sun Silk, Dove, Hamam). It is the second largest manufacturer of dentalcare

products (Close-up, Pepsodent). HUL is also market leader in tea (Taj),processedcoffee (Bru), ice cream (Kwality-Walls), tomato-based products (Kissan),

jams andsquashes (Kissan), and branded staples (Kissan Annapurna).The leading business magazine, Forbes Global, has placed Hindustanunilever at the


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top among the best consumer (household) products companies worldwidefor the current year.With a plethora of brands, Communication becomes imperative.Every company has to communicate the presence of its products to capturea largemarket share. How does a company do that? There are many tools that amarketer canuse: advertising, hoardings, radio, television and internet ads! Whatsmissing is thefreebie! Is sales promotion only made up of atta free with soap?


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Objective

jTo have an overall knowledge of howmarketing of products with regard toFMCG sector takes places with reference toHUL.jTo map the market share of HUL in he Indian

FMCG market.jTo study the different products offered byHUL.jTo study the marketing strategies and publicrelations of HUL.


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METHODOLOGYThe information obtained for the study is fromsecondary data sources. Secondarydata comprises of information obtained fromannual reports, journals, brochures ofdifferent FMCG companys. It also includesorganizational manuals and otherimportant documents maintained and publishedby various FMCG companies.It also includes information collected fromwebsites, business magazines, businessnewspapers etc. Moreover it also containedinformations collected from the variouspamphlets published by different FMCGcompanies.


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HUL - BRIEF HISTORY

The company was incorporated on 17th October, 1933 under the name of LeverBrothers (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 inBombay. Both LBILK and HVM were wholly owned subsidiaries of Unilever Ltd.,London, U.K. HVM later acquired three more vanaspati factories at Shamnagar (WestBengal), Tirchirapalli (Tamil Nadu) and Ghaziabad (U.P) In order to market the toiletpreparations manufactured by LBIL or imported from Unilever companies, amarketing company under the name United Traders Pvt. Ltd. (UTL) was incorporatedon 11th may, 1935 as a wholly owned subsidiary of LBIL. In 1944, the managementof LBIL and HVM was integrated. In November 1956, HVM and two smallassociated companies viz. William Gossage & Sons (India) Pvt. Ltd and JosephCrossfield & Sons (India) Pvt. Ltd., which were wholly owned subsidiaries of

Unilever Ltd., were amalgamated with LBIL and the name was changed to HindustanUnilever Ltd. From 23rd October, 1956 activities of UTL were taken over by itsholding Company LBIL. With the amalgamation of business under one company,Indian capital was introduced in this integrated business in 1956. HUL has beengrowing very rapidly, especially in 1996 the growth was 88.6% HUL became thesecond private company in India after Reliance Industries to cross the Rs 10000 croremark in 1998. At present its valued at Rs. 11764.31 crore.1 Its rapid growth has givenHUL place in the top 5companies regularly in annual BT-500 survey. This hugesuccess has come due to:-Merger with Ponds India LimitedLaunch of 40 new productsDoubling of rural distribution network from 50,000 to one lakh villages


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HUL : ADVERTISING STRATEGYBUILDING 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 whichmany professionals hold firm views, but know surprisingly little about. Some see itas a menace, as an expensive flag waving exercise which their company can easily dowithout. Others regard it as a myth, arguing that publicity by of virtue its obviousnature, cannot hope to change perceived images in peoples minds. At the otherextreme are those who view corporate communications (particularly advertising as amagic formula and an instant panacea for every corporate ill. In reality it is none ofthese things. it is in fact, a management tool to influence the outside world-the targetgroup. So, the real significance of building corporate image lies in preparing andconsolidating 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 marketingstrategy. Building corporate image is concerned with building confidence andcredibility by helping your target group understand you better. Familiarity in this casenormally 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 acombination of activities. For instance-1. Advertising corporate and even product2. Public Relationsexternal and internal3. Media Relations especially the Press4. Customer and Supplier Relations

5. Community Relations good corporate citizenship14

As India transits from a shod age-driven economy to a one propelled by competitionthe reputation and image of a company like HUL will make difference betweenwhether it rules the market or merely rues it. Corporate image is what enables HULto hold its own against rivals like IPCL And HaldiaGood corporate image can be built if you treat it like one of the Ps of marketingthe fifth P stands for Performance professional corporate performance, doing itthe right way the first time. Its in this regard that creativity in PR comes to have alions 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 buildingactivity must to able to find a right niche in the minds of the target group. The qualityof the message, and activity, is vital for this.Companies which benefit most from corporate image are those who take a long-termview and commitment towards communication and the image of their organisationthrough it. HUL can be presented as a striking instance of


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Image and Identity

There may be nothing new in saying that the corporate image is in the eye and themind of the receiver. Yet it is worth saying again and again. An organisationtransmits, 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 isthe process that translates an identity into an image. Again, in brief, corporate imageprimarily refers to the image that a company has acquired with the public whereascorporate identity refers to the image a company strives to achieve, in order to build tobuild a reputation with its publics.15

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 thecompany to achieve the corporate goals. No less important is the belief the companyhas in itself. The mission is the glue that holds the company together. Here, the PRand its communication strategies come into distinct focus. If the mission and the

objectives of the organisation have to succeed, the corporate body must communicateshort-term goals, long-range objectives and even the total mission of the organisation.Inadequate communications result in an ambiguous corporate image within as well asoutside and lead to breakdown in the co-ordination of all contributing elements in anorganisation.

Dare To Think Beyond Advertising.

In present situation to address the "The soprano problem", advertisers resort toshadow 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 thebackground.In India, the first shadow advertisement was used in movie "Bobby" wheremotorcycle "Rajdoot" was advertised. Recently, there was shadow advertisement ofCoca-Cola in Hindi blockbuster "Kaho Na pyar hai". But the problem with shadowadvertisement is that positioning message of the product can't be conveyed toconsumers. Hence, the concept of shadow advertisement can be extended further sothat the theme of the advertising would become endemic to entertaining show. Thiswould be no more exclusive advertising. Rather, advertising will be a part of theentertainment. But this has to be done in a delicate manner so that the informationabout the product is passed on to the viewers without disturbing the entertainingelement 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 becomean irritating word in the mind of the audience. Even though advertainmentseemsquite close to it, but it would be more evolved. Since in advertainment we try toadvertise and entertainment comes with it. But in the recommended solution Hulwants to entertain the audience only and advertisement is an integral part of the show.The major question would be, whether the audience would be able to comprehend thehidden positioning message? Here are few examples on how to make the positioningmessage integral part of the show. Hul have programmes like "Antakshari" in which


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participants take part in groups. The groups can be named after some brands and theparticipants would be projected as such that they would be personification of brands.Suppose one group is named Lux, the participants are expected to be beautifulwomen who stand forLux. So this can be done for many programmes, which hasformat 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 thecontext has to be right and should be very much along the script not that it woulddestroy the element of entertainment. Hence the major challenge would lie beforescriptwriter and director. Even a particular character of an opera becomes verypopular as the opera becomes very popular. Hence building such character, whichwould personify the brand and both the character as well as the brand would grow indue course of time. However even if time constraint is removed, course contentconstraint comes in. But the scope of story telling is far greater. Attention grabbingwill be replaced with attract attention and no zipping/zapping problem. Audience willbe more receptive and comprehension of course would be dependent upon how it isexecuted. 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 ineach episode of a family soap where there would be opportunity to celebrate and drinkcoke! To give another example, a multi utility vehicle with safe driving positioningplank 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, infuture big advertisers like HUL would be diversifying to entertainment business! Ofcourse the ad budget of HUL is far bigger than the total budget of many entertainmenthouses.Irrespective of whatever positive points or negative points it has, this concept can betried for programmes aired in pay channels simply because there is no other17

alternative to advertise during the programme. Besides it is expected to solve the otherproblems those are discussed above. Advertisement would be no more thetroublemaker and irritating. Hence catching attention would be much easier. Onlytesting of this idea could help us to conclude whether to roll out from the conceptfrom programmes of pay channels to programmes of free channels.

Advertising

DOING BUSINESS WITHOUT ADVERTISING IS LIKE

WINKING AT AGIRL IN THE DARK; YOU KNOW WHAT YOU ARE DOING,BUT NOBODYARE DOES

According to the American Marketing Association, Chicago adverting is any paid


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form ofnon personal presentation of ideas, goods and services by an identifiedspoor.

Advertising is a form of persuasive communication with the public.The communication is usually one-sided from the Advertiser to the publicThe object Advertising are :-

(1) Inform customers of the goods and services.(2) Brings out the product use Ps(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 downby the company. The advertising agency also adheres to the company norms. A clearsequence of activities is followed. This has been outlined below:1. Usage and Attitude Study Before a new product or advertising idea isinvolved, a complete quantitative research study is carried out in order to18

fully understand the needs, wants, preferences, purchases and consumptionhabits of the target segment. The results of the study typically point out anyopportunities that can be exploited in terms of unsatisfied consumer needs.On the basis of the above results, a new product or advertising concept isevolved.

2. Concept Testing

Once the new concept has been thought of, it goes intoqualitative research. This qualitative research primarily focuses on testing theacceptance of the concept by the target segment as well as the evolving of anappropriate positioning plank. The positioning could be attribute, cost orbenefit based. Based on consumer feedback, an appropriate positioningplatform is determined.3.Agency BriefOnce the concept testing is successfully complete, the BrandManager prepares a brand positioning statement. This is a description of thebrand and includes the product description, likely brand name, category,name, variants (if any) and key brand benefits (sensory, functional andemotional). 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 hasbeen approved by the client, the animatics go into testing. These areadvertisements made from frame-by-frame shots of the storyboard withappropriate music/dialogue/voice over. This is more economical when


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compared to shooting the actual advertisement. The animatics are shown tothe sample audience for feedback and frame-by-frame analysis. The name,product design, ambience, music and overall purchase intention after viewing19

the advertisement are measured. Brand personification may be included. Ifthe results are positive, the advertising concept is frozen.5. Media Brief This is given to the media planner and is similar to the agencybrief. However, it includes media vehicles desired required awareness,frequency (number of exposures) and reach (% target segment who shouldview it).6. Post Launch DipstickAfter the advertisement is released, a post-launchstudy may be conducted in order to gauge advertising effectiveness. This istypically conducted among users as well as non-users. It measures advertisingrecall, awareness of the advertisement and the brand, intention to try afterviewing the advertisement overall purchase intention, etc.

PUBLIC RELATION Public relations practice is the deliberate planned and sustained effort toestablishand 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 wordpublics refer to.Public are -: Shareholder: Customers

: Employees: Trade Unions

Public Relations

Here we try to identity the distinguishing factors between Advertising and publicrelations:

Advertising is a commercial persuasive activity aimed at promoting a particular ideaor a viewpoint product, orservice, institution andso on through the mass media.

As refined by the British Institution & Practitioners of Advertising:-20

ADVERTISING presents the most persuasive possible selling message to thelight

prospects for the productor service at the lowest possible coston the other hand.

Public Relations demands more time and effort than advertising because advertising is


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limited to special selling and buying tasks. For advertising the basis jobs ofconceptualizing , producing, space buying etc. Can be delegated folly to agencieswhereas such total hiring of agencies for absolute Public Relation functions cannot beconserved.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 publicopinion against it nothing can succeed.With publicopinion on its side nothing can fail- Abraham Lincoln

Public relations, taken as a component of management discipline, is of comparativelyrecent origin. As a concept, it was critically evolved in business and industry andsubsequently spread to other areas of human activity. Applicability of this professionin 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, apublic relation was in practice in peoples daily life. In effect, a public relations is theresult 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 ofan organisation, and especially those in leadership, management and supervisorypositions have a PR role to play and often even singularly. People adept in the art ofpublic relations stand better chances of success and survival since they can alwaysfind areas of mutual interest. They also use modern methods of communication andpersuasion which go a long way in establishing mutual understanding based on truth,knowledge and complete information.

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 expressonly half truths. For instance, PR men are regarded by some to be fixers, a breed ofpeople who will wangle things for you by the most questionable methods. There isalso a popular idea that PR men spend most of their time winning and dining, usingfor the purpose fabulous expense accounts they are supposed to have access to. Whileno one can prevent a charlatan from posing as a PR man or styling himself as a PRconsultant he is no more a tine practitioner of PR than a quack selling magic remediesby the wayside is a physician. How deep-seated such popular misconceptions aboutPR can be reflected by the fact the even now one comes across articles published inwell-known papers and journals airing such naive ideas about PR

Again, PR is sometimes confused with publicity. Publicity is certainly one of theinstruments of PR but is would be as wrong to equate publicity with PR just as itwould be to equate the stethoscope with the practice of modern medicine. Tocontinue the analogy, PR seeks to diagnose the ills of an organisation in its relationswith the public or any segment of the public, it prescribes remedies and proceeds to


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administer them. It then keeps a watch on the patient to see whether the remediesprescribed are producing the desired effect so that the medicine can be changed ifnecessary after evaluating the results. Again, as in medicine prevention is consideredmore important than the cure, PR believes in maintaining the good health of thecorporate 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 adefinition. PR which is now a well-established discipline therefore needs to bedefined 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 publicsupport for an activity, cause movement or institution. Public relations as andapplied social and behavioral science is that function which - measures, evaluates and22

interprets the attitudes objectives for increasing public understanding and acceptanceof the organizations products, plans, policies and personnel; equates these objectiveswith 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 inprominence 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 increasetheir 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 toexamine 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 thesociety, which nurtures it and enables it to function and operate. No organisation,leave aside a modern business organisation, can function in a vacuum. It flourishesonly because a particular kind of social environment exists. This environment is oftentaken for granted but in times of social turmoil when normal conditions are disruptedthe dependence of the organisation on the social environment is brought homesharply. How often have we not seen during periods of national strife or seriouspolitical instability leading to a break down of law and order that business comes to astandstill? While these may be extreme examples they illustrate the fact that withoutthe right social environment no business can exist. Thus every business organisation

has a stake in the social environment and must contribute its mite towards itscontinued existence and improvement.

A business organisations responsibilities to society cover a wide area. They rangefrom its responsibility to supply quality products at a reasonable price and to ensurethat it reaches the consumer at the right time and place to its responsibility tocontribute to the development of the Infrastructure, to the realization of nationalobjectives and to the identification of its interest with the vast population of thecountry in which it operates. The world over business organisation which are forward


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looking and farsighted are trying to make a contribution to social causes apart fromachieving their immediate and ultimate ends of producing goods for sale andmarketing them at a profit. Such contributions can range from grants to universities,scholarships of various kinds, aid to hospitals and charitable institutions to actualinvolvement 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 tothe problems of tension in the campuses. In India too there are businessorganizations, which are aware of their social responsibility and have made an effortto 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 foodfor the poorer sections of the people, studies on the causes of a States decline and thesteps needed to restore it to health are some examples of social responsibility incorporate behaviour as practiced in India in recent years. But there is little doubt thatinstances of such conduct are few indeed in relation to the enormity of the problemsfacing 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 ofattention. With growing environmental awareness, there is now a clear perception thatour activities affect not only the air we breathe, but even the air which regulates ourclimate. More importantly, uncontrolled activities cannot be sustained without loss ofplant and species, natural habitats, coast and hinterland and the decay of buildings,places of natural beauty or historic interest. Hence, the need for a genuinecommitment to sustainable development which is integrated with the national policyon industry, energy, transport, trading and planning.In the above context, public relations professionals are well placed to direct attentionto environmental issues and can make a unique contribution to public and professionaldebate, and to environmental education. In fact PR has to live up to its environment24

education. In fact PR has to live up to its environmental responsibilities even whenclear, universally agreed targets are still lacking in many issues. The responsible PRperson must ensure that his organisation is greener than green on all the major issuesaccording to current opinion, demonstrate to the world at large that this is so, and, forthe future, help form opinions and set the standards for the organisations own as wellas the common good.In a nutshell, environment is now a corporate concern and todays 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 companys actions.* Avoid pollution of any kind.


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* Encourage environment audits to determine what the organisation has doneand is doing in relation to the environment.* Ensure recycling of wastes.

Social Responsibility as Public Relations at HUL

A citizens role extends beyond his or her call of duty. A responsible corporatecitizen needs to look beyond the financial numbers of sales and profit growth, fromyear to year.HUL is committed to the development of the community around its manufacturingcomplexes. Over the years, HUL has not just supported communities financially, buthas worked towards providing people with skills to earn a sustainable livelihood.HULs long-term aim is to raise economic standards of these communities, throughself-sustainable measures.

PR Role in Image and Identity

It is true that corporate image concerns the industrial marketer directly as brand imageis crucial for the consumer market. The ordinary consumers, while oblivious of thename 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 ofthe manufacturers but many wont be able to name the industrial products.Interestingly, a third set of organisation would be known both for their industrial orconsumer products as well as for their distinct corporate image. Where does corporatePR stand in these diverse settings? Although easier desired than achieved, PRattempts to create the desired image by its involvement in all the factors of corporateidentification programmes.

GOVERNMENT RELATIONS

A government relation has two facets to it. Firstly, the PR for the government (as anorganisation) and Secondly, PR with the governments as the target group. Both areimportant and very needed by corporations.Public relations for the government involves mobilising public support forgovernments activity, for instance, family planing, control, environmental protection,beautification of cites, etc. the company generally sponsors some of these activities byproviding monetary help or other resources. The basic objective of the company is tobuild relations with the governments, and also help for the good of the community of

society.Public relations with the government involves keeping the governmentpoliticiansand bureaucratson your side. It envisages maintaining good links with thegovernment, which will be of benefit to the company in its overall business plans andoperations. Public relations with the government in some ways is quite difficult anddemanding. It requires special planning and efforts for the organisation to besuccessful. A government, local or national, comprises many ministries, departments,individuals and personalities. Public relations people have to acquaint themselves


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with the working of the government, and the intricacies and people involved atvarious levels, and then handle things accordingly to be able to achieve what theyhave set out to achieve.The government should not be looked at as an adversary. In fact, you should make allefforts 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 organisationsactivities and policiesespecially those which are contributing to the welfare anddevelopment of the state or the nation. Such relations will be mutually beneficial inthe short-term and the long-term. Corporations should, however avoid gettinginvolved with politics and political issues.

MEDIA RELATIONS

Media relations Is a vital tool in PR. A large amount of communications and PR areconducted through the mediaespecially the Press. When a company gets mediacoverage, it is not always flattering. Business is always vulnerable to attacks by themedia. Media can often aggravate problemsespecially crises. As in the case ofUnion Carbide and HUL a few years ago. Hence, media, particularly the Press has tobe handled very carefully. The media must be kept on your side. All efforts must bemade to ensure this strategically. It takes years to build a good image, but to destroyit you need just a few bad reports in the media.It is important to build a working rapport with the media. You cannot affordunnecessary reactions and distortions. If you do go to the media then always go witha strategybe selective in the choice of media, use only influential media (especiallypublications in the Press), do not spread your communication too thin, go for qualityrather than quantity. Selective and in-depth coverage is what you must aim at, as it ismore effective and produces the desired results. let your communication be completehonest, and backed with hard facts. The organisation must be able to live up to itsclaims and promises in media, otherwise you can be in for further problems. Theefforts made by HUL in this respect have been orchestrated well to build image aswell as to counter negative publicity.

FINANCIAL RELATIONS

With the growth of the Indian economy and the business sector, management offinancial promotions and PR has taken on a new dimension. HUL is making specialefforts 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 potentialinvestors. They have to be given information they are entitled to have, and they haveto be kept interested in the company. Public relations must establish, maintain, andimprove the companys image and reputation so that it can obtain funds from thepublic and the financial institutions on the most favorable terms when it desires soThe financial and business Press, today, is very important in achieving this objective,


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The importance of financial PR and the need for it is seen from the number andgrowth of PR agencies specialising in financial promotion, advertising and PRmanagement in India. These include well-known names like Pressman, Clea, andSobhagya, now a host of others. They provide their clients a wide range of servicesand expertise in PR and advertising.

CUSTOMER RELATIONS

In the past PR and marketing were considered separate and unconnected activities ofbusiness in a company. Today, PR has a role to play in marketing not only to buildimage, but to also help solve problems concerning a companys productsOr services among consumers or other special groups, and generally protecting thecompanys reputation at the marketplace. Public relations with customers, and withsuppliers, in industrial products/services marketing at the institutional level is gainingmore and more importance today.28

In todays competitive market customers opt for products that are known and have animage, and are backed by quality and good after sales service. Marketing peoplecannot ignore public opinion on such aspects. In the long run, unfavorable opinionscertainly affect sales. Public relations can help in controlling and setting right someof these opinions; it is therefore essential for companies to assign some of theirattention and resources to develop PR in marketing.

COMMUNITY RELATIONS

Today, the relationship between corporations and the community is a vital issue inmanagement of business organisations. It is acknowledged that business is no longerdone 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 itmakes from it. This has been the philosophy of the Tatas in India for years, today itis accepted and is being followed by a number of other companies. This belief is nowalso considered important and crucial by the government, consumerists and opinionleaders.Company relations at an organisation can vary from local community welfareactivities, to large-scale sustainable development programmes for the betterment oflives of people. Companies have to consider the community as one of its prime targetgroups. The objective of PR is to help build image of the company: as a goodcorporate Citizen, a good company to do business with, and a good company to workfor.

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 horizontalcommunications among colleagues at the same level and between functions. Thebasic function of communications and PR in the organisation is not just betterfunctioning, 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 whitecollar. Internal PR must reach out to all of them. This makes the task tough andcritical, requiring much thinking and planning. Before planning PR programmes,therefore, it is important to first assess the needs and requirements of employees. Oneof the major goals of PR is to foster the participation of employees in decisionmaking,for this PR programmes must be evolved around their motivations, jobenrichment, training and development, working environment, productivity, andoverall growth in the company. This, in other words, means PR for better employees,better employee morale, and better relationships, resulting in success and growth ofthe 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 workingof the companys personnel department. In practice, however, it is necessary that thetwo 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 individualemployee 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 theemployees on their jobs and in their contributing towards achieving the companygoals.

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, ineither case, good relations have to be maintained. In the case of unions, it isimportant to realize that unions have their own goals. This makes it more difficult todeal with them in many respects. Understanding these goals, and how they will affectIndustrial relations and PR efforts, is the first priority in dealing with unions.Industrial relations concern the staff and workers in their relationship, as individualsand as a group, with the management. Industrial relations are most often concernedwith problems related to wages, other monetary benefits, conditions of work.


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PERSONAL PRODUCTSPERSONAL PRODUCTS : THE CORE CONCERN OF

ADVERTISING

1. Fair & LovelyFair & Lovely - the miracle worker

Based on a revolutionary breakthrough in skin lightening technology, Fair & Lovelywas test marketed in 1975 and has been nationally marketed since 1978.In fact, Fair & Lovely has been extensively tested with consumers in India andabroad, and has been proven to be superior in terms of benefit delivery to all keycompetitive brands.Fair & Lovely's formulation contains a unique fairness system that contains a

combination of active agents and sunscreens. This has been specially designed andproven to deliver one to three shades of change in most people. Also its sunscreensystem is specially optimized for Indian skin. Indian skin unlike Caucasian skin tendsto 'tan' rather than 'burn' and, hence, requires a different combination of UV A & UVB sunscreens.

The fairness cream is marketed in over 38 countries through HUL Exports and localUnilever companies and is the largest selling skin lightening cream in the world. Thebrand today offers a substantive range of products to consumers including Fair &Lovely Fairness Reviving Lotion, Fair & Lovely Fairness Cold Cream and Fair &Lovely Fairness Soap.

PondsPond's - the beauty expert

Pond's Cold Cream was launched in India in 1947 and was followed by the launch ofPond's Dream flower Talc 1956. The current skin offerings under the Pond's Brandname include Moisturising Cold Cream, All Day Oil Control Cream, Daily FaceWash, Blackhead Removal Strips and Dream flower Body Lotion. In talcs, Pond'snow has four variants. Pond's Dream flower Talc is now enhanced with 'FloralExtracts', Pond's Sandal Talc is a sandal variant with 'Natural Sunscreen', Pond's Light'n' Fresh comes with SAM (Sweat Absorption Material), while Pond's Magic Deo-Talc now has a new enhanced deodorant protection.Pond's is about beauty that reflects the times. Pond's brings superior and innovativesolutions to meet all skin care needs by delivering outstanding personal beauty33

solutions - through scientific skin expertise, extensive research and stringent producttesting.Pond's track record reveals an ensemble of products that make a real noticeabledifference, proving therefore that Pond's remains the most trusted beauty expert in theconsumer's mind.


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3. Oral Care ProductJee Ke Dekho YarClose-Up

Close-Up, the youth brand, was the first gel toothpaste to be launched in India in 1975and has remained the category leader ever since. The brand arose out of a universalneed for confidence in a social situation, starting with fresh breath.In 2002, Close Up was relaunched in two variants - Close-Up Tingly Red andClose-Up Eucalyptus Waves. Close-Up Tingly Red and Close-Up EucalyptusWaves with their superior formulation provide superior cleaning, enhanced flavourand a freshness that extends from nose to throat. The communication for Close-Up34

focuses on the base line, Jee Ke Dekho Yaar, which encourages young people to goout and get a life!The new flavours are in line with HULs endeavour to continuously innovate andoffer new advanced products to the consumers. These flavours have been speciallydesigned to win over competition consumers.Recently, Close-Up Whitening, the tooth-whitening variant, was introduced with aunique self check device called shade card. This helps consumers identify howyellowtheir teeth really are and also to track the improvement in teeth colour asthey use the paste. The toothpaste helps teeth get whiter in 4 week of regular use.

4. Hair Care Product :

ySunsilk

Sunsilk - the hair expert

Launched in 1964, Sunsilk is the largest beauty shampoo brand in the country.

Positioned as the 'Hair Expert,' Sunsilk has identified different hair needs and offersthe consumer a shampoo that gives her the desired results.The different variants of Sunsilk - Black Shine (for dull hair), Bouncy Volume (forthin, short hair), Silky Strength (for dry hair) and Natural Nourishment (for regularoiled hair) - are based on well researched consumer needs and hair types.The benefits are more compelling and relevant since the variants are harmonised interms of the product mix - fragrance, colour and ingredients are all well linked to cuethe overall synergy. The range comes in premium packaging and design. The accent ison femininity, as captured in the tagline Baalon mein dhadkan, dil meinshararat.Sunsilk was extended to hair colourants in June 2001. The colourants are available in

7 variants that are specially suited to Indian hair and skin tones and colour hair gentlyand safely.

Clinic - for healthy hair

Clinic Plus shampoo was launched in India in the year 1987 and is positioned as the'shampoo that makes your family's hair healthy and glowing.' Clinic Plus is targeted atmothers, educated yet measuring their self-esteem through their children's


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achievements.In the year 1996, Hindustan unilever launched another variant of Clinic shampoo -Clinic All Clear dandruff shampoo. The core proposition of Clinic All Clear is that itis "the only shampoo that gives you dandruff-free soft hair." It is targeted at theappearance conscious young adult, seeking dandruff-free, gorgeous hair to create a

positive impression.

5. DeodorantsAxe - the magnet

Axe, the deodorant that is considered cool, fashionable and stylish by young men waslaunched in India in 1999. Available in more than 60 countries around the world, it isa world leader in male toiletries.

Axe has a mix that is completely harmonised globally - from its proposition andcommunication to the product, as available on the shelf.

Axe is available in four fragrances: Java, Alaska, Atlantis and Voodoo. Voodoo hasbecome the leading male deodorant brand in India within just one and a half yearsfrom its launch.Consumers associate a lifestyle of cool clubs, cool music, and cool fashion with Axe.The youth view it as an icon which introduces many 'firsts' to their world of musicand dance - like the first "World's Longest Dance Party"and the first ever AxeVoodoo Island Party.

6. Colour CosmesticsLakme -on top of the world

Half a century ago, as India took her steps into freedom, Lakme, India's first beautybrand was born. At a time when the beauty industry in India was at a nascent stage,

Lakme tapped into what would grow to be amongst the leading, high consumerinterest segments in Indian Industry - that of skincare and cosmetic products. Armedwith a potent combination of foresight, research and constant innovation, Lakme hasgrown to be the market leader in the cosmetics industry.Lakme today, has grown to have a wide variety of products and services that cover allfacets of beauty care, and arm the consumer with products to pamper herself fromhead to toe. These include products for the lips, nails, eyes, face and skin; andservices like the Lakme Beauty Salons.

Beauty and fashion is not only about looking good but also feeling great, which isreflected in the advertising line for Lakme, On Top Of the World'

SOAPS AND DETERGENTS

1. Fabric Wash

ySurf - Mummy's bestfriend

Launched in 1959, Surf was the first in the Indian detergent powder market. Over the


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years, Surf has anticipated the changing washing needs of the Indian homemaker andconstantly upgraded itself.Surf Excel, India's largest selling compact detergent powder, in its newest avatarpromises to tackle the toughest stains without damaging the color of the fabric. This isbecause only Surf Excel has smart sensors that can differentiate stains from colors.

Now you don't have to worry about tackling the really tough stains, especially on yourcolored clothes anymore. SurfExcel Hai Na!

For those who seek the Surf Excel clean in the front loaders, the specially designedlow suds formulation Surf Excelmatic promises to give just that - a superlative clean.Those preferring the modern and convenient way to wash can rely on Surf ExcelLiquid. The liquid form penetrates deep allowing great wash results. For the reallytough stains, you can apply the liquid directly on the body of stain (through a staintreater) - you will see tough stains being tackled with ease.With years of laundry expertise, Surf Excel now has a Careline,[email protected] that can answer all queries on fabric care.

yWheel

Mehnat kum, phir bhi dhulai No. 1.Wheel - makes washing easy

Wheel is a detergent brand that caters to the laundry needs of the mass market. It wasfirst launched in the year 1987. Wheel Green is the single largest (No 1 by marketshare) detergent brand in India by value.Wheel is packed with powerful lather (power foam) that cleans even tough dirt stainson collars and cuffs with ease. It, therefore, cleans effectively with lesser effort,making a laborious chore like washing - light and easy. Moreover, Wheel does notburn hands or harm clothes like some other detergents, which contain a highpercentage of soda.Wheel also has a premium variant called Active Wheel. It gives the consumer thevalue of 3 benefits in 1. It not only cleans effectively with less effort but also keepsthe colored clothes looking bright and has a great fresh fragrance. Active Wheel givesconsumers 'Quality Clean and Care' at an affordable price. In short, Wheel can besummed up as - 'Mehnat kum, phir bhi dhulai No. 1.' Wheel is, therefore, the smarthousewife's choice.

2. Personal Wash

LifebuoyLifebuoy Family health protection for myfamily and me

Worlds largest selling soap offers a stronger health benefit to the entire familyLaunched in the year 1895, Lifebuoy, for over a 100 years, has been synonymouswith health and value. The brick red soap, with its perfume and popular Lifebuoy

jingle have carried the Lifebuoy message of health across the length and breadth ofthe country, making it the largest selling soap brand in the world.


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In 2002 Lifebuoy was relaunced, marking a new turning point in its history. The newmix includes a new formulation and a repositioning of the brand to make it morerelevant to both new and existing consumers.Lifebuoy is no longer a carbolic soap with cresylic perfume. It is now a milled toiletsoap with a new health fragrance. The new formulation has an ingredient, Active-B,

which offers protection against germs, which can cause stomach infection, eyeinfection and infections in cuts and bruises. The new health perfume has been selectedafter one of the most extensive perfume hunts in the industry. The new milledformulation offers a significantly superior bathing experience and skin feel. The newformulation, new health perfume and superior skin feel, along with the popular redcolour, have registered conclusive and clear preference among existing and new users.The new Lifebuoy is targeted at todays discerning housewife with a more inclusivefamily health protection for my family and me positioning. Lifebuoy has made adeliberate shift from the male, victorious concept of health to a warmer, moreversatile, more responsible benefit of health for the entire family.The new Lifebuoy range now includes Lifebuoy Active Red (125gm, 100 gm and 60

gm) and Lifebuoy Active Orange (100gm). Lifebuoy Active Orange offers theconsumer a differentiated health perfume while offering the health benefit ofLifebuoy.

At the upper end of the market, Lifebuoy offers specific health benefits throughLifebuoy International (Plus and Gold). Lifebuoy International Plus offers protectionagainst germs, which cause body odour, while Lifebuoy International Gold helpsprotect against germs, which cause skin blemishes.

LuxLux - the film stars' choice

Endorsed by popular film stars, Lux is one of the biggest brands in the soap category.Lux was launched in India in the year 1905.Lux comes in 3 attractive variants - Lux Pink is a fragrant ensemble of almond oil,Lux White a rich creation of milk cream and Lux Black (in a pastel shade of lemonyellow) overflows with the goodness of honey, and is also the first of its kind in themarket.The new, exotic addition includes International Lux Skin Care 'Sunscreen Formula'. Aunique soap, which protects the skin's fairness against darkening by the sun. Theproduct contains a combination of sunscreen actives, which are deposited on the skinas a protective layer, even as the soap washes away dirt and grime. This breakthrough,for the first time in the world, is the result of technology patented by HUL.

In short, Lux has worked its charm on millions of women, making their dreams ofbeauty come true.

BreezeBreeze - makes dreams a reality

Launched in 1991, Breeze is a mass-market soap that sells in the economy segment.The fragrant ensemble from Breeze comprises 3 variants, which contain the real


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goodness of natural ingredients such as rose water, sandal extracts and lime extracts,giving skin a glowing radiance.Originally launched in 1989, Breeze is today perceived to be a good value for moneybrand - with outstanding sensory experience. Its strengths are its fragrance, lather andthe soft feeling it has on the skin. A new variant, a hair-and-body soap, Breeze 2-in-1,

was launched in January 2001. Enriched with coconut oil and lime extracts, it was thevery first of its kind and leaves the consumer looking and feeling beautiful.The brand plays a critical role in its consumer's life, because Breeze for her is morethan just soap. It is, in fact, her beauty aid, her only cosmetic, and one that she canafford. She regards Breeze as her only way of fulfilling her dream of lookingbeautiful.

3. Household CareVim

Vim Khar Khar ka moh tod jawab

In 1993 Vim Bar was launched. This product had many benefits including betterclean, ease of handling and easy storage. Vim Bar was re-launched in 1997 with animproved formulation and new communication, which tackled economy andperformance. Much appreciated by the mass market, it resulted in conversions not justfrom powder users, but also from proxy users who did not upgrade to powders butpreferred to use Vim Bar instead.The brand has grown significantly registering strong double-digit growths in bothvolume and value terms. Vim Bar was relaunched a second time in 2002, with aunique Stain Cutter formulation that removes the toughest stains such as burnt milkand ghee stains. This new formulation evolved through research and is now settingbenchmarks in tough stain removal. New Vim offers the consumer a superiorperformance at a great value.Vim is the market leader in the dishwash category. Today Vim is available in powder,bar and liquid form. Vim continuously strives to innovate its products to enhance thelives of its consumers. Whether it be through its new 'Stain Cutter' formula in its VimBar or it's the stain busters in its powders, Vim stands for the best quality in dishwashproducts.


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FOODS AND

BEVERAGES1. Ice Creams

yCornettoKwality Wall's Cornetto - bite bite mein pyar

Launched in the year 1995-96, Cornetto is undoubtedly one of the most popular icecreams in India. Positioned as the icon for romance and special moments - it istargeted at young adults.

However, with its rich multi-sensory eat experience, it is overwhelmingly quoted asthe favourite of consumers across ages.

yFeast

Kwality Wall's Feast -feastingon 'the big FLaunched in 1995-96, the Kwality Wall's Feast range of ice creams and frozendesserts has been positioned as a Youth ice cream brand with an attitude.Over the years, Feast has expanded its 'chocolate only' portfolio to a more diverseone by including refreshment products like Mango Zap, Calypso Punch andJaljeera Blast. This was in keeping in line with the varied need-states of today'syouth.

As part of Kwality Wall's endeavour to consistently reach out to the consumerwith new and exciting flavours, Feast has launched Feast Snacko. The stickproduct is an excellent value for money proposition.

As part of Kwality Wall's endeavour to consistently reach out to the consumerwith new and exciting flavours, Feast is launching a new SKU, viz. Feast Snacko.

The stick product is expected to take the market by storm, as it is an excellentvalue for money proposition.Continually connecting with today's youth, Feast remains the ice cream with . . .The Big F!

yMaxKwality Wall's Max - the 'masti' ice cream

Max, launched in the year 1999 as the 'masti'ice cream, is targeted solely at children.All Max products are fortified with extra vitamins. Max Cups and Max 123 haveVitamin A, Max Orange and Max Joos have real fruit juices and Vitamin C (a singleMax Orange candy offers a child 15% of his daily requirement of Vitamin C).Max says, 'Masti kar Befikar'and encourages all kids to go ahead and have lots of


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fun!

Max has recently been extended as confectioneries (candies) - MaxMasti,MaxMagik and ChocoMax.

yCornetto Soft

Kwality Wall's Cornetto Soft

In 2002, Kwality Walls is introducing a host of unique product innovations under anew brand called Cornetto Soft. The new range includes a Super Cone (a biggersoft cone- Vanilla and other flavours like chocolate, strawberry etc), StrawberrySundae Cup (Creamy tasty vanilla topped with rich strawberry sauce), ChocolateSundae Cup (Creamy tasty Vanilla topped with thick chocolate sauce), RippleCones (Creamy tasty vanilla softy with strawberry or mango ripples) and NuttyDelight (Creamy tasty Vanilla topped with thick chocolate sauce and nuts, served in acup.). The price ranges from Rs.7/- for a Super cone to Rs. 20/- for a Nutty Delight.

At a Kwality Walls kiosk, the consumer will experience innovative promotions andthemes that will take place regularly at and around the outlet kiosk, it will be seen as acool place to hang out and a great place to eat out.

Kwality Wall's has a perfect blend of affordability, hygiene and taste that will winover the consumer.Kwality Walls Softies are untouched by human hands. The first hand that touches theproduct is the consumer's. Kwality Wall's uses a pre-mixed liquid produced andsealed at the factory and is untouched by the operator at the outlet. The advancedTamper Proof technology & the sophisticated softy dispensers make sure that hygieneis given the highest priority. The ingredients are pasteurized and homogenized, whichensure true quality & consistency of the end product.

As a result Kwality Walls is the only one offering a superior and completely hygienicproduct.Kwality Wall's aims to ensure that the consumer gets a world class product deliveredto meet local taste requirement under strict Unilever standards of hygiene and at agreat price!

yKwality Walls Black Currant SundaeIrresistible internationalflavour now available in India

The exotic dessert, Kwality Walls Black Currant Sundae, launched in India, has amouth-watering black currant sauce and creamy vanilla. The Black Currant sauce hasbeen specially formulated by Kwality Walls, to offer a truly delectable dessert for itsconsumers, that leaves them yearning for more.Black currants are grown in Europe, USA and Chile, rich in vitamin C and minerals,they are used to make exotic jellies, jams, drinks and sauces the world over.There is an even more interesting history to sundaes. In the 1980s, when thisdelightful dish was first put together in the US, it was against the law to sell soda andconsequently, ice-cream sodas on Sundays. So the trend of serving ice cream with


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sauces and toppings instead of soda began. Soon, ice-cream sundaes became sopopular that people opted for this dessert on weekdays as well.

Kwality Walls Sundaes were launched in 2001 in India in Chocolate, Strawberry

and Mango flavors. These products were a phenomenal success and are now beingtaken to the next level with an exotic Black Currant sauce and Black Currant DryFruit pieces.In a day and age, when families hardly find time to spend together, Kwality Wallssees its Sundaes as an offering, which helps bring families together for fun andenjoyment. 10 p.m. would henceforth stand forKwality Walls Sundae time!

2. BeveragesBrooke Bond 3 Roses - has colour, taste & strength

Brooke Bond 3 Roses, a premium dust brand was launched in 1978 in the heartland ofcoffee drinking households in southern India. The brand can rightfully claim credit for

creating a tea drinking habit amongst these households through its highly successfulpositioning as the only tea with a perfect combination of colour, taste and strength -the 3 most important attributes in a cup of tea. Not surprisingly, this wonderful cup oftea came to be enjoyed by a cross section of consumers giving it undisputed marketleadership.Since the turn of the millennium, the brand has taken a further leap by adding a highlymotivating emotional benefit - The Perfect tea for Perfect moments - amongstcouples. The first step towards appropriation of this emotional mind-space startedwith a highly successful Perfect Couple search campaign, which saw significantstrengthening of affinity and disposition towards the brand. This is being furthered bya new theme - triggering an even stronger emotive link with the consumer.

yBrooke Bond Red Label - nation's cup of tea

Brooke Bond Red Label Tea was launched in the year 1903, which makes it one ofthe oldest brand of tea in the country. It also has the distinction of being the largestbrand of tea in India and has a truly national presence. For years, Red Label has stoodfor good quality tea and it can be easily called as one of India's favourite tea brands.The brand was relaunched in the year 2000 with a new product formulation, whereinlong Assam orthodox tea leaves were added to the base CTC tea to deliver enhancedtaste. These are referred to as 'Assam Super Tasters' in the brand's communication.The new campaign highlights the irresistible taste of the new Red Label Tea through

executions that revolve around a very catchy base line 'Don't Mind - Ek Cup Aur' -Ready for another cup!

yBrooke Bond A1 - 'kadak chai

Brooke Bond A1 was launched in the year 1995 as HUL's offering in the discountsegment of tea. It is targeted at converting consumers of loose tea and local packet teaplayers.


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Brooke Bond A1 has region specific blend formulations to meet the needs of theconsumers in different regions of India.The core proposition of the brand is 'Strength'. The benefit to the consumer is 'Strongtea that charges my confidence'.Brooke Bond A1 Power, a variant of Brooke Bond A1, is fortified with Vitamins. It

has initially been launched in Karnataka in March 2001.Brooke Bond A1 Power, similar to Brooke Bond A1, has the consumer offering of"Strength" but has Vitamins as a reason for the consumers to believe in theproposition. The choice of vitamins has largely been based on evidence of deficiencyamong the target group.Targeted at lower middle class consumers, this brand variant is expected to gain fromlocal players and upgrade Mother brand Brooke Bond A1.52

yBrooke Bond Taj Mahal Tea - 'Wah Taj!'

Taj Mahal Tea was launched in 1966 as a premium CTC leaf brand. Over the years,

the brand has fulfilled its promise of India's best tea. The tea is carefully chosen froma thousand teas from the best gardens of Assam to give it an exquisite aroma andtaste. It is endorsed by Ustaad Zakir Hussain who personifies the brand in all respects.The brand has constantly led by innovation, whether it be the first tea bag in thecountry in 1979 or the patented 'vacuum pack', which keeps the great quality intact.No wonder tea lovers across the country start the day by saying 'Wah Taj!'yLipton Taaza - the fresh cup of tea

Lipton Taaza was launched in 1988. The strategy for the launch was to convert loosetea users into packet tea. The brand was launched in a poly pouch format designed topreserve the freshness of tea. The name Taaza signified 'fresh tea'. The core benefit

was refreshment. Taaza pioneered the format of pouches on a national scale.Lipton Taaza is one of the largest tea brands in the country, specially in the Hindi belt.The core proposition of the brand now is 'Fresh Taaza tea refreshes like noother teacan.'The brand commercials in the past have shown fresh tea being selected fromselect gardens and this in turn leading to amazing refreshment.

yLipton Yellow Label- the global cuppa

Lipton Yellow Label is Unilever's global tea brand and sells in many countries acrossthe world. It has pioneered the growth of tea through non-traditional formats like TeaBags and more recently Ice Tea.

Lipton Yellow Label is a brand for young minded people and offers an option to tealovers to enjoy their favourite drink in an exciting and refreshing way.

yBrooke Bond Bru- the instant coffee

Brooke Bond Bru, launched in 1969, created history in the first year of launch bygrowing to a record market share of 21%. Ever since, it has grown from strength tostrength and is now the single largest brand of Instant Coffee in India, with a


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OILS AND FATS

yDALDA

Dalda -for healthy cooking

Launched in 1937, Dalda Vanaspati has been the Indian housewife's trusted

companion for tasty, healthy cooking. Considered as an embodiment of mother's love,Dalda has always been associated with purity, quality and trustworthiness.In 2000, Hindustan unilever launched Dalda Activ, a healthier version of Vanaspati,primarily because it contains twice the amount of healthy fat (poly unsaturated fats)and also actively reduces the unhealthy fat (saturated and trans fat). As a result, food55

cooked in Dalda Activ does not congeal on cooking and, hence, no layer of fat isformed.The product was developed through the process of interesterification, a fatmodification procedure, which changes the melting and crystallisation properties ofthe fat. The process has been perfected for Indian conditions at Hindustan unilever'sFoods Innovation Centre.In 2001, Hindustan unilever launched Dalda Classic, which with its butter aroma istargeted at consumers in the South.


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FINANCIAL NEWS

HUL Net Profit up by 20% in 2004 Total Dividend of Rs 3 per Re 1 shareMumbai, January 29, 2005Hindustan unilever Limited (HUL) Net Profit for 2004 at Rs 2634 crores grew by18.6% over 2003. Net Sales for the year at Rs.9955 crores grew by 3.7% led by a6.5% growth in Power Brands. Profit Before Tax (PBT) at Rs.2197 crores, increasedby 13.1% while Profit After Tax (PAT) was Rs.1716 crores, a growth of 11.3%.In December quarter 2004, sales grew by 3.7% to Rs.2634 crores with Power Brandsgrowing twice as high at 6.1%. PBT at Rs.690 crores grew by 13.1%, while PAT atRs.542 crores increased by 11.4%. Net Profit was Rs 466.51 crores after absorbing anexceptional item charge of Rs.76.33 crores.Operating Margin for the year improved further by 1.3 percentage points to 16.6%.

Earnings Per Share (EPS) for the year improved to Rs.7.98 from Rs.7.46 in 2001. TheBoard has recommended a Final Dividend of Rs.3.00 for the year. The total dividend,including Interim Dividend of Rs.2.50 is Rs.5.50 compared with Rs.5.00 paid lastyear. This includes distribution from the exceptional income from certain divestments.On a comparable basis, after netting off the impact of businesses transferred in andout, sales growth works out to 5.8% for the quarter and 5% for the year. PAT growthamounts to 24% for the quarter and 21% for the year.Commenting on the performance, Mr.M.S.Banga, Chairman of the Company said, In2002, we vigorously pursued our strategy of focussing on growing our Power Brandsin the face of intense competition, a depressed economy and declining market. Thisstrategy has accelerated our FMCG topline growth to 7% in the second half comparedwith 3% in the first half. In fact, our Power Brands have grown by 9% in the secondhalf led by those in Home and Personal Care group by 12%.Our emphasis on enhancing Foods profitability has doubled profit through a 5percentage point increase in margins. We have also divested our holding eitherpartially or fully in several non-FMCG categories and reinvested some of this incomeinto strengthening the Foods portfolio".58

Talking about the dividend, he added, "Our dividend policy is geared towardsrewarding shareholders. This year the dividend also includes distribution from theexceptional income arising from the divestment of some of our non-FMCGbusinesses".

ReviewofBusinesses

Group sales (comprising HUL and its subsidiaries) declines by 5.4% for the year.Sales of FMCG products grew by 7% in the quarter and 5% in the year.Home and Personal Care grew by 3.4% led by a 9% growth in its Power Brands.Clinic and Lux led a 14.7% growth in the Hair category, while Pepsodent and Close-Up took toothpaste growth to 6% despite aggressive competition. Fair & Lovely andPonds grew the Skin business by 18.6%. Despite strong growth by Breeze and


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reversal of the Lifebuoy decline, overall Personal Wash sales were marginally lower.Wheel grew by 18% making it the number one brand in laundry and leading a totalFabric Wash growth of 7%.The focus on profitability in the Foods portfolio led to an improvement of 8.5percentage points in Beverages and by 1 percentage point in Foods businesses. The

flagship brand, Taj Mahal recorded a sales growth of 6% while overall tea declined ina declining market. Coffee, led by Bru, grew by 15%. Food sales were up 14% with a18% rise in Oils and Fats. Modern Foods grew by an impressive 66%. Icecream salesdeclined by 4%. Group Exports amounted to Rs 1829 crores, a marginal decline of5%, mainly due to rationalisation in Traded Exports.

Other Income

Other income for the year rose by 11.6% from Rs.382 crores to Rs.385 crores.Proactive management of surplus funds enabled this despite a sharp fall in the interestrates.

Business Restructuring

The results for the year include a business restructuring cost of Rs.48 crores comparedto Rs.109 crores in the previous year and Rs.14 crores for the December quartercompared to Rs.27 crores in the corresponding period.

Exceptional Items

The exceptional income of Rs.100 crores for the year include:

yProfit on divestment of Quest and Animal Feeds business: Rs.143 crores

yOne off reduction in tax liability arising from amalgamation of IBL: Rs.28crores

yProvision for fixed asset write-off and estimated other related costs in respectof Thermometer business: Rs.11 crores (net of deferred tax: Rs.7 crores)In addition a charge of Rs.64 crores towards exceptional items in December quartercomprising:

yProfit on disposal of Nickel catalyst and Adhesives business: Rs.17 croresyProvision for fixed asset write-off in respect of the Culinary Productsbusiness: Rs.19 crores (net of deferred tax: Rs.12 crores)

yProvision for fixed asset write-off and estimated other related costs in respect

of Icecream business: Rs.43 crores (net of deferred tax: Rs.28 crores)yProvision for additional liability in respect of employees retirement benefitsnecessitated due to fall in interest rate: Rs.63 crores (net of deferred tax: Rs.41crores)


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Bonus Debentures

The shareholders of the Company at the Extraordinary General Meeting held on 12thDecember 2001 have approved the restructuring of General Reserves by issue ofBonus Debentures in the ratio of 1 Bonus Debenture of Rs.6 for every share of Re.1

held in HUL and payment of special dividend of Rs. 2.76 per share. These debentureswould be redeemed on the second and third anniversary following the issue andwould carry a 9% interest. The proposal is now pending approval from theHonourable High Court of Bombay.


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PRESS RELEASES

India can create 70 million new jobs and add 2% annually to GDP growth byglobal sourcing of manufactured exports, says M.S. Banga

HUL gearing up for billion-dollarsourcing business out of IndiaMUMBAI, June 26, 2002: India can double its exports growth rate to 20%, adding2% to GDP growth rate annually and creating 70 million new jobs in the privateorganised sector over 10 years, if it leverages its potential to become a preferredsourcing centre for manufactured exports, Mr. M.S. Banga, Chairman of Hindustanunilever Limited (HUL), said here today.Noting that India has already demonstrated the potential to become a global sourcingcentre for services, Mr. Banga highlighted, However, India cannot rely on services

alone to drive exports. Manufacturing constitutes 72% of global trade worth US$ 6trillion. For exports to be a major platform for growth, it is imperative that we focuson and drive manufactured exports.Mr. Banga said that HUL, already one of Indias largest exporters, has decided tomake sourcing an integral part of the business strategy. Sourcing already accountsfor about half of our total exports of Rs.1500 crore. HULs vision is to build a billiondollarsourcing business out of India, he said. Mr. Banga was addressing HULsannual general meeting.

Five initiatives: He said that India must move quickly to pre-empt other countries in

the race for global sourcing, and suggested five immediate initiatives, thatGovernment and Industry will have to take. This will help overcome Indiasdisadvantages, in cost, image and process competitiveness, vis--vis other low-costnations, like China, Korea, Thailand or Mexico, which are already ahead in the race tobecome global sourcing centres in manufactured exports.The five initiatives are: identifying, nurturing and promoting 2 or 3 Star sourcingsectors; creating Virtual Special Economic Zones; completely privatising Mumbaiand Chennai ports; driving industry productivity and process excellence through theTotal Process Management (TPM) tool; and an enabling fiscal and regulatory Regime.Star Sourcing Sectors: Mr. Banga said that, within the countrys portfolio,Pharmaceuticals, FMCG and Processed Marine products have the potential to becomeStar sourcing sectors in the immediate term. There is a rationale for the choice of

these sectors. The US FDA requirements are stringent for pharma. Consumerinvolvement in food items is high. FMCG items are items of mass consumption. If weare able to successfully create a niche for ourselves in these sectors, it will give theMade in India brand for manufactured exports a big boost, which we can thenextend to other sectors, he said.To nurture the Star sourcing sectors, he called for the establishment of aquasigovernment


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Apex Sourcing Body,

with strong linkages to both the Commerce andFinance ministries, and independently managed by professionals deputed from

Industry. A good role model is NASSCOM, which has played a crucial role inpositioning India as a global IT services sourcing base. Manufactured goods sourcingtoo will gain from a similar organisation, whose focus will be on building the IndiaInc. brand through some key activities - attracting lighthouse global companies toestablish manufacturing bases in India; continuously highlighting legal and regulatorychanges required by the sector; and finally, being a knowledge repository forinformation and research on the sourcing potential of India, he said.

Virtual Special Economic Zones:

Welcoming the Special Economic Zone (SEZ)

legislation, he pointed out that to enjoy the benefits of this legislation, a companyneeds to be physically located within the SEZ. This would require an exporter tospend resources in relocating facilities. This might not be feasible for many industries,which need to be located near the source of raw materials (e.g., steel) or skilled labourpools (e.g., diamonds). Secondly, an SEZ will take two to three years to beginfunctioning with the full infrastructure in place.Therefore as an interim action, he suggested the establishment of Virtual SEZs(VSEZs). A VSEZ is similar in concept to the current EOUs. Any unit that exportsmore than 50% of its production in a block of three years, wherever it is located, willbe a deemed VSEZ, enjoying all the benefits available to an SEZ, including fiscaladvantages and freedom from administrative procedures. To begin with, the VSEZfacility could be extended to those companies with an export of Rs.100 crore perannum, which would kickstart sourcing without waiting till the SEZs are fullyestablished.

Privatisation of Mumbai & Chennai ports:

In the light of the encouragingexperience of privatising three terminals in Chennai and Mumbai ports, Mr. Banga63

called for the complete privatisation of these two ports. This will not only enhanceefficiencies and bring down costs, but also earn Rs.2000 crore, in addition to theannual revenue streams. Besides establishing world-class processes and systems in at

least two ports, this will serve as a model to rapidly privatise other ports as well.

Productivity & process excellence:

Highlighting the need for industry to develop anobsessive commitment to productivity, he suggested the adoption of Total ProcessManagement (TPM) as a tool. A TPM factory is unbelievably superior to a non-TPMone I have seen this for myself. On an average, HUL has doubled productivity


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through TPM and, in some cases, taken it up to three times the original levels. Wehave now adopted TPM in our offices and sales processes as well, he recounted. Hesuggested TPM training to be included in ITI and Engineering education, which willprovide more than 200,000 TPM-trained personnel annually to industry. He alsoproposed a JIPM (Japanese Institute of Plant Management) certification programme

for exporters along the lines of SEI-CMM for IT services companies, which will addconsiderably to the image of Indias sourcing.

Fiscal & regulatory regime:

Mr. Banga pointed out that the approach to theregulatory regime for exports should be such that it actively enables exports as agrowth driver. He has suggested Comprehensive VAT for exports and Simplificationof Transfer Pricing rules.Pointing out that 140 out of 147 countries in the WTO already have ComprehensiveVAT, he strongly suggested immediate introduction of Comprehensive VAT for the

exports sector, which would also provide useful learnings for implementationsubsequently in the domestic sector. On transfer pricing, he said that price fixation ininternational markets is subject to many variables, all of which may not be commonacross firms, industries or, indeed, across time. Therefore, transfer pricing rules mustbe less formulaic. A simple solution is to increase the margin for variance from 5 to15 %, and simplify the administrative and documentation procedures. In order tolearn, the simplified regime could first be implemented for imports, and then extendedto cover exports.Mr. Banga concluded, India must move quickly to pre-empt other countries in therace for global sourcing. Government and Industry must work together to dramatically64

improve India's Cost, Image and Process competitiveness. The time is right for us tomove Exports to the top of the economic agenda and make it a national priority.

Kwality Wall's makes its consumers 'Ek Din Ka Raja'

Largest consumer promotion ever by any ice cream brand!New Delhi, March 14, 2002

:Kwality Wall's, the market leader in India, has todayannounced the launch of its most exciting consumer promotion ever. This promotion,called 'Ek Din Ka Raja'is the biggest consumer promotion by any ice cream brandacross the country. The 'Ek Din Ka Raja'promo entitles 10 lucky consumers to spendRs.10 lakhs in One Day's shopping with their family in Mumbai! They can choose to

spend on consumer goods such as cars, home appliances, furnishings, garments, etc. -but within 24 hours!This 'dream-come-true' offer for the ice cream lovers comes at very affordable prices.

All that one needs to do is buy Kwality Wall's range of products - every pack has acertain number of points on it. The consumer needs to collect wrappers / lids upto 150points to be eligible to participate in the 'Ek Din Ka Raja'promo. On collection ofthe same, they need to go to a redemption centre where they will be given a scratchcard. (Call centres have been set up at each of the major cities, which will direct


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consumers to their nearest redemption centres as well as answer all their queries.)Upon scratching the cards, 10 consumers can win the mega prize of 10 lacs and shoptill they drop with their families in Mumbai. There are over one million assured prizesfor all who get a scratch card - important to note that every scratch card has aguaranteed prize (there are no try agains!)which is not very commonplace for such

kind of promotions. The other prizes include microwave ovens, walkmans, goldplated watches, jigsaw puzzles, video games, fun books, zoomerangs etc.The mega prize of EDKR entitles the consumer (with his family - upto 4 members) tobe flown into Mumbai with all hospitality taken care of in royal style! They will begiven a chauffeur driven car, two riders and a day to go on their dream-shoppingspree. The winners will get to shop at five popular categories where we areassociating with the best of brands in each category - BPL, Hyundai, Tanishq,Westside, and Wipro.

"The Ek Din Ka Raja promotion is an effort by Kwality Wall's to connect toourconsumers in a more personal way - we have given them offerings that they love -

and now we are giving them something that allfamilies love doing together -shopping. The time limitofone day makes this promotion very exciting anddifferentfrom allothers. This promo, we are confident, will go a long way instrengthening the perception ofKwality Wall's as being a brand that emotestogetherness, fun, sharing and laughter,"says Mr J H Mehta, Executive Director

- Ice Creams, Hindustan unilever Limited.The 'Ek Din Ka Raja'consumer promotion will be supported extensively bymultimedia communication tools - in what we believe is going to be one of thebiggest and certainly most innovative media support for any consumer promotionseen before in the country. Apart from this we have an exclusive tie-up with Sony TVand Indiatimes.com As part of these tie-ups, the consumers will also get to playEDKR even if they have missed out while "scratching". We will also be reaching over20 lac consumers directly as part of our extensive consumer contact programme. Inshort, ensuring that the excitement of the promotion reaches one and all across thecountry and becomes the new mantra for families wanting to shop together! After all -as someone said

'The family that shops together - stays together!'About Kwality Wall's

Kwality Wall's, a brand of Hindustan Unilever Ltd, currently commands a

marketshare of more than 50% of the organised Indian ice-cream sector. KwalityWall's has combined the state-of-the-art technical know-how of Unilever-- the globalleader in ice cream products--with a deep insight of the Indian market, to deliver arange of superior quality products under its international brands. It has recentlyrevamped its complete brand portfolio and brand proposition in line with HUL'sBrand focus exercise. The essence is captured in the new baseline "Ho jaaye Dil kaConnection..."a proposition which captures the fun of bonding between families andfriends.


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And don'tforget, the family that eats together, shops together.Kwality Wall's launches Super CornettoExoticflavours and a core ofsauce in delicious new conesBangalore, March 2002:

Kwality Wall's is all set to take the Indian ice cream marketby storm with the launch of Super Cornetto. To the existing range of Chocolate,Butterscotch and Strawberry cornetto, the Super Cornetto range comes in two enticing

combinations - Jamaican Magic and Hawaiian Bliss. The product has a core ofluscious sauce that runs right through the cone, and it has beautiful rosette decorationon the top. Once again Kwality Wall's has introduced an exceedingly innovativeproduct into the ice cream market.Jamaican Magic is an exotic combination of Rum & Raisin + Coffee flavours with acore of chocolate sauce cone topped with nuts. Hawaiian Bliss is a deliciouscombination of Blackcurrant and Strawberry flavours with a strawberry sauce coreand cherry toppings. Both the Super Cornettos which are much bigger that the currentproduct are priced at Rs 30/-.Cornetto has for many years been considered to be the icon of ice cream industry andthe best cone not only in India, but abroad as well. It stands for romance andtogetherness and appeals to young adults. It is now extended into an exotic,international offering Super Cornetto - which speaks for your heart better than anywords can.Says Mr J H Mehta, Executive Director, Ice-cream Division, HUL,

"With SuperCornetto, we are giving the consumer a never-before experience in a cone withdelicious flavours and a sauce flowing right through the cone. The Indian icecream market, we believe, will be taken by storm by the Super Cornetto range andthis will soon become a benchmark in pre-packed cones."

The launch of the new Super Cornetto range is supported by a new televisioncommercial as well as outstanding outdoors and a press campaign. The television ad,also features the new theme music for Kwality Wall's which is truly excellent. This adgives you that warm feeling inside and is likely to be remembered as one of the alltime favourite ads for 2002.Hindustan unilever Limited's (HUL) new businesses have made robust and steadyprogress, all posting profitable growth. Lever Ayush, the Ayurvedic range of personal

care products, has gone national.HUL launched Lever Ayush in May 2002. It is for the first time that rigorous testingprocedures of the pharmaceutical industry have been applied to Ayurvedic products.

Mumbai, October 09th 2002

Pepsodent, Hindustan Unilever Ltd's leading oral care brand, todayannounced the launch of Pepsodent Dental Insurance, a first of its kind


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HUL remains the largest spender in terms of total outlay

Hindustan unilever retains its position as the largest spender in the sector with itsannual advertisement expenditure in 2002 at Rs7.2bn. Are you surprised at the

figure?. Dont be. Just go back to your television set and count the HUL product adsVs other company product ads tonight. On an average if you see 10 ads, you will findthat atleast 5 out these are of HUL products.

HUL jacks up advertising spend

Advertising and sales promotion expenditure of the fast moving consumer goods giant(FMCG) Hindustan unileversoared to a record Rs 823.82 crore during the yearended December 2002.In the previous fiscal, the company had spent Rs 696.58 crore. The spending onadvertisement sales promotion, which is up 18.27 per cent in 2002, is considered to be

on the high side as FMCG companies are facing acute demand recession. The fiercecompetition among all personal care companies, particularly to maintain marketshares in shampoo, toothpaste, detergent bath-soap and hair-dye, has compelled HULto go for large ad spending.

In 2004, the spending on adverti

mohit market ting term paper

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