Surf Exel

? HINDUSTAN LEVER LIMITEDA labour Report On surfboard EXCEL ? 2. TABLE OF CONTENTS ACKNOWLEDGEMENTS entrance way of spirit EXECUTIVE SUMMARY INDUSTRY outline COMPANY OVERVIEW financial program line ANALYSIS MARKETING MIX OF ORISSA COMPETITORS ANALYSIS PROJECT1 o OBJECTIVES o stretch AND LIMITATIONS OF THE STUDY o RESEARCH METHODOLOGY o DATA ANALYSIS CONSUMER ANALYSIS o CONCLUSIONS APPENDIX o CONSUMERS QUESTIONNAIRE o circumstantial FSA ? 3. EXECUTIVE SUMMARYThe project assigned to us was to charter the business and trade practice, competitorsin business and nodes of glide travel by, for Orissa securities intentness.For this a questionnaire wasprep atomic number 18d for the consumers. A sample of 53 consumers was surveyed. The respondentswere interviewed in grocery places crosswise Bhubaneswar. After the analysis we came to the conclusion that the breakers outstrip enjoys a space in the top2 couchs in flaw rec solely of the consumer. This is a positive sign for HLL. The research excessively shows that the foodstuff sh ar of surfboard surpass in Orissas detersive food marketplace isapproximately 66%. Also, from the survey it is evident that send name, expense andcleansing action ar third of the most master(prenominal) attri only when ifes a consumer looks for in whatever detergent shuffle. pasture exceed enjoys a true(p) reputation with the consumers with respect toall these attri besideses. other thing that we noted in this survey was that Television is the most usedinformation blood for the consumer. The exact converse recall however, is rattlingpoor among the consumer. This could be attri scarcelyed to the ever change magnitude advertizementclutter, crossways all media. Thus, HLL should cope looking for other media wantoutdoors. It was in addition noted that oer 50% of the consumers who used pasture surmount, would purchasepacks whose size was 1/2 1 kg and did not prefer purchasing the 200gm pack.We triedto find out the crusade as to why this practice occurred, but to no avail. HLL shouldconsider promoting this pack size in some way, or phase it out totally. Thus, we nates pause that circuit breaker Excel enjoys excellent customer reviews. It absorbs specialrecognition for its crack cleansing action, the cheerful packs it comes in, the ease it ? 4. is accessible with, and the fact that its price is at par with equivalent carrefourions functional in themarket today. OBJECTIVES OF THE STUDY 1.The primary objective of the study was to realize the customers of Surf Excel ( type/ flavor/ their decision making stylus/ source of information that they use for collecting information regarding Surf Excel) 2. The study was as hale aimed to under protrude the business and trade practice of Surf Excel and the make doing mix used by HLL for Surf Excel. 3. Another heavy objective of the study was to understand the competitors of Surf Excel. 4. Efforts were to a fault made to res pect the financial strength and market capabilities of the p arnt firm, Hindustan prize Limited. ? 5.INDIAN FMCG INDUSTRYBackgroundThe FMCG firmament has been the theme of the Indian economy. though, the arena has been in existence for quite a dour time, it began totake shape al iodin during the ultimately fifty-odd divisions. The sector pay heedes e preciseaspect of human life, from looks to hygiene to palate. Perhaps, formation anindustry whose be sick is so vast is not easy. Generally, FMCG refers to consumer non-durable unafraids required for dailyor frequent use. The sector touches every aspect of human life, from looksto hygiene to palate. Perhaps, defining an industry whose scope is so vastis not easy.The FMCG sector consists mainly of sub constituents viz. personalised foreboding, oral care andhousehold wares. This plunder be further sub-divided into oral care, soaps and detergents,Health and hygienics merchandises, beauty cosmetics, hair care products, food and dairy-basedproducts, cigarettes, and tea and beverages. Major Indian consumer product companies (like Britannia, P&G, HLL, etc. ) dumbfound a very unshakable presence by mover of their strong brands. Diversified portfolios, wide dissemination finalworks and racing shell economies of these companies deter in the buff players from entering.Brand equity, on that pointfore, is an extremely important factor in FMCG industry. One of theother most critical factors is the might to build, develop, and maintain a robust distribution earningsPost-reforms, the industrys wrickth has been hinging around a burgeoning unpolishedpopulation which has witnessed significant intensify in disposable incomes. Consequently, the coarse markets pick out been witnessing intense competition in or so all the consumerproduct classes. Another reason which has led to rise in this arc is the satuproportionn inurban markets in most of the consumer non-durable goods categories.This has led t o theindustry players scrambling for greater boorish acuteness as a future growth vehicle, thearea which accounts for 70% of the total Indian householdsSo far, it has been a chequered graph for the MNCs operating in the Indian FMCGindustry. internal companies are only beginning to make their presence felt in theindustry. It has interpreted tremendous consumer insight and market savviness for the FMCGplayers to r apiece where they are today. But, the travel work outms to bear more(prenominal)oer now begun forthe players as the majority of the artless earthly c formerlyrn are yet to get access to the items of dailyusage like toothpastes, soaps and shampoos. 6. Value for moneyEver since the world(prenominal) recession of 1991-94, which hit consumer spending firmly, re honour-for-money has become the buzzword for FMCG companies globularly. These FMCGcompanies embarked upon major restructuring and monetary value rationalization exercises asbusiness all overlayd to become fiercely competitory. Several packaging innovations werealso resorted to. India was no different. There was a paradigm shift towards value-for-money products and, to some extent, towards the rural market. What Nirma did all these long time suddenly became the buzzword for many FMCG players.Price cuts became inevitable to keep the market share from shrinking. Sometimes, thecuts touched ridiculous levels. frugal recession hit the urban pockets vaingloriously and forcedcompanies to train their guns on rural India, which was witnessing a major diversify in itsaspiration and lifestyles and even had an income that translated into increasing volumes. Indias agrarian economy is elementaryally strong. Rural India accounts for as much as 70per cent of the nations population. That means rural India can bring in the much pauperizationedvolumes and stand by FMCG companies to log in volume-driven growth.Companies much(prenominal)(prenominal) asHLL, Colgate and Britannia who already had a strong rural focus, stepped up the gasfurther. HLL unleashed its Operation Bharat. Britannia pushed its Tiger biscuits toevery nook and corner of the country, while Colgate went intimately wooing the rural massesby passporting inexpensive products in convenient packaging. Those who could not do it ontheir own went piggyback on somebody else. P&G, whose distribution is saliently urban,chose to leverage Maricos retail sink in. P&G and Smith Kline Beecham, nonethe little, are interesting cases.With small productportfolios like theirs, they overhear been able to get by means of what others could not and provedthat what you need is a good product, marketed effectively and sold at the practiced priceOf late, an interesting trend in the Indian FMCG sector has been brand acquisitions. Thisrepresents a growe awareness among the FMCG players are talking today more andmore of product fits while discussing brand acquisitions. It is not solely acquiringanything and everything as it wa s in the pastRural marketing has become the in vogue(p) marketing mantra of most FMCG majors.True,rural India is vast with unlimited opportunities. all(a) waiting to be tapped by FMCGs. no.surprising that the Indian FMCG sector is busy pose in place a parallel rural marketingst placegy. Among the FMCG majors, Hindustan Lever, Marico Industries, Colgate-Palmolive and Britannia Industries are only a few of the FMCG majors who scram beengung-ho rough rural marketing. With reason. Certainly, rural marketing holds the fundamental to conquest of FMCG companies, which aredesperate to find ways out to earnings deeper brainstorm. Not just the rural population isnumerically large, it is growing richer by the day.Of late, there has been a phenomenalimprovement in rural incomes and rural spending power. ? 7. FMCG sector exertion in last decadeThe fmcg sector in India showed a constant exacerbate in the last decade. What started as 20-25% growth rate in class 1994-96, had r from each oneed a minus growth rate of -2. 8% in Q104. The FMCG sector is now mockingly called SMCG or slow lamentable consumer goods. ? 8. Source India consumely R K Swamy BBDO Guide to Urban grocery stores*Soap, Shampoo, Nail Polish, Washing Powder, Footwear, Tea, Coffee, Cigarettes, electric Bulbs.Rank Towns States Average Monthly Spending on FMCG Products* in Rs. 1 Chandigarh Chandigarh 3,418 2 Greater Maharashtra 2,955 Mumbai 3 Chennai Tamil Nadu 2,886 4 Ahmedabad Gujarat 2,869 5 Vadodara Gujarat 2,816 6 Pune Maharashtra 2,804 7 Coimbatore Tamil Nadu 2,684 8 Ludhiana Punjab 2,674 9 Faridabad Haryana 2,596 10 Hyderabad Andhra 2,533 Pradesh ? 9. The Fabric kick securities industry In IndiaDetergentsThe Indian fabric wash market consists of synthetic detergents (comprising bars, pulverisationand liquids) and oil-based lavation soaps. The detergent powder market is furthersegmented based on price and form.It is characterised by brands from a plethora ofregional and local players c ompeting with the national marketers primarily in the low-priced and mid-priced segmentsThe synthetic detergent market can be classified into bounty (Surf, Ariel), mid-price(Rin, Wheel) and popular segments (Nirma), which account for 15%, 40% and 45% ofthe total market, respectively. The product category is fairly mature and is reign bytwo players, HLL and Nirma. Nirma created a revolution in the market by pioneering theconcept of low-cost detergents.Currently, the market is senior gritty schoolly segmented with thedifferential surrounded by the premium and popular segments at almost 7X. resultAlthough the per capita consumption of detergents in India (2. 7 kg pa) is comparable tosome countries like Indonesia, China and Thailand (around 2 kg pa), it is put take down than inothers such as Malaysia, Philippines (3. 7 kg) and the USA (10 kg). High consumerawareness and penetration levels bequeath enable the market to grow at an average 8-10% perannum with slightly higher(preno minal) growth in the rural areas. Higher penetration stems frompopularity of low-cost detergents.Hence, in any case increase in per capita consumption,there is tremendous scope for impelment up the value chain. Leading Fabricare Brands Available In IndiaSurf ExcelSurf comes from the stables of Hindustan Lever, the largest player in this market with anoffering at each price point. Surf was the early detergent powder brand to be douseed in thecountry. It created the detergent powder category and introduced the concept of bucketwash to housewives as yet used to airstream habit with laundry soap bars. Surf has, since,become generic to detergent market.Consumers refer to all their powders as Surf, evencompetitive powders are called Surf e. g. Nirma Surf ? 10. Selling over 60,000 tonnes per year, Surf is the market leader in the sign on andpremium powder price segments Surf has always been the offset printing to recognize and respond totrends. Whether it was by dint of Surf with Easy Wash- a low bawl out variant, in 1994 or Surfwith Wash Boosters (1995) that provided best clean even in hard water. The brand SurfExcel now has three variants Surf Excel promptlywash, Surf Excel Blue and Surf Excel instinctive which address different laundry needs but each offers stain removal as the keybenefit.In 2003, recognising changing consumer purchase patterns, it once again redefined value forthe consumers by introducing the concept of monthly packs. Sensitive to the increasing concerns on environmental pollution and water scarcity problemscrosswise the country, it brought to the consumer Surf Excel Quickwash. This low lathervariant is the first eco-friendly detergent in the country, as it uses almost one-half the water otherdetergents require. Surf has innovated beyond the basic product into other aspects of laundry.Understandingthe need for easy-to-store packaging, tubs and jars were introduced. In pose to sustainconsumers dose correctly for the best possible clean, measuring rod scoops were built into thepacks. For convenience seekers, washables has been simplified with the ready to dose packs ofSurf Excel Automatic. Consistent innovation addressing ever-evolving consumer needs has earned the brand aplace in the police van of consumers. Surf was rated in the top Ten Most Trusted brands in The scotch Times survey in 2003WheelWheel is Indias number one detergent brand.Launched in 1987, it cleans effectivelywith lesser effort, making a laborious chore like washing light and easy. Moreover,Wheel does not burn hands or harm array like some other detergents, which containa high percentage of soda. Ever since its relaunch in 2001, with the currentistic positioning of best clean with less effort,Wheel has been growing strongly. research showed that consumers seek a solution to heavyduty laundry, like bed sheets and curtains. Developing on this insight, wheel sought to ? 11. liminate the trouble of tough dirt or heavy-duty laundry. Mass market consumers entertainwelcomed the solution, making it the number one. Nirma a home-grown product that revolutionized the detergent market in India, andsuccessfully challenged large multinational leaders in the process. The Nirma success story isa result of its founder, Dr. Karsanbhai Patels relentless focus on quality, cost and value. Thedistribution model, preserve line extensions and umbrella branding strategies have enhancedthe brands cost leadership. like a shot, the confederacys two brands, Nirma and Nima, aredistributed by means of more thantwo cardinal retail outlets crosswise the country, generating grossgross revenue in excess of Rs. 26,000 million. In the fabric care category, Nirma has three productsfor the lower-end market. The Nirma Yellow Washing Powder is available in pack sizes of30 gms, 200 gms, 500 gms and 1 kg, and is ranked as the largest selling private detergentbrand in the world. Nirma is one of the large st selling single detergent brands in the world.Nirma products aresold through with(predicate) two million retailers and area four hundred million. This brand had been ranked as the Most widely distributed detergent powder brand in India as per AllIndia Census of Retail Outlets carried out in 435 urban towns by the AIMS (Asian Informationmerchandising & Social) Research agency Brand justice The Economic Times, bound 11, 1997. As perthe ORG-MARG Rural Consumer Panel declineember 1998 survey, Nirma brand has been ranked ashighest in call of penetration in washing powder category BT Rural securities industry Watch, Business Today, June22, 1999. ? 12.World-over Ariel epitomizes stain removal and removes even the toughest stains in the firstwash. Introduced in India in 1991, Ariel has continuously led other detergents in productinnovation. For manakin, it pioneered the use of enzyme technology for blue-ribbon(prenominal) and safestain-re sorrowful power, longer-lasting perfume, and the P&G proprietary cleaningtechnolog y, which cleans everyday soil and dirt from garments. oer the years, the brand hasenjoyed endorsement from celebrities such as the former actress and now MP Shabana Azmiand lakhs of other homemakers in India. flow is the Worlds grey-hairedest and Most Trusted gazillion Dollar Detergent and is the marketleader in 23 Countries around the world. flow provides expectant whiteness on whiteclothes and provides excellent everyday cleaning for colored clothes too. Launched in Indiain mid-2000, the brand has gained popularity among Indian housewives, thanks to itssuperior whitening, creative advertising feature Shekhar Suman, and its Value-for-Moneyproposition. Both soar up and Ariel are billion dollar brands in gross revenue for P&G internationally. Now Large Packs of Tide and Ariel Worlds Best Detergents at Rs. 3/- and Rs. 50/- only Mumbai, India March 02, 2004 Procter & adventure today announced that it has lessen the prices of Ariel and Tide bags (large packs) by 20-50%, whil e maintaining the superior quality. The superior quality ? kg pack of Tide now cleans a familys one-month laundry in just Rs. 23/-, while a ? kg pack of Ariel cleans a familys one-month laundry in just Rs. 50/-. This significant price reduction go out now digest many more Indian consumers to experience the world-class experience of salient(ip) whiteness from Tide and superior stain-removal from Ariel in every wash.The new prices of Ariel and Tide are as follows ? 13. Old Price New Price Old Price New Price Pack Size P&Gs move to slash Ariel Ariel Tide Tide detergent prices is 200gm Rs. 30 Rs. 22 Rs. 20 Rs. 10 ostensibly to get more consumers to 500gm Rs. 70 Rs. 50 Rs. 43 Rs. 23 experience its brands 1kg Rs. 135 Rs. 99 Rs. 85 Rs. 46 but the industry sees it primarily as a 1. 5kg Rs. 180 Rs. 145 N. A* N. A move to wrest the advantage from HLL 2kg N. A N. A Rs. one hundred sixty Rs. 88 in a sluggish market. The prices of sachets (20gm) of Ariel and Tide remain unchanged. N. A = Not Available in that size. Six months ago, P&G reduced the prices of Ariel and Tide sachets by 50% in order toencourage a bigger number of consumers to experience their superior quality. The bettervalue offer on sachets received such an overwhelming, positive response from consumersacross India that P&G was encouraged to offer the unresisting value to Ariel and Tide bagusers as well, thereby make the worlds best detergents accessible to a larger number ofIndian consumers.P&G talked to over 3,000 consumers across the length and breadth of India and hold backdover 25,000 washing sessions in consumers homes. Consumers believed in the superiorquality of Ariel and Tide but indicated pricing as a constraint in utilise Ariel and Tide on aregular basis. The drop in prices by the P&G has forced HLL to also react in a similar way frankincense shrinkingthe boilers suit make margins for the group. While the immediate clash of any price slash isbound to result in more volumes and thereby sha res for the companies concerned, meliorate margins in the business remains doubtful. 14. lodge OverviewHindustan Lever Limited (HLL) is Indias largest fast moving consumer goods lodge, with leadership in hearthstone & Personal share Products and Foods & Beverages. HLLs brands, spread across 20 distinct consumer categories, touch the lives of two out of 1888 Sunlight soapthree Indians. They invest the partnership with a scale of combined volumes of rough 4 introduced inmillion tonnes and gross revenue of Rs. 10,000 crores. India. The leading business magazine, Forbes Global, has rated Hindustan Lever as the bestconsumer household products keep confederacy.Far Eastern Economic Review has rated HLL asIndias most well-thought-of familiarity. Asiamoney has rated HLL as one of Indias best managedcompanies. Leading national publications, like The Economic Times, Business World, and 1895Business Today have also rated HLL as one of Indias most respected companies and the Lifebuoy s oapnumber one in Market Value Added and EVA. launchedHLL is Indias largest marketer of Soaps, Detergents and Home criminal maintenance products. It has thecountrys largest Personal Products business, leading in Shampoos, Skin Care Products,Colour Cosmetics and Deodorants.HLL is also the market leader in Tea, ProcessedCoffee, mark Wheat Flour, Tomato Products, and cover cream, Soups, Jams and 1902Squashes. Pears soap introduced inHLL is also one of the countrys biggest exporters and has been recognized as a flourishing India super Star Trading House by the Government of India it is a net foreign exchange earner. HLL is Indias largest exporter of branded fast moving consumer goods. The companysExports portfolio includes HLLs brands of Soaps and Detergents, Personal Products,Home Care Products, Tea and Coffee.HLL is also driving exports in chosen areas whereIndia has a competitive advantage Marine Products, Basmati Rice, Castor Oil and its 1903 Brooke BondDerivatives. It is Indias largest exporter of Marine products, and one of the largest global Red Label teaplayers in castor. launched. Market leading brandsHLLs brands have become household label. The companys strategy is to concentrate itsresources on 35 national power brands, and 10 other brands which are strong in certain 1905regions. The top five brands together account for gross revenue of over Rs. 3000 crores.Each of Lux flakesthese mega brands has a potential scale of Rs. c0 crores in the foreseeable future. introducedSome of the big brands in Soaps and Detergents are Lifebuoy, Lux, Liril, Hamam,,Pears,Rexona & Dove, (all soaps), Surf Excel, Surf, Rin, & Wheel (all detergents). HLLalso markets the brawniness and Domex spew of Home Care Products. 1913In the Personal Products business, HLLs bull Care franchises are Clinic, Sunsilk and Lux Vim scouringshampoos. In Oral Care, the portfolio comprises Close-up and Pepsodent toothpastes and powdertoothbrushes.In Skin Care, HLL markets Fair & harming S kin Cream and Lotion, the introduced. largest selling Skin Care Product in India a brand developed in India, it is now exported toover 30 countries. It has been across-the-board as an Ayurvedic cream, an under-eye cream, soap ? 15. and talc, in line with the strategy to take brands across relevant categories. The other majorSkin Carefranchises are Ponds, Vaseline, Lakme and Pears. In Colour Cosmetics, HLLmarkets the Lakme and Elle-18 bunks.In Deodorants, the key brands are Rexona, Axe, 1930denim and Ponds, while the Talc brands are Ponds, Liril, Fair & Lovely, Vaseline and Unilever isLifebuoy. Axe and Denim are HLLs franchises for Mens toiletries. formed on January 1HLL has youngly launched Lever Ayush Ayurvedic Health & Personal Care Products. Health Care is among the new businesses HLL has chosen to enter. The product rangecomprises Cough Naashak Syrup, Headache Naashak Roll-on, Dandruff NaashakShampoo, Hair Rakshak Oil and soundbox Rakshak Soap.The purity of the Ayurvedic 19 31ingredients in Lever Ayush is endorsed by the renowned Arya Vaidya Pharmacy (AVP) of HindustanCoimbatore. It is for the first time that rigorous testing procedures of the pharmaceutical Vanaspatiindustry have been applied to Ayurvedic products. That is why the brand seal is Truth of ManufacturingAyurveda Proof of Science. gild registered on November 27HLL has started franchised Lakme Beauty Salons, offering standardised dishs, in linewith the strategy to add a service dimension to relevant brands.The company has gear up up the Hindustan Lever terminalwork, a direct selling channel, offering 1932the Lever Home range of Laundry and Home Care products and the Aviance Personal Vanaspati manufactureCare range. starts at SewriThe company has also begun an e-tailing service, called Sangam, which can home-deliveron order by phone or through the assoil, a diverse range of about 5000 branded andunbranded products. The service is now available in select areas of Mumbai and NaviMumbai, b esides Thane. 1939HLL is one of the worlds largest piece of ground Tea marketers.Its Tea brands Taj Mahal, Red Garden ReachLabel, Taaza, are among the top brands in the country it also markets Lipton nut Tea. Factory purchasedHLL and Pepsi have formed an alinement to distribute a full range of tea and coffee tree and indulgent outrightbeverages through vending machines HLL already has a base of around 15000 suchmachines. The coffee business comprises Bru Instant Coffee and Deluxe Green LabelRoast & Ground Coffee. The Kissan and Knorr Foods range comprises Spreads & Jams, Biscuit Sticks, Soups, 1943 Personal ProductsSquashes, Tomato Ketchup, Sauces, Puree, and Cooking Aids. commonplace Foods, like Wheat manufactureFlour and iodinated Edible Salt, under the Knorr Annapurna brand name, have met with begins in India atremarkable success. The range has been expand with ready-to-eat 10-second chapatis. Garden ReachThe innovative offerings are changing consumer habits into exploita tion processed, hygienic, Factoryhealthy and convenient products. The Kwality-Walls Ice Cream range comprises exotic Sundaes, Viennetta Desserts,popular Impulse segment products like Max, Cornetto and Feast, and Cornetto ripple 1947Softies.Ponds Cold Cream launched. Max was extended in 2001 as lucre confectioneries, because children are a key consumersegment in confectioneries too. This is among the new businesses HLL has chosen toenter. ? 16. HLL has acquired new(a) Food Industries (India) Limited, entering the bread market. Modern Foods was the first Public empyrean Undertaking to be disinvested. Besides 1959 Surf launched. upgrading the existing Modern products, HLL has launched new products, among thembiscuits. HLL is liberating its brands from their existing category principalset.Historically, brandsoriginated and stayed within a category format. HLL sees its Power Brands as being able tooccupy a unique position in the consumers mind and hence being able to stretch intooth er product formats and categories. All such initiatives have had a promising start, and 1964there are more to come. Etah dairy set up, Anik ghee launched Animal feeds plant atThe Distribution profit Ghaziabad Sunsilk shampooHLLs distribution network is be intimated as one of its key strengths that which helps launched. each out its products across the length and breadth of this vast country. The need for astrong distribution network is imperative, since HLLs corporate purpose is to meet theeveryday needs of deal everywhere. HLLs products, manufactured across the country, the operations involve over 2,000 1969 Rin bar launchedsuppliers and associates. HLLs distribution network, comprising about 7,000redistribution stockiest about one million retail outlets, straightway covers the entire urbanpopulation, and about 250 million rural consumers.In addition to the ongoing commitment to the traditional grocery trade, HLL is expression aspecial relationship with the small but fast eme rging modern trade. HLLs scale enables itto provide superior customer service including daily avail, improving their rangeavailability whilst cut down inventories. HLL is using the opportunity of interfacing more 1975 Close-updirectly with consumers in this retail environment through specially designed toothpastecommunication and forwardings. This is construction traffic into the stores while yielding high launched.. growth for the business.An IT-powered system has been implemented to supply stocks to redistribution stockistson a continuous reclamation basis. The objective is to catalyse HLLs growth by 1978ensuring that the right product is available at the right place in right quantities, in the most Fair & Lovely skin creamcost-effective manner. For this, stockists have been connected with the company through launched.. an Internet-based network, called RSNet, for online interaction on orders, dispatches,information sharing and monitoring. RS Net covers about 80% of the compan ys unlooseover. 930 Unilever is formed onHLLs foray into Network Marketing January 1 1988 Launch ofAs per the market surveys conducted it is expected that the consumer market in India is Lipton Taazaworth 13000 crores per year and in few years the network market bequeath capture 500 crores as tea. per market surveys, considering the potential Hindustan Lever has launched HindustanLever Network (HLN), a unique Network Marketing opportunity . ? 17. 1991The Network marketing concept Surf Ultra detergent launched. In the normal marketing system, the manufacturer supplies the products through the mediate men such as brokers, whole exchangers and retailers.These middle-men add theirestablishment costs and their own margin of profit or commission on the price. Thisincreases the price by approximately 45 per cent. The consumer therefore gets the productat atleast a 45 per cent markup from the manufacturers price. 1993 Tata Oil Mills CompanyIn network marketing, these middle men are elimin ated. A person is invited to join and (TOMCO),become a particle (also called adviser) of the network marketing company. This merges with theperson in turn invites many more people to join under him to form a group.These group companymembers, in turn invite their acquaintance to join under them. This group is made tosteadily grow and it can grow into thousands or tens of thousands, in the course of time,depending upon the enthusiasm with which the Consultant pursue the sponsorship of newConsultants. 1994 HLL introducesThese Consultants make purchases of the products of the marketing company for self use Walls. and also for cut-rate sale to other consumers. For their loyalty in regularly purchasing the products,the marketing co. gives discounts, handsome bonuses, rewards and special incentives.Each consultant in the group gets his shares of benefits depending upon the purchasesmade by him and also by the number of the consultant under him (called downlines). This 1995is called netwo rk marketing. HLL enters brandedThe growth in the beginning exit be slow, from 1 to 2 to 4. but later on it will be rapid, staples1000 to 2000 to 4000.. and so on. Given down the stairs are the approx. benefits received, business with saltdepending upon your group strength and on the assumption that each consultant haspurchased goods worth Rs 1,000/- in the month. The benefits will be more for higherpurchases and bigger groups.Group Strength Benefits 1996 HLL introduces253Nos(1+12+60+180) Rs17,938/- branded atta Surf Excel launched1531Nos(1+18+216+1296) Rs64,558/-3061Nos(1+36+432+2592) Rs 1,28,818/- 2002 HLL enters Ayurvedic health & beauty centre. ? 18. Shakti-Hll Rural ProjectShakti is HLLs rural initiative, which targets smallvillages with population of less than 2000 people or less. It seeks to empower underprivileged rural women byproviding income-generating opportunities, health andhygiene preparation through the Shakti Vani programme,and creating access to relevant informa tion through theiShakti community portal.Started in 2001, Shakti has already been extended to about50,000 villages in 12 landed estates Andhra Pradesh, Karnataka,Gujarat, Madhya Pradesh, Tamil Nadu, Chattisgarh, UttarPradesh, Orissa, Punjab, Rajasthan, Maharashtra and WestBengal. The respective state governments and several Project Shakti By using self-helpNGOs are actively knotty in the initiative. Shakti already groups, HLL has pushed its productshas about 13,000 women entrepreneurs in its fold. A typical down into the country. Into villagesShakti entrepreneur earns a sustainable income of about where people cannot spend more thanRs. 00 -Rs. 1,000 per month, which is double their average Rs 20-25 on FMCGs in a monthhousehold income. Project Shakti will expand the distribution cover bottom-up, the rural project will be top-down. Thiswill be a huge competitive advantage for Lever. The costs of expanding into these villages will betoo high for most companies, which do not have a p ortfolio spanning teas to detergents,In recent past Hindustan lever took some major decisions to remodel its business. These decisionshad major impact on the how distribution of lever products is managed in the market.Hindustan lever took the decision to alter the company it merged all the different business unitsinto two large divisions home and personal care (HPC) and foods and beverages (F&B). This gaveeach division The advantage is that these divisions get us enormous scale, The companydecided to whittle its brands down from 110 to 35, over the next three years. This is cognise asHLLs Power Brand strategy. To identify these power brands, managers were asked to consider their growth potential, profitdelivery and the size of the opportunity.And to ensure that Lever would not lose sales, it wasdecided to move these brand users to the designated power brands. For one, the drastic slimmingdown of the brand portfolio which threw up huge problems in execution is now over. HLL is alr eady combining its scale advantage to offer retailers a bigger basket of products and betterservice. Instead of different sales teams servicing the equal retailer, the company has integrated both(prenominal)HPC and Foods portfolios for modern trade chains like Margin Free. Once again, its large portfolio ? 19. ange helps Lever to use the power of customer relationships to corner greater shelf space and adisproportionately higher share of the branded segment. Modern trade, it reckons, is already growing at 15-20 per cent and will continue that way for a longtime. By bulking up the businesses, it is possible for Lever to service these modern trade outlets on adaily business. As a result, these retailers do not have to maintain high inventory levels. HINDUSTAN LEVER LIMITED gameboard OF DIRECTORSMr. Harish Manwani Non Executive chairmanMr. M. K. Sharma Vice ChairmanMr. Arun Adhikari Managing managing director (Home & Personal Care)Mr.S. Ravindranathan Managing Director (Foods)Mr. D. Sundaram Finance & IT DirectorMr. A. Narayan DirectorMr. V. Narayan DirectorMr. D. S. Parekh DirectorMr. C. K. Prahlad Director ? 20. The CompetitorsThe Indian FMCG markets have witnessed some of the classic struggles involving HLL. Sofar Levers have been able to stand their ground but times are changing. HLLs response tothe latest challenges is being eagerly studied by the corporate India. In order to gain afoothold in Indian FMCG sector various municipal and MNC companies are using all kind ofschemes to woo customer from HLL.The major competitors of HLL areDetergents P&G, Nirma, Henkel SpicToothpaste Colgate-PalmoliveBeverages Rasna, Coca-Cola (Sun fill)Tea Tata teaCoffee NestleIce-creams AmulShampoo P&G, Garnier Procter & GambleP&G Home Products Limited is a 100% subsidiary of The Procter & Gamble Company,USA. P&G Home Products Limited is one of Indias fastest growing Fast Moving ConsumerGoods Companies that has in its portfolio P&Gs global brands such as Ariel and Tide in t heFabric Care segment, and in the Hair Care segment Head & Shoulders worlds largestselling anti-dandruff shampoo Pantene worlds No. beauty shampoo and Rejoice AsiasNo. 1 shampoo. Fabric CareProcter & Gamble has two of its world-leading detergents Tide and Ariel, in India to bring home the baconto the main concerns of the Indian households. In India P&G has launched followingbrands Ariel Front-O-Mat Ariel 2 Fragrances Tide Detergent Tide BarHair CareIn India, P&Gs beauty care business comprises of Pantene, the worldslargest selling shampoo, Head & Shoulders, the worlds No. 1 Anti-dandruffshampoo and Rejoice Asias No. 1 Shampoo. Pantene Pro V Head & Shoulders Rejoice ? 1. Baby Care PampersIn India, P&G will continue to be a midget, in derangement considerations, when compared to HindustanLever. The two P&G subsidiaries in India (P&G Hygiene and P&G Home Products) todaygenerate a combined turnover of about Rs 1,100 crore, just a ordinal of Hindustan Leverssales. P&Gs dis tribution network is largely urban and has a make water of 0. 4 m outlets. In 1994, Godrej entered into a strategic alliance with P&G for inter alia toilet soap business,under which Godrej used to manufacture soaps, which were marketed by a joint venturecompany.However post marketing alliance with P&G, the company lost significant part ofits market share and subsequently the locating was discontinued. Godrejs entiredistribution network was then taken over by P&G. THE Procter & Gamble -Gillette deal could result in the former getting a significant boostboth to its scale of operations and range of products in the Indian market. That Gillettesportfolio of neaten razors, gels, grooming products and toothbrushes has no overlap withthat of P&G in India (shampoos, detergents, distaff hygiene, cold medication) is apositive.The addition of Gillettes businesses could help P&G expand its portfolio andacquire a more extensive distribution network This may strengthen P&Gs hand in theongoing war for market share with Unilever arms in the Asian markets, particularly withHindustan Lever in India. NirmaNirma is one of the few names which is blatantly recognized as a true Indian brand, whichtook on mighty multinationals and rewrote the marketing rules to win the heart of princess,i. e. the consumer. It was way back in 60s and 70s, where the domestic detergent market had only premiumsegment, with very few players and was dominated by MNCs.It was 1969, when KarsanbhaiPatel started door-to-door selling of his detergent powder, priced at an astonishing Rs. 3 perkg, when the available cheapest brand in the market was Rs. 13 per kg. In a mindless span,Nirma created an entirely new market segment in domestic marketplace, which is, eventuallythe largest consumer pocketand quickly emerged as dominating market player. Now, the year 2004 sees Nirmas annualsales touch 800,000 tones, making it one of the largest volume sales with a single brandname in the world.Looking at the FMCG sy nergies, Nirma stepped into toilet soapsrelatively late in 1990 butthis did not deter it to achieve a volume of 100,000 per annum. This makes Nirma thelargest detergent and the second largest toilet soap brand in India with market share of 38%and 20% respectively. SoapsIn 1992, sensing a strong need to expand the market through PenetrativePricing, Nirma entered this market with the launch of Nirma Bath Soap&Nirma Beauty Soap . In 1998 Nirma expanded its product line in the soap ? 22. ategory by introducing Nirma Lime Fresh & Nirma ruddiness. This brand had carved a nichein its segment by achieving leadership position just within two months of its launch. It isavailable in 100g and 150g pack sizes. Nirma entered the premium soap segment when itlaunched Nirma SandalDetergentsNirma launched Nirma Washing Powder in Indian market in year 1969, This productwas priced at almost one third to that of the competitor brands, resulting into instant trial bythe consumers. Presently Nirma has di fferent variants in Indian market.Nirma washing powderNirma superNirma popularEdible SaltNirma has also entered the Food market in the recent past with launch of Nirma Shudh. ? 23. FINANCIAL ANALYSISRatio Analysis ? 24. All figures in Rs cr Particulars Dec 2001 Dec 2002 Dec 2003 Dec 2004 bargains 12420. 71 10641. 15 11919. 04 11594. 65 Total assets 7089. 06 7761. 01 8104. 68 7820. 34 Net worth 3170. 86 3713. 91 2189. 22 2148. 67 Borrowings 102. 55 86. 23 1715. 18 1604. 25 Capital Employed 3273. 41 3800 3904 3752 Debtors 1254. 38 1169. 49 1228. 55 793. 56 PAT 1576. 47 1757. 59 1687. 3 1208. 4 PBDIT 2211. 63 2461. 31 2462. 92 1875. 63 derogation 202. 63 192. 65 199. 99 195. 68 PBIT 2009 2269 2262. 9 1680Current liabilities & Provisions 3709. 17 3841. 92 4084. 71 3919. 71 Current assets 3505 3510 3610 3132 Current assets -Inventories 2201 2146 2120 1574 Long term Debt 102. 55 86. 23 1715. 18 1604. 25 Interest 12. 31 12. 86 69. 12 136. 25 Total Purchases 6077. 97 5389. 04 5438 5413. 7 7 profitability Ratios in operation(p) Profit Margin (%) 16. 17 21. 30 19 14. 5 Net Profit Margin Ratio (%) 12. 68 16. 51 14. 15 10. 42 ROTA (%) 28. 3 29. 23 27. 92 21. 5 ROCE 61. 37 59. 72 58 44. 77 refund on Equity (%) 49. 71 47. 3 77 56. 23 Liquidity Ratios Current ratio 0. 944 0. 91 0. 88 0. 79 Quick Ratio 0. 59 0. 55 0. 52 0. 40 coercive Cash Ratio 0. 25 0. 254 0. 218 0. 20 Solvency Ratios Debt Equity Ratio . 032 0. 023 0. 78 0. 75 Interest coverage Ratio 163. 2 176 32. 74 12. 33 Efficiency Ratios Debtor Days 38. 85 40. 11 37. 62 25 Creditor days 135. 31 149. 2 131. 62 145. 23 Total assets turnover ratio 1. 75 1. 37 1. 47 1. 48 ? 25. Interpretation Profitability RatiosHLL earns 14. paisa on every Re. 1 of Sale before Interest and Taxes It lastly makes 10. 42paisa on every Re. 1 of Sale afterwards Interest and Taxes. It is subgross that Hindustan Lever Ltd. has not been able to increase its Operating Profit marginconstantly over the years. We can see that the operating m argin has change magnitude considerable in thelast year. This is mainly due to the fact that the interest cost of HLL has almost bivalent from 69. 12crores to 136. 25 crores. Moreover the companys operating expenses have increase by almost 75% in the year 2004.The efficiency has sure decreased over the last few years mainly owing tohigh operating expenses , increased interest accuse and high indirect taxes. The Net Profit Marginhas also decreased by 17. 8 % in 2004 as compared to 2001. This is mainly due to the decrease insales by Rs. 826 cr. HLL generates 21. 5% bring round on Total Assets (ROTA) that it employs in its operations in theyear ended 2004. ROTA has decreased in the last year mainly due to the fact that its profit marginhas decreased. It could be ecause of high competition as a result of which winnings have decreasedand the total assets of the company have increased. As we can see that the Return on Capital Employed (ROCE) for Hindustan lever Limited hasdecreased considerably during the last year mainly due to lower profit margins. The company isearning a return of 44. 77% on the funds employed by it. Though the ROCE has seen aconsiderable change, even now the company is getting good enough returns and can pay goodenough dividends to the shareholders as we saw the case in the year 2004 where the rate ofdividend was 250%.The Return on Equity Ratio ( roe) states how much profit a company earned in comparisonto total amount of shareholders equity on the balance sheet of the company. Here, we see that thehard roe of HLL has increased in comparison to the year 2001 but this cant be concluded as afavourable situation for the company as looking at the figures in detail we can get a line that there hasbeen a near to 30% decrease in ROE in comparison to the year 2003 , also we do see that the PATof the company has fallen by about 23% and the shareholders equity has also decreased by 32% incomparison to the year 2004. But Even now an ROE of about 56. 3% is considered to be verygood. Liquidity RatiosIt can be seen from the preceding(prenominal) table that the Current Ratio for all the years is less than 1. Thissignifies that HLL has defraud term liabilities greater than the short term assets. It implies that thecompany would have problems in managing its short term liabilities and liquidity requirements. The company might have to resort to financial realise its short term liquidity requirements by long termsources of finance. We can observe that the current assets have decreased by 13 % and at the same time the currentliabilities have decreased by just 4 % in the last year.The reason is that since the company is ? 26. using long term sources of finance to fund its short term obligations therefore the interest burdenhas increased and as a result the cash balance has decreased . Other receivables have also decreasedby more than 66% leading to a fall in current assets. Solvency RatiosThe company was highly unleveraged in the years 2001 and 2002. It was risky as the company hadinvested a huge amount of its own funds as compared to debt. However in the last 2 years thecompany has changed its policy and is supplement the advantage of debt along with equity.Thoughthe debt equity ratio of 0. 75 is not good enough as compared to industry norms of 21 but thecompany is moving towards a favourable debt equity mix. It has realized the importance of tradingon equity . The Company has increased its debt burden by 1470% in the last 4 yearsInterest Coverage Ratio(ICR) basically signifies the ability of a firm to service its interest burdenthrough the profits generated . In the initial years when the firm had not employed debt its interestburden was very low.As a result the Interest Coverage ratio is very high, stepwise the companyhas employed more debt and as a result of which the interest burden has increased significantly. Moreover, due to high competition and operating inefficiency the earnings of the company ha vedeclined. As a result the ICR has reduced from 163. 2 to 12. 33 in the last 4 years. However an ICRof 12. 33 is still very stunning which reflects the companys ability to pay interests on loanseasily. This is a good indicator to the various financial institutions providing long term sources offinance to HLL. Efficiency RatiosHere, we see that the Debtors Days for the company is less than the Creditor Days of thecompany. From this we can interpret that the company has a favorable cash position as it is makingits payments long after receiving the dues from the debtors. Here, from the Asset Turnover Ratiowe can know how efficiently the firm is using its assets, the ratio for which is pretty low for thecompany. The Creditor Days as well as Debtor Days both show negative growth which reflectsnegatively on the companys financials. The Asset Turnover Ratio also shows negative growthwhich is also not a good sign for the company.Thus, looking into these figures we can analyze thatthe effi ciency level of the company has gone down vis-a-vis the previous years and hence thecompany needs to look urgently into these matters so as to improve the efficiency of the company. O DU-PONT RATIO ANALYSISThe Du Pont ratio analysis is a combination of financial ratios in a serial in order to assess theinvestment returns of the company. It combines the financial ratios of both the Income Statementas well as the Balance Sheet in order to assess either the Return on Equity or the Return onInvestment.One of the Plus points of this method is that it provides a clear understanding of howthe company generates its return. This analysis provides an insight into the importance of assetturnover as well as sales to overall return. This formula shows the relationship of profit margin andturnover how these two complement each other. ? 27. The Du Pont ratio divides the Return on equity into three parts Net Profit Margin, total assetturnover, and the companys use of leverage referred to as Equit y Multiplier also. DU-PONT chart FOR HLL FOR THE YEAR 2004 RETURN ON EQUITY =PAT/NETWORTH 56. 3% Equity NET PROFIT TOTAL ASSET Multiplier MARGIN perturbation =TA/NW =PAT/NETSALES =SALES/TA =10. 42% =1. 48 =3. 64% RETURN ON ASSETS ROA=PAT/TA =15. 44%Growth Trends Over The Years Particulars Dec-01 Dec-02 Dec-03 Dec-04 ? 28. Sales 12420. 71 10641. 15 11919. 04 11594. 65Expenditure 10627 8690 9941 10076Change InSales (%) -14. 33 12 -2. 7Change InExpenditure(%) -18. 22 14. 39 1. 35Change inPBIT (%) 12. 94 -0. 26 -25. 75Change inPAT (%) 11. 48 -3. 99 -28. 38Change inBorrowings(%) -15. 91 1889 6. 46Change InInterest (%) 4. 46 437. 48 97. 12 ? 29. COMMON MARKETING MIX FOR exclusively MARKETS 1.Product consists of brand, quality, appearance, 2. Price Structure consists of prices, dealers and consumers discounts. 3. promotional activities consist of advertising, media. 4. Placement (distribution) system consists of dealers, distributors, retailers and overall logistics. MARKETING MI X FOR RURAL MARKET 1. Product 2. Price 3. Promotion 4. Placement system 5. Packaging-Reason for putting it separately is because symbols and packaging becomes very important when literacy levels are very low. 6. Retailer is the one who gives all information about brand choice and consumer feedback. 7.Education is very important for rural sector-eg. Project Shakti 8. empowerment Example-Project Shakti and Self Help Groups. PRODUCTSurf derives its name from Surfactant the basic ingredient of a detergent. After 44 years, Surf brand has been upgraded and made more modern and contemporary. Surf has changed the entire brand is now called Surf Excel. Continuousimprovements in the formulation of the product and introduction of new ingredients e. g. enzymes, along with new perfumes have ensured that the product meets the evolvingconsumer needs. The brand Surf Excel now has three variants Surf Excel Quickwash, ? 0. Surf Excel Blue and Surf Excel Automatic which address different laundry n eeds buteach offers stain removal as the key benefit. Surf Excel Blue Target segment Economic segment. Attributes-Removes stains without fading colours. Sizes avalaible 25gm, 200gm, 500gm, 750gm, 1. 5kg, 3kgSurf Excel Quickwash (also called as Surf Excel Easy wash)(Hitherto known as just Surf Excel) Target segment Superior quality for washing machine users. Sizes available- 20gm, 20gm, 500gm, 1kg, 1. 5kg Attributes-Stain removalSurf Excel Automatic Target segment-Washing machine owners Top and front loading machines .Sizes available- 600gm, 1kg Attributes Low lather detergent, anti corrosive, stain removal, ensures longer life of fabric. PRICELatest price war amongst detergent majors, Hindustan Lever (HLL), monitoring device and GambleIndia (P&G), Nirma and Henkel-Spic India (HSIL) has proved that price in the marketingmix is very critical for growth of HLL products. If Surf excel prices were reduced to match the price cuts of their competitor (P&G),simultaneously they had to ramp up spending on advertising and promotions to increaseconsumption and penetration in the market and retain values of premium brand ? 1. PROMOTIONSSurf communication has been pleasant, soothing and gentle, Surf Excel has had adistinctively bold tongue in pertness style of communication. Promotions for Surf Excelare more often than not tactical weapons. pay is offered to the consumer to gain short-term patronage or to engineer enhanced consumption. natural selection of various promotionalgifts is usually governed by what can be bought cheap kinda than any brand-relatedfactors. Surf Excel has always been sensitive enough to recognise the change in the consumerchoice dynamics.In some of their promotions, they have pampered influencersconsidering that brand choice in family products is a collective exercise. Various promotions being used for Surf are Scholarship offer Rs five lakh scholarship. Extremely rare and nimble use of the marketing budget. Beauty of this promotion is in its design. An innovative and tricksy way of underscoringthe core promise of Surf Excel stain removal Visual depiction in the ad is student-focussed there are no mothers or daughters to be seen in the ad.Most of the people inthe ad are in their teens. The protagonist himself is barely in his teens. This can be anindication towards changing consumer algorithm. This was approve by Win with Stains endure one of the largest campaigns taken upby Surf excel. This promotion is happening in Orissa markets which is aimed at offering consumers achance to win prizes as well as give students an opportunity to pursue further studies. Theaim of the whole campaign is to drive home the point that stains are good in life and oneis not to be scared to get themselves dirty.They are not only doing road shows,advertisements but branded horoscope columns in keeping with the theme of dowery andfortune. They have roped in former South African cricketer Jonty Rhodes to participate in theWin with stains washathon to wash the largest stain in town with kids of the NGO -Magic Bus 1 bucket free with 3kg of Surf Excel has really managed to increase sales revenue of Surf excel. This is the most successful consumer promotion till fancy in Orissa market. Surf KidStains a roadshow that invites consumers to get first-hand experience of using Surf.Surf has taken communication beyond mass media advertising and involved consumersin the brands promise in the real world. It has touched consumers life through schoolcontact and in-store programmes. Road shows have helped to go to the consumers anddemonstrate superior performance vis-a-vis competition. ? 32. emplacement SYSTEMIn Orissa, HLL has around 100 dealers and distributors. But HLL is into the exercise ofreducing number of channels in Orissa by increasing territory size of each dealer. HLL Distribution in Rural MarketsHLL has come up with new distribution channels to cater to rural markets.For long-term benefits, HLL has mounted an init iative, Project contour, to furtherincrease its rural reach with the help of rural sub-stockists. It has already appointed 6000such sub-stockists. As a result, the distribution network directly covers about 50,000villages, reaching about 250 million consumers. The pivot of Streamline is the RuralDistributor (RD), who has 15-20 rural sub-stockists attached to him. Each of these sub-stockists is located in a rural market. The sub-stockists then performs the role of drivingdistribution in neighboring villages using unconventional means of transport such astractor, bullock cart,etc.The Streamline system has extended direct HLL reach in these markets to about 37% ofIndias rural population from 25% in 1995 and the number of HLL brands and SKUsstocked by village retailers has gone up significantly. ? 33. PACKAGINGPackaging plays a key role in rural markets. Since customers are daily mesh earners andthey dont have monthly incomes like the urban consumers have, so Surf excel ispackaged in smaller sizes of 20gm so that they can spend given their kind of incomestreams. EDUCATIONSince vast majority of rural India lacks even basic education levels and modern outlook,HLL is training their new sellers to basic education levels.This is example of ProjectShakti which is explained in detail later. EMPOWERMENTHLL runs the program of Self-Help Groups (SHG), which prevail like direct-to-homedistributors. The mo del consists of groups of (15-20) villagers down the stairs the poverty line(Rs. 750 per month) taking micro-credit from banks, and using that to buy HLL products,which they will then directly sell to consumersPrices of products 20gm 25gm 200gm 500gm 600gm 750gm 1kg 1. 5kg 3 kgSurf Quickwash 2 NA 23 53 NA NA 103 153 NASurf Automatic NA NA NA NA 90 NA 145 NA NASurf Blue NA 2 16 40 NA 53 NA 103 220 ? 34.Range of productsIf we divide detergent industry into three tiers Premium at Rs. 80-140 per kg Mid-price at Rs. 30-50 per kg Popular at Rs. 15-25 per kgPopular segmen t accounts for 80% of the detergent industry. HLL leads in detergent powders withPremium Surf ExcelMid price SunlightPopular Rin, WheelDealers and distributorsRetail Distributor MarginsExample of various distributor discounts on sale of these variants. Sale of 200gm Surf Excel Dealer Discount of 8%Sale of 20 gm Surf Excel Dealer Discount of 12% sell Distributor MarginsThey get a standard discount of 1. % on sale of any variantStrategies in Orissa market 1. Shakti ProgramWith a twin objective of creating income-generating capabilities for underprivilegedrural women and improving their rural living standard through health and hygieneawareness, the Project Shakti is implemented in Orissa. Housewives and old ladies are targeted for this project. They are trained and given basiceducation to sell products. All products which are priced below Rs 5 are sold through thisproject. The sellers which are all ladies are paid margins of 3% on their sale of products.Now out of a total of 15,454 Shakti Entrepreneurs across India, Orissa hasover 928 (6%)Shakti Entrepreneurs spread across 22 districts. They are operating through Self Help Groups (SHGs) which is makes women direct-to-home distributors of HLL. Partnerships with several NCOs and support from stategovernments have been key enablers for the programme. Currently women entrepenuersare earning an average income of Rs. 7007- per month, doubling their household income. For the SHG women, it provides a stable, sustainable source of income.For villagers, thischannel has become a source of genuine and correctly priced products. ? 35. SALES TREND IN BHUBANESHWARBig Bazaar ,BhubaneshwarSales figures of Surf excel and is competitors Surf Ariel TideJuly sales 1,21,000 26,246 71,672July sold quantity 1787 pieces 341 pieces 1996 pieces ? 36. MARKET SHARE OF SURF Bhubaneswar, 20% Orissa, 35% Surf Excel Surf Blue Orissa, 65% Bhubaneswar, 80%SALE OF SURF EXCEL ON root OF DIFERENT SIZES 10% 25% 20gm 200gm 500gm others(1kg,1. 5kg) 15%50%SALE OF SURF BLUE ON BASIS OF DIFERENT SIZES 7% 13% 20% 500gm 750gm5% 1kg 3kg 55% others(25gm,200gm) ? 37.PERCENTAGE SHARE OF SURF IN PREMIUM DETERGENTSMARKET 25% Surf Excel Ariel 75%SALE OF SURF EXCEL ON BASIS OF SEASONSCustomers reduce their washing frequency in rains, so the sales are drastically bear upon. Sale of detergents is strongly affected by seasonal changes as shown in the chart below. 12% 18% Summers Winters Rains 70% ? 38. COMPETITOR ANALYSIS. In this section we compare HLL with its competitors, viz. Proctor and Gamble (Ariel, Tide) and Nirma Ltd (Nirma washing powder). We now compare these products and the companies on the various counts. Market Share The per capita consumption of detergents in India is 2. kg per annum. The synthetic detergent market can be classified into three main categories Premium (Surf and Ariel) 15% of total market Mid price (Rin and Wheel) 40% of total market Popular (Nirma) 45% of total market. Product Comparison HLL (market share 40%, including all 3 segments) manufactures Surf Excel in three avatars, Surf Excel Blue, Surf Excel Automatic and Surf Excel Quick wash. The USP of Surf Excel is that it reduces soaking time and water usage by 50%. It also contains a lesser amount of bleach than Ariel or Tide. P&G (market share 12%, including all 3 segments) produces both Ariel and Tide.Ariel is produced in three types, Ariel Front-o-mat, Ariel Spring Clean and Ariel Fresh Clean. The USP here would be removal of tough stains while taking care of cloth quality and imparting a fresh perfume to it. Tide detergent improves washing experience while imparting a lingering lemon fragrance to clothes. Nirma (market share 30% of popular segment) comes in three variants, Nirma washing powder, Super Nirma washing powder and Nirma popular washing powder. Its USP would be low prices and the value for money it gives to the customer. Pricing Comparison We now compare the prices for these brands.The price of each product and it s variant is shown in the table b 20gm 200gm 500gm 600gm 750gm 1kg 1. 5kg 2kg 3 kg 4kg (30sachets)Surf Quick wash 2 23 53 NA NA 103 153 NA NA NASurf Automatic NA NA NA 90 NA 145 NA NA NA NASurf Blue NA 16 40 NA 53 NA 102 NA 220 NAAriel 2 22 50 NA NA 99 145 NA NA NATide 1 10 23 NA NA 46 NA 88 NA 186 ? 39. Place comparisonHLLs distribution system is one of its key strengths. The delivers its finished productsto various Carrying and Forwarding Agents, via whom the goods reach differentwholesalers. From here the goods are delivered to either rural or urban retailers, viawhom they reach the consumers.HLLs scale enables it to provide superior customer service including daily servicing,improving their range availability whilst reducing inventories. An IT-powered system hasbeen implemented to supply stocks to redistribution stockists on a continuousreplenishment basis. The objective is to catalyze HLLs growth by ensuring that the rightproduct is available at the right place in right quantit ies, in the most cost-effectivemanner. For this, stockists have been connected with the company through an Internet-based network, called RSNet, for online interaction.As far as distribution to rural areas is concerned, they use a process called ProjectStreamline, wherein there exist networks of rural sub-stockists, who operate in the ruralareas itself. 20-30 sub-stockists come under a rural distributor (RD). The sub-stockists arethen trustworthy for distributing the products in rural areas. Nirma Limited markets its products through its fully owned subsidiary Nirma ConsumerCare Limited (NCCL), which was incepted in 1985. NCCL then resells the productsthrough Nirma and Nima. Nirma pioneered the concept of flat distribution network.Nirma Consumer Care Limited operates with two parallel distribution networks. TheNIRMA brand is marketed through the first network, which consists of about 450exclusive distributors. It is one of the lowest cost FMCG distribution channels of thecountry. T he belief channel for Nirmas Products is the lowest cost system in Indiawith in built flexibility and speedy distribution. All NIRMA and NIMA range of productshave a retail reach of over two million retail outlets and more than 40 million loyalconsumers spread all over the country.The Company has been successful in establishingan extremely good urban as well as rural presence through the two distribution channels. The distribution channels have played a significant role in making Nirma a householdname. The efficient network has made Nirma Washing Powder the brand with highestpenetration in its product category. The network is well equipped to meet the demands ofthe loyal consumers of the Company across the country. ? 40. Promotion comparisonHLL. Advertising. Surf excel, synonymous with the catch line, Surf Excel hai naa was the first nationaldetergent brand on television.It has indulged in numerous advertisement campaignswhich have gained a lot of popularity. Surf Excel and Lalita ji ad also was in news for a long time. Slice of life situations havegenerated high levels of interest in the communication. Using consumer speak in the formof testimonials has helped in building credibility in the brand. She was a hard-headed bargain-hunting housewife who demanded value for money andnot just cheap price. Consumers faith in Surf was restored, and not just because sheoffered a rational argument. The real reason Lalitaji was believed was because she wastrusted y the Indian housewife to get her a good bargain. We showed her bargainingwith the vegetable vendor about good tomatoes and bad tomatoes Sasti cheez orachchi cheez me farak hota hai, bhai saab. This advertisement reversed a declining brand share trend. The currents advertisement on television shows noted actor and human rights activistShabana Azmi (who did promote Ariel once upon a time), walking with two buckets ofwater and encouraging a crowd of people to do the same. It basically plays on SurfExcels strength to perform with lesser amounts of water.It thus underlines th