RESEARCH REPORT

ON

“A STUDY A DISTRIBUTION CHANNEL OF UNILEAVER

IN RURAL MARKET”

Submitted In Partial Fulfillment for the

Award Of Degree of

MASTER OF BUSINESS ADMINISTRATION(U.P. Technical University, Lucknow)

SUBMITTED TO: SUBMITTED BY-MR. J.N. GIRI SUNNY KUMAR(FACULTY, MIMT) Roll No. : 0615270112

Mangalmay Institute of Management & Technology

Website: www.mangalmay.org, E-Mail.: info@mangalmay.org,

GREATER NOIDA

ACKNOWLEDGEMENT

“Words express everythingMouth Co-ordinates,

When it comes to gratitude,Heart comes to play.”

There is always a sense of gratitude which one expresses to other people for their

helpful and needy service they render during phases of life. I too would like to do

the same as I really wish to express my gratitude to those who have been helpful to

me in getting this project completed.

In representing this report I would like to express my gratitude to Mr. J.N.

Giri.

Center for management technology for providing me with his able guidance and

inspiration for the completion of research report

I am also indebted to all the faculty members of center for management

technology for providing consistent encouragement and congenial atmosphere to

complete the research report

SUNNY KUMAR

2

TABLE OF CONTENTS

INTRODUCTION

COMPANY PROFILE

PRESENT MARKET STRATEGY

RESEARCH METHODOLOGY

FINDINGS AND CONCLUSIONS

SUGGESTIONS

QUESTIONNAIRE

LIMITATIONS

BIBLIOGRAPHY

ANNEXURE

3

EXECUTIVE SUMMARY

Unilever is India’s largest Fast Moving Consumer Goods Company,

touching the lives of two out of three Indians with over 20 distinct

categories in Home & Personal Care Products and Foods & Beverages.

They endow the company with a scale of combined volumes of about 4

million units and sales of Rs.10, 000 crores.

UNILEVER is also one of the country’s largest exporters; it has been

recognized as a Golden Super Star Trading House by the Government

of India. Hence, research aims is that to study the existing marketing

practices, emerging marketing plans and understanding companies

business strategy with its profile. The main recommendations have

been made on the addressing of the advertising message to the

customers. An attempt has been made to formulate the

communication in a way to build it on a platform of the basic need for

buying UNILEVER products. In another recommendation the

suggestions towards better dealer interest in UNILEVER products has

been given a chance.

The research is based primarily on primary data; however few

references to industry figures from secondary data have been made.

Data has been collected through in depth interviews and administered

questionnaires.

The study has given the researchers an inside of the Consumer durable

Industry and an opportunity to use the theoretical knowledge in live

project.

4

INTRODUCTION

HISTORY

Over 100 years' link with India. In the summer of 1888, visitors to the

Kolkata harbor & noticed crates full of Sunlight soap bars, embossed

with the words "Made in England by Lever Brothers". With it, began an

era of marketing branded. Fast Moving Consumer Goods (FMCG).

Soon after followed Lifebuoy in 1895 and other famous brands like

Pears, Lux and Vim. Vanaspati was launched in 1918 and the famous

Dalda brand came to the market in 1937.

In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati

Manufacturing Company, followed by Lever Brothers India Limited

(1933) and United Traders Limited (1935). These three companies

merged to form UNILEVER in November 1956; UNILEVER offered 10%

of its equity to the Indian public, being the first among the foreign

subsidiaries to do so. Unilever now holds 51.55% equity in the

company. The rest of the shareholding is distributed among about

380,000 individual shareholders and financial institutions.

The erstwhile Brooke Bond's presence in India dates back to 1900. By

1903, the company had launched Red Label tea in the country. In

1912, Brooke Bond & Co. India Limited was formed. Brooke Bond

joined the Unilever fold in 1984 through an international acquisition.

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The erstwhile Lipton's links with India were forged in 1898. Unilever

acquired Lipton in 1972, and in 1977 Lipton Tea (India) Limited was

incorporated.

Pond's (India) Limited had been present in India since 1947. It joined

the Unilever fold through an international acquisition of Chesebrough

Pond's USA in 1986.

Since the very early years, UNILEVER has vigorously responded to the

stimulus of economic growth. The growth process has been

accompanied by judicious diversification, always in line with Indian

opinions and aspirations.

The liberalization of the Indian economy, started in 1991, clearly

marked an inflexion in UNILEVER's and the Group's growth curve.

Removal of the regulatory framework allowed the company to explore

every single product and opportunity segment, without any constraints

on production capacity.

Simultaneously, deregulation permitted alliances, acquisitions and

mergers. In one of the most visible and talked about events of India's

corporate history, the erstwhile Tata Oil Mills Company (TOMCO)

merged with UNILEVER, effective from April 1, 1993. In 1995,

UNILEVER and yet another Tata company, Lakme Limited, formed a

50:50 joint venture, Lakme Lever Limited, to market Lakme's market-

leading cosmetics and other appropriate products of both the

companies. Subsequently in 1998, Lakme Limited sold its brands to

UNILEVER and divested its 50% stake in the joint venture to the

company.

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UNILEVER formed a 50:50 joint venture with the US-based Kimberly

Clark Corporation in 1994, Kimberly-Clark Lever Ltd, which markets

Huggies Diapers and Kotex Sanitary Pads. UNILEVER has also set up a

subsidiary in Nepal, Nepal Lever Limited (NLL), and its factory

represents the largest manufacturing investment in the Himalayan

kingdom. The NLL factory manufactures UNILEVER's products like

Soaps, Detergents and Personal Products both for the domestic market

and exports to India.

The 1990s also witnessed a string of crucial mergers, acquisitions and

alliances on the Foods and Beverages front. In 1992, the erstwhile

Brooke Bond acquired Kothari General Foods, with significant interests

in Instant Coffee. In 1993, it acquired the Kissan business from the UB

Group and the Dollops Icecream business from Cadbury India.

As a measure of backward integration, Tea Estates and Doom Dooma,

two plantation companies of Unilever, were merged with Brooke Bond.

Then in July 1993, Brooke Bond India and Lipton India merged to form

Brooke Bond Lipton India Limited (BBLIL), enabling greater focus and

ensuring synergy in the traditional Beverages business. 1994

witnessed BBLIL launching the Wall's range of Frozen Desserts. By the

end of the year, the company entered into a strategic alliance with the

Kwality Icecream Group families and in 1995 the Milkfood 100%

Icecream marketing and distribution rights too were acquired.

Finally, BBLIL merged with UNILEVER, with effect from January 1, 1996.

The internal restructuring culminated in the merger of Pond's (India)

Limited (PIL) with UNILEVER in 1998. The two companies had

significant overlaps in Personal Products, Specialty Chemicals and

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Exports businesses, besides a common distribution system since 1993

for Personal Products. The two also had a common management pool

and a technology base. The amalgamation was done to ensure for the

Group, benefits from scale economies both in domestic and export

markets and enable it to fund investments required for aggressively

building new categories.

In January 2000, in a historic step, the government decided to award

74 per cent equity in Modern Foods to UNILEVER, thereby beginning

the divestment of government equity in public sector undertakings

(PSU) to private sector partners. UNILEVER's entry into Bread is a

strategic extension of the company's wheat business. In 2002,

UNILEVER acquired the government's remaining stake in Modern

Foods.

In 2003, UNILEVER acquired the Cooked Shrimp and Pasteurised

Crabmeat business of the Amalgam Group of Companies, a leader in

value added Marine Products exports.

COMPANY PROFILE

The mission that inspires UNILEVER's 36,000 employees, including over

1,350 managers, is to "add vitality to life." UNILEVER meets everyday

needs for nutrition, hygiene, and personal care with brands that help

people feel good, look good and get more out of life. It is a mission

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UNILEVER shares with its parent company, Unilever, which holds

51.55% of the equity. The rest of the shareholding is distributed among

380,000 individual shareholders and financial institutions.

UNILEVER's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair &

Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke

Bond, Kissan, Knorr-Annapurna, Kwality Wall's – are household names

across the country and span many categories - soaps, detergents,

personal products, tea, coffee, branded staples, ice cream and culinary

products. They are manufactured in close to 80 factories. The

operations involve over 2,000 suppliers and associates. UNILEVER's

distribution network, comprising about 7,000 redistribution stockists,

directly covers the entire urban population, and about 250 million rural

consumers.

UNILEVER has traditionally been a company, which incorporates latest

technology in all its operations. The Hindustan Lever Research Centre

(HLRC) was set up in 1958, and now has facilities in Mumbai and

Bangalore. HLRC and the Global Technology Centres in India have over

200 highly qualified scientists and technologists, many with post-

doctoral experience acquired in the US and Europe.

UNILEVER believes that an organisation's worth is also in the service it

renders to the community. UNILEVER is focusing on health & hygiene

education, women empowerment, and water management. It is also

involved in education and rehabilitation of special or underprivileged

children, care for the destitute and HIV-positive, and rural

development. UNILEVER has also responded in case of national

calamities / adversities and contributes through various welfare

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measures, most recent being the village built by UNILEVER in

earthquake affected Gujarat, and relief & rehabilitation after the

Tsunami caused devastation in South India.

Over the last three years the company has embarked on an ambitious

programme, Shakti. Through Shakti, UNILEVER is creating micro-

enterprise opportunities for rural women, thereby improving their

livelihood and the standard of living in rural communities. Shakti also

includes health and hygiene education through the Shakti Vani

Programme, and creating access to relevant information through the

iShakti community portal. The programme now covers about 50,000

villages in 12 states. UNILEVER's vision is to take this programme to

100,000 villages impacting the lives of over a 100 million rural Indians.

UNILEVER is also running a rural health programme – Lifebuoy

Swasthya Chetana. The programme endeavtheirs to induce adoption of

hygienic practices among rural Indians and aims to bring down the

incidence of diarrhoea. It has already touched 70 million people in

approximately 15000 villages of 8 states. The vision is to make a billion

Indians feel safe and secure. If Hindustan Lever straddles the

Indian corporate world, it is because of being single-minded in

identifying itself with Indian aspirations and needs in every walk of life.

UNILEVER INDIA’S LARGEST FMCG COMPANY

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FINANCIAL OVERVIEW

11

12

Hindustan Lever Limited Shareholding Pattern

Unilever 51.6

Flls 13.7

Domestic Fls

14.8

Individual 19.9

13

UNILEVER Equity Capital - 50 Mn $Market Capitalisation - 7,300 Mn $

PRESENT MARKETING STRATEGY:

Mission:

Unilevermission is to add Vitality to life. We meet everyday needs for nutrition,

hygiene, and personal care with brands that help people feel good, look good

and get more out of life.

Policy:

UNILEVER has earned a reputation for conducting its business with integrity and

with respect for the interests of those their activities can affect. This reputation is

an asset, just as real as their people and brands.

Their first priority is to be a successful business and that means investing for

growth and balancing short-term and long-term interests. It also means caring

about their consumers, employees and shareholders, their business partners and

the world in which we live.

From UNILEVER Spokesperson “To succeed requires the highest standards of

behavior from all of us. The general principles contained in this Code set out

those standards. More detailed guidance tailored to the needs of different

countries and companies will build on these principles as appropriate, but will not

include any standards less rigorous than those contained in this Code.

We want this Code to be more than a collection of high-sounding statements. It

must have practical value in their day-to-day business and each one of us must

follow these principles in the spirit as well as the letter”.ref: business world

magazine.

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Obeying the Law

UNILEVER companies and employees are required to comply with the laws

and regulations of the countries in which they operate.

Employees

UNILEVER is committed to diversity in a working environment where

there is mutual trust and respect and where everyone feels responsible

for the performance and reputation of the company. UNILEVER will

recruit, employ and promote employees on the sole basis of the

qualifications and abilities needed for the work to be performed.

UNILEVER are committed to safe and healthy working conditions for

all employees. We will not use any form of forced, compulsory or child

labour.

UNILEVER are committed to working with employees to develop and

enhance each individual's skills and capabilities.

UNILEVER respect the dignity of the individual and the right of

employees to freedom of association.

UNILEVER will maintain good communications with employees

through company based information and consultation procedures.

Consumers

UNILEVER is committed to providing branded products and services which

consistently offer value in terms of price and quality, and which are safe for their

intended use. Products and services will be accurately and properly labelled,

advertised and communicated.

15

Shareholders

UNILEVER will conduct its operations in accordance with internationally

accepted principles of good corporate governance. They will provide timely,

regular and reliable information on their activities, structure, financial situation

and performance to all shareholders.

Business Partners

UNILEVER is committed to establishing mutually beneficial relations with their

suppliers, customers and business partners.

In their business dealings they expect their partners to adhere to business

principles consistent with their own.

Community Involvement

UNILEVER strives to be a trusted corporate citizen and, as an integral part of

society, to fulfill their responsibilities to the societies and communities in which

they operate.

Public Activities

UNILEVER companies are encouraged to promote and defend their legitimate

business interests. UNILEVER will co-operate with governments and other

organisations, both directly and through bodies such as trade associations, in the

development of proposed legislation and other regulations which may affect

legitimate business interests.

UNILEVER neither supports political parties nor contributes to the funds of

groups whose activities are calculated to promote party interests.

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The Environment

UNILEVER is committed to making continuous improvements in the

management of their environmental impact and to the longer-term goal of

developing a sustainable business.

UNILEVER will work in partnership with others to promote environmental care,

increase understanding of environmental issues and disseminate good practice.

Innovation

In their scientific innovation to meet consumer needs they will respect the

concerns of their consumers and of society. They will work on the basis of sound

science, applying rigorous standards of product safety.

Competition

UNILEVER believes in vigorous yet fair competition and supports the

development of appropriate competition laws. Their companies and employees

will conduct their operations in accordance with the principles of fair competition

and all applicable regulations.

Business Integrity

UNILEVER does not give or receive, whether directly or indirectly, bribes or other

improper advantages for business or financial gain. No employee may offer, give

or receive any gift or payment which is, or may be construed as being, a bribe.

Any demand for, or offer of, a bribe must be rejected immediately and reported to

management.

UNILEVER accounting records and supporting documents must accurately

describe and reflect the nature of the underlying transactions. No undisclosed or

unrecorded account, fund or asset will be established or maintained.

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Conflicts of Interests

All UNILEVER employees are expected to avoid personal activities and financial

interests which could conflict with their responsibilities to the company.

UNILEVER employees must not seek gain for themselves or others through

misuse of their positions.

Compliance – Monitoring – Reporting

Compliance with these principles is an essential element in their business

success. The Unilever Board is responsible for ensuring these principles are

communicated to, and understood and observed by, all employees.

Day-to-day responsibility is delegated to the senior management of the regions

and operating companies. They are responsible for implementing these

principles, if necessary through more detailed guidance tailored to local needs.

Assurance of compliance is given and monitored each year. Compliance with the

Code is subject to review by the Board supported by the Audit Committee of the

Board and the Corporate Risk Committee.

Any breaches of the Code must be reported in accordance with the procedures

specified by the Joint Secretaries. The Board of Unilever will not criticise

management for any loss of business resulting from adherence to these

principles and other mandatory policies and instructions.

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The Board of Unilever expects employees to bring to their attention, or to that of

senior management, any breach or suspected breach of these principles.

Provision has been made for employees to be able to report in confidence and

no employee will suffer as a consequence of doing so.

In this Code the expressions 'Unilever' and 'Unilever companies' are used for

convenience and mean the Unilever Group of companies comprising Unilever

N.V., Unilever PLC and their respective subsidiary companies. The Board of

Unilever means the Directors of Unilever N.V. and Unilever PLC’.ref:THE NEWS

ENVOIRMENT POLICY

Unileversupplies high quality goods and services to meet the daily needs of

consumers and industry. In doing so, the Company is committed to exhibit the

highest standards of corporate behaviour towards its consumers, employees, the

societies and the world in which we live.

The company recognises its joint responsibility with the Government and the

Public to protect environment and is committed to regulate all its activities so as

to follow best practicable means for minimising adverse environmental impact

arising out of its operations.

The company is committed to making its products environmentally acceptable,

on a scientifically established basis, while fulfilling consumers' requirements for

excellent quality, performance and safety.

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The aim of the Policy is to do all that is reasonably practicable to prevent or

minimise, encompassing all available knowledge and information, the risk of an

adverse environmental impact arising from processing of the product, its use or

foreseeable misuse.

This Policy document reflects the continuing commitment of the Board for sound

Environment Management of its operations. The Policy applies to development of

a process, product and services, from research to full-scale operation. It is

applicable to all company operations covering its plantations, manufacturing,

sales and distribution, research & innovation centres and offices. This document

defines the aims and scope of the Policy as well as responsibilities for the

achievement of the objectives laid down.

VISION

Their vision is to continue to be an environmentally responsible organisation

making continuous improvements in the management of the environmental

impact of their operations.

UNILEVER will achieve this through an Integrated Environment Management

approach, which focuses on People, Technology and Facilities, supported by

Management Commitment as the prime driver.

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FMCG Market (HLL Categories) Growth%

6.7

3.4

-2.5-1.1

-4

-2

0

2

4

6

8

00 01 02 03

21

FMCG MarketsSlowdown in growth & then 2 years of decline

Pricing action in 2007:

Price reduction

22

Price reduction (Bottles) & Value improvement (Sachets)

Investment Behind Brands

Innovation & Superior Quality

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Family – safe Petalsoft Water & effort saving Quick wash - 50% No mud Rin

Advance from germs

Perfect Radiance “5 in 1” hair Total Care Whiter teeth Fresher breath

health benefits

Current Market Context

Actions

• Pricing

–Laundry : Price Reduction

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–Shampoos: Value Improvement & Lower Price Points

–Toothpaste: Value Corrections & SKU rationalization

• Investments behind brands

– Innovations

– Quality

– Higher A&P

• Corrective actions in processed

Processed Foods

• Corrective actions

– Phased stock reduction

– Withdrawl of ‘03 innovation

– Defocus of Atta in unviable geographies

• Sales decline of 26% arising from above actions

• Market shares held / improved

25

Sales Growth%

BRANDS

PRODUCTS

Lux   Breeze

Lifebuoy   Dove

Liril   Pears

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Hamam   Rexona

     

Surf Excel     Fair & Lovely  

Rin     Pond's  

Wheel

     

Sunsilk Naturals     Pepsodent  

Clinic     Close-up  

     

Axe     Lakme  

Rexona    

Ayush          

           

     

Brooke Bond   Bru    

Lipton         

     

Kissan   Kwality Wall's    

Knorr Annapurna 

INDIA'S LARGEST BRANDED FMCG EXPORTER

It was 1962. The reality of India then was very different from what it is today.

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India's economy then suffered from foreign exchange shortage. Hindustan

Lever voluntarily decided to take up Exports to support the country's economy.

Today, UNILEVER is India's largest exporter of branded Fast Moving Consumer

Goods. It has been recognized by the Government of India as a Golden Super

Star Trading House.

Over time, UNILEVER has developed appropriate capabilities to be globally

competitive in cost and quality for a viable Exports business.

FOCUS AREAS

UNILEVER's Exports focuses on two broad areas. It is a sourcing base for

Unilever brands in Home & Personal Care (HPC) and Tea for supplies to other

Unilever companies. It also focuses on becoming a preferred supplier to both

non-Unilever and Unilever clients in three categories in which India, as a

country, has competitive advantage - Marine Products, Castor and its

Derivatives and Rice. UNILEVER enjoys international recognition within Unilever

and outside for its quality, reliability and speed of customer service.

UNILEVER's Exports geography comprises, at present, countries in Asia,

Australia, Africa, North America and Europe.

UNILEVER'S EXPORTS PORTFOLIO

HPC:

The categories are soaps, skin care products and oral care products. The brands

are Lux, Lifebuoy, Pears, Fair & Lovely, Dove, Vaseline, Close-Up, Pepsodent,

Signal. UNILEVER is the only source of Pears soap across the world.

Tea:

The categories are branded packet tea, and instant tea for Unilever's ready-to-

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drink tea business. The branded teas are Brooke Bond, Brooke Bond Red label,

Brooke Bond Taj Mahal, Lipton, Lipton Yellow Label, Lipton Green Label, Lipton

Brisk, Lipton 3-in-1 premix, Chinese Rickshaw.

Marine Products:

UNILEVER offers a comprehensive portfolio, ranging from Surimi, Crabsticks to

Shrimps and several value-added products. Among its customers is Icelandic,

the world's third largest seafood company. In addition, UNILEVER has also

become a part of Unilever's supply chain in seafoods for Europe too. UNILEVER's

Marine Products brands are Ocean Diamond, Ocean Excellence, Shogun, Hima,

Gold Seal, Tara and Prima.

Rice:

The categories are Basmati Rice and Basmati Rice-based ready-to-eat rice

meals. The brands are Gold Seal Indus Valley, Rozana and Annapurna.

Castor:

The categories are Castor Oil, Castor-oil based products, like hydrogenated

castor oil, 12 - Hydroxy Stearic Acid, Ricinoleic Acid (used in grease and

lubricant industry, paints and surface coatings, cosmetics, emulsifiers), and

Speciality Castor Oils (USP grade, BP grade, DAB 10) etc used in pharmaceutical

preparations. UNILEVER's Castor brand is Topsol.

Today, Exports is a substantial business in UNILEVER, accounting for about 12%

of the company's turnover. UNILEVER believes that its competitive advantages

of cost competitiveness, process competitiveness and economies of scale both

at the company and country level, hold it in good stead. They position the

company to become one of the hubs for sourcing by Unilever companies in HPC

and Tea, and also simultaneously become a preferred partner to global

customers in Marine Products, Castor and Rice.

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DIRECT SELLING:

Product Range• Lever home range• Male grooming• Oral Care• Ayurveda• Personal Wash• FoodsReach - 1400 towns (Largest in India)Consultant base - 330,000

ACCORDINGLY, UNILEVER'S AIMS ARE TO:

Ensure safety of its products and operations for the environment

by using standards of environmental safety, which are

scientifically sustainable and commonly acceptable.

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Develop, introduce and maintain environmental management

systems across the company to meet the company standards as

well as statutory requirements for environment. Verify

compliance with these standards through regular auditing.

Assess environmental impact of all its activities and set annual

improvement objectives and targets and review these to ensure

that these are being met at the individual unit and corporate

levels.

Reduce Waste, conserve Energy and explore opportunities for

reuse and recycle.

Involve all employees in the implementation of this Policy and

provide appropriate training. Provide for dissemination of

information to employees on environmental objectives and

performance through suitable communication networks.

Enctheirage suppliers and co-packers to develop and employ

environmentally superior processes and ingredients and co-

operate with other members of the supply chain to improve

overall environmental performance.

Work in partnership with external bodies and Government

agencies to promote environmental care, increase understanding

of environmental issues and disseminate good practice.

RESPONSIBILITIES

CORPORATE

The Board and the Management Committee of UNILEVER is

committed to conduct the company operations in an

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environmentally sound manner. The Management Committee

will:

Set mandatory standards and establish environmental

improvement objectives and targets for UNILEVER as a whole

and for individual units, and ensure these are included in the

annual operating plans.

Formally review environment performance of the company once

every quarter.

Review environment performance when visiting units and

recognise exemplary performance.

Nominate:

- A senior line manager responsible for environmental performance at

the individual UNILEVER site.

- UNILEVER environmental coordinator.

The Management Committee, through the nominated

environmental coordinator will:

Ensure implementation of UNILEVER Policy on environment and

compliance with Unilever and UNILEVER environmental

standards and the standards stipulated under relevant national /

local legislation. When believed to be appropriate, apply more

stringent criteria than those required by law.

Assess environmental impact of UNILEVER operations and

establish strategies for sound environment management and key

implementation steps.

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Enctheirage development of inherently safer and cleaner

manufacturing processes to further raise the standards of

environment performance.

Establish appropriate management systems for environment

management and ensure regular auditing to verify compliance.

Establish systems for appropriate training in implementation of

Environment Management Systems at work.

Ensure that all employees are made aware of individual and

collective responsibilities towards environment.

Arrange for expert advice on all aspects of environment

management.

Participate, wherever possible, with appropriate industry and

Government bodies advising on environmental legislation and

interact with national and local authorities concerned with

protection of environment.

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INDIVIDUAL UNITS

The overall responsibility for environment management at each

unit will rest with the Unit Head, who will ensure implementation

of UNILEVER Policy on environment at unit level. Concerned line

managers / heads of departments are responsible for

environmental performance at department levels.

In order to fulfill the requirements of the Environment Policy at

each site, the Unit Head will:

Designate a unit environment coordinator who will be

responsible for co-ordinating environmental activities at unit,

collating environmental statistics and providing / arranging for

expert advice.

Agree with the Management Committee Member responsible for

the unit, specific environmental improvement objectives and

targets for the unit and ensure that these are incorporated in the

annual objectives of the concerned managers and officers and

are reviewed periodically.

Ensure that the unit complies with Unilever and UNILEVER

mandatory standards and the relevant national and state

regulations with respect to environment.

Ensure formal environmental risk assessment to identify

associated environmental aspects and take appropriate steps to

control risks at acceptable levels.

Ensure that all new operations are subjected to a systematic and

formal analysis to assess environmental impact. Findings of such

exercises should be implemented prior to commencement of the

activity.

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Manage change in People, Technology and Facilities through a

planned approach based on training, risk assessment, pre-

commissioning audits and adherence to design codes.

Regularly review environment performance of the unit against

set objectives and targets and strive for continual improvement.

Sustain a high degree of environmental awareness through

regular promotional campaigns and employee participation

through training, safety committees, emergency drills etc.

Ensure dissemination of relevant information on environment

within the unit and to outside bodies, and regularly interact with

Government authorities concerned for protection of environment.

Maintain appropriate emergency procedures consistent with

available technologies to prevent / control environmental

incidents.

Provide appropriate training to all employees.

Ensure periodic audits to verify compliance with environment

management systems and personally carry out sample

environment audits to check efficacy of the systems.

Report environmental statistics to UNILEVER Corporate Safety &

Environment Group on a monthly basis.

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RESEARCH AND INNOVATION

CENTRES

Since most new products and processes are developed in these Units,

certain additional

responsibilities devolve on them to ensure implementation of the

Environment Policy of the company. In addition to the Unit Head's

responsibilities outlined above, the heads of these units will:

Ensure that a formal and systematic risk assessment exercise is

undertaken during the process/product development stage with

specific reference to environmental impact.

Transfer technology to the pilot plant and main production

through a properly documented process specification which will

clearly define environmental impact and risks associated with

processes, products, raw material and finished product handling,

transport and storage.

Ensure that treatment techniques are developed for any wastes

generated as a result of the new product/process and is

incorporated into the process specifications.

QUALITY POLICY:

Unileverconsiders quality as one of the principal strategic objectives to

guarantee its growth and leadership in the markets in which it

operates.

The company is committed to respond creatively and competitively to

the changing needs and aspirations of their consumers through

36

relentless pursuit of technological excellence, innovation and quality

management across their businesses, and offer superior quality

products and services that are appropriate to the various price points

in the market as well as to their commitment to building shareholder

value.

The company recognises that its employees are the primary stheirce of

success in its operations and is committed to training and providing

them the necessary tools and techniques as well as empowering them

to ensure broad base compliance of this policy in the organisation at all

levels.

The company is committed to fulfill its legal and statutory obligations

and international standards of product safety and hygiene and will not

knowingly sell product that is harmful to consumers or their

belongings. It will institute systems and measures to monitor

compliance in order to meet its responsibilities to consumers.

The company will maintain an open communication channel with its

consumers and customers and will carefully monitor the feedback to

continuously improve its products and services and set quality

standards to fulfill them. The company is committed to extend its

quality standards to its contract manufacturers, key suppliers and

service providers and by entering into alliances with them, to jointly

improve the quality of its products and services. This policy is

applicable to production from its own facilities as well as to production

that is outsourced.

The company will periodically review this quality policy for its

effectiveness and consistency with business objectives.

37

The company delegates authority and responsibility for dissemination

and implementation of this policy to each Business and Unit Head.

38

SAFETY AND HEALTH POLICY

Unileversupplies high quality goods and services to meet the daily

needs of consumers and customers. In doing so, the Company is

committed to exhibit the highest standards of corporate behavior

towards its consumers, employees, the societies and the environment

in which we operate.

Towards this, the Company recognizes its responsibility to ensure

safety and protection of health of its employees, contractors and

visitors in all its operating sites, which include manufacturing, sales

and distribution, research laboratories and offices during work and

work related travel.

This Policy document defines the vision, principles, aim, required

actions and scope of the policy application as well as the responsibility

for execution.

Vision

"Their vision is to be an injury free organization."

UNILEVER NEWS:”We will bring safety on top of mind for all

employees and will integrate it with all business processes. We will

realize their Vision through an Integrated Safety Management

approach, which focuses on People, Processes, Systems, Technology

and Facilities, supported by demonstrated leadership and employee

commitment at all levels as the prime drivers for ensuring a safe and

healthy work environment”.

39

SAFETY PRINCIPLES:

UNILEVER's Occupational Safety and Health Policy is based on and

supported by the following eight Principles.

These Principles have the same status as the Company's Code of

Business Principles:

All injuries and occupational illnesses are preventable

All operational exposures can be safeguarded

Safety evaluation of all business processes is vital

Working safely is a condition of employment

Training all employees to work safely is essential

Management audits are a must

Employee involvement is essential

All deficiencies must be reported and corrected promptly

In order to facilitate operationalisation of the Safety Principles, a

separate document has been prepared, which covers:

a) Safety Principles

b) Success Criteria

c) Illustrative KPI

CONSUMER SATISFACTION

40

Indira is 20 years old, a tribal woman at Kondegaon village in Bastar

district. She is just back from the nearby jungles, collecting firewood.

After attending to her baby son, she will go to the village well to take a

quick wash. Yesterday her husband brought her a white soap, with pink

petals in it. Indira had requested him to buy one, for the festival later

this evening.

Indira is among millions of consumers in rural India who use Hindustan

Lever's products. She came to know about Lux through the TV set at the

community centre. It is not very costly, and also available nearby.

Home to over 700 million people, rural India comprises not only over

70% of India's billion-strong population, but also over 12% of the world's

population. The rural population already accounts for substantial

consumption of Fast Moving Consumer Goods and also consumer

durables. About 50% of the sales of soaps & detergents are generated in

rural India. Similarly, almost half the demand for black & white television

sets, pressure cookers, table fans, sewing machines also comes from

there.

COST MANAGEMENT:

But the potential is even larger, both in terms of consumption and

penetration. The fact that 70% of the population accounts for only 50%

of even relatively well-penetrated categories, like soaps & detergents,

indicates the enormous scope of consumption-led growth in these

categories. Therefore such categories will derive growth out of increased

usage. In categories, which are relatively less penetrated, like personal

products, rural India offers an even bigger growth opportunity through

greater penetration and then consumption. For example only three out

of 10 consumers in rural markets use shampoo or skin care products.

Therefore growth in such categories will emerge, as more consumers

41

purchase these products, and then continue to use them regularly.

Hindustan Lever has taken many initiatives over the decades to create

markets in the rural hinterlands. By marketing relevant products, at

affordable prices.

A unique example is Hindustan Lever's Lifebuoy soap. In rural India,

health is of paramount importance, because indisposition is very directly

related to loss of income. Lifebuoy, whose core equity is health and

hygiene , has for decades now been synonymous with soap in rural

India.

At the same time, if products have to come up the order in the rural

purchase hierarchy, they have to be affordable. If rural India today

accounts for about half of detergents sales, it is because UNILEVER has

developed low-cost value-for-money branded products, like Wheel. The

company has also taken initiatives to create markets even for

apparently premium products, by offering them in pack sizes, like

sachets, whose unit prices are within the reach of rural consumers. For

example, initiated in the 1980s, sachets (Rs.2, Re.1, or 50 paise) today

constitute about 55% of Hindustan Lever's shampoo sales. With media

reach gradually increasing, rural consumers today, where the media has

its footprints, share the same aspirations with their urban counterparts.

UNILEVER has responded to the trend with low unit price packs of even

other products - Lux at Rs.5, Lifebuoy at Rs.2, Surf Excel sachet at

Rs.1.50, Pond's Talc at Rs.5, Pepsodent toothpaste at Rs. 5, Fair &

Lovely Skin Cream at Rs.5, Pond's Cold Cream at Rs.5, Brooke Bond

Taaza tea at Rs.5.

OTHER MARKETING STRATEGIES:

For decades now, Hindustan Lever has also taken initiatives to

circumvent the limitation in communication channels, by innovatively

leveraging non-conventional media. Among them are wall paintings,

42

cinema vans, weekly markets (haat), fairs and festivals. Given the rural

consumer's fascination for cinema, the cinema vans show popular

movies, interspersed with products advertisements. Weekly markets,

fairs and festivals are parts and parcel of rural life. They give an

opportunity to address consumers, spread over many tiny hamlets, at

one location. The occasions are used to demonstrate product benefits

and also sell such products. Such demonstrations have played a

significant role in creating, for example, the detergents market in rural

India. In recent times, such demonstrations are being deployed to

illustrate how visible clean is not hygienic clean, and how using soap is

essential to prevent easily avoidable infections.

Communication through fairs and festivals are backed by direct

consumer contact. For example, in 1998-99, Hindustan Lever

implemented a major direct consumer contact, called Project Bharat,

which covered 2.2 crore homes. Each home was given a box, at a

special price of Rs.15, comprising a low unit price pack of shampoo,

talcum powder, toothpaste and skin cream, along with educational

leaflets and audio-visual demonstrations. The project has helped

eliminate barriers to trial, and has strengthened salience of both

particular categories and brands. Similarly in 2002, Hindustan Lever has

launched a similar large-scale direct contact, called Lifebuoy Swasthya

Chetana, which already covers 70 million people in 18,000 villages of 8

states. The project is intended at generating awareness about good

health and hygiene practices, and specifically how a simple habit of

washing hands is essential to maintaining good health. The initiative will

involve interaction with students and senior citizens, who act as change

agents.

AVAILABILITY OF UNILEVER’S PRODUCT:Generating awareness pays dividends only when steps are taken to

ensure constant availability of products. In rural India particularly,

availability determines volumes and market share, because the

43

consumer usually purchases what is available at the outlet, influenced

very largely by the retailer.

Therefore, over the decades, Hindustan Lever has progressively

strengthened its distribution reach in rural India, which today has about

33 lakh outlets. Direct rural distribution in Hindustan Lever began with

the coverage of villages adjacent to small towns. The company's

stockists in these towns were made to use their infrastructure to

distribute products to outlets in these villages. But this distribution mode

could only be extended to villages connected with motorable roads, and

it could cover about 25% of the rural population by 1995.

Therefore in 1998, Hindustan Lever launched Project Streamline to

further extend its distribution reach. Under this initiative, the company

identifies sub-stockists in a large village, connected by motorable road

to a small town. This sub-stockist in turn distributes the company's

products to outlets in adjacent smaller villages using transportation

suitable to interconnecting roads, like cycles, scooters or the age-old

bullock cart. Hindustan Lever is thus trying to circumvent the barrier of

motorable roads. As a result, the distribution network, as of now, directly

covers about 50,000 villages, reaching about 250 million consumers.

The company simultaneously uses the wholesale channel, suitably

incentivising them to distribute company products.

UNILEVER has in the recent past established a common distribution

system in rural areas for all its products. Given the number of brands

and their packs the rural retailer usually requires, one UNILEVER

representative can take all the products from the company portfolio that

he needs. This common distribution system is now fully operational,

under one Regional Sales Manager exclusively dedicated to rural

markets of each region of the country.

Over time, Hindustan Lever will further strengthen its rural distribution

through mutually beneficial alliances with rural Self Help Groups (SHGs).

44

Over the last five years, financial institutions, NGOs and government

organisations are working closely to establish SHGs, whose objective is

to alleviate poverty through sustainable income-generating activities.

Since 2001, Hindustan Lever is implementing Project Shakti, whereby

SHGs are being offered the option of distributing relevant products of

the company as a sustainable income-generating activity. The model

hinges on a powerful win-win relationship; the SHG engages in an

activity which brings sustainable income, while Hindustan Lever gets an

interface to interact and transact with the rural consumer. UNILEVER's

vision for Project Shakti is to scale it up across the country by 2005,

creating about 25000 Shakti entrepreneurs, covering 100,000 villages,

and touching the lives of 100 million rural consumers. Begun with 50

groups in Nalgonda district of Andhra Pradesh, with the support of local

authorities, the project has been extended, as of now, to about 50,000

villages in 12 states. A typical Shakti entrepreneur conducts business of

around Rs.10,000 - Rs 15,000 per month, which gives her an income of

about Rs 700 - Rs.1000 per month on a sustainable basis. As most of

these women are from below the poverty line, and live in extremely

small villages (less than 2000 population), this earning is very

significant, and is almost double of their past household income. The full

benefit of Project Shakti will be realised after some years.

UNILEVER DISTRIBUTION NETWORK

45

MANUFACTURING UNITS ALL ACROSS INDIA

C&F 1 C&F 2 C&F 3 C&F 4 C&F 5 C&F 6 C&F 7

STOCKISTSSTOCKISTS STOCKISTS STOCKISTS STOCKISTS STOCKISTS STOCKISTS

WHOLESALERS

RETAILERS

CUSTOMERS

This is the whole Distribution Chain of UNILEVER to cover the Rural market. The company have remarkably worked upon to make the supply chain from manufacturers to retailers simple with very few number of mediators and jobbers. It has helped them to maintain the transparency in the cycle and also have let them established a prompt delivery process. The products are manufactured in the factories all across India and then is supplied from there to the various Carriage and Forwarding (C&F) units which are 5-10 per state depending on the area they have to cover and are established by the company. These C&F units then supply the products to the various Wholesalers confined to their area only and according to the wholesalers demand. The wholesalers then supply the products to the semi-wholesalers and the retailers as per the volume of their order. Then the semi-wholesalers deliver the products to the retailers and customers.

STAGE 1-

46

MANUFACTURER

C&F

In this stage the products reach to the Carriage and Forwarding unit from various manufacturing units established all across India. The volume of the delivery depends upon the quantity required/ordered by the C&F unit. The depot sends the request of the volume of the products to the Head Office, which then order the various factories to supply the products to the mentioned depot. The supply is met within a week. UNILEVER has 45 C&F’s with 7000 stockists and 2000+ suppliers and associates to target the market.

STAGE 2-

The C&F then supplies the products according to the demand of various wholesalers. Each of the depot cover a region assigned to them.Each C&F acquires 5-7 trucks and hire 4-5 more trucks to supply products everyday.They work on the concept of advance payment by DD by the wholesalers and deposit them in the bank which is transferred to the head office.

NATION WIDE MANUFACTURING:

80 factories, across India

The year was 1923. Lord Leverhulme, the legendary founder of Lever

Brothers, was visiting India. The nationalist sentiment in India was for

47

C&F

WHOLESALERS

locally manufactured products. Lord Leverhulme, who believed that

what is good for a country is equally good for the company, responded

to that aspiration because he too shared that dream.

His dream ultimately was realised in 1934. In September 1934, after

more than a decade of discussions in London and in India, a Lever

factory was allowed to sprout on the land that had been reclaimed by

the Bombay Port Trust at Sewri. From here, a month later rolled out the

first cake of Sunlight soap to be manufactured in India. The same year,

Lever Brothers took over the Garden Reach Factory in Kolkata.

These two factories were the first in a manufacturing base, which today

literally dots the length and breadth of India. From Assam to Gujarat,

from Uttaranchal to Kerala.

Hindustan Lever's diverse product range is today manufactured in about

80 factories. In addition, the company outsources from 150 other units.

The operations involve 2,000 suppliers and associates.

DEVELOPING BACKWARD AREAS

Several UNILEVER factories are situated in backward areas. The

company has consciously responded to the national policy of

development of backward areas by setting up manufacturing units in

these places, which provide several direct and indirect employment

opportunities for these areas, and leads to general economic

development of these regions through industrialisation. In fact, all major

investments of UNILEVER, in recent years, have been either in A-

Category backward areas or No-Industry Districts. These include

factories in Khamgaon and Yavatmal (Maharashtra), Chhindwara

(Madhya Pradesh), Orai, Sumerpur and Khalilabad (Uttar Pradesh),

Haldia (West Bengal), Silvassa (Dadra & Nagar Haveli), Pondicherry,

Goa, Doom Dooma (Assam), Haridwar (Uttaranchal) and Barotiwala

48

(Himachal Pradesh). Since 2001 itself, UNILEVER has set up nine new

factories in backward areas.

Equally, UNILEVER has an enviable track record in taking over sick

enterprises, in response to requests from Government, and converting

them into viable operations. The company's units at Mangalore and

Rajpura all bear testimony to this achievement. In the process,

UNILEVER has saved precious jobs and developed local economies.

UNILEVER's manufacturing facilities, like the Khamgaon soap plant and

the Sumerpur detergent bar unit, are recognised as among the best in

the Unilever world.

UNILEVER has adopted Total Productive Maintenance (TPM) for achieving

manufacturing excellence since 1994. As on date, TPM is in different

stages of implementation in 28 factories. Four UNILEVER factories have

already received the TPM Consistency Award, and 14 factories have

been awarded with the TPM Excellence Award.

MARKETING NEEDS EVERY WHERE

How do you ensure that Mr. Ramesh in Kanyakumari gets his Lifebuoy

soap and Mrs. Kulkarni in Jammu gets to know how Bru coffee tastes

even before she has bought it? Well, you need to have a cutting edge

distribution network in place.

Hindustan Lever's distribution network is recognised as one of its key

strengths. Its focus is not only to enable easy access to our brands, but

also to touch consumers with a three-way convergence - of product

availability, brand communication, and higher levels of brand

experience.

49

UNILEVER's products, manufactured across the country, are distributed

through a network of about 7,000 redistribution stockists covering

about one million retail outlets. The distribution network directly covers

the entire urban population.

The general trade comprises grocery stores, chemists, wholesale,

kiosks and general stores. Hindustan Lever services each with a tailor-

made mix of services. The emphasis is equally on using stores for

direct contact with consumers, as much as is possible through in-store

facilitators.

AT THE SUPERMARKETS

Self-service stores and supermarkets are fast emerging in metros and

large towns. To service modern retailing outlets in the metros,

UNILEVER has set up a full-scale sales organisation, exclusively for this

channel. The business system delivers excellent customer service,

while driving growth for the company and the store. At the same time,

innovative marketing initiatives are taken to provide consumers with

experience of our brands at the store itself, through product tests and

in-store sampling.

IN THE VILLAGES

UNILEVER has also revamped its sales organisation in the rural

markets to fully meet the emerging needs and increased purchasing

power of the rural population. The company has brought all markets

with populations of below 50,000 under one rural sales organisation.

The team comprises an exclusive sales force and exclusive

redistribution stockists, under the charge of dedicated managers. The

team focuses on building superior availability, while enabling brand

50

building in the deepest interiors. UNILEVER's distribution network in

rural India already directly covers about 50,000 villages, reaching

about 250 million consumers, through about 6000 sub-stockists.

HARNESSING INFORMATION TECHNOLOGY

An IT-powered system has been implemented to supply stocks to

redistribution stockists on a continuous replenishment basis. The

objective is to catalyse UNILEVER's growth by ensuring that the right

product is available at the right place in right quantities, in the most

cost-effective manner. For this, stockists have been connected with the

company through an Internet-based network, called RSNet, for online

interaction on orders, despatches, information sharing and monitoring.

RS Net covers about 80% of the company's turnover. Today, the sales

system gets to know every day what UNILEVER stockists have sold to

almost a million outlets across the country. RS Net is part of Project

Leap, UNILEVER's end-to-end supply chain, which also includes a back-

end system connecting suppliers, all company sites and stretching

right upto stockists.

51

SHAKTI - CHANGING LIVES IN RURAL INDIA

Shakti is UNILEVER's rural initiative, which targets small villages with

population of less than 2000 people or less. It seeks to empower

underprivileged rural women by providing income-generating

opportunities, health and hygiene education through the Shakti Vani

programme, and creating access to relevant information through the

iShakti community portal.

In general, rural women in India are underprivileged and need a

sustainable source of income. NGOs, governmental bodies and other

institutions have been working to improve the status of rural women.

Shakti is a pioneering effort in creating livelihoods for rural women,

organised in Self-Help Groups (SHGs), and improving living standards

in rural India. Shakti provides critically needed additional income to

these women and their families, by equipping and training them to

become an extended arm of the company's operation.

Started in 2001, Shakti has already been extended to about 80,000

villages in 15 states - Andhra Pradesh, Karnataka, Tamilnadu,

Maharashtra, Gujarat, Madhya Pradesh, Chattisgarh, Uttar Pradesh,

Rajasthan, Punjab, Haryana, West Bengal, Orissa, Bihar & Jharkhand.

The respective state governments and several NGOs are actively

involved in the initiative.

Shakti already has about 25,000 women entrepreneurs in its fold. A

typical Shakti entrepreneur earns a sustainable income of about

Rs.700 -Rs.1,000 per month, which is double their average household

income. Shakti is thus creating opportunities for rural women to live in

improved conditions and with dignity, while improving the overall

standard of living in their families. In addition, it involves health and

52

hygiene programmes, which help to improve the standard of living of

the rural community. Shakti's ambit already covers about 15 million

rural population. Plans are also being drawn up to bring in partners

involved in agriculture, health, insurance and education to catalyze

overall rural development.

UNILEVER's vision for Shakti is to scale it up across the country,

covering 100,000 villages and touching the lives of 100 million rural

consumers by 2005.

Shakti Vani is a social communication programme. Women, trained in

health and hygiene issues, address village communities through

meetings at schools, village baithaks, SHG meetings and other social

fora. In 204, Shakti Vani has covered 10,000 villages in Madhya

Pradesh, Chattisgarh and Karnataka. The vision is to cover 80,000

villages in 2005.

iShakti, the Internet-based rural information service, has been

launched  in Andhra Pradesh, in association with the Andhra Pradesh

Government's Rajiv Internet Village Programme. The service is now

available in Nalgonda, Vishakapatnam, West Godavari and East

Godavari districts. iShakti has been developed to provide information

and services to meet rural needs in medical health and hygiene,

agriculture, animal husbandry, education, vocational training and

employment and women's empowerment. The vision is to have 3,500

kiosks across the state by 2005.

53

PIONEERING NEW CHANNELS

Hindustan Lever is simultaneously creating new channels, designed on

the same principle of holistic contact with consumers.

Project Shakti, UNILEVER's partnership with Self Help Groups of rural

women, is becoming an extended arm of the company's operation in

rural hinterlands. Started in 2001, Project Shakti has already been

extended to about 50,000 villages in 12 states - Andhra Pradesh,

Karnataka, Gujarat, Madhya Pradesh, Tamil Nadu, Chattisgarh, Uttar

Pradesh, Orissa, Punjab, Rajasthan, Maharashtra and West Bengal. The

respective state governments and several NGOs are actively involved

in the initiative. The SHGs have chosen to partner with UNILEVER as a

business venture, armed with training from UNILEVER and support

from government agencies concerned and NGOs.

Hindustan Lever Network (HLN) is the company's arm in the Direct

Selling channel, one of the fastest growing in India today. It already

has about 3.5 lakh consultants - all independent entrepreneurs, trained

and guided by HLN's expert managers. HLN has already spread to over

1500 towns and cities, covering 80% of the urban population, backed

by 42 offices and 240 service centres across the country. It presents a

range of customised offerings in Home & Personal Care and Foods.

Out-of-Home consumption of products and services is a growing

opportunity in India, as elsewhere in the world. Hindustan Lever is

already the largest player in the hot beverages out-of-home segment,

with over 15000 tea and coffee vending points. The company is

expanding the network aggressively, in the education, entertainment,

leisure and travel segments. UNILEVER's allaince with Pepsi will

significantly strengthen this channel.

54

Health & Beauty Services are Hindustan Lever's simultaneous foray to

meet the increasing consumer need for such products and services.

Lakme Salons provide specialised beauty services and solutions, under

the recognised authority of the Lakme brand. The Ayush Therapy

Centres provide easy access to authentic Ayurvedic treatments and

products.

Hindustan Lever, which once pioneered distribution in India, is today

reinventing distribution - creating new channels, and redefining the

way current channels are serviced. In the process it is converging

product availability, with brand communication and brand experience.

NOVEL PRODUCT NEW PROCESS

Hindustan Lever's mission is to meet everyday needs for nutrition,

hygiene, and personal care, with brands that help people feel good,

look good and get more out of life. UNILEVER's research &

development base, one of the largest in Indian industry, helps achieve

this mission, with novel products and new processes. The company has

over 380 patents, demonstrating its leading edge in consumer-relevant

R&D.

The Hindustan Lever Research Centre (HLRC), with facilities in Mumbai

and Bangalore, and global technology centres in India have over 200

highly qualified scientists and technologists, many with post-doctoral

experience acquired in the US and Europe. Set up in 1958, HLRC's aim

is to develop new products and processes, improving benefits and

quality of existing products, and optimal use of resources.

Major innovations have taken place, down the decades, in every

category in which UNILEVER is present. From Home Care to Personal

care, Beverages to Foods.

55

BETTER CLEANING, LESSER WATER CONSUMPTION

Consider for example, UNILEVER's development of a water-saving

technology for its detergents. One of the most severe problems that

India faces today is shortage of water. Water scarcity affects one in

every three Indians. In a typical Indian home, at least 20% of the water

consumed goes behind washing of clothes. UNILEVER decided that it

would be of immense benefit to an Indian household, if a technology

could be developed, which would help reduce water consumed in

washing of clothes. UNILEVER's scientists have innovated a path-

breaking technology - it reduces water consumption and time taken for

rinsing by 50%. The technology has already been introduced.

WORLD'S MOST ADVANCED WATER PURIFIER

People in cities and towns spend enormous amounts, either in fuel or

devices, to ensure safe drinking water. UNILEVER's scientists have

developed a breakthrough device, called "Pureit", which purifies water

as safe as boiled water, providing 100% protection from all water-

borne diseases; it also removes pesticides that may be present in

drinking water. Its operation does not require electricity, running tap

water and plumbing or expensive maintenance. It thus provides water

at a cost of just Re.1 for every six litres - or less than 20 paise a litre.

IODINE IN SALT - THE VITAL INGREDIENT

Iodine, it is well-known, is important for the mental development of

young children. Iodised salt is a well-accepted mode of ensuring

appropriate iodine intake. Yet Iodine added to salt is lost in transport,

storage as well as in the process of cooking. UNILEVER scientists have

developed a patented breakthrough technology to stabilise iodine in

salt, following work on the stability of iodine under Indian conditions of

storage and cooking. The technology has made it possible to actually

56

realise the purpose of iodised salt - that people get appropriate iodine

intake through the food they eat.

TECHNOLOGY OF SKIN LIGHTENING

Research in the biology of skin pigmentation has led to the formulation

of a product like Fair & Lovely Skin Cream and Lotion. The product has

been periodically updated through new patented actives. It has now

become a global success through exports to over 30 countries. The

product is equally used by the local population of these countries,

apart from those of Indian origin.

UNILEVER has equally developed new processes.

In-house machine development

The company has the capability to design and manufacture machines

in-house. This enables the company to set up plants at half the cost of

others. Such technological developments have also led to significant

improvement in productivity.

ENERGY CONSERVATION

In the past, one of the most significant breakthroughs of UNILEVER's

research initiative has been the development of a technology to use

non-conventional forest seed oils for soap-making which, since the

1970s, has helped save around $1.2 billion in foreign exchange.

UNILEVER had received the Government of India's prestigious award

for import substitution. Development of Structurant Technology for

soap manufacturing also helped save costly conventional oils without

any compromise on product performance and quality. The latest

technology to produce Distilled Fatty Acid for soap making and the

resultant plant capacity expansion has drastically brought down

specific energy consumption while improving distillation yields. The

57

evolution of continuous soap processing technology has also reduced

energy consumption.

UNILEVER believes that technology is critical to delight consumers.

Creative application of technology has made Hindustan Lever

successful in launching products and services, which raise the quality

of life.

HELPING HANDS:

UNILEVER COMMITS Rs. 8 CRORES FOR IMMEDIATE RELIEF,

REHABILITATION TO TSUNAMI-HIT COMMUNITIES

Unilevertoday announced to commit, a total outlay of Rs.8 crores for

immediate relief and helping people to rehabilitate themselves so that

they can resume their livelihood, in the tsunami-hit areas of

Pondicherry, Tamil Nadu and Kerala. Of this, Rs.5 crores (absolute

value terms) is being utilized for distribution of the Company's

nutritional & personal hygiene products for immediate relief to the

needy. Another Rs.3 crores will be raised partly by contributions from

company employees and the balance contribution from the Company

to be used in collaboration with NGOs working with the community to

provide the people, notably fishermen, with means of livelihood and

help them back on their feet.

Since December 26, employees of UNILEVER factories and offices in

Pondicherry, Tamil Nadu and Kerala have been providing necessary

relief to the tsunami-hit people. The relief operations include,

distribution of bread and biscuits to over 2000 families in Pondicherry,

12,000 cooked meals for families in Chennai, Nagapattinam, Cuddalore

and Andamans. Over 12,000 dry relief packs, comprising of Company's

dry rations and personal hygiene products have already been

distributed.

58

UNILEVER's employees are donating a day's salary, matched equally

by the Company for exclusive use in rehabilitation.

The biggest concern is, that people/ fishermen have lost their means of

livelihood. UNILEVER plans to focus its rehabilitation efforts to restore

their means of livelihood so that the local communities can quickly get

back to their lives at the earliest.

UNILEVER has always been a front runner in its call for national duty

and caring for the community. Its employees not only donate

generously, but volunteer to take part in relief operations by

committing their time and physical effort. This is in line with our

corporate value of “care” and our CSR mission which has become an

integral part in our way of doing business.

Earlier during the Gujarat earthquake, UNILEVER had adopted and

reconstructed a new village, Yashodadham, in Bhachau Taluka of Kutch

district. Yashodadham, spread over 25 acres, comprises 289 homes,

school building, an exclusive playground for children and a multi-

purpose community centre, including an anganwadi (creche), health

centre, community room and panchayat office, an underground

reservoir and an overhead tank for water. All the dwelling units have

electricity, and piped water and are now fully occupied.

UNILEVER is India's largest Fast Moving Consumer Goods company,

touching the lives of two out of three Indians. UNILEVER’s mission is to

“add vitality to life" through its presence in over 20 distinct categories

in Home & Personal Care Products and Foods & Beverages. The

company meets everyday needs for nutrition, hygiene, and personal

care, with brands that help people feel good, look good and get more

out of life.

59

SPECIAL EDUCATION & REHABILITATION

Under the Happy Homes initiative, UNILEVER supports special

education and rehabilitation of children with challenges.

ASHA DAAN:

The initiative began in 1976, when UNILEVER supported Mother Teresa

and the Missionaries of Charity to set up Asha Daan, a home in Mumbai

for abandoned, challenged children, and the destitute. Subsequently,

Asha Daan has also become a home to the HIV-positive. The objective

in supporting Asha Daan was and continues to be to share the

organsation's prosperity in supporting the Mother's mission of serving

the "poorest of the poor". Asha Daan has been set up on a 72,500-

square feet plot belonging to UNILEVER, in the heart of Mumbai city.

UNILEVER bears the capital and revenue expenses for maintenance,

upkeep and security of the premises. The destitute and the HIV-

positive are provided with food, shelter and medication for the last few

days of their lives. The needs of the abandoned challenged children

are also met through special classes of basic skills, physiotherapy and,

if possible, corrective surgery. At any point of time, it takes care of

over 300 infants, destitute men and women and HIV-positive patients.

Over the years, UNILEVER has opened schools for challenged children

with a sharper objective of supporting families of such children, helping

the children become self-reliant by learning appropriate skills to be

productive members of the household.

ANKUR:

In 1993, UNILEVER's Doom Dooma Plantation Division set up Ankur, a

centre for special education of challenged children. The centre takes

care of children with challenges, aged between 5 and 15 years. Ankur

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provides educational, vocational and recreational activities to over 35

children with a range of challenges, including sight or hearing

impairment, polio related disabilities, cerebral palsy and severe

learning difficulties. These physically and mentally challenged children

are taught skills, such as cookery, painting, embroidery, bamboo

crafts, weaving, stitching, etc depending on their aptitudes. The centre

has rehabilitated 10 children, including self-employment for 6 children

by providing them with shops, and 3 girls have been provided

employment as creche attendants. It has also moved to normal schools

18 children. Since inception it has covered about 80 children. Ankur

received the Lawrie Group Worldaware Award for Social Progress in

1999 from HRH Princess Royal in London.

KAPPAGAM:

Encouraged by Ankur's success, Kappagam ("shelter"), the second

centre for special education of challenged children, was set up in 1998

on UNILEVER Plantations in South India. It has 17 children. The focus of

Kappagam is the same as that of Ankur. The centre has 17 children,

being taught self-help skills, useful vocational activities like making of

paper covers, greeting cards, wrapping papers, fancy stationery,

napkins, brooms made out of coconut leaves, candles, and also some

home care products. About 12 of the children have become relatively

self-reliant by earning through crafts learnt at the centre. Since

inception, it has covered about 28 children.

ANBAGAM:

Yet another day care center, Anbagam ("shelter of love"), has been

started in 2003 also in the South India Plantations. It takes care of 11

children. Besides medical care and meals, they too are being taught

skills such that they can become self-reliant and elementary studies.

Over 20,000 individuals have benefitted from the Happy Homes

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initiatives since inception. UNILEVER is wholeheartedly involved with all

four centres and will continue to be involved in the future.

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UNILEVER–

DECEMBER QUARTER 2005 RESULTS

Total Sales grow by 14.4%; FMCG Sales growth at 15.8%

HPC and Foods grow by 17% and 9% respectively; Broad based

growth across categories

PBIT grows 13.5%; Net Profit increases by 56%

EPS for 2005 grows 17.6%; Final Dividend Rs 2.50 per share of Re

1/- each; Total Dividend Rs 5.00 per share for 2005

Unileverannounced its results for December Quarter 2005. Growth

momentum achieved in the last three quarters has been sustained

with total sales growing by 14.4%. Domestic FMCG sales were higher

by 15.8% with both Home and Personal Care (HPC) and Foods

performing well.

HPC business grew by 17.3% driven by strong performance in all

categories. Significant sales growth was achieved in the highly

competitive categories of Laundry and Shampoo. Soaps recorded good

growth, with Lux growing handsomely reflecting in market share gains.

All the brands in Skin category maintained their strong performance

leading to a double digit growth for the category. Consumer relevant

innovations continue to drive off-take and key innovations during the

quarter include the re-launch of “Thick and Strong” Sunsilk Pink, Lux

variants for the 75-year celebrations, and the national launch of

“Jasmine Fresh” Rin Advanced Powder.

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In Foods business, Tea achieved a modest growth despite a declining

market and falling commodity prices; Coffee continued to perform well.

Processed Foods business grew strongly, albeit on a low base. The

Icecream business also achieved a 33% increase in sales, led by the

impulse category. Relaunch of Knorr soup with a superior mix and

introduction of new variants was the key Foods innovation during the

quarter.

Profit before Interest and Taxes (PBIT) increased by 13.5% after

absorbing a 50% higher spend in Advertising and Promotions. Higher

crude oil price led cost pressures continued, particularly in Laundry

category, but were mitigated by aggressive cost effectiveness

programs. Profit after tax (PAT) grew by 22.7% due to a lower effective

tax rate and Net profit, including the impact of exceptional items was

higher by 56%.

The total sales were 11.4% higher than in the previous year, with

broad based growth across categories leading to both HPC and Foods

businesses growing by 14% and 8%, respectively. Judicious price

increases coupled with robust cost saving initiatives partly neutralised

the impact of both cost escalations, particularly in the Laundry

category, and the higher investments behind brands. Consequently,

PBIT increased by 1.1%. A lower tax charge for the year resulted in a

PAT growth of 12.9%. Net Profit and Earnings Per Share at Rs 6.40,

grew by 17.6%.

Mr Harish Manwani, Chairman commented: “We have sustained the

growth momentum in December quarter and it continues to be broad

based across HPC and Foods categories, particularly, in the

competitive categories of Laundry and Shampoo. This was driven by

higher investment behind our brands with exciting innovations,

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excellent activation, new initiatives in Customer Management and with

significantly higher levels of A&P spends. The double digit sales

growth of over 11% for the year 2005 has been achieved after a gap of

six years.

Our strategic priority remains unchanged. We will continue to leverage

our focused portfolio of powerful brands to sustain market leadership

and grow our market position across strategic brands and categories.

In a competitive landscape, we shall continue to deliver consumer

value and invest behind our brands. We recognize the challenge of

inflationary cost pressures driven by crude oil prices and, in the

competitive context, achieving cost leadership across the extended

supply chain continues to be a key priority.”

DIVIDEND

The Board of Directors at their meeting held on February 14th, 2006

has proposed a final dividend of Rs 2.50 per share of Re 1 each,

subject to the approval of the shareholders at the annual general

meeting. This along with the interim dividend of Rs 2.50 per share

amounts to a total dividend of Rs 5.00 per share for the year 2005.

UNILEVER is India's largest Fast Moving Consumer Goods company,

touching the lives of two out of three Indians. UNILEVER’s mission is

to “add vitality to life” through its presence in over 20 distinct

categories in Home & Personal Care Products and Foods & Beverages.

The company meets everyday needs for nutrition, hygiene, and

personal care, with brands that help people feel good, look good and

get more out of life.

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UNILEVER TRANSFERS TEA ESTATES INDIA TO

MAXWELL GOLDEN TEA PRIVATE LIMITED

Unileverhas transferred its entire shareholding in its 100% subsidiary

Tea Estates India Limited (TEIL) to Maxwell Golden Tea Private Limited

(MGT), a Woodbriar Group company on March 1, 2006. TEIL owns 8 tea

estates and 6 factories for processing tea in the high-yielding belt of

Tamilnadu with an average annual output of approx. 10,500 metric

tons.

Woodbriar Group has interests in plantations, insurance services and

real estate. The Group’s gardens are spread across the premium tea

growing regions in Tamilnadu and Kerala. UNILEVER management

believes that the proposed transfer to Woodbriar Group is in the best

interest of the tea plantation business and all its stakeholders. Existing

terms and conditions of services of all TEIL employees will be fully

protected in accordance with applicable laws and terms of their

employment.

The acquisition of TEIL by Woodbriar Group will provide scale and bring

in synergy benefits to Woodbriar Group, as a large portion of TEIL

gardens are contiguous to the existing tea gardens of Woodbriar

Group. Canara Bank, Madurai Circle has funded the debt component to

Woodbriar Group for this acquisition.

With this disposal of shareholding in TEIL, UNILEVER has completed its

exit from its tea plantations business both in South India and Assam. It

may be recalled that UNILEVER had sold its interests in Rossell

Industries Limited and Doom Dooma Tea Company Limited in Assam

during the last 12 months.

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DSP Merrill Lynch Limited acted as financial advisor to Unilever.

ABOUT UNILEVER:

UNILEVER is India's largest Fast Moving Consumer Goods Company,

touching the lives of two out of three Indians. UNILEVER's mission is to

"add vitality to life" through its presence in over 20 distinct categories

in Home & Personal Care Products and Foods & Beverages. The

company meets everyday needs for nutrition, hygiene, and personal

care, with brands that help people feel good, look good and get more

out of life. For more information visit www.Unilever.com

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COMPETITORS

THE PROCTER & GAMBLE COMPANY COMPANY

PROFILE

The Procter & Gamble Company (P&G) is a brand behemoth. The

world's #1 maker of household products courts market share and

billion-dollar brands. P&G's products fall into three categories:

global beauty care; global health, baby, and family care; and

global household care. It also makes pet food and water filters

and produces soap operas (As the World Turns). More than 20 of

P&G's brands are billion-dollar sellers (including Actonel,

Always/Whisper, Bounty, Charmin, Crest, Downy/Lenor, Folgers,

Iams, Olay, Pampers, Pantene, Pringles, Tide, and Wella).

Acquisitive P&G bought Clairol in 2001 and a majority of Wella in

2003. Its purchase of Gillette in late 2005 was its biggest buy in

company history.

FINANCIAL HIGHLIGHTS

Fiscal Year End: June

Revenue (2007): 56741.00 M

Revenue Growth (1 yr): 10.40%

Employees (2007): 110,000

Employee Growth (1 yr): 0.00%

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RESEARCH METHODOLOGY

The section includes the overall research design, the sampling

procedure, the data collection method, the field method, and analysis

and procedure.

Research design:-

For this research project exploratory method is using

DATA COLLECTION METHOD:-

The data collect for the research can be classified as primary data and

secondary data.

Primary data is by visiting existing customer and expected customer of

Unilever. And making them fill up the questionnaire

Secondary data is from internet, books, magazine etc.

RESEARCH INSTRUMENT

The instrument use for data collection is structured questionnaire.

Question is open and close ended depending upon the information that

needed to be elicited. I am also using the scaling technique to assess

the attitude of the customer.

Sampling plan:-

Keeping all the constrains in mind a sample size of 100 people .The

sampling procedure is systematic sampling

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FUTURE SCOPE

The Indian FMCG market currently appears to be at a crossroads, and

UNILEVER are attempting to change customer perceptions of their

brands and where specific buying motivations appear to be replacing

generalities.

This meanwhile, is quite unlike the west where buyers consider

aesthetics, comfort and safety, not necessarily in that order, before

finalising a purchase. “It’s smarter to think about emotions and

attitudes, if marketers are to do a better job of marrying what a

UNILEVER offers to the consumer’s image of the offerings. Another

important outcome of the research is the believability of the claims.

Most of the claims are realistic and easy to understand. Most of the

people don’t understand the quality claims by UNILEVER.

The mindset of the Indian consumer is such that he is delighted if he

buys a pen a little cheaper than his neighbour. Things are, however,

slowly changing and customers at the upper end of the market are now

ready to pay more for more. I hope that this approach will soon enter

the new era, maybe not with the same intensity .

“Success will largely be determined to the extent a company

can differentiate itself in terms of intangibles that go with a Product”.

Thus, success could well hinge on the best of bundle of services that

UNILEVER provides.UNILEVER grew from zero to the 2,268 Million $,

mark and the number One FMCG company in India this year. Looking

at the present scenario it can be said that though there is lot of

competition in the market but UNILEVER is picking up well. The

landmark achievement comes in 74 years in India after clinching its

first overseas sale.

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FINDINGS, DATA ANALYSIS AND CONCLUSIONS WHEN COMPARED WITH PROCTER AND GAMBLE LTD.

Findings

On the basis of research, we found that there is a nominal difference in the efficiency of Unilever. vis-à-vis Procter and Gamble Ltd. I have reached to this conclusion on the basis of following findings. They are as follows.

PRODUCT LINE

Unilever

UNILEVER Home & Personnel Care

> In personal Wash they have Lux , Lifebuoy, Liril, Hamam, Breeze, Dove, Pears and

Rexona .

In Laundry they have Surf Excel, Rin and Wheel. In skin care their brands are Fair N Lovely and Ponds.

In hair Care they have Sunsilk Naturals and Clinic All clear.

In Oral Care their brands are Pepsodent and Close-up.

In Deodorants they have Axe and Rexona.

In Colour Cosmetics they have Lakeme.

In Ayurvedic Personal And Health Care they have Ayush.

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Foods

In tea they have the brand name brook bond and lipton. In coffee they have bru.

In foods they have kissan and kinnor annpuran.

In ice creams they have the kwality walls.

Water

Unilever has launched pueit, the most advanced in home water

purifier in the world.

Procter and Gamble P&G Hygiene and Health care ltd. markets several leading brands: Whisper sanitary napkins in the Feminine Hygiene category; Health care products such as Vicks VapoRub, vicks action 500, Vicks Cough Drops, Vicks Inhaler; skin care and cosmetic products viz. Old Spice.

P&G Home Products Ltd. markets several leading brands. In Fabric Care P&G has two of its world leading detergents Tide and Ariel, in Hair Care they have Pantene Pro V, Head & Shoulders and Rejoice. In Baby Care they have Pampers.

CONCLUSION- As Unilever has more brands in its basket then Procter and gamble so it is more close to common man and touching his or her daily life in a more comprehensive manner.

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DEALERS

While choosing the dealers UNILEVER mainly emphasizes on the ‘market potential of that area, dealer’s financial position, and dealers back ground (previous business), present business, goodwill and risk taking capabilities ,by the good responsibility of the dealer.

PROCTER AND GAMBLE

There is no difference as such in the process of selection of dealers in Procter and Gamble also. Like UNILEVER, P&G also considers dealer’s financial position; present business, goodwill and risk taking capabilities.

Finally, Dealers of UNILEVER are satisfied by the companies support in there sales because the company provides them with various schemes and discounts, whereas satisfaction of P&G dealers lies in good promotional activities, advertisement and the flexibility that the company provides them. According to the senior officials of P&G it was found that it’s a volume based company, hence all the above stated parameters helps the dealer to attract more and more customers.

MODE OF TRANSPORTATION

Unilever; UNILEVER uses modified trucks and rails to deliver the products from various production sites to the dealers. They are using new state of the art technology so that they can even track every single bottle of shampoo. Transportation cost is shared by UNILEVER and the dealer.

PROCTER AND GAMBLE

P&G is also using road and railway transportation system to deliver product from various production sites to the dealers. They are also using latest Information Technology to track there consignment whose backend is managed by infosys. Each dealer has to keep the Good Receipt Note (GRN) number and report of the whole items of delivered products. Transportation cost is paid by P&G.

In the end, both P&G and UNILEVER uses advanced tracking technology to track the goods and both companies use railways and roadways for transporting there products. In UNILEVER transportation cost is shared by UNILEVER and the dealer, where as at P&G, transportation cost is paid by P&G.

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FLEXIBILITY

Unilever As far as flexibility is concerned; our group found that UNILEVER provides more flexibility in terms of delivery of produce. UNILEVER has there own warehouses in every state and if the dealer orders more , he is supplied with the products in time.

As far as flexibility is concerned; our group found that P&G does not provides more flexibility in terms of delivery of produce and in taking order from dealers.

Our group has found that Dealers of UNILEVER are more satisfied than the dealers of P&G and therefore UNILEVER is a step ahead in terms of flexibility of placing orders and accepting orders from the dealers.

DISTRIBUTION CHANNEL STRUCTURE

Unilever- Unilever channel structures consist of whole seller, mass retailers, rural and modern trade. Their new approach to distribution is holistic and seeks a three way convergence of product availability brand communication and brand experience. They are reinventing distribution—creating new channels and redefining the way current channels are serviced. They are building new capabilities in training the large number of people involved in these initiatives.

Procter and gamble’s channel structure also have whole sellers, mass retailers. They are revamping the company’s distribution system using efficient consumer response {E C R} principles. The new distribution system has given the company considerable cost and process efficiencies while significantly availability and visibility of the company’s product in the stores.

Our group has found that Unilever has more effective and efficient distribution network as compared to P & G, which increases the availability and presence of UNILEVER product. UNILEVER is also given emphasis on penetrating the rural market as well.

DEALING WITH UNSOLD AND DAMAGED MERCHANDISE

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Unilever-It depends on the condition and type of the product. If company feels that it is not the fault of the dealer then company would return it, unsold products are mostly taken back by UNILEVER

P & G replaces the damaged product with the new one, it means that the damaged product are replaced by new product.

Our group has found that both the companies take back the unsold product however P & G is more flexible in returning the damaged product as compared to the UNILEVER. Hence P & G is more flexible here.

PERFORMANCE APPRAISAL SYSTEM

UNILEVER - The performance appraisal system in Unilever is done under the supervisory of the Appraisal supervisor. The supervisor keep track of the performance of the employees and based on their performance he choose the right method of performance appraisal.the main method of performance appraisal that have been adopted by Unilever are 360 degree appraisal and supervisory appraisal methods.it is done as an early exercise and performance appraisal parameter is the past performance of the employees.

The performance appraisal system in Procter and gamble is also done under the supervisory officer and almost same method are used as in the Unilever.

the conclusion that our group has found that there is hardly any differences is the performance appraisal methods in both the companies .both the companies are taking almost the same measures and same parameters for performance appraisal , however both the company were not willing to disclosed any changes brought in performance appraisal system during the past five years .both of the companies said that there have been change in some areas and which has shown positive results, but not willing to give any reasons and what changes have been brought.

TARGETS

Unilever: UNILEVER has different channel members with specified targets and they are intended to increase sales, UNILEVER has also

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made changes in channel members during 2001-2006 to increase sales of the company. Every channel member has to fulfill there given targets, channel members expect the company of ROI. Every channel member gets credit period of two weeks. There was also change in performance appraisal system during 2001-2006 to improve sales. UNILEVER has also made changes in commercial terms intended to increase the sales in different channels and also to increase profit margins to company.

P&G also has different channel members with specified targets and they are intended to increase sales .P&G also made changes in channel members during 2001-2006 to increase sales of the company. The channel members expect ROI depending on there knowledge and on there performance to. Channel members get credit period of 30 days. Payment terms of P&G are also flexible to the channel members and P&G also has flexible payment terms P&G also offers many discounts to these channel members. P&G has made many changes to there commercial terms during 2001-2006 to increase sales.

Both UNILEVER and P&G are flexible to channel members, but UNILEVER runs some monopoly over the market by offering a credit period of only two weeks where as P&G offers credit period of 30 days. UNILEVER also sets targets to there channel members and provides very less margins to dealers compared to P&G.

SALES FUNCTIONING:

UNILEVER is emphasizing on rural areas through project Shakti these days and sales also have been increased and UNILEVER does not have any sales outlets UNILEVER assigns sales territory to there sales persons according to there skill and experience and assigns targets to them. Performance appraisal of sales force is done by appraisal supervisor and it is done through 360 degree appraisal method, parameter used is performance of the sales personnel . UNILEVER adopts on the job and off the job training system to there sales force it is emphasized on improving skill and experience of the sales personnel. Sales personnel are motivated through incentives and promotions.

Procter And Gamble: P&G has increased the number of outlets in the country and the population in the area also increased and there is no effect on sales. P&G sets targets to there sales force on the basis of increase or decrease in demand and also according to the previous sales , sales territories are assigned according to the capabilities of the

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sales personnel, responsibility of the sales personnel is to clarify the doubts of the customer and make sales of the product. Performance appraisal of sales force is done by the manager by doing meeting with them parameters of appraisal is increase or decrease in sales it is done on monthly basis. P&G trains their sales force by on the job training and training process is emphasized on skill and experience, P&G has also brought many changes in the training system that has affected its sales too. P&G motivates their sales force by providing them with targets and incentives.

Both P&G and UNILEVER trains their sales force and has a good performance appraisal system, P&G does appraisal on a monthly basis depending on increase and decrease of sales where as UNILEVER does it once in a year.

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RECOMMENDATIONS

Both the companies having good market share in India and it keep on

increasing. Both the co. i.e. UNILEVER and P&G should open exclusive

shop. UNILEVER is already having exclusive shop in Mumbai called

SANGAM STORE. But it is only in India so it should be increased. The

employee should be given uniforms in which the name of the company

should be printed, by doing this the sales people get motivated. These

shops should be opened for 24 hours. They should offer 24 hours free

home delivery system. The delivery vehicle should be attractive the

name of the company should be printed in that so that it becomes the

sources of advertisement.

The companies should emphasis on its advertisement, there should be

BRAND FIT in that. For example when lux launch its advertisement with

sharukh khan with girls. It was heavily criticized because it was not fit

with the brand. It adversely affect the opinion of the customer and it

results in decrease in sales.

Both companies should emphasis their business in areas. They should

penetrate their business in the rural areas. 69% of the Indian

population lives in rural areas. There is huge market there and very

less market has been penetrated. Both these companies should

concentrate on rural areas. P&G has been hardly been seen in the rural

areas.

So they should increase their presence.

They should increase their CSR activities in northern India. At present

they are currently doing their CSR in southern India. So they should

increase their activities in north India also.

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SUGGESTIONS

KEY ATTRIBUTE COMPONENTS:

Value for money and Customer Care

Operational attributes.

Physical attributes.

Brand Image.

Customer Specific Details.

In any correspondence with the customers the message should be sent

in these components only to have the maximum benefit from the

advertisement. Also these components should be dealt with

independently. The advertisements should speak only of the believable

concepts rather than glorifying the pretentious ones. The basic need of

the customer need to be addressed which is actually not much

expensive and better quality.

UNILEVER sales growth in june 2007 was decreased due to the problem

with promotion and pricing. Although being the most competitive

product on the basis of the Market Operating Price (MOP), the

shampoos are still not selling much. This is perhaps due to the

bargaining stress on the customer and the weak push given by the

dealer to the particular item, when actually it should be sold like a high

volume product.

Another serious suggestion is that UNILEVER must give good attention

to their all the products rice and all are not getting much attention. The

dealers don’t provide much support to the customers in making them

understand the real Quality behind them. Either, the technical details

should be presented in a clearer manner or the dealers need to be

educated properly.

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LIMITATIONS

Everything in this world has its own advantages and disadvantages

which shows ‘nothing is perfect’.

Following are the problems faced but it’s a part of game:

1. TIME CONSUMING: It is very much obvious that it is a time

consuming process. So much time has been spent for this purpose.

2. LOW PARTICIPATION: Obviously many respondents have not

participated in this and have also created some problems which

simply shows that they were not interested.

3. BIASNESS: Sometimes interested customers were also biased so the

collected figures involve both positive and negative figures.

4. It does not cover all the aspects of the company.

5. SUBJECTIVE: This project only tells you what it is all about.

BIBLIOGRAPHY

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BOOKS:

a) Marketing Management - Philip Kotler

b) Business policy and Strategic Management

MAGAZINES / NEWSPAPERS

1. The Times of India and Hindustan Times

2. The Economic Times

3. Business World

WEBSITES

www.google .co.in www.india-today.com/btoday

www.Unilever.org.

ANNEXURE

CUSTOMER SURVEY QUESTIONNAIRE

Name

Age

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Address

Q1. How many members are there in your family?

Q2. Have you ever heard of UNILEVER (Unilever)?

YES ______ NO ______

If Yes, from where?

Newspaper Magazines

Television Others _______

Q3. Are you using any UNILEVER product?

YES NO

Q4. If Yes, then are you satisfied?

YES NO

Q5. If No, then reason being

Poor quality High prices

No services Others

Q6. Which brand do you use in the following categories :

Personal Wash

Lux __________ Breeze ___________ Dove __________ Others ___________

Laundary Surf Excel _______ Rin ________ Wheel Others

Skin Care

Fair&Lovely ________ Pond’s ________ Sunslik Naturals ________ Others ________ Oral Care

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Pepsodent ________ Close-up ________ Others ________ Deodorants Axe ________ Lakme ________ Rexona ________ Colour Cosmetics Lakme ________ Others ________

Q7. What Recommendations or suggestions would you like to give for improvement of our products?

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QUESTIONNAIRE

1. Do you keep products of Parle in your shop? ( please tick mark on the appropriate answer) a).Yes b). No(If the answer is yes then go to question number: 3 )

2. Why don’t you keep the products of Parle in your shop or why did you stop keeping its products?

Yes Noa). erratic supply b). lack of demandc). low margin d). no suppliere). don’t know about the company

3. Which products of UNILEVER do you keep?

Personal Wash

Lux __________ Breeze ___________ Dove __________ Others ___________

Laundary Surf Excel _______ Rin ________ Wheel Others

Skin Care

Fair&Lovely ________ Pond’s ________ Sunslik Naturals ________ Others ________ Oral Care Pepsodent ________ Close-up ________ Others ________ Deodorants Axe ________ Lakme ________ Rexona ________ Colour Cosmetics Lakme ________ Others ________

4. What is the sales/demand of the product?1. Very High 2. High

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3. Average 4. Rarely  5. Very Rarely 6. Never

5. From whom do you purchase your product?1). Distributor 2). Dealer 3). Agency 4). Wholesaler

6. How do you rate the delivery process by the dealer?1. Excellent 2. Above Average  3. Average  4. Below Average  5. Extremely Poor 

7. How many dealers are there in the district?a).One b)Two. c)Three. d)More than three.

8. Which vehicle do they mainly use for delivery?1). Two wheeler

a). scooters__ , b). motorbike__.2) Three wheeler 3) Four wheeler

a) van__ ,b) truck__,c) others__.

13. What are the other schemes and incentives offered by them?______________________________________________________________________________________________________.

14. What improvements would you like to have in the distribution process?______________________________________________________________________________________________________.

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