FMCG Hul 2

A PROJECT REPORT
ON
ANALYSING THE COMPETITOR FACTOR AND BOOSTING UP
SALES IN GURGAON REGION
A Project undertaken at
Hindustan Unilever Limited
Plot No. B, Block No. A, South City-I,
Delhi Jaipur Highway, Gurgaon.
A PROJECT FOR
PARTIAL FULFILMENT
FOR AWARD OF DEEGRE OF MASTER OF BUSINESS MANAGEMENT
Submitted By:
Shikha Gupta
PGDM 2009-2011
Roll No. 09/109
TABLE OF CONTENTS
Analyzing the competitor factor and boosting up sales in gurgaon region
1. STUDENT CERTIFICATE
2. ACKNOWLEDGEMENT
3. PREFACE
4. EXECUTIVE SUMMARY
5. INTRODUCTION TO INDUSTRY
6. COMPANY PROFILE
7. COMPETITOR PRODUCTS
8. OBJECTIVE OF SUMMER TRAINING
9. RESEARCH METHODOLOGY
10.SWOT ANALYSIS
11.BUSINESS OPPORTUNITY
12.BIBLIOGRAPHY
13.APPENDIX ( QUESTIONNAIRE)
ACKNOWLEDGEMENT
On the successful and satisfying completion of this project, I would like to
share the immense joy in my heart with the others who have contributed to
the making of this project by acknowledging them and I set forth to thank all
the individuals directly or indirectly associated with it.
At the outset, I would like to thank Professor R.J Masilamani, faculty,

Bimtech who has been a great influence in shaping this project and during my
efforts to define the scope and frame of the project. His continual appraisal of
the progress of the project and also the insight into the subject he has given,
were a constant source of strength during my work.
I whole heatedly thank Mr. Aneet Mishra, Sales Executive, HUL-OOH and
Mr. Shiv Mohan Bharadwaj, Territory Sales Officer, HUL-OOH who not only
guided me in the making of the project but also gave me the in-depth
knowledge about the sales branch of marketing.
I have benefited a lot from the constructive criticism and suggestions given to
me by my colleagues with whom I discussed the project. I would also like to
extend my gratitude to all the faculty and lab staff for indirectly helping me to
complete this project.
Shikha Gupta
Bimtech 2009-2011
CERTIFICATE
This is to certify that the report titled, Analyzing The
Competitor Factor And Boosting Up Sales In Gurgaon
Region submitted by Ms. Shikha Gupta, Roll Number
DM09/109, for the partial fulfillment of the requirements PGDM

embodies the work done by him during the summer internship at
Hindustan Unilever Ltd. under the supervision of Professor R.J
Masilamani, faculty Bimtech and Mr. Shiv Mohan
Bharadwaj, Territory Sales Officer, HUL.
It is further certified that I have not submitted this report to

any other organization for any other degree.
Professor R.J Masilamani

Bharadwaj
Faculty Mentor, Bimtech
Territory Sales Officer, HUL
Mr.Shiv Mohan
Industry Guide,
Shikha Gupta
Student, Bimtech
Roll No- 09/109
PREFACE
This project is a part of the academic curriculum required for the fulfillment of the two
years full time programme, pursuing Post Graduate Programme in Birla Institute of
Management Technology, Greater Noida.
The project called Summer Internship Programme was undertaken at HINDUSTAN
UNILEVER LIMITED. This project aimed at analyzing the Market potential of HUL
vending products with respect to its competitors.
The study was carried out interacting closely with the sales team as well as
distributors and dealers of GURGAON REGION. It also involved face to face interaction
between different customers and corporate individuals.
The project has shown a significant light on the market share of different products
under vending division (Lipton Tea, Bru coffee, Taj Mahal Tea Bags and some other
products) with respect to its competitors like Nestle and Georgia.
Academically, the project provides a unique opportunity to have an exposure to real
life business environment and to have an insight into the management intricacies,
thus helping learning to be more purposeful and meaningful.
EXECUTIVE SUMMARY
This project gives a comprehensive idea about the SALES AND DISTRIBUTION
MANAGEMENT of one of the most important business sector in India, the FAST
MOVING CONSUMER DURABLES (FMCG) sector. The project was an endeavor to
study the existing Vending Business and the Liptons presence in it. It also tries to
analyze Liptons pricing, promotion, the distribution channel and alternatives.
It aims at installation of vending machine in a company and has been executed in
following three stages:
1. Cold calling
2. Meeting respective administration/human resource heads & Negotiations
3. Installation of Lipton vending machine
The task of installing a vending machine gets accomplice after several rounds of
negotiations the respective company representative is made acquainted with the
benefit his organization will get with Lipton. For this, a comprehensive cost-benefit
has to be presented to him to convert the prospect into key account of HUL.
Once an order is placed, the Lipton crew along with the distributor installs the Lipton
Vending Machine. Proper and regular technical support is provided for machine
management. The Lipton team also trains for a smooth operation of the Lipton
Vending Machine, which will help to maximize cuppage. The installation process is
divided into 5 stages:
1) Pre-delivery inspection at the establishment by the manufacturers technician.
2) Pre-installation Survey at the establishment by the installation crew. The crew
shall check the location for Water Source, Electrical Wiring and Fittings,
Earthing, Tank and machine placement- accordingly an estimation of cost shall
be provided.
3) All electrical, plumbing and water requirement are addressed before actual
installation.
4) After all the necessary checks are made, qualified technicians install the Lipton
Vending Machine.
5) Training of the machine handling personnel to ensure smooth functioning and
easy daily maintenance of the Lipton Vending Machine.
Through the vending machines Hindustan Unilever Ltd. promotes the
following three products:
Tea :
The packet tea market continued to be extremely competitive with national, regional
and local players vying for increased share and volumes Prices of garden tea
remained stable during the year, but have begun to firm up towards the later part of
the year. The strategy of investing in building Brooke Bond as a mega brand to
consolidate and strengthen the Company's leadership in the packet tea market
helped Brooke Bond maintain its leadership during the year. In 2009, Taj Mahal and
Lipton were successfully re-launched. Aggressive Brand building support behind
Lipton Natural Care has established Natural Care as a significant variant within the
portfolio. The focus on brand building, and innovation has helped the Company to
sustain its leadership position in the overall category and exit the year with a growth
momentum. Lipton continued to grow strongly in the Out-of-Home, Vending Channel
through acquisition of some major regional and national clients, and by strong
activation at key consumer points. The business continued to record sustained
profitability through its focused brand portfolio and highly streamlined supply chain
and cost management.
Coffee:
The Coffee business had another excellent year, led by strong growth in Instant
Coffee. The strategy to strengthen the brand equity of Bru through clutter breaking
and highly visible communication, coupled with world class activation led to
significant share gain further consolidating its leadership position within the branded
coffee market. Bru Cappuccino continues to help Bru recruit new consumers into its
franchise and consolidate Bru's channel leadership particularly in Modern Trade. The
Re. 1 and Rs. 3 low unit price packs continue to contribute significantly to the brand's
growth and drive category expansion. The coffee category, particularly Instant
Coffee, continued to be extremely competitive with national players securing growth
in volumes and market share. Ground and Roasted coffee; predominantly confined to
South India, faced competition from local and regional players. There is a perceptible
trend of increasing number, of consumers migrating to instant coffee from roasted
and ground coffee due to its inherent convenience.
Soups:
Knorr Soups enjoy a large share in the nascent and small soup market and held that
position during 2008. A new range of international quality soups were introduced
during the Foods business delivered a robust performance during 2008. This was on
the back of a good 2007, reflecting sustained momentum in the Kissan, Knorr and
Annapurna brands Kissan was relaunched with a new strategic positioning, improved
packaging and a superior formulation, which significantly enhanced the quality of the
product. Simultaneously, the Company focused on improving delivered freshness of
processed foods to consumers with an improved supply year. Simultaneously, a new
campaign to encourage soup consumption at various moments in the day has been
well received by consumers and customers. This will help the business to build
volumes through higher consumption.
INTRODUCTION TO INDUSTRY
Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged

Goods (CPG), are products that have a quick turnover and relatively low cost.
Consumers generally put less thought into the purchase of FMCG than they do for
other products. Though the absolute profit made on FMCG products is relatively
small, they generally sell in large numbers and so the cumulative profit on such
products can be large.
FMCG Products and Categories

Personal Care, Oral Care, Hair Care, Skin Care, Personal Wash (soaps);
Cosmetics and toiletries, deodorants, perfumes, feminine hygiene, paper
products;
Household care fabric wash including laundry soaps and synthetic detergents;
household cleaners, such as dish/utensil cleaners, floor cleaners, toilet
cleaners, air fresheners, insecticides and mosquito repellents, metal polish and
furniture polish.
Food and health beverages, branded flour, branded sugarcane, bakery
products such as bread, biscuits, etc., milk and dairy products, beverages such
as tea, coffee, juices, bottled water etc, snack food, chocolates, etc.
Frequently replaced electronic products, such as audio equipments, digital
cameras, Laptops, CTVs; other electronic items such as Refrigerator, washing
machines, etc. coming under the category of White Goods in FMCG;
Sector Outlook
FMCG is the fourth largest sector in the Indian Economy with a total market size of Rs.
60,000 crores. FMCG sector generates 5% of total factory employment in the country
and is creating employment for three million people, especially in small towns and
rural India.
Analysis of FMCG Sector

Strengths:
1. Low operational costs
2. Presence of established distribution networks in both urban and rural areas
3. Presence of well-known brands in FMCG sector
Weaknesses:
1. Lower scope of investing in technology and achieving economies of scale,
especially in small sectors
2. Low exports levels
3. Me-too products, which illegally mimic the labels of the established brands.
These products narrow the scope of FMCG products in rural and semi-urban market.
Opportunities:
1. Untapped rural market
2.
3.
4.
5.
Rising income levels i.e. increase in purchasing power of consumers

Large domestic market
Export potential
High consumer goods spending
Threats:
1. Removal of import restrictions resulting in replacing of domestic brands
2. Slowdown in rural demand
3. Tax and regulatory structure
Future Scenario
The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest
sector in the economy. A well-established distribution network, intense competition
between the organized and unorganized segments characterizes the sector. FMCG
Sector is expected to grow by over 60% by 2010. That will translate into an annual
growth of 10% over a 5-year period. It has been estimated that FMCG sector will rise
from around Rs 56,500 crores in 2005 to Rs 92,100 crores in 2010. Hair care,
household care, male grooming, female hygiene, and the chocolates and
confectionery categories are estimated to be the fastest growing segments.
Growth Prospect
With the presence of 16.5% of the world population in the villages of India, the Indian
rural FMCG market is something no one can overlook. Increased focus on farm sector
will boost rural incomes, hence providing better growth prospects to the FMCG
companies. Better infrastructure facilities will improve their supply chain. FMCG
sector is also likely to benefit from growing demand in the market.
Because of the low per capita consumption for almost all the products in the country,
FMCG companies have immense possibilities for growth. And if the companies are
able to change the mindset of the consumers, i.e. if they are able to take the
consumers to branded products and offer new generation products, they would be
able to generate higher growth in the near future. It is expected that the rural income
will rise in 2007, boosting purchasing power in the countryside. However, the demand
in urban areas would be the key growth driver over the long term. Also, increase in
the urban population, along with increase in income levels and the availability of new
categories, would help the urban areas maintain their position in terms of
consumption. At present, urban India accounts for 66% of total FMCG consumption,
with rural India accounting for the remaining 34%. However, rural India accounts for
more than 40% consumption in major FMCG categories such as personal care, fabric
care, and hot beverages. In urban areas, home and personal care category, including
skin care, household care and feminine hygiene, will keep growing at relatively
attractive rates. Within the foods segment, it is estimated that processed foods,
bakery, and dairy are long-term growth categories in both rural and urban areas .
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THE TOP 10 COMPANIES IN FMCG SECTOR

1. Hindustan Unilever Ltd.
2. ITC (Indian Tobacco Company)
3. Nestle India
4. GCMMF ( AMUL)
5. Dabur India
6. Asian Paints (India)
7. Cadbury Industries
8. Britania Industries
9. Procter and Gamble Hygine and Healthcare
10.
Marico Industries
Budget Implications on FMCG Sector

The Budget gives more focus on the agricultural/farm sector that will boost the rural
income thus providing better growth prospects to the FMCG companies. With 12.2%
of the world population living in the villages of India, the Indian rural FMCG market is
something no one can overlook. Better infrastructure facilities will improve their
supply chain. Also, with rising income and growing consumerism, FMCG sectors are
likely to benefit. Growth potential for all the FMCG companies is huge as the per
capita consumption of almost all products in the country is amongst the lowest in the
world. Further, if these companies can change consumer's mindset and offer new
generation products, they would be able to generate higher growth in the future
COMPANY PROFILE
11
Hindustan Unilever Limited, erstwhile Hindustan Lever Limited (also called

HLL), headquartered in Mumbai, is India's largest consumer products company,
formed in 1933 as Lever Brothers India Limited. Its 41,000 employees are headed
by Mr.Harish Manwani, the non-executive chairman of the board. HUL is the market
leader in Indian products such as tea, soaps, detergents, as its products have become
daily household name in India. The Anglo-Dutch company Unilever owns a majority
stake in Hindustan Unilever Limited.
A number of prominent companies came into the HUL fold as result of Unilevers
international acquisitions. These included Brooke Bond (1984), Lipton (1972) and
Ponds (1986). In 1993, Tata Oil Mills Company (TOMCO) merged with HUL. Five years
later, HUL and yet another Tata company, Lakme Limited, formed a 50:50 joint
venture, Lakme Lever Limited. Subsequently in 1998, Lakme Limited sold its brands
to HUL and divested its 50 per cent stake in the joint venture to the FMCG giant.
The leading business magazine, Forbes Global, has rated Hindustan Lever as the best
consumer household products company. Far Eastern Economic Review has rated HUL
as Indias most respected company. Asia money has rated HUL as one of Indias best
managed companies.
BUSINESS OF THE COMPANY
HULs business activities are divided into four broad areas :

Home & Personal Care
Personal Wash
Fabric Wash
Home Care
Oral Care
Skin Care
Hair Care
Deodorants & Talcs
Color Cosmetics
Foods
Tea
Coffee
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Branded Staples
Culinary Products
Ice Creams
Modern Foods ranges
New Ventures
Hindustan Lever Network
Ayush ayurvedic products & services
Sangam
Exports
HPC
Beverages
Marine Products
Rice
Castor
Brands
HUL s brands are household names across the country. They include Lifebuoy, Lux,
Surf Excel, Rin, and Wheel, Fair & Lovely, and Ponds, Sunsilk, Clinic, Pepsodent, Closeup, Lakme, Brooke Bond, Kissan, Knorr-Annapurna and Kwality Walls.
LOCATION
HUL products are manufactured in 80 factories. The operations involve over 2,000
suppliers and associates. HUL s distribution network, comprising about 7,000
redistribution stockiest, directly covers the entire urban population, and about 250
million rural consumers.
Past Milestones
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; other famous brands like Pears, Lux and Vim.
Vanaspati were 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 HUL in November 1956; HUL 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
13
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. 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, HUL 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 HUL'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 HUL, effective from April 1, 1993. In
1995, HUL 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 HUL and divested its 50% stake in the joint venture to the
company.
HUL formed a 50:50 partnership joint venture with the US-based Kimberly Clark
Corporation in 1994. Kimberly-Clark Lever Ltd, which markets Huggies Diapers and
Kotex Sanitary Pads. HUL 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 HUL'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 Ice-cream 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),
14
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 Ice-cream
Group families and in 1995 the Milk food 100% Ice-cream marketing and distribution
rights too were acquired.
Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal
restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in
1998. The two companies had significant overlaps in Personal Products, Specialty
Chemicals and 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 HUL, thereby beginning the divestment of government
equity in public sector undertakings (PSU) to private sector partners. HUL's entry into
Bread is a strategic extension of the company's wheat business. In 2002, HUL
acquired
the
government's
remaining
stake
in
Modern
Foods.
In 2003, HUL acquired the Cooked Shrimp and Pasteurized Crabmeat business of the
Amalgam Group of Companies, a leader in value added Marine Products exports.
CHRONOLOGY
YEA
R
MILESTONES
188
8
Sunlight soap introduced in India.
189
5
Lifebuoy soap launched; Lever Brothers appoints agents in Mumbai, Chennai,

Kolkata, and Karachi.
190
2
Pears soap introduced in India.
190
3
Brooke Bond Red Label tea launched.
190
5
Lux flakes introduced.
15
191
3
Vim scouring powder introduced.
191
4
Vinolia soap launched in India.
191
8
Vanaspati introduced by Dutch margarine manufacturers like Van den Berghs,

Jurgens, Verschure Creameries, and Hartogs.
192
2
Rinso soap powder introduced.
192
4
Gibbs dental preparations launched.
192
5
Lever Brothers gets full control of North West Soap Company.
192
6
Hartogs registers Dalda Trademark.
193
0
Unilever is formed on January 1 through merger of Lever Brothers and

Margarine Unie.
193
1
Hindustan Vanaspati Manufacturing Company registered on November 27;

Sewri factory site bought.
193
2
Vanaspati manufacture starts at Sewri.
193
3
Application made for setting up soap factory next to the Vanaspati factory at
Sewri; Lever Brothers India Limited incorporated on October 17.
193
4
Soap manufacture begins at Sewri factory in October; North West Soap

Company's Garden Reach Factory, Kolkata rented and expanded to produce
Lever brands.
193
5
United Traders incorporated on May 11 to market Personal Products.
193
7
Mr. Prakash Tandon, one of the first Indian covenanted managers, joins HVM.
193
9
Garden Reach Factory purchased outright; concentration on building up Dalda

Vanaspati as a brand.
194
1
Agencies in Mumbai, Chennai, Kolkata and Karachi taken over; company

acquires own sales force.
194
2
Unilever takes firm decision to "train Indians to take over junior and senior
management positions instead of Europeans".
16
194
3
Personal Products manufacture begins in India at Garden Reach Factory.
194
4
Reorganization of the three companies with common management but

separate marketing operations.
194
7
Pond's Cold Cream launched.
195
1
Mr. Prakash Tandon becomes first Indian Director. Shamnagar, Tiruchy, and
Ghaziabad Vanaspati factories bought.
195
5
65% of managers are Indians.
195
6
Three companies merge to form Hindustan Lever Limited, with 10% Indian
equity participation.
195
7
Unilever Special Committee approves research activity by Hindustan Lever.
195
8
Research Unit starts functioning at Mumbai Factory.
195
9
Surf launched.
196
1
Mr. Prakash Tandon takes over as the first Indian Chairman; 191 of the 205
managers are Indians.
196
2
Formal Exports Department starts.
196
3
Head Office building at Back bay Reclamation, Mumbai, opened.
196
4
Etah dairy set up, Anik ghee launched; Animal feeds plant at Ghaziabad;
Sunsilk shampoo launched.
196
5
Signal toothpaste launched; Indian shareholding increases to 14%.
196
6
Lever's baby food, more new foods introduced; Nickel catalyst production
begins; Indian shareholding increases to 15%. Statutory price control on
Vanaspati; Taj Mahal tea launched.
196
7
Hindustan Lever Research Centre, opens in Mumbai.
196
8
Mr. V. G. Rajadhyaksha takes over as Chairman from Mr. Prakash Tandon; Fine
Chemicals Unit commissioned at Andheri; informal price control on soap
17
begins.
196
9
Rin bar launched; Fine Chemicals Unit starts production; Bru coffee launched
197
1
Mr. V. G. Rajadhyaksha presents plan for diversification into chemicals to

Unilever Special Committee - plan approved; Clinic shampoo launched.
197
3
Mr. T. Thomas takes over as Chairman from Mr. V. G. Rajadhyaksha.
197
4
Pilot plant for industrial chemicals at Taloja; informal price control on soaps
withdrawn; Liril marketed.
197
5
Ten-year modernization plan for soaps and detergent plants; Jammu project
work begins; statutory price control on Vanaspati and baby foods withdrawn;
Close-up toothpaste launched.
197
6
Construction work of Haldia chemicals complex begins; Taloja chemicals unit

begins functioning.
197
7
Jammu synthetic Detergents plant inaugurated; Indian shareholding increases

to 18.57%.
197
8
Indian shareholding increases to 34%; Fair & Lovely skin cream launched.
197
9
Sodium Tripolyphospate plant at Haldia commissioned.
198
0
Dr. A. S. Ganguly takes over as Chairman from Mr. T. Thomas; Unilever

shareholding in the company comes down to 51%.
198
2
Government allows 51% Unilever shareholding.
198
4
Foods, Animal Feeds businesses transferred to Lipton.
198
6
Agri-products unit at Hyderabad starts functioning - first range of hybrid seeds

comes out; Khamgaon Soaps unit and Yavatmal Personal Products unit start
production.
198
8
Launch of Lipton Taaza tea.
199
0
Mr. S. M. Datta takes over as Chairman from Dr. A. S. Ganguly.
199
1
Surf Ultra detergent launched.
18
199
2
HUL recognised by Government of India as Star Trading House in Exports.
199
3
HUL's largest competitor, Tata Oil Mills Company (TOMCO), merges with the
company with effect from April 1, 1993, the biggest such in Indian industry till
that time. Merger ultimately accomplished in December 1994; Launch of Vim
bar; Kissan acquired from the UB Group.
199
4
HUL forms Nepal Lever Limited, HUL and US-based Kimberley-Clark

Corporation form 50:50 joint venture - Kimberley-Clark Lever Ltd. - to market
Huggies diapers and Kotex feminine care products. Factory set up at Pune in
1995; HLL acquires Kwality and Milkfood 100% brand names and distribution
assets. HLL introduces Wall's.
199
5
HUL and Indian cosmetics major, Lakme Ltd., form 50:50 joint venture - Lakme
Lever Ltd.; HUL enters branded staples business with salt; HLL recognized as
Super Star Trading House.
199
6
Mr. K. B. Dadiseth takes over as Chairman from Mr. S. M. Datta; Merger of

Group company, Brooke Bond Lipton India Limited, with HLL, with effect from
January 1; HUL introduces branded aatta; Surf Excel launched.
199
7
Unilever sets up International Research Laboratory in Bangalore; new Regional

Innovation Centers also come up.
199
8
Group company, Pond's India Ltd., merges with HUL with effect from January
1, 1998. HUL acquires Lakme brand, factories and Lakme Ltd.'s 50% equity in
Lakme Lever Ltd.
200
0
Mr. M. S. Banga takes over as Chairman from Mr. K. B. Dadiseth, who joins the
Unilever Board; HUL acquires 74% stake in Modern Food Industries Ltd., the
first public sector company to be disinvested by the Government of India.
200
2
HUL enters Ayurvedic health & beauty centre category with the Ayush range
and Ayush Therapy Centers.
200
3
Launch of Hindustan Lever Network; acquisition of the Amalgam Group
200
5
Launch of "Pureit" water purifiers
Management Structure
Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods (FMCG)
Company. It is present in Home & Personal Care and Foods & Beverages categories.
HUL and Group companies have about 16,000 employees, including 1200 managers.
The fundamental principle determining the organization structure is to infuse speed
and flexibility in decision-making and implementation, with empowered managers
19
across the company's nationwide operations. For this, HUL is organized into two selfsufficient divisions - Home & Personal Care & Foods - supported by certain central
functions and resources to leverage economies of scale wherever relevant.
Board
Divisions
Central functions
Businesses
Board of Directors/ Key Personnel

Mr. Harish Manwani
Mr D. Sundaram
Mr Nitin Paranjpe
Mr Hemant Bakshi
Chairman
Vice chairman
CEO & MD
Executive Director sales & customer development
Mr
Mr
Mr
Mr
Independent Director
Independent Director
Executive Director
Executive Director & CFO
C.K Prahalad
D.S Parekh
Gopal Vittal
Sridhar Ramamurthy
Sales and income break-up from different business

activities of Hindustan Unilever Ltd. :
(Values in crores - (Source: www.hul.com))
20
PBIT Break-up:
(Values in crores)
(Source: www.hul.com)
HINDUSTAN UNILEVER LOGO

Logo of Hindustan Unilever is contaning the legacy of their parent company Unilever.
Logo of Hindustan Unilever has also been changed with company name. This logo
coincides with the announcement of new corporate identity. Name HUL was approved
by shareholder at the year annual meeting on May 18 & new identity was officially
announced on 25 June following government approval.
New identity provides optimum balance between maintaining the heritage of the
company & synergies of global alignment with the corporate name of Unilever. Most
importantly it retains Hindustan as the first word in its name to reflect the
companys continued commitment to local economy, consumers, partners, &
employers .
New logo symbolizes the company mission of Adding Vitality to life & play a very
strongly in our vision of Earning the love & respect of India by making a real
difference to every Indian. It comprises 25 different icons representing organization,
its brands & idea of vitality.
SUN :
Our primary natural resource. All life begin with this

Ultimate symbol of vitality.
21
DNA :
Double helix, the genetic blueprint of life & a symbol of bioscience. It is

the key to a healthy life. While the sun is the biggest source of life,dna is
the smallest
SPOON :
A symbol of nutrition , tasting & cooking.
BOWL :A bowl of delicious smelling food. it can
drink or soup
also represent a ready meal , hot
SPICE & FLAVOUR : Represent chillie or fresh ingredient.

FISH :
Representing food, sea or fresh water.
SPARKLE
: Clean healthy & sparkling with energy.
SAUCE OR SPREADS :
Represents mixing or string. It suggest blending in
flavor & adding taste
BEE :
Representing creation , pollination, hard work & bio diversitys bee

symbolizes both environmental challenges and opportunities.
HAND & FLOWER : Hand symbolizes sensitivity care & need .it represent skin &
touch. & flowers , fragrance .when seen with hand , it represents moisture or
cream.
ICECREAM
LIPS
HAIR
: A treat, pleasure & enjoyment.
: represent beauty, looking good & taste.

: A symbol of beauty & good looking. Placed next to the flower it evokes
cleanliness & fragrance ; placed near the hand it suggest softness.
PALM TREE : A nurtured resources. It produces palm oil as well as many fruits
coconuts, bananas & dates and symbolizes paradise.
BIRDS : A symbol of freedom. It suggest a relief from daily chores, & getting more
out of life.
RECYCLE : A part of our commitment to sustainability.
PARTICLES : A references to science ,bubbles & fizz.
TEA : A plant or extract of a plant ,such as tea. Also a symbol of growing & farming.
FROZEN : The plant is a symbol of freshness, the snowflakes represent freezing. A
transformational symbol.
LIQUID : A reference to clean water & purity.
WAVE : Symbolizes packaging a pot of cream associated with personal care.
22
CLOTHES : Represents fresh laundry & looking goods.

HEARTS : A symbol of love , care & health.
23
OUT OF HOME BUSINESS

Have you caught the tail of a new trend in town? Have you as yet spotted the best of
brands running into the terrain of out-of-home consumption? Running for cover from
the meltdown in the in-home segment of consumption!
Out-of-home branding is the new buzzword sweeping Indian shores. Brands that
stubbornly remain indoors through their positioning and segmentation strategies are
in for a jolt!
Consider the facts. The Indian population is a young population. Life expectation is
longer than before. Income standards are up. Except for a year of aberration, the
Indian monsoon has largely behaved! Good monsoons mean a good crop. Large parts
of the rural economy are a non tax-paying economy. Good rains spell good crops and
good crops in turn spell a good amount of disposable income!
The metro is a happening place. We have five big ones and a whole host of 29 one
million plus population towns that are buzzing with activity. The man works. The
woman works as well.
The average Indian is spending a lot more time out of home than before. Eight hours
at work, two hours on travel and two hours of outdoor entertainment and eating out,
gobbles up half his day. And that's a lot of time spent out of home! The brand in his
life has to appeal to his senses more out-of-home than when in home.
Tea and coffee have always been very popular beverages among people. It is beyond
the class boundaries. People of all age groups relish them. With globalization and
expansion of retail business, markets etc the ready to serve food items and
beverages have gained lot of demand. One can spot the coffee tea vending machines
almost everywhere- be it Hospitals, Airports, Commercial complexes, offices, big
markets and even local colony markets. Its popularity can be judged from the fact
that in places like Pragati Maidan one can find ready to serve tea, coffee almost
everywhere. It has become a style statement to be drinking these instead of the
handmade tea/coffee.
They sell like hot cakes especially in markets and shopping places. Nowadays people
are conscious about hygiene. Many people go in for these ready to serve tea/coffee
and of course their good taste is a major drawing factor.
Lipton Yellow Label has painted many a town and cities yellow! Many a restaurant,
many a bus stop, and many a signage potential is today all yellow Lipton seems to
run out of home and focus on consumption that is outdoor while Sister Brooke Bond
seems to focus on what is happening inside the home!
Happy people are productive people. This is the basic rule of any company. Big or
small, every employer tries at keeping his employees, customers and clients happy.
24
Imagine if an organization has a wide range of refreshments to grab, at fingertips; if

they could enjoy getting a whole load of refreshments as and when they wished for it.
Lever foods service gives them this freedom in form of vending machines. Available
in hot and cold formats, they are the complete vending solutions for an organization.
So, everyone is happy at the push of a button.
Geographically, tea is widely consumed in the North, East and West of India, and is
popular with a wide variety of social classes and consumer age groups. Black
standard tea constitutes nearly 80% of value sales. In the south, coffee is bigger as a
proportion of total hot drinks than in the rest of the country though green tea has
seen its popularity rise.
It accounts for 90% of the total beverage consumption in the country. In 2007,
tea co9nstituted 70% of retail volume sales, compared to coffee and other hot drinks
with 4.4% and 26% shares respectively.
Retail sales volume in year 2009

(Source: www.answers.com)
India accounts for 26% of the total production of worlds tea and 4.6% of that of
worlds coffee.
25
World Coffee Production in year 2009 - (source:www.financialexpress.com)
World Tea Production in year 2009 (source : www.answers.com)
Unilever (Brooke Bond and Lipton) is the clear leader, holding over 30% of the market
share, while Tata Tea (Tata) trails it with almost 20%. The remainder of the market is
far more fragmented and shared between numerous small players. Loose tea
comprises a 45-per cent market and is a formidable challenge to the Indian packaged
tea segment, because of its lower prices.
The brand war
HUL
Tata Tea
Premium leaf tea market Taj Mahal, Yellow Label

and
(Rs 220-240/ kg)
Green Label
Tetley Temptations
Premium dust category Three Roses and Top
(Rs 180-200 per kg)
Star
Chakra Gold
Medium leaf sector

(Rs 140-180 per kg
Red Label and Taaza
Tata Tea Premium
Medium dust category

(Rs 130-180 per kg)
Taaza, Super
Tata Tea Premium, Kanan Devan and

Gemini
Popular or economy
category
(Rs 120-140 per kg)
A-1 and Tiger
Agni Sholay
Economy dust teas

(Rs 120-130 per kg)
A-1 and Ruby
Agni and Leo
Packet Tea Segment in India

26
Consumers in different parts of the country have heterogeneous taste. Dust tea is
very popular in the south. In the western states, good quality loose tea is preferred in
Gujarat, whereas in Maharashtra, consumers provide a large market to packet as well
as unbranded tea.. The eastern states of West Bengal and Orissa consume CTC
broken. Among the northern states, CTC fanning is liked in Rajasthan and CTC broken
in others states of the North. The Central India is predominantly a dust market
CTC = Cut, Tear, Curl. CTC production is a shortened, machine automated production
process. Importance is put on a uniform leaf and a quickly colored infusion.
Hindustan Unilever Limiteds (HUL) packet tea business has strengthened its position
in the market in 2004, led by its two mega brands, Brooke Bond and Lipton.
Simultaneously HUL continues to post strong growth in coffee.
HUL has further consolidated on the successful relaunched of Brooke Bond in the
second half of 2003. The three Brooke Bond sub-brands, Taj Mahal, Red Label and
Taaza, with their distinct positioning, have expanded their presence to cover new
geographies. This has helped strengthen marketplace position.
Appropriately priced packs have been introduced to make the Brooke Bond offerings
more accessible. Coupled with high-impact market activation, these packs have
increased Brooke Bonds market share and sustained its strong growth.
The Lipton brand, targeted at young consumers, has been appropriately expanded in
the Out-of-Home segment. Lipton Ice Tea has been successfully test-marketed in
Bangalore and Chennai. The consumer test proven mix will now be taken national,
leveraging the alliance between HUL and Pepsi.
HUL has already identified Out-of-Home as a growth driver. The channel, which has
posted strong growth in the last two years, will be used for the entire HUL Beverages
and
Foods
categories.
In the Instant Coffee segment, HUL continues to post strong growth. Bru Instant
Coffee has been re-launched, with a new identity, communication and modern pack
formats. Superior activation, penetration building activities and investment in
strategic channels, like Out-of-Home, is contributing to the growth. Bru, as a
franchise, has been strengthened with the filter coffee brand, Deluxe Green Label, relaunched as Bru Roast & Ground.
Consumption in leading producing countries- (source:

ICO)
27
Coffee consumption in India, by and large is an urban phenomenon with an urban and
rural divide of 71% and 29% respectively. Among the type of coffee consumed it was
almost equally divided between instant (soluble) and filter (Roast and ground) coffees
though the proportion of instant coffee is very high in non-south.
Per capita Consumption of Coffee in India

(source:www.indiacoffee.org)
Attitude of Indian Coffee Consumers
(www.indiacoffee.org)
Penetration (Beverage consumed in the past 12 months) of coffee at 59% is low
compared to that of tea.
Penetration of filter coffee is highest in South India
In the Rural areas (South India) instant coffee has a higher level of penetration
than filter coffee.
Consumption of coffee is relatively lower with 19% consuming it when compared
to 85% for tea. Consumption was the highest in the South at 31 % while it ranges
between just 35% in the weak coffee zones of North, East and South.
28
Yesterday's consumption is the highest among the 15-24 and 35-44 age group.
When compared to consumption of other beverages yesterday, coffee comes in
third, after tea and plain milk. Among other beverages, buttermilk, natural
beverages and Carbonated Soft Drink are more popular with more than 10% of
respondents consuming these beverages yesterday.
Coffee is consumed as a first cup only by 23% of coffee drinkers even in the
traditional market of the South.
Per capita consumption of coffee (among all respondents - both drinkers and non
drinkers) is 0.33 cups against 1.77 cups for tea. However, coffee consumption
among drinkers at 1.76 cups compares favorably with that of tea at 2.1 cups..
The proportion of non-drinkers is the highest in the oldest age group of 55+
years. Amongst coffee consumers in the rural areas, a majority (43% of all adults)
is light drinkers, consuming 1-2 cups everyday. About a fifth of rural consumers
consume coffee occasionally.
HISTORY OF VENDING MACHINES

Automated retailing through vending machines is a concept that has been
exploited by entrepreneurs around the world for over four decades. India,
however, is relatively virgin market though with huge potential. Vending may be
considered as a new concept in India, but it has been in existence for thousands of
years.
Vending
Timeline
Details
215 B.C.
Device to dispense holy water used in temples of Egypt,

described by Mathematician Hero, who lived in Alexandria.
1076 A.D
The Chinese produce a coin operated pencil vendor.
1700s
Coin operated boxes appear in English taverns.
1886
U.S grants several patents for coin operated dispensers.
1888
Thomas Adams company installs Tutti Frutti gum machines on

New York elevated train platforms.
1902
Horn and Hardart Baking Company opens automatic restaurant in

Philadelphia.
1905
U.S post office begins to use stamp vendors.
1920s
First commercial cigarette vending machine enters the market.
29
1930s
Bottled soft drink machines, cooled with ice, appear on market.
1936
National Automatic Merchandising Association is founded.
1946
Invention of first coffee vendors leads to use of vending

machines for coffee breaks.
1950
First refrigerated sandwich vendors expand lunch venue.
1957
U.S Public Health Service approves Model Vending Sanitation

Code, and NAMA establishes industrys first evaluation
programmed certify vending equipment.
1960
Dollar bill changers are added to vending banks.
1980
Electronic components applied to vending machines.
1985
Credit card/debit card services for vending machines introduced.
1986
100th anniversary of vending machines in U.S.
1991
Flavored coffee, espresso and cappuccino introduced in

machines.
1993
First remote wireless transmission of data from machines to

warehouse.
1999
New dollar coin introduced by U.S mint
A GLIMPSE OVER THE ACHIEVEMENT OF HUL VENDING DIVISION
More than 25000 installations across 100 towns serving over a

billion cups of beverages per annum and growing.
Customized solutions for a wide array of needs from mall to offi ces
to factories and hotels.
Support for 24/7 operations, including some of the biggest bpos,

companies and banks.
Solutions for all offi ces ranging from 10 to 10000 people and at
remote locations.
30
PRODUCT AND MACHINE RANGE

LIPTON THE TEA AND COFFEE RANGE
An international brand with a winning formulation, with the assurance of total
hygiene and top class quality, Lipton Tea and Coffee comes in a range of mouthwatering flavoring:TEA: Plain Tea, Cardamom Tea, Hot Lemon, Tea Bag Tea.
COFFEE: Bru Plain Coffee, Choco Almond, Bru Diet Coffee, Cappuccino Special Coffee.
COLD RANGE: Bru Cold Coffee (Frappucino), Lipton Ice Tea (Lemon, Peach).
SOUP RANGE: - Knorr Tomato Soup
THE LIPTON VENDING MACHINE
31
Lipton Vending Machines have been specially designed and are being introduced
keeping our market realities and interests in mind. Following are the variants of
Vending machines:
Mr. Dependable The New 4 Lane U Cup Machine
1.
2.
3.
4.
5.
Option of 4 ingredients in nature of coffee, tea, soup etc.

Staggered dispensing option for tea bag.
Temperature interlocking.
Auto cleaning
Water source Online/Bubble top
Smart card Machine
1.
2.
3.
4.
Option of 4 ingredients in nature of coffee, tea, soup etc.

Post or pre paid option through smart card
Option for consumption data down loading to PC for MIS processing.
Staggered dispensing option for tea bag.
32
5. Auto Cleaning
6. Temperature Interlocking
7. Water source Built in tank/ bubble top
Thirst Quencher Ice Tea Machine
1. Option of 2 ingredients in nature of ice tea and cold coffee.

2. Dispensing Rate:
- 3 cups/min (200ml each)
- Approx 20 cups non stop
3. Auto cleaning
4. Water source Online/ Bubble top
High Speed Hot Machine
1.
2.
3.
4.
Option of 5 ingredients in nature of coffee, dairy whitener, soup etc.

Option of simultaneously dispensing 3 drinks.
Option of cappuccino.
Staggered dispensing option for dairy whitener.
33
5. Dispensing rate:
- 15 cups/min of 100 ml each
- Approx 250 cups non-stop
6. Auto cleaning.
7. Temperature inter-locking
A Caf bar at Work Fresh bean Coffee Machine
1. Option of 4 ingredients in nature of coffee bean, dairy whitener, soup etc.
2. Providing 10 drink options including 6 options of fresh bean coffee.
3. Dispensing rate :
- 2 cups/min of 100ml each
4. Temperature interlocking
5. Water source on-line/ Bubble top.
A Lipton Vending Machine is the most advanced of its kind. Features like
Microprocessor controlled water temperature, inbuilt Digital Counter, Hardware Lock
and Auto-Flush system helps to maintain a low failure rate. It is also hygienic and
insect proof, which also contributes to its durability. Flexibility in cup offerings full
and half; is another attribute that makes the Lipton Vending Machine stand out as the
most convenient vending machine. The technologically superior equipment has been
put through intense stress tests so that it can withstand the demanding local market.
WATER MANAGEMENT
The HUL Company has been known for remarkable consistency in quality for over a
hundred years. To ensure that quality beverage is served consistently, cup after cup,
the Lipton Vending Machine is fitted with any of four different types of filters :SINGLE, DOUBLE, TRIPLE AND RESIN filter. This makes sure that the best and safest
quality of water goes into the vended Lipton cup. The filter thus enhances the quality
of water, taste of the beverage and also increases equipment life.
SERVICE SUPPORT
34
For the Lipton vending machine, there shall be an authorized service center with a
vast network to cater to the needs of the customer. Three basic steps shall be
undertaken to ensure long life and smooth functioning of your Lipton Vending
Machine.
1) Regular Daily Maintenance: - Proper training shall be imparted on the daily
usage, cleaning and maintenance of the Lipton Vending Machine, at the time of
installation, to your personnel.
2) Monthly Preventive Maintenance: - The Lipton crew shall make regular monthly
visits for check-ups, maintenance and smooth functioning of Lipton Vending
Machine.
3) Breakdown and Repairs: - In case of breakdown, the Lipton crew shall address
the problem promptly and effectively. Also, a regular dispatch plan for the premixes shall be regularly communicated to you, for you to maintain an
appropriate stock inventory. An exclusive customer care phone no. is provided
for any queries and assistance on the Lipton Vending Machine.
DISTRIBUTION CHANNEL
FACTORY
DEPOT
R.S
DEPOT
R.S
CONSUMER
CONSUMER
R.S
CONSUMER
R.S
CONSUMER
You dont know how much people are buying pears, lux & fair & lovely but in OOH
company directly touches the customer & they know how much consumption is there.
In the distribution channel of vending machine retailer doesnt play part after the
Redistribution Stockiest (R.S.) consumer can avail the product.
35
COMPETITOR PRODUCTS
The three chief competitors of Hindustan Unilever Ltd in tea and coffee vending
business are Nescafe, Tata, Georgia and Caf Coffee Day which have their presence
in the market with following products:
1) Caf Coffee Day

Caf Coffee Day is a chain of coffee shops in India. A division
of Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL),
it is commonly known as Coffee Day. It opened its first cafe in
1996 on Brigade Road in Bangalore, and today has the largest
cafe retail chain in India - with 436 cafes in 69 cities.
Headquartered in Bangalore, a majority of its cafes are also
located in Bangalore. The cafe chain has had much success
riding, and to some extent creating, the cafe culture wave that
swept across metropolitan
Coffee Day sources coffee from 10000 acres of coffee estates, the 2nd largest in Asia,
that is owned by a sister concern and from 11,000 small growers. It is one of Indias
leading coffee exporters, with clients across the USA, Middle East Europe and Japan.
(2) FRESH & HONEST

Till recently a company selling beverages, Fresh and Honest, a part of the Sterling
group, has now added noodles and corn flakes to its product basket by signing up
deals with Indo Nissan Foods Limited (makers of Top Ramen noodles) and Kellogg's.
Fresh and Honest imports soup powder and Swiss chocolate
powder from two Swiss companies Haco and Domaco
respectively. The coffee bean, dip tea packs, milk and sugar are
sourced within India. The coffee bean is sourced from
Chikmagalur, Karnataka.
Fresh and Honest imports soup powder and Swiss chocolate
powder from two Swiss companies Haco and Domaco
36
respectively. The coffee bean, dip tea packs, milk and sugar are sourced within India.
The coffee bean is sourced from Chikmagalur, Karnataka.
(3) TATA TEA

Another competitor of HUL is Tata with its brand Tetley.
Tata Coffee Limited, one of the worlds largest integrated

coffee company. The company earlier known as
Consolidated Coffee was renamed as Tata Coffee with the
merger of Coffee Land and Asian Coffee.
Tetley has been a member of the Tata Group since March 2000
and today contributes around two-thirds of the total turnover of
Tata Tea. The company is a joint venture between Tata Tea, which produces 40 million
kg of tea per annum at its gardens, and the UK-based Tetley Group, a tea blender and
tea bag producer of international repute. The Tata-Tetley combine offers a wide range
of international quality products, such as round tea bags, string and tag tea bags, and
packet tea.
VENDING MACHINE & THEIR FEATURES
SINGLE OPTIONsimple-sleek, detachable drip tray, hot water facility.
DOUBLE OPTION-HOTdetachable drip tray, hot water facility.
TRIPLE OPTION-HOTbuilt in stabilizer, auto cleaning, digital counter, temperature
interlocking.
FOUR OPTION-HOT auto cleaning, digital counter, temperature interlocking, auto
flushing.
MULTIPLE OPTION-HOT Provision for mineral water bubble top, auto flushing,
temperature interlocking, digital counter.
(4) NESTLE
The main competitor of HUL vending products in the market is
Nestle. And listed below are some points about Nestle.
All about Nestl
Nestl was founded in 1866 by Henri Nestl, a pharmacist, who
developed a food for babies who were unable to breastfeed. The
Nestl Company has aimed to build a business based on sound
human values and principles.
Nestl is committed to the following Business Principles in all
countries, taking into account local legislation, cultural and
religious practices:
Nestl's business objective is to manufacture and market the Company's products in
such a way as to create value that can be sustained over the long term for
shareholders, employees, consumers, and business partners.
37
Nestl does not favor short-term profit at the expense of successful long-term
business development.
Nestl recognizes that its consumers have a sincere and legitimate interest in the
behavior, beliefs and actions of the Company behind brands in which they place their
trust and that without its consumers the Company would not exist.
Nestl believes that, as a general rule, legislation is the most effective safeguard of
responsible conduct, although in certain areas, additional guidance to staff in the
form of voluntary business principles is beneficial in order to ensure that the highest
standards are met throughout the organization.
Nestl is conscious of the fact that the success of a corporation is a reflection of the
professionalism, conduct and the responsible attitude of its management and
employees. Therefore recruitment of the right people and ongoing training and
development are crucial.
Nestl continues to maintain its commitment to follow and respect all applicable local
laws in each of its markets.
TEA
Nestea Tea Bags, Instant Tea Premix ( Cardamom Flavor), Instant
Tea Premix (Plain Tea), Lemon Tea, Dairy Whitener, Everyday Sugar Free
COFFEE
Nescaf Premix, Nescafe Low Sugar, Cappuccino, Mochacino.
MAGGI TOMATO SOUP
COMPETITORS PRICES
GEORGIA
Product Name
Rate
Specification
Georgia Milk
110.00
Per Kg( Appx. 100 cups)
Georgia
Cardamom
Tea/
Ginger Tea/ Masala Tea
220.00
Per Kg (Appx.95 Cups)
Georgia Coffee
200.00
Per Kg (Appx. 95 Cups)
Georgia Hot Lemon Tea
190.00
Per Kg ( Appx. 125 Cups)
Georgia Without Sugar Milk
310.00
Per Kg (Appx 200 cups)
Sun fill Soup
330.00
Per Kg ( Appx. 167 Cups)
Rate
Specifi cation
NESTLE
Product Name
38
Nescafe Coffee Premix
185.00
Per kg (Approx. 80 cups)
Nescafe Low Sugar Premix
200.00
Per Kg (Approx. 80 cups)
Nescafe Classic coffee
535.00
Per 500 Gms,
Everyday Whitener Premix
112.00
Everyday
Poly
180.00
Per kg
220.00
Per Kg
98.00
Per 500 gm (Approx. 15

cups)
190.00
375.00
Tea Bags
0.70
Per Bag
Creamer 3Gm
101.83
Per Case( 24pkt)
Paper Beaker 150 Ml
0.45
Per Beaker
Plastic Beaker 150 Ml
0.50
Per Beaker
Sugar Powder
43.50
Per Kg
42.00
Per kg
Dairy
Whitener
Badam Milk Premix

Nestea
Premix
Lemon
Nestea
Premix
Cardamom
Maggie
Tomato
Hot
Sugar
Pack]
Cube
Cup
Peach
Tea
Soup
[Economy
OBJECTIVE OF TRAINING
An attempt has been made to fulfill the following objectives:
(i)
(ii)
Finding new opportunities for the vending services of the company by

making organizations acquainted with concept.
Handling marketing and sales operations for achieving increased growth &
profitability.
39
(iii)
(iv)
Generating leads and converts them into sales for product.

Customer grievances and distributor handling.
I subdivide these objectives as:

(i)
(ii)
(iii)
(iv)
Understanding the nerve of competition in the market with major players

namely Caf Coffee Day, Nestle, Georgia etc.
Understanding the pulse of the market & accordingly plan the course of
action.
Interacting with clients for understanding their need and the information
required by them.
Finding the major factors that led the customers to decide on which
tea/coffee they choose.
RESEARCH METHODOLOGY
RESEARCH DESIGN
A Sample Design is definite plan for obtaining a sample from given population. it refer
to technique or procedure the research would adopt in selecting item for the sample.
SAMPLE PLAN FOR SURVEY
SAMPLE UNIT - Institutional & Factories.
SAMPLING AREA Gurgaon
SAMPLE SIZE 50 companies and 100 customers
DATA COLLECTION Through Questionnaire
Further I have divided the whole gurgaon in five par
1.
INFINITY TOWERS
2.
SECTOR 56
3.
SECTOR 32
1.
PRIMARY SOURCES
Primary data are gathered for a specific purpose or for a specific research project.
In this project, the data I have collected is regarding the use of vending machines
by having interactions with the HR person, ADMIN. HEAD, and the purchase
manager that which machine they are using whether it is nestle, Georgia, Lipton
and with the help of which market share of each company is calculated.
2. SECONDARY SOURCES
40
In this purpose secondary Data is useful to collecting the various information about
companies like telephone no. addresses etc. so I have consulted telephone directory
& Informative websites.
NOTES:
Primary data was collected through the survey done by the
questionnaires. Questionnaires are the most reliable method of
primary data collection.
More than 150 companies were surveyed in the Gurgaon City on a
random choice basis.
Customer interaction was done at canopy, door step and in the market
and other public places.
I enumerate the data and they were converted into frequency
distribution.
DATA INTERPRETATION: through these frequency distributions graphs
& charts were made for further analysis. These were used to draw the
conclusions of the survey.
41
ANALYSIS AND FINDING

There are 7 channel of distribution of vending machine.
1) INSTITUTION : The main business of company is coming from institution which

includes call centers, offices, cooperates. The 70-80% of business is coming from
institutions. In institution where white collar people work you can expect decency in
using machine from them. Key institutions are Daksh, Satyam, L&T, BSNL, TCS etc
2) FACTORY: The 5-10% of business is coming from factories, govt. offices etc.
Company supply premixes in bulk. In factories blue collar people work they cant
handle machine properly.
3) ENTERTAINMENT & LEISURE: Third channel of distribution is entertainment
which includes malls, multiplexes, cinema halls, fast food chain etc. in E&L company
focus on branding like is ties up with several accounts like PVR, CHANKYA, FUN
CINEMA, etc. Company spends 25 lakh in PVR for branding. Only 1-2% of business is
coming from this part.
4) EATING & DRNKING: In E&L company is getting only 1-2-% business. In this part
company works only work on visibility.
5) HEALTH CHANNEL: In health Channel Company mainly focus in nursing home,
hospital. Company mainly focus on hygiene factor if they find appropriate if install it
there otherwise not.
6) TRAVEL: In travel part we deal in Airport, Railway station, Bus stand, Taxi stand.
Company has ties up with Delhi Metro Corporation.
7) HOTELS: In Hotels Company focuses on mass consumption. The main business is
of Tea bags.
There is no other part where you find footfall of the consumer & you dont find the
product of Lipton.
This is price comparison chart between the Lipton, Nescafe & Georgia. In the price of
tea bag all are approximately equal. Cost of coffee premix of nestle is slightly more
than Lipton & Georgia. Hot lemon tea is only available from Lipton & Georgia.
42
PRICE COMPARATIVE CHART
A - Cost per cup of tea with tea bag

B Per cup cost of coffee premix
C Per cup cost of cardamom tea
D Per cup cost of soup
E Per cup cost of hot lemon tea
AN ANALYSIS OF THE USE OF TEA/COFFEE MACHINES IN GURGAON
Lipton
From which company do you buy the beverage vending machine services?
1
6 6
%
Nestle
1
1
29%
Fresh n Honest
8%
Georgia
18%
Costa Coffee
5%
Coffee Day Express
24%
What is an approximate number of employees of your organization?
Less than 100
24%
100-200
16%
200-300
13%
300-400
8%
400-500
3%
500-700
16%
700-1000
11%
1000-1500
0%
1500-2000
0%
43
Have you ever faced any problems with your service provider?
Delivery of the raw material was not on time
3%
No regular maintenance check ups were done
11%
Faulty machine infrastructure
0%
Late response to complaints
5%
30
79%
3%
No Complaints
Any other(please mention)
Is there any company executive who pays regular visits for a monthly check up
44
of machines?
Yes
29
76%
No
24%
How do you rate the product satisfaction?
Bad
1 - Bad
0%
5%
18
47%
16
42%
5 - Good
5%
1 - Bad
0%
5%
20
53%
13
34%
8%
Good
What kind of relations do you share with your vendor?
5 - Good
Bad
Good
There is cut-throat competition among the leading players in the packaged tea
market and HUL is the market leader with a share of around 30 per cent, followed by
Nestle at 20 per cent.
But in out-of-home business of hot beverages, HUL and Nestle have got into this
segment in a big way. They jostle for space with players such as Tata Tea and Tata
Coffee, the Coffee Day group, which has two brands including Coffee Day Takeaway
and Coffee Day Bean to Cup, Sterling InfoTech groups Fresh & Honest (promoted by
NRI businessman C Sivasankaran, who also controls the coffee retail chain Barista),
Coca-Colas Georgia Tea and Coffee and Fountain Consumer Appliances.
45
Accordingly, Nescafe leads in the market as shown by the collected data and, hence,
becomes the strongest competitor for Lipton.
According to a survey conducted by AC Neilson (released on March 04, 2006),
Nescafe continues to be more popular among instant coffee drinkers. The Rs 511
crores coffee market consists of instant and roasted and ground coffee. Nescafe
enjoys the larger share of the Rs 361-crore instant coffee market. Although, their allIndia retail numbers that have just come in suggest that Bru has established market
leadership with 44% branded coffee drinkers preferring it.
The reasons for which the corporate houses prefer vending machines to manual
methods of preparing tea and coffee:
Provides options for wide variety of products
Time saving
Less cost associated
Diet, low sugar, without sugar options available for concerned groups
Options for hot and cold drinks
Keeps record of number of cups dispensed allowing the organization to
maintain budget
An activity that is closely tied to sales is distribution. You have a factory and you
have your customers in different locations, which different purchasing patterns and
demands. What is the best way to take your product to the customers so that it
remains profitable for the firm too? That is a question answered by distribution. In
FMCG, generally we deal in indirect selling, i.e., we sell to someone who then sells it
to someone else.
There are various reasons for which the company operates this chain through
distributor sales management which can be summarized as follows:
The distributors' ability to offer a more complete package of services is not

only an inventory support, but also an administrative, technical and
logistic support. This ability, together with the quick delivery of components
to the myriad of customers that manufacturers cannot afford to support,
makes distribution a marketing channel of primary consideration.
Distributors provide an increased market share for the manufacturers
bringing your message to a larger customer base.
There can be some business that is too small for you to handle, or too much
trouble because of its location. A distributor network will take this burden and
change it into on opportunity. Because the distributor is service oriented, he
makes it a point to work with business regardless of size or scope.
Distributors provide flexibility that manufacturers do not, such as delivery
reschedules and small quantity requirements
Financial Aspects:
46
Deal is confirmed and negotiation ends at the point where both the parties are
assured of their benefits. HUL tries to ensure a return of at least 12% on
consumerables to its distributors. So, I tried to analyze the account in the following 2
ways:
a)Monthly billing of tea and coffee in the company:
Let billing = Rs 15000
12% of Rs 15000 = Rs 1800
Here, distributor is in benefit even if he does not charge monthly maintenance
charges.
Now, the customer doesnt enter into deal unless he is made acquainted with
the benefit available to him.
Let us consider a firm A having 60 employees and consumption is 120 cups per
day (say, 60 cups of tea and coffee each).
TEA:
60 * 3
= Rs 180
COFFEE: 60 * 5
= Rs 300
Total
= Rs 480
For 1 month
= Rs 480 * 25 = 12000
[Add: salary of spot boy
= Rs 1000
Add: breakage
= Rs 100]
Total
= Rs 13100
[Here, each cup of tea and coffee is assumed to be of Rs 3 and Rs 5 respectively]
Now, with Lipton vending machine this cost will minimized as follows:
TEA
= 2.75 * 60 = Rs 165
COFFEE
= 2.40 * 60 = Rs 144
Total for 1 month = Rs 309* 25 = Rs 7725
Add: Rent
= Rs 1500
Total
= Rs 9225
Benefit of customer = 13100 9225 = Rs 3875
ANALYSIS OF THE RESPONSE OF CONSUMERS TOWARDS

TEA/COFFEE VENDING MACHINES AT AIRPORTS AND METRO
STATIONS
Frequencies
47
Statistics
How many times
N
Valid
Brand
Wate of Time
100
100
100
Mean
2.50
2.23
3.03
Median
2.00
2.00
3.00
Missing
Mode
Frequency Table
How many times
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
1-2
20
20.0
20.0
20.0
2-3
31
31.0
31.0
51.0
3-4
28
28.0
28.0
79.0
more than 4
21
21.0
21.0
100.0
100
100.0
100.0
Total
Brand
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
Lipton
28
28.0
28.0
28.0
Nestle
37
37.0
37.0
65.0
Coffee Day Express
19
19.0
19.0
84.0
Georgia
16
16.0
16.0
100.0
100
100.0
100.0
Total
48
Waste of Time
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
Strongly Disagree
15
15.0
15.0
15.0
Disagree
24
24.0
24.0
39.0
Neutral
21
21.0
21.0
60.0
Agree
23
23.0
23.0
83.0
Strongly Agree
17
17.0
17.0
100.0
100
100.0
100.0
Total
49
50
FACTOR ANALYSIS
Factor analysis is a very important test, which helps us in identifying the
factors, which contribute maximum to a particular event. The factors, which
explain the maximum variance, are identified and depending on the value of
their coefficients they are grouped together and renamed to form a factor,
which explains the various components, contained in that factor.
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
Bartlett's Test of Sphericity
Approx. Chi-Square
df
Sig.
.516
210.157
36
.000
Bartlett's test of sphericity indicates whether correlation matrix is an identity matrix,

which would indicate whether variables are unrelated. The significance level gives the
result of the test. Very small values (less than .05) indicate that there are significant
relationships among variables. Thus, we can see that as our value of Bartletts
test is 0.000, therefore there is a significant relationship between the
variables.
Also the Kaiser test shows that the variables are related as the value is
0.516. On the basis of these two tests we can say that we can proceed with
the Factor Analysis on this data.
51
Communalities
Initial
Extraction
Brand Preference
1.000
.791
Taste
1.000
.591
Freshness
1.000
.923
Availability
1.000
.821
Weather Dependent
1.000
.500
Price
1.000
.658
Level of Sweetness
1.000
.912
Service Quality
1.000
.221
Variety
1.000
.627
Extraction Method: Principal Component Analysis.
Communalities indicate the amount of variance in each variable that is accounted for.
Initial communalities are estimates of the variance in each variable accounted for by
all components or factors. For principal components analysis, this is always equal to
1.0 (for correlation analyses) or the variance of the variable (for covariance analyses).
Extraction communalities are estimates of the variance in each variable accounted
for by the factors (or components) in the factor solution. Small values indicate
variables that do not fit well with the factor solution, and should possibly be dropped
from the analysis.
In our analysis, we have dropped variables whose extraction value is less than 0.5 . In
the above table, there is one value below 0.5; service quality therefore, we
remove this variable from our further analysis.
52
Total Variance Explained

Component
Initial Eigenvalues
Total
dimension0
% of Variance
Extraction Sums of Squared Loadings
Cumulative %
Total
% of Variance
Cumulative %
2.156
23.955
23.955
2.156
23.955
23.955
1.649
18.319
42.274
1.649
18.319
42.274
1.159
12.880
55.155
1.159
12.880
55.155
1.080
11.999
67.154
1.080
11.999
67.154
.999
11.105
78.260
.859
9.541
87.801
.655
7.275
95.076
.293
3.260
98.336
.150
1.664
100.000
This table gives Eigen-values, variance explained, and cumulative variance explained
for your factor solution. The first panel gives values based on initial eigen-values. The
"Total" column gives the amount of variance in the observed variables accounted for
by each component or factor. The "% of Variance" column gives the percent of
variance accounted for by each specific factor or component, relative to the total
variance in all the variables. The "Cumulative %" column gives the percent of
variance accounted for by all factors or components up to and including the current
one. In a good factor analysis, there are a few factors that explain a lot of the
variance. For principal components extraction, these values will be the same as those
reported under Initial Eigen-values
The total variance explained by the eleven factors is 67.154%
53
The scree plot helps to determine the optimal number of components. The
eigen-values of each component in the initial solution is plotted. Generally, the
components on the steep slope are extracted. The components on the shallow
slope contribute little to the solution.
The last big drop occurs between the eighth and the ninth components, so we
use the first eight components.
54
Component Matrixa
Component
1
Brand Preference
.700
.442
.164
-.281
Taste
.071
.215
-.048
.733
Freshness
.750
-.548
-.243
.034
Availability
.611
.592
.312
-.025
-.135
-.206
.268
-.606
Price
.177
.562
-.525
-.186
Level of Sweetness
.756
-.530
-.244
.009
Service Quality
.277
.171
.285
.185
Variety
.166
-.297
.697
.160
Weather Dependent

a. 4 components extracted.
This table reports the factor loadings for each variable on the unrotated
components or factors. Each number represents the correlation between the
item and the unrotated factor.
Now we need to find those eight factors that determine the choice. So we repeat the process by
applying factor analysis on the data. The data in all iteration is smaller in size than the previous one.
To eliminate the unwanted factors we see the rotated component matrix. We eliminate those
questions wherein the difference between the highest and the second highest value is less. We
continue this process till we cant eliminate any factor. So writing all the iterations we get the
following results:
Factor Analysis
55
KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
Bartlett's Test of Sphericity
Approx. Chi-Square
df
Sig.
.516
203.411
28
.000
56
Communalities
Initial
Extraction
Brand Preference
1.000
.827
Taste
1.000
.544
Freshness
1.000
.922
Availability
1.000
.822
Weather Dependent
1.000
.560
Price
1.000
.639
Level of Sweetness
1.000
.917
Variety
1.000
.739

Total Variance Explained
Component
Initial Eigenvalues
Total
% of Variance
Extraction Sums of Squared Loadings
Cumulative %
Total
% of Variance
Cumulative %
2.114
26.431
26.431
2.114
26.431
26.431
1.636
20.445
46.876
1.636
20.445
46.876
1.145
14.317
61.192
1.145
14.317
61.192
1.076
13.445
74.638
1.076
13.445
74.638
.903
11.288
85.926
.667
8.339
94.265
.309
3.861
98.126
.150
1.874
100.000
dimension0
57
Therefore we get the eight components that are taken into consideration while making the choice for
tea and coffee while they are out of their homes and for a particular brand selection. These are:
1. Brand Preference towards a particular Brand.
2. Taste of the tea/ coffee.
3. Freshness of the tea/coffee.
4. Availability of the tea/coffee machine at the airport and metro station.
5. The choice of coffee and tea also depends on the weather i.e. hot or cold.
6. The price of the cup of tea/ coffee is also an important determinant of the choice.
7. The sweetness in the tea also determines a particular brand.
8. The customers prefer a variety in the drinks like or those who drink 3-4 cups a day want
Now eliminating the negative questions we get the final factors. These are :
1. The service quality of the brand doesnt make much of a difference to the customers.
Therefore our result.
58
SWOT ANALYSIS
STRENGTHS
Strong and well differentiated brands with leading share positions.

High quality and safe products, endorsed by the Hindustan Unilever Limited Seal
of Guarantee at affordable prices.
Strong R&D capability well linked with business ensuring better controls on the
quality and consistency of product.
Integrated and efficient supply chain and well spread manufacturing units.
Distribution structure with wide reach, high quality coverage and ability to
leverage scale.
Ongoing Product innovation and renovation, to convert consumer insights
High quality manpower resources.
Attractive design and distinctive features of the machine.
Far better preventive and break down maintenance.
The distributors are required to undergo quality checks to maintain standards.
Aggressive sales team and capable and committed manpower resources.
Good market response in Delhi and Noida
Tie up with other leading chains DMRC, PVR, Airtel, HCL Technology, Reliance
Energy, Ansal Plaza to name a few.
Environment friendly cups.
Excellent range of tea and coffee premixes providing flexibility of sweetness and
diet option for concerned people.
WEAKNESSES
59
Limited success in changing consumption habits of people.

Complex supply chain configuration, unwieldy number of SKU's with dispersed
manufacturing locations.
Price positioning in some categories allows for low price competition.
Stock-out in case of much advertised flavors acts as a barrier in the retail
channels.
Much higher machine prices with lesser flexibility vis--vis competition which
leads to higher rentals/EMIs.
Low viability of revenue sharing model especially during off-season.
.Absence of ginger flavor in the premix range of tea and this is the most
preferred flavor in northern India especially during winters
Vending machine having customization like token system are highly priced
making it unviable for many corporate clients in a need to record/control
consumption.
After sales service not up to the Expected Standards.
Hot beverages are less preferred during summers.
OPPORTUNITIES
Brand growth through increased consumption depth and frequency of usage

Market growth through increased penetration in the unventured industrial
areas like Patparganj etc.
Upgrading consumers through innovation to new levels of quality and
performance.
Growing consumption in Out of Home categories and high potential market.
Changing lifestyles.
Development of alternate channels such as catering, STD/PCOs, cyber caf,
pump, etc.
Involving DSAs and courier companies for lead generation on commission basis
as have access to administration department of the corporate houses.
Leveraging technology to develop more products that provide Nutrition, Health
and Wellness.
To increase acceptance of instant Tea/Coffee amongst masses by sampling
promotion etc., who still seem to be averse to it, keeping in mind the
unpredictable preference in taste especially because of the loose control of the
same in the competitors machines.
Introduction of a consumer finance scheme by a third party e.g. GE country
finance can widen the machine placement base without utilizing distributors
capital.
Hosting the Commonwealth Games in 2010 will influence the development of
the retail infrastructure creating opportunities for vending operators to fill the
gap in the market.
THREATS
60
Low priced competition now present in all categories.

Spurious/counterfeit products.
Seasonality.
Substitutability.
Heavy competition with new entrants offering me-too products or with very
little variation with all kinds of attractive offers for getting edge in market .
BUSINESS OPPORTUNITIES
Apart from corporate world and public places like metro stations, airports and
railways stations there are some other places as well where the use of tea/ coffee
machines is prevalent. These are hospitals and educational institutions.
A short research was conducted in 5 major hospitals in the area of Karol Bagh.
Name of
Hospital
Address
Machin
e
Install
ed
Nestle
Approxim
ate
Footfall
100 cups
each of tea
and coffee
Nestle
(3)
500 cups of
tea; 300400 cups of
coffee
Sanjay
Pancholi
92123246
01
Rs.30,000
per month
0
Mahesh
Kumar
(Sodexo
Facility)
Sh.
99903341
61
98184573
Shankar Road, Karol

Kolmet Hospital
B.L Kapur
Hospital
Pusa Road, New Delhi

110005
Delhi Heart and

Lung Institute
Aram Bagh,
Jhandewalan, New
Delhi
Gurudwara Road,
Lipton
No
Contract
or
Contracto
r Details
NA
NA
61
Jessa ram
Hospital
Sir Ganga Ram

Hospital
Machin
e
Karol Bagh
East Patel Nagar, New

Delhi
Lipton
Nagesh
500 cups of
tea and
coffee
09
99539580
76
Mr. Uttam
A similar research was conducted for educational institutions in the Dwarka area:
Machin
e
Install
ed
No of
students
Georgia
2300
Name of
the
Contractor
Mrs. Geeta
Vaid
Contracto
r Details
98688144
32
Nestle
2500
Mr. Rakesh
NA
Sector-2, Dwarka
Sector-4, Dwarka,
New Delhi-110075
Nestle
700
NA
NA
Nestle
2500
NA
NA
Sector-10, Dwarka
Nestle
2500
Ms. Preeti
Bali
NA
Name of
Institution
N.K Bagrodia
Public School
Address
Sector-4, Dwarka,
New Delhi-110075
Netaji Subhas
Institute of
Technoogy
Azad Hind Fauj Marg,

Sec-3, Dwarka
Bhaskarachary
a College of
Applied
Sciences
Delhi Public
School
Sri
Ventakateswar
a international
School
UPCOMING OPPORTUNITIES
Dwarka being an upcoming sub-city in the south-west region of Delhi has many
upcoming projects in terms of institutions and offices which give full scope
for the
installation of HULs tea/ coffee vending machine.
These are
Upcoming Opportunities
Address
Status
62
Columbiasia Hospital
Ansal Palam Vihar, F Block,

Near Sector 23, Palam Vihar
Under Construction
Lal Bahadur Shastri Institute

of Management
Sector-11, Dwarka
session to begin from

July2010
GGSIPU
Sector-16C, Dwarka
Under Construction and

an estimated student
strength of 10000
Hotel Park Resort and

Shopping Mall
Sector-13, Dwarka
Under Construction
Deen Dayal Upadhyay

College
location not informed
District Court
Sector-10, Dwarka
Dr. B.R Ambedkar University
Plot-13, Sector-9, Dwarka
National Law University
Sector-14, Dwarka
construction yet to begin

Functional but no
machine
Functional but no
machine
Functional but no
machine
Super Speciality Hospital
A-1/5,Main Pankha Road,

Janakpuri
Semi functional but no

machine
Sectof-10, Dwarka
Functional but no
machine
DPC Institute of management
BIBLIOGRAPHY
There were several sources which provided me with the valuable information about
Hindustan Unilever Limited. This information helped me in enhancing the affectivity
of this presentation.
Some of my valuable sources are:
www.google.com
www.yahoo.com
www.hll.com
www.answers.com
www.indiainfoline.com
www.naukrihub.com
www.wikipedia.com
63
www.businessworldindia.com
www.financialexpress.com
www.indiacoffee.org
COMPANY MAGZINE (HAMARA)
APPENDIX
There are two questionnaires that were used in the research one for the research in
corporate world and the other for local customers who use the product on airports
and metro station.
The data sheet for the same is also enclosed along with the questionnaire.
This questionnaire will identify the tea/coffee machine used by companies in Gurgaon
and its related information
Name of the Executive *
Name of the Company *
Contact Information *
64
From which company do you buy the beverage vending machine services? *
Lipton
Nestle
Fresh n Honest
Georgia
Costa Coffee
Coffee Day Express
What is an approximate number of employees of your organization? *
Less than 100
100-200
200-300
300-400
400-500
500-700
700-1000
1000-1500
1500-2000
2000-3000
above 3000
Have you ever faced any problems with your service provider? machine *
Delivery of the raw material was not on time
No regular maintenance check ups were done
Faulty machine infrastructure
Late response to complaints
No Complaints
Any other(please mention)
Is there any company executive who pays regular visits for a monthly check up of machines? *
Yes
No
How do you rate the product satisfaction? *
65
Bad
Good
What kind of relations do you share with your vendor? *
1
Bad
5
Good
66
This questionnaire gathers information from its direct customers on the Delhi Airport
and major metro station of Delhi.
Q1. Name :
Q2. How many times do you take tea/ coffee from vending machine in a day?
1. 1-2
2. 2-3
3. 3-4
4. More than 4 cups
Q3. Do you have specific brand preference when you take tea/coffee from
vending machines?
1.
2.
3.
4.
5.
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
Q4. Which brand do you prefer the most?

1.
2.
3.
4.
Lipton
Nescafe
Coffee day Express
Georgia
Q5. Is taste an important factor when you have tea/coffee outside your homes
through vending machines?
1.
2.
3.
4.
5.
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
Q6. Do you rate freshness as important feature when you take tea/coffee
through vending machines?
1.
2.
3.
4.
5.
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
Q7. Is the availability of the brand an important factor when you make your
choice for tea and coffee?
1. Strongly Disagree
67
2.
3.
4.
5.
Disagree
Neutral
Agree
Strongly Agree
Q8. Does your choice of hot or cold tea/coffee depends on weather?

1.
2.
3.
4.
5.
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
Q9. Is the level of sweetness an important factor when you select your
tea/coffee from the vending machine?
1.
2.
3.
4.
5.
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
Q10. Does the service quality of the retailer of the vending mavhine makes an
important factor when you select your tea/coffee?
1.
2.
3.
4.
5.
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
Q11. Do you enjoy variety in your tea/coffee drinking pattern?

1.
2.
3.
4.
5.
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
Q12. Do you think drinking tea/coffee on metro stations or airports is a waste

of time?
1.
2.
3.
4.
5.
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
68

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A PROJECT REPORT

At the outset, I would like to thank Professor R.J Masilamani, faculty,

DM09/109, for the partial fulfillment of the requirements PGDM

It is further certified that I have not submitted this report to

Professor R.J Masilamani

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged

FMCG Products and Categories

Analysis of FMCG Sector

Rising income levels i.e. increase in purchasing power of consumers

THE TOP 10 COMPANIES IN FMCG SECTOR

Budget Implications on FMCG Sector

Hindustan Unilever Limited, erstwhile Hindustan Lever Limited (also called

BUSINESS OF THE COMPANY

HULs business activities are divided into four broad areas :

shareholding is distributed among about 380,000 individual shareholders and

Sunlight soap introduced in India.

Lifebuoy soap launched; Lever Brothers appoints agents in Mumbai, Chennai,

Pears soap introduced in India.

Brooke Bond Red Label tea launched.

Lux flakes introduced.

Analyzing the competitor factor and boosting up sales in gurgaon region

Vim scouring powder introduced.

Vinolia soap launched in India.

Vanaspati introduced by Dutch margarine manufacturers like Van den Berghs,

Rinso soap powder introduced.

Gibbs dental preparations launched.

Lever Brothers gets full control of North West Soap Company.

Hartogs registers Dalda Trademark.

Unilever is formed on January 1 through merger of Lever Brothers and

Hindustan Vanaspati Manufacturing Company registered on November 27;

Vanaspati manufacture starts at Sewri.

Soap manufacture begins at Sewri factory in October; North West Soap

United Traders incorporated on May 11 to market Personal Products.

Garden Reach Factory purchased outright; concentration on building up Dalda

Agencies in Mumbai, Chennai, Kolkata and Karachi taken over; company

Personal Products manufacture begins in India at Garden Reach Factory.

Reorganization of the three companies with common management but

Pond's Cold Cream launched.

65% of managers are Indians.

Unilever Special Committee approves research activity by Hindustan Lever.

Research Unit starts functioning at Mumbai Factory.

Formal Exports Department starts.

Head Office building at Back bay Reclamation, Mumbai, opened.

Signal toothpaste launched; Indian shareholding increases to 14%.

Hindustan Lever Research Centre, opens in Mumbai.

Mr. V. G. Rajadhyaksha presents plan for diversification into chemicals to

Mr. T. Thomas takes over as Chairman from Mr. V. G. Rajadhyaksha.

Construction work of Haldia chemicals complex begins; Taloja chemicals unit

Jammu synthetic Detergents plant inaugurated; Indian shareholding increases

Sodium Tripolyphospate plant at Haldia commissioned.

Dr. A. S. Ganguly takes over as Chairman from Mr. T. Thomas; Unilever

Government allows 51% Unilever shareholding.

Foods, Animal Feeds businesses transferred to Lipton.

Agri-products unit at Hyderabad starts functioning - first range of hybrid seeds

Launch of Lipton Taaza tea.

Mr. S. M. Datta takes over as Chairman from Dr. A. S. Ganguly.

Surf Ultra detergent launched.

Analyzing the competitor factor and boosting up sales in gurgaon region

HUL recognised by Government of India as Star Trading House in Exports.

HUL forms Nepal Lever Limited, HUL and US-based Kimberley-Clark

Mr. K. B. Dadiseth takes over as Chairman from Mr. S. M. Datta; Merger of

Unilever sets up International Research Laboratory in Bangalore; new Regional

Launch of Hindustan Lever Network; acquisition of the Amalgam Group