Documente Academic
Documente Profesional
Documente Cultură
1.
2.
Introduction
07-11
Objectives of study
12
Scope of project
13
Company profile
14-67
History of Company
14-26
Corporate profile
27-45
Products profile
46-65
Distribution system
66-67
3.
Research methodology
68-69
4.
Collection of data
70-72
5.
Data analysis
73-76
6.
Findings
77
7.
Conclusions
78
8.
79
9.
Annexure
80-82
10.
Bibliography
83
CHAPTER - 1
1. INTRODUCTION TO SOAP
1.1 SOAPS
Soaps are useful for cleaning because soap molecules have both a hydrophilic end, which dissolves in
water, as well as a hydrophobic end, which is able to dissolve nonpolar grease molecules. Although grease
will normally adhere to skin or clothing, the soap molecules can form micelles which surround the grease
particles and allow them to be dissolved in water. The hydrophobic portion (made up of a long
hydrocarbon chain) dissolves dirt and oils, while the ionic end dissolves in water. Therefore, it allows
water to remove normally-insoluble matter by emulsification.
The major uses for soap were in the household, for washing clothes and for toilet soap, and in textile
manufacturing, particularly for fulling, cleansing, and scouring woolen stuffs. Because colonial America
was rural, soap making remained widely dispersed, and no large producers emerged.
The growth of cities and the textile industry in the early nineteenth century increased soap usage and
stimulated the rise of soapmaking firms. By 1840, Cincinnati, then the largest meatpacking center in the
United States, had become the leading soap-making city as well. The city boasted at least seventeen soap
factories, including Procter and Gamble (established 1837), which was destined to become the nation's
dominant firm. A major change in soap making occurred in the 1840s when manufacturers began to
replace lye made from wood ashes with soda ash, a lye made through a chemical process. Almost all soap
makers also produced tallow candles, which for many was their major business. The firms made soap in
enormous slabs, and these were sold to grocers, who sliced the product like cheese for individual
consumers. There were no brands, no advertising was directed at consumers, and most soap factories
remained small before the Civil War.
The period between the end of the Civil War and 1900 brought major changes to the soap industry. The
market for candles diminished sharply, and soap makers discontinued that business. At the same time,
competition rose. Many soap makers began to brand their products and to introduce new varieties of toilet
soap made with such exotic ingredients as palm oil and coconut oil. Advertising, at first modest but
constantly increasing, became the major innovation. In 1893 Procter and Gamble spent $125,000 to
promote Ivory soap, and by 1905 the sales budget for that product alone exceeded $400,000. Advertising
proved amazingly effective.
In 1900 soap makers concentrated their advertising in newspapers but also advertised in streetcars and
trains. Quick to recognize the communications revolution, the soap industry pioneered in radio
advertising, particularly by developing daytime serial dramas. Procter and Gamble originated Ma Perkins,
one of the earliest, most successful, and most long-lived of the genre that came to be known as Soap
Operas, to advertise its Oxydol soap in 1933. By 1962 major soap firms spent approximately $250 million
per year for advertising, of which 90 percent was television advertising. In 1966, three out of the top five
television advertisers were soap makers, and Procter and Gamble was television's biggest sponsor,
spending $161 million. Advertising put large soap makers at a competitive advantage, and by the late
1920s three firms had come to dominate the industry:
(1) Colgate-Palmolive-Peet, incorporated as such in 1928 in New York State, although originally founded
by William Colgate in 1807;
(2) Lever Brothers, an English company that developed a full line of heavily advertised soaps in the
nineteenth century and in 1897 and 1899 purchased factories in Boston and Philadelphia; and
(3) Procter and Gamble. In 1940 the "big three"Colgate, Lever, and Procter and Gamble controlled
about 75 percent of the soap market.
The following ingredients are often used in hand dishwashing soaps and detergents; not all products
contain all ingredients.
up
can
be
treasured
part
of
morning
or
nightly
routine.
Scented or unscented, in bars, gels, and liquids, soap is a part of our daily lives. In the United States, soap
is a $1.390 million (US$)* industry with over 50 mass market brands. But in some markets the sales
potential for soap is only beginning to be realized. At the end 2000, soap was a $1.032 million (US$)*
business in India. IFF's marketing experts offer the following overview of this growing category.
In India, soaps are available in five million retail stores, out of which, 3.75 million retail stores are in the
rural areas. Therefore, availability of these products is not an issue. 70% of India's population resides in
the rural areas; hence around 50% of the soaps are sold in the rural markets
Mr. Jamshedji Tata set up India's first indigenous soap manufacturing unit when he purchased OK
Coconut Oil Mills at Cochin Kerala around 1918. OK Mills crushed and marketed coconut oil for cooking
and manufactured crude cold process laundry soaps that were sold locally. It was renamed The Tata Oil
Mills Company and its first branded soaps appeared on the market in the early 1930s. Soap became a
necessity for the moneyed class by around 1937.
*Cold process soaps are manufactured by mixing all ingredients (soap base, perfume, fillers, actives, etc.)
in a large pot and heating them up to 70 degrees while they are stirred manually. Once the mixture is
ready, the soap is plodded based on its size with the logo by a machine. In a machine made soap, the
mixing process is called milling and this is done by a rotary operated machine and not manually.
Soap manufacturers originally targeted their products to the lowest income strata in urban as well as rural
areas, positioning their brands as a way to remove dirt and clean the body. For some brands, that
positioning persists even today with a focus on removal of body odor and keeping the user healthy.
However, soap positionings are moving towards skin care as a value-added benefit.
Toilet soaps are always used in the bar formthere is no other form in the Indian marketand they are
used in the bath. Showers are a distant dream for 70% of Indias population, who live in the villages
where there is not even a regular supply of drinking water. In the urban areas, people bathe by using a
bucket of water, mug, and a bar of soap. In villages, they usually bathe by the river bank or village ponds.
Although most of the urban houses have a shower facility, showers are seldom used because of the
scarcity of water.
With increase in disposable incomes, growth in rural demand is increasing because consumers are moving
up towards premium products. However, in the recent past there has not been much change in the volume
of premium soaps in proportion to economy soaps, because increase in prices has led some consumers to
look for cheaper substitutes.
Consumer preferences are varied and are more regionally specific. India is divided into four regions:
North, East, West, and South.
Consumers in the North prefer pink colored soaps, which have floral profiles. Here the fragrance
preference is for more sophisticated profiles reflecting their lifestyles. Freshness soaps with lime
and citrus notes are also popular preferences as the climate in the North is very hot and
citrus/lime scented soaps are seen to be refreshing.
The East is not a big soap market; hence no particular preference skews.
Consumers in the West exhibit preferences for strong, impactful fragrances and somewhat
harsher profiles compared to the North. Preferences are more for the pink soaps with floral
fragrances, primarily rose, which are positioned on the beauty platform.
In the South, the skew is towards specific soap segments like the Herbal/Ayurvedic profiles and
also the Sandal profiles. Consumers here do not exhibit high brand loyalty and are ready to
experiment and try out new brands. Hence, most fast moving consumer goods companies tend to
launch their new brands in these markets, which they call test launch markets.
3. MARKETING OF SOAP
Soap is primarily targeted towards women, as they are the chief decision-makers in terms of soap
purchase. Medicated positionings like germ killing and anti-bacterial are marketed to families. About 75%
of soap can be bought through these different types of outlets:
by
the
dozen
in
rural
areas.
CHAPTER - 2
COMPANY PROFILE
HISTORY
Over 100 years' link with India
Chronology
In the summer of 1888, visitors to the Kolkata harbour 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 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
52.10% equity in the company. The rest of the shareholding is distributed among about 360,675
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 liberalisation 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 Unilever 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 Ltd 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. HUL has
also set up a subsidiary in Nepal, Unilever Nepal Limited (UNL), and its factory represents the
largest manufacturing investment in the Himalayan kingdom. The UNL 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 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 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, Speciality 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 Ltd acquired the government's remaining stake in
Modern Foods.
In 2003, HUL Ltd acquired the Cooked Shrimp and Pasteurised Crabmeat business of the
Amalgam Group of Companies, a leader in value added Marine Products exports.
Hindustan Uni lever Limited (HULL) supplies 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.
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.
THE VISION
Our vision is to continue to be an environmentally responsible organisation making continuous
improvements in the management of the environmental impact of our operations.
We will achieve this through an Integrated Environment Management approach, which focuses
on People, Technology and Facilities, supported by Management Commitment as the prime
driver.
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.
processes and ingredients and co-operate with other members of the supply chain to improve
overall environmental performance.
RESPONSIBILITIES
Corporate
The Board and the Management Committee of HUL Ltd is committed to conduct the company
operations in an environmentally sound manner. The Management Committee will:
Set mandatory standards and establish environmental improvement objectives and targets for
HUL Ltd 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 HULL site.
- HUL Ltd environmental coordinator.
The Management Committee, through the nominated environmental coordinator will:
Ensure implementation of HUL Ltd Policy on environment and compliance with Uni lever
and HUL Ltd 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 HUL Ltd operations and establish strategies for sound
environment management and key implementation steps.
Encourage 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.
INDIVIDUAL UNITS
The overall responsibility for environment management at each unit will rest with the Unit Head,
who will ensure implementation of HUL Ltd 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:
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 Uni lever and HUL Ltd 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.
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.
MANAGEMENT TEAM
Hindustan Uni Lever Limited is India's largest Fast Moving Consumer Goods (FMCG) company.
It is present in Home & Personal Care and Foods & Beverages categories. HUL Ltd and Group
companies have about 15,000 employees, including 1200 managers.
The fundamental principle determining the organisation structure is to infuse speed and
flexibility in decision-making and implementation, with empowered managers across the
companys nationwide operations.
BOARD
The Board of Directors as repositories of the corporate powers act as a guardian to the Company
as also the protectors of shareholders interest.
This Apex body comprises of a Non- Executive Chairman, four whole time Directors and five
independent Non Executive Directors. The Board of the Company represents the optimum mix
of
professionalism,
knowledge
and
experience.
MANAGEMENT COMMITTEE
The day-to-day management of affairs of the Company is vested with the Management
Committee which is subjected to the overall superintendence and control of the Board. The
Management Committee is headed by Mr. Nitin Paranjpe and has functional heads as its
members representing various functions of the Company
Executive Director
Executive Director
Foods
Ms Leena Nair
Executive Director
Executive Director
Legal
HR.
. According to Brand Equity, HUL has the largest number of brands in the Most Trusted Brands
List. Its a company that has consistently had the largest number of brands in the Top 50 and in
the Top 10 (with 4 brands).
Hindustan Unilever distribution covers over 1 million retails outlets across India directly and its
products are available in over 6.3 million outlets in India, i.e. nearly 80% of the retail outlets in
India. It has 39 factories in the country. Two out of three Indians use the companys products and
HUL products have the largest consumer reach being available in over 80 per cent of consumer
homes across India.
The Anglo-Dutch company Unilever owns a majority stake (52%) in Hindustan Unilever
Limited. HUL was one of the eight Indian companies to be featured on the Forbes list of Worlds
Most Reputed companies in 2007 [4].
OUR VISION
Our vision is to be an injury free organisation
OUR MISSION
We will bring safety on top of mind for all employees and will integrate it with all business
processes. We will realise our 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.
SAFETY PRINCIPLES
HUL Ltd 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
Note: 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
This document will form the basis for the concerned Line / Organisations in developing KPI's for
their respective functions / sites.
SCOPE OF APPLICATION
This section defines the scope of application of this Policy (where, when and to whom is this
Policy applicable).
using,
transporting,
selling
or
disposing
off
of
our
products
All Company organised business events i.e. training programmes, conferences, business
related get-togethers, annual sports etc.
the
Indian Society.
The Company believes that equal opportunity in employment for all sections of the society is a
component of its growth and competitiveness. It further believes that inclusive growth is a
component
of
growth
and
development
of
the
country.
The Company affirms the recognition that diversity to reflect socially disadvantaged sections of
the
society
in
the
workplace
has
positive
impact
on
business.
The Company does not practice nor support conscious discrimination in any form.
HUL does not bias employment away from applicants belonging to disadvantaged sections of
society if such applicants possess competitive skills and job credentials as made public.
The Companys selection of business partners is not based on any considerations other than
normal business parameters. In case of equal business offers, the Company will select a business
partner belonging to a socially disadvantaged section of society.
The Company has a written policy statement on Affirmative Action in the workplace.
The Company has an employment policy that is in the public domain. It will place such policies
and employment opportunities on its website to encourage applications from socially
disadvantaged sections of society.
The Company makes all efforts for upskilling and continual training of employees from socially
disadvantaged sections of society in order to enhance their capabilities and competitive skills.
The Company has a partnership programme with educational institutions to support and aid
students from socially disadvantaged sections of society.
The Executive Director, Human Resources is accountable to the CEO to oversee and promote its
Affirmative Action policies and programmes. The ED HR will present a biannual report to the
Board
of
the
Company
about
such
policies
and
programmes.
and
drive profitability.
Our Quality Policy describes the principles that everyone in Unilever follows, wherever they are
in the world, to ensure that we are recognised and trusted for our integrity, the quality of our
brands and
products,
and
the
high
standards
we
set.
at
the
very
heart
of
our
innovation
process.
Building and maintaining excellent systems to ensure the quality and safety
of our products
Were proactively and continuously developing our systems and processes to ensure quality and
safety throughout the whole value chain, and were setting a benchmark for the business. We
provide appropriate training and resources, and will ensure that we deliver our quality objectives
and targets. We regularly measure and improve our performance using both internal and external
measures.
We actively promote our Quality Policy and have a quality assurance organisation in place to
ensure consistency and visibility of quality standards, processes and performance indicators
across all Unilever businesses at all levels, and to anticipate and develop future quality capability
requirements.
diagnose the ills of an organisation in its relations with the public or any segment of the public, it
prescribes remedies and proceeds to administer them. It then keeps a watch on the patient to see
whether the remedies prescribed are producing the desired effect so that the medicine can be
changed if necessary after evaluating the results. Again, as in medicine prevention is considered
more important than the cure, PR believes in maintaining the good health of the corporate body
-so that drastic remedies and bitter pills may not have to be swallowed later.
Analogies may be useful in giving a general idea but can never be as precise as a definition. PR
which is now a well-established discipline therefore needs to be defined so that we may be clear
about what we are discussing when we talk about PR. It is the attempt by information,
persuasion and adjustment to engineer public support for an activity, cause movement or
institution. Public relations as and applied social and behavioral science is that function which measures, evaluates and interprets the attitudes objectives for increasing public understanding
and acceptance of the organizations products, plans, policies and personnel; equates these
objectives with the interests, needs and goals of the various relevant publics; and develops,
executes and evaluates a programme to earn public understanding and acceptance.
AN OVERVIEW
Public relations today are still a very underdeveloped field. It is growing in prominence and has
started showing results in various sectors of corporate India. More and more companies are
making use of PR to solve their problems and increase their overall corporate equity. The entire
process needs a closer look.
To gauge the effectiveness of PR in HUL Ltd over the last decade it is necessary to examine its
function and overall areas of applicability.
Social Responsibility of Business and Introduction
The need for PR arises also from the responsibility that an organisation owes to the society,
which nurtures it and enables it to function and operate. No organisation, leave aside a modern
business organisation, can function in a vacuum. It flourishes only because a particular kind of
social environment exists. This environment is often taken for granted but in times of social
turmoil when normal conditions are disrupted the dependence of the organisation on the social
environment is brought home sharply. How often have we not seen during periods of national
strife or serious political instability leading to a break down of law and order that business comes
to a standstill? While these may be extreme examples they illustrate the fact that without the
right social environment no business can exist. Thus every business organisation has a stake in
the social environment and must contribute its mite towards its continued existence and
improvement.
A business organisations responsibilities to society cover a wide area. They range from its
responsibility to supply quality products at a reasonable price and to ensure that it reaches the
consumer at the right time and place to its responsibility to contribute to the development of the
Infrastructure, to the realization of national objectives and to the identification of its interest
with the vast population of the country in which it operates.
organisation which are forward looking and farsighted are trying to make a contribution to social
causes apart from achieving their immediate and ultimate ends of producing goods for sale and
marketing them at a profit.
scholarships of various kinds, aid to hospitals and charitable institutions to actual involvement in
projects of social significance. An organisation in the USA sponsored a research fellowship to
discuss the causes of student unrest and to find solutions to the problems of tension in the
campuses.
In India too there are business organizations, which are aware of their social
responsibility and have made an effort to discharge it in accordance with their resources and the
needs of the situation. Studies on the extent of industrial pollution and ways and means of
combating it, Involvement in family planning programmes, development of low cost nutritious
food for the poorer sections of the people, studies on the causes of a States decline and the steps
needed to restore it to health are some examples of social responsibility in corporate behaviour as
practiced in India in recent years. But there is little doubt that instances of such conduct are few
indeed in relation to the enormity of the problems facing a country as vast as India with a
burgeoning population a large part of it living below the poverty line.
PR and Environmental Path of HULL
The present generation has, quite understandably, made the environment a focus of attention.
With growing environmental awareness, there is now a clear perception that our activities affect
not only the air we breathe, but even the air which regulates our climate. More importantly,
uncontrolled activities cannot be sustained without loss of plant and species, natural habitats,
coast and hinterland and the decay of buildings, places of natural beauty or historic interest.
Hence, the need for a genuine commitment to sustainable development which is integrated with
the national policy on industry, energy, transport, trading and planning.
In the above context, public relations professionals are well placed to direct attention to
environmental issues and can make a unique contribution to public and professional debate, and
to environmental education. In fact PR has to live up to its environment education. In fact PR has
to live up to its environmental responsibilities even when clear, universally agreed targets are
still lacking in many issues. The responsible PR person must ensure that his organisation is
greener than green on all the major issues according to current opinion, demonstrate to the world
at large that this is so, and, for the future, help form opinions and set the standards for the
organisations own as well as the common good.
In a nutshell, environment is now a corporate concern and todays PR persons have to build up
comprehensive communication programmes, internal as well as external, which involve listening
just as much as talking.
Now, environment is no more just a slogan, it is a key consumer issue.
PR today must:
*
Encourage environment audits to determine what the organisation has done and is doing
in relation to the environment.
Social Responsibility as Public Relations at HUL Ltd: A citizens role extends beyond his or
her call of duty. A responsible corporate citizen needs to look beyond the financial numbers of
sales and profit growth, from year to year.
HUL Ltd is committed to the development of the community around its manufacturing
complexes. Over the years, HUL Ltd has not just supported communities financially, but has
worked towards providing people with skills to earn a sustainable livelihood. HUL Ltd longterm aim is to raise economic standards of these communities, through self-sustainable measures.
PR Role in Image and Identity: It is true that corporate image concerns the industrial marketer
directly as brand image is crucial for the consumer market. The ordinary consumers, while
oblivious of the name of the manufacturer, can easily identify the brands of consumer products.
Repeat this test for industrial goods : the same respondents are aware of the name of the
manufacturers but many wont be able to name the industrial products. Interestingly, a third set
of organisation would be known both for their industrial or consumer products as well as for
their distinct corporate image. Where does corporate PR stand in these diverse settings?
Although easier desired than achieved, PR attempts to create the desired image by its
involvement in all the factors of corporate identification programmes.
GOVERNMENT RELATIONS : A government relation has two facets to it. Firstly, the
PR for the government (as an organisation) and Secondly, PR with the governments as the target
group. Both are important and very needed by corporations.
Public relations for the government involves mobilising public support for governments activity,
for instance, family planning, control, environmental protection, beautification of cites, etc. the
company generally sponsors some of these activities by providing monetary help or other
resources. The basic objective of the company is to build relations with the governments, and
also help for the good of the community of society.
Public relations with the government involves keeping the governmentpoliticians and
bureaucratson your side. It envisages maintaining good links with the government, which will
be of benefit to the company in its overall business plans and operations. Public relations with
the government in some ways are quite difficult and demanding. It requires special planning and
efforts for the organisation to be successful. A government, local or national, comprises many
ministries, departments, individuals and personalities. Public relations people have to acquaint
themselves with the working of the government, and the intricacies and people involved at
various levels, and then handle things accordingly to be able to achieve what they have set out to
achieve.
The government should not be looked at as an adversary. In fact, you should make all efforts to
help the government and support its activities and policies as far as possible. Government
leaders must be kept informed from your side about the organisations activities and policies
especially those which are contributing to the welfare and development of the state or the nation.
Such relations will be mutually beneficial in the short-term and the long-term. Corporations
should, however avoid getting involved with politics and political issues.
When a
company gets media coverage, it is not always flattering. Business is always vulnerable to
attacks by the media. Media can often aggravate problemsespecially crises. As in the case of
Union Carbide and HULL a few years ago. Hence, media, particularly the Press has to be
handled very carefully. The media must be kept on your side. All efforts must be made to ensure
this strategically. It takes years to build a good image, but to destroy it you need just a few bad
reports in the media.
It is important to build a working rapport with the media. You cannot afford unnecessary
reactions and distortions. If you do go to the media then always go with a strategybe selective
in the choice of media, use only influential media (especially publications in the Press), do not
spread your communication too thin, go for quality rather than quantity. Selective and in-depth
coverage is what you must aim at, as it is more effective and produces the desired results. let
your communication be complete honest, and backed with hard facts. The organisation must be
able to live up to its claims and promises in media, otherwise you can be in for further problems.
The efforts made by HULL in this respect have been orchestrated well to build image as well as
to counter negative publicity.
FINANCIAL RELATIONS : With the growth of the Indian economy and the business
sector, management of financial promotions and PR has taken on a new dimension. HUL Ltd is
making special efforts to ensure the goodwill of their shareholders, investors, financial
institutions, and the rest of the financial community. This is being done in the mass media and
specialised media ranging from annual reports to special brochures to audio-visuals, video films,
and even corporate advertising in the Press and television.
The main target group of a company in financial PR is its shareholders and potential investors.
They have to be given information they are entitled to have, and they have to be kept interested
in the company. Public relations must establish, maintain, and improve the companys image
and reputation so that it can obtain funds from the public and the financial institutions on the
most favorable terms when it desires so The financial and business Press, today, is very
important in achieving this objective,
The importance of financial PR and the need for it is seen from the number and growth of PR
agencies specialising in financial promotion, advertising and PR management in India. These
include well-known names like Pressman, Clea, and Sobhagya, now a host of others. They
provide their clients a wide range of services and expertise in PR and advertising.
CUSTOMER RELATIONS : In the past PR and marketing were considered separate and
unconnected activities of business in a company. Today, PR has a role to play in marketing not
only to build image, but to also help solve problems concerning a companys products
Or services among consumers or other special groups, and generally protecting the companys
reputation at the marketplace. Public relations with customers, and with suppliers, in industrial
products/services marketing at the institutional level is gaining more and more importance today.
In todays competitive market customers opt for products that are known and have an image, and
are backed by quality and good after sales service. Marketing people cannot ignore public
opinion on such aspects. In the long run, unfavorable opinions certainly affect sales. Public
relations can help in controlling and setting right some of these opinions; it is therefore essential
for companies to assign some of their attention and resources to develop PR in marketing.
Industrial relations concern the staff and workers in their relationship, as individuals and as a
group, with the management.
related to wages, other monetary benefits, conditions of work, and so on. But through timely PR
and proper communication many of these problems can be avoided or overcome altogether.
Manufacturer
Depot
Distributor
Whole seller
Retailer
Consumer
CHAPTER - 3
4. RESEARCH METHODOLOGY
8.1 Research Design:
The purpose of this study is to gain consumer insights about SAVLON bath soap and comparing
it with DETTOL and LIFEBUOY which are the two main soap brands in Health category in the
context of Mumbai Region.
The data analysis of this research was represented on qualitative as well as quantitative manner.
Application packages like Office XP (Microsoft Word, Microsoft Excel) and SPSS were used.
8.6
Data Collection:
8.6.1 Primary Data;
Questionnaires for in-depth discussions with various respondents to be interviewed during
primary survey were designed during this phase. List of contacts were also prepared during
this phase. This involved in-depth face-to- face discussions using semi-structured
questionnaires with various respondents.
8.6.1.1 Pilot field survey
Pilot field survey was conducted with the intention of testing the validity of the
questionnaires for fulfilling the objectives to the study. The questionnaires and the
list of contacts were modified based on responses of pilot field survey.
8.6.1.2 Detailed field survey
Detailed field survey was launched simultaneously at various pre-determined
centers; information was collected through face-to-face interviews with
respondents using semi-structured questionnaires. Questionnaires were also sent
through mail and responses were collected.
8.7 Overview:
Research Type:
Objective
Data collection:
Research approach:
Survey method
Semi-Structured
Size:
50
Research Sampling:
Convenient sampling
5. DATA ANALYSIS
From
the
above
doughnut
chart
we
can
see
that,
among the
total
respondents 38% people advocated for antiseptic soap and 33% people advised for beauty care soap.
After that, 10% people directed about both skin care soap and flower extract soap. Also, there is little
number of respondents which is only 3% people recommended about medicated soap, herbal soap and
fruit extract soap. So, it is clearly viewed that, antiseptic soap and beauty care soap are more preferable
among all the respondents.
9.1.2
From the
above
column
diagram
we
can
see
that,
while
purchasing new soap both the respondents firstly look for brand and their percentage is 26.67%. Then,
secondly they prefer both antiseptic quality and beauty care quality and for these the percentage is
23.33%. After that, 10.00% consumers seek for both price and ingredients. Again, 6.67% people search
for both availability and packaging. Finally, only 3.33% people hunt for few other factors which are pack
size, advertisements, and shopkeepers opinion. Thus companies should majorly focus on the brand and
its antiseptic and beauty care qualities.
We can see from the above doughnut that, among the total respondents 58% preferred Dettol as against
Lifebuoy and savlon, only 24% preferred lifebuoy and a mere 18% respondents preferred Savlon. Thus
we can make out the acceptance level of dettol is much higher than the other two brands of soap.
Price
We can see from the above doughnut that, among the total respondents 44% people said that Price is an
important factor while purchasing soap. 28% respondents stated that price is somewhat important while
purchasing and those are mainly beauty and skin care seekers. Only 12% respondents told that price is the
most important factor while purchasing soap
.
We can see from the above doughnut that, among the total respondents only 14% people said that Brand
name is an extremely important factor while purchasing soap. 30% respondents selected for both
important and somewhat important. However 26% people stated that Brand Name is not at all important
while purchasing soap.
9.1.4.3 Fragnance
We can see from the above doughnut that, among the total respondents 42% people said that Fragrance is
an important factor while purchasing soap. 24% respondents stated that fragrance is somewhat important
while purchasing and those are mainly beauty and skin care seekers. Only 10% respondents told that
fragrance is the most important factor while purchasing soap.
9.1.4.4. Hygiene
We can see from the above doughnut that, among the total respondents 48% people said that Hygiene is
an extremely important factor while purchasing soap, these are mainly health conscious consumers. 46%
respondents stated that Hygiene is important and somewhat important while purchasing soap. Only 6%
respondents told that Hygiene is the not important factor while purchasing soap. This shows the
importance of hygiene in the soap industry.
Freshness
We can see from the above doughnut that, among the total respondents almost 75% people said that they
consider freshness while purchasing soap. The remaining respondents stated that freshness is not that
important while purchasing soap.
9.1.4.5 Lather
We can see from the above doughnut that, among the total respondents almost 75% people said that they
consider lather while purchasing soap. The remaining respondents stated that lather is not that important
while purchasing soap.
9.1.5
In the column graph above we can see that 37 respondents have rated Dettol as a good soap for hygiene
and only 7 have rated it as a bad soap. Thus it shows that consumers who want hygienic soap have dettol
in their mindset.
9.1.5.2 Savlon
In the column graph above we can see that 29 respondents have rated Savlon as a good soap for hygiene
and only 7 have rated it as a bad soap. Thus it shows that consumers who are aware about savlon rate it as
a better soap than dettol. Thus the company should market savlon soap more effectively.
9.1.5.3 Lifebuoy
In the column graph above we can see that 18 respondents have rated Lifebuoy as an average soap for
hygiene compared to Dettol and Savlon. 24 respondents have rated lifebuoy as a good soap for hygiene.
9.1.6
In the column graph above we can see that only 8 respondents have rated Dettol as a very good soap for
fragrance may be because of its hospital kind of smell.
9.1.6.2 Savlon
15
12
In the column graph above we can see that 24 respondents have rated Savlon as a good soap for
fragrance. 14 respondents have rated savlon as not a good soap for fragrance.
9.1.6.3 Lifebuoy
In the column graph above we can see that only 5 respondents have rated Lifebuoy as a very good soap
for fragrance. 14 respondents have rated lifebuoy as not a good soap for fragrance.
10-FEB-2010 16:10:38
Comments
Input
Missing
Handling
Value
Data
C:\Documents
Settings\indira\Desktop\spss
input.sav
Filter
<none>
Weight
<none>
Split File
<none>
N of Rows in Working
Data File
50
Definition of Missing
Cases Used
Syntax
Resources
and
savlon\spss
CROSSTABS /TABLES=Awareness BY
savlon_information
/FORMAT=
AVALUE TABLES /STATISTIC=CHISQ
/CELLS= COUNT /COUNT ROUND
CELL .
Elapsed Time
0:00:00.55
Dimensions Requested
Cells Available
116508
Cases
Valid
N
Missing
Percent
Total
Percent
Percent
Awareness * savlon
information
50
100.0%
.0%
50
100.0%
savlon information
Awareness
Total
Total
Advertising
WOM
Retail
Display
Aware
22
34
Not Aware
16
31
10
50
Any other
Through the above table of cross tabs which compared Awareness level and information about savlon, we
can conclude that majority of the respondents were aware about savlon soap through Advertisng and then
through Retail display. From the total of 50 respondents 34 respondents were aware and 16 were not
aware about savlon soap even though they had heard the name before.
Value
Df
Asymp. Sig.
(2-sided)
Pearson Chi-Square
1.040(a)
.792
Likelihood Ratio
.982
.806
Linear-by-Linear
Association
.059
.807
N of Valid Cases
50
a 5 cells (62.5%) have expected count less than 5. The minimum expected count is .96.
Output Created
10-FEB-2010 16:12:33
Comments
Input
Missing
Handling
Value
Data
C:\Documents
Settings\indira\Desktop\spss
input.sav
Filter
<none>
Weight
<none>
Split File
<none>
N of Rows in Working
Data File
50
Definition of Missing
Cases Used
Syntax
Resources
and
savlon\spss
CROSSTABS
/TABLES=Soap_Preference
BY
Important_Feature /FORMAT= AVALUE
TABLES
/STATISTIC=CHISQ
/CELLS= COUNT /COUNT ROUND
CELL .
Elapsed Time
0:00:00.00
Dimensions Requested
Cells Available
116508
Cases
Valid
Soap Preference
Important Feature
Missing
Total
Percent
Percent
Percent
50
100.0%
.0%
50
100.0%
Important Feature
Soap
Preference
Total
Price
Brand
Name
Fragnance
Hygiene
Freshness
Lather
15
27
savlon
Lifebuoy
14
10
19
50
dettol
Total
Through the above table of cross tabs which compared Soap preference and important feature for
purchasing a soap, we can conclude that majority of the respondents selected hygiene as a most important
factor for purchasing a soap. However for Lifebuoy unlike Lifebuoy the most important factor was price.
From the total of 50 respondents 27 respondents preferred Dettol, 14 preffered Lifebuoy and the
remaining 9 respondents preferred Savlon over the other health brands of soap.
Value
Df
Asymp. Sig.
(2-sided)
Pearson Chi-Square
15.441(a)
10
.117
Likelihood Ratio
16.319
10
.091
Linear-by-Linear
Association
3.305
.069
N of Valid Cases
50
a 15 cells (83.3%) have expected count less than 5. The minimum expected count is .54.
H0(2): Dettol and Savlon soap are preferred on basis of hygiene and lifebuoy is preferred on basis of
price.
H1(2): Dettol and Savlon soap are not preferred on basis of hygiene and lifebuoy is also not preferred
on basis of price.
Since the level of significance of the chi square is less than 0.5 we accept the null hypothesis that Dettol
and Savlon soap are preferred on basis of hygiene and lifebuoy is preferred on basis of price.
Notes
Output Created
14-FEB-2010 23:41:39
Comments
Input
Data
Filter
<none>
Weight
<none>
Split File
<none>
N of Rows in Working
Data File
Missing Value
Handling
Definition of Missing
Cases Used
50
User-defined missing values are treated as missing
in the analysis phase.
In the analysis phase, cases with no user- or
system-missing values for any predictor variable
are used. Cases with user-, system-missing, or outof-range values for the grouping variable are
always excluded.
Syntax
DISCRIMINANT /GROUPS=cust_percp(1 2)
/VARIABLES=price quality brand /ANALYSIS
ALL /PRIORS EQUAL /STATISTICS=UNIVF
RAW TABLE /CLASSIFY=NONMISSING
POOLED .
Resources
Elapsed Time
0:00:00.02
Unweighted Cases
Valid
Excluded
Percent
50
100.0
Missing or out-of-range
group codes
.0
.0
.0
Total
.0
50
100.0
Total
Group Statistics
cust_percp
Valid N (listwise)
Unweighted
fav
unfav
Total
Weighted
price
39
39.000
quality
39
39.000
brand
39
39.000
price
11
11.000
quality
11
11.000
brand
11
11.000
price
50
50.000
quality
50
50.000
brand
50
50.000
Wilks'
Lambda
df1
df2
Sig.
price
.987
.615
48
.437
quality
.828
9.993
48
.003
brand
.985
.746
48
.392
INTERPRETATION:
This table indicates the significance of each and every variable together.
The significance of each of the variable is less than 0.5. Hence it is a good fit.
Analysis 1
Eigenvalues
Function
Eigenvalue
% of Variance
.347(a)
Canonical
Correlation
Cumulative %
100.0
100.0
.507
INTERPRETATION:
The significance of canonical correlation is greater than 0.5, hence its significant.
So there is no need of including more variables.
Thus it tells that the selection of variables to categorize the respondents is correct. i.e. the above
mentioned independent variables can differentiate the respondents.
Wilks' Lambda
Test of Function(s)
1
Wilks'
Lambda
.743
Chi-square
13.842
df
Sig.
3
.003
INTERPRETATION:
If the significance is greater than 0.5 the variables correlate/overlap each other and if its less than 0.5 the
independent variables are different from each other. In this case, significance is only .001, which shows
that the variables have high discriminating power as its very close to zero.
Function
1
Price
.190
Quality
.941
Brand
.741
INTERPRETATION:
This table shows the importance of a variable for a particular study, in this case Quality and brand are
more important to determine the loyalty of the customers.
Structure Matrix
Function
1
.775
Quality
Brand
.212
Price
.192
Pooled within-groups correlations between discriminating variables and standardized canonical discriminant functions Variables
ordered by absolute size of correlation within function.
INTERPRETATION:
This table shows the extraction of information from the total responses.
Var1 77.5% information was used
Var2 21.2% information was used.
Var3 19.2% information was used.
Function
1
Price
.270
Quality
0.555
Brand
-.976
(Constant)
-1.545
Unstandardized coefficients
INTERPRETATION:
This table forms an equation so as to find out the level of risk involved in the study.
If the value is positive it denotes that the respondent is at low risk and vice-versa.
Y= -1.545 + 0.270 (Price) + 0.555(Quality) - .976 (Brand)
Eg:
Price Rs 15
Quality 7 out of 10 (rating)
Brand 6 out of 10 (rating)
Function
cust_percp
Fav
-.306
Unfav
1.086
Classification Statistics
Processed
50
Excluded
Used in Output
50
cust_percp
Prior
Cases Used in
Analysis
Unweighted
Weighted
Fav
.500
39
39.000
Unfav
.500
11
11.000
Total
1.000
50
50.000
Classification Results(a)
Predicted Group
Membership
cust_percp
Original
Count
Fav
unfav
Total
31
39
11
Fav
79.5
20.5
100.0
unfav
18.2
81.8
100.0
unfav
%
Fav
INTERPRETATION:
This table shows the final result wherein, out of 39 favourable respondents, 8 are unfavourable and out of
11 unfavourable respondents 2 are favourable, hence there is approx. 80% accuracy in the classification of
groups.
and out of the remaining who heard of savlon soap from friends and family only 5%
tried it.
13. The major difference cited by most of the respondents was that they trusted dettol for
their family.
14. Some of the respondents said that Dettol has more number of variants as compared to
savlon and lifebuoy.
11.2 RECOMMENDATIONS
1. Even though savlon has better healing capacity than dettol the company failed in its
positioning. Savlon was positioned as first aid solution. To compete with a major brand,
the company should position it firmly and savlon could have been positioned as the germ
fighter with no pain or burns.
2. Promotion campaign of savlon was also not competitive enough, although it generated
lots of interest in the minds of consumer which made them try this product but the
absence of burning sensation miserably harmed the success of the product.
3. The failure of savlon antiseptic did not let the savlon soap brand to come up and it hardly
changed the perception of consumers.
4. Thus company should had promoted the advantages of savlon rather than its features.
They did it in later stage which was of mere use.
5. Company should thrive on innovation and for this more number of variants should be
introduced and if possible soap with combined attributes (health as well as beauty care)
should be introduced which can attract consumers.
6. Lifebuoy is more preferred because of its price and durability, so efforts need to be taken
to improve savlons durability and not increasing the price.
7. More investment should be made in the research and development of the soap as it can
provide an USP to the brand and company as a whole.
8. Company should increase the availability of the product, in most of the kirana stores
(which are the prime destinations of purchasing soaps for consumers) savlon soap was
not available.
12. CONCLUSION
The soap industry in India has been under a change with the advancement of technology. The major
players in soap industry HUL, J&J, P&G, etc are having a stiff competition to gain maximum market
share. The toilet soap sales are declining, eroded by liquid and gel cleansers for the increasingly popular
shower toiletries sector. Bar soap producers are fighting back, taking ingredients such as aromatherapy
oils and natural extracts to provide added functionality and consumer appeal.
From the survey conducted it can be concluded that even though savlon has better attributes than dettol it
is unable to compete because of the exceptional strategies adopted by HUL. J&J were not expecting the
counter attack of HUL and were also weak in their positioning which was a hurdle in their success.
a. Brand Name
b. Anteseptic Quality
c. Beauty care
Any soap which achieves expertise in atleast two of the above mentioned three factors does very well in
the Indian market.
13.2 WEBLIOGRAPHY
http://www.encyclopedia.com/doc/1G2-3401803910.html
www.google.com (Search Engine).
https://www.iffxpress.com/xpress/na/xhome.nsf/0/83688E1B4D5787D480256CC900631457
http://www.jnjindia.com/CPD_WoundCare.pdf
http://marketingpractice.blogspot.com/2009/01/savlon-heals-without-hurting.html
http://www.naukrihub.com/india/fmcg/overview/soaps/
http://www.scribd.com/doc/21431229/Soap-Prgt-Mba-II
http://www.scribd.com/doc/18275319/Internship-Report-by-Nusrat-Omer
http://www.unilever.com/brands/personalcarebrands/lifebuoy.aspx
14. ANNEXURES
14.1 QUESTIONNAIRE
1. Person details:
a. Name: __________________________Age:_______ Gender_______
Address:_____________________________________________
b. Marital status:_____________________________________________
c. No. of Family members: _______________________________
2. Currently which soap are you using and why?
_______________________________________________________________
3. As you hear about the following brands what comes to your mind first?
Savlon: ______________________________________________________
Dettol: ______________________________________________________
Lifebuoy:_____________________________________________________
4. Which soap do you prefer? (Rank them)
1. Dettol
2. Savlon
3. Lifeboy
__________
__________
__________
5. Please rate for the similarity between two brands. (Savlon and Dettol)
(5= very similar and 1= not at all similar) (Only in coloured cells)
DETTOL
SAVLON
PRICE
FRAGRANCE
SIZE
FRESHNESS
PRICE
FRAGRANCE
SIZE
FRESHNESS
6. What difference you think is there in both brands? (SAVLON and DETTOL)
7. Please rate for the similarity between two brands. (Savlon and Lifebuoy)
(5= very similar and 1= not at all similar) (Only in coloured cells)
LIF
SAVLON
PRICE
FRAGRANCE
SIZE
FRESHNESS
EBUOY
PRICE
FRAGRANCE
SIZE
FRESHNESS
8. What
difference
you
think
is
there
in
both
brands?
(SAVLON
and
LIFEBUOY)___________________________________________________
9. To what extent is each of the following features an important consideration to you in
selecting your soap?
Features
Extremely imp
Price
[ ]
Brand name
[ ]
Fragnance
[ ]
Hygiene
[ ]
Freshness
[ ]
Lather
[ ]
imp
[ ]
[ ]
[ ]
[ ]
[ ]
[ ]
somewhat imp
[ ]
[ ]
[ ]
[ ]
[ ]
[ ]
10. Please rate the foll soap brands In hygiene (1- 5) (1 = very good, 5= very bad)
Dettol
__________
Lifebuoy
__________
Savlon
__________
11. Please rate the foll brands in fragrance (1- 5) (1 = very good, 5= very bad)
Dettol
__________
Lifebuoy
__________
Savlon
__________
12. Are you satisfied with SAVLON soap? (If YES answer Q13, if NO answer Q14.)
a. YES
b. NO
13. What was the reason for your satisfaction?
15. Compared to other soaps (such as Dettol and Lifebuoy) that are available, would you say
that SAVLON is? (tickmark)
Much better
Somewhat Better
______
______
______
______
______
_________
_________
_________
Other
_________