RESEARCH PROBLEM AND ITS RELEVANCE RESEARCH PROBLEM HUL is facing the problem rather challenges from

Continuous changes in the taste and preferences of the customers such problems were identified as Research Problems and the objective statement was formed on its basis. Large no. of players in the market

RELEVANCE OF THE RESEARCH The relevance of the research is to find out

Acceptability among the customers Promotional analysis

SCOPE OF THE RESEARCH The scope of the research has been limited to the JAIPUR City. Keepi ng in m ind the obj ecti ve st at ed, questi onnai re was desi gned for t he people. Subsequently a research was conducted. RESEARCH METHODOLOGY: There is large no. of FMCG companies in the market, to find the defining strategies used, the methodology used is interview and survey method. Data Collection Method For this research study, primary data as well as secondary data was collected. Primary Data It has been collected through personal contact. For this purpose both questionnaire and one-on-one interview was considered with the consumers, shop owners and distributors & suppliers of the company. Secondary data It has collected from magazines, newspaper, company literature and websites.

Data analysis:
Analyzing codes to each question were awarded. There after every questionnaire was written. After which the data were analyzed.

MAJOR FINDINGS
Major competitors D a b u r Jhandu Johnson &Johnson Cavin Care Procter & Gamble Britannia I T C Gillette

METHODOLOGY FOR RESEARCH PROBLEM Following steps were taken in to consideration, to identify the research problem1. Informal investigation Visit to the shop owners, talked to the distributors and to the consumers in the locality and surrounding areas. 2. E xternal and In tern al Analysi s Understanding customer problem Understanding the market structure 3. Situational Analysis Tastes & preferences Needs & income Major Competitors, ITC, Dabur, Procter & Gamble, Cavin Care, Amul, Johnson & Johnson, etc

A com prehensive st udy of secondary and prim ary dat a (i nform al i nt ervi ews) was collect ed t hrough specifi c questi onnai res for peopl e, shop owners and dist ributers.

SAMPLING TECHNIQUE For my survey I used Cluster Sampling I selected a sample of 100 people around the area and interviewed them according to the questionnaire. In the survey I tried to find out their preferences & tastes, their purchasing habit, are they brand loyal or they consider their friends advice or some reference group during purchasing. I also tried to find out that are they satisfied with the quality or present stature of product, did they want any change in the existing product. I also interviewed some of the shop owner and distributors and try to find out what the company is doing to sustain their customer and what new changes they are bringing in their product to gain competitive advantage from other competitors

RESEARCH INSTRUMENT Research instruments, for the purpose of primary data collection were Questionnaires. The Questionnaires were designed in two sets, one is for customers and another is for shopowners and distributors. The first set is to find out about the needs and preferences of the customers and what t hey want from i n the product and also the l evel of knowl edge about different products in the market. Second set is all about what are the steps company are taking to get about thei n f o r m a t i o n a b o u t h e c h a n g i n g p r e f e r e n c e s i n t h e t a s t e a n d n e e d s o f t h e customers and what company is doing to sustain their market position as well as to tap new market.

LIMITATIONS OF STUDY 1. The sample size may not adequately represent the national market. 2. This study has not been conducted over an extended period of time, it do not consider any changes due to changes in the sudden needs of the customer because of some sensational change or any kind of festivals.

DATA ANALYSIS For the analysis of data collected through survey work, a series of steps were followed which are given in a chronological order Each question of the questionnaire was assigned codes (coding)

Each questionnaire was punched into ms-excel sheet thus forming a data base (punching) Further the data was analyzed by using diagrams, graphs, charts etc. The graphic rating scale and ranking method was used to measure the response and attitude of the customer. Finally, an effort was made to extract meaningful information from analyzed data, which acted as a base for the recommendations.

The new Hindustan Lever: Focused on FMCG In 2000, 75% of our sales came from FMCG businesses. The rest came from several non FM C G businesses whi ch were not profi t abl e, and did not offer prospects for long-term leadership. Besides, they were a drain on the core FMCG business, both in terms of resource and focus. They decided to disengage from all non-FMCG or commodity businesses. In all, we have divested and discontinued 15 businesses including Animal Feeds, Speciality Chemicals, Nickel Catalyst, Adhesives,

Thermometers, Seeds, Mushrooms etc. With sales of Rs.1.750 crore as in 1999.Today they are a focused on FMCG company with our branded business accounting for over 90% of sales, consisting of 35 brands across 20 categories. These will be their m a i n e n g i n e s o f g r o w t h , w i t h h i g h e r l e v e l s o f r e s o u r c e c o n c e n t r a t i o n , b e i t technology, people talent or media spend. Building blocks of a strong Foods business In Foods, there is enormous growth potential in leading the evolution of consumers to branded and processed foods. Over the last few years they have focused on putting in place the building blocks of a strong Foods business. Historically their Foods business was fragmented and lacked scale. It was often commoditized with low margins. They recognized that changing food habits would require considerable investment, which the current business simply could not afford. Therefore they divested the non -value added parts like Vanaspati. They have consolidated their portfolio and improved the gross margins by over 13% through product mix and cost reduction. They have also cleared the supply chain of all old stock and geared up for fresh availability on shelf. Today, their Foods business has a healthy gross margin and a supply chain driven by freshness. The Foods business will now invest for growth through relevant innovation.

FMCG still offers enormous potential As the largest FMCG player it was up to them to reverse the down trading to realize its true growth potential. They could achieve this by raising the bar and becoming world class in what their brands offered and how they worked. Nothing less would do. Penetration levels in several of the categories and consumption levels in all of the cat egori es are l ow b y an y com pari son. Across t he world, t hey are seeing a st rong correlation between income levels and the size of FMCG markets. Over the next 10years, per capita income in India is likely to touch Chinas current levels. At those l evels, the FM C G m arket wi ll be over Rs.100 ,000 crores from a current val ue o f Rs.40,000 crores. This is an opportunity that they have to seize. Portfolio of Strong Brands Their main challenge was to reverse the down trading in the categories and re-establish t he rel evance of t hei r brands i n the mi nd of t he consum er. In 2000, the y had 1 1 0 brands, many undifferentiated and lacking scale. They chose to focus on 35 power brands covering all consumer appeal and price segments. They are already seeing the benefits. Six brands Brooke Bond, Lifebuoy, Lux, Fair & Lovely, Rin and Wheel have em erged as mega brands i n t he last five years, each wi t h sal es of m ore than Rs.500 crores. Better Value The first step was to ensure that they offer world class quality and real differentiation backed by technology to give them the advantage over low priced competition. They have invested over Rs.400 crores, or 5% of sales, in the last three years to upgrade the brands. In several cas es the y reduced pri ces t o m ake t he brands m ore affordabl e. Bett er quality and more affordable prices have increased the value to the consumer. They have also launched several low unit size and price packs for single use to make the brands more accessible to all income groups. For example, they are the first to introduce branded toothpaste in a tube at Rs.5 and a branded quality shampoo in a bottle at Rs.5. Bigger Role in Consumers Lives P erhaps t he m ost signi fi cant change has been t o m ove t he brands be yond m erel ym a k i n g f u n c t i o n a l c l a i m s t o p l a y i n g a b i g g e r a n d d e e p e r r o l e i n t h e l i v e s o f consum ers. The y had t o m ove from selli ng soap or a det ergent t o som ethi ng far more important and central to the consumers life. How

often have we heard someone say, Soap is soap is soap? Or indeed, All detergents clean clothes as well. In the case of Lifebuoy, it was only when they associated it with the promise of health and protection against disease that it claimed a larger space in the consumers mind. It moved from being a mere soap to a health essential. Today Lifebuoy, their oldest brand, has grown at over 15% for the last three years.