FMCG - PUBLIC RELATIONS (HUL)

Introduction to FMCG

FMCG

Fast moving consumer goods (FMCG’s) constitute a large part of consumers’ budget in all countries. The retail sector for FMCG’s in India is in the process of a drastic transformation. The transformation of the retail market is likely to have a long-lasting impact on wholesale trade and the distribution of FMCG’s as well. Traditional wholesalers are the most likely losers, because large retailers tend to buy directly from suppliers.

New, “modern” retail formats, like chain stores and hyper/supermarkets, have rapidly diffused in almost all major urban areas, and increased their market share at the expense of traditional formats (grocery shops, green groceries, etc.) in the last couple of decades. Moreover, alternative consumption forms, like restaurants, catering services and hotels, rapidly increase their share in the consumption of FMCG’s.

Some of the marketing practices applied by retail companies (price flexing, listing fees, slotting fees, etc.) are potentially anti-competitive. However, these practices do not yet seriously distort competition in the retail market, because retailers seem to lack a significant degree of market power even at the local level. The retail market in India seems to be quite competitive. There are no legal restrictions on entry, and no discrimination against foreign companies.

Foreign entry in the FMCG market was observed since the early 1990s, and some of the large multinational companies established their braches in India either through majority-owned subsidiaries or joint ventures with large domestic companies. New foreign entry in the market is expected. However, the market is quite competitive and firms operate on a very thin profit margin. The Competition Authority needs to pay a close attention to changes in the retail market.

FMCG is one of the most dynamic domains of the business world. FMCG products are those that move off the shelves in retail outlets very quickly. In the Fast Moving Consumer Goods (FMCG) sector, one needs to be fast in translating the ideas into new products. There is a requirement to create the products that people trust, enjoy and use in their daily lives. Advertising and marketing have a vital role to play in this.

The Indian FMCG sector is the fourth largest sector in the economy. With a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a well established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage.

The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capital consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products.

Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry.

Introduction to PR

Public relations (PR) is the practice of managing the flow of information between an organization and its publics. Public relations - often referred to as PR - gains an organization or individual exposure to their audiences using topics of public interest and news items that do not require direct payment. Because public relations places exposure in credible third-party outlets, it offers a third-party legitimacy that advertising does not have. Common activities include speaking at conferences, working with the press, and employee communication.

PR can be used to build rapport with employees, customers, investors, voters, or the general public. Almost any organization that has a stake in how it is portrayed in the public arena employs some level of public relations. A number of specialties exist within the field of public relations, such as Media Relations, Investor Relations or Labor Relations

According to our public opinion we came to know that the most of the people in our country feel that HUL apples to then the most as a brand in FMCG products followed by P&G and AMUL out of the top 5

So we started to think why is HUL such a good brand and how is it so prominent with the masses what is it that makes it known to all ???

We went on the net searching for the reason and we found the reason actually the REASONS...............

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PRESENT STATURE

SEGMENT COVERED

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Reports on the social responsibility by hull

http://timesofindia.indiatimes.com/articleshow/416021.cms

Merging company	Merged with	Appointed date	Effective date	Date of allotment	Share ratio	Value of fraction (Rs.)
Kothari General Foods Corporation Ltd.	Brooke Bond India Ltd.	1-Jan-92	1-Jan-92	30-Jun-92	21:1	7.00
Tea Estates India Ltd.	Brooke Bond India Ltd.	1-Jan-93	1-Jun-93	24-Aug-93	10:12	35.25
Doom Dooma India Ltd.	Brooke Bond India Ltd.	1-Jan-93	1-Jun-93	24-Aug-93	10:11	35.25
Kissan Products Ltd.	Brooke Bond India Ltd.	1-Apr-93	20-Jan-94	22-Jan-94	1:100	Not applicable
Lipton India Ltd.	Brooke Bond India Ltd. [name changed to Brooke Bond Lipton India Ltd. (BBLIL)]	1-Jul-93	9-Mar-94	16-May-94	10:9	48.99
The Tata Oil Mills Company Ltd.	Hindustan Lever Ltd.	1-Apr-93	28-Dec-94	5-Apr-95	15:2	38.86
BBLIL	Hindustan Lever Ltd.	1-Jan-96	21-Mar-97	16-May-97	20:9	52.82
Pond's (India) Ltd.	Hindustan Lever Ltd.	1-Jan-98	15-Oct-98	3-Mar-99	4:3	525.00
Industrial Perfumes Ltd.	Hindustan Lever Ltd.	1-Jan-99	9-Feb-00	23-Feb-00	5:2	Not applicable
International Bestfoods Ltd.	Hindustan Lever Ltd.	1-Jun-01	26-Sep-01	20-Oct-01	3:2*	73.84
Aviance Limited	Hindustan Lever Ltd.	1-Jun-01	25-Sep-01	Not Applicable	Not Applicable	Not Applicable
Tea Estates India Ltd. (Formerly known as’Thiashola Tea Company Limited’) (TEI)	Demerger from Hindustan Lever Limited	1-Apr-05	1-Dec-05	02-Dec-05	^	Not Applicable
Doom Dooma Tea Company Ltd (Formerly known as ‘Daverashola Tea Company Limited’) (DDT)	Demerger from Hindustan Lever Limited	1-Apr-05	1-Dec-05	02-Dec-05	^^	Not Applicable
Lever India Exports Limited	Hindustan Lever Ltd.	1-Apr-05	30-Dec-05	Not Applicable	Not Applicable	Not Applicable
Lipton India Exports Limited	Hindustan Lever Limited	1-Jan-05	30-Dec-05	Not Applicable	Not Applicable	Not Applicable
Merryweather Food Products Limited	Hindustan Lever Limited	1-Jan-05	30-Dec-05	Not Applicable	Not Applicable	Not Applicable
TOC Disinfectants Limited	Hindustan Lever Limited	1-Apr-05	30-Dec-05	26-Apr-06	500:1 **	Not Applicable
International Fisheries Limited	Hindustan Lever Limited	1-Jan-05	30-Dec-05	26-Apr-06	1:1***	Not Applicable
Vashisti Detergents Limited	Hindustan Lever Limited	1-Jul-05	28-Feb-06	10-Apr-06	10:1****	28.00
Modern Food Industries (India) Limited & Modern Food and Nutrition Industries Limited	Hindustan Lever Limited	1-Oct-06	30-Mar-07	Not Applicable	Not Applicable	Not Applicable
Shamnagar Estates Private Limited, Jamnagar Properties Private Limited and Hindustan Kwality Walls Foods Private Limited (now known as Daverashola Estates Private Limited)	Demerger of certain Units from Hindustan Lever Limited	1-Nov-06	29-Mar-07	Not Applicable	Not Applicable	Not Applicable

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Top Advertisers of FMCG sector in Print during 2008

• During 2008, 'Ratan Ayurvedic Sansthan', 'Hindustan Unilever' and 'Multani Pharmaceuticals Ltd' were the top 3 advertisers of FMCG sector in Print.

NAME - Ekanath M. Mulki,

Post - Sales Executive, CSD channel(supplies to canteen stores department, ministry of defence)

Experience - Ex-Lakme LTD.(24 yrs),HUL (8yrs), total service 32 yrs. Lakme was taken over by HUL(then HLL) in the year 1999-2000.

1. About the company(history)

A: Anglo-Dutch multinational company, parent company UNILEVER.

2. About the PR activities (internal or external)and why is it internal or external??

Internal / External . Being a very big company it is not really easy to have just a internal or external system it depends on the firm and its need

3. Why was the name changed from HLL to HUL ?

A:Parent company wanted Unilever name to precede with the name of the country in each country viz. Unilever Nepal, Unilever Pakistan. As per this direction the company name should have been ‘Unilever India”. However, this did not work in India as the name ‘Hindustan’ was so embedded in the minds of the consumers that UNILEVER was incorporated in the middle of the name making it ‘Hindustan Unilever Limited’.


4. How does HUL position it self in consumer minds ?

Its no.1 in FMCG sector. Atleast 1 product from the portfolio of HUL is consumed each day in every household.(omnipresent)

5. Employee relations and work culture?

A: Highly professional in approach. Well trained work force. Touted as the training centre of Industries. Promotions are purely on ratings/gradations.

6. Employee engagement programs (motivational) ?

A: All have to go thru SOL e-courses(standard of leadership) specifically designed for the company personnel. Classroom training also given acc. To the job specifications.

7. Competitive strategies (to keep itself ahead as market leader) ?

A:having a firm foundation so the rivals are finding it NOT SO EASY to take the market share. Main competitor are: PnG, Colgate, Pamolive, Nestle{MNC}, Godrej, Dabur ITC{Indian}

8. Some light on the Shakti programme ?

A: Specifically designed to empower the rural women. Highly successful. Coz of it main contributor for growth is rural.(shakti is one of the initiative, for more website.)

9. Crisis management (product default and Filed suits ) ?

A: Complaints attended on priority at the highest level thru outsource(BPO). Login no.provided on every pack. Consumer complaints tackled on priority with whatever action required for consumer satisfaction.

10. Though a wide Variety of media is used, which is Preferred media or concentration on which is more and why? Also specify the recruitment process for PR department

A: Television media(highest spending) local excitements acc. to need eg. BRU in south India, skin products in north India.

11. Government support to the company ?

A: Govt. relies on HUL since its one of the contributors for national growth.







NAME - Mr.Gopinathan.

POST - Brand executive!(Mumbai)

1. About the company HUL (previously known as HLL) ?

A: · Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life.

· Its an 75 years History of FMCG.




Over 100 years' link with India


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.

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 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.








3. About the PR activities

A: Every branch has its own activities,,,dey work accordingly

4. How does pr works with internal departmental, HUL being a big company ?

A: Strong R and D team, stringent measure, vigorous testing before launching, few testing with customers, its own expenditure...sales channel then can be rectified and controlled no instant problems.

5. Why was the name changed from HLL to HUL ?

A: Its is different n different countries...eg in srilanka it wil b cald co.uniliver srilanka...in india its hul....it was always uniliver...

Unilever Ltd its an UK based company which plan to develop their Indian operation from Multinational national company to Globalize company.

6. How dose HUL position it self in consumer minds ?

A: Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life.

· 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.

· We actively engage our consumers and customers, translating their needs and requirements into our products and services, thus creating consumer value wherever we position our products. This is at the very heart of our innovation process.

7. Employ relations and work culture?


A: Very systematic...every branch has its own map, full time work with R and D head, separate brand manager, they will decide, conduct interviews and surveys


8. Employee engagement programs (motivational) ?

A: Yes such programmes are carried out often to motivate the employees to come up with good ideas on improving the quality and fulfilling the desires of the people


9. Competitive strategies (to keep itself ahead as market leader) ?

A: Not much competition...communication line is open...consumer feed back promotions...how to tell them, awareness! make them try the new products.

Each brand has its own map,its nt planed in short span...they use swot analysis...and as the company .is 100 yrs old they already know the strengths...so theirs not much competition

10. Consumer relations and communication ?

A: Its a professional system based company. Very strong team which includes...marketing, finance , PR etc .. ther is a good leadership team...

11. Some light on the Shakti programme ?

A: SHAKTI - Changing Lives in Rural India

*Shakti is HUL's rural initiative, which targets small villages with population of less than 2000 people or less. It seeks to empower underprivileged rural women by providing income-generating opportunities, health and hygiene education through the Shakti Vani programme, and creating access to relevant information through the iShakti community portal.

*Shakti is a pioneering effort in creating livelihoods for rural women, organised in Self-Help Groups (SHGs), and improving living standards in rural India. Shakti provides critically needed additional income to these women and their families, by equipping and training them to become an extended arm of the company's operation.

*Started in 2001, Shakti has already been extended to about 80,000 villages in 15 states - Andhra Pradesh, Karnataka, Tamilnadu, Maharashtra, Gujarat, Madhya Pradesh, Chattisgarh, Uttar Pradesh, Rajasthan, Punjab, Haryana, West Bengal, Orissa, Bihar & Jharkhand. The respective state governments and several NGOs are actively involved in the initiative.

*Shakti already has about 25,000 women entrepreneurs in its fold. A typical Shakti entrepreneur earns a sustainable income of about Rs.700 -Rs.1,000 per month,

*HUL's vision for Shakti is to scale it up across the country, covering 100,000 villages and touching the lives of 100 million rural consumers by 2005.

12. Crisis management (product default and Filed suits ) ?(some light on the fair and lovely issue

A: ooty incident were the company .was blamed 4 spreading pollutant...and came under the chemical act...so the co. gave a statement on what is exactly happening...and all such perceptions are wrong and that the company .is not spreading pollutants

13. Though a wide Variety of media is used, which is Preferred media or

concentration on which is more and why?

A: TV


14. PR funds allotted by the company?

A: Depends...each branch has its own work plan ,,promotion accounted separately ,no specific budget, they have certain guidelines...they follow that




15. Do u relate the product to the celebrity?

A: Yes its really imp..as it make sa difference in da mindset of the ppl...