PROJECT REPORT

ON

EXPLORATION OF MULTINATIONAL CORPORATIONS

IN F.M.C.G. SECTOR.

Submitted to M D University Rohtak in partial fulfillment of the requirements

For the award of Degree of master of business administration

2008-09

Submitted by:

Pooja Madaan.
M.B.A, 4th Semester
Roll no. 302/MBA/2007

P.D.M COLLEGE OF ENGINEERING, BAHADURGARH,

AFFILIATED TO
 MAHARSHI DAYANAND UNIVERSITY, ROHTAK.

DECLARATION

I Pooja Madaan, roll no 302/MBA/07, class M.B.A 4th semester of the P.D.M College
of Engineering, here by declare that the Project entitled Exploration of Multinational
corporations in F.M.C.G sector is an original work and the same has not been submitted
to any other institute for the award of any other institute for the award of any other
degree. The interim report was presented to the supervisor on______________ and the
pre-submission presentation was made on ___________ the feasible suggestion have
been duly incorporated in consultation with the supervisor.

Countersigned Signature of the candidate

Signature of the supervisor

Forwarded by Director/Principal of the institute

 ACKNOWLEDGEMENT

Inspiration and hard work always played a key role in the success of any venture. At the

level of practice, it is often difficult to get knowledge without guidance.” Project is like

bridge between theoretical and practical.” With this willing I joined this project.

Objective of the project is to expose the student in the real and practical field of the

business world. For the completion of the project necessary help and support has been

taken from different people therefore I wish to convey thanks to all of them.

There is always a sense of gratitude which one expresses to other for the helpful and

needy services that render during all phases of life. I would like to do so as I readily wish

to express my gratitude towards all those who have been helpful to me in getting this

mighty task to a successful end. It often happens that one is at loss of words when one is

really thankful and sincerely wants to express one’s feeling of gratitude towards other.

I am deeply indebted to Ms. Ashima Rathee (Department of Management) for their

valuable contribution during the academic session & guidance in preparation of this

project report. Finally, it is the efforts of my parents and esteemed friends and the

almighty GOD who have been a source of strength and confidence for me in this

endeavor.

Pooja Madaan
M.B.A 2ndyear
 PREFACE

M.B.A. is stepping stone to Management career. In order to achieve practical positive and

concrete results the theoretical knowledge must be supplemented with exposure to real

environment. Management ideas without any action based on them mean nothing. That is

why practical experience is vital for any management students. Theoretical studies in the

classroom are not sufficient to understand the functioning climate and the real problems

are coming in the way of management. So, practical exposures are indispensable to such

courses. Thus practical experience work as a supplement to the classroom studies. It

offers an exposure to the real practical world of management in various organizations. It

exposes invaluable treasures of expenses to a student. This report deals with the

application of theory to know about the attitude of consumer towards various Laundry,

Beauty, and Hair care, Health Care FMCG Products Of Hindustan Unilever Limited and

Procter & Gamble Hygiene and Health Care Limited. I have learnt a lot of new things

which could never be learnt from theory classes. In forthcoming pages, an attempt has

been made to present a comprehensive report concerning different aspects of my project

report, the overall knowledge gained by me will reflect in this report itself. Theoretical

knowledge without practical knowledge is of little value. Theoretical studies in the

classroom are not sufficient to understand the functioning of marketing concepts.

Therefore, it becomes necessary to undergo any project work. Practical projects

supplements the theoretical studies i.e. it covers what is left uncovered in the classroom.

It exposes a student to invaluable treasure of experiences. Accomplishment and

 achievement of goals is the major aim of any organization. These goals are achieved by

proper planning.

TABLE OF CONTENTS

CONTENTS PAGE NUMBERS

List of Tables
List of Figures

1. INDUSTRY PROFILE
2. REVIEW OF LITERATURE
3. THE COMPANY
4. DATA ANALYSIS & PRESENTATION
4.1 Presentations and Analysis
4.2 Interpretation
5. CONCLUSIONS & RECOMMENDATIONS

6. BIBLIOGRAPHY

7. APPENDICES
Appendix A
Appendix B
EXPLORATION OF MULTINATIONAL CORPORATIONS

IN F.M.C.G SECTOR

The Indian FMCG sector is the fourth largest in the economy and has a market size of
US$13.1 billion. Well-established distribution networks, as well as intense competition
between the organized and unorganized segments are the characteristics of this sector.
M.N.C’s are successful in F.M.C.G. sector like HUL, P & G, nestle etc. FMCG in India
has a strong and competitive MNC presence across the entire value chain.

In case of FMCG sector, where local responsiveness is most important attribute which a
company should possess, M.N.C’s are in a better position to develop this competency as
compared to Indian family businesses. Main reason is the over centralization of decision
making power in the hands of patriarch in case of Indian family businesses. M.N.C’s
operating in various countries develop a natural tendency to adopt to local conditions in
order to succeed since taste of people for consumer non durable goods vary due to
cultural, geographical and economic reasons. Experience gained by M.N.C’s in other
countries can be effectively used to succeed in Indian conditions where diversity is very
high.

Multinational corporation like nestle is the good example in F.M.C.G. sector which is
more popular and having many successful brands.

Nestlé's relationship with India started in 1912. It started its trading with India as The
Nestlé Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling
finished products in the Indian market.
Nestlé India is amongst India's 'Most Respected Companies'
Nestlé India is a subsidiary of Nestlé S.A. of Switzerland. Nestlé India is a company that
provides Indian Consumers products with global standards and is committed to constant
growth and shareholder satisfaction.

Nestlé India has also provided opportunities of growth and employment to about 1
million people including farmers, suppliers of packaging materials, services and other
goods. In this study all the aspects regarding F.M.C.G sector, its growth, supply chain,
future aspects, advertisement programs, SWOT analysis are undertaken.

FAST MOVING CONSUMER GOODS (FMCG):-

Products which have a quick turnover, and relatively low cost are known as
Fast Moving Consumer Goods (FMCG). FMCG products are those that get
replaced within a year. Examples of FMCG generally include a wide range of
frequently purchased consumer products such as toiletries, soap, cosmetics,
tooth cleaning products, shaving products and detergents, as well as other
non-durables such as glassware, bulbs, batteries, paper products, and plastic
goods. FMCG may also include pharmaceuticals, consumer electronics,
packaged food products, soft drinks, tissue paper, and chocolate bars.

Subsets of FMCG are Fast Moving Consumer Electronics which include

innovative electronic products such as mobile phones, MP3 players, digital
cameras, GPS Systems and Laptops. These are replaced more frequently
than other electronic products.

White goods in FMCG refer to household electronic items such as

Refrigerators, T.Vs, Music Systems, etc.
In 2005, the Rs. 48,000-crore FMCG segment was one of the fast growing
industries in India. According to the AC Nielsen India study, the industry
grew 5.3% in value between 2004 and 2005.

INDIAN FMCG SECTOR:-

The Indian FMCG sector is the fourth largest in the economy and has a
market size of US$13.1 billion. Well-established distribution networks, as
well as intense competition between the organized and unorganized
segments are the characteristics of this sector. FMCG in India has a strong
and competitive MNC presence across the entire value chain. It has been
predicted that the FMCG market will reach to US$ 33.4 billion in 2015 from
US $ billion 11.6 in 2003.

The middle class and the rural segments of the Indian population are the
most promising market for FMCG, and give brand makers the opportunity to
convert them to branded products. Most of the product categories like
jams, toothpaste, skin care, shampoos, etc, in India, have low per capita
consumption as well as low penetration level, but the potential for growth is
huge.

The Indian Economy is surging ahead by leaps and bounds, keeping pace
with rapid urbanization, increased literacy levels, and rising per capita
income.

The big firms are growing bigger and small-time companies are catching up as well. According
to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by MNCs, and the
balance by Indian companies. Fifteen companies own these 62 brands, and 27 of these are
owned by Hindustan Lever.
Pepsi is at number three followed by Thums Up. Britannia takes the fifth place, followed by
Colgate (6), Nirma (7), Coca-Cola (8) and Parle (9). These are figures the soft drink and
cigarette companies have always shied away from revealing. Personal care, cigarettes, and soft
drinks are the three biggest categories in FMCG. Between them, they account for 35 of the top
100 brands

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 labor 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 capita 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.

Automatic investment approval (including foreign technology agreements

within specified norms), up to 100 per cent foreign equity or 100 per cent
for NRI and Overseas Corporate Bodies (OCBs) investment, is allowed for
most of the food processing sector.
WE regularly talk about things like butter, potato chips, toothpastes, razors,
household care products, packaged food and beverages, etc. But do we
know under which category these things come? They are called FMCGs.
FMCG is an acronym for Fast Moving Consumer Goods, which refer to things that we
buy from local supermarkets on daily basis, the things that have high
turnover and are relatively cheaper.

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;

PROMOTION MIX ACTIVITIES OF M.N.C’S IN F.M.C.G SECTOR

 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. Rising income levels i.e. increase in purchasing power of consumers
3. Large domestic market- a population of over one billion.
4. Export potential
5. 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

SCOPE OF F.M.C.G. SECTOR:-

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,
says an HSBC report. Though the sector witnessed a slower growth in 2002-2004, it has been
able to make a fine recovery since then.
GROWTH PROSPECTUS OF MULTINATIONAL CORPORATIONS IN
F.M.C.G SECTOR:-

With the presence of 12.2% 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.

NEW MARKETING STRATEGIES OF MULTINATIONAL

CORPORATIONS IN F.M.C.G SECTOR

HINDUSTAN UNILEVER LIMITED

the fast moving consumer goods major, Unilever Group has decided
to step up its cost cutting drive at the global level where it will
concentrate more on protecting the cash flows.

Speaking with the media persons here on Friday, Paul Polman,

Unilever’s CEO said that the company has appointed a Global
Procurement Officer to handle this task. A common global procurement platform has also
been drawn to meet the requirements of the FMCG major across the globe.
Apart from this, the company has also made it clear that it would cut its travel
expenditure by 30 per cent and make more use of video conferencing. Moreover, the
company has also decided to hire its employees on a selective basis.

“I am a realistic optimist. We have not yet seen the bottom of the recession and I think
recessionary trends will continue for the next 24 months or more. I hope I am wrong, but
it is better to be prepared. ” said Polman.

Polman feels that there is great upside to develop itself in India. He expects to see bigger
and better innovations from the developing and emerging markets like India, which could
then be moved across the world. He cited the instance of Pureit, the water purifier brand
from HUL, which could be imitated in other markets to make it a bigger global brand.

At present, Polman is on a two-day visit in India.

In October 2008, Polman took over as a CEO of Unilever. Earlier he was working as the
Chief Financial Officer at Nestle S.A.

While the fixed component of employees’ salary has been frozen, the MNC is more
liberal on the variable side. However, later an official working for the Hindustan Unilever
made it clear that there would be no salary freeze in India. He also said that there was no
freeze on recruitments too. The consumer goods major would continue to recruit from B-
Schools in line with business needs.

DABUR INDIA
 Decline in input cost prices and strong performance by hair and
skin care category helped Dabur India Ltd to show good results in
the third quarter of current financial year. The firm posted a rise of
16.1% in net profit for Q3 ended December 31, 2008 despite low
customer spending and tight financial conditions.

Sunil Duggal, Chief Executive, Dabur India said, "Even in the current economic scenario,
demand for our everyday use products continue to be strong and we have not seen any
significant impact on consumer spending." He hoped that the firm would continue to
expand its business in next financial year despite global slowdown.

Dabur India posted 19.4 per cent rise in sales which stands at Rs 786.21 crore as
compared to Rs 658.61crore in the same period last year. The firm reported strong growth
in GCC and North African markets, recording 48.2% growth in the international business.
Good response by the hair care and the baby and skin care category helped it to post net
profit of Rs 107.4 crore during the reporting quarter.

Meanwhile, the firm has announced an Interim Dividend of 75% for the current financial
year. Anand Burman, Chairman of Dabur India Ltd said, "With a firm focus on internal
efficiencies and our key growth drivers, we have been able to achieve impressive growth
this quarter. Continuing with our payout policy, Dabur India has approved an Interim
Dividend of 75% for the year, aggregating to a payout of Rs 64.88 crore."

CADBURY INDIA

Cadbury India, has announced the launch of its dark chocolates--

Cadbury Bournville Fine Dark Chocolate--in the Indian market.
The dark chocolate, which is loved by millions of consumers because of its rich taste and
intrinsic health and well-being benefits, would be available in four different variants--
Rich Cocoa (80g), Almond, Hazelnut and Raisin & Nut (90g).

The chocolates will be priced at Rs 75.

During the launch ceremony, the company revealed that it intends to start a campaign for
Bournville Fine Dark Chocolate in November, which entails national advertising on
television, print and sampling. .

The company expects an increase of around 15-20% in its revenue during the festive
season.

NESTLE INDIA PVT.LTD.

Swiss FMCG firm Nestle has announced its plans to invest Rs

600 crore in its Indian subsidiary in calendar year 2009, as part
of its business strategy.

The company which has granted an investment of Rs 300 crore

in the Indian market this year, would be doubling the
investment in 2009, on the back of strong growth it witnessed
in India during 2007.

According to the company, the investment would go in new research and development,
advertising and capacity expansion at its factories.
Nestle proposes to ride through the recession through a combination of high-margin and
value-added products, for which it has outlined out-of-home expansion and health and
wellness as big growth areas.

In India, Nestle will mainly focus on - nutrition and wellness, inclusion of consumer,
branded beverages and super premium and luxury products.

Nestle's sales in India increased by 25% in the first half of 2008 with the country
contributing 1.5% of its global turnover.

Nestle is expecting a billion new consumers in next 10 years, for its products which range
from coffee, dairy to processed food and confectionary.

Nestle, which had yesterday reaffirmed that all its milk products in China and Hong Kong
are absolutely safe and the company expects the recent China milk scandal to positively
impact its business as its products have been cleared by Chinese authorities.

F.M.C.G (FAST MOVING CONSUMER GOODS) SECTOR- STOCK

INVESTMENT:-

The FMCG sector in India is one of the biggest in the world and growing at a scorching
pace. In times of a global slowdown and recession (in some countries) the FMCG sector
provides one of the best investment opportunities in India. This is one of the sectors
which will be relatively less hit by the global economic slowdown. So good stock
selection in this sector can give good returns even in bad times for the overall economy.
The Indian FMCG sector stocks have so far shown a lot of resiliance in the recent stock
market meltdown. Most of the FMCG sector stocks have outperformed the Sensex this
year and some stocks still have positive one year returns. So its a sector worth looking at
and also considering some exposure to in these bad times.

The table below shows ten FMCG companies in India and their one year stock market
performance along with their PE ratio and beta. The Indian FMCG sector stocks have a
very low beta value which in itself indicates low volatility in these stocks. The study of
these 10 stocks would also suggest how some have generate positive returns in this
market meltdown. Please click on chart to see enlarged image.
 Some stocks in the FMCG sector are trading at relatively high PE and can be avoided for
now. They do need to come down somewhat to be in par with the overall market
valuations.

Also while selecting a stock in the FMCG one need to look into several important
factors such as:

 The kind of rural penetration the company products have. The higher the better.
 If most of the products of the company are high end face or bodycare products.
These product companies can be avoided for now and companies with more basic day
to day use products should be considered. Look at what is a necessity and avoid
companies whose products might be more of a luxury.

 Comparison of the intersegment PE and also the PE of the company vs. its growth
rate. So if a company has a PE of 20 but is growing at greater then 20% easily then its
fine.
Another positive for most of these FMCG sector stocks is that they are debt free

companies. This is always good and specially good in these times of volatile interest rate

enviornment.
For investors eyeing the FMCG space, large domestic companies offer attractive growth

prospects. These companies are outperforming their MNC peers and small Indian

companies in the sector. But MNC's generally have a better profit margin then the local

players.

Another stock which I have missed in the list of ten companies in the chart above is

Nestle India Ltd. This is also a good company but trading at a relatively higher PE of 30.

Tis stock is worth looking at if the stock prices do correct in the near future.

While there is no doubt that consumer spending in India will also be hit in the wake of

this slowdown it will not be as high as the effect this slowdown will have on some other

sectors. So if one really wants to invest in the stocks markets now he/she would be

relatively better off investing in these FMCG companies then any other industry.

RESEARCH PROBLEM
There are various problems available regarding choosing this project, but I select some

rational problems which can be useful for any kind of study regarding the F.M.C.G

sector.

 What is fast moving consumer goods?

 What type of products provided by the F.M.C.G. companies?

 To find the impact of customer preference regarding the brands of F.M.C.G

companies.

 To analyze the company’s pricing as well as advertising strategy.

 To do the comparative analysis of brands of HUL and P& G hygiene and health

care limited.

 To analyse the presence of multinational corporations in F.M.C.G sector

OBJECTIVES
 OBJECTIVES OF STUDY

 To check the growth of F.M.C.G. Companies.

 To study the supply chain of F.M.C.G Companies.
 To make the comparison between marketing strategy of two F.M.C.G. Companies.
 To know about future aspects of F.M.C.G Companies.
 RESEARCH
METHODOLOGY
 RESEARCH METHODOLOGY

Research simply means, “Search for

knowledge”.
According to Roman and More,
Research is “systematized effort to
gain new knowledge”.

RESEARCH METHODOLOGY: - is a way to systematically solve the research

problem. In it, step-by-step methods are followed to solve a particular problem. It may be
understood as a science of studying how research is done systematically. It refers to
search for knowledge. In fact research is an art of scientific investigation. Achieving
accuracy in any research require in depth study regarding the subject. As the prime
objective of the project is to find out the marketing strategies which are used by F.M.C.G
companies for attracting the people especially for customers in the market. Research in
common parlance refers to a search for knowledge. Research is an academic activity and
as such the term should be used in a technical sense. Research comprises defining and
redefining problems, formulating hypothesis or suggested solution; collecting, organizing
and evaluating data; making deductions and reaching conclusions; and at last carefully
testing the conclusions to determine whether they fit the formulating hypothesis. The
study deals with understanding the international market area of F.M.C.G. sector and the
subsequent initiatives carried out by 2 companies in the FMCG sector, namely, HUL &
Proctor & Gamble Hygiene and health care limited.

RESEARCH DESIGN

Research Design is the way in which the research

is carried out. It works as a blue print.

“A Research Design is the arrangement of conditions for collection and analysis of data
in a manner that aims to combine relevance to the research purpose with economy in
procedure.” Research design is the blue print to study any problem. It is plan for
collection, analysis and interpretation of data in a manner that is relevant to the research
purpose with economy in the procedure.” Exploratory” is used for carrying out this
research.

Types of Research Design:

Research design can be classified into following types:-

 Descriptive & Diagnosis research design

 Exploratory research design
 Experimental research design
 Analytical research design
Exploratory: In it the problem is formulated for precise investigation and working
hypothesis is developed.

Descriptive & Diagnosis: In Descriptive Research Design, those studies are taken
which are concerned with describing the characteristics of particular individual or a
group. In Diagnostic, those frequencies are determined with which something occurs or
its association with something else.

Experimental: In it casual relationships between variables are tested. It is also known

as Hypothesis Testing Research Design.

Analytical: In this, researcher has to use facts or information already available and
analyses these to make a critical evaluation of the material.
In this project I have used descriptive research design because it describes new ideas
and events. It is flexible and can be easily modified in future.

SAMPLE DESIGN

It is not possible for any researcher to include each and every member of the universe in
his research process. So, he selects small portion of the universe, which is its true
representative. This group is known as Sample and this process is called Sampling.
Sampling Techniques are of two types:
Non-Probability Sampling
Probability Sampling

I. Probability Sampling: It is also known as “Random Sampling” or “Chance

Sampling”. In it, each population element has equal chance of selection.

It can be of following types:-

Simple Random Sampling
Stratified Sampling
Cluster Sampling

II. Non-Probability Sampling:

In it, sample deliberately by researcher, by using his own judgement. In this, every item
of universe does not have equal chance of inclusion in the sample.
It can be of following types:-
Convenience Sampling
Judgement Sampling
Quota Sampling
 DATA COLLECTION

The success of research depends up to some extent upon the method of data collection
used. The relevant care should be taken that the errors in methods of collection of data
involvement come to affect the reliability of data collected.
It includes both:

Primary Data
Secondary Data

PRIMARY DATA:

Primary sources of data used for this project are:

Questionnaire method
Observation method

SECONDARY DATA:

Secondary data was obtained from the Websites, journals & study of other relevant
Magazines of the F.M.C.G companies

UNIVERSE & SURVEY POPULATIONS

Sample will be selected from the customers using F.M.C.G. products in Rohtak.

RESEARCH DESIGN OF THIS PROJECT

Sampling unit : Customers

Type of research : Exploratory
Sample size : 50 Respondent
Sampling media : Questionnaire
Sampling technique : Non-Probability Sampling
: (Convenient sampling)
Sample Area : Rohtak
Research Instrument : Questionnaire, Literature, Articles
Analysis pattern : Tables, Pie Charts & Diagrams
Content pattern : Questionnaire Analysis
SIGNIFICANCE
OF
STUDY
 SIGNIFICANCE OF STUDY

Today era is era of competitiveness. Competitors are increasing day by day in F.M.C.G
sector. Multinational corporations are usually successful in F.M.C.G sector It becomes
very difficult to retain the existing customers and to join new one it is necessary to do
SWOT Analysis of each business activity. SWOT means strength, weakness, opportunity
and threats in market. This study is a type of swot analysis. In this study I have tried to
find out the M.N.C’s of F.M.C.G products, their brands and the customer preferences
regarding these brands. It helps a manager to analysis his company present market
condition and to check whether the customers are satisfied with their Branded products or
not. It helps also to get a overview about customer perception. It helps to find out the
points or services which satisfies or dissatisfaction the customers. Managers can take the
help of this study to know the preferences of customers. What are those services which
liked by the customers the most? Why the customers are choosing the particular brand of
F.M.C.G products. The study suggests the way to enhance the sales of a company by
providing the various ways to attract the customers.
 HYPOTHESIS

1. M.N.C’s are successful in F.M.C.G sector.

2. HUL moves on dumping strategy for the international coverage.
3. P & G hygiene and health care limited moves on value pricing strategy for the
international coverage.
4. HUL Company is more popular than P & G hygiene and health care limited.
 STRUCTURE OF THE STUDY

It is very important for a researcher to make the structure before starting a research, as it

determines the boundaries with in which researcher has to work. As the study is related to

F.M.C.G. sector so, the structure of the study revolves around the F.M.C.G companies

who offer F.M.C.G products, features in this sequence:-

 To study the perception and awareness of customers towards brands of HUL and P

& G.

 Studying benefits and shortcomings of F.M.C.G. companies.

 Collecting primary data through Questionnaire and secondary data through the

websites, journals, magazines etc.

 To analysis the data through Analytical tools such as pie charts and bar diagrams.

 To find out the customer preferences regarding F.M.C.G products of multinational

corporations like HUL and P & G. and its impact on today scenario.
 REVIEW
OF
LITERATURE
 REVIEW OF LITERATURE

F.M.C.G sector move on dumping strategy for the purpose of international coverage

Dumping, generally means sell of goods to another country at less than cost of
production, but technically dumping is not selling of goods at loss but it is a
strategy in which a corporation sells its goods at cheaper prices in a foreign market
than the home country i.e. where goods are produced. Basically dumping is
discrimination between prices of home and foreign market. FMCG i.e. fast moving
consumer goods e.g. ready made clothes, toys, cutlery items, electronic goods etc.

Usually dumping of goods is successful in FMCG rather than heavy machinery or other
goods. Reason behind dumping is basically that American and EU. MNC’s started
establishing their manufacturing units into South East Asian countries when WTO
agreement and GATT (General Agreement on Tariffs and Trade) is fully signed
(commenced from 2000-01) by the most of the South East Asian countries.

The one of the main aspect of Dumping is that the corporation must exploit all of its
Fixed Cost from the Domestic market and every subsequent commodity, which is
produced at variable cost, should only be sold to the foreign market. Since, MNCs
started selling their goods at higher costs in the domestic market to cover the fixed
costs and set cheaper prices for the western market.
"Since the time that we last visited the dump on January 25, they (HLL) have cleared it,"
says Raja Mohan, a PHCC activist. "They are obviously trying to hide what evidence
they can of waste dumping."

Mr. Subramanian, marketing manager (exports) for Hindustan Lever, however,

denies these reports, and nervously refuses to look at the pictures of the now-cleared
forest dumpsite. "I'm sorry. I'm not authorized to speak. Nobody is authorized to speak
today."

Procter & Gamble’s Value Pricing Strategy in F.M.C.G. Sector

Author(s):

Malcolm H.B. McDonald, Leslie de Chernatony, Fiona Harris

Journal: European Journal of Marketing

Year: 2001

Volume: 35

Issue: 3/4

Page: 335 - 352

ISSN: 0309-0566

Much research has focused on how consumers and competitors respond to short-term
changes in advertising and promotion. In contrast, the authors use Procter & Gamble’s
(P&G’s) value pricing strategy as an opportunity to study consumer and competitor
response to a major, sustained change in marketing-mix strategy. They compile data
across 24 categories in which P&G has a significant market share, covering the period
from 1990 to 1996, during which P&G instituted major cuts in deals and coupons and
substantial increases in advertising.

The authors estimate an econometric model to trace how consumers and competitors
react to such changes. For the average brand, the authors find that deals and coupons
increase market penetration and surprisingly have little impact on customer retention as
measured by share-of-category requirements and category usage. For the average brand,
advertising works primarily by increasing penetration, but its effect is weaker than that of
promotion.

The authors find that competitor response is related to how strongly the competitor’s
market share is affected by the change in marketing mix and the competitor’s own
response and to structural factors such as market share position and multi market contact.
The net impact of these consumer and competitor responses is a decrease in market share
for the company that institutes sustained decreases in promotion coupled with increases
in advertising

P&G's New Innovation Model According to the Larry Huston and Nabil
Sakkab

Procter & Gamble has operated one of the greatest research and development operations
in corporate history. But as the company grew to a $70 billion enterprise, the global
innovation model it devised in the 1980s was not up to the task. CEO A. G. Lafley
decided to broaden the horizon by looking at external sources for innovation. P&G's new
strategy, connect and develop, uses technology and networks to seek out new ideas for
future products. "Connect and develop will become the dominant innovation model in the
twenty-first century," according to the authors, both P&G executives. "For most
companies, the alternative invent-it-ourselves model is a sure path to diminishing
returns."

FMCG SECTOR OPTS FOR ONE-TWO PUNCH OF HARDWARE AND ERP

Hardware continues to account for the biggest portion of the average FMCG major’s IT
budget. ERP is a hot favourite with nine out of ten respondents planning investments to
extend or upgrade their ERP systems. Chirasrota Jena reports

A strong MNC presence in the FMCG (Fast Moving Consumer Goods) sector, the
existence of a wide distribution network, intense competition, the availability of key raw
materials, lower labour costs, and a presence across the entire value chain have resulted
in a thriving market for FMCG companies. The sector will grow by over 50 percent in
rural and semi-urban India by 2010. With the opening up of the Indian market to foreign
players, Indian companies have increased their use of IT as a business tool. Indeed, it has
become an essential element for these companies to understand the needs of their
customers and handle their employees.

Many FMCG companies need to consolidate their information base that’s been
accumulated from different sources. As these companies have operations spread across
India, the major problem they are facing is data integration. In order to bring efficiency to
their processes, they are deploying different IT solutions to keep online information about
their manufacturing plants, distribution points, distributors and retailers. After identifying
the need for integration, companies are deploying software to increase operational
efficiency. IT solutions expose weak links in the value chain, increase departmental inter-
action, improve processes, and speed-up decision-making.
A Rajendran, Director, Information Services, Team Computers says, “FMCG companies
generate large amounts of data, and the need for data analytics is very high in this sector
with an extremely high level of flexibility of analysis.”

Agrees Anupam Sharma, Director, Business Consulting

SSA Global India: “The Indian ERP market, serving discrete and process industries, is
growing robustly.” Various analyst firms have indicated that the size of the ERP software
and services market is more than $85 million, and growing at a CAGR of approximately
25 percent. Some of the factors that are contributing to this growth are competitive
pressure, contract manufacturing, and the growth of emerging industries such as food,
FMCG and beverages. Consolidating retail markets and fewer opportunities for growth
are just some of the trends compelling organisations to change and optimise business
processes, not just in functional areas but across the entire enterprise. A reliable world-
class solutions provider is one who not only understands the business and competitive
environment but also its impact on information requirements. While companies are
looking at ERP solutions that are quick to implement and are affordable, they have also
started evaluating the solutions on another parameter—the total cost of ownership. Long
implementation cycles and complex customisation procedures raise the cost of ERP
ownership, so it is important for ERP software and service providers to design products
that can be quickly implemented and easily customised.
COMPANY
 PROFILE

AN OVERVIEW OF HINDUSTAN UNILEVER LIMITED

The Hindustan Unilever Research Center (HLRC) was established in 1958, and now has
facilities in Mumbai & Bangalore. HLRC has 200 highly qualified scientists and technologists,
many of them with post-doctoral experience. HLL also runs various ambitious programmes like
Shakti. Shakti's aim is to create opportunities for rural women thereby improving their livelihood
and standard of living in rural sector. Shakti also includes health and hygiene education through
the Shakti Vani Programme. The programme covers about 50,000 villages in 12 states. HLL's
motive is to take this programme to 100,000 villages influencing the lives of over a 100 million
rural Indians. HLL is also involved in running a rural health programme - Lifebuoy Swasthya
Chetana. The programme aims to inculcate the hygienic practices among rural Indians to bring
down the figure of diarrhea patients. It has already covered 70 million people in approximately
15000 villages of 8 states.

Years1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Sales 7120,06 8342,75 10215,24 10917,69 11392,14 11781,30 10951,61
11096,02 11975,53
10888,38

Profit After
412,70 580,25 580,25 1069,94 1310,09 1540,95 1731,321804,34 1354,51
1199,28
Taxation
Hindustan Lever Ltd (HLL) is India's largest Fast Moving Consumer Goods (FMCG) company.
HLL's brands like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic,
Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall's are
household names across the country and span a host of categories, such as soaps, detergents,
personal products, tea, coffee, branded staples, ice cream and culinary products. These products
are manufactured over 40 factories across India and the associated operations involve over 2,000
suppliers and associates. Hindustan Lever Limited's distribution network comprises about 4,000
redistribution stockists, covering 6.3 million retail outlets reaching the entire urban population,
and about 250 million rural consumers. HLL is also one of India's largest exporters. It has been
recognised as a Golden Super Star Trading House by the Government of India.

In the late 19th and early 20th century Unilever used to export its products to India. This process
began in 1888 with the export of Sunlight soap, which was followed by Lifebuoy in 1895 and
other famous brands like Pears, Lux and Vim soon after. 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). The three companies were merged in
November 1956 and the new entity that came into existence after merger was called as Hindustan
Lever Limited. HLL offered 10% of its equity to the Indian public, and it was the first among the
foreign subsidiaries to do so. Currently, Unilever holds 51.55% equity in the company while the
rest of the shareholding is distributed among about 380,000 individual shareholders
Brooke Bond entered Indian market in 1900 and in 1903 it launched Red Label tea in the
country. In 1912, Brooke Bond & Co. India Limited was formed. Unilever acquired Brooke
Bond through an international acquisition. Similarly, Lipton's link with India date back to 1898.
Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited was incorporated.
Pond's (India) had been in Indian market since 1947.

The liberalization of Indian economy in 1991 and subsequent removal of the regulatory
framework allowed HLL to explore every single product and opportunity segment, without any
constraints on production capacity. The 1990s witnessed a string of crucial mergers, acquisitions
 and alliances. 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. In one of the most talked about
events of India's corporate history, the erstwhile Tata Oil Mills Company (TOMCO) merged with
HLL, effective from April 1, 1993. In July 1993, Brooke Bond India and Lipton India merged to
form Brooke Bond Lipton India Limited (BBLIL). Brooke Bond Lipton India Limited launched
Wall's range of Frozen Desserts in 1994 and by the end of the year, HLL entered into a strategic
alliance with the Kwality Icecream Group families. BBLIL merged with HLL, with effect from
January 1, 1996. HLL has also set up a subsidiary in Nepal, Nepal Lever Limited (NLL). The
NLL factory manufactures HLL's products like Soaps, Detergents and Personal Products both for
the domestic market and exports to India. In January 2000, as part of its divestment strategy, the
government decided to award 74 per cent equity in Modern Foods to HLL. In 2002, HLL
acquired the government's remaining stake in Modern Foods. In February 2007, the company has
been renamed to "Hindustan Unilever Limited" to strike the optimum balance between
maintaining the heritage of the Company and the future benefits and synergies of global
alignment with the corporate name of "Unilever".

SOME OF HLL BRANDS ARE:

Kwality Walls Ice Cream, ,Hamam, Lifebuoy, Rexona, Lux, Liril, Moti Soaps, ,Breeze Lipton Tea,
Brooke Bond, Tea ,Bru Coffee, Pepsodent, Close Up ,Surf ,Rin, Wheel Laundry Detergent, Kissan
,Annapurna, Pond's, Vaseline, Fair & Lovely, Lakmé, Clinic Plus, Clinic All Clear, Sunsilk and Lux
Shampoos, Vim , Ala Bleach, Domex, Pureit Water Purifier.

Hindustan Unilever Limited Financial and Strategic Analysis

Hindustan Unilever Limited (HUL) formally known as Hindustan Lever Limited is one of the largest
fast moving consumer goods company in India. The company, a subsidiary of Unilever, sells Foods
and Home and Personal Care brands in about 100 countries worldwide. The company is engaged in the
production and distribution of soaps and detergents, personal products, beverages, foods, ice creams,
exports and others products such as chemicals and agri products. The major brands of the company are
Lux, Hamam, lifebuoy, Dove, RIN, Surf, Wheel, Sunlight, Vim, Fair & Lovely, Clinic Plus, Sun Silk,
 Global Markets Direct, the leading business information provider, presents an in-depth business,
strategic and financial analysis of Hindustan Unilever Limited. The report provides a comprehensive
insight into the company, including business structure and operations, executive biographies and key
competitors.

SUPPLY CHAIN MANAGEMENT

Hindustan Unilever Limited (abbreviated to HUL), formerly Hindustan Lever Limited, is India's
largest consumer products company and was formed in 1933 as Lever Brothers India Limited.
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company,
touching the lives of two out of three Indians with over 20 distinct categories in
Home & Personal Care Products, and Foods & Beverages. They endow the company with a scale of
combined volumes of about 4 million tones and sales of nearly Rs.13718 crores.
The mission that inspires HUL's over 15,000 employees, including over 1,300 managers, is to "add
vitality to life." HUL meets everyday needs for nutrition, hygiene, and personal care with brands that
help people feel good, look good and get more out of life. It is a mission HUL shares with its parent
company, Unilever, which holds 52.10% of the equity. HUL's brands - like Lifebuoy, Lux, Surf Excel,
Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond,
Kissan, Knorr-Annapurna, Kwality Wall's † are household names across the country and span many
categories - soaps, detergents, personal products, tea, coffee, branded...
SCOPE:-

 The company’s strengths and weaknesses and areas of development or decline are analyzed.
 The opportunities open to the company are considered and its growth potential assessed.
Competitive
 The report contains critical company information – business structure and operations, the
company history, major products and services, key competitors, key employees and
executive biographies,
 It provides detailed financial ratios for the past five years as well as interim ratios for the last
four quarters.
 Financial ratios include profitability, margins and returns, liquidity and leverage, financial
position
HINDUSTAN UNILEVER LTD'S KISSAN LAUNCHES AMAZE
BRAINFOOD FOR CHILDREN CHILDREN SAY 'HAND'S UP'
TO A BRIGHT FUTURE.

Hindustan Unilever Limited (HUL) has launched Amaze Brain food under the Kissan
brand. Each serving of Amaze Brain food is specifically designed to give children 33% of
the required dosage of nutrients for mental development daily, based on international
dietary recommendations for school going children. Amaze, now available in all leading
retail outlets across Tamil Nadu, Karnataka and Andhra Pradesh is currently available in
three different formats- Bars (33gm), Bites (30gm) and Smart Mix (150 gm & 400gm) in
various exciting flavours. Amaze is all set to become a healthy and easy choice and it not
only delivers key brain nutrients on a wholesome base, it is also delicious and available in
formats readily acceptable by the children.

Amaze is a product that has come after 4 years of research and development at Unilever’s
Research Centre (HLRC). The product has been designed in a manner that important
nutrients are made available and easily taken up by the body. Amaze is a wholesome
nutritional product and 100% vegetarian. It also provides other nutrients needed for the
healthy development of a child such as Protein, omega 3 and 6 fatty acids, Vitamin A,
Vitamin C and Calcium. In addition, sugar, salt and saturated fats are kept to a minimum
as these are undesirable in excessive quantities, as identified by the FAO/WHO.

According to Siddhartha Singh, Category Head, Hindustan Unilever Limited, "It is vital
to give children a good start in life and good nutrition is key for developing their brain
and body to its full potential. Increased urbanization, changing diets and lifestyles have
lead to imbalanced diets and high intake of empty calories. Amaze provides a nutritious
option to the mothers who find it difficult to feed their children with nutrient rich foods
children need for proper growth and development. It would easily fit into the normal
meal moments of a child and is a wholesome alternative to unhealthy snacks which
children tend to get attracted to."

Nutrition plays a very important role and has a long lasting effect on mental development.
The key micro-nutrients which are essential for mental development are-Iron, iodine,
zinc, vitamin B2, B6, B12 and Folate. These have a positive impact on the structure and
functioning of the brain. Good nutrition is essential for the brain development of every
child and FOOD is the main source of these brain nutrients as the body cannot make them
on its own.

Director, Nutrition and Health, Hindustan Unilever Limited, Asia Swati Gupte
commented, "For optimal mental development, there are several important requirements;
stimulating environment, good education, parental care and a nutritious diet. Mothers
know what needs to be done to sharpen their children’s minds, when it comes to
extracurricular activities, like playing chess and scrabble or attending special tuitions and
camps. When it comes to food, they are unsure and always looking for advice and might
miss out on the importance of feeding their children’s’ brain with the right kind of foods/
right nutrition. Amaze Brain food has a great appealing taste and a promise of nutrition
that makes it trustworthy for mothers to fill the nutrient intaken gap by providing the
child with important nutrients which especially support mental development.

Combining nutrition and health in a product is not good enough, children should also
love the products and AMAZE fulfils this requirement. It is a tasty and delicious brain
food for children.

Hindustan Unilever Limited (HUL) is India’s largest Fast Moving Consumer Goods
Company, touching the lives of two out of three Indians. HUL’s mission is to "add vitality
to life" through its presence in over 20 distinct categories in Home & Personal Care
Products and Foods & Beverages. The company meets everyday needs for nutrition,
hygiene, and personal care, with brands that help people feel good, look good and get
more out of life.

Kissan is a 50 year plus brand and is today one of the most trusted food brands in the
country for mothers & children. Kissan makes deliciously wholesome products for kids
to grow up to. It is a pioneer & market leader in all the categories that it operates in,
namely Jams, Ketchup & Squash.
 AN OVERVIEW OF PROCTOR AND GAMBLE (PG)

Procter & Gamble (PG) is one of the largest consumer goods manufacturers in the world, providing
goods from household toiletries to food and batteries. You might recognize some of their most popular
brands such as Crest, Tide and Pringles.

Given the current state of the equity markets, an investment in the Consumer Staples sector is
something that any investor can/should have in order to limit their risk and volatility with this market.
With a consumer recession likely within the next few months, most people will not be buying their
high-end gadgets and gizmos. But I can guarantee you consumers will still buy their household goods
because I’m sure they will still want clean clothes and clean teeth regardless of the state of the
economy

Fundamental Drivers

There are many things that separate Procter & Gamble from other household product manufacturing
companies.

 Brand Recognition
 Focus on Higher Growth Segments
 Target Pricing strategy
 Diversified Consumer Exposure
 Consistent dividend and earnings growth

Target Pricing Strategy

One thing that I found interesting about Procter is related to its pricing strategy. While most firms will
create a product, look at the costs it incurred during production and then include a certain percentage
of markup to arrive at its final price, PG does the exact opposite. When in product development one of
the first things they will do is determine the demand and an appropriate price for the product before
setting it into production. Unless they can produce it below this “target price” then they will not
produce the product or they will revise their thought process. This saves them from unnecessary
capital expenditures, but this also proves to be a great tool for the consumer. They produce goods that
they know the consumer can afford. Keeping the consumer first in it’s pricing strategy is a key element
of their success. This type of attitude along all lines of their business is what makes it such a huge
global player today and shows why it will continue to perform extremely well in the future.

Diversified Consumer Exposure

A quick look at Procter & Gamble’s consumer base shows that over 50% of their sales come from
international markets. In a growing global economy this is extremely important, especially since over
20% of their sales come from emerging markets. This also acts as defense, in case one market suffers a
downturn, the bottom line of PG is not hurt too significantly. They currently operate in over 180
different countries and I believe this will continue to grow as part of their growth strategies, which will
be very beneficial to the long term stability of this company.
The Future aspects of Procter & Gamble:-

Interactive Quarterly has an interesting interview with Denis Beausejour, vice president of advertising
at Procter & Gamble, one of the first big consumer products companies to embrace interactive and
Internet marketing.

Among other things, he says that P&G is beginning to look more to a direct response model in its
relationships with agencies, rather than click throughs and hits.

Beausejour said he thinks that there will be "two kinds of agencies 10 years from now: digital agencies
and dinosaur agencies. In other words, I see all these convergences that we're talking about and not
just in what the consumer sees but in how the ads are made and how the consumer research is done
behind the ads...being profoundly influenced by these technologies."

Beausejour said that P&G will host a conference called the Future of Advertising Stakeholders
Summit, (FAST) at its Cincinnati headquarters on August 20-21. With representatives from
advertisers, online publishers, agencies and technology companies, the summit will allow all of the
voices concerned with the future of Web advertising to state their views.

He added that topics will range from a specific discussion of online advertising models to the ways in
which changes in technology are redefining advertising, advertising agencies, P&G and the very idea
of what it means to be a brand.

"I think the [ad] model we want to have is driven around a combination of fee and [brand] sales
incentives, so that the agencies can front up with us and have exactly the same goals and not be
trapped by the media compensation system, which forces them to focus [on budgets]," he said.

"We believe that having some component of sales volume [as a factor in compensation] will make the
motives identical. I'm saying, without having the final plan ready, where I want to go is with
compensation on sales."
 DATA
ANALYSIS
 DATA ANALYSIS

To identify the effectiveness of customer’s preferences the questionnaire was prepared

(given in appendix). The response of the customers against the questionnaire and the
analysis thereof is as follows:-

Q.1 Customer’s awareness regarding brands of Hindustan unilever limited.

Awareness of HUL’s brands Percentage of total people Interviewed

Yes
96%
No
4%

INTERPRETATION:-
Most of the people (96%) are aware of brands of Hindustan
unilever limited.
Q.2. Customer’s awareness regarding brands of proctor & gamble hygiene and health
Care limited.

Awareness of P&G’s brands Percentage of total people Interviewed

Yes 64%

No 36%

INTERPRETATION
Mostly people (64%) are aware of P&G hugiene and health care
limited.

Q.3. customer’s preferences regarding brands of hair care products.

Brands of hair care products Percentage of total people Interviewed

Sunsilk 32%

Pantene 26%

Clinic plus 12%

Head & shoulder 22%

Rejoice 0%

Other 8%

INTERPRETATION
Mostly people like “Sunsilk” (hair care product) 26% people
prefer “Pantene”, 12% people prefer “clinic plus”, 22% “Head & shoulders” and 8%
other. Demand of rejoice is neutral according to survey.

Q.4. Customer’s preferences regarding Brands of beauty products.

Brands of Beauty products Percentage of total people Interviewed

Fair& lovely 38%

Olay 2%

Ponds 10%

Lakme 36%

Other 14%

INTERPRETATION
Mostly people like “fair& lovely” (beauty product), 2% people
like “Olay”, 10% people like “ponds”, 36% “Lakme” and 14% others.

Q.5 customer’s preferences regarding brands of laundry products.

Brands of Laundry products Percentage of total people Interviewed

Surf excel 60%

Tide 26%

Rin 4%

Ariel 10%

Others 0%

INTERPRETATION
Mostly people like “Surf-excel” (laundry product) 26% people
prefer Tide,4% people prefer Rin and 10% people prefer Ariel.
Q.6. Customer’s preferences regarding brands of inter dental products.

Brands of inter dental products Percentage of total people interviewed

Oral-b 20%

Close up 38%

Pepsodent 26%

Other 16%

INTERPRETATION
Most of people like “close-up” (inter dental product) 20% people
like “oral-b”, 26% people like “Pepsodent” and 16% other.
Q.7. Customer’s preferences regarding brands of Health care/personal care products.

Brands of health care/personal care Percentage of total people interviewed

products

Breeze 4%

Hamam 8%

Lifebuoy 20%

Ivory 0%

Camay 4%

Lux 32%

Pears 22%

other 10%

INTERPRETATION
There is keen competition in hair care /personal products. Mostly
people like “Lux” 20% people like “lifebuoy”. 22% people prefer “Pears”. 8%
Hamam, 4% “Camay”. “Ivory” the brand of P&G is not properly demanded and
known.
Q.8 Customer’s preferences regarding features of F.M.C.G products.

Features of F.M.C.G products Percentage of total people interviewed

Price 4%

Quality 50%

Both 46%

INTERPRETATION
Most of people prefer quality in F.M.C.G. products. People are
not more price intensive for purchasing of F.M.C.G products.
Q.9. Customer’s preferences regarding shopping.

Type of shopping Percentage of total people Interviewed

Home shopping 24%

Retail shopping 76%

INTERPRETATION
Mostly people like retail shopping for F.M.C.G. Products.
Because retail shopping is more convenient and satisfactory than home shopping.
Q.10. Customer’s preferences regarding promotion mix activities.

promotion mix activities. Percentage of total people interviewed

Advertisement 68%

Sales promotion 8%

Personal selling 6%

publicity 18%

INTERPRETATION
Mostly people are affected by “Advertisement” only 18% people
are affected by “Publicity” 8% people are affected by “Sales Promotion” and 6%
“personal selling”.
Q.11. Customer’s preferences regarding sales promotional activity.

Sales promotional activities. Percentage of total people interviewed

Free coupons 22%

Discount/rebates 30%

Prizes/gifts 44%

Others 4%

INTERPRETATION
Mostly people prefer “Prizes/gifts” as sales promotional activity
and 30% people prefer “Discount/rebates” 22% people prefer “free coupons”, and 4%
others.
Q.12. Customer’s time period regarding purchasing of F.M.C.G. products.

Time period of purchasing Percentage of total people interviewed

Daily 12%

Weekly 70%

Monthly 18%

Yearly 0%

INTERPRETATION
Mostly people purchase weekly F.M.C.G. products. 12% people
purchase daily and 18% people purchase monthly. People are not interested to purchase
F.M.C.G products yearly.
Q.13. Best company of F.M.C.G. products between two.

F.M.C.G. companies Percentage of total people Interviewed

Hindustan unilever limited 78%

Proctor & Gamble hygiene and health care

limited. 20%

INTERPRETATION
Hindustan unilever limited is better company because it launched
less price and qualified products in market.
FINDINGS
 FINDINGS

1. F.M.C.G sector in India has strong M.N.C’s presence.

2. Customers are more aware of brands of Hindustan unilever limited than
proctor & gamble hygiene and health care limited
3. HUL Company of F.M.C.G products is more popular than P& G because
of brands of HUL availability in all stores and at discounted prices with
various schemes.
4. “Proctor and Gamble hygiene and health care limited” (P&G) moves on
“Value pricing strategy” for International coverage.
5. “Hindustan unilever limited” (HUL) moves on “Dumping Strategy” for
International coverage.
6. Mostly customers believe in retail shopping rather than home shopping.
They are not satisfied with the home delivery products.
7. Customers are usually purchase the F.M.C.G products weekly and
monthly.
8. Proctor & Gamble hygiene and health care limited is weak in promotion
mix activities like advertisement.
9. Customers are not price intensive. They prefer quality more than price for
F.M.C.G products.
10. Growth of Hindustan unilever limited is greater than P & G because of
high sales, best delivery system, less priced and qualified products.
CONCLUSIONS
 CONCLUSION

FMCG sector in India has a strong and competitive MNC presence across the entire value
chain. M.N.C’s are successful in F.M.C.G. sector like HUL, P & G, nestle etc. Nestlé
India is a company that provides Indian Consumers products with global standards and is
committed to constant growth and shareholder satisfaction. M.N.C’s are in a better
position to develop this competency as compared to Indian family businesses. M.N.C’s
operating in various countries develop a natural tendency to adopt to local conditions in
order to succeed since taste of people for consumer non durable goods. HUL is better
than P& G for the hygiene care products. At last we conclude that exploration of
Multinational Corporation in F.M.C.G. sector is beneficial for Indian market.
RECOMMENDATIONS
 RECOMMENDATINS

1. Hindustan unilever limited and Proctor & Gamble hygiene and health
Care limited should emphasis on product line extension.
2. Proctor & Gamble hygiene and health care limited should emphasis on
Promotion mix activity like advertisement for the awareness of the
Particular brands.
3. P & G should reduces prices of its product and maintain the quality.
4 HUL should enhances the quality of the product for the high satisfaction
Of the customers.
5. F.M.C.G. companies should use C.R.M. programs for the customer
Loyalty.
6. F.M.C.G. companies should have proper supply chain management.
7. P & G should emphasis on sales promotional activities like gifts, prizes,
free coupons, discounts and rebates.
8. F.M.C.G. companies should maintain the marketing strategies for proper
marketing coverage domestic as well as international.
LIMITATIONS
 LIMITATIONS OF THE STUDY

Primary data has also been used in this study. There could be the margin for errors due to

the use of the data. In every research there are chances of errors and constraints. I found

following errors in my study

 Because of shortage of time and so many other constraints it is possible that some

respects might have been left untouched.

 Most of the data collected in the report is from secondary sources so the

authenticity of data is not guaranteed.

 Due to the limited time the findings of the research can’t be generalized.

 Data collected could not be appropriate, as sometimes respondents did not

respond seriously.

 Sample size is very small as I have taken only 100 respondents.

 Respondents may give biased responses.

BIBLIOGRAPHY
 BIBLIOGRAPHY

BOOKS:-

 Kothari, C.R. Research Methodology, (methods & techniques), Vikas

publishing house Pvt. Ltd, New Delhi.

 Kotler, Philip; Marketing management, Dorling Kindersley India

pvt. Ltd, Delhi, 12th addition, 2007.

 Mahadevan B; Operations and supply chain management (theory

and practices) Dorling Kindersley India pvt. Ltd, 2007.

WEB SITES VISITED:-

www.google.com
www.wikipedia.com
www.hul.com
www.proctor&gamble.com
JOURNALS:-
Journal of marketing practice: Applied marketing science.
Journal of Marketing Standardization.
Journal of International Marketing.
Journal of Strategic Marketing.
Journal of Consumer Marketing.

APPENDICES
 QUESTIONNAIRE

(I Pooja madaan, roll no 302, student of M.B.A Final year, P.D.M. college of engineering,
Bahadurgarh doing a project on the topic” Exploration of Multinational corporations in
F.M.C.G sector” I ensure and affirmu not to disclose this information elsewhere for any
other purpose other than the study)

Personal detail:-

Name: -------------------------------------------------------------

Age: -------------------------------------------------------
Sex: -------------------------------------------------------------------

Occupation: -------------------------------------------------------

Contact No. -----------------------------------------------------

Q.1. Are you aware of brands of Hindustan unilever limited?

Yes No

Q.2. Are you aware of brands of Proctor & Gamble?

Yes No

Q.3. Which brand of hair care product do you like most?

a) Sunsilk
b) Pantene
c) Clinic plus
d) Head & shoulder
e) Rejoice

Any other please specify ------------------------------------------

Q.4. Which brand of beauty product do you like most?

a) Fair & lovely

 b) Olay
c) Ponds
d) Lakme

Any other please specify ------------------------------------------

Q.5. Which brand of laundry products do you like most?

a) Surf excel
b) Tide
c) Rin
d) Ariel
Any other please specify ------------------------------------------

Q.6. Which brand of inter dental products do you like most?

a) Oral-b
b) Close up
c) Pepsodent

Any other please specify ------------------------------------------

Q.7. Which brand of health care/ personal care products do you like most?

a) Breeze
b) Hamam
 c) Lifebuoy
d) Ivory
e) Camay
f) Lux
h) Pears

Any other please specify ------------------------------------------

Q.8. What feature of F.M.C.G products do you prefer most?

a) Price
b) Quality

Q.9. What type of shopping do you prefer most?

a) Home shopping
b) Retail shopping

Q.10. Which type of promotion mix activity do you prefer?

a) Advertisement
b) Sales Promotion
c) Personal selling

Q.11. What type of sales promotion activity do you prefer most?

 a) Free coupons
b) Discount/Rebates
c) Prizes/Gifts

Q.12. How oftenly you purchase the F.M.C.G products?

a) Daily
b) Weekly
C) Monthly
d) Yearly

Q.13. Which company of F.M.C.G products is better most?

Hindustan unilever limited Proctor & gamble

Q.14. If HUL, then give suggestions-------------------------------------------------------------

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Q.15 If Proctor & gamble, then give suggestions-----------------------------------------------

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