Download Comparative Study of Distribution Systems: HUL and ITC in Rural Markets and more Thesis Marketing in PDF only on Docsity!
A
RESEARCH PROJECT REPORT
ON
“A COMPARATIVE STUDY ON DISTRIBUTION
SYSTEM OF HUL AND ITC IN RURAL MARKETS”
A Project submitted in partial fulfilment of the requirement for a
degree of
MASTER OF BUSINESS ADMINISTRATION
Batch (2023-2025)
SUBMITTED TO: SUBMITTED BY:
MR. BRIJESH KUMAR ANMOL TYAGI
MBA IV
TH
SEM
ROLL NO. 2367002015
IIMT UNIVERSITY
‘O’ POCKET, GANGA NAGAR COLONY,
MAWANA ROAD, MEERUT (U.P), INDIA
STUDENT DECLARATION
The Research work embodied in this project entitled “ A
COMPARTIVE STUDY ON DISTRIBUTION SYSTEM OF
HUL AND ITC IN RURAL MARKETS” has been carried out at
the “ SCHOOL OF COMMERCE & MANAGEMENT, IIMT
UNIVERSITY, MEERUT, U.P. The extent of information
derived from the existing literature has been indicated in the body
of the project at appropriate places along with the source of
information. The work is original and has not been submitted in
part or for nay degree or diploma of this or any other University.
Date:
Name: ANMOL TYAGI
ROLL NO: 2367002015
Place: MEERUT
ACKNOWLEDGEMENT
I am greatly thankful to Dr. Vineet Kaushik, (Dean) school of
Commerce & management IIMT University, Meerut, U.P. India
for providing necessary infrastructure to carry out my project work
at the university. I am express my sincere thanks and gratitude to
Dr. Pooja Sharma (HOD) School of commerce and management
IIMT University, Meerut, U.P. India for her moral support
valuable guidance and encouragement during the various stages of
my work.
I am feeling oblige in taking the opportunity to sincerely thanks to
Mr. Brijesh Kumar (Associate Professor) School of commerce
and management IIMT University, Meerut, U.P. India for his
valuable guidance, valuable advice and whole heartedly co-
operation. His sincerity, thoroughness, timely help, and
constructive criticism has been a constant source of inspiration for
me.
I would like to acknowledge my parents and friends for the whole
hearted moral support and unending encouragement they provided
me during my project work.
Date: ANMOL TYAGI
Place: Meerut ROLL NO: 2367002015
TABLE OF CONTENTS
- Executive Summery S.No. Particulars Pg No
- Objectives Of The Study
- Introduction Of The Project 08-
- Company Profile 12-
- Research Methodology 67-
- Data Analysis and Interpretation. 71-
- Findings 76-
- Limitations Of the Study 78-
- Conclusion & Suggestions 80-
- Bibliography
OBJECTIVE OF THE STUDY
To study the different food product of both the company. To find out the distribution strategy of HUL and ITC. To find out the demand and supply relation in HUL and ITC. To Know the Comparative position of HUL in comparison to ITC. To study the satisfaction level of users.
INTRODUCTION
NEED OF THE STUDY
Distribution is all about getting the product/services to the right people at right time. How the distribution channel is working in FMCG sector. In FMCG sector work of distribution channel is not an easy job. How major players like HUL and ITC maintain good supply of its product/services to its different channel. It is very much required to make available of the product to its final consumers. Sound distribution channel help any organization to grow very fast .Factory is the place where any product is manufactured, but without help of a good distribution channel it is useless to produce. To understand bathing soap and shampoo industry, classification listing of companies with their brands, & SKU’s, margin calculation offers. Top brands, retail/WD buying pattern & stocking, Supply chain, Order capture-Delivery model, types of outlets-convenience & Grocery, Key accounts, Visibility solutions of different companies. Distribution-activities that make products available to customers when and where they need them. A channel of distribution or marketing channel is a group of individuals and organizations that directs the flow of products from producers and customers.
SCOPE OF THE STUDY
Hindustan Unilever Limited (HUL) and Imperial Tobacco Co.(ITC) is India's largest fast moving consumer goods company, with leadership in Home & Personal Care Products and Foods & Beverages. HUL's brands, spread across 20 distinct consumer categories, touch the lives of two out of three Indians. FMCG is the fourth largest sector in the Indian Economy with a total market size of Rs. 60,000 crore. FMCG sector generates 5% of total factory employment in the country and is creating employment for three million people, especially in small towns and rural India. With the help of my study company may be able to know in which area they are lacking behind to give tough competition to Hindustan Unilever Limited in the segment of Food Products.
HUL (HINDUSTAN UNILEVER)
Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods (FMCG) Company. It is present in Home & Personal Care and Foods & Beverages categories. HUL has about 15,000 employees, including over 1400 managers The fundamental principle determining the organization structure is to infuse speed and flexibility in decision-making and implementation, with empowered managers across the company’s nationwide operations.
Our mission
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.
Enthused with Vitality
Products," Vitality has been at the heart of our business HINDUSTAN Unilever (HUL) is the largest pure-play FMCG Company in the country and has one of the widest portfolio of products sold via a strong distribution channel. It owns and markets some of the most popular brands in the country across various categories, including soaps, detergents, shampoos, tea and face creams. PERFORMANCE: After stagnating between 1999 and ’04, the company is back on the growth track. In the past three years, HUL’s net sales have witnessed a CAGR of 11%, while net profit has posted a CAGR of 17%. The company is set to gain further momentum, given the revival of consumer spending. HUL sells products at different price points straddled between the entire value chains. In the past few years, it has diversified into processed foods, ice- creams, water purifiers and specialized chemicals. But home and personal care (HPC) continues to remain the bread & butter segment for the company. This division accounted for 72% of HUL’s revenue and 91% of its profit (before interest and tax) during the year ended December ’07. So, it won’t be wrong to call HUL a personal care major.
GROWTH DRIVERS:
The Company has been launching new products and brand extensions, with investments being made towards brand-building and increasing its market share. HUL is also streamlining its various business operations, in line with the ‘One Unilever’ philosophy adopted by the Unilever group worldwide. Introduction of premium products and addition of new consumers via market expansion will be HUL’s growth drivers. FINANCIALS: HUL’s net sales have recorded a CAGR of more than 11% over the past three years, while its net profit has posted a CAGR of 17% during the same period. While its sales have maintained a secular growth trend, profit margins have shown an erratic trend during the period. High dividend yield, steady growth and strong market standing in its product categories have enabled HUL to command premium valuations, compared to other FMCG companies. RISKS: Being an MNC operating in India, HUL is more conservative in its strategies than its Indian counterparts. Moreover, given increasing competition, it faces the risk of being overtaken by domestic players in various categories. Prolonged inflation may lead to margin contraction, in case HUL is not able to pass on this burden to consumers. The company’s large size also poses a problem, since it does not give HUL the agility to address the competition it faces from national and regional players. TO SUM IT UP: HUL’s up-and-running business model is a treat for investors seeking exposure in the FMCG segment. The company has delivered in the past and has the potential to do better
in future. In the small and medium term, HUL is a better bet than ITC.
HUL FOOD PRODUCTS…………
HUL is one of India’s leading food companies. Our passion for understanding what people want and need from their food - and what they love about it - makes our brands a popular choice
Red Label
The brew that bonds. The taste of Red Label brings alive the little moments that bring us closer to people we love. It is the simple act of sharing a cup of Red Label that often adds magic to everyday moments, strengthening the relationships that matter most to us. Life is lived in those moments, one sip at a time.
Key facts
Red Label is a 105 year old brand and has tremendous equity and heritage in the Indian market. It is the second largest tea brand in the country. It has both leaf and dust variants, as well as a health and immunity variant - Red Label Natural Care. It is now proven that regular consumption of 3 cups of Red Label Natural Care every day can enhance one's immunity and help one fall ill less often. Red Label holds the Guinness Record for the worlds largest tea party.
From our range
Red Label Red Label Natural Care
Taaza
The great refreshment of Taaza inspires women to have an identity beyond their homes and to refresh their lives. Many young women in emerging India live life bound within their roles as a mother, wife and daughter in law. In the process, they lose their own identity. However, a changing India and examples of women achievers as portrayed by media, is leading to an awakening of her desire to carve out an identity for herself. She is however limited by her own inhibitions and a sense of inertia. Taaza recognizes this latent need and also believes that every woman has innate talent. The fresh green leaves in Taaza give her amazing refreshment that inspires her to realize her talent. Taaza is her ally and confidant.
Key facts
Taaza is a 20 year old brand with strong presence in North & West India. It is the 3rd largest tea brand in the country with a portfolio spanning in both leaf and dust segments. It has a strong presence in the out of home segment in South India.
From our range
Taaza Taaza Thanda
Taj Mahal
A taste for the finer things in life. Crafted from carefully selected tender leaves from India’s finest tea gardens, the lingering aroma of Taj Mahal always has an impact. When a cup of Taj is served, compliments follow. Taj Mahal is not just a cup of tea, it is a sensory experience.
Key facts
Taj Mahal was launched in 1966 by Brooke Bond. Ustad Zakir Hussain, the tabla maestro was the brands ambassador for almost two decades, exemplifying both discernment as well as the pursuit of excellence. Taj Mahal since 2007 has Saif Ali Khan as its ambassador, a relevant choce for today’s Indian Taj Mahal is the most premium brand of tea in the Indian market. It was the first brand to launch tea bags and is the only tea brand in India to be sold in vacuum sealed packs.
From our range
Taj Mahal Taj Mahal Tea B Taj Mahal Flavored Tea Bags
Kissan
Kissan acts as a catalyst, easing stressful moments at the dining table. With Kissan, good food is loved not shoved! Kissan wants to be the brand which will help dissolve tension between mother and the family during informal good food moments. Kissan acts as a catalyst, easing stressful moments at the dining table. With Kissan, good food is loved not shoved!
Key facts
Kissan is in its 62nd^ year of its existence in India. Category leaders in Jams with an All India Share of 65%. Kissan Jam Kissan Juice Kissan Tomato Ketchup Kissan Tomato Ketchup Kissan Jam Squeeze Green Apple Kissan Jam Squeeze Mango Kissan Jam Squeeze Pineapple Kissan Jam Squeeze Strawberry
Kissan Amaze Brain food
Good nutrition is the key for developing children’s’ brains and bodies to their full potential. Kissan Amaze Brain food helps moms contribute to their kid’s brighter future by helping their mental development. Kissan Amaze Brain food is a range of nutritious products specifically designed to provide 33% of key brain nutrients children need daily for mental development. Amaze fits in a healthy diet and has a nutritional composition in line with international recommended dietary intakes for balanced nutrition for school children. The “bad nutrients” like sugars, salt, trans fat and saturated fat are kept as low as possible and adequate quantities of all the key nutrients which support the development of the brain (like Iodine, Zinc and Omega 3 fatty Acids and B Vitamins), in particular are added. The
products are also available in formats which would easily fit into the normal meal moments of a child and could replace the unhealthy snacks.
Key facts
Specifically designed for the mental development of children Provides 33% of key brain nutrients. Available in Smart Mix & Brainy Bites. Available in the state of Tamil Nadu, Andhra Pradesh & Karnataka.
From our range
Smart Mix in Chocolate & Vanilla Flavors Brainy Bars in Chocolate Flavor
Knorr
Knorr helps families make meal times special, nutritious, tasty and healthy. It is not wrong to say that the category of soups was launched by Knorr in India. The Knorr range of soups is available in a number of tasty and exciting varieties. There is a flavour to literally suit every taste palate; the Classic range of soups with flavors like Thick Tomato, Mixed Vegetable and Chicken Delite, the Oriental range with flavours like Sweet Corn Vegetable, Sweet Corn Chicken and Hot n Sour and the Snacky range (pasta /noodles in soup) with innovative flavours like Masala Twisty Pasta soup and Thai Curry Noodle soup. This year has also seen the addition of the Indian soup range with lip smacking flavours inspired by Indian cuisine; these include soups like Tomato Chatpata, Corn Mast Masala, Veg Hara Bhara, etc. Whether it is giving the Indian consumer a choice of 17 delicious varieties of soups or helping her make restaurant like Chinese food at home Knorr has always been at the forefront in taking the lead and in partnering with the Indian housewife. The Knorr portfolio has now expanded with yet another launch; the launch of the Indian Ready to Cook range. Knorr Indian Ready to Cook helps the consumer make her family's favourite dishes at home and helps her get restaurant like taste at home itself.
