CHAPTER 5

VARIOUS ASPECTS OF MARKETING IN HUL

Relationship marketing begins and ends with customers needs hul play a important

role to build up a money market in global economical network . relationships with

Indian customers; they would include all the relationships which business required,

it manage both internal and external, in order for it to remain competitive meet its

customer’s needs effectively. they watch customer behaviour and loyalty on the

eye of competitors. they perform according there needs economically and environ-

mentally there research and development program follow the Indian rules.

The global technologically advantage use by the Indian customer in present Net-

work of hul. The geographically and demographically segmentation not interfere in

maintaining effective relationships. Today, environmental issues are very much in

the news, thanks to stories about global warming, the threatened extinction of wild

life, and Indian increasing population and pollution in the modern atmosphere. Hul

make so many policy at the social level and develop the awareness by his program

some of them are attempting to address these issues by , for instance, encouraging

customers to reuse bags, or labeling packaging that can be recycled.

242
 5.1 STUDY OF CONSUMER BEHAVIOR IN HUL

In the “new family, children encounter decision-making at an earlier age and

caretaking on greater rolls and responsibilities in family purchases. Recent

research indicates that children ’ s influence extends far beyond what

Untraditionally thought to inlay include area where children were primary product

users. Children have been found to have strong influence on non-traditional areas

such as home décor, automobiles, and home electronics (e.g., Meyers, 2004 and

Roy, 2004 ). In a nickelodeon study, nine out of ten parents said their children’s

brand preferences for technical products carried significant weight in the decision,

with 30% indicating that children’s opinions were given “major importance”

(miller, 1999). Further, parents in the nickelodeon study acknowledge deferring

to children in areas where the children were considered to be more knowledgeable

than their parents, such as sports and beverages. Other research reports that

children ’ s influence on parental spending has increased 54% since 1997 (hunter,

2002 ) , with children influencing 80% of family food spending. Finally, cooper

(1999) reports that in 43% of their purchases, parents requested input from their

(1999) children. Another indication of change in the family is that children

are increasingly being socialized by agents external to the family. The percentage

of children living in homes where both parents are working has doubled over the

243
past 25 years ( Francisco , 1999 ). With women increasingly entering the work

force, children spend a large portion of their formative years in out-of-

home setting or alone. Children are also faced with an unprecedented

technological environment. For example, 47% of children aged 2-18 have a

television in their bedroom. These children are consuming an average of 5.5

hours a day using media such as television , print , and the computer (Dotson

and hayatt, 2005 ) . In fact , the market pace of technological change and

educational development has left many children more knowledgeable than their

parents (Francisco , 1999). As a result, children not only have greater input, but

their input is being shaped by unmatched access to external socialization agents.

These changes and implications collectively suggest that in today ’ s family ,

children are faced with a different decision – making environment . Social

forces, demographic shifts, and changes in parent’s attitudes have all worked to

increase the child’s status as an active decision-maker. In fact, children may have

increase the child’s status as an active decision-maker. In fact, children may have

more absolute decision- making influence than ever before. (64)

Other changes are occurring in the nature of the home and family that have
(64) FORTUNE JOURNAL OF INTERNATIONAL MANAGEMENT COOPER, J (1999). PARENTS: KIDS KNOW BEST,
MEDIAWEEK 9 (6), P.14.
DOTSON, M. J. AND HAYATT, E.M. (2005). MAJOR INFLUENCE FACTORS IN CHILDREN’ S CONSUMER SOCIALIZATION , J
CONSUM MARK 22 (1), PP. 35-42.
FRANSICO, L (1999) KIDING AROUND, ENTERPRENEUR 27 (9), PP. 160-162.
HUNTER, B .T (2002) MARKETING FOODS TO KIDS : USING FUN TO SELL, consumer research (2002), pp. 16-19)].
MEYERS, T . ( 2004 ) KIDS GAINING VOICE IN HOW HOME LOOKS, ADVERTING AGE 75 (13), p. 54.
MILLER , B . ( 1999) WHO’S KIDDING WHOM? BRAND WEEK 40 (14), PP. 20-22.
ROY , S ( 2004 ). THE LITTLEST CONSUMERS, DISP DES IDEAS 16 (7), PP.18-19.

244
implications for marketers . today we see evidence of increased mobility,

especially among better educated and professional consumers who are prepared to

move to other cities to take higher - paying jobs interestingly, the geographic

mobility of blue -collar workers has decreased in current year young people seem

to be approaching relationship in a more mature manner, generally not marrying

until they are older and more able to cope with marriage’s emotional and financial

demands .The changes that have occurred in term of relationship – increased

sexual freedom ,an increased diverse rate , a reduced birth rate the changing role

of women , dual - carrier families have caused many to comment on the future of

the institution of the family . it involve both spouses working, there by requiring

relationship marketing specialist to modify current approaches to marketing to the

relationship marketing to the family and Market. Hindustan unilever’s Fair and

lovely is the leading skin-lightening cream for women in india. The company was

forced to withdraw television advertisements for the product in 2007.

Advertisements depicted depressed, dark - complexioned women, who had been

ignored by employers and men, suddenly finding new boyfriends and glamorous

careers after the cream had lightened their skin. In 2008 Hindustan unilever made

former miss world priyanka chopra a brand ambassador for pond’s and she then

appeared in a mini - series of television commercials for another skin lightening

product, white beauty, alongside saif ali khan and neha dhupia ; these

245
advertisements were widely criticized for perpetuating racism. In recent year’s

teenagers and young children have become decision makers in family buying as-

well – as actual purchasers. The amount of money teenagers spend now is

substantial enough to be considered in the marketing plans of many company and

manufacturer. Even very young children are an influence in buying decision today

because they watch television and internet programs or shops with their parents

,purchasing decision are often made jointly by family members (some times

even the children are included ).young married people are much more likely to

make buying decision on joint basis than are older couples. Apparently the longer

a husband and wife live together, the more they feel they can trust each other to

act unilaterally. Thereafter it attempts to establish logical relationships between

the special interest areas of TWEENS and their involvement level in the purchase

process for not only products of their use, but also other family products. Also

the impact of various moderating factors like their special interest areas, preferred

leisure activities, working mother’s and family units on the influencing ability (of

tweens) in family decision making, has been analyzed . .(65)

BRAND AND PURCHASING POWER:-

One brand theory developed by HOWARD AND SHETH over a period of time

including a 3 - year validation test. The model is based on the assumptions that

(a) buying is a rational exercise in problem solving and (b) buyer behavior is
(65) SHALINI NATH TRIPATHI, fortune journal of international management. Vol. 5, no.1, January-June 2008.
246
systematic ( not random ). Thus buyer behavior is caused by input (stimuli) and

results in outputs (buying behavior). The theory is an attempt to describe what

occurs between the input and outputs. This is reminiscent of the learning theories

discussed earlier in this research.

The HOWARD-SHETH (h-s) theoretical model is based on the idea that four set

of variables determine buyer behavior:

1 stimulus - input variables from the marketing program and social environment.

2 internal variables that together show the state of the buyer (his or her

motives, attitudes, experiences, perceptions)

3 seven variables that affect the internal state of the buyer (these are called

“exogenous” variables and include social class, culture, time pressure and

financial status)

4 response - output variables (the buyer’s behavior based on interactions of

the first three set of variables ) Thus , one way to approach the cultural

ANALYSIS OF A COUNTRY FOR THE PURPOSE OF MARKING

MARKETING DECISIONS:-

determine relevant motivations in the culture

determine characteristic behavior patterns

determine what broad cultural values are relevant to this product

determine characteristic forms of decision making

247
 evaluate promotion methods appropriate to the culture

determine appropriate institutions for this product in the minds of

consumers (66)

STEP CHART OF CONSUMER BEHAVIOR

BUYER
------------
PSYCHOLOGICAL
-------------------------
1 MOTOVATION 2 PERCEPTION 3 LEARNING

4 BELIEFS & ATITUDES

PERSONAL
---------------
1 AGE AND LIFECYCLE STAGE 2 OCCUPATION

3 ECONOMIC SITUATION

4 LIFESTYLE 5 PERSONALITY AND SELF- CONCEPT

SOCIAL
-----------

1 REFERENCE GROUPS 2 FAMILY 3 ROLES

AND STATUS

CALTURAL
---------------
1 CULTURE 2 SUBCULTURE

3 SOCIAL CLASS (67)

( 66) Source: JAMES F. ENGEL, ROGE R D. BLACKWELL, AND DAVID T. KOLLAT, CONSMER BEHAVIOR, 3rd ed. (Hinsdale,
Ill.: DERDEN PRESS, 1978), P.90.

(67) SOURCE: PHILIP KOTLER & GARY ARMSTRONG 5th EDITION PP.141.

248
 STEP CHART OF BUSINESS BUYER BEHAVIOR:-

BUYERS
------------
INDIVIDUAL
------------------
1 AGE 2 INCOME 3 EDUCATION 4 JOB 5 POSITION 6 PERSONALY

7 RISK ATTITUDES
INTERPERSONAL
--------------------------
1 AUTHORITY 2 STATUS 3 EMPATHY 4 PERSUASIVENESS

ORGANIZATIONAL
-------------------------------

1 OBJECTIVES 2 POLICIES 3 PROCEDURES

4 ORGANIZATIONAL STRUCTURE 5 SYSTEMS

STEP CHART OF ENVIRONMENTAL CONDITIONS:-

1 ECONOMIC DEVELOPMENTS

2 SUPPLY CONDITIONS

3 TECNOLOGICAL CHANGE

4 POLITICAL & REGULATORY DEVELOPMENTS

5 COMPETITIVE DEVELOPMENTS

6 CULTURE AND CUSTOM (68)

The buying center usually includes many percipients that influence each other, so

inter Personal factors also influence the business buying process in relationship
(68) SOURCE FREDRICK E. WEBSTER, JR., AND YORAM WIND, ORGANIZATIONAL BUYING BEHAVIOR ( UPPER SADDLE
RIVER, NJ: PRINTICE HALL, 1972), PP. 33-37.
249
Marketing. Participants may influence the buying decision because they control

rewards and punishments, are well liked, have special expertise, or have a special

relationship with other important participants. (69)

(69) PHILIP KOTLER & GARY ARMSTRONG 5th EDITION PP. 167.

250
 5.2 GREEN MARKETING PROGRAMMES OF HUL

NEWLY emerging environmentalism movement made its first large-scale effort to

educate people about the dangers of pollution .this was a though task: at the time,

most Folks were not all that interested in environmental problems. These days,

however, Environmentalism has broad public support. People hear and read daily

about a growing List of environmental problems - global warming, acid rain,

depletion of the ozone layer , air and water pollution, hazardous waste disposal, the

buildup of solid wastes-and they Are calling for solutions. Today’s marketers must

also take responsibility for the social and environmental impact of their actions.

Corporate ethics has become a hot topic in almost every business arena, from the

corporate boardroom to the business school classroom. And few companies can

ignore the renewed and very demanding environmental movement. The ethics and

environmental movements will place even stricter demands on companies in the

future. Consider recent environmental developments. In June 1992, representatives

from more than 100 countries attended the earth summit in RIO DE JANEIRO to

warming, endangered species, and other environmental threats .(70)

Consider how to handle problems such as the destruction of rain forests, global

The new environmentalism has caused many consumers to rethink what products

they Buy and from whom. Many consumers are now willing to pay a premium to
(70) SEE WILLIAM S. STAVROPOULOS, “ENVIRONMETALISM, S THIRD WAVE,” EXECUTIVE SPEECHES,
AUGUST/SEPTEMBER 1996, PP. 28-30; AND STUART L. HART, “BEYOND GREENING: STRATEGIES FOR A SUSTAINABLE
WORLD,” HAVARD BUSINESS REWIEW, JANUARY-FEBURARY 1997, PP.67-67.
251
support truly environmentally friendly products and companies. Such consumer

attitudes have sparked Major marketing thrust- green marketing- the movement by

companies to develop and Market environmentally responsible products.

Committed ‘green companies pursue not only environmental clean up but also

pollution prevention . true ‘green “ work requires Companies to practice the three

of waste management reducing, reusing and recycling Waste. (71)

RELATIONSHIP MARKETING AND ENVIRIONMENTAL

PROGRAMS:-

Producers in a wide range of industries are responding to environmental concerns.

For example, 5 m runs a pollution prevention plays program; witch has led to sub-

stantial pollution and cost reduction. Under names such as ‘eco-series’ renaissance

and ‘green line. The nation INDIA. It’s even opening ‘eco- friendly’ stores in these

stores, Systems use monotone - depleting refrigerant, rainwater is collected the air

conditioning From parking lots and rooftops for landscaping, skylights supplement
(72)
fluorescent lighting Adjusted by photo sensors, and the road sign is solar powered.

During the early phase of the new environmentalism, promoting environmentally

Improved products and actions ballooned into a big business in fact,

Environmentalists And regulators became concerned that companies were going

overboard with their use of Terms like recyclable, degradable, and compost able.
(71) SEE WILLIAM S. STAVROPOULOS, “ENVIRONMETALISM, S THIRD WAVE,” EXECUTIVE SPEECHES,
AUGUST/SEPTEMBER 1996, PP. 28-30; AND STUART L. HART, “BEYOND GREENING: STRATEGIES FOR A SUSTAINABLE
WORLD,” HAVARD BUSINESS REWIEW, JANUARY-FEBURARY 1997, PP.67-67.
(72 ) SOURCES: QUOTES FROM ROBERT REHAK,” GREEN MARKETING AWASH IN THIRD WAVE,” ADVERTISING AGE,
NOVEMBER 22, 1993,
P.22.
252
Perhaps of equal concern was that , As More and more marketers used green

marketing claims, more and more consumers would view them as little more then

gimmicks .people want to know that companies are incorporating Environmental

(73)
values into their manufacturing processes, products, Packaging and the very fabric

of their corporate cultures. They want to know that Companies will not

compromise the ability of future generations to enjoy the quality of Life that we

enjoy today as a result we’re seeing the marriage of performance benefits and

Environmental benefits one reinforces the other. They believe that environmental

Far sightedness today will pay off tomorrow - for both the customer and the

company. (74)

NATURAL CONDITION OF RELATIONSHIP M,ARKETING:-

The natural environment involves the natural recourse that are needed as inputs

by Marketers or that is affected by marketing activities. Environmental concerns

have grown steadily during the past three decades. Some trend analysis label

the1990s as the “earth Decade.” Claiming that the natural environment is the major

worldwide issue facing Business and the public. In many cities around the world,

air and water pollution have Reached dangerous levels. World concern continues

to mount about the depletion of the Earth’s ozone layer and the resulting

“ greenhouse effect , ” a dangerous warming of the Earth. And many

(73) SEE ERIC WIEFFERING, “WAL-MART TURNS GREEN IN KANSAS,” AMERICAN DEMOGRAPHICS, DECEMBER 1993, P. 23.
(74) “FTC FINALIZES GREEN MARKETING GUIDELINES,” ENVIRONMENTAL MANAGER, JULY 1998, P.2.

253
environmentalist fear that we soon will be buried in our own trash. (75)

(
Marketers should be aware of several trends in the natural environment. The first

involves growing shortages of raw materials. Air and water may seem to be infinite

resources, but some groups see long-run dangers. Air pollution chokes many of the

world’s large cities and water shortages are already a big problem in some parts of

the United States and the world. Renewable resources, such as forests and food,

also have to be used wisely. Nonrenewable resources, such as oil, coal, and various

minerals, pose a serious problem.

RECYCLABLE LABLE OF RELATIONSHIP MARKET:-

A second environmental trend is increased pollution. Industry will almost

always damage the quality of the natural environment. Consider the disposal of

chemical and nuclear wastes ; the dangerous mercury levels in the ocean ; the

quality of chemical pollutants in the soil and food supply; and the littering of the

environment with non - biodegradable bottles , plastics , and other packaging

materials. A third trend is increased government intervention in natural recourse

management. The governments of different countries vary in their concern and

efforts to promote a clean environment. Concern for the natural environment has

spawned the so-called green movement. Today, enlightened companies go beyond

what government regulations dictate. They are developing environmentally

(75) FOR MORE DISCUSSION, SEE THE “ENVIRONMENTALISAM” SECTION. ALSO SEE MICHAEL E. PORTER AND CLAAS
VAN DER LINDE, “GREEN AND COMPETITIVE: ENDING THE STATEMENT,” HARVARD BUSINESS REVIEW, SEPTEMBER-
OCTOBER 1995, PP 120-134.

254
sustainable strategies and practices in an effort to create a world economy that the

planet can support indefinitely. More and more, companies are recognizing the link

between a healthy economy and a healthy ecology. (76)

(76) SEE THE “ENVIRONMENTALISM” SECTION. ALSO SEE MICHAEL E.PORTER AND CLAAS VAN DER LINDE, “green and
competitive: ending the stalemate,” Harvard business review, September-October 1995.pp. 120-134;

255
5.3 MARKET SEGMENTATION AND CONSUMER RESEARCH BY

HUL

Relationship market global segmentation may be defined as a technique of

dividing different countries in to homogeneous groups. The concept of global

relation is based on the fact that a business can not serve the entire world with a

single set of polices because there are disparities among countries- both economic

and cultural. A global marketer , there fore, should pick out one or more countries

as leadership. A new company can not find it feasible to do business immediately

with the entire spectrum of countries forming a segment in that case , it may

design its marketing programs and strategies for those countries it does enter and

draw upon its experience with these countries in dealing with new market.

Hindustan unilever limited has its choice of two general

approaches in one , the whole market is viewed as a single unit as one mass,

aggregate market. This approach leads to the strategy of relationship market

aggregation in the other approach the whole market is seen as being compose of

many smaller, homogeneous segments . this approach leads to the strategy of

relationship market segmentation , in which one or more of these segments

are selected as target markets. The first component may be studied by analyzing

the geographic distribution and demographic composition of the pollution. The

second composition is analyzed through the distribution of customer income and

256
customer expenditure patterns finally to determine customer ’ s willingness to

spend , management must study their buying behavior . this involves the

sociological and psyological factors that influence buying behavior. Hindustan

unileaver limited has own research department . He should make quantities

estimates of the sales –volume size of the market for the seller‘s product or service

this step involves estimating the total industry potential for the company‘s Product

in the relationship market. He should estimate its share of this total market

.company sales force cast is the foundation of all budgeting and short-term

operational planning in all company departments marketing , production and

finance. The company view of its market greatly affects its relation and possibility

its production Research and development and other operating departments. A

segmentation market strategy involves selecting as the relationship market one

homogeneous group from with in the whole market. At the low level concentrate

on a single market segment rather than to take on many competitors in a whole

market. In multiple segmentation, two or many groups of potential customers are

identified as a relationship market segments .when separate market is develop to

reach each segment. Hindustan unilever limited frequently will develop a different

variety of the basic for each segment a multiple segment strategy normally result

in a greater sales volume than a single segment how ever the unit cost of

production and marketing also increase when multiple segment are targeted.

257
SEGMENTATION IN RELATIONSHIP MARKETING:-

(1) The basis for segment : - the characteristics used to categorize customers-

must are measurable and the data must be accessible. The “desire for

ecologically compatible products ” may be a characteristic that is useful in

segmenting the market for a given product. But data on this characteristic

are neither ready accessible her easily quantified.

(2) The market segment it self should be accessible through existing

relationship market institutions –channels of distribution, advertising media,

company sales force , and soon – with a minimum of cost and waste. Each

segment should be large enough to be profitable in relationship market

could treat each single customer as a separate segment it can segment its

market in many different ways and the bases for segmentation vary from

one product to another. Important point for follow the success of

(3) kinds of segment in relationships

(1) Regional population distribution

(2) Age

(3) Sex

(4) Urban –sub urban-rural population

(5) Family life-cycle

(6) Religion

258
 (7) Nationality

(8) Education

(9) Occupation

(10) Consumer income

(11) Physical needs

In using these base to relationship market we can make strong relationship

to consumers .the other point to observe is the inter relationship among

these factors especially among the demographic factor. The international-

ization of market and corporations , has changed the way Modern

Corporation do business today, everything has changed in globalization .to

reach the economies of scale necessary to achieve the low costs, and thus

the low prices, needed to be competitive company are how thinking of a

world wide market instead of a national market .Hindustan unileaver limited

a large corporation are now using matrix structures in which Product unit

are inter woven with country or regional units. (77)

GLOBAL IMPORTANCE AND HUL MARKET SEGMENTS

One of the most interesting applications was related by an executive in a

company manufacturing processed foods. He had read a summary article

about ROSTOW’S theory and deliberately set out to see how it applied to

his international business. He collected data on market indicators and on

259
 performance of major products in foreign markets. The markets were

grouped according to the level of development concept. From this analysis,

he discovered a significant relationship between the type of product sold

and the level of economic development. At the time of this study, he was

undertaking a similar analysis for other product line and was much

encouraged by the results. He is lived that this approach would be helpful in

developing a model of product mix appropriate to various levels of

development. The model could be used as a guideline in changing the

product mix in a given country as it moves from one stage of development

to another. (78 ) A slightly different classification scheme has been sug-

gested by dichter. According to his theory the relative size and nature of

a country’s middle class may be used to classify it in one of the following.

.
1 almost classless societies in stable countries (primarily the Scandinavian

countries)

2 affluent countries (the united states, west Germany, Switzerland,

Holland, and Canada)

3 countries in transition (England, France, Italy, Australia, South Africa,

and Japan)

4 Revolutionary country (Venezuela, Mexico, Argentina, brazil, Spain,

India, china, and the Philippines)

(78) ERNEST DICHTER, “THE WORLD CUSTOMER,”HARVARD BUSINESS REVIEW, JULY-AUGUST1962, PP.119-121.
260
 5 Primitive countries (the newly liberated countries of Africa and the

remaining colonial countries)

6 new-class societies (Russia and its satellites) DICHTER justifies this

scheme on the assumption that a large middle class desires more goods

and services and should be willing to work hard to acquire them. The

problem with DICHTER’S method is that it is difficult to develop and

adapt for practical application. As a matter affect, his own application of

this scheme to automobile markets can be questioned based on his

grouping of India and Spain in the same category. The automobile

market is much brooder in Spain than in India, because Spain’s

relatively liberal economic policies and entry into the European

community permit foreign cars access to its market, which is not true of

India. (79)

The marketing science institute (MSI) has developed a model that is a Refinement
.
beyond the ROSTOW & DICHTER schemes for a classifying countries into eco-

nomic groups. The Marketing science institute sponsored a study also looked into

the problem of grouping countries. After years of effort, the researcher’s associa-

tioted with the study developed three frameworks for grouping countries. One of

these three methods that are considered to be the most sophisticated is examined
(79) Bertil liander, vern terpstra, m.y. yoshino, and aziz a sherbini, comparative analysis for international marketing (Boston: allyn &bacon,
1967), pp. 63-64-90

261
here. The MSI model depicted in was used to consider countries based on twelve

environment and social factors relevant to marketing, as determined by a panal

of marketers.

EFFECTIVE ROLE OF SEGMENTATION IN RELATIONSHIP MARKET

The twelve factors considered in the grouping scheme were:

1. total population

2. population density

3. annual percentage rate of increase in population

4. percentage of population of working age

5. literacy (percentage of literate population aged 15 and over )

6. agricultural population as a percentage of total population

7 urbanization (percentage of population in cities with over 20,000 people)

8 primacy (population of the primary city as a percentage of total

population of the four largest cities) Societal factors

9 ethnographic density (number of distinct ethnographic group that

compose one percent of the total population)

10 religious homogeneity and identification

11 racial homogeneity and identification

12 linguistic homogeneity (80)

(80) See sudhir h. kale and d. sudharshan,” a strategic approach to international segmentation” international marketing review,
summer 1987, pp. 60-70.
262
 The multiple-variable approach assumes that countries with similar social-

Economic - political perspectives should be combined into segments. The

approach falsely assumes that countries are indivisible, heterogeneous units.

In recent years a refined approach has been advanced: the formation of inter

Country segments . (81) Groups of customers who are alike in different

countries from segments. In other words, each country’s market consists of

different segments. A particular segment in a country may be very much

like a similar segment in one or more other countries. These similar

segments belonging to different countries may be combined to from a

visibly inter market segment. The procedures and method of conducting

marketing research are conceptually the same for both domestic marketing

and international marketing.

Procedural similarities aside, international marketing research differs from

domestic marketing in four major ways:

1 The effects of the international environment on the whole company

as a Profit oriented unit are considered red. For example, the marketing

research project concerned with the ramifications of a substantial price

hike in a particular foreign country must consider questions that do not

apply to the domestic market;for example, will the company’s

(81) Theodore Levitt, “the globalization of markets,” havard business review, may-June 1983, pp. 92-102

263
 2 subsidiary be nationalized if prices are increased beyond a certain level?

3 many concepts and frameworks (i.e., market segmentation), which

constitute the core of marketing decision making in the domestic arena,

ma be unusable in international marketing, not because the concept

cannot be transferred, but because the information necessary to make

such a transfer is not available. For example, if there is a lack of

current income distribution data on a country, any analysis of the

demand for a product will assume incorrect income categories and

therefore, cannot mean much for practical purposes.

4 Finally, the ethnocentric nature of marketing makes cultural Differ-

Ences among nations a significant factor. Thus, culture in a Domestic

market can be considered to be naturally understood, but in international

marketing the culture must be fully investigated.(82) Hul has identified at

least 35 Indian brands of foods and home care product and personal care

products and has developed a different brand designed to meet the

special needs of each the hul brands are positioned for different segment.

(82)
BRAND SIGMENTATION OF RELATIONSHIP MARKETING:-

(1) BECEL: - Becel / flora product contain omega 3 and 6 that help keep

your heart healthy.

(82) SEE JAMES A. THWAITS, “GLOBAL MARKETING SUCCESS IS CONTINGENT ON A SOLID BANK OF FOREIGN
MARKETING INTELLIGENCE,” MARKETING NEWS, DECEMBER 22, 1983, PP.1.
264
 (2) BER TOLLI: - Bringing the mediterranean lifestyle in to your home.

(3) BLUE BIRD: - Try our healthy, affordable and convenient range of

margarine products.

(4) HEART BRAND: - Our heart brand ice cream range aims to inspire

people of all age to taste the fun side of life.

(5) HELL MANN’S AMORA: - For sensational food and moods.

(6) KNORR: - Our products help people make every meal a little more

special.

(7) LIPTON:-Making a big splash in the global beverages market.

(a) PERSONAL CARE BRANDS:-

(1) AXE: - Helping males keep a step a head in the mating game.

(2) DOVE: - Celebrating beauty’s diversity.

(3) LIFEBUOY: - Accessible hard working soaps and liquid gels.

(4) LUX: - Lux offers a range of highly appealing beauty products at

a price you can afford.

(5) PONDS; - Helping to keep your skin looking and feeling naturally

beautiful.

(6) REXONA:-Rexona gives you the confidence to handle whatever the

day has in stare.

(8) SIGNAL, CLOSEUP: - Protecting and enhancing your oral health 24

hours a day.
265
 (9) SUNSILK: - Sun a silk provider real a solution to women’s every day

hair needs every where.

(10) VASELINE: - To help you enjoy great, healthy skin every day.

(B) HOME CARE PRODUCTS:-

(1) CIF: - The power to deal with even the toughest dirt, everyday.

(2) COMFORT: - The best care for your clothes, your self and your

family.

(3) DOMESTOR: - Experts in killing germ with domestic you can be

sure the job is done.

(4) OMO: - Giving your kids the freedom to get dirty, safe is the

knowledge that omo will remove those awkward stains.

( 5) Radiant: - no other brand knows more about delivering superior

whiteness than radiant.

(6) SUNLIGHT: - Sunlight uses the magic of natural ingredients to

create unbeatable results.

(7) SURF: - Surf is on a mission to make every thing to touches

Brighter through cleaning and more. By segmenting the market and

several uses of brands,

Hul has an attractive offering for consumers in all important preference groups.

266
 5.4 GLOBAL CUSTOMER RESEARCH BY UNILEVER

The globalization of markets has been one of the major business developments in

the last three decades. Levitt asserts that technology has homogenized worldwide

markets; therefore, companies should produce globally standardized products and

market them in the same way to people everywhere. (83)

With 400 brands spanning 14 categories of home, personal care and foods

products, no other company touches so many people's lives in so many different

ways. brand portfolio has made the leaders in every field in which UL work. It

ranges from much – loved world favorites including Lipton, Knorr, Dove and

Omo, to trusted local brands such as Blue Band and Suave. From comforting

soups to warm a winter's day, to sensuous soaps that make you feel fabulous, UL

products help people get more out of life. constantly enhancing UL brands to

deliver more intense, rewarding product experiences. UL invest nearly €1 billion

every year in cutting edge research and development, and have five laboratories

around the world that explore new thinking and techniques to help develop its new

products.

“…...the multinational and the global corporation are not the same thing. The

multinational corporation operates in a number of countries, and adjusts its

products and practices in each – at high relative costs. The global

(83) (LEVITT, 1983; KEEGAN, 1999; SCHULTZ and KITCHEN, 2000).LEVITT, T. (1983)”THE GLOBALISATION OF MARKETS’
HARVARD BUINESS REVIEW,KEEGAN, W.J. (1999) GLOBAL MARKETING MANAGEMENT, PRENTICE HALL, NEW JERSEY, PP7-
14. SUHULTZ, D.E. AND KITCHEN, P.J. (2000) GLOBAL COMMUNICATIONS: AN INTEGRATED MARKETING
APPROACH, MACMILLAN BUSINESS, 2000.

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corporation operates with resolute constancy-at low relative cost-as if the entire

world ( or major regions of it) were a signal entity; it sells the same thing in the

same way everywhere ” Another global measure used by firms to monitor

customer relationship marketing performance is the measurement of

relationship satisfaction. Similar to his measurement of customer satisfaction,

which is now widely applied in many companies, relationship satisfaction,

which is now widely applied in many companies, relationship satisfaction

measurement would help in knowing to what extent relation partners are

satisfaction measures that are applied to measure satisfaction on one side of

the dyad, relationship satisfaction measures could be applied on both sides of the

dyad. Both the customer and the marketing firm have to perform in order to

produce the results in a cooperative relationship and hence each party relationship

satisfaction could be measured.

THIKING OF GLOBAL NEW CUSTOMER:-

Relationship marketing did not find its current status simply because it was a cute

buzzword that shrewd consultants could use to find new clients, or that clever

academic researchers could use to get their names in print. Instead, it grew out of

a dissatisfaction with the existing approaches to marketing that had been establi-

shed to serve an earlier set of business conditions, which have since undergone

change. Moreover, the rise of relationship marketing has to respond marketing

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to the "megatrends" of greater global competition, increased parity of product

offerings, rapid changes in technology that lower the costs of obtaining and

managing information, and shorter product life cycles that require less time to

recoup R&D costs.

The emergence of a relationship focus, say Sheth and Parvatiyar (1995a),

provides a refreshed and enhanced self-concept to marketing Continuous
growth of UNILEVER

Consumer research plays a vital role in our brands' development. We're constantly

developing new products and developing tried and tested brands to meet changing

tastes, lifestyles and expectations. And the strong roots in local markets also mean

UL is respond to consumers at a local level. By helping improve people's diets

and daily lives, IT can help them keep healthier for longer, look good and give

their children the best start in life.

UNILEVER also believe that the very business of conducting business in a

responsible way has a positive social impact. its create and share wealth, invest in

local economies and develop people's skills – both inside our organization and in

the communities around us. Today Unilever employs 174 000 people in 100

countries worldwide, and supports the jobs of many thousands of distributors,

contractors and suppliers.

GLOBAL GROWTH IN HEALTH & PERSONAL CARE:-

* First launched in France in 1983, our leading male grooming brand, Axe,

now gives guys the edge in the mating game in over 60 countries.

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 * UNILEVER oral care brands Mentadent, Peposodent and Signal have

teamed up with the world's largest dental federation, the FDI, which

represents over 750 000 dentists around the world

* Lux became the first mass-marketed soap when it launched in 1924. Today

it achieves annual global sales of over €1 billion

* Domestos is a best-selling brand in nine of the 35 countries in which it's

sold

Hindustan Unilever in India has launched a hand-wash product, Surf Excel

Quick Wash, with a low foaming formulation, reducing the amount of water

needed for rinsing by up to two buckets per wash.

Recent breakthroughs at Rexona include Rexona Crystal, a deodorant that

eliminates unsightly white deposits on dark garments

(A) Foods

Knorr is UNILEVER biggest food brand with a strong presence in over 80

countries and a product range including soups, sauces, bouillons, noodles and

complete meals.

We're the world's largest ice cream manufacturer, thanks to the success of

Company Heart brand which includes Magnum, Cornetto, Carte d' Or and

Solero,and Ben & Jerry's and Breyers in the US.

Lipton's tea-based drinks include the international Lipton Iced Tea range,

the Lipton range in North America and Lipton Yellow Label, the world's

favorite tea brand .

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 Becel / Flora proactive products have been recognized as the most significant

advancement in the dietary management of cholesterol in 40 years

HUL RESEARCH IN NUTRITIONAL QUALITY:-

The aim of our Nutrition Enhancement Programmed (NEP) is to improve the

nutritional quality of Unilever food and beverage products by assessing levels

of four nutrients: saturated fat, Trans fat, salt and sugar. The nutrition benchmarks

used in this assessment are based on international dietary guidelines.

In 2005 Unilever started a fundamental review of our entire portfolio. By 2007

Unilever had assessed all its 22 000 products. The exercise identified clear

Opportunities for reducing levels of fats, salt and sugar for more than half our

portfolio. Company initial review showed that over a third of UL products were

in line with internationally accepted guidelines for saturated and Trans fat, sugar

and salt. With the additional improvements company have made, this increased to

43% by the end of 2008, representing an increase of 15% since 2005.

The NEP has led to significant changes in many of our products over 2007–2008.

For example:

(B) Sugar:

* Unilever have reduced by up to 20% the added sugars in our range of

children's water ices such as the Calippo and Twister brands.

* company launched Lipton Ice Tea in seven European countries with 15%

less sugar.

* A ready-to-drink Green Ice Tea was introduced in four European countries

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with 30% less sugar.

(C) Salt:

Salt levels in soups have been cut, with an average reduction of 10% in

European dry soups and 7% in Latin America.

Knorr and Lipton side dishes in North America have also seen reductions in

salt of 10–15%.

* The Pot Noodle range in the UNITED KINGDOM and Ireland now has

up to 50% less salt per pot.

(D) Fat:

* The majority of Unilever Family Goodness (Rama/Blue Band) products in

Latin America and Asia have optimized their mix of vegetable oils in order

to reduce saturated fat content by up to 25%.

* Brayer’s ice cream launched 'fat free ' and 'light' ranges in North America

with up to 50% less saturated fat.

* In making these reductions Unilever have had to balance nutritional content

Against how a product tastes so that hul do not spoil consumers' enjoyment

of its foods. This is a difficult task for company product developers since in

blind tasting consumers often prefer well-salted products or those with

higher levels of fat.

(E) Salt reduction standard

Currently, many countries recommend a daily salt consumption of no more than

6g, whereas the World Health Organization recommends a daily intake of 5g per

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day. We recently committed to a strategy to further reduce the salt content of

Unilever global foods portfolio. Company translated this daily target into specific

reductions for entire portfolio of food products, aiming to reach 6g per day by

2010, with a further reduction to 5g per day by 2015 In making reductions,

company balance the optimum nutritional content with consumers' taste

preferences. This is a delicate balance to achieve since blind tasting shows that

consumers often prefer well-salted products to those with reduced levels of salt.

they keep its portfolio under regular review and will explore opportunities for

increasing healthy offerings as new technologies emerge. For example, Hellmann’

Extra Light mayonnaise with only 3% fat was made possible thanks to a new

Technology using natural citrus fiber which reduces calorie content while

maintaining a creamy texture.In the mid 1990s UL led the industry with company

programme to eliminate almost all trans fat from our margarine

RESPONSIBLE MARKETING IN RELATIONSHIP MARKE

Through Unilever marketing and advertising the opportunity to inform people

about the benefits of company products and innovations. At the same time

Unilever acknowledge the influence of marketing on consumers and take it

responsibilities seriously . For example, people in many parts of the world have

concerns about advertising food to children. Our Food and Beverage Marketing

Principles provide guidance to Unilever brand managers. Any advertising to

Children under the age of six is prohibited and advertising to children aged six to

12 is limited to products that meet strict nutritional criteria. This principle has also

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enabled us to take a leading role in agreeing cross-industry voluntary

commitments and pledges to restrict advertising to children in regions such as the

United state and Europe. Specific guidelines for school education programmers

Ensure that food products will not be promoted as part of these programmers.

In 2007 Unilever introduced a global guideline banning the use of size zero

Models or actors in all our marketing and advertising. Only models/actors that

have a body mass index between 18.5 and 25 were to be used in our advertising, a

range in line with United Nations guidance on what is considered healthy.

In May 2008 Unilever was presented with the AED Corporate Leadership Award

by the Academy for Eating Disorders in recognition for our responsible marketing

campaign in advancing the awareness and treatment of eating disorders.

(A) GROWTH ADDRESSING UNDER -NUTRITION

Tackling under-nutrition is a complex challenge with a range of socio-economic

causes. Rising fuel and commodity prices in early 2008 exacerbated the

difficulties, making food less affordable for millions of people.

Unilever provides products that make up an important part of people's everyday

diets, such as spreads, cooking oils and stock cubes. Our brands can play a role in

tackling under-nutrition and in particular, micronutrient deficiencies. For example,

our Rama/Blue Band spreads are a good source of vitamins A, D and E and our

Amaze products contain important nutrients (iron and iodine) for children's mental

development. Annapurna iodized salt helps prevents iodine deficiency -related

diseases and is sold in India, Ghana, Nigeria and Malawi.

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 However, selling fortified product at affordeble price while maintaining

Adequate margins is not always easy. Such constraints led us to cancel some new

Fortification projects, but Unilever will continue to explore innovations in local

sourcing, manufacturing, packaging and distribution, in partnership with others.

Our contribution to solving the issues of under-nutrition goes beyond the

nutritional value of Unilever products. The complex social and public health

challenges of poor nutrition can only be solved by working in partnership with

others. In December 2006 UNILEVER joined the UN World Food Programmed in

a three-year partnership, Together for Child Vitality, which aims to improve the

health and nutrition of school children in developing countries. We are a board

member of the Global Alliance for Improved Nutrition and we chair the GAIN

Business Alliance. Through this partnership we are exploring a range of

Fortification initiatives and new business models to combat micronutrient

deficiencies. Unilever is financing the Micronutrients and International Health

Chair at Wageningen University in the Netherlands for five years. This is to

support research on micronutrient deficiencies in the developing world. As part of

this research programmed, we also fund three PhD and six master's level

scholarships for students from developing countries, helping them to become

future nutrition experts in their home countries.

UNILEVER RESEARCH IN GLOBAL CONSUMER BEHAVIOR :-

Brand communication can be a powerful force for behavior change. Through it,

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United nation have the opportunity to promote healthy lifestyles among our

Millions of consumers. Eating margarine and mayonnaise is a simple, tasty way

to consume essential fats and fat-soluble vitamins, yet many consumers see these

products as unhealthy. During 2008 company continued to roll out our Goodness

of Margarine campaign to 12 countries to give consumers a more informed view

of UNILEVER products' contribution to public health. For mayonnaise, we

continued our global communication that Hellmann's mayonnaise is made with

real, simple ingredients and is naturally rich in Omega-3.In 2008, Becel in Canada

became the founding sponsor of the Canadian Heart and Stroke Foundation's

Heart Truth initiative. The campaign specifically aimed to reach women through

TV advertisements and sponsorship of the Red Dress Fashion Show. In three

months, awareness of heart disease among women nearly doubled. The campaign

also drove up sales of Becel by 10%.In the United kingdom and Ireland, Flora has

worked with cholesterol charity, HEART United kingdom, on a range of

initiatives to encourage people to make heart-healthy choices. Results from Flora

proactive testing the Nation road shows were analyzed and published in the

International Journal of Clinical Practice in 2008 by Oxford University under the

auspices of HEART United kingdom. The findings helped to inform the develop-

ment of national policy on cardiovascular health including the government’s new

vascular risk check programmed for everyone from 40–75 years.

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 5.5 THE MARKETING COMUNICATION MIX

The company communicates with its intermediary’s retailers and wholesalers,

consumer, and various publics, in turn, the intermediaries communicate with their

consumers and public’s consumer has word - of-mouth communication with each

other and with other publics. Meanwhile, each group provides feedback to every

other group. A company’s total ---- MARKETING COMMUNICATIONS MIX,

also called its PROMOTION MIX, and consists of the specific blend of

advertising, personal selling, sales promotion, public relations and direct marketing

tools that the company uses to pursue its advertising and marketing objectives.

Definitions of the five major promotion tools follow:-

ADVERTISING : -any paid form of non personal presentation and promotion of

Ideas , goods, or services by an identified sponsor.

1 PERSONAL SELLING:- personal presentation by the firm’s sale force

For the purpose of making sales and building customer relationships.

2 SALES PROMOTION: - short-term incentives to encourage the purchase

or sales of product or service.

3 PUBLIC RELATIONS : - building good relations with the company’s

various publics by obtaining favorable publicity, building up a good

corporate image, and handling or heading off unfavorable rumors, stories,

and events.
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 4 DIRECT MARKETING: - direct communications with carefully targeted

individual consumers to obtain an immediate response –the use of mail,

telephone, fax, e - mail, and other non personal tools to communicate

directly with specific consumers or solicit a direct response

Fund amen tally the communication process requires only four elements a

message , a source of this message a communication channel and receiver. How

ever in practice , additional elements come in to play. The information that the

sending source wants to share must first be encoded in to transmittable from,

transmitted, and the decode by the receiver, another element to be reckoned

with is noise. Which is any thing that tends to ? Distort the - message at any

stage in the system ? The final element in the process feed back –tell the sender

whether the message was received by the company the feedback is also the basis

for planning a head. The sender learns how the information source may be

a person with an idea to communicate .this person willed code the idea in to

written or spoken words or in the sender uses a gesture of some sort (waving the

arm sort dimming bright light). The coded message is then carried by print media,

sound waves or light waves to the destination. Today internet is early in use. An

executive wants to communicate a selling massage to consumers. The message is

encoded in to a radio commercial and carried to the consumer via a radio or mobile

message program and a receiving set the consumer see and hear the commercial

and inter prêt it. Through relationship marketing research feedback the sender tries

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to determine how effectively message come through and how much it moved the

(5) ADVERTISING:-any paid form of non personal presentation and promotion of

ideas, goods, or services by an identified sponsor.

Each category involves specific tool advertising includes print, broad-cast,outdoor,

and other forms. Personal selling includes sales presentations, tradeshows, and

Incentive programs. Sales promotion includes point – of - purchase displays,

premiums discounts , coupons , specialty advertising, and demonstrations .direct

marketing includes catalogs , telemarketing , fax the internet, and more like

newspapers, radio, telephone , television new technologies like fax machines,

cellular phones, pagers, and computers the new technologies have encouraged and

more consumer to action.(84)

By linking companies with their suppliers, distributors, and customers, information

networks provide another source of flexibility. Among other outcomes, these

networks when used effectively.

Customer relationship management is one form of an information-based network

process that firms use to do this. An effective customer relationship management

system provides a 360- degree view of the company’s relationship with customers,

encompassing all contact points, business processes, and communication media

and sales channels .Better work flow and more effective communications allow

workers to quickly identify problems and find flexible ways of dealing with
(84) THE FIRST FOUR OF THESE DEFINATIONSW ARE ADAPTED FROM PETER D. BENNETT, dictionary of marketing terms
(Chicago: American marketing association, 1995).

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them.(85)

Marketing communication acquires new customers for brands by building

Awareness and encouraging trial. Marketing communication also maintains a

brand's current customer base by reinforcing their purchase behavior by providing

additional information about the brand's benefits. Thus, two ideas permeate

relationship marketing communication: relationship building and synergy. Rather

than the relation inside-out view, seen as an outside-in perspective. Customers are

viewed not as targets but as partners in an ongoing relationship. Customers,

prospects, and others encounter the brand and company through a host of sources

and create from these various contacts ideas about the brand and company. By

knowing the media habits and lifestyles of important consumer segments,

marketers can tailor messages through media that are most likely to reach these

segments at times when these segments are most likely to be receptive to these

messages, thus optimizing the marketing communication mix effort. For marketing

communication to be successful, however, sound management decisions must be

made in the other three areas of the marketing mix: the product, service or idea

itself; the price at which the brand will be offered; and the places at or through

which customers may purchase the brand. The best promotion cannot overcome
(85) A.MCAFEE, 2003, WHEN TOO MUCH IT KMOWLEDGE IS A DANGEROUS THING, the mckinsey quarterly, number 1, 57-65.
S.W. BROWN, 2003, THE EMPLOYEE EXPERIENCE, MARKETING MANAGEMANT, 12(2): 12-13.
S.LSAAC & R.N.TOOKER, 2001 THE MANY FACES OF crm, LIMRA’S MARKET FACTS QUARTERLY, 20 (1): 84-89.
G.EDMONDSON, 2005, BMW KEEPS THE HOME FIRES BURNING, BUSINESS WEEK, MAY 30, 52.

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poor product quality, inordinately high prices, or insufficient retail distribution.

Likewise, Indian successful marketing communication relies on sound

management decisions regarding the coordination of the various elements of the

communication mix. To this end, a new way of viewing marketing communication

emerged in the relationship marketing communication, this perspective seeks to

orchestrate the use of all forms of the communication mix to reach customers at

different levels in new and better ways. Customers are viewed not as targets but as

partners in an ongoing relationship. Customers, prospects, and others encounter the

brand and company through a host of sources and create from these various

contacts ideas about the brand and company. By knowing the consumer habits

and lifestyles of important consumer segments, marketers can tailor messages

through media that are most likely to reach these segments at times when these

segments are most important.

IMPORTANCE OF COMMUNICATION ADVERTISING IN

RELATIONSHIP MARKET

Advertising has four characteristics: it is persuasive in nature; it is non-persona

it is paid for by an identified sponsor; and it is disseminated through mass channels

of communication. Advertising messages may promote the adoption of goods,

services, persons, or ideas. Because the sales message is disseminated through the

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media—as opposed to personal selling—it is viewed as a much cheaper way of

reaching consumers. However, its non-personal nature means it lacks the ability to

tailor the sales message to the message recipient and, more importantly, actually

get the sale. Therefore, advertising effects are best measured in terms of increasing

awareness and changing attitudes and opinions, not creating sales. Advertising's

contribution to sales is difficult to isolate because many factors influence sales.

The contribution advertising makes to sales are best viewed over the long run. The

Exception to this thinking is within the internet arena. Technology provides the

Ability to track how many of a website's visitors click the banner, investigate a

product, request more information, and ultimately make a purchase.

consumers to ignore many advertising messages. New media are emerging, such as

(digital video recorders) which allow consumers to record programs and then skip

commercials, and satellite radio which provides a majority of its channels

for its faviour.

THE FUTURE OF MARKETING COMMUNICATION MIX:-

Marketing communication has become an integral part of the social and economic

System in the ASIAN COUNTRY like india & china. Consumers rely on the

Information from marketing communication to make wise purchase decisions.

Businesses, ranging from multinational corporations to small retailers, depend on

marketing communication to sell their goods and services.

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Marketing communication mix has also become an important player in the life of

Success company. Marketing communication helps move products, services, and

ideas from manufacturers to end users and builds and maintains relationships with

customers, prospects, and other important stakeholders in the company.

Advertising and sales promotion will continue to play important roles in marketing

Communication mix. However, marketing strategies that stress relationship

building in addition to producing sales will force marketers to consider all the

elements in the marketing communication mix. In the future new information

gathering techniques will help marketers target more precisely customers and

prospects using relationship marketing strategies. New media technologies will

provide businesses and consumers new ways to establish and reinforce

relationships that are important for the success of the firm and important for

consumers as they make purchase decisions. The Internet will become a major

force in how organizations communicate with a variety of constituents, customers,

clients, and other interested parties.

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 5.6 OTHER ASPECTS OF RELATIONSHIP MARKETING BY HUL

Stung by the sustained loss of market share to regional players, Hindustan Unilever

, India’s largest FMCG firm, is now drawing up district-wise distribution & pricing

plans Regional players have hit Hindustan Unilever (HUL) where it hurts the most.

Personal care products, the firm’s most profitable segment, has been losing market

share consistently over the past several quarters.

FINANCIAL STRATEGY FOR PRESENT MARKET BY HUL:-

The first quarter of this financial year hasn’t been too exciting either. Domestic

sales grew by 12.8 per cent, with underlying volume growth of about 2 per cent.

Though that was a distinct improvement as volumes had declined by about 4 per

cent in the previous quarter, the country’s largest fast moving consumer goods

company isn’t happy. So HUL is fighting back. But to understand its new strategy,

let’ look at what the competition has been doing of late. Chennai-based Cavincare,

the second largest manufacturer and marketer of shampoo in India with brands like

Chik, Nyle, Meera and Karthika, came out with single serve packs to make inroads

into a market dominated by multinationals like Hindustan Unilever’s Sunsilk and

Clinic All Clear.

Similarly, Anchor Health & Beauty Care took on HUL’s Pepsodent and Close-up

by launching 100 per cent vegetarian Anchor toothpaste. It also forced the market

leader to drop prices to retain consumer loyalty.

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In detergents, too, smaller regional players like Ghadi, Sasa and Power have dented

the volumes and market share of HUL’s Rs 2000 crore detergent brand Wheel. like

wise, in soaps, Wipro Consumer Care and Lighting’s Santoor has now become the

largest soap brand in South India and Godrej Consumer Products Godrej No 1 is

the market leader in the lucrative Northern market.

DEVELOP PORTFOLIO IN INDIA IN RELATIONSHIP

MARKETING:-

Stung by the loss of market share, HUL is now tweaking its go-to-market strategy

by focusing on individual states and even districts. The strategy is ‘glocal’ – think

global, act local. There are three key things that they are trying to do.

The first is winning state by state. Each state presents a different nature of compet-

Etion and a different growth challenge whether it is increasing penetration or

driving consumption through deployment of the relevant portfolio.The state led

distribution strategy will give the Anglo Dutch Unilever Indian unit an opportunity

to play out its full portfolio of brands to arrest its falling market share and volumes

as consumers were down-trading to smaller regional brands. The company is now

strengthening its regional brands like Hamam in Tamil Nadu; Rexona in Andhra

Pradesh and Karnataka; Breeze in the Hindi belt and Sunlight in Kerala and West

Bengal.

The maker of Lifebuoy, Wheel and Lux is also playing the pricing game it has

already reduced the price of Lifebuoy by Re 1. This was necessary as the latest

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Nielsen data showed that Lifebuoy has lost value market share and was down 176

basis points year-on-year (y-o-y). Likewise in detergents, volumes declined 8.8 per

cent y-o-y over the same period, last year. That’s something the company wants to

correct as fast as possible. The stakes are high indeed – for example, Wheel is a

crucial volume grosser for the company and HUL has no option but to ensure that

consumers stay with the brand.So HUL has identified “right pricing” as a primary

tool to increase its competitiveness in a market where most of its brands were

losing customers to their rivals. A key enabler to “right-pricing” is reducing the

cycle time substantially. What this translates in to is a more flexible supply chain

at the backend, consolidation of distributors, reduction of inventories at distributor

points, more frequent despatches and therefore greater speed at the front end.

FINANCIAL INVESTMENT IN RELATIONSHIP MARKET:-

The second part of the strategy is greater focus on Return on Marketing investment

HUL is looking at different aspects like promotion, distribution and advertising to

understand what drives growth and how much growth. They have developed a

model and are using this across the company to make decisions of investment

dynamically. Based on this they have substantially increased investments on brand

The third part of HUL’s strategy is increasing the quality and speed of innovations

and launches that it brings to the market. In the just concluded quarter the company

’s y-o-y advertising spends increased by 26 per cent.

During the quarter-ending June 30, 2009, the company stepped up its investment

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on brands. The quarter also saw activities across segments – in soaps, Lifebuoy and

Liril were re-launched; and in shampoo, Clinic All Clear was re- launched. There

Were new brand launches – Ponds White Beauty, the premium skin lightening

cream, and Vaseline Healthy White body lotion.

A global brand Cif, in the surface cleaning segment was introduced. In oral care,

Pepsodent returned with its original proposition of fighting germs for longer hours.

And Wheel saw its net content (gram mage) increase.

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