Alan Mulally’s Restructuring of Ford Motor Company

According to the Nelson & Quick, Manually renderd one team focusing on track inciter. intersection was acc usaged in the recession time, to keep likewise many a(prenominal) brands under its corporate umbrella so it cant focus on its cash cow Ford Brand. He sold out Jaguar cars, attain Rover brand and Volvo cars to minimize the corporate losses. (wickeder. Com). Following answers focus more on what extent his managerial and structural change decisions helpful to create bankable brand. 1. What are the key structural issues that Alan Manually encountered as incoming president and CEO of Ford? An automobile has about 10,000 moving parts, right?An airplane has 2 million, and it has to Stay up in the this is the answer Alan Manually provided when he was being asked a question by a journalist How are you going to cheat something as complex and unfamiliar as the auto business when we are in such tough financial shape. It was that tough when Manually came into crossing from Boeing. There were significant structural issues were at the Ford. Naming them, financial crisis- while other major car manufacturers filing bankruptcy, according to nelson (2013) ford dad to reason out to stand on its own feet and go it alone (p. 39).Internal culture- when Manually come in ford has a very militant rivalry culture and didnt help oftentimes to its profitability. According to Nelson & Quick (2013) those who believe that competitive rivalry brings out the best, others know win lose competition carries costs for everyone involved (p. 64). Additionally, Ford was famous for innovation car and mass production people didnt buy ford because it is quality car. Ford is inherently face a challenge in a being of cars to retrace a culture quality. Nelson & Quick, 2013). Too many brands- when Manually come in, ford is more focusing on other attached brands than ford brand name.At the time ford owned Jaguar, Volvo cars, Mazda, Land Rover and Gaston Martin. Which loss the focus of man agement towards ford brand. Dont have a right products- Manually saw voltage of ford focus as a world car and but they didnt market it as it supposed to be and Ford Taurus Was a roaring seller and they already discontinued that product How has Alan Manually addressed structural issues identified in the previous question? When Manually came in 2006, financial crisis was at its peak. He decided not to borrow money from government and stand its own feet.It was a right decision, because, overnight sales went up due to many patriotic Americans decided to switch to ford. He borrowed $24 billion from other parties and Stop dividends to shareholders. He sold all the other brands loosely associated with ford. By selling those brand Manually collected some money to get out of recession. Internal culture- when Manually came in, there was competitive culture. It was not helping the good team. Ford was thinking, by competitive culture best come out and actual result was there are bunch of unh appy internal customers.So Manually created a culture of applauding openness and problem recognition culture. Quality issue- ford ware coincided by the whole instituteed as a common car. Manually wanted to create a ford as a quality product what exactly customers looking for. Too many brands so entire ford team work as one. According to Nelson & Quick (2013) ford anticipates consumer needs and delivers outstanding products and services that improve peoples lives (p. 315). Loss focus- ford has so many brands under its corporate umbrella those did not help them to focus on ford brand.Manually decided to sell them all to get cash to recover the recession. That was increased attention towards ford brand. put down thorn right product- first thing Manually did at the ford was bring back Taurus brand which was discontinues for no reason. Which helped to bring loyal customers back Explain the context that ford strategic goals provide for the design of its organization structure (Figurer ford motor company structure) Fords strategic goals were 1 . Ford is a global family with a proud heritage passionately committed to providing personal mobility to people around the world (Nelson & Quick, 201 3), 2.Ford anticipates consumer needs and delivering outstanding products and services that improves peoples lives. Current ford culture would not help to achieve these targets. Inherently automobile industry is fairly club. According to Nelson & Quick (201 3), Ford was known for the feudal infighting about its executives, conflicts consumed time, dexterity and resources in counterproductive internecine warfare (p. 349). In order to meet the challenge successfully, ford needs an outstanding team. Eventually Manually able to build the winning team.Nelson & Quick (2013) mentioned that Manually became a unifying figure who pulled the entire team together collectively. Manually introduced large scale system integration in to ford learned from Boeing. Which was challenging at firs t at ford. Ford had a linear structure shown above. This kind of system is ideal for manufacturing company. The problem was they didnt use the structure properly. Company culture, and structure wasnt that problem, problem was there are some recesses need to fine tune. Reason given for that was ford never felt a fresh blood so often.Manually had to fine tune corroded systems in general. He created united team, he created open door policy instead of competitive policy, he standardize manufacturing pants, etc By doing all the repairs for this old system, team was align for their new strategy to conquer the market. Would a cyberspace (or lattice) organization be a viable structural alternative for ford? Explain your answer (Figurer Sample network organization) According to my knowledge, linear organization structure would be better Han network organizational structure for the manufacturing company.

Accountability Memo

MEMORANDUM Subject Increasing of public scrutiny on not-for-profit reporting requirements The purpose of this memorandum is to explain why increasing scrutiny and demand for accountability by the public has influenced reporting for not-for-profit and governmental entities. State and federal regulators are reviewing, audit reports of agencies similar ours that receive federal grants and loan monies. Their purpose is to ensure that independent audit firms are in compliance with Generally Accepted Audit Standards (GAAS) and recently added requirements under(a) Generally Accepted Government Auditing Standards (GAGAS) or yellow book standards.The reporting requirements that the auditors require to be able to prepare a statement of understanding of informal control structure is of particular vex. Because we are a not-for-profit company, the auditors have to report what certain members have the clearance to report cash donations and make deposits directly to the companies depose accou nt. The auditors also need to evaluate the internal controls we have in place to prevent theft, and report the strengths and weaknesses of our system. As a result, we need to provide the auditors with access to our calculator transactions for all finance members.Your cooperation is greatly appreciated in this matter and being in compliance will the auditors will help protect our interest in continuing to receive federal monies as part of our operating budget. Sincerely, References Williams , J L (Summer 1992 . New audit standards for audits of entities receiving federal financial help . wit , 60 , n2 .. 51 (1 . Retrieved August 5, 2012 General One via Gale HYPERLINK http /find . galegroup . com /ips /start . do ? prodId IPS http /find . galegroup . com /ips /start . do ? prodId IPS Steinberg , R M Johnson , R N (August 1991 . Implementing SAS no . 55

Health and Safety Essay

Potential for f everying objects The employer or employee mustiness make sure that all items of equip ment, materials and alsols that argon not in use must be stored/stacked correctly and securely. Otherwise, in that location is a potential that the item/item whitethorn overtake and injure a person. .Sharp edges and trailing leads Sharp edges must be rounded off to make sure that a person does not band a part of their body on them and trailing leads should be wrapped in something protective to bunch them together, and to make sure they are out of the way..Evacuation assembly areas This is a designated area for staff and other members to meet. We stool these to round up people away from the bam to ensure the safety of everyone. Employers must train their staff round a fire evacuation, making sure they know which compass point on the premises to go to. .Site building works From time to time, employees may find themselves having to estimate certain areas which may be fanta stic, having to come into contact with hazardous substances or having to be exposed to noisy areas.It is the employers that should ensure that any building work is unbroken separate from employees but in certain circumstances, all care must be interpreted to make sure employees are kept safe in their working environment. .Off-site work Any stakes that are connected with off-site work must be assessed before the work takes place. These risks are highlighted and guardled in a akin(predicate) way as to how they would be in the workplace. Employees and individuals involved in off-site working must be provided with the correct training and must be precondition the right information about health and safety working..Organic infestation When organic pests arrive in the workplace, they force out present infection hazards, be offensive, contaminate nourishment, relieve oneself damage to materials and structures and also, brush off be an annoyance to employees. Employers have a h andicraft to ensure that there is an efficient management of organic pests, otherwise things may escalate. and also, employees have a responsibility to report any sightings of pests or to bring up evidence of their existence to the suitable person. .Vermin infestation Vermin infestation rouse cause some serious problems in the workplace.This butt include damage to equipment, damage to electrical supplies, and contamination of any water supplies and also the threat of having un grievousness from droppings or urine. Employers must make sure that they carry out risk assessments and employees must make sure that they report any sightings of rat/mice activity. Infestations can be prevented by having good workplace hygiene, which involves regular housekeeping, (vacuuming, cleaning carpets and fabrics thoroughly). .Dampness and Mould When dampness and mould arises, it can cause numerous health issues and problems for the employees who work there.They may suffer from allergies and col d-like symptoms, which includes sneezing and irritable eyes. Damp problems can also cause serious respiratory problems for employees. It is the employers duty to keep his staff happy and healthy, and so to stick with this, they should ensure that they can do all they can to prevent it. Ways which consist of drying up any condensation around the workplace at bottom 48 hours, install proper spreading and ensuring that cold surfaces are properly insulted. .Materials and Waste disposal Some employees may come into contact with materials which could be hazardous to their health.If this isnt dealt with properly, these can result in injury or even death. Employers must certify that they minimise the risks to their workers that are exposed to these materials. As rise up as this, managers have a duty to make sure that hazardous waste is accurately recognized at certain stages of production and that appropriate measures are taken to protect the health of the surrounding people. .Hygiene f acilities There are general welfare requirements for staff and employers must ensure that certain minimum levels of hygiene facilities are provided in the workplace.Types of washing facilities depend on the nature of what type of working business it is. The area in which staff can wash must be in an easy, accessible place. They must be hygienic, well lit and ventilate. Hot scoop shovel and water must be provided and either hand towels and electric hand dryers. Also, men and women should have separate facilities. .Disabled access and toilet facilities Employers have a duty to ensure that if they do employer a person who is disabled to come and work for them, that there is sufficient disabled washing facilities and toilet facilities.The facilities should have drop big bucks hand and also support rails, emergency pull cords, accessible wash basins, soap dispensers, toilet paper and paper towels. .Food preparation areas In any type of food preparation are, there must be strict rule s and regulations laid down by the employer to prevent food from being contaminated. As well as this, it is their responsibility to make sure that their employees and staff arent a risk to food safety. This is where employers need to focus on 4 main areas to ensure health and safety keeping the area clean, reporting any illnesses, clothing and personal cleanliness/hygiene..Pest control Employers must do a payoff of things to control pests. A few of them being securing buildings to prevent them from entering, setting and maintain poisons and traps to kill them, spraying insecticides to kill pests and episode ultraviolet insect killers. .Noise and atmospheric pollution This can be a serious issue to workers and employers have a duty to reduce any hinderance pollution that might lead to damage to the ears. The Control of Noise at Work Regulations applies to any workers who are exposed to noises over 85 decibels or to a greater extent in the workplace.Long- knowing exposure to this amount of noise will damage an employees hearing. In addition to controlling noise pollution, employers must ensure that their workers arent exposed to atmospheric pollution. This is known as air pollution. Atmospheric pollution is any particulate matter present in the air that has the potential to damage soulfulnesss health. This includes dust, fumes and gases. Any health condition that is caused by atmospheric pollution has the potential to be very fatal for the people in the workplace. Employers have a legal responsibility to make sure that risk assessments are carried out.Suitable and efficient provision must be provided to ensure that every workspace is freshen by a quantity of fresh or even purified air. .Temperature and ventilation Temperature in work areas should provide reasonable comfort without the need for certain types of clothing. If the temperature is too hot or cold, steps should be taken to achieve a reasonable temperature which is close to comfortable. If emplo yees, staff or any sort of worker is exposed to temperatures that are too high or low, the employer must make provision to make sure that their workers are as comfortable as possible.As well as temperature control, workplaces must ensure that there is some form of ventilation. This gives workers the opportunity to breathe fresh, clean air when they are working. Windows can be one from of ventilation and another could be properly installed mechanical systems. Both of which provide ventilation for workers. Ventilation systems which are provided in the workplace should remove and dilute, warm, humid air which can sometimes be uncomfortable to work in. .Equipment Maintenance of a safe working environment ranges from having safe equipment and warning signs to help protect workers from being harmed..Safety guards The guarding of stern machinery has been a legal requirement for many years under the Health and Safety at Work act 1974. Employers must make sure that grave machinery that i s being used by the workers are trained and the appropriate person for the job. .Warning signs and sound signals One of the most common safety features in the workplace are warning signs which are used to alert employees and workers to the potential risks or dangers that are around them. Also, warning signs may instruct employees on what to do if an emergency occurred. original signs such as fire exits must be able to light up in the case of an emergency and they must also be fitted with audible alarms. Training must be provided to every employee so that they understand the information or directions being conveyed by any warning signs in their workplace. Another point is, is that the general safety requirements for staff in the workplace is that all workers should be aware of any sound signals that the company uses if there is ever an emergency situation. These sound signals are classed as safety signs and staff should make sure that they know what to do if one of these goes off.S taff and workers should be trained to know what each and every sound signal means in case of an emergency and also to know what they have to do in the event of hearing it go off. .Maintenance oftenness A lot of accidents that that happen in the workplace are due to faulty or poorly maintained work equipment. Employers have a duty to make sure that all of their equipment is maintained and in good shape. They should also ensure that the maintenance log is kept up to date showing when the machinery and equipment was last inspected/serviced.The maintenance frequency of workplace machinery and equipment depends on numerous factors, such as the working limits and maximum use of equipment, how it is used and the risk to safety of malfunction. .Protective clothing several(prenominal) job roles require staff and workers to wear protective clothing. This can make the job that they have much easier, can prevent them from getting an injury and can even save lives. Gloves, helmets, footwear, face masks, chemical suits, high-visibility vests and eye protectors all come under types of PPE.It is the employers responsibility to ensure that their workers and employees have PPE provided and that it also matches the potential hazards. They must also ensure that employees know why they must wear their PPE and that it must be worn correctly. .Accessible emergency exits As a part of their emergency risk assessment, employers must take into consideration whether, in the event of an emergency, like a fire that is taking place, all individuals that are in the workplace could leave in a safe manner and reach a safe destination. So for this, they must provide safe and accessible fire exits.These fire exits must be clearly signposted with signs that light up and that are alarmed. .Fire extinguishers or sprinkler systems In the workplace, employers must make sure that they provide the means for staff to treat small fires. The number of fire extinguishers that are required within a bus iness, all depends on how large or small that business is. Typically, extinguishers are sited next to potential fire risks, such as heaters or a computer, and they are also close to exit doors and stairways. Also, extinguishers must be evidently signed and labelled.There are quintet main types of extinguisher, and these are water, foam, CO2, powder and wet chemical. Employers must make sure that they train their staff and workers to know which type of extinguisher to use on a fire and so that they also know how to work them properly. A much more effective way of dealing with fires that occur in the workplace, is the installation of a water sprinkler system. These work by a fire activating them and water is then fed from the water supply and puts out the fire. These sprinkler systems are seen as a safer way of putting out a fire and also much more effective.

Great Ideologies Stemming Out From Chaos Essay

doubting Thomas Hobbes, Jean-Jacques Rousoceanu and Thomas Paine, three great political philosophers, all view the disposition of man and hostelry as anarchical, which is a fix of lawlessness or political dis company due to the absence of g everyplacenmental authority, making it war of all against all. The utopian smart set of individuals enjoys complete exemption without government, wherein there is a display of a lack of righteousity for most of the time. In the Leviathan, Thomas Hobbes presented the political state as a Leviathana sea monster. As a metaphor for the state, it is described as a replica of a person whose body is made up of all the bodies of its citizens, who ar the tangible members of the Leviathans body, and placing the sovereign as the head. In order for them to escape this natural condition, the people in the state constructed the Leviathan through social contract wherein they give up certain natural rights and transfer them to an opposite person of author ity.In turn, the power of the Leviathan protects them from the abuses of one another. The source of inequality comes from the scarcity of resources. If one looks around at other animalsHobbes specifically notes ants and beesthey appear to live harmoniously with one another without any sort of state or society. If they chiffonier do so, then why cant men who are, after all, animals themselves? Hobbes discussed several reasons as to why men cannot live this management the main one being that men are sharp-witted creatures.If we lived in some pre-societal concord with others, reason would always devise ways for us to cheat and make ourselves better off than others in order for us to survive. Furtherto a greater extent, as we homos possess speech, we are able to mislead one another about our wants and desires. Hobbes also claims that animals naturally agree with one another speckle humans do not, and the reason for this essentially is because man is competitive in nature and there fore views everyone around him as a threat.Therefore, the government is created to provide order and regulation. For Hobbes, the best form of government is monarchy for four reasons first, since humans will always choose the private over the public good, the best way to ensure placidity when choosing a sovereign is to involve these united. And by the outweighing of private good over public ones, infighting and corruption within government is encouraged. Second, having a secret counsel is allowed in a monarchy as opposed to in a democracy or aristocracy.Third, a monarchy is more consistent since the monarch is one person and humans are not perfectly consistent, the commonwealth changes only as human nature dictates. In a democracy and aristocracy, because more natural bodies compose the sovereign, the commonwealth is more subject to human inconsistency as well as the inconsistency that comes from a change in the makeup of the sovereign, which happens with each election cycle or new member of the aristocracy. Lastly, infighting or warring factions caused by envy, self-interest, or any other human imperfections cannot be seen in a monarchy.On the other hand, Jean-Jacques Rousseau views the government as an abomi tribe because it interferes with the nature of man. His aim is to examine the foundations of inequality among men, and to determine whether this inequality is authorized by natural law. He attempts to demonstrate that modern moral inequality, which is created by an agreement among men, is unnatural and unrelated to the true nature of man and that it is necessary to consider human nature and to chart how that nature has evolved over the centuries to produce modern man and modern society.Like Hobbes, he describes man as just another animal, and this proves to be very important. The distinction between human and animal was used both to justify mans possession and use of the Earths resources, and to explain why humans apparently have certain unique capabil ities, such as reason and language. He further expounds that man is like yet unlike other animals, due to the unique way he develops. And as time goes by, human faculties were being fully developed. To be and to appear became two different things. Man became subjugated by a great deal of new needs, especially by his need for other men. Man became a slave to men as one takes pleasure in domination and tries to be their master.However, this is only true for the rich. When the powerful claims a right to another persons goods, such as the right of property, the inequality can lead to a state of war. Therefore, the rich tried to persuade the weak, who were indeed easily convinced, to unite with them into a supreme power to institute rules of justice and peace. Men ran towards their chains in the belief that they were securing their drop by the waysidedom, while those who did know about the deceit thought that they could trade part of their freedom for security.Although his idea sounds wrong, it essentially represents a point at which the self-preservation and feel for of savage man are perfectly balanced with the acute regard for oneself in relation to others of modern man. Some aspects of reason and communal life are good, but they are still potentially destructive. In criticizing civility and concern for others as negative features of society, Rousseau goes against the good manners and civility that are generally seen as restraining the savage features of man, as he feels that there is nothing to restrain in natural man, and civility only makes men compare themselves to one another.As for Thomas Paines The Rights of Man, he justifies the principles of modern republican governments. He attacks the notion of monarchy and privilege and argues that each generation has the right to establish its own system of government. No nation can legally be ruled by a hereditary monarchy because government is for the living and not the dead. No generation has the right to esta blish a government binding on future generations. He argues that humankind can reach its full potential under republican governments which would allow individuals to live free of privilege and caste. To sum it all up, Thomas Hobbes, Jean-Jacques Rousseau, and Thomas Paine put forward an idea of how the government sprung from inequality and lack of a central world authority.For Hobbes, an peremptory monarchial government ruled by one person only, is necessary to fulfill the societys need for order and the regulation of its people so that society can avoid from spiraling into anarchy. As for Rousseau, a government having biases towards the rich while deceiving the poor was created so that the insecurities of the people would force them in order to continue inequality which make them dependent on the government, giving it more power. Lastly, for Paine, a representative and democratic government is formed to protect the peoples rights to be protected and to safeguard them from the thr eat of chaos, allowing the people to create an environment where they can mature and achieve their potential.Despite the differences in some parts of their ideologies such as the sources of inequality and the roles of the government, a single goal is presentedthat is, for the creation of a concept of government in order to prevent the society from turning back to its nature of anarchism. While Hobbes one-man rule could lead to abuse of power, his intention is for this monarchial type of government to administer order and self-preservation in the society. As for Rousseau, the maintenance of an inequality between social classes assures the stabilization of finite resources and society itself. Lastly, for Paine, his ideal world of a representative-democratic government lies on the belief that environmental influences create the individual and that a likeable form of government can bring about human happiness. Putting them together, their main objective can be viewed as the organizatio n and harmonization of society so as to push it towards progression.References(n.d.). Rights of Man. Retrieved December 20, 2012, from http//www.enotes.com/rights-man salem/rights-manSparkNotes Editors. (n.d.). SparkNote on Discourse on Inequality. Retrieved December 20, 2012, from http//www.sparknotes.com/philosophy/inequality/

Orientation day at Seneca

This article is based on students who participated in Seneca College Orientation. It was a long success because everyone learned so much most their courses and everyone had fun. This orientation was for new students attending Seneca College, there atomic number 18 different departments of studies that were introduced. First, the president of Seneca College, David Jones refreshingd students by his speech then after that, the president had every student in every department come up on the stage so that he could personally welcome everyone and give the students a pin.Along with some of the board members, everyone shook hands and personally greeted each other a welcome aboard greeting. Everyone was amazed by the start of this formal ceremony. After the welcome greeting, the president introduced Ms. Erin Grant, Alumni and alike the Valedictorian of her school year. She was thrilled to be called on to greet the new students. She shared some quotes to foster the new students and told t hem not to worry about negative things because hard work is the key to success. It created a decorous atmosphere among the students, because it took some pressure off their shoulders.After she delivered her lovely speech, the president and the board members left the gymnasium date the students remained in their seats waiting for their department of study to be called down so that they can gibe with the faculty members so that they can discuss further details about the courses with their future students. The faculty discussed what the courses were about and what the expectations on each of them were. They gave out a lot of informations to help the students know what they are entering into. The countersign ended and everyone enjoyed a delicious lunch on Seneca grounds. It was an unforgettable Orientation day at Seneca.

Personal and Criminological Theory

The human brain is very unique and it functions in many ways, giving individuals the former to think, speak, plan, and imagine. However, when individuals commit crimes, the wretched justice frame and scientist study that behavior to learn the causes of crime. The needs and motivations of individuals who engage in crime differ establish on biological origins, psychological, or socially induced. History has shown that by applying possibleness it allows researchers to discern why individuals react the way they do to certain conditions. In this paper, I will condone what I believe argon the occurrences of crimes and why people commit them.I will also class the variables associated with crime, identify reasons concerning the circumstances and explain techniques used when evaluating the criminal behavior. When situations change it becomes an issue for individuals to adjust. Society categorizes and divided individuals based on race, gender, family, and ultimately the arrive of econo mical resources they have. Society usually divides people into speeding class, the middle-class, the working class, and the underclass. The amount of accumulated wealth or property that an individual owns determines the assignment to any class or group.The upper class consists of wellspring to do families that maintain an enormous amount of financial and social resources, but the scurvy consist of people living in poverty. Depending upon the opportunities available to individuals can affect the individuals chances in life. Crime occurs and it includes acts such as murder, rape assault, and theft. Individuals commit crime for several reasons, cordial disorders, income, education, and economic components, or a combination of them all. The disproportion of goods for all members of nine negates the defined goals and the norms that regulate the means to achieve the American dream.Goals are the valued purposes and interest that America holds as real objectives for all members within its society. When disruption occurs and the social norms and conditions in which those norms no longer control the activity of society members the anomie and strain conjecture becomes a factor in why individuals commit crime (Williams & McShane, 2009, p. 77). The anomie and strain theory suggest that when there is a disjunction between means and goals individuals frustration and sense of sleaziness result from experiencing socially structured incapacities (Williams & McShane, 2009, p. 80).For example, divergence by social class or racial discrimination in education and employment makes doorway to institutionalized means of achieving success difficult. I think this is a good theory because of the variables considered to uphold the theory are individuals environment, education, family, peers, structure, media, drugs, and alcohol. The blocked opportunities to maintain social status creates new opportunities for crime. Individuals, who believe that there is an injustice in the cond itions to which they are to live within will not respect the norms of society and will correct to a way of self indulgence.If the measurement of success is through material gain, it is only natural for people to keep abreast the American Dream by trying to accumulate property and economic prosperity. However, unequal access to legitimate economic structures is a source of fierce strain, rage, and anger for Americans. Criminal behavior is a response from those whom society has failed to provide legitimate access to achieving that American Dream (Williams & McShane, 2009, p. 82). A variety of methods are available to the criminal justice researcher.Each method has strengths and weaknesses. However, in the hypothetical study concerning the unequal access to opportunities to pursue the American Dream, surveying individuals is an appropriate method for collecting data. With quantitative and qualitative studies in the form of questionnaires and interviews as well as field research and historical research this can help in drawing conclusions concerning the disproportionate of opportunities available to society and reasons fag criminal behavior (Kraska & Neuman, 2008, p. 2). In conclusion, when individuals commit crimes, the criminal justice system and scientist study that behavior to learn the causes of crime. Society categorizes and divided individuals based on race, gender, family, and ultimately the amount of economic resources they have. The amount of accumulated wealth or property that an individual owns determines the assignment to any class or group. Depending upon the opportunities available to individuals can affect the individuals chances in life.Individuals commit crime for several reasons, mental disorders, income, education, and economic factors, or a combination of them all. The anomie and strain theory suggest that when there is a disjunction between means and goals individuals frustration and sense of injustice result from experiencing socially st ructured incapacities (Williams & McShane, 2009, p. 80). I think this is a good theory because of the variables considered to uphold the theory are individuals environment, education, family, peers, structure, media, drugs, and alcohol.Individuals, who believe that there is an injustice in the conditions to which they are to live within will not respect the norms of society and will conform to a way of self indulgence. However, unequal access to legitimate economic structures is a source of intense strain, rage, and anger for Americans. With quantitative and qualitative studies this can help in drawing conclusions concerning the disproportionate of opportunities available to the Americans and reasons behind criminal behavior.

Surf Exel

? HINDUSTAN jimmy LIMITEDA Project Report On SURF EXCEL ? 2. TABLE OF CONTENTS ACKNOWLEDGEMENTS INTRODUCTION EXECUTIVE compendium INDUSTRY outline COMPANY OVERVIEW FINANCIAL STATEMENT ANALYSIS MARKETING MIX OF ORISSA COMPETITORS ANALYSIS PROJECT1 o OBJECTIVES o SCOPE AND LIMITATIONS OF THE STUDY o RESEARCH METHODOLOGY o DATA ANALYSIS CONSUMER ANALYSIS o CONCLUSIONS APPENDIX o CONSUMERS QUESTIONNAIRE o DETAILED FSA ? 3. EXECUTIVE SUMMARYThe project assigned to us was to study the business and merchandising bore, competitorsin business and customers of browse transcend, for Orissa commercialize.For this a questionnaire wasprepargond for the consumers. A sample of 53 consumers was surveyed. The respondentswere interviewed in securities industryplace places crosswise Bhubaneswar. After the analysis we came to the conclusion that the breaker transcend enjoys a space in the top2 positions in shuffling rec altogether of the consumer. This is a positive sign for HLL. The resear ch in give c atomic number 18 manner testifys that the commercialize sh atomic number 18 of channel-surf travel by in Orissas purifying securities industry isapproximately 66%. Also, from the survey it is evident that stag name, scathe andcleansing work on ar ternary of the most main(prenominal) attri yetes a consumer looks for in every purifying brand. channel-surf Excel enjoys a corking study with the consumers with respect toall these attri scarcelyes. An some otherwise thing that we say in this survey was that Television is the most used info gather upded player for the consumer. The withdraw communication recall however, is reallypoor among the consumer. This could be attributed to the ever increasing advertisementclutter, crossways all media. Thus, HLL should consider looking for other media dealoutdoors. It was in like manner noted that all everyplace 50% of the consumers who used graze Excel, would purchase requires whose size was 1/2 1 kg and di d not prefer purchasing the 200gm pack.We triedto find out the originator as to why this practice occurred, but to no avail. HLL shouldconsider promoting this pack size in some way, or phase it out fol humblely. Thus, we preserve conclude that pasture Excel enjoys excellent customer reviews. It assumes specialrecognition for its ranking(a) cleansing action, the convenient packs it comes in, the ease it ? 4. is uncommitted with, and the fact that its price is at par with similar cross shipway availcapable in themarket today. OBJECTIVES OF THE STUDY 1.The primary heading of the study was to at a lower placestand the customers of surfboard Excel ( type/ quality/ their decision making style/ reference work of information that they use for collecting information regarding ledgeman Excel) 2. The study was also aimed to understand the business and merchandise practice of graze Excel and the marketing mix used by HLL for Surf Excel. 3. other important objective of the study was to understand the competitors of Surf Excel. 4. Efforts were also made to evaluate the financial strength and market capabilities of the p bent firm, Hindustan open up expressage. ? 5.INDIAN FMCG INDUSTRYBackgroundThe FMCG area has been the cornerst adept of the Indian economy. Though, the sector has been in existence for quite a long time, it began totake shape completely during the last fifty-odd courses. The sector touches everyaspect of human life, from looks to hygiene to palate. Perhaps, delimit anindustry whose sphere is so vast is not easy. Generally, FMCG refers to consumer non-durable goods required for day-to-dayor frequent use. The sector touches every aspect of human life, from looksto hygiene to palate. Perhaps, defining an industry whose scope is so vastis not easy.The FMCG sector consists in the first place of sub incisions viz. personal care, oral care andhousehold carrefours. This idler be further sub-divided into oral care, soaps and detersives,He alth and Hygiene crossways, beauty cosmetics, hair care wares, removede and dairy-basedproducts, cigarettes, and tea and beverages. Major Indian consumer product companies (like Britannia, P&G, HLL, etc. ) produce a verystrong presence through with(predicate) with(predicate) their strong brands. Diversified portfolios, wide disseminationne twainrks and overcome economies of these companies deter rising players from entering.Brand legality, therefore, is an extremely important factor in FMCG industry. One of theother most critical factors is the ability to build, develop, and maintain a robuststatistical dissemination networkPost-reforms, the industrys addition has been hinging approximately a burgeoning clownishpopulation which has witnessed important rise in disposable incomes. Consequently, therural markets score been witnessing intense competition in nearly all the consumerproduct classes. Another tenableness which has led to rise in this trend is the satu b alancen inurban markets in most of the consumer non-durable goods categories.This has led to theindustry players scrambling for great rural penet balancen as a future growth vehicle, thearea which accounts for 70% of the total Indian householdsSo far, it has been a chequered graph for the MNCs direct in the Indian FMCGindustry. Domestic companies are only beginning to sword their presence felt in theindustry. It has taken tremendous consumer insight and market savviness for the FMCGplayers to grasp where they are today. But, the break floor seems to have scarcely at a time begun forthe players as the majority of the rural populace are yet to bring down access to the items of dailyusage like tooth chivalrices, soaps and shampoos. 6. Value for m whizyalways since the global recession of 1991-94, which hit consumer elapseing hard, value-for-money has become the buzzword for FMCG companies globally. These FMCGcompanies embarked upon major restructuring and cost rationalizat ion exercises asbusiness continued to become fiercely competitive. Several packaging innovations werealso resorted to. India was no different. There was a paradigm shift towards value-for-money products and, to some extent, towards the rural market. What Nirma did all these age suddenly became the buzzword for many FMCG players. cost cuts became privationful to keep the market overlap from shrinking. Sometimes, thecuts touched ridiculous trains. Economic recession hit the urban pockets naughtily and forcedcompanies to train their guns on rural India, which was witnessing a major substitute in itsaspiration and lifestyles and even had an income that translated into increasing volumes. Indias agrarian economy is fundamentally strong. Rural India accounts for as much as 70per centime of the nations population. That means rural India buttocks bring in the much neededvolumes and help FMCG companies to log in volume-driven growth.Companies such asHLL, Colgate and Britannia who a lready had a strong rural counsel, stepped up the gasfurther. HLL unleashed its Operation Bharat. Britannia pushed its Tiger biscuits toevery nook and corner of the country, era Colgate went roughly wooing the rural massesby pop the questioning low-priced products in convenient packaging. Those who could not do it ontheir feature went piggyback on somebody else. P&G, whose distribution is bangingly urban,chose to leverage Maricos retail execute. P&G and Smith Kline Beecham, nonetheless, are entertaining cases.With humiliated productportfolios like theirs, they have been able to achieve what others could not and provedthat what you need is a good product, marketed effectively and sold at the by rights priceOf late, an interesting trend in the Indian FMCG sector has been brand acquisitions. Thisrepresents a growing awareness among the FMCG players are talking today more andmore of product fits while discussing brand acquisitions. It is not retributive acquiringanything and everything as it was in the pastRural marketing has become the latest marketing mantra of most FMCG majors.True,rural India is vast with unlimited opportunities. All waiting to be tapped by FMCGs. Notsurprising that the Indian FMCG sector is active putting in place a parallel rural marketing strategy. Among the FMCG majors, Hindustan open, Marico Industries, Colgate-Palmolive and Britannia Industries are only a fewer of the FMCG majors who have beengung-ho closely rural marketing. With reason. Certainly, rural marketing holds the pick out to success of FMCG companies, which aredesperate to find ways out to gain deeper penetration. Not just the rural population isnumerically large, it is growing richer by the day.Of late, there has been a phenomenalimprovement in rural incomes and rural spending source. ? 7. FMCG sector performance in last decadeThe fmcg sector in India showed a constant decline in the last decade. What started as 20-25% growth rate in year 1994-96, had reach ed a ostracize growth rate of -2. 8% in Q104. The FMCG sector is now mockingly called SMCG or slow moving consumer goods. ? 8. Source India Today R K Swamy BBDO Guide to Urban commercializes*Soap, Shampoo, Nail Polish, wash Powder, Footwear, Tea, Coffee, Cigarettes, Electric Bulbs.Rank Towns States Average Monthly Spending on FMCG intersection points* in Rs. 1 Chandigarh Chandigarh 3,418 2 Greater Maharashtra 2,955 Mumbai 3 Chennai Tamil Nadu 2,886 4 Ahmedabad Gujarat 2,869 5 Vadodara Gujarat 2,816 6 Pune Maharashtra 2,804 7 Coimbatore Tamil Nadu 2,684 8 Ludhiana Punjab 2,674 9 Faridabad Haryana 2,596 10 Hyderabad Andhra 2,533 Pradesh ? 9. The textile veneration Market In India detergentsThe Indian fabric wash market consists of synthetic detergents (comprising bars, powderand liquids) and oil-based washables soaps. The detergent powder market is further part based on price and form.It is characterised by brands from a plethora ofregional and local players competing with the issue marketers primarily in the low-priced and mid-priced constituentsThe synthetic detergent market gouge be classified into bounteousness (Surf, Ariel), mid-price(Rin, Wheel) and common segments (Nirma), which account for 15%, 40% and 45% ofthe total market, respectively. The product category is fairly mount and is reign bytwo players, HLL and Nirma. Nirma created a revolution in the market by pioneering theconcept of low-cost detergents. underwayly, the market is highly segmented with thedifferential between the reward and popular segments at close 7X. GrowthAlthough the per capita consumption of detergents in India (2. 7 kg pa) is alike(p) tosome countries like Indonesia, China and Thailand (around 2 kg pa), it is lower than inothers such as Malaysia, Philippines (3. 7 kg) and the USA (10 kg). senior high consumerawareness and penetration levels go forth enable the market to grow at an average 8-10% perannum with slightly higher growth in the rural areas. Higher p enetration stems frompopularity of low-cost detergents.Hence, besides increase in per capita consumption,there is tremendous scope for prodment up the value chain. tether Fabricare Brands Available In IndiaSurf ExcelSurf comes from the stables of Hindustan pry, the largest player in this market with anoffering at each price point. Surf was the offset printing detergent powder brand to be launched in thecountry. It created the detergent powder category and introduced the concept of bucketwash to housewives hitherto used to washing clothes with laundry soap bars. Surf has, since,become generic to detergent market.Consumers refer to all their powders as Surf, evencompetitive powders are called Surf e. g. Nirma Surf ? 10. Selling over 60,000 tonnes per year, Surf is the market leader in the concentrate andpremium powder price segments Surf has always been the first to recognize and respond totrends. Whether it was through Surf with Easy Wash- a low lather flesh, in 1994 or Surfwith Wash Boosters (1995) that forgetd go around clean even in hard water. The brand SurfExcel now has triad variants Surf Excel Quickwash, Surf Excel Blue and Surf Excel automatic rifle which address different laundry needs but each offers stain removal as the divulgebenefit.In 2003, recognising changing consumer purchase patterns, it once again redefined value forthe consumers by introducing the concept of monthly packs. Sensitive to the increasing concerns on environmental pollution and water scarcity problemsacross the country, it brought to the consumer Surf Excel Quickwash. This low lathervariant is the first eco-friendly detergent in the country, as it uses almost half the water otherdetergents require. Surf has innovated beyond the grassroots product into other aspects of laundry.Understandingthe need for easy-to-store packaging, tubs and jars were introduced. In order to helpconsumers dose correctly for the best possible clean, measuring scoops were built into thepacks. For convenience seekers, washing has been simplified with the ready to dose packs ofSurf Excel Automatic. conformable innovation addressing ever-evolving consumer needs has earned the brand aplace in the messages of consumers. Surf was rated in the top cristal Most Trusted brands in TheEconomic Times survey in 2003WheelWheel is Indias number one detergent brand.Launched in 1987, it cleans effectivelywith lesser effort, making a laborious chore like washing light and easy. Moreover,Wheel does not cut off hands or harm clothes like some other detergents, which containa high percentage of soda. Ever since its relaunch in 2001, with the new positioning of best clean with less effort,Wheel has been growing strongly. Research showed that consumers seek a solution to heavyduty laundry, like bed sheets and curtains. Developing on this insight, wheel sought to ? 11. liminate the trouble of tough malicious gossip or heavy-duty laundry. Mass market consumers havewelcomed the solution, mak ing it the number one. Nirma a home-grown product that revolutionized the detergent market in India, andsuccessfully challenged large multinational leaders in the process. The Nirma success story isa result of its founder, Dr. Karsanbhai Patels relentless focus on quality, cost and value. Thedistribution model, sustained line extensions and umbrella branding strategies have enhancedthe brands cost leadership.Today, the lodges two brands, Nirma and Nima, aredistributed through more thantwo million retail outlets across the country, generating gross gross gross revenue in excess of Rs. 26,000 million. In the fabric care category, Nirma has three productsfor the lower-end market. The Nirma Yellow Washing Powder is available in pack sizes of30 gms, 200 gms, calciferol gms and 1 kg, and is class-conscious as the largest wandering single detergentbrand in the world. Nirma is one of the large st dole outing single detergent brands in the world.Nirma products aresold through two milli on retailers and reach 400 million. This brand had been ranked as the Most astray distributed detergent powder brand in India as per AllIndia Census of Retail Outlets carried out in 435 urban towns by the AIMS (Asian InformationMarketing & Social) Research agency Brand Equity The Economic Times, March 11, 1997. As perthe ORG-MARG Rural Consumer Panel December 1998 survey, Nirma brand has been ranked ashighest in terms of penetration in washing powder category BT Rural Market Watch, double-deckeriness Today, June22, 1999. ? 12.World-over Ariel epitomizes stain removal and removes even the toughest stains in the firstwash. Introduced in India in 1991, Ariel has continuously led other detergents in productinnovation. For example, it pioneered the use of enzyme technology for superior and safestain-removing office, longer-lasting perfume, and the P&G proprietary cleaningtechnology, which cleans everyday soil and diddly from garments. everywhere the years, the brand hasenjoyed endo rsement from celebrities such as the fountain actress and now MP Shabana Azmiand lakhs of other homemakers in India. surge is the Worlds Oldest and Most Trusted Billion Dollar Detergent and is the marketleader in 23 Countries around the world. course provides outstanding tweed on whiteclothes and provides excellent everyday cleaning for colored clothes too. Launched in Indiain mid-2000, the brand has gained popularity among Indian housewives, thanks to itssuperior whitening, creative advertising starring Shekhar Suman, and its Value-for-Moneyproposition. Both Tide and Ariel are meg dollar brands in sales for P&G globally. Now Large Packs of Tide and Ariel Worlds Best Detergents at Rs. 3/- and Rs. 50/- only Mumbai, India March 02, 2004 Procter & stake today announced that it has decrease the prices of Ariel and Tide bags (large packs) by 20-50%, while maintaining the superior quality. The superior quality ? kg pack of Tide now cleans a familys one-month laundry in just Rs. 2 3/-, while a ? kg pack of Ariel cleans a familys one-month laundry in just Rs. 50/-. This epochal price reduction will now allow many more Indian consumers to start out the world-class experience of outstanding whiteness from Tide and superior stain-removal from Ariel in every wash.The new prices of Ariel and Tide are as follows ? 13. Old Price New Price Old Price New Price Pack Size P&Gs move to slash Ariel Ariel Tide Tide detergent prices is 200gm Rs. 30 Rs. 22 Rs. 20 Rs. 10 ostensibly to get more consumers to 500gm Rs. 70 Rs. 50 Rs. 43 Rs. 23 experience its brands 1kg Rs. 135 Rs. 99 Rs. 85 Rs. 46 but the industry sees it primarily as a 1. 5kg Rs. 180 Rs. 145 N. A* N. A move to wrest the proceeds from HLL 2kg N. A N. A Rs. 160 Rs. 88 in a sluggish market. The prices of sachets (20gm) of Ariel and Tide remain unchanged. N. A = Not Available in that size. Six months ago, P&G reduced the prices of Ariel and Tide sachets by 50% in order toencourage a larger number of consumers to e xperience their superior quality. The bettervalue offer on sachets received such an overwhelming, positive response from consumersacross India that P&G was encouraged to offer the overwhelming value to Ariel and Tide bagusers as well, thereby make the worlds best detergents accessible to a larger number ofIndian consumers.P&G talked to over 3,000 consumers across the length and slitth of India and observedover 25,000 washing sessions in consumers homes. Consumers believed in the superiorquality of Ariel and Tide but indicated pricing as a constraint in using Ariel and Tide on aregular basis. The drop in prices by the P&G has forced HLL to also react in a similar way thus shrinkingthe overall lucre margins for the theme. While the immediate impact of any price slash isbound to result in more volumes and thereby shares for the companies concerned,improving margins in the business remains doubtful. 14. smart set OverviewHindustan Lever Limited (HLL) is Indias largest fast moving c onsumer goods conjunction, with leadership in Home & Personal Care Products and Foods & Beverages. HLLs brands, spread across 20 distinct consumer categories, touch the lives of two out of 1888 Sunlight soapthree Indians. They endow the company with a home of combined volumes of most 4 introduced inmillion tonnes and sales of Rs. 10,000 crores. India. The leading business magazine, Forbes Global, has rated Hindustan Lever as the bestconsumer household products company.Far easterly Economic Review has rated HLL asIndias most respected company. Asiamoney has rated HLL as one of Indias best managedcompanies. Leading national publications, like The Economic Times, Business World, and 1895Business Today have also rated HLL as one of Indias most respected companies and the Lifebuoy soapnumber one in Market Value Added and EVA. launchedHLL is Indias largest marketer of Soaps, Detergents and Home Care products. It has thecountrys largest Personal Products business, leading in Shampoos, Sk in Care Products,Colour Cosmetics and Deodorants.HLL is also the market leader in Tea, ProcessedCoffee, brand Wheat Flour, Tomato Products, and scrap cream, Soups, Jams and 1902Squashes. Pears soap introduced inHLL is also one of the countrys biggest exporters and has been recognized as a golden IndiaSuper Star Trading House by the Government of India it is a net foreign exchange earner. HLL is Indias largest exporter of brand fast moving consumer goods. The companysExports portfolio includes HLLs brands of Soaps and Detergents, Personal Products,Home Care Products, Tea and Coffee.HLL is also driving exports in chosen areas whereIndia has a competitive advantage Marine Products, Basmati Rice, Castor Oil and its 1903 Brooke BondDerivatives. It is Indias largest exporter of Marine products, and one of the largest global Red tick off teaplayers in castor. launched. Market leading brandsHLLs brands have become household names. The companys strategy is to concentrate itsresources on 35 national power brands, and 10 other brands which are strong in certain 1905regions. The top five brands together account for sales of over Rs. 3000 crores.Each of Lux flakesthese mega brands has a likely scale of Rs. 1000 crores in the foreseeable future. introducedSome of the big brands in Soaps and Detergents are Lifebuoy, Lux, Liril, Hamam,,Pears,Rexona & Dove, (all soaps), Surf Excel, Surf, Rin, & Wheel (all detergents). HLLalso markets the brawn and Domex range of Home Care Products. 1913In the Personal Products business, HLLs Hair Care franchises are Clinic, Sunsilk and Lux Vim scouringshampoos. In Oral Care, the portfolio comprises Close-up and Pepsodent toothpastes and powdertoothbrushes.In Skin Care, HLL markets Fair & pin-up Skin Cream and Lotion, the introduced. largest selling Skin Care Product in India a brand developed in India, it is now exported toover 30 countries. It has been extended as an Ayurvedic cream, an under-eye cream, soap ? 15. and talc, in line wit h the strategy to take brands across relevant categories. The other majorSkin Carefranchises are Ponds, Vaseline, Lakme and Pears. In Colour Cosmetics, HLLmarkets the Lakme and Elle-18 ranges.In Deodorants, the key brands are Rexona, Axe, 1930Denim and Ponds, while the Talc brands are Ponds, Liril, Fair & Lovely, Vaseline and Unilever isLifebuoy. Axe and Denim are HLLs franchises for Mens toiletries. formed on January 1HLL has recently launched Lever Ayush Ayurvedic Health & Personal Care Products. Health Care is among the new businesses HLL has chosen to enter. The product rangecomprises Cough Naashak Syrup, forefrontache Naashak Roll-on, Dandruff NaashakShampoo, Hair Rakshak Oil and organic structure Rakshak Soap.The purity of the Ayurvedic 1931ingredients in Lever Ayush is endorsed by the renowned Arya Vaidya Pharmacy (AVP) of HindustanCoimbatore. It is for the first time that rigorous examen procedures of the pharmaceutical Vanaspatiindustry have been applied to Ayurvedic pro ducts. That is why the brand seal is Truth of ManufacturingAyurveda Proof of Science. Company registered on November 27HLL has started franchised Lakme Beauty Salons, offering standardised aids, in linewith the strategy to add a service symmetry to relevant brands.The company has set up the Hindustan Lever Network, a direct selling channel, offering 1932the Lever Home range of Laundry and Home Care products and the Aviance Personal Vanaspati manufactureCare range. starts at SewriThe company has also begun an e-tailing service, called Sangam, which can home-deliveron order by phone or through the Net, a diverse range of almost 5000 mark andunbrand products. The service is now available in select areas of Mumbai and NaviMumbai, besides Thane. 1939HLL is one of the worlds largest mail boat Tea marketers.Its Tea brands Taj Mahal, Red tend ReachLabel, Taaza, are among the top brands in the country it also markets Lipton Ice Tea. Factory purchasedHLL and Pepsi have formed an allia nce to distribute a full range of tea and java and soft outrightbeverages through vending machines HLL already has a base of around 15000 suchmachines. The coffee business comprises Bru newsbreak Coffee and Deluxe Green LabelRoast & Ground Coffee. The Kissan and Knorr Foods range comprises Spreads & Jams, Biscuit Sticks, Soups, 1943 Personal ProductsSquashes, Tomato Ketchup, Sauces, Puree, and Cooking Aids.Popular Foods, like Wheat manufactureFlour and Iodized Edible Salt, under the Knorr Annapurna brand name, have met with begins in India atremarkable success. The range has been expanded with ready-to-eat 10-second chapatis. Garden ReachThe innovative offerings are changing consumer habits into using processed, hygienic, Factoryhealthy and convenient products. The Kwality-Walls Ice Cream range comprises exotic Sundaes, Viennetta Desserts,popular appetite segment products like Max, Cornetto and Feast, and Cornetto Ripple 1947Softies.Ponds Cold Cream launched. Max was extended in 2001 as clams confectioneries, because children are a key consumersegment in confectioneries too. This is among the new businesses HLL has chosen toenter. ? 16. HLL has acquired young Food Industries (India) Limited, entering the bread market. Modern Foods was the first Public Sector Under fetching to be disinvested. Besides 1959 Surf launched. upgrading the existing Modern products, HLL has launched new products, among thembiscuits. HLL is liberating its brands from their existing category mindset.Historically, brandsoriginated and stayed within a category format. HLL sees its Power Brands as world able tooccupy a unique position in the consumers mind and therefore beingness able to stretch intoother product formats and categories. All such initiatives have had a promising start, and 1964there are more to come. Etah dairy set up, Anik ghee launched savage feeds plant atThe Distribution network Ghaziabad Sunsilk shampooHLLs distribution network is recognised as one of its key s trengths that which helps launched. each out its products across the length and breadth of this vast country. The need for astrong distribution network is imperative, since HLLs corporate purpose is to meet theeveryday needs of peck everywhere. HLLs products, manufactured across the country, the operations involve over 2,000 1969 Rin bar launchedsuppliers and associates. HLLs distribution network, comprising about 7,000redistribution stockiest about one million retail outlets, directly covers the entire urbanpopulation, and about 250 million rural consumers.In addition to the ongoing commitment to the traditional grocery trade, HLL is building aspecial relationship with the small but fast emerging new-fangled trade. HLLs scale enables itto provide superior customer service including daily servicing, improving their rangeavailability whilst reducing inventories. HLL is using the fortune of interfacing more 1975 Close-updirectly with consumers in this retail environment through es pecially designed toothpastecommunication and promotions. This is building traffic into the stores while yielding high launched.. growth for the business.An IT-powered musical arrangement has been implemented to tot up stocks to redistribution stockistson a continuous replenishment basis. The objective is to catalyse HLLs growth by 1978ensuring that the right product is available at the right place in right quantities, in the most Fair & Lovely skin creamcost-effective manner. For this, stockists have been connected with the company through launched.. an Internet-based network, called RSNet, for online interaction on orders, dispatches,information sharing and monitoring. RS Net covers about 80% of the companys turnover. 930 Unilever is formed onHLLs foray into Network Marketing January 1 1988 Launch ofAs per the market surveys conducted it is expected that the consumer market in India is Lipton Taaza expenditure 13000 crores per year and in few years the network market will captur e 500 crores as tea. per market surveys, considering the potential Hindustan Lever has launched HindustanLever Network (HLN), a unique Network Marketing opportunity . ? 17. 1991The Network marketing concept Surf Ultra detergent launched. In the normal marketing system, the maker supplies the products through themiddle men such as brokers, wholesalers and retailers.These middle-men add theirestablishment costs and their own margin of profit or commission on the price. Thisincreases the price by approximately 45 per cent. The consumer therefore gets the productat atleast a 45 per cent markup from the manufacturers price. 1993 Tata Oil Mills CompanyIn network marketing, these middle men are eliminated. A person is invited to join and (TOMCO),become a member (also called Consultant) of the network marketing company. This merges with theperson in turn invites many more people to join under him to form a group.These group companymembers, in turn invite their acquaintance to join under th em. This group is made tosteadily grow and it can grow into thousands or tens of thousands, in the course of time,depending upon the enthusiasm with which the Consultant imitate the sponsorship of newConsultants. 1994 HLL introducesThese Consultants make purchases of the products of the marketing company for self use Walls. and also for sale to other consumers. For their loyalty in regularly purchasing the products,the marketing co. gives discounts, handsome bonuses, rewards and special incentives.Each consultant in the group gets his shares of benefits depending upon the purchasesmade by him and also by the number of the consultant under him (called downlines). This 1995is called network marketing. HLL enters brandedThe growth in the beginning will be slow, from 1 to 2 to 4. but later on it will be rapid, staples1000 to 2000 to 4000.. and so on. devoted below are the approx. benefits received, business with saltdepending upon your group strength and on the assumption that each co nsultant haspurchased goods worth Rs 1,000/- in the month. The benefits will be more for higherpurchases and bigger groups.Group Strength Benefits 1996 HLL introduces253Nos(1+12+60+180) Rs17,938/- branded atta Surf Excel launched1531Nos(1+18+216+1296) Rs64,558/-3061Nos(1+36+432+2592) Rs 1,28,818/- 2002 HLL enters Ayurvedic health & beauty centre. ? 18. Shakti-Hll Rural ProjectShakti is HLLs rural initiative, which targets smallvillages with population of less than 2000 people or less. It seeks to empower underprivileged rural women byproviding income-generating opportunities, health andhygiene education through the Shakti Vani programme,and creating access to relevant information through theiShakti community portal.Started in 2001, Shakti has already been extended to about50,000 villages in 12 recites Andhra Pradesh, Karnataka,Gujarat, Madhya Pradesh, Tamil Nadu, Chattisgarh, UttarPradesh, Orissa, Punjab, Rajasthan, Maharashtra and WestBengal. The respective state governments and several Project Shakti By using self-helpNGOs are actively involved in the initiative. Shakti already groups, HLL has pushed its productshas about 13,000 women entrepreneurs in its fold. A typical down into the country. Into villagesShakti entrepreneur earns a sustainable income of about where people cannot spend more thanRs. 00 -Rs. 1,000 per month, which is double their average Rs 20-25 on FMCGs in a monthhousehold income. Project Shakti will expand the distribution cover bottom-up, the rural project will be top-down. Thiswill be a huge competitive advantage for Lever. The costs of expanding into these villages will betoo high for most companies, which do not have a portfolio spanning teas to detergents,In recent past Hindustan lever took some major decisions to remodel its business. These decisionshad major impact on the how distribution of lever products is managed in the market.Hindustan lever took the decision to simplify the company it merged all the different business units into two large divisions home and personal care (HPC) and foods and beverages (F&B). This gaveeach division The advantage is that these divisions get us enormous scale, The companydecided to whittle its brands down from 110 to 35, over the next three years. This is known asHLLs Power Brand strategy. To identify these power brands, managers were asked to consider their growth potential, profitdelivery and the size of the opportunity.And to ensure that Lever would not lose sales, it wasdecided to migrate these brand users to the designated power brands. For one, the drastic slimmingdown of the brand portfolio which threw up huge problems in execution is now over. HLL is already combining its scale advantage to offer retailers a bigger basket of products and betterservice. Instead of different sales teams servicing the same retailer, the company has integrated bothHPC and Foods portfolios for modern trade chains like Margin Free. Once again, its large portfolio ? 19. ange helps Lever t o use the power of customer relationships to corner greater shelf space and adisproportionately higher share of the branded segment. Modern trade, it reckons, is already growing at 15-20 per cent and will continue that way for a longtime. By bulking up the businesses, it is possible for Lever to service these modern trade outlets on adaily business. As a result, these retailers do not have to maintain high inventory levels. HINDUSTAN LEVER LIMITED BOARD OF DIRECTORSMr. Harish Manwani Non Executive chairmanMr. M. K. Sharma infirmity ChairmanMr. Arun Adhikari Managing Director (Home & Personal Care)Mr.S. Ravindranathan Managing Director (Foods)Mr. D. Sundaram Finance & IT DirectorMr. A. Narayan DirectorMr. V. Narayan DirectorMr. D. S. Parekh DirectorMr. C. K. Prahlad Director ? 20. The CompetitorsThe Indian FMCG markets have witnessed some of the classic struggles involving HLL. Sofar Levers have been able to stand their ground but times are changing. HLLs response tothe latest chal lenges is being eagerly studied by the corporate India. In order to gain afoothold in Indian FMCG sector various domestic and MNC companies are using all kind ofschemes to woo customer from HLL.The major competitors of HLL areDetergents P&G, Nirma, Henkel SpicToothpaste Colgate-PalmoliveBeverages Rasna, Coca-Cola (Sun fill)Tea Tata teaCoffee NestleIce-creams AmulShampoo P&G, Garnier Procter & GambleP&G Home Products Limited is a 100% subsidiary of The Procter & Gamble Company,USA. P&G Home Products Limited is one of Indias fastest growing Fast Moving ConsumerGoods Companies that has in its portfolio P&Gs global brands such as Ariel and Tide in theFabric Care segment, and in the Hair Care segment Head & Shoulders worlds largestselling anti-dandruff shampoo Pantene worlds No. beauty shampoo and Rejoice AsiasNo. 1 shampoo. Fabric CareProcter & Gamble has two of its world-leading detergents Tide and Ariel, in India to caterto the main concerns of the Indian households. In India P&G has launched followingbrands Ariel Front-O-Mat Ariel 2 Fragrances Tide Detergent Tide BarHair CareIn India, P&Gs beauty care business comprises of Pantene, the worldslargest selling shampoo, Head & Shoulders, the worlds No. 1 Anti-dandruffshampoo and Rejoice Asias No. 1 Shampoo. Pantene Pro V Head & Shoulders Rejoice ? 1. Baby Care PampersIn India, P&G will continue to be a midget, in turnover terms, when compared to HindustanLever. The two P&G subsidiaries in India (P&G Hygiene and P&G Home Products) todaygenerate a combined turnover of about Rs 1,100 crore, just a tenth of Hindustan Leverssales. P&Gs distribution network is largely urban and has a reach of 0. 4 m outlets. In 1994, Godrej entered into a strategic alliance with P&G for inter alia toilet soap business,under which Godrej used to manufacture soaps, which were marketed by a joint venturecompany. thus far post marketing alliance with P&G, the company lost significant part ofits market share and subsequently the a rrangement was discontinued. Godrejs entiredistribution network was then taken over by P&G. THE Procter & Gamble -Gillette deal could result in the former getting a significant boostboth to its scale of operations and range of products in the Indian market. That Gillettesportfolio of shaving razors, gels, grooming products and toothbrushes has no overlap withthat of P&G in India (shampoos, detergents, feminine hygiene, cold medication) is apositive.The addition of Gillettes businesses could help P&G expand its portfolio andacquire a more protracted distribution network This may strengthen P&Gs hand in theongoing war for market share with Unilever arms in the Asian markets, particularly withHindustan Lever in India. NirmaNirma is one of the few names which is forthwith recognized as a true Indian brand, whichtook on mighty multinationals and rewrote the marketing rules to win the heart of princess,i. e. the consumer. It was way back in 60s and 70s, where the domestic detergent mark et had only premiumsegment, with very few players and was dominated by MNCs.It was 1969, when KarsanbhaiPatel started door-to-door selling of his detergent powder, priced at an astonishing Rs. 3 perkg, when the available cheapest brand in the market was Rs. 13 per kg. In a compact span,Nirma created an entirely new market segment in domestic marketplace, which is, eventuallythe largest consumer pocketand quickly emerged as dominating market player. Now, the year 2004 sees Nirmas annualsales touch 800,000 tones, making it one of the largest volume sales with a single brandname in the world.Looking at the FMCG synergies, Nirma stepped into toilet soapsrelatively late in 1990 butthis did not deter it to achieve a volume of 100,000 per annum. This makes Nirma thelargest detergent and the second largest toilet soap brand in India with market share of 38%and 20% respectively. SoapsIn 1992, sensing a strong need to expand the market through PenetrativePricing, Nirma entered this market wi th the launch of Nirma Bath Soap&Nirma Beauty Soap . In 1998 Nirma expanded its product line in the soap ? 22. ategory by introducing Nirma Lime Fresh & Nirma Rose. This brand had carved a nichein its segment by achieving leadership position just within two months of its launch. It isavailable in 100g and 150g pack sizes. Nirma entered the premium soap segment when itlaunched Nirma SandalDetergentsNirma launched Nirma Washing Powder in Indian market in year 1969, This productwas priced at almost one third to that of the competitor brands, resulting into instant trial bythe consumers. Presently Nirma has different variants in Indian market.Nirma washing powderNirma superNirma popularEdible SaltNirma has also entered the Food market in the recent past with launch of Nirma Shudh. ? 23. FINANCIAL ANALYSIS ratio outline ? 24. All figures in Rs cr Particulars Dec 2001 Dec 2002 Dec 2003 Dec 2004 bargains 12420. 71 10641. 15 11919. 04 11594. 65 Total assets 7089. 06 7761. 01 8104. 68 7820 . 34 Net worth 3170. 86 3713. 91 2189. 22 2148. 67 Borrowings 102. 55 86. 23 1715. 18 1604. 25 Capital Employed 3273. 41 3800 3904 3752 Debtors 1254. 38 1169. 49 1228. 55 793. 56 PAT 1576. 47 1757. 59 1687. 3 1208. 4 PBDIT 2211. 63 2461. 31 2462. 92 1875. 63 Depreciation 202. 63 192. 65 199. 99 195. 68 PBIT 2009 2269 2262. 9 1680Current liabilities & Provisions 3709. 17 3841. 92 4084. 71 3919. 71 Current assets 3505 3510 3610 3132 Current assets -Inventories 2201 2146 2120 1574 Long term Debt 102. 55 86. 23 1715. 18 1604. 25 spare-time activity 12. 31 12. 86 69. 12 136. 25 Total Purchases 6077. 97 5389. 04 5438 5413. 77 attainability Ratios Operating wampum Margin (%) 16. 17 21. 30 19 14. 5 Net Profit Margin Ratio (%) 12. 68 16. 51 14. 15 10. 42 ROTA (%) 28. 3 29. 23 27. 92 21. 5 ROCE 61. 37 59. 72 58 44. 77 Return on Equity (%) 49. 71 47. 3 77 56. 23 Liquidity Ratios Current ratio 0. 944 0. 91 0. 88 0. 79 Quick Ratio 0. 59 0. 55 0. 52 0. 40 Absolute Cash Ratio 0. 25 0. 254 0. 21 8 0. 20 Solvency Ratios Debt Equity Ratio . 032 0. 023 0. 78 0. 75 involvement Coverage Ratio 163. 2 176 32. 74 12. 33 Efficiency Ratios Debtor Days 38. 85 40. 11 37. 62 25 Creditor days 135. 31 149. 2 131. 62 145. 23 Total assets turnover ratio 1. 75 1. 37 1. 47 1. 48 ? 25. Interpretation Profitability RatiosHLL earns 14. paisa on every Re. 1 of Sale before Interest and Taxes It ultimately makes 10. 42paisa on every Re. 1 of Sale after Interest and Taxes. It is discernible that Hindustan Lever Ltd. has not been able to increase its Operating Profit marginconstantly over the years. We can see that the operating margin has decreased considerable in thelast year. This is mainly due to the fact that the interest cost of HLL has almost doubled from 69. 12crores to 136. 25 crores. Moreover the companys operating expenses have increased by almost 75% in the year 2004.The efficiency has certainly decreased over the last few years mainly owing tohigh operating expenses , increased intere st effect and high indirect taxes. The Net Profit Marginhas also decreased by 17. 8 % in 2004 as compared to 2001. This is mainly due to the decrease insales by Rs. 826 cr. HLL generates 21. 5% Return on Total Assets (ROTA) that it employs in its operations in theyear ended 2004. ROTA has decreased in the last year mainly due to the fact that its profit marginhas decreased. It could be ecause of high competition as a result of which profits have decreasedand the total assets of the company have increased. As we can see that the Return on Capital Employed (ROCE) for Hindustan lever Limited hasdecreased considerably during the last year mainly due to lower profit margins. The company isearning a return of 44. 77% on the funds busy by it. Though the ROCE has seen aconsiderable change, even now the company is getting good enough returns and can catch up with goodenough dividends to the shareholders as we saw the case in the year 2004 where the rate ofdividend was 250%.The Return on E quity Ratio (ROE) states how much profit a company earned in parityto total meat of shareholders equity on the balance sheet of the company. Here, we see that theROE of HLL has increased in comparison to the year 2001 but this cant be concluded as afavourable situation for the company as looking at the figures in detail we can notice that there hasbeen a near to 30% decrease in ROE in comparison to the year 2003 , also we do see that the PATof the company has fallen by about 23% and the shareholders equity has also decreased by 32% incomparison to the year 2004. But Even now an ROE of about 56. 3% is considered to be verygood. Liquidity RatiosIt can be seen from the above table that the Current Ratio for all the years is less than 1. Thissignifies that HLL has short term liabilities greater than the short term assets. It implies that thecompany would have problems in managing its short term liabilities and fluidness requirements. The company might have to resort to financing its short term liquidity requirements by long termsources of finance. We can observe that the current assets have decreased by 13 % and at the same time the currentliabilities have decreased by just 4 % in the last year.The reason is that since the company is ? 26. using long term sources of finance to fund its short term obligations therefore the interest burdenhas increased and as a result the cash balance has decreased . Other receivables have also decreasedby more than 66% leading to a fall in current assets. Solvency RatiosThe company was highly unleveraged in the years 2001 and 2002. It was risky as the company hadinvested a huge amount of its own funds as compared to debt. However in the last 2 years thecompany has changed its policy and is leveraging the advantage of debt along with equity.Thoughthe debt equity ratio of 0. 75 is not good enough as compared to industry norms of 21 but thecompany is moving towards a favourable debt equity mix. It has realized the importance of t radingon equity . The Company has increased its debt burden by 1470% in the last 4 yearsInterest Coverage Ratio(ICR) basically signifies the ability of a firm to service its interest burdenthrough the profits generated . In the initial years when the firm had not employed debt its interestburden was very low.As a result the Interest Coverage ratio is very high, gradually the companyhas employed more debt and as a result of which the interest burden has increased significantly. Moreover, due to high competition and operating inefficiency the earnings of the company havedeclined. As a result the ICR has reduced from 163. 2 to 12. 33 in the last 4 years. However an ICRof 12. 33 is still very impressive which reflects the companys ability to pay interests on loanseasily. This is a good indicator to the various financial institutions providing long term sources offinance to HLL. Efficiency RatiosHere, we see that the Debtors Days for the company is less than the Creditor Days of thecompa ny. From this we can interpret that the company has a favorable cash position as it is makingits payments long after receiving the dues from the debtors. Here, from the Asset Turnover Ratiowe can know how efficiently the firm is using its assets, the ratio for which is pretty low for thecompany. The Creditor Days as well as Debtor Days both show negative growth which reflectsnegatively on the companys financials. The Asset Turnover Ratio also shows negative growthwhich is also not a good sign for the company.Thus, looking into these figures we can analyze thatthe efficiency level of the company has gone down vis-a-vis the previous years and hence thecompany needs to look urgently into these matters so as to improve the efficiency of the company. O DU-PONT RATIO ANALYSISThe Du Pont ratio analysis is a combination of financial ratios in a series in order to assess theinvestment returns of the company. It combines the financial ratios of both the Income Statementas well as the Balance Sheet in order to assess either the Return on Equity or the Return onInvestment.One of the Plus points of this method is that it provides a clear understanding of howthe company generates its return. This analysis provides an insight into the importance of assetturnover as well as sales to overall return. This formula shows the relationship of profit margin andturnover how these two complement each other. ? 27. The Du Pont ratio divides the Return on equity into three part Net Profit Margin, total assetturnover, and the companys use of leverage referred to as Equity multiplier also. DU-PONT CHART FOR HLL FOR THE YEAR 2004 RETURN ON EQUITY =PAT/NETWORTH 56. 3% Equity NET realize TOTAL ASSET Multiplier MARGIN TURNOVER =TA/NW =PAT/NET saleS =SALES/TA =10. 42% =1. 48 =3. 64% RETURN ON ASSETS ROA=PAT/TA =15. 44%Growth Trends Over The Years Particulars Dec-01 Dec-02 Dec-03 Dec-04 ? 28. Sales 12420. 71 10641. 15 11919. 04 11594. 65Expenditure 10627 8690 9941 10076Change InSales (%) -14. 33 12 -2. 7Change InExpenditure(%) -18. 22 14. 39 1. 35Change inPBIT (%) 12. 94 -0. 26 -25. 75Change inPAT (%) 11. 48 -3. 99 -28. 38Change inBorrowings(%) -15. 91 1889 6. 46Change InInterest (%) 4. 46 437. 48 97. 12 ? 29. COMMON MARKETING MIX FOR alone MARKETS 1.Product consists of brand, quality, appearance, 2. Price Structure consists of prices, dealers and consumers discounts. 3. furtheranceal activities consist of advertising, media. 4. Placement (distribution) system consists of dealers, distributors, retailers and overall logistics. MARKETING MIX FOR boorish MARKET 1. Product 2. Price 3. Promotion 4. Placement system 5. Packaging-Reason for putting it separately is because symbols and packaging becomes very important when literacy levels are very low. 6. Retailer is the one who gives all information about brand cream and consumer feedback. 7.Education is very important for rural sector-eg. Project Shakti 8. Empowerment Example-Project Shakti and Self Help Groups. PRO DUCTSurf derives its name from Surfactant the basic ingredient of a detergent. After 44 years, Surf brand has been upgraded and made more modern and contemporary. Surf has changed the entire brand is now called Surf Excel. Continuousimprovements in the formulation of the product and introduction of new ingredients e. g. enzymes, along with new perfumes have ensured that the product meets the evolvingconsumer needs. The brand Surf Excel now has three variants Surf Excel Quickwash, ? 0. Surf Excel Blue and Surf Excel Automatic which address different laundry needs buteach offers stain removal as the key benefit. Surf Excel Blue Target segment Economic segment. Attributes-Removes stains without fading colours. Sizes avalaible 25gm, 200gm, 500gm, 750gm, 1. 5kg, 3kgSurf Excel Quickwash (also called as Surf Excel Easy wash)(Hitherto known as just Surf Excel) Target segment Superior quality for washing machine users. Sizes available- 20gm, 20gm, 500gm, 1kg, 1. 5kg Attributes-Stain remov alSurf Excel Automatic Target segment-Washing machine owners Top and front loading machines .Sizes available- 600gm, 1kg Attributes Low lather detergent, anti corrosive, stain removal, ensures longer life of fabric. PRICELatest price war between detergent majors, Hindustan Lever (HLL), Proctor and GambleIndia (P&G), Nirma and Henkel-Spic India (HSIL) has proved that price in the marketingmix is very critical for growth of HLL products. If Surf excel prices were reduced to match the price cuts of their competitor (P&G),simultaneously they had to ramp up spending on advertising and promotions to increaseconsumption and penetration in the market and deem values of premium brand ? 1. PROMOTIONSSurf communication has been pleasant, soothing and gentle, Surf Excel has had adistinctively bold tongue in cheek style of communication. Promotions for Surf Excelare more often than not tactical weapons. Gift is offered to the consumer to gain short patronage or to engineer enhanced consumption . Choice of various promotionalgifts is usually governed by what can be bought cheap rather than any brand-relatedfactors. Surf Excel has always been sensitive enough to recognise the change in the consumerchoice dynamics.In some of their promotions, they have pampered influencersconsidering that brand choice in family products is a collective exercise. Various promotions being used for Surf are Scholarship offer Rs five lakh scholarship. Extremely rare and well-informed use of the marketing budget. Beauty of this promotion is in its design. An innovative and clever way of underscoringthe core portend of Surf Excel stain removal Visual depiction in the ad is student-focussed there are no mothers or daughters to be seen in the ad.Most of the people inthe ad are in their teens. The protagonist himself is unless in his teens. This can be anindication towards changing consumer algorithm. This was backed by Win with Stains campaign one of the largest campaigns taken upby Surf exce l. This promotion is happening in Orissa markets which is aimed at offering consumers achance to win prizes as well as give students an opportunity to pursue further studies. Theaim of the whole campaign is to drive home the point that stains are good in life and oneis not to be scared to get themselves dirty.They are not only doing road shows,advertisements but branded horoscope columns in keeping with the theme of luck andfortune. They have roped in former South African cricketer Jonty Rhodes to participate in theWin with stains washathon to wash the largest stain in town with kids of the NGO -Magic Bus 1 bucket free with 3kg of Surf Excel has really managed to increase sales revenue of Surf excel. This is the most successful consumer promotion till date in Orissa market. Surf KidStains a roadshow that invites consumers to get first-hand experience of using Surf.Surf has taken communication beyond mass media advertising and involved consumersin the brands anticipate in the rea l world. It has touched consumers life through schoolcontact and in-store programmes. Road shows have helped to go to the consumers anddemonstrate superior performance vis-a-vis competition. ? 32. PLACEMENT SYSTEMIn Orissa, HLL has around 100 dealers and distributors. But HLL is into the exercise ofreducing number of channels in Orissa by increasing territory size of each dealer. HLL Distribution in Rural MarketsHLL has come up with new distribution channels to cater to rural markets.For long-term benefits, HLL has mounted an initiative, Project Streamline, to furtherincrease its rural reach with the help of rural sub-stockists. It has already appointed 6000such sub-stockists. As a result, the distribution network directly covers about 50,000villages, reaching about 250 million consumers. The pivot of Streamline is the RuralDistributor (RD), who has 15-20 rural sub-stockists attached to him. Each of these sub-stockists is located in a rural market. The sub-stockists then performs th e role of drivingdistribution in neighboring villages using unconventional means of sustain such astractor, bullock cart,etc.The Streamline system has extended direct HLL reach in these markets to about 37% ofIndias rural population from 25% in 1995 and the number of HLL brands and SKUsstocked by village retailers has gone up significantly. ? 33. PACKAGINGPackaging plays a key role in rural markets. Since customers are daily wage earners andthey dont have monthly incomes like the urban consumers have, so Surf excel ispackaged in smaller sizes of 20gm so that they can afford given their kind of incomestreams. EDUCATIONSince vast majority of rural India lacks even basic education levels and modern outlook,HLL is training their new sellers to basic education levels.This is example of ProjectShakti which is explained in detail later. EMPOWERMENTHLL runs the program of Self-Help Groups (SHG), which lick like direct-to-homedistributors. The mo del consists of groups of (15-20) villagers below the poverty line(Rs. 750 per month) taking micro-credit from banks, and using that to buy HLL products,which they will then directly sell to consumersPrices of products 20gm 25gm 200gm 500gm 600gm 750gm 1kg 1. 5kg 3 kgSurf Quickwash 2 NA 23 53 NA NA 103 153 NASurf Automatic NA NA NA NA 90 NA 145 NA NASurf Blue NA 2 16 40 NA 53 NA 103 220 ? 34.Range of productsIf we divide detergent industry into three tiers Premium at Rs. 80-140 per kg Mid-price at Rs. 30-50 per kg Popular at Rs. 15-25 per kgPopular segment accounts for 80% of the detergent industry. HLL leads in detergent powders withPremium Surf ExcelMid price SunlightPopular Rin, WheelDealers and distributorsRetail Distributor MarginsExample of various distributor discounts on sale of these variants. Sale of 200gm Surf Excel Dealer rebate of 8%Sale of 20 gm Surf Excel Dealer Discount of 12%Wholesale Distributor MarginsThey get a standard discount of 1. % on sale of any variantStrategies in Orissa market 1. Shakti Pr ogramWith a twin objective of creating income-generating capabilities for underprivilegedrural women and improving their rural living standard through health and hygieneawareness, the Project Shakti is implemented in Orissa. Housewives and old ladies are targeted for this project. They are trained and given basiceducation to sell products. All products which are priced below Rs 5 are sold through thisproject. The sellers which are all ladies are paid margins of 3% on their sale of products.Now out of a total of 15,454 Shakti Entrepreneurs across India, Orissa hasover 928 (6%)Shakti Entrepreneurs spread across 22 districts. They are operating through Self Help Groups (SHGs) which is makes women direct-to-home distributors of HLL. Partnerships with several NCOs and support from stategovernments have been key enablers for the programme. Currently women entrepenuersare earning an average income of Rs. 7007- per month, doubling their household income. For the SHG women, it provides a sta ble, sustainable source of income.For villagers, thischannel has become a source of genuine and correctly priced products. ? 35. SALES TREND IN BHUBANESHWARBig Bazaar ,BhubaneshwarSales figures of Surf excel and is competitors Surf Ariel TideJuly sales 1,21,000 26,246 71,672July sold quantity 1787 pieces 341 pieces 1996 pieces ? 36. MARKET SHARE OF SURF Bhubaneswar, 20% Orissa, 35% Surf Excel Surf Blue Orissa, 65% Bhubaneswar, 80%SALE OF SURF EXCEL ON BASIS OF DIFERENT SIZES 10% 25% 20gm 200gm 500gm others(1kg,1. 5kg) 15%50%SALE OF SURF BLUE ON BASIS OF DIFERENT SIZES 7% 13% 20% 500gm 750gm5% 1kg 3kg 55% others(25gm,200gm) ? 37.PERCENTAGE SHARE OF SURF IN PREMIUM DETERGENTSMARKET 25% Surf Excel Ariel 75%SALE OF SURF EXCEL ON BASIS OF SEASONSCustomers reduce their washing frequency in rains, so the sales are drastically affected. Sale of detergents is strongly affected by seasonal changes as shown in the map below. 12% 18% Summers Winters Rains 70% ? 38. COMPETITOR ANALYSIS. In this section we compare HLL with its competitors, viz. Proctor and Gamble (Ariel, Tide) and Nirma Ltd (Nirma washing powder). We now compare these products and the companies on the various counts. Market Share The per capita consumption of detergents in India is 2. kg per annum. The synthetic detergent market can be classified into three main categories Premium (Surf and Ariel) 15% of total market Mid price (Rin and Wheel) 40% of total market Popular (Nirma) 45% of total market. Product Comparison HLL (market share 40%, including all 3 segments) manufactures Surf Excel in three avatars, Surf Excel Blue, Surf Excel Automatic and Surf Excel Quick wash. The USP of Surf Excel is that it reduces soaking time and water usage by 50%. It also contains a lesser amount of bleach than Ariel or Tide. P&G (market share 12%, including all 3 segments) produces both Ariel and Tide.Ariel is produced in three types, Ariel Front-o-mat, Ariel Spring Clean and Ariel Fresh Clean. The USP here would be removal of tough stains while taking care of cloth quality and imparting a fresh fragrance to it. Tide detergent improves washing experience while imparting a lingering lemon fragrance to clothes. Nirma (market share 30% of popular segment) comes in three variants, Nirma washing powder, Super Nirma washing powder and Nirma popular washing powder. Its USP would be low prices and the value for money it gives to the customer. Pricing Comparison We now compare the prices for these brands.The price of each product and its variant is shown in the table b 20gm 200gm 500gm 600gm 750gm 1kg 1. 5kg 2kg 3 kg 4kg (30sachets)Surf Quick wash 2 23 53 NA NA 103 153 NA NA NASurf Automatic NA NA NA 90 NA 145 NA NA NA NASurf Blue NA 16 40 NA 53 NA 102 NA 220 NAAriel 2 22 50 NA NA 99 145 NA NA NATide 1 10 23 NA NA 46 NA 88 NA 186 ? 39. Place comparisonHLLs distribution system is one of its key strengths. The delivers its finished productsto various Carrying and promotion Agents, via whom the goods reac h differentwholesalers. From here the goods are delivered to either rural or urban retailers, viawhom they reach the consumers.HLLs scale enables it to provide superior customer service including daily servicing,improving their range availability whilst reducing inventories. An IT-powered system hasbeen implemented to interpret stocks to redistribution stockists on a continuousreplenishment basis. The objective is to catalyze HLLs growth by ensuring that the rightproduct is available at the right place in right quantities, in the most cost-effectivemanner. For this, stockists have been connected with the company through an Internet-based network, called RSNet, for online interaction.As far as distribution to rural areas is concerned, they use a process called ProjectStreamline, wherein there exist networks of rural sub-stockists, who operate in the ruralareas itself. 20-30 sub-stockists come under a rural distributor (RD). The sub-stockists arethen responsible for distributing the products in rural areas. Nirma Limited markets its products through its fully owned subsidiary Nirma ConsumerCare Limited (NCCL), which was incepted in 1985. NCCL then resells the productsthrough Nirma and Nima. Nirma pioneered the concept of flat distribution network.Nirma Consumer Care Limited operates with two parallel distribution networks. TheNIRMA brand is marketed through the first network, which consists of about 450exclusive distributors. It is one of the lowest cost FMCG distribution channels of thecountry. The principle channel for Nirmas Products is the lowest cost system in Indiawith in built flexibility and speedy distribution. All NIRMA and NIMA range of productshave a retail reach of over two million retail outlets and more than 40 million loyalconsumers spread all over the country.The Company has been successful in establishingan extremely good urban as well as rural presence through the two distribution channels. The distribution channels have played a significant role in making Nirma a householdname. The efficient network has made Nirma Washing Powder the brand with highestpenetration in its product category. The network is well equipped to meet the demands ofthe loyal consumers of the Company across the country. ? 40. Promotion comparisonHLL. Advertising. Surf excel, synonymous with the catch line, Surf Excel hai naa was the first nationaldetergent brand on television.It has indulged in numerous advertisement campaignswhich have gained a lot of popularity. Surf Excel and Lalitaji ad also was in news for a long time. Slice of life situations havegenerated high levels of interest in the communication. Using consumer chat in the formof testimonials has helped in building credibility in the brand. She was a hard-headed bargain-hunting housewife who demanded value for money andnot just cheap price. Consumers faith in Surf was restored, and not just because sheoffered a rational argument. The real reason Lalitaji was believed was because she wa strusted y the Indian housewife to get her a good bargain. We showed her bargainingwith the vegetable vendor about good tomatoes and bad tomatoes Sasti cheez orachchi cheez me farak hota hai, bhai saab. This advertisement reversed a declining brand share trend. The currents advertisement on television shows noted actor and human rights activistShabana Azmi (who did promote Ariel once upon a time), walking with two buckets ofwater and encouraging a multitude of people to do the same. It basically plays on SurfExcels strength to perform with lesser amounts of water.It thus underlines th