Chapter 1 Advertising on Hindustan Unilever 1.1
Total Page：16
File Type：pdf, Size：1020Kb
CHAPTER 1 ADVERTISING ON HINDUSTAN UNILEVER 1.1 INTRODUCTION Advertising is the greatest art form of the 20th the century. It may be described as a science of arresting human intelligence long enough to getmoney from it. It stimulates debate and sometimes controversy. It has a powerful effect on the human consciousness as it is around us on television,radio, cinemas, newspapers and magazines. The way we dress, talk and behave sends a message to other people. It is about manipulating publicopinion and getting a message across to an audience so that they will behavein a particular way.The advertising industry has been in existence since the end of the17th thecentury when newssheets carried printed advertisements for productsand information. Merchants returning from voyages overseas needed togenerate markets for the products they imported and so they had to advertise.By the end of the 19th the century, advertising was big business. Advertisementsdominated the newspapers, posters were commonplace and spawned a wholeart form. But the new communication technology gave the industry its biggest boost. Modern advertising exploits every medium of communication. We tend to think of advertisements in terms of themainstream media but we also have posters, billboards, point of saledisplays, direct selling and cold calling by phone and fax, the internet whichtaps into worldwide audiences.If you work in advertising , you will for sure be part of an influential band of people who can change public attitudes and behaviour.The heart of this industry lies in the advertising agencies. The largeones are multinationals with in such far flung places as Beijing and BuenosAires. If you work in a small agency, you may be expected to doeverything, including account management, client liaison, conceptdevelopment, creative work. In a larger one, job roles will be morestructured. You will have a specific role and a greater chance of more formalcareer development. Advertising agencies vary in the services they offer.The most familiar names are full service agencies but there are also othercompanies that specialize in media services or focus on particular areas ofadvertising, such as recruitment or business to business advertising.Business needs to advertise so that we should learn of the existence of different products.Advertising is aimed at conveying information to potentialcustomers and clients.Advertising is used to persuade the public to buy.At the lowest level people need food, shelter, warmth and sex. Then, people begin to think about personal possessions and finally we move on to egocentricity.The ultimate need is for fulfillment. This would come when we haveall that the advertisers say we so desperately need. For most of us it seemsthat that day will never come!Sometimes advertisements are misleading. Advertisers shouldn’tmake untrue statements about their products but they so often do it. Theycreate a demand which would not otherwise exist.Advertising goes far beyond T.V. 1.2 Objective Of The Study 1. To Study the Vision and Marketing strategy of Hindustan Unilever LIMITED. 2. To Study the introduction and History of HUL. 3. To Study the Advertising Strategy of HUL. 1.3 Importance Of The Study Advertising is about striking the right note on those chords of the brain that most often are in sync with the heart. When this happens, a need is generated and brain directs to buy, be it a product or a service or an idea. Indian advertising too follows this rule but here age-old advertising trends are still thriving along with the latest innovative trends. According to American Marketing Association ―Advertising is any paid form, non-personal presentation of ideas, products and services by an identified sponsor. According to J.J. Burnett ―Advertising is the non-personal communication of marketing related information to a target audience, usually paid for by the advertiser and delivered through mass media in order to achieve the specific objectives of the sponsor. In fact the seeming growth of many advertising industries is instructive of the fact that, complex and uncertain business environment has lead many organizations to device multifaceted approaches to market their products and services through various techniques of advertisements. Moreover, the essence of being in business by any business outfits is to produce for sales and make good profits. Therefore, the hallmarks of remaining in business as a profit oriented organization is to generate enough sales from its product or services not only to cover operating cost but also to sustain the future of the organization. Indeed, for many organizations, sales estimates are the starting point in budgeting or profit planning (Ayanwale, Alimi, and Ayanbimipe, 2005).Despite moderate global growth in advertising spending, fast-moving consumer goods (FMCG) companies continued to invest—and invest more—according to Nielsen’s quarterly Global AdView Pulse report shown in figure-1. The largest sector by ad spend market share, with roughly a quarter of all dollars spent (25.1%), FMCG saw a six percent increase in ad spend in 2012 through September. FMCG was joined by telecom, media and automotive as the top sectors for year-over-year ad growth. Media is the vehicle that is used for the delivery of the message. Some important tools of advertisement are newspapers, magazines, radio, television, direct mail and mail order, outdoor display and transportation. 1.4 Research Methodology The main purpose of the present study is ―To know the Role of Advertisement on the overall growth of the company. Data Collection: data was collected through secondary sources like books , newpaper , magzines , journal and internet. 1.5 Limitations of the study This study has certain limitations annual reports of advertising expenses of HUL, Changing pattern in advertising of different products of HUL, etc. CHAPTER 2 2.1 Vision of Hindustan Unilever limited Unilever products touch the lives of over 2 billion people every day ± whether that's through feeling great because they've got shiny hair and a brilliant smile, keeping their homes fresh and clean, or by enjoying a great cup of tea, satisfyingmeal or healthy snack. A c lear direction The four pillars of our vision set out the long term direction for the company ± where we want to go and how we are going to get there: 1. We work to create a better future every day 2.We help people feel good, look good and get more out of life with brands andservices that are good for them and good for others. 3.We will inspire people to take small everyday actions that can add up to a bigdifference for the world. We will develop new ways of doing business that will allow us to double the sizeof our company while reducing our environmental impact. We've always believedin the power of our brands to improve the quality of people s lives and in doing theright thing. As our business grows, so do our responsibilities. We recognise thatglobal challenges such as climate change concern us all. Considering the wider impact of our actions is embedded in our values and is a fundamental part of who we are. 2.2 Purpose & principles of HUL Our corporate purpose states that to succeed requires "the highest standards of corporate behaviour towards everyone we work with, the communities we touch,and the environment on which we have an impact." Always working with integrity Conducting our operations with integrity and with respect for the many people,organisations and environments our business touches has always been at the heartof our corporate responsibility. Positive impact We aim to make a positive impact in many ways: through our brands, our commercial operations and relationships, through voluntary contributions, andthrough the various other ways in which we engage with society. Continuous commitment We're also committed to continuously improving the way we manage our environmental impacts and are working towards our longer-term goal of developing a sustainable business. Setting out our aspirations Our corporate purpose sets out our aspirations in running our business. It'sunderpinned by our code of business Principles which describes the operationalstandards that everyone at Unilever follows, wherever they are in the world. Thecode also supports our approach to governance and corporate responsibility. Workingwith others We want to work with suppliers who have values similar to our own and work tothe same standards we do. Our Business partner code, aligned to our own Code of business principles, comprises ten principles covering business integrity andresponsibilities relating to employees, consumers and the environment. 2.3 MARKETING STRATEGY OF HINDUSTAN UNILEVERLIMITED HULS NEW GROWTH STRATEGY: After having fought a bitter price battle for market share with its rivals, HindustanUnilever Ltd (HUL), Indian subsidiary of the Anglo- Dutch consumer goodscompany Unilever Plc, is now working on a new growth strategy for its laundry business. Price cut or hike is not a long-term growth strategy. Pricing, in fact, is now passe,´ insists Sudhanshu Vats, category head, home care. Our strategy for growth, now is focused on product innovation, new consumer and retail trends andaggressive marketing and promotions,´ he said.We have done key innovations across the product portfolio and it is working for us,´ says Vats. We successfully migrated from RinSupreme to Surf Excel and Wheel Smart Srimati²which was rolled out in 2006 is also on the right track.´HUL's market share in the laundry segment grew to around 37.8% in the quarter ended June from 35.5% in the same period last year, according the market researchfirm ACNielsen. However, this time, the increase was not at the expense of pricewar with its multinational rival Procter & Gamble Co. P&G also gained 0.5 percentage points, up to a 7.6% share. Nirma Ltd, the Ahmedabad- basedmanufacturer, however, saw its market share dip by 1.7% percentage points to13.5%.Wheel, a value brand that, according to Vats contributes around 50% of HUL'slaundry segment revenues, increased its market share by 2 percentage points in thesame period, with a total share of about 18%.According to ACNielsen, the laundry industry in India was worth Rs7,908 crore in2006 and rose 8.4% over 2005.