A Project Report

A PROJECT REPORTON

ANALYSING THE COMPETITOR FACTOR AND BOOSTING UP SALES IN GURGAON REGION

A Project undertaken atHindustan Unilever Limited

Plot No. B, Block No. A, South City-I,Delhi – Jaipur Highway, Gurgaon.

A PROJECT FORPARTIAL FULFILMENT

FOR AWARD OF DEEGRE OF MASTER OF BUSINESS MANAGEMENT

Submitted By:Nitin Sharma

MBA 2009-2011Roll No. –RS1903B30

Analyzing the competitor factor and boosting up sales in gurgaon region 1

TABLE OF CONTENTS

1. STUDENT CERTIFICATE2. ACKNOWLEDGEMENT3. PREFACE4. EXECUTIVE SUMMARY5. INTRODUCTION TO INDUSTRY6. COMPANY PROFILE7. COMPETITOR PRODUCTS8. OBJECTIVE OF SUMMER TRAINING9. RESEARCH METHODOLOGY10. SWOT ANALYSIS11. BUSINESS OPPORTUNITY12. BIBLIOGRAPHY13. APPENDIX ( QUESTIONNAIRE)


ACKNOWLEDGEMENT

On the successful and satisfying completion of this project, I would like to share the immense joy in my heart with the others who have contributed to the making of this project by acknowledging them and I set forth to thank all the individuals directly or indirectly associated with it.

At the outset, I would like to thank MR. Vishwas, faculty, LSM,LPU who has been a great influence in shaping this project and during my efforts to define the scope and frame of the project. His continual appraisal of the progress of the project and also the insight into the subject he has given, were a constant source of strength during my work.

I whole heartly thank Mr. Aneet Mishra, Sales Executive, HUL-OOH and Mr. Shiv Mohan Bharadwaj, Territory Sales Officer, HUL-OOH who not only guided me in the making of the project but also gave me the in-depth knowledge about the sales branch of marketing.

I have benefited a lot from the constructive criticism and suggestions given to me by my colleagues with whom I discussed the project. I would also like to extend my gratitude to all the faculty and lab staff for indirectly helping me to complete this project.

Nitin SharmaLSM 2009-2011


CERTIFICATE

This is to certify that the report titled, “Analyzing The Competitor Factor And Boosting Up Sales In Gurgaon Region” submitted by Mr. Nitin Sharma, Roll Number RS1903B30, for the partial fulfillment of the requirements PGDM embodies the work done by him during the summer internship at Hindustan Unilever Ltd. under the supervision of Mr. Vishwas, faculty LSM and Mr. Shiv Mohan Bharadwaj, Territory Sales Officer, HUL.

It is further certified that I have not submitted this report to any other

organization for any other degree.

Mr. Vishwas Mr.Shiv Mohan BharadwajFaculty Mentor, LSM Industry Guide, Territory Sales Officer, HUL

Nitin SharmaStudent, LSM

Roll No- RS1903B30


PREFACE

This project is a part of the academic curriculum required for the fulfillment of the two years full time programme, pursuing Post Graduate Programme in “Birla Institute of Management Technology, Greater Noida. “

The project called Summer Internship Programme was undertaken at HINDUSTAN UNILEVER LIMITED. This project aimed at analyzing the Market potential of HUL vending products with respect to its competitors.

The study was carried out interacting closely with the sales team as well as distributors and dealers of GURGAON REGION. It also involved face to face interaction between different customers and corporate individuals.

The project has shown a significant light on the market share of different products under vending division (Lipton Tea, Bru coffee, Taj Mahal Tea Bags and some other products) with respect to its competitors like Nestle and Georgia.

Academically, the project provides a unique opportunity to have an exposure to real life business environment and to have an insight into the management intricacies, thus helping learning to be more purposeful and meaningful.


EXECUTIVE SUMMARY

This project gives a comprehensive idea about the SALES AND DISTRIBUTION MANAGEMENT of one of the most important business sector in India, the FAST MOVING CONSUMER DURABLES (FMCG) sector. The project was an endeavor to study the existing Vending Business and the Lipton’s presence in it. It also tries to analyze Lipton’s pricing, promotion, the distribution channel and alternatives. It aims at installation of vending machine in a company and has been executed in following three stages:

1. Cold calling2. Meeting respective administration/human resource heads & Negotiations3. Installation of Lipton vending machine

The task of installing a vending machine gets accomplice after several rounds of negotiations the respective company representative is made acquainted with the benefit his organization will get with Lipton. For this, a comprehensive cost-benefit has to be presented to him to convert the prospect into key account of HUL.

Once an order is placed, the Lipton crew along with the distributor installs the Lipton Vending Machine. Proper and regular technical support is provided for machine management. The Lipton team also trains for a smooth operation of the Lipton Vending Machine, which will help to maximize cuppage. The installation process is divided into 5 stages:

1) Pre-delivery inspection at the establishment by the manufacturer’s technician.2) Pre-installation Survey at the establishment by the installation crew. The crew shall check the

location for Water Source, Electrical Wiring and Fittings, Earthing, Tank and machine placement- accordingly an estimation of cost shall be provided.

3) All electrical, plumbing and water requirement are addressed before actual installation.4) After all the necessary checks are made, qualified technicians install the Lipton Vending

Machine.5) Training of the machine handling personnel to ensure smooth functioning and easy daily

maintenance of the Lipton Vending Machine.

Through the vending machines Hindustan Unilever Ltd. promotes the following three products:

Tea :


The packet tea market continued to be extremely competitive with national, regional and local players vying for increased share and volumes Prices of garden tea remained stable during the year, but have begun to firm up towards the later part of the year. The strategy of investing in building Brooke Bond as a mega brand to consolidate and strengthen the Company's leadership in the packet tea market helped Brooke Bond maintain its leadership during the year. In 2009, Taj Mahal and Lipton were successfully re-launched. Aggressive Brand building support behind Lipton Natural Care has established Natural Care as a significant variant within the portfolio. The focus on brand building, and innovation has helped the Company to sustain its leadership position in the overall category and exit the year with a growth momentum. Lipton continued to grow strongly in the Out-of-Home, Vending Channel through acquisition of some major regional and national clients, and by strong activation at key consumer points. The business continued to record sustained profitability through its focused brand portfolio and highly streamlined supply chain and cost management.

Coffee:

The Coffee business had another excellent year, led by strong growth in Instant Coffee. The strategy to strengthen the brand equity of Bru through clutter breaking and highly visible communication, coupled with world class activation led to significant share gain further consolidating its leadership position within the branded coffee market. Bru Cappuccino continues to help Bru recruit new consumers into its franchise and consolidate Bru's channel leadership particularly in Modern Trade. The Re. 1 and Rs. 3 low unit price packs continue to contribute significantly to the brand's growth and drive category expansion. The coffee category, particularly Instant Coffee, continued to be extremely competitive with national players securing growth in volumes and market share. Ground and Roasted coffee; predominantly confined to South India, faced competition from local and regional players. There is a perceptible trend of increasing number, of consumers migrating to instant coffee from roasted and ground coffee due to its inherent convenience.

Soups:


Knorr Soups enjoy a large share in the nascent and small soup market and held that position during 2008. A new range of international quality soups were introduced during the Foods business delivered a robust performance during 2008. This was on the back of a good 2007, reflecting sustained momentum in the Kissan, Knorr and Annapurna brands Kissan was relaunched with a new strategic positioning, improved packaging and a superior formulation, which significantly enhanced the quality of the product. Simultaneously, the Company focused on improving delivered freshness of processed foods to consumers with an improved supply year. Simultaneously, a new campaign to encourage soup consumption at various moments in the day has been well received by consumers and customers. This will help the business to build volumes through higher consumption.


INTRODUCTION TO INDUSTRY

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG), are products that have a quick turnover and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do for other products. Though the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large.

FMCG Products and Categories Personal Care, Oral Care, Hair Care, Skin Care, Personal Wash (soaps); Cosmetics and toiletries , deodorants, perfumes, feminine hygiene, paper products; Household care fabric wash including laundry soaps and synthetic detergents; household

cleaners, such as dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellents, metal polish and furniture polish.

Food and health beverages , branded flour, branded sugarcane, bakery products such as bread, biscuits, etc., milk and dairy products, beverages such as tea, coffee, juices, bottled water etc, snack food, chocolates, etc.

Frequently replaced electronic products , such as audio equipments, digital cameras, Laptops, CTVs; other electronic items such as Refrigerator, washing machines, etc. coming under the category of White Goods in FMCG;

Sector OutlookFMCG is the fourth largest sector in the Indian Economy with a total market size of Rs. 60,000 crores. FMCG sector generates 5% of total factory employment in the country and is creating employment for three million people, especially in small towns and rural India.

Analysis of FMCG Sector

Strengths:1. Low operational costs


http://www.naukrihub.com/india/fmcg/overview/white-goods/

http://www.naukrihub.com/india/fmcg/overview/white-goods/

http://www.naukrihub.com/india/fmcg/overview/washing-machines/

http://www.naukrihub.com/india/fmcg/overview/refrigerator/

http://www.naukrihub.com/india/fmcg/overview/color-televisions/

http://www.naukrihub.com/india/fmcg/overview/laptop/

http://www.naukrihub.com/india/fmcg/overview/audio-equipments/

http://www.naukrihub.com/india/fmcg/overview/consumer-electronics/

http://www.naukrihub.com/india/fmcg/overview/chocolate/

http://www.naukrihub.com/india/fmcg/overview/snacks/

http://www.naukrihub.com/india/fmcg/overview/bottled-water/

http://www.naukrihub.com/india/fmcg/overview/bottled-water/

http://www.naukrihub.com/india/fmcg/overview/fruit-juice/

http://www.naukrihub.com/india/fmcg/overview/coffee/

http://www.naukrihub.com/india/fmcg/overview/tea/

http://www.naukrihub.com/india/fmcg/overview/milk-dairy/

http://www.naukrihub.com/india/fmcg/overview/bakery-products/

http://www.naukrihub.com/india/fmcg/overview/bakery-products/

http://www.naukrihub.com/india/fmcg/overview/branded-sugar/

http://www.naukrihub.com/india/fmcg/overview/branded-flour/

http://www.naukrihub.com/india/fmcg/overview/food-beverages/

http://www.naukrihub.com/india/fmcg/overview/furniture-polish/

http://www.naukrihub.com/india/fmcg/overview/mosquito-repellents/

http://www.naukrihub.com/india/fmcg/overview/air-fresheners/

http://www.naukrihub.com/india/fmcg/overview/household-cleaners/

http://www.naukrihub.com/india/fmcg/overview/household-cleaners/

http://www.naukrihub.com/india/fmcg/overview/fabric-wash/

http://www.naukrihub.com/india/fmcg/overview/household-care/

http://www.naukrihub.com/india/fmcg/overview/paper-products/

http://www.naukrihub.com/india/fmcg/overview/feminine-hygene/

http://www.naukrihub.com/india/fmcg/overview/deodorants-perfumes/

http://www.naukrihub.com/india/fmcg/overview/cosmetics-toiletries/

http://www.naukrihub.com/india/fmcg/overview/soaps/

http://www.naukrihub.com/india/fmcg/overview/skin-care/

http://www.naukrihub.com/india/fmcg/overview/hair-care/

http://www.naukrihub.com/india/fmcg/overview/oral-care/

2. Presence of established distribution networks in both urban and rural areas3. Presence of well-known brands in FMCG sector

Weaknesses: 1. Lower scope of investing in technology and achieving economies of scale, especially in small sectors2. Low exports levels3. “Me-too” products, which illegally mimic the labels of the established brands. These products narrow the scope of FMCG products in rural and semi-urban market.

Opportunities: 1. Untapped rural market2. Rising income levels i.e. increase in purchasing power of consumers3. Large domestic market4. Export potential5. High consumer goods spending

Threats : 1. Removal of import restrictions resulting in replacing of domestic brands2. Slowdown in rural demand3. Tax and regulatory structure

Future ScenarioThe Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the economy. A well-established distribution network, intense competition between the organized and unorganized segments characterizes the sector. FMCG Sector is expected to grow by over 60% by 2010. That will translate into an annual growth of 10% over a 5-year period. It has been estimated that FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs 92,100 crores in 2010. Hair care, household care, male grooming, female hygiene, and the chocolates and confectionery categories are estimated to be the fastest growing segments.

Growth ProspectWith the presence of 16.5% of the world population in the villages of India, the Indian rural FMCG market is something no one can overlook. Increased focus on farm sector will boost rural incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure facilities will improve their supply chain. FMCG sector is also likely to benefit from growing demand in the market.

Because of the low per capita consumption for almost all the products in the country, FMCG companies have immense possibilities for growth. And if the companies are able to change the mindset of the consumers, i.e. if they are able to take the consumers to branded products and offer new generation products, they would be able to generate higher growth in the near future. It is expected that the rural income will rise in 2007, boosting purchasing power in the countryside.


However, the demand in urban areas would be the key growth driver over the long term. Also, increase in the urban population, along with increase in income levels and the availability of new categories, would help the urban areas maintain their position in terms of consumption. At present, urban India accounts for 66% of total FMCG consumption, with rural India accounting for the remaining 34%. However, rural India accounts for more than 40% consumption in major FMCG categories such as personal care, fabric care, and hot beverages. In urban areas, home and personal care category, including skin care, household care and feminine hygiene, will keep growing at relatively attractive rates. Within the foods segment, it is estimated that processed foods, bakery, and dairy are long-term growth categories in both rural and urban areas.

THE TOP 10 COMPANIES IN FMCG SECTOR

1. Hindustan Unilever Ltd.2. ITC (Indian Tobacco Company)3. Nestle India4. GCMMF ( AMUL)5. Dabur India6. Asian Paints (India)7. Cadbury Industries8. Britania Industries9. Procter and Gamble Hygine and Healthcare10. Marico Industries

Budget Implications on FMCG Sector

The Budget gives more focus on the agricultural/farm sector that will boost the rural income thus providing better growth prospects to the FMCG companies. With 12.2% of the world population living in the villages of India, the Indian rural FMCG market is something no one can overlook. Better infrastructure facilities will improve their supply chain. Also, with rising income and growing consumerism, FMCG sectors are likely to benefit. Growth potential for all the FMCG companies is huge as the per capita consumption of almost all products in the country is amongst the lowest in the world. Further, if these companies can change consumer's mindset and offer new generation products, they would be able to generate higher growth in the future


COMPANY PROFILE

Hindustan Unilever Limited, erstwhile Hindustan Lever Limited (also called HLL), headquartered in Mumbai, is India's largest consumer products company, formed in 1933 as Lever Brothers India Limited. Its 41,000 employees are headed by Mr.Harish Manwani, the non-executive chairman of the board. HUL is the market leader in Indian products such as tea, soaps, detergents, as its products have become daily household name in India. The Anglo-Dutch company Unilever owns a majority stake in Hindustan Unilever Limited.

A number of prominent companies came into the HUL fold as result of Unilever’s international acquisitions. These included Brooke Bond (1984), Lipton (1972) and Pond’s (1986). In 1993, Tata Oil Mills Company (TOMCO) merged with HUL. Five years later, HUL and yet another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Lever Limited. Subsequently in 1998, Lakme Limited sold its brands to HUL and divested its 50 per cent stake in the joint venture to the FMCG giant.

The leading business magazine, Forbes Global, has rated Hindustan Lever as the best consumer household products company. Far Eastern Economic Review has rated HUL as India’s most respected company. Asia money has rated HUL as one of India’s best managed companies.

BUSINESS OF THE COMPANYHUL’s business activities are divided into four broad areas:

Home & Personal Care• Personal Wash• Fabric Wash• Home Care• Oral Care


• Skin Care• Hair Care• Deodorants & Talcs• Color Cosmetics

Foods• Tea• Coffee • Branded Staples• Culinary Products• Ice Creams• Modern Foods ranges

New Ventures• Hindustan Lever Network• Ayush ayurvedic products & services• Sangam

Exports• HPC• Beverages• Marine Products• Rice• Castor

Brands

HUL s brands are household names across the country. They include Lifebuoy, Lux, Surf Excel, Rin, and Wheel, Fair & Lovely, and Ponds, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna and Kwality Wall’s.

LOCATIONHUL products are manufactured in 80 factories. The operations involve over 2,000 suppliers and associates. HUL s distribution network, comprising about 7,000 redistribution stockiest, directly covers the entire urban population, and about 250 million rural consumers.

Past Milestones


In the summer of 1888, visitors to the Kolkata harbor noticed crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers". With it began an era of marketing branded Fast Moving Consumer Goods (FMCG).

Soon after followed Lifebuoy in 1895; other famous brands like Pears, Lux and Vim. Vanaspati were launched in 1918 and the famous Dalda brand came to the market in 1937.

In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). These three companies merged to form HUL in November 1956; HUL offered 10% of its equity to the Indian public, being the first among the foreign subsidiaries to do so. Unilever now holds 51.55% equity in the company. The rest of the shareholding is distributed among about 380,000 individual shareholders and financial institutions.

The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the company had launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was formed. Brooke Bond joined the Unilever fold in 1984 through an international acquisition. The erstwhile Lipton's links with India were forged in 1898. Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited was incorporated.

Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986.Since the very early years, HUL has vigorously responded to the stimulus of economic growth. The growth process has been accompanied by judicious diversification, always in line with Indian opinions and aspirations.

The liberalization of the Indian economy, started in 1991, clearly marked an inflexion in HUL's and the Group's growth curve. Removal of the regulatory framework allowed the company to explore every single product and opportunity segment, without any constraints on production capacity.

Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the most visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills Company (TOMCO) merged with HUL, effective from April 1, 1993. In 1995, HUL and yet another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Lever Limited, to market Lakme's market-leading cosmetics and other appropriate products of both the companies. Subsequently in 1998, Lakme Limited sold its brands to HUL and divested its 50% stake in the joint venture to the company.

HUL formed a 50:50 partnership joint venture with the US-based Kimberly Clark Corporation in 1994. Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary Pads. HUL has also set up a subsidiary in Nepal, Nepal Lever Limited (NLL), and its factory represents the largest manufacturing investment in the Himalayan kingdom. The NLL factory manufactures HUL's products like Soaps, Detergents and Personal Products both for the domestic market and exports to India.

The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on the Foods and Beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with significant


interests in Instant Coffee. In 1993, it acquired the Kissan business from the UB Group and the Dollops Ice-cream business from Cadbury India.

As a measure of backward integration, Tea Estates and Doom Dooma, two plantation companies of Unilever, were merged with Brooke Bond. Then in July 1993, Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL), enabling greater focus and ensuring synergy in the traditional Beverages business. 1994 witnessed BBLIL launching the Wall's range of Frozen Desserts. By the end of the year, the company entered into a strategic alliance with the Kwality Ice-cream Group families and in 1995 the Milk food 100% Ice-cream marketing and distribution rights too were acquired.

Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998. The two companies had significant overlaps in Personal Products, Specialty Chemicals and Exports businesses, besides a common distribution system since 1993 for Personal Products. The two also had a common management pool and a technology base. The amalgamation was done to ensure for the Group, benefits from scale economies both in domestic and export markets and enable it to fund investments required for aggressively building new categories.

In January 2000, in a historic step, the government decided to award 74 per cent equity in Modern Foods to HUL, thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. HUL's entry into Bread is a strategic extension of the company's wheat business. In 2002, HUL acquired the government's remaining stake in Modern Foods.In 2003, HUL acquired the Cooked Shrimp and Pasteurized Crabmeat business of the Amalgam Group of Companies, a leader in value added Marine Products exports.

CHRONOLOGY

YEAR MILESTONES

1888 Sunlight soap introduced in India.

1895 Lifebuoy soap launched; Lever Brothers appoints agents in Mumbai, Chennai, Kolkata, and Karachi.

1902 Pears soap introduced in India.

1903 Brooke Bond Red Label tea launched.

1905 Lux flakes introduced.

1913 Vim scouring powder introduced.Analyzing the competitor factor and boosting up sales in gurgaon region 15

1914 Vinolia soap launched in India.

1918 Vanaspati introduced by Dutch margarine manufacturers like Van den Berghs, Jurgens, Verschure Creameries, and Hartogs.

1922 Rinso soap powder introduced.

1924 Gibbs dental preparations launched.

1925 Lever Brothers gets full control of North West Soap Company.

1926 Hartogs registers Dalda Trademark.

1930 Unilever is formed on January 1 through merger of Lever Brothers and Margarine Unie.

1931 Hindustan Vanaspati Manufacturing Company registered on November 27; Sewri factory site bought.

1932 Vanaspati manufacture starts at Sewri.

1933 Application made for setting up soap factory next to the Vanaspati factory at Sewri; Lever Brothers India Limited incorporated on October 17.

1934 Soap manufacture begins at Sewri factory in October; North West Soap Company's Garden Reach Factory, Kolkata rented and expanded to produce Lever brands.

1935 United Traders incorporated on May 11 to market Personal Products.

1937 Mr. Prakash Tandon, one of the first Indian covenanted managers, joins HVM.

1939 Garden Reach Factory purchased outright; concentration on building up Dalda Vanaspati as a brand.

1941 Agencies in Mumbai, Chennai, Kolkata and Karachi taken over; company acquires own sales force.

1942 Unilever takes firm decision to "train Indians to take over junior and senior management positions instead of Europeans".

1943 Personal Products manufacture begins in India at Garden Reach Factory.

1944 Reorganization of the three companies with common management but separate marketing operations.

1947 Pond's Cold Cream launched.

1951 Mr. Prakash Tandon becomes first Indian Director. Shamnagar, Tiruchy, and Ghaziabad Vanaspati factories bought.


1955 65% of managers are Indians.

1956 Three companies merge to form Hindustan Lever Limited, with 10% Indian equity participation.

1957 Unilever Special Committee approves research activity by Hindustan Lever.

1958 Research Unit starts functioning at Mumbai Factory.

1959 Surf launched.

1961 Mr. Prakash Tandon takes over as the first Indian Chairman; 191 of the 205 managers are Indians.

1962 Formal Exports Department starts.

1963 Head Office building at Back bay Reclamation, Mumbai, opened.

1964 Etah dairy set up, Anik ghee launched; Animal feeds plant at Ghaziabad; Sunsilk shampoo launched.

1965 Signal toothpaste launched; Indian shareholding increases to 14%.

1966 Lever's baby food, more new foods introduced; Nickel catalyst production begins; Indian shareholding increases to 15%. Statutory price control on Vanaspati; Taj Mahal tea launched.

1967 Hindustan Lever Research Centre, opens in Mumbai.

1968 Mr. V. G. Rajadhyaksha takes over as Chairman from Mr. Prakash Tandon; Fine Chemicals Unit commissioned at Andheri; informal price control on soap begins.

1969 Rin bar launched; Fine Chemicals Unit starts production; Bru coffee launched

1971 Mr. V. G. Rajadhyaksha presents plan for diversification into chemicals to Unilever Special Committee - plan approved; Clinic shampoo launched.

1973 Mr. T. Thomas takes over as Chairman from Mr. V. G. Rajadhyaksha.

1974 Pilot plant for industrial chemicals at Taloja; informal price control on soaps withdrawn; Liril marketed.

1975 Ten-year modernization plan for soaps and detergent plants; Jammu project work begins; statutory price control on Vanaspati and baby foods withdrawn; Close-up toothpaste launched.

1976 Construction work of Haldia chemicals complex begins; Taloja chemicals unit begins functioning.

1977 Jammu synthetic Detergents plant inaugurated; Indian shareholding increases to 18.57%.

1978 Indian shareholding increases to 34%; Fair & Lovely skin cream launched.


1979 Sodium Tripolyphospate plant at Haldia commissioned.

1980 Dr. A. S. Ganguly takes over as Chairman from Mr. T. Thomas; Unilever shareholding in the company comes down to 51%.

1982 Government allows 51% Unilever shareholding.

1984 Foods, Animal Feeds businesses transferred to Lipton.

1986 Agri-products unit at Hyderabad starts functioning - first range of hybrid seeds comes out; Khamgaon Soaps unit and Yavatmal Personal Products unit start production.

1988 Launch of Lipton Taaza tea.

1990 Mr. S. M. Datta takes over as Chairman from Dr. A. S. Ganguly.

1991 Surf Ultra detergent launched.

1992 HUL recognised by Government of India as Star Trading House in Exports.

1993 HUL's largest competitor, Tata Oil Mills Company (TOMCO), merges with the company with effect from April 1, 1993, the biggest such in Indian industry till that time. Merger ultimately accomplished in December 1994; Launch of Vim bar; Kissan acquired from the UB Group.

1994 HUL forms Nepal Lever Limited, HUL and US-based Kimberley-Clark Corporation form 50:50 joint venture - Kimberley-Clark Lever Ltd. - to market Huggies diapers and Kotex feminine care products. Factory set up at Pune in 1995; HLL acquires Kwality and Milkfood 100% brand names and distribution assets. HLL introduces Wall's.

1995 HUL and Indian cosmetics major, Lakme Ltd., form 50:50 joint venture - Lakme Lever Ltd.; HUL enters branded staples business with salt; HLL recognized as Super Star Trading House.

1996 Mr. K. B. Dadiseth takes over as Chairman from Mr. S. M. Datta; Merger of Group company, Brooke Bond Lipton India Limited, with HLL, with effect from January 1; HUL introduces branded aatta; Surf Excel launched.

1997 Unilever sets up International Research Laboratory in Bangalore; new Regional Innovation Centers also come up.

1998 Group company, Pond's India Ltd., merges with HUL with effect from January 1, 1998. HUL acquires Lakme brand, factories and Lakme Ltd.'s 50% equity in Lakme Lever Ltd.

2000 Mr. M. S. Banga takes over as Chairman from Mr. K. B. Dadiseth, who joins the Unilever Board; HUL acquires 74% stake in Modern Food Industries Ltd., the first public sector company to be disinvested by the Government of India.

2002 HUL enters Ayurvedic health & beauty centre category with the Ayush range and Ayush


Therapy Centers.

2003 Launch of Hindustan Lever Network; acquisition of the Amalgam Group

2005 Launch of "Pureit" water purifiers

Management StructureHindustan Unilever Limited is India's largest Fast Moving Consumer Goods (FMCG) Company. It is present in Home & Personal Care and Foods & Beverages categories. HUL and Group companies have about 16,000 employees, including 1200 managers.

The fundamental principle determining the organization structure is to infuse speed and flexibility in decision-making and implementation, with empowered managers across the company's nationwide operations. For this, HUL is organized into two self-sufficient divisions - Home & Personal Care & Foods - supported by certain central functions and resources to leverage economies of scale wherever relevant.

Board Divisions Central functions Businesses

Board of Directors/ Key PersonnelMr. Harish Manwani ChairmanMr D. Sundaram Vice chairmanMr Nitin Paranjpe CEO & MD Mr Hemant Bakshi Executive Director sales & customer development

Mr C.K Prahalad Independent DirectorMr D.S Parekh Independent DirectorMr Gopal Vittal Executive DirectorMr Sridhar Ramamurthy Executive Director & CFO

Sales and income break-up from different business activities of Hindustan Unilever Ltd. :


(Values in crores - (Source: www.hul.com))

PBIT Break-up:

(Values in crores)

(Source: www.hul.com)

HINDUSTAN UNILEVER LOGO

Logo of Hindustan Unilever is contaning the legacy of their parent company Unilever. Logo of Hindustan Unilever has also been changed with company name. This logo coincides with the announcement of new corporate identity. Name HUL was approved by shareholder at the year annual meeting on May 18 & new identity was officially announced on 25 June following government approval.

New identity provides optimum balance between maintaining the heritage of the company & synergies of global alignment with the corporate name of Unilever. Most importantly it retains


“Hindustan” as the first word in its name to reflect the company’s continued commitment to local economy, consumers, partners, & employers .

New logo symbolizes the company mission of “Adding Vitality to life” & play a very strongly in our vision of “Earning the love & respect of India by making a real difference to every Indian”. It comprises 25 different icons representing organization, its brands & idea of vitality.

SUN : Our primary natural resource. All life begin with this Ultimate symbol of vitality.

DNA : Double helix, the genetic blueprint of life & a symbol of bioscience. It is the key to a healthy life. While the sun is the biggest source of life,dna is the smallest

SPOON : A symbol of nutrition , tasting & cooking.

BOWL :A bowl of delicious smelling food. it can also represent a ready meal , hot drink or soup

SPICE & FLAVOUR : Represent chillie or fresh ingredient.

FISH : Representing food, sea or fresh water.

SPARKLE : Clean healthy & sparkling with energy.

SAUCE OR SPREADS : Represents mixing or string. It suggest blending in flavor & adding taste

BEE : Representing creation , pollination, hard work & bio diversity’s bee symbolizes both environmental challenges and opportunities.

HAND & FLOWER : Hand symbolizes sensitivity care & need .it represent skin & touch. & flowers , fragrance .when seen with hand , it represents moisture or cream.

ICECREAM : A treat, pleasure & enjoyment.

LIPS : represent beauty, looking good & taste.


HAIR : A symbol of beauty & good looking. Placed next to the flower it evokes cleanliness & fragrance ; placed near the hand it suggest softness.

PALM TREE : A nurtured resources. It produces palm oil as well as many fruits – coconuts, bananas & dates and symbolizes paradise.

BIRDS : A symbol of freedom. It suggest a relief from daily chores, & getting more out of life.

RECYCLE : A part of our commitment to sustainability.

PARTICLES : A references to science ,bubbles & fizz.

TEA : A plant or extract of a plant ,such as tea. Also a symbol of growing & farming.

FROZEN : The plant is a symbol of freshness, the snowflakes represent freezing. A transformational symbol.

LIQUID : A reference to clean water & purity.

WAVE : Symbolizes packaging – a pot of cream associated with personal care.

CLOTHES : Represents fresh laundry & looking goods.

HEARTS : A symbol of love , care & health.


OUT – OF – HOME BUSINESS

Have you caught the tail of a new trend in town? Have you as yet spotted the best of brands running into the terrain of out-of-home consumption? Running for cover from the meltdown in the in-home segment of consumption!

Out-of-home branding is the new buzzword sweeping Indian shores. Brands that stubbornly remain indoors through their positioning and segmentation strategies are in for a jolt! Consider the facts. The Indian population is a young population. Life expectation is longer than before. Income standards are up. Except for a year of aberration, the Indian monsoon has largely behaved! Good monsoons mean a good crop. Large parts of the rural economy are a non tax-paying economy. Good rains spell good crops and good crops in turn spell a good amount of disposable income!

The metro is a happening place. We have five big ones and a whole host of 29 one million plus population towns that are buzzing with activity. The man works. The woman works as well. The average Indian is spending a lot more time out of home than before. Eight hours at work, two hours on travel and two hours of outdoor entertainment and eating out, gobbles up half his day. And that's a lot of time spent out of home! The brand in his life has to appeal to his senses more out-of-home than when in home.

Tea and coffee have always been very popular beverages among people. It is beyond the class boundaries. People of all age groups relish them. With globalization and expansion of retail business, markets etc the ready to serve food items and beverages have gained lot of demand. One can spot the coffee tea vending machines almost everywhere- be it Hospitals, Airports, Commercial complexes, offices, big markets and even local colony markets. Its popularity can be judged from the fact that in places like Pragati Maidan one can find ready to serve tea, coffee almost everywhere. It has become a style statement to be drinking these instead of the handmade tea/coffee.

They sell like hot cakes especially in markets and shopping places. Nowadays people are conscious about hygiene. Many people go in for these ready to serve tea/coffee and of course their good taste is a major drawing factor.

Lipton Yellow Label has painted many a town and cities yellow! Many a restaurant, many a bus stop, and many a signage potential is today all yellow Lipton seems to run out of home and focus on consumption that is outdoor while Sister Brooke Bond seems to focus on what is happening inside the home!

“Happy people are productive people”. This is the basic rule of any company. Big or small, every employer tries at keeping his employees, customers and clients happy. Imagine if an organization has a wide range of refreshments to grab, at fingertips; if they could enjoy getting a whole load of refreshments as and when they wished for it. Lever foods service gives them this freedom in form of


vending machines. Available in hot and cold formats, they are the complete vending solutions for an organization. So, everyone is happy at the push of a button.

Geographically, tea is widely consumed in the North, East and West of India, and is popular with a wide variety of social classes and consumer age groups. Black standard tea constitutes nearly 80% of value sales. In the south, coffee is bigger as a proportion of total hot drinks than in the rest of the country though green tea has seen its popularity rise.

It accounts for 90% of the total beverage consumption in the country. In 2007, tea co9nstituted 70% of retail volume sales, compared to coffee and other hot drinks with 4.4% and 26% shares respectively.

Retail sales volume in year 2009

(Source: www.answers.com) India accounts for 26% of the total production of world’s tea and 4.6% of that of world’s coffee.

World Coffee Production in year 2009 - (source:www.financialexpress.com)


World Tea Production in year 2009 – (source : www.answers.com)

Unilever (Brooke Bond and Lipton) is the clear leader, holding over 30% of the market share, while Tata Tea (Tata) trails it with almost 20%. The remainder of the market is far more fragmented and shared between numerous small players. Loose tea comprises a 45-per cent market and is a formidable challenge to the Indian packaged tea segment, because of its lower prices.

The brand war

HUL Tata Tea

Premium leaf tea market (Rs 220-240/ kg)

Taj Mahal, Yellow Label and Green Label Tetley Temptations

Premium dust category (Rs 180-200 per kg) Three Roses and Top Star Chakra Gold

Medium leaf sector (Rs 140-180 per kg Red Label and Taaza Tata Tea Premium

Medium dust category (Rs 130-180 per kg) Taaza, Super

Tata Tea Premium, Kanan Devan and Gemini

Popular or economy category (Rs 120-140 per kg) A-1 and Tiger Agni Sholay

Economy dust teas (Rs 120-130 per kg) A-1 and Ruby Agni and Leo

Packet Tea Segment in India


Consumers in different parts of the country have heterogeneous taste. Dust tea is very popular in the south. In the western states, good quality loose tea is preferred in Gujarat, whereas in Maharashtra, consumers provide a large market to packet as well as unbranded tea.. The eastern states of West Bengal and Orissa consume CTC broken. Among the northern states, CTC fanning is liked in Rajasthan and CTC broken in others states of the North. The Central India is predominantly a dust market CTC = Cut, Tear, Curl. CTC production is a shortened, machine automated production process. Importance is put on a uniform leaf and a quickly colored infusion.Hindustan Unilever Limited’s (HUL) packet tea business has strengthened its position in the market in 2004, led by its two mega brands, Brooke Bond and Lipton. Simultaneously HUL continues to post strong growth in coffee.

HUL has further consolidated on the successful relaunched of Brooke Bond in the second half of 2003. The three Brooke Bond sub-brands, Taj Mahal, Red Label and Taaza, with their distinct positioning, have expanded their presence to cover new geographies. This has helped strengthen marketplace position.

Appropriately priced packs have been introduced to make the Brooke Bond offerings more accessible. Coupled with high-impact market activation, these packs have increased Brooke Bond’s market share and sustained its strong growth.

The Lipton brand, targeted at young consumers, has been appropriately expanded in the Out-of-Home segment. Lipton Ice Tea has been successfully test-marketed in Bangalore and Chennai. The consumer test proven mix will now be taken national, leveraging the alliance between HUL and Pepsi. HUL has already identified Out-of-Home as a growth driver. The channel, which has posted strong growth in the last two years, will be used for the entire HUL Beverages and Foods categories.

In the Instant Coffee segment, HUL continues to post strong growth. Bru Instant Coffee has been re-launched, with a new identity, communication and modern pack formats. Superior activation, penetration building activities and investment in strategic channels, like Out-of-Home, is contributing to the growth. Bru, as a franchise, has been strengthened with the filter coffee brand, Deluxe Green Label, re-launched as Bru Roast & Ground.

Consumption in leading producing countries- (source: ICO)


Coffee consumption in India, by and large is an urban phenomenon with an urban and rural divide of 71% and 29% respectively. Among the type of coffee consumed it was almost equally divided between instant (soluble) and filter (Roast and ground) coffees though the proportion of instant coffee is very high in non-south.

Per capita Consumption of Coffee in India (source:www.indiacoffee.org)

Attitude of Indian Coffee Consumers(www.indiacoffee.org)

Penetration (Beverage consumed in the past 12 months) of coffee at 59% is low compared to that of tea.

Penetration of filter coffee is highest in South India

In the Rural areas (South India) instant coffee has a higher level of penetration than filter coffee.

Consumption of coffee is relatively lower with 19% consuming it when compared to 85% for tea. Consumption was the highest in the South at 31 % while it ranges between just 35% in the weak coffee zones of North, East and South.

Yesterday's consumption is the highest among the 15-24 and 35-44 age group.

When compared to consumption of other beverages yesterday, coffee comes in third, after tea and plain milk. Among other beverages, buttermilk, natural beverages and Carbonated Soft Drink are more popular with more than 10% of respondents consuming these beverages yesterday.

Coffee is consumed as a first cup only by 23% of coffee drinkers even in the traditional market of the South.


http://www.indiacoffee.org/

Per capita consumption of coffee (among all respondents - both drinkers and non drinkers) is 0.33 cups against 1.77 cups for tea. However, coffee consumption among drinkers at 1.76 cups compares favorably with that of tea at 2.1 cups..

The proportion of non-drinkers is the highest in the oldest age group of 55+ years. Amongst coffee consumers in the rural areas, a majority (43% of all adults) is light drinkers, consuming 1-2 cups everyday. About a fifth of rural consumers consume coffee occasionally.

HISTORY OF VENDING MACHINESAutomated retailing through vending machines is a concept that has been exploited by entrepreneurs around the world for over four decades. India, however, is relatively virgin market though with huge potential. Vending may be considered as a new concept in India, but it has been in existence for thousands of years.

VendingTimeline

Details

215 B.C. Device to dispense holy water used in temples of Egypt, described by Mathematician Hero, who lived in Alexandria.

1076 A.D The Chinese produce a coin operated pencil vendor.

1700s Coin operated boxes appear in English taverns.

1886 U.S grants several patents for coin operated dispensers.

1888 Thomas Adams company installs Tutti Frutti gum machines on New York elevated train platforms.

1902 Horn and Hardart Baking Company opens automatic restaurant in Philadelphia.

1905 U.S post office begins to use stamp vendors.

1920s First commercial cigarette vending machine enters the market.

1930s Bottled soft drink machines, cooled with ice, appear on market.

1936 National Automatic Merchandising Association is founded.

1946 Invention of first coffee vendors leads to use of vending machines for coffee breaks.

1950 First refrigerated sandwich vendors expand lunch venue.

1957 U.S Public Health Service approves Model Vending Sanitation Code, and NAMA establishes industry’s first evaluation programmed certify vending equipment.


1960 Dollar bill changers are added to vending banks.

1980 Electronic components applied to vending machines.

1985 Credit card/debit card services for vending machines introduced.

1986 100th anniversary of vending machines in U.S.

1991 Flavored coffee, espresso and cappuccino introduced in machines.

1993 First remote wireless transmission of data from machines to warehouse.

1999 New dollar coin introduced by U.S mint

A GLIMPSE OVER THE ACHIEVEMENT OF HUL VENDING DIVISION

More than 25000 installations across 100 towns serving over a bil l ion cups of beverages per annum and growing.

Customized solutions for a wide array of needs from mall to offices to factories and hotels.

Support for 24/7 operations, including some of the biggest bpo’s, companies and banks.

Solutions for all offices ranging from 10 to 10000 people and at remote locations.


PRODUCT AND MACHINE RANGE

LIPTON – THE TEA AND COFFEE RANGEAn international brand with a winning formulation, with the assurance of total hygiene and top class quality, Lipton Tea and Coffee comes in a range of mouth-watering flavoring:-

TEA: - Plain Tea, Cardamom Tea, Hot Lemon, Tea Bag Tea.

COFFEE: - Bru Plain Coffee, Choco Almond, Bru Diet Coffee, Cappuccino Special Coffee.

COLD RANGE: - Bru Cold Coffee (Frappucino), Lipton Ice Tea (Lemon, Peach).

SOUP RANGE: - Knorr Tomato Soup

THE LIPTON VENDING MACHINE Lipton Vending Machines have been specially designed and are being introduced keeping our market realities and interests in mind. Following are the variants of Vending machines:

Mr. Dependable – The New 4 Lane U Cup Machine

1. Option of 4 ingredients in nature of coffee, tea, soup etc.2. Staggered dispensing option for tea bag.3. Temperature interlocking.4. Auto cleaning


5. Water source – Online/Bubble top

Smart card Machine

1. Option of 4 ingredients in nature of coffee, tea, soup etc.2. Post or pre paid option through smart card3. Option for consumption data down loading to PC for MIS processing.4. Staggered dispensing option for tea bag.5. Auto Cleaning6. Temperature Interlocking7. Water source – Built in tank/ bubble top

Thirst Quencher – Ice Tea Machine

1. Option of 2 ingredients in nature of ice tea and cold coffee.2. Dispensing Rate:

- 3 cups/min (200ml each)- Approx 20 cups non stop


3. Auto cleaning4. Water source – Online/ Bubble top

High Speed Hot Machine

1. Option of 5 ingredients in nature of coffee, dairy whitener, soup etc.2. Option of simultaneously dispensing 3 drinks.3. Option of cappuccino.4. Staggered dispensing option for dairy whitener.5. Dispensing rate:

- 15 cups/min of 100 ml each - Approx 250 cups non-stop

6. Auto cleaning.7. Temperature inter-locking

A Café bar at Work – Fresh bean Coffee Machine

1. Option of 4 ingredients in nature of coffee bean, dairy whitener, soup etc.2. Providing 10 drink options including 6 options of fresh bean coffee.3. Dispensing rate :

- 2 cups/min of 100ml each4. Temperature interlocking5. Water source – on-line/ Bubble top.


A Lipton Vending Machine is the most advanced of its kind. Features like Microprocessor controlled water temperature, inbuilt Digital Counter, Hardware Lock and Auto-Flush system helps to maintain a low failure rate. It is also hygienic and insect proof, which also contributes to its durability. Flexibility in cup offerings – full and half; is another attribute that makes the Lipton Vending Machine stand out as the most convenient vending machine. The technologically superior equipment has been put through intense stress tests so that it can withstand the demanding local market.

WATER MANAGEMENT

The HUL Company has been known for remarkable consistency in quality for over a hundred years. To ensure that quality beverage is served consistently, cup after cup, the Lipton Vending Machine is fitted with any of four different types of filters :- SINGLE, DOUBLE, TRIPLE AND RESIN filter. This makes sure that the best and safest quality of water goes into the vended Lipton cup. The filter thus enhances the quality of water, taste of the beverage and also increases equipment life.

SERVICE SUPPORTFor the Lipton vending machine, there shall be an authorized service center with a vast network to cater to the needs of the customer. Three basic steps shall be undertaken to ensure long life and smooth functioning of your Lipton Vending Machine.

1) Regular Daily Maintenance: - Proper training shall be imparted on the daily usage, cleaning and maintenance of the Lipton Vending Machine, at the time of installation, to your personnel.

2) Monthly Preventive Maintenance: - The Lipton crew shall make regular monthly visits for check-ups, maintenance and smooth functioning of Lipton Vending Machine.

3) Breakdown and Repairs: - In case of breakdown, the Lipton crew shall address the problem promptly and effectively. Also, a regular dispatch plan for the pre-mixes shall be regularly communicated to you, for you to maintain an appropriate stock inventory. An exclusive customer care phone no. is provided for any queries and assistance on the Lipton Vending Machine.


DISTRIBUTION CHANNEL

FACTORY

DEPOT DEPOT

R.S R.S R.S R.S

CONSUMER CONSUMER CONSUMER CONSUMER

You don’t know how much people are buying pears, lux & fair & lovely but in OOH company directly touches the customer & they know how much consumption is there. In the distribution channel of vending machine retailer doesn’t play part after the Redistribution Stockiest (R.S.) consumer can avail the product.


COMPETITOR PRODUCTS

The three chief competitors of Hindustan Unilever Ltd in tea and coffee vending business are Nescafe, Tata, Georgia and Café Coffee Day which have their presence in the market with following products:

1) Café Coffee Day

Café Coffee Day is a chain of coffee shops in India. A division of Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL), it is commonly known as Coffee Day. It opened its first cafe in 1996 on Brigade Road in Bangalore, and today has the largest cafe retail chain in India - with 436 cafes in 69 cities.Headquartered in Bangalore, a majority of its cafes are also located in Bangalore. The cafe chain has had much success riding, and to some extent

creating, the cafe culture wave that swept across metropolitan Coffee Day sources coffee from 10000 acres of coffee estates, the 2nd largest in Asia, that is owned by a sister concern and from 11,000 small growers. It is one of India’s leading coffee exporters, with clients across the USA, Middle East Europe and Japan.

(2) FRESH & HONESTTill recently a company selling beverages, Fresh and Honest, a part of the Sterling group, has now added noodles and corn flakes to its product basket by signing up deals with Indo Nissan Foods Limited (makers of Top Ramen noodles) and Kellogg's.

Fresh and Honest imports soup powder and Swiss chocolate powder from two Swiss companies Haco and Domaco respectively. The coffee bean, dip tea packs, milk and sugar are sourced within India. The coffee bean is sourced from Chikmagalur, Karnataka.Fresh and Honest imports soup powder and Swiss chocolate powder from two Swiss companies Haco and Domaco respectively. The coffee bean, dip tea packs, milk and sugar are sourced within India. The coffee bean is sourced from Chikmagalur, Karnataka.

(3) TATA TEA Another competitor of HUL is Tata with its brand Tetley.

Tata Coffee Limited, one of the world’s largest integrated coffee company. The company earlier known as Consolidated Coffee was renamed as Tata Coffee with the merger of Coffee Land and Asian Coffee.


Tetley has been a member of the Tata Group since March 2000 and today contributes around two-thirds of the total turnover of Tata Tea. The company is a joint venture between Tata Tea, which produces 40 million kg of tea per annum at its gardens, and the UK-based Tetley Group, a tea blender and tea bag producer of international repute. The Tata-Tetley combine offers a wide range of international quality products, such as round tea bags, string and tag tea bags, and packet tea.

VENDING MACHINE & THEIR FEATURESSINGLE OPTION—simple-sleek, detachable drip tray, hot water facility.DOUBLE OPTION-HOT—detachable drip tray, hot water facility. TRIPLE OPTION-HOT—built in stabilizer, auto cleaning, digital counter, temperature interlocking. FOUR OPTION-HOT— auto cleaning, digital counter, temperature interlocking, auto flushing. MULTIPLE OPTION-HOT— Provision for mineral water bubble top, auto flushing, temperature interlocking, digital counter.

(4) NESTLE

The main competitor of HUL vending products in the market is Nestle. And listed below are some points about Nestle.All about NestléNestlé was founded in 1866 by Henri Nestlé, a pharmacist, who developed a food for babies who were unable to breastfeed. The Nestlé Company has aimed to build a business based on sound human values and principles. Nestlé is committed to the following Business Principles in all countries, taking into account local legislation, cultural and religious practices:Nestlé's business objective is to manufacture and market the Company's

products in such a way as to create value that can be sustained over the long term for shareholders, employees, consumers, and business partners.

Nestlé does not favor short-term profit at the expense of successful long-term business development. Nestlé recognizes that its consumers have a sincere and legitimate interest in the behavior, beliefs and actions of the Company behind brands in which they place their trust and that without its consumers the Company would not exist. Nestlé believes that, as a general rule, legislation is the most effective safeguard of responsible conduct, although in certain areas, additional guidance to staff in the form of voluntary business principles is beneficial in order to ensure that the highest standards are met throughout the organization.

Nestlé is conscious of the fact that the success of a corporation is a reflection of the professionalism, conduct and the responsible attitude of its management and employees. Therefore recruitment of the right people and ongoing training and development are crucial.

Nestlé continues to maintain its commitment to follow and respect all applicable local laws in each of its markets.


TEA Nestea Tea Bags, Instant Tea Premix ( Cardamom Flavor), Instant Tea Premix (Plain Tea), Lemon Tea, Dairy Whitener, Everyday Sugar FreeCOFFEE Nescafé Premix, Nescafe Low Sugar, Cappuccino, Mochacino.MAGGI TOMATO SOUP

COMPETITOR’S PRICES

GEORGIA

Product Name Rate Specification

Georgia Milk 110.00 Per Kg( Appx. 100 cups)

Georgia Cardamom Tea/ Ginger Tea/ Masala Tea

220.00 Per Kg (Appx.95 Cups)

Georgia Coffee 200.00 Per Kg (Appx. 95 Cups)

Georgia Hot Lemon Tea 190.00 Per Kg ( Appx. 125 Cups)

Georgia Without Sugar Milk 310.00 Per Kg (Appx 200 cups)

Sun fill Soup 330.00 Per Kg ( Appx. 167 Cups)

NESTLE

Product Name Rate Specification

Nescafe Coffee Premix 185.00 Per kg (Approx. 80 cups)

Nescafe Low Sugar Premix 200.00 Per Kg (Approx. 80 cups)

Nescafe Classic coffee 535.00 Per 500 Gms,

Everyday Whitener Premix 112.00 Per kg (Approx. 100 cups)

Everyday Dairy Whitener Poly 180.00 Per kg

Badam Milk Premix 220.00 Per Kg

Nestea Lemon / Peach Premix 98.00 Per 500 gm (Approx. 15 cups)

Nestea Cardamom Tea Premix 190.00 Per kg (Approx. 80 cups)


Maggie Hot Cup Soup Tomato 375.00 Per kg (Approx. 170 cups)

Tea Bags 0.70 Per Bag

Creamer 3Gm 101.83 Per Case( 24pkt)

Paper Beaker 150 Ml 0.45 Per Beaker

Plastic Beaker 150 Ml 0.50 Per Beaker

Sugar Powder 43.50 Per Kg

Sugar Cube [Economy Pack] 42.00 Per kg

OBJECTIVE OF TRAINING

An attempt has been made to fulfill the following objectives:

(i) Finding new opportunities for the vending services of the company by making organizations acquainted with concept.

(ii) Handling marketing and sales operations for achieving increased growth & profitability.(iii) Generating leads and converts them into sales for product.(iv) Customer grievances and distributor handling.

I subdivide these objectives as:

(i) Understanding the nerve of competition in the market with major players namely Café Coffee Day, Nestle, Georgia etc.

(ii) Understanding the pulse of the market & accordingly plan the course of action.(iii) Interacting with clients for understanding their need and the information required by

them.(iv) Finding the major factors that led the customers to decide on which tea/coffee they

choose.


RESEARCH METHODOLOGY

RESEARCH DESIGNA Sample Design is definite plan for obtaining a sample from given population. it refer to technique or procedure the research would adopt in selecting item for the sample.

SAMPLE PLAN FOR SURVEYSAMPLE UNIT - Institutional & Factories.SAMPLING AREA – Gurgaon SAMPLE SIZE - 50 companies and 100 customersDATA COLLECTION – Through Questionnaire Further I have divided the whole gurgaon in three par 1. INFINITY TOWERS 2. SECTOR 56 3. SECTOR 32

1. PRIMARY SOURCES

Primary data are gathered for a specific purpose or for a specific research project. In this project, the data I have collected is regarding the use of vending machines by having interactions with the HR person, ADMIN. HEAD, and the purchase manager that which machine they are using whether it is nestle, Georgia, Lipton and with the help of which market share of each company is calculated.

2. SECONDARY SOURCES

In this purpose secondary Data is useful to collecting the various information about companies like telephone no. addresses etc. so I have consulted telephone directory & Informative websites.

NOTES:

Primary data was collected through the survey done by the questionnaires. Questionnaires are the most reliable method of primary data collection.

More than 150 companies were surveyed in the Gurgaon City on a random choice basis.


Customer interaction was done at canopy, door step and in the market and other public places.

I enumerate the data and they were converted into frequency distribution. DATA INTERPRETATION: through these frequency distributions graphs & charts were

made for further analysis. These were used to draw the conclusions of the survey.


ANALYSIS AND FINDINGThere are 7 channel of distribution of vending machine.

1) INSTITUTION : The main business of company is coming from institution which includes call centers, offices, cooperates. The 70-80% of business is coming from institutions. In institution where white collar people work you can expect decency in using machine from them. Key institutions are Daksh, Satyam, L&T, BSNL, TCS etc

2) FACTORY : The 5-10% of business is coming from factories, govt. offices etc. Company supply premixes in bulk. In factories blue collar people work they can’t handle machine properly.

3) ENTERTAINMENT & LEISURE: Third channel of distribution is entertainment which includes malls, multiplexes, cinema halls, fast food chain etc. in E&L company focus on branding like is ties up with several accounts like PVR, CHANKYA, FUN CINEMA, etc. Company spends 25 lakh in PVR for branding. Only 1-2% of business is coming from this part.

4) EATING & DRNKING : In E&L company is getting only 1-2-% business. In this part company works only work on visibility.

5) HEALTH CHANNEL : In health Channel Company mainly focus in nursing home, hospital. Company mainly focus on hygiene factor if they find appropriate if install it there otherwise not.

6) TRAVEL: In travel part we deal in Airport, Railway station, Bus stand, Taxi stand. Company has ties up with Delhi Metro Corporation.

7) HOTELS : In Hotels Company focuses on mass consumption. The main business is of Tea bags.

There is no other part where you find footfall of the consumer & you don’t find the product of Lipton.

This is price comparison chart between the Lipton, Nescafe & Georgia. In the price of tea bag all are approximately equal. Cost of coffee premix of nestle is slightly more than Lipton & Georgia. Hot lemon tea is only available from Lipton & Georgia.


PRICE COMPARATIVE CHART

A - Cost per cup of tea with tea bagB – Per cup cost of coffee premixC – Per cup cost of cardamom teaD – Per cup cost of soupE – Per cup cost of hot lemon tea

AN ANALYSIS OF THE USE OF TEA/COFFEE MACHINES IN GURGAON

Lipton

From which company do you buy the beverage vending machine services?

What is an approximate number of employees of your organization?


616

%

Nestle 11

29%

Fresh n Honest 3 8%

Georgia 7 18%

Costa Coffee 2 5%

Coffee Day Express 9 24%

Less than 100 9 24%

100-200 6 16%

200-300 5 13%

300-400 3 8%

400-500 1 3%

500-700 6 16%

700-1000 4 11%

1000-1500 0 0%

Have you ever faced any problems with your service provider?

Delivery of the raw material was not on time 1 3%

No regular maintenance check ups were done 4 11%

Faulty machine infrastructure 0 0%

Late response to complaints 2 5%

No Complaints 30 79%

Any other(please mention) 1 3%

Is there any company executive who pays regular visits for a monthly check up


of machines?Yes 29 76%

No 9 24%

How do you rate the product satisfaction?

Bad Good

1 - Bad 0 0%

2 2 5%

3 18 47%

4 16 42%

5 - Good 2 5%

What kind of relations do you share with your vendor?

Bad Good

1 - Bad 0 0%

2 2 5%

3 20 53%

4 13 34%

5 - Good 3 8%

There is cut-throat competition among the leading players in the packaged tea market and HUL is the market leader with a share of around 30 per cent, followed by Nestle at 20 per cent.

But in out-of-home business of hot beverages, HUL and Nestle have got into this segment in a big way. They jostle for space with players such as Tata Tea and Tata Coffee, the Coffee Day group, which has two brands including Coffee Day Takeaway and Coffee Day Bean to Cup, Sterling InfoTech group’s Fresh & Honest (promoted by NRI businessman C Sivasankaran, who also controls the coffee retail chain Barista), Coca-Cola’s Georgia Tea and Coffee and Fountain Consumer Appliances.Accordingly, Nescafe leads in the market as shown by the collected data and, hence, becomes the strongest competitor for Lipton.


According to a survey conducted by AC Neilson (released on March 04, 2006), Nescafe continues to be more popular among instant coffee drinkers. The Rs 511 crores coffee market consists of instant and roasted and ground coffee. Nescafe enjoys the larger share of the Rs 361-crore instant coffee market. Although, their all-India retail numbers that have just come in suggest that Bru has established market leadership with 44% branded coffee drinkers preferring it.

The reasons for which the corporate houses prefer vending machines to manual methods of preparing tea and coffee:

Provides options for wide variety of products Time saving Less cost associated Diet, low sugar, without sugar options available for concerned groups Options for hot and cold drinks Keeps record of number of cups dispensed allowing the organization to maintain budget

An activity that is closely tied to sales is distribution. You have a factory and you have your customers in different locations, which different purchasing patterns and demands. What is the best way to take your product to the customers so that it remains profitable for the firm too? That is a question answered by distribution. In FMCG, generally we deal in indirect selling, i.e., we sell to someone who then sells it to someone else.

There are various reasons for which the company operates this chain through distributor sales management which can be summarized as follows:

The distributors' ability to offer a more complete package of services is not only an inventory support, but also an administrative, technical and logistic support. This ability, together with the quick delivery of components to the myriad of customers that manufacturers cannot afford to support, makes distribution a marketing channel of primary consideration.

Distributors provide an increased market share for the manufacturers bringing your message to a larger customer base.

There can be some business that is too small for you to handle, or too much trouble because of its location. A distributor network will take this burden and change it into on opportunity. Because the distributor is service oriented, he makes it a point to work with business regardless of size or scope.

Distributors provide flexibility that manufacturers do not, such as delivery reschedules and small quantity requirements

Financial Aspects:Deal is confirmed and negotiation ends at the point where both the parties are assured of their benefits. HUL tries to ensure a return of at least 12% on consumerables to its distributors. So, I tried to analyze the account in the following 2 ways:

a)Monthly billing of tea and coffee in the company:Let billing = Rs 15000


12% of Rs 15000 = Rs 1800Here, distributor is in benefit even if he does not charge monthly maintenance charges.

Now, the customer doesn’t enter into deal unless he is made acquainted with the benefit available to him.Let us consider a firm ‘A’ having 60 employees and consumption is 120 cups per day (say, 60 cups of tea and coffee each).

TEA: 60 * 3 = Rs 180COFFEE: 60 * 5 = Rs 300Total = Rs 480For 1 month = Rs 480 * 25 = 12000[Add: salary of spot boy = Rs 1000 Add: breakage = Rs 100]Total = Rs 13100

[Here, each cup of tea and coffee is assumed to be of Rs 3 and Rs 5 respectively]

Now, with Lipton vending machine this cost will minimized as follows:TEA = 2.75 * 60 = Rs 165COFFEE = 2.40 * 60 = Rs 144Total for 1 month = Rs 309* 25 = Rs 7725Add: Rent = Rs 1500Total = Rs 9225

Benefit of customer = 13100– 9225 = Rs 3875

ANALYSIS OF THE RESPONSE OF CONSUMERS TOWARDS TEA/COFFEE VENDING MACHINES AT AIRPORTS AND METRO STATIONS

Frequencies

Statistics

How many times Brand Wate of Time

N Valid 100 100 100

Missing 0 0 0

Mean 2.50 2.23 3.03

Median 2.00 2.00 3.00

Mode 2 2 2

Frequency Table


How many times

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1-2 20 20.0 20.0 20.0

2-3 31 31.0 31.0 51.0

3-4 28 28.0 28.0 79.0

more than 4 21 21.0 21.0 100.0

Total 100 100.0 100.0

Brand


Cumulative

Percent

Valid Lipton 28 28.0 28.0 28.0

Nestle 37 37.0 37.0 65.0

Coffee Day Express 19 19.0 19.0 84.0

Georgia 16 16.0 16.0 100.0

Total 100 100.0 100.0

Waste of Time


Cumulative

Percent

Valid Strongly Disagree 15 15.0 15.0 15.0

Disagree 24 24.0 24.0 39.0

Neutral 21 21.0 21.0 60.0

Agree 23 23.0 23.0 83.0

Strongly Agree 17 17.0 17.0 100.0

Total 100 100.0 100.0


FACTOR ANALYSISFactor analysis is a very important test, which helps us in identifying the factors, which contribute maximum to a particular event. The factors, which explain the maximum variance, are identified and depending on the value of their coefficients they are grouped together and renamed to form a factor, which explains the various components, contained in that factor.

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .516

Bartlett's Test of Sphericity Approx. Chi-Square 210.157

df 36

Sig. .000

Bartlett's test of sphericity indicates whether correlation matrix is an identity matrix, which would

indicate whether variables are unrelated. The significance level gives the result of the test. Very small

values (less than .05) indicate that there are significant relationships among variables. Thus, we can

see that as our value of Bartlett’s test is 0.000, therefore there is a significant relationship

between the variables.

Also the Kaiser test shows that the variables are related as the value is 0.516. On the basis of

these two tests we can say that we can proceed with the Factor Analysis on this data.


Communalities

Initial Extraction

Brand Preference 1.000 .791

Taste 1.000 .591

Freshness 1.000 .923

Availability 1.000 .821

Weather Dependent 1.000 .500

Price 1.000 .658

Level of Sweetness 1.000 .912

Service Quality 1.000 .221

Variety 1.000 .627

Extraction Method: Principal Component Analysis.

Communalities indicate the amount of variance in each variable that is accounted for. Initial

communalities are estimates of the variance in each variable accounted for by all components or

factors. For principal components analysis, this is always equal to 1.0 (for correlation analyses) or the

variance of the variable (for covariance analyses). Extraction communalities are estimates of the

variance in each variable accounted for by the factors (or components) in the factor solution. Small

values indicate variables that do not fit well with the factor solution, and should possibly be dropped

from the analysis.

In our analysis, we have dropped variables whose extraction value is less than 0.5. In the above

table, there is one value below 0.5; service quality therefore, we remove this variable from our

further analysis.


Total Variance Explained

Component Initial Eigenvalues Extraction Sums of Squared Loadings

Total % of Variance Cumulative % Total % of Variance Cumulative %

dimension0

1 2.156 23.955 23.955 2.156 23.955 23.955

2 1.649 18.319 42.274 1.649 18.319 42.274

3 1.159 12.880 55.155 1.159 12.880 55.155

4 1.080 11.999 67.154 1.080 11.999 67.154

5 .999 11.105 78.260

6 .859 9.541 87.801

7 .655 7.275 95.076

8 .293 3.260 98.336

9 .150 1.664 100.000


This table gives Eigen-values, variance explained, and cumulative variance explained for your factor solution. The first panel gives values based on initial eigen-values. The "Total" column gives the amount of variance in the observed variables accounted for by each component or factor. The "% of Variance" column gives the percent of variance accounted for by each specific factor or component, relative to the total variance in all the variables. The "Cumulative %" column gives the percent of variance accounted for by all factors or components up to and including the current one. In a good factor analysis, there are a few factors that explain a lot of the variance. For principal components extraction, these values will be the same as those reported under Initial Eigen-valuesThe total variance explained by the eleven factors is 67.154%


The scree plot helps to determine the optimal number of components. The eigen-values of each component in the initial solution is plotted. Generally, the components on the steep slope are extracted. The components on the shallow slope contribute little to the solution.

The last big drop occurs between the eighth and the ninth components, so we use the first eight components.


Component Matrixa

Component

1 2 3 4

Brand Preference .700 .442 .164 -.281

Taste .071 .215 -.048 .733

Freshness .750 -.548 -.243 .034

Availability .611 .592 .312 -.025

Weather Dependent -.135 -.206 .268 -.606

Price .177 .562 -.525 -.186

Level of Sweetness .756 -.530 -.244 .009

Service Quality .277 .171 .285 .185

Variety .166 -.297 .697 .160


a. 4 components extracted.

This table reports the factor loadings for each variable on the unrotated components or

factors. Each number represents the correlation between the item and the unrotated factor.

Now we need to find those eight factors that determine the choice. So we repeat the process by

applying factor analysis on the data. The data in all iteration is smaller in size than the previous one.

To eliminate the unwanted factors we see the rotated component matrix. We eliminate those

questions wherein the difference between the highest and the second highest value is less. We

continue this process till we can’t eliminate any factor. So writing all the iterations we get the

following results:

Factor Analysis


KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .516

Bartlett's Test of Sphericity Approx. Chi-Square 203.411

df 28

Sig. .000

Communalities

Initial Extraction


Taste 1.000 .544




Price 1.000 .639


Variety 1.000 .739


Total Variance Explained

Component Initial Eigenvalues Extraction Sums of Squared Loadings

Total % of Variance Cumulative % Total % of Variance Cumulative %

dimension0

1 2.114 26.431 26.431 2.114 26.431 26.431

2 1.636 20.445 46.876 1.636 20.445 46.876

3 1.145 14.317 61.192 1.145 14.317 61.192

4 1.076 13.445 74.638 1.076 13.445 74.638


Communalities

Initial Extraction


Taste 1.000 .544




Price 1.000 .639


Variety 1.000 .739

5 .903 11.288 85.926

6 .667 8.339 94.265

7 .309 3.861 98.126

8 .150 1.874 100.000



Therefore we get the eight components that are taken into consideration while making the choice for

tea and coffee while they are out of their homes and for a particular brand selection. These are:

1. Brand Preference towards a particular Brand.

2. Taste of the tea/ coffee.

3. Freshness of the tea/coffee.

4. Availability of the tea/coffee machine at the airport and metro station.

5. The choice of coffee and tea also depends on the weather i.e. hot or cold.

6. The price of the cup of tea/ coffee is also an important determinant of the choice.

7. The sweetness in the tea also determines a particular brand.

8. The customers prefer a variety in the drinks like or those who drink 3-4 cups a day want

Now eliminating the negative questions we get the final factors. These are :

1. The service quality of the brand doesn’t make much of a difference to the customers.

Therefore our result.


SWOT ANALYSIS

STRENGTHS

Strong and well differentiated brands with leading share positions. High quality and safe products, endorsed by the Hindustan Unilever Limited Seal of Guarantee at

affordable prices. Strong R&D capability well linked with business ensuring better controls on the quality and

consistency of product. Integrated and efficient supply chain and well spread manufacturing units. Distribution structure with wide reach, high quality coverage and ability to leverage scale. Ongoing Product innovation and renovation, to convert consumer insights High quality manpower resources. Attractive design and distinctive features of the machine. Far better preventive and break down maintenance. The distributors are required to undergo quality checks to maintain standards. Aggressive sales team and capable and committed manpower resources. Good market response in Delhi and Noida Tie up with other leading chains –DMRC, PVR, Airtel, HCL Technology, Reliance Energy, Ansal

Plaza to name a few. Environment friendly cups. Excellent range of tea and coffee premixes providing flexibility of sweetness and diet option for

concerned people.

WEAKNESSES

Limited success in changing consumption habits of people. Complex supply chain configuration, unwieldy number of SKU's with dispersed

manufacturing locations. Price positioning in some categories allows for low price competition. Stock-out in case of much advertised flavors acts as a barrier in the retail channels. Much higher machine prices with lesser flexibility vis-à-vis competition which leads to higher

rentals/EMIs. Low viability of revenue sharing model especially during off-season. .Absence of ginger flavor in the premix range of tea and this is the most preferred flavor in

northern India especially during winters Vending machine having customization like token system are highly priced making it unviable

for many corporate clients in a need to record/control consumption. After sales service not up to the “Expected Standards”. Hot beverages are less preferred during summers.


OPPORTUNITIES

Brand growth through increased consumption depth and frequency of usage Market growth through increased penetration in the unventured industrial areas like

Patparganj etc. Upgrading consumers through innovation to new levels of quality and performance. Growing consumption in Out of Home categories and high potential market. Changing lifestyles. Development of alternate channels such as catering, STD/PCOs, cyber café, pump, etc. Involving DSAs and courier companies for lead generation on commission basis as have

access to administration department of the corporate houses. Leveraging technology to develop more products that provide Nutrition, Health and Wellness. To increase acceptance of instant Tea/Coffee amongst masses by sampling promotion etc.,

who still seem to be averse to it, keeping in mind the unpredictable preference in taste especially because of the loose control of the same in the competitor’s machines.

Introduction of a consumer finance scheme by a third party e.g. GE country finance can widen the machine placement base without utilizing distributors capital.

Hosting the Commonwealth Games in 2010 will influence the development of the retail infrastructure creating opportunities for vending operators to fill the gap in the market.

THREATS

Low priced competition now present in all categories. Spurious/counterfeit products. Seasonality. Substitutability. Heavy competition with new entrants offering me-too products or with very little variation

with all kinds of attractive offers for getting edge in market.


BUSINESS OPPORTUNITIESApart from corporate world and public places like metro stations, airports and railways stations there are some other places as well where the use of tea/ coffee machines is prevalent. These are hospitals and educational institutions.

A short research was conducted in 5 major hospitals in the area of Karol Bagh.

Name of Hospital AddressMachine Installed

Approximate Footfall Contractor

Contractor Details

Kolmet Hospital Shankar Road, Karol Bagh Nestle

100 cups each of tea and coffee NA NA

B.L Kapur HospitalPusa Road, New Delhi 110005

Nestle (3)

500 cups of tea; 300-400 cups of coffee

Sanjay Pancholi 9212324601

Delhi Heart and Lung Institute

Aram Bagh, Jhandewalan, New Delhi Lipton

Rs.30,000 per month

Mahesh Kumar (Sodexo Facility) 9990334161

Jessa ram HospitalGurudwara Road, Karol Bagh

No Machine 0 Sh. Nagesh 9818457309

Sir Ganga Ram Hospital

East Patel Nagar, New Delhi Lipton

500 cups of tea and coffee Mr. Uttam 9953958076

A similar research was conducted for educational institutions in the Dwarka area:

Name of Institution Address

Machine Installed

No of students

Name of the Contractor

Contractor Details

N.K Bagrodia Public School

Sector-4, Dwarka, New Delhi-110075 Georgia 2300

Mrs. Geeta Vaid 9868814432

Netaji Subhas Institute of Technoogy

Azad Hind Fauj Marg, Sec-3, Dwarka Nestle 2500 Mr. Rakesh NA

Bhaskaracharya

Sector-2, Dwarka Nestle 700 NA NA


College of Applied SciencesDelhi Public School

Sector-4, Dwarka, New Delhi-110075 Nestle 2500 NA NA

Sri Ventakateswara international School Sector-10, Dwarka Nestle 2500

Ms. Preeti Bali NA

UPCOMING OPPORTUNITIES

Dwarka being an upcoming sub-city in the south-west region of Delhi has many upcoming projects in terms of institutions and offices which give full scope for the installation of HUL’s tea/ coffee vending machine.

These are

Upcoming Opportunities Address Status

Columbiasia HospitalAnsal Palam Vihar, F Block, Near Sector 23, Palam Vihar Under Construction

Lal Bahadur Shastri Institute of Management Sector-11, Dwarka session to begin from July2010

GGSIPU Sector-16C, Dwarka

Under Construction and an estimated student strength of 10000

Hotel Park Resort and Shopping Mall Sector-13, Dwarka Under Construction

Deen Dayal Upadhyay College location not informed construction yet to begin

District Court Sector-10, Dwarka Functional but no machine

Dr. B.R Ambedkar University Plot-13, Sector-9, Dwarka Functional but no machine

National Law University Sector-14, Dwarka Functional but no machine

Super Speciality HospitalA-1/5,Main Pankha Road, Janakpuri

Semi functional but no machine

DPC Institute of management Sectof-10, Dwarka Functional but no machine


BIBLIOGRAPHYThere were several sources which provided me with the valuable information about

Hindustan Unilever Limited. This information helped me in enhancing the affectivity

of this presentation.

Some of my valuable sources are:

www.google.com www.yahoo.comwww.hll.comwww.answers.comwww.indiainfoline.comwww.naukrihub.comwww.wikipedia.comwww.businessworldindia.comwww.financialexpress.comwww.indiacoffee.org

COMPANY MAGZINE (HAMARA)


http://www.indiacoffee.org/

http://www.financialexpress.com/

http://www.businessworldindia.com/

http://www.wikipedia.com/

http://www.naukrihub.com/

http://www.indiainfoline.com/

http://www.answers.com/

http://www.hll.com/

http://www.yahoo.com/

http://www.google.com/

APPENDIXThere are two questionnaires that were used in the research one for the research in corporate world and the other for local customers who use the product on airports and metro station.

The data sheet for the same is also enclosed along with the questionnaire.

This questionnaire will identify the tea/coffee machine used by companies in Gurgaon and its related information

Name of the Executive *

Name of the Company *

Contact Information *

From which company do you buy the beverage vending machine services? *

Lipton

Nestle

Fresh n Honest

Georgia

Costa Coffee

Coffee Day Express

What is an approximate number of employees of your organization? *

Less than 100

100-200

200-300

300-400

400-500

500-700


700-1000

1000-1500

1500-2000

2000-3000

above 3000

Have you ever faced any problems with your service provider? machine *

Delivery of the raw material was not on time

No regular maintenance check ups were done

Faulty machine infrastructure

Late response to complaints

No Complaints

Any other(please mention)

Is there any company executive who pays regular visits for a monthly check up of machines? *

Yes

No

How do you rate the product satisfaction? *

1 2 3 4 5

Bad Good

What kind of relations do you share with your vendor? *

1 2 3 4 5

Bad Good


This questionnaire gathers information from its direct customers on the Delhi Airport and major metro station of Delhi.

Q1. Name :

Q2. How many times do you take tea/ coffee from vending machine in a day?1. 1-22. 2-33. 3-44. More than 4 cups

Q3. Do you have specific brand preference when you take tea/coffee from vending machines?

1. Strongly Disagree2. Disagree3. Neutral4. Agree5. Strongly Agree

Q4. Which brand do you prefer the most?

1. Lipton2. Nescafe3. Coffee day Express4. Georgia

Q5. Is taste an important factor when you have tea/coffee outside your homes through vending machines?


Q6. Do you rate freshness as important feature when you take tea/coffee through vending machines?


Q7. Is the availability of the brand an important factor when you make your choice for tea and coffee?



Q8. Does your choice of hot or cold tea/coffee depends on weather?


Q9. Is the level of sweetness an important factor when you select your tea/coffee from the vending machine?


Q10. Does the service quality of the retailer of the vending mavhine makes an important factor when you select your tea/coffee?


Q11. Do you enjoy variety in your tea/coffee drinking pattern?


Q12. Do you think drinking tea/coffee on metro stations or airports is a waste of time?



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