ATAL BIHARI VAJPAYEE

INDIAN INSTITUTE OF INFORMATION TECHNOLOGY

& MANAGEMENT
(Gwalior)

CASE STUDY

OF

FMCG SECTOR

SUBMITTED TO: SUBMITTED BY:

Dr. Deepali Singh Indarjeet Singh Rana (MBA -20)
Nishant Suyal(MBA – 31)
 CONTENTS

CASE NO. CASE NAME PAGE NO.

1. Dabur 3

2. Lifebuoy Swasthya Chetna” 4

3. Amul case study 5

4. ITC wills life style case study 6

5. Unilever case study 7

6. Parle Bisleri case study 9

7. Amway case study 10

8. Johnson & Johnson case study 12

9. 14
Nestle India limited case studies

10. Sunsilk Gang of Girls case study 16

11. Hershey Foods Corporation 18

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Dabur case study
Company profile
Dabur India Limited is the fourth largest Company in India with interests in Health Care, Personal
Care and Food Products. Dabur had a turnover of approximately Rs. 19 billion (approx. US$ 420
million) during the fiscal year 2005-2006, with brands like Dabur Amla, Dabur Chyawanprash,
Vatika, Hajmola & Real. The company's growth rate rose from 10% to 40%. The expected growth
rate for two years was two-fold. Dabur operates in more than 5 countries and distributes its products
worldwide

Abstract :
the case deals with the rejuvenation of brand with the customers it is the India s third largest FMCG
company that was struggling for breaking its image. So the company did a thorough analysis and
took some initiatives the initiatives were in the following areas
a. IT initiatives- installation of ERP system

b. Supply chain Initiatives

c. HR Initiatives

Dabur also de-merged its pharmaceutical business to come out as a pure FMCG player

LIFEBUOY CASE STUDY

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Company profile
Lifebuoy is a brand of soap containing phenol originally marketed by Lever Brothers in England
beginning in 1895. Popular for over 100 years, it is still available in the United States, through
specialty shops that import it through Jupiter Imports (UK) in England. Though Lifebuoy has gone
out of production in the U.S. and the UK, it is still being mass produced by Unilever in Cyprus (for
the UK, EU and USA). In India, it is the leading value brand there as well as in some other South
Asian and South East Asian countries like Pakistan, Sri Lanka, Bangladesh and Indonesia.[

Abstract:
Lifebuoy's “Swasthya Chetna” (LSC) was a five-year health and hygiene education program initiated by
Hindustan Lever Limited (HLL), the Indian arm of the fast moving consumer goods (FMCG) major,
Unilever. The program was formally launched in 2002, in eight states across India.
The objective of this program was to educate around 200 million people in rural and urban areas about the
importance of adopting good ‘health and hygiene'practices. The program spread awareness about germs
and their adverse effects on health, and how proper ‘health and hygiene'practices, such as bathing and
washing hands with soap could prevent diseases like diarrhea.

According to HLL, LSC was not a philanthropic activity, but a marketing program with a social
benefit. HLL sought to grow the Lifebuoy brand in India by attracting those consumers who never
used soap. In the process, the company sought to bring about a behavioral change by convincing
people to use soaps more frequently, thus creating more users for its brand. This program was also
seen as a successful case for public-private partnership.

IMPACT
On the occasion of World Health day, on April 7, 2006, the Minister of State for Communications
and IT, Government of India (GoI), Dr Shakeel Ahmed, released a special Lifebuoy “Swasthya
Chetna Postal Cover”. The Department of Post under the Ministry of Communications issued this
Special Postal Cover in recognition of the work done by HLL to increase awareness about health and
hygiene, through its Lifebuoy ‘Swasthya Chetna'

AMUL
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Company profile
Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India. It is
a brand name managed by an apex cooperative organisation, Gujarat Co-operative Milk Marketing
Federation Ltd. (GCMMF), which today is jointly owned by some 2.6 million milk producers in
Gujarat, India. Amul is the largest food brand in India and world's Largest Pouched Milk Brand with
an annual turnover of US $1050 million (2006-07) . Currently Amul has 2.6 million producer
members with milk collection average of 10.16 million liters per day. Besides India, Amul has
entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore,
Hong Kong and a few South African countries

Abstract:
Amul is the largest co-operative movement in India with 2.2 million milk producers organized in
10,552 co-operative societies in 2003-2004.

The country's largest food company, Amul, is the market leader in butter, whole milk, cheese, ice
cream, dairy whitener, condensed milk, saturated fats and long life milk.

Amul follows a unique business model, which aims at providing 'value for money' products to its
consumers, while protecting the interests of the milk-producing farmers who are its suppliers as well
as its owners. Despite being a farmers' co-operative, Amul has given multinationals a run for their
money.

IMPACT

1) It made the Amul the largest milk and milk product producer.
2) It started a total cooperative movement that gave an opportunity to earn to village people.

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ITC WILLS LIFE STYLE

Company profile
ITC Limited which previously stood for Imperial Tobacco Company of India Limited[, is one of
India's foremost private sector companies with a market capitalization of more than US $ 18 billion
and a turnover of US $ 4.75 billion. Rated among the World's Best Big Companies by Forbes
magazine, ITC ranks third in pre-tax profit among India's private sector corporations.

Abstract :
The caselet throws light on the two retail solutions that were used by ITC’s Wills Lifestyle business to
improve the supply chain in terms of improved service levels at retail stores and increased efficiencies
in manufacturing and distribution.

Issues:

» IT solutions for supply chain efficiencies

» Retail solutions to meet the multi-location requirements of a retail chain
» Benefits of supply chain integration

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 Unilever—A Case Study

Company profile
Unilever is a multi-national corporation, formed of Anglo-Dutch parentage that owns many of the
world's consumer product brands in foods, beverages, cleaning agents and personal care products.
Unilever employs nearly 180,000 people[ and had a worldwide revenue of almost €40 billion in
2005.

Unilever is a dual-listed company consisting of Unilever NV in Rotterdam, Netherlands and Unilever

PLC in London, England. This arrangement is similar to that of Reed Elsevier, and that of Royal
Dutch Shell prior to their unified structure.

ABSTRACT
This case considers key issues relating to the organization and performance of large multinational
firms in the post-Second World War period. Although foreign direct investment is defined by
ownership and control, in practice the nature of that "control" is far from straightforward. The issue
of control is examined, as is the related question of the "stickiness" of knowledge within large
international firms. The discussion draws on a case study of the Anglo-Dutch consumer goods
manufacturer Unilever, which has been one of the largest direct investors in the United States in the
twentieth century. After 1945 Unilever's once successful business in the United States began to
decline, yet the parent company maintained an arms-length relationship with its U.S. affiliates,
refusing to intervene in their management. Although Unilever "owned" large U.S. businesses, the
question of whether it "controlled" them was more debatable.

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Some of the central issues related to the organization and performance of multinationals after the
Second World War can be illustrated by studying the case of Unilever in the United States. Since
Unilever's creation in 1929 by a merger of British and Dutch soap and margarine companies, it has
ranked as one of Europe's, and the world's, largest consumer-goods companies. Its sales of $45,679
million in 2000 ranked it fifty-fourth by revenues in the Fortune 500 list of largest companies for that
year.

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PARLE-BISLERI

Company profile
Bisleri is a brand of mineral water in India. Bisleri has 60% market share in packaged drinking water
in India.

It is available in 8 pack sizes: 250ml cups, 250ml bottles, 500ml, 1 liter, 1.5 liter, 2 liter, 5 liter, and
20 liter. It's operations run throughout the subcontinent of India and is one of the leading Mineral
Water supplying companies in India. Currently Bisleri has 8 plants & 11 franchisees all over India.

Abstract-

In the early 1990s, Parle Bisleri Ltd's (Parle Bisleri's) Bisleri had become synonymous with branded
water and had a market share of 70%. In the late 1990s, Bisleri's market share began to erode with
new players entering the market. The new players also positioned their products on the purity
platform and Bisleri felt the need to differentiate itself from the crowd.

In 2000-01, Bisleri faced another challenge. The Cola majors, Pepsi and Coca-Cola and the
confectionery giant, Nestle, also entered the branded water market in India. The share of bisleri in
water share is declined to 51 %. Bisleri had to reposition itself to arrest its declining market share.

Solution
It took some initiatives like

1) Increased its product line and highly focused on bulk segment (5Ltr and 20ltr bottles).
2) Took initiatives in supply chain.
3) Create a distinct brand image of “pure and safe”.
4) Because of all of its effort, at present, bisleri having a 60% market share of mineral water.

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AMWAY
Company profile
Amway is a multi-level marketing, or network marketing company founded in 1959 by Jay Van
Andel and Rich DeVos. Based in Ada, Michigan, the company and family of companies under
Alticor reported sales of US$7.2 billion for the year ending December 31, 2007, marking the
company’s sixth straight year of growth. Its product lines include personal care products, jewelry,
electronics, Nutrilite dietary supplements, water purifiers, air purifiers, insurance and cosmetics.
Amway conducts business through a number of affiliated companies in more than ninety countries
and territories around the world.

ABSTRACT

“The biggest challenge for Amway is to convince the indifferent Indian consumers about the
world-class quality of Amway Products. The quality of the product is Amway's strength."

In the late 1990s, the global direct selling giant Amway had to contend with increasing doubts
regarding its survival in India. The company that had become synonymous with network
marketing or multi-level marketing the world over was beset with problems.

Though the company managed to rope in a substantial number of distributors, the attrition
rate was at an alarming high of 60-65%. Most of the products that the distributors bought,
they consumed themselves. Estimates put the percentage of self-consumption at almost 50-
60% of the total volume. Many people who joined in the initial frenzy returned the product
kits within the first month. Many people (5-8%)who joined in the initial frenzy returned the
product kits within the first month. only about 10% showed reasonably high levels of activity.
To top it all, Amway was burdened with an image that had little basis in fact. Its products
began to be perceived as being very expensive and meant only for the premium segment. This
was identified as the single biggest reason for the high attrition rate.

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Amway realized that like most direct marketing networks, it had hoped to leverage the global
promise of the lucrative business opportunity for its distributors. it started putting stickers on
its products, which clearly indicated the number of usages very clearly. Since, the distributors
are also not aware about the usage of Amway products very well so its help Amway to hold
the market.

It also took some supply chain initiatives and reduced the supply chain gaps

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JOHNSON & JOHNSON

Company profile
Johnson & Johnson is a global American pharmaceutical, medical devices and consumer packaged
goods manufacturer founded in 1886. Its common stock is a component of the Dow Jones Industrial
Average and the company is listed among the Fortune 500. Johnson & Johnson is known for its
corporate reputation, consistently ranking at the top of Harris Interactive National Corporate
Reputation Survey, ranking as the world's most respected company by Barron's Magazine and was
the first corporation awarded the Benjamin Franklin Award for Public Diplomacy by the U.S. State
Department for its funding of international education programs

Abstract
The case discusses in detail, ‘Camp Baby,’ an event organized by Johnson & Johnson (J&J), one of
the largest healthcare companies in the world that has over the years built up a reputation as a
marketing-savvy company. The company organized the event in order to build relationships with
mommy bloggers by interacting with them on a common platform. The three day event, held at J&J’s
headquarters in News Brunswick, New Jersey was not used as a platform to hard sell any of the J&J
products but to connect to a core group of customers, i.e. mothers. The case details the organization
of the camp, the events held during the camp and the benefits the participants and the company
derived from it. It also discusses the criticism the company received for organizing the event.

While some analysts appreciated J&J’s initiative to build better relationships with its target segment
by harnessing new media channels, others felt that it was nothing short of a public relations fiasco for
the company and that the case highlighted the challenge in building relationships with customers in
the digital age.

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Issues:

» Study the promotional strategies of Johnson & Johnson and the reasons for organizing the ‘Camp
Baby’ event.
» Analyze whether Camp Baby was able to achieve its objectives.
» Understand the issues and challenges in trying to build relationships with customers in the digital
age.
» Understand the changing media preferences in the digital age.

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Nestlé India Ltd. (NIL)

Company profile
Nestlé is a multinational packaged food company founded and headquartered in Vevey, Switzerland.
The company stock is listed on the SWX Swiss Exchange. It resulted from a merger in 1905 between
the Anglo-Swiss Milk Company for milk products established in 1866 by the Page Brothers in
Cham, Switzerland and the Farine Lactée Henri Nestlé Company set up in 1866 by Henri Nestlé to
provide an infant food product. Several of Nestlé's brands are known globally, including Maggi,
Thomy and Nescaf

Abstract:
Nestlé India Ltd. (NIL), the Indian subsidiary of the global FMCG major, Nestlé SA, introduced the
Maggi brand in India in 1982, with its launch of Maggi 2 Minute Noodles, an instant noodles
product.

With the launch of Maggi noodles, NIL created an entirely new food category - instant noodles - in
the Indian packaged food market. Because of its first-mover advantage, NIL successfully managed to
retain its leadership in the instant noodles category even until the early 2000s.

Over the years, NIL extended the Maggi brand to a variety of culinary products like soups, sauces
and ketchups, and cooking aids among others. However, these product extensions were not as
successful as the instant noodles. In 2005, NIL started offering a range of new 'healthy' products
under the Maggi brand, in a bid to attract health-conscious consumers.

This case looks at the various phases in the product life cycle of Maggi noodles in India. It talks
about the various measures taken by NIL to keep the Maggi brand fresh in the minds of Indian
consumers. The case also talks about the various extensions of the Maggi brand and tries to analyze
why only the sauces and ketchups category, among all the other product extensions, managed to
succeed.

It further discusses the measures taken by NIL to reposition Maggi as a 'health product'. The case
ends with a discussion whether NIL would be successful in sustaining this new image for Maggi in
the market.

Issues:
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» To understand the strategies undertaken by a major FMCG company to create and establish a new
product category.
» To understand the issues involved in sustaining the image of a popular brand.
» To study the issues involved in brand extensions
» To understand the strategies adopted by an FMCG major in repositioning a popular brand

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SUNSILK

Company profile
Sunsilk is the name of a brand of hair care products for women produced by the Unilever group. It
was launched in 1954 in the United Kingdom. By 1959, it was available in eighteen different
countries worldwide. Currently, Sunsilk products are available in over 50 countries throughout Asia,
The Middle East, North Africa and Latin America, where is known as Sedal.

Abstract:
This case discusses the online community-building initiatives of Indian FMCG major Hindustan
Lever Ltd (HLL, now, Hindustan Unilever Ltd) for its beauty shampoo brand, Sunsilk. HLL was one
of the largest spenders in the traditional advertising media. With the growing popularity of new and
emerging media like the Internet, especially among the Indian youth, HLL identified new marketing
communication programs that could capitalize on this trend. To keep the Sunsilk brand relevant to its
target group (young girls), HLL started an online social network and community called the Sunsilk
Gang of Girls (GoG). It was the first all-girl online community in India and quickly caught the
attention of the target group (TG) as it was promoted by HLL with a 360-degree media
communication blitz.
HLL continuously updated the content and added new features to GoG to keep it relevant to the TG.
It also took this online initiative to the ground with mall activation programs and participation in
college youth festival events.
Experts felt that HLL was rewarded for taking the risk of starting an online social networking site as
it got good brand recognition and could connect with the target group. The case also discusses the
issues and constraints faced by companies and marketers who want to target the youth in a rapidly
changing market environment like India. It also highlights the various opportunities and challenges
for media planners and advertisers in this changing environment.

Issues:

» Appreciate the importance of new and emerging media in view of the change in environment, and
media consumption behavior of the target audience
» Understand the issues and constraints in targeting the youth population in India in view of the
changing marketing dynamics
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» Understand the significance of using online communities in brand building and market
development
» Understand how online communities around a brand can be built and sustained over time

Hershey Foods Corporation

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Company profile
The Hershey Company known until April 2004 as the Hershey Foods Corporation and commonly
called Hershey's, is the largest chocolate manufacturer in North America.] Its headquarters are in
Hershey, Pennsylvania, a town permeated by the aroma of cocoa on some days, and home to
Hershey's Chocolate World. It was founded by Milton S. Hershey in 1894 as the Hershey Chocolate
Company, a subsidiary of his Lancaster Caramel Company. Hershey's candies and other products are
sold worldwide

Abstract:
The case examines in detail the reasons behind the failure of ERP implementation at the US based
Hershey Foods Corporation. In late 1996, Hershey began modernizing hardware and software
systems in the company. The company was running on legacy systems, and with the impending Y2K
problems, it chose to replace those systems and shift to client/server environment. As per the original
plan, it was to switch over to the new ERP system by April 1999. It chose three software vendors -
SAP, Manugistics, and Siebel for implementing different software modules. The project was running
as per schedule till January 1999, and when it came to the last leg of implementation, the company
faltered and could
Hard pressed for time, Hershey went in for Big Bang ERP implementation which led to several
problems pertaining to order fulfillment, processing and shipping. The retailers who ordered for
Hershey's products could not get them on time, even though the company had ample supplies
stocked at its warehouses. Hershey's revenues dropped by 12% during the third quarter of 1999
compared to the third quarter of 1998. The case explains in detail, the events leading to the failure of
ERP implementation and examines the reasons behind it.

Issues:

» Understand the process of ERP implementation in a large organization.

» Study the circumstances that led to ERP implementation failure at Hershey.

» Evaluate the role played by top management in ERP implementation.

» Examine the factors that lead to success or failure of ERP projects.

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