Sustainable Marketing

HUL incorporates sustainable marketing in all its brands, be it Tresemme or Knorr.

Some of the highlights of 2013-14 in promoting sustainability are: 

1. 58 million people reached through Lifebuoy Handwashing Programme since 2010.
2. 57.5 million people gained access to safe drinking water from Pureit globally, by end of 2013.
3. CO emissions per tonne of production in India reduced by 27%, water usage by 37% and waste by 84% compared to 2008.
4. In 2013, total 35 sites out of 38 sites became zero non-hazardous waste to landfills; an addition of five more sites compared to previous year.
5. Out of 38 HUL factories, 33 became zero discharge in 2013.
6. A total of 86 tea estates in Assam, Darjeeling and Tamil Nadu were certified 'Sustainable Estates' by the Rainforest Alliance™.
7. 80% of tomatoes used in Kissan Ketchup were from sustainable sources.
8. Shakti network strengthened taking the total number of Shakti Entrepreneurs(Shakti Ammas) to over 65,000 complemented by over 50,000 Shaktimaans.
   [Source: HUL sustainability report 2013-14]

REDUCE PACKAGING

In 2013, there was a significant reduction in HUL's packaging materials. A number of projects with a focus on design and material optimisation implemented across categories, resulted in reduction of around 1,700 tonnes of plastic and over 2,500 tonnes of paper.

TACKLE SACHET WASTE

HUL has evaluated different Pyrolysis technologies to recycle sachet waste. Pyrolysis offers a closed loop system which involves catalytic de-polymerisation of plastics into fuel. The fuel can be used in factories as furnace oil or can be used for similar industrial applications. 

REDUCE WASTE FROM OUR MANUFACTURING

The company has taken up several initiatives to reduce waste from manufacturing. These include better segregation of mix waste at source, projects on reduction of waste generations eg anaerobic biodigester, vermi-composting facilities, filter press across sites, co-processing at cement plant, recovering energy from waste & ETP load optimisation at major sites. All of

this has helped in achieving a reduction in total waste per tonne from manufacturing sites by more than 84% over 2008 baseline. More than 99% of total waste was recycled in

environment-friendly ways. In 2013, total 35 sites out of 38 sites became zero non-hazardous waste to landfills; an addition of five more sites compared to previous year.

REDUCING WATER USE IN  MANUFACTURING PROCESS

HUL has reduced water usage per tonne in our manufacturing operations by 37% compared to 2008 baseline. Various initiatives like recycling treated effluent for gardening, installing Reverse Osmosis (RO) technology at  various utilities, collecting & recycling of rain water, arresting major leakage and loss of water at our manufacturing sites led to this reduction. In 2013, three of the manufacturing sites in Bhuj, Khamgaon and Bengaluru became zero-discharge sites taking the total to 33 sites out of total 38 sites. During

the year, six more sites implemented rainwater harvesting, taking the total to 28 sites. The efforts have resulted in creating a potential of 371,000 kilolitres water per annum. Rainwater harvesting and use of RO for recycling effluent has helped these sites to reduce

fresh water abstraction by over 86,000 kilolitres. The factories at Amli and Doom Dooma adopted the rainwater harvesting and recycling model followed by  Goa where rainwater on the terrace area of the factory is collected and recycled for use in various processes in the factory.

HUL attempts at improving health and well being, reducing environmental impact and enhancing livelihoods

They improve health and well being by taking care of the nutritional value of their food products like sauces, jams, oils, soups etc.

They reduce environmental impact by using recyclable plastic, using energy efficient machinery, replenishing water 

They enhance livelihoods by engaging with farmers, empowering rural people to become entrepreneurs (Shaktimaan)

Sales Management in Tresemme

 Sales Promotion is marketing other than advertising, personal selling, and public relations. It is the short-term incentive that motivates consumers or members of the distribution channel to purchase a product which can be done either by lowering the price or adding value to a product. 

TRESemmé usually lowers the price of their hair care products to attract their target market, which is known as consumer sales promotion. 

TRESemmé's products for trade sales promotion would be targeted to their wholesaler's and retailers.

TRESemmé uses a premium/bundling for some of their products. For example, if a consumer buys a shampoo, there are deals where they can get a free conditioner along with it.  

Sampling is another thing that TRESemmé does with its products. They have small bottle of their gels, shampoos, conditioners, etc. and they give it to customers along with magazines, newspapers.

Point-of-Purchase Promotion is used at malls, retail outlets to create a differentiating factor and to make the product as striking as possible . 

There are several steps in the Selling Process knows as the sales cycle. TRESemmé:

1. Generates Leads
2. Qualifies Leads
3. Approaches the customer and probes needs
4. Develops and Proposes Solutions
5. Handles objections
6. Closes the sale
7. Follows up

Tresemme follows all these steps that is why it is one of the best selling shampoos in India.

B2B Marketing for Tresemme

  Business marketing (or B2B marketing) is the marketing of goods and services to individuals and organizations for purposes other than personal consumption. An example of this would be the sale of a PC to a college or university. 

 TRESemmé also engages in B2B because many salons carry TRESemmé products for use on customer's hair. This is a way of business marketing because the salon using TRESemmé's products. This is actually a great way to achieve business marketing.

Business marketing on the internet has to do with the use of internet to facilitate activities between organizations. This process is called business-to-business electronic commerce. There are a few websites that talk about this specifically for their target audience on the internet. Shampoo and hair-styling websites are a great source to find out more about TRESemmé's products. Supplying its products to E-stores like Flipkart etc are ways for B2B e-commerce.

Strategic alliance is an agreement between business firms. TRESemmé has an agreement to manufacturers and suppliers since their products are sold in drug stores and supermarkets. This is how TRESemmé makes money, by selling their products in many stores and earning money when someone buys the product. 

There are 4 major categories of business customers:

1.Producers (includes profit-oriented individuals and organizations that use purchased good and services to produce other products)- Examples, Coca cola selling concentrates to McDonalds to sell soft drinks.

2. Resellers (includes retail and wholesale businesses that buy finished goods and resell them for a profit)- Examples, Flour mills supplying flour to biscuit manufacturers

3. Governments (include thousands of government, state, and local buying units). Examples- Maggi soup powder being sold in big tins to Indian Railways

4. Institutions (includes schools, hospitals, colleges and universities, churches, etc.). 

When it comes to TRESemmé, this company follows the producers  category. It supplies shampoos to organisations such as Hotels and Salons.

Demand in a business is derived unlike a consumer demand. Derived Demand is used when organizations buy products to be used in producing their customers' products. When it comes to Purchase Volume, customers buy in much larger quantities than consumers, which can be put into customers who buy products from TRESemmé. TRESemmé's business products are known as supplies because they are consumable items that do not become part of the final product. Most of TRESemmé's products have relatively short lives and are inexpensive compared to other business goods out there.

Thus a very small, but significant portion of Tresemme's sales also comes from B2B marketing.

Segmentation, Targeting and Positioning

TRESemmé  sells products very well. The idea that influences these people or organizations are its product categories, since it owns different types of products in different categories, the market is more likely to buy the products because there are different varieties to choose from. 

 Within a market, a market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. Another process that TRESemmé's goes through is a market segmentation, which is the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups. All of these definitions make up a market.

                      Market segmentation helps marketers define customer requirements more effectively. TRESemme will be able to effectively sell products with the right market segmentation, markets can easily find what they exactly want and need. Let us look at Tresemme Hair Fall Defense, lets say a customer wanted to buy a smaller bottle of this product. The market segmentation should be able to help this customer because the shampoo will come in different shapes and sizes overall. To have a successful segmentation, brands must have these 4 important things: Sustainability (a segment must be large enough to warrant developing and maintaining a special marketing mix), identifiability & measurability (segments must be identifiable and their size measurable), accessibility (the firm must be able to reach members of targeted segments with customized marketing mixes), and responsiveness (markets can be segmented using any criteria that seem logical).

There are 5 basic segmentations that marketers follow. Geographic Segmentation: dividing markets by region of a country or world, market size, market density, or climate; TRESemmé follows this segmentation because they have their products all around the world for marketers to grab their attention and make more profits out of them. 

Demographic Segmentation: Segmenting market on the basis of  age, gender, income, ethnic background, and family life cycle; TRESemmé's products aim for marketers who were born in the Y generation because they tend to buy their products more other than the X generation and baby boomers. They also make their products cheaper than other brand names that sell similar products. 

Psychographic Segmentation: Deals with personality, motives, lifestyles, and geodemographics; this is when TRESemmé gathers information about people and this determines how they should sell their products and what products should they sell. 

Benefit Segmentation is the process of grouping customers into market segments according to the benefits they seek from the product; TRESemmé will examine what their customers require of the product and develop communication strategy accordingly.

Usage-Rate Segmentation divides a market by the amount of product bought or consumed; TRESemmé keeps track on which one of their products are having the most sales. 

TRESemmé's business market consists of 4 broad segments: producers, resellers, government, and institutions. 

TRESemmé's company characteristics is reasonable since they are available across all retail stores in India and many buyers prefer to purchase from local suppliers. 

TRESemmé's buying processes segments customers and prospective costumers on the basis of how they buy. This allows them to become better sellers for their markets.

After segmentation, the next task is to choose one or more target markets. TRESemmé deals with one specific target market because this way they can attract customers with a single marketing mix. 

TRESemmé's way of targeting is the concentrated targeting method. They select a specific consumer segment for targeting its marketing efforts. TRESemmé needs to know where they should position their products so that they create a place in the consumer's mind. 

Distribution Channels

HUL, the parent company of the brand Tresemme, has an elaborate distribution network. The products are distributed by a network of 4,000 redistribution stockists, covering 6.3 million retail outlets. The model is described as follows:

The rural distribution model is shown in the following diagram:

The evolution of HUL's distribution system is as follows:

Presently, HUL follows Geo Tagging to track its distribution and supply.