CRS on HUL

7/30/2019 CRS on HUL

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Company review on

Presented byA.Aravind Sai Prasad (20089)D. Ganesh (20098)A.Veda(20095)

J. Sasidhar (20077)


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INTRODUCTION

In 1931, Unilever set up its first Indiansubsidiary, Hindustan VanaspatiManufacturing Company, followed by LeverBrothers India Limited (1933) and United

Traders Limited (1935). These three

companies merged to form HUL in November1956.

Hindustan Unilever Limited (HUL) is India'slargest Fast Moving Consumer Goods

Company with a heritage of over 75 years inIndia and touches the lives of two out ofthree Indians.

With over 35 brands spanning 20 distinct

categories such as soaps, detergents,


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VIS

ION OF THECOMPANY


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74.

3%

CONTRIBUTION TODIFFERENT SECTORS


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PERSONAL CARE


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TOILET SOAPS BY

HUL

HUL is the market leader

in the soap segment inIndia


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Competitors of HUL SOAPS

Lux

Rexona

Breeze

Lifebuoy

Santoor, Chandrika

Cinthol, MysoreSandal

Godrej no. 1, Nirma

Dettol

HUL brandsCompetitorsbrands


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Competitors of HUL SOAPS

Pears

DoveHamam

Liril

Santoor, Savlon

Camay

Margo

Cinthol

HUL brandsCompetitors brands


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The HUL Hair Care


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Competitors of HUL Hair Care

Sunsilk

Clinic Plus

Dove

Pantene

Head &Shoulders

LOreal, Garnier


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segment Of

HUL Oral Care


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Competitors of HUL Oral Care

Pepsodent

Close Up

Colgate

Meswak

Dabur Red

Anchor


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HUL COSMETICS


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Competitors of

Revlon, Maybelline, LOreal

Competitors of

Nivea, Charmise


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HUL FOOD BRANDS

TEA Brooke Bond Lipton

COFFEE Brooke Bond Bru


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FOOD Kissan Annapurna Knorr

ICE CREAM Kwality Walls


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HUL LAUNDRY CARE


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COMPETITORS

SURF EXCEL: ARIEL

WHEEL: NIRMA

RIN:TIDE


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Other products


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MARKETING

STRATEGIES OFHUL

STRA

TEGIE


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MARKETING STRATEGIES OFHUL FOR URBAN INDIA

Adopted Total Productive Maintenance(TPM)

to meet zero error, zero loss.

Focuses on short supply chain for distribution.

To meet the every needs of people everywhere.

Also uses Direct selling channel, franchisee to reacheveryone e.g. Aviance, Ayush.


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For long term benefits, HUL started ProjectStreamline in 1997.

MARKETING STRATEGIES OFHUL FOR RURAL INDIA

Project Shakti, partnership withSelf help groups of Rural women &covers 5000 villages in 52 districts

in different states.

Appointed 6000 Sub-stockists that

directly covers about 50,000 villages &250 million customers.

Integrate Economic, Environment & Socialobjectives with Business agenda.


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Promotion Strategy

This strategy wasused at village tovillage basis.

The first step was the usage ofaudio- visual publicity vans. This

publicity vans were covered bybeautiful banners, this bannerswere embossed with the productphotos.


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vThe promotion strategy is to do

door to door marketing, & This iswell designed, To do door- to-door marketing the marketer

employed the young local youthswho can communicate with ruralpeople in the local language.

The formal media used tocommunicate the product was

T.V, radio ,cinema ,printproportionately depending upon

their reach and their influence


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v

The games used were:

v Spotting the right price.

v Match the pairs.

v Turn the wheel.

This games were used to entice the people and pullthem to Colony the small place between thehouses so as to do mass marketing as much aspossible.


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THEIR MARKETING

STRATEGY Low price competitive product Try to cover all section of consumer

available in the market.

Focus more on Sub urban marketing Focus area home care , personal

care , Food.

They promote the Brand name up tothat level ,that the product is recognizeby its brand name . Example Vim ,Lakme , Lux.

Price of commodity may always stay in


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Continued..

HUL observed India very closely , theiris a ring of truth to its vision statement toearn love & respect of Indian by making

a real difference to every Indians.Indians have close connection withbrands like hamam , lifebuoy , daldaetc.

Rural marketing


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Major challenges

Inflation reducing profit

Consumer behavior

Competition in core strategyGlobal exposure

Help to improve health n nutrition


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Segmentation

HUL is the largest FMCG company. HULsproducts are now in 2 hands out of 3hands of India.

The customer of HUL products is everyone. Starting with child, youth to old ageas well.

Women are fond of the product of HUL. Allproduct are available for womens needs& desires

So, HUL is targeting as a whole for its

product.


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Distribution system

HUL's products, are distributed through anetwork of about 7,000 redistributionstockists covering about one million retail

outlets. The general trade comprises grocery

stores, chemists, wholesale, kiosks andgeneral stores.

Company provides tailor made services toeach of its channel partners.

HUL is using the point of purchase

method for much higher level of direct


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Market share

Market Shares of Soap 60%.

Market Shares of Food Brands 70%.

Market Shares of Oral Products 36%.

Market Shares of Household Cares 62%.

Market Shares of Personal wash 60%.

Market Shares of Skin Care 53%.


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SWOT AnalysisStrengths:

Strong brand portfolio, price quantity & variety.Innovative Aspects.

Presence ofEstablished distribution networks in both

urban and rural areas.

Solid Base of the company.

Corporate Social Responsibility(CSR)Weaknesses:"Me-too" products which illegally mimic the labels andbrands of the established brands.Strong Competitors & availability ofsubstitute products.Low exports levels.High price of some products.High Advertising Costs.


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Opportunities:

Large domestic market over a billion populations .

Untapped rural market.

Changing Lifestyles & Rising income levels, i.e. increasing per capitincome of consumers.

Export potential and tax & duty benefits for setting exports units.

Threats:

Tax and regulatory structure.

Mimic of brandsRemoval of import restrictions resulting in replacing of domesticbrands.

Temporary Slowdown in Economy can have an impact on FMCG

Industry.


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Competitors of hul


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Edge over Competitors

Unilever, in its worldwide operations, strives to bea multi local multi national. Working since 1912.

Reflected national priorities over the years andremained committed towards India.

Large market capitalization and Product Variety.

Good Company policies such as :-

Developing and using relevanttechnology

Generating productive employment

Stimulating industrialization and

dispersing its benefits.


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HUL Financials

Categories of Shareholders as on 31st March 2012

% of Holdings

Top 10 Shareholders as on 31st


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Top 10 Shareholders as on 31stMarch, 2012 (Other thanpromoters)

1.Life Insurance Corporation of India2. Oppenheimer Developing Markets Fund

3. The New India Assurance Company Limited

4. Bajaj Allianz Life Insurance Company Limited

5. Aberdeen International India OpportunitiesFund (Mauritius) Limited

6. Aberdeen Global - Emerging Markets EquityFund

7. Vanguard Emerging Markets Stock Index Fund

8. General Insurance Corporation of India


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Year on year Hindustan Unilever Ltd grewrevenues 16.86% from Rs. 20,278 crores to

23,696 crores


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Net income improved 21.54% fromRs.2296 crores to 2,791 crores.

Year on year, both dividends per share and earnings per share


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Year on year, both dividends per share and earnings per shareexcluding extraordinary items growth increased 15.38% and22.75%, respectively. The positive trend in dividend paymentsis noteworthy since only some companies in the Personal &Household Prods. industry pay a dividend


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0

2

4

6

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10

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HUL Share

Fiscal Year ending march 31

Rs


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0

2

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6

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10

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Return On Capital Employed(%)


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Summary

For the yearending March


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EMPLOYEE STOCK OPTION PLAN(ESOP)

The 2006 HLL Performance Share Scheme wasintroduced as a measure to reward and motivate

employees as also to attract the talent and retain thekey employees.

On a review of the operating experience of thesaid scheme and bearing in mind the charges in theglobal trends on management rewards, it is proposedto revise the approach of award of share optionsunder the scheme by adopting a revised 2012 HUL

Performance Share Scheme.


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CODE OF BUSINESS PRINCIPLES

People, integrity, and values have always been central to HUL

three basic principles

Formation of trust and respect

Building mutually beneficial relationships

Engaging in responsible management practices

1DIVERSITY


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HUL is committed to managing diversity in their working environment .

It aggressively pursue the target of increasing the proportion of women in

the management cadres (18%)

It has a number of gender friendly policies such as maternity benefit ,career break ,

flexi working ,agile working from remote location

HULs formal employment and fitment policy absolutely prohibits gender based

discrimination

It is a merit driven organization and this is reflected in the policies concerning

recruitment ,training and promotion which ensure that the best person gets the job

,independent of subjective considerations

CHILD LABOUR


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CHILD LABOUR

HULs recruitment policy doesn't permit engagement of child labor

directly or indirectly. Regular audits ensure compliance at their own sites

and at third party locations/sites.

FORCED OR COMPULSORY LABOUR

The Employee Relations Policy and business principles adopted by the

company prohibit such practices and this is upheld in letter and spirit

TEAMWORK AND LEADERSHIP

Teamwork is everyone's focus

Leadership is everyone's responsibility

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EMPLOYEE ENGAGEMENT

HUL maintain good communication channels with employees through

company based information and consultation procedures.

HUL have several processes instituted to ensure a two-way communication

channel.

In 2009, they began an employee engagement programme to ensure that

employees are involved in Unilever's vision and plans for the future

YOUNG MANAGERS LUNCH WITH CEO

GLOBAL PEOPLE SURVEY

UR SAY

HAMARA

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PERFORMANCE MANAGEMENT

Individual progress is important. That's why they invest a lot of time & effort

in supporting employees to perform well & in building their capabilities.

Every person gets a performance and capability card. This is an e-card, which they

can download it, which tells them everything they need to know, how they are

rated, whether they are a lister' (a company phrase for fast-track leaders), which

box of the matrix they are in, what is their potential, what is their likely next job,

what does the company think about your potential, what is the kind of development

plan that they have So every person has clarity, where he or she stands. This is

shared transparently.

1REWARDS AND BENEFITS


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REWARDS AND BENEFITS

HULs reward philosophy is to provide market competitive salary and benefits

with a strong linkage between performance and pay. Accordingly, their overall

reward package includes

- Fixed Salary that is competitive with peer companies

- Variable Salary that is linked to company and individual performance

- Equity compensation (at eligible levels) that is linked to long term (3 year)

company performance and individuals potential.

- Benefits and Perquisites aimed at providing choices.

- Retirement benefits that are market competitive.

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FACILITIES FOR FULL-TIME EMPLOYEES

basic access to above-minimum wages,

subsidized canteen facility,

safety training and equipment,

safe infrastructure and washroom facilities irrespective of contractual status.

Certain benefits extended as a result of collective bargaining agreements are

available only to those groups of workmen covered by the agreements

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TRAINING AND DEVELOPMENT

Learning is an integral part of life at Unilever & there are many ways in

which you can develop your skills, both professional & personal.

On the job

Professional skills

Continual update

Personality development

HUL is a business where talented individuals can go as far & as fast as their

ambition & ability take them.

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GROOM YOUNG TALENT

The BLT program is an extremely comprehensive training module, designed to

groom young talent for taking up challenging roles ahead. They get in-depth

functional as well as cross-functional exposure through various stints, travel

through the length and breadth of the country and outside, understand company

values and ways of working while they undertake live projects in each stint.

There are senior coaches, mentors and tutors assigned to each intern, ensuring

that the learning objectives of each stint are met, and suggesting any course

correction which may be required for a particular intern. All this ensures that

young talent is honed to take up the challenging assignments in the later stages

of their career.

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Awareness campaigns on hygiene

Child immunization camps

Free eye check ups

Anti-tobacco education

Anti-alcoholism camps.

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Conclusion

With its long and luminous history HUL is Indiastrue pride.

It is a company which the customers in rural aswell as urban India relate to. This explains the

deep penetration of HUL in Indian market.

The future for HUL is demanding newer and highlevel innovations so as to cope up with increasingcompetition.

However HUL is well equipped with all what isneeded of this Indian Giant.

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CRS on HUL

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