FINAL PROJECT OF HULLLLLLLLLL.docx

8/10/2019 FINAL PROJECT OF HULLLLLLLLLL.docx

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PROJECT REPORT ON

MARKETING STRATEGY OF HUL

MASTERS OF COMMERCE DEGREE

SEMESTER- I

ACADEMIC YEAR:2014-15

SUBMITTED BY

MISS. POOJA MAURYA

ROLL NO: 17

N.E.S. RATNAM COLLEGE OF ARTS, SCIENCE AND COMMERCE,

N.E.S. MARG, BHANDUP (WEST), MUMBAI-400078


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PROJECT REPORT ON

MARKETING STRATEGY OF HUL

MASTERS OF COMMERCE DEGREE

SEMESTER- I

ACADEMIC YEAR:2014-15

SUBMITTED BY

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF MASTER

DEGREE OF COMMERCE

MISS. POOJA MAURYA

ROLL NO: 17

N.E.S. RATNAM COLLEGE OF ARTS, SCIENCE AND COMMERCE,N.E.S. MARG, BHANDUP (WEST), MUMBAI-400078


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N.E.S. RATNAM COLLEGE OF ARTS, SCIENCE

AND COMMERCE,

N.E.S. MARG, BHANDUP (WEST), MUMBAI- 400078

CERTIFICATE

This is to certify that theproject report on MARKETING STRATEGY OF

HUL is bonafide record of project worked done by MISS. POOJA MAURYA

submitted in partual fulfillment of the requirement of the award of the Master of

Commerce Degree University of Mumbai during the period of his/her study in theacademic year 2014-15

INTERNAL EXAMINER:

EXTERNAL EXAMINER:

PrincipalMrs. Rina Saha


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DECLARATION

I hereby declare that this Project Report entitled MARKETING STRATEGY OF HULsubmitted by me for the the award of Masters Of Commerce Degree; University of Mumbai is a

record of Project work done by me during the year 2014-15. this is entirely my own work.

NAME: POOJA MAURYA Roll No. 17 Signature

Place: Mumbai, Bhandup (W)

Date:


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ACKNOWLEDGEMENT

I owe a great many thanks to great many people who helped and supportedme doing the writing of this book.

My deepest thanks to lecturer, MISS. JANHAVI RUO of the project for

guiding and correcting various documents of mine with attention and care. She/ he

has taken pains to go through my project and make necessary corrections as and

when needed.

I extend my thanks to the principal of NES Ratnam College of Arts Scienceand Commerce, Bhandup (w), for extending her support.

My deep sense of gratitude to Principal Mrs. Rina Saha of NES Ratnam

College of Art, Science and Commerce for support and guidance. Thanks andappreciation to the helpful people at NES Ratnam College of Arts, Science and

Commerce , for their support.

I would also thank my institution and faculty members without whom this

project would have been a distant reality. I also extend my heartfelt thanks to my

family and well-wishers.

Candidate Name: POOJA MAURYA


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INDEX

RS.NO. TOPICS PAGE NO.

1 Introduction 72 Mission and vision of HUL 8

3 Achievement of HUL 9-11

4 Strategy as a whole 12

5 Marketing strategy2009-10

- Brands & Innovation

- Market place

- Continuous Improvement

13-16

6 Marketing strategy 2010-11-

Brand & Innovation

- Market place


17-23

7 Marketing strategy2011-12

- Brands & Innovation

- Market place


24-32

8 Conclusion 33-34

9 Bibliography 35


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HINDUSTAN UNILEVER LIMITED

Introduction

Hindustan Unilever is India's largest Fast Moving Consumer Goods Company.

They meet everyday needs of millions of Indians, right from the morning cup of

tea to brushing at bedtime. Their brands touch the lives of more than 700 million

Indians.

TYPEPublic Company

TRADED ASBSE:500696 BSE sensex constituent

INDUSTRYConsumer Goods

FOUNDED1932

HEADQUARTERSMumbai,Maharashtra,India

KEY PEOPLEHarish Manwani and Nitin Paranjpe

PRODUCTSFoods,Beverages,cleaning agents and Personal Care Products

REVENUERs.22116 crore

NET INCOMERs.2691 crore

EMPLOYEES16500

PARENTUnilever Plc (52%)

WEBSITEhttp://www.hul.co.in/
http://www.hul.co.in/http://www.hul.co.in/http://www.hul.co.in/http://www.hul.co.in/


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MISSION

We Work to create a Better future everyday.

We help people feel good, look good and get more out of life with brands and

services that are good for them and good for others.

We will inspire people to take small, everyday actions that can add up to a big

difference for the world.

We will develop new ways of doing business with the aim of doubling the size of

our Company while reducing our environmental impact.

Vision

Unilever is a unique company, with a proud history and a bright future. We have

ambitious plans for sustainable growth and an intense sense of social purpose


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Achievement of HUL

Winning with Brands & Innovation

Six of our brands (Lux, Lifebuoy, Closeup, Fair & Lovely, Clinic Plus and

Sunsilk) featured in Top 15 list in Brand Equitys Most Trusted Brands Survey.

Hindustan Unilever Limited (HUL) was awarded the CNBC AWAAZ StoryboardConsumer Awards 2011 in three categories.

FMCG Company of the Year

The Most Consumer Conscious Company of the Year

The Digital Marketer of the Year

HUL won the Golden Peacock Innovative Product Award for Marvella RO

HUL was identified the sixth most innovative company in the world in a rankingpublished by Forbes magazine.

HUL also won a Peoples Choice Award and special TAM award for TV

innovation.

HUL won the Rolta Corporate Award for the top Indian Company in the FMCGsector at an awards ceremony organised by Dun & Bradstreet.

HUL won 5 EFFIE Awards which were organized by the Ad Club of Bombay.

HUL bagged 6 awards (1 Gold, 3 Silvers and 2 bronze) across categories at the

EMVIES Awards.

Winning in the Market Place

HUL was awarded for Exceptional supplier performance by Bharti Walmart.

Supplier of the Year: Retail Format

Supplier of the Year : Cash & Carry Format

Supply Chain Excellence : Cash & Carry Format

Supplier of the Year for CSR / Sustainability


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HUL received TESCO Value Award for best in class execution of the Joint

Business Plan.

Winning through Continuous Improvement

HUL was awarded the FMCG Supply Chain Excellence Award at the 5th Express,Logistics & Supply Chain Awards endorsed by The Economic Times along withthe Business India Group.

Doomdooma factory won the Gold Award in the Process Sector, Large Business

category at The Economic Times India Manufacturing Excellence Awards 2011

Winning with People

HUL was ranked the No.1 Employer of Choice for students in the annual Nielsen

B-School Survey. In the survey, HUL retained the Dream Employer status for the

3rd year running and continues to be the top company considered for applicationby B-School students.

HUL was awarded the National Award for Excellence in Corporate Governance,2011 by the ICSI.

HUL received the Dream employer of the year Awards presented by UTV

Bloomberg.

Fortune India featured Indias most admired companies wherein Hindustan

Unilever was ranked at No.2.

HUL was recognised as the Best Employer Brand in Asia at the Asias Best

Employer Brand Awards 2011.

HUL ranked sixth in the list of Global Top Companies for Leaders 2011 Study

Results announced by Aon Hewitt, The RBL Group and Fortune.

HUL was awarded the The Top 5 India Companies in Corporate Governance byIR Global Rankings for 2011.

HUL received the National Award for Significant Achievements in EmployeeRelations by the Employee Federation of India for the Pan India category.

Sustainability

HUL has won the Asian Centre for Corporate Governance and Sustainability

Awards in the category Company with the Best CSR and Sustainability Practices.


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Our instant Tea Factory, Etah bagged the second prize in tea category for Energy

Conservation from Ministry of Power, Govt. of India.

HUL won the prestigious Golden Peacock Global Award for Corporate SocialResponsibility for the year 2011.

HULs Andheri campus received certification of LEED India Gold in NewConstruction category, by Indian Green Building Council (IGBC), Hyderabad,

under license from the United States Green Building Council (USGBC)

The Orai, Etah and Chhindwara factories were selected as winners of theprestigious Srishti Good Green Governance (G Cube) Award 2011 in the Process

Non-metallic category.

Chiplun factory received the CII Award for the efforts being taken to enhance

Safety & Health initiatives.

HUL won the third prize at the prestigious FE-EVI Green Business Leadership

Awards 2010-11 in the low energy intensive sector category.

HUL (Khamgaon) was declared winner of the Gold Award in FMCG Sector foroutstanding achievement in Safety Management.


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STRATEGY AS A WHOLE

It is this relationship with our consumers that we would like to build upon and

strengthen. We will continue to straddle the consumer price pyramid to meet the

needs and aspirations of diverse consumers across India. Our stated strategy is togrow our business competitively, profitably and sustainably. The key pillars to

achieving this are:

Brands and innovation

Market place

Continuous improvement


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MARKETING STRATEGY 2009-10

Stated strategy is to grow our business competitively, profitably and sustainably.

The key pillars to achieving this are:

Brands and innovation

Market place

Continuous improvement

BRANDS AND INNOVATION

Brands and innovation are at the heart of everything they do. Their believe that

brands remain fresh, young and relevant if they are constantly innovating behind

them. Innovation in terms of products, propositions, communication and even

media deployment. As incomes and aspirations change, consumer habits, attitudes

and behaviour change too. This constant change is something that are obsessed

about. An obsession to ensure that their portfolio of brands is evolving

continuously to exploit these changes.

To do this successfully, consumer understanding is vital. They are

constantly observing where and how consumers shop for and use our brands.

It is this undying curiosity that enables them to be clear about what brands need to

do. They use this clarity to shape innovation programme by developing

products and solutions that are relevant for consumers in India. They leverage

Unilever's global technology expertise and the research and development

capabilities in India to bring innovative products that meet the needs of

consumers within India.

Some of their major innovations this year have been: Pure it Compact-in-home

water purifier an affordable safe drinking water solution for low-income

consumers priced at Rs. 1,000, Knorr Soupy noodles providing wholesome

nutrition to children's fun snacking moments, Brooke Bond Sehatmand tea


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offering combined benefits of health with immunity for low-income rural

consumers and the launch of Cif multi -purpose cleaner .

Equally, there have been several innovations on their existing big brands that

delivered significant superior product and consumer experience. These includedthe relaunch of Lux, Wheel, Clinic Plus, Hamam, Liril and Pears.

MARKET PLACE

The biggest opportunity lies in growing the size of their market throughinnovations and activities that drive market development. Towards this end, They

will further strengthen and broaden their relationship with customers working

together on areas of mutual benefit such as consumer research, shopper behaviour

and merchandising. Outstanding customer service and great in-store execution will

be key to sustain winning relationships with customers and to grow markets.

While General Trade will continue to be the primary

channel for distribution addressing diverse consumers across both urban and rural

markets, Modern Trade is an emerging channel for the future and winning in

this channel is one of the key priorities for them. They invested ahead of time to

build capabilities to serve their Modern Trade customers better while at the same

time partnered with them to win with shoppers at the point of sale.

Distribution has always been a competitive advantage for them. They are further

building on this by significantly increasing their direct coverage while also

improving the quality of coverage. They have deployed an end-to-end

technology solution which helps reduce inventory cycles while enabling optimum

service

levels. All their salesmen are equipped with hand-held devices which help to

improve on-shelf availability of their products while also building assortment at

individual store level. Similarly, their merchandisers have been equipped with


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hand-held devices to improve in-store display of their products so that products

are top-of-mind whenever a shopper makes a purchase. This year , they rolled

out a unique and innovative concept of 'Perfect Stores' as part of our endeavor

to win with consumers at the point of sale.

Project Shakti represents a unique and unmatched rural distribution model and

offers us tremendous opportunities in accessing rural consumers. They intend to

further leverage the Shakti network to significantly enhance our direct

distribution coverage in rural markets. This will not only extend their presence in

'difficult-to-reach' stores in rural areas but also strengthen the Shakti network.

CONTINOUS IMPROVEMENT

Delivering competitive, profitable and sustainable growth requires a philosophy of

continuous improvement. This means being fast and flexible in the supply chain

while keeping costs competitive. It also requires them to make

the most of their scale and aim for the best return on every rupee spent.

Continuous improvement is key to developing a customer and

consumer-led, agile value chain. In this value chain, they have tremendous

opportunity for improving efficiencies by leveraging their scale. They are

already doing so in our supply chain in the area of procurement and rapid

deployment of appropriate technologies. This has enabled reduction in

inventories, improved product freshness and time-to-shelf, which has resulted in

significant reduction of working capital. They prioritise speed and flexibility

in their supply chain to deliver growth. They are doing this through simple ideas.

For example, in some of their detergent factories they are running 'twin track'on single production lines. This has helped them to nearly double their

production thus enabling better customer service while improving operating

efficiencies. Apart from this, today most of their production lines have

developed the capability of quick changeovers to meet the market demand.


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Their effort is to continuously reduce business waste and eliminate losses in

their supply chain using TPM as a key enabler . The savings generated are

ploughed back into our products. They continue to drive their

supply chain to deliver top-quality products with world class service at a

competitive cost.

Return on marketing investments (ROMI) is another area where they drive

continuous improvement. ROMI is about maximising the effectiveness of our

advertising, promotional and trade investments. They have developed advanced

marketing mix modelling techniques that allow them to assess all the marketing

levers to drive growth and superior yields from marketing investment. For

example, they have identified the media elasticity of each of their brand which

helps them to optimise their advertising spends.


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Brands and innovations are the lifeblood of their business. Their success in the

market rests on how they deploy these assets. Through their brands we keep pace

with changes in consumer lifestyles and aspirations at all income levels. They rely

on consumer insight and the use of breakthrough technology to deliver bigger and

better innovations into the market faster, supported by the very best marketing.

Their aim is to give consumers an unbeatable product experience. They areinvesting in their formulations and constantly assessing their product performance

in order to drive consumer preference in blind product tests. They are doing this

both for their innovations and for their existing mixes.

Some of their key product innovations in 2010-11 have been: Rin detergent

powder that now comes with a patented technology that promises better whiteness,

Dove Shampoo in superior packaging, Ponds Dreamflower talc in a new fragrance

and Brooke Bond Sehatmand, which delivers vitamins in tea.

This year they entered new product categories with the launch of Lakme Skin

Lightening Compact, Cif surface cleaners, Sure anti-perspirant deodorant, Fair &

Lovely anti-marks eraser pen, the Ponds Gold Radiance range in Home and

Personal Care business.

In the Foods business, they entered new categories through offerings such as

Kissan Nutrismart in the malted food drinks space, Kissan Soya in the juice and

Kissan Creamy Spread in the spread segment. They are also in the process of

strengthening our presence in the services business through expansion of LakmBeauty Salons and Swirls ice-cream parlours and have rolled out the BRU


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world caf on a pilot basis. Great brands are also built by great communications.

Connecting emotionally with customers and educating them has often proved to be

a game changer.

Surf Excel encourages mothers to let their children have fun naturally andspontaneously. Lifebuoy educates consumers in the simple task of hand-washing

that can help avoid life threatening diseases. Pepsodent brings back little joys to

the task of brushing for kids. Red Label Tea opens a plethora of health benefits for

its consumers. They created a special 7 p.m. soup time with Knorr Soups.Great

products, superior innovation and effective marketing are essential for building

world-class brands. Throughout their history, they have been at the forefront in

developing innovative and impactful ways to build their brands.

MARKET PLACE

In 2010-11, They built on their ongoing innovations and activities to drive market

development. Outstanding customer service and great in-store execution helped us

sustain winning relationships with customers. They have restructured their front-

end selling system through a number of carefully crafted steps. They streamlined

the footprint of all their categories to ensure they can all be

sold at every store. This streamlining has led to a sharp increase in the distribution

of our brands. They also developed a specialist sales system with dedicated

resources for top-end skin care and cosmetic products.2010-11 saw many new

initiatives for distributors.

A tool has been developed to evaluate each distributors performance and reward

them accordingly for their achievements. It also gives managers of the Company

an avenue to review each distributors performance, discuss plans for the future

with them and help them reap greater benefits.

Next-generation technology deployed in 2010 has yielded significant execution

improvement and translated into business benefits in urban markets. The process

has been extended to rural markets as well.


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Besides, the technology is now supported with improved back-end analytical

models for sharp recommendations and intelligent, scientific and outlet-specific

execution tasks that help improve on-shelf availability and hence success at every

outlet. The on-shelf availability is supported with extensive merchandising and

visibility. The programme has tripled in the scale of operations, is significantlymore reliable, well-managed and measurable, thus improving the in-store presence

of our products.

In 2010-11, Modern Trade continued to be the fastest growing channel in the

market and winning in this channel is one of the key priorities for the Company.

The Company has partnered with customers on several important initiatives and

worked towards developing and building categories of the future.

In addition, execution and driving up on-shelf availability remains a key focus

area. These initiatives have resulted in HUL corporate shares going up in the

channel over the last two years and HUL being recognised as the Supplier of the

Year by key retailers. We also embarked on an extremely ambitious project to

further increase our distribution, which has also been a key competitive advantage

for us. Based on coverage information and extensive data mining, new markets

were identified in both urban and rural.

In 2010-11, the Company extended its relationship with Shakti and took the

initiative to the next level through Shaktimaan. Project Shaktimaan enrols an

unemployed or under-employed male member of a Shakti family to sell their

products in the surrounding villages. The initiative enhances two aspects

simultaneouslylivelihood opportunities of the Shakti family and the quality and

depth of the distribution of HUL products.

The outcomes have been tangible and manifold:

Leading market development

Establishing suitable livelihood for the under-privileged

Creating a self-sustaining business model

Accessing markets beyond the reach of traditional distribution models


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By the end of 2010, there were more than 23,000 Shaktimaan representatives going

to villages across India. Shakti Programme has helped in tripling the rural footprint

by reaching out to increased outlets. The project is supported with centralised

tracking of stores along with the quality of coverage to deliver sustained sales


Delivering competitive, profitable and sustainable growth requires a mindset of

continuous improvement. This means being fast and flexible in the supply chain

while keeping end-to-end costs competitive. It also requires them to make the most

of our scale and aim for the best return on every rupee spent.

Continuous improvement is key to developing a consumer-ledand customer-led, agile value

chain. In this value chain, they have always explored opportunities for improving

efficiencies in various forms. On an ongoing basis, they continuously raise the bar

to remain competitive on all fronts. They have been doing so across our supply

chain in the area of procurement, make and deliver, through the following drivers:

1.

Leveraging our global scale and knowledge to make our supply chain most

competitive. Regular benchmarking with global and local competitors is a

key element of this process.

2. Reduction in inventories and reduced time-to-shelf improves our product

freshness and deliver superior consumer value.

3.

Prioritising speed and flexibility in their supply chain to deliver growth

4.

Driving TPM to continuously reduce business waste and eliminate losses in

our supply chain.

The efficiencies generated from the above initiatives are ploughed back into

enhancing their product offerings. They continue to drive their supply chain to

deliver top-quality products with world class service, at a competitive cost.


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Return on marketing investments (ROMI) is an area where they have stepped up

focus in recent times. ROMI is about maximising the effectiveness of our

advertising, promotional and trade investments. They are deploying varioustechniques that allow us to assess all the marketing levers to drive growth and

superior yields from marketing investment. The learnings from the past

investments are being deployed to improve the effectiveness of future activities.

All marketing costs and assumptions are evaluated and savings are derived by

stopping non-productive activities or driving better efficiencies on the planned

spends.

Unilever Sustainable living Plan

They have ambitious plans to grow the Company. But they recognise that growth

at any cost is not viable. They have to develop new ways of doing business which

will decouple our growth from our environmental impact while increasing the

positive social benefits arising from their activities simultaneously. The Unilever

Sustainable Living Plan, launched globally in 2010 by their parent company

Unilever, is the blueprint for doing this. It is not a new concept for Unilever and

for its operations in India. They have long been working on our impact on societyand the

environment. One example is their work to improve the nutritional quality of their

products. Nutrition Enhancement Programme was a cross-category benchmark

developed by Unilever Food & Health Research Institute, based on international

dietary guidelines.

HUL introduced this programme across key food brands in India to reduce thelevels of unhealthy ingredients such as trans-fat, saturated fat, salt, and sugar.

Another example is the progress HUL has made in reducing CO2 emissions from

energy and water in the factories. Measured per tonne of production, since 2004

they have achieved reductions of 29% in CO2 from energy and 36% in our use of

water in 2010.


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The Unilever Sustainable Living Plan brings together all the work Unilever has

been doing globally and at the same time sets many new global targets to enable it

to achieve its growth ambitions sustainably.

The plan sets out over 50 social, economic and environmental global targets andthree big goals for Unilever to achieve by 2020 globally. The global targets are

wide ranging and take into account impact across the value chain.

The Unilever Sustainable Living Plan will result in three significant outcomes by

2020 globally:

Help more than a billion people take action to improve their health and well-

being.

Halve the environmental impact of the making and use of Unilever products.

Enhance the livelihoods of thousands of people in Unilevers supply chain.

The Unilever Sustainable Living Plan is the right thing to do for people and the

environment. But it is also right for Unilever: the business case for integrating

sustainability into our brands is clear and persuasive.

A growing number of consumers want reassurance that the products they

buy are sustainably sourced and protect the earths natural resources.

Many retailers have sustainability goals of their own and need the support of

suppliers like Unilever if they are to achieve them. This collaboration is

broadening and deepening the relationships they have with their customers.

Sustainability is a fertile area for product and packaging innovation. It is allowing

us to deliver new products with new consumer benefits.

1Over half of Unilevers

global sales are in developing countries including India, the very places which face

the greatest sustainability challenges deforestation, water scarcity and poor

sanitation.


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These countries represent major growth markets for Unilever, so if Unilever can

develop products today that help people adapt to the changing environment of

tomorrow, it will help Unilever grow faster in future.

Managing our business sustainably not only generates cost savings, it can alsosave consumers money.


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Two out of three Indians use our products, making their brands a part of every day

life.

They help people look good, feel good and get more out of life with brands and

services that are good for them and good for others.

Bigger, better, faster innovation

Brands and innovation are at the heart of everything they do. Research and

Development (R&D) is the home of breakthrough technology for bigger, better,

faster innovations.

Home & Personal Care

In 2012, they launched Lifebuoy Activ Naturol Shield, providing breakthrough

technology in germ protection. The technology packs a combination of naturally

occurring substances with the best of technology in cleansing, providing ten times

better protection against disease causing pathogens. It is a matter of pride for them

that the Unilever R&D centre in Bengaluru, India, was the lead research centre for

this innovation.

The launch of Ponds Age Miracle Cell ReGEN Range brought to the Indian

market the most advanced anti-ageing technology developed by the Ponds

Institute. The New Ponds Age Miracle with Intelligent Pro Cell Complex gives

aging skin cells three times more skin renewal power. This extensive collection

provides everything the contemporary Indian woman needs for flawless natural-

looking makeup.

In another innovation, Fair and Lovely introduced a future tube to upgrade sachet

consumers to an affordable yet aspirational format. This enabled incremental

volume and value consumption by inviting existing sachet users to trade up to the

future tube, which apart from being innovative and easy to use was priced to

deliver greater value.


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In Hair Care, the Keratinology innovation launched by Sunsilk is specially

designed to prolong the beauty of salon-treated hair. It features Keratin Micro

Technology, which works to intensively nourish and reconstruct the hairs surfacefor stunning hair renewal and keeps salon beauty for longer.

The Color Rescue range by Dove brought to the Indian market a unique product

that repairs damaged hair and helps lock in the vibrant colour for longer.

In laundry, the Rin portfolio was further extended with the launch of Rin Perfect

Shine Neel in the Liquid Blues category. The Rin portfolio currently includes Rin

Washing Powder, Rin Detergent Bar and Rin Bleach. Liquid Blues is a logical

extension for the Rin brand, which carries the promise of delivering sparkling

white clothes. Comfort, the fabric conditioner brand, has grown with innovative

market development.

Comfort anti bacteria was launched as a new variant during the year to build on the

huge success that the category has seen in just a few years since it was first

launched in India.

In colour cosmetics, Lakm launched the premium range of Absolute makeupa

high performance color cosmetics range, with leading edge technology sourced

from our Italian and French partnerships. With a stunning range of high-end face,

lip, nail and eye offerings, along with professional make-up applicators, Lakm

Absolute provides the Indian woman with a premium long-wear line.

Axe, the leading deodorant with a presence of over 10 years in India, saw the

portfolio extended with the launch of Axe Shower Gel. The Axe grooming range

for the young Indian male also includes Shaving Gel, Foam, After-Shave lotion,and CologneTalc.

Foods

Rising consumption and changing tastes are opening up new opportunities. The tea

bag market in India has tripled in the last three years with growth being led by


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exotic, flavoured and green teas. In order to outgrow the market and capitalise on

this opportunity, Taj Mahal and Lipton last year launched 11 new flavours in the

flavoured tea bag and green tea bag segment. The burgeoning caf culture in India

has been driving growth of in-home consumption of coffee as well. To leverage

this, Bru introduced three new brands in the premium and mass-premium segmentsof the instant coffee market viz. Bru Exotica, Bru Gold and Bru Lite and initiated a

pilot in the retail space by opening eight Bru World Cafs in Mumbai in 2011. The

Frozen Dessert category continued to grow

with successful innovations during the summer of 2011. New Cornetto Disc,

Paddle Pop Grape Apple Jelly, SelectionsRoasted Almond Chocolate and Black

Currant Raisin which targeted and delighted youth, kids and families alike.

Reducing salt

Their Knorr portfolio has been revamped to introduce newer variants with less

sodium over the past few years. This has resulted in an average 13% sodium

reduction among our soup top sellers. In 2011, we also reduced sodium in Kissan

ketchup formulations by an average of 11%

Reducing calories

To cater to the needs of the growing number of health conscious people, Kwality

Walls, our frozen dessert brand, offers product formats which deliver less than 99

Kcal in one standard scoop of 80ml, in its Selection range. Providing healthy

eating information their labels carry information on energy, protein, carbohydrate,

sugars, fat, and where relevant on saturated fat, fibre and sodium.

HUL also participates in the 'The Choices program', a front-of-pack labelling

programme aimed to help

consumers make the healthier choice. They aim to have two-thirds of our foods

and beverages portfolio comply with the

Healthy Choice guidelines by 2015.


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Around 60% of their major food and beverage brandsBrooke Bond, Bru. Knorr,

Kissan, Kwality Walls already comply with the Healthy Choice guideline.

Water

The Pureit innovation addresses one of the biggest technological challenges of the

centurythat of making safe water accessible and affordable for millions. Pureit

provides four litres of as safe as boiled water at a running cost of Rs 1 without

the hassles of boiling, without the need of electricity or a continuous tap water

supply.

Pureit has protected 30 million lives in India alone and is currently available in

seven countries. Pureit Marvella RO was launched in 2011. It is the only RO water

purifier with 15 days Advance Alert System. The range also includes Pureit

Marvella, Pureit Classic 14 litres and Pureit Classic 23 litres.

Looking ahead

Their innovations continue to focus on strengthening the core and leading market

development across segments. Every day were working on ways to make our

brands the best, most innovative and most agile in the world.

MARKET PLACE

Consumers are at the heart of our business. They have a large base of consumers

served through millions of stores. They are now reaching out with more stores,

better stores and better standards of service. At the same time, they are making

special efforts to reach out to the remotest corners of India, delivering products and

services to people and places that were never served before.

More stores: faster spread, larger reach

Coverage expansion was a key thrust area in 2011, building on the expansion they

undertook a year earlier. Over the last two years, they have added one million new

stores, doubling our coverage and taking HUL products and services to some of the


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remotest corners. They have used technology, our rich insights and our flagship

programme, Project Shakti, to spread out fast. The project has been strengthened in

2010-11 with the Shaktimaan initiative under which men of the Shakti families are

given bicycles to cover surrounding villages to increase HULs

distribution and sales as well as enhance the income of Shakti families. There are

now 30,000 Shaktimaans across India. Shakti Amma will continue to drive home-

to-home sales in their village and Shaktimaan will cover small retail outlets in

surrounding villages.

Perfect stores: right product, right outlet, right quantity

The Perfect Stores programme is aimed at improving availability by maintainingand building assortment in outlets and ensuring better visibility of HUL products at

the point of purchase. Currently, 1.1 million retail outlets that account for more

than 90% of HUL turnover in retail outlets work as Perfect Stores. Half of these

were enrolled in the Perfect Stores programme in 2011, delivering higher sales and

market shares than the average stores. Project iQ, which uses sophisticated

analytics to reach out to these Stores, won the 2011 Global Unilever IT Award for

Releasing the

Power of Information.

Customer Centricity: the customer comes first 2011 saw greater focus on

customers to drive growth and ensure a seamless working relationship with our

partners. They institutionalise the Joint Business Planning (JBP) process for

distributive trade in 2011. Under this, the customer

and HUL agreed on a set of deliverables to set the tone for growth ahead of themarket. This was complimented with a comprehensive customer reward and

recognition through the programme

Customer Differentiation Tool.


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They also launched Customer Credo, under which members of our customer team

and partner functions spent 50,000 man-hours to connect with the customer. They

rolled out a programme christened Happy 2 Help across more than 2300

distributors to help better customer connect and quick resolution of their issues.

This is an active effort at issue identification and resolution using the customerhelpline Levercare. Almost 4000 pending issues were resolved within a month.

They plan to repeat the exercise once every quarter.

Modern trade: Growth through partnership

Modern trade is one of the fastest growth channels for HUL. To build on this, they

created joint marketing plans with leading customers like Walmart, Metro and

Tesco. The Modern Trade team swept the Customer Awards for 2011 with several

strategic customers like Tesco, Walmart and Hypercity.

Project 3G: Building engagaement with 20,000 Associates

Point of presence is critical for our business because it is here that 70% of

decisions to buy are made. The quality of their presence at the point of purchase is

directly co-related to the capability of their business associates and their people inthe field. These associates are responsible for in-store execution. In the interest of

bringing in sustainable HR processes for better management of performance and

engagement of third party associates, HUL has launched a platform named 3G

(short for Gain, Grow, Get ahead). This platform enables HUL to reward and

recognize top performing associates, enhance their capabilities and provide a clear

career path for growth, thereby ensuring high motivation levels amongst the

associates to enable better execution in the market.

Project Express: Gateway to rural

They want to enhance our coverage even further to enable them reach as much as

90% of the rural population. In order to achieve this, they have to ensure a viable

sustainable business model for our associates. This calls for partnering with


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businesses like mobile telecommunications, which have a similar wide reach. They

have partnered with Tata Teleservices Limited to

increase our rural foot print and give a fillip to rural distribution as well as the

earnings potential of Shakti entrepreneurs. They are working to extend this

partnership to 15 states.


Continuous improvement is an ongoing effort to improve products, processes and

services. This leads to a step up in all round performance. Their focus on doing

every small thing better every single day is bringing consumers and customers

better quality and service while delivering substantial savings and acceleratedgrowth.

Lean, responsive, consumer-led

Consumer needs are changing rapidly. They must study these changing needs and

respond to changing aspirations. Every product and service is shaped and built

from the perspective of our consumers. In addition, they must take all that we

already do well and do it even better, faster and more efficiently to help build a

lean, responsive and consumer-led organization.

Better service

Service as measured through 'On Shelf Availability' saw a significant improvement

in 2011. Overall service level as measured through CCFOT (Customer Case-Fill

On-Time)

saw an improvement of 260 basis points. Modern Trade reported a sharperimprovement of 400 basis points. These results were delivered through structured

initiatives which are robust and sustainable.


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Better quality

They are systematically improving the quality of our products as perceived by our

consumers. In 2011, consumer complaints per million units fell by 13%. As an

example, they changed to laser coding on bottles so that markings became easier toread, eliminating complaints that coding was sometimes smudgy or illegible.

Flawless execution

Their business has seen strong volume growth over the last several quarters. In

order to support this growth, they are adding capacity in a structured and cost

effective framework. They are leveraging the global capability of Unilever to

execute with speed. They added 20% capacity during 2011.They are equipping our

facilities with state-of-art technology and rigorous standardization to ensure that

designs are rolled out faster at newer locations under the principle Design Once,

Deploy Everywhere.

Cost savings

They have saved 6% in total supply chain cost by exploiting improvement

opportunities at every node in the value chain. Wherever they find opportunities to

add value or cut costs, they take them. They execute fast and replicate even faster.

An example of this is the low cost business model for the washing powder brand,

Wheel.

Managing cash

They continued to drive cash delivery and sustained negative working capital in2011. They reduced days-on-hand inventory. They aim to bring stocks down

further through continuous improvement of our business planning process.

Partnerships with suppliers


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Their suppliers are vital partners in our sustainable growth ambitions. They work

with them to create better, faster innovation. In line with their commitments in the

Unilever Sustainable Living Plan, they increased the amount of agricultural raw

materials obtained from sustainable sources.

Growing sustainably

They have begun using alternate biomass-based fuel to generate steam at some of

our manufacturing facilities. In 2011, as part of the first phase of this shift, they

changed to sustainable fuel at three factories. The work involved perfecting the

biomass based boiler technology and sourcing of biomass based fuels.

Driving down Costs, Improving margin

Their market leading washing powder Wheel has seen margin improvement

through our low cost business model (LCBM) approach, which optimises margins

at every link in the value chain. For Wheel, LCBM included improvement in trade

terms and advertising budgets as well as in the manufacturing and distribution

network.


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CONCLUSION

Strategy in the year 2009-10

Strategy in the year 2010-11

It has launched initiatives like go to market and Bushfire so that the

company can ensure reaching its products to seven million outlets instead of

selling the product in just 2,000 modern trade stores.

Knorr is a perfect example of this. From just soup, it has not only moved to

soupy noodles (soups and snacks), which is a runaway success, but is now

positioned as a complete cooking aid (meal maker) for Indian housewives.


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Strategy for the year 2011-12


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Bibliography

www.business-standard.com

www.hul.co.in

www.financialexpress.com/news/hul-itc-take-battle-to.../658713/

Independent.academia.edu/.../Hindustan_Unilever_Limited-_a_study

www.oppapers.com/.../marketing-strategy-of-hul-in-india-page1.htm..

en.wikipedia.org/wiki/Marketing_strategy

Hindustan Unilever Limited
http://www.business-standard.com/http://www.business-standard.com/http://www.hul.co.in/http://www.hul.co.in/http://www.hul.co.in/http://www.hul.co.in/http://www.financialexpress.com/news/hul-itc-take-battle-to.../658713/http://www.financialexpress.com/news/hul-itc-take-battle-to.../658713/http://www.financialexpress.com/news/hul-itc-take-battle-to.../658713/http://www.financialexpress.com/news/hul-itc-take-battle-to.../658713/http://www.financialexpress.com/news/hul-itc-take-battle-to.../658713/http://www.hul.co.in/http://www.business-standard.com/

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