A STUDY ON

Content About HUL Vision Mission Heritage History SWOT Analysis Segmentation Products Distribution

System Marketing

Strategy Promotion

Strategy

Market Share Competitors Edge over

Competitors Harnessing IT Merger &

Acquisition Award Future Plan Future Technology Major Challenges Finding /

Suggestion Conclusion

About HUL

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company, touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages.

The company was renamed in late June 2007 to "Hindustan Unilever Limited”, to provide the optimum balance between maintaining heritage of the company and future benefits.

HUL holds 100 factories across India for manufacturing its diverse product range.

The turnover was Rs. 20,239 Crores in the last fiscal year ended by March 31st , 2009.

HUL has more than 15,000 employee, including over 1,400 managers.

HUL is a subsidiary of Unilever, one of the world’s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of €40.5 billion is holding 52 % share in HUL.

HUL offered 10 % share for Indian market, being the first among the foreign subsidiaries to do so.

About HUL Contd…

HUL meets everyday needs for nutrition, hygiene, & Personal care, with brands that help people feel good, look good and get more out of life.

HUL is rated among the top four companies globally in the list of “Global Top Companies for Leaders” by a study sponsored by Hewitt Associates in partnership with Fortune Magazine and the RBL group.

HUL is the No. 1 company in the Asia – Pacific region and in India in the same survey.

HUL completed 75 years on October 17th , 2008.

About HUL Contd…

Vision

To meet consumer needs they will respect the concerns of their consumers & of society.

To make injury free organization.Mission To add vitality to life. Bring safety on top of mind for employees

& will integrate it with all business processes & ensuring a safe & healthy work environment.

Heritage

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

Soon after followed Lifebuoy soap in 1895 and other famous brands like Pears, Lux and Vim.

Vanaspati ghee was launched in 1918 and became the famous brand Dalda.

History

On November 27th 1931, Unilever set up its first Indian subsidiary of ‘Hindustan Vanaspati Manufacturing Co.’

‘Lever brothers India Ltd.’ Incorporated on October 17th 1933.

‘United Traders Limited’ incorporated on May 11th 1935.

In 1956, Three companies merged to form ‘Hindustan Lever Limited’, with 10% Indian equity participation.

July 19th 2007, changed the name to Hindustan Unilever Limited.

SWOT Analysis

Strength :- Innovative Aspects. Presence of Established distribution

network in both. Strong R&D. Highly skilled HR. Effective CSR.

Weakness :- Strong Competitors. Low Export Level (At Present). Changing consumption pattern. High advertising costs.

SWOT Analysis Contd….

SWOT Analysis Contd….

Opportunity :- Large Domestic Market. Untapped rural Market. Changing Life Styles of consumer. Increasing the consumer income.

Threats :- Tax & Regulatory Structure. Mimic of Brands. New Entrants. Increasing Raw Material cost.

SWOT Analysis Contd….

Segmentation

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

The customer of HUL products is every one. Starting with child, youth to old age as well.

Women are fond of the product of HUL. All product are available for women’s needs & desires

So, HUL is targeting as a whole for its product.

Products

Celebrated 75 years in India….

Food Brands

A good honest scoop of daily pleasure.

Lipton has a range of vitality teas that truly encompass the goodness of tea.

India’s favorite cup of tea, the great taste of Red Label brings people closer together and strengthens relationships.

Brooke Bond Taaza lifts me people unshackles the mind, allowing them to see and realize possibilities.

Brooke Bond Taj Mahal is an exclusive selection of teas for the discerning consumer.

Partnering with the mom in nurturing her dreams, Annapurna Atta is aimed at helping her provide wholesome tasty nutrition to her family. 

Playful banter, a little mischief, serious conversation… there’s no time for young couples like the time spent sharing a cup of 3 Roses.

Ek cup Bru aur mood ban jae…

With Kissan, good food is loved not shoved!

Kissan Amaze Brainfood is speci - fically designed for the mental development of kids.

Knorr helps families make meal times special, nutritious, tasty and healthy.

Home Care Brands

Active Wheel de "Mehnat se Aazadi" Freedom from painful & tiring laundry

Cif- the best cleaner to let you shine.

The world’s largest fabric conditioner brand.

The sheer power of Domex bleach gives you the confidence you need, eradicating all known germs.

Rin provides ‘best in class whiteness’ which is demonstrable.

Sunlight is a color care brand

Giving your kids the freedom to get dirty and experience life, safe in the knowledge that Surf Excel will remove those stains

Created in 1885, the Vim brand is still innovating and using the magic of natural ingredients to create unbeatable results over a hundred years later.

Personal Care Brands

Rexona gives you 24 hour protection from sweat and body odour and therefore the confidence to handle whatever the day has in store.

Dove stands for real beauty. All around the world, Dove is making complete therapy for your hair.

Pears – the purest and most gentle way to skincare!

Lux believes in passion for beauty. It continues to be a favorite with generations of users for a sensuous experience of luxury.

Awaken, and enliven your senses with a Liril bath.

Lifebuoy is available in multiple variants in soaps and specialist formats such as liquid hand wash, catering to the entire family.

Holistic skin care experiences perfected over the ages to deliver healthy, beautiful skin

Breeze, with the goodness of glycerine gives soft, fragrant and smooth skin.

Personal Care Brands

New Clear with Essential Oils, guarantees Zero dandruff and leaves your hair feeling fabulous.

Clinic Plus is India’s largest selling shampoo and has won the trust the millions of families across India.

Freshness that brings you Closer Pepsodent India is committed to improve the overall Oral health of Indians.

Sunsilk encourages young women in India to live for today. Sunsilk helps you transform the beauty of your hair instantly because LIFE CAN'T WAIT!!

Dove stands for real beauty. All around the world, Dove is making complete therapy for your hair.

Personal Care Brands

Your skin is amazing. It deserves to be treated as such.

Rexona gives you 24 hour protection from sweat and body odour and therefore the confidence to handle whatever the day has in store.

Get the expert to look after your skin

Lakme is an ally to the Indian Woman and inspires her to express her unique beauty and sensuality. Thus, enabling her to realize the potency of her beauty.

More than 30 years ago, a unique brand was born. Wrapped within a humble lavender tube, it went on to become the World’s No.1 Fairness cream.

Axe with Best Quality Fragrance

LEVER Ayush aims to help a new generation of Indians rediscover everyday health and vitality through customized Ayurvedic solutions.

Aviance enables women actualize their unique potential through expert customized beauty solutions.

The new expansion of fairness cream for men

Distribution System

Distribution system’s focus to enable easy access to their brands, touch consumers with a three-way convergence - of product availability, brand communication, and higher levels of brand experience.

The most obvious function of distribution system is to provide the logistics support to get the company’s product to the end customer.

The another important role of this system is to maintain the information flow between company to consumer.

HUL's products, are distributed through a network of about 7,000 redistribution stockists covering about one million retail outlets.

The general trade comprises grocery stores, chemists, wholesale, kiosks and general stores.

Company provides tailor made services to each of its channel partners.

HUL is using the point of purchase method for much higher level of direct contact, through in-store facilitators, sampling, education and experience.

Distribution System

Focuses on short supply chain for distribution.

Meet every need of people everywhere. Build segments & market for the future

wise Unilever has strong expertise. Emphasis on Direct selling, Franchisee to

reach everyone .

Marketing Strategies for Urban Areas

Marketing Strategies for Rural Areas

For long term benefit HUL started PROJECT STREAMLINE in 1997.

Appointed 6000 sub–stockists that directly covers about 50000 villages & 250million customers.

Integrate, economic, environment, & social objective with Business Agenda.

Promotion Strategy

Project Shakti :- This project was started for Co’s promotion in rural market as well as women empowerment. HUL's partnership with Self Help Groups of rural women. It was started in 2001, Project Shakti has already been extended to about 50,000 villages in 12 states - Andhra Pradesh, Karnataka, Gujarat and others.

Hindustan Unilever Network (HUN) :- It is the company's arm in the Direct Selling channel. It presents a range of customised offerings in Home & Personal Care and Foods.

Lifebuoy Swasthya Chetana :- The programe endeavours to induce adoption of hygienic practices among rural Indians and aims to bring down the incidence of diarrhoea.

Out-of-Home :- This deals in providing vending machines for hot beverages like tea and coffee. HUL’s alliance with Pepsi Co. has significantly strengthened the channel.

Health and Beauty services :- (i) Lakme Salons provide specialised beauty services and solutions, under the recognised authority of the Lakme brand. (ii) The Ayush Therapy Centres provide easy access to authentic Ayurvedic treatments and products.

Promotion Strategy Contd…

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%.

Competitors

Edge over Competitors

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

Reflected national priorities over the years and remained committed towards India.

Large market capitalization and Product Variety. Good Company policies such as :-

Developing and using relevant technology Generating productive employment Stimulating industrialization and dispersing its

benefits. Adding value to agriculture. Sustaining export performance.

Harnessing Information Technology An IT-powered system has been

implemented to supply stocks to redistribution stockists.

The objective is to make the product available at the right place and right time in the most cost effective manner.

For this, stockists have been connected through an Internet-based network, called RS Net, for online interaction.

RS Net is part of Project Leap, HUL's end-to-end supply chain.

Mergers and Acquisitions

In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with significant interests in Instant Coffee.

The erstwhile Tata Oil Mills Company (TOMCO) merged with HUL, effective from April 1, 1993.

In 1993, it acquired the Kissan business from the UB Group and the Dollops Icecream business from Cadbury India.

HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994.

In1994, the company entered into a strategic alliance with the Kwality Ice-cream Group families and in 1995 the Milk food 100% Ice-cream marketing and distribution rights too were acquired.

In 1995, HUL and yet another Tata company, Lakme Limited.

Amalgamation of new businesses -- Brooke Bond Lipton India in 1996-97; Pond's India in 1998; and a smaller subsidiary, Industrial Perfumes, in 1999.

In 2003, HUL acquired the Cooked Shrimp and Pasteurized Crabmeat business of the Amalgam Group of Companies, a leader in value added Marine Products exports.

Mergers and Acquisitions Contd…

In January 2000, in a historic step, the government decided to award 74 % equity in Modern Foods to HUL, thereby beginning the divestment of government equity in Public Sector Undertakings (PSU) to Private sector partners. HUL's entry into Bread is a strategic extension of the company's wheat business. In 2002, HUL acquired the government's remaining stake in Modern Foods.

Mergers and Acquisitions Contd…

Awards

Hindustan Unilever Limited (HUL) was conferred the Commendation Certification for Significant Achievement in HR Excellence by the Confederation of Indian Industry (CII). Mumbai, October 22nd , 2007.

Hindustan Unilever Limited (HUL) was in September 2007 rated among the top four companies globally in a global study of ‘Global Top Companies for Leaders’ by Hewitt Associates in partnership with Fortune magazine and the RBL Group.

Awards Contd…

HLL has been declared a Mini Ratna  by the Government of India.

Upgraded in 2006 as a Schedule B Company by the Department of Public Enterprises.

HINDUSTAN Lever Ltd (HLL) has bagged 20 India Star awards and three Asia Star awards for innovation in packaging concepts and systems.

Future Plans

HLL has drawn up a comprehensive plan to expand its portfolio in the area of Health Care and Contraceptives.

Chemicals business (encompassing Flavours, Fragrances and other Specialty Chemicals), as well as several non-FMCG export businesses such as Thermometers and Mushrooms.

HLL has been pepping up its rural distribution systems and has launched low unit price variants of its popular brands to draw in new users in the rural areas.

Future Technology

HLL has been pepping up its rural distribution systems and has launched low unit price variants of its popular brands to draw in new users in the rural areas.

Major Challenges

Inflation reducing profits. Competitions in core strategies. Consumer Behavior. Global Exposure. Help to improve nation’s nutrition. Give life an extra – Flavor.

Finding / Suggestion

Crucial need to strategically place brands on strong position.

Hard to differentiate blue competitive brands, cash brands.

Avoid multiple price wars. Proliferation –product line.

Conclusion

With it’s long and luminous history HUL is India’s true pride.

It is a company which the customers in rural as well as urban India relate to. This explains the deep penetration of HUL in Indian market.

The future for HUL is demanding newer and high level innovations so as to cope up with increasing competition.

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

THANK YOU

Presented By :-Prashant Kumar Pandey 2nd Sem. (PGDM) IMG/09-11/012 07TH March 2010