Subject:- MarketingSubject:- Marketing

Topic: Marketing Mix on Topic: Marketing Mix on Hindustan Unilever Limited (HUL)Hindustan Unilever Limited (HUL)

Submitted by:- Rahul. S. DhruveSubmitted by:- Rahul. S. Dhruve

INDEXINDEX► Introduction to MarketingIntroduction to Marketing► Introduction to Marketing MixIntroduction to Marketing Mix►4 P’s of Marketing4 P’s of Marketing►Marketing Mix on Hindustan Unilever Marketing Mix on Hindustan Unilever

Limited (HUL)Limited (HUL)►Conclusion Conclusion ►BibliographyBibliography

Introduction on MarketingIntroduction on Marketing

The American Marketing Association definesThe American Marketing Association defines marketing as : marketing as : “ “Marketing is the activity, set of institutions, Marketing is the activity, set of institutions,

andand processes for creating, communicating, processes for creating, communicating,

delivering,delivering, and exchanging offerings that have value forand exchanging offerings that have value for customers, clients, partners, and society at customers, clients, partners, and society at

large”.large”.

Introduction to Marketing Introduction to Marketing MixMix

Marketing Mix is a conceptual framework Marketing Mix is a conceptual framework whichwhich

highlights the principal decisions that highlights the principal decisions that marketingmarketing

managers make in configuring their offerings managers make in configuring their offerings to suitto suit

Customer’s needs.Customer’s needs.

4 P’s of Marketing4 P’s of Marketing►PRODUCTPRODUCT►PRICEPRICE►PLACEPLACE►PROMOTIONPROMOTION

Marketing MixMarketing Mix► After the basic Introduction about the marketing, After the basic Introduction about the marketing,

marketing mix & 4 P’s of marketing. marketing mix & 4 P’s of marketing. ► I would like to hereby present the Marketing Mix of I would like to hereby present the Marketing Mix of

HUL.HUL.

ABOUT HULABOUT HUL► Came into exist in the year Came into exist in the year 19331933 in Mumbai. in Mumbai.

► Company was known as Hindustan Lever till Company was known as Hindustan Lever till May 2007.May 2007.

► The Company is headed by Harish Manwani (Chairman), The Company is headed by Harish Manwani (Chairman), Nitin Paranjpe (CEO & MD).Nitin Paranjpe (CEO & MD).

► HUL is a FMCG Company mainly into Home & Personal HUL is a FMCG Company mainly into Home & Personal Care , Food & Beverages.Care , Food & Beverages.

► HUL is listed company on BSE & NSE with total Market HUL is listed company on BSE & NSE with total Market Capitalisation of Rs 68,181.98 crores.Capitalisation of Rs 68,181.98 crores.

PRODUCTPRODUCT

PRODUCTPRODUCT1.1. The products offered by HUL are Home care brands, The products offered by HUL are Home care brands,

Personal Care Brands, Food Brands, Water, Nutrition, Health, Personal Care Brands, Food Brands, Water, Nutrition, Health, Hygiene & Beauty.Hygiene & Beauty.

2.2. Attributes :Attributes : ► Safety:- The HUL Research Centre (HURC)Safety:- The HUL Research Centre (HURC)► Services:- Focus on after sales services in case of any Services:- Focus on after sales services in case of any

product defect or any other issues.product defect or any other issues.► Proper Packaging:- Laminated Papers and Plastic, & Proper Packaging:- Laminated Papers and Plastic, &

Corrugated Boxes Corrugated Boxes ► Quality:- Company tries to follow Total Productive Quality:- Company tries to follow Total Productive

Maintenance (TPM) in order to make zero loss & zero errors.Maintenance (TPM) in order to make zero loss & zero errors.► Brand Name:- With over 20 lakhs customer, over 2000 Brand Name:- With over 20 lakhs customer, over 2000

suppliers, over 16500 employees makes this company a suppliers, over 16500 employees makes this company a very popular brand.very popular brand.

3. Appearance of product is very attractive & complete 3. Appearance of product is very attractive & complete information of product makes customer buy the product.information of product makes customer buy the product.

PRICEPRICE

PRICEPRICE► Offers brands with various price range.Offers brands with various price range.

► The prices of the products are such that it is The prices of the products are such that it is affordable to all income group.affordable to all income group.

► Competitive rates as compared to its peers.Competitive rates as compared to its peers.

► Discounts are offered on various products Discounts are offered on various products depending upon the products. (Rs 10 off on 2kg depending upon the products. (Rs 10 off on 2kg detergents powder). 1+1 free offers, seasonal detergents powder). 1+1 free offers, seasonal discounts etc.discounts etc.

► It has psychological factor on consumer’s mind as It has psychological factor on consumer’s mind as it offers products from lower range to higher range.it offers products from lower range to higher range.

PLACEPLACE

PLACEPLACE► First company in India to introduced shampoo sachet for First company in India to introduced shampoo sachet for

rural population. rural population. ► Covers both Mass & Niche Markets.Covers both Mass & Niche Markets.► Also uses Direct Selling Channels, i.e franchisee to entire Also uses Direct Selling Channels, i.e franchisee to entire

population, Eg:- Aviance & Ayush.population, Eg:- Aviance & Ayush.► Focuses on short supply chain distribution.Focuses on short supply chain distribution.► Sales takes place through retail, & wholesale distribution.Sales takes place through retail, & wholesale distribution.► Builds & strengthens the market where already presence Builds & strengthens the market where already presence

of HUL exists.of HUL exists.► Conducting survey about the products & their Conducting survey about the products & their

preferences.preferences.► Covers intensive distribution.Covers intensive distribution.

PROMOTIONPROMOTION

PROMOTIONSPROMOTIONS► Creating Product Awareness through advertisement & information Creating Product Awareness through advertisement & information

on the website.on the website.

► Arousing Interest amongst consumer through stalls on the road or Arousing Interest amongst consumer through stalls on the road or outside shops etc. and showing live demonstration of the product.outside shops etc. and showing live demonstration of the product.

► Share Knowledge about the products verbally or through print & Share Knowledge about the products verbally or through print & electronic media, so that consumers knows all the details about the electronic media, so that consumers knows all the details about the product.product.

► Share Benefits includes the shampoo scathes or any discount Share Benefits includes the shampoo scathes or any discount coupons attached in the newspapers coupons attached in the newspapers

► Create a Statement is created through quality of the product & the Create a Statement is created through quality of the product & the response company receives once consumers uses them. response company receives once consumers uses them.

► Sales Push is done through free samples, introduction of a new Sales Push is done through free samples, introduction of a new product at lower price, contest (online & offline), celebrities product at lower price, contest (online & offline), celebrities endorsing the company’s products.endorsing the company’s products.

3 P’s of Services 3 P’s of Services MarketingMarketing

►PeoplePeople►Physical EvidencePhysical Evidence►ProcessProcess

PEOPLEPEOPLE

PEOPLEPEOPLE► Mr Harish ManwaniMr Harish Manwani (Chairman):- Vast experience (Chairman):- Vast experience

into Personal Product Business.into Personal Product Business.► Mr.Nitin ParanjpeMr.Nitin Paranjpe (CEO & MD):- Vast experience (CEO & MD):- Vast experience

into Home care products like fabric care & laundryinto Home care products like fabric care & laundry► Mr. M. R. ShridharMr. M. R. Shridhar (CFO):- Gold medalist CA & looks (CFO):- Gold medalist CA & looks

after the overall financial affairs of the company.after the overall financial affairs of the company.► Mr. Gopal VitthalMr. Gopal Vitthal (ED):- 21 years experience into (ED):- 21 years experience into

the field of sales & marketing of FMCG Products.the field of sales & marketing of FMCG Products.► Mr. Pradeep BanerjeeMr. Pradeep Banerjee:- Executive Director, Supply :- Executive Director, Supply

chain management.chain management.► Mr. Deepak ParekhMr. Deepak Parekh:- Director in many of the :- Director in many of the

reputed organisation, brings his immense experience reputed organisation, brings his immense experience & expertise helps this organization to grow.& expertise helps this organization to grow.

PHYSICAL EVIDENCEPHYSICAL EVIDENCE

PHYSICAL EVIDENCEPHYSICAL EVIDENCE► Physical Evidence:- As HUL produces FMCG goods it has used Physical Evidence:- As HUL produces FMCG goods it has used

different environment to make different products. different environment to make different products.

► Eg:- To make tea the company requires open tea fields Eg:- To make tea the company requires open tea fields whereas to make soaps & detergents a fully equipped whereas to make soaps & detergents a fully equipped laboratory with proper facilities of chemicals & temperature is laboratory with proper facilities of chemicals & temperature is required.required.

PROCESSPROCESS

PROCESSPROCESS► The process to produce any product is very systematic at The process to produce any product is very systematic at

HUL. HUL. ► Eg:- From producing tea – to delivering it to end consumer.Eg:- From producing tea – to delivering it to end consumer.

EFFECTIVE MARKETING EFFECTIVE MARKETING MIXMIX

Effective Marketing MixEffective Marketing Mix► Customer Research:- The company is always makes a Customer Research:- The company is always makes a

consumer research before & after launching a product in consumer research before & after launching a product in order to improve & make it more consumer friendly.order to improve & make it more consumer friendly.

► Competitor Analysis:- As the company has many competitors Competitor Analysis:- As the company has many competitors it always try to improvise their product in terms of price, it always try to improvise their product in terms of price, quantity, consumers. And they also try to understand the quantity, consumers. And they also try to understand the reason for their for any of their product not performing well or reason for their for any of their product not performing well or there is sudden drop in demand for the product.there is sudden drop in demand for the product.

EFFECTIVE MARKETING EFFECTIVE MARKETING MIXMIX

STRENGHTS STRENGHTS

► Well established Well established company with a brand company with a brand name.name.

► Prices of product are Prices of product are suitable to all income suitable to all income groupgroup

► Strong management Strong management team.team.

► Safe & Quality Products.Safe & Quality Products.

WEAKNESSWEAKNESS

1.1. High Advertisement High Advertisement cost during promotions.cost during promotions.

2.2. Too many competitors Too many competitors can take some share of can take some share of profit of the company.profit of the company.

3.3. Global presence is less Global presence is less as compared to its as compared to its peers.peers.

4.4. Low on exports.Low on exports.

4 P’S – CONSUMERS’S 4 P’S – CONSUMERS’S ANGELANGEL

► Products made by the company household products used Products made by the company household products used by everyone in all the houses (Eg:- Soaps, Ketchup etc.).by everyone in all the houses (Eg:- Soaps, Ketchup etc.).

► Price are design for all income group (Eg:- A shampoo is Price are design for all income group (Eg:- A shampoo is available for Rs 2 in a scathe as well as for 165 Rs in a available for Rs 2 in a scathe as well as for 165 Rs in a bottle).bottle).

► HUL products are available in all the PLACES, from a small HUL products are available in all the PLACES, from a small grocery shop to big malls.grocery shop to big malls.

► Promotion is done in various form like ads, providing Promotion is done in various form like ads, providing feedback number are given at the back of the product. feedback number are given at the back of the product.

4 A’S OF MARKETING4 A’S OF MARKETING

4 A’S OF MARKETING4 A’S OF MARKETING► AssetsAssets:- In the form of Intellectual assets, who have vast :- In the form of Intellectual assets, who have vast

experience in the FMCG industry, which has lead to such a experience in the FMCG industry, which has lead to such a high growth of the company.high growth of the company.

► AttitudeAttitude:- Company has always being positive towards its :- Company has always being positive towards its product & people & always strives to improvise themselves product & people & always strives to improvise themselves by educating their consumers about the product, as well as by educating their consumers about the product, as well as maintaining long term relationship with their consumers. maintaining long term relationship with their consumers.

► AcceptanceAcceptance:- The quality & safety of the products have :- The quality & safety of the products have made it highly acceptable in the market & also the positive made it highly acceptable in the market & also the positive response they get about their products, which in turn has response they get about their products, which in turn has made them market leaders in the FMCG Space.made them market leaders in the FMCG Space.

► AlignmentAlignment:- The entire functioning of company is properly :- The entire functioning of company is properly aligned & planned to that there is no problem in supply aligned & planned to that there is no problem in supply chain, distribution etc. chain, distribution etc.

APPLICATION OF MARKETING APPLICATION OF MARKETING MIX (I)MIX (I)

Programme Market Fit.Programme Market Fit.

► The products made by HUL are suitable for any market whether The products made by HUL are suitable for any market whether its rural or urban.its rural or urban.

► Because of lower prices & higher availability the sales of the Because of lower prices & higher availability the sales of the product is very high. product is very high.

► Example:- Advertisement of Surf Excel with a tagline “Dhundte Example:- Advertisement of Surf Excel with a tagline “Dhundte rehe jao ge” creating a huge increase in its sales. rehe jao ge” creating a huge increase in its sales.

► The consistency is always found in the products of HUL because The consistency is always found in the products of HUL because of proper combination of various factors like price, weight, of proper combination of various factors like price, weight, quality etc.quality etc.

APPLICATION OF MARKETING APPLICATION OF MARKETING MIX (I)MIX (I)

► Programme Company FitProgramme Company Fit:- The general programme fit for :- The general programme fit for the company depends upon demand for the product, cost of the company depends upon demand for the product, cost of manufacturing & selling the product, Government policy. Etc.manufacturing & selling the product, Government policy. Etc.

► Programme Customer FitProgramme Customer Fit:- The products made by HUL :- The products made by HUL targets all the consumers living in urban & rural area & which targets all the consumers living in urban & rural area & which suit all the income group as well as all the ages.suit all the income group as well as all the ages.

► Programme Competitor FitProgramme Competitor Fit:- As HUL has many competitor, :- As HUL has many competitor, it has to keep pace with them in terms of cost of product, it has to keep pace with them in terms of cost of product, profitability, marketing strategies. profitability, marketing strategies.

APPLICATION OF MARKETING APPLICATION OF MARKETING MIX (II)MIX (II)

Individual Life Cycle.Individual Life Cycle.

► The company creates awareness about their provides through The company creates awareness about their provides through various promotional activities, which makes first time buyer various promotional activities, which makes first time buyer buy the product.buy the product.

► The retention activity is done through better service & The retention activity is done through better service & customer support, offering rewards to customers, & customer support, offering rewards to customers, & addressing their graviances.addressing their graviances.

APPLICATION OF MARKETING APPLICATION OF MARKETING MIX (II)MIX (II)

Acquisition - Retention - Add on Acquisition - Retention - Add on selling (ARA)selling (ARA)

Acquisition (A)Acquisition (A) :- is mainly done through awareness & creating :- is mainly done through awareness & creating a product as per the requirements of a consumer in a whole.a product as per the requirements of a consumer in a whole.

Retention (R)Retention (R) :- HUL produces quality products, which makes :- HUL produces quality products, which makes consumer feels safe. Company keeps doing modification in consumer feels safe. Company keeps doing modification in their product & also sells them at competitive prices to retain their product & also sells them at competitive prices to retain their costumers.their costumers.

Add on selling (A)Add on selling (A):- The HUL Products consumed in the market :- The HUL Products consumed in the market as higher as compared to its peers. There affinity between as higher as compared to its peers. There affinity between company & consumer is also high because of the brand name company & consumer is also high because of the brand name it enjoys.it enjoys.

RELATIONSHIP RELATIONSHIP MARKETING MARKETING

► Grönroos defines relationship marketing as Grönroos defines relationship marketing as “Marketing is to establish, maintain, and enhance “Marketing is to establish, maintain, and enhance relationships with customers and other partners, at a relationships with customers and other partners, at a profit, so that the objectives of the parties involved profit, so that the objectives of the parties involved are met. This is achieved by a mutual exchange and are met. This is achieved by a mutual exchange and fulfillment of promises”.fulfillment of promises”.

Consists of :- Consists of :- PromisePromise:- The promise made by HUL to produce :- The promise made by HUL to produce

quality products at lower prices. quality products at lower prices. TrustTrust:- Consumers have always shown trust on :- Consumers have always shown trust on

the company & that can be made out the sales of the company & that can be made out the sales of the company increasing every single day. the company increasing every single day.

HUL COMPETITORS & THEIR HUL COMPETITORS & THEIR PRODUCTSPRODUCTS

► P&GP&G:- Tide Washing Powder , Head & Shoulders shampoo :- Tide Washing Powder , Head & Shoulders shampoo Reduces the share of Surf Excel washing powder & Sunsilk Reduces the share of Surf Excel washing powder & Sunsilk

shampooshampoo

► NirmaNirma:- Nirma Washing Powder:- Nirma Washing PowderAffects the share on Wheel Active washing powderAffects the share on Wheel Active washing powder

► ColgateColgate:- Colgate toothpaste:- Colgate toothpasteAffects the sale of Pepsodent ToothpasteAffects the sale of Pepsodent Toothpaste

► GodrejGodrej:- Cinthol Soaps & Cinthol deodorants :- Cinthol Soaps & Cinthol deodorants Affects the sales of Lifebuoy, Dove, Hamam , Rexona in Affects the sales of Lifebuoy, Dove, Hamam , Rexona in

soap segment & Axe deodorant in deodorant segment.soap segment & Axe deodorant in deodorant segment.

HUL EFFORTS TO SURVIVE HUL EFFORTS TO SURVIVE THIS COMPETITIONTHIS COMPETITION

The common strategies used by the company to stay The common strategies used by the company to stay in the competition is:- in the competition is:-

► Exploring the rural population of India by making them Exploring the rural population of India by making them brand conscious about their products.brand conscious about their products.

► Reducing prices on purchase of bulk quantities. (Get Rs 10 Reducing prices on purchase of bulk quantities. (Get Rs 10 off purchase of 2 kg surf excel)off purchase of 2 kg surf excel)

► Free gift offers. (Buy Kissan ketchup & get small bru coffee Free gift offers. (Buy Kissan ketchup & get small bru coffee packet free)packet free)

► Hiring a celebrities to endorse their brand. (Shahrukh Khan Hiring a celebrities to endorse their brand. (Shahrukh Khan endorsing Pepsodent toothpaste ad )endorsing Pepsodent toothpaste ad )

► Giving discounts & Increasing the volumes (Pay Rs 2. off of Giving discounts & Increasing the volumes (Pay Rs 2. off of purchase or get 33 % free.)purchase or get 33 % free.)

► Exploring the rural population of India by making them Exploring the rural population of India by making them brand conscious about their products.brand conscious about their products.

CONCLUSIONCONCLUSION After completing the project I’ve learnt After completing the project I’ve learnt

the basic concepts of Marketing & the basic concepts of Marketing & Marketing Mix and how does this Marketing Mix and how does this process take place in a company. process take place in a company.

Once again I would like to thank Once again I would like to thank Professor Ramyani Das for giving me Professor Ramyani Das for giving me this informative project.this informative project.

BIBLIOGRAPHY BIBLIOGRAPHY ►Marketing Mix notesMarketing Mix notes►Website:- Website:- http://www.hul.co.in http://www.bseindia.comhttp://www.bseindia.com http://www.google.com

THANK YOU THANK YOU