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Hindustan Unilever Marketing Strategies and Polici PDF
Hindustan Unilever Marketing Strategies and Polici PDF
Hindustan Unilever Marketing Strategies and Polici PDF
University,Delhi
By:
Enrl.no.:0551221705
BBA(General)
New Delhi-110018
Declaration
I here declare that the major project, entitle “marketing strategies
study and has not been submitted earlier for any degree or
diploma of an institution/university.
appropriate places.
Date: Name:
Enrol.no.:
Countersigned
Name:
Supervisor
ACKNOWLEDGEMENT
I am grateful to many people who have contribution to this project.
of always lend the support, I needed of. I have been getting all
ready & also have to clarify all my queries from time to time.
Last but not least I would also like to thank the library members
Unilever Ltd (HLL) is India’s no.1 FMCG is able to share with their
experience.
company’s history dates back to 1931 when Unilever set up its first
Unilever, which sells soap to more than 500 million Indians, may
see global revenue growth slow in 2010 as Procter & Gamble Co.
nearly halving the local prices of Ariel and Tide detergents in 2004.
worldwide sales, will see their share of the company's growth fall to
rose 11.4 percent in the first nine months of last year, helping
offset 1.9 percent growth in Europe and 4.2 percent in North and
South America.
Unilever's overall sales growth will slow to 4.9 percent in 2010 from
15,000 employees
1,200 managers
75 Manufacturing Locations
5,545 Towns
6,38,000 Villages
November 1956.
Two years later, HUL and yet another Tata company, Lakme
and divested its 50 per cent stake in the joint venture to the
FMCG giant.
Indian government.
Modern Foods.
ORGANIZATIONAL STRUCTURE
Managing
Direc
tor
General
Mana
ger
Vice President
Products and Foods & Beverages. They endow the company with a
of Rs.10,000crore.
Government of India.
brands that help people feel good, look good and get more out of
institutions.
HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair &
the entire urban population ,and about 250 million rural consumer.
Centre (HLRC) was set up in 1958, and now has facilities in Mumbai
After having fought a bitter price battle for market share with its
care.
promotions,” he said.
This comes even as Unilever is scouting for a potential buyer for its
HUL says it is quite upbeat about the segment and says the
is working for us,” says Vats. “We successfully migrated from Rin
in the quarter ended June from 35.5% in the same period last year,
the increase was not at the expense of price war with its
multinational rival Procter & Gamble Co. P&G also gained 0.5
of about 18%.
Rs7,908 crore in 2006 and rose 8.4% over 2005. HUL doesn’t
report its laundry revenues separately but puts them under the
to keep growing in the near future. The recent price war between
Securities here.
demand from cities and HUL is focusing on Tier I and II cities to tap
that demand.
“Consumers today are buying more clothes,” says Vats. “Trends
branded products.”
PRODUCT PROFILE
personal wash, fabric wash, home care, oral care, skin care,
Foods
Exports
BRANDS
HUL s brands are household names across the country. They
include:
Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond s, Sunsilk,
SWOT ANALYSIS
Strength
1. Hindustan Unilever Limited (HUL) is India's largest Fast
market penetration.
Weakness
5. Globalization.
Threats
freight costs.
PEST ANALYSIS
envisaged.
Disposable income
Demand
Product
Satisfaction suffices. But delight dazzles the average company will
• Bathing soaps:
• Laundry items:
• Skin care:
• Oral care:
• Deodorants:
• Colour cosmetics:
Lakme
• Ayurvedic:
Ayush
• Tea:
• Coffee:
Bru
• Foods:
• Ice cream:
Kwality Wall’s .
Pricing
Make no mistake. Second P of marketing is not another name for
buy the product with the expectation they have about what the
the returns involves identifying right price level for each segment,
Ads, but the end of it all, you would be know of selling your
situation, the brand that sells more is the one that reaches the
stated above.
Hindustan Unilever Ltd(HUL) distribution network has expanded.
sales usually drops due to the fact that the heal effects product
is arch rival Procter & Gamble Co. reaches more than a million
retailers.
costs, at 18% of total costs, is much higher than Procter & Gamble
Positioning
In the 1970s consumers were ready to pay “more for more”, and
“more for same”, and the discounting era grew strong. Today’s
consumer demanding “more for less”, and the winner will be that
perception of them…
search process.
has become more than just a red bar of soap – today the
consumers
.
HINDUSTAN UNILEVER’S MARKET
SEGMENTATION
Market place for any product is comprised of many different
close up.
at a later stage.
The Real Taste of Rejuvenation
After having fought a bitter price battle for market share with its
care.
“Our strategy for growth, now is focused on product innovation,
promotions,” he said.
This comes even as Unilever is scouting for a potential buyer for its
HUL says it is quite upbeat about the segment and says the
“We have done key innovations across the product portfolio and it
is working for us,” says Vats. “We successfully migrated from Rin
in the quarter ended June from 35.5% in the same period last year.
Rs7,908 crore in 2006 and rose 8.4% over 2005. HUL doesn’t
report its laundry revenues separately but puts them under the
to keep growing in the near future. The recent price war between
is stabilizing.
COMPETITIVE STRATEGY
As Competition Heats Up, India’s Top Consumer-Products Company
The middle-aged Briton strolling the aisles and checking out the
incognito.
retail boom has created large stores and malls, so the company
wants to make sure it’s in with the new marketing crowd. Hence
Hindustan Unilever.
Facing Competition From P&G And Others
The reason for this new found egalitarianism is that the $3 billion
$3.5 billion.
from 55.2% to 54%. Favorite detergent brands like Surf Excel and
Rin are barely hanging onto their 37% share. Hindustan Lever tea
brands like Brooke Bond and Lipton have dipped from a combined
down from 21% a few years ago to just 11.84% now. That’s why
affluent shoppers present the best hope for the company’s future
will increase from 5% today to over 25% in 2012. “It is a big game
for us,” says D. Sundaram, Hindustan Unilever’s finance director.
Yet this is still a dramatic change for Hindustan Unilever which, not
long ago, was the most successful and profitable company in the
Unilever group, the crown jewel whose managers had free rein to
develop and build brands suitable for the local market. The
Overnight the change sent shock waves through India. For many
energy, it also left the field wide open for competitors to attack
And there was some stiff competition from rival Procter & Gamble;
$2.5 billion for five years while operating profit plunged 37%, to
million, thanks to price increases. But the rich margins of the past
of the home and personal care business, admits that it’s now
aren’t the only ones seeing it.” Rivals like P&G and Nivea have also
sachets it pioneered in the 1980s, which sold for less than 2 cents
shampoo sales come from sachets. But today even L’Oreal has
us.”
gain share in the next five years in India, according to Ali Dibadj,
ITC, the largest Indian cigarette maker and partly owned by British
`Profitable' Cigarettes
which will help it to invest and expand its personal- care portfolio,''
a ``neutral'' rating on the stock. ``It has the ability to take losses in
this segment as long as it grows its sales. This strategy will still
satisfy investors.''
oil, used to make soaps and foods, has surged 70 percent in the
past year.
``Given the competition, profitability will continue to be under
expects the stock to drop to 180 rupees ($4.57) in the next year
$11.8 billion.
percent of annual sales. It has sold soap in the country since 1888
HUL-UNIQUELY POSITIONED TO
CREATE VALUE
Our strategy
Competitive strengths
Innovation and R&D capabilities to straddle the
pyramid
Strategy
activities.
consumer spending.
Competitive Strengths
Impact of community
consists of personal and fabric wash, household, oral care, skin and
Foods and beverages includes tea, coffee, cooking fats and oils,
plantations.
players.
are:
grants-Rs 40000cr
Mather (O&M), and screened some options to roll out one option
early rollout.”
Director (Finance & IT), HUL, said: “We have been phasing our
brands.” The advertising spends have not been linear for the
spends during the quarter fell to Rs 336 crore, from the earlier Rs
345 crore.
reads a quote in the book from C.K. Prahalad’s The Fortune at the
“10,000 villages in nine states where HUL stood to gain the most
The authors are of the view that government workers who have
political problems.”
The HUL example, which is one of the many discussed in the book,
firms can also benefit from being “more entrepreneurial and less
communication.”
JOINT VENTURE
Hindustan Unilever Sets Up Joint Venture With
Smollan Holdings
Hindustan Unilever Limited (HUL) has decided to set up a Joint
Venture (JV) with Smollan Holdings of South Africa and the JV will
Trade”.
Other Acquisition
Hindustan Unilever has acquired several Indian FMCG companies
• Brooke Bond
• Lipton India
• Modern Foods
from Cadbury India; Lakme cosmetics brands from Tata. It has also
trainers.
NEW INITIATIVE
Bringing High-End Dove To India
cream helps women gain confidence and makes them eligible for
marriage, has made the brand a winner. That has spawned a host
“could have addressed a lot more categories, but they are more
2007, the company’s sales grew 13%, with net profit up 29.6%.
SERVICE TO SOCIETY
HUL believes that an organisation's worth is also in the service it
hygienic practices among rural Indians and aims to bring down the
PERFORMANCE REVIEW
collected.
Questionnaire &
# Internet-www.unilever.com, www.Google.com
# Magazines-Business Today
ended questions.
three week.
limitations:
• www.unilever.com
QUESTIONNAIRE
Yes No
Hindustan Unilever
P&G
Nivea
Others
Super stores
Retail Stores
Others
Foods Deodorants
others
_______________________________________________
CONTENTS
NO.
1 Introduction
Limited
3 Oganisational Structure
4 Present status
6 Product profile
7 SWOT analysis
8 PEST analysis
12 New initiatives
13 Research Methodology
14 Analysis
15 Conclusion
16 Bibliography
17 Questionnaire