Jaipuria Institute of Management,

Vineet Khand, Gomti Nagar

Lucknow – 226 010
Academic Year 2019-2020
Batch 2019-21
Trimester 3rd
Programme PGDM
(PGDM / PGDM-FS / PGDM-RM)
Name of Course SMGT
Section A
Name of Faculty PROF. V.V Ratna

Nature of submission PROJECT REPORT

(Assignment / Project Report)
Topic of Assignment / Project HUL COMPANY

Deadline for submission 02.04.2020

Group/ Learning Team Number LTA01
Maximum allotted marks 20
Contribution of group/LT members in the assignment/project

Sl. Name & enrollment number of Contribution Signature

No. student
1 ADITYA RAJ SINGH [JL19PG010] EFE /EFAS MATRIX,IFE MATRIX ADITYA

2 QAZI UMAIR ARSHAD [JL19PG108] INTRODUCTION, SWOT MATRIX QAZI

3 RITIKA JAIN [JL19PG119] VISION & MISSION, CONCLUSION , RITIKA

STRATEGY ADOPTED BY THE COMPANY

4 SAKSHI SINGH [JL19PG129] ISSUE PRIORITY MATRIX , TOWS SAKSHI

5 SHREYA BHUTANI [JL19PG150] PESTEL ANALYSIS, VIRO SHREYA

6 VENKATESH SAIGAL [JL19PG174] PORTER ANALYSIS, MARKET PERFOMANCE VENKATESH

Date of receiving at PMC Signature of PMC staff

Penalty (marks to be deducted):

TABLE OF CONTENTS

1|Page
 Serial No. Contents Page No.
1. Introduction 02-03

2. Vision & Mission of the company 04-05

3. Analysis of the Macro Environment 06-08

4. Analysis of the Micro Environment 09-11

5. Issue priority matrix 12-13

6. EFE/EFAS Matrix 14-15

7. Internal Capabilities and Strengths (VRIO 16-17

Analysis)

8. IFE (Internal Factor Evaluation) Matrix for HUL 18-19

Personal Care

9. Swot Analysis Of Hul 20-21

10. Strategic Alternatives Using Tows 22-24

11. Marketing Strategy Of Hindustan Unilever 24-29

Limited

12. HUL Market Performance 30-31

13. Conclusion & References 32-33

INTRODUCTION TO HINDUSTAN UNILEVER LIMITED

2|Page
“Hindustan Unilever is one of India’s principal fast-moving consumer goods company with
more than 20 different classifications in the home care, personal care, and refreshments
segments. It has been professed as “The Golden Super Star Trading House” by the
Government of India with the Anglo-Dutch organization Unilever claims a dominant part of
around 52% stake in Hindustan Unilever Limited. Headquartered in Mumbai, India
Hindustan Unilever offers employment to approximately 15000 people as representatives and
an indirect employment to more than 55000 employees.”
“HUL established itself in 1933 as Lever Brothers India Limited and appeared as Hindustan
Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd.
furthermore, United Traders Ltd in 1956.”
“Hindustan Unilever was appraised as the most regarded organization in India for as far the
past 25 years by Business world, one of India’s driving business magazines in 2007.”

“HUL is the market chief in Indian consumer items with nearness in more than 20 customer
classes with more than 35 brands. Fifteen of HUL’s brands were highlighted in the Brand
Equity list of 100 Most Trusted Brands Annual Survey (2008) making its way to the Most
Trusted Brands List.”
“Two out of three Indians utilize the company items and HUL items have the biggest shopper
reach being accessible in more than 80 percent of crosswise over India due to its coverage
of more than 1million retails and its accessibility to around 7 million retail outlets.”
Some of the brands of HUL are: Cornetto, Knorr, Lipton, Magnum, Bru, AXE, Dove,
Lifebuoy, Lux, Pepsodent, Pond’s, Sunsilk, Tresemme, Vaseline, Breeze, Closeup etc.

Brands related to Personal Care:

 TIGI
 Tresemme for hair care
 Vaseline lotions, jelly for skin care
 Sure anti-perspirant
 Sunsilk shampoo
 Rexona soap

3|Page
  Pond’s cream and talc
 Pepsodent toothpaste
 Pears soap
 Lux body wash, soap and deodorant
 Liril soap
 Lifebuoy handwash and soap
 Lakme beauty merchandises
 Hamam soap
 Fair& Lovely products for skin lightening
 Denim products for shaving
 Dove hair-care range and skin products
 Close-up toothpaste
 Clinic Plus oil and shampoo
 Clear hair products
 Breeze soap
 Lever personal care and health care products
 Axe soap, deodorant and after-shaving lotion
 Aviance

“The products in personal care industry touch the lives of billions of people across the world,
right from the time one wakes up to brush his/her teeth to the time one goes back to bed with
a night cream for rejuvenating the skin.”
“The personal care segment basically includes cosmetics and toiletries manufactures. The
personal products market consists of fragrances, make-up, skincare, hair care and personal
hygiene products. Some of the important names in this arena are- Unilever, Colgate
Palmolive, Kimberley- Clark, Revlon, Alberto-Culver, and Avon etc.”
“Personal care products are a trusted and premium brand because of its unique association.
Unilever is positioning their product in the best of their customer satisfaction which also
differentiates them from their competitors. They are creating an environment for people to
have a life easy. Marketing strategies are to promote and market personal care product with
the aid of marketing to properly leverage the assets owned. Dealing with personal care
product is to display proper advertisement and a proper attitude towards promoting overall
feeling of caring the customers. There is a secret behind the activity of marketing personal
care product, and it lies in learning how to grow business effectively. There are several
strategies used to grow personal care product business, and most of them fall under 4
categories to attract more new customers, increase the average sales amount, make customers
buy every time they are in need of a personal care product and hold on to customers for life.”

4|Page
 VISION OF THE COMPANY

“Unilever’s corporate vision is “to make sustainable living commonplace. We believe this is
the best long-term way for our business to grow.”. This vision announcement puts emphasis
on sustainability, mainly among consumers. The following additives are tremendous in
Unilever’s vision declaration:”

1. Commonplace sustainable living

2. Best long-term way
3. Business growth

MISSION OF THE COMPANY

“Unilever’s corporate mission is “to add vitality to life. We meet every day needs for
nutrition, hygiene and personal care with brands that help people feel good, look good and
get more out of life.” This challenge declaration underscores how the enterprise satisfies
clients in numerous components of their lives. The following are the full-size components in
Unilever’s venture assertion:”

1. Adding vitality to life

2. Meeting everyday needs for nutrition, hygiene, and personal care
3. Helping people feel good, look good, and get more out of life

VALUE & MISSION ANALYSIS FOR THE NINE ELEMENTS

ON WHICH HUL FOCUS:
1) Customers: “Focus the business on satisfying customer desires as opposed to
spotlighting your products or services, The Unilever focus on brands and services that
are true for his or her patron, to cause them to appearance accurate and sense exact.
That’s what the customer wants.”
2) Products or Services:“Being the market leader in Indian consumer merchandise with
presence in over 20 purchaser categories together with soaps, tea, detergents and
shampoos amongst others with over seven hundred million Indian customers the use of
its products. We make several the arena’s excellent-recognized brands – all are on a
journey to lowering their environmental footprint and increasing their tremendous social
effect.”
3) Markets: “Production is done in more than 35 locations across India, with main hubs
being Assam, Uttaranchal, Himachal Pradesh, Pondicherry and Dadra & Nagar Haveli
and Marketing is done in all States of India, Project Shakti”
4) Technology: “The Unilever’s project is producing brands and services which can be
properly for their customer and precise for others. In fact, producing good brands and
services ought to use a wonderful technology. So, in their undertaking they success to
describe that they use notable technology to produce their brands and offerings.”

5|Page
5) Concern for Survival, Growth, and Profitability: “In this respect, the company will
conduct its operations prudently and will provide the profits and growth which will
assure ultimate success.”
6) Philosophy: “The challenge above is about philosophy. Unilever desires inform
customer that their product is ideal. With the philosophy, they are attempting to sell true
products that may influence to the customers destiny.”
7) Self-Concept: “HUL is committed to improve health, hygiene and livelihoods in their
communities.”
8) Concern for Public Image: “The mission isn't handiest telling approximately their
philosophy however also public image. Because they need to have their clients accept as
true with that, they could give desirable product to the clients.”
9) Concern for Employees: “The Unilever challenge declaration motivate their
employee’s large work to serve higher and the way the mission contributes to human
being’s lives.”

6|Page
 PESTEL ANALYSIS OF HINDUSTAN UNILEVER LIMITED

PESTEL Analysis is a tool that is used to study the external environment of any business or
industry. The factors studied under this analysis are Political, Economic, Social,
Technological, Environmental and Legal. This analysis helps the company in gaining
valuable insights into the factors affecting its operations and devising strategies in future
accordingly.

“It gives a bird’s eye view of the entire environment from various angles that one wants to
check and keep track of while contemplating on a specific idea or plan. More than just
understanding the marketplace, this framework also represents one of the vertebras of the
backbone of strategic management that not only defines what a company should do, but also
accounts for an organization’s goals and the strategies attached to them.”

“It may be so that the importance of each of these factors may be different to different types
of industries, but it is imperious to any strategy that a company wants to develop that they
conduct the PESTLE analysis as it forms a much more comprehensive version of
the SWOT analysis.”

Hindustan Unilever Limited is one of the most well established FMCG companies in India. 2
out of 3 Indians use the products of HUL every day. Even though the company is performing
extremely well in the personal care segment, such as hair care, skin care, oral care etc., it
faces stiff competition from other FMCG giants and several local players as well.

In order to study the external factors affecting the business, we perform the PESTEL
Analysis for Hindustan Unilever Limited as follows –

 POLITICAL FACTORS –

The very first element of the PESTLE analysis is the study of Political factors
affecting the business or industry. The political factors can play a huge emphasis on
the way a business functions as political factors create various opportunities as well
as obligations for a business.

The multiples taxes and levies are employed on the products which impacts the prices
of the commodities. Moreover, trade agreements which occur between countries leads
to the imposition of certain tariffs and regulations as well. These political factors
collectively operating in the external environment impact HUL and alter its strategies.

7|Page
  ECONOMIC FACTORS –

The study of the economic factors also plays a significant role in the smooth
functioning of any business. Both national and international economic markets
determine the economic conditions affecting a business. These economic conditions
dictate how consumers, producers and suppliers operate within the society.

The economic slowdown that the Indian and global economic market is facing at
present has affected the sales and growth rate of Hindustan Unilever Limited. Also,
the prices of raw materials used in the manufacture of the commodities keep
fluctuating. This impacts the profitability levels of HUL. Economic factors, as a
matter of fact, has the most impact on the running of any business.

 SOCIAL FACTORS –

Social factors refer to those factors operating within the society which influence a
person’s attitude, behaviors, preferences etc. The consumers preferences decide
which products they buy or cater to. The changes in population pattern also affect the
purchasing trends of the consumers.

Due to the growing awareness about sustainable products among the Indian
population, HUL implemented a ‘GO GREEN’ policy in the year 2010 and reduced
its carbon emissions by approximately 15000 tons per year. High population in both
the rural and urban areas has increased the sale of FMCG products in the country.
Growth in the disposable income of people has also increased the sales of HUL.
Moreover, the growing health awareness and consciousness has led to demand for
more natural and chemical free products. Big companies like HUL must market their
products accordingly in such a competitive and cut-throat market.

 TECHNOLOGICAL FACTORS –

The next important element we are going to talk about is technology. The rapid
advancement in technology has been impacting all businesses, big or small. These
advancements have changed the way in which these businesses operate. The
technological revolution has led to quicker responses and faster action-taking abilities
for the businesses. They must react to consumer demands much quicker than before.

HUL has also adapted itself to the market trends. It has employed the latest IT
technology and implementation of the best software services across its offices.
Innovation in its product line and commodities is also possible only due to the rapid
evolvement of the technology used by HUL. This has dramatically enhanced the
quality of products provided by HUL and has helped HUL create a trust in the eyes of
its consumer base.

8|Page
  ENVIRONMENTAL FACTORS –

The impact which the environment causes on any business come under the purview of
environmental factors. The location of a business impacts the trade. So does the
climatic conditions prevailing in the area. The waste disposal laws, and energy
consumption practices are also studied under the environmental factors.

Hindustan Unilever Limited promotes the usage of sustainable and renewable

resources. The products are designed such as to make them safe for the consumers.
The company tries to use eco-friendly materials right from the packaging to design.

The company wishes to be an environment friendly business and they have been
working since decades in the same direction. This has helped the company to grow
and cater to its customers in the most apt manner.

 LEGAL FACTORS –

There are certain laws and regulations which affect the business environment
substantially. No business can function without complying with these legal
regulations. There are also certain policies which every company must maintain.
Legal factors basically refer to how the laws affect the way a business functions and
the way in which the consumer responds to the business.

Consumer laws and various safety standards are some of the measures which
Hindustan Unilever Limited must comply with. Certain labor laws must be met as
well. Moreover, HUL is a consumer goods company. More than 400 brands are
owned by the company in various segments. Every brand has various locations and
stores as well. This makes them subject to follow product safety laws, copyright, tax
laws – both national and international, laws relating to the health and safety of
employees, et cetera.

9|Page
 Hindustan Unilever’s Five Forces Analysis
Porter’s Five Forces Framework is a technique for investigating rivalry of a business. It
draws from modern association (IO) financial aspects to infer five powers that decide the
serious force and, in this way, the allure (or absence of it) of an industry regarding its
productivity. Unilever manages a wide assortment of outside elements, considering the
degree of its activities in the worldwide buyer merchandise showcase. Such outer variables
lead to varieties in the powers of the five powers affecting the business. The following are
the intensities of the five forces in affecting Unilever:

1. COMPETITVE RIVALRY OR COMPETITION

Competition is a significant power in Unilever's industry condition. This segment of

the Five Forces examination distinguishes the outside elements that present the effect
of firms on one another. The solid power of serious contention against Unilever
depends on the accompanying outer components and their powers:

 High number of firms (strong force)

 Low exchanging costs (strong force)

There are numerous organizations working in the personal care industry. This outside factor
forces a solid power on Unilever For instance, it is simple for buyers to change starting with
one firm then onto the next. Therefore, a significant level of rivalry is appeared right now
Unilever's Five Forces examination, featuring the need to consider serious competition as a
high-need power in the organization's business condition.

2. CUSTOMER’S BARGAINING POWER

Unilever's industry condition relies upon the reaction of shoppers to its items. The impact of
purchasers on business execution is considered right now the Five Forces investigation.
Unilever must address the accompanying outside variables that lead to the solid power of the
dealing intensity of clients:

 Low exchanging costs (strong force)

 High value of data (strong force)
 Small magnitude of distinct consumers (weak force)

The low exchanging costs make it simple for buyers to move from Unilever's items to other
organizations' items. This outside factor adds to the solid force of the negotiating intensity of
purchasers. What's more, customers approach high calibre of data about buyer merchandise,
making it significantly simpler for them to choose while moving from Unilever to different
suppliers. For instance, purchasers can look at items dependent on online data. The little size
of an individual purchaser's buys has negligible effect on Unilever's benefits.

3. SUPPLIERS’S BARGAINING POWER

Suppliers sway Unilever's industry condition by influencing the degree of supply accessible
to firms. This area of the Five Forces investigation shows the impact of suppliers on

10 | P a g e
organizations. Below mention are the outer variables that add to the moderate power of the
dealing intensity of providers on Unilever:

 Reasonable size of individual suppliers (moderate force)

 Judicious overall supply (moderate force)

While Unilever has enormous providers like outside firms that supply paper and oil, the
normal provider is moderate in size. This outside factor forces a moderate power on the
shopper products industry condition. Essentially, the moderate degree of the general
stockpile adds to such huge however constrained impact of providers. Different firms in the
business are comparably influenced. As appeared right now the Five Forces investigation of
Unilever, the dealing intensity of providers is a critical however moderate thought in the
shopper merchandise industry condition.

4. THREAT DUE TO SUBSTITUTE

Substitutes can diminish Unilever's incomes and the quality of firms in the personal
care industry condition. The effect of substitution is resolved right now with the Five
Forces investigation. For Unilever's situation, the accompanying outer variables are
answerable for the frail power of the danger of substitution:

 Short switching costs (strong force)

 Little substitute availability (weak force)
 Small performance to price ratio of substitutes (weak force)

The low changing costs empower buyers to handily utilize substitutes to Unilever's items.
This outside factor forces a solid power on the organization In any case, the general effect of
substitution is debilitated on account of the low accessibility of substitutes. In connection,
most substitutes have low execution with negligible or unimportant cost contrast when
contrasted with purchaser merchandise promptly accessible in the market. This condition
makes Unilever's items more appealing than substitutes, in this manner further debilitating
the power of the risk of substitution. This area of Unilever's Five Forces examination shows
that the danger of substitutes is a minor issue in the business.

5. THREAT TO NEW FIRMS

Unilever rivals built up firms just as new firms in the customer products showcase. This area
of the Five Forces investigation thinks about the impact of new firms on the business
condition. The accompanying outer components make the feeble power of the danger of new
participants against Unilever:

 Small switching costs (strong force)

 High cost of product development (weak force)

The low changing costs empower new participants to force a solid power against Unilever.
For instance, buyers can without much of a stretch choose to attempt new items from new
firms. Nonetheless, it is expensive to manufacture solid brands like Unilever's. This outer
factor debilitates the power of the risk of new participants against the organization.

11 | P a g e
 Issues Priority Matrix (IPM)

A business is affected by external environment also and internal environment also and for
survival of business there must be proper scanning of existing forces that affects the growth
of the business so, for such reasons there are various scanning techniques used by
organizations Issue Priority Matrix is one of them.
“One way to identify and analyse developments in the external environment is to use the
issues priority matrix as follows:”
 
1. “Identify several likely trends emerging in the societal and task environments. These are
strategic environmental issues – those important trends that, if they occur, determine what the
industry or the world will look like soon.”

2. Assess the probability of these trends occurring from low to high.

 
3. “Attempt to ascertain the likely impact (from low to high) of each of these trends on the
corporation being examined.”
“A corporation’s External Strategic Factors are those key environmental trends that are
judged to have both a medium to high probability of occurrence and a medium to high
probability of impact on the corporation. The issues priority matrix can then be used to help
managers decide which environmental trends should be merely scanned (low priority) and
which should be monitored as strategic factors (high priority). Those environmental trends
judged to be a corporation’s strategic factors are then categorized as opportunities and threats
and are included in strategy formulation.”

Issue Priority Matrix for HUL Personal Care

Economic Issues:
1) Inflation or Recession
2) Hike in global currency exchange value

Social Issues:
3) Lifestyle changes
4) Education level

Political
5) Disruption like demonetization
6) Goods & service tax

12 | P a g e
Technological Issues
7) Usage of social media for marketing
8) Adoption of more automated technology

Issues from Porter’s Five Forces:

9) Presence of number of Rivals
10) Industry growth
11) Distribution

IMPACT ON CORPORATES
HIGH MEDIUM LOW

1, 3, 7,10
HIGH

POSSIBILITY OF 8,9, 2,6,10

OCCURRENCE MEDIUM

LOW 4, 5,

EFE MATRIX

13 | P a g e
 EXTERNAL FACTORS WEIGHT RATING WEIGHTED COMMENTS
SCORES

OPPURTUNITY
1. Merger and 0.20 1 0.20 It turns into cost
acquisition to efficiency and
strengthen the brand 0.15 3 0.45 promotes
2. Increasing economies of scale
purchasing power of It turns in more
people sales
1. Target those market 0.10 3 0.30 leads to market
where local brand penetration
competitors are in
the majority 0.05 2 0.10 Potential customer
2. Target the rural in rural market
consumers through
entertainment
programmed
THREATS
1. Customer from 0.15 2 0.30 Cost Leadership can
unbranded and local prevent
products can hurt
Hindustan Unilever’s 0.10 2 0.20 When entry of
market competitor takes
2. Existing customer place
base as a captive
market source
1. FDI in retail 0.05 4 0.20 Increase
allowing competition
international brands 0.20 6 1.20
2. Intense and Free entry leads to
increasing intense competition
competition amongst
other FMCG
companies
TOTAL 1.00 2.95

14 | P a g e
15 | P a g e
 Internal Capabilities and Strengths (VRIO Analysis)

VRIO is one of the emerging analytical tool or technique which is used to assess and analyse
any business organization’s internal capabilities and resources so as to know if these
resources can become a competitive advantage for the business in the long run or future.

The main idea behind the VRIO concept, developed in the year 1991, was to assess the
internal resources or strengths of the business and to analyse whether they can become a
source of competitive advantage or not.

The analysis asks four basic questions so as to check the competitive advantage of the
internal resource. The four questions are as follows –
 Is the resource or capability Valuable?
 Is the resource or capability Rare?
 Is the resource or capability costly to Imitate?
 Is the firm Organized enough to capture the value of those resources?

An internal resource which fulfils all the above conditions are believed to be competitively
advantageous for the business.
Further, we present below the VRIO application and analysis for Hindustan Unilever
Limited.

16 | P a g e
 VRIO TEST

HUL’s Valuable Rare Inimitable Organization Competitive Performance

Capability Implication Implication

Strong brand Yes No No Yes Competitive Normal profits

visibility Parity

Market Yes Yes No Yes Competitive Above normal

leadership Advantage profits

Extensive & Yes Yes Yes Yes Competitive Above normal

Integrated Advantage profits for
Distribution prolonged period of
System time

High brand Yes Yes Yes No Competitive Above normal

awareness Advantage profits

Innovative Yes No No Yes Competitive Normal Profits

Parity

With this, we come to the conclusion that Hindustan Unilever Limited’s strongest resource or
capability is its extensive and integrated distribution system. It adds value to the organization
and helps it fulfil the growing market demands. This capability is rare for HUL and isn’t
exploited by its competitors. Moreover, it is not easily imitable by others to build a
distribution network as strong as HUL. This feature plays significant role in company
success. Reduces cost of transportation and storage.

17 | P a g e
 IFE (Internal Factor Evaluation) Matrix for HUL Personal Care

S.NO FACTORS WEIGHT RATING WEIGHTED COMMENTS

. SCORE
STRENGHTES
1. Contribution of home and 0.12 4 0.48 It leads to large
personal care to net sales portion of revenue
is72.9% and profit generation
2. Marketing and Selling 0.08 2 0.16 It will leads to
expenses decreased by 12.5% decrease in expenses
massively
3. Strong portfolio of brands and 0.09 3 0.27 It will leads to attract
diversified product range large number of
customers for buying
different kinds of
products
4. Contribution to Total 0.10 3 0.30 Contribution of
Turnover is 27% personal care in total
turnover leads to
massive revenue
5. Holding 15% shares of total in 0.11 4 0.44 Leads to capture
Indonesian Stock Exchange businesses in other
territories
WEAKNESSES
1. Decreasing market share in 0.10 3 0.30 Nirma detergent and
certain category of products ghadhi detergent
like detergent affecting the sales of
HUL detergents in
rural India
2. Large number of brands in 0.15 4 0.60 Many brands will
various items classification retain the customer
base and trust but
leads to more
focussed
3. HUL faced controversies in 0.15 2 0.30 Some cases for the
skin lightening creams controversies against
HUL lightening
cream
4. High advertising cost 0.05 2 0.10 HUL is spending
good amount on
advertisement it will
leads to increase in
expense
5. Declining export level 0.05 4 0.20 Export of HUL
product manufactured
in India exported to
nearby nations
TOTAL 1.0 3.15

18 | P a g e
  All the internal factors of HUL Personal care that are identified in the internal audit
process are listed. Ten factors, five of strengths and five of weaknesses of the
organization. The strength of the organization is listed first and then the weaknesses
of the organization.
 The certain weights are assigned to each factor that range from 0.0 to 0.15. the weight
given to the factors is based on the success of that factors in the industry which means
that such factors which is not much successful in the industry has been given higher
weight while that factors which is not much successful in the industry has being given
lower weight.
 The rating is based on the intensity of weakness and strength.
 In the fourth step the weight of each factors is multiplied by its rating so that
weighted score for every factor can be ascertained.
Finally, the last step, all the weighted scores of individual variables are added in order to find
out the total weighted score of the organization.

19 | P a g e
 SWOT ANALYSIS OF HUL

SWOT analysis is a simple yet an incredible asset to assist a business with building up a
business system irrespective of one is assembling a startup or directing the current
organization.
Strength and weakness are internal while the opportunities and threats are external to
the organization. SWOT analysis arranges the business opportunities, threats, strengths and
weaknesses in a basic two-by-two framework.

STRENGTH-
1. Managing diverse businesses by multiple successful sub brands under the HUL name.
2. Market Leader in consumer goods: According to Nielsen data 2 out of three Indian
consumers use HUL product.
3. Distribution Channel- Much better and vast distribution channel in India compared to
competitors specially in the rural areas.
4. Innovation- HUL has sophisticated research and development facilities.
5. Excellent Management- HUL has experienced management, credibility and visibility
in the market by connecting the audience with its advertisement.
6. CSR & Sustainability- Some of the major CSR activities of HUL: Greening
Barrens, Shakti – Changing Lives in Rural India, Health & Hygiene Education.
CSR activities and sustainability practices not only enhances company’s image but
also bring the spirit of entrepreneurship among farmers.

20 | P a g e
WEAKNESS-
1. Unrelated Diversification- Diversification is there into various product lines where
the lack of knowledge prevails would be risky.
2. Competition- Competition from various leading brands in personal care like ITC,
P&G.
3. Lack of pricing power in personal care businesses.
4. Large number of brands in different product categories
OPPORTUNITIES-
1. Strategic Acquisitions- HUL can increase its product line by acquiring products from
other companies by keeping an eye on the existing distribution network.
2. Growing in the purchasing power and lifestyle of people to increase the demand.
3. Per capita “consumption of personal care products in India is the lowest in the world
offering an opportunity for HUL’s soaps, shampoos and fragrances under Wills
brand.”
4. Rural Market- HUL has the golden opportunity to tap in the rural market to increase
its market share and its visibility and credibility among people in rural as well as
urban area.
5. The competitors of HUL lack in financial banking and this can be a major
opportunity of the company to grab upon.
6. Technological advancement- Spending money on research and development of the
company.
7. A premium market in India is expanding where people want to use products which
are made from natural or herbal ingredients.
THREATS-
1. Competition- Tough competition from domestic as well as international players such
as P&G, ITC, Colgate Palmolive, Reckitt Benckiser, Marico.
2. Foreign direct investment in retail thereby allowing international brands.
3. Competition from unbranded personal care products.
4. Exchange rate in various countries.
5. Patanjali looks one of the biggest threat to them in future because of its Unique
selling strategy of being one company offering products made by natural or herbal
ingredients that too in feasible prices.

21 | P a g e
 STRATEGIC ALTERNATIVES USING TOWS

Strength and weakness are internal while the opportunities and threats are external to
the organization. SWOT analysis arranges the business opportunities, threats, strengths and
weaknesses in a basic two-by-two framework.

22 | P a g e
Swot Analysis of HUL are as follows –
External Threats
1. Aggressive
Competition
2. Price of Commodities
3. Buyers Power
Internal Weaknesses WT (Retrenchment)
1. A large number 1. Innovative advertisements 1. They need to be more
of brands in can help them in tackling
various item with competition.
classifications 2. They can collaborate with
2. Decreasing local producers.
Market Share 3. HUL in its those products 2. HUL needs to produce
where need of bottles are
there needs to start
evolving sustainable bottle
that does not use Fossil
fuels and is more
recyclable to help to be
environmentalism.
Internal Strengths ST (Stability or Defensive)
1. Strong brand 1. HUL can increase their
visibility MRP of the products as
2. Market leader they have a strong
3. Innovative customer Loyalty.
4. Extensive & 2. They also have a very
Integrated extensive production and
Distribution distribution network
System which is their strength in
5. High brand competing with
awareness competitors.
6. shaping the life of 3. Being one of the top
1.3 billion companies in its
people daily respective industry they
have a very strong brand
image and large market
share which makes them
superior in the eyes of
consumers.
23 | P a g e
External Opportunities
1. Increasing Population
2. Technological
Advancement
3. Expanding Market
4. Increasing Income
Level
WO (Stability or Defensive)
technologically advanced
so that they can build a
more sustainable
packaging.
environmental friendly
products so that they can
enhance the brand image
and capture market share.
SO (Growth or Offensive)
1. Due to the rise in
population new markets
are created which can be
targeted for market
expansion.
2. They can take advantage
of technological
advancement to increase
their production and
expand their distribution
channel which would
enable their market
penetration in developing
countries.
3. They can work to increase
customer loyalty.
 MARKETING STRATEGY OF HINDUSTAN UNILEVER
LIMITED
1) HUL’S FOCUS ON NEW PRODUCTS, DATA ANALYTICS TO BOOST
MARGINS

“India’s biggest consumer company Hindustan Unilever (HUL) would harness innovation,
new product lines, and an evident aspirational consumer switch toward premium goods to
boost volumes and margins.
One of the analyst's takeaways reached was the management's statement of using
sophisticated data analytics skilfully in demand forecasting. It will allow HUL to accelerate
growth and cut costs. HUL is expected to deploy distinct operating strategies across India in
14 clusters. The business could gain market share in those clusters by launching regional
products. Analysts point out that the company can gain more market share in this segment as
penetration levels are still in low single digits.”

“On personal care products, HUL has adopted the strategy of enhancing its exposure to
products based on natural ingredients. HUL already has brands such as Indulekha and Lever
Ayush. It plans to reposition its old soap brand Hamam in the naturals space with the launch
of the Neem, Tulsi and Aloe Vera variants. Also, Lifebuoy is launched with a ‘Turmeric’
variant. Personal care contributes 45 per cent of its total revenues and 55 per cent of its
operating profit.””

24 | P a g e
2) HUL’S NEW GROWTH STRATEGY:

“After having fought a bitter price battle for market share with its rivals, Hindustan Unilever
Ltd (HUL), Indian subsidiary of the Anglo- Dutch consumer goods company Unilever Plc, is
now working on a new growth strategy for its laundry business.”

“Price cut or hike is not a long-term growth strategy. Pricing, in fact, is now passé,” “insists
Sudhanshu Vats, category head, home care. “Our strategy for growth, now is focused on
product innovation, new consumer and retail trends and aggressive marketing and
promotions,” he said.”

“This comes even as Unilever is scouting for a potential buyer for its laundry business in the
US.”

“HUL says it is quite upbeat about the segment and says the laundry segment is one of its
“key growth areas. “We have done key innovations across the product portfolio and it is
working for us,” says Vats. “We successfully migrated from Rin Supreme to Surf Excel and
Wheel Smart Srimati—which was rolled out in 2006—is also on the right track.””

“HUL’s market share in the laundry segment grew to around 37.8% in the quarter ended June
from 35.5% in the same period last year, according the market research firm ACNielsen.
However, this time, the increase was not at the expense of price war with its multinational
rival Procter & Gamble Co. P&G also gained 0.5 percentage points, up to a 7.6% share.
Nirma Ltd, the Ahmedabad- based manufacturer, however, saw its market share dip by 1.7%
percentage points to 13.5%.”

“Wheel, a value brand that, according to Vats contributes around 50% of HUL’s laundry
segment revenues, increased its market share by 2 percentage points in the same period, with
a total share of about 18%.”

“According to ACNielsen, the laundry industry in India was worth Rs7,908 crore in 2006
and rose 8.4% over 2005. HUL doesn’t report its laundry revenues separately but puts them
under the soaps and detergent category.”

“In 2006, HUL’s soaps and detergents segment contributed around Rs5,596 crore to the
company’s total sales of Rs12,103 crore. “Laundry has been an attractive segment in the past
and is likely to keep growing soon. The recent price war between companies led to erosion in
their profitability but now, the industry is stabilizing,” says Unmesh Sharma, an analyst at
Macquarie Securities here.”

“According to Vats, the laundry business is witnessing a surge in demand from cities and
HUL is focusing on Tier I and II cities to tap that demand.”

2) SUSTAINABILITY STRATEGY
“HUL have a long-standing set of values and principles that guides our behavior. These
values underpin the approach to sustainability. HUL have always been a business driven by a
strong set of values. Today those values are as important as ever. They now know that the
well-being of society and the environment is critical to their ability to grow.”
“Unilever’s vision is to double the size of its business while reducing the overall impact on
environment. This new vision recognizes that the world is changing, populations are growing

25 | P a g e
and the rise in incomes is fueling a growth in the demand for consumer products. Products
like ours rely on an increasingly constrained set of natural resources, whether it is fuel, water,
or other raw materials.”
“In Hindustan Unilever Limited (HUL), the principle of Corporate Responsibility (CR) is an
integral part of our commitment to all our stakeholders – consumers, customers, employees,
the environment and the society that we operate in.” 

“Today, India is battling multiple issues like water scarcity, poverty, and problems arising
out of low awareness of health, hygiene, and nutrition. If these issues are not addressed soon,
they will create insurmountable barriers to business growth. The company believe that
helping society prosper and ensuring a sustainable future for the planet goes hand in hand
with the goal of ensuring growth that is competitive, profitable, and sustainable for the
organization.”

“The contributions must be substantial and sustainable, which is why they are not just
banking on their philanthropic programs but are transforming their core business practices as
well. Even the seemingly small innovations in their brands and business processes can lead to
a big difference in society as they touch the lives of two out of every three Indians.”

“For example, if one household uses Surf Excel detergent, it can conserve two buckets of
water per wash. A million Indian households using Surf Excel can save enough water for
meeting the basic hygiene needs of many Indians. Thus, small individual actions multiplied
with large consumer base will make a big difference in combating the issues society faces.”

“They will further demonstrate that successful business strategies are driven by responsible
business practices. The key to this approach is developing a CR framework which integrates
the social, economic, and environmental agenda with business priorities – growing markets,
maintaining the competitive edge, enjoying goodwill in the communities the company
operate in, and building trust and an exceptional reputation. Hence, in the future, the three
cornerstones for CR integration with business at HUL will be:”

Growing markets responsibly: 

“The company will address issues related to hygiene and nutrition through product
innovations and awareness. Gathering information about the concerns expressed by
consumers, communities, and stakeholders can help them to identify opportunities for
innovation at the category, brand, and marketing plan level. They have a very strong and
trusted position in India, and they can leverage this to their competitive advantage.”

Ensuring sustainable practices in our operations:

“To secure a thriving future, they need to establish sustainable sources for raw materials.
Being a company that is heavily dependent on water, agriculture, fuels and petrochemicals,
they must plan now for a future in which water could be scarce, agriculture could be under

26 | P a g e
pressure, and fuels will be expensive. Their consumers add up to two-thirds of the Indian
population, hence addressing sustainability issues is a high priority.”

Building a good reputation through responsible leadership: 

“CR is one of the key components of reputation and trust. A good reputation can be a major
competitive advantage and can build employer brand and consumer loyalty.”

3) ENGAGING WITH OUR STAKEHOLDERS

“Listening to others and learning from the stakeholders informs decision-making, strengthens
their relationships and helps them succeed as a business.

Stakeholder engagement for identifying issues that are material to us:

They appointed Sustainability International to conduct stakeholder engagement on our
behalf. They analyzed and assimilated the expectations of stakeholders regarding issues that
matter to them. These expectations were like the areas identified by us, where HUL's
contribution could create a significant impact.”

Scoping the areas for intervention

“While the issues are many, it is necessary to address them in a systematic manner to make a
real difference. Instead of spreading thin across all issues, we have chosen to work on five
areas to ensure a deep impact.

These areas have been arrived at using the output from our stakeholder engagement process
and areas which we are poised to address through our business.”

27 | P a g e
 4) GOVERNANCE
“The company aim to have strong governance structures in place to manage our social and
environmental responsibilities carefully and thoughtfully.”

“Corporate Responsibility at HUL is led by the CEO and the Management Committee (MC)
of the company. The MC governs the sustainability strategy with a view of key strategic
approaches and seeks reports on impacts and efforts against clear targets.”

“Each of the nine cells (in the diagram shown in Sustainability strategy section) is owned by
an MC member. For the execution of the strategy there is a team of 12 Sustainability
Governing Council (SGC) members based on their respective functions.”

Sustainability Governing Council

“The Sustainability Governing Council is responsible for:

 Recommending sustainability priorities for approval by the MC and monitoring its

progress

 Recommending HUL's positions on critical issues for approval by MC

 Receiving stakeholder feedback

The role of the SGC is formalized, with a clear mandate and terms of reference outlining its
mission, purpose, membership, meeting schedule, and reporting systems.”

28 | P a g e
EXTERNAL COMMENTARY

“HUL shared their sustainability strategy with leading external experts from diverse
backgrounds. Below one can read their comments on the company sustainability strategy.”

“View of leading external experts on HUL’s sustainability strategy

 ‘The long-term strategy and roadmap provide a comprehensive approach towards meeting
future sustainability challenges, especially with respect to resources such as water and
energy.’

- Shirish Sinha, Head Climate Change & Energy Programmed, WWF

 ‘We are happy with the focus on linking the business processes with corporate
responsibility. Social impact must be central to business processes, which is brought about by
HUL's strategy. Corporate responsibility via business strategies is the way forward.’

- Ibrahim H. Rehman, Director, Social Transformation Division, TERI

 ‘The tying up of your strategic threads is excellent. Ensure that you carry it through action!’”

5) COMPETATIVE STRATEGY
“As Competition Heats Up, India’s Top Consumer-Products Company Woos Affluent
Shoppers with Global Brands Like Dove, While Cooking Up Its Foods Biz.”
“The middle-aged Briton strolling the aisles and checking out the products doesn’t attract
much notice from other shoppers in Mumbai’s Hyper city, the India hypermarket chain.
That’s how Douglas Baillie likes it. Baillie, the managing director of Hindustan Unilever,
India’s premier consumer-products company, wants to see how his products are stocked,
what consumers are buying, and how shoppers are reacting to competitive brands. It’s
primary market research at its most elemental, and it’s best done incognito.”
“Hindustan Unilever has traditionally relied on small traders and mom-and-pop corner stores
to retail its products. But India’s recent retail boom has created large stores and malls, so the
company wants to make sure it’s in with the new marketing crowd. Hence Baillie’s Hyper
city visits, and the calls he makes on the headquarters of the big retail chains.”
“This is quite a change for Hindustan Unilever, whose executives used to have emissaries
make obeisance at Lever house in downtown Mumbai. “I can’t imagine any head from Lever
House ever visiting other company offices like this,” says an amazed Damodar Mall, chief
executive of innovation and incubation at Pantaloon Retail, India’s largest retailer and a
former manager at Hindustan Unilever.”
6) OTHER STRATEGY
 “Grow ahead of market by leading market development activities.”
 “Leverage positive impact of growing Indian economy on consumer spending.”
 “Grow a profitable foods and top end business.”
 “Grow the bottom-line ahead of top line.”
 “Strong commitment to sustainable development.”

29 | P a g e
 HUL Market Performance

In the personal care segment Company continued to focus on key areas –

 Strengthening core brands,
 Accelerating premiumization of the portfolio,
 Driving market development at scale,
 Entering white spaces
 Scaling up play in naturals.
The scattering and utilization of the classes where the Company capacities, have a solid
headroom to develop, showing the long-haul potential in the BPC showcase. The business
recorded a strong development drove by premiumisation during the year. Healthy skin saw
quickened development across portions including face care, face purging and hand and body.
Development in centre arrangement of Skin Care was driven by acceptable energy in Fair
and Lovely and solid development in Pond's and the excellent piece of the portfolio.
All the worth packs propelled in the cream run in Pond's, Vaseline and Vaseline Petroleum
Jelly, Lakmé Aloe range and Lakmé Lip Love did well during the year. The powder business
developed firmly with the dispatch of Pond's Starlight Talc variation. The facial purging
business likewise observed solid development during the year. Lakmé proceeded with its
fantasy run, developing over the portfolio (Core, 9to5, Absolute), in the wake of entering the
rundown of your Company's ' 1,000+ crore marks a year ago. Dispatch of purchaser focussed
developments, for example, the Kareena Kapoor Khan assortment – an intense and delightful
premium scope of cosmetics, helped the brand convey outstanding outcomes. Lakmé Fashion
Week, the most carefully followed design occasion on the planet, which has been a marquee
occasion for the brand, kept on picking up in size and scale and helped improve the brand
value with customers.
The online business channel is rising as a key development driver for the class and your
Company proceeds with its attention on this chance. Skin Cleansing development was driven
by the top notch some portion of the portfolio-Dove, Pears and Hamam. The freshness
variations inside Lifebuoy, Lux and Liril progressed admirably. Lux facilitated the third
version of the Lux Golden Rose Awards (LGRA) to commend the best ladies’ entertainers in
Bollywood that matched with the brand's 90th Anniversary. One of the most elevated
evaluated grant shows of 2018, LGRA further helped manufacture the value of Lux as the
'Magnificence Soap of the Stars' with shoppers. In Haircare, your Company supported its
solid development energy with new dispatches and enactments consistently.
The exhibition was additionally helped by vigorous development n TRESemmé, Dove and
Indulekha. TRESemmé, on its fifth commemoration in India, was relaunched with new
bundling and a progressively fragrant definition. TRESemmé was likewise the official hair
accomplice of the Lakmé Fashion Week, restoring its qualification as the selection of
experts. During the year, Dove turned into India's No.1 hair care brand. Pigeon cleanser and
conditioner territory was relaunched with expanded degree of Keratin Actives for harm fix.

30 | P a g e
Indulekha entered the cleanser class and drove the charge in the naturals section in Haircare.
Brylcreem propelled a selective scope of men's preparing items for hair and whiskers - a first
for the Company. The range was co-made with Amazon, utilizing new computerized plans of
action in web-based business. The Company's continued endeavours helped recovering some
energy in the Oral Care classification.
The Company relaunched Close-up and Pepsodent with a revived recommendation and
correspondence. With the dispatch of LEVER ayush and normal variations in Close-up, the
Company kept on building its qualifications into the developing Oral Care naturals portion.
The year saw the relaunch of Pepsodent Germicheck toothpaste and Pepsodent Clove and
Salt toothpaste with characteristic earth enacted recipe utilizing exclusive germ battling
innovation for dependable germ insurance. Pepsodent Expert Protection Complete, Germ
care and Whitening variations were additionally relaunched. Antiperspirants performed well
with advancements and market improvement driving the development.
Axe Ticket – a pocket measured aroma pack through its logical, computerized and minute
advertising initiations kept on building the customer establishment. Rexona, our driving
enemy of perspirant brand, conveyed extraordinary outcomes in select geologies and has now
been turned out broadly. The Company additionally reinforced its 'naturals' system through
its three-pronged methodology. The ace brand LEVER ayush propelled over numerous
classes like oral consideration, haircare, healthy skin, skin purging kept on performing
admirably in south India. The second leg of the methodology is building pro brands like
Indulekha. Indulekha has conveyed great execution in both oil and shampoos, with a one of a
kind item plan and unmistakable bundling. The third leg of the 'naturals' system includes
supporting different regular variations inside our current arrangement of items like Lakmé
Aloe Vera go, Lifebuoy neem and turmeric, Fair and Lovely Ayurveda and so forth.

31 | P a g e
 CONCLUSION

“HUL being India’s largest FMCG Company with 35 brands and 20 different categories is
doing very well, business enterprise is likewise very focused on mission assertion and
imaginative and prescient assertion and working accordingly, the financial announcement of
the corporation is also right and there's continually increment in turnover of the business
enterprise. The board of directors, the control the middle managers all of us is responsible
and is dependable to the business enterprise, the principle cause of company’s achievement is
it's miles hold its fine, coming with new products, making improvements in the product,
maintaining its charge and the maximum vital thing that's taking HUL towards continuous
fulfilment is the robust distribution channel and the extensive and considerable selling
method. The corporation has extra than 30000 people in distribution channel which provide
the enterprise an aggressive aspect, and every year in annual document the enterprise makes
a strategy and work consistent with the strategic awareness.”

Recommendations to the enterprise

• “The company should maintain its quality.”
• “The company should focus on herbal merchandise”
• “The company should always keep an eye on competitors”
• “As the opposition in FMCG sector is turning into extreme it’s very vital to hold a track on
it.”
• “The company should always survey about the likeness of the product of the company with
the intention to give the organisation the extra edge.”
• “Company should always focus on taste and preference of the consumers”
• “The organization should do more CSR activities which will help in good word of mouth
for the company.”

32 | P a g e
 REFERENCES

For the purpose of completion of this project, we used the strong concepts which were learn
by us during our classroom lectures. Moreover, we have also cited the information from
various sites. Below we list the site the links used for the same –

 http://panmore.com/unilever-vision-statement-mission-statement-analysis

 https://www.hul.co.in/about/who-we-are/purpose-and-principles/our-purpose/

 https://pestleanalysis.com/pestle-analysis-of-unilever/

 https://www.hul.co.in/

 http://www.fernfortuniversity.com/

 https://www.hul.co.in/Images/agm_speech_2003_focus-on-growth_tcm1255-
434446_en.pdf

33 | P a g e