Advertising System of FMCG Item : A Contextual Investigation of

Hindustan Unilever Restricted

Hindustan Unilever is one of the world best brand having its branching in almost every
commercial sector from health care, foods, beverages, cleaning agents, personal care products,
water purifiers and consumer goods. Hindustan Unilever had 35 product brands in 20
categories and has employees about 18,000 employees with sales of 350 billion in 2017-18.
From 2010 HUL is more focusing on Sustainable living plans. They are now not giving focus on
urban market but after surveying and through other resources got to now that rural market in
about 70% of the India’s population .For the rural market they have launched easy accessibility
to cheap and good quality products by acquisition the other companies of having the same
products but with different market size acquire like the surf excel and wheel these both comes
under the same brand but are distributed at different market places. So the marketing
strategies of Hindustan Unilever is quit simple these days that to have access by every one at
every place with better quality.
Sixteen of HUL's brands featured in the ACNielsen Brand Equity list of 100 Most Trusted Brands
Annual Survey (2014), carried out by Brand Equity, a supplement of The Economic Times.
India’s largest Fast Moving Consumer goods company, touching the lives of most of the Indians
only because of its sustainable products and they have seen their the huge growth in food
production due to the reason that the rural people have much low or we can say economical
incomes .So to attract that kind is bit difficult that’s why the companies are making economical
products for them which are having good qualities and best pricing in their ranges. That why it
was not easy the companies took lots of time to survey and access people needs and the
companies quit patient to focus on their demand and chain supply systems which have major
and crucial points through which only the HUL have acquired such a large market share.
With this HUL was very much to successful to develop and spread towards the large market
with its insight in rural market and to make availability of the product everywhere.
Some of the moto of HUL is to contribute towards the sawacch bharat so with that campaign
the add up its personal initiation to promote and expand to the rural areas like “sawacch adaat
,sawacch bharat” through this they spread their products of hand wash and hygiene that comes
under personal health care.
WHAT WAS THE EARLIER RURAL MARKET SENARIO?
The Indian development story is cut spreading itself to India's hinterlands. The provincial
shopper showcase which grew 25 percent in 2008, is relied upon to contact US $ 425 billion out
of 2010-11 with 720-790 million clients. The association Budget for 2010-11 has climbed the
portion under the National Rural Employment Guarantee act (NREGA) to US $8-71 billion out of
2010-11 giving a lift to the country economy.
HOW FMCG’S ARE EFFICIENT TO FULFILL THE REQUIREMENTS?
According to my point of view , to answer about the this is in the demand chain management
and supply chain management with respect to the production which helps the companies to
spread and have the quality management also which can improve the productivity and
efficiency .
HOW WAS THE DISTRIBUTION PROCESS AND ITS MODEL WITH ITS OTHER PROJECT “SHAKTI”?
FMCG significant Hindustan Lever has begun an undertaking named "Shakti" for rustic
showcasing of their items in 2000. The task is a circulation model that b HUL built up in late
2000 to sell its items through ladies self improvement gatherings. The Shakti model trains ladies
from SHG to circulate HUL results of every day utilization, for example, cleanser, latrine cleanser
and shampoos. The Company is making interest for its items by having its Shakti vendors
teaching purchasers on viewpoints like wellbeing and cleanliness. With this new appropriation
model, the littler markets are currently being alluded to as 'Shakti markets'. HUL pursues center
point and talked appropriation model. It would be cost decrease strategy for both the HUL and
its sellers in rustic markets. In this conveyance model, organization will have hub wholesalers to
put the mass items which spreads 10 to 15 towns. Dealers get the products directly from the
hub distributors whenever they are out of stock. Distributors are the company mediators
between the company and dealers. HUL evolved project Shakti to access the rural as well as
commercial areas according to the production and product distribution.
WHAT ARE THE LATEST ACQUISATION OF HUL?
There are just about 30 organizations that have converged with HUL and the most recent and
the greatest is the GSK's buyer part which will help HUL to extend their profitability and making
more client aquiring in the market. As a feature of this steaming hot arrangement, wellbeing
beverages including Boost, Horlicks and Maltova – the pillars of GSK ch-will presently move to
the HUL stable. The exchange is all value merger with 4.39 portions of HUL being dispensed for
each offer in GSK ch India. The arrangement esteems the all out business at Rs. 31,700 crore.
GSK Plc( incorporate GSK Healthcare) will claim 5.7% of the blended element however will have
no portrayal on the board.
WHAT ARE THE MAJOR PROBLEM FACED BY HUL?
Few of the problems were increasing input cost, operation costs due to rise in raw material
costs, increase imitative and spurious products and stiff competition from other FMCG
companies.
One of the major problem is to handle so much production work of nearly 35 big brands that
are almost extended globally. So to be safe and steady with not letting any other company to
cross competition with a careful management.
Other factor that effect the revenue was the imitating products, popularity of HUL products is
so much that fake products are coming and sold in market which are majorly seen in rural areas
and effecting the equity of the HUL.
HOW HUL IS ADDRESSING THE MAJOR PROBLEMS?
The factors on which the problem arises is the initial cost for product i.e for input cost(raw
material ) and the operation cost , imitative products and much more. To overcome that few
strategies that are followed are:
 Influence and expansion of brand portfolio
 Competitive pricing
 Cost effective activities
HOW SHOULD THEY ADDRESS THE PROBLEMS?
Prompt activity plan:
The organization needs to initially separate the solid performing and income creating brands
from the non-performing brands. It is imperative to decide brand significance and surveying the
key rivals in the classification.
Momentary activity plan:
The organization needs to choose the fragments in which they have multiply the brand
portfolio. An examination must be directed to break down the exhibition of existing brand and
that of the contender's image.
Long haul activity plan:
Subsequent to deciding the class they need an all around planned performing checking
framework to dissect the exhibition of brands when the presentation of new brand.

WHAT ARE THE MAJOR COMPETITORS OF HUL ?

From past decade few major competitors of HUL are ITC, P&G, Colgate- Palmolive , Nestle and
Godrej. ITC is cut to cut competition through various brandings and through the new up comer
in this field due to which HUL is already facing the loses in market share to compensate that the
pricing and other factors of advertisement as the operation cost due to raw material cost is
increasing.