Project Report on

HINDUSTAN UNILEVER LIMITED

INTERNATIONAL SCHOOL OF BUSINESS AND MEDIA,
PUNE

Submitted to
Prof. Mahesh Renguntwar Submitted by
Aditya Nemade
Ananya Saxena
Ankitha Roy
Arunava Pal
Chaturvedi Narsingoju

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INTRODUCTION

Hindustan Unilever Limited (abbreviated to HUL), formerly Hindustan Lever

Limited, is INDIAs largest consumer products company and was formed in
1933 as Lever Brothers India Limited. It is currently headquartered in
Mumbai, India and its 41,000 employees are headed by Harish Manwani, the
non-executive chairman of the board. HUL is the market leader in Indian
products such as tea, soaps, detergents, as its products have become
daily household name in India. The Anglo-Dutch company Unilever owns a
majority stake in Hindustan Unilever Limited. The company was renamed
in late June 2007 as "Hindustan Unilever Limited".

Some of its brands include Kwality wall’s ice cream, lifebuoy, Lux, Breeze,
Liril, Rexona, Hamam, Moti soaps, Pure it water purifier, Lipton green tea,
Brooke Bond tea, Bru Coffee, Pepsodent and Close Up toothpaste and
brushes, and Surf Excel, Rin and Wheel laundry detergents. Kissan
squashes and jams, Annapurna salt and atta, Pond’s talc and creams,
Vaseline lotions, Glow and Lovely creams, Lakme beauty products, Clinic
Plus, Clinic All Clear, Sunsilk and Dove shampoos, Vim dish wash, Ala
bleach and Domex disinfectant and Axe deo spray.

HUL has produced many business leaders for corporate India. It is referred
to as a ‘ CEO Factory” in the Indian press for the same reasons. It’s
leadership building potential was recognized when it was ranked 4 th in the
Hewiit Global Leadership Survey 2007 with only GE, P&G and Nokia ranking
ahead of HUL in the anility to produce leaders with such regularity.

HISTORY OF UNILEVER

William Hesketh Lever established Lever Brothers in 1885. Switch set up

cleanser processing plants the world over. In 1917, he started to enhance
nourishments, securing fish, frozen yogurt and canned food sources
organizations. In the Thirties, Unilever improved innovation with the growing
business. The business developed and new goals were dispatched in Latin
America. The innovative soul of the originators and their mindful way to deal

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with their workers and their networks stay at the core of Unilever’s business
even today. Unilever was framed in 1930 when the Dutch margarine
organization, “Margarine Unie” converged with British cleanser creator Lever
Brothers. Both organizations were going after similar crude materials, both
were engaged with huge scope promoting family items and both utilized
comparable conveyance channels. Between them, they had activities in more
than 40 nations. Margarine Unie developed through consolidations with other
margarine organizations in the 1920s(Unilever, 2016). In a set of experiences
that currently cross three centuries, Unilever’s prosperity has been impacted
by the significant functions of the day – financial expansion, misery, universal
wars, changing buyer ways of life and advances in innovation. What’s more,
all through they’ve made items that assist individuals with getting more out of
life – cutting the time spent on family tasks, improving nourishment,
empowering individuals to appreciate food and deal with their homes, their
garments and themselves. Towards the start of the 21st century, the Way to
Growth procedure zeroed in on globally popular brands. Like never before,
how brands are helping individuals ‘feel better, look great and get more out of
life’ – a notion near Lord Leverhulme’s heart over a hundred years
ago(Parvin, 2017). In March 2015, Unilever affirmed it had agreed to procure
REN Skincare, a British specialty skincare brand. This was continued in May
2015 by the procurement of Kate Somerville Skincare LLC. In October 2015,
Unilever consented to get the Italian premium frozen yogurt producer GROM
for an undisclosed sum. On 16 August 2016, Unilever obtained Blue air, a
provider of versatile indoor air filtration advances. In September 2016,
Unilever obtained Seventh Generation Inc. for $700 million. On 16 December
2016, Unilever procured Living Proof Inc. a hair care items business. In
March 2018, the organization reported that its base camp will be moved
totally to Rotterdam, finishing its double Anglo Dutch structure and UK
enlistment site. Indeed awarded Unilever as the UK’s ninth best private area
boss dependent on a huge number of representative evaluations and
surveys.

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EXTERNAL FACTORS INFLUENCING THE GROWTH OF
THE INDUSTRY AND CONSUMER BEHAVIOUR

Economic Environment:
Prior to COVID-19's breakout, the macroeconomic situation had been difficult, with
decreased GDP growth rates, a liquidity shortage, and a high unemployment rate.
This is reflected in declining consumer mood and slow demand. FMCG markets
have slowed from their 2018 highs, with rural markets experiencing a faster pace of
consumption slowdown than urban markets. Overall, market dynamics were mixed
across divisions, with discretionary categories such as Beauty & Personal Care
bearing the brunt of the slowdown, while Home Care and Foods and Refreshment
were relatively better protected due to their essential nature. The decrease in
corporation taxes

Digital and Technological Revolution:

Technology continues to change the fabric of life and business. Enhanced Artificial
Intelligence (AI), robotics and the Internet of Things (IoT) are reshaping how people
live, work and Interact with the world and with brands. Intelligent technologies are
optimising manufacturing and agriculture, connecting businesses inside and out, and
changing how people shop. Digital channels bring opportunities for more precision
marketing, deeper engagement and stronger connections between brands and
consumers all over the world. Yet, with access to richer data and more intelligent
analytics come risks and concerns around data security and privacy. Therefore,
businesses need to collect and use data in responsible ways.

Social Developments:

Societies are becoming more diverse and fragmented. For example, growing splits
between generations, rising affluence in the middle-income tier, growing young and
working population and changing family structures. As people increasingly interact
with each other and with businesses online, consumers are making more decisions
based on their values. Digitally connected shoppers are over-indexed on
consumption across all categories and especially in niche categories. They are also
using both online and offline channels to find better, more personalised products and

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services more easily and quickly. In this landscape, brands have to be more visible,
convenient and part of the conversation – taking a stand and action on the issues
people care about. The fragmentation of consumer expectations and retail channels
creates both challenges and opportunities for companies like HUL.

Environmental Backdrop:

Extreme changes in weather conditions along with water crisis and environmental
damage due to plastics are impacting consumer sentiments, livelihoods and safety.
Both younger and older generations are calling for businesses and politicians to do
more. People are becoming more conscious of the impact of their actions on the
environment. Consumers are increasingly making sustainable choices. We are
seeing growing movements for change around the world, as well as a real desire for
businesses and brands to limit their use of plastic and take bold systematic actions
to protect our planet. The cost of inaction far outweighs the cost of action.

SWOT ANALYSIS OF HINDUSTAN UNILEVER

STRENGTHS:
 Brand Visibility: From soap to mineral water, HUL is shaping the life of 1.3
billion people daily. being in consumer goods market with its 20 consumer
categories such as soap, tea, detergents, shampoo etc. & each having large
assortments, helped hul in occupying the large shelf space of grocery
/departmental stores which itself explains the acceptance demand of their
products in the market
 Innovative FMCG Company: Hindustan Unilever Research centre
(HURC),Mumbai & Unilever Research India, Bangalore ,both research
facilities were bought together in a single site in Bangalore in 2006.Employees
in this facility continuously  working & developing innovations in products &
manufacturing processes which is helping the HUL to set it as front-runner in
the consumer goods market.
 High brand awareness: HUL generated positive word of mouth over the years
by signing famous celebrities for the ads of their brands, which allowed them

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 to socially embrace their brands that were intelligently tailored and intended
for various income classes.
 Product line: It includes product categories with wide range of product
categories, including oral care , personal care, household surface, fabric care,
and pet feed, etc.
 Financial position: HUL holds a strong financial position. HUL has over 80
years of experience in the FMCG industry & sponsored by Unilever, which
holds a 67 percent majority stake in HUL.
 Market share: HUL has continued to maintain its market share in various
product segments by high market penetration.

WEAKNESSES:

 Declining market share: Rivals concentrating on a single product & eating up

HUL‘s share, eating up HUL ‘s wheel detergent market share, such as Ghadi
& Nirma detergent.
 Large range of brands in various categories of products: Often having a big
portfolio of brands will lead to mistaken positioning. Price placement in some
segments makes for low price rivalry, such as Kwality’s market share gained
by Amul.
 No Ayurvedic Products is marketed by Hindustan Unilever Limited.

OPPORTUNITIES:

 Market expansion: Through entering more rural markets through the Shakti
initiative and by transforming from an unorganized sector to an organised one,
the consumer goods market would further grow.
 Consumer goods use price awareness: Through ads / word of mouth / doctor
recommendation, people becoming more conscious and aware of the use.
This may result in a rise in the usage of products.
 Growing income levels: Because of a stable political situation, increased
literacy rate and regulated inflation, people’s discretionary income rises,
resulting in demand increases and their lifestyle changes.
 Ayurvedic Products: Can Start Manufacturing or Marketing Ayurvedic
Products under the brand name of HUL.

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THREATS:

 Market competition: With the rising number of local and national competitors,
it is becoming increasingly difficult for businesses to separate themselves
from others. There is also a concern that counterfeit goods will kill the
market’s brand name.
 Price of raw material: The rise in the price of raw material will lead to a further
increase in the price of commodities.
 Buyer control: Consumer goods companies are increasing at a rapid pace.
They are offering various offers and discounts to the consumers. Thus it is
very difficult for customers to stick to a single brand and hence results in
brand switching. Customers have the option to choose a brand depending on
many factors, such as availability, the suggestion of comparison group, choice
& price.
 Changing Norms and Regulations by the Government can also directly affect
company policies and practices.

4P’S OF THE COMPANY

PRODUCTS:

The company is the leader in consumer goods industry with many brands under its
umbrella. Its brand and product porfolio consists of-

Food Brands:

 Magnum (ice cream)

 Modern bread
 Kwality Walls (frozen dessert)
 Knorr soups
 Lipton tea
 Kissan jams, sauce, juices etc.
 Brooke Bond tea
 Bru coffee
 Annapurna atta and salt

Homecare Brands:

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  Magic – (water saver)
 Vim dishwash
 Surf Excel washing powder
 Sunlight washing powder
 Rin detergent
 Domestos disinfectant
 Comfort softeners for fabrics
 Wheel detergent

Brands related to Personal Care:

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

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  Axe soap, deodorant and after-shaving lotion
 Aviance
 Water purifier
 Pure it water purifier

Recently, Hindustan Unilever has introduced some new products in the

consumer market like Easywash from Surf Excel, Eyeconic range from Lakme, Anti-
Germ bar from Vim and Hair fall rescue treatment from Dove.

PLACE:

The company deals in various brands and has many products under its belt. To
handle all this products and brands successfully it has a vast distribution network
that includes at least two million outlets directly and 7.7 million retail shops in every
part of the country. The company also has a direct selling network called Hindustan
Unilever network (HUNL) and under this network, Ayush Therapy markets health
products, Aviance markets beauty products, Lever Home markets home
products, D.I.Y. markets male grooming products.  In order to retain its market hold
the company has pursued an innovative mechanism for distributing its products. In
its zeal to reach the innumerable potential consumers in urban regions and in rural
areas, where there is little scope for reaching and establishing a network, the
company has simply gone forward with no-holds barred policy and set up various
networks.

The company realizes that it has an advantage over its competitors and so has
adopted various methods to reach the customers through independent wholesale
and retail outlets with a minimum of two thousand and nine hundred stockists. Local
warehouses are set up at convenient places from where the C & F agents dispatch
the items to the retailers on the stockist’s orders.

In order to reach the rural market, Hindustan Unilever has a four-tier system of
distribution in place. The company under the Direct Coverage Scheme has a
common stockist that provides for every outlet under its zone.  Under the Indirect
Coverage Scheme, the company targets those retailers in villages that are near
urban markets.

PRICE:
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HUL believes in products that are consumer friendly as this generates huge amount
of sales. For this purpose, they have kept a simple pricing policy of low cost products
so that the products could reach a wider market. They have not compromised with
the quality of the product but have simply cut down on costing because of its wide
and far-reaching distribution policy. For some of its products Hindustan Unilever has
maintained a competitive pricing policy. As soon as its competitors increases or
decreases the prices of the products so does Hindustan Unilever.

It is to maintain the balance of the market in the name of various discounts or

schemes like two hundred gm. of a product free with one kg of that product. This
automatically reduces the prices and as the consumers are eager to buy at
discounted rates, it does generate excess sales volume thus resulting in extra
revenues. For its premium quality of products it has kept a premium pricing policy as
it caters to a different section of the society, who are happy to buy branded and
premium products.

PROMOTION:

HUL is a very large company with lots of brands and products so its promotional
policies are varied and extensive. It has taken the help of advertisements to create
consciousness about its products. Sharing product knowledge through the print
media like periodicals and various newspapers is also a good promotional strategy.

Sometimes coupons are attached with local newspapers to advertise and promote
the products. Hindustan Unilever has utilized the electronic media for
its promotions as the ads are on television at regular intervals. It has also posted
detailed information about its products along with advertisements on the websites to
maintain consumer awareness. HUL has maintained attractive product appearances
with detailed and complete information about the product on its packaging in at least
three languages.

Discounts are provided along with various schemes to attract the customers during
off seasons and during special occasions.  Sales push is also possible through
various contests, free samples, and lowered prices of introductory products and
endorsement of products by celebrities. Sakshi Talwar is associated with Vim, Yami
Gautam in Kwality Walls, Actor Kareena Kapoor is associated with Lakme, Actor

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Kajol is associated with Knorr soups, and Varun Dhawan in Pond’s men’s range and
Anushka Sharma is associated with Bru. In order to arouse the interest of the
consumers various staffs’ are hired who provide a live product demonstration
through the stalls at particular public places.

COVID-19 EFFECT ON THE COMPANY

The beginning of 2020 has witnessed the global spread of COVID-19, i.e.
coronavirus. Around the world, these coronavirus lockdowns have driven
professional and social life out of the physical world and into the virtual realm. The
economic fallouts of this is still difficult to assess as the situation is still evolving.

Hindustan Unilever (HUL), the country’s largest consumer goods company, on

Thursday reported a 7 per cent decline in volumes for the quarter ended March 31,
2020 (Q4FY20), faring even worse than the demonetisation quarter (October-
December 2016), when the fall was 4 per cent.

The supply disruption caused by the lockdown at the far end of the quarter has
clearly affected performance. After the note-ban period, HUL had improved its
volume growth trajectory, taking it to levels of about 12 per cent in April-June 2018
before stabilising at 5 per cent in the last three quarters of FY20.

Profit before tax fell 10.6 per cent to Rs 1,992 crore for the period, while net profit
declined 1.2 per cent year-on-year (YoY) to Rs 1,519 crore in Q4, as against a
consensus estimate of Rs 1,821 crore. Earnings before interest, tax, depreciation
and amortisation (EBITDA) margin fell to 22.9 per cent from 23.3 per cent in the
same quarter last year. Analysts expected a margin of 25.5 per cent for the period.

The company had improved manufacturing capacity to about 70 75 per cent now and
was looking at enhancing its digital footprint even as the company continued to
engage with offline trade to improve last-mile distribution. Mehta also maintained a
positive outlook for the FMCG sector, saying the scenario would improve in the
medium to long term.

VISION
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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 statement puts
emphasis on sustainability, especially among consumers. The following components
are notable in Unilever’s vision statement:

1. Commonplace sustainable living

2. Best long-term way
3. Business growth

Commonplace sustainable living is a core component in Unilever’s corporate vision

statement. This component shows the company’s efforts in changing its products to
suit current market conditions. For example, through sustainable design for home
care and personal care products, Unilever helps consumers reach their goals to
integrate sustainability in their lives. The corporate vision also states that
commonplace sustainability is the best long-term way for the business. Unilever
understands the importance of sustainability and other market trends shaping the
industry. Moreover, the vision statement reflects the company’s view of sustainability
as a way to maintain business growth. This vision statement aligns with Unilever’s
corporate social responsibility strategy to address business stakeholders in the
consumer goods industry.

MISSION
Unilever’s corporate mission is “to add vitality to life. We meet everyday needs for
nutrition, hygiene and personal care with brands that help people feel good, look
good and get more out of life.” This mission statement underscores how the
company satisfies customers in various aspects of their lives. The following are the
significant components in Unilever’s mission statement:

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

Adding vitality to life is a general indicator of business strategy in Unilever’s

corporate mission statement. Such vitality is the value that consumers can expect
from the company’s products. The corporate mission also specifies the aspects of
life where such vitality is added. For example, Unilever’s food products address

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consumers’ vitality needs in terms of nutrition. Furthermore, through these products,
the company attracts customers who want to feel good, look good, and get more out
of life. The mission statement’s specification of the types of products provides a
foundation for the product mix in Unilever’s marketing mix.

OPINION ON VISION AND MISSION STATEMENTS

According to the study above, Unilever's vision statement reflects the intended state
of becoming a leader in providing sustainable living to customers via consumer
goods. The statement, on the other hand, makes no mention of the company's ideal
state as a corporate entity. A strong corporate vision statement includes specifics
about the organization's anticipated future condition. For example, to lead
organisational development, it is vital to define the company's future market position.
As a result, one suggestion for improving Unilever's vision statement is to include
more information on market position or a leadership role in the consumer products
industry.

Unilever's mission statement contains specific details on what the company does
and must do. The company, for example, gives vigour to life by providing items that
fulfil consumers' nutritional, hygienic, and personal care demands. In this respect,
the company mission statement meets the requirements for specificity in general
strategic approaches. Unilever's mission statement, on the other hand, may be
improved by include more information on how the company strategically fulfils its
goals of adding vibrancy to consumers' lives.

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