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Project Report-I

On
“Marketing Strategy of HUL
(Hindustan Unilever Ltd.)”

Submitted in Partial Fulfillment of the requirement for the


Award of the Degree of
Bachelor in Business Administration (General)

Submitted To: Submitted By:


Dr. Anamika Rana Utkarsh Trivedi
(Associate Professor) BBA(G), II A.
Roll No. 04521201722

BATCH 2022-2025

DEPARTMENT OF BUSINESS ADMINISTRATION

Maharaja Surajmal Institute


Recognized by UGC u/s 2(f), NAAC Accredited ‘A’ Grade
Affiliated to Guru Gobind Singh Indraprastha
University, Delhi
C-4, Janakpuri, New Delhi-110058

1
Certificate

I, Mr. Utkarsh Trivedi, Roll No. 04521201722 certify that the Minor Project Report
(Paper Code: BBA 114) entitled “Marketing Strategy of HUL (Hindustan Unilever
Ltd.)” is done by me and it is an authentic work carried out by me. The matter
embodied in this has not been submitted earlier for the award of any degree or
diploma to the best of my knowledge and belief.

Signature of the Student

This is to certify that Project Report entitled “Marketing Strategy of HUL (Hindustan
Unilever Ltd.)” which is submitted by Priyanshu in partial fulfillment of the requirement
for the award of degree Bachelor in Business Administration to Maharaja Surajmal Institute
Affiliated to Guru Gobind Singh Indraprasth University, C-4, Janakpuri, New Delhi-110058 is a
record of the candidate own work carried out by him under my supervision. The matter
embodied in this report is original and has not been submitted for the award of any other
degree.

Signature of the
Guide

Designation:

2
Acknowledgment

It is not possible to prepare a project report without the assistance & Encouragement of
other people. This one is certainly no exception. On The very outset of this report, I
would like to extend my sincere & Heartfelt obligation towards all the personages who
have helped me in This project. Without their active guidance, help, cooperation &
encouragement, I would not have made headway in the project.

I gratefully acknowledge and am sincerely thankful to my guide of the Project, for


guiding me with attention and care. She has provided me with valuable insights during
the entire project work and her co- Operation at every step. In addition to this, she has
taken pain to go Through the project and make necessary corrections as and when
needed. I shall remain grateful to Mrs Supriya Chaudhary for giving me
the opportunity to conduct the study. I also express my deep gratitude to all who have
contributed for the successful completion of this Project.

UTKARSH TRIVEDI

3
TABLE OF CONTENTS

S.NO. TOPIC Page Teacher’s


No. Sign
1 CHAPTER 1: INTRODUCTION 6-18
1.1 Objectives of the study
1.2 What is Marketing Strategy
1.3 Importance of the study
1.4 Research Methodology
1.5 Scope of the Study
A. Strength
B. Weakness
C. Opportunities
D. Threats
1.6 Limitations
2 CHAPTER 2:REVIEW OF LITERATURE 19-20

3 CHAPTER 3: PROFILE OF THE COMPANY 21-34


3.1 COMPANY PROFILE
3.2 HISTORY
3.3 BOARD OF DIRECTORS
3.4 BRAND PORTFOLIO OF HUL
3.5 MERGERS AND ACQUSITION
3.6 AWARDS AND FELICITATIONS
3.7 PROJECTS
4 CHAPTER 4: CONCEPTUAL FRAMEWORK 35-44
4.1 WHAT IS MARKETING STRATEGY
4.2 MARKETING MIX
4.3 VARIOUS MEANS USED BY HUL TO
PROMOTE ITS PRODUCTS

4
5 CHAPTER 5: DATA ANALYSIS AND 45-52
INTERPRETATION
5.1 PESTLE ANALYSIS
5.2 STP ANALYSIS OF THE COMPANY
6 CHAPTER 6: CONCLUSION AND 53-55
RECOMMENDATIONS
7 BIBLIOGRAPHY 56

5
CHAPTER 1

INTRODUCTION

6
CHAPTER 1: INTRODUCTION

 A massive Fast-Moving Consumer Goods (FMCG) company having over 44+ brands
across 20 categories and with over 85 years of heritage. The company’s foremost motive
is to bring sustainable development. It is regarded as India’s largest exporter that has
become an imperishable company that reduces plastic and promotes sustainable projects

 HUL is an Indian public limited company controlled by Unilever, which owns 67 per
cent of the business’s shares. The company was based in 1932 and is headquartered in
Mumbai, India.

 Beyond a large portfolio of products, it also aspires to pioneer innovative business


models that promote growth while also benefiting society and the environment.

 The company needs to create a triumphant mix of the right product, sold at the right
price, using the most creative promotion in the correct place. To focus on multiple areas
of the marketing plan, the company needs to set the target market accurately.
 The fast-moving consumer goods (FMCG) industry or consumer packaged goods (CPG)
industry is mainly responsible for producing, distributing, and marketing fast-moving
consumer goods. The FMCG industry is the fourth largest sector in the Indian economy.
Household and personal care products accounts for 50% of the sales in the industry,
healthcare accounts for 31-32% and food and beverage accounts for remaining 18-19%.

7
 In the last 10 years, the revenue in FMCG industry in India has been growing at the rate
of 21.4%. There was a drastic change in revenues in FMCG sector growing from US$
31.6 billion to US$ 52.8 from 2011 to 2017-2018 respectively. FMCG industry in India is
expected to grow at the rate of 27.9% CAGR (Compounded Annual Growth Rate) to sum
to US$103.7 billion by 2020. Additionally, the rural FMCG market is projected to grow
at a CAGR of 14.6% to reach US$100 billion by 2020 and US$220 billion by 2025.

 Emergence of many FMCG brands in India like ITC, HUL etc. leads to the rapid growth
of this industry in the country. This project is undertaken to evaluate the business and
marketing
 strategies used by the HUL that make its one of the country’s finest FMCG brand and
able to maintain its edge over others and remain at peak for many decades. Research and
insight data here used is secondary data which is evaluated on the basis of media, reports
published in newspapers to carefully have a glance at its operations and sagacious mind
who are responsible for its success.

8
1.1 Objectives of the Study

 The project gives an insight of the conglomerate company HUL (HINDUSTAN


UNILEVER LIMITED).

 THE ASSOCIATED STUDY AND PROJECT IS UNDERTAKEN WITH VIEW


TO HAVE A INSIGHT KNOWLEDGE OF MARKETING STRATEGY OF
HUL (Hindustan Unilever Limited).

 It helps us to know about the marketing aspects and various marketing or


strategical used by the ltd. to market its product and its market share of potential
customers.

 It also bring light on how a big FMCG company manages its area of operation in
field of marketing when it have more than 44 brands in 20 different category.

9
1.2 WHAT IS MARKETING
STARTEGY

• Marketing strategy is a long-term, forward-looking approach and an overall game


plan of any organization or any business with the fundamental goal of achieving a
sustainable competitive advantage by understanding the needs and want of
customers.
• Scholars like Philip Kotler continue to debate the precise meaning of marketing
strategy. Consequently, the literature offers many different definitions. On close
examination, however, these definitions appear to centre around the notion that
strategy refers to a broad statement of what is to be achieved.

• Strategic planning involves an analysis of the company's strategic initial situation


prior to the formulation, evaluation and selection of market-oriented competitive
position that contributes to the company's goals and marketing objectives.

• Marketing strategy involves mapping out the company's direction for the
forthcoming planning period, whether that be three, five or ten years. It involves
undertaking a 360° review of the firm and its operating environment with a view
to identifying new business opportunities that the firm could potentially leverage
for competitive advantage. Strategic planning may also reveal market threats that
the firm may need to consider for long-term sustainability. Strategic planning
makes no assumptions about the firm continuing to offer the same products to the
same customers into the future. Instead, it is concerned with identifying the
business opportunities that are likely to be successful and evaluates the firm's
capacity to leverage such opportunities. It seeks to identify the strategic gap; that
is the difference between where a firm is currently situated (the strategic reality or
inadvertent strategy) and where it should be situated for sustainable, long-term
growth (the strategic intent or deliberate strategy).

10
1.3 IMPORTANCE

• 1) Helps to gain a competitive advantage:


The first and foremost on the list of the Importance of Marketing Strategy is that it
helps the firm gain a competitive advantage in the market amidst the tough
competition with an edge over the existing players and the new entrants who are
trying to establish their brand presence in the market. A well-defined marketing
strategy harps on the unique selling propositions of the brand along with the features
and benefits of the products and services offered by the firm in a creative, strategic,
and planned manner highlighting that how the brand and its offerings are better than
the ones of the competitor. The consistent and continuous messaging and
communication strategy helps the brand to curate a distinctive identity in the volatile
and competitive market.

• 2) Brand Recognition
Along with the promotion of the goods and services offered by the firm,
having a powerful marketing strategy helps the brand and the overall
company to attain a remarkable feat in the target market and industry as a
whole with the customers and industry peers looking up to the brand and its
offerings in a niche and positive manner. The main fundamental of marketing
strategy is to highlight and promote the attributes, legacy, and USP’s of the
brand to start with followed by its offerings.

• 3) Attract a new set of customers


The management and the marketing department of the firm need to understand the
Importance of Marketing Strategy if they want to attract the new set of customers
from the same operational market plus from the untapped markets as well. The
promotional tools and techniques that are an integral part of the marketing strategy
are planned and selected considering the taste, lifestyle, income levels, and other such
parameters of the targeted customers that works as a pull factor for them and helps
the sales department to convert the fence sitters to quality prospects and to the
customers of the brand.

11
• 4) Plan the marketing budgets
Every department of the company right from the marketing, sales, HR, and others are
given annual budgets by the management that needs to be spent in the benefit of the
company. Having a planned and aligned marketing strategy makes sure that the
allocated budgets don’t go haywire by spending on the promotional activities that have
low return on the investments plus there is an optimal use and allocation of the
marketing budgets on the marketing tools and promotional tactics that helps attaining
not only marketing goals but the overall business goals and objectives too.

• 5) Creative Edge
Next in the line of the Importance of Marketing Strategy is that the brand and all overall
marketing and promotional activities get an edge of creativity as the brand cynosures
and the marketing departments liaise with the design agencies, media planners, PR
agencies, and other such vendors that dedicatedly understand the nature of the brand
and its offerings and come up with the unique, out-of-the-box, and exclusive ideas that
give the brand a creative edge and helps curating a distinguished personality in the
market.

12
1.4 Research Methodology

Research methodology is the path through which researchers need to conduct their
research. It shows the path through which these researchers formulate their problem and
objective and present their result from the data obtained during the study period.

It have three aspects:


A. Type Of Data
B. Type Of Research
C. Tools and Techniques

 Types of research methods can be broadly divided into two quantitative and
qualitative categories.

1. Quantitative research “describes, infers, and resolves problems using numbers.


Emphasis is placed on the collection of numerical data, the summary of those data
and the drawing of inferences from the data”.

2. Qualitative research, on the other hand, is based on words, feelings, emotions,


sounds and other non- numerical and unquantifiable elements. It has been noted
that “information is considered qualitative in nature if it cannot be analysed by
means of mathematical techniques. This characteristic may also mean that an
incident does not take place often enough to allow reliable data to be collected”.

A. TYPE OF DATA (SECONDARY DATA)

The secondary data refers to data that was collected by someone other than the user. This
data source gives insights of the research area of the current state-of-the-art method. It
also makes some sort of research gap that needs to be filled by the researcher. This
secondary data sources could be internal and external data sources of information that
may cover a wide range of areas.

Secondary data can be obtained from different sources:


Information collected through censuses or government departments like housing, social
security, electoral statistics, tax records
Internet searches or libraries.

13
B.TYPE OF RESEARCH (EXPLORATORY RESEARCH)

Exploratory research is the process of investigating a problem that has not been studied or
thoroughly investigated in the past . Exploratory type of research is usually conducted to
have a better understanding of the existing problem.

C.TOOLS AND TECHNIQUES :


(SWOT-ANALYSIS)

14
1.5 Scope of The Study

A. STRENGTH

 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.

 Market leader in consumer goods:


According to Nielsen data 2 out of three Indian consumers use HUL products.
HUL used a selective targeting strategy to emerge as a market leader in the Indian
market.

 Innovative FMCG Company:


Hindustan Unilever Research center (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.

B. WEAKNESSES

 Decreasing Market share:


Competitors focusing on a particular product & eating up HUL’s share, like Ghadi
& Nirma detergent eating up HUL’s wheel detergent market share.

 Large number of brands in different product categories:


Sometimes having broad brand portfolio can lead to confused positioning. Price
positioning in some categories allows for low price competition like AMUL
captured Kwality’s market share.

15
C. OPPORTUNITIES

 Expanding market: By penetrating more in the rural markets through its project
Shakti AMMA and transition of unorganized business to organized one will lead
to further expansion of the consumer goods market.

 Awareness in usage rate of consumer goods: People getting more aware and
conscious about the usage may be through advertising /word of mouth /doctor
prescription, is resulting in increase in usage rate of the these products

16
D. THREATS

 Competition in the market:


With increasing number of local & national players it’s becoming very hard for
the companies to differentiate themselves from others. There is also threat from
counterfeit products destroying its brand image in the market.

 Price of commodities:
The increasing price of commodities will result in further increase in the price.
Further increase in price will result in decrease in sales, margins & brand
switching.

 Buyers power:
With highly diversified consumer goods market where there are lots of brands
claiming different sorts of benefits, it’s very difficult for consumers to stick to a
particular brand & hence results into brand switching where consumer got power
to select a brand based on several factor like availability, reference group
recommendation, preference & price.

17
1.6 Limitations of Study

“The findings of this study have to be seen in light of some limitations.”


Though this study answered some important questions. However,
there is a room for improvement .in an attempt to make the
project authentic a reliable every possible aspect of the topic was
kept in mind .never the less, despite of the fact constraints was at
play during the formulation of the project the main limitations
were
1. The data could be further enriched by adding more facts and figures
2. Due to use of various sources there can be variation in the data used.

18
CHAPTER-2

Review of Literature

19
Review of Literature

 Hindustan Unilever Limited is the Indian arm of the Anglo-Dutch company


Unilever. Both Unilever and HUL have established themselves well in the Fast
Moving Consumer Goods (FMCG) category. In India, the company offers many
households brands like, Dove, Lifebuoy, Lipton, Lux, Pepsodent, Ponds, Rexona,
Sun silk, Surf, Vaseline etc. Some of its efforts were also rewarded when four of
HUL brands found place in the Top 10 brands’ list for the year 2008 published in
The Economic Times.

 Unilever was a result of the merger between the Dutch margarine company,
Margarine Unie, and the British soap-maker, Lever Brothers, way back in
1930.For 70 years, Unilever was the undisputed market leader but now faces
tough competition from Proctor & Gamble and Colgate-Palmolive.

 HUL is also known for its strong distribution network in India. In order to further
strengthen its distribution in the rural areas and to empower the local women,
HUL launched a Project Shakti in 2000 in a district in Andhra Pradesh. The idea
behind this project was to create women entrepreneurs and provide them with
micro-credit and training in enterprise management, which would enable them to
create self-help groups and become direct-to-home distributors of HUL products.

 Today Project Shakti is present across 80,000 villages in 15 states and is helping
many underprivileged women earn their livelihood. As the per-capita income of
India is increasing along with the Indian population. So, the future for FMCG
Companies is bright. To analysis the past performance& the future demand of
HUL, FMCG products we have considered following points: We have a listed the
different FMCG product lines of HUL.

 We have done competitor’s analysis in which the market share of top FMCG
companies are analyzed & the market share of HUL’S different categories
product are analyzed with comparison to its competitors.

 The future opportunities for FMCG products are taken into consideration by
analyzing the increased per capita income & increased disposable income to
forecast the future demand of HUL.

20
CHAPTER-3

PROFILE OF THE COMPANY

21
3.1 COMPANY PROFILE

• Hindustan Unilever Limited (HUL) is the Indian subsidiary of Unilever PLC . It


is headquartered in Mumbai, India. Its products include foods, beverages,
cleaning agents, personal care products, water purifiers and consumer goods.
HUL was established in 1933 as Lever Brothers and following merger of
constituent groups in 1956 was renamed as Hindustan Lever Limited. The
company was renamed in June 2007 as "Hindustan Unilever Limited". As of 2022
Hindustan Unilever portfolio had 44 product brands in 20 categories and employs
18,000 employees with sales of ₹34,619 crores in 2017–18.

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3.2 History

In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight
soap bars, embossed with the words "Made in England by Lever Brothers". With it,
began an era of marketing branded Fast Moving Consumer Goods (FMCG).
Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux and
Vim. Vanaspati was launched in 1918 and the famous Dalda brand came to the
market in 1937.
In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing
Company, followed by Lever Brothers India Limited (1933) and United Traders Limited
(1935). These three companies merged to form HUL in November 1956; HUL offered
10% of its equity to the Indian public, being the first among the foreign subsidiaries to do
so. Unilever now holds 67.25% equity in the company. The rest of the shareholding is
distributed among about three lakh individual shareholders and financial institutions.

The timeline of HUL is explained by:

• The erstwhile Brooke Bond's presence in India dates to 1900. By 1903, the
company had launched Red Label tea in the country. In 1912, Brooke Bond & Co.
India Limited was formed. Brooke Bond joined the Unilever fold in 1984 through
an international acquisition. The erstwhile Lipton's links with India were forged
in 1898. Unilever acquired Lipton in 1972, and in 1977 Lipton Tea (India)
Limited was incorporated.
• Pond's (India) Limited had been present in India since 1947. It joined the Unilever
fold through an international acquisition of Chesbrough Pond's USA in 1986.
• Since the very early years, HUL has vigorously responded to the
stimulus of economic growth. The growth process has been
accompanied by judicious diversification, always in line with
Indian opinions and aspirations.
• The liberalization of the Indian economy, started in 1991, clearly marked an
inflection in HUL's and the Group's growth curve. Removal of the regulatory
framework allowed the company to explore every single product and opportunity
segment, without any constraints on production capacity.

23
24
3.3 KEY PEOPLE OR BOARD OF HUL:

 MR. SANJIV MEHTA (CHAIRMAN AND MANAGING DIRECTOR)


 MR. SRINIVAS PHATAK EXECUTIVE OF IT AND FINANCE
(CHIEF FINANCIAL OFFICER)
 MR. WILLEM UIJEN EXECUTIVE DIRECTOR, SUPPLY CHAIN
 MR. ADITYA NARAYAN, INDEPENDENT DIRECTOR
 DR. SANJIV MISRA, INDEPENDENT DIRECTOR
 MR. DEV BAJPAI EXECUTIVE DIRECTOR,
COMPANY SECRETARY

25
3.4 BRANDS PORTFOLIO OF HUL (HINDUSTAN UNILEVER
LIMITED)

THE HUL ONE OF THE BIGGEST FMCG COMPANY HOLDS MORE THAN 44 BRANDS IN
20 CATEGORY AND HAVE OVER 6.3 MILLION OUTLETS IN A COUNTRY.

1.FOOD AND REFRESHMENT :


Boost, Horlicks, Cornetto, Brooke bond, kissan, kwality wall’s.

2.HOME CARE :
Rin, Surf excel, Domex, Vim

26
3.BEAUTY & PERSONAL CARE:
Fair and lovely, Pears , Dove , Lakme , Aviance beauty solutions, Citra.

4.Life Essentials:
PURE IT

27
28
3.5 MERGERS AND ACQUISITIONS
 HUL completes merger of GSK Consumer with itselfThe merger values GSK
Consumer Healthcare at nearly Rs 32,000 crore and its shareholders will get 4.39
shares of HUL for each of their share.

 This deal gives HUL access to Horlicks, Boost and Maltova malted drinks
brands and OTC brands such as Sensodyne, Eno and Crocin.

29
• HUL formed a 50:50 joint venture with the US-based Kimberly Clark
Corporation in 1994, Kimberly-Clark Lever Ltd, which markets Huggies
Diapers and Kotex Sanitary Pads. HUL has also set up a subsidiary in Nepal,
Unilever Nepal Limited (UNL), and its factory represents the largest
manufacturing investment in the Himalayan kingdom. The UNL factory
manufactures HUL's products like Soaps, Detergents and Personal Products
both for the domestic market and exports to India.

• The 1990s also witnessed a string of crucial mergers, acquisitions and


alliances on the Foods and Beverages front. In 1992, the erstwhile Brooke
Bond acquired Kothari General Foods, with significant interests in Instant
Coffee. In 1993, it acquired the Kissan business from the UB Group and
the Dollops Ice-cream business from Cadbury India.

• As a measure of backward integration, Tea Estates and Doom Dooma,


two plantation companies of Unilever, were merged with Brooke Bond.
Then in 1994, Brooke Bond India and Lipton India merged to form
Brooke Bond Lipton India Limited (BBLIL), enabling greater focus
and ensuring synergy in the traditional Beverages business. 1994
witnessed BBLIL launching the Wall's range of Frozen Desserts. By the
end of the year, the company entered into a strategic alliance with the
Kwality Ice cream Group families and in 1995 the Milkfood 100%
Icecream marketing and distribution rights too were acquired.

30
3.6 Awards & Felicitations

• Hindustan Unilever Limited (HUL) has emerged as the No. 1 Employer of


Choice across all sectors for the 2014 graduating batch of B–School
students
• Awarded top Indian company in the 'FMCG' sector for the third consecutive year at
Dun & Bradstreet–
Rolta Corporate Awards, 2009
• HUL ranked fourth in the ‘Top Companies for Leaders, 2009' (Asia
Pacific region) and 10th place in the global rankings in a survey carried
out by Hewitt Associates
• Awarded Customer and Brand Loyalty Award by Business India & Business
Standard in 2009
• Awarded for Best Corporate Social Responsibility Practice at the Social &
Corporate Governance Awards
08–09 by BSE, Nasscom Foundation and Times Foundation
• Awarded in the Category 'FMCG Manufacturing Supply Chain Excellence' at
the Third Express, Logistics & Supply Chain Awards by APL Logistics,
Indiatimes , Mindscape, Business India Group in 2009
• The company’s Orai unit received the Gold Excellence award and the
Khalilabad unit received the Silver Excellence award in the environment
category by Greentech Foundation in 2009
• HUL's Goa factory won a Gold Trophy at the Greentech Awards in 2009 the
manufacturing sector category
for their outstanding work in Safety Management
• Project Shakti won the Silver Trophy at the EMPI–Indian Express Indian Innovation
Awards, 2009
• Kwality Wall's Swirl's awarded 'The Franchisor of the year' for
the Ice–cream parlour category by Franchise India in 2009.

31
32
3.7 NOTABLE PROJECTS

33
MOOO
XAS
In the Mohi Khurd Village in Rajpura, Punjab, India, project ‘Prabhat,’ a community
development initiative of Hindustan Unilever Limited (HUL) has recently
launched ‘Project Mooo’ in partnership with UDAY.

‘Mooo’ an app-based dairy farming solution aims to improve milk productivity in cattle.
The ‘Mooo App’ harnesses the power of big data to create an immediate impact on the
productivity and income of dairy farmers while addressing the dairy industry challenges
such as herd productivity, lack of awareness and access to information and milk
tractability in the supply chain.

To improve income, local farmers and youth in the villages near HUL’s Rajpura factory
are being trained on dairy farming practices and are provided with market linkages.

34
CHAPTER 4

CONCEPTUAL FRAMEWORK

35
• 4.1 WHAT IS MARKETING STRATEGY?
Marketing strategy is a long-term, forward-looking approach and an overall game plan
of any organization or any business with the fundamental goal of achieving a
sustainable competitive advantage by understanding the needs and want of customers.
Scholars like Philip Kotler continue to debate the precise meaning of marketing
strategy. Consequently, the literature offers many different definitions. On close
examination, however, these definitions appear to centre around the notion that strategy
refers to a broad statement of what is to be achieved. Strategic planning involves an
analysis of the company's strategic initial situation prior to the formulation, evaluation
and selection of market-oriented competitive position that contributes to the company's
goals and marketing objectives.

• 4.2 MARKETING MIX


Marketing may refer to the process of value exchange that is facilitate by the 4 Ps. The
term 'marketing mix' is a foundation model for businesses, historically centered around
product, price, place, and promotion (also known as the "4 Ps"). The marketing mix has
been defined as the "set of marketing tools that the firm uses to pursue its marketing
objectives in the target market".Thus the marketing mix refers to four broad levels of
marketing decision: product, price, place, and promotion.
The Four P’s are categorised as:

1.Products in the Marketing mix of Hindustan Unilever ( HUL )


• Hindustan Unilever is an Indian public ltd company owned by another company
Unilever that holds 67% of its shares. Founded in the year 1932, the company
has its headquarters at Mumbai in India. Hindustan Unilever is one of the biggest
fast moving companies of consumer goods with at least two thirds of the
population using its products at one time or the other.

36
The company is the leader in consumer goods industry with many brands
under its umbrella. Its brand and product portfolio 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

37
 Homecare Brands
• Magic – (water saver)
• Vim dishwash
• Surf Excel washing powder
• Sunlight washing powder
• Rin detergent
• Domestos disinfectant
• Comfort softners for fabrics
• Cif
• Wheel detergent

38
2.Place in the Marketing mix of Hindustan Unilever ( HUL )
• Hindustan Unilever 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.

3.Price in the Marketing mix of Hindustan Unilever ( HUL )

• Hindustan Unilever 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.
Hindustan Unilever tries to offer various brands with variety of products at numerous
price ranges. This is so because the consumer will buy any one of the product
according to his/her financial capability. The prices are placed so that they are
generally reasonable and at competitive rates. 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.

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A distribution channel is a chain of businesses or intermediaries
through which a good or service passes until it reaches the final buyer or
the end consumer. Distribution channels can include wholesalers,
retailers, distributors, and even the Internet.
Distribution channels are part of the downstream process, answering the question
"How do we get our product to the consumer?" This is in contrast to the
upstream process, also known as the supply chain, which answers the question
"Who are our suppliers?“

WE CAN CLASSIFY DISTRIBUTION CHANNEL IN TWO TYPES:


1. DIRECT
2. INDIRECT

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4.Promotions in the Marketing mix of Hindustan Unilever ( HUL )
Hindustan Unilever 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. Hindustan Unilever 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 Kajol is associated with Knorr soups, and
Varun Dhawan in Ponds men’s range and Anoushka Sharma is associated with Bru.

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4.3 VARIOUS MEANS USED BY HUL TO PROMOTE ITS
PRODUCTS:
1. BILLBOARDS
2. TELEVISION ADS
3. PERSONAL SELLING
4. SALES PROMOTIONS

1.BILLBOARDS:
A billboard (also called a hoarding in the UK and many other parts of the
world) is a large outdoor advertising structure (a billing board), typically
found in high-traffic areas such as alongside busy roads. Billboards present
large advertisements to passing pedestrians and drivers. Typically showing
witty slogans and distinctive visuals, billboards are highly visible in the top
designated market areas .

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2.ADVERTISEMENTS:
• Advertising is a marketing communication that employs an openly sponsored,
non- personal message to promote or sell a product, service or idea. Sponsors of
advertising are typically businesses wishing to promote their products or services.
Advertising is differentiated from public relations in that an advertiser pays for
and has control over the message. It differs from personal selling in that the
message is non-personal, i.e., not directed to a particular individual. Advertising
is communicated through various mass media, including traditional media such as
newspapers, magazines, television, radio, outdoor advertising or direct mail; and
new media such as search results, blogs, social media, websites or text messages.
The actual presentation of the message in a medium is referred to as an
advertisement, or "ad" or advert for short.

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3.USP(UNIQUE SELLING PROPOSITION)

A unique selling proposition (USP) refers to the unique benefit exhibited by a company,
service, product or brand that enables it to stand out from competitors. The unique selling
proposition must be a feature that highlights product benefits that are meaningful to
consumers. In order to determine an appropriate USP for any given brand, marketers
must undertake extensive research of the category as well as of consumers. It is important
to be able to locate a space in the market, ensure that the feature is something that is
unique, and also something that is valued by potential customers. Sellers also need to try
selling a brand to themselves; this is so they know they are passionate about a product
and confident it can succeed. The seller needs a key point to use when trying to sell their
product or service, and coming up with it prior to selling will benefit. Having a point of
difference to stand out is a major benefit in markets; customers will be drawn to a
business if it offers something no one else has. Whether differences are subtle or blatant,
they can be the driving force that ensures the end-consumer makes the desired decision in
choosing one product over the competition.

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CHAPTER – 5

DATA ANALYSIS AND INTERPRETATION

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5.1 PESTLE- ANALYSIS

• The Political Factors:


Political factors in the HUL (Hindustan Unilever Limited) PESTLE Analysis
can be explained as follows:
Merging of HUL with Tata Oil Mills Company and Lakme helped Hindustan Unilever
to venture into new areas like cosmetics and food oil with the help of regulations of
India eventually helping them to expand into product and services. Hindustan
Unilever, later on merged with Kimberly Clark Corporation helping them to enter
Huggies diapers and Kotex Sanitary pads. Being sensitive to everything in India,
Hindustan Unilever does not support any political party or government.

• Economic Factors:

Below are the economic factors in the PESTLE Analysis of HUL (Hindustan
Unilever Limited):
The whole world got hit with an economic crisis in 2009 but the Asian countries were
the ones which were least hit as their reliance was less based on interest investments.
When HUL was losing profits in most of the countries abroad it was still earning
profits in India. Since Hindustan Unilever has a constant price change because it sells
the products of everyday market, it is always under pressure. Oils and soaps which
mark the bottom liner are made from raw materials like oils and chemicals whole
prices keep changing every day. HUL also faces direct competition because of the
local producers, also by MNCs to an extent that maintaining loyalty and market share
hand in hand is almost impossible.

• Social Factors:
Following are the social factors impacting HUL (Hindustan Unilever Limited) PESTLE
Analysis:
Social programs have been a way through which Hindustan Unilever has expanded its
customer base. Hindustan Unilever accepts that an association's value is additionally
in the administration it renders to the community. Cleanliness, nourishment, upgrade
of livelihood, a decrease of ozone-depleting substances and water impression has
been HUL’s focus since the beginning. Training and recovery of underprivileged
youngsters, care for the dejected and HIV-positive, and country improvement have
also been HUL’s primer areas to focus on. Lifebuoy Swasthya Chetana is another
program that Hindustan Unilever runs. This program focuses on getting people rid of
diarrhea. HUL's Project Shakti is an activity through which it focuses on little towns.

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Through it, Hindustan Unilever is taking rural women and their needs into
consideration, helping them live a better and much more hygienic life. This program
also gives them cleanliness and wellness education through Shakti Vani.
• Project Shakti is an initiative to financially
empower rural women and create livelihood
opportunities for them. It provides a regular income
stream for the Shakti entrepreneurs and their
families.
• HUL has trained thousands of women in villages across India
to develop an entrepreneurial mindset and make them
financially independent. These women entrepreneurs (called
Shakti Ammas) have been trained on basic tenets of
distribution management and familiarisation with the
Company’s products. HUL has a team of rural sales promoters
(RSP’s) who coach and help Shakti Ammas in managing their
business. This includes help in business basics and
troubleshooting as well as coaching in softer skills of
negotiation and communication which enable them to run their
business effectively.
Impact
• Project Shakti now has over one lakh micro-
entrepreneurs across 18 states.

• Technological Factors:
The technological factors in the PESTLE Analysis of HUL (Hindustan Unilever
Limited) are mentioned below:
E-Commerce has been the new way for all companies, and so it has been the same
for HUL as well. Hindustan Unilever has been finding new ways to engage
customers and through its technological advancement, it has overcome this
problem of engagement by digitalization. HUL is utilizing the most recent IT
innovation; industry center around a mechanical exertion by utilizing innovation
foundations, for example, the web, intranet and other data trade frameworks
including phone and innovation equipment, for example, cell phones,
workstations, work areas, Bluetooth gadgets, printers and fax machines which
transmit and record data. Hindustan Unilever has started selling its products online
and this has only been possible through digitalization. Through its technology,
HUL has been able to analyze the big data of customers and their wants, what
product sells more and by how much, thus making a breakthrough. Technology
has also helped HUL understand customer relations and apply it in modern trade.
This is how technological factors and their rising usage has helped in its revenue
generation.

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• Legal factors:
Following are the legal factors in the HUL (Hindustan Unilever
Limited) PESTLE Analysis:
HUL ensures that it follows every local and national law in opts working and selling.
For example, in case of Gujarat, even after high rising prices of production,
Hindustan Unilever charged nominal in the times of drought and floods in the state.
HUL needs to comply with all the natural laws in the states pertaining these laws for
its proper working. The rest of the laws which are followed by HUL are mostly the
same as followed by any other MNC, it just needs to make sure that it doesn’t abuse
or violate any law.

• Environmental Factors:
In the HUL (Hindustan Unilever Limited) PESTLE Analysis, the environmental
elements affecting its business are as below:
Hindustan Unilever has been in news always for breaking natural laws and dumping
compounds which are harmful and have jeopardized lives of workers and residents
living around their factories. An episode that occurred at Kodaikanal industrial
facility, because of dumping and selling pieces of glass material containing Mercury,
HUL came into light and was blamed for the same. Hindustan Unilever had to close
the production line as well. This resulted in checking their production procedure and
eventually illegal scrapping of Mercury was found.

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5.2 STP ANALYSIS OF THE COMPANY

 SEGMENTATION
• HUL segmented its customers on the basis of urban and rural level population,
demographics of their target customers, on the basis of income level.
For example- Detergent- Surf Excel(for high income group) and Wheel (for low income
group)
This help HUL to perform its varied task and formulation of strategy by
taking care needs of every niche with utmost care.
• Branding helps the one homogeneous product to different cognizable product.
HUL is both known for its Premium and low budget friendly products, that

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make it more comprehensible in their operation but at last it manages their
both rural and urban customer base with full ease.

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 TARGETING
• Its customer base represents the masses of India – consumers in small towns,
rural and semi-urban India.
• HUL mostly target customer through their feedback and prevailing trends in
INDIAN fmcg market. As due to large operations in both Rural and Urban area,
it targets consumers on the basis of :
 INCOME GROUP(both rich and poor)

 DEMOGRAPHICS( have products for all type of people kids to adults)


 HYGIENE (have soap brands like Lifebuoy )
• Works with the UN and its health organization approved projects
to bring a qualitative attribute in life of the people.
• Due to large employee workforce and skilled able, HUL works with govt
projects also to build its goodwill like Shakti and chetna program.

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 Positioning
• A good brand positioning help guide marketing strategy by clarifying the
brands essence but goals it help the consumer achieve and how it does so in
a unique way.
• HUL position it self India one of the largest and trusted FMCG brand with
legacy of more than 100 Years and its service and product are available for
every households, every income group, for every geographical area.

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CHAPTER-6

CONCLUSION AND RECOMENDATION

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 6.1 Recommendation

• Today’s consumers are very smart, so business should be carried out in an ethical
ways. Even day by day various laws are being enforced for protecting consumers
rights. Hence company should be transparent enough to provide details about
various products and special campaigns should be launch to make consumers
aware about how to differentiate spurious products and the company should
legally resort to initiate action against those who are involved in it and strict legal
actions should be enforced.
• For the betterment and making rural consumer well aware, a separate
department at company level should be created which will take care of the
issues and problems of rural consumers. An attempt should be made to
measure the advertisement effectiveness in rural areas. There is no doubt that,
advertisement is meant for creating awareness but subsequently it should also
be ensured that AIDA model is adopted effectively by the rural consumers.
• Continuous Research and Development activities should be focused upon to
understand the changing pattern of test and preferences of the products by the
rural customers and according the products should be developed.

• WITH LOTS OF BRAND IN VARIED CATEGORIES GIVES IT AN ULTIMATE


ADVANTAGE TO ITS SUPERIOR AND BECAUSE OF IT LONG OPERATIONAL
HISTORY, IT POSSESS A LARGE MARKET STUDY OF THE REGION.

• TO MAKE ITS STRATEGIES EFFECTIVE IT USES MANY PRIMITIVE TOOLS LIKE


SAMPLING, FEEDBACK, AND DETAILED MARKET STUDY OF FMCG WITH
TAKING MINUTE DETAILS IN CONSIDERATION.

• HUL USES AI TECHNOLOGY TO STORE ITS DATA AND TO KEEP ITS AFTER
CUSTOMER SALES SUPPORT SERVICE INTACT.

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 6.2 CONCLUSION

 Unilever has pursued this marketing strategy since the buyers in developing business
sectors are profoundly centered around cost. It can give nearby contenders the edge,
except if an organization can discover an approach to pull in purchasers with deal costs
just as better items.

 Unilever accepts the fact that productive development ought to likewise be liable for
development. Unilever’s effective image advancement program is upheld with a
significant level of showcasing and publicizing exercises which includes most of the
media platforms. As there are numerous open doors in the unfamiliar business sectors,
yet the inclination of danger is the same as circumstances.

 The incredible research and development (R&D) wing, enhanced and separate product
offerings and market investigation are terrific significant components that cause an
organization to make the most of its latent capacity and great piece of the overall industry
in the unfamiliar market.

 To keep up a more fruitful brand an incentive there must be brilliant coordination and
incorporation between the brand chiefs in the showcasing division. 

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 BIBLIOGRAPHY

SECONDARY DATA AND RESEARCH HAS BEEN CONDUCTED BY


FOLLOWING USE OF RESOURCES:
• https://www.wikipedia.org/ FOR BASIC
• https://www.hul.co.in/ USED FOR CORE INFORMATION
• https://economictimes.indiatimes.com/?from=mdr FOR NEWSPAPER ARTICLES
AND STATISTICAL DATA
• https://www.ibef.org/ INSIGHT

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