Submitted By:

Guruvayur Maharana(M5-20)
Rahul Singhania(M5-26)
Soumya Ranjan Das(M5-37)
Sourav Dey(M5-38)
Vijay Shekhar Kondi(M5-44)
Vinod Patil(M5-58)
HINDUSTAN LEVER
LIMITED
Hindustan Unilever Limited
(HUL) is India's largest fast
moving consumer goods company.
In 1888 Kolkata witnessed an era
of marketing branded FMCG.
In 1931 Unilever set up its first
Indian subsidiary.
In November 1956 HLL formed.
In 1900 Brooke Bond entered
India.
In 1984 Brooke Bond joined the
Unilever fold.
In 1972, Unilever acquired Lipton.
In 1986, Ponds joined Unilever.
In 1991, it marked an
inflexion in HUL’s
 In 1993 TOMCO merged
with HUL
In 1996 Lakme limited
formed a 50:50 joint
venture.
In 1994 HUL formed 50:50
joint venture with the US
based Kimberly Clark
Corporation.
HUL has set up a subsidiary
in Nepal as UNL.
• In 1996 BBLIL merged with
HUL.
CHALLENGES FACED BY
HINDUSTAN LEVER
LIMITED
With these acquisitions
Hindustan Lever Limited
became a giant company in
FMCG sector. But is has
become as “UNMANAGEABLE
GROWTH” because of the
following challenges and these
are
as follows:-

 MARKETING CHALLENGES
 LOGISTICS CHALLENGES
 HR CHALLENGES
 FINANCE CHALLENGES
Marketing Challenges – The company penetrated such deep into
market where further penetration became almost Impossible.
Logistics Challenges – HLL had a centralized policy for the
distribution of products. Any marketing team from any part of the
country should summon the requirement from Mumbai
warehouse only.
HR Challenges – HLL had a very bad experience during the
placement week at IIM Ahmadabad in 1999 when they were
given last slot as because none of the top cream opted for HLL.
When enquired its was found that HLL has limited career
prospect .
Finance Challenges– The company was operating on Low
margin high volume business model which was not accepted by
parent company i.e. Unilever at UK because profits are not that
visible.
 ANALYSIS AND
PROPOSED SOLUTION
 ANALYSIS

Marketing challenge – According to the problem

HUL reached maturity level where the customer
base is a huge mass market and competition is
intense. In this stage sales is constant as because
no further scope of high sale as it reached deep
into mass and profit increases at a decreasing rate.
SOLUTION
Product differentiation or new
specifications in existing products .
 Innovation of new products.
 Bringing awareness among mass
about the use of new products and
use of existing products.
 Attractive promotion strategies
and pricing strategies.
 Lucrative offer for the buyers on
purchase of products and
capturing youth market.
 ANALYSIS

Logistics Challenges – In this problem HUL follows

centralized distribution system which causes big
delays to deliver the products to retailers in different
parts of the country and hence causes transportation
costs also.
SOLUTION

 Decentralization of product
stock to different parts of the
country at least four in four
regions i.e. east, west, north
and south.
 Active channel of
distribution and proper usage
of middleman and wholesale
dealers all over the country.
 ANALYSIS

HR challenges - Career growth and job

satisfaction level is less according to
students of IIM Ahmadabad PGP
students. According to them there is
limited career prospect in HUL.
SOLUTION
Decentralization of each product
line under which each segment of
product has its own control body.
 Brand managers and product
manager for each products
product line.
 Decentralization of authority or
control body for each segments
hence more scope for young
managers for their career
prospect.
 ANALYSIS

Financial Challenges – They

targeted every segment of the
market and hence followed the
“Low margin high volume
business model”. So profit was
less with respect to the total
turnover of the company i.e.
Rs.58000 crore per annum.
SOLUTION
Length of existing product line
should be minimized so that few
products with high pricing range
can be introduced rather than
large amount of low price
products.
 Quality products for middle class
and elite class consumers with
various specification and
innovative uses which was
undiscovered till now.
 They should consider about profit
structure rather than quantity of
low price products.
THANK YOU