INTRODUCTION

India's largest Fast Moving Consumer Goods company with 100 factories across India.

In 1931, first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935).

HUL formed in November 1956;

The Anglo-Dutch company Unilever owns a majority stake in Hindustan Unilever Limited.

one of the country's largest exporters and recognised as a Golden Super Star Trading House

The mission – “add vitality to life.”

Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company, with leadership in Home & Personal Care Products and Foods & Beverages. HUL's brands, spread across 20 distinct consumer categories, touch the lives of two out of three Indians.

The mission that inspires HUL's over 15,000 employees is to "add vitality to life".

Power Brands, HUL meets every day needs for nutrition, hygiene, and personal care

with brands that help people feel good, look good and get more out of life. It is a

mission HUL shares with its parent company, Unilever, which holds 52.10% of the

equity. A Fortune 500 transnational, Unilever sells Foods and Home and Personal

Care brands in about 100 countries worldwide.

VISION OF THE COMPANY

PRODUCT LINES AND PRODUCT MIX

Hindustan unilever ltd

Personal washLux, lifebuoy, dove

Pears, rexona, breeze,

LaundrySurf excel

Wheelsunlight

Skin careFair & lovely

Pondsvaseline

Hair careSunsilkClinic

Oral carePepsodent

closeup

DeodorantsAxe

rexona

Color cosmetics lakme

ayurvedic ayush

PRODUCTS

CONTRIBUTION TO DIFFERENT SECTORS

HOME & PERSONAL CAREFOODSEXPORTSOTHERS(CHEMICALS, WATER)

16.2%

7.3%

2.2%

HUL SOAPS

• Lux was launched in UK in 1899 as a Laundry soap to

wash delicate(silk) clothes in home.

• In India, Lux launched in 1929 & it has proved to be a powerful brand in beauty soap segment.

• From the starting, it has been claimed as “The Beauty Soap Of Film Stars”.

• In 2006, Lux was awarded as Awaz consumer Award 2005 as the most preferred toilet soap.

• Dove was launched in 1955 in US. It has been available in India from 1995.

• It has proved to have ¼ of moisturising cream that maintains the skin be smooth & soft.

• In 2004, HUL’s campaign of Real Beauty by Ogilvy inspired women to have the confidence to be comfortable with themselves & in 2006 it got the Grand Effie Award.

• Launched in 1895 in UK and then in India.

• A Low cost soap catering huge population.

• The jingle, ‘Making a billions of Indian feel safe and secure’

Says everything!!

• Comes with different varieties and treats different needs.

Competitors of HUL SOAPS

HUL brands Competitors brands

• Lux Santoor, Chandrika

• Rexona Cinthol, Mysore

• Breeze Godrej no. 1, Nirma

• Liefeboy Dettol

• Pears Camay

• Dove Marga

• Hamam Cinthol

• Liril Savalon

HUL’s SOAP MARKETSHARE

FY04 FY05 FY06 FY07 FY080%

10%

20%

30%

40%

50%

60%

HULNIRMAGCPL

54%

6% 9%6%

10%

HUL SHAMPOO

Sunsilk was launched in1964, is the largest beauty shampoo brand in the country. Positioned as the 'Hair Expert', Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results.

The benefits are more compelling and relevant since the variants are harmonised in terms of the product mix - fragrance, colour and ingredients are all well linked to cue the overall synergy. The range comes in premium packaging and design. The accent is on "It knows you, and hence knows exactly what your hair needs".

Clinic Plus Health shampoo was launched in India in the year 1987. It is India's largest selling shampoo, offering the five most important hair health benefits: strengthens weak hair, prevents hair breakage, softens rough dry hair, shine for thick and healthy hair, and contains anti-dandruff ingredient.

The franchise also includes Clinic All Clear Total, first introduced in 1996. It is a dual shampoo – it not only fights the last dandruff flake, but also adds back lost nutrients to make hair healthy and beautiful. Clinic All Clear Total is a dandruff solution for everyday.

DOVE SHAMPOO

Became India’s Largest Premium Shampoo Brand within the launch of 1 year.

HUL is upgrading Dove time to time to meet

customer needs e.g. Dove Daily, Dove Dry Therapy, Dove Breakage Therapy

& so on…

Competitors of HUL Hair Care

• Sunsilk

• Clinic Plus

• Dove

• Pantene

• Head n Shoulders

• Loreal

• Garnier

HUL Oral Care

• Pepsodent, launched in 1993, was the first toothpaste with a unique anti-bacterial agent to address the consumer need of checking germs even hours after brushing.

• Pepsodent packs included a Germ Indicator in February-May 2002, which allowed consumers to see the efficacy in fighting germs. As a follow-up, in October 2002.

• The relaunch campaign in October 2003 widened the context to "sweet and sticky" food and leveraged the truth that children do not rinse their mouths every time they eat, demonstrating that this makes their teeth vulnerable to germ attack.

• Pepsodent's most recent campaign aims at educating consumers on the need for germ protection through the night.

Pepsodent also includes a range of toothbrushes.

Closeup is the original youth brand of India.The first brand targeting youth in the oral care market, with an edgy and youthful image which stays relevant till date. Ever since its launch in 1975Closeup was the first gel toothpaste to be launched in India and has led the gel toothpaste segment ever since. Closeup became the first Gel toothpaste with Fluoride in the Indian Market!The brand umbrella also includes Closeup Lemon Mint, gel toothpaste with the whitening benefits of lemon.The latest entry in the Closeup stable is Closeup Milk Calcium – revolutionary new toothpaste with the goodness of milk calcium

Competitors of HUL Oral Care

• Pepsodent

• Close Up

• Colgate

• Dabur

• Anchor

• Meswak

TOOTHPASTE MARKET SHARE

FY04 FY05 FY06 FY07 FY080%

10%

20%

30%

40%

50%

60%

COLGATEHULDABUR

33% 32%

48%49%

9%

HUL COSMETICS

Named after the French opera Lakmé

Lakme started in 1952 as a 100% subsidiary of Tata Oil Mills

In 1998 Tata sold off their stakes in Lakmé Lever to HLL

It offered a range of cosmetics with nail polishes & lipsticks from the early 80’s

It has introduced a range of skincare products from 1987.

Competitors :

Revlon, Maybelline,L’Oreal

Theron T. Pond, a pharmacist from New York, introduced 'Pond's in 1846

In 1886 it was relaunched as Pond's Extract and in 1914 Pond's Cold Cream

In 1955 Pond's Extract Company merged with Chesebrough Manufacturing and in 1987 Unilever purchased Chesebrough-Pond's

Competitors:

Nivea, Charmise

HUL FOOD BRANDSTEA

• Brooke Bond

• Lipton

COFFEE

• Brooke Bond Bru

• FOOD

• Kissan

• Annapurna

• Knorr

• ICE CREAM

• Kwality Walls

TEA

Brooke Bond Red Label was launch in 1903

It is India's single largest tea brand

SALT

The brand currently operates in two of the largest, almost universally consumed, foods categories of the country – Salt & Atta (wheat flour)

ICE CREAM

• Kwality Wall's, launched in 1995

• Key launches includes. Cornetto, Feast, Viennetta, and a range of Sundaes, and also exciting eats for children specifically, like Lime Punch or Sunshine Zing Cone

HUL LAUNDRY CARE

Pioneer in Indian detergent powder.

Constantly upgraded itself.

e.g. Surfexcel Blue, Quick wash,

Launched in 1969, Rin with the power of its thunderous lightning flash has become a household name synonymous with dazzling white clothes.

A Value added brand with different variants e.g. Rin matric & Rin advanced.

Rin has won a number of accolades, the most recent being voted as the Most Preferred Detergent brand in India at the Awaaz Consumer Awards in 2006.

• A Heritage brand launched in 1888

In the form of detergent cake.

• Value added brand i.e. priced over Wheel but below Rin.

Famous in WB & Kerala.

• Low priced detergent.

• Introduced in 1987 to compete with Nirma.

COMPETITORS

• SURF EXCEL

• ARIEL

• WHEEL

• NIRMA

• RIN

• TIDE

MARKET SHARES

SWOT Analysis

Strengths:

• Strong brand portfolio, price quantity & variety.

• Innovative Aspects.

• Presence of Established distribution networks in both urban and rural areas.

• Solid Base of the company.

• Corporate Social Responsibility(CSR)

• One of the major strengths of HUL is its distribution

network, which has foot print even in the rural areas.

Their reach makes them the market leader in FMCG. The

brand value of HUL products is very high so its keeps

them ahead of competition. The need for product

improvement and innovation is the main agenda of HUL

which augurs well for the future. HUL has been

continuously able to grow at a rate more than growth

rate for FMCG Sector, thereby reaffirming its future

stronghold in Indian market.

Weaknesses:

• "Me-too" products which illegally mimic the labels and brands of the established brands.

• Strong Competitors & availability of substitute products.

• Low exports levels.

• High price of some products.

• High Advertising Costs.

• HUL’s extensive reach and country wide presence

enabled them to rise the prices of the detergents even

though the raw material prices were decreasing. This

has allowed HUL to gain more profits but the volume

came down, this allowed a lot of competitors to grow.

HUL was backing its power brands with an idea to earn

high revenues. HUL's weakness was its inability to

transform its strategies at the right time. They continued

with the same old strategy which helped HUL gain

profits but was not genuine in this changing

environment. The competition has put HUL on the

defensive mode.

Opportunities:

• Large domestic market – over a billion populations .

• Untapped rural market.

• Changing Lifestyles & Rising income levels, i.e. increasing per capita income of consumers.

• Export potential and tax & duty benefits for setting exports units.

• HUL has a large customer base; people who do not use

HUL’s detergents but use other HUL products can be

influenced to use HUL detergents. According to the

forecasting done the detergent market is expected to

grow by double digit. The per capita consumption of

detergents in India is pretty high. The buying patterns of

consumers for detergent segment have been changing

which again augurs well for HUL.

Threats:

• Tax and regulatory structure.

• Mimic of brands

• Removal of import restrictions resulting in replacing of domestic brands.

Temporary Slowdown in Economy can have an impact on FMCG Industry

Strong backing of Power brands by HUL and the

continuation of old strategy which helped HUL to gain in

revenues created opportunities for its competitors to

grow. This situation created avenues for Local

detergent manufacturers to enter the market with

cheap detergents. Lot of imitation or me-too products

gained popularity at the expense of HUL. Government

regulations have been relaxed which has helped the rural

players to set up their business and they now pose a

threat to HUL. The price war among HUL and its

competitors has intensified and this has made HUL to cut

down the prices of detergents. The market share and the

sales volume has been affected due to the entry of local.

MARKETING STRATEGIES OF HUL

FOR URBAN INDIA• Adopted Total Productive Maintenance(TPM)

to meet zero error, zero loss.

• Focuses on short supply chain for distribution.

• To meet the every needs of people everywhere.

• Also uses Direct selling channel(HUN), franchisee to reach everyone e.g. Aviance, Ayush.

• Build segments & market for the future where

Unilever has strong expertise.

FOR RURAL INDIA

For long term benefits, HUL started Project Streamline in 1997.

Appointed 6000 Sub-stockists that directly covers about 50,000 villages & 250 million customers.

Integrate Economic, Environment & Social objectives with Business agenda.

Project Shakti, partnership with Self help groups of Rural women & covers 5000 villages in 52 districts in different states.

Corporate social responsibility

Providing education on health and hygiene

Women empowerment

Water management

Rehabilitation of special or underprivileged children

Care for the destitute and HIV-positive

Rural development.

Plays active role in natural calamities

Started in 2001, Shakti is HUL's rural initiative, which targets small villages with population of less than 2000 people or less.

micro-enterprise opportunities for rural women

Providing health n hygiene education through shaktivani program

ishakti portal

Shakti has already been extended to about 15 states ,80,000 villages in with 45,000 women entrepreneurs and generating Rs.700-1000 per month to each women.

MARKETING MIX

Product

HUL can go with their existing range of detergents are

they are doing well in terms of sales volumes. Their market

share although has decreased, with the reduction in prices.

An effort is there to get the production cost down by having

pared down the color palette used for printing across

many products. The system has been used to reduce

printed packaging costs. Some non performing brands like

Breeze should be shelved out.

According to the survey results (Refer Appendix F)

Surf excel is the most widely used detergent in its

segment. The need to have a good fragrance in the

detergents is emphasized. An Insta- whitener and liquid

detergent market can be entered as per the feedback got

from the survey.

Price

The prices of all the detergents of HUL have

been reduced considerably to compete with the

competitors. For e.g. 30% Price reduction in Rin and

20% price reduction in Surf excel they hope to get

back that market share. If the production cost is

reduced then the price of the detergents will come

down. An effort to reduce the cost has to be a top

priority.“Zero inventory” and “Go to the market”

initiative to reduce cost and increase efficiency.

Place

The distribution network of HUL is one of the best in this

industry. Efforts must be taken to use technology like SAP

which help in managing the distribution effectively. Some

of the benefits of SAP are

• Streamlined business operations

• Improved information sharing with partners even

if they are not using SAP’s solutions

• Increased supply chain efficiency through process-centric collaboration across the

Enterprise—internally and externally

• Enhanced value of legacy system

Introduction of Exclusive shelves of HUL products in

Supermarkets wherein only HUL products are displayed

together. This will enhance the shopping experience of the

consumer and there will be no conflicts of brands.

PromotionGreat advertising is inspired by insights about brands, consumers,

and how the two interact. It starts with a problem from the client

and ends with a solution to the customers.

As seen from the survey, many people do not identify HUL

products and are not aware of the features of specific products,

so an effort to educate the customer through promotions must

be taken.

C reativity defined

Creative ads make a relevant connection between the brand and

its target audience and present a selling idea in an unexpected

way. Creative ads present a selling idea.

Media

When and where a message runs can be as creative as the

words and visuals. Everyday items have become media

vehicles. HUL can promote its line of detergents on dress

hangers in trains and buses frequented by women. The hangers

can come with a message “Want your dress to be bright and clean

use Surf Excel/ Rin/ Wheel”*.

OVER 100 YEARS LINK WITH

INDIA YEAR MILESTONES

1888 Sunlight soap introduced in India.

1895 Lifebuoy soap launched; Lever Brothers appoints agents

in Mumbai, Chennai, Kolkata, and Karachi.

1902 Pears soap introduced in India.

1905 Lux flakes introduced.

1914 Vinolia soap launched in India.

1922 Rinso soap powder introduced.

1937 Mr. Prakash Tandon, one of the first Indian covenanted managers, joins HVM.

65% of managers are Indians.

1956 Three companies merge to form Hindustan Unilever Limited,

with 10% Indian equity participation.

1958 Research Unit starts functioning at Mumbai Factory.

1959 Surf launched.

1961 Mr. Prakash Tandon takes over as the first Indian Chairman;

191 of the 205 managers are Indians.

1967 Hindustan Unilever Research Centre, opens in Mumbai.

1969 Rin bar launched; Fine Chemicals Unit starts production; Bru coffee launched

1977 Jammu synthetic Detergents plant inaugurated; Indian shareholding increases to 18.57%

1982 Government allows 51% Unilever shareholding.

1991 Surf Ultra detergent launched.

1995 HUL and Indian cosmetics major, Lakme Ltd., form 50:50

joint venture- Lakme Lever Ltd.; HUL enters branded staples

business with salt; HUL recognised as Super Star Trading House.

1997 Unilever sets up International Research Laboratory in Bangalore; new Regional

Innovation Centres also come up.

2005 Launch of "Pureit" water purifiers

2007 Company name formally changed to Hindustan Unilever

Limited after receiving the approval of share holders during the

74th AGM on 18 May 2007

Sales of Brooke Bond and Surf Excel each cross the Rs 1,000 crore mark

2008 HUL completes 75 years on 17th October 2008.

DISTRIBUTION AND RETAIL

FACTORY

JUST IN TIME DEPOT

CUTOMER SERVICE PROVIDER

BIG BOX RETAILER

CONSUMER

One of the Major contributors to HUL’s success is its Supply chain and networks. HUL is able to maintain its market share in the detergent industry because of their strong distribution channel and wide reach across the country.

Fig 3.1 Schematic of the distribution network of HUL

HUL ensures that consumers have ready access to their products across

every corner of urban and rural India. Their retail and distribution system

spreads across the length and breadth of the country. Their distribution

network, comprising about 7,000 redistribution stockiest.6.3 million retail

outlets reaching the entire urban population, and about 250 million rural

consumers.

A total of 140 respondents have taken the survey and the results are as follows.

Questionnaire

Section A: Please choose any one of the options

1. Which detergent do you use for washing clothes?

a. Surf excel

b. Ariel

c. Wheel

d. Rin

e. Nirma

f. Others (Please specify)

BrandSurf Excel Ariel Rin Henko Others Wheel

5%10%

5%

5%

20% 55%

2. What is your frequency of buying detergents for washing clothes?

a. Daily

b. Weekly

c.Fo

rtnigtd.M

onthly

By the graph below it is seen that people prefer to buy detergents once in a

month, and none of the respondents buy it daily.

3. What is the quantity of detergent you buy usually?

a. Sachetb. 500gmsc. 1 kgd. 2 kgs

By this graph we can interpret that people prefer to buy 1kg detergent packets.

4. Where do you usually buy the detergent?

a. Departmental store

b. Super market/ Retail

c. Hyper super market

e. Door to door sale/ Home delivery

5. Do you use washing machine for washing clothes or hand wash?

a. Washing

b. Hand wash

6. Which detergent do you use for washing machine?

a. Surf excel automatic front loadb. Surf excel automatic top loadc. Arield. Wheele. Rinf. Nirmag. Others

7. Are you aware that HUL detergents consume less water while washing clothes?a) Yesb) No

8. Are you satisfied with your detergent?

a) Yesb) No

9. Do you like the fragrance of the clothes after they are washed using your preferred

detergent?

a) Yes

b) No

10. Can you differentiate between a HUL brand of detergents and other brands?

a) Yes

b) No

Section B: Please circle your choice in each of the options

10. How do you rate the quality of the detergent?

V Poor Poor Average Good V Good

Surf Excel 1 2 3 4 5

Ariel 1 2 3 4 5

Wheel 1 2 3 4 5

Rin 1 2 3 4 5

Nirma 1 2 3 4 5

On an average Surf Excel’s quality was rated Good. Ariel, Wheel, Rin and Nirma

were rated Average. Tide was rated good.

11. How do you rate price of the detergent?

V Cheap Cheap Average Costly V Costly

Surf Excel 1 2 3 4 5

Ariel 1 2 3 4 5

Wheel 1 2 3 4 5

Rin 1 2 3 4 5

Nirma 1 2 3 4 5

On an Average Surf Excel was rated Costly and all others except Wheel were rated Average. Wheel was rated cheap.

12. How do you rate the packaging of the detergent?

V Poor Poor Average Good V Good

Surf Excel 1 2 3 4 5

Ariel 1 2 3 4 5

Wheel 1 2 3 4 5

Rin 1 2 3 4 5

Nirma 1 2 3 4 5

Others 1 2 3 4 5

(Please specify)

Surprisingly all the detergents except Wheel were rated Good. Wheel was rated Average

13) What is your annual Income in Lakhs? (Please tick one)

A.1, 50,000.Rs to 2, 50,000.Rs ( )

B.2, 50,000.Rs to 3, 50,000.Rs ( )

C.3, 50,000.Rs to 5, 00,000.Rs ( )

D.5, 00,000.Rs to 6, 50,000.Rs ( )

E. 6, 50,000.Rs and Above ( )

14. Which age group do you belong? (Please tick one)

A. 19 years and below ( )

B. 20-29 years old ( )

C. 30-39 years old ( )

D. 40-49 years old ( )

E. 50 years and above ( )

15. What is your gender? (Please tick one)

A. Male ( )

B. Female ( )

Male were 60%, Female 40%,

16. What is your occupation? (Please tick one)

A. Student ( )

B. Employed ( )

C. Retired ( )

D. Homemaker ( )

65% of the respondents were students, 20% were employed, and 15% were homemakers.

17. Which product does HUL needs to include in their portfolio of detergents?

Please fill the blank

70% of the respondents felt that HUL should include the Insta-whitener Liquid and

45% of respondents wanted liquid detergent.