Hindustan Lever Ltd IS NOWHindustan Unilever Ltd
VISIONto earn the love and respect of INDIA, by making a real difference to every Indian
“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.
Introduction• India’s largest fast moving consumer goods company with 80 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(52.10%) in Hindustan unilever limited.• The rest of the shareholding is distributed among about 360,675 individual shareholders and financial institutions
Contd……. Hindustan Unilever reported 1QFY12 sales of Rs55,039 mn (15% yoy, 1% above estimates) PBT (before exceptional items) of Rs7,487 mn(9% yoy, 1% below estimates). PAT of Rs6,272 mn was 7% above estimates due to higher exceptional income from sale of properties.Key highlights: HUL reported 8.3% volume growth in 1QFY12, lower than the double-digit volume growth reported in the past 5 quarters. Gross margins for the quarter were down 311 bp following increased raw material prices. Share price 382.05 rs
• Lux,Lifebuoy,Dove Personal • Pears, Rexona, wash • Breeze • Surf Excel, Laundry • Wheel, Sunlight • Fair & Lovely, Ponds Skin Care • Vaseline • Sun silkHair Care • clinic plus • Pepsodent Oral Care • Close up • AxeDeodorants • Rexona ColorCosmetics • LakmeAyurvedic • Ayush
PRODUCT SEGMENTS OF HUL Exports, 6% Others, 2% Ice creams, 1% Foods, 4% Beverages, 12% Soaps and Detergents, 48% Personal Products, 28%
HOME CARE HUL COMPETITORS• Surf Excel • Ariel• Wheel • Nirma• Rin • Tide• Cif • Exo• Vim • Lizol• Domex• Sunlight
Food Brands HUL Competitors• Brook Bond Taj Mahal • Gemini Tea• Brook Bond Bru• 3 Roses • Nescafe• Lipton • Tata Salt• Taaza • Maggi• Red Label• Annapurna• Kissan• Knorr• Modern Premium Brand• Kwality walls
Water Brands• Pure it ( In home water purifier)• As Safe As Boiled Water• Doesn’t need gas, electricity, or continuous water supply• No residual chlorine• Free home demonstrations
SWOT ANALYSISStrengths• Strong brand portfolio, price, quantity, & variety• Innovative Aspects• Presence of established distribution networks in both urban and rural areas• 3400 distributors• 16 million outlets over the world• 700million customer base• Strong R&D of the company• Highly skilled human resources• Corporate social responsibility
SWOT ANALYSISWeakness• Strong Competitors• Changing Consumption pattern• High costs (Advertising & promotional expenses in 2010 was 750 crores)Opportunities• Large domestic market• Changing life styles and rising income levels i.e. increasing per capita income of the consumer• New category openings – Medicines, Biscuits
SWOT ANALYSISThreats• Loosing market share in most categories(High Competition)• Food price inflation & economic slow down• Local players set to mimic major brands• Increasing cost of raw materials• Tax and regulatory structure
PROMOTION• Beverages : Broke Bond Taj Mahal• Theme of the brand: Taj is not just a cup of tea, it is a sensory experience• It was the first brand to introduce “Tea Bag. And this is only brand to sold Vacuum sealed packs.• Tag Line : Wah Taj
Promotional campaigns of Taj• 1990: Hazaron me ek tea was promoted using the baseline “Wah Taj”. Brand ambassador Tabla Maestro Ustaad Jakir Hussain• 2003:Base line was changed to subse khas Taj ehsas.• 2006: wah wah Taj• 2007 : Saif ali khan was brand ambassador baseline was again changed to “wah Taj”.
Innovation promotional campaign of Brook Bond• Taj Mahal Sample various teas in a guided tea tasting• Learn the art of making the perfect cup• Become a certified Tea connoisseur• Enjoy traditional tea-time snacks• Taj Mahal is also associated with "Enlightened Film Society" - an association for the connoisseurs of cinema. Enlightened film Society along with Taj Mahal tea brings the treasured pieces from world cinema to the big screen and make it accessible to an audience thirsty for excellence captured on celluloid.
PROMOTIONBeverages : Brooke Bond BRU• Unilever’s only coffee brand• Enjoys a rich heritage, came into existence in 1962 under the brand name Deluxe Green Label• Consistently offering better and newer products to the consumer through improved packaging solutions and innovative product formats• Enjoys strong presence at various out of home locations
Innovation promotional campaign of Brook Bond BRU• Some of the commercials that came up was – The theme revolve around the shy girl wanting to introduce her boyfriend to her father – ‘Little cup’ to tell the ‘good news’. – Tamil adds related to starting marriage procedure to the day of marriage targeting the south Indian people – BRU Just go with your saathiya contest(2002-03).
PROMOTION• SPREADS & DRESSINGS : KISSAN• Theme: Kissan wants to be the brand which will help dissolve tension between mother and the family during informal good food moments. With kissan, good food is loved not shoved.• The main target segment for the brand is the growing kids and the positioning is:”deliciously wholesome products for kids to grow up
Innovation promotional campaign of KISSAN• It has come out with an innovative squeezy package for the Ketchup &Jams which have become very popular• Brand ambassador Rahul Dravid• The brand also has came out with Low calorie jam to appeal to the health conscious crowd
PROMOTION• Soups & Meal Maker : KNORR• The Key theme of brand is : “Chefmanship and expertise”.• The ads of the brand mainly focus on the functional attributes which is evident from this tagline : “Naya Knorr Soup,Asli sabzion ka Zadoo”.
PROMOTIONPERSONAL CARE : LUX• 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 body soap.
Innovation promotional campaign of LUX• Since the 1930s,over 400 of the world’s most stunning and sensuous women have been proudly associated with Lux Advertisement.• Very First ambassador : Leela Chitnis• First Indian male brand ambassader: Shah Rukh Khan.• With top movie stars- • From Madhubala to Madhuri, From babita to Karishma and Kareena, interspaced with leading film stars Hema malini, Juhi chawla and Sreedevi , Aishwarya rai, Priyanka chopra,Katrina Kaif having endorsed the goodness of lux over generations. • Latest Asin
PRICE• Value Pricing: It involves setting prices reasonably at a lower level compared to competitors through careful streamlining of operations to become a low-cost firm without sacrificing quality.• Customer- Segment Based Pricing: HUL focuses on pricing its products according to different customer-segments. For ex: Broke bond Sehatmand for the lower-middle class and TajMahal for the upper-middle class or the rich people, i.e. for its Premium Customers
• Low Cost/Cheap Products: This is a common strategy widely adopted by manufacturing and marketing concerns where the price can be kept low by low unit packing like paisa pack of tea, Kissan jam sachets etc.• Product from pricing : Different versions of product are priced differently but not proportionately to their respective costs.
Place• Cutting –edge distribution network- At HUL distribution network is one of the key strengths that help them reach their products across the length and breadth of this vast country. It has 2000+ suppliers and associates 7000 stockists and direct coverage in over 1 million retail outlets across the India.• RS Net —An IT –powered system has been implemented to supply stocks to redistribution stockists on a continuous replenishment basis.
MARKETING STRATEGIES OF HUL FOR URBAN INDIA• Focuses on short supply chain for distribution• To meet the every need of people everywhere• Build segments & market for the future where unilever has strong expertise• Also uses Direct selling channel, franchisee to reach every one e.g. Unicare
MARKETING STRATEGIES OF HUL 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
• Providing education on health and hygiene• Women empowerment• Water management• Rehabilitation of special or underprivileged children• Care of the destitute and HIV-Positive• Rural development• Plays active role in natural calamities