Introduction to HUL Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company, touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. The company’s Turnover is Rs. 20, 239 crores (for the 15 month period – January 1, 2008 to March 31, 2009). HUL is a subsidiary of Unilever, one of the world’s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of €40.5 billion in 2008. Unilever has about 52% shareholding in HUL. Hindustan Unilever was recently rated among the top four companies globally in the list of “Global Top Companies for Leaders” by a study sponsored by Hewitt Associates, in partnership with Fortune magazine and the RBL Group. The company was ranked number one in the Asia-Pacific region and in India. The mission that inspires HUL's more than 15,000 employees, including over 1,400 managers, is to “add vitality to life". The company meets everyday 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 about 52 % of the equity.
Heritage HUL’s heritage dates back to 1888, when the first Unilever product, Sunlight, was introduced in India. Local manufacturing began in the 1930s with the establishment of subsidiary companies. They merged in 1956 to form Hindustan Lever Limited (The company was renamed Hindustan Unilever Limited on June 25, 2007). The company created history when it offered equity to Indian shareholders, becoming the first foreign subsidiary company to do so. Today, the company has more than three lakh resident shareholders.
The Anglo-Dutch company Unilever owns a majority stake (52%) in Hindustan Unilever Limited. HUL was one of the eight Indian companies to be featured on the Forbes list of World’s Most Reputed companies in 2007.
Unilever Lever Brothers was a British manufacturer founded in 1885 by William Hesketh Lever and his brother, James. It merged with Margarine Unie a Dutch company in 1930 to form Unilever.
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;
Brooke Bond joined the Unilever fold in 1984 through an international acquisition. 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 Chesebrough Pond's USA in 1986.
Another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Unilever Limited, to market Lakme's market-leading cosmetics and other appropriate products of both the companies. Subsequently in 1998, Lakme Limited sold its brands to HUL and divested its 50% stake in the joint venture to the company.
On 17th October 2008 , HUL completed 75 years of corporate existence in India
Brands of life
Food brands Brooke Bond 3 Roses Annapurna Red Label Brooke Bond Taaza
Bru Kissan Lipton TajMahal
Knorr Kwality Wall’s Kissan Amaze Brainfood
Personal care brands Axe Aviance LEVER Ayush Therapy
Breeze Clear Closeup Clinic Plus
Dove Fair & Lovely Hamam Lakme
Liril Pears Lux Lifebuoy
Pepsodent Rexona Pond’s
Home care brands Sunlight Active Wheel
Surf Excel Vim Cif
Rin Domex Comfort
Nutrition We've created policies and guidelines to ensure we always act responsibly when it comes to health and nutrition. We aim to act responsibly and have a strong nutrition policy Corporate social responsibility
Shakti: Economic development through micro enterprise HUL identifies underprivileged women in villages and these women are trained to become Shakti Entrepreneurs (SEs) i.e. distributors of HUL products in villages to earn a sustainable income through this business. HUL invests resources in training these village women to become entrepreneurs.
Water Conservation Water scarcity is one of the biggest crisis facing India. Water management has been a focus area for HUL, and has been made one of the key performance indicators for all HUL factories.
Silvassa Karchond near Silvassa spans 1491 hectares and has a population of 3253 consisting of 478 families. The chief occupation of the area is farming for 4 months when water is available. After this the population migrates to Daman Silvassa for labor/contract jobs. Thus, water conservation was a great necessity
built 14 bunds (structures made of sacks filled with sand) in 2003, 33 bunds in 2004, 31 bunds in 2005 ,18 bunds in 2006, 19 bunds in 2007, 6 bunds in 2008 and 19 bunds in 2009. Approximately 5 % of total run off was harvested in 2007. This enabled the community to sow a second crop, thereby significantly increasing their incomes.
Some key results 228 families benefited under various programs of the project Migration of approximately 60 families for 90 days stopped Rs. 900 thousand worth crops produced 134.90 TCM (Thousand Cubic Meter) of water harvested from 2003 to 2008 70 families use toilet blocks, 93 acres of land was converted into fertile land as a result of water harvesting
Disaster relief and rehabilitation Floods, Bihar, 2008 HUL contributed 10,000 kits worth Rs.60 lakhs as the first installment of material for immediate relief of the flood affected families of Araria District in Bihar. The kit contained essential items such as utensils, clothes, blankets and other useful material.
- Construction of 100 disaster proof houses for the purpose of rehabilitation; - Construction and development of a Community Resource Centre for people
Tsunami, South India, 2006 HUL contributed over Rs. 100 million towards relief and rehabilitation of tsunami affected families by the way of providing relief material, land and construction of facilities.
Gujarat Earthquake, 2001 HUL has also supported the construction of a school building, playground, multi-purpose community centre, crèche, health centre, underground reservoir, overhead tank, community room and a village administration office. All the structures are earthquake and cyclone resistant.
Empowerment of women through education Fair & Lovely Foundation Scholarships of up to Rs. 1 lakh are awarded to women with aptitude, drive & the ambition to carve a place of pride for themselves in society, but do not have the financial strength to realise their dreams.
Providing healthcare SanjivaniMobile Medical Facility
Caring for the vulnerable AshaDaan In 1976, HUL provided a 72,500-square feet plot to set up AshaDaan in the heart of Mumbai city. This home is supported by Mother Teresa & the Missonaries of Charity and cares for abandoned and challenged children, victims of HIV and the destitute. HUL bears the capital and revenue expenses for maintenance, upkeep and security of the premises.
Ankur In 1993, HUL set up Ankur, a centre for special education of challenged children at Doom Dooma. Ankur takes care of children aged between 5 & 15 years, with a range of challenges, including sight or hearing impairment, polio related disabilities, cerebral palsy and severe learning difficulties
Enhancing livelihoods Seventy five thousand poor women have benefited with an additional income of Rs.18.75 crore through a livelihood enhancement programme established by a unique corporate-NGO partnership between Hindustan Unilever Limited and DHAN Foundation.
Awards & recognition World HRD Congress 2010 'The Most Admired & Best HR Team Award‘ PadmaBhushan Customer and Loyalty Award 2009 Hewitt Associates Business Today Most Powerful Women in Indian Business CNBC TV-18 Global Indian Award
Top Companies for Leaders CNBC AWAAZ Consumer Awards 2009 Most Powerful Women in Indian business Global Achiever Award Most Admired Marketing Company EMPI-Indian Express Indian Innovation Awards Dun & Bradstreet–Rolta Corporate Awards 2008 Young Women Achiever Awards – 2009 India's Most Trusted Brands
Innovation in Unilever At the heart of our business Our aim: making a difference
The science behind ice cream's magic New technology for improved creaminess of ice-cream without increasing calories
The naked microscope Unilever at the International Congress of Nutrition Reducing salt in food Salt is essential for a healthy diet, but too much can cause serious problems.
The science of touch Why do we choose one product over another? You'd be surprised to learn how much happens in your unconscious each time you make a purchase. Francis believes that when we buy food or personal care items we're motivated by deeply embedded behaviours.
Future possibilities Protecting health through safe drinking water Pureit Innovation HUL’s Pureit innovation addresses one of the biggest technological challenges of the century – that of making microbiologically safe drinking water accessible & affordable for millions.
Product innovations Clean clothes, less water Smoother, straighter hair Intelligent deodorant Cool ice cream innovations Knorr: a revolution in stock Pioneering technology for Magnum Temptation
Sun Our primary natural resource, the sun evokes Unilever's origins in Port Sunlight and can represent a number of our brands. Flora, Slim·Fast and Omo all use radiance to communicate their benefits
Hand and Flower A symbol of sensitivity, care and need. It represents both skin and touch. Represents fragrance. When seen with the hand, it represents moisturisers or cream.
Bee Represents creation, pollination, hard work and bio-diversity. Bees symbolise both environmental challenges and opportunities.
DNA The double helix, the genetic blueprint of life and a symbol of bio-science. It is the key to a healthy life. The sun is the biggest ingredient of life, and DNA the smallest.
Hair A symbol of beauty and looking good. Placed next to the flower it evokes cleanliness and fragrance; placed near the hand it suggests softness.
Palm tree A nurtured resource. It produces palm oil as well as many fruits – coconuts and dates – and also symbolises paradise.
Sauces or spreads Represents mixing or stirring. It suggests blending in flavours and adding taste.
Bowl A bowl of delicious-smelling food. It can also represent a ready meal, hot drink or soup.
Spoon A symbol of nutrition, tasting and cooking.
Spice & flavours Represents chilli or fresh ingredients.
Fish Represents food, sea or fresh water.
Sparkle Clean, healthy and sparkling with energy.
Bird A symbol of freedom. It suggests a relief from daily chores, and getting more out of life.
Tea A plant or an extract of a plant, such as tea. Also a symbol of growing and farming.
Lips Represent beauty, looking good and taste.
Ice cream A treat, pleasure and enjoyment.
Recycle Part of our commitment to sustainability.
Particles A reference to science, bubbles and fizz.
Frozen The plant is a symbol of freshness, the snowflake represents freezing. A transformational symbol.
Container Symbolises packaging - a pot of cream associated with personal care.
Heart A symbol of love, care and health.
Clothes Represent fresh laundry and looking good.
Wave and Liquid Symbolises cleanliness, freshness and vigour. A reference to clean water and purity
SWOT Analysis Strengths:
Strong brand portfolio, price quantity & variety.
Presence of Established distribution networks in both
urban and rural areas.
Solid Base of the company.
Corporate Social Responsibility(CSR)
"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.
SWOT Analysis 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.
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.
MARKETING STRATEGIES OF HUL STRATEGIES I HAVE MADE
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. Buildsegments &marketfor the future where Unilever has strong expertise.
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.