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  • Ankit:HUL is India’s largest FMCG company by market capitalization and revenueMarket leader in 6 out of 7 segments No. 2 position in the rest
  • Transcript

    • 1. Hindustan Unilever Limited
      Group Members:
      HareeshGunti (08)
      JigarJani (09)
      Prolin B. Nandu (20)
      GowriNayak (21)
      Dhruvesh Sanghvi (25)
      Ankit Shah (27)
      Prasad Shahane (30)
    • 2. FMCG Industry
      FMCG products are products that have quick shelf turnover, at relatively low cost and don’t require a lot of thought, time and financial investment to purchase
      FMCG Industry mainly deals with production, distribution & marketing of packaged goods to all consumers
    • 3. FMCG Industry in India
      Fourth largest sector in the economy
      Size - US$13.1 billion
      Strong MNC Presence
      Well established distribution network
      Competition between organized and unorganized sector
      Low Costs of labour and Easy availability of key raw materials
    • 4. FMCG Industry in India
      Set to reach a size US$ 33.4 billion in 2015
      Penetration levels in several products categories low
      India one of the largest economies in terms of purchasing power with a middle class of 300mn
      Rural India a huge market still to be tapped
      Source: SOI, NCAER
    • 5. FMCG – Major Domestic Players
      Domestic Players
      Britannia India Ltd (BIL)
      Dabur India Ltd
      Indian Tobacco Corporation Ltd (ITCL)
      Nirma Limited
    • 6. FMCG – Major Foreign Players
      Foreign Players
      Cadbury India Ltd (CIL)
      Coca Cola
      Colgate-Palmolive India
      H J Heinz Co
      Hindustan Unilever Ltd (HUL)
      Nestle India Ltd (NIL)
      Procter & Gamble Hygiene and Health Care Limited
    • 7. Hindustan Unilever Ltd
      HUL touches the lives of two out of every three Indians everyday
      Part of the €40 billion Unilever Group. The Group has more than 400 brands spanning 14 categories of home, personal care and food products
      Presence in over 100 countries and employs more than 174,000 people worldwide
      The Company was incorporated in 1933 but its products have been sold in India since 1888
    • 8. Hindustan Unilever Ltd
      India’s largest FMCG Company
      Headquartered in Mumbai
      Over 700 million consumers
      More than 15,000 employees, including 1,300 managers
      More than 200 highly qualified scientists and technologists
      Shares listed at BSE (Stock code - 500696) and NSE (Stock code – HINDUNILVR)
      Shareholder base of over 3.5 lakh
    • 9. HUL – Mission
      Unilever's mission is to 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.
    • 10. HUL – The Journey so far…
      A little bit of the History of HUL formation
    • 11. HUL – Geographic Presence
      More than 35 manufacturing locations across India, with major hubs being Assam, Uttaranchal, Himachal Pradesh, Pondicherry and Dadra & Nagar Haveli
      Marketing – All States in India, Project Shakti
    • 12. Critical Success Factors
      Clear Brand Identity –Visible elements of a brand (colours, design, logotype, name, symbol) that together identify and distinguish the brand in the consumers' mind)
      Market Reach – Estimated number of the potential customers it is possible to reach through a an advertising medium or a promotional campaign
      Tangible and intangible benefits of the brand
      Unique Selling Proposition - Differentiation
    • 13. Critical Success Factors
      Operational Effectiveness
      Contain low cost competition:
      Focus on achieving cost competitiveness to counter low cost competition
      Right goods, Right time, Right quality @ Right cost
      Innovate aggressively:
      Innovate, Growth, Mature, Innovate
      Ensure the future of business
    • 14. Critical Success Factors
      Winning Through People
      Attract and retain top quality talent:
      Business leadership programme or new category organisation structure
      Success will only be achieved through highly motivated and effective people
      Customer and Supplier Management
      Satisfying customers
      Management of the total supply chain
    • 15. Critical Success Factors
      Commitment at all levels
      Allowing each unit to develop initiatives
      Providing Budgetary Support to sub groups
      Strategic Level
      Successful implementation of the strategic objectives
      Power brand to expand profitably to grow the business (eg: Restructure in HLL 2001)
      IT Systems
      Excellence in IT systems
    • 16. HUL – Product Portfolio
    • 17. HUL – Product Portfolio
    • 18. HUL – Product Portfolio
    • 19. HUL – Product Portfolio
    • 20. HUL – Financials
    • 21. HUL – Financials
    • 22. HUL – Porter’s Five Forces
    • 23. HUL – Porter’s Five Forces
    • 24. HUL – Porter’s Five Forces
    • 25. HUL – Porter’s Five Forces
    • 26. HUL – Porter’s Five Forces
    • 27. HUL – Porter’s Five Forces
    • 28. SWOT Analysis
    • 29. SWOT Analysis
    • 30. SWOT Analysis
    • 31. SWOT Analysis
    • 32. Ansoff matrix: Products & Brand Strategic Framework
      Existing Products
      New Products
      Existing markets
      New markets
    • 33.
    • 34.
    • 35. BCG Matrix-HUL
      Processed foods
      Colour Cosmetics
      Hair Care
      Skin Care
      Premium Soaps & Laundry
      Water (PureIt)
      Mass Soaps
      Oral care
      Sea-food exports
    • 36.
    • 37. Structure
      Board at the apex-Headed by Chairman,
      comprising 5 whole time Directors and 5 independent non-executive Directors.
      Divisions: Each division is self-sufficient with dedicated resources and assets in sales, marketing, commercial, and manufacturing.
      Each category and each function - Sales, Commercial, Manufacturing - is headed by a Vice President.
    • 38. For managing sales operations, HUL divides the country into four regions, with regional branches in Delhi, Kolkata, Chennai and Mumbai.
      In Marketing, each category has a Marketing Manager who heads a team of Brand Managers dedicated to each or a group of brands.
      Each Division has a nationwide manufacturing base, with each factory peopled by teams of Production, Engineering, Quality Assurance, Commercial and Personnel Managers.
    • 39. Systems
      Substantial investments in IT-based sales system
      Every salesman now books orders on a palmtop
      All orders are fed into a central database from the distributor point.
      This extensive network is installed at all 3,500 distributor points—which makes for accurate on-the-fly demand projections and helps avoid stock-out losses.
    • 40.
    • 41. Style
      NitinParanjpe- Youngest CEO & MD
      'CEO Factory’-Produced many business leaders
      HUL's leadership development model has groomed managers by providing a well-rounded view of the business through job rotation and various new assignments.
      The system was designed to identify fast-trackers, who were called the Lever listers and groom them for handling greater responsibilities. For every position, typically three people competed.
    • 42. Shared values
      Unilever's mission is to 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.
      Unilever has earned a reputation for conducting its business with integrity and with respect for all those whom our activities affect.  
      Singular belief that ‘what is good for India is
      good for HUL’.
      It has strategically introduced new products on “think global and act local” concept
      Deep roots in local cultures and markets around the world give it a strong relationship with consumers.
    • 43. Staff
      15,000 employees, including 1200 managers, 200 scientists.
      HUL has a strong management bandwidth having a team of professionals for each SBU.
      At HUL, career paths are designed such that they will build employees into business leaders. Employees would start from a managerial level in any of the following functions: commercial , technical, sales & marketing, IT, HR
      The objective of each path is however the same: to give the employee a strong foundation so that she would be in a position to take on complete ownership for a brand or a unit.
    • 44. Skills
      Has in-house manufacturing as well as outsourcing
      R&D support from parent company
      Large distribution network
      Strong management
      Has the best marketing talent in the industry
    • 45. HUL Strategy
      Leverage brand portfolio and consumer understanding by
      • Straddling the pyramid & deploying full portfolio
      • Driving consumption & penetration opportunity
      Winning with consumers, channels, segments/markets of tomorrow
      • Build markets and capabilities for the future
      • Leverage Unilever scale and know how
      Drive increased execution rigour
      Step-up in cost efficiency initiatives
      Integrate economic, environment & social objectives with business agenda
    • 46. Leverage brand portfolio and consumer understanding by
      Changing Pyramid – Changing Income Pattern
    • 47. Leverage brand portfolio and consumer understanding by
    • 48. Identifying the opportunity and filling it is important
      Although HUL is market leader in most of the category, its loosing its market share.
    • 49. Increasing consumption:Lifebuoy Hand wash Programme
      Since 2002, the project has touched 50,676 villages and 120 million people.
      Campaign Impact
      •Awareness of germs - 52% to 83%
      •Association of germs with disease - 35% to 57%
    • 50. Consumers of tomorrow: Dove
    • 51. Lipton Tea & Taj Mahal Tea Bags
    • 52. Channels of Tomorrow
    • 53. Pioneering new channels
      In March 2009, HUL adapted ‘go-to-market’programme
      First tried out in Mumbai, it was than implemented across all towns and cities with a population above eight lakh, starting with Chennai.
      Earlier, HUL had different distributors for its home and personal care division and food division in the same area. Now, all the products would be sold by the same distributor in any one area.
      The Go-to-Market model also helps to remove the enormous logistics hitherto faced by the distributors in their back-end operations, thus removing significant costs from the system. More importantly, enabling them to focus on the front-end to deliver better services to end-retail,”
    • 54. Pioneering new channels
      Project Shakti :
      HUL's partnership with Self Help Groups of rural women.
      Hindustan Unilever Network (HUN):
      Direct Selling Channel - Home & Personal Care and Foods.
      Alliance with Pepsi Co. – Vending machine for hot beverages like tea and coffee.
      Health and Beauty services :
      Lakme Salons provide specialised beauty services and solutions.
      Ayush Therapy Centres easy access to authentic Ayurvedic treatments and products.
    • 55. HUL’s distribution system
      7,000 redistribution stockists covering about one million retail outlets.
      The general trade comprises grocery stores, chemists, wholesale, kiosks and general stores.
      Hindustan Unilever provide tailor made services to each of its channel partners.
      HUL is using the point of purchase method for much higher level of direct contact, through in-store facilitators, sampling, education and experience.
    • 56. Distribution Strategy - Harnessing Information Technology
      An IT-powered system has been implemented to supply stocks to redistribution stockists.
      The objective is to make the product available at the right place and right time in the most cost effective manner.
      For this, stockists have been connected through an Internet-based network, called RS Net, for online interaction.
      RS Net is part of Project Leap, HUL's end-to-end supply chain.
    • 57. Distribution Strategy
      Distribution at the Villages
      The company has brought all markets with populations of below 50,000 under one rural sales organisation.
      The team comprises an exclusive sales force and exclusive redistribution stockists.
      The team focuses on building superior availability of products.
      In rural India, the network directly covers about 50,000 villages, reaching 250 million consumers, through 6000 sub-stockists.
      Distribution at the Supermarkets
      HUL has set up a full-scale sales organisation, for this channel to serve modern retailing outlets.
      Product tests and in-store sampling is provided to consumers.
    • 58. Segments of tomorrow: Hair Conditioners
    • 59. Building New Market : Pure it
      Volume market leadership in South India
      >700 towns, 20 states covered
      Increasing penetration through retail presence in <10 L population towns
      More than 400 safe water zones established
      Growing consistently @ > 50%
      More than 7 million lives protected
      Complete protection …`as safe as boiled water’
      Meets US EPA standards
      Works without electricity, pressurized piped water
      Device Rs 2000 ( $40)
      Germkill Battery Rs 350 ($7)
      Rs 0.35 per litre ( < 1 $ cent) (incl. initial price)
      Unique Promotional Campaign
    • 60. Unilever Research and Development Strengths
    • 61. Drive increased execution rigor
    • 62. Enhanced Customer Service
    • 63. Driving cost efficiencies
    • 64. Integrate economic, environment & social objectives with business agenda
    • 65. Thank You