Hindustan Unilever ltd

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  • HUL plans to grow the retail footprint of the Swirl parlours from 68 to 500 in high footfall areas like malls over the next three to four years.
  • The application is targeted to working women consumers in the age group of 25-35 years
  • Hindustan Unilever ltd

    1. 1. HINDUSTAN UNILEVER LTD.<br />(Food Products)<br />
    2. 2. HINDUSTAN UNILEVER LTD.<br />Vision <br />“To earn the love and respect of India, by making real difference to every Indian.”<br />Mission<br />The mission that inspires HUL is to help people feel good, look good and get more out of life with brands and services that are good for them and good for others.  It is a mission HUL shares with its parent company, Unilever, which holds about 52 % of the equity.<br />
    3. 3. A Brief History<br />HUL touches the lives of two out of every three Indians everyday, with 35 major Indian Brands.<br />India’s largest FMCG Company, formed in 1933 (Lever Brothers India Ltd.) & in 1956, came into being as Hindustan Lever Ltd., through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. & United Traders Ltd.<br />Renamed in June 2007 as Hindustan Unilever Ltd.<br />
    4. 4. HUL at a Glance…<br />
    5. 5. Brands<br />
    6. 6. Brands<br />
    7. 7. Different sectors<br />
    8. 8. HINDUSTAN UNILEVER LTD.<br />Food Products<br />
    9. 9. Managing Food Portfolio<br />
    10. 10. HUL- FINANCIAL ANALYSIS<br />YEARS<br />PARAMETERS<br />
    11. 11. HUL Foods- Sales (2009-10)<br />
    12. 12. HUL Foods – Market Share (2009-10)<br />
    13. 13. Challenges & Strategies <br />The growth in the Foods business has been achieved in the face of some key challenges :<br />High competitive intensity from national as well as local players in many categories. The Company has responded through increased brand investments and value enhancing innovations.<br />A combination of consumer centric value packs and judicious price increases combined with aggressive cost saving programmes, to combat inflation & economic slowdown.<br />Beverages such as Tea and Coffee are well entrenched habits amongst Indian consumers. Company is focusing on micro marketing initiatives to increase penetration and consumption and drive growth across the spectrum. In addition, the Company is driving up gradation through the tea bags packaging concept .<br />Annapurna and Modern range are uniquely positioned to capture the growing consumption in rural areas and capture the opportunity at the bottom of the pyramid.<br />
    14. 14. Challenges & Strategies<br />HUL’s distribution strategy objective is to be in right place at right time in most cost effective manner.<br />HUL's products, are distributed through a network of about 7,000 redistribution stockists covering about one million retail outlets.<br />The general trade comprises grocery stores, chemists, wholesale, kiosks and general stores.<br />Hindustan Unilever Network (HUN): it is the company's arm in the Direct Selling channel. It presents a range of customised offerings in Home & Personal Care and Foods.<br />
    15. 15. Challenges & Strategies<br />Out-of-Home : this deals in providing vending machines for hot beverages like tea and coffee. HUL’s alliance with Pepsi Co. has significantly strengthened the channel. HUL, which sells Knorr soup, Bru coffee and Taj and Lipton tea through its machines, maintains that the BPO/ITeS industry is an attractive segment for its out-of-home business.<br />Apart from the conventional distribution HUL also encourages Innovative DC. Examples : Economic development through micro enterprise Pioneering new channels, Project Shakti : HUL's partnership with Self Help Groups of rural women. Started in 2001, Project Shakti has already been extended to about 50,000 villages in 12 states - Andhra Pradesh, Karnataka, Gujarat and others.<br />
    16. 16. HUL- SWOT ANALYSIS<br />WEAKNESSES:<br /><ul><li> High costs (Advertising and promotional expenses of the company rose by a third during the June 2010 quarter to Rs750 crore )</li></ul>STRENGTHS :<br /><ul><li> Strong Parentage & R & D.
    17. 17. Strong position in most categories.
    18. 18. Unmatched Distribution Network.
    19. 19. Presence across all Price points.</li></ul>OPPORTUNITIES :<br /><ul><li> Large Domestic Rural Market
    20. 20. Pyramidal Customer base is changing & diamond shape customer base is evolving- Large middle class.
    21. 21. New category Openings- Medicines, Biscuits etc.</li></ul>THREATS:<br /><ul><li>Loosing Market share in most categories ( high competition).
    22. 22. Food price inflation & economic slowdown.
    23. 23. Local Players set to mimic major brands.</li></li></ul><li>4 P’s of<br />MARKETING<br />
    24. 24. PRODUCT<br />
    25. 25. PROMOTION<br />BEVERAGES : LIPTON<br />Lipton is painting the world yellow with the marketing campaign that represents all that Lipton stands for ,brightness, vitality and with natural goodness and the represents the energy it gives.<br />It is targeted towards all the tea lovers (basically youth) who do not mind paying a little extra for the best of the teas. <br />
    26. 26. Innovative Promotional Campaigns of Lipton<br />As the consumers are becoming more conscious about their health and wellness so they introduced lipton in different flavourssuch as Camomile, Hibiscus, Green Tea etc.<br />Lipton Yellow Label Tea announced the entry of it's Jigsaw Puzzle into the World Record Books for being 'The World's Largest Online Collaborated Jigsaw Challenge' available on the online space. Since the tea helps to clear your mind and remain sharp, thus, the event was a promotional strategy for the same.<br />
    27. 27. As part of Lipton tea’s drive to capture the booming market for ready-to-drink teas, the Anglo-Dutch Unilever Company entered into a joint agreement with American PepsiCo in 2003.<br />Through the joint venture agreement, PepsiCo distributes or markets Lipton tea products. It has two main goals: to move the Lipton brand into new distribution channels and to move into new markets. <br />
    28. 28. They also entered in OOH (Out of Home) business by setting up ‘experiential kiosks’ under the Lipton brand. Graduating from its existing vending machines, almost 50 such kiosks are planned this year which it would set up at corporate parks, railway stations and airports . New experiential kiosks would serve mocktails and heath oriented beverages made from HUL’s beverage brands.<br />Lipton Rocket Man – trial generation of new variant of Lipton flavored tea Target: Largely targeted towards youngsters, who are fun-loving and are excited by something new and techy. Execution: Brand ambassadors on rollerblades offering Lipton flavored tea in three flavors from their backpacks. Objective: Generate Trial, associating with the youth, creating brand awareness<br />
    29. 29. PROMOTION<br />BEVERAGES : BROOKE BOND BRU<br />Unilever's only Coffee brand.<br />Enjoys a rich heritage, came into existence in 1962 under the brand name Deluxe Green Label<br />Consistently offering better and newer products to the consumer through improved packaging solutions and innovative product formats<br />Enjoys a strong presence at various out of home locations.<br />
    30. 30. Innovative Promotional Campaigns of Bru<br />Prior to 2004, HUL had many brands in the coffee category like Deluxe Green Label and Bru instant as the main brands and small brands like Dilkush, Cafe and Cafe Gold etc but as a part of the power brand strategy, HUL decided to phase out Dilkush and Cafe brands. It then consolidated the coffee brands under the master brand Bru.<br />Bru before becoming the family brand (prior 2004) was positioned as a coffee that tasted just like filter coffee. But after the elevation to master brand, Bru took the positioning around happiness.<br />
    31. 31. Innovative Promotional Campaigns of Bru<br />Some of the commercials that came up was <br />The theme revolve around the shy girl wanting to introduce her boyfriend Sagar to her father.<br />‘Little cup’ to tell the ‘good news’.<br />Tamil adds related to starting marriage procedure to the day of marriage targeting the south indian people.<br />BRU “Just Go With Your Saathiya” Contest (2002-03) With a well designed float and highly interactive games / contest on float based on relationships this activity got excellent crowd participation all the way!! BRU coffee was promoted with the activities on ground.<br />
    32. 32.
    33. 33. PROMOTION<br />BEVERAGES : BROOKE BOND RED LABEL<br />Promotion Started with ’ChuskiyaanZindagiki’ <br /> Journey went on to ‘Swastrahe Mast rahe’<br />Now concentrates on the healthy reasons to drink tea.<br />Red Label is for the housewife who seeks to bring her family together over a cup of great Red Label with its perfect strength taste and colour...<br />It has both leaf and dust variants, as well as a health and immunity variant - Red Label Natural Care. Red has also launched a premium variant under the name ‘Red Special’.<br />
    34. 34. PROMOTION<br />Only recently it has launched Red Label Sehatmand to foray into the Nutritional Tea segment targeting towards the masses.<br />Red Label holds the Guinness Record for the world’s largest tea party.<br />For its Re-launch the company has chosen AnupamKheras the brand ambassador. He endorses healthy habits and diet which fits in with Red Label brand positioning.<br />
    35. 35. PROMOTION<br />BEVERAGES : BROOKE BOND 3 ROSES<br />Brooke Bond 3 Roses Natural Care has been introduced in the Andhra Pradesh and Tamil Nadu markets. <br />The target for the beverage will be families that seek wellness in their lives.<br />The communication for the launch will be through extensive television, print, radio and outdoor advertising, and on ground wet sampling exercises.<br />
    36. 36. Innovative Promotional Campaigns of Brooke Bond 3 Roses<br />In Sep 2010, HUL began a Brooke Bond 3-Roses sampling campaign in six districts of Tamil Nadu. It centered around traditional weddings. All guests at weddings were given a sachet of 3-Roses with the Tambula bag — a return gift consisting of coconuts, sweets, and so on. And as a gift to the bride and bridegroom, HUL offered three months’ worth free samples.<br />In 2010, Brooke Bond launched the Brooke Bond Tea Council in Mumbai recently. As part of the initiative, Brooke Bond Tea Council unveiled a health paper on tea, detailing the findings of the Brooke Bond White Paper Study, as well as tea’s history and its proven health benefits. <br />
    37. 37. PROMOTION<br />BEVERAGES : BROOKE BOND TAJ MAHAL<br />Theme of the Brand : TajMahal is not just a cup of tea, it is a sensory experience.<br />It was the first brand to launch tea bags and is the only tea brand in India to be sold in vacuum sealed packs.<br />They claim that their master blenders and tasters select the finest teas to create a robust, full-bodied brew with a lingering aroma that makes you say ….. “WahTaj”.<br />
    38. 38. TAJ MAHAL’s Communication Strategy Over the years<br />
    39. 39. Innovative Promotional Campaign of Brooke Bond TajMahal<br />The Taj Tea Trail is an hour long tea tasting and appreciation workshop . The members can :<br />Sample various teas in a guided tea tasting <br />Learn the art of making the perfect cup<br />Become a certified Tea connoisseur<br />Enjoy traditional tea-time snacks<br />Brooke Bond TajMahal in association with the Enlighten Film Society has come up with Taj Enlighten Tareef Awards to fecilitate excellence in cinema.<br />
    40. 40. PROMOTION<br />SPREADS & DRESSINGS : KISSAN<br /><ul><li>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.
    41. 41. The main target segment for the brand is the growing kids and the positioning is: ‘deliciously wholesome products for kids to grow up’.</li></li></ul><li>Promotional Campaigns for Kissan<br />It has come out with an innovativesqueezy package for the Ketchup & Jams which have become very popular.<br />Kissan even used RahulDravidto endorse the brand, who was an icon at the time.<br />The brand also has came out with Low calorie jam to appeal to the health conscious crowd.<br />
    42. 42. PROMOTION<br />ICE-CREAM : KWALITY WALL’S<br />Of late the brand is targeting mainly the youth. Kwality Wall’s brands intended positioning is ‘The Pleasure Food’ and most ads use the emotional appeal of ‘Love’ to get the message to the consumer. The ‘Love’ theme is also evident also in the heart sign in the brand’s logo<br />Keeping in mind local flavors, Hindustan Unilever has come out with ice cream in litchi and coconut flavours at different price points.<br />Meanwhile, HUL has segmented the market in to three categories: Kids, teenagers and families. So, there is the Paddle Pop range for kids, Cornetto for teenagers and Red Tub for families. <br />For Health Conscious People- Selection range which comes with just 99 calories in 80 ml.<br />
    43. 43. Innovative Promotional Campaigns of Kwality Wall’s<br />Cornetto's summer campaign; the "Scratch and Win" promotion rewards consumers for enjoying their Cornettos and also win great prizes. To make this happen Oxigen Services India Pvt. Ltd. Came together with HUL to enable consumers to win talk time amounts.<br />HUL wants to have a play across the entire ice creams pyramid and has its Swirl parlours at the upper-end to take on competition in the artisanal ice cream segment. The Swirl chain was started in 2004-05. The parlours do not sell the Kwality Walls range but create mixes like Cornetto Swirl which tie in with the mother brand.<br />
    44. 44. Innovative Promotional Campaigns of Kwality Wall’s<br />Kwality Walls “MujhseDostiKaroge” Carnival (2002)<br />Kwality Walls with their famous tag line “Dil ka connection”…….YRF movie MujsheDostiKaroge based on friendship and the occasion…. Friendship Day!!!<br />Kwality Wall’s has made substantial efforts to gain favourable reputation with buyers through its frequent promotional campaigns- Free Cone Days, donation to social causes & use of eco-friendly products .<br />
    45. 45. PROMOTION<br />SOUPS & MEAL MAKER : KNORR<br />The key theme of the brand is: ‘chefmanship and recipe expertise’ and its intended positioning is: ‘innovation and partnering with the consumer in the creation of great dishes’<br />The ads of the brand mainly focus on the functional attributes which is evident from this tagline: ‘NayaKnorr Soup, AsliSabzion Ka Zadoo’. In the similar lines very recently launched Knorr Meal Makers also stresses of functional attribute: ‘Ready to Cook’.<br />
    46. 46. Knorr’s Promotion Over the Years<br />
    47. 47. Recent Marketing campaign of Knorr<br />In September 2010, the Knorr brand started an outdoor campaign across colleges, popular hangouts, residential and commercial areas called “Snack on Wheels” to promote its soups and soupy noodles. The campaign was carried out through a mobile unit, which facilitated sampling and selling of soups and soupy noodles on the spot.<br />In Sep 2010 ,Women commuters in suburban Mumbai had Hindustan Unilever representatives serving out freshly cooked food prepared with Knorr Ready to Cook spice mixes.<br />
    48. 48. PROMOTION<br />STAPLES : ANNAPURNA<br /> Products offered under the brand are: salt and atta (wheat flour)<br />The products under the brand mainly focus mainly on functional attributes: Annapurna salt stress on its Iodine content and Annapurna Atta stresses on its extra Iron and Vitamins and resulting benefits.<br />A famous tagline of Annapurna atta was: ‘Extra jokissibhiaurattemeinnahi’<br />Target Market : Indian Families<br />
    49. 49. Innovative Promotional Campaign of Annapurna<br />To raise awareness on the benefits of low sodium salt, Annapurna has partnered with TELiBrahma and launched the Annapurna ZindaDil mobile application that features heart age tool, Tips, Contests, Refer a Friend and many more. A 3 month campaign-July 15 2010 – October 15, 2010.<br />
    50. 50. PROMOTION<br />STAPLES : MODERN BREAD<br />Tagline : ‘Happy Starts & Good Times’<br />Modern became a part of HUL’s foods division in 2006.<br />Modern was the first to launch an atta bread.<br />Another innovation from its bakeries is the ‘7 Must’ bread, being marketed as a healthier bread.<br />
    51. 51. PRICE<br />Low Cost/Cheap Products: This is a common strategy widely adopted by manufacturing and marketing concerns wherein the price can be kept low by low unit packing like paisa pack of tea, Kissan Jam sachets, etc. <br />Product from pricing: Different versions of product are priced differently but not proportionately to their respective costs. <br />Eg: Beverages are offered in different sizes and packs. The unit price differs. New Lipton Tazgi tea is available in 50 gms (Rs. 7.50), 100 gms (Rs. 14.50), 250 gms (Rs. 42) and 500 gms (Rs. 84). <br />
    52. 52. 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. <br />Customer -Segment Based Pricing: HUL focuses on pricing its products according to different customer-segments. For e.g. Brooke bond Sehatmand for the lower-middle class and TajMahal for the upper-middle class or the rich people, i.e. for its premium customers.<br />

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