Hindustan Lever Limited (HLL) faces business challenges in India's detergent industry from new entrants and changing customer needs. HLL implemented strategies like modifying its business model to target rural customers, using innovative distribution methods, and training employees. HLL also launched brands in different price segments to counter competitors. A SWOT analysis found HLL's strengths are its large distribution network and brand portfolio, while weaknesses include a wide portfolio that is difficult to manage. Opportunities exist in further tapping the rural market and shifting customer preferences. Threats come from industry clutter and competition.

1. CASE STUDY
Designing A Sales Organization For Hindustan
Lever Limited
Presented By:
Group 10

2. Content
 Introduction
 Industry Overview
 Competitor’s Analysis
 Business Challenges
 Strategies Implemented
 SWOT Analysis

3. Introduction
 HLL is the Indian subsidiary company
of Unilever
 It caters to 20 different customer
categories
 Combined sales volume 4 million
tonnes/year
 Sales revenue of Rs10000 Cr/year
 Huge manpower of 32400
 One of the largest exporters of the
country

4. Industry Overview
Entry of
NIRMA
19801960 1970 1990
Entry of
P&G
Dominance
of HLL
2000

5. Industry Overview
 Pre Wash
 Concentrate or
ordinary powder
form
 Bars or cakes
 Liquids
 Post Wash
 Fabric
whitener/blue
 Bleach
 Starch
 Fabric softener
Two types of product categories (based on
time of use)

6. Industry Overview
2%
14%
84%
Price segmentation of detergents
Premium
Popular
Economy

7. Competitor’s Analysis
 Premium category
 High price segment
 Targeting the upper-middle & upper
class
 Marketed as premium product for
housewives

8. Competitor’s Analysis
 Economy category
 Mid price segment
 To answer Ariel supersoaker

9. Competitor’s Analysis
 Popular segment
 Lower price segment
 Launch to counter Nirma
 Targeted at mass market, lower-
middle and middle class

10. Business Challenges
 Threat from new entrants like Nirma
and P&G
 Rural penetration
 Establishing efficient supply model
 Building better distribution channels
 Catering to the changing needs of the
target customers
 Managing the wide portfolio

11. Strategies Implemented
 Given importance to product
innovation and process innovation
 Modified business model to target
rural customers
 Implementation of IT enabled system
for managing supply and distribution
 Innovative methods like Indirect
coverage, operation harvest, cinema
van operations used

12. Strategies Implemented
 Path breaking ideas like Project
Streamline and Project Shakti were
implemented

13. Strategies Implemented
 Proper training were given to the
employee, thus ensuring skilled
workforce
 Most important was the brand
liberating strategy, which enabled
them to focus more on revenue
generating brands

14. SWOT
 Strengths
◦ Formidable distribution network-3400
distributors and 16 million outlets
◦ Presence in all the price segment
 Weakness
◦ Wide portfolio making it difficult to give
proper attention to brands

15. SWOT
 Opportunities
◦ Rural market not tapped to its full potential
◦ Price sensitive market is drifting towards
more of a quality centric market
 Threats
◦ Highly cluttered market
◦ Increasing competition from the small
players

16. THANK YOU …