this presentation contains information about HUL and HLN, clear information about HLL and who all companies having direct network

1. HINDUSTAN LEVER’S FORAY INTO NETWORK MARKETING
PRESENTED BY:
Harsha Kommisetty

2. INTRODUCTION
• Unilever is a Worldwide Leader in Consumer Goods
• HLL is Now Known As Hindustan Unilever Limited (HUL)
• We will Discuss the Foray of HLL Into Network Marketing
• Comparisons with Other Multi-level Marketing Brands

3. HLL & HLN
• India's Largest Fast Moving Consumer Goods Company
• HLL is also One of the Country's Largest Exporters
• Meets Everyday Needs for Nutrition, Hygiene, and
Personal Care with Brands that Help People Feel Good,
Look Good and Get More Out of Life

5. WHAT IS NETWORK MARKETING
• It is a method of marketing that utilizes independent representatives
to reach potential customers.
• Network marketing is also known as Multi Level Marketing, Direct
Selling, Referral Marketing, and Pyramid Selling.
• Direct selling is a home based business with almost
negligible investment and one can earn income just by investing few
hours.

6. NETWORK MARKETING IN INDIA
• Direct Marketing Industry - Estimated to Be Worth More Than Rs.15
Billion as of Early 2003
• Direct Marketing Industry in India - Growth Rate of 25%
• Some of the Direct-Selling Companies in India are Eureka Forbes,
Tupperware, Amway India, etc.
• Direct Selling Companies Generally Deal in Daily-Use Products
Ranging From Cosmetics, Personal Hygiene ,HealthCare and
Kitchenware.

7. HINDUSTAN LEVER NETWORK
• HLL Entered the Direct Marketing Scene in 1999 under the Brand
Name “Aviance”
• Aviance Focused On Personal Care Products
• Women Acted as Consultants For It
• Though Aviance was was not a roaring success in absolute sales In
number it layed the foundation for HLN which was launched on
January 27th 2003.

8. • “Lever Home” Was Another Direct Marketing Brand of HLN
which included kitchen care, home care & laundry care
products.
• Through Value Added Services like Expert Advice and Home
Delivery HLN became Most Preferred Network Company

9. COMPARISON OF HLL WITH
AMWAY
The only real upside to this particular MLM is that there is no joining
fee to become a member – simply a screening process to make sure
that you’re the "right type" of candidate is carried out.
BUT to become the member of HLL one has to purchase from HULN's
wide range of products for a minimum of Rs 600 and then fill the
application form provided.

11. MARKETING MIX

12. PRODUCT -
• 175-200 High-Quality, High-Performance Products Were Sold
• Started Out With Personal Care Products
• Later Forayed Into Kitchen Care, Home Care, and Laundry Care Products Under
the Brand Lever Home
PRICE -
• Consultants Could Buy Products at 20% Lesser Rates Than the Original
Prices
• The Prices Were Justified For All type of customers in Society

13. PLACE –
• From a coverage of 400 Cities in the Initial Year, HLN Targeted Reaching 1500
Cities in Two Years
• Targeted the Urban Market in the Initial Phase
PROMOTION –
• Less Of Advertising
• Branding and Advertising Done By Consultants Who Acted as Brand
Ambassadors as Well as Salespersons

15. STRENGTHS –
• HLN Model Focused on Building Male and Female
• New Products In Different Categories Every Two Months
• Extensive Training Programs For Its Consultants
• Less Budget on Advertising as Consultants Acted as Brand Ambassadors
• Gained a Lot of Popularity Amongst the Woman Consumers
WEAKNESSES –
• Consultants(frequently changing)
• Minimal Advertising

16. OPPORTUNITIES –
• Large market size
THREATS –
• Other Direct Marketing Firms Like Amway, Modicare, Avon Beauty Products

17. PROBLEMS FACED BY HLL:-
• Being a distributor or a salesperson in a multi-level marketing
organization did not translate into job security. A significant
percentage who joined in the initial frenzy returned the product kits
within the first few months
• Problem of minimal advertising strategies‘ that most MLM companies
followed. This made buying decision more complex
• The issue of distributers buying product only for self consumption,
the rate was 50-60% of total volume traded.

18. Will Hindustan Lever Network become a
success story