HINDUSTAN UNILEVER PRICING POLICY

The company is the leader in consumer goods industry with many brands under its umbrella.
Hindustan Unilever believes in products that are consumer friendly as this generates huge
amount of sales.

Simple Pricing Policy- HUL maintains level of quality for all its products and follows a low
pricing strategy over its family friendly products. For example, sun silk sachets are being
sold for Re. 1, so that product reaches a wider market.

Competitive Pricing Policy- HUL has maintained competitive pricing policy for some of its
products. Competitive pricing policy is setting the price of the product based on competition
of that product. This policy is used when two companies produce the similar kind of
products. As soon as increase or decrease in the competition of the product, price is charged
on the base of competition. For example, AXE, Park Avenue and FOGG all come under 170-
190 pricing range.

Brand Offers- HUL is a wide consumer goods producer, so it tries to offers a variety of

products under a single brand at numerous prices. For example, their personal care, home
care and food and beverage brands offer different varieties of products.

Discount Offer- Now a day’s consumers are given the more importance to discount before
purchasing any product they first see where discount is available. In HUL tries to maintained
balance of the market in the name of discount, they offer discount for their products, for
example 200gm of surf excel free with one kg of that products. So, it automatically reduced
price of the product and consumer are eager to buy the product at discount rate so sale will
increase.
Targets Consumers of All Income Groups- HUL adopted pricing strategy it is suitable to
all income group of people. For example, for low income group of people, HUL produces
small units of products like lifebuoy soap and comfort fabric conditioner at Rs. 5.
Offers Volume point to Price point Packages- Majority of Indian consumers are price
sensitive and they expect value for money, if they buy any product, they expect satisfaction
from that product. They purchase small units of the product because for their income level or
family condition. So HUL offers small quantity of products with a reasonable price so it
attracts different consumers towards their products. They are purchasing the small units of
that product but they are regular customers of those products.

Create markets for premium products- premium pricing strategy is a setting price of the
products higher than the similar products. It increases the maximum profit in are where the
consumers are happy to pay higher prices, HUL created market for a premium product for
urban people HUL decided to produce huge unit of product at a high price because they can
pay more for their satisfaction. For the rural consumer, it is offering sachets so they can
purchase what they want at reasonable prices. For example, lux soap at Rs 5. and ponds gold
cream at Rs 5 etc.