HUL

Dheeraj Tripathi Komal Gadodiya Gaurav Kumar Gaurav Mittal Gautam Vishwakarma

(26) (27) (28) (29) (30)

INTRODUCTION

Hindustan Unilever Limited (HUL) is India's largest fast-moving consumer goods . HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and has an employee strength of over 16,500 employees . and has an annual turnover of around Rs.19, 401 crores .The company was renamed in June 2007 as Hindustan Unilever Limited. HUL is a subsidiary of Unilever, one of the worlds leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about 44 billion in 2011.

INTRODUCTION (CONT...)

HUL's brands touch the lives of two out of three Indians. The mission of 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. With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers. The Company is a part of the everyday life of millions of consumers across India.

HUL- INDIAS LARGEST FMCG COMPANY

Personal wash

Lux, lifebuoy, dove Pears, rexona, breeze,

Laundry

Surf excel Wheel sunlight Fair & lovely Ponds vaseline

Skin care

Hair care
Hindustan unilever ltd

Sunsilk Clinic

Oral care

Pepsodent closeup

Deodorants

Axe rexona

Color cosmetics

lakme

ayurvedic

ayush

Segment

Sub-Segment

HUL Fabric Wash PRODUCT PORTFOLIO

Market Share: 38%

Brand Surf Rin Sunlight Wheel

Comment Patented Technology, Premium Segment Largest Selling detergent bar Unilevers oldest, first brand WB, Kerala Largest Selling Indian detergent First & largest selling dish washer bar Worlds largest selling Soap Global brand Global Brand: Premium, Skin friendly Premium Segment Basic Segment Focuses on young female population South Indian Regional Brand TN Indias largest selling shampoo (D,ND) Global Brand: Premium, Hair friendly Largest beauty shampoo brand Herbal - Doing well in South India Global brand, First mover (1947) Patented Formulation, Asian brand Bought from Tatas, Salon Business Global brand, Monopoly in Indian PetroJelly

Dish Wash
Market Share: 58%

Surface Cleaning

Personal Wash

Household Care Market Share: 52%

Hair care
Market Share: 47%

Vim Domex Lifebuoy Lux Dove Pears Breeze Liril Hamam Clinic Shampoo Dove Sunsilk Ayush Ponds Fair & Lovely Lakme Skin Care

Personal

Skincare

Vaseline

Segment

Sub-Segment Toothpaste
Market Share: 30%

Brand Close-up Pepsodent

Comment Indias first Gel, Youth brand Second largest selling toothpaste

Toothbrush Deodorants Axe, Rexona Colour Cosmetics Lakme Infant Care Huggies Feminine Care Kortex Kissan Knorr Processed Foods Annapurna
Market Share: 32%

Clear leader in deodorant segment Natural Colorants Late entrant - Smaller Player Jam Squeeze, Ketchup Soups & Ready to Cook Salt, Flour

Personal Products

Tea
Market Share: 23%

3 Roses Mindsharp, Taj, Brooke Bond, Lipton Bru

Coffee

Beverages
Food & Beverages Pure-it Ice Cream & Bakery Products Brain Food

Market Share: 45%

Gelato, Quality Walls Amaze Demographic advantage of India Creating new markets Lakme Beauty Salons Moving from products to Services in Premium segments

Beauty and Wellness

Ayush Therapy Centres

Moving from products to Services in Premium segments

HUL PRODUCT PORTFOLIO

Revenue Share
Soaps and Detergents Other Operations 8% Foods (Bakery) 1% Exports 4% Beverages 11% Personal Products 26% Ice Creams 2% Personal Products Beverages Exports Soaps and Detergents Foods (Bakery) 48% Other Operations ( Water etc.) Ice Creams

MARKET SHARE OF FMCG COMPANIES IN INDIA

Market Share %age
Others; 20.2 HUL; 36.4 Dabur; 4.3 Britannia; 6 HUL ITC Nestle Britannia Dabur Others

Nestle; 8.2

ITC; 30.3

MARKET SHARE

HUL FINANCIALS

PORTERS FIVE FORCES

POTENTIAL ENTRANTS
Given the amount of capital investment needed to enter certain segment in house hold consumer products, the threat of new entrant is fairly low. Whether the new entrant can get its products on the shelves of the same retailers as its much larger rivals. Verdict: low threat of new entrants.

THREAT OF SUBSTITUTE

Within the consumer product industry, brand succeeds in helping to build a competitive advantage, but even the pricing power of the brands can be eroded. Verdict: high threat of substitutes.

SUPPLIERS

BUYERS(CUSTOMERS)

Consumer product faces some amount of supplier power simply because of the cost they incur when switching suppliers Suppliers that do a large amount of business with these companies are also beholden to their customers. Verdict: limited supply power

Consumer faces weak buying power because customers are fragmented and have little influence on price or product. Considering buyer power retailers it is very high since they are able to negotiate the price with the companies. Verdict: Strong buyer power from retailers.

RIVALS

Consumers enjoy multitude of choices. It does not cost anything for a consumer to buy one brand of shampoo instead of another, making the industry quite competitive. Verdict:- Very high rivalry within the industry.

SWOT Strengths: Analysis

Strong brand portfolio, price quantity & variety. Innovative Aspects. Presence of Established distribution networks in both urban and rural areas. Solid Base of the company. Corporate Social Responsibility(CSR)

Weaknesses:
"Me-too" products which illegally mimic the labels and brands of the established brands. Strong Competitors & availability of substitute products. Low exports levels. High price of some products.

SWOT Opportunities: Analysis

Large domestic market over a billion populations . Untapped rural market. Changing Lifestyles & Rising income levels, i.e. increasing per capita income of consumers. Export potential and tax & duty benefits for setting exports units.

Threats:

Tax and regulatory structure. Mimic of brands Removal of import restrictions resulting in replacing of domestic brands. Temporary Slowdown in Economy can have an impact on FMCG Industry.

ANSOFF MATRIX: PRODUCTS & BRAND STRATEGIC FRAMEWORK

Existing Products New Products
PRODUCT DEVELOPMENT Knorr, Kisan , Annapurna, Pepsodent, Fair & Lovely, Lifebuoy, Rexona, Sunsilk, Vaseline, Lux, Wheel, Dove, Lakme, Surf Excel, Peers, Clinic all clear, Rin, Liril

Existing markets New markets

PENETRATION Sunlight , Lipton , Hamam, Close Up, Breeze , Ponds

MARKET DEVELOPMENT

DIVERSIFICATION

BCG MATRIX-HUL
Hair Care Skin Care Premium Soaps & Laundry Deodorants Water (PureIt)

Processed foods Colour Cosmetics

Mass Soaps Beverages Oral care Laundry

Sea-food exports

MARKETING STRATEGIES OF

MARKETING STRATEGIES OF HUL FOR URBAN INDIA

Focuses on short supply chain for distribution. To meet the every needs of people everywhere. Also uses Direct selling channel(HUN), franchisee to reach everyone e.g. Aviance, Ayush. Build segments & market for the future where Unilever has strong expertise.

MARKETING STRATEGIES OF HUL FOR term benefits, HUL started Project For long RURAL INDIA
Streamline in 1997. Appointed 6000 Sub-stockists that directly covers about 50,000 villages & 250 million customers. Integrate Economic, Environment & Social objectives with Business agenda. Project Shakti, partnership with Self help groups of Rural women & covers 5000 villages in 52 districts in different states.

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