This action might not be possible to undo. Are you sure you want to continue?
Introduction on green marketing
Introduction to hul
Green marketing in hul
Present marketing strategy of hul
Conclusions and Suggestions
1. Introduction on Green marketing
According to the American Marketing Association Green Marketing Is the marketing of products that are presumed to be environmentally safe. Thus green marketing incorporates broad range of activities, including Product modification, Changes to the production process, Packaging changes, as well as Modifying advertising. Green Marketing Refers to the process of selling products and/or services based on their environmental benefits. Such a product or service may be environmentally friendly in it or produced and/or packaged in an environmentally friendly way. As per Mr. J. Polonsky, Green Marketing can be defined as, "All activities designed to generate and facilitate any exchange intended to satisfy human needs or wants such that satisfying of these needs and wants occur with minimal detrimental input on the national environment."Green Marketing involves developing and promoting products and services that satisfy customers want and need for Quality, Performance, Affordable Pricing and Convenience without having a detrimental input on the environment. Goals of Green Marketing: Eliminate the concept of waste Reinvent the concept of product Make prices reflect actual and environmental costs Make environmentalism profitable Bringing out product modifications
Changing in production processes Packaging changes Modifying advertising
*Sources: [Peattie, K. (1995), Environmental Marketing Management, p.26] The many meaning of term green Yet defining green marketing is not a simple task where several meanings intersect and contradict each other; an example of this will be the existence of varying social, environmental and retail definitions attached to this term. Other similar terms used are Environmental Marketing and Ecological Marketing. The legal implications of marketing claims call for caution. Misleading or overstated claims can lead to regulatory or civil challenges. In the USA, the Federal Trade Commission provides some guidance on environmental marketing claims. So, in simple terms Green marketing refers to the process of selling products and/or services based on their environmental benefits. Such a product or service may be environmentally friendly in it or produced and/or packaged in an environmentally friendly way. The obvious assumption of green marketing is that potential consumers will view a product or service's "greenness" as a benefit and base their buying decision accordingly. Green marketers though argue that it is a way to use the environmental benefits of a product or service to promote sales. Many consumers will choose products that do not damage the
environment over less environmentally friendly products, even if they cost more. With green marketing, advertisers focus on environmental benefits to sell products such as biodegradable diapers, energy-efficient light bulbs, and environmentally safe detergents. People buy billions of dollars worth of goods and services every year—many which harm the environment in how they are harvested, made, or used. Environmentalists support green marketing to encourage people to use environmentally preferable alternatives, and to offer incentives to manufacturers that develop more environmentally beneficial products.
members of the community. (author of Green Marketing: Opportunity for Innovation) from an organizational standpoint. including educators. this became known as the Brundtland Report and was another step towards widespread thinking on sustainability in everyday activity. According to Jacquelyn Ottman. Corporate Social Responsibility (CSR) Reports started with the ice cream seller Ben & Jerry's where the financial report was supplemented by greater view on the company's environmental impact. While public opinion polls taken since the late1980s have shown consistently that a significant 5 .But the idea did not catch on until the 1980s. They were by Ken Peattie (1992) in the United Kingdom and by Jacquelyn Ottman (1993) in the United States of America. Manufacturers responded to public interest by labeling hundreds of new products "environmentally friendly"—making claims that products were biodegradable. when rising public interest in the environment led to a demand for more green products and services.The American Marketing Association (AMA) held the first workshop on ―Ecological Marketing" in 1975. In 1987 a document prepared by the World Commission on Environment and Development defined sustainable development as meeting ―the needs of the present without compromising the ability of future generations to meet their own need‖. Environmental issues should be balanced with primary customer needs. energy efficient. The holistic nature of green also suggests that besides suppliers and retailers new stakeholders be enlisted. environmental considerations should be integrated into all aspects of marketing — new product development and communications and all points in between. The past decade has shown that harnessing consumer power to effect positive environmental change is far easier said than done. both of which were called Green Marketing. or the like.S. The proceedings of this workshop resulted in one of the first books on green marketing entitled "Ecological Marketing". regulators. and other countries have struggled to reach critical mass and to remain in the forefront of shoppers' minds. The first wave of Green Marketing occurred in the 1980s. compostable. The term Green Marketing came into prominence in the late 1980sand early 1990s. and NGOs. The so-called "green consumer ―Movements in the U.1 BIRTH OF GREEN MARKETING The concept of green marketing has been around at least since the first Earth Day in 1970.1. Two tangible milestones for wave 1 of green marketing came in the form of published books.
because companies are often reluctant to promote their green attributes. One of green marketing's challenges is the lack of standards or public consensus about what constitutes "green. This lack of consensus—by consumers. which take care of pollution and waste issues. and consumers are often skeptical about claims. It came into prominence in the late 1990s and early 2000. consumers' efforts to do so in real life have remained sketchy at best. Despite these challenges. activists. regulators. particularly in light of growing global concern about climate change. and elsewhere profess a strong willingness to favor environmentally conscious products and companies. a writer on green marketing.S. 6 .percentage of consumers in the U. First phase was termed as" Ecological "green marketing." according to Joel Makeover. Third phase was" Sustainable ―green marketing. marketers. and during this period all marketing activities were concerned to help environment problems and provide remedies for environmental problems. green marketing has continued to gain adherents. and the effect this is having on their products and services. The green marketing has evolved over a period of time. This concern has led more companies to advertise their commitment to reduce their climate impacts. and influential people—has slowed the growth of green products. In essence. the evolution of green marketing has three phases. says Makeover. According to Peat tie (2001). Second phase was" Environmental "green marketing and the focus shifted on clean technology that involved designing of innovative new products. there is no definition of "how good is good enough" when it comes to a product or company making green marketing claims.
The Surf Excel detergent which saves water (advertised with the message— "do bucket paani roz bachana"). Every person rich or poor would be interested in quality life with full of health and vigour and so would the corporate class. So green marketing by the business class is still in the selfish anthological perspective of long term sustainable business and to please the consumer and obtain the sanction license by the governing body. many firms see these changes as an opportunity to be exploited and have a competitive advantage over firms marketing nonenvironmentally responsible alternatives. Financial gain and economic profit is the main aim of any corporate business. But harm to environment cost by sustain business across the globe is realized now though off late. Opportunities or competitive advantage 2.They is: 1.2 NEED OF GREEN MARKETING WHY IS GREEN MARKETING CHOSEN BY MOST MARKETERS? Most of the companies are venturing into green marketing because of the following reasons: Issues like Global warming and depletion of ozone umbrella are important for the healthy survival. in an attempt to better satisfy their consumer needs are: McDonald‘s replaced its clam shell packaging with waxed paper because of increased consumer concern relating to polystyrene production and Ozone depletion.As demands change.1. Competitive pressure 5. Some examples of firms who have strived to become more environmentally responsible. Cost or profit issues 1) OPPORTUNITIES . Industries in Asian countries are catching the need of green marketing from the developed countries but still there is a wide gap between their understanding and implementation. This sense is building corporate citizenship in the business class. Green marketing has been widely adopted by the firms worldwide and the following are the possible reasons cited for this wide adoption. There are basically five reasons for which a marketer should go for the adoption of green marketing. Government pressure 4. Corporate social responsibilities (CSR) 3.The energy-saving LG consumers durables are examples 7 .
They have invested large sums of money in various recycling activities. water and construction materials. This results in environmental issues being integrated into the firm's corporate culture.Many firms are beginning to realize that they are members of the wider community and therefore must behave in an environmentally responsible fashion. India's green building footprint is now over 25 million sq ft. 2) CORPOPRATE SOCIAL RESPONSIBILITY . Thus many consumers may not realize that Coke is a very environmentally committed organization. Coke has not used this concern as a marketing tool. rather than simply being a competitive tool. Xerox introduced a "high quality" recycled photocopier paper in an attempt to satisfy the demands of firms for less environmentally harmful products. spearheaded by the Confederation of Indian industry (CII) -Godrej Green business Center. maintenance and waste disposal. An example of a firm that does not promote its environmental initiatives is Coca-Cola. This philosophy is directly tied to the overall corporate culture. While being concerned about the environment. and which reduce the impact on human health and the environment through better design. From 20.000 sq ft in 2003. There are examples of firms adopting both strategies. Britain based HSBC became the world‘s first bank to go carbon neutral late last year and is now turning its 11000 buildings in 76countries worldwide into models of energy efficiency. This translates into firms that believe they must achieve environmental objectives as well as profit related objectives. Fund managers and corporate developers too. are taking into account the environmental viability of the company they invest in Venture Capitalists are investing in green business because they believe it's a growth opportunity. as well as having modified their packaging to minimize its environmental impact. Organizations like the Body Shop heavily promote the fact that they are environmentally responsible. We also have green buildings which are efficient in their use of energy.of green marketing. Another firm who is very environmentally responsible but does not promote this fact. Tesco‘s community director. In India. operation." our customers have told us that they decide where they shop based on whether the business is a good neighbor . has gained tremendous impetus over the last few years."Says David North. the green building movement. construction. at 8 . the firm was established specifically to offer consumers environmentally responsible alternatives to conventional cosmetic products. While this behavior is a competitive advantage.
etc. yet these facilities are not highlighted in their general tourist promotional activities. These regulations include the Australian Trade Practices Commission‘s (TPC) "Environmental Claims in Marketing . the India's capital was getting polluted gradually at a very fast pace till Supreme Court of India forced a change of fuel on it. governments want to "protect" consumers and society. this protection has significant green marketing implications. Governments establish regulations designed to control the amount of hazardous wastes produced by firms. For example New Delhi. The ban of plastic bags in Mumbai. One of the more recent publicized environmental regulations undertaken by governments has been the establishment of guidelines designed to "control" green marketing claims. is Walt Disney World (WDW).A Guideline . a directive was issued to completely adopt CNG in all public transport systems to curb pollution. In 2002. 3) GOVERNMENT PRESSURE – As with all marketing related activities.least outside the organization. Governmental regulations relating to environmental marketing are designed to protect consumers in several ways. prohibition of smoking in public areas. They are: Reduce production of harmful goods or by-products Modify consumer and industry's use and/or consumption of harmful goods Ensure that all types of consumers have the ability to evaluate the environmental composition of goods. the US Federal Trade Commission's (FTC) "Guides for the Use of Environmental Marketing Claims" and the regulations suggested by the National Association of Attorneys-General . 4) COMPETITIVE PRESSURE – Another major force in the environmental marketing area has been firms' desire to maintain their competitive position.These regulations are all designed to ensure consumers have the appropriate information which would enable them to evaluate firm's environmental claims. WDW has an extensive waste management program and infrastructure in place. In many 9 .
One Australian example of this is a firm who produces acidic waste water as a by-product of production and sells it to a firm involved in neutralizing base materials. it could be argued that Xerox's "Revive 100% Recycled paper" was introduced a few years ago in an attempt to address the introduction of recycled photocopier paper by other manufacturers. where one firm‘s waste becomes another firm's input of production. This serves as a double cost savings. In another example when one tuna manufacture stopped using driftnets the others followed suit. In these cases they often develop more effective production processes that not only reduce waste. instead of minimizing waste. many firms develop symbiotic relationship whereby the waste generated by one company is used by another as a cost-effective raw material. is used to manufacture fly ash bricks for construction purposes. In other cases firms attempt to find end . Therefore firms that can reduce harmful wastes may incur substantial cost savings. In these situations firms try to find markets or uses for their waste materials. Sometimes. For example.pipe solutions.cases firms observe competitors promoting their environmental behaviors and attempt to emulate this behavior. but reduce the need for some raw materials. since both waste and raw material are reduced. firms are often forced to re-examine their production processes. the fly ash generated by thermal power plants. In some instances this competitive pressure has caused an entire industry to modify and thus reduce its detrimental environmental behavior. which would otherwise contributed to a gigantic quantum of solid waste. 10 . When attempting to minimize waste. 5) COST OR PROFIT ISSUES – Reduction of harmful waste may lead to substantial cost savings. Disposing of environmentally harmful by-products.of . Firms may also use green marketing in an attempt to address cost or profit related issues. such as polychlorinated biphenyl (PCB) contaminated oil are becoming increasingly costly and in some cases difficult. For example.
that the terminology and interpretation remains consistent. E: Explores the context from which market research data comes. ‗green‘ and‘ conservation‘ do not always translate precisely between languages. Ensure that when you pose questions to consumers. the questions asked. N: Neutrality is important. R: Remembers. the way in which responses were recorded and the time and place from which the responses come. that they can make any response without being made to feel guilty or uncomfortable. the validity of a piece of market research is not related to the degree to which it supports your preferred option. Consumer behavior will not necessarily be consistent across different product types. 11 . and ensure that your own preconceptions about the green agenda (such as an assumption that green products will cost extra) are not encoded within the questions. and particular market segments may respond to certain issues on the green agenda but not others. E: Ensures that where market research is crossing international borderlines.1. Terms like ‗environment‘.3 GREEN CODE G: Generalizes with care. Be clear on the nature of the sample used.
Organic butchers. for example.1. Price Mix 3. Products that can be recycled or reused. Place Mix & 4. energy or gasoline. The increasingly wide variety of products on the market that support sustainable developments are: Products made from recycled goods. Products with green labels. Certified products. it is vital to ensure that products meet or exceed the quality expectation of customers and is thoroughly tested. 12 . such as Quick‘ N Tuff housing materials made from recycled broccoli boxes. changed their packaging from polystyrene clamshells to paper. Product Mix 2. which meet or exceed environmentally responsible criteria. for example. Efficient products. Promotion Mix 1) PRODUCT MIX: Entrepreneurs wanting to exploit emerging green markets either: Identify customers‘ environmental needs and develop products to address these needs or will develop environmentally responsible products to have less impact than competitors.4 GREEN MARKETING MIX Green Marketing mix consists of following: 1. as long as they offer substantiation. Organic products-many customers are prepared to pay a premium for organic products. promote the added qualities such as taste and tenderness. which save water. A service that rents or loans products-toy libraries Whatever the product or service. McDonalds. Products with environmentally responsible packaging. save money and reduce environmental impact. which offer promise of quality.
however are often less expensive when product lifecycle coast are taken into consideration. public relations. The location must also be consistent with the image you want to project and allow you to project your own image rather than being dominated or compromised by the image of venue. e-marketing is rapidly replacing more traditional marketing methods and printed materials can be produced using recycled materials and efficient processes such as waterless printing. Marketers looking to successfully introduce new green products should position them broadly in the market place so they are not just appealing to a small green niche market. visual appeal or taste. The location must differentiate you from the competitors. for example are recognizing the value of alliances with other companies. This can be achieved by in-store promotions and visually appealing displays or using recycled materials to emphasize the environmental and other benefits.2) PRICE MIX: Pricing is the critical element of the marketing mix. Environmentally responsible products. For example. 3) PLACE MIX: The choice of where and when to make products available will have significant impact on the customers you attract. 4) PROMOTION MIX: Promoting products and services to target markets include paid advertising. Smart green Marketers will be able to reinforce environmental credibility by using sustainable marketing and communication tools and practices. This value may be improved performance. Environmental benefits will often be the deciding factor between products of equal value or quality. for example fuel-efficient vehicles. sales promotions. many companies in the financial industry are providing electronic statements by email. water efficient printing and non-hazardous products. direct marketing and on-site promotions. environmental groups and research organizations. When promoting their environmental commitment to 13 . Very few customers go out of their way to buy green products merely for the sake of it. Most customers will only be prepared to pay a premium if there is a perception of additional product value. design. Retailers. function.
some retailers sell shopping bags and promote their green commitments .**Figure 2: The Green Marketing Components 14 .reduce the use of plastic bags and promote their green commitment.
Unless some regulatory bodies are involved in providing the certifications there will not be any verifiable means. The new green movements need to reach the masses and that will take a lot of time and effort. Indian consumer is exposed to healthy living lifestyles such as yoga and natural food consumption. In particular. By India‘s ayurvedic heritage. Indian consumers do appreciate the importance of using natural and herbal beauty products. New Concept: Indian literate and urban consumer is getting more aware about the merits of Green products. and refrain from breaching any law or standards relating to products or business practices. one often finds distrust regarding the credibility of green products. Alongside. the marketers need to look at the long-term benefits from 15 .1. There is no standardization currently in place to certify a product as organic. But it is still a new concept for the masses. to ensure consumer confidence. as an increasing number of consumers' want to associate themselves with environmental-friendly products. Therefore. A standard quality control board needs to be in place for such labeling and licensing. There is no standardization to authenticate these claims.5 CHALLENGES IN GREEN MARKETING Many organizations want to turn green. one also witnesses confusion among the consumers regarding the products. The consumer needs to be educated and made aware of the environmental threats. marketers of green products need to be much more transparent. There are numerous challenges in the field of green marketing. In those aspects the consumer is already aware and will be inclined to accept the green products Patience And Perseverance: The investors and corporate need to view the environment as a major long-term investment opportunity. Some of the major hurdles are as following: Need For Standardization: It is found that very less percentage of the marketing messages from ―Green‖ campaigns are entirely true and there is a lack of standardization to authenticate these claims.
in which the company installed solar panels in two hundred gas stations. emitting CFC‘s. the environmental organization Corp Watch. In a similar kind of case Chad‘s green marketing campaign bombed because he made the mistake of packaging his environmentally friendly product in Styrofoam. and motivate consumers to switch brands or even pay a premium for the greener alternative. For instance. 16 . Also if the green products are priced very high then again it will loose its market acceptability.this new green movement. It will require a lot of patience and no immediate results. it will have its own acceptance period. the green marketing movement faced serious setbacks in the late 1980s because many industries made false claims about their products and services. This will lead to green myopia. included BP Amoco for advertising its ―Plug in the Sun" program. Avoiding Green Myopia: The first rule of green marketing is focusing on customer benefits i. It is not going to help if a product is developed which is absolutely green in various aspects but does not pass the customer satisfaction criteria. which issues annually list of the top ten "green washing" companies. which requires huge investment in R & D Water treatment technology.e. Some Other Challenges Ahead In Green Marketing Are: Green products require renewable and recyclable material. Green marketing can be a very powerful marketing strategy though when it‘s done right. Since it is a new concept and idea. the primary reason why consumers buy certain products in the first place. while continuing to aggressively lobby to drill for oil in the Arctic National Wild life Refuge. which is costly Requires a technology. Green Washing In spite of its growing popularity. Do this right. which is too costly Majority of the people are not aware of green products and their uses Majority of the consumers are not willing to pay a premium for green products.
The public tends to be skeptical of green claims to begin with and companies can seriously damage their brands and their sales if a green claim is discovered to be false or contradicted by a company's other products or practices. While green marketing was growing greatly as increasing numbers of consumers were willing to back their environmental consciousnesses with their dollars.Without environmental labeling standards. in other words presenting a product or service as green when it's not is called green washing. and the effect this is having on their products and services 17 . Thus. The media came up with the term "green washing" to describe cases where organizations misrepresented themselves as environmentally responsible.by consumers. consumers could not tell which products and services were truly beneficial. The so-called "green consumer ―movements in the country have struggled to reach critical mass and to remain in the forefront of shoppers' minds. marketers. This concern has led more companies to advertise their commitment to reduce their climate impacts. This lack of consensus -. says Makeover. it can be dangerous. and influential people -. particularly in light of growing global concern about climate change. Despite these challenges. One of green marketing's challenges is the lack of standards or public consensus about what constitutes "green". green marketing has continued to gain adherents. regulators. Consumers ended up paying extra for misrepresented products. because companies are often reluctant to promote their green attributes.has slowed the growth of green products. The Green Dilemma The past decade has shown that harnessing consumer power to effect positive environmental change is far easier said than done. and consumers are often skeptical about claims. activists. So.
Green marketing is very low on the agenda of most businesses and therefore its still an under-leveraged USP (Unique Selling Proposition). it is important for the marketers to utilize the resources efficiently without waste as well as to achieve the organization‘s objective. though initially the cost is more. more companies are responsible to consumers‘ aspirations for environmentally less damaging or neutral products. There is growing interest among the consumers all over the world regarding protection of environment. individuals (whether as a consumer or acting for a company). Appealing to this need can increase response rates to marketing executions and build brand loyalty.1. As resources are limited and human wants are unlimited. So green marketing is inevitable. It saves money in the long run. Effective green marketing targeted at the right audience will make a difference. Some of the advantages of green marketing are: It ensures sustained long term growth along with profitability. It helps in accessing the new markets and enjoying the competitive advantage. With the proliferation of environmental stories in the press and broadcast media. Many companies want to have an early mover advantage as they have to eventually move towards becoming green. It also increase their profit sustainability. Therefore. Worldwide evidence 18 .6 BENEFITS OF GREEN MARKETING Today‘s consumers are becoming more and more conscious about the environment and are also becoming socially responsible. and Enjoy a competitive advantage over the companies which are not concerned for the environment. Companies that develop new and improved products and services with environment inputs in mind give themselves access to new markets. are more aware of their personal responsibility to try to make a difference. Most of the employees also feel proud and responsible to be working for an environmentally responsible company. It helps the companies market their products and services keeping the environment aspects in mind.
green marketing has emerged which speaks for growing market for sustainable and socially responsible products and services. while satisfying consumers wants. As firms face limited natural resources. or reductions in material usage forces firms to modify their behavior 19 . Ultimately green marketing looks at how marketing activities utilize these limited resources. they must develop new or alternative ways of satisfying these unlimited wants. with which she/he must attempt to provide for the worlds' unlimited wants.indicates people are concerned about the environment and are changing their behavior. as well as achieving the selling organization's objectives. it has generally been accepted that individuals and organizations have the right to attempt to have their wants satisfied. In market societies where there is "freedom of choice". As a result of this. Five possible reasons cited are: a) Organizations perceive environmental marketing to be an opportunity that can be used to achieve its objectives b) Organizations believe they have a moral obligation to be more socially responsible c) Governmental bodies are forcing firms to become more responsible d) Competitors‘ environmental activities pressure firms to change their environmental marketing activities e) Cost factors associated with waste disposal. Man has limited resources on the earth. There is extensive debate as to whether the earth is a resource atman's disposal. When looking through the literature there are several suggested reasons for firms increased use of Green Marketing. both of individuals and industry.
Green marketing builds brand equity and wins brand loyalty among customers.7 GREEN MARKETING: SWOT ANALYSIS As in formulation of green strategy. Overemphasizing greenness rather than customer needs can prove devastating for a product.1. Marketers can charge a premium on products that are seen as more ecoresponsible. 2. E. Marketers get access to new markets and gain an advantage over competitor‘s that are not focusing on ―greenness‖. E.g. 2. and they may lose trust in an organization that suddenly claims to be green. Many customers keep away from products labeled ―Green‖ because they see such labeling as a marketing gimmick. These consumers are demanding products that conform to these new attitudes 20 . OPPORTUNITIES: 1. a firm may evolve it from a SWOT analysis Environmental Audit STRENGTHS: 1. 3. products cannot be recycled. Marketing to segment which are becoming more environmentally aware and concerned.g. 3. Organizations that adopt green marketing are perceived to be more socially responsible 4. WEAKNESS: 1. Most customers choose to satisfy their personal needs before caring for environment. research and development capabilities for clean processes and green products and human resources committed to environmental protection. and hazardous wastes) of a company.
Uncertainty as to which green marketing activities are acceptable from a government perspective. Environmental Audit is comprised of a systematic. threat one and two above may cause backlash to arise. E. Competitors gain market shares with green products and increased environmental regulations). offering an environmental friendly product and saving resources. relative to the competitors.g. 21 . Organizations perceive green marketing to be a competitive advantage. This complements the increase in consumers‘ socially conscious behavior and will therefore give them an advantage over competitors who do not address these issues. 3. The possibility of a backlash from consumers or government based on existing green marketing claims. including that is perceived to be less environmentally harmful.2. and relating them to internal strengths. E. periodic and objective environmental performance evaluation and facilities. Uncertainty as to the environmental impact of present activities. THREATS: 1. strive to improve upon their societal awareness. therefore. ENVIRONMENTAL AUDIT: It is a management tool which can be used to assess the environmental performance of the company and its units and to identify the weak points.g. 2. Firms. documented.
Brooke Bond joined the Unilever fold in 1984 through an international acquisition. Since the very early years. In 1912. Pond's (India) Limited had been present in India since 1947. By 1903. HUL has vigorously responded to the stimulus of economic growth. clearly marked an inflexion in HUL's and the Group's growth curve. 1993. Removal of the regulatory framework allowed the company to explore every single product and opportunity segment.55% equity in the company. The erstwhile Lipton's links with India were forged in 1898. Lux and Vim. visitors to the Kolkata harbor & noticed crates full of Sunlight soap bars. Simultaneously.2. The erstwhile Brooke Bond's presence in India dates back to 1900. started in 1991. Unilever now holds 51. effective from April 1. began an era of marketing branded. Lakme Limited. to market Lakme's market-leading cosmetics and 22 . These three companies merged to form HUL in November 1956. India Limited was formed. Unilever set up its first Indian subsidiary. Fast Moving Consumer Goods (FMCG). It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986. In the summer of 1888. Brooke Bond & Co. HUL offered 10% of its equity to the Indian public. The liberalization of the Indian economy. acquisitions and mergers. embossed with the words "Made in England by Lever Brothers". without any constraints on production capacity. the company had launched Red Label tea in the country. being the first among the foreign subsidiaries to do so. followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). and in 1977 Lipton Tea (India) Limited was incorporated. In one of the most visible and talked about events of India's corporate history. formed a 50:50 joint venture.000 individual shareholders and financial institutions. Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937. the erstwhile Tata Oil Mills Company (TOMCO) merged with HUL. Soon after followed Lifebuoy in 1895 and other famous brands like Pears. Lakme Lever Limited. Hindustan Vanaspati Manufacturing Company. HUL and yet another Tata company. The rest of the shareholding is distributed among about 380. Introduction of hul Over 100 years' link with India. In 1995. Unilever acquired Lipton in 1972. In 1931. With it. always in line with Indian opinions and aspirations. The growth process has been accompanied by judicious diversification. deregulation permitted alliances.
Detergents and Personal Products both for the domestic market and exports to India. Kimberly-Clark Lever Ltd. The internal restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998. which markets Huggies Diapers and Kotex Sanitary Pads. the company entered into a strategic alliance with the Kwality Ice-cream Group families and in 1995 the Milk food 100% Ice-cream marketing and distribution rights too were acquired. The two companies had significant overlaps in Personal Products. In 2002. benefits from scale economies both in domestic and export markets and enable it to fund investments required for aggressively building new categories. HUL's entry into Bread is a strategic extension of the company's wheat business. The two also had a common management pool and a technology base. As a measure of backward integration. with effect from January 1. By the end of the year. enabling greater focus and ensuring synergy in the traditional Beverages business. Then in July 1993. Subsequently in 1998. In 2003. The NLL factory manufactures HUL's products like Soaps. BBLIL merged with HUL. Finally. The amalgamation was done to ensure for the Group.other appropriate products of both the companies. the government decided to award 74 per cent equity in Modern Foods to HUL. were merged with Brooke Bond. The 1990s also witnessed a string of crucial mergers. 1996. HUL has also set up a subsidiary in Nepal. thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. In 1993. 1994 witnessed BBLIL launching the Wall's range of Frozen Desserts. HUL acquired the government's remaining stake in Modern Foods. Nepal Lever Limited (NLL). In 1992. besides a common distribution system since 1993 for Personal Products. Tea Estates and Doom Dooma. Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL). it acquired the Kissan business from the UB Group and the Dollops Ice-cream business from Cadbury India. HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994. with significant interests in Instant Coffee. and its factory represents the largest manufacturing investment in the Himalayan kingdom. the erstwhile Brooke Bond acquired Kothari General Foods. in a historic step. HUL acquired the Cooked Shrimp and 23 . acquisitions and alliances on the Foods and Beverages front. Lakme Limited sold its brands to HUL and divested its 50% stake in the joint venture to the company. two plantation companies of Unilever. Specialty Chemicals and Exports businesses. In January 2000.
Pasteurised Crabmeat business of the Amalgam Group of Companies. a leader in value added Marine Products exports. 24 .
HUL believes that an organization‘s worth is also in the service it renders to the community. women empowerment. Kwality Wall's – are household names across the country and span many categories soaps. Surf Excel.2. coffee. Kissan.000 individual shareholders and financial institutions. HUL is focusing on health & hygiene education. which holds 51. HUL's distribution network. is to "add vitality to life.350 managers. Rin. and personal care with brands that help people feel good. look good and get more out of life. Wheel. which incorporates latest technology in all its operations. including over 1. Lakme. and rural development. The rest of the shareholding is distributed among 380. hygiene.55% of the equity.000 redistribution stockists. many with post-doctoral experience acquired in the US and Europe. Brooke Bond. HUL has traditionally been a company. HUL has also responded in case of national calamities / adversities and contributes 25 . and water management. It is also involved in education and rehabilitation of special or underprivileged children. directly covers the entire urban population. HUL's brands . detergents. The Hindustan Lever Research Centre (HLRC) was set up in 1958. and now has facilities in Mumbai and Bangalore. Sunsilk.1 COMPANY PROFILE The mission that inspires HUL's 36. It is a mission HUL shares with its parent company. and about 250 million rural consumers. care for the destitute and HIV-positive. Knorr-Annapurna. Lux. branded staples. They are manufactured in close to 80 factories. tea.000 suppliers and associates. Fair & Lovely. HLRC and the Global Technology Centers in India have over 200 highly qualified scientists and technologists. Clinic.000 employees. personal products. Close-up. ice cream and culinary products. Pepsodent. Pond's. Unilever.like Lifebuoy. The operations involve over 2. comprising about 7." HUL meets everyday needs for nutrition.
It has already touched 70 million people in approximately 15000 villages of 8 states. most recent being the village built by HUL in earthquake affected Gujarat.000 villages impacting the lives of over a 100 million rural Indians. and creating access to relevant information through the iShakti community portal. it is because of being single-minded in identifying itself with Indian aspirations and needs in every walk of life. Through Shakti. If Hindustan Lever straddles the Indian corporate world. and relief & rehabilitation after the Tsunami caused devastation in South India.through various welfare measures.000 villages in 12 states. HUL is creating micro-enterprise opportunities for rural women. Shakti also includes health and hygiene education through the Shakti Vani Programme. HUL's vision is to take this programme to 100. The programme now covers about 50. HUL is also running a rural health programme – Lifebuoy Swasthya Chetana. Over the last three years the company has embarked on an ambitious programme. The vision is to make a billion Indians feel safe and secure. The programme endeavtheirs to induce adoption of hygienic practices among rural Indians and aims to bring down the incidence of diarrhoea. Shakti. thereby improving their livelihood and the standard of living in rural communities. 26 .
introduce and maintain environmental management systems across the company to meet the company standards as well as statutory requirements for environment. Enctheirage suppliers and co-packers to develop and employ environmentally superior processes and ingredients and co-operate with other members of the supply chain to improve overall environmental performance. Verify compliance with these standards through regular auditing. Develop. Reduce Waste. which are scientifically sustainable and commonly acceptable. conserve Energy and explore opportunities for reuse and recycle.2 Accordingly. HUL's aims are to: Ensure safety of its products and operations for the environment by using standards of environmental safety. Involve all employees in the implementation of this Policy and provide appropriate training. 27 . Assess environmental impact of all its activities and set annual improvement objectives and targets and review these to ensure that these are being met at the individual unit and corporate levels. increase understanding of environmental issues and disseminate good practice.2. Provide for dissemination of information to employees on environmental objectives and performance through suitable communication networks. Work in partnership with external bodies and Government agencies to promote environmental care.
PRODUCTS Lux Lifebuoy Liril Hamam Breeze Dove Pears Rexona Surf Excel Rin Wheel Fair & Lovely Pond's Sunsilk Naturals Clinic Pepsodent Close-up Axe Rexona Lakme 28 .
Ayush Brooke Bond Lipton Bru Kissan Knorr Annapurna Kwality Wall's 29 .
The benefits of green marketing in Hull are very clear. including marketing services and products. These kinds of marketing services and products cause less waste. Actually. these kinds of services and products tend to cost more a substantial amount the time. and when possible are often made out of recycled materials. However. do not use unpleasant chemicals and dyes. Although there are many upsides to choosing a green marketing approach for your personal Hull business. Read further to find out more about green marketing in Hull. Today. 30 . Below are things to consider using and incorporating if you wish to green up your marketing. Another thing to consider is the possible lack of local green marketing options in some areas.3. there's a wide range of green marketing products and services in Hull available. A residual benefit is that many consumers will appreciate the extra steps you are taking to become more eco-friendly with your marketing which will improve their perception of your business. the good news is that as the use of these types of marketing products and services increases the cost will go down and depending on the strategies you use green marketing may help you cut costs in different ways. MA. but the primary advantage is their environmental benefits. the cost is about the only drawback there is to green marketing in Hull. get ideas that can be used to market your small business and cut costs in addition to helping the environment all at the same time. Green marketing in hul Now that the green movement is well underway in Hull companies are starting to find there's a green option for almost everything. Being enviromentally friendly with your marketing is easy and may also be cost-effective when you get creative and think outside the box.
online provider. Online marketing doesn't use nearly as many resources and create as much waste as print and even commercial marketing. Use green incentives . it's also the greenest strategy to market your business. It's also supporting local Hull business which is a easy way to help grow your own. You may also buy biodegradable packaging and choosing boxes and envelopes made out of recycled materials. Choose local food – If you are putting on a seminar. Reusable grocery bags – Put your logo on a reusable bag for a functional promo marketing product. Depending on the type of green marketing products and services you are interested in you can opt to use a local business.Motivate consumers by marketing about donations to environmentally friendly organizations. hosting a luncheon. Massachusetts and will provide you with options no matter where your business is located so it's the perfect starting point your search.Green packaging – Think about how you can recycle things like old newspapers and magazine to cushion packages. This makes a large impact if you advertise that you'll donate to an organization whenever a purchase is made. doing it DYI or a combination. Along with helping people reduce waste. Use online marketing – Not only is online marketing a highly targeted and cost effective roach. Green Seal has been providing standards and 3rd party certification since 1989. or throwing a launch party choosing to use locally grown and produced foods will reduce the carbon footprint that it takes to cater the event. The internet is a great resource for finding green marketing tools in Hull. It's also a good idea to look for green marketing products and services in Hull that are Green Seal certified. The customer will feel like they're getting more for their money and that their purchase benefits the environment just as much as it benefits them. a reusable bag is a marketing product people want and will use thus upping your ROI with free advertising. 31 .
Their first priority is to be a successful business and that means investing for growth and balancing short-term and long-term interests. just as real as their people and brands. 32 . their business partners and the world in which we live. More detailed guidance tailored to the needs of different countries and companies will build on these principles as appropriate. It must have practical value in their day-to-day business and each one of us must follow these principles in the spirit as well as the letter‖. PRESENT MARKETING STRATEGY: Mission: Hindustan Unilever Limited mission is to add Vitality to life. From HUL Spokesperson ―To succeed requires the highest standards of behavior from all of us. hygiene. It also means caring about their consumers. We want this Code to be more than a collection of high-sounding statements. The general principles contained in this Code set out those standards. employees and shareholders. look good and get more out of life. We meet everyday needs for nutrition. Obeying the Law HUL companies and employees are required to comply with the laws and regulations of the countries in which they operate. but will not include any standards less rigorous than those contained in this Code. and personal care with brands that help people feel good.4. This reputation is an asset. Policy: HUL has earned a reputation for conducting its business with integrity and with respect for the interests of those their activities can affect.
HUL respect the dignity of the individual and the right of employees to freedom of association. Business Partners HUL is committed to establishing mutually beneficial relations with their suppliers. financial situation and performance to all shareholders. Products and services will be accurately and properly labelled. structure. HUL will maintain good communications with employees through company based information and consultation procedures. advertised and communicated. compulsory or child labour. HUL are committed to working with employees to develop and enhance each individual's skills and capabilities. 33 . regular and reliable information on their activities.Employees HUL is committed to diversity in a working environment where there is mutual trust and respect and where everyone feels responsible for the performance and reputation of the company. HUL are committed to safe and healthy working conditions for all employees. In their business dealings they expect their partners to adhere to business principles consistent with their own. Consumers HUL is committed to providing branded products and services which consistently offer value in terms of price and quality. employ and promote employees on the sole basis of the qualifications and abilities needed for the work to be performed. customers and business partners. Shareholders HUL will conduct its operations in accordance with internationally accepted principles of good corporate governance. and which are safe for their intended use. HUL will recruit. They will provide timely. We will not use any form of forced.
HUL neither supports political parties nor contributes to the funds of groups whose activities are calculated to promote party interests.Community Involvement HUL strives to be a trusted corporate citizen and. HUL will work in partnership with others to promote environmental care. HUL will co-operate with governments and other organisations. as an integral part of society. to fulfill their responsibilities to the societies and communities in which they operate. The Environment HUL is committed to making continuous improvements in the management of their environmental impact and to the longer-term goal of developing a sustainable business. Public Activities HUL companies are encouraged to promote and defend their legitimate business interests. increase understanding of environmental issues and disseminate good practice. Competition HUL believes in vigorous yet fair competition and supports the development of appropriate competition laws. They will work on the basis of sound science. Innovation In their scientific innovation to meet consumer needs they will respect the concerns of their consumers and of society. applying rigorous standards of product safety. both directly and through bodies such as trade associations. 34 . Their companies and employees will conduct their operations in accordance with the principles of fair competition and all applicable regulations. in the development of proposed legislation and other regulations which may affect legitimate business interests.
Business Integrity HUL does not give or receive. No undisclosed or unrecorded account. Any demand for. The Board of Unilever will not criticise management for any loss 35 . or offer of. Compliance with the Code is subject to review by the Board supported by the Audit Committee of the Board and the Corporate Risk Committee. if necessary through more detailed guidance tailored to local needs. all employees. whether directly or indirectly. give or receive any gift or payment which is. HUL employees must not seek gain for themselves or others through misuse of their positions. HUL accounting records and supporting documents must accurately describe and reflect the nature of the underlying transactions. Day-to-day responsibility is delegated to the senior management of the regions and operating companies. Assurance of compliance is given and monitored each year. bribes or other improper advantages for business or financial gain. Any breaches of the Code must be reported in accordance with the procedures specified by the Joint Secretaries. or may be construed as being. The Unilever Board is responsible for ensuring these principles are communicated to. a bribe. No employee may offer. They are responsible for implementing these principles. and understood and observed by. a bribe must be rejected immediately and reported to management. Conflicts of Interests All HUL employees are expected to avoid personal activities and financial interests which could conflict with their responsibilities to the company. fund or asset will be established or maintained. Compliance – Monitoring – Reporting Compliance with these principles is an essential element in their business success.
the societies and the world in which we live. its use or foreseeable misuse. encompassing all available knowledge and information. and Unilever PLC‘. In doing so. any breach or suspected breach of these principles. the risk of an adverse environmental impact arising from processing of the product. 36 . The aim of the Policy is to do all that is reasonably practicable to prevent or minimise.V. Unilever PLC and their respective subsidiary companies.V. employees.of business resulting from adherence to these principles and other mandatory policies and instructions. on a scientifically established basis. the Company is committed to exhibit the highest standards of corporate behaviour towards its consumers. performance and safety. or to that of senior management. The Board of Unilever means the Directors of Unilever N.ref:THE NEWS Envoirment policy Hindustan Unilever Limited (HUL) supplies high quality goods and services to meet the daily needs of consumers and industry. In this Code the expressions 'Unilever' and 'Unilever companies' are used for convenience and mean the Unilever Group of companies comprising Unilever N.. Provision has been made for employees to be able to report in confidence and no employee will suffer as a consequence of doing so. The Board of Unilever expects employees to bring to their attention. The company is committed to making its products environmentally acceptable. while fulfilling consumers' requirements for excellent quality. The company recognizes its joint responsibility with the Government and the Public to protect environment and is committed to regulate all its activities so as to follow best practicable means for mininising adverse environmental impact arising out of its operations.
The Policy applies to development of a process. It is applicable to all company operations covering its plantations. The Vision Their vision is to continue to be an environmentally responsible organisation making continuous improvements in the management of the environmental impact of their operations. which focuses on People.This Policy document reflects the continuing commitment of the Board for sound Environment Management of its operations. HUL will achieve this through an Integrated Environment Management approach. 37 . research & innovation centers and offices. product and services. Technology and Facilities. supported by Management Commitment as the prime driver. manufacturing. sales and distribution. from research to full-scale operation. This document defines the aims and scope of the Policy as well as responsibilities for the achievement of the objectives laid down.
38 . Either. HUL sales growth in June 2004 was decreased due to the problem with promotion and pricing. Also these components should be dealt with independently. Although being the most competitive product on the basis of the Market Operating Price (MOP). Customer Specific Details. Another serious suggestion is that HUL must give good attention to their all the products rice and all are not getting much attention. when actually it should be sold like a high volume product. the shampoos are still not selling much. The basic need of the customer need to be addressed which is actually not much expensive and better quality. Brand Image. In any correspondence with the customers the message should be sent in these components only to have the maximum benefit from the advertisement. This is perhaps due to the bargaining stress on the customer and the weak push given by the dealer to the particular item. Physical attributes. The advertisements should speak only of the believable concepts rather than glorifying the pretentious ones. the technical details should be presented in a clearer manner or the dealers need to be educated properly.SUGGESTIONS Key attribute components: Value for money and Customer Care Operational attributes. The dealers don‘t provide much support to the customers in making them understand the real Quality behind them.
They are redefining their marketing mix by introduction of green products and processes. Indian FMCG companies are also adopting „green‟ to retain their image in the market. society welfare for the companies as well for society also. employee satisfaction. Companies like HUL. This threat is shifting the buyer’s consumption pattern from unsustainable to sustainable. This shift is changing the buying behaviour of the individual because their need is changing form environmental harmful products to environmental friendly products. Green marketing helps in the effective outcomes like cost cutting. The rapid increase for the environment concern in last two decades is stressing companies to prove the change to ensure the sustainable growth of the society. Green Marketing is still in the stage of childhood in the Indian companies. They are more concerned about the environment protection. But at the same time it is necessary for the companies to understand that Green marketing should not overlook the economic aspect of marketing. Thus from the study of HUL through strategic model it can be understood that being so large and so extensive in brands it has allocated equal importance to each of its 39 . The companies are involved in various activities to show their concern for environment as well as society. The lots of opportunities are available in Indian market. waste minimization.CONCLUSION Significant change in the climatic condition results in a threat for the survival of the society. ITC started to produce Sustainability report of the companies to achieve benefit and to develop a positive brand image it is required that benefit should be visible to the consumer. Companies are trying different ways to get benefit from their green efforts. Customer is ready to pay the ecopremium but they have to enhance the performance of their product and focus on the retention of the customer. Only thing required is the determination and commitment from the all the stakeholders of the companies. Organizations are now aware with the fact that without adopting green in the core of their strategy they cannot survive in the present competitive era. This transformation in consumer’s behaviour is compelling corporate to think about the harmful impact of their activities on the natural environment of the world. It is the right time to adopt the concept of sustainable development in the marketing mix of the companies and integrate them to save the planet from the upcoming risk.
Such team work and a passionate commitment to achieve a shared goal is what helps HUL create milestones 40 . As bees are treated as social insects. committed to prioritizing the colony‘s needs and working together.product and services. HUL is not onlyfocusing in major brands but also on those brands which are not performing well and new products are brought into market by viewing the importance of Innovation in this changing environment. Moreover being so evident in each of its segment which is widely used by Indian as well as world wide customers.
com 3.google. www. 41 .in 5.Openpdf. www. Ref: business world magazine.HUL.BIBLIOGRAPHY 1. Company’s brochure 4.co. www. The Times of India and Hindustan Times 2.com 6.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.