Hindustan Unilever Ltd.

INTRO

INTRODUCTION

India's largest Fast Moving Consumer Goods company with 80 factories across India. In 1931, first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). HUL formed in November 1956; The Anglo-Dutch company Unilever owns a majority stake in Hindustan Unilever Limited. The mission ± ³add vitality to life.´

50 ‡ HUL is the market leader in the soap segment in India . ‡ Sales growth in 2008-09 is 15.4% from 14% to 14.Contd.4% in the year 2008-09 ‡ Gross sales is 21649.51 crores ‡ Share price Rs237.5% ‡ Operating margin increased by 0..

STRATEGIC THINKING VISION: HUL's vision is to continuously innovate technologies to further reduce water consumption and further increase conservation in its operations. wherever required. HUL sites will progressively help communities. and personal care with brands that help people feel good. to develop watersheds. look good and get more out of life. . Simultaneously. hygiene. MISSION OF HUL: Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition.

hygiene and personal care with brands that help people feel good. We will bring our wealth of knowledge and international expertise to the service of local consumers . Our long-term success requires a total commitment to exceptional standards of performance and productivity. Our deep roots in local cultures and markets around the world give us our strong relationship with consumers and are the foundation for our future growth.a truly multi-local multinational. look good and get more out of life. and to a willingness to embrace new ideas and learn continuously. .CORPORATE PUPROSE Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition. to working together effectively.

PRODUCT SEGMENTATION OF HUL .

MP I IV SI UA I N F HUL WI H I S MP I S 80% 70% 60% 50% 40% 30% 20% 10% 0% HUL MP I .

Mysore Sandal ‡ Godrej no. Nirma ‡ Dettol ‡ Santoor. Chandrika ‡ Cinthol.Competitors of HUL SOAPS HUL brands ‡ Lux ‡ Rexona ‡ Breeze ‡ Lifebuoy ‡ Pears ‡ Dove ‡ Hamam Competitors brands ‡ Santoor. 1. ‡ Camay ‡ Margo .

HUL s SOAP MARKETSHARE 57% 55% 55% 52% 10% 9% 8% 8% 9% 5% .

‡ Innovative Aspects. 3400 distributers 16 million outlets over the world. ‡ Corporate Social Responsibility (CSR) .SWOT ANALYSIS Strengths: ‡Strong brand portfolio. price. ‡ Strong R&D of the company ‡ Highly skilled human resource. quantity & variety. ‡ Presence of Established distribution networks in both urban and rural areas. 700 million customer base.

Untapped rural market. ‡High advertising costs ‡Complex supply chain configuration. unwieldy number. Opportunities: Large domestic market ± over a billion population. Of SKU¶s with dispersed manufacturing locations. ‡Price positioning in some categories allows for low price competition. i. Increasing cost of raw material .e. increasing per capita income of consumers.SWOT Analysis Weaknesses: ‡Strong Competitors. Threats:     Tax and regulatory structure. Mimic of brands Entry of ITC in FMCG sector. Changing Lifestyles & Rising income levels.

PORTER·S FORCES .

making the industry quite competitive.RIVALS Consumer in this category enjoy multitude of choices. It does not cost anything for a consumer to buy one brand of shampoo instead of another. .

.SUPPLIERS 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.

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

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.

. brand succeeds in helping to build a competitive advantage.THREAT OF SUBSTITUTE Within the consumer product industry. but even the pricing power of the brands can be eroded.

low spending power and low stakeholder confidence ‡ Cheaper labour in developing countries affects the competitiveness of products from developed countries .PEST ANALYSIS POLITICAL ‡ Legislation such as the minimum wage or anti discrimination laws. tariffs or restrictions ‡ Tax levies and tax breaks ‡ Type of government regime eg communist. ‡ Voluntary codes and practices ‡ Market regulations ‡ Trade agreements. dictatorship ECONOMICAL ‡ Recession will have high unemployment. democratic.

‡ Technology hardware such as mobile phones. ‡ Falling birth rates will result in decreased demand and greater competition as the number of consumers fall. laptops. . Bluetooth devices. Blackberrys. photocopiers and fax machines which transmit and record information. desktops. ‡ Organisationsmust be able to offer products and services that aim to complement and benefit people¶s lifestyle and behavior. ‡ Technology infrastructure such as the internet and other information exchange systems including telephone ‡ Technology systems incorporating a multitude of software which help them manage their business.SOCIAL ‡ Changes in the structure of a population will affect the supply and demand of goods and services within an economy. TECHNOLOGICAL ‡ Advanced technology for manufacturing process which give low cost advantage.

(Rs700-800 cr) Segmentation strategy Premium brand Affordable brand Value for money Innovation strategy-introduction of sachet in shampoo Mergers and acquisitions strategy . Distribution network (direct selling) Brand extension strategy Line extension strategy Repositioning strategy Promotional strategy-ads.STRATEGIES FOLLOWED AT HUL Distribution strategy.

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