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HINDUSTAN UNILEVER- TRANSFORMING A BRAND INTO A

SOCIALLY RESPONSIBLE LEADER.

CASE STUDY
HINDUSTAN UNILEVER- TRANSFORMING A BRAND INTO A
SOCIALLY RESPONSIBLE LEADER.

Amity International Business School
Aditya Agarwal
A1802014167
Faculty Guide- Dr. Kokil Jain
Industry Guide- Mr. Shashank Shekhar

[Type text]

the Unilever 2010 strategic plan was put into action with the mission to ‘bring vitality to life’ and ‘to meet everyday needs for nutrition. cosmetics. It has 179. Through the next five decades. coffee. the companies merged to form Unilever that diversified into food products in 1940s. To develop a promotion plan for brand communication of the HUL. What is the steps company is utilizing to find current trend in the market. HUL works to create a better future every day and helps people feel good. home care and personal care. home care products. Its origin goes back to the 19th century when a group of companies operating independently. Internationalization is based on the principle of local roots with global scale aimed at becoming a ‘multi-local multi-national’. and personal care products. skin care.6 billion and net profit of €3. look good and get more out of life with brands and services that are good for them and good for others. shampoos. has a turnover of €39. In 2004. it emerged as a major fast-moving consumer goods (FMCG) multinational operating in several businesses. Unilever operates in more than 100 countries. toothpastes. hygiene and personal care with brands that help people feel good.000 employees and is a culturally-diverse organization with its top management coming from 24 nations. To find the market share of the HUL brands and its competitive brands.EXECUTIVE SUMMARY The main objective of this case is to find. ice cream. In 1930. What are the marketing strategies of HUL? Unilever is one of the world’s oldest multinational companies. is adapting to be market leader and to differentiate itself from its competitors. Food brands. To study the competitive brands in the market of.685 billion in 2006 and derives 41 per cent of its income from the developing and emerging economies around the world. deodorants. packaged foods. look good and get more out of life’. The corporate strategy is of focusing on core businesses of food. detergents. and water Aditya Agarwal A1802014167 . Key areas of strength and weakness for HUL brands. To study various brands of HUL. INTRODUCTION Hindustan Unilever Limited (HUL) is one of the India's largest Fast Moving Consumer Goods Company with a heritage of over 75 years in India and touches the lives of two out of three Indians. With over 35 brands spanning 20 distinct categories such as soaps. tea. what are the steps Hindustan Unilever Ltd. produced soaps and margarine.

which markets Huggies Diapers and Kotex Sanitary Pads. Pond’s. Soon after followed Lifebuoy in 1895 and other famous brands like Pears. effective from April 1.purifiers. Brooke Bond. In 1931. began an era of marketing branded. Knorr. Fair & Lovely. being the first among the foreign subsidiaries to do so. Sunsilk. followed by Lever Brothers India Limited (1933) and United Traders Limited (1935).2011). Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937. Its portfolio includes leading household brands such as Lux. 401 crores (financial year 2010 . These three companies merged to form HUL in November 1956. Surf Excel. started in 1991. Closeup. Kimberly-Clark Lever Ltd. Unilever set up its first Indian subsidiary. Lakme. In the summer of 1888. the erstwhile Tata Oil Mills Company (TOMCO) merged with HUL. The liberalization of the Indian economy. Pepsodent. HUL and yet another Tata company. Lakme Limited sold its brands to HUL and divested its 50% stake in the joint venture to the company.55% equity in the company. clearly marked an inflexion in HUL's and the Group's growth curve. The rest of the shareholding is distributed among about 380. Clinic Plus. Nepal Lever Limited (NLL). In one of the most visible and talked about events of India's corporate history. Unilever has about 52% shareholding in HUL. Vaseline. Over 100 years' link with India. Wheel. without any constraints on production capacity. Fast Moving Consumer Goods (FMCG). Unilever now holds 51. Lifebuoy. Lakme Limited.19.000 employees and has an annual turnover of around Rs. one of the world’s 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. Kwality Wall’s and Pure-it. HUL is a subsidiary of Unilever. Removal of the regulatory framework allowed the company to explore every single product and opportunity segment. the Company is a part of the everyday life of millions of consumers across India. HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994. Kissan.000 individual shareholders and financial institutions. acquisitions and mergers. HUL has also set up a subsidiary in Nepal. With it. HUL offered 10% of its equity to the Indian public. to market Lakme's market-leading cosmetics and other appropriate products of both the companies. Axe. Bru. visitors to the Kolkata harbor & noticed crates full of Sunlight soap bars embossed with the words "Made in England by Lever Brothers". Hindustan Vanaspati Manufacturing Company. Lux and Vim. Simultaneously. and its factory represents the Aditya Agarwal A1802014167 . In 1995. Subsequently in 1998. Rin. 1993. formed a 50:50 joint venture. deregulation permitted alliances. Dove. The Company has over 16. Lakme Lever Limited.

There are over 15000 employees.They have restructured their core business in two divisions i. there are separate departments for specialty exports and new ventures.295 crore and net profit of 1855 crore in 2006. ice creams and processed food brand. laundry. skin care.HUL tries to bring a change in their job management structure by taking the step of reducing managerial job classes and developing deep level expertise . shop owners and distributors & suppliers of the company.To grab opportunities in untapped rural and food processing market .HUL’s corporate level strategy was to shift the decision making power from subsidiary to its headquarters . The purpose of HUL was to bring importance to life and to satisfy the daily needs of the customers in areas of personal and household care. newspaper. the methodology used is interview and survey method. For instance.HUL’s strategy remained focused in creating power brands and creating margins . primary data as well as secondary data was collected Primary Data has been collected through personal contact. food .For the rural areas . company literature and websites.e. There are 20 different consumer categories in these two businesses.largest manufacturing investment in the Himalayan kingdom. Data Collection Method: For this research study. Detergents and Personal Products both for the domestic market and exports to India. For this purpose both questionnaire and one-on-one interview was considered with the consumers. while food businesses have tea. to find the defining strategies used. The NLL factory manufactures HUL's products like Soaps. including more than 1300 managers. Aditya Agarwal A1802014167 .Also they believe in having clarified long term strategies and delivering sustainable performance. There is large no. home and personal care is made up of personal wash. coffee. Secondary data has collected from magazines.These include building market and building brands . deodorants. State the strategy of Hindustan Uniliver.12.Apart from that .HUL have followed the strategy of building its distribution channels in transitional manner .It focuses mainly for the improvement in the products already existing in the market. oral care. These core businesses are in home and personal care and food.launching brands when innovative pipeline is full . HUL started project streamline in 1997.One of HUL’s strategy is direct selling . The present corporate strategy of HUL is to focus on core businesses.HUL also have few pioneering strategies . home and personal core products . hair. colour cosmetics and ayurvedic personal and health care. It also strived to create an awareness among the people related to nutrition and hygiene . HUL is one of the largest FMCG company in India with total sales of Rs. Apart from the two product divisions. of FMCG companies in the market.

The Questionnaires were designed in two sets. Jhandu 3. did they want any change in the existing product. Britannia 7. Thereafter which was written and than analyzed MAJOR FINDINGS Major competitors 1. are they brand loyal or they consider their friends advice or some reference group during purchasing. ITC 8. Dabur 2. their purchasing habit. I also tried to find out that are they satisfied with the quality or present stature of product. for the purpose of primary data collection were Questionnaires. Procter & Gamble 6. one is for customers and another is for shop-owners and distributors. Gillette SAMPLING TECHNIQUE For my survey I used Cluster Sampling technique. Aditya Agarwal A1802014167 . Johnson &Johnson 4. In the survey I tried to find out their preferences & tastes. I also interviewed some of the shop owner and distributors and try to find out what the company is doing to sustain their customer and what new changes they are bringing in their product to gain competitive advantage from other competitors RESEARCH INSTRUMENT Research instruments.Data analysis: Analyzing codes to each question were awarded. Cavin Care 5. I selected a sample of 100 people around the area and interviewed them according to the questionnaire.

• Second set is all about what are the steps company are taking to get about the information about the changing preferences in the taste and needs of the customers and what company is doing to sustain their market position as well as to tap new market. Finally. Which of the following companies' FMCG products do you prefer to use?  HUL (Hindustan Unilever Limited)  ITC (Indian Tobacco Company)  P & G (Procter & Gamble)  Nestlé  Dabur Aditya Agarwal A1802014167 Figure 1 . an effort was made to extract meaningful information from analyzed data.• The first set is to find out about the needs and preferences of the customers and what they want from in the product and also the level of knowledge about different products in the market. charts etc. •The graphic rating scale and ranking method was used to measure the response and attitude of the customer. DATA ANALYSIS For the analysis of data collected through survey work. a series of steps were followed which are given in a chronological order •Each question of the questionnaire was assigned codes (coding) •Each questionnaire was punched into ms-excel sheet thus forming a data base (punching) •Further the data was analyzed by using diagrams. graphs. which acted as a base for the recommendations.

They have 35 powerful brands covering all segments. They are delivering good services and the changes they brought in the products are well taken by the customers. with leading market positions in most. The scale of the business and operations gives them the resources needed. by this they are generating sustainable profitable growth. the per capita income in India is likely to double. Over the next 10 years. increase usage. 000 crores. Aditya Agarwal A1802014167 . As a result.40. Volume growth is being followed by value growth. It has done so by substantially strengthening their brands and building capabilities. their transformation has resulted in a new HUL. this force the traditional and old HUL for the change and thus. The people are energized by the scale of the opportunity and determined to seize it. Today. and upgrade consumers.100. In FMCG. there is an opportunity to catalyze penetration. India is one of the most exciting markets offering great potential. the FMCG market is expected to grow to over Rs. which has successfully faced this challenge and reversed this trend.CONCLUSION In recent years. 000 cores from its current base of Rs. The new Hindustan Lever sees an exciting opportunity for growth. these are stronger and more relevant to the consumer than ever. This has already begun to yield benefits and they are returning to growth. Also because of presence of large number of companies trying to seize this opportunity. the FMCG sector declined due to down trading. which in turn is bringing profit growth.

Aditya Agarwal A1802014167 . efficient and better equipped resource base. In this regard a few suggestions can be made to give the required boost to the marketing prospects of HUL products. These can be summed up as follows:  An attempt should be made by HUL management to tap all the potentials offered by the global market by devoting a more substantial. can be covered with greater ease. This task can be accomplished in the first place by implementing a stronger and more ending distribution channel for various products so that even those sections of consumers who are not accessible so easily.  Efficient infrastructural base coupled with better and more comprehensive advertising strategies should be resorted to. though HUL is presently surfing ahead of others on the path of taking some great initiatives it should be more concerned about it for the purpose of corporate image building. there are genuine reasons to observe that they have yet to attain the cutting edge status on many counts.RECOMMENDATIONS AND SUGGETIONS  As it is obvious from the study the products of HUL have approached the high water mark of sale in the global consumer market. However.