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Product – LUX Soap
Company profile Product portfolio Distribution system and channels Pricing strategy Media used competitors Promotional activities Famous events done in rural India Alternative strategy
1. Company Profile
1. Company Profile
Type Industry Founded Headquarters Key people :Public company BSE: 500696 :Fast Moving Consumer Goods FMCG) :1933 :Mumbai, India :Harish Manwani (Chairman), Nitin Paranjpe (CEO and MD) :Home & Personal Care, Food & Beverages :Rs.20,869.57 crore (US$4.61 billion) (2008-2009) :65,000 direct & indirect employees
Products Revenue Employees Over
The Anglo-Dutch company Unilever owns a 52% majority stake.. Hindustan Vanaspati Mfg. and United Traders Ltd. Co.3 million outlets in the country nearly 80% of all retail outlets in India.Contd. 5 . Hindustan Unilever's distribution covers over 1 million retail outlets across India directly. 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. Ltd. Its products are available in over 6. The company was renamed in June 2007 as “Hindustan Unilever Limited”.
It estimates that two out of three Indians use its many home and personal care products.3 million outlets and owns 35 major Indian brands HUL is one of the country's largest exporters. HUL was one of the eight Indian companies to be featured on the Forbes list of World‟s Most Reputed companies in 2007 The Hindustan Unilever Research Centre (HURC) was set up in 1967 in Mumbai. the company's research facilities were brought together at a single site in 6 Bangalore . food and beverages The company has a distribution channel of 6. In 2006.Contd. it has been recognized as a Golden Super Star Trading House by the Government of India. Staff at these centers developed many innovations in products and manufacturing processes. and Unilever Research India in Bangalore in 1997..
Coimbatore.000 women entrepreneurs in 135. Lifebuoy Swasthya Chetana. and male grooming by DIY 7 .Contd. Under HULN.000 villages. The programme endeavors to induce adoption of hygienic practices among rural Indians and aims to bring down the incidence of diarrhoea-reached 120 million people in over 50. 1. Direct Selling Division : HUL also runs Hindustan Unilever Network (HULN). through which it creates micro-enterprises for rural women-covers 15 states in India with over 45. the company embarked on a programme called Shakti. HUL is also running a rural health programme. Community services : In 2001. beauty products by Aviance. health products are marketed by AYUSH in collaboration with Arya Vaidya Pharmacy. home products by Lever Home.. a direct selling business arm.000 villages. 2.
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Flora. It evokes Unilever's origins in Port Sunlight and can represent a number of our brands. its people and values. .Evolution of the HUL Logo The previous logo represents the green and healthy scenario of the Indian economy.” begins with the sun – the ultimate symbol of vitality. showing that they add vitality in everything they do. All life . Slim·Fast and Omo all use radiance to 9 communicate their benefits. And the current logo expresses “the vitality at the heart of HUL brands.(SUN): Our primary natural resource. Each icon within HUL logo represents an aspect of their business.
it represents moisturizers or cream -(BEE): Represents creation.. care and need. the genetic blueprint of life and a symbol of bio-science. hard work and bio-diversity. Bees symbolize both environmental challenges and opportunities -(DNA): The double helix. Flower represents fragrance. pollination. When seen with the hand. and DNA the smallest . It is the key to a healthy life. The10 sun is the biggest ingredient of life.Contd. -(HAND & FLOWER): Hand is a symbol of sensitivity. It represents both skins and touch.
It suggests blending in flavors and adding taste. -(HAIR): A symbol of beauty and looking good. 11 . -(PALM TREE): A nurtured resource. Placed next to the flower it evokes cleanliness and fragrance. It produces palm oil as well as many fruits – coconuts and dates – and also symbolizes paradise.. -(SAUCES & SPREADS): Represents mixing or stirring. placed near the hand it suggests softness.Contd.
-(BOWL): A bowl of delicious-smelling food. It can also represent a ready meal. -(FISH): Represents food. -(SPICE & FLAVOURS): Represents chili or fresh ingredients.Contd. sea or fresh water. tasting and cooking. healthy and sparkling with energy 12 .. hot drink or soup -(SPOON): A symbol of nutrition. -(SPARKLE): Clean.
. It suggests a relief from daily chores. . -(RECYCLE): Part of our commitment to sustainability. -(BIRD): A symbol of freedom. and getting more out of life. -(TEA): A plant or an extract of a plant. 13 -(ICE CREAM): A treat. such as tea. Also a symbol of growing and farming -(LIPS): Represent beauty. pleasure and enjoyment. looking good and taste.
A transformational symbol. the snowflake represents freezing. freshness and vigor. . bubbles and fizz. -(FROZEN): The plant is a symbol of freshness. care and health. Liquid a reference to clean water and purity 14 . -(WAVE & LIQUID): Wave symbolizes cleanliness. -(CONTAINER): Symbolizes packaging .a pot of cream associated with personal care -(HEART): A symbol of love. -(PARTICLES): A reference to science. -(CLOTHES): Represent fresh laundry and looking good.
2. Product Portfolio . 15 .
. 16 .
Close up Deodorants: Axe. Rin. Product Profile . Lifebuoy. Breeze. Aviance Oral care: Pepsodent.HUL Personal wash: Lux. Liril. Wheel Skin care: Fair & Lovely. Dove. Rexona Laundry: Surf excel. Rexona Colour cosmetics: Lakme 17 . Vaseline.2. Pears. Ponds. Hamam.
Annapurna. Clinic Tea: Broke bond..Contd. Coffee: Bru Foods: Kissan. Knorr Ice cream: Kwality walls 18 . Lipton. Ayurvedic personal and health care: Ayush Shampoo: Sunsilk.
Product Segmentation at HUL 19 .
20 . Distribution Systems & Channels .3.
• The team comprises an exclusive sales force and exclusive redistribution stockists. its products were sold through wholesalers. 21 . reaching about 250 million consumers. • HUL had relied on its network of 2. through about 6000 sub-stockists. Sometimes wholesalers known as star sellers would hire a van and do some distribution on their own. Shopkeepers from these villages would travel to these wholesalers and to pick up their supplies as and when it suited them. For smaller villages with a population of less than 5.HUL has also revamped its sales organisation in the rural markets to fully meet the emerging needs and increased purchasing power of the rural population. under the charge of dedicated managers.000. HUL's distribution network in rural India already directly covers about 50.700 redistribution stockists and sub-stockists to supply products to stores in large villages.000 villages.
LUX .4. 22 . Pricing Strategy .
LUX 23 . Pricing Strategy .4.
Media Used .5. 24 .
Magazines. etc.5. Radio 25 . Media Used The various types of media used by HUL for Lux soaps are as follows : Televisions Print Media – Newspapers.
26 .6. Competitors .
18% Market shares External Competitor: Godrej consumers products limited (GCPL): 2nd Largest soap maker after HUL 9.75% growth in initial five months Brand: Superia. Nikhar Wipro: Brand: Santoor (No 1 in AP) and Chandrika ITC: 1.2% Market share Brands: Cinthol.. Internal Competitor: Lifebuoy: 1895. Fiama di wills and Vivel Sold in six states 27 . Fairglow.
Mysore Sandal Godrej no.Competitors of HUL SOAPS HUL brands Lux Rexona Breeze Lifebuoy Pears Dove Hamam Competitors brands Santoor. 1. Nirma Dettol Santoor Camay Margo 28 . Chandrika Cinthol.
HUL‟s SOAP MARKET SHARE 57% 55% 55% 52% 10% 9% 8% 8% 9% 5% 29 .
7. Promotional Activities . 30 .
Gold coin offer Buy 3 get 1 free Lux soap bar 25 gm free on every lux soap bar Providing gifts to retailers . Promotional Activities for LUX The various promotional activities done by HUL for Lux soap are given as follows.Holiday packages .7..Discount offers 31 .
32 .8. Famous Events done in Rural India .
offer better markups and sell goods on credit and take away a significant portion of business in a short span.8. it created a hub and spoke system and appointed sub-dealers who had the opportunity to serve villages in their vicinity. Famous Events done in Rural India 8. Smaller regional brands would come along. Through Project Streamline. 33 . HUL took its first tentative step to expand rural distribution.1 Project Streamline In the late 1990s.
000 villages.2 Project Shakti Starting 2001. touching the lives of over 600 million people 34 . Shakti aims to have 100. which now covers 15 states in India with over 45.000 Shakti entrepreneurs covering 500. where it used women entrepreneurs in distant villages to stock and sell its brands. it began expanding its reach through Project Shakti. It utilized the concept of self help groups Shakti also includes health and hygiene education through the Shakti Vani Programme.000 villages By the end of 2010.8.000 women entrepreneurs in 135.
2 shampoo sachet categorized itself as a luxury item for them.buoy soap.8. since a Rs. HUL. ponds. introduced Breeze 2 in 1. Indigence forced the rural community to use the same soap for hair and skin. priced at Rs. it came up with 75 gm soap cake and later launched 18 gm life. 2. Seeing that the rural retailers sell the cut lifebuoy cakes to the consumers. India‟s 16% contribution to the world population and 28% to world‟s hair shows the latter‟s role in accentuating the physical appearance of an individual. a multipurpose soap for hair and skin ! 35 .3 Operation Bharat Under “operation Bharat”. they introduced sachets of clinic plus. having taken a cue from this insight.close up and fairness cream to make sachet buying a habit for these consumers.
4 Lifebuoy Swasthya Chetna It spread information on how washing hands can keep diseases away. badges and medals to children who had made it a habit to wash hands regularly ( read saved “Lifebuoy” soap wrappers ) and a certificate to the children who had won these badges most often. • They returned to the villages after 2 months. offered toys.8. 36 . targeted a population of 5 crores in 15000 villages. It applied 2 approaches : • HUL employed Health Development Officers and Health Development Assistants who went to all the villages and educated the community through lectures and community meetings.
Vim. Lifebuoy and Close Up 37 .8. Fair & Lovely.5 Khushiyon Ki Doli „Khushiyon Ki Doli‟ is the first multi-brand rural engagement module started by HUL The main objective of the campaign was to reach out to media dark villages with HUL brand messages and to engage with consumers deeply to rapidly change brand adoption metrics. Sunsilk. Surf Excel. It involved various personal care and home care brands of HUL including Wheel.
Consumer Engagement: In the second step.. post the mohalla activity.Retail: Finally. . The events are conducted in the local language for small focused groups which is supposed to encourage greater engagement and involvement for the audience .Awareness: The first step is achieved through 4-5 teams of promoters who head to each village and invite the residents to gatherings that are termed „mohallas‟ to make them aware of the company and its products. the promoters go door-to-door and conduct consumer home visits to generate trials where they offer promotions to the consumers. The process of making contact includes three steps : . there is another team which visits all the shops in the village which ensures improved availability and visibility of the brands 38 .
9. Alternative Strategies . 39 .
Alternative Strategies Ayurvedic variant Lux kids special soap Target male customers Introduce Bhojpuri actors as Brand Ambassadors for the rural market with reference to their popularity ratio respectively. Riverside Hoardings 40 .
google.Sources- www.org www.valueresearch.wikipedia.com 41 .in www.com www.hul.
. Made by: Peakers Group Richa Archana Ujjwal Akhil 42 .