The Journey from HLL to HLN

Unilever is a Worldwide Leader in Consumer Goods Hindustan Lever Limited - Unilever s Branch in India HLL is Now Known As Hindustan Unilever Limited (HUL) We will Discuss the Foray of HLL Into Network Marketing Hindustan Unilever Network is HLL s Network Marketing Branch Comparisons with Other Multi-level Marketing Brands as Well

India's Largest Fast Moving Consumer Goods Company HLL is also One of the Country's Largest Exporters The Mission that Inspires HLL's Over 15,000 Employees, including Over 1,300 Managers, is to Add Vitality to Life Meets Everyday Needs for Nutrition, Hygiene, and Personal Care with Brands that Help People Feel Good, Look Good a nd Get More Out of Life. HLL Made its Foray into Direct Marketing in 1996

` ` ` ` The simplest explanation of NETWORK MARKETING is that it is a method of marketing that utilizes independent representatives to reach potential customers that a company otherwise would not reach with traditional online or offline marketing methods. Referral Marketing. Examples of Network Marketing in India ‡Tupperware ‡ Amway ‡ Avon ‡ Oriflame . Direct selling is a home based business with almost negligible investment and one can earn income just by investing few hours.Direct Selling. and Pyramid Selling. Network marketing is also known as Multi Level Marketing.

Aviance is sold under a variety of different markets around the world including Asia. Bangladesh.Aviance is a beauty brand. produced by the Unilever group. Latin America and the Middle East and is also sold via Hindustan Unilever's Multi-level marketing division Hindustan Unilever Network in India. Sri Lanka. . primarily aimed at women.

Tupperware.Estimated to Be Worth More Than Rs. ‡Direct Selling Companies Generally Deal in Daily-Use Products Ranging From Cosmetics.15 Billion as of Early 2003 ‡Direct Marketing Industry in India . Amway India. .Growth Rate of 25% ‡Some of the Direct-Selling Companies in India are Eureka Forbes. Personal Hygiene . etc.‡Direct Marketing Industry .HealthCare and Kitchenware.

BUT to become the member of Aviance one has to purchase from HULN's wide range of products for a minimum of Rs 600 and then fill the application form provided. TUPPERWARE Tupperware gives dicount(20-30%) on the market price which Aviance does not gives.AMWAY The only real upside to this particular MLM is that there is no joining fee to become a member ± simply a screening process to make sure that you¶re the "right type" of candidate is carried out. .

AYUSH The ayurvedic power brand ayush was initially marketed through the traditional dealer network. . Later on it tried to target its customer through HLN and HLN believd that it can be done trough lowering its adv. The company had targeted annual sales of over 2bn in 1st two years of its inception in 2000 but the brand faild to achieve its targets. expenditure through push strategy.

.‡HLL Entered the Direct Marketing Scene in 1999 under the Brand Name Aviance ‡Aviance Focused On Personal Care Products ‡Women Acted as Consultants For It ‡Though Aviance was was not a roaring success in absolute sales In number it layed the foundation for HLN which was launched on January 27th 2003.

Through Value Added Services like Expert Advice and Home Delivery .‡ ‡ ‡ ‡ Lever Home Was Another Direct Marketing Brand of HLN which included kitchen care.HLN Aimed to be the Most Preferred Network Company HLL Entered Into Direct Marketing When It Faced a Lot of Competition From Other Companies HLN Formed in 2003 to Boost Sales . home care & laundry care products.

REASONS TO JOIN HINDUSTAN LEVER NETWORK .

000 employees of HUL and its group companies is to add vitality to life. HUL touches the lives of 2 out of every 3 Indians. hygiene and personal care with brands that help people feel good.20. To meet the everyday needs for nutrition. .1. Like its parent Company. The Hindustan Unilever Advantage Hindustan Unilever Network gets its unmatched strength from Hindustan Unilever Limited (HUL) is India's No. 1 Fast Moving Consumer Goods (FMCG) company.239 crores. with a turnover of about Rs. The company has invested millions in R&D with 1000 scientists working round the clock at over 70 Innovation Centres worlwide. look good and get more out of life. the mission that inspires the 40. Unilever.

HUL products are distributed through a network of over 7500 redistribution stockists to an astronomical number of towns and villages in India.Over 50 crore satisfied enjoy the diverse product range of HUL. . manufactured in 100 factories and involve more than 2000 suppliers and associates.

Break-through Compensation Plan HULN's revolutionary Compensation Plan is the very foundation of success in network marketing. HULN's unique Compensation Plan ensures: . . and recognised for their achievements. house and more! . It takes into account today's realities and the latest trends in compensation planning across the globe. rewarded for their performance. employee are trained to succeed. . National and International travel. Unmatched Earning Opportunity HULN's Unique. At HULN it is said that. A steady and growing source of income.2. Rewards like car.

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Laundry Care & Oral Care Aviance . Lever Home .Home Care.3. Cosmetics & Hair Care Range DIY .Skin Care.Age Defense. These products reflect HUL's understanding of evolving customer needs and Unilever's huge investments in technology worldwide. Unmatched Product Range: Hindustan Unilever Network offers a wide range of high-quality. available exclusively through trained HULN Consultants and not to be sold in the retail market. Each product available in the Hindustan Unilever Network is a symbol of global trust and assurance.Premium Personal Care Range for Men Ayush Therapy .Health Care & Personal Care Aviance Prestige . high-performance products. Absolute White and Men's Solutions .

Products that everyone needs. HULN's range includes products that have been customised to Indian needs . every hour.4. Unparalleled Physical Presence In barely 5 years since inception. . Unbeatable Value-for-money Unlike with other Networking Companies. uses and most importantly. HULN has grown to a strength of over 5 lakh Consultants across 500 towns and cities in India. can afford! No other Direct Selling company offers such a wide range of value-for-money products. HULN's on-line transaction system can help you track your network performance every minute. 5. Backed by many offices and service centres across the nation ensure that HULN products and services are always within your reach. What's more.

Personal Transformation & Enrichment Joining the Network does not change just your professional life it enriches your personal life as well. HULN hones your confidence levels and leadership skills to help you evolve into a finer personality.6. better lifestyle. quality time to devote to friends and family. . Better social contacts. etc.

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Tea. Home Care. Coffee Under the Name of Nutrium Plus . High-Performance Products Were Sold ‡Started Out With Personal Care Products ‡Later Forayed Into Kitchen Care. and Laundry Care Products Under the Brand Lever Home and Value-Added Food Products Like Sauce.PRODUCT ‡175-200 High-Quality.

PLACE   From a coverage of 400 Cities in the Initial Year. HLN Targeted Reaching 1500 Cities in Two Years Targeted the Urban Market in the Initial Phase .

PRICE   Consultants Could Buy Products at 20% Lesser Rates Than the Original Prices The Prices Were Justified For All the Strata of the Society .

PROMOTION   Less Of Advertising Branding and Advertising Done By Consultants Who Acted as Brand Ambassadors as Well as Salespersons .

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Strengths ‡HLN Model Focused on Building Male and Female Entrepreneurs Through Active Partnership ‡New Products In Different Categories Every Two Months ‡Extensive Training Programs For Its Consultants ‡Less Budget on Advertising as Consultants Acted as Brand Ambassadors ‡Gained a Lot of Popularity Amongst the Woman Consumers .

Weaknesses ‡ ‡ ‡ ‡ No or Less Job Security For the Consultants Minimal Advertising The Name Aviance Did Not Lead To Expected Success so was Changed to HLN to Utilise the Brand s Popularity Aviance Range of Products Were Meant For the Premium Section of Society and Were Being Sold by the Middle-Class Population .

Nutrium Plus (Tea. LeverHome (for kitchencare. laundrycare).g. Sauces. Avon Beauty Products . Modicare.Opportunities ‡To Extend Its Reach Amongst the Masses (Even to the Men in the Society) ‡The Freedom to Launch New Products Apart From Those Being Sold e. Value-Added Food Items) Threats ‡Other Direct Marketing Firms Like Amway.

` Threats ‡ Other MLM strategic firms looking to invade the market place. .

Analysts said that this favourable growth rate came from immense success of few major players like Amway and the industry itself did not offer many opportunities.Industry analysis shows that the period between the late 1990s and early 2000s witnessed rapid growth in the direct selling industry. which followed more than 25% year on year growth. In this atmosphere it¶s an open question whether HLN will succeed in direct selling. A number of companies entered the direct sellimg segment to cash in on the growing opportunity but the industry has its own share of problems. .

Problem of minimal advertising strategiesµ that most MLM companies followed. Being a distributor or a salesperson in a multilevel marketing organisation did not translate into job security.1. . This made buying decision more complex 3. The issue of distributers buying product only for self consumption. the rate was 50-60% of total volume traded. A significant percentage who joined in the initial frenzy returned the product kits within the first few months 2.

Company sources also say that HLN has learnt from the experience of avianceand is now better equipped to make strategically more sound decisions than in the past. They believed that the networking venture will leverage the goodwill that the parent company has established in India for more than hundred years. .The failure of aviance raised many doubts about HLL¶s competence but company sources are optimistic. They also feel that once the market is aware that the products come from Hindustan Lever separate marketing efforts will not be required to attain high sales.

‡HLN is the Leading Player Amongst All the FMCG Brands and Has Done Better Than Other MLM Brands ‡Although Aviance Failed to Succeed. HLL Has Learned From This Experience and Launched HLN and succeeded in the Network Marketing Sphere ‡The sub-brands of HLL Like Lux or Lakme are More Popular Than HLL Itself ‡HLL Needs to Use its Knowledge of So Many Years in the Indian Market to Be the Leader in Both the Direct Selling Market as Well as the Retail Market .

‡Sana Ejaz Khan ‡Simran Johar ‡Shweta Singh ‡ Surbhi Rajpal .

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