• HUL was formed in 1933 as Lever

Brothers India Limited & later in late

2007
renamed as Hindustan Unilever Ltd.

• India's largest Fast Moving Consumer

Goods company & country's largest
exporters.
• HUL has employee strength of over 15,000 employees and contributes to indirect employment of over
52,000 people.

• The Anglo-Dutch company Unilever owns a 52% majority stake in Hindustan uniliver Limited.

• Hindustan Unilever's distribution covers over 1 million retail outlets across India directly and its
products are available in over 6.3 million outlets in the country.

• HUL holds 40 factories across India for manufacturing its diverse product range.

("Present stature", official website)

 Mission
To add Vitality to life.

“ We meet everyday needs for nutrition, hygiene, and personal care with brands that help people
feel good, look good and get more out of life.”

Vision
Unilever products touch the lives of over 2 billion people every day – whether that's through
feeling great because they've got shiny hair and a brilliant smile, keeping their homes
fresh and clean, or by enjoying a great cup of tea, satisfying meal
or healthy snack.

(Scribd 2010)
 2010

• Headed by Chairman-

Mr. Harish Manwani

&

CEO Mr. Nitin Paranjpe

• 5 Whole time Executive

Director

• 4 Independent Non -

Executive Director
(Companies official website)
 Two out of three Indians use Hindustan Unilever products.
From feeding your family to keeping your home clean and
fresh, our brands are part of everyday life.

Health,
hygiene
& beaut
y

Nutrition
Food

Beverages

Water Home
care
Personal
care
FINANCIAL
•Net Profit Margin % has increased in 2010 compared to previous year which shows there
ANALYSIS
was improvement in HUL’s operational efficiency.
•HUL have negligible financial risks as its debt-equity ratio is zero.
•The inventory Turnover Ratio is higher as compared to 2005 in year 2010, this indicates
HUL have good inventory management.

•The Debtor turnover ratio has decreased in 2010 This indicates that HUL’s debt
recovery system is not efficient. And this is not good for liquidity.

•The EPS has declined in year 2010, this indicates HUL has earned lesser profits
for shareholders in this year compared to last year.
• Personnel planning and vacancy announcement
Internet, Online-job portal ,Newspaper

• Nature of Application form

2 different forms one for entry levels another for experienced people.
Brands & Development, Supply Chain management, Human Resources, Finance, Information
Technology, Customer Management.

• Recruiter’s qualification

• Channels of recruitment
External recruitment channel. 
Internal recruitment channel - For senior posts in Brand Management.

• Recruitment- Constraints and challenges

HR Policy restrict the number of part-time employees.
A limited pool of potential applicants.
 • Reception of application
SELECTION
PROCESS • Evaluating reference and biographical data

• Employment test

• Assessing candidate through interview

• Cognitive ability test

• Physical ability test

• Work samples

• Hiring decision
• On the job Training

•Strengthening Employability

•Professional skills

•Continual update

• Personal development
 PEST ANALYSIS OF FMCG INDUSTRY
POLITICAL
 India abolished licensing in 2001 for all food and agro-processing industries.
 Government has reduced excise duties & import duty rates substantially.
 Automatic foreign investment up to 100 foreign equity is allowed in food industry .
 Now 100% export oriented units can be setup by government approval.
 The use of foreign brand names is now freely permitted.
 Transportation and infrastructure development in rural areas helps in distribution network.
(www.docstoc.com)

ECONOMIC:
Increase in GDP Rate.
There is an increase in personal disposable income.
The FMCG due to the steady rise in prices saw an industry growth by 12% in fiscal year 2009.
Average Indian spending on groceries and personal care is 48%. Groceries 40% & personal care 8%
In 2010 the FMCG industry is slated for a growth of 15% compared with that of 2009.
The Indian FMCG sector with a market size of US$13.1 billion is a 4th largest sector of Indian.

(tradingeconomics.com)
 PEST ANALYSIS OF FMCG INDUSTRY
SOCIAL/CULTURAL:

 About 200 million people are expected to shift to processed and packaged food by the end of 2010.
There is an increase is spending pattern in Indian FMCG market.
 There is an increase in disposable income, of household mainly because of increase in nuclear family, has
leads to growth rate in FMCG goods.
 People are becoming conscious about health and hygienic.
 Consumer and now looking at “Money for Value” rather than “Value for Money”.
Consumers are switching from economy to premium product.
 71 per cent of Indian take notice of packaged goods labels containing nutritional information.
(projectbaba.com)

TECHNOLOGICAL:
 Technology has been simplified and available in the industry.
 Foreign players helps in high technological development
(Scribd.com)
 PORTER’S FIVE FORCES ANALYSIS
BUYER POWER:
•This is because in FMCG industry the switching costs of most of the goods is their and there is always threat of buying
one product over other.
•Verdict: strong buyer power of consumers

SUPPLIER POWER
•The bargaining power of suppliers of raw materials and intermediate goods is not very high.
•There is ample number of substitute suppliers available and the raw materials are also readily available
•Verdict: limited supply power

THREAT OF NEW 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.
• Verdict: low threat of new entrants.
 
THREAT OF SUBSTITUTES:
 
• High threat of substitutes.
 
DEGREE OF RIVALRY

• Moreover competitors use all sorts of tactics from intensive advertisement campaigns to promotional stuff and price
wars etc. so overall the intensity of rivalry is very high.

(Scribd 2010)
SWOT ANALYSIS
STRENGHTS
• Subsidiary of Unilever Group
• Largest market share
• Strong product portfolio
•Strong distribution network
• Strong R&D
• Highly skilled human resource
OPPORTUNITIES
• Large domestic market
• Untapped rural Market:
• Changing Lifestyles
• Diversification
• Opportunity in Food Sector
WEAKNESS
•Intense Competition
•Losing Market Share
• High Advertising Costs
• Changing Consumption Patterns
THREATS
• Increasing costs of raw material
• ITC Entry
• Tax & Regulatory Structure
(Business week & Economic times)
 LIFEBUOY SOAP-BUSINESS MODEL

Value Proposition: Lifebuoy provides total protection and positioned as “health and hygiene” soap. The brand USP
is ‘Lifebuoy provides 100% better protection from germs as compared to ordinary soaps.’

(Scribd)
BUOY SOAP-BUSINESS MODEL……….
Competitive Strategy : Focused cost leadership strategy & price
differentiation strategy followed in case of lifebuoy soap.

HUL uses intensive distribution strategy for Lifebuoy .

(Scribd)
EVER REGION WISE STATATICS-2009
The Americas
Operating profit (millions): €1 857
Turnover (millions): €12 743
Purchases of goods and services (millions): €9 136
Employees (year end): 40 750
Western Europe
Operating profit (millions): €1 255
Turnover (millions): €11 947
Purchases of goods and services (millions): €8 850
Employees (year end): 27 710
Asia, Africa and Central & Eastern Europe
Operating profit (millions): €1 908
Turnover (millions): €15 133
Purchases of goods and services (millions): €10 563
Employees (year end): 94 540

(Unilever.com)
UNILEVER’S INTERNATIONAL GROWTH STRATEGIES

Targeted one market at a time

Unilever firstly entered in foreign market to compete internationally by entering just one or select few foreign

markets.

Focus on Global Strategy

In entering and competing in foreign markets for its cosmetics and toiletries product, Unilever follows a global

strategy, also called by a think-global and act-global strategy

Developing Regions

Unilever is increasing its efforts to build on its long-established local roots in developing regions through its well-

established distribution network.

Cross-market subsidization

While entering the emerging-country market Unilever prepare to compete on the basis of low prices. Unilever

pursue this strategy because consumers in emerging markets are often highly focused on price.

(wordpress.com)
 Recommendations
• HUL should allocate its advertisement budgets more evenly among the major cities and small towns to
compete with the international as well as local competitors alike.
•HUL should focus on market research and product development more. This is very crucial activity if the
company wants to see steady growth in future. Innovation is the key to success here. HUL should seriously start
developing improved products to cater the emerging needs of the consumers.
• HUL should not use price-cuts to compete with its key rivals like P&G, instead it should promote its power
brands as premium and value added products for the following reasons:
 
Price competition among rival firms is stern and it is not possible for HUL to
maintain its profit margins without compromising on product quality.
 
Products of other firms are quite similar to what HUL is offering.
 
Buyers have low switching costs and thus low brand-loyalty.

There are few ways of differentiating a product from other than developing a new
one.
Presented By:
 Neha Malik