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Hindustan Unilever Limited

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Company Profile HUL, previously HLL One of the largest consumer products company in India “Most respected company in India for the last 25 years” – Business World Diverse customer categories, many power brands and multiple success stories Backed by strong distribution network covering over 1 m retail outlets in India; and over 6. 5 m outlets indirectly Competitors P & G – Whisper, Tide, Vicks Cavin Care – Fair Ever, Spinz Marico – Saffola, Parachute… Dabur – Honey, Chyavanprash, Strategies for Success Early-mover advantage – strong initial products and unexposed market Understanding the customer perception and the Indian market Successful M&A – Kissan, Brookbond, Lipton, TOMCO, Ponds Caters to diverse customer segments Penetration into the rural market – caters to the specific needs of the customers, pricing and distribution, Project ‘Sakthi’ and trainee program Product customization and categorization Advertisements and promotional campaigns – emotional catch Able to keep up the brand image; carried the parent ompany’s brand well.Inertia of success.

CEO factory – leadership building potential Export market – Personal care and F&B sectors Capitalized on its FMCG experience in new ventures Social cause – customers are concerned about society as well Cause initiatives: Asha Daan, Ankur, Rural education, rural development Product mix coupled with product differentiation (ice cream segment) Hindustan Lever Research Centre – Market forecasting, Low response time to market needs/ changes/ competition, Educating customers Was HUL successful in all its products and strategies?

No Products that could not ustain/ succeed: Moti Soap, Max Confectionaries, Modern Biscuits, Ayush, etc… Moti Soap – An analysis Differentiation factors: Size (big), shape (pearl) and the segment (premium) Came premium segment Inertia of success? HLL failed to capitalize on the existing brand value Modern and Max Modern Energy Biscuits : Soya as ingredient Already a highly competed category – Britannia and Parle-G Max Confectionaries: Late entrant.

Parrys, Perfetti, Nestle, Wrigleys,… Distribution network Uncompetitive margins Others Marketing campaign used for Fair and Lovely was controversial; withdrawn Other roducts that were not successful: Ayush, Annapurna, Impulse – Denim, Jai soaps, Customer Profiles Customer profiles are ever changing HLL upgraded their strategies to cope up with this Product customization Lifestyle products Good number of dependable products – and hence they had the scope to test market new products Product categorization Distribution strategies Brand and Financial Position Financial Performance: Reasons for 2004 fall: Squash, increased ad exp. , Stock returns of RS. 15 crore.Share prices: 2004 – RS. 143. 2008 – RS. 252. post 2004, HUL ame back with increased sales records.

Maintains a healthy position amidst stiff competition Brand Performance: Top brand in terms of FMCG sector and also highly sought after by marketing professionals in India Most respected Company in India for the past 25 years Learning… 4P + 3C; the importance of it in real world Early mover advantage; inertia of success Triggering the consumer perception Educating the consumer Rural penetration R & D and market research Heavvy investment towards branding Emotional factor in campaigns Innovation and continuous improvement.

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