Hindustan Unilever Limited

By Group 4

Registration no.: 20, 24, 26, 28, 30, 32, 13, 49

SKIN CARE PRODUCTS

INTRODUCTION TO HUL

• Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company with a heritage of over 80 years in India and touches the lives of two out of three Indians.

• Date of Establishment 1933

• Headquarters Mumbai

• Chairman Mr. Harish Manwani

• CEO Mr. Sanjeev Mehta

With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pureit.

The Company has over 16,000 employees and has an annual turnover of INR 27408 crores (financial year 2013 - 2014). HUL is a subsidiary of Unilever, 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 €49.8 billion in 2013. Unilever has 67.25% shareholding in HUL.

Competitors (in creams and soaps)

HUL Skin care Products

Category wise Competition

Market share of Soaps

46%

10%

9%

8%

15%

3%

9%

HUL

GCPL

Reckitt Benckiser

Wipro

Nirma

ITC

Others

Personal Wash

HUL’s Brands Competing Brands

Lux Rexona Breeze Lifebouy Pears Dove Hamam

• Godrej No.1

• Cinthol• Fair

Glow• Dettol• Santoor• Nirma• Vivel• Fiama Di

Wills• Margo

Category wise Competition

HUL’s Brands Competing Brands

Fair & Lovely Pond’s Vaseline Lakme

Fairever Boroplus Nivea Garnier

Light Olay Neutrogena

Skin Care Creams

Market share of Skin Care Creams

49%

8%

15%

7%

27%

HUL

Emami

Nivea

Cavinkare

Others

Results for HUL September Quarter 2014

• In Skin Care, Fair and Lovely and Pond’s delivered volume led double digit growth. Fair and Lovely continued to build momentum post its re-launch in SQ’13 while Pond’s growth was led by premium skin lightening and talc. The facial cleansing portfolio sustained high growth.

• In Skin Cleansing, growth was driven by Lifebuoy, Lux and Dove. The liquids portfolio delivered another strong quarter led by Lifebuoy Hand wash.

Latest Developments

• Intelligent deodorant

• In partnership with key suppliers, our scientists developed a new anti-perspirant – Rexona Activreserve – whose special micro-capsules of odour protection are activated when the body responds to stressful situations.

• Skin lotion: delivering moisture where it’s needed

• The key ingredient – Glycerine does not penetrate deep enough and provides too little moisture at the surface.

• Unilever set about developing a moisturiser to change this. The result was Stratys-3, a combination of three special ingredients. Stratys-3 forms the basis of Vaseline Sheer Infusion. While we continue to use Glycerol to moisturise the skin’s core, we combine this with Hydroxyethyl Urea to hydrate the deeper layers. All of which allows Stratys-3 to infuse and suspend moisture in a whole new way.

Future Trends

• Looking to the future

• By partnering with the best ageing studies in the world and using the latest scientific techniques, Unilever aims to be the first to identify and understand important insights into ageing and health to direct further internal research.

• Unilever products are used by millions of people around the world each and every day. As such, we are ideally placed to promote products that could help reduce the impact of everyday ‘wear and tear’ that our bodies experience.

• Finding ways to utilise the knowledge that will be generated by the project will be a huge challenge. But it would help produce future product and business innovations that will effectively help people live healthier for longer.

SWOT analysis

Strength

Weakness

Threats

Opportunities

Strengths

• Largest market share.

• Largest exporter of country

• Strong distribution network

• HURC since from 1958 which has 200 highly qualified scientists and technologists.

• Reaching out 135000 villages & directly reaching to rural consumer through there SAKTI program .

• Has the best marketing talent in the industry.

• Deep roots in local culture & great understanding of consumer needs

• Strong position in most of the categories of its presence

Weakness

• HUL is steadily losing its market share is segment including shops, hair ,oral and skin care as economic growth slows and competition increases.

• Losing market share in most of the categories due to competitors’ strong brands

• Mimic Brands

• High Advertising Costs. Increase in Ad spending, which may affect the margins

• Declining Export levels

Opportunities

• It can switch to new brands in segments like confectionary , medicines etc.

• Diversification

• Large domestic market

• Large untapped market available., especially the rural areas

• Changing Lifestyles & Rising income levels

• Export potential- expansion of horizons towards more and more countries

• Opportunity in food sector

Threats

• HUL is facing increased competition with the entry of cigarette maker and hotel company ITC ltd.

• Also facing competition from P & G.

• Increasing costs of raw material

• Losing market share in most of the categories of its presence

• Intense and increasing competition from local as well as MNC players

• Competition from its own brands

• Tax & Regulatory Structure