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S U B M I S S I O N O N 2 3 M A Y 2 0 0 9

Case Study on HindustanUnilever Limited

T E A M G 4 - 1 2

M E M B E R S :

  A T U L K O T H I Y A L

P R A D E E P R A V U N N Y  

S H I P R A B A N S A L

S H R I M A N K A L Y A N

 V A M S E E K R I S H N A  

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HUL – Company Profile

HUL, previously HLL

One of the largest consumer products company in India

“Most respected company in India for the last 25 years” –

 us ness or 

Diverse customer categories, many power brands andmultiple success stories

Backed by strong distribution network covering over 1 mretail outlets in India; and over 6.5 m outlets indirectly 

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Competitors

P & G – Whisper, Tide, Vicks …

Cavin Care – Fair Ever S inz … 

Marico – Saffola, Parachute…

Dabur – Honey, Chyavanprash, …

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Strategies for Success

Early-mover advantage – strong initial products andunexposed market

Understanding the customer perception and the Indianmarket

Successful M&A – Kissan, Brookbond, Lipton, TOMCO,Ponds

Caters to diverse customer segments

Penetration into the rural market – caters to the specificneeds of the customers, pricing and distribution, Project‘Sakthi’ and trainee program

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Strategies for Success

Product customization and categorization

 Advertisements and promotional campaigns – emotionalcatch

 

company’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

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Strategies for Success

Social cause – customers are concerned about society as well

Cause initiatives: Asha Daan, Ankur, Rural education,rural development

Product mix coupled with product differentiation (icecream segment)

Hindustan Lever Research Centre

- Market forecasting, Low response time to marketneeds/ changes/ competition, Educating customers

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Was HUL successful in all its products and strategies? NO

 Products that could not sustain/ succeed:

Moti Soap, Max Confectionaries, Modern Biscuits, Ayush, etc…

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Moti Soap – An analysis

Differentiation factors: Size (big), shape (pearl) and

the segment (premium)

Came under HLL’s bandwagon post-TOMCO merger

Moti had 2% market share in the premium segment

Inertia of success?

HLL failed to capitalize on the existing brand value

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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, Wrigley’s,…

Distribution network 

Uncompetitive margins

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Others

Marketing campaign used for Fair and Lovely wascontroversial; withdrawn

Other products that were not successful:

 Ayush, Annapurna, Impulse – Denim, Jai soaps, …

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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 hencethey had the scope to test market new products

Product categorization

Distribution strategies

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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.

 

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

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Learning…

4P + 3C; the importance of it in real world

Early mover advantage; inertia of success Triggering the consumer perception

Educatin the consumer 

Rural penetration

R & D and market research

Heavy investment towards branding

Emotional factor in campaigns

Innovation and continuous improvement

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Thank you

Questions?