Marketing Stratergies of HUL

8/13/2019 Marketing Stratergies of HUL

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RATION

MARKETING STRATERGIES OFHINDUSTAN UNILEVER LIMITED

SUBMITTED IN PARTIAL FULLFILLMENT OF THE REQUIREMENTS FOR THE

AWARD OF THE M.COM DEGREE OF

MASTER IN COMMERCE -1MANAGEMENT)SUBMITTED TO

UNIVERSITY OF MUMBAILALA LAJPAT RAI COLLEGE, MAHALAXMI, MUMBAI

SUBMITTED BY

ZISHAN SIDDIQUI Roll no: 670

SUPERVISED BYPROF. RAHUL SHETTY

PROF. Dr. POOJA RAMCHANDANI

15thOctober 2013


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CERTIFICATE

I hereby certify that the work which is being presented in the

M.Com internal project report entitled MARKETING STRATERGIES

OF HINDUSTAN UNILEVER LIMITED in partial fulfilment of the

requirements for the award of the Master of Commerce and

Economics, in MANAGEMENT and submitted to the LALA

LAJPATRAI COLLEGE OF COMMERCE AND ECONOMICS, Mahalaxmi,

Mumbai-400034 is an authentic record of my own work carriedout under the supervision of PROF. RAHUL SHETTY &

PROF.Dr.POOJA RAMCHANDANI. The matter has not been

presented by me for the award of any other degree elsewhere.

SIGNATURE OF THE STUDENT:

SIGNATURE OF SUPERVISORS:

INTERNAL EXAMINER:

EXTERNAL EXAMINER:

COLLEGE STAMP PRINCIPAL


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acknowledgement

I would like to place on record my deep sense of

gratitude to Prof. RAHUL SHETTYof m-com departmentfor her generous guidance help and useful suggestions

I am extremely thankful to Dr.Suryakant Kasune co-ordinator and Principal Neelam Arorafor providing meinfrastructural facilities to work in without which this

work would not have been possible


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Contents

INTRODUCTION .............................................................. 5

HINDUSTAN UNILIVER LIMITED ....................................... 6

HISTORY OF HINDUSTAN UNILEVER LTD ......................... 7

Vision ........................................................................ 9

A clear direction ................................................... 9

BRANDS .................................................................... 10

AWARDS AND RECOGNITION ........................................ 13

MARKETING STRATERGIES OF HINDUSTAN UNILEVER

LIMITED ...................................................................... 16

Unilever takes HUL strategies like small packs,

cheaper variants to developed markets ................ 33

CONCLUSION ................................................................ 44

BIBLIOGRAPHY ............................................................ 45


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INTRODUCTION

Hindustan Unilever Limited (HUL) is an Indianconsumer

goodscompany based inMumbai, Maharashtra. It is owned by

Anglo-Dutch companyUnileverwhich owns a 67% controllingshare in HUL. HUL's products include foods, beverages,cleaning

agentsandpersonal care products.

HUL was established in 1933 as Lever Brothers India Limited and,

in 1956, became known as Hindustan Lever Limited, as a result of

a merger betweenLever Brothers,Hindustan Vanaspati Mfg. Co.Ltd. and United Traders Ltd. It is headquartered inMumbai,India
http://en.wikipedia.org/wiki/Fast_moving_consumer_goodshttp://en.wikipedia.org/wiki/Fast_moving_consumer_goodshttp://en.wikipedia.org/wiki/Fast_moving_consumer_goodshttp://en.wikipedia.org/wiki/Fast_moving_consumer_goodshttp://en.wikipedia.org/wiki/Mumbai,_Maharashtrahttp://en.wikipedia.org/wiki/Mumbai,_Maharashtrahttp://en.wikipedia.org/wiki/Unileverhttp://en.wikipedia.org/wiki/Unileverhttp://en.wikipedia.org/wiki/Unileverhttp://en.wikipedia.org/wiki/Cleaning_agenthttp://en.wikipedia.org/wiki/Cleaning_agenthttp://en.wikipedia.org/wiki/Cleaning_agenthttp://en.wikipedia.org/wiki/Cleaning_agenthttp://en.wikipedia.org/wiki/Personal_care_productshttp://en.wikipedia.org/wiki/Personal_care_productshttp://en.wikipedia.org/wiki/Personal_care_productshttp://en.wikipedia.org/wiki/Lever_Brothershttp://en.wikipedia.org/wiki/Lever_Brothershttp://en.wikipedia.org/wiki/Lever_Brothershttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Lever_Brothershttp://en.wikipedia.org/wiki/Personal_care_productshttp://en.wikipedia.org/wiki/Cleaning_agenthttp://en.wikipedia.org/wiki/Cleaning_agenthttp://en.wikipedia.org/wiki/Unileverhttp://en.wikipedia.org/wiki/Mumbai,_Maharashtrahttp://en.wikipedia.org/wiki/Fast_moving_consumer_goodshttp://en.wikipedia.org/wiki/Fast_moving_consumer_goods


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and employs over 16,500 workers, whilst also indirectly helping

to facilitate the employment of over 65,000 people. The company

was renamed in June 2007 as Hindustan Unilever Limited.

Lever Brothers first commenced operations in India in the summer

of 1888, when crates full of Sunlight soap bars, embossed with

the words "Made in England by Lever Brothers" were shipped to

the Kolkata harbour and it began an era of marketing branded

Fast Moving Consumer Goods (FMCG).[4]

Hindustan Unilever's distribution covers over 2 million retail

outlets across India directly and its products are available in over

6.4 million outlets in the country. As per Nielsen market research

data, two out of three Indians use HUL products.

HINDUSTAN UNILIVER LIMITED

Hindustan Unilever Limited (HUL) is India's largest Fast Moving

Consumer Goods Company with a heritage of over 75 years in

India and touches the lives of two out of three Indians.

HUL works to create a better future every day and helps people

feel good, look good and get more out of life with brands and

services that are good for them and good for others.

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
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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, Ponds, Vaseline, Lakm, Dove, Clinic Plus, Sunsilk,Pepsodent, Close-up, Axe, Brooke Bond, Bru, Knorr, Kissan,

Kwality Walls and Pureit.

The Company has over 16,000 employees and has an annual

turnover of around Rs.25, 206 crores (financial year 2012 -

2013). HUL is a subsidiary of Unilever, one of the worlds leading

suppliers of fast moving consumer goods with strong local rootsin more than 100 countries across the globe with annual sales of

51 billion in 2012. Unilever has about 52% shareholding in HUL.

HISTORY OF HINDUSTAN UNILEVER LTD

It was in the summer of 1888 that Unilever of England first

marketed Sunlight soap in India. This was followed by brands

like Pears and Vim. Vanaspati was launched in 1918 and

Dalda came to the market in 1937.

In 1931, Unilever set up its first Indian subsidiary,

Hindustan Vanaspati Manufacturing Company, followed by

Lever Brothers India Limited (1933) and United Traders


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Limited (1935). These three companies merged to form HUL

in November 1956.

A number of prominent companies came into the HUL fold as

result of Unilevers international acquisitions. These included

Brooke Bond (1984), Lipton (1972) and Ponds (1986).

In 1993, Tata Oil Mills Company (TOMCO) merged with HUL.

Two years later, HUL and yet another Tata company, Lakme

Limited, formed a 50:50 joint venture, Lakme Lever Limited.

Subsequently in 1998, Lakme Limited sold its brands to HUL

and divested its 50 per cent stake in the joint venture to the

FMCG giant.

HUL formed a 50:50 joint venture with the US-based

Kimberly Clark Corporation in 1994, Kimberly-Clark Lever

Ltd, which markets Huggies diapers and Kotex sanitary pads.

HUL has also set up a subsidiary in Nepal, Nepal Lever

Limited (NLL), and its factory represents the largest

manufacturing investment in the Himalayan kingdom. In a

historic step, HUL picked up 74 per cent of the equity of

Modern Foods from the Indian government.


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In 2002, HUL acquired the government s remaining stake in

Modern Foods.

FMCG major Hindustan Unilever Limited (HUL), formerly

known as Hindustan Lever Limited, employs 36,000 people,

including over 1,350 managers. It is one of the earliest MNCs

to have entered India

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.

A clear direction

The four pillars of our vision set out the long term

direction for the company where we want to go

and how we are going to get there:

We work to create a better future every day

We help people feel good, look good and get more

out of life with brands and services that are good

for them and good for others.

We will inspire people to take small everyday actions that can add

up to a big difference for the world.


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We will develop new ways of doing business with the aim of

doubling the size of our company while reducing our

environmental impact.

We've always believed in the power of our brands to improve thequality of peoples lives and in doing the right thing. As our

business grows, so do our responsibilities. We recognise that

global challenges such as climate change concern us all.

Considering the wider impact of our actions is embedded in our

values and is a fundamental part of who we are

BRANDS

HUL is the market leader in Indian consumer products with

presence in over 20 consumer categories such as soaps, tea,

detergents and shampoos amongst others with over 700 million

Indian consumers using its products.

Eighteen of HUL's brands featured in the ACNielsen Brand Equitylist of 100 Most Trusted Brands Annual Survey (2012), carried out

by Brand Equity, a supplement ofThe Economic Times.

The Most Trusted Brands from HUL in the top 100 list (their

rankings in brackets) are: Clinic Plus (4), Lifebuoy (10), Fair &

Lovely (11), Rin (12), Surf Excel (13), Lux (14), Pepsodent (17),

Closeup (19), Ponds (20), Sunsilk (26), Dove (37), Vim (43), Pears

(79), Lakme (81), Vaseline (86), Wheel (87), Hamam (95) and

Rexona (96).

The latest launches for Hindustan Unilever include: Surf Excel

Easywash; Lakm eyeconic range; Vim Anti Germ bar;Pureit

Marvella UV with Advance Alert System; TRESemm: For Salon

style hair at home everyday; Clinic Plus: Milk Protein Formula

A++; Comfort 1 Rinse; Bru Exotica Guatemala; Closeup: Deep
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Action; Dove Hair Fall Rescue Treatment; Taaza: Taazgi bhari

chaai, dimaag khul jaaye.

The company has a distribution channel of 6.3 million outlets and

owns 35 major Indian brands. Its brands include:

Food brands: Annapurna salt and atta

Bru coffee

Brooke Bond(3 Roses, Taj Mahal, Taaza, Red Label) tea

Kissan squashes, ketchups, juices and jams

Liptontea

Knorrsoups & meal makers and soupy noodles

Kwality Wall'sfrozen dessert

Modern Bread,ready to eat chapattis and other bakery items

Magnum (ice cream)

Homecare Brands ActiveWheeldetergent

CifCream Cleaner

Comfortfabric softeners

Domestosdisinfectant/toilet cleaner

Rindetergents and bleach

Sunlight detergent and colour care

Surf Exceldetergent and gentle wash

Vimdishwash

Magic Water Saver

Personal Care Brands: Aviance Beauty Solutions
http://en.wikipedia.org/wiki/Brooke_Bondhttp://en.wikipedia.org/wiki/Liptonhttp://en.wikipedia.org/wiki/Liptonhttp://en.wikipedia.org/wiki/Knorr_(brand)http://en.wikipedia.org/wiki/Knorr_(brand)http://en.wikipedia.org/wiki/Kwality_Wall%27shttp://en.wikipedia.org/wiki/Kwality_Wall%27shttp://en.wikipedia.org/wiki/Modern_Food_Industrieshttp://en.wikipedia.org/wiki/Modern_Food_Industrieshttp://en.wikipedia.org/wiki/Magnum_(ice_cream)http://en.wikipedia.org/wiki/Magnum_(ice_cream)http://en.wikipedia.org/wiki/Wheel_(detergent)http://en.wikipedia.org/wiki/Cifhttp://en.wikipedia.org/wiki/Cifhttp://en.wikipedia.org/wiki/Comfort_(fabric_softener)http://en.wikipedia.org/wiki/Comfort_(fabric_softener)http://en.wikipedia.org/wiki/Domestoshttp://en.wikipedia.org/wiki/Domestoshttp://en.wikipedia.org/wiki/Surf_(detergent)http://en.wikipedia.org/wiki/Surf_(detergent)http://en.wikipedia.org/wiki/Surf_Excelhttp://en.wikipedia.org/wiki/Surf_Excelhttp://en.wikipedia.org/wiki/Vim_(cleaning_product)http://en.wikipedia.org/wiki/Vim_(cleaning_product)http://en.wikipedia.org/wiki/Vim_(cleaning_product)http://en.wikipedia.org/wiki/Surf_Excelhttp://en.wikipedia.org/wiki/Surf_(detergent)http://en.wikipedia.org/wiki/Domestoshttp://en.wikipedia.org/wiki/Comfort_(fabric_softener)http://en.wikipedia.org/wiki/Cifhttp://en.wikipedia.org/wiki/Wheel_(detergent)http://en.wikipedia.org/wiki/Magnum_(ice_cream)http://en.wikipedia.org/wiki/Modern_Food_Industrieshttp://en.wikipedia.org/wiki/Kwality_Wall%27shttp://en.wikipedia.org/wiki/Knorr_(brand)http://en.wikipedia.org/wiki/Liptonhttp://en.wikipedia.org/wiki/Brooke_Bond


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Axedeodorant and after shaving lotion and soap

LEVER Ayush Therapyayurvedichealth care and personal care

products

Breeze beauty soap

Clear anti-dandruff hair products

Clinic Plus shampoo and oil

Close Uptoothpaste

Doveskin cleansing & hair care range: bar, lotions, creams and

anti-perspirant deodorants

Denim shaving products

Fair & Lovely skin-lightening products

Hamam

Lakmbeauty products and salons

Lifebuoysoaps and hand wash range

Liril2000 soap

Luxsoap, body wash and deodorant

Pearssoap Pepsodenttoothpaste

Pond'stalcsand creams

Rexonasoap

Sunsilkshampoo

Sure anti-perspirant

Vaselinepetroleum jelly, skin care lotions

TRESemm

Water Purifier Brand: Pureit Water Purifier
http://en.wikipedia.org/wiki/Axe_(brand)http://en.wikipedia.org/wiki/Axe_(brand)http://en.wikipedia.org/wiki/Ayurvedichttp://en.wikipedia.org/wiki/Ayurvedichttp://en.wikipedia.org/wiki/Ayurvedichttp://en.wikipedia.org/wiki/Close-Up_(toothpaste)http://en.wikipedia.org/wiki/Close-Up_(toothpaste)http://en.wikipedia.org/wiki/Dove_(toiletries)http://en.wikipedia.org/wiki/Dove_(toiletries)http://en.wikipedia.org/wiki/Hamam_(soap)http://en.wikipedia.org/wiki/Hamam_(soap)http://en.wikipedia.org/wiki/Lakm%C3%A9_Cosmeticshttp://en.wikipedia.org/wiki/Lakm%C3%A9_Cosmeticshttp://en.wikipedia.org/wiki/Lifebuoy_(soap)http://en.wikipedia.org/wiki/Lifebuoy_(soap)http://en.wikipedia.org/wiki/Lirilhttp://en.wikipedia.org/wiki/Lirilhttp://en.wikipedia.org/wiki/Lux_(soap)http://en.wikipedia.org/wiki/Lux_(soap)http://en.wikipedia.org/wiki/Pears_soaphttp://en.wikipedia.org/wiki/Pears_soaphttp://en.wikipedia.org/wiki/Pepsodenthttp://en.wikipedia.org/wiki/Pepsodenthttp://en.wikipedia.org/wiki/Pond%27shttp://en.wikipedia.org/wiki/Pond%27shttp://en.wikipedia.org/wiki/Rexonahttp://en.wikipedia.org/wiki/Rexonahttp://en.wikipedia.org/wiki/Sunsilkhttp://en.wikipedia.org/wiki/Sunsilkhttp://en.wikipedia.org/wiki/Vaselinehttp://en.wikipedia.org/wiki/Vaselinehttp://en.wikipedia.org/wiki/TRESemm%C3%A9http://en.wikipedia.org/wiki/TRESemm%C3%A9http://en.wikipedia.org/wiki/TRESemm%C3%A9http://en.wikipedia.org/wiki/Vaselinehttp://en.wikipedia.org/wiki/Sunsilkhttp://en.wikipedia.org/wiki/Rexonahttp://en.wikipedia.org/wiki/Pond%27shttp://en.wikipedia.org/wiki/Pepsodenthttp://en.wikipedia.org/wiki/Pears_soaphttp://en.wikipedia.org/wiki/Lux_(soap)http://en.wikipedia.org/wiki/Lirilhttp://en.wikipedia.org/wiki/Lifebuoy_(soap)http://en.wikipedia.org/wiki/Lakm%C3%A9_Cosmeticshttp://en.wikipedia.org/wiki/Hamam_(soap)http://en.wikipedia.org/wiki/Dove_(toiletries)http://en.wikipedia.org/wiki/Close-Up_(toothpaste)http://en.wikipedia.org/wiki/Ayurvedichttp://en.wikipedia.org/wiki/Axe_(brand)


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AWARDS AND RECOGNITION

As per the latestNielsenCampus Track-Business SchoolSurveyreleased in February 2013, Hindustan Unilever Limited has

emerged as the No.1 employer of choice for B-School students

who will graduate in 2013, across functions. HUL also retained

the 'Dream Employer' status for the 4th year running and

continues to be the top company considered for application by B-

School student in India.

In 2012, HUL was recognised as one of the world's most

innovative companies by Forbes. With a ranking of number 6, it

was the highest ranked FMCG company.

Hindustan Unilever Limited (HUL) won the first prize at FICCI

Water Awards 2012 under the category of 'community initiatives

by industry' for Gundar Basin Project, a water conservation

initiative.Hindustan Unilever Limited won 13 awards at the Emvies 2012

Media Awards organised by the Advertising Club Bombay in

September 2012.

The company bagged four awards at the Spikes Asia Awards

2012, held in September. The awards included one Grand Prix

one Gold Award and two Silver Awards.

HULs Chhindwara Unit won the National Safety Award for

outstanding performance in Industrial Safety. These awards were

instituted by the Union Ministry of Labour and Employment in

1965.

HUL was one of the eight Indian companies to be featured on the

Forbes list of World's Most Reputed companies in 2007.
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In July 2012 Hindustan Unilever Limited won the Golden Peacock

Occupational Health and Safety Award for 2012 in the FMCG

category for its safety and health initiatives and continuous

improvement on key metrics.

Pond's Talcum Powder's packaging innovation has bagged a Silver

Award at the prestigious 24th DuPont Global Packaging Award, in

May 2012.The brand was recognised for cost and waste

reduction.

In May 2012, HUL & Star Bazaar bagged the silver award for

'Creating Consumer Value through Joint Promotional and EventForecasting' at the 13th ECREfficient Consumer ResponseAsia

Pacific Conference.

In 2011, HUL was named the most innovative company in India by

Forbes and ranked 6th in the top 10 list of most innovative

companies in the world.

Hindustan Unilever Ltd received the National Award for Excellence

in Corporate Governance 2011 of the Institute of Company

Secretaries of India (ICSI) for excellence in corporate governance.

In 2012, Hindustan Unilever emerged as the No. 1 employer of

choice for B-School students who will graduate in 2012. In

addition, HUL also retained the 'Dream Employer' status for the

3rd year running.

Hindustan Unilever ranked No. 2 in Fortune India's Most AdmiredCompanies list, which was released by Fortune India in

partnership with the Hay Group. The company received the

highest scores for endurance and financial soundness.

HUL was ranked 39th inThe Brand Trust Report(2011) published

by Trust Research Advisory. Seven HUL brands also featured in

the list: Lux, Ponds, Dove, Lakme, Axe, Sunsilk and Pepsodent.
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HUL emerged as the top 'Dream Employer' as well as the top

company considered for application in the annual B-School Survey

conducted by Nielsen in November 2010. This was the second

successive year that HUL has been rated as the top 'DreamEmployer' in India. HUL has also emerged as the top employer of

choice among the top sixIndian Institutes of Management(IIMA,

B, C, L, K and I).

HUL won three awards at the 'CNBC AwaazStoryboard Consumer

Awards in 2011 Most Recommended FMCG Company of the

Year; Most Consumer Conscious Company of the Year and Digital

Marketer of the Year.

The company was felicitated in April 2010 for receiving the

highest number of patents in the year 2009 at Annual Intellectual

Property Awards 2010.

In 2007, Hindustan Unilever was rated as the most respected

company in India for the past 25 years byBusinessworld, one of

India's leading business magazines. The rating was based on acompilation of the magazine's annual survey of India's most

reputed companies over the past 25 years.

HUL is one of the country's largest exporters; it has been

recognised as a Golden Super Star Trading House by the

Government of India.
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MARKETING STRATERGIES OF HINDUSTAN

UNILEVER LIMITED

1. GROWTH STRATERGY

2. COMPETITIVE STRATERGY

3. SWOT ANALYSIS

4. PAN PYRAMID PORTFOLIO

5. PUSHING CONSUMER FOR MORE USAGE

6. HIGHLITING BENEFITS

7. BRAND STRATERGY

8. INNOVATIVE PRICING STRATERGY

9. INCREASE CONSUMPTION IN RURAL MARKET10. DIGITAL ADVERTISING


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1. GROWTH STRATERGY

After having fought a bitter price battle for market share with its

rivals, Hindustan Unilever Ltd (HUL), Indian subsidiary of the

Anglo-Dutch consumer goods company Unilever Plc, is now

working on a new growth strategy for its laundry business.

Price cutor hike is not a long-term growth strategy. Pricing, in

fact, is now passe, insists Sudhanshu Vats, category head, home

care.

Our strategy for growth, now is focused on product innovation,

new consumer and retail trends and aggressive marketing and

promotions, he said.

This comes even as Unilever is scouting for a potential buyer for

its laundry business in the US.

HUL says it is quite upbeat about the segment and says the

laundry segment is one of its key growth areas.

We have done key innovationsacross the product portfolio and it

is working for us, says Vats. We successfully migrated from Rin

Supreme to Surf Excel and Wheel Smart Srimatiwhich was

rolled out in 2006is also on the right track.


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HULs market share in the laundry segment grew toaround

37.8% in the quarter ended June from 35.5% in the same period

last year, according the market research firm ACNielsen.

However, this time, the increase was not at the expense of price

war with its multinational rival Procter & Gamble Co. P&G also

gained 0.5 percentage points, up to a 7.6% share. Nirma Ltd, the

Ahmedabad-based manufacturer, however, saw its market share

dip by 1.7% percentage points to 13.5%.

Wheel, a value brand that, according to Vats contributes around

50% of HULs laundry segmentrevenues, increased its market

share by 2 percentage points in the same period, with a total

share of about 18%.

According to ACNielsen, the laundry industry in India was worth

Rs7,908 crore in 2006 and rose 8.4% over 2005. HUL doesnt

report its laundry revenues separately but puts them under the

soaps and detergent category.

In 2006, HULs soaps and detergents segment contributed

around Rs5,596 crore to the companys total sales of Rs12,103

crore.


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Laundry has been an attractive segment in the past and is likely

to keep growing in the near future. The recent price war between

companies led to erosion in their profitability but now, the

industry is stabilizing, says Unmesh Sharma, an analyst at

Macquarie Securities here.

According to Vats, the laundry business is witnessing a surge in

demand from cities and HUL is focusing on Tier I and II cities to

tap that demand.

Consumers today are buying more clothes, says Vats. Trends

suggest that the usage of detergents has gone up as a result.

Also, with premium quality of clothes, people want to use better

and branded products.

Still, analysts remain cautious. Some of HULs recent moves,

such as promotional campaigns and advertising, seem right,

says Macquaries Sharma. Still, it is too early to say what result

their new strategies will yield.


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2. COMPETITIVE STRATEGY

As Competition Heats Up, Indias Top Consumer-Products

Company Woos Affluent Shoppers With Global Brands Like Dove,

While Cooking Up Its Foods Biz

The middle-aged Briton strolling the aisles and checking out the

products doesnt attract much notice from other shoppers in

Mumbais Hypercity, the India hypermarket chain. Thats how

Douglas Baillie likes it. Baillie, the managing director of Hindustan

Unilever, Indias premier consumer-products company, wants to

see how his products are stocked, what consumers are buying, and

how shoppers are reacting to competitive brands. Its primary

market research at its most elemental, and its best done incognito.

Hindustan Unilever has traditionally relied on small traders and

mom-and-pop corner stores to retail its products. But Indias

recent retail boom has created large stores and malls, so the

company wants to make sure its in with the new marketing crowd.


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Hence Baillies Hypercity visits, and the calls he makes on the

headquarters of the big retail chains.

This is quite a change for Hindustan Unilever, whose executives

used to have emissaries make obeisance at Lever house in

downtown Mumbai. I cant imagine any head from Lever House

ever visiting other company offices like this, says an amazed

Damodar Mall, chief executive of innovation and incubation at

Pantaloon Retail, Indias largest retailer and a former manager at

Hindustan Unilever.


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3. SWOT ANALYSIS

Strength

1.Hindustan Unilever Limited (HUL) is India's largest Fast

Moving Consumer Goods company, touching the lives of

two out of three Indians with over 20 distinct categories in

Home & Personal Care Products and Foods & Beverages..

2. Due to its long presence in Indiahas deep penetration

20 consumer product category, over 15,000 employees,

including over 1,300 managers, is to "add vitality to life."

3.The company derives 44.3% of its revenues from soaps and

detergents, 26.6% from personal care products, 10.5%

from beverages, and the rest from foods, ice creams,

exports, and other products.

4.Low cost of production due to economic of scale. That

means higher profits and / or more competitioners. Better

market penetration.

5.HUL is also one of the country's largest exporters; it has

been recognised as a Golden Super Star Trading House by

the Government of India.


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4. PAN PYRAMID PORTFOLIO


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5. PUSHING CONSUMER FOR MORE USAGE

LOW COST SACHETS, MINI PACKETS, NEW INNOVATION AND

ATTRACTIVE PACKAGING IN PRODUCTS IN THE SAME PRICE,

ADVERTISING THE PRODUCTS TO AN EXTENT THAT PEOPLE

DEVELOP A DESIRE, A NEED TO BUY THE PRODUCT, THUS PUSHING

THE CONSUMER FOR MORE USAGE.


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6.HIGHLIGHTING BENEFITS


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7. BRAND STRATERGY

The 1980s witnessed a revolution in the understanding of the

working of the brands. Marketers depict brands as a reflection ofcustomers own personalities, so that they can relate to their

products well. In fact the distinguishing aspect of the modern

marketing has been its focus upon the creation of differentiated

brands and using them as weapons for launching multi-level

attacks on competition. Market research has been used to help

identify and develop bases of brand differentiation. A brand

identifies a product and its sources, but it does even more. Along

came brand extension. Today brand extension strategies are

widely employed because of beliefs that they build and

communicate strong brand positioning, enhance awareness and

increase profitability.

Brands are often extended beyond their original categories to

include new product categories. Research has proved that thesuccess of brand extension depends on the transfer of parent

brand awareness and associations to the extension. The transfer

of these quality perceptions is the key in umbrella branding. An

umbrella brand is a brand that covers diverse kinds of products

which are more or less related. It applies also to any company

that is identified only by its brand and history. It is contrasted

with individual branding in which each product in a portfolio is

given a unique identity and brand name.

Mr. K.R.Senthilvelkumar, a professor at Jansons School of

Business offers the most pragmatic of reasons behind an

umbrella brand strategy, with scarce financial resources, firms

cannot afford to allocate huge budgets for building and

maintaining several brands.


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Nowadays consumers have become quite unpredictable in their

newspaper-reading or TV-viewing habits, it is very difficult to

assure the reach of messages to the target audiences. The

advertiser has to use many broadcast and print media with high

frequency to create the desired effect for every brand, which

ultimately puts huge burden on the budget. Hence, companies

consider it wise to maintain a minimum number of brands in their

portfolio so that they can do justice to each by effectively

distributing their investment for promotion purpose.

Yes, umbrella branding is widely practiced. The Confederation ofIndian Industry's second FMCG (fast moving consumer goods)

conclave in 2003 almost declared that umbrella branding was the

way to go in a competitive market environment. In an interesting

anecdote, R S Sodhi, GM Marketing (Gujarat Cooperative Milk

Marketing Federation l), compared the umbrella brand and

individual brands to an Indian family, where in umbrella brands -

like the Indian family, the father is the head, looking over the

children. When they grow up and become independent, they hold

the umbrella for the family. Individual brands on the other hand

are like a western family, who grow up fast and leave the father

behind. Amuls strategy of using umbrella branding has really

paid off. Amuls advertising and marketing spend has never

exceeded 1% of its revenues. Most other food companies spend

6-7% of revenues on advertising and marketing. They (GCMMF)

are not big spenders compared to Britannia or Nestle. Despite a

limited budget, Amuls creativesin the form of billboards or the

Taste of India campaignhave always managed to evoke a

larger-than-life brand feel, consistency and spirit of Indian

culture in a contemporary way.Companies phase out the brands which have become redundant


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and retain one or two umbrella brands for every category with

necessary variations under each. For example consumer goods

major Reckitt & Colman India Ltd. chalked out an expansion

strategy to introduce 20 new brands in the year 1999-2000. The

strategy also involved repositioning its existing brands and

consolidating sub-brands under its main umbrella brands -

Dispirin, Dettol, Harpic and Cherry Blossom. The strategy was

designed to vault Reckitt & Colman, in terms of sales, into the big

league. With the launch of new brands and the repositioning of its

existing brands, the company aimed to achieve expected salesgrowth. The strategy worked well as Dettol as an antiseptic lotion

provided brand support to Dettol soap, which was re-launched in

a fragrant form called Dettol Fresh to take on HLL's Liril. Cherry

Blossom acted as a mother brand for several easy-to-use home

products.

Hindustan Unilever Ltds (HUL) beverage brands have been

amalgamated under two umbrella brands Brooke Bond and

Lipton and in the fabric wash category, the company has retained

only Rin, Surf and Wheel, HUL has withdrawn brands such as

Sunlight, 501, Dalda and Nihar; it plans to withdraw some more

brands and group them under a few umbrella brands. HUL is

currently focusing on 35 power brands.

Nivea cosmetics brand has a presence in huge number of product

categories and countries. Once upon a time Nivea's performance

prompted a yahoo.com news article to name it the 'Queen of

Mega Brands.' This title was appropriate since the brand was

present in over 14 product categories and was available in more

than 150 countries. Nivea was reportedly believed to be a brand

of local origin - having been present in them for many decades.This fact went a long way in helping the brand attain the


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leadership status in many categories and countries. According to

analysts, the brand was the single largest factor for the 4.4%

increase in the company's (Beiersdorf) revenues ( 4.74 billion)

and 10.7% increase in after-tax profit ( 290 million) for the year

2002. Beiersdorf never tried to disturb the umbrella branding of

Nivea and got fruitful results.

Today as organized retailing is gaining popularity, we can see

that popularity of private labels owned by retailers. Retailers do

not feel the need to develop many brands for various categories

because it is the loyalty towards their store name which drawsand retains the customers. Hence it is the umbrella retail store

name which will be the brand for various product categories and

not individual names for each. Customers prefer these brands

over that of manufacturers, due to the fact that they address their

functional needs well. The retailers also enjoy high margins for

private labels. Today a retail chain like Shoppers Stops 20%

apparel section is driven by private labels. There are others like

Trent from the TATAs which has developed its business model

purely on private labels.

From Asian Paints in 2003 to Electrolux, Onida and Airtel in 2004,

they have all made a move from individual product branding to

umbrella branding. Just a few year ago Bharti Televentures had

brand Airtel for mobile services, Touchtel for land line and India

One for long distance calls. But with Airtel dominating the group's

ad spends, the company figured that the other brands were

hardly making their presence felt. The unified licensing regime in

December 2003 - which means that only one license is required

to offer fixed, mobile and other services - acted as a catalyst (new

Airtel logo/ Airtel outlets). So come September 2004 and thecompany started selling all its services under one brand name -


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They also launched E-series phones (which serve business users)

and N-series (which have multimedia features).

While some players say that the naming trend will be restricted to

the high-end, feature-led phones(for example- LG is also

banking on the name game but in that case it is confined to the

high-end range of designer phones), others like Motorola are

banking on names irrespective of price slabs. Motorola believes

that consumers don't look at these names in an abstract manner

and therefore names convey a message to consumers.

A few umbrella brands or individual brands? According toexperts, independent brands only make sense when the product

clearly has a different proposition from the company brand; like

Lexus from Toyota and Swatch from Omega. In the case of Asian

Paints, there were so many sub-brands, there was a reduction of

media weights for advertising each entity. Then, the company

shifted to a brand-centric portfolio, which involved a change of

logo, product names, packaging and advertising. But the

response from the trade and consumers has been positive, overall

brand synergy and shop presence have increased, and the

advertising is more effective.

Most probably in near future the media environment will make it

impossible to create newer brand names and the conditions at the

consumer level, as well as the environment. So unless the product

is clearly different in the mind of the consumer, umbrella

branding is the way to go. Umbrella brands are going to rule!


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8. INNOVATIVE PRICING STRATERGY

Unilever takes HUL strategies like small packs,

cheaper variants to developed marketsDuring a 2009 India visit, Paul Polman, CEO ofAnglo-Dutch consumer goods major Unilever,

couldn't conceal his delight with the Indian

subsidiary's strategy of offering brands with

multiple price and packaging options, helping

consumers trade down or up depending on the

state of the economy.

"If we had that (such options) in the United States,

there is no reason why we would be hit in a

recession. We have seen that we tend to do well in

markets that have a wide portfolio of brands in a

category. So, we are trying to do the same in

other markets," Polman had said.

Three years on, theUnileverCEO's words are ringing true in

developed markets. The home &personal careand foods giant is

now dipping into the sales strategies being deployed by outposts

in developing and emerging (D&E) markets, such as

India'sHindustan Unilever Ltd(HUL), to appeal to recession-

ravaged consumers in the US and Europe.

These include selling smaller pack sizes, affordable variants of

best-selling brands for the developed world's bottom of the

pyramid consumer, and single-serve sachet variants.

Company officials say consumers indeveloped marketsplagued

byunemploymentand shrinkingdisposable incomeare displaying

similar habits of thrift as those in developing markets.
http://economictimes.indiatimes.com/topic/Unileverhttp://economictimes.indiatimes.com/topic/Unileverhttp://economictimes.indiatimes.com/topic/Unileverhttp://economictimes.indiatimes.com/topic/personal%20carehttp://economictimes.indiatimes.com/topic/personal%20carehttp://economictimes.indiatimes.com/hindustan-unilever-ltd/stocks/companyid-13616.cmshttp://economictimes.indiatimes.com/hindustan-unilever-ltd/stocks/companyid-13616.cmshttp://economictimes.indiatimes.com/hindustan-unilever-ltd/stocks/companyid-13616.cmshttp://economictimes.indiatimes.com/topic/developed%20marketshttp://economictimes.indiatimes.com/topic/developed%20marketshttp://economictimes.indiatimes.com/topic/developed%20marketshttp://economictimes.indiatimes.com/topic/unemploymenthttp://economictimes.indiatimes.com/topic/unemploymenthttp://economictimes.indiatimes.com/topic/unemploymenthttp://economictimes.indiatimes.com/topic/disposable%20incomehttp://economictimes.indiatimes.com/topic/disposable%20incomehttp://economictimes.indiatimes.com/topic/disposable%20incomehttp://economictimes.indiatimes.com/topic/unemploymenthttp://economictimes.indiatimes.com/topic/developed%20marketshttp://economictimes.indiatimes.com/hindustan-unilever-ltd/stocks/companyid-13616.cmshttp://economictimes.indiatimes.com/topic/personal%20carehttp://economictimes.indiatimes.com/topic/Unilever


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The maker of brands such as Axe, Dove, Knorr and Lipton is

selling small packs of its brands in markets such as Spain, Greece

and the US. In Spain, for instance, Unilever sells Surf detergent in

packs offering five washes, and offers mashed potatoes and

mayonnaise in small packages in Greece. It has also launched a

low-cost brand for tea and olive oil for the euro markets.

Confirming the move, a Unilever spokesperson said: "We have

'reverse-engineered' products from D&E markets - where we have

big, long-established businesses - starting with a price point that

people can afford and then working our way backwards along the

supply and manufacturing chain to make sure that we can make it

a profitable business model. We know that this works as a way of

meeting the needs and aspirations of consumers who struggle to

make ends meet - be that through low-price sachets of

shampoos or basic bouillons."

Across Europe, Unilever has noted that the recession drives more

consumers to packed lunches and home-baking. The company

has now introduced new baking products like Stork baking liquid

as an option to the more expensive butter as well as in packs that

can be re-used as lunch boxes.

The spokesperson also points out that Unilever runsmarketing

campaignson mayonnaise that seek to inspire people to make

the most of their leftovers. "Groups of consumers see value

differently. The 'cash strapped' are really about spending the least

out of pocket as possible; whilst 'smart shoppers' might be

looking for the best price per portion; and 'bargain hunters' the

best possible promotional deal," explains the spokesperson. One

way Unilever is trying to meet consumer needs is by positioningspecific brands as value-for-money alternatives. Example: the
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spreads portfolio has 'I can't Believe it's not Butter' in the United

Kingdom, Homa in Germany and Delma in Poland. Unilever is also

rolling out Saga, a strong value-for-money tea brand in central

European markets.

The consumer goods giant has also dramatically increased the

number of products that retailers can choose to sell at euro 1 or

1.

Within the Knorr Bouillon range, Unilever has

launched Knorr Economica with an entry-level

stock cube that's priced some 60% lower than

the normal line. Another strategy involves

offering more at an affordable price: like ice-

creams in mega packs, large jars of mayo, and

PG Tips in '240 Tea Bag' formats.

Much of what Unilever is replicating in the

developed world has originated in India. For

instance,HUL had launched a sachet blitz

across such power brands as Close-Up,

Pepsodent, Sunsilk, Ponds, Vaseline, Brooke

Bond Taj Mahal and Bru to increase product

penetration at the bottom of the pyramid.

Innovations that add value, particularly at the lower end of the price

spectrum, are being shipped to developed markets.

What we have been able to do better as a business is take some of the

techniques we use in one part of the world and apply them where they are

appropriate elsewhere," adds the Unilever spokesperson.

Kannan Sitaram, operating partner at India Equity Partners, a New York-

based private equity firm, says with Unilever adopting value-for-money
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strategies in the developed world, the bottom of the pyramid term has now

got a new dimension.

"Bottom of the pyramid does not mean poor consumers; it includes those

who want a particular value at a price, across categories."


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9. INCREASE CONSUMPTION IN RURAL MARKET

a. Project Shakti

Project Shaktiis a rural distribution initiative that targetssmall villages.

HUL identifies underprivileged women in villages and these

women are trained to be entrepreneurs.

Shakti started with 17 women in two states. Today, it

provides livelihood enhancing opportunities to about 45,000

women in 15 Indian states and provides access to quality

products across 100,000+ villages and over 3 million

households every month.


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1. To Reach:Small, scattered settlements and poor infrastructure make

distribution difficult

Over 50,000 villages not reached directly by HUL

2. To Communicate:Low literacy hampers effectiveness of print media

Poor media-reach: 500 million Indians lack TV and radio

Khushiyon Ki DoliThe company launched a multi-brand rural marketing initiative

called Khushiyon Ki Doli, in 2010 in three states Uttar Pradesh,

Andhra Pradesh andMaharashtra.Through this initiative more

than 10 million consumers were contacted directly in more than

28,000 villages across these three states. Through this initiative,

the company also reached out to 170,000 retailers in these

villages.Through this initiative HUL engaged with 25 million rural

consumers in media dark areas in 2011.

In 2011, HUL extended this initiative to cover five states West

Bengal, Bihar, Maharashtra, Andhra Pradesh and Uttar Pradesh,

covering over fifty thousand villages across these five states.

In 2012, Kushiyon Ki Doli has been extended to Karnataka to

cover a total of six States: Maharashtra, UP, Bihar, West Bengal,

Andhra Pradesh and Karnataka. The initiative aims to cover over

Fifty five thousand villages in 2012.

Various personal care and home care brands of HUL have

participated in this initiative including: Wheel, Surf Excel, FAL,
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Sunsilk, Vim, Lifebuoy and Closeup. The module follows a three-

step process, starting with awareness, moving on to consumer

engagement and finally retail contact. The first step of spreading

awareness is achieved through a team of promoters who head to

each village and invite the villages to what is known as Mohallas

to make them aware of the company and its products. In every

village, there are about 45 teams that conduct these events in

local language for small focused groups so that it allows for

greater engagement and involvement for the consumers. During

this activity, brands are introduced with the help of TVCs that areplayed continuously. And the promoters by way of live

demonstrations bring alive the hygiene benefits of using such

brands and improving the quality of daily life. To increase the

fun element and enhance involvement, promoters also conduct

simple quizzes and games around the brands and daily hygiene

habits. As part of this activation,the company offers schemes

both for the participating consumers and also local retailers for

generating trial among consumers as well enhancing availability

at retail. Post the mohalla activity, the promotes go home to

home and conduct consumer home visits to generate trial where

they offer attractive promotions to the consumers. Similarly, there

is another team which visits all the shops in the village which

ensures improved availability and visibility of HUL brands.

Technology has been used to advertise and market HUL's brands.

At the same time, the company has utilised traditional symbols to

bolsterPublic Relations.For example, the brand films and

hygiene messages are shown to the consumers through the use

ofPalki.
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10. DIGITAL ADVERTISING

Sometime in mid 2011, Nitin Paranjpe, CEO of the Rs 22,000-

crore HindustanUnilever,found himself taking some unusual

lessons: on how to tag a person onFacebook,and tweet.

Teaching the digitally challenged Paranjpe the ropes of social

media was Karthik Perumal, the 32-yearold media services

manager of HUL. "Today, there is a generation of consumers

growing up only in the digital space," Paranjpe told ET in

December 2012. "As the CEO of a company whose business

revolves around the consumer, how can I not be clued in to it?"

Its learning and in many cases, unlearning that

everyHULmarketing manager is going through, though in less

personalised settings.

While Paranjpe has a personal coach, HUL managers have trainersfrom Google teaching them the vocabulary of the online world,

acquainting them with technologies involved, and giving them a

digital certification. That's at the back end. The back end is meant

to pump the front end, which is fast changing in character.

HUL is acquiring momentum in its online and digital drive. In

FY13, it is expected to triple ad spends in those mediums, takingtheir share to 7% of its total ad spend, which was Rs 2,635 crore

in FY12, according to analyst estimates.

In FY14, this is expected to cross 10%. In HUL's media spend,

online is now number two, after television.
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In 2012, HUL launched a massive India-

specific initiative, BE Digital, which draws a

complete digital road map for premium brands

such as Tresamme, Sunsilk, Lakme, Close-up

and Surf, for which the target audience online

is high.

So, against the old approach of thinking about digital after

exhausting TV spending on a brand, HUL is integrating social

media and mobile into the brands' marketing at the planning

stage itself, as it did with Tresamme, a hair care brand.

HUL created Tresamme Style Studio, a digital-styling website

loaded with 100-odd videos on hair styling, a webcam mirror that

lets women style along in real-time, and a tool that lets women

test new lengths and looks on their own hair virtually.

The company is also working on a semi-digital roadmap for its

other brands, which will eventually be scaled up depending on a

brand's requirement.

"For some brands, the time has already come now, and others will

catch up," says Hemant Bakshi, executive director home &

personal care, HUL.

"Fact is, no brand can today escape being digital." According toBakshi, young consumers say they spend three to four hours daily

in the digital space, and there are more people accessing the

Internet via the mobile than through computers. "The digital

space has reached an inflexion point," he says.

"A young girl I met in Bangalore said the phone was the first thing

she checked every morning, and that she was more on theInternet than on television. The reality is that consumers in the


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digital space have moved on much faster than companies have."

HUL, which has 35 brands in 20 categories, is pulling multiple

levers in an attempt to catch up. It is training its brand managers.

It has set up a 'digital experimentation fund' to encourage

employees to pitch ideas for the online space, five of which have

been rolled out. The company is seeking partnerships outside of

its traditional advertising agencies.

Marketing consultant Suman Srivastava says HUL still has to

master the art of doing something unconventional to make an

impression online. "Currently, HUL's digital strategy is

complementing its television strategy, while the Internet is all

about engaging consumers in a different way," says Srivastava,

founder of Marketing Unplugged, marketing consultancy firm.

Part of that re-orientation, adds Srivastava, involves HUL looking

beyond traditional ad agencies. "A lot of real innovations are

being done by smaller firms," he says.

In HUL's case, Srivastava cites the example of Wheel's 'missed call'

campaign as impact. In December 2011, an ad of Active Wheel on

All India Radio in Uttar Pradesh and Bihar asked listeners to give a

missed call from their mobiles. When they did so, they promptly

got a call back with a recording of actor Salman Khan's dialogues

from his film Ek Tha Tiger and his endorsement of Wheel.

According to company estimates, HUL got 16-million missed calls

in four months and that, by the end of the campaign, brand

awareness scores for Wheel had increased 25% and sales by three

times in the region. "We have a number of measurement

techniques in place, but ultimately digital must lead to our brands

becoming stronger and this should be reflected in sales," saysBakshi. An HUL internal research study showed that


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YouTubedelivered the highest return on investment (RoI) in terms

of building a brand's awareness.
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CONCLUSION

This company project has demonstrated HINDUSTAN

UNILEVERS MARKETING STRATEGIES AND POLICIES that has

proved to be extensive through, and of great benefit to the company

in furthering its competitive advantage.

In this project it possible to see the success of Hindustan Unilevers

in its indorse its strong potential to continue to dowell.


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BIBLIOGRAPHY

A L Ries (1996), Focus Harper Collins Publishers Ltd.

David A. Aaker (1991), Managing Brand Equity, The FreePress.

David A. Aaker (1996) Building Strong Brands, The FreePress.

Philip Kotler (Eighth Edition) Marketing Management,Prentice Hall of India Ltd.

The Economic TimesBrand Equity

Market survey and questionnaires

www.unilever.com

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