INDORE MANAGEMENT INSTITUTE

PROJECT ON HINDUSTAN UNILEVER LTD.

SUBMITTED BY:-

MANISH ACHARYAMBA+PGP

IOEIMI/MBA/2010/116

INTRODUCTION

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. The company’s Turnover is Rs. 17,523 crores (for the financial year 2009 – 2010).

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 about €40.5 billion in 2008. Unilever has about 52% shareholding in HUL.

Hindustan Unilever was recently rated among the top four companies globally in the list of “Global Top Companies for Leaders” by a study sponsored by Hewitt Associates, in partnership with Fortune magazine and the RBL Group. The company was ranked number one in the Asia-Pacific region and in India.

The mission that inspires HUL's more than 15,000 employees, including over 1,400 managers, is to 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.  It is a mission HUL shares with its parent company, Unilever, which holds about 52 % of the equity.

Heritage

HUL’s heritage dates back to 1888, when the first Unilever product, Sunlight, was introduced in India. Local manufacturing began in the 1930s with the establishment of subsidiary companies. They merged in 1956 to form Hindustan Lever Limited (The company was renamed Hindustan Unilever Limited on June 25, 2007). The company created history when it offered equity to Indian shareholders, becoming the first foreign subsidiary company to do so. Today, the company has more than three lakh resident shareholders.

HUL’s brands -- like Lifebuoy, Lux , Surf Excel, Rin, Wheel, Fair & Lovely, Sunsilk, Clinic, Close-up, Pepsodent, Lakme, Brooke Bond, Kissan, Knorr, Annapurna, Kwality-Walls - are household names across the country and span many categories - soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary products. They are manufactured in over 35

factories, several of them in backward areas of the country. The operations involve over 2,000 suppliers and associates.HUL's distribution network covers 6.3 million retail outlets including direct reach to over 1 million.

HUL has traditionally been a company, which incorporates latest technology in all its operations. The Hindustan Lever Research Centre (now Hindustan Unilever Research Centre) was set up in 1958.

Doing Well by Doing Good

HUL believes that an organisation’s worth is also in the service it renders to the community. HUL focuses on hygiene, nutrition, enhancement of livelihoods, reduction of greenhouse gases and water footprint.It is also involved in education and rehabilitation of special or underprivileged children, care for the destitute and HIV-positive, and rural development. HUL has also responded in case of national calamities / adversities and contributes through various welfare measures, most recent being the relief and rehabilitation of the people affected by the Tsunami disaster, in India.

HUL’s Project Shakti is a rural initiative that targets small villages populated by less than 5000 individuals. Through Shakti, HUL is creating micro-enterprise opportunities for rural women, thereby improving their livelihood and the standard of living in rural communities. Shakti also provides health and hygiene education through the Shakti Vani programme.The program now covers 15 states in India and has over 45,000 women entrepreneurs in its fold, reaching out to 100,000 villages and directly reaching to over three million rural consumers.

HUL also runs a rural health programme, Lifebuoy Swasthya Chetana. The programme endeavours to induce adoption of hygienic practices among rural Indians and aims to bring down the incidence of diarrhoea. It has already touched 120 million people in approximately 50, 676 villages across India.

If Hindustan Unilever straddles the Indian corporate world, it is because of being single-minded in identifying itself with Indian aspirations and needs in every walk of life.

COMPANY HISTORY:

In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers".With it,began an era of marketing branded Fast Moving Consumer Goods (FMCG).

Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim.Vanaspati was launched in 1918 and the famous Dalda brand 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 Limited (1935). These three companies merged to form HLL in November 1956; HLL offered 310% of its equity to the Indian public, being the first among the foreign subsidiaries to do so. Unilever now holds 51.55% equity in the company. The rest of the shareholding is distributed among about 380,000 individual shareholders and financial institutions.The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, thecompany had launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was formed. Brooke Bond joined the Unilever fold in 1984 through an international acquisition. The erstwhile Lipton's links with India were forged in 1898.Unilever acquired Lipton in 1972, and in 1977 Lipton Tea (India) Limited wasincorporated.Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986.The liberalization of the Indian economy, started in 1991, clearly marked aninflexion in HLL's and the Group's growth curve. Removal of the regulatory framework allowed the company to explore every single product and opportunity segment, without any constraints on production capacity.Simultaneously, deregulation permitted alliances, acquisitions and mergers. Inone of the most visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills Company (TOMCO) merged with HLL,

effective from April 1, 1993. In 1995, HLL and yet another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Lever Limited, to market Lakme's market-leading cosmetics and other appropriate products of both the companies. Subsequently in 1998, Lakme Limited sold its brands to HLL and divested its 50% stake in the joint venture to the company. HLL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994, Kimberly-Clark Lever Ltd, which markets Huggies Diapers andKotex Sanitary Pads. HLL has also set up a subsidiary in Nepal, Nepal Lever Limited (NLL), and its factory represents the largest manufacturing investment in the Himalayan kingdom. The NLL factory manufactures HLL's products like Soaps, Detergents and Personal Products both for the domestic market and exports to India.The 1990s also witnessed a string of crucial mergers, acquisitions and allianceson the Foods and Beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with significant interests in Instant Coffee. In 1993, it acquired the Kissan business from the UB Group and the Dollops Icecream business from Cadbury India.As a measure of backward integration, Tea Estates and Doom Dooma, twoplantation companies of Unilever, were merged with Brooke Bond. Then in July 1993,Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL), enabling greater focus and ensuring synergy in the traditional Beverages business. 1994 witnessed BBLIL launching the Wall's range of Frozen Desserts. By the end of the year, the company entered into a strategic alliance with the Kwality Icecream Group families and in 1995 the Milkfood 100% Icecream marketing and distribution rights too were acquired.Finally, BBLIL merged with HLL, with effect from January 1, 1996. The internal restructuring culminated in the merger of Pond's (India) Limited (PIL) with HLL in 1998.The two companies had significant overlaps in Personal Products, Speciality Chemicals and Exports businesses, besides a common distribution system since 1993 for Personal Products. The two also had a common management pool and a technology base. The amalgamation was done to ensure for the Group, benefits from scale economies both in 4 domestic and export markets and enable it to fund investments required for aggressivelybuilding new categories.In January 2000, in a historic step, the government decided to award 74 per centequity in Modern Foods to HLL, thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. HLL's entry into Bread is a strategic extension of the company's wheat business. In 2002, HLL acquired the government's remaining stake in Modern Foods. In 2003, HLL acquired the Cooked Shrimp and Pasteurized Crabmeat

business of the Amalgam Group of Companies, a leader in value added Marine Products exports.

COMPANY PROFILE AND STRUCTURE

Date of Establishment 1933Revenue 4275.18 ( USD in Millions )Market Cap 591452.8929621 ( Rs. in Millions )Corporate Address Hindustan Lever House,165/166 Backbay

Reclamation, Mumbai-400020, Maharashtrawww.hll.com

Management Details Chairperson - Harish Manwani MD - Nitin ParanjpeDirectors - A Narayan, Ashok K Gupta, C K Prahalad, D S Parekh, D Sundaram, Dhaval Buch, Douglas Baillie, Gopal Vittal, Harish Manwani, Nitin Paranjpe, Pradeep Banerjee, R A Mashelkar, S Ramadorai

Business Operation Household & Personal ProductsBackground Hindustan Unilever (HUL) is the largest fast

moving consumer goods (FMCG) company, a leader in home & personal care products and foods & beverages. HUL's brands are spread across 20 distinct consumer categories, touching lives of every 2 out of 3 Indian.

It has employee strength over 15000 & 1200 managers. It has created widespread network through its 2000 suppliers & associaties.There 75

Financials Total Income - Rs. 208102.045 Million ( year ending Mar 2009) Net Profit - Rs. 25007.057 Million ( year ending Mar 2009)

Company Secretary Ashok K GuptaBankersAuditors Lovelock & Lewes

Unilever Products by country and customer segment for each product category

PRODUCTS i. AXE

ii. CLOSE UP

iii. DOVE

iv. FAIR & LOVELY

v. LUX

vi. PEPSODANT

Axe, the deodorant that is considered cool, fashionable and stylish by young men was launched in India in 1999. Available in more than 60 countries around the world, it is a world leader in male toiletries. Axe has a mix that is completely harmonised globally – from its proposition and communication to the product, as available on the shelf. Axe is available in five fragrances: Java, Pulse, Dimension, Voodoo and Phoenix. Axe has become the leading male deodorant brand in India within just one year of its launch. Consumers associate a lifestyle of cool clubs, cool music and cool fashion with Axe. The youth view

it as an icon which introduces many 'firsts' to their world of music and dance – like the first "World's Longest Dance Party" and the first ever 'Axe Voodoo Island Party'

Closeup is the original youth brand of India. The first brand targeting youth in the oral care market, with an edgy and youthful image which stays relevant till date. Ever since its launch in 1975, Closeup has broken every rule in the book on how toothpastes should behave! Closeup was the first gel toothpaste to be launched in India and has led the gel toothpaste segment ever since. In 2004, Closeup was re-launched with a bang. And this time it was packed with the power of Vitamin Fluoride System – a powerful mix of Vitamins, Fluoride, Mouthwash and Micro whiteners, the perfect combination of ingredients for fresher breath and stronger, whiter teeth. Closeup became the first Gel toothpaste with Fluoride in the Indian Market! The brand umbrella also includes Closeup Lemon Mint, gel toothpaste with the whitening benefits of lemon. The latest entry in the Closeup stable is Closeup Milk Calcium – revolutionary new toothpaste with the goodness of milk calcium in an industry-first core-in-sheath format, with white milk calcium nutrient on the inside and a refreshing blue gel on the outside.

Dove soap, which was launched by Unilever in 1957, has been available in India since 1995. It provides a refreshingly real alternative for women who

recognise that beauty is not simply about how you look, it is about how you feel. The skin's natural pH is slightly acidic 5.5-6. Ordinary soaps tend to be alkaline, with pH higher than 9. Dove is formulated to be pH neutral (pH between 6.5 and 7.5) and to be mild on skin. This makes it suitable for all skin types for all seasons. While Dove soap bar is widely available across the country, Dove Body Wash is available in select outlets. Globally, Dove has been extended to many other countries. Since the 1980s, for example, Unilever has launched a moisturising body-wash, deodorants, body lotions, facial cleansers and shampoos and conditioners, providing a comprehensive range of solutions to bring out true inner beauty.

A woman's passion for beauty is universal and catering to this strong need is Fair & Lovely. Based on a revolutionary breakthrough in skin lightening technology, Fair & Lovely was launched in 1978. The Hindustan Lever

Research Centre (it is among the largest research establishments in India's private sector, including pharmaceutical companies, with facilities in Mumbai

and Bangalore) deployed technology, based on pioneering research in the science of skin lightening to develop Fair & Lovely. The formulation is

patented. Its formulation acts safely and gently with the natural renewal process of the skin, making complexion fairer over a period of six weeks. Fair & Lovely

is formulated with optimum levels of UV sunscreens and Niacinamide that is known to control dispersion of melanin in the skin. It is a patented and

proprietary formulation, which has been in the market for 25 years. Niacinamide (Vitamin B3) is a water-soluble vitamin and is widely distributed in cereals, fruits and vegetables - and its use in cosmetic formulations has been

known for various end benefits. The UV components of the formulation are scientifically chosen and used at optimum levels to provide wide spectrum

protection against UV rays of the sun. Specifically, this patented formulation offers a high UVA protection, which is more relevant to Asian skin than plain

SPF protection creams sold in the West. All the active ingredients in the Fair & Lovely formulation function synergistically to lighten skin colour through a

process that is natural, reversible and totally safe. The brand today offers a substantive range of products, including Ayurvedic Fair & Lovely Fairness

cream, Fair & Lovely Anti-Marks cream, Fair & Lovely Oil control Fairness Gel, Fair & Lovely for Deep Skin and Fair & Lovely Fairness Soap. The latest

has been the Perfect Radiance, a complete range of 12 premium skincare solutions from Fair & Lovely.

Since 1929, Lux in step with the changing trends and evolving beauty needs of the consumers, offers an exciting range of soaps and Body Washes with unique elements to make bathing time more pleasurable. One can choose from a range of skincare benefits like firming, fairness and moisturising. Lux stands for the promise of beauty and glamour as one of India's most trusted personal care brands. Lux Believes in passion for beauty .It continues to be a favourite with generations of users for the experience of a sensuous and luxurious bath. Lux believes that femininity shouldn’t be denied. Since its launch in India in the year 1929, Lux has offered a range of soaps in different sensuous colours and world class fragrances. Lux is a beauty soap of film stars, Lux recognized the need for a compelling message about beauty that would resonate with women of today. Lux has recently launched its two fruit extract variants – New Lux Strawberry & Cream and Lux Peach & Cream contain a blend of succulent fruits & luscious Chantilly cream that melts down into your skin making it soft and smooth

Pepsodent, launched in 1993, was the first toothpaste with a unique anti-

bacterial agent to address the consumer need of checking germs even hours after brushing. Pepsodent packs included a Germ Indicator in February-May 2002, which allowed consumers to see the efficacy in fighting germs for themselves. As a follow-up, in October 2002, Pepsodent offered Dental Insurance to all its consumers to demonstrate the confidence the company has in the technical superiority of the product. Pepsodent connects directly with kids and their parents. Pepsodent has always worked in the direction of an overall awareness of dental health. The relaunch campaign in October 2003 widened the context to "sweet and sticky" food and leveraged the truth that children do not rinse their mouths every time they eat, demonstrating that this makes their teeth vulnerable to germ attack. Pepsodent's most recent campaign aims at educating consumers on the need for germ protection through the night. Pepsodent also includes a range of toothbrushes.

Business Segments

Soaps and Detergents (46% Revenue, 44% EBIT): This segment includes Laundry and Personal Wash products like soaps, detergent bars, detergent powders, detergent liquids, scourers,etc.Sales of the segment grew sales by 13.9% and 20.3% in CY07 and H1CY08 respectively. Fabric Wash has shown strong growth in this year with the market share moving up from 34.6% in Q4CY06 to 38.3% in Q2CY08 Profitability margins which declined from 25.7% in CY'02 to 13.7 % in CY'05 due to pricing actions from P&G in the Laundry segment have slightly recovered to 15.6% (CY'07).

Personal Care Products (26% Revenue, 46.2% EBIT) : This business which comprises mainly skin care, hair care and oral care is the most profitable segment for HUL.It is highest contributor to HUL’s EBIT at 47%. Low penetration and consumption of personal products has sustained these categories' high growth rates. This segment has shown a revenue growth of 20.9% in H1CY08 and the new launches in the Ponds and Dove range contributed to the profitability of the segment.

Beverages (11% Revenue,10.3% EBIT) : HUL's beverages business is operated through the Brooke Bond and Lipton brands for packet tea and Bru brand for coffee. With the aggressive relaunch of Brooke Bond, Taj Mahal and Taaza, the company has been able to arrest the decline in its market share.Overall margins have declined to 15% in CY'07 from 20% in CY'04 due to hike in Coffee bean prices.

Foods (4% Revenue, 0.8% EBIT) :In spite of having one of the best distribution networks (coverage of 6.3 mn outlets) in the country, the food business has never constituted a big part of revenues.Thats why this is the current focus area for the company. Presence in the foods category is mainly through soup mix, Chinese meal maker, jams, ketchups and salts. HUL is clearly keeping a low profile in the staples category, which is low margin business.Foods margin dipped partly due to launch related costs for Amaze brain foods (launched in two southern states during the January–March 2008 quarter).

Ice Cream(1% Revenue, 0.6%EBIT) : This segment includes include Ice Creams and Frozen Desserts.Kwality Wall's, launched in 1995, is the company's master brand for ice cream. It has launched Moo brand that boosts children’s calcium levels in the June quarter of CY07.

Exports : Exports include sales of Marine Products, Castor, etc. as well as sales of soaps and detergents, personal products, beverages and foods etc. by the Exports Division. Exports are the lowest-margin business for the company. It has already exited the low-margin shrimps and castor business.

Others: This section includes Chemicals,Water purifiers, Agri seeds, Property Development, Water business, Ayush services etc. It has seen a growth of 41.5% as Pure It (a water purifier product) increased its reach to more than 600 towns.

Unilever Principles Mission and 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. We will develop new ways of doing business that will allow us to double the

size of our company while reducing our environmental impact.We've always believed in the power of our brands to improve the quality of people’s 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.

principlesOur corporate purpose states that to succeed requires "the highest standards of corporate behaviour towards everyone we work with, the communities we touch, and the environment on which we have an impact."

Always working with integrity

Conducting our operations with integrity and with respect for the many people, organisations and environments our business touches has always been at the heart of our corporate responsibility.

Positive impact 

We aim to make a positive impact in many ways: through our brands, our commercial operations and relationships, through voluntary contributions, and through the various other ways in which we engage with society. 

Continuous commitment

We're also committed to continuously improving the way we manage our environmental impacts and are working towards our longer-term goal of developing a sustainable business.

Setting out our aspirations 

Our corporate purpose sets out our aspirations in running our business. It's underpinned by our code of business Principles which describes the operational standards that everyone at Unilever follows, wherever they are in the world. The code also supports our approach to governance and corporate responsibility.

Working with others

We want to work with suppliers who have values similar to our own and work to the same standards we do. Our Business partner code, aligned to our own Code of business principles, comprises ten principles covering business integrity and responsibilities relating to employees, consumers and the environment.

Market Size Description of a Chosen Brand vs Competitors

MARKET SIZE DESCRIPTIONIn a volume driven and competitively intense environment with competition also from local players FMCG players are aggressively promoting their brands to gain product awareness, customer base, and their shares of the customers’ wallets. To facilitate launch new products and relaunch of existing products companies are increasing their research and development expenditure. These factors eat up the profitability margins of the companies. HUL has consistently been the top advertisement spender over the years with expenditure of Rs 650 crore in the year 2008. Second largest spending is Rs 240 crore by a telecom company. P&G India and Colgate-Plamolive, other FMCG players, also feature in the top 10 advertisers list. HUL has increased its advertising expenses by 26.56% in CY'07.Also the money spent in Research and Development which facilitates new product launches and re-launches of existing products has seen a raise by 38.16% in the same year. Pricing scenario in current time is in favor of companies but in past due to pricing war with P&G in Soaps and Detergents, HUL's magins in the segment declined from a high of 25.7% in CY02 to 13.7% in CY05.

COMPETITORSThe Fiama

The Fiama Di Wills range of soaps has been launched under the sub - brand SkinSense. The first variant to be introduced in this range is Soft Green. This is a gentle caring soap, which helps enhance retention of skin proteins making skin look beautiful and youthful. In February 2008, ITC launched two new ranges of soap - Vivel Di Wills and Vivel -to cater to the skincare needs of a wide range of consumers. Backed by consumer insights, the ranges offer a unique value proposition of bringing together ingredients that provide multiple benefits of Nourishment, Protection and Hydration in a single product. Hence providing the ever discerning consumer complete care. The packaging, reflecting the philosophy of the brand, fuses multiple benefits. The unique carton pack has been developed by ITC’s design team to provide a novel consumer experience.

FAIR ONE

'Fairone Fairness Cream' was launched jointly by Elder Pharmaceuticals and Shahnaz Husain. Elder Pharmaceuticals Ltd and Shahnaz Husain, herbal beauty specialist, had entered into an agreement to launch four skin care products during 2006-2007. Elder undertakes the manufacturing and marketing of the products, while the conception and composition is done by Husain. Elder Pharmaceuticals Ltd. is one of the leading companies in India in the skin care sector. The company is a major manufacturer of aloe vera-based skin care products.

A fair complexion has always been associated with success and popularity. Men and women alike desire fairness, it is believed to be the key to a successful life. Well for women the market is loaded with fairness cream but for men there are very few creams. Emami Fair and Handsome is one such cream for men. Emami herbalists and dermatologists from India along with Activor Corp USA, has created “Fair & Handsome” a fairness cream for Men with a breakthrough Five Power Fairness System to make skin fair and handsome in 4 weeks. Garnier

Garnier is a division of L'Oréal that produces hair care products, including the Fructis line, and most recently, skin care products under the name, Nutritioniste, that are sold around the world. One of their key ingredients is a fruit concentrate used in all their products. It is a combination of fruit acids, vitamin B3 and B6, fructose and glucose.

Competition

HUL 290.40 63,322.88 20,601.56 2,496.45 2,483.46 Dabur India 140.00 12,117.00 2,417.91 373.56 877.17 Colgate 669.45 9,104.04 1,770.82 290.22 220.98 Godrej Consumer

222.75 5,723.65 1,088.01 161.55 599.80

Godrej Ind 163.05 5,191.80 880.97 19.33 1,628.10 Marico 83.50 5,085.59 1,921.85 142.12 676.21 P and G 1,074.85 3,489.04 645.02 131.41 346.64 Gillette 920.55 2,999.63 588.84 117.37 425.40 Emami 414.15 2,573.74 651.01 67.36 324.20 Jyothy Labs 114.10 828.01 350.85 40.88 352.51

The above table shows the competition among the Indian FMCG brands. HUL is the leader of the market with maximum market capitalization and maximum sales turnover. The Net Profit stood at whooping 2500 crore approximately. HUL has Dominated the FMCG market but now faces a lot of competitors like ITC , Procter & Gamble, Godrej Consumer products, Marico etc.

From Source to Market (How HUL creates its Products)

Last Price Market Cap. (Rs.

cr.)

Sales Turnover

Net Profit Total Assets

HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall's – are household names across the country and span many categories - soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary products. They are manufactured over 37 factories across India. The operations involve over 2,000 suppliers and associates. HUL's distribution network, comprising about 2,500 redistribution stockists, covering 6.3 million retail outlets reaching the entire urban population, and about 250 million rural consumers. HUL has traditionally been a company, which incorporates latest technology in all its operations. The Hindustan Unilever Research Centre (HURC) was set up in 1958, and now has facilities in Mumbai and Bangalore. HURC and the Global Technology Centres in India have over 200 highly qualified scientists and technologists, many with post-doctoral experience acquired in the US and Europe. HUL believes that an organisation's worth is also in the service it renders to the community. HUL is focusing on health & hygiene education, women empowerment, and water management. It is also involved in education and rehabilitation of special or underprivileged children, care for the destitute and HIV-positive, and rural development. HUL has also responded in case of national calamities / adversities and contributes through various welfare measures, most recent being the village built by HUL in earthquake affected Gujarat, and relief & rehabilitation after the Tsunami caused devastation in South India. In 2001, the company embarked on an ambitious programme, Shakti. Through Shakti, HUL is creating micro-enterprise opportunities for rural women, thereby improving their livelihood and the standard of living in rural communities. Shakti also includes health and hygiene education through the Shakti Vani Programme, and creating access to relevant information through the iShakti community portal. The program now covers 15 states in India and has over 45,000 women entrepreneurs in its fold, reaching out to 135,000 villages and directly reaching to 150 million rural consumers. HUL is also running a rural health programme – Lifebuoy Swasthya Chetana. The programme endeavours to induce adoption of hygienic practices among rural Indians and aims to bring down the incidence of diarrhoea. It has already touched 120 million people in approximately 50, 676 villages across India. The vision is to make a billion Indians feel safe and secure. If Hindustan Unilever straddles the Indian corporate world, it is because of being single-minded in identifying itself with Indian aspirations and needs in every walk of life.

Advertisement Strategy of Unilever from last 10 years

Axe – Nightclub

In the mating game, dandruff is a no-no, so Axe has to deliver on its brand message.

2010 | USA

Dove - Men+Care

Dove’s first range for men helps them be as comfortable in their own skin as they are in their lives.

June 2010 | United States of America

Sunlight (Vim Bar) – Family Value

A glimpse into Indian family life, with the family’s monthly shopping spread out on the table.

2010 | India

Degree and Rexona – Tinkerbell

A swift sultry encounter between a glamorous hotel guest and a bell boy – but all in the interests of a good deodorant.

2009 | US and UK

Dove - Go Fresh

A new Dove Go Fresh Body Wash Energise advert takes a snippet of a young woman's daily showering routine.

December 2008 | United States of America

Lynx - Dark temptation

Winner of 2008 Film Gold Cannes, Best Film Gold San Sebastian Festival and Best Film NYC Festival.

Degree - Engineered

Degree's futuristic advert focuses on the superior antiperspirant qualities of their deodorant by comparing it to a competitor product.

November 2008 | United States of America

Impact on sales 10 yrs study

Unilever is one of the world’s leading suppliers of fast-moving consumer goods. We aim to meet everyday consumer needs for nutrition, hygiene and personal care with products that help people to feel good, look good and get more out of life. Unilever is a global business which by the end of the year was generating more than half of its turnover in developing and emerging markets in Asia, Africa, Central & Eastern Europe and Latin America. Unilever’s portfolio includes such well-known brands as Knorr, Lipton, Hellmann’s, Magnum, Omo, Dove, Lux and Axe/Lynx.

Our long-term ambition is to be in the top third of a group of 21 fast moving consumer goods companies in terms of total shareholder return on a three-year basis. A list of the companies included in our peer group in 2009.

Key indicators 2009 – performance and portfolio

During 2009, progress against our key financial performance indicators was as follows:

  2009 2008 2007

Underlying sales growth (%) 3.5 7.4 5.5

Underlying volume growth (%) 2.3 0.1 3.7

Operating margin (%) 12.6 17.7 13.1

Operating margin before RDIs (%) 14.8 14.6 14.5

Ungeared free cash flow (€ billion) 4.9 3.2 3.8

Return on invested capital (%) 11.2 15.7 12.7

Total shareholder return (ranking) 5 9 8

Underlying sales growth, underlying volume growth, operating margin before RDIs, ungeared free cash flow, return on invested capital and total shareholder return are not recognised measures under IFRS. Further information about our use of these measures, including definitions and, where appropriate, reconciliation to IFRS measures.

Underlying sales growth (USG) is defined as the percentage increase in turnover, adjusted for the impact of acquisitions and disposals and exchange rate fluctuations. In 2009, underlying sales growth was 3.5% compared with 7.4% in 2008. Underlying volume growth is underlying sales growth after excluding the impact of price changes.

How Unilever is using innovation to target global Issue

Innovation is the engine of Unilever’s growth; the lifeblood of our business. Our future depends on our ability to bring bigger & better innovations to market more quickly than our competitors.

Our leadership

Chief Research & Development Officer, Professor Geneviève Berger and President Global Foods, Home and Personal Care, Michael Polk, outline how our R&D teams create unique products with proven benefits for consumers around the world.

Research & development in Unilever

Research & development plays a key role in delivering proprietary breakthrough innovations. At Unilever, R&D is treated as an investment aligned closely with our overall business strategy.

The science behind success

The common thread running through all our R&D activities is a direct connection between science, technology and consumer needs.

Areas of innovation

Unilever is recognised as a world leader in R&D, both in terms of innovation (new products and mixes) and renovation (refreshing existing products).

How we work

We employ more than 6000 R&D professionals in six global research centres, 13 global product development centres and regional development & country implementation centres.

Responsible innovation

We believe our products make a real contribution to an individual’s wellbeing and that of their community, while having the least possible adverse effect on the environment at every stage in the product lifecycle.

The Loosing Brands

HUL losing money in the water-purifier business

HUL has lost Rs140 crore over the last six quarters in the water-purifier business and is facing tough competition from Tata’s water-purifier brand ‘Swach’

The water-purifier business is now a hot battlefield with the Tata group recently launching its ‘Tata Swach’. However, Hindustan Unilever Ltd (HUL), which also sells a non-electrical purifier ‘Pureit’ is going through a tough time. Over the past six quarters, HUL has lost about Rs140 crore in the water-purifier category, according to an industry report.

“Only a miniscule fraction of the population in India uses purifiers today. Pureit therefore sees its role as one of educating consumers, getting them to appreciate the benefits of safe water, and then adopting Pureit. In a sense, we see ourselves as helping build the water-purifier market in India. This task is very different from the task of competing with other brands for a share of an existing product market,” said an HUL company spokesperson.

For instance, HUL’s share in the skin care segment, its most profitable division which accounts for at least 45% of profits, has declined by more than 3 percentage points to 54% in the last two years. Last year, the company’s rival Procter and Gamble (P&G) launched high-end skin care products under the Olay brand that have since emerged a significant threat to HUL’s offerings in the segment.

“Olay is the fastest moving product on the skin care shelf despite being one of the most expensive brands,” said a senior executive at a leading supermarket in Mumbai who didn’t wish to be identified. “India, along with China, is the last

bastion for accelerating growth for most global consumer product companies. So, competition for HUL will continue to increase over the next few years,”

“The erosion (in HUL’s market shares) seen could be because of players such as Dabur India Ltd and Marico Ltd. These companies are innovating, spending aggressively on their marketing and advertising and strengthening their distribution network,” said Unmesh Sharma, an analyst at Macquarie Securities.

Survey

We have conducted the survey about the popularity of Hindustan Unilever Ltd products. We asked a few people from various backgrounds through various locations. We asked the questions about popularity of HUL brands. We asked the usage of Products of FMCG(Fast moving Consumer Groups). HUL brands

were very Popular. Our Findings: Soap In soap Category Hul’s Dove was most preferred followed by Lux, Pears and Cinthol. Dove is the brand of HUL so is Lux and Pears. So we can say that HUL enjoys Majority Of market Share. Detergents In Detergents category Surf Excel was preferred by majority of the people followe by Rin and Local detergents. Surf Excel was The market leader in this category. Shampoo In shampoo category Clinic and Head and shoulders faced stiff competition. Majority of the competitors had the market share. But HULs share was substantial. Toothpaste In Toothpaste category HUL was left tottering. Colgate enjoyed the market share while Closeup and Pepsodents market share was minimal. Perfume In Perfumes category Axe was clear favourite among the youth. Savy advertising has made the brand most popular and it enjoys majority of the market share. Fairness cream In the category of fairness creams market leader Fair and lovely faced a stiff competition from fairever and other brands. Still it hass held on to the majority of the market share. Cosmetic Brand In case of cosmetic brand Garnier of Loreal was the market leader. Even though Lakme was not far behind. Tea In case of tea category Market share was found to be relatively uneven. Tata tea has slight edge over other brands like Brookebond and Taj mahal were also popular. Coffee In case of Coffee Nescafe was the most popular. In the sample we surveyed It was preferred by all of them. Brooke bond of HUL was not even heard of in this category.

CONCLUSION

From The above Survey and through the findings of this project we can conclude that Hindustan Unilever was the most preferred Brand in India. It has

wide range of products varying from Home care to food care and Other FMCG categories. It has also launched water purifier. It was listed in ET-500 ranking of Indias biggest Companies and its ranking was number 32. Hindustan Unilever was the market leader in majority of the categories. Though it was popular but its advertising expenditure was also huge. It has increased its expenditure upto 26% in FY09. The net sales was Rs 4,475 crore in this period. According to Senior executive Harish Manwani the company was strengthening its competiveness through advertising and they see improved turnover in the near future. Thus we can state that HUL is ready to improve its product awareness in order to capture the majority of the market. Competitors beware the” Big Bull is coming to crush you”