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Hindustan Unilever Ltd.

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INTRODUCTIONINTRO

India's largest Fast Moving Consumer Goods company with 80 factories across

India.

In 1931, first Indian subsidiary, Hindustan Vanaspati Manufacturing Company,followed by Lever Brothers India Limited (1933) and United Traders Limited (1935).

HUL formed in November 1956;

The Anglo-Dutch company Unilever owns a majority stake in HindustanUnilever Limited.

The mission add vitality to life.

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Contd..

Sales growth in 2008-09 is 15.5%

Operating margin increased by 0.4% from14% to 14.4% in the year 2008-09

Gross sales is 21649.51 crores

Share price Rs237.50

HUL is the market leader in the soap

segment in India

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STRATEGIC THINKING

VISION:HUL's vision is to continuously innovate technologies to further

reduce water consumption and further increase conservation inits operations. Simultaneously, HUL sites will progressivelyhelp communities, wherever required, to develop watersheds.

MISSION OF HUL:

Unilever's mission is to add Vitality to life. We meet everydayneeds for nutrition, hygiene, and personal care with brands thathelp people feel good, look good and get more out of life.

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CORPORATE PUPROSE

Unilever's mission is to add Vitality to life. We meet everydayneeds for nutrition; hygiene and personal care with brandsthat help people feel good, look good and get more out oflife.

Our deep roots in local cultures and markets around the worldgive us our strong relationship with consumers and are thefoundation for our future growth. We will bring our wealthof knowledge and international expertise to the service oflocal consumers - a truly multi-local multinational.

Our long-term success requires a total commitment toexceptional standards of performance and productivity, toworking together effectively, and to a willingness toembrace new ideas and learn continuously.

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PRODUCT SEGMENTATION OF HUL

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0%

10%

20%

30%

40%

50%

60%

70%

80%

HUL

MP I

MP I IV SI UA I N F HUL WI H I S MP I S

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Competitors of HUL SOAPS

HUL brands

Lux

Rexona

Breeze

Lifebuoy

Pears

Dove

Hamam

Competitors brands

Santoor, Chandrika

Cinthol, Mysore Sandal

Godrej no. 1, Nirma

Dettol

Santoor,

Camay

Margo

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57%

55% 55%

52%

10%9%

8% 8%9%

5%

HULs SOAP MARKETSHARE

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SWOT ANALYSISStrengths:

Strong brand portfolio, price, quantity & variety.

Innovative Aspects.

Presence of Established distribution networks in

both urban and rural areas.3400 distributers

16 million outlets over the world.

700 million customer base.

Strong R&D of the company Highly skilled human resource.

Corporate Social Responsibility (CSR)

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Weaknesses:Strong Competitors.

High advertising costs

Complex supply chain configuration, unwieldy number. Of SKUs with

dispersed

manufacturing locations.

Price positioning in some categories allows for low price competition.

Opportunities:

Large domestic market over a billion population.

Untapped rural market.

Changing Lifestyles & Rising income levels, i.e.

increasing per capita income of consumers.

Threats: Tax and regulatory structure.

Mimic of brands

Entry of ITC in FMCG sector.

Increasing cost of raw material

SWOTAnalysis

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PORTERS FORCES

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RIVALS

Consumer in this category enjoy

multitude of choices.

It does not cost anything for a

consumer to buy one brand of

shampoo instead of another, makingthe industry quite competitive.

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SUPPLIERS

Consumer product faces some amount ofsupplier power simply because of the

cost they incur when switching suppliers

Suppliers that do a large amount of

business with these companies are alsobeholden to their customers.

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BUYERS(CUSTOMERS)

Consumer faces weak buying powerbecause customers are fragmented and

have little influence on price or

product.

Considering buyer power retailers it is

very high since they are able tonegotiate the price with the companies.

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POTENTIAL ENTRANTS

Given the amount of capital investmentneeded to enter certain segment inhouse hold consumer products, thethreat of new entrant is fairly low.

Whether the new entrant can get itsproducts on the shelves of the sameretailers as its much larger rivals.

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THREAT OF SUBSTITUTE

Within the consumer product industry, brand

succeeds in helping to build a competitive

advantage, but even the pricing power of

the brands can be eroded.

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PESTANALYSIS

POLITICAL Legislation such as the minimum wage or anti discrimination

laws.

Voluntary codes and practices

Market regulations

Trade agreements, tariffs or restrictions

Tax levies and tax breaks

Type of government regime eg communist, democratic,

dictatorship

ECONOMICAL

Recession will have high unemployment, low spending

power and low stakeholder confidence

Cheaper labour in developing countries affects the

competitiveness of products from developed countries

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SOCIAL Changes in the structure of a population will affect the supply and

demand of goods and services within an economy.

Falling birth rates will result in decreased demand and greatercompetition as the number of consumers fall.

Organisationsmust be able to offer products and services that aim tocomplement and benefit peoples lifestyle and behavior.

TECHNOLOGICAL

Advanced technology for manufacturing process which give low costadvantage.

Technology infrastructure such as the internet and other informationexchange systems including telephone

Technology systems incorporating a multitude of software whichhelp them manage their business.

Technology hardware such as mobile phones, Blackberrys, laptops,desktops, Bluetooth devices, photocopiers and fax machines whichtransmit and record information.

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STRATEGIES FOLLOWED AT HUL

Distribution strategy.Distribution network (direct selling)

Brand extension strategy

Line extension strategy

Repositioning strategy

Promotional strategy-ads,(Rs700-800 cr)Segmentation strategy

Premium brand

Affordable brand

Value for moneyInnovation strategy-introduction of sachet in shampoo

Mergers and acquisitions strategy

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Thank U