HUL Business Strategy
HUL Business Strategy
HUL Business Strategy
The company was renamed in late June 2007 as "Hindustan Unilever Limited".
PRODUCT LINE
(A) HOME AND PERSONAL CARE:
(1) Personal wash : Lux, Breeze, Lifebuoy, Dove, Liril, Pears, Hamam, Rexona
(2) Laundry: Surf Excel, Rin, Wheel
(3) Skin Care: Fair and lovely, Pond’s, Aviance
(4) Hair care : Sunsilk naturals, Clinic
(5) Dental care: Pepsodent, Close up
(B) FOODS
Market Share
As mentioned in the above graph, HUL is enjoying the leader position in the market and is
having highest market shares which are followed by the market challengers like Dabur India
Ltd, Nestle India Ltd, and ITC LTD, ETC…..In different categories of FMCG products
likeshampoo, skincare , deo, jams, coffee, etc.
In the below pie chart we see the position of various FMCG companies doing business in
India. We can see that HUL is enjoying the position of market leader and is followed by ITC
as close second in the market share of FMCG products.
MARKET SHARE OF FMCG COMPANIES IN INDIA
OTHERS
19%
HUL
35%
DABUR
4%
BRITANNIA
6%
NESTLE
8%
ITC
29%
DATA ANALYSIS:
We have the sales and profit figures of HUL from the year 1999 to 2009 in the 10year past data
from Yr1999-2009, after plotting two graph one of sales & other of profit as shown in here we
can see that both profit and sales of the company rose from the year 1999 till 2001, but in the
year 2002 we see that the sales fell but there was actually rise in the profit of the company . In
the year 2004 we see that there was a steep fall in the profit of the company and from the year
2005 onwards there was a slow but steady rise in the profit of the company, but a rapid rise in the
sales of the company in the given years.
Reason for the steep fall in the profit of the company in the year 2004:-
The FMCG market in Urban India was attaining the saturation level and so companies had to
expand its market in rural India. This resulted in the downfall in the profit of HUL. There was
very aggressive advertising campaign by ITC in that year to set itself in the market this affected
HUL who was enjoying the position of market leader and resulted in the fall in the profit of the
company.
In the following graph we can see thepercentage growth in FMCG sales of HUL from March
quarter ’07 to March quarter ’08.
CATEGORY %AGE
Beverages 13.6
Others 19.4
25
22.4
20 19.3 19.4
15.7
15 13.7 13.6
10
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Segmentation
The customer of HUL products is every one. Starting with child, youth to old age as well.
Women are fond of the product of HUL. All product are available for women’s needs &
desires
So, HUL is targeting as a whole for its product.
Marketing Strategies
Marketing Strategies for Urban Areas
Focuses on short supply chain for distribution.
Meet every need of people everywhere.
Build segments & market for the future wise Unilever has strong expertise.
Emphasis on Direct selling, Franchisee to reach everyone .
Marketing Strategies for Rural Areas
For long term benefit HUL started PROJECT STREAMLINE in 1997.
Appointed 6000 sub–stockists that directly covers about 50000 villages & 250million
customers.
Integrate, economic, environment, & social objective with Business Agenda.
Promotion Strategy
Project Shakti :- This project was started for Co’s promotion in rural market as well as
women empowerment. HUL's partnership with Self Help Groups of rural women. It was
started in 2001, Project Shakti has already been extended to about 50,000 villages in 12
states - Andhra Pradesh, Karnataka, Gujarat and others.
Hindustan Unilever Network (HUN) :- It is the company's arm in the Direct Selling
channel. It presents a range of customised offerings in Home & Personal Care and Foods.
Out-of-Home :- This deals in providing vending machines for hot beverages like tea and
coffee. HUL’s alliance with Pepsi Co. has significantly strengthened the channel.
Health and Beauty services :- (i) Lakme Salons provide specialised beauty services and
solutions, under the recognised authority of the Lakme brand. (ii) The Ayush Therapy
Centres provide easy access to authentic Ayurvedic treatments and products.
Corporate Social Responsibility
Yashodadham: After the devastating earthquake in 2001, HUL reconstructed a village in the
Kachchh district , Gujarat.
• School building.
• Health centre.
• All the structures are earthquake and cyclone-resistant.
• Underground reservoir and an overhead tank for water.
Tondiarpet
Rs. 10 crore - relief and rehabilitation of Tsunami affected families by way of relief
material, land and towards construction of facilities.
distribution of bread and biscuits to over 500 families in Pondicherry,
12,000 cooked meals for families in Chennai, Nagapattinam, Cuddalore and Andamans.
Bihar Floods:
After the floods in Bihar in 2008, HUL contributed 10, 000 kits worth Rs. 60 lakh as first
instalment of relief material for the immediate relief of the flood affected families of Araria
District in Bihar.