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Hindustan Lever Ltd.

Hindustan Unilever Ltd.

IS NOW

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Mr. Harish Manwani

Chairman

Mr. Douglas BaillieBaillie

CEOCEO

VISION



INTRODUCTION

INTRO

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

In 1931, first Indian subsidiary, Hindustan VanaspatiManufacturing 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 inHindustan Unilever Limited.

The mission – “add vitality to life.”



Contd..

• Sales growth in 2008-09 is 15.5%

• Operating margin increased by 0.4%from 14% to 14.4% in the year 2008-09

• Gross sales is 21649.51 crores

• Share price Rs 237.50



PRODUCT SEGMENTATIONOF HUL



0%

10%

20%

30%

40%

50%

60%

70%

80%

HUL

COMPETITOR

COMPETITIVE SITUATION OF HUL WITH ITS

COMPETITORS



PERSONAL WASH BY HUL

HUL is the market leader in the soap

segment in India

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Competitors of HULSOAPS

HUL brands

• Lux

• Rexona

• Breeze

• Lifebuoy

Competitorsbrands

• Santoor, Chandrika

• Cinthol, MysoreSandal

• Godrej no. 1, Nirma

• Dettol



Competitors of HULSOAPS

HUL brands

• Pears

• Dove

• Hamam

Competitors brands

• Santoor,

• Camay

• Margo



57% 55% 55%

52%

10%9% 8% 8% 9%

5%

HUL’s SOAP MARKETSHARE



The HUL Hair Care



Competitors of HUL HairCare

• Sunsilk

• Clinic Plus

• Dove

• Pantene

•

Head &Shoulders

• L’Oreal, Garnier



e come o esegment Of

HUL Oral Care



Competitors of HUL OralCare

• Pepsodent

• Close Up

• Colgate

• Meswak

• Dabur Red

• Anchor



48%

32%

2%

46% 47%

7%

30%

8%

30%

7

%

TOOTHPASTE MARKET SHARE



HUL COSMETICS



Competitors of HULCosmetics

Lakme

Ponds

Revlon

Maybelline

L’OrealNivea

Charmise



COMPETITORS

• SURF EXCEL: ARIEL

• WHEEL: NIRMA

• RIN: TIDE



SWOT ANALYSIS

Strengths:

• Strong brand portfolio,price,quantity &variety.

• Innovative Aspects.• Presence of Established distributionnetworks in both

urban and rural areas.3400 distributers16 million outlets over the world.700 million customer base.•

Strong R&D of the company• Hi hl skilled human resource.



Weaknesses:

Strong Competitors.

Low exports level(at present).

Changing consumption pattern.

High advertising costs.

SWOT Analysis



Opportunities:

Large domestic market – over a billion population.

Untapped rural market.Changing Lifestyles & Rising income levels, i.e. increasingper capita income of consumers.

SWOT

Analysis



Threats: Tax and regulatory structure.

Mimic of brands Entry of ITC in FMCG sector. Increasing cost of raw material.

SWOT Analysis



STRATEGIC FOCUS OFUNILEVER

25

• Remain in tune with its marketsand stays ahead of thecompetition



STRATEGIES FOLLOWED AT HUL

Distribution strategy.

Distribution network(direct selling)Brand extension strategyLine extension strategyRepositioning strategy

Promotional strategy-ads,(Rs700-800 cr)Segmentation strategyPremium brandAffordable brandValue for moneyInnovation strategy-introduction of sachet in shampooMergers and acquisitions strategy



RKETING STRATEGIES OF

S TRA TE

GIES I

HA VE



MARKETING STRATEGIES OF HULFOR URBAN INDIA

• Focuses on short supply chain for distribution.

• To meet the every need of people everywhere.

• Build segments & market for the future where

Unilever has strong expertise.

• Also uses Direct selling channel, franchisee to reacheveryone e.g. Unicare.



For long term benefits, HUL started ProjectStreamline in 1997.

MARKETING STRATEGIES OFHUL

FOR RURAL INDIA

Project Shakti, partnership withSelf help groups of Rural women &covers 5000 villages in 52 districts

in different states.

Appointed 6000 Sub-stockists that

directly covers about 50,000 villages &250 million customers.

Integrate Economic, Environment & Socialobjectives with Business agenda.



EVERYDAY I WILLSELL.EVERYDAY I WILLEARN.MONEY. RESPECT

Started in 2001, Shakti is HUL's rural initiative, which targets small

villages with population of less than 2000 people or less.

micro-enterprise opportunities for rural women

Providing health n hygiene education through shaktivani program

ishakti portal

Shakti has already been extended to about 15 states ,80,000villages in with 45,000 women entrepreneurs and generatingRs.700-1000 per month to each women.



PORTER’S FORCES



PORTER’S DIAGRAM



RIVALS

Consumer in this category enjoy

multitude of choices.

It does not cost anything for aconsumer to buy one brand of

shampoo instead of another,making the industry quite

competitive.



SUPPLIERS

Consumer product faces someamount of supplier power simply

because of the cost they incurwhen switching suppliers

Suppliers that do a large amount of business with these companies

are also beholden to their

customers.



BUYERS(CUSTOMERS)

Consumer faces weak buyingpower because customers are

fragmented and have little

influence on price or product.

Considering buyer power retailersit is very high since they are able

to negotiate the price with thecompanies.



POTENTIAL ENTRENT

Given the amount of capitalinvestment needed to enter

certain segment in house hold

consumer products, the threat of new entrant is fairly low.

Whether the new entrant can getits products on the shelves of thesame retailers as its much larger

rivals.



THREAT OF SUBSTITUTE

Within the consumer product industry,brand succeeds in helping to build acompetitive advantage, but even the

pricing power of the brands can beeroded.

C t i l



Corporate socialresponsibility

Providing education on health and hygiene

Women empowerment

Water management

Rehabilitation of special or underprivilegedchildren

Care for the destitute and HIV-positive

Rural development.

Plays active role in natural calamities



STRATEGIES…..

41



HUL should………

42



Thank you for

your time....

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