INDEX

S.N. 01. 02. 03. 04. 05. 06. 07. 08. 09. 10 11. 12. SWOT ANALYSIS: TOPICS P.N . 1

INDUSTRY PROFILE OF HINDUSTAN UNILEVER LTD. 06 08 BOARD OF DIRECTORS IN HINDUSTAN UNILEVER LTD MISSION & VISION STATEMENT OF HINDUSTAN 09 UNILEVER LTD PRODUCTS OF HINDUSTAN UNILEVER LTD. FINANCIAL OVERVIEW OF HINDUSTAN UNILEVER LTD. MARKET SHARE OF HINDUSTAN UNILEVER LTD. SWOT ANALYSIS OF HINDUSTAN UNILEVER LTD. LIST OF COMPETITORS OF HINDUSTAN UNILEVER LTD RECOMMENDATION CONCLUSION BIBLIOGRAPHY 10 12 14 15 18 19 20 21

CHAPTER 1

SWOT ANALYSIS:
Introduction: SWOT analysis (alternately SLOT analysis) is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. The technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies. Setting the objective should be done after the SWOT analysis has been performed. This would allow achievable goals or objectives to be set for the organization.

Strengths: characteristics of the business, or project team that give it an advantage over others Weaknesses (or Limitations): are characteristics that place the team at a disadvantage relative to others Opportunities: external chances to improve performance (e.g. make greater profits) in the environment Threats: external elements in the environment that could cause trouble for the business or project

Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs. First, the decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is NOT attainable a different objective must be selected and the process repeated. The SWOT analysis is often used in academia to highlight and identify strengths, weaknesses, opportunities and threats. It is particularly helpful in identifying areas for development.

Background and History of SWOT:

The origins of the SWOT analysis technique is credited by Albert Humphrey, who led a research project at Stanford University in the 1960s and 1970s using data from many top companies. The goal was to identify why corporate planning failed. The resulting research identified a number of key areas and the tool used to explore each of the critical areas was called SOFT analysis. Humphrey and the original research team used the categories What is good in the present is Satisfactory, good in the future is an Opportunity; bad in the present is a Fault and bad in the future is a Threat. In 1964 Urick and Orr at a conference changed the F to a W, and it has stuck as that, soFt to sWot Some researchers reference the 1965 publication business Policy, text and cases by Learned, Christensen, Andrews and Guth (from Harvard University) in which a framework is used which closely resembles SWOT, however these words are not used and certainly the framework is not described as succinctly as we know it today. In this book the terms used are: Opportunities, risks, environment & problems of other industries. In fact these authors reference a course note from K R Andrews a concept of corporate strategy for much of the strategy framework. On its own, it is said that a SWOT is meaningless. It works best when part of an overall strategy or in a given context or situation. This strategy may be as simple as: 1. Goal or objective 2. SWOT analysis 3. Evaluation or measures of success strategy 4. Action This is sometimes known as the 4As model Aim, Assess, Activate and apply where: Aim is the Goal or objective Assess is the SWOT review itself

Activate identify the strengths or measures of success and use them to advantage Apply - take action

Internal & External factors:

The aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. These come from within the company's unique value chain. SWOT analysis groups key pieces of information into two main categories:

Internal factors The strengths and weaknesses internal to the organization. External factors The opportunities and threats presented by the external environment to the organization.

The internal factors may be viewed as strengths or weaknesses depending upon their impact on the organization's objectives. What may represent strengths with respect to one objective may be weaknesses for another objective. The factors may include all of the 4P's; as well as personnel, finance, manufacturing capabilities, and so on. The external factors may include macroeconomic matters, technological change, legislation, and socio-cultural changes, as well as changes in the marketplace or competitive position. The results are often presented in the form of a matrix. SWOT analysis is just one method of categorization and has its own weaknesses. For example, it may tend to persuade companies to compile lists rather than think about what is actually important in achieving objectives. It also presents the resulting lists uncritically and without clear prioritization so that, for example, weak opportunities may appear to balance strong threats. It is prudent not to eliminate too quickly any candidate SWOT entry. The importance of individual SWOTs will be revealed by the value of the strategies it generates. A SWOT item that produces valuable strategies is important. A SWOT item that generates no strategies is not important.

Use of SWOT:

The usefulness of SWOT analysis is not limited to profit-seeking organizations. SWOT analysis may be used in any decision-making situation when a desired endstate (objective) has been defined. Examples include: non-profit organizations, governmental units, and individuals. SWOT analysis may also be used in pre-crisis planning and preventive crisis management. SWOT analysis may also be used in creating a recommendation during a viability study /survey. SWOT Matrix: POSITIVE/ HELPFUL to achieving the goal NEGATIVE/ HARMFUL/ RISKS to achieving the goal

INTERNAL Origin facts/ factors of organization

Strengths Weaknesses the Things that are good now, Things that are bad now, maintain them, build on remedy, change or stop them and use as leverage them.

EXTERNAL Origin Threats Opportunities facts/ factors of the Things that are bad for the Things that are good for environment in which the future, put in plans to the future, prioritize them, organization operates manage them or counter capture them, build on them them and optimize

How to do a SWOT analysis:

Irrespective of whether you or your team are future planning for specific products, work, personal or any other area, the SWOT analysis process is the same. Step 1 Information collection in the here and now List all strengths that exist now. Then in turn, list all weaknesses that exist now. Be realistic but avoid modesty! You can conduct one-on-one interviews. Or get a group together to brainstorm. A bit of both is frequently best.

Youll first want to prepare questions that relate to the specific company or product that you are analyzing. Youll find some questions and issues below to get you going. When facilitating a SWOT search for insight through intelligent questioning and probing Step 2 What might be lists all opportunities that exist in the future. Opportunities are potential future strengths. Then in turn, list all threats that exist in the future. Threats are potential future weaknesses. Step 3 Plan of action Review your SWOT matrix with a view to creating an action plan to address each of the four areas.

Aim of SWOT analysis: Reveal your competitive advantages Analyze your prospects for sales, profitability and product development Prepare your company for problems Allow for the development of contingency plans A SWOT analysis is a process to identify where you are strong and vulnerable where you should defend and attack. The result of the process is a plan of action, or action plan. The analysis can be performed on a product, on a service, a company or even on an individual. Done properly, SWOT will give you the BIG PICTURE of the MOST IMPORTANT FACTORS that influence SURVIVAL and PROSPERITY. As well as a PLAN to ACT ON.

Rules for successful SWOT analysis:

Be realistic about the strengths and weaknesses of your organization The Analysis should distinguish between where your organization is today, and where it could be in the future. Be specific. Avoid gray areas Always analyze in relation to your competition i.e. better than or worse than your competition Keep your SWOT short and simple but only as short and simple as the application or situation demands it is about fitness for purpose Avoid unnecessary complexity and over analysis

There is no point listing an opportunity (O) if the same opportunity is available to competitors It is pointless to say you have strengths (S) if your competitors have the same

CHAPTER 2

INDUSTRY PROFILE OF HINDUSTAN UNILEVER LIMITED :

The mission that inspires HUL's 36,000 employees, including over 1,350 managers, is to "add vitality to life." HUL meets every day needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. It is a mission HUL shares with its parent company, Unilever, which holds 51.55% of the equity. The rest of the shareholding is distributed among 380,000 individual shareholders and financial institutions. HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, KnorrAnnapurna, 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 in close to 80 factories. The operations involve over 2,000 suppliers and associates. HUL's distribution network, comprising about 7,000 redistribution stockiest directly covers 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 Lever Research Centre (HLRC) was set up in 1958, and now has facilities in Mumbai and Bangalore. HLRC and the Global Technology Centers in India have over 200 highly qualified scientists and technologists, many with post-doctoral experience acquired in the US and Europe. 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 Over the last three years the company has embarked on ambitious programs, 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 Program, and creating access to relevant information through the iShakti community portal. The program now covers about 50,000 villages in 12 states. HUL's vision is to take this program to 100,000 villages impacting the lives of over a 100 million rural Indians. HUL is also running a rural health program Lifebuoy Swasthya Chetana. The Program endeavor theirs to induce adoption of hygienic practices among rural Indians and aims to bring down the incidence of diarrhea. It has already touched 70 million

Peoples in approximately 15000 villages of 8 states the vision is to make a billion Indians feel safe and secure. If Hindustan Lever 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.

CHAPTER 03

BOARD OF DIRECTORS OF HUL LIMITED:

Mr. Harish Manwani Chairman Mr. Nitin Paranjpe Managing Director and Chief Executive Officer Mr. Sridhar Ramamurthy Executive Director, Finance & IT and Chief Financial Officer Mr. D. S. Parekh Independent Director Mr. A. Narayan

Independent Director Mr. S. Ramadorai Independent Director Dr. R. A. Mashelkar Independent Director Mr. Gopal Vittal Executive Director, Home & Personal Care Mr. Pradeep Banerjee Executive Director, Supply Chain

CHAPTER 04

Mission
1. To add Vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. 2. To help people feel good, look good and get more out of life

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.

CHAPTER 05 PRODUCTS 1. Hindustan unilever ltd a. Personal wash Lux, lifebuoy, dove Pears, rexona, breeze, b. Laundry Surf excel Wheel sunlight c. Skin care Fair & lovely Ponds vaseline

d. Hair care Sunsilk Clinic e. Oral care Pepsodent closeup f. Deodorants Axe rexona g. Color cosmetics lakme h. ayurvedic ayush

CHAPTER 06

HINDUSTAN UNILEVER LIMITED INDIAS LARGEST FMCG COMPANY:

FINANCIAL OVERVIEW OF HINDUSTAN UNILEVER LTD:

CHAPTER07

MARKET SHARE

Total Turnover (in US$)

This chart explains more about the market share of HUL. The Total turnover of Hul was 2268 million US$ way ahead of its competitors like Nestle, Dabur, Godrej, Marico etc. HUL or Hindustan Unilever is the number one Indian Brand. It is The Market leader in number of products. In 2007, Hindustan Unilever was rated as the most respected company in India for the past 25 years by Business World, one of Indias leading business magazines. 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. It has over 35 brands. Sixteen of HULs brands featured in the AC Nielsen-Brand Equity list of 100 Most Trusted Brands Annual Survey (2008). According to Brand Equity, HUL has the largest number of brands in the Most Trusted Brands List. CHAPTER 08

SWOT ANALYSIS OF HUL

Strength: HUL enjoys a formidable distribution network covering over 3400

distributors and 16 million outlets. The new sales organization named 'One HUL' brings "Household and Personal Care" and foods distribution networks together, thereby aligning all the units towards the common goal of achieving success. HUL has been continuously able to grow at a rate more than growth rate for FMCG Sector, thereby reaffirming its future stronghold in Indian market. Strong brand portfolio, price quantity & variety. Innovative Aspects. Presence of Established distribution networks in both Urban and rural areas. Solid Base of the company. Corporate Social Responsibility(CSR)

Weaknesses: HUL market dominance, originating from its extensive reach

and strong brand presence, allowed it to raise the prices even as raw materials were getting cheaper. Hence, though the volumes decreased, the margins grew, and company was able to earn more profits. But higher margins attracted competition in areas of operations. HUL strategy remained focused on creating power brands and earning higher margins. It was not left with any other option but to try cutting down the costs in order to protect volumes, if not increase it. "Me-too" products which illegally mimic the labels and brands of the established brands. Strong Competitors & availability of substitute products. Low exports levels. High price of some products.

 High Advertising Costs.

Opportunities: India is one of the world's largest producers of FMCG goods

but its exports are miniscule as compared to production. Though Indian Cos. has been going global, their focus is more towards Asian countries because of the similar preferences. HUL is one of the top companies exporting FMCG goods from India. An expansion of horizons towards more and more countries would help HUL grow its consumer base and henceforth the revenues. Penetration levels for some major categories like skin-cream (22%), shampoo (38%), toothpaste (48%) and processed foods, continue to remain low offerings but great growth opportunities products. Large domestic market over a billion populations . Untapped rural market. Changing Lifestyles & Rising income levels, i.e. increasing per capita income of consumers. Export potential and tax & duty benefits for setting exports units.

Threats: ITC has reduced its dependence on the cigarettes business Contribution of the core business in revenues has come down from 87% in FY99 to 70% in FY05. Over a period of five years, ITC has extended its presence into areas like foods, retailing, hotels, greetings, agriculture, paper, etc. These are businesses that can give it growth impetus in the long run. With ITC gaining momentum in each of these businesses, it is turning into a consumer monolith, and hence, the greatest threat to HUL's Business. Tax and regulatory structure.

 Mimic of brands Removal of import restrictions resulting in replacing of domestic brands. Temporary Slowdown in Economy can have an impact on FMCG Industry.

CHAPTER 09

LIST OF COMPETITORS:

The analysis begins with a list of Hindustan Unilever Limited (HUL) competitors. Most of the time, such a list is comprised of what company co-considers to be its chief competitors. However, there may be other companies that indirectly compete with HUL, ones that offer products or services that are aiming for the same customer capital. Hindustan Unilever Limited (HUL) competitors in the market are: Nirma Nestle Britannia Dabur, Colgate Marico tata tea P&G GSK GCPL Gillette

CHAPTER 10

RECOMMENDATIONS:
Price structure should be revised Customer service is something which company should pay more attention at. All models not available for display in retail outlets and also brochures should Be made available. Sales person at the retails counters should have proper knowledge about the product. Should focus more on brand awareness. Technological & other aspects should be re considered and re-christened

CHAPTER 11

CONCLUSION
Hindustan Lever Limited has established it roots successfully in the Indian market with HUL products becoming a household preference in almost all the major cities. But with the increasing number of competitors in the FMCG industry, HUL should gear up to compete with them. The biggest rival in the market is Procter & Gamble that is threatening HULs strong hold by introducing cost leadership strategies and price cuts. Whereas, at the local from numerous small to medium sized firms are enjoying the benefit of local presence thorough TV ads and low cost products. For some time now HUL pursued the strategy of P&G but it could not reap similar benefits and the strategy is now shrinking HULs profit margins. Moreover, with increased saturation in the industry HUL is facing problems positioning its power brands as consumers buying pattern is changing. It is found out that the problems with the HUL are primarily related to the environment in which the company is operating. The HUL management should scan and evaluate its internal and external environment and then re-align its strategies accordingly. HUL should allocate its advertisement budgets more evenly among the major cities and small towns to compete with the international as well as local competitors alike. HUL should focus on market research and product development more. This is very crucial activity if the company wants to see steady growth in future. Innovation is the key to success here. HUL should seriously start developing improved products to cater the emerging needs of the consumers.

CHAPTER 12

BIBLIOGRAPHY: www.google.com www.yahoo.com www.wikipedia.com