Business Orientation Project

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JAIPURIA INSTITUTE OF MANAGEMENT,

NOIDA

BUSINESS ORIENTATION PROJECT


REPORT
ON
COMPREHENSIVE STUDY OF
HINDUSTAN UNILEVER LIMITED

GUIDED BY: SUBMITTED BY:


Mrs VRANDA JAIN MAHAK GUPTA

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ACKNOWLEDGEMENT
I am over helmed in all humbleness and gratefulness to acknowledge my depth to all those
who have helped me to put these ideas, well above the level of simplicity and into something
concrete.
I would like to express my special thanks of gratitude to Vranda Jain Ma’am as well as our
director who gave me the golden opportunity to do this wonderful project on the topic
(Comprehensive Study of Hindustan Unilever Limited), which also helped me in doing a lot
of Research and i came to know about so many new things. I am really thankful to them.
Any attempt at any level can ‘t be satisfactorily completed without the support and guidance
of MY parents and friends.
I would like to thank my parents who helped me a lot in gathering different information,
collecting data and guiding me from time to time in making this project, despite of their busy
schedules, they gave me different ideas in making this project unique.
Thank You

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EXECUTIVE SUMMARY
Hindustan Unilever Limited is the Indian arm of the Anglo-Dutch company –Unilever. Both
Unilever and HUL have established themselves well in the Fast-Moving Consumer Goods
(FMCG) category. In India, the company offers many households brands like, Dove,
Lifebuoy, Lipton, Lux, Pepsodent, Ponds, Rexona, Sun silk, Surf, Vaseline etc. Some of its
efforts were also rewarded when four of HUL brands found place in the ‘Top 10 brands’ list
for the year 2008 published in The Economic Times.
Unilever was a result of the merger between the Dutch margarine company, Margarine Unie,
and the British soap-maker, Lever Brothers, way back in 1930. For 70 years, Unilever was
the undisputed market leader but now faces tough competition from Proctor & Gamble and
Colgate-Palmolive. HUL is also known for its strong distribution network in India. In order to
further strengthen its distribution in the rural areas and to empower the local women, HUL
launched a project Shakti in 2000 in a district in Andhra Pradesh. The idea behind this project
was to create women entrepreneurs and provide them with micro-credit and training in
enterprise management, which would enable them to create self-help groups and become
direct-to-home distributors of HUL products. Today Shakti is present across 80,000 villages
in 15 states and is helping many underprivileged women earn their livelihood. As the per
capita income of India increasing along with the Indian population. So, the future for the
FMCG Companies is bright. We have a listed the different FMCG product lines of HUL.

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TABLE OF CONTENT

S. No Content Page No
1. Acknowledgement 2
2. Executive Summary 3
3. History of HUL 5
4. Leadership Profiles of HUL 8
5. Brands of HUL 10
6. Competitors of HUL 16
7. Market Share as compared to Competitors 19
8. Distribution Strategy 20
9. Advertisements of HUL 22
10. Sales Promotion of HUL 24
11. CSR Activities 25
12. Recommendation 27
13. Conclusion 28

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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 billion in 2009 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.

Our history
In the summer of 1888, visitors to the Kolkata harbor 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 HUL in November 1956; HUL offered 10%
of its equity to the Indian public, being the first among the foreign subsidiaries to do so.
Unilever now holds 52.10% equity in the company. The rest of the shareholding is distributed
among about 360,675 individual shareholders and financial institutions.

The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the company
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 was incorporated.

Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold
through an international acquisition of Chesbrough Pond's USA in 1986.

Since the very early years, HUL has vigorously responded to the stimulus of economic
growth. The growth process has been accompanied by judicious diversification, always in
line with Indian opinions and aspirations.

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The liberalisation of the Indian economy, started in 1991, clearly marked an inflexion in
HUL'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. In one of the


most visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills
Company (TOMCO) merged with HUL, effective from April 1, 1993. In 1996, HUL and yet
another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Unilever
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 HUL and divested its
50% stake in the joint venture to the company.

HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994,
Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary Pads. HUL
has also set up a subsidiary in Nepal, Unilever Nepal Limited (UNL), and its factory
represents the largest manufacturing investment in the Himalayan kingdom. The UNL factory
manufactures HUL'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 alliances on 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 Ice-cream business from Cadbury India.

As a measure of backward integration, Tea Estates and Doom Dooma, two plantation
companies of Unilever, were merged with Brooke Bond. Then in 1994, 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 Ice-cream Group families and in 1995 the
Milk food 100% Ice-cream marketing and distribution rights too were acquired.

Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal
restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL 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 domestic and export
markets and enable it to fund investments required for aggressively building new categories.

In January 2000, in a historic step, the government decided to award 74 per cent equity in
Modern Foods to HUL, thereby beginning the divestment of government equity in public
sector undertakings (PSU) to private sector partners. HUL's entry into Bread is a strategic
extension of the company's wheat business. In 2002, HUL acquired the government's
remaining stake in Modern Foods.

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In 2003, HUL acquired the Cooked Shrimp and Pasteurised Crabmeat business of the
Amalgam Group of Companies, a leader in value added Marine Products exports.

HUL launched a slew of new business initiatives in the early part of 2000’s. Project Shakti
was started in 2001. It is a rural initiative that targets small villages populated by less than
5000 individuals. It is a unique win-win initiative that catalyses rural affluence even as it
benefits business. Currently, there are over 45,000 Shakti entrepreneurs covering over
100,000 villages across 15 states and reaching to over 3 million homes.

In 2002, HUL made its foray into Ayurvedic health & beauty centre category with the Ayush
product range and Ayush Therapy Centres. Hindustan Unilever Network, Direct to home
business was launched in 2003 and this was followed by the launch of ‘Pure it’ water purifier
in 2004.

In 2007, the Company name was formally changed to Hindustan Unilever Limited after
receiving the approval of shareholders during the 74th AGM on 18 May 2007. Brooke Bond
and Surf Excel breached the Rs 1,000 crore sales mark the same year followed by Wheel
which crossed the Rs.2,000 crore sales milestone in 2008.

On 17th October 2008, HUL completed 75 years of corporate existence in India.

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LEADERSHIP PROFILES OF HUL

SANJEEV MEHTA CHAIRMAN AND MANAGING DIRECTOR


Mr Sanjeev Mehta (60) is the Chairman and Managing Director of
Hindustan Unilever Limited. He also leads Unilever’s South Asia
business as President, Unilever, South Asia and is a member of
the Unilever Leadership Executive.

RITESH TIWARI EXECUTIVE DIRECTOR, FINANCE AND CHIEF FINANCIAL


OFFICER

Mr Ritesh Tiwari (45) is the Executive Director, Finance and Chief


Financial Officer of Hindustan Unilever Limited. He is also the Vice
President, Finance for Unilever, South Asia.

WILLEM UIJEN EXECUTIVE DIRECTOR, SUPPLY CHAIN

Mr Willem Uijen (46) is the Executive Director, Supply Chain of


Hindustan Unilever Limited. He also leads the Supply Chain
function for Unilever, South Asia.

DEV BAJPAI EXECUTIVE DIRECTOR, LEGAL AND CORPORATE AFFAIRS AND


COMPANY SECRETARY

Mr Dev Bajpai (55) has been a member of the Management


Committee of HUL since May 2010 and was inducted on the Board
of Directors of HUL as a Whole Time Director with effect from
January 2017.

O. P. BHATT INDEPENDENT DIRECTOR

Mr O.P. Bhatt (70) was appointed as an Independent Director on


the Board of Hindustan Unilever Limited in December 2011. He
is a Member of the Audit Committee and Nomination and
Remuneration Committee of the Company. He is the Chairman
of the Stakeholders Relationship Committee and Corporate Social Responsibility Committee
of the Company.

SANJIV MISRA INDEPENDENT DIRECTOR

Dr Sanjiv Misra (73) was appointed as an Independent Director on


the Board of Hindustan Unilever Limited in April, 2013. He is the
Chairman of the Nomination and Remuneration Committee and a
member of the Audit Committee and Corporate Social Responsibility
Committee of the Company.

KALPANA MORPARIA INDEPENDENT DIRECTOR

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Ms Kalpana Morparia (72) was appointed as an Independent
Director on the Board of Hindustan Unilever Limited with
effect from 9th October, 2014. She is Chairperson of the Audit
Committee and a member of the Nomination and
Remuneration Committee and Corporate Social Responsibility
Committee of the Company.

LEO PURI INDEPENDENT DIRECTOR

Mr Leo Puri (60) has been appointed as an Independent


Director on the Board of Hindustan Unilever Limited
effective from October 12, 2018. He is a member of the
Corporate Social Responsibility Committee and Stakeholders
Relationship Committee of the Company.

ASHISH GUPTA INDEPENDENT DIRECTOR

Dr Ashish Gupta (54) was appointed as an Independent


Director on the Board of Hindustan Unilever Limited with
effect from 31st January, 2020. He is also a member of the
Audit Committee of the Company.

ANURADHA RAZDAN EXECUTIVE DIRECTOR, HUMAN RESOURCES

Ms Anuradha Raz dan is a member of the Management


Committee of Hindustan Unilever Limited as Executive
Director, Human Resources and Vice President HR,
Unilever South Asia.

Food Brands
HUL is one of India’s leading food companies. Our passion for understanding what people
want and need from their food - and what they love about it - makes our brands a popular
choice

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Brooke Bond 3 Roses
Playful banter, a little mischief, serious conversation… there’s no time for
young couples like the time spent sharing a cup of 3 Roses.

To keep a relationship going, every young couple needs a little time to


talk.
The perfect colour, strength and aroma of 3 Roses creates that perfect tea moment where
couples can spend time talking about the everyday issues that matter to them.

Whether it is playful banter, a little mischief or serious conversation, in the final reckoning,
it’s these little moments and conversations that make relationships stronger.

Available in 3 Packs: 3 Roses Regular, 3 Roses Natural Care, 3 Roses


Mind Sharp

Annapurna
Partnering with the mom in nurturing her dreams, Annapurna Atta is aimed
at helping her provide wholesome tasty nutrition to her family.

Annapurna Atta is aimed at helping the homemaker provide wholesome, tasty nutrition
to her family.  
Launched nationally in 1998, Annapurna Atta is aimed at helping the homemaker provide
wholesome, tasty nutrition to her family.
Annapurna was awarded the prestigious ‘Awaaz Consumer Award” for the most preferred
brand of atta for two successive years in 2006 and 2007
Available in 2 Packs: Annapurna Atta, Anna Pack 3

Red Label
India’s favourite cup of tea, the great taste of Red Label brings people
closer together and strengthens relationships.

The brew that bonds.


The taste of Red Label brings alive the little moments that bring us closer to people we love.
It is the simple act of sharing a cup of Red Label that often adds magic to everyday moments,
strengthening the relationships that matter most to us.

Life is lived in those moments, one sip at a time.

Available in 2 packs: Red Label, Red Label Natural Care.

Brooke Bond Taaza


Brooke Bond Taaza lifts me and unshackles my mind, allowing me to see
and realize possibilities.

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The great refreshment of Taaza inspires women to have an identity beyond their homes
and to refresh their lives.
Many young women in emerging India live life bound within their roles as a mother, wife
and daughter in law. In the process, they lose their own identity. However, a changing India
and examples of women achievers as portrayed by media, is leading to an awakening of her
desire to carve out an identity for herself. She is however limited by her own inhibitions and a
sense of inertia.

Available in 2 Packs: Taaza, Taaza Thanda

Taj Mahal
Brooke Bond Taj Mahal is an exclusive selection of teas for the discerning
consumer.

A taste for the finer things in life.


Crafted from carefully selected tender leaves from India’s finest tea gardens, the lingering
aroma of Taj Mahal always has an impact. When a cup of Taj is served, compliments follow.

Taj Mahal is not just a cup of tea; it is a sensory experience.

Available in 3 Packs: Taj Mahal, Taj Mahal Tea Bags, Taj Mahal Flavoured Tea Bags

Kissan
With Kissan, good food is loved not shoved!

Kissan acts as a catalyst, easing stressful moments at the dining table.


With Kissan, good food is loved not shoved!
Kissan wants to be the brand which will help dissolve tension between
mother and the family during informal good food moments.

Variants Available: Kissan Jam, Kissan Juice, Kissan Tomato Ketchup, Kissan Tomato
Ketchup, Kissan Jam Squeeze Green Apple, Kissan Jam Squeeze Mango, Kissan Jam
Squeeze Pineapple, Kissan Jam Squeeze Strawberry.

Knorr
Knorr helps families make meal times special, nutritious, tasty and healthy.

Knorr helps families make meal times special, nutritious, tasty and
healthy.

It is not wrong to say that the category of soups was launched by Knorr in India. The Knorr
range of soups is available in a number of tasty and exciting varieties. There is a flavour to
literally suit every taste palate; the Classic range of soups with flavours like Thick Tomato,
Mixed Vegetable and Chicken Delite, the Oriental range with flavours like Sweet Corn
Vegetable, Sweet Corn Chicken and Hot n Sour and the Snacky range (pasta /noodles in
soup) with innovative flavours like Masala Twisty Pasta soup and Thai Curry Noodle soup.

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This year has also seen the addition of the Indian soup range with lip smacking flavours
inspired by Indian cuisine; these include soups like Tomato Chatpata, Corn Mast Masala,
Veg Hara Bhara, etc.
Range Available: Classic Thick Tomato Soup, Sweet Corn Veg Soup, Hot n Sour Veg soup
 Tomato Twisty Pasta Soup, Tomato Chatpata Soup, Chinese Manchurian, Paneer Butter
Masala,  
Punjabi Chana Masala
Home Care Brands
HUL has a diverse portfolio of brands offering home care solutions for millions of consumers
across India.

Active Wheel
Active Wheel de "Mehnat se Aazadi" Freedom from painful & tiring
laundry.

Active Wheel enables consumers to perform laundry chores, giving


“Great Clean” within less effort.
Range Available: Active Wheel Easy Wash (Blue), Active Wheel Easy Wash – Green,
Active Wheel – Gold

Cif
Cif- the best cleaner to let you shine.

Cif- The World’s leading cream cleaner which gives you the power to
deal with the toughest dirt is now in India.
You can use Cif on all types of surfaces- Kitchen tiles, gas stove, kitchen platform, floor,
mirror, fridge, taps, bath tub and furniture.

Range Available: Cif Pack Blue, Cif Pack Yellow

Comfort
The world’s largest fabric conditioner brand.

For most homemakers, ensuring their family's well-being is of utmost


importance. Every task, whether it’s preparing a meal or washing the
clothes, is an expression of her love and affection for the family.
Range Available: Comfort Lilly Fresh, Comfort Blue

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Domex
The sheer power of Domex bleach gives you the confidence you need, eradicating all known
germs.

The sheer power of Domex bleach gives you the confidence you need, eradicating all
known germs. With Domex, you can be absolutely certain that the job is done.

Range Available: Domex Toilet Cleaner – Blue, Domex Toilet Cleaner - Pine Blast, Domex
Toilet Cleaner – Lemon Explosion, Domex Toilet Cleaner – Pink Power, Domex Disinfectant
Floor Cleaner, Domex Phenolic, Domex Atlantic Toilet Block, Domex Citrus Toilet Block,

Sunlight
Sunlight is a colour care brand

A dash of pink, a splash of yellow, a hint of purple and a bit of orange.


Colours can liven up any wardrobe and can  make  you  look  and feel
precious and  if  there’s  one  detergent  brand that’s committed to colour care, it’s
Sunlight.
Sunlight keeps your clothes sparkling clean besides keeping the colours bright for long and
preventing any colour loss. That’s why its patrons haveelevated it to the status of the No. 1
brand in the states it is present in, Bengal and Kerala.

Surf Excel
Giving your kids the freedom to get dirty and experience life, safe in the
knowledge that Surf Excel will remove those stains.

When children go out to play and get dirty, they don't just collect
stains. They experience life, make friends, share with each other and learn from each
other. This helps them get stronger and get ready for the world outside.
Surf Excel quick wash is powered with a path-breaking technology- it reduces water
consumption and time taken for rinsing by 50%. It is a significant benefit, given the acute
water scarcity in most of India.
Range Available: Surf Excel Quick Wash Detergent Powder, Surf Excel Blue Detergent
Powder, Surf Excel Detergent Bar, Surf Excel Gentle Wash, Surf Excel Matic Top Load, Surf
Excel Quick Wash Detergent Powder
Personal Care Brands
Our personal care brands, including Axe, Dove, Lux, Pond's, Rexona and Sun silk, are
recognised and love by consumers across India. They help consumers to look good and feel
good – and in turn get more out of life.

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Aviance
Aviance enables women actualize their unique potential through expert customized beauty
solutions.

The Aviance promise


Aviance believes that no two women are alike. A truly beautiful woman is constantly
searching for ways to express and celebrate her own individuality. Aviance was created to
empower this woman. Encourage her. And help her become all she can be.

Clinic Plus
Clinic Plus is India’s largest selling shampoo and has won the trust the
millions of families across India.

Clinic Plus understands that healthy hair is an important asset which


helps your family progress in life and empowers you.
For over 20 years, for most Indians, a shampoo means Clinic Plus. Over this period of time
the brand has constantly evolved to meet the hair care needs of millions.
Clinic Plus appeals the most to mothers and daughters who are most concerned about the
health of their hair.
Clinic plus offers 3 types of shampoos:
Clinic Plus Clean and Thick Shampoo
Clinic Plus Anti-Dandruff Shampoo
Clinic Plus Naturals Shampoo

Closeup
Freshness that brings you Closer

Closeup is synonymous with ‘Freshness’ that gives you the confidence


to be close to someone.
Closeup, since its launch, has been synonymous with ‘Freshness’ that gives you the
confidence to have close physical proximity with someone.

Dove
Dove stands for real beauty. All around the world, Dove is making real
women feel more beautiful!

Since 1993, Indian women have relied on Dove for beautiful skin. Dove
is known to be a keeper of promises and has given real products to
women world over. To help you enjoy your own brand of beauty, Dove provides a wide
range of personal care, hair care, skin care and deodorants. So choose a new way of
pampering your skin, everyday, with Dove.
Dove Bar and Skin Cleansing

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Dove Hair care range
Dove Anti-perspirant Deodorants
Dove Lotions and Creams

Lux
Lux believes in passion for beauty. It continues to be a favourite with
generations of users for a sensuous experience of luxury.
Lux stands for the promise of beauty and glamour as one of India's
most trusted personal care brands.

Pond’s
Get the expert to look after your skin
Pond’s, has been listening to women’s needs and desires for 150 years
and this has enabled us to deliver new products customised to their
needs. Ponds accompanies them on their journey to enhance the beauty of their skin.

COMPETITORS OF HUL

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Colgate is promoted by Colgate-Palmolive USA, which has a 51 per

cent stake in the Indian subsidiary The Company’s flagship product,

Colgate Dental Cream, is the largest selling toothpaste in India with

an estimated market share of over 30 per cent in 2010. The company

has over 45 per cent share in the Rs21 billion oral care markets.

P&G Hygiene and Healthcare (PGHH) is a 69 per cent subsidiary of

the FMCG major P&G, USA. The company dominates both hygiene and healthcare segments

backed by strong brands, Vicks in the anti- cold segment and Whisper in the feminine care

segment (40 per cent market share). The company’s

parent has two other 100 per cent subsidiaries in India

which have well-known brands in the shampoos

(Head & Shoulders, Pantene, Rejoice) and detergents

space (Ariel, Tide).

Marico is a leading Indian group in consumer products and services in the

beauty and wellness space. It has products and services in haircare,

skincare and health foods. Marico’s brands and their extensions occupy

leadership positions with significant market share in all categories.

Nirma sells over 8, 00,000 tons of detergent products every year


and commands a 35 per cent share of the Indian detergent
market, making it one of the world’s biggest detergent brands.
The brand promotion efforts are complemented by Nirma’s
distribution reach and market penetration through a country-wide
network of 400 distributors and over 2 million retail outlets,
making Nirma products available from the smallest rural village to the largest metro.

Gillette India is the 52 per cent subsidiary of the US shaving Major Gillette
USA. The company came back into the black in 2003 after a spate of
restructuring in 2001 and 2002. Gillette hived off its battery manufacturing

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plant (Duracell) at Manesar and also saw cash infusion from the parent, which helped it
restructure and pay of all its debt. It is now a focused shaving product major, which also
markets the Duracell range of batteries.

ITC is not a pure-play FMCG company, since cigarettes


are its primary business. It is diversifying into non-
tobacco FMCG segments like food, personal care, paper
products, hotels and agribusiness to reduce its exposure to
cigarettes.

Britannia Industries Limited is an Indian company based in Kolkata and


famous for its Britannia and Tiger brands of biscuits, which are highly
recognized throughout the country. Britannia is India’s largest biscuit
firm, with an estimated 38 per cent market share.

Nestles relationship with India dates back to 1912, when it began


trading as The Nestle Anglo-Swiss Condensed Milk Company
(Export) Limited, importing and selling finished products in the
Indian market.

Godrej Consumer Products Limited (GCPL) is amongst the well-known mid-cap companies
in the Indian FMCG space with a presence in the personal care, haircare
and fabric care categories and top-of-the-mind brands such as Cinthol,
Fair glow, Godrej No. 1 (soaps), and Ezee liquid detergent, to name a
few.

Dabur India Limited has marked its presence with some very
significant achievements and today commands market leadership.
Its story of success is based on dedication to nature, corporate and
process hygiene, dynamic leadership and commitment to partners
and stakeholders.

Cavin Kare Private Limited offers beauty products, including


hair, skin and personal care products; food products; and home

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essentials. The company also offers packaging solutions to confectionery, cosmetics,
detergent, soap, pharma, pest control/insecticide, food, and beverage industries. In addition, it
operates salons offering personal styling and beauty solutions and spa treatments to men,
women and children.

Johnson & Johnson Consumer Products Division is one of the leading FMCG manufacturers

in India. It is also among the most consistent and successful

enterprises not just in the J&J worldwide group of

companies, but also in India. Johnson & Johnson Consumer

Products Division has been growing steadily over the last

few years, and is one of the few companies in the Indian

market to grow at extremely healthy levels.

MARKET SHARE OF THE COMPANY AS COMPARED TO ITS


COMPETITORS

MARKET
LAST SALES NET TOTAL
COMPANY CAP.
PRICE TURNOVER PROFIT ASSETS
(RS. CR.)

HIND.
2,449.60 575,558.03 45,996.00 7,954.00 51,289.00
UNILEVER

ASIAN PAINTS 3,010.45 288,762.36 18,516.86 3,052.51 12,750.04

ITC 201.40 247,899.23 46,807.34 15,136.05 64,595.43

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TITAN
1,720.40 152,737.11 20,602.00 877.00 12,939.00
COMPANY

DABUR INDIA 595.20 105,225.40 6,309.80 1,170.35 4,784.23

GODREJ
965.50 98,722.38 5,474.45 1,179.89 5,519.60
CONSUMER

BERGER
844.25 82,002.00 5,691.69 699.05 3,098.47
PAINTS

MARICO 531.85 68,683.11 5,853.00 1,006.00 3,731.00

UNITED
655.15 47,606.48 28,589.20 704.70 6,086.20
SPIRITS

COLGATE-
1,724.60 46,909.12 4,841.22 1,035.39 1,289.88
PALMOLIV

P & G HYGIENE 13,135.90 42,639.13 3,001.99 433.08 1,233.35

UNITED
1,431.35 37,844.89 10,183.40 112.85 3,854.28
BREWERIES

KANSAI
602.40 32,463.34 4,690.00 530.99 4,153.62
NEROLAC

WHIRLPOOL
2,230.55 28,298.99 7,266.48 476.29 2,775.98
INDIA

DIXON
4,579.60 26,813.56 3,671.50 110.60 677.73
TECHNOLOG.

EMAMI 565.60 25,140.92 2,389.92 289.12 2,011.79

GILLETTE
5,616.05 18,302.71 1,679.06 230.18 972.83
INDIA

RAJESH
580.60 17,145.12 46,899.11 403.22 5,904.61
EXPORTS

KAJARIA
995.90 15,854.73 2,571.80 278.80 1,816.00
CERAMICS

VAIBHAV
815.35 13,306.51 415.89 46.83 589.70
GLOBAL

DISTRIBUTION STRATEGY OF HINDUSTAN UNILEVER LIMITED

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HUL distribution system is the best amongst FMCG companies.
At present, HUL's products, manufactured across the country, are distributed through a
network of about 7,000 redistribution stockists covering about one million retail outlets.
Extending availability Data on rural consumer buying behaviour indicates that the rural
retailer influences 35% of purchase occasions. Therefore, sheer product availability can
determine brand choice, volumes and market share.
HUL used the principle of project stream line. The principle of Project Streamline is to
leverage our scale and organizational synergy to increase reach in rural markets.

The pivot of Streamline is the Rural Distributor (RD), who has15-20 rural sub-stockiest
attached to him. Each of these sub-stockiest is located in a rural market. The sub-stockiest
then performs the role of driving distribution. Project Streamline was conceptualized to
significantly enhance control on the rural supply chain through a network of rural sub-
stockiest, who are based in these very villages.

As part of the project, higher quality servicing, in terms of frequency, credit and full-line
availability, would be provided to rural trade. Thereby, giving us a substantial competitive
edge over the next decade. The role performed by the Redistribution Stockiest has also
undergone changes over the years.

Financing stocks, providing manpower, providing service to retailers, implementing


promotional activities, extending indirect coverage, reporting sales and stock data, screening
for transit damages are some of the functions performed by the RS today.
The RS was required to provide the distribution units to the company salesman. The RS
financed his stocks and provided warehousing facilities to store them. The RS also undertook
demand stimulation activities on behalf of the company.

The RS would be able to provide customer service only if he was serviced well. This
knowledge led to the establishment of the "Company Depots" system. This system helped in
transhipment, bulk breaking, and as a stock point to minimize stock-outs at the RS level.

In the recent past, a significant change has been the replacement of the Company Depot by a
system of third party Carrying and Forwarding Agents (C&FAs). The C&FAs act as buffer
stock-points to ensure that stock-outs did not take place. The C&FA system has also resulted
in cost savings in terms of direct transportation and reduced time lag in delivery. The most
important benefit has been improved customer service to the RS.

Certain C&FAs were selected across the country to act as mother depots. Each of them has a
minimum number of JIT depots attached for stock requirements. All brands and packs
required for the set of markets which the MD and JITs service in a given area are sent to the
mother depot by all manufacturing units. The JITs draw their requirements from the MD on a
weekly or bi-weekly basis.

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BRAND AMBASSADORS

Lakme launches Kareena Kapoor Khan collection

At the recently concluded Lakme Fashion Week, Hindustan Unilever Limited’s premier
beauty brand Lakme launched a new range of colour cosmetics co-created with leading
actress and Lakme brand ambassador Kareena Kapoor Khan.

The new range of premium makeup products called, ‘Kareena Kapoor Khan by Lakme
Absolute’ is the first makeup line launched by the actress. This new line of makeup
introduces new format products such as cheek contours, face contours and pout definers
alongside lip colour, eyeliner, mascara and brow definer.

Kareena Kapoor Khan, Brand Ambassador, Lakme said, “I have been the face of Lakme for
so many years now and my love for the brand has only grown. My love for makeup is well-

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known and today unveiling my first collection of makeup with them is almost an emotional
experience for me. The range includes the shades I love, the textures I love and I am super
excited to introduce new formats and products that I am sure every woman out there is going
to love!

Hindustan Unilever ropes in Akshay Kumar for Horlicks


Hindustan Unilever Limited has roped in Bollywood actor Akshay Kumar as the brand
ambassador of its malted beverage brand Horlicks. The company, which completed its
acquisition of GSK Consumer in April this year, said Akshay Kumar will represent the core
values of the brand and encourage urban Indian adults to fight protein deficiency every day.

Shah Rukh Khan: The brand ambassador for Pepsodent


Hindustan Unilever has roped Shah Rukh Khan as the brand ambassador for its Pepsodent
toothpaste. The campaign is called as “Papa & Pappu” that would encourage fathers to spend
quality time with their children and make brushing more fun. The campaign revolves around
two characters, Papa (played by Shahrukh Khan) and Pappu (played by child actor Keval), a
father and son duo who make brushing enjoyable and exciting.

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Hul's Knorr unveils Kajol as brand ambassador

Hindustan Unilever has unveiled actress Kajol (pictured) as the face for its packaged soup
brand, Knorr. Kajol will now appear in all the brand communication for the soup brand. The
campaign aims to emphasize Knorr soup as a healthy, tasty alternative that is light, filling,
nutritious and easy-to-make. Speaking about the new campaign, Hindustan Unilever’s
Sidharth Singh, category head, Foods, said “The big strategic thrust for Knorr in this relaunch
is to find a role for soups in the daily Indian menu. Therefore, the aim for Knorr is to leverage
the vacant spot between 5 - 8 pm as the perfect pre-dinner snack."

SALES PROMOTION OF HINDUSTAN UNILEVER LIMITED

Hindustan Unilever is a very large company with lots of brands and products so its
promotional policies are varied and extensive. It has taken the help of advertisements to
create consciousness about its products. Sharing product knowledge through the print media
like periodicals and various newspapers is also a good promotional strategy.

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 Sometimes coupons are attached with local newspapers to advertise and promote the
products. Hindustan Unilever has utilized the electronic media for its promotions as the ads
are on television at regular intervals. It has also posted detailed information about its products
along with advertisements on the websites to maintain consumer awareness. Hindustan
Unilever has maintained attractive product appearances with detailed and complete
information about the product on its packaging in at least three languages.

Discounts are provided along with various schemes to attract the customers during off
seasons and during special occasions.  Sales push is also possible through various contests,
free samples, and lowered prices of introductory products and endorsement of products
by celebrities. Sakshi Talwar is associated with Vim, Yami Gautam in Kwality Walls, Actor
Kareena Kapoor is associated with Lakme, Actor Kajol is associated with Knorr soups, and
Varun Dhawan in Ponds men’s range and Anoushka Sharma is associated with Bru. In order
to arouse the interest of the consumers various staff are hired who provide a live product
demonstration through the stalls at particular public places.

CSR ACTIVITIES
GREENING BARRIERS:

Water Conservation and Harvesting

(Linked to product Pure-it)


HUL’s Water Conservation and Harvesting project has two major objectives:

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10. to reduce water consumption in its own operations and regenerate sub-soil water
tables at its
own sites through the principles of 5R – Reduce, Reuse, Recycle, Recover and Renew;
b. help adjacent villages to implement appropriate models of watershed
development.

SHAKTI – Changing Lives in Rural India

Shakti is HUL’s rural initiative, which targets small villages with population of less than
2000
people or less. It seeks to empower underprivileged rural women by providing income-
generating opportunities, health and hygiene education through the Shakti Vani programme,
and creating access to relevant information through the iShakti community portal.

In general, rural women in India are underprivileged and need a sustainable source of income.
NGOs, governmental bodies and other institutions have been working to improve the status
of
rural women. Shakti is a pioneering effort in creating livelihoods for rural women, organised
in
Self-Help Groups (SHGs), and improving living standards in rural India. Shakti provides
critically
needed additional income to these women and their families, by equipping and training them
to
become an extended arm of the company’s operation.

HEALTH & HYGIENE EDUCATION

Lifebuoy Swastya Chetna (LBSC) is a rural health and hygiene initiative which was started in
2002. LBSC was initiated in media dark villages (in UP, MP, Bihar, West Bengal,
Maharashtra,
Orissa) with the objective of spreading awareness about the importance of washing hands
with
soap.

The need for a program of this nature arose from the fact that diarrhoeal diseases are a major
cause of death in the world today. It is estimated that diarrhoea claims the life of a child every
10 seconds and one third of these deaths are in India. According to a study done by the
London
School of Hygiene and Tropical Medicine, the simple practice of washing hands with soap
and
water can reduce diarrhoea by as much as 47%. However, ignorance of such basic hygiene
practices leads to high mortality rates in rural India

ECONOMIC EMPOWERMENT OF WOMEN

The Fair & Lovely Foundation is HUL’s initiative which aims at economic empowerment of
women across India. It aims to achieve this through providing information, resources, inputs
and
support in the areas of education, career and enterprise. It specifically targets women from
low-

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income groups in rural as well as urban India. Fair & Lovely, as a brand, stands on the
economic empowerment platform and the Foundation is an extension of this promise. The
Foundation has renowned Indian women, from various walks of life, as its advisors. Among
them are educationists, NGO activists, physicians. The Foundation is implementing its
activities
in association with state governments.

SPECIAL EDUCATION & REHABILITATION

Under the Happy Homes initiative, HUL supports special education and rehabilitation of
children
with challenges.

Asha Daan:
The initiative began in 1976, when HUL supported Mother Teresa and the Missionaries of
Charity to set up Asha Daan, a home in Mumbai for abandoned, challenged children, and the
destitute.

Ankur:
In 1993, HUL’s Doom Dooma Plantation Division set up Ankur, a centre for special
education of
challenged children. The centre takes care of children with challenges, aged between 5 and 15
years. Ankur provides educational, vocational and recreational activities to over 35 children
with
a range of challenges, including sight or hearing impairment, polio related disabilities,
cerebral
palsy and severe learning difficulties.

Kappa gam:
Encouraged by Ankur’s success, Kappagam (“shelter”), the second centre for special
education
of challenged children, was set up in 1998 on HUL Plantations in South India. It has 17
children.
The focus of Kappagam is the same as that of Ankur.

Anbagam:
Yet another day care centre, Anbagam (“shelter of love”), has been started in 2003 also in the
South India Plantations. It takes care of 11 children. Besides medical care and meals, they too
are being taught skills such that they can become self-reliant and elementary studies.

RECOMMENDATIONS

 HUL's risk aversion and market myopia led to stagnation of business, and ferocity of
competition forced it into a defensive mode. Lack of pricing power in core business
and absence of growth drivers have put HUL on a deflationary mode.

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 So according to us, HUL needs to foresee the market in a more efficient way that it is
following till yet. Since the market situations has changed, the company (HUL) which
was once the market leader and had aggressive market policies is now defending itself
among the competitors like ITC, Dabur, Marico, Cadbury etc.

 The competitors cover all the product line of HUL, so the market strategy has to be
efficient to regain the market strength. Plus, point with HUL here is, it has long faith
of consumers in India since it is the oldest among the contenders.

 In case of risk-taking ability, HUL has been a risk averter. Been such a big
organisation, with such good experts in its management, it can formulate new policies
and start facing risks rather than averting it. Yes, the competition is furious but risk
aversion is not the way which will lead to be the market leader. Pricing policy can be
done accordingly to ensure profit margin.

 At HUL, the investment in advertisements have increased which is said to be showing


positive changes in the turnover of the company.

CONCLUSION

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Hindustan Unilever ltd. Is a leading FMCG company in India and from last three consecutive
years has shown accelerated growth in FMCG portfolio. Customers in India are also spending
more in FMCG as their standard of living is growing. HUL has placed itself successfully in
the position of market leader in FMCG products. Though there was some downfall in sales
and profit of the company but after that HUL has shown considerable rise in both sales and
profit. The future of the company is also looking bright as FMCG market in India is still
expanding and so we can safely conclude that HUL will be able to secure its number one
position in FMCG product.

HUL has also started project SHAKTI that has provided it direct reach to rural market. This
may be considered a revolutionary step since the urban market is reaching its saturation level
and there is a huge scope exploring rural market. This will also be helpful not only increasing
its market share but also fight competition.

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