HINDUSTAN UNILVR- TRANSFORMING A BRAND INTO A

SOCIALLY RSPONSIBL LADR.

CAS STUDY
HINDUSTAN UNILVR- TRANSFORMING A BRAND INTO A
SOCIALLY RSPONSIBL LADR.

6/30/2015
Amity Intrnational Businss School
Aditya Agarwal
A1802014167
Faculty Guid- Dr. Kokil Jain
Industry Guid- Mr. Shashank Shkhar

[Type text]

XCUTIV SUMMARY

Th main objctiv is to find hr, what ar th stps; Hindustan Unilvr Ltd is adapting to b a
markt ladr and to diffrntiat it from th comptition. What ar th stps company is
utilizing to find currnt ongoing trnd in th markt. To study various brands of HUL. In ordr to
invstigat th comptitiv brands in th markt of hom car, food stamps, and prsonal car
products. To find th part of HUL brands and markt compting brands. Th main aras of
strngth and waknss for HUL brands. To dvlop a funding plan for th communication of th
brand of HUL. What ar HUL markting stratgis?
Unilvr is on of th oldst FMCG multinational companis in th world. Its origin dats back
to th 19th cntury whn a group of companis, soap and margarin producd indpndntly. In
1930, in 1940 th company joind to form Unilvr divrsifid into food products in th nxt
fiv dcads, has dvlopd itslf as on of th lading fast moving consumr goods (FMCG)
multinational opration in svral companis. In 2004, th Unilvr 2010 vital arrangmnt was
put without hsitation with th mission to bring vitality to lif' and 'to addrss rgular issus for
sustnanc, clanlinss and individual considration with brands that hlp individuals fl grat,
look grat and gt all th mor out of lif'. "Th company's stratgy is to focus on its cor
businss of food, hom car and prsonal car. Unilvr has a turnovr of 39.6 billion. Th nt
profit of 3685000000 in 2006 and drivs 41 prcnt of its sals in mrging markts and th
ntir dvloping world in ovr 100 countris, has 179,000 mploys and is a culturally divrs
organization with its top managmnt from 24 nations. Intrnationalization will b basd on th
local roots for th purpos of a gnral principl of "multi-local multinational '.

INTRODUCTION

Hindustan Unilvr Limitd (HUL) is on of th largst fast moving consumr goods company
in India with a hritag of ovr 75 yars in India and touchd th livs of two of th thr
Indians.
HUL is working to hlp crat a bttr futur vry day and mak popl fl good, look good
and of lif with brands and srvics that ar good for thm and good for othrs.
With mor than 35 brands covring 20 diffrnt catgoris such as soaps, dtrgnts, shampoos,
skin car, toothpasts, dodorants, cosmtics, ta, coff, packagd food, ic and clan watr, th

Aditya Agarwal A1802014167

company is a part of vryday lif for millions of consumrs across India , Its portfolio includs
lading brands such as Lux houshold, lifblts, Surf xcl, Rin, Whl, Fair & Lovly, Pond,
Vaslin, Lakm, Dov, Sunsilk Clinic Plus Ppsodnt, Clos-up, ax, Brook Bond, Bru, Knorr,
Kissan, Kwality Wall Pur and thr.
Th company mploys mor than 16,000 mploys and an annual turnovr of mor than Rs.19,
401 crors (2010-2011). HUL is a subsidiary of Unilvr, a lading supplir of consumr goods
with strong local roots in mor than 100 countris around th world with an annual turnovr of
44 billion in 2011. Unilvr has around 52% participation of HUL.
To join th mor than 100 yars with India. In th summr of 1888 visitors of th port of
Kolkata, noticd boxs of soap with th words "Mad in ngland by Lvr Brothrs." With it, an
ra of brand markting bgan. Fast Moving Consumr Goods (FMCG).

Shortly aftrwards, in 1895 lifblts othr famous brands lik Pars, Lux and Vim. Vanaspati
was launchd in 1918 and th famous brand Dalda cam on th markt in th yar 1937th.

Unilvr foundd in 1931 its first Indian subsidiary Hindustan Vanaspati Manufacturing
Company, followd by Lvr Brothrs India Limitd (1933) and Unitd Tradrs Limitd
(1935). Ths thr companis mrgd in Novmbr 1956 to HUL 10% stak in th Indian
public, th first among th forign subsidiaris, offrd to form to do so. Unilvr now holds
51.55% stak in th company. Th rmaining shars ar distributd among approximatly
380,000 individual sharholdrs and financial institutions.
Th libralization of th Indian conomy, in 1991 bgan, was a landmark and much HUL Group
growth. Rmoving th lgal framwork should xplor th company, all sgmnts of th uniqu
products and th opportunity without rstrictions on capacity.
At th sam tim, drgulation of alliancs, mrgrs and acquisitions allowd. In on of th most
visibl and talkd about vnts in th history of th company in India, formr Tata Oil Mills
Company (Tomco) mrgd in 1995; HUL and Tata formd anothr company, with HUL 1 April
1993. Lakm Limitd a 50 -50 joint vntur, Lakm Lvr Limitd, th markt ladr in th
markt for Lakm cosmtics and othr rlatd products of th two companis. Thn in 1998
Lakm Limitd sold its brands and HUL Lakm Limitd sold its 50% stak in th joint vntur
for th company.
HUL has a 50:50 joint vntur with Kimbrly Clark Corporation formd in th Unitd Stats in
1994, Kimbrly-Clark Lvr Ltd, th Huggis and Kotx sanitary napkins marktd. HUL has
also st up a subsidiary in Npal, Npal Lvr Limitd (NLL), and th work of this subsidiary is
th largst invstmnt in production in th Himalayan kingdom. Th work of th NLL HUL is
Aditya Agarwal A1802014167

that it manufacturs products such as soaps, dtrgnts and prsonal car products for both th
domstic markt and xports to India.
HUL is on of th largst FMCG Company in India with sals figur of Rs.12,295 crors and nt
profit of 1855 cror in 2006. Howvr for th financial yar 2014-2015 th Profit aftr tax (PAT)
was approximatly Rs. 3843 crors and th Nt profit was approximatly Rs. 4315 crors. Thr
ar almost 15,000 mploys, of whom mor than 1,300 xcutivs. This corporat stratgy is to
HUL to focus on its main vision and its cor objctivs. Ths jobs ar in th hom, prsonal
car and food sctor. Thr ar almost 20 diffrnt catgoris of consumrs in both sctors of
companis. For xampl, hom and prsonal car of prsonal hygin, laundry, skin car, hair,
oral car, dodorants, color cosmtics and prsonal and Ayurvdic halth car, whil food
companis hav ta, coff, ic cram and procssd foods brand. Apart from th two product
aras, thr ar sparat dpartmnts for spcializd xports and nw businsss opportunitis.
Stat th stratgy of Hindustan Unilivr.
Th purpos HUL was to fulfill th attntion to lif in th aras of prsonal and houshold
car and bring th daily nds of customrs. In addition it aimd to crat awarnss among
popl about nutrition and hygin rlatd. To tak advantag of markt opportunitis in
untappd rural aras and food procssing, movs th lvl of HUL businss stratgy, dcisionmaking powrs of th dcision of th subsidiary Sat .HUL focusd stratgy was in crating
powr and crat .On brands margins HUL stratgy is th dirct .For rural aras startd HUL
stramlin projct 1997.HUL followd th stablishmnt of thir transition distribution channls
.You stratgy in two sctors rstructurd his hart Industry: food, houshold and prsonal
rsourcs .it on improving xisting products alrady in an attmpt markt.HUL chang in thir
work managmnt supply structur of catgoris, th rduction stp focusd managmnt of jobs
and th dvlopmnt of a dpr lvl of comptnc .Apart this, HUL also som .Ths
stratgis ar to start in th hardwar stor brands pionring, innovativ brands whn piplin is
full .Also sh said bliv in long-trm stratgis and th provision of sustainabl prformanc.
Thr ar no larg companis of consumr products on th markt; you will find th dfinition of
th stratgis usd is th mthodology of th survy and intrviw mthod.

Data Collction Mthod:

For this study both th primary data and scondary data wr collctd.
Primary data wr collctd mostly through prsonal contacts. To this nd, both th
qustionnair and on-on-on intrviw with consumrs, shopkprs and tradrs and supplirs
of th company was conductd.
Scondary data collctd journals, magazins, nwspaprs, company litratur and wbsits.
Aditya Agarwal A1802014167

Data analysis:
Analyzing cods to ach qustion wr awardd. Thraftr which was writtn and thn
analyzd. And rspons to ach qustion was rcordd in an xcl sht to giv th various plots
and figurs.
MAJOR FINDINGS
Major comptitors
1. Dabur
2. Jhandu
3. Johnson &Johnson
4. Cavin Car
5. Proctr & Gambl
6. Britannia
7. ITC
8. Gilltt

SAMPLING TCHNIQU
For my survy I usd Clustr Sampling tchniqu. I slctd a sampl of 100 popl around th
ara and intrviwd thm according to th qustionnair. In th invstigation, I trid to find out
thir prfrncs and tasts, buying habits, brand ar tru or thy considr thir advic from
frinds or a rfrnc group for th purchas. I also trid to find out wr thy satisfid with th
quality or th currnt status of th product that thy want a chang in th xisting product or thy
want to continu using th standard product.
I also intrviwd som of th shopkprs and tradrs and try to figur out what th company
dos to kp thir customrs happy and what nw changs thy mak to thir product in ordr to
gain a comptitiv advantag from comptitors.

Aditya Agarwal A1802014167

RSARCH INSTRUMNT
Rsarch tools wr primary data collction qustionnair. Th qustionnairs wr dvlopd
for consumrs, shopkprs and som supplirs.
Th first st, th nds and prfrncs of customrs and what thy want to know in th product
and also th lvl of knowldg of th various products on th markt.
Scondly, thr is what th company taks stps to provid information on th volution of
prfrncs in tast and clint nds and what th company is doing to kp its markt position
and to rciv but to tak advantag of nw markts.
DATA ANALYSIS
For th analysis of data collctd by th invstigativ work, a sris of masurs that hav bn
followd ar givn in chronological ordr
ach qustion was assignd to th qustionnair (coding)
ach qustionnair was hit so as to form a databas (punchs) in th MS xcl spradsht
In addition, th data with charts, graphs, tabls, tc. wr analyzd.
Finally, attmpts hav bn mad to xtract maningful information from th analyzd data.
Which of th following companis' FMCG products do you prfr to us?
HUL (Hindustan Unilvr Limitd)
ITC (Indian Tobacco Company)
P & G (Proctr & Gambl)
Nstl
Dabur

CONCLUSIO

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In rcnt yars, th consumr sctor has dcrasd du to trad down. Also du to th prsnc
of a larg numbr of companis trying to hav this opportunity, this traditional strngth and
formr HUL for changs and thrfor thir transformation ld to a nw HUL with this challng
succssfully rvrsd this trnd. Thy did this by significantly strngthning thir brands and
thir abilitis. This has alrady startd to provid advantags and growth. Volum growth is
followd by th growth of valu, which in turn brings profit growth.
India is on of th most promising markts that offr grat potntial. Ovr th nxt 10 yars, pr
capita incom in India is xpctd to doubl. In FMCG, thr is a way to catalyz pntration,
incras th us and modrnization of th consumr. Consquntly, th consumr markt is
xpctd to grow mor of thir rspctiv bas Rs.40, 000 crors as Rs.100, 000 sds.
Th nw Hindustan Lvr s an xciting opportunity for growth. You hav 35 brands, all
sgmnts of strong, with lading positions in most. Today, thy ar mor and mor important for
consumrs. Popl ar nthusiastic and dtrmind to tak advantag of th scal of th
opportunity. Th scal of th businss and oprations givs thm th ncssary rsourcs. Thy
provid a good srvic and th changs that thy hav mad in th products manufacturd by th
customr, profitabl and sustainabl growth to gnrat thm.

RCOMMNDATIONS AND SUGGTIONS

Dishwashr and Hair car products nds to focusd on by HUL as w hav sn from
th survys, consumrs ar lss likly to purchas ths products.

HUL nds to targt popl whos incom lvl is lss than Rs. 1,00,000 brackt, as it is
lacking in that sgmnt.

HUL nds to rach out to mor and mor womn, as th survys ar indicating mn ar
dominating th purchas.

Consumrs ar somwhat satisfid, so HUL nds to improv th quality or th valu that

thy ar dlivring to consumrs.

HUL should mix a crtain pinch of modrn tchnology in thir product portfolio as ths
attributd scord last in th survy.

An attmpt should b mad by HUL managmnt to tap all th potntials offrd by th

global markt by dvoting a mor substantial, fficint and bttr quippd rsourc bas.
This task can b accomplishd in th first plac by implmnting a strongr and mor

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nding distribution channl for various products so that vn thos sctions of consumrs
who ar not accssibl so asily, can b covrd with gratr as.

fficint infrastructural bas coupld with bttr and mor comprhnsiv advrtising
stratgis should b rsortd to; though HUL is prsntly surfing ahad of othrs on th
path of taking som grat initiativs it should b mor concrnd about it for th purpos
of corporat imag building.

Th pric structur for various products should b mor within th limit of affordability
for consumrs; th grassroots considration in this rgard should not b ignord. Hr,
th policy of loco-cntric rathr than uniform pric structur would crtainly b mor
advantagous.

HUL should go for mor plannd and snsibl markting and advrtising stratgis with a
viw to accomplishing th task of global brand imag buildings.

Hypr markting and rtailing ntwork should gt spcial attntion as vital componnts
of HULs markting policy.

Aditya Agarwal A1802014167