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1.
INTRODUCTION
ABOUT THE COMPANY
Hindustan Unilever Ltd (HUL) is India's largest Fast Moving
Consumer Goods (FMCG) company. HUL's brands like
Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's,
Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond,
Kissan, Knorr-Annapurna, Kwality Wall's are household
names across the country and span a host of categories,
such as soaps, detergents, personal products, tea, coffee,
branded staples, ice cream and culinary products. These
products are manufactured over 40 factories across India
and the associated operations involve over 2,000 suppliers
and associates. Hindustan Unilever Limited's distribution
network comprises about 4,000 redistribution stockists,
covering 6.3 million retail outlets reaching the entire urban
population, and about 250 million rural consumers. HUL is
also one of India's largest exporters. It has been recognised
as a Golden Super Star Trading House by the Government
of India. Presently, HUL has over 16,000 employees
including over 1,200 managers. Its mission is to "add vitality
to life."
Limited.
category.
competitive brands.
HUL brands.
COMPANY PROFILE
HISTORY
YEAR MILESTONES
1888 Sunlight soap introduced in India.
Lifebuoy soap launched; Lever Brothers appoints
1895
agents in Mumbai, Chennai, Kolkata, and Karachi.
1902 Pears soap introduced in India.
1903 Brooke Bond Red Label tea launched.
1905 Lux flakes introduced.
1913 Vim scouring powder introduced.
1914 Vinolia soap launched in India.
Vanaspati introduced by Dutch margarine
1918 manufacturers like Van den Berghs, Jurgens,
Verschure Creameries, and Hartogs.
1922 Rinso soap powder introduced.
1924 Gibbs dental preparations launched.
Lever Brothers gets full control of North West Soap
1925
Company.
1926 Hartogs registers Dalda Trademark.
Unilever is formed on January 1 through merger of
1930
Lever Brothers and Margarine Unie.
Hindustan Vanaspati Manufacturing Company
1931 registered on November 27; Sewri factory site
bought.
1932 Vanaspati manufacture starts at Sewri.
Application made for setting up soap factory next to
1933 the Vanaspati factory at Sewri; Lever Brothers India
Limited incorporated on October 17.
Soap manufacture begins at Sewri factory in
October; North West Soap Company's Garden Reach
1934
Factory, Kolkata rented and expanded to produce
Lever brands.
1935 United Traders incorporated on May 11 to market
Personal Products.
Mr. Prakash Tandon, one of the first Indian
1937
covenanted managers, joins HVM.
Garden Reach Factory purchased outright;
1939 concentration on building up Dalda Vanaspati as a
brand.
Agencies in Mumbai, Chennai, Kolkata and Karachi
1941
taken over; company acquires own sales force.
Unilever takes firm decision to "train Indians to take
1942 over junior and senior management positions
instead of Europeans".
Personal Products manufacture begins in India at
1943
Garden Reach Factory.
Reorganisation of the three companies with common
1944
management but separate marketing operations.
1947 Pond's Cold Cream launched.
Mr. Prakash Tandon becomes first Indian Director.
1951 Shamnagar, Tiruchy, and Ghaziabad Vanaspati
factories bought.
1955 65% of managers are Indians.
Three companies merge to form Hindustan Unilever
1956
Limited, with 10% Indian equity participation.
Unilever Special Committee approves research
1957
activity by Hindustan Unilever.
1958 Research Unit starts functioning at Mumbai Factory.
1959 Surf launched.
Mr. Prakash Tandon takes over as the first Indian
1961
Chairman; 191 of the 205 managers are Indians.
1962 Formal Exports Department starts.
Head Office building at Backbay Reclamation,
1963
Mumbai, opened.
Etah dairy set up, Anik ghee launched; Animal feeds
1964
plant at Ghaziabad; Sunsilk shampoo launched.
Signal toothpaste launched; Indian shareholding
1965
increases to 14%.
Lever's baby food, more new foods introduced;
Nickel catalyst production begins; Indian
1966
shareholding increases to 15%. Statutory price
control on Vanaspati; Taj Mahal tea launched.
Hindustan Unilever Research Centre, opens in
1967
Mumbai.
Mr. V. G. Rajadhyaksha takes over as Chairman
from Mr. Prakash Tandon; Fine Chemicals Unit
1968
commissioned at Andheri; informal price control on
soap begins.
Rin bar launched; Fine Chemicals Unit starts
1969
production; Bru coffee launched
Mr. V. G. Rajadhyaksha presents plan for
diversification into chemicals to Unilever Special
1971
Committee - plan approved; Clinic shampoo
launched.
Mr. T. Thomas takes over as Chairman from Mr. V.
1973
G. Rajadhyaksha.
Pilot plant for industrial chemicals at Taloja;
1974 informal price control on soaps withdrawn; Liril
marketed.
Ten-year modernisation plan for soaps and
detergent plants; Jammu project work begins;
1975
statutory price control on Vanaspati and baby foods
withdrawn; Close-up toothpaste launched.
Construction work of Haldia chemicals complex
1976
begins; Taloja chemicals unit begins functioning.
Jammu synthetic Detergents plant inaugurated;
1977
Indian shareholding increases to 18.57%.
Indian shareholding increases to 34%; Fair & Lovely
1978
skin cream launched.
Sodium Tripolyphospate plant at Haldia
1979
commissioned.
Dr. A. S. Ganguly takes over as Chairman from Mr.
1980 T. Thomas; Unilever shareholding in the company
comes down to 51%.
1982 Government allows 51% Unilever shareholding.
Foods, Animal Feeds businesses transferred to
1984
Lipton.
Agri-products unit at Hyderabad starts functioning -
first range of hybrid seeds comes out; Khamgaon
1986
Soaps unit and Yavatmal Personal Products unit
start production.
1988 Launch of Lipton Taaza tea.
1990 Mr. S. M. Datta takes over as Chairman from Dr. A.
S. Ganguly.
1991 Surf Ultra detergent launched.
HUL recognised by Government of India as Star
1992
Trading House in Exports.
HUL's largest competitor, Tata Oil Mills Company
(TOMCO), merges with the company with effect
from April 1, 1993, the biggest such in Indian
1993
industry till that time. Merger ultimately
accomplished in December 1994; Launch of Vim
bar; Kissan acquired from the UB Group.
HUL forms Unilever Nepal Limited, HUL and US-
based Kimberley-Clark Corporation form 50:50 joint
venture - Kimberley-Clark Lever Ltd. - to market
1994 Huggies diapers and Kotex feminine care products.
Factory set up at Pune in 1995; HUL acquires
Kwality and Milkfood 100% brandnames and
distribution assets. HUL introduces Wall's.
HUL and Indian cosmetics major, Lakme Ltd., form
50:50 joint venture – Lakme Lever Ltd.; HUL enters
1995
branded staples business with salt; HUL recognised
as Super Star Trading House.
Mr. K. B. Dadiseth takes over as Chairman from Mr.
S. M. Datta; Merger of Group company, Brooke
1996 Bond Lipton India Limited, with HUL, with effect
from January 1; HUL introduces branded atta; Surf
Excel launched.
Unilever sets up International Research Laboratory
1997 in Bangalore; new Regional Innovation Centres also
come up.
Group company, Pond's India Ltd., merges with HUL
with effect from January 1, 1998. HUL acquires
1998
Lakme brand, factories and Lakme Ltd.'s 50%
equity in Lakme Lever Ltd.
Mr. M. S. Banga takes over as Chairman from Mr. K.
B. Dadiseth, who joins the Unilever Board; HUL
2000 acquires 74% stake in Modern Food Industries Ltd.,
the first public sector company to be disinvested by
the Government of India.
HUL enters Ayurvedic health & beauty centre
2002 category with the Ayush range and Ayush Therapy
Centres.
Launch of Hindustan Lever Network; acquisition of
2003
the Amalgam Group
2005 Launch of "Pureit" water purifiers
DISTRIBUTION NETWORK
At the supermarkets
Self-service stores and supermarkets are fast emerging in
metros and large towns. To service modern retailing outlets
in the metros, HUL has set up a full-scale sales organisation,
exclusively for this channel. The business system delivers
excellent customer service, while driving growth for the
company and the store. At the same time, innovative
marketing initiatives are taken to provide consumers with
experience of our brands at the store itself, through product
tests and in-store sampling.
In the villages
HUL has also revamped its sales organisation in the rural
markets to fully meet the emerging needs and increased
purchasing power of the rural population. The company has
brought all markets with populations of below 50,000 under
one rural sales organisation. The team comprises an
exclusive sales force and exclusive redistribution stockists,
under the charge of dedicated managers. The team focuses
on building superior availability, while enabling brand
building in the deepest interiors. HUL's distribution network
in rural India already directly covers about 50,000 villages,
reaching about 250 million consumers, through about 6000
sub-stockists.
Project Shakti, HUL's partnership with Self Help Groups of
rural women, is becoming an extended arm of the company's
operation in rural hinterlands. Started in 2001, Project Shakti
has already been extended to about 50,000 villages in 12
states - Andhra Pradesh, Karnataka, Gujarat, Madhya
Pradesh, Tamil Nadu, Chattisgarh, Uttar Pradesh, Orissa,
Punjab, Rajasthan, Maharashtra and West Bengal. The
respective state governments and several NGOs are actively
involved in the initiative. The SHGs have chosen to partner
with HUL as a business venture, armed with training from
HUL and support from government agencies concerned and
NGOs.
Hindustan Unilever Network (HUN) is the company's arm in
the Direct Selling channel, one of the fastest growing in India
today. It already has about 3.5 lakh consultants - all
independent entrepreneurs, trained and guided by HLN's
expert managers. HLN has already spread to over 1500
towns and cities, covering 80% of the urban population,
backed by 42 offices and 240 service centres across the
country. It presents a range of customised offerings in Home
& Personal Care and Foods.
MARKET PRESENCE:-
SWOT ANALYSIS:-
Strengths
HLL enjoys a formidable distribution network covering over
3400 distributors and 16 million outlets. This helps them
maintain heavy volumes, and hence, fill the shelves of most
outlets. The new sales organization named 'One HLL' brings
"Household and Personal Care" and foods distribution
networks together, thereby aligning all the units towards the
common goal of achieving success. HLL has been
continuously able to grow at a rate more than growth rate for
FMCG Sector, thereby reaffirming its future stronghold in
Indian market.
Project Shakti - Rural India is spread across 627,000 villages and
possesses a serious distribution challenge for FMCG Cos. HLL has
come up with a unique and successful initiative wherein the
women from the rural sector market HLL products, and hence, are
able to reach the same wavelength as of the common man in
village. Apart from product reach, the initiative also creates brand
awareness amongst the lower strata of society. This has brought
about phenomenal results.
Weaknesses
HLL's 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. HLL's 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.As shown in above figure, the key differentiators
for an FMCG player are ability to call shots and pricing
power, and HLL has shown weakness over both these
factors.
HLL's weakness was its inability to transform its strategies at
the right time. They continued with the same old strategy
which helped them gain profits but was not genuine in this
changed environment. HLL'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 HLL on a deflationary mode.
Opportunities
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, agri, 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 HLL's Business.
SSKI India has gone on to say, "We maintain Out performer
on ITC with a price target of Rs. 2200, while our Under
performer call on HLL remains unaltered (price target of Rs.
160)."
SKIN CATEGORY
PEARS
Introduced in India in 1902, Pears soap has no equal. It is gentle
in cartons.
variant, a green variant for oil control and a blue variant for germ
protection.
launched in 1978.
protection creams sold in the West. All the active ingredients in the
Pond's has been synonymous with skin care in India since 1947.
The impressive track record of Pond's began when Theron T Pond,
the art R&D facilities led from Bangkok, Mumbai, New York and
care and healthy skin for the entire family. Vaseline has been
The need for Vaseline is based on real skin facts. We believe our
looked after. Nobody knows skin, and how to keep it at its healthy
best. This why HUL make products that maintain our skin
LAKME
Half a century ago, as India took her steps into freedom, Lakme,
India's first beauty brand was born. At a time when the beauty
services that cover all facets of beauty care, and arm the consumer
products for the lips, nails, eyes, face and skin, and services like
How to Use:
Apply on face, neck and other
exposed areas atleast 20minutes
before stepping out in the skin. Wait
for a minute before applying makeup
re-apply every 3 to 4 hours.
Click Here for More Details
Results:
Moisturised skin that is protected
from the harmful effects of the Sun.
Key Ingredients:
Aqua, Octyl Methoxycinnamate,
Cyclomethicone, Benzophenone-3,
Titanium Dioxide, Perfume.
How it Works
Moisturises, nourishes and prevents
tanning, wrinkling, spots and keeps
skin soft.
SPF - 15 How to Use
For All Skin types Massage gently onto face, neck,
hands and other exposed parts of the
body. Use daily, all year round,
whether you are indoors or
outdoors. .
Lakme Sun Expert Sun Block
For Sensitive Skin
How it Works
Nourishes your skin and ensures
long-lasting UV protection for
sensitive skin.
How to Use
Massage gently onto face, neck,
For Sensitive Skin hands and other exposed parts of the
body. Use daily, all year round,
whether you are indoors or outdoors.
How to Use
Massage gently onto face, neck,
hands and other exposed parts of the
body. Use daily, all year round,
whether you are indoors or outdoors.
whitening for the consumer, but about a radiant healthy skin that
pores and smoothens out the rough appearance of the skin; White
PRODUCT PROFILE
The Fiama Di Wills range of soaps has been launched under the
sub - brand SkinSense. The first variant to be introduced in this
range is Soft Green. This is a gentle caring soap, which helps
enhance retention of skin proteins making skin look beautiful and
youthful.
Although the market trend shows that these ITC brands are no
competition to Pears right now. But if ITC improves its
distribution network then these brands can be a threat to HUL.
Fairness creams
FAIR ONE
What it does:
• Improves fairness in 4
weeks.
• Protects against sun's UV
rays.
• Moisturises skin even after
shaving.
• Relieves stress and fatigue
signs.
Anti-marks + fairness
concentrate Enhances the skin's overall
fairness
Reduces the number &
intensity of dark spots.
FAIREVER
Fairever
Fairness Cream
Use twice every
day.
Fairever Fairness Cream
with Saffron, Milk and
Fruit Vitalisers
TALCUM POWDER
CINTHOL
SPINZ
The Spinz talc’s target are girls of around 18 to 26 years old from
SEC A and B. Easy-going and fun-loving, who loves to have a lot
of friends with whom she spends time.
SUN CARE
LOTUS
Lotus sun care range is by Lotus Herbals. Lotus suncare has a wide
range of variants available for all skin types. Their SPF(Sun
Protection Formula) ranges from 15 to 60. This caters to the needs
of all kind of people who need different type of SPF according to
their exposure to the sun. Lotus is more priced than Lakme but
gives a good margin to the retailers. This brand specializes in
sunscreen manufacturing and it is very old in this field, due to this
it has gained trust of people. It offers a wide range of facewash,
creams and facepacks which provides protection against sun. The
most sellind variant of Lotus are as follows:-
Block Cream This unique sun block cream has been
(SPF30) specially made for Indian Summer. It provides
(Suits all skin complete protection against harmful UVA &
types) UVB rays of sun, reducing chances of skin
tanning and ageing.
Directions for use: Apply liberally and evenly
on face, neck and any other exposed part of the
body, atleast 30 minutes before stepping out in
the sun. The cream will not get wiped off with
perspiration / water. Avoid contact with eyes.
Active Ingredients: Octyle Methoxy
Cinnamate Z-Cote, Titanium Dioxide and
Benzophenone-3.
PREMIUM CREAMS
OLAY
SKIN CREAMS
Although the sale of these brands are far behind FAL but these
creams are a direct competition.
VASELINE
Vaseline Aloe fresh is the variant for the summers and it is doing
very well. It does not have any direct competition because there is
no other cream in the market for the summers. The other variants
are Vaseline Body lotion and Vaseline Petroleum jelly these are
the winter creams and there sale in summers is slightly low.
The competitors of Vaseline and their margins are as follows:-
COMPETITORS MARGINS
Emami (boroplus lotion) 20%
Nivea 20%
Ayur 18%
Garnier 15%
The finding of the research shows that the estimated market share
of HUL is 42%.
The share of HUL skin category creams in this 42% share is as
follows:-
PBL
3%
VPJ VBL
2% 10%
PCC FAL
8%
PCC
VPJ
PBL
VBL
FAL
77%
Here we can see that the major portion is covered by Fair &
Lovely. It covers 77%. Vaseline body lotion has a share of 10%.
Pond’s cold cream is 8% Pond’s body lotion is 3%.
TALCUM POWDER
POND’S
Pond’s came into being in 1947. Pond’s talc is feminine talc. It is
perfume talc and caters to the needs of the women. It has got a
very strong hold in the market. The consumers prefer to buy at
least two type of talc for their family, pond’s talc form the part of
the every basket.
Its competitors and their margins are as follows:-
COMPETITORS MARGINS
Spinz
Wipro (santoor & enchanteur) 25%
Nivea 20%
Cinthol 14%
OTHERS
18% HUL
SPINZ
EMAMI HUL
2% SANTOOR
45%
CINTHOL
J&J J&J
20% SPINZ
EMAMI
CINTHOL 2%
12% OTHERS
SANTOOR
1%
DFM
46%
PEARS
ITC has launched Fiama Di Wills in competition of Pears. Pears
comes in 3 variants Pears Amber, Oil Control, Germ Shield. The
largest selling variant is Amber. The consumer pattern shows that
those who are loyal to this brand do not switch it easily. The brand
loyalty of this product is more than any other. The other soaps
which are is competition of Pears are Dettol with moisturizers,
Johnson & Johnson, Fiama Di Wills. Fiama Di Wills is a new
product and is being liked by people. It is lagging behind in its
distribution network as there is always stock out of this product. In
the long run it can provide good competition to HUL.
The present market share of pears and it competitors are as
follows:-
J&J
25%
PEARS
FIAMA
PEARS DETTOL
DETTOL 54% J&J
16% FIAMA
5%
OTHERS
14%
GARNIER LAKME
36% LAKME
12%
LOTUS
GARNIER
OTHERS
LOTUS
38%
Others
Garneir 12% Pond's
8% 31% Pond's
Olay
Loreal
Loreal Garneir
17% Others
Olay
32%
CONCLUSIONS & FINDINGS
• The can launch a new variant of Pond’s talc with new fresh
fragrance. This will be for the people who like the brand due
to the good quality that it provides but are bored of the
fragrance that has been provided for so long. This will
counter the competition and satisfy the target customers.