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Hindustan Lever Ltd

Hindustan Lever Ltd (HLL) is India's largest Fast Moving Consumer Goods (FMCG) company. HLL'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 Lever 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. HLL 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, HLL has over 16,000 employees including over 1,200 managers. Its
mission is to "add vitality to life." The Anglo-Dutch company Unilever owns a majority stake in Hindustan Lever
Limited.

In the late 19th and early 20th century Unilever used to export its products to India. This process began in 1888 with
the export of Sunlight soap, which was followed by Lifebuoy in 1895 and other famous brands like Pears, Lux and
Vim soon after. 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). The three companies were
merged in November 1956 and the new entity that came into existence after merger was called as Hindustan Lever
Limited. HLL offered 10% of its equity to the Indian public, and it was the first among the foreign subsidiaries to do so.
Currently, Unilever holds 51.55% equity in the company while the rest of the shareholding is distributed among about
380,000 individual shareholders and financial institutions.

Brooke Bond entered Indian market in 1900 and


in 1903 it launched Red Label tea in the country.
In 1912, Brooke Bond & Co. India Limited was formed. Unilever acquired Brooke Bond through an international
acquisition. Similarly, Lipton's link with India date back to 1898. Unilever acquired Lipton in 1972 and in 1977 Lipton
Tea (India) Limited was incorporated. Pond's (India) had been in Indian market since 1947. It joined the Unilever
ranks through an international acquisition of Chesebrough Pond's USA in 1986.

The liberalization of Indian economy in 1991 and subsequent removal of the regulatory framework allowed HLL to
explore every single product and opportunity segment, without any constraints on production capacity. The 1990s
witnessed a string of crucial mergers, acquisitions and alliances. 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. In one of the most talked about events of India's
corporate history, the erstwhile Tata Oil Mills Company (TOMCO) merged with HLL, effective from April 1, 1993. In
July 1993, Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL). Brooke
Bond Lipton India Limited launched Wall's range of Frozen Desserts in 1994 and by the end of the year, HLL entered
into a strategic alliance with the Kwality Icecream Group families. BBLIL merged with HLL, with effect from January 1,
1996. HLL has also set up a subsidiary in Nepal, Nepal Lever Limited (NLL). The NLL factory manufactures HLL's
products like Soaps, Detergents and Personal Products both for the domestic market and exports to India. In January
2000, as part of its divestment strategy, the government decided to award 74 per cent equity in Modern Foods to
HLL. In 2002, HLL acquired the government's remaining stake in Modern Foods. In February 2007, the company has
been renamed to "Hindustan Unilever Limited" to strike the optimum balance between maintaining the heritage of the
Company and the future benefits and synergies of global alignment with the corporate name of "Unilever".

Note: The above information was last updated on 21-07-2007


Personal care likely to fuel HUL growth

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MUMBAI: FMCG giant Hindustan Unilever (HUL) will declare its annual results for the year ended December 2007 on
Wednesday. Analysts have given a mixed view on HUL’s performance for the fourth quarter, which ended in
December, result for which will be declared on the same day. While HUL has been able to protect margins through
price hikes and cost efficiencies, analysts say the company has to get more pro-active in the market place in terms of
product innovation.

“We expect a 15% growth in topline to Rs 3,627 crore and a 12.5-13% increase in bottomline at Rs 543 crore. The
personal care segment, which is one of the biggest margin grossers for the company, could be one of the main
drivers during the quarter due to the onset of winter. Also, soaps could also put up a decent performance. The only
disappointment for the company could be exports as the rupee continued its appreciation against the dollar,” said
Anand Shah of Angel Broking.

Another local brokerage firm, however, was doubtful about the company reporting a major margin expansion in the
quarter. “Major margin expansion for HUL during the quarter is not likely despite price hikes as the cost of raw
materials has gone up equally,” according to Hemant Patel, an analyst at Enam Securities. Annual revenues have
grown at a compounded rate of 1.5% over the past five years.

Similarly, the company’s bottomline has grown marginally at a CAGR of 0.33% over the same period. This despite
the fact that the company is a market leader in many product lines like soaps, personal care products, etc. In spite of
foraying into new product lines, launching new brands and disbanding unprofitable businesses over the years, HUL is
still not able to generate increased margins.

Expenditure has been steadily rising on many counts like selling and distribution expenses and employee cost,
among others. Moreover, the dynamics of consumer market are fast changing. More players, varied products, retail
marketing and private labels are eating into the marketshare and profitability of the market leader. HUL has been
trying to sharply cut operating costs in the system and incentivise top talent by offering heftier pay packets to fewer
number of people.

Analysts say the company is chalking out clear performance yardsticks and business accountability to ensure a
structure that is responsive to competition. Other companies in the sector like ITC, Marico Industries, Dabur, Colgate
Palmolive and Procter & Gamble have achieved better growth rates on a compounded basis than the FMCG biggie.
Many of these companies have registered impressive rise in their sales and profits for the quarter ended December
2007.

HUL has registered an erratic performance for the first three quarters of 2007 with the June quarter alone reporting
rise in revenues and net profits against the previous quarter. The quarters ended March 2007 and September 2007
rather showed a fall of 23% and 17%, respectively, in net profits when compared with their previous quarters.

Taking into account the average performance of HUL in the past and third quarter results of other FMCG companies,
the company may see around 8-9% increase in its revenues and 10-15% in profits, respectively for the quarter ended
December 2007 and the year ended FY07.

HUL had reported YoY drop of 2% in net profits and rise of 7% in revenues for the quarter ended December 2006.
The company reported above normal profits due to extraordinary items during 2006. Hence, the YoY comparison of
profits for the quarter ended December 2007 may not be comparable due to the higher base of 2006.

Taking into account the average performance of HUL in the past and third quarter results of other FMCG companies,
the company may see around 8-9% increase in its revenues and 10-15% in profits, respectively for the quarter ended
December 2007 and the year ended FY07.

CLSA has estimated the company’s revenues and net profits for the fourth quarter ended December 2007 at Rs
3,600 crore and Rs 560 crore, respectively. Similarly, their estimates for the company’s topline and bottomline for the
year ended FY07 are Rs 13,600 crore and Rs 1,780 crore, respectively.

HUL reports Rs 1,925 crore net profit for 2007

Corporate Bureau
Posted: Thursday, Feb 14, 2008 at 0001 hrs IST
Updated: Thursday, Feb 14, 2008 at 0019 hrs IST

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Mumbai, Feb 13 : FMCG major Hindustan Unilever Ltd (HUL) on


Wednesday reported a 3.8% increase in its net profit at Rs 1,925.4 crore for the year ended
December 31, 2007 as compared to Rs 1,855.3 crore for the year ended December 31, 2006. The
company’s total income rose to Rs 14,180.4 crore for the year ended December 31, 2007 from
Rs 12,457.9 crore for the year ended December 31, 2006.

Announcing the results, D Sundaram, director of finance & IT, HUL said: “In 2007, our net sales
were 13.3% higher than in the previous year with broad based growth across categories leading
to both the HPC and Foods business growing by 12.3% and 20.2% respectively. Gross margin
for the year improved with selective price increases and robust cost saving initiatives.”
According to Sundaram, PBIT increased by 15.4% and PAT grew by 14.9%. “Net profit growth
at 3.8% was not comparable, due to a significant exceptional income from sale of a brand in the
base year (2006),” he explained. The company recommended a final dividend of Rs 3 per share
for the year ended December 31, 2007 on equity shares of Re 1 each.

Commenting on the company’s performance in 2007, Harish Manwani, chairman of HUL said.
“Our business has witnessed the third consecutive year of accelerated double-digit growth for
our FMCG portfolio. We recognise the challenge of inflationary pressures and, in a competitive
context, sustaining cost leadership across the extended supply chain continues to be a key
priority.”

The company has posted a 23.5% increase in its net profit at Rs 631.4 crore for the quarter ended
December 31, 2007 where as the same was at Rs 511.1 crore for the corresponding period in last
fiscal.

“Our A&P ad spend was up by 32% in Q4 as compared to the corresponding period last fiscal.
The results for the quarter are not comparable to those of DQ‘06 to the extent of amalgamation
of Modern Foods (India) Ltd and its subsidiary with the company,” explained Sundaram. HUL’s
stock price closed at Rs 193.05 on BSE -down by 0.34%.

Good Info Read….


• Journey of The Company

– In the summer of 1888, visitors to the Kolkata harbour 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.

• Journey of The Company

– 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).

– Pond's (India) Limited had been present in India since 1947. It


joined the Unilever fold through an international acquisition of
Chesebrough Pond's USA in 1986.

• Journey of The Company

– 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.

• Journey of The Company

– 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.

– HUL has also set up a subsidiary in Nepal, Nepal Lever Limited (NLL).

• Hindustan Lever Limited

– Unilever subsidiary
– About Rs.12000 Crore turnover

– Manufacturers and marketers of daily use categories

• Personal wash Fabric Wash, Beverages

• Oral Care, Household Care, Oils and Edible Fats

• Hair Care, Culinary Products

• Skin Care Ice Creams Branded staples etc.

• Seeds and Fertilizers

• Hindustan Lever Limited Corporate Purpose

– Meet every day needs of people every where

– Anticipate the aspirations of our consumers and customers and


respond creatively and competitively with branded products and
services which raise their quality of lives

– Bring our wealth of knowledge and international expertise to the


service of local consumers - a truly multi-local multinational

– Total commitment to exceptional standards of performance and


productivity

– Willingness to embrace new ideas and learn continuously

• Hindustan Lever Limited Corporate Purpose

– Highest standards of corporate behavior towards employees,


consumers and the societies and world in which we live in .

– This is Unilever’s road to sustainable, profitable growth for our


business and long term value creation for our shareholders and
employees

• Mass Media Folk Arts, CSR Activities, VOW etc. Key is to make the corporate
intervention sustainable RICHNESS REACH LOW HIGH HIGH LOW Corporate
Rural Initiatives NEW PARADIGM Conventional Distribution Channels

• SHAKTI HLL’s RURAL VENTURE

• Rural Venture - Areas of Influence Access Attitudes Awareness Affluence


Discontinuous Increase in direct rural reach Education & Attitudinal shifts
towards Health, Hygiene etc. Create a channel for Brand Communication in
deep rural Catalyze Rural Wealth Creation
• Rural Venture - The Entry Strategy Channel Intervention Re-intermediation
The Integrated Win-Win approach - Affluence - Rural Incomes - Channel for
agri Input/Output - Connectivity Will impact - Access to remote villages -
Awareness - Attitudes Will impact Use the network of SHGs and NGOs for
Direct to Home reach Use the internet to re-intermediate the agri-chain to
improve realizations

• Breaking the vicious cycle of poverty Low Income Low Savings Low
Investments MICROCREDIT

• Profile of Indian Rural Economy Need to stimulate agricultural income to drive


rural wealth

• The Agri-Business Domain Output Knowledge Inputs Services Farmer

• The Key Drivers

– Key Strategic Drivers

• Knowledge Dissemination

• Re-intermediation of the entire Agri-Business Chain to enable


maximization of profits

– Key Enabler

• Technology necessary to operationalise the model and maximize


reach

• …… . Mass Customization a reality DEPTH OF CONTACT WIDTH OF CONTACT


LOW HIGH HIGH LOW Maximizing Reach and Richness The connectivity
Approach XXXXX.com Traditional Media Market Development Farm
Management Services

• Why Shakti?

– Habit Formation for savings

– Target audience are ladies

• Because of habit of people of spending in wrong ways.

– New ways of increasing income with self helping groups (SHG).

– Moving towards modernity.

• Shakti
– HUL has consciously woven India's imperatives with the
company's strategies and operations.

– The company’s main contributions include developing and using


relevant technologies, stimulating industrialization, boosting exports,
adding value to agriculture and generating productive employment
and income opportunities.

– HUL has been proactively engaged in rural development since 1976


with the initiation of the Integrated Rural Development Program in the
Etah district of Uttar Pradesh.

• What in Shakti?

– These factory-centered activities mainly focus on training farmers,


animal husbandry, generating alternative income, health & hygiene
and infrastructure development.

– The principal issue in rural development is to create income-generating


opportunities for the rural population.

– HUL launched Project Shakti in the year 2001, in keeping with the
purpose of integrating business interests with national interests.

• Shakti- Than and Now

– Shakti has already been extended to about 80,000 villages in 15 states


- Andhra Pradesh, Karnataka, Tamilnadu, Maharashtra, Gujarat,
Madhya Pradesh, Chattisgarh, Uttar Pradesh, Rajasthan, Punjab,
Haryana, West Bengal, Orissa, Bihar & Jharkhand.

– The respective state governments and several NGOs are actively


involved in the initiative.

• Shakti- The Boon

– Shakti already has about 25,000 women entrepreneurs in its fold.

– A typical Shakti entrepreneur earns a sustainable income of about


Rs.700 -Rs.1,000 per month, which is double their average household
income.

– Shakti is thus creating opportunities for rural women to live in


improved conditions and with dignity, while improving the overall
standard of living in their families.

– In addition, it involves health and hygiene programmes, which help to


improve the standard of living of the rural community.
• Shakti- Future Orientation

– Plans are also being drawn up to bring in partners involved in


agriculture, health, insurance and education to catalyze overall rural
development.

– Shakti Vani is a social communication program. Women, trained in


health and hygiene issues, address village communities through
meetings at schools, village baithaks , SHG meetings and other social
fora.

– In 2004, Shakti Vani has covered 10,000 villages in Madhya Pradesh,


Chattisgarh and Karnataka.

• Shakti- New Ventures

– iShakti, the Internet-based rural information service, has been


launched in Andhra Pradesh, in association with the Andhra Pradesh
Government's Rajiv Internet Village Program.

– The service is now available in Nalgonda, Vishakapatnam, West


Godavari and East Godavari districts.

– iShakti has been developed to provide information and services to


meet rural needs in medical health and hygiene, agriculture, animal
husbandry, education, vocational training and employment and
women's empowerment.

• Lifebuoy Swasthya Chetna (LBSC) HLL’s RURAL VENTURE

• LBSC

– 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.

• LBSC

– Being India’s leading personal wash health brand, Lifebuoy saw a role
for itself in propagating the message of hygiene and health in villages.
– LBSC is a multi-phased activity which works towards effecting behavior
change amongst the rural population it touches.

– It targets children as they are the harbingers of change in society and


mothers since they are the custodians of health.

• LBSC

– In the initial phase, a Health Development Facilitator (HDF) and an


assistant initiates contact and interacts with students and influencers
of the community, i.e. village community representatives, medical
practitioners, school teachers etc.

– A number of tools such as a pictorial story in a flip chart format, a


"Glo-germ demonstration" and a quiz with attractive prizes
to reinforce the message are used.

– The first interaction with students is then replicated with the women
and finally the rest of the community.

• LBSC

– The programme has touched 27000 villages and 80 mn people over


the last four years.

– In 2006 alone LBSC contacted 10,000 villages in UP, MP, Jharkhand and
Bihar.

– This on-going project is committed to spreading the message of health


and hygiene and touching more lives in rural India over 2007.

• Why All These Programs?

– To make people aware

– To increase the consumption

– To increase the income

– To increase behavior in-

• Awareness and living standard

• Lifestyle

• Self Consciousness

• FMCG Industry
FMCG products are products that have quick shelf turnover, at relatively low
cost and don’t require a lot of thought, time and financial investment to
purchase
FMCG Industry mainly deals with production, distribution & marketing of
packaged goods to all consumers

• FMCG Industry in India


Present
Fourth largest sector in the economy
Size - US$13.1 billion
Strong MNC Presence
Well established distribution network
Competition between organized and unorganized sector
Low Costs of labour and Easy availability of key raw materials

• FMCG Industry in India


Future
Set to reach a size US$ 33.4 billion in 2015
Penetration levels in several products categories low
India one of the largest economies in terms of purchasing power with a
middle class of 300mn
Rural India a huge market still to be tapped
Source: SOI, NCAER

• FMCG – Major Domestic Players


Domestic Players
Britannia India Ltd (BIL)
Dabur India Ltd
Indian Tobacco Corporation Ltd (ITCL)
Marico
Nirma Limited

• FMCG – Major Foreign Players


Foreign Players
Cadbury India Ltd (CIL)
Cargill
Coca Cola
Colgate-Palmolive India
H J Heinz Co
Hindustan Unilever Ltd (HUL)
Nestle India Ltd (NIL)
PepsiCo
Procter & Gamble Hygiene and Health Care Limited

• Hindustan Unilever Ltd


HUL touches the lives of two out of every three Indians everyday
Part of the €40 billion Unilever Group. The Group has more than 400 brands
spanning 14 categories of home, personal care and food products
Presence in over 100 countries and employs more than 174,000 people
worldwide
The Company was incorporated in 1933 but its products have been sold in
India since 1888

• Hindustan Unilever Ltd


India’s largest FMCG Company
Headquartered in Mumbai
Over 700 million consumers
More than 15,000 employees, including 1,300 managers
More than 200 highly qualified scientists and technologists
Shares listed at BSE (Stock code - 500696) and NSE (Stock code –
HINDUNILVR)
Shareholder base of over 3.5 lakh

• HUL – Mission
Mission
Unilever's mission is 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.

• HUL – The Journey so far…


A little bit of the History of HUL formation
• HUL – Geographic Presence
Production
More than 35 manufacturing locations across India, with major hubs being
Assam, Uttaranchal, Himachal Pradesh, Pondicherry and Dadra & Nagar
Haveli
Marketing – All States in India, Project Shakti

• Critical Success Factors


Clear Brand Identity –Visible elements of a brand (colours, design, logotype,
name, symbol) that together identify and distinguish the brand in the
consumers' mind)
Market Reach – Estimated number of the potential customers it is possible to
reach through a an advertising medium or a promotional campaign
Tangible and intangible benefits of the brand
Unique Selling Proposition - Differentiation

• Critical Success Factors


Operational Effectiveness
Contain low cost competition:
Focus on achieving cost competitiveness to counter low cost competition
Right goods, Right time, Right quality @ Right cost
Innovate aggressively:
Innovate, Growth, Mature, Innovate
Ensure the future of business

• Critical Success Factors


Winning Through People
Attract and retain top quality talent:
Business leadership programme or new category organisation structure
Success will only be achieved through highly motivated and effective people
Customer and Supplier Management
Satisfying customers
Management of the total supply chain

• Critical Success Factors


Commitment at all levels
Allowing each unit to develop initiatives
Providing Budgetary Support to sub groups
Strategic Level
Successful implementation of the strategic objectives
Power brand to expand profitably to grow the business (eg: Restructure in
HLL 2001)
IT Systems
Excellence in IT systems
• HUL – Product Portfolio

• SWOT Analysis
STRENGTHS

• SWOT Analysis
WEAKNESSES

• SWOT Analysis
OPPORTUNITIES

• SWOT Analysis

• Ansoff matrix: Products & Brand Strategic Framework


Existing Products
New Products
Existing markets
New markets

• BCG Matrix-HUL
Processed foods
Colour Cosmetics
Hair Care
Skin Care
Premium Soaps & Laundry
Deodorants
Water (PureIt)
Mass Soaps
Beverages
Oral care
Laundry
Sea-food exports

• Structure
Board at the apex-Headed by Chairman,
comprising 5 whole time Directors and 5 independent non-executive
Directors.
Divisions: Each division is self-sufficient with dedicated resources and assets
in sales, marketing, commercial, and manufacturing.
Each category and each function - Sales, Commercial, Manufacturing - is
headed by a Vice President.

• For managing sales operations, HUL divides the country into four regions,
with regional branches in Delhi, Kolkata, Chennai and Mumbai.
In Marketing, each category has a Marketing Manager who heads a team of
Brand Managers dedicated to each or a group of brands.
Each Division has a nationwide manufacturing base, with each factory
peopled by teams of Production, Engineering, Quality Assurance, Commercial
and Personnel Managers.

• Systems
Substantial investments in IT-based sales system
Every salesman now books orders on a palmtop
All orders are fed into a central database from the distributor point.
This extensive network is installed at all 3,500 distributor points—which
makes for accurate on-the-fly demand projections and helps avoid stock-out
losses.

• Style
NitinParanjpe- Youngest CEO & MD
'CEO Factory’-Produced many business leaders
HUL's leadership development model has groomed managers by
providing a well-rounded view of the business through job rotation and
various new assignments.
The system was designed to identify fast-trackers, who were called the Lever
listers and groom them for handling greater responsibilities. For every
position, typically three people competed.

• Shared values
Unilever's mission is 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.
Unilever has earned a reputation for conducting its business with integrity
and with respect for all those whom our activities affect.
Singular belief that ‘what is good for India is
good for HUL’.
It has strategically introduced new products on “think global and act local”
concept
Deep roots in local cultures and markets around the world give it a strong
relationship with consumers.

• Staff
15,000 employees, including 1200 managers, 200 scientists.
HUL has a strong management bandwidth having a team of professionals for
each SBU.
At HUL, career paths are designed such that they will build employees into
business leaders. Employees would start from a managerial level in any of
the following functions: commercial , technical, sales & marketing, IT, HR
The objective of each path is however the same: to give the employee a
strong foundation so that she would be in a position to take on complete
ownership for a brand or a unit.
• Skills
Has in-house manufacturing as well as outsourcing
R&D support from parent company
Large distribution network
Strong management
Has the best marketing talent in the industry

• HUL Strategy
Leverage brand portfolio and consumer understanding by
• Straddling the pyramid & deploying full portfolio
• Driving consumption & penetration opportunity
Winning with consumers, channels, segments/markets of tomorrow
• Build markets and capabilities for the future
• Leverage Unilever scale and know how
Drive increased execution rigour
Step-up in cost efficiency initiatives
Integrate economic, environment & social objectives with business agenda

• Leverage brand portfolio and consumer understanding by


Changing Pyramid – Changing Income Pattern

• Leverage brand portfolio and consumer understanding by

• Identifying the opportunity and filling it is important


Although HUL is market leader in most of the category, its loosing its market
share.

• Increasing consumption:Lifebuoy Hand wash Programme


Since 2002, the project has touched 50,676 villages and 120 million people.
Campaign Impact
•Awareness of germs - 52% to 83%
•Association of germs with disease - 35% to 57%

• Consumers of tomorrow: Dove

• Lipton Tea & Taj Mahal Tea Bags

• Channels of Tomorrow

• Pioneering new channels


In March 2009, HUL adapted ‘go-to-market’programme
First tried out in Mumbai, it was than implemented across all towns and cities
with a population above eight lakh, starting with Chennai.
Earlier, HUL had different distributors for its home and personal care division
and food division in the same area. Now, all the products would be sold by
the same distributor in any one area.
The Go-to-Market model also helps to remove the enormous logistics hitherto
faced by the distributors in their back-end operations, thus removing
significant costs from the system. More importantly, enabling them to focus
on the front-end to deliver better services to end-retail,”

• Pioneering new channels


Project Shakti :
HUL's partnership with Self Help Groups of rural women.
Hindustan Unilever Network (HUN):
Direct Selling Channel - Home & Personal Care and Foods.
Out-of-Home:
Alliance with Pepsi Co. – Vending machine for hot beverages like tea and
coffee.
Health and Beauty services :
Lakme Salons provide specialised beauty services and solutions.
Ayush Therapy Centres easy access to authentic Ayurvedic treatments and
products.

• HUL’s distribution system


7,000 redistribution stockists covering about one million retail outlets.
The general trade comprises grocery stores, chemists, wholesale, kiosks and
general stores.
Hindustan Unilever provide tailor made services to each of its channel
partners.
HUL is using the point of purchase method for much higher level of direct
contact, through in-store facilitators, sampling, education and experience.

• Distribution Strategy - Harnessing Information Technology


An IT-powered system has been implemented to supply stocks to
redistribution stockists.
The objective is to make the product available at the right place and right
time in the most cost effective manner.
For this, stockists have been connected through an Internet-based network,
called RS Net, for online interaction.
RS Net is part of Project Leap, HUL's end-to-end supply chain.

• Distribution Strategy
Distribution at the Villages
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.
The team focuses on building superior availability of products.
In rural India, the network directly covers about 50,000 villages, reaching 250
million consumers, through 6000 sub-stockists.
Distribution at the Supermarkets
HUL has set up a full-scale sales organisation, for this channel to serve
modern retailing outlets.
Product tests and in-store sampling is provided to consumers.

• Segments of tomorrow: Hair Conditioners

• Building New Market : Pure it


Progress
Volume market leadership in South India
>700 towns, 20 states covered
Increasing penetration through retail presence in <10 L population towns
More than 400 safe water zones established
Growing consistently @ > 50%
More than 7 million lives protected
Complete protection …`as safe as boiled water’
Meets US EPA standards
Works without electricity, pressurized piped water
Affordable:
Device Rs 2000 ( $40)
Germkill Battery Rs 350 ($7)
Rs 0.35 per litre ( < 1 $ cent) (incl. initial price)
Unique Promotional Campaign

• Unilever Research and Development Strengths

• Drive increased execution rigor

• Enhanced Customer Service

• Driving cost efficiencies

• Integrate economic, environment & social objectives with business agenda

• Thank You

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