CASE-STUDY ANALYSIS

Presented by :- (GROUP 1)
Presented to :- Dr Uma Shankar Mishra Suraj Satpathy
Akash kumar sahoo
Bishwa Ranjan Mishra
Rajmani Sen
Jagat Jyoti Malla
Samikshya Joshi
Sonali panda
Mrinalini Meher
Bhagyashree Satpathy
Payal Banerjee
Soumya Nayak
Subhashree Dash
A case-study presentation on Tea
marketing of HLL(HUL)
 Introduction
• Hindustan Unilever Limited (HUL) is an Indian
consumer goods company based in Mumbai ,
Maharashtra.
• It is owned by Anglo-Dutch company Unilever
which owns a 67% controlling share in HUL .
• HUL was established in 1933 as Lever Brothers and
in 1956 , became known as Hindustan Lever
Limited. In 2007 , the company was renamed
Hindustan Unilever Ltd.
• HUL ‘s products include foods , beverages , cleaning
agents , personal care products and water purifiers.
 HUL at Glance : People , Reach &
More
• More than 16000 employees , having around
1500 managers
• Reach to 6.4 million retail outlets including
direct reach to over 2 million outlets
• Two R&D centres in India (Mumbai &
Bangalore)
• Website : www.hul.co.in
 Mission & Values
• Work to create a better future everyday.
• 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.
• To inspire people to take small , everyday actions
that can add up to a big difference for the world.
• To develop new ways of doing business with aim
of doubling the size of the company while
reducing environmental impact.
• Believes in high standards of Corporate
Governance.
 Vision
• To earn the love and respect of India , by
making a real difference to every Indian.
 Strength of HUL
• Brand visibility – from soap to mineral water , HUL is
shaping the life of 1.3 billion people daily . Being in
consumer goods market with its 20 consumer
categories that helped HUL in occupying large shelf
space of Grocery.
• Market leader in consumer goods – two out of three
Indian consumers use HUL products.
• Innovative FMCG company – working and developing
innovations in products and manufacturing process
which is helping the HUL to set it as a front runner.
• market share – Through high penetration in the
market , HUL had managed to hold their high market
share in different product categories.
• Extensive and integrated distribution system.
 Weakness of HUL
• Decreasing market share : competitors focusing on a
particular product and eating up HUL’s share like
Ghadi and Nirma detergent eating up HUL’s wheel
detergent market share.
• Large number of brands in different product
categories : sometimes having broad brand portfolio
can lead to confused positioning. Price positioning in
some categories allows for low price competition like
AMUL captured Kwality’s market share.
 Opportunities:
• Expanding market : By penetrating more in the rural
markets through its project SHAKTI AMMA and transition
of uncategorized business to organized one will lead to
further expansion of the consumer goods.
• Awareness in usage rate of consumer goods : people
getting more aware and conscious about the usage may be
through advertising/word of mouth/doctor prescription
resulting in increase in usage rate of these products.
• Increasing income levels : Due to stable political scenario ,
improved literacy rate and controlled inflation , disposal
income of the people is increasing thereby resulting into
upsurge in demand and changing their lifestyle.
 Threats :
• Competition in the market :with increasing number of
local and national players it’s becoming very hard for
the companies to differentiate themselves from others.
There is also threat from counterfeit products
destroying its brand image in the market.
• Price of commodities : increasing price of commodities
will result in further increase in the price . Further
increase in price will result in decrease in sales ,
margins and brand switching.
• Buyers power : with highly diversified consumer goods
market where there are lots of brands claiming
different sorts of benefits , its very difficult for
consumers to stick to a particular brand.
Power Brands of HUL
 Competitors of HUL:
• ITC(Indian Tobacco Company)
• Nestle India
• Dabur India
• Britannia industries
• AMUL
• Cadbury India
Product line:
Market shares :
Marketing Strategies of HUL for Urban
India
• Adopted total productive maintenance (TPM)
to meet zero error, zero loss.
• Focuses on short supply chain for distribution.
• To meet the every needs of people
everywhere.
• Build segments & market for the future where
Unilever has strong expertise.
• Emphasis on direct selling , Franchisee to
reach everyone.
 Marketing Strategies of HUL for Rural
India
• For long term benefits , HUL started Project
streamline in 1997.
• Appointed 6000 sub-stockists that directly covers
about 50,000 villages & 250 million customers.
• Integrate economic , environment & social
objectives with business agenda.
• Project shakti ,partnership with self help groups
of rural women & covers 5000 villages in 52
districts in different states.
 Corporate social responsibility
• Providing education on health and hygiene
• Women empowerment
• Water management
• Rehabilitation of special or underprivileged
children
• Plays active role in natural calamities
 Promotional strategies
• Out-of home : this deals in providing vending
machines for hot beverages like tea and
coffee. HUL’s alliance with Pepsi Co. has
significantly strengthened the channel
• HUN : It is the company’s arm in the direct
selling channel. It represents a range of
customised offerings in home both personal
care and foods.
• Promotion activities by signing celebrities
Marketing Strategy
 The size of market opportunity
• Indians consumes 9 lakh tones of tea every
year
• Nearly 90 % of Indian households are regular
tea drinkers
• Consume nearly 25% of global tea production
in our country
 Target Customer
• Tea lovers
• Youngsters
• Health conscious customers
• Business professionals who can arrange
meeting or can conversation in our Tea arcade
 The Indian tea market…
• Packaged tea market is 213 million kg in
volumes , and valued at Rs. 60 billion
• 231 thousand tons of tea sold in retail in 2008
• Tea consumption ratio Urban : Rural = 56 : 44
Tea brands working under HUL
 Problems faced by HLL
• In 1998 , HLL recorded sales of tea category
Rs. 1.565 crore but
• In 1999 , HLL recorded sales of tea category
Rs. 1.310 crore
• So in 1998-99 the HLL looses 0.255 cr. in
tea(beverages) category
• The company did not know about the tea
consumption patterns of the customers.
 Solution:
• The company have to study the tea
consumption patterns of the customers.
• The company must know about their target
customers to grow up the business.
 Question 1 : Comment on the strategy
used by HLL to segment the customer tea
market.
• Experimental study on three group of
consumers.
• Promotional strategy
• Influencing tea vendors
• Partnership with healthcare professionals to
endorse the product
How did it position its brand to each of
the segment?
• For low class level :- A1 and Tiger provides strong
flavour and energy and also a new variant of A1 with
vitamins that provides extra energy is also launched in
this segment.
• For middle class level :- Red Label and Taaza provides
relaxation. Lipton Taaza also re-launched in a nitrogen
flushed pack which retains the freshness of the tea
powder for a longer period of time.
• For high class level :- “TAJ MAHAL” brand which was
promoted by Bollywood stars like Saif Ali khan,
Madhuri Dixit and also promoted by the famous tabla
player Zakir Hussain.
 2) Analyse the HLL strategy to gain
business from tea stall vendors?
• Experimental study on the needs and
requirements of tea stall vendors which
provides strong flavour tea and gives a large
number of cups.
 How did HLL succeed in attracting tea
stall vendors?
• First of all the HLL company created a good life
club for tea vendors(who joined the club will get
incentives or freebies for every purchase.) and
created a unique distribution channel for
providing a daily supply to these road side stalls.
• About 800-1000 people on cycles deliver the
supply ranging from 500gm to 5Kg packs to these
stalls.
• In the present HLL sells nearly 15000 tons of tea
daily through this route.
 CONCLUSION
• Hindustan Unilever Limited is a most admired
FMCG company of India giving tough competition
to many other players in the sector like ITC ,
Nestle , P&G etc.
• Its understanding for consumer , leveraging
technology and innovation to connect with them
stands its apart.
• The deep insight and continuous R&D in
marketing its products make the company to be
part of everyday life of every 2 out of 3 Indians.