Hindusthan Unilever

Limited
Case Study
Koushik Dutta
MBA Marketing
Sem-3, ID-265113021
School of Management Sciences, IIEST Shibpur
Company overview

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's products include foods, beverages,
cleaning agents and personal care products.
HUL was established in 1933 as Lever Brothers India Limited
and, in 1956, became known as Hindustan Lever Limited, as a
result of a merger between Lever Brothers, Hindustan
Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is
headquartered in Mumbai, India and employs over 16,500
workers, whilst also indirectly helping to facilitate the
employment of over 65,000 people. The company was
renamed in June 2007 as “Hindustan Unilever Limited”.
Brands - hul

 The company has a distribution channel of 6.3 million outlets and owns 35 major Indian brands.[8]
Its brands include:
Brands - hul

 HULis the market leader in Indian consumer products with presence in over 20
consumer categories such as soaps, tea, detergents and shampoos amongst others
with over 700 million Indian consumers using its products. Eighteen of HUL's
brands featured in the ACNielsen Brand Equity list of 100 Most Trusted Brands
Annual Survey (2012), carried out by Brand Equity, a supplement of The Economic
Times.
 The "most trusted brands" from HUL in the top 100 list (their rankings in
brackets) are: Clinic Plus (4), Lifebuoy (10), Fair & Lovely (11), Rin (12), Surf Excel
(13), Lux (14), Pepsodent (17), Closeup (19), Pond’s (20), Sunsilk (26), Dove (37),
Vim (43), Pears (79), Lakme (81), Vaseline (86), Wheel (87), Hamam (95) and
Rexona (96).
 Thelatest launches for Hindustan Unilever include: Surf Excel Easywash; Lakmé
eyeconic range; Vim Anti Germ bar;Pureit Marvella UV with Advance Alert System;
TRESemmé: For Salon style hair at home everyday; Clinic Plus: Milk Protein
Formula A++; Comfort 1 Rinse; Bru Exotica Guatemala; Closeup: Deep Action;
Dove Hair Fall Rescue Treatment; Taaza: Taazgi bhari chaai, dimaag khul jaaye.
© HUL
Brands - hul

 The company has a distribution channel of 6.3 million outlets and owns 35 major Indian brands.[8]
Its brands include:
 SWOT Analysis
Strengths:
•Strong brand portfolio, price quantity & variety.
•Innovative Aspects.
•Presence of Established distribution networks in
both urban and rural areas.
•Solid Base of the company.
•Corporate Social Responsibility(CSR)
Weaknesses:
•"Me-too" products which illegally mimic the labels and
brands of the established brands.
•Strong Competitors & availability of substitute products.
•Low exports levels.
•High price of some products.
•High Advertising Costs.
 SWOT Analysis
Opportunities:
•Large domestic market – over a billion populations .
•Untapped rural market.
•Changing Lifestyles & Rising income levels, i.e. increasing per capita income
of consumers.
•Export potential and tax & duty benefits for setting exports units.

Threats:
•Tax and regulatory structure.
•Mimic of brands
•Removal of import restrictions resulting in replacing of domestic brands.
•Temporary Slowdown in Economy can have an impact on FMCG Industry.
Our first priority is to our consumers, then
customers, employees and communities. When we
fulfill our responsibilities to them our shareholders
will be rewarded.
Question no 1
strategies HUL
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.
Also uses Direct selling channel(HUN), franchisee to reach everyone e.g. Aviance, Ayush.
Build segments & market for the future where Unilever has strong expertise.

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.
• Market leader Hindustan Unilever (HUL) is setting up 14 new consumer clusters as part of
an aggressive initiative to drive growth across smaller but fast-growing markets cross India.
Rural markets contribute to 55% of the total FMCG consumption in India.
Corporate social responsibility
 Providing education on health and hygiene

 Women empowerment

 Water management

 Rehabilitation of special or underprivileged children

 Care for the destitute and HIV-positive

 Rural development.

 Plays active role in natural calamities

 Started in 2001, Shakti is HUL's rural initiative, which targets small villages with
population of less than 2000 people or less.

Micro-enterprise opportunities for rural women

Providing health n hygiene education through shaktivani program

ishakti portal

Shakti has already been extended to about 15 states ,80,000 villages in with 45,000 women
entrepreneurs and generating Rs.700-1000 per month to each women.

1
Question no 2
strategies for Pepsodent to compete with Colgate
in urban market
SEGMENTATION
• Rural Areas
Geographic • Urban Areas

• Normal Use
Behavioural • Whitening
• Complete Care

• Pepsodent G
Demographic • Pepsodent Kids
• Pepsodent Milk Teeth Strawberry

Most of Pepsodents products are sold in the urban areas.

The sales from the Urban areas constitutes approximately 80% of their income.
Pepsodent spread awareness of the benefits of oral hygiene. This awareness would therefore help
increase its sales, in the rural areas
Geographical Segmentation Behavioural Segmentation

 The urban market for toothpaste is  Variants to suit different consumer preferences
almost stagnant.
G for Gum Care
 Hence for deeper penetration in the Germicheck for Cavities
rural markets they have taken the
following measures Whitening for White teeth
Smaller 100gms packs priced at 10 rupees
Tooth campaigns at various schools in villages. Age
 Pepsodent Kids
1. Barbie (pink color)
2. Superman (Blue color)
3. Tom & Jerry (Orange color)
TARGET MARKET SELECTION
 Pepsodent is currently into Selective Specialization
 Pepsodent Kids for kids
 Smaller and cheaper variants for rural markets
 Pepsodent complete for the educated urban consumer

Pepsodent positioning:
 Pepsodent was launched in 1993 by HUL to capture the market from Colgate.
 It was launched in the platform of Germ fighting property.

 Pepsodent have experimented with its positioning althrough its life.

 Ad Campaigns to supplement this positioning:
Lasting Protection for hours
Germ Fighting Campaign
Dental Insurance
Dishum Dishum
Bhoot Campaign
 Five Product Levels

 Pepsodent has its products

which cover a large area
 Their products are
 Pepsodent Germicheck +
 Pepsodent Whitening
 Pepsodent 2 in 1
 Pepsodent G
 Pepsodent Kids
Protection. Pepsodent has no
Colgate vs Pepsodent equivalents (Pepsodent
Complete has been
 Colgatealso has 4 other variants – Salt, discontinued).
Herbal, Total and Cibaca Family
Pepsodent has the ‘2 in 1’ variant for
which Colgate doesn’t have an
equivalent.
 Overall, Pepsodent is priced at
Some of the variants mentioned above
the same level as Colgate, however,
have sub-variants which have a price
they have different selling points.
variation of 1-2 Rs.
 Pepsodent has the ‘Offers
protection against germs’ angle while
Colgate has the ‘Makes teeth stronger’
angle.
 Toothbrushes from Pepsodent as
well as Colgate are priced Rs.30-40.
Oral-B, the main competitor in this
field, has toothbrushes ranging from
Rs.25 to over Rs.50 due to greater
product variety.
PRODUCT DISTRIBUTION CHANNEL
Strategies for Pepsodent
 Along with an offer of free dental check-ups, HUL is also planning to organise health camps
involving villagers to fortify its campaign.
 “To promote Pepsodent, we will also offer free samples to the villagers to try out the product and
offer discount coupons on wrapper redemption schemes,”

Discounts
 During their promotional offers, Pepsodent sells its products at a discounted price.
 Else they offer products with offers. E.g Buy 1 get 1 free or 150g + 150g = Rs 40 and not Rs 50
Future Prospects to Increase Its Sales
 1. A kit can be introduced along with a “Kids Stand” to hold only the
Pepsodent Kids toothpaste and toothbrush in sockets. The sockets must
be made to hold only the Pepsodent products.
 2. The Kids Stand can be introduced in variety of themes matching
different characters. The kit can also contain a booklet/ sheet depicting
a small story or characters description. The children view these as their
toy and also feel proud of owning it.
 3. Children generally use the toothbrush for 3 months but the
toothpaste gets over in a month considering 40 gm pack. Hence once the
tooth paste gets over, children refill the socket with Pepsodent Kids
toothpaste in that place
Question no 3
strategies for detergent power for rural mass
Indian Laundry Market - $1.3 billion

Euromonitor International:
Marketing mix
 The Marketing mix is a set of four decision variables which need to be taken before launching any new
product. These variables are also known as the 4 P’s of marketing. These four variables help the firm in
making strategic decisions necessary for the smooth running of any product / organization. These variables are
 Product: A product can be divided into three parts: the core product, the augmented product and the tertiary
product. Before deciding on the product component there are some questions which we might need to ask ourselves.
 What product are we selling?
 What would be the quality of we product?
 Which features are different from the market?
 What is the USP of the product?
 Whether the product will be branded as sub brand or completely new?
 What are the secondary products which can be sold along with primary (Warranty, services)
 Price: Pricing of a product depends on a lot of different variables and hence it is constantly updated. Major
consideration in pricing is the costing of the product, the advertising and marketing expenses, any price fluctuations in
the market, distribution costs etc
 Place: Place refers to the distribution channel of a product. The place where the product is distributed depends on the
product and pricing decisions, as well as any STP decisions taken by a firm.
 Promotions: Promotions in the marketing mix includes the complete integrated marketing communications which in
turn includes ATL and BTL advertising as well as sales promotions. Promotions are dependent a lot on the product and
pricing decision.
 Marketing mix- price india price war

Flash back to the 80’s

The first Detergent War was fought in the
80’s when a small manufacturer in Gujrat
aggressively marketed a detergent powder called
“Nirma” Nationally at one-fifth of the price of
existing brands.

The launch changed the profile of

the Indian Detergent Industry.

Loss its Market Share

Brands
 Launched in 1969, Rin with the power of its thunderous lightning flash has become a
household name synonymous with dazzling white clothes.
 A Value added brand with different variants e.g. Rin matric & Rin advanced.
 Rin has won a number of accolades, the most recent being voted as the Most Preferred
Detergent brand in India at the Awaaz Consumer Awards in 2006.

 Sunlight, A Heritage brand launched in 1888

 In the form of detergent cake.
 Value added brand i.e. priced over Wheel but below Rin.
 Famous in WB & Kerala

 Wheel, low priced detergent.

 Introduced in 1987 to compete with Nirma.

 Surf Excel, launched in 1948 under the brand name ‘Surf’ in Pakistan & in 1959 launched in India
as a first detergent powder. Initially, the brand was positioned on the clean proposition of
“washes whitest”.
COMPETITORS
 SURF EXCEL: ARIEL
 WHEEL: NIRMA
 RIN: TIDE
 Marketing mix- price india

The pricing strategy of the company for detergents have always been in accordance with its
competitor, consumers’ income level.

Surf Excel Bar

Surf excel
Liquid Detergent
Marketing mix- Promotion india
Marketing mix- Promotion ndia
Marketing mix- Promotion india
Marketing mix- Promotion india

st
 1 national detergent brand on TV
 Different format of communication
 Organizing various occasions like Children festival
 Sales promotion through aggressive pricing
 Quality centric approach i.e. Surf excel = 10 hands power.
 Very much engaged with society mainly children
 Providing tips for the children on outdoor games

Dag Achhe Hain – The tag line of Surf excel

Marketing mix- Promotion india CHILDREN’s Surf Excel
Marketing mix- Promotion india Why “DAG ACHHE HAIN”???

Dag of #Achaar, #Paint & #Clay are not big deal for Surf Excel to remove.
So, enjoy the moment of DAG.

Dag ache hain!

Marketing mix- Promotion india
Marketing mix- Place india

HUL distribution network – key strength

which helps reach out its product across the length and width of the vast country.
Direct coverage in over 1 million retail
80000 stockiest
30000+ supplier and associates
Available in every shopping mall, retail stores like BIG BAZAR, MORE etc.

 Network
 Factory »»» Company »»» Warehouses »»» Distributor »»»
Market
 Factory »»» Wholesaler & Big retailers (Bulk Orders)
»»» 35% Sales
Thank you