HINDUSTAN UNILEVER- TRANSFORMING A BRAND INTO A

SOCIALLY RESPONSIBLE LEADER.

CASE STUDY
HINDUSTAN UNILEVER- TRANSFORMING A BRAND INTO A
SOCIALLY RESPONSIBLE LEADER.

Amity International Business School

Aditya Agarwal
A1802014167
Faculty Guide- Dr. Kokil Jain
Industry Guide- Mr. Shashank Shekhar

[Type text]

EXECUTIVE SUMMARY

The main objective of this case is to find, what are the steps Hindustan Unilever Ltd. is adapting
to be market leader and to differentiate itself from its competitors. What is the steps company is
utilizing to find current trend in the market. To study various brands of HUL. To study the
competitive brands in the market of, home care products, Food brands, and personal care
products. To find the market share of the HUL brands and its competitive brands. Key areas of
strength and weakness for HUL brands. To develop a promotion plan for brand communication
of the HUL. What are the marketing strategies of HUL?
Unilever is one of the worlds oldest multinational companies. Its origin goes back to the 19th
century when a group of companies operating independently, produced soaps and margarine. In
1930, the companies merged to form Unilever that diversified into food products in 1940s.
Through the next five decades, it emerged as a major fast-moving consumer goods (FMCG)
multinational operating in several businesses. In 2004, the Unilever 2010 strategic plan was put
into action with the mission to bring vitality to life and to meet everyday needs for nutrition,
hygiene and personal care with brands that help people feel good, look good and get more out of
life. The corporate strategy is of focusing on core businesses of food, home care and personal
care. Unilever operates in more than 100 countries, has a turnover of 39.6 billion and net profit
of 3.685 billion in 2006 and derives 41 per cent of its income from the developing and
emerging economies around the world. It has 179,000 employees and is a culturally-diverse
organization with its top management coming from 24 nations. Internationalization is based on
the principle of local roots with global scale aimed at becoming a multi-local multi-national.

INTRODUCTION

Hindustan Unilever Limited (HUL) is one of the India's largest Fast Moving Consumer Goods
Company with a heritage of over 75 years in India and touches the lives of two out of three
Indians.
HUL works to create a better future every day and helps people feel good, look good and get
more out of life with brands and services that are good for them and good for others.
With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin
care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water
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purifiers, the Company is a part of the everyday life of millions of consumers across India. Its
portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair
& Lovely, Ponds, Vaseline, Lakme, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe,
Brooke Bond, Bru, Knorr, Kissan, Kwality Walls and Pure-it.
The Company has over 16,000 employees and has an annual turnover of around Rs.19, 401
crores (financial year 2010 - 2011). HUL is a subsidiary of Unilever, one of the worlds leading
suppliers of fast moving consumer goods with strong local roots in more than 100 countries
across the globe with annual sales of about 44 billion in 2011. Unilever has about 52%
shareholding in HUL.
Over 100 years' link with India. In the summer of 1888, visitors to the Kolkata harbor & 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.
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).
These three companies merged to form HUL in November 1956; HUL offered 10% of its equity
to the Indian public, being the first among the foreign subsidiaries to do so. Unilever now holds
51.55% equity in the company. The rest of the shareholding is distributed among about 380,000
individual shareholders and financial institutions.
The liberalization of the Indian economy, started in 1991, clearly marked an inflexion in HUL's
and the Group's growth curve. Removal of the regulatory framework allowed the company to
explore every single product and opportunity segment, without any constraints on production
capacity.
Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the most
visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills Company
(TOMCO) merged with HUL, effective from April 1, 1993. In 1995, HUL and yet another Tata
company, Lakme Limited, formed a 50:50 joint venture, Lakme Lever Limited, to market
Lakme's market-leading cosmetics and other appropriate products of both the companies.
Subsequently in 1998, Lakme Limited sold its brands to HUL and divested its 50% stake in the
joint venture to the company.
HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994,
Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary Pads. HUL has
also set up a subsidiary in Nepal, Nepal Lever Limited (NLL), and its factory represents the
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largest manufacturing investment in the Himalayan kingdom. The NLL factory manufactures
HUL's products like Soaps, Detergents and Personal Products both for the domestic market and
exports to India.
HUL is one of the largest FMCG company in India with total sales of Rs.12,295 crore and net
profit of 1855 crore in 2006. There are over 15000 employees, including more than 1300
managers. The present corporate strategy of HUL is to focus on core businesses. These core
businesses are in home and personal care and food. There are 20 different consumer categories
in these two businesses. For instance, home and personal care is made up of personal wash,
laundry, skin care, hair, oral care, deodorants, colour cosmetics and ayurvedic personal and
health care, while food businesses have tea, coffee, ice creams and processed food brand. Apart
from the two product divisions, there are separate departments for specialty exports and new
ventures.
State the strategy of Hindustan Uniliver.
The purpose of HUL was to bring importance to life and to satisfy the daily needs of the
customers in areas of personal and household care. It also strived to create an awareness among
the people related to nutrition and hygiene .To grab opportunities in untapped rural and food
processing market ,HULs corporate level strategy was to shift the decision making power from
subsidiary to its headquarters .HULs strategy remained focused in creating power brands and
creating margins .One of HULs strategy is direct selling .For the rural areas , HUL started
project streamline in 1997.HUL have followed the strategy of building its distribution channels
in transitional manner .They have restructured their core business in two divisions i.e. food ,
home and personal core products .It focuses mainly for the improvement in the products already
existing in the market.HUL tries to bring a change in their job management structure by taking
the step of reducing managerial job classes and developing deep level expertise .Apart from
that ,HUL also have few pioneering strategies .These include building market and building
brands ,launching brands when innovative pipeline is full .Also they believe in having clarified
long term strategies and delivering sustainable performance.
There is large no. of FMCG companies in the market, to find the defining strategies used, the
methodology used is interview and survey method.
Data Collection Method:
For this research study, primary data as well as secondary data was collected
Primary Data has been collected through personal contact. For this purpose both questionnaire
and one-on-one interview was considered with the consumers, shop owners and distributors &
suppliers of the company.
Secondary data has collected from magazines, newspaper, company literature and websites.
Aditya Agarwal A1802014167

Data analysis:
Analyzing codes to each question were awarded. Thereafter which was written and than analyzed
MAJOR FINDINGS
Major competitors
1. Dabur
2. Jhandu
3. Johnson &Johnson
4. Cavin Care
5. Procter & Gamble
6. Britannia
7. ITC
8. Gillette

SAMPLING TECHNIQUE
For my survey I used Cluster Sampling technique. I selected a sample of 100 people around the
area and interviewed them according to the questionnaire. In the survey I tried to find out their
preferences & tastes, their purchasing habit, are they brand loyal or they consider their friends
advice or some reference group during purchasing. I also tried to find out that are they satisfied
with the quality or present stature of product, did they want any change in the existing product.
I also interviewed some of the shop owner and distributors and try to find out what the company
is doing to sustain their customer and what new changes they are bringing in their product to
gain competitive advantage from other competitors

RESEARCH INSTRUMENT
Research instruments, for the purpose of primary data collection were Questionnaires. The
Questionnaires were designed in two sets, one is for customers and another is for shop-owners
and distributors.
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 The first set is to find out about the needs and preferences of the customers and what they want
from in the product and also the level of knowledge about different products in the market.
Second set is all about what are the steps company are taking to get about the information
about the changing preferences in the taste and needs of the customers and what company is
doing to sustain their market position as well as to tap new market.
DATA ANALYSIS
For the analysis of data collected through survey work, a series of steps were followed which are
given in a chronological order
Each question of the questionnaire was assigned codes (coding)
Each questionnaire was punched into ms-excel sheet thus forming a data base (punching)
Further the data was analyzed by using diagrams, graphs, charts etc.
The graphic rating scale and ranking method was used to measure the response and attitude of
the customer.
Finally, an effort was made to extract meaningful information from analyzed data, which acted as
a base for the recommendations.
Which of the following companies' FMCG products do you prefer to use?
HUL (Hindustan Unilever Limited)
ITC (Indian Tobacco Company)
P & G (Procter & Gamble)
Nestl
Dabur

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Figure 1

CONCLUSION
In recent years, the FMCG sector declined due to down trading. Also because of presence of
large number of companies trying to seize this opportunity, this force the traditional and old
HUL for the change and thus, their transformation has resulted in a new HUL, which has
successfully faced this challenge and reversed this trend. It has done so by substantially
strengthening their brands and building capabilities. This has already begun to yield benefits
and they are returning to growth. Volume growth is being followed by value growth, which in
turn is bringing profit growth.
India is one of the most exciting markets offering great potential. Over the next 10 years, the
per capita income in India is likely to double. In FMCG, there is an opportunity to catalyze
penetration, increase usage, and upgrade consumers. As a result, the FMCG market is
expected to grow to over Rs.100, 000 cores from its current base of Rs.40, 000 crores.
The new Hindustan Lever sees an exciting opportunity for growth. They have 35 powerful
brands covering all segments, with leading market positions in most. Today, these are
stronger and more relevant to the consumer than ever. The people are energized by the scale
of the opportunity and determined to seize it. The scale of the business and operations gives
them the resources needed. They are delivering good services and the changes they brought
in the products are well taken by the customers, by this they are generating sustainable
profitable growth.

Aditya Agarwal A1802014167

RECOMMENDATIONS AND SUGGETIONS

As it is obvious from the study the products of HUL have approached the high water
mark of sale in the global consumer market. However, there are genuine reasons to
observe that they have yet to attain the cutting edge status on many counts. In this regard
a few suggestions can be made to give the required boost to the marketing prospects of
HUL products. These can be summed up as follows:

An attempt should be made by HUL management to tap all the potentials offered by the
global market by devoting a more substantial, efficient and better equipped resource base.
This task can be accomplished in the first place by implementing a stronger and more
ending distribution channel for various products so that even those sections of consumers
who are not accessible so easily, can be covered with greater ease.

Efficient infrastructural base coupled with better and more comprehensive advertising
strategies should be resorted to; though HUL is presently surfing ahead of others on the
path of taking some great initiatives it should be more concerned about it for the purpose
of corporate image building.

Aditya Agarwal A1802014167