INTRODUCTION

Hindustan Unilever Limited is Indias largest fast moving consumer goods company. Company with a scale of combined volumes of about 4 million tones and sales of Rs.13, 718 crores. Mission that inspires HUL's over 15,000 employees is to "add vitality to life". With 35 Power Brands, HUL meets every day needs. HUL is also one of the country's largest exporters; it has been recognized as a Golden Super Star Trading House by the Government of India. One of the most respected MNC operating in India

CORPORATE PUPROSE
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. Our deep roots in local cultures and markets around the world give us our strong relationship wit h con su me r s a n d a r e t h e fo un da ti on f o r ou r f ut ur e gr o wt h . We wi l l br i ng ou r we a l t h o f knowledge and international expertise to the service of local consumers - a truly multi-local multinational. Our long-term success requires a total commitment to exceptional standards of performance and productivity, to working together effectively, and to a willingness to embrace new ideas and learn continuously.

THE MISSION add vitality to life.

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THE VISION Unilever products touch the lives of over 2 billion

people every day whether that's through feeling great because they've got shiny hair and a brilliant smile, keeping their homes fresh and clean, or by enjoying a great cup of tea, satisfying meal or healthy snack ..

THE Products
Lux, lifebuoy, dove

Personal wash

Pears, rexona, breeze,

Laundry

Surf excel Wheel sunlight

Fair & lovely

Skin care

Ponds vaseline

Hair care

Sunsilk

Clinic
Pepsodent closeup

HINDUSTAN UNILEVER LTD

Oral care

Deodorants Color cosmetics

Axe rexona

lakme
ayush

ayurvedic

HULs Strategy:
Focus on innovation Prioritized opportunities which built upon existing assets and capabilities Avoided Management talent to work on too many projects

Entered rural market through Breeze 2 in 1 In 1995, launched Kissan Annapurna iodized salt Strong competencies in marketing and R&D Partnership with manufacturers Cost competitiveness due to competition from local marketers Encapsulation technique to retain iodine in the salt
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Business Strategies:
The company will compete with low price competitors by playing to their strengths - using strongest brands backed by superior technology and the lowest cost supply chain. Company will continue investment in technology, both to make better products and secure cost advantage. There is a big opportunity to grow processed foods, which are still a very small proportion of the overall largely, commoditized foods market, HUL chairman said.

Corporate Strategy:
HUL enjoys a formidable distribution network covering over 3400 distributors and 16 million outlets. The new sales organization named 'One HUL' brings "Household and Personal Care" and foods distribution networks together, thereby aligning all the units towards the common goal of achieving success. HUL has been continuously able to grow at a rate more than growth rate for FMCG Sector, thereby reaffirming its future stronghold in Indian market.

Functional Strategy:
Consider Sunsilk - To perk up volumes, HLL occupied various price points: 8 ml sachet for Rs 2.50. 50 ml bottle for Rs 35 100 ml bottle for Rs 55 and the 200 and 300 ml bottles.

 It also introduced 100-ml smart packs targeted at small towns with a price tag of Rs 35. This was a ploy targeted at the heavy sachet users to upgrade them into bottle usage. Recently, HLL launched a mega promotion which offers prizes ranging from 2.5 kg of gold to gold coins to those who collect sachets of shampoos. Clearly, hair-care has come of age at HLL.

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-stockiest 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.

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.

Swot Analysis Of Hindustan Unilever

STRENGTHS:
Strong and well differentiated brands with leading share positions. Brand portfolio

i n c l u d e s both global Unilever brands and local brands of specific relevance to India. Consumer understanding and systems for building consumer insight. Strong R&D capability well linked with business. Distribution structure with wide reach, high quality coverage and ability to leverage scale. High quality manpower resources. Strong and well differentiated brands with leading share positions Distinctly placed products providing reach to every segment of society.

WEAKNESSES:

Increased consumer spends on education, consumer durable, entertainment, travel etc. resulting in lower share of wallet for FMCG.

 Limited success in changing eating habits of people. Price positioning in some categories allows for low price competition. High Social costs (housing, food grains & firewood, health and other welfare measures) in the Plantation business Price positioning in some categories allows for low price competition like Amul captured Kwalitys market. Limited success in changing eating habits of people. Competitors focusing on a particular product and eating up HULs share, like Nirma focusing on soaps and detergents.

OPPORTUNITIES:
Market and brand growth through increased penetration especially in rural areas. Upgrading consumers through innovation to new levels of quality and performance. Emerging Modern Trade can be effectively used for introduction of more upscale Personal Care products. Growing consumption in Out of Home categories. Position HLL as a sourcing hub for Unilever companies in various countries. Leveraging the latest IT technology Growing consumer base due to increasing income levels and new consumers from lower strata of the society.

THREATS:

Low priced competition now present in all categories. Grey imports. Spurious/counterfeit products in rural areas and small towns. Changes in fiscal benefits. Unfavorable raw material prices in oils, tea commodity etc Unfavorable raw material prices due to inflation, reducing profitability. Heavy onslaught of competition in the core categories from emerging players like ITC will result in higher advertising expenditure Spurious/counterfeit products in rural areas and small towns. Reduction in real income of consumers due to high inflation.

STRATEGIC IMPLEMENTATION
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Focus on product innovation/ relaunches/ development of new markets:

Successful relaunch of Lux helped volume growth in the soaps segment and market share seems to be stabilizing now. Fair & Lovely winter fairness cream was relaunched and the company is seeing good growth. In the hair & oil category, Dove and Clinic Plus grew strongly and the former is now the No. 1 brand in modern retail. Sunsilk was relaunched in November 2009 and growth momentum continues in this category as well. Launch of Cifcontinues to see good momentum. Brooke Bond Sehatmand was launched to attract down trading customers. The tea also projects additional health benefits and should lead to filling up of the void in the discount tea segment. Knorr soup is registering good growth post relaunch. In the ice cream category, HUL launched the Litchi Zap and 85 swirl parlours are in operation now, recording good growth in the segment.

Recent price cut in Rin/ price war in laundry:

Currently, the price cut in Rin is just a price promotion/offer over the near term. This will be evaluated again. HUL took a 30% price cut in Rin washing powder (to INR 50 from INR 70). Price cuts culd also lead to upgrading to mid segment from lower price points. Growing India opportunity means competition will increase.
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However, HUL remains focused on leadership. It remains confident of growth over medium and long term. Impact on HUL, if any, depends on cost scenario, competitive intensity.

Market share improvement is the key objective over near term:

HUL will focus on competitive growth over near term. However, profitable growth remains the key objective over the medium and long term. There is a change in strategy from a competitive and profitable growth to competitive growth over the near term. HUL is focused on speed to market and determined to grow ahead of the market.

New products/innovations which have done well:

Fabric conditioner, hair conditioner, OOH consumption of ice creams, water, premium skin lightening.

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Raw material costs:

HUL has forward cover for key commodities and keeps reviewing the time lines. The company will relentlessly drive down costs.

Ad spends
The level of ad spends will depend on competitive intensity and product innovations. Launches and relaunches will keep happening. However, over the near term, ad spends are likely to remain high. Ad spends are unlikely to go back to10% of sales.

Down trading in tea and detergents:

HUL has introduced a new variant in low end of tea which is competitively priced with respect to regional players. The new brand is Brooke Bond Sehatmand and has been introduced in UP, Bihar, and MP. Penetration is high in these two segments which partly explains the down trading. Prices of tea as a commodity have shot up so up trading decreased from packets to lose consumption.

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Product Development:
HUL has concentrated in a very wide way on the product development factor. The product has been focused on various segments from low price products to premium products. Most of our products are developed on a global scale by following the policies and procedures laid down by Unilever. They have entered untapped markets and tried to focus on products which can satisfy the demands of all class of customers. Their product ranges are health care, personal care, household care, beverages etc. They have developed products which focus on all ranges. Inbound logistics of HUL is very efficient in the manner it excels itself the form of storing in warehouses and in the form of maintain the goods manufactured. The logistics management is very efficient with respect to rural areas. The focus of HUL is to make available the goods to the shops and retail outlets which supplies HUL products to its consumers.

Procurement and Manufacturing:

The procurement procedure undertaken by HUL is followed by a combination of backward integration and with suppliers. HUL has its own farms for the production of agro based products. HUL has a strong network of suppliers which supply materials for the production purpose. HUL has a speedy process of procurement to make it reach to production as it is needed to meet the growing demand. HUL has its own 19 tea estates which produces tealeaves which are certified by Rain Forest Alliance. HUL has a speedy process of manufacturing. Material consumed and Purchase of goods is round about INR 8,901 crores in2009-10. HUL has its own production departments which focus only on packing of goods produced.

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Service and Logistics:

Hindustan Unilever, which once pioneered distribution in India, is today reinventing distribution - creating new channels, and redefining the way current channels are serviced. In the process it is converging product availability, with brand communication and brand experience. Services and Logistics of HUL are very efficient. The sales services of HUL are very efficient as their supply chain management is very efficient. Hindustan Unilever's distribution network is recognized as one of its key strengths. Its focus is not only to enable easy access to our brands, but also to touch consumers. HUL's products, manufactured across the country, are distributed through a network of about 7,000 redistribution stockiest covering about one million retail outlets. The distribution network directly covers the entire urban population.

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Training and development

Learning is an integral part of life at Unilever & there are many ways in which you can develop your skills, both professional & personal.

On the job

Professional skills

Continual update

Personal development

On the job: You'll learn much of what you need to know by working with knowledgeable colleagues and receiving regular coaching and feedback. Wherever you join, in whatever capacity, you'll have a wide variety of experiences developing skills relevant to your job and giving you an overview of how our company works.

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Professional skills: Specific programmes ensure you build expertise in your chosen career. The courses often use e-learning that enables you learn at your own pace and take control of your development. In some areas you can study for professional qualifications and, as you progress, you'll develop your leadership capabilities. Continual update: Each function has its own Academy a team that continually updates its professional learning curriculum. E-learning modules are then made available on a dedicated intranet portal. Here you'll also find the very latest news, articles and thinking. Essentially, everything you need to keep in touch with the business. Personal development: Passion, energy and creative thinking are traits that you'll already have when you join. But equally important is the ability to understand who you are as an individual and what you want to achieve from your career. We offer a whole range of personal development opportunities which can be tailored to your specific goals. Unilever has a strong reputation for the quality of its management and workplace training. In 2011, 128,000 people were registered for the Unilever Learning Academys courses. Much of our training is now delivered online through over 7,600 training modules. For example, in 2011 over 95% of our managers completed the first of a new set of modules on our Code of Business Principles. A particular challenge for 2012 and beyond is to build our understanding and capability on sustainability. Already over 6,000 people have completed a Unilever Sustainable Living Plan e-module. In future we will embed sustainability into our core training for business functions.

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