A Study on Hindustan Unilevers:

Prepared by: Karan Radia Submitted to: Dr K S Prasad

(Faculty, GHPIBM)

Business Policy and Strategic Management

GH Patel PG Institute of Business Management
2016-2017

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PREFACE

As per the curriculum prescribed by the Sardar Patel University,

the students of management are required to prepare a report as a part of their
Business Policy & Strategic Management course. The objective behind
preparing this project report is to relate the management subject taught in the
classroom to their practical application and to get insight into practical situation.

The topic of the project Dove I have prepared this project

report on the basis if the information gathered from various sources which
include site visits, websites.

This project allowed us to acquaint with the effort and knowledge

necessary to business plan setting various components of organizational
strategies for effective, efficient and adaptive operations in dynamic business
environment.

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 ACKNOWLEDGEMENT

Studying Business Policy & Strategic Management between four walls of

classroom is surely an incomplete circle.

I would like to thank Dr. Y.C. Joshi (Director of Department) for providing me
an opportunity to undertake the project. I would like to thank Dr. K.S. Prasad
for providing valuable guidance throughout preparation of project. We are also
thankful to our friends and classmate for providing us Technical Knowledge
and support for my project.

Last but not least I would like to thanks everybody who has been associated
with my project at any stage but whose name does not find a place in this
acknowledgement.

Regards,
Karan Radia

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HINDUSTAN UNILEVER LIMITED
Introduction

Hindustan Unilever Limited (HUL) is India's largest Fast Moving

Consumer Goods Company with a heritage of over 80 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 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,
Lakm, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke
Bond, Bru, Knorr, Kissan, Kwality Walls and Pureit.

The Company has over 18,000 employees and has an annual turnover
of INR 31,425 crores (financial year 2015 16). 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 53.3 billion in 2015. Unilever has 67.2%
shareholding in HUL.

Vision

Unilever is a unique company, with a proud history and a bright future.

We have ambitious plans for sustainable growth and an intense sense of
social purpose.

Our Priorities and Principles

Unilever is committed to supporting sustainability and providing our

consumers around the world with the products they need to look good,
feel good and get more out of life.

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 Five key priorities provide the foundation for our brands campaigns.
Read some examples of how different brands are upholding these
principles.

A better future for children

Our oral care brands Signal and Close-Up encourage children to brush
their teeth day and night for optimal dental health. We also partner the
FDI World Dental Federation, supporting oral health programmes around
the world
Brands such as Omo and Persil have helped parents believe the
unconventional philosophy that Dirt is Good. Children learn through play,
and mud spatters and grass stains can easily be removed with effective
laundry products
Unilever also partners the World Food Programme and launched the
Together for Child Vitality initiative to bring our expertise in nutrition to
children in some of the worlds poorest countries.

A healthier future
Our Flora/Becel margarine brands have been scientifically proven to
help reduce cholesterol levels
Vaseline has launched the Vaseline Skin Care Foundation, providing
research into skin conditions and support for people affected by them
Lifebuoy soap has long had a presence in developing markets around
the world, and its campaign to promote handwashing with soap was
celebrated by 200 million people across 53 countries in 2013.

A more confident future

Doves Campaign for Real Beauty uses real women instead of models in
its advertising campaigns. The brand has also launched the Dove Self
Esteem Fund which educates and inspires millions of young women
Our Sunsilk hair care brand has partnered some of the worlds leading
hair specialists to co-create formulas tailored to treat conditions such as
hair-fall, frizz, limp locks and uncontrollable curls
Close-Up toothpaste provides an affordable oral care solution for
consumers in developing markets, allowing them to take care of their
dental health and closer with confidence.

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 A better future for the planet
Were aiming to grow our business while reducing our environmental
footprint and working across the supply chain for every brand to do so
Our Laundry brands, including Surf, Omo, Persil and Comfort, have
launched the Cleaner Planet Plan together, encouraging consumers to
change their laundry habits to reduce water and energy consumption
Our Lipton tea brand backs sustainable forest management projects in
Africa

A better future for farming and farmers

Many of our brands contain ethically and sustainably sourced
ingredients that are independently certified
Among these are Lipton tea, which is accredited by the Rainforest
Alliance, and Ben & Jerrys ice cream, which includes Fairtrade vanilla
and almonds in various flavours
Around half our raw materials come from agriculture and forestry, so
were working towards making our key crops 100% sustainable.

Purpose, values & principles

Our Corporate Purpose states that to succeed requires "the highest
standards of corporate behaviour towards everyone we work with, the
communities we touch, and the environment on which we have an
impact."

Always working with integrity

Conducting our operations with integrity and with respect for the many
people, organisations and environments our business touches has
always been at the heart of our corporate responsibility.

Positive impact
We aim to make a positive impact in many ways: through our brands,
our commercial operations and relationships, through voluntary
contributions, and through the various other ways in which we engage
with society.

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Continuous commitment
We're also committed to continuously improving the way we manage our
environmental impacts and are working towards our longer-term goal of
developing a sustainable business.

Setting out our aspirations

Our Corporate Purpose sets out our aspirations in running our business.
It's underpinned by our Code of Business Principles which describes the
operational standards that everyone at Unilever follows, wherever they
are in the world. The Code also supports our approach to governance
and corporate responsibility.

Working with others

We want to work with suppliers who have values similar to our own and
work to the same standards we do. Our Supplier Code, aligned to our
own Code of Business Principles, comprises eleven principles covering
business integrity and responsibilities relating to employees, consumers
and the environment.

Dove
Overview of the Brand

The Dove brand of personal care products currently includes everything

from shampoos to deodorants to facial washes. For the purposes of this
assignment, I will focus on advertisements for the Dove Beauty Bar, the
original product of Dove which has been around since 1957. The brand
has a strong focus on purity, moisture, cleanliness, natural beauty, and
touchable skin (Elani). The brand promises softness and improvement
of the skin and advertises confidence as the consumer benefit
(Dove.com).

Brand History

The Dove brand, founded by Lever Brothers, began in 1957. When the
brand first began, they sold beauty soap bars. They have since
expanded to produce a wide range of personal care products including
body wash, deodorants, body lotions, facial cleansers and shampoos

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and conditioners (Dove.com). Currently Doves commitment to
delivering real results is mirrored in [their] advertisements. For over 40
years, *theyve+ been using real women in *their+ ads (Dove.com), but
the brand has not always marketed itself in this way.

Evolution of DOVE

Dove TV Advertisements- 1950s

In 1957, the first advertisement for the Dove beauty bar ran, boasting its
1/4 Cleansing Cream. The comparative ad states that ordinary soaps
leave the skin feeling dry, but Dove creams your skin while you wash.
The ad encourages users to try an experiment themselves by cleansing
half of their face with ordinary soap and the other half with Dove soap to
notice the difference in how velvety and smooth their skin feels.

Dove Print Advertisements- 1960s

In the 1960s, Doves advertising also places a stronger emphasis on

pampering and targets itself more directly toward women. The
introduction of a new pink colored Dove bar with its heavenly new
fragrance brings about new advertising. This advertisement depicts a
woman taking a bubble bath with her hair tied in a pink bow, chatting on
a pink telephone, and holding up her pink Dove beauty bar. The
emphasis on Doves ability to cream the skin while you wash is brought
down to the fine print of the ad; The emphasis is no longer on the

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functionality and differentiation of the beauty bar. Instead, the
advertisement builds a brand personality of being a feminine and
indulgent product with which to pamper oneself. This femininity is made
clear through the use of pink throughout the ad and through the copy
darling, tickled pink, head over heels, heavenly.

Dove Print Advertisements- 1960s

Another 1960s advertisement also builds upon the brand personality as

being feminine and flirty. The majority of the ad is taken up by a soaped
up, bathing woman. Her body is in a relaxed and sexy position as she
playfully blows on the soap bubbles in her hand. This ad, much like the
previous, places the emphasis on Dove as a brand to use to feel like
the most pampered, the most spoiled, girliest girl in the world
(Saddleton).

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Dove Print Advertisements- 1970s

This 1972 print advertisement takes a new approach, asking What part
of you ages first? This copy-heavy ad discusses dryness as a factor
that makes skin look older and harsh soaps as being the culprit for dry
skin. The ad then asks the reader to try an experiment reminiscent of its
older ads: put your bar of soap away and wash daily for 4 weeks with
Dove. Throughout the ad, Dove is described as gentle as rainwater
and able to make skin softer, smoother, and younger-looking. This
advertisement uses the same side by side comparison technique as
used by Dove in past advertisements. This ad, however, is set up like an
article, offering scientific information as to why Dove is better and gentler
than soaps and why it will deliver better results. The emphasis on this ad
is anti-agingto moisturize skin as a way to keep it from looking
wrinkled and old.

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Dove TV Advertisements- 1980s

This 1985 Dove ad asks women across America to take the Dove 7 Day
Test by switching from their ordinary soap to Dove for seven days. In
this ad, Dove is described as being one thousand times better than
soap. The woman in the ad says Soap dried my skin out. Dove made it
feel soft and the ad concludes with the line, Dove makes you feel
prettier because it makes your face feel so soft and touchable. In this
ad, the emphasis is on Dove making you prettier due to its moisturizing
effects. This contrasts later ads from Doves campaign for Real Beauty
which focus on beauty as coming from the inside. However, the use of
challenges or tests for the viewer to try continues to be a running theme
throughout Doves advertisements.

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Dove TV Advertisements- 1990s

This 1991 advertisement shows a focus group in progress. Participants

conduct an experiment by using test strips to determine the harshness of
different soaps. It begins with a focus group participant saying I
consider myself an Ivory girl and after testing Ivory, saying Thats very
disappointing I dont want to be an Ivory girl anymore. I want to be a
Dove girl now. This advertisement uses the same comparison
technique as Dove used when they first began advertising. The ad is
believable because it is real women doing a real experiment and giving
their true, uncensored opinions.

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Dove TV Advertisements- 2000s

A 2006 Dove advertisement shows the evolution of a photograph of a

real woman after she has her hair and makeup done, lighting adjusted,
and after she is heavily photoshopped before her face is printed onto a
billboard. This advertisement is part of Doves Campaign for Real
Beauty. The tagline is No wonder our perception of beauty is distorted.
The ad functions as a way to show how unrealistic and unattainable
beauty is as depicted in magazines and on billboards.

Dove TV Advertisements- 2013

A brand new 2013 Dove ad shows camera-shy women hiding their faces
away from the camera in comparison to young girls eager to show their
faces. The ad asks, When did you stop thinking you were beautiful?
and encourages women to be your beautiful self. These types of
advertisements do not sell any particular Dove product but rather sell the
brand as one that cares about and supports womens issues like self-

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esteem and confidence. Doves active support of these issues gains
them a lot of respect as a brand. Their focus, seemingly, is on the
consumer, not on the products.

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MACRO ANALYSIS (PESTEL ANALYSIS)

A PESTEL analysis is a framework or tool used by marketers to analyze

and monitor the macro-environmental (external marketing environment)
factors that have an impact on an organization.

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POLITICAL FACTORS

This Environment is very important from companys point of view

because marketing decisions are strongly affected by development in
the political environment. It consists of law, government agencies and
individual in a given society. Any Political decision can affect market.
Some political factors which affected the Dove group,

Raw materials Agriculture Environmental Laws

Waste management
Import and Export laws etc
Testing cosmetics on animals

ECOMOMICAL FACTORS

The economical environment consists of factors that affect consumer

purchasing power and spending patterns. Market must pay close
attention to major trends and consumer spending patterns. Some factors
affected the group are as follow,

Excise Tax and Sales Tax

Domestic currency fluctuation etc
Economic recession makes customer switch brands

SOCIOCULTURAL FACTORS

Cultural factors strongly affect how people think and how they consume.
This environment is made up of institutions and other forces that affect
societys basic values, perception, preferences and behaviours. Some
factors are as follow,

Loyal customer base

Increasing population increasing market size
Pollution free working
Global trend Decline expected
The image of beauty among youth is distorted
Campaign to remove gender bias

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TECHNOLOGICAL FACTORS

Today technological advances are perhaps the most dramatic forces

affecting todays marketing strategies. Forces that are creating new
technologies are also creating new product and market opportunities.
Need to keep track and monitor the technology in order to keep up with
our competitors and monitor this will help us in avoiding and missing
new products and opportunities.

Modern equipments
Investment in RND
Safety measures

ENVIRONMENTAL FACTORS

Environmental factors refer to ecological and environmental aspects

such as weather, climate, and climate change. Climate change is a hot
topic these days and organizations are restructuring their operations
thus giving space to innovation and concept of Green Business.

LEGAL FACTORS

Legal embraces legislative and regulatory constraints or changes. For

Example, legal changes might include restriction on mergers and
acquisitions or new tax treatment of profit earned overseas. On other
hand, legal changes can provide opportunities, as for example the
Liberalization of Foreign investment in India. At one side customer
Safety also become important factors, recently Goderaj more focused on
customer and employee safety within the organizations.

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SWOT ANALYSIS

What makes SWOT particularly powerful is that, with a little thought, it

can help you uncover opportunities that you are well-placed to exploit.
And by understanding the weaknesses of your business, you can
manage and eliminate threats that would otherwise catch you unawares.

More than this, by looking at yourself and your competitors using the
SWOT framework, you can start to craft a strategy that helps you

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distinguish yourself from your competitors, so that you can compete
successfully in your market.

SWOT Analysis of Dove

Strength

Product:

Dove contains 1/4 moisturizing cream

Zero pH levels

Promotion:

Beauty should be for everyone

Strong social media presence

Free publicity and unconventional strategies and excellent drive for

advertisements

Wide range of loyal customers

Flagship product of HUL with strong brand awareness and appeal

through personal touch

Weaknesses

Price:

Highly priced for the Indian Market

Promotion:

Targets only the upper middle class women and it gives an idea of
not letting the ordinary women enjoy the touch of beauty

Critics objected the use of women as objects of their campaign

Low awareness in the Men body care product line

Opportunities

Product:

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 Can tap into the market developing beauty products for men

Continuous improvement is what Dove has been working on and

should carry on with it as well

Promotion:

Mens participation in the body care increase from 2011-12

The fashion world is becoming more resistant to using emaciated

models. Dove could collaborate with people in the fashion industry

Threats

Product:

Variety of products of the same category in the market; so tough

competition from Olay, Nutrogena & Nivea

Copy by the competitors(Olay total effects).

Promotion:

Not so popular in non-metro cities & the product is only for higher
and upper middle class group

June, 2005s firming campaign took even fat women in the ad, so it
might give it a slight aspect that is a brand of fat girls

The objectification of women and hence the risk of being rebuked

by hardcore feminists

Undermining the aspirational essence in itself is a big risk. Dove is

completely eliminating the reference group which kills the
aspirational element from the whole ad campaign

Sustainability of campaign in long run

Risk of exposure in social media

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 GE Model

General Electric Matrix (GE Matrix)

The general electric Matrix was developed by GE with the assistance of

the consulting firm McKinsey & Company. The model identifies the
market position and profitability of different business units based on their
market attractiveness and business unit strength. This is more advanced
form of Growth matrix model compared to BCG Matrix.

The main aims for GE Model

Analyze the current portfolio of business units and their position

compared to others
Develop growth strategies for each individual business units by
adding new products and businesses to the portfolio
Decide the business units to be sold or invested more to exploit
future opportunities
Here the two dimensions used are Market Attractiveness and
Business Unit Strength. The market attractiveness refers to the
attractiveness of the market or the industry in which the business
units operate.

Factors affecting the Market Attractiveness

Market Size
Market growth and growth potential
Market profitability
Competition
Market Predictability
New Opportunities
Macro environmental and economic factors
Business Unit Strength refers to the competitive position of each of
the business units. It specifies the strength, market share, market
position of the Business units.

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Factors affecting the Business Unit Strength

Assets and market under the Business Unit

Relative brand strength compared to others
Market share and growth in market share
Brand Loyalty
Distribution network and population reach
R&D, Patents and Innovations
More investment and access to capital

Based on these two dimensions, one 33 matrix is formed to be used as

a GE Model. The matrix is shown below with the respective strategic
decisions.

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It leads to four strategic decisions based on the outcome of this model.

Invest
Protect
Harvest
Divest

Invest

Investment is made in the market on the basis of the existing market

attractiveness in terms of growth. Also it is affected by the respective
market share of an organization.

Protect

Protect condition refers to the situation where a business doesnt want

fresh investment rather it is willing to have the security of the given
investment. So that it does not result in losses.

Harvest

Harvest refers to the situation where the business wants to generate

cash out of the given investment (i.e. it does not want stock
accumulation).

Divest

Divest refers to the condition where a business organization has finally

decided to sale an undertaking or a part of its undertaking. Divestment is
the last option which a business organization can undertake.

As per the GE model Dove well comes in first stage of Growth because
of the Dove still want fresh investment to grow in its verticals.

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Future scenario

The brand Dove has so far evolutionized from a mild soap to range of
cosmetics products in 2017. Dove has extended its product range in
most of the areas of self care. In the future it is set to focus on innovation
and research to enhance and improve its products and product range.

Dove was held to explore and assess the impact of current and future
franchise trends on businesses, investors, financial institutions,
technology, governments entrepreneurial drive, and at large on society,
besides honouring those who have done the best in the franchise sector.

So, its clear that the Dove interio has good future and growth for next
years.

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Reference

https://www.hul.co.in/

http://www.business-standard.com/article/management/dove-flies-
high-on-new-route-109101500017_1.html

http://www.adageindia.in/marketing/news/hindustan-unilever-
takes-on-itc-in-the-soap-market/articleshow/50250352.cms

http://economictimes.indiatimes.com/magazines/brand-
equity/doves-meteoric-rise-from-30-to-4-in-the-most-trusted-
brands-list-decoded/articleshow/49995248.cms

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