TEAM PROJECT ON

HINDUSTAN UNILEVER
LIMITED

Team 11
PGDM 2018-20
 TEAM MEMBERS

SR. no NAMES ROLL NO

1 SUDESHNA PAUL 41

2 MANSI PAWAR 42

3 MANDAR PEDNEKAR 43

4 DEVIKA PILLAI 44
EXECUTIVE SUMMARY

Hindustan Unilever Limited is the Indian arm of the Anglo-Dutch company –Unilever. Both
Unilever and HUL have established themselves well in the Fast Moving Consumer Goods
(FMCG) category. In India, the company offers many households brands like, Dove, Lifebuoy,
Lipton, Lux, Pepsodent, Ponds, Rexona, Sunsilk, Surf, Vaseline etc. Some of its efforts were
also rewarded when four of HUL brands found place in the ‘Top 10 brands’ list for the year
2008 published in The Economic Times.

Unilever was a result of the merger between the Dutch margarine company, Margarine Unie,
and the British soap-maker, Lever Brothers, way back in 1930. For 70 years, Unilever was the
undisputed market leader but now faces tough competition from Proctor & Gamble and
Colgate-Palmolive.

HUL is also known for its strong distribution network in India. In order to further strengthen
its distribution in the rural areas and to empower the local women, HUL launched a project
Shakti in 2000 in a district in Andhra Pradesh. The idea behind this project was to create women
entrepreneurs and provide them with micro-credit and training in enterprise management,
which would enable them to create self-help groups and become direct-to-home distributors of
HUL products. Today Shakti is present across 80,000 villages in 15 states and is helping many
underprivileged women earn their livelihood.

Hindustan unilever is an international company dealing in the daily used products all over the
world having good hold in the market. Hindustan unilever India is an Indian chapter of
Hindustan unilever, the company is holding about 62% share whereas the Government of
Peoples Republic of India has 38% share.

One of the most famous products of Hindustan unilever is LUX. They have divided lux based
on the geographical distribution. If they are been divided into more parts the division would be
in Socio Economic Cluster (SEC) which is responsible for accounting criteria of education and
profession which at last measures the financial status of consumers. They are divided in to
groups of five parts which starts from A to E. Hindustan unilever targets the sub urban and
urban middle class and upper middle class division of the population, which comes under A to
C of Socio Economic Cluster.
Then comes the tactical tools of marketing, 4p's, are used by many companies so as to sell LUX
in the market. All though LUX is produced in India, Hindustan unilever India is able to
maintain the standard all over the world. This product is available in the market in several
different sizes in three different fragrances. Though demand for the beauty soap market is to
great extent a normal computation market, the price difference makes the competition tougher
which then can lead ultimately fall of the market share of the company. Hindustan unilever
can't give a cheaper price in the market than it's the competitors of product. Since price is
affordable by most of the people. Hindustan unilever India has an outsourced channel of
distribution of the product through third party marketers which helps and gives them to
distribute and sell LUX at a large scale at an estimated amount up to ten million pieces. The
company also undertakes a promotional activity which is one of the largest in beauty soap
industries.

The beauty soap industry include less major manufactures of which Hindustan unilever holds
market share of less than 50%. Other brands like santoor, dove, rexona etc these competitors
have now started to get a large consumer base, but LUX features promotional and distribution
activities has already created loyalty for high brand which has made LUX as market leader
globally. Hindustan unilever, using promotional tool seriously so as to promote LUX, have
been resulted to which stand in the market from a longer time. Still other competitor's
manufacturers in the beauty soap industry are now creating a threat for Hindustan unilever's
market share as they are trying to move towards the rural areas which are populated. Thus,
Hindustan unilever India should take steps like moving towards the poor and/or rural division;
some examples like the company must attract children (introducing special product for kids)
and time to time innovate and follow new promotional activities to which stand the market
position.
 1. INTRODUCTION

Hindustan Unilever Limited (abbreviated to HUL), formerly Hindustan Lever Limited, is

INDIAs largest consumer products company and was formed in 1933 as Lever Brothers India
Limited. It is currently headquartered in Mumbai, India and its 41,000 employees are headed
by Harish Manwani, the non-executive chairman of the board. HUL is the market leader in
Indian products such as tea, soaps, detergents, as its products have become daily household
name in India. The Anglo-Dutch company Unilever owns a majority stake in Hindustan
Unilever Limited.

The company was renamed in late June 2007 as "Hindustan Unilever Limited".

Some of its brands include Kwality Wall's ice cream, Lifebuoy, Lux, Breeze, Liril, Rexona,
Hamam, Moti soaps, Pureit Water Purifier, Lipton tea, Brooke Bond tea, Bru Coffee, Pepsodent
and Close Up toothpaste and brushes, and Surf, Rin and Wheel laundry detergents, Kissan
squashes and jams, Annapurna salt and atta, Pond's talcs and creams, Vaseline lotions, Fair &
Lovely creams, Lakme beauty products, Clinic Plus, Clinic All Clear, Sunsilk and Dove
shampoos, Vim dish wash, Ala bleach and Domex disinfectant, Rexona, Modern Bread and
Axe deospray. HUL has produced many business leaders for corporate India. It is referred to
as a ‘CEO Factory' in the Indian press for the same reasons. It’s leadership building potential
was recognized when it was ranked 4th in the Hewiit Global Leadership Survey 2007 with only
GE, P&G and Nokia ranking ahead of HUL in the ability to produce leaders with such
regularity

Today, HUL is one of India’s largest exporters of branded Fast Moving Consumer Goods. It
has been recognized by the Government of India as a Golden Super Star Trading House.

Over time HUL has developed into a viable & competitive sourcing base for Unilever
worldwide in Home and Personal Care & Foods & Beverages category of products. HUL is
also a global marketing arm for select licensed Unilever brands and also works on building
categories with core country advantage such as branded basmati rice.

HUL Exports offers high level of service with flexibility and responsiveness thorough out the
supply chain. It has a dedicated organization structure to support this endeavour and this has
helped in growth of these businesses in particular. Intrinsic cost competitiveness in the end to
end Supply chain with appropriate technology and competitive capital investment operations
while delivering best in class quality enables HUL to position itself as a key sourcing hub for
Unilever and also become a preferred partner for Global customers in categories we operate.

HUL’s key focus in the exports business is on two broad categories. It is a sourcing base for
Unilever brands in Home & Personal Care (HPC) and Food and Beverages (F&B) for supplies
to other Unilever companies. It also focuses on becoming a preferred supplier to both non-
Unilever and Unilever clients in three categories in which India, as a country, has competitive
advantage – Branded Rice, Marine Products and Castor and its Derivatives. HUL enjoys
international recognition within Unilever and outside for its quality, reliability and speed of
customer service.

HUL's Exports geography comprises, at present, countries in Europe, Asia, Middle East,
Africa, Australia, and North America etc.

• HUL’s products touches two out of three Indian everyday

• Reach 80% Households
• Direct Coverage of 1mln outlets
• 2000 Suppliers and Associates
• 71 Manufacturing locations
• 15000 Employees
• 1100 managers
• Shelf availability 84% outlets in India

2. VISION STATEMENT

Unilever’s corporate vision is “to make sustainable living commonplace. We believe this is
the best long-term way for our business to grow.” This vision statement puts emphasis on
sustainability, especially among consumers. The following components are notable in
Unilever’s vision statement:

• Commonplace sustainable living

• Best long-term way
• Business growth
Commonplace sustainable living is a core component in Unilever’s corporate vision statement.
This component shows the company’s efforts in changing its products to suit current market
conditions. For example, through sustainable design for home care and personal care products,
Unilever helps consumers reach their goals to integrate sustainability in their lives. The
corporate vision also states that commonplace sustainability is the best long-term way for the
business. Unilever understands the importance of sustainability and other market trends
shaping the industry. Moreover, the vision statement reflects the company’s view of
sustainability as a way to maintain business growth. This vision statement aligns
with Unilever’s corporate social responsibility strategy to address business stakeholders in the
consumer goods industry.

3. MISSION STATEMENT

Unilever’s corporate 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.” This mission statement underscores how the company satisfies customers in
various aspects of their lives. The following are the significant components in Unilever’s
mission statement:

• Adding vitality to life

• Meeting everyday needs for nutrition, hygiene, and personal care
• Helping people feel good, look good, and get more out of life

Adding vitality to life is a general indicator of business strategy in Unilever’s corporate mission
statement. Such vitality is the value that consumers can expect from the company’s products.
The corporate mission also specifies the aspects of life where such vitality is added. For
example, Unilever’s food products address consumers’ vitality needs in terms of nutrition.
Furthermore, through these products, the company attracts customers who want to feel good,
look good, and get more out of life. The mission statement’s specification of the types of
products provides a foundation for the product mix in Unilever’s marketing mix.
 4. OBJECTIVE OF THE COMPANY

The corporate objective of HUL is “to meet the everyday needs of the people everywhere”.
This is met through an extensive distribution system that covers the diverse geographical
boundaries of the country.

5. STRATEGIES FOLLOWED BY HUL

Financial

Vision & Internal

Customers
Strategy Business

Learning &
Growth

With such a large number of household brands under each product categories whether it is
home care, food & refreshments, personal care and toiletries HUL are leading in the markets it
is present into which is helping the brand in achieving consistent, competitive and profitable
growth.

Operating in length and breadth of the country with large SKU’s (stock keeping unit) to serve
each and every segment of the society has helped the company to emerge as a biggest FMCG
player in India.
The variety of its products targets from premium customers to the customers of rural India. Its
aim is to cater the local customers. E.g. Hul have Dove Shampoo and soaps a product for the
premium customer and the products like lifebuoy and clinic plus for the lower end customers.
Demographic variables: essentially refer to personal statistics such as income, gender,
education, location (rural vs. urban, East vs. West), ethnicity, and family size. Hul has focused
on the customers of the urban India with the premium products life Dove, Lux, Surf excel etc
and at the same time a focused penetration can be seen in the rural market with economic
products. HUL has a strong distribution network which is the main tool to reach to its customer.
Even a small retailer in the rurals of India is having HUL product.

Restricted in two Division

• Food

• Home/Personal care products

Improvement in Portfolio Products

• 400 products selected

• Manufacturing reorganised in regional networks

• IT system reconfigured

Change in job management structure

• Reduction in managerial job classes

• Develop deep level expertise

Pioneer Strategies

• Building Market and Building brand

• Launch Brand when innovation pipeline is full

• To Deliver sustainable performance by looking long term

• Clarity of Strategies where HUL want to win

• Transformational Changes.

Management Strategies
 • Distinguishment of job classes
• Commitment to own professional development
• Global Exposure to managers
• Sound knowledge of Local market

Self Development

• Encompassed Career planning and progression

• Learning and Development
• Renumeration
• Reward System
• Competence dictionary
• Job Skill Profile

6. DETAILING SWOT ANALYSIS

Strengths in the SWOT analysis of Hindustan Unilever ( HUL )

1) 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 such as
soap, tea, detergents, shampoo etc. & each having large assortments, helped HUL in occupying
the large shelf space of Grocery /departmental stores which itself explains the
acceptance/demand of their products in the market.

2) Market leader in consumer goods: According to Nielsen data 2 out of three Indian
consumers use HUL products. HUL used selective targeting strategy to emerge as a market
leader in the Indian market.

3) Innovative FMCG Company: Hindustan Unilever Research center (HURC),Mumbai &

Unilever Research India, Bangalore ,both research facilities were bought together in a single
site in Bangalore in 2006.Employees in this facility continuously working & developing
innovations in products & manufacturing processes which is helping the HUL to set it as front-
runner in the consumer goods market.

4) Extensive & integrated distribution system: HUL’s brands are now household name
which is only possible due to its 4 tier distribution system namely

• a) Direct Coverage through common stockist within a town of population under 50000
people.
• b) Indirect coverage: Villages closer to larger urban markets have been targeted.
• c) Streamline: Leveraging the rural wholesale market to reach markets inaccessible by
road.
• d) Project SHATKI AMMA: It targeted the very small villages (2000 population) &
tapped into pre-existing women’s SHG (self-help groups). Markets have been segmented
based on their accessibility & business potential.

5) High Brand awareness: By signing popular celebrities for the advertisements of their
products HUL has created positive word of mouth over the ages which helped them in social
acceptance of their products intelligently targeted & meant for different income groups.

6) Product line: It offers product categories namely oral care, personal care, household surface,
fabric care and pet nutrition etc. having deep assortments across the product categories.

7) Financial position: Having more than 80 years of experience in the consumer goods market
& backed by Unilever who owns 67% controlling share in HUL, It is financially strong.

8) Market share: Through high penetration in the market, HUL had managed to hold their
high market share in different product categories.

9) Share of Wallet: Whether one buys surf /wheel /Rin detergent it will go to HUL’s
pockets. HUL strategy to offer different products for different income groups (selective
targeting) has been successful in having share of wallet of a consumer)

Weaknesses in the SWOT analysis of Hindustan Unilever ( HUL )

1) Decreasing Market share: Competitors focusing on a particular product & eating up
HUL’s share, like Ghadi & Nirma detergent eating up HUL’s wheel detergent market share.

2) 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 in the SWOT analysis of Hindustan Unilever ( HUL )

1) Expanding market: By penetrating more in the rural markets through its project Shakti
AMMA and transition of unorganized business to organized one will lead to further expansion
of the consumer goods market.

2) 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 ,is resulting in
increase in usage rate of the these products.

3) Increasing Income levels: Due to stable political scenario, improved literacy rate &
controlled inflation, disposable income of the people is increasing thereby resulting into
upsurge in demand & changing their lifestyle.

Threats in the SWOT analysis of Hindustan Unilever ( HUL )

1) Competition in the market: With increasing number of local & 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.

2) 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 & brand switching.

3) Buyers power: With highly diversified consumer goods market where there are lots of
brands claiming different sorts of benefits, it’s very difficult for consumers to stick to a
particular brand & hence results into brand switching where consumer got power to select a
brand based on several factors like availability, reference group recommendation, preference
& price.
7. PESTEL ANALYSIS

POLITICAL ENVIRONMENT

• Political environment played a vital role in the growth of HUL. Under the
implementation by Indian national congress , the liberalisation of the Indian economy
started in 1991, it 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, 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 Unilever 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.
• Likewise HUL emerged with many companies to widen its products. It emerged with
Kimberly Clark Corporation in 1994, Kimberly Clark Lever Ltd, which markets
Huggies diapers and Kotex Sanitary Pads.
• In 1993, it acquired the Kissan business from the UB Group and the Dollops Icecream
business from Cadbury India. The internal restructuring culminated in the merger of
Pond’s (India) Limited (PIL) with HUL in 1998. So, this was only possible by the
governments liberal policies towards the industry.
• In January 2000, in a historic step, the government decided to award 74 per cent equity
in Modern Foods to HUL, thereby beginning the divestment of government equity in
public sector undertakings (PSU) to private sector partners. HUL’s entry into Bread is
a strategic extension of the company’s wheat business. In 2002, HUL acquired the
government’s remaining stake in Modern Foods.

The first element of a PESTEL analysis is a study of political factors. Political factors influence
organisations in many ways. Political factors can create advantages and opportunities for
organisations. Conversely they can place obligations and duties on organisations. Political
factors include the following types of instrument:
– Legislation such as the minimum wage or anti-discrimination laws.

– Voluntary codes and practices

– Market regulations

– Trade agreements, tariffs or restrictions

– Tax levies and tax breaks

– Type of government regime eg communist, democratic, dictatorship

Non-conformance with legislative obligations can lead to sanctions such as fines, adverse
publicity and imprisonment. Ineffective voluntary codes and practices will often lead to
governments introducing legislation to regulate the activities covered by the codes and
practices.

SOCIAL ENVIRONMENT

• HUL has gained a large amount of consumers through its social programs. HUL
believes that an organization’s worth is also in the service it renders to the community.
HUL focused on hygiene, nutrition, enhancement of livelihoods, reduction of
greenhouse gases and water footprint.
• It is also involved in education and rehabilitation of special or underprivileged children,
care for the destitute and HIV-positive, and rural development. HUL has also responded
in case of national calamities/adversities and contributes through various welfare
measures, most recent being the relief and rehabilitation of the people affected by the
Tsunami disaster, in India.
• HUL’s Project Shakti is a rural initiative that targets small villages populated by less
than 2000 individuals. Through Shakti, HUL is creating micro-enterprise opportunities
for rural women, thereby improving their livelihood and the standard of living in rural
communities. Shakti also provides health and hygiene education through the Shakti
Vani programme.
• The program now covers 15 states in India and has over 45,000 women entrepreneurs
in its fold, reaching out to 100,000 villages and directly reaching 150 million rural
consumers.
 • HUL also runs a rural health programme, Lifebuoy Swasthya Chetana. The programme
endeavours to induce adoption of hygienic practices among rural Indians and aims to
bring down the incidence of diarrhoea. It has already touched 120 million people in
approximately 50, 676 villages across India.

ECONOMIC ENVIRONMENT

• Economic environment has not always been favourable for the company’s possession,
sometimes it has been against it also.
• In the beginning of the year 2009 Hindustan Unilever (HUL) has reported a 20% rise
in profit after tax before exceptional items at Rs 457 crore in the January-March quarter
of 2009, on a 6% growth in net sales which stood at Rs 3,988 crore. It was at the time
when there was economic crisis in the country.
• There was 2.7% drop in net profit to Rs543.19 crore for the June quarter, as the
company spent more on advertising and promotions to spur sales during the economic
downturn. Net sales grew by 7.77% to Rs4, 475.68 crore from the corresponding period
of last year.
• HUL boost its sale after the 1991 liberalization towards the emergings and divestments.
HUL innovated many products during this period. It has been described in political
environment also.

TECHNOLOGICAL ENVIRONMENT

• HLL has been pepping up its rural distribution systems and has launched low unit price
variants of its popular brands to drawing new users in the rural area.
• Technology infrastructure such as the internet and other information exchange systems
including telephone
• Technology systems incorporating a multitude of software which help them manage
their business.
• Technology hardware such as mobile phones, Blackberrys, laptops, desktops,
Bluetooth devices, photocopiers and fax machines which transmit and record
information.
Technology has created a society which expects instant results. This technological revolution
has increased the rate at which information is exchanged between stakeholders. A faster
exchange of information benefited businesses as they were able to react quickly to changes
within their operating environment. However an ability to react quickly also creates extra
pressure as businesses are expected to deliver on their promises within ever decreasing
timescales. Consumers can now shop 24 hours a day from their homes, work, and Internet
café’s and via 3G phones and 3G cards. Some employees have instant access to e-mails through
Blackberrys but this can be a double edged sword, as studies have shown that this access can
cause work to encroach on their personal time outside work.

ENVIRONMENTAL FACTORS

Corporate Social Responsibilities Culture – Hul’s present CSR efforts applicable in the new
market needs to have new initiative to cater to the prospective market.

Influence and Effectiveness of Environmental Agencies – The role of environment standards

enforcement agencies is critical in safeguarding norms. But often in emerging countries these
agencies delay the process as a tactic to extract bribes.

Influence of Climate Change – Climate change will impact Hul business model and supply
chain. For example if the supply chain is not flexible it can lead to bottlenecks if shipments
from one part of the world are delayed because of sudden climate shift.

Focus & Spending on Renewable Technologies – The budget is spent on renewable energy
sources and Hul can make this investment as part of its competitive strategy.

Waste Management – The policy of waste management in the prospective market and Hul
can adhere to the waste management requirements in that market.

Environmental Regulation Impacting Absolute Cost Advantage Dynamics in the Industry.

Per Capita and National Carbon Emission – Analyzing the per capita carbon emission. This
will help in better predicting the environment policy of the country.

LEGAL FACTORS
Legal factors often govern – conditions to enter the market, laws to operate in the market, and
procedure to resolve any dispute with other stakeholders. If the legal system is not strong then
Hul can face numerous challenges – from consumer petitions to shakedowns from authorities.
Consumer Protection Laws – Hul needs to know what are the consumer laws, what is the rate
of enforcement, what is the attitude of authorities towards consumer protection laws, and
what is the role activist groups in enforcement of consumer protection laws.
Time Taken for Court Proceedings – Even if the country has best of the laws, it doesn’t mean
much if they can’t be enforced in a timely manner. Hul should do a primary research
regarding how much time it often takes to conclude a court case in the country given the sort
of legal challenges Hul can face.

Data Protection Laws – Hul needs to assess what are the data laws in the country and what it
needs to do to comply with them. For example most of EU countries now want the EU citizen
data to be saved in EU countries only.

Intellectual Property Rights Protection – Hul should assess the level of protection that
intellectual property rights get under the legal system of the country.

Business Laws – Before entering into new market – Hul has to assess what are the business
laws and how they are different from home market.

Transparency in Judiciary System & Processes – Transparency is essential for fair and
consistent decision making. If the process is consistent and transparent then Hul can plan
ahead with greater conviction.

Securities Law – The securities law in the country has to be thoroughly studied and the
conditions to list the company on national or regional stock exchange.

SWOT Analysis

STRENGTH THREATS
Variety of products From High Class Competitor
Distribution Network Proctor & Gamble
Brand image Pantene
Quality Management Dabur
Innovation and R&D strength Babool
Dabourlal Dent Manjan
Reckitt Benckiser
Dettol
Palmolive
Colgate, Nirma

OPPORTUNITIES WEAKNESS
Huge Market
Increasing per capital income Not able to compete with local competitor in
Increasing consumption pattern the rural market
Potential for making more impact of brand Not focus on upper class population
image Pricing policy is not good
Coming in technology e.g. in water purifiers

8. COMPETITIVE PROFILE MATRIX

WEIGHT RATING W RATING W RATING W

(HUL) (HUL) SCORE (NESTLE) SCORE (P&G) SCORE
(HUL) (NESTLE) (P&G)
QUALITY 0.2 3 0.6 2.5 0.5 3.5 0.7
PRODUCTS

ATTRACTIVE 0.2 4 0.8 4 0.8 3 0.6

PRICES
BRAND 0.1 3 0.3 4 0.4 3.5 0.35
EQUITY

DISTRIBUTION 0.1 4 0.4 4 0.4 4 0.4

CHANNELS

R&D 0.2 2 0.4 4 0.8 3 0.6

EMERGING 0.2 4 0.8 3.5 O.7 3 0.6

MARKET
PENETRATION

TOTAL 1.00 3.3 3.6 3.25

 9. EXTERNAL FACTOR EVALUATION

Opportunities Weight Rating Wt.Score

1. The diversity of Unilever’s competitor is 0.06 2 0.12
low
2. Unilever Indonesia goes into 2014 on the back of market share 0.10 3 0.30
gains and robust growth in almost all categories

3. Keeping with product innovation based on consumer 0.08 3 0.24

expectation

4. The high customer satisfaction can be seen from the title 0.13 4 0.52
of prime index of consumer satisfaction

5. Since 1982, PT. Unilever Indonesia, Tbk has been listed on the 0.12 4 0.48
Indonesia Stock Exchange

WEIGH T WT.SC
THREATS RATING ORE

6. Substitute products in the market 0.15 4 0.60

The company sells its products through a network of
7. about 370 independent distributors covering outlets 0.06 3 0.18
throughout Indonesia

In the second half of the year, the Indonesian macro

8. economy experienced another test with high inflation 0.10 3 0.30
(post fuel subsidy cut), increased interest rate and
weakening of the Rupiah

Government laws and regulation quite challenging

9. 0.12 3 0.36

10. Many smuggling of product from 0.08 3 0.24

Cina

Total 1.00 3.34

 10. INTERNAL STRENGTH AND WEAKNESSES
STRENGHTS:
• R&D and market strategies.
• Strong distribution network.
• Efficient man power.
• Strong Distribution network.
• Experience top management.
• Supply chsin management.

WEAKNESSES:
• Continuously losing its market share because of other FMCG products.
• Inability to transform its strategies at right time.
• Sometimes having broad brand portfolio can lead to confuse positioning.
• High operating expenses.
• High cost of production.

LONG- TERM OBJECTIVES

Sourcing 100 percent of agricultural raw materials sustainably by 2015, including 100
percent sustainable palm oil. Unilever buys 3 percent of the world's annual supply of
palm oil.

Change the hygiene habits of 1 billion people in Asia, Africa and Latin America to help
reduce diarrhea -- the word's second biggest cause of infant mortality. Unilever will push
sales of its Lifebuoy soap brandand teach consumers when to wash their hands to achieve this
aim.

Make drinking water safer in developing countries by extending sales of its Pureit home
water purifier.

Improve standards of living by working with agencies such as Oxfam and the Rainforest
Alliance to link 500,000 smallholders and small-scale distributors to the Unilever supply
chain.

Unilever also intends to improve the nutritional quality of its food products -- with cuts in
salt, saturated fats, sugar and calories -- and link more than 500,000 smallholder farmers
and small scaledistributors in developing countries to its supply chain

Earlier this year, Unilever announced a plan to use 100 percent sustainably sourced paper
for packaging by 2020, and the company has ranked at the top of its sector for sustainability
in separate rankings developed by Two Tomorrows and Climate Counts.
VARIOUS STRATEGIES THAT HAS BEEN IMPLEMENTED

Winning with brand and innovation is about development on new product, such as hair
product, male grooming product, home and personal product and also food and beverages.

Winning with market place. Unilever Indonesia promoting their goods by selling
directly to the public with evidence of quality in real condition. Besides that, Unilever
Indonesia also boost the volume growth in the islands outside Java.

Winning with continuous improvement. Unilever Indonesia supports the plan Program
Master Plan for the Acceleration and Expansion of Indonesian Economic Development
(MP3I) with pioneering oleochemichal plant in Seimangkei, North Sumatra. The project
will run in the period 2013-2014, with an investment of Rp 1.45 trillion.

Winning with people. Unilever focuses in perfecting management trainee program (MT)
is strong because Employees (people) is the most important element in business continuity
Unilever.
 11. INTERNAL FACTOR EVALUATION

Strengths Weigh Ratin Weighted

t g Score
Contribution of home and personal care to net sales is
1. 72.9% 0.12 4 0.48

2. Marketing and selling expenses 0.08 2 0.16

increased by 12.5% to Rp6.6 trillion
Strong portfolio of brands and diversified
3. product range 0.09 3 0.27
Contribution to Total Turnover is 27% in 2013
4. 0.08 3 0.24
Holding 15% shares of total in Indonesian
5. Stock Exchange 0.11 4 0.44
Cash position in 2013 increased by 13.7%
6. or Rp31.5 billion 0.09 4 0.36

Weaknesses Weight Rating Weighted

Score
1. Finance income decreased by 61.5% to Rp14.5 billion 0.11 4 0.44

2. Sales growth for the year was 12.7%, lower than previous 0.05 2 0.10
year growth of
16.3%
3. The Company’s collection period 0.06 3 0.18
weakened from 30 days in 2012 to
33 days in 2013
4. No direct connecting with customer 0.08 4 0.32
5. Excellent in R&D lead to high in 0.06 3 0.18
price
6. Employ 6,719 employees in 2013 0.07 2 0.14
Total 1.00 3.31
 12. LONG-TERM OBJECTIVES

The company has set itself three main goals to achieve by 2020: to help one billion people
improve their health and wellbeing; to improve the livelihoods of hundreds of thousands of
people in the supply chain; and to halve the environmental footprint of the group's products.

The plan is the result of 10 years of work by Unilever to find a long-term path to sustainable
growth. In 2009 it set out a vision to double in size, while reducing the company's
environmental impact.

The sustainable living plan, produced a year later, is the way that goal will be achieved.

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It includes 50 social, economic and environmental targets covered by the three main objectives
– health and wellbeing, the environment and enhanced livelihoods.

Each of the company's brands is responsible for achieving sustainability targets and the
Unilever executive team is measured on its success in achieving the overall plan.

The initiative has an impressive sweep, taking in the company's entire value chain from
suppliers to consumers.

Among the targets Unilever has set itself is a plan to source 100% of agricultural raw materials
from sustainable sources.

It also wants to link together some 500,000 smallholder farmers and small-scale distributors in
the supply chain, to improve hygiene for a billion people in Asia, Africa and Latin America by
promoting handwashing, and to double the proportion of food products achieving the highest
nutritional standards.

During 2010, Unilever undertook work to understand the impact it was having. Some 1,600
products – representing about 70% of sales – were assessed, a new agricultural code was put
in place, and 250 factories reviewed to find the best ways to reduce waste, water and energy
use.
By the end of the year several impressive results had been achieved. About 125 million people
had been reached by the handwashing campaign, Unilever's in-home water purifier was giving
15 million people in India access to affordable clean drinking water, and Some 10% of
agricultural products were being sourced sustainably.

Sourcing 100 percent of agricultural raw materials sustainably by 2015, including 100
percent sustainable palm oil. Unilever buys 3 percent of the world's annual supply of
palm oil.

Change the hygiene habits of 1 billion people in Asia, Africa and Latin America to help reduce
diarrhea -- the word's second biggest cause of infant mortality. Unilever will push sales of its
Lifebuoy soap brandand teach consumers when to wash their hands to achieve this aim.

Make drinking water safer in developing countries by extending sales of its Pureit home water
purifier.

Improve standards of living by working with agencies such as Oxfam and the Rainforest
Alliance to link 500,000 smallholders and small-scale distributors to the Unilever supply
chain.

Unilever also intends to improve the nutritional quality of its food products -- with cuts in
salt, saturated fats, sugar and calories -- and link more than 500,000 smallholder farmers and
small scaledistributors in developing countries to its supply chain

Earlier this year, Unilever announced a plan to use 100 percent sustainably sourced paper for
packaging by 2020, and the company has ranked at the top of its sector for sustainability in
separate rankings developed by Two Tomorrows and Climate Counts.
 13. SWOT MATRIX

SO Strategy

Strength: Contribution of home and personal care to net sales is 72.9%.

Opportunity: Unilever Indonesia goes into 2014 on the back of market share gains and robust
growth in almost all categories.

Strategy : Develop more distribution channels.

WO Strategy
Weakness : No direct connecting with customer.
Opportunity: Unilever Indonesia goes into 2014 on the back of market share gains and robust
growth in almost all categories.

Strategy :

1. Increase the marketing to get close with the customer in introducing the products.

2. Improve the customer care service to know customer’s needs and wants.

ST Strategy

Strength : Contribution of home and personal care to net sales is 72.9%.

Threat : Substitute products in the market.

Strategy : Improve R & D to take competitive advantage according to

product diversification.
WT Strategy

Weakness : Sales growth for the year was 12.7%, lower than previous year growth of 16.3%.

Threat : The company sells its products through a network of about 370 independent
distributors covering outlets throughout Indonesia.

Strategy: Pursue vertical integration by owning subsidiary that engage in distribution, export,
and import.
 14. SPACE MATRIX

FINANCIAL STRENGTH RATING AVERAGE

Net profit (net income) increased by 12.7% to 30,757,435 million 5
dollars
Net cash flow from operating activities in 2013 was 4
Rp6,241,679million, up from Rp5,191,646 million years ago.

Working Capital which began to decline from year to 2

year
EPS increased from 546 to 634 at December 31, 2013 5
TOTAL 16 4

INDUSTRY POSITION RATING AVERAGE

Community needs and high dependence on consumer goods 4

Increased sales of consumer goods in Indonesia is rated third, 4

after China and India

Market growth products daily necessities pretty good 4

Household goods industry and consumer goods is one 5
industry will still prevail in times of crisis
17 4,25

STABILITY POSITION RATING AVERAGE

Macroeconomic stability was maintained as indicated by the -2
decline in interest rates and inflation (although there will be a
bit of turmoil)

The issue of the use of formaldehyde in several -4

industries including consumer goods in industry

The decline in average income community (the -3

possibility of a global crisis)
-9 -3
15. BCG MATRIX OF HUL
 16. GRAND STRATEGY MATRIX OF HUL

The grand strategy matrix helps us to determine the strategy that the firm must pursue, based
on its competitive position and market growth. HUL lies in quarter 1 which represents
excellent strategic position of a company. Continued concentration of current market and
products is an appropriate strategy.

HUL has abundant resources, so backward, forward and horizontal integration may also
prove effective.
CONCLUSION

HUL being India’s largest FMCG Company with 35 brands and 20 distinct categories is
doing very well, company is also very focused on mission statement and vision statement
and working accordingly, the financial statement of the company is also good and there is
always increment in turnover of the company. The board of directors, the management the
core managers everybody is responsible and is loyal to the company, the main reason of
company’s success is it is maintain its quality, coming with new products, making
innovations in the product, maintaining its price and the most important thing which is
taking HUL towards continuous success is the strong distribution channel and the intensive
and extensive selling strategy. The company has more than 30000 people in distribution
channel which give the company a competitive edge , and each year in annual report the
company makes a strategy and work according to the strategic focus .

Recommendations to the company

The company should maintain its quality.
The company should focus on more herbal products
The company should always keep an eye on competitors
As the competition in FMCG sector is becoming intense it’s very necessary to
keep a track on it.
The company should always survey about the likeness of the product of the
company which will give the company the extra edge.
Company should always focus on taste and preference of the consumers
The company should do more CSR activities which will help in good word of
mouth for the company.
The company should give advertisement in newspapers and other media weekly.
REFERENCES

1. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2124042
2. SubhashishMondal/strategic-business-management-project-report-on-hul
3. https://embapro.com/frontpage/pestelcase/12844-mobile-hul
4. https://www.kobo.com/in/en/ebook/hul
5. http://www.managementparadise.com/knt.nallasamygounder/documents/6338/hindust
an-unilever-company-analysis/
6. http://www.yourarticlelibrary.com/project-reports/hul/project-report-on-hindustan-
unilever-limited-hul/84273