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Company review on
Presented byA.Aravind Sai Prasad (20089)D. Ganesh (20098)A.Veda(20095)
J. Sasidhar (20077)
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INTRODUCTION
In 1931, Unilever set up its first Indiansubsidiary, Hindustan VanaspatiManufacturing Company, followed by LeverBrothers India Limited (1933) and United
Traders Limited (1935). These three
companies merged to form HUL in November1956.
Hindustan Unilever Limited (HUL) is India'slargest Fast Moving Consumer Goods
Company with a heritage of over 75 years inIndia and touches the lives of two out ofthree Indians.
With over 35 brands spanning 20 distinct
categories such as soaps, detergents,
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VIS
ION OF THECOMPANY
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74.
3%
CONTRIBUTION TODIFFERENT SECTORS
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PERSONAL CARE
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TOILET SOAPS BY
HUL
HUL is the market leader
in the soap segment inIndia
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Competitors of HUL SOAPS
Lux
Rexona
Breeze
Lifebuoy
Santoor, Chandrika
Cinthol, MysoreSandal
Godrej no. 1, Nirma
Dettol
HUL brandsCompetitorsbrands
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Competitors of HUL SOAPS
Pears
DoveHamam
Liril
Santoor, Savlon
Camay
Margo
Cinthol
HUL brandsCompetitors brands
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The HUL Hair Care
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Competitors of HUL Hair Care
Sunsilk
Clinic Plus
Dove
Pantene
Head &Shoulders
LOreal, Garnier
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segment Of
HUL Oral Care
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Competitors of HUL Oral Care
Pepsodent
Close Up
Colgate
Meswak
Dabur Red
Anchor
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HUL COSMETICS
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Competitors of
Revlon, Maybelline, LOreal
Competitors of
Nivea, Charmise
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HUL FOOD BRANDS
TEA Brooke Bond Lipton
COFFEE Brooke Bond Bru
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FOOD Kissan Annapurna Knorr
ICE CREAM Kwality Walls
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HUL LAUNDRY CARE
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COMPETITORS
SURF EXCEL: ARIEL
WHEEL: NIRMA
RIN:TIDE
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Other products
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MARKETING
STRATEGIES OFHUL
STRA
TEGIE
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MARKETING STRATEGIES OFHUL 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, franchisee to reacheveryone e.g. Aviance, Ayush.
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For long term benefits, HUL started ProjectStreamline in 1997.
MARKETING STRATEGIES OFHUL FOR RURAL INDIA
Project Shakti, partnership withSelf help groups of Rural women &covers 5000 villages in 52 districts
in different states.
Appointed 6000 Sub-stockists that
directly covers about 50,000 villages &250 million customers.
Integrate Economic, Environment & Socialobjectives with Business agenda.
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Promotion Strategy
This strategy wasused at village tovillage basis.
The first step was the usage ofaudio- visual publicity vans. This
publicity vans were covered bybeautiful banners, this bannerswere embossed with the productphotos.
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vThe promotion strategy is to do
door to door marketing, & This iswell designed, To do door- to-door marketing the marketer
employed the young local youthswho can communicate with ruralpeople in the local language.
The formal media used tocommunicate the product was
T.V, radio ,cinema ,printproportionately depending upon
their reach and their influence
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v
The games used were:
v Spotting the right price.
v Match the pairs.
v Turn the wheel.
This games were used to entice the people and pullthem to Colony the small place between thehouses so as to do mass marketing as much aspossible.
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THEIR MARKETING
STRATEGY Low price competitive product Try to cover all section of consumer
available in the market.
Focus more on Sub urban marketing Focus area home care , personal
care , Food.
They promote the Brand name up tothat level ,that the product is recognizeby its brand name . Example Vim ,Lakme , Lux.
Price of commodity may always stay in
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Continued..
HUL observed India very closely , theiris a ring of truth to its vision statement toearn love & respect of Indian by making
a real difference to every Indians.Indians have close connection withbrands like hamam , lifebuoy , daldaetc.
Rural marketing
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Major challenges
Inflation reducing profit
Consumer behavior
Competition in core strategyGlobal exposure
Help to improve health n nutrition
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Segmentation
HUL is the largest FMCG company. HULsproducts are now in 2 hands out of 3hands of India.
The customer of HUL products is everyone. Starting with child, youth to old ageas well.
Women are fond of the product of HUL. Allproduct are available for womens needs& desires
So, HUL is targeting as a whole for its
product.
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Distribution system
HUL's products, are distributed through anetwork of about 7,000 redistributionstockists covering about one million retail
outlets. The general trade comprises grocery
stores, chemists, wholesale, kiosks andgeneral stores.
Company provides tailor made services toeach of its channel partners.
HUL is using the point of purchase
method for much higher level of direct
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Market share
Market Shares of Soap 60%.
Market Shares of Food Brands 70%.
Market Shares of Oral Products 36%.
Market Shares of Household Cares 62%.
Market Shares of Personal wash 60%.
Market Shares of Skin Care 53%.
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SWOT AnalysisStrengths:
Strong brand portfolio, price quantity & variety.Innovative Aspects.
Presence ofEstablished distribution networks in both
urban and rural areas.
Solid Base of the company.
Corporate Social Responsibility(CSR)Weaknesses:"Me-too" products which illegally mimic the labels andbrands of the established brands.Strong Competitors & availability ofsubstitute products.Low exports levels.High price of some products.High Advertising Costs.
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Opportunities:
Large domestic market over a billion populations .
Untapped rural market.
Changing Lifestyles & Rising income levels, i.e. increasing per capitincome of consumers.
Export potential and tax & duty benefits for setting exports units.
Threats:
Tax and regulatory structure.
Mimic of brandsRemoval of import restrictions resulting in replacing of domesticbrands.
Temporary Slowdown in Economy can have an impact on FMCG
Industry.
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Competitors of hul
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Edge over Competitors
Unilever, in its worldwide operations, strives to bea multi local multi national. Working since 1912.
Reflected national priorities over the years andremained committed towards India.
Large market capitalization and Product Variety.
Good Company policies such as :-
Developing and using relevanttechnology
Generating productive employment
Stimulating industrialization and
dispersing its benefits.
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HUL Financials
Categories of Shareholders as on 31st March 2012
% of Holdings
Top 10 Shareholders as on 31st
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Top 10 Shareholders as on 31stMarch, 2012 (Other thanpromoters)
1.Life Insurance Corporation of India2. Oppenheimer Developing Markets Fund
3. The New India Assurance Company Limited
4. Bajaj Allianz Life Insurance Company Limited
5. Aberdeen International India OpportunitiesFund (Mauritius) Limited
6. Aberdeen Global - Emerging Markets EquityFund
7. Vanguard Emerging Markets Stock Index Fund
8. General Insurance Corporation of India
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Year on year Hindustan Unilever Ltd grewrevenues 16.86% from Rs. 20,278 crores to
23,696 crores
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Net income improved 21.54% fromRs.2296 crores to 2,791 crores.
Year on year, both dividends per share and earnings per share
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Year on year, both dividends per share and earnings per shareexcluding extraordinary items growth increased 15.38% and22.75%, respectively. The positive trend in dividend paymentsis noteworthy since only some companies in the Personal &Household Prods. industry pay a dividend
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0
2
4
6
8
10
12
HUL Share
Fiscal Year ending march 31
Rs
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0
2
4
6
8
10
12
Return On Capital Employed(%)
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Summary
For the yearending March
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EMPLOYEE STOCK OPTION PLAN(ESOP)
The 2006 HLL Performance Share Scheme wasintroduced as a measure to reward and motivate
employees as also to attract the talent and retain thekey employees.
On a review of the operating experience of thesaid scheme and bearing in mind the charges in theglobal trends on management rewards, it is proposedto revise the approach of award of share optionsunder the scheme by adopting a revised 2012 HUL
Performance Share Scheme.
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CODE OF BUSINESS PRINCIPLES
People, integrity, and values have always been central to HUL
three basic principles
Formation of trust and respect
Building mutually beneficial relationships
Engaging in responsible management practices
1DIVERSITY
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HUL is committed to managing diversity in their working environment .
It aggressively pursue the target of increasing the proportion of women in
the management cadres (18%)
It has a number of gender friendly policies such as maternity benefit ,career break ,
flexi working ,agile working from remote location
HULs formal employment and fitment policy absolutely prohibits gender based
discrimination
It is a merit driven organization and this is reflected in the policies concerning
recruitment ,training and promotion which ensure that the best person gets the job
,independent of subjective considerations
CHILD LABOUR
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CHILD LABOUR
HULs recruitment policy doesn't permit engagement of child labor
directly or indirectly. Regular audits ensure compliance at their own sites
and at third party locations/sites.
FORCED OR COMPULSORY LABOUR
The Employee Relations Policy and business principles adopted by the
company prohibit such practices and this is upheld in letter and spirit
TEAMWORK AND LEADERSHIP
Teamwork is everyone's focus
Leadership is everyone's responsibility
1
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EMPLOYEE ENGAGEMENT
HUL maintain good communication channels with employees through
company based information and consultation procedures.
HUL have several processes instituted to ensure a two-way communication
channel.
In 2009, they began an employee engagement programme to ensure that
employees are involved in Unilever's vision and plans for the future
YOUNG MANAGERS LUNCH WITH CEO
GLOBAL PEOPLE SURVEY
UR SAY
HAMARA
1
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PERFORMANCE MANAGEMENT
Individual progress is important. That's why they invest a lot of time & effort
in supporting employees to perform well & in building their capabilities.
Every person gets a performance and capability card. This is an e-card, which they
can download it, which tells them everything they need to know, how they are
rated, whether they are a lister' (a company phrase for fast-track leaders), which
box of the matrix they are in, what is their potential, what is their likely next job,
what does the company think about your potential, what is the kind of development
plan that they have So every person has clarity, where he or she stands. This is
shared transparently.
1REWARDS AND BENEFITS
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REWARDS AND BENEFITS
HULs reward philosophy is to provide market competitive salary and benefits
with a strong linkage between performance and pay. Accordingly, their overall
reward package includes
- Fixed Salary that is competitive with peer companies
- Variable Salary that is linked to company and individual performance
- Equity compensation (at eligible levels) that is linked to long term (3 year)
company performance and individuals potential.
- Benefits and Perquisites aimed at providing choices.
- Retirement benefits that are market competitive.
1
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FACILITIES FOR FULL-TIME EMPLOYEES
basic access to above-minimum wages,
subsidized canteen facility,
safety training and equipment,
safe infrastructure and washroom facilities irrespective of contractual status.
Certain benefits extended as a result of collective bargaining agreements are
available only to those groups of workmen covered by the agreements
1
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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
Personality development
HUL is a business where talented individuals can go as far & as fast as their
ambition & ability take them.
1
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GROOM YOUNG TALENT
The BLT program is an extremely comprehensive training module, designed to
groom young talent for taking up challenging roles ahead. They get in-depth
functional as well as cross-functional exposure through various stints, travel
through the length and breadth of the country and outside, understand company
values and ways of working while they undertake live projects in each stint.
There are senior coaches, mentors and tutors assigned to each intern, ensuring
that the learning objectives of each stint are met, and suggesting any course
correction which may be required for a particular intern. All this ensures that
young talent is honed to take up the challenging assignments in the later stages
of their career.
1
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Awareness campaigns on hygiene
Child immunization camps
Free eye check ups
Anti-tobacco education
Anti-alcoholism camps.
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Conclusion
With its long and luminous history HUL is Indiastrue pride.
It is a company which the customers in rural aswell as urban India relate to. This explains the
deep penetration of HUL in Indian market.
The future for HUL is demanding newer and highlevel innovations so as to cope up with increasingcompetition.
However HUL is well equipped with all what isneeded of this Indian Giant.
1
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