Hull Assignmnt

7/28/2019 Hull Assignmnt

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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 PUPROSEUnilever'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 co ns umer s an d

are the foundation for our future growth . We wil l br ing our

we al th of 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 MISSIONadd 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

HINDUSTAN UNILEVER LTD

Personal washLux, lifebuoy, dove

Pears, rexona, breeze,

Laundry

Surfexcel

Wheel

sunlight

Skin careFair & lovely

Ponds

vaseline

Hair careSunsilk

Clinic

Oral carePepsodent

closeup

DeodorantsAxe

rexona

Color

cosmeticslakme

ayurvedic ayush


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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.


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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


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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 HindustanUnilever


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STRENGTHS:

Strong and wel l d i f ferent ia ted brands wi th

leading share pos i t ions . Brand por t fol io

includes 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.


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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.


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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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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.

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.

Focus on product innovation/

relaunches/ development of newmarkets:

Recent price cut in Rin/ price

war in laundry:


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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.

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.

Fabric conditioner, hair conditioner, OOH consumption of ice creams, water,

premium skin lightening.

Market share improvement is

the key objective over near term:

New products/innovations

which have done well:


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HUL has forward cover for key commodities and keeps reviewing the time lines.

The company will relentlessly drive down costs.

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.

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.

Raw material costs:

Ad spends

Down trading in tea

and detergents:


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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 ofbackward 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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Training and development

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

On thejob:

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.

On the job

Personaldevelopment

Continual

update

Professionalskills


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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 Academya 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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Hull Assignmnt