Marketing Audit

Macro Environment:
Demography:
Age becomes a vital factor in HUL’s market segmentation program. For instance, Pears and Dove is
targeted at the young adults while lifebuoy is promoted as a family product. Similarly, based on
income the company is offering wheel and surf excel.
Economic:
Financial crisis in 2008 had dented the consumption patterns of people across the Asian regions. The
raw materials sources such as Chemical and Palm oils were difficult to procure. As a result, HUL
could not keep up with the prices.
Environmental:
HUL was found breaching the environmental regulations on multiple occasions. For instance, it was
accused of dumping hazardous chemical waste in the nearby lands, endangering the lives of citizens
and employees, in Kodaikanal factory – where they were seen selling scarps of glass waste
containing mercury.
Task Environment:
Markets:
HUL is one of the fastest growing companies in India. It has more than 18000 employees and 1800
business partners. Its distribution covers 6.4 million retail outlets. The company has reported a 9%
YoY growth with a market cap of Rs. 5 trillion. HUL major market segments are Home Care (which
accounts for 50% of India’s FMCG sales), Beauty and Personal Care, Foods and Refreshments.
Customers:
HUL markets itself as a multi local and multi-national brand and includes customers from various
sectors and segments based on the customers socio economic status. The customer needs that HUL
addresses is primarily the daily consumables like self-care. The buying process is the customer
expects the product to be placed in the nearest store. So, the product distribution must be very
aggressive so that it is available at all places and times.
Competitors:
The prominent competitors are as follows: Marico, L’Oreal, Nirma, ITC and Colgate-Palmolive. FDI in
retail has allowed more international brands to penetrate into the market challenging HUL’s
dominance in the FMCG sector.
Distribution:
The distribution of the products must be very aggressive so that it is available to the customers at all
times in the nearest store possible. Hence, HUL must be partnering with major and minor
distributors so that they can place the product at all possible stores.
Marketing Strategy Audit:
Business Mission:
Unilever's business mission is “to add vitality to life. We meet every day needs for nutrition, hygiene
and personal care with brands that help people feel good, look good and get more out of life.”
The business mission is aligning with the types of products that HUL is offering.
The business mission is feasible as they are achievable target and the company is able to address
these with their product placements and offerings
Marketing Organization Audit:
Formal structure:
Conny Braams is the Chief digital & marketing officer. She is responsible for the marketing of the
entire Unilever product line globally. She has the full autonomy to affect the marketing strategy
which in turn affects the demand and customer satisfaction.
HUL is primarily structured on the basis of geography as divisions. The company also offers different
products for the different end users based on which it has targeted different customers.
Marketing Systems Audit:
Marketing planning system:
HUL has strategic partnerships with technological companies to increase the marketing auditing
efficiency and to have a feedback system for the employees that are working on the field who will
have better insights on the consumer preference and demand. They determine the impact on the
customers and the market. They have also launched initiatives that reach out to the customers to
understand the market better. Based on the needs and their review the action plan is generated on
how to proceed with the marketing plan.
Marketing productivity Audit:
Cost Effectiveness Analysis:
HUL seems to be spending exorbitant amount of money in advertising which constitutes of around
10% of the revenue generated by HUL. But the previous fiscal year, the company had increased the
spending by 1% but the revenue had increased by 18%. The marketing spending can be justified but
the proportion of the revenue seems to be high.
The company can look to improve the advertisements in locations or mediums that are bringing the
highest margins and look to lower the medium that are not bring up much revenue for the company.
Marketing functions Audit:
Products:
HUL is in a wide variety of segments and categories: Home Care, Beauty and Personal Care, Foods
and Refreshments. The Home Care product line of HUL offers to make the life easier to look after the
home and to create a clean and positive environment.
The personal care products of HUL are primarily targeted at women and men are an after-thought.
They need to improve their offerings for men as the male population is much more and the only
male specific product that they offer is axe deodorant. There is a need to offer more for the male
customers and the company needs to address this.
In the Foods and Refreshments they offer instant soup, beverages and deserts. The company is
looking to offer occasional indulgences that the customers look for. This may benefit the brand being
looked at as an occasional or an event product but there is a need to increase the sales in this
segment. Therefore, the company must look at the alternatives on the products which can be useful
daily and which has a better repeat customers potential.
The products are not seen as a luxury nor is it seen as a budget offering. Therefore, there is a huge
scope of up-stretching and down-stretching.
There should be more male specific products offered by HUL to capture the new generation male
who look for these product categories.

Marketing Audit

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Marketing Audit

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Macro Environment:

Marketing Strategy Audit:

Marketing Organization Audit:

Marketing Systems Audit:

Marketing planning system:

Marketing productivity Audit:

Cost Effectiveness Analysis:

Marketing functions Audit:

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