SM Comp Anly

Hindustan Unilever Ltd.
INTRO
INTRODUCTION
 India's largest Fast Moving Consumer Goods company with 80 factories across
India.
 In 1931, first Indian subsidiary, Hindustan Vanaspati Manufacturing Company,

followed by Lever Brothers India Limited (1933) and United Traders Limited (1935).
 HUL formed in November 1956;
 The Anglo-Dutch company Unilever owns a majority stake in Hindustan Unilever

Limited.
 The mission – “add vitality to life.”

Contd..
• Sales growth in 2008-09 is 15.5%
• Operating margin increased by 0.4% from
14% to 14.4% in the year 2008-09
• Gross sales is 21649.51 crores
• Share price Rs 237.50
• HUL is the market leader in the soap segment
in India
STRATEGIC THINKING
VISION:
HUL's vision is to continuously innovate technologies to
further reduce water consumption and further increase
conservation in its operations. Simultaneously, HUL sites will
progressively help communities, wherever required, to
develop watersheds.
MISSION OF HUL:
Unilever'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.
CORPORATE PUPROSE
Unilever'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 with consumers and are the foundation
for our future growth. We will bring our wealth 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.
PRODUCT SEGMENTATION OF HUL
COMPETITIVE SITUATION OF HUL WITH ITS COMPETITORS
80%
70%
60%
50%
40%
30%
HUL
20% COMPETITOR
10%
0%
Competitors of HUL SOAPS
HUL brands Competitors brands
• Lux • Santoor, Chandrika
• Rexona • Cinthol, Mysore Sandal
• Breeze • Godrej no. 1, Nirma
• Lifebuoy • Dettol
• Santoor,
• Pears
• Camay
• Dove
• Hamam • Margo
HUL’s SOAP MARKETSHARE
57% 55% 55%
52%
10% 9% 9%
8% 8%
5%
SWOT ANALYSIS
Strengths:
• Strong brand portfolio, price, quantity & variety.
• Innovative Aspects.
• Presence of Established distribution networks in
both urban and rural areas.
3400 distributers
16 million outlets over the world.
700 million customer base.
• Strong R&D of the company
• Highly skilled human resource.
• Corporate Social Responsibility (CSR)
SWOT Analysis
Weaknesses:
•Strong Competitors.
•High advertising costs
•Complex supply chain configuration, unwieldy number. Of SKU’s with dispersed
manufacturing locations.
•Price positioning in some categories allows for low price competition.
Opportunities:
Large domestic market – over a billion population.
Untapped rural market.
Changing Lifestyles & Rising income levels, i.e.
increasing per capita income of consumers.
Threats:
 Tax and regulatory structure.
 Mimic of brands
 Entry of ITC in FMCG sector.
 Increasing cost of raw material
PORTER’S FORCES
RIVALS
Consumer in this category enjoy
multitude of choices.
It does not cost anything for a consumer to

buy one brand of shampoo instead of
another, making the industry quite
competitive.
SUPPLIERS
Consumer product faces some amount of
supplier power simply because of the cost
they incur when switching suppliers
Suppliers that do a large amount of

business with these companies are also
beholden to their customers.
BUYERS(CUSTOMERS)
Consumer faces weak buying power
because customers are fragmented and
have little influence on price or product.
Considering buyer power retailers it is very

high since they are able to negotiate the
price with the companies.
POTENTIAL ENTRANTS
Given the amount of capital investment
needed to enter certain segment in house
hold consumer products, the threat of
new entrant is fairly low.
Whether the new entrant can get its

products on the shelves of the same
retailers as its much larger rivals.
THREAT OF SUBSTITUTE
Within the consumer product industry, brand
succeeds in helping to build a competitive
advantage, but even the pricing power of the
brands can be eroded.
PEST ANALYSIS
POLITICAL
• 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
ECONOMICAL
• Recession will have high unemployment, low spending power
and low stakeholder confidence
• Cheaper labour in developing countries affects the
competitiveness of products from developed countries
SOCIAL
• Changes in the structure of a population will affect the supply and demand
of goods and services within an economy.
• Falling birth rates will result in decreased demand and greater competition
as the number of consumers fall.
• Organisations must be able to offer products and services that aim to
complement and benefit people’s lifestyle and behavior.
TECHNOLOGICAL
• Advanced technology for manufacturing process which give low cost
advantage.
• 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.
STRATEGIES FOLLOWED AT HUL
Distribution strategy.
Distribution network (direct selling)
Brand extension strategy
Line extension strategy
Repositioning strategy
Promotional strategy-ads,(Rs700-800 cr)
Segmentation strategy
Premium brand
Affordable brand
Value for money
Innovation strategy-introduction of sachet in shampoo
Mergers and acquisitions strategy
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Hindustan Unilever Ltd.

 In 1931, first Indian subsidiary, Hindustan Vanaspati Manufacturing Company,

 HUL formed in November 1956;

 The Anglo-Dutch company Unilever owns a majority stake in Hindustan Unilever

 The mission – “add vitality to life.”

• Rexona • Cinthol, Mysore Sandal

• Breeze • Godrej no. 1, Nirma

It does not cost anything for a consumer to

Suppliers that do a large amount of

Considering buyer power retailers it is very

Whether the new entrant can get its

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