hindustan unilever & its marketing strategies

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Page 1: Hindustan Unilever & its marketing strategies
Page 2: Hindustan Unilever & its marketing strategies

INTRODUCTIONINTRO

India's largest Fast Moving Consumer Goods company with 100 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.

one of the country's largest exporters and recognised as a Golden Super Star Trading House

The mission – “add vitality to life.”

Page 3: Hindustan Unilever & its marketing strategies

VISION OF THE COMPANY

Page 4: Hindustan Unilever & its marketing strategies

Hindustan unileverltd

Personal wash

Lux, lifebuoy, dove

Pears, rexona, breeze,

Laundry

Surf excel

Wheel

sunlight

Skin care

Fair & lovely

Ponds

vaseline

Hair careSunsilk

Clinic

Oral carePepsodent

closeup

DeodorantsAxe

rexona

Color cosmetics lakme

ayurvedic ayush

Page 5: Hindustan Unilever & its marketing strategies
Page 6: Hindustan Unilever & its marketing strategies

HOME & PERSONAL CARE

FOODS

EXPORTS

OTHERS(CHEMICALS, WATER)

16.2%

7.3%

2.2%

74.3%

CONTRIBUTION TO DIFFERENT SECTORS

MARKET CAPITALISATION AS PER BSE Dec 2008

Page 7: Hindustan Unilever & its marketing strategies

PERSONAL CARE

Page 9: Hindustan Unilever & its marketing strategies

•Lux was launched in UK in 1899 as a Laundry soap to wash delicate(silk) clothes in home.

•In India, Lux launched in 1929 & it has proved to be a powerful brand in beauty soap segment.

•From the starting, it has been claimed as “The Beauty Soap Of Film Stars”.

•In 2006, Lux was awarded as Awaz consumer Award 2005 as the most preferred toilet soap.

Page 10: Hindustan Unilever & its marketing strategies

•Dove was launched in 1955 in US. It has been available in India from 1995.

•It has proved to have ¼ of moisturising cream that maintains the skin be smooth & soft.

•In 2004, HUL’s campaign of Real Beauty by Ogilvy inspired women to have theconfidence to be comfortable with themselves & in 2006 it got the Grand Effie Award.

Page 11: Hindustan Unilever & its marketing strategies

GERMS SE KOI DAR NAHI

•Launched in 1895 in UK and then in India.

•A Low cost soap catering huge population.

•The jingle, ‘Making a billions of Indian feel safe and secure’Says everything!!

•Comes with different varieties and treats different needs.

Page 12: Hindustan Unilever & its marketing strategies

Competitors of HUL SOAPS

HUL brands

• Lux

• Rexona

• Breeze

• Lifebuoy

Competitors brands

• Santoor, Chandrika

• Cinthol, Mysore Sandal

• Godrej no. 1, Nirma

• Dettol

Page 13: Hindustan Unilever & its marketing strategies

Competitors of HUL SOAPS

HUL brands

• Pears

• Dove

• Hamam

• Liril

Competitors brands

• Santoor, Savlon

• Camay

• Margo

• Cinthol

Page 14: Hindustan Unilever & its marketing strategies

0%

10%

20%

30%

40%

50%

60%

FY04 FY05 FY06 FY07 FY08

HUL

NIRMA

GCPL

54%

6% 9%6%

10%

57% 55% 55%

52%

10% 9%8% 8%

9%

5%

HUL’s SOAP MARKETSHARE

Page 15: Hindustan Unilever & its marketing strategies

The HUL Hair Care

Page 16: Hindustan Unilever & its marketing strategies

Sunsilk was launched in1964, is the largest beauty shampoo brand in the country. Positioned as the 'Hair Expert', Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results.

The benefits are more compelling and relevant since the variants are harmonised in terms of the product mix - fragrance, colour and ingredients are all well linked to cue the overall synergy. The range comes in premium packaging and design. The accent is on "It knows you, and hence knows exactly what your hair needs".

Page 17: Hindustan Unilever & its marketing strategies

Clinic Plus Health shampoo was launched in India in the year 1987. It is India's largest selling shampoo, offering the five most important hair

health benefits: strengthens weak hair, prevents hair breakage, softens rough dry hair, shine for thick and healthy hair, and contains anti-

dandruff ingredient.

The franchise also includes Clinic All Clear Total, first introduced in 1996. It is a dual shampoo – it not only fights the last dandruff flake, but also adds back lost nutrients to make hair healthy and beautiful. Clinic All

Clear Total is a dandruff solution for everyday use.

Page 18: Hindustan Unilever & its marketing strategies

Became India’s Largest PremiumShampooBrand within the launch of 1 year.

HUL is upgrading Dove time to time to meet customer needs e.g. Dove Daily,Dove Dry Therapy, Dove Breakage Therapy& so on…

DOVE SHAMPO

Page 19: Hindustan Unilever & its marketing strategies

Competitors of HUL Hair Care

• Sunsilk

• Clinic Plus

• Dove

• Pantene

• Head & Shoulders

• L’Oreal, Garnier

Page 20: Hindustan Unilever & its marketing strategies

Welcome to the segment Of HUL Oral Care

Page 21: Hindustan Unilever & its marketing strategies

• Pepsodent, launched in 1993, was the first toothpaste with a unique anti-bacterial agent to address the consumer need of checking germs even hours after brushing.

• Pepsodent packs included a Germ Indicator in February-May 2002, which allowed consumers to see the efficacy in fighting germs. As a follow-up, in October 2002.

• The relaunch campaign in October 2003 widened the context to "sweet and sticky" food and leveraged the truth that children do not rinse their mouths every time they eat, demonstrating that this makes their teeth vulnerable to germ attack.

• Pepsodent's most recent campaign aims at educating consumers on the need for germ protection through the night.

• Pepsodent also includes a range of toothbrushes.

Page 22: Hindustan Unilever & its marketing strategies

Closeup is the original youth brand of India.The first brand targeting youth in the oral care market, with an edgy and youthful image which stays relevant till date. Ever since its launch in 1975Closeup was the first gel toothpaste to be launched in India and has led the gel toothpaste segment ever since. Closeup became the first Gel toothpaste with Fluoride in the Indian Market!The brand umbrella also includes Closeup Lemon Mint, gel toothpaste with the whitening benefits of lemon.The latest entry in the Closeup stable is Closeup Milk Calcium –revolutionary new toothpaste with the goodness of milk calcium

Page 23: Hindustan Unilever & its marketing strategies

Competitors of HUL Oral Care

• Pepsodent

• Close Up

• Colgate

• Meswak

• Dabur Red

• Anchor

Page 24: Hindustan Unilever & its marketing strategies

0%

10%

20%

30%

40%

50%

60%

FY04 FY05 FY06 FY07 FY08

COLGATE

HUL

DABUR

33% 32%

48% 49%

9%

48%

32%

2%

46% 47%

7%

30%

8%

30%

7%

TOOTHPASTE MARKET SHARE

Page 25: Hindustan Unilever & its marketing strategies

HUL COSMETICS

Page 26: Hindustan Unilever & its marketing strategies

Named after the French opera Lakmé

Lakme started in 1952 as a 100% subsidiary of Tata Oil Mills

In 1998 Tata sold off their stakes in Lakmé Lever to HLL

It offered a range of cosmetics with nail polishes & lipsticks from the early 80’s

It has introduced a range of skincare products from 1987.

Competitors :

Revlon, Maybelline,L’Oreal

Page 27: Hindustan Unilever & its marketing strategies

Theron T. Pond, a pharmacist from New York, introduced 'Pond's in 1846

In 1886 it was relaunched as Pond's Extract and in 1914 Pond's Cold Cream

In 1955 Pond's Extract Company merged with Chesebrough Manufacturing and in 1987 Unilever purchased Chesebrough-Pond's

Competitors:

Nivea, Charmise

Page 30: Hindustan Unilever & its marketing strategies

TEA

• Brooke Bond Red Label was launch in 1903

• It is India's single largest tea brand

Page 31: Hindustan Unilever & its marketing strategies

SALT

• The brand currently operates in two of the largest, almost universally consumed, foods categories of the country – Salt & Atta (wheat flour)

• Annapurna brand, first introduced in 1997

Page 32: Hindustan Unilever & its marketing strategies

ICE CREAM

• Kwality Wall's, launched in 1995

• Key launches includes. Cornetto, Feast, Viennetta, and a range of Sundaes, and also exciting eats for children specifically, like Lime Punch or Sunshine Zing Cone

Page 34: Hindustan Unilever & its marketing strategies

TEA

Page 35: Hindustan Unilever & its marketing strategies

SALT

Page 36: Hindustan Unilever & its marketing strategies

SOUPS

Page 38: Hindustan Unilever & its marketing strategies

HUL LAUNDRY CARE

Page 39: Hindustan Unilever & its marketing strategies

Pioneer in Indian detergent powder.

Constantly upgraded itself.

e.g. Surfexcel Blue, Quick wash,

Page 40: Hindustan Unilever & its marketing strategies

Launched in 1969, Rin with the power of its thunderous lightning flash has become a household name synonymous with dazzling white clothes.

A Value added brand with different variants e.g. Rin matric &Rin advanced.

Rin has won a number of accolades, the most recent being voted as the Most Preferred Detergent brand in India at the Awaaz Consumer Awards in 2006.

Page 41: Hindustan Unilever & its marketing strategies

•A Heritage brand launched in 1888In the form of detergent cake.

•Value added brand i.e. priced over Wheel but below Rin.

•Famous in WB & Kerala.

SUNLIGHT

Page 42: Hindustan Unilever & its marketing strategies

• Low priced detergent.

• Introduced in 1987 to compete with Nirma.

Page 43: Hindustan Unilever & its marketing strategies

COMPETITORS

• SURF EXCEL: ARIEL

• WHEEL: NIRMA

• RIN: TIDE

Page 44: Hindustan Unilever & its marketing strategies
Page 45: Hindustan Unilever & its marketing strategies

3

Company Name Net Sales Net ProfitOperating

Profit Margin

(in Rs.

Crore)Growth (%)

(in Rs.

Crore.)Growth (%) (%) (%)

FY'08 FY'08 FY'07 FY'08 FY'08 FY'07 FY'08 FY'07

HUL 13880.56 13.36 9.38 1769.06 -4.65 31.76 14.95 14.74

GCPL 891.92 17.22 16.05 148.12 21.37 0.68 22.27 20

Dabur 2093.63 19.9 29.7 316.77 25.66 33.3 18.59 17.45

Colgate 1518.88 14.03 16.02 231.71 44.66 16.4 18.09 18.79

Marico 1575.99 14.76 31.39 143.41 23.45 17.47 13.29 13.77

Proctor and Gamble 643.95 18.54 -4.98 131.42 46.3 -35.6 27.75 24.14

Page 46: Hindustan Unilever & its marketing strategies

SWOT Analysis Strengths:

•Strong brand portfolio, price quantity & variety.•Innovative Aspects.•Presence of Established distribution networks in bothurban and rural areas.•Solid Base of the company.•Corporate Social Responsibility(CSR)

Weaknesses:•"Me-too" products which illegally mimic the labels and brands of the established brands.•Strong Competitors & availability of substitute products.•Low exports levels.•High price of some products.•High Advertising Costs.

Page 47: Hindustan Unilever & its marketing strategies

Opportunities:

•Large domestic market – over a billion populations .•Untapped rural market.•Changing Lifestyles & Rising income levels, i.e. increasing per capita income of consumers.•Export potential and tax & duty benefits for setting exports units.

SWOT Analysis

Threats:

•Tax and regulatory structure.•Mimic of brands•Removal of import restrictions resulting in replacing of domestic brands.•Temporary Slowdown in Economy can have an impact on FMCG Industry.

Page 48: Hindustan Unilever & its marketing strategies

MARKETING STRATEGIES OF HUL

Page 49: Hindustan Unilever & its marketing strategies

MARKETING STRATEGIES OF HUL 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(HUN), franchisee to reach everyone e.g. Aviance, Ayush.

• Build segments & market for the future where

Unilever has strong expertise.

Page 50: Hindustan Unilever & its marketing strategies

For long term benefits, HUL started Project Streamlinein 1997.

MARKETING STRATEGIES OF HULFOR RURAL INDIA

Project Shakti, partnership with Self help groups of Rural women & covers 5000villages in 52 districts in different states.

Appointed 6000 Sub-stockists that directly covers about 50,000 villages & 250 million customers.

Integrate Economic, Environment & Social objectives with Business agenda.

Page 51: Hindustan Unilever & its marketing strategies

Corporate social responsibility

Providing education on health and hygiene

Women empowerment

Water management

Rehabilitation of special or underprivileged children

Care for the destitute and HIV-positive

Rural development.

Plays active role in natural calamities

Page 52: Hindustan Unilever & its marketing strategies

EVERYDAY I WILL SELL.EVERYDAY I WILL EARN.MONEY. RESPECT

1

Started in 2001, Shakti is HUL's rural initiative, which targets small villages with population of less than 2000 people or less.

micro-enterprise opportunities for rural women

Providing health n hygiene education through shaktivani program

ishakti portal

Shakti has already been extended to about 15 states ,80,000 villages in with 45,000 womenentrepreneurs and generating Rs.700-1000 per month to each women.

Page 53: Hindustan Unilever & its marketing strategies

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