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Abstract
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer goods company, touching the lives of
two out of three Indians with over 20 distinct categories in House & Personal Care Product and Food &
Beverages. They endow the company with a scale of combined volumes of about 4 million tones and sales of
Rs. 14000 crores. They are manufactured over 53 factories across India. The operations involve over 3700
suppliers and associates. HUL's distribution network comprising about 6800 redistribution stockiest, covering
8.4 million retail outlets reaching the entire urban population and about 390 million rural consumers. The main
objective of this study is to find what the steps of Hindustan Unilever Ltd. are is adopting to be market leader
and to differentiate itself from its competitors. Excluding the onetime gains, the company's net profit rose
21%. HUL with revenues of Rs. 6284.75 crore and a net profit of Rs. 1024.38 crore in the current year In
recent years, the FMCG sector declined due to down trading. The new Hindustan Lever see an exciting opportunity
for growth. They have 41 powerful brands covering all segments, with leading market positions in most.
Today, these are stronger and more relevant to the consumer than ever. The scale of the business and operations
gives them the resources needed. They are delivering good services and the changes they brought in the
products are well taken by the customers, by this they are generating sustainable profitable growth.
Keywords: stockist, segments, FMCG, sustainable, redistribution.
Introduction:
As competition heats up, Indias top consumer-products
company woos affluent shoppers with global brands like
Dove. Hindustan Unilever Limited (HUL) is Indias largest
Fast Moving Consumer goods company, touching the lives
of two out of three Indians with over 20 distinct
categories in House & Personal Care Product and Food &
Beverages. They endow the company with a scale of
combined volumes of about 4 million tones and sales of
Rs. 14000 crores. HUL is also one of the countrys largest
exporters; it has been recognized as a Golden Super Star
Trading House by the Government of India. HULs brandslike Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely,
and Kissan are household names across the country
and span many categories soaps, detergents, tea and
other products. They are manufactured in over 53
factories across India. The operations involve over 3700
suppliers and associates. HULs distribution network
comprising about 6800 redistribution stockiest, covering
8.4 million retail outlets reaching the entire urban
population and about 390 million rural consumers.HUL is
not only focusing on health & hygiene education, women
empowerment and water management but also involved
in education and rehabilitation of special or
underprivileged children, care for the destitute and HIVpositive and rural development.
Review of Literature:
According to Pradeep Tognatta (2012) , the economic
growth in Indias agricultural sector in last year was over
Rationale of Study:
HUL started project Shakti in 2001 with the aim of increasing
the companys rural distribution reach simultaneously
prov iding rura l wo men with incom e- genera ting
opportunities. This research study examines this marketing
initiative as a case where corporate societal objectives are
helping achieve business goals. In present situation not only
in one industry but also all sectors are facing tough
competition. It has become very difficult to grow, stabilize
and excel in business performance. Over and above,
business environment is changing drastically. It is very
difficult to predict about future. High degree of risk is
involved in it. Sincere and dedicated efforts are needed in
marketing to retain the existing customers and attract the
new customers. It is required to influence the attitude and
behavior of buyers. A lot of promotional activates are
needed.
Objectives:
2.
Electronic Media
22%
Print Media
37%
29%
Any Other
12%
Research Methodology:
Variables to be used: 100
3.
75%
Average
16%
Low
9%
90%
10%
Others
0%
Always
66%
Rarely
0%
Sometimes
34%
Source: Primary Data
2%
Discount
33%
Free Coupons
39%
Any Other
26%
Source: Primary Data
80%
No
20%
Source : Primary Data
7.
Yes
95%
55%
No
5%
15%
35%
Yes
55%
No
5%
Occasionally
40%
62%
29%
Product Mix
9%
Source : Primary Data
9.
Findings
Push Strategy
10%
Pull Strategy
80%
Discount
10%
10%
26%
Suggestions:
Limitations:
Several limitations are occurred with doing survey and
making report. Here we desire my limitations which
occurred while preparing our report and survey includes -
Time
Several Outlets
Conclusion:
HLLs pioneering efforts to develop techniques to bring
branded products to India's rural poor gradually had an
impact on their entire portfolio of brands. Still, HLL also
looked to exploit other growth opportunities. In developing
a new salt product, HLL was hardly creating a new market.
In fact, the fascinating history of salt dates back many
centuries. HLL also wanted to minimize financial risk. By
partnering for manufacturing capacity and sharing
distribution assets with other HL products, the investment
in fixed assets for the new product was near zero.
Fragmentation in Indian media offered HLL the opportunity
to test the product incrementally. In the first few cities in
which they launched the product, HLL was gratified to
discover that they were successfully upgrading consumers
from unbranded to branded salts. Today they are a focused
on FMCG company with our branded business accounting
for over 905 of sales, consisting of 41 brands across 22
categories. In foods, there is enormous growth potential in
leading the evolution of consumers to branded and
processed foods. They have consolidated their portfolio and
improved the gross margins by over 16% through product
mix and cost reduction.
As the largest FMCG player it was up to them reverse the
downgrading to realize its true growth potential. Over the
next 15 years, per capita income in India is likely to touch
China's current levels. At those levels, the FMCG market
will be over Rs. 1.48 lakhs crore from current value of Rs.
96000 crores. Their main challenges were to reverse the
downgrading in the categories and reestablish the relevance
of their brands in the mind of the consumer. In 2013, they
had 168 brands, many undifferentiated and lacking scale.
They chose to focus on 41 power brands covering all
consumer appeal and price segments. The first step was
to ensure that they offer world class quality and real
differentiation backed by technology to give them the
advantages over low priced competition. They have invested
over Rs. 1300 crores, or 7.5% of sales, in the last four
years to upgrade the brands. Perhaps the most significant
change has been to move the brand beyond merely making
functional claims to plying a bigger and deeper role in the
lives of consumers. Today Lifebuoy, their oldest brand, has
grown at over 18% for the last benefit of 'great clean' by
saving two buckets of water with every wash. Their brands
and sound understanding of the local consumer are
supported by a world class Research and Development
capability. They have over 450 of the brightest scientists
and technologists based in India.
Hindustan Lever has historically had a strong bond with its
customers. This is possible because of IT connectivity across
the extended supply chain of about 3500 suppliers, 190
factories and 8500 stockiest. Their entry into Water Purifiers,
through Purest, shows great promise. At 17 paise per liter,
it is extremely affordable for the common man. They have
restructured the company, integrating eight profit centers
into two Divisions-Home and Personal Care (HPC) and Foods.
To ensure that Hindustan Lever remains competitive in the
long-term, they have made significant investments in
product quality, pricing and marketing. Recently an
international competitor attacked their laundry business led
References:
Books
1.
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Web Sources:
1.
http://www.fmcg.com
2.
http://www.ruralmart.com
3.
http://marketwatch.com