ProjectOnHindustan Unilever Limited (HUL)Submitted by -Name: Aditi AsolkarRoll No: 12H04Stream: (MHRDM)

IndexSr. NoTopic

1Introduction

2Hindustan Lever Limited in Pre 1990

3How HLL Got There

4Rural Development

5Financial Performance

6Organisational Structure

7Hindustan Unilever Limited Post 1990

8How HUL Got There

9Organisational Structure

10Distribution Channel

11Products

12Core Competencies

13Social Cause Projects

14Financial Performance

15Strategies

16Conclusion & Recommendations

17Bibliography

Introduction Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company with a heritage of over 75 years in India and touches the lives of two out of three Indians.HUL works to create a better future every day and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others.

Brands like Lux, Lifebuoy, Vim, Surf, Rin, Wheel, Closeup, Brooke Bond, Bru, Clinic Plus, Fair & Lovely, Pond's, Lakm, Sunsilk, Kwality Wall's, Kissan, Knorr and many others have become household names used by around 700 million consumers across India. HUL is a subsidiary of Unilever, one of the worlds leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about 46.5 billion in 2011. Unilever has about 52% shareholding in HUL.These products are manufactured over 40 factories across India and the associated operations involve over 2,000 suppliers and associates. Hindustan Unilever Limited's distribution network comprises about 4,000 redistribution stockists, covering 6.3 million retail outlets reaching the entire urban population, and about 250 million rural consumers. HUL is also one of India's largest exporters. It has been recognised as a Golden Super Star Trading House by the Government of India. Presently, HUL has over 15,000 employees including over 1,500 managers and has an annual turnover of around Rs.21,736 crores (financial year 2011 - 2012). Its mission is to "add vitality to life." The vision that inspires "to meet everyday needs of people everywhere to anticipate the aspirations of our consumers and customers and to respond creative and competitive with branded products and services

which raise the Quality of life." This objective is achieved through the 110 brands that the company markets. Its deep roots in local cultures and markets around the world are HUL's unparalleled inheritance and the foundation for its future growth. With this wealth of knowledge and international expertise in the services of local consumers it is truly a multi-local multinational.

Today as the Unilever Group, its brands are bought 150 million times a day across 150 countries.Hindustan Lever Limited in Pre 1990

Lever Brothers India Limited was incorporated in India on October 17th, 1933. The event is

recorded in the Gazetteer of India (Maharashtra State, Greater Bombay District, Volume II,

published by the Government of Maharashtra) in the following words: ...the establishment

of soap factories by the Lever Brothers...in 1933-34 gave new dimensions to the industry,

with which imports of soap fell down.To make cleanliness a commonplace; to lessen work for women; to foster health

and contribute to personal attractiveness, that life may be more enjoyable and

rewarding for the people who use our products.

~ William Hesketh Lever, 1890Unilever's mission is to add vitality to life. We meet everyday needs of nutrition,

hygiene and personal care with brands that help people feel good, look good and

get more out of life. Mission Statement, The two statements were written some 120 years apart. Their words are very different, as indeed are the times that framed these thoughts. But the sense of purpose has remained unchanged from the days it all began with a simple idea.It had a simple name and a singular purpose. It was a soap named Sunlight and

W. H. Lever wanted it to relieve the drudgery of washing in Victorian England.India is one of those numerous countries, but it is also unique. The Indian roots travel almost as long back as the birth of the enterprise in the 1880s.

In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers". With it, began an era of marketing branded Fast Moving Consumer Goods (FMCG).

Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim. Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937.

In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). These three companies merged to form HUL in November 1956; HUL offered 10% of its equity to the Indian public, being the first among the foreign subsidiaries to do so. Unilever now holds 52.10% equity in the company. The rest of the shareholding is distributed among about 360,675 individual shareholders and financial institutions.The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the company had launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was formed. Brooke Bond joined the Unilever fold in 1984 through an international acquisition. The erstwhile Lipton's links with India were forged in 1898. Unilever acquired Lipton in 1972, and in 1977 Lipton Tea (India) Limited was incorporated. Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986.

Since the very early years, HUL has vigorously responded to the stimulus of economic growth. The growth process has been accompanied by judicious diversification, always in line with Indian opinions and aspirations. The 1990s witnessed a string of crucial mergers, acquisitions and alliances.HUL's introduction of a variety of products from the time of its conception till 1971.

How HLL Got There

1888Sunlight soap introduced in India

1895Lifebuoy soap launched; Lever Brothers appoints agents in Mumbai, Chennai,Kolkata and Karachi

1902Pears soap introduced in India

1905Lux soap and Lux flakes introduced

1913Vim scouring powder introduced

1930Unilever is formed on January 1st through merger of Lever Brothers and Margarine Unie

1931Hindustan Vanaspati Manufacturing Company registered on November 27th; Sewri factory site bought

1932Vanaspati manufacture starts at Sewri

1933Application made for setting up soap factory next to the Vanaspati factory at Sewri; Lever Brothers India Limitedincorporated on October 17th

1937 Prakash Tandon, one of the first Indian covenanted managers, joins HVM Agencies

1941Agencies in Mumbai, Chennai, Kolkata and Karachi taken over; Company acquires own sales force

1947Pond's Cold Cream launched

1956Three companies Lever Brothers India Limited, Hindustan Vanaspati Manufacturing Company Limited and United Traders Limited merge to form Hindustan Lever Limited, with 10% Indian equity participation

1959Surf launched

1961Prakash Tandon takes over as the first Indian Chairman; majority of the managers are Indians

1963Head Office building at Backbay Reclamation, Mumbai, opens

1967Hindustan Unilever Research Centre, opens in Mumbai

1968V. G. Rajadhyaksha takes over as Chairman from Prakash Tandon; Fine Chemicals Unit commissioned at Andheri; informal price control on soap begins

1969Rin bar launched; Fine Chemicals Unitstarts production; Bru coffee launched

1971V. G. Rajadhyaksha presents plan for diversification into chemicals to Unilever Special Committee plan approved; Clinic shampoo launched

1973T. Thomas takes over as Chairman from V. G. Rajadhyaksha

1974Pilot plant for industrial chemicals at Taloja opens; price control onsoaps withdrawn

1975Jammu project work begins; statutory price control on vanaspati & babyfoods withdrawn; Close-up toothpaste launched

197651% foreign shareholding allowed forcompanies with 60% turnover in coresector & 10% in exports

1976Construction work of Haldia chemicalscomplex begins; Taloja chemicals unitbegins functioning

1977Jammu Synthetic Detergents plant inaugurated; Indian shareholdingincreases to 18.57%

1978Indian shareholding increases to 34%; Fair & Lovely skin cream launched

1979Sodium tri-polyphospate plant at Haldiacommissioned

1980Dr. A. S. Ganguly takes over as Chairmanfrom T. Thomas; Unilever shareholding inthe Company comes down to 51%

1982Government allows 51% Unilever shareholding

1984Foods, Animal Feeds businesses transferred to Lipton

1985Acquisition of Kothari General Foods by Brooke Bond

1986Agri-products unit at Hyderabad starts functioning first rangeof hybrid seeds hits the market

1988Launch of Lipton Taaza tea

1990S. M. Datta takes over as Chairman from Dr. A. S. Ganguly

From the Indianisation of management way back in the 1940s that led to Prakash Tandon becoming the first Indian Chairman in 1961, to the era of price control on soap in the 1970s, expansion in the 1980s, the big acquisitions and mergers of the 1990s and the challenges brought by the new millennium, HUL has travelled a long distance indeed.Integrated Rural Development

The IRD programme began in Etah, Uttar Pradesh, in the 1970s with five villages. It grew to cover over 200 villages within 10 years. This not only helped increase milk supply in the region but also had a significant impact on community development.FINANCIAL PERFORMANCE from 1992 2001

Chairmans Of HUL T. Thomas, Chairman~1973-1980

Dr. A. S. Ganguly,Chairman~1980-1990

Growth and Achievements

1956On 27th October, the company was converted into Public Ltd Co., On 17th November Offered to the public 557,000 No. of Equity shares of Rs. 10 each.

1980In order to reduce the non resident holding in the Co. to 51% it offered for sale during Feb out of its shareholding in the Co. 4239523 No. equity shares of Rs. 10 each at a premium of Rs. 9.50 per share in the following manner, (1) 10,00,000 shares to public financial institute, (2) 25,12,702 shares to the existing resident Indian shareholders on pro -rate basis in the ratio 1:4, (3) 726, 821 share to employees and Indian Directors.

Hindustan Unilever Limited Post 1990The liberalization of Indian economy in 1991 and subsequent removal of the regulatory framework allowed HUL to explore every single product and opportunity segment, without any constraints on production capacity.A new chapter that would see growth and innovation, mergers and acquisitions, ups and downs had begun. It built and shaped what is today called HUL, as much a leading corporate house as it is an institution. From simple beginnings, HUL has grown with the times. It has been powered by organic growth

that has come from a deep understanding of Indian markets and Indian culture. The Company

seized opportunities to grow inorganically, like when it acquired the Tata Oil Mills Limited in 1994 or went in for other acquisitions that brought us brands like Kissan, Kwality, Lakm and Modern. Some opportunities have come its way, like when Brooke Bond and Lipton came to it under a worldwide acquisition by Unilever. Brooke Bond India and Lipton India merged in 1994 to form Brooke Bond Lipton India Limited, which merged with HUL in 1996. HUL has also set up a subsidiary in Nepal, Nepal Lever Limited (NLL). The NLL factory manufactures HUL's products like Soaps, Detergents and Personal Products both for the domestic market and exports to India.

In January 2000, as part of its divestment strategy, the government decided to award 74 per cent equity in Modern Foods to HUL. In 2002, HUL acquired the government's remaining stake in Modern Foods. HUL completed 75 years on October 17th, 2008. The Company's name changed to Hindustan Unilever Limited in 2007 to reflect the One Unilever philosophy that seeks to use Unilever's global reach and the local knowledge of its Indian operations to deliver faster growth. The name reflects the Company's Indian heritage and its global alignment with Unilever.

How HUL Got There

1993The erstwhile Brooke Bond India acquires the Kissan brand from the United Breweries Group, giving HUL an entry into the foods business; Dollops ice cream acquired from Cadbury India

1994Tata Oil Mills Company merges with HUL, the largest merger in Indian corporate history then

1994Brooke Bond India and Lipton India merged to form Brooke Bond Lipton IndiaLimited, providing greater focus and ensuring synergy in the traditional beverages business

1994Wall's frozen desserts launched, name changed to Kwality Wall's after a strategic alliance with the families running Kwality ice cream business

1995HUL enters the business of branded staples; Kissan Annapurna salt is launched

1996Brooke Bond Lipton India Limited merges with HUL

1996Lakm Lever Limited, a joint venturewith Lakm Limited is formed

1996K. B. Dadiseth takes over as Chairman from S. M. Datta

1997Unilever sets up an international research laboratory in Bengaluru, it's sixth, and only the second outside of Europe/North America

1998Pond's India Limited merges with HUL

1999Project Millennium is launched to study new growth opportunities, cost efficiency, knowledge sharing, and to attract and retain talent

2000HUL acquires 74% in Modern Foods (India) Limited, the first public sector company to be divested by the Government of India; gives HUL a presence in the bread market

2001M. S. Banga takes over as Chairman from K. B. Dadiseth

2001The Power Brands approach is unveiled under which HUL identifies 35 Power brands, from a total of 110 brands, to be pushed for higher growth

2002HUL acquires the balance 26% in Modern Foods Limited, from the Indian government, consequent to which Modern becomes a wholly owned subsidiary of HUL

2003Edible oils and fats businesses sold to Bunge Limited

2005Management Committee formed, organisation structure simplified

2005Harish Manwani takes over as the Chairman

2006Douglas Baillie appointed as CEO & MD

2007Name formally changed to Hindustan Unilever Limited

2007Joint venture with Smollan Holdings of South Africa to focus on in-store executions and field services for modern trade in India

2008Nitin Paranjpe succeeds Douglas Baillie as CEO & MD

ORGANIZATION STRUCTURE

Chairmans Of HUL

Board of Directors: The Board of Directors of the Company represents an optimum mix of professionalism, knowledge and experience. The total strength of the Board of Directors of the Company is 10 Directors comprising a Non-Executive Chairman, four Executive Directors and five Non-Executive Independent Directors. S. M. Datta, Chairman~1990-1996 K. B. Dadiseth, Chairman~1996-2000 M. S. Banga, Chairman~2000-2005 Douglas Baillie, CEO & MD~2006-2008 Harish Manwani,Chairman Present

Distribution Channel of HUL

Market Penetration of HUL

HUL products in India

Personal wash:Laundry:

Lux. Surf Excel,

Lifebuoy, sun light,

Liril , Rin

Hamam, Wheel

Breeze, Ala bleech

Moti ,Beauty Products:

Dove, Fair & Lovely,

Pears Lakme,

Rexona Ponds,

Foods: Vaseline

-Kissan(Jam,Ketchup,Squashes), Aviance

Annapurna (Aata and salt),Hair-Care:

Knorr Soups, Sunsilk naturals,

Modern Bread Clinic ,

Ice-cream: Dove

Kwality Wall'sOral-Care:

Bewerages:- Pepsodent

Tea: Close-up

Brooke bond,Deo spray:

Lipton, Axe

taj mahal Rexona

Coffee:Water Purifier:-

Brooke bond bru Pureit

Disinfectants:Dishwasher :-

Domex Vim

cif

CORE COMPETENCIES

HUL is the market leader in soaps and detergents as well as hair and skin care products and is

the second largest manufacturer of dental care products. One of the HUL's strengths that has

greatly, contributed to this success are the breakthroughs at the Hindustan Unilever Research

Centre. Their research center is India's largest in the private sector. The focus on research gives HUL an edge over competitors by coming up with innovative products and processes.

Many of which have been patented. Some of the researches have been in household cleaning in soaps and improving performance related to tough soil removal and dingy clothes. Studies related to improving Quality in tea and enhancing characteristics like colour. Aroma and taste

have enabled HUL to make better blends of tea. The company achieved remarkable success in

ice-creams when HLRC developed a 'eutectic mixture' which acts as a refrigeration 'battery' and'

thus enables the sub-ambient temperature distribution/vending of ice-creams.. In the personal

products segment an important research based product is Fair & Lovely.

HUL has always stressed on constant technology up gradation. In 1999 there was a change in

the entire instrumentation setup of HUL Research to bring it on par with the latest research

facilities in the world. The company has always focused on acquiring knowledge-based software

with a view to creating knowledge-based communities in HUL Research. HUL has tied up with

organizations like the Indian Institute of Science (Bangalore), All India Institute of Medical

Sciences (Delhi), National Chemical Laboratory (pune) and Department of Physics, University

of Pune in different areas of research. Besides. HUL has also funded research projects at the

Lawahar Lal Nehru University, New Delhi and the MS Swaminathan Research Foundation at

Chennai.

Another factor that contributes to the success of HUL is its massive and efficient distribution

system. The operation involves 2.000 suppliers and associates and 7.000 stockists and agents.

Its operations are spread across 70 locations in India. There are around 100 factories. of which

28 are in backward areas. In the recent years most of HUL's major investments have been in acategory backward areas or no-industrial districts. A few such areas where investments have

been made are Khamgaon and Yavatmal in Maharashtra, Chhindwara in Madhya Pradesh, Orai

and Sumerpur in Uttar Pradesh, Dabgram in West Bengal, Silvassa in Dadra and Nagar Haveli

and Pondicherry. Many of HUL's factories including export oriented units are ISO 9002 certified.

Some of these, like the Khamgaon soap plant and the Sumerpur detergent bar unit, have been

recognized as the best in the Unilever Group. To add to its distribution system, HUL has even

acquired sick enterprises in Mangalore, Rajpura and Gajraula and converted them into viable

operations. HUL has over 36.000 employees, and has created 2 lakh indirect jobs.

HUL has an export portfolio of soaps. detergents. tea. tomato-based products. cosmetics. Agro products, leather products and marine products, carpets, chemicals and fatty acids and castor

oil. Castor oil is one of the biggest export products and the company supplies 30% of the world

demand. It is also the largest exporter of tea and branded fast moving consumer goods. HUL's

export turnover in the year 1999 was Rs. 1.803 crores. HUL is one of the country's five biggest

exporters and has been recognized as a star trading house by the Government of India. It is a net foreign exchange earner. Due to its outstanding performance in exports of castor seeds, castor oil and its derivatives. HUL received the Globe oil Gold Award. The company also received the Silver Shield from Federation of Indian Export Organization (FIEO) for "Outstanding Export Performance in Superstar Trading Housing Category" for the year 1996-97.COMPETITION IN THE FMCG MARKET

Five main competitive strategies are: Overall low cost leadership strategy

Best cost provider's strategy

Broad differentiation strategy

Focused low cost strategy

Focused differentiation strategy

Here competitive strategy varies from sector to sector and company to company. Thus, it is not easy to predict a single or to find a single strategy for the whole sector. When we come on to FMCG Sector main strategies lay behind market strategies, cost, and quality strategies. Here in this report you are going to get information about such type of strategies of FMCG giants.

Competitive Strategies and Comparison with ITC HUL (Hindustan Unilever Ltd)

This Company is earlier known as Hindustan Lever Ltd. This is India's largest FMCG sector company with all type of household products available with it. It has Home & Personal Care products, and also food and Water Purifier available with it. According to Brand Equity, HUL has largest no of brands in most trusted brands list 16 of HUL's brands featured in AC-Nielson Brand Equity list of 100 most trusted brands in 2008 in an annual survey. For the entire year ending March - 2009 net turnover of company is Rs. 20'239.33 Crore which is 47.99% higher than 31st December 2007's Rs. 13675.43 Crore driven mainly by domestic FMCG's with net profit stood at Rs. 2'496.45 Crore.Products of HUL are: Annapurna; Ayush; Axe; Breeze; Bru; Brooke bond; Clinic; Dove; Fair & Lovely; Hamam; Liril; Lux; Pears; Ponds; Pepsodent; Pureit; Rexona; Rin; Sunlight; Surfexcel; Vaseline; Wheel.

ITC Limited

This Company was earlier known as Imperial Tobacco Company of India Ltd. It is currently headed by Yogesh Chander Deveshwar. Company mainly operates in the industry like Tobacco, Foods, Hotels, Stationary and Greeting Cards with the major products constitutes Cigarettes, packed foods, hotels, and apparels. For the entire year ending Mar-2009 the turnover of company is at Rs. 15388 Crore which is 10.3% higher than previous year's Rs. 13947.53 Crore, driven mainly by robust 20% growth in non cigarette FMCG business with net profit stood at Rs. 3324 Crore.

Analysis of Both Companies

HUL & ITC are major companies in FMCG market in India. When we compare both companies on the basis of their strategies i.e., their competitive strategies in the present market. When we look at the present segment breakup for both of the companies then we came to know that their different products vary too much in the market.

Now let us take a comparative analysis of both the companies under some heads:

HUL

Hindustan Unilever (HUL) is the largest pure-play FMCG Company in the country and has one of the widest portfolio of products sold via a strong distribution channel. It owns and markets some of the most popular brands in the country across various categories, including soaps, detergents, shampoos, tea and face creams.

ITC

ITC is not a pure-play FMCG company, since cigarettes is its primary business. It is diversifying into non-tobacco. FMCG segments like foods, personal care, paper products, hotels and agri-business to reduce its exposure to cigarettes.

Performance

After stagnating between 1999 and '04, the company is back on the growth track. In the past three years, till 2008 HUL's net sales have witnessed a CAGR of 11%, while net profit has posted a CAGR of 17%. Despite diversification, ITC's reliance on cigarettes is still huge. The tobacco business contributes 40% to its revenues, and accounts for over 80% of its profit. This cash-generating business has enabled it to take ambitious, but expensive bets in new segments and deliver modest profit growth.Overall Strategy:

HUL always believes in customer friendly products with major emphasis on low cost overall without compromising on the quality of the product. They are leveraging the capabilities and scale of the parent company and focusing on the value of execution. The entire product portfolio is also being tweaked to include premium offerings such as Pond's Age Miracle and dove shampoo in skin and hair care. HUL introduced Project Shakti to penetrate the rural market.

ITC is focusing on delivering value at competitive prices. Its tremendous reach through extensive distribution chain has been a competitive advantage. Additionally, the company's e-choupal model for direct procurement is well known under which ITC partners with over 100,000 farmers for spices and wheat procurement and an even larger number for oilseeds. This kind of rural pedigree is hard to beat.

Growth DriversHUL has been launching new products and brand extensions, with investments being made towards brand-building and increasing its market share. HUL is also streamlining its various business operations, in line with the One Unilever' philosophy adopted by the Unilever group worldwide. Introduction of premium products and addition of new consumers via market expansion will be HUL's growth drivers. ITC's backward integration to ensure that its products pass efficiently from the farms to consumers has helped it to cut down supply and procurement costs. ITC's non-cigarette FMCG business leverages the large distribution network the company has developed by selling cigarettes over the years. A rich product mix, along with ramp-up of investments in its new sectors, will be instrumental in charting ITC's growth path.

Risk for both the companies For HUL Being an MNC operating in India, HUL is more conservative in its strategies than its Indian counterparts. Moreover, given increasing competition, it faces the risk of being overtaken by domestic players in various categories. Prolonged inflation may lead to margin contraction, in case HUL is not able to pass on this burden to consumers. The company's large size also poses a problem, since it does not give HUL the agility to address the competition it faces from national and regional players.

For ITC

Increased regulatory clamps on tobacco, along with rising tax burden, pose a business risk for ITC. So, it has started an ambitious diversification plan, which has its own set of risks. With its foray into the conventional FMCG space, ITC has entered the high-clutter branded products market. This will burden its resources in terms of ad spend and brand-building. Creating brand recall and building market share in new products are ITC's key challenges. Export ban and rising crop prices pose a threat for its agri-business, taxing its margins.MARKETING

The company has a strong brand equity which gives it credibility and respect among its peers

in the market. It has even created a positive motivational climate in the organization as employees take pride in remaining associated with it. It attracts the best talent and inspires respect among industry professionals. Pursuing aggressive marketing strategies, HUL continues to be India's most admired marketing company in the FMCG sector. HUL has in fact emerged as one of Asia's most admired companies. HUL continued to be the top advertising spender.Brand Portfolio

HUL, like its parent brand Unilever, plans to prune its brands and focus on the top 30 out of a total 110brands. These top 30 brands contribute more than 75% of the turnover. The rest will either be dropped sold, migrated or continued as regional brands. HUL is not planning to vacate any category it is present in. and is only eliminating brands. With the rationalising of these brands an enormous simplification is expected to take place. According to Chairman, Banga "Because you cut down on the number of SKU's, the supply chain gets simplified and that saves costs". The company plans to support the power brands with strong advertising.

Brands which contribute to about 25% of HUL's turnover have been classified into three groups.

First, they are the 'regional jewels', that is, brands which are exceptionally strong in certain

geographic areas. Hamam, for instance, gets about 60% of its volumes from Tamil Nadu, where

it has more than 30% market share. HUL will keep such brands as purely regional brands, and

support them heavily in these limited geographies. HUL, though tight lipped about its power

brands gameplan, has started to announce its list of casualties, or brands which are both small

and unprofitable, and are to be discontinued or sold off. HUL has delisted two toothpaste

variants, Close-Up Renew and Close-Up Oxyfresh, which are off the shelves, the washing

powder Revel and the rural toothpaste Aim which will also go off the shelves soon. Breeze, a

mass market brand in the toiletries market is growing at 50% plus per annum. Hence, the

company plans to phase out the other mass market brand Jai soap, which is now being supported lesser and lesser. Another brand that might be phased out is Moti soap which sells only in one or two states and just about 5,000 tonnes ayear, mostly during the Diwali season. Among the emerging categories Rexona and Axe deodorants are the power brands. Rexona has been used to build the deodorant market by HUL. Axe, though launched only last year, has been doing well. However Denim and Impulse are likely to go since they have not fared well in the market. Banga explains, "Whenever you have the same benefit and same price point theres no advantage to me to carry two brands. So what we would do is to merge those brands with some of the 30". The company through intelligent communication and use of pack graphics intends to migrate the consumers of the phased out brands to existing brands.HUL has designed the power brand portfolio in such a way that the Company has a presence in

all categories and key consumer segmentsWorking for a Social CauseHUL is a socially responsive organization. HUL believes that "an organization's worth is equally reflected by the service it renders to the community". HUL has contributed to the society in many ways. Through different projects, it provides care for HIV positive patients, education and support for children with challenges, a hospice for dying destitute, basic education for children in rural areas, and support to government relief measures in natural calamities.HUL shows more interest in CSR also as-

From 2004 to 2008 it has reduced the emission of Carbon di-oxide by more than 25% in the manufacturing.

HUL follows 5 R strategies to deal with the Green House Gases (GHG): Reduce

Re-Use

Recycle

Recover

Renew

HUL uses Agriculture wastages as the fuel (Ground nut shells, bagasse, saw dust, Coconut shells, cashew etc)

DOMEX, a product of HUL is planning to sponsor the world toilet day on the 19th November every year.

PROJECTS under taken by HUL Lifebuoy Swasthya ChetnaThe rural health and hygiene initiative was launched in 2002 with the objective

of spreading awareness on the importance of washing hands with soap.

This programme has reached around 120 million people in over 50,000 villages

across India.

Project ShaktiProject Shakti turns rural women into entrepreneurs who sell HUL products.

They work with Shakti vanis (communicators) who help promote good health

and hygiene practices in rural areas. The project now touches the lives of over

45,000 women across135,000 villages.As competition is increasing day by day, its difficult to maintain the leader position & to further strengthen the distribution network HUL made a project called project SHAKTI which will serve the following purpose:

A) To Reach: Small, scattered settlements and poor infrastructure make distribution difficult.

Over 500,000 villages not reached directly by HUL.

B) To Communicate: Low literacy hampers effectiveness of print media.

Poor media-reach: 500 million Indians lack TV& radio.

C) To Influence: Low category penetration, consumption.

D) Awareness: Per capita consumption in Unilever categories is 33% of urban level.

Project Shakti

HUL soon realized that although it was enjoying a greater penetration in the rural market when compared with its competitor such as Nirma and ITC, its direct reach was restricted to only 16%. The FMCG giant was desperate to increase this share. HUL saw its dream fulfillment in the vast Indian rural market. The company was already engaged in rural development with the launch of the Integrated Rural Development Programme in 1976 in the Etah district of Uttar Pradesh. This program was in tandem with HUL's dairy operations and covered 500 villages in Etah. Subsequently, the company introduced similar programs in adjacent villages. These activities mainly aimed at training farmers, animal husbandry, generating alternative income, health & hygiene and infrastructure development. The main issue in rural development was to create income-generating prospects for the poor villagers. Such initiatives, linked with the company's core business, became successful and sustainable and proved to be mutually beneficial to both the company and its rural customers. However much more remained to be done.Project Shakti was conceived following the pioneering work carried out by Grameen Bank of Bangladesh , Self Help Groups (SHGs) of rural women were formed by several institutions, NGOs and government bodies in villages across India. This group of usually 15 members contributed a small amount of money to a common pool and then offered a micro-credit to a member of the group to invest in a commonly approved economic activity. Partnering with these SHGs, HUL started its Project Shakti in Nalgonda district of Andhra Pradesh in 50 villages in the year 2000. The social side of the Project Shakti was that it was aimed to create income-generating capabilities for underprivileged rural women, by providing a sustainable micro enterprise opportunity, and to improve rural living standards through health and hygiene awareness. Most SHG women viewed Project Shakti as a powerful business proposition and are keen participants in it. There after it was extended in other states with the total strength of over 40,000 Shakti Entrepreneurs.

HUL offered a wide range of products to the SHGs, which were relevant to rural customers. HUL invested significantly in resources who work with the women on the field and provide them with on-the-job training and support. HUL provided the necessary training to these groups on the basics of enterprise management, which the women need to manage their enterprises. For the SHG women, this translated into a much-needed, sustainable income contributing towards better living and prosperity. Armed with micro-credit, women from SHGs become direct-to-home distributors in rural markets.

FINANCIAL PERFORMANCE from 2002 - 2012

Strategic growth summary of HUL HUL prioritized opportunities which build upon the existing assets and capabilities. It avoided spreading their management thinly. For example: HUL first made its sales and distribution channel & supply chain management in manufacturing and selling wheat flour and utilized it into the selling breads produced by wheat flour.

HUL is more focused on the innovations Example: In 1995 launched KISSAN ANNAPURNA staple foods with the message staple food including iodized salt

Serving Rural population: In 2000 the 32% of the sales were from rural sector but in 2010 it is more than 50%.

It follows direct communication from the customers.

It believes in expanding the portfolio.

Each category has a different set of supply chain, production and consumer decision making process issuing associated with it.

Strategies - Market entry(Kissan Annapurna iodized salt)

In 1995 HUL launched Kissan Annapurna iodized salt at that time only 10% of 6.5 million ton of salts were branded and refined HUL identified it and launched the KISSAN ANNAPURNA SALT.

Firstly it launched in the few cities of the country for test marketing and then for all.

Shifted from purity- a product attribute to Health consumer benefit (As a positioning strategy)

Tried to shift the consumers from unbranded to brand.

Started Using IODINE as a marketing strategy as there were other salts including iodine but no one was focused on that. HUL started it.

Started endorsement through trusted government agencies.

In 2002 it has made iodine patented in 80 countries.

Strategic Shifts In the past 10 years, HUL has made four shifts in its business strategy, targeted at boosting growth and reach

POWER BRANDS: Strategy in 2000. Focusing on fewer brands, 30 of them, and showering marketing attention on them.

MASSTIGE: Strategy in 2005-06. Making premium brands (prestige)

attainable for a larger section of consumers (mass).

ONE UNILEVER: Strategy in 2007. Building leadership position in fast-growing markets.

PUMP UP THE VOLUMES: Strategy in 2010. Global CEO Paul Polman is pushing the Indian operations chasing value growth to deliver on the volumes as well.

Conclusion & RecommendationsHUL's up-and-running business model is a treat for investors seeking exposure in the FMCG segment. The company has delivered in the past and has the potential to do better in future. In short term. HULs growth story is evolving.According to us the company should continue with their CSR and also continue with their strategies. The thing that needs to be changed is that, while HUL should come up with the new strategies that could take the new product forward to create a new segment. A recommendation For HUL is that it should focus on rural area more.Bibliographywww.hll.comwww.google.comwww.hul.comwww.projectshakti.comwww.moneypore.comwww.wikipedia.comVisited Company and met Mrs.Trupti Prabhu Desai

Team Leader

Territory Sales Manager

GM

VP

Sr. Sales Manager

Area Sales Manager

Sales Executive

HUL

Redistribution Stockiest

C&F Agents

Whole sellers

Rural Retailer

Urban Retailer

CUSTOMERS

This is to certify that

Ms. Aditi Asolkar 12H04 1st Year student of MHRDM,

Jamnalal Bajaj Institute of Management Studies

has successfully completed the Managerial Economics project

titled Hindustan Unilever Limited

under the guidance of Professor Varsha Malawade, JBIMS

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