Marketing Strategies of Hindustan Unilever Limited
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This report evaluates the marketing strategies of Hindustan Unilever Limited (HUL) and compares them with its biggest rival Procter and Gamble. It discusses the modern marketing models used to analyze the strategies of HUL, its financial status, ethical and social analysis, and sustainability mission and vision. The report also covers the history of HUL, its portfolio of brands, and its pricing strategy. The target of HUL is to outreach every segment of consumers and to promote sustainable development.
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Running Head: MARKETING
Hindustan unilever limited
PRINCIPLES OF MANAGEMENT
REPORT
Student
6/15/2019
Hindustan unilever limited
PRINCIPLES OF MANAGEMENT
REPORT
Student
6/15/2019
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MARKETING
1
Executive Summary
Marketing is a way of satisfying the needs and wants of the customers by delivering the best
quality products to them. To reach the consumer at the right time, the company practices various
marketing strategies. In a similar way, HUL, which most powerful company of FMCG, has
adopted a marketing model of Porter’s Five Forces and Ansoff Matrix. Through its assistance,
the company has evaluated its strengths and weakness and while following the model it
compared its strategies with its biggest rival Procter and Gamble.
Therefore, the focus of the report is to evaluate the performance of HUL in comparison to the
current marketing system and what are innovating ways, which a company can adopt to fulfill
the needs of the consumer while achieving its economic goal.
1
Executive Summary
Marketing is a way of satisfying the needs and wants of the customers by delivering the best
quality products to them. To reach the consumer at the right time, the company practices various
marketing strategies. In a similar way, HUL, which most powerful company of FMCG, has
adopted a marketing model of Porter’s Five Forces and Ansoff Matrix. Through its assistance,
the company has evaluated its strengths and weakness and while following the model it
compared its strategies with its biggest rival Procter and Gamble.
Therefore, the focus of the report is to evaluate the performance of HUL in comparison to the
current marketing system and what are innovating ways, which a company can adopt to fulfill
the needs of the consumer while achieving its economic goal.
MARKETING
2
Contents
Introduction............................................................................................................................................3
History of the largest consumer goods company – HUL..................................................................3
Sustainability Mission and Vision.....................................................................................................4
A. Modern Marketing Models to analyze the strategies of HUL.........................................................5
1. Porters 5 Forces:..........................................................................................................................6
I. Competitive Rivalry:...............................................................................................................7
I. Supplier Power:.......................................................................................................................9
II. The Threat of Substitution:....................................................................................................10
III. The Threat of New Entry:......................................................................................................11
IV. Buyers Behavior:...................................................................................................................11
V. Segment and Targeting..........................................................................................................12
B. The Financial status of HUL......................................................................................................13
C. Analysis of Ethical, Social and Sustainability...............................................................................15
D. Comparison of HUL and Nestle....................................................................................................17
HUL.................................................................................................................................................17
NESTLE..........................................................................................................................................17
Conclusion...........................................................................................................................................19
Bibliography........................................................................................................................................20
2
Contents
Introduction............................................................................................................................................3
History of the largest consumer goods company – HUL..................................................................3
Sustainability Mission and Vision.....................................................................................................4
A. Modern Marketing Models to analyze the strategies of HUL.........................................................5
1. Porters 5 Forces:..........................................................................................................................6
I. Competitive Rivalry:...............................................................................................................7
I. Supplier Power:.......................................................................................................................9
II. The Threat of Substitution:....................................................................................................10
III. The Threat of New Entry:......................................................................................................11
IV. Buyers Behavior:...................................................................................................................11
V. Segment and Targeting..........................................................................................................12
B. The Financial status of HUL......................................................................................................13
C. Analysis of Ethical, Social and Sustainability...............................................................................15
D. Comparison of HUL and Nestle....................................................................................................17
HUL.................................................................................................................................................17
NESTLE..........................................................................................................................................17
Conclusion...........................................................................................................................................19
Bibliography........................................................................................................................................20
MARKETING
3
Introduction
History of the largest consumer goods company – HUL
Started as a subsidiary by the Unilever, HUL is ruling the market of consumer’s goods from a
span of 80 years in India. It is addressed as the largest consumer goods company that is putting
an effort to bring effective changes in the lives of more than 2.5 billion humans’ beings. This
company has touched and created a unique place life of an individual. With more than 18,000
employees, the company is working with 400 brands and has acquired the market across 190
countries (Anon., 2019). In the Financial year of 2018, the Company has presented the statistics
with a great level of an annual turnover of 51 billion Euros and has shown an exceptional rise by
INR 37,660 Crores (Anon., 2019).
Thus, the company has taken an initiative to fulfill the expectations of the consumers, by
uplifting every section and to make them look most exquisite,
However, the beginning of the company was different and unique from other well-established
companies. This diversified company is a combination of three subsidiary companies that is
Hindustan Vanaspati, Level Brother and United Trader Limited, of Unilever. In 1956, since all
three companies were targeting the needs of the consumers, therefore the companies jointly
merged into one largest company that is HUL. Since Unilever is the holding company of HUL, It
holds a great level of 67.25% equity shares in the company (Anon., 2019).
This company manufactures and has attained a share in the market and distribution of consumer
goods. It serves a variety of innovative products starting from the category of home care to self-
3
Introduction
History of the largest consumer goods company – HUL
Started as a subsidiary by the Unilever, HUL is ruling the market of consumer’s goods from a
span of 80 years in India. It is addressed as the largest consumer goods company that is putting
an effort to bring effective changes in the lives of more than 2.5 billion humans’ beings. This
company has touched and created a unique place life of an individual. With more than 18,000
employees, the company is working with 400 brands and has acquired the market across 190
countries (Anon., 2019). In the Financial year of 2018, the Company has presented the statistics
with a great level of an annual turnover of 51 billion Euros and has shown an exceptional rise by
INR 37,660 Crores (Anon., 2019).
Thus, the company has taken an initiative to fulfill the expectations of the consumers, by
uplifting every section and to make them look most exquisite,
However, the beginning of the company was different and unique from other well-established
companies. This diversified company is a combination of three subsidiary companies that is
Hindustan Vanaspati, Level Brother and United Trader Limited, of Unilever. In 1956, since all
three companies were targeting the needs of the consumers, therefore the companies jointly
merged into one largest company that is HUL. Since Unilever is the holding company of HUL, It
holds a great level of 67.25% equity shares in the company (Anon., 2019).
This company manufactures and has attained a share in the market and distribution of consumer
goods. It serves a variety of innovative products starting from the category of home care to self-
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MARKETING
4
care products to food and beverage related products (Anon., 2019). This British-Dutch
production company is acquiring the great heights in the final good sector with the diverse
collection of various popular brands like Lux the beauty soap, Surf Excel that comes with the
famous tag line “Daag Achhe Hain”, and Clinic plus- the best shampoo for strong hairs it has.
There are many other famous brands, which are being endorsed by HUL and, today have become
the top preference of the consumers. As per the report published by the IBEF organization in
2017, HUL has taken over the market of shampoo with 54% (Anon., 2018). 2018, HUL has
collaborated with Vijaykant Dairy and Food products Limited and further bought their frozen
desserts commodity market, which was once used to available to the customers in the form of its
premium brand “Adityaa Milk” (Anon., 2018)
Sustainability Mission and Vision
By 2030, HUL wants to develop the business in such a way that it can leave a long lasting
impression on the environment and on society.
Like the company, its logo also symbolizes the way the company is promoting the sustainable
nourishment of human beings through its eco-friendly products (Anon., 2019). Its every word
signifies the importance of sustainable development. Attributing to this program, the company is
focusing on its consistent growth. To provide assistance in the expansion of rural areas, HUL is
creating an ample of job opportunities for the people over there so that they not only attain
financial stability but also prosper in their life.
To further, promote the program of overall development of society, the company has started
Unilever’s Sustainable Living Plan in which the raw material for the production shall be supplied
in a sustainable form (Anon., 2019). Along with the stakeholders, the company is putting
4
care products to food and beverage related products (Anon., 2019). This British-Dutch
production company is acquiring the great heights in the final good sector with the diverse
collection of various popular brands like Lux the beauty soap, Surf Excel that comes with the
famous tag line “Daag Achhe Hain”, and Clinic plus- the best shampoo for strong hairs it has.
There are many other famous brands, which are being endorsed by HUL and, today have become
the top preference of the consumers. As per the report published by the IBEF organization in
2017, HUL has taken over the market of shampoo with 54% (Anon., 2018). 2018, HUL has
collaborated with Vijaykant Dairy and Food products Limited and further bought their frozen
desserts commodity market, which was once used to available to the customers in the form of its
premium brand “Adityaa Milk” (Anon., 2018)
Sustainability Mission and Vision
By 2030, HUL wants to develop the business in such a way that it can leave a long lasting
impression on the environment and on society.
Like the company, its logo also symbolizes the way the company is promoting the sustainable
nourishment of human beings through its eco-friendly products (Anon., 2019). Its every word
signifies the importance of sustainable development. Attributing to this program, the company is
focusing on its consistent growth. To provide assistance in the expansion of rural areas, HUL is
creating an ample of job opportunities for the people over there so that they not only attain
financial stability but also prosper in their life.
To further, promote the program of overall development of society, the company has started
Unilever’s Sustainable Living Plan in which the raw material for the production shall be supplied
in a sustainable form (Anon., 2019). Along with the stakeholders, the company is putting
MARKETING
5
emphasis on the exploration of innovative ways to deal with the issues related to the misuse of
plastic in India. By 2025, to curb the usage in plastic, the company commits to improve the
packaging system by 100% reusing and recycling the plastic material used by the product-
manufacturing department (Anon., 2019).
Unquestionably, HUL is the most popular and renowned brand that has prospered in the field of
consumer goods. Through its innovative strategy, it is giving a competitive edge to other
companies. However to enhance its market strategy and to aware and encourage the society to
adopt a healthy lifestyle and sustainable living, the company has to analysis the current market
strategies, and evaluate the production capacity and financial performance of the company.
5
emphasis on the exploration of innovative ways to deal with the issues related to the misuse of
plastic in India. By 2025, to curb the usage in plastic, the company commits to improve the
packaging system by 100% reusing and recycling the plastic material used by the product-
manufacturing department (Anon., 2019).
Unquestionably, HUL is the most popular and renowned brand that has prospered in the field of
consumer goods. Through its innovative strategy, it is giving a competitive edge to other
companies. However to enhance its market strategy and to aware and encourage the society to
adopt a healthy lifestyle and sustainable living, the company has to analysis the current market
strategies, and evaluate the production capacity and financial performance of the company.
MARKETING
6
Source: (Anon., 2019)
A. Modern Marketing Models to analyze the strategies of HUL
To examine the activities of the organization, two models have been used:
Porter’s Five Forces
Ansoff Matrix
In this model with Porter’s five forces, Ansoff marketing and segment and targeting
technique is followed to perform the analysis.
1. Porters 5 Forces:
Proposed by M. Porter in 1979, it is a combination of 5 industry areas that influences the
marketing strategy of any company. It highlights the magnitude of the competitive situation and
its profitability in the sector. The purpose of applying this model is to identify the competition
level and environment of the company so that it can identify the debility and strength. The five
key areas, which are used to determine the strategy of HUL, are:
6
Source: (Anon., 2019)
A. Modern Marketing Models to analyze the strategies of HUL
To examine the activities of the organization, two models have been used:
Porter’s Five Forces
Ansoff Matrix
In this model with Porter’s five forces, Ansoff marketing and segment and targeting
technique is followed to perform the analysis.
1. Porters 5 Forces:
Proposed by M. Porter in 1979, it is a combination of 5 industry areas that influences the
marketing strategy of any company. It highlights the magnitude of the competitive situation and
its profitability in the sector. The purpose of applying this model is to identify the competition
level and environment of the company so that it can identify the debility and strength. The five
key areas, which are used to determine the strategy of HUL, are:
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MARKETING
7
Source: (Anon., 2019)
I. Competitive Rivalry:
HUL is one of the powerful companies that have a portfolio of several brands. However, like
every company, HUL also operates in the market where competition is on the higher side. Hence,
one of the strong competitors of the company is Procter and Gamble products as both of them
manufactures and operates in similar categories that are demanded in every retail outlet. Its other
rivals are L’Oreal, ITC limited, and Colgate-Palmolive.
Products and Services:
To reach its customers and to attain the overall market of consumer goods, HUL is has
been working with most demanded brands like Lux, Sunsilk, and Magnum. It is giving its
7
Source: (Anon., 2019)
I. Competitive Rivalry:
HUL is one of the powerful companies that have a portfolio of several brands. However, like
every company, HUL also operates in the market where competition is on the higher side. Hence,
one of the strong competitors of the company is Procter and Gamble products as both of them
manufactures and operates in similar categories that are demanded in every retail outlet. Its other
rivals are L’Oreal, ITC limited, and Colgate-Palmolive.
Products and Services:
To reach its customers and to attain the overall market of consumer goods, HUL is has
been working with most demanded brands like Lux, Sunsilk, and Magnum. It is giving its
MARKETING
8
services in more than 20 categories ranges from home care to food and beverages.
However, its competitor Procter and Gamble who has empowered more than 4.4 billion
people are majorly focusing on home care and personal care products (Anon., 2019). In
December 2018, to promote the sports activities among the youth, Hul has merged with
GSK health care consumer company (Anon., 2019), which endorses famous brands like
Horlicks and Boost. To make the products available in the global market, HUL
manufactures and distributes its products through the retail outlets. This strategy has been
performed with the support of 3500 consumer who has, through their positive review and
mouth publicity help the HUL in the marketing of its product.
Source: (Anon., 2019)
8
services in more than 20 categories ranges from home care to food and beverages.
However, its competitor Procter and Gamble who has empowered more than 4.4 billion
people are majorly focusing on home care and personal care products (Anon., 2019). In
December 2018, to promote the sports activities among the youth, Hul has merged with
GSK health care consumer company (Anon., 2019), which endorses famous brands like
Horlicks and Boost. To make the products available in the global market, HUL
manufactures and distributes its products through the retail outlets. This strategy has been
performed with the support of 3500 consumer who has, through their positive review and
mouth publicity help the HUL in the marketing of its product.
Source: (Anon., 2019)
MARKETING
9
Source: (Anon., 2019)
Pricing strategy:
Hindustan Unilever Limited understands its responsibility towards its consumers by serving the
best quality product. Moreover, it can be observed that, to cover the entire market company it has
launched a sashes system in personal care products as it is economical and a customer can
demand more as per his /her requirement. To give the cutthroat competition and to target every
segment, it has adopted a unique pricing strategy like offering a 20% discount on Surf Excel
detergent on the 2kg pack. Its strong rival Procter and Gamble have followed low pricing
strategies to outreach the consumers.
Consumer Loyalty and Quality services: Since Company fosters the idea of enhancing
the standard of living, therefore it targets all segments and classes. Furthermore, it has
proposed the strategy, which is suitable for the audience and introduced products into
different sizes like Lux at Rs 5. HUL, for the consistent growth, manufactures user-
9
Source: (Anon., 2019)
Pricing strategy:
Hindustan Unilever Limited understands its responsibility towards its consumers by serving the
best quality product. Moreover, it can be observed that, to cover the entire market company it has
launched a sashes system in personal care products as it is economical and a customer can
demand more as per his /her requirement. To give the cutthroat competition and to target every
segment, it has adopted a unique pricing strategy like offering a 20% discount on Surf Excel
detergent on the 2kg pack. Its strong rival Procter and Gamble have followed low pricing
strategies to outreach the consumers.
Consumer Loyalty and Quality services: Since Company fosters the idea of enhancing
the standard of living, therefore it targets all segments and classes. Furthermore, it has
proposed the strategy, which is suitable for the audience and introduced products into
different sizes like Lux at Rs 5. HUL, for the consistent growth, manufactures user-
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MARKETING
10
friendly products at the feasible rates without making any compromises in its. Procter and
Gamble are serving various healthy products to consumers.
I. Supplier Power:
No. of Suppliers and its Size:
One of the main objectives of Hul is to promote and achieve 100% sustainability through its
products. To attain this practice, the company is obtaining raw materials like tea from Kenya. To
promote and develop rural India, the company has been working with the marginal and small
farmers. The products of the company are demanded on the Global level and through its
initiative and best quality consumer goods until now it has attracted more than 1,50,000
customers through is 60,000 products. Around 250 factories are employed in the activities of the
production who are with their exceptional speed are manufacturing 1, 30,000 tea bags as every
minute counts (Anon., 2019).
II. The Threat of Substitution:
Source: (Pengonda, 2019)
10
friendly products at the feasible rates without making any compromises in its. Procter and
Gamble are serving various healthy products to consumers.
I. Supplier Power:
No. of Suppliers and its Size:
One of the main objectives of Hul is to promote and achieve 100% sustainability through its
products. To attain this practice, the company is obtaining raw materials like tea from Kenya. To
promote and develop rural India, the company has been working with the marginal and small
farmers. The products of the company are demanded on the Global level and through its
initiative and best quality consumer goods until now it has attracted more than 1,50,000
customers through is 60,000 products. Around 250 factories are employed in the activities of the
production who are with their exceptional speed are manufacturing 1, 30,000 tea bags as every
minute counts (Anon., 2019).
II. The Threat of Substitution:
Source: (Pengonda, 2019)
MARKETING
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Its biggest threats are Patanjali and P&G products.
Procter and Gamble
In the market of personal Hygiene care, Procter and Gamble have shown a tremendous growth
by 8%. During the quarter, it has done progress in female sanitation and health maintenance
products (Anon., 2019). To give a competitive edge to the other entities, the firm believes in
delivering innovative products, which can improve the lifestyle and strengthen the relationship
with the culture. To eradicate the cultural differences, it is running a campaign “My Black is
Beautiful” and is promoting the interest of black consumers (Graham, 2019).
Dabur
Dabur has also improved its performance and with the average production of 14% in the
beginning quarters of 2019, the company might outperform other FMCG companies. To fulfill
the needs of the consumers in a more economical way, it has adopted the strategy of procuring
the raw material in the most feasible way.
III. The Threat of New Entry:
However, Hul has taken over the market of consumers sector, but with the expansion of this
industry and variations in preference of the consumers, the competition has risen. The new
competitor of Hul is Patanjali.
Patanjali:
Patanjali Ayurveda is an Indian consumer goods company, which has entered with a natural and
organic product to give the essence of natural ingredients. The company has launched various
herbal products, and covered the entire product categories like homecare, and health care. In the
11
Its biggest threats are Patanjali and P&G products.
Procter and Gamble
In the market of personal Hygiene care, Procter and Gamble have shown a tremendous growth
by 8%. During the quarter, it has done progress in female sanitation and health maintenance
products (Anon., 2019). To give a competitive edge to the other entities, the firm believes in
delivering innovative products, which can improve the lifestyle and strengthen the relationship
with the culture. To eradicate the cultural differences, it is running a campaign “My Black is
Beautiful” and is promoting the interest of black consumers (Graham, 2019).
Dabur
Dabur has also improved its performance and with the average production of 14% in the
beginning quarters of 2019, the company might outperform other FMCG companies. To fulfill
the needs of the consumers in a more economical way, it has adopted the strategy of procuring
the raw material in the most feasible way.
III. The Threat of New Entry:
However, Hul has taken over the market of consumers sector, but with the expansion of this
industry and variations in preference of the consumers, the competition has risen. The new
competitor of Hul is Patanjali.
Patanjali:
Patanjali Ayurveda is an Indian consumer goods company, which has entered with a natural and
organic product to give the essence of natural ingredients. The company has launched various
herbal products, and covered the entire product categories like homecare, and health care. In the
MARKETING
12
financial year of 2018, the company has shown an unexpected growth and in no time, it became
the household name and consumer’s top choice (Aute, 2019).
The goal of a company is to increase awareness regarding the benefits of a healthy life and
motivate the customers to avoid the consumption of an artificial and inferior quality product.
With its innovative strategy of economical price-rate, the company is reaching its target segment.
In the initial year of its establishment, the company has given a cutthroat competition to other
FMCG companies. To meet the expectations of the consumer it is improving its existing
products with the various marketing strategy. However, its rivals like Hul are formulating the
plan to eliminate it. To compete with this Ayurveda company, Hul has re-entered with natural
brands like Ayush (Anon., 2018).
IV. Buyers Behavior:
To become the most demanded and popular company among the consumers the company is
adopting the strategy of social media. Now with the assistance of media, the company can
connect with respective buyers and through the latest trends, it can understand the changing
wants of the consumers. Social media best example is Digital marketing on social sites, like
Instagram, Twitter, and link din. Therefore, it assists the companies in increasing their brand
awareness. However, the commercialization on social media both advantages and disadvantages.
In the same way, Company had faced negative consequences when it advertised the Red label tea
highlighting the event of Indian traditional fairs that is “Kumbh ka Mela. In that, the company
unintentionally harmed the sentiments of Indian society by describing the event, where the male
child wants to leave his parents in the large crowd until its awareness hit him off. The consumer
wrongly perceived this message on the media. On Twitter, people targeted the company (Tiwari,
12
financial year of 2018, the company has shown an unexpected growth and in no time, it became
the household name and consumer’s top choice (Aute, 2019).
The goal of a company is to increase awareness regarding the benefits of a healthy life and
motivate the customers to avoid the consumption of an artificial and inferior quality product.
With its innovative strategy of economical price-rate, the company is reaching its target segment.
In the initial year of its establishment, the company has given a cutthroat competition to other
FMCG companies. To meet the expectations of the consumer it is improving its existing
products with the various marketing strategy. However, its rivals like Hul are formulating the
plan to eliminate it. To compete with this Ayurveda company, Hul has re-entered with natural
brands like Ayush (Anon., 2018).
IV. Buyers Behavior:
To become the most demanded and popular company among the consumers the company is
adopting the strategy of social media. Now with the assistance of media, the company can
connect with respective buyers and through the latest trends, it can understand the changing
wants of the consumers. Social media best example is Digital marketing on social sites, like
Instagram, Twitter, and link din. Therefore, it assists the companies in increasing their brand
awareness. However, the commercialization on social media both advantages and disadvantages.
In the same way, Company had faced negative consequences when it advertised the Red label tea
highlighting the event of Indian traditional fairs that is “Kumbh ka Mela. In that, the company
unintentionally harmed the sentiments of Indian society by describing the event, where the male
child wants to leave his parents in the large crowd until its awareness hit him off. The consumer
wrongly perceived this message on the media. On Twitter, people targeted the company (Tiwari,
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2019) and protested with the #BoycottHindustanUnilever. For such kind promotion, its rival
Patanjali Ayurveda Ltd took this as an opportunity by blaming the company for being selfish.
Source: (Anon., 2017)
V. Segment and Targeting
Consumers’ goods are those products, which are used by all people on a daily bases. Therefore,
the target of HUL is to out-reach every segment. To publicize its product in all over India, the
company has started an awareness program in India regarding sanitation, and efficient utilization
of while using water for multipurpose. Through this great initiative, it has covered more than
150 million people and still growing to make overall changes in the environment and with their
innovative products, Unilever is aiming to provide support to more than billion communities on
the global level in overcoming diseases like diarrhea (Anon., 2019). The company focuses on the
latest upcoming trends and customizes the products according to the wants of the consumer. For
the rural community, the company is expanding its distributional channels so that it can enter and
13
2019) and protested with the #BoycottHindustanUnilever. For such kind promotion, its rival
Patanjali Ayurveda Ltd took this as an opportunity by blaming the company for being selfish.
Source: (Anon., 2017)
V. Segment and Targeting
Consumers’ goods are those products, which are used by all people on a daily bases. Therefore,
the target of HUL is to out-reach every segment. To publicize its product in all over India, the
company has started an awareness program in India regarding sanitation, and efficient utilization
of while using water for multipurpose. Through this great initiative, it has covered more than
150 million people and still growing to make overall changes in the environment and with their
innovative products, Unilever is aiming to provide support to more than billion communities on
the global level in overcoming diseases like diarrhea (Anon., 2019). The company focuses on the
latest upcoming trends and customizes the products according to the wants of the consumer. For
the rural community, the company is expanding its distributional channels so that it can enter and
MARKETING
14
acquire the market of rural people. To connect with the rural consumers, HUL is advertising,
promoting the interest of the people so that people from all over India come together, and help
the society to grow.
B. The Financial status of HUL
Source: (Anon., 2019)
To make the product successful, more than 18000 employees are putting their efforts across 28
manufacturing unit. The products of the company are stored in the warehouse that is further then
marketed to potential customers. From the stage of procurement to the distribution of good,
funds play an important role.
However, to manage the finance in the company, there is a separate financial management
department, which looks after the allocation of funds. As per the financial report of HUL 2018-
2019, the local consumer trading has shown growth by 12% thus the financial activities of the
entity have empowered the company in the development of a winning plan for attaining the
goals. Positive changes can be observed in the utilization of the funds as the capital expense of
14
acquire the market of rural people. To connect with the rural consumers, HUL is advertising,
promoting the interest of the people so that people from all over India come together, and help
the society to grow.
B. The Financial status of HUL
Source: (Anon., 2019)
To make the product successful, more than 18000 employees are putting their efforts across 28
manufacturing unit. The products of the company are stored in the warehouse that is further then
marketed to potential customers. From the stage of procurement to the distribution of good,
funds play an important role.
However, to manage the finance in the company, there is a separate financial management
department, which looks after the allocation of funds. As per the financial report of HUL 2018-
2019, the local consumer trading has shown growth by 12% thus the financial activities of the
entity have empowered the company in the development of a winning plan for attaining the
goals. Positive changes can be observed in the utilization of the funds as the capital expense of
MARKETING
15
the entity has been reduced to 728 Crores as compared to the last year expenditure. The financial
year 2018-2019 was a profitable year for the company as it earned the surplus of Rs. 3,688
Crores as compared to the annual report of 2017-2018. In 2019 the trading power of the
company has risen and now 657.5 times and the stock value of the company has appreciated with
28% (Anon., 2019). However, Fluctuations can be observed due demand and the consumption
of the products. The company has accomplished the target of Rs.6000 Crores revenue in the
previous year.
Source: (Somvanshi, 2019) Source: (Anon., 2019)
In the last year, with the great profitability, the company announced the final dividend. In the
AGM, all the members took a decision and agreed on the dividend of 13 per share. To perform in
a cost-effective way, the company has also started a cost-saving program where it can train the
employees and impart the knowledge on the systematic and efficient way of implementing the
plan. To deal with the complexities of the business the company is developing an internal
monitor structure, therefore, to examine the system, an HUL employs the auditor that internally
verifies the system. These systems are checked on a daily basis.
15
the entity has been reduced to 728 Crores as compared to the last year expenditure. The financial
year 2018-2019 was a profitable year for the company as it earned the surplus of Rs. 3,688
Crores as compared to the annual report of 2017-2018. In 2019 the trading power of the
company has risen and now 657.5 times and the stock value of the company has appreciated with
28% (Anon., 2019). However, Fluctuations can be observed due demand and the consumption
of the products. The company has accomplished the target of Rs.6000 Crores revenue in the
previous year.
Source: (Somvanshi, 2019) Source: (Anon., 2019)
In the last year, with the great profitability, the company announced the final dividend. In the
AGM, all the members took a decision and agreed on the dividend of 13 per share. To perform in
a cost-effective way, the company has also started a cost-saving program where it can train the
employees and impart the knowledge on the systematic and efficient way of implementing the
plan. To deal with the complexities of the business the company is developing an internal
monitor structure, therefore, to examine the system, an HUL employs the auditor that internally
verifies the system. These systems are checked on a daily basis.
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MARKETING
16
Source: (Anon., 2019)
C. Analysis of Ethical, Social and Sustainability
HUL understands its responsibility and duties towards the environment. Therefore, in its supply
chain, it practices the strategy of reducing the emission of harmful gases like carbon dioxide. The
company has implemented this strategy and as compared to 2008 statistics, it has reduced the
burden of these poisonous emissions by 59%. The company is promoting the efficient utilization
of the water in the system and thus keeping 2008 as a base year, the water wastage in the
production activities has been reduced therefore, as well as the company has formed water
conservation in the management system.
Since the objective of the company is to promote the issue of sustainability and to develop the
rural areas, therefore, by the year 2020 its aims to achieve 100% durability in the procurement
process of unprocessed material.
16
Source: (Anon., 2019)
C. Analysis of Ethical, Social and Sustainability
HUL understands its responsibility and duties towards the environment. Therefore, in its supply
chain, it practices the strategy of reducing the emission of harmful gases like carbon dioxide. The
company has implemented this strategy and as compared to 2008 statistics, it has reduced the
burden of these poisonous emissions by 59%. The company is promoting the efficient utilization
of the water in the system and thus keeping 2008 as a base year, the water wastage in the
production activities has been reduced therefore, as well as the company has formed water
conservation in the management system.
Since the objective of the company is to promote the issue of sustainability and to develop the
rural areas, therefore, by the year 2020 its aims to achieve 100% durability in the procurement
process of unprocessed material.
MARKETING
17
Until now it has helped the society by improving the lives of more than 2.9 million human
beings For the consistent growth, it is making innovative changes in the portfolio of its product
line so that the company can serve different needs of the customer.
The company encourages an ethical practice in the workplace and performs the activities based
on the code of conduct prepared by them (Anon., 2019). It respects the rights of an individual
and secures the interest of the workers. It endeavors honesty and cooperation in the management
system. According to the ethical standards, the company regulates the attitude of its workers,
wholesalers and other stakeholders. In the business environment, HUL motivates its employees
to achieve the goals of the company with full potential so that can also meet their futuristic goals.
The Company believes that with the proper training and knowledge, employees can grow and
together they can compete with other powerful companies (Anon., 2019).
17
Until now it has helped the society by improving the lives of more than 2.9 million human
beings For the consistent growth, it is making innovative changes in the portfolio of its product
line so that the company can serve different needs of the customer.
The company encourages an ethical practice in the workplace and performs the activities based
on the code of conduct prepared by them (Anon., 2019). It respects the rights of an individual
and secures the interest of the workers. It endeavors honesty and cooperation in the management
system. According to the ethical standards, the company regulates the attitude of its workers,
wholesalers and other stakeholders. In the business environment, HUL motivates its employees
to achieve the goals of the company with full potential so that can also meet their futuristic goals.
The Company believes that with the proper training and knowledge, employees can grow and
together they can compete with other powerful companies (Anon., 2019).
MARKETING
18
D. Comparison of HUL and Nestle
18
D. Comparison of HUL and Nestle
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MARKETING
19
HUL
Products: The Company provides
a variety of products and are
currently operating with more than
400 brands. It manufactures and
provides services from different
categories like home care,
personal care, and food and
beverages. All its products are
very much popular among all the
generation. The objective of HUL
is to bring innovation to its
product. In personal care products,
to give natural care to the
customer, it has brought Lever
Ayush.
Price: It aims to cater to the needs
of every Individual. Therefore, the
company is focusing to meet the
needs of each segments and
classes. Moreover, the company
has launched it product at a
NESTLE
Product: Nestle is a food and
beverage company, which was
initially started as a dairy
business, but with the great
progress field, the company has
attained a great, market share in
other segments’ of the industry.
Currently, the company is
producing Maggie, Milky-bar, and
Bar-one. Nestle India aims to
delicious products with the
goodness of nutrition (Anon.,
2019).
Price Nestle India strives hard to
provide the best taste at affordable
prices. Through its product, Nestle
wants to increase the health
awareness among all the
generation. Since the company
19
HUL
Products: The Company provides
a variety of products and are
currently operating with more than
400 brands. It manufactures and
provides services from different
categories like home care,
personal care, and food and
beverages. All its products are
very much popular among all the
generation. The objective of HUL
is to bring innovation to its
product. In personal care products,
to give natural care to the
customer, it has brought Lever
Ayush.
Price: It aims to cater to the needs
of every Individual. Therefore, the
company is focusing to meet the
needs of each segments and
classes. Moreover, the company
has launched it product at a
NESTLE
Product: Nestle is a food and
beverage company, which was
initially started as a dairy
business, but with the great
progress field, the company has
attained a great, market share in
other segments’ of the industry.
Currently, the company is
producing Maggie, Milky-bar, and
Bar-one. Nestle India aims to
delicious products with the
goodness of nutrition (Anon.,
2019).
Price Nestle India strives hard to
provide the best taste at affordable
prices. Through its product, Nestle
wants to increase the health
awareness among all the
generation. Since the company
MARKETING
20
feasible price so that it can attract
the large number of customers and
time-to-time they launch the items
with discount rates.
Place: Today being on social
media has become common. From
kid to old generation everybody is
active on social-networking sites,
therefore to reach the customer at
the right time, it using the
platform of social media since
companies know that. Consumers
gives preference and demand only
that type of products, which is not
economical but also, fit according
to their taste.
Promotion: To make its popular
and increase their demand, in the
personal care beauty “Lux soap”
the company has collaborated with
produces the product in the bulk
huge, it can outreach to consumers
on the global level, it focuses to
provide the products at a lower
level. This type of strategy has
helped Nestle in covering its
expenditure.
Place: Through the number of
distribution channels Nestlé is
providing the goods. As per the
Kantar ranking 2018, Nestle has a
better supply management system.
Promotion: Company best product
- Maggie is everyone favorite food
item. With its 2-minute strategy, it
has reached the number of
household. However due to the
presence of lead in the Maggie, in
2015 the government banned its
20
feasible price so that it can attract
the large number of customers and
time-to-time they launch the items
with discount rates.
Place: Today being on social
media has become common. From
kid to old generation everybody is
active on social-networking sites,
therefore to reach the customer at
the right time, it using the
platform of social media since
companies know that. Consumers
gives preference and demand only
that type of products, which is not
economical but also, fit according
to their taste.
Promotion: To make its popular
and increase their demand, in the
personal care beauty “Lux soap”
the company has collaborated with
produces the product in the bulk
huge, it can outreach to consumers
on the global level, it focuses to
provide the products at a lower
level. This type of strategy has
helped Nestle in covering its
expenditure.
Place: Through the number of
distribution channels Nestlé is
providing the goods. As per the
Kantar ranking 2018, Nestle has a
better supply management system.
Promotion: Company best product
- Maggie is everyone favorite food
item. With its 2-minute strategy, it
has reached the number of
household. However due to the
presence of lead in the Maggie, in
2015 the government banned its
MARKETING
21
the film actor and actors as it
defines the beauty of women. In
2019 Lux soap was launched with
a campaign that addresses the
severe issue of cancer (Hussian,
2019).
production. Now the company has
re-launched the item with health
benefits and regained its market
share with various promotional
programs (Bhushan, 2019).
21
the film actor and actors as it
defines the beauty of women. In
2019 Lux soap was launched with
a campaign that addresses the
severe issue of cancer (Hussian,
2019).
production. Now the company has
re-launched the item with health
benefits and regained its market
share with various promotional
programs (Bhushan, 2019).
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MARKETING
22
Conclusion
From the above study, it can be concluded that marketing is a tool that can be used to evaluate
the market strategy so that the company can identify the strengths and weakness. It is the most
beneficial way of verifying future trends. These strategies have been employed in the practice to
evaluate the marketing strategy of Hul, which is the most renowned FMCG Company. In the
process of examination, two modern marketing models are used which are Porter five forces are
given by Michael Porter and Ansoff Matrix. Furthermore, in the report, we assess social
responsibility and economic performance. Hence, it can be said though HUL is performing much
better than its competitor but also due to their some advertising campaigns they are facing issues.
22
Conclusion
From the above study, it can be concluded that marketing is a tool that can be used to evaluate
the market strategy so that the company can identify the strengths and weakness. It is the most
beneficial way of verifying future trends. These strategies have been employed in the practice to
evaluate the marketing strategy of Hul, which is the most renowned FMCG Company. In the
process of examination, two modern marketing models are used which are Porter five forces are
given by Michael Porter and Ansoff Matrix. Furthermore, in the report, we assess social
responsibility and economic performance. Hence, it can be said though HUL is performing much
better than its competitor but also due to their some advertising campaigns they are facing issues.
MARKETING
23
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MARKETING
25
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25
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MARKETING
26
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26
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