Marketing Strategies of Hindustan Unilever Limited

Running Head: MARKETING
HINDUSTAN UNILEVER LIMITED
PRINCIPLES OF MANAGEMENT
REPORT
Student
6/15/2019

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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.

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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

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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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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

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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.