Individual Market Analysis: Hindustan Unilever Limited (HUL) Report

This report provides an individual market analysis of Hindustan Unilever Limited (HUL), a leading Fast-Moving Consumer Goods (FMCG) company in India. The report begins with an executive summary and then delves into a situation analysis, highlighting HUL's market position, distribution network, and competitive landscape. It proceeds to examine three key market segments: soap and detergent, personal care, and beverages, outlining their demographic, psychographic, behavioral, and geographic characteristics. Finally, the report focuses on the marketing mix of HUL's Dove soap, detailing its product strategy, target market, advertising approach, and product variations. The conclusion summarizes HUL's performance, emphasizing its heritage, research and development, and market positioning. The report is supported by references to relevant sources, including HUL's website, Wikipedia, and various marketing journals.

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Individual Market Analysis
Hindustan Unilever Limited (HUL)
Situation, Segment and Marketing mix Analysis

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Table of Content
Particulars Page no.
Cover page 1
Executive Summary 3
Situation Analysis 4
Segment Information 5-6
Marketing Mix 6-7

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Conclusion 7
Reference 7

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Executive Summary
Hindustan Unilever Limited (HUL) is one of the popular name in First Moving Consumer Goods
or FMCG sector in India. As per an independent survey, it was found that every 9 out of 10
family use HUL product. As per HUL website, it is the largest FMCG Company in India. It has
the operation over 80 years which describes its rich heritage. It has now over 35 brands which is
spreading over 20 different category of products like soap, detergent, shampoo, skin care,
toothpaste, deodorant, tea, coffee, cosmetics, packed food item, water purifier etc. Lux, lifebuoy,
Surf excel, Fair and lovely are its well-known brands that is printed in people’s mind about its
uniqueness. HUL is basically a subsidiary of Unilever Company holding 67% of share. It has
now an employee base over 18000 and listed and traded on Bombay Stock Exchange. Sanjiv
Mehta is currently heading the organization.[www.hul.co.in]
As per the financial report of the company, it has now done a net sale over 33895 Crore INR in
the financial year 2016-17. It has achieved a net profit of 4490 Crore INR by March 2017 with
an impressive growth rate of 9%. [en.wiwkipedia.org]

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HUL has recently rated among the top-4 global companies in the list of “Global top companies
for leaders” as per Hewitt Associate. The company has succeeded enormous success because of
their mission which says about vitality of life through nutrition, hygiene and personal care that
gives people to feel good, look good and get more every time of life.
The report is based on situation analysis, three of its segmentanalysis and finally its marketing
mix strategy of one of its product.
Since HUL has wide span product line, situation analysis, segment analysis and market mix
analysis of all is not possible so I chose the three segment as Soap and detergent, personal care
and Beverage. For marketing Mix, I selected “product” as category and under that I have
selected “Soap’ as the case for product development strategy discussion.
Situation Analysis
HUL has always been in a dominating position that we can find from the fact that it is one of the
most trusted brand in country like India where diversity exists in a complicated composition. As
per a report, it has covered pan India with a distribution outlet over 6.3 million. Today it has
covered almost 1.3 billion people of the country from its offering of soap to mineral water. As
per Nielsen data, HUL is the market leader in consumer goods and its major reason is their R&D

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and their selective targeting marketing strategy. It has been following an extensive and integrated
system which is a 4 tier system. Due to 80 years of presence, they have made a strong image in
customer mind with their 3 hit advertisement strategy. Soaps and detergent segment holds
maximum business of HUL (near about 46.2%).
If we look closely to the track record of HUL as per report of HUL, they have the increasing
trend in their EBIT. Their major revenue comes from soap and detergent segment. It has now
market capitalization over 1, 88,849 Crore INR. It has also a trend of increasing in share price
over a long period.
It’s wide range of product offering, depth in product line, 4-tier supply chain, experience over 80
years and programs and initiatives like project Sakti are giving competitive advantages to HUL.
As per IBEF data, FMCG is the 4th largest sector in Indian Economy in which personal care and
household accounts 50% contribution, food and beverage 19% and health care accounts 31%. It
is now a market of $USD 49 billion. It is expecting a growth of 20% in recent years. HUL
accounts 46% in Soap and detergent segment and overall 43% in FMCG sector.
P&G, Dabur, ITC limited, Emami, Britannia and now Patanjali are the competitors of HUL in its
FMCG market who are giving tough competition to HUL and also took lead in some of its
segment in recent past.[IBEF. (n.d.).]
Segment Information

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HUL has more than 20 segments so it is not possible to look at each segment characteristics thus
we are going to focus on three major sectors of HUL which are soap and detergent, beverage
and personal care division.[Bhasin, H. (2016,)]
Soap and detergent
Soap- Demographic characteristics- For every Indian soaps available and in a wide span
network. For women, Lux and Dove are preferred and for kids Pears.
Psychographic characteristics- For freshness and hygiene loving people HUL offers Lifebuoy
and Liril.
Behavioral characteristics- For a glamourous feeling and showing, It has Hamam, Lux and Dove.
Geographic characteristics- It is based pan-India and this basis of segmentation is not applicable
here.
Detergent- Demographic characteristics- There is no specific demographic characteristics for
detergent segment.
Psychographic characteristics- For those who cares Social images go for Rin and for value
seekers wheel. For high segment, it has Surf excel matrix.
Behavioral characteristics- For emotional person, it has Surf excel as you can find from its ad
saying that stain is good.
Geographic characteristics- Not applicable due to its availability in every part.
Personal care

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Demographic characteristics- For men it has AXE deodorant, Denim saving products, Brycreem
hair cream and gel. For women it has fair and lovely, Dove skin care, Lakme products,
Tresemmeesampoo etc. and for Kids pepsodent toothpaste and many more.
Psychographic characteristics- For natural product loving it offers Indulekha oil, Hamam; For
out going it has AXE, Tresemme, Lakme, Ponds and for skin care and body care people, it has
Vasaline, Sunsilk, Ponds.[Sultane, P. (2015,)]
Behavioral Characteristics- Lever Ayush Therapy Ayurvedic products for those who wants to
keep life simple an easy with Ayurveda. For fun going nature, Brylcreem, Clinic plus, Sunsilk,
Denim products are there.
Geographic Characteristics- HUL products are available in most of parts of India.
Beverages
Demographic characteristics- For common man Annapurna salt and spices, Brooke bond tea,
Kissan products etc. For women Knorr soups and meal makers and for kids Kwality wall and
Magnum ice cream.
Psychographic characteristics- For those who wants to be slim fit especially girls, Lipton tea,
Kissan juice. Magnum ice cream for feeling of high class.
Behavioral characteristics- Beverages of HUL spreads message of purity and quality that people
trust.
Geographic characteristics- Available at each retail shop whether it’s in village or city.[Ahmad,
P. S., et.al 2004]

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Marketing Mix
Soap product Strategy of HUL[Mohankumar, T. P et.al 2010]
Dove is one the best beauty care product of HUL and it has achieved a good amount of success
in recent past. HUL target market for Dove is women of any age, size, race and region of India.
The aim of product is to spread message all women are beautiful with Dove. The advertising
strategy is the key of success in making women realize that they can find the beauty in them with
Dove as in advertisement, they feature common women and girls who use Dove and finding
difference in skin and face.
With the variant of Dove products like Dove beauty cream, Lemon fresh, pink, gentle exfoliating
etc. They focused on quality and uniqueness of soap by adding feature of Moisturizer and
softness. Recently the campaign of better than milk bath has achieved good response from
women.
They have also entered into Kids segment by introducing Kids Dove. They are extended the
depth in product offering with categories like skin sensitive. It has also extended line by bringing
up Dove cream, facewash, Shampoo etc.
Conclusion
HUL has been constantly delivering performance by offering varieties of products in different
segment. Its rich heritage has given confidence among people of India regarding its quality and
uniqueness. Its research and disruptive innovation is making its market positioning better.

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References
(n.d.). Retrieved from www.hul.co.in: https://www.hul.co.in/about/who-we-are/introduction-to-
hindustan-unilever/
(n.d.). Retrieved from en.wiwkipedia.org: https://en.wikipedia.org/wiki/Hindustan_Unilever
Bhasin, H. (2016, December 06). Retrieved from www.marketing91.com:
https://www.marketing91.com/swot-analysis-of-hindustan-unilever/
IBEF. (n.d.). Retrieved from www.ibef.org: https://www.ibef.org/industry/fmcg-presentation
Sultane, P. (2015, January 03). Retrieved from www.slideshare.net:
https://www.slideshare.net/PankajSultane/segmentation-targeting-positioning-of-
hindustan-unilever-limited
Mohankumar, T. P., &Shivaraj, B. (2010). Product Mix Strategies: FMCG in Indian
Market. SCMS Journal of Indian Management, 7(2).
Ahmad, P. S., Gorman, M. E., &Werhane, P. H. (2004). Case Study: Hindustan Lever Limited
and marketing to the poorest of the poor. International Journal of Entrepreneurship and
Innovation Management, 4(5), 495-511.

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