Marketing Management Report: HUL Analysis

This report provides a comprehensive analysis of marketing management principles, focusing on Hindustan Unilever Ltd. (HUL). It includes a detailed description of HUL and the consumer goods industry, followed by a 5Cs analysis (Company, Customers, Collaborators, Competitors, Context) to understand the company's position and environment. The report further explores the marketing strategies HUL can adopt, including market segmentation, penetration, development, and diversification. It also outlines marketing tactics, such as the marketing mix (product, price, place, promotion, people, process, physical environment). The report concludes by summarizing the key findings and highlighting the importance of marketing in business success.

Marketing Management
Marketing management

Marketing Management 1
Table of Contents
Introduction................................................................................................................. 2
Brief description of the organisation and industry.......................................................3
5Cs of the organisation...............................................................................................5
Company:................................................................................................................ 5
Customers:.............................................................................................................. 6
Collaborators:.......................................................................................................... 6
Competitors:............................................................................................................ 6
Context:................................................................................................................... 7
Analysis of the methods applied for gathering information related to 5Cs..................9
Developing marketing strategy..................................................................................10
Developing marketing tactics....................................................................................12
Conclusion................................................................................................................ 13
References................................................................................................................14

Marketing Management 2
Introduction
This report has been executed on the topic “Marketing Management” In which
discussion will be made regarding the different aspects related to marketing strategy
development. Marketing strategy is an important aspect which enhances the
chances of success and growth of the business. Marketing strategy can be explained
as a foundation of the marketing plan of an organisation. Challenges are being faced
by the organisations and for coping with these challenges, marketing strategies are
adopted by the business. An organisation has been selected for the purpose of
developing a better understanding of the different aspects of the marketing strategy
development. Hindustan Unilever Ltd. has been selected for the execution of this
report in a better manner. This report will discuss the brief description of the
Hindustan Unilever Ltd. and the industry in which it is operating. The analysis will be
done of the 5Cs of the Hindustan Unilever Ltd. along with the analysis of the manner
in which information is gathered about the 5cs by Hindustan Unilever Ltd. This report
will discuss the marketing strategy which will be used by Hindustan Unilever Ltd.
marketing tactics will be developed in this report which supports the marketing
strategy of Hindustan Unilever Ltd.
Figure 1: Hindustan Unilever Ltd.
Source: (Hindustan Unilever Ltd, 2017)

Marketing Management 3
Brief description of the organisation and industry
Hindustan Unilever Ltd is a public limited company which is operating in the
consumer goods industry. It was founded in the year 1933 and its headquarter is
located in Mumbai, India. Its parent company is Unilever. It is offering a wide range
of products to its customers including food products, personal care products, water
purifiers and cleaning agents. According to the data collected in the year 2014, it has
a strong employee base of around 18000 employees. The vision of Hindustan
Unilever Ltd is to develop a better future by offering high-quality products or services
for enhancing the experience of the customers. Sustainable growth strategy has
been implemented by Hindustan Unilever Ltd. Focus of Hindustan Unilever Ltd is on
reducing the adverse impact of its activities on the environment, enhancing the size
of the business and enhancing the positive impact on the environment. Net sales of
Hindustan Unilever Ltd for the financial year 2016-2017 was INR 33895 crores
(Hindustan Unilever Ltd, 2017).
Key priorities of Hindustan Unilever Ltd are providing a better future for the children,
a healthier future for the different groups of the society and a confident future. Values
which are being followed by Hindustan Unilever Ltd include working with integrity,
creating a positive impact, continuous commitment, working with others and setting
aspirations. Principles adopted by Hindustan Unilever Ltd are complying with the
law, standard of conduct, innovation, fair competition, the involvement of the
community, the safety of the environment, business integrity and dealing with
conflicts of interest. The mission of Unilever is to meet the everyday needs of the
people by providing nutrition, hygiene and personal care products with high quality.
Consumer goods industry is providing quality products related to food, packaged
goods, clothing, automobiles, electronics and beverages (Hindustan Unilever Ltd,
2017).
Consumer goods industry is connected to the other industries such as technology
and manufacturing industries. Hindustan Unilever Ltd is one of the largest consumer
goods company with a history of more than 80 years. Hindustan Unilever Ltd is
having a large customer base and is focusing on enhancing the satisfaction level of
the customers. Hindustan Unilever Ltd is operating different brands in different

Marketing Management 4
categories including food and drink, water purifier, personal care and home care.
Hindustan Unilever Ltd believes that high standards of corporate governance need to
be maintained. HUL is having 35 brands which are offering products of 20 different
categories. The focus of Hindustan Unilever Ltd is on bringing innovations in the
existing products and developing new products for attracting the customers and
gaining a competitive advantage over the others in the industry. Different marketing
strategies are being adopted by Hindustan Unilever Ltd for the purpose of enhancing
the performance of the company (Hindustan Unilever Ltd, 2017).

Marketing Management 5
5Cs of the organisation
Company:
HUL is performing well in the consumer goods industry and focusing on
enhancement in the quality of the products. It has effectively used the strengths for
gaining the advantage of the opportunities available and coping with the threats
faced by it. SWOT analysis of HUL is as follows:
Strengths Weaknesses
 HUL is operating as a market
leader in the consumer goods
industry.
 Focus on the innovative products
has acted as the strength of HUL.
 It is having an effective distribution
system which has helped in
establishing large customer base,
 Brand visibility has also
contributed towards the growth
and success of HUL. HUL is
having 35 brands which offer
different quality products (M2
Presswire, 2009).
 Awareness among the customers
has acted as strength in dealing
with the competition.
 It is offering a wide range of
products which has helped in
developing a strong customer
base.
 HUL is holding market share and
its product range has helped in
gaining the market share.
 Due to the increase in the level of
competition, there has been a
decrease in the market share of
HUL.
 Confusion has been created due
to the wide brand portfolio (M2
Presswire, 2013).

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 HUL is having a sound financial
condition (M2 Presswire, 2012).
Opportunities Threats
 Entering the new markets will help
in the expansion of the area of
operation of HUL.
 Increasing awareness among the
customers will help HUL in dealing
with competition (M2 Presswire,
2011).
 Increasing prices of the products
can act as a threat.
 Competition has affected the
customer base of HUL (M2
Presswire, 2012).
Customers:
Customers of HUL are spread all around the globe and are increasing. HUL is
offering a wide range of products at different prices which have helped in attracting
the customers towards it. Unilever is considering providing quality products for the
purpose of enhancing the satisfaction level of the customers. It has differentiated the
market on the basis of the income level and gender. Its products are priced on the
basis of the prices of the competitors for attracting customers and enhancing
customer base. For informing the customers, HUL is using effective communication
strategies (Unilever, 2016).
Collaborators:
HUL has entered into comprehensive agreements with its suppliers for delivering the
products to them on a fixed price for a certain period of time. This policy of HUL has
helped in bounding the suppliers and not letting them switch to the competitors of
HUL. A rule of home business and local developed has been followed by HUL. HUL
is focusing on generating trust among the suppliers. The reason behind this step is
the bargaining power of the suppliers as they can switch to other companies
operating in the consumer goods industry. Suppliers supplying raw material have low
bargaining as there is a large number of suppliers available in the market
(Dangarwala, 2013).

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Competitors:
Competition in the consumer goods industry is increasing which has affected the
customer base of HUL. The main competitors of HUL are ITC, Nestle, Cadbury,
P&G, Dabur and AMUL. Development of substitute products has affected the
performance of HUL at large. This has raised the expectations of the customers
resulting in a shift in the taste of customers. These competitors of HUL are offering
attractive and quality products for attracting the customers towards them. This high
amount of competition has affected the profitability of HUL. Competitors of HUL are
spending huge funds on the research and development activities for the
development of new products (Bharucha, 2015).
Context:
There are various factors present in the environment which affects the performance
of the business. For the purpose of developing an understanding of the impact of
these factors of the business environment on HUL, PESTLE analysis of HUL is
done.
Factor Impact
Political factors Political factors create an impact on the
manner business is operating. Change in
political parties results in a change in the
legislation, trade agreements and market
regulations (Bhattacharyya, 2012).
Economic factors Impact of economic recession can be
seen in the buying behaviour of the
customers. This affects the customer
base of HUL.
Social factors HUL needs to pay attention to the society
and need of the customers. Change in
the trend and need of the customers
affect the performance of HUL (Ghanta &
Antra, 2016).
Technological factors E-business and other advancements in

Marketing Management 8
the IT have affected the performance of
HUL.
Legal factors Different laws have been formulated by
the government of different countries.
HUL need to comply with these laws for
executing operations in an effective
manner (Atifa, 2011).
Environmental factors HUL need to conduct the operations
within the environmental laws formulated
by the government for the safety of the
environment. Activities of the HUL can
affect the environment which can affect
the operations and reputation of the
business.

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Analysis of the methods applied for gathering information related to
5Cs
For the analysis of the needs, taste and preference of the customers, HUL is
conducting market research activities. These market research activities have helped
HUL in the analysis of the taste, preference and needs of the customers of HUL. The
main objective of every company is to enhance the experience of the customers and
their satisfaction level. This information has helped HUL in meeting the expectations
of the customers by providing the products as per their needs and preference.
Market research develops the knowledge of the trend prevailing in the market. HUL
is also analysing the service records of the customers for analysing the buying
behaviour of the customers. Website activities of HUL are being monitored for the
analysis of the traffic on the website of the company (Şahin & Kalyoncuoğlu, 2014).
Its main competitors are ITC, Nestle, Cadbury, P&G, Dabur and AMUL which are
creating an impact on the performance of HUL. The business environment is
changing due to the changes taking place in the various factors including technology,
promotional techniques and changing needs and preferences of the customers.
Competition in the business environment is increasing which has resulted in adverse
impact on sales of the company. For the purpose of gaining information related to
the competitors in the market, marketing research activities are considered good
sources. Marketing research activities help in analysing the performance of the
competitors (Andrew, 2010).
Suppliers and distributors play a vital role as they provide the raw material as well as
helps in reaching the customers of the company. HUL is having a strong relationship
with the suppliers and distributors for ensuring that its production process and
distribution process are carried out in an effective manner (Jack, 2011).

Marketing Management 10
Developing marketing strategy
Marketing strategies can be explained as those techniques which are adopted by the
marketers for gaining the knowledge about the diverse nature of the markets. Market
segmentation is used as a base for the selection of the targeted market. HUL has
divided the large market into small segments for the purpose of attracting the
customers towards the business and expansion of the customer base of the
company. HUL is using market segmentation strategy for targeting the customers in
a better manner. Different products are being used for these different market
segments. HUL can divide the consumer market on the basis of the geographical
segmentation, demographic segmentation and differentiated pricing strategy. Other
strategies which can be followed by HUL include market penetration, market
development and diversification strategy. These strategies will help in enhancing the
customer base by attracting them (Charles & Oakes, 2016).
Geographical segmentation will help HUL is targeting the regional, local and national
level customers in a better manner. This strategy will help in focusing on the different
markets and targeting the different markets effectively. Low priced products can be
offered for the customers of the areas where income level of people is low. This can
be done for attracting the customers and forming a strong customer base in the
different regions. Demographic segmentation can be used by HUL as it will offer
products for different age groups and gender in the society. HUL is offering a wide
range of products for different age groups, different gender and people of different
regions (Reynolds, 2011).
Differentiated pricing strategy can be followed by HUL for targeting the different
income groups of the society. Another marketing strategy which HUL can adopt is
market penetration strategy. With the help of this strategy, HUL will be able to sell
the existing products in the existing market for gaining a higher market share and
gaining a competitive advantage over the others in the industry. Market development
strategy can be used by HUL for innovating new products and engaging in the
research and development activities for the development of new products.
Diversification strategy can be used by HUL for entering the new markets which will
provide new opportunities to the business. The positioning of the products of HUL is

Marketing Management 11
done by keeping the focus on the customers and competitors. It has adopted a
customer-oriented positioning strategy which helps in attracting the customers
towards the products or services offered by HUL. Competitor oriented positioning
strategy has helped HUL in positioning the products in the market by analysing the
positioning strategy of the competitors. These positioning strategies have helped
HUL in positioning the products by differentiating it from the products offered by the
competitors (Widelia, et. al., 2016).