SMALL ACTIONS …..BIG DIFFERENCE !

WHAT IS AN FMCG ?• FMCG= Fast Moving Consumer Goods.

• Products that are sold quickly and at a relatively low price.

• The absolute profit made on FMCG products is relatively small.

• They are generally sold in large quantities.

• Examples include non-durable goods such as soft drinks, toiletries, grocery items and so on.

HUL IS A LARGE FMCG !

• HUL is one of India’s highest ranking FMCG’s.

• It cover a list of products like :• Food brands• Personal care brands• Home care brands• Nutrition • Beauty products• Health & hygiene brands

HINDUSTAN UNILEVER - HISTORY

• India’s largest fast moving consumer goods company.

• Formed in India in 1933 by the Lever Brothers.

• Converted to Hindustan Lever Limited due to the merger with Hindustan Vanaspati.

• The company was renamed as Hindustan Unilever in July 2007.

HUL PRODUCTS

VISION OF THE COMPANY

CAGR• COMPOUND ANNUAL GROWTH

RATE (CAGR) is a term for the smoothed annualized gain of an investment over a given time period.

• CAGR is not an accounting term, but remains widely used, in growth industries or to compare the growth rates of two investments.

• CAGR is used to describe the growth over a period of time of some element of the business. Eg. revenue, units delivered, registered users, etc.

CAGR OF HUL• HUL’s net sales have recorded a CAGR of more than 11% over the past 3 years.

• While net profits have posted a CAGR of 17% during the same period.

• The dividends have grown at a CAGR of 5.1%.

• It has been able to maintain its operating margin in the 13% to 15% range since the last seven quarters.

LOGISTICS OF HUL

• Yearly Results of 2011 (In Crore Rupees)

1) Sales Turnover - 19,333.30

2) Gross Profit - 5,367.483) Net Profit - 2,305.97• PRICE PER SHARE AS ON

2ND MARCH 2012 - RS 382.55

PRODUCT LINE OF HUL

1) HOME & PERSONAL CARE:• Personal wash: Lux, Liril, Lifeboy• Laundry: Surf Excel, Rin, Wheel• Skin care: Fare & Lovely, Ponds• Hair care: Sunsilk, Clinic Plus• Oral care: Pepsodent, Close up• Deodrants: Rexona, Axe

2) FOODS:• Tea: Brook Bond, Lipton• Coffee: Brook Bond, Bru• Ice cream: Kwality Walls• Foods: Annapurna, Knorr

3) WATER PURIFIER

HUL

COMPETITION

•Incorporated in the year 1910.

•2nd largest company in the FMCG sector.

•Entered all FMCG categories of HUL.

•Giving strong competition to HUL.

HUL VS ITC

SOAP

FAMOUS COMMERCIALS BY ITC

•The journey of Nestle India began in the year 1912.

•3rd largest company in FMCG sector.

•One among the top wealth creators of India. •Completed 100 years in the year 2012.

HUL VS NESTLE

COFFEE

•Procter & Gamble deals with manufacturing of household cleaner, pet food and personal care products.

•9th largest company in the FMCG sector.

THE ADVERTISEMENT WAR

V/S

RIN VS TIDE

• Rin came out with a commercial targeting its competitor Tide.

• It claimed "Rin offers better whiteness than Tide."

• P & G took HUL to court for showing its product in bad light.

• HUL was refrained from further playing the advertisement.

HUL VS P & G

SHAMPOO

Doodh si safedi…Nirma se aaye…Rangeen kapda bhi khil khil jaye !!!

Hema…Rekha…Jaya aur Sushma…SABKI PASAND NIRMA !!!

THE SECRET BEHIND “NIRMA”• Nirma (1969) was the

invention of Karsanbhai Patel, a chemist from Gujarat.

• It was named after Karsanbhai Patel's daughter Nirmala.

• He wanted to develop a detergent for door to door selling and so Nirma came into existence.

HUL V/S NIRMA – SAFEDI KI JUNG

SURF EXCEL VS NIRMA• Nirma was priced at Rs. 3.50 per kg, at

a time when HUL’s Surf was priced at Rs 15.

• By 1985, Nirma had become one of the most popular, household detergents.

• In order to counter attack Nirma, HUL launched Sunlight (yellow), Wheel (green) and Rin (blue) detergents.

HUL VS TATA

TEA

HUL VS AMUL ICE

CREAM

LIRIL•Liril sales were falling tremendously.

•To recover the lost market share, they came up with the idea of the “LIRIL GIRL”.

•The Liril Girl is one of the brand’s strongest advertising properties.

•Liril’s bold communication is well known even till date.

THE DEAL • STAR India Pvt Ltd has tied up

with Hindustan Unilever Ltd (HUL) to advertise only HUL brands across all 10 star channels.

• Leading the pack will be Lifebuoy ads.

• The deal is estimated to be of around Rs 52 crores.

• Consumers today are buying more clothes.

• The usage of detergents has gone up as a result.

• With premium quality of clothes, people want to use better and branded products.

• Their strategy for growth, is focused on product innovation, new consumer and retail trends and aggressive marketing and promotions.

• Market share in the laundry segment grew to around 37.8%.

THE LAUNDRY INDUSTRY

THE LAUNDRY INDUSTRY• Wheel contributes around

50% of HUL’s laundry segment revenues.

• The laundry industry in India was worth Rs 7,908 crore in 2006 and rose 8.4% over 2005.

• HUL doesn’t report its laundry revenues separately but puts them under the soaps and detergent category.

THE VASELINE CONTROVERSY

OTHER CONTROVERSIES WITH HUL

• MERCURY POLLUTION: In 2001 a thermometer factory in Kodaikanal run by Hindustan Unilever was accused of dumping glass contaminated with mercury.

• SKIN LIGHTENING CREAMS: The company was forced to withdraw television advertisements for the product in 2007. Advertisements depicted depressed, dark-complexioned women, who had been ignored by employers and men.

• TRICLOSAN: Several academic papers have pointed out the firm's continued use of the antibacterial agent Triclosan ('Active B') in India because it is under review by the American Food and Drug Administration(FDA).

THE BRYLCREEM DEAL• The Brylcreem brand is the leading male

hair styling brand in the country.

• HUL plans to integrate this business with its existing personal care portfolio and grow the Brylcreem franchise.

• Hindustan Unilever (HUL) will enter into an agreement with parent Unilever for manufacturing, marketing and distributing the Brylcreem brand in India.

THE BRYLCREEM DEAL• Prior to this, the brand was being manufactured, marketed

and distributed in India and Sri Lanka by Godrej Consumer Products (GCPL).

• Unilever and GCPL have mutually agreed to bring to an end the licensing arrangement effective from March 31, 2012.

• GCPL will receive a consideration of Rs 25 crore as provided in the licensing agreement for the brand.

• This agreement will help them to focus on their own brands in their core categories in emerging markets in Asia, Africa Latin America.

MOBILE ADVERTISING• Largest segment of mobile users in India

are college students with pre-paid mobile connections.

• Mobile Advertising entitles consumers to a "scratch and win" offer on buying Kwality Walls Cornetto.

• Enables each buyer to earn reward points starting from Rs.10 worth of oxicash, to utilize the same to connect with others.

• Instant access to talk time and other value added services on mobile, by sending a sms.

MARKETING STRATERGIES FOR RURAL

AREAS

DirectCoverage

Indirect Coverage

Streamline

Acce

ssib

ility

Turnover per market

HUL’S APPROACH TO RURAL DISTRIBUTION

Factory Depot Stockiest/Distributor Trade

DIRECT COVERAGE

Village 1

Village 2

Village 3

Village 4

Village 5

Stockist

INDIRECT COVERAGE

PROJECT STREAMLINE

•In the late 1990s, HUL took its first step to expand rural distribution through Project Streamline.

•It created a hub and spoke system and appointed sub-dealers who had the opportunity to serve villages in their vicinity.

•Smaller regional brands would come along, offer better markups and sell goods on credit and take away a significant portion of business in a short span.

EVERYDAY I WILL SELL.EVERYDAY I WILL EARN.MONEY & RESPECT

•Started in 2001, Shakti is HUL’s rural women which targets small villages with population of less than 2000 people or less.

•Micro enterprise opportunities for rural women providing health and hygiene education through SHAKTIVANI program ishakti portal.

•Shakti has already been extended to about 15 states , 80,000 villages with 45000 women entrepreneurs and generating Rs 700 -1000 per month to each woman.

•Providing education on health and hygiene.

•Women Employment.

•Water Management.

•Rehabilitation of special and underprivileged children.

•Care for the destitute and HIV positive.

•Rural Development.

•Plays active role in natural calamities.

CORPORATE SOCIAL RESPONSIBILITIES

STATES COVERED BY PROJECT SHAKTI

OPERATION BHARAT

HUL’s Project Bharat was the first and largest rural home-to-home operation to have ever been mounted by any company started in 1998, and covered 13 million households by the end of 1999.

In the course of the operation, its vans visited villages across the country and distributed sample packs comprising a low-unit-price pack each of shampoo, talcum powder, toothpaste and skin cream.

While Project Streamline focused on extending distribution, Project Bharat concentrated on raising penetration and awareness levels.

•It spread information on how washing hands can keep diseases away, targeted a population of 5 crores in 15000 villages.

•It applied 2 approaches :

1) HUL employed Health Development Officers and Health Development Assistants who went to all the villages and educated the community through lectures and community meetings.

2) They returned to the villages after 2 months, offered toys, badges and medals to children who had made it a habit to wash hands regularly. They gave a certificate to the children who won these badges most often.

•Khushiyon Ki Doli is the first multi-brand rural engagement module started by HUL.

•The main objective of the campaign was to reach out to media dark villages with HUL brand messages and to engage with consumers deeply to rapidly change brand adoption metrics.

•It involved various personal care and home care brands of HUL including Wheel, Surf Excel, Fair & Lovely, Sunsilk, Vim, Lifebuoy and Close Up.

KHUSHIYON KI DOLI

SWOT ANALYSIS Strengths:

•Strong brand portfolio, price, quantity & variety.•Innovative aspects.•Established distribution networks in both urban and rural areas.•Solid base of the company.

Weaknesses:

•"Me-too" products which illegally mimic the labels and brands of the established brands.•Strong competitors & availability of substitute products.•High prices of some products. •High advertising costs.

Opportunities:

•Large domestic market – Over a billion.•Untapped rural market.•Changing lifestyles & rising income levels, i.e. Increasing per capita income of consumers.

SWOT ANALYSIS

Threats: •Removal of import restrictions resulting in replacing of domestic brands.•Temporary slowdown in economy can have an impact on FMCG Industry.•Higher taxes leaving lower incomes.

WHAT MAKES HUL DIFFERENT ?

• Having products from sumptuous soups to sensuous soaps.

• Help people feel good, look good and get more out of life.

• Offering consumers healthy choices without compromising taste, convenience and affordability.

HUL – A WINNER !

• HUL has always been and is also presently leading in the FMCG markets.

• It aims at creating a better future everyday.

• The company follows its vision of constantly developing products for changing customer lives.

• It also maintains certain high standards of behavior with workers, communities, environment and customers.

THANK For Your

Time

Aanchal Bathija – 02Anvi Goradia – 11Sara Jaffer – 13

Rajvi Mehta – 26Zoya Khan – 48

Zareen Godil - 50