INTRODUCTION OF HUL
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company with a heritage of over 75 years in India and touches the lives of two out of three Indians. HUL works to create a better future every day and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others. With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Close-up, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pureit. The Company has over 16,000 employees and has an annual turnover of around Rs. 21,736 crores (financial year 2011 - 2012). HUL is a subsidiary of Unilever, one of the world’s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about €46.5 billion in 2011. Unilever has about 52% shareholding in HUL.
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1.1 HISTORY OF HUL Hindustan Unilever Limited (HUL) is India's largest consumer goods company based in Mumbai, Maharashtra. It is owned by the British-Dutch company Unilever which controls 52% majority stake in HUL. Its products include foods, beverages, cleaning agents and personal care products. HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and has employee strength of over 16,500 employees and contributes to indirect employment of over 65,000 people. The company was renamed in June 2007 as “Hindustan Unilever Limited”. Lever Brothers started its actual operations in India in the summer of 1888, when crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers" were shipped to the Kolkata harbor and it began an era of marketing branded Fast Moving Consumer Goods (FMCG). Hindustan Unilever's distribution covers over 2 million retail outlets across India directly and its products are available in over 6.4 million outlets in the country. As per Nielsen market research data, two out of three Indians use HUL products.
1.2 CURRENT STATUS OF HUL Today, Hindustan Lever Limited (HLL) is India’s largest Fast Moving Consumer Goods (FMCG) Company, touching the lives of two out of three Indians and employing over 40,000. Their businesses are comprised of over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. Current sales in India are approximately Rs. 10,000 crores (Rs. 100 billion or USD 223 million) annually, comprising 4 million tons of goods. HLL is also one of India’s largest exporters. 2
1.3 VISION OF HUL Unilever products touch the lives of over 2 billion people every day – whether that's through feeling great because they've got shiny hair and a brilliant smile, keeping their homes fresh and clean, or by enjoying a great cup of tea, satisfying meal or healthy snack. A clear direction The four pillars of our vision set out the long term direction for the company – where we want to go and how we are going to get there:
We work to create a better future every day We help people feel good, look good and get more out of life with brands and
services that are good for them and good for others. We will inspire people to take small everyday actions that can add up to a big
difference for the world. We will develop new ways of doing business with the aim of doubling the size of our company while reducing our environmental impact. We've always believed in the power of our brands to improve the quality of
people’s lives and in doing the right thing. As our business grows, so do our responsibilities. We recognize that global challenges such as climate change concern us all.
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ASTERLXCUDNVPGMYOI OVERVIEW OF HUL
2.1 ORGANIZATION STRUCTURE
HUL: Hindustan Unilever Limited
COMPANY INDUSTRY MARKET CAP BETA 52 WEEKS Hi/Lo Average Daily Volume Face Value
-
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HUL FMCG 48571 Cr 0.4 306/215 430633 Rs 1
2.2 DISTRIBUTION CHANNEL Distribution Channel of HUL HUL
C&F Agents
Redistribution Stockiest
Whole Seller
Rural Retailer
Urban Retailer
Customers
2.3 MARKET PENITRATION OF HUL
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Penitration Skincare
Shampoos
Toothpaste
Soaps
10% 21%
43%
26%
2.4 PRODUCTS OF HUL HUL Products in India Personal wash:- Lux - Lifebuoy - Liril - Hamam - Breeze - Moti - Dove - Pears - Rexona Foods:- Kissan(Jam, Ketchup, Ice-creams:Beverages:Tea:-
Laundry:- Surf Excel - Sun Light - Rin - Wheel - Ala Bleech Beauty Products:- Fair & Lovey - Lakme - Ponds - Vaseline - Aviance
Squashes) Annapurna(Atta & Salt) Knorr Soups Modern Bread
Hair Care:-
Kwality Walls
-
Sunsilk Naturals Clinic Dove
-
Pepsodent Close-up
-
Axe
Oral Care:-
Brook Bond Lipton
Deo Spray:-
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- Taj Mahal Coffee:- Brook Bond Bru Disinfectants:- Domex - Cif
- Rexsona Water Purifier:- Pureit Dishwasher:- Vim
2.5 CATEGORY WISE SALES GROWTH OF HUL Category wise Sales growth of HUL Particulars Fabric Wash Personal Wash
Key Brands
Market Size (in
Market Share
Rank
Surf Excel
Rs Cr.) 8988
37.5%
1
Wheel Dove
6632
54.3%
1
2792 2168
57.3% 54.5% 47.8%
1 1 1
59.7% 22.7% 44.0% 67.5% 29.5%
1 1 1 1 2
28.1%
2
Lux Lifebuoy Dish Wash Skin Shampoo
Ponds Sunsilk Clinic Plus
Talcum Powder Packet Tea Coffee Jams Toothpaste
Red Label Bru
4452 708
Pepsodent
2764
Close-up Ketchups
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2.6 BCG ANALYSIS BCG Analysis of HUL
Soap & Detergent and Tea are CASH COW for the company. It has high relative market share and low growth rate. Personal Products and Coffee are STARS for the company as it have high relative market share as well as high market growth rate. Only food is a segment which is a QUESTION MARK for the company. The company have a low relative market share where as it is under high market growth rate. HUL is taking several steps to capture more market share so that food segment can also be a part of Star.
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COMPETITION IN THE FMCG MARKET
Five main competitive strategies are: • Overall low cost leadership strategy • Best cost provider's strategy • Broad differentiation strategy • Focused low cost strategy • Focused differentiation strategy Here competitive strategy varies from sector to sector and company to company. Thus, it is not easy to predict a single or to find a single strategy for the whole sector. When we come on to FMCG Sector main strategies lay behind market strategies, cost, and quality strategies. Here in this report you are going to get information about such type of strategies of FMCG giants.
3.1 COMPETITIVE STRATEGIES AND COMPARISON WITH ITC HUL (Hindustan Unilever Ltd.) This Company is earlier known as Hindustan Lever Ltd. This is India's largest FMCG sector company with all type of household products available with it. It has Home & Personal Care products, and also food and Water Purifier available with it. According to Brand Equity, HUL has largest no of brands in most trusted brands list 16 of HUL's brands featured in AC-Nielson Brand Equity list of 100 most trusted brands in 2008 in an annual survey. For the entire year ending March - 2009 net turnover of company is Rs. 20'239.33 Crore which is 47.99% higher than 31st December 2007's Rs. 13675.43 Crore driven mainly by domestic FMCG's with net profit stood at Rs. 2'496.45 Crore.
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Products of HUL are: Annapurna; Ayush; Axe; Breeze; Bru; Brooke bond; Clinic; Dove; Fair & Lovely; Hamam; Liril; Lux; Pears; Ponds; Pepsodent; Pureit; Rexona; Rin; Sunlight; Surf excel; Vaseline; Wheel. ITC Limited This Company was earlier known as Imperial Tobacco Company of India Ltd. It is currently headed by Yogesh Chander Deveshwar. Company mainly operates in the industry like Tobacco, Foods, Hotels, Stationary and Greeting Cards with the major products constitutes Cigarettes, packed foods, hotels, and apparels. For the entire year ending Mar-2009 the turnover of company is at Rs. 15388 Crore which is 10.3% higher than previous year's Rs. 13947.53 Crore, driven mainly by robust 20% growth in non cigarette FMCG business with net profit stood at Rs. 3324 Crore. Analysis of Both Companies: HUL & ITC are major companies in FMCG market in India. When we compare both companies on the basis of their strategies i.e. , their competitive strategies in the present market. When we look at the present segment breakup for both of the companies then we came to know that their different products vary too much in the market. Now let us take a comparative analysis of both the companies under some heads:
HUL Hindustan Unilever (HUL) is the largest pure-play FMCG Company in the country and has one of the widest portfolio of products sold via a strong distribution channel. It owns and markets some of the most popular brands in the country across various categories, including soaps, detergents, shampoos, tea and face creams.
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ITC ITC is not a pure-play FMCG company, since cigarettes is its primary business. It is diversifying into non-tobacco. FMCG segments like foods, personal care, paper products, hotels and agri-business to reduce its exposure to cigarettes. Performance: After stagnating between 1999 and '04, the company is back on the growth track. In the past three years, till 2008 HUL's net sales have witnessed a CAGR of 11%, while net profit has posted a CAGR of 17%. Despite diversification, ITC's reliance on cigarettes is still huge. The tobacco business contributes 40% to its revenues, and accounts for over 80% of its profit. This cash-generating business has enabled it to take ambitious, but expensive bets in new segments and deliver modest profit growth. Overall Strategy: HUL always believes in customer friendly products with major emphasis on low cost overall without compromising on the quality of the product. They are leveraging the capabilities and scale of the parent company and focusing on the value of execution. The entire product portfolio is also being tweaked to include premium offerings such as Pond's Age Miracle and dove shampoo in skin and hair care. HUL introduced Project Shakti to penetrate the rural market. ITC is focusing on delivering value at competitive prices. Its tremendous reach through extensive distribution chain has been a competitive advantage. Additionally, the company's e-choupal model for direct procurement is well known under which ITC partners with over 100,000 farmers for spices and wheat procurement and an even larger number for oilseeds. This kind of rural pedigree is hard to beat. Growth Drivers: HUL has been launching new products and brand extensions, with investments being made towards brand-building and increasing its market share. HUL is 11
also streamlining its various business operations, in line with the ‘One Unilever' philosophy adopted by the Unilever group worldwide. Introduction of premium products and addition of new consumers via market expansion will be HUL's growth drivers. ITC's backward integration to ensure that its products pass efficiently from the farms to consumers has helped it to cut down supply and procurement costs. ITC's non-cigarette FMCG business leverages the large distribution network the company has developed by selling cigarettes over the years. A rich product mix, along with ramp-up of investments in its new sectors, will be instrumental in charting ITC's growth path. Risk for both the companies: For HUL Being an MNC operating in India, HUL is more conservative in its strategies than its Indian counterparts. Moreover, given increasing competition, it faces the risk of being overtaken by domestic players in various categories. Prolonged inflation may lead to margin contraction, in case HUL is not able to pass on this burden to consumers. The company's large size also poses a problem, since it does not give HUL the agility to address the competition it faces from national and regional players. For ITC Increased regulatory clamps on tobacco, along with rising tax burden, pose a business risk for ITC. So, it has started an ambitious diversification plan, which has its own set of risks. With its foray into the conventional FMCG space, ITC has entered the high-clutter branded products market. This will burden its resources in terms of ad spend and brand-building. Creating brand recall and building market share in new products are ITC's key challenges. Export ban and rising crop prices pose a threat for its agri-business, taxing its margins.
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3.2 COMPETITIVE STRATEGIES AND COMPARISON WITH P&G Procter & Gamble was founded in 1837 by William Procter, a British citizen who immigrated to the United States. The company first sold candles. Procter & Gamble Co. (P&G, NYSE: PG) is a Fortune 500 American multinational corporation headquartered in Downtown Cincinnati, Ohio that manufactures a wide range of consumer goods. As of mid 2010, P&G is the 6th most profitable corporation in the world, and the 5th largest corporation in the United States by market capitalization, surpassed only by Apple, Exxon Mobil, Microsoft, and Wal-Mart. It is 6th in Fortune's Most Admired Companies 2010 list. P&G is credited with many business innovations including brand management and the soap opera. According to the Nielsen Company, in 2007 P&G spent more on U.S. advertising than any other company; the $2.62 billion spent by P&G is almost twice as much as that spent by General Motors, the next company on the Nielsen list. P&G was named 2008 Advertiser of the Year by Cannes International Advertising Festival. Proctor & Gamble is a leading member of the U.S. Global Leadership Coalition, a Washington D.C.-based coalition of over 400 major companies and NGOs that advocates for a larger International Affairs Budget, which funds American diplomatic and development efforts abroad. Major Products of P&G Coconut- based cleaning and food
Laundry and personal cleaning products
products Purico Star Perla Sunshine Camay Mayon PMC
Tide Dari Crème Primex Safeguard Ariel Gain Bonus 13
Victor Ola Agro Fresco Health care Vicks Fibresure Thermacare Pepto Bismal Hair care and laundry categories Pampers Whisper Rejoice Tide Max Factor Vidal Sassoon Ivory Pantene Dishwashing, fabric care and food
Daz Lava Mr. Clean Prell Crest Zest Moncler Ivory Laundry, personal care and hair care Secret Safeguard Ascend Ariel Old Spice Zest Clairol Nice n Easy Wella Camay
categories Joy Mr. Clean Alldays Pringles
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STRATEGIES OF P&G P&G focuses on five core strengths required to win in the consumer products industry.
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Consumer Understanding No company in the world has invested more in consumer and market research than P&G. We interact with more than five million consumers each year in nearly 60 countries around the world. P&G invest more than $350 million a year in consumer understanding. This results in insights that tell us where the innovation opportunities are and how to serve and communicate with consumers. Innovation P&G is the innovation leader in this industry. Virtually all the organic sales growth delivered in the past nine years has come from new brands and new or improved product innovation. We continually strengthen our innovation capability and pipeline by investing two times more, on average, than our major competitors. In addition, we multiply our internal innovation capability with a global network of innovation partners outside P&G. More than half of all product innovation coming from P&G today includes at least one major component from an external partner. The IRI New Product Pacesetter Report ranks the best-selling new products in our industry in the U.S. every year. Over the past 14 years, P&G has had 114 top 25 Pacesetters—more than our six largest competitors combined. In the last year alone, P&G had five of the top 10 new product launches in the U.S. and 10 of the top 25. Brand-Building P&G is the brand-building leader of this industry. It has built the strongest portfolio of brands in the industry with 22 billion-dollar brands and 20 half-billion-dollar brands. Eleven of the billion-dollar brands are the #1 global market share leaders of their categories. The majority of the balances are #2. Go-to-Market Capabilities It has established industry-leading go-to-market capabilities. P&G is consistently ranked by leading retailers in industry surveys as a preferred supplier and as the industry leader in a wide range of capabilities including clearest company strategy,
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brands most important to retailers, strong business fundamentals and innovative marketing programs. Scale Over the decades, we have also established significant scale advantages as a total company and in individual categories, countries and retail channels. P&G’s scale advantage is driven as much by knowledge-sharing, common systems and processes, and best practices as it is by size and scope. These scale benefits enable us to deliver consistently superior consumer and shareholder value. P&G follows Connect + Develop strategy which enables to bring innovations to life faster, more economically and more sustainably. HUL AND P&G ADVERTISEMENT WAR The new campaign started by Rin, a product of Hindustan Unilever Limited. It is a direct attack on the Tide Naturals product by Procter & Gamble. Note that when It is said a direct attack – it means an uncensored visual shows the competitor product and then highlights how the other product is better than the former. The sequence of the ad is as follows 1. Two ladies are standing on a bus stop, waiting to pick their kids from the school bus. 2. Both are carrying their shopping basket/bag with them. 3. Lady 1 has Tide Naturals in her bag. 4. Lady 2 has Rin in her bag 5. Both ladies have a look at each other’s bag and Lady 1 boasts that Tide has a good fragrance and provides better whiteness/brightness to the clothes 6. In the meantime, the school bus arrives and it’s shown that the white shirt of Lady 2’s kid is strikingly brighter and whiter then the Lady 1’s kid.
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7. Lady 1 gets astonished by the whiteness seen. 8. Lady 2’s kid reacts by asking he mother, as to why is the other lady so observant and amazed 9. There is a disclaimer during the ad that the analysis has been done by an independent agency 10. It’s then claimed that now there is promotional price of Rs. 25 on Rin as opposed to the earlier Rs. 35. As it can be noticed, there is a direct mention of the competitor product along with the visuals. This one seems to be an absolute direct attack. It is difficult to say if the ad will continue on TV. Tide would definitely come out with a protest. However, I think the damage is already done. The main point about the reduced price of Rin would definitely catch the consumer’s eye benefiting HUL. PRICE WAR BETWEEN HUL AND P&G HUL increase the grammage for wheel
P&G increase the grammage of Tide by 25% P&G cut the price of ARIEL
HUL reduces the price of Surf Excel in comparison to Ariel In the year 2010 HUL has reduced 11-17% price in detergents, 7-17% in toilet soaps and 6-7% in the toothpastes. HUL cut the price of RIN by 30% (price war with P&G). Due to which P&G reacts by cutting 20% indirect price (25% grammage hike) in TIDE. 18
DOVE SOUP MARKETING PLAN
4.1 INTRODUCTION Dove today is in 80 countries making women beautiful everyday and enabling them to enjoy their own brand of beauty by providing a wide range of personal care, hair care, and skin care products. Dove launched first in the US in 1957. Dove is one of the leading brands of Unilever globally. Dove is known to be a keeper of promises and has given real products to women all over the world. Dove believes that beauty feeling and looking your personal best - is the result of proper care. Dove always aims to deliver products which tangibly improve the condition of skin or hair and give a pleasurable experience of care, because when you look and feel beautiful, it makes you feel happier. It’s a feeling every woman should experience every day. From the beginning Dove has always celebrated real women at the heart of everything the brand does and believes. Real beauty embraces diversity - no woman is or should feel excluded from the world of beauty that the brand represents. Real women are the brand’s true inspiration. Dove got women to experience the ‘real’ Dove difference, with the Face Test campaign. Thousands of women across the country put their soap, and Dove, to the test. They all had the same answer – Dove made their skin soft. Irrespective of seasons, our skin needs moisturizing. With 1/4th moisturizing cream, Dove bars washes provide a complete moisture care. With 1/4th moisturizing cream blended with cleansers, Dove Bar cleanses your skin without drying it, which no soap can promise.
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4.2 CURRENT MARKET SITUATION Dove is a moisturizing soap by Unilever Bangladesh Limited. Dove’s brand growth is increasing day by day. Now it is being most popular bathing bar for women in the whole country. Dove is an international brand and available in more than 80 countries. Dove has recently been voted as UK women’s favorite personal care brand, with over a third of British women purchasing its products. Currently its market share is growing. Marketing mix strategies i.e. Four P’s of marketing strategies are describing below. 4.2.1. Product: Irrespective of seasons, our skin needs moisturizing. With 1/4th moisturizing cream, Dove Bars provides a complete moisture care. Dove makes skin softer. In Bangladesh Dove beauty bars are available in three variants in two sizes, 90 ml and 135 ml. Dove White Beauty Bar: Contains 1/4th moisturizing cream and mild cleansers that leave skin clean, soft and smooth. Dove Pink Beauty Bar: Contains1/4thmoisturizing cream richly blended with its mildest cleansers, no other beauty bar has more skin-natural moisturizers than Dove. Everyday moisture is the key to beautiful skin. Dove Fresh Moisture Beauty Bar: Contains an ultra-light hydrating formula and the crisp, soothing scent of cucumber and green tea provides a refreshing, uplifting sensation for once skin.
4.2.2. Price: Price is only one P among 4P’s that genrate some revenue for the cpmpany and rest all incurred some cost of the company. Unilever usually practised value-based 20
pricing strategy for the products. Dove soap’s 90ml bar’s price 75 taka and 135ml bar’s price is 98 taka. Dove soap’s target consumers are middle to upper-income women.
4.2.3. Promotions: For the brand recognization and sales promotion Dove use different types of media for promotion and advertisement such as Print Media, Broadcasting Media, Display Media and Internet Media. Dove telecast advertisement in Radio, Television, Billboards, Newspapers, Magazines, Facebook, Twitter etc. In the Television ads Dove shows “Dove is better than soap. And you can prove it. Wash one side of your face with soap. Use Dove on the other. Feel the moisturizing, softer, smoother Dove difference. You'll never wash with soap again.” So Dove told us that Dove is a better than a soap. It’s not an ordinary soap. It’s totally different than others. Sometimes dove give various sales promotions to the customer via Facebook, Twitter, Television and Radio. They give discounts and other free items with every purchase or bundle purchase of Dove soap. 4.2.4. Placement: Dove soap follows common distribution system. That means company to wholesaler to retailer to consumer. It has made his strategy like that in every small or big shop customer will be able to find out the product. Unilever has mass distribution channel whole over the country. So in every small or big shop, super shop has Dove soap is available. This distribution network directly covers cities million consumers.
4.3 COMPETITIVE ANALYSIS There are very few competitors of Dove soap are available in the market. Dove is a higher quality and costly than other local soaps. Dove soap’s competitors are Lux, Sandalina, Olay and Nivea. Lux is Dove’s internal competitor which is also owned by Unilever Bangladesh Limited. Sandalina is a local soap which can be a tough competitor for Dove. Now-a-days Olay and Nivea give a tough competition. Olay and Nivea is imported soap.
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4.4 SWOT ANALYSIS The SWOT (Strength, Weakness, Opportunity and Threat) analysis is a useful tool for an industry. An internal survey is required for strength and weakness and an external survey is required for opportunity and threat. Dove soap’s SWOT analyses are summarizes. 4.4.1. Strength: 1. Brand wisdom and widespread distribution. 2. Competitive Price. 3. Growth in cascade product. 4. Brand devotion. 5. Adequate to encourage consumers to feel and look their best. 6. Wide range of crossroads that finish appeal to every last (predicate) ages. 7. Effective advertising, free publicity. 4.4.2. Weaknesses: 1. High level of competition. 2 .High levels of expensive advertising needed and maintained. 3. Special offers counter vigorous on growth. 4. Soap bars undergo from ageing image. 5. Some products are seen as a compassion product not essential use. 6. Widespread distribution and snitch loyalty means that market growth is difficult. 7. Some consumers are let down on performance. 4.4.3. Opportunities: 1. Target markets not yet capitalized – teens. 2. Continuous innovation. 3. Eco-friendly market segment/natural products. 4. Target teen specific concerns (medicated flake off opportunities) 5. Target male customers. 6. Long pending opportunity of tapping into the market developing beauty products for men. 22
7. Unified advertising technique used by Dove. 4.4.4. Threats: 1. New launch of other brands with similar products. 2. Recent recession (less available income) 3. Consumer allergies. 4. Decline in Bath products. 5. Environmental awareness. 6. Dove faces tough competition from Olay, Nivea, and Lux. 7. Olay, Nivea both are getting stronger as they grow and their market is also expanding.
4.5 OBJECTIVES AND ISSUES Dove develops its marketing objectives very carefully as it is devoted to expand the definition of beauty for all women for the reason that they believe real beauty comes from your inner self. All successful marketing strategies were basically due to wisely planned marketing objectives of Dove which we are going to discuss here. Our main target customers are women. Now we will target male consumers also. The main objectives are:
New target segment: male. To be a focus for nationwide TV and print media reporting. To increase sales in upcoming years. To increase brand awareness among people. Increasing the distribution channels in more than 80 percent retailers
shop and supermarkets. Increase more advertisement campaigns. Maintain a good public relationship. Maintain the brand image by providing good product and service.
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4.6 MARKETING STRATEGY Dove Campaign for Real Beauty, including Evolution. Dove’s marketing strategy is based on positioning of product differentiation. Dove is better quality soap. Unilever usually practice value-based pricing. Dove soap’s price is higher than other brands soap and competitors. So our target consumers are middle to upper-income women who need a better quality soap for both body and face. Usually other brands soaps are not good enough for our face as our face skins are very sensitive. Dove is a right choice for our face and also for our body. Positioning: We are positioning dove as the high quality, moisturizing soap which can be used anywhere in body and face. Everyone can use dove soap easily even if they have very sensitive skin. This differentiates dove soap by other brands soap. Marketing communication strategy: Dove has a strong brand image whole over the world. Everyone knows about the Dove. For creating awareness among people and sales promotions we will use all kind of media such as Print media (Newspapers, Magazines), Display media (Bill Board, Signs), Broadcasting media (Radio, Television), and Online media (Company Websites, Facebook, Twitter, Google ad-sense) etc. for advertisement. We also use short time sale promotions like buy 3 get 1 free bundle offer, 10-25 % extra free, 5-10 taka discounts, free other Unilever products such as mini packs of Sunsilk shampoo, Vaseline etc. We start Dove campaign for women. We use door to door marketing, free sampling and feedback and arrange several seminars in various places and colleges and universities. We also try to sponsor some reality shows where women will be highlighted. At last, we are planning to make Bangladeshi model and actress Joya Ahsan as our brand ambassador. We are making agreement on it. These attempts will help us to achieve our goals and objectives.
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4.7 ACTION PROGRAM Dove soap is a renewed soap and most popular in the world. Dove soap launch many years ago in our country. Everyone knows about it very well. For reorganization and set up in our consumer minds we will start our promotional activities. For year 2014, we divide the year by 6 steps and take step for 2 months. The action programs we will use over the year to achieve our goals are summaries below. January-February We will start door-to-door campaign for Dove soap. We will visit a particular area for advertisement of dove. We also visit some colleges and universities. We will create buzz marketing by giving free samples to product user, opinion leaders in the society. March-April We will start an integrated Print/Media/Online marketing targeting our women consumers. We will telecast ads in all kind of media such as in Radio, Television, Newspaper and Bill boards. May-June As our multimedia advertisement continuous, we will add consumer sales promotion such as free same product or alternative product, extra product, discount offer, various types of contest, raffle draws, scratch cards, coupon etc.
July-August We reduced the amount of multimedia advertisements and sales promotions as we will be well recognized brand in the country. September-October
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We reduced the amount of multimedia advertisements and sales promotions as we will be well recognized brand in the country. November-December At the end of the year we will sign Joya Ahsan as our brand ambassador. We will make some new television ads where Joya will be shown on those ads telling our consumers to buy Dove soap because she also uses it.
PRODUCT DIFFERENTIATION STRATEGY
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Surf Excel Launched in 1959 in India as 1
Ariel st
Launched in 1991 in India as
Detergent Powder. One of the brands under HUL
Detergent Powder. One of the brands under P&G
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5.1 SURF EXCEL PRODUCT RANGE Surf Excel Quick Wash: Surf Excel Quick Wash with X-tra clean particles combines the power of strain removing products like blue, bleach and lemon. Multiple stains are removed with just 1 product. Surf Excel Easy Wash: Surf Excel Easy Wash is a superfine powder, in which tough stains are taken off in a jiffy. It is made with superior technology which unleashes the power of 10 hands. Surf Excel Matic: Works in high water levels of front load washing machines. It has hand rub action power and is value for money. For 2 different types of washing machines, it offers 2 products: (A) Surf Excel Matic Top Load, (B) Surf Excel Matic Front Load. Surf Excel Liquid Wash: Surf Excel Liquid Detergent works with the Dip Dap Drop formula. It has better dissolution with superior fragrance. It offers ‘Color care’, and is safe for hands.
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5.2 ARIEL PRODUCT RANGE Ariel Complete+: Ariel Complete+ removes tough stains in just 1 wash. Especially formulated for semi automatic washing machines, Ariel’s cutting edge technology to provide impeccable cleaning. Ariel 24 Hour Fresh: Ariel 24 Hour Fresh provides tough stain removal along with long lasting fragrance. Advanced perfume technology provides impeccable clothes along with long refreshing fragrance that lasts upto 24 hours. Ariel Matic: It provides the best stain removal in one wash. Especially formulated for Fully Automatic Washing Machines. Best used for Front & Top Loading Fully Automatic Washing Machines. Ariel Color & Style: Ariel Color & Style is specifically created for colored clothes to remove tough stains and prevent color fading. With Color Lock Technology, it ensures colored stay shining like new.
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5.3 ADVERTISEMENTS OF PRODUCTS
5.4 S.T.P. OF PRODUCTS Surf Excel S- Segmentation: Premium Segment, Detergent T- Targeting: Blue: All mid scale premium segment buyers Matic: Washing machine users Bar: Medium and low income families Quickwash: consumers in water-scarce and hard-water regions “Daag Achhe Han” P-Positioning: Positioned as a quality product at comparatively lower price in premium segment.
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Ariel S-Segmentation: Premium Segment, Detergent Nuclear families with high income levels. T-Targeting Upper middle class- Rich class of the society wanting superior quality. Washing machine users are also targeted by its product Ariel matic. Customers wanting fragrance and color prevention. “#ShareTheLoad” P-Positioning Positioned as superior stain remover, offering fragrance and preserving colors, in a premium price.
5.5 DIFFERENCES IN PRICE
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CORPORATE SOCIAL RESPONSIBILITIES HUL shows more interest in CSR also as From 2004 to 2008 it has reduced the emission of Carbon di-oxide by more than 25% in the manufacturing. HUL follows 5 R strategies to deal with the Green House Gases (GHG): Reduce Re-Use Recycle Recover Renew HUL uses Agriculture wastages as the fuel (Ground nut shells, saw dust, Coconut shells, cashew etc) DOMEX, a product of HUL is planning to sponsor the “world toilet day” on the 19th November every year.
PROJECT SHAKTI ICICI bank is the financial partner of HUL in the project Shakti As competition is increasing day by day, it’s difficult to maintain the leader position & to further strengthen the distribution network HUL made a project called project SHAKTI which will serve the following purpose: A) To Reach:
Small, scattered settlements and poor infrastructure make distribution difficult. Over 500,000 villages not reached directly by HUL.
B) To Communicate:
Low literacy hampers effectiveness of print media. Poor media-reach: 500 million Indians lack TV& radio.
C) To Influence: 32
Low category penetration, consumption.
D) Awareness:
Per capita consumption in Unilever categories is 33% of urban level. Project Shakti HUL soon realized that although it was enjoying a greater penetration in the
rural market when compared with its competitor such as Nirma and ITC, its direct reach was restricted to only 16%. The FMCG giant was desperate to increase this share. HUL saw its dream fulfillment in the vast Indian rural market. The company was already engaged in rural development with the launch of the Integrated Rural Development Program in 1976 in the Etah district of Uttar Pradesh. This program was in tandem with HUL's dairy operations and covered 500 villages in Etah. Subsequently, the company introduced similar programs in adjacent villages. These activities mainly aimed at training farmers, animal husbandry, generating alternative income, health & hygiene and infrastructure development. The main issue in rural development was to create incomegenerating prospects for the poor villagers. Such initiatives, linked with the company's core business, became successful and sustainable and proved to be mutually beneficial to both the company and its rural customers. However, much more is remained to be done. Project Shakti was conceived following the pioneering work carried out by Grameen Bank of Bangladesh, Self Help Groups (SHGs) of rural women were formed by several institutions, NGOs and government bodies in villages across India. This group of usually 15 members contributed a small amount of money to a common pool and then offered a micro-credit to a member of the group to invest in a commonly approved economic activity. Partnering with these SHGs, HUL started its Project Shakti in Nalgonda district of Andhra Pradesh in 50 villages in the year 2000. The social side of the Project Shakti was that it was aimed to create income-generating capabilities for underprivileged rural women, by providing a sustainable micro enterprise opportunity, and to improve rural living standards through health and hygiene awareness. Most SHG women viewed Project Shakti as a powerful business proposition and are keen
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participants in it. There after it was extended in other states with the total strength of over 40,000 Shakti Entrepreneurs. HUL offered a wide range of products to the SHGs, which were relevant to rural customers. HUL invested significantly in resources that work with the women on the field and provide them with on-the-job training and support. HUL provided the necessary training to these groups on the basics of enterprise management, which the women need to manage their enterprises. For the SHG women, this translated into a much-needed, sustainable income contributing towards better living and prosperity. Armed with micro-credit, women from SHGs become direct-to-home distributors in rural markets.
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CONCLUSIONS & RECOMMENDATIONS
HUL's up-and-running business model is a treat for investors seeking exposure in the FMCG segment. The company has delivered in the past and has the potential to do better in future. In short term. HUL’s growth story is evolving. ITC is eyeing the pie which HUL and other FMCG players currently enjoy. Though risky, the company's business model will pay off in the long run. ITC has proved its expertise in the cigarettes, hotels, paper and agri-businesses. Investors who want to bank on its execution ability in FMCG can consider the stock with a long-term horizon. According to us the companies should continue with their CSR and also continue with their strategies. The thing that needs to be changed is that, ITC should go for more diversification in Non cigarette segment (FMCG) while HUL should come up with the new strategies that could take the new product forward to create a new segment. Hindustan Lever is in a position to expand their business competencies to the agricultural and retail sectors in order to reach India’s enormous population with highquality food products. A recommendation For HUL is that it should focus on rural area more.
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BIBLIOGRAPHY
1) 2) 3) 4) 5)
www.hul.co.in www.hulshakti.com http://www.hul.co.in/investorrelations/ http://www.hul.co.in/brands-in-action/detail/Dove/303749/ https://www.academia.edu/402825/Hindustan_Uniliver_Limited-
_a_study_on_the_marketing_concepts 6) http://www.slideshare.net/mobile/arjunparekh/detergent-wars-in-india-surf-excelarial-nirma-wheel-tide-ghari 7) Naveen Vyas(Researcher): “Initiating Coverage Hindustan Unilever
Limited”(Analysis)(Dec,2011)
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