HUL DISTRIBUTION AND PROMOTION

1. 1 Hindustan Unilever Limited
Page for Academic Tasks
Course Code: MKT501 Course Title: Marketing Management
Course Instructor: Deepak Pandey
Academic Task No.: 1 Academic Task Title:
Date of Allotment: 02/29/2016 Date of submission: 03/28/2016
Student’s Roll no: B34 Student’s Reg. no: 11502658
Evaluation Parameters:
Learning Outcomes: (Student to write briefly about learnings obtained from the academic tasks)
Declaration:
I say publicly that this Task is my separate work. I have not trite it from any other student’s effort or from any
other source except where due acknowledgement is made explicitly in the text, nor has any part been written for
me by any other person.
Student’s Signature:
Raashid
Evaluator’scomments (For Instructor’s use only)
General Observations Suggestions for Improvement Best part of assignment

2. 2 Hindustan Unilever Limited
MARKETING MANAGEMENT
MKT501
Mr. Deepak Pandey
Assignment-1
Prepared by:
Malikzada Raashid Rashid
Roll No:-B34
MBA 2015-17
Lovely School of Business and Applied Arts
Lovely Professional University, Punjab
India
March 28th, 2016
Registration ID:-11502658

3. 3 Hindustan Unilever Limited
ACKNOWLEDGEMENT
I hereby take an opportunity to express my thoughtful thankfulness of all those who have assisted and heartened
me towards the successful completion of the assignment of marketing management. It has been a prodigious
experience doing the assignment under the supervision of Mr. Deepak Pandey. I am highly grateful for his
support and gentle attitude which assisted me a lot and prepared my project a success.
Above all my family members have always been my biggest supporters. In spite of my serious efforts to
complete this project if i had committed any error it should be looked upon with sympathy.
Malikzada Raashid Rashid
Signature

4. 4 Hindustan Unilever Limited
In the year 2002, the company made its foray into Ayurvedic health & beauty centre category with the Ayush

5. 5 Hindustan Unilever Limited
Source: www.capitaline.com

6. 6 Hindustan Unilever Limited
HUL Businesses

7. 7 Hindustan Unilever Limited
HUL Businesses
HUL is the market pioneer in Indian end user products with occurrence in over 20 consumer groups such as,
tea, detergents, and soaps and cleanses amongst others with over 700 million Indian customers consuming its
goods. The "greatest trustworthy goods from Hindustan Unilever Limited in the pre-eminent hundred list are:
Lux, Clinic Plus, Surf Excel, Rin, Close up, Pond’s, Lifebuoy, Pepsodent, Dove, Sunsilk, Fair & Lovely, Vim,
Vaseline, Pears, Wheel, Lakme.
The newest introductions for Hindustan Unilever include: Schezwan and Hot & Spicy, Knorr Chinese Noodles,
Lakme Lip Love, Magnum Choco Cappuccino, Lakme Absolute Sculpt Range, and Axe Gold Temptation.
Home Care

8. 8 Hindustan Unilever Limited
Personal Care
Foods and Beverage

9. 9 Hindustan Unilever Limited
Analysis of Distribution Network of Hindustan Unilever Limited with Respect to ITC
As per as the distribution network of HUL is considered i have analyzed their distribution network in following
aspects which basically is viz;
Distribution system of Hindustan Unilever Limited
Hindustan Unilever Limited’s products are distributed from side to side a grid of 7,000 redistribution stockists,
wrapping 6.3 million retail channels accomplishing the whole urban residents, and nearby 250 million rural
customers. There are 35 C&FAs in the nation who feed these redistribution stockists often. The all-purpose
trade involves grocery stores, wholesale, chemists, kiosks and general stores. HUL offers tailor made services
to each of its channel partners. It has established consumer management and supply chain competences for
accompanying emerging self - service stores & super markets. Nearby 2,000 suppliers & associates serve
HUL’s 40 manufacturing plants which are decentralizedacross2 million square miles of territory.

10. 10 Hindustan Unilever Limited
Distribution at the Villages:
Hindustan Unilever brings all markets with a total population of below 50K under just one rural sales
organization. The team consists of exclusive redistribution stockists and an exclusive sales force. The team
concentrates on building very superior availability of HUL’s products.
When it comes to rural area the network directly covers an about 50K village which then reaches 250 million
consumers through 6000 sub-stockists.
Distribution Management at the Urban Centers:
Distribution of goods beginning the manufacturing place towards C & F representatives take place
through both the trucks & road and rail network subject to the time factor for supply and cost of
shipping. Normally the manufacturing place is positioned so that it shelters a bigger geographical part
of India. Beginning the C & F agents, the merchandises are transported to RS’s by means of trucks
& the products lastly make the ‘last mile’ based on the local prevalent and low-priced means of
transport.
New Distribution Channels

11. 11 Hindustan Unilever Limited
Its Improving means of support and 75000 poor females have profited with an extra earnings of Rs.18.75 Crore
through a livelihood development programme recognized by a unique corporate-NGO partnership.
Supply at the Supermarkets
It has established a full-scale sales firm, for this channel to help modern retailing openings.
Merchandise tests and in-store sampling is delivered to customers.
Harnessing Information Technology
An IT-powered structure has been applied to supply stocks to redeployment stockists.
The objective is to make the product available at the exact place and exact time in the most price
effective manner.
For this, stockists have been joined through an Internet-based grid, called RS Net, for online
interaction.
RS Net is portion of Project Leap, HUL's end-to-end supply chain.

12. 12 Hindustan Unilever Limited
Pioneering New Channels
Hindustan Unilever is instantaneously crafting innovative channels, designed on the similar code of holistic
contact with customers.
 Project Shakti: Hindustan Unilever Limited's conglomerate with Self Help Groups of rural women. On
track in 2001, Project Shakti has already been prolonged to about 50,000 villages in 12 states - Andhra
Pradesh, Gujarat, Karnataka, and others.
 Hindustan Unilever Network (HUN): it is the corporation's arm in the Direct Selling channel. It grants
a variety of modified offerings in Foods , Home & Personal Care.
 Out-of-Home: this transactions in providing vending machines for hot drinks like tea & coffee. HUL’s
alliance with Pepsi Co. has expressively strengthened the channel.
 Health and Beauty facilities : Lakme Salons offer specialised beauty facilities and solutions, under the
familiar power of the Lakme product. The Ayush Treatment Centres deal easy access to authentic
Ayurveda treatments and products.
INDIAN TOBACCO COMPANY (ITC)
One of the hardest opponents for any other FMCG business in India is Indian Tobacco Company. ITC has
various kinds of diverse products. The warehousing ability of ITC is more than 3.5 million Sqft over 55 places.
ITC follows straight distribution from factories to distributors.
The distribution Network of Indian Tobacco Company is given below:-
Agreeing to the Annual Report of Indian Tobacco Company, the firm has made substantial investments to scale
up its trade marketing & distribution. Brilliance in channel management, considerable investments in training,
state-of-the-art technology solutions and development of the sales team has improved its competitive
capabilities.
The biscuit trade (Sun-feast) concentrated on supply chain competences to surge the product freshness and
increase logistic charges and till needed scale is attained, the concern will have to tolerate a great cost base in
the interim, as the aids of disseminated manufacture to service proximal markets are yet to be entirely exploited.
To improve quality differentiation through the value chain, ITC have established farm-to-factory spices supply
chain that promises higher specifications and quality qualities. Some damage occurred in cigarette production in
the Simra factory of the Terrain area owing to numerous strikes and barriers. But it was reduced by the
company’s pro-active sources and supply chain management. In the Agro-forestry mission of the firm ITC have

13. 13 Hindustan Unilever Limited
formed a source of long term supportable supply of serious raw materials. In the paper and paperboard business,
the conservative nursery system was changed by a novel machinery that guarantees significant time reduction in
nurturing eucalyptus saplings with advances survival rates. This has absolutely crushed the fibre supply chain in
paperboard business and the paper.

14. 14 Hindustan Unilever Limited
Analysis of Promotion Mix of Hindustan Unilever Limited:
Promotion communicates to communicating with consumers. It will offer information to support them in
constructing a choice to purchase a product or service. The cost linked with promotion regularly signifies a
good-sized part of the overall cost of creating an item. On the other hand, effective promotion supports to build
long term bond. With improved sales due to promotion, costs are spread over a bigger output.
When it comes to Hindustan Unilever Limited India, HUL overall expenditure on advertisement is up to 18%
and it mainly emphasize in Television advertisement. For targeting Rural Indian the company use many
promotion strategies like.
Project Bharat(1998-99)
Shakti campaign
Life boy Swasthya Chetana (2002)
Promotion mix of HUL wanted for improved selling channel persistence. HUL uses various media for
advertisement like
newspaper,
Internet, etc.
television,
Personal or direct selling is also one portion of HUL, they used that tactic in rural area.
Publicity is also crucial means of promotion mix, HUL use publicity through viz
welfare social work,
sponsorship
event organization(Olympic-2012) and so on.
When it approaches to advertising promotions, Hindustan Unilever (HUL), India’s major consumer goods
corporation, at no time pauses from taking on opponents by responsively naming them or associating itself with
them in advertisements across media. But in a rare connotation, the corporation has taken the assistance of top
washing machine makers to endorse its Surf Excel Matic detergent powder, setting the attention firmly
on FMCG (fast-moving consumer goods) cross-promotions.

15. 15 Hindustan Unilever Limited
Strategies in Pepsodent
Beside with a deal of free dental check-ups, Hindustan Unilever Limited is also forecasting to organise
health camps connecting villagers to strengthen its campaign.
To endorse Pepsodent, HUL will also propose free samples to people of villagers to try out the product
and give discount coupons on wrapper redemption schemes.
Discounts
Throughout their promotional offers, Pepsodent sells its goods at a discounted rate.
Otherwise they offer products with offers. E.g. 150g + 150g or Buy 1 get 1 free = Rs 40 and not Rs 50
Marketing mix with Promotion India
First national detergent product on TV
Different format of communication
Organizing numerous events such as Children festival
Sales promotion through aggressive pricing
Quality centric approach which means Surf excel = 10 hands power.
Very much engaged with society mainly children
Providing tips for the children on outdoor games

16. 16 Hindustan Unilever Limited
Some Interesting Promotional activities followed by HUL
One of the promotional campaign followed by HUL for Surf Excel Product
Daag of Anchaar, Paint & Clay are not big deal for Surf Excel to eliminate.
So, enjoy the moment of DAAG.
Daag ache hain!

17. 17 Hindustan Unilever Limited
Promotion Mix of their Competitor:
The promotional strategy which Indian Tobacco Company is using is as follows viz;
Consumer promotion
Fragrance oriented and eco friendly
Media
Radio
Hoardings
Newspaper
Various promotional offers
They are following different kinds of campaign and recently After the Maggi fiasco, ITC has rolled out an
advertising drive that highlights on the safety and superiority of its Yippee noodles, which it retails under the
Sun feast brand. Yippee noodles, a prominent advertiser in the instant noodle group, had gone off air after
worries were upraised over the safety of Nestles Maggi product and some other instant noodle products. The
innovative Yippee noodles commercial, formed by the Ogilvy & Mather, displays the factory where product is
manufactured. The commercial was being telecast on general entertainment channels , kid's channels and
various music channels. Campaign was further augmented by an initiative You Ask We Answer through
numerous media. The campaign on Sun feast Yippee highlights ITC's uncompromising commitment to quality
and safety.
In order to create its brand name Sun-feast made a systematic research of the market and after investigating it
decided to start its promotional doings. In order to made its brand a household name it has launched
exhilarating and innovative campaigns that signifies the numerous qualities of its products like the flavour and
exclusive taste. With a diversity of biscuits, they have tried to target children & homemakers as these are the
two key influences in an Indian household.
In order to promote its variety of food merchandises very famous actors and sports personalities have been
hired. Sachin Tendulkar who is cricket Guru, Shah Ruukh Khan King of Bollywood, Sania Mirza renowable
tennis star have all been brand ambassadors at one time. Television, newspapers, magazines have proved to be
an effective and powerful medium for advertisements as they are able to spread alertness among every age
cluster of people. The slogan ‘Spread the Smile’ has turn into the spirit of the brand and the catchy and colorful
advertisements have aided the company in obtaining a big share of the market.
It is fascinating to know that Sun-feast devotes more on the advertising of products which are first-class or are
in a highly competitive segment. Thus, we will find sun-feast spending more on products such as Dark fantasy
line of products and also on Sun-feast pasta and noodles as these are the main stars for the brand.