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HUL PRODUCT MIX
1. 1 Hindustan Unilever Limited
Annexure-V- Cover Page for Academic Tasks
Course Code: MKT501 Course Title: Marketing Management
Course Instructor: Rajesh Dobra
Academic Task No.: 1 Academic Task Title:
Date of Allotment: 01/26/2016 Date of submission: 02/23/2016
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 declare that this Assignment is my individual work. I have not copied it from any other student‟s work 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
Evaluator‟s Signature and Date:
Marks Obtained:
Segmentation Model - ____/5
Blue Print -_____________/10
Max. Marks: 30 Marks
Constraints - _____/5
Macro-Segment-_____/5
Micro-Segment-______/5
2. 2 Hindustan Unilever Limited
MARKETING MANAGEMENT
MKT501
Mr. Rajesh Dobra
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
February 26th, 2016
Registration ID:-11502658
3. 3 Hindustan Unilever Limited
ACKNOWLEDGEMENT
I hereby take an opportunity to express my profound gratitude of all those who have helped and encouraged me
towards the successful completion of the assignment of marketing management. It has been a great experience
doing the assignment under the supervision of Mr. Rajesh Dobra. I am highly thankful for his support and kind
attitude which helped me a lot and made 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
Company: Hindustan Unilever Ltd
Introduction:
Hindustan Unilever Ltd is India's largest fast-moving consumer goods. The company operates in seven business
segments. Soaps and detergents includes soaps, detergent bars, detergent powders and scourers. Personal
products include products in the categories of oral care, skin care (excluding soaps), hair care, talcum powder
and color cosmetics. Beverages include tea and coffee. Foods include staples (atta, salt and bread) and culinary
products (tomato-based products, fruit-based products and soups). Ice creams include ice creams and frozen
desserts. Others include chemicals and water business.
Hindustan Unilever Ltd was incorporated in the year 1933 as Lever Brothers India Ltd. In 1956, Hindustan
Vanaspati Mfg. Co. Ltd. and United Traders Ltd merged with the company and the name was changed from
Lever Brothers Ltd to Hindustan Lever Ltd. The company acquired Lipton in 1972, and in 1977 Lipton Tea
(India) Ltd was incorporated. Brooke Bond joined the Unilever fold in 1984 through an international
acquisition. Pond's (India) Ltd joined the Unilever fold through an international acquisition of Chesebrough
Pond's USA in 1986.
The liberalization of the Indian economy, started in 1991, clearly marked an inflexion in the company's and the
Group's growth curve. The removal of the regulatory framework allowed the company to explore every single
product and opportunity segment, without any constraints on production capacity. Simultaneously, deregulation
permitted alliances, acquisitions and mergers.
The erstwhile Tata Oil Mills Company (TOMCO) merged with the company with effect from April 1, 1993. In
the year 1996, the company and Lakme Ltd formed a 50:50 joint venture company namely, Lakme Unilever
Ltd, to market Lakme's market-leading cosmetics and other appropriate products of both the companies.
Subsequently in 1998, Lakme Ltd sold its brands to the company and divested its 50% stake in the joint venture
to the company.
In the year 1994, the company and US-based Kimberly Clark Corporation formed a 50:50 joint venture
company namely, Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary Pads. The
company also set up a subsidiary in Nepal, Unilever Nepal Limited (UNL), and its factory represents the largest
manufacturing investment in the Himalayan kingdom.
In the year 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with significant interests in
Instant Coffee. In the year 1993, it acquired the Kissan business from the UB Group and the Dollops Icecream
business from Cadbury India. As a measure of backward integration, Tea Estates and Doom Dooma, two
plantation companies of Unilever, were merged with Brooke Bond. Then in the year 1994, Brooke Bond India
and Lipton India merged to form Brooke Bond Lipton India Ltd (BBLIL), enabling greater focus and ensuring
synergy in the traditional Beverages business. Finally, BBLIL merged with the company with effect from
January 1, 1996.
The internal restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998. The two
companies had significant overlaps in Personal Products, Speciality Chemicals and Exports businesses, besides
a common distribution system since 1993 for Personal Products. The two also had a common management pool
and a technology base.
In January 2000, the government decided to award 74 per cent equity in Modern Foods to the company, thereby
beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners.
The company's entry into bread is a strategic extension of the company's wheat business. In 2002, the company
acquired the government's remaining stake in Modern Foods..
5. 5 Hindustan Unilever Limited
In the year 2002, the company made its foray into Ayurvedic health & beauty centre category with the Ayush
product range and Ayush Therapy Centres. In the year 2003, the company acquired the Cooked Shrimp and
Pasteurised Crabmeat business of the Amalgam Group of Companies, a leader in value added Marine Products
exports. Also, the company launched Hindustan Unilever Network, Direct to home business. In the year 2004,
the company launched 'Pureit' water purifier.
In the year 2005, Lever India Exports Ltd, Lipton India Exports Ltd, Merry weather Food Products Ltd, Toc
Disinfectants Ltd and International Fisheries Ltd were amalgamated with the company. In February 2006,
Vashti Detergents Ltd (VDL) merged with the company. In September 2006, Modern Foods Industries (India)
Ltd and Modern Foods & Nutrition Industries Ltd was merged with itself. In October 2006, the company
divested its 51% controlling stake in Unilever India Shared Services Ltd, now known as Capgemini Business
Services (India) Limited (CGSL) to Cap Gemini SA.
In March 2007, Sangam Direct, a non-store home delivery retail business, operated by Unilever India Exports
Ltd (UIEL), a fully owned subsidiary was transferred to Wadhavan Foods Retail Pvt Ltd (WFRPL) on a slump
sale business. Also, the company carried out demerger of its operational facilities in Shamnagar, Jamnagar and
Janmam and formed three independent companies, namely Shamnagar Estates Pvt. Ltd, Jamnagar Properties
Pvt Ltd and Hindustan Kwality Walls Foods Pvt Ltd. In June 2007, the company changed its name from
Hindustan Lever Ltd to Hindustan Unilever Ltd.
In the year 2008, the company announced its collaboration with the Indian Dental Association (IDA) in
conjunction with World Dental Federation (FDI) through its Pepsodent, leading oral care brand to help improve
the oral health and hygiene standards in India. In April 2008, the company demergered and transferred certain
immoveable properties to Brooke Bond Real Estates Pvt Ltd. In January 2010, the company inaugurated the
new corporate office of the company.
In April 2010, the company approved the scheme of amalgamation of Bon Ltd, a wholly owned subsidiary of
Hindustan Unilever Ltd., with the company. The appointed date for the abovementioned scheme was April 01,
2009 and the scheme shall be effective from April 28, 2010. Consequent to the amalgamation, Bon Ltd ceased
to be a subsidiary of the company.•
During the year 2010-11, Kissan forayed into new market segment in three big categories. It launched Kissan
Fruit & Soya, a delicious blend fruit juice and soya milk, which enjoys a differentiated proposition in this
market. The brand also entered into the Indian (non-sweet) spreads market with the launch of Kissan Creamy
Spread across key towns. In Bakery division, the company launched two new products, namely Chapi and
Cream Rolls. During the year, the company divested 43.31% stake in Hindustan Field Services Pvt Ltd in favor
of Smollan Group (the jv partner). Thus, Hindustan Field Services Pvt. Ltd. ceased to be a subsidiary company.
Lakme Lever Pvt Ltd, a wholly owned subsidiary of HUL, expanded the network of Lakme Beauty Salons
during the year with the opening of 11 company owned and managed salons, along with 18 franchisee salons.
As of March 31, 2011, the company had over 35 brands spanning 20 distinct categories. Its portfolio includes
household brands, such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Vaseline, Lakme,
Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall's and
Pureit.
In December 2011, the company demerged the FMCG exports business including specific exports related
manufacturing units of the company into its wholly owned subsidiary Unilever India Exports Ltd (UIEL). The
scheme became effective from January 1, 2012.
Source: www.capitaline.com
6. 6 Hindustan Unilever Limited
Top Management-HUL
Mr. Harish Manwani Chairman Mr.Sanjiv Mehta-MD and CEO
Mr. P. B. Balaji-Chief Financial Officer Mr. Pradeep Banerjee Executive Director
7. 7 Hindustan Unilever Limited
Vision of Hindustan Unilever Limited
Unilever is a unique company, with a proud history and a bright future. We have ambitious plans for
sustainable growth and an intense sense of social purpose.
A clear direction for Hindustan Unilever Limited
Our purpose is to make sustainable living commonplace. We work to create a better future every day, with
brands and services that help people feel good, look good, and get more out of life. In 2009, we launched The
Compass – our strategy for sustainable growth. It sets out our clear and compelling vision to double the size of
the business, while reducing our environmental footprint and increasing our positive social impact and gives
life to our determination to build a sustainable business for the long term. This is captured in the Unilever
Sustainable Living Plan. By combining our multinational expertise with our deep roots in diverse local cultures,
we’re continuing to provide a range of products to suit a wealth of consumers. We’re also strengthening our
strong relationships in the emerging markets we believe will be significant for our future growth And by
leveraging our global reach and inspiring people to take small, everyday actions, we believe we can help make
a big difference to the world. "We cannot close our eyes to the challenges that the world faces. Business must
make an explicit and positive contribution to addressing them. I’m convinced we can create a more equitable
and sustainable world for all of us by doing so,” “But this means that business has to change. The Unilever
Sustainable Plan is a blueprint for sustainable growth. And in 2014 we are strengthening our Plan with new
commitments to drive further transformational change.”
Hindustan Unilever Limited Priorities and Principles
Unilever is committed to supporting sustainability and providing our consumers around the world with the
products they need to look good, feel good and get more out of life.
A Better future for Children
Our oral care brands Signal and Close-Up encourage children to brush their teeth day and night for optimal
dental health. We also partner the FDI World Dental Federation, supporting oral health programmes around the
world. Unilever also partners the World Food Programme and launched the Together for Child Vitality
initiative to bring our expertise in nutrition to children in some of the world’s poorest countries.
A Healthcare Future
Our Flora/Becel margarine brands have been scientifically proven to help reduce cholesterol levels.Vaseline has
launched the Vaseline Skin Care Foundation, providing research into skin conditions and support for people
affected by them.Lifebuoy soap has long had a presence in developing markets around the world, and its
campaign to promote handwashing with soap was celebrated by 200 million people across 53 countries in 2013
Mission of Hindustan Unilever Limited
Unilever's mission is to add Vitality to life. We meet every day needs for nutrition, hygiene, and personal care
with brands that help people feel good, look good and get more out of life.
Competitors of Hindustan Unilever Limited
Dabur India
Godrej Consumer
Marico
Emami etc
Source: http://www.moneycontrol.com/competition/hindustanunilever/comparison/HU
8. 8 Hindustan Unilever Limited
Products of HUL in India
Hindustan Unilever Limited deals with the products related to foods, personal care, home care etc. and some of
the products of HUL are listed below:
Personal Wash: Lux. Lifebuoy, Liril, Hamam, Breeze, Moti, Dove, Pears and Rexona
Laundry:Surf Excel, sun light, Rin ,Wheel & Ala bleech
Dishwasher: Vim
Disinfectants:Domex, cif
Foods:Kissan (Jam,Ketchup,Squashes), Annapurna(Aata and salt), Knorr Soups,Modern Bread
Ice-cream:Kwality Wall's
Tea:Brooke bond, Lipton, Taj mahal
Coffee: Brooke bond bru
BeautyProducts : Fair & Lovely, Lakme, Ponds, Vaseline and Aviance
Hair-Care: Sunsilk naturals, Clinic , Dove and Lifebuoy
Oral-Care:Pepsodent and Close-up
Deospray : Axe and Rexona
WaterPurifier: Pureit
AyurvedicPersonal&healthcare:Ayush
9. 9 Hindustan Unilever Limited
List of Brands of HUL in India?
HUL is the market leader in Indian consumer products with presence in over 20 consumer categories such as
soaps, tea, detergents and shampoos amongst others with over 700 million Indian consumers using its products.
The "most trusted brands" from HUL in the top 100 list) are: Lux, Surf Excel, Clinic Plus, Rin, Lifebuoy, Close
up, Pond’s, Pepsodent, Fair & Lovely, Dove, Sunsilk, Vim, Wheel, Vaseline, Pears, Lakme.
The latest launches for Hindustan Unilever include: Knorr Chinese Noodles, Schezwan and Hot & Spicy,
Lakme Absolute Sculpt Range, Lakme Lip Love, Magnum Choco Cappuccino and Axe Gold Temptation.
Its brands include:
Food Brands:
Its brands include: Food brands:
Annapurna salt and atta
Bru coffee
Brooke Bond (3 Roses, Taj Mahal, Taaza, Red Label) tea
Kissan squashes, ketchups, juices and jams
Lipton tea
Knorr soups & meal makers and soupy noodles
Kwality Wall's frozen dessert
Modern Bread, ready to eat chapattis and other bakery items(now sold to Everstone Capital)
Magnum (ice cream)
Homecare Brands:
Active Wheel detergent
Cif Cream Cleaner
HUL
BRANDS
FOOD BRANDS HOMECARE BRANDS
PERSONEL CARE BRANDS WATER PURIFIER BRANDS
10. 10 Hindustan Unilever Limited
Comfort fabric softeners
Domex disinfectant/toilet cleaner
Rin detergents and bleach
Sunlight detergent and colour care
Surf Excel detergent and gentle wash
Vim dishwash
Magic – Water Saver
PERSONAL CARE BRANDS:
Aviance Beauty Solutions
Axe deodorant and after shaving lotion and soap
LEVER Ayush Therapy Ayurvedic health care and personal care products
Breeze beauty soap
Clear anti-dandruff hair products
Clinic Plus shampoo and oil
Close Up toothpaste
Dove skin cleansing & hair care range: bar, lotions, creams and anti-perspirant deodorants
Denim shaving products
Fair & Lovely skin-lightening products
Hamam
Lakmé beauty products and salons
Lifebuoy soaps and handwash range
Liril 2000 soap
Lux soap, body wash and deodorant
Pears soap
Pepsodent toothpaste
Pond's talcs and creams
Rexona soap
Sunsilk shampoo
Sure anti-perspirant
Vaseline petroleum jelly, skin care lotions
Tresemme
TIGI
WATER PURFIER BRANDS:
Pureit Water Purifier
Source: HUL’s website
11. 11 Hindustan Unilever Limited
Product Line of Hindustan Unilever Limited
Product Line:
A group of related products manufactured by a single company. For example, a cosmetic company's makeup
product line might include foundation, concealer, powder, blush, eyeliner, eyeshadow, mascara and lipstick
products that are all closely related. The same company might also offer more than one product line. The
cosmetic company might have a special product line geared toward teenagers and another line geared toward
women older than 60, in addition to its regular product line that can be used by women of any age.
Hindustan Unilever Limited Product Line:
The product line of HUL is shown below
12. 12 Hindustan Unilever Limited
Analysis of Hindustan Unilever Limited Product Line:
The product line of HUL is 12 which consists of Tea , Coffee , Food , Fabric Care , Kitchen and food care ,
personal wash , skin care and cosmetics , hair care , Deodorants , Oral care , Water purifier which comes under
the four broad parents super sets which is Food Brand , Homecare Brands , Personal care brands and the last
one is Consumer goods.
1. Tea: if we expand tea it includes Brooke bond red label, Lipton, Brooke bond 3 Roses, Brooke
Bond Taaza, and Brooke Bond Taj Mahal.
2. Coffee: It includes Brooke Bond Bru.
3. Food: it includes kissan, knorr, Annapurna, Modern.
4. Ice cream: it includes kwality walls.
5. Fabric Care: it consists of surf excel, Rin, Active wheel, Sunlisght and comfort.
6. Kitchen and floor care: Domex, cif and Vim.
7. Personal Wash: Lux, Life Buoy, Liril 2000, Dove, Hamam, Breeze, Pears.
8. Skin Care and cosmetics: it will include fair & lovely, Ponds, Vaseline, Aviance, Lakme, and
Ayush.
9. Hair Care: Sunsilk, Clinic plus, Clear, Tresemme.
10. Deodorants: Axe.
11. Oral Care: Close-up and pepsodent.
12. Water Purifier: Pure-it.
Product Length of Hindustan Unilever Limited:
For knowing the product length of HUL we will draw a chart of different brands as alone which will help in
knowing the product length of Hindustan Unilever Limited and the ist brand for which I will be drawing the
chart is Food Brands.
13. 13 Hindustan Unilever Limited
Tea= 5, Coffee= 1, Food= 4, Ice Cream=1
Now for Homecare brands the chart is below:
In this brand if we analyze the chart it include the following composition
which is:
Fabric care = 4
Kitchen= 3
Personal Care Brand:
Personal Wash= 6
Skin Care and Cosmetics= 6 Hair Care= 4 Deodorant= Axe Oral Care= 2
14. 14 Hindustan Unilever Limited
Total Product Length of Hindustan Unilever Limited:
Tea 5
Coffee 1
Food 4
Ice Cream 1
Fabric Care 5
Kitchen and Floor Care 3
Personal Wash 7
Skin Care and Cosmetics 6
Hair Care 4
Deodorant 1
Oral Care 2
Water Purifier 1
TOTAL 40
Now by adding the numbers from each category we will get the following expression which is:
PRODUCT LENGTH= 5+1+4+1+5+3+7+6+4+1+2+1
PRODUCT LENGTH = 40
Therefore the product length of HUL is 40.
15. 15 Hindustan Unilever Limited
Product Width of Hindustan Unilever Limited:
Product Width:
Product width means number of different product lines carries by the company and as per as HUL is considered the
company has following product width viz;
Personal Care= 5
Home Care= 2
Food= 4
Consumer goods= 1
PERSONAL WASH
SKINCARE AND COSMETICS
HAIR CARE
DEODORANTS
ORAL CARE
FABRIC CARE
KITCHEN AND FLOOR CARE
TEA
COFFEE
FOOD
ICE CREAM
WATER PURIFIER
16. 16 Hindustan Unilever Limited
Product Depth of Hindustan Unilever Limited:
The amount of sub-products offered by a business within a particular line of products. Increasing
a company's product depth can involve adding new, related products to an existing product line or increasing
the_number_of_varieties_of_a_particular_product_offered.The product line depth of the company can be
depicted_from_the_following_table_give_below
Soap
Lux Weight
Lux Almond 100 gm , 120 gm , 150 gm
Lux Orchid 100 gm , 120 gm , 150 gm
Lux Fruit 100 gm , 120 gm , 150 gm
Lux Saffron 100 gm , 120 gm , 150 gm
Lux sandalwood 100 gm , 120 gm , 150 gm
Lux Rose 45 gm ,100 gm , 120 gm , 150 gm
Lux International 45 gm ,100 gm , 120 gm , 150 gm
Luc Chocolate 100 gm , 120 gm , 150 gm
Lux oil and Honel Glow 100 gm , 120 gm , 150 gm
DOVE Weight
Dove Cream Beauty 75 gm , 120 gm.
Dove Fresh Touched 75 gm , 120 gm.
Dove Sensitive Cleansing Bar 75 gm , 120 gm.
Dove Coconut Milk soap 75 gm , 120 gm.
LIFE BUOY Weight Available Color
Life Buoy Total 10 100 gm , 120 gm , 150 gm Red
Life Buoy Clini Care 75 gm , 100 gm. Light Blue
Life Buoy Lemon 75 gm , 120 gm. Light Green
Life Buoy Care Soap 100 gm , 120 gm. Red, White
18. 18 Hindustan Unilever Limited
Clinic Plus Size price
Clinic Plus Strong an Long 30ml , 340ml , 650ml 55 , 212 , 345
Clinic Plus + Natural Healthy 30ml , 340ml , 650ml 50 , 208 , 312
Clinic Plus With Herbal Extracts 30ml , 340ml , 650ml 55 , 212 , 345
** Also Available in small sachets with price Range Between Re.1 to Re 5 and that too with different flavours.
TRESemme Size price
TRESemme Smooth and Shine
Shampoo
85ml , 100ml , 200ml , 225ml ,
580ml
Range between 70-360 Rs
TRESemme Keratin Smooth
Shampoo
85ml , 100ml , 200ml , 225ml ,
580ml
Range between 70-360 Rs
TRESemme Ionic Strength
Shampoo
85ml , 100ml , 200ml , 225ml ,
580ml
Range between 110-415 Rs
Deodorant’s
AXE SIZE PRICE
Axe Dark Temptation 150ml 195
Axe Provoke 150ml 195
Axe Gold Temptation 150ml 195
Axe Dark Temptation Shower 150ml 185
Axe Signature 150ml 225
Axe Blast Deodorant 150ml 180
Axe Apollo 150ml 195
Axe Dark Twist 150ml 185
Axe Musicstar 150ml 176
Axe Chocolate 150ml 210
Axe Dark Temptation Body 150ml 195
19. 19 Hindustan Unilever Limited
Oral Care
Closeup Weight Price
Closeup Deep Action Red 150 gm 132
Closeup Fire Freeze Gel 80 gm and 150 gm 55 , 100
Closeup Deep Action Eucalyptus 80 gm and 150 gm 55 , 100
Closeup Deep Action Lemon 80 gm and 150 gm 49 , 99
** Also Available in small packet worth Rs 10
Pepsodent Weight Price
Pepsodent Gum care tooth Paste 40 gm , 90gm , 140 gm 55 , 78 , 172
Pepsodent 2 in 1 tooth Paste 150 gm 90
Pepsodent Germicheck 200 gm 84
Pepsodent Whitening Germicheck 80 gm , 200 gm 46 , 89
** Also Available in small packet.
Water Purifier
Hul Pure it WPWL 100 Classic 23-Lite Purifier
Available Colors: Blue and White
Size 23 Liter
Product Dimension 61.2*34.5*34.5 cm ; 4.8 kg
20. 20 Hindustan Unilever Limited
Creams (Beauty)
Fair and Lovely Weight Price
Fair and Lovely Multivitamin
cream
25 gm , 50 gm , 80 gm 45 , 89 , 130
Fair and Lovely Advanced
Multivitamin
15 gm , 25 gm , 30 gm 21 , 47 , 69
Fair and Lovely Anti Marks 25 gm , 50 gm 65 , 120
Fair and Lovely Ayurvedic Cream 25 gm , 50 gm 65 , 120
Fair and Lovely Winter fairness 25 gm , 50 gm 52 , 110
Fair and Lovely Max Fairness Men 9gm , 15 gm , 25gm , 50 gm 10 , 32 , 65,130
PONDS Weight Price
Ponds White Beauty Anti Spot 9gm , 25 gm , 35 gm 10-124
Ponds White Beauty Daily Spot 9gm , 25 gm , 35 gm 12-89
Ponds Whit Beauty SPF 18 gm 140
Ponds Lightening Cream 20 gm 37
** Also Available in Small Sachets
LAKME Weight Price
Lakme Complexion Care 30 ml 275
Lakme Perfect Radiance 50 gm 265
Lakme Absolute Skin Gloss 50 gm 415
Lakme 9 to 5 Insta Light 40 gm 149
Lakme Skin Gloss Winter 50 gm 220
Lakme Perfect Radiance 50 gm 315
Lakme Peach Milk 120ml 220
Lakme Youth Infinity 50 gm 725
23. 23 Hindustan Unilever Limited
Competitor Parle Product Mix:
Colgate vs Pepsodent (Tooth Paste):
Colgate is a complete company with its major focus being dental health. Hence colgate has several times come
out with variants like Colgate for sensitive teeth, normal colgate, colgate gel etc. However, whatever innovation
it brings, Pepsodent is not far behind. Pepsodent is a strategic business unit of Hindustan unilever ltd and is one
of the toughest competitor for Colgate. These two toothpaste brands have always been at loggerheads and the
situation does not look like improving in the near future. Where colgate has the brand value, Pepsodent has the
powerful distribution suppot of HUL. Because of all other products of HUL, pepsodent reaches even rural areas
easily and hence has a high turnover.
24. 24 Hindustan Unilever Limited
HUL vs P&G (Detergents, shampoos, soaps) –
The mother of all FMCG rivalries, a rivalry which is observed closely everyday, yet it is observed from the
point of view of products and not the umbrella brand. The HUL vs P&G rivalry exists in every retail counter or
modern retail showrooms. And it is most prominent in personal care or hygiene products like Detergents,
shampoo, soaps, and others. P&G has head and shoulders, HUL has dove. P&G has Olay, whereas HUL has
Sunsilk and Tresemme. P&G has Old spice, HUL has Axe. Thus, powerful products are present in both the
companies, both of them die hard rivals to each other. However, each of the companies have their own
trademark products as well. For exampel HUL has Pure it which P&G does not have.
Amul vs Kwality walls (Ice cream) –
The ice cream market has two major competitors who take away the majority market share within themselves.
These two are Kwality walls and Amul ice cream. Out of these two, Amul has been an established ice cream
player since decades in India. However, once Kwality walls entered the market, it has taken away the market by
storm by introducing many different types of ice cream which the customers loved. Furthermore, because of the
deep pockets of HUL, Kwality walls could market itself much better.
25. 25 Hindustan Unilever Limited
Pricing Strategy of Hindustan Unilever Limited:
Price is an important element in marketing mix, because it directly relates to revenue generation. Price is the
one, which creates sales revenue – all other parts of marketing mix are costs. Pricing has to be done whenever a
new product is launched, its variant is launched, a product is launched in new geographies, to counter
inflationary trends, or company bids for industrial customers.
HUL has adopted the Market Penetration Method of pricing. It focuses on the quality of the products keeping in
mind the pricing strategy. This helps improve and generate large sale volume for their products. It aims at
maximizing the market share and to produce new product lines. A few examples are:
Lux soap small @ 10 Rs
Knorr Soaps @ 10 Rs
Lifebuoy @ 22 Rs
Hamam family pack @ 95 Rs
Wheel Detergent @ 10 Rs
Vim Bartan Bar with option of 10 Rs and 20 Rs
Taj Mahal with range of 10-75
Clinic , Sunsilk , Dove shampoo sachets @ 2Rs , 5 Rs
As per as the HUL is considered, realizing that the consumers do not necessarily upgrade in a linear fashion
HUL offered products at every price point and provided value added options for different product categories by
practicing segmented marketing. For example, Indian detergent market is structurally like a pyramid: laundry
soap, low priced detergents, mid-priced detergents and premium powders. HUL has Wheel laundry soap, Wheel
detergent powder and International Wheel Active at the base. Rin Shakti powder and bar, Sun Light powder and
Super 501 bar at mid-price level and International Surf Excel at the top.
As per as the Lux is considered , Hindustan unilever India provides worthy or we can say it's value for money
product_to_their_customer_in the form of LUX beauty soap. This company faces the Indian market
competition with_the_local_market beauty soap product; therefore they try to give their product which is
having good quality at cheaper rate or product which normal consumer can afford so they can take over the
most_of_the market share. Beauty soap and beauty products are in huge demand in Indian market. in any
market if a company change the product price then there is high risk of price war between the competitor and
this thing will automatically leads toward a profit and loss. Its prices are nearly or lesser to the other
soap available in the Indian market.
The shampoo experience was offered at a price that delighted the consumers of very specific target audience of
lower middle with low monthly household incomes. The company observed that target market would consider
buying a shampoo only if it was within their range. The insight that shampoo sachet of Rs.2 makes the monthly
budget for average family size of a five having one wash per week to be Rs.40. This was too much and if it
could be reduced to the budget of the Rs.2 per person per month and the family budget of Rs.10, they would
definitely use a shampoo. This led to the idea to create 2 to 5 Rs shampoo sachet, which initially seemed almost
impossible but with few years of research of formula and packaging; it was launched and was the great success
for HUL and these sachets include dove and other brands which falls under the line of shampoos.
26. 26 Hindustan Unilever Limited
Pricing Strategy of Competitors:
PARLE PRICING STRATEGY: - Parle G has adopted the Market Penetration strategy i.e. low price along with
capturing of a large market Also they focus on low prices and provide good quality products at the same time,
which means it uses the value pricing method. This benefits Parle G by having a competitive edge in terms of
large market share which is around 40%: both rural and urban presently.
For setting the price of Parle hide & seek biscuit, a survey was taken in the urban &semi-urban markets; on the
basis of which hide & seek was introduced. It was found that the potential consumers were ready to pay a
premium price for an innovative product like chocolate chip biscuits. Thus, Parle adopted market skimming
where the product is high priced and also of high quality. It includes the cost of chocolates, packaging & other
processing cost. All these show customer status, which is also one of the reasons for parle hide & seek’s high
price.
A separate example for explaining the pricing strategy of Parle is its product Parle Creams For this product
Parle uses going rate method only as a reference rate. In this case, Parle Creams were introduced after
Britannia’s Cream Treats with similar variants but at Rs.5 per packet of biscuit and not Rs.10 like that of
Britannia’s cream treats.
GODREJ CONSUMER GOOD PRICING STRATEGY: - Godrej Consumer Products introduced smaller pack
sizes of some of its soap and put the 50 gm cakes of Cinthol, and Fair Glow at Rs.5 while Godrej No.1 offered
for Rs.4 meant especially for states like Bihar, Madhya Pradesh and Uttar Pradesh to increase per capita
consumption.
PROCTOER & GAMBLE PRICING STRATEGY: In 1990’s era, P&G incorporated value pricing strategy.
The company adopted this strategy by cutting its coupon, production and logistical cost by effectively
increasing efficiency and it increased its advertising by 20 percent. Within the period of six years this strategy
resulted in higher brand loyalty and stronger brand image. The strategy of P&G was quite opposite to that of
competitors and marketing practices on that time but resulted in greater success. Now days, P&G has the most
effective pricing of its brands and customer loyalty is as enough that they are willing to pay extra for company’s
brands. P&G gives discount offers on its different products time to time but not frequently as it experienced in
1990s that coupon and discount only decrease customer’s brand loyalty
Comparing pricing strategy of the companies Viz HUL, Parle etc it can be concluded that both the companies
are operating with similar pricing strategy which is penetrative and competitive in nature and are able to cater
the needs of Indian customers and as per as the HUL is considered they have the huge market share in Indian
market in context to Parle, godrej consumer goods, Britannia and so o.