“ASSIGNMENT HOW HUL HAVE A COMPETITIVE

ADVANTAGE OVER OTHER FMCG COMPANIES IN TERMS

OF THEIR PRODUCT”

AMIT KUMAR (Reg.-5019)

OF
VISHWA VISHWANI INSTITUTE OF SYSTEM AND
MANAGEMENT

SUBMITTED TO
PROF: AANAND
The main objective of this assignment is to find, what the steps Hindustan Unilever Ltd. is
adapting to be market leader and to differentiate itself from its competitors. What is the steps
company is utilizing to find current trend in the market?

Most of the product of HUL comes in the category of convenience products. They are frequently
used and bought by the customers. There is large no. of players in the market, who are supplying
similar product to the customers.
Now, customers have become smart, they have great knowledge of market, product and
suppliers. So, they are looking for the product which is providing something extra.
HUL has a wide range of product in FMCG sector, covering almost every needs and wants of the
customers. It has products for child, young & adult, male & female, etc. so, it has to differentiate
its products taking into account the needs and demands of all the sectors of the society.
Not, only product but it has to look upon the services and feedback from. It should do something
to give after sales service and collect feedback from the customers.

Fast Moving Consumer Goods popularly known FMCG is as the name suggests is the most
demanded products in the market. It includes everything from food items the most demanded
products in the market. It includes everything from food items like flour, biscuits, ice creams, etc
to body products soaps, face creams to cigarettes like flour, biscuits, ice creams, etc to body
products soaps, face creams to cigarettes to beverages, etc. consumers need these things in their
everyday life so they invests to beverages, etc. consumers need these things in their everyday life
so they invests a good portion of their income in these things. There are so many companies a
good portion of their income in these things. There are so many companies which are dealing in
FMCG products like HUL, Dabur, Cavin Care, AMUL which are dealing in FMCG products like
HUL, Dabur, Cavin Care, AMUL dealing in dairy products, etc. By the very nature of the
product the companies are dealing in dairy products, etc. By the very nature of the product the
companies are seeing this as a great source of income. As large number of companies are looking
seeing this as a great source of income. As large number of companies are looking this sector as
a profitable venture, so for sustaining their position and gain newt his sector as a profitable
venture, so for sustaining their position and gain new market they have to bring something
unique in their products or services to gain market they have to bring something unique in their
products or services to gain position in the market or to sustain their position in the market or to
sustain there.

Portfolio of Strong Brands

Their main challenge was to reverse the down trading in the categories and re-establish the
relevance of their brands in the mind of the consumer. In 2000, they had 110brands, many
undifferentiated and lacking scale. They chose to focus on 35 power brands covering all
consumer appeal and price segments. They are already seeing the benefits. Six brands – Brooke
Bond, Lifebuoy, Lux, Fair & Lovely, Rin and Wheel –have emerged as mega brands in the last
five years, each with sales of more thanRs.500 crores.

Better Value
The first step was to ensure that they offer world class quality and real differentiation backed by
technology to give them the advantage over low priced competition. They have invested
overRs.400 crores, or 5% of sales, in the last three years to upgrade the brands. In several cases
they reduced prices to make the brands more affordable. Better quality and more affordable
prices have increased the value to the consumer. They have also launched several low unit size
and price packs for single use to make the brands more accessible to all income groups. For
example, they are the first to introduce a branded toothpaste in a tube at Rs.5 and a branded
quality shampoo in a bottle at Rs.5.
Technology, the Key Differentiator

Their brands and sound understanding of the local consumer are supported by a world class
Research and Development capability. They have over 200 of the brightest scientists and
technologists based in India.
Their recent reorganization leverages the talent pool from across 16 global technology centers, of
which four are in India. In all, they have over 4,000 high quality minds across Unilever working
relentlessly to provide new benefits that make a real difference to the consumers.

Winning with Customers

Hindustan Lever has historically had a strong bond with its customers. They have strengthened
this and reinvented the way they manage their distribution channels and their customers. The
sales structure has been transformed to leverage scale and build expertise in servicing Modern
Trade and Rural Markets. They have also de-layered their sales force to improve the response
times and service levels. Their customers are serviced on continuous replenishment. This is
possible because of IT connectivity across the extended supply chain of about 2,000 suppliers,
80factoriesand7, 000 stockiest. They have also combined backend processes into a common
Shared Service infrastructure, which supports the units across the country. All these initiatives
together have enhanced operational efficiencies, improved the service to the customers and have
brought us closer to the marketplace.

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.
The Company has been launching new products and brand extensions, with investments being
made towards brand-building and increasing its market share. HUL is also streamlining its
various business operations, in line with the ‘One Unilever' philosophy adopted by the Unilever
group worldwide.

CONCLUSION
In recent years, the FMCG sector declined due to down trading. Also because of presence of
large number of companies trying to seize this opportunity, this force the old HLL for the change
and thus, their transformation has resulted in a new HLL, which has successfully faced this
challenge and reversed this trend. It has done so by substantially strengthening their brands and
building capabilities. This has already begun to yield benefits and they are returning to growth.
Volume growth is being followed by value growth, which in turn is bringing profit growth.
India is one of the most exciting markets offering great potential. Over the next 10years, the per
capita income in India is likely to double. In FMCG, there is an opportunity to catalyze
penetration, increase usage, and upgrade consumers. As a result, the FMCG market is expected
to grow to over Rs.100,000 crores from its current base of Rs.40,000 crores.
The new Hindustan Lever sees an exciting opportunity for growth. They have 35powerful brands
covering all segments, with leading market positions in most. Today, these are stronger and more
relevant to the consumer than ever. The people are energized by the scale of the opportunity and
determined to seize it. The scale of the business and operations gives them the resources needed.
They are delivering good services and the changes they brought in the products are well taken by
the customers, by this they are generating sustainable profitable growth.