HUL Srishti
HUL Srishti
FOM Project
Contents
Introduction and History of Hindustan Levers, Vision, Values
HUL marketing Strategy
HUL Marketing Structure
HUL marketing MIX on 4P Framework (Product, Price, Promotion, Place )
1. Products
Kissan, Horlicks, BRU and Lipton, Clinic Plus, Grow & Lovely, TRESemmé, Agri-commodities- Sahyadri Farms
2. Pricing
3. Promotion
WiMI- Winning in Many India’s, Sunsilk and Haircare, Dove
Lakmé and Indulekha, Surf, Rin, Vim and Domex, Red label, Kwality Walls
4. Place- Retail Channel, Shakti initiative, Traditional Kirana stores, Shikhar – HUL e-B2B solution for online ordering
The Pharma channel, Sustaining and Surviving Channel and Network post Covid
Digital Intervention in Marketing Mix
HUL Responsible Sourcing & Business Partner Policy (RSBPP)
HUL Marketing Strategy-Five Growth Fundamentals
1. Developing HUL portfolio
2. Brands, Agile Innovation Hub
3. Channels
4. Building differentiated structure and capabilities, HUL Reimagine
5. Building a purpose-led, future-fit organization and growth culture
Introduction and History of Hindustan Levers
• Crates marked ‘Sunlight’ landed at the Kolkata harbor, over 130 years ago, in 1888. Subsequently, many more brands HUL launched
that became household names - such as Lifebuoy in 1895, followed by Pears in 1902, Lux flakes in 1905, and Vim scouring powder in
1913.
• In May 1933, the Company set up a soap factory in Mumbai and on October 17th, the same year, Lever Brothers India Limited was
incorporated in India. A new chapter had begun in the journey - one marked by innovation and growth, mergers and acquisitions; one
in which HUL overcame challenges and strove to become the largest FMCG Company in India. Lever Brothers India Limited, Hindustan
Vanaspati Manufacturing Company Limited and United Traders Limited merged in 1956 to form Hindustan Lever Limited (HLL), and the
first shares HUL were offered by the Company to the public. The Company’s name changed to Hindustan Unilever Limited in 2007.
• From simple beginnings, HUL has grown with the times through HUL deep understanding of India and Indian consumers. HUL made
strategic mergers - the Company acquired the Tata Oil Mills Limited in 1994, one of the largest mergers in the sector at the time. The
Company made acquisitions that brought us brands like Kissan, Kwality and Lakmé. Brooke Bond India and Lipton India merged in
1994 to form Brooke Bond Lipton India Limited, which merged with HLL in 1996, and in 1998, Pond’s India merged with the Company.
• During 2020, in one of the largest FMCG M&A transactions, GlaxoSmithKline Consumer Health Limited (GSK CH) merged into with HLL
which added the iconic brands Horlicks and Boost to the portfolio. HUL became the first FMCG Company to set up a research Centre in
the 1960s. In the 1970s, HUL supported the Government’s drive to develop rural India by setting up manufacturing operations and
developing livelihood opportunities around them. At the turn of the new millennium, the Company launched the rural health and
hygiene initiative ‘Lifebuoy Swasthya Chetna’ and the livelihood initiative ‘Project Shakti’ that helps rural women become
entrepreneurs.
• To address the water challenges in the country, HUL launched Hindustan Unilever Foundation, a not-for-profit subsidiary in 2010. To
address social, environmental and economic challenges and concerns of local communities, HUL launched Project Prabhat a
sustainable community development initiative. The Company has grown with the times as it journeyed through history, always with
the belief that ‘what is good for India, is good for HUL’. Today, nearly 100 years later, Hindustan Unilever continues to work with the
same belief as it continues to strive towards a better future and helps people feel good, look good and get more out of life.
Vision , Values
Vision
HUL Vision is to be a leader in sustainable business. HUL will demonstrate how our purpose led,
future-fit business model drives superior performance delivering consistent, competitive,
profitable and responsible growth.
HUL Values :
Integrity: HUL do the right thing in every decision HUL make, supporting our long term success
Responsibility HUL take care of the people HUL serve and the world in which HUL operate
Respect HUL treat people with dignity, honesty and fairness, and celebrate the diversity of people
Pioneering: HUL has a passion for leading our industry, winning in the market, and intelligent risk-taking
• 9 out of 10 Indian households use one or more of HUL brands 16 brands with turnover of over
₹1,000 crores.
• HUL’s 50+ brands help people feel good, look good and get more out of life.
• HUL operate across 15 distinct categories, became Plastic Neutral in 2021, with about 100 years
of presence in the country
• HUL brands are available in around 9 million outlets. HUL has over 21,000 employees.
HUL Marketing Growth Strategy – Consistent Growth, Competitive Growth, Profitable Growth, Responsible Growth
HUL Marketing structure
Place Promotion
Winning in Many India’s (WiMI)- Hyperlocal ( Campaign
HUL brands in over 9 million retail outlets
Network of 3500+ distributors, who are the backbone of HUL retail within Rohini Sec 16 different from Paschim Vihar)
reach. Covered 6.4 lac villages. Horlics TVC ( Tum kab itne bade ho gaye) capturing
HUL channel for large, organized retailers, e-Commerce and Omni children shaping into strong and confident adults.
channel customers as well as HUL own D2C platforms. Mother – daughter engagement, not limited to the
Horlics in each village and city with delivery within 15 minutes intrinsic physical growth benefits but to the courage and
of the orders being placed, D4C (Design for Channel) confidence that children display when they grow well.
Shikhar – HUL e-B2B solution – 8 lac stores “Bottle of love” Campaign in 2019
https://www.youtube.com/watch?v=ribHgYHX3lw
https://www.youtube.com/watch?v=K1u5T5eRK_c ( Award
winning- Taller stronger sharper)
Hyperlocal , Personalised , Influencer
Lakmé’s leading Beauty Tech Solutions
like virtual try-on and Artificial
Intelligence (AI) Skin Analyzer on its
D2C platform allow consumers to
replicate their offline journeys online.
Lakmé is the most followed Indian
beauty brand on Instagram with
around 30% of its sales now through
digital channels.
Influencer Marketing and lead the
curve on upcoming opportunities like
Social Commerce.
Shikhar B2B
Never a stock out ( 25% business loss
due to channel delays and
inefficiencies)
How will a Kirana Store order and how
a wholesaler would order?
Lakme – Horlics- Rin- Surf!
HUL Marketing Strategy-Five Growth
Fundamentals
1. Developing HUL portfolio
2. Brands
3. Channels
4. Building differentiated structure and capabilities
5. Building a purpose-led, future-fit organization and growth culture
Developing HUL portfolio
• HUL continue to invest in building a future-fit portfolio and create long-term value. HUL are strengthening
HUL core, creating categories of the future through market development, and driving premiumisation by
upgrading consumers to higher order benefits. HUL are driving growth in HUL core portfolio by focusing on
product superiority and building purposeful brands. HUL biggest brand Surf excel, for instance continued to
build its relevance through the iconic campaign ‘Dirt is Good’ and has been delivering strong results for us.
• With a wide and resilient portfolio that straddles the price-benefit pyramid HUL consumers are able to
choose their trusted brands at various price points. Even HUL highly penetrated categories like Fabric Wash
and Tea offer opportunities to grow through premiumisation. HUL brands like Surf excel, Dove, TRESemmé,
Brooke Bond are responding to the needs of the consumers and leading premiumisation in their respective
categories. In early 2021, HUL also setup the Premium Beauty Business unit (PBBU) to strengthen HUL play in
the fast growing ‘Masstige’ beauty segment. Overall, these actions has yielded good results as HUL premium
portfolio grew ahead of the rest of the portfolio during the financial year 2021-22.
• HUL has a strong track record of seeding and building scale in new categories through market development
activities. For instance, HUL liquid detergents and fabric conditioners grew 4 times in last 5 years to become
a ₹1,700 crores business. HUL is also covering portfolio white spaces through Mergers & Acquisitions.
Indulekha, a specialist natural hair care brand with strong Ayurveda credentials has grown 6x since its
acquisition in 2016. VWash, a female intimate hygiene brand acquired in 2020 is gaining good traction with
consumers.
Brands
• Winning with HUL brands as a force for good, powered by purpose and innovation HUL see an
increasing number of consumers preferring trusted brands that not only deliver great products, but
also positively impact people and planet.
• With more than 100 PhD scientists working across three R&D centers in India and access to the
work done by 5,000 people in Global R&D function of Unilever, HUL has the largest R&D function
across FMCG companies in India.
• Using worldclass technology, HUL continuously strive to bring superior products which are also good
for the planet. For instance, HUL brand Surf excel has launched a new formulation for its liquid
detergent with biodegradable actives, packed in 100% recyclable plastic bottles made with 50%
recycled materials. Horlicks has launched Diabetes Plus which is scientifically made to support
dietary management of at-risk and diabetic individuals.
Agile Innovation Hub
• By harnessing digital, artificial intelligence (AI) capabilities, as the latest IT solutions, HUL newly set
up Agile Innovation Hub is transforming HUL’s speed of innovation using a unique digital innovation
workflow.
Channels
• Leading in the channels of the future Advancement in technology is increasingly influencing consumer
behavior. While traditional Kirana stores continue to be the largest ecosystem for consumers to access their
favorite brands, e-Commerce is growing at a fast pace.
• There is also consolidation amongst customers, evolution of the e-B2B firms and Omni channel ecosystems.
With quick commerce, shoppers now has a choice of express/instant deliveries in many places. As the
distribution landscape is rapidly transforming, HUL is clearly focused in ensuring that HUL brands are available
wherever shopper wants to shop. Design for Channel has been one of the strategic thrusts and HUL is designing
products and organizing HUL business for organized retail by collaborating with HUL customers and partners.
Shikhar, HUL e-B2B online ordering solution is a real game changer.
• HUL believe that by helping smaller retailers engage with the digital economy through Shikhar, HUL can help
them build more resilient and profitable businesses that also grow HUL sales. HUL has now scaled Shikhar to
cover more than 8 lakhs stores. HUL are also expanding HUL digital presence through D2C platforms – HUL now
has D2C HUL sites for HUL premium brands like Lakmé, Indulekha, simple and a multi-brand platform UShop.
• This allows consumers access to their favorite brands directly from HUL platforms and get it home delivered
giving them a unique shopping experience. All these initiatives has now enabled us to capture more than 20%
of HUL demand digitally and gives us a unique ability to run HUL demand generation and demand fulfilment
activities in a disruptive way.
Building differentiated structure and capabilities
Rapid digitalization in HUL country has transformed the market dynamics across sectors. This has led to fragmentation of
consumer choice, new channel shifts and the creation of service ecosystems.
HUL Reimagine
• HUL journey continues to help accelerate HUL shift towards becoming an “Intelligent Enterprise”. Subsequent to the
digitalization of HUL process, HUL are now focusing on creating connected ecosystem across consumer, customer and
operation, supported by data, technology and analytics at its core. As part of the consumer ecosystem, HUL are focused on
faster-better innovation, leveraging next generation media tools to reach consumers effectively and efficiently, and
building consumer engagement platforms.
• In the customer ecosystem, HUL is building competitive moats across demand capture, demand fulfilment and demand
generation by digitalizing HUL operations and leveraging data-driven analytics. To drive agility and resilience for HUL
business, optimize costs with a focus on sustainable growth, HUL supply chain is undergoing a transformation. HUL
continue to treat data as an enterprise asset and are enabling data-led decision making in all parts of HUL business.
• HUL are integrating data from disparate internal and external data sources and are analyzing them to enable better and
faster data-led decision making across the business. Winning in Many India’s (WiMI) has been a cornerstone of HUL
strategy. Looking at the diverse nature of HUL country HUL has de-averaged India into 15 consumer clusters. This brings us
close to the consumers and allows us to capture consumer trends at a granular level. With the help of these rich granular
insights, HUL are able to deploy customized strategies to drive growth. As consumers increasingly become more discerning
HUL WiMI strategy will continue to keep it future-fit.
Building a purpose-led, future-fit organization and growth culture
• HUL believe that when employees are clear on their purpose in life and how this connects to the work they do, they are more engaged and willing to
go the extra mile. Working with purpose is at the heart of HUL culture. This also helps us attract the best talent, as evidenced by HUL status as number
one employer of choice across industries in the country.
• HUL is transforming how HUL work at HUL by introducing more flexible and agile ways of working. HUL continue on HUL journey to build a diverse and
inclusive organization through HUL progressive policies. HUL are reskilling and up skilling HUL people, and embracing hybrid ways of work to prepare
for the future of work. HUL continue to build organizational capabilities with clear focus on functional learning priorities and embedding digital-first
mindset to make HUL people future-fit.
• Technology absorption The Company continues to derive sustainable benefit from the strong foundation and long tradition of R&D at Unilever, which
differentiates it from others. New products, processes and benefits flow from work done in various Unilever R&D centers across the globe, including in
India. The Unilever R&D labs in Mumbai, Bengaluru and Gurgaon work closely with the business to create exciting innovations that help us win with
HUL consumers. With world-class facilities, and a superior science and technology culture, Unilever attracts the best talent to provide a significant
technology differentiation to its products and processes.
• The R&D programs, undertaken by Unilever globally, are focused on the development of breakthrough and proprietary technologies with innovative
consumer propositions. The global R&D team comprises highly qualified scientists and technologists working in the areas of Home Care, Beauty &
Personal Care, Foods & Refreshment and Water Purification and critical functional capability teams in the areas of Regulatory, Clinical, Digital R&D,
Product & Environment Safety and Open Innovation.
• HUL has an existing Technical Collaboration Agreement (TCA) and a Trademark License Agreement (TMLA) with Unilever since 2013. YHUL Company is
enjoying the benefits of an increasing stream of new products and innovations, backed by technology and know-how from Unilever.
• The pace of innovations and the scope of services has expanded over the years. Unilever’s global resources are providing greater expertise and
superior innovations. This has helped in bringing to the Indian consumers bigger, better and faster innovations.
• HUL continuously imports technology from Unilever under the TCA, which is fully absorbed. HUL also receives continuous support and guidance from
Unilever to drive functional excellence in marketing, supply management, media buying and IT, among others, which help HUL build capabilities,
remain competitive and further step-up its overall business performance. Unilever is committed to ensuring that the support in terms of new
products, innovations, technologies and services is commensurate with the needs of HUL and enables it to win in the marketplace.
Summary and Conclusion
• HUL has strong marketing strategy which resonates with consumers through
its profitable business growth
• It uses new age digital technologies, segmentation and positioning using right
mix of marketing 4P
• It has 5 step growth driver and focusses on corporate social responsibility
and people development as stimulus to business results
• Challenges and negative campaigns such as those for Horlics and Surf could
be managed with brand equity. Surf’s Lalita Ji campaign and Horlics children-
mother positioning has a large mindshare.
https://www.youtube.com/watch?v=ALxiXkHxqCc&t=5s