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Hindustan Unilever Limited (HUL) Case Study 2021 – Industry, SWOT, Financials & Shareholding

by Team Trade Brains | Mar 3, 2021 | Case Study , Stocks | 0 comments

HUL Case Study

HUL Case Study and analysis 2021: Hindustan Unilever Limited (HUL) is India’s biggest fast-moving consumer goods company . In this article, we will look into the fundamentals of HUL, focusing on both qualitative and quantitative aspects. Here, we will perform the SWOT Analysis of HUL, Michael Porter’s 5 Force Analysis, followed by looking into HUL  key financials. We hope you will find the Hindustan Unilever Limited (HUL)  case study helpful.

Disclaimer: This article is only for informational purposes and should not be considered any kind of advisory/advice. Please perform your independent analysis before investing in stocks, or take the help of your investment advisor. The data is collected from Trade Brains Portal .

Table of Contents

About HUL and its Business Model

HUL Case Study - Brands

With a legacy of over 80 years, Hindustan Unilever Limited (HUL) is India’s biggest fast-moving consumer goods company. Actually, the very first product of the company was launched in 1888 named Sunlight Soap. In 1931 Unilever set up its subsidiary in India and in 1956, its subsidiaries consolidated to form Hindustan Leer Limited.

In 2007, the name was renamed Hindustan Unilever Limited. In 2013, the parent company Unilever increased the market stake in HUL to 67% and in 2018, the market cap of HUL passed $50bn.

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 HUL primarily has three divisions:

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  • Beauty and Personal Care
  • Food and Refreshment

Hindustan Unilever has a pan India access and it is found that more than 9 out of 10 households in India use a brand of HUL. Currently, the company has 14 brands in 44 different categories including Skin Cleansing, Tea, Deodrants, HFD, etc. Famous Brands like Surf Excel, Rin, Wheel, Vaseline, Pepsodent, Clinic Plus are included in the portfolio of the company.

On April 1, 2020, HUL also acquired leading brands like Horlicks and Boost. The company has 21,000 employees working under it with 31 factories, more than 1150 suppliers, and the products are available at more than 8million outlets in India.

HUL Case Study – Industry Analysis

FMCG sector is the fourth largest sector in India, which has surged from 840 Billion USD in 2017 to 1.1 Trillion USD in FY20 and is expected to grow at 10% a year. Personal Care and Household dominates with 50% of FMCG sales in India. Rapid urbanisation, increasing disposable incomes and better lifestyles have been the main growth drivers for the FMCG sector.

55% of the sales come from the urban segment, however, for the last few years, it has witnessed faster growth in the rural segment as compared to the urban segment. In rural India, the sector grew at 10.6% in the Q3 FY20, majorly due to better agricultural output.

It is expected that the rural FMCG market will rise to USD 220 billion by the end of 2025, at the same time, the market share of the unorganised market is expected to fall rapidly.

Michael Porter’s 5 Force Analysis of HUL

1. rivalry amongst competitors.

  • FMCG industry is a very competitive one with many brands available, and new products coming in each quarter make innovation very important. FMCG business is highly dependent on advertisement and companies spent a big percentage on it.
  • The switching costs for the customers are very low in this sector as the product differentiation is moderately low, which intensifies the competition.

2. A Threat by Substitutes

  • Substitute in the FMCG sector is highly dependent on the particular product. For example, it is way easier to find Colgate toothpaste at a local shop than a homemade organic dentifrice. On the other hand, the substitute product for biscuits is rusk which is easily available. Since switching costs are very less, the threat of substitutes is relatively on the higher side.

3. Barriers to Entry

  • Barriers to entry in the FMCG sector are far less as compared to the others. FMCG business is majorly dependent on brand identification and this can be developed with unique qualities, logo, advertisement; basically, proper market strategy.
  • The distribution network is very large and branched in the FMCG sector, which further eases out barriers of entry.

4. Bargaining Power of Suppliers

  • In FMCG business, companies have long term business with the suppliers, which helps them to negotiate the price. Moreover, the number of suppliers is ample; hence, decreasing the bargaining power of suppliers. However, companies need to make sure that they are getting the supplies at the cheapest possible prices as the industry is a high-volume, low-margin business.

5. Bargaining Power of Customers

  • Factors like a high number of similar product companies available, very low switching costs and similar products available at similar quality and in almost the same price range increase the bargaining power of customers. The only thing that can make them stay is brand loyalty for a product.

HUL Case Study – SWOT Analysis

Now, moving forward in our HUL case study, we will perform the SWOT analysis.

1. Strengths

  • HUL has a strong brand equity and a large legacy as it is a very old and well-rooted company with a variety of popular brands and products.
  • The company has its presence across the length and breadth of India with over 8 million+ retail stores where its products are available.

2. Weaknesses

  • HUL runs in a very competitive environment and there are highly established and rising companies that are little product-focused and hence, eat up the market share of the company.
  • HUL currently doesn’t have any ayurvedic or natural products in their portfolio, which is a negative aspect of the company as the current population’s trend is shifting to herbal products and many focused companies are making the best use of it.

3. Opportunities

  • With increasing disposable incomes, education and youth population, the FMCG sector in rural and semi-urban areas is expected to grow very rapidly as compared to urban areas. The company can use this very well as it already has a brand image and a wide chain of distributors.
  • The company can use its healthy cash reserve position and brand image legacy to acquire various products to diversify its portfolio.
  • HUL runs in a highly competitive environment, with 100% FDI allowed by the Govt. of India and new multinational companies setting their feet, the company faces a high threat from its competitors.
  • The company is highly dependent on raw material prices. Inflation can shrink the margins for the company as it runs in a sector that is a high-volume, low-margin one.
  • Population’s shift to organic and healthy products can help some unorganized and small companies to increase their market share, which can be a threat to HUL.
Asian Paints Case Study 2021 – Industry, SWOT, Financials & Shareholding

HUL’s Management

There are 9 members in the board of directors committee of the company, out of which 6 are Independent Directors including one female member.

Mr Sanjiv Mehta has been serving as the Chairman and Managing Director of the company since 2018. Chartered Accountant by degree, Sanjiv Mehta is also the President of Unilever South Asia (Pakistan, Bangladesh, Sri Lanka and Nepal). In 2019, he was awarded the “Business Leader of The Year” award by the All India Management Association.

Mr Willem Uijen is the Executive Director, Supply Chain of Hindustan Unilever Limited. He has been with the company since 1999 and was a part of various demographical projects of the company, especially in Latin America. In January 2020, he joined his current position.

Financial Analysis of HUL

  • 44% of the company’s revenue comes from Beauty and Personal Care, followed by Home Care (34%). Foods & Refreshment contributes 19% and only 3% comes from others.
  • In terms of Operating profit, Beauty and Personal care products contribute the maximum (55%), 29% comes from Home Care, 14% and 3% from Foods and others respectively.
  • The company has a 54% market share in the Skin Care Segment, which makes it the market leader. In Dishwashing Detergents, 55% of the market share is dominated by the company. 47% and 37% is the respective market share which company owns in Shampoo and Personal Care Segment.
  • As of Sept’20, the company spent 9.79% on advertisements as a % of total sales, which has shown a good rise from 7.46 of June’20.
  • Net Profit Margin for the company is 14.77% as of FY20, which has surged from 13.59% as that of FY19. Current NPM is the highest of that in the last 5 financial years and the 3 Yrs. Avg. Net Profit Margin is 14.26%. Source: Trade Brains Portal ]

HUL Net Profit Margin

  • In FY20, HUL showed a Revenue Growth of 1.2% from the previous FY. 3-year CAGR is 6.16%, which means that in recent years, the revenue growth has been subdued. A similar trend is visible from Net Profit Growth, 1-year CAGR is 11.46% whereas 3-year CAGR (14.66%) is higher.

hul case study revenue profit and net flow

  • The company has a very healthy and consistent cash flow from Operating Activities. Outflow in cash flow from financing activities surged in FY20 as the company paid a higher dividend than the previous year.

hul case study cashflow statement

HUL Case Study Financial Ratios

1. profitability ratios.

  • EBITA Margin for the company has been increasing for the last 5 financial years except for FY19, in which it witnessed a small dip from 20.7 to 19.91. As of FY20, EBITDA Margin is 21.54%.
  • Hindustan Unilever has the premium RoE of 84.15 (FY20), and a consistent rise in the same has been visible for the last 4 years. The 3 years avg RoE is 79.76%.
  • The company enjoys 3-digit RoCE, which is very well respected by the market and a similar rising trend is visible in RoCE as that of RoE. As of FY20, RoCE is 114.67% and the Avg ROCE for 3 years is 110.16%.

2. Leverage Ratios

  • As of FY20, Quick Ratio and Current Ratio for the company are 1.02 and 1.32 respectively, which indicated its good liquidity position. These levels have been more or less the same for the last 5 financial years, which is a positive sign for the company.
  • HUL is a 100% debt-free company and its Interest Coverage Ratio is 48.69% as of FY20. Although this level is very good currently, it was 261.73 in FY19.

3. Efficiency Ratios

  • Currently, the asset turnover ratio for the company is 2.4, which is slightly lower than the previous year but this figure has been almost constant in the recent financial years.
  • The inventory turnover ratio witnessed a continuous rise from FY16 (12.04%) to FY19(17.53%), which later dipped to 17.18 in FY20 due to virus outbreak disruptions.
  • The number of receivable days has decreased (12.79% in FY19 to 11.83% in FY20) and the number of payable days has increased (90.77% in FY19 to 92.86% in FY20), indicating the company’s increased bargaining power over the buyers and suppliers.

Shareholding Pattern of HUL

  • Promoters own 61.9% of the company as of December quarter 2020. Although it has been the same for the last 3 quarters, a fall was seen from the level of 67.18% in March 2020. The best part is that promoters do not pledge a single share.
  • FIIs hold 14.92% of shares of the company as of December 2020, which has surged from the level of 12.32% in the same period the previous year.
  • DIIs own nearly 10.72% shares of the company, which was around 6.68% a year back. Both FIIs and DIIs have increased their shareholding in the previous years.
  • Public shareholding has witnessed a fall in the recent quarters, from the level of 14.95% in Jun2020 to 12.46% in Dec 2020.

Closing Thoughts

In this article, we tried to perform a quick Hindustan Unilever Limited (HUL) case study. Although there are still many other prospects to look into, however, this guide would have given you a basic idea about HUL.

What do you think about HUL fundamentals from the long-term investment point of view? Do let us know in the comment section below. Take care and happy investing!

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FMCG Giant Hindustan Unilever Limited (HUL) Case Study

Devashish Shrivastava

Devashish Shrivastava , Anik Banerjee

Hindustan Unilever Limited (HUL) is a British-Dutch assembling organization headquartered in Mumbai, India. The items of Hindustan Unilever Ltd incorporate nourishments, drinks, cleaning specialists, individual consideration items, water purifiers, and purchaser merchandise. HUL was set up in 1933 as Lever Brothers and following the merger of its constituent gatherings in 1956, HUL was renamed Hindustan Lever Limited. The organization was then renamed in June 2007 as "Hindustan Unilever Limited".

At the start of 2019, the Hindustan Unilever Limited portfolio had 35 items marked in 20 classifications and utilized 18,000 representatives with offers of Rs. 34,619 crores in 2017-18. In December 2018, HUL reported its procurement of Glaxo Smithkline's India business for $3.8 billion out of an all value merger manage ratio of 1:4.39.

However, the joining of 3800 representatives of GSK stayed questionable as HUL expressed there was no provision for maintenance of workers in the deal. In January 2019, HUL said that it hopes to finish the merger with Glaxo Smith Kline Consumer Healthcare (GSKCH India) this year.

History And Journey Of Hindustan Unilever Brands And Products Of Hindustan Unilever Business Model of HUL Business Growth In India Expected Future Growth

hindustan unilever limited case study

History And Journey Of Hindustan Unilever

Hindustan Unilever Limited (HUL) is India's biggest quick-moving customer merchandise organization. HUL works in seven business sections.

The cleanser segment incorporates cleansers, cleanser bars, cleanser powders, and scourers. Individual items incorporate items in the classifications of oral consideration, healthy skin (barring cleansers), hair care bath powder, and shading beautifiers. Refreshments incorporate tea and espresso.

Nourishments incorporate staples (atta salt and bread) and culinary items (tomato-based items natural product-based items and soups). Frozen yogurts incorporate frozen yogurts and solidified treats. Others incorporate synthetic substances and water business.

HUL's item portfolio incorporates family unit brands—for example, Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair and Lovely, Pond's, Vaseline, Lakme, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, and Bru, Knorr, Kissan, and Kwality Wall's. HUL is a backup of Unilever, one of the world's driving providers of food products , home care, personal care, and refreshment items with deals in more than 190 nations and a yearly turnover of $6.08 billion in 2020.

hindustan unilever limited case study

Hindustan Unilever Limited traces its origins to Unilever, a British-Dutch multinational company, which is the parent of HUL. William Hesketh Lever was a popular social reformer and is regarded as one of the main propagators of several significant employee benefits options like benefits of health, savings, and more. Thus, his ideologies largely seeped into Unilver and resulted in developing its strong sense of corporate responsibility and leadership. This culture was invariably passed on to the Hindustan Unilever Limited (HUL).

The British-Dutch company Unilever, which emerged as a result of the merger of the operations of Dutch Margarine Unie and British soapmaker Lever Brothers, when it first came to India, discovered the rich and largely unexplored potential of the Indian market. Soon after, the establishment of Hindustan Vanaspati Mfg. Co. Ltd. followed in 1931, which was succeeded by the foundation of Lever Brothers India Limited (1933) and United Traders Limited (1935). The Indian subcontinent had only been importing FMCG products, branded under Lever Brothers since then, the first of which were spotted as early as 1888. Following this, brands like Lifebuoy stepped in 1895, along with other famous companies like Pears, Lux, and Vim. Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937.

The 3 Unilever companies - Hindustan Vanaspati Manufacturing Company, Lever Brothers India Limited, and United Traders Limited eventually merged together to form HUL in November 1956. HUL offered 10% of its equity to the Indians and soon swooped into the news, being the first foreign subsidiary to do so.

The organization obtained Lipton in 1972, and Lipton Tea (India) Ltd was consolidated in 1977. Brooke Bond joined the Unilever overlap in 1984 through a global obtaining. Lake's (India) Ltd joined the Unilever overlap through a worldwide securing of Chesebrough Pond's USA in 1986.

The progression of the Indian economy, which began in 1991, denoted an enunciation in the organization's development bend. The expulsion of the administrative structure enabled the organization to investigate every item and open-door section with no imperatives on the creation limit. At the same time, deregulation allowed acquisitions and mergers .

The Tata Oil Mills Company (TOMCO) converged with the organization with effect from April 1, 1993. In 1996, Unilever and Lakme Ltd framed a 50:50 joint endeavor, Lakme Unilever Ltd, to advertise Lakme's market-driven beautifiers and other suitable results. In 1998, Lakme Ltd offered its brands to Unilever and stripped its half stake in the joint venture.

In 1994, the organization and US-based Kimberly Clark Corporation framed a 50:50 joint endeavor—Kimberly-Clark Lever Ltd—which markets Huggies Diapers and Kotex Sanitary Pads. The organization likewise set up a backup in Nepal called Unilever Nepal Limited (UNL). UNL's production line speaks to the biggest assembling interest in the Himalayan kingdom. In the1992, Brooke Bond gained Kothari General Foods with critical interests in instant coffee.

In 1993, HUL acquired Kissan from the UB Group and the Dollops ice-cream business from Cadbury India. Tea Estates and Doom Dooma, two major organizations of Unilever, were converged with Brooke Bond. At that point, in 1994, Brooke Bond India and Lipton India converged to shape Brooke Bond Lipton India Ltd (BBLIL) to empower more noteworthy concentration and guarantee collaboration in the customary beverages business. BBL converged with Unilever with effect from January 1, 1996.

The internal rebuilding finished with the merger of Pond's (India) Limited (PIL) with HUL in 1998. The two organizations had huge covers in personal products, specialty chemicals, and export organizations; other than a typical appropriation framework since 1993 for personal products. The two additionally had a typical administration pool and an innovation base.

In January 2000, the administration chose to grant 74% value in Modern Foods to Unilever. This started the divestment of government value in open division endeavors (PSU) to private area accomplices. The organization's entrance into bread production is a key augmentation of the organization's wheat business. In 2002, the organization procured the administration's residual stake in Modern Foods.

Journey Of Hindustan Unilever

In 2002, the organization made its entry into Ayurvedic well-being with its Ayush item range and Ayush therapy centers. In 2003, the organization procured the Cooked Shrimp and Pasteurized Crabmeat business of the Amalgam Group of Companies, an innovator in marine products trades. Additionally, the organization propelled Hindustan Unilever Network Direct to home business. In 2004, the organization launched the 'Pureit' water purifier.

In 2005, Lever India Exports, Lipton India Exports Ltd, Merry climate Food Products, Toc Disinfectants Ltd, and International Fisheries Ltd were amalgamated within Unilever. In February 2006, Vasishti Detergents Ltd (VDL) converged with Unilever. In September 2006, Modern Foods Industries (India) Ltd & Modern Foods and Nutrition Industries Ltd were included. In October 2006, Unilever stripped its 51% controlling stake in Unilever India Shared Services Ltd, currently known as Capgemini Business Services Pvt. Ltd., to Cap Gemini SA.

In March 2007, Sangam Direct, a non-store home conveyance retail business managed by Unilever India Exports Ltd (UIEL) and a completely possessed auxiliary, was moved to Wadhavan Foods Retail Pvt Ltd (WFRPL) in a droop deal business. Likewise, Unilever completed the demerger of its operational offices in Shamnagar, Jamnagar, and Janmam and shaped three autonomous organizations —Shamnagar Estates Ltd., Jamnagar Properties Ltd, and Hindustan Kwality Walls Foods Ltd. In June 2007, the organization changed its name from Hindustan Lever Ltd to Hindustan Unilever Limited.

In 2008, the organization reported its coordinated efforts with the Indian Dental Association (IDA) related to World Dental Federation (FDI) through the Pepsodent brand to help improve the oral well-being and cleanliness benchmarks in India. In April 2008, the organization demerged and moved certain immovable properties to Brooke Bond Real Estates Pvt Ltd. In January 2010, the organization introduced its new corporate office.

In April 2010, Unilever affirmed the plan of amalgamation of Bon Ltd, an entirely possessed backup of Hindustan Unilever Limited, with it. The selected date for the previously mentioned plan was 1 April 2009 and the plan was made viable from April 28, 2010. Ensuing to the amalgamation, Bon Ltd stopped being an auxiliary of the company.

During 2010-11, Kissan forayed into a new market fragment in three major classifications. It propelled Kissan Fruit and Soya, a delightful mix of organic product juice and soya milk, which appreciated a separated suggestion in this market. The brand likewise went into the Indian (non-sweet) spreads showcase with the dispatch of Kissan Creamy Spread over key towns. In the bakery division, the organization propelled two new items—Chapi and Cream Rolls. The organization stripped 43.31% stake in Hindustan Field Services Pvt Ltd for Smollan Group (the JV accomplice).

Along these lines, Hindustan Field Services Pvt. Ltd. stopped being a backup organization. Lakme Lever Pvt Ltd, a completely claimed auxiliary of HUL, extended the system of Lakme Beauty Salons in that year with the opening of 11 franchises and oversaw salons alongside 18 franchisees' salons.

In December 2011, the organization demerged the FMCG sends-out business, including explicit fares related to assembling units of the organization, into its entirely claimed backup Unilever India Exports Ltd (UIEL). The plan wound up successful on January 1, 2012.

Hindustan Unilever - One Team One Dream

In 2012, the organization went into a concurrence with Unilever to showcase Brylcreem in India. During the year under audit, Unilever and elements of Piramal Realty (Ajay Piramal Group) consented to an arrangement for the task of HUL's leasehold privileges of the land and building named Gulita arranged at Worli Sea Face Mumbai for an exchange estimation of Rs. 452.5 Crore.

On 22 January 2013, the Board of Directors of HUL affirmed a proposition to consent to another arrangement with its parent organization Unilever for the arrangement of innovation exchange imprint permit, trademark registration, and other services on 1 February 2013. This new understanding underlined that the loyalty cost of 1.4% of turnover payable by HUL to Unilever will increment in a staged way to an eminence cost of 3.15% of turnover, no later than the money-related year finishing 31 March 2018.

The expansion in eminence cost in the period from 1 February 2013 to 31 March 2014 is assessed to be 0.5% of turnover and from there on in the scope of 0.3% to 0.7% of turnover in each money related year, paving the way to a complete evaluated sovereignty cost increment of 1.75% of turnover contrasted with existing courses of action no later than the monetary year finishing 31 March 2018.

In 2014, Unilever reported an organization with Internet.org, a Facebook-directed coalition of accomplices to see how web access can be expanded to contact millions of individuals crosswise over India. The organization additionally dispatched Prabhat activity for network improvement in towns around its industrial facilities during the year under survey. Furthermore, the organization also went into association with MTV to embrace its brands during the year under review. In 2015, the organization propelled The Unilever Foundry.

During the year under audit, the organization was perceived as the most inventive advertiser at the Mobile Marketing Association (MMA). The organization additionally resuscitated Ayush with e-dispatch during the year. Besides, it also propelled the 'Swachh Aadat Swachh Bharat' program in India during the year under review. On 8 September 2015, HUL reported that it has further consented to bring forth an arrangement for the deal and the transfer of its bread and pastry shop business under the brand Modern to Nimman Foods Private Limited, an investee organization of the Everstone Group, for an undisclosed amount.

hindustan unilever limited case study

Brands And Products Of Hindustan Unilever

HUL is the market chief in Indian buyer items with products in more than 20 purchaser classes (for example, cleansers, tea, cleansers, and shampoos among others). Sixteen of HUL's brands were included in the ACNielsen Brand Equity rundown of 100 Most Trusted Brands Annual Survey (2014) which was completed by Brand Equity, an enhancement of The Economic Times. There are many brands and products owned by Hindustan Uniliver:

hindustan unilever limited case study

Food Products

  • Annapurna salt and Atta (once known as Kissan Annapurna)
  • Brooke Bond 3 Roses, Taj Mahal, Taaza and Red Label tea
  • Kissan squashes, kinds of ketchup, squeezes and sticks
  • Lipton ice tea
  • Knorr soups and supper creators and soupy noodles
  • Kwality Wall's solidified treat
  • Modern Bread, prepared to eat chapattis and other pastry shop things (presently offered to Everstone Capital)
  • Magnum (ice cream)

Homecare Brands

  • Wheel cleaner
  • Cif Cream Cleaner
  • comfort cleansing agents
  • Domex disinfectant/toilet and bathroom cleaner
  • Rin detergent products
  • sunlight cleanser and shading care
  • Surf Excel cleanser and delicate wash
  • Vim dishwash
  • magic – Water Saver

Personal Care Brands

  • Aviance Beauty Solutions and products
  • Axe deodorant and aftershave lotion and soap and accessories
  • Lever Ayush Therapy ayurvedic health care and personal care products and items
  • International breeze
  • Brylcreem hair cream, hair gel and hair products
  • Clear anti-dandruff hair products
  • Clinic Plus shampoo and oil
  • Close Up toothpaste
  • Dove skin cleansing & hair care range: bar, lotions, creams, and antiperspirant deodorants
  • Denim shaving products
  • Fair and Lovely, skin lightening cream
  • Indulekha ayurvedic hair oil
  • Lakmé beauty products and salons
  • Lifebuoy soaps and handwash range
  • Liril 2000 soap
  • Lux soap, body wash, and deodorant
  • Pears soap, body wash
  • Pepsodent toothpaste
  • Pond's talcs and creams
  • Sunsilk shampoo
  • Sure antiperspirant
  • Vaseline petroleum jelly, skincare lotions
  • Vaseline and relevant products

Water Purifier Products

  • Pureit water purifier

hindustan unilever limited case study

Business Model of HUL

Hindustan Unilever is an FMCG company that leverages its Direct to Consumer (D2C) business model and has made over 50 billion in revenue, as discovered in 2017. The company has crossed INR 50,000 cr ($6.55 bn) in turnover during FY21, as per the reports on April 2022. HUL is the first pure FMCG brand to hit such a milestone.

The business model of Hindustan Unilever is propelled with the idea of making living sustainable feasible for the masses. With sustainable living, HUL wants to bring about:

  • Bettering the future of the children
  • A future full of confidence
  • A future full of health
  • A future that is better for the planet
  • A future that is better for the farming and farmers of India

The beauty and personal care segment of Hindustan Unilever helps the company see the most profit, while the food and refreshments segment is declared as the fastest-growing segment of the company. Home care is another segment of the company among its 3 primary segments.

The Hindustan Unilever company gets its competitive advantage from the global footprint it has and the track record of the company for enhancing value for its consumers around the globe.

Some of the prominent patterns that are noticeable in the business model of HUL are:

Reverse Innovation

Reverse innovation refers to the process of building products for industrial countries and then adapting them to the emerging markets. The technique of reverse innovation is what is truly wielded by HUL, which has been a prominent inspiration for many other big brands. The 'Knorr Stock Pot’ that the brand came up with is an excellent example of leveraging reverse innovation. This technique was mastered by HUL by taking references from the famous ‘Dense Soup treasure,’ which was the first major example of reverse innovation, launched in China in 2007.  

Focussing on the financially weak

In contrast to the other foreign subsidiaries, HUL ideated to focus on the financially weaker sections of the country, which led them to focus on the majority of the Indian people. Citing the discovery of Wheel detergent powder is one of the examples where Hindustan Unilever created products for the majority of the Indian consumers. Wheel had lower oil-to-water ratio, which enabled Indian to wash textiles even in rivers with hands. Wheel was then made available cleverly by the brand in the local corner shops as well as via door-to-door representatives.

Staying keen on the Triple Bottom Line

While most of the companies solely focus on the profit part of the follow the Triple Bottom Line with only a little focus on the other segments, HUL has a new approach where the brand decided aimed for the other segments, thereby caring for people and the planet.  

HUL largely focuses on the people, including its consumers and others. For instance, the company changed the name of one of its popular products "Fair and Lovely" to "Glow and Lovely", following the All Black Lives Matter movement that raged globally. This instantly made HUL a favourite!  

Significant Distribution Strategy

The distribution strategy that Hindustan Unilever follows is exemplary! It focuses on hyperlocal markets, retail stores, wholesalers, hypermarkets convenience stores, ecommerce, and more. This hugely helps in the promotion of the HUL products and moving them fast to the consumers!

Business Growth In India

FMCG giant Hindustan Unilever Limited (HUL) announced a 15.98% development in solidified net benefit at Rs 6,060 crore for the monetary year finished March 31, 2019, when contrasted with Rs 5,225 crore in 2018. The net profit that HUL witnessed in FY21 rose by 18% YoY at Rs 7,954 crore.

Business Growth Of Hindustan Unilever

Remarking on the profit, HUL Chairman and Managing Director Sanjiv Mehta stated, "We have conveyed a solid execution for the quarter regardless of some balance in rustic market development. Our attention to fortifying the center and driving business sector advancement has been reliably conveying great outcomes. We have now developed top line and primary concern for the eighth continuous year and our 2019 outcomes were a demonstration of both our technique and execution."

Growth Of Hindustan Unilever

"Given the large-scale monetary pointers, close term advertise development has directed. Notwithstanding, the medium-term viewpoint remains positive. As an association, we are well-situated to react with speed and nimbleness to address the issues of our shoppers. We stay concentrated on our vital plan of conveying predictable, focused, beneficial, and dependable development," he included.

"Together with the between time profit of Rs 9 for each offer, the all-out profit for the money-related year closure March 31, 2019, adds up to Rs. 22 for every offer," the organization said. "Combined income for 2018-19 remained at Rs 39,860 crore, up from Rs 36,622 crore a year sooner," HUL said in a document to the Bombay Stock Exchange.

Hindustan Unilever's Volume Growth

HUL's business in India developed by 12%, driven by 10% volume development in the household advertise. In the January-March quarter, the organization posted 13.84% development in its independent net benefit at Rs 1,538 crore when contrasted with Rs 1,351 crore in a similar quarter a year ago. The offers of the organization remained at Rs 9,809 crore in Q4FY19 from Rs 9,003 crore in Q4FY18, enrolling a development of 8.95%. The working benefit (EBITDA) for the March quarter was up 13% year-on-year at Rs 2,321 crore and the EBITDA edge was up 90 bps.

Challenges Ahead Of Hindustan Unilever

The organization said that the edge improved because of judicious administration of instability in costs (unrefined and money driven) alongside improved blend and working influence.

HUL reported that its Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 11,324 crore, while the EBITDA margin was reported to be 25% during FY21.

Also read : Unknown Facts About Famous Brands | A Case Study

Expected Future Growth

Hindustan Unilever NSE 0.01 % (HUL) may clock 9-10% development in June quarter benefit despite a slight balance in volumes because of value climbs crosswise over classes. IIFL Institutional Equities expects the FMCG major to report a 6% volume development, a slight control from the 7% volume development recorded in the past quarter.

Growth Prediction Of Hindustan Unilever

"Our channel checks give us a feeling that the organization has started value climbs crosswise over classes, (for example, cleansers, espresso), among others. We along these lines gauge a business development of 9%, like the past quarter level. We expect the slight withdrawal in gross edge to be counterbalanced by influence in promotion spending and different costs. In general, EBITDA and PAT are relied upon to develop at 13% and 12%, individually," IIFL said. IDFC Securities expects HUL to report 10.3% to ascend in benefit at Rs 1,728 crore. It sees deals developing at 8% to Rs 10,250 crore.

"We expect 6% volume development and factor in deals development of 11% in home consideration and 7% in close to home consideration portions. Lower advertisement spends (down 80 bps YoY) and commands over different overheads will help EBITDA edges," it stated while proposing edge at 24.3% against 23.7% the previous year. Edelweiss sees income, Ebitda, and benefit development at 7.3%, 8.6%, and 7.7% YoY.

Hindustan Unilever's Performance In Past Years

"We anticipate that HUL's volume should grow 5% YoY on a high base of 12% YoY development. Q1FY18 was affected by GST dispatch thus the best approach to take a gander at volume development is three years' normal, which will be 5.6%. Delicate quality in the second 50% of Q4FY19 proceeded for the full quarter in Q1FY20. Provincial development is presently at a similar level as urban development. A mixed value climb of 2.5% has been taken. On EBITDA edge front, we expect 20-30 bps YoY development," the business said.

What is Hindustan Unilever origin?

Hindustan Unilever or Hindustan Unilever Limited (HUL) is an Indian subsidiary of Unilever, which sprung from its Dutch-British roots. HUL is headquartered in Mumbai.  

Who is the owner of Hindustan Unilever Limited?

HUL is owned by Unilever, its British multinational parent, headquartered in London.

What is HUL?

HUL is the acronym for Hindustan Unilever Limited.

Who are Hindustan Unilever founders?

Hindustan Unilever founders can be cited as 3 parent companies - Hindustan Vanaspati Mfg. Co. Ltd., Lever Brothers India Limited, and United Traders Limited, which were merged to form HUL.

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HUL (Hindustan Unilever) Marketing Strategy 2024: A Case Study

HUL, also known as Hindustan Unilever, is a global leader in the consumer goods industry with a presence in over 190 countries. As part of its marketing strategy for 2024, HUL has implemented a comprehensive approach that encompasses branding, digital marketing, and market positioning. In this case study, we will delve into the specifics of HUL’s marketing strategy and explore how the company plans to stay ahead in an increasingly competitive market.

Key Takeaways:

  • HUL (Hindustan Unilever) is a leading global consumer goods company.
  • Their marketing strategy for 2024 focuses on branding, digital marketing, and market positioning.
  • HUL aims to maintain its market leadership and drive growth through innovation and sustainability.
  • The company leverages its extensive distribution network and innovative advertising approach to reach its target audience.
  • With a commitment to sustainability, HUL aligns its business practices with responsible and ethical principles.

History of Unilever

Unilever, the parent company of Hindustan Unilever (HUL), has a fascinating history that dates back to 1885. Founded by William Hesketh Lever, Unilever has evolved into a global leader in the consumer goods industry. Its journey to success involved strategic expansions and acquisitions that have solidified its position in the market .

Unilever’s story began when William Hesketh Lever established Lever Brothers, a soap manufacturing company. Lever’s vision of bringing cleanliness and hygiene to households around the world paved the way for Unilever’s legacy. One of the most significant milestones in Unilever’s history was the merger between Margarine Unie and Lever Brothers in 1930, resulting in the formation of Unilever.

This merger marked the beginning of Unilever’s expansion and diversification efforts. With a wide portfolio of brands and products, Unilever continued to grow, acquiring various companies to strengthen its market presence. These strategic acquisitions allowed Unilever to enter new markets, expand its distribution network, and offer a broader range of products to its consumers.

Unilever’s commitment to growth through acquisitions can be seen in its acquisition of Best Foods in 2000, which led to the addition of well-known brands like Hellmann’s and Knorr to their portfolio. Another notable acquisition was Ben & Jerry’s in 2000, further enhancing Unilever’s presence in the ice cream category.

Unilever Acquisitions

Over the years, Unilever has made strategic acquisitions to strengthen its market position and diversify its product offerings. Some notable acquisitions include:

These acquisitions have played a crucial role in Unilever’s growth and expansion, allowing the company to strengthen its brand portfolio and cater to a wider consumer base.

Unilever’s Business Model

Unilever’s business model is built on several key pillars: consumer insights, manufacturing efficiency, logistics optimization, marketing effectiveness , and sustainability. By integrating these elements, Unilever strives to deliver consistent, competitive, and responsible growth.

One of the strengths of Unilever’s business model is its wide distribution network. With operations in over 190 countries, Unilever has established an expansive reach, allowing their products to reach consumers around the globe. This extensive distribution network enables Unilever to efficiently and effectively deliver their products to a wide range of customers, fueling their market presence and ensuring availability to consumers.

Unilever’s commitment to sustainability is another integral part of their business model. The company acknowledges the importance of addressing environmental and social challenges, and as such, they have implemented various sustainability initiatives. By focusing on sustainable practices throughout their operations, Unilever aims to minimize their environmental impact and contribute to the well-being of communities where they operate.

Moreover, Unilever’s business model emphasizes collaboration with governments and NGOs to drive positive change in society and the environment. By partnering with these stakeholders, Unilever can leverage their collective expertise and resources to tackle complex issues, such as climate change and poverty reduction. This collaborative approach strengthens Unilever’s ability to make a meaningful impact and create a sustainable future.

Overall, Unilever’s business model is designed to not only drive growth and profitability but also to prioritize sustainability and societal well-being. Through their distribution network, sustainability initiatives, and collaborative efforts, Unilever aims to be a responsible corporate citizen and contribute to a better world.

Unilever’s Distribution Network

Unilever’s distribution network is a critical component of their business model. With operations in over 190 countries, Unilever has established a vast and efficient distribution network that allows their products to reach consumers worldwide.

This extensive network encompasses various channels, including retail stores, e-commerce platforms, and wholesale distributors. By leveraging multiple distribution channels, Unilever ensures widespread access to their products, catering to the diverse needs and preferences of consumers.

Unilever’s distribution network is supported by robust logistics optimization strategies. The company continuously evaluates and streamlines their supply chain processes to enhance efficiency and reduce costs. By optimizing inventory management, transportation, and warehousing, Unilever can deliver their products in a timely manner, minimizing delays and ensuring reliable availability to customers.

Furthermore, Unilever’s distribution network plays a vital role in supporting their sustainability initiatives. The company is committed to reducing their environmental impact throughout the value chain, and this includes implementing sustainable logistics practices. By optimizing transportation routes, reducing emissions, and minimizing packaging waste, Unilever strives to ensure that their distribution operations align with their sustainability goals.

In summary, Unilever’s distribution network is a key enabler of their business model, enabling them to reach consumers globally while maintaining a focus on sustainability. Through efficient logistics optimization and a commitment to reducing environmental impact, Unilever’s distribution network supports their overall mission of delivering consistent, competitive, and responsible growth.

Unilever Products

Unilever offers a diverse range of products across various categories, catering to the needs of consumers in different aspects of their daily lives. With a comprehensive product portfolio, Unilever has established itself as a prominent player in the global consumer goods market.

Unilever provides a wide array of food products that blend quality, taste, and nutrition. From savory sauces and condiments to ice creams and culinary ingredients, Unilever’s food brands offer a delightful culinary experience. Lipton, one of the leading tea brands worldwide, perfectly exemplifies Unilever’s commitment to delivering exceptional taste and quality in the food segment.

Unilever’s home care products offer effective solutions for maintaining clean and hygienic households. Brands like Surf Excel, Vim, and Comfort provide laundry detergents, dishwashing liquids, and fabric conditioners, ensuring cleanliness and convenience in every home. Unilever’s home care products are designed to make daily chores easier and more efficient.

Personal Care

Unilever’s personal care brands cater to individuals’ grooming and personal hygiene needs. With renowned brands like Dove, Lifebuoy, Axe, and Lux, Unilever plays a significant role in the personal care industry. These brands offer a wide range of products, including soaps, deodorants, skincare items, and hair care solutions, ensuring that consumers can confidently maintain their personal well-being.

Refreshments

Unilever’s refreshments category includes beverages and frozen treats that provide refreshment and enjoyment. Brands like Cornetto and Wall’s serve delicious ice creams and frozen desserts that are loved by people of all ages. Lipton, a renowned tea brand, also falls under Unilever’s refreshments category, offering a refreshing beverage for tea enthusiasts.

Unilever Sustainable Living Brands

In addition to their wide product range, Unilever is committed to sustainability and responsible business practices. Unilever’s sustainable living brands focus on delivering both social and environmental benefits. These brands, such as Axe and Lifebuoy, align with Unilever’s commitment to sustainability and contribute to a more sustainable future.

Unilever Branding Strategy

Unilever adopts a highly strategic approach to branding, ensuring that each brand within its portfolio maintains its unique identity while aligning with the overarching Unilever message and logo. This cohesive branding strategy allows Unilever to establish a strong presence in the market while providing consumers with a clear association of quality and trust.

One of the key strengths of Unilever’s branding approach is its strict adherence to brand guidelines. The company maintains consistent messaging across all communication channels, ensuring that the brand’s values and promises are effectively conveyed to its target audience. By upholding these guidelines, Unilever reinforces its brand image and creates a cohesive brand experience for consumers.

Unilever’s logo and messaging play crucial roles in its branding strategy. The iconic Unilever logo is instantly recognizable and acts as a visual representation of the company’s commitment to excellence and innovation. Each brand under the Unilever umbrella leverages this logo while incorporating its distinct visual elements that resonate with its specific target market.

Unilever’s messaging is carefully crafted to resonate with the values and aspirations of its target consumers. By tailoring brand messaging to specific audiences, Unilever ensures that its products connect with consumers on an emotional level, building long-lasting brand loyalty.

The use of consistent branding across all touchpoints helps consumers easily identify and differentiate Unilever’s products from its competitors. Whether it’s through packaging, advertising campaigns, or digital marketing, Unilever’s branding strategy creates a cohesive brand experience, reinforcing its position as a trusted and reputable consumer goods company.

Unilever Branding Approachand Guidelines

Unilever’s branding approach is underpinned by a set of clear and comprehensive brand guidelines that ensure consistency and alignment across all brands within its portfolio. These guidelines outline the specific visual elements, tone of voice, and messaging that each brand should adhere to when representing the Unilever family.

By providing brands with a set of branding guidelines, Unilever maintains control over its brand identity while allowing flexibility for individual brands to express their unique personalities. The guidelines address various aspects of branding, including logo usage, color palettes, typography, and visual assets.

This standardized approach to branding helps Unilever create a cohesive visual identity across its brand portfolio, making it easier for consumers to recognize and connect with its products. It also ensures that each brand’s positioning and messaging align with Unilever’s overall brand values, strengthening the company’s market position as a leader in the consumer goods industry.

In conclusion, Unilever’s branding strategy is a key driver of its success. The company’s cohesive approach, strict adherence to brand guidelines, and consistent messaging across all communication channels allow Unilever to effectively differentiate its brands in the market and build strong relationships with consumers. By maintaining a clear and recognizable brand identity, Unilever reinforces its position as a trusted and influential player in the consumer goods industry.

Unilever’s Advertising Approach

Unilever recognizes the importance of effective advertising in reaching its target audience and driving brand awareness. The company adopts a comprehensive advertising strategy that combines both traditional and digital mediums to maximize its reach and impact.

In response to evolving consumer behavior and preferences, Unilever has shifted its focus from traditional media platforms to modern ones like social media. By leveraging digital marketing channels , Unilever can engage with consumers in more personalized and interactive ways, enhancing their brand experience.

Unilever invests a significant portion of its budget in advertising and promotion to create impactful campaigns that resonate with consumers. This strategic investment allows them to craft compelling stories, showcase product benefits, and communicate their brand values effectively.

To illustrate the effectiveness of Unilever’s advertising approach, let’s take a look at some of the advertising mediums they employ:

1. Television Commercials

Unilever continues to utilize television commercials, understanding that it remains a powerful medium to reach a wide audience. By creating engaging and memorable commercials, Unilever captures viewers’ attention and builds brand recognition.

2. Print Advertising

In addition to television commercials, Unilever utilizes print advertising in magazines, newspapers, and other publications. This tactic allows them to target specific demographics and niche markets effectively.

3. Social Media Marketing

Unilever embraces the power of social media platforms such as Facebook, Instagram, Twitter, and YouTube. Through compelling content, influencer collaborations, and interactive campaigns, Unilever engages with consumers on a more personal level, encouraging brand loyalty and advocacy.

4. Content Marketing

Content marketing plays a crucial role in Unilever’s advertising strategy. By creating relevant and valuable content, such as articles, blogs, and videos, Unilever positions itself as an authority in its industry, while subtly highlighting its products and values.

5. Influencer Marketing

Unilever collaborates with influencers and online personalities to amplify its brand messages and connect with target audiences across various platforms. By leveraging the reach and influence of these individuals, Unilever can create authentic and relatable content that resonates with consumers.

6. Mobile Advertising

Recognizing the increasing prevalence of mobile devices, Unilever incorporates mobile advertising into its marketing efforts. Through mobile apps, mobile-optimized websites, and targeted ads, Unilever reaches consumers on their preferred devices, ensuring maximum engagement and impact.

Unilever’s advertising approach combines the strengths of traditional and digital mediums, enabling them to effectively communicate their brand messages and create a lasting impression on consumers. By staying attuned to evolving consumer behavior and preferences, Unilever remains at the forefront of advertising innovation.

Unilever’s Marketing Mix

Unilever’s marketing mix incorporates various elements, including product strategy, pricing, distribution, and promotion, to effectively meet consumer needs and preferences.

Product Strategy

Unilever offers a wide range of products to cater to diverse consumer requirements. From personal care and home care to food and refreshment, their extensive portfolio ensures that consumers have access to quality products from trusted brands like Dove, Lipton, Lux, and Knorr. Each brand under Unilever’s umbrella is strategically positioned to target specific market segments and fulfill unique customer demands.

Unilever adopts competitive pricing strategies to provide customers with both affordability and value. By carefully analyzing market dynamics and understanding consumer price sensitivity, Unilever ensures that its products are accessible to a wide range of consumers. This pricing approach allows Unilever to maintain its market position while delivering products that meet the expectations of its target audience.

Distribution

Unilever boasts an extensive distribution network that spans across millions of retail outlets globally. This robust distribution system ensures that Unilever’s products are readily available to customers in various markets. By leveraging partnerships with distributors, wholesalers, and retailers, Unilever achieves broad market coverage, making its products easily accessible to consumers wherever they are.

Unilever employs a combination of traditional and digital channels to promote its brands and engage consumers effectively. Through well-crafted advertising campaigns, Unilever maximizes brand visibility and creates customer awareness. The company utilizes various promotional tactics, such as television commercials, print advertisements, social media campaigns, and influencer marketing , to reach its target audience and build strong brand connections.

Unilever’s Sustainability Initiatives

Unilever, as part of its commitment to sustainability and corporate social responsibility, has implemented a comprehensive range of initiatives. These initiatives align with the company’s Sustainable Living Plan and are integrated into its core business strategies and practices.

One of the key focus areas of Unilever’s sustainability initiatives is reducing environmental impact. The company has set ambitious goals to minimize its carbon emissions, water usage, and waste generation throughout its value chain. By adopting innovative technologies and sustainable practices, Unilever strives to mitigate climate change and conserve natural resources.

Furthermore, Unilever places an emphasis on improving livelihoods and promoting social well-being. The company believes in creating positive social impact by empowering communities, especially in regions where it operates. Through collaborations with local stakeholders, Unilever contributes to economic development, enhances livelihoods, and improves access to education and healthcare.

Unilever’s commitment to sustainability also encompasses sustainable sourcing of ingredients and materials. The company actively works towards ensuring that its supply chain adheres to ethical standards and promotes responsible agricultural practices. By sourcing sustainably, Unilever aims to protect biodiversity, support farmers, and promote fair trade.

Unilever’s Sustainable Living Brands

To further strengthen its sustainability initiatives, Unilever has introduced a portfolio of sustainable living brands. These brands not only meet consumers’ needs but also prioritize sustainable practices and societal benefits.

Unilever’s sustainable living brands include well-known products such as Dove, Lifebuoy, and Ben & Jerry’s. These brands are committed to reducing their environmental impact, improving social conditions, and promoting responsible consumption. By choosing products from Unilever’s sustainable living brands, consumers actively contribute to creating a more sustainable future.

In conclusion, Unilever’s sustainability initiatives demonstrate its dedication to corporate social responsibility and environmental stewardship. Through its Sustainable Living Plan and sustainable living brands, Unilever strives to make a positive impact on society and the planet. By integrating sustainability into its business strategies, Unilever sets an example for other companies and paves the way for a more sustainable future.

Unilever’s Market Positioning

Unilever, a global leader in the consumer goods industry, boasts a strong market position with a significant global market share. This market dominance is a testament to Unilever’s success in driving consumer engagement and meeting their diverse needs. However, it’s important to note that the company faces fierce competition from other major players in the industry, such as Procter & Gamble and L’Oreal.

To maintain its competitive edge, Unilever closely monitors its financial performance, including sales growth and profitability. This diligent monitoring allows the company to assess its market positioning and constantly refine its strategies to stay ahead of the game. By analyzing financial data and market trends , Unilever can make informed decisions to capitalize on opportunities and address challenges effectively.

Unilever’s Market Competition

In a highly competitive market, Unilever continuously strives to differentiate itself from its rivals. Through innovative product development, strategic branding, and effective marketing campaigns , the company aims to create a unique value proposition that sets it apart. Unilever’s commitment to sustainability and corporate social responsibility initiatives also contributes to its competitive advantage, as consumers increasingly prioritize ethical and environmentally conscious brands.

While competition may be fierce, Unilever’s established market presence, extensive distribution network, and strong brand equity provide a solid foundation for continued success. The company’s ability to adapt to changing consumer preferences and emerging market trends enables it to effectively navigate the competitive landscape and maintain its market share.

Unilever’s financial performance, coupled with its market positioning, reflects its ability to drive growth and provide long-term value to its stakeholders. By consistently delivering strong financial results, Unilever reinforces its position as a leading player in the consumer goods industry.

Unilever’s consistent financial performance is a testament to its ability to generate steady revenue and maintain profitability, even in challenging market conditions. These figures further emphasize the company’s strong market positioning and its commitment to delivering value to its shareholders.

In conclusion, HUL’s marketing strategy for 2024 builds upon the rich history of Unilever and its commitment to sustainability. With a strong brand portfolio and innovative advertising approach, HUL aims to maintain market leadership and drive growth in the coming years. The company’s emphasis on sustainability and responsible business practices positions it well for future opportunities and aligns with evolving consumer preferences.

HUL’s marketing strategy is a case study in successfully leveraging its extensive distribution network and business model. By capitalizing on Unilever’s heritage and employing a forward-thinking approach, HUL has achieved remarkable success and garnered a significant market share. Looking ahead, the company is poised to seize future growth opportunities by staying true to its values and incorporating sustainability into every aspect of its operations.

As competition intensifies in the consumer goods industry, HUL’s marketing strategy case study serves as a testament to the importance of strategic brand management, digital marketing, and enduring commitment to sustainability. By continually adapting and innovating, HUL can navigate the dynamic market landscape, capitalize on shifting consumer trends, and position itself as a leader in the industry for years to come.

What is HUL’s marketing strategy for 2024?

What is the history of unilever, what is unilever’s business model, what products does unilever offer, what is unilever’s branding strategy, what is unilever’s advertising approach, what is unilever’s marketing mix, what are unilever’s sustainability initiatives, what is unilever’s market positioning, what is the conclusion of hul’s marketing strategy, related posts.

Marketing Vs Economics

Editorial Team

Hugo boss marketing strategy 2024: a case study, indiahikes marketing strategy 2024: a case study.

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Hindustan Unilever Limited Change location

Case studies

></center></p><h2>Hindustan Unilever Limited (HUL) Case Study: Key Acquisitions, Business Model, Financials, and SWOT Analysis</h2><p>Hindustan Unilever is a household name; almost every product in your bathroom was made by HUL. Today, we’ll explore its business model to understand its operations.</p><p>Table of Contents</p><p>Hindustan Unilever was founded in the latter part of the 1980s. The Lever brothers, established by William Hesketh Lever, first entered the Indian market in 1888 with a product known as sunlight soap. However, the soap was marked with the phrase “Made in England by Lever Brothers”.</p><p>Hindustan Vanaspati Manufacturing Company, Unilever’s first Indian affiliate, was founded in 1931. Lever Brothers India Limited followed in 1933, and United Traders Limited followed in 1935. In 1956, these companies amalgamated to establish Hindustan Unilever Limited.</p><p>The company’s headquarters is located in Mumbai. Rohit Jawa took over as CEO of Hindustan Unilever Limited in June 2023, replacing Sanjeev Mehta.</p><p>After Hindustan Unilever Limited was founded, its primary focus was on acquiring Indian brands that were already well-established.</p><h2>Key Acquisitions</h2><p>1984 – Brooke Bond, a tea brand.</p><p>1972 – Lipton, a national tea product manufacturer.</p><p>2015-16 – Indulekha, a premium hair oil brand.</p><p>2019-20 – GSK, a healthcare product manufacturer.</p><p>2019-20 – Vwash, a female intimate hygiene product manufacturer</p><h2>Awards and Recognition</h2><p>2023 – Winner of the KPMG ESG Excellence award across India’s consumer market sector.</p><p>2022- Outstanding Company of the Year by CNBC –TV18</p><p>2021 – Best Governed Company Award</p><p>2021- Sustainable Factory of the Year award.</p><p>2020 – Top performer in the FMCG Category</p><p><center><img style=

Market Capitalization

As of 7 th Feb 2024, the total market cap of Hindustan Unilever is around 68.69 billion dollars.

At the beginning of 2007, the market cap of HUL was just 7.28 billion dollars. 

Whether a food and beverage product or a healthcare item, Hindustan Unilever is used by nine out of ten Indian households!

The products of Hindustan Unilever are as follows

1.  Home care products – Laundry detergents, fabric conditioners, dishwashing liquids, and toilet cleaners. (Surf Excel, Rin, Wheel)

2.  Personal care products – Soaps, shampoos, skin care products, hair care products, deodorants, oral care products. (Lux, Sunsilk, fair & lovely, Tresemme, axe and closeup, etc.

3.  Beverages – Tea. (Lipton, brooke bond)

4.  Foods – Packaged foods.

5.  Water Purifier – Pureit water purifier.

6.  Healthcare products – Health drinks. (Boost, Horlicks)

7.  Baby care products – Baby soaps, shampoos, and body lotions. (Dove, Johnson’s Baby)

8.  Cosmetic – Cosmetic and beauty products. (Lakme) 

Business Model and Marketing Strategy

The company’s wide range of products enables it to hold the top spot in the market for industrial consumer goods. They have well-known brands in several areas, and their revenue is greatly influenced by consumer recognition of their brands.

Its primary focus is innovation; a sizable amount of its revenue is allocated to creating new items and enhancing its existing line of products.

HUL has an extensive distribution network that reaches both rural and urban locations. Additionally, they invest heavily in all forms of promotion, including print, digital, and sponsorship.

They typically focus on comprehending customer demands and needs because this enables them to develop product lines that cater to consumer preferences

Branding Strategy

What’s in the name? Though everyone has heard this saying at some point in their lives, it is essential to remember that reputation and brand are everything. The company employs various graphics and logos for its many products, but its distinctive logo is printed on each one, making it easy for the general public to recognize them.

Let’s take a close look at the company’s finances to better understand its success.

Based on the aforementioned financial data, it is clear that the company’s revenue as well as profit has been increasing in the last 3 years.

Let’s now examine the company’s balance sheet year over year to examine its financial situation.

The company’s current assets have increased while the non-current assets have shown a small increase as compared to current assets.

If we compare that with the data from 2022, however, non-current liabilities have fallen and current liabilities have increased.

Shareholding Pattern

As of December 2023, the company’s promoters own over 61.9% of the company’s shares, while Domestic Institutional Investors hold about 12.3%, Foreign Institutional Investors (FIIs) account for roughly 13.64%, and the public owns 12.08% of the company’s shares.

SWOT analysis

hindustan unilever limited case study

1.  The company’s primary strength is its widespread presence in India, with more than 8 million locations where customers can purchase its product. Its supply chain is excellent, well-managed, and efficient.

2.  HUL has a long history , which they can preserve because of the money they currently spend on product development and research.

3.  The company’s financial outcomes demonstrate the impact of its excellent performance.

1.  A company’s market share might be reduced by any business that focuses on a certain product.

2.  Since more and more consumers are turning to herbal items, the corporation may suffer from the lack of any Ayurvedic or natural products in its product line.

3.  Due to its extensive product portfolio, HUL may encounter difficulties in effectively managing and allocating resources to it.

Opportunities

1.  The country’s population is likely to have more disposable income in the next few years, which will cause the FMCG sector to grow significantly .

2.  The business can quickly buy out companies that manufacture goods outside of its current product line, which will aid in product diversification .

3.  They can expand their customer base and increase revenue by utilizing e-commerce platforms.

1.  The business operates in a highly competitive market , and with the advent of globalization, numerous international brands have established themselves in the country.

2.  Their margins may be impacted by regulatory changes made by the Indian government on food packaging ingredients, labeling, etc.

3.  A downturn in the nation’s economy may affect consumer buying habits, affecting a company’s profitability.

The organization has achieved global recognition through its strategic planning and marketing approach. The economy’s overall performance determines HUL’s success, as does the population’s disposable income, which increases company profits.

We have tried to clarify every statistic and data about HUL in this case study, covering everything from their financials, history, and shareholding patterns.

However, always consider your risk tolerance and time horizon before making any investing decisions.

Frequently Asked Questions (FAQs)

Q1. Where is the headquarters of Hindustan Unilever located?

Ans. The headquarters of Hindustan Unilever is located in Mumbai, Maharashtra, India.

Q2. What was Hindustan Unilever’s former name?

Ans. Hindustan Vanaspati Manufacturing Company was the former name of Hindustan Unilever Ltd.

Q3. How many factories of HUL are there in India?

Ans. HUL currently has 29 factories nationwide.

Q4. How many businesses are part of Hindustan Unilever?

Ans. There are more than 50 brands connected with Hindustan Unilever.

Q5. What is HUL’s market capitalization ranking in the FMCG sector?

Ans. Hindustan Unilever ranked at the top among FMCG companies, having a market capitalization of around 6.05 Lakh Crore INR as of 7 Feb 2024.

Disclaimer: The securities, funds, and strategies mentioned in this blog are purely for informational purposes and are not recommendations.

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Hindustan Unilever Limited (A): Growing with India

By: Pranav Garg, J Ramachandran

This is a three-part case on India's largest consumer goods company, Hindustan Unilever Limited (HUL), a subsidiary of Unilever, the Anglo-Dutch multinational company. The case traces HUL's journey…

  • Length: 21 page(s)
  • Publication Date: Feb 1, 2019
  • Discipline: International Business
  • Product #: IMB739-PDF-ENG

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This is a three-part case on India's largest consumer goods company, Hindustan Unilever Limited (HUL), a subsidiary of Unilever, the Anglo-Dutch multinational company. The case traces HUL's journey from inception till the end of 2018 with an emphasis on the last two decades. The case also documents developments at Unilever during the last two decades. Students analyze HUL's strategy and performance in the context of the changing competitive landscape in India as well as the strategic imperatives of Unilever. The case also helps them examine the impact of the evolving parent-subsidiary relationship on HUL's strategic choices.

Learning Objectives

Assess the strategic and organizational challenges faced by (emerging market) subsidiaries of MNCs.

Examine how a parent company's strategy and evolving relationship with a subsidiary impact the latter's strategy and performance.

Feb 1, 2019

Discipline:

International Business

Geographies:

Indian Institute of Management-Bangalore

IMB739-PDF-ENG

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hindustan unilever limited case study

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Reimagining Hindustan Unilever (A)

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A Case Study on Hindustan Unilever Limited (HUL)

Hindustan Unilever Limited (HUL)

Article Overview

Introduction

Hindustan Unilever Limited (HUL) is one of India’s wide-ranging consumer goods companies, spreading with two out of three people of Indian with above 20 wonderful categories in personal care products, home as well as meals & beverages. They provide the Company with combined volumes of an estimated four million tones and income of more than Rs. 13,000 crores. The HUL is likewise the U.S.A.’s Major exporting country; through the participation of the Indian authorities, it is recognized as a very famous gold trading center. The Anglo-Dutch company’s junior leverage holds a 52% majority stake in Hindustan Unilever Co. Ltd. In 1888, when the box was picked up during the day, the Lever Brothers started their royal business in India, cleaning soap bars enchase with the phrases like “ Made in England with the aid of Lever Brothers ” had been transferred to the Port of Kolkata and is the beginning of a generation of fast-paced product advertising and marketing of FMCG in HUL which When the Leverage Brothers India was suspended in 1933 and established in 1956, its shape changed to Hindustan Lever restrained with a combination of Lever Brothers, United buyers Ltd and Hindustan Vanaspati Mfg. Co. Ltd. The company is headquartered in Mumbai, India, powers more than 15,000 workers, and indirectly employs more than 52,000 employees. In the months of June 2007, the company changed its name to Hindustan Unilever Co. Ltd. The main motive of carrying out the case research changed into to seriously examine various characteristics of operating of these companies in popular and methods followed for accomplishing strategic pliability . These studies are carried out in stages based on evolution to Pursue strategic agility through the dynamic talents of excellent manufacturing companies. In addition, it examines popular popularity, general performance indicators, and economic indicators, as well as dynamic skill systems. an in-depth evaluation of the research has been completed and their consequences have portrayed the industrial framework concerning the research objective. 

Business Strategy of HUL

HUL’s nutrients strategy specializes in better products, better diets, better lives, and better products. Here Good products have a long history in HUL. They have got a protracted background in contributing definitely to humans’ diets. Their brands which include Knorr and Lipton have supplied healthful and terrific-tasting merchandise for over 100 years. They have got set ambitious vitamins goals which might be embedded into the enterprise and R&D approach. 

Related Article: Deepinder Goyal: Delving into the Business Strategies of Indian Food Delivery King

Nutrition Strategy of HUL

Better merchandise :.

They usually enhance the nutritional nice of our merchandise even as now they can not compromise on taste. The Lipton tea and Brooke Bond Purple Label are delicious, healthy drinks that refresh and moisturize. kids’ fit to be eaten Frozen or Ice Dessert products have strict vitamins standards. They also are gradually reducing the sodium content material of  Kissan ketchup/sauces and Knorr Soups portfolio to get the sodium benchmarks in line with Unilever’s maximum nutrition standards. 

Better Nutrition :

Through their advertising, they inspire more nutritious cuisine. They sell wholesome recipes on the product % and online. They have constantly supported and keep lending our support to mothers in making scrumptious yet wholesome food for his or her youngsters. 

Better Lives :

Their campaigns inspire human beings to undertake more healthy diets and existence, for instance, the Lipton green Tea ‘domestic to domestic, The facts of fats’ marketing campaign . 

Company facilities of HUL

Hindustan Unilever owns 45 foremost units and has over 50 1/3 birthday celebration gadgets in India with quite a number 65 brands crossing 20 awesome classes inclusive of food and healthcare , skincare, soaps, shampoos, detergents and pores, kinds of toothpaste, tea, cosmetics, coffee , water purifiers, and deodorants,  etc. Its principal portfolio consists of main household manufacturers including Lux, Surf Excel, Lifebuoy, Rin, fair & cute, Wheel,  Pond’s, Lakmé, Vaseline, Dove, Sunsilk, hospital Plus, Pepsodent, Closeup, Brooke Bond, Bru, Kissan, Kwality Walls, Knorr, Pureit and awl. The organization has over 16,000 personnel and has an annual turnover of around Rs.21.736 crore (FY 2011-2012). HUL is a subsidiary of Unilever, one of the global’s leading providers of rapid-moving consumer items with sturdy nearby as the company is rooted in more than 100 countries around the world, with annual sales in 2011 of approximately 46.5 billion euros. Unilever owns approximately 52% of HUL. 

Financial Growth of HUL

It is observed that 44% of the organization’s sales come from beauty and personal care , accompanied by using domestic Care (34%). foods & Refreshment contributes 19% and handiest three% comes from others. In terms of working income, beauty and personal care products make a contribution the most (55%), 29% get home care, and 14% and 3% from food and other things. In the skincare phase, employers occupy 54% of the market, making it the market leader. In Dishwashing Detergents, 55% of the marketplace proportion is dominated by using the agency. 47% and 37% is the respective marketplace proportion which agency owns in Shampoo and private Care phase. As of September 20, the company has issued 9.79% of the total income which has shown an increased spike in total sales as of 20th June. Internet profit Margin for the business enterprise is 14.77% in FY20, up from 13.59% in FY2019 contemporary NPM is the best of that inside the remaining 5 financial years and the 3 Yrs. Avg. internet earnings Margin is 14.26%. HUL net earnings Margin In FY20, HUL confirmed a sales increase of 1.2% from the preceding FY. 3-year CAGR is 6.16%, which means that sales growth this year is moderate. A comparable fashion is visible from the internet earnings boom, 1-12 months CAGR is eleven.46% whereas 3-yr CAGR (14.66%) is higher. HUL as a fall, look at sales profit and bottom line. The employer has completely healthy and regular coins that go with the flow from working sports. Outflow in coins waft from financing sports surged in FY20 as the agency paid a better dividend than the preceding 12 months.

The SWOT Analysis of HUL

HUL has a strong logo equity and a huge legacy as it’s miles a very antique and properly-rooted organization with a selection of famous brands and products. The organization has its presence across the duration and breadth of India with over 8 million+ retail stores in which its merchandise is to be had.

HUL runs in a completely competitive environment and there are noticeably hooked up and rising agencies that might be little product-centered and consequently, consume up the market proportion of the organization. HUL presently doesn’t have any ayurvedic or herbal merchandise in their portfolio, that’s a bad element of the business enterprise because the modern populace’s fashion is transferring to natural merchandise and lots of targeted companies are making fine use of it.

Opportunities

With increasing disposable incomes, education, and kids population, the FMCG quarter in rural and semi-urban areas is predicted to develop very rapidly compared to city regions. The agency can use this very well as it already has a brand image and an extensive chain of vendors. The organization can use its healthful cash reserve position and emblem picture legacy to acquire various merchandise to diversify its portfolio.

HUL runs in a rather aggressive surrounding, with 100% FDI allowed via the government of India and new multinational corporations placing their toes, the organization faces an excessive danger from its competitors. The agency is exceptionally dependent on uncooked cloth charges. Inflation can cut back the margins for the business enterprise because it runs in a zone that may be an excessive-quantity, low-margin one. Populace’s shift to natural and healthful products can help a few unorganized and small agencies to grow their marketplace share, which may be a risk to HUL.

Unilever has pursued this advertising and marketing approach since the consumers in developing enterprise sectors are profoundly targeted around value. it could give close-by contenders the brink, besides if an organization can find out a technique to tug in clients with deal costs just as better items. Unilever accepts the reality that productivity improvement should likewise be chargeable for improvement. Unilever’s effective picture advancement program is upheld with a huge degree of showcasing and publicizing physical games which includes a maximum of the media structures. As there are various open doors in the unfamiliar commercial enterprise sectors, yet the inclination of danger is similar to circumstances. The brilliant studies and development (R&D) wing, improved and separate product offerings, and marketplace research are terrific large additives that reason an organization to make the maximum of its latent capacity and extremely good piece of the general enterprise inside the unusual market. To keep up a more fruitful brand an incentive there should be first-rate coordination and incorporation among the emblem chiefs inside the showcasing department.

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Hindustan Unilever Limited: Hindustan Unilever Limited

Campaign Summary

Hindustan Unilever witnessed large scale disruption in supply and the movement of goods from factory to retail shelves in the immediate aftermath of the COVID-19 pandemic and the subsequent nationwide lockdown in India. Panic buying by consumers created unruly scenes at retail outlets with unprecedented hoarding of stock, leading to large-scale shortages of goods. With most migrant laborers choosing to return to their villages, there was a shortage of manpower in the transport sector and a large-scale disruption in the movement of goods. E-commerce platforms too ran out of stocks, managing to supply only a limited number of goods.

With only 20 percent of retail outlets operational, retail businesses were witnessing daily losses in Mumbai. The mass-scale disruption of supply chains led to Hindustan Unilever (HUL) downgrading its business outlook in the months of the lockdown. The HUL sales and customer development teams were looking for a solution to reach stranded consumers locked in the confines of their homes with no access to essential goods.

Essentials on Wheels (EOW), a contactless Direct2Home distribution channel, was devised for Hindustan Unilever to help consumers access HUL Products despite the restrictions. HUL converted a challenge into an opportunity through a home essentials delivery service. This service offered consumers locked in the confines of their homes an opportunity to order from the entire HUL product portfolio through the convenience of a mobile based application, with orders being delivered directly to the doorstep through a mobile delivery service.

Objective and Context:

Essentials on Wheel (EOW) addressed the fear of infection that had gripped people's minds, with most people hesitant to even visit their local grocers for daily supplies. Disruption of supply lines due to the lockdown created shortages in essential goods at retail and even on e-commerce platforms.

Target Audience:

Hindustan Unilever witnessed a large scale disruption in supply and the movement of goods from factory to retail shelves in the immediate aftermath of the pandemic and the subsequent lockdown. Panic buying by consumers created unruly scenes at retail outlets with unprecedented hoarding of stock, leading to large-scale shortages of goods.

With most migrant laborers choosing to return to their villages, there was a shortage of manpower in the transport sector and a large-scale disruption in the movement of goods. E-commerce platforms too ran out of stocks, managing to supply only a limited number of goods. The mass-scale disruption led to Hindustan Unilever downgrading its business outlook in the months of the lockdown. A solution was needed.

HUL converted a challenge into an opportunity through a service that offered consumers locked in the confines of their homes an opportunity to order from the entire HUL product portfolio through the convenience of a mobile-based application, with orders being delivered directly to the doorstep by a mobile delivery service.

Creative Strategy:

The campaign was a Direct2Home model in which consumers could place orders for home essentials directly with HUL through a simple mobile application and get their goods delivered directly to their doorstep. The campaign largely focused on offering a convenient and safe way for consumers to buy the entire range of HUL Products from the safety of their homes.

Overall Campaign Execution:

The project was implemented in multiple suburbs of Mumbai though two main steps :

  • Demand Generation: HUL connected with multiple residential areas and generated preorders through an exclusive EOW app.
  • Outbound Calls: A call center enabled service to residential areas.

Mobile Execution:

The EOW App was synced with the Unilever supply-chain system that directed orders to designated distributors to fulfill. A real-time stock management system synced with product availability and updated the product gallery. Order fulfillment was managed by a trained mobile delivery team that managed stock pick-up from the distributor and delivery to residents daily. All COVID-19 sanitation protocols were adhered to, ensuring contactless deliveries.

Results (including context, evaluation, and market impact)

EOW offered a safe and easy way for consumers to buy from the entire range of products directly from HUL through a mobile application, with deliveries being made Direct2Home by a well-trained mobile delivery team.

Categories: | Industries: | Objectives: mCommerce | Awards: X Bronze Winner

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Hindustan Unilever’s Kissan Uses Outbrain to Drive Video Engagement

Success story.

Hindustan Unilever Limited (HUL) is India’s largest Fast Moving Consumer Goods company with a heritage of over 80 years in India, touching the lives of two out of three Indians. With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skincare, toothpaste, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the company is part of the everyday life of millions of consumers across India.

Conceived in 2012, HUL’s Kissanpur campaign emphasizes the importance of real, natural experiences. Through fun and educational content, kids are encouraged to connect with nature by sowing seeds and growing juicy tomatoes.

As part of the “100% Real” campaign, the brand also launched the “Kissan 100% Real Blogger” contest, inviting bloggers from the country to share their “100% real experiences” stories of growing up. The contest was followed by a digital film titled “Kissanpur – Real Joy of Togetherness.” Hosted on the website and social media, the short film sought to connect the brand with parents on an emotional level.

Kissan realized the importance of using content marketing to engage with their target audiences, however, developing a great story and message that was appealing through video content alone was not sufficient enough to capture the attention of their audience. They quickly realized the need to integrate their marketing efforts with a content distribution strategy.

With a reach of over 23 million monthly unique visitors on desktop and more coming from mobile in India, Outbrain was the perfect partner for HUL to drive audiences consuming content on premium publisher sites to the Kissan home page.HUL launched a campaign to drive traffic to two pages with same video content:• Earned Media: An article on Storypick covering the video.• Owned Media: The video embedded on the www.Kissan.in homepage.

By using Outbrain, Hindustan Unilever’s content marketing campaign delivered the following results by driving audiences from premium publisher sites to the Kissan homepage.

Results by Numbers

  • >122K Video views delivered on the homepage
  • 1:24 Avg. time on site for a 2 minute video

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  20. Hindustan Unilever's Case Study: Video Engagement

    Hindustan Unilever's Kissan Uses Outbrain to Drive Video Engagement. Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods company with a heritage of over 80 years in India, touching the lives of two out of three Indians. With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos ...

  21. Corporate Restructuring through Demerger: A Case Study on Hindustan

    For this purpose, the demerger of Unilever India Exports Limited from Hindustan Unilever Limited has been taken as a case study. Hindustan Unilever Limited (HUL) demerged its fast moving consumer goods (FMCG) exports business into a wholly owned subsidiary Unilever India Exports Limited (UIEL) with effect from 1st April 2011.

  22. Detailed Marketing Mix Of Hindustan Unilever (2024)

    1. Product Strategy of Hindustan Unilever Limited. Food and beverages, home care, personal care, and water purifiers account for the majority of the company's product portfolio. In the HUL marketing mix, the complete product range across categories is discussed as follows. Food Products - In the ice cream sector, HUL has Kwality Wall's ...

  23. A Study on Marketing and Sustainability

    A Study on Marketing and Sustainability - A Case Study Approach with Reference to Hindustan Unilever Limited. International Journal of Scientific Research and Modern Education (IJSRME) ISSN (Online): 2455 - 5630 , Volume I, Issue I, 2016 . 6 Pages Posted: 1 May 2017.