Premium Essay

Hul Entering in Rural Market

In:

Submitted By shivam121
Words 9456
Pages 38
THE WILLIAM DAVIDSON INSTITUTE

06 November 2006

case 1-428-604

Rural demand for, and consumption of, consumer products is set to explode. The challenge for most companies is to be able to offer appropriate products in an affordable way in relatively remote locations. It is our view that India will soon see an inflexion point in rural consumption.1 Mr. K.B. Dadiseth, Hindustan Lever Limited Chairman

About Hindustan Lever Limited
Hindustan Lever Limited began operating in India in 1888 with the distribution of its “Made in England” Sunlight detergent. In 1931, when India was still a British colony, Hindustan Vanaspati Limited was formed as a 100% subsidiary of Unilever in India. It primarily sold soaps, detergents, and other household products to a select group of affluent consumers, such as British government employees and the Indian elite. In

Research Assistant Maulin Vakil and Professor Ted London of the University of Michigan developed this case. They thank Vijay Sharma and Rohithari Rajan of Hindustan Lever for their assistance.© 2008, Ted London.

DO

In fact, since 1999 revenues at HLL had remained nearly constant, an outcome stockholders had not welcomed. With this lack of growth, increasing attention was directed to the company’s Millennium Plan an ambitious blueprint outlining the company’s growth strategies for the 21st century. The Millennium Plan was a part of the company’s renewed emphasis on business focus and operational efficiencies. Additionally, a core aspect of the Plan was to identify and nurture businesses of the future. Over 150 new businesses were proposed before the list was narrowed down to nine. These included a foray into drinking water, a plan for network-based marketing (along the lines of Amway) and an entry into retailing herbal therapy products and services through a chain of therapy centers. Perhaps the most

Similar Documents

Premium Essay

Strategic Management

...HINDUSTAN UNILEVER LIMITED (HUL) QUESTION 1. EXTERNAL ANALYSIS OF THE ORGANISATION HUL is one of the largest FMCG Company with more than 100 factories all over India. It is 75 year old and touches every second Indian’s life, out of three. Its mission statement is- “add vitality to life” (<http://www.hul.co.in/aboutus/introductiontohul/>) One of the most effective tools for analysing external environment of an organisation is PEST ANALYSIS. 1.POLITICAL FACTORS: These factors affect the organisation in many ways. Depending on the situation, these factors can generate opportunities for organisation or may be disadvantages too by imposing taxes and duties. Indian political system is going through various changes. In India, FMCG market can be categorised into rural and urban. Rural sector is mainly dependant on agriculture as its main source of living is with generally lower penetration levels and more unorganised part. Whereas, urban sector has high penetration levels and more spending power. That is why rural sector was the main area of focus for government for development in the recent past. There were many schemes run by government to generate employment and major investments were made in infrastructure development. Because of all this, there was an increase in disposable income level in rural sector and hence rise in FMCGs demand. (<http://www.hul.co.in/>) HUL has its own set standards to deal with political issues. It applies its rapport and experience to...

Words: 3778 - Pages: 16

Premium Essay

Marketing

...Marketing Channel Strategies in Rural Emerging Markets Unlocking Business Potential By Benjamin Neuwirth Benjamin Neuwirth, Kellogg School of Management, bneuwirth2012@kellogg.northwestern.edu 1 EXECUTIVE SUMMARY In his landmark book “The Fortune at the Bottom of the Pyramid,” C.K. Prahalad describes the profits that can be earned by selling products to “Bottom of the Pyramid” customers. While there is truth to this, companies face unique challenges when operating in the rural regions of emerging markets where many of these customers live. For example, the consumer population is dispersed over a wide geographic area, transportation infrastructure is often poorly developed, and many consumers have sporadic and extremely low incomes. This paper examines these challenges from a marketing channel perspective. The fundamental question is: How can companies entering into rural emerging markets design a marketing channel strategy that meets the needs of customers and allows for the long-term profitable success of the business? I begin answering this question by examining common challenges that companies operating in this environment face. Each challenge is accompanied by examples of companies that have solved the problem in a unique way. Then, I develop a generalized framework for designing marketing channels in rural emerging markets. Finally, I apply the framework to d.light Design, a company that manufactures and sells solar lanterns in India and Africa and that I worked...

Words: 17572 - Pages: 71

Premium Essay

Market Segmentation of Kwality Walls Cornetto

...Market Segmentation of Kwality Walls Cornetto HUL had entered the ice-cream market through acquisitions of approximately 150 crores. It acquired Dollops from Cadbury’s in 1993 while it bought Kwality and Milkfood in 1995. Since Amul has entered into the ice-cream market, Walls has lost a huge market share to Amul. To again gain the lost market share, HUL has modified their market segmentation. On the basis of Density, it has segmented Indian market into Urban and rural area. It has decided to focus only on the urban segment specifically the top 6 metros of India. Over the years, it has expanded to the top 30 cities. The philosophy behind this decision is that the top 30 cities has 70% of total ice-cream consumers in India, i.e. the 30:70 principle. Kwality walls just want to increase the consumption of ice-creams in the markets in which they are present rather than entering into new market. HUL has also segmented the market based on demographics into three categories: Kids, Teenagers and Families. Cornetto as a brand Is targeted at teenagers while Paddle pop is for kids while red tub is for families. This kind of segmentation has allowed to create more consumption opportunity for different segments. For e.g. teenage hangouts for promotion of Cornetto. This segmentation also allows pricing based differentiation for the three segments. Paddle pop is sold at Rs.5 to Rs. 10, Cornetto for youth is priced between Rs. 20 and Rs. 30 while the family pack ice-creams are priced between...

Words: 690 - Pages: 3

Premium Essay

Fair N Lovely

...Category Definition 2 Fairness Cream Market 3 Competitive Landscape 4 Environmental Analysis 5 Porter’s Five Force Analysis 10 Introduction to the Company and our product “Fair and Lovely” 12 STP Analysis 15 Consumer Behaviour 18 SWOT Analysis 26 Recommendations 27 Bibliography 28 Product Category Definition Fairness Cream products are a part of the personal care product segment. More specifically, they are a sub-set of the skin care product segment. Given below is the product category map: Personal Care Products The product category refers to the products that customers use to enhance or support their personal appearance, hygiene, and well being in general Fairness Products Skin Care Products The segment includes various products such as moisturizers, anti-ageing creams, and sun-screens that customers use to take care of their skin Fairness segment is that part of the skin care segment which includes products that are responsible for improving the skin fairness (permanently or temporarily) For the purpose of this study, we are concentrating only on the Fairness Cream Products, i.e. the fairness products available in cream form, and not in the form of soaps, gels, etc. Also, we are only considering the products whose primary utility is skin fairness. However, these products might also be delivering some additional (but secondary) utility. Fairness Cream Market Market Overview Indian fairness cream market is a highly developed and competitive...

Words: 5210 - Pages: 21

Premium Essay

Business Marketing

...SHAKTI-ORGANIZATION NAME UNLEVEL PROBLEM AND SOLUTION 3.BENEFITS 4.HUL-PROJECT SHAKTI PRESENTATION TRANSCRIPT 5.SUPPORT SHAKTI. 6.MARKET LINKAGE FOR RURAL PRODUCTS 7.INDUSTRY ROLE IN BUILDING MARKET LINKAGES 8.SCOPE AND OPPORTUNITIES 9.LITERATRURE REVIEW 10.CONCLUSION 11.REFERENCES AND BIBLIOGRAPHY Introduction  Rural products of India are unique, innovative and have good utility and values. Large number of these rural products (like handicraft items, food products, embroidery, clothes & other products) sustains a significant segment of the population in the rural areas. Several attributes of rural products can be identified, for which, it has a demand in the market. Out of the lots, ‘ethnic origin’ and ‘indigenous design & appearance’ are two traits of rural products, attracting a premium in the market. But, contrary to this, the non-uniformity of rural products (from one another) and lack of its quality control measures has been creating a negative demand. Besides, the small sized and dispersed production units of these rural products hinder realization of the economies of scale in marketing and result in high transaction costs per unit of output. Niche-based products have no local market. Products in local use are also not marketed horizontally; they often first travel down to market through a long chain of intermediaries and then up to more difficult locations in the rural areas. In...

Words: 4266 - Pages: 18

Premium Essay

Paper on Project Shakti

...UNLEVEL PROBLEM AND SOLUTION 3.BENEFITS 4.HUL-PROJECT SHAKTI PRESENTATION TRANSCRIPT 5.SUPPORT SHAKTI. 6.MARKET LINKAGE FOR RURAL PRODUCTS 7.INDUSTRY ROLE IN BUILDING MARKET LINKAGES 8.SCOPE AND OPPORTUNITIES 9.LITERATRURE REVIEW 10.CONCLUSION 11.REFERENCES AND BIBLIOGRAPHY Introduction Rural products of India are unique, innovative and have good utility and values. Large number of these rural products (like handicraft items, food products, embroidery, clothes & other products) sustains a significant segment of the population in the rural areas. Several attributes of rural products can be identified, for which, it has a demand in the market. Out of the lots, ‘ethnic origin’ and ‘indigenous design & appearance’ are two traits of rural products, attracting a premium in the market. But, contrary to this, the non-uniformity of rural products (from one another) and lack of its quality control measures has been creating a negative demand. Besides, the small sized and dispersed production units of these rural products hinder realization of the economies of scale in marketing and result in high transaction costs per unit of output. Niche-based products have no local market. Products in local use are also not marketed horizontally; they often first travel down to market through a long chain of intermediaries and then up to more difficult locations in the rural areas. In the process, the people in rural areas suffer from both low prices as producers...

Words: 4232 - Pages: 17

Premium Essay

Hindusthan Uniliver Limited

...THE REQUIREMENT FOR THE DEGREE OF BACHELOR OF MANAGEMENT STUDIES UNIVERSITY OF MUMBAI ACADEMIC YEAR 2009-2010 CHIKITSAK SAMUHA’S S.S & LS PATKAR VARDE COLLEGE OF ARTS COMMERCE & SCIENCE AND V.P VARDE COLLEGE OF COMMERCE & ECONOMICS,GOREGAON (W) MUMBAI -62 1 CHIKITSAK SAMUHA’S PATKAR – VARDE COLLEGE OF ARTS, COMMERCE SCIENCE. GOREGAON (W), MUMBAI -400063 CERTIFICATE This is to certify that PRIYANKA SHASHIKANT TELANG OF T.Y.Bachelor of Management studies VI (2009-2010) has successfully completed the project on “BRANDING STRATEGY OF HUL” under the guidance of SAMADHAN SIR. COURSE CO-ORDINATOR PROJECT GUIDE/INTERNAL EXAMINAR EXTERNAL EXAMINER 2 CHIKITSAK SAMUHA’S PATKAR – VARDE COLLEGE OF ARTS, COMMERCE SCIENCE. GOREGAON (W), MUMBAI -400063 DECLARATION I, PRIYANKA TELANG OF Patkar –Varde College of TYBMS (semester VI) hereby declare that I have completed this project on “BRANDING STRATEGY OF HUL” during the academic year 2009-2010. The information submitted is true and original to the best of my knowledge. DATE: SIGNATURE OF STUDENT PLACE: MUMBAI 3 ACKNOWLEDGEMENT I wish to express my profound gratitude to PROF.SAMADHAN KHAMKAR for his kind support and valuable guidance for the completion of this project. I also express my sincere thanks to my principal and BMS co-coordinators who guided, instructed and encouraged me. I would also like to acknowledge the assistance and encouragement of the various professionals and persons whom...

Words: 11308 - Pages: 46

Free Essay

Manage

...UNCONVENTIONAL MEDIA ON RURAL MASSES SWATI PRIYA1 & POOJA BHATIA2 1 Senior Lecturer, Department of Humanities, Babu Banarsi Das National Institute of Technology and Management, Lucknow, Uttar Pradesh, India 2 Professor and Head, Department of MBA, Babu Banarsi Das National Institute of Technology and Management, Lucknow, Uttar Pradesh, India ABSTRACT The paper discusses the impact of unconventional media on the buying behavior of rural consumers. It also studies the problems and challenges of rural communication in rural Uttar Pradesh and highlights the relevance of non conventional media in rural markets. Non conventional media are effective tools for raising hype about new products or for re-launching existing products. This is particularly true in the case of FMCG products, where the hype generated can propel sales volumes, provided the advertising campaign is appealing and is backed by a good distribution system. The paper elucidates the fall outs of conventional media by highlighting some national advertisement campaigns carried out by corporate giants to communicate with the target audience in rural markets. The authors take up the empirical views in highlighting the relevance of non conventional media by analyzing the national campaigns from secondary data sources. KEYWORDS: Rural Communication, Non Conventional Media Vehicle and Rural Consumer Buying Behavior INTRODUCTION Rural communication calls for understanding the key challenges at hand- rural heterogeneity...

Words: 4797 - Pages: 20

Free Essay

Industry Risk

......................................................................................................................................... 7 Supply & Demand and-side Drive .................................................................................................................... 9 Porters‘ Five Force Model .............................................................................................................................. 11 Critical Success Factors .................................................................................................................................. 12 Environmental scanning (PESTEL Analysis) ................................................................................................. 13 MARKET TREND AND OUTLOOK ................................................................................................................ 16 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11...

Words: 7270 - Pages: 30

Premium Essay

Marketing of Hul

...in the village. Rural marketing is the new buzzword as the new marketing mantra for the survival and the growth of and the success forcing companies to go rural. These statements tell the importance of rural marketing for the survival and the growth of any marketers and is supported by the facts given below- The total FMCG market is in excess of US$16.4 billion and is set to treble from US$11.6 billion in 2003 to US$33.4 billion in 2015. It is currently growing at 14%. With 12.2% of the world population living in the villages of India, the Indian rural FMCG market is something no one can overlook. MarketingMix : Marketing mix refers to the set of tools used by a company to promote and sell its brands or product in market. “The most important decisions, and indeed the essence of the marketing manager’s task within a company, are decision about the controllable marketing variables: termed the 4Ps: product, price, place and promotion.” On contrary to the traditional 4P’smodel, some of the marketers are adopting the 4A’smodel, which is considered to be more customers oriented. As per figure 2, “The4A’s of rural marketing mix i.e. Affordability, Availability, Acceptability and the Awareness have been now universally accepted both by practiconers and the academicians, as touch stone for the success of any product/ business strategy in the rural market. What 4P’s are to main stream marketing, the 4A’s are for the rural marketing.” Marketing Mix –The HUL Way: How far...

Words: 1869 - Pages: 8

Premium Essay

Fmcg Industry India

...FINANCIAL ANALYSIS OF FMCG INDUSTRY IN INDIA IIM – LUCKNOW, IPMX (2015-16) MANAC PROJECT (TERM I) – GROUP 11 FOR SUBMISSION TO PROF. PRAKASH SINGH Compiled By: 1. Prateek Dashora (IPMX08035) 2. Shreyas Bakshi (IPMX08047) 3. Siddhartha Chatterjee (IPMX08049) 4. Supriyo Chakraborty (IPMX08051) 5. Susmit Majumdar (IPMX08054) TABLE OF CONTENTS Table of Contents Choice of Industry: FMCG............................................................................................................................................................................................ 2 Macro Factors Affecting the Industry ................................................................................................................................................................. 4 Industry Characteristics.............................................................................................................................................................................................. 6 Major Accounting Policies of the Industry ................................................................................................................................................... 10 Impact of IFRS ................................................................................................................................................................................................................. 14 Major Deviations in Acccounting Policy of Major Players of the Industry...

Words: 4885 - Pages: 20

Premium Essay

Dabur

...A REPORT ON EXPANDING THE DISTRIBUTION NETWORK IN RURAL AND UNTAPPED MARKET OF DELHI IN DABUR INDIA LIMITED By KunalKapoor 11BSPHH010422 IBS, Hyderabad Summer Internship Report Page 1 A PROJECT REPORT ON EXPANDING THE DISTRIBUTION NETWORK IN RURAL AND UNTAPPED MARKET OF DELHI By KunalKapoor (11BSPHH010422) A Report submitted in partial fulfillment of the requirements of MBA program of IBS, Hyderabad Submitted To: Mr. TanmayThaker Regional Sales Manager DABUR INDIA (Company Guide) & Mr. Raja shekhar Reddy IBS, HYDERABAD (Faculty Guide) In DABUR INDIA Summer Internship Report Page 2 INTERNSHIP CERTIFICATE Summer Internship Report Page 3 AUTHORIZATION The project report titled as “expanding the distribution network in rural and untapped market of Delhi” has been authorized by DABUR INDIA LTD as a part of the evaluation for Summer Internship Program. The project has been submitted as a partial fulfillment of the requirement of Masters of Business Administration (MBA) program of IBS, Hyderabad. Submitted By: KunalKapoor (11BSPHH010422) Submitted To: Mr. TanmayThaker Regional Sales Manager DABUR INDIA Mr. Raja Shekhar Reddy Faculty Guide IBS, Hyderabad Summer Internship Report Page 4 ACKNOWLEDGEMENT Summer Internship Program(SIP) aims to provide every student with an opportunity to apply theoretical concepts to the real business scenarios. The wealth of knowledge and experiences shared by all involved in completion of successful...

Words: 8445 - Pages: 34

Premium Essay

Retailing in Rural Market

...a n Aca d e m i c Re s ea r ch J o u rn a l s SAJMMR: South Asian Journal of Marketing & Management Research RURAL RETAIL REVOLUTION: THE RISE OF RURAL MARKET ASHISH GUPTA* *Research Scholar, School of management Studies, Motilal Nehru National Institute of Technology, Allahabad, India. ABSTRACT “The future lies with those companies who see the poor as their customers." C. K. Prahalad Strategic Guru Rural India is characterized by low per capita income, low productivity, low literacy and low rate of industrialization along with absence of basic amenities. The unprivileged class is set back by a lack of educational opportunities that could empower them to confidently pursue economic progress and overcome the debilitating effects of low literacy and rigid social hierarchies. The Indian rural retail opportunity is currently estimated to be in excess of Rs. 1400 billion (approximately US$34 billion). The figure is likely to touch Rs. 1800 billion (approximately US$ 43 billion) in 2010 and go up to Rs. 2400 billion (approximately US$ 58 billion) by 2015, according to CII - YES BANK Study on the Rural Retail Sector15. India’s rural markets are growing at double the rate of urban markets. The retail revolution is going to act as a catalyst. So, the new concept that is hitting the market today is the "Rural Retailing". KEYWORDS: Rural India, Rural retail, rural market, Retail revolution, Kirana stores. ______________________________________________________________________________...

Words: 7474 - Pages: 30

Premium Essay

Strategic Management

...personal care. Unilever operates in more than 100 countries, has a turnover of € 39.6 billion and net profit of € 3.685 billion in 2006 and derives 41 per cent of its income from the developing and emerging economies around the world. It has 179,000 employees and is a culturally-diverse organisation with its top management coming from 24 nations. Internationalisation is based on the principle of local roots with global scale aimed at becoming a ‘multi-local multinational’. The genesis of Hindustan Unilever (HUL) in India, goes back to 1888 when Unilever exported Sunlight soap to India. Three Indian, subsidiaries came into existence in the period 1931-1935 that merged to form Hindustan Lever in 1956. Mergers and acquisitions of Lipton (1972), Brooke Bond (1984), Ponds (1986), TOMCO (1993), Lakme (1998) and Modern Foods (2002) have resulted in an organisation that is a conglomerate of several businesses that have been continually restructured over the years. HUL is one of the largest FMCG company in India with total sales of Rs. 12,295 crore...

Words: 5461 - Pages: 22

Premium Essay

Sampa

...KHAITAN akhaitan@hemonline.com www.hemonline.com BROKING | DEPOSITORY | DISTRIBUTION | FINANCIAL ADVISORY INDEX INDIAN ECONOMY - 01 BANKING INDUSTRY OVERVIEW RECENT NEWS PRODUCTS & SERVICES ARE INDIAN BANKS SAFE??? GRAPHICAL PRESETATION RBI STEPS TO FIGHT AGAINST LIQUIDITY CRUNCH ANALYSIS OF BANKING SECTOR A) CRAMELS STRATEGY B) PORTER'S FIVE FORCES MODEL C) PEST ANALYSIS D) SWOT ANALYSIS GROWTH PROSPECT & MARKET OPPORTUNITIES THINGS TO WATCH & KEY TAKEAWAYS - 02 - 03 - 04 - 05 - 06 - 07 - 08 - 09 - 10 -11 - 12 - 13 - 14 - 15 - 16 - 17 - 18 - 19 - 20 - 21 - 22 - 23 - 24 - 25 - 27 - 28 - 29 - 30 - 31 - 32 - 34 - 36 - 38 - 40 - 42 - 44 - 46 - 48 - 50 - 52 - 54 TELECOM INDUSTRY OVERVIEW RECENT UPDATES ALL ABOUT TELECOM INDUSTRY SEGMENTS GOVERNMENT REGULATIONS ALL ABOUT ‘3RD GENERATION TECHNOLOGY (3G)’ FUTURE OF INDIAN TELECOM INDUSTRY ANALYSIS OF TELECOM SECTOR A) PORTER'S FIVE FORCES MODEL B) SWOT ANALYSIS & KEY TAKEAWAYS WHAT’S ROAD AHEAD FMCG INDUSTRY OVERVIEW INDUSTRY CATEGORY AND PRODUCTS GROWTH PROSPECT GOVERNMENT INITATIVE MARKET OPPORTUNITIES ANALYSIS OF FMCG SECTOR A) PORTER'S FIVE FORCES MODEL B) SWOT ANALYSIS & KEY TAKEAWAYS COMPANIES BHARTI AIRTEL LIMITED RELIANCE COMMUNICATION HDFC BANK STATE BANK OF INDIA UNION BANK OF INDIA AXIS BANK LIMITED PUNJAB NATIONAL BANK HINDUSTAN UNILEVER LIMITED GODREJ CONSUMER PRODUCTS LIMITED DABUR INDIA LIMITED EMAMI LIMITED ICSA INDIA LIMITED For Private Circulation Only Hem Institutional Research Desk ...

Words: 22521 - Pages: 91